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 June 30, 2015
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 August 10, 2015 the Registrant had 57,738,526 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 June 30, 2015 (unaudited) and September 30, 2014	F-1
		Consolidated Statements of Operations for the three and nine months ended June 30, 2015 and 2014 (unaudited)	F-2
		Consolidated Statements of Changes in Net Assets for the nine months ended June 30, 2015 and 2014 (unaudited)	F-3
		Consolidated Statements of Cash Flows for the nine months ended June 30, 2015 and 2014 (unaudited)	F-4
		Consolidated Schedules of Investments as of June 30, 2015 (unaudited) and September 30, 2014	F-5
		Notes to Consolidated Financial Statements (unaudited)	F-26
Item 2.		Management's Discussion and Analysis of Financial Condition and Results of Operations	1
Item 3.		Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.		Controls and Procedures	18
Part II.		Other Information	19
Item 1.		Legal Proceedings	19
Item 1A.		Risk Factors	19
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3.		Defaults Upon Senior Securities	20
Item 4.		Other Information	20
Item 5.		Exhibits	20
SIGNATURES			24

 

  

Medley Capital Corporation 

Consolidated Statements of Assets and Liabilities 

 

		As of
		June 30, 2015				September 30, 2014
		(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $1,216,982,363 and $1,215,421,753, respectively)		$	1,156,183,992			$	1,185,859,238
Controlled investments (amortized cost of $41,064,923 and $39,899,954, respectively)			37,999,642				38,244,386
Affiliated investments (amortized cost of $10,000,000 and $19,943,150, respectively)			10,000,000				21,434,667
Total investments at fair value			1,204,183,634				1,245,538,291
Cash and cash equivalents			36,239,851				36,731,488
Interest receivable			11,810,847				13,095,503
Deferred financing costs, net			11,127,058				11,688,339
Fees receivable			1,474,458				1,930,079
Other assets			801,394				651,035
Receivable for dispositions and investments sold			4,282,342				14,289,610
Deferred offering costs			306,844				222,104
Total assets		$	1,270,226,428			$	1,324,146,449
LIABILITIES
Revolving credit facility payable		$	181,700,000			$	146,500,000
Term loan payable			171,500,000				171,500,000
Notes payable			103,500,000				103,500,000
SBA debentures payable			130,000,000				100,000,000
Payable for investments originated, purchased and participated			-				54,995,000
Management and incentive fees payable (See note 6)			9,856,011				10,444,811
Accounts payable and accrued expenses			2,216,562				2,330,244
Interest and fees payable			1,902,482				2,096,171
Administrator expenses payable (See note 6)			1,066,118				1,012,466
Deferred tax liability			2,514,189				1,592,145
Deferred revenue			320,431				265,493
Due to affiliate			131,706				39,564
Offering costs payable			-				13,674
Total liabilities		$	604,707,499			$	594,289,568
Commitments and Contingencies (See note 8)
NET ASSETS
Common stock, par value $.001 per share, 100,000,000 common shares authorized, 57,738,526 and 58,733,284 common shares issued and outstanding, respectively		$	57,739			$	58,733
Capital in excess of par value			729,937,990				739,443,065
Accumulated undistributed net investment income			20,384,776				21,673,794
Accumulated net realized gain/(loss) from investments			(18,627,618	)			-
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes			(66,233,958	)			(31,318,711	)
Total net assets			665,518,929				729,856,881
Total liabilities and net assets		$	1,270,226,428			$	1,324,146,449
NET ASSET VALUE PER SHARE		$	11.53			$	12.43

 

See accompanying notes to consolidated financial statements.

 

  

Medley Capital Corporation 

Consolidated Statements of Operations

 

 

