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, 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:

 

Title of Each Class		Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share		The New York Stock Exchange
7.125% Notes due 2019		The New York Stock Exchange
6.500% Notes due 2021		The New York Stock Exchange
6.125% Notes due 2023		The New York Stock Exchange

 

Securities registered pursuant to Section 12(g) of the Act: None

 

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 5, 2016 the Registrant had 55,845,703 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, 2015 (unaudited) and September 30, 2015	F-1
		Consolidated Statements of Operations for the three months ended December 31, 2015 and 2014 (unaudited)	F-2
		Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2015 and 2014 (unaudited)	F-3
		Consolidated Statements of Cash Flows for the three months ended December 31, 2015 and 2014 (unaudited)	F-4
		Consolidated Schedules of Investments as of December 31, 2015 (unaudited) and September 30, 2015	F-5
		Notes to Consolidated Financial Statements (unaudited)	F-24
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		19
Item 3.	Defaults Upon Senior Securities		19
Item 4.	Other Information		19
Item 5.	Exhibits		19
SIGNATURES			23

 

 

Medley Capital Corporation 

 

Consolidated Statements of Assets and Liabilities

 

		As of
		December 31, 2015				September 30, 2015
		(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $1,098,861,920 and $1,175,785,384, respectively)		$	1,012,558,424			$	1,131,893,787
Controlled investments (amortized cost of $122,734,732 and $86,755,896 respectively)			92,565,318				74,198,202
Affiliated investments (amortized cost of $10,000,000 and $10,000,000, respectively)			10,000,000				10,000,000
Total investments at fair value			1,115,123,742				1,216,091,989
Cash and cash equivalents			24,113,304				15,714,256
Deferred financing costs, net			15,258,251				13,127,630
Interest receivable			8,718,789				9,542,547
Fees receivable			1,976,108				1,389,634
Receivable for dispositions and investments sold			1,143,215				578,868
Other assets			436,318				556,285
Deferred offering costs			327,053				208,477
Total assets		$	1,167,096,780			$	1,257,209,686
LIABILITIES
Revolving credit facility payable		$	89,200,000			$	192,700,000
Term loan payable			174,000,000				174,000,000
Notes payable			174,262,825				103,500,000
SBA debentures payable			150,000,000				150,000,000
Management and incentive fees payable (See note 6)			9,263,227				9,962,534
Interest and fees payable			2,591,837				1,313,931
Deferred tax liability			2,021,973				1,797,356
Accounts payable and accrued expenses			1,475,599				2,503,442
Administrator expenses payable (See note 6)			917,681				1,000,846
Deferred revenue			430,410				402,029
Due to affiliate			218,230				109,164
Total liabilities		$	604,381,782			$	637,289,302
Commitments (See note 8)
NET ASSETS
Common stock, par value $0.001 per share, 100,000,000 common shares authorized, 56,193,803 and 56,337,152 common shares issued and outstanding, respectively		$	56,194			$	56,337
Capital in excess of par value			717,140,810				718,240,597
Accumulated undistributed net investment income			19,116,562				20,351,831
Accumulated net realized gain/(loss) from investments			(55,247,568	)			(60,625,616	)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes			(118,351,000	)			(58,102,765	)
Total net assets			562,714,998				619,920,384
Total liabilities and net assets		$	1,167,096,780			$	1,257,209,686
NET ASSET VALUE PER SHARE		$	10.01			$	11.00

 

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Statements of Operations

 

