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EX-10.5 - EXHIBIT 10.5 - AMERICAN CAPITAL, LTDacas10q63014ex105.htm
EX-31.2 - EXHIBIT 31.2 - AMERICAN CAPITAL, LTDacas10q63014ex312.htm
EX-10.1 - EXHIBIT 10.1 - AMERICAN CAPITAL, LTDacas10q63014ex101.htm
EX-10.3 - EXHIBIT 10.3 - AMERICAN CAPITAL, LTDacas10q63014ex103.htm
EX-10.4 - EXHIBIT 10.4 - AMERICAN CAPITAL, LTDacas10q63014ex104.htm
EX-10.2 - EXHIBIT 10.2 - AMERICAN CAPITAL, LTDacas10q63014ex102.htm
EX-32 - EXHIBIT 32 - AMERICAN CAPITAL, LTDacas10q63014ex32.htm
EX-31.1 - EXHIBIT 31.1 - AMERICAN CAPITAL, LTDacas10q63014ex311.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
(Mark One)
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2014
 
OR
 
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission file number 814-00149
 
 
AMERICAN CAPITAL, LTD.
(Exact name of registrant as specified in its charter)

Delaware
 
52-1451377
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
 

2 Bethesda Metro Center
14th Floor
Bethesda, Maryland 20814
(Address of principal executive offices)
(301) 951-6122
(Registrant’s telephone number, including area code)



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, as amended (the “Exchange Act”) 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. Yes  x    No  o
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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes  o    No  o
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 definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  x
 
 
  
Accelerated filer  o
Non-accelerated filer  o
 
(Do not check if a smaller reporting company)
  
Smaller Reporting Company  o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No.  x
 
The number of shares of the issuers common stock, $0.01 par value legally outstanding as of July 28, 2014, was 268,603,617.
________________________________________________________________________________________________________________________





2


PART I. FINANCIAL INFORMATION
 
ITEM 1.
Financial Statements

AMERICAN CAPITAL, LTD.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
 
 
June 30,
 
December 31,
 
2014
 
2013
 
(unaudited)
 
 
Assets
 
 
 
Investments at fair value
 
 
 
Non-Control/Non-Affiliate investments (cost of $1,987 and $1,338, respectively)
$
1,688

 
$
1,085

Affiliate investments (cost of $207 and $302, respectively)
191

 
282

Control investments (cost of $3,370 and $3,908, respectively)
3,632

 
3,705

Total investments at fair value (cost of $5,564 and $5,548, respectively)
5,511

 
5,072

Cash and cash equivalents
135

 
315

Restricted cash and cash equivalents
130

 
74

Interest and dividend receivable
38

 
38

Deferred tax asset, net
431

 
414

Other
149

 
96

Total assets
$
6,394

 
$
6,009

Liabilities and Shareholders’ Equity
 
 
 
Debt ($5 and $5 due within one year, respectively)
$
791

 
$
791

Trade date settlement liability
206

 
15

Other
92

 
77

Total liabilities
1,089

 
883

Commitments and contingencies (Note 8)
 
 
 
Shareholders’ equity:
 
 
 
Undesignated preferred stock, $0.01 par value, 5.0 shares authorized, 0 issued and outstanding

 

Common stock, $0.01 par value, 1,000.0 shares authorized, 268.3 and 274.8 issued and 263.7 and 270.2 outstanding, respectively
3

 
3

Capital in excess of par value
6,193

 
6,296

Distributions in excess of net realized earnings
(729
)
 
(774
)
Net unrealized depreciation of investments
(162
)
 
(399
)
Total shareholders’ equity
5,305

 
5,126

Total liabilities and shareholders’ equity
$
6,394

 
$
6,009

Net Asset Value Per Common Share Outstanding
$
20.12

 
$
18.97

 
See accompanying notes.

