# EDGAR Filing Document

**Accession Number:** 0001825248
**File Stem:** 0001825248-25-000022
**Filing Date:** 2025-11
**Character Count:** 965176
**Document Hash:** cddbb29c782245090030400a527245e0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001825248-25-000022.hdr.sgml**: 20251112

**ACCESSION NUMBER**: 0001825248-25-000022

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 98

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251112

**DATE AS OF CHANGE**: 20251112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Franklin BSP Capital Corp
- **CENTRAL INDEX KEY:** 0001825248

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 814-01360
- **FILM NUMBER:** 251472076

**BUSINESS ADDRESS:**
- **STREET 1:** ONE MADISON AVENUE
- **STREET 2:** SUITE 1600
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10010
- **BUSINESS PHONE:** (212) 588-6700

**MAIL ADDRESS:**
- **STREET 1:** ONE MADISON AVENUE
- **STREET 2:** SUITE 1600
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10010

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Franklin BSP Capital L.L.C.
- **DATE OF NAME CHANGE:** 20200917

?xml version='1.0' encoding='ASCII'? fbcc-20250930

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

(Mark One)

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

**For the quarterly period ended September 30, 2025**

**OR**

---

| | |
|:---|:---|
| ◻ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**<br>**For the transition period from __ to __** |

---

**Commission file number: 814-01360**

**FRANKLIN BSP CAPITAL CORPORATION**

(Exact Name of Registrant as Specified in its Charter)

---

| | |
|:---|:---|
| **Delaware** | **85-2950084** |
| (State or Other Jurisdiction of <br>Incorporation or Organization) | (I.R.S. Employer <br>Identification No.) |

---

---

| | |
|:---|:---|
| **One Madison Avenue, Suite 1600 New York, New York** | **10010** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

---

| | | |
|:---|:---|:---|
| **(212) 588-6770**<br>(Registrant's Telephone Number, Including Area Code) | **(212) 588-6770**<br>(Registrant's Telephone Number, Including Area Code) | **(212) 588-6770**<br>(Registrant's Telephone Number, Including Area Code) |
| Securities registered pursuant to Section 12(b) of the Act:  | Securities registered pursuant to Section 12(b) of the Act:  | Securities registered pursuant to Section 12(b) of the Act:  |
| **Title of Each Class** | **Trading Symbol(s)** | **Name of Each Exchange on Which Registered** |
|  | N/A | N/A |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or Section 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ◻ | Accelerated filer | ◻ |
| Non-accelerated filer | ⌧ | Smaller reporting company | ◻ |
| | | Emerging growth company | ⌧ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ⌧

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ◻ No ⌧

The number of shares of the registrant's Common Stock, $0.001 par value, outstanding as of November 7, 2025 was 134,887,462.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**FORM 10-Q FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| | Page |
| **PART I - FINANCIAL INFORMATION** |  |
| <u>[Item 1. Consolidated Financial Statements](#ica7834b2a94a41c89a6a99cf91879fe8_16)</u> | <u>[1](#ica7834b2a94a41c89a6a99cf91879fe8_16)</u> |
| <u>[Consolidated Statements of Assets and Liabilities as of](#ica7834b2a94a41c89a6a99cf91879fe8_19)[September](#ica7834b2a94a41c89a6a99cf91879fe8_19)[30, 2025 (Unaudited) and December 31, 2024](#ica7834b2a94a41c89a6a99cf91879fe8_19)</u> | <u>[1](#ica7834b2a94a41c89a6a99cf91879fe8_19)</u> |
| <u>[Consolidated Statements of Operations for the Three and](#ica7834b2a94a41c89a6a99cf91879fe8_22)[Nine](#ica7834b2a94a41c89a6a99cf91879fe8_22)[Months Ended](#ica7834b2a94a41c89a6a99cf91879fe8_22)[September](#ica7834b2a94a41c89a6a99cf91879fe8_22)[30, 2025 and 2024 (Unaudited)](#ica7834b2a94a41c89a6a99cf91879fe8_22)</u> | <u>[2](#ica7834b2a94a41c89a6a99cf91879fe8_22)</u> |
| <u>[Consolidated Statements of Changes in Net Assets for the](#ica7834b2a94a41c89a6a99cf91879fe8_25)[Three and](#ica7834b2a94a41c89a6a99cf91879fe8_25)[Nine](#ica7834b2a94a41c89a6a99cf91879fe8_25)[Months Ended](#ica7834b2a94a41c89a6a99cf91879fe8_25)[September](#ica7834b2a94a41c89a6a99cf91879fe8_25)[30, 2025 and 2024 (Unaudited)](#ica7834b2a94a41c89a6a99cf91879fe8_25)</u> | <u>[4](#ica7834b2a94a41c89a6a99cf91879fe8_25)</u> |
| <u>[Consolidated Statements of Cash Flows for the](#ica7834b2a94a41c89a6a99cf91879fe8_28)[Nine](#ica7834b2a94a41c89a6a99cf91879fe8_28)[Months Ended](#ica7834b2a94a41c89a6a99cf91879fe8_28)[September](#ica7834b2a94a41c89a6a99cf91879fe8_28)[30, 2025 and 2024 (Unaudited)](#ica7834b2a94a41c89a6a99cf91879fe8_28)</u> | <u>[5](#ica7834b2a94a41c89a6a99cf91879fe8_28)</u> |
| <u>[Consolidated Schedules of Investments as of](#ica7834b2a94a41c89a6a99cf91879fe8_31)[September](#ica7834b2a94a41c89a6a99cf91879fe8_31)[30, 2025 (Unaudited) and December 31, 2024](#ica7834b2a94a41c89a6a99cf91879fe8_31)</u> | <u>[7](#ica7834b2a94a41c89a6a99cf91879fe8_31)</u> |
| <u>[Notes to Consolidated Financial Statements (Unaudited)](#ica7834b2a94a41c89a6a99cf91879fe8_37)</u> | <u>[36](#ica7834b2a94a41c89a6a99cf91879fe8_37)</u> |
| <u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#ica7834b2a94a41c89a6a99cf91879fe8_103)</u> | <u>[103](#ica7834b2a94a41c89a6a99cf91879fe8_103)</u> |
| <u>[Item 3. Quantitative and Qualitative Disclosures About Market Risk](#ica7834b2a94a41c89a6a99cf91879fe8_136)</u> | <u>[127](#ica7834b2a94a41c89a6a99cf91879fe8_136)</u> |
| <u>[Item 4. Controls and Procedures](#ica7834b2a94a41c89a6a99cf91879fe8_139)</u> | <u>[128](#ica7834b2a94a41c89a6a99cf91879fe8_139)</u> |
| **PART II - OTHER INFORMATION** |  |
| <u>[Item 1. Legal Proceedings](#ica7834b2a94a41c89a6a99cf91879fe8_145)</u> | <u>[129](#ica7834b2a94a41c89a6a99cf91879fe8_145)</u> |
| <u>[Item 1A. Risk Factors](#ica7834b2a94a41c89a6a99cf91879fe8_148)</u> | <u>[129](#ica7834b2a94a41c89a6a99cf91879fe8_148)</u> |
| <u>[Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#ica7834b2a94a41c89a6a99cf91879fe8_151)</u> | <u>[129](#ica7834b2a94a41c89a6a99cf91879fe8_151)</u> |
| <u>[Item 3. Defaults Upon Senior Securities](#ica7834b2a94a41c89a6a99cf91879fe8_154)</u> | <u>[129](#ica7834b2a94a41c89a6a99cf91879fe8_154)</u> |
| <u>[Item 4. Mine Safety Disclosures](#ica7834b2a94a41c89a6a99cf91879fe8_157)</u> | <u>[129](#ica7834b2a94a41c89a6a99cf91879fe8_157)</u> |
| <u>[Item 5. Other Information](#ica7834b2a94a41c89a6a99cf91879fe8_160)</u> | <u>[129](#ica7834b2a94a41c89a6a99cf91879fe8_160)</u> |
| <u>[Item 6. Exhibits](#ica7834b2a94a41c89a6a99cf91879fe8_163)</u> | <u>[130](#ica7834b2a94a41c89a6a99cf91879fe8_163)</u> |
| <u>[Signatures](#ica7834b2a94a41c89a6a99cf91879fe8_166)</u> | <u>[131](#ica7834b2a94a41c89a6a99cf91879fe8_166)</u> |

---

------

**PART I. FINANCIAL INFORMATION**

**ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS**

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES**

**(dollars in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| | **(Unaudited)** | |
| **Assets:** |  |  |
| Investments, at fair value: |  |  |
| Control Investments, at fair value (amortized cost of $748,089 and $800,240, respectively) | $714830 | $785556 |
| Affiliate Investments, at fair value (amortized cost of $43,268 and $37,723, respectively) | 36942 | 35596 |
| Non-Affiliated Investments, at fair value (amortized cost of $3,414,256 and $3,215,215, respectively) | 3329724 | 3144923 |
| Investments, at fair value (amortized cost of $4,205,613 and $4,053,178, respectively) | 4081496 | 3966075 |
| Cash and cash equivalents | 108603 | 119096 |
| Restricted cash | 16963 | 11664 |
| Interest and dividends receivable | 48218 | 52467 |
| Receivable for unsettled trades | 46560 | 5090 |
| Prepaid expenses and other assets | 6234 | 6916 |
| Due from broker |  | 7690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $4308074 | $4168998 |
| **Liabilities:** |  |  |
| Debt (net of deferred financing costs of $11,835 and $8,547, respectively) | $2303720 | $2054738 |
| Secured borrowings |  | 30758 |
| Management fees payable | 15517 | 15181 |
| Incentive fees on income payable | 8285 | 9017 |
| Accounts payable and accrued expenses | 31280 | 27761 |
| Payable for unsettled trades |  | 23995 |
| Interest and debt fees payable | 27134 | 18237 |
| Directors' fees payable | 28 | 16 |
| Other liabilities | 780 | 1502 |
| Unrealized loss on derivatives | 353 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 2387097 | 2181205 |
| Commitments and Contingencies (Note 7) |  |  |
| Redeemable convertible preferred stock Series A, $0.001 par value, 50,000,000 shares authorized; 77,500 issued and outstanding at both September 30, 2025 and December 31, 2024 | 77430 | 77416 |
| **Net Assets attributable to common stock:** |  |  |
| Common stock, $0.001 par value, 450,000,000 shares authorized; 134,894,155 issued and outstanding at September 30, 2025, and 135,487,595 issued and outstanding at December 31, 2024 | 136 | 135 |
| Additional paid in capital | 2509232 | 2517890 |
| Total distributable earnings (loss) | (665821) | (607648) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total net assets attributable to common stock** | 1843547 | 1910377 |
| **Total liabilities, redeemable convertible preferred stock, and net assets attributable to common stock** | $4308074 | $4168998 |
| Net asset value per share attributable to common stock | $13.67 | $14.10 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(dollars in thousands, except share and per share data)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Investment income:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;From Control Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | $5432 | $6241 | $17010 | $24806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend income | 12602 | 14638 | 41299 | 39241 |
| **Total investment income from Control Investments** | 18034 | 20879 | 58309 | 64047 |
| &nbsp;&nbsp;&nbsp;&nbsp;From Affiliate Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 536 | 1052 | 1610 | 3309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend income |  |  |  | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment-in-kind income | 149 | 300 | 715 | 930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee and other income | (9) |  |  | 1 |
| **Total investment income from Affiliate Investments** | 676 | 1352 | 2325 | 4440 |
| From Non-Affiliated Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 77733 | 78510 | 232828 | 221168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend income | 309 | 34 | 951 | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment-in-kind income | 5316 | 4126 | 15014 | 13510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee and other income | 942 | 148 | 2486 | 850 |
| **Total investment income from Non-Affiliated Investments** | 84300 | 82818 | 251279 | 235629 |
| Interest from cash and cash equivalents | 923 | 1135 | 2952 | 3243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment income | 103933 | 106184 | 314865 | 307359 |
| **Operating expenses:** |  |  |  |  |
| Management fees | 15493 | 14613 | 45709 | 38931 |
| Incentive fee on income | 8122 | 8820 | 25052 | 26843 |
| Interest and debt fees | 35704 | 33166 | 104445 | 84377 |
| Professional fees | 1490 | 2079 | 5408 | 5887 |
| Other general and administrative | 1561 | 1755 | 5802 | 4872 |
| Administrative services | 217 | 222 | 648 | 692 |
| Directors' fees | 256 | 255 | 757 | 854 |
| Total expenses | 62843 | 60910 | 187821 | 162456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) before income taxes | 41090 | 45274 | 127044 | 144903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense, including excise tax | 1012 | 869 | 2462 | 2084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net investment income (loss)** | 40078 | 44405 | 124582 | 142819 |
| **Realized and unrealized gain (loss):** |  |  |  |  |
| Net realized gain (loss) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control Investments |  | (3) | (164) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate Investments |  | 195 | 137 | 557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Affiliated Investments | 970 | (22859) | (7049) | (21685) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain (loss) on derivatives | 17 |  | 23 |  |
| Total net realized gain (loss) | 987 | (22667) | (7053) | (21134) |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(dollars in thousands, except share and per share data)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net change in unrealized appreciation (depreciation) on investments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control Investments | $(7183) | $(3588) | $(18575) | $(14604) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate Investments | (1688) | 839 | (4199) | (1477) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Affiliated Investments | (6776) | 12197 | (14240) | (14257) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in deferred taxes | (1132) | (638) | (4863) | (1667) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on derivatives | (4) |  | (353) |  |
| Total net change in unrealized appreciation (depreciation) on investments | (16783) | 8810 | (42230) | (32005) |
| Net realized and unrealized gain (loss) | (15796) | (13857) | (49283) | (53139) |
| Net increase (decrease) in net assets resulting from operations attributable to common stockholders and participating securities | $24282 | $30548 | $75299 | $89680 |
| Accretion to redemption value of Series A redeemable convertible preferred stock | (5) | (5) | (14) | (14) |
| Accrual of Series A redeemable convertible preferred stock distributions | (1482) | (1686) | (4855) | (5570) |
| Net increase (decrease) in net assets resulting from operations attributable to common stockholders | $22795 | $28857 | $70430 | $84096 |
| **Per share information** |  |  |  |  |
| Net investment income (loss) | $0.30 | $0.33 | $0.92 | $1.14 |
| Net increase (decrease) in net assets resulting from operations attributable to common stockholders and participating securities | $0.18 | $0.23 | $0.56 | $0.71 |
| Basic and diluted earnings (loss) per share | $0.17 | $0.21 | $0.52 | $0.67 |
| Weighted average common shares outstanding | 134499911 | 134566059 | 135068128 | 125686310 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS**

**(dollars in thousands, except share and per share data)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) | $40078 | $44405 | $124582 | $142819 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gain (loss) from investments | 970 | (22667) | (7076) | (21134) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gain (loss) on derivatives | 17 |  | 23 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | (15647) | 9448 | (37014) | (30338) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on derivatives | (4) |  | (353) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in deferred taxes | (1132) | (638) | (4863) | (1667) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion to redemption value of Series A redeemable convertible preferred stock | (5) | (5) | (14) | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrual of Series A redeemable convertible preferred stock distributions | (1482) | (1686) | (4855) | (5570) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in net assets resulting from operations attributable to common stockholders | 22795 | 28857 | 70430 | 84096 |
| **Stockholder distributions:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stockholder distributions | (38958) | (44313) | (128603) | (100499) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net decrease in net assets attributable to common stock from stockholder distributions | (38958) | (44313) | (128603) | (100499) |
| **Capital share transactions:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock, net of issuance costs |  |  |  | 900 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock in connection with the Mergers |  |  |  | 1594261 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinvestment of common stockholder distributions | 8200 | 9803 | 27483 | 23078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock | (1237) | (1847) | (36140) | (43017) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in net assets attributable to common stock from capital share transactions | $6963 | $7956 | $(8657) | 1575222 |
| **Total increase (decrease) in net assets attributable to common stock** | (9200) | (7500) | (66830) | 1558819 |
| **Net assets at beginning of period attributable to common stock** | 1852747 | 1954438 | 1910377 | 388119 |
| **Net assets at end of period attributable to common stock** | $1843547 | $1946938 | $1843547 | $1946938 |
| Net asset value per share attributable to common stock | $13.67 | $14.44 | $13.67 | $14.44 |
| Common shares outstanding at end of period | 134894155 | 134793079 | 134894155 | 134793079 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(dollars in thousands, except share and per share data)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** |
| **Operating activities** |  |  |
| Net increase (decrease) in net assets resulting from operations attributable to common stockholders and participating securities | $75299 | $89680 |
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment-in-kind interest income | (15729) | (14440) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net accretion of discount on investments | (7577) | (18687) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 2005 | 897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of discount on unsecured notes | 479 | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of premium on unsecured notes | (211) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and repayments of investments | 703449 | 529929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments | (842524) | (785784) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized (gain) loss from investments | 7076 | 21134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized (gain) loss on derivatives | (23) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (appreciation) depreciation on investments | 37014 | 30338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (appreciation) depreciation on derivatives | 353 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in operating assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend receivable | 5436 | (4994) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable for unsettled trades | (41471) | (6686) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 682 | 3431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from broker | 7690 | 647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash received in the Mergers |  | 58478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in operating liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management fees payable | 336 | 10884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incentive fees on income payable | (731) | 6099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 3518 | (4345) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for unsettled trades | (23996) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and debt fees payable | 8897 | 18245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors' fees payable | 13 | (397) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (721) | 550 |
| Net cash provided by (used in) operating activities | $(80736) | $(64761) |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of secured borrowings | $(29052) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of shares of common stock |  | 900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (36140) | (43017) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from debt | 954302 | 801724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on debt | (702300) | (508974) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of financing costs | (5293) | (4424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stockholder distributions | (101120) | (77434) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stockholder distributions | (4855) | (5570) |
| Net cash provided by (used in) financing activities | $75542 | $163205 |
| **Net increase (decrease) in cash, cash equivalents and restricted cash** | (5194) | 98444 |
| **Cash, cash equivalents and restricted cash, beginning of period** | 130760 | 55222 |
| **Cash, cash equivalents and restricted cash, end of period** | $125566 | $153666 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(dollars in thousands, except share and per share data)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| **Supplemental and non-cash activities:** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash repayments of secured borrowings | $1706 | $2586 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and non-usage fees paid during the period | $92527 | $63742 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net taxes paid, including excise tax, during the period | $1311 | $4327 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions reinvested during the period | $27483 | $23078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of shares in connection with Mergers <sup>(1)</sup> | $— | $1594261 |

---

<sup>(1)</sup> On January 24, 2024, in connection with the Mergers (as defined in *[Note 1 – Organization](#ica7834b2a94a41c89a6a99cf91879fe8_40)*), the Company acquired net assets of $1,594.3 million for the total stock consideration of $1,598.9 million, inclusive of $4.6 million of transaction costs. For further details, refer to *[Note 19 – Merger with FBLC](#ica7834b2a94a41c89a6a99cf91879fe8_97).*

---

| | | |
|:---|:---|:---|
| | **As of September 30,** | **As of September 30,** |
| | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $108603 | $135387 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 16963 | 18279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $125566 | $153666 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| **Senior Secured First Lien Debt - 169.9% (d)** | | | | | | | |
| 1236904 BC, Ltd. (e) (n) | Software/Services |  | S+ 7.50% (11.78%), 3/4/2027 | $14624 | $14685 | $14332 | 0.8% |
| 1236904 BC, Ltd. (e) (n) (p) | Software/Services |  | S+ 5.50% (9.97%), 3/4/2027 | 17864 | 17596 | 16971 | 0.9% |
| Accel International Holdings, LLC (e) (h) | Industrials |  | S+ 4.50%, 4/26/2032 |  | (22) | (22) | 0.0% |
| Accel International Holdings, LLC (e) (n) (p) | Industrials |  | S+ 4.50% (8.81%), 4/26/2032 | 27685 | 27551 | 27555 | 1.5% |
| ADCS Clinics Intermediate Holdings, LLC (e) | Healthcare |  | S+ 6.25% (10.48%), 5/7/2027 | 124 | 123 | 123 | 0.0% |
| ADCS Clinics Intermediate Holdings, LLC (e) (n) | Healthcare |  | S+ 6.25% (10.52%), 5/7/2027 | 3864 | 3840 | 3835 | 0.2% |
| ADCS Clinics Intermediate Holdings, LLC (e) (n) | Healthcare |  | S+ 6.25% (10.48%), 5/7/2027 | 18848 | 18735 | 18707 | 1.0% |
| ADCS Clinics Intermediate Holdings, LLC (e) (h) | Healthcare |  | S+ 6.25% (10.37%), 5/7/2026 | 257 | 256 | 243 | 0.0% |
| Adelaide Borrower, LLC (e) (h) | Software/Services |  | S+ 6.75%, 3.38% PIK, 5/8/2030 |  | (64) |  | —% |
| Adelaide Borrower, LLC (e) (h) | Software/Services |  | S+ 6.75%, 3.38% PIK, 5/8/2030 |  | (77) |  | —% |
| Adelaide Borrower, LLC (e) (n) (p) | Software/Services |  | S+ 6.75% (10.75%) 3.38% PIK, 5/8/2030 | 35588 | 34995 | 35588 | 1.9% |
| American Rock Salt Company, LLC (n) | Chemicals |  | S+ 4.00% (8.46%), 6/9/2028 | 1982 | 1980 | 1475 | 0.1% |
| Amylu Borrower Sub, LLC (e) (n) | Food & Beverage |  | S+ 5.00% (9.07%), 6/10/2031 | 39534 | 39148 | 39158 | 2.1% |
| Amylu Borrower Sub, LLC (e) (h) | Food & Beverage |  | S+ 5.00%, 6/10/2031 |  | (32) | (64) | 0.0% |
| Amylu Borrower Sub, LLC (e) (h) | Food & Beverage |  | S+ 5.00% (9.07%), 6/10/2031 | 565 | 490 | 490 | 0.0% |
| Arch Global Precision, LLC (e) | Industrials |  | S+ 4.75% (8.91%), 4/1/2026 | 2290 | 2291 | 2247 | 0.1% |
| Arch Global Precision, LLC (e) (h) | Industrials |  | S+ 4.75% (8.91%), 1/2/2026 | 901 | 901 | 894 | 0.0% |
| Arch Global Precision, LLC (e) (n) (p) | Industrials |  | S+ 4.75% (8.91%), 4/1/2026 | 7269 | 7271 | 7130 | 0.4% |
| Arctic Holdco, LLC (e) (h) | Paper & Packaging |  | S+ 5.25% (9.56%), 1/31/2032 | 3251 | 3211 | 3251 | 0.2% |
| Arctic Holdco, LLC (e) (h) | Paper & Packaging |  | S+ 5.25% (9.25%), 1/31/2031 | 281 | 250 | 281 | 0.0% |
| Arctic Holdco, LLC (e) (n) (p) | Paper & Packaging |  | S+ 5.25% (9.25%), 1/31/2032 | 46038 | 45625 | 46038 | 2.5% |
| Armada Parent, Inc. (e) (n) | Industrials |  | S+ 5.25% (9.45%), 10/29/2030 | 55632 | 55359 | 55371 | 3.0% |
| Armada Parent, Inc. (e) (h) | Industrials |  | S+ 5.25% (9.41%), 10/29/2030 | 1100 | 1072 | 1069 | 0.1% |
| Armada Parent, Inc. (e) (h) | Industrials |  | S+ 5.25%, 10/29/2030 |  | (18) | (18) | 0.0% |
| Artifact Bidco, Inc. (e) (h) | Software/Services |  | S+ 4.25%, 7/28/2031 |  | (11) |  | —% |
| Artifact Bidco, Inc. (e) (h) | Software/Services |  | S+ 4.25%, 7/26/2030 |  | (15) |  | —% |
| Artifact Bidco, Inc. (e) (n) (p) | Software/Services |  | S+ 4.25% (8.25%), 7/28/2031 | 10875 | 10783 | 10875 | 0.6% |
| AuditBoard, Inc. (e) (n) | Software/Services |  | S+ 4.50% (8.50%), 7/14/2031 | 22887 | 22687 | 22887 | 1.2% |
| AuditBoard, Inc. (e) (h) | Software/Services |  | S+ 4.50%, 7/14/2031 |  | (45) |  | —% |
| AuditBoard, Inc. (e) (h) | Software/Services |  | S+ 4.50%, 7/14/2031 |  | (36) |  | —% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Aventine Holdings, LLC (e) (n) | Media/Entertainment |  | S+ 6.00% (10.10%) 3.50% PIK, 6/18/2029 | $9851 | $9791 | $9722 | 0.5% |
| Aventine Holdings, LLC (e) (n) (p) | Media/Entertainment |  | S+ 6.00% (10.10%) 3.50% PIK, 6/18/2029 | 24884 | 24731 | 24558 | 1.3% |
| Axiom Global, Inc. (e) (n) (p) | Business Services |  | S+ 4.50% (8.91%), 10/2/2028 | 46776 | 46593 | 46777 | 2.6% |
| Azurite Intermediate Holdings, Inc. (e) | Software/Services |  | S+ 6.00% (10.16%), 3/19/2031 | 9961 | 9834 | 9961 | 0.5% |
| Azurite Intermediate Holdings, Inc. (e) | Software/Services |  | S+ 6.00% (10.16%), 3/19/2031 | 22639 | 22351 | 22639 | 1.2% |
| Azurite Intermediate Holdings, Inc. (e) (h) | Software/Services |  | S+ 6.00%, 3/19/2031 |  | (42) |  | —% |
| Bayou Holdings Buyer, Inc. (e) (h) | Business Services |  | S+ 4.75%, 9/18/2031 |  | (20) | (41) | 0.0% |
| Bayou Holdings Buyer, Inc. (e) (h) | Business Services |  | S+ 4.75%, 9/18/2031 |  | (33) | (33) | 0.0% |
| Bayou Holdings Buyer, Inc. (e) (n) | Business Services |  | S+ 4.75% (8.78%), 9/18/2031 | 21356 | 21144 | 21144 | 1.1% |
| BCPE Oceandrive Buyer, Inc. (e) | Healthcare |  | 18.00% PIK, 4/30/2035 | 5373 | 5125 | 5373 | 0.3% |
| BCPE Oceandrive Buyer, Inc. (e) (h) | Healthcare |  | 18.00% PIK, 4/30/2035 |  | (80) |  | —% |
| BCPE Oceandrive Buyer, Inc. (e) (j) | Healthcare |  | S+ 6.25% (10.65%) PIK, 4/30/2035 | 5703 | 5108 | 2281 | 0.1% |
| BCPE Oceandrive Buyer, Inc. (e) (j) | Healthcare |  | S+ 6.25% (10.66%) PIK, 4/30/2035 | 2985 | 2684 | 1194 | 0.1% |
| BCPE Oceandrive Buyer, Inc. (e) (j) (p) | Healthcare |  | S+ 6.25% (10.55%) PIK, 4/30/2035 | 5876 | 5262 | 2350 | 0.1% |
| BCPE Oceandrive Buyer, Inc. (e) (j) (p) | Healthcare |  | S+ 6.25% (10.55%) PIK, 4/30/2035 | 35257 | 31603 | 14103 | 0.8% |
| Big Apple Advisory, LLC (e) (h) | Business Services |  | S+ 4.50%, 11/18/2031 |  | (100) |  | —% |
| Big Apple Advisory, LLC (e) (h) | Business Services |  | S+ 4.50%, 11/18/2031 |  | (56) |  | —% |
| Big Apple Advisory, LLC (e) (n) (p) | Business Services |  | S+ 4.50% (8.57%), 11/18/2031 | 47285 | 46884 | 47285 | 2.7% |
| Bingo Group Buyer, Inc. (e) (h) | Utilities |  | S+ 5.00% (9.20%), 7/10/2031 | 1402 | 1385 | 1402 | 0.1% |
| Bingo Group Buyer, Inc. (e) (h) | Utilities |  | S+ 5.00% (9.00%), 7/10/2031 | 20 | 13 | 20 | 0.0% |
| Bingo Group Buyer, Inc. (e) (n) (p) | Utilities |  | S+ 5.00% (9.00%), 7/10/2031 | 5423 | 5364 | 5423 | 0.3% |
| Capstone Acquisition Holdings, Inc. (e) (n) | Transportation |  | S+ 4.50% (8.92%), 11/13/2029 | 20602 | 20610 | 20602 | 1.1% |
| Capstone Acquisition Holdings, Inc. (e) (h) | Transportation |  | S+ 4.50%, 11/13/2029 |  | (1) |  | —% |
| Carr, Riggs & Ingram Capital, LLC (e) (h) | Business Services |  | S+ 4.25% (8.25%), 11/18/2031 | 1253 | 1221 | 1253 | 0.1% |
| Carr, Riggs & Ingram Capital, LLC (e) (h) | Business Services |  | S+ 4.25%, 11/18/2031 |  | (24) |  | —% |
| Carr, Riggs & Ingram Capital, LLC (e) (n) (p) | Business Services |  | S+ 4.25% (8.25%), 11/18/2031 | 11649 | 11548 | 11649 | 0.6% |
| CCI Buyer, Inc. (e) (h) | Telecom |  | S+ 5.00%, 5/13/2032 |  | (29) | (31) | 0.0% |
| CCI Buyer, Inc. (e) (n) (p) | Telecom |  | S+ 5.00% (9.00%), 5/13/2032 | 52259 | 51746 | 51736 | 2.8% |
| Center Phase Energy, LLC (e) (n) | Utilities |  | S+ 6.00% (10.12%), 6/23/2027 | 10305 | 10235 | 10305 | 0.6% |
| Center Phase Energy, LLC (e) (n) | Utilities |  | S+ 6.00% (10.12%), 6/23/2027 | 10970 | 10761 | 10970 | 0.6% |
| Cliffwater, LLC (e) (h) | Financials |  | S+ 5.00%, 4/22/2032 |  | (27) | (27) | 0.0% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Cliffwater, LLC (e) (n) (p) | Financials |  | S+ 5.00% (9.31%), 4/22/2032 | $30230 | $29939 | $29946 | 1.6% |
| Coalesce Merlin Purchaser, LLC (e) (h) | Business Services |  | S+ 5.00%, 9/10/2031 |  | (30) | (65) | 0.0% |
| Coalesce Merlin Purchaser, LLC (e) (h) | Business Services |  | S+ 5.00%, 9/10/2031 |  | (30) | (32) | 0.0% |
| Coalesce Merlin Purchaser, LLC (e) (n) (p) | Business Services |  | S+ 5.00% (9.16%), 9/10/2031 | 17459 | 17349 | 17344 | 0.9% |
| Cold Spring Brewing, Co. (e) (n) (p) | Food & Beverage |  | S+ 4.75% (8.90%), 12/10/2030 | 21853 | 21664 | 21853 | 1.2% |
| Communication Technology Intermediate, LLC (e) (n) | Business Services |  | S+ 5.50% (9.66%), 5/5/2027 | 24736 | 24673 | 24736 | 1.3% |
| Communication Technology Intermediate, LLC (e) (n) | Business Services |  | S+ 5.50% (9.66%), 5/5/2027 | 24418 | 24267 | 24418 | 1.3% |
| Communication Technology Intermediate, LLC (e) (n) | Business Services |  | S+ 5.50% (9.66%), 5/5/2027 | 2426 | 2405 | 2426 | 0.1% |
| Communication Technology Intermediate, LLC (e) (h) | Business Services |  | S+ 5.50% (9.66%), 5/5/2027 | 1188 | 1183 | 1188 | 0.1% |
| Communication Technology Intermediate, LLC (e) (n) (p) | Business Services |  | S+ 5.50% (9.66%), 5/5/2027 | 8604 | 8590 | 8604 | 0.5% |
| Consolidated Precision Products Corp. (e) (r) | Industrials |  | 10.14%, 1/1/2030 | 22420 | 22420 | 22773 | 1.2% |
| Corfin Industries, LLC (e) | Industrials |  | S+ 5.25% (9.51%), 12/27/2027 | 1550 | 1551 | 1550 | 0.1% |
| Corfin Industries, LLC (e) | Industrials |  | S+ 5.25% (9.51%), 12/27/2027 | 9436 | 9444 | 9436 | 0.5% |
| Corfin Industries, LLC (e) (n) (p) | Industrials |  | S+ 5.25% (9.51%), 12/27/2027 | 19585 | 19406 | 19585 | 1.1% |
| Corfin Industries, LLC (e) (n) (p) | Industrials |  | S+ 5.25% (9.51%), 12/27/2027 | 15851 | 15859 | 15851 | 0.9% |
| Coronis Health I, LLC (e) (h) (m) | Healthcare |  | S+ 5.50% (9.80%) 1.00% PIK, 5/1/2030 | 532 | 532 | 532 | 0.0% |
| Coronis Health I, LLC (e) (m) | Healthcare |  | S+ 7.00% (11.30%), 5/1/2031 | 4104 | 4104 | 4104 | 0.2% |
| Demakes Borrower, LLC (e) (n) | Food & Beverage |  | S+ 6.00% (10.00%), 12/12/2029 | 17622 | 17308 | 17622 | 1.0% |
| Einstein Parent, Inc. (e) (h) | Software/Services |  | S+ 6.50%, 1/22/2031 |  | (41) | (23) | 0.0% |
| Einstein Parent, Inc. (e) (n) (p) | Software/Services |  | S+ 6.50% (10.83%), 1/22/2031 | 22317 | 21916 | 22094 | 1.2% |
| Electric Power Engineers, LLC (e) (h) | Business Services |  | S+ 4.50%, 12/31/2031 |  | (59) | (118) | 0.0% |
| Electric Power Engineers, LLC (e) (h) | Business Services |  | S+ 4.50%, 12/31/2031 |  | (47) | (47) | 0.0% |
| Electric Power Engineers, LLC (e) (n) (p) | Business Services |  | S+ 4.50% (8.50%), 12/31/2031 | 27909 | 27658 | 27661 | 1.5% |
| Electro-Methods, LP (e) (h) | Industrials |  | S+ 4.75%, 2/23/2032 |  | (114) |  | —% |
| Electro-Methods, LP (e) (n) (p) | Industrials |  | S+ 4.75% (8.97%), 2/23/2032 | 34499 | 34024 | 34499 | 1.9% |
| Eliassen Group, LLC (e) (n) | Business Services |  | S+ 5.75% (9.91%), 4/14/2028 | 1347 | 1345 | 1347 | 0.1% |
| Eliassen Group, LLC (e) (n) (p) | Business Services |  | S+ 5.75% (9.75%), 4/14/2028 | 16846 | 16767 | 16846 | 0.9% |
| Faraday Buyer, LLC (e) (n) | Utilities |  | S+ 6.00% (10.00%), 10/11/2028 | 40909 | 40909 | 40909 | 2.2% |
| Faraday Buyer, LLC (e) (n) | Utilities |  | S+ 6.00% (10.00%), 10/11/2028 | 8667 | 8558 | 8667 | 0.5% |
| Faraday Buyer, LLC (e) (h) | Utilities |  | S+ 6.00%, 10/11/2028 |  | (11) |  | —% |
| FGT Purchaser, LLC (e) (n) | Consumer |  | S+ 5.50% (9.60%) 3.00% PIK, 9/13/2028 | 30961 | 30892 | 26766 | 1.5% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| FGT Purchaser, LLC (e) (h) | Consumer |  | S+ 5.50%, 3.00% PIK, 9/13/2028 | $— | $(5) | $(423) | 0.0% |
| Florida Food Products, LLC (e) (n) | Food & Beverage |  | S+ 5.00% (9.28%), 10/18/2028 | 11988 | 11867 | 9614 | 0.5% |
| FloWorks International, LLC (e) (h) | Industrials |  | S+ 4.75%, 11/26/2031 |  | (22) | (44) | 0.0% |
| FloWorks International, LLC (e) (n) (p) | Industrials |  | S+ 4.75% (8.95%), 11/26/2031 | 39465 | 39115 | 39118 | 2.2% |
| Foresight Energy Operating, LLC (e) | Energy |  | S+ 8.00% (12.10%), 6/30/2027 | 1041 | 1041 | 1041 | 0.1% |
| Galway Borrower, LLC (e) (n) | Financials |  | S+ 4.50% (8.50%), 9/29/2028 | 38209 | 38119 | 38209 | 2.1% |
| Galway Borrower, LLC (e) (h) | Financials |  | S+ 4.50% (8.49%), 9/29/2028 | 702 | 692 | 702 | 0.0% |
| Galway Borrower, LLC (e) (h) | Financials |  | S+ 4.50% (8.50%), 9/29/2028 | 730 | 712 | 730 | 0.0% |
| Groome Purchaser, LLC (e) (h) | Business Services |  | S+ 4.75%, 8/29/2031 |  | (17) | (35) | 0.0% |
| Groome Purchaser, LLC (e) (h) | Business Services |  | S+ 4.75%, 8/29/2031 |  | (26) | (52) | 0.0% |
| Groome Purchaser, LLC (e) (h) | Business Services |  | S+ 4.75%, 8/29/2031 |  | (26) | (26) | 0.0% |
| Groome Purchaser, LLC (e) (n) | Business Services |  | S+ 4.75% (8.91%), 8/29/2031 | 16523 | 16359 | 16360 | 0.9% |
| High Street Buyer, Inc. (e) (h) | Financials |  | S+ 4.50% (8.76%), 4/14/2028 | 3478 | 3344 | 3237 | 0.2% |
| Hometown Food, Co. (e) (n) (p) | Food & Beverage |  | S+ 4.50% (8.76%), 12/3/2030 | 15523 | 15373 | 15377 | 0.8% |
| Hospice Care Buyer, Inc. (e) | Healthcare |  | S+ 6.50% (10.69%), 12/9/2026 | 2138 | 2117 | 2138 | 0.1% |
| Hospice Care Buyer, Inc. (e) | Healthcare |  | S+ 6.50% (10.69%), 12/9/2026 | 4627 | 4585 | 4627 | 0.3% |
| Hospice Care Buyer, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.69%), 12/9/2026 | 3537 | 3499 | 3537 | 0.2% |
| Hospice Care Buyer, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.69%), 12/9/2026 | 24890 | 24653 | 24890 | 1.4% |
| Hospice Care Buyer, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.69%), 12/9/2026 | 8422 | 8339 | 8422 | 0.5% |
| Hospice Care Buyer, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.69%), 12/9/2026 | 6460 | 6395 | 6460 | 0.4% |
| Hospice Care Buyer, Inc. (e) (h) | Healthcare |  | S+ 6.50% (10.41%), 12/9/2026 | 1689 | 1683 | 1689 | 0.1% |
| ICAT Intermediate Holdings, LLC (e) (h) | Transportation |  | S+ 6.25%, 3/1/2029 |  | (65) | (130) | 0.0% |
| ICAT Intermediate Holdings, LLC (e) (h) | Transportation |  | S+ 6.25%, 3/1/2029 |  | (20) | (20) | 0.0% |
| ICAT Intermediate Holdings, LLC (e) (n) | Transportation |  | S+ 6.25% (10.42%), 3/1/2029 | 17350 | 17090 | 17090 | 0.9% |
| ICR Operations, LLC (e) (n) | Business Services |  | S+ 5.50% (9.65%), 11/22/2028 | 40839 | 40401 | 40839 | 2.2% |
| ICR Operations, LLC (e) (n) | Business Services |  | S+ 5.50% (9.65%), 11/22/2028 | 2219 | 2196 | 2219 | 0.1% |
| ICR Operations, LLC (e) (h) | Business Services |  | S+ 5.50% (9.92%), 11/22/2027 | 1699 | 1664 | 1699 | 0.1% |
| Ideal Tridon Holdings, Inc. (e) (h) | Industrials |  | S+ 5.00%, 6/30/2032 |  | (38) | (75) | 0.0% |
| Ideal Tridon Holdings, Inc. (e) (h) | Industrials |  | S+ 5.00%, 6/30/2032 |  | (62) | (62) | 0.0% |
| Ideal Tridon Holdings, Inc. (e) (n) (p) | Industrials |  | S+ 5.00% (9.00%), 6/30/2032 | 42374 | 41955 | 41968 | 2.3% |
| IG Investments Holdings, LLC (e) (n) | Business Services |  | S+ 5.00% (9.31%), 9/22/2028 | 26066 | 26066 | 26066 | 1.4% |
| IG Investments Holdings, LLC (e) (h) | Business Services |  | S+ 5.00%, 9/22/2028 |  | (20) |  | —% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Indigo Buyer, Inc. (e) (n) | Paper & Packaging |  | S+ 5.25% (9.56%), 5/23/2028 | $61033 | $61033 | $61033 | 3.3% |
| Indigo Buyer, Inc. (e) (h) | Paper & Packaging |  | S+ 5.25% (9.25%), 5/23/2028 | 1443 | 1374 | 1443 | 0.1% |
| Indigo Buyer, Inc. (e) (h) | Paper & Packaging |  | S+ 5.25%, 5/23/2028 |  | (25) |  | —% |
| InhabitIQ, Inc. (e) (h) | Software/Services |  | S+ 4.50%, 1/12/2032 |  | (16) | (33) | 0.0% |
| InhabitIQ, Inc. (e) (h) | Software/Services |  | S+ 4.50%, 1/12/2032 |  | (20) | (20) | 0.0% |
| InhabitIQ, Inc. (e) (n) (p) | Software/Services |  | S+ 4.50% (8.66%), 1/12/2032 | 26074 | 25963 | 25957 | 1.4% |
| Integrated Efficiency Solutions, Inc. (e) (h) (m) | Industrials |  | 7.50%, 12/31/2027 |  |  | (59) | 0.0% |
| Integrated Efficiency Solutions, Inc. (e) (m) | Industrials |  | 7.50%, 1/10/2027 | 240 | 240 | 240 | 0.0% |
| Integrated Efficiency Solutions, Inc. (e) (m) | Industrials |  | 7.50%, 12/31/2027 | 1382 | 1382 | 1246 | 0.1% |
| Integrated Global Services, Inc. (e) (h) | Industrials |  | S+ 5.00%, 3/6/2032 |  | (38) | (75) | 0.0% |
| Integrated Global Services, Inc. (e) (h) | Industrials |  | P+ 4.00% (11.25%), 3/6/2031 | 684 | 600 | 599 | 0.0% |
| Integrated Global Services, Inc. (e) (n) (p) | Industrials |  | S+ 5.00% (9.13%), 3/6/2032 | 32663 | 32193 | 32212 | 1.7% |
| International Cruise & Excursion Gallery, Inc. (e) (p) | Business Services |  | S+ 6.00% (10.00%), 12/29/2028 | 1358 | 1358 | 1358 | 0.1% |
| IQN Holding Corp. (e) | Software/Services |  | S+ 5.75% (10.05%) 3.13% PIK, 5/2/2029 | 5744 | 5744 | 5744 | 0.3% |
| IQN Holding Corp. (e) (h) | Software/Services |  | S+ 5.25% (9.25%), 5/2/2028 | 735 | 732 | 735 | 0.0% |
| IQN Holding Corp. (e) (n) (p) | Software/Services |  | S+ 5.75% (9.75%) 3.13% PIK, 5/2/2029 | 17235 | 17153 | 17235 | 0.9% |
| Knowledge Pro Buyer, Inc. (e) (n) | Business Services |  | S+ 5.00% (9.26%), 12/10/2027 | 450 | 447 | 450 | 0.0% |
| Knowledge Pro Buyer, Inc. (e) (h) | Business Services |  | S+ 5.00%, 12/10/2027 |  | (24) |  | —% |
| Knowledge Pro Buyer, Inc. (e) (h) (n) | Business Services |  | S+ 5.00% (9.26%), 12/10/2027 | 25875 | 25662 | 25875 | 1.4% |
| Knowledge Pro Buyer, Inc. (e) (n) (p) | Business Services |  | S+ 5.00% (9.26%), 12/10/2027 | 34682 | 34605 | 34682 | 1.9% |
| Labrie Environmental Group, LLC (a) (e) | Industrials |  | S+ 5.50% (9.76%), 4/23/2027 | 21723 | 21403 | 21723 | 1.2% |
| Lakeland Tours, LLC (e) (j) (p) | Education |  | 8.00%, 9/25/2027 | 6118 | 4518 | 1414 | 0.1% |
| Lakeland Tours, LLC (e) (j) (n) (p) | Education |  | 20.00% PIK, 9/25/2027 | 50 | 48 | 25 | 0.0% |
| LaserShip, Inc. | Transportation |  | S+ 8.50% (12.76%) 7.00% PIK, 8/10/2029 | 2837 | 2837 | 818 | 0.0% |
| Last Dance Intermediate II, LLC (e) (h) | Telecom |  | S+ 5.00% (9.16%), 3/31/2031 | 1882 | 1781 | 1702 | 0.1% |
| Last Dance Intermediate II, LLC (e) (h) | Telecom |  | S+ 5.00% (9.16%), 3/31/2031 | 1980 | 1935 | 1934 | 0.1% |
| Last Dance Intermediate II, LLC (e) (n) (p) | Telecom |  | S+ 5.00% (9.16%), 3/31/2031 | 19054 | 18870 | 18875 | 1.0% |
| Last Dance Intermediate II, LLC (e) (n) (p) | Telecom |  | S+ 5.00% (9.16%), 3/31/2031 | 19312 | 19038 | 19048 | 1.0% |
| Lighthouse Intelligence, Ltd. (a) (e) | Software/Services |  | S+ 5.00% (9.16%) 2.50% PIK, 4/10/2030 | 22571 | 22261 | 22264 | 1.2% |
| Lighthouse Intelligence, Ltd. (a) (e) (h) | Software/Services |  | S+ 5.00%, 2.50% PIK, 4/10/2030 |  | (82) | (163) | 0.0% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Lighthouse Intelligence, Ltd. (a) (e) (h) | Software/Services |  | S+ 5.00%, 2.50% PIK, 4/10/2030 | $— | $(116) | $(117) | 0.0% |
| LSF12 Donnelly Bidco, LLC (e) (n) | Industrials |  | S+ 6.50% (10.66%), 10/2/2029 | 18787 | 18462 | 18787 | 1.0% |
| Mandrake Bidco, Inc. (e) (h) | Industrials |  | S+ 4.50%, 8/20/2030 |  | (85) |  | —% |
| Mandrake Bidco, Inc. (e) (n) (p) | Industrials |  | S+ 4.50% (8.81%), 8/20/2031 | 59345 | 58833 | 59345 | 3.3% |
| Manna Pro Products, LLC (e) | Consumer |  | S+ 6.50% (10.92%) 3.50% PIK, 12/10/2029 | 3973 | 3905 | 3341 | 0.2% |
| Manna Pro Products, LLC (e) (h) | Consumer |  | S+ 6.50%, 3.50% PIK, 12/10/2029 |  | (29) | (430) | 0.0% |
| Manna Pro Products, LLC (e) (p) | Consumer |  | S+ 6.50% (10.92%) 3.50% PIK, 12/10/2029 | 1894 | 1861 | 1593 | 0.1% |
| Manna Pro Products, LLC (e) (p) | Consumer |  | S+ 6.50% (10.92%) 3.50% PIK, 12/10/2029 | 6812 | 6695 | 5729 | 0.3% |
| Manna Pro Products, LLC (e) (p) | Consumer |  | S+ 6.50% (10.92%) 3.50% PIK, 12/10/2029 | 24024 | 23611 | 20204 | 1.1% |
| McDonald Worley, P.C. (e) (j) | Business Services |  | 26.00% PIK, 12/31/2025 | 26535 | 13266 | 13737 | 0.7% |
| Medical Depot Holdings, Inc. (e) | Healthcare |  | S+ 10.00% (14.40%) 9.00% PIK, 6/1/2026 | 4257 | 4257 | 4257 | 0.2% |
| Medical Depot Holdings, Inc. (e) (n) (p) | Healthcare |  | S+ 9.50% (13.90%) 4.00% PIK, 6/1/2026 | 21496 | 21371 | 16982 | 0.9% |
| Medical Management Resource Group, LLC (e) (n) | Healthcare |  | S+ 5.75% (9.85%), 9/30/2027 | 9333 | 9266 | 9207 | 0.5% |
| Medical Management Resource Group, LLC (e) (n) | Healthcare |  | S+ 5.75% (9.85%), 9/30/2027 | 22596 | 22432 | 22291 | 1.2% |
| Medical Management Resource Group, LLC (e) (h) | Healthcare |  | S+ 5.75% (9.84%), 9/30/2026 | 1119 | 1113 | 1091 | 0.1% |
| Megavolt Borrower, LLC (e) (n) (p) | Utilities |  | S+ 4.75% (8.75%), 2/13/2032 | 37082 | 36402 | 37082 | 2.0% |
| MGTF Radio Company, LLC (e) (j) (l) | Media/Entertainment |  | S+ 6.00% (10.30%), 12/31/2025 | 45021 | 45020 | 12000 | 0.7% |
| Midwest Can Company, LLC (e) (n) (p) | Paper & Packaging |  | S+ 6.00% (10.20%), 3/2/2026 | 27902 | 27902 | 27902 | 1.5% |
| Mirra-Primeaccess Holdings, LLC (e) | Healthcare |  | S+ 6.50% (11.07%), 7/29/2026 | 68266 | 68184 | 61439 | 3.3% |
| Mirra-Primeaccess Holdings, LLC (e) (h) | Healthcare |  | S+ 6.50% (11.07%), 7/29/2026 | 8442 | 8433 | 7316 | 0.4% |
| MRI Software, LLC (e) | Software/Services |  | S+ 4.75% (8.75%), 2/10/2027 | 2186 | 2186 | 2186 | 0.1% |
| MRI Software, LLC (e) | Software/Services |  | S+ 4.75% (8.75%), 2/10/2027 | 6751 | 6725 | 6751 | 0.4% |
| Muth Mirror Systems, LLC (e) (j) | Technology |  | 11.00%, 4.00% PIK, 3/31/2027 | 1395 | 1250 | 837 | 0.0% |
| Muth Mirror Systems, LLC (e) (j) | Technology |  | 11.00%, 4.00% PIK, 3/31/2027 | 15000 | 14266 | 9000 | 0.5% |
| MWH Intermediate II, LLC (e) (h) | Financials |  | S+ 4.50% (8.66%), 8/27/2032 | 1159 | 1121 | 1092 | 0.1% |
| MWH Intermediate II, LLC (e) (h) | Financials |  | S+ 4.50%, 8/29/2031 |  | (13) | (13) | 0.0% |
| MWH Intermediate II, LLC (e) (n) | Financials |  | S+ 4.50% (8.50%), 8/27/2032 | 15393 | 15278 | 15279 | 0.8% |
| Norvax, LLC (e) | Business Services |  | S+ 5.50% (9.75%), 8/5/2029 | 228 | 228 | 228 | 0.0% |
| Norvax, LLC (e) | Business Services |  | S+ 7.50% (12.26%), 8/5/2029 | 363 | 363 | 346 | 0.0% |
| Odessa Technologies, Inc. (e) (n) | Software/Services |  | S+ 5.50% (9.60%), 10/19/2027 | 20288 | 20246 | 20288 | 1.1% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Odessa Technologies, Inc. (e) (h) | Software/Services |  | S+ 5.50%, 10/19/2027 | $— | $(12) | $— | —% |
| ORG GC Holdings, LLC (e) (m) | Business Services |  | S+ 6.50% (10.76%), 11/29/2026 | 10111 | 10123 | 10111 | 0.5% |
| PetVet Care Centers, LLC (e) (h) | Healthcare |  | S+ 6.00%, 11/15/2030 |  | (8) | (194) | 0.0% |
| PetVet Care Centers, LLC (e) (h) | Healthcare |  | S+ 6.00%, 11/15/2029 |  | (14) | (194) | 0.0% |
| PetVet Care Centers, LLC (e) (n) (p) | Healthcare |  | S+ 6.00% (10.16%), 11/15/2030 | 30373 | 29915 | 28915 | 1.6% |
| Pie Buyer, Inc. (e) | Food & Beverage |  | S+ 5.50% (9.92%), 4/6/2026 | 2581 | 2580 | 2413 | 0.1% |
| Pie Buyer, Inc. (e) (n) | Food & Beverage |  | S+ 5.50% (9.92%), 4/5/2027 | 2275 | 2273 | 2127 | 0.1% |
| Pie Buyer, Inc. (e) (n) | Food & Beverage |  | S+ 5.50% (9.92%), 4/5/2027 | 8674 | 8657 | 8110 | 0.4% |
| Pie Buyer, Inc. (e) (n) (p) | Food & Beverage |  | S+ 5.50% (9.95%) 2.50% PIK, 4/5/2027 | 2963 | 2957 | 2771 | 0.2% |
| Pie Buyer, Inc. (e) (n) (p) | Food & Beverage |  | S+ 5.50% (9.92%) 2.50% PIK, 4/5/2027 | 40079 | 39990 | 37474 | 2.0% |
| PlayPower, Inc. (e) (h) | Industrials |  | S+ 5.25%, 8/28/2030 |  | (32) |  | —% |
| PlayPower, Inc. (e) (n) (p) | Industrials |  | S+ 5.25% (9.25%), 8/28/2030 | 2902 | 2876 | 2902 | 0.2% |
| PlayPower, Inc. (e) (n) (p) | Industrials |  | S+ 5.25% (9.25%), 8/28/2030 | 17131 | 16912 | 17131 | 0.9% |
| Pluralsight, LLC (e) | Software/Services |  | S+ 4.50% (8.70%) 1.50% PIK, 8/22/2029 | 4593 | 4593 | 4593 | 0.2% |
| Pluralsight, LLC (e) | Software/Services |  | S+ 7.50% (11.70%) PIK, 8/22/2029 | 7685 | 7685 | 7685 | 0.4% |
| Pluralsight, LLC (e) | Software/Services |  | S+ 4.50% (8.70%) 1.50% PIK, 8/22/2029 | 2333 | 2333 | 2333 | 0.1% |
| Pluto Acquisition I, Inc. | Healthcare |  | S+ 5.50% (9.50%), 6/20/2028 | 3304 | 3304 | 3296 | 0.2% |
| Questex, Inc. (e) (h) | Media/Entertainment |  | S+ 5.50% (9.70%), 5/15/2029 | 775 | 747 | 743 | 0.0% |
| Questex, Inc. (e) (n) (p) | Media/Entertainment |  | S+ 5.50% (9.70%), 5/15/2029 | 14987 | 14750 | 14740 | 0.8% |
| Reagent Chemical and Research, LLC (e) (h) | Chemicals |  | S+ 5.25%, 4/30/2030 |  | (114) |  | —% |
| Reagent Chemical and Research, LLC (e) (n) (p) | Chemicals |  | S+ 5.25% (9.41%), 4/30/2031 | 46061 | 45314 | 46061 | 2.5% |
| Relativity Oda, LLC (e) (n) | Software/Services |  | S+ 4.50% (8.66%), 5/12/2029 | 7717 | 7695 | 7717 | 0.4% |
| REP TEC Intermediate Holdings, Inc. (e) (n) (p) | Software/Services |  | S+ 5.75% (9.75%), 12/1/2027 | 24295 | 24288 | 24295 | 1.3% |
| Rialto Management Group, LLC (e) (h) | Financials |  | S+ 5.00%, 12/5/2030 |  | (6) |  | —% |
| Rialto Management Group, LLC (e) (n) (p) | Financials |  | S+ 5.00% (9.16%), 12/5/2030 | 20178 | 20001 | 20178 | 1.1% |
| Roadsafe Holdings, Inc. (e) (n) | Industrials |  | S+ 5.75% (9.89%), 10/19/2027 | 7305 | 7312 | 7305 | 0.4% |
| Roadsafe Holdings, Inc. (e) (n) | Industrials |  | S+ 5.75% (9.89%), 10/19/2027 | 6797 | 6774 | 6797 | 0.4% |
| Roadsafe Holdings, Inc. (e) (n) (p) | Industrials |  | P+ 4.75% (12.00%), 10/19/2027 | 1078 | 1063 | 1078 | 0.1% |
| Roadsafe Holdings, Inc. (e) (n) (p) | Industrials |  | S+ 5.75% (10.12%), 10/19/2027 | 11962 | 11932 | 11962 | 0.6% |
| Saab Purchaser, Inc. (e) (h) | Software/Services |  | S+ 4.75%, 11/12/2031 |  | (86) | (172) | 0.0% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Saab Purchaser, Inc. (e) (h) | Software/Services |  | S+ 4.75%, 11/12/2031 | $— | $(23) | $(23) | 0.0% |
| Saab Purchaser, Inc. (e) (n) | Software/Services |  | S+ 4.75% (8.75%), 11/12/2031 | 17877 | 17699 | 17699 | 1.0% |
| Saturn SHC Buyer Holdings, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.96%), 11/18/2027 | 12993 | 12871 | 12343 | 0.7% |
| Saturn SHC Buyer Holdings, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.96%), 11/18/2027 | 37166 | 37073 | 35309 | 1.9% |
| Saturn SHC Buyer Holdings, Inc. (e) (h) | Healthcare |  | S+ 6.50%, 11/18/2027 |  | (29) | (645) | 0.0% |
| Saturn Sound Bidco, Ltd. (a) (e) (h) | Business Services |  | S+ 5.25%, 12/3/2031 |  | (20) | (40) | 0.0% |
| Saturn Sound Bidco, Ltd. (a) (e) (n) (p) | Business Services |  | S+ 5.25% (9.52%), 12/3/2031 | 24800 | 24583 | 24581 | 1.3% |
| SCIH Salt Holdings, Inc. (e) (h) | Industrials |  | S+ 3.50%, 12/15/2026 |  | (2) | (15) | 0.0% |
| Sherlock Buyer Corp. (e) (h) | Business Services |  | S+ 5.75%, 12/8/2027 |  | (5) |  | —% |
| Sherlock Buyer Corp. (e) (n) (p) | Business Services |  | S+ 5.75% (9.85%), 12/8/2028 | 15597 | 15547 | 15597 | 0.8% |
| Simplifi Holdings, Inc. (e) (n) | Media/Entertainment |  | S+ 5.25% (9.51%), 12/29/2028 | 49653 | 49250 | 49653 | 2.8% |
| Simplifi Holdings, Inc. (e) (h) | Media/Entertainment |  | S+ 5.25% (9.51%), 6/30/2028 | 1788 | 1778 | 1788 | 0.1% |
| SitusAMC Holdings Corp. (e) (n) (p) | Financials |  | S+ 5.50% (9.50%), 5/14/2031 | 52260 | 52079 | 52014 | 2.8% |
| St. Croix Hospice Acquisition Corp. (e) | Healthcare |  | S+ 5.25% (9.51%), 10/30/2026 | 2731 | 2733 | 2731 | 0.1% |
| St. Croix Hospice Acquisition Corp. (e) (n) | Healthcare |  | S+ 5.25% (9.51%), 10/30/2026 | 18791 | 18727 | 18791 | 1.0% |
| St. Croix Hospice Acquisition Corp. (e) (n) (p) | Healthcare |  | S+ 5.25% (9.51%), 10/30/2026 | 24707 | 24727 | 24707 | 1.3% |
| Striper Buyer, LLC (e) (n) | Paper & Packaging |  | S+ 5.50% (9.76%), 12/30/2026 | 16695 | 16678 | 16695 | 0.9% |
| SunMed Group Holdings, LLC (e) (n) | Healthcare |  | S+ 5.50% (9.91%), 6/16/2028 | 12470 | 12367 | 12470 | 0.7% |
| SunMed Group Holdings, LLC (e) (h) | Healthcare |  | S+ 5.50%, 6/16/2027 |  | (1) |  | —% |
| Tax Defense Network, LLC (e) (j) | Consumer |  | P+ 6.00% (13.25%) PIK, 3/31/2023 | 61222 | 927 |  | —% |
| Tax Defense Network, LLC (e) (j) | Consumer |  | P+ 6.00% (13.25%) PIK, 3/31/2023 | 10868 | 164 |  | —% |
| Tax Defense Network, LLC (e) (j) | Consumer |  | 12.00% PIK, 3/31/2023 | 5843 | 4742 | 5843 | 0.3% |
| TEI Intermediate, LLC (e) (h) | Business Services |  | S+ 4.75% (8.82%), 12/15/2031 | 439 | 396 | 439 | 0.0% |
| TEI Intermediate, LLC (e) (h) | Business Services |  | S+ 4.75% (9.07%), 12/15/2031 | 621 | 615 | 621 | 0.0% |
| TEI Intermediate, LLC (e) (n) (p) | Business Services |  | S+ 4.75% (8.75%), 12/15/2031 | 22847 | 22836 | 22847 | 1.2% |
| The NPD Group, LP (e) (n) | Business Services |  | S+ 4.50% (8.82%), 12/1/2029 | 52102 | 51584 | 52103 | 2.8% |
| The NPD Group, LP (e) (h) | Business Services |  | S+ 4.50%, 12/1/2028 |  | (20) |  | —% |
| Therapy Brands Holdings, LLC (e) (n) | Healthcare |  | S+ 4.00% (8.43%), 5/18/2028 | 5967 | 5966 | 4827 | 0.3% |
| Tivity Health, Inc. (e) (n) | Healthcare |  | S+ 5.00% (9.16%), 6/28/2029 | 24352 | 24075 | 24352 | 1.3% |
| Triple Lift, Inc. (e) (h) | Software/Services |  | S+ 5.75%, 5/5/2028 |  | (41) | (282) | 0.0% |
| Triple Lift, Inc. (e) (n) (p) | Software/Services |  | S+ 5.75% (9.90%), 5/5/2028 | 39075 | 38291 | 36731 | 2.0% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Trystar, LLC (e) (h) | Utilities |  | S+ 4.25% (8.29%), 8/6/2031 | $2934 | $2866 | $2934 | 0.2% |
| Trystar, LLC (e) (h) | Utilities |  | S+ 4.25%, 8/6/2031 |  | (53) |  | —% |
| Trystar, LLC (e) (n) (p) | Utilities |  | S+ 4.25% (8.56%), 8/6/2031 | 10390 | 10302 | 10390 | 0.6% |
| Trystar, LLC (e) (n) (p) | Utilities |  | S+ 4.25% (8.56%), 8/6/2031 | 24611 | 24397 | 24611 | 1.3% |
| Urban One, Inc. (b) | Media/Entertainment | 1/24/2024 | 7.38%, 2/1/2028 | 1561 | 1431 | 810 | 0.0% |
| US Oral Surgery Management Holdco, LLC (e) | Healthcare |  | S+ 5.25% (9.55%), 11/20/2028 | 5050 | 5028 | 5050 | 0.3% |
| US Oral Surgery Management Holdco, LLC (e) (n) | Healthcare |  | S+ 5.25% (9.66%), 11/20/2028 | 6997 | 6957 | 6997 | 0.4% |
| US Oral Surgery Management Holdco, LLC (e) (n) | Healthcare |  | S+ 5.25% (9.52%), 11/20/2028 | 6098 | 6076 | 6098 | 0.3% |
| US Oral Surgery Management Holdco, LLC (e) (n) | Healthcare |  | S+ 5.25% (9.55%), 11/20/2028 | 17668 | 17545 | 17668 | 1.0% |
| US Oral Surgery Management Holdco, LLC (e) (h) | Healthcare |  | S+ 5.25%, 11/20/2028 |  | (4) |  | —% |
| US Salt Investors, LLC (e) (n) | Chemicals |  | S+ 5.25% (9.40%), 7/19/2028 | 25729 | 25451 | 25729 | 1.4% |
| US Salt Investors, LLC (e) (h) | Chemicals |  | S+ 5.25%, 7/20/2026 |  | (3) |  | —% |
| Varicent Intermediate Holdings Corp. (e) (h) | Software/Services |  | S+ 5.75%, 3.13% PIK, 8/23/2031 |  | (28) | (30) | 0.0% |
| Varicent Intermediate Holdings Corp. (e) (h) | Software/Services |  | S+ 5.75%, 3.13% PIK, 8/23/2031 |  | (31) | (22) | 0.0% |
| Varicent Intermediate Holdings Corp. (e) (n) (p) | Software/Services |  | S+ 5.75% (9.75%) 3.13% PIK, 8/23/2031 | 20943 | 20693 | 20756 | 1.1% |
| Victors CCC Buyer, LLC (e) | Business Services |  | S+ 4.75% (8.97%), 6/1/2029 | 1555 | 1539 | 1555 | 0.1% |
| Victors CCC Buyer, LLC (e) (n) | Business Services |  | S+ 4.75% (8.91%), 6/1/2029 | 23516 | 23244 | 23516 | 1.3% |
| Victors CCC Buyer, LLC (e) (h) | Business Services |  | S+ 4.75%, 6/1/2029 |  | (14) |  | —% |
| West Coast Dental Services, Inc. (e) (n) | Healthcare |  | S+ 5.75% (10.22%), 7/1/2028 | 27944 | 27598 | 27525 | 1.5% |
| West Coast Dental Services, Inc. (e) (n) | Healthcare |  | S+ 5.75% (9.90%), 7/1/2028 | 1669 | 1645 | 1644 | 0.1% |
| West Coast Dental Services, Inc. (e) (h) | Healthcare |  | S+ 5.75% (9.93%), 7/1/2028 | 3630 | 3592 | 3575 | 0.2% |
| Westwood Professional Services, Inc. (e) (h) | Business Services |  | S+ 4.50% (8.50%), 9/19/2031 | 4442 | 4364 | 4442 | 0.2% |
| Westwood Professional Services, Inc. (e) (h) | Business Services |  | S+ 4.50%, 9/19/2031 |  | (58) |  | —% |
| Westwood Professional Services, Inc. (e) (n) (p) | Business Services |  | S+ 4.50% (8.50%), 9/19/2031 | 44962 | 44580 | 44962 | 2.5% |
| Wharf Street Ratings Acquisition, LLC (e) (h) | Business Services |  | S+ 4.75%, 9/16/2032 |  | (14) | (29) | 0.0% |
| Wharf Street Ratings Acquisition, LLC (e) (h) | Business Services |  | S+ 4.75%, 9/16/2032 |  | (29) | (29) | 0.0% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Wharf Street Ratings Acquisition, LLC (e) (n) | Business Services |  | S+ 4.75% (8.91%), 9/16/2032 | $25797 | $25541 | $25541 | 1.4% |
| WHCG Purchaser III, Inc. (e) | Healthcare |  | S+ 6.50% (10.50%) 3.25% PIK, 6/29/2029 | 23772 | 23772 | 23772 | 1.3% |
| WIN Holdings III Corp. (e) (n) | Consumer |  | S+ 5.00% (9.26%), 7/16/2028 | 41683 | 41587 | 41683 | 2.3% |
| WIN Holdings III Corp. (e) (n) | Consumer |  | S+ 5.00% (9.24%), 7/16/2028 | 9940 | 9789 | 9940 | 0.5% |
| WIN Holdings III Corp. (e) (h) | Consumer |  | S+ 5.00% (9.26%), 1/16/2028 | 1986 | 1971 | 1986 | 0.1% |
| WIN Holdings III Corp. (e) (n) | Consumer |  | S+ 5.00% (9.25%), 7/16/2028 | 20306 | 20107 | 20306 | 1.1% |
| Zendesk, Inc. (e) (n) | Software/Services |  | S+ 5.00% (9.00%), 11/22/2028 | 65044 | 64597 | 65044 | 3.5% |
| Zendesk, Inc. (e) (h) | Software/Services |  | S+ 5.00% (9.00%), 11/22/2028 | 4997 | 4950 | 4997 | 0.3% |
| **Subtotal Senior Secured First Lien Debt** |  |  |  |  | $3223667 | $3131414 | 169.9% |
| **Senior Secured Second Lien Debt - 7.5% (d)** |  |  |  |  |  |  |  |
| Alera Group, Inc. (n) (p) | Financials |  | S+ 5.50% (9.66%), 5/30/2033 | $22191 | $22080 | $22788 | 1.2% |
| American Rock Salt Company, LLC (e) (n) | Chemicals |  | S+ 7.25% (11.71%), 6/11/2029 | 6010 | 5968 | 4855 | 0.3% |
| Aruba Investments Holdings, LLC (e) (p) | Chemicals |  | S+ 7.75% (12.01%), 11/24/2028 | 3759 | 3652 | 3604 | 0.2% |
| Corelogic, Inc. (n) | Business Services |  | S+ 6.50% (10.78%), 6/4/2029 | 9272 | 8733 | 9200 | 0.5% |
| Coronis Health I, LLC (e) (m) | Healthcare |  | 5.00% PIK, 5/1/2032 | 2716 | 2716 | 2716 | 0.1% |
| Edelman Financial Center, LLC (n) | Financials |  | S+ 5.25% (9.41%), 10/6/2028 | 9500 | 9483 | 9503 | 0.5% |
| Integrated Efficiency Solutions, Inc. (e) (j) (m) | Industrials |  | 10.00% PIK, 12/31/2027 | 2090 | 1075 |  | —% |
| ORG GC Holdings, LLC (e) (j) (m) | Business Services |  | 18.00% PIK, 11/29/2027 | 6717 | 6226 | 4111 | 0.2% |
| Pluto Acquisition I, Inc. (e) (n) | Healthcare |  | S+ 9.75% (13.82%) PIK, 12/20/2028 | 38855 | 33877 | 31084 | 1.8% |
| Therapy Brands Holdings, LLC (e) (n) | Healthcare |  | S+ 6.75% (11.03%), 5/18/2029 | 6601 | 6592 | 4601 | 0.2% |
| Victory Buyer, LLC (e) (n) | Industrials |  | S+ 7.00% (11.28%), 11/19/2029 | 45990 | 44165 | 45369 | 2.5% |
| **Subtotal Senior Secured Second Lien Debt** |  |  |  |  | $144567 | $137831 | 7.5% |
| **Subordinated Debt - 12.5% (d)** |  |  |  |  |  |  |  |
| Aventine Holdings, LLC (e) (n) | Media/Entertainment |  | 10.25% PIK, 12/22/2030 | $46320 | $46016 | $39455 | 2.1% |
| Kahala Aviation, LLC (e) (l) | Transportation |  | 13.50%, 8/31/2031 | 30486 | 30482 | 30486 | 1.7% |
| ORG GC Holdings, LLC (e) (m) (r) | Business Services |  | 15.00% PIK, 11/29/2031 | 12540 |  |  | —% |
| Post Road Equipment Finance, LLC (c) (e) (h) (l) | Financials |  | S+ 7.75%, 12/31/2028 |  | (58) |  | —% |
| Post Road Equipment Finance, LLC (c) (e) (h) (l) | Financials |  | S+ 7.75% (12.07%), 12/31/2028 | 34000 | 33995 | 34000 | 1.8% |
| Post Road Equipment Finance, LLC (c) (e) (l) | Financials |  | S+ 7.75% (12.07%), 12/31/2028 | 62600 | 62618 | 62600 | 3.4% |
| Siena Capital Finance, LLC (e) (l) | Financials |  | 12.50%, 4/25/2028 | 54500 | 54537 | 54500 | 3.0% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Smile Brands, Inc. (e) | Healthcare |  | 14.50% PIK, 10/12/2028 | $60 | $60 | $17 | 0.0% |
| WHCG Purchaser III, Inc. (e) (j) | Healthcare |  | 10.00% PIK, 6/30/2030 | 19914 | 8388 | 9408 | 0.5% |
| **Subtotal Subordinated Debt** |  |  |  |  | $236038 | $230466 | 12.5% |
| **Collateralized Securities - Debt Investments - 0.2% (d)** |  |  |  |  |  |  |  |
| NewStar Arlington Senior Loan Program, LLC 14-1A FR (a) (b) (e) (m) | Diversified Investment Vehicles | 1/24/2024 | S+ 11.00% (15.58%), 4/25/2031 | $4750 | $4241 | $4409 | 0.2% |
| Whitehorse, Ltd. 14-1A E (a) (b) (e) | Diversified Investment Vehicles | 1/24/2024 | S+ 4.55% (9.11%), 5/1/2026 | 232 | 222 | 76 | 0.0% |
| **Sub Total Collateralized Securities - Debt Investments** |  |  |  |  | $4463 | $4485 | 0.2% |
| **Collateralized Securities - Equity Investments - 0.1% (d) (t)** |  |  |  |  |  |  |  |
| NewStar Arlington Senior Loan Program, LLC 14-1A SUB (a) (b) (e) (m) (s) | Diversified Investment Vehicles | 1/24/2024 | 0.00%, 4/25/2031 | $31603 | $3163 | $808 | 0.1% |
| Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB (a) (b) (e) (m) (s) | Diversified Investment Vehicles | 1/24/2024 | 0.00%, 1/20/2027 | 31575 |  | 512 | 0.0% |
| **Sub Total Collateralized Securities - Equity Investments** |  |  |  |  | $3163 | $1320 | 0.1% |
| **Equity/Other - 31.2% (d) (f)** |  |  |  |  |  |  |  |
| Black Mountain Sand, LLC (b) (e) (g) (r) | Energy | 7/1/2025 |  | 55436 | $2170 | $1304 | 0.1% |
| Center Phase Energy, LLC (b) (e) (q) | Utilities | 8/22/2025 |  | 270 | 446 | 636 | 0.0% |
| Center Phase Energy, LLC (b) (e) (q) | Utilities | 6/23/2022 |  | 1680 | 1680 | 2386 | 0.1% |
| Cirque Du Soleil Holding USA Newco, Inc. (a) (b) (g) | Media/Entertainment | 1/24/2024 |  | 539708 | 5703 | 4891 | 0.3% |
| Cirque Du Soleil Holding USA Newco, Inc. (a) (b) (g) | Media/Entertainment | 1/24/2024 |  | 874000 | 2519 | 1675 | 0.1% |
| Clover Technologies Group, LLC (b) (e) (g) | Industrials | 1/24/2024 |  | 2753 | 341 |  | —% |
| Clover Technologies Group, LLC (b) (e) (g) | Industrials | 1/24/2024 |  | 180274 |  |  | —% |
| Cornerstone Chemical, Co. (b) (e) (g) | Chemicals | 1/24/2024 |  | 327378 | 11626 | 3107 | 0.2% |
| Coronis Health I, LLC (b) (e) (g) (m) | Healthcare | 5/1/2025 |  | 5319 | 4900 | 4900 | 0.3% |
| CRS-SPV, Inc. (b) (e) (g) (m) | Industrials | 1/24/2024 |  | 246 | 1561 | 2008 | 0.1% |
| Danish CRJ, Ltd. (a) (b) (e) (g) (l) (u) | Transportation | 1/24/2024 |  | 5002 |  |  | —% |
| Dyno Acquiror, Inc. (b) (e) (g) | Consumer | 1/24/2024 |  | 134102 | 21 | 21 | 0.0% |
| FBLC Senior Loan Fund, LLC (b) (c) (e) (l) | Diversified Investment Vehicles | 1/24/2024 |  | 304934 | 305270 | 304934 | 16.5% |
| First Eagle Greenway Fund II, LLC (a) (b) (g) (m) | Diversified Investment Vehicles | 1/24/2024 |  | 5329 | 375 | 257 | 0.0% |
| Foresight Energy Operating, LLC (b) (e) (g) (r) | Energy | 1/24/2024 |  | 158093 | 3063 | 876 | 0.0% |
| GoHealth, Inc. (g) (r) | Business Services |  |  | 3131 |  | 15 | 0.0% |
| Gordian Medical, Inc. (b) (e) (n) | Healthcare | 5/17/2024 |  | 166787 | 2997 | 2944 | 0.2% |
| Gordian Medical, Inc. (b) (e) (g) | Healthcare | 5/17/2024 |  | 157787 |  |  | —% |
| Higginbotham Insurance Agency, Inc. (b) (e) | Financials | 12/10/2024 | 10.50%, 11/25/2028 | 10199 | 10046 | 10046 | 0.5% |
| Integrated Efficiency Solutions, Inc. (b) (e) (g) (m) (r) | Industrials | 1/24/2024 |  | 57427 |  |  | —% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Integrated Efficiency Solutions, Inc. (b) (e) (g) (m) (r) | Industrials | 1/24/2024 |  | 55991 | $— | $— | —% |
| Internap Corp. (b) (e) (g) (n) | Business Services | 1/24/2024 |  | 1596606 | 1599 |  | —% |
| International Cruise & Excursion Gallery, Inc. (b) (e) (g) (p) | Business Services | 12/31/2024 |  | 179900 |  |  | —% |
| Kahala Aviation, LLC (b) (e) (g) (l) (v) (w) | Transportation | 10/2/2024 |  | 9745276 | 10359 | 10330 | 0.6% |
| Kahala US OpCo, LLC (a) (b) (e) (g) (l) (v) | Transportation | 1/24/2024 |  | 8869744 |  |  | —% |
| McDonald Worley, P.C. (b) (e) (g) | Business Services | 1/24/2024 |  | 20167 | 3118 | 2335 | 0.1% |
| MCS Acquisition Corp. (b) (e) (g) | Business Services | 1/24/2024 |  | 31521 | 748 | 747 | 0.0% |
| MCS Acquisition Corp. (b) (e) (g) | Business Services | 1/24/2024 |  | 324541 | 325 | 325 | 0.0% |
| MGTF Holdco, LLC (b) (e) (g) (l) (r) | Media/Entertainment | 1/24/2024 |  | 582300 |  |  | —% |
| Motor Vehicle Software Corp. (b) (e) (g) (x) | Business Services | 1/24/2024 |  | 223503 | 349 | 979 | 0.1% |
| Muth Mirror Systems, LLC (b) (e) (g) (r) | Technology | 1/24/2024 |  | 153038 |  |  | —% |
| Muth Mirror Systems, LLC (b) (e) (g) (r) | Technology | 1/24/2024 |  | 22819 |  |  | —% |
| ORG GC Holdings, LLC (b) (e) (g) (m) (r) | Business Services | 1/24/2024 |  | 1771 |  |  | —% |
| PennantPark Credit Opportunities Fund II, LP (a) (b) (g) (m) | Diversified Investment Vehicles | 1/24/2024 |  | 8739 | 962 | 499 | 0.0% |
| Pluralsight, LLC (b) (e) (g) | Software/Services | 8/22/2024 |  | 2267044 | 5986 | 4829 | 0.3% |
| Point Broadband Acquisition, LLC (b) (e) (g) (q) (r) | Telecom | 10/1/2021 |  | 3710315 | 4941 | 4935 | 0.3% |
| Point Broadband Acquisition, LLC (b) (e) (g) (q) (r) | Telecom | 10/29/2024 |  | 164759 |  | 124 | 0.0% |
| Post Road Equipment Finance, LLC (b) (c) (e) (l) (q) (r) | Financials | 12/30/2021 |  | 199972 | 128429 | 128252 | 7.0% |
| Resolute Investment Managers, Inc. (b) (e) (g) | Financials | 1/24/2024 |  | 61958 | 2026 | 2022 | 0.1% |
| RMP Group, Inc. (b) (e) (g) (r) | Financials | 1/24/2024 |  | 223 | 333 | 246 | 0.0% |
| Siena Capital Finance, LLC (b) (e) (l) | Financials | 1/24/2024 |  | 41789400 | 77437 | 77728 | 4.2% |
| Skillsoft Corp. (g) | Technology |  |  | 12435 | 187 | 162 | 0.0% |
| Smile Brands, Inc. (b) (e) (g) | Healthcare | 1/24/2024 |  | 439 |  |  | —% |
| Squan Holding Corp. (b) (e) (g) | Telecom | 1/24/2024 |  | 180835 |  |  | —% |
| Tax Defense Network, LLC (b) (e) (g) | Consumer | 1/24/2024 |  | 147099 |  |  | —% |
| Tax Defense Network, LLC (b) (e) (g) | Consumer | 1/24/2024 |  | 633382 |  |  | —% |
| Tennenbaum Waterman Fund, LP (a) (b) (m) | Diversified Investment Vehicles | 1/24/2024 |  | 10000 | 1668 | 548 | 0.0% |
| Travelpro Products, Inc. (a) (b) (e) (g) | Consumer | 1/24/2024 |  | 447007 | 913 | 304 | 0.0% |
| WHCG Purchaser III, Inc. (b) (e) (g) | Healthcare | 8/2/2024 |  | 5448273 |  |  | —% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| World Business Lenders, LLC (b) (e) (g) | Financials | 1/24/2024 |  | 922669 | $1617 | $1615 | 0.1% |
| WPNT, LLC (b) (e) (g) (l) (r) | Media/Entertainment | 1/24/2024 |  | 582300 |  |  | —% |
| YummyEarth, Inc. (b) (e) (g) | Food & Beverage | 1/24/2024 |  | 781 |  |  | —% |
| **Subtotal Equity/Other** |  |  |  |  | $593715 | $575980 | 31.2% |
| **Total Investments - 221.4% (d)** |  |  |  |  | $**4205613** | $**4081496** | **221.4%** |

---

**Interest Rate Swap:**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company Receives** | **Company Pays** | **Counterparty** | **Maturity Date** | **Notional Amount** | **Fair Value** | **Upfront Payments/Receipts** | **Change in Unrealized Appreciation/Depreciation** |
| S+ 0.097% | 4.14% | Wells Fargo, N.A | 1/1/2029 | $22747 | $(353) | $– $| (353) |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;All of the Company's investments, except the investments noted by this footnote, are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act"). Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. At September 30, 2025, qualifying assets represent 91.0% of the Company's total assets.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Securities exempt from registration under the Securities Act of 1933 (as defined below), and may be deemed to be "restricted securities". As of September 30, 2025, the aggregate fair value of these securities is $582.4 million or 31.6% of the Company's net assets. The initial acquisition dates have been included for such securities.

(c) The Company's investment falls under the definition of a significant subsidiary, as it exceeded the threshold of at least one of the tests under Rule 4-08(g), or exceeded the threshold of at least one of the tests under Rule 3-09. See *Note 3* for summarized financial information.

(d)&nbsp;&nbsp;&nbsp;&nbsp;Percentages are based on net assets attributable to common stock as of September 30, 2025.

(e)&nbsp;&nbsp;&nbsp;&nbsp;The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's Board of Directors (as defined below) as required by the 1940 Act. Such investments are valued using significant unobservable inputs (See *[Note 3](#ica7834b2a94a41c89a6a99cf91879fe8_46)* to the consolidated financial statements).

(f)&nbsp;&nbsp;&nbsp;&nbsp;All amounts are in thousands except share amounts.

(g)&nbsp;&nbsp;&nbsp;&nbsp;Non-income producing at September 30, 2025.

(h)&nbsp;&nbsp;&nbsp;&nbsp;Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. The investment may be subject to an unused/letter of credit facility fee. The negative fair value, if applicable, is the result of the capitalized discount on the loan or the unfunded commitment being valued below par. The negative amortized cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. Please refer to *[Note 7 - Commitments and Contingencies](#ica7834b2a94a41c89a6a99cf91879fe8_58)* for additional details.

(i)&nbsp;&nbsp;&nbsp;&nbsp;The majority of the investments bear interest at a rate that may be determined by reference Secured Overnight Financing Rate ("SOFR" or "S"), or Prime ("P") and which reset daily, monthly, quarterly, or semiannually. For each, the Company has provided the spread over the relevant reference rate and the current interest rate in effect at September 30, 2025. Certain investments are subject to reference rate floors. For fixed rate loans, a spread above a reference rate is not applicable. For funded floating rate securities, the all-in rate is disclosed within parentheses.

(j) &nbsp;&nbsp;&nbsp;&nbsp;The investment is on non-accrual status as of September 30, 2025.

(k)&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise indicated, all investments in the consolidated schedules of investments are non-affiliated, non-controlled investments.

(l)&nbsp;&nbsp;&nbsp;&nbsp;The provisions of the 1940 Act classify investments based on the level of control that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be "non-controlled" when the Company owns 25% or less of the portfolio company's outstanding voting securities and/or does not have the power to exercise control over the management or policies of such portfolio company. A company is generally presumed to be "controlled" when the Company owns more than 25% of the portfolio company's outstanding voting securities and/or has the power to exercise control over the management or policies of such portfolio company. The Company classifies this investment as "controlled".

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

(m)&nbsp;&nbsp;&nbsp;&nbsp;The provisions of the 1940 Act classify investments further based on the level of ownership that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as "non-affiliated" when the Company owns less than 5% of a portfolio company's outstanding voting securities and "affiliated" when the Company owns 5% or more of a portfolio company's outstanding voting securities. The Company classifies this investment as "affiliated".

(n)&nbsp;&nbsp;&nbsp;&nbsp;The Company's investment or a portion thereof is pledged as collateral under the JPM Credit Facility.

(o)&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise indicated, all of the Company's investments or a portion thereof are pledged as collateral under the JPM Revolver Facility.

(p)&nbsp;&nbsp;&nbsp;&nbsp;The Company's investment or a portion thereof is pledged as collateral under the Wells Fargo Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(q)&nbsp;&nbsp;&nbsp;&nbsp;Investments are held in the taxable wholly-owned, consolidated subsidiary, FBCC EEF Holdings LLC.

(r) &nbsp;&nbsp;&nbsp;&nbsp;Investments are held in the taxable wholly-owned, consolidated subsidiary, 54th Street Equity Holdings, Inc.

(s) &nbsp;&nbsp;&nbsp;&nbsp;The Collateralized Securities - subordinated notes are treated as equity investments and are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund's securities less contractual payments to debt holders and fund expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized.

(t) &nbsp;&nbsp;&nbsp;&nbsp;For equity investments in Collateralized Securities, the effective yield is presented in place of the investment coupon rate for each investment. Refer to footnote (s) for a further description of an equity investment in a Collateralized Security.

(u) The Company's investment is held through the consolidated subsidiary, Kahala Aviation Holdings, LLC, which owns 49% of the operating company, Danish CRJ LTD.

(v) &nbsp;&nbsp;&nbsp;&nbsp;The Company's investment is held through the consolidated subsidiaries, Kahala Aviation Holdings, LLC and Kahala Aviation US, Inc., which own 100% of the equity of the operating company, Kahala US OpCo LLC.

(w) &nbsp;&nbsp;&nbsp;&nbsp;The Company's investment is held through the consolidated subsidiary, Kahala Aviation Holdings, LLC, which owns 100% of the equity of the operating company, Kahala Aviation, LLC.

(x) &nbsp;&nbsp;&nbsp;&nbsp;The investment is held through BSP TCAP Acquisition Holdings LP, which is an affiliated acquisition entity. Due to certain restrictions, such as limits on the number of partners allowable within the equity structures of the newly acquired investments, these investments are still held within the acquisition entity as of September 30, 2025.

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**September 30, 2025**

**(Unaudited)**

The following table shows the portfolio composition by industry grouping based on fair value at September 30, 2025:

---

| | | |
|:---|:---|:---|
| | **Investments at Fair Value** | **Percentage of Total Portfolio** |
| Business Services | $660017 | 16.4% |
| Financials | 564647 | 13.8% |
| Healthcare | 541898 | 13.3% |
| Industrials | 507380 | 12.4% |
| Software/Services | 452301 | 11.1% |
| Diversified Investment Vehicles <sup>(1)</sup> | 312043 | 7.6% |
| Media/Entertainment | 160035 | 3.9% |
| Food & Beverage | 156945 | 3.8% |
| Paper & Packaging | 156643 | 3.8% |
| Utilities | 155735 | 3.8% |
| Consumer | 136863 | 3.4% |
| Telecom | 98323 | 2.4% |
| Chemicals | 84831 | 2.1% |
| Transportation | 79176 | 1.9% |
| Technology | 9999 | 0.2% |
| Energy | 3221 | 0.1% |
| Education | 1439 | 0.0% |
| Total | $4081496 | 100.0% |

---

<sup>_____________</sup>

<sup>(1)</sup> Includes the Company's investment in FBLC Senior Loan Fund, LLC, which represents 7.5% of the Company's investments at fair value as of September 30, 2025.