		For the three months ended June 30								For the nine months ended June 30
		2015				2014				2015				2014
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
INVESTMENT INCOME
Interest from investments
Non-controlled/Non-affiliated investments:
Cash		$	30,443,298			$	26,230,726			$	94,065,811			$	71,271,822
Payment-in-kind			2,269,865				2,803,552				5,904,729				8,055,270
Affiliated investments:
Cash			166,750				284,509				971,902				838,381
Payment-in-kind			-				117,723				190,446				348,759
Controlled investments:
Cash			398,725				-				1,193,301				-
Payment-in-kind			491,349				-				1,442,480				-
Total interest income			33,769,987				29,436,510				103,768,669				80,514,232
Dividend income, net of provisional taxes (143,883 and 0, respectively)			107,434				-				107,434				-
Interest from cash and cash equivalents			1,387				1,649				4,359				5,957
Fee income (See note 9)			2,084,975				8,633,572				8,708,173				20,617,806
Total investment income			35,963,783				38,071,731				112,588,635				101,137,995
EXPENSES
Base management fees (See note 6)			5,545,985				4,593,080				16,876,189				12,336,267
Incentive fees (See note 6)			4,310,026				5,173,449				13,845,784				13,569,971
Interest and financing expenses			6,160,394				5,348,298				18,765,192				14,502,205
Administrator expenses (See note 6)			1,066,119				858,591				3,186,267				2,371,153
Professional fees			904,659				710,628				2,276,691				1,867,640
Directors fees			134,520				194,304				432,895				535,554
Insurance			140,351				150,214				425,996				426,499
General and administrative			461,625				349,373				1,396,484				1,248,823
Total expenses			18,723,679				17,377,937				57,205,498				46,858,112
NET INVESTMENT INCOME			17,240,104				20,693,794				55,383,137				54,279,883
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from investments			(9,010,451	)			813,852				(18,627,618	)			886,904
Net unrealized appreciation/(depreciation) on investments			427,082				(4,820,079	)			(34,137,086	)			(11,580,576	)
Net unrealized appreciation/(depreciation) on participations			-				(29,380	)			-				124,315
Change in provision for deferred taxes on unrealized gain on investments			(283,706	)			(69,687	)			(778,161	)			(386,545	)
Net gain/(loss) on investments			(8,867,075	)			(4,105,294	)			(53,542,865	)			(10,955,902	)
NET INCREASE/DECREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	8,373,029			$	16,588,500			$	1,840,272			$	43,323,981
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE		$	0.14			$	0.33			$	0.03			$	0.97
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE		$	0.30			$	0.41			$	0.95			$	1.21
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)			57,859,274				50,503,492				58,363,128				44,836,152
DIVIDENDS DECLARED PER COMMON SHARE		$	0.30			$	0.37			$	0.97			$	1.11

  

 

See accompanying notes to consolidated financial statements.

 

  

Medley Capital Corporation 

Consolidated Statements of Changes in Net Assets

 

		For the nine months ended June 30
		2015				2014
		(unaudited)				(unaudited)
INCREASE FROM OPERATIONS:
Net investment income		$	55,383,137			$	54,279,883
Net realized gain/(loss) from investments			(18,627,618	)			886,904
Net unrealized appreciation/(depreciation) on investments			(34,137,086	)			(11,580,576	)
Net unrealized appreciation/(depreciation) on participations			-				124,315
Provision for deferred taxes on unrealized gain on investments			(778,161	)			(386,545	)
Net increase/(decrease) in net assets from operations			1,840,272				43,323,981
SHAREHOLDER DISTRIBUTIONS:
Distributions declared from net investment income			(56,672,155	)			(51,295,478	)
Net decrease in net assets from shareholder distributions			(56,672,155	)			(51,295,478	)
CAPITAL SHARE TRANSACTIONS:
Issuance of common stock, net of underwriting costs (0 and 12,000,000 shares, respectively)			-				157,976,250
Repurchase of common stock under stock repurchase program  (994,758 and 0 shares, respectively)			(9,506,069	)			-
Offering costs			-				(300,133	)
Issuance of common stock under dividend reinvestment plan (0 and 130,808 shares, respectively)			-				1,693,167
Net increase in net assets from common share transactions			(9,506,069	)			159,369,284
Total increase/(decrease) in net assets			(64,337,952	)			151,397,787
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  $20,384,776 and $15,169,028, respectively		$	665,518,929			$	661,232,242
Net asset value per common share		$	11.53			$	12.65
Common shares outstanding at end of period			57,738,526				52,283,712

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation 

Consolidated Statements of Cash Flows 

 

