PhenixFIN Corp - FORM 10-Q - February 9, 2015

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EX-31.1 - EXHIBIT 31.1 - PhenixFIN Corpv399730_ex31-1.htm

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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 December 31, 2014
or
   
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 For the transition period from          to          

 

Commission file number: 1-35040

 

MEDLEY CAPITAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Delaware   27-4576073
(State or Other Jurisdiction of   (I.R.S. Employer
Incorporation or Organization)   Identification No.)
     
375 Park Avenue, 33rd Floor, New York, NY 10152   10152
(Address of Principal Executive Offices)   (Zip Code)

 

(212) 759-0777

(Registrant’s Telephone Number, Including Area Code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

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. 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 (§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 ¨ 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 definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer ¨           Accelerated filer x         Non-accelerated filer ¨        Smaller reporting company ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ¨ No x

 

As of February 9, 2015 the Registrant had 58,733,284 shares of common stock, $0.001 par value, outstanding.

 

 
 

 

MEDLEY CAPITAL CORPORATION

TABLE OF CONTENTS

 

Part I.   Financial Information    
         
Item 1.   Financial Statements    
         
    Consolidated Statements of Assets and Liabilities as of December 31, 2014 (unaudited) and September 30, 2014   F-1
         
    Consolidated Statements of Operations for the three months ended December 31, 2014 and 2013 (unaudited)   F-2
         
    Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2014 and 2013 (unaudited)   F-3
         
    Consolidated Statements of Cash Flows for the three months ended December 31, 2014 and 2013 (unaudited)   F-4
         
    Consolidated Schedules of Investments as of December 31, 2014 (unaudited) and September 30, 2014   F-5
         
    Notes to Consolidated Financial Statements (unaudited)   F-27
         
Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations   1
         
Item 3.   Quantitative and Qualitative Disclosures About Market Risk   15
         
Item 4.   Controls and Procedures   16
         
Part II.   Other Information   17
         
Item 1.   Legal Proceedings   17
         
Item 1A.   Risk Factors   17
         
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds   17
         
Item 3.   Defaults Upon Senior Securities   17
         
Item 4.   Other Information   17
         
Item 5.   Exhibits   18
         
SIGNATURES   19

 

 
 

 

Medley Capital Corporation 

Consolidated Statements of Assets and Liabilities 

 

   As of 
   December 31, 2014   September 30, 2014 
   (unaudited)     
ASSETS          
Investments at fair value          
Non-controlled/non-affiliated investments (amortized cost of $1,230,939,132 and $1,215,421,753, respectively)  $1,162,863,860   $1,185,859,238 
Controlled investments (amortized cost of $40,113,792 and $39,899,954, respectively)   38,244,294    38,244,386 
Affiliated investments (amortized cost of $20,117,040 and $19,943,150, respectively)   21,634,907    21,434,667 
Total investments at fair value   1,222,743,061    1,245,538,291 
Cash and cash equivalents   41,814,354    36,731,488 
Interest receivable   12,958,947    13,095,503 
Deferred financing costs, net   11,389,191    11,688,339 
Receivable for dispositions and investments sold   7,650,719    14,289,610 
Fees receivable   1,176,602    1,930,079 
Other assets   513,074    651,035 
Deferred offering costs   247,029    222,104 
Total assets  $1,298,492,977   $1,324,146,449 
           
LIABILITIES          
Revolving credit facility payable  $216,000,000   $146,500,000 
Term loan payable   171,500,000    171,500,000 
Notes payable   103,500,000    103,500,000 
SBA debentures payable   100,000,000    100,000,000 
Payable for investments originated, purchased and participated   -    54,995,000 

Management and incentive fees payable (See note 6)

   10,881,686    10,444,811 
Accounts payable and accrued expenses   2,207,979    2,330,244 
Interest and fees payable   1,843,286    2,096,171 
Administrator expenses payable (See note 6)   1,021,811    1,012,466 
Deferred tax liability   1,381,195    1,592,145 
Deferred revenue   320,267    265,493 
Due to affiliate   20,892    39,564 
Offering costs payable   6,232    13,674 
Total liabilities  $608,683,348   $594,289,568 
           
Commitments (See note 8)          
           
NET ASSETS          

Common stock, par value $.001 per share, 100,000,000 common shares authorized, 58,733,284 and 58,733,284 common shares issued and outstanding, respectively

  $58,733   $58,733 
Capital in excess of par value   739,443,065    739,443,065 
Accumulated undistributed net investment income   20,332,513    21,673,794 
Accumulated undistributed net realized gain/(loss) from investments   (216,584)   - 
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes   (69,808,098)   (31,318,711)
Total net assets   689,809,629    729,856,881 
           
Total liabilities and net assets  $1,298,492,977   $1,324,146,449 
           
NET ASSET VALUE PER SHARE  $11.74   $12.43 

 

See accompanying notes to consolidated financial statements.

 

F-1
 

 

Medley Capital Corporation 

Consolidated Statements of Operations 

 

   For the three months ended December 31 
   2014   2013 
   (unaudited)   (unaudited) 
INVESTMENT INCOME          
Interest from investments          
Non-controlled/Non-affiliated investments:          
Cash  $32,440,714   $22,064,232 
Payment-in-kind   1,850,728    2,625,658 
Affiliated investments:          
Cash   464,552    276,989 
Payment-in-kind   122,079    116,057 
Controlled investments:          
Cash   401,153    - 
Payment-in-kind   484,203    - 
Total interest income   35,763,429    25,082,936 
Interest from cash and cash equivalents   1,645    1,954 
Other fee income (See note 9)   4,083,857    6,583,348 
Total investment income   39,848,931    31,668,238 
           
EXPENSES          
Base management fees (See note 6)   5,784,178    3,664,966 
Incentive fees (See note 6)   5,097,508    4,257,715 
Interest and financing expenses   6,356,502    4,540,246 
Administrator expenses (See note 6)   1,021,811    671,996 
Professional fees   532,692    614,323 

Directors fees

   173,536    151,125 

Insurance

   142,823    139,565 

General and administrative

   349,848    597,443 
Total expenses   19,458,898    14,637,379 
NET INVESTMENT INCOME   20,390,033    17,030,859 
           
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:          
Net realized gain/(loss) from investments   (216,584)   45,000 
Net unrealized appreciation/(depreciation) on investments   (38,700,337)   (2,782,381)
Change in provision for deferred taxes on unrealized gain on investments   210,950    - 
Net gain/(loss) on investments   (38,705,971)   (2,737,381)
           
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS  $(18,315,938)  $14,293,478 
           
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE  $(0.31)  $0.36 
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE  $0.35   $0.42 
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)   58,733,284    40,162,592 
           
DIVIDENDS DECLARED PER COMMON SHARE  $0.37   $0.37 

 

See accompanying notes to consolidated financial statements.