		For the three months ended December 31
		2015				2014
		(unaudited)				(unaudited)
INVESTMENT INCOME:
Interest from investments
Non-controlled/non-affiliated investments:
Cash		$	28,126,021			$	32,440,714
Payment-in-kind			1,222,112				1,850,728
Affiliated investments:
Cash			166,750				464,552
Payment-in-kind			-				122,079
Controlled investments:
Cash			855,626				401,153
Payment-in-kind			995,956				484,203
Total interest income			31,366,465				35,763,429
Interest from cash and cash equivalents			2,235				1,645
Fee income (See note 9)			3,058,627				4,083,857
Total investment income			34,427,327				39,848,931
EXPENSES:
Base management fees (See note 6)			5,346,758				5,784,178
Incentive fees (See note 6)			3,916,469				5,097,508
Interest and financing expenses			6,970,085				6,356,502
Administrator expenses (See note 6)			916,377				1,021,811
General and administrative			709,992				349,848
Professional fees			632,521				532,692
Insurance			135,409				142,823
Directors fees			133,841				173,536
Total expenses			18,761,452				19,458,898
NET INVESTMENT INCOME			15,665,875				20,390,033
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from investments			5,378,048				(216,584	)
Net unrealized appreciation/(depreciation) on investments			(60,023,619	)			(38,700,337	)
Change in provision for deferred taxes on unrealized gain on investments			(224,616	)			210,950
Net gain/(loss) on investments			(54,870,187	)			(38,705,971	)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		$	(39,204,312	)		$	(18,315,938	)
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE		$	(0.70	)		$	(0.31	)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE		$	0.28			$	0.35
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)			56,300,067				58,733,284
DIVIDENDS DECLARED PER COMMON SHARE		$	0.30			$	0.37

 

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Statements of Changes in Net Assets

 

 

		For the three months ended December 31
		2015				2014
		(unaudited)				(unaudited)
OPERATIONS:
Net investment income		$	15,665,875			$	20,390,033
Net realized gain/(loss) from investments			5,378,048				(216,584	)
Net unrealized appreciation/(depreciation) on investments			(60,023,619	)			(38,700,337	)
Change in provision for deferred taxes on unrealized gain on investments			(224,616	)			210,950
Net increase/(decrease) in net assets from operations			(39,204,312	)			(18,315,938	)
SHAREHOLDER DISTRIBUTIONS:
Distributions from net investment income			(16,901,142	)			(21,731,314	)
Net decrease in net assets from shareholder distributions			(16,901,142	)			(21,731,314	)
CAPITAL SHARE TRANSACTIONS:
Repurchase of common stock under stock repurchase program  (143,349 and 0 shares, respectively)			(1,099,932	)			-
Net increase/(decrease) in net assets from common share transactions			(1,099,932	)			-
Total increase/(decrease) in net assets			(57,205,386	)			(40,047,252	)
Net assets at beginning of period			619,920,384				729,856,881
Net assets at end of period including accumulated undistributed net investment income of $19,116,562 and $20,332,513, respectively		$	562,714,998			$	689,809,629
Net asset value per common share		$	10.01			$	11.74
Common shares outstanding at end of period			56,193,803				58,733,284

 

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Statements of Cash Flows

 

		For the three months ended December 31
		2015				2014
		(unaudited)				(unaudited)
Cash flows from operating activities
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS		$	(39,204,312	)		$	(18,315,938	)
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			(3,817,899	)			(2,082,905	)
Net amortization of premium/(discount) on investments			(229,653	)			(387,216	)
Amortization of deferred financing costs			788,924				599,148
Net realized (gain)/loss from investments			(5,378,048	)			216,584
Net deferred income taxes			224,616				(210,950	)
Net unrealized (appreciation)/depreciation on investments			60,023,619				38,700,337
Proceeds from sale and settlements of investments			97,056,910				98,691,113
Purchases, originations and participations			(46,686,682	)			(112,342,683	)
(Increase)/decrease in operating assets:
Interest receivable			823,758				136,556
Fees receivable			(586,474	)			753,477
Other assets			119,967				137,961
Receivable for dispositions and investments sold			(564,347	)			6,638,891
Increase/(decrease) in operating liabilities:
Payable for investments purchased, originated and participated			-				(54,995,000	)
Management and incentive fees payable, net			(699,307	)			436,875
Accounts payable and accrued expenses			(1,027,843	)			(122,265	)
Interest and fees payable			1,277,906				(252,885	)
Administrator expenses payable			(83,165	)			9,345
Deferred revenue			28,381				54,774
Due to affiliate			109,066				(18,672	)
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES			62,175,417				(42,353,453	)
Cash flows from financing activities
Repurchase of common stock under stock repurchase program			(1,099,932	)			-
Offering costs paid			(118,576	)			(32,367	)
Borrowings on debt			83,762,825				69,500,000
Paydowns on debt			(116,500,000	)			-
Financing costs paid			(2,919,544	)			(300,000	)
Payments of cash dividends			(16,901,142	)			(21,731,314	)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES			(53,776,369	)			47,436,319
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS			8,399,048				5,082,866
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			15,714,256				36,731,488
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	24,113,304			$	41,814,354
Supplemental Information:
Interest paid during the period		$	4,883,873			$	5,990,801
Supplemental non-cash information:
Payment-in-kind interest income		$	2,218,068			$	2,457,010
Net amortization of premium/(discount) on investments		$	229,653			$	387,216
Amortization of deferred financing costs		$	(788,924	)		$	(599,148	)