		For the nine months ended June 30
		2015				2014
		(unaudited)				(unaudited)
Cash flows from operating activities
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS		$	1,840,272			$	43,323,981
ADJUSTMENTS TO RECONCILE NET INCREASE/DECREASE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES:
Investment increases due to payment-in-kind interest			(7,334,583	)			(8,397,574	)
Net amortization of premium/(discount) on investments			(1,349,196	)			(490,301	)
Amortization of deferred financing costs			1,807,210				1,592,209
Net realized (gain)/loss from investments			18,627,618				(886,904	)
Net deferred income taxes			922,044				386,545
Net unrealized (appreciation)/depreciation on investments			34,137,086				11,580,576
Net unrealized (appreciation)/depreciation on participations			-				(124,315	)
Proceeds from sale and settlements of investments			223,292,550				278,008,120
Purchases, originations and participations			(226,018,818	)			(573,502,473	)
(Increase)/decrease in operating assets:
Interest receivable			1,284,656				(3,915,303	)
Fees receivable			455,621				(195,000	)
Other assets			(150,359	)			(34,884	)
Receivable for dispositions and investments sold			10,007,268				(15,175,048	)
Increase/(decrease) in operating liabilities:
Payable for investments purchased, originated and participated			(54,995,000	)			15,842,912
Management and incentive fees payable, net			(588,800	)			2,866,875
Accounts payable and accrued expenses			(113,682	)			912,244
Interest and fees payable			(193,689	)			191,494
Administrator expenses payable			53,652				157,383
Deferred revenue			54,938				55,756
Due to affiliate			92,142				(82,083	)
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES			1,830,930				(247,885,790	)
Cash flows from financing activities
Proceeds from issuance of common stock, net of underwriting costs			-				159,669,417
Repurchase of common stock under stock repurchase program			(9,506,069	)			-
Offering costs paid			(98,414	)			(482,025	)
Borrowings on debt			165,500,000				378,300,000
Paydowns on debt			(100,300,000	)			(225,717,114	)
Financing costs paid			(1,245,929	)			(4,033,465	)
Payments of cash dividends			(56,672,155	)			(51,295,478	)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES			(2,322,567	)			256,441,335
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS			(491,637	)			8,555,545
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			36,731,488				8,557,899
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	36,239,851			$	17,113,444
Supplemental Information:
Interest paid during the period		$	17,094,090			$	12,660,917
Supplemental non-cash information
Payment-in-kind interest income		$	7,537,655			$	8,404,029
Net amortization of premium/(discount) on investments		$	1,349,196			$	490,301
Amortization of deferred financing costs		$	(1,807,210	)		$	(1,592,209	)
Issuance of common stock in connection with dividend reinvestment plan		$	-			$	1,693,167

 

See accompanying notes to consolidated financial statements.

 

  

Medley Capital Corporation 

Consolidated Schedule of Investments 

June 30, 2015

(Unaudited)

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
Non-Controlled/ Non-Affiliated Investments:
AAR Intermediate Holdings LLC(11)		Energy:  Oil & Gas		Senior Secured First Lien Term Loan  (LIBOR + 12.00%, 1.00% LIBOR Floor)(18)		3/30/2019			32,134,161				30,380,947				29,697,093				4.5	%
				Warrants to purchase 1.80% of outstanding company equity.		3/30/2019			-				2,274,480				236,717				0.0	%
									32,134,161				32,655,427				29,933,810
Accupac, Inc.		Containers, Packaging & Glass		Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor) (17)		3/20/2020			33,000,000				33,000,000				33,000,000				5.0	%
									33,000,000				33,000,000				33,000,000
AESC Holding Corp, Inc.		Retail		Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)		5/27/2019			20,000,000				20,000,000				20,200,000				3.0	%
									20,000,000				20,000,000				20,200,000

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
Albertville Quality Foods, Inc. (11)		Beverages & Food		Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap) (17)		10/31/2018			17,452,830				17,452,830				17,801,887				2.7	%
									17,452,830				17,452,830				17,801,887
AM3 Pinnacle Corporation		Media:  Broadcasting & Subscription		Senior Secured First Lien Term Loan (10.00%)		10/22/2018			7,920,601				7,920,601				7,047,672				1.1	%
									7,920,601				7,920,601				7,047,672
Aurora Flight Sciences Corporation		Aerospace & Defense		Senior Secured Second Lien Term Loan (11.25% Cash, 2.00% PIK)		3/16/2016			16,377,694				16,377,694				16,377,694				2.5	%
									16,377,694				16,377,694				16,377,694
Autosplice, Inc. (7)(9)		High Tech Industries		Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.00% LIBOR Floor) (18)		6/30/2019			14,817,844				14,817,844				15,139,120				2.3	%
									14,817,844				14,817,844				15,139,120
Backcountry.com, Inc.		Retail		Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor) (18)		6/30/2020			9,583,333				9,583,333				9,583,333				1.4	%
									9,583,333				9,583,333				9,583,333
BayDelta Maritime LLC		Transportation: Cargo		Warrants to purchase 10% of the outstanding equity		6/30/2016			-				25,000				490,533				0.1	%
									-				25,000				490,533
Be Green Packaging, LLC (7)(9)		Containers, Packaging & Glass		Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor )(18)		12/13/2018			5,000,000				5,000,000				4,890,524				0.7	%
				Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor) (18)		12/13/2018			3,416,667				3,416,667				3,347,024				0.5	%
				Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor) (18)		12/13/2018			354,167				354,167				338,784				0.0	%
				1.563% Partnership Interest in RCAF VI CIV XXIII, L.P.		12/13/2018			-				416,250				298,035				0.0	%
									8,770,834				9,187,084				8,874,367
Black Angus Steakhouses, LLC (7)(9)		Hotel, Gaming & Leisure		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)		4/24/2020			8,162,946				8,162,946				8,162,946				1.2	%
				Senior Secured First Lien Delayed Draw (LIBOR + 9.00%, 1.00% LIBOR Floor) (6)		4/24/2020			-				-				-				0.0	%
				Revolver (LIBOR + 9.00%, 1.00% LIBOR Floor)		4/24/2020			-				-				-				0.0	%
									8,162,946				8,162,946				8,162,946