 

F-2
 

 

Medley Capital Corporation 

Consolidated Statements of Changes in Net Assets

 

   For the three months ended December 31 
   2014   2013 
   (unaudited)   (unaudited) 
INCREASE FROM OPERATIONS:          
Net investment income  $20,390,033   $17,030,859 
Net realized gain/(loss) from investments   (216,584)   45,000 
Net unrealized appreciation/(depreciation) on investments   (38,700,337)   (2,782,381)
Provision for deferred taxes on unrealized gain on investments   210,950    - 
Net increase/(decrease) in net assets from operations   (18,315,938)   14,293,478 
SHAREHOLDER DISTRIBUTIONS:          
Distributions declared from net investment income   (21,731,314)   (14,856,574)
Net decrease in net assets from shareholder distributions   (21,731,314)   (14,856,574)
CAPITAL SHARE TRANSACTIONS:          
Issuance of common stock under dividend reinvestment plan (0 and 46,909 shares, respectively)   -    624,336 
Net increase in net assets from common share transactions   -    624,336 
Total increase/(decrease) in net assets   (40,047,252)   61,240 
Net assets at beginning of period   729,856,881    509,834,455 
Net assets at end of period including accumulated undistributed net investment income of  $20,332,513 and $14,358,908, respectively  $689,809,629   $509,895,695 
           
Net asset value per common share  $11.74   $12.68 

Common shares outstanding at end of period

   58,733,284    40,199,813 

 

See accompanying notes to consolidated financial statements.

 

F-3
 

 

Medley Capital Corporation 

Consolidated Statements of Cash Flows 

 

   For the three months ended December 31 
   2014   2013 
   (unaudited)   (unaudited) 
Cash flows from operating activities          
NET INCREASE IN NET ASSETS FROM OPERATIONS  $(18,315,938)  $14,293,478 
ADJUSTMENTS TO RECONCILE NET INCREASE IN NET ASSETS FROM OPERATIONS TO NET CASH USED BY OPERATING ACTIVITIES:          
Investment increases due to payment-in-kind interest   (2,082,905)   (3,197,006)
Net amortization of premium/(discount) on investments   (387,216)   (107,987)
Amortization of deferred financing costs   599,148    495,788 
Net realized (gain)/loss from investments   216,584    (45,000)
Net deferred income taxes   (210,950)   - 
Net unrealized (appreciation)/depreciation on investments   38,700,337    2,782,381 
Proceeds from sale and settlements of investments   98,691,113    110,806,727 
Purchases, originations and participations   (112,342,683)   (179,460,387)
(Increase)/decrease in operating assets:          
Interest receivable   136,556    555,564 
Fees receivable   753,477    - 
Other assets   137,961    (44,372)
Receivable for dispositions and investments sold   6,638,891    (2,186,043)
Increase (decrease)/in operating liabilities:          
Payable for investments purchased, originated and participated   (54,995,000)   (54,013)
Management and incentive fees payable, net   436,875    1,023,028 
Accounts payable and accrued expenses   (122,265)   324,666 
Interest and fees payable   (252,885)   246,931 
Administrator expenses payable   9,345    (29,212)
Deferred revenue   54,774    68,558 
Due to affiliate   (18,672)   (78,083)
NET CASH USED BY OPERATING ACTIVITIES   (42,353,453)   (54,604,982)
           
Cash flows from financing activities          
Proceeds from issuance of common stock, net of underwriting costs   -    624,336 
Offering costs paid   (32,367)   (131,843)
Borrowings on debt   69,500,000    115,100,000 
Paydowns on debt   -    (7,700,000)
Financing costs paid   (300,000)   (847,149)
Payments of cash dividends   (21,731,314)   (14,856,574)
NET CASH PROVIDED BY FINANCING ACTIVITIES   47,436,319    92,188,770 
           
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS   5,082,866    37,583,788 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

   36,731,488    8,557,899 

CASH AND CASH EQUIVALENTS, END OF PERIOD

  $41,814,354   $46,141,687 
           
Supplemental Information:          
Interest paid during the period  $5,990,801   $3,778,184 
Supplemental non-cash information          
Payment-in-kind interest income  $2,457,010   $2,741,715 
Net amortization of premium/(discount) on investments  $387,216   $107,987 
Amortization of deferred financing costs  $(599,148)  $(495,788)
Issuance of common stock in connection with dividend reinvestment plan  $-   $624,336 

 

See accompanying notes to consolidated financial statements.

 

F-4
 

 

Medley Capital Corporation 

Consolidated Schedule of Investments 

December 31, 2014

(Unaudited)

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                          
Non-Controlled/ Non-Affiliated Investments:                          
                              
AAR Intermediate Holdings LLC(11)  Oil and Gas  Senior Secured First Lien Term Loan  (LIBOR + 12.00%, 1.00% LIBOR Floor)(20)  3/30/2019   32,073,707    29,890,706    29,259,736    4.2%
      Senior Secured First Lien Term Loan  (LIBOR + 12.00%, 1.00% LIBOR Floor)(20)  6/30/2015   2,874,954    2,874,954    2,851,062    0.4%
      Warrants to purchase 1.98% of outstanding company equity.  3/30/2019   -    2,274,480    1,713,683    0.2%
             34,948,661    35,040,140    33,824,481      
                              
Accupac, Inc.  Containers, Packaging and Glass  Senior Secured Second Lien Term Loan (12.29% Cash)  11/10/2018   10,000,000    10,000,000    10,000,000    1.4%
             10,000,000    10,000,000    10,000,000      
                              
