QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __ to __
Commission file number: 814-01360
FRANKLIN BSP CAPITAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Delaware
85-2950084
(State or Other Jurisdiction of Incorporation or Organization)
(I.R.S. Employer Identification No.)
One Madison Avenue, New York, New York
10010
(Address of Principal Executive Offices)
(Zip Code)
(212) 588-6770
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
None
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. Yesx 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). Yesx 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
x
Smaller reporting company
¨
Emerging growth company
x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No x
The number of shares of the registrant’s Common Stock, $0.001 par value, outstanding as of August 6, 2026 was 133,826,844.
(dollars in thousands, except share and per share data)
June 30,
December 31,
2026
2025
(Unaudited)
Assets:
Investments, at fair value:
Control Investments, at fair value (amortized cost of $705,694 and $720,008, respectively)
$
718,087
$
686,505
Affiliate Investments, at fair value (amortized cost of $39,385 and $58,945, respectively)
30,464
49,827
Non-Affiliated Investments, at fair value (amortized cost of $3,432,647 and $3,399,401, respectively)
3,330,833
3,334,676
Investments, at fair value (amortized cost of $4,177,726 and $4,178,354, respectively)
4,079,384
4,071,008
Cash and cash equivalents
35,384
100,581
Restricted cash
9,695
20,102
Interest and dividends receivable
41,252
49,421
Receivable for unsettled trades
575
2,397
Prepaid expenses and other assets
4,094
4,378
Total assets
$
4,170,384
$
4,247,887
Liabilities:
Debt (net of deferred financing costs of $16,280 and $14,922, respectively)
$
2,199,450
$
2,245,118
Management fees payable
14,875
15,438
Incentive fees on income payable
6,906
8,355
Accounts payable and accrued expenses
30,390
31,575
Stockholder distributions payable
33,262
—
Interest and debt fees payable
10,891
28,253
Directors' fees payable
16
16
Other liabilities
6,145
1,292
Unrealized loss on derivatives
45
336
Total liabilities
2,301,980
2,330,383
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 June 30, 2026 and December 31, 2025
77,443
77,434
Net assets attributable to common stock:
Common stock, $0.001 par value, 450,000,000 shares authorized; 133,482,448 issued and outstanding at June 30, 2026, and 135,487,319 issued and outstanding at December 31, 2025
133
135
Additional paid in capital
2,503,890
2,530,983
Total distributable earnings (loss)
(713,062)
(691,048)
Total net assets attributable to common stock
1,790,961
1,840,070
Total liabilities, redeemable convertible preferred stock, and net assets attributable to common stock
$
4,170,384
$
4,247,887
Net asset value per share attributable to common stock
$
13.42
$
13.58
The accompanying notes are an integral part of these consolidated financial statements.
1
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
(Unaudited)
For the three months ended June 30,
For the six months ended June 30,
2026
2025
2026
2025
Investment income:
From Control Investments:
Interest income
$
6,855
$
5,548
$
13,074
$
11,578
Dividend income
10,731
12,320
21,406
28,697
Payment-in-kind income
462
—
1,059
—
Total investment income from Control Investments
18,048
17,868
35,539
40,275
From Affiliate Investments:
Interest income
482
603
956
1,074
Payment-in-kind income
151
302
303
566
Fee and other income
—
9
—
9
Total investment income from Affiliate Investments
633
914
1,259
1,649
From Non-Affiliated Investments:
Interest income
74,359
76,169
149,957
155,095
Dividend income
328
339
658
642
Payment-in-kind income
2,337
6,173
5,521
9,698
Fee and other income
224
931
627
1,544
Total investment income from Non-Affiliated Investments
77,248
83,612
156,763
166,979
Interest from cash and cash equivalents
483
1,021
1,066
2,029
Total investment income
96,412
103,415
194,627
210,932
Operating expenses:
Management fees
14,941
15,231
29,873
30,216
Incentive fee on income
6,756
7,934
14,193
16,930
Interest and debt fees
36,398
34,889
70,964
68,741
Professional fees
2,071
1,784
3,946
3,918
Other general and administrative
2,028
2,448
4,266
4,241
Administrative services
207
211
423
431
Directors' fees
243
243
501
501
Total expenses
62,644
62,740
124,166
124,978
Net investment income (loss) before income taxes
33,768
40,675
70,461
85,954
Income tax expense, including excise tax
535
1,095
679
1,450
Net investment income (loss)
33,233
39,580
69,782
84,504
Realized and unrealized gain (loss):
Net realized gain (loss)
Control Investments
(9)
—
(33,029)
(164)
Affiliate Investments
526
—
79
137
Non-Affiliated Investments
(1,735)
(11,509)
(1,066)
(8,019)
Net realized gain (loss) on derivatives
(21)
17
(40)
6
Total net realized gain (loss)
(1,239)
(11,492)
(34,056)
(8,040)
The accompanying notes are an integral part of these consolidated financial statements.
2
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
(Unaudited)
For the three months ended June 30,
For the six months ended June 30,
2026
2025
2026
2025
Net change in unrealized appreciation (depreciation) on investments
Control Investments
$
7,933
$
(5,751)
$
45,896
$
(11,392)
Affiliate Investments
(865)
(938)
(1,299)
(2,511)
Non-Affiliated Investments
(9,701)
6,554
(35,592)
(7,464)
Net change in deferred taxes
(2,981)
(1,684)
(23)
(3,731)
Net change in unrealized appreciation (depreciation) on derivatives
148
(111)
291
(349)
Total net change in unrealized appreciation (depreciation) on investments
(5,466)
(1,930)
9,273
(25,447)
Net realized and unrealized gain (loss)
(6,705)
(13,422)
(24,783)
(33,487)
Net increase (decrease) in net assets resulting from operations attributable to common stockholders and participating securities
$
26,528
$
26,158
$
44,999
$
51,017
Accretion to redemption value of Series A redeemable convertible preferred stock
(4)
(4)
(9)
(9)
Accrual of Series A redeemable convertible preferred stock distributions
(1,226)
(1,687)
(2,452)
(3,373)
Net increase (decrease) in net assets resulting from operations attributable to common stockholders
$
25,298
$
24,467
$
42,538
$
47,635
Per share information
Net investment income (loss)
$
0.25
$
0.29
$
0.52
$
0.62
Net increase (decrease) in net assets resulting from operations attributable to common stockholders and participating securities
$
0.20
$
0.19
$
0.33
$
0.38
Basic and diluted earnings (loss) per share
$
0.19
$
0.18
$
0.32
$
0.35
Weighted average common shares outstanding
134,526,401
135,118,703
135,004,283
135,356,935
The accompanying notes are an integral part of these consolidated financial statements.
3
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 June 30,
For the six months ended June 30,
2026
2025
2026
2025
Operations:
Net investment income (loss)
$
33,233
$
39,580
$
69,782
$
84,504
Net realized gain (loss) from investments
(1,218)
(11,509)
(34,016)
(8,046)
Net realized gain (loss) on derivatives
(21)
17
(40)
6
Net change in unrealized appreciation (depreciation) on investments
(2,633)
(135)
9,005
(21,367)
Net change in unrealized appreciation (depreciation) on derivatives
148
(111)
291
(349)
Net change in deferred taxes
(2,981)
(1,684)
(23)
(3,731)
Accretion to redemption value of Series A redeemable convertible preferred stock
(4)
(4)
(9)
(9)
Accrual of Series A redeemable convertible preferred stock distributions
(1,226)
(1,687)
(2,452)
(3,373)
Net increase (decrease) in net assets resulting from operations attributable to common stockholders
25,298
24,467
42,538
47,635
Stockholder distributions:
Common stockholder distributions
(32,035)
(44,942)
(64,553)
(89,645)
Net decrease in net assets attributable to common stock from stockholder distributions
(32,035)
(44,942)
(64,553)
(89,645)
Capital share transactions:
Reinvestment of common stockholder distributions
(2)
9,292
6,856
19,283
Repurchases of common stock
(33,950)
(34,903)
(33,950)
(34,903)
Net increase (decrease) in net assets attributable to common stock from capital share transactions
$
(33,952)
$
(25,611)
$
(27,094)
$
(15,620)
Total increase (decrease) in net assets attributable to common stock
(40,689)
(46,086)
(49,109)
(57,630)
Net assets at beginning of period attributable to common stock
1,831,650
1,898,833
1,840,070
1,910,377
Net assets at end of period attributable to common stock
$
1,790,961
$
1,852,747
$
1,790,961
$
1,852,747
Net asset value per share attributable to common stock
$
13.42
$
13.79
$
13.42
$
13.79
Common shares outstanding at end of period
133,482,448
134,387,297
133,482,448
134,387,297
The accompanying notes are an integral part of these consolidated financial statements.
4
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands, except share and per share data)
(Unaudited)
For the six months ended June 30,
2026
2025
Operating activities
Net increase (decrease) in net assets resulting from operations attributable to common stockholders and participating securities
$
44,999
$
51,017
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Payment-in-kind interest income
(6,883)
(10,264)
Net accretion of discount on investments
(4,438)
(5,860)
Amortization of deferred financing costs
2,037
1,251
Accretion of discount on unsecured notes
662
318
Amortization of premium on unsecured notes
(140)
(140)
Sales and repayments of investments
341,995
520,726
Purchases of investments
(364,103)
(653,093)
Net realized (gain) loss from investments
34,016
8,046
Net realized (gain) loss on derivatives
40
(6)
Net change in carrying value of unsecured notes attributed to hedging
(5,092)
—
Net change in unrealized (appreciation) depreciation on investments
(9,005)
21,367
Net change in unrealized (appreciation) depreciation on derivatives
(291)
349
(Increase) decrease in operating assets:
Interest and dividend receivable
8,167
5,590
Receivable for unsettled trades
1,822
(26,163)
Prepaid expenses and other assets
285
374
Due from broker
—
7,690
Increase (decrease) in operating liabilities:
Management fees payable
(563)
91
Incentive fees on income payable
(1,449)
(197)
Accounts payable and accrued expenses
(1,184)
2,201
Payable for unsettled trades
—
(23,995)
Interest and debt fees payable
(17,362)
4,980
Other liabilities
4,855
(658)
Net cash provided by (used in) operating activities
$
28,368
$
(96,376)
Financing activities
Repayments of secured borrowings
$
—
$
(29,052)
Repurchase of common stock
(33,950)
(34,903)
Proceeds from debt
553,111
559,301
Payments on debt
(592,851)
(329,300)
Payments of financing costs
(3,395)
(5,278)
Common stockholder distributions
(25,661)
(70,362)
Preferred stockholder distributions
(1,226)
(3,373)
Net cash provided by (used in) financing activities
$
(103,972)
$
87,033
Net increase (decrease) in cash, cash equivalents and restricted cash
$
(75,604)
$
(9,343)
Cash, cash equivalents and restricted cash, beginning of period
120,683
130,760
Cash, cash equivalents and restricted cash, end of period
$
45,079
$
121,417
The accompanying notes are an integral part of these consolidated financial statements.
5
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands, except share and per share data)
(Unaudited)
For the six months ended June 30,
Supplemental and non-cash activities:
2026
2025
Non-cash repayments of secured borrowings
$
—
$
1,706
Interest and non-usage fees paid during the period
$
85,333
$
61,699
Net taxes paid, including excise tax, during the period
$
2,369
$
1,309
Distributions reinvested during the period
$
6,856
$
19,283
As of June 30,
2026
2025
Cash and cash equivalents
$
35,384
$
105,259
Restricted cash
9,695
16,158
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows
$
45,079
$
121,417
The accompanying notes are an integral part of these consolidated financial statements.
6
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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 - 173.8% (d)
1236904 BC, Ltd. (e) (n)
Software
S+ 7.50% (11.29%), 3/4/2027
$
587
$
588
$
581
0.0
%
1236904 BC, Ltd. (e) (n) (p)
Software
S+ 5.50% (9.26%), 3/4/2027
4,480
4,450
4,436
0.2
%
Accel International Holdings, LLC (e) (h)
Electrical Equipment
S+ 4.25%, 4/26/2032
952
933
952
0.1
%
Accel International Holdings, LLC (e) (n) (p)
Electrical Equipment
S+ 4.25% (7.89%), 4/26/2032
27,685
27,566
27,685
1.5
%
ACE Solutions, LLC (e) (h)
Oil, Gas & Consumable Fuels
S+ 5.25%, 3/24/2032
—
(22)
(45)
0.0
%
ACE Solutions, LLC (e)
Oil, Gas & Consumable Fuels
S+ 5.25%, 3/24/2032
7,520
7,410
7,412
0.4
%
ACE Solutions, LLC (e) (n)
Oil, Gas & Consumable Fuels
S+ 5.25% (8.98%), 3/24/2032
10,524
10,370
10,373
0.6
%
ADCS Clinics Intermediate Holdings, LLC (e)
Health Care Providers & Services
S+ 6.50% (10.27%), 5/7/2027
123
123
113
0.0
%
ADCS Clinics Intermediate Holdings, LLC (e) (h)
Health Care Providers & Services
S+ 6.50% (10.31%), 7/10/2026
1,181
1,181
1,037
0.1
%
ADCS Clinics Intermediate Holdings, LLC (e) (n)
Health Care Providers & Services
S+ 6.50% (10.45%), 5/7/2027
3,834
3,821
3,527
0.2
%
ADCS Clinics Intermediate Holdings, LLC (e) (n)
Health Care Providers & Services
S+ 6.50% (10.27%), 5/7/2027
18,701
18,644
17,205
1.0
%
Adelaide Borrower, LLC (e) (h)
Software
S+ 6.00%, 5/8/2030
—
(54)
—
—
%
Adelaide Borrower, LLC (e) (h)
Software
S+ 6.00% (9.74%), 5/8/2030
399
335
399
0.0
%
Adelaide Borrower, LLC (e) (n) (p)
Software
S+ 6.00% (9.73%), 5/8/2030
35,895
35,388
35,895
2.0
%
Advanced Integration Technology, LP (e) (n)
Aerospace & Defense
S+ 5.75% (9.37%), 6/1/2033
12,265
12,146
12,144
0.7
%
American Rock Salt Company, LLC (n)
Chemicals
S+ 4.00% (7.99%), 6/9/2028
1,967
1,966
1,791
0.1
%
Amylu Borrower Sub, LLC (e) (h)
Food Products
S+ 4.75% (8.37%), 6/10/2031
1,135
1,102
1,135
0.1
%
Amylu Borrower Sub, LLC (e) (h)
Food Products
S+ 4.75%, 6/10/2031
—
(65)
—
—
%
Amylu Borrower Sub, LLC (e) (n)
Food Products
S+ 4.75% (8.41%), 6/10/2031
39,237
38,902
39,237
2.1
%
Aprio Advisory Group, LLC (e) (h)
Financial Services
S+ 4.75% (8.48%), 8/1/2031
757
703
655
0.0
%
Aprio Advisory Group, LLC (e) (h)
Financial Services
S+ 4.75%, 8/1/2031
—
(8)
(8)
0.0
%
Arch Global Precision, LLC (e)
Machinery
S+ 4.75% (8.58%), 4/30/2028
2,283
2,283
2,194
0.1
%
Arch Global Precision, LLC (e) (h)
Machinery
S+ 4.75% (8.58%), 4/30/2028
894
894
887
0.0
%
Arch Global Precision, LLC (e) (n) (p)
Machinery
S+ 4.75% (8.58%), 4/30/2028
7,244
7,245
6,962
0.4
%
Arctic Holdco, LLC (e)
Trading Companies & Distributors
S+ 5.25% (8.90%), 1/31/2032
5,224
5,180
5,224
0.3
%
Arctic Holdco, LLC (e) (h)
Trading Companies & Distributors
S+ 5.25% (8.98%), 1/31/2031
984
957
984
0.1
%
Arctic Holdco, LLC (e) (n) (p)
Trading Companies & Distributors
S+ 5.25% (8.98%), 1/31/2032
45,690
45,326
45,690
2.6
%
The accompanying notes are an integral part of these consolidated financial statements.
7
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Armada Parent, Inc. (e)
Aerospace & Defense
S+ 4.75% (8.41%), 10/29/2030
$
3,822
$
3,788
$
3,822
0.2
%
Armada Parent, Inc. (e) (h)
Aerospace & Defense
S+ 4.75%, 10/29/2030
—
(27)
—
—
%
Armada Parent, Inc. (e) (n)
Aerospace & Defense
S+ 4.75% (8.41%), 10/29/2030
55,213
54,989
55,213
3.1
%
Artifact Bidco, Inc. (e) (h)
Software
S+ 4.15%, 7/28/2031
—
(10)
—
—
%
Artifact Bidco, Inc. (e) (h)
Software
S+ 4.15%, 7/26/2030
—
(13)
—
—
%
Artifact Bidco, Inc. (e) (n) (p)
Software
S+ 4.15% (7.88%), 7/28/2031
10,875
10,794
10,875
0.6
%
AuditBoard, Inc. (e)
Software
S+ 4.50% (8.23%), 7/14/2031
10,898
10,813
10,735
0.6
%
AuditBoard, Inc. (e) (h)
Software
S+ 4.50%, 7/14/2031
—
(31)
(65)
0.0
%
AuditBoard, Inc. (e) (n)
Software
S+ 4.50% (8.23%), 7/14/2031
22,887
22,711
22,544
1.3
%
AuditBoard, Inc. (e) (n)
Software
S+ 4.50% (8.20%), 7/14/2031
5,742
5,720
5,655
0.3
%
Aventine Holdings, LLC (e)
Entertainment
S+ 6.00% (9.83%) 3.50% PIK, 6/18/2029
10,115
10,072
9,982
0.6
%
Aventine Holdings, LLC (e) (p)
Entertainment
S+ 6.00% (9.83%) 3.50% PIK, 6/18/2029
24,855
24,736
24,529
1.4
%
Axiom Global, Inc. (e) (n) (p)
Professional Services
S+ 4.75% (8.51%), 10/2/2028
46,421
46,290
46,421
2.6
%
Azurite Intermediate Holdings, Inc. (e)
Software
S+ 6.00% (9.64%), 3/19/2031
22,583
22,324
22,018
1.2
%
Azurite Intermediate Holdings, Inc. (e)
Software
S+ 6.00% (9.64%), 3/19/2031
9,936
9,822
9,688
0.5
%
Azurite Intermediate Holdings, Inc. (e) (h)
Software
S+ 6.00%, 3/19/2031
—
(37)
(91)
0.0
%
Bayou Holdings Buyer, Inc. (e) (h)
Professional Services
S+ 4.75%, 9/18/2031
—
(9)
—
—
%
Bayou Holdings Buyer, Inc. (e) (h)
Professional Services
S+ 4.75%, 9/18/2031
—
(29)
—
—
%
Bayou Holdings Buyer, Inc. (e) (n)
Professional Services
S+ 4.75% (8.48%), 9/18/2031
21,196
21,105
21,196
1.2
%
BCPE Oceandrive Buyer, Inc. (e) (l)
Health Care Providers & Services
S+ 6.25% (9.98%) PIK, 4/30/2035
3,433
3,194
3,433
0.2
%
BCPE Oceandrive Buyer, Inc. (e) (l)
Health Care Providers & Services
S+ 6.25% (10.08%) PIK, 4/30/2035
5,330
5,330
5,330
0.3
%
BCPE Oceandrive Buyer, Inc. (e) (l)
Health Care Providers & Services
S+ 6.25% (10.08%) PIK, 4/30/2035
8,884
8,884
8,884
0.5
%
BCPE Oceandrive Buyer, Inc. (e) (l)
Health Care Providers & Services
S+ 6.25% (10.10%) PIK, 4/30/2035
4,346
4,131
4,346
0.2
%
Big Apple Advisory, LLC (e) (h)
Financial Services
S+ 4.50% (8.23%), 11/18/2031
6,092
5,979
6,092
0.3
%
Big Apple Advisory, LLC (e) (h)
Financial Services
S+ 4.50%, 11/18/2031
—
(49)
—
—
%
Big Apple Advisory, LLC (e) (n) (p)
Financial Services
S+ 4.50% (8.16%), 11/18/2031
46,929
46,582
46,929
2.6
%
Bingo Group Buyer, Inc. (e)
Commercial Services & Supplies
S+ 4.75% (8.48%), 7/10/2031
1,543
1,529
1,543
0.1
%
Bingo Group Buyer, Inc. (e)
Commercial Services & Supplies
S+ 4.75% (8.48%), 7/10/2031
1,682
1,665
1,682
0.1
%
Bingo Group Buyer, Inc. (e) (h)
Commercial Services & Supplies
S+ 4.75%, 7/10/2031
644
626
644
0.0
%
The accompanying notes are an integral part of these consolidated financial statements.
8
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Bingo Group Buyer, Inc. (e) (h)
Commercial Services & Supplies
S+ 4.75% (8.48%), 7/10/2031
$
20
$
14
$
20
0.0
%
Bingo Group Buyer, Inc. (e) (n) (p)
Commercial Services & Supplies
S+ 4.75% (8.48%), 7/10/2031
5,382
5,329
5,382
0.3
%
Capstone Acquisition Holdings, Inc. (e)
Air Freight & Logistics
S+ 4.50% (8.24%),
11/13/2029
207
205
207
0.0
%
Capstone Acquisition Holdings, Inc. (e) (n)
Air Freight & Logistics
S+ 4.50% (8.24%), 11/13/2029
20,446
20,449
20,446
1.1
%
Capstone Acquisition Holdings, Inc. (e) (h)
Air Freight & Logistics
S+ 4.50%, 5/14/2029
—
—
—
—
%
Carr, Riggs & Ingram Capital, LLC (e) (h)
Financial Services
S+ 4.50% (8.23%), 11/18/2031
2,090
2,059
2,090
0.1
%
Carr, Riggs & Ingram Capital, LLC (e) (h)
Financial Services
S+ 4.50% (8.23%), 11/18/2031
441
420
441
0.0
%
Carr, Riggs & Ingram Capital, LLC (e) (n) (p)
Financial Services
S+ 4.50% (8.20%), 11/18/2031
11,562
11,473
11,562
0.6
%
CCI Buyer, Inc. (e) (h)
Wireless Telecommunication Services
S+ 5.00%, 5/13/2032
—
(26)
—
—
%
CCI Buyer, Inc. (e) (n) (p)
Wireless Telecommunication Services
S+ 5.00% (8.73%), 5/13/2032
51,867
51,411
51,867
2.9
%
Center Phase Energy, LLC (e) (n)
Electric Utilities
S+ 6.00% (10.10%), 6/23/2027
10,305
10,277
10,305
0.6
%
Center Phase Energy, LLC (e) (n)
Electric Utilities
S+ 6.00% (10.10%), 6/23/2027
15,109
14,937
15,109
0.8
%
Charter Industries Holdings, LLC (e) (h)
Distributors
S+ 4.75%, 10/1/2032
—
(16)
—
—
%
Charter Industries Holdings, LLC (e) (h)
Distributors
S+ 4.75%, 10/1/2032
—
(47)
—
—
%
Charter Industries Holdings, LLC (e) (n)
Distributors
S+ 4.75% (8.37%), 10/1/2032
29,255
29,027
29,255
1.6
%
Cliffwater, LLC (e) (h)
Capital Markets
S+ 4.50%, 4/22/2032
—
(24)
—
—
%
Cliffwater, LLC (e) (n) (p)
Capital Markets
S+ 4.50% (8.14%), 4/22/2032
30,002
29,742
30,002
1.7
%
Coalesce Merlin Purchaser, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75% (8.38%), 9/10/2031
5,763
5,696
5,699
0.3
%
Coalesce Merlin Purchaser, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75% (8.39%), 9/10/2031
332
305
300
0.0
%
Coalesce Merlin Purchaser, LLC (e) (n) (p)
Commercial Services & Supplies
S+ 4.75% (8.39%), 9/10/2031
17,327
17,224
17,213
1.0
%
Cold Spring Brewing, Co. (e) (n) (p)
Beverages
S+ 4.75% (8.39%), 12/10/2030
20,180
20,033
20,180
1.1
%
Communication Technology Intermediate, LLC (e) (h)
Professional Services
S+ 5.50% (9.14%), 5/5/2027
739
737
739
0.0
%
Communication Technology Intermediate, LLC (e) (n)
Professional Services
S+ 5.50% (9.14%), 5/5/2027
24,543
24,506
24,543
1.4
%
Communication Technology Intermediate, LLC (e) (n)
Professional Services
S+ 5.50% (9.14%), 5/5/2027
24,234
24,152
24,234
1.4
%
Communication Technology Intermediate, LLC (e) (n)
Professional Services
S+ 5.50% (9.14%), 5/5/2027
2,408
2,396
2,408
0.1
%
Communication Technology Intermediate, LLC (e) (n) (p)
Professional Services
S+ 5.50% (9.14%), 5/5/2027
8,537
8,529
8,537
0.5
%
Consolidated Precision Products Corp. (e) (q)
Aerospace & Defense
10.14%, 1/1/2030
19,683
19,683
19,728
1.1
%
Corfin Industries, LLC (e)
Aerospace & Defense
S+ 5.25% (8.97%), 12/27/2027
1,545
1,546
1,545
0.1
%
The accompanying notes are an integral part of these consolidated financial statements.
9
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Corfin Industries, LLC (e)
Aerospace & Defense
S+ 5.25% (8.97%), 12/27/2027
$
9,411
$
9,413
$
9,411
0.5
%
Corfin Industries, LLC (e) (n) (p)
Aerospace & Defense
S+ 5.25% (8.97%), 12/27/2027
15,807
15,808
15,807
0.9
%
Corfin Industries, LLC (e) (n) (p)
Aerospace & Defense
S+ 5.25% (8.97%), 12/27/2027
19,533
19,400
19,533
1.1
%
Coronis Health I, LLC (e) (h) (m)
Health Care Technology
S+ 4.50% (8.16%), 5/1/2030
798
798
798
0.0
%
Coronis Health I, LLC (e) (m)
Health Care Technology
S+ 7.00% (10.66%) PIK, 5/1/2031
4,458
4,458
4,458
0.2
%
DayMark Wealth Partners, LLC (e) (h)
Financial Services
S+ 4.25%, 6/1/2032
—
(20)
(40)
0.0
%
DayMark Wealth Partners, LLC (e) (h)
Financial Services
S+ 4.25%, 6/1/2031
—
(5)
(5)
0.0
%
DayMark Wealth Partners, LLC (e)
Financial Services
S+ 4.25% (7.91%), 6/1/2032
3,000
2,970
2,970
0.2
%
Demakes Borrower, LLC (e) (n)
Consumer Staples Distribution & Retail
S+ 6.00% (9.70%), 12/31/2031
17,466
17,198
17,466
1.0
%
Einstein Parent, Inc. (e) (h)
Software
S+ 5.25%, 1/22/2031
—
(35)
(69)
0.0
%
Einstein Parent, Inc. (e) (n) (p)
Software
S+ 5.25% (8.91%), 1/22/2031
22,317
21,963
21,648
1.2
%
Electric Power Engineers, LLC (e) (h)
Construction & Engineering
S+ 4.50% (8.25%), 12/31/2031
6,379
6,298
6,379
0.4
%
Electric Power Engineers, LLC (e) (h)
Construction & Engineering
S+ 4.50% (8.23%), 12/31/2031
2,127
2,085
2,127
0.1
%
Electric Power Engineers, LLC (e) (n) (p)
Construction & Engineering
S+ 4.50% (8.25%), 12/31/2031
27,909
27,687
27,909
1.6
%
Electro-Methods, LP (e) (h)
Aerospace & Defense
S+ 4.50%, 2/23/2032
—
(100)
—
—
%
Electro-Methods, LP (e) (n) (p)
Aerospace & Defense
S+ 4.50% (8.14%), 2/23/2032
34,239
33,824
34,239
1.9
%
Eliassen Group, LLC (e) (n)
Professional Services
S+ 5.75% (9.48%), 4/14/2028
1,337
1,336
1,299
0.1
%
Eliassen Group, LLC (e) (n) (p)
Professional Services
S+ 5.75% (9.48%), 4/14/2028
16,715
16,662
16,247
0.9
%
FGT Purchaser, LLC (e) (h)
Specialty Retail
S+ 5.50%, 3.00% PIK, 9/13/2028
—
(5)
(296)
0.0
%
FGT Purchaser, LLC (e) (n)
Specialty Retail
S+ 5.50% (9.33%) 3.00% PIK, 9/13/2028
31,435
31,388
28,449
1.6
%
Florida Food Products, LLC (e) (n)
Food Products
S+ 5.00% (8.99%) 2.00% PIK, 10/15/2030
10,223
10,135
7,457
0.4
%
Flow Traders Holding, LLC (a) (e)
Capital Markets
S+ 5.00% (8.73%), 10/29/2031
16,548
16,324
16,328
0.9
%
Flow Traders Holding, LLC (a) (e) (h)
Capital Markets
S+ 5.00%, 10/29/2031
2,918
2,835
2,835
0.2
%
FloWorks International, LLC (e)
Trading Companies & Distributors
S+ 4.75% (8.41%), 11/26/2031
4,945
4,904
4,945
0.3
%
FloWorks International, LLC (e) (n) (p)
Trading Companies & Distributors
S+ 4.75% (8.41%), 11/26/2031
39,167
38,866
39,167
2.2
%
Foresight Energy Operating, LLC (e)
Oil, Gas & Consumable Fuels
S+ 8.00% (11.83%), 6/30/2027
1,031
1,031
1,031
0.1
%
Galway Borrower, LLC (e)
Insurance
S+ 4.50% (8.23%), 9/29/2028
1,122
1,119
1,122
0.1
%
Galway Borrower, LLC (e) (h)
Insurance
S+ 4.50% (8.24%), 9/29/2028
1,055
1,047
1,055
0.1
%
Galway Borrower, LLC (e) (h)
Insurance
S+ 4.50%, 9/29/2028
—
(7)
—
—
%
The accompanying notes are an integral part of these consolidated financial statements.
10
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Galway Borrower, LLC (e) (n)
Insurance
S+ 4.50% (8.23%), 9/29/2028
$
37,911
$
37,844
$
37,911
2.1
%
Groome Purchaser, LLC (e)
Commercial Services & Supplies
S+ 4.75%, 8/29/2031
3,509
3,477
3,479
0.2
%
Groome Purchaser, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75%, 8/29/2031
877
850
832
0.0
%
Groome Purchaser, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75%, 8/29/2031
—
(23)
(23)
0.0
%
Groome Purchaser, LLC (e) (n)
Commercial Services & Supplies
S+ 4.75% (8.42%), 8/29/2031
16,440
16,296
16,299
0.9
%
GRVTY, Inc. (e) (h)
Aerospace & Defense
S+ 4.75%, 5/28/2033
—
(12)
(23)
0.0
%
GRVTY, Inc. (e) (p)
Aerospace & Defense
S+ 4.75% (8.41%), 5/28/2033
3,323
3,290
3,290
0.2
%
GRVTY, Inc. (e) (h)
Aerospace & Defense
S+ 4.75%, 5/28/2033
—
(12)
(12)
0.0
%
Midwest Can Company, LLC (e) (h)
Containers & Packaging
S+ 6.00%, 7/31/2026
—
—
—
—
%
High Street Buyer, Inc. (e) (h)
Insurance
S+ 4.25% (7.98%), 4/14/2028
5,205
5,107
5,035
0.3
%
Hometown Food, Co. (e) (n) (p)
Food Products
S+ 4.50% (8.12%), 12/3/2030
14,921
14,790
14,921
0.8
%
Hospice Care Buyer, Inc. (e)
Health Care Providers & Services
S+ 6.50% (10.03%), 3/31/2028
4,592
4,569
4,592
0.3
%
Hospice Care Buyer, Inc. (e)
Health Care Providers & Services
S+ 6.50% (10.03%), 3/31/2028
2,122
2,110
2,122
0.1
%
Hospice Care Buyer, Inc. (e) (h)
Health Care Providers & Services
S+ 6.50% (9.96%), 3/31/2028
2,204
2,198
2,204
0.1
%
Hospice Care Buyer, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.03%), 3/31/2028
24,705
24,570
24,705
1.4
%
Hospice Care Buyer, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.13%), 3/31/2028
6,412
6,375
6,412
0.4
%
Hospice Care Buyer, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.03%), 3/31/2028
8,359
8,311
8,359
0.5
%
Hospice Care Buyer, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.03%), 3/31/2028
3,510
3,490
3,510
0.2
%
Hunter Communications & Technologies, LLC (e) (h)
Diversified Telecommunication Services
S+ 4.75% (8.39%), 3/31/2032
440
423
410
0.0
%
Hunter Communications & Technologies, LLC (e) (h)
Diversified Telecommunication Services
S+ 4.75%, 3/31/2032
—
(6)
(6)
0.0
%
Hunter Communications & Technologies, LLC (e) (n)
Diversified Telecommunication Services
S+ 4.75% (8.39%), 3/31/2032
5,812
5,756
5,756
0.3
%
ICAT Intermediate Holdings, LLC (e) (h)
Air Freight & Logistics
S+ 6.25% (9.89%), 3/1/2029
4,759
4,675
4,658
0.3
%
ICAT Intermediate Holdings, LLC (e) (h)
Air Freight & Logistics
S+ 6.25%, 3/1/2029
—
(15)
(15)
0.0
%
ICAT Intermediate Holdings, LLC (e) (h)
Air Freight & Logistics
S+ 6.25%, 3/1/2029
—
(35)
(57)
0.0
%
ICAT Intermediate Holdings, LLC (e) (n)
Air Freight & Logistics
S+ 6.25% (9.89%), 3/1/2029
17,220
17,017
17,018
1.0
%
Ideal Tridon Holdings, Inc. (e) (h)
Machinery
S+ 5.00%, 6/30/2032
—
(33)
(67)
0.0
%
The accompanying notes are an integral part of these consolidated financial statements.
11
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Ideal Tridon Holdings, Inc. (e) (h)
Machinery
S+ 5.00% (8.64%), 6/30/2032
$
2,507
$
2,452
$
2,452
0.1
%
Ideal Tridon Holdings, Inc. (e) (n) (p)
Machinery
S+ 5.00% (8.64%), 6/30/2032
42,057
41,682
41,695
2.3
%
IG Investments Holdings, LLC (e) (h)
Professional Services
S+ 5.00%, 9/22/2028
—
(15)
—
—
%
IG Investments Holdings, LLC (e) (n)
Professional Services
S+ 5.00% (8.66%), 9/22/2028
25,869
25,869
25,869
1.4
%
Indigo Buyer, Inc. (e) (h)
Containers & Packaging
S+ 5.25% (8.90%), 5/23/2028
9,764
9,666
9,764
0.5
%
Indigo Buyer, Inc. (e) (h)
Containers & Packaging
S+ 5.25%, 5/23/2028
—
(18)
—
—
%
Indigo Buyer, Inc. (e) (n)
Containers & Packaging
S+ 5.25% (8.91%), 5/23/2028
60,572
60,572
60,572
3.4
%
InhabitIQ, Inc. (e) (h)
Software
S+ 4.50%, 1/12/2032
—
(14)
(109)
0.0
%
InhabitIQ, Inc. (e) (h)
Software
S+ 4.50%, 1/12/2032
—
(18)
(68)
0.0
%
InhabitIQ, Inc. (e) (n) (p)
Software
S+ 4.50% (8.14%), 1/12/2032
25,878
25,781
25,490
1.4
%
Integrated Global Services, Inc. (e) (h)
Construction & Engineering
S+ 5.00%, 3/6/2032
—
(34)
—
—
%
Integrated Global Services, Inc. (e) (h)
Construction & Engineering
P+ 4.00% (10.75%), 3/6/2031
5,060
4,988
5,060
0.3
%
Integrated Global Services, Inc. (e) (n) (p)
Construction & Engineering
S+ 5.00% (8.65%),
3/6/2032
32,417
32,000
32,417
1.8
%
International Cruise & Excursion Gallery, Inc. (e) (p)
Hotels, Restaurants & Leisure
S+ 6.00% (9.73%), 12/29/2028
1,358
1,358
1,358
0.1
%
IQN Holding Corp. (e)
Software
S+ 5.25% (8.98%), 5/2/2029
5,866
5,866
5,778
0.3
%
IQN Holding Corp. (e) (h)
Software
S+ 5.25% (8.98%), 5/2/2028
912
910
889
0.0
%
IQN Holding Corp. (e) (n) (p)
Software
S+ 5.25% (8.98%), 5/2/2029
17,467
17,402
17,205
1.0
%
Knowledge Pro Buyer, Inc. (e) (h)
Professional Services
S+ 4.50% (8.35%), 12/10/2029
2,663
2,641
2,663
0.1
%
Knowledge Pro Buyer, Inc. (e) (h)
Professional Services
S+ 4.50% (8.38%), 12/10/2029
23,080
22,963
23,080
1.2
%
Knowledge Pro Buyer, Inc. (e) (n) (p)
Professional Services
S+ 4.50% (8.38%), 12/10/2029
41,777
41,676
41,777
2.3
%
LaserShip, Inc. (j)
Air Freight & Logistics
S+ 7.50% (11.49%), 8/10/2029
2,964
2,875
270
0.0
%
Last Dance Intermediate II, LLC (e) (h)
Diversified Telecommunication Services
S+ 4.75%, 3/31/2031
2,944
2,893
2,944
0.2
%
Last Dance Intermediate II, LLC (e)
Diversified Telecommunication Services
S+ 5.25% (8.89%), 3/31/2031
15,349
15,184
15,349
0.9
%
Last Dance Intermediate II, LLC (e) (h)
Diversified Telecommunication Services
S+ 5.00%, 3/31/2031
—
(40)
—
—
%
Last Dance Intermediate II, LLC (e) (n) (p)
Diversified Telecommunication Services
S+ 5.25% (8.89%), 3/31/2031
19,054
18,890
19,054
1.1
%
Last Dance Intermediate II, LLC (e) (n) (p)
Diversified Telecommunication Services
S+ 5.25% (8.89%), 3/31/2031
19,312
19,068
19,312
1.1
%
Lighthouse Intelligence, Ltd. (a) (e)
Software
S+ 5.00% (8.67%) 2.50% PIK, 4/10/2030
22,738
22,476
22,085
1.2
%
Lighthouse Intelligence, Ltd. (a) (e) (h)
Software
S+ 5.00%, 2.50% PIK, 4/10/2030
—
(68)
(345)
0.0
%
Lighthouse Intelligence, Ltd. (a) (e) (h)
Software
S+ 5.00%, 2.50% PIK, 4/10/2030
—
(97)
(246)
0.0
%
The accompanying notes are an integral part of these consolidated financial statements.