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
Brantley Transportation LLC (11)		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (12.00%)		8/2/2017			9,000,000				9,112,550				8,780,964				1.3	%
									9,000,000				9,112,550				8,780,964
California Products Corporation		Chemicals, Plastics & Rubber		Senior Secured Second Lien Term Loan (13.00%)		5/27/2019			13,750,000				13,750,000				14,025,000				2.1	%
									13,750,000				13,750,000				14,025,000
Calloway Laboratories, Inc. (10)(19)		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (17.00% PIK)		9/30/2015			37,235,848				29,573,477				11,325,207				1.7	%
				Warrants to purchase 15.00% of the outstanding equity		9/30/2015			-				68,433				-				0.0	%
									37,235,848				29,641,910				11,325,207
Capstone Nutrition		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(18)		4/28/2019			20,033,903				20,033,903				20,167,329				3.0	%
				384.62 Units of Common Stock (12)		4/28/2019			-				400,000				595,938				0.1	%
									20,033,903				20,433,903				20,763,267
CP OPCO LLC		Services:  Consumer		Senior Secured First Lien Term Loan (LIBOR + 6.75% Cash, 1.00% LIBOR Floor)(18)		9/30/2020			20,000,000				20,000,000				19,872,918				3.0	%
									20,000,000				20,000,000				19,872,918
ContMid Intermediate Inc. (11)		Automotive		Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)		10/25/2019			15,000,000				15,000,000				14,941,941				2.2	%
									15,000,000				15,000,000				14,941,941
ConvergeOne Holdings Corporation		Telecommunications		Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor) (18)		6/17/2021			12,500,000				12,388,333				12,305,875				1.8	%
									12,500,000				12,388,333				12,305,875

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
Crow Precision Components LLC		Aerospace & Defense		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (17)		9/30/2019			14,000,000				14,000,000				14,000,000				2.1	%
				250 units of outstanding equity in Wingman Holdings, Inc.		9/30/2019			-				500,000				500,000				0.1	%
									14,000,000				14,500,000				14,500,000
DHISCO Electronic Distribution, Inc. (7)(11)		Hotel, Gaming & Leisure		Senior Secured First Lien Term Loan A (LIBOR + 9.00%, 1.50% LIBOR Floor)		11/10/2019			31,238,095				31,238,095				31,058,164				4.7	%
				Senior Secured First Lien Term Loan B (LIBOR + 10.50% PIK)		2/10/2018			6,114,342				6,114,342				6,083,821				0.9	%
				Revolving Credit Facility (23)		5/10/2017			-				-				-				0.0	%
				Equity - 1,230,769 Units (21)		2/10/2018			-				1,230,769				1,919,375				0.3	%
									37,352,437				38,583,206				39,061,360
DLR Restaurants LLC (11)		Hotel, Gaming & Leisure		Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)		4/18/2018			23,364,723				23,364,723				23,274,301				3.5	%
				Unsecured Debt (12.00% Cash, 4.00% PIK)		4/18/2018			273,319				273,319				272,614				0.0	%
									23,638,042				23,638,042				23,546,915
DreamFinders Homes LLC (7)(9)		Construction & Building		Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)		10/1/2018			13,851,436				13,723,323				14,327,586				2.1	%
				5,000 units of outstanding equity		10/1/2018			-				180,000				2,919,061				0.4	%
									13,851,436				13,903,323				17,246,647
Dynamic Energy Services International LLC		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (17)		3/6/2018			17,812,500				17,812,500				17,637,581				2.7	%
									17,812,500				17,812,500				17,637,581
Essex Crane Rental Corp. (11)		Construction & Building		Senior Secured First Lien Term Loan (LIBOR + 10.50% Cash, 1.00% LIBOR Floor) (18)		5/13/2019			20,000,000				20,000,000				19,781,200				3.0	%
									20,000,000				20,000,000				19,781,200
FKI Security Group LLC (11)		Capital Equipment		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (18)		3/30/2020			15,000,000				15,000,000				15,056,550				2.3	%
									15,000,000				15,000,000				15,056,550
Footprint Acquisition LLC		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash) (17)		2/27/2020			5,250,102				5,250,102				5,268,592				0.8	%
				Preferred Equity  (8.75% PIK)		2/27/2020			5,040,104				5,040,104				5,040,356				0.8	%
				150.0 units of Common Stock (22)		2/27/2020			-				-				-
									10,290,206				10,290,206				10,308,948