Albertville Quality Foods, Inc. (11)  Beverage, Food and Tobacco  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap)(19)  10/31/2018   17,452,830    17,452,830    17,761,571    2.6%
             17,452,830    17,452,830    17,761,571      
                              
Allen Edmonds Corporation  Retail Stores  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)  5/27/2019   20,000,000    20,000,000    20,200,000    2.9%
             20,000,000    20,000,000    20,200,000      
                              
Alora Pharmaceuticals LLC (11)  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)  9/13/2018   13,037,500    13,037,500    13,221,981    1.9%
             13,037,500    13,037,500    13,221,981      
                              
AM3 Pinnacle Corporation(9)  Telecommunications  Senior Secured First Lien Term Loan (10.00%)  10/22/2018   7,467,265    7,467,265    7,467,265    1.1%
             7,467,265    7,467,265    7,467,265      
                              
ARBOC Specialty Vehicles LLC  Automobile  Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor)(20)  3/21/2018   20,340,500    20,340,500    20,459,492    3.0%
             20,340,500    20,340,500    20,459,492      

 

F-5
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                          
Aurora Flight Sciences Corporation  Aerospace & Defense  Senior Secured Second Lien Term Loan
(11.25% Cash, 2.00% PIK)		  3/16/2016   16,213,969    16,213,969    16,122,685    2.3%
             16,213,969    16,213,969    16,122,685      
                              
Autosplice, Inc. (9)  Diversified/Conglomerate Manufacturing  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.00% LIBOR Floor)(20)  6/30/2019   14,817,844    14,817,844    15,000,525    2.2%
             14,817,844    14,817,844    15,000,525      
                              
BayDelta Maritime LLC  Cargo Transport  Warrants to purchase 10% of the outstanding equity  6/30/2016   -    25,000    253,379    0.0%
             -    25,000    253,379      
                              
Be Green Manufacturing and Distribution Centers LLC (9)(12)  Containers, Packaging and Glass  Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor)(20)  12/13/2018   5,000,000    5,000,000    4,911,179    0.7%
      Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor)(20)  12/13/2018   2,625,000    2,625,000    2,550,983    0.4%
      Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor)(20)  12/13/2018   354,167    354,167    337,767    0.0%
      1.63% Partnership Interest in RCAF VI CIV XXIII, L.P.      -    416,250    228,896    0.0%
             7,979,167    8,395,417    8,028,825      
                              
Brantley Transportation LLC (11)  Oil and Gas  Senior Secured First Lien Term Loan (12.00%)  8/2/2017   9,037,500    9,171,972    8,522,481    1.2%
             9,037,500    9,171,972    8,522,481      
                              
California Products Corporation  Chemicals, Plastics and Rubber  Senior Secured Second Lien Term Loan (13.00%)  5/27/2019   13,750,000    13,750,000    13,874,575    2.0%
             13,750,000    13,750,000    13,874,575      
                              
Calloway Laboratories, Inc.(10)(21)  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan (17.00% PIK)  9/30/2015   33,582,744    28,948,477    11,034,929    1.6%
      Warrants to purchase 15.00% of the outstanding equity  9/30/2015   -    68,433    -    0.0%
             33,582,744    29,016,910    11,034,929      
                              
CP OPCO LLC  Leisure, Amusement, Motion Pictures, Entertainment  Senior Secured First Lien Term Loan (LIBOR + 6.75% Cash, 1.00% LIBOR Floor)(20)  9/30/2020   20,000,000    20,000,000    20,000,000    2.9%
             20,000,000    20,000,000    20,000,000      
                              
ContMid, Inc.(11)  Automobile  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)  10/25/2019   15,000,000    15,000,000    15,000,000    2.2%
             15,000,000    15,000,000    15,000,000      

 

F-6
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                          
ConvergeOne Holdings Corporation  Business Services  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(20)  6/17/2021   12,500,000    12,381,548    12,312,750    1.8%
             12,500,000    12,381,548    12,312,750      
                              
Cornerstone Research & Development, Inc.  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(20)  4/28/2019   20,000,000    20,000,000    19,840,600    2.9%
      384.62 Units of Common Stock (13)  4/28/2019   -    400,000    84,226    0.0%
             20,000,000    20,400,000    19,924,826      
                              
Crow Precision Components LLC  Aerospace & Defense  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(19)  9/30/2019   10,000,000    10,000,000    10,000,000    1.4%
             10,000,000    10,000,000    10,000,000      
                              
                              
DLR Restaurants LLC (11)(12)   Restaurant & Franchise  Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)  4/18/2018   23,073,183    23,073,183    23,533,032    3.4%
      Unsecured Debt (12.00% Cash, 4.00% PIK)  4/18/2018   267,886    267,886    267,886    0.0%
             23,341,069    23,341,069    23,800,918      
                              
DreamFinders Homes LLC (9) (12)  Buildings and Real Estate  Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)  10/1/2018   14,585,164    14,441,526    14,862,340    2.2%
     

5,000 units of outstanding equity(24)

  10/1/2018   -    180,000    2,715,502    0.4%
             14,585,164    14,621,526    17,577,842      
                              
Dynamic Energy Services International LLC  Oil and Gas  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(19)  3/6/2018   18,287,500    18,287,500    17,743,081    2.6%
             18,287,500    18,287,500    17,743,081      
                              
Essex Crane Rental Corp. (11)  Business Services  Senior Secured First Lien Term Loan (LIBOR + 10.50% Cash, 1.00% LIBOR Floor)(20)  5/13/2019   20,000,000    20,000,000    19,878,200    2.9%
             20,000,000    20,000,000    19,878,200      
                              
Exide Technologies (7)(10)  Machinery (Nonagriculture, Nonconstruction, Nonelectric)  Senior Secured Note (8.63%)  2/1/2018   10,000,000    8,335,950    466,100    0.1%
             10,000,000    8,335,950    466,100      
                              
FC Operating LLC  Retail Stores  Senior Secured First Lien Term Loan (LIBOR + 10.75% Cash, 1.25% LIBOR Floor)(20)  11/14/2017   10,350,000    10,350,000    9,833,328    1.4%
             10,350,000    10,350,000    9,833,328      