12
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
LSF12 Donnelly Bidco, LLC (e) (n)
Machinery
S+ 6.50% (10.14%), 10/2/2029
$
18,643
$
18,371
$
18,643
1.0
%
Mandrake Bidco, Inc. (e) (h)
Machinery
S+ 4.50%, 8/20/2030
—
(70)
—
—
%
Mandrake Bidco, Inc. (e) (n) (p)
Machinery
S+ 4.50% (8.16%), 8/20/2031
55,557
55,135
55,557
3.1
%
Manna Pro Products, LLC (e)
Food Products
S+ 6.50% (10.33%) 3.50% PIK, 12/10/2029
4,046
3,999
3,237
0.2
%
Manna Pro Products, LLC (e) (h)
Food Products
S+ 6.50% (10.31%) 3.50% PIK, 12/10/2029
406
362
(135)
0.0
%
Manna Pro Products, LLC (e) (p)
Food Products
S+ 6.50% (10.33%) 3.50% PIK, 12/10/2029
1,929
1,906
1,543
0.1
%
Manna Pro Products, LLC (e) (p)
Food Products
S+ 6.50% (10.33%) 3.50% PIK, 12/10/2029
6,938
6,851
5,550
0.3
%
Manna Pro Products, LLC (e) (p)
Food Products
S+ 6.50% (10.33%) 3.50% PIK, 12/10/2029
24,467
24,178
19,574
1.1
%
Maravai Intermediate Holdings, LLC (a) (e) (h)
Life Sciences Tools & Services
S+ 5.00%, 6/2/2032
—
(42)
(42)
0.0
%
Maravai Intermediate Holdings, LLC (a) (e) (p)
Life Sciences Tools & Services
S+ 5.00% (8.73%), 6/2/2032
14,288
14,077
14,077
0.8
%
McDonald Worley, P.C. (e) (h) (j)
Professional Services
30.00% PIK, 12/31/2025
39,422
14,088
4,845
0.3
%
Medical Management Resource Group, LLC (e) (h)
Health Care Providers & Services
S+ 5.75%, 9/30/2026
—
—
(26)
0.0
%
Medical Management Resource Group, LLC (e) (n)
Health Care Providers & Services
S+ 5.75% (9.58%), 9/30/2027
9,261
9,220
9,136
0.5
%
Medical Management Resource Group, LLC (e) (n)
Health Care Providers & Services
S+ 5.75% (9.58%), 9/30/2027
22,420
22,319
22,117
1.2
%
Megavolt Borrower, LLC (e) (n) (p)
Construction & Engineering
S+ 4.75% (8.45%), 2/13/2032
36,803
36,196
36,803
2.1
%
Michael Baker International, LLC (e)
Construction & Engineering
S+ 4.50% (8.23%), 12/1/2028
17,594
17,148
17,231
1.0
%
Midwest Can Company, LLC (e) (n) (p)
Containers & Packaging
S+ 6.00% (9.67%), 7/31/2026
26,494
26,494
26,494
1.5
%
Mirra-Primeaccess Holdings, LLC (e)
Health Care Providers & Services
S+ 6.50% (10.43%), 7/29/2026
67,732
67,724
60,959
3.4
%
Mirra-Primeaccess Holdings, LLC (e) (h)
Health Care Providers & Services
S+ 6.50% (10.43%), 7/29/2026
8,442
8,444
7,316
0.4
%
MRI Software, LLC (e)
Software
S+ 4.75% (8.48%), 2/10/2028
2,169
2,169
2,147
0.1
%
MRI Software, LLC (e)
Software
S+ 4.75% (8.48%), 2/10/2028
6,700
6,680
6,633
0.4
%
MRI Software, LLC (e) (h)
Software
S+ 4.75% (8.48%), 2/10/2028
237
236
233
0.0
%
MRI Software, LLC (e) (h)
Software
S+ 4.75% (8.48%), 2/10/2028
14
14
14
0.0
%
Muth Mirror Systems, LLC (e) (h) (j)
Automobile Components
11.00% 4.00% PIK, 3/31/2027
909
868
(11)
0.0
%
Muth Mirror Systems, LLC (e) (j)
Automobile Components
11.00% 4.00% PIK, 3/31/2027
15,583
14,266
4,549
0.3
%
MWH Intermediate II, LLC (e)
Capital Markets
S+ 5.00% (8.64%), 8/27/2032
9,005
8,944
8,945
0.5
%
MWH Intermediate II, LLC (e) (h)
Capital Markets
S+ 5.00% (8.64%), 8/29/2031
942
930
930
0.1
%
The accompanying notes are an integral part of these consolidated financial statements.
13
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
MWH Intermediate II, LLC (e) (n)
Capital Markets
S+ 5.00% (8.20%), 8/27/2032
$
15,316
$
15,214
$
15,215
0.8
%
Norvax, LLC (e)
Insurance
S+ 5.50% (9.17%), 8/5/2029
233
233
229
0.0
%
Norvax, LLC (e) (j)
Insurance
P+ 8.25% (15.00%) PIK, 8/6/2029
393
378
—
—
%
Odessa Technologies, Inc. (e) (h)
Software
S+ 5.50%, 10/19/2027
—
(7)
—
—
%
Odessa Technologies, Inc. (e) (n)
Software
S+ 5.50% (9.33%), 10/19/2027
20,130
20,104
20,130
1.1
%
OneSource Virtual, Inc. (e) (h)
Professional Services
S+ 4.75%, 1/30/2033
—
(13)
(13)
0.0
%
OneSource Virtual, Inc. (e)
Professional Services
S+ 4.75% (8.48%), 1/30/2033
18,561
18,476
18,473
1.0
%
ORG GC Holdings, LLC (e) (m)
Professional Services
S+ 6.50% (10.49%), 6/30/2027
10,111
10,120
10,112
0.6
%
Palmdale Oil Co., LLC (e)
Oil, Gas & Consumable Fuels
S+ 4.75% (8.48%), 12/12/2031
4,337
4,322
4,318
0.2
%
Palmdale Oil Co., LLC (e) (h)
Oil, Gas & Consumable Fuels
S+ 4.75%, 12/12/2031
—
—
(15)
0.0
%
PetVet Care Centers, LLC (e) (h)
Health Care Providers & Services
S+ 6.00% (9.64%), 11/15/2029
1,210
1,198
806
0.0
%
PetVet Care Centers, LLC (e) (n) (p)
Health Care Providers & Services
S+ 6.00% (9.67%), 11/15/2030
30,141
29,739
27,127
1.5
%
Pie Buyer, Inc. (e)
Consumer Staples Distribution & Retail
S+ 5.50% (9.49%), 3/31/2028
2,581
2,577
2,194
0.1
%
Pie Buyer, Inc. (e) (n)
Consumer Staples Distribution & Retail
S+ 5.50% (9.50%), 3/31/2028
8,653
8,642
7,355
0.4
%
Pie Buyer, Inc. (e) (n)
Consumer Staples Distribution & Retail
S+ 5.50% (9.50%), 3/31/2028
2,269
2,268
1,929
0.1
%
Pie Buyer, Inc. (e) (n) (p)
Consumer Staples Distribution & Retail
S+ 5.50% (9.50%), 3/31/2028
39,979
39,917
33,982
1.9
%
Pie Buyer, Inc. (e) (n) (p)
Consumer Staples Distribution & Retail
S+ 5.50% (9.38%), 3/31/2028
2,956
2,952
2,513
0.1
%
Pluralsight, LLC (e)
Software
S+ 4.50% (8.14%) 1.50% PIK, 8/22/2029
4,618
4,618
4,563
0.3
%
Pluralsight, LLC (e)
Software
S+ 4.50% (8.14%) 1.50% PIK, 8/22/2029
2,346
2,346
2,318
0.1
%
Pluralsight, LLC (e) (h)
Software
S+ 4.50%, 1.50% PIK, 8/22/2029
—
—
(35)
0.0
%
Pluralsight, LLC (e) (h)
Software
S+ 4.50%, 1.50% PIK, 8/22/2029
—
—
(14)
0.0
%
Pluralsight, LLC (e) (j)
Software
S+ 7.50% (11.14%) PIK, 8/22/2029
8,459
7,917
846
0.0
%
Pluto Acquisition I, Inc.
Health Care Providers & Services
S+ 5.50% (9.23%), 6/20/2028
3,304
3,304
3,345
0.2
%
Questex, Inc. (e) (h)
Media
S+ 5.50%, 5/15/2029
—
(22)
—
—
%
Questex, Inc. (e) (p)
Media
S+ 5.50% (9.14%), 5/15/2029
14,873
14,684
14,873
0.8
%
The accompanying notes are an integral part of these consolidated financial statements.
14
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Reagent Chemical and Research, LLC (e)
Chemicals
S+ 5.25% (8.89%), 4/30/2031
$
5,311
$
5,242
$
5,311
0.3
%
Reagent Chemical and Research, LLC (e) (h)
Chemicals
S+ 5.25%, 4/30/2030
—
(95)
—
—
%
Reagent Chemical and Research, LLC (e) (n) (p)
Chemicals
S+ 5.25% (8.89%), 4/30/2031
42,323
41,723
42,323
2.4
%
Rialto Management Group, LLC (e) (h)
Capital Markets
S+ 5.00%, 12/5/2030
—
(6)
—
—
%
Rialto Management Group, LLC (e) (n) (p)
Capital Markets
S+ 5.00% (8.64%), 12/5/2030
20,178
20,022
20,178
1.1
%
Roadsafe Holdings, Inc. (e) (n)
Construction & Engineering
S+ 5.25% (9.05%), 10/18/2030
5,345
5,348
5,345
0.3
%
Roadsafe Holdings, Inc. (e) (n)
Construction & Engineering
S+ 5.25% (9.05%), 10/18/2030
4,973
4,962
4,973
0.3
%
Roadsafe Holdings, Inc. (e) (n) (p)
Construction & Engineering
S+ 5.25% (9.05%), 10/18/2030
8,750
8,736
8,750
0.5
%
Roadsafe Holdings, Inc. (e) (n) (p)
Construction & Engineering
P+ 4.25% (11.00%), 10/18/2030
789
781
789
0.0
%
Saab Purchaser, Inc. (e) (h)
Software
S+ 4.50%, 11/12/2031
—
(76)
(166)
0.0
%
Saab Purchaser, Inc. (e) (h)
Software
S+ 4.50%, 11/12/2031
—
(20)
(22)
0.0
%
Saab Purchaser, Inc. (e) (n)
Software
S+ 4.50% (8.23%), 11/12/2031
17,877
17,719
17,705
1.0
%
Saturn SHC Buyer Holdings, Inc. (e) (h)
Health Care Providers & Services
S+ 6.50%, 11/18/2027
—
(19)
(2,580)
(0.1)
%
Saturn SHC Buyer Holdings, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.28%), 11/18/2027
37,166
37,099
29,733
1.7
%
Saturn SHC Buyer Holdings, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.24%), 11/18/2027
12,993
12,912
10,394
0.6
%
Saturn Sound Bidco, Ltd. (a) (e) (h)
Aerospace & Defense
S+ 5.25%, 12/3/2031
—
(17)
—
—
%
Saturn Sound Bidco, Ltd. (a) (e) (n) (p)
Aerospace & Defense
S+ 5.25% (8.91%), 12/3/2031
24,800
24,613
24,800
1.4
%
SCIH Salt Holdings, Inc. (e) (h)
Chemicals
C+ 3.50%, 12/15/2026
—
(1)
(15)
0.0
%
Sherlock Buyer Corp. (e) (h)
Professional Services
S+ 5.75%, 12/8/2029
—
(4)
—
—
%
Sherlock Buyer Corp. (e) (n) (p)
Professional Services
S+ 5.75% (9.48%), 12/6/2030
15,476
15,430
15,476
0.9
%
Simplifi Holdings, Inc. (e) (h)
Media
S+ 5.25% (8.97%), 6/30/2028
1,926
1,913
1,926
0.1
%
Simplifi Holdings, Inc. (e) (n)
Media
S+ 5.25% (8.97%), 12/29/2028
49,267
48,969
49,267
2.8
%
SitusAMC Holdings Corp. (e) (n) (p)
Financial Services
S+ 5.50% (9.20%), 5/14/2031
51,868
51,713
51,868
2.9
%
Striper Buyer, LLC (e) (n)
Containers & Packaging
S+ 5.50% (9.22%), 1/2/2029
14,965
14,958
14,501
0.8
%
SunMed Group Holdings, LLC (e) (h)
Health Care Equipment & Supplies
S+ 5.50%, 6/16/2027
—
(1)
—
—
%
SunMed Group Holdings, LLC (e) (n)
Health Care Equipment & Supplies
S+ 5.50% (9.26%), 6/16/2028
12,373
12,300
12,373
0.7
%
Tax Defense Network, LLC (e) (j)
Diversified Consumer Services
P+ 6.00% (12.75%) PIK, 3/31/2023
68,287
927
—
—
%
Tax Defense Network, LLC (e) (j)
Diversified Consumer Services
P+ 6.00% (12.75%) PIK, 3/31/2023
12,122
164
—
—
%
The accompanying notes are an integral part of these consolidated financial statements.
15
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Tax Defense Network, LLC (e) (j)
Diversified Consumer Services
12.00% PIK, 3/31/2023
$
6,391
$
4,742
$
6,391
0.4
%
TEI Intermediate, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75% (8.39%), 12/15/2031
5,235
5,175
5,235
0.3
%
TEI Intermediate, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75% (8.42%), 12/15/2031
384
378
384
0.0
%
TEI Intermediate, LLC (e) (n) (p)
Commercial Services & Supplies
S+ 5.25% (8.98%) 2.88% PIK, 12/15/2031
23,349
23,345
23,349
1.3
%
The NPD Group, LP (e) (h)
Professional Services
S+ 4.25%, 12/1/2028
—
(15)
—
—
%
The NPD Group, LP (e) (n)
Professional Services
S+ 4.25% (7.89%), 12/1/2029
52,102
51,656
52,102
2.9
%
Therapy Brands Holdings, LLC (e) (n)
Health Care Technology
S+ 4.00% (7.93%), 5/18/2028
5,921
5,920
5,536
0.3
%
Tivity Health, Inc. (e) (n)
Health Care Providers & Services
S+ 5.00% (8.64%), 6/28/2029
24,167
23,941
24,167
1.3
%
Trinity Air Consultants Holdings Corp. (e)
Professional Services
S+ 4.25% (8.03%), 6/29/2029
16,143
16,011
16,143
0.9
%
Trinity Air Consultants Holdings Corp. (e) (h)
Professional Services
S+ 4.25%, 6/29/2029
—
(14)
—
—
%
Trinity Air Consultants Holdings Corp. (e) (h)
Professional Services
S+ 4.25%, 6/29/2029
—
(7)
—
—
%
Triple Lift, Inc. (e) (h)
Media
S+ 5.75%, 5/5/2028
—
(29)
(282)
0.0
%
Triple Lift, Inc. (e) (n) (p)
Media
S+ 5.75% (9.58%), 5/5/2028
38,770
38,213
36,443
1.9
%
Trystar, LLC (e)
Electrical Equipment
S+ 4.25% (7.91%), 8/6/2031
12,552
12,450
12,552
0.7
%
Trystar, LLC (e) (h)
Electrical Equipment
S+ 4.25%, 8/6/2031
—
(46)
—
—
%
Trystar, LLC (e) (n) (p)
Electrical Equipment
S+ 4.25% (7.91%), 8/6/2031
22,896
22,724
22,896
1.3
%
Trystar, LLC (e) (p)
Electrical Equipment
S+ 4.25% (7.91%), 8/6/2031
10,311
10,236
10,311
0.6
%
Urban One, Inc. (b)
Media
12/18/2025
10.50%, 4/1/2030
164
158
157
0.0
%
US Oral Surgery Management Holdco, LLC (e)
Health Care Providers & Services
S+ 5.25% (9.02%), 11/20/2028
5,050
5,034
5,050
0.3
%
US Oral Surgery Management Holdco, LLC (e) (h)
Health Care Providers & Services
S+ 5.25%, 11/20/2028
—
(3)
—
—
%
US Oral Surgery Management Holdco, LLC (e) (n)
Health Care Providers & Services
S+ 5.25% (9.01%), 11/20/2028
6,997
6,968
6,997
0.4
%
US Oral Surgery Management Holdco, LLC (e) (n)
Health Care Providers & Services
S+ 5.25% (9.01%), 11/20/2028
6,098
6,084
6,098
0.3
%
US Oral Surgery Management Holdco, LLC (e) (n)
Health Care Providers & Services
S+ 5.25% (9.02%), 11/20/2028
17,668
17,580
17,668
1.0
%
US Salt Investors, LLC (a) (e)
Chemicals
S+ 4.25% (7.98%), 2/28/2033
16,679
16,527
16,521
0.9
%
US Salt Investors, LLC (a) (e) (h)
Chemicals
S+ 4.25%, 2/26/2033
—
(18)
(18)
0.0
%
Vanco Payment Solutions, LLC (e)
Software
S+ 4.75% (8.45%), 12/1/2031
11,203
11,151
11,092
0.6
%
Vanco Payment Solutions, LLC (e) (h)
Software
S+ 4.75%, 12/1/2031
—
(5)
(5)
0.0
%
Varicent Intermediate Holdings Corp. (e)
Software
S+ 6.00% (9.73%) 3.25% PIK, 8/23/2031
6,452
6,408
6,339
0.4
%
The accompanying notes are an integral part of these consolidated financial statements.
16
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Varicent Intermediate Holdings Corp. (e) (h)
Software
S+ 6.00%, 3.25% PIK, 8/23/2031
$
—
$
(5)
$
(21)
0.0
%
Varicent Intermediate Holdings Corp. (e) (h)
Software
S+ 6.00%, 3.25% PIK, 8/23/2031
—
(14)
(35)
0.0
%
Varicent Intermediate Holdings Corp. (e) (h)
Software
S+ 6.00%, 3.25% PIK, 8/23/2031
—
(33)
(54)
0.0
%
Varicent Intermediate Holdings Corp. (e) (n) (p)
Software
S+ 6.00% (9.73%) 3.25% PIK, 8/23/2031
21,451
21,230
21,076
1.2
%
Victors CCC Buyer, LLC (e)
Professional Services
S+ 4.50% (8.17%), 6/1/2029
2,969
2,942
2,969
0.2
%
Victors CCC Buyer, LLC (e)
Professional Services
S+ 4.50% (8.17%), 6/1/2029
942
934
942
0.1
%
Victors CCC Buyer, LLC (e)
Professional Services
S+ 4.50% (8.17%), 6/1/2029
1,543
1,530
1,543
0.1
%
Victors CCC Buyer, LLC (e) (h)
Professional Services
S+ 4.50%, 6/1/2029
—
(4)
—
—
%
Victors CCC Buyer, LLC (e) (h)
Professional Services
S+ 4.50%, 6/1/2029
—
(11)
—
—
%
Victors CCC Buyer, LLC (e) (n)
Professional Services
S+ 4.50% (8.17%), 6/1/2029
23,334
23,106
23,334
1.3
%
West Coast Dental Services, Inc. (e) (h)
Health Care Providers & Services
S+ 5.75% (9.63%), 7/1/2028
3,630
3,603
2,901
0.2
%
West Coast Dental Services, Inc. (e)
Health Care Providers & Services
S+ 5.75% (9.60%), 7/1/2028
1,656
1,639
1,325
0.1
%
West Coast Dental Services, Inc. (e)
Health Care Providers & Services
S+ 5.75% (9.56%), 7/1/2028
27,732
27,470
22,186
1.2
%
Westwood Professional Services, Inc. (e) (h)
Construction & Engineering
S+ 4.75% (8.48%), 9/19/2031
6,942
6,861
6,942
0.4
%
Westwood Professional Services, Inc. (e) (h)
Construction & Engineering
S+ 4.75%, 9/19/2031
—
(51)
—
—
%
Westwood Professional Services, Inc. (e) (n) (p)
Construction & Engineering
S+ 4.75% (8.48%), 9/19/2031
44,621
44,281
44,621
2.5
%
Wharf Street Ratings Acquisition, LLC (e) (h)
Capital Markets
S+ 4.50%, 9/16/2032
—
(13)
(26)
0.0
%
Wharf Street Ratings Acquisition, LLC (e) (h)
Capital Markets
S+ 4.50%, 9/16/2032
—
(25)
(26)
0.0
%
Wharf Street Ratings Acquisition, LLC (e) (n)
Capital Markets
S+ 4.50% (8.14%), 9/16/2032
25,668
25,434
25,440
1.4
%
WHCG Purchaser III, Inc. (e)
Health Care Providers & Services
S+ 6.50% (10.20%) 3.25% PIK, 6/29/2029
24,712
24,712
24,712
1.4
%
WIN Holdings III Corp. (e) (h)
Diversified Consumer Services
S+ 5.00% (8.72%), 1/16/2028
3,575
3,566
3,575
0.2
%
WIN Holdings III Corp. (e) (n)
Diversified Consumer Services
S+ 5.00% (8.72%), 7/16/2028
41,683
41,605
41,683
2.3
%
WIN Holdings III Corp. (e) (n)
Diversified Consumer Services
S+ 5.00% (8.75%), 7/16/2028
9,865
9,753
9,865
0.6
%
WIN Holdings III Corp. (e) (n)
Diversified Consumer Services
S+ 5.00% (8.74%), 7/16/2028
20,154
20,007
20,154
1.1
%
Wipfli Advisory, LLC (e) (h)
Financial Services
S+ 4.25% (7.98%), 10/1/2032
994
991
980
0.1
%
The accompanying notes are an integral part of these consolidated financial statements.
17
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Wipfli Advisory, LLC (e) (h)
Financial Services
S+ 4.25%, 10/1/2032
$
—
$
(18)
$
(18)
0.0
%
Wipfli Advisory, LLC (e) (n)
Financial Services
S+ 4.25% (7.98%), 10/1/2032
16,096
16,063
16,060
0.9
%
Zendesk, Inc. (e)
Software
S+ 5.00% (8.73%), 11/22/2028
5,463
5,463
5,376
0.3
%
Zendesk, Inc. (e)
Software
S+ 5.00% (8.73%), 11/22/2028
10,409
10,330
10,243
0.6
%
Zendesk, Inc. (e) (h)
Software
S+ 5.00%, 11/22/2028
—
—
(105)
0.0
%
Zendesk, Inc. (e) (n)
Software
S+ 5.00% (8.73%), 11/22/2028
64,564
64,231
63,531
3.5
%
Subtotal Senior Secured First Lien Debt
$
3,188,484
$
3,111,375
173.8
%
Senior Secured Second Lien Debt - 8.4% (d)
Alera Group, Inc. (n) (p)
Insurance
S+ 5.50% (9.14%), 5/30/2033
$
22,191
$
22,098
$
21,063
1.2
%
American Rock Salt Company, LLC (e) (n)
Chemicals
S+ 7.25% (11.24%), 6/11/2029
6,010
5,977
5,276
0.3
%
Ascensus Group Holdings, Inc.
Financial Services
S+ 5.25% (8.98%), 11/25/2033
16,682
16,606
16,765
0.9
%
Corelogic, Inc. (n)
Capital Markets
S+ 6.50% (10.26%), 6/4/2029
9,272
8,823
9,110
0.5
%
Coronis Health I, LLC (e) (m)
Health Care Technology
5.00% PIK, 5/1/2032
2,820
2,820
2,820
0.2
%
Hologic, Inc.
Health Care Equipment & Supplies
S+ 5.00% (8.75%), 4/7/2034
7,075
6,995
6,964
0.4
%
Lakeland Tours, LLC (e) (j) (p)
Diversified Consumer Services
9.00% PIK, 3/29/2030
2,873
1,967
2,026
0.1
%
Obra Capital, Inc. (e)
Capital Markets
14.00% PIK, 12/21/2029
4,499
4,092
4,095
0.2
%
ORG GC Holdings, LLC (e) (j) (m)
Professional Services
18.00% PIK, 11/29/2027
7,676
6,226
2,433
0.1
%
Pluto Acquisition I, Inc. (e) (n)
Health Care Providers & Services
S+ 8.75% (12.41%), 12/20/2028
40,167
36,119
33,540
1.9
%
Resilience Parent, LLC (e)
Electrical Equipment
S+ 5.25% (8.98%), 2/27/2034
9,727
9,636
9,634
0.5
%
Victory Buyer, LLC (e) (n)
Machinery
S+ 6.00% (9.66%), 2/13/2034
38,325
37,959
37,961
2.1
%
Subtotal Senior Secured Second Lien Debt
$
159,318
$
151,687
8.4
%
Subordinated Debt - 15.4% (d)
Aventine Holdings, LLC (e) (j)
Entertainment
10.25% PIK, 12/22/2030
$
51,176
$
49,802
$
36,847
2.1
%
Kahala Ireland Opco DAC (a) (e) (h) (l)
Asset Based Financing
15.00%, 12/31/2032
—
—
—
—
%
Kahala Aviation, LLC (e) (l)
Asset Based Financing
13.50%, 8/31/2031
58,990
58,703
58,990
3.3
%
OSV Thunderbold Topco, Inc. (e)
Professional Services
12.00% PIK, 1/30/2034
4,780
4,780
4,185
0.2
%
Post Road Equipment Finance, LLC (c) (e) (h) (l)
Asset Based Financing
S+ 7.75% (11.42%), 12/31/2028
—
(73)
—
—
%
Post Road Equipment Finance, LLC (c) (e) (h) (l)
Asset Based Financing
S+ 7.75% (11.42%), 12/31/2028
31,000
30,995
31,000
1.7
%
Post Road Equipment Finance, LLC (c) (e) (l)
Asset Based Financing
S+ 7.75% (11.42%), 12/31/2028
62,600
62,622
62,600
3.5
%
The accompanying notes are an integral part of these consolidated financial statements.
18
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
NewStar Fairfield Fund CLO, Ltd. 2015-1RA SUB (a) (b) (e) (m) (r)
Capital Markets
1/24/2024
0.00%, 1/20/2027
31,575
(12)
467
0.0
%
Sub Total Collateralized Securities - Equity Investments
$
3,151
$
650
0.0
%
Equity/Other - 29.9% (d) (f)
BCPE Oceandrive Buyer, Inc. (b) (e) (g) (l)
Health Care Providers & Services
10/31/2025
265,831
$
12,528
$
12,529
0.7
%
Black Mountain Sand, LLC (b) (e) (q)
Energy Equipment & Services
7/1/2025
55,436
2,170
1,304
0.1
%
Center Phase Energy, LLC (b) (e) (q)
Electric Utilities
6/23/2022
1,680
1,680
2,386
0.1
%
Center Phase Energy, LLC (b) (e) (q)
Electric Utilities
8/22/2025
270
445
748
0.0
%
Cirque Du Soleil Holding USA Newco, Inc. (a) (b) (g)
Entertainment
1/24/2024
1,413,708
16,127
18,849
1.1
%
Cornerstone Chemical, Co. (b) (e) (g)
Chemicals
1/24/2024
327,378
11,626
—
—
%
Coronis Health I, LLC (b) (e) (g) (m)
Health Care Technology
5/1/2025
5,319
4,900
4,900
0.3
%
FBLC Senior Loan Fund, LLC (a) (b) (c) (e) (l)
Investment in Joint Ventures
1/24/2024
224,956
225,161
218,207
12.2
%
Foresight Energy Operating, LLC (b) (e) (g) (q)
Oil, Gas & Consumable Fuels
1/24/2024
158,093
3,063
876
0.0
%
GoHealth, Inc. (g) (q)
Insurance
3,131
—
1
0.0
%
Gordian Medical, Inc. (b) (e) (g)
Health Care Providers & Services
5/17/2024
157,787
—
—
—
%
Gordian Medical, Inc. (b) (e) (g) (n)
Health Care Providers & Services
5/17/2024
166,787
2,997
2,944
0.2
%
Higginbotham Insurance Agency, Inc. (b) (e)
Insurance
12/10/2024
10.50%, 11/25/2028
10,199
10,046
10,046
0.6
%
Integrated Efficiency Solutions, Inc. (b) (e) (g) (m) (q)
Electrical Equipment
1/24/2024
55,991
—
—
—
%
International Cruise & Excursion Gallery, Inc. (b) (e) (g) (p)
Hotels, Restaurants & Leisure
12/31/2024
179,900
—
—
—
%
The accompanying notes are an integral part of these consolidated financial statements.
19
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Kahala Aviation, LLC (b) (e) (g) (l)
Asset Based Financing
10/2/2024
15,212,266
$
15,826
$
16,125
0.9
%
Lakeland Tours, LLC (b) (e) (g) (p)
Diversified Consumer Services
3/2/2026
207,087
—
—
—
%
McDonald Worley, P.C. (b) (e) (g)
Professional Services
1/24/2024
20,167
3,118
10,828
0.6
%
Motor Vehicle Software Corp. (b) (e) (g) (t)
Software
1/24/2024
223,503
355
1,077
0.1
%
Muth Mirror Systems, LLC (b) (e) (g) (q)
Automobile Components
1/24/2024
22,819
—
—
—
%
Muth Mirror Systems, LLC (b) (e) (g) (q)
Automobile Components
1/24/2024
153,038
—
—
—
%
ORG GC Holdings, LLC (b) (e) (g) (m) (q)
Professional Services
1/24/2024
1,771
—
—
—
%
ORG GC Holdings, LLC (b) (e) (g) (m) (q)
Professional Services
2/1/2025
15.00% PIK, 11/29/2031
17,686,676
—
—
—
%
Obra Capital, Inc. (b) (e) (g)
Capital Markets
5/4/2026
1,304
332
332
0.0
%
OSV Thunderbold Topco, Inc. (b) (e) (g)
Professional Services
1/30/2026
577,005
—
589
0.0
%
PennantPark Credit Opportunities Fund II, LP (a) (b) (g) (m)
Capital Markets
1/24/2024
8,739
962
653
0.0
%
Pluralsight, LLC (b) (e) (g)
Software
8/22/2024
2,267,044
5,986
—
—
%
Point Broadband Acquisition, LLC (b) (e) (g) (q)
Diversified Telecommunication Services
10/29/2024
164,759
—
124
0.0
%
Point Broadband Acquisition, LLC (b) (e) (g) (q)
Diversified Telecommunication Services
10/1/2021
3,710,315
4,941
4,935
0.3
%
Post Road Equipment Finance, LLC (b) (c) (e) (l) (q)
Asset Based Financing
12/30/2021
199,972
128,429
138,475
7.7
%
Resolute Investment Managers, Inc. (b) (e) (g)
Capital Markets
1/24/2024
61,958
2,026
112
0.0
%
RMP Group, Inc. (b) (e) (g) (q)
Health Care Technology
1/24/2024
223
333
43
0.0
%
Siena Capital Finance, LLC (b) (e) (l)
Asset Based Financing
1/24/2024
41,789,400
77,437
85,668
4.8
%
Smile Brands, Inc. (b) (e) (g)
Health Care Providers & Services
1/24/2024
439
—
—
—
%
Squan Holding Corp. (b) (e) (g)
Wireless Telecommunication Services
1/24/2024
180,835
—
—
—
%
Tax Defense Network, LLC (b) (e) (g)
Diversified Consumer Services
1/24/2024
147,099
—
—
—
%
Tax Defense Network, LLC (b) (e) (g)
Diversified Consumer Services
1/24/2024
633,382
—
—
—
%
Tennenbaum Waterman Fund, LP (a) (b) (g) (m)
Capital Markets
1/24/2024
10,000
1,668
392
0.0
%
Travelpro Products, Inc. (a) (b) (e) (g)
Textiles, Apparel & Luxury Goods
1/24/2024
447,007
913
63
0.0
%
WHCG Purchaser III, Inc. (b) (e) (g)
Health Care Providers & Services
8/2/2024
5,448,273
—
—
—
%
World Business Lenders, LLC (b) (e)
Financial Services
1/24/2024
922,669
1,617
3,967
0.2
%
YummyEarth, Inc. (b) (e) (g)
Food Products
1/24/2024
781
—
—
—
%
Subtotal Equity/Other
$
534,686
$
536,173
29.9
%
The accompanying notes are an integral part of these consolidated financial statements.
20
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(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)
Total Investments - 227.8% (d)
$
4,177,726
$
4,079,384
227.8
%
Interest Rate Swaps:
Hedged Item
Company Receives
Company Pays
Counterparty
Maturity Date
Notional Amount
Fair Value
Upfront Payments/Receipts
Change in Unrealized Appreciation/Depreciation
N/A
S+ 0.097%
4.14%
Wells Fargo, N.A
1/1/2029
$
20,025
$
(45)
$
—
$
(45)
2030 Notes
6.00%
S+ 2.515%
Wells Fargo, N.A
10/2/2030
$
300,000
$
(5,701)
$
—
$
(5,701)
(a) 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 June 30, 2026, qualifying assets represent 91.9% of the Company's total assets.
(b) Securities exempt from registration under the Securities Act of 1933 (as defined below), and may be deemed to be “restricted securities.” As of June 30, 2026, the aggregate fair value of these securities is $540.2 million or 30.2% 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) Percentages are based on net assets attributable to common stock as of June 30, 2026.
(e) 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 to the consolidated financial statements).
(f) All amounts are in thousands except share amounts.
(g) Non-income producing at June 30, 2026.
(h) 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 for additional details.
(i) The majority of the investments bear interest at a rate that may be determined by reference Secured Overnight Financing Rate (“SOFR” or “S”), Canadian Overnight Repo Rate Average (“C”), 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 June 30, 2026. 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) The investment is on non-accrual status as of June 30, 2026.
(k) Unless otherwise indicated, all investments in the consolidated schedules of investments are non-affiliated, non-controlled investments.
(l) 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) 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) The Company's investment or a portion thereof is pledged as collateral under the JPM Credit Facility.
(o) Unless otherwise indicated, all of the Company's investments or a portion thereof are pledged as collateral under the JPM Revolver Facility.
The accompanying notes are an integral part of these consolidated financial statements.
21
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(Unaudited)
(p) The Company's investment or a portion thereof is pledged as collateral under the Wells Fargo Credit Facility (as defined below). Individual investments can be divided into parts which are pledged to separate credit facilities.
(q) Investments are held in the taxable wholly-owned, consolidated subsidiary, 54th Street Equity Holdings, Inc.
(r) 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.
(s) For equity investments in Collateralized Securities, the effective yield is presented in place of the investment coupon rate for each investment. Refer to footnote (r) for a further description of an equity investment in a Collateralized Security.
(t) 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 June 30, 2026.
The accompanying notes are an integral part of these consolidated financial statements.
22
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
June 30, 2026
(Unaudited)
The following table shows the portfolio composition by industry grouping based on fair value at June 30, 2026:
Industry
Investments at Fair Value
Percentage of Total Portfolio
Asset Based Financing
$
465,358
11.4
%
Health Care Providers & Services
434,352
10.6
%
Professional Services
402,973
9.9
%
Software
387,794
9.5
%
Investment in Joint Ventures
218,207
5.3
%
Aerospace & Defense
199,497
4.9
%
Construction & Engineering
199,346
4.9
%
Machinery
166,284
4.1
%
Financial Services
160,308
3.9
%
Capital Markets
138,413
3.4
%
Containers & Packaging
111,331
2.7
%
Media
102,384
2.5
%
Trading Companies & Distributors
96,010
2.4
%
Food Products
92,519
2.3
%
Entertainment
90,207
2.2
%
Electrical Equipment
84,030
2.1
%
Diversified Consumer Services
83,694
2.1
%
Commercial Services & Supplies
82,038
2.0
%
Insurance
76,462
1.9
%
Chemicals
71,189
1.7
%
Diversified Telecommunication Services
67,878
1.7
%
Consumer Staples Distribution & Retail
65,439
1.6
%
Wireless Telecommunication Services
51,867
1.3
%
Air Freight & Logistics
42,527
1.0
%
Distributors
29,255
0.7
%
Electric Utilities
28,548
0.7
%
Specialty Retail
28,153
0.7
%
Oil, Gas & Consumable Fuels
23,951
0.6
%
Beverages
20,180
0.5
%
Health Care Equipment & Supplies
19,337
0.5
%
Health Care Technology
18,555
0.5
%
Life Sciences Tools & Services
14,035
0.3
%
Automobile Components
4,538
0.1
%
Hotels, Restaurants & Leisure
1,358
0.0
%
Energy Equipment & Services
1,304
0.0
%
Textiles, Apparel & Luxury Goods
63
0.0
%
Total
$
4,079,384
100.0
%
The accompanying notes are an integral part of these consolidated financial statements.