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| **Senior Secured First Lien Debt - 155.2% (d)** | | | | | | | |
| 1236904 BC, Ltd. (e) (n) | Software/Services |  | S+ 7.50% (11.96%), 3/4/2027 | $14624 | $14715 | $14846 | 0.8% |
| 1236904 BC, Ltd. (e) (n) (p) | Software/Services |  | S+ 5.50% (9.97%), 3/4/2027 | 18025 | 17614 | 17431 | 0.9% |
| ADCS Clinics Intermediate Holdings, LLC (e) | Healthcare |  | S+ 6.25% (10.78%), 5/7/2027 | 125 | 124 | 124 | 0.0% |
| ADCS Clinics Intermediate Holdings, LLC (e) (h) | Healthcare |  | S+ 6.25% (10.63%), 5/7/2026 | 154 | 151 | 141 | 0.0% |
| ADCS Clinics Intermediate Holdings, LLC (e) (n) | Healthcare |  | S+ 6.25% (10.64%), 5/7/2027 | 3894 | 3858 | 3865 | 0.2% |
| ADCS Clinics Intermediate Holdings, LLC (e) (n) | Healthcare |  | S+ 6.25% (10.78%), 5/7/2027 | 18996 | 18826 | 18854 | 1.0% |
| Adelaide Borrower, LLC (e) (h) | Software/Services |  | S+ 6.25%, 5/8/2030 |  | (74) | (142) | 0.0% |
| Adelaide Borrower, LLC (e) (h) | Software/Services |  | S+ 6.25%, 5/8/2030  |  | (89) | (89) | 0.0% |
| Adelaide Borrower, LLC (e) (n) (p) | Software/Services |  | S+ 6.25% (10.58%), 5/8/2030 | 35284 | 34622 | 34652 | 1.8% |
| Alera Group Intermediate Holdings, Inc. (e) (h) | Financials |  | S+ 5.75% (10.09%), 10/2/2028 | 4686 | 4663 | 4686 | 0.2% |
| Alera Group Intermediate Holdings, Inc. (e) (n) | Financials |  | S+ 5.25% (9.61%), 10/2/2028 | 8609 | 8575 | 8609 | 0.5% |
| Alera Group Intermediate Holdings, Inc. (e) (n) | Financials |  | S+ 5.25% (9.61%), 10/2/2028 | 17267 | 17197 | 17267 | 0.9% |
| American Rock Salt Company, LLC (n) | Chemicals |  | S+ 4.00% (8.78%), 6/9/2028 | 1998 | 1994 | 1796 | 0.1% |
| Arch Global Precision, LLC (e) | Industrials |  | S+ 4.75% (9.18%), 4/1/2026 | 2308 | 2310 | 2308 | 0.1% |
| Arch Global Precision, LLC (e) (h) | Industrials |  | S+ 4.75% (9.18%), 4/1/2025 | 992 | 993 | 992 | 0.1% |
| Arch Global Precision, LLC (e) (n) (p) | Industrials |  | S+ 4.75% (9.18%), 4/1/2026 | 7326 | 7332 | 7326 | 0.4% |
| Arctic Holdco, LLC (e) (h) | Paper & Packaging |  | S+ 6.00% (10.46%), 12/23/2026 | 3926 | 3918 | 3926 | 0.2% |
| Arctic Holdco, LLC (e) (n) (p) | Paper & Packaging |  | S+ 6.00% (10.46%), 12/23/2026 | 59404 | 58827 | 59404 | 3.1% |
| Armada Parent, Inc. (e) (h) | Industrials |  | S+ 5.75%, 10/29/2027 |  | (23) |  | —% |
| Armada Parent, Inc. (e) (h) (n) | Industrials |  | S+ 5.75% (10.36%), 10/29/2027 | 3203 | 3164 | 3203 | 0.2% |
| Armada Parent, Inc. (e) (n) | Industrials |  | S+ 5.75% (10.36%), 10/29/2027 | 63569 | 62862 | 63569 | 3.3% |
| Artifact Bidco, Inc. (e) (h) | Software/Services |  | S+ 4.50%, 7/28/2031 |  | (13) | (25) | 0.0% |
| Artifact Bidco, Inc. (e) (h) | Software/Services |  | S+ 4.50%, 7/26/2030 |  | (18) | (18) | 0.0% |
| Artifact Bidco, Inc. (e) (n) (p) | Software/Services |  | S+ 4.50% (8.83%), 7/28/2031 | 10875 | 10772 | 10773 | 0.6% |
| AuditBoard, Inc. (e) | Software/Services |  | S+ 4.75% (9.08%), 7/12/2031 | 22887 | 22663 | 22674 | 1.2% |
| AuditBoard, Inc. (e) (h) | Software/Services |  | S+ 4.75%, 7/12/2031 |  | (51) | (101) | 0.0% |
| AuditBoard, Inc. (e) (h) | Software/Services |  | S+ 4.75%, 7/12/2031 |  | (41) | (41) | 0.0% |
| Avalara, Inc. (e) (h) | Software/Services |  | S+ 6.25%, 10/19/2028 |  | (31) |  | —% |
| Avalara, Inc. (e) (n) | Software/Services |  | S+ 6.25% (10.58%), 10/19/2028 | 60192 | 59252 | 60192 | 3.2% |
| Aventine Holdings, LLC (e) (n) | Media/Entertainment |  | S+ 6.00% (10.43%) 3.00% PIK, 6/18/2027 | 16367 | 16231 | 16153 | 0.8% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Aventine Holdings, LLC (e) (n) (p) | Media/Entertainment |  | S+ 6.00% (10.43%) 3.00% PIK, 6/18/2027 | $41344 | $40983 | $40802 | 2.1% |
| Axiom Global, Inc. (n) (p) | Business Services |  | S+ 4.75% (9.44%), 10/2/2028 | 47132 | 46900 | 45600 | 2.4% |
| Azurite Intermediate Holdings, Inc. (e) | Software/Services |  | S+ 6.50% (10.86%), 3/19/2031  | 9961 | 9820 | 9961 | 0.5% |
| Azurite Intermediate Holdings, Inc. (e) | Software/Services |  | S+ 6.50% (10.86%), 3/19/2031 | 22639 | 22318 | 22639 | 1.2% |
| Azurite Intermediate Holdings, Inc. (e) (h) | Software/Services |  | S+ 6.50%, 3/19/2031 |  | (48) |  | —% |
| BCPE Oceandrive Buyer, Inc. (e) (j) | Healthcare |  | S+ 6.00% (10.87%), 12/30/2026 | 5281 | 5108 | 2641 | 0.1% |
| BCPE Oceandrive Buyer, Inc. (e) (j) (n) | Healthcare |  | S+ 6.25% (10.94%) PIK, 12/29/2028 | 2760 | 2690 | 1380 | 0.1% |
| BCPE Oceandrive Buyer, Inc. (e) (j) (n) (p) | Healthcare |  | S+ 6.25% (10.94%) 3.00% PIK, 12/29/2028 | 5434 | 5274 | 2717 | 0.1% |
| BCPE Oceandrive Buyer, Inc. (e) (j) (n) (p) | Healthcare |  | S+ 6.25% (10.94%) 3.00% PIK, 12/29/2028 | 32603 | 31676 | 16302 | 0.9% |
| Big Apple Advisory, LLC (e) (h) | Business Services |  | S+ 4.50%, 11/18/2031  |  | (113) | (225) | 0.0% |
| Big Apple Advisory, LLC (e) (h) | Business Services |  | S+ 4.50%, 11/18/2031 |  | (63) | (63) | 0.0% |
| Big Apple Advisory, LLC (e) (n) (p) | Business Services |  | P+ 3.50% (11.00%), 11/18/2031 | 47523 | 47054 | 47055 | 2.5% |
| Bingo Group Buyer, Inc. (e) (h) | Utilities |  | S+ 5.00%, 7/10/2031 |  | (10) | (20) | 0.0% |
| Bingo Group Buyer, Inc. (e) (h) | Utilities |  | S+ 5.00% (9.33%), 7/10/2031 | 20 | 12 | 12 | 0.0% |
| Bingo Group Buyer, Inc. (e) (n) (p) | Utilities |  | S+ 5.00% (9.33%), 7/10/2031 | 5464 | 5398 | 5401 | 0.3% |
| Capstone Logistics (e) (h) | Transportation |  | S+ 4.50%, 11/13/2029 |  | (1) |  | —% |
| Capstone Logistics (e) (n) | Transportation |  | S+ 4.50% (8.96%), 11/13/2029 | 20758 | 20773 | 20758 | 1.1% |
| Carr, Riggs & Ingram Capital, LLC (e) (h) | Business Services |  | S+ 4.75%, 11/18/2031 |  | (29) | (58) | 0.0% |
| Carr, Riggs & Ingram Capital, LLC (e) (h) | Business Services |  | S+ 4.75% (9.23%), 11/18/2031 | 339 | 313 | 313 | 0.0% |
| Carr, Riggs & Ingram Capital, LLC (e) (n) (p) | Business Services |  | S+ 4.75% (9.24%), 11/18/2031 | 11708 | 11592 | 11593 | 0.6% |
| Center Phase Energy, LLC (e) (n) | Utilities |  | S+ 6.00% (10.50%), 6/23/2027 | 10305 | 10199 | 10305 | 0.5% |
| Cold Spring Brewing, Co. (e) (n) (p) | Food & Beverage |  | S+ 4.75% (9.05%), 12/10/2030 | 24155 | 23913 | 23913 | 1.3% |
| Communication Technology Intermediate, LLC (e) (h) | Business Services |  | S+ 5.50% (9.86%), 5/5/2027 | 1188 | 1180 | 1188 | 0.1% |
| Communication Technology Intermediate, LLC (e) (n) | Business Services |  | S+ 5.50% (9.86%), 5/5/2027 | 24930 | 24847 | 24930 | 1.3% |
| Communication Technology Intermediate, LLC (e) (n) | Business Services |  | S+ 5.50% (9.88%), 5/5/2027 | 24603 | 24386 | 24603 | 1.3% |
| Communication Technology Intermediate, LLC (e) (n) (p) | Business Services |  | S+ 5.50% (9.86%), 5/5/2027 | 8672 | 8654 | 8672 | 0.5% |
| Consolidated Precision Products Corp. (e) (r) | Industrials |  | 10.14%, 1/1/2030 | 24956 | 24956 | 24956 | 1.3% |
| Corfin Industries, LLC (e) | Industrials |  | S+ 5.25% (10.61%), 12/27/2027 | 1566 | 1568 | 1566 | 0.1% |
| Corfin Industries, LLC (e) | Industrials |  | S+ 5.25% (10.61%), 12/27/2027 | 9532 | 9546 | 9532 | 0.5% |
| Corfin Industries, LLC (e) (n) (p) | Industrials |  | S+ 5.25% (10.61%), 2/5/2026 | 16017 | 16033 | 16017 | 0.8% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Cornerstone Chemical, Co. (b) (e) | Chemicals | 1/24/2024 | 10.25%, 2.00% PIK, 9/1/2027 | $1262 | $466 | $884 | 0.0% |
| Coronis Health, LLC (e) (j) | Healthcare |  | S+ 6.25% (11.57%), 7/28/2028 | 2001 | 1928 | 801 | 0.0% |
| Coronis Health, LLC (e) (j) (n) | Healthcare |  | S+ 6.25% (11.58%), 7/27/2029 | 24771 | 23606 | 9908 | 0.5% |
| Demakes Borrower, LLC (e) (h) | Food & Beverage |  | S+ 6.00%, 12/12/2029 |  | (14) |  | —% |
| Demakes Borrower, LLC (e) (n) | Food & Beverage |  | S+ 6.00% (10.45%), 12/12/2029 | 17756 | 17392 | 17756 | 0.9% |
| Division Holding Corp. (n) | Business Services |  | S+ 4.75% (9.22%), 5/26/2028 | 3413 | 3390 | 3413 | 0.2% |
| Dynagrid Holdings, LLC (e) (n) | Utilities |  | S+ 5.50% (9.98%), 12/18/2025 | 3633 | 3637 | 3633 | 0.2% |
| Dynagrid Holdings, LLC (e) (n) (p) | Utilities |  | S+ 5.50% (9.98%), 12/18/2025 | 8873 | 8881 | 8873 | 0.5% |
| Dynagrid Holdings, LLC (e) (n) (p) | Utilities |  | S+ 5.50% (9.98%), 12/18/2025 | 3094 | 3053 | 3094 | 0.2% |
| Dynagrid Holdings, LLC (e) (p) | Utilities |  | S+ 5.50% (9.98%), 12/18/2025 | 13230 | 13242 | 13230 | 0.7% |
| Electric Power Engineers, LLC (e) (h) | Business Services |  | S+ 4.50%, 12/31/2031 |  | (66) | (133) | 0.0% |
| Electric Power Engineers, LLC (e) (h) | Business Services |  | S+ 4.50%, 12/31/2031 |  | (53) | (53) | 0.0% |
| Electric Power Engineers, LLC (e) (n) (p) | Business Services |  | S+ 4.50% (8.83%), 12/31/2031 | 27909 | 27630 | 27630 | 1.4% |
| Eliassen Group, LLC (e) (n) | Business Services |  | S+ 5.75% (10.34%), 4/14/2028 | 1358 | 1355 | 1358 | 0.1% |
| Eliassen Group, LLC (e) (n) (p) | Business Services |  | S+ 5.75% (10.08%), 4/14/2028 | 16976 | 16872 | 16976 | 0.9% |
| Faraday Buyer, LLC (e) (h) | Utilities |  | S+ 6.00%, 10/11/2028 |  | (14) | (92) | 0.0% |
| Faraday Buyer, LLC (e) (n) | Utilities |  | S+ 6.00% (10.33%), 10/11/2028 | 41222 | 41222 | 40542 | 2.1% |
| Faraday Buyer, LLC (e) (n) | Utilities |  | S+ 6.00% (10.33%), 10/11/2028 | 8733 | 8599 | 8589 | 0.4% |
| FGT Purchaser, LLC (e) | Consumer |  | S+ 5.50% (10.20%), 9/13/2028 | 3120 | 3113 | 2697 | 0.1% |
| FGT Purchaser, LLC (e) (n) | Consumer |  | S+ 5.50% (10.20%), 9/13/2028 | 30498 | 30414 | 26365 | 1.4% |
| Florida Food Products, LLC (e) (n) | Food & Beverage |  | S+ 5.00% (9.59%), 10/18/2028 | 12082 | 11930 | 10603 | 0.6% |
| FloWorks International, LLC (e) (h) | Industrials |  | S+ 4.75%, 11/26/2031 |  | (24) | (49) | 0.0% |
| FloWorks International, LLC (e) (n) (p) | Industrials |  | S+ 4.75% (9.27%), 11/26/2031 | 39663 | 39269 | 39272 | 2.1% |
| Foresight Energy Operating, LLC (e) | Energy |  | S+ 8.00% (12.43%), 6/30/2027 | 1051 | 1052 | 1051 | 0.1% |
| Galway Borrower, LLC (e) (h) | Financials |  | S+ 4.50% (8.83%), 9/29/2028 | 278 | 265 | 278 | 0.0% |
| Galway Borrower, LLC (e) (h) | Financials |  | S+ 4.50% (8.83%), 9/29/2028 | 81 | 63 | 81 | 0.0% |
| Galway Borrower, LLC (e) (n) | Financials |  | S+ 4.50% (8.83%), 9/29/2028 | 38532 | 38427 | 38532 | 2.0% |
| Green Energy Partners/Stonewall, LLC (n) | Utilities |  | S+ 6.00% (10.59%), 11/12/2026 | 14562 | 14534 | 14617 | 0.8% |
| Ground Penetrating Radar Systems, LLC (e) (h) | Business Services |  | S+ 5.25%, 4/2/2031 |  | (13) |  | —% |
| Ground Penetrating Radar Systems, LLC (e) (h) | Business Services |  | P+ 4.25% (11.75%), 4/2/2031 | 131 | 117 | 131 | 0.0% |
| Ground Penetrating Radar Systems, LLC (e) (n) (p) | Business Services |  | S+ 5.25% (9.77%), 4/2/2031 | 8251 | 8135 | 8251 | 0.4% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| HealthEdge Software, Inc. (e) | Healthcare |  | S+ 4.75% (9.15%), 7/16/2031 | $9542 | $9449 | $9453 | 0.5% |
| HealthEdge Software, Inc. (e) (h) | Healthcare |  | S+ 4.75%, 7/16/2031 |  | (27) | (27) | 0.0% |
| HealthEdge Software, Inc. (e) (n) (p) | Healthcare |  | S+ 4.75% (9.13%), 7/16/2031 | 21630 | 21422 | 21429 | 1.1% |
| Hospice Care Buyer, Inc. (e) | Healthcare |  | S+ 6.50% (10.99%), 12/9/2026 | 2154 | 2120 | 2154 | 0.1% |
| Hospice Care Buyer, Inc. (e) | Healthcare |  | S+ 6.50% (10.99%), 12/9/2026 | 4661 | 4592 | 4661 | 0.2% |
| Hospice Care Buyer, Inc. (e) (h) | Healthcare |  | S+ 6.50% (10.73%), 12/9/2026 | 1649 | 1639 | 1649 | 0.1% |
| Hospice Care Buyer, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.99%), 12/9/2026 | 3563 | 3508 | 3563 | 0.2% |
| Hospice Care Buyer, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.99%), 12/9/2026 | 25076 | 24694 | 25076 | 1.3% |
| Hospice Care Buyer, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.99%), 12/9/2026 | 8484 | 8352 | 8484 | 0.4% |
| Hospice Care Buyer, Inc. (e) (n) | Healthcare |  | S+ 6.50% (10.99%), 12/9/2026 | 6509 | 6405 | 6509 | 0.3% |
| ICR Operations, LLC (e) | Business Services |  | S+ 5.50% (9.98%), 11/22/2028 | 41292 | 40750 | 41292 | 2.2% |
| ICR Operations, LLC (e) | Business Services |  | S+ 5.50% (9.98%), 11/22/2028 | 2243 | 2214 | 2243 | 0.1% |
| ICR Operations, LLC (e) (h) | Business Services |  | S+ 5.50% (10.00%), 11/22/2027 | 6101 | 6056 | 6101 | 0.3% |
| ICR Operations, LLC (e) (h) | Business Services |  | S+ 5.50% (10.00%), 11/22/2027 | 1597 | 1597 | 1597 | 0.1% |
| Ideal Tridon Holdings, Inc. (e) (h) | Industrials |  | S+ 6.75%, 4/5/2028 |  |  | 7 | 0.0% |
| Ideal Tridon Holdings, Inc. (e) (n) (p) | Industrials |  | S+ 6.75% (11.34%), 4/5/2028 | 29864 | 29281 | 29938 | 1.6% |
| IG Investments Holdings, LLC (e) (h) | Business Services |  | S+ 5.00%, 9/22/2028 |  | (25) |  | —% |
| IG Investments Holdings, LLC (e) (n) | Business Services |  | S+ 5.00% (9.57%), 9/22/2028 | 26263 | 26263 | 26263 | 1.4% |
| Indigo Buyer, Inc. (e) | Paper & Packaging |  | S+ 6.25% (10.92%), 5/23/2028 | 7861 | 7762 | 7861 | 0.4% |
| Indigo Buyer, Inc. (e) (h) | Paper & Packaging |  | S+ 5.25%, 5/23/2028 |  | (77) | (114) | 0.0% |
| Indigo Buyer, Inc. (e) (h) | Paper & Packaging |  | S+ 6.25%, 5/23/2028 |  | (33) |  | —% |
| Indigo Buyer, Inc. (e) (n) | Paper & Packaging |  | S+ 5.25% (9.94%), 5/23/2028 | 11372 | 11215 | 11258 | 0.6% |
| Indigo Buyer, Inc. (e) (n) | Paper & Packaging |  | S+ 6.25% (10.92%), 5/23/2028 | 12661 | 12502 | 12661 | 0.7% |
| Indigo Buyer, Inc. (e) (n) | Paper & Packaging |  | S+ 6.25% (10.86%), 5/23/2028 | 29600 | 29227 | 29600 | 1.5% |
| Integrated Efficiency Solutions, Inc. (e) (h) (m) | Industrials |  | 7.50%, 12/31/2025 | 210 | 210 | 210 | 0.0% |
| Integrated Efficiency Solutions, Inc. (e) (m) | Industrials |  | 7.50%, 12/31/2025 | 1393 | 1394 | 1393 | 0.1% |
| Integrated Global Services, Inc. (e) | Industrials |  | S+ 6.00% (10.48%), 2/4/2026 | 1825 | 1825 | 1825 | 0.1% |
| Integrated Global Services, Inc. (e) (h) | Industrials |  | S+ 6.00%, 9/22/2028 |  | (52) |  | —% |
| Integrated Global Services, Inc. (e) (p) | Industrials |  | S+ 6.00% (10.67%), 2/4/2026 | 13510 | 13439 | 13510 | 0.7% |
| International Cruise & Excursion Gallery, Inc. (e) (p) | Business Services |  | S+ 6.00% (10.33%), 12/31/2028 | 1439 | 1439 | 1439 | 0.1% |
| IQN Holding Corp. (e) (h) | Software/Services |  | S+ 5.25% (9.76%), 5/2/2028 | 595 | 592 | 595 | 0.0% |
| IQN Holding Corp. (e) (n) (p) | Software/Services |  | S+ 5.25% (9.76%), 5/2/2029 | 17184 | 17084 | 17184 | 0.9% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| J&K Ingredients, LLC (e) (n) | Food & Beverage |  | S+ 6.50% (10.83%), 11/16/2028 | $12344 | $12104 | $12344 | 0.6% |
| Kissner Milling Co., Ltd. (b) (n) | Industrials | 4/16/2021 | 4.88%, 5/1/2028 | 5258 | 5078 | 4950 | 0.3% |
| Knowledge Pro Buyer, Inc. (e) (h) | Business Services |  | S+ 5.00% (9.46%), 12/10/2027 | 294 | 284 | 294 | 0.0% |
| Knowledge Pro Buyer, Inc. (e) (h) (n) | Business Services |  | S+ 5.00% (9.46%), 12/10/2027 | 16445 | 16328 | 16445 | 0.9% |
| Knowledge Pro Buyer, Inc. (e) (n) (p) | Business Services |  | S+ 5.00% (9.46%), 12/10/2027 | 34952 | 34857 | 34952 | 1.8% |
| Labrie Environmental Group, LLC (a) (e) | Industrials |  | S+ 5.50% (9.96%), 9/1/2026 | 21894 | 21327 | 21894 | 1.1% |
| Lakeland Tours, LLC (e) (j) (n) (p) | Education |  | 8.00%, 9/25/2027 | 6118 | 4764 | 1414 | 0.1% |
| LaserShip, Inc. (n) | Transportation |  | S+ 7.00% (11.78%), 1/2/2029 | 1394 | 1394 | 1096 | 0.1% |
| LaserShip, Inc. (n) | Transportation |  | S+ 7.50% (12.28%), 8/10/2029 | 2668 | 2668 | 978 | 0.1% |
| LSF12 Donnelly Bidco, LLC (e) (n) | Industrials |  | S+ 6.50% (10.86%), 10/2/2029 | 18930 | 18552 | 18930 | 1.0% |
| Mandrake Bidco, Inc. (e) (h) | Industrials |  | S+ 4.75%, 8/20/2030 |  | (96) | (96) | 0.0% |
| Mandrake Bidco, Inc. (e) (n) (p) | Industrials |  | S+ 4.75% (9.34%), 8/20/2031 | 63133 | 62517 | 62532 | 3.3% |
| Manna Pro Products, LLC (e) | Consumer |  | S+ 6.00% (10.54%), 12/10/2026 | 3915 | 3808 | 3293 | 0.2% |
| Manna Pro Products, LLC (e) (h) | Consumer |  | S+ 6.00% (10.54%), 12/10/2026 | 2638 | 2589 | 2208 | 0.1% |
| Manna Pro Products, LLC (e) (p) | Consumer |  | S+ 6.00% (10.54%), 12/10/2026 | 1866 | 1815 | 1570 | 0.1% |
| Manna Pro Products, LLC (e) (p) | Consumer |  | S+ 6.00% (10.54%), 12/10/2026 | 6712 | 6529 | 5645 | 0.3% |
| Manna Pro Products, LLC (e) (p) | Consumer |  | S+ 6.00% (10.54%), 12/10/2026 | 23673 | 23026 | 19909 | 1.0% |
| McDonald Worley, P.C. (e) (j) | Business Services |  | 26.00% PIK, 12/31/2025 | 25927 | 12659 | 12442 | 0.7% |
| Medical Depot Holdings, Inc. (e) | Healthcare |  | S+ 10.00% (14.43%) 9.00% PIK, 6/1/2025 | 4155 | 4157 | 4155 | 0.2% |
| Medical Depot Holdings, Inc. (e) (n) (p) | Healthcare |  | S+ 9.50% (14.20%) 4.00% PIK, 6/1/2025 | 21565 | 21049 | 21727 | 1.1% |
| Medical Management Resource Group, LLC (e) (h) | Healthcare |  | S+ 6.00% (10.43%), 9/30/2026 | 1235 | 1224 | 1207 | 0.1% |
| Medical Management Resource Group, LLC (e) (n) | Healthcare |  | S+ 6.00% (10.43%), 9/30/2027 | 9406 | 9313 | 9279 | 0.5% |
| Medical Management Resource Group, LLC (e) (n) | Healthcare |  | S+ 6.00% (10.43%), 9/30/2027 | 22773 | 22547 | 22466 | 1.2% |
| MGTF Radio Company, LLC (e) (l) | Media/Entertainment |  | S+ 6.00% (10.33%), 4/1/2025 | 45021 | 44916 | 31672 | 1.7% |
| Midwest Can Company, LLC (e) (n) (p) | Paper & Packaging |  | S+ 6.00% (10.36%), 3/2/2026 | 29913 | 29914 | 29913 | 1.6% |
| Miller Environmental Group, Inc. (e) (h) | Business Services |  | S+ 4.75%, 9/6/2031 |  | (35) | (70) | 0.0% |
| Miller Environmental Group, Inc. (e) (h) | Business Services |  | S+ 4.75%, 9/6/2031 |  | (17) | (35) | 0.0% |
| Miller Environmental Group, Inc. (e) (h) | Business Services |  | S+ 4.75%, 9/6/2031 |  | (35) | (35) | 0.0% |
| Miller Environmental Group, Inc. (e) (n) (p) | Business Services |  | S+ 4.75% (9.08%), 9/10/2031 | 17591 | 17467 | 17464 | 0.9% |
| Mirra-Primeaccess Holdings, LLC (e) (h) | Healthcare |  | S+ 6.50% (11.09%), 7/29/2026 | 8442 | 8422 | 6754 | 0.4% |
| Mirra-Primeaccess Holdings, LLC (e) (n) | Healthcare |  | S+ 6.50% (11.09%), 7/29/2026 | 68799 | 68655 | 58479 | 3.1% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| MRI Software, LLC | Software/Services |  | S+ 4.75% (9.08%), 2/10/2027 | $2204 | $2204 | $2198 | 0.1% |
| MRI Software, LLC (e) (h) | Software/Services |  | S+ 4.75% (9.08%), 2/10/2027 | 647 | 606 | 588 | 0.0% |
| Muth Mirror Systems, LLC (e) | Technology |  | 11.00%, 4.00% PIK, 4/23/2025 | 1354 | 1250 | 1083 | 0.1% |
| Muth Mirror Systems, LLC (e) (n) (p) | Technology |  | 11.00%, 4.00% PIK, 4/23/2025 | 14794 | 14503 | 11836 | 0.6% |
| New Star Metals, Inc. (e) (n) (p) | Industrials |  | S+ 5.00% (9.58%), 1/9/2026 | 30109 | 29388 | 28751 | 1.5% |
| Norvax, LLC (a) (e) (h) | Business Services |  | S+ 6.50% (11.17%), 6/30/2025 | 195 | 195 | 195 | 0.0% |
| Odessa Technologies, Inc. (e) (h) | Software/Services |  | S+ 5.50%, 10/19/2027 |  | (16) |  | —% |
| Odessa Technologies, Inc. (e) (n) | Software/Services |  | S+ 5.50% (9.96%), 10/19/2027 | 20446 | 20391 | 20446 | 1.1% |
| ORG GC Holdings, LLC (e) (m) | Business Services |  | S+ 6.50% (11.09%), 11/29/2026 | 10111 | 10125 | 10112 | 0.5% |
| PetVet Care Centers, LLC (e) (h) | Healthcare |  | S+ 6.00%, 11/15/2030 |  | (9) | (68) | 0.0% |
| PetVet Care Centers, LLC (e) (h) | Healthcare |  | S+ 6.00%, 11/15/2029 |  | (17) | (68) | 0.0% |
| PetVet Care Centers, LLC (e) (n) (p) | Healthcare |  | S+ 6.00% (10.36%), 11/15/2030 | 30605 | 30089 | 30091 | 1.6% |
| Pie Buyer, Inc. (e) (h) | Food & Beverage |  | S+ 5.50% (10.04%), 4/6/2026 | 2065 | 2060 | 2013 | 0.1% |
| Pie Buyer, Inc. (e) (n) | Food & Beverage |  | S+ 5.50% (10.04%) 2.50% PIK, 4/5/2027 | 2247 | 2243 | 2202 | 0.1% |
| Pie Buyer, Inc. (e) (n) | Food & Beverage |  | S+ 5.50% (11.01%) 2.50% PIK, 4/5/2027 | 8566 | 8541 | 8395 | 0.4% |
| Pie Buyer, Inc. (e) (n) (p) | Food & Beverage |  | S+ 5.50% (10.84%) 2.50% PIK, 4/5/2027 | 2896 | 2888 | 2838 | 0.1% |
| Pie Buyer, Inc. (e) (n) (p) | Food & Beverage |  | S+ 5.50% (11.01%) 2.50% PIK, 4/5/2027 | 39580 | 39453 | 38788 | 2.0% |
| PlayPower, Inc. (e) (h) | Industrials |  | S+ 5.25%, 8/28/2030 |  | (37) | (37) | 0.0% |
| PlayPower, Inc. (e) (n) (p) | Industrials |  | S+ 5.25% (9.58%), 8/28/2030 | 17261 | 17011 | 17016 | 0.9% |
| Pluralsight, LLC (e) | Software/Services |  | S+ 4.50% (9.01%) 1.50% PIK, 8/22/2029 | 4551 | 4551 | 4551 | 0.2% |
| Pluralsight, LLC (e) | Software/Services |  | S+ 7.50% (12.01%) PIK, 8/22/2029 | 7020 | 7020 | 7020 | 0.4% |
| Pluralsight, LLC (e) | Software/Services |  | S+ 4.50% (9.01%) 1.50% PIK, 8/22/2029 | 2312 | 2312 | 2312 | 0.1% |
| Pluto Acquisition I, Inc. | Healthcare |  | S+ 5.50% (9.84%), 6/20/2028 | 3304 | 3304 | 3366 | 0.2% |
| Point Broadband Acquisition, LLC (e) (n) | Telecom |  | S+ 5.50% (9.90%), 10/2/2028 | 11592 | 11547 | 11592 | 0.6% |
| Point Broadband Acquisition, LLC (e) (n) | Telecom |  | S+ 5.50% (10.09%), 10/2/2028 | 27502 | 27384 | 27502 | 1.4% |
| Questex, Inc. (e) (h) | Media/Entertainment |  | S+ 5.50%, 5/15/2029 |  | (34) | (34) | 0.0% |
| Questex, Inc. (e) (n) (p) | Media/Entertainment |  | S+ 5.50% (10.02%), 5/15/2029 | 15101 | 14816 | 14837 | 0.8% |
| Reagent Chemical and Research, LLC (e) (h) | Chemicals |  | S+ 5.25%, 4/30/2030 |  | (133) | (135) | 0.0% |
| Reagent Chemical and Research, LLC (e) (n) (p) | Chemicals |  | S+ 5.25% (9.61%), 4/30/2031 | 53090 | 52104 | 52128 | 2.7% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Relativity Oda, LLC (e) (n) (p) | Software/Services |  | S+ 4.50% (8.86%), 5/12/2029 | $7717 | $7693 | $7717 | 0.4% |
| REP TEC Intermediate Holdings, Inc. (e) (n) (p) | Software/Services |  | S+ 5.50% (9.83%), 12/1/2027 | 24481 | 24468 | 24481 | 1.3% |
| Rialto Management Group, LLC (e) (h) | Financials |  | S+ 5.00%, 12/5/2030 |  | (7) | (8) | 0.0% |
| Rialto Management Group, LLC (e) (n) (p) | Financials |  | S+ 5.00% (9.53%), 12/5/2030 | 21834 | 21616 | 21616 | 1.1% |
| Roadsafe Holdings, Inc. (e) (n) | Industrials |  | S+ 5.75% (11.06%), 10/19/2027 | 7362 | 7371 | 7362 | 0.4% |
| Roadsafe Holdings, Inc. (e) (n) | Industrials |  | S+ 5.75% (11.06%), 10/19/2027 | 6849 | 6818 | 6849 | 0.4% |
| Roadsafe Holdings, Inc. (e) (n) (p) | Industrials |  | P+ 4.75% (12.25%), 10/19/2027 | 1087 | 1066 | 1087 | 0.1% |
| Roadsafe Holdings, Inc. (e) (n) (p) | Industrials |  | S+ 5.75% (10.27%), 10/19/2027 | 12059 | 12018 | 12059 | 0.6% |
| RSC Acquisition, Inc. (e) | Financials |  | S+ 4.75% (9.34%), 11/1/2029 | 1695 | 1695 | 1695 | 0.1% |
| RSC Acquisition, Inc. (e) | Financials |  | S+ 4.75% (9.26%), 11/1/2029 | 9007 | 9007 | 9007 | 0.5% |
| RSC Acquisition, Inc. (e) (h) | Financials |  | S+ 4.75%, 11/1/2029 |  | (45) |  | —% |
| RSC Acquisition, Inc. (e) (h) | Financials |  | S+ 4.75%, 11/1/2029 |  | (6) |  | —% |
| RSC Acquisition, Inc. (e) (n) | Financials |  | S+ 4.75% (9.26%), 11/1/2029 | 7116 | 7122 | 7116 | 0.4% |
| RSC Acquisition, Inc. (e) (n) (p) | Financials |  | S+ 4.75% (9.08%), 11/1/2029 | 21593 | 21587 | 21593 | 1.1% |
| Saturn SHC Buyer Holdings, Inc. (e) (h) | Healthcare |  | S+ 6.00%, 11/18/2027 |  | (39) |  | —% |
| Saturn SHC Buyer Holdings, Inc. (e) (n) | Healthcare |  | S+ 6.00% (10.47%), 11/18/2027 | 12993 | 12833 | 12993 | 0.7% |
| Saturn SHC Buyer Holdings, Inc. (e) (n) | Healthcare |  | S+ 6.00% (10.47%), 11/18/2027 | 37166 | 37054 | 37165 | 1.9% |
| Saturn Sound Bidco, Ltd. (a) (e) (h) | Business Services |  | S+ 5.25%, 12/3/2031 |  | (22) | (44) | 0.0% |
| Saturn Sound Bidco, Ltd. (a) (e) (n) (p) | Business Services |  | S+ 5.25% (9.78%), 12/3/2031 | 24457 | 24212 | 24212 | 1.3% |
| SCIH Salt Holdings, Inc. (e) (h) | Industrials |  | S+ 4.00% (8.51%), 11/1/2028 | 978 | 979 | 985 | 0.1% |
| Sherlock Buyer Corp. (e) (h) | Business Services |  | S+ 5.75%, 12/8/2027 |  | (6) |  | —% |
| Sherlock Buyer Corp. (e) (n) (p) | Business Services |  | S+ 5.75% (10.18%), 12/8/2028 | 15719 | 15661 | 15719 | 0.8% |
| Simplifi Holdings, Inc. (e) (h) | Media/Entertainment |  | S+ 5.50%, 10/1/2026 |  | (18) |  | —% |
| Simplifi Holdings, Inc. (e) (n) | Media/Entertainment |  | S+ 5.50% (9.96%), 10/1/2027 | 50040 | 49491 | 50040 | 2.5% |
| SitusAMC Holdings Corp. (e) | Financials |  | S+ 5.50% (9.93%), 12/22/2027 | 9677 | 9629 | 9677 | 0.5% |
| SitusAMC Holdings Corp. (e) (n) | Financials |  | S+ 5.50% (9.93%), 12/22/2027 | 6341 | 6306 | 6341 | 0.3% |
| St. Croix Hospice Acquisition Corp. (e) | Healthcare |  | S+ 5.25% (9.94%), 10/30/2026 | 2752 | 2755 | 2752 | 0.1% |
| St. Croix Hospice Acquisition Corp. (e) (n) (p) | Healthcare |  | S+ 5.25% (9.94%), 10/30/2026 | 18934 | 18819 | 18934 | 1.0% |
| St. Croix Hospice Acquisition Corp. (e) (p) | Healthcare |  | S+ 5.25% (9.94%), 10/30/2026 | 24901 | 24931 | 24901 | 1.3% |
| Striper Buyer, LLC (e) (n) | Paper & Packaging |  | S+ 5.50% (9.96%), 12/30/2026 | 16827 | 16808 | 16827 | 0.9% |
| SunMed Group Holdings, LLC (e) (h) | Healthcare |  | S+ 5.50%, 6/16/2027 |  | (2) |  | —% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| SunMed Group Holdings, LLC (e) (n) | Healthcare |  | S+ 5.50% (10.19%), 6/16/2028 | $12568 | $12437 | $12568 | 0.7% |
| Tax Defense Network, LLC (e) (j) | Consumer |  | P+ 6.00% (13.50%) PIK, 3/31/2023 | 54633 | 927 | 404 | 0.0% |
| Tax Defense Network, LLC (e) (j) | Consumer |  | P+ 6.00% (13.50%) PIK, 3/31/2023 | 9698 | 164 | 72 | 0.0% |
| Tax Defense Network, LLC (e) (j) | Consumer |  | 12.00% PIK, 3/31/2023 | 5342 | 4742 | 5342 | 0.3% |
| TEI Intermediate, LLC (e) (h) | Business Services |  | S+ 4.75%, 12/15/2031 |  | (45) | (18) | 0.0% |
| TEI Intermediate, LLC (e) (h) | Business Services |  | S+ 4.75% (9.15%), 12/15/2031 | 366 | 358 | 358 | 0.0% |
| TEI Intermediate, LLC (e) (n) (p) | Business Services |  | S+ 4.75% (9.15%), 12/15/2031 | 22847 | 22828 | 22790 | 1.2% |
| The NPD Group, LP (e) (h) | Business Services |  | S+ 5.00% (9.36%), 12/1/2027 | 573 | 552 | 573 | 0.0% |
| The NPD Group, LP (e) (n) | Business Services |  | S+ 5.00% (9.59%), 12/1/2028 | 52233 | 51619 | 52232 | 2.6% |
| Therapy Brands Holdings, LLC (e) (n) | Healthcare |  | S+ 4.00% (8.62%), 5/18/2028 | 6014 | 6014 | 5406 | 0.3% |
| Tivity Health, Inc. (e) (n) | Healthcare |  | S+ 5.00% (9.36%), 6/28/2029 | 24537 | 24212 | 24537 | 1.3% |
| Trinity Air Consultants Holdings Corp. (e) (h) | Business Services |  | S+ 5.25%, 6/29/2028 |  | (7) |  | —% |
| Trinity Air Consultants Holdings Corp. (e) (n) | Business Services |  | S+ 5.25% (9.63%), 6/29/2028 | 8522 | 8510 | 8522 | 0.4% |
| Trinity Air Consultants Holdings Corp. (e) (n) | Business Services |  | S+ 5.25% (9.63%), 6/29/2028 | 5878 | 5858 | 5878 | 0.3% |
| Trinity Air Consultants Holdings Corp. (e) (n) | Business Services |  | S+ 5.25% (9.76%), 6/29/2028 | 29212 | 29151 | 29212 | 1.5% |
| Triple Lift, Inc. (e) (h) | Software/Services |  | S+ 5.75%, 5/5/2028 |  | (54) | (188) | 0.0% |
| Triple Lift, Inc. (e) (n) (p) | Software/Services |  | S+ 5.75% (10.25%), 5/5/2028 | 39381 | 38383 | 37806 | 2.0% |
| Trystar, LLC (e) (h) | Utilities |  | S+ 4.50%, 8/6/2031 |  | (60) | (118) | 0.0% |
| Trystar, LLC (e) (h) | Utilities |  | S+ 4.50%, 8/6/2031 |  | (59) | (59) | 0.0% |
| Trystar, LLC (e) (n) (p) | Utilities |  | S+ 4.50% (8.93%), 8/6/2031 | 10469 | 10370 | 10370 | 0.5% |
| Trystar, LLC (e) (n) (p) | Utilities |  | S+ 4.50% (9.03%), 8/6/2031 | 24797 | 24554 | 24564 | 1.3% |
| Urban One, Inc. (b) | Media/Entertainment | 1/24/2024 | 7.38%, 2/1/2028 | 1561 | 1396 | 972 | 0.1% |
| US Oral Surgery Management Holdco, LLC (e) | Healthcare |  | S+ 6.00% (10.52%), 11/20/2028 | 5050 | 5023 | 5050 | 0.3% |
| US Oral Surgery Management Holdco, LLC (e) (h) | Healthcare |  | S+ 5.25%, 11/20/2028 |  | (5) |  | —% |
| US Oral Surgery Management Holdco, LLC (e) (n) | Healthcare |  | S+ 5.25% (9.94%), 11/20/2028 | 6997 | 6942 | 6997 | 0.4% |
| US Oral Surgery Management Holdco, LLC (e) (n) | Healthcare |  | S+ 5.25% (9.82%), 11/18/2028 | 6098 | 6070 | 6098 | 0.3% |
| US Oral Surgery Management Holdco, LLC (e) (n) | Healthcare |  | S+ 5.25% (9.86%), 11/20/2028 | 17668 | 17503 | 17668 | 0.9% |
| US Salt Investors, LLC (e) (h) | Chemicals |  | S+ 5.25%, 7/20/2026 |  | (7) |  | —% |
| US Salt Investors, LLC (e) (n) | Chemicals |  | S+ 5.25% (9.73%), 7/19/2028 | 27311 | 26938 | 27311 | 1.4% |
| Varicent Intermediate Holdings Corp. (e) (h) | Software/Services |  | S+ 6.00%, 3.25% PIK, 8/23/2031 |  | (32) | (63) | 0.0% |
| Varicent Intermediate Holdings Corp. (e) (h) | Software/Services |  | S+ 6.00%, 3.25% PIK, 8/23/2031 |  | (35) | (35) | 0.0% |
| Varicent Intermediate Holdings Corp. (e) (n) (p) | Software/Services |  | S+ 6.00% (10.60%) 3.25% PIK, 8/23/2031 | 19388 | 19112 | 19113 | 1.0% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Victors CCC Buyer, LLC (e) | Business Services |  | S+ 4.75% (9.30%), 6/1/2029 | $1567 | $1564 | $1567 | 0.1% |
| Victors CCC Buyer, LLC (e) (h) | Business Services |  | S+ 4.75%, 6/1/2029 |  | (17) |  | —% |
| Victors CCC Buyer, LLC (e) (n) | Business Services |  | S+ 4.75% (9.13%), 6/1/2029 | 23698 | 23375 | 23698 | 1.2% |
| West Coast Dental Services, Inc. (e) (h) | Healthcare |  | S+ 5.75% (10.52%), 7/1/2028 | 2794 | 2746 | 2740 | 0.1% |
| West Coast Dental Services, Inc. (e) (n) | Healthcare |  | S+ 5.75% (10.47%) 2.00% PIK, 7/1/2028 | 27922 | 27502 | 27503 | 1.4% |
| West Coast Dental Services, Inc. (e) (n) | Healthcare |  | S+ 5.75% (10.50%), 7/1/2028 | 1673 | 1644 | 1648 | 0.1% |
| Westwood Professional Services, Inc. (e) (h) | Business Services |  | S+ 4.75% (9.26%), 9/16/2031 | 3180 | 3100 | 3050 | 0.2% |
| Westwood Professional Services, Inc. (e) (h) | Business Services |  | S+ 4.75%, 9/16/2031 |  | (65) | (65) | 0.0% |
| Westwood Professional Services, Inc. (e) (n) (p) | Business Services |  | S+ 4.75% (9.08%), 9/19/2031 | 45303 | 44871 | 44868 | 2.3% |
| WHCG Purchaser III, Inc. (e) | Healthcare |  | S+ 6.50% (10.83%) 3.25% PIK, 6/29/2029 | 22824 | 22824 | 22824 | 1.2% |
| WIN Holdings III Corp. (e) (h) | Consumer |  | S+ 5.25% (9.71%), 7/16/2026 | 1986 | 1967 | 1986 | 0.1% |
| WIN Holdings III Corp. (e) (n) | Consumer |  | S+ 5.25% (9.71%), 7/16/2028 | 41683 | 41574 | 41683 | 2.2% |
| WIN Holdings III Corp. (e) (n) | Consumer |  | S+ 5.75% (10.25%), 7/16/2028 | 10016 | 9829 | 10016 | 0.5% |
| Zendesk, Inc. (e) (s) (t) | Software/Services |  | S+ 5.00% (9.33%), 11/22/2028 | 65525 | 64967 | 65525 | 3.4% |
| **Subtotal Senior Secured First Lien Debt** |  |  |  |  | $3039030 | $2965692 | 155.2% |
| **Senior Secured Second Lien Debt - 6.4% (d)** |  |  |  |  |  |  |  |
| American Rock Salt Company, LLC (e) (n) | Chemicals |  | S+ 7.25% (12.03%), 6/11/2029 | $6010 | $5962 | $5411 | 0.3% |
| Anchor Glass Container Corp. (e) (j) | Paper & Packaging |  | S+ 7.75% (12.71%), 6/7/2026 | 7301 | 2124 | 2921 | 0.2% |
| Aruba Investments Holdings, LLC (e) (p) | Chemicals |  | S+ 7.75% (12.21%), 11/24/2028 | 3759 | 3632 | 3604 | 0.2% |
| CommerceHub, Inc. (e) | Technology |  | S+ 7.00% (11.80%), 12/29/2028 | 9388 | 8181 | 7980 | 0.4% |
| Corelogic, Inc. (n) | Business Services |  | S+ 6.50% (10.97%), 6/4/2029 | 9272 | 8650 | 8994 | 0.5% |
| Edelman Financial Center, LLC (n) | Financials |  | S+ 5.25% (9.61%), 10/6/2028 | 9500 | 9478 | 9565 | 0.5% |
| Integrated Efficiency Solutions, Inc. (e) (j) (m) | Industrials |  | 10.00% PIK, 12/31/2026 | 1939 | 1074 | 446 | 0.0% |
| ORG GC Holdings, LLC (e) (m) | Business Services |  | 18.00% PIK, 11/29/2027 | 5877 | 5647 | 4999 | 0.3% |
| Pluto Acquisition I, Inc. (e) (n) | Healthcare |  | S+ 9.75% (14.18%) PIK, 12/20/2028 | 34968 | 29220 | 29373 | 1.5% |
| Therapy Brands Holdings, LLC (e) (n) | Healthcare |  | S+ 6.75% (11.22%), 5/18/2029 | 6601 | 6592 | 4944 | 0.3% |
| Victory Buyer, LLC (e) (n) | Industrials |  | S+ 7.00% (11.47%), 11/19/2029 | 45990 | 43914 | 43690 | 2.2% |
| **Subtotal Senior Secured Second Lien Debt** |  |  |  |  | $124474 | $121927 | 6.4% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| **Subordinated Debt - 10.4% (d)** | | | | | | | |
| Aventine Holdings, LLC (e) (n) | Media/Entertainment |  | 10.25% PIK, 6/18/2027 | $44062 | $43640 | $37531 | 2.0% |
| Post Road Equipment Finance, LLC (c) (e) (h) (l) | Financials |  | S+ 7.75% (12.41%), 12/31/2028 | 3000 | 2992 | 3000 | 0.2% |
| Post Road Equipment Finance, LLC (c) (e) (l) (s) (t) | Financials |  | S+ 7.75% (12.41%), 12/31/2028 | 62600 | 62614 | 62599 | 3.3% |
| Post Road Equipment Finance, LLC (c) (e) (l) (s) (t) | Financials |  | S+ 7.75% (12.41%), 12/31/2028 | 35000 | 34995 | 35000 | 1.8% |
| Siena Capital Finance, LLC (e) (l) | Financials |  | 12.50%, 4/25/2028 | 49500 | 49536 | 49500 | 2.6% |
| Smile Brands, Inc. (e) | Healthcare |  | S+ 12.50% (16.93%) 2.50% PIK, 10/12/2028 | 54 | 47 | 50 | 0.0% |
| WHCG Purchaser III, Inc. (e) (j) | Healthcare |  | 10.00% PIK, 6/30/2030 | 18496 | 8388 | 8738 | 0.5% |
| **Subtotal Subordinated Debt** |  |  |  |  | $202212 | $196418 | 10.4% |
| **Collateralized Securities - Debt Investments - 0.3% (d)** |  |  |  |  |  |  |  |
| NewStar Arlington Senior Loan Program, LLC 14-1A FR (a) (b) (e) (m) | Diversified Investment Vehicles | 1/24/2024 | S+ 11.00% (15.89%), 4/25/2031 | $4750 | $4206 | $4237 | 0.2% |
| Newstar Fairfield Fund CLO, Ltd. 2015-1RA F (a) (b) (e) (m) | Diversified Investment Vehicles | 1/24/2024 | S+ 7.50% (12.38%), 1/20/2027 | 2457 | 2317 | 2457 | 0.1% |
| Whitehorse, Ltd. 14-1A E (a) (b) (e) | Diversified Investment Vehicles | 1/24/2024 | S+ 4.55% (9.38%), 5/1/2026 | 1042 | 945 | 821 | 0.0% |
| **Sub Total Collateralized Securities - Debt Investments** |  |  |  |  | $7468 | $7515 | 0.3% |
| **Collateralized Securities - Equity Investments - 0.2% (d) (v)** |  |  |  |  |  |  |  |
| NewStar Arlington Senior Loan Program, LLC 14-1A SUB (a) (b) (e) (m) (u) | Diversified Investment Vehicles | 1/24/2024 | 6.66%, 4/25/2031 | $31603 | $3163 | $2170 | 0.1% |
| Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB (a) (b) (e) (m) (u) | Diversified Investment Vehicles | 1/24/2024 | 0.00%, 1/20/2027 | 31575 |  | 1208 | 0.1% |
| **Sub Total Collateralized Securities - Equity Investments** |  |  |  |  | $3163 | $3378 | 0.2% |
| **Equity/Other - 35.1% (d) (f)** |  |  |  |  |  |  |  |
| Black Mountain Sand, LLC (b) (e) (r) | Energy | 1/24/2024 |  | 55463 | $2174 | $1305 | 0.1% |
| Center Phase Energy, LLC (b) (e) (q) | Utilities | 6/23/2022 |  | 1680 | 1680 | 2386 | 0.1% |
| Cirque Du Soleil Holding USA Newco, Inc. (a) (b) (g) | Media/Entertainment | 1/24/2024 |  | 539708 | 5703 | 7016 | 0.4% |
| Cirque Du Soleil Holding USA Newco, Inc. (a) (b) (g) | Media/Entertainment | 1/24/2024 |  | 874000 | 2519 | 3132 | 0.2% |
| Clover Technologies Group, LLC (b) (e) (g) | Industrials | 1/24/2024 |  | 2753 | 341 | 628 | 0.0% |
| Clover Technologies Group, LLC (b) (e) (g) | Industrials | 1/24/2024 |  | 180274 |  |  | —% |
| Cornerstone Chemical, Co. (b) (e) (g) | Chemicals | 1/24/2024 |  | 327378 | 11626 | 10217 | 0.6% |
| CRS-SPV, Inc. (b) (e) (g) (m) | Industrials | 1/24/2024 |  | 246 | 1562 | 1704 | 0.1% |
| Danish CRJ, Ltd. (a) (b) (e) (g) (l) (w) | Transportation | 1/24/2024 |  | 5002 |  |  | —% |
| Dyno Acquiror, Inc. (b) (e) (g) | Consumer | 1/24/2024 |  | 134102 | 21 | 21 | 0.0% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| FBLC Senior Loan Fund, LLC (a) (b) (c) (e) (l) | Diversified Investment Vehicles | 1/24/2024 |  | 404934 | $405434 | $404934 | 21.2% |
| First Eagle Greenway Fund II, LLC (a) (b) (g) (m) | Diversified Investment Vehicles | 1/24/2024 |  | 5329 | 375 | 255 | 0.0% |
| Foresight Energy Operating, LLC (b) (e) (g) (r) | Energy | 1/24/2024 |  | 158093 | 3063 | 779 | 0.0% |
| Gordian Medical, Inc. (b) (e) (g) | Healthcare | 5/17/2024 |  | 157787 |  |  | —% |
| Gordian Medical, Inc. (b) (e) (g) (n) | Healthcare | 5/17/2024 |  | 162894 | 2962 | 2875 | 0.2% |
| Higginbotham Insurance Agency, Inc. (b) (e) (g) | Financials | 12/10/2024 | 10.50%, 11/25/2028 | 10199 | 10046 | 10046 | 0.5% |
| Integrated Efficiency Solutions, Inc. (b) (e) (g) (m) (r) | Industrials | 1/24/2024 |  | 57427 |  |  | —% |
| Integrated Efficiency Solutions, Inc. (b) (e) (g) (m) (r) | Industrials | 1/24/2024 |  | 55991 |  |  | —% |
| Internap Corp. (b) (e) (g) (n) | Business Services | 1/24/2024 |  | 1596606 | 1599 |  | —% |
| International Cruise & Excursion Gallery, Inc. (b) (e) (g) (p) | Business Services | 12/31/2024 |  | 179900 |  |  | —% |
| Kahala Aviation, LLC (b) (e) (g) (l) (x) (y) | Transportation | 10/2/2024 |  | 2200100 | 2814 | 2308 | 0.1% |
| Kahala US OpCo, LLC (a) (b) (e) (g) (l) (x) | Transportation | 1/24/2024 |  | 8869744 |  |  | —% |
| McDonald Worley, P.C. (b) (e) (g) | Business Services | 1/24/2024 |  | 20167 | 3118 | 3140 | 0.2% |
| MCS Acquisition Corp. (b) (e) (g) | Business Services | 1/24/2024 |  | 31521 | 748 | 747 | 0.0% |
| MCS Acquisition Corp. (b) (e) (g) | Business Services | 1/24/2024 |  | 324541 | 325 | 325 | 0.0% |
| MGTF Holdco, LLC (b) (e) (g) (l) (r) | Media/Entertainment | 1/24/2024 |  | 582300 |  |  | —% |
| Motor Vehicle Software Corp. (b) (e) (g) (z) | Business Services | 1/24/2024 |  | 223503 | 339 | 523 | 0.0% |
| Muth Mirror Systems, LLC (b) (e) (g) (r) | Technology | 1/24/2024 |  | 153038 |  |  | —% |
| Muth Mirror Systems, LLC (b) (e) (g) (r) | Technology | 1/24/2024 |  | 22819 |  |  | —% |
| ORG GC Holdings, LLC (b) (e) (g) (m) (r) | Business Services | 1/24/2024 |  | 1771 |  |  | —% |
| ORG GC Holdings, LLC (b) (e) (g) (m) (r) | Business Services | 1/24/2024 |  | 93380 |  |  | —% |
| PennantPark Credit Opportunities Fund II, LP (a) (b) (g) (m) | Diversified Investment Vehicles | 1/24/2024 |  | 8739 | 962 | 603 | 0.0% |
| Pluralsight, LLC (b) (e) (g) | Software/Services | 8/22/2024 |  | 2267044 | 5986 | 5985 | 0.3% |
| Point Broadband Acquisition, LLC (b) (e) (g) (q) (r) | Telecom | 10/1/2021 |  | 3710315 | 4941 | 4758 | 0.2% |
| Point Broadband Acquisition, LLC (b) (e) (g) (q) (r) | Telecom | 10/29/2024 |  | 164759 |  | 374 | 0.0% |
| Post Road Equipment Finance, LLC (b) (c) (e) (l) (q) (r) | Financials | 12/30/2021 |  | 186054 | 119502 | 119233 | 6.3% |
| Resolute Investment Managers, Inc. (b) (e) (g) | Financials | 1/24/2024 |  | 61958 | 2026 | 2022 | 0.1% |
| RMP Group, Inc. (b) (e) (g) (r) | Financials | 1/24/2024 |  | 223 | 333 | 263 | 0.0% |
| Siena Capital Finance, LLC (b) (e) (l) | Financials | 1/24/2024 |  | 41789400 | 77437 | 77310 | 4.1% |
| Skillsoft Corp. (g) | Technology |  |  | 12435 | 187 | 298 | 0.0% |
| Smile Brands, Inc. (b) (e) (g) | Healthcare | 1/24/2024 |  | 439 |  |  | —% |
| Squan Holding Corp. (b) (e) (g) | Telecom | 1/24/2024 |  | 180835 |  |  | —% |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (k) (o)** | **Industry** | **Acquisition Date** | **Investment Coupon Rate/ Maturity (i)** | **Principal/ Numbers of Shares** | **Amortized Cost** | **Fair Value** | **% of Net Assets (d)** |
| Tax Defense Network, LLC (b) (e) (g) | Consumer | 1/24/2024 |  | 147099 | $— | $— | —% |
| Tax Defense Network, LLC (b) (e) (g) | Consumer | 1/24/2024 |  | 633382 |  |  | —% |
| Tennenbaum Waterman Fund, LP (a) (b) (m) | Diversified Investment Vehicles | 1/24/2024 |  | 10000 | 6688 | 5802 | 0.3% |
| Travelpro Products, Inc. (a) (b) (e) (g) | Consumer | 1/24/2024 |  | 447007 | 913 | 751 | 0.0% |
| WHCG Purchaser III, Inc. (b) (e) (g) | Healthcare | 8/2/2024 |  | 5448273 |  |  | —% |
| World Business Lenders, LLC (b) (e) (g) | Financials | 1/24/2024 |  | 802865 | 1407 | 1405 | 0.1% |
| WPNT, LLC (b) (e) (g) (l) (r) | Media/Entertainment | 1/24/2024 |  | 582300 |  |  | —% |
| YummyEarth, Inc. (b) (e) (g) | Food & Beverage | 1/24/2024 |  | 781 |  |  | —% |
| **Subtotal Equity/Other** |  |  |  |  | $676831 | $671145 | 35.1% |
| **Total Investments - 207.6% (d)** |  |  |  |  | $**4053178** | $**3966075** | **207.6%** |

---

**Interest Rate Swap:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Company Receives** | **Company Pays** | **Counterparty** | **Maturity Date** | **Notional Amount** | **Fair Value** | **Change in Unrealized Appreciation/Depreciation** |
| S+ 0.097% | 4.14% | Wells Fargo, N.A | 1/1/2029 | $25000 | $– $– $|  |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;All of the Company's investments, except the investments noted by this footnote, are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act"). Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. At December 31, 2024, qualifying assets represent 88.5% of the Company's total assets.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Securities exempt from registration under the Securities Act of 1933 (as defined below), and may be deemed to be "restricted securities". As of December 31, 2024, the aggregate fair value of these securities is $688.5 million or 36.0% of the Company's net assets. The initial acquisition dates have been included for such securities.

(c)&nbsp;&nbsp;&nbsp;&nbsp;The Company's investment falls under the definition of a significant subsidiary, as it exceeded the threshold of at least one of the tests under Rule 4-08(g), or exceeded the threshold of at least one of the tests under Rule 3-09. See *[Note 3](#ica7834b2a94a41c89a6a99cf91879fe8_46)* for summarized financial information.

(d)&nbsp;&nbsp;&nbsp;&nbsp;Percentages are based on net assets attributable to common stock as of December 31, 2024.

(e)&nbsp;&nbsp;&nbsp;&nbsp;The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's Board of Directors (as defined below) as required by the 1940 Act. Such investments are valued using significant unobservable inputs (See *[Note 3](#ica7834b2a94a41c89a6a99cf91879fe8_46)* to the consolidated financial statements).

(f)&nbsp;&nbsp;&nbsp;&nbsp;All amounts are in thousands except share amounts.

(g)&nbsp;&nbsp;&nbsp;&nbsp;Non-income producing at December 31, 2024.

(h)&nbsp;&nbsp;&nbsp;&nbsp;Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. The investment may be subject to an unused/letter of credit facility fee. The negative fair value, if applicable, is the result of the capitalized discount on the loan or the unfunded commitment being valued below par. The negative amortized cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. Please refer to *[Note 7 - Commitments and Contingencies](#ica7834b2a94a41c89a6a99cf91879fe8_58)* for additional details.

(i)&nbsp;&nbsp;&nbsp;&nbsp;The majority of the investments bear interest at a rate that may be determined by reference Secured Overnight Financing Rate ("SOFR" or "S"), or Prime ("P") and which reset daily, monthly, quarterly, or semiannually. For each, the Company has provided the spread over the relevant reference rate and the current interest rate in effect at December 31, 2024. Certain investments are subject to reference rate floors. For fixed rate loans, a spread above a reference rate is not applicable. For funded floating rate securities, the all-in rate is disclosed within parentheses.

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

(j)&nbsp;&nbsp;&nbsp;&nbsp; The investment is on non-accrual status as of December 31, 2024.

(k)&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise indicated, all investments in the consolidated schedules of investments are non-affiliated, non-controlled investments.

(l)&nbsp;&nbsp;&nbsp;&nbsp;The provisions of the 1940 Act classify investments based on the level of control that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be "non-controlled" when the Company owns 25% or less of the portfolio company's outstanding voting securities and/or does not have the power to exercise control over the management or policies of such portfolio company. A company is generally presumed to be "controlled" when the Company owns more than 25% of the portfolio company's outstanding voting securities and/or has the power to exercise control over the management or policies of such portfolio company. The Company classifies this investment as "controlled".

(m)&nbsp;&nbsp;&nbsp;&nbsp;The provisions of the 1940 Act classify investments further based on the level of ownership that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as "non-affiliated" when the Company owns less than 5% of a portfolio company's outstanding voting securities and "affiliated" when the Company owns 5% or more of a portfolio company's outstanding voting securities. The Company classifies this investment as "affiliated".

(n)&nbsp;&nbsp;&nbsp;&nbsp;The Company's investment or a portion thereof is pledged as collateral under the JPM Credit Facility.

(o)&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise indicated, all of the Company's investments or a portion thereof are pledged as collateral under the JPM Revolver Facility.

(p)&nbsp;&nbsp;&nbsp;&nbsp;The Company's investment or a portion thereof is pledged as collateral under the Wells Fargo Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(q)&nbsp;&nbsp;&nbsp;&nbsp;Investments are held in the taxable wholly-owned, consolidated subsidiary, FBCC EEF Holdings LLC.

(r)&nbsp;&nbsp;&nbsp;&nbsp;Investments are held in the taxable wholly-owned, consolidated subsidiary, 54th Street Equity Holdings, Inc.

(s)&nbsp;&nbsp;&nbsp;&nbsp;The Company's investment or a portion thereof is held through a total return swap agreement with Nomura Global Financial Products Inc. ("Nomura").

(t)&nbsp;&nbsp;&nbsp;&nbsp;40% of the Company's investment is pledged as collateral under the total return swap agreement with Nomura.

(u)&nbsp;&nbsp;&nbsp;&nbsp;The Collateralized Securities - subordinated notes are treated as equity investments and are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund's securities less contractual payments to debt holders and fund expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized.

(v)&nbsp;&nbsp;&nbsp;&nbsp;For equity investments in Collateralized Securities, the effective yield is presented in place of the investment coupon rate for each investment. Refer to footnote (u) for a further description of an equity investment in a Collateralized Security.

(w)&nbsp;&nbsp;&nbsp;&nbsp;The Company's investment is held through the consolidated subsidiary, Kahala Aviation Holdings, LLC, which owns 49% of the operating company, Danish CRJ LTD.

(x)&nbsp;&nbsp;&nbsp;&nbsp;The Company's investment is held through the consolidated subsidiaries, Kahala Aviation Holdings, LLC and Kahala Aviation US, Inc., which own 100% of the equity of the operating company, Kahala US OpCo LLC.

(y)&nbsp;&nbsp;&nbsp;&nbsp;The Company's investment is held through the consolidated subsidiary, Kahala Aviation Holdings, LLC, which owns 100% of the equity of the operating company, Kahala Aviation, LLC.

(z)&nbsp;&nbsp;&nbsp;&nbsp;The investment is held through BSP TCAP Acquisition Holdings LP, which is an affiliated acquisition entity. Due to certain restrictions, such as limits on the number of partners allowable within the equity structures of the newly acquired investments, these investments are still held within the acquisition entity as of December 31, 2024.

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**CONSOLIDATED SCHEDULES OF INVESTMENTS**

**(dollars in thousands, except share and per share data)**

**December 31, 2024**

The following table shows the portfolio composition by industry grouping based on fair value at December 31, 2024:

---

| | | |
|:---|:---|:---|
| | **At December 31, 2024** | **At December 31, 2024** |
| | **Investments at Fair Value** | **Percentage of Total Portfolio** |
| Business Services | $643160 | 16.2% |
| Healthcare | 572836 | 14.4% |
| Financials | 516433 | 13.0% |
| Industrials | 444325 | 11.2% |
| Diversified Investment Vehicles <sup>(1)</sup> | 422487 | 10.7% |
| Software/Services | 407987 | 10.3% |
| Media/Entertainment | 202121 | 5.1% |
| Paper & Packaging | 174257 | 4.4% |
| Utilities | 145327 | 3.7% |
| Consumer | 121962 | 3.1% |
| Food & Beverage | 118852 | 3.0% |
| Chemicals | 101216 | 2.6% |
| Telecom | 44226 | 1.1% |
| Transportation | 25140 | 0.6% |
| Technology | 21197 | 0.5% |
| Energy | 3135 | 0.1% |
| Education | 1414 | 0.0% |
| Total | $3966075 | 100.0% |

---

<sup>_____________</sup>

<sup>(1)</sup> Includes the Company's investment in FBLC Senior Loan Fund, LLC, which represents 10.2% of the Company's investments at fair value as of December 31, 2024.

The accompanying notes are an integral part of these consolidated financial statements.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 1 - Organization**

Franklin BSP Capital Corporation (the "Company") is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company (a "BDC") under the Investment Company Act of 1940, as amended (the "1940 Act") and has elected to be treated for U.S. federal income tax purposes, and to qualify annually, as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). The Company was formed as a Delaware limited liability company on January 29, 2020 and converted to a Delaware corporation on September 23, 2020, pursuant to which Franklin BSP Capital Corporation succeeded to the business of Franklin BSP Capital L.L.C. The Company commenced investment operations on January 7, 2021.

The Company is managed by Franklin BSP Capital Adviser L.L.C. (the "Adviser"), a Delaware limited liability company and an affiliate of Benefit Street Partners L.L.C. ("Benefit Street Partners" or "BSP") pursuant to an investment advisory agreement (the "Investment Advisory Agreement"). The Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. The Adviser oversees the management of the Company's activities and is responsible for making investment decisions with respect to the Company's portfolio.

The Company's investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in first and second lien senior secured loans, and to a lesser extent, mezzanine loans, unsecured loans and equity of predominantly private U.S. middle market companies. The Company defines middle market companies as those with EBITDA of between $25 million and $100 million annually, although the Company may invest in larger or smaller companies. The Company also may purchase interests in loans or corporate bonds through secondary market transactions.

The Company conducted a private placement of shares of its common stock, par value $0.001 per share (the "Common Stock"), to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). Each investor in the private placement made a capital commitment (the "Capital Commitments") to purchase shares of Common Stock pursuant to a subscription agreement (a "Subscription Agreement"). Investors were required to make capital contributions to purchase shares of Common Stock (the "Drawdown Purchase Price") each time the Company delivers a drawdown notice (the "Drawdown Notice"), which were delivered at least ten business days prior to the required funding date, in an aggregate amount not to exceed their respective Capital Commitments.

The Company also conducted a private placement of shares of its preferred stock designated as series A convertible preferred stock (the "Series A Preferred Stock") in reliance on exemption from the registration requirements of the Securities Act. See *[Note 11 - Preferred Stock](#ica7834b2a94a41c89a6a99cf91879fe8_70)* for the terms of such preferred stock, including liquidation preference, distributions, and rights regarding conversion to shares of Common Stock.

On October 2, 2023, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Franklin BSP Lending Corporation, a Maryland corporation ("FBLC"), Franklin BSP Merger Sub, Inc., a Maryland corporation and a direct wholly-owned subsidiary of the Company ("Merger Sub"), and, solely for the limited purposes set forth therein, the Adviser. The Merger Agreement provides details on the purpose of the Mergers (as defined below) and sets forth that, subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the "Effective Time"), Merger Sub merged with and into FBLC (the "Merger"), with FBLC continuing as the surviving company and as a wholly-owned subsidiary of the Company. Immediately after the Effective Time, FBLC merged with and into the Company (together with the Merger, the "Mergers"), with the Company continuing as the surviving company. See *Note 19 – Merger with FBLC* for additional information about the Mergers. FBLC was managed by Franklin BSP Lending Adviser, L.L.C., a subsidiary of BSP since 2016.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 2 - Summary of Significant Accounting Policies**

*Basis of Presentation*

The following is a summary of significant accounting policies followed by the Company in the preparation of its consolidated financial statements. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The consolidated financial statements reflect all adjustments, both normal and recurring which, in the opinion of management, are necessary for the fair presentation of the Company's results of operations and financial condition for the periods presented. The Company is an investment company and accordingly applies specific accounting and financial reporting requirements under Financial Accounting Standards Codification ("ASC") *Topic 946, Financial Services-Investment Companies.*

We have also formed and expect to continue to form consolidated subsidiaries. The Company consolidates the following subsidiaries for accounting purposes: FBCC EEF Holdings LLC, FBCC Jupiter Funding, LLC ("Jupiter Funding"), FBLC Funding I, LLC ("Funding I") and 54th Street Equity Holdings, Inc. The Company owns 100% of the equity of Kahala Aviation Holdings, LLC and Kahala Aviation US, Inc., which are consolidated for accounting purposes. All intercompany balances and transactions have been eliminated in consolidation. Prior to October 4, 2023 and December 27, 2024, the Company also consolidated FBCC Lending I, LLC and FBLC 57th Street Funding LLC ("57th Street"), respectively. Refer to *Note 5 - Borrowings* for additional information.

Certain prior period information has been reclassified to conform to the current period presentation. The reclassification has no effect on the Company's financial position or result of operations as previously reported.

*Use of Estimates*

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in these consolidated financial statements. Actual results could differ from those estimates.

*Consolidation*

As provided under *ASC 946*, the Company will generally not consolidate its investment in a company other than a substantially or wholly-owned investment company or controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the accounts of the Company's substantially wholly-owned subsidiaries in its consolidated financial statements. Although the Company owns more than 25% of the voting securities of FBLC Senior Loan Fund, LLC, ("SLF"), the Company does not have sole control over significant actions of SLF for purposes of assessing consolidation under U.S. GAAP, and thus does not consolidate its interest.

*Valuation of Portfolio Investments*

Portfolio investments are reported on the consolidated statements of assets and liabilities at fair value. The board of directors (the "Board of Directors") has delegated to the Adviser as valuation designee (the "Valuation Designee") the responsibility of determining the fair value of the Company's investment portfolio, subject to oversight of the Board of Directors, pursuant to Rule 2a-5 under the 1940 Act. As such, the Valuation Designee is charged with determining the fair value of the Company's investment portfolio, subject to oversight of the Board of Directors. On a quarterly basis, the Valuation Designee performs an analysis of each investment to determine fair value as follows:

Securities for which market quotations are readily available on an exchange are valued at the reported closing price on the valuation date. The Valuation Designee may also obtain quotes with respect to certain of the Company's investments from pricing services or brokers or dealers in order to value assets. When doing so, the Valuation Designee determines whether the quote obtained is readily available according to U.S. GAAP to determine the fair value of the security. If determined to be readily available, the Valuation Designee uses the quote obtained.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

Investments without a readily determined market value are primarily valued using a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that the Valuation Designee may take into account in fair value pricing the Company's investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company's ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process.

With respect to investments for which market quotations are not readily available, the Valuation Designee undertakes a multi-step valuation process each quarter, as described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Each portfolio company or investment will be valued by the Valuation Designee, with assistance from one or more independent valuation firms engaged by the Company's Board of Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The independent valuation firm(s) conduct independent appraisals and make an independent assessment of the value of each investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Valuation Designee, under the supervision of the Board of Directors, determines the fair value of each investment, in good faith, based on the input of independent valuation firms (to the extent applicable) and the Valuation Designee's own analysis. The Valuation Designee also has established a valuation committee to assist the Valuation Designee in carrying out its designated responsibilities, subject to oversight of the Board of Directors.

For an investment in an investment fund that does not have a readily determinable fair value, the Valuation Designee measures the fair value of the investment predominantly based on the net asset value per share of the investment fund if the net asset value of the investment fund is calculated in a manner consistent with the measurement principles of *ASC 946*, as of the Company's measurement date. However, there can be no assurance that the Company will be able to sell such investment at a price equal to its net asset value per share and the Company may ultimately sell such investment at a discount to its net asset value per share.

The Company's investments in funds that offer periodic liquidity have redemption frequencies which range from monthly to quarterly and redemption notice periods which range from 30 to 90 days. Investments in private equity typically do not offer liquidity and instead, capital is returned through periodic distributions.

Because there is not a readily available market value for most of the investments in its portfolio, the Valuation Designee values substantially all of its portfolio investments at fair value as determined in good faith by its Board of Directors, as described herein. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company's investments may fluctuate from period to period. Additionally, the fair value of the Company's investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, the Company could realize significantly less than the value at which the Company has recorded it.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

*Investment Classification*

The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, "Control" is defined as the power to exercise a controlling influence over the management or policies of a company, unless such power is solely the result of an official position with such company. In addition, any person who owns beneficially, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of a company and/or has the power to exercise control over the management or policies of such portfolio company shall be presumed to control such company. Typically, any person who does not so own more than 25% of the outstanding voting securities of any company and/or does not have the power to exercise control over the management or policies of such portfolio company shall be presumed not to control such company. Consistent with the 1940 Act, "Affiliated Investments" are defined as those investments in companies in which the Company owns 5% or more of the outstanding voting securities. Consistent with the 1940 Act, "Non-Affiliated Investments" are defined as investments that are neither Control Investments nor Affiliated Investments.

*Cash, Cash Equivalents and Restricted Cash*

Cash and cash equivalents include cash held in banks and short-term, liquid investments in a money market deposit account. Restricted cash is collected and held by the trustee who has been appointed as custodian of the assets securing certain of the Company's financing transactions. Restricted cash is held by the trustees for payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets. Cash, cash equivalents and restricted cash are carried at cost which approximates fair value.

*Organization and Offering Costs*

Organization costs consist of costs incurred to establish the Company and enable it legally to do business. Organization costs are expensed as incurred. Offering costs consist of costs incurred in connection with the offering of common shares of the Company. Offering costs are capitalized as a deferred charge and amortized to expense on a straight-line basis over 12 months from the commencement of operations.

The Company will bear the organization and offering expenses incurred in connection with the formation of the Company and the offering of shares of its Common Stock, including the out-of-pocket expenses of the Adviser and its agents and affiliates. In addition, the Company will reimburse the Adviser for the organization and offering costs it incurs on the Company's behalf. If actual organization and offering costs incurred exceed the greater of $1 million or 0.10% of the Company's total capital commitments, the Adviser or its affiliate will bear the excess costs. To the extent the Company's capital commitments later increase, the Adviser or its affiliates may be reimbursed for past payments of excess organization and offering costs made on the Company's behalf provided that the total organization and offering costs borne by the Company do not exceed 0.10% of total capital commitments and provided further that the Adviser or its affiliates may not be reimbursed for payment of excess organization and offering expenses that were incurred more than three years prior to the proposed reimbursement. For the three and nine months ended September 30, 2025 and 2024, there were no reimbursements from the Adviser.

In connection with the Company's private placement of shares of its Series A Preferred Stock, the Company incurred various offering costs. These costs are capitalized as a deferred cost and included within redeemable convertible preferred stock Series A on the consolidated statement of assets and liabilities as the preferred shares are issued. The costs are not subject to reimbursement from the Adviser.

*Deferred Financing Costs*

Financing costs incurred in connection with the Company's unsecured notes and revolving credit facilities are capitalized and amortized into expense using the straight-line method, which approximates the effective yield method over the life of the respective facility. See *[Note 5 - Borrowings](#ica7834b2a94a41c89a6a99cf91879fe8_52)*.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

*Convertible Preferred Stock*

We record shares of convertible preferred stock based on proceeds received net of offering costs on the date of issuance. Redeemable preferred stock (including preferred stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control) is classified as temporary equity and is reported separately from liabilities and net assets attributable to common stock within the consolidated statements of assets and liabilities.

*Distributions*

The Company's Board of Directors authorizes and declares cash distributions payable on a quarterly basis to stockholders of record on each record date. The amount of each such distribution is subject to the discretion of the Board of Directors and applicable legal restrictions related to the payment of distributions. The Company calculates each stockholder's specific distribution amount for the quarter using record and declaration dates. From time to time, the Company may also pay interim distributions, including capital gains distributions, at the discretion of the Company's Board of Directors. The Company's distributions may exceed earnings, especially during the period before it has substantially invested the proceeds from the offering. As a result, a portion of the distributions made by the Company may represent a return of capital for U.S. federal income tax purposes. A return of capital is a return of each stockholder's investment rather than earnings or gains derived from the Company's investment activities.

The Company may fund cash distributions to stockholders from any sources of funds available to the Company, including advances from the Adviser that are subject to reimbursement, as well as offering proceeds, borrowings, net investment income from operations, capital gain proceeds from the sale of assets, and non-capital gain proceeds from the sale of assets. The Company has not established limits on the amount of funds it may use from available sources to make distributions. See *[Note 15 - Income Tax Information and Distributions to Stockholders](#ica7834b2a94a41c89a6a99cf91879fe8_82)* for additional information.

***Revenue Recognition***

*Interest Income*

Investment transactions are accounted for on the trade date. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Discount and premium on investments purchased are accreted/amortized over the expected life of the respective investment using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discount and amortization of premium on investments.

The Company has a number of investments in Collateralized Securities. Interest income from investments in the "equity" class of these Collateralized Securities (in the Company's case, preferred shares or subordinated notes) is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows, in accordance with *ASC 325-40, Beneficial Interests in Securitized Financial Assets* ("ASC 325-40"). The Company monitors the expected cash inflows from its equity investments in Collateralized Securities, including the expected principal repayments. The effective yield is determined and updated quarterly. When the Company determines that a CLO's cash flows will not be recovered, the amortized cost basis of the CLO is written down as of the date of the determination based on events and information evaluated and that write-down is recognized as a realized loss.

*Dividend Income*

Dividend income on preferred equity investments is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity investments is recorded on the record date for private portfolio companies and on the ex-dividend date for publicly traded portfolio companies.

Dividend income from SLF is recorded on accrual basis once dividends are declared by SLF's board of directors. Distributions from SLF are evaluated at the time of distribution to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions as dividend income unless there are sufficient accumulated tax-basis earnings and profit in SLF prior to distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

*Fee Income*

Fee income, such as structuring fees, origination, closing, amendment fees, commitment, termination, and other upfront fees are generally non-recurring and are recognized as income when earned, either upon receipt or amortized into income. Upon the re-payment of a loan or debt security, any prepayment penalties and unamortized loan origination, structuring, closing, commitment, and other upfront fees are recorded as income.

*Payment-in-Kind Interest/Dividends*

The Company may hold debt and equity investments in its portfolio that contain payment-in-kind ("PIK") interest and dividend provisions. PIK interest and PIK dividends, which represent contractually deferred interest or dividends that add to the investment balance that is generally due at maturity, are recorded on accrual basis to the extent such amounts are expected to be collected.

*Non-Accrual Income*

Investments may be placed on non-accrual status when principal or interest payments are past due and/or when there is reasonable doubt that principal or interest will be collected. Accrued interest, which may include un-capitalized PIK interest is generally reversed when an investment is placed on non-accrual status. Previously capitalized PIK interest is not reversed when an investment is placed on non-accrual status. Interest payments received on non-accrual investments may be recognized as income or applied to principal depending upon management's judgment of the ultimate outcome. Non-accrual investments are restored to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain current.

*Net Realized Gain or Loss and Net Change in Unrealized Appreciation or Depreciation*

Gain or loss on the sale of investments is calculated using the specific identification method. The Company measures realized gain or loss by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when a gain or loss is realized.

***Income Taxes***

The Company has elected to be treated for federal income tax purposes as a RIC under Subchapter M of the Code. Generally, a RIC is not subject to federal income taxes in respect of each taxable year if it distributes dividends for federal income tax purposes to stockholders of an amount generally equal to at least 90% of its "investment company taxable income", as defined in the Code, and determined without regard to any deduction for dividends paid. Distributions declared prior to the filing of the previous year's tax return and paid up to twelve months after the previous tax year can be carried back to the prior tax year in determining the distributions paid in such tax year. The Company intends to make sufficient distributions to maintain its ability to be subject to be taxed as a RIC each year. The Company may be subject to federal excise tax imposed at a rate of 4% on certain undistributed amounts.

The Company evaluates tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether it is "more-likely-than-not" (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Company did not record any tax provision in the current period. However, management's conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities on-going analysis of and changes to tax laws, regulations and interpretations thereof. See *[Note 15 - Income Tax Information and Distributions to Stockholders](#ica7834b2a94a41c89a6a99cf91879fe8_82)* for additional information.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

***Recent Accounting Pronouncements***

In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740)," which updates annual income tax disclosure requirements related to rate reconciliation, income taxes paid and other disclosures. ASU 2023-09 is effective for public business entities for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the impact of adopting ASU No. 2023-09 on the consolidated annual financial statements.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures", which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, amortization and depletion, within relevant income statement captions. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning with the first quarter ended March 31, 2028. Early adoption and retrospective application is permitted. The Company is currently evaluating the impact of adopting ASU No. 2024-03 on the consolidated annual financial statements.

**Note 3 - Fair Value of Financial Instruments**

The Company's fair value measurements are classified into a fair value hierarchy in accordance with *ASC Topic 820, Fair Value Measurement*, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. This alternative approach also reflects the contractual terms of the derivatives, if any, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The guidance defines three levels of inputs that may be used to measure fair value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter.

For investments for which Level 1 inputs, such as quoted prices, were not available at September 30, 2025 and December 31, 2024, the investments were valued at fair value as determined in good faith using the valuation policy approved by the Board of Directors using Level 2 and Level 3 inputs. The Company evaluates the source of inputs, including any markets in which the Company's investments are trading, in determining fair value. Due to the inherent uncertainty in the valuation process, the estimate of fair value of the Company's investment portfolio at September 30, 2025 and December 31, 2024 may differ materially from values that would have been used had a ready market for the securities existed.

In addition to using the above inputs in investment valuations, the Company continues to employ the valuation policy approved by the Board of Directors. Portfolio investments are reported on the consolidated statements of assets and liabilities at fair value. On a quarterly basis the Company performs an analysis of each investment to determine fair value as described below.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

Securities for which market quotations are readily available on an exchange are valued at the reported closing price on the valuation date. The Company may also obtain quotes with respect to certain of the Company's investments from pricing services or brokers or dealers in order to value assets. When doing so, the Company determines whether the quote obtained is readily available according to U.S. GAAP to determine the fair value of the security. If determined readily available, the Company uses the quote obtained.

Investments without a readily determined market value are primarily valued using a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that the Valuation Designee may take into account in fair value pricing the Company's investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company's ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process.

For an investment in an investment fund that does not have a readily determinable fair value, the Valuation Designee measures the fair value of the investment predominantly based on the net asset value per share of the investment fund if the net asset value of the investment fund is calculated in a manner consistent with the measurement principles of *ASC Topic 946*, as of the Company's measurement date.

For investments in Collateralized Securities, the Valuation Designee models both the assets and liabilities of each Collateralized Securities' capital structure. The model uses a waterfall engine to store the collateral data, generate cash flows from the assets, and distribute the cash flows to the liability structure based on the contractual priority of payments. The cash flows are discounted using rates that incorporate risk factors such as default risk, interest rate risk, downgrade risk, and credit spread risk, among others. In addition, the Valuation Designee considers broker quotations and/or comparable trade activity, which are considered as inputs to determining fair value when available.

As part of the Company's quarterly valuation process, the Valuation Designee may be assisted by one or more independent valuation firms. The Valuation Designee under the supervision of the Board of Directors determines the fair value of each investment, in good faith, based on the input of the independent valuation firm(s) (to the extent applicable) and the Valuation Designee's own analysis.

Determination of fair values involves subjective judgments and estimates. Accordingly, the notes to the consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations on the consolidated financial statements.

For discussion of the fair value measurement of the Company's borrowings, refer to *[Note 5 - Borrowings](#ica7834b2a94a41c89a6a99cf91879fe8_52)*.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

The following table presents fair value measurements of investments, by major class, as of September 30, 2025, according to the fair value hierarchy:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| | **Level 1** | **Level 2** | **Level 3** | **Measured at Net Asset Value** <sup>(1)</sup> | **Total** |
| Senior Secured First Lien Debt | $— | $6399 | $3125015 | $— | $3131414 |
| Senior Secured Second Lien Debt |  | 41491 | 96340 |  | 137831 |
| Subordinated Debt |  |  | 230466 |  | 230466 |
| Collateralized Securities |  |  | 5805 |  | 5805 |
| Equity/Other | 177 | 6566 | 262999 | 1304 | 271046 |
| FBLC Senior Loan Fund, LLC |  |  | 304934 |  | 304934 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $177 | $54456 | $4025559 | $1304 | $4081496 |

---

<sup>(1)</sup> In accordance with *ASC Subtopic 820-10*, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient election have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of assets and liabilities.

The following table presents fair value measurements of investments, by major class, as of December 31, 2024, according to the fair value hierarchy:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| | **Level 1** | **Level 2** | **Level 3** | **Measured at Net Asset Value** <sup>(1)</sup> | **Total** |
| Senior Secured First Lien Debt | $— | $78986 | $2886706 | $— | $2965692 |
| Senior Secured Second Lien Debt |  | 18559 | 103368 |  | 121927 |
| Subordinated Debt |  |  | 196418 |  | 196418 |
| Collateralized Securities |  |  | 10893 |  | 10893 |
| Equity/Other | 298 | 10148 | 249105 | 6660 | 266211 |
| FBLC Senior Loan Fund, LLC |  |  | 404934 |  | 404934 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $298 | $107693 | $3851424 | $6660 | $3966075 |

---

<sup>(1)</sup> In accordance with *ASC Subtopic 820-10*, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient election have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of assets and liabilities.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the nine months ended September 30, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Senior Secured First Lien Debt** | **Senior Secured Second Lien Debt** | **Subordinated Debt** | **Collateralized Securities** | **Equity/Other** <sup>(1)</sup> | **Total** |
| Balance as of January 1, 2025 | $2886706 | $103368 | $196418 | $10893 | $654039 | $3851424 |
| Purchases and other adjustments to cost | 748880 | 5570 | 70578 | 71 | 16954 | 842053 |
| Sales and repayments | (536049) | 405 | (36749) | (3267) | (94516) | (670176) |
| Net realized gain (loss) | (7389) | 131 |  | 190 | (531) | (7599) |
| Transfers in | 51211 |  |  |  |  | 51211 |
| Transfers out |  | (7980) |  |  |  | (7980) |
| Net change in unrealized appreciation (depreciation) on investments | (18344) | (5154) | 219 | (2082) | (8013) | (33374) |
| Balance as of September 30, 2025 | $3125015 | $96340 | $230466 | $5805 | $567933 | $4025559 |
| Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: | $(28021) | $(4357) | $219 | $(1942) | $(8881) | $(42982) |

---

*_______________*

<sup>(1)</sup> Includes the Company's investment in FBLC Senior Loan Fund, LLC.

For the nine months ended September 30, 2025, transfers from Level 2 to Level 3 were due to current assessments of investment liquidity and a decrease in the number of observable market inputs. For the nine months ended September 30, 2025, transfers from Level 3 to Level 2 were due to an increase in the number of observable market inputs.

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Senior Secured First Lien Debt** | **Senior Secured Second Lien Debt** | **Subordinated Debt** | **Collateralized Securities** | **Equity/Other** <sup>(1)</sup> | **Total** |
| Balance as of January 1, 2024 | $615704 | $39153 | $35500 | $— | $36176 | $726533 |
| Purchases and other adjustments to cost <sup>(2)</sup> | 2914625 | 119997 | 174933 | 21680 | 617331 | 3848566 |
| Sales and repayments | (554440) | (53294) | (8114) | (11872) | 6056 | (621664) |
| Net realized gain (loss) | (25740) | 280 | (13) | 823 | 1485 | (23165) |
| Transfers out | (4572) | (2361) |  |  |  | (6933) |
| Net change in unrealized appreciation (depreciation) on investments | (58871) | (407) | (5888) | 262 | (7009) | (71913) |
| Balance as of December 31, 2024 | $2886706 | $103368 | $196418 | $10893 | $654039 | $3851424 |
| Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the year: | $(66259) | $(1542) | $(5888) | $262 | $(6359) | $(79786) |

---

*_______________*

<sup>(1)</sup> Includes the Company's investment in FBLC Senior Loan Fund, LLC.

<sup>(2)</sup> Includes investments acquired in connection with the Mergers.

For the year ended December 31, 2024, there were no transfers from Level 2 to Level 3. For the year ended December 31, 2024, transfers from Level 3 to Level 2 were due to an increase in the number of observable market inputs.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

The composition of the Company's investments as of September 30, 2025, at amortized cost and fair value, were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Investments at Amortized Cost** | **Investments at Fair Value** | **Fair Value Percentage of Total Portfolio** |
| Senior Secured First Lien Debt | $3223667 | $3131414 | 76.8% |
| Senior Secured Second Lien Debt | 144567 | 137831 | 3.4 |
| Subordinated Debt | 236038 | 230466 | 5.6 |
| Collateralized Securities | 7626 | 5805 | 0.1 |
| Equity/Other | 288445 | 271046 | 6.6 |
| FBLC Senior Loan Fund, LLC | 305270 | 304934 | 7.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $4205613 | $4081496 | 100.0% |

---

The composition of the Company's investments as of December 31, 2024, at amortized cost and fair value, were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Investments at Amortized Cost** | **Investments at Fair Value** | **Fair Value Percentage of Total Portfolio** |
| Senior Secured First Lien Debt | $3039030 | $2965692 | 74.7% |
| Senior Secured Second Lien Debt | 124474 | 121927 | 3.1 |
| Subordinated Debt | 202212 | 196418 | 5.0 |
| Collateralized Securities | 10631 | 10893 | 0.3 |
| Equity/Other | 271397 | 266211 | 6.7 |
| FBLC Senior Loan Fund, LLC | 405434 | 404934 | 10.2 |
| Total | $4053178 | $3966075 | 100.0% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

***Significant Unobservable Inputs***

The following table summarizes the significant unobservable inputs used to value the Level 3 investments as of September 30, 2025. The table is not intended to be all-inclusive, but instead identifies the significant unobservable inputs relevant to the determination of fair values.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Range** | **Range** | |
|<br>**Asset Category** |<br>**Fair Value** |<br>**Primary Valuation Technique** |<br>**Unobservable Inputs** | **Minimum** | **Maximum** |<br>**Weighted Average** <sup>(a)</sup> |
| Senior Secured First Lien Debt | $2930710 | Yield Analysis | Market Yield | 7.10% | 52.67% | 10.45% |
| Senior Secured First Lien Debt <sup>(c)</sup> | 116840 | N/A | N/A | N/A | N/A | N/A |
| Senior Secured First Lien Debt | 43454 | Waterfall Analysis | EBITDA Multiple | 3.78x | 15.67x | 6.13x |
| Senior Secured First Lien Debt | 34011 | Waterfall Analysis | Revenue Multiple | 0.20x | 0.58x | 0.27x |
| Senior Secured Second Lien Debt | 58430 | Yield Analysis | Market Yield | 11.90% | 24.50% | 13.60% |
| Senior Secured Second Lien Debt | 37910 | Waterfall Analysis | EBITDA Multiple | 7.00x | 15.67x | 10.49x |
| Senior Secured Second Lien Debt <sup>(b)</sup> |  | Waterfall Analysis | Revenue Multiple | 0.28x | 0.28x | 0.28x |
| Subordinated Debt | 151101 | Waterfall Analysis | Tangible Net Asset Value Multiple | 1.20x | 1.60x | 1.46x |
| Subordinated Debt <sup>(b)</sup> | 39455 | Yield Analysis | Market Yield | 14.00% | 14.00% | 14.00% |
| Subordinated Debt <sup>(b)</sup> | 30486 | Waterfall Analysis | Market Yield | 9.45% | 9.45% | 9.45% |
| Subordinated Debt | 9424 | Waterfall Analysis | EBITDA Multiple | 7.00x | 11.00x | 10.12x |
| Collateralized Securities <sup>(b)</sup> | 4409 | Yield Analysis | Discount Margin | 18.70% | 18.70% | 18.70% |
| Collateralized Securities <sup>(b)</sup> | 808 | Yield Analysis | Market Yield | 70.00% | 70.00% | 70.00% |
| Collateralized Securities <sup>(d)</sup> | 588 | Waterfall Analysis | Asset Price | $0.25 | $0.55 | $0.51 |
| Equity/Other | 205980 | Waterfall Analysis | Tangible Net Asset Value Multiple | 1.20x | 1.60x | 1.45x |
| Equity/Other | 27843 | Waterfall Analysis | EBITDA Multiple | 2.35x | 24.00x | 12.15x |
| Equity/Other | 12381 | Yield Analysis | Market Yield | 10.12% | 11.57% | 11.30% |
| Equity/Other <sup>(b)</sup> | 10330 | Waterfall Analysis | Market Yield | 9.45% | 9.45% | 9.45% |
| Equity/Other | 4829 | Waterfall Analysis | Revenue Multiple | 0.20x | 1.60x | 1.60x |
| Equity/Other <sup>(b)</sup> | 1615 | Waterfall Analysis | Adjusted BV Multiple | 4.01x | 4.01x | 4.01x |
| Equity/Other <sup>(c)</sup> | 21 | N/A | N/A | N/A | N/A | N/A |
| FBLC Senior Loan Fund, LLC <sup>(b)</sup> | 304934 | Discounted Cash Flow | Discount Rate | 12.30% | 12.30% | 12.30% |
| Total | $4025559 |  |  |  |  |  |

---

______________

<sup>(a)</sup> Weighted averages are calculated based on fair value of investments.