 

  

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
Freedom Powersports LLC (7)(9)		Automotive		Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor) (18)		9/26/2019			13,200,000				13,200,000				13,333,362				2.0	%
				Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash, 1.50% LIBOR Floor) (6)		9/26/2019			-				-				18,186				0.0	%
									13,200,000				13,200,000				13,351,548
Harrison Gypsum LLC (11)		Metals & Mining		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor) (17)		12/21/2017			30,874,629				30,874,629				30,580,394				4.6	%
									30,874,629				30,874,629				30,580,394
Heligear Acquisition Co.		Aerospace & Defense		Senior Secured First Lien Note (10.25% Cash)		10/15/2019			20,000,000				20,000,000				20,026,062				3.0	%
									20,000,000				20,000,000				20,026,062
Help/Systems LLC		Services:  Business		Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (17)		6/28/2020			15,000,000				15,000,000				15,150,000				2.3	%
									15,000,000				15,000,000				15,150,000
JD Norman Industries, Inc.		Automotive		Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash) (17)		3/6/2019			22,800,000				22,800,000				22,878,395				3.4	%
									22,800,000				22,800,000				22,878,395
Jordan Reses Supply Company LLC		Healthcare & Pharmaceuticals		Senior Secured Second Lien Term Loan (LIBOR + 11.00%, 1.00% LIBOR Floor)		4/24/2020			20,000,000				20,000,000				20,364,745				3.1	%
									20,000,000				20,000,000				20,364,745
Lighting Science Group Corporation		Containers, Packaging & Glass		Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK) (18)		2/19/2019			15,650,491				14,893,195				14,900,363				2.2	%
				Warrants to purchase 2.36% of the outstanding equity		2/19/2019			-				955,680				413,786				0.1	%
									15,650,491				15,848,875				15,314,149
Lucky Strike Entertainment, L.L.C.		Hotel, Gaming & Leisure		Senior Secured Second Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 2.00% PIK) (18)		12/24/2019			10,254,472				10,254,472				10,446,128				1.6	%
									10,254,472				10,254,472				10,446,128
Lydell Jewelry Design Studio LLC (11)		Consumer goods:  Non-durable		Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 7.5% PIK, 1.50% LIBOR Floor) (17)		9/13/2018			14,163,187				13,970,592				11,663,101				1.8	%
				Warrants to purchase 13.3% of the outstanding membership units		9/13/2018			-				-				-				0.0	%
									14,163,187				13,970,592				11,663,101

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
LVI Services, Inc.		Construction & Building		Unsecured Debt (11.00% Cash)		10/24/2019			23,094,139				23,094,140				23,004,072				3.4	%
									23,094,139				23,094,140				23,004,072
Marine Accessories Corporation		Consumer goods:  Non-durable		Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 1.00% PIK) (17)		11/26/2018			10,003,208				10,003,208				10,303,304				1.5	%
									10,003,208				10,003,208				10,303,304
Merchant Cash and Capital LLC (7)(9)		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Delayed Draw (LIBOR + 8.00% Cash, 3.00% LIBOR Floor) (17)		3/4/2016			15,983,333				15,983,333				16,089,033				2.4	%
				Senior Secured Second Lien Term Loan (12.00% Cash)		8/19/2016			15,000,000				15,000,000				15,000,000				2.3	%
									30,983,333				30,983,333				31,089,033
Meridian Behavioral Health LLC (7)(9)		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan A (LIBOR + 11.50%, 2.50% LIBOR Floor) (18)		11/14/2016			10,289,141				10,090,186				10,343,262				1.6	%
				Senior Secured First Lien Term Loan B (LIBOR + 11.50%, 2.50% LIBOR Floor) (18)		11/14/2016			6,600,000				6,600,000				6,637,346				1.0	%
				Warrants to purchase 8% of the outstanding equity		11/14/2016			-				536,296				2,753,297				0.4	%
									16,889,141				17,226,482				19,733,905
Miratech Intermediate Holdings, Inc. (7)(9)(11)		Automotive		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (17)		5/9/2019			14,769,231				14,769,231				14,554,338				2.2	%
				Senior Secured First Lien Delayed Draw (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (6)		5/9/2019			-				-				(214,892	)			0.0	%
									14,769,231				14,769,231				14,339,446
Modern VideoFilm, Inc. (10)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor, 3.00% PIK) (17)		9/25/2017			15,850,822				14,642,795				1,036,424				0.2	%
				Warrants to purchase 5.6% of the outstanding equity		9/25/2017			-				339,573				-				0.0	%
									15,850,822				14,982,368				1,036,424
Momentum Telecom, Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(17)		3/10/2019			9,203,153				9,203,153				9,232,235				1.4	%
									9,203,153				9,203,153				9,232,235
Nation Safe Drivers Holdings, Inc.		Banking, Finance, Insurance & Real Estate		Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor) (18)		9/29/2020			35,278,846				35,278,846				35,246,339				5.3	%
									35,278,846				35,278,846				35,246,339
Nielsen & Bainbridge LLC		Consumer goods:  Durable		Senior Secured Second Lien Term Loan (LIBOR + 9.25% Cash, 1.00% LIBOR Floor) (17)		8/15/2021			25,000,000				25,000,000				24,979,084				3.8	%
									25,000,000				25,000,000				24,979,084