23
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
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 - 170.4% (d)
1236904 BC, Ltd. (e) (n)
Software
S+ 7.50% (11.33%), 3/4/2027
$
3,511
$
3,523
$
3,511
0.2
%
1236904 BC, Ltd. (e) (n) (p)
Software
S+ 5.50% (9.97%), 3/4/2027
4,588
4,531
4,588
0.2
%
Accel International Holdings, LLC (e) (h)
Electrical Equipment
S+ 4.50%, 4/26/2032
—
(21)
(21)
0.0
%
Accel International Holdings, LLC (e) (n) (p)
Electrical Equipment
S+ 4.50% (8.22%), 4/26/2032
27,685
27,553
27,560
1.6
%
ADCS Clinics Intermediate Holdings, LLC (e)
Health Care Providers & Services
S+ 6.25% (10.05%), 5/7/2027
124
123
123
0.0
%
ADCS Clinics Intermediate Holdings, LLC (e) (h)
Health Care Providers & Services
S+ 6.25% (10.15%), 5/7/2026
257
256
243
0.0
%
ADCS Clinics Intermediate Holdings, LLC (e) (n)
Health Care Providers & Services
S+ 6.25% (9.95%), 5/7/2027
3,854
3,832
3,825
0.2
%
ADCS Clinics Intermediate Holdings, LLC (e) (n)
Health Care Providers & Services
S+ 6.25% (10.05%), 5/7/2027
18,799
18,704
18,658
1.0
%
Adelaide Borrower, LLC (e) (h)
Software
S+ 6.75%, 3.38% PIK, 5/8/2030
—
(61)
—
—
%
Adelaide Borrower, LLC (e) (h)
Software
S+ 6.25% (9.98%), 5/8/2030
898
826
898
0.0
%
Adelaide Borrower, LLC (e) (n) (p)
Software
S+ 6.75% (10.42%) 3.38% PIK, 5/8/2030
35,895
35,327
35,895
2.0
%
American Rock Salt Company, LLC (n)
Chemicals
S+ 4.00% (7.94%), 6/9/2028
1,977
1,975
1,516
0.1
%
Amylu Borrower Sub, LLC (e) (h)
Food Products
S+ 5.00%, 6/10/2031
—
(31)
—
—
%
Amylu Borrower Sub, LLC (e) (h)
Food Products
S+ 5.00%, 6/10/2031
—
(72)
—
—
%
Amylu Borrower Sub, LLC (e) (n)
Food Products
S+ 5.00% (8.74%), 6/10/2031
39,435
39,067
39,436
2.1
%
Aprio Advisory Group, LLC (e) (h)
Financial Services
S+ 4.75%, 8/1/2031
—
(56)
(112)
0.0
%
Aprio Advisory Group, LLC (e) (h)
Financial Services
S+ 4.75%, 8/1/2031
—
(9)
(9)
0.0
%
Arch Global Precision, LLC (e) (h)
Machinery
S+ 4.75% (8.52%), 1/23/2026
945
945
938
0.1
%
Arch Global Precision, LLC (e)
Machinery
S+ 4.75% (8.52%), 4/1/2026
2,284
2,285
2,241
0.1
%
Arch Global Precision, LLC (e) (n) (p)
Machinery
S+ 4.75% (8.52%), 4/1/2026
7,249
7,250
7,112
0.4
%
Arctic Holdco, LLC (e) (h)
Trading Companies & Distributors
S+ 5.25% (9.09%), 1/31/2032
3,243
3,204
3,243
0.2
%
Arctic Holdco, LLC (e) (h)
Trading Companies & Distributors
S+ 5.25% (8.92%), 1/31/2031
632
603
632
0.0
%
Arctic Holdco, LLC (e) (n) (p)
Trading Companies & Distributors
S+ 5.25% (8.92%), 1/31/2032
45,922
45,515
45,922
2.6
%
Armada Parent, Inc. (e)
Aerospace & Defense
S+ 5.25% (9.12%), 10/29/2030
3,841
3,804
3,841
0.2
%
Armada Parent, Inc. (e) (h)
Aerospace & Defense
S+ 5.25%, 10/29/2030
—
(25)
—
—
%
Armada Parent, Inc. (e) (n)
Aerospace & Defense
S+ 5.25% (9.07%), 10/29/2030
55,492
55,226
55,492
3.0
%
Artifact Bidco, Inc. (e) (h)
Software
S+ 4.15%, 7/28/2031
—
(11)
—
—
%
The accompanying notes are an integral part of these consolidated financial statements.
24
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
Artifact Bidco, Inc. (e) (h)
Software
S+ 4.15%, 7/26/2030
$
—
$
(14)
$
—
—
%
Artifact Bidco, Inc. (e) (n) (p)
Software
S+ 4.15% (7.82%), 7/28/2031
10,875
10,784
10,875
0.6
%
AuditBoard, Inc. (e)
Software
S+ 4.50% (8.24%), 7/14/2031
10,898
10,802
10,898
0.6
%
AuditBoard, Inc. (e) (h)
Software
S+ 4.50%, 7/14/2031
—
(34)
—
—
%
AuditBoard, Inc. (e) (n)
Software
S+ 4.50% (8.17%), 7/14/2031
22,887
22,690
22,887
1.2
%
AuditBoard, Inc. (e) (n)
Software
S+ 4.50% (8.24%), 7/14/2031
5,742
5,702
5,742
0.3
%
Aventine Holdings, LLC (e) (n)
Entertainment
S+ 6.00% (9.77%) 3.50% PIK, 6/18/2029
9,939
9,889
9,809
0.5
%
Aventine Holdings, LLC (e) (n) (p)
Entertainment
S+ 6.00% (9.77%) 3.50% PIK, 6/18/2029
25,106
24,975
24,777
1.3
%
Axiom Global, Inc. (e) (n) (p)
Professional Services
S+ 4.50% (8.44%), 10/2/2028
46,658
46,487
46,659
2.5
%
Azurite Intermediate Holdings, Inc. (e)
Software
S+ 6.00% (9.72%), 3/19/2031
22,639
22,357
22,639
1.2
%
Azurite Intermediate Holdings, Inc. (e) (h)
Software
S+ 6.00%, 3/19/2031
—
(40)
—
—
%
Azurite Intermediate Holdings, Inc. (e)
Software
S+ 6.00% (9.72%), 3/19/2031
9,961
9,837
9,961
0.5
%
Bayou Holdings Buyer, Inc. (e) (h)
Professional Services
S+ 4.75%, 9/18/2031
—
(10)
(29)
0.0
%
Bayou Holdings Buyer, Inc. (e) (h)
Professional Services
S+ 4.75%, 9/18/2031
—
(31)
(31)
0.0
%
Bayou Holdings Buyer, Inc. (e) (n)
Professional Services
S+ 4.75% (8.42%), 9/18/2031
21,303
21,201
21,200
1.2
%
BCPE Oceandrive Buyer, Inc. (e) (h) (l)
Health Care Providers & Services
18.00% PIK, 4/30/2035
—
(163)
—
—
%
BCPE Oceandrive Buyer, Inc. (e) (l)
Health Care Providers & Services
S+ 6.25% (10.19%) PIK, 4/30/2035
4,984
4,984
4,984
0.3
%
BCPE Oceandrive Buyer, Inc. (e) (l)
Health Care Providers & Services
S+ 6.25% (10.19%) PIK, 4/30/2035
8,307
8,307
8,307
0.5
%
Big Apple Advisory, LLC (e) (h)
Financial Services
S+ 4.50% (8.17%), 11/18/2031
5,209
5,087
5,209
0.3
%
Big Apple Advisory, LLC (e) (h)
Financial Services
S+ 4.50%, 11/18/2031
—
(54)
—
—
%
Big Apple Advisory, LLC (e) (n) (p)
Financial Services
S+ 4.50% (8.24%), 11/18/2031
47,166
46,779
47,166
2.7
%
Bingo Group Buyer, Inc. (e) (h)
Commercial Services & Supplies
S+ 4.75%, 7/10/2031
—
(17)
—
—
%
Bingo Group Buyer, Inc. (e)
Commercial Services & Supplies
S+ 4.75% (8.68%), 7/10/2031
1,551
1,536
1,551
0.1
%
Bingo Group Buyer, Inc. (e)
Commercial Services & Supplies
S+ 4.75% (8.42%), 7/10/2031
1,691
1,672
1,691
0.1
%
Bingo Group Buyer, Inc. (e) (h)
Commercial Services & Supplies
S+ 4.75% (8.42%), 7/10/2031
20
14
20
0.0
%
Bingo Group Buyer, Inc. (e) (n) (p)
Commercial Services & Supplies
S+ 5.00% (8.67%), 7/10/2031
5,410
5,352
5,410
0.3
%
Capstone Acquisition Holdings, Inc. (e)
Air Freight & Logistics
S+ 4.50% (8.32%), 11/13/2029
208
206
208
0.0
%
The accompanying notes are an integral part of these consolidated financial statements.
25
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
Capstone Acquisition Holdings, Inc. (e) (n)
Air Freight & Logistics
S+ 4.50% (8.32%), 11/13/2029
$
20,550
$
20,555
$
20,550
1.1
%
Carr, Riggs & Ingram Capital, LLC (e) (h)
Financial Services
S+ 4.25% (7.92%), 11/18/2031
1,592
1,559
1,592
0.1
%
Carr, Riggs & Ingram Capital, LLC (e) (h)
Financial Services
S+ 4.25%, 11/18/2031
—
(23)
—
—
%
Carr, Riggs & Ingram Capital, LLC (e) (n) (p)
Financial Services
S+ 4.25% (7.92%), 11/18/2031
11,620
11,521
11,620
0.6
%
CCI Buyer, Inc. (e) (h)
Wireless Telecommunication Services
S+ 5.00%, 5/13/2032
—
(28)
—
—
%
CCI Buyer, Inc. (e) (n) (p)
Wireless Telecommunication Services
S+ 5.00% (8.67%), 5/13/2032
52,128
51,622
52,129
2.9
%
Center Phase Energy, LLC (e) (n)
Electric Utilities
S+ 6.00% (9.85%), 6/23/2027
10,305
10,249
10,305
0.6
%
Center Phase Energy, LLC (e) (n)
Electric Utilities
S+ 6.00% (9.85%), 6/23/2027
15,186
14,929
15,186
0.8
%
Charter Industries Holdings, LLC (e) (h)
Distributors
S+ 4.75%, 10/1/2032
—
(17)
(34)
0.0
%
Charter Industries Holdings, LLC (e) (h)
Distributors
S+ 4.75%, 10/1/2032
—
(51)
(51)
0.0
%
Charter Industries Holdings, LLC (e) (n)
Distributors
S+ 4.75% (8.74%), 10/1/2032
30,096
29,798
29,807
1.6
%
Cliffwater, LLC (e) (h)
Financial Services
S+ 4.75%, 4/22/2032
—
(26)
—
—
%
Cliffwater, LLC (e) (n) (p)
Financial Services
S+ 4.75% (8.47%), 4/22/2032
30,154
29,871
30,154
1.6
%
Coalesce Merlin Purchaser, LLC (e) (h)
Commercial Services & Supplies
S+ 5.00% (8.78%), 9/10/2031
780
746
715
0.0
%
Coalesce Merlin Purchaser, LLC (e) (h)
Commercial Services & Supplies
S+ 5.00%, 9/10/2031
—
(29)
(32)
0.0
%
Coalesce Merlin Purchaser, LLC (e) (n) (p)
Commercial Services & Supplies
S+ 5.00% (8.72%), 9/10/2031
17,415
17,307
17,300
0.9
%
Cold Spring Brewing, Co. (e) (n) (p)
Beverages
S+ 4.75% (8.49%), 12/10/2030
20,556
20,386
20,556
1.1
%
Communication Technology Intermediate, LLC (e) (h)
Professional Services
S+ 5.50% (9.22%), 5/5/2027
1,188
1,183
1,188
0.1
%
Communication Technology Intermediate, LLC (e) (n)
Professional Services
S+ 5.50% (9.22%), 5/5/2027
24,672
24,612
24,672
1.3
%
Communication Technology Intermediate, LLC (e) (n)
Professional Services
S+ 5.50% (9.22%), 5/5/2027
24,357
24,223
24,357
1.3
%
Communication Technology Intermediate, LLC (e) (n)
Professional Services
S+ 5.50% (9.22%), 5/5/2027
2,420
2,402
2,420
0.1
%
Communication Technology Intermediate, LLC (e) (n) (p)
Professional Services
S+ 5.50% (9.22%), 5/5/2027
8,582
8,568
8,582
0.5
%
Consolidated Precision Products Corp. (e) (q)
Aerospace & Defense
10.14%, 1/1/2030
21,531
21,531
21,867
1.2
%
Corfin Industries, LLC (e)
Electrical Equipment
S+ 5.25% (9.07%), 12/27/2027
1,549
1,550
1,549
0.1
%
Corfin Industries, LLC (e)
Electrical Equipment
S+ 5.25% (9.07%), 12/27/2027
9,435
9,442
9,435
0.5
%
Corfin Industries, LLC (e) (n) (p)
Electrical Equipment
S+ 5.25% (9.07%), 12/27/2027
15,849
15,853
15,849
0.9
%
Corfin Industries, LLC (e) (n) (p)
Electrical Equipment
S+ 5.25% (9.07%), 12/27/2027
19,582
19,406
19,582
1.1
%
Coronis Health I, LLC (e) (h) (m)
Health Care Technology
S+ 4.50% (8.35%), 5/1/2030
532
532
532
0.0
%
Coronis Health I, LLC (e) (m)
Health Care Technology
S+ 7.00% (10.85%) PIK, 5/1/2031
4,225
4,225
4,225
0.2
%
The accompanying notes are an integral part of these consolidated financial statements.
26
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
Demakes Borrower, LLC (e) (n)
Consumer Staples Distribution & Retail
S+ 6.00% (9.67%), 12/12/2029
$
17,577
$
17,280
$
17,577
1.0
%
Einstein Parent, Inc. (e) (h)
Software
S+ 6.50%, 1/22/2031
—
(39)
(12)
0.0
%
Einstein Parent, Inc. (e) (n) (p)
Software
S+ 6.50% (10.36%), 1/22/2031
22,317
21,926
22,206
1.2
%
Electric Power Engineers, LLC (e) (h)
Professional Services
S+ 4.50%, 12/31/2031
—
(57)
—
—
%
Electric Power Engineers, LLC (e) (h)
Professional Services
S+ 4.50%, 12/31/2031
—
(46)
—
—
%
Electric Power Engineers, LLC (e) (n) (p)
Professional Services
S+ 4.50% (8.17%), 12/31/2031
27,909
27,662
27,909
1.5
%
Electro-Methods, LP (e) (h)
Machinery
S+ 4.75%, 2/23/2032
—
(109)
—
—
%
Electro-Methods, LP (e) (n) (p)
Machinery
S+ 4.75% (8.62%), 2/23/2032
34,412
33,949
34,412
1.9
%
Eliassen Group, LLC (e) (n)
Professional Services
S+ 5.75% (9.42%), 4/14/2028
1,344
1,342
1,344
0.1
%
Eliassen Group, LLC (e) (n) (p)
Professional Services
S+ 5.75% (9.42%), 4/14/2028
16,802
16,728
16,802
0.9
%
Faraday Buyer, LLC (e) (n)
Electrical Equipment
S+ 6.00% (9.67%), 10/11/2028
40,804
40,803
40,805
2.3
%
Faraday Buyer, LLC (e) (n)
Electrical Equipment
S+ 6.00% (9.67%), 10/11/2028
8,644
8,543
8,644
0.5
%
FGT Purchaser, LLC (e) (h)
Specialty Retail
S+ 5.50% 3.00% PIK, 9/13/2028
—
(4)
(296)
0.0
%
FGT Purchaser, LLC (e) (n)
Specialty Retail
S+ 5.50% (9.27%) 3.00% PIK, 9/13/2028
31,120
31,064
28,164
1.5
%
Florida Food Products, LLC (n)
Food Products
S+ 5.00% (9.05%), 10/15/2030
10,073
9,973
7,555
0.4
%
Florida Food Products, LLC (e) (n)
Food Products
S+ 5.50% (9.43%), 10/15/2030
2,011
1,917
1,916
0.1
%
Florida Food Products, LLC (n)
Food Products
S+ 5.50% (9.43%), 10/15/2030
1,916
1,897
1,890
0.1
%
Flow Traders Holding, LLC (a) (e) (h)
Capital Markets
S+ 5.00%, 10/29/2031
—
(91)
(91)
0.0
%
Flow Traders Holding, LLC (a) (e)
Capital Markets
S+ 5.00% (8.84%), 10/29/2031
16,631
16,385
16,389
0.9
%
FloWorks International, LLC (e)
Machinery
S+ 4.75% (8.57%), 11/26/2031
4,958
4,912
4,958
0.3
%
FloWorks International, LLC (e) (n) (p)
Machinery
S+ 4.75% (8.57%), 11/26/2031
39,366
39,023
39,366
2.1
%
Foresight Energy Operating, LLC (e)
Oil, Gas & Consumable Fuels
S+ 8.00% (11.77%), 6/30/2027
1,037
1,038
1,037
0.1
%
Galway Borrower, LLC (e) (h)
Insurance
S+ 4.50% (8.17%), 9/29/2028
920
903
920
0.0
%
Galway Borrower, LLC (e) (h)
Insurance
S+ 4.50% (8.19%), 9/29/2028
581
573
581
0.0
%
Galway Borrower, LLC (e) (n)
Insurance
S+ 4.50% (8.17%), 9/29/2028
38,101
38,019
38,101
2.1
%
Groome Purchaser, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75%, 8/29/2031
—
(17)
(33)
0.0
%
Groome Purchaser, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75%, 8/29/2031
—
(25)
(49)
0.0
%
Groome Purchaser, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75%, 8/29/2031
—
(25)
(25)
0.0
%
The accompanying notes are an integral part of these consolidated financial statements.
27
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
Groome Purchaser, LLC (e) (n)
Commercial Services & Supplies
S+ 4.75% (8.48%), 8/29/2031
$
16,523
$
16,363
$
16,368
0.9
%
High Street Buyer, Inc. (e) (h)
Insurance
S+ 4.50% (8.17%), 4/14/2028
3,478
3,356
3,259
0.2
%
Hometown Food, Co. (e) (n) (p)
Food Products
S+ 4.50% (8.28%), 12/3/2030
15,106
14,964
14,973
0.8
%
Hospice Care Buyer, Inc. (e)
Health Care Providers & Services
S+ 6.50% (10.69%), 1/9/2028
4,615
4,584
4,615
0.3
%
Hospice Care Buyer, Inc. (e) (h)
Health Care Providers & Services
S+ 6.50% (10.41%), 1/9/2028
2,085
2,081
2,085
0.1
%
Hospice Care Buyer, Inc. (e)
Health Care Providers & Services
S+ 6.50% (10.69%), 1/9/2028
2,132
2,116
2,132
0.1
%
Hospice Care Buyer, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.69%), 1/9/2028
24,828
24,645
24,828
1.3
%
Hospice Care Buyer, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.13%), 1/9/2028
6,444
6,394
6,444
0.4
%
Hospice Care Buyer, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.69%), 1/9/2028
8,401
8,336
8,401
0.5
%
Hospice Care Buyer, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.69%), 1/9/2028
3,528
3,501
3,528
0.2
%
ICAT Intermediate Holdings, LLC (e) (h)
Ground Transportation
S+ 6.25% (9.97%), 3/1/2029
2,171
2,092
2,050
0.1
%
ICAT Intermediate Holdings, LLC (e) (h)
Ground Transportation
S+ 6.25%, 3/1/2029
—
(19)
(18)
0.0
%
ICAT Intermediate Holdings, LLC (e) (n)
Ground Transportation
S+ 6.25% (9.97%), 3/1/2029
17,307
17,050
17,066
0.9
%
ICR Operations, LLC (e) (h)
Professional Services
S+ 5.50% (9.33%), 11/22/2027
3,784
3,753
3,784
0.2
%
ICR Operations, LLC (e) (n)
Professional Services
S+ 5.50% (9.32%), 11/22/2028
40,839
40,423
40,839
2.2
%
ICR Operations, LLC (e) (n)
Professional Services
S+ 5.50% (9.32%), 11/22/2028
2,219
2,197
2,219
0.1
%
Ideal Tridon Holdings, Inc. (e) (h)
Machinery
S+ 5.00%, 6/30/2032
—
(36)
(72)
0.0
%
Ideal Tridon Holdings, Inc. (e) (h)
Machinery
S+ 5.00% (8.72%), 6/30/2032
865
804
804
0.0
%
Ideal Tridon Holdings, Inc. (e) (n) (p)
Machinery
S+ 5.00% (8.67%), 6/30/2032
42,268
41,861
41,876
2.4
%
IG Investments Holdings, LLC (e) (h)
Professional Services
S+ 5.00%, 9/22/2028
—
(19)
—
—
%
IG Investments Holdings, LLC (e) (n)
Professional Services
S+ 5.00% (8.84%), 9/22/2028
26,001
26,001
26,001
1.4
%
Indigo Buyer, Inc. (e) (h)
Containers & Packaging
S+ 5.25% (9.07%), 5/23/2028
4,007
3,925
4,007
0.2
%
Indigo Buyer, Inc. (e) (h)
Containers & Packaging
S+ 5.25%, 5/23/2028
—
(23)
—
—
%
Indigo Buyer, Inc. (e) (n)
Containers & Packaging
S+ 5.25% (9.09%), 5/23/2028
60,879
60,879
60,879
3.3
%
InhabitIQ, Inc. (e) (h)
Software
S+ 4.50%, 1/12/2032
—
(16)
(31)
0.0
%
InhabitIQ, Inc. (e) (h)
Software
S+ 4.50%, 1/12/2032
—
(20)
(20)
0.0
%
InhabitIQ, Inc. (e) (n) (p)
Software
S+ 4.50% (8.22%), 1/12/2032
26,009
25,898
25,897
1.4
%
Integrated Efficiency Solutions, Inc. (e) (m)
Electrical Equipment
7.50%, 12/31/2027
1,378
1,379
1,378
0.1
%
The accompanying notes are an integral part of these consolidated financial statements.
28
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
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 Global Services, Inc. (e) (h)
Commercial Services & Supplies
S+ 5.00%, 3/6/2032
$
—
$
(36)
$
(72)
0.0
%
Integrated Global Services, Inc. (e) (h)
Commercial Services & Supplies
P+ 4.00% (10.75%), 3/6/2031
1,641
1,561
1,560
0.1
%
Integrated Global Services, Inc. (e) (n) (p)
Commercial Services & Supplies
S+ 5.00% (8.74%), 3/6/2032
32,581
32,131
32,151
1.7
%
International Cruise & Excursion Gallery, Inc. (e) (p)
Hotels, Restaurants & Leisure
S+ 6.00% (9.67%), 12/29/2028
1,358
1,358
1,358
0.1
%
IQN Holding Corp. (e)
Software
S+ 5.75% (9.42%) 3.13% PIK, 5/2/2029
5,790
5,790
5,790
0.3
%
IQN Holding Corp. (e) (h)
Software
S+ 5.25% (8.92%), 5/2/2028
988
986
988
0.1
%
IQN Holding Corp. (e) (n) (p)
Software
S+ 5.75% (9.42%) 3.13% PIK, 5/2/2029
17,329
17,248
17,329
0.9
%
Knowledge Pro Buyer, Inc. (e) (h)
Professional Services
S+ 4.50% (8.32%), 12/10/2029
21,622
21,495
21,622
1.2
%
Knowledge Pro Buyer, Inc. (e) (h)
Professional Services
S+ 4.50%, 12/10/2029
—
(20)
—
—
%
Knowledge Pro Buyer, Inc. (e) (n) (p)
Professional Services
S+ 4.50% (8.32%), 12/10/2029
42,173
42,029
42,173
2.3
%
Labrie Environmental Group, LLC (a) (e)
Machinery
S+ 5.50% (9.32%), 4/23/2027
21,666
21,427
21,666
1.2
%
Lakeland Tours, LLC (e) (j) (n) (p)
Diversified Consumer Services
20.00% PIK, 9/25/2027
90
84
45
0.0
%
Lakeland Tours, LLC (e) (j) (p)
Diversified Consumer Services
10.00%, 9/25/2027
6,118
4,518
1,414
0.1
%
LaserShip, Inc.
Ground Transportation
S+ 8.50% (12.43%) 7.00% PIK, 8/10/2029
2,888
2,888
838
0.0
%
Last Dance Intermediate II, LLC (e) (h)
Diversified Telecommunication Services
S+ 5.25% (8.97%), 3/31/2031
4,159
4,048
3,987
0.2
%
Last Dance Intermediate II, LLC (e) (h)
Diversified Telecommunication Services
S+ 5.25%, 3/31/2031
—
(44)
(44)
0.0
%
Last Dance Intermediate II, LLC (e) (n) (p)
Diversified Telecommunication Services
S+ 5.25% (8.97%), 3/31/2031
19,054
18,873
18,884
1.0
%
Last Dance Intermediate II, LLC (e) (n) (p)
Diversified Telecommunication Services
S+ 5.25% (8.97%), 3/31/2031
19,312
19,044
19,059
1.0
%
Lighthouse Intelligence, Ltd. (a) (e) (h)
Software
S+ 5.00%, 2.50% PIK, 4/10/2030
—
(78)
(154)
0.0
%
Lighthouse Intelligence, Ltd. (a) (e) (h)
Software
S+ 5.00% 2.50% PIK, 4/10/2030
—
(110)
(110)
0.0
%
Lighthouse Intelligence, Ltd. (a) (e)
Software
S+ 5.00% (8.72%) 2.50% PIK, 4/10/2030
22,660
22,361
22,370
1.2
%
LSF12 Donnelly Bidco, LLC (e) (n)
Machinery
S+ 6.50% (10.22%), 10/2/2029
18,739
18,427
18,739
1.0
%
Mandrake Bidco, Inc. (e) (h)
Machinery
S+ 4.50%, 8/20/2030
—
(81)
—
—
%
Mandrake Bidco, Inc. (e) (n) (p)
Machinery
S+ 4.50% (8.34%), 8/20/2031
55,557
55,084
55,557
3.0
%
The accompanying notes are an integral part of these consolidated financial statements.
29
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
Manna Pro Products, LLC (e)
Specialty Retail
S+ 6.50% (10.31%) 3.50% PIK , 12/10/2029
$
3,973
$
3,920
$
3,341
0.2
%
Manna Pro Products, LLC (e) (h)
Specialty Retail
S+ 6.50%, 3.50% PIK, 12/10/2029
—
(22)
(430)
0.0
%
Manna Pro Products, LLC (e) (p)
Specialty Retail
S+ 6.50% (10.31%) 3.50% PIK 12/10/2029
1,894
1,869
1,593
0.1
%
Manna Pro Products, LLC (e) (p)
Specialty Retail
S+ 6.50% (10.31%) 3.50% PIK, 12/10/2029
6,812
6,721
5,729
0.3
%
Manna Pro Products, LLC (e) (p)
Specialty Retail
S+ 6.50% (10.31%) 3.50% PIK, 12/10/2029
24,024
23,702
20,204
1.1
%
McDonald Worley, P.C. (e) (h) (j)
Professional Services
26.00% PIK, 12/31/2025
39,353
14,018
6,513
0.4
%
Medical Management Resource Group, LLC (e) (h)
Health Care Providers & Services
S+ 5.75% (9.54%), 9/30/2026
772
768
744
0.0
%
Medical Management Resource Group, LLC (e) (n)
Health Care Providers & Services
S+ 5.75% (9.52%), 9/30/2027
9,309
9,248
9,184
0.5
%
Medical Management Resource Group, LLC (e) (n)
Health Care Providers & Services
S+ 5.75% (9.52%), 9/30/2027
22,538
22,388
22,233
1.2
%
Megavolt Borrower, LLC (e) (n) (p)
Construction & Engineering
S+ 4.75% (8.42%), 2/13/2032
36,989
36,325
36,989
2.0
%
MGTF Radio Company, LLC (e) (j) (l)
Media
S+ 6.00% (10.30%), 3/31/2026
45,021
45,020
11,408
0.6
%
Michael Baker International, LLC (e)
Professional Services
S+ 4.50% (8.19%), 12/1/2028
18,787
18,224
18,223
1.0
%
Midwest Can Company, LLC (e) (n) (p)
Containers & Packaging
S+ 6.00% (9.82%), 3/2/2026
27,902
27,902
27,902
1.5
%
Mirra-Primeaccess Holdings, LLC (e) (h)
Health Care Providers & Services
S+ 6.50% (10.60%), 7/29/2026
8,442
8,437
7,316
0.4
%
Mirra-Primeaccess Holdings, LLC (e)
Health Care Providers & Services
S+ 6.50% (10.60%), 7/29/2026
68,088
68,020
61,279
3.3
%
MRI Software, LLC (e) (h)
Software
S+ 4.75% (8.42%), 2/10/2028
52
51
52
0.0
%
MRI Software, LLC (e) (h)
Software
S+ 4.75% (8.44%), 2/10/2028
11
11
11
0.0
%
MRI Software, LLC (e)
Software
S+ 4.75% (8.75%), 2/10/2028
2,180
2,180
2,180
0.1
%
MRI Software, LLC (e)
Software
S+ 4.75% (8.42%), 2/10/2027
6,734
6,704
6,734
0.4
%
Muth Mirror Systems, LLC (e) (h) (j)
Automobile Components
11.00%, 4.00% PIK, 3/31/2027
1,051
998
396
0.0
%
Muth Mirror Systems, LLC (e) (j)
Automobile Components
11.00%, 4.00% PIK, 3/31/2027
15,248
14,188
7,624
0.4
%
MWH Intermediate II, LLC (e) (h)
Financial Services
S+ 4.50% (8.23%), 8/27/2032
2,005
1,966
1,941
0.1
%
MWH Intermediate II, LLC (e) (h)
Financial Services
S+ 4.50%, 8/29/2031
—
(13)
(13)
0.0
%
MWH Intermediate II, LLC (e) (n)
Financial Services
S+ 4.50% (8.19%), 8/27/2032
15,393
15,279
15,284
0.8
%
Norvax, LLC (e)
Insurance
S+ 11.39% (15.28%) 6.89% PIK, 8/6/2029
371
371
354
0.0
%
Norvax, LLC (e)
Insurance
S+ 5.50% (9.24%), 8/5/2029
228
228
228
0.0
%
Odessa Technologies, Inc. (e) (h)
Software
S+ 5.50%, 10/19/2027
—
(10)
—
—
%
The accompanying notes are an integral part of these consolidated financial statements.
30
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
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) (n)
Software
S+ 5.50% (9.27%), 10/19/2027
$
20,236
$
20,195
$
20,236
1.1
%
ORG GC Holdings, LLC (e) (m)
Professional Services
S+ 6.50% (10.43%), 11/29/2026
10,111
10,122
10,111
0.5
%
Palmdale Oil Co., LLC (e)
Oil, Gas & Consumable Fuels
S+ 4.75% (8.38%), 12/12/2031
3,351
3,335
3,335
0.2
%
PetVet Care Centers, LLC (e) (h)
Health Care Providers & Services
S+ 6.00% (9.84%), 11/15/2029
403
390
210
0.0
%
PetVet Care Centers, LLC (e) (n) (p)
Health Care Providers & Services
S+ 6.00% (9.72%), 11/15/2030
30,296
29,851
28,841
1.6
%
Pie Buyer, Inc. (e)
Consumer Staples Distribution & Retail
S+ 5.50% (9.92%), 4/6/2026
2,581
2,581
2,323
0.1
%
Pie Buyer, Inc. (e) (n)
Consumer Staples Distribution & Retail
S+ 5.50% (9.92%), 4/5/2027
8,653
8,637
7,787
0.4
%
Pie Buyer, Inc. (e) (n)
Consumer Staples Distribution & Retail
S+ 5.50% (9.92%), 4/5/2027
2,269
2,267
2,042
0.1
%
Pie Buyer, Inc. (e) (n) (p)
Consumer Staples Distribution & Retail
S+ 5.50% (9.92%), 4/5/2027
39,979
39,895
35,981
2.0
%
Pie Buyer, Inc. (e) (n) (p)
Consumer Staples Distribution & Retail
S+ 5.50% (9.49%), 4/5/2027
2,956
2,950
2,660
0.1
%
Pluralsight, LLC (e)
Software
S+ 4.50% (8.32%) 1.50% PIK, 8/22/2029
4,600
4,600
4,600
0.2
%
Pluralsight, LLC (e)
Software
S+ 7.50% (11.32%) PIK, 8/22/2029
7,917
7,917
7,422
0.4
%
Pluralsight, LLC (e)
Software
S+ 4.50% (8.32%) 1.50% PIK, 8/22/2029
2,336
2,336
2,336
0.1
%
Pluto Acquisition I, Inc.
Health Care Providers & Services
S+ 5.50% (9.19%), 6/20/2028
3,304
3,304
3,337
0.2
%
Questex, Inc. (e) (h)
Media
S+ 5.50%, 5/15/2029
—
(26)
(32)
0.0
%
Questex, Inc. (e) (p)
Media
S+ 5.50% (9.38%), 5/15/2029
14,949
14,725
14,703
0.8
%
Reagent Chemical and Research, LLC (e)
Chemicals
S+ 5.25% (9.17%), 4/30/2031
5,605
5,526
5,605
0.3
%
Reagent Chemical and Research, LLC (e) (h)
Chemicals
S+ 5.25%, 4/30/2030
—
(107)
—
—
%
Reagent Chemical and Research, LLC (e) (n) (p)
Chemicals
S+ 5.25% (9.17%), 4/30/2031
44,416
43,719
44,417
2.4
%
Relativity Oda, LLC (e) (n)
Software
S+ 4.50% (8.22%), 5/12/2029
7,717
7,696
7,717
0.4
%
Rialto Management Group, LLC (e) (h)
Financial Services
S+ 5.00%, 12/5/2030
—
(6)
—
—
%
Rialto Management Group, LLC (e) (n) (p)
Financial Services
S+ 5.00% (8.72%), 12/5/2030
20,178
20,004
20,178
1.1
%
Roadsafe Holdings, Inc. (e) (n)
Transportation Infrastructure
S+ 5.75% (9.65%), 10/19/2027
7,286
7,291
7,286
0.4
%
Roadsafe Holdings, Inc. (e) (n)
Transportation Infrastructure
S+ 5.75% (9.65%), 10/19/2027
6,779
6,759
6,779
0.4
%
Roadsafe Holdings, Inc. (e) (n) (p)
Transportation Infrastructure
S+ 5.75% (9.63%), 10/19/2027
11,930
11,903
11,930
0.6
%
The accompanying notes are an integral part of these consolidated financial statements.
31
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
Roadsafe Holdings, Inc. (e) (n) (p)
Transportation Infrastructure
P+ 4.75% (11.50%), 10/19/2027
$
1,075
$
1,062
$
1,075
0.1
%
Saab Purchaser, Inc. (e) (h)
Software
S+ 4.75%, 11/12/2031
—
(83)
(166)
0.0
%
Saab Purchaser, Inc. (e) (h)
Software
S+ 4.75%, 11/12/2031
—
(22)
(22)
0.0
%
Saab Purchaser, Inc. (e) (n)
Software
S+ 4.75% (8.42%), 11/12/2031
17,877
17,702
17,705
1.0
%
Saturn SHC Buyer Holdings, Inc. (e) (h)
Health Care Providers & Services
S+ 6.50%, 11/18/2027
—
(25)
(1,290)
(0.1)
%
Saturn SHC Buyer Holdings, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.33%), 11/18/2027
37,166
37,078
33,449
1.8
%
Saturn SHC Buyer Holdings, Inc. (e) (n)
Health Care Providers & Services
S+ 6.50% (10.33%), 11/18/2027
12,993
12,882
11,693
0.6
%
Saturn Sound Bidco, Ltd. (a) (e) (h)
Trading Companies & Distributors
S+ 5.25%, 12/3/2031
—
(19)
(38)
0.0
%
Saturn Sound Bidco, Ltd. (a) (e) (n) (p)
Trading Companies & Distributors
S+ 5.25% (9.09%), 12/3/2031
24,800
24,588
24,589
1.3
%
SCIH Salt Holdings, Inc. (e) (h)
Chemicals
C+ 3.50% (5.75%), 12/15/2026
330
328
315
0.0
%
Sherlock Buyer Corp. (e) (h)
Professional Services
S+ 5.75%, 12/8/2029
—
(4)
—
—
%
Sherlock Buyer Corp. (e) (n) (p)
Professional Services
S+ 5.75% (9.42%), 12/8/2030
15,558
15,509
15,558
0.8
%
Simplifi Holdings, Inc. (e) (h)
Media
S+ 5.25% (9.07%), 6/30/2028
516
509
516
0.0
%
Simplifi Holdings, Inc. (e) (n)
Media
S+ 5.25% (9.27%), 12/29/2028
49,524
49,159
49,524
2.7
%
SitusAMC Holdings Corp. (e) (n) (p)
Financial Services
S+ 5.50% (9.17%), 5/14/2031
52,129
51,949
52,130
2.8
%
Striper Buyer, LLC (e) (n)
Containers & Packaging
S+ 5.50% (9.32%),12/30/2026
16,652
16,637
16,652
0.9
%
SunMed Group Holdings, LLC (e) (h)
Health Care Equipment & Supplies
S+ 5.50%, 6/16/2027
—
(1)
—
—
%
SunMed Group Holdings, LLC (e) (n)
Health Care Equipment & Supplies
S+ 5.50% (9.44%), 6/16/2028
12,438
12,345
12,438
0.7
%
Tax Defense Network, LLC (e) (j)
Diversified Consumer Services
P+ 6.00% (12.75%) PIK, 3/31/2023
63,545
927
—
—
%
Tax Defense Network, LLC (e) (j)
Diversified Consumer Services
P+ 6.00% (12.75%) PIK, 3/31/2023
11,280
164
—
—
%
Tax Defense Network, LLC (e) (j)
Diversified Consumer Services
12.00% PIK, 3/31/2023
6,022
4,742
6,022
0.3
%
TEI Intermediate, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75% (8.63%), 12/15/2031
932
889
932
0.1
%
TEI Intermediate, LLC (e) (h)
Commercial Services & Supplies
S+ 4.75% (8.61%), 12/15/2031
859
852
859
0.0
%
TEI Intermediate, LLC (e) (n) (p)
Commercial Services & Supplies
S+ 5.25% (8.85%) 2.88% PIK, 12/15/2031
23,015
23,005
23,015
1.3
%
The NPD Group, LP (e) (h)
Professional Services
S+ 4.25%, 12/1/2028
—
(19)
—
—
%
The NPD Group, LP (e) (n)
Professional Services
S+ 4.25% (7.97%),12/1/2029
52,102
51,600
52,102
2.8
%
The accompanying notes are an integral part of these consolidated financial statements.
