XML 80 R17.htm IDEA: XBRL DOCUMENT v3.24.1.u1
MANDATORILY REDEEMABLE PREFERRED STOCK
 12 Months Ended
Mar. 31, 2024
Equity [Abstract]  
MANDATORILY REDEEMABLE PREFERRED STOCK MANDATORILY REDEEMABLE PREFERRED STOCK
In August 2021, we used a portion of the proceeds from the issuance of the 4.875% 2028 Notes to voluntarily redeem all outstanding shares of the 6.375% Series E Cumulative Term Preferred Stock (“Series E Term Preferred Stock” or “Series E”), which had a liquidation preference of $25.00 per share. In connection with the voluntary redemption of the Series E Term Preferred Stock, we incurred a loss on extinguishment of debt of $2.0 million, which was recorded in Realized loss on other in our accompanying Consolidated Statements of Operations and which was primarily comprised of unamortized deferred issuance costs at the time of redemption.
The following tables summarize dividends declared by our Board of Directors and paid by us on each of the Series E Term Preferred Stock during the year ended March 31, 2022:
For the Year Ended March 31, 2022:
Declaration DateRecord
Date
Payment
Date
Dividend per Share of
Series E Term
Preferred Stock(A)
April 13, 2021April 23, 2021April 30, 2021$0.13281250 
April 13, 2021May 19, 2021May 28, 20210.13281250 
April 13, 2021June 18, 2021June 30, 20210.13281250 
July 13, 2021July 23, 2021July 30, 20210.13281250 
July 13, 2021August 23, 2021August 31, 20210.07968750 
(B)
Total$0.61093750 
(A)We voluntarily redeemed all outstanding shares of the Series E Term Preferred Stock on August 19, 2021
(B)Represents accrued and unpaid dividends up to, but excluding, the redemption date of August 19, 2021.
The federal income tax characteristics of dividends paid to our preferred stockholders generally constitute ordinary income or capital gains to the extent of our current and accumulated earnings and profits and are reported after the end of the calendar year based on tax information for the full fiscal year. The tax characterization of dividends paid to our preferred stockholders during the calendar year ended December 31, 2021 was 71.3% from ordinary income and 28.7% from capital gains.
DISTRIBUTIONS TO COMMON STOCKHOLDERS
To qualify to be taxed as a RIC under Subchapter M of the Code, we must generally distribute to our stockholders, for each taxable year, at least 90% of our Investment Company Taxable Income. The amount to be paid out as distributions to our stockholders is determined by our Board of Directors and is based upon management’s estimate of Investment Company Taxable Income and net long-term capital gains, as well as amounts to be distributed in accordance with Section 855(a) of the Code. Based on that estimate, our Board of Directors declares monthly distributions, and supplemental distributions, as appropriate, to stockholders each quarter and deemed distributions of long-term capital gains annually as of the end of the fiscal year, as applicable.
The U.S. federal income tax characteristics of cash distributions paid to our common stockholders generally are reported to stockholders on IRS Form 1099 after the end of each calendar year. Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of cash distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date. The tax characterization of cash distributions paid to our common stockholders during the calendar year ended December 31, 2023 was 53.2% from ordinary income and 46.8%
from capital gains. The tax characterization of cash distributions paid to our common stockholders during the calendar year ended December 31, 2022 was 61.2% from ordinary income and 38.8% from capital gains.
We paid the following cash distributions to our common stockholders for the years ended March 31, 2024, 2023 and 2022.
For the Year Ended March 31, 2024:
Declaration Date
Record DatePayment DateDistribution
per Common Share
April 11, 2023April 21, 2023April 28, 2023$0.080 
April 11, 2023May 23, 2023May 31, 20230.080 
April 11, 2023June 5, 2023June 15, 20230.120 
(A)
April 11, 2023June 21, 2023June 30, 20230.080 
July 11, 2023July 21, 2023July 31, 20230.080 
July 11, 2023August 23, 2023August 31, 20230.080 
July 11, 2023September 7, 2023September 15, 20230.120 
(A)
July 11, 2023September 21, 2023September 29, 20230.080 
October 10, 2023October 20, 2023October 31, 20230.080 
October 10, 2023November 7, 2023November 17, 20230.120 
(A)
October 10, 2023November 20, 2023November 30, 20230.080 
October 24, 2023December 5, 2023December 15, 20230.880 
(A)
October 10, 2023December 18, 2023December 29, 20230.080 
January 9, 2024January 23, 2024January 31, 20240.080 
January 9, 2024February 21, 2024February 29, 20240.080 
January 9, 2024March 21, 2024March 29, 20240.080 
Year ended March 31, 2024
$2.200 
For the Year Ended March 31, 2023:
Declaration Date
Record DatePayment DateDistribution
per Common Share
April 12, 2022April 22, 2022April 29, 2022$0.075 
April 12, 2022May 20, 2022May 31, 20220.075 