 

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation 

 

Consolidated Schedule of Investments 

 

December 31, 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(12)		Energy:  Oil & Gas		Senior Secured First Lien Term Loan  (LIBOR + 14.00%, 1.00% LIBOR Floor)(10)(19)		3/30/2019			33,207,993				30,302,820				17,832,476				3.2	%
				Warrants to purchase 2.51% of outstanding company equity		3/30/2019			-				2,274,480				-				0.0	%
									33,207,993				32,577,300				17,832,476
Accupac, Inc.		Containers, Packaging & Glass		Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor) (18)		3/20/2020			31,000,000				31,000,000				31,000,000				5.5	%
									31,000,000				31,000,000				31,000,000
Advanced Diagnostic Holdings, LLC		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (LIBOR + 8.75% Cash, 0.875% LIBOR Floor) (19)		12/11/2020			15,554,250				15,554,250				15,554,250				2.8	%
									15,554,250				15,554,250				15,554,250
AESC Holding Corp, Inc.		Retail		Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(18)		5/27/2019			20,000,000				20,000,000				20,000,000				3.6	%
									20,000,000				20,000,000				20,000,000
Albertville Quality Foods, Inc. (12)		Beverages & Food		Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap)(18)		10/31/2018			17,343,750				17,343,750				17,413,819				3.1	%
									17,343,750				17,343,750				17,413,819
Access Media Holdings, LLC		Media:  Broadcasting & Subscription		Senior Secured First Lien Term Loan (10.00%)		7/22/2020			7,632,573				7,632,573				7,632,573				1.4	%
				Preferred Equity (12.00% PIK)		7/22/2020			1,652,475				1,652,475				577,845				0.1	%
				16% of Common Equity of Newco		7/22/2020			-				-				-				0.0	%
									9,285,048				9,285,048				8,210,418
American Covers, Inc.		Consumer Discretionary		Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(19)		3/1/2021			10,000,000				10,000,000				10,000,000				1.8	%
									10,000,000				10,000,000				10,000,000
Aurora Flight Sciences Corporation		Aerospace & Defense		Senior Secured Second Lien Term Loan (11.25% Cash, 2.00% PIK)		3/16/2016			16,545,825				16,545,825				16,545,825				2.9	%
									16,545,825				16,545,825				16,545,825
Autosplice, Inc. (7)(9)		High Tech Industries		Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.00% LIBOR Floor)(19)		6/30/2019			14,725,232				14,725,232				14,468,717				2.6	%
									14,725,232				14,725,232				14,468,717
Backcountry.com, Inc.		Retail		Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(19)		6/30/2020			2,575,260				2,575,260				2,571,037				0.5	%
									2,575,260				2,575,260				2,571,037