 

F-7
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                          
Freedom Powersports LLC(9)  Automobile  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)(20)  9/26/2019   10,200,000    10,200,000    10,200,000    1.5%
      Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)(6)  9/26/2019   -    -    -    0.0%
             10,200,000    10,200,000    10,200,000      
                              
Harrison Gypsum LLC (11)  Mining, Steel, Iron and Nonprecious Metals  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)(19)  12/21/2017   25,185,709    25,185,709    25,083,958    3.6%
             25,185,709    25,185,709    25,083,958      
                              
HD Vest, Inc.  Finance  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.25% LIBOR Floor)(19)  6/18/2019   8,750,000    8,750,000    8,766,975    1.3%
             8,750,000    8,750,000    8,766,975      
                              
Help/Systems LLC  Business Services  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(19)  6/28/2020   15,000,000    15,000,000    15,071,400    2.2%
             15,000,000    15,000,000    15,071,400      
                              
HGDS Acquisition LLC  Business Services  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 3.50% PIK)(19)  3/28/2018   10,192,547    10,192,547    10,141,584    1.5%
             10,192,547    10,192,547    10,141,584      
                              
Ingenio LLC  Personal, Food and Miscellaneous Services  Senior Secured First Lien Term Loan (11.25%)  3/14/2019   23,556,415    23,556,415    23,456,536    3.4%
             23,556,415    23,556,415    23,456,536      
                              
Integra Telecom  Telecommunications  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.25% LIBOR Floor)(19)  2/22/2020   5,514,545    5,536,702    5,460,172    0.8%
             5,514,545    5,536,702    5,460,172      
                              
JD Norman Industries, Inc.  Diversified/Conglomerate Manufacturing  Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash)(19)  3/6/2019   23,400,000    23,400,000    24,039,221    3.5%
             23,400,000    23,400,000    24,039,221      
                              
Jordan Reses Supply Company LLC  Healthcare, Education and Childcare  Senior Secured Second Lien Term Loan (LIBOR + 11.00%, 1.00% LIBOR Floor)  4/24/2020   20,000,000    20,000,000    20,000,000    2.9%
             20,000,000    20,000,000    20,000,000      

 

F-8
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                          
Lighting Science Group Corporation  Containers, Packaging and Glass  Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(20)  2/19/2019   15,493,177    14,659,274    14,736,645    2.1%
      Warrants to purchase 2.38% of the outstanding equity  2/19/2019   -    955,680    104,889    0.0%
             15,493,177    15,614,954    14,841,534      
                              
Linc Energy Finance (USA), Inc.(8)  Oil and Gas  Senior Secured Note (12.50%)  10/31/2017   3,500,000    3,419,149    3,528,945    0.5%
             3,500,000    3,419,149    3,528,945      
                              
Lucky Strike Entertainment, L.L.C.  Leisure, Amusement, Motion Pictures, Entertainment  Senior Secured Second Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 2.00% PIK)(20)  12/24/2018   11,504,472    11,504,472    11,494,118    1.7%
             11,504,472    11,504,472    11,494,118      
                              
Lydell Jewelry Design Studio LLC (11)  Personal and Nondurable Consumer
Products (Manufacturing Only)		  Senior Secured First Lien Term Loan (LIBOR + 10.50%, 1.50% LIBOR Floor)(19)

  9/13/2018   13,072,000    13,072,000    10,764,531    1.6%
      Warrants to purchase 13.3% of the outstanding membership units  9/13/2018   -    -    -    0.0%
             13,072,000    13,072,000    10,764,531      
                              
Marine Accessories Corporation  Personal and Nondurable Consumer
Products (Manufacturing Only)		  Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 1.00% PIK)(19)  11/26/2018   9,952,785    9,952,785    10,132,632    1.5%
             9,952,785    9,952,785    10,132,632      
                              
Merchant Cash and Capital LLC (9)(12)  Structure Finance Securities  Senior Secured First Lien Delayed Draw (LIBOR + 8.00% Cash, 3.00% LIBOR Floor)(19)  3/4/2016   13,416,667    13,416,667    13,511,342    2.0%
      Senior Secured Second Lien Term Loan (12.00% Cash)  8/19/2016   15,000,000    15,000,000    15,000,000    2.2%
             28,416,667    28,416,667    28,511,342      
                              
Meridian Behavioral Health LLC (9)  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan A (LIBOR + 11.50%, 2.50% LIBOR Floor)(20)
  11/14/2016   10,289,141    10,031,194    10,440,597    1.5%
      Senior Secured First Lien Term Loan B (LIBOR + 11.50%, 2.50% LIBOR Floor)(20)
  11/14/2016   6,600,000    6,600,000    6,600,000    1.0%
      Warrants to purchase 8% of the outstanding equity  11/14/2016   -    536,296    2,146,744    0.3%
             16,889,141    17,167,490    19,187,341      

 

F-9
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                              
Miratech Intermediate Holdings, Inc. (9) (11)  Machinery (Nonagriculture, Nonconstruction, Nonelectric)  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)  5/9/2019   16,000,000    16,000,000    15,913,600    2.3%
      Senior Secured First Lien Delayed Draw (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(6)  5/9/2019   -    -    (79,754)   0.0%
             16,000,000    16,000,000    15,833,846      
                              
Modern VideoFilm, Inc. (10)  Leisure, Amusement, Motion Pictures, Entertainment  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor, 3.00% PIK)(19)  9/25/2017   14,921,960    13,942,350    4,192,930    0.6%
      Warrants to purchase 5.6%
of the outstanding equity		  9/25/2017   -    339,573    -    0.0%
             14,921,960    14,281,923    4,192,930      
                              
Momentum Telecom, Inc.  Telecommunications  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(19)  3/10/2019   9,730,482    9,730,482    9,828,371    1.4%
             9,730,482    9,730,482    9,828,371      
                              
Nation Safe Drivers Holdings, Inc.(9)  Automobile  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)(20)  9/29/2020   35,278,846    35,278,846    35,278,846    5.1%
             35,278,846    35,278,846    35,278,846      
                              
