2015-11-15

The following excerpt is from the company's
SEC filing.

Item 1.

Financial Statements (Unaudited)

Consolidated Statements of Assets and Liabilities as of
September 30, 2015 and December 31, 2014

Consolidated Schedule of Investments as of September 30,
2015

Consolidated Schedule of Investments as of December 31, 2014

Consolidated Statements of Operations for the three and nine
months ended September 30, 2015 and 2014

Consolidated Statements of Changes in Net Assets for the nine
months ended September 30, 2015 and for the year ended December 31,
2014

Consolidated Statements of Cash Flows for the nine months ended
September 30, 2015 and 2014

Notes to Consolidated Financial Statements

Item 2.

Managements Discussion and Analysis of Financial Condition and
Results of Operations

Cautionary Statements Regarding Forward-Looking Statements

Overview

Critical Accounting Policies

Portfolio Composition and Investment Activity

Liquidity and Capital Resources

Recent Developments

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

PART II. OTHER INFORMATION

Legal Proceedings

Item 1A.

Risk Factors

Unregistered Sales of Equity Securities and Use of Proceeds

Defaults Upon Senior Securities

Mine Safety Disclosures

Item 5.

Other Information

Item 6.

Exhibits

SIGNATURES

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

TICC CAPITAL CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(unaudited)

Non-affiliated/non-control investments (cost: $970,201,027

@ 9/30/15; $999,433,538 @ 12/31/14)

908,962,186

967,612,035

Affiliated investments (cost: $7,367,738 @ 9/30/15; $4,268,722 @
12/31/14)

5,314,226

1,585,303

Control investments (cost: $16,750,000 @ 9/30/15; $16,800,000 @
12/31/14)

12,904,375

14,960,000

Total investments at fair value (cost: $994,318,765

@ 9/30/15; $1,020,502,260 @ 12/31/14)

927,180,787

984,157,338

Cash and cash equivalents

21,216,120

20,505,323

Restricted cash

18,637,328

20,576,250

Deferred debt issuance costs

4,601,098

5,669,747

Interest and distributions receivable

12,597,507

11,442,289

Securities sold not settled

10,242

Other assets

308,726

290,245

Total assets

984,551,808

1,042,641,192

Accrued interest payable

4,964,485

2,596,564

Investment advisory fee and net investment income incentive fee
payable to affiliate

5,830,902

6,183,486

Securities purchased not settled

2,850,000

11,343,179

Credit facility

150,000,000

Accrued expenses

940,623

629,127

Notes payable TICC CLO 2012-1 LLC, net of discount

236,407,052

236,075,775

Convertible senior notes payable

115,000,000

Total liabilities

515,993,062

521,828,131

COMMITMENTS AND CONTINGENCIES (Note 14)

NET ASSETS

Common stock, $0.01 par value, 100,000,000 share authorized;
59,987,986 and 60,303,769 shares issued and outstanding,
respectively

599,880

603,038

Capital in excess of par value

620,635,767

623,018,818

Net unrealized depreciation on investments

(67,137,978

(36,344,922

Accumulated net realized losses on investments

(65,368,395

(63,212,472

Distributions in excess of investment income

(20,170,528

(3,251,401

Total net assets

468,558,746

520,813,061

Total liabilities and net assets

Net asset value per common share

See Accompanying Notes.

CONSOLIDATED SCHEDULE OF INVESTMENTS

COMPANY/INVESTMENT

INDUSTRY

PRINCIPAL

AMOUNT

FAIR VALUE

Senior Secured Notes

ABB/Con Cise Optical Group

retail

tranche B term loan, PRIME + 2.50% due

February 06, 2019

6,500,000

6,479,139

6,462,105

Algorithmic Implementations, Inc. (d/b/a Ai Squared)

software

senior secured notes, LIBOR + 6.00% (9.84% all-in floor) due
September 11, 2016

13,750,000

Albertsons LLC

grocery

first lien senior secured notes, LIBOR + 4.50% (1.00% floor) due
August 25, 2021

16,875,508

16,902,889

16,865,045

AmeriLife Group

diversified insurance

first lien senior secured notes, LIBOR + 4.75% (1.00% floor) due
July 10, 2022

17,955,000

17,777,846

17,887,669

Amneal Pharmaceuticals LLC

pharmaceuticals

first lien senior secured notes, LIBOR + 4.00% (1.00% floor) due
November 01, 2019

8,902,880

8,889,607

8,880,623

Aricent Technologies, Inc.

telecommunication services

first lien senior secured notes, LIBOR + 4.50% (1.00% floor) due
April 14, 2021

14,811,381

14,770,775

14,686,373

second lien senior secured notes, LIBOR + 8.50% (1.00% floor)
due April 14, 2022

14,000,000

14,003,932

13,851,320

Ascensus, Inc.

financial intermediaries

senior secured notes, LIBOR + 4.00% (1.00% floor) due December
02, 2019

8,888,028

8,898,364

8,865,808

second lien senior secured notes, LIBOR + 8.00% (1.00% floor)
due December 2, 2020

2,000,000

1,976,665

1,992,500

Birch Communications, Inc.

first lien senior secured notes, LIBOR + 6.75% (1.00% floor) due
July 18, 2020

18,544,444

18,276,663

18,498,083

BMC Software Finance, Inc.

business services

first lien senior secured notes, LIBOR + 4.00% (1.00% floor) due
September 10, 2020

4,738,889

4,752,477

4,295,803

Capstone Logistics Acquisition, Inc.

logistics

first lien senior secured notes, LIBOR + 4.50% (1.00% floor) due
October 7, 2021

18,882,437

18,887,469

18,764,422

ConvergeOne Holdings Corp.

first lien senior secured notes, LIBOR + 5.00% (1.00% floor) due
June 17, 2020

17,789,924

17,730,793

17,612,025

second lien senior secured notes, LIBOR + 8.00% (1.00% floor)
due June 17, 2021

3,000,000

2,973,849

2,970,000

CRCI Holdings, Inc. (a/k/a CLEAResult)

utilities

first lien senior secured notes, LIBOR + 4.00% (1.00% floor) due
July 10, 2019

9,822,500

9,795,727

9,760,225

incremental first lien senior secured notes,

LIBOR + 4.25% (1.00% floor) due

6,483,689

6,467,967

6,451,271

Crowne Group, LLC

auto parts manufacturer

first lien senior secured notes, LIBOR + 5.00% (1.00% floor) due
September 30, 2020

5,683,195

5,640,571

(Continued on next page)

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

Senior Secured Notes (continued)

CT Technologies Intermediate Holdings, Inc.

