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EX-31.2 - EXHIBIT 31.2 - Capitala Finance Corp.v377792_ex31-2.htm
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EX-31.1 - EXHIBIT 31.1 - Capitala Finance Corp.v377792_ex31-1.htm
EX-32.1 - EXHIBIT 32.1 - Capitala Finance Corp.v377792_ex32-1.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

  

 

 

xQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the Quarter Ended March 31, 2014

 

¨Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

Commission
File Number

 

Exact name of registrants as specified in their charters, addresses of principal  executive

offices, telephone numbers and states or other jurisdictions of incorporation or organization

 

I.R.S. Employer

Identification Number

814-01022  

Capitala Finance Corp.

4201 Congress St., Suite 360

Charlotte, North Carolina

Telephone: (704) 376-5502

State of Incorporation: Maryland

  90-0945675
814-01021  

CapitalSouth Partners Fund II
Limited Partnership

4201 Congress St., Suite 360

Charlotte, North Carolina

Telephone: (704) 376-5502

State of Formation: North Carolina

  55-0793325
814-01023  

CapitalSouth Partners SBIC
Fund III, L.P.

4201 Congress St., Suite 360

Charlotte, North Carolina

Telephone: (704) 376-5502

State of Formation: Delaware

  20-8426667
         

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

 

Capitala Finance Corp. Yes  x            No  ¨  
CapitalSouth Partners Fund II Limited Partnership Yes  x            No  ¨  
CapitalSouth Partners SBIC Fund III, L.P. Yes  x            No  ¨  

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

Capitala Finance Corp. Yes  ¨            No  ¨  
CapitalSouth Partners Fund II Limited Partnership Yes  ¨            No  ¨  
CapitalSouth Partners SBIC Fund III, L.P. Yes  ¨            No  ¨  

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):

 

Capitala Finance Corp. Large accelerated filer ¨ Accelerated filer ¨
         
  Non-accelerated filer x Smaller reporting company ¨

 

CapitalSouth Partners Fund II Limited Partnership Large accelerated filer ¨ Accelerated filer ¨
         
  Non-accelerated filer x Smaller reporting company ¨

 

CapitalSouth Partners SBIC Fund III, L.P. Large accelerated filer ¨ Accelerated filer ¨
         
  Non-accelerated filer x Smaller reporting company ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Capitala Finance Corp. Yes  ¨            No  x  
CapitalSouth Partners Fund II Limited Partnership Yes  ¨            No  x  
CapitalSouth Partners SBIC Fund III, L.P. Yes  ¨            No  x  

 

The number of shares of Capitala Finance Corp.’s common stock, $0.01 par value, outstanding as of May 12, 2014 was 12,974,420.

 

 

 
 

 

TABLE OF CONTENTS

 

 

 

    Page
     
PART I FINANCIAL INFORMATION 3
     
Item 1. Financial Statements 3
     
  Consolidated Statements of Assets and Liabilities as of March 31, 2014 (unaudited) and December 31, 2013 3
     
  Consolidated Statements of Operations for the three months ended March 31, 2014 and 2013 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2014 and 2013 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013 (unaudited) 6
     
  Consolidated Schedules of Investments as of March 31, 2014 (unaudited) and December 31, 2013 7
     
  Notes to Consolidated Financial Statements as of March 31, 2014 (unaudited) 13
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 32
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 45
     
Item 4. Controls and Procedures 45
     
PART II OTHER INFORMATION 45
     
Item 1. Legal Proceedings 45
     
Item 1A. Risk Factors 45
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45
     
Item 3. Defaults upon Senior Securities 46
     
Item 4. Mine Safety Disclosures 46
     
Item 5. Other Information 46
     
Item 6. Exhibits 47
   
Signatures 48

  

2
 

 

PART I FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Capitala Finance Corp.

 

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)

 

   As of 
   March 31, 2014   December 31, 2013 
   (unaudited)     
ASSETS          
           
Investments at fair value          
Non-control/non-affiliate investments (amortized cost of $110,973 and $84,138, respectively)  $125,499   $99,140 
Affiliate investments (amortized cost of $159,398 and $159,104, respectively)   188,307    189,098 
Control investments (amortized cost of $63,113 and $58,057, respectively)   77,375    76,481 
Total investments at fair value (amortized cost of $333,484 and $301,299, respectively)   391,181    364,719 
Cash and cash equivalents   57,566    101,622 
Interest and dividend receivable   3,605    2,917 
Due from related parties   541    1,645 
Deferred financing fees (net of accumulated amortization of $2,407 and $2,216, respectively)   4,680    4,871 
Prepaid expenses   553    654 
Accounts receivable   583    - 
Total assets  $458,709   $476,428 
           
LIABILITIES          
SBA debentures payable  $192,200   $202,200 
Due to related parties   190    1,153 
Incentive fee payable   1,430    1,525 
Interest payable   652    2,723 
Accounts payable and accrued expenses   447    157 
Total liabilities  $194,919   $207,758 
           
NET ASSETS          
Common stock, par value $.01, 100,000,000 common shares authorized, 12,974,420 common shares issued and outstanding  $130   $130 
Additional paid in capital   188,408    188,408 
Accumulated undistributed net investment income   16,383    16,760 
Accumulated undistributed net realized gain (loss) from investments   1,172    (48)
Net unrealized appreciation on investments   57,697    63,420 
Total net assets   263,790    268,670 
           
Total liabilities and net assets  $458,709   $476,428 
           
Net asset value per share  $20.33   $20.71 

 

See accompanying notes to consolidated financial statements.

  

3
 

 

Capitala Finance Corp.