3


AMERICAN CAPITAL, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions, except per share data)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2014
 
2013
 
2014
 
2013
Operating Revenue
 
 
 
 
 
 
 
Interest and dividend income
 
 
 
 
 
 
 
Non-Control/Non-Affiliate investments
$
28

 
$
53

 
$
41

 
$
121

Affiliate investments
(5
)
 
7

 
(5
)
 
17

Control investments
60

 
58

 
118

 
102

Total interest and dividend income
83

 
118

 
154

 
240

Fee income
 
 
 
 
 
 
 
Non-Control/Non-Affiliate investments
5

 
3

 
6

 
4

Affiliate investments

 
1

 

 
1

Control investments
12

 
8

 
24

 
18

Total fee income
17

 
12

 
30

 
23

Total operating revenue
100

 
130

 
184

 
263

Operating Expenses
 
 
 
 
 
 
 
Interest
11

 
11

 
23

 
22

Salaries, benefits and stock-based compensation
35

 
40

 
77

 
81

General and administrative
13

 
14

 
27

 
27

Total operating expenses
59

 
65

 
127

 
130

Net Operating Income Before Income Taxes
41

 
65

 
57

 
133

Tax provision
(15
)
 
(16
)
 
(26
)

(38
)
Net Operating Income
26

 
49

 
31

 
95

Net realized (loss) gain
 
 
 
 
 
 
 
Non-Control/Non-Affiliate investments
32

 
(15
)
 
34

 
(15
)
Affiliate investments
(27
)
 
10

 
(8
)
 
10

Control investments
(19
)
 
(30
)
 
(19
)
 
(37
)
Foreign currency transactions
1

 
(1
)
 
3

 
(1
)
Derivative agreements
1

 
(3
)
 
2

 
(17
)
Tax benefit
5

 
12

 
2

 
25

Total net realized (loss) gain
(7
)
 
(27
)
 
14

 
(35
)
Net unrealized appreciation (depreciation)
 
 
 
 
 
 
 
Portfolio company investments
185

 
(20
)
 
220

 
315

Foreign currency translation
(12
)
 
20

 
(16
)
 
(20
)
Derivative agreements and other
(3
)
 
1

 
(2
)
 
14

Tax benefit (provision)
23

 
(2
)
 
35

 
(2
)
Total net unrealized appreciation (depreciation)
193

 
(1
)
 
237

 
307

Total net gain (loss)
186

 
(28
)
 
251

 
272

Net Increase in Net Assets Resulting from Operations (“Net Earnings”)
$
212

 
$
21

 
$
282

 
$
367

 
 
 
 
 
 
 
 
Net Operating Income Per Common Share
 
 
 
 
 
 
 
Basic
$
0.10

 
$
0.16

 
$
0.12

 
$
0.32

Diluted
$
0.09

 
$
0.16

 
$
0.11

 
$
0.30

Net Earnings Per Common Share
 
 
 
 
 
 
 
Basic
$
0.80

 
$
0.07

 
$
1.05

 
$
1.22

Diluted
$
0.76

 
$
0.07

 
$
1.00

 
$
1.17

Weighted Average Shares of Common Stock Outstanding
 
 
 
 
 
 
 
Basic
266.2

 
297.5

 
268.4

 
301.4

Diluted
278.5

 
309.7

 
280.9

 
313.8

See accompanying notes.

4


AMERICAN CAPITAL, LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
(in millions, except per share data)
 
 
Six Months Ended
June 30,
 
2014
 
2013
Operations
 
 
 
Net operating income
$
31

 
$
95

Net realized gain (loss)
14

 
(35
)
Net unrealized appreciation
237

 
307

Net earnings
282

 
367

Capital Share Transactions
 
 
 
Proceeds from issuance of common stock upon exercise of stock options
16

 
16

Repurchase of common stock
(137
)
 
(253
)
Stock-based compensation
13

 
15

Other
5

 
5

Net decrease in net assets resulting from capital share transactions
(103
)
 
(217
)
Total increase in net assets
179

 
150

Net assets at beginning of period
5,126

 
5,429

Net assets at end of period
$
5,305

 
$
5,579

 
 
 
 
Net asset value per common share outstanding
$
20.12

 
$
19.28

Common shares outstanding at end of period
263.7

 
289.4

 
See accompanying notes.