<sup>(b)</sup> This asset category contains one investment.

<sup>(c)</sup> Investment(s) were valued based on recent or pending transactions expected to close after the valuation date.

<sup>(d)</sup> Range and weighted average shown in millions.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

There were no significant changes in valuation approach or technique as of September 30, 2025.

The following table summarizes the significant unobservable inputs used to value of the Level 3 investments as of December 31, 2024. The table is not intended to be all-inclusive, but instead identifies the significant unobservable inputs relevant to the determination of fair values.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Range** | **Range** | |
|<br>**Asset Category** |<br>**Fair Value** |<br>**Primary Valuation Technique** |<br>**Unobservable Inputs** | **Minimum** | **Maximum** |<br>**Weighted Average** <sup>(a)</sup> |
| Senior Secured First Lien Debt | $2491243 | Yield Analysis | Market Yield | 0.00% | 47.67% | 10.66% |
| Senior Secured First Lien Debt <sup>(c)</sup> | 243056 | N/A | N/A | N/A | N/A | N/A |
| Senior Secured First Lien Debt | 120533 | Waterfall Analysis | EBITDA Multiple | 5.30x | 19.83x | 13.73x |
| Senior Secured First Lien Debt | 31874 | Waterfall Analysis | Revenue Multiple | 0.20x | 0.55x | 0.28x |
| Senior Secured Second Lien Debt | 95003 | Yield Analysis | Market Yield | 13.75% | 19.30% | 16.20% |
| Senior Secured Second Lien Debt | 7919 | Waterfall Analysis | EBITDA Multiple | 4.75x | 7.50x | 6.49x |
| Senior Secured Second Lien Debt <sup>(b)</sup> | 446 | Waterfall Analysis | Revenue Multiple | 0.41x | 0.41x | 0.41x |
| Subordinated Debt | 150098 | Waterfall Analysis | Tangible Net Asset Value Multiple | 1.28x | 1.58x | 1.48x |
| Subordinated Debt <sup>(b)</sup> | 37532 | Yield Analysis | Market Yield | 13.66% | 13.66% | 13.66% |
| Subordinated Debt | 8788 | Waterfall Analysis | EBITDA Multiple | 9.83x | 11.50x | 9.84x |
| Collateralized Securities | 6407 | Yield Analysis | Discount Rate | 0.53% | 15.15% | 10.20% |
| Collateralized Securities <sup>(d)</sup> | 4486 | Waterfall Analysis | Asset Recovery | $2.69 | $2.75 | $2.74 |
| Equity/Other | 196541 | Waterfall Analysis | Tangible Net Asset Value Multiple | 1.28x | 1.58x | 1.46x |
| Equity/Other | 34572 | Waterfall Analysis | EBITDA Multiple | 0.00x | 27.50x | 8.51x |
| Equity/Other <sup>(c)</sup> | 12354 | N/A | N/A | N/A | N/A | N/A |
| Equity/Other | 4212 | Yield Analysis | Market Yield | 8.07% | 11.75% | 9.01% |
| Equity/Other <sup>(b)</sup> | 1405 | Waterfall Analysis | Adjusted BV Multiple | 2.25x | 2.25x | 2.25x |
| Equity/Other | 21 | Waterfall Analysis | Revenue Multiple | 0.20x | 0.41x | 0.32x |
| FBLC Senior Loan Fund, LLC <sup>(b)</sup> | 404934 | Discounted Cash Flow | Discount Rate | 12.96% | 12.96% | 12.96% |
| Total | $3851424 |  |  |  |  |  |

---

______________

<sup>(a)</sup> Weighted averages are calculated based on fair value of investments.

<sup>(b)</sup> This asset category contains one investment.

<sup>(c)</sup> Investment(s) were valued based on recent or pending transactions expected to close after the valuation date.

<sup>(d)</sup> Range and weighted average shown in millions.

There were no significant changes in valuation approach or technique as of December 31, 2024.

Level 3 inputs to the valuation methodology are unobservable and significant to overall fair value measurement. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category include investments in privately held entities where the fair value is based on unobservable inputs.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

Increases or decreases in any of the above unobservable inputs in isolation would result in a lower or higher fair value measurement for such assets.

The income and market approaches were used in the determination of fair value of certain Level 3 assets as of September 30, 2025 and December 31, 2024. The significant unobservable inputs used in the income approach are the discount rate or market yield used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. An increase in the discount rate or market yield would result in a decrease in the fair value. Included in the consideration and selection of discount rates is risk of default, rating of the investment, call provisions and comparable company investments. The significant unobservable inputs used in the market approach are based on market comparable transactions and market multiples of publicly traded comparable companies. Increases or decreases in market comparable transactions or market multiples would result in an increase or decrease, respectively, in the fair value.

Valuations of loans, corporate debt, and other debt obligations are generally based on discounted cash flow techniques, for which the significant inputs are the amount and timing of expected future cash flows, market yields and recovery assumptions. The significant inputs are generally determined based on relative value analysis, which incorporate comparisons to other debt instruments for which observable prices or broker quotes are available. Other valuation methodologies are used as appropriate including market comparables, transactions in similar instruments and recovery/liquidation analysis. The Company also considers the use of EBITDA multiples, revenue multiples, tangible net asset value multiples, TBV multiples, and other relevant multiples on its debt and equity investments to determine any credit gains or losses in certain instances. Increases or decreases in either of these inputs in isolation may result in a significantly lower or higher fair value measurement of the respective subject instrument.

As of September 30, 2025, the Company had nine portfolio companies on non-accrual status with a total amortized cost of $144.5 million and fair value of $76.3 million, which represented 3.4% and 1.9% of the investment portfolio's total amortized cost and fair value, respectively. As of December 31, 2024, the Company had eight portfolio companies on non-accrual status with a total amortized cost of $105.1 million and fair value of $65.5 million, which represented 2.6% and 1.7% of the investment portfolio's total amortized cost and fair value, respectively. Refer to *[Note 2 - Summary of Significant Accounting Policies](#ica7834b2a94a41c89a6a99cf91879fe8_43)* for additional details regarding the Company's non-accrual policy.

**FBLC Senior Loan Fund, LLC**

On January 24, 2024, as a result of the consummation of the Mergers, the Company became party to the joint venture formed on January 20, 2021, between FBLC and Cliffwater Corporate Lending Fund ("CCLF"), FBLC Senior Loan Fund, LLC ("SLF"). SLF invests primarily in senior secured loans, and to a lesser extent may invest in mezzanine loans, unsecured loans and equity of predominantly private U.S. middle market companies. SLF was formed as a Delaware limited liability company and is not consolidated by the Company for financial reporting purposes. The Company provides capital to SLF in the form of LLC equity interests. At formation, FBLC and CCLF owned 87.5% and 12.5%, respectively, of the LLC equity interests of SLF. On July 2, 2024, the Company contributed $100.0 million of additional capital into SLF. On February 28, 2025, SLF distributed $100.0 million to the Company as a return of capital. As of September 30, 2025, the Company and CCLF owned 80.0% and 20.0%, respectively, of the LLC equity interests of SLF. Profit and loss are allocated based on each members' ownership percentage of the joint venture's net asset value. SLF has an Administrative and Loan Services Agreement with BSP, an affiliate of the Company, pursuant to which BSP provides certain operational and valuation services for SLF's investments; as well as certain agreements with third-party service providers. The Company and CCLF each appoint two members to SLF's four-person board of members. All material decisions with respect to SLF, including those involving its investment portfolio, require unanimous approval of a quorum of the board of members. Quorum is defined as (i) the presence of two members of the board of members; provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of members; provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the board of members; provided that two individuals are present that were elected, designated or appointed by each member.

As of September 30, 2025, the Company's investment in SLF consisted of equity contributions of $304.9 million. The Company's investment in SLF is classified as "Equity/Other" on the consolidated schedules of investments, and other disclosures unless otherwise indicated.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

Below is a summary of SLF's portfolio as of September 30, 2025 and December 31, 2024. A listing of the individual investments in SLF's portfolio as of such dates can be found below:

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Total assets | $949486 | $1151336 |
| Total investments <sup>(1)</sup> | $920991 | $1103160 |
| Weighted Average Current Yield for Total Portfolio <sup>(2)</sup> | 8.4% | 9.1% |
| Number of Portfolio companies in SLF | 175 | 210 |
| Largest portfolio company investment <sup>(1)</sup> | $17244 | $17223 |
| Total of five largest portfolio company investments <sup>(1)</sup> | $70571 | $72582 |

---

————————

<sup>(1)</sup> At fair value.

<sup>(2)</sup> Includes the effect of the amortization or accretion of loan premiums or discounts.

SLF may invest in portfolio companies in the same industries in which the Company directly invests.

Below is a listing of SLF's individual investments as of September 30, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| **Senior Secured First Lien Debt** | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;AAdvantage Loyality IP, Ltd. (f) | Transportation | S+ 2.25% (6.58%) | 4/20/2028 | $4000 | $3997 | $3992 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Acrisure, LLC (b) | Financials | S+ 3.25% (7.41%) | 6/21/2032 | 7169 | 7109 | 7154 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Acrisure, LLC | Financials | 4.25% | 2/15/2029 | 5000 | 4623 | 4819 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adtalem Global Education, Inc. (f) | Education | S+ 2.75% (6.91%) | 8/14/2028 | 352 | 352 | 353 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Air Canada | Transportation | 3.88% | 8/15/2026 | 2000 | 1962 | 1982 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Alera Group, Inc. (b) | Financials | S+ 3.25% (7.41%) | 5/31/2032 | 7780 | 7743 | 7805 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Apollo Commercial Real Estate Finance, Inc. | Financials | 4.63% | 6/15/2029 | 3000 | 3000 | 2883 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;ARC Falcon I, Inc. (f) | Chemicals | S+ 3.50% (7.76%) | 10/2/2028 | 4974 | 4981 | 4976 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Arches Buyer, Inc. (b) | Publishing | S+ 3.25% (7.51%) | 12/6/2027 | 5930 | 5840 | 5933 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Arcline FM Holdings, LLC (f) | Industrials | S+ 3.50% (7.58%) | 6/24/2030 | 4988 | 4975 | 4984 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Artera Services, LLC (b) | Utilities | S+ 4.50% (8.50%) | 2/18/2031 | 5534 | 5503 | 4930 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ascend Learning, LLC (f) | Education | S+ 3.00% (7.16%) | 12/11/2028 | 3985 | 3975 | 3979 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ascensus Group Holdings, Inc. (b) | Business Services | S+ 3.00% (7.16%) | 8/2/2028 | 7485 | 7480 | 7473 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Athenahealth Group, Inc. (b) | Healthcare | S+ 2.75% (6.91%) | 2/15/2029 | 9950 | 9832 | 9925 | 2.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Athletico Management, LLC (f) | Healthcare | S+ 4.25% (8.56%) | 2/15/2029 | 4838 | 4825 | 3572 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Avalara, Inc. (f) | Software/Services | S+ 3.25% (7.25%) | 3/26/2032 | 5985 | 5956 | 5983 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Avaya Holdings Corp. | Technology | S+ 7.50% (11.66%) | 8/1/2028 | 2528 | 2497 | 2211 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Baldwin Insurance Group Holdings, LLC (b) | Financials | S+ 2.50% (6.64%) | 5/26/2031 | 3485 | 3478 | 3482 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Beach Acquisition Bidco, LLC (f) | Consumer | S+ 3.25% (7.31%) | 9/13/2032 | 1450 | 1446 | 1456 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Bella Holding Co., LLC (b) | Healthcare | S+ 3.00% (7.16%) | 5/10/2028 | 8047 | 8025 | 8053 | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Belron Finance 2019, LLC (b) | Transportation | S+ 2.50% (6.74%) | 10/16/2031 | 5742 | 5731 | 5767 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blackhawk Network Holdings, Inc. (b) | Consumer | S+ 4.00% (8.16%) | 3/12/2029 | 4938 | 4881 | 4952 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blackstone CQP Holdco, LP (b) | Industrials | S+ 2.00% (6.00%) | 12/31/2030 | 4928 | 4932 | 4927 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Brown Group Holding, LLC (b) | Other | S+ 2.75% (7.06%) | 7/1/2031 | 2968 | 2968 | 2973 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cablevision Lightpath, LLC | Telecom | 3.88% | 9/15/2027 | 3000 | 2932 | 2914 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Caesars Entertainment, Inc. (b) | Gaming/Lodging | S+ 2.25% (6.41%) | 2/6/2031 | 4962 | 4958 | 4946 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Camelot Return Merger Sub, Inc. | Industrials | 8.75% | 8/1/2028 | 1377 | 1228 | 1332 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;CD&R Hydra Buyer, Inc. (b) | Industrials | S+ 4.00% (8.26%) | 3/25/2031 | 6206 | 6180 | 6162 | 1.6% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cirque Du Soleil Holding USA Newco, Inc. (b) (f) | Media/Entertainment | S+ 3.75% (7.75%) | 3/8/2030 | $7358 | $7323 | $7032 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Citadel Securities, LP (b) | Financials | S+ 2.00% (6.16%) | 10/31/2031 | 4422 | 4421 | 4429 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Clarios Global, LP (b) | Transportation | S+ 2.75% (6.91%) | 1/28/2032 | 10000 | 9992 | 9997 | 2.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Clover Holding 2, LLC (b) | Software/Services | S+ 3.75% (7.94%) | 12/9/2031 | 5237 | 5190 | 5235 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;CNT Holdings I Corp. (b) (f) | Consumer | S+ 2.25% (6.56%) | 11/8/2032 | 6046 | 6048 | 6041 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Compass Power Generation, LLC (b) | Utilities | S+ 3.25% (7.57%) | 4/16/2029 | 6560 | 6480 | 6596 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Connect Finco SARL (f) | Telecom | S+ 3.50% (7.66%) | 12/11/2026 | 2175 | 2176 | 2169 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Connectwise, LLC (b) (f) | Software/Services | S+ 3.50% (7.76%) | 9/29/2028 | 12661 | 12637 | 12674 | 3.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Conservice Midco, LLC (b) | Business Services | S+ 2.75% (6.91%) | 5/13/2030 | 7432 | 7432 | 7447 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Corelogic, Inc. | Business Services | 4.50% | 5/1/2028 | 2000 | 1841 | 1938 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Corelogic, Inc. (b) | Business Services | S+ 3.50% (7.78%) | 6/2/2028 | 8905 | 8872 | 8897 | 2.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cornerstone Building Brands, Inc. (b) (f) | Industrials | S+ 5.63% (9.78%) | 8/1/2028 | 3573 | 3595 | 3424 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cotiviti, Inc. (b) | Healthcare | S+ 2.75% (7.03%) | 3/26/2032 | 4738 | 4693 | 4647 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cotiviti, Inc. (b) | Healthcare | S+ 2.75% (7.03%)  | 5/1/2031 | 9851 | 9814 | 9666 | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Crisis Prevention Institute, Inc. (b) | Education | S+ 4.00% (8.00%) | 4/9/2031 | 2316 | 2306 | 2298 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Crown Finance US, Inc. (b) | Media/Entertainment | S+ 4.50% (8.78%) | 12/2/2031 | 4963 | 4919 | 4948 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Directv Financing, LLC (b) | Media/Entertainment | S+ 5.00% (9.57%) | 8/2/2027 | 196 | 194 | 196 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Edgewater Generation, LLC (b) | Utilities | S+ 3.00% (7.16%) | 8/1/2030 | 6981 | 6923 | 6990 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;EIG Management Co., LLC (b) | Financials | S+ 5.00% (9.17%)  | 5/17/2029 | 3737 | 3678 | 3737 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Emerald Borrower, LP (b) (f) | Industrials | S+ 2.25% (6.12%) | 8/4/2031 | 2299 | 2296 | 2288 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ensemble RCM, LLC (b) (f) | Healthcare | S+ 3.00% (7.31%) | 8/1/2029 | 13345 | 13269 | 13373 | 3.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Entain, PLC (f) | Gaming/Lodging | S+ 2.25% (6.25%) | 7/30/2032 | 4800 | 4800 | 4791 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Entain, PLC (b) (f) | Gaming/Lodging | S+ 2.25% (6.37%) | 10/31/2029 | 3467 | 3463 | 3463 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Epicor Software Corp. (b) | Software/Services | S+ 2.50% (6.66%) | 5/30/2031 | 6085 | 6055 | 6090 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Examworks Bidco, Inc. (b) | Healthcare | S+ 2.75% (6.91%) | 11/1/2028 | 1092 | 1080 | 1093 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Fiesta Purchaser, Inc. (b) | Food & Beverage | S+ 2.75% (6.91%) | 2/12/2031 | 2469 | 2469 | 2462 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;FinThrive Software Intermediate Holdings, Inc. (b) | Healthcare | S+ 5.25% (9.25%) | 12/15/2028 | 2978 | 2953 | 2955 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;First Advantage Holdings, LLC (b) | Business Services | S+ 2.75% (6.91%) | 10/31/2031 | 4406 | 4388 | 4289 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;First Brands Group, LLC | Consumer | S+ 5.00% (9.57%) | 3/30/2027 | 8909 | 8573 | 3831 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness International, LLC (b) | Consumer | S+ 4.50% (8.66%) | 2/12/2029 | 9850 | 9636 | 9889 | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;FNZ Group Entities, Ltd. (b) | Financials | S+ 5.00% (9.32%) | 11/5/2031 | 4975 | 4894 | 3980 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Focus Financial Partners, LLC (f) | Financials | S+ 2.75% (6.91%) | 9/15/2031 | 6948 | 6937 | 6948 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Foley Products Co., LLC (b) | Industrials | S+ 4.75% (8.90%) | 12/29/2028 | 2205 | 2192 | 2215 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Foresight Energy Operating, LLC (b) | Energy | S+ 8.00% (12.10%) | 6/30/2027 | 650 | 637 | 650 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Foundation Building Materials, Inc. (b) | Industrials | S+ 4.00% (8.31%) | 1/29/2031 | 7760 | 7719 | 7770 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Freeport LNG Investments, LLLP (f) | Energy | S+ 3.00% (7.59%)  | 11/17/2026 | 4877 | 4862 | 4874 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Galaxy US OpCo, Inc. (b) (f) | Software/Services | S+ 5.75% (10.06%) 3.75% PIK | 7/31/2030 | 4774 | 4374 | 4324 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Geon Performance Solutions, LLC (b) | Chemicals | S+ 4.25% (8.51%) | 8/18/2028 | 4534 | 4516 | 4234 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Geosyntec Consultants, Inc. (b) | Business Services | S+ 3.00% (7.17%) | 7/31/2031 | 9204 | 9167 | 9204 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Global Medical Response, Inc. (b) | Healthcare | S+ 3.50% (7.63%) | 10/1/2032 | 9966 | 9836 | 9966 | 2.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Golden State Foods, LLC (b) | Food & Beverage | S+ 4.00% (8.00%) | 12/4/2031 | 6435 | 6393 | 6442 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gulfside Supply, Inc. (b) | Industrials | S+ 3.00% (7.00%) | 6/17/2031 | 4630 | 4630 | 4630 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Hamilton Projects Acquiror, LLC (f) | Utilities | S+ 2.50% (6.66%) | 5/30/2031 | 6669 | 6657 | 6683 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;HelpSystems Holdings, Inc. (b) | Software/Services | S+ 3.75% (8.16%) | 11/19/2026 | 7233 | 6739 | 6811 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Hudson River Trading, LLC (b) | Financials | S+ 3.00% (7.15%) | 3/18/2030 | 7737 | 7696 | 7748 | 2.0% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Hunter Douglas, Inc. (f) | Consumer | S+ 3.25% (7.25%) | 1/16/2032 | $4495 | $4482 | $4495 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Icon Parent I, Inc. (b) | Software/Services | S+ 2.75% (6.75%) | 11/13/2031 | 4988 | 4968 | 4979 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;IDERA, Inc. (f) | Technology | S+ 3.50% (7.80%) | 3/2/2028 | 4962 | 4965 | 4329 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;ION Platform Finance US, Inc. (f) | Technology | S+ 3.75% (7.69%) | 9/30/2032 | 4063 | 4022 | 4022 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Jane Street Group, LLC (b) (f) | Financials | S+ 2.00% (6.20%) | 12/15/2031 | 10105 | 10091 | 10021 | 2.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;JSG II, Inc. (f) | Industrials | S+ 4.50% (8.92%) | 6/28/2026 | 397 | 393 | 397 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Jump Financial, LLC (b) | Financials | S+ 3.50% (7.50%) | 2/26/2032 | 7250 | 7186 | 7286 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Kaman Corp. (b) | Industrials | S+ 2.50% (6.70%) | 2/26/2032 | 6214 | 6209 | 6191 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Kaman Corp. (b) (d) | Industrials | S+ 2.50% (6.83%) | 2/26/2032 | 56 | 56 | 54 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Kaseya, Inc. (b) | Software/Services | S+ 3.25% (7.41%)  | 3/22/2032 | 3781 | 3763 | 3784 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Kingpin Intermediate Holdings, LLC | Consumer | 7.25% | 10/15/2032 | 5000 | 4893 | 4750 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Kingpin Intermediate Holdings, LLC (f) | Consumer | S+ 3.25% (7.39%) | 9/22/2032 | 7500 | 7444 | 7280 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;LABL, Inc. (b) | Paper & Packaging | S+ 5.00% (9.26%)  | 10/30/2028 | 4923 | 4883 | 4025 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;LaserShip, Inc. (b) | Transportation | S+ 5.50% (9.76%) 4.00% PIK | 8/10/2029 | 3901 | 3347 | 2786 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;LifePoint Health, Inc. (b) | Healthcare | S+ 3.75% (8.07%) | 5/19/2031 | 4811 | 4727 | 4799 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Max US Bidco, Inc. (b) | Food & Beverage | S+ 5.00% (9.00%) | 10/3/2030 | 4925 | 4735 | 4796 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Merlin Buyer, Inc. (f) | Industrials | S+ 4.00% (8.00%) | 12/13/2028 | 1111 | 1108 | 1114 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Mermaid Bidco Inc (b) | Business Services | S+ 3.25% (7.57%) | 7/3/2031 | 7480 | 7463 | 7464 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;MH Sub I, LLC (b) (f) | Business Services | S+ 4.25% (8.25%) | 5/3/2028 | 7381 | 7186 | 7089 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Michael Baker International, LLC (b) | Industrials | S+ 4.00% (8.31%) | 12/1/2028 | 3218 | 3203 | 3223 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Monogram Food Solutions, LLC (f) | Food & Beverage | S+ 4.00% (8.28%) | 8/28/2028 | 2093 | 2027 | 2098 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;MPH Acquisition Holdings, LLC (b) | Healthcare | S+ 3.75% (8.06%) | 12/31/2030 | 93 | 92 | 93 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;MPH Acquisition Holdings, LLC (b) | Healthcare | S+ 4.60% (9.17%) | 12/31/2030 | 771 | 763 | 707 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nexus Buyer, LLC (b) | Financials | S+ 3.50% (7.66%) | 7/31/2031 | 4975 | 4956 | 4961 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nouryon Finance B.V. (f) | Chemicals | S+ 3.25% (7.50%) | 4/3/2028 | 2209 | 2197 | 2211 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Omnia Partners, LLC (f) | Business Services | S+ 2.50% (6.81%) | 7/25/2030 | 6167 | 6136 | 6166 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Oscar AcquisitionCo, LLC (f) | Industrials | S+ 4.25% (8.25%) | 4/30/2029 | 3417 | 3397 | 3185 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Peer Holding III B.V. (b) | Retail | S+ 2.50% (6.50%) | 7/1/2031 | 5955 | 5955 | 5956 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Peraton Corp. (b) | Business Services | S+ 3.75% (8.01%) | 2/1/2028 | 4868 | 4851 | 4097 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;PetSmart, LLC (f) | Retail | S+ 4.00% (8.14%)  | 8/18/2032 | 2455 | 2455 | 2417 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pluto Acquisition I, Inc. (b) | Healthcare | S+ 4.00% (8.24%) | 9/20/2028 | 9656 | 9656 | 7097 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;PODS, LLC (b) (f) | Paper & Packaging | S+ 3.00% (7.28%) | 3/31/2028 | 9458 | 9055 | 9248 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Power Stop, LLC (f) | Transportation | S+ 4.75% (9.16%) | 1/26/2029 | 2734 | 2717 | 2334 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;PRA Health Sciences, Inc. | Healthcare | 2.88% | 7/15/2026 | 6600 | 6485 | 6489 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pregis TopCo, LLC (b) | Paper & Packaging | S+ 4.00% (8.16%) | 2/1/2029 | 6678 | 6664 | 6720 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pretzel Parent, Inc. (b) | Media/Entertainment | S+ 4.50% (8.66%) | 10/1/2031 | 3483 | 3436 | 3474 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Proofpoint, Inc. (b) | Software/Services | S+ 3.00% (7.16%) | 8/31/2028 | 6633 | 6606 | 6650 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pug, LLC (f) | Media/Entertainment | S+ 4.75% (8.91%) | 3/15/2030 | 2873 | 2839 | 2844 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Quikrete Holdings, Inc. (f) | Industrials | S+ 2.25% (6.41%) | 4/14/2031 | 6017 | 6007 | 6014 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Quikrete Holdings, Inc. (b) | Industrials | S+ 2.25% (6.41%) | 2/10/2032 | 2537 | 2532 | 2536 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Radiology Partners, Inc. (b) | Healthcare | S+ 4.50% (8.50%) | 6/30/2032 | 11110 | 11001 | 11073 | 2.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Raven Acquisition Holdings, LLC (b) | Healthcare | S+ 3.00% (7.16%)  | 11/19/2031 | 9751 | 9693 | 9745 | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Raven Acquisition Holdings, LLC (b) (d) | Healthcare | S+ 3.00% | 11/19/2031 |  | (4) |  | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;Recess Holdings, Inc. (b) | Consumer | S+ 3.75% (8.07%) | 2/21/2030 | 7357 | 7301 | 7378 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Red Planet Borrower, LLC (b) | Media/Entertainment | S+ 4.00% (8.16%) | 9/8/2032 | 7500 | 7426 | 7288 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Renaissance Holdings Corp. (f) | Software/Services | S+ 4.00% (8.16%)  | 4/5/2030 | 4159 | 4080 | 3591 | 0.9% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Rithum Holdings, Inc. (b) | Technology | S+ 4.75% (8.75%)  | 7/21/2032 | $5000 | $4901 | $4984 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Roper Industrial Products Investment Co., LLC (f) | Industrials | S+ 2.75% (6.75%) | 11/22/2029 | 4959 | 4886 | 4963 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Russell Investments US Institutional Holdco, Inc. (b) | Financials | S+ 6.50% (10.81%) 1.50% PIK | 5/28/2027 | 5821 | 5728 | 5566 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;RXB Holdings, Inc. (b) (f) | Healthcare | S+ 4.50% (8.78%)  | 12/20/2027 | 9821 | 9819 | 9845 | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ryan Specialty Group, LLC (b) | Financials | S+ 2.00% (6.16%) | 9/15/2031 | 1987 | 1983 | 1987 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;S&S Holdings, LLC (b) | Consumer | S+ 5.00% (9.27%) | 3/13/2028 | 6685 | 6594 | 6653 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Safety Products/JHC Acquisition Corp. (f) | Industrials | S+ 4.50% (8.92%) | 6/28/2026 | 7350 | 7280 | 7341 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Saks Global Enterprises, LLC | Consumer | 11.00% | 12/15/2029 | 90 | 64 | 32 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Saks Global Enterprises, LLC | Consumer | 11.00% | 12/15/2029 | 2400 | 2411 | 1224 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sedgwick Claims Management Services, Inc. (b) | Business Services | S+ 2.50% (6.66%)  | 7/31/2031 | 7236 | 7223 | 7225 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;SGUS, LLC | Consumer | 11.00% | 12/15/2029 | 1028 | 1329 | 968 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sharp Services, LLC (f) | Healthcare | S+ 3.00% (6.99%) | 9/29/2032 | 3016 | 3001 | 3016 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Smyrna Ready Mix Concrete, LLC | Industrials | 6.00% | 11/1/2028 | 2000 | 1947 | 1999 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sonrava Health Holdings, LLC | Healthcare | S+ 6.50% (10.78%) | 5/18/2028 | 1847 | 1578 | 1828 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sonrava Health Holdings, LLC | Healthcare | S+ 6.50% (10.78%) 5.50% PIK | 8/18/2028 | 10612 | 10463 | 3184 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sotera Health Holdings, LLC (b) | Healthcare | S+ 2.50% (6.66%) | 5/30/2031 | 9428 | 9391 | 9432 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Specialty Building Products Holdings, LLC (b) | Industrials | S+ 3.75% (8.01%) | 10/16/2028 | 2939 | 2933 | 2826 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Staples, Inc. (f) | Business Services | S+ 5.75% (10.05%) | 9/4/2029 | 4961 | 4805 | 4695 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Starlight Parent, LLC (b) | Software/Services | S+ 4.00% (8.03%) | 4/16/2032 | 7500 | 7286 | 7350 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Stonepeak Nile Parent, LLC (b) | Transportation | S+ 2.75% (7.08%) | 4/9/2032 | 4375 | 4365 | 4372 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tecta America Corp. (b) | Industrials | S+ 3.00% (7.16%) | 2/18/2032 | 5483 | 5471 | 5499 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;TransDigm, Inc. (f) | Industrials | S+ 2.50% (6.50%) | 2/28/2031 | 5910 | 5899 | 5906 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Traverse Midstream Partners, LLC (b) (f) | Energy | S+ 2.50% (6.81%) | 2/16/2028 | 12849 | 12846 | 12857 | 3.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Triton Water Holdings, Inc. (b) | Food & Beverage | S+ 2.25% (6.25%) | 3/31/2028 | 8903 | 8881 | 8898 | 2.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Truck Hero, Inc. (b) (f) | Transportation | S+ 5.00% (9.28%) | 1/31/2028 | 4455 | 4383 | 4137 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Truck Hero, Inc. (b) (f) | Transportation | S+ 3.75% (8.03%) | 1/31/2028 | 8384 | 8309 | 7574 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;UKG, Inc. (b) (f) | Technology | S+ 2.50% (6.81%) | 2/10/2031 | 9662 | 9603 | 9649 | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;United Airlines, Inc. (b) | Transportation | S+ 2.00% (6.20%) | 2/24/2031 | 3720 | 3706 | 3726 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;University Support Services, LLC (b) (f) | Education | S+ 2.75% (6.91%) | 2/12/2029 | 7036 | 6975 | 6923 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;US Anesthesia Partners, Inc. (b) (f) | Healthcare | S+ 4.25% (8.50%) | 10/2/2028 | 6932 | 6683 | 6916 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Venga Finance SARL (b) | Telecom | S+ 3.75% (8.21%)  | 6/29/2029 | 3881 | 3804 | 3889 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Venture Global Calcasieu Pass, LLC | Energy | 3.88% | 11/1/2033 | 3000 | 2536 | 2700 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;VFH Parent, LLC (f) | Financials | S+ 2.50% (6.66%) | 6/23/2031 | 5000 | 5000 | 5000 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Victory Buyer, LLC (b) | Industrials | S+ 3.75% (8.03%) | 11/20/2028 | 9368 | 9119 | 9368 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Virgin Media Bristol, LLC (f) | Telecom | S+ 2.50% (6.77%) | 1/31/2028 | 2802 | 2799 | 2798 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;WaterBridge Midstream Operating, LLC (b) (f) | Energy | S+ 4.75% (9.03%) | 6/27/2029 | 12780 | 12559 | 12784 | 3.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Waterbridge NDB Operating, LLC (f) | Energy | S+ 4.00% (8.17%) | 5/10/2029 | 2084 | 2068 | 2085 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;WCG Purchaser Corp. (b) | Healthcare | S+ 3.00% (7.16%) | 2/25/2032 | 6484 | 6454 | 6427 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;WestJet Loyalty, LP (b) | Transportation | S+ 3.25% (7.25%) | 2/14/2031 | 5713 | 5667 | 5716 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;White Cap Supply Holdings, LLC (f) | Consumer | S+ 3.25% (7.42%) | 10/19/2029 | 5294 | 5270 | 5293 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Windsor Holdings III, LLC (f) | Chemicals | S+ 2.75% (6.92%) | 8/1/2030 | 3253 | 3203 | 3253 | 0.8% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;X Corp. (b) | Media/Entertainment | S+ 6.50% (10.96%) | 10/26/2029 | $9923 | $9885 | $9726 | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;X Corp. (b) (f) | Media/Entertainment | 9.50% | 10/26/2029 | 7500 | 7423 | 7518 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Zayo Group Holdings, Inc. (b) (f) | Telecom | S+ 3.50% (7.77%) | 3/11/2030 | 7464 | 6967 | 7233 | 1.9% |
| **Subtotal Senior Secured First Lien Debt** |  |  |  |  | $**863118** | $**841903** | **217.1%** |
| **Senior Secured Second Lien Debt** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;American Rock Salt Company, LLC | Chemicals | S+ 7.25% (11.71%)  | 6/11/2029 | $1943 | $1930 | $1570 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Edelman Financial Center, LLC (f) | Financials | S+ 5.25% (9.41%) | 10/6/2028 | 4750 | 4742 | 4751 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Icon Parent I, Inc. (b) | Software/Services | S+ 5.00% (9.21%) | 11/12/2032 | 5000 | 4981 | 5055 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;IDERA, Inc. (b) (e) | Technology | S+ 6.75% (11.20%) | 3/2/2029 | 1036 | 1031 | 933 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Kaseya, Inc. (b) | Software/Services | S+ 5.00% (9.16%) | 3/20/2033 | 696 | 693 | 696 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Neptune Bidco US, Inc. (f) | Publishing | S+ 9.75% (14.18%) | 10/11/2029 | 1788 | 1754 | 1711 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Peraton Corp. (b) | Business Services | S+ 7.75% (12.05%) | 2/1/2029 | 11750 | 9387 | 6947 | 1.8% |
| **Subtotal Senior Secured Second Lien Debt** |  |  |  |  | $**24518** | $**21663** | **5.5%** |
| **Subordinated Debt** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Resideo Funding, Inc. | Consumer | 4.00% | 9/1/2029 | $2000 | $1910 | $1908 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Venture Global LNG, Inc. | Energy | 9.00% | 3/30/2074 | 8000 | 7336 | 7915 | 2.0% |
| **Subtotal Subordinated Debt** |  |  |  |  | $**9246** | $**9823** | **2.5%** |
| **Collateralized Securities** |  |  |  |  |  |  |  |
| **Collateralized Securities - Debt Investments** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AIG CLO, Ltd. 21-1A F | Diversified Investment Vehicles | S+ 6.90% (11.49%) | 4/22/2034 | $1410 | $1311 | $1320 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Battalion CLO, Ltd. 21-17A F | Diversified Investment Vehicles | S+ 7.50% (12.09%) | 3/9/2034 | 1224 | 1151 | 758 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Carlyle GMS CLO, 16-3A FRR | Diversified Investment Vehicles | S+ 8.60% (13.19%) | 7/20/2034 | 2100 | 2006 | 1823 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Eaton Vance CDO, Ltd. 15-1A FR | Diversified Investment Vehicles | S+ 7.97% (12.56%) | 1/20/2030 | 2000 | 1832 | 991 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Greywolf CLO, Ltd. 20-3RA ER | Diversified Investment Vehicles | S+ 8.74% (13.33%) | 4/22/2033 | 1000 | 900 | 916 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Highbridge Loan Management, Ltd. 11A-17 E | Diversified Investment Vehicles | S+ 6.10% (10.62%) | 5/6/2030 | 3000 | 2804 | 2573 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;KKR Financial CLO, Ltd. 15 FR | Diversified Investment Vehicles | S+ 8.50% (13.09%) | 1/18/2032 | 2000 | 1919 | 1795 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;LCM, Ltd. Partnership 16A ER2 | Diversified Investment Vehicles | S+ 6.38% (10.96%) | 10/15/2031 | 2500 | 2345 | 2183 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;OCP CLO, Ltd. 14-5A DR | Diversified Investment Vehicles | S+ 5.70% (10.28%) | 4/26/2031 | 2200 | 2117 | 2124 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;OZLM, Ltd. 16-15A DR | Diversified Investment Vehicles | S+ 6.75% (11.34%) | 4/20/2033 | 2000 | 1927 | 1904 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Saranac CLO, Ltd. 20-8A E | Diversified Investment Vehicles | S+ 8.12% (12.59%) | 2/20/2033 | 1455 | 1445 | 1360 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sound Point CLO, Ltd. 17-2A E | Diversified Investment Vehicles | S+ 6.10% (10.68%) | 7/25/2030 | 2400 | 2181 | 1816 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sound Point CLO, Ltd. 18-3A D | Diversified Investment Vehicles | S+ 5.79% (10.37%) | 10/26/2031 | 1000 | 929 | 816 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Symphony CLO, Ltd. 2012-9A ER2 | Diversified Investment Vehicles | S+ 6.95% (11.53%) | 7/16/2032 | 3000 | 2830 | 2891 | 0.7% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Venture CDO, Ltd. 16-23A ER2 | Diversified Investment Vehicles | S+ 7.55% (12.14%) | 7/19/2034 | $3000 | $2929 | $2567 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Venture CLO 43, Ltd. 21-43A E | Diversified Investment Vehicles | S+ 7.15% (11.73%) | 4/15/2034 | 3000 | 2932 | 2722 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Wind River CLO, Ltd. 14-2A FR | Diversified Investment Vehicles | S+ 7.87% (12.45%) | 1/15/2031 | 3000 | 2648 | 537 | 0.1% |
| **Subtotal Collateralized Securities** |  |  |  |  | $**34206** | $**29096** | **7.6%** |
| **Equity/Other** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Avaya Holdings Corp. | Technology |  |  | 88 | $1244 | $969 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Avaya Holdings Corp. | Technology |  |  | 17 | 244 | 190 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gordian Medical, Inc. | Healthcare |  |  | 415 | 7448 | 7316 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gordian Medical, Inc. | Healthcare |  |  | 392 |  |  | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;PG&E Corp. | Utilities | 6.00% | 12/1/2027 | 230 | 10683 | 9040 | 2.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Resolute Investment Managers, Inc. | Financials |  |  | 30 | 1286 | 991 | 0.3% |
| **Subtotal Equity/Other** |  |  |  |  | $**20905** | $**18506** | **4.7%** |
| **TOTAL INVESTMENTS** |  |  |  |  | $**951993** | $**920991** | **237.4%** |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;The majority of the investments bear interest at a rate that may be determined by reference to Secured Overnight Financing Rate ("SOFR" or "S") which reset daily, monthly, quarterly, or semiannually. For each, SLF has provided the spread over the relevant reference rate and the current interest rate in effect at September 30, 2025. Certain investments are subject to reference rate floors. For fixed rate loans, a spread above a reference rate is not applicable. For floating rate securities the all-in rate is disclosed within parentheses.

(b)&nbsp;&nbsp;&nbsp;&nbsp;SLF's investment or a portion thereof is pledged as collateral under the BAML Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(c)&nbsp;&nbsp;&nbsp;&nbsp;Percentages are based on SLF members' capital as of September 30, 2025.

(d)&nbsp;&nbsp;&nbsp;&nbsp;SLF has various unfunded commitments to portfolio companies.

(e)&nbsp;&nbsp;&nbsp;&nbsp;SLF's investment or a portion thereof is held through a total return swap agreement with J.P. Morgan.

(f)&nbsp;&nbsp;&nbsp;&nbsp;SLF's investment or a portion thereof is pledged as collateral under the Wells Fargo Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

SLF had $1.2 million of unfunded commitments to portfolio companies as of September 30, 2025.

Below is a listing of SLF's individual investments as of December 31, 2024:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| **Senior Secured First Lien Debt** | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Acrisure, LLC (b) | Financials | S+ 2.75% (7.11%) | 2/16/2027 | $17217 | $17033 | $17223 | 3.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adtalem Global Education, Inc. (f) | Education | S+ 2.75% (7.11%) | 8/14/2028 | 582 | 582 | 585 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adtalem Global Education, Inc. (f) | Education | 5.50% | 3/1/2028 | 1042 | 1042 | 1020 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Air Canada | Transportation | 3.88% | 8/15/2026 | 5000 | 4782 | 4861 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Albion Financing 3 SARL (b) | Business Services | S+ 4.25% (9.10%) | 8/17/2029 | 3050 | 3050 | 3076 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Alliant Holdings Intermediate, LLC (b) | Financials | S+ 2.75% (7.11%) | 9/19/2031 | 4988 | 4976 | 4995 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Alpha Generation, LLC (b) (f) | Utilities | S+ 2.75% (7.11%) | 9/30/2031 | 5281 | 5278 | 5311 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Altice Financing, SA (f) | Telecom | 5.00% | 1/15/2028 | 2000 | 1960 | 1565 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Altice France, SA (b) (e) | Telecom | S+ 5.50% (10.16%) | 8/15/2028 | 12353 | 12334 | 9880 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Alvogen Pharma US, Inc. (b) | Healthcare | S+ 7.50% (11.96%) | 6/30/2025 | 10297 | 10279 | 9692 | 1.9% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Amentum Government Services Holdings, LLC (b) | Industrials | S+ 2.25% (6.61%) | 9/29/2031 | $8571 | $8551 | $8536 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;American Airlines Inc/AAdvantage Loyalty IP, Ltd. (b) | Transportation | S+ 4.75% (9.63%) | 4/20/2028 | 4462 | 4436 | 4575 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;American Builders & Contractors Supply Co., Inc. | Industrials | 4.00% | 1/15/2028 | 2000 | 1909 | 1909 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;AP Gaming I, LLC (f) | Gaming/Lodging | S+ 3.75% (8.11%) | 2/15/2029 | 7067 | 6988 | 7114 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Apollo Commercial Real Estate Finance, Inc. (f) | Financials | 4.63% | 6/15/2029 | 3000 | 3000 | 2599 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Arches Buyer, Inc. (b) | Publishing | S+ 3.25% (7.71%) | 12/6/2027 | 5977 | 5862 | 5829 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Arcosa, Inc. (b) | Industrials | S+ 2.25% (6.61%) | 8/15/2031 | 1300 | 1300 | 1309 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Artera Services, LLC (b) | Utilities | S+ 4.50% (8.83%) | 2/18/2031 | 5576 | 5540 | 5519 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ascensus Group Holdings, Inc. (b) | Business Services | S+ 3.00% (7.36%) | 8/2/2028 | 7545 | 7538 | 7601 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Astoria Energy, LLC (f) | Utilities | S+ 3.25% (7.61%) | 12/10/2027 | 1723 | 1723 | 1733 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Asurion, LLC (b) | Business Services | S+ 3.25% (7.72%) | 12/23/2026 | 4016 | 3986 | 4012 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Athenahealth Group, Inc. (b) | Healthcare | S+ 3.25% (7.61%) | 2/15/2029 | 12690 | 12641 | 12704 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Athletico Management, LLC (f) | Healthcare | S+ 4.25% (8.73%) | 2/15/2029 | 4875 | 4858 | 3739 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Avaya Holdings Corp. | Technology | S+ 7.50% (11.86%) | 8/1/2028 | 2546 | 2507 | 2149 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Baldwin Insurance Group Holdings, LLC (b) | Financials | S+ 3.25% (7.61%) | 5/26/2031 | 3511 | 3503 | 3526 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Bally's Corp. (b) (f) | Gaming/Lodging | S+ 3.25% (8.14%) | 10/2/2028 | 3701 | 3675 | 3492 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Bella Holding Co., LLC (b) (f) | Healthcare | S+ 3.75% (8.21%) | 5/10/2028 | 8107 | 8078 | 8149 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Belron Finance 2019, LLC (b) | Transportation | S+ 2.75% (7.27%) | 10/16/2031 | 5786 | 5771 | 5833 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Berlin Packaging, LLC (f) | Paper & Packaging | S+ 3.50% (7.83%) | 6/9/2031 | 3032 | 3026 | 3048 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blackhawk Network Holdings, Inc. (b) | Consumer | S+ 5.00% (9.36%) | 3/12/2029 | 4975 | 4887 | 5030 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blackstone CQP Holdco, LP (b) (f) | Industrials | S+ 2.00% (6.33%) | 12/31/2030 | 12355 | 12361 | 12367 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Broadstreet Partners, Inc. (f) | Financials | S+ 3.00% (7.36%) | 6/16/2031 | 1851 | 1849 | 1855 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Brown Group Holding, LLC (b) | Other | S+ 2.50% (7.09%) | 7/1/2031 | 2993 | 2993 | 2999 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cablevision Lightpath, LLC (f) | Telecom | 3.88% | 9/15/2027 | 3000 | 2908 | 2815 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Caesars Entertainment, Inc. (b) | Gaming/Lodging | S+ 2.25% (6.61%) | 2/6/2031 | 8739 | 8725 | 8742 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Calpine Construction Finance Co., LP (f) | Utilities | S+ 2.00% (6.36%) | 7/31/2030 | 2494 | 2499 | 2486 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;CCI Buyer, Inc. (b) | Telecom | S+ 4.00% (8.33%) | 12/17/2027 | 7423 | 7379 | 7420 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;CD&R Hydra Buyer, Inc. (b) | Industrials | S+ 4.00% (8.46%) | 3/25/2031 | 6253 | 6223 | 6265 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Charter Communications Operating, LLC | Cable | 2.25% | 1/15/2029 | 400 | 359 | 352 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cirque Du Soleil Holding USA Newco, Inc. (b) (f) | Media/Entertainment | S+ 3.75% (8.08%) | 3/8/2030 | 7414 | 7374 | 7284 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Citadel Securities, LP (b) | Financials | S+ 2.00% (6.33%) | 10/31/2031 | 4455 | 4452 | 4465 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Clover Holding 2, LLC (b) | Software/Services | S+ 4.00% (8.30%) | 12/9/2031 | 5250 | 5198 | 5303 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;CNT Holdings I Corp. (f) | Consumer | S+ 3.50% (8.09%) | 11/8/2027 | 3370 | 3370 | 3388 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;CommerceHub, Inc. (f) | Technology | S+ 4.00% (8.80%) | 12/29/2027 | 4948 | 4948 | 4684 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Compass Power Generation, LLC (b) | Utilities | S+ 3.75% (8.11%) | 4/16/2029 | 7246 | 7141 | 7290 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Connect Finco SARL (f) | Telecom | S+ 3.50% (7.86%) | 12/11/2026 | 2175 | 2178 | 2148 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Connectwise, LLC (b) (f) | Software/Services | S+ 3.50% (8.09%) | 9/29/2028 | 12759 | 12730 | 12826 | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Conservice Midco, LLC (b) | Business Services | S+ 3.50% (7.86%) | 5/13/2027 | 7469 | 7469 | 7516 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Corelogic, Inc. (b) | Business Services | S+ 3.50% (7.97%) | 6/2/2028 | 6965 | 6928 | 6867 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cornerstone Building Brands, Inc. (f) | Industrials | S+ 4.50% (8.90%) | 5/15/2031 | 1377 | 1370 | 1322 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cornerstone Building Brands, Inc. (b) | Industrials | S+ 5.63% (10.02%) | 8/1/2028 | 3306 | 3368 | 3239 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cotiviti, Inc. (b) | Healthcare | S+ 2.75% (7.30%) | 5/1/2031 | 9925 | 9880 | 9969 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;CPV Shore Holdings, LLC (b) | Utilities | S+ 3.75% (8.53%) | 12/29/2025 | 2000 | 1988 | 1978 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Crisis Prevention Institute, Inc. (b) | Education | S+ 4.00% (8.43%) | 4/9/2031 | 2333 | 2322 | 2336 | 0.5% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Crown Finance US, Inc. (b) | Media/Entertainment | S+ 5.25% (9.80%) | 12/2/2031 | $5000 | $4950 | $4994 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Directv Financing, LLC (b) | Media/Entertainment | S+ 5.00% (9.85%) | 8/2/2027 | 1793 | 1780 | 1796 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Division Holding Corp. (b) | Business Services | S+ 4.75% (9.22%) | 5/26/2028 | 7892 | 7892 | 7892 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Edgewater Generation, LLC (b) | Utilities | S+ 4.25% (8.61%) | 8/1/2030 | 7308 | 7237 | 7403 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;EIG Management Co., LLC (b) | Financials | S+ 5.00% (9.36%) | 5/17/2029 | 4127 | 4052 | 4127 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Electron Bidco, Inc. (b) | Healthcare | S+ 2.75% (7.11%) | 11/1/2028 | 2500 | 2500 | 2507 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Emerald Borrower, LP (b) (f) | Industrials | S+ 2.50% (6.83%) | 8/4/2031 | 5317 | 5308 | 5332 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ensemble RCM, LLC (b) | Healthcare | S+ 3.00% (7.59%) | 8/1/2029 | 9269 | 9201 | 9328 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Entain, PLC (b) (f) | Gaming/Lodging | S+ 2.75% (7.08%) | 10/31/2029 | 3485 | 3478 | 3492 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Epicor Software Corp. (b) (f) | Software/Services | S+ 2.75% (7.11%) | 5/30/2031 | 4008 | 4001 | 4033 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Fiesta Purchaser, Inc. (b) | Food & Beverage | S+ 3.25% (7.61%) | 2/12/2031 | 2488 | 2487 | 2487 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;FinThrive Software Intermediate Holdings, Inc. (b) | Healthcare | S+ 4.00% (8.30%) | 12/15/2028 | 2000 | 1920 | 1975 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;FinThrive Software Intermediate Holdings, Inc. (b) | Healthcare | S+ 5.25% (9.63%) | 12/18/2028 | 3000 | 2970 | 2960 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;First Advantage Holdings, LLC (b) | Business Services | S+ 3.25% (7.61%) | 10/31/2031 | 4500 | 4477 | 4544 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;First Brands Group, LLC (b) (f) | Consumer | S+ 5.00% (9.85%) | 3/30/2027 | 5940 | 5891 | 5563 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness International, LLC (b) | Consumer | S+ 5.25% (9.71%) | 2/12/2029 | 9925 | 9669 | 9975 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;FNZ Group Entities, Ltd. (b) | Financials | S+ 5.00% (9.55%) | 11/5/2031 | 5000 | 4913 | 4869 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Focus Financial Partners, LLC (d) (f) | Financials | S+ 3.25% | 9/11/2031 |  |  | 7 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Focus Financial Partners, LLC (f) | Financials | S+ 3.25% (7.61%) | 9/11/2031 | 8127 | 8107 | 8195 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Foley Products Co., LLC (b) | Industrials | S+ 4.75% (9.23%) | 12/29/2028 | 2385 | 2369 | 2407 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Foresight Energy Operating, LLC (b) | Energy | S+ 8.00% (12.43%) | 6/30/2027 | 656 | 639 | 656 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Foundation Building Materials, Inc. (b) | Industrials | S+ 4.00% (8.59%) | 1/29/2031 | 12319 | 12232 | 12108 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Freeport LNG Investments, LLLP (b) | Energy | S+ 3.00% (7.88%) | 11/17/2026 | 5838 | 5806 | 5826 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Galaxy US OpCo, Inc. (b) (f) | Software/Services | S+ 4.75% (9.34%) | 4/30/2029 | 7740 | 7043 | 6850 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Genesys Cloud Services Holdings I, LLC (b) | Software/Services | S+ 3.00% (7.36%) | 12/1/2027 | 4791 | 4735 | 4827 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Geon Performance Solutions, LLC (b) | Chemicals | S+ 4.25% (8.84%) | 8/18/2028 | 4566 | 4544 | 4568 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Geosyntec Consultants, Inc. (b) | Business Services | S+ 3.75% (8.11%) | 7/31/2031 | 9250 | 9205 | 9308 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;GFL Environmental, Inc. | Business Services | 3.50% | 9/1/2028 | 2000 | 1896 | 1883 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;GIP Pilot Acquisition Partners, LP (b) | Energy | S+ 2.50% (7.09%) | 10/4/2030 | 1242 | 1237 | 1248 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Global Medical Response, Inc. (b) | Healthcare | S+ 6.25% (10.61%) 0.75% PIK | 10/31/2028 | 9970 | 9817 | 9989 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Golden State Foods, LLC (b) | Food & Beverage | S+ 4.25% (8.58%) | 10/7/2031 | 6500 | 6451 | 6551 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Green Energy Partners/Stonewall, LLC | Utilities | S+ 6.00% (10.59%) | 11/12/2026 | 7424 | 7108 | 7451 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gulfside Supply, Inc. (b) | Industrials | S+ 3.00% (7.33%) | 6/17/2031 | 4728 | 4728 | 4744 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;GVC Holdings Gibraltar, Ltd. (f) | Gaming/Lodging | S+ 2.50% (6.93%) | 3/29/2027 | 4825 | 4825 | 4836 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Hamilton Projects Acquiror, LLC (f) | Utilities | S+ 3.75% (8.11%) | 5/30/2031 | 6990 | 6974 | 7030 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;HelpSystems Holdings, Inc. (b) | Software/Services | S+ 4.00% (8.69%) | 11/19/2026 | 7291 | 6501 | 6404 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Hudson River Trading, LLC (b) | Financials | S+ 3.00% (7.48%) | 3/18/2030 | 5283 | 5243 | 5296 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Hunter Douglas, Inc. (b) (f) | Consumer | S+ 3.50% (8.02%) | 2/25/2029 | 4969 | 4953 | 4957 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Icon Parent, Inc. (b) | Software/Services | S+ 3.00% (7.52%) | 11/13/2031 | 5000 | 4975 | 5014 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;ICP Industrial, Inc. (f) | Chemicals | S+ 3.75% (8.34%) | 12/29/2027 | 5012 | 5007 | 4471 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;IDERA, Inc. (f) | Technology | S+ 3.50% (8.07%) | 3/2/2028 | 6790 | 6793 | 6656 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;IXS Holdings, Inc. (b) (f) | Transportation | S+ 4.25% (8.68%) | 3/5/2027 | 7447 | 7233 | 7166 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Jack Ohio Finance, LLC (f) | Gaming/Lodging | S+ 4.75% (9.22%) | 10/4/2028 | 3874 | 3863 | 3881 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Jane Street Group, LLC (f) | Financials | 4.50% | 11/15/2029 | 7000 | 6703 | 6544 | 1.3% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Jane Street Group, LLC (b) | Financials | S+ 2.00% (6.40%) | 12/15/2031 | $6164 | $6149 | $6137 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Jazz Securities, DAC | Healthcare | 4.38% | 1/15/2029 | 1000 | 937 | 943 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Johnstone Supply, LLC (f) | Industrials | S+ 2.50% (6.88%) | 6/9/2031 | 981 | 979 | 984 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Jump Financial, LLC (b) | Financials | S+ 4.50% (9.09%) | 8/7/2028 | 7269 | 7193 | 7232 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Kuehg Corp. (f) | Education | S+ 3.25% (7.84%) | 6/12/2030 | 3094 | 2981 | 3122 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;LABL, Inc. (b) | Paper & Packaging | S+ 5.00% (9.46%) | 10/30/2028 | 4962 | 4912 | 4787 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Lakeshore Learning Materials, LLC (f) | Retail | S+ 3.50% (7.97%) | 9/29/2028 | 4949 | 4949 | 4862 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;LaserShip, Inc. (b) | Transportation | S+ 4.50% (9.28%) | 8/10/2029 | 3775 | 3135 | 2850 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;LBM Acquisition, LLC (b) (f) | Industrials | S+ 3.75% (8.21%) | 12/17/2027 | 4974 | 4965 | 4982 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;LifePoint Health, Inc. (f) | Healthcare | 4.38% | 2/15/2027 | 4000 | 3934 | 3830 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;LifePoint Health, Inc. (b) | Healthcare | S+ 3.75% (8.41%) | 5/19/2031 | 4848 | 4753 | 4861 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Lightning Power, LLC (b) | Utilities | S+ 3.25% (7.58%)  | 8/18/2031 | 4489 | 4445 | 4534 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Lightstone Holdco, LLC (b) (f) | Utilities | S+ 5.75% (10.34%) | 1/29/2027 | 15866 | 15019 | 16025 | 3.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Lightstone Holdco, LLC (b) (f) | Utilities | S+ 5.75% (10.34%) | 1/29/2027 | 897 | 850 | 906 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Liquid Tech Solutions Holdings, LLC (b) (f) | Industrials | S+ 4.75% (9.44%) | 3/20/2028 | 9933 | 9906 | 9933 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Luxembourg Investment Co., 428 SARL | Chemicals | S+ 7.00% (11.74%) | 1/3/2029 | 3686 | 3660 | 51 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Madison IAQ, LLC (f) | Industrials | 4.13% | 6/30/2028 | 2000 | 1990 | 1893 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Magnite, Inc. (b) | Technology | S+ 3.75% (8.11%) | 2/6/2031 | 4975 | 4930 | 5031 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Max US Bidco, Inc. (b) | Food & Beverage | S+ 5.00% (9.36%) | 10/3/2030 | 4963 | 4748 | 4822 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Medline Borrower, LP (f) | Healthcare | S+ 2.25% (6.61%) | 10/23/2028 | 3990 | 3990 | 4001 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;MH Sub I, LLC (b) (f) | Business Services | S+ 4.25% (8.82%) | 5/3/2028 | 4432 | 4358 | 4432 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Michael Baker International, LLC (b) | Industrials | S+ 4.75% (9.11%) | 12/1/2028 | 3243 | 3223 | 3253 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;MPH Acquisition Holdings, LLC (b) | Healthcare | S+ 4.25% (9.03%) | 9/1/2028 | 868 | 858 | 735 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;MYOB US Borrower, LLC (f) | Business Services | S+ 4.00% (8.36%) | 5/6/2026 | 5299 | 5295 | 5201 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;National Mentor Holdings, Inc. (f) | Healthcare | S+ 3.75% (8.18%) | 3/2/2028 | 94 | 93 | 93 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;National Mentor Holdings, Inc. (b) (f) | Healthcare | S+ 3.75% (8.21%) | 3/2/2028 | 2373 | 2366 | 2349 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nexus Buyer, LLC (b) | Financials | S+ 4.00% (8.36%) | 7/31/2031 | 7156 | 7121 | 7173 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nouryon Finance B.V. (f) | Chemicals | S+ 3.25% (7.66%) | 4/3/2028 | 2247 | 2231 | 2261 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Omnia Partners, LLC (f) | Business Services | S+ 2.75% (7.37%) | 7/25/2030 | 6214 | 6177 | 6240 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;OneDigital Borrower, LLC (f) | Financials | S+ 3.25% (7.61%) | 7/2/2031 | 6841 | 6808 | 6849 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Osaic Holdings, Inc. (f) | Financials | S+ 3.50% (7.86%) | 8/17/2028 | 5491 | 5448 | 5506 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Oscar AcquisitionCo, LLC (f) | Industrials | S+ 4.25% (8.50%) | 4/30/2029 | 4943 | 4895 | 4884 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Peer Holding III B.V. (b) | Retail | S+ 3.00% (7.33%) | 7/1/2031 | 6000 | 6000 | 6024 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Peraton Corp. (b) | Industrials | S+ 3.75% (8.21%) | 2/1/2028 | 4907 | 4884 | 4557 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;PetSmart, LLC (f) | Retail | S+ 3.75% (8.21%) | 2/11/2028 | 2474 | 2473 | 2462 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pluto Acquisition I, Inc. (b) | Healthcare | S+ 4.00% (8.52%) | 9/20/2028 | 9730 | 9730 | 8838 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;PODS, LLC (b) (f) | Paper & Packaging | S+ 3.00% (7.85%) | 3/31/2028 | 7442 | 7126 | 6944 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Power Stop, LLC (f) | Transportation | S+ 4.75% (9.36%) | 1/26/2029 | 3149 | 3125 | 2986 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;PRA Health Sciences, Inc. | Healthcare | 2.88% | 7/15/2026 | 8600 | 8281 | 8284 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pregis TopCo, LLC (b) | Paper & Packaging | S+ 4.00% (8.36%) | 7/31/2026 | 6729 | 6707 | 6763 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pretzel Parent, Inc. (b) | Media/Entertainment | S+ 4.50% (8.86%) | 10/1/2031 | 3500 | 3449 | 3522 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Proofpoint, Inc. (b) | Software/Services | S+ 3.00% (7.36%) | 8/31/2028 | 6309 | 6272 | 6335 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pug, LLC (f) | Media/Entertainment | S+ 4.75% (9.11%) | 3/15/2030 | 4764 | 4700 | 4766 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Quikrete Holdings, Inc. (f) | Industrials | S+ 2.25% (6.61%) | 3/19/2029 | 1734 | 1734 | 1732 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Quikrete Holdings, Inc. (f) | Industrials | S+ 2.50% (6.86%) | 4/14/2031 | 6063 | 6048 | 6056 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Radar Bidco SARL (b) | Transportation | S+ 3.75% (8.34%) | 4/4/2031 | 1407 | 1400 | 1422 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Radiology Partners, Inc. (b) (f) | Healthcare | S+ 5.00% (9.78%) 1.50% PIK | 1/31/2029 | 10493 | 9984 | 10345 | 2.0% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Raven Acquisition Holdings, LLC (b) (d) | Healthcare | S+ 3.25% | 11/19/2031 | $— | $(3) | $1 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Raven Acquisition Holdings, LLC (b) | Healthcare | S+ 3.25% (7.61%) | 11/19/2031 | 7933 | 7894 | 7946 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Recess Holdings, Inc. (b) | Consumer | S+ 4.50% (9.09%) | 2/20/2030 | 12412 | 12281 | 12517 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Renaissance Holdings Corp. (f) | Software/Services | S+ 4.00% (8.36%) | 4/5/2030 | 1975 | 1974 | 1969 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Resolute Investment Managers, Inc. | Financials | S+ 6.50% (11.09%) | 4/30/2027 | 2433 | 2433 | 2433 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Revere Power, LLC (b) | Utilities | S+ 4.25% (8.73%) | 3/30/2026 | 8683 | 8209 | 8564 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Revere Power, LLC (b) | Utilities | S+ 4.25% (8.73%) | 3/30/2026 | 766 | 725 | 756 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Roper Industrial Products Investment Co., LLC (f) | Industrials | S+ 2.75% (7.08%) | 11/22/2029 | 7496 | 7340 | 7509 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Russell Investments US Institutional Holdco, Inc. (b) | Financials | S+ 6.50% (11.09%) 1.50% PIK | 5/28/2027 | 5828 | 5692 | 5544 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;RXB Holdings, Inc. (b) (f) | Healthcare | S+ 4.50% (8.97%) | 12/20/2027 | 9898 | 9896 | 9823 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ryan Specialty Group, LLC (b) | Financials | S+ 2.25% (6.61%) | 9/15/2031 | 2002 | 1997 | 2007 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;S&S Holdings, LLC (f) | Consumer | S+ 5.00% (9.46%) | 3/13/2028 | 6738 | 6621 | 6717 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Safety Products/JHC Acquisition Corp. (b) | Industrials | S+ 4.50% (8.96%) | 6/28/2026 | 399 | 390 | 399 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Safety Products/JHC Acquisition Corp. (b) (f) | Industrials | S+ 4.50% (8.96%) | 6/28/2026 | 7389 | 7255 | 7389 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Saks Global Enterprises, LLC | Consumer | 11.00% | 12/15/2029 | 3000 | 3000 | 2885 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sedgwick Claims Management Services, Inc. (b) | Business Services | S+ 3.00% (7.59%) | 7/31/2031 | 7291 | 7273 | 7327 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sierra Enterprises, LLC (b) | Food & Beverage | S+ 6.75% (11.34%) 4.25% PIK | 5/10/2027 | 5175 | 5113 | 5097 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;SK Neptune Husky Finance SARL | Chemicals | S+ 10.00% (15.59%) 2.00% PIK | 4/30/2024 | 650 | 645 | 650 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sonrava Health Holdings, LLC | Healthcare | S+ 6.50% (11.50%) | 5/18/2028 | 1856 | 1612 | 1837 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sonrava Health Holdings, LLC (f) | Healthcare | S+ 6.50% (11.50%) 5.50% PIK | 8/18/2028 | 10180 | 10178 | 6108 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sotera Health Holdings, LLC (f) | Healthcare | S+ 3.25% (7.84%) | 5/30/2031 | 9975 | 9928 | 9981 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Specialty Building Products Holdings, LLC (b) | Industrials | S+ 3.75% (8.21%) | 10/16/2028 | 4962 | 4948 | 4932 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Staples, Inc. (f) | Business Services | S+ 5.75% (10.18%) | 9/4/2029 | 7345 | 7077 | 7007 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Team Health Holdings, Inc. (f) | Healthcare | S+ 5.25% (9.84%) | 3/2/2027 | 2745 | 2676 | 2649 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tecta America Corp. (f) | Industrials | S+ 4.00% (8.47%) | 4/10/2028 | 8772 | 8760 | 8803 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;TransDigm, Inc. (f) | Industrials | S+ 2.50% (6.83%) | 2/28/2031 | 5955 | 5942 | 5963 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Traverse Midstream Partners, LLC (b) | Energy | S+ 3.00% (7.59%) | 2/16/2028 | 12849 | 12841 | 12898 | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Triton Water Holdings, Inc. (f) | Food & Beverage | S+ 3.25% (7.84%) | 3/31/2028 | 7238 | 7227 | 7286 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Triton Water Holdings, Inc. (b) | Food & Beverage | S+ 4.00% (8.33%) | 3/31/2028 | 1733 | 1712 | 1746 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Truck Hero, Inc. (f) | Transportation | S+ 5.00% (9.47%) | 1/31/2028 | 1489 | 1460 | 1492 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Truck Hero, Inc. (b) (f) | Transportation | S+ 3.50% (7.97%) | 1/31/2028 | 8450 | 8353 | 8180 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;UKG, Inc. (b) (f) | Technology | S+ 3.00% (7.62%) | 2/10/2031 | 9711 | 9642 | 9772 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;United Airlines, Inc. | Transportation | 4.38% | 4/15/2026 | 2000 | 1958 | 1966 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;United Airlines, Inc. (b) | Transportation | S+ 2.00% (6.64%) | 2/24/2031 | 3748 | 3732 | 3755 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;University Support Services, LLC (f) | Education | S+ 2.75% (7.11%) | 2/12/2029 | 7266 | 7252 | 7294 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;US Anesthesia Partners, Inc. (b) (f) | Healthcare | S+ 4.25% (8.92%) | 10/2/2028 | 6986 | 6682 | 6942 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Venga Finance SARL (b) | Telecom | S+ 4.25% (9.03%) | 6/28/2029 | 3910 | 3820 | 3925 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Victory Buyer, LLC (b) | Industrials | S+ 3.75% (8.22%) | 11/20/2028 | 9444 | 9143 | 9253 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Virgin Media Bristol, LLC (f) | Telecom | S+ 3.18% (7.72%) | 3/31/2031 | 2500 | 2498 | 2472 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;VS Buyer, LLC (b) | Software/Services | S+ 2.75% (7.12%) | 4/14/2031 | 1067 | 1065 | 1074 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;WaterBridge Midstream Operating, LLC (b) | Energy | S+ 4.75% (9.08%) | 6/21/2029 | 9975 | 9885 | 9921 | 1.9% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Waterbridge NDB Operating, LLC (f) | Energy | S+ 4.00% (8.52%) | 5/10/2029 | $2963 | $2935 | $2990 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Watlow Electric Manufacturing, Co. (b) | Industrials | S+ 3.50% (8.09%) | 3/2/2028 | 4601 | 4590 | 4646 | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Waystar Technologies, Inc. (b) | Healthcare | S+ 2.25% (6.60%) | 10/22/2029 | 1322 | 1321 | 1326 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;WCG Purchaser Corp. (f) | Healthcare | S+ 3.50% (7.86%) | 1/8/2027 | 4923 | 4891 | 4938 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;WEC US Holdings, Ltd. (b) | Utilities | S+ 2.25% (6.80%) | 1/27/2031 | 5506 | 5481 | 5505 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;WestJet Loyalty, LP (b) | Transportation | S+ 3.25% (7.58%) | 2/14/2031 | 5757 | 5703 | 5774 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;White Cap Supply Holdings, LLC (f) | Consumer | S+ 3.25% (7.61%) | 10/19/2029 | 6838 | 6806 | 6843 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Windsor Holdings III, LLC (f) | Chemicals | S+ 3.50% (7.86%) | 8/1/2030 | 3277 | 3221 | 3312 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Zayo Group Holdings, Inc. (f) | Telecom | S+ 4.25% (8.61%) | 3/9/2027 | 1583 | 1492 | 1483 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Zayo Group Holdings, Inc. (b) (f) | Telecom | S+ 3.00% (7.47%) | 3/9/2027 | 8409 | 7524 | 7859 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Zelis Cost Management Buyer, Inc. (f) | Healthcare | S+ 2.75% (7.11%) | 9/28/2029 | 1866 | 1858 | 1867 | 0.4% |
| **Subtotal Senior Secured First Lien Debt** |  |  |  |  | $**1016979** | $**1007810** | **201.3%** |
| **Senior Secured Second Lien Debt** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;American Rock Salt Company, LLC | Chemicals | S+ 7.25% (12.03%) | 6/11/2029 | $1943 | $1928 | $1749 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Edelman Financial Center, LLC (f) | Financials | S+ 5.25% (9.61%) | 10/6/2028 | 4750 | 4739 | 4783 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Icon Parent, Inc. (b) | Software/Services | S+ 5.00% (9.52%) | 11/12/2032 | 5000 | 4977 | 5069 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;IDERA, Inc. (b) (e) | Technology | S+ 6.75% (11.47%) | 3/2/2029 | 1036 | 1029 | 997 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Neptune Bidco US, Inc. (f) | Publishing | S+ 9.75% (14.51%) | 10/11/2029 | 2000 | 1957 | 1888 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Peraton Corp. (b) | Industrials | S+ 7.75% (12.36%) | 2/1/2029 | 5000 | 4038 | 4030 | 0.8% |
| **Subtotal Senior Secured Second Lien Debt** |  |  |  |  | $**18668** | $**18516** | **3.7%** |
| **Collateralized Securities** |  |  |  |  |  |  |  |
| **Collateralized Securities - Debt Investments** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AIG CLO, Ltd. 21-1A F | Diversified Investment Vehicles | S+ 6.90% (11.79%) | 4/22/2034 | $1410 | $1304 | $1287 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Battalion CLO, Ltd. 21-17A F | Diversified Investment Vehicles | S+ 7.50% (12.38%) | 3/9/2034 | 1224 | 1147 | 1023 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Carlyle GMS CLO, 16-3A FRR | Diversified Investment Vehicles | S+ 8.60% (13.48%) | 7/20/2034 | 2100 | 2001 | 1823 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Covenant Credit Partners CLO, Ltd. 17 1A E | Diversified Investment Vehicles | S+ 6.45% (11.37%) | 10/15/2029 | 2500 | 2346 | 2445 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Eaton Vance CDO, Ltd. 15-1A FR | Diversified Investment Vehicles | S+ 7.97% (12.85%) | 1/20/2030 | 2000 | 1809 | 1495 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Elevation CLO, Ltd. 13-1A D2 | Diversified Investment Vehicles | S+ 11.35% (16.14%) | 8/15/2032 | 2000 | 1969 | 1668 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Fortress Credit BSL, Ltd. 22-1A E | Diversified Investment Vehicles | S+ 8.15% (12.78%) | 10/23/2034 | 1000 | 982 | 993 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Greywolf CLO, Ltd. 20-3RA ER | Diversified Investment Vehicles | S+ 8.74% (13.63%) | 4/22/2033 | 1000 | 893 | 898 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Hayfin Kingsland XI, Ltd. 19-2A ER | Diversified Investment Vehicles | S+ 7.72% (12.60%) | 10/20/2034 | 2500 | 2437 | 2474 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Highbridge Loan Management, Ltd. 11A-17 E | Diversified Investment Vehicles | S+ 6.10% (10.89%) | 5/6/2030 | 3000 | 2777 | 2513 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Jamestown CLO, Ltd. 22-18A E | Diversified Investment Vehicles | S+ 7.87% (12.50%) | 7/25/2035 | 3000 | 2756 | 2975 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;KKR Financial CLO, Ltd. 15 FR | Diversified Investment Vehicles | S+ 8.50% (13.39%) | 1/18/2032 | 2000 | 1914 | 1768 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;LCM, Ltd. Partnership 16A ER2 | Diversified Investment Vehicles | S+ 6.38% (11.30%) | 10/15/2031 | 2500 | 2330 | 2275 | 0.5% |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Portfolio Company** | **Industry** | **Investment Coupon Rate (a)** | **Maturity** | **Principal/Number of Shares** | **Amortized Cost** | **Fair Value** | **% of Members' Capital (c)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Medalist Partners Corporate Finance CLO, Ltd. 21-1A D | Diversified Investment Vehicles | S+ 7.48% (12.36%) | 10/20/2034 | $3000 | $2874 | $2964 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Northwoods Capital, Ltd. 17-15A ER | Diversified Investment Vehicles | S+ 7.64% (12.26%) | 6/20/2034 | 3000 | 2933 | 2959 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;OCP CLO, Ltd. 14-5A DR | Diversified Investment Vehicles | S+ 5.70% (10.58%) | 4/26/2031 | 2200 | 2108 | 2085 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;OZLM, Ltd. 16-15A DR | Diversified Investment Vehicles | S+ 6.75% (11.63%) | 4/20/2033 | 2000 | 1921 | 1875 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Palmer Square CLO, Ltd. 21-4A F | Diversified Investment Vehicles | S+ 7.66% (12.58%) | 10/15/2034 | 1500 | 1437 | 1383 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Saranac CLO, Ltd. 20-8A E | Diversified Investment Vehicles | S+ 8.12% (12.90%) | 2/20/2033 | 1455 | 1443 | 1412 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sculptor CLO, Ltd. 27A E | Diversified Investment Vehicles | S+ 7.05% (11.93%) | 7/20/2034 | 1500 | 1464 | 1469 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sound Point CLO, Ltd. 17-1A E | Diversified Investment Vehicles | S+ 5.96% (10.85%) | 1/23/2029 | 4000 | 3736 | 3920 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sound Point CLO, Ltd. 17-2A E | Diversified Investment Vehicles | S+ 6.10% (10.99%) | 7/25/2030 | 2400 | 2155 | 1942 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sound Point CLO, Ltd. 18-3A D | Diversified Investment Vehicles | S+ 5.79% (10.67%) | 10/26/2031 | 1000 | 922 | 787 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Symphony CLO, Ltd. 2012-9A ER2 | Diversified Investment Vehicles | S+ 6.95% (11.86%) | 7/16/2032 | 3000 | 2816 | 2881 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Trimaran CAVU 2021-2A, Ltd. 21-2A E | Diversified Investment Vehicles | S+ 7.20% (12.09%) | 10/25/2034 | 3000 | 2951 | 2931 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Trysail CLO, Ltd. 21-1A E | Diversified Investment Vehicles | S+ 7.38% (12.26%) | 7/20/2032 | 1500 | 1456 | 1491 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Venture CDO, Ltd. 16-23A ER2 | Diversified Investment Vehicles | S+ 7.55% (12.43%) | 7/19/2034 | 3000 | 2925 | 2806 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Venture CLO 43, Ltd. 21-43A E | Diversified Investment Vehicles | S+ 7.15% (12.07%) | 4/15/2034 | 3000 | 2927 | 2807 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Wind River CLO, Ltd. 14-2A FR | Diversified Investment Vehicles | S+ 7.87% (12.79%) | 1/15/2031 | 3000 | 2612 | 855 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Zais CLO 13, Ltd. 19-13A D1 | Diversified Investment Vehicles | S+ 4.52% (9.44%) | 7/15/2032 | 3000 | 2784 | 2915 | 0.6% |
| **Subtotal Collateralized Securities** |  |  |  |  | $**64129** | $**61119** | **12.3%** |
| **Equity/Other** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Avaya Holdings Corp. | Technology |  |  | 88 | $1244 | $528 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Avaya Holdings Corp. | Technology |  |  | 17 | 244 | 104 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gordian Medical, Inc. | Healthcare |  |  | 405 | 7361 | 7146 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gordian Medical, Inc. | Healthcare |  |  | 392 |  |  | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;PG&E Corp. | Utilities | 6.00% | 12/1/2027 | 139 | 7081 | 6946 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Resolute Investment Managers, Inc. | Financials |  |  | 30 | 1286 | 991 | 0.2% |
| **Subtotal Equity/Other** |  |  |  |  | $**17216** | $**15715** | **3.1%** |
| **TOTAL INVESTMENTS** |  |  |  |  | $**1116992** | $**1103160** | **220.4%** |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;The majority of the investments bear interest at a rate that may be determined by reference to Secured Overnight Financing Rate ("SOFR" or "S") which reset daily, monthly, quarterly, or semiannually. For each, SLF has provided the spread over the relevant reference rate and the current interest rate in effect at December 31, 2024. Certain investments are subject to reference rate floors. For fixed rate loans, a spread above a reference rate is not applicable. For floating rate securities the all-in rate is disclosed within parentheses.

(b)&nbsp;&nbsp;&nbsp;&nbsp;SLF's investment or a portion thereof is pledged as collateral under the BAML Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(c)&nbsp;&nbsp;&nbsp;&nbsp;Percentages are based on SLF members' capital as of December 31, 2024.

(d)&nbsp;&nbsp;&nbsp;&nbsp;SLF has various unfunded commitments to portfolio companies.

(e)&nbsp;&nbsp;&nbsp;&nbsp;SLF's investment or a portion thereof is held through a total return swap agreement with J.P. Morgan.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

(f)&nbsp;&nbsp;&nbsp;&nbsp;SLF's investment or a portion thereof is pledged as collateral under the CIBC Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

SLF had $1.4 million of unfunded commitments to portfolio companies as of December 31, 2024.

Below is certain summarized financial information for SLF as of September 30, 2025 and December 31, 2024 and for the three and nine months ended September 30, 2025 and September 30, 2024:

---

| | | |
|:---|:---|:---|
| **Selected Statements of Assets and Liabilities Information** | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| Investments, at fair value (amortized cost of $951,993 and $1,116,992, respectively)  | $920991 | $1103160 |
| Cash and other assets | 28495 | 48176 |
| &nbsp;&nbsp;Total assets | $949486 | $1151336 |
| **LIABILITIES** |  |  |
| Revolving credit facilities (net of deferred financing costs of $1,425 and $1,469, respectively) | $519575 | $588531 |
| Secured borrowings | 633 | 4599 |
| Other liabilities | 41269 | 57568 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | $561477 | $650698 |
| **MEMBERS' CAPITAL** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total members' capital | $388009 | $500638 |
| Total liabilities and members' capital | $949486 | $1151336 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Selected Statements of Operations Information** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Investment income:** |  |  |  |  |
| &nbsp;&nbsp;Total investment income | $19848 | $26304 | $63432 | $77193 |
| **Operating expenses:** |  |  |  |  |
| Interest and credit facility financing expenses | 8677 | 10715 | 26724 | 31919 |
| Other expenses | 634 | 617 | 1848 | 1836 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 9311 | 11332 | 28572 | 33755 |
| **Net investment income** | 10537 | 14971 | 34860 | 43438 |
| **Realized and unrealized gain (loss) on investments and extinguishment of debt:** |  |  |  |  |
| Net realized and unrealized gain (loss) on investments and extinguishment of debt | (7209) | (2178) | (20220) | (1521) |
| Net increase (decrease) in members' capital resulting from operations | $3328 | $12794 | $14640 | $41917 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

***Unconsolidated Significant Subsidiaries***

In accordance with Rules 3-09 and 4-08(g) of Regulation S-X ("Rule 3-09" and "Rule 4-08(g)," respectively), the Company must determine which of its unconsolidated controlled affiliated investments are considered significant subsidiaries, if any. The Company had certain unconsolidated controlled affiliated investments for the nine months ended September 30, 2025 that met at least one of the significance considerations under Regulation S-X. Accordingly, the summarized financial information for FBLC Senior Loan Fund, LLC is provided above in Note 3. Included below is the summarized financial information for Post Road Equipment Financing, LLC.

---

| | | |
|:---|:---|:---|
| **Selected Balance Sheet Information** | **As of September 30,** | **As of December 31,** |
|  | **2025** | **2024** |
| Total Assets | $1175121 | $1197913 |
| Total Liabilities | 998449 | 1034298 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Selected Income Statement Information** | **For the Three Months Ended September 30,** | **For the Three Months Ended September 30,** | **For the Nine Months Ended September 30,** | **For the Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenues | $39563 | $34544 | $108898 | $97199 |
| Net income (loss) | 8877 | (2743) | 12445 | 7883 |

---

**Note 4 - Related Party Transactions**

*Investment Advisory Agreement*

On October 2, 2023, the Board of Directors approved an amendment and restatement (the "Amended and Restated Investment Advisory Agreement") of the Investment Advisory Agreement, dated September 23, 2020, by and between the Company and the Adviser. The Amended and Restated Investment Advisory Agreement went into effect on January 24, 2024 when the Mergers closed.

Pursuant to the Amended and Restated Investment Advisory Agreement, the Company pays the Adviser a fee for investment advisory and management services consisting of two components - a base management fee (the "Management Fee") and an incentive fee, which consists of two components (together, the "Incentive Fee").

Each of the Amended and Restated Investment Advisory Agreement and the Investment Advisory Agreement are discussed further below.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

*Management Fee*

The Management Fee is payable quarterly in arrears and is calculated based on the average value of the Company's gross assets at the end of the two most recently completed calendar quarters, where gross assets includes the total assets of the Company, including any borrowings for investment purposes.

Effective upon the closing of the Mergers on January 24, 2024, the Management Fee payable under the Amended and Restated Investment Advisory Agreement, is calculated at an annual rate of 1.50% of our average gross assets, provided, that the Management Fee will be calculated at an annual rate of 1.00% of our average gross assets purchased with borrowed funds above 1.0x debt-to-equity (equivalent to $1.0 of debt outstanding for each $1.0 of equity). The Management Fees payable under the Amended and Restated Investment Advisory Agreement are calculated in the same manner as the post-liquidity event calculation under the Investment Advisory Agreement.

Prior to the Mergers, under the Investment Advisory Agreement, the Management Fee for each quarter was calculated as follows:

Prior to a liquidity event, the Management Fee payable under the Investment Advisory Agreement was calculated at an annual rate of 0.5% of the Company's average gross assets. A "1iquidity event" is defined as any of: (1) a merger or another transaction approved by the Board of Directors in which the Company's stockholders will receive cash or shares of a publicly traded company (or a company that becomes publicly traded concurrently with the closing of such transaction), which may include an entity advised by the Adviser or its affiliates, (2) an initial public offering ("IPO") or a listing (an "Exchange Listing") of the Common Stock on a national securities exchange, or (3) the sale of all or substantially all of the Company's assets either on a complete portfolio basis or individually followed by a liquidation.

After a liquidity event, the Management Fee payable under the Investment Advisory Agreement was calculated at an annual rate of 1.50% of the Company's average gross assets, provided, that the Management Fee will be calculated at an annual rate of 1.00% of the Company's average gross assets purchased with borrowed funds above 1.0x debt-to-equity (equivalent to $1 of debt outstanding for each $1 of equity), and provided further that for a period of 15 months commencing on the date of the closing of a liquidity event, the Adviser will irrevocably waive Management Fees in excess of 0.5% of the Company's average gross assets. Any fees waived under the Investment Advisory Agreement are not subject to reimbursement to the Adviser.

As of September 30, 2025 and December 31, 2024, $15.5 million and $15.2 million was payable to the Adviser for Management Fees, respectively.

For the three and nine months ended September 30, 2025, the Company incurred $15.5 million and $45.7 million, respectively, in Management Fees under the Amended and Restated Investment Advisory Agreement and the Investment Advisory Agreement. For the three and nine months ended September 30, 2024, the Company incurred $14.6 million and $38.9 million, respectively, in Management Fees under the Amended and Restated Investment Advisory Agreement and the Investment Advisory Agreement.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

*Incentive Fee*

The Company will also pay the Adviser an Incentive Fee consisting of two parts, which are described below. Notwithstanding anything herein to the contrary, the Adviser waived all Incentive Fees for the period from January 7, 2021 (commencement of operations) to December 31, 2023.

The incentive fee consists of two parts. The first part is referred to as the "incentive fee on income" and it is calculated and payable quarterly in arrears based on the Company's "Pre-Incentive Fee Net Investment Income" for the immediately preceding quarter.

"Pre-Incentive Fee Net Investment Income" means interest income, dividend income and any other income (including any other fees, other than fees for providing managerial assistance, such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company's operating expenses for the quarter (including the Management Fee, expenses payable under the Administration Agreement (as defined below) and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount debt instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. For purposes of computing the Company's Pre-Incentive Fee Net Investment Income, the calculation methodology will look through total return swaps as if the Company owned the referenced assets directly.

Under the Amended and Restated Investment Advisory Agreement, effective upon the closing of the Mergers on January 24, 2024, the incentive fee on income for each quarter is calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No incentive fee on income in any calendar quarter in which Pre-Incentive Fee Net Investment Income does not exceed the Preferred Return of 1.50%, or 6.00% annualized, on net assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of Pre-Incentive Fee Net Investment Income, if any, that exceeds the Preferred Return but is less than or equal to 1.8175% in any calendar quarter (7.27% annualized), which portion of the incentive fee on income is referred to as the "catch up" and is intended to provide the Adviser with an incentive fee of 17.5% on all of Pre-Incentive Fee Net Investment Income when Pre-Incentive Fee Net Investment Income reaches 1.8175% (7.27% annualized) in any calendar quarter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For any quarter in which Pre-Incentive Fee Net Investment Income exceeds 1.8175% (7.27% annualized), the incentive fee on income equals 17.5% of the amount of Pre-Incentive Fee Net Investment Income, as the Preferred Return and catch-up will have been achieved.

In addition, Pre-Incentive Fee Net Investment Income does not include any amortization or accretion to interest income resulting solely from merger-related accounting adjustments in connection with the assets acquired in the Mergers.

Prior to the Mergers, under the Investment Advisory Agreement, the incentive fee on income for each quarter was calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No incentive fee on income in any calendar quarter in which the Company's Pre-Incentive Fee Net Investment Income does not exceed the preferred return rate of 1.50%, or 6.00% annualized (the "Preferred Return"), on net assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of Pre-Incentive Fee Net Investment Income, if any, that exceeds the Preferred Return but is less than or equal to 1.765% in any calendar quarter (7.06% annualized). This portion of the incentive fee on income is referred to as the "catch up" and is intended to provide the Adviser with an incentive fee of 15% on all of the Company's Pre-Incentive Fee Net Investment Income when the Company's Pre-Incentive Fee Net Investment Income reaches 1.765% (7.06% annualized) in any calendar quarter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For any quarter in which Pre-Incentive Fee Net Investment Income exceeds 1.765% (7.06% annualized), the incentive fee on income equals 15% of the amount of Pre-Incentive Fee Net Investment Income, as the Preferred Return and catch-up will have been achieved.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

Prior to the Mergers, for any period ending after the closing of a liquidity event, the incentive fee on income for each quarter was calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No incentive fee on income in any calendar quarter in which Pre-Incentive Fee Net Investment Income does not exceed the Preferred Return of 1.50%, or 6.00% annualized, on net assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of Pre-Incentive Fee Net Investment Income, if any, that exceeds the Preferred Return but is less than or equal to 1.8175% in any calendar quarter (7.27% annualized), which portion of the incentive fee on income is referred to as the "catch up" and is intended to provide the Adviser with an incentive fee of 17.5% on all of Pre-Incentive Fee Net Investment Income when Pre-Incentive Fee Net Investment Income reaches 1.8175% (7.27% annualized) in any calendar quarter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For any quarter in which Pre-Incentive Fee Net Investment Income exceeds 1.8175% (7.27% annualized), the incentive fee on income equals 17.5% of the amount of Pre-Incentive Fee Net Investment Income, as the Preferred Return and catch-up will have been achieved.

Notwithstanding the foregoing, for a period of 15 months commencing on the date of the closing of a liquidity event, the Adviser will irrevocably waive any incentive fee on income otherwise payable in excess of any amounts calculated at the pre-IPO or pre-Exchange Listing rates. Any fees waived under the Investment Advisory Agreement are not subject to reimbursement to the Adviser.

As of September 30, 2025, $8.3 million was payable to the Adviser for the incentive fee on income. As of December 31, 2024, $9.0 million was payable to the Adviser for the incentive fee on income.

For the three and nine months ended September 30, 2025, the Company incurred $8.1 million and $25.1 million, in incentive fees on income under the Amended and Restated Investment Advisory Agreement. For the three and nine months ended September 30, 2024, the Company incurred $8.8 million and $26.8 million in incentive fees on income under the Amended and Restated Investment Advisory Agreement.

The second part of the incentive fee, referred to as the "incentive fee on capital gains during operations," is an incentive fee on capital gains earned on cumulative realized capital gains of the Company net of cumulative realized capital losses and unrealized capital depreciation and is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, if earlier). Effective upon the closing of the Mergers on January 24, 2024, under the Amended and Restated Investment Advisory Agreement, the incentive fee on capital gains equals 17.5% of our incentive fee capital gains calculated for periods ending after the date of the Amended and Restated Investment Advisory Agreement, on a cumulative basis from the date of our election to be regulated as a BDC. In addition, the calculation of realized capital gains, realized capital losses and unrealized capital appreciation or depreciation does not include any such amounts resulting solely from merger-related accounting adjustments in connection with the assets acquired in the Mergers.