  

Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

   For the three months ended March 31 
   2014   2013 
       (combined) 
INVESTMENT INCOME          
Interest and fee income:          
Non-control/Non-affiliate investments  $2,940   $2,091 
Affiliate investments   3,740    2,445 
Control investments   1,333    767 
Total interest and fee income   8,013    5,303 
Payment-in-kind interest and dividend income:          
Non-control/Non-affiliate investments   173    44 
Affiliate investments   293    52 
Control investments   125    198 
Total payment-in-kind interest and dividend income   591    294 
Dividend income:          
Non-control/Non-affiliate investments   163    - 
Affiliate investments   29    29 
Control investments   3,570    46 
Total dividend income   3,762    75 
Other income   -    571 
Interest income from cash and cash equivalents   8    28 
Total investment income   12,374    6,271 
           
EXPENSES          
Interest expense and amortization of deferred financing fees   2,199    2,065 
Management fees   2,018    784 
Incentive fees   1,430    - 
General and administrative expenses   1,130    133 
Expenses before management fee waiver   6,777    2,982 
Management fee waiver (See Note 5)   (124)   - 
Total expenses net of management fee waiver   6,653    2,982 
           
NET INVESTMENT INCOME   5,721    3,289 
           
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:          
Net realized gain from investments:          
Non-control/Non-affiliate investments   1,158    - 
Affiliate investments   -    - 
Control investments   62    - 
Total realized gain from investments   1,220    - 
Net unrealized depreciation on investments   (5,723)   (721)
Net loss on investments   (4,503)   (721)
           
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS  $1,218   $2,568 
           
NET INCREASE IN NET ASSETS PER SHARE RESULTING FROM OPERATIONS – BASIC AND DILUTED  $0.09     N/A 
           
DIVIDENDS DECLARED PER SHARE  $0.47    - 
           
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED   12,974,420     N/A 

 

See accompanying notes to consolidated financial statements.

 

N/A – Not Applicable

 

4
 

 

Capitala Finance Corp.

 

Consolidated Statements of Changes in Net Assets

(in thousands except share and per share data)

(unaudited)

 

           Common Stock   Additional   Accumulated   Accumulated   Net Unrealized     
   General   Limited   Number of   Par   Paid in   Undistributed Net   Undistributed Net   Appreciation on     
   Partner   Partners   Shares   Value   Capital   Investment Income   Realized Gains   Investments   Total 
                                     
BALANCE, December 31, 2012  $282   $77,358   -   $-   $-   $8,560   $-   $56,233   $142,433 
Net investment income   -    -    -    -    -    3,289    -    -    3,289 
Net change in unrealized appreciation on portfolio investments   -    -    -    -    -    -    -    (721)   (721)
BALANCE, March 31, 2013  $282   $77,358   -   $-   $-   $11,849   $-   $55,512   $145,001 
                                              
BALANCE, December 31, 2013  $-   $-   12,974,420   $130   $188,408   $16,760   $(48)  $63,420   $268,670 
Net investment income   -    -    -    -    -    5,721    -    -    5,721 
Net realized gain on portfolio investments   -    -    -    -    -    -    1,220         1,220 
Net change in unrealized appreciation on portfolio investments   -    -    -    -    -    -         (5,723)   (5,723)
Dividends declared and paid   -    -    -    -    -    (6,098)   -    -    (6,098)
BALANCE, March 31, 2014  $-   $-   12,974,420   $130   $188,408   $16,383   $1,172   $57,697   $263,790 

 

See accompanying notes to consolidated financial statements.

  

5
 

 

Capitala Finance Corp.

 

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

   For the three months ended March 31 
   2014   2013 
       (combined) 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net increase in net assets resulting from operations  $1,218   $2,568 
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:          
Purchase of portfolio investments   (41,100)   (21,143)
Repayments of portfolio investments   10,728    13,000 
Net realized gain on portfolio investments   (1,220)   - 
Decrease in net unrealized appreciation on portfolio investments   5,723    721 
Payment-in-kind interest and dividends accrued, net of payments received   (591)   (218)
Accretion of original issue discount on portfolio investments   (2)   (17)
Amortization of deferred financing fees   191    167 
Changes in assets and liabilities:          
Interest and dividend receivable   (688)   (446)
Due from related parties   1,104    (256)
Prepaid expenses   101    - 
Accounts receivable   (583)   - 
Due to related parties   (963)   (339)
Incentive fee payable   (95)   - 
Interest payable   (2,071)   (1,838)
Accounts payable and accrued expenses   290    113 
NET CASH USED IN OPERATING ACTIVITIES   (27,958)   (7,688)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from issuance of SBA-guaranteed debentures   -    25,000 
Paydowns on SBA-guaranteed debentures   (10,000)     
Dividends declared and paid   (6,098)   - 
Deferred financing fees paid   -    (606)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES   (16,098)   24,394 
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (44,056)   16,706 
CASH AND CASH EQUIVALENTS, beginning of period   101,622    30,467 
CASH AND CASH EQUIVALENTS, end of period  $57,566   $47,173 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION          
Cash paid for interest  $4,075   $3,735 

 

See accompanying notes to consolidated financial statements.

 

6
 

  

Capitala Finance Corp.

 

Consolidated Schedule of Investments

(in thousands, except for units)

March 31, 2014

(unaudited)

 

Company (4, 5)  Industry  Investment Interest Rate / Maturity  Principal
Amount
   Cost   Fair Value   % of
Net Assets
 
                       
Non-control/Non-affiliated investments - 47.8%                          
                           
AAE Acquisition, LLC  Industrial Equipment Rental  Senior Secured Term Debt (12% Cash, Due 5/6/15)  $19,000   $18,995   $19,000    7.2%
                           
AAE Acquisition, LLC  Industrial Equipment Rental  Membership Units (14% fully diluted)   -    17    2,333    0.9%
                           
               19,012    21,333    8.1%
                           
American Exteriors, LLC (1)  Replacement Window Manufacturer  Senior Secured Debt (14.0% Cash, Due 6/30/14)   4,509    3,309    4,509    1.7%
                           
American Exteriors, LLC (1)  Replacement Window Manufacturer  Jr. Convertible Note (10.0% Cash, Due 6/30/15)   500    415    625    0.2%
                           
American Exteriors, LLC  (8)  Replacement Window Manufacturer  Common Stock Warrants (15% fully diluted)   -    -    394    0.2%
                           
               3,724    5,528    2.1%
                           
Boot Barn Holding Corporation  Western Wear Retail    Common Stock (2,400 shares)   -    2,400    6,288    2.4%
                           
               2,400    6,288    2.4%
                           
Caregiver Services, Inc.  In-Home Healthcare Services  Common Stock (293,186 shares)   -    258    198    0.1%
                           