5


AMERICAN CAPITAL, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in millions)
 
Six Months Ended
June 30,
 
2014
 
2013
Operating Activities
 
 
 
Net earnings
$
282

 
$
367

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
Net unrealized appreciation of investments
(202
)
 
(309
)
Net realized (gain) loss on investments
(12
)
 
60

Accrued PIK interest and dividends on investments
(3
)
 
(82
)
Stock-based compensation
18

 
15

(Increase) decrease in deferred tax asset, net
(11
)
 
16

Increase in interest and dividend receivable
(2
)
 
(6
)
(Increase) decrease in other assets
(5
)
 
9

(Decrease) increase in other liabilities
(16
)
 
14

Other
(2
)
 
2

Net cash provided by operating activities
47

 
86

Investing Activities
 
 
 
Purchases and originations of investments
(915
)
 
(163
)
(Repayments) fundings from portfolio company revolving credit facility investments, net
(9
)
 
3

Principal repayments on debt investments
239

 
282

Proceeds from loan syndications and loan sales
21

 
4

Payment of accrued PIK notes and dividend and accreted original issue discounts
124

 
67

Proceeds from equity investments
466

 
78

Increase in cash collateral on total return swaps
(35
)
 
(81
)
Other
(2
)
 
(23
)
Net cash (used in) provided by investing activities
(111
)
 
167

Financing Activities
 
 
 
Payments on notes payable from asset securitizations

 
(162
)
Proceeds from issuance of common stock upon exercise of stock options
16

 
16

Repurchase of common stock
(137
)
 
(253
)
Decrease in debt service escrows

 
115

Other
5

 
7

Net cash used in financing activities
(116
)
 
(277
)
Net decrease in cash and cash equivalents
(180
)
 
(24
)
Cash and cash equivalents at beginning of period
315

 
331

Cash and cash equivalents at end of period
$
135

 
$
307

 
See accompanying notes.

6


AMERICAN CAPITAL, LTD.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
(in millions, except per share data)
 
 
Six Months Ended
June 30,
 
2014
 
2013
Per Share Data
 
 
 
Net asset value at beginning of the period
$
18.97

 
$
17.84

Net operating income(1)
0.12

 
0.32

Net realized gain loss(1)
0.05

 
(0.12
)
Net unrealized appreciation(1)
0.88

 
1.02

Net earnings(1)
1.05

 
1.22

Issuance of common stock from stock compensation plans
(0.11
)
 
(0.11
)
Repurchase of common stock
0.15

 
0.31

Other, net(2)
0.06

 
0.02

Net asset value at end of period
$
20.12

 
$
19.28

Ratio/Supplemental Data
 
 
 
Per share market value at end of period
$
15.29

 
$
12.67

Total investment (loss) return(3)
(2.24
%)
 
5.40
%
Shares of common stock outstanding at end of period
263.7

 
289.4

Net assets at end of period
$
5,305

 
$
5,579

Average net assets(4)
$
5,170

 
$
5,559

Average debt outstanding(5)
$
800

 
$
689

Average debt outstanding per common share(1)
$
2.98

 
$
2.28

Portfolio turnover rate(6)
33.25
%
 
8.70
%
Ratio of operating expenses to average net assets(6)
4.95
%
 
4.72
%
Ratio of operating expenses, net of interest expense, to average net assets(6)
4.06
%
 
3.92
%
Ratio of interest expense to average net assets(6)
0.90
%
 
0.80
%
Ratio of net operating income to average net assets(6)
1.21
%
 
3.45
%
 
(1)
Weighted average basic per share data.
(2)
Represents the impact of (i) the other components in the changes in net assets, including other capital transactions such as the purchase of common stock held in deferred compensation trusts, stock-based compensation, income tax deductions related to the exercise of stock options and distribution of stock awards in excess of U.S. GAAP expense credited to additional paid-in capital and (ii) the different share amounts used in calculating per share data as a result of calculating certain per share data based upon the weighted average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end.
(3)
Total investment return is based on the change in the market value of our common stock taking into account dividends, if any, reinvested in accordance with the terms of our dividend reinvestment plan. The total investment return has not been annualized.
(4)
Based on the quarterly average of net assets as of the beginning and end of each period presented.
(5)
Based on a daily weighted average balance of debt outstanding, excluding discounts, during the period.
(6)
Ratios are annualized.



See accompanying notes.