Prior to the Mergers, and prior to a liquidity event, this fee equaled 15% of the Company's incentive fee capital gains under the Investment Advisory Agreement, which equals realized capital gains of the Company on a cumulative basis from the date of the Company's election to be regulated as a BDC, calculated as of the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid incentive fee on capital gains during operations. Following a liquidity event, the incentive fee on capital gains during operations under the Investment Advisory Agreement equaled 17.5% of the Company's incentive fee capital gains calculated as described above, on a cumulative basis from the date of the Company's election to be regulated as a BDC.

U.S. GAAP requires that the incentive fee accrual be calculated assuming a hypothetical liquidation of the Company based upon investments held at the end of each period. In such a calculation, in order to calculate the accrual for the capital gains incentive fee in accordance with U.S. GAAP for a given period, the Company includes unrealized appreciation in calculating the accrual for the capital gains incentive fee even though such unrealized appreciation is not included in calculating the capital gains incentive fee payable under the Investment Advisory Agreement. There can be no assurance that such unrealized appreciation will be realized in the future. Accordingly, the accrual for the capital gains incentive fee, as calculated and accrued in accordance with U.S. GAAP, does not necessarily represent amounts that will be payable under the Investment Advisory Agreement.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

For the three and nine months ended September 30, 2025 and 2024, the Company did not accrue incentive fees on capital gains in accordance with U.S. GAAP.

*Administration Agreement*

The Company entered into an administration agreement with Benefit Street Partners (the "Administration Agreement"), pursuant to which Benefit Street Partners (in such capacity, the "Administrator") provides the Company with office facilities and certain administrative services necessary for the Company to conduct its business.

The Company reimburses BSP quarterly for all administrative costs and expenses incurred by the Adviser in performing its obligations and providing personnel and facilities under the Administration Agreement and annually for overhead expenses incurred in the course of performing its obligations under the Administration Agreement, including rent, travel, and the allocable portion of the cost of the Company's Chief Compliance Officer and Chief Financial Officer and their respective staffs, including operations and tax professionals, and administrative staff providing support services in respect of the Company. As of September 30, 2025 and December 31, 2024, $2.3 million and $3.2 million was payable to BSP under the Administration Agreement, respectively, which is included in accounts payable and accrued expenses on the consolidated statements of assets and liabilities.

For the three and nine months ended September 30, 2025, the Company incurred $0.9 million and $2.3 million, respectively, in administrative service fees under the Administration Agreement, which are included in the other general and administrative on the consolidated statements of operations. For the three and nine months ended September 30, 2024, the Company incurred $0.8 million and $2.4 million, respectively, in administrative service fees under the Administration Agreement, which are included in the other general and administrative on the consolidated statements of operations.

*Co-Investment Relief*

The 1940 Act generally prohibits BDCs from entering into negotiated co-investments with affiliates absent an order from the SEC. The SEC staff has granted relief sought in an exemptive application that expands the Company's ability to co-invest in portfolio companies with other funds managed by the Adviser or its affiliates ("Affiliated Entities"), subject to compliance with certain conditions (the "Order"), including, among others, that the Company and each Affiliated Entity participating in a transaction acquires, or disposes of, the same class of securities, at the same time, for the same price and with the same conversion, financial reporting and registration rights, and with substantially the same other terms.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 5 - Borrowings**

In accordance with the 1940 Act, the Company is allowed to borrow amounts such that its asset coverage, calculated pursuant to the Investment Company Act, is at least 150% after such borrowing, with certain limited exceptions. The Company's asset coverage requirement applicable to senior securities was reduced from 200% to 150% effective September 23, 2020. As of September 30, 2025, the aggregate principal amount outstanding of the senior securities issued by the Company was $2.4 billion and the Company's asset coverage was 177%.

*MS Credit Facility* 

On March 15, 2021, the Company, FBCC Lending I, LLC, a wholly-owned, special purpose financing subsidiary of the Company ("FBCC Lending"), and the Adviser, as the servicer, entered into a loan and servicing agreement (together with the other documents executed in connection therewith, the "MS Credit Facility") with Morgan Stanley Asset Funding, Inc. as administrative agent, Morgan Stanley Bank, N.A., as the lender, and U.S. Bank National Association as collateral agent, account bank and collateral custodian, that provides for borrowings of up to $100.0 million on a committed basis. Obligations under the MS Credit Facility were secured by a first priority security interest in substantially all of the assets of FBCC Lending, including its portfolio of investments and the Company's equity interest in FBCC Lending. The obligations of FBCC Lending under the MS Credit Facility were nonrecourse to the Company. Any amounts borrowed under the MS Credit Facility matured on March 15, 2025. Prior to the Third Amendment (defined below), borrowings under the MS Credit Facility bore interest at three-month LIBOR, with a LIBOR floor of zero, plus a spread of 2.25%. Interest was payable quarterly in arrears. FBCC Lending was subject to a non-usage fee of 0.50% on the difference between total commitments and the greater of the (i) drawn amounts and (ii) minimum utilization requirement, and, in addition, after the ramp-up period, FBCC Lending would pay interest on undrawn amounts up to the minimum utilization requirement under the MS Credit Facility if drawn amounts were less than such minimum utilization requirement. The Company paid an upfront fee and incurred other customary costs and expenses in connection with the MS Credit Facility.

On July 1, 2021, FBCC Lending amended the MS Credit Facility to, among other things, increase the maximum permissible borrowings under the MS Credit Facility from $100.0 million to $200.0 million on a committed basis (the "First Amendment").

On December 15, 2021, FBCC Lending amended the MS Credit Facility to, among other things, increase the maximum permissible borrowings under the MS Credit Facility from $200.0 million to $250.0 million on a committed basis (the "Second Amendment").

On January 31, 2022, FBCC Lending amended the MS Credit Facility to, among other things, increase the maximum permissible borrowings from $250.0 million to $300.0 million on a committed basis, transition the benchmark rate to Adjusted Term SOFR and included the Canadian Imperial Bank of Commerce ("CIBC") as a lender (the "Third Amendment"). Following the Third Amendment, borrowings under the MS Credit Facility bore interest at Adjusted Term SOFR, with an Adjusted Term SOFR floor of zero, plus a spread of 2.00%. FBCC Lending was subject to non-usage fee of 0.50% on the difference between total commitments and the greater of the (i) drawn amounts and (ii) minimum utilization requirement, and, in addition after the ramp-up period, FBCC Lending would pay interest on undrawn amounts up to the minimum utilization requirement under the MS Credit Facility, at three month SOFR floor of zero, plus spread of 1.125%, if drawn amounts were less than such minimum utilization requirement. The entire facility was subject to a 0.25% administrative agent fee.

On June 28, 2022, FBCC Lending entered into a fourth amendment (together with any documents executed in connection therewith, the "Fourth Amendment") to the MS Credit Facility. The Fourth Amendment, among other things, increased the maximum permissible borrowings under the MS Credit Facility to $400.0 million from $300.0 million on a committed basis and amends the spread on borrowings under the MS Credit Facility to 2.25%.

The MS Credit Facility was refinanced into the JPM Credit Facility (defined below) on October 4, 2023. As a result of the refinancing to the JPM Credit Facility, the Company incurred a realized loss on extinguishment of debt of $1.5 million.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

*MS Subscription Facility*

On April 22, 2021, the Company entered into a $50.0 million revolving credit agreement (the "MS Subscription Facility") with Morgan Stanley Asset Funding, Inc., as administrative agent and sole lead arranger, and Morgan Stanley Bank, N.A., as the letter of credit issuer and lender. The MS Subscription Facility was subject to certain restrictions, including availability under the borrowing base, which is based on unfunded capital commitments. The amount of permissible borrowings under the MS Subscription Facility could be increased up to an aggregate of $150.0 million with the consent of the lenders. The MS Subscription Facility had a maturity date of April 22, 2022, which could be extended for an additional two terms of not more than 12 months each with the consent of the administrative agent and lenders. On April 20, 2022, the Company entered into a first amendment (the "First Amendment") to the MS Subscription Facility, which extended the maturity date to April 21, 2023, which may be extended for an additional term of not more than 12 months each with the consent of the administrative agent and lenders. On September 30, 2022, pursuant to the terms of the agreement, the Company voluntarily reduced commitments from $50.0 million to $44.5 million and on December 9, 2022, pursuant to the terms of the agreement, the Company voluntarily reduced commitments from $44.5 million to $25.5 million (together, the "MS Subscription Facility Downsizes").

Prior to the First Amendment, the MS Subscription Facility bore interest at a rate of: (i) with respect LIBOR Rate Loans, Adjusted LIBOR (as defined in the MS Subscription Facility) for the applicable interest period plus 2.00% per annum and (ii) with respect to Base Rate Loans, the greatest of (a) the Prime Rate in effect on such day plus 1.00% per annum, (b) the federal funds rate in effect on such day plus 0.50%, plus 1.00% per annum and (c) except during any period of time during which LIBOR is unavailable, one-month Adjusted LIBOR plus, without duplication, 100 basis points per annum. The Company paid an upfront fee and incurred other customary costs and expenses in connection with the MS Subscription Facility. Subsequent to the First Amendment, the MS Subscription Facility bore interest at a rate of: (i) with respect to Term SOFR Loans, Term SOFR with a one-month Interest Period plus 2.10% per annum and (ii) with respect to Base Rate Loans, the greatest of (a) the Prime Rate in effect on such day plus 100 basis points (1.00%) per annum, (b) the federal funds rate in effect on such day plus 0.50% plus 1.00% per annum and (c) except during any period of time during which Term SOFR is unavailable, Term SOFR for a one-month tenor in effect on such day plus without duplication, 100 basis points (1.00%) per annum plus 100 basis points (1.00%) per annum. The Company paid an upfront fee and incurred other customary costs and expenses in connection with the First Amendment to MS Subscription Facility. In addition, the Company was subject to an unused commitment fee of 0.30%.

The MS Subscription Facility was terminated on March 29, 2023.

*JPM Credit Facility*

On October 4, 2023, the Company refinanced the MS Credit Facility into a $400.0 million credit facility with FBCC Jupiter Funding, LLC, a wholly-owned, consolidated special purpose financing subsidiary of the Company, as borrower ("Jupiter Funding"), the Adviser, as portfolio manager, the lenders party thereto, U.S. Bank National Association, as securities intermediary, U.S. Bank Trust Company, National Association as collateral administrator and collateral agent, and JPMorgan Chase Bank, National Association, as administrative agent (the "JPM Credit Facility"). The JPM Credit Facility provides for borrowings through October 4, 2026, and any amounts borrowed under the JPM Credit Facility will mature on October 4, 2027. Borrowings under the JPM Credit Facility bore interest at a benchmark rate of SOFR, plus a margin of 2.75% per annum, which was inclusive of an administrative agent fee. Interest is payable quarterly in arrears. Jupiter Funding was subject to a non-usage fee of 0.75%, which was inclusive of the administrative agent fee, to the extent the commitments available under the JPM Credit Facility have not been borrowed. Jupiter Funding paid an upfront fee and incurred other customary costs and expenses in connection with the JPM Credit Facility.

On December 27, 2024, Jupiter Funding entered into the First Amendment to Loan and Security Agreement (the "First Amendment"), which amends the JPM Credit Facility, by and among Jupiter Funding, as borrower, the Company, as portfolio manager, the lenders party thereto, U.S. Bank Trust Company, National Association, as collateral agent and collateral administrator, U.S. Bank National Association, as securities intermediary, and JPMorgan Chase Bank, National Association, as administrative agent.

The First Amendment, among other things, (i) extends the Reinvestment Period from October 2026 to October 2028, (ii) increases the commitment increase option from total Financing Commitments of up to $800.0 million to total Financing Commitments of up to $1,050.0 million, (iii) increases the Facility Commitments from $400.0 million to $800.0 million, (iv)

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

extends the Scheduled Termination Date from October 2027 to October 2029, (v) reduces the Applicable Margin from 2.55% to 2.25%, and (vi) removes the administrative agent fee.

On December 27, 2024, concurrent with the closing of the First Amendment, FBLC 57th Street Funding LLC (formerly known as BDCA 57th Street Funding, LLC, "FBLC JPM Credit Facility"), a wholly-owned subsidiary of the Company, merged with and into Jupiter Funding (the "Credit Facility Merger") pursuant to an Agreement and Plan of Merger, dated as of December 27, 2024 (the "Merger Agreement"), by and between FBCC Jupiter and FBLC JPM Credit Facility, with Jupiter Funding surviving the Credit Facility Merger.

Upon consummation of the Credit Facility Merger, the Amended and Restated Loan and Security Agreement, dated as of April 21, 2021, as amended, among FBLC JPM Credit Facility, as borrower, the Company, as portfolio manager, the lenders party thereto, U.S. Bank Trust Company, National Association, as collateral agent and collateral administrator, U.S. Bank National Association, as securities intermediary, and JPMorgan Chase Bank, National Association, as administrative agent, was terminated and all outstanding obligations were assumed into Jupiter Facility.

On June 30, 2025, Jupiter Funding entered into the Second Amendment to Loan and Security Agreement (the "Second Amendment"), which amends the JPM Credit Facility, by and among Jupiter Funding, as borrower, the Company, as portfolio manager, the lenders party thereto, U.S. Bank Trust Company, National Association, as collateral agent and collateral administrator, U.S. Bank National Association, as securities intermediary, and JPMorgan Chase Bank, National Association, as administrative agent.

The Second Amendment, among other things, (i) increases the Facility Commitments from $800.0 million to $1,050.0 million and (ii) reduces the Applicable Margin from 2.25% to 2.15%.

On September 9, 2025, Jupiter Funding entered into the Third Amendment to Loan and Security Agreement (the "Third Amendment"), which amends the JPM Credit Facility, by and among Jupiter Funding, as borrower, the Company, as portfolio manager, the lenders party thereto, U.S. Bank Trust Company, National Association, as collateral agent and collateral administrator, U.S. Bank National Association, as securities intermediary, and JPMorgan Chase Bank, National Association, as administrative agent. The Third Amendment allows for asset-based financing investments within Jupiter Funding.

*FBLC JPM Credit Facility*

On January 24, 2024, as a result of the consummation of the Mergers, the Company, through a wholly-owned, consolidated special purpose financing subsidiary, 57th Street, became party to a $400.0 million revolving credit facility with JPMorgan, and U.S. Bank Trust Company, National Association, as collateral agent, collateral administrator and securities intermediary (the "FBLC JPM Credit Facility").

The FBLC JPM Credit Facility provides for borrowings through September 15, 2026, and any amounts borrowed under the FBLC JPM Credit Facility were scheduled to mature on September 15, 2027. The FBLC JPM Credit Facility had an interest rate of SOFR plus 2.80% (subject to further increases consistent with the terms of the FBLC JPM Credit Facility), which was inclusive of an administrative agent fee. The FBLC JPM Credit Facility was subject to a non-usage fee to be 0.75%, inclusive of an administrative agent fee. The non-usage fee of 0.75% (inclusive of an administrative agent fee) applied to the first 20% of the unused balance and increases to 3.00% for any remaining unused balance. FBCC and 57th Street were permitted to submit a commitment increase request to up to $800.0 million.

57th Street's obligations under the FBLC JPM Credit Facility were secured by a first priority security interest in substantially all of the assets of 57th Street, including its portfolio of investments and FBCC's equity interest in 57th Street. The obligations of 57th Street under the FBLC JPM Credit Facility were non-recourse to FBCC.

In connection with the FBLC JPM Credit Facility, FBCC and 57th Street have made certain representations and warranties and are required to comply with various covenants and other customary requirements. The FBLC JPM Credit Facility contained customary default provisions pursuant to which the administrative agent and the lenders under the FBLC JPM Credit Facility may terminate FBCC in its capacity as collateral manager/portfolio manager under the FBLC JPM Credit Facility. Upon the occurrence of an event of default under the FBLC JPM Credit Facility, the administrative agent or the lenders may have declared the outstanding advances and all other obligations under the FBLC JPM Credit Facility immediately due and payable.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

On December 27, 2024, FBLC JPM Credit Facility merged with and into Jupiter Funding pursuant to the Merger Agreement by and between FBCC Jupiter and FBLC JPM Credit Facility, with Jupiter Funding surviving the Credit Facility Merger.

*JPM Revolver Facility*

On January 24, 2024, as a result of the consummation of the Mergers, the Company became party to a $505.0 million revolving credit facility with JPMorgan, as administrative agent and as collateral agent, Sumitomo Mitsui Banking Corporation, and Wells Fargo Bank, National Association as syndication agents, as well as other Lender parties (the "JPM Revolver Facility").

The JPM Revolver Facility provides for borrowings through December 8, 2027, and any amounts borrowed under the JPM Revolver Facility will mature on December 8, 2028. The JPM Revolver Facility is priced at three-month Term SOFR, plus a spread calculated based upon the composition of loans in the collateral pool, which will not exceed 1.98% per annum. Interest is payable quarterly in arrears. The Company will be subject to a non-usage fee of 0.38% to the extent the commitments available under the JPM Revolver Facility have not been borrowed.

On January 16, 2025, the Company amended and restated the JPM Revolver Facility (the "Second A&R Credit Facility"), with the lenders parties thereto, JPMorgan, as administrative agent and collateral agent, Sumitomo Mitsui Banking Corporation ("Sumitomo") and Wells Fargo Bank, National Association, as syndication agents, and JPMorgan, Sumitomo and Wells Fargo Securities, LLC as joint bookrunners and joint lead arrangers (such second amended and restated agreement, the "Second A&R Credit Facility").

The Second A&R Credit Facility, among other things, increases the aggregate amount of the lenders' commitments to $780.0 million and includes an accordion provision to permit increases to the aggregate amount to an amount of up to $1.17 billion, extends the period for borrowings under the Second A&R Credit Facility through January 16, 2029 and extends the maturity date for any amounts borrowed under the Second A&R Credit Facility to January 16, 2030. The other material terms were unchanged. The Company agreed to pay administrative agent fees and other customary costs and expenses incurred in connection with the Second A&R Credit Facility.

In connection with the JPM Revolver Facility, FBCC has made certain customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. The JPM Revolver Facility contains customary events of default for similar financing transactions. Upon the occurrence and during the continuation of an event of default, JPM may declare the outstanding advances and all other obligations under the JPM Revolver Facility immediately due and payable.

*Wells Fargo Credit Facility*

On January 24, 2024, as a result of the consummation of the Mergers, the Company became party to a $300.0 million revolving credit facility with the Company, as collateral manager, Funding I, a wholly owned, consolidated special purpose financing subsidiary, as borrower, the lenders party thereto, Wells Fargo, as administrative agent, and U.S. Bank Trust Company, National Association, as collateral agent and collateral custodian (the "Wells Fargo Credit Facility").

The Wells Fargo Credit Facility provides for borrowings through August 25, 2026, and any amounts borrowed under the Wells Fargo Credit Facility will mature on August 25, 2028. The Wells Fargo Credit Facility had an interest rate of daily simple SOFR (with a daily simple SOFR floor of zero), plus a spread of 2.75% per annum. Pursuant to an amendment to the loan and servicing agreement entered into on August 30, 2024 ("Wells Fargo Credit Facility Amendment"), the spread was reduced to 2.15% per annum from 2.75% per annum. Interest is payable quarterly in arrears. Funding I will be subject to a non-usage fee to the extent the commitments available under the Wells Fargo Credit Facility have not been borrowed. The non-usage fee per annum was 0.50% for the first 25% of the unused balance and increases to 2.00% for any remaining unused balance. Pursuant to the Wells Fargo Credit Facility Amendment, the non-usage fee per annum is now 0.50% for the first 70% of the unused balance and increases to 2.00% for any remaining unused balance.

Funding I's obligations under the Wells Fargo Credit Facility are secured by a first priority security interest in substantially all of the assets of Funding I, including its portfolio of investments and FBCC's equity interest in Funding I. The obligations of Funding I under the Wells Fargo Credit Facility are non-recourse to FBCC.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

In connection with the Wells Fargo Credit Facility, FBCC and Funding I have made certain representations and warranties and are required to comply with various covenants and other customary requirements. The Wells Fargo Credit Facility contains customary default provisions pursuant to which the administrative agent and the lenders under the Wells Fargo Credit Facility may terminate FBCC in its capacity as collateral manager/portfolio manager under the Wells Fargo Credit Facility. Upon the occurrence of an event of default under the Wells Fargo Credit Facility, the administrative agent or the lenders may declare the outstanding advances and all other obligations under the Wells Fargo Credit Facility immediately due and payable.

*2024 Notes*

On January 24, 2024, as a result of the consummation of the Mergers, the Company became an obligor of $100.0 million aggregate principal amount of 4.85% fixed rate notes due 2024 (the "2024 Notes"), originally issued by FBLC. The 2024 Notes were not registered under the Securities Act and were not offered or sold in the United States absent registration or an applicable exemption from registration. The 2024 Notes were issued pursuant to the Indenture dated as of December 19, 2017 (the "2017 Indenture") and a Third Supplemental Indenture, dated as of December 5, 2019, with U.S. Bank Trust Company, National Association, as trustee. The 2024 Notes matured on December 15, 2024. The 2024 Notes bore interest at a rate of 4.85% per year payable semi-annually on June 15 and December 15 of each year, commencing on June 15, 2020. The 2024 Notes were generally unsecured obligations of the Company that rank senior in right of payment to all of the Company's existing and future indebtedness that was expressly subordinated in right of payment to the 2024 Notes. The 2024 Notes ranked equally in right of payment with all of the Company's existing and future senior liabilities that are not so subordinated, effectively junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and structurally junior to all existing and future indebtedness incurred by the Company's subsidiaries, financing vehicles, or similar facilities, including credit facilities entered into by the Company's wholly owned, special purpose financing subsidiaries. The 2017 Indenture contained certain covenants, including covenants requiring the Company to (i) comply with the asset coverage requirements of the 1940 Act, whether or not it is subject to those requirements, and (ii) provide financial information to the holders of the 2024 Notes and U.S. Bank Trust Company, National Association if the Company is no longer subject to the reporting requirements under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These covenants were subject to important limitations and exceptions that are described in the 2017 Indenture. In addition, if a change of control repurchase event, as defined in the 2017 Indenture, occurred prior to maturity, holders of the 2024 Notes would have had the right, at their option, to require the Company to repurchase for cash some or all of the 2024 Notes at a repurchase price equal to 100% of the principal amount of the 2024 Notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.

The 2024 Notes were paid off upon maturity on December 15, 2024.

*2026 Notes*

On January 24, 2024, as a result of the consummation of the Mergers, the Company became an obligor of $300.0 million aggregate principal amount of 3.25% fixed rate notes due 2026 (the "Restricted 2026 Notes"), originally issued by FBLC. The Restricted 2026 Notes were issued pursuant to the Indenture dated as of March 29, 2021 (the "2021 Indenture"), and a Supplemental Indenture, dated as of March 29, 2021, with U.S. Bank Trust Company, National Association as trustee. Pursuant to a Registration Statement on Form N-14 (File No. 333-257321), on September 22, 2021, holders of the Restricted 2026 Notes were offered the opportunity to exchange their Restricted 2026 Notes for new registered notes with substantially identical terms (the "Unrestricted 2026 Notes" and, together with the Restricted 2026 Notes, the "2026 Notes"), through which holders representing 99.88% of the outstanding principal of the then Restricted 2026 Notes obtained Unrestricted 2026 Notes. The 2026 Notes will mature on March 30, 2026, unless repurchased or redeemed in accordance with their terms prior to such date. The 2026 Notes bear interest at a rate of 3.25% per year payable semi-annually on March 30 and September 30 of each year, commencing on September 30, 2021. The 2026 Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2026 Notes. The 2026 Notes rank equally in right of payment with all of the Company's existing and future senior liabilities that are not so subordinated, effectively junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and structurally junior to all existing and future indebtedness incurred by the Company's subsidiaries, financing vehicles, or similar facilities, including credit facilities entered into by the Company's wholly owned, special purpose financing subsidiaries. The 2021 Indenture contains certain covenants, including covenants requiring the Company to (i) comply with the asset coverage requirements of the 1940 Act, whether or not it is subject to those requirements, and (ii) provide financial information to the holders of the 2026 Notes and the Trustee if the Company is no longer subject to the reporting requirements under the

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

Exchange Act. These covenants are subject to important limitations and exceptions that are described in the 2021 Indenture. In addition, if a change of control repurchase event, as defined in the 2021 Indenture, occurs prior to maturity, holders of the 2026 Notes will have the right, at their option, to require the Company to repurchase for cash some or all of the 2026 Notes at a repurchase price equal to 100% of the principal amount of the 2026 Notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.

*2029 Notes*

On May 6, 2024, the Company issued $300.0 million aggregate principal amount of 7.20% notes due 2029 (the "2029 Notes") in a private offering to qualified institutional buyers in accordance with Rule 144A under the Securities Act, and to non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The 2029 Notes were issued pursuant to the 2021 Indenture, and a Third Supplemental Indenture, dated as of May 6, 2024 (the "Third Supplemental Indenture" and, together with the 2021 Indenture, the "2029 Indenture"), between the Company and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes will mature on June 15, 2029 unless repurchased or redeemed in accordance with their terms prior to such date. The 2029 Notes bear interest at a rate of 7.20% per year payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2024. The 2029 Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2029 Notes, rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's consolidated and unconsolidated subsidiaries, financing vehicles or similar facilities. The 2029 Indenture contains certain covenants, including covenants requiring the Company to comply with the asset coverage requirements of the 1940 Act, whether or not it is subject to those requirements, and to provide financial information to the holders of the 2029 Notes and the Trustee if the Company is no longer subject to the reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are described in the 2029 Indenture. In addition, if a change of control repurchase event, as defined in the 2029 Indenture, occurs prior to maturity, holders of the 2029 Notes will have the right, at their option, to require the Company to repurchase for cash some or all of the 2029 Notes at a repurchase price equal to 100% of the principal amount of the 2029 Notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. In connection with the offer and sale of the 2029 Notes, the Company entered into a Registration Rights Agreement, dated as of May 6, 2024 (the "Registration Rights Agreement"), with J.P. Morgan Securities LLC, BofA Securities, Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC, as the representatives of the Initial Purchasers. Pursuant to the Registration Rights Agreement, the Company is obligated to file with the SEC a registration statement relating to an offer to exchange the 2029 Notes for new notes issued by the Company that are registered under the Securities Act and otherwise have terms substantially identical to those of the 2029 Notes, and to use its commercially reasonable efforts to cause such registration statement to be declared effective. If the Company is not able to effect the exchange offer, the Company will be obligated to file a shelf registration statement covering the resale of the 2029 Notes and use its commercially reasonable efforts to cause such registration statement to be declared effective. If the Company fails to satisfy its registration obligations by certain dates specified in the Registration Rights Agreement, it will be required to pay additional interest to the holders of the 2029 Notes.

On October 22, 2024, the Company priced an offering of an additional $100.0 million aggregate principal amount of its 7.20% 2029 Notes in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The 7.20% 2029 Notes are an additional issuance of, and form a single series with, the previously issued $300.0 million aggregate principal amount of 7.20% Notes due 2029 on May 6, 2024, increasing the outstanding aggregate principal amount of the series to $400.0 million. The 7.20% 2029 Notes will mature on June 15, 2029, and may be redeemed in whole or in part at the Company's option at any time or from time to time at the redemption prices set forth in the Third Supplemental Indenture. The offering closed on October 29, 2024.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

The following table represents borrowings as of September 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Maturity Date** | **Total Aggregate Borrowing Capacity** | **Total Principal Outstanding** | **Less Deferred Financing Costs** | **Amount per Consolidated Statements of Assets and Liabilities** |
| JPM Credit Facility | 10/4/2029 | $1050000 | $1016969 | $(4526) | $1012443 |
| JPM Revolver Facility | 1/16/2030 | 780000 | 299917 | (2800) | 297117 |
| Wells Fargo Credit Facility | 8/25/2028 | 300000 | 300000 |  | 300000 |
| 2026 Notes | 3/30/2026 | 300000 | 300000 |  | 300000 |
| 2029 Notes | 6/15/2029 | 400000 | 398669 | (4509) | 394160 |
| Total |  | $2830000 | $2315555 | $(11835) | $2303720 |

---

The following table represents borrowings as of December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Maturity Date** | **Total Aggregate Borrowing Capacity** | **Total Principal Outstanding** | **Less Deferred Financing Costs** | **Amount per Consolidated Statements of Assets and Liabilities** |
| JPM Credit Facility | 10/4/2029 | $800000 | $625669 | $(3403) | $622266 |
| JPM Revolver Facility | 12/8/2028 | 505000 | 439216 |  | 439216 |
| Wells Fargo Credit Facility | 8/25/2028 | 300000 | 300000 |  | 300000 |
| 2026 Notes | 3/30/2026 | 300000 | 300000 |  | 300000 |
| 2029 Notes | 6/15/2029 | 400000 | 398400 | (5144) | 393256 |
| Total |  | $2305000 | $2063285 | $(8547) | $2054738 |

---

The weighted average annualized interest cost for all facility borrowings and unsecured notes for the nine months ended September 30, 2025 and 2024 was 6.18% and 6.88%, respectively. The average daily debt outstanding for facility borrowings and unsecured notes for the nine months ended September 30, 2025 and 2024 was $2.1 billion and $1.5 billion, respectively. The maximum debt outstanding for facility borrowings and unsecured notes for the nine months ended September 30, 2025 and 2024 was $2.4 billion and $2.0 billion, respectively.

*Short-Term Borrowings*

From time to time, the Company finances the purchase of certain investments through repurchase agreements. In the repurchase agreements, the Company enters into a trade to sell an investment and contemporaneously enter into a trade to buy the same investment back on a specified date in the future with the same counterparty. Investments sold under repurchase agreements are accounted for as collateralized borrowings as the sale of the investment does not qualify for sale accounting under *ASC Topic 860—Transfers and Servicing* and remains as an investment on the consolidated statements of assets and liabilities. The Company uses repurchase agreements as a short-term financing alternative. As of September 30, 2025 and December 31, 2024, the Company had no short-term borrowings outstanding. For the three and nine months ended September 30, 2025 and 2024, the Company recorded no interest expense in connection with short-term borrowings. For the three and nine months ended September 30, 2025 and 2024, the Company did not have short-term borrowings.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

*Secured Borrowings*

On August 21, 2023, the Company entered into a total return swap ("TRS") with Nomura. A TRS is a contract in which one party agrees to make periodic payments to another party based on the change in the market value of the assets underlying the TRS, which may include a specified security, basket of securities or securities indices during the specified period, in return for periodic payments based on a fixed or variable interest rate. The Company pays interest to Nomura for each loan at a rate equal to three-month SOFR plus 3.60% per annum. On April 24, 2024, the rate was amended to three-month SOFR plus 2.80% per annum. Upon the termination or repayment of any loan under the TRS, the Company will either receive from Nomura the appreciation in the value of such loan or pay to Nomura any depreciation in the value of such loan. The scheduled termination date for the TRS was February 17, 2025. On February 17, 2025, the Company amended the contract and extended the scheduled termination date to April 21, 2025. On March 18, 2025, the Company terminated the TRS.

As of September 30, 2025, the Company had no total return swaps outstanding. As of December 31, 2024, all total return swaps on the Nomura TRS were entered into contemporaneously with the Company's sale of their reference assets. Due to the Company's continuing involvement in these assets, these assets are not derecognized under *ASC Topic 860 -- Transfers and Servicing*, and are presented on the consolidated schedules of investments. Financing amounts related to these assets are presented as secured borrowings on the consolidated statement of assets and liabilities. Any margin paid to the counterparty under the terms of the TRS agreement is included in the "Due from broker" on the Company's consolidated statements of assets and liabilities.

The TRS is subject to the SEC rule related to the use of derivatives, reverse repurchase agreements and certain other transactions by registered investment companies. The rule requires that the Company trade derivatives and other transactions that create future payment or delivery obligations subject to a value-at-risk leverage limit and certain derivatives risk management program and reporting requirements. Generally, these requirements apply unless the Company qualifies as a "limited derivatives user," as defined in the rule, in which case certain exceptions to these conditions would apply. The Company may qualify as a limited derivatives user if it adopts and implements written policies and procedures reasonably designed to manage the Company's derivatives risk and the Company's derivatives exposure does not exceed 10 percent of the Company's net assets as calculated in accordance with the rule.

As of September 30, 2025, the Company had no secured borrowings outstanding. As of December 31, 2024, the Company had secured borrowings outstanding of $30.8 million. For the three months ended September 30, 2025, the Company recorded no interest expense. For the nine months ended September 30, 2025, the Company recorded interest expense of $0.4 million, in connection with secured borrowings. For the three and nine months ended September 30, 2024, the Company recorded interest expense of $0.5 million and $1.5 million, respectively, in connection with secured borrowings. For the nine months ended September 30, 2025 and 2024, the Company had an average outstanding balance of secured borrowings of $8.4 million and $31.3 million, respectively, and bore interest at a weighted average rate of 5.71% and 6.39%, respectively.

The following table represents interest and debt fees for the three and nine months ended September 30, 2025:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| | **Interest Rate** | **Non-Usage Rate** | **Interest Expense** | **Deferred Financing Costs** <sup>(1)</sup> | **Other Fees** <sup>(2)</sup> | **Interest Rate** | **Non-Usage Rate** | **Interest Expense** | **Deferred Financing Costs** <sup>(1)</sup> | **Other Fees** <sup>(2)</sup> |
| JPM Credit Facility | <sup>(3)</sup> | <sup>(4)</sup> | $12366 | $284 | $557 | <sup>(3)</sup> | <sup>(4)</sup> | $33773 | $652 | $1153 |
| JPM Revolver Facility | <sup>(5)</sup> | 0.38% | 6935 | 164 | 358 | <sup>(5)</sup> | 0.38% | 22215 | 459 | 926 |
| Wells Fargo Credit Facility | <sup>(6)</sup> | <sup>(7)</sup> | 4980 |  | 26 | <sup>(6)</sup> | <sup>(7)</sup> | 14753 |  | 79 |
| 2026 Notes | 3.25% | n/a | 2437 |  |  | 3.25% | n/a | 7313 |  |  |
| 2029 Notes | 7.20% | n/a | 7200 | 306 | 91 | 7.20% | n/a | 21600 | 894 | 269 |
| Secured borrowings | <sup>(8)</sup> | n/a |  |  |  | <sup>(8)</sup> | n/a | 359 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  |  | $33918 | $754 | $1032 |  |  | $100013 | $2005 | $2427 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

(1)&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes non-usage fees, custody fees, amortization of premium/discount on unsecured notes, and administrative agent fees.

(3)&nbsp;&nbsp;&nbsp;&nbsp;From January 1, 2025 through June 29, 2025 the JPM Credit Facility had an interest rate of three-month Term SOFR, plus a spread of 2.25% per annum. From June 30, 2025 to September 30, 2025, the interest rate was amended to three-month Term SOFR, plus a spread of 2.15% per annum.

(4)&nbsp;&nbsp;&nbsp;&nbsp;From January 1, 2025 through September 30, 2025, the non-usage fee per annum was 0.55%.

(5)&nbsp;&nbsp;&nbsp;&nbsp;From January 1, 2025 through September 30, 2025, the interest rate was three-month Term SOFR, plus a spread calculated based upon the composition of the loans in the collateral pool, which will not exceed 1.98% per annum.

(6)&nbsp;&nbsp;&nbsp;&nbsp;From January 1, 2025 through September 30, 2025, the interest rate was amended to be daily simple SOFR, with a daily simple SOFR floor of zero, plus a spread of 2.15% per annum.

(7)&nbsp;&nbsp;&nbsp;&nbsp;From January 1, 2025 through September 30, 2025, the non-usage fee per annum was 0.50% for the first 70% of the unused balance and increases to 2.00% for any remaining unused balance.

(8)&nbsp;&nbsp;&nbsp;&nbsp;From January 1, 2025 through March 18, 2025, the interest rate was three-month SOFR plus a spread of 2.80% per annum.

The following table represents interest and debt fees for the three and nine months ended September 30, 2024:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** |
| | **Interest Rate** | **Non-Usage Rate** | **Interest Expense** | **Deferred Financing Costs** <sup>(1)</sup> | **Other Fees** <sup>(2)</sup> | **Interest Rate** | **Non-Usage Rate** | **Interest Expense** | **Deferred Financing Costs** <sup>(1)</sup> | **Other Fees** <sup>(2)</sup> |
| JPM Credit Facility | S+ 2.75% | 0.75% | $6043 | $139 | $384 | S+ 2.75% | 0.75% | $18393 | $415 | $1089 |
| Wells Fargo Credit Facility | <sup>(3)</sup> | <sup>(4)</sup> | 4914 |  | 115 | <sup>(3)</sup> | <sup>(4)</sup> | 12996 |  | 324 |
| FBLC JPM Credit Facility | <sup>(5)</sup> | <sup>(6)</sup> | 6486 |  | 356 | <sup>(5)</sup> | <sup>(6)</sup> | 17681 |  | 947 |
| JPM Revolver Facility | <sup>(7)</sup> | 0.38% | 4579 |  | 247 | <sup>(7)</sup> | 0.38% | 10681 |  | 782 |
| 2024 Notes | 4.85% | n/a | 1212 |  |  | 4.85% | n/a | 3341 |  | 10 |
| 2026 Notes | 3.25% | n/a | 2437 |  |  | 3.25% | n/a | 6764 |  | 10 |
| 2029 Notes | 7.20% | n/a | 5562 | 218 |  | 7.20% | n/a | 8960 | 351 |  |
| Secured borrowings | <sup>(8)</sup> | n/a | 474 |  |  | <sup>(8)</sup> | n/a | 1502 | 131 |  |
| Total |  |  | $31707 | $357 | $1102 |  |  | $80318 | $897 | $3162 |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes non-usage fees, custody fees, and administrative agent fees.

(3) &nbsp;&nbsp;&nbsp;&nbsp;From January 24, 2024 through August 30, 2024, the Wells Fargo Credit Facility had an interest rate of daily simple SOFR, with a daily simple SOFR floor of zero, plus a spread of 2.75% per annum. From August 31, 2024 through September 30, 2024, the interest rate was amended to be daily simple SOFR, with a daily simple SOFR floor of zero, plus a spread of 2.15% per annum.

(4) &nbsp;&nbsp;&nbsp;&nbsp;From January 24, 2024 through August 30, 2024, the non-usage fee per annum was 0.50% for the first 25% of the unused balance and increases to 2.00% for any remaining unused balance. From August 31, 2024 through September 30, 2024, the non-usage fee per annum was 0.50% for the first 70% of the unused balance and increases to 2.00% for any remaining unused balance.

(5) &nbsp;&nbsp;&nbsp;&nbsp;From January 24, 2024 through September 30, 2024, the JPM Credit Facility had an interest rate of three-month Term SOFR, plus a spread of 2.80% per annum, inclusive of an administrative agent fee of 0.20%.

(6) &nbsp;&nbsp;&nbsp;&nbsp;From January 24, 2024 through September 30, 2024, the non-usage fee per annum was 0.75%, inclusive of an administrative fee of 0.20%.

(7) &nbsp;&nbsp;&nbsp;&nbsp;From January 24, 2024 through September 30, 2024, the interest rate was three-month Term SOFR, plus a spread calculated based upon the composition of the loans in the collateral pool, which will not exceed 1.98% per annum.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

(8) From January 1, 2024 through April 23, 2024, the interest rate was three-month SOFR plus 3.60% per annum. From April 24, 2024 through September 30, 2024, the interest rate was amended to be three-month SOFR plus 2.80% per annum.&nbsp;&nbsp;&nbsp;&nbsp;

With respect to all of the FBLC borrowings assumed by the Company, interest expense and debt fees for the period from January 24, 2024 to September 30, 2025 were recognized by the Company and included within the related debt disclosures herein. Disclosures exclude any expenses from the FBLC borrowings incurred prior to the Mergers.

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate fair value. The fair value of short-term financial instruments such as cash and cash equivalents, due to affiliates, accounts payable, short-term borrowings, and secured borrowings approximate their carrying value on the accompanying consolidated statements of assets and liabilities due to their short-term nature.

At September 30, 2025, the Company had no secured borrowings outstanding. At December 31, 2024, the carrying amount of the Company's secured borrowings approximated their fair value. The fair values of the Company's debt obligations are 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. The fair value of the Company's borrowings is estimated based upon market interest rates for the Company's own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of September 30, 2025 and December 31, 2024, the Company's borrowings would be deemed to be Level 3, as defined in *[Note 3 - Fair Value of Financial Instruments](#ica7834b2a94a41c89a6a99cf91879fe8_46)*.

The fair values of the Company's remaining financial instruments that are not reported at fair value on the accompanying consolidated statements of assets and liabilities are reported below:

---

| | | | |
|:---|:---|:---|:---|
| | **Level** | **Carrying Amount as of September 30, 2025** | **Fair Value as of September 30, 2025** |
| JPM Credit Facility | 3 | $1016969 | $1016969 |
| JPM Revolver Facility | 3 | 299917 | 299917 |
| Wells Fargo Credit Facility | 3 | 300000 | 300000 |
| 2026 Notes | 3 | 300000 | 297834 |
| 2029 Notes | 3 | 398669 | 414428 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  | $2315555 | $2329148 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Level** | **Carrying Amount as of December 31, 2024** | **Fair Value as of December 31, 2024** |
| JPM Credit Facility | 3 | $625669 | $625669 |
| JPM Revolver Facility | 3 | 439216 | 439216 |
| Wells Fargo Credit Facility | 3 | 300000 | 300000 |
| 2026 Notes | 3 | 300000 | 291444 |
| 2029 Notes | 3 | 398400 | 407968 |
| Total |  | $2063285 | $2064297 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 6 - Derivatives** 

*Interest Rate Swap*

The Company may enter into interest rate swaps from time to time in an effort to mitigate its exposure to fluctuations in interest rates. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party's stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. These contracts are marked-to-market by recognizing the difference between the contract exchange rate and the current market rate as unrealized appreciation or depreciation on the consolidated statements of assets and liabilities. As of September 30, 2025, there was $0.4 million of unrealized depreciation on the interest rate swap. As of September 30, 2024, there was no unrealized appreciation or depreciation on the interest rate swap given the investment was made on December 31, 2024. Realized gains or losses are recognized when contracts are settled.

As of September 30, 2025 and December 31, 2024, the interest rate swap is classified within Level 2 of the fair value hierarchy and is subject to ISDA Master Agreements or similar agreements. Refer to the consolidated schedules of investments for additional details regarding the interest rate swap.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 7 - Commitments and Contingencies**

*Commitments*

In the ordinary course of business, the Company may enter into future funding commitments. As of September 30, 2025, the Company had unfunded commitments on delayed draw term loans of $426.4 million, unfunded commitments on revolver term loans of $268.0 million, and unfunded commitments on term loans of $0.0 million. As of December 31, 2024, the Company had unfunded commitments on delayed draw term loans of $241.0 million, unfunded commitments on revolver term loans of $207.9 million, and unfunded commitments on term loans of $0.6 million. The Company maintains sufficient cash on hand, and available borrowings to fund such unfunded commitments.

As of September 30, 2025, the Company's unfunded commitments consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Company Name** | **Investment Type** | **Commitment Type** | **Total Commitment** | **Remaining Commitment** |
| Accel International Holdings, LLC | Senior Secured First Lien Debt | Revolver | $4762 | $4762 |
| ADCS Clinics Intermediate Holdings, LLC | Senior Secured First Lien Debt | Revolver | 1797 | 1540 |
| Adelaide Borrower, LLC | Senior Secured First Lien Debt | Delayed Draw | 7960 | 7960 |
| Adelaide Borrower, LLC | Senior Secured First Lien Debt | Revolver | 4989 | 4989 |
| Amylu Borrower Sub, LLC | Senior Secured First Lien Debt | Delayed Draw | 6778 | 6778 |
| Amylu Borrower Sub, LLC | Senior Secured First Lien Debt | Revolver | 7906 | 7341 |
| Arch Global Precision, LLC | Senior Secured First Lien Debt | Revolver | 1008 | 107 |
| Arctic Holdco, LLC | Senior Secured First Lien Debt | Delayed Draw | 5254 | 2003 |
| Arctic Holdco, LLC | Senior Secured First Lien Debt | Revolver | 3514 | 3233 |
| Armada Parent, Inc. | Senior Secured First Lien Debt | Delayed Draw | 3851 | 3851 |
| Armada Parent, Inc. | Senior Secured First Lien Debt | Revolver | 6601 | 5501 |
| Artifact Bidco, Inc. | Senior Secured First Lien Debt | Delayed Draw | 2663 | 2663 |
| Artifact Bidco, Inc. | Senior Secured First Lien Debt | Revolver | 1901 | 1901 |
| AuditBoard, Inc. | Senior Secured First Lien Debt | Delayed Draw | 10898 | 10898 |
| AuditBoard, Inc. | Senior Secured First Lien Debt | Revolver | 4360 | 4360 |
| Azurite Intermediate Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 3622 | 3622 |
| Bayou Holdings Buyer, Inc. | Senior Secured First Lien Debt | Delayed Draw | 4107 | 4107 |
| Bayou Holdings Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 3284 | 3284 |
| BCPE Oceandrive Buyer, Inc. | Senior Secured First Lien Debt | Delayed Draw | 3323 | 3323 |
| Big Apple Advisory, LLC | Senior Secured First Lien Debt | Delayed Draw | 22847 | 22847 |
| Big Apple Advisory, LLC | Senior Secured First Lien Debt | Revolver | 6398 | 6398 |
| Bingo Group Buyer, Inc. | Senior Secured First Lien Debt | Delayed Draw | 1694 | 292 |
| Bingo Group Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 652 | 632 |
| Capstone Acquisition Holdings, Inc. | Senior Secured First Lien Debt | Delayed Draw | 208 | 208 |
| Capstone Acquisition Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 1804 | 1804 |
| Carr, Riggs & Ingram Capital, LLC | Senior Secured First Lien Debt | Delayed Draw | 5933 | 4680 |
| Carr, Riggs & Ingram Capital, LLC | Senior Secured First Lien Debt | Revolver | 2715 | 2715 |
| CCI Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 3051 | 3051 |
| Cliffwater, LLC | Senior Secured First Lien Debt | Revolver | 2881 | 2881 |
| Coalesce Merlin Purchases, LLC | Senior Secured First Lien Debt | Delayed Draw | 9773 | 9773 |
| Coalesce Merlin Purchaser, LLC | Senior Secured First Lien Debt | Revolver | 4885 | 4885 |
| Communication Technology Intermediate, LLC | Senior Secured First Lien Debt | Revolver | 3361 | 2173 |
| Coronis Health I, LLC | Senior Secured First Lien Debt | Delayed Draw | 1330 | 798 |
| Einstein Parent, Inc. | Senior Secured First Lien Debt | Revolver | 2310 | 2310 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Company Name** | **Investment Type** | **Commitment Type** | **Total Commitment** | **Remaining Commitment** |
| Electric Power Engineers, LLC | Senior Secured First Lien Debt | Delayed Draw | $13290 | $13290 |
| Electric Power Engineers, LLC | Senior Secured First Lien Debt | Revolver | 5317 | 5317 |
| Electro-Methods, LP | Senior Secured First Lien Debt | Revolver | 8301 | 8301 |
| Faraday Buyer, LLC | Senior Secured First Lien Debt | Delayed Draw | 5599 | 5599 |
| FGT Purchaser, LLC | Senior Secured First Lien Debt | Revolver | 3120 | 3120 |
| FloWorks International, LLC | Senior Secured First Lien Debt | Delayed Draw | 4958 | 4958 |
| Galway Borrower, LLC | Senior Secured First Lien Debt | Delayed Draw | 4509 | 3779 |
| Galway Borrower, LLC | Senior Secured First Lien Debt | Revolver | 3324 | 2622 |
| Groome Purchaser, LLC | Senior Secured First Lien Debt | Delayed Draw | 3509 | 3509 |
| Groome Purchaser, LLC | Senior Secured First Lien Debt | Delayed Draw | 5262 | 5262 |
| Groome Purchaser, LLC | Senior Secured First Lien Debt | Revolver | 2630 | 2630 |
| High Street Buyer, Inc. | Senior Secured First Lien Debt | Delayed Draw | 34717 | 31239 |
| Hospice Care Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 2783 | 1094 |
| ICAT Intermediate Holdings, LLC | Senior Secured First Lien Debt | Delayed Draw | 8685 | 8685 |
| ICAT Intermediate Holdings, LLC | Senior Secured First Lien Debt | Revolver | 1318 | 1318 |
| ICR Operations, LLC | Senior Secured First Lien Debt | Revolver | 6178 | 4479 |
| ICR Operations, LLC | Senior Secured First Lien Debt | Revolver | 1810 | 1810 |
| Ideal Tridon Holdings, Inc. | Senior Secured First Lien Debt | Delayed Draw | 7784 | 7784 |
| Ideal Tridon Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 6485 | 6485 |
| IG Investments Holdings, LLC | Senior Secured First Lien Debt | Revolver | 3463 | 3463 |
| Indigo Buyer, Inc. | Senior Secured First Lien Debt | Delayed Draw | 11424 | 9981 |
| Indigo Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 5166 | 5166 |
| InhabitIQ, Inc. | Senior Secured First Lien Debt | Delayed Draw | 7261 | 7261 |
| InhabitIQ, Inc. | Senior Secured First Lien Debt | Revolver | 4537 | 4537 |
| Integrated Efficiency Solutions, Inc. | Senior Secured First Lien Debt | Revolver | 600 | 600 |
| Integrated Global Services, Inc. | Senior Secured First Lien Debt | Delayed Draw | 5471 | 5471 |
| Integrated Global Services, Inc. | Senior Secured First Lien Debt | Revolver | 6154 | 5470 |
| IQN Holding Corp. | Senior Secured First Lien Debt | Revolver | 1520 | 785 |
| Kahala Ireland Opco DAC | Subordinated Debt | Delayed Draw | 100000 | 100000 |
| Knowledge Pro Buyer, Inc. | Senior Secured First Lien Debt | Delayed Draw | 32239 | 6364 |
| Knowledge Pro Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 5483 | 5483 |
| Last Dance Intermediate II, LLC | Senior Secured First Lien Debt | Delayed Draw | 15349 | 13467 |
| Last Dance Intermediate II, LLC | Senior Secured First Lien Debt | Revolver | 3961 | 1981 |
| Lighthouse Intelligence, Ltd. | Senior Secured First Lien Debt | Delayed Draw | 12009 | 12009 |
| Lighthouse Intelligence, Ltd. | Senior Secured First Lien Debt | Revolver | 8578 | 8578 |
| Mandrake Bidco, Inc. | Senior Secured First Lien Debt | Revolver | 10102 | 10102 |
| Manna Pro Products, LLC | Senior Secured First Lien Debt | Revolver | 2706 | 2706 |
| McDonald Worley, P.C. | Senior Secured First Lien Debt | Term Loan | 5 | 5 |
| Medical Management Resource Group, LLC | Senior Secured First Lien Debt | Revolver | 1929 | 810 |
| Midwest Can Company, LLC | Senior Secured First Lien Debt | Revolver | 2019 | 2019 |
| Mirra-Primeaccess Holdings, LLC | Senior Secured First Lien Debt | Revolver | 11256 | 2814 |
| MWH Intermediate II, LLC | Senior Secured First Lien Debt | Delayed Draw | 9055 | 7896 |
| MWH Intermediate II, LLC | Senior Secured First Lien Debt | Revolver | 1811 | 1811 |
| Odessa Technologies, Inc. | Senior Secured First Lien Debt | Revolver | 5451 | 5451 |
| PetVet Care Centers, LLC | Senior Secured First Lien Debt | Delayed Draw | 4032 | 4032 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Company Name** | **Investment Type** | **Commitment Type** | **Total Commitment** | **Remaining Commitment** |
| PetVet Care Centers, LLC | Senior Secured First Lien Debt | Revolver | $4032 | $4032 |
| PlayPower, Inc. | Senior Secured First Lien Debt | Revolver | 2617 | 2617 |
| Pluralsight, LLC | Senior Secured First Lien Debt | Delayed Draw | 2879 | 2879 |
| Pluralsight, LLC | Senior Secured First Lien Debt | Revolver | 1151 | 1151 |
| Post Road Equipment Finance, LLC | Subordinated Debt | Delayed Draw | 35000 | 1000 |
| Post Road Equipment Finance, LLC | Subordinated Debt | Delayed Draw | 20000 | 20000 |
| Questex, Inc. | Senior Secured First Lien Debt | Revolver | 1938 | 1163 |
| Reagent Chemical and Research, LLC | Senior Secured First Lien Debt | Revolver | 7478 | 7478 |
| Relativity Oda, LLC | Senior Secured First Lien Debt | Revolver | 660 | 660 |
| REP TEC Intermediate Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 2696 | 2696 |
| Rialto Management Group, LLC | Senior Secured First Lien Debt | Revolver | 752 | 752 |
| Saab Purchaser, Inc. | Senior Secured First Lien Debt | Delayed Draw | 17300 | 17300 |
| Saab Purchaser, Inc. | Senior Secured First Lien Debt | Revolver | 2306 | 2306 |
| Saturn SHC Buyer Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 12898 | 12898 |
| Saturn Sound Bidco, Ltd. | Senior Secured First Lien Debt | Delayed Draw | 4510 | 4510 |
| SCIH Salt Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 3746 | 3746 |
| Sherlock Buyer Corp. | Senior Secured First Lien Debt | Revolver | 1865 | 1865 |
| Simplifi Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 5502 | 3714 |
| St. Croix Hospice Acquisition Corp. | Senior Secured First Lien Debt | Revolver | 6743 | 6743 |
| SunMed Group Holdings, LLC | Senior Secured First Lien Debt | Revolver | 860 | 860 |
| TEI Intermediate, LLC | Senior Secured First Lien Debt | Delayed Draw | 7312 | 6873 |
| TEI Intermediate, LLC | Senior Secured First Lien Debt | Revolver | 3107 | 2486 |
| The NPD Group, LP | Senior Secured First Lien Debt | Revolver | 2865 | 2865 |
| Triple Lift, Inc. | Senior Secured First Lien Debt | Revolver | 4693 | 4693 |
| Trystar, LLC | Senior Secured First Lien Debt | Delayed Draw | 12598 | 9664 |
| Trystar, LLC | Senior Secured First Lien Debt | Revolver | 6291 | 6291 |
| US Oral Surgery Management Holdco, LLC | Senior Secured First Lien Debt | Revolver | 1694 | 1694 |
| US Salt Investors, LLC | Senior Secured First Lien Debt | Revolver | 3103 | 3103 |
| Varicent Intermediate Holdings Corp. | Senior Secured First Lien Debt | Delayed Draw | 3391 | 3391 |
| Varicent Intermediate Holdings Corp. | Senior Secured First Lien Debt | Revolver | 2488 | 2488 |
| Victors CCC Buyer, LLC | Senior Secured First Lien Debt | Revolver | 4537 | 4537 |
| West Coast Dental Services, Inc. | Senior Secured First Lien Debt | Revolver | 3663 | 33 |
| Westwood Professional Services, Inc. | Senior Secured First Lien Debt | Delayed Draw | 13134 | 8692 |
| Westwood Professional Services, Inc. | Senior Secured First Lien Debt | Revolver | 6813 | 6813 |
| Wharf Street Ratings Acquisition, LLC | Senior Secured First Lien Debt | Delayed Draw | 2867 | 2867 |
| Wharf Street Ratings Acquisition, LLC | Senior Secured First Lien Debt | Revolver | 2867 | 2867 |
| WHCG Purchaser III, Inc. | Senior Secured First Lien Debt | Delayed Draw | 7556 | 7556 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Company Name** | **Investment Type** | **Commitment Type** | **Total Commitment** | **Remaining Commitment** |
| WIN Holdings III Corp. | Senior Secured First Lien Debt | Revolver | $6356 | $4370 |
| Zendesk, Inc. | Senior Secured First Lien Debt | Delayed Draw | 15979 | 10982 |
| Zendesk, Inc. | Senior Secured First Lien Debt | Revolver | 6590 | 6590 |
|  |  |  | $812417 | $694438 |

---

As of December 31, 2024, the Company's unfunded commitments consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Company Name** | **Investment Type** | **Commitment Type** | **Total Commitment** | **Remaining Commitment** |
| ADCS Clinics Intermediate Holdings, LLC | Senior Secured First Lien Debt | Revolver | $1797 | $1643 |
| Adelaide Borrower, LLC | Senior Secured First Lien Debt | Delayed Draw | 7960 | 7960 |
| Adelaide Borrower, LLC | Senior Secured First Lien Debt | Revolver | 4989 | 4989 |
| Alera Group Intermediate Holdings, Inc. | Senior Secured First Lien Debt | Delayed Draw | 4951 | 265 |
| Arch Global Precision, LLC | Senior Secured First Lien Debt | Revolver | 1008 | 16 |
| Arctic Holdco, LLC | Senior Secured First Lien Debt | Revolver | 4574 | 648 |
| Armada Parent, Inc. | Senior Secured First Lien Debt | Delayed Draw | 6480 | 3277 |
| Armada Parent, Inc. | Senior Secured First Lien Debt | Revolver | 7864 | 7864 |
| Artifact Bidco, Inc. | Senior Secured First Lien Debt | Delayed Draw | 2663 | 2663 |
| Artifact Bidco, Inc. | Senior Secured First Lien Debt | Revolver | 1901 | 1901 |
| AuditBoard, Inc. | Senior Secured First Lien Debt | Delayed Draw | 10898 | 10898 |
| AuditBoard, Inc. | Senior Secured First Lien Debt | Revolver | 4360 | 4360 |
| Avalara, Inc. | Senior Secured First Lien Debt | Revolver | 6020 | 6020 |
| Azurite Intermediate Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 3622 | 3622 |
| Big Apple Advisory, LLC | Senior Secured First Lien Debt | Delayed Draw | 22847 | 22847 |
| Big Apple Advisory, LLC | Senior Secured First Lien Debt | Revolver | 6398 | 6398 |
| Bingo Group Buyer, Inc. | Senior Secured First Lien Debt | Delayed Draw | 1695 | 1695 |
| Bingo Group Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 652 | 632 |
| Capstone Acquisition Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 1804 | 1804 |
| Capstone Logistics | Senior Secured First Lien Debt | Delayed Draw | 208 | 208 |
| Carr, Riggs & Ingram Capital, LLC | Senior Secured First Lien Debt | Delayed Draw | 5939 | 5939 |
| Carr, Riggs & Ingram Capital, LLC | Senior Secured First Lien Debt | Revolver | 2715 | 2376 |
| Communication Technology Intermediate, LLC | Senior Secured First Lien Debt | Revolver | 3361 | 2173 |
| Demakes Borrower, LLC | Senior Secured First Lien Debt | Delayed Draw | 5043 | 5043 |
| Dynagrid Holdings, LLC | Senior Secured First Lien Debt | Revolver | 2262 | 2262 |
| Electric Power Engineers, LLC | Senior Secured First Lien Debt | Delayed Draw | 13290 | 13290 |
| Electric Power Engineers, LLC | Senior Secured First Lien Debt | Revolver | 5317 | 5317 |
| Faraday Buyer, LLC | Senior Secured First Lien Debt | Delayed Draw | 5599 | 5599 |
| FloWorks International, LLC | Senior Secured First Lien Debt | Delayed Draw | 4958 | 4958 |
| Galway Borrower, LLC | Senior Secured First Lien Debt | Delayed Draw | 4512 | 4431 |
| Galway Borrower, LLC | Senior Secured First Lien Debt | Revolver | 3324 | 3046 |
| Ground Penetrating Radar Systems, LLC | Senior Secured First Lien Debt | Delayed Draw | 1970 | 1970 |
| Ground Penetrating Radar Systems, LLC | Senior Secured First Lien Debt | Revolver | 1050 | 919 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Company Name** | **Investment Type** | **Commitment Type** | **Total Commitment** | **Remaining Commitment** |
| HealthEdge Software, Inc. | Senior Secured First Lien Debt | Revolver | $2870 | $2870 |
| Hospice Care Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 2811 | 1162 |
| ICR Operations, LLC | Senior Secured First Lien Debt | Revolver | 6178 | 77 |
| ICR Operations, LLC | Senior Secured First Lien Debt | Revolver | 1810 | 213 |
| Ideal Tridon Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 2868 | 2868 |
| IG Investments Holdings, LLC | Senior Secured First Lien Debt | Revolver | 3463 | 3463 |
| Indigo Buyer, Inc. | Senior Secured First Lien Debt | Delayed Draw | 11429 | 11429 |
| Indigo Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 5166 | 5166 |
| Integrated Efficiency Solutions, Inc. | Senior Secured First Lien Debt | Revolver | 600 | 390 |
| Integrated Global Services, Inc. | Senior Secured First Lien Debt | Revolver | 2028 | 203 |
| Integrated Global Services, Inc. | Senior Secured First Lien Debt | Revolver | 1761 | 1761 |
| IQN Holding Corp. | Senior Secured First Lien Debt | Revolver | 1520 | 925 |
| Knowledge Pro Buyer, Inc. | Senior Secured First Lien Debt | Delayed Draw | 23377 | 6932 |
| Knowledge Pro Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 3678 | 3384 |
| Mandrake Bidco, Inc. | Senior Secured First Lien Debt | Revolver | 10102 | 10102 |
| Manna Pro Products, LLC | Senior Secured First Lien Debt | Revolver | 2706 | 68 |
| McDonald Worley, P.C. | Senior Secured First Lien Debt | Term Loan | 612 | 612 |
| Medical Management Resource Group, LLC | Senior Secured First Lien Debt | Revolver | 1929 | 694 |
| Midwest Can Company, LLC | Senior Secured First Lien Debt | Revolver | 2019 | 2019 |
| Miller Environmental Group, Inc. | Senior Secured First Lien Debt | Delayed Draw | 4886 | 4886 |
| Miller Environmental Group, Inc. | Senior Secured First Lien Debt | Delayed Draw | 9773 | 9773 |
| Miller Environmental Group, Inc. | Senior Secured First Lien Debt | Revolver | 4885 | 4885 |
| Mirra-Primeaccess Holdings, LLC | Senior Secured First Lien Debt | Revolver | 11256 | 2814 |
| MRI Software, LLC | Senior Secured First Lien Debt | Delayed Draw | 6772 | 6125 |
| Norvax, LLC | Senior Secured First Lien Debt | Revolver | 576 | 381 |
| Odessa Technologies, Inc. | Senior Secured First Lien Debt | Revolver | 5451 | 5451 |
| PetVet Care Centers, LLC | Senior Secured First Lien Debt | Delayed Draw | 4032 | 4032 |
| PetVet Care Centers, LLC | Senior Secured First Lien Debt | Revolver | 4032 | 4032 |
| Pie Buyer, Inc. | Senior Secured First Lien Debt | Revolver | 2581 | 516 |
| PlayPower, Inc. | Senior Secured First Lien Debt | Revolver | 2617 | 2617 |
| Pluralsight, LLC | Senior Secured First Lien Debt | Delayed Draw | 2879 | 2879 |
| Pluralsight, LLC | Senior Secured First Lien Debt | Revolver | 1151 | 1151 |
| Point Broadband Acquisition, LLC | Senior Secured First Lien Debt | Delayed Draw | 9667 | 9667 |
| Post Road Equipment Finance, LLC | Subordinated Debt | Delayed Draw | 20000 | 17000 |
| Questex, Inc. | Senior Secured First Lien Debt | Revolver | 1938 | 1938 |
| Reagent Chemical and Research, LLC | Senior Secured First Lien Debt | Revolver | 7478 | 7478 |
| Relativity Oda, LLC | Senior Secured First Lien Debt | Revolver | 660 | 660 |
| REP TEC Intermediate Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 2696 | 2696 |
| Rialto Management Group, LLC | Senior Secured First Lien Debt | Revolver | 752 | 752 |
| RSC Acquisition, Inc. | Senior Secured First Lien Debt | Delayed Draw | 9527 | 9527 |
| RSC Acquisition, Inc. | Senior Secured First Lien Debt | Revolver | 1248 | 1248 |
| Saturn SHC Buyer Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 12898 | 12898 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Company Name** | **Investment Type** | **Commitment Type** | **Total Commitment** | **Remaining Commitment** |
| Saturn Sound Bidco, Ltd. | Senior Secured First Lien Debt | Delayed Draw | $4447 | $4447 |
| SCIH Salt Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 3746 | 2768 |
| Sherlock Buyer Corp. | Senior Secured First Lien Debt | Revolver | 1865 | 1865 |
| Simplifi Holdings, Inc. | Senior Secured First Lien Debt | Revolver | 5502 | 5502 |
| St. Croix Hospice Acquisition Corp. | Senior Secured First Lien Debt | Revolver | 6743 | 6743 |
| SunMed Group Holdings, LLC | Senior Secured First Lien Debt | Revolver | 860 | 860 |
| TEI Intermediate, LLC | Senior Secured First Lien Debt | Delayed Draw | 7312 | 7312 |
| TEI Intermediate, LLC | Senior Secured First Lien Debt | Revolver | 3107 | 2741 |
| The NPD Group, LP | Senior Secured First Lien Debt | Revolver | 2865 | 2292 |
| Trinity Air Consultants Holdings Corp. | Senior Secured First Lien Debt | Delayed Draw | 4877 | 4877 |
| Trinity Air Consultants Holdings Corp. | Senior Secured First Lien Debt | Revolver | 2850 | 2850 |
| Triple Lift, Inc. | Senior Secured First Lien Debt | Revolver | 4693 | 4693 |
| Trystar, LLC | Senior Secured First Lien Debt | Delayed Draw | 12605 | 12605 |
| Trystar, LLC | Senior Secured First Lien Debt | Revolver | 6291 | 6291 |
| US Oral Surgery Management Holdco, LLC | Senior Secured First Lien Debt | Revolver | 1694 | 1694 |
| US Salt Investors, LLC | Senior Secured First Lien Debt | Revolver | 3103 | 3103 |
| Varicent Intermediate Holdings Corp. | Senior Secured First Lien Debt | Delayed Draw | 4464 | 4464 |
| Varicent Intermediate Holdings Corp. | Senior Secured First Lien Debt | Revolver | 2488 | 2488 |
| Victors CCC Buyer, LLC | Senior Secured First Lien Debt | Revolver | 4537 | 4537 |
| West Coast Dental Services, Inc. | Senior Secured First Lien Debt | Revolver | 3661 | 867 |
| Westwood Professional Services, Inc. | Senior Secured First Lien Debt | Delayed Draw | 13617 | 10437 |
| Westwood Professional Services, Inc. | Senior Secured First Lien Debt | Revolver | 6813 | 6813 |
| WHCG Purchaser III, Inc. | Senior Secured First Lien Debt | Delayed Draw | 7556 | 7556 |
| WIN Holdings III Corp. | Senior Secured First Lien Debt | Revolver | 6356 | 4370 |
| Zendesk, Inc. | Senior Secured First Lien Debt | Delayed Draw | 16004 | 16004 |
| Zendesk, Inc. | Senior Secured First Lien Debt | Revolver | 6590 | 6590 |
|  |  |  | $521359 | $449546 |

---

*Litigation and Regulatory Matters*

In the ordinary course of business, the Company may become subject to litigation, claims, and regulatory matters. The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time.

*Indemnifications*

In the ordinary course of business, the Company may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that may result in the execution of these provisions against the Company. Based on its history and experience, management feels that the likelihood of such events are remote.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 8 - Economic Dependency**

Under various agreements, the Company has engaged or will engage the Adviser and its affiliates to provide certain services that are essential to the Company, including asset management services, asset acquisition and disposition decisions, the sale of shares of the Company's common stock available for issuance, as well as other administrative responsibilities for the Company including accounting services and investor relations.

As a result of these relationships, the Company is dependent upon the Adviser and its affiliates. In the event that these companies were unable to provide the Company with the respective services, the Company would be required to find alternative providers of these services.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 9 - Capital**

*Investor Commitments*

The following table summarizes the total capital commitments and unfunded capital commitments of Common Stock and Series A Preferred Stock as of September 30, 2025 and as of December 31, 2024, excluding the impact of net assets acquired as a result of the Mergers:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Capital Commitments** | **Unfunded Capital Commitments** | **Capital Commitments** | **Unfunded Capital Commitments** |
| Common Stock | $375461 | $— | $375461 | $— |
| Series A Preferred Stock | 77500 |  | 77500 |  |
| **Total** | $452961 | $— | $452961 | $— |

---

*Capital Drawdowns*

For the nine months ended September 30, 2025, there were no capital drawdowns of Common Stock.

The following table summarizes the total shares issued and proceeds related to capital drawdowns of Common Stock for the year ended December 31, 2024:

---

| | | |
|:---|:---|:---|
| **Share Issue Date** | **Shares Issued** | **Net Proceeds Received** |
| **For the year ended December 31, 2024** | | |
| April 24, 2024 | 61058 | $900 |
| **Total Capital Drawdowns** | **61058** | $**900** |

---

Refer to *[Note 19 - Merger with FBLC](#ica7834b2a94a41c89a6a99cf91879fe8_97)* for shares of Common Stock issued in connection with the Mergers.

The issuances of Common Stock described above were exempt from the registration requirements of the Securities Act, pursuant to Section 4(a)(2) thereof and Regulation D thereunder. The Company relied, in part, upon representations from investors in the relevant Subscription Agreements that each investor is an "accredited investor," as defined in Regulation D under the Securities Act.

For the nine months ended September 30, 2025, there were no capital drawdowns of Series A Preferred Stock.

For the year ended December 31, 2024, there were no capital drawdowns of Series A Preferred Stock.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 10 - Common Stock**

The following table reflects the net assets attributable to Common Stock activity for the nine months ended September 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Common stock - shares** | **Common stock - par** | **Additional paid in capital** | **Total distributable earnings (loss)** | **Total net assets attributable to common stock** |
| Balance as of December 31, 2024 | 135487595 | $135 | $2517890 | $(607648) | $1910377 |
| Net investment income (loss) |  |  |  | 44924 | 44924 |
| Net realized gain (loss) |  |  |  | 3452 | 3452 |
| Net change in unrealized appreciation (depreciation) on investments |  |  |  | (23517) | (23517) |
| Accretion to redemption value of Series A redeemable convertible preferred stock |  |  |  | (5) | (5) |
| Accrual of Series A redeemable convertible preferred stock distributions |  |  |  | (1686) | (1686) |
| Distributions to common stockholders |  |  |  | (44703) | (44703) |
| Reinvested dividends | 708547 | 1 | 9990 |  | 9991 |
| Balance as of March 31, 2025 | 136196142 | $136 | $2527880 | $(629183) | $1898833 |
| Net investment income (loss) |  | $— | $— | $39580 | $39580 |
| Net realized gain (loss) |  |  |  | (11492) | (11492) |
| Net change in unrealized appreciation (depreciation) on investments |  |  |  | (1930) | (1930) |
| Accretion to redemption value of Series A redeemable convertible preferred stock |  |  |  | (4) | (4) |
| Accrual of Series A redeemable convertible preferred stock distributions |  |  |  | (1687) | (1687) |
| Distributions to common stockholders |  |  |  | (44942) | (44942) |
| Repurchases | (2475426) | (2) | (34901) |  | (34903) |
| Reinvested dividends | 666581 | 1 | 9291 |  | 9292 |
| Balance as of June 30, 2025 | 134387297 | $135 | $2502270 | $(649658) | $1852747 |
| Net investment income (loss) |  | $— | $— | $40078 | $40078 |
| Net realized gain (loss) |  |  |  | 987 | 987 |
| Net change in unrealized appreciation (depreciation) on investments |  |  |  | (16783) | (16783) |
| Accretion to redemption value of Series A redeemable convertible preferred stock |  |  |  | (5) | (5) |
| Accrual of Series A redeemable convertible preferred stock distributions |  |  |  | (1482) | (1482) |
| Distributions to common stockholders |  |  |  | (38958) | (38958) |
| Repurchases | (87757) | 0 <sup>(1)</sup> | (1237) |  | (1237) |
| Reinvested dividends | 594615 | 1 | 8199 |  | 8200 |
| Balance as of September 30, 2025 | 134894155 | $136 | $2509232 | $(665821) | $1843547 |

---

<sup>(1)</sup> Less than $1.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

The following table reflects the net assets attributable to Common Stock activity for the nine months ended September 30, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Common stock - shares** | **Common stock - par** | **Additional paid in capital** | **Total distributable earnings (loss)** | **Total net assets attributable to common stock** |
| Balance as of December 31, 2023 | 26080389 | $26 | $400332 | $(12239) | $388119 |
| Net investment income (loss) |  |  |  | 49737 | 49737 |
| Net realized gain (loss) |  |  |  | 1283 | 1283 |
| Net change in unrealized appreciation (depreciation) on investments |  |  |  | (24800) | (24800) |
| Accretion to redemption value of Series A redeemable convertible preferred stock |  |  |  | (5) | (5) |
| Accrual of Series A redeemable convertible preferred stock distributions |  |  |  | (2197) | (2197) |
| Distributions to common stockholders |  |  |  | (11182) | (11182) |
| Issuance of shares in connection with the Merger | 110033324 | 110 | 1594151 |  | 1594261 |
| Reinvested dividends | 221360 | 0 <sup>(1)</sup> | 3342 |  | 3342 |
| Balance as of March 31, 2024 | 136335073 | $136 | $1997825 | $597 | $1998558 |
| Net investment income (loss) |  | $— | $— | $48677 | $48677 |
| Net realized gain (loss) |  |  |  | 250 | 250 |
| Net change in unrealized appreciation (depreciation) on investments |  |  |  | (16015) | (16015) |
| Accretion to redemption value of Series A redeemable convertible preferred stock |  |  |  | (4) | (4) |
| Accrual of Series A redeemable convertible preferred stock distributions |  |  |  | (1687) | (1687) |
| Distributions to common stockholders |  |  |  | (45004) | (45004) |
| Issuance of common stock, net of issuance costs | 61058 | 0 <sup>(1)</sup> | 900 |  | 900 |
| Repurchases | (2837405) | (3) | (41167) |  | (41170) |
| Reinvested dividends | 685533 | 1 | 9932 |  | 9933 |
| Balance as of June 30, 2024 | 134244259 | $134 | $1967490 | $(13186) | $1954438 |
| Net investment income (loss) |  | $— | $— | $44405 | $44405 |
| Net realized gain (loss) |  |  |  | (22667) | (22667) |
| Net change in unrealized appreciation (depreciation) on investments |  |  |  | 8810 | 8810 |
| Accretion to redemption value of Series A redeemable convertible preferred stock |  |  |  | (5) | (5) |
| Accrual of Series A redeemable convertible preferred stock distributions |  |  |  | (1686) | (1686) |
| Distributions to common stockholders |  |  |  | (44313) | (44313) |
| Repurchases | (128843) | 0 <sup>(1)</sup> | (1847) |  | (1847) |
| Reinvested dividends | 677663 | 1 | 9802 |  | 9803 |
| Balance as of September 30, 2024 | 134793079 | $135 | $1975445 | $(28642) | $1946938 |

---

<sup>(1)</sup> Less than $1.

The Company has adopted a distribution reinvestment plan (the "DRIP") pursuant to which all cash dividends or distributions ("Distributions") declared by the Board of Directors are reinvested on behalf of investors who do not elect to receive their Distributions in cash (the "Participants"). As a result, if the Board of Directors declares a Distribution, then stockholders who have not elected to "opt out" of the DRIP will have their Distributions automatically reinvested in additional shares of the Company's Common Stock at a price equal to net asset value per share as estimated in good faith by the Company on the payment date. The timing and amount of Distributions to stockholders are subject to applicable legal restrictions and the sole discretion of the Board of Directors.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

The following table reflects the Common Stock activity for the nine months ended September 30, 2025:

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value** |
| Shares issued through DRIP | 1969743 | $27483 |
| Share repurchases | (2563183) | (36140) |
|  | **(593440)** | $**(8657)** |

---

The following table reflects the Common Stock activity for the year ended December 31, 2024:

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value** |
| Shares sold | 110096838 | $1595161 |
| Shares issued through DRIP | 2279074 | 33106 |
| Share repurchases | (2968706) | (43017) |
|  | **109407206** | $**1585250** |

---

**Note 11 - Preferred Stock**

On August 25, 2021, the Company filed with the Secretary of State of the State of Delaware the Certificate of Designation for the Series A Preferred Stock, which designates a total of 50.0 million shares of preferred stock as Series A Preferred Stock, par value $0.001 per share. On the same day, the Company entered into subscription agreements (collectively, the "Preferred Subscription Agreements") with certain investors, pursuant to which the investors made new capital commitments (the "Preferred Capital Commitments") to purchase shares of the Company's Series A Preferred Stock. As of September 30, 2025 and December 31, 2024, the Company has received total Preferred Capital Commitments of $77.5 million. Pursuant to their respective Preferred Subscription Agreements, each investor is required to fund drawdowns to purchase shares of the Series A Preferred Stock up to the amount of their respective capital commitments on an as-needed basis, upon a minimum of 10 business days prior notice at a per-share price equal to the liquidation preference (the "Liquidation Preference"). The sale and issuance of shares of Series A Preferred Stock is exempt from the registration requirements of the Securities Act, pursuant to Section 4(a)(2) thereof and Regulation D thereunder. The Company shall rely, in part, upon representations from the Investors in the relevant Preferred Subscription Agreements that each Investor is an "accredited investor," as defined in Regulation D under the Securities Act.

As of September 30, 2025, there were 50.0 million shares of preferred stock authorized, par value $0.001 per share, of which 77,500 shares of Series A Preferred Stock were issued and outstanding. As of December 31, 2024, there were 50.0 million shares of preferred stock authorized, par value $0.001 per share, of which 77,500 shares of Series A Preferred Stock were issued and outstanding. No shares outstanding of Series A Preferred Stock are redeemable before December 31, 2026.

Each holder of Series A Preferred Stock is entitled to a Liquidation Preference of $1,000.00 per share plus all dividends accrued and unpaid thereon. With respect to distributions, including the payment of dividends and distribution of the Company's assets upon liquidation, dissolution, or winding-up, whether voluntary or involuntary, the Series A Preferred Stock will be senior to shares of Common Stock, will rank on parity with any other class or series of preferred stock that the Company is authorized to issue pursuant to its certificate of incorporation, whether such class or series is now existing or is created in the future, to the extent of the aggregate Liquidation Preference, which amount includes all accrued but unpaid dividends and will be subordinate to the rights of holders of our senior indebtedness.

Dividends are payable on each outstanding share of Series A Preferred Stock quarterly in arrears at a rate equal to (1) for each fiscal quarter ending on or before September 30, 2022 (the "Initial Dividend Period"), the dividends that would have been paid in respect of each share of Series A Preferred Stock if it had been converted into a share of the Company's Common Stock, on the first day of such quarter (or the date of issuance in the case of shares of Series A Preferred Stock issued after the first day of such quarter) at the applicable Conversion Rate (as defined below) and (2) for each quarter after the Initial Dividend Period, the greater of (i) an amount equal to $10.00 per share, subject to proration if such share is not outstanding for the full quarter, and (ii) the dividends that would have been paid in respect of such share of Series A Preferred Stock if it had been converted into a share of Common Stock on the first day of such quarter (or the date of issuance in the case of shares of Series A Preferred Stock issued after the first day of such quarter) at the applicable Conversion Rate.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

The Series A Preferred Stock is convertible (a) by the Company, in its sole discretion, at any time commencing on the closing date of a liquidity event, as defined by the Confidential Private Placement Memorandum of Franklin BSP Capital Corporation, dated September 2020, or (b) by the holders thereof at any time commencing six months following the closing date of a liquidity event, in each case, into the number of shares of Common Stock equal to (1) the Liquidation Preference divided by (2) the price paid by investors for shares of Common Stock at the time of the purchase of such share of Series A Preferred Stock or if the purchase of such share of Series A Preferred Stock did not occur concurrent with a sale of Common Stock by the Company at the net asset value per share of Common Stock determined within 48 hours (excluding Sundays and holidays) of the purchase of such share of Series A Preferred Stock (the "Conversion Rate"). The Company has the right to redeem the Series A Preferred Stock at any time, and from time to time, on or after August 23, 2029 upon 90 days prior notice to holders of Series A Preferred Stock. As of September 30, 2025, a liquidity event had not commenced.

The holders of the Preferred Stock are generally entitled to vote with the holders of the shares of Common Stock on all matters submitted for a vote to the common stockholders (voting together with the holders of shares of Common Stock as one class) on an as-converted basis, subject to certain limitations.

The following table presents the activity in the Company's Series A Preferred Stock for the nine months ended September 30, 2025:

---

| | | |
|:---|:---|:---|
| **Series A Preferred Stock** | **Shares** | **Amount** |
| **Beginning Balance, December 31, 2024** | 77500 | $77416 |
| Amortization of offering costs |  | 14 |
| **Ending Balance, September 30, 2025** | 77500 | $77430 |

---

The following table presents the activity in the Company's Series A Preferred Stock for the nine months ended September 30, 2024:

---

| | | |
|:---|:---|:---|
| **Series A Preferred Stock** | **Shares** | **Amount** |
| **Beginning Balance, December 31, 2023** | 77500 | $77398 |
| Amortization of offering costs |  | 14 |
| **Ending Balance, September 30, 2024** | 77500 | $77412 |

---

**Note 12 - Share Repurchase Program**

The Company intends to conduct annual tender offers pursuant to its share repurchase program ("SRP"). The Company's Board of Directors considers the following factors in making its determination regarding whether to cause the Company to offer to repurchase shares and under what terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of such repurchases on the Company's qualification as a RIC (including the consequences of any necessary asset sales);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the liquidity of the Company's assets (including fees and costs associated with disposing of assets);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's investment plans and working capital requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the relative economies of scale with respect to the Company's size;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's history in repurchasing shares or portions thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the condition of the securities markets.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

The Company intends to continue to limit the number of shares to be repurchased in any calendar year to the lesser of (i) 10% of the weighted average number of shares outstanding in the prior calendar year or (ii) the number of shares of common stock the Company is able to repurchase with the proceeds received from the sale of shares of common stock under the DRIP during the relevant redemption period. In addition, in the event of a stockholder's death or disability, the Company may, in its sole discretion, accept up to the full amount tendered by such stockholder of the current net asset value per share. Any repurchases of shares made in connection with a stockholder's death or disability may be included within the overall limitation imposed on tender offers during the relevant redemption period, which provides that the Company may limit the number of shares to be repurchased during any redemption period to the number of shares of common stock the Company is able to repurchase with the proceeds received from the sale of shares of common stock under the DRIP during such redemption period. The Company's most recent tender offer was oversubscribed.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Offer Date** | **Repurchase Date** | **Shares Tendered** | **Shares Repurchased** | **Repurchase Price Per Share** | **Aggregate Consideration for Repurchased Shares (in thousands)** |
| February 29, 2024 | May 7, 2024 | 22351035 | 2676696 | $14.49 | $38785.30 |
| March 3, 2025 | May 9, 2025 | 23444496 | 2475427 | $14.10 | $34903.49 |

---

**Note 13 - Earnings Per Share**

Basic and diluted earnings per share ("EPS") are computed using the two-class method, which considers participating securities as a separate class of shares. The two-class method is an earnings allocation formula that determines EPS for common stock according to dividends distributed and participation rights in undistributed earnings. The Company's participating securities consist of its Series A Preferred Stock. Basic earnings per share is computed by dividing earnings available to common stockholders, adjusted to exclude earnings allocated to participating securities, by the weighted average number of shares outstanding during the period. Other potentially dilutive shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The following information sets forth the computation of the weighted average basic and diluted net increase in net assets per share resulting from operations for the three and nine months ended September 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
|<br>**Numerator** | **2025** | **2024** | **2025** | **2024** |
| Net increase (decrease) in net assets resulting from operations | $24282 | $30548 | $75299 | $89680 |
| Less: cumulative preferred stock dividends | (1482) | (1686) | (4650) | (5059) |
| Less: changes in carrying value of redeemable securities | (5) | (5) | (14) | (14) |
| Numerator for EPS - income available to common stockholders | $22795 | $28857 | $70635 | $84607 |
| **Denominator** |  |  |  |  |
| Weighted average common shares outstanding basic and diluted | 134499911 | 134566059 | 135068128 | 125686310 |
| Basic and diluted earnings per share | $0.17 | $0.21 | $0.52 | $0.67 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 14 - Distributions**

The following table reflects the distributions declared on shares of the Company's Common Stock during the nine months ended September 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Amount Per Share** |
| **For the Nine Months Ended September 30, 2025** | **For the Nine Months Ended September 30, 2025** | | |
| March 10, 2025 | March 10, 2025 | March 18, 2025 | $0.29 |
| March 10, 2025 (special) | March 10, 2025 | March 18, 2025 | $0.04 |
| May 6, 2025 | May 6, 2025 | May 15, 2025 | $0.29 |
| May 6, 2025 (special) | May 6, 2025 | May 15, 2025 | $0.04 |
| August 7, 2025 | August 7, 2025 | September 2, 2025 | $0.29 |

---

The following table reflects the distributions declared on shares of the Company's Common Stock during the nine months ended September 30, 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Amount Per Share** |
| **For the Nine Months Ended September 30, 2024** | **For the Nine Months Ended September 30, 2024** | | |
| January 9, 2024 | January 10, 2024 | January 11, 2024 | $0.43 |
| May 7, 2024 | May 7, 2024 | May 13, 2024 | $0.29 |
| May 7, 2024 (special) | May 7, 2024 | May 13, 2024 | $0.04 |
| August 5, 2024 | August 5, 2024 | August 15, 2024 | $0.29 |
| August 5, 2024 (special) | August 5, 2024 | August 15, 2024 | $0.04 |

---

The following table reflects the distributions declared on shares of the Company's Series A Preferred Stock during the nine months ended September 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Amount Per Share** |
| **For the Nine Months Ended September 30, 2025** | **For the Nine Months Ended September 30, 2025** | | |
| March 10, 2025 | March 10, 2025 | March 18, 2025 | $21.76 |
| May 6, 2025 | May 6, 2025 | May 15, 2025 | $21.76 |
| August 7, 2025 | August 7, 2025 | September 2, 2025 | $19.12 |

---

The following table reflects the distributions declared on shares of the Company's Series A Preferred Stock during the nine months ended September 30, 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Amount Per Share** |
| **For the Nine Months Ended September 30, 2024** | **For the Nine Months Ended September 30, 2024** | | |
| January 9, 2024 | January 10, 2024 | January 11, 2024 | $28.35 |
| May 7, 2024 | May 7, 2024 | May 13, 2024 | $21.76 |
| August 5, 2024 | August 5, 2024 | August 15, 2024 | $21.76 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 15 - Income Tax Information and Distributions to Stockholders**

The Company has elected to be treated for federal income tax purposes as a RIC under the Code. Generally, a RIC is exempt from federal income taxes if it meets certain quarterly asset diversification requirements, annual income tests, and distributes to stockholders its ''investment company taxable income,'' as defined in the Code, each taxable year. Distributions declared prior to the filing of the previous year's tax return and paid up to one year after the previous tax year can be carried back to the prior tax year for determining the distributions paid in such tax year. The Company intends to make sufficient distributions to maintain its RIC status each year. The Company may also be subject to federal excise taxes of 4%.

A RIC is limited in its ability to deduct expenses in excess of its "investment company taxable income" (which is, generally, ordinary income plus net realized short-term capital gains in excess of net realized long-term capital losses). If the Company's expenses in a given taxable year exceed gross taxable income (e.g., as the result of large amounts of equity-based compensation), it would incur a net operating loss for that year. However, a RIC is not permitted to carry forward net operating losses to subsequent taxable years and such net operating losses do not pass through to the RIC's stockholders. In addition, deductible expenses can be used only to offset investment company taxable income, not net capital gain. A RIC may not use any net capital losses (that is, realized capital losses in excess of realized capital gains) to offset the RIC's investment company taxable income, but may carry forward such net capital losses, and use them to offset capital gains indefinitely. Due to these limits on the deductibility of expenses and net capital losses, the Company may for tax purposes have aggregate taxable income for several taxable years that it is required to distribute and that is taxable to stockholders even if such taxable income is greater than the aggregate net income the Company actually earned during those taxable years. Such required distributions may be made from the Company's cash assets or by liquidation of investments, if necessary. The Company may realize gains or losses from such liquidations. In the event the Company realizes net capital gains from such transactions, the Company may make a larger capital gain distribution than it would have made in the absence of such transactions.

Depending on the level of taxable income earned in a tax year, for excise tax purposes the Company may choose to carry forward taxable income in excess of current year distributions into the next tax year and incur a 4% U.S. federal excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned.

The Company did not have any uncertain tax positions that met the recognition or measurement criteria of *ASC 740-10-25, Income Taxes* ("ASC Topic 740"), nor did the Company have any unrecognized tax benefits as of the periods presented herein. The Company's current tax year, 2024, 2023, and 2022 federal and state tax returns remain subject to examination by the Internal Revenue Service and state departments of revenue.

As of September 30, 2025, the Company's domestic subsidiaries are expected to have net operating losses and unrealized gains. As a result, the Company has deferred tax assets of $64.2 million and deferred tax liabilities of $(81.2) million. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. As of September 30, 2025, deferred tax assets have been offset by valuation allowances of $3.6 million. The net deferred tax liability is included within accounts payable and accrued expenses in the Consolidated Statements of Assets and Liabilities.

As of December 31, 2024, the Company's domestic subsidiaries are expected to have net operating losses and unrealized gains. As a result, the Company has deferred tax assets of $37.2 million and deferred tax liabilities of $(52.6) million. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. As of December 31, 2024, deferred tax assets have been offset by valuation allowances of $0.4 million. The net deferred tax liability is included within accounts payable and accrued expenses in the Consolidated Statements of Assets and Liabilities.

