<SEC-DOCUMENT>0001193125-17-316608.txt : 20180312
<SEC-HEADER>0001193125-17-316608.hdr.sgml : 20180312
<ACCEPTANCE-DATETIME>20171023162355
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-17-316608
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20171023

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CAPITAL SOUTHWEST CORP
		CENTRAL INDEX KEY:			0000017313
		IRS NUMBER:				751072796
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		5400 LYNDON B. JOHNSON FREEWAY
		STREET 2:		SUITE 1300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75240
		BUSINESS PHONE:		2142385700

	MAIL ADDRESS:	
		STREET 1:		5400 LYNDON B. JOHNSON FREEWAY
		STREET 2:		SUITE 1300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75240
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML><HEAD>
<TITLE>SEC Response Letter</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>[CAPITAL SOUTHWEST CORPORATION LETTERHEAD] </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">October&nbsp;23, 2017 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>BY EDGAR
</U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Jay Williamson </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and
Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F
Street, NE </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, DC 20549 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>RE:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Capital Southwest Corporation </B></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>&nbsp;</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Registration Statement on Form <FONT STYLE="white-space:nowrap">N-2</FONT> </B></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>&nbsp;</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Filed September&nbsp;8, 2017 </B></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>&nbsp;</B></TD>
<TD ALIGN="left" VALIGN="top"><B>File <FONT STYLE="white-space:nowrap">No.&nbsp;333-220385</FONT> </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Capital Southwest Corporation (the &#147;<I>Company</I>&#148;) today filed with the Securities and Exchange Commission (the
&#147;<I>Commission</I>&#148;) Pre-Effective Amendment No.&nbsp;1 (&#147;<I>Amendment No.</I><I></I><I>&nbsp;1</I>&#148;) to its Registration Statement on Form <FONT STYLE="white-space:nowrap">N-2</FONT> (Registration
<FONT STYLE="white-space:nowrap">No.&nbsp;333-220385)</FONT> (as amended, the &#147;<I>Registration Statement</I>&#148;). In addition, set forth below are the Company&#146;s responses to the comments of the staff of the Division of Investment
Management of the Commission (the &#147;<I>Staff</I>&#148;) contained in the letter dated October&nbsp;6, 2017. For ease of reference, the text of the Staff&#146;s comments are included in bold-face type below, followed in each case by the
Company&#146;s response. Except as otherwise provided, page references included in the body of the Company&#146;s responses are to pages in Amendment No.&nbsp;1. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>General </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>1.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please confirm that there are no agreements or understandings by which you guarantee or otherwise obligate yourself to make payments on the debts owed by <FONT STYLE="white-space:nowrap">I-45</FONT> SLF LLC.
</B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company confirms that there are no agreements or understandings by which the Company
guarantees or otherwise obligates itself to make payments on the debts owed by <FONT STYLE="white-space:nowrap">I-45</FONT> SLF LLC. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 of 11 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Prospectus Summary, page 1 </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>2.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>On page two you indicate that certain investments may be secured by a &#147;silent&#148; second lien on the assets of a portfolio company. Please explain what a silent second lien is and discuss any material
implications for the fund associated with investing in silent second lien loans. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company
advises the Staff that in an effort to enhance the collectability in the event of a default of a subordinated debt investment, the Company sometimes negotiates a &#147;silent&#148; second lien.&nbsp;In a &#147;silent&#148; second lien, the Company
obtains a perfected second lien security interest in the assets of the borrower, but the intercreditor agreement with the first lien lender otherwise looks similar to a typical unsecured mezzanine investment, where the first lien lender has the
right to block payment of the mezzanine interest upon a covenant default. Because the Company has few subordinated debt investments, the Company has removed the reference to &#147;silent&#148; second lien on pages 2 and 38 to avoid confusion. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>3.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>On page two you state your belief that your investment strategy with respect to LMM companies has limited correlation to the broader debt and equity markets. Please tell us the basis for your belief.