7


AMERICAN CAPITAL, LTD.
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2014
(unaudited)
(in millions, except share data)
Company(1)
 
Industry
 
Investments
 
Cash
Interest
Rate(2)
PIK
Interest
Rate(2)
Maturity
Date(2)
 
# of
Shares/
Units
Owned
 
Principal
 
Cost
 
Fair
Value
NON-CONTROL / NON-AFFILIATE INVESTMENTS
 
 
 
 
 
 
 
 
Aderant North America, Inc.
 
Software
 
Senior Debt(6)
 
10.0
%
N/A

6/19
 
 
 
$
16.0

 
$
15.8

 
$
16.2

American Acquisition, LLC(7)
 
Capital Markets
 
Senior Debt(6)
 
4.1
%
15.2
%
12/14
 
 
 
2.7

 
2.7

 
2.7

Blue Wolf Capital Fund II, L.P.(7)
 
Capital Markets
 
Limited Partnership Interest(4)
 
 
 
 
 
 
 
 
 
8.2

 
8.0

BRG Sports, Inc.
 
Leisure Products
 
Redeemable Preferred Stock(4)
 
 
 
 
 
1,171

 
 
 
1.2

 
1.7

 
 
 
 
Common Units(4)
 
 
 
 
 
3,830,068

 
 
 
0.7

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.9

 
1.7

CAMP International Holding Co.
 
Transportation Infrastructure
 
Senior Debt(6)
 
8.3
%
N/A

12/19
 
 
 
15.0

 
15.0

 
15.4

CGSC of Delaware Holdings Corporation(7)
 
Insurance
 
Senior Debt(6)
 
8.3
%
N/A

10/20
 
 
 
2.0

 
2.0

 
1.9

CIBT Investment Holdings, LLC
 
Commercial Services & Supplies
 
Common Stock(4)(6)
 
 
 
 
 
13,381

 
 
 
8.9

 
16.4

Datapipe, Inc.
 
IT Services
 
Senior Debt(6)
 
8.5
%
N/A

9/19
 
 
 
12.5

 
12.4

 
12.6

Delsey Holding S.A.S.(7)
 
Textiles, Apparel & Luxury Goods
 
Senior Debt(5)(6)
 
6.6
%
3.3
%
12/16
 
 
 
15.3

 
14.3

 
14.5

 
 
 
Mezzanine Debt(5)(6)
 
N/A

11.0
%
12/22
 
 
 
2.0

 
1.8

 
0.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
16.1

 
14.7

Flexera Software LLC
 
Software
 
Senior Debt(6)
 
8.0
%
N/A

4/21
 
 
 
5.0

 
5.0

 
5.0

Foamex Innovations, Inc.
 
Household Durables
 
Common Stock(4)
 
 
 
 
 
2,708

 
 
 

 
0.3

 
 
 
 
Common Stock Warrants(4)(6)
 
 
 
 
 
7,067

 
 
 

 
0.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
0.4

Inmar, Inc.
 
Commercial Services & Supplies
 
Senior Debt(6)
 
8.0
%
N/A

1/22
 
 
 
20.0

 
19.8

 
19.9

Iotum Global Holdings, Inc.(7)
 
Diversified Telecommunication Services
 
Senior Debt(6)
 
N/A

10.0
%
5/17
 
 
 
3.0

 
3.0

 
3.0

Jazz Acquisition, Inc.
 
Aerospace & Defense
 
Senior Debt(6)
 
7.8
%
N/A

6/22
 
 
 
25.0

 
24.9

 
25.3

Landslide Holdings, Inc.
 
Software
 
Senior Debt(6)
 
8.3
%
N/A

2/21
 
 
 
9.0

 
9.0

 
9.1

LTG Acquisition, Inc.
 
Communications Equipment
 
Senior Debt(6)
 
9.0
%
N/A

10/20
 
 
 
46.0

 
46.0

 
46.0

 
 
 
Common Stock(4)(6)
 
 
 
 
 
5,000

 
 
 
5.0

 
5.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
51.0

 
51.0

Mitchell International, Inc.
 
