6.    Financing Transactions

During the six-month period ended June 30, 2019, the Company generated approximately $39.0 million of gross proceeds from the sale of its securities as follows:

(i)$16,000,000 from the sale of 3,466,965 common shares in an “at-the-market” offering; and

(ii)$23,000,000 from the sale of its 7.125% unsecured, unsubordinated notes due June 30, 2024 (together with the notes sold pursuant to the exercise of the over-allotment option (see note 11), the “Notes”).

The net proceeds from these offerings, approximately $37.2 million in the aggregate, were used primarily to pay-off the Webster Facility in full and the balance is being used as working capital and for general corporate purposes.

The Notes were sold in an underwritten public offering. The Notes were issued in denomination of $25.00 each and are listed on the NYSE American and trade under the symbol “SCCB”. Interest accrues on the Notes commencing June 25, 2019. The accrued interest is payable quarterly in cash, in arrears, on March 30, June 30, September 30 and December 30, commencing September 30, 2019. The Notes mature and the entire principal amount is due June 30, 2024. So long as the Notes are outstanding, the Company is prohibited from making distributions in excess of 90% of its taxable income, incurring any additional indebtedness or purchasing any shares of its capital stock unless it has an “Asset Coverage Ratio” of at least 150% after giving effect to such distribution, the incurrence of such indebtedness or the application of the net proceeds, as the case may be. The Company may redeem the Notes, in whole or in part, without premium or penalty, at any time after June 25, 2021 upon at least 30 days prior written notice to the holders of the Notes. The redemption price will be equal to the outstanding principal amount of the Notes redeemed plus the accrued but unpaid interest thereon up to, but not including, the date of redemption. The Notes are reflected on the Company’s June 30, 2019 balance sheet net of deferred financing costs in the amount of approximately $1,270,000 million.

See Note 11 below – Subsequent Events -- for additional financing transactions.