Pharos Capital BDC, Inc., a corporation that intends to elect to be regulated as a business development company, was formed to generate attractive risk-adjusted returns through direct lending to middle-market healthcare companies by providing structured financing solutions for event-driven transactions such as leveraged buyouts, refinancing, recapitalizations, acquisitions, and growth capital. Pharos Capital BDC, Inc. is externally managed by Pharos Capital Group, LLC. Pharos Capital BDC, Inc. is not available to members of the public and no offer is being made or should be inferred.

Notice of Reduced Asset Coverage Ratio

On August 7, 2018, the sole stockholder of Pharos Capital BDC, Inc. (the “Company”) approved the modified asset coverage requirements set forth in Section 61(a)(2) of the Investment Company Act of 1940, as amended by the Small Business Credit Availability Act. As a result, the asset coverage ratio applicable to the Company was changed from 200% to 150%, effective August 8, 2018.