The deferred tax asset valuation allowance, if applicable, has been determined pursuant to the provisions of *ASC Topic 740*, including the Company's estimation of future taxable income, if necessary, and is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 16 - Financial Highlights**

The following is a schedule of financial highlights for the nine months ended September 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** |
| **Per share data:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net asset value attributable to common stock, beginning of period | $14.10 | $14.88 |
| Results of operations <sup>(1)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) | 0.92 | 1.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) on investments, net of change in deferred taxes | (0.36) | (0.43) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) on derivatives | (0.00) <sup>(9)</sup> |  |
| Net increase (decrease) in net assets resulting from operations attributable to common stockholders and participating securities | 0.56 | 0.71 |
| Accretion to redemption value of Series A redeemable convertible preferred stock <sup>(1) (9)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.00) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.00) |
| Accrual of Series A redeemable convertible preferred stock distributions <sup>(1)</sup> | (0.04) | (0.04) |
| Net increase (decrease) in net assets resulting from operations attributable to common stockholders | 0.52 | 0.67 |
| Stockholder distributions <sup>(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stockholder distributions from net investment income | (0.95) | (1.09) |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stockholder distributions from capital gains |  | (0.00) <sup>(9)</sup> |
| Net decrease in net assets resulting from stockholder distributions | (0.95) | (1.09) |
| Other <sup>(3)</sup> |  | (0.02) |
| Net asset value attributable to common stock, end of period | $13.67 | $14.44 |
| Common shares outstanding at end of period | 134894155 | 134793079 |
| Total return <sup>(4)</sup> | 3.68% | 4.41% |
| **Ratio/Supplemental data attributable to common stock:** |  |  |
| Total net assets attributable to common stock, end of period | $1843547 | $1946938 |
| Ratio of net investment income to average net assets attributable to common stock <sup>(5)</sup> | 9.33% | 10.98% |
| Ratio of total expenses to average net assets attributable to common stock <sup>(5)(6)</sup> | 13.11% | 11.60% |
| Ratio of total net expenses to average net assets attributable to common stock <sup>(5)(7)</sup> | 13.11% | 11.60% |
| Portfolio turnover rate <sup>(8)</sup> | 17.54% | 16.04% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;The per share data was derived by using the weighted average common shares outstanding during the period.

(2) &nbsp;&nbsp;&nbsp;&nbsp;The per share data for distributions reflects the actual amount of distributions declared per share during the period.

(3) &nbsp;&nbsp;&nbsp;&nbsp;Represents the impact of calculating certain per share amounts based on weighted average common shares outstanding during the period and certain per share amounts based on common shares outstanding as of period end.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

(4) &nbsp;&nbsp;&nbsp;&nbsp;Total return is calculated assuming a purchase of shares of Common Stock at the current net asset value attributable to Common Stock on the first day and a sale at the current net asset value attributable to Common Stock on the last day of the periods reported. Common Stock distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the DRIP. Total return is not annualized.

(5)&nbsp;&nbsp;&nbsp;&nbsp;Ratios are annualized, except for incentive fees and waivers.

(6) &nbsp;&nbsp;&nbsp;&nbsp;Ratio of total expenses to average net assets attributable to common stock is calculated using total operating expenses, including income tax expense, over average net assets attributable to common stock.

(7) &nbsp;&nbsp;&nbsp;&nbsp;Ratio of net expenses to average net assets attributable to common stock is calculated using total operating expenses, including income tax expense, less applicable waivers over average net assets attributable to common stock.

(8) &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated using the lesser of year-to-date purchases or sales over the average of the invested assets at fair value.

(9)&nbsp;&nbsp;&nbsp;&nbsp;Less than $0.01.

**Note 17 - Schedules of Investments and Advances to Affiliates**

The following table presents the Schedule of Investments and Advances to Affiliates for the nine months ended September 30, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company** <sup>(1)</sup> | **Type of Asset** | **Amount of dividends and interest included in income** | **Beginning Fair Value at December 31, 2024** | **Gross additions\*** | **Gross reductions\*\*** | **Realized Gain/(Loss)** | **Change in Unrealized Gain (Loss)** <sup>(6)</sup> | **Fair Value at September 30, 2025** |
| **Control Investments** | | | | | | | | |
| Danish CRJ, Ltd. <sup>(2) (5)</sup> | Equity/Other Investments | $— | $— | $— | $— | $— | $— | $— |
| FBLC Senior Loan Fund, LLC <sup>(3) (5)(7)</sup> | Joint Venture | 21981 | 404934 |  | (100000) | (164) | 164 | 304934 |
| Kahala Aviation, LLC <sup>(5)</sup> | Subordinated Debt | 2269 |  | 30483 |  |  | 3 | 30486 |
| Kahala Aviation, LLC <sup>(4) (5)</sup> | Subordinated Debt |  |  |  |  |  |  |  |
| Kahala Aviation, LLC <sup>(2) (5)</sup> | Equity/Other Investments |  | 2308 | 7545 |  |  | 477 | 10330 |
| Kahala US OpCo, LLC <sup>(2) (5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| MGTF Holdco, LLC <sup>(2) (5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| MGTF Radio Company, LLC <sup>(5)</sup> | Senior Secured First Lien Debt | 1116 | 31672 | 104 |  |  | (19776) | 12000 |
| Post Road Equipment Finance, LLC <sup>(5) (7)</sup> | Equity/Other Investments | 8354 | 119233 | 8926 |  |  | 93 | 128252 |
| Post Road Equipment Finance, LLC <sup>(5) (7)</sup> | Subordinated Debt | 5729 | 62599 | 5 |  |  | (4) | 62600 |
| Post Road Equipment Finance, LLC <sup>(5) (7)</sup> | Subordinated Debt | 2846 | 35000 | 23000 | (24000) |  |  | 34000 |
| Post Road Equipment Finance, LLC <sup>(5) (7)</sup> | Subordinated Debt | 190 | 3000 | 10000 | (13050) |  | 50 |  |
| Siena Capital Finance, LLC <sup>(5)</sup> | Equity/Other Investments | 10965 | 77310 |  |  |  | 418 | 77728 |
| Siena Capital Finance, LLC <sup>(5)</sup> | Subordinated Debt | 4859 | 49500 | 5000 |  |  |  | 54500 |
| WPNT, LLC <sup>(2) (5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;**Total Control Investments** |  | $58309 | $785556 | $85063 | $(137050) | $(164) | $(18575) | $714830 |
| &nbsp;&nbsp;**Affiliate Investments** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Coronis Health I, LLC <sup>(5)</sup> | Senior Secured First Lien Debt | $23 | $— | $532 | $— | $— | $— | $532 |
| &nbsp;&nbsp;Coronis Health I, LLC <sup>(5)</sup> | Senior Secured First Lien Debt | 194 |  | 4104 |  |  |  | 4104 |
| &nbsp;&nbsp;Coronis Health I, LLC <sup>(5)</sup> | Senior Secured Second Lien Debt | 57 |  | 2716 |  |  |  | 2716 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company** <sup>(1)</sup> | **Type of Asset** | **Amount of dividends and interest included in income** | **Beginning Fair Value at December 31, 2024** | **Gross additions\*** | **Gross reductions\*\*** | **Realized Gain/(Loss)** | **Change in Unrealized Gain (Loss)** <sup>(6)</sup> | **Fair Value at September 30, 2025** |
| &nbsp;&nbsp;Coronis Health I, LLC <sup>(5)</sup> | Equity/Other Investments | $— | $— | $4900 | $— | $— | $— | $4900 |
| &nbsp;&nbsp;CRS-SPV, Inc. <sup>(2)</sup> <sup>(5)</sup> | Equity/Other Investments |  | 1704 |  |  |  | 304 | 2008 |
| &nbsp;&nbsp;First Eagle Greenway Fund II, LLC <sup>(2)</sup> | Equity/Other Investments |  | 255 |  |  |  | 2 | 257 |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(5)</sup> | Senior Secured First Lien Debt | 78 | 1393 |  | (12) |  | (135) | 1246 |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(5)</sup> | Senior Secured First Lien Debt | 9 | 210 | 150 | (360) |  | (59) | (59) |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(5)</sup> | Senior Secured Second Lien Debt | 1 | 446 |  |  |  | (446) |  |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(2)</sup> <sup>(5)</sup>  | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(2)</sup> <sup>(5)</sup>  | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(5)</sup> | Senior Secured First Lien Debt | 13 |  | 240 |  |  |  | 240 |
| &nbsp;&nbsp;NewStar Arlington Senior Loan Program, LLC 14-1A FR <sup>(5)</sup> | Collateralized Securities | 596 | 4237 | 34 |  |  | 138 | 4409 |
| &nbsp;&nbsp;NewStar Arlington Senior Loan Program, LLC 14-1A SUB <sup>(5)</sup> | Collateralized Securities | (88) | 2170 |  |  |  | (1362) | 808 |
| &nbsp;&nbsp;Newstar Fairfield Fund CLO, Ltd. 2015-1RA F <sup>(4) (5)</sup> | Collateralized Securities | 20 | 2457 | 3 | (2457) | 137 | (140) |  |
| &nbsp;&nbsp;Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB <sup>(5)</sup> | Collateralized Securities |  | 1208 |  |  |  | (696) | 512 |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(5)</sup> | Senior Secured First Lien Debt | 846 | 10112 |  | (2) |  | 1 | 10111 |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(2)</sup> <sup>(5)</sup>  | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(5)</sup> | Senior Secured Second Lien Debt | 576 | 4999 | 579 |  |  | (1467) | 4111 |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(2)</sup> <sup>(5)</sup>  | Subordinated Debt |  |  |  |  |  |  |  |
| &nbsp;&nbsp;PennantPark Credit Opportunities Fund II, LP <sup>(2)</sup> | Equity/Other Investments |  | 603 |  |  |  | (104) | 499 |
| &nbsp;&nbsp;Tennenbaum Waterman Fund, LP | Equity/Other Investments |  | 5802 | 1 | (5020) |  | (235) | 548 |
| **Total Affiliate Investments** |  | $2325 | $35596 | $13259 | $(7851) | $137 | $(4199) | $36942 |
| **Total Control & Affiliate Investments** |  | $60634 | $821152 | $98322 | $(144901) | $(27) | $(22774) | $751772 |

---

—–—–—–—–—–

\*&nbsp;&nbsp;&nbsp;&nbsp;Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities, and the movement of an existing portfolio company into this category from a different category.

\*\*&nbsp;&nbsp;&nbsp;&nbsp;Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities, and the movement of an existing portfolio company out of this category into a different category.

(1)The principal amount and ownership detail are shown in the Consolidated Schedules of Investments.

(2)Investment is non-income producing at September 30, 2025.

(3)The Company and CCLF are the members of SLF, a joint venture formed as a Delaware limited liability company that is not consolidated by either member for financial reporting purposes. The members make investments in SLF in the form of LLC equity interests as SLF makes investments, and all portfolio and other material decisions regarding SLF must be submitted to SLF's board of directors which is comprised of an equal number of members appointed by each the Company and CCLF. Because management of SLF is shared equally between us and CCLF, we do not believe we control SLF for purposes of assessing consolidation under U.S. GAAP or otherwise.

(4)Investment no longer held as of September 30, 2025.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

(5)The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's Board of Directors as required by the 1940 Act. Such investments are valued using significant unobservable inputs (See Note 3 to the consolidated financial statements).

(6)Gross of net change in deferred taxes in the amount of $(4.9) million.

(7)The Company's investment falls under the definition of a significant subsidiary, as it exceeded the threshold of at least one of the tests under Rule 4-08(g), or exceeded the threshold of at least one of the tests under Rule 3-09. See *Note 3* for summarized financial information.

Dividends and interest for the nine months ended September 30, 2025 attributable to Controlled and Affiliated investments no longer held as of September 30, 2025 were $20.4 thousand.

Realized gain (loss) for the nine months ended September 30, 2025 attributable to Controlled and Affiliated investments no longer held as of September 30, 2025 was $136.6 thousand.

Change in unrealized gain (loss) for the nine months ended September 30, 2025 attributable to Controlled and Affiliated investments no longer held as of September 30, 2025 was $(140.1) thousand.

The following table presents the Schedule of Investments and Advances to Affiliates for the year ended December 31, 2024:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company** <sup>(1)</sup> | **Type of Asset** | **Amount of dividends and interest included in income** | **Beginning Fair Value at December 31, 2023** | **Gross additions\*** | **Gross reductions\*\*** | **Realized Gain/(Loss)** | **Change in Unrealized Gain (Loss)** <sup>(7)</sup> | **Fair Value at December 31, 2024** |
| **Control Investments** | | | | | | | | |
| CRS-SPV, Inc. <sup>(4) (5)</sup> | Senior Secured First Lien Debt | $— | $— | $45 | $(45) | $— | $— | $— |
| Danish CRJ, Ltd. <sup>(5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| FBLC Senior Loan Fund, LLC <sup>(3) (5) (7)</sup> | Joint Venture | 31969 |  | 404934 | 501 |  | (501) | 404934 |
| Kahala US OpCo, LLC <sup>(5)</sup> | Equity/Other Investments |  |  | 2739 | 75 |  | (506) | 2308 |
| Kahala Ireland OpCo Designated Activity Company <sup>(4) (5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| Kahala Ireland OpCo Designated Activity Company <sup>(4) (5)</sup> | Equity/Other Investments |  |  | 538 | (538) |  |  |  |
| Kahala US OpCo, LLC <sup>(5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| Lakeview Health Holdings, Inc. <sup>(4) (5)</sup> | Senior Secured First Lien Debt | 19 |  | 714 | (714) |  |  |  |
| Lakeview Health Holdings, Inc. <sup>(4) (5)</sup> | Senior Secured First Lien Debt | 4 |  | 227 | (227) |  |  |  |
| MGTF Holdco, LLC <sup>(5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| MGTF Radio Company, LLC <sup>(5)</sup> | Senior Secured First Lien Debt | 12882 |  | 45598 | (688) | 6 | (13244) | 31672 |
| Post Road Equipment Finance, LLC <sup>(5) (7)</sup> | Subordinated Debt | 3579 | 11000 | 38999 | (14961) |  | (39) | 35000 |
| Post Road Equipment Finance, LLC <sup>(5) (7)</sup> | Subordinated Debt | 117 |  | 7000 | (4008) |  | 8 | 3000 |
| Post Road Equipment Finance, LLC <sup>(5) (7)</sup> | Subordinated Debt | 7940 | 24500 | 38117 | 63 |  | (81) | 62599 |
| Post Road Equipment Finance, LLC <sup>(5) (7)</sup> | Equity/Other Investments | 10861 | 32600 | 86699 | 142 |  | (208) | 119233 |
| Siena Capital Finance, LLC <sup>(5)</sup> | Subordinated Debt | 6307 |  | 59452 | (9902) | (14) | (36) | 49500 |
| Siena Capital Finance, LLC <sup>(5)</sup> | Equity/Other Investments | 11050 |  | 77310 | 127 |  | (127) | 77310 |
| WPNT, LLC <sup>(5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;**Total Control Investments** |  | $84728 | $68100 | $762372 | $(30175) | $(8) | $(14734) | $785556 |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company** <sup>(1)</sup> | **Type of Asset** | **Amount of dividends and interest included in income** | **Beginning Fair Value at December 31, 2023** | **Gross additions\*** | **Gross reductions\*\*** | **Realized Gain/(Loss)** | **Change in Unrealized Gain (Loss)** <sup>(7)</sup> | **Fair Value at December 31, 2024** |
| **Affiliate Investments** | | | | | | | | |
| &nbsp;&nbsp;CRS-SPV, Inc. <sup>(5)</sup> | Equity/Other Investments | $— | $— | $1559 | $2 | $— | $143 | $1704 |
| &nbsp;&nbsp;First Eagle Greenway Fund II, LLC | Equity/Other Investments |  |  | 374 | 1 |  | (120) | 255 |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(5)</sup> | Senior Secured First Lien Debt | 16 |  | 345 | (135) |  |  | 210 |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(5)</sup> | Senior Secured First Lien Debt | 99 |  | 1406 | (12) |  | (1) | 1393 |
| &nbsp;&nbsp;Integrated Efficiency Solutions, Inc. <sup>(5)</sup> | Senior Secured Second Lien Debt | 260 |  | 1074 | 1 |  | (629) | 446 |
| &nbsp;&nbsp;Lakeview Health Holdings, Inc. <sup>(4) (5)</sup> | Senior Secured First Lien Debt |  |  | 1112 | (1112) |  |  |  |
| &nbsp;&nbsp;Lakeview Health Holdings, Inc. <sup>(4) (5)</sup> | Senior Secured First Lien Debt | 98 |  | 2505 | (2503) | (2) |  |  |
| &nbsp;&nbsp;Lakeview Health Holdings, Inc. <sup>(4) (5)</sup> | Senior Secured First Lien Debt | 4 |  | 130 | (130) |  |  |  |
| &nbsp;&nbsp;Lakeview Health Holdings, Inc. <sup>(4) (5)</sup> | Senior Secured First Lien Debt |  |  | 618 | (649) | 31 |  |  |
| &nbsp;&nbsp;Lakeview Health Holdings, Inc. <sup>(4) (5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;NewStar Arlington Senior Loan Program, LLC 14-1A FR <sup>(5)</sup> | Collateralized Securities | 782 |  | 4199 | 7 |  | 31 | 4237 |
| &nbsp;&nbsp;NewStar Arlington Senior Loan Program, LLC 14-1A SUB <sup>(5)</sup> | Collateralized Securities | 409 |  | 5472 | (2309) |  | (993) | 2170 |
| &nbsp;&nbsp;Newstar Fairfield Fund CLO, Ltd. 2015-1RA F <sup>(5)</sup> | Collateralized Securities | 1338 |  | 9257 | (7477) | 536 | 141 | 2457 |
| &nbsp;&nbsp;Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB <sup>(5)</sup> | Collateralized Securities |  |  |  |  |  | 1208 | 1208 |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(5)</sup> | Senior Secured Second Lien Debt | 960 |  | 5640 | 8 |  | (649) | 4999 |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(5)</sup> | Senior Secured First Lien Debt | 1145 |  | 10108 | 17 |  | (13) | 10112 |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(5)</sup> | Senior Secured First Lien Debt | 3 |  |  |  |  |  |  |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;ORG GC Holdings, LLC <sup>(5)</sup> | Equity/Other Investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;PennantPark Credit Opportunities Fund II, LP  | Equity/Other Investments |  |  | 960 | 2 |  | (359) | 603 |
| &nbsp;&nbsp;Tennenbaum Waterman Fund, LP | Equity/Other Investments | 700 |  | 8754 | (2066) |  | (886) | 5802 |
| &nbsp;&nbsp;**Total Affiliate Investments** |  | $5814 | $— | $53513 | $(16355) | $565 | $(2127) | $35596 |
| &nbsp;&nbsp;**Total Control & Affiliate Investments** |  | $90542 | $68100 | $815885 | $(46530) | $557 | $(16861) | $821152 |

---

—–—–—–—–—–

\* Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities, and the movement of an existing portfolio company into this category from a different category. Includes investments acquired in connection with the Mergers.

\*\* Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities, and the movement of an existing portfolio company out of this category into a different category.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

(1) The principal amount and ownership detail are shown in the Consolidated Schedules of Investments.

(2) Investment is non-income producing at December 31, 2024.

(3) The Company and CCLF are the members of SLF, a joint venture formed as a Delaware limited liability company that is not consolidated by either member for financial reporting purposes. The members make investments in SLF in the form of LLC equity interests as SLF makes investments, and all portfolio and other material decisions regarding SLF must be submitted to SLF's board of directors which is comprised of an equal number of members appointed by each the Company and CCLF. Because management of SLF is shared equally between us and CCLF, we do not believe we control SLF for purposes of assessing consolidation under U.S. GAAP or otherwise.

(4) Investment no longer held as of December 31, 2024.

(5) The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's Board of Directors as required by the 1940 Act. Such investments are valued using significant unobservable inputs (See Note 3 to the consolidated financial statements).

(6) Gross of net change in deferred taxes in the amount of $(2.1) million.

(7) The Company's investment falls under the definition of a significant subsidiary, as it exceeded the threshold of at least one of the tests under Rule 4-08(g), or exceeded the threshold of at least one of the tests under Rule 3-09. See Note 3 for summarized financial information.

**Note 18 - Segment Reporting**

The Company operates through a single operating and reporting segment with an investment objective to generate both current income and capital appreciation through debt and equity investments. The Chief Operating Decision Maker (the "CODM") is comprised of the Company's Chief Executive Officer, President, and Chief Financial Officer and the CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company's net increase in stockholders' equity resulting from operations ("net income"). The evaluation of this key metric is used in determining the allocation of resources and the amount of dividends to the Company's stockholders. As the Company's operations comprise a single reporting segment, the segment assets are reflected on the accompanying consolidated statements of assets and liabilities as total assets and the significant segment expenses are listed on the accompanying consolidated statements of operations.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 19 - Merger with FBLC** 

On January 24, 2024, the Company completed its previously announced acquisition of FBLC. Pursuant to the Merger Agreement, Merger Sub was first merged with and into FBLC, with FBLC continuing as the surviving company, and, immediately following the Merger, FBLC was then merged with and into the Company, with the Company continuing as the surviving company. In accordance with the terms of the Merger Agreement, at the effective time, each outstanding share of FBLC's common stock was converted into the right to receive 0.4647 shares of the Company's common stock. As a result of the Mergers, the Company issued an aggregate of 110.0 million shares of its common stock to FBLC stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;The Merger was accounted for as an asset acquisition of FBLC by the Company in accordance with the asset acquisition method of accounting as detailed in *ASC 805*, Business Combinations, with the fair value of total consideration paid, including transaction costs, in conjunction with the Mergers allocated to the assets acquired and liabilities assumed based on their relative fair values as of the date of the Mergers. Generally, under asset acquisition accounting, acquiring assets in groups not only requires ascertaining the cost of the asset (or net assets), but also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group. The cost of the group of assets acquired in an asset acquisition was allocated to the individual assets acquired or liabilities assumed based on their relative fair values of net identifiable assets acquired other than certain "non-qualifying" assets (for example cash) and does not give rise to goodwill. As a result, the purchase price premium was allocated to the cost basis of the FBLC investments acquired by the Company on a pro-rata basis based on their relative fair values as of the effective time of the Merger. The Company will be the accounting survivor of the Mergers. The purchase premium allocated to the debt investments acquired will amortize over the life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized depreciation on such investment acquired through its ultimate disposition. The purchase premium allocated to equity investments acquired will not amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company will recognize a realized loss with a corresponding reversal of the unrealized depreciation on disposition of such equity investments acquired. The Merger constitutes an integrated plan of the type contemplated in Internal Revenue Service Revenue Ruling 2001-46 and will qualify as a tax-free reorganization within the meaning of Section 368(a) of the Code. The Company has carried forward the historical cost basis of FBLC investments for tax purposes. As a result of the Merger, the Company is subject to an annual limit on its use of some of its unrealized capital losses to offset capital gains in future periods. If those losses are realized and the limitation prevents the Company from using any of those losses in a future period, those capital losses will be available to offset capital gains in subsequent periods. Additionally, net operating losses of one of the Company's domestic subsidiaries is subject to an annual limitation. Losses subject to limitation will be available in subsequent periods.

The following table summarizes the allocation of consideration paid to the assets acquired and liabilities assumed as a result of the Mergers:

---

| | |
|:---|:---|
| Common Stock issued by the Company | $1594261 |
| Transaction costs | 4623 |
| **Consideration Paid** | $**1598884** |
| Investments | $2814321 |
| Cash and cash equivalents | 58478 |
| Other Assets | 48585 |
| **Total Assets Acquired** | $**2921384** |
| Debt | $1286190 |
| Other Liabilities | 40933 |
| **Total liabilities acquired** | $**1327123** |
| **Total net assets acquired** | $**1594261** |

---

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

**Note 20 - Subsequent Events**

In preparing these financial statements, the Company's management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

***Distribution Declarations***

On November 6, 2025, the Board of Directors declared a regular quarterly distribution of $0.29 per share of Common Stock, which will be paid on or around December 18, 2025 to stockholders of record as of November 6, 2025.

On November 6, 2025, the Board of Directors declared a distribution of $19.12 per share of Series A Preferred Stock, which will be paid on or around December 18, 2025 to stockholders of record as of November 6, 2025.

***Return of Capital Distribution from SLF***

On October 15, 2025, SLF distributed $80.0 million to the Company as a return of capital. The Company and CCLF ownership on the LLC equity interests of SLF remained 80.0% and 20.0%, respectively.

***Issuance of 6.000% Notes due 2030***

On October 2, 2025, the Company and U.S. Bank Trust Company, National Association entered into a Fourth

Supplemental Indenture (the "Fourth Supplemental Indenture") to the 2021 Indenture, relating to the Company's issuance of

$300,000,000 aggregate principal amount of its 6.000% notes due 2030 (the "2030 Notes").

The 2030 Notes will mature on October 2, 2030, and may be redeemed in whole or in part at the Company's option at

any time or from time to time at the redemption prices set forth in the Fourth Supplemental Indenture. The 2030 Notes bear

interest at a rate of 6.000% per year payable semi-annually on April 2 and October 2 of each year, commencing on April 2, 2026. The 2030 Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the

Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2030 Notes, rank pari

passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any

of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the

value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including

trade payables) incurred by the Company's consolidated and unconsolidated subsidiaries, financing vehicles or similar facilities.

The 2021 Indenture, as supplemented by the Fourth Supplemental Indenture, contains certain covenants, including

covenants requiring the Company to comply with the asset coverage requirements of Section 18(a)(1)(A) as modified by

Section 61(a) of the 1940 Act, whether or not it is subject to those requirements, and to provide financial information to the

holders of the 2030 Notes and U.S. Bank Trust Company, National Association if the Company is no longer subject to the

reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are

described in the Indenture.

In addition, on the occurrence of a "Change of Control Repurchase Event," as defined in the Fourth Supplemental

Indenture, the Company will generally be required to make an offer to purchase the outstanding 2030 Notes at a price equal to

100% of the principal amount of such 2030 Notes plus any accrued and unpaid interest on the 2030 Notes repurchased to, but

not including, the date of purchase.

------

**FRANKLIN BSP CAPITAL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share amounts, percentages and as otherwise indicated)**

**For the period ended September 30, 2025**

**(Unaudited)**

In connection with the issuance of the 2030 Notes, the Company entered into a Registration Rights Agreement, dated

as of October 2, 2025 (the "Registration Rights Agreement"), with J.P. Morgan Securities LLC, BofA Securities, Inc., SMBC

Nikko Securities America, Inc. and Wells Fargo Securities, LLC, as the representatives of the initial purchasers of the 2030

Notes, pursuant to which, the Company is obligated to file with the Securities and Exchange Commission a registration

statement relating to an offer to exchange the 2030 Notes for new notes issued by the Company that are registered under the Securities Act and otherwise have terms substantially identical to those of the 2030 Notes, and to use its commercially reasonable efforts to cause such registration statement to be declared effective. If the Company is not able to effect the exchange offer, the company will be obligated to file a shelf registration statement covering the resale of the 2030 Notes and use its commercially reasonable efforts to cause such registration statement to be declared effective. If the Company fails to satisfy its registration obligations by certain dates specified in the Registration Rights Agreement, it will be required to pay additional interest to the holders of the 2030 Notes.

------

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements of Franklin BSP Capital Corporation (including, for periods prior to the Conversion, Franklin BSP Capital L.L.C., a Delaware limited liability company, the "Company," "FBCC," "we," "us," or "our") and the notes thereto and other financial information included elsewhere in this Quarterly Report on Form 10-Q. We are externally managed by our adviser, Franklin BSP Capital Adviser L.L.C. (the "Adviser").*

**Forward Looking Statements**

This report, and other statements that we may make, may contain forward-looking statements with respect to future financial or business performance, strategies, or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future conditional verbs such as "will," "would," "should," "could," "may," or similar expressions.

Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and we assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in our U.S. Securities and Exchange Commission ("SEC") reports and those identified elsewhere in this report, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, including the effect of elevated interest rates, trade tensions, uncertainties regarding actual and potential shifts in U.S. and foreign trade, economic and other policies with other countries, and a potential global recession;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of geo-political conditions, including revolution, insurgency, terrorism or war, including those arising out of the ongoing conflicts in the Middle East and Eastern Europe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of the investments that we expect to make;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our portfolio companies to achieve their objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our contractual arrangements and relationships with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expected financings and investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the adequacy of our cash resources and working capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing of cash flows, if any, from the operations of our portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our repurchase of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual and potential conflicts of interest with our Adviser (as defined below) and its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the dependence of our future success on the general economy and its effect on the industries in which we invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to qualify and maintain our qualifications as a regulated investment company ("RIC") and a business development company ("BDC");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing, form, and amount of any distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of fluctuations in interest rates on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the valuation of any investments in portfolio companies, particularly those having no liquid trading market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of changes to generally accepted accounting principles;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of changes to tax legislation and, generally, our tax position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our Adviser to locate suitable investments for us and to monitor and administer our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our Adviser and its affiliates to attract and retain highly talented professionals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to realize the anticipated benefits of the Mergers (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of disruption on our business from the Mergers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the combined company's plans, expectations, objectives and intentions as a result of the Mergers.

You should not place undue reliance on these forward-looking statements. The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligations to update any forward-looking statement to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

**Overview**

We are an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a BDC, and has elected to be treated for U.S. federal income tax purposes, as a RIC under the Code. We are managed by the Adviser. The Adviser is an affiliate of Benefit Street Partners. Our Adviser is a Delaware limited liability company that is registered as an investment adviser under the Advisers Act. Our Adviser oversees the management of our activities and is responsible for making investment decisions with respect to our portfolio.

Our investment objective is to generate both current income and capital appreciation through debt and equity investments. We intend to invest primarily in first and second lien senior secured loans, and to a lesser extent, mezzanine loans, unsecured loans and equity of predominantly private U.S. middle market companies. We define middle market companies as those with EBITDA of between $25 million and $100 million annually, although we may invest in larger or smaller companies. We also may purchase interests in loans or corporate bonds through secondary market transactions. We expect that each investment generally will range between approximately 0.5% and 3.0% of our total assets. As of September 30, 2025, 80.2% of our portfolio was invested in senior secured loans.

Senior secured loans generally are senior debt instruments that rank ahead of subordinated debt and equity in priority of payments and are generally secured by liens on the operating assets of a borrower which may include inventory, receivables, plant, property and equipment. Mezzanine debt is subordinated to senior loans and is generally unsecured.

On December 18, 2020, we completed our Initial Closing of Capital Commitments to purchase shares of our Common Stock to investors in a private placement in reliance on exemptions from the registration requirements of the Securities Act. Since our Initial Closing, we held additional closings and received aggregate Capital Commitments to purchase Common Stock. As of September 30, 2025, investors had made aggregate Capital Commitments to purchase Common Stock of $375.5 million. At each closing of the private placement, each investor will make a Capital Commitment to purchase shares of Common Stock pursuant to a Subscription Agreement entered into with us. Investors will be required to fund drawdowns to purchase shares of Common Stock up to the amount of their respective Capital Commitments on an as-needed basis each time we deliver a notice to the investors. Closings of the private placement of our Common Stock occurred, from time to time, during the Initial Closing Period which our Board of Directors extended such that it ended December 18, 2023. After the Initial Closing Period, we may permit one or more additional closings of the private placement of our Common Stock with the approval of our Board of Directors.

On August 25, 2021, we filed the Certificate of Designation for the Series A Preferred Stock. On the same day, we entered into the Preferred Subscription Agreements with certain investors, pursuant to which investors made new Preferred Capital Commitments to purchase shares of our Series A Preferred Stock. As of September 30, 2025, total Preferred Capital Commitments of Series A Preferred Stock were $77.5 million.

------

On January 24, 2024, we consummated the transactions contemplated by the Agreement and Plan of Merger (the "Merger Agreement") with Franklin BSP Lending Corporation, a Maryland corporation ("FBLC"), Franklin BSP Merger Sub, Inc., a Maryland corporation and our direct wholly-owned subsidiary ("Merger Sub"), and, solely for the limited purposes set forth therein, the Adviser. In connection therewith, Merger Sub merged with and into FBLC (the "Merger"), with FBLC continuing as the surviving company and as our wholly-owned subsidiary, followed by FBLC merging with and into us (together with the Merger, the "Mergers"), and with us continuing as the surviving company. See *Note 19 - Merger with FBLC* for further information regarding the Mergers.

**Financial and Operating Highlights**

---

| | |
|:---|:---|
| *(Dollars in thousands, except per share amounts)* |  |
| **At September 30, 2025:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Portfolio | $4081496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets attributable to common stock | 1843547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt (net of deferred financing costs) | 2303720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net asset value per share attributable to common stock | 13.67 |
| **Portfolio Activity for the Nine Months Ended September 30, 2025:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases during the period | 842524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales, repayments, and other exits during the period  | 703449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of portfolio companies at end of period | 151 |
| **Operating Results for the Nine Months Ended September 30, 2025:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) per share | 0.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in net assets per share resulting from operations attributable to common stockholders and participating securities | 0.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) | 124582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) | (49283) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in net assets resulting from operations attributable to common stockholders | 70430 |

---

**Portfolio and Investment Activity**

We invest primarily in first and second lien senior secured loans, and to a lesser extent, mezzanine loans, unsecured loans and equity of predominantly private U.S. middle market companies. We define middle market companies as those with EBITDA of between $25 million and $100 million annually, although we may invest in larger or smaller companies. We also may purchase interests in loans or corporate bonds through secondary market transactions.

During the nine months ended September 30, 2025, we made $842.5 million of investments in portfolio companies and had $703.4 million in aggregate amount of sales and repayments, resulting in net investments of $139.1 million for the period, excluding any impact from the Mergers. The total portfolio of debt investments at fair value consisted of 94.2% bearing variable interest rates and 5.8% bearing fixed interest rates.

------

Our portfolio composition, based on fair value at September 30, 2025 was as follows:

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** |
| | **Percentage of**<br>**Total Portfolio**<sup>(1)</sup> | **Weighted Average Current Yield for Total Portfolio** <sup>(2)</sup> |
| Senior Secured First Lien Debt | 76.8% | 9.8% |
| Senior Secured Second Lien Debt | 3.4 | 13.6 |
| Subordinated Debt | 5.6 | 12.8 |
| **Debt Subtotal** | 85.8% | 10.1% |
| Collateralized Securities <sup>(3)</sup> | 0.1 | 15.0 |
| Equity/Other <sup>(4)</sup> | 6.6 | 9.7 |
| FBLC Senior Loan Fund LLC <sup>(4)</sup> | 7.5 | 9.0 |
| **Total** | 100.0% | 10.0% |

---

<sup>(1)</sup> As of September 30, 2025, FBLC Senior Loan Fund, LLC's holdings consisted of 93.8% senior secured debt, of which 91.4% represented senior secured first lien debt. As of September 30, 2025, we held investments in Siena Capital Finance, LLC ("Siena") consisting of subordinated debt and equity, which represented 1.3% and 1.9% of our total portfolio, respectively. As of September 30, 2025, we held investments in Post Road Equipment Finance, LLC ("Post Road") consisting of subordinated debt and equity, which represented 2.4% and 3.1% of our total portfolio, respectively. The respective businesses of Siena and Post Road primarily involve making senior secured asset-based loans to middle market companies and equipment finance transactions secured by mission-critical equipment of middle market companies, respectively. If the underlying investments of FBLC Senior Loan Fund described above were held by us and we were to treat the investments in Siena and Post Road as senior secured first lien investments, given the underlying businesses of those portfolio companies, then our portfolio composition as of September 30, 2025 would be as follows:

---

| | |
|:---|:---|
| | **September 30, 2025** |
| | **Percentage of<br>Total Portfolio** |
| Senior Secured First Lien Debt | 92.3% |
| Senior Secured Second Lien Debt | 3.4 |
| **Senior Secured - Subtotal** | 95.7% |
| Subordinated Debt | 1.9 |
| Collateralized Securities | 0.6 |
| Equity/Other | 1.8 |
| **Total** | 100.0% |

---

<sup>(2)</sup> Includes the effect of the amortization or accretion of loan premiums or discounts.

<sup>(3)</sup> Weighted average current yield for Collateralized Securities is based on the estimation of effective yield to expected maturity for each security as calculated in accordance with Accounting Standards Codification ("ASC") *Topic 325-40-35*, Beneficial Interests in Securitized Financial Assets (see *[Note 2 - Summary of Significant Accounting Policies](#ica7834b2a94a41c89a6a99cf91879fe8_43)*).

<sup>(4)</sup> Weighted average current yield for Equity/Other may be based on actual or annualized income, where applicable.

During the year ended December 31, 2024, we made $1.1 billion of investments in portfolio companies and had $651.2 million in aggregate amount of sales and repayments, resulting in net investments of $450.9 million for the period, excluding any impact from the Mergers. The total portfolio of debt investments at fair value consisted of 94.9% bearing variable interest rates and 5.1% bearing fixed interest rates.

------

Our portfolio composition, based on fair value at December 31, 2024 was as follows:

---

| | | |
|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** |
| | **Percentage of**<br>**Total Portfolio**<sup>(1)</sup> | **Weighted Average Current Yield for Total Portfolio** <sup>(2)</sup> |
| Senior Secured First Lien Debt | 74.7% | 10.5% |
| Senior Secured Second Lien Debt | 3.1 | 15.3 |
| Subordinated Debt | 5.0 | 11.9 |
| **Debt Subtotal** | 82.8% | 10.8% |
| Collateralized Securities <sup>(3)</sup> | 0.3 | 14.6 |
| Equity/Other <sup>(4)</sup> | 6.7 | 8.9 |
| FBLC Senior Loan Fund LLC <sup>(4)</sup> | 10.2 | 9.0 |
| **Total** | 100.0% | 10.5% |

---

<sup>(1)</sup> As of December 31, 2024, FBLC Senior Loan Fund, LLC's holdings consisted of 93.0% senior secured debt, of which 91.4% represented senior secured first lien debt. As of December 31, 2024, we held investments in Siena Capital Finance, LLC ("Siena") consisting of subordinated debt and equity, which represented 1.2% and 1.9% of our total portfolio, respectively. As of December 31, 2024, we held investments in Post Road Equipment Finance, LLC ("Post Road") consisting of subordinated debt and equity, which represented 2.5% and 3.0% of our total portfolio, respectively. The respective businesses of Siena and Post Road primarily involve making senior secured asset-based loans to middle market companies and equipment finance transactions secured by mission-critical equipment of middle market companies, respectively. If the underlying investments of FBLC Senior Loan Fund described above were held by us and we were to treat the investments in Siena and Post Road as senior secured first lien investments, given the underlying businesses of those portfolio companies, then our portfolio composition as of December 31, 2024 would be as follows:

---

| | |
|:---|:---|
| | **December 31, 2024** |
| | **Percentage of<br>Total Portfolio** |
| Senior Secured First Lien Debt | 92.7% |
| Senior Secured Second Lien Debt | 3.1 |
| **Senior Secured - Subtotal** | 95.8% |
| Subordinated Debt | 1.0 |
| Collateralized Securities | 1.4 |
| Equity/Other | 1.8 |
| **Total** | 100.0% |

---

<sup>(2)</sup> Includes the effect of the amortization or accretion of loan premiums or discounts.

<sup>(3)</sup> Weighted average current yield for Collateralized Securities is based on the estimation of effective yield to expected maturity for each security as calculated in accordance with Accounting Standards Codification ("ASC") Topic 325-40-35, Beneficial Interests in Securitized Financial Assets (see*[Note 2 - Summary of Significant Accounting Policies](#ica7834b2a94a41c89a6a99cf91879fe8_43)*).

<sup>(4)</sup> Weighted average current yield for Equity/Other may be based on actual or annualized income, where applicable.

------

**Portfolio Asset Quality**

Our Adviser employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our Adviser grades the credit risk of all debt investments on a scale of 1 to 5 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio debt investment relative to the inherent risk at the time the original debt investment was made (i.e., at the time of acquisition), although it may also take into account under certain circumstances the performance of the portfolio company's business, the collateral coverage of the investment and other relevant factors.

---

| | |
|:---|:---|
| **<u>Loan Rating</u>** | **<u>Summary Description</u>** |
| 1 | Debt investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since the time of investment are favorable. |
| 2 | Performing consistent with expectations or slightly below, no near-term covenant breaches or losses expected. Trends and risk factors are neutral to favorable. All investments are initially rated a "2". |
| 3 | Performing below expectations with potential for covenant breach or loss. Trends and risk factors show some deterioration. |
| 4 | Performing materially below expectations with risk of covenant breach and interest loss. |
| 5 | Performing materially below expectations with risk of covenant breach, interest loss and principal loss/default. |

---

The weighted average risk rating of our investments based on fair value was 2.2 as of both September 30, 2025 and December 31, 2024. As of September 30, 2025, we had nine portfolio companies on non-accrual status with a total amortized cost of $144.5 million and fair value of $76.3 million, which represented 3.4% and 1.9% of the investment portfolio's total amortized cost and fair value, respectively. As of December 31, 2024, we had eight portfolio companies on non-accrual status with a total amortized cost of $105.1 million and fair value of $65.5 million, which represented 2.6% and 1.7% of the investment portfolio's total amortized cost and fair value, respectively. Refer to *[Note 2 - Summary of Significant Accounting Policies](#ica7834b2a94a41c89a6a99cf91879fe8_43)* for additional details regarding our non-accrual policy.

**FBLC Senior Loan Fund, LLC**

On January 24, 2024, as a result of the consummation of the Mergers, we became party to the joint venture formed on January 20, 2021, between FBLC and Cliffwater Corporate Lending Fund ("CCLF"), FBLC Senior Loan Fund, LLC ("SLF"). SLF invests primarily in senior secured loans and, to a lesser extent, may invest in mezzanine loans, unsecured loans and equity of predominantly private U.S. middle market companies. SLF was formed as a Delaware limited liability company and is not consolidated by us for financial reporting purposes. We provide capital to SLF in the form of LLC equity interests. At formation, FBLC and CCLF owned 87.5% and 12.5%, respectively, of the LLC equity interests of SLF. On July 2, 2024, the Company contributed $100.0 million of additional capital into SLF. On February 28, 2025, SLF distributed $100.0 million to the Company as a return of capital. As of September 30, 2025, we and CCLF owned 80.0% and 20.0%, respectively, of the LLC equity interests of SLF. Profit and loss are allocated based on each members' ownership percentage of the joint venture's net asset value. SLF has an Administrative and Loan Services Agreement with BSP, our affiliate, pursuant to which BSP provides certain operational and valuation services for SLF's investments; as well as certain agreements with third-party service providers. We and CCLF each appoint two members to SLF's four-person board of members. All material decisions with respect to SLF, including those involving its investment portfolio, require unanimous approval of a quorum of the board of members. Quorum is defined as (i) the presence of two members of the board of members; provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of members; provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the board of members; provided that two individuals are present that were elected, designated or appointed by each member.

As of September 30, 2025, our investment in SLF consisted of equity contributions of $304.9 million. Our investment in SLF is classified as "Equity/Other" on the consolidated schedules of investments, and other disclosures unless otherwise indicated.

------

Below is a summary of SLF's portfolio as of September 30, 2025 and December 31, 2024. A listing of the individual investments in SLF's portfolio as of such dates can be found in *[Note 3 – Fair Value of](#ica7834b2a94a41c89a6a99cf91879fe8_46)Financial Instruments* in the notes to the accompanying consolidated financial statements (dollars in thousands):

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Total assets | $949486 | $1151336 |
| Total investments <sup>(1)</sup> | $920991 | $1103160 |
| Weighted Average Current Yield for Total Portfolio <sup>(2)</sup> | 8.4% | 9.1% |
| Number of Portfolio companies in SLF | 175 | 210 |
| Largest portfolio company investment <sup>(1)</sup> | $17244 | $17223 |
| Total of five largest portfolio company investments <sup>(1)</sup> | $70571 | $72582 |

---

<sup>(1)</sup> At fair value.

<sup>(2)</sup> Includes the effect of the amortization or accretion of loan premiums or discounts.

Below is certain summarized financial information for SLF as of September 30, 2025 and December 31, 2024 and for the three and nine months ended September 30, 2025 and September 30, 2024 (dollars in thousands):

---

| | | |
|:---|:---|:---|
| **Selected Statements of Assets and Liabilities Information** | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| Investments, at fair value (amortized cost of $951,993 and $1,116,992, respectively)  | $920991 | $1103160 |
| Cash and other assets | 28495 | 48176 |
| &nbsp;&nbsp;Total assets | $949486 | $1151336 |
| **LIABILITIES** |  |  |
| Revolving credit facilities (net of deferred financing costs of $1,425 and $1,469, respectively) | $519575 | $588531 |
| Secured borrowings | 633 | 4599 |
| Other liabilities | 41269 | 57568 |
| &nbsp;&nbsp;Total Liabilities | $561477 | $650698 |
| **MEMBERS' CAPITAL** |  |  |
| &nbsp;&nbsp;Total members' capital | $388009 | $500638 |
| Total liabilities and members' capital | $949486 | $1151336 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Selected Statements of Operations Information** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Investment income:** |  |  |  |  |
| &nbsp;&nbsp;Total investment income | $19848 | $26304 | $63432 | $77193 |
| **Operating expenses:** |  |  |  |  |
| Interest and credit facility financing expenses | 8677 | 10715 | 26724 | 31919 |
| Other expenses | 634 | 617 | 1848 | 1836 |
| &nbsp;&nbsp;Total expenses | 9311 | 11332 | 28572 | 33755 |
| **Net investment income** | 10537 | 14971 | 34860 | 43438 |
| **Realized and unrealized gain (loss) on investments:** |  |  |  |  |
| Net realized and unrealized gain (loss) on investments | (7209) | (2178) | (20220) | (1521) |
| Net increase (decrease) in members' capital resulting from operations | $3328 | $12794 | $14640 | $41917 |

---

**RESULTS OF OPERATIONS**

***Investments***

Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle market companies, the level of merger and acquisition activity for such companies, the general economic environment, the amount of capital we have available to us and the competitive environment for the type of investments we make.

Our investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in first and second lien senior secured loans, and to a lesser extent, mezzanine loans, unsecured loans and equity of predominantly private U.S. middle market companies. We define middle market companies as those with EBITDA of between $25 million and $100 million annually, although we may invest in larger or smaller companies. We also may purchase interests in loans or corporate bonds through secondary market transactions, which refers to acquisitions from secondary market participants rather than from the portfolio company directly.

As a BDC, we are generally required to invest at least 70% of our total assets primarily in securities of private and certain U.S. public companies (other than certain financial institutions), cash, cash equivalents and U.S. government securities and other limited float high quality debt investments that mature in one year or less.

***Revenues***

We generate revenues primarily in the form of interest income on debt investments we hold, and to a lesser extent, capital gains and distributions, if any, on equity securities that we may acquire in portfolio companies. Some of our investments may provide for deferred interest payments or PIK income.

In addition, we may generate revenue in the form of fee income such as structuring fees, origination, closing, amendment fees, commitment, termination, and other upfront fees. We do not expect to receive material fee income as it is not our principal investment strategy. Upon the re-payment of a loan or debt security, any prepayment penalties and unamortized loan origination, structuring, closing, commitment, and other upfront fees are recorded as income.

------

***Expenses***

We will bear all out-of-pocket costs and expenses of our operations and transactions, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses incurred by the Adviser and payable to third parties, including agents, consultants and other advisors, in monitoring our financial and legal affairs, news and quotation subscriptions, and market or industry research expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of calculating our NAV; the cost of effecting sales and repurchases of shares of our Common Stock and other securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• management and incentive fees payable pursuant to the Amended and Restated Investment Advisory Agreement; fees payable to third parties, including agents, consultants and other advisors, relating to, or associated with, making investments, and, if necessary, enforcing its rights, and valuing investments (including third-party valuation firms);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses related to consummated or unconsummated investments, including dead deal or broken deal expenses; rating agency expenses; fees to arrange our debt financings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• distributions on our shares; administration fees payable under the Administration Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the allocated costs incurred by our Administrator in providing managerial assistance to those portfolio companies that request it; transfer agent and custodial fees; fees and expenses associated with marketing efforts (including attendance at investment conferences and similar events); accounting, audit and tax preparation expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• federal and state registration fees; any exchange listing fees; federal, state, local, and other taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs and expenses incurred in relation to compliance with applicable laws and regulations and our operation and administration generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• independent directors' fees and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• brokerage commissions; costs of proxy statements, stockholders' reports and notices; costs of preparing government filings, including periodic and current reports with the SEC; our fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums; indemnification payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses relating to the development and maintenance of our website, if any; other operations and technology costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• direct costs and expenses of administration, including printing, mailing, copying, telephone, fees of independent accountants and outside legal costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all other expenses incurred by us or our Administrator in connection with administering our business, including, but not limited to, payments under the Administration Agreement based upon our allocable portion of our Administrator's overhead in performing its obligations under the Administration Agreement, including rent, travel and the allocable portion of the cost of our Chief Compliance Officer and Chief Financial Officer and their respective staffs, including operations and tax professionals and administrative staff who provide support services in respect of us.

------

Our operating results for the three and nine months ended September 30, 2025, and 2024 were as follows (dollars in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Total investment income | $103933 | $106184 | $314865 | $307359 |
| Total expenses | 62843 | 60910 | 187821 | 162456 |
| Income tax expense, including excise tax | 1012 | 869 | 2462 | 2084 |
| Net investment income (loss) | $40078 | $44405 | $124582 | $142819 |

---

***Investment Income*** 

Investment income decreased from $106.2 million for the three months ended September 30, 2024 to $103.9 million for the three months ended September 30, 2025 due to lower SOFR rates. Investment income increased from $307.4 million for the nine months ended September 30, 2024, to $314.9 million for the nine months ended September 30, 2025, which was primarily driven by the Mergers with FBLC, which resulted in the acquisition of $2.8 billion of FBLC's investments at fair value on January 24, 2024. The nine months ended September 30, 2025, reflects a full quarter of total investment income post-Mergers, whereas the nine months ended September 30, 2024, excludes 24 days of investment income prior to the Mergers (i.e., January 1, 2024 to January 24, 2024). PIK income from investments increased from $4.4 million for the three months ended September 30, 2024 to $5.5 million for the three months ended September 30, 2025. PIK income from investments increased from $14.4 million for the nine months ended September 30, 2024 to $15.7 million for the nine months ended September 30, 2025. Fee and other income, included within total investment income, increased from $0.1 million for the three months ended September 30, 2024 to $0.9 million for the three months ended September 30, 2025. Fee and other income, included within total investment income, increased from $0.9 million for the nine months ended September 30, 2024 to $2.5 million for the nine months ended September 30, 2025. The increase in the Fee and other income was primarily due to an increase in one-time fees earned on certain investments, including commitment, prepayment fees and accelerated amortization of upfront fees from unscheduled paydowns for the three and nine months ended September 30, 2025.

***Operating Expenses***

The composition of our operating expenses for the three and nine months ended September 30, 2025, and 2024 were as follows (dollars in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Management fees | $15493 | $14613 | $45709 | $38931 |
| Incentive fee on income | 8122 | 8820 | 25052 | 26843 |
| Interest and debt fees | 35704 | 33166 | 104445 | 84377 |
| Professional fees | 1490 | 2079 | 5408 | 5887 |
| Other general and administrative | 1561 | 1755 | 5802 | 4872 |
| Administrative services | 217 | 222 | 648 | 692 |
| Directors' fees | 256 | 255 | 757 | 854 |
| Total expenses | $62843 | $60910 | $187821 | $162456 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

*Management Fees*

Management Fees increased from $14.6 million for the three months ended September 30, 2024 to $15.5 million for the three months ended September 30, 2025. Management Fees increased from $38.9 million for the nine months ended September 30, 2024 to $45.7 million for the nine months ended September 30, 2025. The increase in Management Fees for the

------

three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025 was driven by an increase in the average asset size due to the Mergers.

*Incentive Fees*

Incentive Fees decreased from $8.8 million for the three months ended September 30, 2024 to $8.1 million for the three months ended September 30, 2025. Incentive Fees decreased from $26.8 million for the nine months ended September 30, 2024 to $25.1 million for the nine months ended September 30, 2025. The decrease in Incentive Fees from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025 was driven by a decrease in pre-incentive fee net investment income.

*Interest and Debt Fees*

Interest and Debt Fees increased from $33.2 million for the three months ended September 30, 2024 to $35.7 million for the three months ended September 30, 2025. Interest and Debt Fees increased from $84.4 million for the nine months ended September 30, 2024 to $104.4 million for the nine months ended September 30, 2025. The increase for the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025 was primarily driven by the average daily debt outstanding for facility borrowings and unsecured notes. The average daily debt outstanding for the nine months ended September 30, 2024 was $1.5 billion compared to $2.1 billion for the nine months ended September 30, 2025. The weighted average annualized interest cost of the facility borrowings and unsecured notes for the nine months ended September 30, 2025 and 2024 were 6.18% and 6.88%, respectively.

*Professional Fees and Other General and Administrative Expenses*

Professional fees and other general and administrative expenses decreased from $3.8 million for the three months ended September 30, 2024 to $3.1 million for the three months ended September 30, 2025. Professional fees and other general and administrative expenses increased from $10.8 million for the nine months ended September 30, 2024 to $11.2 million for the nine months ended September 30, 2025.

------

***Net Realized Gain (Loss) and Net Change in Unrealized Appreciation (Depreciation) on Investments***

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments for the three and nine months ended September 30, 2025, and 2024 were as follows (dollars in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net realized gain (loss) |  |  |  |  |
| &nbsp;&nbsp;Control Investments | $— | $(3) | $(164) | $(6) |
| &nbsp;&nbsp;Affiliate Investments |  | 195 | 137 | 557 |
| &nbsp;&nbsp;Non-Affiliated Investments | 970 | (22859) | (7049) | (21685) |
| &nbsp;&nbsp;Net realized gain (loss) on derivatives | 17 |  | 23 |  |
| Total net realized gain (loss) | $987 | $(22667) | $(7053) | $(21134) |
| Net change in unrealized appreciation (depreciation) on investments |  |  |  |  |
| &nbsp;&nbsp;Control Investments | $(7183) | $(3588) | $(18575) | $(14604) |
| &nbsp;&nbsp;Affiliate Investments | (1688) | 839 | (4199) | (1477) |
| &nbsp;&nbsp;Non-Affiliated Investments | (6776) | 12197 | (14240) | (14257) |
| &nbsp;&nbsp;Net change in deferred taxes | (1132) | (638) | (4863) | (1667) |
| &nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on derivatives | (4) |  | (353) |  |
| Total net change in unrealized appreciation (depreciation) on investments | $(16783) | $8810 | $(42230) | $(32005) |
| Net realized and unrealized gain (loss) | $(15796) | $(13857) | $(49283) | $(53139) |

---

*Net Realized Gain (Loss) on Investments*

Realized gains or losses are measured using the specific identification method whereby we measure the gain or loss by the difference between the net proceeds from repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized.

For the three months ended September 30, 2025, we recorded a net realized gain of $1.0 million. The net realized gain was primarily driven by one portfolio company. For the nine months ended September 30, 2025, we recorded a net realized loss of $7.1 million. In June 2025, we restructured our first lien debt position of Coronis Health LLC which resulted in a net realized loss of $14.0 million offset by an unrealized gain of $14.8 million.

For the three months ended September 30, 2024, we recorded a net realized loss of $22.7 million. For the nine months ended September 30, 2024, we recorded a net realized loss of $21.1 million. The net realized loss for the three months ended September 30, 2024 was primarily driven by the restructuring of the first lien debt investments of Pluralsight, LLC in August 2024 which resulted in a realized loss of $19.1 million offset by an unrealized gain of $18.5 million.

*Net Change in Unrealized Appreciation (Depreciation) on Investments*

Net change in unrealized appreciation or depreciation is the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

------

For the three months ended September 30, 2025, we recorded unrealized depreciation of $24.4 million on 83 portfolio company investments, which was offset by $8.7 million of unrealized appreciation on 56 portfolio company investments. The unrealized depreciation primarily resulted from deteriorating credit performance of certain portfolio companies. MGTF Radio Company, LLC had its valuation lowered, which resulted in an unrealized loss of $7.8 million. The unrealized appreciation was primarily due to isolated valuation increases for a small number of portfolio companies. $1.1 million of the net unrealized loss was driven by a change in deferred taxes.

For the three months ended September 30, 2024, we recorded unrealized appreciation of $35.6 million on 133 portfolio company investments, which was offset by $26.2 million of unrealized depreciation on 180 portfolio company investments. The unrealized appreciation primarily resulted from improved performance of certain portfolio companies, the reversal of previously recorded unrealized depreciation, and the Pluralsight, LLC restructure. The unrealized depreciation was primarily due to isolated deterioration in the credit performance of a small number of portfolio companies, and the reversal of previously recorded unrealized appreciation. Additionally, $0.6 million of the net unrealized loss was driven by a change in deferred taxes. The overall net unrealized appreciation on our portfolio was primarily driven by the reversal of previously recorded unrealized depreciation.

For the nine months ended September 30, 2025, we recorded unrealized appreciation of $35.4 million on 57 portfolio company investments which was offset by $72.4 million of unrealized depreciation on 98 portfolio company investments. The unrealized appreciation primarily resulted from improved performance of certain portfolio companies and the reversal of previously recorded unrealized depreciation. The unrealized depreciation was primarily due to isolated deterioration in the credit performance of a small number of portfolio companies. $4.9 million of the net unrealized loss was driven by a change in deferred taxes. Additionally, $0.4 million of the net unrealized loss was driven by a change in unrealized depreciation on derivatives. The overall net unrealized depreciation on our portfolio was primarily driven by deterioration in the credit performance of certain portfolio companies.

For the nine months ended September 30, 2024, we recorded unrealized appreciation of $28.2 million on 145 portfolio company investments, which was offset by $58.5 million of unrealized depreciation on 184 portfolio company investments. The unrealized appreciation primarily resulted from improved performance of certain portfolio companies and the reversal of previously recorded unrealized depreciation. The unrealized depreciation was primarily due to isolated deterioration in the credit performance of a small number of portfolio companies. Additionally, $1.7 million of the net unrealized loss was driven by a change in deferred taxes. The overall net unrealized depreciation on our portfolio was primarily driven by deterioration in the credit performance of certain portfolio companies.

------

**Supplemental Information**

On January 24, 2024, we completed our previously announced acquisition of FBLC. Pursuant to the Merger Agreement, Merger Sub was first merged with and into FBLC, with FBLC continuing as the surviving company, and, immediately following the Merger, FBLC was then merged with and into us, with us continuing as the surviving company. In accordance with the terms of the Merger Agreement, at the effective time, each outstanding share of FBLC's common stock was converted into the right to receive 0.4647 shares of our common stock. As a result of the Mergers, we issued an aggregate of 110.0 million shares of our common stock to FBLC stockholders.

The Merger was accounted for as an asset acquisition of FBLC by us in accordance with the asset acquisition method of accounting as detailed in *ASC 805*, Business Combinations, with the fair value of total consideration paid, including transaction costs, in conjunction with the Mergers allocated to the assets acquired and liabilities assumed based on their relative fair values as of the date of the Mergers. The consideration paid to FBLC stockholders was more than the aggregate fair value of the assets acquired and liabilities assumed, which resulted in a purchase price premium. The purchase premium was allocated to the cost basis of the FBLC investments acquired by us on a pro-rata basis based on their relative fair values as of the effective time of the Merger. The purchase premium allocated to the debt investments acquired will amortize over the life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized depreciation on such investment acquired through its ultimate disposition. The purchase premium allocated to equity investments acquired will not amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, we will recognize a realized loss with a corresponding reversal of the unrealized depreciation on disposition of such equity investments acquired. Any adjustments to the cost basis of the acquired FBLC investments derived from the accounting treatment of the Mergers will be excluded from the incentive fee calculation.

As a supplement to our financial results reported in accordance with U.S. GAAP, we have provided, as detailed below, certain non-GAAP financial measures to our operating results that exclude the aforementioned purchase premium and the ongoing amortization thereof, as determined in accordance with U.S. GAAP. The non-GAAP financial measures include (i) adjusted net investment income after taxes; and (ii) adjusted net realized and unrealized gains (losses). We believe that the adjustment to exclude the full effect of the purchase premium is meaningful because it is a measure that we and investors use to assess our financial condition and results of operations. Although these non-GAAP financial measures are intended to enhance investors' understanding of our business and performance, these non-GAAP financial measures should not be considered as an alternative to U.S. GAAP. The aforementioned non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Non-GAAP Supplemental Disclosure:** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Net investment income (loss)** | $40078 | $44405 | $124582 | $142819 |
| &nbsp;&nbsp;Less: purchase premium and other cost adjustments <sup>(1)</sup> | (300) | (1131) | (1612) | (11746) |
| **Adjusted net investment income after taxes** | $39778 | $43274 | $122970 | $131073 |
| **Net realized and unrealized gains (losses)** | $(15796) | $(13857) | $(49283) | $(53139) |
| &nbsp;&nbsp;Less: Net change in unrealized appreciation (depreciation) due to the purchase premium and other cost adjustments <sup>(1)</sup> | 1508 | 15940 | 4097 | 30029 |
| &nbsp;&nbsp;Less: Realized gain (loss) due to the purchase premium and other cost adjustments <sup>(1)</sup> | (1208) | (14809) | (2485) | (18283) |
| **Adjusted net realized and unrealized gains (losses)** | $(15496) | $(12726) | $(47671) | $(41393) |

---

<sup>(1)</sup> Represents amortization of purchase premium and incremental amortization of acquired FBLC investments as a result of the accounting treatment of the Mergers under *ASC 805* for the periods January 1, 2025 to September 30, 2025 and January 24, 2024 to September 30, 2024, respectively. 

------

**Recent Developments**

***Distribution Declarations***

On November 6, 2025, the Board of Directors declared a regular quarterly distribution of $0.29 per share of Common Stock, which will be paid on or around December 18, 2025 to stockholders of record as of November 6, 2025.

On November 6, 2025, the Board of Directors declared a distribution of $19.12 per share of Series A Preferred Stock, which will be paid on or around December 18, 2025 to stockholders of record as of November 6, 2025.

***Issuance of 6.000% Notes due 2030***

On October 2, 2025, the Company and U.S. Bank Trust Company, National Association entered into a Fourth

Supplemental Indenture (the "Fourth Supplemental Indenture") to the 2021 Indenture, relating to the Company's issuance of

$300,000,000 aggregate principal amount of its 6.000% notes due 2030 (the "2030 Notes").

The 2030 Notes will mature on October 2, 2030, and may be redeemed in whole or in part at the Company's option at

any time or from time to time at the redemption prices set forth in the Fourth Supplemental Indenture. The 2030 Notes bear

interest at a rate of 6.000% per year payable semi-annually on April 2 and October 2 of each year, commencing on April 2,

2026. The 2030 Notes are general unsecured obligations of the Company that rank senior in right of payment to all of the

Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2030 Notes, rank pari

passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any

of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the

value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including

trade payables) incurred by the Company's consolidated and unconsolidated subsidiaries, financing vehicles or similar facilities.

The 2021 Indenture, as supplemented by the Fourth Supplemental Indenture, contains certain covenants, including

covenants requiring the Company to comply with the asset coverage requirements of Section 18(a)(1)(A) as modified by

Section 61(a) of the 1940 Act, whether or not it is subject to those requirements, and to provide financial information to the

holders of the 2030 Notes and U.S. Bank Trust Company, National Association if the Company is no longer subject to the

reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are

described in the Indenture.

In addition, on the occurrence of a "Change of Control Repurchase Event," as defined in the Fourth Supplemental

Indenture, the Company will generally be required to make an offer to purchase the outstanding 2030 Notes at a price equal to

100% of the principal amount of such 2030 Notes plus any accrued and unpaid interest on the 2030 Notes repurchased to, but

not including, the date of purchase.

In connection with the issuance of the 2030 Notes, the Company entered into a Registration Rights Agreement, dated

as of October 2, 2025 (the "Registration Rights Agreement"), with J.P. Morgan Securities LLC, BofA Securities, Inc., SMBC

Nikko Securities America, Inc. and Wells Fargo Securities, LLC, as the representatives of the initial purchasers of the 2030

Notes, pursuant to which, the Company is obligated to file with the Securities and Exchange Commission a registration

statement relating to an offer to exchange the 2030 Notes for new notes issued by the Company that are registered under the Securities Act and otherwise have terms substantially identical to those of the 2030 Notes, and to use its commercially reasonable efforts to cause such registration statement to be declared effective. If the Company is not able to effect the exchange offer, the Company will be obligated to file a shelf registration statement covering the resale of the 2030 Notes and use its commercially reasonable efforts to cause such registration statement to be declared effective. If the Company fails to satisfy its registration obligations by certain dates specified in the Registration Rights Agreement, it will be required to pay additional interest to the holders of the 2030 Notes.

------

**Liquidity and Capital Resources** 

We generate cash primarily from the net proceeds of the purchase of shares of our Common Stock and Series A Preferred Stock via drawdowns on our investors' capital commitments, cash flows from interest and fees earned from our investments and principal repayments and proceeds from sales of our investments. As of September 30, 2025, we had issued 134.9 million shares of our Common Stock for net proceeds of $2.0 billion, including shares issued pursuant to the DRIP. We had also issued 77,500 shares of Series A Preferred Stock for gross proceeds of $77.4 million. As of September 30, 2024, we had issued 134.8 million shares of our Common Stock for net proceeds of $2.0 billion, including shares issued pursuant to the DRIP. We had also issued 77,500 shares of Series A Preferred Stock for gross proceeds of $77.4 million.

As of September 30, 2025, we had $125.6 million of cash. For the nine months ended September 30, 2025, net cash used in operating activities was $80.7 million. The level of cash flows used in or provided by operating activities is affected by the timing of purchases, redemptions, and sales of portfolio investments. The cash flows used in operating activities for the nine months ended September 30, 2025 was primarily a result of purchases of investments of $842.5 million, offset by sales and repayments of investments of $703.4 million. As of September 30, 2024, we had $153.7 million of cash. For the nine months ended September 30, 2024, net cash used in operating activities was $64.8 million. The level of cash flows used in or provided by operating activities is affected by the timing of purchases, redemptions, and sales of portfolio investments. The cash flows used in operating activities for the nine months ended September 30, 2024 was primarily a result of purchases of investments of $785.8 million, offset by sales and repayments of investments of $532.5 million as well as cash received in the Mergers of $58.5 million.

Net cash provided by financing activities of $75.5 million during the nine months ended September 30, 2025 primarily related to repayments of secured borrowings of $29.1 million, payments on debt of $702.3 million, payments of financing costs of $5.3 million, common stockholder distributions of $101.1 million, and preferred stockholder distributions of $4.9 million partially offset by proceeds from debt of $954.3 million. Net cash provided by financing activities of $160.6 million during the nine months ended September 30, 2024 primarily related to payments on debt of $509.0 million, payments of financing costs of $4.4 million, common stockholder distributions of $77.4 million, preferred stockholder distributions of $5.6 million, and repurchases of common stock of $43.0 million partially offset by proceeds from debt of $801.7 million and proceeds from issuance of shares of common stock of $0.9 million.

We also fund a portion of our investments through borrowings from banks. Our primary use of cash will be investments in portfolio companies, payments of our expenses and payment of cash distributions to our stockholders. As of September 30, 2025, we are party to the JPM and Wells Fargo Credit Facilities, which are defined in and described in more detail in *[Note 5 - Borrowings](#ica7834b2a94a41c89a6a99cf91879fe8_52)*[.](#ica7834b2a94a41c89a6a99cf91879fe8_52) We are only allowed to borrow money such that our asset coverage, which, as defined in the 1940 Act, measures the ratio of total assets less total liabilities not represented by senior securities to total borrowings, equals at least 150% after such borrowing, with certain limited exceptions. As of September 30, 2025, our asset coverage ratio was 177%.

As of September 30, 2025, we had $513.1 million of availability under the JPM Credit Facility, JPM Revolver Facility, and Wells Fargo Credit Facility (subject to borrowing base availability). As of September 30, 2024, we had $400.8 million of availability under the JPM Credit Facility, Wells Fargo Credit Facility, FBLC JPM Credit Facility, and JPM Revolver (subject to borrowing base availability). We expect to have sufficient liquidity for our investing activities and to conduct our operations for the next 12 months.

------

**Taxation as a RIC**

We have elected to be treated as a RIC under Subchapter M of the Code. As a RIC, we generally will not be subject to corporate-level U.S. federal income taxes on any income that we distribute as dividends for U.S. federal income tax purposes to our stockholders. To maintain our qualification as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements. In addition, in order to maintain RIC tax treatment, we must distribute to our stockholders, for each tax year, an amount equal to at least 90% of our "investment company taxable income," which is generally our net ordinary income plus the excess, if any, of realized net short-term capital gain over realized net long-term capital loss and determined without regard to any deduction for dividends paid, or the annual distribution requirement. Even if we qualify as a RIC, we generally will be subject to corporate-level U.S. federal income tax on our undistributed taxable income and could be subject to state, local, and foreign taxes.

Additionally, in order to avoid the imposition of a U.S. federal excise tax, we are required to distribute, in respect of each calendar year, dividends to our stockholders of an amount at least equal to the sum of 98% of our calendar year net ordinary income (taking into account certain deferrals and elections); 98.2% of our capital gain net income (adjusted for certain ordinary losses) for the one year period ending on December 31 of such calendar year; and any net ordinary income and capital gain net income for preceding calendar years that were not distributed during such calendar years and on which we previously did not incur any U.S. federal income tax. If we fail to qualify as a RIC for any reason and become subject to U.S. federal income corporate tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions. Such a failure would have a material adverse effect on us and our stockholders. In addition, we could be required to recognize unrealized gains, incur substantial taxes and interest and make substantial distributions in order to re-qualify as a RIC. We cannot assure stockholders that they will receive any distributions.

**Distributions**

The amount of each distribution is subject to the discretion of our Board of Directors and applicable legal restrictions related to the payment of distributions. We calculate each stockholder's specific distribution amount for the quarter using record and declaration dates.

The table shows the components of the distributions we have declared and/or paid to common stockholders for the nine months ended September 30, 2025 and 2024 (dollars in thousands):

---

| | | |
|:---|:---|:---|
| | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** |
| Distributions declared | $128603 | $100499 |
| Distributions paid | $128603 | $100512 |
| Portion of distributions paid in cash | $101120 | $77434 |
| Portion of distributions paid in DRIP shares | $27483 | $23078 |

---

The table shows the components of the distributions we have declared and/or paid to preferred stockholders during the nine months ended September 30, 2025 and 2024 (dollars in thousands):

---

| | | |
|:---|:---|:---|
| | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| | **2025** | **2024** |
| Distributions declared | $4855 | $5570 |
| Distributions paid | $4855 | $5570 |
| Portion of distributions paid in cash | $4855 | $5570 |
| Portion of distributions paid in DRIP shares | $— | $— |

---

------

We may fund our cash distributions to stockholders from any sources of funds available to us, including advances from the Adviser that are subject to reimbursement, as well as offering proceeds, borrowings, net investment income from operations, capital gain proceeds from the sale of assets, and non-capital gain proceeds from the sale of assets. We have not established limits on the amount of funds we may use from available sources to make distributions. We may have distributions which could be characterized as a return of capital for tax purposes. During the nine months ended September 30, 2025 and 2024, no portion of our distributions was characterized as return of capital for tax purposes. The specific tax characteristics of our distributions made in respect of our fiscal year ending December 31, 2025 are reported to stockholders shortly after the end of the calendar year 2025 as well as in our periodic reports with the SEC. Stockholders should read any written disclosure accompanying a distribution payment carefully and should not assume that the source of any distribution is our ordinary income or gain. Moreover, you should understand that any such distributions were not based on our investment performance and can only be sustained if we achieve positive investment performance in future periods and/or our Adviser continues to make such reimbursements. There can be no assurance that we will achieve the performance necessary to sustain our distributions or that we will be able to pay distributions at all.

**Related Party Transactions and Agreements**

***Investment Advisory Agreement***

We entered into an amendment and restatement of the Investment Advisory Agreement (the "Amended and Restated Investment Advisory Agreement"), dated as of January 24, 2024, which was approved by our Board of Directors and our stockholders in connection with the consummation of the Mergers and reapproved by our Board of Directors on August 7, 2025, under which the Adviser, subject to the overall supervision of our Board of Directors manages the day-to-day operations of, and provides investment advisory services to us. Affiliates of the Adviser also provide investment advisory services to other funds that have investment mandates that are similar, in whole and in part, with ours. Affiliates of the Adviser also serve as investment adviser or sub-adviser to private funds and registered open-end funds, and as an investment adviser to a public real estate investment trust. The Adviser has adopted policies designed to manage and mitigate the conflicts of interest associated with the allocation of investment opportunities. In addition, any affiliated fund currently formed or formed in the future and managed by the Adviser or its affiliates may have overlapping investment objectives with our own and, accordingly, may invest in asset classes similar to those targeted by us. However, in certain instances due to regulatory, tax, investment, or other restrictions, certain investment opportunities may not be appropriate for either us or other funds managed by the Adviser or its affiliates.

***Administration Agreement***

On September 23, 2020, we entered into the Administration Agreement with BSP, pursuant to which BSP provides us with office facilities and administrative services. We reimburse BSP quarterly for all administrative costs and expenses incurred by our Adviser in performing our obligations under the Administration Agreement and annually for overhead expenses incurred in the course of performing our obligations under the Administration Agreement, including rent, travel and the allocable portion of the cost of our Chief Compliance Officer and Chief Financial Officer and their respective staffs, including operations and tax professionals, and administrative staff providing support services in respect of us. The Administration Agreement may be terminated by either party without penalty upon not less than 60 days' written notice to the other. For the three and nine months ended September 30, 2025, we incurred $0.9 million and $2.3 million, respectively, in administrative service fees under the administrative agreement, which are included in other general and administrative on the consolidated statements of operations in the accompanying consolidated financial statements. For the three and nine months ended September 30, 2024, we incurred $0.8 million and $2.4 million, respectively, in administrative service fees under the administrative agreement, which are included in other general and administrative on the consolidated statements of operations in the accompanying consolidated financial statements.

***Co-Investment Relief***

The 1940 Act generally prohibits BDCs from entering into negotiated co-investments with affiliates absent an order from the SEC. The SEC staff has granted relief sought in an exemptive application that expands the Company's ability to co-invest in portfolio companies with other funds managed by the Adviser or its affiliates ("Affiliated Entities"), subject to compliance with certain conditions (the "Order"), including, among others, that the Company and each Affiliated Entity participating in a transaction acquires, or disposes of, the same class of securities, at the same time, for the same price and with the same conversion, financial reporting and registration rights, and with substantially the same other terms.

------

**Borrowings** 

We are only allowed to borrow money such that our asset coverage, which, as defined in the 1940 Act, measures the ratio of total assets less total liabilities not represented by senior securities to total borrowings, equals at least 150% after such borrowing, with certain limited exceptions. As of September 30, 2025, the aggregate principal amount outstanding of the senior securities issued by us was $2.4 billion and our asset coverage was 177%. We are continually exploring forms of debt financing which could include new or expanded credit facilities or the issuance of senior securities that are debt or stock. We may use borrowed funds, known as "leverage," to make investments and to attempt to increase returns to our stockholders by reducing our overall cost of capital. We currently have credit facilities with JPMorgan and Wells Fargo.

*JPM Credit Facility* 

On October 4, 2023, we refinanced the MS Credit Facility with a $400.0 million credit facility with FBCC Jupiter Funding, LLC, a wholly-owned, consolidated special purpose financing subsidiary of us, as borrower ("Jupiter Funding"), the Adviser, as portfolio manager, the lenders party thereto, U.S. Bank National Association, as securities intermediary, U.S. Bank Trust Company, National Association as collateral administrator and collateral agent, and JPMorgan Chase Bank, National Association, as administrative agent (the "JPM Credit Facility"). The JPM Credit Facility provides for borrowings through October 4, 2026, and any amounts borrowed under the JPM Credit Facility will mature on October 4, 2027. Borrowings under the JPM Credit Facility bore interest at a benchmark rate, currently SOFR, plus a margin of 2.75% per annum, which was inclusive of an administrative agent fee. Interest is payable quarterly in arrears. Jupiter Funding was subject to a non-usage fee of 0.75%, which was inclusive of the administrative agent fee, to the extent the commitments available under the JPM Credit Facility have not been borrowed. Jupiter Funding paid an upfront fee and incurred other customary costs and expenses in connection with the JPM Credit Facility.

On December 27, 2024, Jupiter Funding entered into the First Amendment to Loan and Security Agreement (the "First Amendment"), which amends the JPM Credit Facility, by and among Jupiter Funding, as borrower, the Company, as portfolio manager, the lenders party thereto, U.S. Bank Trust Company, National Association, as collateral agent and collateral administrator, U.S. Bank National Association, as securities intermediary, and JPMorgan Chase Bank, National Association, as administrative agent.

The First Amendment, among other things, (i) extends the Reinvestment Period from October 2026 to October 2028, (ii) increases the commitment increase option from total Financing Commitments of up to $800.0 million to total Financing Commitments of up to $1,050.0 million, (iii) increases the Facility Commitments from $400.0 million to $800.0 million, (iv) extends the Scheduled Termination Date from October 2027 to October 2029, (v) reduces the Applicable Margin from 2.55% to 2.25%, and (vi) removes the administrative agent fee.

On December 27, 2024, concurrent with the closing of the First Amendment, FBLC 57th Street Funding LLC (formerly known as BDCA 57th Street Funding, LLC, "57th Street"), a wholly-owned subsidiary of the Company, merged with and into Jupiter Funding (the "Credit Facility Merger") pursuant to an Agreement and Plan of Merger, dated as of December 27, 2024 (the "Merger Agreement"), by and between FBCC Jupiter and 57th Street, with Jupiter Funding surviving the Credit Facility Merger.

Upon consummation of the Credit Facility Merger, the Amended and Restated Loan and Security Agreement, dated as of April 21, 2021, as amended, among 57th Street, as borrower, the Company, as portfolio manager, the lenders party thereto, U.S. Bank Trust Company, National Association, as collateral agent and collateral administrator, U.S. Bank National Association, as securities intermediary, and JPMorgan Chase Bank, National Association, as administrative agent, was terminated and all outstanding obligations were assumed into Jupiter Funding.

On June 30, 2025, Jupiter Funding entered into the Second Amendment to Loan and Security Agreement (the "Second Amendment"), which amends the JPM Credit Facility, by and among Jupiter Funding, as borrower, the Company, as portfolio manager, the lenders party thereto, U.S. Bank Trust Company, National Association, as collateral agent and collateral administrator, U.S. Bank National Association, as securities intermediary, and JPMorgan Chase Bank, National Association, as administrative agent.

The Second Amendment, among other things, (i) increases the Facility Commitments from $800.0 million to $1,050.0 million and (ii) reduces the Applicable Margin from 2.25% to 2.15%.

On September 9, 2025, Jupiter Funding entered into the Third Amendment to Loan and Security Agreement (the "Third Amendment"), which amends the JPM Credit Facility, by and among Jupiter Funding, as borrower, the Company, as

------

portfolio manager, the lenders party thereto, U.S. Bank Trust Company, National Association, as collateral agent and collateral administrator, U.S. Bank National Association, as securities intermediary, and JPMorgan Chase Bank, National Association, as administrative agent. The Third Amendment allows for asset-based financing investments within Jupiter Funding.

*JPM Revolver Facility*

On January 24, 2024, as a result of the consummation of the Mergers, we became party to a $505.0 million revolving credit facility with JPMorgan, as administrative agent and as collateral agent, N.A., Sumitomo Mitsui Banking Corporation, and Wells Fargo Bank, National Association as syndication agents, as well as other Lender parties (the "JPM Revolver Facility").

The JPM Revolver Facility provides for borrowings through December 8, 2027, and any amounts borrowed under the JPM Revolver Facility will mature on December 8, 2028. The JPM Revolver Facility is priced at three-month Term SOFR, plus a spread calculated based upon the composition of loans in the collateral pool, which will not exceed 1.98% per annum. Interest is payable quarterly in arrears. We will be subject to a non-usage fee of 0.38% to the extent the commitments available under the JPM Revolver Facility have not been borrowed.

On January 16, 2025, we amended and restated the JPM Revolver Facility (the "Second A&R Credit Facility"), with the lenders parties thereto, JPMorgan, as administrative agent and collateral agent, Sumitomo Mitsui Banking Corporation ("Sumitomo") and Wells Fargo Bank, National Association, as syndication agents, and JPMorgan, Sumitomo and Wells Fargo Securities, LLC as joint bookrunners and joint lead arrangers (such second amended and restated agreement, the "Second A&R Credit Facility").

The Second A&R Credit Facility, among other things, increases the aggregate amount of the lenders' commitments to $780.0 million and includes an accordion provision to permit increases to the aggregate amount to an amount of up to $1.17 billion, extends the period for borrowings under the Second A&R Credit Facility through January 16, 2029 and extends the maturity date for any amounts borrowed under the Second A&R Credit Facility to January 16, 2030. The other material terms were unchanged. We agreed to pay administrative agent fees and other customary costs and expenses incurred in connection with the Second A&R Credit Facility.

In connection with the JPM Revolver Facility, FBCC has made certain customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. The JPM Revolver Facility contains customary events of default for similar financing transactions. Upon the occurrence and during the continuation of an event of default, JPM may declare the outstanding advances and all other obligations under the JPM Revolver Facility immediately due and payable.

*Wells Fargo Credit Facility*

On January 24, 2024, as a result of the consummation of the Mergers we became party to a $300.0 million revolving credit facility with us as collateral manager, Funding I, a wholly owned, consolidated special purpose financing subsidiary, as borrower, the lenders party thereto, Wells Fargo, as administrative agent, and U.S. Bank Trust Company, National Association, as collateral agent and collateral custodian (the "Wells Fargo Credit Facility").

The Wells Fargo Credit Facility provides for borrowings through August 25, 2026, and any amounts borrowed under the Wells Fargo Credit Facility will mature on August 25, 2028. The Wells Fargo Credit Facility has an interest rate of daily simple SOFR (with a daily simple SOFR floor of zero), plus a spread of 2.75% per annum. Pursuant to an amendment to the loan and servicing agreement entered into on August 30, 2024 ("Wells Fargo Credit Facility Amendment"), the spread was reduced to 2.15% per annum from 2.75% per annum. Interest is payable quarterly in arrears. Funding I will be subject to a non-usage fee to the extent the commitments available under the Wells Fargo Credit Facility have not been borrowed. The non-usage fee per annum is 0.50% for the first 25% of the unused balance and increases to 2.00% for any remaining unused balance. Pursuant to the Wells Fargo Credit Facility Amendment, the non-usage fee per annum is now 0.50% for the first 70% of the unused balance and increases to 2.00% for any remaining unused balance.

Funding I's obligations under the Wells Fargo Credit Facility are secured by a first priority security interest in substantially all of the assets of Funding I, including its portfolio of investments and FBCC's equity interest in Funding I. The obligations of Funding I under the Wells Fargo Credit Facility are non-recourse to FBCC.

------

In connection with the Wells Fargo Credit Facility, FBCC and Funding I have made certain representations and warranties and are required to comply with various covenants and other customary requirements. The Wells Fargo Credit Facility contains customary default provisions pursuant to which the administrative agent and the lenders under the Wells Fargo Credit Facility may terminate FBCC in its capacity as collateral manager/portfolio manager under the Wells Fargo Credit Facility. Upon the occurrence of an event of default under the Wells Fargo Credit Facility, the administrative agent or the lenders may declare the outstanding advances and all other obligations under the Wells Fargo Credit Facility immediately due and payable.

*2026 Notes*

On January 24, 2024, as a result of the consummation of the Mergers, we became party to a Purchase Agreement relating to the sale of $300.0 million aggregate principal amount of 3.25% fixed rate notes due March 30, 2026 (the "Restricted 2026 Notes"). The net proceeds from the sale of the Restricted 2026 Notes were approximately $296.0 million. Pursuant to a Registration Statement on Form N-14 (File No. 333-257321), on September 22, 2021, holders of the Restricted 2026 Notes were offered the opportunity to exchange their Restricted 2026 Notes for new registered notes with substantially identical terms (the "Unrestricted 2026 Notes" and, together with the Restricted 2026 Notes, the 2026 Notes), through which holders representing 99.88% of the outstanding principal of the then Restricted 2026 Notes obtained Unrestricted 2026 Notes. The 2026 Notes are subject to customary indemnification provisions and representations, warranties and covenants. The 2026 Notes bear interest at a rate of 3.25% per year payable semi-annually.

*2029 Notes* 

On April 29, 2024, we entered into a purchase agreement in connection with the issuance and sale of $300.0 million aggregate principal amount of our 7.20% Notes due 2029 (the "2029 Notes"). The net proceeds from the sale of the 2029 Notes were approximately $293.0 million. The 2029 Notes were issued on May 6, 2024, pursuant to a third supplemental indenture. The 2029 Notes will mature on June 15, 2029, and may be redeemed in whole or in part at our option at any time or from time to time at the redemption prices set forth in the indenture governing the 2029 Notes. The 2029 Notes bear interest at a rate of 7.20% per year payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2024. The 2029 Notes are subject to customary indemnification provisions and representations, warranties and covenants. In connection with the offer and sale of the 2029 Notes, we entered into a Registration Rights Agreement, dated as of May 6, 2024. Pursuant to the Registration Rights Agreement, we are obligated to file with the SEC a registration statement relating to an offer to exchange the 2029 Notes for new notes issued by us that are registered under the Securities Act and otherwise have terms substantially identical to those of the 2029 Notes, and to use its commercially reasonable efforts to cause such registration statement to be declared effective. If we are not able to effect the exchange offer, we will be obligated to file a shelf registration statement covering the resale of the 2029 Notes and use its commercially reasonable efforts to cause such registration statement to be declared effective. If we fail to satisfy its registration obligations by certain dates specified in the Registration Rights Agreement, it will be required to pay additional interest to the holders of the 2029 Notes.

On October 22, 2024, we priced an offering of an additional $100.0 million aggregate principal amount of our 2029 Notes in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The 2029 Notes are an additional issuance of, and form a single series with, the previously issued $300.0 million aggregate principal amount of 2029 Notes on May 6, 2024, increasing the outstanding aggregate principal amount of the series to $400.0 million. The 2029 Notes will mature on June 15, 2029, and may be redeemed in whole or in part at our option at any time or from time to time at the redemption prices set forth in the Third Supplemental Indenture. The offering closed on October 29, 2024.

See *Note 5 - Borrowings* to our consolidated financial statements contained in this Quarterly Report on Form 10-Q for a more detailed discussion of our borrowings.

------

**Contractual Obligations**

The following table shows our payment obligations for repayment of debt and other contractual obligations as of September 30, 2025 (dollars in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
| |<br>**Total** | **Less than 1 year** | **1 - 3 years** | **3 - 5 years** | **More than 5 years** |
| JPM Credit Facility <sup>(1)</sup> | $1016969 | $— | $— | $1016969 | $— |
| JPM Revolver Facility <sup>(2)</sup> | 299917 |  |  | 299917 |  |
| Wells Fargo Credit Facility <sup>(3)</sup> | 300000 |  | 300000 |  |  |
| 2026 Notes | 300000 | 300000 |  |  |  |
| 2029 Notes | 398669 |  |  | 398669 |  |
| Total | $2315555 | $300000 | $300000 | $1715555 | $— |

---

—–—–—–—–—–

<sup>(1)</sup> As of September 30, 2025, we had $33.0 million in unused borrowing capacity under the JPM Credit Facility, subject to borrowing base limits.

<sup>(2)</sup> As of September 30, 2025, we had $480.1 million in unused borrowing capacity under the JPM Revolver Facility, subject to borrowing base limits.

<sup>(3)</sup> As of September 30, 2025, we had no unused borrowing capacity under the Wells Fargo Credit Facility, subject to borrowing base limits.

**Off-Balance Sheet Arrangements**

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.

**Commitments**

In the ordinary course of business, we may enter into future funding commitments. As of September 30, 2025, we had unfunded commitments on delayed draw term loans of $426.4 million, unfunded commitments on revolver term loans of $268.0 million, and unfunded commitments on term loans of $0.0 million. As of December 31, 2024, we had unfunded commitments on delayed draw term loans of $241.0 million, unfunded commitments on revolver term loans of $207.9 million, and unfunded commitments on term loans of $0.6 million. We maintain sufficient cash on hand, and available borrowings to fund such unfunded commitments. Please refer to *[Note 7 - Commitments and Contingencies](#ica7834b2a94a41c89a6a99cf91879fe8_58)* in the notes to our consolidated financial statements for further detail of these unfunded commitments.

------

**Critical Accounting Estimates**

Our discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we will evaluate our estimates, including those related to the matters described below. Actual results could differ from those estimates. Our critical accounting estimates should be read in connection with our risk factors described in Part I., Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024.

While our significant accounting policies are also described in *[Note 2 - Summary of Significant Accounting Policies](#ica7834b2a94a41c89a6a99cf91879fe8_43)* of our notes to our consolidated financial statements appearing elsewhere in this report, we believe the following accounting policies require the most significant judgment in the preparation of our consolidated financial statements.

***Valuation of Portfolio Investments***

We are required to report our investments, including those for which current market values are not readily available, at fair value in accordance with *ASC 820, Fair Value Measurements* ("ASC 820"), which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the applicable measurement date, and Rule 2a-5 under the 1940 Act.

Investments for which market quotations are readily available are typically valued at those market quotations. All investments that are not publicly traded or whose market prices are not readily available, as is the case for substantially all of our investments, are valued at fair value as determined in good faith by our Valuation Designee, subject to oversight from our Board of Directors.

As part of the valuation process, our Valuation Designee takes into account relevant factors in determining the fair value of our investments, including and in combination of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the estimated enterprise value of a portfolio company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• indicative dealer quotes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the nature and realizable value of any collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the portfolio company's ability to make payments based on its earnings and cash flow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the markets in which the portfolio company does business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a comparison of the portfolio company's securities to any similar publicly traded securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overall changes in the interest rate environment and the credit markets that may affect the price at which similar investments may be made in the future.

Our Valuation Designee, subject to oversight from our Board of Directors, undertakes a multi-step valuation process each quarter in connection with determining the fair value of our investments for which reliable market quotations are not readily available, or are available but deemed not reflective of the fair value of an investment, which includes, among other procedures, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each portfolio company or investment will be valued by our Valuation Designee, with assistance from one or more independent valuation firms engaged by our Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The independent valuation firm(s) conduct independent appraisals and make an independent assessment of the value of each investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Valuation Designee, under the supervision of our Board of Directors determines the fair value of each investment, in good faith, based on the input of independent valuation firms (to the extent applicable) and our Valuation Designee's own analysis. Our Valuation Designee also has established the Valuation Committee to assist our Valuation Designee in carrying out its designated responsibilities, subject to oversight of our Board of Directors.

