Participating Security Deal Factors Prepayment Experience

Pooled SBIC Participating Securities have a 10 year term.  The last pool matured on 2/1/2019.  By regulation, SBICs could be subject to mandatory redemptions, in part or in whole, of pooled participating securities prior to maturity.  SBICs could also make optional prepayments of principal prior to maturity.  Mandatory and optional redemptions of principal were distributed pro-rata to the investors in each pool.  A default by an SBIC could result in forced redemptions of the SBIC’s Participating Securities, at which time SBA purchased the SBIC’s Participating Securities out of the pools.  Forced redemption payments were distributed pro-rata to the investors in each pool. 

The Participating Security Deal Factors provide aggregate prepayment plus forced redemption experience by pool by percentage.