32
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
Therapy Brands Holdings, LLC (e) (n)
Health Care Technology
S+ 4.00% (7.83%),5/18/2028
$
5,952
$
5,950
$
5,565
0.3
%
Tivity Health, Inc. (e) (n)
Health Care Providers & Services
S+ 5.00% (8.72%), 6/28/2029
24,291
24,028
24,291
1.3
%
Trinity Air Consultants Holdings Corp. (e) (h)
Professional Services
S+ 4.50%, 6/29/2029
—
(16)
—
—
%
Trinity Air Consultants Holdings Corp. (e) (h)
Professional Services
S+ 4.50%, 6/29/2029
—
(9)
—
—
%
Trinity Air Consultants Holdings Corp. (e)
Professional Services
S+ 4.50% (8.48%), 6/29/2029
16,224
16,070
16,224
0.9
%
Triple Lift, Inc. (e) (h)
Media
S+ 5.75%, 5/5/2028
—
(37)
(282)
0.0
%
Triple Lift, Inc. (e) (n) (p)
Media
S+ 5.75% (9.60%), 5/5/2028
38,973
38,257
36,635
2.0
%
Trystar, LLC (e) (h)
Electrical Equipment
S+ 4.25% (8.09%), 8/6/2031
2,926
2,861
2,926
0.2
%
Trystar, LLC (e) (h)
Electrical Equipment
S+ 4.25%,8/6/2031
—
(50)
—
—
%
Trystar, LLC (e) (n) (p)
Electrical Equipment
S+ 4.25% (8.09%), 8/6/2031
24,549
24,340
24,549
1.3
%
Trystar, LLC (e) (p)
Electrical Equipment
S+ 4.25% (8.09%), 8/6/2031
10,364
10,278
10,364
0.6
%
Urban One, Inc. (b)
Media
12/18/2025
10.50%, 4/1/2030
245
235
235
0.0
%
US Oral Surgery Management Holdco, LLC (e)
Health Care Providers & Services
S+ 5.25% (9.17%), 11/20/2028
5,050
5,029
5,050
0.3
%
US Oral Surgery Management Holdco, LLC (e) (h)
Health Care Providers & Services
S+ 5.25%, 11/20/2028
—
(3)
—
—
%
US Oral Surgery Management Holdco, LLC (e) (n)
Health Care Providers & Services
S+ 5.25% (9.19%), 11/20/2028
6,997
6,960
6,997
0.4
%
US Oral Surgery Management Holdco, LLC (e) (n)
Health Care Providers & Services
S+ 5.25% (9.12%), 11/20/2028
6,098
6,079
6,098
0.3
%
US Oral Surgery Management Holdco, LLC (e) (n)
Health Care Providers & Services
S+ 5.25% (9.17%), 11/20/2028
17,668
17,555
17,668
1.0
%
US Salt Investors, LLC (e) (h)
Metals & Mining
S+ 5.25%, 7/20/2026
—
(2)
—
—
%
US Salt Investors, LLC (e) (n)
Metals & Mining
S+ 5.25% (9.07%),7/19/2028
25,657
25,397
25,657
1.4
%
Vanco Payment Solutions, LLC (e) (h)
Software
S+ 4.75%, 12/1/2031
—
(5)
(5)
0.0
%
Vanco Payment Solutions, LLC (e)
Software
S+ 4.75% (8.42%), 12/1/2031
11,259
11,202
11,147
0.6
%
Varicent Intermediate Holdings Corp. (e) (h)
Software
S+ 6.25% 3.38%PIK , 8/23/2031
—
(6)
—
—
%
Varicent Intermediate Holdings Corp. (e)
Software
S+ 6.25% (9.92%) 3.38% PIK, 8/23/2031
5,423
5,376
5,423
0.3
%
Varicent Intermediate Holdings Corp. (e) (h)
Software
S+ 6.25% 3.38% PIK, 8/23/2031
—
(23)
—
—
%
Varicent Intermediate Holdings Corp. (e) (h)
Software
S+ 6.25%, 3.38% PIK, 8/23/2031
—
(36)
—
—
%
Varicent Intermediate Holdings Corp. (e) (n) (p)
Software
S+ 6.25% (9.92%) 3.38% PIK, 8/23/2031
21,107
20,862
21,107
1.1
%
Victors CCC Buyer, LLC (e)
Professional Services
S+ 4.75% (8.52%), 6/1/2029
1,551
1,536
1,551
0.1
%
Victors CCC Buyer, LLC (e) (h)
Professional Services
S+ 4.75%, 6/1/2029
—
(13)
—
—
%
Victors CCC Buyer, LLC (e) (n)
Professional Services
S+ 4.75% (8.48%), 6/1/2029
23,455
23,197
23,455
1.3
%
The accompanying notes are an integral part of these consolidated financial statements.
33
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
West Coast Dental Services, Inc. (e) (h)
Health Care Providers & Services
S+ 5.75% (9.57%), 7/1/2028
$
3,630
$
3,596
$
2,898
0.2
%
West Coast Dental Services, Inc. (e) (n)
Health Care Providers & Services
S+ 5.75% (9.57%), 7/1/2028
1,665
1,643
1,332
0.1
%
West Coast Dental Services, Inc. (e) (n)
Health Care Providers & Services
S+ 5.75% (9.80%), 7/1/2028
27,874
27,571
22,299
1.2
%
Westwood Professional Services, Inc. (e) (h)
Construction & Engineering
S+ 4.50% (8.17%), 9/19/2031
4,429
4,355
4,429
0.2
%
Westwood Professional Services, Inc. (e) (h)
Construction & Engineering
S+ 4.50%, 9/19/2031
—
(56)
—
—
%
Westwood Professional Services, Inc. (e) (n) (p)
Construction & Engineering
S+ 4.50% (8.17%), 9/19/2031
44,848
44,485
44,848
2.4
%
Wharf Street Ratings Acquisition, LLC (e) (h)
Capital Markets
S+ 4.75%, 9/16/2032
—
(14)
(28)
0.0
%
Wharf Street Ratings Acquisition, LLC (e) (h)
Capital Markets
S+ 4.75%, 9/16/2032
—
(27)
(28)
0.0
%
Wharf Street Ratings Acquisition, LLC (e) (n)
Capital Markets
S+ 4.75% (8.47%), 9/16/2032
25,797
25,544
25,550
1.4
%
WHCG Purchaser III, Inc. (e)
Health Care Providers & Services
S+ 6.50% (10.17%) 3.25% PIK, 6/29/2029
24,091
24,091
24,091
1.3
%
WIN Holdings III Corp. (e) (h)
Diversified Consumer Services
S+ 5.00% (8.82%), 1/16/2028
1,192
1,178
1,192
0.1
%
WIN Holdings III Corp. (e) (n)
Diversified Consumer Services
S+ 5.00% (8.82%), 7/16/2028
41,683
41,590
41,683
2.3
%
WIN Holdings III Corp. (e) (n)
Diversified Consumer Services
S+ 5.00% (8.83%), 7/16/2028
9,915
9,776
9,915
0.5
%
WIN Holdings III Corp. (e) (n)
Diversified Consumer Services
S+ 5.00% (8.85%), 7/16/2028
20,255
20,071
20,255
1.1
%
Wipfli Advisory, LLC (e) (h)
Financial Services
S+ 4.50%, 10/1/2032
—
—
(14)
0.0
%
Wipfli Advisory, LLC (e) (h)
Financial Services
S+ 4.50%, 10/1/2032
—
(19)
(19)
0.0
%
Wipfli Advisory, LLC (e) (n)
Financial Services
S+ 4.50% (8.16%), 10/1/2032
16,096
16,055
16,057
0.9
%
Zendesk, Inc. (e)
Software
S+ 5.00% (8.69%), 11/22/2028
10,462
10,364
10,462
0.6
%
Zendesk, Inc. (e) (n)
Software
S+ 5.00% (8.69%), 11/22/2028
64,884
64,464
64,884
3.5
%
Subtotal Senior Secured First Lien Debt
$
3,215,223
$
3,136,374
170.4
%
Senior Secured Second Lien Debt - 8.3% (d)
Alera Group, Inc. (n) (p)
Insurance
S+ 5.50% (9.22%), 5/30/2033
$
22,136
$
22,028
$
22,528
1.2
%
American Rock Salt Company, LLC (e) (n)
Chemicals
S+ 7.25% (11.33%), 6/11/2029
6,010
5,971
4,855
0.3
%
Ascensus Group Holdings, Inc. (e)
Financial Services
S+ 5.25% (8.92%), 11/25/2033
16,682
16,599
16,600
0.9
%
Corelogic, Inc. (n)
IT Services
S+ 6.50% (10.33%), 6/4/2029
9,272
8,760
9,326
0.5
%
Coronis Health I, LLC (e) (m)
Health Care Technology
5.00% PIK , 5/1/2032
2,751
2,751
2,751
0.1
%
The accompanying notes are an integral part of these consolidated financial statements.
34
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB (a) (b) (e) (m) (r)
Capital Markets
1/24/2024
0.00%, 1/20/2027
31,575
—
477
0.0
%
Sub Total Collateralized Securities - Equity Investment
$
3,163
$
477
0.0
%
The accompanying notes are an integral part of these consolidated financial statements.
35
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
Equity/Other - 28.2% (d) (f)
BCPE Oceandrive Buyer, Inc. (b) (e) (g) (l) (p)
Health Care Providers & Services
10/31/2025
265,831
$
12,528
$
12,528
0.7
%
Black Mountain Sand, LLC (b) (e) (g) (q)
Energy Equipment & Services
7/1/2025
55,436
2,170
1,304
0.1
%
Center Phase Energy, LLC (b) (e) (q)
Electric Utilities
6/23/2022
1,680
1,680
2,386
0.1
%
Center Phase Energy, LLC (b) (e) (q)
Electric Utilities
8/22/2025
270
446
636
0.0
%
Cirque Du Soleil Holding USA Newco, Inc. (a) (b) (g) (m)
Entertainment
1/24/2024
1,413,708
16,128
14,632
0.8
%
Cornerstone Chemical, Co. (b) (e) (g)
Chemicals
1/24/2024
327,378
11,626
3,107
0.2
%
Coronis Health I, LLC (b) (e) (g) (m)
Health Care Technology
5/1/2025
5,319
4,900
4,900
0.3
%
CRS-SPV, Inc. (b) (e) (g) (m)
Chemicals
1/24/2024
246
1,561
2,008
0.1
%
FBLC Senior Loan Fund, LLC (b) (c) (e) (l)
Investment in Joint Ventures
1/24/2024
224,956
225,161
224,956
12.2
%
Foresight Energy Operating, LLC (b) (e) (g) (q)
Oil, Gas & Consumable Fuels
1/24/2024
158,093
3,063
876
0.0
%
GoHealth, Inc. (g) (q)
Insurance
3,131
—
7
0.0
%
Gordian Medical, Inc. (b) (e) (g)
Health Care Providers & Services
5/17/2024
157,787
—
—
—
%
Gordian Medical, Inc. (b) (e) (n)
Health Care Providers & Services
5/17/2024
166,787
2,997
2,944
0.2
%
Higginbotham Insurance Agency, Inc. (b) (e)
Insurance
12/10/2024
10.50%, 11/25/2028
10,199
10,046
10,046
0.5
%
Integrated Efficiency Solutions, Inc. (b) (e) (g) (m) (q)
Electrical Equipment
1/24/2024
55,991
—
—
—
%
Integrated Efficiency Solutions, Inc. (b) (e) (g) (m) (q)
Electrical Equipment
1/24/2024
57,427
—
—
—
%
International Cruise & Excursion Gallery, Inc. (b) (e) (g) (p)
Hotels, Restaurants & Leisure
12/31/2024
179,900
—
—
—
%
Kahala Aviation, LLC (b) (e) (g) (l)
Asset Based Financing
10/2/2024
9,745,276
10,359
10,330
0.6
%
McDonald Worley, P.C. (b) (e) (g)
Professional Services
1/24/2024
20,167
3,118
10,264
0.6
%
MGTF Holdco, LLC (b) (e) (g) (l) (q)
Media
1/24/2024
582,300
—
—
—
%
Motor Vehicle Software Corp. (b) (e) (g) (t)
Software
1/24/2024
223,503
349
1,077
0.1
%
Muth Mirror Systems, LLC (b) (e) (g) (q)
Automobile Components
1/24/2024
22,819
—
—
—
%
Muth Mirror Systems, LLC (b) (e) (g) (q)
Automobile Components
1/24/2024
153,038
—
—
—
%
ORG GC Holdings, LLC (b) (e) (g) (m) (q)
Professional Services
1/24/2024
1,771
—
—
—
%
ORG GC Holdings, LLC (b) (e) (g) (m) (q)
Professional Services
2/1/2025
15.00% PIK, 11/29/2031
12,539,911
—
—
—
%
PennantPark Credit Opportunities Fund II, LP (a) (b) (g) (m)
Capital Markets
1/24/2024
8,739
962
552
0.0
%
Pluralsight, LLC (b) (e) (g)
Software
8/22/2024
2,267,044
5,986
—
—
%
Point Broadband Acquisition, LLC (b) (e) (g) (q)
Diversified Telecommunication Services
10/29/2024
164,759
—
124
0.0
%
The accompanying notes are an integral part of these consolidated financial statements.
36
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
Portfolio Company (k) (o)
Industry
Acquisition Date
Investment Coupon Rate/ Maturity (i)
Principal/ Numbers of Shares
Amortized Cost
Fair Value
% of Net Assets (d)
Point Broadband Acquisition, LLC (b) (e) (g) (q)
Diversified Telecommunication Services
10/1/2021
3,710,315
$
4,941
$
4,935
0.3
%
Post Road Equipment Finance, LLC (b) (c) (e) (l) (q)
Asset Based Financing
12/30/2021
199,972
128,429
128,252
7.0
%
Resolute Investment Managers, Inc. (b) (e) (g)
Financial Services
1/24/2024
61,958
2,026
2,022
0.1
%
RMP Group, Inc. (b) (e) (g) (q)
Health Care Technology
1/24/2024
223
333
246
0.0
%
Siena Capital Finance, LLC (b) (e) (l)
Asset Based Financing
1/24/2024
41,789,400
77,437
77,728
4.2
%
Skillsoft Corp. (g)
Professional Services
12,435
187
116
0.0
%
Smile Brands, Inc. (b) (e) (g)
Health Care Providers & Services
1/24/2024
439
—
—
—
%
Squan Holding Corp. (b) (e) (g)
Wireless Telecommunication Services
1/24/2024
180,835
—
—
—
%
Tax Defense Network, LLC (b) (e) (g)
Diversified Consumer Services
1/24/2024
147,099
—
—
—
%
Tax Defense Network, LLC (b) (e) (g)
Diversified Consumer Services
1/24/2024
633,382
—
—
—
%
Tennenbaum Waterman Fund, LP (a) (b) (g) (m)
Capital Markets
1/24/2024
10,000
1,668
461
0.0
%
Travelpro Products, Inc. (a) (b) (e) (g)
Textiles, Apparel & Luxury Goods
1/24/2024
447,007
913
183
0.0
%
WHCG Purchaser III, Inc. (b) (e) (g)
Health Care Providers & Services
8/2/2024
5,448,273
—
—
—
%
World Business Lenders, LLC (b) (e) (g)
Financial Services
1/24/2024
922,669
1,617
1,615
0.1
%
WPNT, LLC (b) (e) (g) (l) (q)
Media
1/24/2024
582,300
—
—
—
%
YummyEarth, Inc. (b) (e) (g)
Food Products
1/24/2024
781
—
—
—
%
Subtotal Equity/Other
$
530,631
$
518,235
28.2
%
Total Investments - 221.2% (d)
$
4,178,354
$
4,071,008
221.2
%
Interest Rate Swaps:
Hedged Item
Company Receives
Company Pays
Counterparty
Maturity Date
Notional Amount
Fair Value
Upfront Payments/Receipts
Change in Unrealized Appreciation/Depreciation
N/A
S+ 0.097%
4.14%
Wells Fargo, N.A
1/1/2029
$
21,863
$
(336)
$
—
$
(336)
2030 Notes
6.00%
S+ 2.515%
Wells Fargo, N.A
10/2/2030
$
300,000
$
(609)
$
—
$
(609)
(a) 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, 2025, qualifying assets represent 92.2% of the Company's total assets.
(b) 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, 2025, the aggregate fair value of these securities is $523.7 million or28.5% of the Company’s net assets. The initial acquisition dates have been included for such securities.
The accompanying notes are an integral part of these consolidated financial statements.
37
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
(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) Percentages are based on net assets attributable to common stock as of December 31, 2025.
(e) 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 to the consolidated financial statements).
(f) All amounts are in thousands except share amounts.
(g) Non-income producing at December 31, 2025.
(h) 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 for additional details.
(i) The majority of the investments bear interest at a rate that may be determined by reference Secured Overnight Financing Rate (“SOFR” or “S”), Canadian Overnight Repo Rate Average (“C”), 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, 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) The investment is on non-accrual status as of December 31, 2025.
(k) Unless otherwise indicated, all investments in the consolidated schedules of investments are non-affiliated, non-controlled investments.
(l) 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) 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) The Company's investment or a portion thereof is pledged as collateral under the JPM Credit Facility (as defined below).
(o) Unless otherwise indicated, all of the Company's investments or a portion thereof are pledged as collateral under the JPM Revolver Facility (as defined below).
(p) 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) Investments are held in the taxable wholly-owned, consolidated subsidiary, 54th Street Equity Holdings, Inc.
(r) 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.
(s) For equity investments in Collateralized Securities, the effective yield is presented in place of the investment coupon rate for each investment. Refer to footnote (r) for a further description of an equity investment in a Collateralized Security.
(t) 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, 2025.
The accompanying notes are an integral part of these consolidated financial statements.
38
FRANKLIN BSP CAPITAL CORPORATION
CONSOLIDATED SCHEDULES OF INVESTMENTS
(dollars in thousands, except share and per share data)
December 31, 2025
The following table shows the portfolio composition by industry grouping based on fair value at December 31, 2025:
Industry
Investments at Fair Value
Percentage of Total Portfolio
Professional Services
$
468,638
11.8
%
Health Care Providers & Services
433,153
10.6
%
Asset Based Financing
424,322
10.4
%
Software
405,047
9.9
%
Machinery
227,597
5.6
%
Investment in Joint Ventures
224,956
5.5
%
Financial Services
221,401
5.4
%
Electrical Equipment
163,288
4.0
%
Media
113,197
2.8
%
Containers & Packaging
109,440
2.7
%
Commercial Services & Supplies
101,361
2.5
%
Entertainment
90,684
2.2
%
Construction & Engineering
86,266
2.1
%
Aerospace & Defense
81,200
2.0
%
Diversified Consumer Services
80,526
2.0
%
Insurance
76,024
1.9
%
Trading Companies & Distributors
74,348
1.8
%
Consumer Staples Distribution & Retail
68,370
1.7
%
Food Products
65,770
1.6
%
Chemicals
61,823
1.5
%
Specialty Retail
58,305
1.4
%
Capital Markets
57,134
1.4
%
Wireless Telecommunication Services
52,129
1.3
%
Diversified Telecommunication Services
46,945
1.2
%
Building Products
45,990
1.1
%
Distributors
29,722
0.7
%
Electric Utilities
28,513
0.7
%
Transportation Infrastructure
27,070
0.7
%
Metals & Mining
25,657
0.6
%
Health Care Technology
23,005
0.6
%
Air Freight & Logistics
20,758
0.5
%
Beverages
20,556
0.5
%
Ground Transportation
19,936
0.5
%
Health Care Equipment & Supplies
12,438
0.3
%
IT Services
9,326
0.2
%
Automobile Components
8,020
0.2
%
Oil, Gas & Consumable Fuels
5,248
0.1
%
Hotels, Restaurants & Leisure
1,358
0.0
%
Energy Equipment & Services
1,304
0.0
%
Textiles, Apparel & Luxury Goods
183
0.0
%
Total
$
4,071,008
100.0
%
The accompanying notes are an integral part of these consolidated financial statements.
39
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 June 30, 2026
(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 earnings before interest, taxes, depreciation, and amortization (“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 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.
40
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 June 30, 2026
(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”). These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes related thereto for the year ended December 31, 2025, included in the Company’s annual report on Form 10-K. 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 Jupiter Funding, LLC (“Jupiter Funding”), FBLC Funding I, LLC (“Funding I”), Kahala Aviation Holdings, LLC and 54th Street Equity Holdings, Inc. All intercompany balances and transactions have been eliminated in consolidation. Prior to December 31, 2025, the Company consolidated FBCC EEF Holdings LLC and on December 31, 2025, FBCC EEF Holdings LLC merged into 54th Street Equity Holdings, Inc. Prior to the liquidation of Kahala Aviation US, Inc. on December 22, 2025, in which the Company owned 100% of the equity, the Company consolidated this entity. 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.
41
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 June 30, 2026
(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:
•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;
•The independent valuation firm(s) conduct independent appraisals and make an independent assessment of the value of each investment; and
•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.
42
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 June 30, 2026
(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. Restricted cash also includes cash held as collateral for interest rate swaps. 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 six months ended June 30, 2026 and 2025, respectively, 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.
43
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 June 30, 2026
(Unaudited)
Interest Rate Swaps
The Company follows the guidance in ASC Topic 815, Derivatives and Hedging, when accounting for all derivative instruments and recognizes all derivative instruments as assets or liabilities at fair value. The Company designated a certain interest rate swap as a hedging instrument in a qualifying fair value hedge accounting relationship, and therefore the change in fair value of the hedging instrument and hedged item is recorded in interest expense and recognized as a component of interest and debt fees on the consolidated statements of operations. Depending on the nature of the balance at period end, the fair value of each interest rate swap is either included as a component of other liabilities or prepaid expenses and other assets on the Company’s consolidated statements of assets and liabilities. The change in fair value of the interest rate swaps is offset by a change in the carrying value of the fixed rate debt, and recognized within interest and debt fees on the consolidated statements of operations.
For all other interest rate swaps not designated as hedging instruments, the Company values such interest rate swaps at fair value with the changes in fair value included in net change in unrealized appreciation (depreciation) on derivatives on the consolidated statements of operations.
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. SeeNote 15 - Income Tax Information and Distributions to Stockholders 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.
44
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 June 30, 2026
(Unaudited)
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 the cash flows of a collateralized loan obligation (“CLO”) 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 arepayable 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.
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.
45
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 June 30, 2026
(Unaudited)
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. All penalties and interest associated with income taxes are included in income tax expense, if applicable. 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 for additional information.
Recent Accounting Pronouncements
In November 2025, the FASB issued ASU No. 2025-09, “Hedge Accounting Improvements.” This ASU better aligns hedge accounting with the entity's risk management activities. ASU 2025-09 amends the guidance in ASU 815, Derivatives and Hedging and refines certain hedge accounting requirements, including clarifications to the designation and documentation criteria for hedge relationships, improvements to the assessment of hedge effectiveness, and enhanced disclosures intended to provide greater transparency into an entity's risk management activities involving derivatives. ASU 2025-09 is effective for annual periods beginning after December 15, 2026, including interim periods within those annual periods, and early adoption is permitted. The Company does not expect the adoption of ASU 2025-09 to have a material impact on its consolidated 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:
•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.
•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.
•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.
46
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 June 30, 2026
(Unaudited)
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 June 30, 2026 and December 31, 2025, 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 June 30, 2026 and December 31, 2025 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.
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.
47
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 June 30, 2026
(Unaudited)
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.
The following table presents fair value measurements of investments, by major class, as of June 30, 2026, according to the fair value hierarchy:
Fair Value Measurements
Level 1
Level 2
Level 3
Measured at Net Asset Value (1)
Total
Senior Secured First Lien Debt
$
—
$
5,563
$
3,105,812
$
—
$
3,111,375
Senior Secured Second Lien Debt
—
53,902
97,785
—
151,687
Subordinated Debt
—
—
276,251
—
276,251
Collateralized Securities
—
—
3,898
—
3,898
Equity/Other
1
18,849
298,071
1,045
317,966
FBLC Senior Loan Fund, LLC
—
—
218,207
—
218,207
Total
$
1
$
78,314
$
4,000,024
$
1,045
$
4,079,384
(1) 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, 2025, according to the fair value hierarchy:
Fair Value Measurements
Level 1
Level 2
Level 3
Measured at Net Asset Value (1)
Total
Senior Secured First Lien Debt
$
—
$
15,371
$
3,121,003
$
—
$
3,136,374
Senior Secured Second Lien Debt
—
41,812
110,594
—
152,406
Subordinated Debt
—
—
259,132
—
259,132
Collateralized Securities
—
—
4,861
—
4,861
Equity/Other
123
14,632
277,511
1,013
293,279
FBLC Senior Loan Fund, LLC
—
—
224,956
—
224,956
Total
$
123
$
71,815
$
3,998,057
$
1,013
$
4,071,008
(1) 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.
48
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 June 30, 2026
(Unaudited)
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended June 30, 2026:
Senior Secured First Lien Debt
Senior Secured Second Lien Debt
Subordinated Debt
Collateralized Securities
Equity/Other (1)
Total
Balance as of March 31, 2026
$
3,051,735
$
101,855
$
285,017
$
4,098
$
511,305
$
3,954,010
Purchases and other adjustments to cost
92,880
4,789
27,442
15
3,445
128,571
Sales and repayments
(39,988)
(9,504)
(32,500)
(28)
(1,803)
(83,823)
Net realized gain (loss)
121
(1,274)
(9)
(204)
575
(791)
Transfers in
7,320
—
—
—
—
7,320
Net change in unrealized appreciation (depreciation) on investments
(6,256)
1,919
(3,699)
17
2,756
(5,263)
Balance as of June 30, 2026
$
3,105,812
$
97,785
$
276,251
$
3,898
$
516,278
$
4,000,024
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:
$
(5,913)
$
1,004
$
(3,699)
$
(144)
$
3,202
$
(5,550)
_______________
(1) Includes the Company’s investment in FBLC Senior Loan Fund, LLC.
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended June 30, 2026:
Senior Secured First Lien Debt
Senior Secured Second Lien Debt
Subordinated Debt
Collateralized Securities
Equity/Other (1)
Total
Balance as of January 1, 2026
$
3,121,003
$
110,594
$
259,132
$
4,861
$
502,467
$
3,998,057
Purchases and other adjustments to cost
250,642
56,611
55,515
33
5,468
368,269
Sales and repayments
(241,563)
(54,155)
(32,515)
(40)
(1,797)
(330,070)
Net realized gain (loss)
(33,822)
(4)
(9)
(204)
575
(33,464)
Transfers in
7,555
—
—
—
—
7,555
Transfers out
—
(16,600)
—
—
—
(16,600)
Net change in unrealized appreciation (depreciation) on investments
1,997
1,339
(5,872)
(752)
9,565
6,277
Balance as of June 30, 2026
$
3,105,812
$
97,785
$
276,251
$
3,898
$
516,278
$
4,000,024
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:
$
(33,668)
$
874
$
(5,872)
$
(916)
$
10,013
$
(29,569)
_______________
(1) Includes the Company’s investment in FBLC Senior Loan Fund, LLC.
For the three and six months ended June 30, 2026, 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 three and six months ended June 30, 2026, transfers from Level 3 to Level 2 were due to an increase in the number of observable market inputs.
49
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 June 30, 2026
(Unaudited)
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended June 30, 2025:
Senior Secured First Lien Debt
Senior Secured Second Lien Debt
Subordinated Debt
Collateralized Securities
Equity/Other (1)
Total
Balance as of March 31, 2025
$
2,985,186
$
92,885
$
220,889
$
7,486
$
553,774
$
3,860,220
Purchases and other adjustments to cost
336,787
1,954
18,301
24
—
357,066
Sales and repayments
(195,873)
4,608
(7,025)
(476)
4,900
(193,866)
Net realized gain (loss)
(11,542)
—
—
34
—
(11,508)
Transfers in
(14,617)
—
—
—
—
(14,617)
Net change in unrealized appreciation (depreciation) on investments
(1,166)
850
627
(504)
305
112
Balance as of June 30, 2025
$
3,098,775
$
100,297
$
232,792
$
6,564
$
558,979
$
3,997,407
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:
$
(13,168)
$
851
$
627
$
(505)
$
304
$
(11,891)
_______________
(1) Includes the Company's investment in FBLC Senior Loan Fund, LLC.
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended June 30, 2025:
Senior Secured First Lien Debt
Senior Secured Second Lien Debt
Subordinated Debt
Collateralized Securities
Equity/Other (1)
Total
Balance as of January 1, 2025
$
2,886,706
$
103,368
$
196,418
$
10,893
$
654,039
$
3,851,424
Purchases and other adjustments to cost
572,974
3,843
63,124
57
6,730
646,728
Sales and repayments
(393,520)
2,483
(26,729)
(2,949)
(95,084)
(515,799)
Net realized gain (loss)
(8,046)
—
—
172
(169)
(8,043)
Transfers in
51,211
—
—
—
—
51,211
Transfers out
—
(7,980)
—
—
—
(7,980)
Net change in unrealized appreciation (depreciation) on investments
(10,550)
(1,417)
(21)
(1,609)
(6,537)
(20,134)
Balance as of June 30, 2025
$
3,098,775
$
100,297
$
232,792
$
6,564
$
558,979
$
3,997,407
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:
$
(20,690)
$
(620)
$
(21)
$
(1,469)
$
(6,537)
$
(29,337)
_______________
(1) Includes the Company's investment in FBLC Senior Loan Fund, LLC.
For the three and six months ended June 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 three and six months ended June 30, 2025, transfers from Level 3 to Level 2 were due to an increase in the number of observable market inputs.
50
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 June 30, 2026
(Unaudited)
The composition of the Company’s investments as of June 30, 2026, 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
$
3,188,484
$
3,111,375
76.3
%
Senior Secured Second Lien Debt
159,318
151,687
3.7
Subordinated Debt
287,806
276,251
6.8
Collateralized Securities
7,432
3,898
0.1
Equity/Other
309,525
317,966
7.8
FBLC Senior Loan Fund, LLC
225,161
218,207
5.3
Total
$
4,177,726
$
4,079,384
100.0
%
The composition of the Company’s investments as of December 31, 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
$
3,215,223
$
3,136,374
77.1
%
Senior Secured Second Lien Debt
160,045
152,406
3.7
Subordinated Debt
264,813
259,132
6.4
Collateralized Securities
7,642
4,861
0.1
Equity/Other
305,470
293,279
7.2
FBLC Senior Loan Fund, LLC
225,161
224,956
5.5
Total
$
4,178,354
$
4,071,008
100.0
%
51
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 June 30, 2026
(Unaudited)
Significant Unobservable Inputs
The following table summarizes the significant unobservable inputs used to value the Level 3 investments as of June 30, 2026. The table is not intended to be all-inclusive, but instead identifies the significant unobservable inputs relevant to the determination of fair values.
Range
Asset Category
Fair Value
Primary Valuation Technique
Unobservable Inputs
Minimum
Maximum
Weighted Average (a)
Senior Secured First Lien Debt
$
2,861,199
Yield Analysis
Market Yield
0.00%
26.00%
10.11%
Senior Secured First Lien Debt
178,462
Waterfall Analysis
EBITDA Multiple
4.90x
17.34x
7.26x
Senior Secured First Lien Debt
33,792
Waterfall Analysis
Revenue Multiple
0.09x
0.90x
0.28x
Senior Secured First Lien Debt(c)
32,359
N/A
N/A
N/A
N/A
N/A
Senior Secured Second Lien Debt
54,897
Yield Analysis
Market Yield
9.15%
20.12%
11.09%
Senior Secured Second Lien Debt
38,793
Waterfall Analysis
EBITDA Multiple
6.75x
17.34x
10.54x
Senior Secured Second Lien Debt(b)(c)
4,095
N/A
N/A
N/A
N/A
N/A
Subordinated Debt
166,100
Waterfall Analysis
Tangible Net Asset Value Multiple
1.15x
1.45x
1.32x
Subordinated Debt
58,990
Waterfall Analysis
Market Yield
11.74%
11.74%
11.74%
Subordinated Debt
41,031
Yield Analysis
Market Yield
14.72%
19.05%
18.61%
Subordinated Debt
10,130
Waterfall Analysis
EBITDA Multiple
8.70x
10.75x
8.70x
Collateralized Securities
3,431
Yield Analysis
Discount Margin
16.70%
50.00%
18.47%
Collateralized Securities(b)(d)
467
Waterfall Analysis
Asset Recovery
$0.51
$0.51
$0.51
Equity/Other
224,143
Waterfall Analysis
Tangible Net Asset Value Multiple
1.15x
1.45x
1.34x
Equity/Other
20,874
Yield Analysis
Market Yield
4.00%
11.65%
7.68%
Equity/Other
20,100
Waterfall Analysis
EBITDA Multiple
2.26x
24.84x
14.48x
Equity/Other(b)
16,125
Waterfall Analysis
Market Yield
11.74%
11.74%
11.74%
Equity/Other
12,530
Waterfall Analysis
Revenue Multiple
0.18x
0.90x
0.32x
Equity/Other(b)
3,967
Waterfall Analysis
Adjusted BV Multiple
3.12x
3.12x
3.12x
Equity/Other(c)
332
N/A
N/A
N/A
N/A
N/A
FBLC Senior Loan Fund, LLC(b)
218,207
Discounted Cash Flow
Discount Rate
11.44%
11.44%
11.44%
Total
$
4,000,024
______________
(a) Weighted averages are calculated based on fair value of investments.
(b) This asset category contains one investment.
(c) Investment(s) were valued based on recent or pending transactions expected to close after the valuation date.
(d) Range and weighted average shown in millions.
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 June 30, 2026
(Unaudited)
There were no significant changes in valuation approach or technique as of June 30, 2026.
The following table summarizes the significant unobservable inputs used to value of the Level 3 investments as of December 31, 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
Asset Category
Fair Value
Primary Valuation Technique
Unobservable Inputs
Minimum
Maximum
Weighted Average (a)
Senior Secured First Lien Debt
$
2,970,031
Yield Analysis
Market Yield
0.00%
33.69%
10.25%
Senior Secured First Lien Debt (c)
96,537
N/A
N/A
N/A
N/A
N/A
Senior Secured First Lien Debt
32,285
Waterfall Analysis
EBITDA Multiple
3.83x
15.57x
8.44x
Senior Secured First Lien Debt
22,150
Waterfall Analysis
Revenue Multiple
0.19x
0.62x
0.30x
Senior Secured Second Lien Debt
55,631
Yield Analysis
Market Yield
11.40%
24.50%
13.26%
Senior Secured Second Lien Debt
37,695
Waterfall Analysis
EBITDA Multiple
6.86x
15.57x
10.43x
Senior Secured Second Lien Debt (b)(c)
16,600
N/A
N/A
N/A
N/A
N/A
Senior Secured Second Lien Debt (b)
668
Waterfall Analysis
Revenue Multiple
0.40x
0.40x
0.40x
Subordinated Debt
174,101
Waterfall Analysis
Tangible Net Asset Value Multiple
1.15x
1.56x
1.38x
Subordinated Debt (b)
41,466
Yield Analysis
Market Yield
14.27%
14.27%
14.27%
Subordinated Debt
33,911
Waterfall Analysis
Market Yield
10.25%
10.25%
10.25%
Subordinated Debt
9,654
Waterfall Analysis
EBITDA Multiple
9.83x
10.50x
9.83x
Collateralized Securities
4,322
Yield Analysis
Discount Margin
0.00%
16.90%
16.90%
Collateralized Securities (d)
539
Waterfall Analysis
Asset Price
$0.20
$0.49
$0.46
Equity/Other
205,980
Waterfall Analysis
Tangible Net Asset Value Multiple
1.15x
1.56x
1.41x
Equity/Other
26,748
Waterfall Analysis
EBITDA Multiple
2.58x
25.50x
12.51x
Equity/Other
20,310
Yield Analysis
Market Yield
11.59%
21.80%
16.75%
Equity/Other
12,528
Waterfall Analysis
Revenue Multiple
0.19x
1.20x
0.65x
Equity/Other (b)
10,330
Waterfall Analysis
Market Yield
10.25%
10.25%
10.25%
Equity/Other (b)
1,615
Waterfall Analysis
Adjusted BV Multiple
3.92x
3.92x
3.92x
Equity/Other (e)
—
N/A
N/A
N/A
N/A
N/A
FBLC Senior Loan Fund, LLC (b)
224,956
Discounted Cash Flow
Discount Rate
11.22%
11.22%
11.22%
Total
$
3,998,057
______________
(a) Weighted averages are calculated based on fair value of investments.
(b) This asset category contains one investment.
(c) Investment(s) were valued based on recent or pending transactions expected to close after the valuation date.
53
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 June 30, 2026
(Unaudited)
(d) Range and weighted average shown in millions.
(e) Represents investments in the Equity/Other asset category determined to be worthless as of the valuation date.
There were no significant changes in valuation approach or technique as of December 31, 2025.
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.
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 June 30, 2026 and December 31, 2025. 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, tangible book value (“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 June 30, 2026, the Company had eleven portfolio companies on non-accrual status with a total amortized cost of $112.7 million and fair value of $68.3 million, which represented 2.7% and 1.7% of the investment portfolio's total amortized cost and fair value, respectively. As of December 31, 2025, the Company had eight portfolio companies on non-accrual status with a total amortized cost of $100.3 million and fair value of $46.5 million, which represented 2.4% and 1.1% of the investment portfolio's total amortized cost and fair value, respectively. Refer to Note 2 - Summary of Significant Accounting Policies for additional details regarding the Company’s non-accrual policy.