(a/k/a Healthport)

healthcare

first lien senior secured notes, LIBOR + 4.25%, (1.00% floor)
due December 01, 2021

13,421,363

13,372,388

13,359,893

Edmentum, Inc. (f/k/a Plato, Inc.)

education

(1.00% floor) Cash, 2.00% PIK due

June 10, 2019

6,020,503

5,981,924

4,234,400

First American Payment Systems

first lien senior secured notes, LIBOR + 4.50% (1.25% floor) due
October 12, 2018

3,035,078

3,042,700

3,013,590

second lien senior secured notes, LIBOR + 9.50% (1.25% floor)
due April 12, 2019

13,982,241

13,800,767

13,842,419

First Data Corporation

first lien senior secured notes, LIBOR + 4.00% due March 24,
2021

16,050,721

16,011,632

16,010,594

Global Healthcare Exchange

first lien senior secured notes, LIBOR + 4.50% (1.00% floor) due
August 13, 2022

19,000,000

18,983,820

19,047,500

GlobalLogic Holdings Inc.

first lien senior secured notes, LIBOR + 5.25% (1.00% floor) due
June 02, 2019

17,193,750

17,134,105

17,107,781

Global Tel Link Corp

telecommunication services

first lien senior secured notes, LIBOR + 3.75% (1.25% floor) due
May 23, 2020

6,031,345

6,007,356

5,896,725

second lien senior secured notes, LIBOR + 7.75% (1.25% floor)
due November 23, 2020

13,000,000

12,879,264

12,285,000

Help/Systems Holdings, Inc.

senior secured notes, LIBOR + 4.50 (1.00% floor) due June 28,
2019

14,700,000

14,588,359

second lien senior secured notes LIBOR + 8.50% (1.00% floor) due
June 28, 2020

14,826,782

iEnergizer Limited

printing and publishing

first lien senior secured notes, LIBOR + 6.00% (1.25% floor) due
May 01, 2019

5,694,081

5,600,002

5,124,673

Immucor, Inc.

senior secured term B notes, LIBOR + 3.75% (1.25% floor) due
August 19, 2018

4,321,711

4,237,960

4,285,236

Integra Telecom Holdings, Inc

first lien senior secured notes, LIBOR + 4.00% (1.25% floor) due
August 14, 2020

11,258,596

11,220,451

11,181,249

second lien senior secured notes, LIBOR + 8.50%, (1.25% floor)
due February 14, 2021

10,806,404

10,871,433

10,729,895

Jackson Hewitt Tax Service, Inc.

consumer services

first lien senior secured notes, LIBOR + 7.00% (1.50% floor) due
July 30, 2020

18,000,000

17,676,840

17,640,000

Merrill Communications, LLC

first lien senior secured notes, LIBOR + 4.75% (1.00% floor) due
June 01, 2022

23,856,471

23,569,958

23,677,547

NAB Holdings, LLC

first lien senior secured notes, LIBOR + 3.75% (1.00% floor) due
May 21, 2021

17,780,000

17,662,039

17,691,100

Novetta, LLC

aerospace and defense

first lien senior secured notes, LIBOR + 5.00% (1.00% floor) due
October 2, 2020

12,622,500

12,526,428

12,559,388

Novitex Enterprise Solutions (f/k/a Pitney Bowes Management
Services, Inc.)

first lien senior secured notes, LIBOR + 6.25% (1.25% floor) due
July 07, 2020

15,661,650

15,576,944

14,721,951

PGX Holdings

first lien senior secured notes, LIBOR + 4.75% (1.00% floor) due
September 29,2020

14,835,714

14,807,219

14,829,483

Petco Animal Supplies, Inc.

first lien senior secured notes, LIBOR + 3.00% (1.00% floor) due
November 24, 2017

5,937,662

5,905,818

5,927,034

Petsmart, Inc.

first lien senior secured notes, LIBOR + 4.00% (1.00% floor) due
March 11, 2022

5,985,000

6,008,065

5,969,439

ProQuest LLC

senior secured notes, LIBOR + 4.25% (1.00% floor) due October
24, 2021

5,954,927

5,988,340

5,944,982

RBS Holding Company

second lien senior secured notes, PRIME + 7.00% due March 23,
2016

22,759,516

15,491,384

18,913,158

Recorded Books, Inc. (f/k/a Volume Holdings, Inc.)

senior secured notes, LIBOR + 4.50% (1.00% floor) due July 31,
2021

8,955,478

8,955,000

SCS Holdings I Inc. (Sirius Computer Solutions, Inc.)

electronics

first lien senior secured notes, LIBOR + 5.75% (1.25% floor) due
December 07, 2018

8,009,615

8,025,776

Securus Technologies, Inc.

first lien senior secured notes, LIBOR + 3.50% (1.25% floor) due
April 30, 2020

5,899,812

5,858,793

5,698,864

second lien senior secured notes, LIBOR + 7.75% (1.25% floor)
due April 30, 2021

6,400,000

6,375,238

5,752,000

Sesac Holdco II LLC

radio and television

first lien senior secured notes, LIBOR + 4.00% (1.00% floor) due
February 08, 2019

14,023,105

14,034,750

13,988,047

Serena Software Inc.

enterprise software

first lien senior secured notes, LIBOR + 6.50% (1.00% floor) due
April 14, 2020

18,691,246

18,376,270

18,613,304

Source Hov, LLC

first lien senior secured notes, LIBOR + 6.75% (1.00% floor) due
October 31, 2019

17,662,500

17,202,191

15,918,328

second lien senior secured notes, LIBOR + 10.50% (1.00% floor)
due April 30, 2020

14,468,082

12,900,000

Stratus Technologies, Inc.

computer hardware

first lien senior secured notes, LIBOR + 5.00% (1.00% floor) due
April 28, 2021

17,354,167

17,211,347

17,252,992

Teleguam Holdings LLC

second lien senior secured notes, LIBOR + 7.50% (1.25% floor)
due June 10, 2019

7,975,044

7,960,000

The TOPPS Company, Inc.

leisure goods

first lien senior secured notes, LIBOR + 6.00% (1.25% floor) due
October 02, 2018

9,825,000

9,756,578

9,628,500

Total Merchant Services, Inc.

first lien senior secured notes, LIBOR + 5.50% (1.00% floor) due
December 5, 2020

15,880,000

15,737,128

15,959,400

Travel Leaders Group, LLC

travel

first lien senior secured notes, LIBOR + 6.00% (1.00% floor) due
December 07, 2020

14,600,000

14,376,711

14,563,500

Unitek Global Services, Inc.

IT consulting

first lien senior secured tranche B term loan,

LIBOR + 7.50%, (1.00% floor) due January 13, 2019

2,638,748

2,605,645

2,498,894

U.S. Telepacific Corp.

first lien senior secured notes, LIBOR + 5.00% (1.00% floor) due
November 25, 2020

9,925,000

9,832,837

9,875,375

Vision Solutions

first lien senior secured notes, LIBOR + 4.50% (1.50% floor) due
July 23, 2016

4,728,153

4,698,873

4,722,243

second lien senior secured notes, LIBOR + 8.00% (1.50% floor)
due July 23, 2017

10,000,000

9,970,413

9,950,000

Wall Street Systems

first lien senior secured notes, LIBOR + 3.50% (1.00% floor) due
April 30, 2021

8,124,639

8,128,033

8,080,603

Total Senior Secured Notes

685,378,522

680,407,920

Subordinated Debt

Holdco PIK Debt Cash 0.00%, 15.00% PIK, due July 13, 2019

555,554

550,093

508,332

Total Subrodinated Debt

Collateralized Loan Obligation Debt Investments

Telos CLO 2013-3, Ltd.

structured finance

CLO secured class F notes, LIBOR + 5.50% due January 17,
2024

3,000,000

2,762,650

2,300,700

Total Collateralized Loan Obligation Debt Investments

Collateralized Loan Obligation Equity Investments

AMMC CLO XI, Ltd.