Caregiver Services, Inc. (8)  In-Home Healthcare Services  Common Stock Warrants (655,908 units)   -    264    444    0.1%
                           
               522    642    0.2%
                           
Crowley Holdings, Inc. (6)  Transportation  Series A Income Preferred Shares (6,000 shares, 10% cash, 2% PIK dividend)   -    6,051    6,051    2.3%
                           
               6,051    6,051    2.3%
                           
Immersive Media Tactical Solutions, LLC  Specialty Defense Contractor  Senior Secured Term Debt (13% Cash, Due 10/6/16)   2,000    2,000    2,000    0.8%
                           
Immersive Media Tactical Solutions, LLC  Specialty Defense Contractor  Common Unit Warrants (12% fully diluted)   -    -    780    0.3%
                           
               2,000    2,780    1.1%
                           
Kelle's Transport Service, LLC (6)   Transportation  Preferred Units (1,000 units, 10% PIK Dividend)   -    2,596    2,600    1.0%
                           
Kelle's Transport Service, LLC  Transportation  Senior Secured Debt (14% Cash, Due 3/31/19)   16,000    15,982    16,000    6.1%
                           
Kelle's Transport Service, LLC  Transportation  Common Stock Warrants (15% fully diluted)   -    22    -    0.0%
                           
               18,600    18,600    7.1%
                           
Medical Depot, Inc.  Medical Device Distributor  Subordinated Debt (14% Cash, Due 9/27/20)   4,667    4,667    4,667    1.8%
                           
Medical Depot, Inc.  Medical Device Distributor  Series C Convertible Preferred Stock (740 shares)   -    1,333    2,374    0.9%
                           
               6,000    7,041    2.7%
                           
Naples Lumber & Supply Co (1)  Building Supplies  Subordinated Debt (7% Cash, Due 6/30/15)   2,109    1,309    2,109    0.8%
                           
Naples Lumber & Supply Co  Building Supplies  Common Stock Warrants (10% fully diluted)   -    -    500    0.2%
                           
               1,309    2,609    1.0%
                           
Pickaway Plains Ambulance Services, Inc. (1) (2)  Medical Transportation Services  Senior Secured Term Debt (13% Cash, Due 12/31/15)   1,548    -    -    0.0%
                           
Pickaway Plains Ambulance Services, Inc.  Medical Transportation Services  Common Stock Warrants (5% fully diluted)   -    -    -    0.0%
                           
               -    -    0.0%
                           
Precision Manufacturing, LLC  Industrial Boiler Manufacturer  Senior Secured Term Debt (14% PIK, Due 2/13/15)   200    200    200    0.1%
                           
Precision Manufacturing, LLC (3)  Industrial Boiler Manufacturer  Subordinated Debt (6.5% Cash, 6.5% PIK, Due 2/10/17)   2,500    2,500    1,536    0.6%
                           
Precision Manufacturing, LLC  Industrial Boiler Manufacturer  Membership Unit Warrants (70,000 units)   -    -    -    0.0%
                           
               2,700    1,736    0.7%
                           
Sierra Hamilton, LLC  Oil & Gas Engineering and Consulting Services  Senior Secured Debt (12.25% Cash, Due 12/15/18)   15,000    15,000    15,000    5.7%
                           
               15,000    15,000    5.7%

 

7
 

 

Southern Pump & Tank Company, LLC (1)  Petroleum Equipment Supplier  Senior Secured Term Debt (13% Cash, 6% PIK, Due 6/15/14)   4,136    3,323    3,624    1.4%
                           
Southern Pump & Tank Company, LLC  Petroleum Equipment Supplier  Common Stock Warrants (10% fully diluted)   -    -    -    0.0%
                           
               3,323    3,624    1.4%
                           
Stoddard Hill Media Holdings, LLC  IT Hosting Services  Class D Preferred Units (132,159 shares)   -    300    434    0.2%
                           
               300    434    0.2%
                           
Tenere, Inc.  Industrial Manufacturing    Senior Secured Term Debt (11% Cash, 2% PIK, Due 12/17/17)   3,451    3,451    3,451    1.3%
                           
               3,451    3,451    1.3%
                           
Velum Global Credit Management, LLC  Financial Services    Senior Secured Debt (15% Cash, Due 12/31/15)   8,300    8,300    8,300    3.1%
                           
               8,300    8,300    3.1%
                           
Worklife America, Inc.  Professional Employer Organization  Senior Secured Debt (12% Cash, Due 12/28/16)   18,281    18,281    18,281    7.0%
                           
Worklife America, Inc.  Professional Employer Organization  Common Unit Warrants (4.4% ownership)   -    -    3,253    1.2%
                           
Worklife America, Inc.  Professional Employer Organization  Preferred Unit Warrants (4.4% ownership)   -    -    548    0.2%
                           
               18,281    22,082    8.4%
                           
Sub Total Non-control/Non-affiliated investments              $110,973   $125,499    47.8%
                           
Affiliate investments - 71.3%                          
                           
Chef'N Corporation  Culinary Products  Subordinated Debt (15% , 3% PIK at company's option, Due 5/16/18)  $6,300   $6,300    6,300    2.4%
                           
Chef'N Corporation  Culinary Products  Series A Preferred Stock (1,000,000 shares)   -    1,000    4,236    1.6%
                           
               7,300    10,536    4.0%
                           
City Gear, LLC  Footwear Retail  Subordinated Debt (13% Cash, Due 9/28/16)   8,231    8,231    8,231    3.1%
                           
City Gear, LLC (6)  Footwear Retail  Preferred Membership Units (9% cash dividend)   -    1,269    1,269    0.5%
                           
City Gear, LLC  Footwear Retail  Membership Unit Warrants (14.15% fully diluted)   -    -    5,827    2.2%
                           
               9,500    15,327    5.8%
                           
Corporate Visions, Inc.  Sales & Marketing Services  Subordinated Debt (14% Cash, 2% PIK, Due 3/22/18)   11,230    11,230    11,230    4.3%
                           