54
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 June 30, 2026
(Unaudited)
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. On October 15, 2025, SLF distributed $80.0 million to the Company as a return of capital. As of June 30, 2026, 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 June 30, 2026, the Company’s investment in SLF consisted of equity contributions of $225.0 million. The Company’s 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 June 30, 2026 and December 31, 2025. A listing of the individual investments in SLF’s portfolio as of such dates can be found below:
June 30, 2026
December 31, 2025
Total assets
$
721,472
$
751,516
Total investments (1)
$
679,825
$
704,292
Weighted Average Current Yield for Total Portfolio (2)
8.0%
7.9%
Number of Portfolio companies in SLF
149
139
Largest portfolio company investment (1)
$
17,528
$
13,952
Total of five largest portfolio company investments (1)
$
64,733
$
62,136
————————
(1)At fair value.
(2)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 June 30, 2026:
June 30, 2026
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
AAdvantage Loyalty IP, Ltd. (f)
Passenger Airlines
S+ 2.25% (5.93%)
4/20/2028
$
3,970
$
3,969
$
3,963
1.5
%
Acrisure, LLC (b)
Insurance
S+ 3.25% (6.89%)
6/21/2032
5,130
5,091
4,622
1.8
%
ADMI Corp. (f)
Health Care Providers & Services
S+ 5.75% (9.39%)
12/23/2027
2,779
2,710
2,602
1.0
%
55
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 June 30, 2026
(Unaudited)
June 30, 2026
Portfolio Company
Industry
Investment Coupon Rate (a)
Maturity
Principal/Number of Shares
Amortized Cost
Fair Value
% of Members’ Capital (c)
Alera Group, Inc. (b)
Insurance
S+ 2.75% (6.39%)
5/31/2032
$
7,722
$
7,689
$
7,325
2.9
%
Allwyn Entertainment Financing US, LLC (b) (f)
Hotels, Restaurants & Leisure
S+ 2.50% (6.16%)
11/24/2032
6,983
6,853
6,886
2.7
%
American Auto Auction Group, LLC (f)
Commercial Services & Supplies
S+ 4.50% (8.23%)
5/28/2032
1,990
1,979
1,986
0.8
%
Arches Buyer, Inc. (b)
Media
S+ 3.25% (6.99%)
12/6/2027
5,883
5,824
5,860
2.3
%
Arcline FM Holdings, LLC (f)
Aerospace & Defense
S+ 2.75% (6.60%)
6/24/2030
4,950
4,941
4,963
1.9
%
Artera Services, LLC (b)
Construction & Engineering
S+ 4.50% (8.14%)
2/18/2031
5,492
5,465
4,843
1.9
%
Ascend Learning, LLC (f)
Diversified Consumer Services
S+ 3.00% (6.64%)
12/11/2028
3,955
3,948
3,852
1.5
%
Ascensus Group Holdings, Inc. (b) (f)
Financial Services
S+ 3.00% (6.64%)
11/25/2032
7,466
7,461
7,282
2.8
%
Athenahealth Group, Inc. (b)
Health Care Technology
S+ 3.25% (6.89%)
2/16/2032
7,905
7,847
7,814
3.1
%
Bond German BidCo 2 GmbH (f)
Chemicals
S+ 3.50% (7.24%)
5/6/2033
1,685
1,677
1,690
0.7
%
Beach Acquisition Bidco, LLC (f)
Textiles, Apparel & Luxury Goods
S+ 2.75% (6.39%)
9/13/2032
1,443
1,440
1,448
0.6
%
Bella Holding Co., LLC (f)
Health Care Providers & Services
S+ 3.25% (6.89%)
6/16/2033
8,000
7,921
7,920
3.1
%
Belron Finance 2019, LLC (b) (f)
Diversified Consumer Services
S+ 2.00% (5.66%)
10/16/2031
5,699
5,690
5,691
2.2
%
Blackhawk Network Holdings, Inc. (b)
Professional Services
S+ 3.50% (7.14%)
3/12/2029
4,901
4,856
4,873
1.9
%
Calcasieu Pass Funding, LLC (f)
Energy Equipment & Services
S+ 3.25% (6.95%)
4/11/2033
3,700
3,646
3,707
1.4
%
CD&R Hydra Buyer, Inc. (b) (f)
Industrial Conglomerates
S+ 4.00% (7.74%)
3/25/2031
8,148
8,122
8,150
3.2
%
Charter Communications Operating, LLC
Media
4.40%
12/1/2061
1,000
637
644
0.3
%
Cirque Du Soleil Holding USA Newco, Inc. (b) (f)
Entertainment
S+ 3.75% (7.48%)
3/8/2030
7,302
7,273
7,018
2.7
%
Citadel Securities Global Holdings, LLC (b)
Financial Services
S+ 2.00% (5.66%)
6/10/2033
4,400
4,400
4,389
1.7
%
Clarios Global, LP (b) (f)
Automobile Components
S+ 2.50% (6.14%)
1/28/2032
9,950
9,947
9,950
3.9
%
Clover Holding 2, LLC (b)
Software
S+ 3.75% (7.38%)
12/9/2031
5,198
5,157
4,955
1.9
%
Clydesdale Acquisition Holdings, Inc. (f)
Containers & Packaging
S+ 3.25% (6.89%)
4/1/2032
3,990
3,762
3,829
1.5
%
CNT Holdings I Corp. (b) (f)
Personal Care Products
S+ 2.50% (6.16%)
11/8/2032
6,001
6,002
6,003
2.3
%
Compass Power Generation, LLC (b)
Independent Power and Renewable Electricity Producers
S+ 2.50% (6.15%)
4/16/2029
6,183
6,123
6,178
2.4
%
Connectwise, LLC (b) (f)
Software
S+ 3.50% (7.49%)
9/29/2028
5,604
5,599
5,138
2.0
%
Corelogic, Inc. (b) (f)
Capital Markets
S+ 3.50% (7.26%)
6/2/2028
8,836
8,812
8,725
3.4
%
Coreweave Financing DDTL V, LLC (d) (f)
IT Services
S+ 4.50% (8.12%)
11/17/2031
479,468
466
506
0.2
%
Cotiviti, Inc. (b)
Health Care Providers & Services
S+ 2.75% (6.37%)
3/26/2032
4,703
4,662
4,262
1.7
%
Cotiviti, Inc. (b) (f)
Health Care Providers & Services
S+ 2.75% (6.37%)
5/1/2031
9,776
9,748
8,927
3.5
%
CQP Holdco, LP (b) (f)
Oil, Gas & Consumable Fuels
S+ 1.75% (5.48%)
12/31/2032
4,915
4,919
4,884
1.9
%
Crisis Prevention Institute, Inc. (b)
Diversified Consumer Services
S+ 4.00% (7.73%)
4/9/2031
2,290
2,282
2,267
0.9
%
Crown Finance US, Inc. (b)
Entertainment
S+ 4.50% (8.11%)
12/2/2031
4,925
4,887
4,931
1.9
%
Edelman Financial Engines Center, LLC (f)
Capital Markets
S+ 4.00% (7.64%)
11/28/2031
4,750
4,746
4,760
1.9
%
EIG Management Co., LLC (b)
Capital Markets
S+ 5.00% (8.64%)
5/17/2029
3,442
3,398
3,442
1.3
%
Emerald Borrower, LP (b) (f)
Machinery
S+ 2.25% (5.89%)
8/4/2031
2,282
2,279
2,279
0.9
%
Emma Buyer, LLC (d) (f)
Media
S+ 3.50%
7/14/2033
—
(2)
(1)
0.0
%
56
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 June 30, 2026
(Unaudited)
June 30, 2026
Portfolio Company
Industry
Investment Coupon Rate (a)
Maturity
Principal/Number of Shares
Amortized Cost
Fair Value
% of Members’ Capital (c)
Emma Buyer, LLC (d) (f)
Media
S+ 3.50%
7/14/2033
$
—
$
(1)
$
(1)
0.0
%
Emma Buyer, LLC (f)
Media
S+ 3.50% (7.23%)
7/14/2033
1,307
1,300
1,302
0.5
%
EMRLD Borrower, LP (f)
Machinery
S+ 2.25% (5.92%)
5/31/2030
1,861
1,859
1,859
0.7
%
Ensemble RCM, LLC (b) (f)
Health Care Providers & Services
S+ 3.00% (6.66%)
2/9/2033
13,000
12,989
12,945
5.0
%
Entain, PLC (f)
Hotels, Restaurants & Leisure
S+ 2.25% (5.98%)
7/30/2032
4,764
4,764
4,756
1.9
%
Entain, PLC (b) (f)
Hotels, Restaurants & Leisure
S+ 2.25% (5.98%)
10/31/2029
3,441
3,438
3,435
1.3
%
Epicor Software Corp. (b)
Software
S+ 2.75% (6.39%)
5/30/2031
6,039
6,014
5,760
2.3
%
Fiesta Purchaser, Inc. (f)
Food Products
S+ 2.75% (6.39%)
2/12/2031
3,990
3,936
3,909
1.5
%
FinThrive Software Intermediate Holdings, Inc. (b)
Health Care Technology
S+ 5.25% (8.95%)
12/15/2028
2,955
2,936
1,452
0.6
%
Fitness International, LLC (b) (f)
Hotels, Restaurants & Leisure
S+ 4.50% (8.14%)
2/12/2029
6,798
6,681
6,791
2.7
%
FNZ Group Entities, Ltd. (b)
Financial Services
S+ 5.00% (8.66%)
11/5/2031
2,953
2,910
2,327
0.9
%
Focus Financial Partners, LLC (f)
Capital Markets
S+ 2.50% (6.14%)
9/15/2031
4,414
4,409
4,302
1.7
%
Foresight Energy Operating, LLC (b)
Oil, Gas & Consumable Fuels
S+ 8.00% (11.83%)
6/30/2027
644
636
644
0.3
%
Freeport LNG Investments, LLLP (f)
Oil, Gas & Consumable Fuels
S+ 3.25% (6.93%)
2/11/2033
5,000
4,977
5,004
2.0
%
Gainwell Acquisition Corp. (f)
Health Care Technology
S+ 4.00% (7.83%)
10/1/2027
2,984
2,910
2,937
1.1
%
Geon Performance Solutions, LLC (b)
Chemicals
S+ 4.25% (8.24%)
8/18/2028
4,501
4,489
4,217
1.6
%
Geosyntec Consultants, Inc. (b) (f)
Professional Services
S+ 3.00% (6.64%)
7/31/2031
9,135
9,103
9,120
3.6
%
Global Medical Response, Inc. (b) (f)
Health Care Providers & Services
S+ 3.25% (6.89%)
10/1/2032
8,061
7,966
8,079
3.2
%
Golden State Foods, LLC (b)
Food Products
S+ 3.50% (7.23%)
12/4/2031
6,403
6,366
6,406
2.5
%
Graftech Global Enterprises, Inc. (f)
Electrical Equipment
S+ 6.00% (9.64%)
12/21/2029
1,091
1,048
1,042
0.4
%
Graftech Global Enterprises, Inc. (f)
Electrical Equipment
S+ 6.00% (9.67%)
12/21/2029
1,909
1,834
1,824
0.7
%
Gulfside Supply, Inc. (b) (f)
Building Products
S+ 3.00% (6.73%)
6/17/2031
4,407
4,407
3,699
1.4
%
HelpSystems Holdings, Inc. (b) (f)
Software
S+ 6.00% (9.77%)
5/21/2029
6,557
6,227
4,937
1.9
%
Hologic, Inc. (b) (f)
Health Care Equipment & Supplies
S+ 2.25% (6.00%)
4/7/2033
10,000
9,977
9,777
3.7
%
Hudson River Trading, LLC (b) (f)
Capital Markets
S+ 2.50% (6.14%)
3/18/2030
5,197
5,178
5,158
2.0
%
Hunter Douglas, Inc. (f)
Household Durables
S+ 3.00% (6.73%)
1/16/2032
4,461
4,450
4,452
1.7
%
Hyperion Refinance SARL (f)
Insurance
S+ 2.75% (6.39%)
4/18/2030
3,990
3,946
3,754
1.5
%
Icon Parent I, Inc. (b)
Software
S+ 2.75% (6.45%)
11/13/2031
4,950
4,933
4,621
1.8
%
IDERA, Inc. (f)
Software
S+ 3.50% (7.16%)
3/2/2028
4,924
4,926
3,797
1.5
%
Invenergy Thermal Operating I, LLC (b)
Independent Power and Renewable Electricity Producers
S+ 2.75% (6.38%)
5/17/2032
3,403
3,396
3,411
1.3
%
Invenergy Thermal Operating I, LLC (b)
Independent Power and Renewable Electricity Producers
S+ 2.75% (6.38%)
5/17/2032
225
225
225
0.1
%
ION Platform Finance US, Inc. (f)
Software
S+ 3.75% (7.48%)
10/7/2032
4,627
4,564
3,283
1.3
%
IXS Holdings, Inc. (f)
Automobiles
S+ 5.50% (9.16%)
9/5/2029
2,992
2,999
2,964
1.2
%
Jane Street Group, LLC (b) (f)
Financial Services
S+ 2.00% (5.67%)
12/15/2031
8,041
8,033
7,962
3.0
%
Jump Financial, LLC (b) (f)
Financial Services
S+ 3.50% (7.23%)
2/26/2032
7,195
7,139
7,186
2.8
%
Kaman Corp. (b) (d)
Aerospace & Defense
S+ 2.00%
2/26/2032
—
—
(1)
0.0
%
Kaman Corp. (b) (f)
Aerospace & Defense
S+ 2.00% (5.67%)
2/26/2032
4,074
4,072
4,065
1.6
%
Kaseya, Inc. (b)
Software
S+ 3.25% (6.91%)
3/22/2032
3,753
3,736
2,887
1.1
%
Kingpin Intermediate Holdings, LLC
Hotels, Restaurants & Leisure
7.25%
10/15/2032
5,000
4,902
4,248
1.7
%
Kingpin Intermediate Holdings, LLC (f)
Hotels, Restaurants & Leisure
S+ 3.25% (6.89%)
9/22/2032
6,914
6,867
6,000
2.3
%
57
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 June 30, 2026
(Unaudited)
June 30, 2026
Portfolio Company
Industry
Investment Coupon Rate (a)
Maturity
Principal/Number of Shares
Amortized Cost
Fair Value
% of Members’ Capital (c)
LBM Acquisition, LLC (f)
Building Products
S+ 3.75% (7.50%)
6/6/2031
$
3,431
$
2,969
$
2,867
1.1
%
Max US Bidco, Inc. (b)
Food Products
S+ 5.00% (8.73%)
10/3/2030
4,888
4,723
4,438
1.7
%
Merlin Buyer, Inc. (f)
diversified Consumer Services
S+ 4.00% (7.73%)
4/15/2033
2,500
2,488
2,503
1.0
%
Mermaid Bidco, Inc. (b) (f)
IT Services
S+ 3.25% (6.91%)
7/3/2031
7,424
7,410
7,177
2.8
%
MH Sub I, LLC (b) (f)
IT Services
S+ 4.25% (7.89%)
5/3/2028
5,340
5,227
5,184
2.0
%
Monogram Food Solutions, LLC (f)
Food Products
S+ 3.50% (7.26%)
8/28/2028
2,077
2,027
2,074
0.8
%
Multi-Color Corp.
Containers & Packaging
S+ 4.88% (8.52%) 2.50% PIK
5/11/2033
2,517
2,121
2,151
0.8
%
Nexus Buyer, LLC (b)
Capital Markets
S+ 3.50% (7.14%)
7/31/2031
4,937
4,921
4,750
1.9
%
Nouryon Finance B.V. (f)
Chemicals
S+ 3.25% (6.94%)
4/3/2028
2,192
2,184
2,191
0.9
%
Omnia Partners, LLC (f)
Commercial Services & Supplies
S+ 2.75% (6.42%)
12/31/2032
6,121
6,094
6,124
2.4
%
OneDigital Borrower, LLC (f)
Insurance
S+ 3.00% (6.64%)
7/2/2031
2,992
2,974
2,894
1.1
%
Peer Holding III B.V. (b)
Broadline Retail
S+ 2.50% (6.23%)
7/1/2031
5,910
5,910
5,917
2.3
%
Peraton Corp. (b)
Communications Equipment
S+ 3.75% (7.51%)
2/1/2028
1,995
1,794
1,795
0.7
%
PetSmart, LLC (f)
Specialty Retail
S+ 4.00% (7.65%)
8/18/2032
2,449
2,449
2,444
1.0
%
Pluto Acquisition I, Inc. (b)
Health Care Providers & Services
S+ 4.00% (7.65%)
9/20/2028
9,582
9,582
8,937
3.4
%
PODS, LLC (f)
Air Freight & Logistics
S+ 4.50% (8.13%)
5/14/2031
4,000
3,941
3,886
1.5
%
Pregis TopCo, LLC (b)
Containers & Packaging
S+ 3.75% (7.39%)
2/1/2029
6,628
6,619
6,643
2.6
%
Pretzel Parent, Inc. (b)
Entertainment
S+ 4.50% (8.14%)
10/1/2031
3,456
3,415
3,278
1.3
%
Primo Brands Corp. (f)
Beverages
S+ 2.75% (6.48%)
3/31/2031
6,118
6,090
6,144
2.4
%
ProAmpac PG Borrower, LLC (b)
Chemicals
S+ 4.00% (7.66%)
3/7/2033
7,061
6,958
6,931
2.7
%
Proofpoint, Inc. (b) (f)
Software
S+ 3.00% (6.73%)
8/31/2028
6,583
6,562
6,344
2.5
%
Pug, LLC (f)
Entertainment
S+ 4.75% (8.39%)
3/15/2030
4,952
4,930
4,978
1.9
%
Quikrete Holdings, Inc. (f)
Construction Materials
S+ 2.25% (5.89%)
4/14/2031
4,483
4,477
4,477
1.7
%
Quikrete Holdings, Inc. (b)
Construction Materials
S+ 2.25% (5.89%)
2/10/2032
2,518
2,514
2,515
1.0
%
Radiology Partners, Inc. (b)
Health Care Providers & Services
S+ 4.50% (8.23%)
6/30/2032
7,553
7,487
7,543
2.9
%
Raven Acquisition Holdings, LLC (b)
Health Care Providers & Services
S+ 3.00% (6.64%)
11/19/2031
9,678
9,626
9,542
3.7
%
Raven Acquisition Holdings, LLC (b) (d)
Health Care Providers & Services
S+ 3.00%
11/19/2031
—
(4)
(10)
0.0
%
RealTruck Group, Inc. (b)
Automobile Components
S+ 4.75% (8.65%)
1/31/2031
8,340
8,285
5,129
2.0
%
RealTruck Group, Inc. (b)
Automobile Components
S+ 6.00% (9.90%)
1/31/2031
4,432
4,380
2,751
1.1
%
RealTruck Group, Inc. (b)
Automobile Components
S+ 5.75% (9.39%)
1/31/2031
2,884
2,162
2,943
1.1
%
Recess Holdings, Inc. (b)
Household Durables
S+ 3.75% (7.42%)
2/21/2030
3,321
3,313
3,315
1.3
%
Red Planet Borrower, LLC (b)
Media
S+ 3.75% (7.39%)
9/8/2032
2,703
2,678
2,700
1.1
%
Renaissance Holdings Corp. (f)
Diversified Consumer Services
S+ 4.00% (7.66%)
4/5/2030
4,127
4,061
3,256
1.3
%
Rithum Holdings, Inc. (b)
Software
S+ 4.75% (8.48%)
7/21/2032
4,963
4,873
4,671
1.8
%
S&S Holdings, LLC (b)
Textiles, Apparel & Luxury Goods
S+ 5.00% (8.75%)
3/13/2028
4,648
4,604
4,590
1.8
%
Sedgwick Claims Management Services, Inc. (b) (f)
Health Care Providers & Services
S+ 2.50% (6.14%)
7/31/2031
7,182
7,172
7,088
2.8
%
Sotera Health Holdings, LLC (b)
Life Sciences Tools & Services
S+ 2.25% (5.89%)
5/30/2031
7,391
7,368
7,391
2.9
%
Specialty Building Products Holdings, LLC (b) (f)
Building Products
S+ 3.75% (7.49%)
10/16/2028
6,393
6,248
5,755
2.2
%
Staples, Inc. (f)
Specialty Retail
S+ 5.75% (9.41%)
9/4/2029
2,939
2,862
2,727
1.1
%
Starlight Parent, LLC (b)
Software
S+ 4.00% (7.67%)
4/16/2032
2,701
2,639
2,252
0.9
%
Stonepeak Nile Parent, LLC (b) (f)
Air Freight & Logistics
S+ 2.00% (5.66%)
4/9/2032
4,364
4,356
4,350
1.7
%
58
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 June 30, 2026
(Unaudited)
June 30, 2026
Portfolio Company
Industry
Investment Coupon Rate (a)
Maturity
Principal/Number of Shares
Amortized Cost
Fair Value
% of Members’ Capital (c)
Tamko Building Products, Inc. (f)
Building Products
S+ 3.00% (6.73%)
9/20/2030
$
1,360
$
1,353
$
1,358
0.5
%
Tecta America Corp. (b)
Construction & Engineering
S+ 2.50% (6.14%)
2/18/2032
5,441
5,432
5,443
2.1
%
The E.W. Scripps Company (f)
Media
S+ 5.75% (9.50%)
6/30/2028
2,668
2,687
2,658
1.0
%
TransDigm, Inc. (f)
Aerospace & Defense
S+ 2.50% (6.12%)
2/28/2031
3,880
3,875
3,881
1.5
%
Traverse Midstream Partners, LLC (b) (f)
Oil, Gas & Consumable Fuels
S+ 2.50% (6.16%)
2/16/2028
9,825
9,825
9,838
3.8
%
Traverse Midstream Partners, LLC (b) (f)
Oil, Gas & Consumable Fuels
S+ 2.25% (5.98%)
4/20/2033
7,699
7,680
7,690
3.0
%
UKG, Inc. (b) (f)
Software
S+ 2.25% (5.91%)
2/10/2031
9,589
9,540
9,012
3.5
%
University Support Services, LLC (b) (f)
Diversified Consumer Services
S+ 2.75% (6.37%)
2/12/2029
4,998
4,908
4,918
1.9
%
US Anesthesia Partners, Inc. (b) (f)
Health Care Providers & Services
S+ 4.00% (7.74%)
10/2/2028
6,878
6,687
6,881
2.7
%
Vaco Holdings, LLC (f)
Professional Services
S+ 5.00% (8.88%)
1/22/2029
549
452
447
0.2
%
VFH Parent, LLC (f)
Capital Markets
S+ 2.50% (6.14%)
6/23/2031
4,950
4,950
4,948
1.9
%
WCG Intermediate Corp. (b) (f)
Health Care Providers & Services
S+ 2.75% (6.39%)
2/25/2032
4,450
4,421
4,414
1.7
%
Western Dental Services, Inc.
Health Care Providers & Services
S+ 10.00% (13.67%) 7.50% PIK
1/28/2032
942
883
942
0.4
%
Western Dental Services, Inc. (d)
Health Care Providers & Services
S+ 10.00%
1/28/2032
—
—
—
—
%
WestJet Loyalty, LP (b)
Passenger Airlines
S+ 2.75% (6.48%)
2/14/2031
5,670
5,629
5,485
2.1
%
White Cap Supply Holdings, LLC (f)
Building Products
S+ 3.25% (6.89%)
10/19/2029
5,254
5,235
5,241
2.0
%
Wideopenwest Finance, LLC (f)
Media
S+ 3.00% (6.93%)
12/11/2028
2,992
2,762
2,716
1.1
%
Windsor Holdings III, LLC (f)
Chemicals
S+ 2.75% (6.39%)
8/1/2030
3,228
3,186
3,225
1.3
%
Zayo Group Holdings, Inc. (f)
Diversified Telecommunication Services
S+ 3.50% (6.76%) 0.50% PIK
3/11/2030
3,531
3,353
3,529
1.4
%
Subtotal Senior Secured First Lien Debt
$
646,114
$
624,359
243.30
%
Senior Secured Second Lien Debt
American Rock Salt Company, LLC
Chemicals
S+ 7.25% (11.24%)
6/11/2029
$
1,943
$
1,932
$
1,706
0.7
%
IDERA, Inc. (b) (e)
Software
S+ 6.75% (10.56%)
3/2/2029
1,036
1,031
622
0.2
%
Peraton Corp. (b)
Communications Equipment
S+ 7.75% (11.52%)
2/1/2029
7,750
6,441
5,181
2.0
%
Western Dental Holdings, LLC
Health Care Providers & Services
15.00% PIK
4/28/2032
2,056
2,056
2,057
0.8
%
Subtotal Senior Secured Second Lien Debt
$
11,460
$
9,566
3.70
%
Subordinated Debt
Resideo Funding, Inc.
Building Products
4.00%
9/1/2029
$
2,000
$
1,925
$
1,917
0.7
%
Subtotal Subordinated Debt
$
1,925
$
1,917
0.7
%
Collateralized Securities
Collateralized Securities - Debt Investments
AIG CLO, Ltd. 21-1A F
Capital Markets
S+ 6.90% (10.83%)
4/22/2034
$
1,410
$
1,317
$
1,320
0.5
%
Battalion CLO, Ltd. 21-17A F
Capital Markets
S+ 7.50% (11.44%)
3/9/2034
1,224
1,156
417
0.2
%
Carlyle GMS CLO, 16-3A FRR
Capital Markets
S+ 8.60% (12.54%)
7/20/2034
2,100
2,012
1,731
0.7
%
Eaton Vance CDO, Ltd. 15-1A FR
Capital Markets
S+ 7.97% (11.91%)
1/20/2030
2,000
1,856
227
0.1
%
59
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 June 30, 2026
(Unaudited)
June 30, 2026
Portfolio Company
Industry
Investment Coupon Rate (a)
Maturity
Principal/Number of Shares
Amortized Cost
Fair Value
% of Members’ Capital (c)
Greywolf CLO, Ltd. 20-3RA ER
Capital Markets
S+ 8.74% (12.67%)
4/22/2033
$
1,000
$
907
$
729
0.3
%
Highbridge Loan Management, Ltd. 11A-17 E
Capital Markets
S+ 6.10% (10.02%)
5/6/2030
3,000
2,831
2,201
0.9
%
KKR Financial CLO, Ltd. 15 FR
Capital Markets
S+ 8.50% (12.44%)
1/18/2032
2,000
1,928
697
0.3
%
LCM, Ltd. Partnership 16A ER2
Capital Markets
S+ 6.38% (10.32%)
10/15/2031
2,500
2,361
1,635
0.6
%
Saranac CLO, Ltd. 20-8A E
Capital Markets
S+ 8.12% (12.02%)
2/20/2033
1,455
1,446
618
0.2
%
Sound Point CLO, Ltd. 17-2A E
Capital Markets
S+ 6.10% (10.03%)
7/25/2030
2,401
2,211
1,494
0.6
%
Sound Point CLO, Ltd. 18-3A D
Capital Markets
S+ 5.79% (9.72%)
10/26/2031
1,025
962
605
0.2
%
Symphony CLO, Ltd. 2012-9A ER2
Capital Markets
S+ 6.95% (10.89%)
7/16/2032
3,000
2,845
2,478
1.0
%
Venture CLO 43, Ltd. 21-43A E
Capital Markets
S+ 7.15% (11.09%)
4/15/2034
3,000
2,937
1,724
0.7
%
Wind River CLO, Ltd. 14-2A FR
Capital Markets
S+ 7.87% (11.81%)
1/15/2031
3,000
2,687
100
0.0
%
Subtotal Collateralized Securities
$
27,456
$
15,976
6.3
%
Equity/Other
Bond US Bidco 1, Inc.
Chemicals
7.13%
6/15/2033
500
$
500
$
504
0.2
%
Gordian Medical, Inc.
Health Care Providers & Services
414,532
7,448
7,316
2.9
%
Gordian Medical, Inc.
Health Care Providers & Services
392,171
—
—
—
%
Multi-Color Corp.
Containers & Packaging
483
46
44
0.0
%
Multi-Color Corp.
Containers & Packaging
839
699
688
0.3
%
Multi-Color Corp.
Containers & Packaging
776
6
2
0.0
%
PG&E Corp.
Electric Utilities
6.00%
12/1/2027
229,550
10,683
9,496
3.7
%
PODS, LLC
Air Freight & Logistics
8.75%
5/15/2031
3,000
3,000
2,926
1.1
%
Resolute Investment Managers, Inc.
Capital Markets
30,370
1,286
55
0.0
%
Rithm Capital Corp.
Mortgage Real Estate Investment Trusts (REITs)
8.50%
6/1/2031
3,000
3,000
3,009
1.2
%
Univision Communications
Media
8.88%
4/15/2033
2,670
2,670
2,627
1.0
%
Western Dental Holdings, LLC
Health Care Providers & Services
11,676
1,340
1,340
0.5
%
Subtotal Equity/Other
$
30,678
$
28,007
10.9
%
TOTAL INVESTMENTS
$
717,633
$
679,825
264.9
%
(a) 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 resets 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 June 30, 2026. 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) 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) Percentages are based on SLF members’ capital as of June 30, 2026.
(d) SLF has various unfunded commitments to portfolio companies.
(e) SLF’s investment or a portion thereof is held through a total return swap agreement with J.P. Morgan.
(f) 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 $2.7 million of unfunded commitments to portfolio companies as of June 30, 2026.