CLO subordinated notes, estimated yield 14.12% due October 30,
2023

6,000,000

3,527,288

3,600,000

AMMC CLO XII, Ltd.

CLO subordinated notes, estimated yield 11.18% due May 10,
2025

12,921,429

8,867,391

7,752,857

Collateralized Loan Obligation Equity Investments
(continued)

Ares XXV CLO Ltd.

CLO subordinated notes, estimated yield 4.76% due January 17,
2024

15,500,000

11,503,418

8,370,000

Ares XXVI CLO Ltd.

CLO subordinated notes, estimated yield 9.80% due April 15,
2025

14,250,000

10,577,547

7,346,757

Ares XXIX CLO Ltd.

CLO subordinated notes, estimated yield 11.92% due April 17,
2026

12,750,000

10,338,546

7,440,953

Benefit Street Partners CLO II, Ltd.

CLO subordinated notes, estimated yield 13.65% due July 15,
2024

23,450,000

22,638,457

19,850,265

Carlyle Global Market Strategies

CLO 2013-2, Ltd.

CLO subordinated notes, estimated yield 16.98% due April 18,
2025

10,125,000

7,789,656

7,028,021

CLO 2014-4, Ltd.

CLO subordinated notes, estimated yield 15.98% due October 15,
2026

25,784,000

19,477,450

17,902,222

Catamaran CLO 2012-1 Ltd.

CLO subordinated notes, estimated yield (.40%) due December 20,
2023

22,000,000

17,096,038

9,055,200

Catamaran CLO 2013-1 Ltd.

CLO subordinated notes, estimated yield 7.14% due January 27,
2025

8,517,770

Cedar Funding II CLO, Ltd.

CLO subordinated notes, estimated yield 10.73% due March 9,
2025

18,750,000

14,817,101

12,515,625

CIFC Funding 2012-1, Ltd.

CLO subordinated notes, estimated yield 13.64% due August 14,
2024

8,400,000

7,905,000

Halcyon Loan Advisors Funding 2012-2 Ltd.

CLO subordinated notes, estimated yield 16.15% due December 20,
2024

7,500,000

5,940,551

5,156,250

Halcyon Loan Advisors Funding 2014-2 Ltd.

CLO subordinated notes, estimated yield 15.72% due April 28,
2025

6,551,394

5,520,000

Hull Street CLO Ltd.

CLO subordinated notes, estimated yield 16.31% due October 18,
2026

4,157,285

3,025,500

Ivy Hill Middle Market Credit Fund VII, Ltd.

CLO subordinated notes, estimated yield 14.85% due October 20,
2025

12,549,004

11,783,733

Jamestown CLO V Ltd.

CLO subordinated notes, estimated yield 15.30% due January 17,
2027

6,196,275

4,000,800

Marea CLO, Ltd.

CLO subordinated notes, estimated yield 5.54% due October 15,
2023

14,217,000

11,642,231

7,160,315

MidOcean Credit CLO IV

CLO income notes, estimated yield 19.59% due April 15, 2027

9,500,000

8,620,993

8,455,000

Mountain Hawk III CLO, Ltd.

CLO income notes, estimated yield 7.59% due April 18, 2025

12,379,826

6,403,308

CLO M notes due April 18, 2025

2,389,676

539,194

Newmark Capital Funding 2013-1 CLO Ltd.

CLO income notes, estimated yield 12.71% due June 2, 2025

20,000,000

14,530,875

11,400,000

Och Ziff CLO XII, Ltd.

CLO subordinated notes, estimated yield 14.22% due April 30,
2027

13,850,000

13,170,498

12,465,000

CS Advisors CLO I Ltd.

CLO subordinated notes, estimated yield (46.37%) due August 27,
2020

10,100,000

1,809,726

50,500

Shackleton 2013-III CLO, Ltd.

CLO subordinated notes, estimated yield 8.67% due April 15,
2025

9,407,500

8,159,594

5,101,978

Shackleton 2013-IV CLO, Ltd.

CLO subordinated notes, estimated yield 11.72% due January 13,
2025

21,500,000

18,320,851

12,747,015

CLO subordinated notes, estimated yield 11.05% due January 17,
2024

10,416,666

8,544,099

7,083,333

Telos CLO 2013-4, Ltd.

CLO subordinated notes, estimated yield 20.39% due July 17,
2024

6,478,082

6,287,445

Telos CLO 2014-5, Ltd.

CLO subordinated notes, estimated yield 14.04% due April 17,
2015

10,500,000

8,450,800

6,235,847

Windriver 2012-1 CLO, Ltd.

CLO subordinated notes, estimated yield 16.14% due January 15,
2024

5,650,357

5,446,771

CLO equity side letter related

3,103,898

Total Collateralized Loan Obligation Equity Investments

296,703,103

237,232,787

Common Stock

common stock

Integra Telecom Holdings, Inc.

775,846

1,712,397

4,424,048

AMOUNT/SHARES

Common Stock (continued)

common equity

815,266

535,000

Total Common Stock

5,247,397

4,424,048

Preferred Equity

Series A Preferred Equity

5,706,866

3,677,000

2,307,000

Total Preferred Equity

3,677,000

2,307,000

Total Investments

994,318,765

927,180,787

Other than Algorithmic Implementation, Inc. (d/b/a Ai Squared),
which we may be deemed to control and Unitek Global Services, Inc.,
of which we are deemed to be an affiliate. We do not control and
are not an affiliate of any of our portfolio companies, each as
defined in the Investment Company Act of 1940 (the 1940 Act). In
general, under the 1940 Act, we would be presumed to control a
portfolio company if we owned 25% or more of its voting securities
and would be an affiliate of a portfolio company if we owned 5% or
more of its voting securities.

Fair value is determined in good faith by the Board of Directors
of the Company.

Portfolio includes $29,335,573 of principal amount of debt
investments which contain a PIK provision at September 30, 2015, or
during the quarter then ended.

Notes bear interest at variable rates.

Cost value reflects accretion of original issue discount or
market discount.

Cost value reflects repayment of principal.

Non-income producing at the relevant period end.

Aggregate gross unrealized appreciation for federal income tax
purposes is $12,829,314; aggregate gross unrealized depreciation
for federal income tax purposes is $127,966,167. Net unrealized
depreciation is $115,136,853 based upon a tax cost basis of
$1,042,317,640.

All or a portion of this investment represents collateral under
the TICC Funding LLC credit facility.

All or a portion of this investment represents TICC CLO 2012-1
LLC collateral.