IT Services
 
Senior Debt(6)
 
8.5
%
N/A

10/21
 
 

 
7.0

 
6.9

 
7.2

Net1 Las Colinas Manager, LLC
 
Real Estate
 
Senior Debt(5)(6)
 
7.7
%
N/A

10/15
 
 

 
1.3

 
1.1

 
1.1

Parts Holding Coörperatief U.A(7)
 
Distributors
 
Membership Entitlements(4)
 
 
 
 
 
173,060

 
 
 
6.4

 
1.5

Qualium I(7)
 
Capital Markets
 
Common Stock(4)
 
 
 
 
 
247,939

 
 
 
7.2

 
7.2

Roark - Money Mailer, LLC
 
Media
 
Common Membership Units(4)
 
 
 
 
 
3.5
%
 
 
 

 
0.8

Soil Safe Holdings, LLC
 
Professional Services
 
Senior Debt(6)
 
8.9
%
N/A

1/16-6/16
 
 
 
37.3

 
37.2

 
37.4

 
 
 
 
Mezzanine Debt(6)
 
12.3
%
3.3
%
7/16-11/16
 
 
 
45.2

 
45.0

 
43.0

 
 
 
 
Mezzanine Debt(5)(6)
 
N/A

17.5
%
8/17
 
 
 
52.5

 
19.0

 
17.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
101.2

 
98.1

Survey Sampling International, LLC
 
Media
 
Senior Debt(6)
 
9.5
%
N/A

6/20
 
 
 
38.8

 
38.1

 
38.1

Systems Maintenance Services Holding, Inc.
 
IT Services
 
Senior Debt(6)
 
9.3
%
N/A

10/20
 
 
 
28.0

 
27.8

 
27.8

Tectum Holdings, Inc.
 
Auto Components
 
Senior Debt(6)
 
9.0
%
N/A

3/19
 
 
 
25.0

 
24.9

 
24.9

Tyden Cayman Holdings Corp.(7)
 
Electronic Equipment, Instruments & Components
 
Convertible Preferred Stock(4)(6)
 
 

 
 
 
26,977

 
 
 
0.1

 
0.1

 
 
Common Stock(4)(6)
 
 

 
 
 
3,218,667

 
 
 
3.8

 
2.9

 
 
 
 
 
 
 
 
 
 
 
 
 
3.9

 
3.0

W3 CO.
 
Health Care Equipment & Supplies
 
Senior Debt(6)
 
9.3
%
N/A

9/20
 
 
 
17.0

 
16.8

 
17.0

WP CPP Holdings, LLC
 
Aerospace & Defense
 
Senior Debt(6)
 
8.8
%
N/A

4/21
 
 
 
40.0

 
39.8

 
40.5

WRH, Inc.
 
Life Sciences Tools & Services
 
Mezzanine Debt(6)
 
9.4
%
5.8
%
8/18
 
 
 
93.2

 
93.0

 
86.9

 
 
 
Convertible Preferred Stock(4)(6)
 
 
 
 
 
2,008,575

 
 
 
200.8

 
24.5

 
 
 
 
Common Stock(4)(6)
 
 
 
 
 
502,144

 
 
 
49.9

 

 
 
 
 
 
 
 

 
 
 
 
 
 
 
343.7

 
111.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SENIOR FLOATING RATE LOANS
 
 
 
 
 
 
 
 
24 Hour Fitness Worldwide, Inc.
 
Hotels, Restaurants & Leisure
 
Senior Debt(6)
 
4.8
%
N/A

5/21
 
 
 
10.3

 
10.4

 
10.4

Accellent Inc.
 
Health Care Equipment & Supplies
 
Senior Debt(6)
 
4.5
%
N/A

3/21
 
 
 
6.5

 
6.5

 
6.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acosta, Inc.
 
Media
 
Senior Debt(6)
 
4.3
%
N/A

3/18
 
 
 
8.1

 
8.1

 
8.2

Advantage Sales & Marketing Inc.
 
Food Products
 
Senior Debt(6)
 
4.3
%
N/A

12/17
 
 
 
5.0

 
5.0

 
5.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

8


AMERICAN CAPITAL, LTD.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2014
(unaudited)
(in millions, except share data)
Company(1)
 
Industry
 
Investments
 
Cash
Interest
Rate(2)
PIK
Interest
Rate(2)
Maturity
Date(2)
 
# of
Shares/
Units
Owned
 
Principal
 
Cost
 
Fair
Value
Affinia Group Inc.
 
