The Staff of the U.S. Securities and Exchange Commission’s Division of Investment Management has informed us that they have taken a no-action position permitting BDCs to make distributions to shareholders consistent with the position taken recently by the Internal Revenue Service in Revenue Procedure 2009-15 (Rev. Proc. 2009-15) notwithstanding that such distribution might not otherwise be permissible under § 18(a) of the 1940 Act. Rev. Proc. 2009-15, which was issued on January 7, temporarily allows closed-end investment companies, including BDCs, when paying distributions subject to a shareholder election of cash or stock, to limit the total amount of cash to be distributed to 10% of the total distribution. The prior permissible limit was 20%.

The Staff informed us that the letter will be issued in the near future.