60
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 June 30, 2026
(Unaudited)
Below is a listing of SLF’s individual investments as of December 31, 2025:
December 31, 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
AAdvantage Loyalty IP, Ltd. (f)
Passenger Airlines
S+ 2.25% (6.13%)
4/20/2028
$
3,990
$
3,987
$
3,997
1.4
%
Acrisure, LLC (b)
Insurance
S+ 3.25% (6.97%)
6/21/2032
5,156
5,114
5,154
1.9
%
ADMI Corp. (f)
Health Care Providers & Services
S+ 5.75% (9.47%)
12/23/2027
2,793
2,702
2,669
1.0
%
Adtalem Global Education, Inc. (f)
Diversified Consumer Services
S+ 2.75% (6.47%)
8/14/2028
238
238
238
0.1
%
Alera Group, Inc. (b)
Insurance
S+ 3.25% (6.97%)
5/31/2032
7,761
7,724
7,794
2.8
%
Allwyn Entertainment Financing US, LLC (b) (f)
Hotels, Restaurants & Leisure
S+ 2.50% (6.17%)
11/24/2032
7,000
6,860
6,860
2.5
%
ARC Falcon I, Inc. (f)
Chemicals
S+ 3.50% (7.32%)
10/2/2028
4,961
4,967
4,955
1.8
%
Arches Buyer, Inc. (b)
Media
S+ 3.25% (7.07%)
12/6/2027
5,914
5,834
5,923
2.1
%
Arcline FM Holdings, LLC (f)
Aerospace & Defense
S+ 2.75% (6.42%)
6/24/2030
4,975
4,964
4,989
1.8
%
Artera Services, LLC (b)
Construction & Engineering
S+ 4.50% (8.17%)
2/18/2031
5,520
5,489
4,440
1.6
%
Ascend Learning, LLC (f)
Diversified Consumer Services
S+ 3.00% (6.72%)
12/11/2028
3,975
3,966
3,984
1.4
%
Ascensus Group Holdings, Inc. (b) (f)
Financial Services
S+ 3.00% (6.72%)
11/25/2032
7,485
7,479
7,472
2.7
%
Athenahealth Group, Inc. (b)
Health Care Technology
S+ 2.75% (6.47%)
2/15/2029
9,925
9,815
9,935
3.6
%
Athletico Management, LLC (f)
Health Care Providers & Services
S+ 4.25% (8.19%)
2/15/2029
4,825
4,812
3,577
1.3
%
Avalara, Inc. (f)
Software
S+ 2.75% (6.42%)
3/26/2032
5,970
5,942
5,992
2.2
%
Beach Acquisition Bidco, LLC (f)
Textiles, Apparel & luxury goods
S+ 3.25% (6.92%)
9/13/2032
1,450
1,447
1,460
0.5
%
Bella Holding Co., LLC (b)
Health Care Providers & Services
S+ 3.00% (6.72%)
5/10/2028
8,026
8,006
8,047
2.9
%
Belron Finance 2019, LLC (b) (f)
Diversified Consumer Services
S+ 2.25% (6.12%)
10/16/2031
5,728
5,716
5,756
2.1
%
Blackhawk Network Holdings, Inc. (b)
Professional Services
S+ 4.00% (7.67%)
3/12/2029
4,925
4,872
4,944
1.8
%
Blackstone CQP Holdco, LP (b) (f)
Oil, Gas & Consumable Fuels
S+ 2.00% (5.67%)
12/31/2030
4,915
4,919
4,929
1.8
%
CD&R Hydra Buyer, Inc. (b)
Industrial Conglomerates
S+ 4.00% (7.82%)
3/25/2031
6,190
6,165
6,182
2.2
%
Cirque Du Soleil Holding USA Newco, Inc. (b) (f)
Entertainment
S+ 3.75% (7.42%)
3/8/2030
7,339
7,306
6,756
2.4
%
Citadel Securities, LP (b)
Financial Services
S+ 2.00% (5.67%)
10/31/2031
4,411
4,410
4,432
1.6
%
Clarios Global, LP (b) (f)
Automobile Components
S+ 2.75% (6.47%)
1/28/2032
9,975
9,968
10,012
3.6
%
Clover Holding 2, LLC (b)
Software
S+ 3.75% (7.52%)
12/9/2031
5,224
5,178
5,219
1.9
%
CNT Holdings I Corp. (b) (f)
Personal Care Products
S+ 2.50% (6.34%)
11/8/2032
6,031
6,033
6,043
2.2
%
Compass Power Generation, LLC (b)
Independent Power and Renewable Electricity Producers
S+ 3.25% (6.97%)
4/16/2029
6,430
6,356
6,467
2.3
%
Connectwise, LLC (b) (f)
Software
S+ 3.50% (7.43%)
9/29/2028
10,633
10,618
10,427
3.7
%
Conservice Midco, LLC (b) (f)
Diversified Consumer Services
S+ 2.75% (6.47%)
5/13/2030
5,418
5,418
5,423
2.0
%
Corelogic, Inc. (b) (f)
IT Services
S+ 3.50% (7.33%)
6/2/2028
8,882
8,851
8,879
3.2
%
Cornerstone Building Brands, Inc. (b) (f)
Building Products
S+ 5.63% (9.38%)
8/1/2028
3,564
3,583
2,798
1.0
%
Cotiviti, Inc. (b)
Health Care Providers & Services
S+ 2.75% (6.62%)
3/26/2032
4,726
4,682
4,528
1.6
%
Cotiviti, Inc. (b) (f)
Health Care Providers & Services
S+ 2.75% (6.62%)
5/1/2031
9,826
9,791
9,424
3.4
%
Crisis Prevention Institute, Inc. (b)
Diversified Consumer Services
S+ 4.00% (7.67%)
4/9/2031
2,310
2,301
2,290
0.8
%
Crown Finance US, Inc. (b)
Entertainment
S+ 4.50% (8.34%)
12/2/2031
4,950
4,908
4,873
1.8
%
61
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 June 30, 2026
(Unaudited)
December 31, 2025
Portfolio Company
Industry
Investment Coupon Rate (a)
Maturity
Principal/Number of Shares
Amortized Cost
Fair Value
% of Members’ Capital (c)
Directv Financing, LLC (b)
Media
S+ 5.00% (9.10%)
8/2/2027
$
196
$
195
$
196
0.1
%
EIG Management Co., LLC (b)
Capital Markets
S+ 5.00% (8.72%)
5/17/2029
3,442
3,391
3,442
1.2
%
Emerald Borrower, LP (b) (f)
Machinery
S+ 2.25% (6.12%)
8/4/2031
2,294
2,290
2,297
0.8
%
Ensemble RCM, LLC (b) (f)
Health Care Providers & Services
S+ 3.00% (6.84%)
8/1/2029
13,311
13,238
13,368
4.7
%
Entain, PLC (f)
Hotels, Restaurants & Leisure
S+ 2.25% (5.92%)
7/30/2032
4,788
4,788
4,747
1.7
%
Entain, PLC (b) (f)
Hotels, Restaurants & Leisure
S+ 2.25% (5.92%)
10/31/2029
3,459
3,454
3,435
1.2
%
Epicor Software Corp. (b)
Software
S+ 2.50% (6.22%)
5/30/2031
6,070
6,041
6,086
2.2
%
FinThrive Software Intermediate Holdings, Inc. (b)
Health Care Technology
S+ 5.25% (8.95%)
12/15/2028
2,970
2,947
2,732
1.0
%
Fitness International, LLC (b) (f)
Hotels, Restaurants & Leisure
S+ 4.50% (8.22%)
2/12/2029
6,833
6,694
6,839
2.5
%
FNZ Group Entities, Ltd. (b)
Financial Services
S+ 5.00% (8.90%)
11/5/2031
2,968
2,920
2,330
0.8
%
Focus Financial Partners, LLC (f)
Capital Markets
S+ 2.50% (6.22%)
9/15/2031
4,436
4,430
4,443
1.6
%
Foresight Energy Operating, LLC (b)
Oil, Gas & Consumable Fuels
S+ 8.00% (11.77%)
6/30/2027
648
637
648
0.2
%
Freeport LNG Investments, LLLP (f)
Oil, Gas & Consumable Fuels
S+ 3.00% (7.15%)
11/17/2026
4,818
4,805
4,820
1.7
%
Galaxy US OpCo, Inc. (f)
Professional Services
S+ 5.75% (9.59%) 3.75% PIK
7/31/2030
2,326
2,094
2,229
0.8
%
Geon Performance Solutions, LLC (b)
Chemicals
S+ 4.25% (8.18%)
8/18/2028
4,523
4,506
3,555
1.3
%
Geosyntec Consultants, Inc. (b) (f)
Professional Services
S+ 3.00% (6.72%)
7/31/2031
9,181
9,144
9,227
3.3
%
Global Medical Response, Inc. (b) (f)
Health Care Providers & Services
S+ 3.50% (7.38%)
10/1/2032
9,966
9,839
10,022
3.5
%
Golden State Foods, LLC (b)
Food Products
S+ 4.00% (8.00%)
12/4/2031
6,419
6,379
6,450
2.3
%
Gulfside Supply, Inc. (b) (f)
Building Products
S+ 3.00% (6.67%)
6/17/2031
4,444
4,444
4,375
1.6
%
Hamilton Projects Acquiror, LLC (f)
Independent Power and Renewable Electricity Producers
S+ 2.50% (6.22%)
5/30/2031
6,580
6,568
6,617
2.4
%
HelpSystems Holdings, Inc. (b)
Software
S+ 6.00% (9.97%)
5/21/2029
4,590
4,333
4,139
1.5
%
Hudson River Trading, LLC (b) (f)
Capital Markets
S+ 2.75% (6.49%)
3/18/2030
5,224
5,201
5,243
1.9
%
Hunter Douglas, Inc. (f)
Household Durables
S+ 3.00% (6.67%)
1/16/2032
4,484
4,471
4,500
1.6
%
Icon Parent I, Inc. (b)
Software
S+ 2.75% (6.45%)
11/13/2031
4,975
4,956
4,981
1.8
%
IDERA, Inc. (f)
Software
S+ 3.50% (7.35%)
3/2/2028
4,950
4,952
4,602
1.7
%
Invenergy Thermal Operating I, LLC (b)
Independent Power and Renewable Electricity Producers
S+ 2.75% (6.41%)
5/17/2032
3,567
3,559
3,578
1.3
%
Invenergy Thermal Operating I, LLC (b)
Independent Power and Renewable Electricity Producers
S+ 2.75% (6.41%)
5/17/2032
225
224
226
0.1
%
ION Platform Finance US, Inc. (f)
Software
S+ 3.75% (7.42%)
9/30/2032
4,063
4,022
3,803
1.4
%
Jane Street Group, LLC (b) (f)
Financial Services
S+ 2.00% (5.82%)
12/15/2031
8,084
8,075
8,040
2.9
%
Jump Financial, LLC (b) (f)
Financial Services
S+ 3.50% (7.17%)
2/26/2032
7,232
7,169
7,124
2.6
%
Kaman Corp. (b) (d)
Aerospace & Defense
S+ 2.50% (6.43%)
2/26/2032
56
55
58
—
%
Kaman Corp. (b) (f)
Aerospace & Defense
S+ 2.50% (6.32%)
2/26/2032
6,199
6,193
6,220
2.2
%
Kaseya, Inc. (b)
Software
S+ 3.00% (6.72%)
3/22/2032
3,772
3,754
3,772
1.4
%
Kingpin Intermediate Holdings, LLC
Hotels, Restaurants & Leisure
7.25%
10/15/2032
5,000
4,896
4,733
1.7
%
Kingpin Intermediate Holdings, LLC (f)
Hotels, Restaurants & Leisure
S+ 3.25% (6.97%)
9/22/2032
7,500
7,445
7,331
2.6
%
Kodiak Building Partners, LLC (f)
Building Products
S+ 3.75% (7.47%)
12/4/2031
4,000
3,836
3,896
1.4
%
LABL, Inc. (b)
Containers & Packaging
S+ 5.00% (8.94%)
10/30/2028
4,910
4,871
3,093
1.1
%
Max US Bidco, Inc. (b)
Food Products
S+ 5.00% (8.67%)
10/3/2030
4,912
4,730
3,755
1.4
%
Merlin Buyer, Inc. (f)
Machinery
S+ 4.00% (7.67%)
12/13/2028
1,108
1,106
1,118
0.4
%
Mermaid Bidco Inc (b) (f)
IT Services
S+ 3.25% (7.15%)
7/3/2031
7,462
7,444
7,481
2.7
%
62
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 June 30, 2026
(Unaudited)
December 31, 2025
Portfolio Company
Industry
Investment Coupon Rate (a)
Maturity
Principal/Number of Shares
Amortized Cost
Fair Value
% of Members’ Capital (c)
MH Sub I, LLC (b) (f)
IT Services
S+ 4.25% (7.97%)
5/3/2028
$
5,367
$
5,225
$
4,978
1.8
%
Monogram Food Solutions, LLC (f)
Food Products
S+ 4.00% (7.83%)
8/28/2028
2,088
2,027
2,088
0.8
%
Nexus Buyer, LLC (b)
Capital Markets
S+ 3.50% (7.22%)
7/31/2031
4,962
4,944
4,889
1.8
%
Nouryon Finance B.V. (f)
Chemicals
S+ 3.25% (7.04%)
4/3/2028
2,204
2,192
2,202
0.8
%
Omnia Partners, LLC (f)
Commercial Services & Supplies
S+ 2.75% (6.46%)
12/31/2032
6,152
6,121
6,171
2.2
%
Peer Holding III B.V. (b)
Broadline Retail
S+ 2.50% (6.17%)
7/1/2031
5,940
5,940
5,961
2.1
%
PetSmart, LLC (f)
Specialty Retail
S+ 4.00% (7.73%)
8/18/2032
2,455
2,455
2,442
0.9
%
Pluto Acquisition I, Inc. (b)
Health Care Providers & Services
S+ 4.00% (7.87%)
9/20/2028
9,630
9,631
7,984
2.9
%
PODS, LLC (b) (f)
Air Freight & Logistics
S+ 3.00% (6.83%)
3/31/2028
7,438
7,133
7,343
2.6
%
Pregis TopCo, LLC (b)
Containers & Packaging
S+ 4.00% (7.72%)
2/1/2029
6,661
6,648
6,712
2.4
%
Pretzel Parent, Inc. (b)
Entertainment
S+ 4.50% (8.22%)
10/1/2031
3,474
3,428
3,426
1.2
%
Proofpoint, Inc. (b) (f)
Software
S+ 3.00% (6.92%)
8/31/2028
6,616
6,591
6,644
2.4
%
Pug, LLC (f)
Entertainment
S+ 4.75% (8.47%)
3/15/2030
2,500
2,471
2,474
0.9
%
Quikrete Holdings, Inc. (f)
Construction Materials
S+ 2.25% (5.97%)
4/14/2031
4,506
4,499
4,517
1.6
%
Quikrete Holdings, Inc. (b)
Construction Materials
S+ 2.25% (5.97%)
2/10/2032
2,531
2,525
2,538
0.9
%
Radiology Partners, Inc. (b)
Health Care Providers & Services
S+ 4.50% (8.17%)
6/30/2032
7,591
7,518
7,570
2.7
%
Raven Acquisition Holdings, LLC (b)
Health Care Providers & Services
S+ 3.00% (6.72%)
11/19/2031
9,727
9,670
9,754
3.5
%
Raven Acquisition Holdings, LLC (b) (d)
Health Care Providers & Services
S+ 3.00%
11/19/2031
—
(4)
2
0.0
%
Recess Holdings, Inc. (b)
Household Durables
S+ 3.75% (7.62%)
2/21/2030
5,343
5,312
5,373
1.9
%
Red Planet Borrower, LLC (b)
Media
S+ 4.00% (7.72%)
9/8/2032
7,499
7,427
7,506
2.7
%
Renaissance Holdings Corp. (f)
Diversified Consumer Services
S+ 4.00% (7.72%)
4/5/2030
4,148
4,073
3,613
1.3
%
Rithum Holdings, Inc. (b)
Software
S+ 4.75% (8.42%)
7/21/2032
4,988
4,891
4,977
1.8
%
Roper Industrial Products Investment Co., LLC (f)
Industrial Conglomerates
S+ 2.75% (6.42%)
11/22/2029
4,947
4,877
4,973
1.8
%
S&S Holdings, LLC (b)
Textiles, Apparel & luxury goods
S+ 5.00% (8.83%)
3/13/2028
4,673
4,615
4,668
1.7
%
Sedgwick Claims Management Services, Inc. (b) (f)
Health Care Providers & Services
S+ 2.50% (6.22%)
7/31/2031
7,218
7,205
7,239
2.6
%
Sharp Services, LLC (f)
Health Care Providers & Services
S+ 3.00% (6.67%)
9/29/2032
3,016
3,001
3,023
1.1
%
Sonrava Health Holdings, LLC
Health Care Providers & Services
P+ 7.50% (14.25%)
5/18/2028
1,847
1,663
1,754
0.6
%
Sonrava Health Holdings, LLC
Health Care Providers & Services
P+ 7.50% (14.25%) 5.50% PIK
8/18/2028
10,782
10,463
1,617
0.6
%
Sonrava Health Holdings, LLC
Health Care Providers & Services
S+ 10.00% (13.77%) 2.50% PIK
6/3/2026
311
311
311
0.1
%
Sotera Health Holdings, LLC (b)
Life Sciences Tools & Services
S+ 2.50% (6.34%)
5/30/2031
7,410
7,382
7,442
2.7
%
Specialty Building Products Holdings, LLC (b)
Building Products
S+ 3.75% (7.57%)
10/16/2028
4,926
4,823
4,583
1.7
%
Staples, Inc. (f)
Specialty Retail
S+ 5.75% (9.60%)
9/4/2029
2,955
2,866
2,799
1.0
%
Starlight Parent, LLC (b)
Software
S+ 4.00% (7.70%)
4/16/2032
5,486
5,334
5,472
2.0
%
Stonepeak Nile Parent, LLC (b) (f)
Air Freight & Logistics
S+ 2.25% (6.16%)
4/9/2032
4,375
4,365
4,373
1.6
%
Tecta America Corp. (b)
Construction & Engineering
S+ 2.75% (6.47%)
2/18/2032
5,468
5,458
5,485
2.0
%
TransDigm, Inc. (f)
Aerospace & Defense
S+ 2.50% (6.22%)
2/28/2031
3,900
3,894
3,914
1.4
%
Traverse Midstream Partners, LLC (b) (f)
Oil, Gas & Consumable Fuels
S+ 2.50% (6.34%)
2/16/2028
9,849
9,847
9,859
3.6
%
Triton Water Holdings, Inc. (b) (f)
Beverages
S+ 2.25% (5.92%)
3/31/2028
7,384
7,365
7,402
2.7
%
Truck Hero, Inc. (b) (f)
Automobile Components
S+ 5.00% (8.83%)
1/31/2028
4,444
4,378
3,428
1.2
%
63
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 June 30, 2026
(Unaudited)
December 31, 2025
Portfolio Company
Industry
Investment Coupon Rate (a)
Maturity
Principal/Number of Shares
Amortized Cost
Fair Value
% of Members’ Capital (c)
Truck Hero, Inc. (b) (f)
Automobile Components
S+ 3.75% (7.58%)
1/31/2028
$
8,362
$
8,295
$
6,391
2.3
%
UKG, Inc. (b) (f)
Software
S+ 2.50% (6.34%)
2/10/2031
9,638
9,581
9,642
3.5
%
United Airlines, Inc. (b)
Passenger Airlines
S+ 2.00% (5.73%)
2/24/2031
3,710
3,697
3,722
1.3
%
University Support Services, LLC (b) (f)
Diversified Consumer Services
S+ 2.75% (6.47%)
2/12/2029
4,025
3,974
3,882
1.4
%
US Anesthesia Partners, Inc. (b) (f)
Health Care Providers & Services
S+ 4.00% (7.99%)
10/2/2028
6,913
6,682
6,938
2.5
%
VFH Parent, LLC (f)
Capital Markets
S+ 2.50% (6.22%)
6/23/2031
5,000
5,000
5,010
1.8
%
Victory Buyer, LLC (b)
Building Products
S+ 3.75% (7.58%)
11/20/2028
7,349
7,182
7,375
2.7
%
WCG Purchaser Corp. (b)
Health Care Providers & Services
S+ 3.00% (6.72%)
2/25/2032
4,473
4,453
4,479
1.6
%
WestJet Loyalty, LP (b)
Passenger Airlines
S+ 3.25% (6.92%)
2/14/2031
5,699
5,653
5,718
2.1
%
White Cap Supply Holdings, LLC (f)
Building Products
S+ 3.25% (6.97%)
10/19/2029
5,280
5,258
5,301
1.9
%
Windsor Holdings III, LLC (f)
Chemicals
S+ 2.75% (6.47%)
8/1/2030
3,245
3,197
3,249
1.2
%
X Corp. (b)
Interactive Media & Services
S+ 6.50% (10.45%)
10/26/2029
4,949
4,923
4,857
1.7
%
X Corp. (b) (f)
Interactive Media & Services
9.50%
10/26/2029
7,500
7,430
7,468
2.7
%
Zayo Group Holdings, Inc. (f)
Diversified Telecommunication Services
S+ 3.50% (6.83%) 0.50% PIK
3/11/2030
4,482
4,205
4,242
1.5
%
Subtotal Senior Secured First Lien Debt
$
668,611
$
648,199
233.4
%
Senior Secured Second Lien Debt
American Rock Salt Company, LLC
Chemicals
S+ 7.25% (11.33%)
6/11/2029
$
1,943
$
1,930
$
1,570
0.6
%
Edelman Financial Center, LLC (f)
Capital Markets
S+ 5.25% (8.97%)
10/6/2028
4,750
4,743
4,734
1.7
%
IDERA, Inc. (b) (e)
Software
S+ 6.75% (10.75%)
3/2/2029
1,036
1,031
933
0.3
%
Neptune Bidco US, Inc. (f)
Interactive Media & Services
S+ 9.75% (13.76%)
10/11/2029
579
568
579
0.2
%
Peraton Corp. (b)
Communications Equipment
S+ 7.75% (11.67%)
2/1/2029
9,750
7,882
7,636
2.8
%
Subtotal Senior Secured Second Lien Debt
$
16,154
$
15,452
5.6
%
Subordinated Debt
Resideo Funding, Inc.
Building Products
4.00%
9/1/2029
$
2,000
$
1,915
$
1,934
0.7
%
Subtotal Subordinated Debt
$
1,915
$
1,934
0.7
%
Collateralized Securities
`
Collateralized Securities - Debt Investments
AIG CLO, Ltd. 21-1A F
Capital Markets
S+ 6.90% (11.02%)
4/22/2034
$
1,410
$
1,313
$
1,320
0.5
%
Battalion CLO, Ltd. 21-17A F
Capital Markets
S+ 7.50% (11.65%)
3/9/2034
1,224
1,153
570
0.2
%
Carlyle GMS CLO, 16-3A FRR
Capital Markets
S+ 8.60% (12.75%)
7/20/2034
2,100
2,008
1,823
0.7
%
Eaton Vance CDO, Ltd. 15-1A FR
Capital Markets
S+ 7.97% (12.12%)
1/20/2030
2,000
1,839
846
0.3
%
Greywolf CLO, Ltd. 20-3RA ER
Capital Markets
S+ 8.74% (12.86%)
4/22/2033
1,000
902
916
0.3
%
Highbridge Loan Management, Ltd. 11A-17 E
Capital Markets
S+ 6.10% (10.25%)
5/6/2030
3,000
2,812
2,592
0.9
%
KKR Financial CLO, Ltd. 15 FR
Capital Markets
S+ 8.50% (12.65%)
1/18/2032
2,000
1,923
1,795
0.6
%
LCM, Ltd. Partnership 16A ER2
Capital Markets
S+ 6.38% (10.55%)
10/15/2031
2,500
2,350
1,807
0.7
%
Saranac CLO, Ltd. 20-8A E
Capital Markets
S+ 8.12% (12.27%)
2/20/2033
1,455
1,445
1,095
0.4
%
Sound Point CLO, Ltd. 17-2A E
Capital Markets
S+ 6.10% (10.22%)
7/25/2030
2,400
2,190
1,820
0.7
%
Sound Point CLO, Ltd. 18-3A D
Capital Markets
S+ 5.79% (9.91%)
10/26/2031
1,000
931
819
0.3
%
64
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 June 30, 2026
(Unaudited)
December 31, 2025
Portfolio Company
Industry
Investment Coupon Rate (a)
Maturity
Principal/Number of Shares
Amortized Cost
Fair Value
% of Members’ Capital (c)
Symphony CLO, Ltd. 2012-9A ER2
Capital Markets
S+ 6.95% (11.11%)
7/16/2032
$
3,000
$
2,834
$
2,779
1.0
%
Venture CLO 43, Ltd. 21-43A E
Capital Markets
S+ 7.15% (11.32%)
4/15/2034
3,000
2,933
2,715
1.0
%
Wind River CLO, Ltd. 14-2A FR
Capital Markets
S+ 7.87% (12.04%)
1/15/2031
3,000
2,660
91
0.0
%
Subtotal Collateralized Securities
$
27,293
$
20,988
7.6
%
Equity/Other
Gordian Medical, Inc.
Health Care Providers & Services
414,532
$
7,448
$
7,316
2.6
%
Gordian Medical, Inc.
Health Care Providers & Services
392,171
—
—
—
%
PG&E Corp.
Electric Utilities
6.00%
12/1/2027
229,550
10,683
9,412
3.4
%
Resolute Investment Managers, Inc.
Financial Services
30,370
1,286
991
0.4
%
Subtotal Equity/Other
$
19,417
$
17,719
6.4
%
TOTAL INVESTMENTS
$
733,390
$
704,292
253.7
%
(a) 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, 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) 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) Percentages are based on SLF members’ capital as of December 31, 2025.
(d) SLF has various unfunded commitments to portfolio companies.
(e) SLF’s investment or a portion thereof is held through a total return swap agreement with J.P. Morgan.
(f) 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 December 31, 2025.
65
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 June 30, 2026
(Unaudited)
Below is certain summarized financial information for SLF as of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and June 30, 2025:
Selected Statements of Assets and Liabilities Information
June 30,
December 31,
2026
2025
ASSETS
Investments, at fair value (amortized cost of $717,633 and $733,390, respectively)
$
679,825
$
704,292
Cash and other assets
41,647
47,224
Total assets
$
721,472
$
751,516
LIABILITIES
Revolving credit facilities (net of deferred financing costs of $1,107 and $1,445, respectively)
$
441,393
$
450,555
Secured borrowings
461
599
Other liabilities
23,678
22,715
Total Liabilities
$
465,532
$
473,869
MEMBERS’ CAPITAL
Total members’ capital
$
255,940
$
277,647
Total liabilities and members’ capital
$
721,472
$
751,516
Selected Statements of Operations Information
For the three months ended June 30,
For the six months ended June 30,
2026
2025
2026
2025
Investment income:
Total investment income
13,193
20,787
27,343
43,584
Operating expenses:
Interest and credit facility financing expenses
6,558
8,949
13,208
18,047
Other expenses
541
604
1,167
1,214
Total expenses
7,099
9,553
14,375
19,261
Net investment income
6,094
11,234
12,968
24,323
Realized and unrealized gain (loss) on investments and extinguishment of debt:
Net realized and unrealized gain (loss) on investments and extinguishment of debt
(2,923)
(1,145)
(22,023)
(13,011)
Net increase (decrease) in members’ capital resulting from operations
$
3,171
$
10,089
$
(9,055)
$
11,312
66
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 June 30, 2026
(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 six months ended June 30, 2026 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 Finance, LLC.
Selected Balance Sheet Information
As of June 30,
As of December 31,
2026
2025
Total Assets
$
1,369,732
$
1,252,779
Total Liabilities
1,163,902
1,069,033
Selected Income Statement Information
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2026
2025
2026
2025
Revenues
$
33,771
$
35,228
$
68,075
$
69,335
Net income (loss)
5,854
3,939
15,316
3,568
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.
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 June 30, 2026
(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 “liquidity 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 June 30, 2026 and December 31, 2025, $14.9 million and $15.4 million was payable to the Adviser for Management Fees, respectively.
For the three and six months ended June 30, 2026, the Company incurred $14.9 million and $29.9 million, respectively, in Management Fees under the Amended and Restated Investment Advisory Agreement. For the three and six months ended June 30, 2025,the Company incurred $15.2 million and $30.2 million, respectively, in Management Fees under the Amended and Restated Investment Advisory Agreement.
68
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 June 30, 2026
(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:
• 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;
• 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
• 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:
•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;
•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
•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.
69
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 June 30, 2026
(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:
•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;
•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
•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 June 30, 2026, $6.9 million was payable to the Adviser for the incentive fee on income. As of December 31, 2025, $8.4 million was payable to the Adviser for the incentive fee on income.
For the three and six months ended June 30, 2026, the Company incurred $6.8 million and $14.2 million, in incentive fees on income under the Amended and Restated Investment Advisory Agreement. For the three and six months ended June 30, 2025, the Company incurred $7.9 million and $16.9 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 theassets 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.
70
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 June 30, 2026
(Unaudited)
For the three and six months ended June 30, 2026 and 2025, 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 June 30, 2026 and December 31, 2025, $1.7 million and $3.1 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 six months ended June 30, 2026,the Company incurred $0.9 million and $1.7 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 six months ended June 30, 2025, the Company incurred $0.7 million and $1.4 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 U.S. Securities and Exchange Commission (“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.
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 June 30, 2026, the aggregate principal amount outstanding of the senior securities issued by the Company was $2.3 billion and the Company’s asset coverage was 178%.
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.
71
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 June 30, 2026
(Unaudited)
On December 27, 2024, Jupiter Funding entered into the First Amendment to the 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, “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 the 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 the 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.
72
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 June 30, 2026
(Unaudited)
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.
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.
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, JPMorgan 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”).
73
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 June 30, 2026
(Unaudited)
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 (the “Fourth Wells Fargo Credit Facility Amendment”), the spread was reduced to 2.15% per annum from 2.75% per annum. The loan and servicing agreement was further amended on April 10, 2026 (the “Fifth Wells Fargo Credit Facility Amendment”), and such amendment, among other things, (i) increased the facility amount from $300.0 million to $400.0 million, (ii) reduced the spread on borrowings from 2.15% to 1.95% per annum, (iii) extended the maturity date from August 25, 2028 to April 10, 2031, (iv) extended the reinvestment period from August 25, 2026 to April 10, 2029 and (v) reduced the non-usage fee to (a) 0.35% per annum on the unused balance through July 10, 2026, (b) 0.50% per annum on the unused balance between July 10, 2026 and January 10, 2027, and (c) thereafter, (1) 0.50% per annum for any unused balance up to or equal to 70.0% of the then current facility amount and (2) 1.50% per annum for any unused balance in excess of 70% of the facility amount. Interest is payable quarterly in arrears.
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.
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”),
74
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 June 30, 2026
(Unaudited)
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 matured on March 30, 2026. The 2026 Notes bore 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 were general unsecured obligations of the Company that ranked 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 2026 Notes. The 2026 Notes rank equally in right of payment with all of the Company’s existing and future senior liabilities that were 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 contained certain covenants, including covenants requiring the Company to (i) comply with the asset coverage requirements of the 1940 Act, whether or not it was subject to those requirements, and (ii) provide financial information to the holders of the 2026 Notes and the Trustee if the Company was no longer subject to the reporting requirements under the Exchange Act. These covenants were 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, occurred prior to maturity, holders of the 2026 Notes would have had 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.
The 2026 Notes were paid off upon maturity on March 30, 2026.
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.
75
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 June 30, 2026
(Unaudited)
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.
2030 Notes
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 $300.0 million aggregate principal amount of its 6.00% 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 6.00% 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. See Note 20 - Subsequent Events for additional information about the exchange offer.
In connection with the 2030 Notes, the Company entered into an interest rate swap to more closely align the interest rates of the Company’s liabilities with the Company’s investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap agreement related to the 2030 Notes, the Company receives a fixed interest rate of 6.00% per annum and pays a floating interest rate of SOFR + 2.515% per annum on $300 million of the 2030 Notes. The Company designated the interest rate swap as the hedging instrument in a qualifying hedge accounting relationship. The carrying value of the 2030 Notes is inclusive of an adjustment for the change in fair value of an effective hedge accounting relationship. Please see Note 6. Derivatives for additional detail.
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 June 30, 2026
(Unaudited)
As of June 30, 2026 and December 31, 2025, the components of the carrying value of the 2030 Notes were as follows:
June 30, 2026
December 31, 2025
Principal amount of debt
$
300,000
$
300,000
Unamortized debt issuance cost
(3,442)
(3,843)
Original issue discount, net of accretion
(2,951)
(3,295)
Adjustment for the change in fair value of an effective hedge accounting relationship
(5,702)
(609)
Carrying value of 2030 Notes
$
287,905
$
292,253
For the three and six months ended June 30, 2026, the components of interest expense related to the 2030 Notes, including the impact of the hedge accounting relationship, were as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2026
Borrowing interest expense
$
4,500
$
9,000
Amortization of debt issuance cost
201
400
Accretion of original issue discount
173
344
Interest rate swaps
3,331
5,425
Hedged items
(3,132)
(5,092)
Total interest and debt financing expenses
$
5,073
$
10,077
For the three and six months ended June 30, 2025, no amounts were recognized.
The following table represents borrowings as of June 30, 2026:
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
$
1,050,000
$
945,532
$
(3,681)
$
941,851
JPM Revolver Facility
1/16/2030
780,000
307,678
(2,313)
305,365
Wells Fargo Credit Facility
4/10/2031
400,000
272,236
(3,245)
268,991
2029 Notes
6/15/2029
400,000
398,937
(3,599)
395,338
2030 Notes (1)
10/2/2030
300,000
291,347
(3,442)
287,905
Total
$
2,930,000
$
2,215,730
$
(16,280)
$
2,199,450
(1) 2030 Notes are inclusive of an adjustment for the change in fair value of an effective hedge accounting relationship.
The following table represents borrowings as of December 31, 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
$
1,050,000
$
962,969
$
(4,241)
$
958,728
JPM Revolver Facility
1/16/2030
780,000
2,216
(2,636)
(420)
Wells Fargo Credit Facility
8/25/2028
300,000
300,000
—
300,000
2026 Notes
3/30/2026
300,000
300,000
—
300,000
2029 Notes
6/15/2029
400,000
398,759
(4,202)
394,557
2030 Notes (1)
10/2/2030
300,000
296,096
(3,843)
292,253
Total
$
3,130,000
$
2,260,040
$
(14,922)
$
2,245,118
77
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 June 30, 2026
(Unaudited)
(1) 2030 Notes are inclusive of an adjustment for the change in fair value of an effective hedge accounting relationship.
The weighted average annualized interest cost for all facility borrowings and unsecured notes for the six months ended June 30, 2026 and 2025 was 5.99% and 6.20%, respectively. The average daily debt outstanding for facility borrowings and unsecured notes for six months ended June 30, 2026 and 2025 was $2.2 billion and $2.1 billion, respectively. The maximum debt outstanding for facility borrowings and unsecured notes for the six months ended June 30, 2026 and 2025 was $2.6 billion and $2.3 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 June 30, 2026 and December 31, 2025, the Company had no short-term borrowings outstanding. For the three and six months ended June 30, 2026 and 2025, the Company did not incur interest expense in connection with short-term borrowings. For the three and six months ended June 30, 2026 and 2025, the Company did not have short-term borrowings.
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 June 30, 2026 and December 31, 2025, the Company had no total return swaps outstanding. 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 June 30, 2026 and December 31, 2025, the Company had no secured borrowings outstanding. For the three and six months ended June 30, 2026, the Company had no interest expense in connection with secured borrowings. For the three months ended June 30, 2025, the Company recorded no interest expense. For the six months ended June 30, 2025, the Company recorded interest expense of $0.4million in connection with secured borrowings. For the six months ended June 30, 2026, the Company had no outstanding balance of secured borrowings. For the six months ended June 30, 2025, the Company had an average outstanding balance of secured borrowings of $12.7 million and bore interest at a weighted average rate of 5.71%.
78
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 June 30, 2026
(Unaudited)
The following table represents interest and debt fees for the three and six months ended June 30, 2026:
Three months ended June 30, 2026
Six months ended June 30, 2026
Interest Rate
Non-Usage Rate
Interest Expense
Deferred Financing Costs (1)
Other Fees (2)
Interest Rate
Non-Usage Rate
Interest Expense
Deferred Financing Costs (1)
Other Fees (2)
JPM Credit Facility
(3)
(4)
$
13,651
$
281
$
255
(3)
(4)
$
27,126
$
560
$
526
JPM Revolver Facility
(5)
0.38%
4,427
162
471
(5)
0.38%
4,680
323
1,209
Wells Fargo Credit Facility
(6)
(7)
4,230
151
104
(6)
(7)
8,591
150
130
2026 Notes (8)
(8)
n/a
—
—
—
3.25%
n/a
2,410
—
—
2029 Notes
7.20%
n/a
7,200
303
90
7.20%
n/a
14,400
603
178
2030 Notes
6.00% (9)
n/a
4,500
201
372
6.00%(9)
n/a
9,000
401
677
Total
$
34,008
$
1,098
$
1,292
$
66,207
$
2,037
$
2,720
(1) Amortization of deferred financing costs.
(2) Includes non-usage fees, custody fees, amortization of premium/discount on unsecured notes, administrative agent fees, and the impact of the effective hedge through the interest rate swap associated with the 2030 Notes.
(3) From January 1, 2026 through June 30, 2026 the JPM Credit Facility had an interest rate of three-month Term SOFR, plus a spread of 2.15% per annum.
(4) From January 1, 2026 through June 30, 2026, the non-usage fee per annum was 0.55%.
(5) From January 1, 2026 through June 30, 2026, 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) From January 1, 2026 through April 9, 2026, the interest rate was daily simple SOFR, with a daily simple SOFR floor of zero, plus a spread of 2.15% per annum. From April 10, 2026 through June 30, 2026, the interest rate was amended to be daily simple SOFR, with a daily simple SOFR floor of zero, plus a spread of 1.95% per annum.
(7) From January 1, 2026 through April 9, 2026, 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. From April 10, 2026 through June 30, 2026 , the non-usage fee per annum was amended to 0.35%.
(8) The 2026 Notes matured on March 30, 2026; therefore, the related interest expense and debt fees reflect activity only through the maturity date.
(9) The 2030 Notes bear fixed interest at 6.00% per annum. Please refer to the above for information related to the Company’s interest rate swap accounted for as a fair value hedge associated with the 2030 Notes.
79
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 June 30, 2026
(Unaudited)
The following table represents interest and debt fees for the three and six months ended June 30, 2025:
Three months ended June 30, 2025
Six months ended June 30, 2025
Interest Rate
Non-Usage Rate
Interest Expense
Deferred Financing Costs (1)
Other Fees (2)
Interest Rate
Non-Usage Rate
Interest Expense
Deferred Financing Costs (1)
Other Fees (2)
JPM Credit Facility
(3)
(4)
$
10,941
$
186
$
295
(3)
(4)
$
21,407
368
596
JPM Revolver Facility
(5)
0.38
%
8,062
163
283
(5)
0.38%
15,280
295
568
Wells Fargo Credit Facility
(6)
(7)
4,906
—
23
(6)
(7)
9,773
—
53
2026 Notes
3.25
%
n/a
2,438
—
—
3.25%
n/a
4,876
—
—
2029 Notes
7.20
%
n/a
7,200
303
89
7.20%
n/a
14,400
588
178
Secured borrowings
(8)
n/a
—
—
—
(8)
n/a
359
—
—
Total
$
33,547
$
652
$
690
$
66,095
$
1,251
$
1,395
(1) Amortization of deferred financing costs.
(2) Includes non-usage fees, custody fees, amortization of premium/discount on unsecured notes, and administrative agent fees.
(3) 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. Subsequent to June 30, 2025, the interest rate was amended to three-month Term SOFR, plus a spread of 2.15% per annum.
(4) From January 1, 2025 through June 30, 2025, the non-usage fee per annum was 0.55%.
(5) From January 1, 2025 through June 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) From January 1, 2025 through June 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) From January 1, 2025 through June 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) From January 1, 2025 through March 18, 2025, the interest rate was three-month SOFR plus 2.80% per annum.
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 June 30, 2026 and December 31, 2025, the Company had no secured borrowings outstanding. 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 June 30, 2026 and December 31, 2025, the Company's borrowings would be deemed to be Level 3, as defined in Note 3 - Fair Value of Financial Instruments.
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:
80
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 June 30, 2026
(Unaudited)
Level
Principal Outstanding as of June 30, 2026
Fair Value as of June 30, 2026
JPM Credit Facility
3
$
945,532
$
945,532
JPM Revolver Facility
3
307,678
307,678
Wells Fargo Credit Facility
3
272,236
272,236
2029 Notes
3
398,937
409,392
2030 Notes(1)
3
291,347
290,202
Total
$
2,215,730
$
2,225,040
(1) 2030 Notes are inclusive of change in fair value of effective hedge.
Level
Principal Outstanding as of December 31, 2025
Fair Value as of December 31, 2025
JPM Credit Facility
3
$
962,969
$
962,969
JPM Revolver Facility
3
2,216
2,216
Wells Fargo Credit Facility
3
300,000
300,000
2026 Notes
3
300,000
298,980
2029 Notes
3
398,759
412,368
2030 Notes(1)
3
296,096
297,126
Total
$
2,260,040
$
2,273,659
(1) 2030 Notes are inclusive of change in fair value of effective hedge.
81
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 June 30, 2026
(Unaudited)
Note 6 - Derivatives
Interest Rate Swaps
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.
In connection with the Company’s issuance of the 2030 Notes, the Company entered into an interest rate swap agreement for a total notional amount of $300 million that matures on October 2, 2030. The Company receives fixed interest rate of 6.00% and pays floating interest rate of three-month SOFR plus 2.515%. The Company designated this interest rate swap and the 2030 Notes as a qualifying fair value hedge accounting relationship. As of June 30, 2026 and December 31, 2025, the interest rate swap had a fair value of $(5.7) million and $(0.6) million, respectively, included as a component of other liabilities on the consolidated statement of assets and liabilities.
The Company may also enter into interest rate swap agreements for which the Company does not utilize hedge accounting. These agreements are marked-to-market by recognizing the difference between the contract interest rate and the current market rate as unrealized gain (loss) on derivatives on the consolidated statements of assets and liabilities. As of June 30, 2026 and December 31, 2025, there was $45 thousand and $0.3 million of unrealized loss, respectively. For the three and six months ended June 30, 2026, the net change in unrealized appreciation (depreciation) on derivatives that does not utilize hedge accounting was $0.1 million and $0.3 million. For the three and six months ended June 30, 2025, the net change in unrealized appreciation (depreciation) on derivatives that does not utilize hedge accounting was $(0.1) million, and $(0.3) million, respectively. For the three and six months ended June 30, 2026, the net realized loss on derivatives that does not utilize hedge accounting was $(21) thousand and $(40) thousand, respectively. For the three and six months ended June 30, 2025, the net realized gain on derivatives that does not utilize hedge accounting was $17 thousand and$6 thousand.
As of June 30, 2026 and December 31, 2025, the interest rate swaps are classified within Level 2 of the fair value hierarchy and is subject to ISDA Master Agreements or similar agreements.As of June 30, 2026 and December 31, 2025, there was $5.4 million and $1.4 million, respectively, of collateral pledged for derivatives which is included in restricted cash on the consolidated statements of assets and liabilities.
82
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 June 30, 2026
(Unaudited)
Note 7 - Commitments and Contingencies
Commitments
In the ordinary course of business, the Company may enter into future funding commitments. As of June 30, 2026 and December 31, 2025, the Company had unfunded commitments of $678.3million and $701.3 million, respectively. The Company maintains sufficient cash on hand, and available borrowings to fund such unfunded commitments.
As of June 30, 2026, 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
$
4,762
$
3,810
ACE Solutions, LLC
Senior Secured First Lien Debt
Delayed Draw
3,135
3,135
ADCS Clinics Intermediate Holdings, LLC
Senior Secured First Lien Debt
Revolver
1,797
616
Adelaide Borrower, LLC
Senior Secured First Lien Debt
Delayed Draw
7,960
7,960
Adelaide Borrower, LLC
Senior Secured First Lien Debt
Revolver
4,989
4,590
Amylu Borrower Sub, LLC
Senior Secured First Lien Debt
Delayed Draw
6,772
5,637
Amylu Borrower Sub, LLC
Senior Secured First Lien Debt
Revolver
7,906
7,906
Aprio Advisory Group, LLC
Senior Secured First Lien Debt
Delayed Draw
11,249
10,492
Aprio Advisory Group, LLC
Senior Secured First Lien Debt
Revolver
911
911
Arch Global Precision, LLC
Senior Secured First Lien Debt
Revolver
1,012
118
Arctic Holdco, LLC
Senior Secured First Lien Debt
Revolver
3,514
2,530
Armada Parent, Inc.
Senior Secured First Lien Debt
Revolver
6,601
6,601
Artifact Bidco, Inc.
Senior Secured First Lien Debt
Delayed Draw
2,663
2,663
Artifact Bidco, Inc.
Senior Secured First Lien Debt
Revolver
1,901
1,901
AuditBoard, Inc.
Senior Secured First Lien Debt
Revolver
4,360
4,360
Azurite Intermediate Holdings, Inc.
Senior Secured First Lien Debt
Revolver
3,622
3,622
Bayou Holdings Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
4,107
4,107
Bayou Holdings Buyer, Inc.
Senior Secured First Lien Debt
Revolver
3,284
3,284
Big Apple Advisory, LLC
Senior Secured First Lien Debt
Delayed Draw
22,817
16,725
Big Apple Advisory, LLC
Senior Secured First Lien Debt
Revolver
6,398
6,398
Bingo Group Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
3,424
2,780
Bingo Group Buyer, Inc.
Senior Secured First Lien Debt
Revolver
652
632
Capstone Acquisition Holdings, Inc.
Senior Secured First Lien Debt
Revolver
1,804
1,804
Carr, Riggs & Ingram Capital, LLC
Senior Secured First Lien Debt
Delayed Draw
5,919
3,829
Carr, Riggs & Ingram Capital, LLC
Senior Secured First Lien Debt
Revolver
2,715
2,274
CCI Buyer, Inc.