Corporate Visions, Inc.  Sales & Marketing Services  Common Stock (2,216,463 shares)   -    2,576    9,797    3.7%
                           
Corporate Visions, Inc.  Sales & Marketing Services  Common Stock Warrant (403,257 shares)   -    -    1,782    0.6%
                           
               13,806    22,809    8.6%
                           
Enersafe, LLC  Oil & Gas Services  Subordinated Debt (12% Cash, 2% PIK, Due 11/22/18)   12,149    12,149    12,149    4.6%
                           
Enersafe, LLC  Oil & Gas Services  Subordinated Debt (12% Cash, 2% PIK, Due 2/1/19)   9,681    9,681    9,681    3.7%
                           
Enersafe, LLC  Oil & Gas Services  Class A Common Stock (3,600 shares)   -    3,600    3,600    1.4%
                           
               25,430    25,430    9.7%
                           
GA Communications, Inc. (6)  Advertising & Marketing Services  Series A-1 Preferred Stock (1,998 shares, 8% PIK dividend)   -    2,045    2,415    0.9%
                           
GA Communications, Inc.  Advertising & Marketing Services  Series B-1 Common Stock (200,000 shares)   -    2    2,842    1.1%
                           
               2,047    5,257    2.0%
                           
Impresa Aerospace Holdings, LLC (3)  Aerospace Parts Manufacturer  Subordinated Debt (4.1% Cash, Due 4/28/16)   13,641    12,258    9,934    3.8%
                           
Impresa Aerospace Holdings, LLC  Aerospace Parts Manufacturer  Class A Membership Units (1,006,621 units)   -    900    -    0.0%
                           
Impresa Aerospace Holdings, LLC  Aerospace Parts Manufacturer  Class C Membership Units (362,416 units)   -    362    -    0.0%
                           
Impresa Aerospace Holdings, LLC  Aerospace Parts Manufacturer  Class F Membership Units (604,504 units)   -    605    -    0.0%
                           
               14,125    9,934    3.8%
                           
J&J Produce Holdings, Inc.  Produce Distribution  Subordinated Debt (13% Cash, Due 7/16/18)   5,182    5,182    5,182    1.9%
                           
J&J Produce Holdings, Inc.  Produce Distribution  Common Stock (8,182 shares)   -    818    463    0.2%
                           
J&J Produce Holdings, Inc.  Produce Distribution  Common Stock Warrants (4,506 shares)   -    -    255    0.1%
                           
               6,000    5,900    2.2%
                           
LJS Partners, LLC  QSR Franchisor  Common Stock (1,500,000 shares)   -    1,500    13,270    5.0%
                           
               1,500    13,270    5.0%

 

8
 

 

MJC Holdings, LLC  Specialty Clothing  Subordinated Debt (14% Cash, 2% PIK at Company's option, Due 1/16/18)   7,500    7,500    7,500    2.8%
                           
MJC Holdings, LLC  Specialty Clothing  Series A Preferred Units (2,000,000 units)   -    2,000    4,961    1.9%
                           
               9,500    12,461    4.7%
                           
MMI Holdings, LLC  Medical Device Distributor  Senior Secured Debt (12% Cash, Due 10/17/14)   2,600    2,600    2,600    1.0%
                           
MMI Holdings, LLC  Medical Device Distributor  Subordinated Debt (6% Cash, Due 8/15/15)   400    388    400    0.2%
                           
MMI Holdings, LLC (6)  Medical Device Distributor  Preferred Units (1,000 units, 6% PIK dividend)   -    1,070    1,217    0.4%
                           
MMI Holdings, LLC  Medical Device Distributor  Common Units (45 units)   -    -    114    0.0%
                           
               4,058    4,331    1.6%
                           
MTI Holdings, LLC  Retail Display & Security Services  Subordinated Debt (12% Cash, Due 11/1/18)   8,000    8,000    8,000    3.0%
                           
MTI Holdings, LLC  Retail Display & Security Services  Capital Units (2,000,000 units)   -    2,000    3,965    1.5%
                           
               10,000    11,965    4.5%
                           
Source Capital ABUTEC, LLC  Environmental Services Products  Subordinated Debt (12% Cash, 3% PIK, Due 12/28/17)   5,164    5,164    5,164    2.0%
                           
Source Capital ABUTEC, LLC  Environmental Services Products  Preferred Membership Units (15.5% fully diluted)   -    1,239    89    0.0%
                           
               6,403    5,253    2.0%
                           
Source Capital Penray, LLC  Automotive Chemicals & Lubricants  Subordinated Debt (13% Cash, Due 2/17/17)   2,500    2,500    2,500    0.9%
                           
Source Capital Penray, LLC  Automotive Chemicals & Lubricants  Common Stock Warrants (6.65% fully diluted)   -    -    704    0.3%
                           
Source Capital Penray, LLC  Automotive Chemicals & Lubricants  Membership Units  (11.3% fully diluted)   -    750    980    0.4%
                           
               3,250    4,184    1.6%
                           
Source Capital SSCR, LLC  Personal Product Manufacturer  Senior Secured Term Debt (14% Cash, Due 7/6/17)   15,000    15,000    11,776    4.5%
                           
Source Capital SSCR, LLC  Personal Product Manufacturer  Senior Secured Term Debt (14% Cash, 5% PIK, Due 4/30/14)   2,104    2,104    1,931    0.7%
                           
Source Capital SSCR, LLC  Personal Product Manufacturer  Preferred Membership Units (14,718 units)   -    1,720    -    0.0%
                           
Source Capital SSCR, LLC  Personal Product Manufacturer  Membership Unit Warrants (0.987% fully diluted)   -    -    -    0.0%
                           
               18,824    13,707    5.2%
                           
Source Recycling, LLC (2)  Metal Recycler  Subordinated Debt (13% Cash, Due 9/2/16)   5,000    5,000    3,950    1.5%
                           
Source Recycling, LLC  Metal Recycler  Membership Units (68,658 units)   -    1,590    -    0.0%
                           
Source Recycling, LLC  Metal Recycler  Membership Unit Warrants (1% fully diluted)   -    -    -    0.0%
                           