Auto Components
 
Senior Debt(6)
 
4.8
%
N/A

4/20
 
 
 
0.7

 
0.7

 
0.7

AlixPartners, LLP
 
Diversified Financial Services
 
Senior Debt(6)
 
4.0
%
N/A

7/20
 
 
 
5.0

 
5.1

 
5.0

American Renal Holdings Inc.
 
Health Care Providers & Services
 
Senior Debt(6)
 
4.5
%
N/A

8/19
 
 
 
5.0

 
5.0

 
5.0

American Tire Distributors, Inc.
 
Distributors
 
Senior Debt(6)
 
5.8
%
N/A

6/18
 
 
 
4.0

 
4.0

 
4.1

Aquilex LLC
 
Commercial Services & Supplies
 
Senior Debt(6)
 
5.0
%
N/A

12/20
 
 
 
3.0

 
3.0

 
3.0

Aramark Corporation(7)
 
Leisure Products
 
Senior Debt(6)
 
3.3
%
N/A

2/21
 
 
 
5.0

 
5.0

 
5.0

Ardent Medical Services, Inc.
 
Health Care Providers & Services
 
Senior Debt(6)
 
6.8
%
N/A

7/18
 
 
 
0.3

 
0.3

 
0.3

ARG IH Corporation
 
Hotels, Restaurants & Leisure
 
Senior Debt(6)
 
5.0
%
N/A

11/20
 
 
 
5.0

 
5.0

 
5.0

Ascensus, Inc.
 
Commercial Services & Supplies
 
Senior Debt(6)
 
5.0
%
N/A

12/19
 
 
 
6.1

 
6.1

 
6.1

Asurion, LLC
 
Commercial Services & Supplies
 
Senior Debt(6)
 
5.0
%
N/A

5/19
 
 
 
7.5

 
7.5

 
7.5

Atlantic Power Limited Partnership(7)
 
Independent Power and Renewable Electricity Producers
 
Senior Debt(6)
 
4.8
%
N/A

2/21
 
 
 
4.7

 
4.7

 
4.7

Bally Technologies, Inc.(7)
 
Hotels, Restaurants & Leisure
 
Senior Debt(6)
 
4.3
%
N/A

11/20
 
 
 
2.3

 
2.3

 
2.3

BarBri, Inc.
 
Diversified Consumer Services
 
Senior Debt(6)
 
4.5
%
N/A

7/19
 
 
 
4.8

 
4.9

 
4.9

BJ’s Wholesale Club, Inc.
 
Food & Staples Retailing
 
Senior Debt(6)
 
4.5
%
N/A

9/19
 
 
 
5.0

 
5.0

 
5.0

Blackboard Inc.
 
Software
 
Senior Debt(6)
 
4.8
%
N/A

10/18
 
 
 
5.0

 
5.0

 
5.0

BWay Holding Company
 
Containers & Packaging
 
Senior Debt(6)
 
4.5
%
N/A

8/17
 
 
 
5.0

 
5.0

 
5.0

Capital Automotive L.P.
 
Real Estate
 
Senior Debt(6)
 
4.0
%
N/A

4/19
 
 
 
7.4

 
7.5

 
7.5

Capsugel Holdings US, Inc.
 
Pharmaceuticals
 
Senior Debt(6)
 
3.5
%
N/A

8/18
 
 
 
4.9

 
4.9

 
4.9

Carecore National, LLC
 
Health Care Providers & Services
 
Senior Debt(6)
 
5.5
%
N/A

3/21
 
 
 
5.0

 
5.1

 
5.1

Catalent Pharma Solutions, Inc.
 
Pharmaceuticals
 
Senior Debt(6)
 
4.5
%
N/A

5/21
 
 
 
7.5

 
7.5

 
7.5

CEC Entertainment, Inc.
 
Hotels, Restaurants & Leisure
 
Senior Debt(6)
 
4.3
%
N/A

2/21
 
 
 
5.0

 
5.0

 
5.0

Checkout Holding Corp.
 