</B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company has removed the disclosure on pages 2 and
38. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Fees and Expenses, page 9 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>4.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Footnote three indicates that the expenses associated with administering your DRIP are included in operating expenses. We are aware that some plans assess shareholders fees when they sell DRIP shares. Please revise
footnote three to disclose any fees shareholders would pay, directly or indirectly, as a result of participating in the DRIP. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company advises the Staff that the Company&#146;s DRIP does not allow shareholders to sell shares through the DRIP.
The Company further advises the Staff that it has revised footnote three on page 10 to disclose that if a Company shareholder wishes to sell shares they would be required to select a broker of their choice and pay any fees or other costs associated
with the sale. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 of 11 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Risk Factors, page 11 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>5.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>On page 16 you include a risk factor addressing potential indemnification liabilities you may have to CSWI. Please tell us whether you currently have any indemnification obligation to CSWI. To the extent you do,
please tell us what the obligation is and how you treat it for purposes of complying with Section&nbsp;18 under the Investment Company Act. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company advises the Staff that in September 2015, the Company spun off certain of its industrial products
businesses through the pro rata distribution of shares of CSW Industrials, Inc. (&#147;<I>CSWI</I>&#148;) to holders of the Company&#146;s common stock (the &#147;<I>Share Distribution</I>&#148;). As part of the Share Distribution, the Company
entered into a Distribution Agreement (the &#147;<I>Distribution Agreement</I>&#148;), a Tax Matters Agreement (the &#147;<I>Tax Matters Agreement</I>&#148;) and an Employee Matters Agreement (the &#147;<I>Employee Matters Agreement</I>,&#148; and,
together with the Distribution Agreement and Tax Matters Agreement, the &#147;<I>Share Distribution Agreements</I>&#148;) with CSWI. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Pursuant to the
Share Distribution Agreements, the Company and CSWI each agreed to indemnify the other for liabilities arising out of the ownership or operation of their respective businesses, as conducted at any time prior to, on or after the date of the Share
Distribution or for any breach of its obligation under the Share Distribution Agreements. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company further advises the Staff that as of the date of
this letter, no claims for indemnification have been made by either CSWI or the Company under the Share Distribution Agreements. In addition, as of the date of this letter the Company is not aware of any fact or circumstance that would give rise to
any indemnification claim by either the Company or CSWI. The Company does not believe its indemnification obligations implicate Section&nbsp;18 under the Investment Company Act. These indemnification obligations should not be viewed as senior
securities or raising senior security issues. To address the current indemnification obligations the Company has revised the applicable risk factors on page 18. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations, page 35 </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Investment Portfolio Composition, page 37 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>6.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please consider disclosing the percentage of loans at floating versus fixed rates in one of the tables included in this section. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company has revised page 41 to disclose the percentage of loans at
floating versus fixed rates. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>7.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please add disclosure explaining what &#147;Weighed average leverage through CSWC security&#148; means and how management uses the metric in evaluating its portfolio and investments. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company has revised pages 41 and 42 to explain the meaning of
&#147;weighted average leverage through CSWC.&#148; In addition, the Company has revised pages 41 and 42 to disclose that management uses this metric as a guide to evaluate relative risk of its position in each portfolio debt investment. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>8.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Footnote 1 to your table on page 39 indicates that you have included loans structured as first lien last out loans as first lien loans in your table. If material, please revise your footnote to disclose the amount of
first lien last out loans included in the table. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the
Company has revised page 42 to disclose the dollar amount of first lien last out loans included in the table. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Results of Operations, page 41
</U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Comparison of years ended March&nbsp;31, 2017 and March&nbsp;31, 2016, page 43 </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>9.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We note you attribute part of the increase in investment income to a $7.9&nbsp;million increase in interest income generated from your debt investments however it is unclear why your debt investment income increased