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of Net Assets (4)
BayDelta Maritime LLC		Transportation:  Cargo		Warrants to purchase 10% of the outstanding equity		6/30/2016			-				25,000				612,366				0.1	%
									-				25,000				612,366
Be Green Packaging, LLC (7)(9)		Containers, Packaging & Glass		Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor)(19)		12/13/2018			5,000,000				5,000,000				4,820,327				0.9	%
				Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor)(19)		12/13/2018			3,416,667				3,416,667				3,319,608				0.6	%
				Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor)(19)		12/13/2018			354,167				354,167				328,050				0.1	%
				1.13% Partnership Interest in RCAF VI CIV XXIII, L.P.		12/13/2018			-				416,250				86,921				0.0	%
									8,770,834				9,187,084				8,554,906
Black Angus Steakhouses, LLC (7)(9)		Hotel, Gaming & Leisure		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(18)		4/24/2020			8,060,268				8,060,268				8,023,202				1.4	%
				Senior Secured First Lien Delayed Draw (LIBOR + 9.00%, 1.00% LIBOR Floor)		4/24/2020			-				-				-				0.0	%
				Revolver (LIBOR + 9.00%, 1.00% LIBOR Floor)(27)		4/24/2020			357,143				357,143				357,077				0.1	%
									8,417,411				8,417,411				8,380,279
Brantley Transportation LLC (12)		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (12.00%)(10)		8/2/2017			9,183,928				9,088,925				4,884,647				0.9	%
									9,183,928				9,088,925				4,884,647
Calloway Laboratories, Inc.		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (17.00% PIK) (10)		9/30/2016			40,347,859				29,573,477				-				0.0	%
				Warrants to purchase 15.00% of the outstanding equity		9/30/2016			-				68,433				-				0.0	%
									40,347,859				29,641,910				-
CP OPCO LLC		Services:  Consumer		Senior Secured First Lien Term Loan (LIBOR + 6.75% Cash, 1.00% LIBOR Floor)(19)		9/30/2020			17,000,000				17,000,000				17,000,000				3.0	%
									17,000,000				17,000,000				17,000,000
ContMid Intermediate Inc.(12)		Automotive		Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(18)		10/25/2019			23,000,000				23,000,000				22,785,732				4.0	%
									23,000,000				23,000,000				22,785,732
ConvergeOne Holdings Corporation		Telecommunications		Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)		6/17/2021			12,500,000				12,395,556				12,109,375				2.1	%
									12,500,000				12,395,556				12,109,375
Crow Precision Components LLC		Aerospace & Defense		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)		9/30/2019			13,965,000				13,965,000				13,934,701				2.5	%
				350 units of outstanding equity in Wingman Holdings, Inc.		9/30/2019			-				700,000				716,774				0.1	%
									13,965,000				14,665,000				14,651,475

 

  

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of Net Assets (4)
DHISCO Electronic Distribution, Inc. (7)(12)		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				31,310,568				5.6	%
				Senior Secured First Lien Term Loan B (10.50% PIK)		2/10/2018			6,448,036				6,448,036				6,436,078				1.1	%
				Revolving Credit Facility (LIBOR + 9.00%, 1.50% LIBOR Floor)(24)		5/10/2017			-				-				-				0.0	%
				Equity - 1,230,769 Units(22)		2/10/2018			-				1,230,769				2,624,130				0.5	%
									37,686,131				38,916,900				40,370,776
DLR Restaurants LLC (12)		Hotel, Gaming & Leisure		Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)		4/18/2018			23,663,226				23,663,226				23,160,244				4.1	%
				Unsecured Debt (12.00% Cash, 4.00% PIK)		4/18/2018			278,924				278,924				274,248				0.0	%
									23,942,150				23,942,150				23,434,492
DreamFinders Homes LLC		Construction & Building		Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)		10/1/2018			11,417,103				11,305,812				11,219,587				2.0	%
				5,000 common units represent 5% of the outstanding equity interest of Dream Finders Holdings, LLC		10/1/2018			-				180,000				1,783,179				0.3	%
									11,417,103				11,485,812				13,002,766
Dynamic Energy Services International LLC		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)		3/6/2018			17,337,500				17,337,500				16,799,344				3.0	%
									17,337,500				17,337,500				16,799,344
Essex Crane Rental Corp. (12)		Construction & Building		Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor)(10)(19)		5/13/2019			20,930,727				20,460,116				3,558,642				0.6	%
									20,930,727				20,460,116				3,558,642
FKI Security Group LLC (12)		Capital Equipment		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(19)		3/30/2020			14,812,500				14,812,500				14,479,811				2.6	%
									14,812,500				14,812,500				14,479,811
Footprint Acquisition LLC		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)		2/27/2020			5,250,102				5,250,102				5,165,938				0.9	%
				Preferred Equity  (8.75% PIK)		2/27/2020			5,383,267				5,383,267				4,790,100				0.9	%
				150.0 units of Common Stock(23)		2/27/2020			-				-				-				0.0	%
									10,633,369				10,633,369				9,956,038
Freedom Powersports LLC		Automotive		Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)(19)		9/26/2019			15,000,000				15,000,000				14,970,707				2.7	%
									15,000,000				15,000,000				14,970,707