Media
 
Senior Debt(6)
 
4.5
%
N/A

4/21
 
 
 
5.0

 
5.0

 
5.0

Connolly, LLC
 
Professional Services
 
Senior Debt(6)
 
5.3
%
N/A

5/21-5/22
 
 
 
9.9

 
9.9

 
10.0

Consolidated Communications, Inc.(7)
 
Diversified Telecommunication Services
 
Senior Debt(6)
 
4.3
%
N/A

12/20
 
 
 
5.0

 
5.0

 
5.0

CPG International LLC
 
Building Products
 
Senior Debt(6)
 
4.8
%
N/A

9/20
 
 
 
5.0

 
5.0

 
5.0

CPI International Inc.
 
Electronic Equipment, Instruments & Components
 
Senior Debt(6)
 
4.3
%
N/A

4/21
 
 
 
5.5

 
5.5

 
5.5

Del Monte Foods, Inc.(7)
 
Food Products
 
Senior Debt(6)
 
4.3
%
N/A

2/21
 
 
 
5.0

 
5.0

 
5.0

Dialysis Newco, Inc.
 
Health Care Providers & Services
 
Senior Debt(6)
 
6.5
%
N/A

10/21
 
 
 
7.0

 
7.0

 
7.0

Dole Food Company, Inc.
 
Food Products
 
Senior Debt(6)
 
4.5
%
N/A

11/18
 
 
 
7.4

 
7.5

 
7.4

Duff & Phelps Corporation
 
Capital Markets
 
Senior Debt(6)
 
4.5
%
N/A

4/20
 
 
 
5.0

 
5.0

 
5.0

EFS Cogen Holdings I, LLC
 
Electric Utilities
 
Senior Debt(6)
 
3.8
%
N/A

12/20
 
 
 
4.8

 
4.8

 
4.8

Electrical Components International, Inc.
 
Electrical Equipment
 
Senior Debt(6)
 
5.8
%
N/A

5/21
 
 
 
3.0

 
3.0

 
3.1

Entravision Communications Corporation(7)
 
Media
 
Senior Debt(6)
 
3.5
%
N/A

5/20
 
 
 
2.0

 
2.0

 
2.0

EquiPower Resources Holdings, LLC
 
Electric Utilities
 
Senior Debt(6)
 
4.3
%
N/A

12/18-12/19
 
 
 
5.0

 
5.0

 
5.0

Evergreen Acqco 1 LP
 
Multiline Retail
 
Senior Debt(6)
 
5.0
%
N/A

7/19
 
 
 
4.9

 
5.0

 
4.9

EWT Holdings III Corp.
 
Machinery
 
Senior Debt(6)
 
4.8
%
N/A

1/21
 
 
 
3.0

 
3.0

 
3.0

Filtration Group Corporation
 
Industrial Conglomerates
 
Senior Debt(6)
 
4.5
%
N/A

11/20
 
 
 
7.5

 
7.6

 
7.6

First Data Corporation
 
IT Services
 
Senior Debt(6)
 
4.2
%
N/A

3/21
 
 
 
5.0

 
5.0

 
5.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flexera Software LLC
 
Software
 
Senior Debt(6)
 
4.5
%
N/A

4/20
 
 
 
5.6

 
5.6

 
5.6

Fly Funding II S.à r.l.(7)
 
Trading Companies & Distributors
 
Senior Debt(6)
 
4.5
%
N/A

8/19
 
 
 
4.7

 
4.7

 
4.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

9


AMERICAN CAPITAL, LTD.
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2014
(unaudited)
(in millions, except share data)
Company(1)
 
Industry
 
Investments
 
Cash
Interest
Rate(2)
PIK
Interest
Rate(2)
Maturity
Date(2)
 
# of
Shares/
Units
Owned
 
Principal
 
Cost
 
Fair
Value
Flying Fortress Inc.(7)
 
Capital Markets
 
Senior Debt(6)
 
3.5
%
N/A

6/17
 
 
 
5.3

 
5.3

 
5.3

Global Tel*Link Corporation
 
Diversified Telecommunication Services
 
Senior Debt(6)
 
5.0
%
N/A

5/20
 
 
 
4.6

 
4.6

 
4.6

Great Wolf Resorts, Inc.
 