Indicates assets that the Company believes do not represent
qualifying assets under Section 55(a) of the Investment Company Act
of 1940, as amended. Qualifying assets must represent at least 70%
of the Company's total assets at the time of acquisition of any
additional non-qualifying assets.

Investment not domiciled in the United States.

Fair value represents discounted cash flows associated with fees
earned from CLO equity investments.

Aggregate investments represent greater than 5% of net
assets.

The principal balance outstanding for this debt investment, in
whole or in part, is indexed to 90-day LIBOR.

The principal balance outstanding for this debt investment, in
whole or in part, is indexed to 1 year LIBOR.

The principal balance outstanding for this debt investment, in
whole or in part, is indexed to 30-day LIBOR

The principal balance outstanding for this debt investment, in
whole or in part, is indexed to 180-day LIBOR

The CLO subordinated notes and income notes are considered
equity positions in the CLO funds. Equity investments are entitled
to recurring distributions which are generally equal to the
remaining cash flow of the payments made by the underlying fund's
securities less contractual payments to debt holders and fund
expenses. The estimated yield indicated is based upon a current
projection of the amount and timing of these recurring
distributions and the estimated amount of repayment of principal
upon termination. Such projections are periodically reviewed and
adjusted, and the estimated yield may not ultimately be
realized.

DECEMBER 31, 2014

% OF NET

tranche B term loan, LIBOR + 3.50% (1.00% floor) due February
06, 2019

6,541,775

6,517,166

6,378,231

13,800,000

first lien senior secured notes, 4.50% due April 14, 2021

13,009,539

12,986,480

4,991,646

4,971,679

4,972,927

14,923,753

14,877,921

14,874,057

14,005,937

13,982,500

Novitex Enterprise Solutions (F/K/A Pitney Bowes Management
Services, Inc.)

first lien senior secured notes, LIBOR + 6.25% (1.25% floor) due
October 01, 2019

15,840,300

15,746,596

15,048,285

9,402,519

9,415,372

9,320,247

1,974,098

1,976,260

15,544,444

15,270,572

15,233,555

Blue Coat System, Inc.

first lien senior secured notes, LIBOR + 3.00% (1.00% floor) due
May 31, 2019

3,979,856

3,996,178

3,832,601

second lien senior secured notes, LIBOR + 8.50% (1.00% floor)
due June 28, 2020

14,874,235

14,625,000

4,776,389

4,791,903

4,636,106

first lien senior secured notes, LIBOR + 4.50% (1.00% floor) due
June 17, 2020

13,965,000

14,024,103

13,877,719

15,920,000

15,864,439

15,840,400

2,971,530

2,910,000

9,897,500

9,866,707

9,610,473

first lien senior secured notes, LIBOR + 5.00%, (1.00% floor)
due December 01, 2021

8,969,867

8,932,500

Deltek Systems, Inc.

first lien senior secured notes, LIBOR + 3.50% (1.00% floor) due
October 10, 2018

4,557,000

4,534,433

4,500,038

second lien senior secured notes, LIBOR + 8.75% (1.25% floor)
due October 10, 2019

9,899,125

10,025,000

Edmentum, Inc. (F/K/A Plato, Inc.)

first lien senior secured notes, LIBOR + 4.50% (1.00% floor) due
May 17, 2018

6,508,724

6,455,462

5,272,066

first lien senior secured notes, LIBOR + 4.50% (1.25% floor) due
October 04, 2018

3,044,185

3,002,845

13,766,556

13,860,036

first lien senior secured notes, (LIBOR + 4.00%) due March 24,
2021

16,007,723

15,797,601

17,325,000

17,255,320

17,065,125

6,081,329

6,057,284

6,010,360

12,862,984

12,685,790

14,812,500

14,688,520

14,590,313

14,809,418

14,775,000

6,682,947

6,120,000

4,355,040

4,257,926

4,291,064

first lien senior secured notes, LIBOR + 4.00% (1.25% floor) due
February 22, 2019

10,341,486

10,302,601

10,037,757

second lien senior secured notes, LIBOR + 8.50%, (1.25% floor)
due February 22, 2020

8,850,000

8,896,162

8,772,563

first lien senior secured notes, LIBOR + 8.50% (1.25% floor) due
October 16, 2017

20,682,892

20,152,560

20,579,478

Knowledge Universe Education

first lien senior secured notes, LIBOR + 4.25% (1.00% floor) due
March 18, 2021

10,947,425

10,982,820

10,920,056

first lien senior secured notes, LIBOR + 4.75% (1.00% floor) due
March 08, 2018

17,083,900

17,084,727

16,955,771

17,915,000

17,784,542

17,803,031

Nextag, Inc.

senior secured notes, Cash 0.00%/9.25% PIK, due

June 04, 2019

2,264,719

2,264,720

first lien senior secured notes, LIBOR + 5.00% (1.00% floor) due
September 29, 2020

12,718,125

12,610,453

12,654,534

first lien senior secured notes, LIBOR + 5.25% (1.00% floor) due
September 29, 2020

15,403,125

15,367,784

15,383,871

5,984,416

5,941,589

5,907,097

Presidio IS Corp.

senior secured notes, LIBOR + 4.00% (1.00% floor) due March 31,
2017

8,331,082

8,315,126

8,305,091

6,037,262

5,940,000

second lien senior secured notes, LIBOR + 6.75% (1.50% floor)
cash 1.25% PIK due March 23, 2017

22,731,656

12,520,134

15,502,989

Recorded Books, Inc. (F/K/A Volume Holdings, Inc.)

senior secured notes, LIBOR + 4.25% (1.00% floor) due January
31, 2020

9,300,000

9,213,403

9,207,000

Safenet, Inc.

first lien senior secured notes PRIME + 3.5% due March 05,
2020

9,837,828

3,388,942

3,363,761

5,944,956

5,898,190

5,858,754

6,370,703

6,272,000

14,384,593

14,397,006

14,231,829

19,640,149

19,768,800

17,471,194

17,460,000

14,405,564

14,287,500

STG-Fairway Acquisitions

first lien senior secured notes, LIBOR + 5.00% (1.25% floor) due
February 28, 2019

9,211,018

9,141,920

9,038,311

19,075,000

18,909,604

18,939,949

Symphony Teleca Services Inc.

first lien senior secured notes, LIBOR + 4.75% (1.00% floor) due
August 07, 2019

16,000,000

15,847,256

15,840,000

7,962,890

7,952,000

9,900,000

9,816,492

9,603,000

financial intermediary

15,840,699

first lien senior secured notes, LIBOR + 6.00% (1.00% floor) due
December 05, 2018

15,200,000

14,934,118

15,124,000

tranche B term loan, LIBOR + 13.50%, (1.50% floor) Cash
0.00%/PIK 15.00% due April 15, 2018

12,772,315

11,608,604

6,667,148

9,900,312

9,779,200

US FT HoldCo. Inc. (A/K/A Fundtech)

first lien senior secured notes, LIBOR + 3.50% (1.00% floor) due
November 30, 2017

6,207,712

6,227,876

6,139,427

5,248,096

5,202,145

5,195,615

second lien senior secured notes, LIBOR + 8.00% (1.50% floor)
due July 23, 2016

9,958,342

9,600,000

5,878,332

5,863,887

5,654,955

705,342,148

696,953,550

Senior Unsecured Notes

senior unsecured PIK notes Cash 0.00%/10.00% PIK, due March 08,
2023

6,351,153

3,724,816

Total Senior Unsecured Notes

CLO secured class F notes, LIBOR + 5.05% due May 10, 2025

4,500,000

3,936,123

3,701,250

CLO secured class F notes, LIBOR + 5.40% due April 18, 2025

5,183,376

5,122,200

2,744,951

2,521,200

11,864,450

11,344,650

ACAS CLO 2012-1, Ltd.