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of Net Assets (4)
Harrison Gypsum LLC (12)		Construction & Building		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)(18)		12/21/2018			55,546,997				55,546,997				54,383,843				9.7	%
									55,546,997				55,546,997				54,383,843
Heligear Acquisition Co.		Aerospace & Defense		Senior Secured First Lien Note (10.25% Cash)		10/15/2019			20,000,000				20,000,000				20,278,885				3.6	%
									20,000,000				20,000,000				20,278,885
JD Norman Industries, Inc.		Automotive		Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash)		3/6/2019			22,200,000				22,200,000				21,598,549				3.8	%
									22,200,000				22,200,000				21,598,549
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				19,985,238				3.6	%
									20,000,000				20,000,000				19,985,238
Lighting Science Group Corporation		Containers, Packaging & Glass		Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)		2/19/2019			15,810,280				15,136,429				14,957,157				2.6	%
				Warrants to purchase 2.36% of the outstanding equity		2/19/2019			-				955,680				145,000				0.0	%
									15,810,280				16,092,109				15,102,157
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)(19)		12/24/2019			10,254,472				10,254,472				10,036,360				1.8	%
									10,254,472				10,254,472				10,036,360
Lydell Jewelry Design Studio LLC (12)		Consumer goods:  Non-durable		Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 7.50% PIK, 1.50% LIBOR Floor)(11)(18)		9/13/2018			14,711,807				14,269,868				5,889,898				1.0	%
				Warrants to purchase 13.3% of the outstanding membership units		9/13/2018			-				-				-				0.0	%
									14,711,807				14,269,868				5,889,898
Merchant Cash and Capital LLC		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Delayed Draw (LIBOR + 8.00% Cash, 3.00% LIBOR Floor)(18)		3/4/2016			17,500,000				17,500,000				17,510,500				3.1	%
				Senior Secured Second Lien Term Loan (12.00% Cash)		8/19/2016			15,000,000				15,000,000				14,933,700				2.7	%
									32,500,000				32,500,000				32,444,200
Miratech Intermediate Holdings, Inc. (12)		Automotive		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor, 2% PIK)(18)		5/9/2019			13,727,445				13,727,445				13,461,544				2.3	%
									13,727,445				13,727,445				13,461,544
Momentum Telecom, Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)		3/10/2019			9,032,218				9,032,218				9,155,146				1.6	%
									9,032,218				9,032,218				9,155,146