period over period. For example was the increase due to higher interest rates on existing loans, an increase in the amount of loans, or some other factors? Please revise to address, in both quantitative and qualitative terms, the underlying business
or economic reasons for material changes in your results of operations. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;In response to the
Staff&#146;s comment, the Company has revised page 46 to disclose in both quantitative and qualitative terms the underlying business or economic reasons for material changes in its results of operations. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>10.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Your disclosure indicates that you recorded a net increase in unrealized appreciation totaling $7.7&nbsp;million, which consisted of $15.1&nbsp;million in unrealized appreciation and the reversal of $7.1&nbsp;million
in net unrealized appreciation. To the extent that a change in any portfolio value was individually material to your financial results, please specifically identify the holding and address the underlying reason(s) causing the change in value. In
addition, if there are any known material trends impacting your portfolio as a whole, please address how such trends impact your results, including changes in unrealized appreciation/depreciation. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company has revised page 47 to disclose material changes in individual
portfolio values. The Company further advises the Staff that it is not aware of any known material trends impacting its portfolio as a whole. There is no known material trend impacting the Company&#146;s portfolio as a whole due to the distribution
of investments across a range of industries and geographic regions of the United States. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U><FONT STYLE="white-space:nowrap">Off-Balance</FONT> Sheet Arrangements, page 46 </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>11.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>On page 46 you indicate that you may be party to financial instruments with <FONT STYLE="white-space:nowrap">off-balance</FONT> sheet risk and these instruments may include commitments to extend credit and fund
equity capital &#133;&#148; You then disclose that you have approximately $3.2&nbsp;million in uncalled equity capital commitments. Are these your only unfunded obligations? If so, revise to clarify. If not, please disclose your total unfunded
commitments. In addition, please confirm that you reasonably believe your assets will provide adequate cover to allow you to satisfy your unfunded commitments, and explain to us the basis for your belief. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company has revised page 50 to confirm that the approximately
$3.2&nbsp;million in outstanding commitments related to equity capital commitments to <FONT STYLE="white-space:nowrap">I-45</FONT> SLF are the Company&#146;s only unfunded obligations. The Company has further revised page 50 to confirm that it
reasonably believes the Company has sufficient assets to satisfy its unfunded commitments because of cash and cash equivalents as well as available borrowings under its credit facility as of March&nbsp;31, 2017 and June&nbsp;30, 2017, respectively.
</P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Description of our Debt Securities, page 90 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>12.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please provide us with a representation that you will not use the term &#147;senior&#148; with respect to debt securities offered under this registration statement unless the debt will be senior in priority to other
outstanding company debt. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company represents on a supplemental basis that the Company will
not use the term senior with respect to future offerings of the Company&#146;s debt securities unless the debt will be senior in priority to other outstanding debt of the Company. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>13.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please note our expectation that, in any debt offering pursuant to a prospectus supplement, the outside front cover of the prospectus supplement should, as applicable: </B></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>Disclose that the debt securities are &#147;structurally subordinated&#148; and are &#147;effectively subordinated&#148; to all existing and future indebtedness of the Company and other obligations of its
subsidiaries, financing vehicles, credit and similar facilities; </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>Explain, in plain English, the significance of the debt securities being structurally and effectively subordinated, specifically highlighting how such subordination affects the rights and priorities of the holders of
the debt securities; </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>Disclose the approximate dollar amounts of all liabilities and obligations to which the debt securities being offered are, respectively, pari passu, structurally subordinated and effectively subordinated;
</B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>Disclose whether any of the Company&#146;s existing indebtedness will be subordinated to the debt securities being offering; and, </B></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>State whether there is any current intention to issue additional debt securities, including a statement whether such securities will be senior or subordinated to the debt securities being offered.