CLO subordinated notes due September 20, 2023

4,050,000

CLO subordinated notes due May 10, 2025

9,949,500

9,303,429

CLO subordinated notes due January 17, 2024

12,620,875

10,850,000

CLO subordinated notes due April 15, 2025

22,750,000

18,295,625

15,479,495

CLO subordinated notes due April 17, 2026

11,156,250

10,784,314

CLO subordinated notes due July 15, 2024

24,704,625

22,760,050

Carlyle Global Market Strategies CLO 2013-2, Ltd.

CLO subordinated notes due April 18, 2025

7,848,089

Carlyle Global Market Strategies CLO 2014-4, Ltd.

CLO subordinated notes due October 15, 2026

22,689,920

21,916,400

CLO subordinated notes due December 20,

20,075,000

14,520,000

CLO subordinated notes due January 27, 2025

9,750,000

8,300,000

CLO subordinated notes due March 9, 2025

15,631,250

14,062,500

7,200,000

CLO subordinated notes due October 18, 2026

4,412,500

CLO subordinated notes due October 20, 2025

13,272,000

11,343,930

CLO subordinated notes due January 17, 2027

CLO subordinated notes due October 15, 2023

12,644,215

10,750,460

CLO income notes due April 18, 2025

13,473,000

11,729,070

570,082

CLO income notes due June 2, 2025

16,400,000

15,400,000

CLO subordinated notes due August 27, 2020

4,543,935

2,070,500

13,407,500

13,073,425

10,496,657

CLO subordinated notes due January 13, 2025

20,573,750

17,688,284

12,666,666

11,558,333

10,639,999

CLO subordinated notes due April 17, 2015

9,450,000

7,671,510

Other CLO equity related investments

CLO other

3,816,649

289,429,203

259,813,918

1,160,000

4,258,112

728,442

3,425,244

4,275,955

11,226,123

2,004,002

Total Common Stock Investments

10,141,643

9,694,067

Warrants

warrants to purchase common stock

309,080

Total Warrants

Other than Algorithmic Implementation, Inc. (d/b/a Ai Squared),
which we may be deemed to control and Nextag, Inc., of which we are
deemed to be an affiliate. We do not control and are not an
affiliate of any of our portfolio companies, each as defined in the
Investment Company Act of 1940 (the 1940 Act). In general, under
the 1940 Act, we would be presumed to control a portfolio company
if we owned 25% or more of its voting securities and would be an
affiliate of a portfolio company if we owned 5% or more of its
voting securities.

Portfolio includes $44,119,843 of principal amount of debt
investments which contain a PIK provision.

Aggregate gross unrealized appreciation for federal income tax
purposes is $14,859,779; aggregate gross unrealized depreciation
for federal income tax purposes is $69,463,970. Net unrealized
depreciation is $54,604,191 based upon a tax cost basis of
$1,038,761,529.

All or a portion of this investment represents collateral under
the revolving credit agreement.

Indicates assets that the Company believes do not represent
qualifying assets under Section 55(a) of the Investment Company Act
of 1940, as amended. Qualifying assets must represent at least 70%
of the Companys total assets at the time of acquisition of any
additional non-qualifying assets.

Aggregate investments represent greater than 5% of net assets on
a fair value basis.

Investment is on non-accrual status. During the period ended
December 31, 2014, the investment defaulted on its principal and
interest payments.

The principal balance outstanding for this debt investment, in
whole or in part, is indexed to 30-day LIBOR.

The principal balance outstanding for this debt investment, in
whole or in part, is indexed to 180-day LIBOR.

The principal balance outstanding for this debt investment, in
whole or in part, is indexed to 60-day LIBOR.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months

Ended

Nine Months

INVESTMENT INCOME

From non-affiliated/non-control investments:

Interest income debt investments

13,720,125

12,727,990

39,025,069

38,350,310

Income from securitization vehicles and investments

8,617,121

15,170,869

26,396,541

45,047,290

Commitment, amendment fee income and other income

372,935

1,877,067

1,985,306

4,267,879

Total investment income from non-affiliated/non-control
investments

22,710,181

29,775,926

67,406,916

87,665,479

From affiliated investments:

78,616

50,436

221,097

65,139

Total investment income from affiliated investments

From control investments:

345,591

349,361

1,026,283

1,036,691

Total investment income from control investments

23,134,388

30,175,723

68,654,296

88,767,309

EXPENSES

Compensation expense

89,660

472,903

965,293

1,399,476

Investment advisory fees

5,255,583

5,366,277

15,574,269

15,764,248

Professional fees

818,926

603,940

2,330,702

1,601,883

Interest expense and other debt financing expenses

5,031,343

4,963,796

14,969,915

14,805,182

General and administrative

488,939

384,543

1,673,389

1,567,799

Total expenses before incentive fees

11,684,451

11,791,459

35,513,568

35,138,588

Net investment income incentive fees

575,319

1,701,699

(929,933

4,806,278

Capital gains incentive fees

(837,963

(3,872,853

Total incentive fees

863,736

933,425

12,259,770

12,655,195

34,583,635

36,072,013

10,874,618

17,520,528

34,070,661

52,695,296

Net change in unrealized appreciation/depreciation on
investments

Non-Affiliate/non-control investments

(37,399,544

(15,123,443

(34,358,991

(18,359,672

(1,610,530

(198,545

5,571,560

3,728,836

(2,005,625

(740,000

Total net change in unrealized appreciation/depreciation on
investments

(41,015,699

(15,321,988

(30,793,056

(15,370,836

Net realized gains/(losses) on investments

Non-Affiliated/non-control investments

406,343

(3,460,465

4,606,405

(6,925,632

(6,762,328

(5,264,838

Total net realized gains/(losses) on investments

(2,155,923

(12,190,470

Net (decrease) increase in net assets resulting from
operations

(29,734,738

(1,261,925

1,121,682

25,133,990

Net increase in net assets resulting from net investment income
per common share:

Diluted

Net (decrease) increase in net assets resulting from operations
per common share:

(0.50

(0.02

Weighted average shares of common stock outstanding:

60,268,078

59,997,565

58,307,825

70,021,138

70,301,230

70,030,717

68,340,977

Distributions per share

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

Increase (decrease) in net assets from operations:

