Net expenses totaled $3.5 million and $3.1 million, respectively, for the three months ended March 31, 2021 and 2020, of which
$0.9 million and $1.2 million, respectively, were gross base management fees and gross performance-based incentive fees and $1.8 million and $2.1 million, respectively, were interest and other credit facility expenses. Over the
same periods, $0.0 million and $1.0 million, respectively, of management and performance-based incentive fees were waived. Administrative services and other general and administrative expenses totaled $0.8 million and
$0.9 million, respectively, for the three months ended March 31, 2021 and 2020. Expenses generally consist of management fees, performance-based incentive fees, administrative services expenses, insurance, legal expenses, directors
expenses, audit and tax expenses, transfer agent fees and expenses, and other general and administrative expenses. Interest and other credit facility expenses generally consist of interest, unused fees, agency fees and loan origination fees, if any,
among others. The increase in net expenses year over year is primarily due to a decrease in the waivers of fees.
Net Investment Income
The Companys net investment income totaled $3.2 million and $5.7 million, or $0.20 and $0.35, per average share, respectively,
for the three months ended March 31, 2021 and 2020.
Net Realized Gain (Loss)
The Company had investment sales and prepayments totaling approximately $12.9 million and $73.1 million, respectively, for the three
months ended March 31, 2021 and 2020. Net realized gains (losses) over the same periods were ($0.03) million and $0.1 million, respectively. Net realized losses for the three months ended March 31, 2021 were de minimis. Net realized
gains for the three months ended March 31, 2020 were primarily related to the Companys sale of selected assets.
Net Change in Unrealized
For the three months ended March 31, 2021 and 2020, net change in unrealized gain (loss) on the Companys assets
and liabilities totaled $1.6 million and ($27.8) million, respectively. Net unrealized gain for the three months ended March 31, 2021 is primarily due to appreciation on our investments in Genmark Diagnostics, Inc., Ministry Brands, LLC
and DISA Holdings Acquisition Subsidiary Corp., among others, partially offset by depreciation in our investment in Galway Partners Holdings, LLC, among others. Net unrealized loss for the three months ended March 31, 2020 is primarily due to
depreciation on our investments in SLR Business Credit, Confie Seguros Holding II Co., Capstone Logistics Acquisition, Inc. and US Radiology Specialists, Inc., among others.
Net Increase (Decrease) in Net Assets From Operations
For the three months ended March 31, 2021 and 2020, the Company had a net increase (decrease) in net assets resulting from operations of
$4.8 million and ($22.1) million, respectively. For the same periods, earnings (loss) per average share were $0.30 and ($1.37), respectively.
LIQUIDITY AND CAPITAL RESOURCES
Companys liquidity and capital resources are generally available through its revolving credit facilities, unsecured notes and through periodic follow-on equity offerings, as well as from cash flows from
operations, investment sales and pre-payments of investments. At March 31, 2021, the Company had $111.2 million in borrowings outstanding on its credit facilities and $273.8 million of unused
capacity, subject to borrowing base limits.
On March 31, 2020, the Company closed a private offering of $85,000 of senior unsecured
notes due 2025 (the 2025 Unsecured Notes) with a fixed interest rate of 3.90% and a maturity date of March 31, 2025. Interest on the 2025 Unsecured Notes is due semi-annually on March 31 and September 30. The 2025 Unsecured
Notes were issued in a private placement only to qualified institutional buyers.
On May 31, 2019, the Company as transferor and FLLP
2015-1, LLC, a wholly-owned subsidiary of the Company, as borrower entered into amendment number five to the $75 million credit facility with Wells Fargo Bank, NA acting as administrative agent (the FLLP Facility). The Company acts
as servicer under the FLLP Facility. The FLLP Facility is scheduled to mature on May 31, 2024. The FLLP Facility generally bears interest at a rate of LIBOR plus a range of 2.15-2.25%.
On June 1, 2018, the $200 million senior secured revolving credit facility with our wholly-owned subsidiary SUNS SPV LLC as borrower
and Citibank, N.A. acting as administrative agent (the Credit Facility) was refinanced by way of amendment, allowing for greater investment flexibility and the extension of the maturity date, among other changes. On July 13, 2018,
commitments to the Credit Facility, as amended, were increased from $200 million to $225 million by utilizing the accordion feature.