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of Net Assets (4)
Nation Safe Drivers Holdings, Inc.		Banking, Finance, Insurance & Real Estate		Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)(19)		9/29/2020			35,278,846				35,278,846				34,734,493				6.2	%
									35,278,846				35,278,846				34,734,493
Nielsen & Bainbridge LLC		Consumer goods:  Durable		Senior Secured Second Lien Term Loan (LIBOR + 9.25% Cash, 1.00% LIBOR Floor)(18)		8/15/2021			25,000,000				25,000,000				24,213,499				4.3	%
									25,000,000				25,000,000				24,213,499
Northern Lights MIDCO LLC		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.50% LIBOR Floor)		11/24/2019			4,523,750				4,523,750				4,588,252				0.8	%
									4,523,750				4,523,750				4,588,252
NorthStar Group Services, Inc.		Construction & Building		Unsecured Debt (2.50% Cash, 15.50% PIK)		10/24/2019			23,658,218				23,658,218				23,658,218				4.2	%
									23,658,218				23,658,218				23,658,218
Oxford Mining Company, LLC		Metals & Mining		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)		12/31/2018			20,288,028				20,288,028				19,383,238				3.4	%
									20,288,028				20,288,028				19,383,238
The Plastics Group, Inc.		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		2/28/2019			21,537,432				21,537,432				20,926,846				3.7	%
									21,537,432				21,537,432				20,926,846
Point.360 (7)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash)(19)		7/8/2020			960,000				960,000				960,000				0.2	%
				Equity - 479,283 Common Shares(25)		7/8/2020			-				129,406				421,769				0.1	%
				Warrants to purchase 2.8% of the outstanding common shares (26)		7/8/2020			-				52,757				284,555				0.1	%
									960,000				1,142,163				1,666,324
Prestige Industries LLC		Services:  Business		Senior Secured Second Lien Term Loan (18.00% PIK)		11/1/2017			7,506,654				7,463,220				6,889,757				1.2	%
				Warrants to purchase 0.63% of the outstanding common units		11/1/2017			-				151,855				-				0.0	%
									7,506,654				7,615,075				6,889,757
Prince Mineral Holding Corp.(8)		Wholesale		Senior Secured First Lien Note (11.50%)		12/15/2019			6,800,000				6,747,184				4,972,500				0.9	%
									6,800,000				6,747,184				4,972,500
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)(18)		2/29/2016			30,785,260				30,785,260				30,785,260				5.5	%
									30,785,260				30,785,260				30,785,260
Reddy Ice Corporation		Beverages & Food		Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)(18)		11/1/2019			17,000,000				17,000,000				13,165,425				2.3	%
									17,000,000				17,000,000				13,165,425

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of Net Assets (4)
Response Team Holdings, LLC		Construction & Building		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 2.00% LIBOR Floor)(18)		3/28/2019			26,936,514				26,936,514				27,164,397				4.8	%
				Preferred Equity (12.00% PIK)		3/28/2019			5,718,078				5,405,897				5,445,440				1.0	%
				Warrants to purchase 6.17% of the outstanding common units		3/28/2019			-				429,012				1,492,557				0.3	%
									32,654,592				32,771,423				34,102,394
Safeworks LLC(12)		Capital Equipment		Unsecured Debt (12.00% Cash)		1/31/2020			15,000,000				15,000,000				14,972,225				2.7	%
									15,000,000				15,000,000				14,972,225
Sendero Drilling Company LLC		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)		3/18/2019			12,782,816				12,219,116				12,874,085				2.3	%
				Warrants to purchase 5.52% of the outstanding common units		3/18/2019			-				793,523				4,934,674				0.9	%
									12,782,816				13,012,639				17,808,759
Seotowncenter, Inc.(12)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)		9/11/2019			27,500,000				27,500,000				27,038,603				4.8	%
				3,249.697 shares of Common Stock(14)		9/11/2019			-				500,000				389,126				0.1	%
									27,500,000				28,000,000				27,427,729
Ship Supply Acquisition Corporation (7)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)		7/31/2020			8,392,431				8,392,431				8,392,011				1.5	%
				Revolver (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)(20)		7/31/2016			-				-				-				0.0	%
									8,392,431				8,392,431				8,392,011
Stancor, Inc.		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 0.75% LIBOR Floor)(18)		8/19/2019			5,981,818				5,981,818				5,832,252				1.0	%
				263,814.43 Class A Units(15)		8/19/2019			-				263,814				242,409				0.0	%
									5,981,818				6,245,632				6,074,661
T. Residential Holdings LLC		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Term Loan (12.00%)		3/28/2019			19,250,000				19,250,000				19,100,557				3.4	%
									19,250,000				19,250,000				19,100,557
Taylored Freight Services LLC		Services:  Business		Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 2.00% PIK, 1.50% LIBOR Floor)(19)		11/1/2017			15,258,183				15,258,183				14,091,390				2.5	%
									15,258,183				15,258,183				14,091,390
Tenere Acquisition Corp.(7)(9)		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		12/15/2017			11,283,628				11,283,628				11,416,464				2.0	%
									11,283,628				11,283,628				11,416,464
Transtelco Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor)(18)		11/19/2017			18,816,000				18,816,000				18,774,793				3.3	%
									18,816,000				18,816,000				18,774,793