34,070,661

65,457,844

Net realized losses on investments

(19,492,649

Net change in unrealized appreciation/(depreciation) on
investments

(49,313,595

Net increase (decrease) in net assets resulting from
operations

(3,348,400

Distributions to shareholders

Distributions from net investment income

(50,989,788

(60,189,322

Tax return of capital distributions

(9,697,552

Total distributions to shareholders

(69,886,874

Capital share transactions:

Issuance of common stock (net of offering costs of $0 and
$2,033,950, respectively)

66,411,050

Repurchase of common stock

(2,386,209

(1,172,574

Reinvestment of distributions

2,567,433

Net (decrease)/increase in net assets from capital share
transactions

67,805,909

Total decrease in net assets

(52,254,315

(5,429,365

Net assets at beginning of period

526,242,426

Net assets at end of period (including over distributed net
investment income of $20,170,528 and $3,251,401, respectively)

468,558,746

520,813,061

Capital share activity:

Shares sold

Shares repurchased

(315,783

(154,600

Shares issued from reinvestment of distributions

307,624

Net (decrease) increase in capital share activity

6,903,024

CONSOLIDATED STATEMENTS OF CASH FLOWS

CASH FLOWS FROM OPERATING ACTIVITIES

Net increase in net assets resulting from operations

25,133,989

Adjustments to reconcile net increase in net assets resulting
from operations to net cash used by operating activities:

Accretion of discounts on investments

(30,137,613

(2,084,266

Accretion of discount on notes payable and deferred debt
issuance costs

1,400,334

1,394,558

Increase in investments due to PIK

(519,286

(966,960

Purchases of investments

(215,296,186

(355,027,153

Repayments of principal and reductions to investment cost
value

210,451,894

220,455,237

Proceeds from the sale of investments

51,024,934

102,755,346

Increase in interest and distributions receivable

(1,155,218

(2,012,971

Increase in other assets

(18,481

(374,667

Increase in accrued interest payable

2,367,921

2,154,771

Decrease in investment advisory fee payable

(352,584

(76,504

Decrease in accrued capital gains incentive fee

Increase in accrued expenses

311,496

367,040

Net cash provided (used) by operating activities

52,147,872

15,406,873

CASH FLOWS FROM INVESTING ACTIVITIES

Change in restricted cash

1,938,922

(18,610,225

Net cash provided (used) by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from the issuance of common stock

68,445,000

Offering expenses from the issuance of common stock

(2,033,950

Distributions paid (net of stock issued under dividend
reinvestment plan of $0 and $1,847,625, respectively)

(50,535,499

Net cash (used) provided by financing activities

(53,375,997

15,875,551

Net increase in cash and cash equivalents

710,797

12,672,200

Cash and cash equivalents, beginning of period

14,933,074

Cash and cash equivalents, end of period

21,216,120

27,605,274

NON-CASH FINANCING ACTIVITIES

Value of shares issued in connection with dividend reinvestment
plan

1,847,625

SUPPLEMENTAL DISCLOSURES

10,242

2,850,000

10,721,250

Cash paid for interest

11,201,660

11,255,851

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. UNAUDITED INTERIM FINANCIAL STATEMENTS

Interim consolidated financial statements of TICC Capital Corp.
(TICC and, together with its subsidiaries, the Company) are
prepared in accordance with generally accepted accounting
principles (GAAP) for interim financial information and pursuant to
the requirements for reporting on Form 10-Q and Article 10 of
Regulation S-X. Accordingly, certain disclosures accompanying
annual financial statements prepared in accordance with GAAP are
omitted. In the opinion of management, all adjustments, consisting
of normal recurring accruals, necessary for the fair statement of
consolidated financial results for the interim periods have been
included. The current periods consolidated results of operations
are not necessarily indicative of results that may be achieved for
the year. The interim consolidated financial statements and notes
thereto should be read in conjunction with the financial statements
and notes thereto included in the Companys Form 10-K for the year
ended December 31, 2014, as filed with the Securities and Exchange
Commission (SEC).

NOTE 2. ORGANIZATION

TICC was incorporated under the General Corporation Laws of the
State of Maryland on July 21, 2003 and is a non-diversified,
closed-end investment company. TICC has elected to be treated as a
business development company under the Investment Company Act of
1940, as amended (the 1940 Act). In addition, TICC has elected to
be treated for tax purposes as a regulated investment company
(RIC), under Subchapter M of the Internal Revenue Code of 1986, as
amended (the Code). The Companys investment objective is to
maximize its total return, by investing primarily in corporate debt
securities.

TICCs investment activities are managed by TICC Management, LLC
(TICC Management), a registered investment adviser under the
Investment Advisers Act of 1940, as amended. BDC Partners, LLC (BDC
Partners) is the managing member of TICC Management and serves as
the administrator of TICC.

The Companys operations include the activities of its
wholly-owned subsidiary, TICC Capital Corp. 2011-1 Holdings, LLC
(Holdings), TICC CLO LLC (2011 Securitization Issuer or TICC CLO),
TICC CLO 2012-1 LLC (2012 Securitization Issuer or TICC CLO 2012-1)
and TICC Funding, LLC (TICC Funding) for the periods in which they
were held. These subsidiaries were formed for the purpose of
enabling the Company to obtain debt financing and are operated
solely for the investment activities of the Company, and the
Company has substantial equity at risk. TICC Funding was formed on
September 17, 2014, for the purpose of entering into a credit and
security agreement with Citibank, N.A., to replace the financing
previously obtained through TICC CLO. TICC CLO effectively ceased
operations on October 27, 2014, and the notes payable by TICC CLO
were repaid with borrowings under the debt facility of TICC
Funding. See Note 7. Borrowings for additional information on the
Companys subsidiaries and their borrowings.

NOTE 3. CHANGE OF ACCOUNTING FOR COLLATERALIZED LOAN OBLIGATION
EQUITY INVESTMENT INCOME

During the first quarter of 2015, the Company identified a
non-material error in its accounting for income from Collateralized
Loan Obligation (CLO) equity investments. The Company had recorded
income from its CLO equity investments using the dividend
recognition model as described in ASC 946-320; specifically,
dividends were recognized on the applicable record date, subject to
estimation and collectability, with a reduction to cost basis in
those instances where the Company believed that a return of capital
had occurred. The Company has determined that the appropriate
method for recording investment income on CLO equity investments is
the effective yield method as described in ASC 325-40. This method
requires the calculation of an effective yield to expected
redemption based upon an estimation of the amount and timing of
future cash flows, including recurring cash flows as well as future
principal repayments; the difference between the actual cash
received (and record date distributions to be received) and the
effective yield income calculation is an adjustment to cost. The
effective yield is reviewed quarterly and adjusted as
appropriate.