</B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company confirms that it will comply with this comment in any offering of debt securities
pursuant to a prospectus supplement. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>14.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please confirm whether you intend to issue debt securities within one year from the effective date of this registration statement. If you do, please reflect the expected borrowing costs in the Fees and Expenses
table. Any change in your intention to issue debt securities at the time of an offering should be reflected in the Fees and Expenses table of the relevant prospectus supplement. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company advises the Staff that the Company&#146;s management and board may
determine that it is in the best interest of the Company to issue debt securities in the next 12 months. Accordingly, the Company has revised the disclosure in the Fees and Expenses table on pages 10 and 11. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>15.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please file a <FONT STYLE="white-space:nowrap">pro-forma</FONT> copy of a supplement that you intend to use in connection with an offering of your debt securities. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company has filed a <FONT STYLE="white-space:nowrap">pro-forma</FONT> copy of a debt securities supplement with the
Registration Statement as Exhibit 99.3. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Exhibits </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>16.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We note that you have not filed certain required exhibits. Please note that we review, and frequently comment upon, the exhibits. Please allow sufficient time for us to do so. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company has filed all required exhibits with the revised Registration Statement. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Exhibit (L) </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>17.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Currently your legality opinion contains a number of assumptions that are inappropriate and inconsistent with the guidance contained in Staff Legal Bulletin 19 (October 14, 2011). Please confirm your intention to
file clean legal opinions in connection with any shelf takedown. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company undertakes that in
connection with each future offering of securities to file an unqualified legality opinion and related consent of counsel (which are consistent with the views set forth in Staff Legal Bulletin No.&nbsp;19) and remove the present opinion assumptions
in a post-effective amendment to the Registration Statement. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Accounting Comments </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Fees and Expenses (Page 9) </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>18.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>For purposes of calculating acquired fund fees and expenses, the annual operating expenses should be used in the calculation. Please update the ratio to include all operating expenses or explain the rationale for
excluding interest and interest related expenses of the underlying acquiring funds. See Item 3.10.d. of Form <FONT STYLE="white-space:nowrap">N-2.</FONT> </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company has revised page 10 to update the acquired fund fees and expenses
ratio. The Company has also revised footnote 8 on page 10. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Financial Statements </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>19.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>With regard to the Report of the Independent Registered Public Accounting Firm on page <FONT STYLE="white-space:nowrap">F-41,</FONT> please confirm that the audit included confirmation of the securities owned by the
Company as of March&nbsp;31, 2017. In future audit opinions, please include a statement that the audit procedures included confirmation of securities owned as of the year end by correspondence with the custodian and brokers or by other appropriate
auditing procedures where replies from brokers were not received. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company confirms that the
audit included confirmation of the securities owned by the Company as of March&nbsp;31, 2017. The Company also undertakes that future audit opinions will include a statement that the audit procedures included confirmation of securities owned as of
the year end by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>20.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>On a prospective basis, please include a line item on the Consolidated Statements of Assets and Liabilities on page <FONT STYLE="white-space:nowrap">F-42</FONT> for &#147;Commitments and Contingencies,&#148; along
with a reference directing the reader to the related footnote in the Company&#146;s Notes to Financial Statements (i.e., Note 12). See Regulation <FONT STYLE="white-space:nowrap">S-X</FONT> Rule <FONT STYLE="white-space:nowrap">6-04.15.</FONT>
</B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company represents that in the future it will include a line item on the Consolidated
Statements of Assets and Liabilities for &#147;Commitments and Contingencies,&#148; with a reference directing the reader to the related footnote in the Company&#146;s Notes to Financial Statements (<I>i.e.</I>, Note 12). </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>21.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>On page <FONT STYLE="white-space:nowrap">F-47,</FONT> please confirm that the Company performed an analysis as to whether the disclosure requirements of <FONT STYLE="white-space:nowrap">Rules&nbsp;3-09</FONT> or <FONT
STYLE="white-space:nowrap">4-08(g)</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X</FONT> should be applied to its investment in Titanliner, Inc. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company confirms that it performed an analysis as to whether the disclosure requirements of Rules <FONT
STYLE="white-space:nowrap">3-09</FONT> or <FONT STYLE="white-space:nowrap">4-08(g)</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X</FONT> should be applied to its investment in Titanliner, Inc. Other than as disclosed, there are no
investments that would require such disclosure. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>22.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>On page <FONT STYLE="white-space:nowrap">F-48,</FONT> in footnote 9, in future filings, please include the percentage of <FONT STYLE="white-space:nowrap">non-qualifying</FONT> assets as of the report date.