Nielsen & Bainbridge LLC  Home and Office Furnishings, Housewares, and Durable Consumer Products  Senior Secured Second Lien Term Loan (LIBOR + 9.25% Cash, 1.00% LIBOR Floor)(19)  8/15/2021   25,000,000    25,000,000    25,000,000    3.6%
             25,000,000    25,000,000    25,000,000      
                              
Northern Lights MIDCO LLC  Finance  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.50% LIBOR Floor)  11/24/2019   4,700,000    4,700,000    4,700,000    0.7%
             4,700,000    4,700,000    4,700,000      
                              
Northstar Aerospace, Inc.  Aerospace & Defense  Senior Secured Notes (10.25% Cash)  10/15/2019   25,000,000    25,000,000    25,000,000    3.6%
             25,000,000    25,000,000    25,000,000      
                              
Northstar Group Services, Inc.  Buildings and Real Estate  Unsecured Debt (11.00% Cash)  10/24/2019   22,920,000    22,920,000    23,126,280    3.4%
             22,920,000    22,920,000    23,126,280      
                              
Omnivere LLC  Business Services  Senior Secured First Lien Term Loan A (LIBOR + 12.00% Cash, 1.00% PIK)(20)  5/5/2019   21,702,057    20,911,714    17,286,840    2.5%
      Senior Secured First Lien Term Loan C (LIBOR + 12.00% Cash, 1.00% PIK)(20)  5/5/2019   3,184,326    3,184,326    2,536,485    0.4%
      Warrants to purchase outstanding equity(22)  5/5/2019   -    872,698    -    0.0%
             24,886,383    24,968,738    19,823,325      

 

F-10
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                          
Oxford Mining Company, LLC (9)  Mining, Steel, Iron and Nonprecious Metals  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)  12/31/2018   11,864,407    11,864,407    11,864,407    1.7%
             11,864,407    11,864,407    11,864,407      
                              
Pegasus Solutions, Inc.(9)(11)  Business Services  Senior Secured First Lien Term Loan A (LIBOR + 9.00%, 1.50% LIBOR Floor)  11/10/2019   31,238,095    31,238,095    31,238,095    4.5%
      Senior Secured First Lien Term Loan B (LIBOR + 10.50% PIK)  2/10/2018   5,801,269    5,801,269    5,801,269    0.8%
     

Equity - 1,230,769 Units(23)

  2/10/2018   -    1,230,769    1,230,769    0.2%
             37,039,364    38,270,133    38,270,133      
                              
The Plastics Group Acquisition Corp  Chemicals, Plastics and Rubber  Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)  2/28/2019   21,106,631    21,106,631    21,196,123    3.1%
             21,106,631    21,106,631    21,196,123      
                              
Prestige Industries LLC  Business Services  Senior Secured Second Lien Term Loan (18.00% PIK)  1/31/2017   6,930,477    6,852,490    6,367,307    0.9%
      Warrants to purchase 0.63% of the outstanding common units  1/31/2017   -    151,855    -    0.0%
             6,930,477    7,004,345    6,367,307      
                              
Prince Mineral Holding Corp.(8)  Mining, Steel, Iron and Nonprecious Metals  Senior Secured Note (12.00%)  12/15/2019   6,800,000    6,737,281    7,215,956    1.1%
             6,800,000    6,737,281    7,215,956      
                              
RCS Management Corporation & Specialized Medical Services, Inc.(9)  Diversified/Conglomerate Service  Senior Secured Second Lien Term Loan ( LIBOR + 11.00% Cash, 1.50% LIBOR Floor, 0.50% PIK)(19)  4/30/2015   28,637,523    28,637,523    28,637,523    4.2%
             28,637,523    28,637,523    28,637,523      
                              
Red Skye Wireless LLC (9)(12)  Retail Stores  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)  6/27/2018   27,440,799    27,440,799    27,925,132    4.0%
             27,440,799    27,440,799    27,925,132      
                              
Reddy Ice Corporation  Beverage, Food and Tobacco  Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)(19)  11/1/2019   17,000,000    17,000,000    15,866,950    2.3%
             17,000,000    17,000,000    15,866,950      

 

F-11
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                          
Response Team Holdings, LLC  Buildings and Real Estate  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 2.00% LIBOR Floor)(19)  3/28/2019   25,344,298    25,344,298    25,477,609    3.7%
      Preferred Equity (12.00% PIK)  3/28/2019   5,073,868    4,691,776    4,841,789    0.7%
      Warrants to purchase 6.17% of the outstanding common units  3/28/2019   -    429,012    993,945    0.1%
             30,418,166    30,465,086    31,313,343      
                              
Safeworks LLC(11)  Buildings and Real Estate  Unsecured Debt (12.00% Cash)  1/31/2020   15,000,000    15,000,000    15,000,000    2.2%
             15,000,000    15,000,000    15,000,000      
                              
Sendero Drilling Company LLC (9) (12)  Oil and Gas  Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)(19)  3/18/2019   18,836,188    18,138,002    17,836,662    2.6%
      Warrants to purchase 5.52% of the outstanding common units  3/18/2019   -    793,523    1,792,766    0.3%
             18,836,188    18,931,525    19,629,428      
                              
Seotowncenter, Inc.(11)  Business Services  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(20)  9/11/2019   27,500,000    27,500,000    27,500,000    4.0%
      3,249.697 shares of Common Stock(14)  9/11/2019   -    500,000    500,000    0.1%
             27,500,000    28,000,000    28,000,000      
                              
Stancor, Inc.  Machinery (Nonagriculture, Nonconstruction, Nonelectric)  Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 0.75% LIBOR Floor)(19)  8/19/2019   7,000,000    7,000,000    7,000,000    1.0%
      250,000 Class A Units(15)  8/19/2019   -    250,000    250,000    0.0%
             7,000,000    7,250,000    7,250,000      
                              
T. Residential Holdings LLC  Buildings and Real Estate  Senior Secured First Lien Term Loan (12.00%)  3/28/2019   20,000,000    20,000,000    20,095,000    2.9%
             20,000,000    20,000,000    20,095,000      
                              