Hotels, Restaurants & Leisure
 
Senior Debt(6)
 
4.5
%
N/A

8/20
 
 
 
5.5

 
5.5

 
5.5

Grede Holdings LLC
 
Auto Components
 
Senior Debt(6)
 
4.8
%
N/A

6/21
 
 
 
2.5

 
2.5

 
2.5

Greeneden U.S. Holdings II, LLC
 
Software
 
Senior Debt(6)
 
4.0
%
N/A

2/20
 
 
 
5.0

 
5.0

 
5.0

Grosvenor Capital Management Holdings, LLLP
 
Capital Markets
 
Senior Debt(6)
 
3.8
%
N/A

1/21
 
 
 
10.0

 
10.0

 
10.0

Hearthside Group Holdings, LLC
 
Food Products
 
Senior Debt(6)
 
4.5
%
N/A

6/21
 
 
 
8.0

 
8.0

 
8.1

H. J. Heinz Company
 
Food Products
 
Senior Debt(6)
 
3.5
%
N/A

6/20
 
 
 
15.0

 
15.0

 
15.1

Hub International Limited
 
Insurance
 
Senior Debt(6)
 
4.3
%
N/A

10/20
 
 
 
5.0

 
5.0

 
5.0

Hudson Products Holdings Inc.
 
Machinery
 
Senior Debt(6)
 
5.0
%
N/A

3/19
 
 
 
3.5

 
3.5

 
3.5

Ikaria, Inc.
 
Health Care Providers & Services
 
Senior Debt(6)
 
5.0
%
N/A

2/21
 
 
 
5.2

 
5.3

 
5.3

Indra Holdings Corp.
 
Textiles, Apparel & Luxury Goods
 
Senior Debt(6)
 
5.3
%
N/A

4/21
 
 
 
2.2

 
2.2

 
2.2

Information Resources, Inc.
 
Professional Services
 
Senior Debt(6)
 
4.8
%
N/A

9/20
 
 
 
7.5

 
7.5

 
7.5

Inmar, Inc.
 
Commercial Services & Supplies
 
Senior Debt(6)
 
4.3
%
N/A

1/21
 
 
 
4.9

 
4.9

 
4.9

Intelsat Jackson Holdings S.A.(7)
 
Diversified Telecommunication Services
 
Senior Debt(6)
 
3.8
%
N/A

6/19
 
 
 
5.0

 
5.0

 
5.0

Interactive Data Corporation
 
Media
 
Senior Debt(6)
 
4.8
%
N/A

4/21-5/21
 
 
 
8.5

 
8.5

 
8.6

Ion Media Networks, Inc.
 
Media
 
Senior Debt(6)
 
5.0
%
N/A

12/20
 
 
 
5.0

 
5.0

 
5.0

J.C. Penney Corporation, Inc.(7)
 
Multiline Retail
 
Senior Debt(6)
 
5.0
%
N/A

6/19
 
 
 
2.0

 
2.0

 
2.0

J. Crew Group, Inc.
 
Specialty Retail
 
Senior Debt(6)
 
4.0
%
N/A

3/21
 
 
 
7.5

 
7.5

 
7.4

La Frontera Generation, LLC
 
Independent Power and Renewable Electricity Producers
 
Senior Debt(6)
 
4.5
%
N/A

9/20
 
 
 
5.0

 
5.0

 
5.0

Landslide Holdings, Inc.
 
Software
 
Senior Debt(6)
 
5.0
%
N/A

2/20
 
 
 
4.9

 
4.9

 
4.9

La Quinta Intermediate Holdings L.L.C.(7)
 
Hotels, Restaurants & Leisure
 
Senior Debt(6)
 
4.0
%
N/A

4/21
 
 
 
7.2

 
7.2

 
7.2

Leonardo Acquisition Corp.
 
Internet & Catalog Retail
 
Senior Debt(6)
 
4.3
%
N/A

1/21
 
 
 
7.5

 
7.5

 
7.5

MCC Iowa, LLC
 
Media
 
Senior Debt(6)
 
4.0
%
N/A

1/20
 
 
 
5.7

 
5.8

 
5.7

McJunkin Red Man Corporation(7)
 
Trading Companies & Distributors
 
Senior Debt(6)
 
5.0
%
N/A

11/19
 
 
 
5.0

 
5.0

 
5.0

Metaldyne, LLC
 
Auto Components
 
Senior Debt(6)
 
4.3
%
N/A

12/18
 
 
 
7.5

 
7.5

 
7