               6,590    3,950    1.5%
                           
Sparus Holdings, Inc. (1)  Energy Services  Subordinated Debt (12% Cash, Due 3/21/16)   7,000    7,000    7,000    2.7%
                           
Sparus Holdings, Inc.  Energy Services  Series B Preferred Stock (5,703 shares)   -    1,173    1,064    0.4%
                           
Sparus Holdings, Inc.  Energy Services  Common Stock Warrants (3,491 shares)   -    -    -    0.0%
                           
               8,173    8,064    3.1%
                           
STX Healthcare Management Services, Inc. (1)  Dental Practice Management  Subordinated Debt (14% Cash, Due 7/31/15)   7,425    7,425    7,425    2.8%
                           
STX Healthcare Management Services, Inc.  Dental Practice Management  Common Stock (1,200,000 shares)   -    1,200    765    0.3%
                           
STX Healthcare Management Services, Inc.  Dental Practice Management  Common Stock Warrants (1,154,254 shares)   -    218    812    0.3%
                           
               8,843    9,002    3.4%
                           
Take 5 Oil Change, Inc.  Quick Lube Services  Common Stock (10,692 shares)   -    1,069    1,866    0.7%
                           
               1,069    1,866    0.7%
                           
V12 Holdings, Inc. (1)  Data Processing & Digital Marketing  Bridge Note (0% Cash, Due 12/31/14)   663    361    663    0.2%
                           
V12 Holdings, Inc. (1)  Data Processing & Digital Marketing  Tier 2 Note (0% Cash, Due 12/31/14)   81    44    81    0.0%
                           
V12 Holdings, Inc. (1)  Data Processing & Digital Marketing  Senior Subordinated Note (0% Cash, Due 12/31/14)   3,563    2,369    3,563    1.4%
                           
V12 Holdings, Inc. (1)  Data Processing & Digital Marketing  Tier 3 Note (0% Cash, Due 12/31/14)   299    206    299    0.1%
                           
V12 Holdings, Inc. (1)  Data Processing & Digital Marketing  Jr. Subordinated Note (0% Cash, Due 12/31/14)   2,750    -    455    0.2%
                           
V12 Holdings, Inc. (1)  Data Processing & Digital Marketing  Tier 4 Note (0% Cash, Due 12/31/14)   243    -    -    0.0%
                           
V12 Holdings, Inc.  Data Processing & Digital Marketing  Series A-1 Preferred Stock (255,102 shares)   -    -    -    0.0%

 

9
 

 

V12 Holdings, Inc.  Data Processing & Digital Marketing  Series A-3 Preferred Stock (88,194 shares)   -    -    -    0.0%
                           
V12 Holdings, Inc.  Data Processing & Digital Marketing  Series A-5 Preferred Stock (20,530 shares)   -    -    -    0.0%
                           
V12 Holdings, Inc.  Data Processing & Digital Marketing  Common Stock Warrants (2,063,629 warrants)   -    -    -    0.0%
                           
               2,980    5,061    1.9%
                           
Sub Total Affiliate investments             $159,398   $188,307    71.3%
                           
Control investments - 29.4%                          
                           
CableOrganizer Acquisition, LLC  Computer Supply Retail  Senior Secured Term Debt (12% Cash, 4% PIK, Due 5/24/18)  $6,651   $6,651   $6,651    2.5%
                           
CableOrganizer Acquisition, LLC  Computer Supply Retail  Common Stock (1,125,000 shares)   -    1,125    -    0.0%
                           
               7,776    6,651    2.5%
                           
KBP Investments, LLC (6) (7)  QSR Franchisee  Class A Preferred Stock (8,270 shares, 10% Dividend)   -    8,269    8,269    3.1%
                           
KBP Investments, LLC  QSR Franchisee  Class A Common Stock (380,413 shares)   -    -    15,866    6.0%
                           
               8,269    24,135    9.1%
                           
Market E's, LLC (2)  Online Travel Sales & Marketing  Senior Secured Debt (10% Cash, Due 12/31/14)   650    650    650    0.2%
                           
Market E's, LLC (1) (2)  Online Travel Sales & Marketing  Senior Secured Debt (14% Cash, 3% PIK, Due 12/31/14)   2,897    2,833    988    0.4%
                           
Market E's, LLC  Online Travel Sales & Marketing  Class A Preferred Stock (600 shares)   -    240    -    0.0%
                           
Market E's, LLC  Online Travel Sales & Marketing  Class B Preferred Stock (2,411 shares)   -    965    -    0.0%
                           
Market E's, LLC  Online Travel Sales & Marketing  Class A Common Stock (600 shares)   -    -    -    0.0%
                           
               4,688    1,638    0.6%
                           
Micro Precision, LLC  Conglomerate  Subordinated Debt (10% Cash, Due 9/16/16)   1,862    1,862    1,862    0.7%
                           
Micro Precision, LLC  Conglomerate  Subordinated Debt (14% Cash, 4% PIK, Due 9/16/16)   3,590    3,590    3,590    1.4%
                           
Micro Precision, LLC  Conglomerate  Common Stock (47 units)   -    1,629    1,629    0.6%
                           
               7,081    7,081    2.7%
                           
Navis Holdings, Inc.  Textile Equipment Manufacturer  Senior Secured Term Debt (17% Cash, 3% PIK at company's option, Due 2/1/16)   6,735    6,735    6,735    2.6%
                           
Navis Holdings, Inc. (6)  Textile Equipment Manufacturer  Class A Preferred Stock (1,000 shares, 10% dividend)   -    1,000    1,225    0.5%
                           
Navis Holdings, Inc.  Textile Equipment Manufacturer  Common Stock (300,000 shares)   -    1    1,649    0.6%
                           
               7,736    9,609    3.7%
                           
On-Site Fuel Services, Inc.  Fuel Transportation Services  Subordinated Debt (14% Cash, 4% PIK, Due 12/19/16)   4,897    4,897    4,897    1.9%
                           
On-Site Fuel Services, Inc.  Fuel Transportation Services  Series A Preferred Stock (32,782 shares)   -    3,278    1,911    0.7%
                           