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
Northern Lights MIDCO LLC		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.50% LIBOR Floor)		11/21/2019			4,582,500				4,582,500				4,660,015				0.7	%
									4,582,500				4,582,500				4,660,015
Omnivere LLC		Services:  Business		Senior Secured First Lien Term Loan A (LIBOR + 12.00% Cash, 1.00% PIK) (18)		5/5/2019			26,857,060				26,133,940				22,218,012				3.3	%
				Senior Secured First Lien Term Loan C (LIBOR + 12.00% Cash, 1.00% PIK) (18)		5/5/2019			3,200,370				3,200,370				2,647,567				0.4	%
				Warrants to purchase outstanding equity (20)		5/5/2019			-				872,698				-				0.0	%
									30,057,430				30,207,008				24,865,579
Oxford Mining Company, LLC (7)(9)		Metals & Mining		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)		12/31/2018			11,920,264				11,920,264				11,825,775				1.8	%
									11,920,264				11,920,264				11,825,775
The Plastics Group, Inc.		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		2/28/2019			21,319,761				21,319,761				21,212,523				3.2	%
									21,319,761				21,319,761				21,212,523
Prestige Industries LLC		Services:  Business		Senior Secured Second Lien Term Loan (18.00% PIK)		11/1/2017			7,581,811				7,520,362				6,859,492				1.0	%
				Warrants to purchase 0.63% of the outstanding common units		11/1/2017			-				151,855				27,671				0.0	%
									7,581,811				7,672,217				6,887,163
Prince Mineral Holding Corp.(8)		Metals & Mining		Senior Secured First Lien Note (12.00%)		12/15/2019			6,800,000				6,742,088				6,375,000				1.0	%
									6,800,000				6,742,088				6,375,000
RCS Management Corporation & Specialized Medical Services, Inc. (7)		Healthcare & Pharmaceuticals		Senior Secured Second Lien Term Loan (LIBOR + 11.00% Cash, 1.50% LIBOR Floor, 0.50% PIK) (17)		2/29/2016			28,709,590				28,709,590				28,709,590				4.3	%
									28,709,590				28,709,590				28,709,590
Red Skye Wireless LLC (7)(9)		Retail		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (17)		6/27/2018			26,115,799				26,115,799				26,319,848				4.0	%
									26,115,799				26,115,799				26,319,848
Reddy Ice Corporation		Beverages & Food		Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor) (17)		11/1/2019			17,000,000				17,000,000				15,895,510				2.4	%
									17,000,000				17,000,000				15,895,510
Response Team Holdings, LLC		Construction & Building		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 2.00% LIBOR Floor) (17)		3/28/2019			25,472,698				25,472,698				25,825,240				3.9	%
				Preferred Equity (12.00% PIK)		3/28/2019			5,384,608				5,035,902				5,328,231				0.8	%
				Warrants to purchase 6.17% of the outstanding common units		3/28/2019			-				429,012				1,717,905				0.3	%
									30,857,306				30,937,612				32,871,376
Safeworks LLC(11)		Capital Equipment		Unsecured Debt (12.00% Cash)		1/31/2020			15,000,000				15,000,000				15,084,913				2.3	%
									15,000,000				15,000,000				15,084,913

 

  