Taylored Freight Services LLC  Business Services  Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 2.00% PIK, 1.50% LIBOR Floor)(20)  11/1/2017   14,602,437    14,602,437    13,315,816    1.9%
             14,602,437    14,602,437    13,315,816      
                              
Tempel Steel Company(8)  Mining, Steel, Iron and Nonprecious Metals  Senior Secured Note (12.00%)  8/15/2016   11,000,000    10,916,601    10,367,500    1.5%
             11,000,000    10,916,601    10,367,500      
                              
Tenere Acquisition Corp.(9)(12)  Diversified/Conglomerate Manufacturing  Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)  12/15/2017   11,189,615    11,189,615    11,453,407    1.7%
             11,189,615    11,189,615    11,453,407      

 

F-12
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                          
Transtelco Inc.  Telecommunications  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor)(19)  11/19/2017   19,008,000    19,008,000    19,067,875    2.8%
             19,008,000    19,008,000    19,067,875      
                              
Untangle, Inc.  Business Services  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash)(19)  4/18/2019   9,875,000    9,875,000    9,888,331    1.4%
             9,875,000    9,875,000    9,888,331      
                              
Velocity Pooling Vehicle LLC  Automobile  Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(19)  5/14/2022   24,000,000    20,787,577    21,060,007    3.1%
             24,000,000    20,787,577    21,060,007      
                              
Water Capital USA, Inc.(10)    Finance  Senior Secured First Lien Term Loan (7.00% Cash, 7.00% PIK)  1/3/2015   27,456,140    27,298,353    -    0.0%
             27,456,140    27,298,353    -      
                              
Wheels Up Partners LLC (11)  Aerospace & Defense  Senior Secured First Lien Delayed Draw (LIBOR + 8.55% Cash, 1.00% LIBOR Floor)(20)  10/15/2021   19,258,000    19,258,000    19,320,781    2.8%
             19,258,000    19,258,000    19,320,781      
                              
Window Products, Inc.  Buildings and Real Estate  Senior Secured Second Lien Term Loan (LIBOR + 10.75% Cash, 1.00% LIBOR Floor)(20)  12/27/2019   14,000,000    14,000,000    13,985,720    2.0%
             14,000,000    14,000,000    13,985,720      
                              
Subtotal Non-Controlled / Non-Affiliated Investments           $1,237,719,589   $1,230,939,132   $1,162,863,860      
                              
Control Investments:(4)                             
                              
United Road Towing Inc.   Personal, Food and Miscellaneous Services  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash)(20)  2/21/2020   17,000,000    17,000,000    17,000,000    2.4%
      Preferred Equity Class C (8.00% PIK)  2/21/2020   18,802,789    17,466,376    18,572,831    2.7%
      Preferred Equity  Class C-1 (8.00% PIK)  2/21/2020   171,314    171,314    59,250    0.0%
      Preferred Equity  Class A-2 (8.00% PIK)  2/21/2020   4,709,728    4,378,005    1,514,112    0.2%
      65,809.73 Class B Common Units(16)  2/21/2020   -    1,098,097    1,098,101    0.2%
             40,683,831    40,113,792    38,244,294      
                              
Subtotal Control Investments           $40,683,831   $40,113,792   $38,244,294      

 

F-13
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of Net
Assets (3)		 
                          
Affiliated Investments:                          
                              
AmveStar Holdings LLC  Buildings and Real Estate  Senior Secured First Lien Term Loan (10.00% Cash)  9/10/2019   6,670,000    6,670,000    6,670,000    1.0%
      Preferred Equity - 33,300 Units(17)  9/10/2019   -    3,330,000    3,330,000    0.5%
             6,670,000    10,000,000    10,000,000      
                              
Cymax Stores, Inc.(7)   Home and Office Furnishings, Housewares, and Durable Consumer Products  Senior Secured First Lien Term Loan (10.00% Cash, 5.00% PIK)  8/1/2015   9,594,210    9,438,886    9,355,122    1.4%
      190 Class B Common Units (5)  8/1/2015   -    678,154    2,279,785    0.3%
             9,594,210    10,117,040    11,634,907      
                              
Subtotal Affiliated Investments        $16,264,210   $20,117,040   $21,634,907      
                              
 Total Investments, December 31, 2014     $1,294,667,630   $1,291,169,964   $1,222,743,061    177.3%

 

(1)All of our investments are domiciled in the United States except for Cymax Stores, Inc. which is domiciled in Canada and denominated in USD. Certain investments also have international operations.
(2)Par amount includes accumulated PIK interest and is net of repayments.
(3)Percentage is based on net assets of $689,809,629 as of December 31, 2014.
(4)Control Investments are defined by the Investment Company Act of 1940 ("1940 Act") as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
(5)190 Class B Common Units represent 19% ownership of Cymax Stores, Inc.
(6)The entire commitment was unfunded at December 31, 2014. As such, no interest is being earned on this investment.
(7)The investment is not a qualifying asset as defined under Section 55(a) of 1940 Act, in a whole, or in part.
(8)Securities are exempt from registration under Rule 144a of the Securities Act of 1933. These securities represent a fair value of $21.1 million and 3.0% of net assets as of December 31, 2014 and are considered restricted.
(9)The investment has an unfunded commitment as of December 31, 2014 (See note 8).
(10)The investment was on non-accrual status as of December 31, 2014.
(11)A portion of this investment was sold via a participation agreement (See note 3).
(12)Includes an analysis of the value of any unfunded loan commitments.
(13)384.62 Units represents 1.961% ownership of INI Parent, Inc.
(14)3,249.697 shares of Common Stock represents 2.917% ownership of Boostability Holdings, Inc.
(15)250,000 Class A Units represents 0.882% ownership of Stancor, Inc.
(16)65,809.73 Class B Common Units Represents 65.8% ownership of United Road Towing, Inc.
(17)33,300 Units represents 18.167% ownership of Amvestar Holdings LLC.
(18)

Gross unrealized appreciation, gross unrealized depreciation, and net depreciation for federal income tax purposes totaled $33.3 million, $79.6 million and $46.2 million, respectively. The tax cost of investments is $1,269.0 million.

