AB 2020 Form 10-K

For the fiscal year ended December 31, 2020, the Fund did not make distributions that included a return of capital. The tax character of distributions paid during fiscal years ended December 31, 2020 and December 31, 2019 were as follows: Fiscal year ended December 31, 2020 Fiscal year ended December 31, 2019 Distributions paid from: Ordinary Income $ 11,751,072 $ 6,505,658 Long-term Capital Gains $ 431,217 $ 37,334 Total taxable distributions paid $ 12,182,289 $ 6,542,992 Return of Capital — — Total Distributions paid $ 12,182,289 $ 6,542,992 The character of distributions for U.S. federal income tax purposes are determined in accordance with income tax regulations which may differ from GAAP. Stockholders should read any written disclosure accompanying a distribution payment carefully and should not assume that the source of any distribution is only ordinary income or capital gains. To the extent the Fund’s taxable earnings fall below the total amount of its distributions paid for that fiscal year, a portion of those distributions may be deemed a return of capital to the Fund’s stockholders for U.S. federal income tax purposes. Thus, the source of a distribution to stockholders may be the original capital invested by the stockholder rather than the Fund’s income or gains. SBCAA Share Repurchase Plan On March 23, 2018, the SBCAA was signed into law. The SBCAA, among other things, modifies the applicable provisions of the 1940 Act to reduce the required asset coverage ratio applicable to BDCs from 200% to 150% subject to certain approval, time and disclosure requirements (including either stockholder approval or approval of a majority of the directors who are not interested persons of the BDC and who have no financial interest in the proposal). On September 26, 2018, the Fund’s stockholders approved the reduction of the asset coverage ratio applicable to the Fund from 200% to 150%. Pursuant to the SBCAA, on November 27, 2018, the Fund extended to its stockholders as of such date the opportunity to sell the shares held by that stockholder as of such date, with 25% of those shares to be repurchased in each of the four calendar quarters following the calendar quarter in which the approval was obtained. The following table summarizes shares repurchased during the year ended December 31, 2019: Tender Period Payment Date Shares Dollar Amount Average Price Paid Per Share (1) 2/22/2019-3/26/2019 3/28/2019 7,331 $ 72,668 $ 9.91 5/17/2019-6/25/2019 6/28/2019 7,529 $75,042 $ 9.97 8/16/2019-9/25/2019 9/25/2019 8,478 $84,413 $ 9.95 23,338 $232,123 (1) Per share price disclosed in this column is the actual price at which each Share was repurchased. Contractual Obligations The Fund has entered into certain contracts under which it has future commitments. Payments under the Advisory Agreement with the Adviser consist of (i) a base management fee equal to a percentage of the average outstanding assets of the Fund (which equals the gross value of equity and debt instruments, including investments made utilizing leverage), excluding cash and cash equivalents, during such fiscal quarter and (ii) an incentive fee based on the Fund’s performance. The cost of both the base management fee and the incentive fee will ultimately be borne by the Fund’s stockholders. Under the Administration Agreement, the Fund will reimburse the Adviser an amount equal to the Fund’s allocable portion (subject to the review of the Board) of its overhead resulting from its obligations under the Expense Reimbursement Agreement. Stockholder approval is not required to amend the Administration Agreement or Expense Reimbursement Agreement. Any new investment advisory agreement would be subject to approval by the Fund’s stockholders. 75