NOTE 3. CHANGE OF ACCOUNTING FOR COLLATERALIZED LOAN OBLIGATION
EQUITY INVESTMENT INCOME (continued)

The difference between the two methods resulted in an income
reclassification error which would generally have resulted in a
decrease in total investment income with a corresponding and
offsetting increase to net change in unrealized
appreciation/depreciation on investments and net realized
gains/losses on investments. The Company quantified this error and
assessed it in accordance with the guidance provided in SEC Staff
Accounting Bulletin (SAB) 108,

Considering the Effects of Prior Year Misstatements When
Quantifying Misstatements in Current Year Financial Statements

. Based on this assessment, the Company concluded that the error
in income classification did not have a material impact on the
Companys previously filed consolidated financial statements.

As a result of this misclassification of income, net investment
income incentive fees were overstated by approximately $2.4 million
on a cumulative basis through 2014 and, as a result, total net
assets as of December 31, 2014 were understated by the same amount,
approximately $0.04 per share. The Company also considered this
indirect impact of the error in classification, concluded that the
error was not material to the Companys previously filed
consolidated financial statements. The error was corrected by an
out-of-period adjustment in the first quarter of 2015, reducing net
investment income incentive fees by approximately $2.4 million and
recognizing a corresponding due from affiliate of $2.4 million.
TICC Management repaid in full to TICC, on April 30, 2015, the
portion of its previously paid net investment income incentive fees
attributable to the overstated amounts.

Prospectively as of January 1, 2015, the Company records income
from its CLO equity investments using the effective yield method in
accordance with the accounting guidance in ASC 325-40,

Beneficial Interests in Securitized Financial Assets

, based upon an estimation of an effective yield to maturity
utilizing assumed cash flows.

NOTE 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying consolidated financial statements include the
accounts of the Company and its wholly-owned subsidiaries,
Holdings, TICC CLO, TICC CLO 2012-1 and TICC Funding. All
inter-company accounts and transaction have been eliminated in
consolidation.

During the quarter ended September 30, 2015, the Company
recorded an out of period adjustment related to a miscalculation of
discount accretion which increased interest income and increased
investment cost, by approximately $1.4 million. The increase in the
investment cost has a corresponding effect on the investment's
unrealized depreciation of the same amount. Management concluded
the adjustment was not material to previously filed financial
statements.

The Company follows the accounting and reporting guidance in
FASB Accounting Standards Codification 946.

USE OF ESTIMATES

The consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the
United States of America that require management to make estimates
and assumptions that affect the amounts reported in the
consolidated financial statements and accompanying notes. Actual
results may differ from those estimates.

In the normal course of business, the Company may enter into
contracts that contain a variety of representations and provide
indemnifications. The Companys maximum exposure under these
arrangements is unknown as this would involve future claims that
may be made against the Company that have not yet occurred.
However, based upon experience, the Company expects the risk of
loss to be remote.

NOTE 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)

CONSOLIDATION

As provided under Regulation S-X and ASC Topic 946-810 Financial
Services Investment Companies, the Company will generally not
consolidate its investment in a company other than a wholly-owned
investment company or a controlled operating company whose business
consists of providing services to the Company. TICC CLO, TICC CLO
2012-1 and TICC Funding would be considered investment companies
but for the exceptions under Sections 3(c)(1) and 3(c)(7) under the
1940 Act, and were established solely for the purpose of allowing
the Company to borrow funds for the purpose of making investments.
The Company owns all of the equity in these entities and controls
the decision making power that drives their economic performance.
Accordingly, the Company consolidates the results of the Companys
wholly-owned subsidiaries in its financial statements, and follows
the accounting and reporting guidance in ASC 946-810.

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Cash and cash equivalents consist of demand deposits and highly
liquid investments with original maturities of three months or
less. Cash and cash equivalents are carried at cost or amortized
cost which approximates fair value. At September 30, 2015 and
December 31, 2014, cash and cash equivalents consisted solely of
demand deposits.

Restricted cash represents the cash held by the trustees of the
Companys CLO and special purpose vehicle subsidiaries. These
amounts are held by the trustee for payment of interest expense and
operating expenses of the entity, principal repayments on
borrowings, or new investments, based upon the terms of the
respective indenture, and are not available for general corporate
purposes.

INVESTMENT VALUATION

The Company fair values its investment portfolio in accordance
with the provisions of ASC 820,

Fair Value Measurement and Disclosure

. Estimates made in the preparation of TICCs consolidated
financial statements include the valuation of investments and the
related amounts of unrealized appreciation and depreciation of
investments recorded. TICC believes that there is no single
definitive method for determining fair value in good faith. As a
result, determining fair value requires that judgment be applied to
the specific facts and circumstances of each portfolio investment
while employing a consistently applied valuation process for the
types of investments TICC makes.

ASC 820-10 clarified the definition of fair value and requires
companies to expand their disclosure about the use of fair value to
measure assets and liabilities in interim and annual periods
subsequent to initial recognition. ASC 820-10 defines fair value as
the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at the measurement date. ASC 820-10 also establishes a
three-tier fair value hierarchy, which prioritizes the inputs used
in measuring fair value. These tiers include: Level 1, defined as
observable inputs such as quoted prices in active markets; Level 2,
which includes inputs such as quoted prices for similar securities
in active markets and quoted prices for identical securities in
markets that are not active; and Level 3, defined as unobservable
inputs for which little or no market data exists, therefore
requiring an entity to develop its own assumptions. TICC considers
the attributes of current market conditions on an on-going basis
and has determined that due to the general illiquidity of the
market for its investment portfolio, whereby little or no market
data exists, almost all of TICCs investments are based upon Level 3
inputs as of September 30, 2015.

TICCs Board of Directors determines the value of its investment
portfolio each quarter. In connection with that determination,
members of TICC Managements portfolio management team prepare a
quarterly analysis of each portfolio investment using the most
recent portfolio company financial statements, forecasts and other
relevant financial and operational information. Since March 2004,
TICC has engaged third-party valuation firms to provide assistance
in valuing certain of its syndicated loans and bilateral
investments,

including related equity investments, although TICCs Board of
Directors ultimately determines the appropriate valuation of each
such investment. Changes in fair value, as described above, are
recorded in the statement of operations as net change in unrealized
appreciation or depreciation.

Syndicated Loans

In accordance with ASC 820-10-35, TICCs valuation procedures
specifically provide for the review of indicative quotes supplied
by the large agent banks that make a market for each security.
However, the marketplace from which TICC obtains indicative bid
quotes for purposes of determining the fair value of its syndicated
loan investments has shown attributes of illiquidity as described
by ASC-820-10-35. During such periods of illiquidity, when TICC
believes that the non-binding indicative bids received from agent
banks for certain syndicated investments that we own may not be
determinative of their fair value or when no market indicative
quote is available, TICC may engage third-party valuation firms to
provide assistance in valuing certain syndicated investments that
TICC owns. In addition, TICC Management prepares an analysis of
each syndicated loan, financial summary, covenant compliance
review, recent trading activity in the security, if known, and
other business developments related to the portfolio company. All
available information, including non-binding indicative bids which
may not be determinative of fair value, is presented to the
Valuation Committee to consider in its determination of fair value.
In some instances, there may be limited trading activity in a
security even though the market for the security is considered not
active. In such cases the Valuation Committee will consider the
number of trades, the size and timing of each trade, and other
circumstances around such trades, to the extent such information is
available, in its determination of fair value. The Valuation
Committee will evaluate the impact of such additional information,
and factor it into its consideration of the fair value that is
indicated by the analysis provided by third-party valuation firms,
if any.