Senior Secured First Lien Debt
Revolver
3,051
3,051
Charter Industries Holdings, LLC
Senior Secured First Lien Debt
Delayed Draw
3,540
3,540
Charter Industries Holdings, LLC
Senior Secured First Lien Debt
Revolver
5,313
5,313
Cliffwater, LLC
Senior Secured First Lien Debt
Revolver
2,881
2,881
Coalesce Merlin Purchaser, LLC
Senior Secured First Lien Debt
Delayed Draw
9,760
3,997
Coalesce Merlin Purchaser, LLC
Senior Secured First Lien Debt
Revolver
4,885
4,553
Communication Technology Intermediate, LLC
Senior Secured First Lien Debt
Revolver
3,361
2,622
Coronis Health I, LLC
Senior Secured First Lien Debt
Delayed Draw
1,330
532
DayMark Wealth Partners, LLC
Senior Secured First Lien Debt
Delayed Draw
4,000
4,000
DayMark Wealth Partners, LLC
Senior Secured First Lien Debt
Revolver
500
500
Einstein Parent, Inc.
Senior Secured First Lien Debt
Revolver
2,310
2,310
83
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 June 30, 2026
(Unaudited)
Portfolio Company Name
Investment Type
Commitment Type
Total Commitment
Remaining Commitment
Electric Power Engineers, LLC
Senior Secured First Lien Debt
Delayed Draw
$
13,290
$
6,911
Electric Power Engineers, LLC
Senior Secured First Lien Debt
Revolver
5,317
3,190
Electro-Methods, LP
Senior Secured First Lien Debt
Revolver
8,301
8,301
FGT Purchaser, LLC
Senior Secured First Lien Debt
Revolver
3,120
3,120
Flow Traders Holding, LLC
Senior Secured First Lien Debt
Revolver
6,253
3,335
Galway Borrower, LLC
Senior Secured First Lien Debt
Delayed Draw
3,379
3,379
Galway Borrower, LLC
Senior Secured First Lien Debt
Revolver
3,324
2,269
Groome Purchaser, LLC
Senior Secured First Lien Debt
Delayed Draw
5,262
4,385
Groome Purchaser, LLC
Senior Secured First Lien Debt
Revolver
2,630
2,630
GRVTY, Inc.
Senior Secured First Lien Debt
Delayed Draw
2,371
2,371
GRVTY, Inc.
Senior Secured First Lien Debt
Revolver
1,185
1,185
High Street Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
34,695
29,490
Hospice Care Buyer, Inc.
Senior Secured First Lien Debt
Revolver
2,783
579
Hunter Communications & Technologies, LLC
Senior Secured First Lien Debt
Delayed Draw
3,143
2,703
Hunter Communications & Technologies, LLC
Senior Secured First Lien Debt
Revolver
628
628
ICAT Intermediate Holdings, LLC
Senior Secured First Lien Debt
Delayed Draw
4,857
4,857
ICAT Intermediate Holdings, LLC
Senior Secured First Lien Debt
Delayed Draw
8,667
3,908
ICAT Intermediate Holdings, LLC
Senior Secured First Lien Debt
Revolver
1,318
1,318
Ideal Tridon Holdings, Inc.
Senior Secured First Lien Debt
Delayed Draw
7,784
7,784
Ideal Tridon Holdings, Inc.
Senior Secured First Lien Debt
Revolver
6,485
3,978
IG Investments Holdings, LLC
Senior Secured First Lien Debt
Revolver
3,463
3,463
Indigo Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
11,364
1,600
Indigo Buyer, Inc.
Senior Secured First Lien Debt
Revolver
5,166
5,166
InhabitIQ, Inc.
Senior Secured First Lien Debt
Delayed Draw
7,261
7,261
InhabitIQ, Inc.
Senior Secured First Lien Debt
Revolver
4,537
4,537
Integrated Global Services, Inc.
Senior Secured First Lien Debt
Delayed Draw
5,471
5,471
Integrated Global Services, Inc.
Senior Secured First Lien Debt
Revolver
6,154
1,094
IQN Holding Corp.
Senior Secured First Lien Debt
Revolver
1,520
608
Kahala Ireland Opco DAC
Subordinated Debt
Delayed Draw
150,000
150,000
Knowledge Pro Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
24,750
1,670
Knowledge Pro Buyer, Inc.
Senior Secured First Lien Debt
Revolver
5,483
2,820
Last Dance Intermediate II, LLC
Senior Secured First Lien Debt
Delayed Draw
8,029
5,085
Last Dance Intermediate II, LLC
Senior Secured First Lien Debt
Revolver
3,961
3,961
Lighthouse Intelligence, Ltd.
Senior Secured First Lien Debt
Delayed Draw
12,009
12,009
Lighthouse Intelligence, Ltd.
Senior Secured First Lien Debt
Revolver
8,578
8,578
Mandrake Bidco, Inc.
Senior Secured First Lien Debt
Revolver
10,102
10,102
Manna Pro Products, LLC
Senior Secured First Lien Debt
Revolver
2,706
2,300
Maravai Intermediate Holdings, LLC
Senior Secured First Lien Debt
Revolver
2,857
2,857
McDonald Worley, P.C.
Senior Secured First Lien Debt
Term Loan
39,427
5
McDonald Worley, P.C.
Senior Secured First Lien Debt
Delayed Draw
23
23
Medical Management Resource Group, LLC
Senior Secured First Lien Debt
Revolver
1,775
1,775
Midwest Can Company, LLC
Senior Secured First Lien Debt
Revolver
2,019
2,019
Mirra-Primeaccess Holdings, LLC
Senior Secured First Lien Debt
Revolver
11,256
2,814
84
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 June 30, 2026
(Unaudited)
Portfolio Company Name
Investment Type
Commitment Type
Total Commitment
Remaining Commitment
MRI Software, LLC
Senior Secured First Lien Debt
Delayed Draw
$
429
$
192
MRI Software, LLC
Senior Secured First Lien Debt
Revolver
57
43
Muth Mirror Systems, LLC
Senior Secured First Lien Debt
Revolver
1,299
390
MWH Intermediate II, LLC
Senior Secured First Lien Debt
Revolver
1,811
869
Odessa Technologies, Inc.
Senior Secured First Lien Debt
Revolver
5,451
5,451
OneSource Virtual, Inc.
Senior Secured First Lien Debt
Revolver
2,710
2,710
Palmdale Oil Co., LLC
Senior Secured First Lien Debt
Delayed Draw
3,351
3,351
PetVet Care Centers, LLC
Senior Secured First Lien Debt
Revolver
4,032
2,822
Pluralsight, LLC
Senior Secured First Lien Debt
Delayed Draw
2,879
2,879
Pluralsight, LLC
Senior Secured First Lien Debt
Revolver
1,151
1,151
Post Road Equipment Finance, LLC
Subordinated Debt
Revolver
35,000
4,000
Post Road Equipment Finance, LLC
Subordinated Debt
Revolver
40,000
40,000
Questex, Inc.
Senior Secured First Lien Debt
Revolver
1,938
1,938
Reagent Chemical and Research, LLC
Senior Secured First Lien Debt
Revolver
7,478
7,478
Rialto Management Group, LLC
Senior Secured First Lien Debt
Revolver
752
752
Saab Purchaser, Inc.
Senior Secured First Lien Debt
Delayed Draw
17,300
17,300
Saab Purchaser, Inc.
Senior Secured First Lien Debt
Revolver
2,306
2,306
Saturn SHC Buyer Holdings, Inc.
Senior Secured First Lien Debt
Revolver
12,898
12,898
Saturn Sound Bidco, Ltd.
Senior Secured First Lien Debt
Delayed Draw
4,510
4,510
SCIH Salt Holdings, Inc.
Senior Secured First Lien Debt
Revolver
3,746
3,746
Sherlock Buyer Corp.
Senior Secured First Lien Debt
Revolver
1,865
1,865
Simplifi Holdings, Inc.
Senior Secured First Lien Debt
Revolver
5,502
3,576
SunMed Group Holdings, LLC
Senior Secured First Lien Debt
Revolver
860
860
TEI Intermediate, LLC
Senior Secured First Lien Debt
Delayed Draw
7,312
2,077
TEI Intermediate, LLC
Senior Secured First Lien Debt
Revolver
3,107
2,723
The NPD Group, LP
Senior Secured First Lien Debt
Revolver
2,865
2,865
Trinity Air Consultants Holdings Corp.
Senior Secured First Lien Debt
Delayed Draw
3,477
3,477
Trinity Air Consultants Holdings Corp.
Senior Secured First Lien Debt
Revolver
926
926
Triple Lift, Inc.
Senior Secured First Lien Debt
Revolver
4,693
4,693
Trystar, LLC
Senior Secured First Lien Debt
Revolver
6,291
6,291
US Oral Surgery Management Holdco, LLC
Senior Secured First Lien Debt
Revolver
1,694
1,694
US Salt Investors, LLC
Senior Secured First Lien Debt
Revolver
1,939
1,939
Vanco Payment Solutions, LLC
Senior Secured First Lien Debt
Revolver
530
530
Varicent Intermediate Holdings Corp.
Senior Secured First Lien Debt
Delayed Draw
1,210
1,210
Varicent Intermediate Holdings Corp.
Senior Secured First Lien Debt
Delayed Draw
1,990
1,990
Varicent Intermediate Holdings Corp.
Senior Secured First Lien Debt
Revolver
3,058
3,058
Victors CCC Buyer, LLC
Senior Secured First Lien Debt
Delayed Draw
996
996
85
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 June 30, 2026
(Unaudited)
Portfolio Company Name
Investment Type
Commitment Type
Total Commitment
Remaining Commitment
Victors CCC Buyer, LLC
Senior Secured First Lien Debt
Revolver
$
4,537
$
4,537
West Coast Dental Services, Inc.
Senior Secured First Lien Debt
Revolver
3,644
14
Westwood Professional Services, Inc.
Senior Secured First Lien Debt
Delayed Draw
13,091
6,149
Westwood Professional Services, Inc.
Senior Secured First Lien Debt
Revolver
6,813
6,813
Wharf Street Ratings Acquisition, LLC
Senior Secured First Lien Debt
Delayed Draw
2,867
2,867
Wharf Street Ratings Acquisition, LLC
Senior Secured First Lien Debt
Revolver
2,867
2,867
WHCG Purchaser III, Inc.
Senior Secured First Lien Debt
Delayed Draw
7,556
7,556
WIN Holdings III Corp.
Senior Secured First Lien Debt
Revolver
6,356
2,781
Wipfli Advisory, LLC
Senior Secured First Lien Debt
Delayed Draw
6,035
5,041
Wipfli Advisory, LLC
Senior Secured First Lien Debt
Revolver
4,024
4,024
Zendesk, Inc.
Senior Secured First Lien Debt
Revolver
6,590
6,590
$
879,701
$
678,318
As of December 31, 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
$
4,762
$
4,762
ADCS Clinics Intermediate Holdings, LLC
Senior Secured First Lien Debt
Revolver
1,797
1,540
Adelaide Borrower, LLC
Senior Secured First Lien Debt
Delayed Draw
7,960
7,960
Adelaide Borrower, LLC
Senior Secured First Lien Debt
Revolver
4,989
4,091
Amylu Borrower Sub, LLC
Senior Secured First Lien Debt
Delayed Draw
6,778
6,778
Amylu Borrower Sub, LLC
Senior Secured First Lien Debt
Revolver
7,906
7,906
Aprio Advisory Group, LLC
Senior Secured First Lien Debt
Delayed Draw
11,249
11,249
Aprio Advisory Group, LLC
Senior Secured First Lien Debt
Revolver
911
911
Arch Global Precision, LLC
Senior Secured First Lien Debt
Revolver
1,008
63
Arctic Holdco, LLC
Senior Secured First Lien Debt
Delayed Draw
5,246
2,003
Arctic Holdco, LLC
Senior Secured First Lien Debt
Revolver
3,514
2,882
Armada Parent, Inc.
Senior Secured First Lien Debt
Revolver
6,601
6,601
Artifact Bidco, Inc.
Senior Secured First Lien Debt
Delayed Draw
2,663
2,663
Artifact Bidco, Inc.
Senior Secured First Lien Debt
Revolver
1,901
1,901
AuditBoard, Inc.
Senior Secured First Lien Debt
Revolver
4,360
4,360
Azurite Intermediate Holdings, Inc.
Senior Secured First Lien Debt
Revolver
3,622
3,622
Bayou Holdings Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
4,107
4,107
Bayou Holdings Buyer, Inc.
Senior Secured First Lien Debt
Revolver
3,284
3,284
BCPE Oceandrive Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
3,323
3,323
Big Apple Advisory, LLC
Senior Secured First Lien Debt
Delayed Draw
22,847
17,638
Big Apple Advisory, LLC
Senior Secured First Lien Debt
Revolver
6,398
6,398
Bingo Group Buyer, Inc.
Senior Secured First Lien Debt
Revolver
652
632
Bingo Group Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
3,424
3,424
Capstone Acquisition Holdings, Inc.
Senior Secured First Lien Debt
Revolver
1,804
1,804
Carr, Riggs & Ingram Capital, LLC
Senior Secured First Lien Debt
Delayed Draw
5,929
4,337
86
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 June 30, 2026
(Unaudited)
Portfolio Company Name
Investment Type
Commitment Type
Total Commitment
Remaining Commitment
Carr, Riggs & Ingram Capital, LLC
Senior Secured First Lien Debt
Revolver
$
2,715
$
2,715
CCI Buyer, Inc.
Senior Secured First Lien Debt
Revolver
3,051
3,051
Charter Industries Holdings, LLC
Senior Secured First Lien Debt
Delayed Draw
3,540
3,540
Charter Industries Holdings, LLC
Senior Secured First Lien Debt
Revolver
5,313
5,313
Cliffwater, LLC
Senior Secured First Lien Debt
Revolver
2,881
2,881
Coalesce Merlin Purchaser, LLC
Senior Secured First Lien Debt
Delayed Draw
9,771
8,991
Coalesce Merlin Purchaser, LLC
Senior Secured First Lien Debt
Revolver
4,885
4,885
Communication Technology Intermediate, LLC
Senior Secured First Lien Debt
Revolver
3,361
2,173
Coronis Health I, LLC
Senior Secured First Lien Debt
Delayed Draw
1,330
798
Einstein Parent, Inc.
Senior Secured First Lien Debt
Revolver
2,310
2,310
Electric Power Engineers, LLC
Senior Secured First Lien Debt
Delayed Draw
13,290
13,290
Electric Power Engineers, LLC
Senior Secured First Lien Debt
Revolver
5,317
5,317
Electro-Methods, LP
Senior Secured First Lien Debt
Revolver
8,301
8,301
FGT Purchaser, LLC
Senior Secured First Lien Debt
Revolver
3,120
3,120
Flow Traders Holding, LLC
Senior Secured First Lien Debt
Revolver
6,253
6,253
Galway Borrower, LLC
Senior Secured First Lien Debt
Delayed Draw
4,507
3,587
Galway Borrower, LLC
Senior Secured First Lien Debt
Revolver
3,324
2,743
Groome Purchaser, LLC
Senior Secured First Lien Debt
Delayed Draw
3,509
3,509
Groome Purchaser, LLC
Senior Secured First Lien Debt
Delayed Draw
5,262
5,262
Groome Purchaser, LLC
Senior Secured First Lien Debt
Revolver
2,630
2,630
High Street Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
34,717
31,239
Hospice Care Buyer, Inc.
Senior Secured First Lien Debt
Revolver
2,783
698
ICAT Intermediate Holdings, LLC
Senior Secured First Lien Debt
Delayed Draw
8,685
6,514
ICAT Intermediate Holdings, LLC
Senior Secured First Lien Debt
Revolver
1,318
1,318
ICR Operations, LLC
Senior Secured First Lien Debt
Revolver
6,178
2,394
ICR Operations, LLC
Senior Secured First Lien Debt
Revolver
1,810
1,810
Ideal Tridon Holdings, Inc.
Senior Secured First Lien Debt
Delayed Draw
7,784
7,784
Ideal Tridon Holdings, Inc.
Senior Secured First Lien Debt
Revolver
6,485
5,620
IG Investments Holdings, LLC
Senior Secured First Lien Debt
Revolver
3,463
3,463
Indigo Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
11,398
7,391
Indigo Buyer, Inc.
Senior Secured First Lien Debt
Revolver
5,166
5,166
InhabitIQ, Inc.
Senior Secured First Lien Debt
Delayed Draw
7,261
7,261
InhabitIQ, Inc.
Senior Secured First Lien Debt
Revolver
4,537
4,537
Integrated Efficiency Solutions, Inc.
Senior Secured First Lien Debt
Revolver
600
600
Integrated Global Services, Inc.
Senior Secured First Lien Debt
Delayed Draw
5,471
5,471
Integrated Global Services, Inc.
Senior Secured First Lien Debt
Revolver
6,154
4,513
IQN Holding Corp.
Senior Secured First Lien Debt
Revolver
1,520
532
Kahala Ireland Opco DAC
Subordinated Debt
Delayed Draw
100,000
100,000
Knowledge Pro Buyer, Inc.
Senior Secured First Lien Debt
Revolver
5,483
5,483
Knowledge Pro Buyer, Inc.
Senior Secured First Lien Debt
Delayed Draw
24,918
3,296
Last Dance Intermediate II, LLC
Senior Secured First Lien Debt
Delayed Draw
15,349
11,190
Last Dance Intermediate II, LLC
Senior Secured First Lien Debt
Revolver
3,961
3,961
Lighthouse Intelligence, Ltd.
Senior Secured First Lien Debt
Delayed Draw
12,009
12,009
Lighthouse Intelligence, Ltd.
Senior Secured First Lien Debt
Revolver
8,578
8,578
87
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 June 30, 2026
(Unaudited)
Portfolio Company Name
Investment Type
Commitment Type
Total Commitment
Remaining Commitment
Mandrake Bidco, Inc.
Senior Secured First Lien Debt
Revolver
$
10,102
$
10,102
Manna Pro Products, LLC
Senior Secured First Lien Debt
Revolver
2,706
2,706
McDonald Worley, P.C.
Senior Secured First Lien Debt
Term Loan
39,358
5
McDonald Worley, P.C.
Senior Secured First Lien Debt
Delayed Draw
93
93
Medical Management Resource Group, LLC
Senior Secured First Lien Debt
Revolver
1,929
1,157
Midwest Can Company, LLC
Senior Secured First Lien Debt
Revolver
2,019
2,019
Mirra-Primeaccess Holdings, LLC
Senior Secured First Lien Debt
Revolver
11,256
2,814
MRI Software, LLC
Senior Secured First Lien Debt
Delayed Draw
429
377
MRI Software, LLC
Senior Secured First Lien Debt
Revolver
57
46
Muth Mirror Systems, LLC
Senior Secured First Lien Debt
Revolver
1,311
260
MWH Intermediate II, LLC
Senior Secured First Lien Debt
Delayed Draw
9,050
7,045
MWH Intermediate II, LLC
Senior Secured First Lien Debt
Revolver
1,811
1,811
Odessa Technologies, Inc.
Senior Secured First Lien Debt
Revolver
5,451
5,451
Palmdale Oil Co., LLC
Senior Secured First Lien Debt
Delayed Draw
3,351
3,351
Palmdale Oil Co., LLC
Senior Secured First Lien Debt
Delayed Draw
1,005
1,005
PetVet Care Centers, LLC
Senior Secured First Lien Debt
Revolver
4,032
3,629
Pluralsight, LLC
Senior Secured First Lien Debt
Delayed Draw
2,879
2,879
Pluralsight, LLC
Senior Secured First Lien Debt
Revolver
1,151
1,151
Post Road Equipment Finance, LLC
Subordinated Debt
Delayed Draw
35,000
1,000
Post Road Equipment Finance, LLC
Subordinated Debt
Delayed Draw
40,000
40,000
Questex, Inc.
Senior Secured First Lien Debt
Revolver
1,938
1,938
Reagent Chemical and Research, LLC
Senior Secured First Lien Debt
Revolver
7,478
7,478
Relativity Oda, LLC
Senior Secured First Lien Debt
Revolver
660
660
Rialto Management Group, LLC
Senior Secured First Lien Debt
Revolver
752
752
Saab Purchaser, Inc.
Senior Secured First Lien Debt
Delayed Draw
17,300
17,300
Saab Purchaser, Inc.
Senior Secured First Lien Debt
Revolver
2,306
2,306
Saturn SHC Buyer Holdings, Inc.
Senior Secured First Lien Debt
Revolver
12,898
12,898
Saturn Sound Bidco, Ltd.
Senior Secured First Lien Debt
Delayed Draw
4,510
4,510
SCIH Salt Holdings, Inc.
Senior Secured First Lien Debt
Revolver
3,746
3,416
Sherlock Buyer Corp.
Senior Secured First Lien Debt
Revolver
1,865
1,865
Simplifi Holdings, Inc.
Senior Secured First Lien Debt
Revolver
5,502
4,986
SunMed Group Holdings, LLC
Senior Secured First Lien Debt
Revolver
860
860
TEI Intermediate, LLC
Senior Secured First Lien Debt
Delayed Draw
7,312
6,380
TEI Intermediate, LLC
Senior Secured First Lien Debt
Revolver
3,107
2,248
The NPD Group, LP
Senior Secured First Lien Debt
Revolver
2,865
2,865
Trinity Air Consultants Holdings Corp.
Senior Secured First Lien Debt
Delayed Draw
3,477
3,477
Trinity Air Consultants Holdings Corp.
Senior Secured First Lien Debt
Revolver
926
926
Triple Lift, Inc.
Senior Secured First Lien Debt
Revolver
4,693
4,693
Trystar, LLC
Senior Secured First Lien Debt
Delayed Draw
12,590
9,664
Trystar, LLC
Senior Secured First Lien Debt
Revolver
6,291
6,291
US Oral Surgery Management Holdco, LLC
Senior Secured First Lien Debt
Revolver
1,694
1,694
88
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 June 30, 2026
(Unaudited)
Portfolio Company Name
Investment Type
Commitment Type
Total Commitment
Remaining Commitment
US Salt Investors, LLC
Senior Secured First Lien Debt
Revolver
$
3,103
$
3,103
Vanco Payment Solutions, LLC
Senior Secured First Lien Debt
Revolver
530
530
Varicent Intermediate Holdings Corp.
Senior Secured First Lien Debt
Delayed Draw
1,210
1,210
Varicent Intermediate Holdings Corp.
Senior Secured First Lien Debt
Delayed Draw
2,926
2,926
Varicent Intermediate Holdings Corp.
Senior Secured First Lien Debt
Revolver
3,058
3,058
Victors CCC Buyer, LLC
Senior Secured First Lien Debt
Revolver
4,537
4,537
West Coast Dental Services, Inc.
Senior Secured First Lien Debt
Revolver
3,663
33
Westwood Professional Services, Inc.
Senior Secured First Lien Debt
Delayed Draw
13,122
8,693
Westwood Professional Services, Inc.
Senior Secured First Lien Debt
Revolver
6,813
6,813
Wharf Street Ratings Acquisition, LLC
Senior Secured First Lien Debt
Delayed Draw
2,867
2,867
Wharf Street Ratings Acquisition, LLC
Senior Secured First Lien Debt
Revolver
2,867
2,867
WHCG Purchaser III, Inc.
Senior Secured First Lien Debt
Delayed Draw
7,556
7,556
WIN Holdings III Corp.
Senior Secured First Lien Debt
Revolver
6,356
5,164
Wipfli Advisory, LLC
Senior Secured First Lien Debt
Delayed Draw
6,035
6,035
Wipfli Advisory, LLC
Senior Secured First Lien Debt
Revolver
4,024
4,024
Zendesk, Inc.
Senior Secured First Lien Debt
Delayed Draw
5,491
5,491
Zendesk, Inc.
Senior Secured First Lien Debt
Revolver
6,590
6,590
$
863,841
$
701,341
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.
89
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 June 30, 2026
(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.
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 June 30, 2026 and as of December 31, 2025:
As of June 30, 2026
As of December 31, 2025
Capital Commitments
Unfunded Capital Commitments
Capital Commitments
Unfunded Capital Commitments
Common Stock
$
375,461
$
—
$
375,461
$
—
Series A Preferred Stock
77,500
—
77,500
—
Total
$
452,961
$
—
$
452,961
$
—
Capital Drawdowns
For the six months ended June 30, 2026 and the year ended December 31, 2025, there were no capital drawdowns of Common Stock or Series A Preferred Stock.
90
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 June 30, 2026
(Unaudited)
Note 10 - Common Stock
The following table reflects the net assets attributable to Common Stock activity for the six months ended June 30, 2026:
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, 2025
135,487,319
$
135
$
2,530,983
$
(691,048)
$
1,840,070
Net investment income (loss)
—
—
—
36,549
36,549
Net realized gain (loss)
—
—
—
(32,817)
(32,817)
Net change in unrealized appreciation (depreciation) on investments
—
—
—
14,739
14,739
Accretion to redemption value of Series A redeemable convertible preferred stock
—
—
—
(5)
(5)
Accrual of Series A redeemable convertible preferred stock distributions
—
—
—
(1,226)
(1,226)
Distributions to common stockholders
—
—
—
(32,517)
(32,517)
Reinvested dividends
495,249
1
6,856
—
6,857
Balance as of March 31, 2026
135,982,568
$
136
$
2,537,839
$
(706,325)
$
1,831,650
Net investment income (loss)
—
—
—
33,233
33,233
Net realized gain (loss)
—
—
—
(1,239)
(1,239)
Net change in unrealized appreciation (depreciation) on investments
—
—
—
(5,466)
(5,466)
Accretion to redemption value of Series A redeemable convertible preferred stock
—
—
—
(4)
(4)
Accrual of Series A redeemable convertible preferred stock distributions
—
—
—
(1,226)
(1,226)
Distributions to common stockholders
—
—
—
(32,035)
(32,035)
Reinvested dividends
(124)
—
(2)
—
(2)
Repurchases
(2,499,996)
(3)
(33,947)
—
(33,950)
Balance as of June 30, 2026
133,482,448
$
133
$
2,503,890
$
(713,062)
$
1,790,961
91
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 June 30, 2026
(Unaudited)
The following table reflects the net assets attributable to Common Stock activity for the six months ended June 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
135,487,595
$
135
$
2,517,890
$
(607,648)
$
1,910,377
Net investment income (loss)
—
—
—
44,924
44,924
Net realized gain (loss) from investment transactions
—
—
—
3,452
3,452
Net change in unrealized appreciation (depreciation) on investments
—
—
—
(23,517)
(23,517)
Accretion to redemption value of Series A redeemable convertible preferred stock
—
—
—
(5)
(5)
Accrual of Series A redeemable convertible preferred stock distributions
—
—
—
(1,686)
(1,686)
Distributions to common stockholders
—
—
—
(44,703)
(44,703)
Reinvested dividends
708,547
1
9,990
—
9,991
Balance as of March 31, 2025
136,196,142
$
136
$
2,527,880
$
(629,183)
$
1,898,833
Net investment income (loss)
—
—
—
39,580
39,580
Net realized gain (loss) from investment transactions
—
—
—
(11,492)
(11,492)
Net change in unrealized appreciation (depreciation) on investments
—
—
—
(1,930)
(1,930)
Accretion to redemption value of Series A redeemable convertible preferred stock
—
—
—
(4)
(4)
Accrual of Series A redeemable convertible preferred stock distributions
—
—
—
(1,687)
(1,687)
Distributions to common stockholders
—
—
—
(44,942)
(44,942)
Repurchases
(2,475,426)
(2)
(34,901)
—
(34,903)
Reinvested dividends
666,581
1
9,291
—
9,292
Balance as of June 30, 2025
134,387,297
$
135
$
2,502,270
$
(649,658)
$
1,852,747
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.
The following table reflects the Common Stock activity for the six months ended June 30, 2026:
Shares
Value
Shares issued through DRIP
495,125
$
6,856
Share repurchases
(2,499,996)
(33,950)
(2,004,871)
$
(27,094)
92
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 June 30, 2026
(Unaudited)
The following table reflects the Common Stock activity for the year ended December 31, 2025:
Shares
Value
Shares issued through DRIP
2,568,531
$
35,668
Share repurchases
(2,568,807)
(36,219)
(276)
$
(551)
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 June 30, 2026 and December 31, 2025, 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 June 30, 2026, 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, 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. 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.
93
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 June 30, 2026
(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, and each holder of Series A Preferred Stock has the right to require the Company 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 the other party. As of June 30, 2026, a liquidity event had not commenced.
In the event of a liquidation, dissolution or winding-up of the Company, each holder of Series A Preferred Stock will be entitled to receive from the assets of the Company the greater of (1) an amount equal to the Liquidation preference of each share of Series A Preferred Stock, or (2) such amount per share as would have been payable had all shares of Series A Preferred Stock been converted into shares of Common Stock immediately prior to such liquidation, dissolution or winding up.
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 six months ended June 30, 2026:
Series A Preferred Stock
Shares
Amount
Beginning Balance, December 31, 2025
77,500
$
77,434
Amortization of offering costs
—
9
Ending Balance, June 30, 2026
77,500
$
77,443
The following table presents the activity in the Company’s Series A Preferred Stock for the six months ended June 30, 2025:
Series A Preferred Stock
Shares
Amount
Beginning Balance, December 31, 2024
77,500
$
77,416
Amortization of offering costs
—
9
Ending Balance, June 30, 2025
77,500
$
77,425
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:
•the effect of such repurchases on the Company's qualification as a RIC (including the consequences of any necessary asset sales);
•the liquidity of the Company's assets (including fees and costs associated with disposing of assets);
•the Company's investment plans and working capital requirements;
•the relative economies of scale with respect to the Company's size;
•the Company's history in repurchasing shares or portions thereof; and
•the condition of the securities markets.
94
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 June 30, 2026
(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)
March 3, 2025
May 9, 2025
23,444,496
2,475,427
$
14.10
$
34,903.49
March 5, 2026
May 8, 2026
34,527,343
2,499,996
$
13.58
$
33,949.95
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 six months ended June 30, 2026and 2025.
For the three months ended June 30,
For the six months ended June 30,
Numerator
2026
2025
2026
2025
Net increase (decrease) in net assets resulting from operations
$
26,528
$
26,158
$
44,999
$
51,017
Less: cumulative preferred stock dividends
(1,226)
(1,482)
(2,452)
(3,168)
Less: changes in carrying value of redeemable securities
(4)
(4)
(9)
(9)
Numerator for EPS - income available to common stockholders
$
25,298
$
24,672
$
42,538
$
47,840
Denominator
Weighted average common shares outstanding basic and diluted
134,526,401
135,118,703
135,004,283
135,356,935
Basic and diluted earnings per share
$
0.19
$
0.18
$
0.32
$
0.35
95
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 June 30, 2026
(Unaudited)
Note 14 - Distributions
The following table reflects the distributions declared on shares of the Company’s Common Stock during the six months ended June 30, 2026:
Date Declared
Record Date
Payment Date
Amount Per Share
For the Six Months Ended June 30, 2026
March 24, 2026
March 24, 2026
March 31, 2026
$0.24
May 11, 2026
May 11, 2026
July 1, 2026
$0.24
The following table reflects the distributions declared on shares of the Company’s Common Stock during the six months ended June 30, 2025:
Date Declared
Record Date
Payment Date
Amount Per Share
For the Six Months Ended June 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
The following table reflects the distributions declared on shares of the Company’s Series A Preferred Stock during the six months ended June 30, 2026:
Date Declared
Record Date
Payment Date
Amount Per Share
For the Six Months Ended June 30, 2026
March 24, 2026
March 24, 2026
March 31, 2026
$15.82
May 11, 2026
May 11, 2026
July 1, 2026
$15.82
The following table reflects the distributions declared on shares of the Company’s Series A Preferred Stock during the six months ended June 30, 2025:
Date Declared
Record Date
Payment Date
Amount Per Share
For the Six Months Ended June 30, 2025
March 10, 2025
March 10, 2025
March 18, 2025
$21.76
May 6, 2025
May 6, 2025
May 15, 2025
$21.76
96
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 June 30, 2026
(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, 2025, 2024, and 2023 federal and state tax returns remain subject to examination by the Internal Revenue Service and state departments of revenue.
As of June 30, 2026, 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 $55.9 million and deferred tax liabilities of $(77.8) 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 June 30, 2026, there was no valuation allowance. 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, 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 $69.8 million and deferred tax liabilities of $(87.6) 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, 2025, deferred tax assets have been offset by valuation allowances of $(4.1) 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.
97
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 June 30, 2026
(Unaudited)
Note 16 - Financial Highlights
The following is a schedule of financial highlights for the six months ended June 30, 2026 and 2025:
For the six months ended June 30,
2026
2025
Per share data:
Net asset value attributable to common stock, beginning of period
$
13.58
$
14.10
Results of operations (1)
Net investment income (loss)
0.52
0.62
Net realized and unrealized gain (loss) on investments, net of change in deferred taxes
(0.19)
(0.24)
Net realized and unrealized gain (loss) on derivatives
0.00 (9)
(0.00) (9)
Net increase (decrease) in net assets resulting from operations attributable to common stockholders and participating securities
0.33
0.38
Accretion to redemption value of Series A redeemable convertible preferred stock (1)
(0.00) (9)
(0.00) (9)
Accrual of Series A redeemable convertible preferred stock distributions (1)
(0.02)
(0.02)
Net increase (decrease) in net assets resulting from operations attributable to common stockholders
0.31
0.36
Stockholder distributions (2)
Common stockholder distributions from net investment income
(0.48)
(0.66)
Net decrease in net assets resulting from stockholder distributions
(0.48)
(0.66)
Other (3)
0.01
(0.01)
Net asset value attributable to common stock, end of period
$
13.42
$
13.79
Common shares outstanding at end of period
133,482,448
134,387,297
Total return (4)
2.34
%
2.43
%
Ratio/Supplemental data attributable to common stock:
Total net assets attributable to common stock, end of period
$
1,790,961
$
1,852,747
Ratio of net investment income to average net assets attributable to common stock (5)
8.52
%
9.94
%
Ratio of total expenses to average net assets attributable to common stock (5)(6)
13.03
%
12.60
%
Ratio of total net expenses to average net assets attributable to common stock (5)(7)
13.03
%
12.60
%
Portfolio turnover rate (8)
8.41
%
13.06
%
(1)The per share data was derived by using the weighted average common shares outstanding during the period.
(2) The per share data for distributions reflects the actual amount of distributions declared per share during the period.
(3) 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.
(4) 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.
98
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 June 30, 2026
(Unaudited)
(5) Ratios are annualized, except for incentive fees and waivers.
(6) 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) 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) 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) 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 six months ended June 30, 2026:
Portfolio Company (1)
Type of Asset
Amount of dividends and interest included in income
Beginning Fair Value at December 31, 2025
Gross additions*
Gross reductions**
Realized Gain/(Loss)
Change in Unrealized Gain (Loss) (6)
Fair Value at June 30, 2026
Control Investments
BCPE Oceandrive Buyer, Inc. (5)
Senior Secured First Lien Debt
$
124
$
—
$
3,441
$
(83)
$
—
$
75
$
3,433
BCPE Oceandrive Buyer, Inc. (5)
Senior Secured First Lien Debt
434
8,307
577
—
—
—
8,884
BCPE Oceandrive Buyer, Inc. (5)
Senior Secured First Lien Debt
193
4,984
346
—
—
—
5,330
BCPE Oceandrive Buyer, Inc. (5)
Senior Secured First Lien Debt
33
—
4,264
(133)
—
215
4,346
BCPE Oceandrive Buyer, Inc.(2)(5)
Equity/Other Investments
—
12,528
—
—
—
1
12,529
FBLC Senior Loan Fund, LLC (3) (5) (7)
Joint Venture
10,040
224,956
—
—
—
(6,749)
218,207
Kahala Aviation, LLC (5)
Subordinated Debt
2,966
33,911
24,829
—
—
250
58,990
Kahala Aviation, LLC (2) (5)
Equity/Other Investments
—
10,330
5,468
—
—
327
16,125
MGTF Radio Company, LLC (4) (5)
Senior Secured First Lien Debt
—
11,408
—
(12,000)
(33,020)
33,612
—
Post Road Equipment Finance, LLC (5) (7)
Equity/Other Investments
5,840
128,252
—
—
—
10,223
138,475
Post Road Equipment Finance, LLC (5) (7)
Subordinated Debt
3,613
62,601
11
—
—
(12)
62,600
Post Road Equipment Finance, LLC (5) (7)
Subordinated Debt
1,632
34,000
14,000
(17,000)
—
—
31,000
Post Road Equipment Finance, LLC (5) (7)
Subordinated Debt
40
—
3,000
(3,015)
—
15
—
Siena Capital Finance, LLC (5)
Equity/Other Investments
5,525
77,728
—
—
—
7,940
85,668
Siena Capital Finance, LLC (5)
Subordinated Debt
5,099
77,500
7,510
(12,500)
(9)
(1)
72,500
Total Control Investments
$
35,539
$
686,505
$
63,446
$
(44,731)
$
(33,029)
$
45,896
$
718,087
Affiliate Investments
Cirque Du Soleil Holding USA Newco, Inc. (2)
Equity/Other Investments
$
—
$
14,632
$
—
$
(14,632)
$
—
$
—
$
—
Coronis Health I, LLC (5)
Senior Secured First Lien Debt
32
532
266
—
—
—
798
Coronis Health I, LLC (5)
Senior Secured First Lien Debt
234
4,225
233
—
—
—
4,458
Coronis Health I, LLC (5)
Senior Secured Second Lien Debt
70
2,751
69
—
—
—
2,820
Coronis Health I, LLC (2)(5)
Equity/Other Investments
—
4,900
—
—
—
—
4,900
99
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 June 30, 2026
(Unaudited)
Portfolio Company (1)
Type of Asset
Amount of dividends and interest included in income
NewStar Arlington Senior Loan Program, LLC 14-1A SUB (5)
Collateralized Securities
—
—
—
—
—
183
183
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB (5)
Collateralized Securities
—
477
—
(12)
—
2
467
ORG GC Holdings, LLC (5)
Senior Secured First Lien Debt
530
10,111
(1)
—
—
2
10,112
ORG GC Holdings, LLC (2)(5)
Equity/Other Investments
—
—
—
—
—
—
—
ORG GC Holdings, LLC (5)
Senior Secured Second Lien Debt
—
2,810
—
—
—
(377)
2,433
ORG GC Holdings, LLC (2)(5)
Equity/Other Investments
—
—
—
—
—
—
—
PennantPark Credit Opportunities Fund II, LP (2)
Equity/Other Investments
—
552
—
—
—
101
653
Tennenbaum Waterman Fund, LP (2)
Equity/Other Investments
—
461
—
—
—
(69)
392
Total Affiliate Investments
$
1,259
$
49,827
$
595
$
(18,738)
$
79
$
(1,299)
$
30,464
Total Control & Affiliate Investments
$
36,798
$
736,332
$
64,041
$
(63,469)
$
(32,950)
$
44,597
$
748,551
—–—–—–—–—–
* 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.