On-Site Fuel Services, Inc. (6)  Fuel Transportation Services  Series B Preferred Stock (23,648 shares. 14% dividend, 4% PIK dividend)   -    2,365    2,835    1.1%
                           
On-Site Fuel Services, Inc.  Fuel Transportation Services  Common Stock (33,107 shares)   -    33    -    0.0%
                           
               10,573    9,643    3.7%
                           
Print Direction, Inc.  Printing Services  Senior Secured Term Debt (15% Cash, Due 2/24/19)   14,000    14,000    14,000    5.3%
                           
Print Direction, Inc.  Printing Services  Common Stock (19,363 shares)   -    2,990    4,423    1.7%
                           
Print Direction, Inc.  Printing Services  Common Stock Warrants (3% fully diluted)   -    -    195    0.1%
                           
               16,990    18,618    7.1%
                           
Sub Total Control investments             $63,113   $77,375    29.4%
                           
TOTAL INVESTMENTS - 148.3%             $333,484   $391,181    148.5%

 

(1) The maturity date of the original investment has been extended.

(2) Due to deterioration in credit quality, this investment is on non- accrual status.

(3) The debt investment is accruing interest based on the terms of the forebearance agreement.

(4) All debt investments are income producing. Equity and warrant investments are non-income producing, unless otherwise noted.

(5) Percentages are based on net assets of $263,790 as of March 31, 2014.

(6) The equity investment is income producing, based on rate disclosed.

(7) During the fourth quarter of 2013, the Company accepted a consent fee that waives its right to dividends through September 30, 2014.

(8) The equity investment has an exercisable put option.

 

See accompanying notes to consolidated financial statements.

 

10
 

 

 Capitala Finance Corp.

 

Consolidated Schedule of Investments

(in thousands, except for units)

December 31, 2013

 

Company (4, 5)  Industry  Investment Interest Rate /
Maturity
  Principal
Amount
   Cost   Fair
Value
   % of
Net
Assets
 
Non-control/Non-affiliated investments - 36.9%                          
AAE Acquisition, LLC  Industrial Equipment Rental  Senior Secured Term Debt (12% Cash, Due 5/6/15)  $19,000   $18,992   $19,000    7.1%
AAE Acquisition, LLC  Industrial Equipment Rental  Membership Units (21% fully diluted)   -    25    3,500    1.3%
               19,017    22,500    8.4%
American Exteriors, LLC(1)  Replacement Window Manufacturer  Senior Secured Debt (14.0% Cash, Due 6/30/14)   4,565    3,365    4,565    1.7%
American Exteriors, LLC (1)  Replacement Window Manufacturer  Jr. Convertible Note (10.0% Cash, Due 6/30/15)   500    416    612    0.2%
American Exteriors, LLC (8)  Replacement Window Manufacturer  Common Stock Warrants (15% fully diluted)   -    -    1,106    0.4%
               3,781    6,283    2.3%
Boot Barn Holding Corporation  Western Wear Retail  Common Stock (2,400 shares)   -    2,400    4,774    1.8%
               2,400    4,774    1.8%
Caregiver Services, Inc.  In-Home Healthcare Services  Common Stock (293,186 shares)   -    258    231    0.1%
Caregiver Services, Inc. (8)  In-Home Healthcare Services  Common Stock Warrants (655,908 units)   -    264    517    0.2%
               522    748    0.3%
Crowley Holdings, Inc. (6)  Transportation  Series A Income Preferred Shares (6,000 shares, 10% cash, 2% PIK dividend)   -    6,000    6,000    2.2%
               6,000    6,000    2.2%
Immersive Media Tactical Solutions, LLC  Specialty Defense Contractor  Senior Secured Term Debt (13% Cash, Due 10/6/16)   2,000    2,000    2,000    0.7%
Immersive Media Tactical Solutions, LLC  Specialty Defense Contractor  Common Unit Warrants (12% fully diluted)   -    -    800    0.3%
               2,000    2,800    1.0%
Medical Depot, Inc.  Medical Device Distributor  Subordinated Debt (14% Cash, Due 10/11/16)   4,667    4,667    4,667    1.7%
Medical Depot, Inc.  Medical Device Distributor  Series C Convertible Preferred Stock (740 shares)   -    1,333    2,129    0.8%
   `                       
               6,000    6,796    2.5%
