EX-2.S.3 10 d668320dex2s3.htm EX-2.S.3

Exhibit 2.s.3

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND MANDATORILY REDEEMABLE PREFERRED DISTRIBUTIONS

(Dollars in Thousands, Except Ratios)

|  | For the Years Ended September 30, |
|  | 2018 |  |  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Net investment income |  | $ | 23,088 |  |  | $ | 21,433 |  |  | $ | 19,487 |  |  | $ | 17,700 |  |  | $ | 18,368 |
Add: fixed charges and mandatorily redeemable preferred distributions |  |  | 9,977 |  |  |  | 8,319 |  |  |  | 8,092 |  |  |  | 9,050 |  |  |  | 7,213 |
Less: mandatorily redeemable preferred distributions |  |  | (3,105 | ) |  |  | (4,152 | ) |  |  | (4,118 | ) |  |  | (4,116 | ) |  |  | (3,338 | )
Net earnings(1) |  | $ | 29,960 |  |  | $ | 25,600 |  |  | $ | 23,461 |  |  | $ | 22,634 |  |  | $ | 22,243 |
Fixed charges and mandatorily redeemable preferred distributions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 5,858 |  |  |  | 3,073 |  |  |  | 2,899 |  |  |  | 3,828 |  |  |  | 2,628 |
Amortization of deferred financing fees |  |  | 1,014 |  |  |  | 1,094 |  |  |  | 1,075 |  |  |  | 1,106 |  |  |  | 1,247 |
Mandatorily redeemable preferred distributions |  |  | 3,105 |  |  |  | 4,152 |  |  |  | 4,118 |  |  |  | 4,116 |  |  |  | 3,338 |
Total fixed charges and mandatorily redeemable preferred distributions |  | $ | 9,977 |  |  | $ | 8,319 |  |  | $ | 8,092 |  |  | $ | 9,050 |  |  | $ | 7,213 |
Ratio of net earnings to combined fixed charges and mandatorily redeemable preferred distributions |  |  | 3.0 |  |  |  | 3.1 |  |  |  | 2.9 |  |  |  | 2.5 |  |  |  | 3.1 |

(1) | Earnings include net realized and unrealized gains or losses. Net realized and unrealized gains or losses can vary substantially from period to period.

The calculation of the ratio of net earnings to combined fixed charges and mandatorily redeemable preferred distributions is above. “Net earnings” consist of net investment income before fixed charges. “Fixed charges” consist of interest expense and amortization of deferred financing fees.