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
Sendero Drilling Company LLC (9)		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash) (17)		3/18/2019			13,270,441				12,636,877				13,247,217				2.0	%
				Warrants to purchase 5.52% of the outstanding common units		3/18/2019			-				793,523				3,874,430				0.6	%
									13,270,441				13,430,400				17,121,647
Seotowncenter, Inc. (11)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (18)		9/11/2019			27,500,000				27,500,000				27,684,804				4.2	%
				3,249.697 shares of Common Stock (13)		9/11/2019			-				500,000				1,027,132				0.2	%
									27,500,000				28,000,000				28,711,936
Stancor, Inc.		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 0.75% LIBOR Floor) (17)		8/19/2019			7,000,000				7,000,000				6,952,140				1.0	%
				263,814.43 Class A Units (14)		8/19/2019			-				250,000				258,977				0.0	%
									7,000,000				7,250,000				7,211,117
T. Residential Holdings LLC		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Term Loan (12.00%)		3/28/2019			19,750,000				19,750,000				19,750,000				3.0	%
									19,750,000				19,750,000				19,750,000
Taylored Freight Services LLC		Services:  Business		Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 2.00% PIK, 1.50% LIBOR Floor) (18)		11/1/2017			15,252,458				15,252,458				14,107,456				2.1	%
									15,252,458				15,252,458				14,107,456
Tempel Steel Company (8)		Metals & Mining		Senior Secured First Lien Note (12.00%)		8/15/2016			11,000,000				10,940,383				10,436,250				1.5	%
									11,000,000				10,940,383				10,436,250
Tenere Acquisition Corp. (7)(9)		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		12/15/2017			11,302,605				11,302,605				11,568,657				1.7	%
									11,302,605				11,302,605				11,568,657

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
Transtelco Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor) (17)		11/19/2017			18,912,000				18,912,000				18,893,844				2.8	%
									18,912,000				18,912,000				18,893,844
Untangle, Inc.		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash) (17)		4/18/2019			9,590,000				9,590,000				9,544,543				1.4	%
									9,590,000				9,590,000				9,544,543
Velocity Pooling Vehicle LLC		Automotive		Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor) (17)		5/14/2022			24,000,000				20,931,789				20,667,381				3.1	%
									24,000,000				20,931,789				20,667,381
Water Capital USA, Inc. (10)		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Term Loan (7.00% Cash, 7.00% PIK)		1/3/2015			28,436,377				27,298,353				-				0.0	%
									28,436,377				27,298,353				-
Watermill-QMC Midco, Inc.		Automotive		Senior Secured First Lien Term Loan (12.00% Cash, 1.00% PIK)		6/30/2020			15,506,956				15,506,956				15,506,956				2.3	%
				1.3% Partnership Interest in Watermill-QMC Midco Inc.		6/30/2020			-				295,362				295,362				0.0	%
									15,506,956				15,802,318				15,802,318
Wheels Up Partners LLC (11)		Aerospace & Defense		Senior Secured First Lien Delayed Draw (LIBOR + 8.55% Cash, 1.00% LIBOR Floor) (18)		10/15/2021			18,589,157				18,589,157				19,017,452				2.9	%
									18,589,157				18,589,157				19,017,452
Window Products, Inc.		Construction & Building		Senior Secured Second Lien Term Loan (LIBOR + 10.75% Cash, 1.00% LIBOR Floor) (18)		12/27/2019			14,000,000				14,000,000				14,140,000				2.1	%
									14,000,000				14,000,000				14,140,000
Subtotal Non-Controlled / Non-Affiliated Investments								$	1,224,753,722			$	1,216,982,363			$	1,156,183,992
Control Investments:(5)
United Road Towing Inc.		Services:  Business		Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash) (18)		2/21/2020			17,000,000				17,000,000				16,949,283				2.5	%
				Preferred Equity Class C (8.00% PIK)		2/21/2020			18,802,789				17,466,376				18,861,642				2.8	%
				Preferred Equity  Class C-1 (8.00% PIK)		2/21/2020			933,305				933,305				55,663				0.0	%
				Preferred Equity  Class A-2 (8.00% PIK)		2/21/2020			4,898,869				4,567,146				1,422,441				0.2	%
				65,809.73 Class B Common Units (15)		2/21/2020			-				1,098,096				710,613				0.1	%
									41,634,963				41,064,923				37,999,642
Subtotal Control Investments								$	41,634,963			$	41,064,923			$	37,999,642

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost (3)				Fair Value				% of  Net Assets (4)
Affiliated Investments:
US Multifamily, LLC		Banking, Finance, Insurance & 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 (16)		9/10/2019			-				3,330,000				3,330,000				0.5	%
									6,670,000				10,000,000				10,000,000
Subtotal Affiliated Investments								$	6,670,000			$	10,000,000			$	10,000,000
Total Investments, June 30, 2015								$	1,273,058,685			$	1,268,047,286			$	1,204,183,634				180.9	%

  

(1) All of our investments are domiciled in the United States. Certain investments also have international operations.

(2) Par amount includes accumulated PIK interest and is net of repayments.

(3) Gross unrealized appreciation, gross unrealized depreciation, and net depreciation for federal income tax purposes totaled $36.4 million, $78.9 million and $42.5 million, respectively. The tax cost of investments is $1,246.7 million.

(4) Percentage is based on net assets of $665,518,929 as of June 30, 2015.

(5) 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.

(6) The entire commitment was unfunded at June 30, 2015. As such, no interest is being earned on this investment.