Naples Lumber & Supply Co (1)  Building Supplies  Subordinated Debt (6% cash, Due 2/15/14)   2,109    1,309    2,109    0.8%
Naples Lumber & Supply Co  Building Supplies  Common Stock Warrants (10% fully diluted)   -    -    400    0.1%
               1,309    2,509    0.9%
Pickaway Plains Ambulance Services, Inc. (1, 2)  Medical Transportation Services  Senior Secured Term Debt (13% Cash, Due 12/31/15)   1,548    -    -    0.0%
Pickaway Plains Ambulance Services, Inc.  Medical Transportation Services  Common Stock Warrants (5% fully diluted)   -    -    -    0.0%
               -    -    0.0%
Precision Manufacturing, LLC (2)  Industrial Boiler Manufacturer  Subordinated Debt (13% Cash, Due 2/10/17)   2,500    2,500    1,536    0.6%
Precision Manufacturing, LLC  Industrial Boiler Manufacturer  Membership Unit Warrants (70,000 units)   -    -    -    0.0%
               2,500    1,536    0.6%
Sierra Hamilton, LLC  Oil & Gas Engineering and Consulting Services  Senior Secured Debt (12.25% Cash, 12/15/18)   15,000    15,000    15,000    5.6%
               15,000    15,000    5.6%
Southern Pump & Tank Company, LLC (1)  Petroleum Equipment Supplier  Senior Secured Term Debt (13% Cash, 6% PIK, Due 6/15/14)   3,633    3,213    3,624    1.3%
Southern Pump & Tank Company, LLC  Petroleum Equipment Supplier  Common Stock Warrants (10% fully diluted)   -    -    -    0.0%
               3,213    3,624    1.3%
Stoddard Hill Media Holdings, LLC  IT Hosting Services  Class D Preferred Units (132,159 shares)   -    300    453    0.2%
               300    453    0.2%
Tenere, Inc.  Industrial Manufacturing  Senior Secured Term Debt (11% Cash, 2% PIK, Due 12/17/17)   3,440    3,440    3,440    1.3%
               3,440    3,440    1.3%
Worklife America, Inc.  Professional Employer Organization  Senior Secured Debt (12% Cash, Due 12/28/16)   18,656    18,656    18,656    7.0%
Worklife America, Inc.  Professional Employer Organization  Common Unit Warrants (3.84% ownership)   -    -    3,441    1.3%
Worklife America, Inc.  Professional Employer Organization  Preferred Unit Warrants (3.84% ownership)   -    -    580    0.2%
               18,656    22,677    8.5%
Sub Total Non-control/Non-affiliated investments             $84,138   $99,140    36.9%
Affiliate investments - 70.4%                          
Chef'N Corporation  Culinary Products  Subordinated Debt (15%, 3% PIK at company's option, Due 5/16/18)  $6,300   $6,300   $6,300    2.3%
Chef'N Corporation  Culinary Products  Series A Preferred Stock (1,000,000 shares)   -    1,000    4,002    1.5%
               7,300    10,302    3.8%
City Gear, LLC  Footwear Retail  Subordinated Debt (13% Cash, Due 9/28/16)   8,231    8,231    8,231    3.1%
City Gear, LLC (6)  Footwear Retail  Preferred Membership Units (2.78% fully diluted, 9% dividend)   -    1,269    1,269    0.5%
City Gear, LLC  Footwear Retail  Membership Unit Warrants (11.37% fully diluted)   -    -    5,307    2.0%
               9,500    14,807    5.6%
Corporate Visions, Inc.  Sales & Marketing Services  Subordinated Debt (14% Cash, 2% PIK, Due 3/22/18)   11,174    11,174    11,174    4.2%
Corporate Visions, Inc.  Sales & Marketing Services  Common Stock (2,216,463 shares)   -    2,576    9,797    3.6%
Corporate Visions, Inc.  Sales & Marketing Services  Common Stock Warrant (403,257 shares)   -    -    1,782    0.7%
               13,750    22,753    8.5%
GA Communications, Inc.  Advertising & Marketing Services  Series A-1 Preferred Stock (1,998 shares)   -    1,998    2,370    0.9%
GA Communications, Inc.  Advertising & Marketing Services  Series B-1 Common Stock (200,000 shares)   -    2    2,541    0.9%
               2,000    4,911    1.8%
Impresa Aerospace Holdings, LLC (3)  Aerospace Parts Manufacturer  Subordinated Debt (4.1% Cash, Due 4/28/16)   13,274    12,258    10,064    3.7%
Impresa Aerospace Holdings, LLC  Aerospace Parts Manufacturer  Class A Membership Units (1,006,621 units)   -    900    -    0.0%
Impresa Aerospace Holdings, LLC  Aerospace Parts Manufacturer  Class C Membership Units (362,416 units)   -    362    -    0.0%
Impresa Aerospace Holdings, LLC  Aerospace Parts Manufacturer  Class F Membership Units (604,504 units)   -    604    -    0.0%
               14,124    10,064    3.7%