</B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company represents that in future filings it will include the percentage of <FONT
STYLE="white-space:nowrap">non-qualifying</FONT> assets as of the report date on the Consolidated Schedule of Investments. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>23.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Page <FONT STYLE="white-space:nowrap">F-48</FONT> describes first lien last out term loans. Please supplementally describe the accounting treatment of the debt and related agreement amongst lenders. Specifically,
describe the unit of account and if these instruments are accounted for separately. Further, describe if the debt instrument can be sold separately and apart from the agreement with other lenders. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company advises the Staff that in regard to the first lien last out term loans, there are two existing investments
&#151; AG Kings Holdings and Elite SEM, Inc. Regarding AG Kings Holdings, the Company purchased the loan from a syndicate and did not structure the transfer. Regarding Elite SEM, Inc. there was no transfer of a financial asset under ASC 860 because
both the third-party lender and the Company were parties to the original credit agreement and each made a separate loan directly to the borrower. The first and last out positions, created under the concurrent agreement among lenders referenced in
the Credit Agreement, were separate units of account and part of the original debt structure. Any value related to the separate agreement among lenders is captured in the valuation of the investment as it takes into account the payment subordination
as further described in Comment No.&nbsp;24 below. As these are not transfers of a financial asset under ASC 860, considerations regarding whether the debt instrument can be sold separately and apart from the agreement with other lenders impacting
the analysis under ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">860-10-40-5</FONT></FONT></FONT> are not applicable. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>24.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>With regard to the investments that are structured as a first lien last out term loan as described on page <FONT STYLE="white-space:nowrap">F-48,</FONT> please provide in correspondence the accounting policy for such
investments including how the valuation of these investments takes into account the payment prioritization/payment waterfalls and the impact of the arrangements on the calculation of interest income under the effective interest method.
</B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company advises the Staff that the Company uses the same valuation methodology for a first
lien last out investments as with the Company&#146;s other debt investments. The Company uses a market-based approach to assess the total enterprise value of the portfolio company in order to evaluate the enterprise value coverage of the
Company&#146;s debt investment. After enterprise value coverage is determined, an income approach using a discounted cash flow analysis is employed to estimate the fair value of the investment. Under the income approach, the key assumption in the
valuation of a given debt investment is the selection of the required market yield for that investment. In determining the required market yield of a first lien last out investment using the income approach, the Company considers factors such as
payment subordination, which would generally indicate the required market yield of a first lien last out investment is higher than a similar first lien investment. We believe our valuation methodology captures the risk associated with first lien
last out investments through the selection of the required market yield. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Interest income is calculated the same as the Company&#146;s other debt
investments and is recorded on the accrual basis to the extent amounts are expected to be collected. Discounts and premiums received to par on loans purchased are capitalized and accreted or amortized into income over the life of the loan using the
effective interest method. The interest rate is determined according to the terms for the last out loan in the executed credit agreement and agreement among lenders. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>25.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Page <FONT STYLE="white-space:nowrap">F-67</FONT> describes the accounting treatment of federal taxes related to deemed distributions. Please explain how the accounting treatment of federal taxes as a component of
capital as opposed to expense aligns with the guidance in Article <FONT STYLE="white-space:nowrap">6-07</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X.</FONT> Also, please see the AICPA Expert Panel Meeting Highlights from March&nbsp;30,
2006 and December&nbsp;15, 2009 as an additional reference on the accounting for deemed distributions and federal taxes. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company advises the Staff that in regard to the accounting treatment for federal taxes related to deemed
distributions, our accounting treatment is that when the Company elects to retain realized capital gains and designate such gains as a deemed distribution to shareholders in accordance with section 852(b)(3)(D) of the Internal Revenue Code, it