(19)The interest rate on these loans is subject to a base rate plus 1 Month LIBOR, which at December 31, 2014 was 0.16%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 1 Month LIBOR rate at December 31, 2014, the prevailing rate in effect at December 31, 2014 was the base rate plus the LIBOR Floor.
(20)The interest rate on these loans is subject to a base rate plus 3 Month LIBOR, which at December 31, 2014 was 0.23%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 3 Month LIBOR rate at December 31, 2014, the prevailing rate in effect at December 31, 2014 was the base rate plus the LIBOR Floor.
(21)Investment consists of senior secured first lien term loan A (par and fair value of $8,010,833 and $6,328,558, respectively), senior secured first lien term loan B (par and fair value of $20,312,300 and $2,234,353, respectively) and senior secured first lien term loan - Willow Street Medical Laboratory LLC (par and fair value of $5,259,612 and $2,472,018, respectively).
(22)Warrants to purchase 12.50% of Omnivere Holding Company, LLC and 38.89% of Omnivere, LLC.
(23)1,230,769 Units represents 4.17% ownership of Pegasus Solutions, Inc.
(24)5,000 Common Units represents 5.0% ownership of Dream Finders Homes, LLC.

 

See accompanying notes to consolidated financial statements.

 

F-14
 

 

Medley Capital Corporation

 

Consolidated Schedule of Investments

 

September 30, 2014

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of  Net
Assets (3)		 
                          
Non-Controlled/ Non-Affiliated Investments:                             
                              
AAR Intermediate Holdings, LLC (11)  Oil and Gas  Senior Secured First Lien Term Loan  (LIBOR + 12.00%, 1.00% LIBOR Floor) (20)  3/30/2019   36,831,683    34,324,994    34,323,923    4.7%
      Senior Secured First Lien Term Loan  (LIBOR + 12.00%, 1.00% LIBOR Floor) (20)  6/30/2015   3,168,317    3,168,317    3,168,317    0.4%
      Warrants to purchase 1.98% of outstanding company equity.  3/30/2019   -    2,507,760    2,507,760    0.3%
             40,000,000    40,001,071    40,000,000      
                              
Accupac, Inc.  Containers, Packaging and Glass  Senior Secured Second Lien Term Loan (12.29% Cash)  11/10/2018   10,000,000    10,000,000    10,000,000    1.4%
             10,000,000    10,000,000    10,000,000      
                              
Aderant North America, Inc.  Electronics  Senior Secured Second Lien Term Loan (LIBOR + 8.75% , 1.25% LIBOR Floor) (19)  6/20/2019   4,550,000    4,550,000    4,614,519    0.6%
             4,550,000    4,550,000    4,614,519      
                              
Albertville Quality Foods, Inc. (11)  Beverage, Food and Tobacco  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap) (19)  10/31/2018   17,452,830    17,452,830    17,697,519    2.4%
             17,452,830    17,452,830    17,697,519      
                              
Allen Edmonds Corporation  Retail Stores  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (19)  5/27/2019   20,000,000    20,000,000    20,206,400    2.8%
            20,000,000    20,000,000    20,206,400      

  

F-15
 

  

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of  Net
Assets (3)		 
                          
Alora Pharmaceuticals LLC (11)  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (19)  9/13/2018   13,300,000    13,300,000    13,544,587    1.9%
             13,300,000    13,300,000    13,544,587      
                              
AM3 Pinnacle Corporation (9)  Telecommunications  Senior Secured First Lien Term Loan (10.00%)  10/22/2018   7,834,944    7,834,944    7,834,944    1.1%
             7,834,944    7,834,944    7,834,944      
                              
Amerit Fleet Services, Inc.  Business Services  Senior Secured Second Lien Term Loan (LIBOR + 9.70% Cash, 1.00% LIBOR Floor, 1.50% PIK) (19)  12/21/2016   8,206,151    8,206,151    8,196,960    1.1%
             8,206,151    8,206,151    8,196,960      
                              
ARBOC Specialty Vehicles LLC  Automobile  Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor) (20)  3/21/2018   20,965,500    20,965,500    21,149,368    2.9%
             20,965,500    20,965,500    21,149,368      
                              
Aurora Flight Sciences Corporation  Aerospace & Defense  Senior Secured Second Lien Term Loan (11.25% Cash, 2.00% PIK)  3/16/2016   16,131,380    16,131,380    16,131,380    2.2%
             16,131,380    16,131,380    16,131,380      
                              
Autosplice, Inc. (9)  Diversified/Conglomerate Manufacturing  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.00% LIBOR Floor) (20)  6/30/2019   14,817,844    14,817,844    14,817,844    2.0%
             14,817,844    14,817,844    14,817,844      
                              
BayDelta Maritime LLC  Cargo Transport  Warrants to purchase 10% of the outstanding equity  6/30/2016   -    25,000    524,692    0.1%
             -    25,000    524,692      
                              
Be Green Manufacturing and Distribution Centers LLC (9)(12)  Containers, Packaging and Glass  Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor) (20)  12/13/2018   5,000,000    5,000,000    4,928,350    0.7%
      Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor) (20)  12/13/2018   1,791,667    1,791,667    1,731,958    0.2%
      Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor) (20)  12/13/2018   354,167    354,167    341,250    0.0%
      1.63% Partnership Interest in Be Green Packaging LLC      -    416,250    287,947    0.0%
             7,145,834    7,562,084    7,289,505      

  

F-16
 

  

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of  Net
Assets (3)		 
                          
Brantley Transportation LLC (11)  Oil and Gas  Senior Secured First Lien Term Loan (12.00%)  8/2/2017   9,375,000    9,520,135    9,375,000    1.3%
             9,375,000    9,520,135    9,375,000      
                              
California Products Corporation  Chemicals, Plastics and Rubber  Senior Secured Second Lien Term Loan (13.00%)  5/27/2019   13,750,000    13,750,000    13,879,800    1.9%
             13,750,000    13,750,000    13,879,800      
                              
Calloway Laboratories, Inc. (10)(21)  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan (17.00% PIK)  9/30/2015   31,800,948    28,573,477    15,484,032    2.1%
      Warrants to purchase 15.00% of the outstanding equity  9/30/2015   -    68,433    -    0.0%
             31,800,948    28,641,910    15,484,032      
                              