------

Our Valuation Designee, subject to oversight from our Board of Directors, has and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of our portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter, and our Valuation Designee may reasonably rely on that assistance. However, our Valuation Designee, subject to oversight from our Board of Directors, is responsible for the ultimate valuation of the portfolio investments at fair value as determined in good faith pursuant to our valuation policy and a consistently applied valuation process.

Our accounting policy on the fair value of our investments is critical because the determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements express the uncertainty with respect to the possible effect of these valuations, and any change in these valuations, on the consolidated financial statements.

See *[Note 2 - Summary of Significant Accounting Policies](#ica7834b2a94a41c89a6a99cf91879fe8_43)* for a description of other accounting policies and recently issued accounting pronouncements.

------

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

The market risk associated with financial instruments and derivative financial instruments is the risk of loss from adverse changes in market prices or interest rates. We expect our market risk will arise primarily from interest rate risk relating to interest rate fluctuations. Many factors including governmental monetary and tax policies, domestic and international economic and political considerations (including global or regional conflicts) and other factors that are beyond our control contribute to interest rate risk. To meet our short and long-term liquidity requirements, we may borrow funds at a combination of fixed and variable rates. Our interest rate risk management objectives are to limit the impact of interest rate changes in earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, collars and treasury lock agreements, subject to the requirements of the 1940 Act, in order to mitigate our interest rate risk with respect to various debt instruments. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates.

As of September 30, 2025, our debt included variable-rate debt, bearing a weighted average interest rate of SOFR plus 2.12% and a fixed rate debt, bearing a weighted average interest rate of 5.50% with a total carrying value (net of deferred financing costs) of $2.3 billion. The following table quantifies the potential changes in interest income net of interest expense should base interest rates increase or decrease by the amounts below assuming that our current consolidated statement of assets and liabilities was to remain constant and no actions were taken to alter our existing interest rate sensitivity. Interest rate floors, if applicable, are not reflected in the sensitivity analysis below.

---

| | |
|:---|:---|
| **Change in Base Interest Rates** | **Estimated Change in Interest Income net of Interest Expense (in thousands)** |
| (-) 398 Basis Points | $(68107) |
| (-) 200 Basis Points | $(34256) |
| (-) 100 Basis Points | $(17128) |
| (-) 50 Basis Points | $(8564) |
| (+) 50 Basis Points | $8564 |
| (+) 100 Basis Points | $17128 |
| (+) 200 Basis Points | $34256 |

---

Because we may borrow money to make investments, our net investment income may be dependent on the difference between the rate at which we borrow funds and the rate at which we invest these funds. In periods of increasing interest rates, our cost of funds would increase, which may reduce our net investment income. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

***Valuation Risk***

We have invested, and plan to continue to invest, primarily in illiquid debt and equity securities of private companies. Most of our investments will not have a readily available market price, and our Adviser, as our Valuation Designee under Rule 2a-5, values these investments at fair value as determined in good faith subject to the oversight of our Board of Directors, based on, among other things, the input of the Adviser and independent third-party valuation firms, in accordance with our valuation policy. There is no single standard for determining fair value. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented.

***Inflation and Supply Chain Risk***

Economic activity has continued to accelerate across sectors and regions. Nevertheless, due to global supply chain issues, geopolitical events, including the outbreak of global or regional conflicts (such as those in the Middle East and Eastern Europe) a rise in energy prices and strong consumer demand as economies continue to reopen, inflation has remained elevated in the U.S. and globally. Persistent inflationary pressures could affect the profit margins of our portfolio companies.

------

**ITEM 4. CONTROLS AND PROCEDURES**

*Disclosure Controls and Procedures*

In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were (a) designed to ensure that the information we are required to disclose in our reports under the Exchange Act is recorded, processed and reported in an accurate manner and on a timely basis and the information that we are required to disclose in our Exchange Act reports is accumulated and communicated to management to permit timely decisions with respect to required disclosure and (b) operating in an effective manner.

*Change in Internal Control Over Financial Reporting*

No change occurred in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

------

**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS** 

As of September 30, 2025, we were not party to any material pending legal proceeding, and no such material proceedings are known to be contemplated. However, from time to time, we may be party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under the contracts with our portfolio companies. Third parties may also seek to impose liability on us in connection with the activities of our portfolio companies.

**ITEM 1A. RISK FACTORS**

There have been no material changes to the risk factors discussed in Part I., Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024. In addition to the other information set forth in this report, you should carefully consider the aforementioned risk factors, which could materially affect our business, financial condition, and/or operating results. These are not the only risks that we face and additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

None.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

Not applicable.

**ITEM 4. MINE SAFETY DISCLOSURES** 

Not applicable.

**ITEM 5. OTHER INFORMATION** 

***Rule 10b5-1 Trading Plans***

During the fiscal quarter ended September 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a "Rule 10b5-1 trading arrangement" or any "non-Rule 10b5-1 trading arrangement" (as such terms are defined in Item 408 of Regulation S-K).

------

**ITEM 6. EXHIBITS**

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the nine months ended September 30, 2025 (and are numbered in accordance with Item 601 of Regulation S-K).

---

| | |
|:---|:---|
| Exhibit No. | Description |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1825248/000182524825000004/fbcc-certificateofincorpor.htm)</u> | <u>[Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company's Annual Report on Form 10-K filed on March 14, 2025).](https://www.sec.gov/Archives/edgar/data/1825248/000182524825000004/fbcc-certificateofincorpor.htm)</u> |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/0001825248/000110465921109383/tm2125906d1_ex3-1.htm)</u> | <u>[Certificate of Designation of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on August 25, 2021).](https://www.sec.gov/Archives/edgar/data/0001825248/000110465921109383/tm2125906d1_ex3-1.htm)</u> |
| <u>[3.3](https://www.sec.gov/Archives/edgar/data/1825248/000182524822000004/franklinbspcapitalcorp-ex3.htm)</u> | <u>[Amended and Restated Bylaws (incorporated by reference to Exhibit 3.3 to the Company's Annual Report on Form 10-K filed on March 17, 2022).](https://www.sec.gov/Archives/edgar/data/1825248/000182524822000004/franklinbspcapitalcorp-ex3.htm)</u> |
| <u>4.1</u> | <u>Fourth Supplemental Indenture, dated as of October 2, 2025, relating to the 6.000% Notes due 2030, by and between the Company and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K, filed on October 3, 2025).</u> |
| <u>4.2</u> | <u>Form of 6.000% Notes due 2030 (included in, and incorporated by reference to, Exhibit 4.2 to the Company's Current Report on Form 8-K, filed on October 3, 2025).</u> |
| <u>4.3</u> | <u>[Registration Rights Agreement, dated as of October 2, 2025, by and among the Company, J.P. Morgan Securities LLC, BofA Securities, Inc](https://www.sec.gov/Archives/edgar/data/1825248/000121390025096116/ea0259788-8k_franklin.htm)[, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC, as the representatives of the initial purchasers (incorporated by reference to Exhibit 4.](https://www.sec.gov/Archives/edgar/data/1825248/000121390025096116/ea0259788-8k_franklin.htm)[4](https://www.sec.gov/Archives/edgar/data/1825248/000121390025096116/ea0259788-8k_franklin.htm)[to the Company's Current Report on Form 8-K, filed on October 3, 2025).](https://www.sec.gov/Archives/edgar/data/1825248/000121390025096116/ea0259788-8k_franklin.htm)</u> |
| <u>10.1</u> | <u>[Third Amendment to Loan and Security Agreement, dated as of September 9, 2025, among FBCC Jupiter, as borrower, the Company, as portfolio manager, the lenders party thereto, U.S. Bank Trust Company, National Association as collateral agent and collateral administrator, U.S. Bank National Association, as securities intermediary, and JPMorgan Chase Bank, National Association, as administrative agent.](fbcc-93025xexx101.htm)</u> |
| <u>[31.1](fbcc-33125xexx311.htm)</u> | <u>[Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14 (a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](fbcc-93025xexx311.htm)[.](fbcc-93025xexx311.htm)</u> |
| <u>[31.2](fbcc-33125xexx312.htm)</u> | <u>[Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14 (a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](fbcc-93025xexx312.htm)[.](fbcc-93025xexx312.htm)</u> |
| <u>[32](fbcc33125-exx32.htm)</u> | <u>[Certification of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](fbcc93025-exx32.htm)[.](fbcc93025-exx32.htm)</u> |
| <u>101.INS</u> | <u>XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the XBRL document.</u> |
| <u>101.SCH</u> | <u>Inline XBRL Taxonomy Extension Schema Document.</u> |
| <u>101.CAL</u> | <u>Inline XBRL Taxonomy Calculation Linkbase Document.</u> |
| <u>101.DEF</u> | <u>Inline XBRL Taxonomy Extension Definition Linkbase Document.</u> |
| <u>101.LAB</u> | <u>Inline XBRL Taxonomy Label Linkbase Document.</u> |
| <u>101.PRE</u> | <u>Inline XBRL Taxonomy Presentation Linkbase Document.</u> |
| <u>104</u> | <u>Cover Page Interactive Data File (embedded within the Inline XBRL document).</u> |

---

t

------

**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:

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| <u>/s/ Richard J. Byrne</u><br>Richard J. Byrne | Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer) | November 12, 2025 |
| <u>/s/ Nina Kang Baryski</u><br>Nina Kang Baryski | Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) | November 12, 2025 |

---

## Exhibit 10.1

***Execution Version***

As Amended through the Third Amendment dated September 9, 2025

LOAN AND SECURITY AGREEMENT

dated as of

October 4, 2023

among

FBCC JUPITER FUNDING, LLC

The Lenders Party Hereto

The Collateral Administrator, Collateral Agent and Securities Intermediary Party Hereto

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Administrative Agent

and

FRANKLIN BSP CAPITAL CORPORATION,<br>as Portfolio Manager

67958248. v2

------

**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | <u>Page</u> |
| ARTICLE I | ARTICLE I | ARTICLE I |
| THE PORTFOLIO INVESTMENTS | THE PORTFOLIO INVESTMENTS | THE PORTFOLIO INVESTMENTS |
| SECTION 1.01. | Purchases of Portfolio Investments............................................................... | 31 |
| SECTION 1.02. | Procedures for Purchases and Related Advances.......................................... | 31 |
| SECTION 1.03. | Conditions to Purchases................................................................................ | 32 |
| SECTION 1.04. | Sales of Portfolio Investments...................................................................... | 33 |
| SECTION 1.05. | Certain Assumptions relating to Portfolio Investments................................ | 35 |
| SECTION 1.06. | Additional Equity Contributions................................................................... | 35 |
| SECTION 1.07. | Currency Equivalents.................................................................................... | 35 |
| SECTION 1.08. | [Reserved]..................................................................................................... | 36 |
| ARTICLE II | ARTICLE II | ARTICLE II |
| THE ADVANCES | THE ADVANCES | THE ADVANCES |
| SECTION 2.01. | Financing Commitments............................................................................... | 36 |
| SECTION 2.02. | [Reserved]..................................................................................................... | 36 |
| SECTION 2.03. | Advances; Use of Proceeds........................................................................... | 36 |
| SECTION 2.04. | Conditions to Effective Date......................................................................... | 37 |
| SECTION 2.05. | Conditions to Advances................................................................................ | 39 |
| SECTION 2.06. | [Reserved]..................................................................................................... | 40 |
| ARTICLE III | ARTICLE III | ARTICLE III |
| ADDITIONAL TERMS APPLICABLE TO THE ADVANCES | ADDITIONAL TERMS APPLICABLE TO THE ADVANCES | ADDITIONAL TERMS APPLICABLE TO THE ADVANCES |
| SECTION 3.01. | The Advances.............................................................................................. | 40 |
| SECTION 3.02. | Interest Rate Unascertainable, Inadequate or Unfair................................... | 43 |
| SECTION 3.03. | Taxes............................................................................................................ | 45 |
| ARTICLE IV | ARTICLE IV | ARTICLE IV |
| COLLECTIONS AND PAYMENTS | COLLECTIONS AND PAYMENTS | COLLECTIONS AND PAYMENTS |
| SECTION 4.01. | Interest Proceeds........................................................................................... | 48 |
| SECTION 4.02. | Principal Proceeds........................................................................................ | 49 |
| SECTION 4.03. | Principal and Interest Payments; Prepayments; Commitment Fee............... | 50 |
| SECTION 4.04. | MV Cure Account......................................................................................... | 51 |
| SECTION 4.05. | Priority of Payments...................................................................................... | 51 |
| SECTION 4.06. | Payments Generally...................................................................................... | 52 |
| SECTION 4.07. | Termination or Reduction of Financing Commitments................................ | 53 |
| ARTICLE V | ARTICLE V | ARTICLE V |
| THE PORTFOLIO MANAGER | THE PORTFOLIO MANAGER | THE PORTFOLIO MANAGER |
| SECTION 5.01. | Appointment and Duties of the Portfolio Manager....................................... | 54 |
| SECTION 5.02 | Portfolio Manager Representations as to Eligibility Criteria; Etc................ | 54 |
| SECTION 5.03. | Indemnification.............................................................................................. | 54 |

---

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 2 -

---

| | | |
|:---|:---|:---|
| ARTICLE VI | ARTICLE VI | ARTICLE VI |
| REPRESENTATIONS, WARRANTIES AND COVENANTS | REPRESENTATIONS, WARRANTIES AND COVENANTS | REPRESENTATIONS, WARRANTIES AND COVENANTS |
| SECTION 6.01. | Representations and Warranties.................................................................... | 55 |
| SECTION 6.02. | Covenants of the Company and the Portfolio Manager................................ | 58 |
| SECTION 6.03 | Amendments of Portfolio Investments, Etc.................................................. | 64 |
| ARTICLE VII | ARTICLE VII | ARTICLE VII |
| REPRESENTATIONS, WARRANTIES AND COVENANTS | REPRESENTATIONS, WARRANTIES AND COVENANTS | REPRESENTATIONS, WARRANTIES AND COVENANTS |
| SECTION 7.01. | Events of Default.......................................................................................... | 65 |
| ARTICLE VIII | ARTICLE VIII | ARTICLE VIII |
| COLLATERAL ACCOUNTS; COLLATERAL SECURITY | COLLATERAL ACCOUNTS; COLLATERAL SECURITY | COLLATERAL ACCOUNTS; COLLATERAL SECURITY |
| SECTION 8.01. | The Collateral Accounts; Agreement as to Control...................................... | 67 |
| SECTION 8.02. | Collateral Security; Pledge; Delivery............................................................ | 68 |
| ARTICLE IX | ARTICLE IX | ARTICLE IX |
| THE AGENTS | THE AGENTS | THE AGENTS |
| SECTION 9.01. | Appointment of Administrative Agent and Collateral Agent....................... | 71 |
| SECTION 9.02. | Additional Provisions Relating to the Collateral Agent and the Collateral Administrator................................................................................................. | 76 |
| ARTICLE X | ARTICLE X | ARTICLE X |
| MISCELLANEOUS | MISCELLANEOUS | MISCELLANEOUS |
| SECTION 10.01. | Non-Petition; Limited Recourse................................................................... | 78 |
| SECTION 10.02. | Notices.......................................................................................................... | 79 |
| SECTION 10.03. | No Waiver..................................................................................................... | 79 |
| SECTION 10.04. | Expenses; Indemnity; Damage Waiver; Right of Setoff............................... | 79 |
| SECTION 10.05. | Amendments................................................................................................. | 80 |
| SECTION 10.06. | Successors; Assignments.............................................................................. | 81 |
| SECTION 10.07. | Governing Law; Submission to Jurisdiction; Etc.......................................... | 82 |
| SECTION 10.08. | Interest Rate Limitation................................................................................ | 82 |
| SECTION 10.09. | PATRIOT Act............................................................................................... | 82 |
| SECTION 10.10. | Counterparts................................................................................................. | 82 |
| SECTION 10.11. | Headings....................................................................................................... | 83 |
| SECTION 10.12. | Confidentiality............................................................................................... | 83 |
| SECTION 10.13. | Acknowledgement and Consent to Bail-In of EEA Financial Institutions... | 83 |

---

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 3 -

<u>Schedules</u>

Schedule 1&nbsp;&nbsp;&nbsp;&nbsp;Transaction Schedule

Schedule 2&nbsp;&nbsp;&nbsp;&nbsp;Contents of Notice of Acquisition

Schedule 3&nbsp;&nbsp;&nbsp;&nbsp;Eligibility Criteria

Schedule 4&nbsp;&nbsp;&nbsp;&nbsp;Concentration Limitations

Schedule 5&nbsp;&nbsp;&nbsp;&nbsp;Initial Portfolio Investments

Schedule 6&nbsp;&nbsp;&nbsp;&nbsp;Moody's Industry Classifications

Schedule 7&nbsp;&nbsp;&nbsp;&nbsp;Ineligible Persons

Schedule 8&nbsp;&nbsp;&nbsp;&nbsp;Partial PIK Portfolio Investment – Notice Form

<u>Exhibits</u>

Exhibit A&nbsp;&nbsp;&nbsp;&nbsp;Form of Request for Advance

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 4 -

**LOAN AND SECURITY AGREEMENT** dated as of October 4, 2023 (this "<u>Agreement</u>") among FBCC JUPITER FUNDING, LLC, as borrower (the "<u>Company</u>"); FRANKLIN BSP CAPITAL CORPORATION, as portfolio manager (in such capacity, the "<u>Portfolio Manager</u>"); the Lenders party hereto; U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, in its capacities as collateral agent (in such capacity, the "<u>Collateral Agent</u>") and collateral administrator (in such capacity, the "<u>Collateral Administrator</u>"); U.S. BANK NATIONAL ASSOCIATION, in its capacity as securities intermediary (in such capacity, the "<u>Securities Intermediary</u>"); and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders hereunder (in such capacity, the "<u>Administrative Agent</u>").

The Portfolio Manager and the Company wish for the Company to acquire and finance certain loans and other corporate debt securities (the "<u>Portfolio Investments</u>"), all on and subject to the terms and conditions set forth herein.

Furthermore, the Company intends to enter into a Master Participation Agreement, dated as of October 4, 2023 (the "<u>Participation Agreement</u>") by and between the Company and FBCC Lending I, LLC (in such capacity, the "<u>MPA Seller</u>"), pursuant to which the Company shall acquire Portfolio Investments on the Effective Date.

Furthermore, the Company intends to enter into a Sale and Contribution Agreement, dated as of October 4, 2023 (the "<u>Sale Agreement</u>") by and between the Company and the Parent (in such capacity, the "<u>Seller</u>"), pursuant to which the Company shall from time to time acquire Portfolio Investments from the Parent.

Furthermore, FBLC 57th Street Funding LLC (formerly known as BDCA 57th Street Funding LLC) (the "<u>Rollover Company</u>") has merged with and into the Company on December 27, 2024 and the Company is the surviving company.

Furthermore, the Rollover Company is party to that certain Amended and Restated Loan and Security Agreement, dated as of April 12, 2021, by and among the Rollover Company, Franklin BSP Lending Corporation (formerly known as Business Development Company of America), as portfolio manager, the lenders party thereto (the "<u>Rollover Lenders</u>"), U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), in its capacities as collateral agent and collateral administrator, U.S. Bank National Association, in its capacity as securities intermediary and JPMorgan Chase Bank, National Association, as administrative agent for the lenders thereunder (as amended by the First Amendment to the Amended and Restated Loan and Security Agreement dated as of December 9, 2022, as amended by the Second Amendment to the Amended and Restated Loan and Security Agreement dated as of September 15, 2023, the "<u>Rollover Facility</u>").

Furthermore, the Rollover Lenders, the Rollover Company and the parties hereto, subject to the terms and conditions of the First Amendment to Loan and Security Agreement, dated as of the First Amendment Date (the "<u>First Amendment</u>"), by and among the Company, the Portfolio Manager, the Lenders party thereto, the Collateral Agent, the Collateral Administrator, the Securities Intermediary and the Administrative Agent, desire to terminate the Rollover Facility on a "cashless roll" basis in an aggregate amount equal to such Lender's Advances (as defined in the Rollover Facility) outstanding immediately prior to the First Amendment Date, accrued and unpaid interest thereon and all fees and other amounts due and payable by the Rollover Company to the Rollover Lenders in connection with the Rollover Facility on or prior to the First Amendment Date.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 5 -

On and subject to the terms and conditions set forth herein and in the First Amendment, JPMorgan Chase Bank, National Association ("<u>JPMCB</u>") and its respective successors and permitted assigns (together with JPMCB, the "<u>Lenders</u>") have agreed to make advances to the Company ("<u>Advances</u>") hereunder to the extent specified on the transaction schedule attached as Schedule 1 hereto (the "<u>Transaction Schedule</u>").

Accordingly, the parties hereto agree as follows:

**Certain Defined Terms**

"<u>ABF Portfolio Investment</u>" means any Loan or debt security that (i) is underwritten primarily on the appraised value of underlying assets securing such Loan or debt security, (ii) is governed by a borrowing base or other covenant based on the value of such underlying assets securing such Loan or debt security, (iii) is secured by a validly perfected and first priority security interest in such underlying assets under Applicable Law (subject to liens permitted under the related underlying instruments that are reasonable for similar Loans or debt securities, and Liens accorded priority in favor of any Governmental Authority), (iv) does not permit the material modification of valuation criteria, metrics or methodology of such underlying assets without prior consent of the administrative agent under the related underlying instrument, and (v) is designated by the Administrative Agent as an ABF Portfolio Investment in its commercially reasonable discretion.

"<u>Account Control Agreement</u>" means the Securities Account Control Agreement, dated as of October 4, 2023, among the Company, the Administrative Agent, the Collateral Agent and the Securities Intermediary, as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms hereof and thereof.

"<u>Additional Distribution Date</u>" has the meaning set forth in Section 4.05.

"<u>Adjusted Applicable Margin</u>" means the stated Applicable Margin for Advances set forth on the Transaction Schedule plus 2% per annum.

"<u>Administrative Agent</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Administrative Agency Fee</u>" has the meaning set forth in the Effective Date Letter.

"<u>Advances</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Adverse Proceeding</u>" means any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of the Company) at law or in equity, or before or by any Governmental Authority, whether pending, active or, to the Company's or the Portfolio Manager's knowledge, threatened against or affecting the Company or the Portfolio Manager or their respective property that would reasonably be expected to result in a Material Adverse Effect.

"<u>Affiliate</u>" means, with respect to any Person, any Person directly or indirectly controlling, controlled by, or under common control with, such former Person but which shall not include (a) the obligors under any Portfolio Investment or any Portfolio Company of the Portfolio Manager or (b) solely with respect to determining the Concentration Limitation Excess and Concentration Limitations, any Affiliate relationship which may exist solely as a result of direct or indirect ownership of, or control by, a common financial sponsor. For the purposes of this definition, control of a Person shall mean the power, direct or indirect, (i) to vote more than 50% of the securities having ordinary voting power for the election of directors of any such Person or (ii) to direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

"<u>Agent</u>" has the meaning set forth in Section 9.01.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 6 -

"<u>Agent Business Day</u>" means any day on which commercial banks settle payments in each of New York City and the city in which the corporate trust office of the Collateral Agent is located (which shall initially be Boston, Massachusetts).

"<u>Agreement</u>" has the meaning set forth in the introductory paragraph hereto.

"<u>Agreement Party</u>" has the meaning set forth in Article VII.

"<u>Amendment</u>" has the meaning set forth in Section 6.03.

"<u>Anti-Corruption Laws</u>" means all laws, rules, and regulations of any jurisdiction applicable to the Company from time to time concerning or relating to bribery or corruption.

"<u>Applicable Law</u>" means, for any Person, all existing and future laws, rules, regulations (including temporary and final income tax regulations), statutes, treaties, codes, ordinances, permits, certificates, orders, licenses of and interpretations by any Governmental Authority applicable to such Person and applicable judgments, decrees, injunctions, writs, awards or orders of any court, arbitrator or other administrative, judicial, or quasi-judicial tribunal or agency of competent jurisdiction.

"<u>AUD</u>" means Australian dollars.

"<u>AUD Screen Rate</u>" means, for each Calculation Period relating to an Advance in AUD, the average bid reference rate administered by the Australian Financial Markets Association (or any other Person that takes over the administration of such rate) for AUD bills of exchange with a tenor equal to three months as displayed on page BBSY of the Reuters screen that displays such rate (or, in the event such rate does not appear on such Reuters page, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate as shall be selected by the Administrative Agent from time to time in its reasonable discretion) at or about 11:00 a.m. (Sydney, Australia time) on the first day of such Calculation Period. If such rate is not available at such time for any reason, then the AUD Screen Rate for such Calculation Period shall be deemed to be the rate (which shall not be less than zero) at which AUD deposits in an amount corresponding to the amount of such Advance and for the applicable maturity are offered in the Sydney interbank market in immediately available funds at such time (as determined by the Administrative Agent in its commercially reasonable discretion). Notwithstanding anything in the foregoing to the contrary, if the AUD Screen Rate as calculated for any purpose under this Agreement is below zero percent, the AUD Screen Rate will be deemed to be zero percent for such purpose until such time as it exceeds zero percent again.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark for any Currency, as applicable, any tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of a Calculation Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Calculation Period" pursuant to clause (f) of Section 3.02.

"<u>Base Rate</u>" means, for any day, (i) with respect to USD denominated Advances, a rate *per annum* equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day *plus* 0.5%, (ii) with respect to CAD denominated Advances, the Canadian Prime Rate and (iii) with respect to any AUD, Euro or GBP denominated Advances, the annual rate of interest announced from time to time by the Administrative Agent (or an affiliate thereof) (in consultation with the Company) as being its reference rate then in effect for determining interest rates on commercial loans made by it in Australia (in the case of Advances denominated in AUD), the United Kingdom (with respect to Advances denominated in GBP) or the Euro Zone (with respect to Advances denominated in Euros). Any change in the applicable Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate, the Canadian Prime Rate or a rate specified in clause (iii) above shall be effective from and including the effective date of such change. In the event that any applicable Base Rate

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 7 -

is below zero percent at any time during the term of this Agreement, it shall be deemed to be zero percent until it exceeds zero percent again.

"<u>Benchmark</u>" means, with respect to Advances in each Currency, initially the applicable Reference Rate for such Currency; *provided* that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to such applicable Reference Rate or the then-current Benchmark for such Currency, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to clause (b) of Section 3.02.

"<u>Benchmark Replacement</u>" means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date; *provided* that, in the case of any Advance denominated in a Permitted Non-USD Currency, "Benchmark Replacement" shall mean the alternative set forth in (2) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of USD denominated Advances, the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for syndicated credit facilities denominated in the applicable Currency at such time and (b) the related Benchmark Replacement Adjustment.

If the Benchmark Replacement as determined pursuant to clause (1) or (2) above would be less than 0% per annum, the Benchmark Replacement will be deemed to be 0% per annum for the purposes of this Agreement and the other Loan Documents.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Calculation Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent in consultation with the Company for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date and/or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for syndicated credit facilities denominated in the applicable Currency.

"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Base Rate," the definition of "Business Day," the definition of "Calculation Period," timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides in its reasonable discretion in consultation with the Company may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 8 -

the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"<u>Benchmark Replacement Date</u>" means, with respect to any Benchmark, the earlier to occur of the following events with respect to such then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of clause (1) or (2) of the definition of "Benchmark Transition Event," the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of clause (3) of the definition of "Benchmark Transition Event," the date of the public statement or publication of information referenced therein.

For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the "Benchmark Replacement Date" will be deemed to have occurred with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means, with respect to any Benchmark, the occurrence of one or more of the following events with respect to such then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the NYFRB, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), in each case, which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer, or as of a specified future date will no longer be, representative.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 9 -

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Unavailability Period</u>" means, with respect to any Benchmark, the period (if any) (x) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 3.02 and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 3.02.

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Board</u>" means the Board of Governors of the Federal Reserve System of the United States of America.

"<u>Borrowing Base Test</u>" means a test that will be satisfied on any date of determination if the following is true:

![image_0.jpg](image_0.jpg)

Where:

*AR* = 60%.

"<u>Business Day</u>" means any day (other than a Saturday or Sunday) on which commercial banks are open in each of New York City and the city in which the corporate trust office of the Collateral Agent is located; *provided* that (i) with respect to any SONIA related provisions herein or the payment, calculation or conversion of amounts denominated in GBP, Business Day shall be deemed to exclude any day on which banks are required or authorized to be closed in London, England, (ii) with respect to any EURIBOR related provisions herein or the payment, calculation or conversion of amounts denominated in Euros, Business Day shall be deemed to exclude any day on which banks are required or authorized to be closed in London, England or which is not a TARGET2 Settlement Day, (iii) with respect to any CORRA related provisions herein or the payment, calculation or conversion of amounts denominated in CAD, Business Day shall be deemed to exclude any day on which banks are required or authorized to be closed in Toronto, Canada, and (iv) with respect to any AUD Screen Rate related provisions herein or the payment, calculation or conversion of amounts denominated in AUD, Business Day shall be deemed to exclude any day on which banks are required or authorized to be closed in Sydney, Australia.

"<u>CAD</u>" means Canadian dollars.

"<u>Calculation Period</u>" means the quarterly period from and including the date on which the first Advance is made hereunder to but excluding the first Calculation Period Start Date following the date of such Advance and each successive quarterly period from and including a Calculation Period Start Date to but excluding the immediately succeeding Calculation Period Start Date (or, in the case of the last Calculation Period, if the last Calculation Period does not end on the last calendar day of March, June,

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 10 -

September or December, the period from and including the related Calculation Period Start Date to but excluding the Maturity Date).

"<u>Calculation Period Start Date</u>" means the first calendar day of January, April, July and October of each year (or, if any such date is not a Business Day, the immediately succeeding Business Day), commencing in October 2023.

"<u>Canadian Prime Rate</u>" means, on any day, the rate determined by the Administrative Agent to be the higher of (i) the rate equal to the PRIMCAN Index rate published by Bloomberg Financial Markets Commodities News (or any successor to or substitute for such service, providing rate quotations comparable to those currently provided by such service, as determined by the Administrative Agent from time to time) at 10:15 a.m. Toronto time on such day and (ii) the Term CORRA, plus 1% per annum. Any change in the Canadian Prime Rate due to a change in the PRIMCAN Index or the Term CORRA shall be effective from and including the effective date of such change in the PRIMCAN Index or Term CORRA, respectively.

"<u>Cash Equivalents</u>" means, any of the following: (i) marketable securities (a) issued or directly and unconditionally guaranteed as to interest and principal by the United States Government or (b) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case maturing within one year after such date; (ii) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one year after such date and having, at the time of the acquisition thereof, a rating of at least "A-1" from S&P or at least "P-1" from Moody's; (iii) commercial paper maturing no more than three months from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least "A-1" from S&P or at least "P-1" from Moody's; (iv) certificates of deposit or bankers' acceptances maturing within three months after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia that (a) is at least "adequately capitalized" (as defined in the regulations of its primary Federal banking regulator) and (b) has Tier 1 capital (as defined in such regulations) of not less than U.S.$1,000,000,000; (v) shares of any money market mutual fund that (a) has substantially all of its assets invested continuously in the types of investments referred to in clauses (i) and (ii) above, (b) has net assets of not less than U.S.$5,000,000,000, and (c) has the highest rating obtainable from either S&P or Moody's; and (vi) other similar instruments to the extent Permitted Non-USD currencies are invested therein. Subject to the foregoing, Cash Equivalents may include investments in which the Collateral Agent or its Affiliates provide services and receive compensation.

"<u>Change in Law</u>" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; *provided* that all requests, rules, guidelines or directives concerning liquidity and capital adequacy issued by any United States regulatory authority (i) under or in connection with the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act and (ii) in connection with the implementation of the recommendations of the Bank for International Settlements or the Basel Committee on Banking Regulations and Supervisory Practices (or any successor or similar authority) shall be deemed to have occurred after the date of this Agreement for purposes of this definition, regardless of the date adopted, issued, promulgated or implemented.

"<u>Change of Control</u>" means an event or series of events by which (A) the Parent or its Affiliates, collectively, (i) shall cease to possess, directly or indirectly, the right to elect or appoint (through contract, ownership of voting securities, or otherwise) managers that at all times have a majority of the votes of the board of managers (or similar governing body) of the Company or to direct the management policies and decisions of the Company or (ii) shall cease, directly or indirectly, to own and control legally and beneficially all of the equity interests of the Company, (B) Franklin BSP Capital Adviser L.L.C. or its Affiliates shall cease to be the investment advisor of the Parent or (C) Benefit Street Partners L.L.C. or its Affiliates, collectively, (i) shall cease to possess, directly or indirectly, the right to

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 11 -

elect or appoint (through contract, ownership of voting securities, or otherwise) managers that at all times have a majority of the votes of the board of managers (or similar governing body) of Franklin BSP Capital Adviser L.L.C. or to direct the management policies and decisions of Franklin BSP Capital Adviser L.L.C. or (ii) shall cease, directly or indirectly, to own and control legally and beneficially all of the equity interests of Franklin BSP Capital Adviser L.L.C.

"<u>Charges</u>" has the meaning set forth in Section 10.08.

"<u>CME Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited as administrator of the forward-looking term SOFR (or a successor administrator).

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

"<u>Collateral</u>" has the meaning set forth in Section 8.02(a).

"<u>Collateral Accounts</u>" has the meaning set forth in Section 8.01(a).

"<u>Collateral Administrator</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Collateral Agent</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Collateral Principal Amount</u>" means on any date of determination (A) the aggregate principal balance of the Portfolio, excluding the unfunded balance on any Delayed Funding Term Loan, as of such date *plus* (B) the amounts on deposit in the Collateral Accounts (including cash and Eligible Investments) representing Principal Proceeds as of such date and the amounts on deposit in the Unfunded Exposure Account (including cash and Eligible Investments) as of such date *minus* (C) the aggregate principal balance of all Ineligible Investments as of such date.

"<u>Collection Account</u>" means the Interest Collection Account and the Principal Collection Account, collectively.

"<u>Company</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Competitor</u>" has the meaning set forth in the Syndication Letter.

"<u>Concentration Limitation Excess</u>" means, on any date of determination, without duplication, all or the portion of the principal amount of any Portfolio Investment (other than any Ineligible Investment) that exceeds any Concentration Limitation as of such date; *provided* that the Portfolio Manager shall select in its sole discretion which Portfolio Investment(s) constitute part of the Concentration Limitation Excess; *provided further* that with respect to any Delayed Funding Term Loan, the Portfolio Manager shall select any term Portfolio Investment from the same obligor and/or any funded portion of the aggregate commitment amount of such Delayed Funding Term Loan before selecting any unfunded portion of such aggregate commitment amount; *provided further* that if the Portfolio Manager does not so select any Portfolio Investment(s), the applicable portion of the Portfolio Investment(s) determined by the Administrative Agent shall make up the Concentration Limitation Excess.

"<u>Concentration Limitations</u>" has the meaning set forth in Schedule 4.

"<u>CORRA</u>" means the Canadian Overnight Repo Rate Average administered and published by the Bank of Canada (or any successor administrator).

"<u>Corresponding Tenor</u>" means, with respect to any Available Tenor, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 12 -

"<u>Currency</u>" means USD and each Permitted Non-USD Currency.

"<u>Currency Shortfall</u>" has the meaning specified in <u>Section 4.06(b)</u>.

"<u>Custodial Account</u>" means the account(s) established by the Securities Intermediary and set forth on the Transaction Schedule and any successor accounts established in connection with the resignation or removal of the Securities Intermediary.

"<u>Daily Simple SOFR</u>" means, for any day, a rate per annum equal to SOFR for the day that is five (5) Business Days prior to (i) if such SOFR Rate Day is a Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a Business Day, the Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator's Website. Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Company.

"<u>Daily Simple SONIA</u>" means, for each, with respect to any Advance denominated in GBP, an interest rate per annum equal to the greater of (a) SONIA for the day that is five Business Days prior to (i) if such SONIA Interest Day is a Business Day, such SONIA Interest Day or (ii) if such SONIA Interest Day is not a Business Day, the Business Day immediately preceding such SONIA Interest Day and (b) 0%. Any change in Daily Simple SONIA due to a change in SONIA shall be effective from and including the effective date of such change in SONIA without notice to the Company.

"<u>Default</u>" has the meaning set forth in Section 1.03.

"<u>Delayed Funding Term Loan</u>" means any Loan that (a) requires the holder thereof to make one or more future advances to the obligor under the underlying instruments relating thereto, (b) specifies a maximum amount that can be borrowed on or prior to one or more fixed dates, and (c) does not permit the re-borrowing of any amount previously repaid by the obligor thereunder; but, for the avoidance of doubt, any such Loan will be a Delayed Funding Term Loan only until all commitments by the holders thereof to make such future advances to the obligor thereon expire or are terminated or reduced to zero.

"<u>Deliver</u>" (and its correlative forms) means the taking of the following steps by the Company or the Portfolio Manager:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;except as provided in clauses (3) or (4) below, in the case of Portfolio Investments and Eligible Investments and amounts on deposit in the Collateral Accounts, by (x) causing the Securities Intermediary to indicate by book entry that a financial asset comprised thereof has been credited to the applicable Collateral Account and (y) causing the Securities Intermediary to agree, pursuant to the Account Control Agreement, that it will comply with entitlement orders originated by the Collateral Agent with respect to each such security entitlement without further consent by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;in the case of each general intangible, by notifying the obligor thereunder of the security interest of the Collateral Agent (except to the extent that the requirement for consent by any person to the pledge hereunder or transfer thereof to the Collateral Agent or the Administrative Agent is rendered ineffective under Section 9-406 of the UCC, no such requirement for consent exists in the underlying documents or such consent has otherwise been obtained);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;in the case of Portfolio Investments consisting of money or instruments (the "<u>Possessory Collateral</u>") that do not constitute a financial asset forming the basis of a security entitlement delivered to the Collateral Agent pursuant to clause (1) above, by causing (x) the Collateral Agent to obtain possession of such Possessory Collateral in the State of New York or

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 13 -

another state of the United States that has adopted Articles 8 and 9 of the Uniform Commercial Code, or (y) a Person other than the Company and a securities intermediary (A)(I) to obtain possession of such Possessory Collateral in a state specified in clause (x) above, and (II) to then authenticate a record acknowledging that it holds possession of such Possessory Collateral for the benefit of the Collateral Agent or (B)(I) to authenticate a record acknowledging that it will take possession of such Possessory Collateral for the benefit of the Collateral Agent and (II) to then acquire possession of such Possessory Collateral in a state specified in clause (x) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;in the case of any account which constitutes a "deposit account" under Article 9 of the UCC, by causing the Securities Intermediary to continuously identify in its books and records the security interest of the Collateral Agent in such account and, except as may be expressly provided herein to the contrary, establishing dominion and control over such account in favor of the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;in all cases, by filing or causing the filing of a financing statement with respect to such Collateral with the Delaware Secretary of State; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;in all cases by otherwise ensuring that all steps, if any, required under applicable Law or reasonably requested by the Administrative Agent to ensure that this Agreement creates a valid, first priority Lien (subject only to Permitted Liens) on such Collateral in favor of the Collateral Agent, shall have been taken, and that such Lien shall have been perfected by filing and, to the extent applicable, possession or control.

Notwithstanding clauses (1) and (3) above, the Company or the Portfolio Manager on its behalf shall ensure that all Portfolio Investments denominated in a Permitted Non-USD Currency and all proceeds thereof shall be deposited in or credited to the applicable Permitted Non-USD Currency Account; *provided* that it is understood and agreed that, notwithstanding anything to the contrary herein, the Permitted Non-USD Currency Accounts in respect of any Permitted Non-USD Currency shall not be available for the receipt of cash and Portfolio Investments until such time as the Administrative Agent confirms in writing (which may be by email) to the Company, the Portfolio Manager, the Collateral Agent and the Securities Intermediary that the Permitted Non-USD Currency Account Opening Requirements with respect to the applicable Permitted Non-USD Currency Account are satisfied.

"<u>Designated Email Notification Address</u>" means m.frick@benefitstreetpartners.com; *provided* that, so long as no Event of Default shall have occurred and be continuing and no Market Value Event shall have occurred, the Company may, upon at least five (5) Business Days' (or such shorter period as the Administrative Agent shall agree in its sole discretion) written notice to the Administrative Agent, the Collateral Administrator and the Collateral Agent, designate any other email address as the Designated Email Notification Address.

"<u>Designated Independent Dealer</u>" means J.P. Morgan Securities LLC; *provided* that, so long as no Market Value Event shall have occurred and no Event of Default shall have occurred and be continuing, the Portfolio Manager may, upon at least five (5) Business Days' (or such shorter period as the Administrative Agent shall agree in its sole discretion) written notice to the Administrative Agent, the Collateral Administrator and the Collateral Agent, designate another Independent Dealer as the Designated Independent Dealer.

"<u>Dollar Equivalent</u>" means, with respect to any Advance denominated in a Permitted Non-USD Currency, the amount of USD that would be required to purchase the amount of such Permitted Non-USD Currency of such Advance using the reciprocal foreign exchange rates obtained as described in the definition of the term Spot Rate.

"<u>Effective Date</u>" has the meaning set forth in Section 2.04.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 14 -

"<u>Effective Date Letter</u>" means the letter agreement, dated as of the Effective Date, by and between the Company and the Administrative Agent.

"<u>Eligibility Criteria</u>" has the meaning set forth in Section 1.03.

"<u>Eligible Investments</u>" has the meaning set forth in Section 4.01.

"<u>ERISA</u>" means the United States Employee Retirement Income Security Act of 1974, as amended.

"<u>ERISA Affiliate</u>" means any trade or business (whether or not incorporated) under common control with the Company within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412, 430 or 431 of the Code).

"<u>ERISA Event</u>" means that (1) any of the Company or the Parent has underlying assets which constitute "plan assets" within the meaning of the Plan Asset Rules or (2) any of the Company, the Parent or any ERISA Affiliate sponsors, maintains, contributes to, is required to contribute to or has any material liability with respect to any Plan.

"<u>EURIBOR</u>" means, for each Calculation Period relating to an Advance in Euros, the Euro interbank offered rate administered by the European Money Markets Institute (or any other person which takes over the administration of that rate) for a three-month period displayed on Reuters Screen EURIBOR01 (or any replacement Thomson Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters at approximately 11:00 a.m., Brussels time, two (2) Business Days prior to the commencement of such Calculation Period. If such page or service ceases to be available, the Administrative Agent may specify another page or service displaying the relevant rate in consultation with the Company. Notwithstanding anything in the foregoing to the contrary, if EURIBOR as calculated for any purpose under this Agreement is below zero percent, EURIBOR will be deemed to be zero percent for such purpose until such time as it exceeds zero percent again.

"<u>Euro</u>" or "€" means the lawful currency of Participating Member States.

"<u>Event of Default</u>" has the meaning set forth in Article VII.

"<u>Excess Funded Amount</u>" has the meaning set forth in Section 4.03(c)(ii).

"<u>Excess Interest Proceeds</u>" means, at any time of determination, the excess of (1) amounts then on deposit in the Collateral Accounts representing Interest Proceeds over (2) the projected amount required to be paid pursuant to Section 4.05(a) and (b) on the next Interest Payment Date, the next Additional Distribution Date or the Maturity Date, as applicable, in each case, as determined by the Company in good faith and in a commercially reasonable manner and verified by the Administrative Agent.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to a Secured Party or required to be withheld or deducted from a payment to a Secured Party, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes and branch profits Taxes, in each case, (i) imposed as a result of such Secured Party being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender that are or would be required to be withheld pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Financing Commitment or Advance or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 3.03, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Secured Party's failure to comply with Section 3.03(f) and (d) any U.S. federal withholding Taxes imposed under FATCA.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 15 -

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, and intergovernmental agreements thereunder, similar or related non-U.S. law that corresponds to Sections 1471 to 1474 of the Code, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with the implementation of such sections of the Code and any U.S. or non-U.S. fiscal or regulatory law, legislation, rules, guidance, notes or practices adopted pursuant to such intergovernmental agreement.

"<u>Federal Funds Effective Rate</u>" means, for any day, the rate calculated by the Federal Reserve Bank of New York based on such day's federal funds transactions by depositary institutions, as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time, and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the effective federal funds rate, *provided* that if the Federal Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.

"<u>Federal Reserve Bank of New York's Website</u>" means the website of the NYFRB at http://www.newyorkfed.org, or any successor source.

"<u>Financing Commitment</u>" means, with respect to each Lender, the commitment of such Lender to provide Advances to the Company hereunder in an amount up to but not exceeding the amount set forth opposite such Lender's name on the Transaction Schedule.

"<u>First Amendment Date</u>" means December 27, 2024.

"<u>First Amendment Date Letter</u>" means the letter agreement, dated as of the First Amendment Date, by and between the Company and the Administrative Agent.

"<u>Foreign Lender</u>" means a Lender that is not a U.S. Person.

"<u>Foreign Subsidiary</u>" means (i) any Subsidiary that is not incorporated or organized under the laws of a State within the United States of America or the District of Columbia, and that is a "controlled foreign corporation" within the meaning of Section 957 of the Code with respect to which a Company is a "US Shareholder" within the meaning of Section 951(b) of the Code, or (ii) any Subsidiary that is a disregarded entity for U.S. federal income tax purposes and which assets are all or substantially all stock or stock equivalents of, or debt interests in, one or more Subsidiaries described in clause (i) above.

"<u>GAAP</u>" means generally accepted accounting principles in effect from time to time in the United States, as applied from time to time by the Company.

"<u>GBP</u>" and "£" mean British Pounds.

"<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

"<u>Indebtedness</u>" as applied to any Person, means, without duplication, as determined in accordance with GAAP, (i) all indebtedness of such Person for borrowed money; (ii) all obligations of such Person evidenced by bonds, debentures, notes, deferrable securities or other similar instruments; (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable and accrued expenses arising in the ordinary course of business; (iv) that portion of obligations with respect to capital leases that is properly classified as a liability of such Person on a balance sheet; (v) all obligations of such Person to reimburse or prepay any bank or other Person in respect of amounts paid under a letter of credit, banker's acceptance or similar instrument (but only to the

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 16 -

extent such amounts have been drawn and not reimbursed); (vi) all debt of others secured by a Lien on any asset of such Person, whether or not such debt is assumed by such Person; and (vii) all debt, capital lease obligations or similar obligations to repay money of others guaranteed by such Person or for which such Person acts as surety. Notwithstanding the foregoing, "Indebtedness" shall not include (a) a commitment arising in the ordinary course of business to purchase a future Portfolio Investment in accordance with the terms of this Agreement or (b) indebtedness of the Company on account of the sale by the Company of the first out tranche of any Portfolio Investment that arises solely as an accounting matter under ASC 860; provided that such indebtedness (i) is nonrecourse to the Company and (ii) would not represent a claim against the Company in a bankruptcy, insolvency or liquidation proceeding of the Company, in each case in excess of the amount sold or purportedly sold.

"<u>Indemnified Person</u>" has the meaning specified in Section 5.03.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Company under this Agreement and (b) to the extent not otherwise described in (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning set forth in Section 10.04(b).

"<u>Independent Dealer</u>" means any of the following (as such list may be revised from time to time by mutual agreement of the Company and the Administrative Agent): Bank of America/Merrill Lynch, Barclays Bank, BNP Paribas, Citibank, Deutsche Bank, Goldman Sachs, Morgan Stanley, UBS, Société Générale, Barclays Bank PLC, Wells Fargo, Royal Bank of Scotland, Royal Bank of Canada, Bank of Montreal, HSBC and any Affiliate of any of the foregoing, but in no event including the Company or any Affiliate of the Company.

"<u>Ineligible Investment</u>" means any Portfolio Investment that fails, at any time, to satisfy the Eligibility Criteria; *provided* that with respect to any Portfolio Investment for which the Administrative Agent has waived one or more of the criteria set forth on Schedule 3, the Eligibility Criteria in respect of such Portfolio Investment shall be deemed not to include such waived criteria at any time after such waiver and such Portfolio Investment shall not be considered an "Ineligible Investment" by reason of its failure to meet such waived criteria; *provided further* that any Portfolio Investment (other than an Initial Portfolio Investment) which has not been approved by the Administrative Agent pursuant to Section 1.02 on or prior to its Trade Date will be deemed to be an Ineligible Investment until such later date (if any) on which such Portfolio Investment is so approved; *provided further* that any Participation Interest that has not been elevated to an absolute assignment on or prior to the 60<sup>th</sup> calendar day (or such later date as the Administrative Agent may agree in its sole discretion) following the Effective Date shall constitute an Ineligible Investment until the date on which such elevation has occurred.

"<u>Ineligible Person</u>" means any Person listed in Schedule 7.

"<u>Information</u>" means all information received from or on behalf of the Company, the Portfolio Manager or any Affiliate thereof relating to the Company or its business or any obligor in respect of any Portfolio Investment.

"<u>Initial Portfolio Investments</u>" means the Portfolio Investments listed in Schedule 5.

"<u>Interest Collection Account</u>" means the account(s) established by the Securities Intermediary and set forth on the Transaction Schedule for the deposit of Interest Proceeds and any successor accounts established in connection with the resignation or removal of the Securities Intermediary.

"<u>Interest Payment Date</u>" has the meaning set forth in Section 4.03(b).

"<u>Interest Proceeds</u>" means all payments of interest received in respect of the Portfolio Investments and Eligible Investments acquired with the proceeds of Portfolio Investments (in each case other than accrued interest purchased using Principal Proceeds, but including proceeds received from the sale of interest accrued after the date on which the Company acquired the related Portfolio Investment),

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 17 -

all other payments on the Eligible Investments acquired with the proceeds of Portfolio Investments (for the avoidance of doubt, such other payments shall not include principal payments (including, without limitation, prepayments, repayments or sale proceeds) with respect to Eligible Investments acquired with Principal Proceeds) and all payments of fees, dividends and other similar amounts received in respect of the Portfolio Investments or deposited into any of the Collateral Accounts (including closing fees, commitment fees, facility fees, late payment fees, amendment fees, waiver fees, prepayment fees and premiums, ticking fees, delayed compensation, customary syndication or other up-front fees and customary administrative agency or similar fees); *provided*, *however*, that for the avoidance of doubt, Interest Proceeds shall not include amounts or Eligible Investments in the MV Cure Account or Unfunded Exposure Account or any proceeds therefrom.

"<u>Investment</u>" means (a) the purchase of any debt or equity security of any other Person, or (b) the making of any Loan or advance to any other Person, or (c) becoming obligated with respect to a contingent obligation in respect of obligations of any other Person.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>JPMCB</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Lender Participant</u>" has the meaning set forth in the Syndication Letter.

"<u>Lenders</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Liabilities</u>" has the meaning set forth in Section 5.03.

"<u>Lien</u>" means any security interest, lien, charge, pledge, preference or encumbrance of any kind, in each case, securing the payment of an obligation, including tax liens, mechanics' liens and any liens that attach by operation of law.

"<u>Liquid Portfolio Investment</u>" means any Portfolio Investment other than a Mezzanine Obligation that, on the applicable date of determination (i) in the case of a Loan, has at least two bids available through LoanX/Markit Group Limited or (ii) in the case of a bond, has traded volume through TRACE of at least $2,000,000 during the thirty day period immediately preceding such date of determination.

"<u>Loan</u>" means any obligation for the payment or repayment of borrowed money that is documented by a term and/or revolving loan agreement or other similar credit agreement.

"<u>Loan Documents</u>" means this Agreement, the Participation Agreement, the Sale Agreement, the Effective Date Letter, the First Amendment Date Letter, the Second Amendment Date Letter, the Syndication Letter, the Account Control Agreement, the Portfolio Management Agreement (including any amendments or supplements thereto or modifications or waivers thereof) and any certifications (including in any Notice of Acquisition), requests (including Requests for Advance) or similar documents delivered in accordance herewith or therewith.

"<u>Margin Stock</u>" has the meaning provided such term in Regulation U of the Board of Governors of the Federal Reserve Board.

"<u>Market Value</u>" means, on any date of determination (i) with respect to any Liquid Portfolio Investment, the average indicative bid-side price (expressed as a percentage) determined by LoanX/Markit Group Limited or TRACE (or, if the Administrative Agent determines in its sole discretion that such bid price is not available or is not indicative of the actual current market value, the market value of such Portfolio Investment as determined by the Administrative Agent in good faith and in a commercially reasonable manner) and (ii) with respect to any other Portfolio Investment, the market value of such Portfolio Investment as determined by the Administrative Agent in good faith and in a commercially reasonable manner, in each case, expressed as a percentage of par.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 18 -

So long as no Market Value Event has occurred or Event of Default has occurred and is continuing, the Portfolio Manager shall have the right to initiate a dispute of the Market Value of certain Portfolio Investments as set forth below; *provided* that the Portfolio Manager provides the executable bid or valuation set forth below no later than 12:00 p.m. New York City time on the second Business Day following the related date of determination; *provided, further,* that with respect to each Portfolio Investment, the Portfolio Manager may not initiate a dispute of the Market Value thereof until the earlier of (x) the date that is six (6) months following the Trade Date of such Portfolio Investment and (y) the date on which the Administrative Agent provides a Market Value with respect to such Portfolio Investment that is at least 5% lower than the Market Value of such Portfolio Investment on the Trade Date of such Portfolio Investment.

If the Portfolio Manager disputes the determination of Market Value with respect to any Portfolio Investment: (i) with respect to any Liquid Portfolio Investment, the Portfolio Manager may, at the expense of the Company, obtain a written executable bid from an Independent Dealer for the full principal amount of such Portfolio Investment and submit evidence of such bid to the Administrative Agent; *provided* that the Administrative Agent has the ability to execute any such bid by selling any portion of such Liquid Portfolio Investment held by the Administrative Agent or any of its Affiliates for its own account directly to any such Independent Dealer (or indirectly through a broker or other intermediary reasonably acceptable to the Administrative Agent) at the time such bid is delivered to the Administrative Agent by the Portfolio Manager and (ii) with respect to any other Portfolio Investment, the Portfolio Manager may, with respect to up to five such Portfolio Investments in each calendar quarter, engage a Nationally Recognized Valuation Provider, at the expense of the Company, to provide a valuation of the applicable Portfolio Investments and submit evidence of such valuation to the Administrative Agent; *provided* that if the Company engages a Nationally Recognized Valuation Provider that provides a range of valuations, then the valuation for the purposes of this clause (ii) shall be equal to the mean of the highest and lowest valuations of such range.

The market value of any Portfolio Investment determined in accordance with the immediately preceding paragraph will be the Market Value for the applicable Portfolio Investment from and after the Business Day following receipt of notice of such executable bid or valuation by the Administrative Agent unless and until the Administrative Agent has made a good faith and commercially reasonable determination that the Market Value of such Portfolio Investment has changed, in which case the Administrative Agent may determine another Market Value (in accordance with the definition of Market Value).

Notwithstanding anything to the contrary herein, (A) the Market Value for any Portfolio Investment shall not be greater than the par amount thereof, (B) the Market Value of any Ineligible Investment shall be deemed to be zero, (C) the Administrative Agent shall be entitled to disregard as invalid any bid submitted by the Portfolio Manager from any Independent Dealer if, in the Administrative Agent's good faith judgment: (i) such Independent Dealer is ineligible to accept assignment or transfer of the relevant Portfolio Investment or portion thereof, as applicable, substantially in accordance with the then-current market practice in the principal market for such Portfolio Investment, as reasonably determined by the Administrative Agent; or (ii) such firm bid or such firm offer is not bona fide, including due to the insolvency of the Independent Broker-Dealer and (D) no valuation provided by a Nationally Recognized Valuation Provider shall be effective unless it is in form and substance reasonably acceptable to the Administrative Agent and takes into account factors commonly used by market participants in conducting valuation processes, including without limitation (i) industry and comparable company analysis, (ii) market yield assumptions, (iii) credit fundamentals, cyclical nature, and outlook of

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 19 -

the business of the Portfolio Investment's obligor; and (iv) historical material debt-financed acquisitions consummated by the Portfolio Investment's obligor.

The Administrative Agent shall notify the Company, the Portfolio Manager and the Collateral Administrator in writing of the then-current Market Value of each Portfolio Investment in the Portfolio on a monthly basis or upon the reasonable request of the Portfolio Manager (but no more frequently than 3 requests per calendar month). Any notification from the Administrative Agent to the Company that a Market Value Trigger Event has occurred and is continuing shall be accompanied by a written statement showing the then-current Market Value of each Portfolio Investment.

"<u>Market Value Cure</u>" means, on any date of determination, (i) with the consent of the Administrative Agent, the contribution by the Parent of additional Portfolio Investments to the Company and the Delivery thereof by the Company to the Collateral Agent pursuant to the terms hereof, (ii) the contribution by the Parent of cash to the Company and the Delivery thereof by the Company to the Collateral Agent pursuant to the terms hereof (which amounts shall be deposited in the MV Cure Account), (iii) the sale by the Company of one or more Portfolio Investments in accordance with the requirements of this Agreement, (iv) the prepayment by the Company of an aggregate principal amount of Advances (together with accrued and unpaid interest thereon) or (v) any combination of the foregoing clauses (i), (ii), (iii) and (iv), in each case during the Market Value Cure Period, at the option of the Portfolio Manager, and in an amount such that immediately after giving effect to all such actions the Net Advances are less than the product of (a) the Net Asset Value and (b) the Market Value Cure Level; *provided* that, any Portfolio Investment contributed to the Company in connection with the foregoing must meet all of the applicable Eligibility Criteria (unless otherwise consented to by the Administrative Agent). In connection with any Market Value Cure under clause (i) above, a Portfolio Investment shall be deemed to have been contributed to the Company if there has been a valid, binding and enforceable contract for the assignment of such Portfolio Investment to the Company and, in the reasonable judgment of the Portfolio Manager, such assignment will settle, in the case of a Loan, within fifteen (15) Business Days thereof and, in the case of any other Portfolio Investment, within three (3) Business Days thereof. The Portfolio Manager shall use its commercially reasonable efforts to effect any such assignment within such time period.

"<u>Market Value Cure Failure</u>" means the failure by the Company to effect a Market Value Cure as set forth in the definition of such term.

"<u>Market Value Cure Level</u>" has the meaning set forth in the Transaction Schedule.

"<u>Market Value Cure Period</u>" means the period commencing on the Business Day on which the Portfolio Manager receives notice from the Administrative Agent (which if received after 2:00 p.m., New York City time, on any Business Day, shall be deemed to have been received on the next succeeding Business Day) of the occurrence of a Market Value Trigger Event and ending at the close of business in New York two (2) Business Days thereafter.

"<u>Market Value Event</u>" means (A) the occurrence of both of the following events (i) a Market Value Trigger Event and (ii) a Market Value Cure Failure or (B) if in connection with any Market Value Cure, a Portfolio Investment sold, contributed or deemed to have been contributed to the Company shall fail to settle within (i) in the case of a Loan, fifteen (15) Business Days (or such longer period of time agreed to by the Administrative Agent in its sole discretion) from the related Trade Date thereof and (ii) in the case of any other Portfolio Investment, three (3) Business Days (or such longer period of time agreed to by the Administrative Agent in its sole discretion) from the related Trade Date thereof.

"<u>Market Value Trigger</u>" has the meaning set forth in the Transaction Schedule.

"<u>Market Value Trigger Event</u>" means an event that shall have occurred if the Administrative Agent has determined and notified the Portfolio Manager in writing as of any date that the Net Advances exceed the product of (a) the Net Asset Value and (b) the Market Value Trigger.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 20 -

"<u>Material Adverse Effect</u>" means a material adverse effect on (a) the business, assets, operations or condition, financial or otherwise, of the Company or the Portfolio Manager, (b) the ability of the Company, the Seller, the MPA Seller or the Portfolio Manager to perform its obligations under this Agreement or any of the other Loan Documents or (c) the rights of or benefits available to the Agents or the Lenders under this Agreement or any of the other Loan Documents.

"<u>Material Amendment</u>" means any amendment, modification or supplement to this Agreement that (i) increases the Financing Commitment of any Lender, (ii) reduces the principal amount of any Advance or reduces the rate of interest thereon (other than a waiver of the application of the Adjusted Applicable Margin), or reduces any fees payable to a Lender hereunder, (iii) postpones the scheduled date of payment of the principal amount of any Advance, or any interest thereon, or any other amounts payable hereunder, or reduces the amount of, waives or excuses any such payment (other than a waiver of the application of the Adjusted Applicable Margin), or postpones the scheduled date of expiration of any Financing Commitment, (iv) changes any provision in a manner that would alter the pro rata sharing of payments required hereby or (v) changes any of the provisions of this definition or the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder.

"<u>Maturity Date</u>" means the date that is the earliest of (1) the Scheduled Termination Date set forth on the Transaction Schedule, (2) the date on which the Secured Obligations become due and payable upon the occurrence of an Event of Default under Article VII and the acceleration of the Secured Obligations, (3) the date on which the principal amount of the Advances is irrevocably reduced to zero as a result of one or more prepayments and the Financing Commitments are irrevocably terminated and (4) the date after a Market Value Event on which all Portfolio Investments have been sold and the proceeds therefrom have been received by the Company.

"<u>Maximum Rate</u>" has the meaning set forth in Section 10.08.

"<u>Mezzanine Obligation</u>" means a Portfolio Investment which is not a Senior Secured Loan, a Second Lien Loan or other senior secured corporate debt security.

"<u>Minimum Funding Amount</u>" means, on any date of determination, the amount set forth in the table below; *provided* that, on and after the Second Amendment Date, the Minimum Funding Amount shall be (a) for the period of three months following the Second Amendment Date, equal to the sum of (1) the amount set forth in the last row below *plus* (2) 15% of the increase in the Financing Commitment resulting from the Second Amendment Commitment Increase, (b) for the period (i) starting on the date following the date that is three months following the Second Amendment Date and (ii) ending on the date that is six months following the Second Amendment Date, equal to the sum of (1) the amount set forth in the last row below *plus* (2) 40% of the increase in the Financing Commitment resulting from the Second Amendment Commitment Increase, (c) for the period (i) starting on the date following the date that is six months following the Second Amendment Date and (ii) ending on the date that is nine months following the Second Amendment Date, equal to the sum of (1) the amount set forth in the last row below *plus* (2) 60% of the increase in the Financing Commitment resulting from the Second Amendment Commitment Increase, and (d) thereafter, 80% of the aggregate Financing Commitment after giving effect to the Second Amendment Commitment Increase:

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 21 -

---

| | | |
|:---|:---|:---|
| **Period Start Date** | **Period End Date** | **Minimum Funding Amount (U.S.$)** |
| **Effective Date** | **To and including December 26, 2024** | **300000000** |
| First Amendment Date | To and including the last day of the Reinvestment Period | 80% of the Financing Commitment |

---

"<u>MPA Seller</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>MV Cure Account</u>" means the account established by the Securities Intermediary and set forth on the Transaction Schedule and any successor accounts established in connection with the resignation or removal of the Securities Intermediary.

"<u>Nationally Recognized Valuation Provider</u>" means (i) Lincoln International LLC (f/k/a Lincoln Partners LLC), (ii) Valuation Research Corporation, (iii) Alvarez & Marsal, (iv) Deloitte and (v) Houlihan Lokey; *provided* that any independent entity providing professional asset valuation services may be added to this definition by the Company (with the consent of the Administrative Agent) or added to this definition by the Administrative Agent from time to time by notice thereof to the Company and the Portfolio Manager; *provided*, *further*, that the Administrative Agent may remove any provider from this definition by written notice to the Company and the Portfolio Manager so long as, after giving effect to such removal, at least three providers listed in clauses (i) through (v) above remain designated pursuant to this definition.

"<u>Net Advances</u>" means the principal amount of the outstanding Advances (inclusive of Advances that have been requested for any outstanding Purchase Commitments which have traded but not settled) minus the amounts then on deposit in the Collateral Accounts (including cash and Eligible Investments) representing Principal Proceeds (other than Principal Proceeds that have been identified for use to settle outstanding Purchase Commitments which have traded but not settled).

"<u>Net Asset Value</u>" means, on any date of determination, the sum of (A) the sum of the product for each Portfolio Investment (both owned and in respect of which there is an outstanding Purchase Commitment that has traded but not settled), other than, for any Loan, the unfunded commitment amount of a Delayed Funding Term Loan of (x) the Market Value of such Portfolio Investment multiplied by (y) the funded principal amount of such Portfolio Investment *plus* (B) the amounts then on deposit in the Unfunded Exposure Account (including cash and Eligible Investments); *provided* that, for the avoidance of doubt, (1) the Concentration Limitation Excess, (2) any Portfolio Investment which has traded but not settled (x) in the case of a Loan, within fifteen (15) Business Days (or such longer period of time agreed to by the Administrative Agent in its sole discretion) from the related Trade Date thereof and (y) in the case of any other Portfolio Investment, within three (3) Business Days (or such longer period of time agreed to by the Administrative Agent in its sole discretion) from the related Trade Date thereof and (3) any Ineligible Investments will, in each case, be excluded from the calculation of the Net Asset Value and assigned a value of zero for such purposes. In addition, any Portfolio Investment in respect of which the requirements of Section 6.02(ll)(x) have not been satisfied will be excluded from the calculation of the Net Asset Value and assigned a value of zero for such purposes until such time (if any) as such requirements are satisfied.

"<u>Non-Call Period</u>" means, the period beginning on, and including, the Effective Date and ending on, but excluding the earlier of (a) the date of a Non-Call Termination Event and (b) October 4, 2025.

"<u>Non-Call Termination Event</u>" means the termination of the Non-Call Period by the Company upon at least five (5) Business Days' prior written notice to the Administrative Agent, the Collateral Administrator and the Collateral Agent following the occurrence of either of the following

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 22 -

events: (a) the Lenders default in their funding obligations hereunder and such default continues for ten (10) Business Days or (b) JPMorgan Chase Bank, National Association ceases to act as Administrative Agent.

"<u>Notice of Acquisition</u>" has the meaning set forth in Section 1.02(a).

"<u>NYFRB</u>" means the Federal Reserve Bank of New York.

"<u>Other Connection Taxes</u>" means, with respect to any Secured Party, Taxes imposed as a result of a present or former connection between such Secured Party and the jurisdiction imposing such Tax (other than connections arising solely from (and that would not have existed but for) such Secured Party having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document).

"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except (i) any such Taxes that are Other Connection Taxes imposed with respect to an assignment, grant of a participation, designation of a new office for receiving payments by or on account of the Company or other transfer and (ii) for the avoidance of doubt, any Excluded Taxes.

"<u>Parent</u>" means Franklin BSP Capital Corporation.

"<u>Parent Portfolio Investment</u>" means each Portfolio Investment sold and/or contributed by the Parent to the Company pursuant to the Sale Agreement.

"<u>Parent Purchased Principal Balance</u>" means, as of any date of determination, an amount equal to (a) the aggregate principal balance of all Parent Portfolio Investments acquired by the Company prior to such date minus (b) the aggregate principal balance of all Parent Portfolio Investments distributed to or repurchased by the Parent prior to such date.

"<u>Partial PIK Portfolio Investment</u>" means a Loan for which the underlying instruments relating thereto permit the "payment in kind" of interest, but require that interest at a rate at least equal to the sum of (a) the reference rate applicable to such Loan plus (b) the greater of (i) 2.25% and (ii) 50% of the margin applicable to such Loan, is paid in cash on at least a quarterly or semi-annual basis.

"<u>Participating Member State</u>" means any member state of the European Union that has the Euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

"<u>Participant Register</u>" has the meaning specified in Section 10.06(d).

"<u>Participation Interest</u>" means a participation interest in a Loan.

"<u>PATRIOT Act</u>" has the meaning set forth in Section 2.04(f).

"<u>Permitted Distribution</u>" means, on any Business Day, distributions of Interest Proceeds, Principal Proceeds or proceeds of Advances (in each case, at the discretion of the Company) to the Parent (or other permitted equity holders of the Company) or to the Portfolio Manager in respect of accrued management fees or expenses in accordance with the Portfolio Management Agreement; *provided* that amounts may be distributed pursuant to this definition (a) in the case of Interest Proceeds, only to the extent of available Excess Interest Proceeds and (b) in the case of Principal Proceeds, only prior to the last day of the Reinvestment Period and, in each case, only so long as (i) no Default or Event of Default has occurred and is continuing (or would occur after giving effect to such Permitted Distribution), (ii) no Market Value Event shall have occurred (or would occur after giving effect to such Permitted

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 23 -

Distribution), (iii) the Borrowing Base Test is satisfied (and will be satisfied after giving effect to such Permitted Distribution), (iv) the Company gives at least two (2) Business Days' prior written notice thereof to the Administrative Agent, the Collateral Agent and the Collateral Administrator, (v) not more than twelve Permitted Distributions are made in any single Calculation Period and (vi) the Company and the Administrative Agent confirm in writing (which may be by email) to the Collateral Agent and the Collateral Administrator that the conditions to a Permitted Distribution set forth herein are satisfied. Nothing in this definition shall limit the right or ability of the Company to make a Permitted RIC Distribution at any time.

"<u>Permitted Lien</u>" means any of the following: (a) Liens for Taxes if such Taxes shall not at the time be due and payable or if a Person shall currently be contesting the validity thereof in good faith by appropriate proceedings and with respect to which reserves, if necessary, in accordance with GAAP have been provided on the books of such Person, (b) Liens imposed by law, such as materialmen's, warehousemen's, mechanics', carriers', workmen's and repairmen's Liens and other similar Liens, arising by operation of law in the ordinary course of business for sums that are not overdue or are being contested in good faith, (c) Liens granted pursuant to or by the Loan Documents, (d) judgement Liens not constituting an Event of Default hereunder, (e) bankers' Liens, rights of setoff and other similar Liens existing solely with respect to cash and Cash Equivalents on deposit in one or more accounts maintained by such Person, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are maintained, securing amounts owing to such bank with respect to cash management, operating account arrangements and netting arrangements, (f) with respect to collateral underlying any Portfolio Investment, the Lien in favor of the Company herein and Liens permitted under the underlying instruments related to such Portfolio Investment, (g) as to any agented Portfolio Investment, Liens in favor of the agent on behalf of all the lenders to the related obligor, and (h) Liens of clearing agencies, broker-dealers and similar Liens incurred in the ordinary course of business, provided that such Liens (x) attach only to the securities (or proceeds) being purchased or sold and (y) secure only obligations incurred in connection with such purchase or sale, and not any obligation in connection with financing.

"<u>Permitted Non-USD Currency</u>" means AUD, Euros, CAD, and/or GBP, as applicable.

"<u>Permitted Non-USD Currency Account Opening Requirements</u>" has the meaning set forth in Section 8.01(a).

"<u>Permitted Non-USD Currency Accounts</u>" means the Permitted Non-USD Currency Custodial Accounts, the Permitted Non-USD Currency Interest Collection Accounts and the Permitted Non-USD Currency Principal Collection Accounts, collectively.

"<u>Permitted Non-USD Currency Collection Accounts</u>" means the Permitted Non-USD Currency Interest Collection Accounts and the Permitted Non-USD Currency Principal Collection Accounts, collectively.

"<u>Permitted Non-USD Currency Custodial Accounts</u>" means, collectively, the accounts established by the Securities Intermediary in respect of each Permitted Non-USD Currency set forth on the Transaction Schedule and any successor accounts established in connection with the resignation or removal of the Securities Intermediary.

"<u>Permitted Non-USD Currency Interest Collection Accounts</u>" means, collectively, the accounts established by the Securities Intermediary in respect of each Permitted Non-USD Currency for the deposit of Interest Proceeds denominated in such Permitted Non-USD Currency and any successor accounts established in connection with the resignation or removal of the Securities Intermediary.

"<u>Permitted Non-USD Currency Principal Collection Accounts</u>" means, collectively, the accounts established by the Securities Intermediary in respect of each Permitted Non-USD Currency for the deposit of Principal Proceeds denominated in such Permitted Non-USD Currency and any successor accounts established in connection with the resignation or removal of the Securities Intermediary.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 24 -

"<u>Permitted RIC Distribution</u>" means distributions to the Parent (from the Collection Accounts or otherwise) to the extent reasonably required to allow the Parent to make sufficient distributions to qualify as a regulated investment company within the meaning of Section 851 of the Code and to otherwise eliminate or minimize federal or state income or excise taxes payable by the Parent in or with respect to any taxable year of the Parent (or any calendar year, as relevant); *provided* that (A) the amount of any such payments made in or with respect to any such taxable year (or calendar year, as relevant) of the Parent shall not exceed the amounts that the Company would have been required to distribute to the Parent to: (i) allow the Company to satisfy the minimum distribution requirements that would be imposed by Section 852(a) of the Code (or any successor thereto) to maintain its eligibility to be taxed as a regulated investment company for any such taxable year, (ii) reduce to zero for any such taxable year the Company's liability for federal income taxes imposed on (x) its investment company taxable income pursuant to Section 852(b)(1) of the Code (or any successor thereto), and (y) its net capital gain pursuant to Section 852(b)(3) of the Code (or any successor thereto), and (iii) reduce to zero the Company's liability for federal excise taxes for any such calendar year imposed pursuant to Section 4982 of the Code (or any successor thereto), in the case of each of (i), (ii) or (iii), calculated assuming that the Company had qualified to be taxed as a regulated investment company under the Code, (B) after the occurrence and during the continuance of an Event of Default, the amount of Permitted RIC Distributions made in any calendar quarter shall not exceed U.S.$1,500,000 (or such greater amount consented to by the Administrative Agent in its sole discretion) and (C) amounts may be distributed pursuant to this definition only to the extent of available Excess Interest Proceeds and/or Principal Proceeds and only so long as (x) the Borrowing Base Test is satisfied immediately prior to and immediately after giving effect to such Permitted RIC Distribution (unless otherwise consented to by the Administrative Agent in its sole discretion), (y) the Company gives at least one (1) Business Day's prior written notice thereof to the Administrative Agent, the Collateral Agent and the Collateral Administrator and (z) the Company and the Administrative Agent confirm in writing (which may be by email) to the Collateral Agent and the Collateral Administrator that the conditions to a Permitted RIC Distribution set forth herein are satisfied.

"<u>Permitted Working Capital Lien</u>" has meaning set forth in the definition of "Senior Secured Loan".

"<u>Person</u>" means any natural person, corporation, partnership, trust, limited liability company, association, Governmental Authority or unit, or any other entity, whether acting in an individual, fiduciary or other capacity.

"<u>Plan</u>" means any "employee benefit plan" (as such term is defined in Section 3(3) of ERISA) subject to Section 412 of the Code or Title IV of ERISA established by the Company, the Parent or any ERISA Affiliate.

"<u>Plan Asset Rules</u>" means the regulations issued by the United States Department of Labor at Section 2510.3-101 of Part 2510 of Chapter XXV, Title 29 of the United States Code of Federal Regulations, as modified by Section 3(42) of ERISA.

"<u>Portfolio</u>" means all Portfolio Investments Purchased hereunder and not otherwise sold or liquidated.

"<u>Portfolio Company</u>" means any Person that meets the definition of the term "Affiliate" with respect to the Company or the Portfolio Manager solely as a result of portfolio investments made by any Affiliates of the Portfolio Manager or Benefit Street Partners L.L.C.

"<u>Portfolio Investments</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Portfolio Management Agreement</u>" means the portfolio management agreement, dated as of the First Amendment Date, by and between the Company and the Portfolio Manager.

"<u>Portfolio Manager</u>" has the meaning set forth in the introductory section of this Agreement.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 25 -

"<u>Possessory Collateral</u>" has the meaning set forth in the definition of Deliver.

"<u>Prime Rate</u>" means the rate of interest *per annum* publicly announced from time to time by JPMCB as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

"<u>Principal Collection Account</u>" means the account(s) established by the Securities Intermediary and set forth on the Transaction Schedule for the deposit of Principal Proceeds and any successor accounts established in connection with the resignation or removal of the Securities Intermediary.

"<u>Principal Proceeds</u>" means all amounts received by the Company with respect to the Portfolio Investments or any other Collateral, and all amounts otherwise on deposit in the Collateral Accounts (including cash contributed by the Company), in each case other than Interest Proceeds or amounts on deposit in the Unfunded Exposure Account.

"<u>Priority of Payments</u>" has the meaning set forth in Section 4.05.

"<u>Proceeding</u>" has the meaning set forth in Section 10.07(b).

"<u>Purchase</u>" means each acquisition of a Portfolio Investment hereunder, including by way of a contribution by the Parent to the Company pursuant to the Sale Agreement and the acquisition of a participation interest pursuant to the Participation Agreement.

"<u>Purchase Commitment</u>" has the meaning set forth in Section 1.02(a).

"<u>Reference Rate</u>" means (i) with respect to Advances denominated in USD and related calculations, the Term SOFR Rate, (ii) with respect to Advances denominated in CAD and related calculations, Term CORRA, (iii) with respect to Advances denominated in GBP and related calculations, Daily Simple SONIA, (iv) with respect to Advances denominated in Euros and related calculations, EURIBOR, and (v) with respect to Advances Denominated in AUD, the AUD Screen Rate.

"<u>Reference Time</u>" with respect to any setting of the then-current Benchmark means (1) if such Benchmark is the Term SOFR Rate, 5:00 a.m. (Chicago time), two (2) Business Days preceding the date of such setting and (2) if such Benchmark is not the Term SOFR Rate, the time determined by the Administrative Agent in its reasonable discretion in consultation with the Company.

"<u>Register</u>" has the meaning set forth in Section 3.01(c).

"<u>Reinvestment Period</u>" means the period beginning on, and including, the Effective Date and ending on, but excluding, the earliest of (i) October 4, 2028, (ii) the date on which a Market Value Event occurs and (iii) the date on which an Event of Default occurs; *provided* that, in the case of this clause (iii), with the written consent of the Required Lenders and the Administrative Agent (which consent may be granted or withheld in their respective sole discretion), at the request of the Portfolio Manager, the Reinvestment Period may be reinstated if such Event of Default is waived or is cured prior to any declaration of the Secured Obligations as due and payable pursuant to Article VII as a result of such Event of Default.

"<u>Related Parties</u>" has the meaning set forth in Section 9.01.

"<u>Relevant Governmental Body</u>" means (i) with respect to a Benchmark Replacement in respect of Advances denominated in USD, the Federal Reserve Board, the NYFRB, or a committee officially endorsed or convened by the Federal Reserve Board and/or the NYFRB or, in each case, any successor thereto and (ii) with respect to a Benchmark Replacement in respect of Advances denominated in any Permitted Non-USD Currency, (a) the central bank for the currency in which such Benchmark Replacement is denominated or any central bank or other supervisor which is responsible for supervising either (1) such Benchmark Replacement or (2) the administrator of such Benchmark Replacement or (b)

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 26 -

any working group or committee officially endorsed or convened by (1) the central bank for the currency in which such Benchmark Replacement is denominated, (2) any central bank or other supervisor that is responsible for supervising either (A) such Benchmark Replacement or (B) the administrator of such Benchmark Replacement, (3) a group of those central banks or other supervisors or (4) the Financial Stability Board or any part thereof.

"<u>Request for Advance</u>" has the meaning set forth in Section 2.03(d).

"<u>Required Lenders</u>" means Lenders holding 50.1% or more of the sum of (i) the aggregate principal amount of the outstanding Advances *plus* (ii) the aggregate undrawn amount of the outstanding Financing Commitments.

"<u>Responsible Officer</u>" means with respect to the Collateral Agent, the Securities Intermediary or the Collateral Administrator, any officer of the Collateral Agent, the Securities Intermediary or the Collateral Administrator customarily performing functions with respect to corporate trust matters and, with respect to a particular corporate trust matter under this Agreement, any other officer to whom such matter is referred because of such officer's knowledge of and familiarity with the particular subject and, in each case, having direct responsibility for the administration of this Agreement.

"<u>Restricted Payment</u>" means (i) any dividend or other distribution (including, without limitation, a distribution of non-cash assets), direct or indirect, on account of any shares or other equity interests in the Company now or hereafter outstanding; (ii) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, by the Company of any shares or other equity interests in the Company now or hereafter outstanding; and (iii) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares or other equity interests in the Company now or hereafter outstanding.

"<u>Revolving Loan</u>" means any Loan (other than a Delayed Funding Term Loan, but including funded and unfunded portions of revolving credit lines) that under the underlying instruments relating thereto may require one or more future advances to be made to the obligor by a creditor, but any such Loan will be a Revolving Loan only until all commitments by the holders thereof to make advances to the obligor thereon expire or are terminated or are irrevocably reduced to zero.

"<u>Sale Agreement</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Sanctioned Country</u>" means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Cuba, Iran, North Korea, Syria and Crimea).

"<u>Sanctioned Person</u>" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or by the United Nations Security Council, the European Union, any EU member state, His Majesty's Treasury of the United Kingdom or any other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b) or (d) any Person otherwise the subject of Sanctions.

"<u>Sanctions</u>" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or (b) the United Nations Security Council, the European Union, any EU member state, His Majesty's Treasury of the United Kingdom or any other relevant sanctions authority.

"<u>Second Amendment Commitment Increase</u>" means U.S.$250,000,000

"<u>Second Amendment Date</u>" means June 30, 2025.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 27 -

"<u>Second Amendment Date Letter</u>" means the letter agreement, dated as of the Second Amendment Date, by and between the Company and the Administrative Agent.

"<u>Second Lien Loan</u>" means a Loan or note (i) that is secured by a pledge of collateral, which security interest is validly perfected and second priority (subject to liens permitted under the related underlying instruments that are reasonable and customary for similar Loans or notes) under Applicable Law (other than a Loan or note that is second priority to a Permitted Working Capital Lien) and (ii) the Portfolio Manager determines in good faith that the value of the collateral securing the Loan or note (including based on enterprise value) on or about the time of origination or acquisition by the Company equals or exceeds the outstanding principal balance of the Loan or note plus the aggregate outstanding balances of all other Loans or notes of equal or higher seniority secured by the same collateral.

"<u>Secured Obligation</u>" has the meaning set forth in Section 8.02(a).

"<u>Secured Party</u>" has the meaning set forth in Section 8.02(a).

"<u>Securities Intermediary</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Seller</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>Senior Secured Loan</u>" means any Loan or note, that (i) is not (and is not expressly permitted by its terms to become) subordinate in right of payment to any obligation of the obligor in any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings (other than pursuant to a Permitted Working Capital Lien and customary waterfall provisions contained in the applicable loan agreement), (ii) is secured by a pledge of collateral, which security interest is (a) validly perfected and first priority under Applicable Law (subject to liens permitted under the related underlying instruments that are reasonable for similar Loans or notes, and liens accorded priority by law in favor of any Governmental Authority) or (b)(1) validly perfected and second priority in the accounts, documents, instruments, inventory, chattel paper, letter-of-credit rights, supporting obligations, deposit accounts, investments accounts (as such terms are defined in the UCC) and any other assets securing any Working Capital Revolver under Applicable Law and proceeds of any of the foregoing (a first priority lien on such assets a "<u>Permitted Working Capital Lien</u>") and (2) validly perfected and first priority (subject to liens permitted under the related underlying instruments that are reasonable and customary for similar Loans or notes) in all other collateral under Applicable Law, and (iii) the Portfolio Manager determines in good faith that the value of the collateral for such Loan or note (including based on enterprise value) on or about the time of acquisition equals or exceeds the outstanding principal balance of the Loan or note plus the aggregate outstanding balances of all other Loans or notes of equal or higher seniority secured by a first priority Lien over the same collateral.

"<u>Settlement Date</u>" has the meaning set forth in Section 1.03.

"<u>SOFR</u>" means the Secured Overnight Financing Rate.

"<u>Solvent</u>" means, with respect to any Person, that as of the date of determination, (a) the sum of such Person's debt (including contingent liabilities) does not exceed the present fair value of such Person's present assets; (b) such Person's capital is not unreasonably small in relation to its business as contemplated on the date of this Agreement; and (c) such Person has not incurred debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise). For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"<u>SONIA</u>" means, with respect to any Business Day, a rate per annum equal to the Sterling Overnight Index Average for such Business Day published by the SONIA Administrator on the SONIA Administrator's Website on the immediately succeeding Business Day.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 28 -

"<u>SONIA Administrator</u>" means The Bank of England (or a successor administrator of the Sterling Overnight Index Average).

"<u>SONIA Administrator's Website</u>" means the Bank of England's website, currently at http://www.bankofengland.co.uk, or any successor source for the Sterling Overnight Index Average identified as such by the SONIA Administrator from time to time.

"<u>Spot Rate</u>" means, as of any date of determination and with respect to any then-current Permitted Non-USD Currency, (x) with respect to actual currency exchange between USD and any Permitted Non-USD Currency, the applicable currency-USD rate available through the Collateral Agent's banking facilities (or, if the Collateral Agent has notified the Administrative Agent and the Company that it will no longer provide such services or if U.S. Bank Trust Company, National Association or one of its Affiliates is no longer the Collateral Agent, through such other source agreed to by the Administrative Agent in writing at the time of such exchange or calculation) and (y) with respect to all other purposes between USD and any Permitted Non-USD Currency, the applicable currency-USD spot rate that appeared on the BFIX page of Bloomberg Professional Service (or any successor thereto) (or such other recognized service or publication used by the Collateral Administrator for purposes of determining currency spot rates in the ordinary course of its business from time to time) for such currency at 5:00 p.m. New York City time on the immediately preceding Business Day, as determined by the Administrative Agent (with notice to the Collateral Agent and the Collateral Administrator). The determination of the Spot Rate shall be conclusive absent manifest error.

"<u>Subsidiary</u>" of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.

"<u>Syndication Letter</u>" means the letter agreement, dated as of the Effective Date, by and between the Company and the Administrative Agent.

"<u>TARGET2 Settlement Day</u>" means any day on which the Trans-European Automated Real Time Gross Settlement Express Transfer (TARGET2) system (or if such payment system ceases to be operative, such after payment system, if any, determined by the Administrative Agent in consultation with the Company to be a suitable replacement) is open for the settlement of payments in Euro.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term CORRA</u>" means, for each Calculation Period relating to an Advance denominated in CAD, the Term CORRA Reference Rate for a tenor of three (3) months, as such rate is published by the Term CORRA Administrator on the Term CORRA Determination Date for such Calculation Period; provided, however, that if as of 1:00 p.m. (Toronto time) on the Term CORRA Determination Date the Term CORRA Reference Rate for such tenor has not been published by the Term CORRA Administrator and a Benchmark Replacement Date with respect to the Term CORRA Reference Rate has not occurred, then Term CORRA will be the Term CORRA Reference Rate for such tenor as published by the Term CORRA Administrator on the first preceding Business Day for which such Term CORRA Reference Rate for such tenor was published by the Term CORRA Administrator; provided, further, that, in the event that the rate resulting from the sum of any Term CORRA shall be less than zero, such rate shall be deemed to be the zero for purposes of this Agreement.

"<u>Term CORRA Administrator</u>" means Candeal Benchmark Administration Services Inc., TSX Inc., or any successor administrator of the Canadian Overnight Repo Rate Average.

"<u>Term CORRA Determination Date</u>" means, with respect to each Calculation Period, the day that is two (2) Business Days prior to the first day of such Calculation Period.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 29 -

"<u>Term CORRA Reference Rate</u>" the forward-looking term rate based on CORRA.

"<u>Term SOFR Rate</u>" means, for each Calculation Period relating to an Advance denominated in USD, the Term SOFR Reference Rate at approximately 5:00 a.m., Chicago time, two (2) Business Days prior to the commencement of such Calculation Period for rates with a tenor of three months, as such rate is published by the CME Term SOFR Administrator.

"<u>Term SOFR Reference Rate</u>" means, for any day and time (such day, the "<u>Term SOFR Determination Day</u>"), for each Calculation Period relating to an Advance denominated in USD, the rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR; *provided* that if the Term SOFR Reference Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement. If by 5:00 pm (Central Standard time) on the fifth (5th) Business Day immediately following any Term SOFR Determination Day, the "Term SOFR Reference Rate" for the applicable tenor has not been published by the CME Term SOFR Administrator, then the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding Business Day is not more than five (5) Business Days prior to such Term SOFR Determination Day.

"<u>Trade Date</u>" has the meaning set forth in Section 1.03.

"<u>Transaction Schedule</u>" has the meaning set forth in the introductory section of this Agreement.

"<u>UCC</u>" means the Uniform Commercial Code in effect in the State of New York.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the applicable Benchmark Replacement Adjustment; *provided* that, if the Unadjusted Benchmark Replacement as so determined would be less than zero, the Unadjusted Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.

"<u>Unfunded Exposure Account</u>" means the account established by the Securities Intermediary and set forth on the Transaction Schedule for the deposit of funds used to cash collateralize the Unfunded Exposure Amount and any successor accounts established in connection with the resignation or removal of the Securities Intermediary.

"<u>Unfunded Exposure Amount</u>" means, on any date of determination, with respect to any Delayed Funding Term Loan, an amount equal to the aggregate amount of all unfunded commitments associated with such Delayed Funding Term Loan.

"<u>Unfunded Exposure Shortfall</u>" means, on any date of determination, an amount equal to the greater of (i) 0 and (ii) the aggregate Unfunded Exposure Amount for all Portfolio Investments *minus* the sum of (x) the amounts on deposit in the Unfunded Exposure Account and (y) 2.5% of the Collateral Principal Amount.

"<u>USD</u>" and "<u>U.S.$</u>" means United States dollars.

"<u>U.S. Person</u>" means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

"<u>U.S. Tax Compliance Certificate</u>" has the meaning set forth in Section 3.03(f).

"<u>Withholding Agent</u>" means the Company and the Administrative Agent.

"<u>Working Capital Revolver</u>" means a revolving lending facility secured on a first lien basis solely by all or a portion of the current assets of the related obligor, which current assets subject to such security interest do not constitute a material portion of the obligor's enterprise value.

67958248. v2

------

ARTICLE I<br>THE PORTFOLIO INVESTMENTS

SECTION 1.01.<u>Purchases of Portfolio Investments</u>

. On the Effective Date, the Company shall acquire the Initial Portfolio Investments from the MPA Seller pursuant to the Participation Agreement. From time to time during the Reinvestment Period the Company may Purchase additional Portfolio Investments, or request that Portfolio Investments be Purchased for the Company's account, all on and subject to the terms and conditions set forth herein.