 

11
 

 

Company (4, 5)  Industry  Investment Interest Rate /
Maturity
  Principal
Amount
   Cost   Fair
Value
   % of
Net
Assets
 
J&J Produce Holdings, Inc.  Produce Distribution  Subordinated Debt (13% Cash, Due 7/16/18)   5,182    5,182    5,182    2.0%
J&J Produce Holdings, Inc.  Produce Distribution  Common Stock (8,182 Shares)   -    818    934    0.3%
J&J Produce Holdings, Inc.  Produce Distribution  Common Stock Warrants (4,506 shares)   -    -    515    0.2%
               6,000    6,631    2.5%
LJS Partners, LLC  QSR Franchisor  Common Stock (1,500,000 shares)   -    1,500    14,622    5.4%
               1,500    14,622    5.4%
MJC Holdings, LLC  Specialty Clothing  Subordinated Debt (14%, 2% PIK at company's option, Due 1/16/18)   7,500    7,500    7,500    2.8%
MJC Holdings, LLC  Specialty Clothing  Series A Preferred Units (2,000,000 units)   -    2,000    5,224    1.9%
               9,500    12,724    4.7%
MMI Holdings, LLC  Medical Device Distributor  Senior Secured Debt (12% Cash, Due 10/17/14)   2,600    2,600    2,600    1.1%
MMI Holdings, LLC  Medical Device Distributor  Subordinated Debt (6% Cash, Due 8/15/15)   400    388    400    0.1%
MMI Holdings, LLC  Medical Device Distributor  Preferred Units (1,000 units)   -    1,052    1,200    0.4%
MMI Holdings, LLC  Medical Device Distributor  Common Units (45 units)   -    -    125    0.0%
               4,040    4,325    1.6%
MTI Holdings, LLC  Retail Display & Security Services  Subordinated Debt (12% Cash, Due 11/1/18)   8,000    8,000    8,000    3.0%
MTI Holdings, LLC  Retail Display & Security Services  Capital Units (2,000,000 units)   -    2,000    2,823    1.1%
               10,000    10,823    4.1%
Source Capital ABUTEC, LLC  Environmental Services Products  Senior Secured Debt (12% Cash, 3% PIK, Due 12/28/17)   5,125    5,125    5,125    1.9%
Source Capital ABUTEC, LLC  Environmental Services Products  Preferred Membership Units (15.5% fully diluted)   -    1,240    60    0.0%
               6,365    5,185    1.9%
Source Capital Penray, LLC  Automotive Chemicals & Lubricants  Subordinated Debt (13% Cash, Due 2/17/17)   2,500    2,500    2,500    0.9%
Source Capital Penray, LLC  Automotive Chemicals & Lubricants  Membership Units  (11.3% fully diluted)   -    750    810    0.3%
Source Capital Penray, LLC  Automotive Chemicals & Lubricants  Common Stock Warrants (6.65% fully diluted)   -    -    576    0.2%
               3,250    3,886    1.4%
Source Capital SSCR, LLC  Personal Product Manufacturer  Senior Secured Term Debt (14% Cash, Due 7/6/17)   15,000    15,000    12,115    4.5%
Source Capital SSCR, LLC  Personal Product Manufacturer  Senior Secured Term Debt (14% Cash, 5% PIK, Due 3/28/14)   2,079    2,079    1,958    0.7%
Source Capital SSCR, LLC  Personal Product Manufacturer  Preferred Membership Units (14,718 units)   -    1,720    -    0.0%
Source Capital SSCR, LLC  Personal Product Manufacturer  Membership Unit Warrants (0.987% fully diluted)   -    -    -    0.0%
               18,799    14,073    5.2%
Source Recycling, LLC (2)  Metal Recycler  Subordinated Debt (13% Cash, Due 9/2/16)   5,000    5,000    3,950    1.5%
Source Recycling, LLC  Metal Recycler  Membership Units (68,658 units)   -    1,590    -    0.0%
Source Recycling, LLC  Metal Recycler  Membership Unit Warrants (1% fully diluted)   -    -    -    0.0%
               6,590    3,950    1.5%
Sparus Holdings, Inc.(1)  Energy Services  Subordinated Debt (12% Cash, Due 3/21/16)   7,000    7,000    7,000    2.6%
Sparus Holdings, Inc.  Energy Services  Series B Preferred Stock (5,703 shares)   -    1,173    1,479    0.6%
Sparus Holdings, Inc.  Energy Services  Common Stock Warrants (3,491 shares)   -    -    304    0.1%
               8,173    8,783    3.3%
STX Healthcare Management Services, Inc. (1)  Dental Practice Management  Subordinated Debt (14% Cash, Due 7/31/15)   7,425    7,425    7,425    2.8%
STX Healthcare Management Services, Inc.  Dental Practice Management  Common Stock (1,200,000 shares)   -    1,200    942    0.4%
STX Healthcare Management Services, Inc.  Dental Practice Management  Common Stock Warrants (1,154,254 shares)   -    218    906    0.3%
               8,843    9,273    3.5%
Take 5 Oil Change, LLC  Quick Lube Services  Common Stock (10,692 shares)   -    1,069    1,604    0.6%
               1,069    1,604    0.6%
TCE Holdings, Inc.  Oil & Gas Services  Subordinated Debt (12% Cash, 2% PIK, Due 11/22/18)   12,088    12,088    12,088    4.5%
TCE Holdings, Inc.  Oil & Gas Services  Subordinated Debt (12% Cash, 2% PIK, Due 2/1/19)   9,633    9,633    9,633    3.6%
TCE Holdings, Inc.  Oil & Gas Services  Class A Common Stock (3,600 shares)   -    3,600    3,600    1.3%
               25,321    25,321    9.4%
V12 Holdings(1)  Data Processing & Digital Marketing  Bridge Note (0% Cash, Due 12/31/14)   663    361    663    0.3%
V12 Holdings(1)  Data Processing & Digital Marketing  Tier 2 Note (0% Cash, Due 12/31/14)   81    44    81    0.0%
V12 Holdings(1)  Data Processing & Digital Marketing  Senior Subordinated Note (0% Cash, Due 12/31/14)   3,563    2,369    3,598    1.3%
V12 Holdings(1)  Data Processing & Digital Marketing  Tier 3 Note (0% Cash, Due 12/31/14)   299    206    314    0.1%
V12 Holdings(1)  Data Processing & Digital Marketing  Jr. Subordinated Note (0% Cash, Due 12/31/14)   2,750    -    405    0.2%
V12 Holdings(1)  Data Processing & Digital Marketing  Tier 4 Note (0% Cash, Due 12/31/14)   243    -    -    0.0%
V12 Holdings  Data Processing & Digital Marketing  Series A-1 Preferred Stock (255,102 shares)   -    -    -    0.0%
V12 Holdings  Data Processing & Digital Marketing  Series A-3 Preferred Stock (88,194 shares)   -    -    -    0.0%
V12 Holdings  Data Processing & Digital Marketing  Series A-5 Preferred Stock (20,530 shares)   -    -    -    0.0%
V12 Holdings  Data Processing & Digital Marketing  Common Stock Warrants (2,063,629 warrants)   -    -    -    0.0%
               2,980    5,061    1.9%
Sub Total Affiliate investments             $159,104   $189,098    70.4%
Control investments - 28.4%                          
CableOrganizer Acquisition, LLC  Computer Supply Retail  Senior Secured Debt (12% Cash, 4% PIK, Due 5/24/18)  $6,585   $6,585   $6,585    2.5%
CableOrganizer Acquisition, LLC  Computer Supply Retail  Common Stock (1,125,000 shares)   -    1,125    88    0.0%
               7,710    6,673    2.5%
KBP Investments, LLC (6) (7)  QSR Franchisee  Class A Preferred Stock (8,270 shares, 10% Dividend)   -    8,269    8,269    3.1%
KBP Investments, LLC  QSR Franchisee  Class A Common Stock (380,413 shares)   -    -    16,518    6.1%
               8,269    24,787    9.2%
Market E’s, LLC  Online Travel Sales & Marketing  Senior Secured Debt (10% Cash, Due 12/31/14)   650    650    650    0.2%
Market E’s, LLC (1)(2)  Online Travel Sales & Marketing  Senior Subordinated Debt (14% Cash, 3% PIK, Due 12/31/14)   3,014    2,832    988    0.4%
Market E’s, LLC  Online Travel Sales & Marketing  Class A Preferred Stock (600 shares)   -    240    -    0.0%
Market E’s, LLC  Online Travel Sales & Marketing  Class B Preferred Stock (2,411 shares)   -    965    -    0.0%
Market E’s, LLC  Online Travel Sales & Marketing  Class A Common Stock (600 shares)   -    -    -    0.0%
               4,687    1,638    0.6%
Micro Precision, LLC  Conglomerate  Subordinated Debt (10% Cash, Due 9/16/16)   1,862    1,862    1,862    0.7%
Micro Precision, LLC  Conglomerate  Subordinated Debt (14% Cash, 4% PIK, Due 9/16/16)   3,557    3,557    3,557    1.3%
Micro Precision, LLC  Conglomerate  Common Stock (47 units)   -