CP OPCO LLC  Leisure, Amusement, Motion Pictures, Entertainment  Senior Secured First Lien Term Loan (LIBOR + 6.75% Cash, 1.00% LIBOR Floor) (20)  9/30/2020   20,000,000    20,000,000    20,000,000    2.7%
             20,000,000    20,000,000    20,000,000      
                              
ContMid, Inc. (11)  Automobile  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (19)  10/25/2019   15,000,000    15,000,000    15,000,000    2.1%
             15,000,000    15,000,000    15,000,000      
                              
ConvergeOne Holdings Corporation  Business Services  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor) (20)  6/17/2021   12,500,000    12,378,218    12,458,750    1.7%
             12,500,000    12,378,218    12,458,750      
                              
                              
Cornerstone Research & Development, Inc.  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor) (20)  4/28/2019   20,000,000    20,000,000    20,013,000    2.7%
      384.62 Units of Common Stock (13)  4/28/2019   -    400,000    346,272    0.0%
             20,000,000    20,400,000    20,359,272      
                              
Crow Precision Components LLC  Aerospace & Defense  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (19)  9/30/2019   10,000,000    10,000,000    10,000,000    1.4%
             10,000,000    10,000,000    10,000,000      
                              
Dispensing Dynamics International (8)  Personal and Nondurable Consumer Products (Manufacturing Only)  Senior Secured Note (12.50%)  1/1/2018   2,800,000    2,759,638    3,031,000    0.4%
             2,800,000    2,759,638    3,031,000      

 

F-17
 

  

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of  Net
Assets (3)		 
                          
DLR Restaurants LLC (9)(11)(12)  Restaurant & Franchise  Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)  4/18/2018   20,434,015    20,434,015    20,892,695    2.9%
      Unsecured Debt (12.00% Cash, 4.00% PIK)  4/18/2018   265,166    265,166    265,166    0.0%
             20,699,181    20,699,181    21,157,861      
                              
DreamFinders Homes LLC (9) (12)  Buildings and Real Estate  Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash) (20)  10/1/2018   12,296,397    12,145,238    12,470,916    1.7%
      Warrants to purchase 5% of outstanding equity  10/1/2018   -    180,000    1,748,827    0.2%
             12,296,397    12,325,238    14,219,743      
                              
Dynamic Energy Services International LLC  Oil and Gas  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (19)  3/6/2018   18,525,000    18,525,000    18,533,151    2.5%
             18,525,000    18,525,000    18,533,151      
                              
Essex Crane Rental Corp. (11)  Business Services  Senior Secured First Lien Term Loan (LIBOR + 10.50% Cash, 1.00% LIBOR Floor) (20)  5/13/2019   20,000,000    20,000,000    19,922,200    2.7%
             20,000,000    20,000,000    19,922,200      
                              
Exide Technologies (7)(10)  Machinery (Nonagriculture, Nonconstruction, Nonelectric)  Senior Secured Note (8.63%)  2/1/2018   10,000,000    8,335,950    2,487,500    0.3%
             10,000,000    8,335,950    2,487,500      
                              
FC Operating LLC  Retail Stores  Senior Secured First Lien Term Loan (LIBOR + 10.75% Cash, 1.25% LIBOR Floor) (20)  11/14/2017   10,350,000    10,350,000    9,854,959    1.4%
             10,350,000    10,350,000    9,854,959      
                              
Freedom Powersports LLC (9)  Automobile  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor) (20)  9/26/2019   10,200,000    10,200,000    10,200,000    1.4%
      Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash, 1.50% LIBOR Floor) (6)  9/26/2019   -    -    -    0.0%
             10,200,000    10,200,000    10,200,000      
                              
GSG Fasteners, LLC (11)  Personal and Nondurable Consumer Products (Manufacturing Only)  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor) (19)  11/18/2018   8,662,500    8,662,500    8,835,750    1.2%
             8,662,500    8,662,500    8,835,750      

  

F-18
 

  

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of  Net
Assets (3)		 
                          
Harrison Gypsum LLC (11)  Mining, Steel, Iron and Nonprecious Metals  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor) (19)  12/21/2017   25,459,294    25,459,294    25,078,678    3.4%
             25,459,294    25,459,294    25,078,678      
                              
HD Vest, Inc.  Finance  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.25% LIBOR Floor) (19)  6/18/2019   8,750,000    8,750,000    8,925,000    1.2%
             8,750,000    8,750,000    8,925,000      
                              
                              
Help/Systems LLC  Business Services  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (19)  6/28/2020   15,000,000    15,000,000    15,208,500    2.1%
             15,000,000    15,000,000    15,208,500      
                              
HGDS Acquisition LLC  Business Services  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 3.50% PIK) (19)  3/28/2018   10,101,921    10,101,921    10,019,085    1.4%
             10,101,921    10,101,921    10,019,085      
                              
Ingenio LLC (22)  Personal, Food and Miscellaneous Services  Senior Secured First Lien Term Loan (11.25%)  3/14/2019   23,634,540    23,634,540    23,606,415    3.2%
             23,634,540    23,634,540    23,606,415      
                              
Integra Telecom  Telecommunications  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.25% LIBOR Floor) (19)  2/22/2020   12,132,000    12,154,991    12,374,640    1.7%
             12,132,000    12,154,991    12,374,640      
                              
Interface Security Systems (8)  Electronics  Senior Secured Note (9.25%)  1/15/2018   3,333,000    3,333,000    3,424,659    0.5%
             3,333,000    3,333,000    3,424,659      
                              
JD Norman Industries, Inc.  Diversified/Conglomerate Manufacturing  Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash) (19)  3/6/2019   23,700,000    23,700,000    23,790,060    3.4%
             23,700,000    23,700,000    23,790,060      
                              
Lexmark Carpet Mills, Inc.  Home and Office Furnishings, Housewares, and Durable Consumer Products  Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor, 2.50% LIBOR Cap) (19)  9/30/2018   29,875,880    29,875,880    30,573,482    4.2%
             29,875,880    29,875,880    30,573,482      

  

F-19
 

  

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (18)   Fair Value   % of  Net
Assets (3)