Collateralized Loan Obligations Debt and Equity

During the past several years, TICC has acquired a number of
debt and equity positions in CLO investment vehicles and more
recently CLO warehouse investments. These investments are special
purpose financing vehicles. In valuing such investments, TICC
considers the indicative prices provided by a recognized industry
pricing service as a primary source, and the implied yield of such
prices, supplemented by actual trades executed in the market at or
around period-end, as well as the indicative prices provided by the
broker who arranges transactions in such investment vehicles. TICC
also considers those instances in which the record date for an
equity distribution payment falls on the last day of the period,
and the likelihood that a prospective purchaser would require a
downward adjustment to the indicative price representing
substantially all of the pending distribution. Additional factors
include any available information on other relevant transactions
including firm bids and offers in the market and information
resulting from bids-wanted- in-competition. In addition, TICC
considers the operating metrics of the specific investment vehicle,
including compliance with collateralization tests, defaulted and
restructured securities, and payment defaults, if any. TICC
Management or the Valuation Committee may request an additional
analysis by a third-party firm to assist in the valuation process
of CLO investment vehicles. All information is presented to TICCs
Board of Directors for its determination of fair value of these
investments.

Bilateral Investments (Including Equity)

Bilateral investments for which market quotations are readily
available are valued by an independent pricing agent or market
maker. If such market quotations are not readily available, under
the valuation procedures approved by TICCs Board of Directors, upon
the recommendation of the Valuation Committee, a third-party
valuation firm will prepare valuations for each of TICCs bilateral
investments that, when combined with all other investments in the
same portfolio company, (i) have a value as of the previous quarter
of greater than or equal to 2.5% of its total assets as of the
previous quarter, and (ii) have a value as of the current quarter
of greater than or equal to 2.5% of its total assets as of the
previous quarter, after taking into

account any repayment of principal during the current quarter.
In addition, in those instances where a third-party valuation is
prepared for a portfolio investment which meets the parameters
noted in (i) and (ii) above, the frequency of those third-party
valuations is based upon the grade assigned to each such security
under its credit grading system as follows: Grade 1, at least
annually; Grade 2, at least semi-annually; Grades 3, 4, and 5, at
least quarterly. Bilateral investments which do not meet the
parameters in (i) and (ii) above are not required to have a
third-party valuation and, in those instances, a valuation analysis
will be prepared by TICC Management. TICC Management also retains
the authority to seek, on TICCs behalf, additional third party
valuations with respect to both TICCs bilateral portfolio
securities and TICCs syndicated loan investments. TICCs Board of
Directors retains ultimate authority as to the third-party review
cycle as well as the appropriate valuation of each investment.

Interest Income

Interest income is recorded on an accrual basis using the
contractual rate applicable to each debt investment and includes
the accretion of discounts and amortization of premiums. Discounts
from and premiums to par value on securities purchased are
accreted/amortized into interest income over the life of the
respective security using the effective yield method. The amortized
cost of investments represents the original cost adjusted for the
accretion of discounts and amortization of premiums, if any.

Generally, when interest and/or principal payments on a loan
become past due, or if the Company otherwise does not expect the
borrower to be able to service its debt and other obligations, the
Company will place the loan on non-accrual status and will
generally cease recognizing interest income on that loan for
financial reporting purposes until all principal and interest have
been brought current through payment or due to restructuring such
that the interest income is deemed to be collectible. The Company
generally restores non-accrual loans to accrual status when past
due principal and interest is paid and, in the Companys judgment,
is likely to remain current. As of September 30, 2015, the Company
held no non-accrual assets in its portfolio; as of September 30,
2014, the Companys investment in Unitek Global Services, Inc.s
senior secured notes was on non-accrual status.

In addition, the Company earns income from the discount on debt
securities it purchases, including original issue discount (OID)
and market discount. Original issue discount and market discounts
are capitalized and amortized into income using the interest
method, as applicable.

Income from Securitization Vehicles and Equity Investments

Income from investments in the equity class securities of CLO
vehicles (typically income notes or subordinated notes) is recorded
using the effective interest method in accordance with the
provisions of ASC 325-40,

, based upon an estimation of an effective yield to maturity
utilizing assumed cash flows, including those CLO equity
investments that have not made their inaugural distribution for the
relevant period end. The Company monitors the expected residual
payments, and effective yield is determined and updated
periodically, as needed. Accordingly, investment income recognized
on CLO equity securities in the GAAP statement of operations
differs from both the tax-basis investment income and from the cash
distributions actually received by the Company during the
period.

Payment-In-Kind

TICC has investments in its portfolio which contain a
contractual payment-in-kind (PIK) provision. Certain PIK
investments offer issuers the option at each payment date of making
payments in cash or additional securities. PIK interest computed at
the contractual rate is accrued into income and added to the
principal balance on the capitalization date. Upon capitalization,
PIK is subject to the fair value estimates

associated with their related investments. PIK investments on
non-accrual status are restored to accrual status once it becomes
probable that PIK will be realized. To maintain its status as a
RIC, this income must be paid out to stockholders in the form of
dividends, even though TICC has not collected any cash. Amounts
necessary to pay these dividends may come from available cash or
the liquidation of certain investments.

Other Income

Other income includes distributions from fee letters, closing or
origination fees, and success fees associated with portfolio
investments. Distributions from fee letters are an enhancement to
the return on a CLO equity investment and are based upon a
percentage of the collateral managers fees, and are recorded as
other income when earned. Closing or origination fees, if any, are
normally paid at closing of an investment, are fully earned and
non-refundable, and generally are non-recurring. The Company may
also earn success fees associated with its investments in certain
securitization vehicles or CLO warehouse facilities, which are
contingent upon a take-out of the warehouse by a permanent CLO
structure; such fees are earned and recognized when the take-out is
completed.

DEFERRED DEBT ISSUANCE COSTS

Deferred debt issuance costs consist of fees and expenses
incurred in connection with the closing or amending of credit
facilities and debt offerings, and are capitalized at the time of
payment. These costs are amortized using the straight line method
over the terms of the respective credit facilities and debt
securities. This amortization expense is included in interest
expense in the Companys financial statements. Upon early
termination of debt, or a credit facility, the remaining balance of
unaccreted fees related to such debt is accelerated into interest
expense.

EQUITY OFFERING COSTS

Equity offering costs consist of fees and expenses incurred in
connection with the registration and public offer and sale of the
Companys common stock, including legal, accounting and printing
fees. These costs are deferred at the time of incurrence and are
subsequently charged to capital when the offering takes place or as
shares are issued. Deferred costs are periodically reviewed and
expensed if the related registration is no longer active.

SHARE REPURCHASES

From time to time, the Companys Board of Directors m

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