SECTION 1.02.<u>Procedures for Purchases and Related Advances</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Timing of Notices of Acquisition</u>. No later than five (5) Agent Business Days (or such shorter period as the Administrative Agent may agree in its sole discretion) before the date on which the Company proposes that a binding commitment to acquire any Portfolio Investment (other than an Initial Portfolio Investment) be made by it or for its account (a "<u>Purchase Commitment</u>"), the Portfolio Manager, on behalf of the Company, shall deliver to the Administrative Agent a notice of acquisition (a "<u>Notice of Acquisition</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Contents of Notices of Acquisition</u>. Each Notice of Acquisition shall consist of one or more electronic submissions to the Administrative Agent (in such format and transmitted in such a manner as the Administrative Agent, the Portfolio Manager and the Company may reasonably agree (which shall initially be the format and include the information regarding such Portfolio Investment identified on Schedule 2)), and shall be accompanied by such other information as the Administrative Agent may reasonably request to the extent such information is reasonably available to the Portfolio Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Eligibility of Portfolio Investments</u>. The Administrative Agent shall have the right, on behalf of all Lenders, to request additional information regarding any proposed Portfolio Investment. The Administrative Agent shall notify the Portfolio Manager and the Company of its approval or failure to approve each Portfolio Investment proposed to be acquired pursuant to a Notice of Acquisition (and, if approved, an initial determination of the Market Value for such Portfolio Investment) no later than the fifth (5<sup>th</sup>) Agent Business Day succeeding the date on which it receives such Notice of Acquisition and any information reasonably requested in connection therewith; *provided* that (i) any Initial Portfolio Investment shall be deemed to be approved by the Administrative Agent and (ii) the failure of the Administrative Agent to notify the Portfolio Manager and the Company of its approval in accordance with this Section 1.02(c) shall be deemed to be a disapproval of such proposed acquisition. Each approval granted by the Administrative Agent for the purchase of a proposed Portfolio Investment shall remain effective for a period of thirty (30) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The failure of the Administrative Agent to approve the acquisition of a Portfolio Investment will not prohibit the Company from acquiring such Portfolio Investment (subject to the conditions set forth in Section 1.03); *provided* that any Portfolio Investment not so approved prior to its Trade Date shall be deemed to be an Ineligible Investment until such later date (if any) on which such Portfolio Investment is so approved.

SECTION 1.03.<u>Conditions to Purchases</u>. No Purchase Commitment or Purchase shall be entered into or made unless each of the following conditions is satisfied as of the date on which such Purchase Commitment is entered into or such Purchase would otherwise be made (such Portfolio Investment's "<u>Trade Date</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)the information contained in the Notice of Acquisition accurately describes, in all material respects, such Portfolio Investment and such Portfolio Investment satisfies the eligibility criteria set forth in Schedule 3 (the "<u>Eligibility Criteria</u>");

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)with respect to a Purchase, the proposed Settlement Date for such Portfolio Investment is not later than (i) in the case of a Loan, the date that is fifteen (15) Business Days (or such longer period of time agreed to by the Administrative Agent in its sole discretion) after such Trade Date or (ii) in the case of any other Portfolio Investment, the date that is three (3) Business Days (or such longer period of time agreed to by the Administrative Agent in its sole discretion) after such Trade Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)no Market Value Event has occurred and no Event of Default or event that, with notice or lapse of time or both, would constitute an Event of Default (a "<u>Default</u>"), has occurred and is continuing (unless, in the case of a Default, such Default would be cured by such asset purchase and no other Market Value Event, Default or Event of Default has occurred and is continuing), and the Reinvestment Period has not otherwise ended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)unless any of Market Value Event or an Event of Default has occurred and is continuing, immediately after giving pro forma effect to the Purchase of such Portfolio Investment and the related Advance, the Borrowing Base Test is satisfied or, if the Borrowing Base Test was not satisfied immediately prior to such Purchase, the Borrowing Base Test will be improved by such Purchase.

In addition, it shall be a condition to the first Purchase Commitment in respect of any Purchase made by the Company pursuant to the Sale Agreement that the Administrative Agent has received an opinion of counsel of nationally recognized counsel in form and substance reasonably satisfactory to it with respect to certain true sale matters relating to Purchases by the Company under the Sale Agreement.

If the above conditions to a Purchase Commitment or a Purchase are satisfied or waived by the Administrative Agent, the Portfolio Manager shall determine, in consultation with the Administrative Agent and with notice to the Lenders and the Collateral Administrator, the date on which such Purchase (if any) shall settle (the "<u>Settlement Date</u>" for such Portfolio Investment). Promptly following the Settlement Date for a Portfolio Investment and its receipt thereof (and at other times thereafter promptly following the written request of the Administrative Agent (including via email)), the Collateral Administrator shall provide to the Administrative Agent, to the extent received from the Company, a copy of the executed assignment agreement pursuant to which such Portfolio Investment was assigned, sold or otherwise transferred to the Company.

SECTION 1.04.<u>Sales of Portfolio Investments</u>

. The Company will not sell, transfer or otherwise dispose of any Portfolio Investment or any other asset without the prior consent of the Administrative Agent (acting at the direction of the Required Lenders), except that, subject to Section 6.02(w), the Company may sell any Portfolio Investment (including any Ineligible Investment) or other asset without the prior consent of the Administrative Agent so long as, (x) after giving effect thereto, no Market Value Trigger Event has occurred (unless such sale is made in connection with a Market Value Cure), no Default has occurred and is continuing (unless such sale is made in connection with a Market Value Cure), and no Event of Default has occurred and is continuing and (y) the sale of such asset by the Company shall be on an arm's-length basis at fair market value and in accordance with the Portfolio Manager's standard market practices. In addition, (a) within two (2) Business Days (or such longer period as the Administrative Agent may agree in its sole discretion) of any Delayed Funding Term Loan with an unfunded commitment becoming an Ineligible Investment, the Company, subject to clauses (x) and (y) in the immediately preceding sentence, shall sell such Delayed Funding Term Loan and shall pay any amount payable in connection with such sale and (b) upon the request of the Administrative Agent within two (2) Business Days (or such longer period as the Administrative Agent may agree in its sole discretion) of any other Portfolio Investment

67958248. v2

------

becoming an Ineligible Investment, the Company shall, subject to clauses (x) and (y) in the immediately preceding sentence, sell, distribute or transfer such Portfolio Investment (which, for the avoidance of doubt and notwithstanding any provision of the Loan Documents to the contrary, may be effected by way of a cashless distribution to the Parent subject to the prior written consent of the Administrative Agent in its sole discretion).

Notwithstanding anything in this Agreement to the contrary (but subject to this Section 1.04): (i) following the occurrence and during the continuance of an Event of Default, neither the Company nor the Portfolio Manager on its behalf shall have any right to cause the sale, transfer or other disposition of a Portfolio Investment or any other asset (including, without limitation, the transfer of amounts on deposit in the Collateral Accounts) without the prior written consent of the Administrative Agent (which consent may be granted or withheld in the sole discretion of the Administrative Agent), (ii) following the occurrence of a Market Value Event, the Company shall use commercially reasonable efforts to sell Portfolio Investments (individually or in lots, including a lot comprised of all of the Portfolio Investments) at the sole direction of, and in the manner (including, without limitation, the time of sale, sale price, principal amount to be sold and purchaser) required by the Administrative Agent (*provided* that the Administrative Agent shall only require sales at the direction of the Required Lenders and at least equal to the then-current fair market value and in accordance with the Administrative Agent's standard market practices) and the proceeds from such sales shall be used to prepay the Advances outstanding hereunder and (iii) following the occurrence of a Market Value Event, the Portfolio Manager shall have no right to act on behalf of, or otherwise direct, the Company, the Administrative Agent, the Collateral Agent or any other Person in connection with a sale of Portfolio Investments pursuant to any provision of this Agreement except with the prior written consent of the Administrative Agent. Following the occurrence of a Market Value Event and in connection with the sale of any Portfolio Investment by or at the direction of the Administrative Agent, the Portfolio Manager shall take such actions as the Administrative Agent may reasonably request in writing (including via email) to facilitate the consummation of such sale including, without limitation and if so requested, using commercially reasonable efforts to cause any of its Affiliates acting as administrative agent with respect to such Portfolio Investment to execute and deliver an assignment agreement in respect of such Portfolio Investment naming the Administrative Agent or such other Person designated by it as assignee.

Any prepayments made pursuant to this paragraph shall automatically reduce the Financing Commitments as provided in Section 4.07(c).

In connection with any sale of Portfolio Investments required by the Administrative Agent following the occurrence of a Market Value Event, the Administrative Agent or a designee of the Administrative Agent shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)notify the Company at the Designated Email Notification Address promptly upon distribution of bid solicitations regarding the sale of such Portfolio Investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)use commercially reasonable efforts to solicit a bid for such Portfolio Investments from the Designated Independent Dealer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)direct the Company to sell such Portfolio Investments to the Designated Independent Dealer if the Designated Independent Dealer provides the highest bid in the case where bids are received in respect of the sale of such Portfolio Investments, it being understood that if the Designated Independent Dealer provides a bid to the Administrative Agent that is the highest bona fide bid to purchase a Portfolio Investment on a line-item basis where such Portfolio Investment is part of a pool of Portfolio Investments for which there is a bona fide bid on a pool basis proposed to be accepted by the Administrative Agent (in its sole discretion), then the Administrative Agent shall accept any such line-

67958248. v2

------

item bid only if such line-item bid (together with any other line-item bids by the Designated Independent Dealer or any other bidder for other Portfolio Investments in such pool) is greater than the bid on a pool basis.

For purposes of this paragraph, the Administrative Agent shall be entitled to disregard as invalid any bid submitted by the Designated Independent Dealer if, in the Administrative Agent's judgment (acting reasonably):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;the Designated Independent Dealer is ineligible to accept assignment or transfer of the relevant Portfolio Investments or any portion thereof, as applicable, substantially in accordance with the then-current market practice in the principal market for the relevant Portfolio Investments; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;the Designated Independent Dealer would not, through the exercise of its commercially reasonable efforts, be able to obtain any consent required under any agreement or instrument governing or otherwise relating to the relevant Portfolio Investments to the assignment or transfer of the relevant Portfolio Investments or any portion thereof, as applicable, to it; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)such bid is not bona fide, including, without limitation, due to (x) the insolvency of the Designated Independent Dealer or (y) the inability, failure or refusal of the Designated Independent Dealer to settle the purchase of the relevant Portfolio Investments or any portion thereof, as applicable, or otherwise settle transactions in the relevant market or perform its obligations generally.

In connection with any sale of a Portfolio Investment directed by the Administrative Agent pursuant to this Section 1.04 and the application of the net proceeds thereof, the Company hereby appoints the Administrative Agent as the Company's attorney-in-fact (it being understood that the Administrative Agent shall not be deemed to have assumed any of the obligations of the Company by this appointment), with full authority in the place and stead of the Company and in the name of the Company to effectuate the provisions of this Section 1.04 (including, without limitation, the power to execute any instrument which the Administrative Agent or the Required Lenders may deem necessary or advisable to accomplish the purposes of this Section 1.04 or any direction or notice to the Collateral Agent in respect of the application of net proceeds of any such sales). None of the Administrative Agent, the Lenders, the Collateral Administrator, the Securities Intermediary, the Collateral Agent or any Affiliate of any thereof shall incur any liability to the Company, the Portfolio Manager, any Lender or any other Person in connection with any sale effected at the direction of the Administrative Agent in accordance with this Section 1.04, including, without limitation, as a result of the price obtained for any Portfolio Investment, the timing of any sale or sales of Portfolio Investments or the notice or lack of notice provided to any Person in connection with any such sale, so long as, in the case of the Administrative Agent only, any such sale does not violate Applicable Law.

Notwithstanding the foregoing, after giving pro forma effect to any transaction pursuant to this Section 1.04, (i) the value of the Parent Portfolio Investments substituted or sold by the Company to the Parent may not exceed 20% of the Parent Purchased Principal Balance as of the date of such sale or dividend, and (ii) the value of the Parent Portfolio Investments that are Defaulted Obligations substituted or sold by the Company to the Parent may not exceed 10% of the Parent Purchased Principal Balance measured as of the date of such sale or dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Company and the Administrative Agent (in such number of copies as shall be reasonably requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement

67958248. v2

------

(and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent), executed originals of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Company or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)if a payment made to a Lender under any Loan Document would be subject to withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Company and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Company or the Administrative Agent such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Company or the Administrative Agent as may be necessary for the Company and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification, provide such successor form, or promptly notify the Company and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)The Administrative Agent and any successor thereto shall, upon becoming a party under this Agreement, deliver to the Company an electronic copy of either (i) an IRS Form W-9 or any successor thereto or (ii) with respect to payments received on account of any Lender, a U.S. branch withholding certificate on IRS Form W-8IMY or any successor thereto evidencing its agreement with the Company to be treated as a U.S. Person for U.S. federal withholding purposes, as applicable. The Administrative Agent represents to the Company that it is a "U.S. person" and a "financial institution" within the meaning of Treasury Regulations Section 1.1441-1 and a "U.S. financial institution" within the meaning of Treasury Regulations Section 1.1471-3T and that it will comply with its obligations to withhold under Section 1441 and FATCA.

SECTION 1.05.<u>Certain Assumptions relating to Portfolio Investments</u>

. For purposes of all calculations hereunder, any Portfolio Investment for which the trade date in respect of a sale thereof by the Company has occurred, but the settlement date for such sale has not occurred, shall be considered to be owned by the Company until such settlement date.

SECTION 1.06.<u>Additional Equity Contributions</u>

. Notwithstanding anything in this Agreement to the contrary, the Parent may, but shall have no obligation to, at any time or from time to time make a capital contribution to the Company for any purpose, including for the purpose of curing any Default or Event of Default, in connection with a Market Value Cure, satisfying any Borrowing Base Test, enabling the acquisition or sale of any Portfolio Investment or satisfying any conditions under Section 2.04. Each contribution shall either be made (a) in cash, (b) by assignment and contribution of Cash Equivalents and/or (c) by assignment and contribution of a Portfolio Investment that satisfies all of the Eligibility Criteria and could otherwise be sold to the Company in compliance with this Agreement.

SECTION 1.07.<u>Currency Equivalents</u>

.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in clause (b) and Section 4.06(b), for purposes of all valuations and calculations under the Loan Documents, (i) the principal amount of all Portfolio Investments denominated in a Permitted Non-USD Currency, (ii) proceeds denominated in a Permitted Non-USD Currency on deposit in any Permitted Non-USD Currency Account and (iii) for the purposes of Net Advances and the Borrowing Base Test, the outstanding aggregate principal amount of Advances denominated in a Permitted Non-USD Currency shall be calculated into the Dollar Equivalent at the Spot Rate in accordance with the definition of such term in consultation with the Administrative Agent on the applicable date of valuation or calculation, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in Section 4.06(b), for purposes of determining (i) whether the amount of any Advance, together with all other Advances then outstanding or to be made at the same time as such Advances, would exceed the aggregate amount of the Financing Commitments, (ii) the aggregate unutilized amount of the Financing Commitments and (iii) the limitations on the portion of the Financing Limit and the Financing Commitment that may be utilized in a Permitted Non-USD Currency, the outstanding principal amount of any Advances that are denominated in any Permitted Non-USD Currency shall be deemed to be the Dollar Equivalent of the amount of the Permitted Non-USD Currency of such Advances determined as of the date such Advances were made. Wherever in this Agreement in connection with an Advance, an amount, such as a required minimum or multiple amount, is expressed in USD, but such Advance is denominated in a Permitted Non-USD Currency, such amount shall be the Dollar Equivalent of such Permitted Non-USD Currency amount (rounded to the nearest 1,000 units of the applicable Permitted Non-USD Currency).

SECTION 1.08.<u>[Reserved]</u>.

ARTICLE II<br>THE ADVANCES

SECTION 2.01.<u>Financing Commitments</u>

. Subject to the terms and conditions set forth herein, only during the Reinvestment Period, each Lender hereby severally agrees to make available to the Company Advances, in a Currency (which, in the case of an Advance made to Purchase a Portfolio Investment, shall be the Currency in which such Portfolio Investment is denominated), in an aggregate amount outstanding not exceeding the amount of such Lender's Financing Commitment (or such Lender's Financing Commitment relating to the applicable Permitted Non-USD Currency); *provided* that it is understood and agreed that no Lender shall be required to make any Advance in a Permitted Non-USD Currency until such time as the Administrative Agent confirms in writing (which may be by email) to the Company, the Portfolio Manager, the Collateral Agent and the Securities Intermediary that the Permitted Non-USD Currency Account Opening Requirements with respect to the applicable Permitted Non-USD Currency Account are satisfied. The Financing Commitments shall terminate on the earliest of (a) the last day of the Reinvestment Period, (b) the Maturity Date and (c) the occurrence of a Market Value Event.

SECTION 2.02.<u>[Reserved]</u>

.

SECTION 2.03.<u>Advances; Use of Proceeds</u>

.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Subject to the satisfaction or waiver of the conditions to the Purchase of a Portfolio Investment set forth in Section 1.03 and/or an Advance set forth in Section 2.05 as of (i) the related Trade Date (in the case of the conditions to Purchase) and (ii) the Advance date (in the case of the conditions to Advance), the Lenders will (ratably in accordance with their respective Financing Commitments) make the applicable Advance available to the Company on the related Settlement Date (or otherwise on the related Advance date if no Portfolio Investment is being acquired on such date) as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except as expressly provided herein, the failure of any Lender to make any Advance required hereunder shall not relieve any other Lender of its obligations hereunder. If any Lender shall fail to provide any Advance to the Company required hereunder, then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender's obligations hereunder until all such unsatisfied obligations are fully paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Subject to Section 2.03(f), the Company shall use the proceeds of the Advances received by it hereunder (i) to purchase the Portfolio Investments identified in the related Notice of Acquisition, (ii) to make advances to the obligor of Delayed Funding Term Loans in accordance with the underlying instruments relating thereto or (iii) to make Permitted Distributions; *provided* that, if the proceeds of an Advance are deposited in the Collection Account or a Permitted Non-USD Currency Collection Account as provided in Section 3.01 prior to or on the Settlement Date for any Portfolio Investment but the Company is unable to Purchase such Portfolio Investment on the related Settlement Date, or if there are proceeds of such Advance remaining after such Purchase, then, subject to Section 3.01(a), upon written notice from the Portfolio Manager the Collateral Agent shall apply such proceeds as provided in Section 4.05; *provided further* that, the proceeds of the Advances on the First Amendment Date in the amount of the Rollover Amount (as defined in the First Amendment) shall be used for the "cashless roll" settlement of the Rollover Facility. The proceeds of the Advances shall not be used for any other purpose except to the extent expressly set forth in the Effective Date Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)With respect to any Advance, the Portfolio Manager shall, on behalf of the Company, submit a request substantially in the form of Exhibit A (a "<u>Request for Advance</u>") to the Lenders and the Administrative Agent, with a copy to the Collateral Agent and the Collateral Administrator, not later than 2:00 p.m. New York City time, one (1) Business Day (or, in the case of an Advance denominated in AUD, three (3) Business Days) prior to the Business Day specified as the date on which such Advance shall be made and, upon receipt of such request, the Lenders shall make such Advances in accordance with the terms set forth in Section 3.01. Any requested Advance shall be in an amount such that, after giving effect thereto and the related purchase (if any) of the applicable Portfolio Investment(s), the Borrowing Base Test is satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)[Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)If, on any date of determination prior to the second Business Day before the last day of the Reinvestment Period, there exists an Unfunded Exposure Shortfall, the Company shall (i) request an Advance and, if the conditions to such Advance are satisfied and such Advance is made in accordance with this Agreement, deposit the proceeds thereof in the Unfunded Exposure Account and/or (ii) deposit cash from other sources into the Unfunded Exposure Account in an aggregate amount at least equal to the aggregate Unfunded Exposure Shortfall. If two Business Days prior to the end of the Reinvestment Period there exists any Unfunded Exposure Amount, then the Portfolio Manager, on behalf of the Company, shall be deemed to have requested an Advance on such date, and the Lenders shall make a corresponding Advance on the last day of the Reinvestment Period (with written notice to the Collateral Administrator by the Administrative Agent) in accordance with Article III in an amount, to be deposited in the Unfunded Exposure Account, equal to the least of (i) the aggregate Unfunded Exposure Amount, (ii) the Financing Commitments in excess of the aggregate principal amount of the outstanding Advances and (iii) an amount such that the Borrowing Base Test is satisfied after giving effect to such Advance; *provided* that, if the Company provides evidence to the Administrative Agent that it has cash from other sources that is available in accordance with the terms of this Agreement to make any such future advances in respect of any Delayed Funding Term Loan, then the amount of any such Advance shall be reduced by the amount of such funds. After giving effect to such Advance, the Company shall cause the proceeds of

67958248. v2

------

such Advance and cash from other sources that are available in accordance with the terms of this Agreement in an amount (together with amounts already on deposit in the Unfunded Exposure Account) equal to the aggregate Unfunded Exposure Amount to be deposited in the Unfunded Exposure Account.

SECTION 2.04.<u>Conditions to Effective Date</u>. Notwithstanding anything to the contrary herein, this Agreement shall not become effective until the date (the "<u>Effective Date</u>") on which each of the following conditions is satisfied (or waived by the Administrative Agent in its sole discretion):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Executed Counterparts</u>. The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence reasonably satisfactory to the Administrative Agent (which may include electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Loan Documents</u>. The Administrative Agent (or its counsel) shall have received reasonably satisfactory evidence that the Sale Agreement, the Account Control Agreement, the Participation Agreement and the Portfolio Management Agreement have been executed and are in full force and effect, and that the initial grant of Participation Interests contemplated by the Participation Agreement shall have been consummated in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Opinions</u>. The Administrative Agent (or its counsel) shall have received one or more reasonably satisfactory written opinions of counsel for the Company, the Portfolio Manager, the MPA Seller and the Seller, covering such matters relating to the transactions contemplated hereby and by the other Loan Documents as the Administrative Agent shall reasonably request (including, without limitation, certain true participation matters relating to the Participation Agreement and certain non-consolidation matters).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Corporate Documents</u>. The Administrative Agent (or its counsel) shall have received such certificates of resolutions or other action, incumbency certificates and/or other certificates of officers of the Company, the MPA Seller, the Seller and the Portfolio Manager as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each officer thereof or other Person authorized to act in connection with this Agreement and the other Loan Documents, and such other documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the Company, the MPA Seller, the Seller and the Portfolio Manager and any other legal matters relating to the Company, the Parent, the Portfolio Manager, this Agreement or the transactions contemplated hereby, all in form and substance satisfactory to the Administrative Agent and its counsel; *provided* that the Portfolio Manager shall not be required to provide a copy of its operating agreement to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Payment of Fees, Etc</u>. The Administrative Agent, the Lenders, the Collateral Agent and the Collateral Administrator shall have received all fees and other amounts due and payable by the Company in connection herewith on or prior to the Effective Date, including the fee payable pursuant to Section 4.03(e), and, to the extent invoiced, reimbursement or payment of all reasonable and documented out-of-pocket expenses (including legal fees and expenses) required to be reimbursed or paid by the Company hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>PATRIOT Act</u>, <u>Etc.</u> (i) To the extent requested by the Administrative Agent, the Collateral Agent or any Lender, the Administrative Agent, Collateral Agent or such Lender, as the case may be, shall have received all documentation and other information required by regulatory authorities under the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "<u>PATRIOT Act</u>") and other applicable "know your customer" and anti-money laundering rules and regulations and (ii) to the extent the Company qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, at least two Business Days prior to the Effective Date, any Lender that has requested, in a written notice to the Company at least 10 days

67958248. v2

------

prior to the Effective Date, a Beneficial Ownership Certification in relation to the Company shall have received such Beneficial Ownership Certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Filings</u>. Copies of proper financing statements, as may be necessary or, in the opinion of the Administrative Agent, desirable under the UCC of all appropriate jurisdictions or any comparable law to perfect the security interest of the Collateral Agent on behalf of the Secured Parties in all Collateral in which an interest may be pledged hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Certain Acknowledgements</u>. The Administrative Agent shall have received (i) UCC, tax and judgment lien searches, bankruptcy and pending lawsuit searches or equivalent reports or searches indicating that there are no effective lien notices or comparable documents that name the Company as debtor and that are filed in the jurisdiction in which the Company is organized and (ii) a UCC lien search indicating that there are no effective lien notices or comparable documents that name the MPA Seller or the Seller as debtor which cover any of the Portfolio Investments (other than any lien notices with respect to which the underlying lien will be released in connection with the transfers contemplated by the Participation Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Officer's Certificate</u>. The Administrative Agent (or its counsel) shall have received a certificate of an officer of the Company, certifying that the conditions set forth in Sections 2.05(4) and 2.05(6) have been satisfied on and as of the Effective Date.

SECTION 2.05.<u>Conditions to Advances</u>

. No Advance shall be made unless each of the following conditions is satisfied as of the proposed date of such Advance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)the Effective Date shall have occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)the Company shall have delivered a Request for Advance in accordance with Section 2.03(d);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)no Market Value Event has occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)no Event of Default or Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)the Reinvestment Period has not ended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)all of the representations and warranties contained in Article VI and in any other Loan Document shall be true and correct in all material respects (or with respect to such representations and warranties which by their terms contain materiality qualifiers, shall be true and correct), in each case on and as of the date of such Advance, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (or with respect to such representations and warranties which by their terms contain materiality qualifiers, shall be true and correct) as of such earlier date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)after giving pro forma effect to such Advance (and any related Purchase) hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;the Borrowing Base Test is satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;the aggregate principal balance of Advances then outstanding will not exceed the limit for Advances set forth in the Transaction Schedule; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;in the case of an Advance made in connection with a Purchase, the amount of such Advance shall be not less than U.S.$1,000,000.

67958248. v2

------

If the above conditions to an Advance are satisfied or waived by the Administrative Agent, the Portfolio Manager shall determine, in consultation with the Administrative Agent and with notice to the Lenders and the Collateral Administrator, the date on which any Advance shall be provided.

SECTION 2.06.<u>[Reserved]</u>.

ARTICLE III<br>ADDITIONAL TERMS APPLICABLE TO THE ADVANCES

SECTION 3.01.<u>The Advances</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Making the Advances</u>. If the Lenders are required to make an Advance to the Company as provided in Section 2.03, then each Lender shall make such Advance in the applicable Currency on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the Collateral Agent for deposit to the Principal Collection Account (or, in the case of Advances denominated in a Permitted Non-USD Currency, the applicable Permitted Non-USD Currency Collection Account); *provided* that it is understood and agreed that no Lender shall be required to make any Advance in a Permitted Non-USD Currency until such time as the Administrative Agent confirms in writing (which may be by email) to the Company, the Portfolio Manager, the Collateral Agent and the Securities Intermediary that the Permitted Non-USD Currency Account Opening Requirements with respect to the applicable Permitted Non-USD Currency Account are satisfied; and *provided further,* that the Company hereby directs the Lenders to pay proceeds of the Advance to be made on the Effective Date (to the extent that such Advance is made under this Agreement upon satisfaction of the conditions thereto) in the amounts specified in the Effective Date Letter, in accordance with the instructions set forth in the Effective Date Letter. Each Lender at its option may make any Advance by causing any domestic or foreign branch or Affiliate of such Lender to make such Advance; *provided* that any exercise of such option shall not affect the obligation of the Company to repay such Advance in accordance with the terms of this Agreement. Subject to the terms and conditions set forth herein, the Company may borrow and prepay Advances. The Company may, during the Reinvestment Period, reborrow Advances in an amount up to (x) the aggregate Financing Commitments of the Lenders on such date minus (y) the Minimum Funding Amount, subject to the terms and conditions set forth herein. Except as set forth in the immediately preceding sentence, once prepaid, Advances may not be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Payment of the proceeds of Advances by the Lenders in accordance with the instructions set forth in the Effective Date Letter as provided in the immediately preceding paragraph will constitute the making of the applicable Advances (or portions thereof, as applicable) to the Company for all purposes and all obligations of the Lenders to make such Advance shall be satisfied thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Interest on the Advances</u>. Subject to Section 3.01(h), all outstanding Advances shall bear interest (from and including the date on which such Advance is made) at a per annum rate equal to the applicable Benchmark for each Calculation Period in effect *plus* the Applicable Margin for Advances set forth on the Transaction Schedule; *provided* that, following the occurrence and during the continuance of an Event of Default, all outstanding Advances and any unpaid interest thereon shall bear interest (from and including the date of such Event of Default) at a per annum rate equal to the applicable Benchmark for each Calculation Period in effect *plus* the Adjusted Applicable Margin; *provided further* that, for purposes of this Section 3.01(b), if the aggregate amount of outstanding Advances at any time is less than the Minimum Funding Amount, the amount of outstanding Advances at such time shall be deemed to equal the Minimum Funding Amount and the interest rate in respect of the positive difference between the Minimum Funding Amount and the aggregate outstanding amount of the Advances shall be deemed to be the Applicable Margin for Advances set forth on the Transaction Schedule *minus* the per annum rate payable in respect of commitment fees pursuant to Section 4.03(d) (plus, if applicable pursuant to the first proviso above, the Adjusted Applicable Margin). For purposes of the foregoing, the Benchmark for each Calculation Period with respect to Daily Simple SONIA shall be the weighted

67958248. v2

------

average of such Benchmark as determined on each day during such Calculation Period in respect of Advances denominated in GBP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Evidence of the Advances</u>. Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Company to such Lender resulting from each Advance made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder and the applicable Currency thereof. The Administrative Agent, acting solely for this purpose as an agent of the Company, shall maintain at one of its offices in the United States a register (the "<u>Register</u>") in which it shall record (1) the name and address of each Lender, (2) the amount of each Advance made hereunder, (3) the amount of any principal or interest due and payable or to become due and payable from the Company to each Lender hereunder and (4) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender's share thereof. The entries made in the Register maintained pursuant to this paragraph (c) shall be conclusive absent manifest error; *provided* that the failure of any Lender or the Administrative Agent to maintain such Register or any error therein shall not in any manner affect the obligation of the Company to repay the Advances in accordance with the terms of this Agreement.

Any Lender may request that Advances made by it be evidenced by a promissory note. In such event, the Company shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent (such approval not to be unreasonably withheld, conditioned or delayed). Thereafter, the Advances evidenced by such promissory note and interest thereon shall at all times be represented by one or more promissory notes in such form payable to the payee named therein (or, to such payee and its registered assigns).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Pro Rata Treatment</u>. Except as otherwise provided herein, all borrowings of, and payments in respect of, the Advances shall be made on a *pro rata* basis by or to the Lenders in accordance with their respective portions of the Financing Commitments in respect of Advances held by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Illegality</u>. Notwithstanding any other provision of this Agreement, if any Lender or the Administrative Agent shall notify the Company that the adoption of any law, rule or regulation, or any change therein or any change in the interpretation or administration thereof by any Governmental Authority charged with the interpretation or administration thereof, makes it unlawful, or any Governmental Authority asserts that it is unlawful, for a Lender or the Administrative Agent to perform its obligations hereunder to fund or maintain Advances hereunder (in the aggregate or in any applicable Currency), then (1) the obligation of such Lender or the Administrative Agent hereunder shall immediately be suspended (in the aggregate or with respect to the applicable Currency) until such time as such Lender or the Administrative Agent determines (in its sole discretion) that such performance is again lawful, (2) at the request of the Company, such Lender or the Administrative Agent, as applicable, shall use reasonable efforts (which will not require such party to incur a loss, other than immaterial, incidental expenses), until such time as the Advances are required to be prepaid as required under clause (3) below, to transfer all of its rights and obligations under this Agreement (in the aggregate or with respect to the applicable Currency) to another of its offices, branches or Affiliates with respect to which such performance would not be unlawful, and (3) if such Lender or the Administrative Agent is unable to effect a transfer under clause (2), then any outstanding Advances of such Lender (in the aggregate or with respect to such Currency, as applicable) shall be promptly paid in full by the Company (together with all accrued interest and other amounts owing hereunder) but not later than the earlier of (x) if the Company requests such Lender or the Administrative Agent to take the actions set forth in clause (2) above, 20 calendar days after the date on which such Lender or the Administrative Agent notifies the Company in writing that it is unable to transfer its rights and obligations under this Agreement as specified in such clause (2) and (y) such date as shall be mandated by law; *provided* that, to the extent that any such adoption or change makes it unlawful for the Advances to bear interest by reference to a particular Reference Rate, then the foregoing clauses (1) through (3) shall not apply and the Advances subject to such Reference Rate shall bear interest (from and after the last day of the Calculation Period ending immediately after such adoption or change) at a per annum rate equal to the Base Rate *plus* the Applicable Margin for Advances set forth on the Transaction Schedule.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)impose on any Lender any other condition, cost or expense (other than Taxes) affecting this Agreement or Advances made by such Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)subject any Lender or the Administrative Agent to any Taxes (other than (x) Indemnified Taxes and (y) Excluded Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;

and the result of any of the foregoing shall be to increase the cost to such Lender or the Administrative Agent of making, continuing, converting or maintaining any Advance or to reduce the amount of any sum received or receivable by such Lender or the Administrative Agent hereunder (whether of principal, interest or otherwise), then, upon request by such Lender or the Administrative Agent, the Company will pay to such Lender or the Administrative Agent, as the case may be, such additional amount or amounts as will compensate such Lender or the Administrative Agent, as the case may be, for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If any Lender determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement or the Advances made by such Lender to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy and liquidity) by an amount deemed by such Lender to be material, then from time to time the Company will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)A certificate of a Lender setting forth the amount or amounts necessary to compensate, and the basis for such compensation of, such Lender or its holding company, as the case may be, as specified in paragraph (i) or (ii) of this Section shall be delivered to the Company and shall be conclusive absent manifest error. The Company shall pay such Lender the amount shown as due on any such certificate within 10 Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Failure or delay on the part of any Lender or the Administrative Agent to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's or the Administrative Agent's right to demand such compensation; *provided* that the Company shall not be required to compensate a Lender or the Administrative Agent pursuant to this Section for any increased costs or reductions incurred more than 180 days prior to the date that such Lender or the Administrative Agent notifies the Company of the Change in Law giving rise to such increased costs or reductions and of such Lender's or the Administrative Agent's intention to claim compensation therefor; *provided further* that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Each of the Lenders and the Administrative Agent agrees that it will take such commercially reasonable actions as the Company may reasonably request that will avoid the need to pay, or reduce the amount of, any increased amounts referred to in this Section 3.01(f);

67958248. v2

------

*provided* that no Lender or the Administrative Agent shall be obligated to take any actions that would, in the reasonable opinion of such Lender or the Administrative Agent, be materially disadvantageous to such Lender or the Administrative Agent (including, without limitation, due to a loss of money). In no event will the Company be responsible for increased amounts referred to in this Section 3.01(f) which relates to any other entities to which any Lender provides financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)If any Lender (A) provides notice of unlawfulness or requests compensation under clause (e) above or this clause (f) or (B) defaults in its obligation to make Advances hereunder, then the Company may, at its sole expense and effort, upon written notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its interests, rights and obligations under this Agreement and the related transaction documents to an assignee identified by the Company that shall assume such obligations (whereupon such Lender shall be obligated to so assign), *provided* that, (x) such Lender shall have received payment of an amount equal to the outstanding principal of its Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder through the date of such assignment and (y) a Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Company to require such assignment and delegation cease to apply. No prepayment fee that may otherwise be due hereunder shall be payable to such Lender in connection with any such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>No Set-off or counterclaim</u>. Subject to Section 3.03, all payments to be made hereunder by the Company in respect of the Advances shall be made without set-off or counterclaim and in such amounts as may be necessary in order that every such payment (after deduction or withholding for or on account of any Taxes imposed by the jurisdiction in which the Company is organized or any political subdivision or taxing authority therein or thereof) shall not be less than the amounts otherwise specified to be paid under this Agreement.

SECTION 3.02.<u>Interest Rate Unascertainable, Inadequate or Unfair</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to clauses (b), (d), (e), (f) and (g) of this Section 3.02, if prior to the commencement of any Calculation Period for an Advance, (x) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining a Reference Rate or Term SOFR Reference Rate (including, without limitation, because such Reference Rate is not available or published on a current basis) for the applicable Currency and such Calculation Period; *provided* that, with respect to any Reference Rate, no Benchmark Transition Event shall have occurred at such time or (y) the Administrative Agent is advised by the Required Lenders that the applicable Reference Rate or Term SOFR Reference Rate for the applicable Currency and such Calculation Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Advances (or its Advance) for the applicable Currency and such Calculation Period; then the Administrative Agent shall give notice thereof to the Company, the Collateral Agent and the Lenders by telephone, telecopy or electronic mail as promptly as practicable thereafter and, until the Administrative Agent notifies the Company, the Collateral Agent and the Lenders that the circumstances giving rise to such notice no longer exist, any Advance denominated in such Currency made by the Lenders shall thereupon constitute a Base Rate Advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) of the definition of "Benchmark Replacement"

67958248. v2

------

with respect to USD for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (2) of the definition of "Benchmark Replacement" with respect to any Currency for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;[Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent will promptly notify the Company, the Collateral Agent and the Lenders of (i) any occurrence of a Benchmark Transition Event and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (f) below and (v) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 3.02, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 3.02.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including the Term SOFR Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative Agent may modify the definition of "Calculation Period" for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Calculation Period" for all Benchmark settings at or after such time to reinstate such previously removed tenor.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Upon the Company's receipt of notice of the commencement of a Benchmark Unavailability Period, the Company may revoke any request for an Advance in, conversion to or continuation of Advances in the applicable Currency to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Company will be deemed to have converted any request for an Advance into a request for a Base Rate Advance or conversion of an outstanding Advance to a Base Rate Advance.

SECTION 3.03.<u>Taxes</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Payments Free of Taxes</u>. All payments to be made hereunder by the Company in respect of the Advances and the Administrative Agency Fee shall be made without deduction or withholding for any Taxes, except as required by Applicable Law (including FATCA). If any Applicable Law (as determined in good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by an applicable Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Company shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Payment of Other Taxes by the Company</u>. Without duplication of other amounts payable by the Company under this Section, the Company shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Indemnification by the Company</u>. The Company shall indemnify each Lender, within 10 Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Lender or required to be withheld or deducted from a payment to such Lender and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Company by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Indemnification by the Lenders</u>. Each Lender shall indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Company has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Company to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of 10.06 relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Company to a Governmental Authority pursuant to this Section 3.03, the Company shall deliver to the

67958248. v2

------

Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Status of Secured Parties</u>. (i) Any Secured Party that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Company and the Administrative Agent, at the time or times reasonably requested by the Company or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Company or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Company or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Company or the Administrative Agent as will enable the Company or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 3.03(f) (ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender (it being understood that providing any information currently required by any U.S. federal income tax withholding form shall not be considered prejudicial to the position of a Recipient).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)any Lender that is a U.S. Person shall deliver to the Company and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent), an executed IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax; *provided, however*, that if the Lender is a disregarded entity for U.S. federal income tax purposes, it shall provide the appropriate withholding form of its owner (together with appropriate supporting documentation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)any Foreign Lender shall deliver to the Company and the Administrative Agent (in such number of copies as shall be reasonably requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, an executed IRS Form W-8BEN, IRS Form W-8BEN-E or applicable successor form establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, an IRS Form W-8BEN or IRS Form W-8BEN-E or any applicable successor form establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)an executed IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, is not a "10 percent shareholder" of the Company or the Parent within the meaning of Section 881(c)(3)(B) of the Code, and is not a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "<u>U.S. Tax Compliance Certificate</u>") and (y) an executed IRS Form W-8BEN, IRS Form W-8BEN-E or applicable successor form; or

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)to the extent a Foreign Lender is not the beneficial owner, an executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E or applicable successor form, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Treatment of Certain Refunds</u>. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 3.03 (including by the payment of additional amounts pursuant to this Section 3.03), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Delay in Requests</u>. The Company shall not be required to compensate a Lender pursuant to this Section for any Taxes or related costs suffered more than 180 days prior to the date that such Lender, as the case may be, notifies the Company of such Taxes or related costs, and of such Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such Taxes or related costs is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Survival</u>. Each party's obligations under this Section 3.03 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Financing Commitments, and the repayment, satisfaction or discharge of all obligations under any Loan Document.

ARTICLE IV<br>COLLECTIONS AND PAYMENTS

SECTION 4.01.<u>Interest Proceeds</u>

. The Company shall notify the obligor (or the relevant agent under the applicable underlying instruments) with respect to each Portfolio Investment to remit all amounts that constitute Interest Proceeds to the Interest Collection Account; *provided* that Interest Proceeds denominated in a Permitted Non-USD Currency shall be deposited into the applicable Permitted Non-USD Currency Interest Collection Account. To the extent Interest Proceeds are received other than by deposit into the Interest Collection Account or an applicable Permitted Non-USD Currency Interest Collection Account, the Company shall cause all Interest Proceeds on the Portfolio Investments to be deposited in the Interest Collection Account or the applicable Permitted Non-USD Currency Interest Collection Account or remitted to the Collateral Agent, and the Collateral Agent shall credit (or cause to be credited) to the Interest Collection Account all Interest Proceeds or the applicable Permitted Non-USD Currency Interest Collection Account received by it immediately upon receipt thereof in accordance with the written direction of the Portfolio Manager.

Interest Proceeds shall be retained in the Interest Collection Account or the applicable Permitted Non-USD Currency Interest Collection Account and held in cash and/or (other than in the case

67958248. v2

------

of the Permitted Non-USD Interest Collection Account in respect of AUD and Euros) invested (and reinvested) at the written direction of the Company (or the Portfolio Manager on its behalf) delivered to the Collateral Agent in dollar-denominated Cash Equivalents denominated in the applicable Currency selected by the Portfolio Manager (unless an Event of Default has occurred and is continuing or a Market Value Event has occurred, in which case, selected by the Administrative Agent) ("<u>Eligible Investments</u>"). Eligible Investments shall mature no later than the end of the then-current Calculation Period. In the absence of any written direction from the Company (or the Portfolio Manager on its behalf) or the Administrative Agent, as applicable, Interest Proceeds shall remain uninvested.

Interest Proceeds on deposit in the Interest Collection Account or an applicable Permitted Non-USD Currency Interest Collection Account shall be withdrawn by the Collateral Agent (at the written direction of the Company (or, following the occurrence and during the continuance of an Event of Default or following the occurrence of a Market Value Event, the Administrative Agent)) and applied (i) to make payments in accordance with this Agreement or (ii) to make Permitted Distributions or Permitted RIC Distributions in accordance with this Agreement.

SECTION 4.02.<u>Principal Proceeds</u>

. The Company shall notify the obligor (or the relevant agent under the applicable underlying instruments) with respect to each Portfolio Investment to remit all amounts that constitute Principal Proceeds to the Principal Collection Account; *provided* that Principal Proceeds denominated in a Permitted Non-USD Currency shall deposited into the applicable Permitted Non-USD Currency Principal Collection Account. To the extent Principal Proceeds are received other than by deposit into the Principal Collection Account or the applicable Permitted Non-USD Currency Principal Collection Account, the Company shall cause all Principal Proceeds received on the Portfolio Investments to be deposited in the Principal Collection Account or the applicable Permitted Non-USD Currency Principal Collection Account or remitted to the Collateral Agent, and the Collateral Agent shall credit (or cause to be credited) to the Principal Collection Account or the applicable Permitted Non-USD Currency Principal Collection Account all Principal Proceeds received by it immediately upon receipt thereof in accordance with the written direction of the Portfolio Manager.

All Principal Proceeds shall be retained in the Principal Collection Account or the applicable Permitted Non-USD Currency Principal Collection Account and held in cash and/or (other than in the case of the Permitted Non-USD Currency Principal Collection Account in respect of AUD and Euros) invested (and reinvested) at the written direction of the Administrative Agent in Eligible Investments selected by the Portfolio Manager (unless an Event of Default has occurred and is continuing or a Market Value Event has occurred, in which case, selected by the Administrative Agent). All investment income on such Eligible Investments shall constitute Interest Proceeds. In the absence of any written direction from the Company (or the Portfolio Manager on its behalf) or the Administrative Agent, as applicable, Interest Proceeds shall remain uninvested.

Principal Proceeds on deposit in the Principal Collection Account or an applicable Permitted Non-USD Currency Principal Collection Account shall be withdrawn by the Collateral Agent (at the written direction of the Company (or, following the occurrence and during the continuance of an Event of Default or following the occurrence of a Market Value Event, the Administrative Agent)) and applied (i) to make payments in accordance with this Agreement, (ii) towards the purchase price of Portfolio Investments purchased in accordance with this Agreement or (iii) to make Permitted Distributions or Permitted RIC Distributions in accordance with this Agreement, in each case with prior notice to the Administrative Agent.

67958248. v2

------

SECTION 4.03.<u>Principal and Interest Payments; Prepayments; Commitment Fee</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company shall pay the unpaid principal amount of the Advances (together with accrued interest thereon) to the Administrative Agent for the account of each Lender on the Maturity Date in accordance with the Priority of Payments and any and all cash in the Collateral Accounts shall be applied to the satisfaction of the Secured Obligations on the Maturity Date and on each Additional Distribution Date in accordance with the Priority of Payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Accrued and unpaid interest on the Advances shall be payable in arrears on each Interest Payment Date, each Additional Distribution Date and on the Maturity Date in accordance with the Priority of Payments; *provided* that (i) interest accrued pursuant to the first proviso to Section 3.01(b) shall be payable on demand and (ii) in the event of any repayment or prepayment of any Advances, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment. "<u>Interest Payment Date</u>" means the second Business Day after the last day of each Calculation Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)(i)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the requirements of this Section 4.03(c), the Company shall have the right from time to time to prepay outstanding Advances in whole or in part (A) on any Business Day after a Non-Call Termination Event occurs, (B) in connection with a Market Value Cure or (C) subject to the payment of the premium described in clause (ii) below, up to but not more than three times during any Calculation Period; *provided* that the Company may not prepay any outstanding Advances pursuant to this Section 4.03(c)(i)(C) during the Non-Call Period in an amount that would cause the aggregate outstanding principal amount of the Advances to be below the Minimum Funding Amount. The Company shall notify the Administrative Agent, the Collateral Agent and the Collateral Administrator by electronic mail of an executed document (attached as a .pdf or similar file) of any prepayment pursuant to Section 4.03(c)(i)(A) or Section 4.03(c)(i)(C) not later than 2:00 p.m., New York City time, two (2) Business Days before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of the Advances to be prepaid. Promptly following receipt of any such notice, the Administrative Agent shall advise the Lenders of the contents thereof. Except in connection with a Market Value Cure, each partial prepayment of outstanding Advances shall be in an amount not less than U.S.$2,000,000. Prepayments shall be accompanied by accrued and unpaid interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)(ii)&nbsp;&nbsp;&nbsp;&nbsp;Each prepayment or commitment reduction pursuant to <u>Section 4.03(c)(i)(C)</u> and <u>Section 4.07(a)</u> that is made after the Non-Call Period and during the period to and including October 4, 2026, whether in full or in part, shall, except if a Non-Call Termination Event has occurred, be accompanied by a premium equal to 1% of the principal amount of such prepayment or commitment reduction and, at the request of any Lender in respect of any prepayment on a date other than an Interest Payment Date, any costs incurred by it in respect of the breakage of its funding at the Term SOFR Rate for the related Calculation Period; provided that no such premium shall be payable with respect to any prepayment (or portion thereof) that does not exceed the positive difference (if any) of (x) the then-current aggregate outstanding principal amount of the Advances over (y) the then-current Minimum Funding Amount (the "<u>Excess Funded Amount</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Company agrees to pay to the Administrative Agent, for the account of each Lender, a commitment fee in accordance with the Priority of Payments which shall accrue during the period from and including the Effective Date to and excluding the last day of the Reinvestment Period, 0.55% per annum on the average daily unused amount of the Financing Commitment of such Lender during such period. Accrued commitment fees shall be payable in arrears on each Interest Payment Date, and on the date on which the Financing Commitments terminate. All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Company agrees to pay to the Lenders on the Effective Date an upfront fee in an aggregate amount specified in the Effective Date Letter. Once paid, such fees or any part thereof shall not be refundable under any circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Without limiting Section 4.03(c), the Company shall have the obligation from time to time to prepay outstanding Advances in whole or in part on any date with proceeds from sales of Portfolio Investments directed by the Administrative Agent pursuant to Section 1.04 and as set forth in Section 8.01(c). All such prepayments shall be accompanied by accrued and unpaid interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)The Company agrees to pay to the Administrative Agent the Administrative Agency Fee (as defined in the First Amendment Date Letter) in the amount and in accordance with the terms specified in the First Amendment Date Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Company agrees to pay to the Administrative Agent an upfront fee in the amount and in accordance with the terms specified in the Second Amendment Date Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) SECTION 4.04.<u>MV Cure Account</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company shall cause all cash received by it in connection with a Market Value Cure to be deposited in the MV Cure Account or remitted to the Collateral Agent, and the Collateral Agent shall credit to the MV Cure Account such amounts received by it (and identified in writing as such) immediately upon receipt thereof. Prior to the Maturity Date, all cash amounts in the MV Cure Account shall be invested in overnight Eligible Investments at the written direction of the Administrative Agent (as directed by the Required Lenders). In the absence of any written direction from the Administrative Agent, cash amounts in the MV Cure Account shall remain uninvested. All amounts contributed to the Company by Parent in connection with a Market Value Cure shall be paid free and clear of any right of chargeback or other equitable claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Amounts on deposit in the MV Cure Account may be withdrawn by the Collateral Agent (at the written direction of the Company (or, following the occurrence and during the continuance of an Event of Default or following the occurrence of a Market Value Event, the Administrative Agent)) and remitted to the Company with prior notice to the Administrative Agent (or, following the occurrence and during the continuance of an Event of Default or following the occurrence of a Market Value Event, to the Lenders for prepayment of Advances and reduction of Financing Commitment); *provided* that the Company may not direct any withdrawal from the MV Cure Account if the Borrowing Base Test is not satisfied (or would not be satisfied after such withdrawal).

SECTION 4.05.<u>Priority of Payments</u>

. On (w) each Interest Payment Date, (x) the Maturity Date, (y) each Agent Business Day after the occurrence of a Market Value Event and (z) each Agent Business Day after the occurrence of an Event of Default and the declaration of the Secured Obligations as due and payable (each date set forth in clauses (y) and (z) above, an "<u>Additional Distribution Date</u>"), the Collateral Agent shall distribute all amounts in the Collection Accounts and the Permitted Non-USD Currency Collection Accounts in the following order of priority (the "<u>Priority of Payments</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)to pay (i) *first*, amounts due or payable to the Collateral Agent, the Collateral Administrator and the Securities Intermediary hereunder and under the Account Control Agreement (including fees, out-of-pocket expenses and indemnities) up to a maximum amount under this subclause (i) of U.S.$100,000 on each Interest Payment Date, the Maturity Date and each Additional Distribution Date (in the case of any Additional Distribution Date or the Maturity Date, after giving effect to all payments of such amounts on any other Additional Distribution Date or Interest Payment Date occurring

67958248. v2

------

in the same calendar quarter); *provided* that if any such amount is not utilized during any calendar quarter then such unutilized amount may be applied during any of the three succeeding calendar quarters, and (ii) *second*, any other accrued and unpaid fees and out-of-pocket expenses (other than Administrative Agency Fees and the commitment fee payable to the Lenders, but including Lender indemnities) due hereunder and under the Account Control Agreement, up to a maximum amount under this clause (a) of U.S.$100,000 on each Interest Payment Date, the Maturity Date and each Additional Distribution Date (in the case of any Additional Distribution Date or the Maturity Date, after giving effect to all payments of such amounts on any other Additional Distribution Date or Interest Payment Date occurring in the same calendar quarter); *provided* that if any such amount is not utilized during any calendar quarter, then such unutilized amount may be applied during any of the three succeeding calendar quarters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)to pay accrued and unpaid interest due in respect of the Advances, any accrued and unpaid Administrative Agency Fees and any increased costs and commitment fees payable to the Lenders (pro rata based on amounts due);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)(i) on each Interest Payment Date, (1) first, to pay all prepayments of the Advances permitted or required under this Agreement (including any applicable premium) and (2) second, without duplication, after the Reinvestment Period from amounts on deposit in the Principal Collection Account, to pay principal of the Advances until the Advances are paid in full, and (ii) on the Maturity Date (and, if applicable, any Additional Distribution Date), to pay principal of the Advances until the Advances are paid in full;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)(i) prior to the end of the Reinvestment Period, at the direction of the Portfolio Manager, to fund the Unfunded Exposure Account up to the Unfunded Exposure Amount and (ii) after the Reinvestment Period, to fund the Unfunded Exposure Account up to the Unfunded Exposure Amount (without the requirement for any direction by the Portfolio Manager);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)to pay all amounts set forth in clause (a) above not paid due to the limitation set forth therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)to make any Permitted Distributions or Permitted RIC Distributions directed pursuant to this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)(i) on any Interest Payment Date, to deposit any remaining amounts in the Principal Collection Account or the applicable Permitted Non-USD Currency Principal Collection Account as Principal Proceeds and (ii) on the Maturity Date and any Additional Distribution Date, any remaining amounts to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Subject to Section 4.06(b), with respect to any amounts payable under Sections 4.05(a) through (g) above resulting from an Advance denominated in a Permitted Non-USD Currency, such amounts shall be paid using Interest Proceeds and/or Principal Proceeds denominated in such Permitted Non-USD Currency from the applicable Permitted Non-USD Currency Collection Account.

SECTION 4.06.<u>Payments Generally</u>

. (a) All payments to the Lenders or the Administrative Agent shall be made to the Administrative Agent at the account designated in writing to the Company and the Collateral Agent for further distribution by the Administrative Agent (if applicable). The Administrative Agent shall give written notice to the Collateral Agent and the Collateral Administrator (on which the Collateral Agent and the Collateral Administrator may conclusively rely) and the Portfolio Manager of the calculation of amounts payable to the Lenders in respect of the Advances and the amounts payable to the Portfolio Manager. At least two (2) Business Days prior to each Interest Payment Date, the Administrative Agent shall deliver an invoice to the Portfolio Manager, the Collateral Agent and the Collateral Administrator in respect of the interest due on such Interest Payment Date. All payments not made to the Administrative Agent for distribution to the Lenders shall be made as directed in writing by the Administrative Agent.

67958248. v2

------

Subject to Section 3.03 hereof, all payments by the Company hereunder shall be made without setoff or counterclaim. All payments hereunder shall be made in USD, other than payments of interest and principal made in respect of Advances denominated in a Permitted Non-USD Currency, which shall be made in such Permitted Non-USD Currency. All interest calculated using the Reference Rate (other than Term CORRA) or Term SOFR Reference Rate, as applicable, hereunder shall be computed on the basis of a year of 360 days and all interest calculated using the Base Rate and Term CORRA hereunder shall be computed on the basis of a year of 365 days in each case, payable for the actual number of days elapsed (including the first day but excluding the last day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If, at least two (2) Business Days prior to any Interest Payment Date or the Maturity Date or an Additional Distribution Date, the Collateral Administrator shall have notified the Company, the Collateral Agent and the Administrative Agent that the Company does not have a sufficient amount of funds in a Currency on deposit in the Collection Accounts or the Permitted Non-USD Currency Collection Accounts in respect of the applicable Currency that will be needed (1) to pay to the Lenders all of the amounts required to be paid in such Currency on such date and/or (2) to pay any expenses required to be paid in accordance with the Priority of Payments, in each case, in such Currency as required for such payment (a "<u>Currency Shortfall</u>"), then, so long as no Event of Default shall have occurred and is continuing and no Market Value Event has occurred, the Company (or the Portfolio Manager on its behalf) shall exchange (or shall direct the Collateral Agent to exchange) amounts (if any) in another Currency, in excess of the amounts needed (1) to pay to the Lenders all of the amounts required to be paid in such other Currency on such date and/or (2) to pay any expenses required to be paid in accordance with the Priority of Payments, in each case, in such other Currency as required for such payment, in any applicable Permitted Non-USD Currency Collection Account or Collection Account for the Currency in respect of which there is a Currency Shortfall in an amount necessary to cure such Currency Shortfall. Each such exchange shall occur no later than one Business Day prior to such Interest Payment Date or Additional Distribution Date or the Maturity Date, as applicable, and shall be made at the Spot Rate at the time of conversion. If for any reason the Company shall have failed to effect any such currency exchange by the Business Day prior to such date, then the Administrative Agent shall be entitled to (but shall not be obligated to) direct such currency exchange on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)At any time following the occurrence of a Market Value Event or if an Event of Default has occurred and is continuing, the Administrative Agent may in its sole discretion direct the Collateral Agent to exchange amounts attributable to the Company held in any Permitted Non-USD Currency Collection Account for USD, or to exchange amounts in any Collection Account for any Permitted Non-USD Currency, in each case, at the Spot Rate for application hereunder.

SECTION 4.07.<u>Termination or Reduction of Financing Commitments</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)After the Non-Call Period, the Company shall be entitled at its option, subject to the payment of any applicable premium described in Section 4.03(c)(ii), and upon three (3) Business Days' prior written notice to the Administrative Agent (with a copy to the Collateral Agent and the Collateral Administrator) to either (i) terminate the Financing Commitments in whole upon payment in full of all Advances, all accrued and unpaid interest, all accrued and unpaid Administrative Agency Fees, all applicable premium and all other Secured Obligations (other than unmatured contingent indemnification and reimbursement obligations) or (ii) reduce in part the portion of the Financing Commitments that exceeds the sum of the outstanding Advances. In addition, the Financing Commitments shall be automatically and irrevocably reduced by the amount of any prepayment of Advances pursuant to Section 4.03(c)(i)(C) during the Reinvestment Period that exceeds the Excess Funded Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Financing Commitments shall be automatically and irrevocably reduced on the date of any prepayment made in accordance with the definition of "Market Value Cure" in an amount equal to the amount of such prepayment.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Financing Commitments shall be automatically and irrevocably reduced by all amounts that are used to prepay or repay Advances following the occurrence of a Market Value Event or during the continuation of an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)All unused Financing Commitments as of the last day of the Reinvestment Period shall automatically be terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Financing Commitments shall be irrevocably reduced by the amount of any repayment or prepayment of Advances following the last day of the Reinvestment Period.

ARTICLE V<br>THE PORTFOLIO MANAGER

SECTION 5.01.<u>Appointment and Duties of the Portfolio Manager</u>

. The Company has appointed the Portfolio Manager as its portfolio manager under this Agreement and the Portfolio Management Agreement pursuant to the terms of the Portfolio Management Agreement and the Portfolio Manager has accepted such appointment. The Portfolio Manager shall perform the investment management functions of the Company set forth herein and therein.

SECTION 5.02.<u>Portfolio Manager Representations as to Eligibility Criteria; Etc</u>

. The Portfolio Manager agrees to direct the Company to comply with all covenants and restrictions imposed on the Company hereunder and not to act in contravention of this Agreement. The Portfolio Manager represents to the other parties hereto that (a) as of the Trade Date for each Portfolio Investment purchased, such Portfolio Investment meets all of the applicable Eligibility Criteria (unless otherwise consented to by the Administrative Agent) and, except as otherwise permitted hereunder, and (b) all of the information contained in the related Notice of Acquisition is true, correct and complete in all material respects; *provided* that, to the extent any such information was furnished to the Company by any third party, such information is as of its delivery date true, complete and correct in all material respects to the knowledge of the Portfolio Manager.

SECTION 5.03.<u>Indemnification</u>

. The Portfolio Manager and the Parent shall indemnify and hold harmless the Company, the Agents, the Collateral Administrator, the Securities Intermediary and the Lenders and their respective affiliates, directors, officers, stockholders, partners, agents, employees and controlling persons (each, an "<u>Indemnified Person</u>") from and against any and all losses, claims, demands, damages or liabilities of any kind, including reasonable and documented legal fees and disbursements of one firm of outside counsel to each group of affiliated Indemnified Persons, and one additional firm of outside counsel for any Indemnified Persons subject to an actual or perceived conflict of interest and such other local counsel as shall be required (collectively, "<u>Liabilities</u>"), and shall reimburse each such Indemnified Person on a current basis for all reasonable and documented expenses (including fees and disbursements of counsel, subject to the limitations above), incurred by such Indemnified Person in connection with investigating, preparing, responding to or defending any investigative, administrative, judicial or regulatory action, suit, claim or proceeding, relating to or arising out of (a) any breach by the Portfolio Manager of any of its obligations hereunder or under the Portfolio Management Agreement and (b) the failure of any of the representations or warranties of the Portfolio Manager set forth herein or in the Portfolio Management Agreement to be true when made or when deemed made or repeated, except to the extent that such Liabilities or expenses are found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of any Indemnified Person or its Related Parties or the material noncompliance by the Agents or Lenders of their respective obligations under this

67958248. v2

------

Agreement. This Section 5.03 shall not apply with respect to Taxes other than any Taxes that represent losses, claims, demands, damages or liabilities arising from any non-Tax claim, and, so long as such losses are not caused by a breach by the Portfolio Manager of the terms of this Agreement, shall not apply to any losses in the Market Value of any Collateral.

The parties hereto agree that this Section 5.03 shall not be interpreted to provide recourse to or against the Portfolio Manager or the Parent against loss by reason of the bankruptcy, insolvency or lack of creditworthiness of an obligor with respect to any Portfolio Investment. The Portfolio Manager and the Parent shall have no liability for making indemnification under this Agreement to the extent any such indemnification constitutes recourse for uncollectible or uncollected Portfolio Investments.

This Section 5.03 shall survive the termination of this Agreement and the repayment of all amounts owing to the Secured Parties hereunder.

ARTICLE VI<br>REPRESENTATIONS, WARRANTIES AND COVENANTS

SECTION 6.01.<u>Representations and Warranties</u>

. The Company (and, with respect to clauses (a) through (e), (l), (n) and (t) through (v), the Portfolio Manager) represents to the other parties hereto solely with respect to itself that as of the date hereof and each Trade Date (or as of such other date as may be expressly set forth below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)it is duly organized or incorporated, as the case may be, and validly existing under the laws of the jurisdiction of its organization or incorporation and has all requisite power and authority to execute, deliver and perform this Agreement and each other Loan Document to which it is a party and to consummate the transactions herein and therein contemplated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the execution, delivery and performance of this Agreement and each such other Loan Document, and the consummation of the transactions contemplated herein and therein have been duly authorized by it and this Agreement and each other Loan Document to which it is a party constitutes its legal, valid and binding obligation enforceable against it in accordance with its terms (subject to (A) bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors' rights generally and (B) equitable limitations, regardless of whether such enforceability is considered in a proceeding in equity or at law);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the execution, delivery and performance of this Agreement and each other Loan Document to which it is a party and the consummation of the transactions contemplated herein and therein do not conflict with the provisions of its governing instruments and will not violate in any material way any provisions of Applicable Law or regulation or any applicable order of any court or regulatory body and will not result in the material breach of, or constitute a default, or require any consent, under any material agreement, instrument or document to which it is a party or by which it or any of its property may be bound or affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)it is not subject to any Adverse Proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)it has obtained all consents and authorizations (including all required consents and authorizations of any Governmental Authority) that are necessary or advisable to be obtained by it in connection with the execution, delivery and performance of this Agreement and each other Loan Document to which it is a party and each such consent and authorization is in full force and effect except where the failure to do so would not reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)it is not required to register as an "investment company" as defined in the Investment Company Act of 1940, as amended;

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)it has not issued any securities that are or are required to be registered under the Securities Act of 1933, as amended, and it is not a reporting company under the Securities Exchange Act of 1934, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)it has no Indebtedness other than (i) Indebtedness incurred under the terms of the Loan Documents, (ii) Indebtedness incurred pursuant to certain ordinary business expenses arising pursuant to the transactions contemplated by this Agreement and the other Loan Documents and (iii) to the extent constituting Indebtedness, if applicable, the obligation to make future payments under any Delayed Funding Term Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)(x) it does not have underlying assets which constitute "plan assets" within the meaning of the Plan Asset Rules; and (y) neither it nor any ERISA Affiliate has within the last six years sponsored, maintained, contributed to, or been required to contribute to and does not have any liability with respect to any Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)as of the date of this Agreement it is, and after giving effect to any Advance it will be, Solvent and it is not entering into this Agreement or any other Loan Document or consummating any transaction contemplated hereby or thereby with any intent to hinder, delay or defraud any of its creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)it is not in default under any other contract to which it is a party except where such default would not reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)it is in compliance in all material respects with all Applicable Laws, judgments, agreements with governmental authorities, decrees and orders with respect to its business and properties and the Portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)it does not have any Subsidiaries or own any Investments in any Person other than (1) the Portfolio Investments or (2) Investments (i) constituting Eligible Investments (as measured at their time of acquisition), (ii) acquired by the Company with the approval of the Administrative Agent, or (iii) those the Company shall have acquired or received as a distribution in connection with a workout, bankruptcy, foreclosure, restructuring or similar process or proceeding involving a Portfolio Investment or any issuer thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)(x) it has disclosed to the Administrative Agent all agreements, instruments and corporate or other restrictions to which it is subject, and all other matters actually known to it that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and (y) no information (other than projections, forward-looking information, general economic data or industry information) heretofore furnished by or on behalf of the Company in writing to the Administrative Agent or any Lender in connection with this Agreement or any transaction contemplated hereby (after taking into account all updates, modifications and supplements to such information) contains (or, to the extent any such information was furnished by a third party, to the Company's knowledge contains), when taken as a whole, as of its delivery date, any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)all of the conditions to the acquisition of the Portfolio Investments to be acquired on such Trade Date specified in Section 1.03 have been satisfied or waived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)the Company has timely filed all Tax returns required by Applicable Law to have been filed by it; all such Tax returns are true and correct in all material respects; the Company has paid or withheld (as applicable) all Taxes owing or required to be withheld by it (if any) shown on such Tax returns, except (a) any such Taxes which are being contested in good faith by appropriate proceedings and for which adequate reserves shall have been set aside in accordance with GAAP on its books and records or (b) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect; and there are no final judgments for Taxes against the Company which have not been satisfied in full;

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)the Company is treated as a disregarded entity for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)the Company is wholly owned by the Parent, which is a U.S. Person or a disregarded entity owned by a U.S. Person for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)prior to the date hereof, the Company has not engaged in any business operations or activities other than as an ownership entity for Portfolio Investments and similar Loan or debt obligations and activities incidental thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)neither it nor any of its Affiliates is (i) the subject or target of Sanctions; (ii) a Person that resides or has a place of business in a Sanctioned Country or a country or territory which is designated as a "Non-Cooperative Jurisdiction" by the Financial Action Task Force on Money Laundering, or whose subscription funds are transferred from or through such a jurisdiction; (iii) a "Foreign Shell Bank" within the meaning of the PATRIOT Act (i.e., a foreign bank that does not have a physical presence in any country and that is not affiliated with a bank that has a physical presence and an acceptable level of regulation and supervision); or (iv) a person or entity that resides in or is organized under the laws of a jurisdiction designated by the United States Secretary of the Treasury under Sections 311 or 312 of the PATRIOT Act as warranting special measures due to money laundering concerns. It is in compliance in all material respects with all applicable Sanctions and also in compliance in all material respects with all applicable provisions of the PATRIOT Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)the Company has implemented and maintains in effect policies and procedures designed to ensure compliance by the Company, its agents and their respective directors, managers, officers and employees (as applicable) with Anti-Corruption Laws and applicable Sanctions, and the Company and its officers and directors and, to its knowledge, its employees, members and agents are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected to result in the Company being designated as a Sanctioned Person. None of (i) the Company or its directors, officers, managers or employees or (ii) to the knowledge of the Company, any director, manager or agent of the Company that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)the Loan Documents represent all of the material agreements between the Portfolio Manager, the Parent, the MPA Seller and the Seller, on the one hand, and the Company, on the other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)the Company is not relying on any advice (whether written or oral) of any Lender, Agent or any of their respective Affiliates in connection with the consummation of the transaction contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)the Company has good and marketable title to all Portfolio Investments and other Collateral free of any Liens (other than Permitted Liens) and no effective financing statement (other than with respect to Permitted Liens) or other instrument similar in effect naming the Company or any of its Affiliates as debtor and covering all or any part of the Collateral is on file in any recording office, except such as may have been filed in favor of the Collateral Agent as "Secured Party" pursuant hereto, as necessary or advisable in connection with the Participation Agreement and the Sale Agreement or which has been terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)as of the Effective Date, to the best knowledge of the Company, the information included in the Beneficial Ownership Certification (if any) provided on or prior to the Effective Date to any Lender in connection with this Agreement is true and correct in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)upon the making of each Advance, the Collateral Agent, for the benefit of the Secured Parties, will have acquired a perfected, first priority and valid security interest (except, as to priority, for any Permitted Liens) in the Collateral acquired with the proceeds of such Advance, free and clear of any Lien (other than Permitted Liens) or restrictions on transferability with respect to such security interest;

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)no ERISA Event has occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ab)no part of the proceeds of any Advance will be used by the Company to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying Margin Stock. Neither the making of any Advance nor the use of the proceeds thereof will violate or be inconsistent with the provisions of Regulation T, U or X of the Board of Governors of the Federal Reserve Board. No Advance is secured, directly or indirectly, by Margin Stock, and the Collateral does not include Margin Stock.

SECTION 6.02.<u>Covenants of the Company and the Portfolio Manager</u>

. The Company (and, with respect to clauses (e), (k), (r), (gg), (hh) and (ii), the Portfolio Manager):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)shall at all times: (i) maintain at least one independent manager or director (who is in the business of serving as an independent manager or director); (ii) maintain its own separate books and records and bank accounts; (iii) hold itself out to the public and all other Persons as a legal entity separate from any other Person; (iv) have a board of managers separate from that of any other Person; (v) file its own Tax returns, except to the extent that the Company is treated as a "disregarded entity" for Tax purposes and is not required to file any Tax returns under Applicable Law; (vi) not commingle its assets with assets of any other Person; (vii) conduct its business in its own name and comply with all organizational formalities to maintain its separate existence; (viii) pay its own liabilities only out of its own funds; (ix) maintain an arm's length relationship with the Parent and each of its other Affiliates; (x) not hold out its credit or assets as being available to satisfy the obligations of others; (xi) allocate fairly and reasonably any overhead expenses that are shared with an Affiliate, including for shared office space; (xii) use separate stationery, invoices and checks; (xiii) correct any known misunderstanding regarding its separate identity; (xiv) maintain adequate capital in light of its contemplated business purpose, transactions and liabilities and pay its operating expenses and liabilities from its own assets; (xv) not acquire the obligations or any securities of its Affiliates; (xvi) cause the managers, officers, agents and other representatives of the Company to act at all times with respect to the Company consistently and in furtherance of the foregoing and in the best interests of the Company; and (xvii) maintain at least one special member, who, upon the dissolution of the sole member of the Company, shall immediately become the member of the Company in accordance with its organizational documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)shall not (i) engage, directly or indirectly, in any business, other than the actions required or permitted to be performed under the preceding clause (a), including, other than with respect to any warrants received in connection with a Portfolio Investment, controlling the decisions or actions respecting the daily business or affairs of any other Person except as otherwise permitted hereunder (which, for the avoidance of doubt, shall not prohibit the Company from taking, or refraining to take, any action under or with respect to a Portfolio Investment); (ii) fail to be Solvent; (iii) release, sell, transfer, convey or assign any Portfolio Investment unless in accordance with the Loan Documents; (iv) except for capital contributions or capital distributions permitted under the terms and conditions of this Agreement and properly reflected on the books and records of the Company, enter into any transaction with an Affiliate of the Company except on commercially reasonable terms similar to those available to unaffiliated parties in an arm's-length transaction; (v) identify itself as a department or division of any other Person; or (vi) own any asset or property other than the Collateral and the related assets and incidental personal property necessary for the ownership or operation of these assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)shall not take any action contrary to (i) the "Facts and Assumptions" sections in the opinions of Ropes & Gray LLP, dated the Effective Date, relating to certain true sale and non-consolidation matters (or any subsequent opinion of nationally recognized counsel relating to certain true sale matters provided in accordance with Section 1.03) and (ii) the "Facts and Assumptions" section in the opinion of Dechert LLP, dated as of the First Amendment Date, relating to certain non-consolidation matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)shall not create, incur, assume or suffer to exist any Indebtedness other than (i) Indebtedness incurred under the terms of the Loan Documents, (ii) Indebtedness incurred pursuant to certain ordinary business expenses arising pursuant to the transactions contemplated by this Agreement

67958248. v2

------

and the other Loan Documents and (iii) to the extent constituting Indebtedness, if applicable, the obligation to make future payments under any Delayed Funding Term Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)shall comply in all material respects with all Anti-Corruption Laws and applicable Sanctions and shall maintain in effect and enforce policies and procedures designed to ensure compliance by the Company and its directors, managers, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)shall not (i) amend (A) any of its constituent documents or (B) any Loan Document to which it is a party in any manner that would reasonably be expected to adversely affect the Lenders in any material respect or (ii) cease to be wholly owned by the Parent, without, in each case, the prior written consent of the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)shall not (A) permit the validity or effectiveness of this Agreement or any grant hereunder to be impaired, or permit the Lien of this Agreement to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to this Agreement, any other Loan Document or the Advances, except as may be expressly permitted hereby, (B) permit any Lien to be created on or extend to or otherwise arise upon or burden the Collateral or any part thereof, any interest therein or the proceeds thereof, in each case, other than Permitted Liens or (C) take any action that would cause the Lien of this Agreement not to constitute a valid perfected security interest in the Collateral that is of first priority, free of any Lien, as applicable, except for Permitted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)shall not, without the prior consent of the Administrative Agent (acting at the direction of the Required Lenders), which consent may be withheld in the sole and absolute discretion of the Required Lenders, enter into any hedge agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)shall not change its name, identity or corporate structure in any manner that would make any financing statement or continuation statement filed by the Company (or by the Collateral Agent on behalf of the Company) in accordance with subsection (a) above materially misleading or change its jurisdiction of organization, unless the Company shall have given the Administrative Agent and the Collateral Agent at least 30 days' (or such shorter period as the Administrative Agent may agree in its sole discretion) prior written notice thereof, and shall promptly file, or authorize the filing of, appropriate amendments to all previously filed financing statements and continuation statements (and, if filed by the Company, shall provide a copy of such amendments to the Collateral Agent and Administrative Agent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)shall do or cause to be done all things reasonably necessary to (i) preserve and keep in full force and effect its existence as a limited liability company and take all reasonable action to maintain its rights, franchises, licenses and permits material to its business in the jurisdiction of its formation and (ii) qualify and remain qualified as a limited liability company in good standing in each jurisdiction in which such qualification is necessary to protect the validity and enforceability of the Loan Documents or any of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)shall comply with all Applicable Law (whether statutory, regulatory or otherwise), except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)shall not merge into or consolidate with any Person or dissolve, terminate or liquidate in whole or in part, in each case, without the prior written consent of the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)except for Investments permitted by Section 6.02(u)(C) and without the prior written consent of the Administrative Agent, shall not form, or cause to be formed, any Subsidiaries; or make or suffer to exist any Loans or advances to, or extend any credit to, or make any investments (by way of transfer of property, contributions to capital, purchase of stock or securities or evidences of indebtedness, acquisition of the business or assets, or otherwise) in, any Affiliate or any other Person except investments as otherwise permitted herein and pursuant to the other Loan Documents;

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)shall ensure that (i) its affairs are conducted so that its underlying assets do not constitute "plan assets" within the meaning of the Plan Asset Rules, and (ii) neither it nor any ERISA Affiliate sponsors, maintains, contributes to or is required to contribute to or has any liability with respect to any Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)except as otherwise permitted hereunder, shall not sell or transfer any Collateral or any interest therein to any other Person and the Company shall defend the right, title, and interest of the Collateral Agent (for the benefit of the Secured Parties) and the Lenders in and to the Collateral against all claims of third parties claiming to be purchasers of Collateral not sold or transferred in accordance with this Agreement (other than Permitted Liens);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)shall promptly furnish to the Administrative Agent, and the Administrative Agent shall furnish to the Lenders, copies of the following financial statements, reports and information: (i) within 120 days after the end of each fiscal year of the Parent, a copy of the audited consolidated balance sheet of the Parent and its consolidated Subsidiaries as at the end of such year, the related consolidated statements of income for such year and the related consolidated statements of changes in net assets and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year; (ii) within 45 days after the end of each fiscal quarter of each fiscal year (other than the last fiscal quarter of each fiscal year), an unaudited consolidated balance sheet of the Parent and its consolidated Subsidiaries as of the end of such fiscal quarter and including the prior comparable period (if any), and the unaudited consolidated statements of income of the Parent and its consolidated Subsidiaries for such fiscal quarter and for the period commencing at the end of the previous fiscal year and ending with the end of such fiscal quarter, and the unaudited consolidated statements of cash flows of the Parent and its consolidated Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such fiscal quarter; (iii) from time to time, such other information or documents (financial or otherwise) as the Administrative Agent or the Required Lenders may reasonably request; and (iv) as soon as available and in any event within ten (10) Business Days after the end of each calendar quarter, details of each Portfolio Investment that is a Partial PIK Portfolio Investment and the quantum of interest payable under such Partial PIK Portfolio Investments that is actually being paid in kind rather than in cash (with such update to be substantially in the form of Schedule 8 and which may be delivered via email);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)shall furnish to the Administrative Agent together with any financial statements delivered pursuant to Section 6.02(p)(i) or (ii), a compliance certificate, certified by an authorized signatory of the Company to be true and correct, (i) stating whether any Default or Event of Default exists and (ii) stating that Company is in compliance with the covenants set forth in this Agreement, including a certification that the Collateral has been Delivered to the Collateral Agent, or specifying any non-compliance with the covenants contained herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)shall pay or discharge or cause to be paid or discharged, before the same shall become delinquent, all Taxes levied or imposed upon the Company or upon the income, profits or property of the Company; *provided* that the Company shall not be required to pay or discharge or cause to be paid or discharged any such Tax (i) the amount, applicability or validity of which is being contested in good faith by appropriate proceedings and for which disputed amounts adequate reserves in accordance with GAAP have been made or (ii) the failure of which to pay or discharge could not reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)shall permit representatives of the Administrative Agent at any time and from time to time as the Administrative Agent shall reasonably request, and at the Company's expense, (A) to inspect and make copies of and abstracts from its records relating to the Portfolio Investments and (B) to visit its properties in connection with the collection, processing or managing of the Portfolio Investments for the purpose of examining such records, and to discuss matters relating to the Portfolio Investments or such Person's performance under this Agreement and the other Loan Documents with any officer or employee or auditor (if any) of such Person having knowledge of such matters (including, if requested by the Administrative Agent, quarterly telephone conferences with representatives of the Company with

67958248. v2

------

respect to review of the Portfolio Investments). The Company agrees to render to the Administrative Agent such clerical and other assistance as may be reasonably requested with regard to the foregoing; *provided* that such assistance shall not interfere in any material respect with the Company's or the Portfolio Manager's business and operations. So long as no Event of Default has occurred and is continuing and no Market Value Event has occurred, such visits and inspections shall occur only (i) upon five (5) Business Days' prior written notice, (ii) during normal business hours and (iii) no more than once in any calendar year. Following the occurrence of a Market Value Event or following the occurrence and during the continuance of an Event of Default, there shall be no limit on the timing or number of such inspections and only three (3) Business Days' prior notice will be required before any inspection. Notwithstanding anything to the contrary in this clause (r), neither the Company nor any Affiliate thereof will be required to disclose, permit the inspection, examination or making copies or abstracts of, or discussion of, any document, information or other matter that (x) constitutes non-financial trade secrets or non-financial proprietary information, (y) in respect of which access or inspection by, or disclosure to, the Administrative Agent or any Lender (or their respective representatives or contractors) is prohibited by Applicable Law or (z) is subject to attorney-client or similar privilege or constitutes attorney work product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)shall not use any part of the proceeds of any Advance, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of the Board of Governors of the Federal Reserve System of the United States of America, including Regulations T, U and X;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)shall not make any Restricted Payments without the prior written consent of the Administrative Agent; *provided* that the Company may make Permitted Distributions or Permitted RIC Distributions subject to the other requirements of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)shall not make or hold any Investments, except (A) the Portfolio Investments or (B) Investments constituting (x) Eligible Investments (measured at the time of acquisition), (y) those that have been consented to by the Administrative Agent or (z) those the Company shall have acquired or received as a distribution in connection with a workout, bankruptcy, foreclosure, restructuring or similar process or proceeding involving a Portfolio Investment or any issuer thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)shall not request any Advance, and the Company shall not directly or, to the knowledge of the Company, indirectly, use, and shall procure that its directors, officers, employees and agents shall not directly or, to the knowledge of the Company, indirectly use, the proceeds of any Advance (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, except to the extent permitted for a Person required to comply with Sanctions, or (C) in any manner that would result in the violation of any Sanctions applicable to any party hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)other than pursuant to the Participation Agreement and the Sale Agreement or as otherwise contemplated hereunder, shall not transfer to any of its Affiliates any Portfolio Investment purchased from any of its Affiliates (other than sales to Affiliates conducted on terms and conditions consistent with those of an arm's length transaction and at fair market value);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)shall post on a password protected website maintained by the Administrative Agent to which the Portfolio Manager will have access or deliver via email to the Administrative Agent, with respect to each Portfolio Investment, without duplication of any other reporting requirements set forth in this Agreement or any other Loan Document, (A) any management discussion and analysis provided by the related obligor, (B) any financial reporting packages provided by the related obligor and (C) any written notifications of credit events with respect to such obligor and with respect to each Portfolio Investment for such obligor (including, in each case, any attached or included information, statements and calculations). The Company (or the Portfolio Manager on its behalf) shall post or deliver via email all information and notices set forth in the immediately preceding sentence (1) in the case of notifications of credit events within one (1) Business Day of the date of receipt thereof by the Company or the Portfolio Manager and (2) in all other cases, within five (5) Business Days of the receipt thereof by the Company or the Portfolio Manager. The Company shall cause the Portfolio Manager to provide such

67958248. v2

------

other information as the Administrative Agent may reasonably request with respect to any Portfolio Investment or obligor (to the extent reasonably available to the Portfolio Manager and subject to applicable obligations of confidentiality);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)shall not elect to be classified as other than a disregarded entity or partnership for U.S. federal income tax purposes, nor shall the Company take any other action or actions that would cause it to be classified, taxed or treated as a corporation or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes (including transferring interests in the Company on or through an established securities market or secondary market (or the substantial equivalent thereof), within the meaning of Section 7704(b) of the Code (and Treasury regulations thereunder));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)shall only have partners or owners that are treated as U.S. Persons or that are disregarded entities owned by a U.S. Person and shall not recognize the transfer of any interest in the Company that constitutes equity for U.S. federal income tax purposes to a Person that is not a U.S. Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)shall from time to time execute and deliver all such supplements and amendments hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments, and shall take such other action as may be reasonably necessary to secure the rights and remedies of the Secured Parties hereunder and to grant more effectively all or any portion of the Collateral, maintain or preserve the security interest (and the priority thereof, subject to Permitted Liens) of this Agreement or to carry out more effectively the purposes hereof, perfect, publish notice of or protect the validity of any grant made or to be made by this Agreement, preserve and defend title to the Collateral and the rights therein of the Collateral Agent and the Secured Parties in the Collateral and the Collateral Agent against the claims of all Persons and parties (other than holders of Permitted Liens), or give, execute, deliver, file and/or record any financing statement, notice, instrument, document, agreement or other papers that may be necessary or desirable to create, preserve, perfect or validate the security interest granted pursuant to this Agreement or to enable the Collateral Agent to exercise and enforce its rights hereunder with respect to such pledge and security interest, and hereby authorizes the Collateral Agent to file a UCC financing statement listing 'all assets of the debtor' (or substantially similar language) in the collateral description of such financing statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ab)shall use all commercially reasonable efforts to elevate all Participation Interests to absolute assignments within the applicable then-current standard settlement timeframes set forth in LSTA guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ac)shall not hire any employees (other than any officers appointed pursuant to its limited liability company agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ad)shall not maintain any bank accounts or securities accounts other than the Collateral Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ae)except as otherwise expressly permitted herein (including pursuant to Section 6.03), shall not cancel or terminate any of the underlying instruments in respect of a Portfolio Investment to which it is party or beneficiary (in any capacity), or consent to or accept any cancellation or termination of any of such agreements unless (in each case) the Administrative Agent shall have consented thereto in writing in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(af)shall not make or incur any capital expenditures except as reasonably required to perform its functions in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ag)shall not cancel, terminate or consent to or accept any cancellation or termination of, amend, modify or change in any manner any term or condition of the Portfolio Management Agreement in any manner that adversely affects the Lenders in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ah)shall not act on behalf of, a country, territory, entity or individual that, at the time of such act, is the subject or target of Sanctions, and none of the Company, the Portfolio Manager or any of their respective Affiliates, owners, directors or officers is a natural person or entity with whom dealings

67958248. v2

------

are prohibited under Sanctions for a natural person or entity required to comply with such Sanctions. The Company does not own and will not acquire, and the Portfolio Manager will not cause the Company to own or acquire, any security issued by, or interest in, any country, territory, or entity whose direct ownership would be or is prohibited under Sanctions for a natural person or entity required to comply with Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ai)shall give notice to the Administrative Agent (with a copy to the Collateral Agent) promptly in writing upon (and in no event later than one (1) Business Day after) obtaining actual knowledge, or upon due inquiry would have obtained actual knowledge, of the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)any Adverse Proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)any adverse claim asserted against any of the Portfolio Investments, the Collateral Accounts or any other Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)any change in the information provided in the Beneficial Ownership Certification delivered to any Lender that would result in a change to the list of beneficial owners identified in such certification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aj)shall not acquire any Delayed Funding Term Loan if such acquisition would cause the Unfunded Exposure Amount, collateralized or uncollateralized, to exceed 5% of the Collateral Principal Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ak)[reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(al)shall (x) in connection with the Purchase of a Portfolio Investment, cause the Portfolio Manager to provide to the Administrative Agent (with a copy to the Collateral Administrator) (I) on the Trade Date, copies of any trade ticket for purchase and (II) promptly following the Trade Date, copies of (i) any assignment agreement or other instrument of transfer for purchase, (ii) any loan agreement or other primary underlying instruments, (iii) if such Portfolio Investment is evidenced by a note or other instrument, such note or other instrument and (iv) such other documents received by the Company in connection with the purchase of the Portfolio Investment as the Administrative Agent shall reasonably request and (y) in connection with the sale of a Portfolio Investment, within five (5) Business Days of the settlement date for the sale of such Portfolio Investment, cause the Portfolio Manager to provide to the Administrative Agent copies of (i) any trade ticket for sale, (ii) any assignment agreement or other instrument of transfer for sale and (iii) such other documents received by the Company in connection with the sale of the Portfolio Investment as the Administrative Agent shall reasonably request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(am)shall ensure that all Portfolio Investments denominated in a Permitted Non-USD Currency and all proceeds thereof are at all times deposited in or credited to a Permitted Non-USD Currency Account except to the extent that any such proceeds are transferred to another Collateral Account in accordance with this Agreement or any such Portfolio Investment is sold in accordance with this Agreement.

SECTION 6.03.<u>Amendments of Portfolio Investments, Etc</u>

. If the Company or the Portfolio Manager receives any executed amendment, supplement, consent, waiver or other modification of any Portfolio Investment or any related underlying instrument or rights thereunder (each, an "<u>Amendment</u>") with respect to any Portfolio Investment or any related underlying instrument, or makes any affirmative determination to exercise or refrain from exercising any rights or remedies thereunder, it will give prompt (and in any event, not later than three (3) Business Days') notice thereof to the Administrative Agent. In any such event, the Company shall

67958248. v2

------

exercise all voting and other powers of ownership relating to such Amendment or the exercise of such rights or remedies as the Portfolio Manager shall deem appropriate under the circumstances; *provided* that if an Event of Default has occurred and is continuing or a Market Value Event has occurred, the Company will exercise all voting and other powers of ownership as the Administrative Agent (acting at the direction of the Required Lenders) shall instruct (it being understood that if the terms of the related underlying instrument expressly prohibit or restrict any such rights given to the Administrative Agent, then such right shall be limited to the extent necessary so that such prohibition or restriction is not violated). In any such case, following the Company's receipt thereof, the Company shall promptly provide to the Administrative Agent copies of all executed amendments to underlying instruments, executed waiver or consent forms or other documents executed or delivered in connection with any Amendment.