** 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 June 30, 2026.
(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 June 30, 2026.
(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 $(23) thousand.
(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.
100
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 June 30, 2026
(Unaudited)
Dividends and interest for the six months ended June 30, 2026 attributable to Controlled and Affiliated investments no longer held as of June 30, 2026 were $7.9 thousand.
Realized gain (loss) for the six months ended June 30, 2026 attributable to Controlled and Affiliated investments no longer held as of June 30, 2026 was $(32.9) million.
Change in unrealized gain (loss) for the six months ended June 30, 2026 attributable to Controlled and Affiliated investments no longer held as of June 30, 2026 was $33.6 million.
The following table presents the Schedule of Investments and Advances to Affiliates for the year ended December 31, 2025:
Portfolio Company (1)
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) (7)
Fair Value at December 31, 2025
Control Investments
BCPE Oceandrive Buyer, Inc. (5)
Senior Secured First Lien Debt
$
12
$
—
$
169
$
(246)
$
(86)
$
163
$
—
BCPE Oceandrive Buyer, Inc. (5)
Senior Secured First Lien Debt
146
—
8,307
—
—
—
8,307
BCPE Oceandrive Buyer, Inc. (5)
Senior Secured First Lien Debt
235
—
10,109
(5,373)
248
—
4,984
BCPE Oceandrive Buyer, Inc. (5)
Equity/Other Investments
—
—
12,528
—
—
—
12,528
BCPE Oceandrive Buyer, Inc. (4) (5)
Senior Secured First Lien Debt
—
—
—
—
—
—
—
Danish CRJ, Ltd. (2) (4) (5)
Equity/Other Investments
—
—
—
—
—
—
—
FBLC Senior Loan Fund, LLC (3) (5) (7)
Joint Venture
27,380
404,934
—
(179,978)
(296)
296
224,956
Kahala Aviation, LLC (5)
Subordinated Debt
3,360
—
33,874
—
—
37
33,911
Kahala Aviation, LLC (2) (5)
Equity/Other Investments
—
2,308
7,545
—
—
477
10,330
Kahala Ireland Opco DAC (5)
Subordinated Debt
—
—
—
—
—
—
—
Kahala US OpCo, LLC (2) (4) (5)
Equity/Other Investments
83
—
—
—
—
—
—
MGTF Holdco, LLC (2) (5)
Equity/Other Investments
—
—
—
—
—
—
—
MGTF Radio Company, LLC (5)
Senior Secured First Lien Debt
1,116
31,672
103
—
—
(20,367)
11,408
Post Road Equipment Finance, LLC (5) (7)
Equity/Other Investments
11,274
119,233
8,926
—
—
93
128,252
Post Road Equipment Finance, LLC (5) (7)
Subordinated Debt
7,595
62,599
(2)
—
—
4
62,601
Post Road Equipment Finance, LLC (5) (7)
Subordinated Debt
3,864
35,000
23,000
(24,000)
—
—
34,000
Post Road Equipment Finance, LLC (5) (7)
Subordinated Debt
190
3,000
10,000
(13,050)
—
50
—
Siena Capital Finance, LLC (5)
Equity/Other Investments
13,727
77,310
—
—
—
418
77,728
Siena Capital Finance, LLC (5)
Subordinated Debt
7,109
49,500
27,990
—
—
10
77,500
WPNT, LLC (2) (5)
Equity/Other Investments
—
—
—
—
—
—
—
Total Control Investments
$
76,091
$
785,556
$
142,549
$
(222,647)
$
(134)
$
(18,819)
$
686,505
Affiliate Investments
Cirque Du Soleil Holding USA Newco, Inc. (2)
Equity/Other Investments
$
—
$
—
$
17,441
$
—
$
—
$
(2,809)
$
14,632
Coronis Health I, LLC (5)
Senior Secured First Lien Debt
37
—
532
—
—
—
532
Coronis Health I, LLC (5)
Senior Secured First Lien Debt
311
—
4,225
—
—
—
4,225
101
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 June 30, 2026
(Unaudited)
Portfolio Company (1)
Type of Asset
Amount of dividends and interest included in income
NewStar Arlington Senior Loan Program, LLC 14-1A SUB (5)
Collateralized Securities
(88)
2,170
—
—
—
(2,170)
—
Newstar Fairfield Fund CLO, Ltd. 2015-1RA F (4) (5)
Collateralized Securities
17
2,457
3
(2,457)
137
(140)
—
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB (5)
Collateralized Securities
—
1,208
—
—
—
(731)
477
ORG GC Holdings, LLC (5)
Senior Secured First Lien Debt
1,124
10,112
(3)
—
—
2
10,111
ORG GC Holdings, LLC (5)
Equity/Other Investments
—
—
—
—
—
—
—
ORG GC Holdings, LLC (5)
Senior Secured Second Lien Debt
576
4,999
578
—
—
(2,767)
2,810
ORG GC Holdings, LLC (4) (5)
Equity/Other Investments
—
—
—
—
—
—
—
ORG GC Holdings, LLC (2) (5)
Equity/Other Investments
—
—
—
—
—
—
—
PennantPark Credit Opportunities Fund II, LP (2)
Equity/Other Investments
—
603
—
—
—
(51)
552
Tennenbaum Waterman Fund, LP
Equity/Other Investments
—
5,802
—
(5,020)
—
(321)
461
Total Affiliate Investments
$
2,996
$
35,596
$
30,865
$
(8,345)
$
15
$
(8,304)
$
49,827
Total Control & Affiliate Investments
$
79,087
$
821,152
$
173,414
$
(230,992)
$
(119)
$
(27,123)
$
736,332
—–—–—–—–—–
* 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.
** 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 December 31, 2025.
102
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 June 30, 2026
(Unaudited)
(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, 2025.
(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 $(6.1) 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.
Dividends and interest for the year ended December 31, 2025 attributable to Controlled and Affiliated investments no longer held as of December 31, 2025 were $117.1 thousand.
Realized gain (loss) for the year ended December 31, 2025 attributable to Controlled and Affiliated investments no longer held as of December 31, 2025 was $15.2 thousand.
Change in unrealized gain (loss) for the year ended December 31, 2025 attributable to Controlled and Affiliated investments no longer held as of December 31, 2025 was $(20.1) thousand.
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 Operating 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.
103
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 June 30, 2026
(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.
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
$
1,594,261
Transaction costs
4,623
Consideration Paid
$
1,598,884
Investments
$
2,814,321
Cash and cash equivalents
58,478
Other Assets
48,585
Total Assets Acquired
$
2,921,384
Debt
$
1,286,190
Other Liabilities
40,933
Total liabilities acquired
$
1,327,123
Total net assets acquired
$
1,594,261
104
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 June 30, 2026
(Unaudited)
Note 20 - Subsequent Events
Distribution Declarations
On August 10, 2026, our Board of Directors declared a regular quarterly distribution of $0.24 per share of Common Stock, which will be paid on or around September 30, 2026 to stockholders of record as of September 24, 2026.
On August 10, 2026, our Board of Directors declared a distribution of $15.82 per share of Series A Preferred Stock, which will be paid on or around September 30, 2026 to stockholders of record as of September 24, 2026.
2030 Notes Exchange
Pursuant to a Registration Statement on Form N-14 (File No. 333-296000), on July 6, 2026, holders of the 2030 Notes were offered the opportunity to exchange their 2030 Notes for new registered notes with substantially identical terms (the “Unrestricted 2030 Notes”), through which holders representing 99.99% of the outstanding principal of the then 2030 Notes obtained Unrestricted 2030 Notes on July 31, 2026.
105
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:
•our future operating results;
•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;
•the impact of geo-political conditions, including revolution, insurgency, terrorism or war, including those arising out of the ongoing conflicts in the Middle East, Central and South America and Eastern Europe;
•the impact of the investments that we expect to make;
•the ability of our portfolio companies to achieve their objectives;
•our contractual arrangements and relationships with third parties;
•our expected financings and investments;
•the adequacy of our cash resources and working capital;
•the timing of cash flows, if any, from the operations of our portfolio companies;
•our repurchase of shares;
•actual and potential conflicts of interest with our Adviser (as defined below) and its affiliates;
•the dependence of our future success on the general economy and its effect on the industries in which we invest;
•the ability to qualify and maintain our qualifications as a regulated investment company (“RIC”) and a business development company (“BDC”);
•the timing, form, and amount of any distributions;
•the impact of fluctuations in interest rates on our business;
•the valuation of any investments in portfolio companies, particularly those having no liquid trading market;
•the impact of changes to generally accepted accounting principles;
106
•the impact of changes to tax legislation and, generally, our tax position;
•the ability of our Adviser to locate suitable investments for us and to monitor and administer our investments;
•the ability of our Adviser and its affiliates to attract and retain highly talented professionals;
•the ability to realize the anticipated benefits of the Mergers (as defined below);
•the effects of disruption on our business from the Mergers; and
•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 earnings before interest, taxes, depreciation, and amortization (“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 June 30, 2026, 80.0% 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 June 30, 2026, 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 June 30, 2026, total Preferred Capital Commitments of Series A Preferred Stock were $77.5 million.
107
Financial and Operating Highlights
(Dollars in thousands, except per share amounts)
At June 30, 2026:
Investment Portfolio
$
4,079,384
Net assets attributable to common stock
1,790,961
Debt (net of deferred financing costs)
2,199,450
Net asset value per share attributable to common stock
13.42
Portfolio Activity for the Six Months Ended June 30, 2026:
Purchases during the period
364,103
Sales, repayments, and other exits during the period
341,995
Number of portfolio companies at end of period
151
Operating Results for the Six Months Ended June 30, 2026:
Net investment income (loss) per share
0.52
Net increase (decrease) in net assets per share resulting from operations attributable to common stockholders and participating securities
0.33
Net investment income (loss)
69,782
Net realized and unrealized gain (loss)
(24,783)
Net increase (decrease) in net assets resulting from operations attributable to common stockholders
42,538
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 six months ended June 30, 2026, we made $364.1 million of investments in portfolio companies and had $342.0 million in aggregate amount of sales and repayments, resulting in net investments of $22.1 million for the period. The total portfolio of debt investments at fair value consisted of 93.5% bearing variable interest rates and 6.5% bearing fixed interest rates.
108
Our portfolio composition, based on fair value at June 30, 2026 was as follows:
June 30, 2026
Percentage of
Total Portfolio(1)
Weighted Average Current Yield for Total Portfolio (2)
Senior Secured First Lien Debt
76.3
%
9.3
%
Senior Secured Second Lien Debt
3.7
11.9
Subordinated Debt
6.8
10.3
Debt Subtotal
86.8
%
9.5
%
Collateralized Securities (3)
0.1
18.9
Equity/Other (4)
7.8
7.5
FBLC Senior Loan Fund LLC (4)
5.3
9.3
Total
100.0
%
9.3
%
(1) As of June 30, 2026, FBLC Senior Loan Fund, LLC's holdings consisted of 93.2% senior secured debt, of which 91.8% represented senior secured first lien debt. As of June 30, 2026, we held investments in Siena Capital Finance, LLC ("Siena") consisting of subordinated debt and equity, which represented 1.8% and 2.1% of our total portfolio, respectively. As of June 30, 2026, we held investments in Post Road Equipment Finance, LLC (“Post Road”) consisting of subordinated debt and equity, which represented 2.3% and 3.4% 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 June 30, 2026 would be as follows:
June 30, 2026
Percentage of Total Portfolio
Senior Secured First Lien Debt
90.9
%
Senior Secured Second Lien Debt
3.6
Senior Secured - Subtotal
94.5
%
Subordinated Debt
2.5
Collateralized Securities
0.4
Equity/Other
2.6
Total
100.0
%
(2) Includes the effect of the amortization or accretion of loan premiums or discounts.
(3) 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).
(4) Weighted average current yield for Equity/Other may be based on actual or annualized income, where applicable.
During the year ended December 31, 2025, we made $1.1 billion of investments in portfolio companies and had $965.8 million in aggregate amount of sales and repayments, resulting in net investments of $128.7 million for the period. The total portfolio of debt investments at fair value consisted of 94.0% bearing variable interest rates and 6.0% bearing fixed interest rates.
109
Our portfolio composition, based on fair value at December 31, 2025 was as follows:
December 31, 2025
Percentage of
Total Portfolio(1)
Weighted Average Current Yield for Total Portfolio (2)
Senior Secured First Lien Debt
77.1
%
9.4
%
Senior Secured Second Lien Debt
3.7
12.6
Subordinated Debt
6.4
11.8
Debt Subtotal
87.2
%
9.7
%
Collateralized Securities (3)
0.1
17.5
Equity/Other (4)
7.2
8.8
FBLC Senior Loan Fund LLC (4)
5.5
9.0
Total
100.0
%
9.6
%
(1) As of December 31, 2025, FBLC Senior Loan Fund, LLC's holdings consisted of 94.2% senior secured debt, of which 92.0% represented senior secured first lien debt. As of December 31, 2025, we held investments in Siena Capital Finance, LLC ("Siena") consisting of subordinated debt and equity, which represented 1.9% and 1.9% of our total portfolio, respectively. As of December 31, 2025, we held investments in Post Road Equipment Finance, LLC (“Post Road”) consisting of subordinated debt and equity, which represented 2.4% and 3.2% 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, 2025 would be as follows:
December 31, 2025
Percentage of Total Portfolio
Senior Secured First Lien Debt
91.5
%
Senior Secured Second Lien Debt
3.7
Senior Secured - Subtotal
95.2
%
Subordinated Debt
2.0
Collateralized Securities
0.5
Equity/Other
2.3
Total
100.0
%
(2) Includes the effect of the amortization or accretion of loan premiums or discounts.
(3) 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).
(4) Weighted average current yield for Equity/Other may be based on actual or annualized income, where applicable.
110
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.
Loan Rating
Summary Description
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 and 2.1 as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, we had eleven portfolio companies on non-accrual status with a total amortized cost of $112.7 million and fair value of $68.3 million, which represented 2.7% and 1.7% of the investment portfolio's total amortized cost and fair value, respectively. As of December 31, 2025, we had eight portfolio companies on non-accrual status with a total amortized cost of $100.3 million and fair value of $46.5 million, which represented 2.4% and 1.1% of the investment portfolio's total amortized cost and fair value, respectively. Refer to Note 2 - Summary of Significant Accounting Policies 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. On October 15, 2025, SLF distributed $80.0 million to the Company as a return of capital. As of June 30, 2026, 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 June 30, 2026, our investment in SLF consisted of equity contributions of $225.0 million. Our investment in SLF is classified as “Equity/Other” on the consolidated schedules of investments, and other disclosures unless otherwise indicated.
111
Below is a summary of SLF’s portfolio as of June 30, 2026 and December 31, 2025. A listing of the individual investments in SLF’s portfolio as of such dates can be found in Note 3 – Fair Value of Financial Instruments in the notes to the accompanying consolidated financial statements (dollars in thousands):
June 30, 2026
December 31, 2025
Total assets
$
721,472
$
751,516
Total investments (1)
$
679,825
$
704,292
Weighted Average Current Yield for Total Portfolio (2)
8.0%
7.9%
Number of Portfolio companies in SLF
149
139
Largest portfolio company investment (1)
$
17,528
$
13,952
Total of five largest portfolio company investments (1)
$
64,733
$
62,136
(1) At fair value.
(2) Includes the effect of the amortization or accretion of loan premiums or discounts.
Below is certain summarized financial information for SLF as of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Selected Statements of Assets and Liabilities Information
June 30,
December 31,
2026
2025
ASSETS
Investments, at fair value (amortized cost of $717,633 and $733,390, respectively)
$
679,825
$
704,292
Cash and other assets
41,647
47,224
Total assets
$
721,472
$
751,516
LIABILITIES
Revolving credit facilities (net of deferred financing costs of $1,107 and $1,445, respectively)
$
441,393
$
450,555
Secured borrowings
461
599
Other liabilities
23,678
22,715
Total Liabilities
$
465,532
$
473,869
MEMBERS’ CAPITAL
Total members’ capital
$
255,940
$
277,647
Total liabilities and members’ capital
$
721,472
$
751,516
112
Selected Statements of Operations Information
For the three months ended June 30,
For the six months ended June 30,
2026
2025
2026
2025
Investment income:
Total investment income
$
13,193
$
20,787
$
27,343
$
43,584
Operating expenses:
Interest and credit facility financing expenses
6,558
8,949
13,208
18,047
Other expenses
541
604
1,167
1,214
Total expenses
7,099
9,553
14,375
19,261
Net investment income
6,094
11,234
12,968
24,323
Realized and unrealized gain (loss) on investments and extinguishment of debt:
Net realized and unrealized gain (loss) on investments and extinguishment of debt
(2,923)
(1,145)
(22,023)
(13,011)
Net increase (decrease) in members’ capital resulting from operations
$
3,171
$
10,089
$
(9,055)
$
11,312
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 payment-in-kind (“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.
113
Expenses
We will bear all out-of-pocket costs and expenses of our operations and transactions, including, but not limited to:
•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;
•the cost of calculating our net asset value (“NAV”); the cost of effecting sales and repurchases of shares of our Common Stock and other securities;
•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);
•expenses related to consummated or unconsummated investments, including dead deal or broken deal expenses; rating agency expenses; fees to arrange our debt financings;
•distributions on our shares; administration fees payable under the Administration Agreement;
•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;
•federal and state registration fees; any exchange listing fees; federal, state, local, and other taxes;
•costs and expenses incurred in relation to compliance with applicable laws and regulations and our operation and administration generally;
•independent directors’ fees and expenses;
•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;
•expenses relating to the development and maintenance of our website, if any; other operations and technology costs;
•direct costs and expenses of administration, including printing, mailing, copying, telephone, fees of independent accountants and outside legal costs; and
•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.
114
Our operating results for the three and six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
For the three months ended June 30,
For the six months ended June 30,
2026
2025
2026
2025
Total investment income
$
96,412
$
103,415
$
194,627
$
210,932
Total expenses
62,644
62,740
124,166
124,978
Income tax expense, including excise tax
535
1,095
679
1,450
Net investment income (loss)
$
33,233
$
39,580
$
69,782
$
84,504
Investment Income
Investment income decreased from $103.4 million for the three months ended June 30, 2025 to $96.4 millionfor the three months ended June 30, 2026due to lower SOFR rates. Investment income decreased from $210.9 million for the six months ended June 30, 2025 to $194.6 million for the six months ended June 30, 2026 due to lower SOFR rates. PIK income from investments decreased from $6.5 million for the three months ended June 30, 2025 to $3.0 million for the three months ended June 30, 2026. PIK income from investments decreased from $10.3 million for the six months ended June 30, 2025 to $6.9 million for the six months ended June 30, 2026. Fee and other income, included within total investment decreased from $0.9 million for the three months ended June 30, 2025 to $0.2millionfor the three months ended June 30, 2026. Fee and other income, included within total investment income, decreased from $1.6 million for the six months ended June 30, 2025, to $0.6 million for the six months ended June 30, 2026. Dividend income, included within total investment income, decreased from $12.7 million for the three months ended June 30, 2025 to $11.1 million for the three months ended June 30, 2026. Dividend income, included within total investment income, decreased from $29.3 million for the six months ended June 30, 2025, to $22.1million for the six months ended June 30, 2026.
Operating Expenses
The composition of our operating expenses for the three and six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
For the three months ended June 30,
For the six months ended June 30,
2026
2025
2026
2025
Management fees
$
14,941
$
15,231
$
29,873
$
30,216
Incentive fee on income
6,756
7,934
14,193
16,930
Interest and debt fees
36,398
34,889
70,964
68,741
Professional fees
2,071
1,784
3,946
3,918
Other general and administrative
2,028
2,448
4,266
4,241
Administrative services
207
211
423
431
Directors' fees
243
243
501
501
Expenses
$
62,644
$
62,740
$
124,166
$
124,978
Management Fees
Management Fees decreased from $15.2 million for the three months ended June 30, 2025 to $14.9 million for the three months ended June 30, 2026.Management Fees decreased from$30.2 million for the six months ended June 30, 2025 to $29.9million for the six months ended June 30, 2026. The decrease in Management Fees for the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026 is attributable to a decrease in average gross assets. In addition, a greater portion of average gross assets as of June 30, 2026 as compared to as of June 30, 2025 was financed with borrowings above 1.0x debt-to-equity and therefore was subject to the lower annual management fee rate of 1.00%, rather than the 1.50% annual rate otherwise applicable.
115
Incentive Fees
Incentive Fees decreased from $7.9 million for the three months ended June 30, 2025 to $6.8 million for the three months ended June 30, 2026. Incentive Fees decreased from $16.9 million for the six months ended June 30, 2025 to $14.2 million for the six months ended June 30, 2026. The decrease in Incentive Fees from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026 was driven by lower SOFR rates which resulted in a decrease in pre-incentive fee net investment income.
Interest and Debt Fees
Interest and debt fees increased from $34.9 million for the three months ended June 30, 2025 to $36.4 million for the three months ended June 30, 2026. Interest and debt fees increased from $68.7 million for the six months ended June 30, 2025 to $71.0 million for the six months ended June 30, 2026. The increase for the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026was primarily driven by the increase in the average daily debt outstanding for facility borrowings and unsecured notes partially offset by a lower weighted average annualized interest cost of the facility borrowings and unsecured notes. The average daily debt outstanding for the six months ended June 30, 2025 was $2.1 billion compared to $2.2 billion for the six months ended June 30, 2026. The weighted average annualized interest cost of the facility borrowings and unsecured notes for the six months ended June 30, 2025 and 2026 were 6.20% and 5.99%, respectively.
Professional Fees and Other General and Administrative Expenses
Professional fees and other general and administrative expenses decreased from $4.2 million for the three months ended June 30, 2025 to $4.1 million for the three months ended June 30, 2026. Professional fees and other general and administrative expenses amounted to $8.2 million for the six months ended June 30, 2025 and $8.2 million for the six months ended June 30, 2026. The professional fees and other general and administrative expenses for the three and six months ended June 30, 2025 remained relatively consistent compared to the three and six months ended June 30, 2026.
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 three and six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
For the three months ended June 30,
For the six months ended June 30,
2026
2025
2026
2025
Net realized gain (loss)
Control Investments
$
(9)
$
—
$
(33,029)
$
(164)
Affiliate Investments
526
—
79
137
Non-Affiliated Investments
(1,735)
(11,509)
(1,066)
(8,019)
Net realized gain (loss) on derivatives
(21)
17
(40)
6
Total net realized gain (loss)
$
(1,239)
$
(11,492)
$
(34,056)
$
(8,040)
Net change in unrealized appreciation (depreciation) on investments
Control Investments
$
7,933
$
(5,751)
$
45,896
$
(11,392)
Affiliate Investments
(865)
(938)
(1,299)
(2,511)
Non-Affiliated Investments
(9,701)
6,554
(35,592)
(7,464)
Net change in deferred taxes
(2,981)
(1,684)
(23)
(3,731)
Net change in unrealized appreciation (depreciation) on derivatives
148
(111)
291
(349)
Total net change in unrealized appreciation (depreciation) on investments
$
(5,466)
$
(1,930)
$
9,273
$
(25,447)
Net realized and unrealized gain (loss)
$
(6,705)
$
(13,422)
$
(24,783)
$
(33,487)
116
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 June 30, 2026,we recorded a net realized loss of $1.2 million.For the six months ended June 30, 2026, we recorded a net realized loss of $34.1 million. The net realized loss for the six months ended June 30, 2026, was primarily driven by one portfolio company. In January 2026, we sold our first lien debt position of MGTF Radio Company, LLC which resulted in a net realized loss of $33.0 million and a corresponding unrealized gain of $33.6 million from the reversal of previously recognized unrealized depreciation.
For the three months ended June 30, 2025,we recorded a net realized loss of $11.5 million. For the six months ended June 30, 2025, we recorded a net realized loss of $8.0 million. The net realized loss for the six months ended June 30, 2025, was primarily driven by one portfolio company. 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 and a corresponding unrealized gain of $14.8 million from the reversal of previously recognized unrealized depreciation.
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 June 30, 2026 we recorded unrealized appreciation of $20.2 million on 40 portfolio company investments, which was offset by $22.8 million of unrealized depreciation on 101 portfolio company investments. The unrealized depreciation primarily resulted from deteriorating credit performance of certain portfolio companies, including FBLC Senior Loan Fund, LLC and Aventine Holdings, LLC, which resulted in unrealized losses of $4.5 million and $3.5 million, respectively. These declines were partially offset by a $10.2 million unrealized gain on Post Road Equipment Finance, LLC. In addition, $3.0 million of the net unrealized loss was driven by a change in deferred taxes.
For the three months ended June 30, 2025 we recorded unrealized appreciation of $21.1 million on 116 portfolio company investments, which was offset by $21.3 million of unrealized depreciation on 246 portfolio company investments. The unrealized depreciation primarily resulted from deteriorating credit performance of certain portfolio companies offset by the restructure of Coronis Health LLC. The unrealized depreciation was primarily due to isolated deterioration in the credit performance of a small number of portfolio companies. MGTF Radio Company, LLC and Saturn SHC Buyer Holdings, Inc. had their valuations lowered, which resulted in an unrealized loss of $6.6 million and $3.2 million, respectively. $1.7 million of the net unrealized loss was driven by a change in deferred taxes.
For the six months ended June 30, 2026, we recorded unrealized appreciation of $70.4 million on 44 portfolio company investments which was offset by $61.4 million of unrealized depreciation on 106 portfolio company investments. The unrealized appreciation primarily resulted from improved performance of certain portfolio companies and the reversal of previously recorded unrealized depreciation including MGTF Radio Company, LLC which resulted in a net realized loss of $33.0 million offset by an unrealized gain of $33.6 million. The unrealized depreciation was primarily due to isolated deterioration in the credit performance of a small number of portfolio companies. The overall net unrealized appreciation on our portfolio was primarily driven by the reversal of previously recorded unrealized depreciations on MGTF Radio Company, LLC.
For the six months ended June 30, 2025, we recorded unrealized appreciation of $32.1 million on 116 portfolio company investments, which was offset by $53.8 million of unrealized depreciation on 246 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. $3.7 million of the net unrealized loss was driven by a change in deferred taxes. Additionally, $0.3 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.
117
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 June 30,
For the six months ended June 30,
2026
2025
2026
2025
Net investment income (loss)
$
33,233
$
39,580
$
69,782
$
84,504
Less: purchase premium and other cost adjustments (1)
(156)
(488)
(412)
(1,312)
Adjusted net investment income after taxes
$
33,077
$
39,092
$
69,370
$
83,192
Net realized and unrealized gains (losses)
$
(6,705)
$
(13,422)
$
(24,783)
$
(33,487)
Less: Net change in unrealized appreciation (depreciation) due to the purchase premium and other cost adjustments (1)
834
878
3,522
2,589
Less: Realized gain (loss) due to the purchase premium and other cost adjustments (1)
(678)
(390)
(3,110)
(1,277)
Adjusted net realized and unrealized gains (losses)
$
(6,549)
$
(12,934)
$
(24,371)
$
(32,175)
(1) 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, 2026 to June 30, 2026 and January 1, 2025 to June 30, 2025, respectively.
118
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 six months ended June 30, 2026 and 2025 (dollars in thousands):
For the six months ended June 30,
2026
2025
Distributions declared
$
64,553
$
89,645
Distributions paid
$
32,517
$
89,645
Portion of distributions paid in cash
$
25,661
$
70,362
Portion of distributions paid in DRIP shares
$
6,856
$
19,283
The table shows the components of the distributions we have declared and/or paid to preferred stockholders during the six months ended June 30, 2026 and 2025 (dollars in thousands):
For the six months ended June 30,
2026
2025
Distributions declared
$
2,452
$
3,373
Distributions paid
$
1,226
$
3,373
Portion of distributions paid in cash
$
1,226
$
3,373
Portion of distributions paid in DRIP shares
$
—
$
—
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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 six months ended June 30, 2026 and 2025, 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 ended December 31, 2026 are reported to stockholders shortly after the end of the calendar year 2026 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.
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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 six months ended June 30, 2026, we incurred $0.9 million and $1.7 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 six months ended June 30, 2025, we incurred $0.7 million and $1.4 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.
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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 June 30, 2026, the aggregate principal amount outstanding of the senior securities issued by us was $2.3 billion and our asset coverage was 178%. 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%.
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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.
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, JPMorgan 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 (the “Fourth Wells Fargo Credit Facility Amendment”), the spread was reduced to 2.15% per annum from 2.75% per annum. The loan and servicing agreement was further amended on April 10, 2026 (the “Fifth Wells Fargo Credit Facility Amendment”), and such amendment, among other things, (i) increased the facility amount from $300.0 million to $400.0 million, (ii) reduced the spread on borrowings from 2.15% to 1.95% per annum, (iii) extended the maturity date from August 25, 2028 to April 10, 2031, (iv) extended the reinvestment period from August 25, 2026 to April 10, 2029 and (v) reduced the non-usage fee to (a) 0.35% per annum on the unused balance through July 10, 2026, (b) 0.50% per annum on the unused balance between July 10, 2026 and January 10, 2027, and (c) thereafter, (1) 0.50% per annum for any unused balance up to or equal to 70.0% of the then current facility amount and (2) 1.50% per annum for any unused balance in excess of 70% of the facility amount. Interest is payable quarterly in arrears.
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.
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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 were subject to customary indemnification provisions and representations, warranties and covenants. The 2026 Notes bore interest at a rate of 3.25% per year payable semi-annually.
The 2026 Notes were paid off upon maturity on March 30, 2026.
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.
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.
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2030 Notes
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 $300.0 million aggregate principal amount of its 6.00% 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 6.00% 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. See Recent Developments below for additional information about the exchange offer.
In connection with the 2030 Notes, the Company entered into an interest rate swap to more closely align the interest rates of the Company’s liabilities with the Company’s investment portfolio, which consists of predominantly floating rate loans. Under the interest rate swap agreement related to the 2030 Notes, the Company receives a fixed interest rate of 6.00% per annum and pays a floating interest rate of SOFR + 2.515% per annum on $300 million of the 2030 Notes. The Company designated the interest rate swap as the hedging instrument in a qualifying hedge accounting relationship. The carrying value of the 2030 Notes is inclusive of an adjustment for the change in fair value of an effective hedge accounting relationship. Please see “Note 6. Derivatives” for additional detail.
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.
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Contractual Obligations
The following table shows our payment obligations for repayment of debt and other contractual obligations as of June 30, 2026 (dollars in thousands):
Payment Due by Period
Total
Less than 1 year
1 - 3 years
3 - 5 years
More than 5 years
JPM Credit Facility (1)
$
945,532
$
—
$
—
$
945,532
$
—
JPM Revolver Facility (2)
307,678
—
—
307,678
—
Wells Fargo Credit Facility (3)
272,236
—
—
272,236
—
2029 Notes
398,937
—
398,937
—
—
2030 Notes (4)
291,347
—
—
291,347
—
Total
$
2,215,730
$
—
$
398,937
$
1,816,793
$
—
—–—–—–—–—–
(1) As of June 30, 2026, we had $104.5 million in unused borrowing capacity under the JPM Credit Facility, subject to borrowing base limits.
(2) As of June 30, 2026, we had $472.3 million in unused borrowing capacity under the JPM Revolver Facility, subject to borrowing base limits.
(3) As of June 30, 2026, we had $127.8 million in unused borrowing capacity under the Wells Fargo Credit Facility, subject to borrowing base limits.
(4) The carrying value of the 2030 Notes is inclusive of an adjustment for the change in fair value of an effective hedge accounting relationship. See Note 5 for additional information.
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 June 30, 2026 and December 31, 2025, we had unfunded commitments of $678.3million and $701.3 million, respectively. We maintain sufficient cash on hand, and available borrowings to fund such unfunded commitments. Please refer to Note 7 - Commitments and Contingencies 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, 2025.
While our significant accounting policies are also described in Note 2 - Summary of Significant Accounting Policies 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.
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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:
•the estimated enterprise value of a portfolio company;
•indicative dealer quotes;
•the nature and realizable value of any collateral;
•the portfolio company’s ability to make payments based on its earnings and cash flow;
•the markets in which the portfolio company does business;
•a comparison of the portfolio company’s securities to any similar publicly traded securities; and
•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:
•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;
•The independent valuation firm(s) conduct independent appraisals and make an independent assessment of the value of each investment; and
•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.
On August 10, 2026, our Board of Directors declared a regular quarterly distribution of $0.24 per share of Common Stock, which will be paid on or around September 30, 2026 to stockholders of record as of September 24, 2026.
On August 10, 2026, our Board of Directors declared a distribution of $15.82 per share of Series A Preferred Stock, which will be paid on or around September 30, 2026 to stockholders of record as of September 24, 2026.
2030 Notes Exchange
Pursuant to a Registration Statement on Form N-14 (File No. 333-296000), on July 6, 2026, holders of the 2030 Notes were offered the opportunity to exchange their 2030 Notes for new registered notes with substantially identical terms (the “Unrestricted 2030 Notes”), through which holders representing 99.99% of the outstanding principal of the then 2030 Notes obtained Unrestricted 2030 Notes on July 31, 2026.
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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 June 30, 2026, we had 133.5 million shares of Common Stock outstanding, representing aggregate 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 June 30, 2025, we had 134.4 million shares of Common Stock outstanding, representing aggregate 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 June 30, 2026, we had $45.1 million of cash. For the six months ended June 30, 2026, net cash provided by operating activities was $28.4 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 provided by operating activities for the six months ended June 30, 2026 was a result of sales and repayments of investments of $342.0 million, offset by purchases of investments of $364.1 million. As of June 30, 2025, we had $121.4 million of cash. For the six months ended June 30, 2025, net cash used in operating activities was $96.4 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 six months ended June 30, 2025 was primarily a result of purchases of investments of $653.1 million, offset by sales and repayments of investments of $520.7 million.
Net cash used in financing activities of $104.0 million during the six months ended June 30, 2026 primarily related to payments on debt of $592.9 million, repurchase of common stock of $34.0 million, common stockholder distributions of $25.7 million, and preferred stockholder distributions of $1.2 million offset by proceeds from debt of $553.1 million. Net cash provided by financing activities of $87.0 million during the six months ended June 30, 2025 primarily related to repayments of secured borrowings of $29.1 million, payments on debt of $329.3 million, payments of financing costs of $5.3 million, common stockholder distributions of $70.4 million, and preferred stockholder distributions of $3.4 millionpartially offset by proceeds from debt of $559.3 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 June 30, 2026, we are party to the JPM and Wells Fargo Credit Facilities, which are defined in and described in more detail in Note 5 - 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 June 30, 2026, our asset coverage ratio was 178%.
As of June 30, 2026, we had $704.6 million of availability under the JPM Credit Facility, JPM Revolver Facility, and Wells Fargo Credit Facility (subject to borrowing base availability). As of June 30, 2025, we had $535.1 million of availability under the JPM Credit Facility, JPM Revolver Facility, and Wells Fargo Credit Facility (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.
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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 June 30, 2026, our debt included variable-rate debt, bearing a weighted average interest rate of SOFR plus 2.08% and a fixed rate debt, bearing a weighted average interest rate of 6.84% with a total carrying value (net of deferred financing costs) of $2.2 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)
(-) 373 Basis Points
$
(69,591)
(-) 200 Basis Points
$
(37,277)
(-) 100 Basis Points
$
(18,639)
(-) 50 Basis Points
$
(9,319)
(+) 50 Basis Points
$
9,319
(+) 100 Basis Points
$
18,639
(+) 200 Basis Points
$
37,277
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.
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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 Principal 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 Principal 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.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As of June 30, 2026, 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, 2025. 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
The following table sets forth information regarding our repurchases of shares of Common Stock during the quarter ended June 30, 2026:
Repurchase Request Deadline (1)
Total Number of Shares Repurchased (1)
Percentage of Outstanding Common Stock Repurchased (2)
Price Paid Per Share
Repurchase Pricing Date
Amount Repurchased (1)
Maximum number of shares that may yet be purchased under the repurchase plan (1)
April 14, 2026
2,499,996
1.84
%
$
13.58
December 31, 2025
$
33,949.95
—
(1) On March 5, 2026, we commenced a tender offer to repurchase up to 2,500,000 shares of our Common Stock. On May 8, 2026, we repurchased 2,499,996 shares of Common Stock as set forth in the table above. For a description of our Share Repurchase Program, see Note 12 — Share Repurchase Program to the consolidated financial statements.
(2)Percentage is based on total shares as of the close of the previous calendar quarter.
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 June 30, 2026, 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).
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ITEM 6. EXHIBITS
The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the six months ended June 30, 2026 (and are numbered in accordance with Item 601 of Regulation S-K).
Cover Page Interactive Data File (embedded within the Inline XBRL document).
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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
/s/ Richard J. Byrne
Richard J. Byrne
Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer)
August 12, 2026
/s/ Kathleen L. Oates
Kathleen L. Oates
Chief Accounting Officer and Treasurer (Principal Financial and Accounting Officer)