April 12, 2022June 6, 2022June 15, 20220.120 
(A)
April 12, 2022June 22, 2022June 30, 20220.075 
July 12, 2022July 22, 2022July 29, 20220.075 
July 12, 2022August 23, 2022August 31, 20220.075 
July 12, 2022September 22, 2022September 30, 20220.075 
October 11, 2022October 21, 2022October 31, 20220.080 
October 11, 2022November 18, 2022November 30, 20220.080 
October 11, 2022December 6, 2022December 15, 20220.120 
(A)
October 11, 2022December 20, 2022December 30, 20220.080 
January 10, 2023January 20, 2023January 31, 20230.080 
January 10, 2023February 17, 2023February 28, 20230.080 
January 10, 2023March 3, 2023March 15, 20230.240 
(A)
January 10, 2023March 17, 2023March 31, 20230.080 
Year ended March 31, 2023:
$1.410 
For the Year Ended March 31, 2022:
Declaration Date
Record DatePayment DateDistribution
per Common Share
April 13, 2021April 23, 2021April 30, 2021$0.070 
April 13, 2021May 19, 2021May 28, 20210.070 
April 13, 2021June 8, 2021June 17, 20210.060 
(A)
April 13, 2021June 18, 2021June 30, 20210.070 
July 13, 2021July 23, 2021July 30, 20210.070 
July 13, 2021August 23, 2021August 31, 20210.070 
July 13, 2021September 3, 2021September 15, 20210.030 
(A)
July 13, 2021September 22, 2021September 30, 20210.070 
October 12, 2021October 22, 2021October 29, 20210.075 
October 12, 2021November 19, 2021November 30, 20210.075 
October 12, 2021December 7, 2021December 15, 20210.090 
(A)
October 12, 2021December 23, 2021December 31, 20210.075 
January 11, 2022January 21, 2022January 31, 20220.075 
January 11, 2022February 4, 2022February 14, 20220.120 
(A)
January 11, 2022February 18, 2022February 28, 20220.075 
January 11, 2022March 23, 2022March 31, 20220.075 
Year ended March 31, 2022:
$1.170 
(A)Represents a supplemental distribution to common stockholders.
Aggregate cash distributions to our common stockholders declared and paid for the years ended March 31, 2024, 2023 and 2022 were $76.1 million, $47.0 million, and $38.9 million, respectively.
For the fiscal years ended March 31, 2024, 2023, and 2022, Investment Company Taxable Income exceeded distributions declared and paid, and, in accordance with Section 855(a) of the Code, we elected to treat $18.7 million, $21.4 million, and $13.9 million, respectively, of the first distributions paid subsequent to fiscal year-end, as having been paid in the prior year. In addition, for the fiscal years ended March 31, 2024, 2023, and 2022, net capital gains exceeded distributions declared and paid, and, in accordance with Section 855(a) of the Code, we elected to treat $1.4 million, $10.6 million, and $15.7 million, respectively, of the first distributions paid subsequent to fiscal year-end as having been paid in the prior year.
We may distribute our net long-term capital gains, if any, in cash or elect to retain some or all of such gains, pay taxes at the U.S. federal corporate-level income tax rate on the amount retained, and designate the retained amount as a “deemed distribution.” If we elect to retain net long-term capital gains and deem them distributed, each U.S. common stockholder will be treated as if they received a distribution of their pro-rata share of the retained net long-term capital gain and the U.S. federal income tax paid. As a result, each U.S. common stockholder will (i) be required to report their pro-rata share of the retained gain on their tax return as long-term capital gain, (ii) receive a refundable tax credit for their pro-rata share of federal income tax paid by us on the retained gain, and (iii) increase the tax basis of their shares of common stock by an amount equal to the deemed distribution less the tax credit. To use the deemed distribution approach, we must provide written notice to our common stockholders prior to the expiration of 60 days after the close of the relevant taxable year. For the years ended March 31, 2024, 2023, and 2022 we did not elect to retain long-term capital gains and to treat them as deemed distributions to common stockholders.
The components of our net assets on a tax basis were as follows:

Year Ended March 31,

20242023
Common stock
$37 $34 
Capital in excess of par value
444,706 401,798 
Cumulative unrealized appreciation of investments
64,737 31,129 
Cumulative unrealized depreciation of other
— 29 
Undistributed ordinary income18,708 21,380 
Undistributed capital gain
1,373 10,552 
Other temporary differences
(36,850)(25,180)
Net Assets
$492,711 $439,742 
For the years ended March 31, 2024 and 2023, we recorded the following adjustments for estimated permanent book-tax differences to reflect tax character. Results of operations, total net assets, and cash flows were not affected by these adjustments.

Tax Year Ended March 31,

20242023
Underdistributed (overdistributed) net investment income
$1,695 $1,301 
Accumulated net realized gain in excess of distributions
$(881)$263 
Capital in excess of par value
$(814)$(1,564)