shall, on the last day of its taxable year, make accrual for taxes on such undistributed capital gains realized during such year. The Company has historically treated such taxes as a transaction with its investors. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company reviewed AICPA Investment Companies Guide, paragraph 6.40: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">A RIC may retain all or any portion of its net capital gain and elect to have shareholders include the gain in their taxable income as though a
capital gain dividend had been paid. In such a case, the RIC will pay corporate income tax (currently 35 percent) on the undistributed net capital gain within 30 days of its <FONT STYLE="white-space:nowrap">year-end</FONT> and notify shareholders
within 60 days of the RIC&#146;s tax <FONT STYLE="white-space:nowrap">year-end</FONT> of the allocable retained capital gain </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
and related income tax paid (IRC Sections 852(b)(3)(D)(i) and (iv)). The gain is treated as long term capital gain, and the tax is treated as a tax payment by the shareholders (IRC
Section&nbsp;852(b)(3)(D)(ii)). Each shareholder is entitled to increase the basis of his or her shares by a percentage (currently 65 percent) of the deemed distribution (IRC Section&nbsp;852(b)(3)(D)(iii)). Notification must be provided to
shareholders on Form 2439 (Treasury Regulation <FONT STYLE="white-space:nowrap">1.852-9).</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company confirms that we provided notification to
shareholders as required by the guidance cited above within the required timeframe, as such, these federal taxes were treated as a component of capital as noted by the Staff. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company concluded this accounting treatment was appropriate due to the guidance cited above as well as Example 35: Attribution of Income Taxes to the
Entity or Its Owners in ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">740-10-55.</FONT></FONT> This example illustrates a similar fact pattern and concludes the income taxes should be treated as a transaction with the owners,
thus, supporting treatment of the taxes as a component of capital. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Additionally, the Company notes our analysis and current accounting treatment are
consistent with our response on November&nbsp;6, 2015 to a prior comment received from the SEC. The comment and response are as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Comment 7: Does the Company have a provision for income taxes on the gain/loss related to its distributions on investments? If so, please
include line items in future filings on the Consolidated Statement of Operations showing the income tax applicable to this gain/loss and the net gain/loss. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">We have a provision for income taxes on realized gain/loss. Since it was a deemed capital gain distribution for the year, it was included under
the Distribution line item under the Consolidated Statements of Changes in Net Assets. The Company respectfully informs the Staff that it believes this disclosure is appropriately made on the Consolidated Statements of Changes in Net Assets instead
of the Consolidated Statements of Operations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As noted by the Staff, the Company treats these federal taxes as a component of capital (and not expense)
due to the fact that these are taxes paid on behalf of the shareholders. Based on the Company&#146;s review of the above referenced AICPA Expert Panel Meeting Highlights and discussions with our Audit Committee, our predecessor auditor, and our
legal counsel, the Company has concluded that the historical accounting treatment was appropriate; however, it will make an accounting policy change in accordance with ASC 250 and, on a prospective basis, recognize any federal tax on deemed
distributions in future periods in the statement of operations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">* * * * * * * </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 23, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 11
 of 11 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If you have any questions, please feel free to contact me at 214.884.3829 or David A. Kern,
the Company&#146;s outside legal counsel, at 214.969.4536. Thank you for your cooperation and prompt attention to this matter. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sincerely,</TD></TR>
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<TD HEIGHT="16"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Michael S. Sarner</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Michael S. Sarner</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Chief Financial Officer, Secretary and Treasurer</TD></TR>
</TABLE></DIV> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top">James E. O&#146;Bannon, Partner, Jones Day </TD></TR></TABLE>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">David A. Kern, Partner, Jones Day </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

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