(7) The investment has an unfunded commitment as of June 30, 2015 (See note 8).

(8) Securities are exempt from registration under Rule 144a of the Securities Act of 1933. These securities represent a fair value of $16.8 million and 2.5% of net assets as of June 30, 2015 and are considered restricted.

(9) Includes an analysis of the value of any unfunded loan commitments.

(10) The investment was on non-accrual status as of June 30, 2015.

(11) A portion of this investment was sold via a participation agreement (See note 3).

(12) 384.62 Units represents 1.55% ownership of Cornerstone Research & Development Inc.

(13) 3,249.697 shares of Common Stock represents 2.917% ownership of Boostability Holdings, Inc.

(14) 263,814.43 Class A Units represents 0.882% ownership of Stancor, Inc.

(15) 65,809.73 Class B Common Units Represents 65.8% ownership of United Road Towing, Inc.

(16) 33,300 Units represents 18.167% ownership of US Multifamily, LLC.

(17) The interest rate on these loans is subject to a base rate plus 1 Month LIBOR, which at June 30, 2015 was 0.18%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 1 Month LIBOR rate at June 30, 2015, the prevailing rate in effect at June 30, 2015 was the base rate plus the LIBOR Floor.

(18) The interest rate on these loans is subject to a base rate plus 3 Month LIBOR, which at June 30, 2015 was 0.28%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 3 Month LIBOR rate at June 30, 2015, the prevailing rate in effect at June 30, 2015 was the base rate plus the LIBOR Floor.

(19) Investment consists of senior secured first lien term loan A (par and fair value of $9,384,823 and $7,977,098, respectively), senior secured first lien term loan B (par and fair value of $22,122,646 and $884,906, respectively) and senior secured first lien term loan - Willow Street Medical Laboratory LLC (par and fair value of $5,728,379 and $2,463,203, respectively).

(20) Warrants to purchase 12.50% of Omnivere Holding Company, LLC and 38.89% of Omnivere, LLC.

(21) 1,230,769 Units represents 4.17% ownership of Pegasus Solutions, Inc.

(22) 150 Units represents 15.0% of Footprint Holding Company, Inc.

(23) The investment earns 0.50% commitment fee on all unused commitment. At June 30, 2015, there was $3,047,619.05 of unused commitment.

 

See accompanying notes to consolidated financial statements.

 

  

Medley Capital Corporation

 

Consolidated Schedule of Investments

 

September 30, 2014

 

Company (1)		Industry (24)		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)		Energy:  Oil & 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 & 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.		Services:  Business		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)		Beverages & Food		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		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

 

 

Company (1)		Industry (24)		Type of Investment		Maturity		Par Amount (2)				Cost (18)				Fair Value				% of  Net Assets (3)
Alora Pharmaceuticals LLC (11)		Healthcare & Pharmaceuticals		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)		Media: Broadcasting & Subscription		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.		Services:  Business		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		Automotive		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)		High Tech Industries		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		Transportation:  Cargo		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 & 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		12/13/2018			-				416,250				287,947				0.0	%
									7,145,834				7,562,084				7,289,505

 

 

Company (1)		Industry (24)		Type of Investment		Maturity		Par Amount (2)				Cost (18)				Fair Value				% of  Net Assets (3)
Brantley Transportation LLC (11)		Energy:  Oil & 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 & Pharmaceuticals		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		Services: Consumer		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)		Automotive		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		Telecommunications		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 & Pharmaceuticals		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)		Consumer goods:  Non-durable		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

 

 

Company (1)		Industry (24)		Type of Investment		Maturity		Par Amount (2)				Cost (18)				Fair Value				% of  Net Assets (3)
DLR Restaurants LLC (9)(11)(12)		Hotels, Gaming & Leisure		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)		Construction & Building		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		Energy:  Oil & 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)		Construction & Building		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)		Services:  Business		Senior Secured First Lien 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		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)		Automotive		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)		Consumer goods:  Non-durable		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

 

 

Company (1)		Industry (24)		Type of Investment		Maturity		Par Amount (2)				Cost (18)				Fair Value				% of  Net Assets (3)
Harrison Gypsum LLC (11)		Metals & Mining		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.		Banking, Finance, Insurance & Real Estate		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		Services:  Business		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		Services:  Business		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)		Services: Consumer		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)		Services: Consumer		Senior Secured First Lien 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.		Metals & Mining		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.		Consumer goods:  Durable		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

 

 

Company (1)

Industry (24)

Type of Investment

Maturity

Par Amount (2)

Cost (18)

Fair Value

% of  Net Assets (3)

Lighting Science Group Corporation

Containers, Packaging & Glass

Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK) (20)

2/19/2019

15,415,114

14,544,245

14,985,957