ARTICLE VII<br>EVENTS OF DEFAULT

SECTION 7.01.<u>Events of Default.</u> If any of the following events ("Events of Default") shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Company shall fail to pay (i) any principal amount owing by it in respect of the Secured Obligations when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise or (ii) any other amount in respect of the Secured Obligations (whether for interest, fees or other amounts owing by it) within one (1) Business Day of when such amount becomes due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)any representation or warranty made or deemed made by or on behalf of the Company or the Portfolio Manager (collectively, the "<u>Agreement Parties</u>") herein or in any Loan Document (other than projections, forward-looking information, general economic data or industry information), shall prove to have been incorrect in any material respect when made or deemed made (it being understood that the failure of a Portfolio Investment to satisfy the Eligibility Criteria after the date of its purchase shall not constitute a failure);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)(A) the Company shall fail to observe or perform any covenant, condition or agreement contained in Section 6.02(a)(i) through (vii), (x) or (xvii), (b)(i) through (iv), (d), (f), (h), (i), (l), (m), (o), (t), (v), (w), (cc), (hh), (ii) or (ll)(y), Section 8.02(b) or the last sentence of the first paragraph of Section 1.04 or (B) any Agreement Party shall fail to observe or perform any other covenant, condition or agreement contained herein (it being understood that the failure of a Portfolio Investment to satisfy the Eligibility Criteria after the date of its purchase shall not constitute such a failure) or in any other Loan Document and, in the case of this clause (B), if such failure is capable of being remedied, such failure shall continue for a period of 30 days following the earlier of (i) receipt by such Agreement Party of written notice of such failure from the Administrative Agent and (ii) an officer of such Agreement Party becoming aware of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of any Agreement Party or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Agreement Party or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)any Agreement Party shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (d) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for such Agreement Party or for a

67958248. v2

------

substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)any Agreement Party shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)the passing of a resolution by the equity holders of the Company in respect of the winding up on a voluntary basis of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)any final judgments or orders (not subject to appeal or otherwise non-appealable) by one or more courts of competent jurisdiction for the payment of money in an aggregate amount in excess of U.S.$2,500,000 (after giving effect to insurance, if any, available with respect thereto) shall be rendered against the Company, and the same shall remain unsatisfied, unvacated, unbonded or unstayed for a period of thirty (30) days after the date on which the right to appeal has expired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)an ERISA Event occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)a Change of Control occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)the Company or the pool of Collateral shall become required to register as an "investment company" within the meaning of the Investment Company Act of 1940, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)the Portfolio Manager (i) resigns as Portfolio Manager under this Agreement and/or the Portfolio Management Agreement, (ii) assigns any of its obligations or duties as Portfolio Manager in contravention of the terms of this Agreement or (iii) otherwise ceases to act as Portfolio Manager in accordance with the terms of this Agreement and the Portfolio Management Agreement and, in each case, an Affiliate of the Portfolio Manager consented to by the Administrative Agent is not appointed (and has accepted such appointment) in accordance with the Portfolio Management Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)the Net Advances are greater than the product of (1) the Net Asset Value multiplied by (2) 75%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)(i) failure of the Company to fund the Unfunded Exposure Account when required in accordance with <u>Section 2.03(f)</u> other than in the case that any Lender fails to make the Advance required in accordance with <u>Section 2.03(f)</u> or (ii) failure of the Company to satisfy its obligations in respect of unfunded obligations with respect to any Delayed Funding Term Loan (including the payment of any amount in connection with the sale thereof to the extent required under this Agreement); *provided* that the failure of the Company to undertake any action set forth in this clause (n) is not remedied within two (2) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)any representation or warranty made or deemed made by the Seller or the MPA Seller in connection with the Sale Agreement or the Participation Agreement, as applicable, or any other Loan Document (other than projections, forward-looking information, general economic data, industry information or information relating to third parties included in any representation or warranty) shall prove to have been incorrect or misleading in any material respect when made or deemed made; *provided* that this clause (o) shall apply with respect to the MPA Seller only until the date on which all of the Participation Interests granted under the Participation Agreement have been elevated to assignments and the MPA Seller has paid all required distributions on the underlying Portfolio Investments to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)the Seller shall fail to observe or perform any covenant, condition or agreement contained in the Sale Agreement and (other than with respect to any covenant, condition or agreement of the Seller set forth in Sections 2.5, 5.1(d), 5.1(e), 5.2(a), 5.2(b), 5.2(d), 6.1, and 9.1(a) of the Sale Agreement), if such failure is capable of being remedied, such failure shall continue for a period of 30 days following the earlier of (i) receipt by the Company of written

67958248. v2

------

notice of such failure from the Administrative Agent and (ii) an officer of the Company becoming aware of such failure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)the MPA Seller shall fail to observe or perform any covenant, condition or agreement contained in the Participation Agreement and (other than with respect to any covenant, condition or agreement of the MPA Seller relating to the payment of amounts received by it in respect of the Portfolio Investments underlying the Participation Interests to the Company, the exercise of voting rights with respect to such Portfolio Investments and the incurrence of indebtedness or liens by the MPA Seller), if such failure is capable of being remedied, such failure shall continue for a period of 30 days following the earlier of (i) receipt by the Company of written notice of such failure from the Administrative Agent and (ii) an officer of the Company becoming aware of such failure; *provided* that this clause (q) shall apply with respect to the MPA Seller only until the date on which all of the Participation Interests granted under the Participation Agreement have been elevated to assignments and the MPA Seller has paid all required distributions on the underlying Portfolio Investments to the Company;

then, and in every such event (other than an event with respect to the Company described in clause (d) or (e) of this Article), and at any time thereafter in each case during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Company, take either or both of the following actions, at the same or different times: (i) terminate the Financing Commitments, and thereupon the Financing Commitments shall terminate immediately, and (ii) declare all of the Secured Obligations then outstanding to be due and payable in whole (or in part, in which case any Secured Obligations not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the Secured Obligations so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Company accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company; and in case of any event with respect to the Company described in clause (d) or (e) of this Article, the Financing Commitments shall automatically terminate and all Secured Obligations then outstanding, together with accrued interest thereon and all fees and other obligations of the Company accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company.

ARTICLE VIII<br>COLLATERAL ACCOUNTS; COLLATERAL SECURITY

SECTION 8.01.<u>The Collateral Accounts; Agreement as to Control</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Establishment and Maintenance of Collateral Accounts</u>. The Company hereby appoints the Securities Intermediary to establish, and the Securities Intermediary does hereby establish pursuant to the Account Control Agreement, each of the Custodial Account, the Principal Collection Account, the Interest Collection Account, the MV Cure Account and the Unfunded Exposure Account (collectively, the "<u>USD Collateral Accounts</u>" and, together with the Permitted Non-USD Currency Accounts, the "<u>Collateral Accounts</u>"). In addition, the Company hereby appoints the Securities Intermediary to establish on or after the First Amendment Date, and the Securities Intermediary shall establish, on or after the First Amendment Date, pursuant to the Account Control Agreement, each of the Permitted Non-USD Currency Accounts; *provided* that it is understood and agreed that, notwithstanding anything to the contrary set forth herein, the Permitted Non-USD Currency Accounts in respect of any Permitted Non-USD Currency shall not be available for the receipt of cash and Portfolio Investments until such time as (i) the Company establishes such Permitted Non-USD Currency Account, (ii) the Transaction Schedule is updated to add such Permitted Non-USD Currency Account, (iii) the Account Control Agreement is amended to add such Permitted Non-USD Currency Account, (iv) the Administrative Agent has received legal opinions from Dechert LLP or other counsel reasonably acceptable to the Administrative Agent and the Lenders, as to the perfection of the Collateral Agent's

67958248. v2

------

security interest such Permitted Non-USD Currency Account and (v) the Securities Intermediary notifies the Company, the Portfolio Manager, the Administrative Agent and the Collateral Agent in writing (including via email) that such accounts are operational and available to receive such cash and Portfolio Investments (and neither the Securities Intermediary nor the Collateral Agent shall have any liability for any failure or delay in the receipt of such cash or Portfolio Investments) (clauses (i) through (v) collectively with respect to each Permitted Non-USD Currency Account, the "<u>Permitted Non-USD Currency Account Opening Requirement</u>"). . The Securities Intermediary agrees to maintain the Collateral Accounts in accordance with the Account Control Agreement as a "securities intermediary" (within the meaning of Section 8-102(a)(14) of the UCC), in the name of the Company subject to the lien of the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Investment of Funds on Deposit in the Unfunded Exposure Account</u>. All amounts on deposit in the Unfunded Exposure Account shall be invested (and reinvested) in Eligible Investments at the written direction of the Company (or the Portfolio Manager on its behalf) delivered to the Collateral Agent; *provided* that, following the occurrence and during the continuance of an Event of Default or following a Market Value Event, all amounts on deposit in the Unfunded Exposure Account shall be invested, reinvested and otherwise disposed of at the written direction of the Administrative Agent delivered to the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Unfunded Exposure Account.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Amounts may be deposited into the Unfunded Exposure Account from time to time in accordance with <u>Section 4.05</u>. Amounts shall also be deposited into the Unfunded Exposure Account as set forth in <u>Section 2.03(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)While no Event of Default has occurred and is continuing and no Market Value Event has occurred and subject to satisfaction of the Borrowing Base Test (after giving effect to such release), the Portfolio Manager may direct, by means of an instruction in writing to the Securities Intermediary (with a copy to the Collateral Administrator), the release of funds on deposit in the Unfunded Exposure Account (i) for the purpose of funding the Company's unfunded commitments with respect to Delayed Funding Term Loans, for deposit into the Principal Collection Account and (ii) so long as no Unfunded Exposure Shortfall exists or would exist after giving effect to the withdrawal. Following the occurrence and during the continuance of an Event of Default or following the occurrence of a Market Value Event, at the written direction of the Administrative Agent (at the direction of the Required Lenders) (with a copy to the Collateral Administrator), the Securities Intermediary shall transfer all amounts in the Unfunded Exposure Account to the Principal Collection Account to be applied pursuant to <u>Section 4.05</u>. Upon the direction of the Company by means of an instruction in writing to the Securities Intermediary (with a copy to the Collateral Administrator, the Collateral Agent and the Administrative Agent), any amounts on deposit in the Unfunded Exposure Account in excess of outstanding funding obligations of the Company shall be released to the Principal Collection Account and applied pursuant to <u>Section 4.05</u>; *provided* that any such prepayment does not cause the aggregate outstanding principal amount of the Advances to be less than the Minimum Funding Amount.

SECTION 8.02.<u>Collateral Security; Pledge; Delivery</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Grant of Security Interest</u>. As collateral security for the prompt payment in full when due of all the Company's obligations to the Agents, the Lenders, the Collateral Administrator and the Securities Intermediary (collectively, the "<u>Secured Parties</u>") under this Agreement and the other Loan Documents (collectively, the "<u>Secured Obligations</u>"), the Company hereby pledges to the Collateral Agent for the benefit of the Secured Parties and grants a continuing security interest in favor of the Collateral Agent for the benefit of the Secured Parties in all of the Company's right, title and interest in, to and under (in each case, whether now owned or existing, or hereafter acquired or arising) all accounts, payment intangibles, general intangibles, chattel paper, electronic chattel paper, instruments, deposit accounts, letter-of-credit rights, investment property, and any and all other property of any type or nature

67958248. v2

------

owned by it (all of the property described in this clause (a) being collectively referred to herein as "<u>Collateral</u>"), including, without limitation: (1) each Portfolio Investment, (2) all of the Company's interests in the Collateral Accounts (including the Permitted Non-USD Currency Accounts) and all investments, obligations and other property from time to time credited thereto, (3) the Participation Agreement, the Sale Agreement, the Portfolio Management Agreement, any other Loan Document and all rights related to each such agreement (4) all other property of the Company and (5) all proceeds thereof, all accessions to and substitutions and replacements for, any of the foregoing, and all rents, profits and products of any thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding any provision of any Loan Document to the contrary, no interests in or of any Foreign Subsidiary of the Company shall be pledged or similarly hypothecated to guarantee or support any obligations of the Company; *provided* that this exception shall not apply to a pledge of equity interests of any Foreign Subsidiary which is a first tier controlled foreign corporation (as defined in Section 957(a) of the Code) representing sixty-five percent (65%) or less of the voting equity interests and (100% or less of the non-voting equity interests) of such Foreign Subsidiary. The parties agree that any pledge, guaranty or security or similar interest made or granted in contravention of the immediately preceding sentence shall be void ab initio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Delivery and Other Perfection</u>. In furtherance of the collateral arrangements contemplated herein, the Company shall (1) Deliver to the Collateral Agent (or the Securities Intermediary on its behalf) the Collateral hereunder as and when acquired by the Company; (2) if any of the securities, monies or other property pledged by the Company hereunder are received by the Company, forthwith take such action as is necessary to ensure the Collateral Agent's continuing perfected security interest in such Collateral (including Delivering such securities, monies or other property to the Collateral Agent or the Securities Intermediary on its behalf); and (3) on the date of this Agreement, deliver to the Administrative Agent, the Lenders and the Collateral Agent, at the expense of the Company, legal opinions from Ropes & Gray LLP or other counsel reasonably acceptable to the Administrative Agent and the Lenders, as to the perfection of the Collateral Agent's security interest in any of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Remedies, Etc</u>. During the period in which an Event of Default shall have occurred and be continuing, the Collateral Agent shall (but only if and to the extent directed in writing by the Required Lenders) do any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party under the UCC (whether or not the UCC applies to the affected Collateral) and also may, without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent's or its designee's offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent or a designee of the Collateral Agent (acting at the direction of the Required Lenders) may deem commercially reasonable. The Company agrees that, to the extent notice of sale shall be required by law, at least ten (10) calendar days' prior notice to the Company of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of the Collateral regardless of notice of sale having been given. The Collateral Agent or its designee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Transfer all or any part of the Collateral into the name of the Collateral Agent or a nominee thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Enforce collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto;

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Endorse any checks, drafts, or other writings in the Company's name to allow collection of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Take control of any proceeds of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Execute (in the name, place and stead of any of the Company) endorsements, assignments, stock powers and other instruments of conveyance or transfer with respect to all or any of the Collateral; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Perform such other acts as may be reasonably required to do to protect the Collateral Agent's rights and interest hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Compliance with Restrictions</u>. The Company and the Portfolio Manager agree that in any sale of any of the Collateral whenever an Event of Default shall have occurred and be continuing, the Collateral Agent or its designee are hereby authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel in writing is necessary in order to avoid any violation of Applicable Law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and purchasers have certain qualifications, and restrict such prospective bidders and purchasers to Persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of such Collateral), or in order to obtain any required approval of the sale or of the purchaser by any governmental regulatory authority or official, and the Company and the Portfolio Manager further agree that such compliance shall not, in and of itself, result in such sale being considered or deemed not to have been made in a commercially reasonable manner, nor shall the Collateral Agent be liable or accountable to the Company or the Portfolio Manager for any discount allowed by the reason of the fact that such Collateral is sold in good faith compliance with any such limitation or restriction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Private Sale</u>. The Collateral Agent shall incur no liability as a result of a sale of the Collateral, or any part thereof, at any private sale pursuant to clause (c) above conducted in a commercially reasonable manner. The Company and the Portfolio Manager hereby waive any claims against each Agent and Lender arising by reason of the fact that the price at which the Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Collateral Agent Appointed Attorney-in-Fact</u>. The Company hereby appoints the Collateral Agent as the Company's attorney-in-fact (it being understood that the Collateral Agent shall not be deemed to have assumed any of the obligations of the Company by this appointment), with full authority in the place and stead of the Company and in the name of the Company, from time to time in the Collateral Agent's discretion (exercised at the written direction of the Administrative Agent or the Required Lenders, as the case may be), after the occurrence and during the continuation of an Event of Default, to take any action and to execute any instrument which the Administrative Agent or the Required Lenders may deem necessary or advisable to accomplish the purposes of this Agreement. The Company hereby acknowledges, consents and agrees that the power of attorney granted pursuant to this clause is irrevocable during the term of this Agreement and is coupled with an interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Further Assurances</u>. The Company covenants and agrees that, from time to time upon the request of the Collateral Agent (as directed by the Administrative Agent), the Company will execute and deliver such further documents, and do such other acts and things as the Collateral Agent (as directed by the Administrative Agent) may reasonably request in order fully to effect the purposes of this Agreement and to protect and preserve the priority and validity of the security interest granted hereunder or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral; *provided* that no such document may alter the rights and protections afforded to the Company or the Portfolio Manager herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Release of Security Interest upon Disposition of Collateral</u>. Upon any sale, transfer or other disposition of any Collateral (or portion thereof) that is permitted hereunder, the security interest granted hereunder in such Portfolio Investment or other Collateral (or the portion thereof which has been sold or otherwise disposed of) shall, immediately upon the sale or other disposition of such

67958248. v2

------

Portfolio Investment or other Collateral (or such portion) and without any further action on the part of the Collateral Agent or any other Secured Party, be released. Upon any such release, the Collateral Agent will, at the Company's sole expense, deliver to the Company, or cause the Securities Intermediary to deliver, without any representations, warranties or recourse of any kind whatsoever, all certificates and instruments representing or evidencing all of the Collateral held by the Securities Intermediary hereunder, and execute and deliver to the Company or its nominee such documents as the Company shall reasonably request to evidence such release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Termination</u>. Upon the payment in full of all Secured Obligations and termination of the Financing Commitments, the security interest granted herein shall automatically (and without further action by any party) terminate and all rights to the Collateral shall revert to the Company. Upon the sale of any Portfolio Investments in accordance with the terms hereof, the security interest granted herein shall automatically (and without further action by any party) terminate and such Portfolio Investments shall be sold free and clear of the lien of the Collateral Agent; *provided* that the lien of the Collateral Agent shall attach to the proceeds of any such sale. Upon any such termination described in the preceding two sentences, the Collateral Agent will, at the Company's sole expense, deliver to the Company, or cause the Securities Intermediary to deliver, without any representations, warranties or recourse of any kind whatsoever, all certificates and instruments representing or evidencing all of the Collateral held by the Securities Intermediary hereunder, and execute and deliver to the Company or its nominee such documents as the Company shall reasonably request to evidence such termination.

ARTICLE IX<br>THE AGENTS

SECTION 9.01.<u>Appointment of Administrative Agent and Collateral Agent</u>

. Each of the Lenders hereby irrevocably appoints each of the Administrative Agent and the Collateral Agent (each, an "<u>Agent</u>" and collectively, the "<u>Agents</u>") as its agent and authorizes such Agents to take such actions on its behalf and to exercise such powers as are delegated to such Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto. Anything contained herein to the contrary notwithstanding, each Agent and each Lender hereby agree that no Lender shall have any right individually to realize upon any of the Collateral hereunder, it being understood and agreed that all powers, rights and remedies hereunder with respect to the Collateral shall be exercised solely by the Collateral Agent for the benefit of the Secured Parties at the direction of the Administrative Agent or the Required Lenders, as applicable.

Each financial institution serving as an Agent hereunder shall have the same rights and powers in its capacity as a Lender (if applicable) as any other Lender and may exercise the same as though it were not an Agent, and such financial institution and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Company as if it were not an Agent hereunder.

No Agent or the Collateral Administrator shall have any duties or obligations except those expressly set forth herein. Without limiting the generality of the foregoing, (a) no Agent shall be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) no Agent shall have any duty to take any discretionary action or exercise any discretionary powers, except that the foregoing shall not limit any duty expressly set forth in this Agreement to include such rights and powers expressly contemplated hereby or that such Agent is required to exercise as directed in writing by (i) in the case of the Collateral Agent (A) in respect of the exercise of remedies under Section 8.02(c), the Required Lenders, or (B) in all other cases, the Administrative Agent or (ii) in the case of any Agent, the Required Lenders (or such other number or percentage of Lenders as shall be necessary under the circumstances as provided herein), and (c) except as expressly set forth herein, no Agent shall have any duty to disclose, and shall not be liable for the failure to disclose, any information

67958248. v2

------

relating to the Company that is communicated to or obtained by the financial institution serving in the capacity of such Agent (except insofar as provided to it as Agent hereunder) or any of its Affiliates in any capacity. No Agent shall be liable for any action taken or not taken by it in the absence of its own gross negligence or willful misconduct or with the consent or at the request or direction of the Administrative Agent (in the case of the Collateral Administrator and the Collateral Agent only) or the Required Lenders (or such other number or percentage of Lenders that shall be permitted herein to direct such action or forbearance). None of the Collateral Agent, the Collateral Administrator or the Securities Intermediary shall be deemed to have knowledge or notice of any matter, including any Default, Event of Default, Market Value Event, Market Value Trigger Event or failure of the Borrowing Base Test unless and until a Responsible Officer has received written notice thereof from the Company, a Lender or the Administrative Agent. None of the Collateral Agent, the Collateral Administrator, the Securities Intermediary or the Administrative Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement, (ii) the contents of any certificate, report or other document or electronic communication delivered hereunder or in connection herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or any other Loan Document, (iv) the validity, enforceability, effectiveness, genuineness, value or sufficiency of this Agreement, any other agreement, instrument or document or the Collateral, or (v) the satisfaction of any condition set forth herein or any other Loan Document, other than to confirm receipt of items expressly required to be delivered to such Agent, the Collateral Administrator or the Securities Intermediary, as applicable. None of the Collateral Agent, the Collateral Administrator, the Securities Intermediary or the Administrative Agent shall be required to risk or expend its own funds in connection with the performance of its obligations hereunder if it reasonably believes it will not receive reimbursement therefor hereunder.

Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, direction, opinion, document or other writing reasonably believed by it to be genuine and to have been signed or sent by the proper Person. Each Agent also may rely upon any statement made to it orally or by telephone and reasonably believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. Each Agent may consult with legal counsel (who may be counsel for the Company), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

In the event the Collateral Agent or the Collateral Administrator shall receive conflicting instruction from the Administrative Agent and the Required Lenders, the instruction of the Required Lenders shall govern. Neither the Collateral Administrator nor the Collateral Agent shall have any duties or obligations under or in respect of any other agreement (including any agreement that may be referenced herein) to which it is not a party. The grant of any permissive right or power to the Collateral Agent hereunder shall not be construed to impose a duty to act.

It is expressly acknowledged and agreed that neither the Collateral Administrator nor the Collateral Agent shall be responsible for, and shall not be under any duty to monitor or determine, the Market Value of any Portfolio Investment, compliance with the Eligibility Criteria or the Concentration Limitations in any instance, to determine if the conditions of "Deliver" have been satisfied or otherwise to monitor or determine compliance by any other Person with the requirements of this Agreement.

Each of the Collateral Administrator, the Securities Intermediary and each Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by it. None of the Collateral Administrator, the Securities Intermediary or any Agent shall be

67958248. v2

------

responsible for any misconduct or negligence on the part of any sub-agent or attorney appointed by such Person with due care. Each of the Collateral Administrator, the Securities Intermediary and each Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Affiliates and the respective directors, officers, employees, agents and advisors of such Person and its Affiliates (the "<u>Related Parties</u>") for such Agent. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Collateral Administrator, the Securities Intermediary and each Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent or Collateral Agent, as the case may be.

Subject to the appointment and acceptance of a successor as provided in this paragraph, each of the Collateral Administrator, the Collateral Agent, the Securities Intermediary and the Administrative Agent may resign at any time upon 30 days' (or such shorter period as the Company may agree) notice to each other agent, the Lenders, the Portfolio Manager, the Securities Intermediary and the Company. Upon any such resignation, the Required Lenders (with, so long as no Event of Default has occurred and is continuing or no Market Value Event has occurred, the consent of the Company and the Portfolio Manager) shall have the right to appoint a successor; *provided, however*, that any such successor receiving payment from the Company shall be a "U.S. person" and a "financial institution" within the meaning of Treasury Regulations Section 1.1441-1. If no successor shall have been so appointed by the Required Lenders, consented to by the Company and the Portfolio Manager (if applicable) and accepted such appointment within thirty (30) days after the retiring Collateral Administrator, Collateral Agent, Securities Intermediary or Administrative Agent, as applicable, gives notice of its resignation, then the Administrative Agent may, on behalf of the Lenders and without the consent of the Company or the Portfolio Manager, appoint a successor which shall be a financial institution with an office in New York, New York, or an Affiliate of any such financial institution; *provided, however*, that any such successor receiving payment from the Company shall be a "U.S. person" and a "financial institution" within the meaning of Treasury Regulations Section 1.1441-1. If no successor shall have been so appointed by the Administrative Agent and shall have accepted such appointment within sixty (60) days after the retiring Agent, Collateral Administrator or Securities Intermediary gives notice of its resignation, such Agent, Collateral Administrator or Securities Intermediary may petition a court of competent jurisdiction for the appointment of a successor; *provided, however*, that any such successor receiving payment from the Company shall be a "U.S. person" and a "financial institution" within the meaning of Treasury Regulations Section 1.1441-1. Upon the acceptance of its appointment as Collateral Administrator, Securities Intermediary, Administrative Agent or Collateral Agent, as the case may be, hereunder (and, if applicable, under the Account Control Agreement) by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, Collateral Administrator or Securities Intermediary, as applicable, hereunder and under the Account Control Agreement, and the retiring Agent, Collateral Administrator or Securities Intermediary, as applicable, shall be discharged from its duties and obligations hereunder and under the Account Control Agreement. After the retiring Agent's, Collateral Administrator's or Securities Intermediary's, as applicable, resignation hereunder, the provisions of this Article and Sections 5.03 and 10.04 shall continue in effect for the benefit of such retiring Agent, Collateral Administrator or Securities Intermediary, as applicable, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Collateral Administrator, Securities Intermediary, Administrative Agent or Collateral Agent, as the case may be.

Subject to the appointment and acceptance of a successor as provided in this paragraph, each of the Collateral Administrator, the Collateral Agent and the Securities Intermediary may be removed at any time with 30 days' (or such shorter period as the Administrative Agent may agree in its

67958248. v2

------

sole discretion) notice by the Company (with the written consent of the Administrative Agent), with notice to the Collateral Administrator, the Collateral Agent, the Securities Intermediary, the Lenders and the Portfolio Manager (which removal of the Collateral Agent or the Securities Intermediary will also be effective as removal under the Account Control Agreement). Upon any such removal, the Company shall have the right (with the written consent of the Administrative Agent) to appoint a successor to the Collateral Agent, the Collateral Administrator and/or the Securities Intermediary, as applicable. If no successor to any such Person shall have been so appointed by the Company and shall have accepted such appointment within thirty (30) days after such notice of removal, then the Administrative Agent may appoint a successor which shall be a financial institution with an office in New York, New York, or an Affiliate of any such financial institution. If no successor shall have been so appointed and shall have accepted such appointment within sixty (60) days after the retiring Agent, Collateral Administrator or Securities Intermediary gives notice of its resignation, such Agent, Collateral Administrator or Securities Intermediary may petition a court of competent jurisdiction for the appointment of a successor. Upon the acceptance of its appointment as Collateral Administrator, Securities Intermediary or Collateral Agent, as the case may be, hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the removed Collateral Agent, Collateral Administrator and/or Securities Intermediary hereunder and under the Account Control Agreement, and the removed Collateral Agent, Collateral Administrator and/or Securities Intermediary shall be discharged from its duties and obligations hereunder (and, if applicable, under the Account Control Agreement). After the removed Collateral Agent's, Collateral Administrator's and/or Securities Intermediary's removal hereunder, the provisions of this Article and Sections 5.03 and 10.04 shall continue in effect for the benefit of such removed Collateral Agent, Collateral Administrator and/or Securities Intermediary, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Collateral Administrator, Securities Intermediary or Collateral Agent, as the case may be.

Upon the request of the Company or the Administrative Agent or the successor Agent, Collateral Administrator or Securities Intermediary, any such retiring or removed Agent, Collateral Administrator or Securities Intermediary shall, upon payment of its charges then unpaid, execute and deliver an instrument transferring to such successor party all the rights, powers and trusts of the retiring or removed Agent, Collateral Administrator or Securities Intermediary, and shall duly assign, transfer and deliver to such successor agent all property and money held by such retiring or removed Agent, Collateral Administrator or Securities Intermediary hereunder (and under the Account Control Agreement, if applicable). Upon request of any such successor, the Company and the Administrative Agent shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor agent all such rights, powers and trusts.

Notwithstanding anything to the contrary contained herein or in any other Loan Document, any corporation into which the Collateral Agent, the Securities Intermediary or the Collateral Administrator may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Collateral Agent, the Securities Intermediary or the Collateral Administrator shall be a party, or any corporation succeeding to the corporate trust business of the Collateral Agent or the Collateral Administrator, or the securities intermediary business of the Securities Intermediary shall be the successor of the Collateral Agent, the Securities Intermediary or the Collateral Administrator hereunder, as applicable (and, if applicable, under the Account Control Agreement) without the execution or filing of any paper with any Person or any further act on the part of any Person.

67958248. v2

------

Each Lender acknowledges that it has, independently and without reliance upon any Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon any Agent or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any related agreement or any document furnished hereunder or thereunder.

Anything in this Agreement notwithstanding, in no event shall any Agent, the Collateral Administrator or the Securities Intermediary be liable for special, punitive, indirect or consequential loss or damage of any kind whatsoever (including lost profits), even if such Agent, the Collateral Administrator or the Securities Intermediary, as the case may be, has been advised of such loss or damage and regardless of the form of action.

Each Agent and the Collateral Administrator shall not be liable for any error of judgment made in good faith by an officer or officers of such Agent or the Collateral Administrator, unless it shall be conclusively determined by a court of competent jurisdiction that such Agent or the Collateral Administrator was grossly negligent in ascertaining the pertinent facts.

Each Agent and the Collateral Administrator shall not be responsible for the accuracy or content of any certificate, statement, direction or opinion furnished to it in connection with this Agreement.

Each Agent and the Collateral Administrator shall not be bound to make any investigation into the facts stated in any resolution, certificate, statement, instrument, opinion, report, consent, order, approval, bond or other document or electronic communication or have any responsibility for filing or recording any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to it hereunder.

In the absence of gross negligence, willful misconduct or bad faith on the part of the Agents, the Agents may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any request, instruction, certificate, opinion or other document or electronic communication furnished to the Agents, reasonably believed by the Agents to be genuine and to have been signed or presented by the proper party or parties and conforming to the requirements of this Agreement but, in the case of a request, instruction, document or certificate which by any provision hereof is specifically required to be furnished to the Agents, the Agents shall be under a duty to examine the same in accordance with the requirements of this Agreement to determine that it conforms to the form required by such provision.

No Agent shall be responsible for delays or failures in performance resulting from acts beyond its control. Such acts include but are not limited to acts of God, strikes, lockouts, riots and acts of war. In connection with any payment, the Collateral Agent and the Collateral Administrator are entitled to rely conclusively on any instructions provided to them by the Administrative Agent.

The rights, protections and immunities given to the Collateral Agent in this Section 9.01 and 9.02 shall likewise be available and applicable in all respects to the Securities Intermediary and the Collateral Administrator.

SECTION 9.02.<u>Additional Provisions Relating to the Collateral Agent and the Collateral Administrator</u>

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Collateral Agent May Perform</u>. The Collateral Agent shall from time to time take such action (at the written direction of the Administrative Agent or the Required Lenders) for the maintenance, preservation or protection of any of the Collateral or of its security interest therein and the Administrative Agent may direct the Collateral Agent in writing to take any action incidental thereto; *provided* that in each case the Collateral Agent shall have no obligation to take any such action in the absence of such direction and shall have no obligation to comply with any such direction if it reasonably believes that the same (1) is contrary to Applicable Law or (2) is reasonably likely to subject the Collateral Agent to any loss, liability, cost or expense, unless the Administrative Agent or the Required Lenders, as the case may be, issuing such instruction make provision reasonably satisfactory to the Collateral Agent for payment of same (which provision may be payment of such cost or expense by the Company in accordance with the Priority of Payments if such arrangement is reasonably satisfactory to the Collateral Agent). With respect to other actions which are incidental to the actions specifically delegated to the Collateral Agent hereunder, the Collateral Agent shall not be required to take any such incidental action hereunder, but shall be required to act or to refrain from acting (and shall be fully protected in acting or refraining from acting) upon the written direction of the Administrative Agent.

If, in performing its duties under this Agreement, the Collateral Agent is required to decide between alternative courses of action the Collateral Agent shall request written instructions from the Administrative Agent as to the course of action desired by it. The Collateral Agent shall act in accordance with instructions received after such five (5) Business Day period except to the extent it has already, in good faith, taken or committed itself to take action inconsistent with such instructions. The Collateral Agent shall be entitled to rely on the advice of legal counsel and independent accountants in performing its duties hereunder and shall be deemed to have acted in good faith if it acts in accordance with such advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Custody and Preservation</u>. The Collateral Agent is required to hold in custody and preserve any of the Collateral in its possession pursuant to the terms of this Agreement and the standard of care set forth herein, *provided* that the Collateral Agent shall be deemed to have complied with the terms of this Agreement with respect to the custody and preservation of any of the Collateral if it takes such action for that purpose as the Company reasonably requests (or, following the occurrence of a Market Value Event or following the occurrence and during the continuance of an Event of Default, as the Administrative Agent reasonably requests), but failure of the Collateral Agent to comply with any such request at any time shall not in itself be deemed a failure to comply with the terms of this Agreement. The Collateral Agent will not be responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or maintaining the perfection of any liens thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Collateral Agent Not Liable</u>. Except to the extent arising from the gross negligence, willful misconduct, criminal conduct, fraud or reckless disregard of the Collateral Agent, the Collateral Agent shall not be liable by reason of its compliance with the terms of this Agreement with respect to (1) the investment of funds held thereunder in Eligible Investments (other than for losses attributable to the Collateral Agent's failure to make payments on investments issued by the Collateral Agent, in its commercial capacity as principal obligor and not as collateral agent, in accordance with their terms) or (2) losses incurred as a result of the liquidation of any Eligible Investment prior to its stated maturity. It is expressly agreed and acknowledged that the Collateral Agent is not guaranteeing performance of or assuming any liability for the obligations of the other parties hereto or any parties to the Portfolio Investments or other Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Certain Rights and Obligations of the Collateral Agent</u>. Without further consent or authorization from any Lenders, the Collateral Agent may execute any documents or instruments necessary to release any lien encumbering any item of Collateral that is the subject of a sale or other disposition of assets permitted by this Agreement or as otherwise permitted or required hereunder or to which the Required Lenders have otherwise consented. Anything contained herein to the contrary notwithstanding, in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to

67958248. v2

------

a public or private sale, any Agent or Lender may be the purchaser of any or all of such Collateral at any such sale and the Collateral Agent, as agent for and representative of the Lenders (but not any Lender in its individual capacity unless the Required Lenders shall otherwise agree), shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Secured Obligations as a credit on account of the purchase price for any Collateral payable by the purchaser at such sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Collateral Agent, Securities Intermediary and Collateral Administrator Fees and Expenses</u>. The Company agrees to pay to the Collateral Agent, the Securities Intermediary and the Collateral Administrator such fees as the Administrative Agent, the Collateral Agent, the Securities Intermediary, the Collateral Administrator and the Portfolio Manager, may agree in writing, subject to the Priority of Payments. The Company further agrees to pay to the Collateral Agent, the Securities Intermediary and the Collateral Administrator, or reimburse the Collateral Agent, the Securities Intermediary and the Collateral Administrator for paying, reasonable and documented out-of-pocket expenses, including attorney's fees, in connection with this Agreement and the transactions contemplated hereby, subject to the Priority of Payments. The Collateral Agent's, Securities Intermediary's and Collateral Administrator's fees shall be calculated on the basis of a 360-day year and the actual number of days elapsed during the related Calculation Period and shall be based on the product of the quoted number of basis points in the Collateral Agent's separate fee letter with the Company (or the Portfolio Manager on its behalf) and the aggregate principal amount of the Collateral measured as of the Calculation Period State Date relating to each Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Execution by the Collateral Agent, the Securities Intermediary and the Collateral Administrator</u>. The Collateral Agent, the Securities Intermediary and the Collateral Administrator are executing this Agreement solely in their capacity as Collateral Agent, Securities Intermediary and Collateral Administrator, respectively, hereunder and in no event shall have any obligation to make any Advance, provide any Advance or perform any obligation of the Administrative Agent hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Reports by the Collateral Administrator</u>. The Company hereby appoints U.S. Bank Trust Company, National Association as Collateral Administrator and directs the Collateral Administrator to prepare the reports substantially in the form reasonably agreed by the Company, the Collateral Administrator and the Administrative Agent. The Company and the Portfolio Manager shall cooperate with the Collateral Administrator in connection with the preparation of the reports described herein, including calculations relating to the reports contemplated herein or as otherwise reasonably requested hereunder. Without limiting the generality of the foregoing, the Portfolio Manager shall supply in a timely fashion any determinations, designations, classifications or selections made by it relating to a Portfolio Investment, including in connection with the acquisition or disposition thereof, and any information maintained by it that the Collateral Administrator may from time to time reasonably request with respect to the Portfolio Investment and reasonably need to complete the reports required to be prepared by the Collateral Administrator hereunder or reasonably required to permit the Collateral Administrator to perform its obligations hereunder. The Collateral Administrator shall deliver a draft of each such report to the Portfolio Manager and the Portfolio Manager shall have an opportunity to review, verify and approve the contents of the aforesaid reports. To the extent any of the information in such reports conflicts with data or calculations in the records of the Portfolio Manager, the Portfolio Manager shall notify the Collateral Administrator of such discrepancy and use reasonable efforts to assist the Collateral Administrator in reconciling such discrepancy. Upon reasonable request by the Collateral Administrator, the Portfolio Manager further agrees to provide to the Collateral Administrator from time to time during the term of this Agreement, on a timely basis, any information relating to the Portfolio Investments and any proposed purchases, sales or other dispositions thereof as to enable the Collateral Administrator to perform its duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Information Provided to Collateral Agent and Collateral Administrator</u>. Without limiting the generality of any terms of this Section, neither the Collateral Agent nor the Collateral Administrator shall have liability for any failure, inability or unwillingness on the part of the Portfolio Manager, the Administrative Agent, the Company or the Required Lenders to provide accurate and complete information on a timely basis to the Collateral Agent or the Collateral Administrator, as applicable, or otherwise on the part of any such party to comply with the terms of this Agreement, and, absent gross negligence, willful misconduct, criminal conduct, fraud or reckless disregard of the

67958248. v2

------

Collateral Agent or the Collateral Administrator, as applicable, shall have no liability for any inaccuracy or error in the performance or observance on the Collateral Agent's or Collateral Administrator's, as applicable, part of any of its duties hereunder that is caused by or results from any such inaccurate, incomplete or untimely information received by it, or other failure on the part of any such other party to comply with the terms hereof.

ARTICLE X<br>MISCELLANEOUS

SECTION 10.01.<u>Non-Petition; Limited Recourse</u>

. Each of the Collateral Agent, the Securities Intermediary, the Collateral Administrator, the Portfolio Manager and the other parties hereto (other than the Administrative Agent acting at the direction of the Required Lenders) hereby agrees not to commence, or join in the commencement of, any proceedings in any jurisdiction for the bankruptcy, winding-up or liquidation of the Company or any similar proceedings, in each case prior to the date that is one year and one day (or if longer, any applicable preference period plus one day) after the payment in full of all amounts owing to the parties hereto. The foregoing restrictions are a material inducement for the parties hereto to enter into this Agreement and are an essential term of this Agreement. The Administrative Agent or the Company may seek and obtain specific performance of such restrictions (including injunctive relief), including, without limitation, in any bankruptcy, winding-up, liquidation or similar proceedings. The Company shall promptly object to the institution of any bankruptcy, winding-up, liquidation or similar proceedings against it and take all necessary or advisable steps to cause the dismissal of any such proceeding; *provided* that such obligation shall be subject to the availability of funds therefor. Nothing in this Section 10.01 shall limit the right of any party hereto to file any claim or otherwise take any action with respect to any proceeding of the type described in this Section that was instituted by the Company or against the Company by any Person other than a party hereto.

Notwithstanding any other provision of this Agreement or any other Loan Document, no recourse under any obligation, covenant or agreement of the Company or the Portfolio Manager contained in this Agreement shall be had against any incorporator, stockholder, partner, officer, director, member, manager, employee or agent of the Company, the Portfolio Manager or any of their respective Affiliates (solely by virtue of such capacity) by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is solely an obligation of the Company and (with respect to the express obligations of the Portfolio Manager under the Loan Documents) the Portfolio Manager and that no personal liability whatever shall attach to or be incurred by any incorporator, stockholder, officer, director, member, manager, employee or agent of the Company, the Portfolio Manager or any of their respective Affiliates (solely by virtue of such capacity) or any of them under or by reason of any of the obligations, covenants or agreements of the Company or the Portfolio Manager contained in this Agreement or any other Loan Document, or implied therefrom, and that any and all personal liability for breaches by the Company or the Portfolio Manager of any of such obligations, covenants or agreements, either at common law or at equity, or by statute, rule or regulation, of every such incorporator, stockholder, officer, director, member, manager, employee or agent is hereby expressly waived as a condition of and in consideration for the execution of this Agreement.

SECTION 10.02.<u>Notices</u>

. All notices and other communications in respect hereof (including, without limitation, any modifications hereof, or requests, waivers or consents hereunder) to be given or made by a party hereto shall be in writing (including by electronic mail or other electronic messaging system of .pdf or

67958248. v2

------

other similar files) to the other parties hereto at the addresses for notices specified on the Transaction Schedule (or, as to any such party, at such other address as shall be designated by such party in a notice to each other party hereto). All such notices and other communications shall be deemed to have been duly given when (a) transmitted by facsimile, (b) personally delivered, (c) in the case of a mailed notice, upon receipt, or (d) in the case of notices and communications transmitted by electronic mail or any other electronic messaging system, upon delivery, in each case given or addressed as aforesaid.

SECTION 10.03.<u>No Waiver</u>

. No failure on the part of any party hereto to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under this Agreement preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

SECTION 10.04.<u>Expenses; Indemnity; Damage Waiver; Right of Setoff</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Subject to the Priority of Payments, the Company shall pay (1) all fees and reasonable and documented out-of-pocket expenses incurred by the Agents, the Collateral Administrator, the Securities Intermediary and their Related Parties (limited, in the case of legal counsel fees, to the fees, charges and disbursements of one firm of outside counsel for the Administrative Agent and the Lenders, taken as a whole, and one firm of outside counsel for the Collateral Agent, the Collateral Administrator and the Securities Intermediary, taken as a whole (and, in each case, one firm of local counsel for each such group in any applicable jurisdiction)) in connection with the preparation and administration of this Agreement, the Account Control Agreement or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (2) all reasonable and documented out-of-pocket expenses incurred by the Agents, the Collateral Administrator, the Securities Intermediary and the Lenders (limited, in the case of legal counsel fees, to the fees, charges and disbursements of one firm of outside counsel for the Administrative Agent and the Lenders, taken as a whole, and one firm of outside counsel for the Collateral Agent, the Collateral Administrator and the Securities Intermediary, taken as a whole (and, in each case, one firm of local counsel for each such group in any applicable jurisdiction)), in connection herewith, including the enforcement or protection of their rights in connection with this Agreement and the Account Control Agreement, including their rights under this Section, or in connection with the Advances provided by them hereunder, including all such reasonable and documented out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Advances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Subject to the Priority of Payments, the Company shall indemnify the Agents, the Collateral Administrator, the Securities Intermediary, the Lenders and their Related Parties (each such Person being called an "<u>Indemnitee</u>"), against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, (limited, in the case of legal counsel fees, to the fees, charges and disbursements of one firm of outside counsel for the Administrative Agent and the Lenders, taken as a whole, and one firm of outside counsel for the Collateral Agent, the Collateral Administrator and the Securities Intermediary, taken as a whole (and, in each case, one firm of local counsel for each such group in any applicable jurisdiction)), incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (1) the execution or delivery of this Agreement or any agreement or instrument contemplated thereby, the performance by the parties thereto of their respective obligations or the exercise or enforcement of the parties thereto of their respective rights or the consummation of the transactions contemplated hereby, (2) any Advance or the use of the proceeds therefrom, or (3) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto or is pursuing or defending any such action; *provided* that such indemnity

67958248. v2

------

shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from (x) the gross negligence or willful misconduct of such Indemnitee and its Related Parties or (y) the material noncompliance by the Administrative Agent or Lenders of their respective obligations under this Agreement (it being understood that this clause (y) shall not be applicable to an Indemnitee that is not a Related Party of the Administrative Agent or Lender in material noncompliance). This Section 10.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim. Payments under this Section 10.04(b) to the Administrative Agent, the Lenders or their Related Parties shall be made by the Company to the Administrative Agent for the account of the applicable recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)To the extent permitted by Applicable Law, neither the Company nor any Indemnitee shall assert, and each hereby waives, any claim against the Company or any Indemnitee, as applicable, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Transaction Document or any agreement, instrument or transaction contemplated hereby or thereby, any Advance or the use of the proceeds thereof; <u>provided</u>, that nothing contained in this sentence shall limit the Company's indemnification obligations hereunder to the extent that such damages are included in a third party claim in connection with which an Indemnitee is entitled to indemnification hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Company against any of and all the obligations of the Company now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this clause (d) are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)This Section 10.04 shall survive the termination of this Agreement, the repayment of all amounts owing to the Secured Parties hereunder and, if applicable, the earlier resignation or removal of any Indemnitee.

SECTION 10.05.<u>Amendments</u>

. No amendment, modification or waiver in respect of this Agreement will be effective unless in writing (including, without limitation, a writing evidenced by a facsimile transmission or electronic mail) and executed by each of the Agents, the Collateral Administrator, the Securities Intermediary, the Required Lenders, the Company and the Portfolio Manager; *provided*, *however*, that any amendment to this Agreement that the Administrative Agent determines in its commercially reasonable judgment is necessary to effectuate the purposes of Section 1.04 hereof following the occurrence and during the continuance of an Event of Default or following the occurrence of a Market Value Event and which would not result in an increase or decrease in the rights, duties or liabilities of the Portfolio Manager or the Company shall not be required to be executed by the Portfolio Manager or the Company; *provided further* that the Administrative Agent may waive any of the Eligibility Criteria and the requirements set forth in Schedule 3 or Schedule 4 in its sole discretion; *provided further* that none of the Collateral Agent, the Collateral Administrator or the Securities Intermediary shall be required to execute any amendment that affects its rights, duties, protections or immunities; *provided further* that any Material Amendment shall require the prior written consent of each Lender affected thereby.

SECTION 10.06.<u>Successors; Assignments</u>

.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Company may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Portfolio Manager, the Administrative Agent and each Lender (and any attempted assignment or transfer by the Company without such consent shall be null and void) and the Portfolio Manager may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent. Except as expressly set forth herein, nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Subject to the conditions set forth in the Syndication Letter, any Lender may assign all or a portion of its rights and obligations under this Agreement in accordance with the terms specified in the Syndication Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Subject to the conditions set forth in the Syndication Letter, any Lender may sell participations in all or a portion of such Lender's rights and obligations under this Agreement in accordance with the terms specified in the Syndication Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Company, maintain a register on which it enters the name and address of each Lender Participant and the principal amounts (and stated interest) of each Lender Participant's interest in the Advances or other obligations under this Agreement (the "<u>Participant Register</u>"); *provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Lender Participant or any information relating to a Lender Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations or is otherwise required thereunder. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register. The Company agrees that each Lender Participant shall be entitled through the Lender granting such participation (and, for the avoidance of doubt, shall have no direct rights against the Company) to the benefits of Sections 3.01(e) and 3.03 (subject to the requirements and limitations therein, including the requirements under Section 3.03(f) (it being understood that the documentation required under Section 3.03(f) shall be delivered to the Lender that sells the participation)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; *provided* that such Lender Participant (A) agrees to be subject to the provisions of Section 3.01(f) relating to replacement of Lenders as if it were an assignee under paragraph (b) of this Section 10.06 and (B) shall not be entitled to receive any greater payment under Sections 3.01(e) and 3.03, with respect to any participation, than the Lender that sells the participation would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Lender Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Company's request and expense, to use reasonable efforts to cooperate with the Company to effectuate the replacement of Lenders provisions set forth in Section 3.01(f) with respect to any Lender Participant.

SECTION 10.07.<u>Governing Law; Submission to Jurisdiction; Etc</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Governing Law</u>. This Agreement will be governed by and construed in accordance with the law of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Submission to Jurisdiction</u>. Any suit, action or proceedings relating to this Agreement (collectively, "<u>Proceedings</u>") shall be tried and litigated in the courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York City. With respect to any Proceedings, each party hereto irrevocably (i) submits to the non-exclusive jurisdiction of

67958248. v2

------

the courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York City and (ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party. Nothing in this Agreement precludes any party hereto from bringing Proceedings to enforce any judgment against any such party arising out of or relating to this Agreement in the courts of any place where such party or any of its assets may be found or located, nor will the bringing of such Proceedings in any one or more jurisdictions preclude the bringing of such Proceedings in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Waiver of Jury Trial</u>. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

SECTION 10.08.<u>Interest Rate Limitation</u>

. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Advance, together with all fees, charges and other amounts which are treated as interest on such Advance under Applicable Law (collectively the "<u>Charges</u>"), shall exceed the maximum lawful rate (the "<u>Maximum Rate</u>") which may be contracted for, charged, taken, received or reserved by the Lender holding such Advance in accordance with Applicable Law, the rate of interest payable in respect of such Advance hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Advance but were not payable as a result of the operation of this Section 10.08 shall be cumulated and the interest and Charges payable to such Lender in respect of other Advances or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

SECTION 10.09.<u>PATRIOT Act</u>

. Each Lender and Agent that is subject to the requirements of the PATRIOT Act hereby notifies the Company that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify and record information that identifies the Company, which information includes the name and address of the Company and other information that will allow such Lender or Agent to identify the Company in accordance with the PATRIOT Act.

SECTION 10.10.<u>Counterparts</u>

. This Agreement may be executed in any number of counterparts by facsimile or other written form of communication, each of which shall be deemed to be an original as against the party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall be valid, binding, and enforceable against a party when executed and delivered by an authorized individual on behalf of the party by means of (i) an original manual signature; (ii) a faxed, scanned, or photocopied manual signature, or (iii) any other electronic signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, and/or any other relevant electronic signatures law, including any relevant provisions of the UCC (collectively, "<u>Signature Law</u>"), in each case to the extent applicable. Each faxed, scanned, or photocopied manual signature, or other electronic signature, shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature. Each party hereto shall be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or

67958248. v2

------

photocopied manual signature, or other electronic signature, of any other party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity thereof. For the avoidance of doubt, original manual signatures shall be used for execution or indorsement of writings when required under the UCC or other Signature Law due to the character or intended character of the writings.

SECTION 10.11.<u>Headings</u>.

Article and Section headings and the **Table of Contents** used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

SECTION 10.12.<u>Confidentiality</u>.

Each Agent and each Lender agrees to maintain the confidentiality of the Information for a period of two (2) years after receipt thereof (or, with respect to Information relating to or provided by an obligor in respect of a Portfolio Investment, for a period commencing upon receipt thereof and ending on the date on which the confidentiality obligations of the Company with respect to such obligor terminate), except that Information may be disclosed (i) to its and its Affiliates' directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent requested by any regulatory authority (including any self-regulatory authority), (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this Agreement, (v) in connection with the exercise of any remedies hereunder, any sale of Portfolio Investments by or at the direction of the Administrative Agent pursuant to Section 1.04 hereof or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section 10.12, to (x) any assignee of or Participant in (to the extent such Person is permitted to become an assignee or Participant hereunder), or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (y) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Company and its obligations, (vii) with the consent of the Company or (viii) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section 10.12 by the delivering party or its Affiliates or (y) becomes available to any Agent or Lender on a nonconfidential basis from a source other than the Company. Each party's obligations under this Section 10.12 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Financing Commitments, and the repayment, satisfaction or discharge of all obligations under any Loan Document. Any Person required to maintain the confidentiality of Information as provided in this Section 10.12 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord its own confidential information.

SECTION 10.13.<u>Acknowledgement and Consent to Bail-In of EEA Financial Institutions.</u>

Notwithstanding anything to the contrary in this Agreement or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an Affected Financial Institution arising under this Agreement may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any applicable Resolution Authority.

As used herein:

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"<u>EEA Financial Institution</u>" means (a) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

67958248. v2

------

"<u>Resolution Authority</u>" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Write-Down and Conversion Powers</u>" means (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

67958248. v2

------

**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

FBCC JUPITER FUNDING, LLC,<br>as Company

By__________________________________<br>Name:<br>Title:

FRANKLIN BSP CAPITAL CORPORATION,<br>as Portfolio Manager

By__________________________________<br>Name:<br>Title:

67958248. v2

------

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Collateral Agent

By__________________________________<br>Name:<br>Title:

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Collateral Administrator

By__________________________________<br>Name:<br>Title:

U.S. BANK NATIONAL ASSOCIATION, as Securities Intermediary

By__________________________________<br>Name:<br>Title:

67958248. v2

------

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Administrative Agent

By__________________________________<br>Name: James Greenfield<br>Title: Executive Director

<u>The Lenders</u>

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Lender

By__________________________________<br>Name: James Greenfield<br>Title: Executive Director

67958248. v2

------

SCHEDULE 1

**Transaction Schedule**

---

| | | | |
|:---|:---|:---|:---|
| **1.** | **Types of Financing** | **Available** | **Financing Limit** |

---

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 2 -

---

| | | | | |
|:---|:---|:---|:---|:---|
| Advances | Advances | yes | yes | As of the Second Amendment Date: U.S.$1,050,000,000, consisting of U.S.$800,000,000 *plus* the Second Amendment Commitment Increase, as reduced from time to time pursuant to Section 4.07. Notwithstanding anything in this Agreement to the contrary, (I) the Dollar Equivalent of the aggregate outstanding principal amount of all Advances denominated in any Permitted Non-USD Currency may not exceed an amount equal to the lesser of (A) the product of (i) 30% and (ii) the Financing Limit then in effect and (B) the Collateral Principal Amount of all Portfolio Investments denominated in any Permitted Non-USD Currency, (II) the Dollar Equivalent of the aggregate outstanding principal amount of all Advances denominated in GBP may not exceed an amount equal to the lesser of (A) the product of (i) 10% and (ii) the Financing Limit then in effect and (B) the Collateral Principal Amount of all Portfolio Investments denominated in GBP, (III) the Dollar Equivalent of the aggregate outstanding principal amount of all Advances denominated in AUD may not exceed an amount equal to the lesser of (A) the product of (i) 5% and (ii) the Financing Limit then in effect and (B) the Collateral Principal Amount of all Portfolio Investments denominated in AUD, and (IV) the Dollar Equivalent of the aggregate outstanding principal amount of all Advances denominated in EUR may not exceed an amount equal to the lesser of (A) the product of (i) 10% and (ii) the Financing Limit then in effect and (B) the Collateral Principal Amount of all Portfolio Investments denominated in EUR. |
| **2.** | **Lenders** | **Lenders** | **Financing Commitment** | **Financing Commitment** |

---

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 3 -

---

| | | |
|:---|:---|:---|
|  | JPMorgan Chase Bank, National Association | As of the Second Amendment Date: U.S.$1,050,000,000, consisting of U.S.$800,000,000 *plus* the Second Amendment Commitment Increase, as reduced from time to time pursuant to Section 4.07. Notwithstanding anything in this Agreement to the contrary, (I) the Dollar Equivalent of the aggregate outstanding principal amount of all Advances denominated in any Permitted Non-USD Currency may not exceed an amount equal to the lesser of (A) the product of (i) 30% and (ii) the Financing Limit then in effect and (B) the Collateral Principal Amount of all Portfolio Investments denominated in any Permitted Non-USD Currency, (II) the Dollar Equivalent of the aggregate outstanding principal amount of all Advances denominated in GBP may not exceed an amount equal to the lesser of (A) the product of (i) 10% and (ii) the Financing Limit then in effect and (B) the Collateral Principal Amount of all Portfolio Investments denominated in GBP, (III) the Dollar Equivalent of the aggregate outstanding principal amount of all Advances denominated in AUD may not exceed an amount equal to the lesser of (A) the product of (i) 5% and (ii) the Financing Limit then in effect and (B) the Collateral Principal Amount of all Portfolio Investments denominated in AUD, and (IV) the Dollar Equivalent of the aggregate outstanding principal amount of all Advances denominated in EUR may not exceed an amount equal to the lesser of (A) the product of (i) 10% and (ii) the Financing Limit then in effect and (B) the Collateral Principal Amount of all Portfolio Investments denominated in EUR. |
| **3.** | **Scheduled Termination Date**: | October 4, 2029 |
| **4.** | **Interest Rates** |  |
|  | Applicable Margin for Advances: | With respect to interest based on any Benchmark, 2.15% per annum (subject to increase in accordance with Section 3.01(b)); provided that, in the case of Advances denominated in GBP, the Applicable Margin for Advances shall be the applicable percentage specified above plus 0.1193% per annum.<br>With respect to interest based on the Base Rate, 2.15% per annum (subject to increase in accordance with Section 3.01(b)); provided that, (x) in the case of Advances denominated in GBP, the Applicable Margin for Advances shall be the applicable percentage specified above plus 0.1193% per annum. |
| **5.** | **Account Numbers** |  |
|  | Custodial Account: | 225999-700 |

---

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 4 -

---

| | | | |
|:---|:---|:---|:---|
| | Interest Collection Account: | 225999-201 | 225999-201 |
| &nbsp;&nbsp;Principal Collection Account: | &nbsp;&nbsp;Principal Collection Account: | &nbsp;&nbsp;Principal Collection Account: | 225999-202 |
| | MV Cure Account: | 225999-701 | 225999-701 |
| | Unfunded Exposure Account: | 225999-205 | 225999-205 |
| | <br>Permitted Non-USD Currency Accounts: | <br>Permitted Non-USD Currency Accounts: | <br>Permitted Non-USD Currency Accounts: |
| | AUD: | | |
| | AUD Custodial Account: | 225999-710 | 225999-710 |
| | AUD Interest Collection Account: | 225999-210 | 225999-210 |
| | AUD Principal Collection Account: | 225999-214 | 225999-214 |
| | <br>CAD: | | |
| | CAD Custodial Account: | 225999-711 | 225999-711 |
| | CAD Interest Collection Account: | 225999-212 | 225999-212 |
| | CAD Principal Collection Account: | 225999-215 | 225999-215 |
| | EUR: | | |
| | EUR Custodial Account: | 225999-713 | 225999-713 |
| | EUR Interest Collection Account: | 225999-211 | 225999-211 |
| | EUR Principal Collection Account: | 225999-217 | 225999-217 |
| | GBP: | | |
| | GBP Custodial Account: | 225999-712 | 225999-712 |
| | GBP Interest Collection Account: | 225999-213 | 225999-213 |
| | GBP Principal Collection Account: | 225999-216 | 225999-216 |
| **6.** | **Market Value Trigger**: | 70.0% | 70.0% |
| **7.** | **Market Value Cure Level**: | 60.0% | 60.0% |
| **8**. | **Purchases of Restricted Securities** |  |  |
|  | Notwithstanding anything herein to the contrary, no Portfolio Investment may constitute, at the time of initial purchase, a Restricted Security. As used herein, "<u>Restricted Security</u>" means any security that forms part of a new issue of publicly issued securities (a) with respect to which an Affiliate of any Lender that is a "broker" or a "dealer", within the meaning of the Securities Exchange Act of 1934, participated in the distribution as a member of a selling syndicate or group within 30 days of the proposed purchase by the Company and (b) which the Company proposes to purchase from any such Affiliate of any Lender.  | Notwithstanding anything herein to the contrary, no Portfolio Investment may constitute, at the time of initial purchase, a Restricted Security. As used herein, "<u>Restricted Security</u>" means any security that forms part of a new issue of publicly issued securities (a) with respect to which an Affiliate of any Lender that is a "broker" or a "dealer", within the meaning of the Securities Exchange Act of 1934, participated in the distribution as a member of a selling syndicate or group within 30 days of the proposed purchase by the Company and (b) which the Company proposes to purchase from any such Affiliate of any Lender.  | Notwithstanding anything herein to the contrary, no Portfolio Investment may constitute, at the time of initial purchase, a Restricted Security. As used herein, "<u>Restricted Security</u>" means any security that forms part of a new issue of publicly issued securities (a) with respect to which an Affiliate of any Lender that is a "broker" or a "dealer", within the meaning of the Securities Exchange Act of 1934, participated in the distribution as a member of a selling syndicate or group within 30 days of the proposed purchase by the Company and (b) which the Company proposes to purchase from any such Affiliate of any Lender.  |

---

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 5 -

---

| | | |
|:---|:---|:---|
| <u>Addresses for Notices</u> | <u>Addresses for Notices</u> | <u>Addresses for Notices</u> |
| **The Company**: | FBCC Jupiter Funding, LLC<br>c/o Benefit Street Partners L.L.C.<br>1 Madison Ave, Floor 16<br>New York, NY 10010 | Attn: Michael Frick<br>Telephone: (212) 588-6981<br>Email: m.frick@benefitstreetpartners.com |
| **The Portfolio Manager**: | Franklin BSP Capital Corporation<br>c/o Benefit Street Partners L.L.C.<br>1 Madison Ave, Floor 16<br>New York, NY 10010 | Attn: Michael Frick<br>Telephone: (212) 588-6981<br>Email: m.frick@benefitstreetpartners.com |
| **The Administrative Agent**: | JPMorgan Chase Bank, National Association<br>c/o JPMorgan Services Inc.<br>500 Stanton Christiana Rd.,<br>3rd Floor<br>Newark, Delaware 19713 | Attention: Nicholas Rapak<br>Telephone: (302) 634-4663 |
|  | <u>with a copy to</u> |  |
|  | JPMorgan Chase Bank, National Association<br>383 Madison Ave.<br>New York, New York 10179 | Attention: James Greenfield<br>Telephone: 212-834-9340<br>Email:<br>james.r.greenfield@jpmorgan.com<br>With a copy to:<br>de_custom_business@jpmorgan.com |
| **The Collateral Agent**: | U.S. Bank Trust Company, National Association<br>One Federal Street, 3<sup>rd</sup> Floor<br>Boston, Massachusetts, 02110 | Attention: Global Corporate Trust – FBCC Jupiter Funding, LLC<br>Email: BDCABostonCustody@usbank.com, with a copy to Stanley.Wong@usbank.com |
| **The Securities Intermediary**: | U.S. Bank National Association<br>One Federal Street, 3<sup>rd</sup> Floor<br>Boston, Massachusetts, 02110 | Attention: Global Corporate Trust – FBCC Jupiter Funding, LLC<br>Email: BDCABostonCustody@usbank.com, with a copy to Stanley.Wong@usbank.com |
| **The Collateral Administrator**: | U.S. Bank Trust Company, National Association<br>One Federal Street, 3<sup>rd</sup> Floor<br>Boston, Massachusetts, 02110 | Attention: Global Corporate Trust – FBCC Jupiter Funding, LLC<br>Email: BDCABostonCustody@usbank.com, with a copy to Stanley.Wong@usbank.com |

---

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 6 -

---

| | | |
|:---|:---|:---|
| **JPMCB**: | JPMorgan Chase Bank, National Association<br>c/o JPMorgan Services Inc.<br>500 Stanton Christiana Rd.,<br>3rd Floor<br>Newark, Delaware 19713 | Attention: Nicholas Rapak<br>Telephone: (302) 634-4663 |
|  | <u>with a copy to</u>:<br>JPMorgan Chase Bank, National Association<br>383 Madison Ave.<br>New York, New York 10179 | <br>Attention: James Greenfield<br>Telephone: 212-834-9340 |
| **Each other Lender**: | The address (or facsimile number or electronic mail address) provided by it to the Administrative Agent. |  |

---

67958248. v2

------

SCHEDULE 2

**Contents of Notices of Acquisition**

Each Notice of Acquisition shall include the following information for the related Portfolio Investment(s):

JPMorgan Chase Bank, National Association,<br>as Administrative Agent<br>c/o JPMorgan Services Inc.<br>500 Stanton Christiana Rd., 3rd Floor<br>Attention: Nicholas Rapak<br>Email: de_custom_business@jpmorgan.com

JPMorgan Chase Bank, National Association,<br>as Administrative Agent<br>383 Madison Avenue<br>New York, New York 10179<br>Attention: Christopher Cestaro

Email:&nbsp;&nbsp;&nbsp;&nbsp;NA_Private_Financing_Diligence@jpmorgan.com

JPMorgan Chase Bank, National Association,<br>as Lender<br>c/o JPMorgan Services Inc.<br>500 Stanton Christiana Rd., 3rd Floor<br>Newark, Delaware 19713<br>Attention: Nicholas Rapak

cc:

U.S. Bank Trust Company, National Association, as Collateral Agent and Collateral Administrator

One Federal Street, 3<sup>rd</sup> Floor

Boston, Massachusetts 02110

Attention: Global Corporate Trust – FBCC Jupiter Funding, LLC

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 2 -

Ladies and Gentlemen:

Reference is hereby made to the Loan and Security Agreement, dated as of October 4, 2023 (as amended, the "<u>Agreement</u>"), among FBCC Jupiter Funding, LLC, as borrower (the "<u>Company</u>"), JPMorgan Chase Bank, National Association, as administrative agent (the "<u>Administrative Agent</u>"), Franklin BSP Capital Corporation, as portfolio manager (the "<u>Portfolio Manager</u>"), the lenders party thereto and the collateral agent, collateral administrator and securities intermediary party thereto. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given such terms in the Agreement.

Pursuant to the Agreement, the Portfolio Manager hereby [requests approval for the Company to acquire][notifies the Administrative Agent of the Company's intention to acquire] the following Portfolio Investment(s):<sup>1</sup>

<sup>1</sup> Company to complete as applicable.

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 3 -

---

| |
|:---|
| Fund |
| Issuer / Obligor |
| Jurisdiction |
| Identifier (LoanX; CUSIP) |
| Requested Notional Amount |
| Currency |
| Asset Class |
| Current Pay (Y/N) |
| Syndication Type |
| Lien |
| Tranche Size |
| Price |
| Spread / Coupon |
| Reference Rate |
| Reference Rate Floor |
| Maturity |
| Moody's Industry Classification |
| LTM EBITDA (In Millions) |
| LTM Capital Expenditures (in Millions) |
| Leverage Through Tranche (Net) |
| Interest Coverage |
| Financial Covenants |
| Security Identifier |
| Security Description |
| Quantity |
| Partial PIK Portfolio Investment (Y/N) |
| ABF Portfolio Investment (Y/N) |

---

To the extent available, we have included herewith (1) the material underlying instruments (including, in the case of a Loan, the final credit agreement and collateral and security documents) relating to each such Portfolio Investment, (2) an audited financial statement for the previous most recently ended three years of the obligor of each such Portfolio Investment, (3) quarterly statements for the previous most recently ended eight fiscal quarters of the obligor of each such Portfolio Investment, (4) any appraisal or valuation reports conducted by third parties in connection with the proposed investment by the Company, (5) applicable "proof of existence" details (if requested by the Administrative Agent),

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;- 4 -

(6) investment committee memo and (7) in the case of an ABF Portfolio Investment, any appraisal or valuation reports conducted by third parties on the underlying assets pursuant to the requirements of the related underlying instruments. The Portfolio Manager acknowledges that it will provide such other information from time to time reasonably requested by the Administrative Agent.

We hereby certify that all conditions to the Purchase of such Portfolio Investment(s) set forth in Section 1.03 of the Agreement are satisfied.

Very truly yours,

Franklin BSP Capital Corporation,<br>as Portfolio Manager

By_________________________________<br>Name:<br>Title:

67958248. v2

------

SCHEDULE 3

**<u>Eligibility Criteria</u>**

1. Such obligation is a Senior Secured Loan (including a Recurring Revenue Loan), a Second Lien Loan or a corporate debt security and is not a Mezzanine Obligation, a Synthetic Security, a Zero-Coupon Security, a Structured Finance Obligation, a Participation Interest (other than Initial Portfolio Investments), a Revolving Loan or a letter of credit or an interest therein.

2. Such obligation does not require the making of any future advance or payment by the Company to the issuer thereof or any related counterparty except in connection with a Delayed Funding Term Loan and the unfunded portion of any such Delayed Funding Term Loan shall be denominated in USD.

3. Such obligation is (i) eligible to be entered into by, sold or assigned to the Company and pledged to the Collateral Agent and (ii) able to be sold by the Administrative Agent, the Collateral Agent or their respective designees, including following the occurrence of an Event of Default or Market Value Event and, to the extent there is an express prohibition (other than customary transfer restrictions) on the pledging or transfer of such obligation, a consent from the applicable general partner, managing member, board of directors or any similar governing body of the obligor of the Portfolio Investment authorizing and consenting to the pledge or transfer of such obligation shall have been obtained.

4. Such obligation is denominated and payable in USD or a Permitted Non-USD Currency and purchased at a price that is at least 80% of the par amount of such obligation.

5. Such obligation is issued by a company organized in an Eligible Jurisdiction.

6. It is an obligation upon which no payments are subject to deduction or withholding for or on account of any withholding Taxes imposed by any jurisdiction unless the related obligor is required to make "gross-up" payments that cover the full amount of any such withholding Taxes (subject to customary conditions to such payments which the Company (or the Portfolio Manager on behalf of the Company) in its good faith reasonable judgment expects to be satisfied).

7. Such obligation is not subject to an event of default (as defined in the underlying instruments for such obligation) in accordance with its terms (including the terms of its underlying instruments after giving effect to any grace and/or cure period set forth in the related loan agreement or other primary underlying instruments, but not to exceed five (5) Business Days) and no Indebtedness of the obligor thereon ranking *pari passu* with or senior to such obligation is in default with respect to the payment of principal or interest or is subject to any other event of default that would trigger a default under the related loan agreement or other primary underlying instruments (after giving effect to any grace and/or cure period set forth in the related loan agreement or other primary underlying instruments, but not to exceed five (5) Business Days) (a "<u>Defaulted Obligation</u>").

8. The timely repayment of such obligation is not subject to non-credit-related risk as determined by the Portfolio Manager in its good faith and reasonable judgment.

9. It is not at the time of purchase or commitment to purchase the subject of an offer other than an offer pursuant to the terms of which the offeror offers to acquire a debt obligation in exchange for consideration consisting solely of cash in an amount equal to or greater than the full face amount of such debt obligation plus any accrued and unpaid interest.

10. Such obligation is not an equity security and does not provide, on the date of acquisition, for conversion or exchange at any time over its life into an equity security.

11. Such obligation provides for periodic payments of interest thereon in cash at least semi-annually (other than with respect to a Partial PIK Portfolio Investment).

67958248. v2

------

12. Such obligation will not cause the Company or the pool of Collateral to be required to register as an investment company under the Investment Company Act of 1940, as amended.

13. The Portfolio Investment has been, or substantially concurrently with the acquisition thereof will be, Delivered to the Collateral Agent.

14. In the case of a Portfolio Investment that is a Loan, (i) to the knowledge of the Company and the Portfolio Manager after reasonable inquiry, the Administrative Agent is an "eligible Assignee" (as such term, or comparable term, is defined in the documents evidencing such Portfolio Investment) and such Portfolio Investment is otherwise permitted to be entered into by, sold or assigned to the Administrative Agent and (ii) the Company has delivered to the Collateral Agent to hold in custody in accordance with this Agreement (to be provided to the Administrative Agent upon written request (including via email) following the occurrence and during the continuance of an Event of Default or following the occurrence of a Market Value Event) an assignment agreement duly executed by the administrative agent (as required to effect an assignment pursuant to such underlying instruments) in respect of such Portfolio Investment, naming the Administrative Agent as assignee; *provided* that the preceding clause (ii) shall be applicable with respect to each Portfolio Investment only if the Company or the Portfolio Manager (or in each case, an affiliate thereof) acts as the administrative agent in respect of such Portfolio Investment; *provided further* that with respect of each such Initial Portfolio Investment the Company shall have delivered any documents required under the preceding clause (ii) by November 18, 2023.

15. Following the relevant Trade Date, such Portfolio Investment has not been amended to (a) reduce the principal amount of such Portfolio Investment, (b) postpone the maturity date or any scheduled prepayment date in respect of such Portfolio Investment, (c) alter the pro rata allocation or sharing of payments or distributions required by any related underlying instruments in a manner adverse to the Company, (d) release any material guarantor of such Portfolio Investment from its obligations, (e) terminate or release any lien on a material portion of the collateral securing such Portfolio Investment or (f) in the case of an ABF Portfolio Investment, materially modify (i) the valuation criteria, metrics or methodology of the assets underlying such ABF Portfolio Investment or (ii) the frequency or delivery requirements of the underlying appraisals and field exams, in each case without the prior written consent of the Administrative Agent (at the direction of the Required Lenders); *provided* that this clause 15 shall not be applicable for purposes of Section 1.03 of the Agreement.

16. Without limitation to clause 7 above, in the case of a Recurring Revenue Loan, (i) the obligor on such obligation has not violated any financial covenant contained in such obligation's underlying instruments and (ii) no such financial covenant has been amended, modified or waived and, without limitation to the foregoing, no amendment to the underlying instruments with respect to such Portfolio Investment that relates to a Specified Matter has been entered into, in each case, since the date of the Purchase Commitment for such obligation (in the case of this subclause (ii), unless otherwise consented to by the Administrative Agent in its sole discretion).

17. Such obligation is not underwritten as a real estate loan principally secured by real property.

18. In the case of a Portfolio Investment that is an ABF Portfolio Investment, such ABF Portfolio Investment satisfies such other eligibility criteria as determined by the Administrative Agent at the time it determines the eligibility of such ABF Portfolio Investment pursuant to Section 1.02(c).

The following capitalized terms used in this Schedule 3 shall have the meanings set forth below:

"<u>Eligible Jurisdictions</u>" means the United States and any State therein, Canada, the United Kingdom, Australia, Norway, New Zealand, Switzerland and any country within the European Economic Area (other than Romania, Bulgaria, Cyprus and Malta).

67958248. v2

------

"<u>Letter of Credit</u>" means a facility whereby (i) a fronting bank ("LOC Agent Bank") issues or will issue a letter of credit ("LC") for or on behalf of a borrower pursuant to an underlying instrument, (ii) if the LC is drawn upon, and the borrower does not reimburse the LOC Agent Bank, the lender/participant is obligated to fund its portion of the facility and (iii) the LOC Agent Bank passes on (in whole or in part) the fees and any other amounts it receives for providing the LC to the lender/participant.

"<u>Recurring Revenue Loan</u>" means a Senior Secured Loan underwritten based on the definition of "annualized recurring revenue" (or an equivalent term) in the underlying instruments, or if no such definition exists in such underlying instruments, all recurring maintenance, service, support, hosting, subscription and other revenues identified by the Portfolio Manager, including, without limitation, software as a service subscription revenue, and designated as a Recurring Revenue Loan by Administrative Agent in connection with its initial approval of such Loan in accordance with this Agreement.

"<u>Specified Matter</u>" means any Amendment of a Portfolio Investment that (a) reduces the principal amount of such Portfolio Investment, (b) reduces the rate of interest payable on such Portfolio Investment, (c) postpones the due date of any scheduled payment or distribution in respect of such Portfolio Investment, (d) alters the pro rata allocation or sharing of payments or distributions required by any related underlying instrument in a manner adverse to the Company, (e) releases any material guarantor of such Portfolio Investment from its obligations, (f) terminates or releases any lien on a material portion on the collateral securing such Portfolio Investment, (g) changes any of the provisions of any such underlying instrument specifying the number or percentage of lenders required to effect any of the foregoing or (h) materially changes any financial maintenance covenant.

"<u>Structured Finance Obligation</u>" means any obligation issued by a special purpose vehicle and secured directly by, referenced to, or representing ownership of, a pool of receivables or other financial assets of any obligor, including collateralized debt obligations and mortgage-backed securities.

"<u>Synthetic Security</u>" means a security or swap transaction, other than a participation interest or a letter of credit, that has payments associated with either payments of interest on and/or principal of a reference obligation or the credit performance of a reference obligation.

"<u>Zero-Coupon Security</u>" means any debt security that by its terms (a) does not bear interest for all or part of the remaining period that it is outstanding or (b) pays interest only at its stated maturity.

67958248. v2

------

SCHEDULE 4

**<u>Concentration Limitations</u>**

The "<u>Concentration Limitations</u>" shall be satisfied on any date of determination if, in the aggregate, the Portfolio Investments (other than any Ineligible Investments) owned (or in relation to a proposed purchase of a Portfolio Investment, proposed to be owned) by the Company comply with all the requirements set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Portfolio Investments issued by a single obligor and its Affiliates may not exceed an aggregate principal balance equal to 4% of the Collateral Principal Amount; *provided* that Portfolio Investments which are Senior Secured Loans issued by three (3) obligors and their respective Affiliates may each constitute up to an aggregate principal balance equal to 6% of the Collateral Principal Amount, so long as any Portfolio Investment (or portion thereof) that causes the aggregate principal balance of the Portfolio Investments issued by either such obligor or its Affiliates to exceed 4% of the Collateral Principal Amount is not a Recurring Revenue Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Not more than 20% of the Collateral Principal Amount may consist of Portfolio Investments that are Second Lien Loans, Recurring Revenue Loans or a corporate debt security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Not less than 80% of the Collateral Principal Amount may consist of Senior Secured Loans and cash and Cash Equivalents on deposit in the Principal Collection Account as Principal Proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Not more than 20% of the Collateral Principal Amount may consist of Portfolio Investments that are issued by obligors that belong to the same Moody's Industry Classification; *provided* that (i) Portfolio Investments that are issued by obligors that belong to one Moody's Industry Classification (other than Industry Codes 12, 21, 22 and 30) may constitute up to 25% of the Collateral Principal Amount and (ii) Portfolio Investments that are issued by obligors that belong to one Moody's Industry Classification (other than Industry Codes 12, 21, 22 and 30) may constitute up to 30% of the Collateral Principal Amount. As used herein, "<u>Moody's Industry Classifications</u>" means the industry classifications set forth in Schedule 6 hereto, as such industry classifications shall be updated at the option of the Portfolio Manager (with the consent of the Administrative Agent) if Moody's publishes revised industry classifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The Unfunded Exposure Amount shall not exceed 5% of the Collateral Principal Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Not more than an aggregate of 30.0% of the Collateral Principal Amount may consist of Portfolio Investments denominated in a Permitted Non-USD Currency; *provided*, that (v) not more than an aggregate of 10.0% of the Collateral Principal Amount may consist of Portfolio Investments denominated in CAD, (w) not more than an aggregate of 10.0% of the Collateral Principal Amount may consist of Portfolio Investments denominated in Euro, (x) not more than an aggregate of 10.0% of the Collateral Principal Amount may consist of Portfolio Investments denominated in GBP, and (y) not more than an aggregate of 5.0% of the Collateral Principal Amount may consist of Portfolio Investments denominated in AUD.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Not more than an aggregate of 30.0% of the Collateral Principal Amount may consist of Portfolio Investments whose obligors are organized in Eligible Jurisdictions other than the United States; *provided*, that (v) not more than an aggregate of 10.0% of the Collateral Principal Amount may consist of Portfolio Investments whose Obligors are organized in Canada, (w) not more than an aggregate of 10.0% of the Collateral Principal

67958248. v2

------

Amount may consist of Portfolio Investments whose Obligors are organized in the European Union, (x) not more than an aggregate of 10.0% of the Collateral Principal Amount may consist of Portfolio Investments whose obligors are organized in United Kingdom, and (y) not more than an aggregate of 5.0% of the Collateral Principal Amount may consist of Portfolio Investments whose Obligors are organized in Australia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Not more than an aggregate of 10% of the Collateral Principal Amount may consist of Recurring Revenue Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.Not more than 20% of the Collateral Principal Amount may consist of Partial PIK Portfolio Investments which are currently deferring interest payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.Not more than 10% of the Collateral Principal Amount may consist of ABF Portfolio Investments.

67958248. v2

------

SCHEDULE 5

**<u>Initial Portfolio Investments</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Security Code** | **Issuer Group** | **Instrument** | **Notional (USD)** |

---

---

| | | | |
|:---|:---|:---|:---|
| Access_TL | Access Healthcare | TL | 21285862.50 |
| Advanced_DDTL | Advanced Dermatology | DDTL | 1174086.02 |
| Advanced_TL | Advanced Dermatology | TL | 5727120.00 |
| LX207656 | Alera | TL | 2880565.83 |
| LX207657_F | Alera | TL | 4594780.59 |
| AMC_TL21 | AMC Situs | TL | 6340608.87 |
| LX195013 | American Rock Salt | 2nd Lien TL | 6010000.00 |
| LX195011 | American Rock Salt | TLB | 2028600.00 |
| AmVision_DDTL | American Vision Partners | DDTL | 2985840.00 |
| AmVision_TL | American Vision Partners | TL | 7230217.50 |
| Aptos_Bond | Aptos | 1st Lien Nts | 4183000.00 |
| LX194868 | Ascensus | 2nd Lien TL | 6080000.00 |
| Avalara_TL | Avalara | TL | 19896000.00 |
| LX195993 | Aveanna Healthcare Holdings Inc | TLB | 444964.00 |
| Axia_TL | Axia Women's Health | TL | 12490100.01 |
| LX204412 | Beeline | TL | 5527667.69 |
| LX204412 | Beeline | TL | 251600.00 |
| CPE_TL | Center Phase Energy | TL | 11749320.00 |
| NPD_TL | Circana | TL | 17064170.06 |
| Cisive_TL | Cisive | TL | 4976012.50 |
| ComLink_DDTL | Comlinkdata | DDTL | 2614432.50 |
| ComLink_TL | Comlinkdata | TL | 7516125.00 |
| LX203012 | Community Brands | TL | 9105737.50 |
| LX193778 | Corelogic Inc | 2nd Lien | 4645000.00 |
| Coronis_TL | Coronis Health | TL | 24177300.00 |
| Cross_TL | CrossCountry Consulting | TL | 7201260.00 |
| LX194848 | Division Holding Corp | TLB | 3722692.50 |
| LX203848 | Eliassen | TL | 5708860.00 |
| FGT_TL | Fast Growing Trees | TL | 9609660.00 |
| Ferraro_DDTL | Ferraro Foods | DDTL | 2430980.00 |
| Ferraro_TL | Ferraro Foods | TL | 11235700.00 |
| Ferraro_TL22 | Ferraro Foods | TL | 832462.50 |
| Ferraro_DDTL22 | Ferraro Foods | DDTL | 2905000.00 |
| FE_TL | First Eagle | Floating Note | 13860000.00 |
| LX198930 | Florida Food Products, Inc | TLB | 12568900.00 |
| Galway_TL | Galway Holdings | TL | 13472736.48 |
| Geosyntec_TL | Geosyntec | TL | 11465190.00 |
| IMIA_DDTL | IMIA | DDTL | 2029361.25 |
| IMIA_TL | IMIA | TL | 20060510.00 |
| Innova_DDTL21B | InnovaCare | DDTL | 1566777.38 |
| Innova_TL21 | InnovaCare | TL | 9402674.50 |
| Innova_DDTL21 | InnovaCare | DDTL | 796042.72 |
| Inovar_DDTL | Inovar Packaging | DDTL | 3821795.00 |
| Inovar_TL | Inovar Packaging | TL | 8935740.00 |
| Insight_TL | Insight Global | TL | 7976917.50 |

---

67958248. v2

------

---

| | | | |
|:---|:---|:---|:---|
| Insight_TL22 | Insight Global | TL | 143804.51 |
| LX194199 | Kissner Milling Co Ltd | TLB | 1092383.97 |
| LX191638 | Lacerta | TL | 4884750.00 |
| LX193072 | Liquid Tech Solutions | TL | 5424788.77 |
| Maclean_TL | MacLean Power Systems | TL | 12869745.00 |
| Media_DDTL | Media NewCo | DDTL | 4814020.08 |
| Media_TL | Media NewCo | OpCo TL | 12159206.92 |
| Odessa_TL | Odessa Technologies | TL | 6490837.50 |
| Plural_TL | Pluralsight Inc | TL | 7499000.00 |
| Plural_TL21 | Pluralsight Inc | TL | 2680000.00 |
| Point_TL | Point Broadband | TL | 8663075.00 |
| LX195374 | Proofpoint Inc | 2nd Lien | 3380000.00 |
| LX192753 | RealPage Inc | 2nd Lien | 5445000.00 |
| LX194778 | Relativity | TL | 2290659.39 |
| Resource_TL | ResourcePro | TL | 11064505.00 |
| LX208206 | Risk Strategies | TL | 1364793.64 |
| LX200468 | Risk Strategies | TLC | 6814138.71 |
| LX208206 | Risk Strategies | TL | 663019.02 |
| Roadsafe_DDTL22_F | Roadsafe | TL | 4337278.03 |
| Roadsafe_TL | Roadsafe | TL | 3313380.00 |
| LX205606 | Safe Fleet | DDTL | 6007320.00 |
| Simpli_TL | Simpli.fi | TL | 15886080.00 |
| LX195984 | Skillsoft Corp | TLB | 586226.49 |
| SunMed_TL | SunMed | TL | 3844522.50 |
| Supple_TL | Supplemental Health Care | TL | 14817355.00 |
| Supple_TL22 | Supplemental Health Care | TL | 16631010.00 |
| LX194587 | Therapy Brands | 2nd Lien | 1370000.00 |
| LX194584 | Therapy Brands | TL | 1432485.00 |
| LX194587 | Therapy Brands | 2nd Lien | 577000.00 |
| LX194584 | Therapy Brands | TL | 369181.82 |
| Tivity_TL22 | Tivity Health | TL | 31940635.00 |
| LX200350 | TRC Companies | 2nd Lien | 7045000.00 |
| LX203817 | Trillium Flow Technologies | TL | 4439160.00 |
| Trinity_DDTL | Trinity Consultants | DDTL | 3001000.00 |
| Trinity_TL | Trinity Consultants | TL | 8788000.00 |
| Triple_TL | Triplelift | TL | 11873668.32 |
| USOral_DDTL | US Oral Surgery | DDTL | 2176000.00 |
| USOral_TL | US Oral Surgery | TL | 5495000.00 |
| USSalt_TL21 | US Salt | TL | 8532070.00 |
| LX194688 | USIC Holdings | 2nd Lien | 2449000.00 |
| LX199952 | Vantage Elevator Solutions | 2nd Lien | 14304000.00 |
| Vensure_TL | Vensure | TL | 4760245.02 |
| WCD_TL | West Coast Dental | TL | 8397180.00 |
| Westwood_TL | Westwood Professional Services | TL | 3660300.00 |
| Window_TL | Window Nation | TL | 12776153.85 |

---

67958248. v2

------

SCHEDULE 6

---

| | |
|:---|:---|
| Moody's Industry Classifications | Moody's Industry Classifications |
| Industry Code | Description |
| 1 | Aerospace & Defense |
| 2 | Automotive |
| 3 | Banking, Finance, Insurance & Real Estate |
| 4 | Beverage, Food & Tobacco |
| 5 | Capital Equipment |
| 6 | Chemicals, Plastics & Rubber |
| 7 | Construction & Building |
| 8 | Consumer goods: Durable |
| 9 | Consumer goods: Non-durable |
| 10 | Containers, Packaging & Glass |
| 11 | Energy: Electricity |
| 12 | Energy: Oil & Gas |
| 13 | Environmental Industries |
| 14 | Forest Products & Paper |
| 15 | Healthcare & Pharmaceuticals |
| 16 | High Tech Industries |
| 17 | Hotel, Gaming & Leisure |
| 18 | Media: Advertising, Printing & Publishing |
| 19 | Media: Broadcasting & Subscription |
| 20 | Media: Diversified & Production |
| 21 | Metals & Mining |
| 22 | Retail |
| 23 | Services: Business |
| 24 | Services: Consumer |
| 25 | Sovereign & Public Finance |
| 26 | Telecommunications |
| 27 | Transportation: Cargo |
| 28 | Transportation: Consumer |
| 29 | Utilities: Electric |
| 30 | Utilities: Oil & Gas |
| 31 | Utilities: Water |
| 32 | Wholesale |

---

67958248. v2

------

SCHEDULE 7

**Ineligible Persons**

None

67958248. v2

------

SCHEDULE 8

<u>Partial PIK Portfolio Investment – Notice Form</u>

---

| | | |
|:---|:---|:---|
| **Portfolio Investment** | **Paid PIK in Quarter ended _____? (Y/N)** | **Coupon paid (Cash / PIK)** |

---

67958248. v2

------

EXHIBIT A

**Form of Request for Advance**

JPMorgan Chase Bank, National Association,<br>as Administrative Agent<br>c/o JPMorgan Services Inc.<br>500 Stanton Christiana Rd., 3rd Floor<br>Attention: Nicholas Rapak<br>

JPMorgan Chase Bank, National Association,<br>as Administrative Agent<br>383 Madison Avenue<br>New York, New York 10179<br>Attention: James Greenfield<br>Email:&nbsp;&nbsp;&nbsp;&nbsp;james.r.greenfield@jpmorgan.com

de_custom_business@jpmorgan.com<br><u>brian.m.larocca@jpmorgan.com</u>

JPMorgan Chase Bank, National Association,<br>as Lender<br>c/o JPMorgan Services Inc.<br>500 Stanton Christiana Rd., 3rd Floor<br>Newark, Delaware 19713<br>Attention: Nicholas Rapak

cc:

U.S. Bank Trust Company, National Association, as Collateral Agent and Collateral Administrator

One Federal Street, 3rd Floor

Boston, Massachusetts 02110<br>Attention: Global Corporate Trust – FBCC Jupiter Funding, LLC

Ladies and Gentlemen:

Reference is hereby made to the Loan and Security Agreement, dated as of October 4, 2023 (as amended, the "<u>Agreement</u>"), among FBCC Jupiter Funding, LLC, as borrower (the "<u>Company</u>"), JPMorgan Chase Bank, National Association, as administrative agent (the "<u>Administrative Agent</u>"), Franklin BSP Capital Corporation, as portfolio manager (the "<u>Portfolio Manager</u>"), the lenders party thereto, and the collateral agent, collateral administrator and securities intermediary party thereto. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given such terms in the Agreement.

Pursuant to the Agreement, you are hereby notified of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Company hereby requests an Advance under Section 2.03 of the Agreement to be funded on [____________].

67958248. v2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The aggregate amount of the Advance requested hereby is U.S.$[_________].<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The currency of the proposed Advance is [USD] [AUD] [CAD] [EUR] [GBP].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)The proposed purchases (if any) relating to this request are as follows:

---

| | | | |
|:---|:---|:---|:---|
| <u>Security</u> | <u>Par</u> | <u>Price</u> | <u>Purchased Interest</u> (if any) |

---

We hereby certify that all conditions [to the Purchase of such Portfolio Investment(s) set forth in Section 1.03 of the Agreement and] to an Advance set forth in Section 2.05 of the Agreement have been satisfied or waived as of the [related Trade Date (and shall be satisfied or waived as of the related Settlement Date) and] Advance date[, as applicable].

Very truly yours,

FBCC JUPITER FUNDING, LLC

By__________________________________<br>Name:<br>Title:

<sup>2</sup> Note: The requested Advance shall be in an amount such that, after giving effect thereto and the related purchase of the applicable Portfolio Investment(s) (if any), the Borrowing Base Test is satisfied.

67958248. v2

## Exhibit 31.1

**Exhibit 31.1**

I, Richard J. Byrne, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 of Franklin BSP Capital Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

------

---

| | | | |
|:---|:---|:---|:---|
| Date: | November 12, 2025 | By: | /s/ Richard J. Byrne |
|  |  |  | Richard J. Byrne |
|  |  |  | Chief Executive Officer and<br>Chairman of the Board of Directors<br>(Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

I, Nina Kang Baryski, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 of Franklin BSP Capital Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

------

---

| | | | |
|:---|:---|:---|:---|
| Date: | November 12, 2025 | By: | /s/ Nina Kang Baryski |
|  |  |  | Nina Kang Baryski<br>Chief Financial Officer and Treasurer <br>(Principal Financial and Accounting Officer) |

---

## Ex-32

**Exhibit 32**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

This Certificate is being delivered pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 in connection with the Franklin BSP Capital Corporation's (the "Company's") Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report").

The undersigned, who are the Principal Executive Officer and Principal Financial Officer of the Company, each hereby certify to the best of such officer's knowledge as follows:

(i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 12<sup>th</sup> day of November 2025

---

| |
|:---|
| /s/ Richard J. Byrne |
| Richard J. Byrne<br>Chief Executive Officer and Chairman of the Board of Directors<br>(Principal Executive Officer) |
| /s/ Nina Kang Baryski |
| Nina Kang Baryski<br>Chief Financial Officer and Treasurer<br>(Principal Financial and Accounting Officer) |

---

\* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

<br>