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of Net Assets (4)
Untangle, Inc.		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash)		4/18/2019			9,465,000				9,465,000				9,506,196				1.7	%
									9,465,000				9,465,000				9,506,196
Velocity Pooling Vehicle LLC		Automotive		Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(18)		5/14/2022			24,000,000				21,086,650				16,804,940				3.0	%
									24,000,000				21,086,650				16,804,940
Watermill-QMC Midco, Inc.		Automotive		Senior Secured First Lien Term Loan (13.00% Cash)		6/30/2020			15,312,693				15,312,694				15,327,659				2.7	%
				1.3% Partnership Interest in Watermill-QMC Midco Inc. (6)		6/30/2020			-				295,362				380,052				0.1	%
									15,312,693				15,608,056				15,707,711
Wheels Up Partners LLC (12)		Aerospace & Defense		Senior Secured First Lien Delayed Draw (LIBOR + 8.55% Cash, 1.00% LIBOR Floor)(19)		10/15/2021			17,857,315				17,857,315				17,771,064				3.1	%
									17,857,315				17,857,315				17,771,064
Window Products, Inc.		Construction & Building		Senior Secured Second Lien Term Loan (LIBOR + 10.75% Cash, 1.00% LIBOR Floor)(19)		12/27/2019			14,000,000				14,000,000				14,140,000				2.5	%
									14,000,000				14,000,000				14,140,000
Subtotal Non-Controlled / Non-Affiliated Investments								$	1,109,857,753			$	1,098,861,920			$	1,012,558,424
Control Investments:(5)
Capstone Nutrition (12)		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash,  1.00% PIK, 1.00% LIBOR Floor)(19)		4/28/2019			20,564,336				20,564,336				15,217,609				2.7	%
				Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash,  1.00% PIK, 1.00% LIBOR Floor)(19)		4/28/2019			4,372,497				4,372,497				3,235,648				0.6	%
				7,463.4 Class B Shares, and 15,079.0 Class C Shares represent 33.0% ownership of Cornerstone Research & Development, Inc.		4/28/2019			-				12				-				0.0	%
				384.62 Units of Common Stock (13)		4/28/2019			-				400,000				-				0.0	%
									24,936,833				25,336,845				18,453,257
MCC Senior Loan Strategy JV I LLC		Multisector Holdings		Equity - 87.5% ownership of MCC Senior Loan Strategy JV I LLC					-				23,187,500				22,988,940				4.1	%
									-				23,187,500				22,988,940
OmniVere LLC		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 1.00% PIK)		5/5/2019			19,275,662				18,898,313				19,275,662				3.4	%
				Unsecured Debt  (8.00% PIK) (10)		7/24/2025			13,238,728				12,479,195				5,106,550				0.9	%
				Warrants to purchase outstanding equity (21)		5/5/2019			-				872,698				-				0.0	%
									32,514,390				32,250,206				24,382,212

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of Net Assets (4)
United Road Towing Inc.		Services:  Business		Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash)		2/21/2020			17,403,909				17,403,909				17,404,008				3.1	%
				Preferred Equity Class C (8.00% PIK) (10)		2/21/2020			18,802,789				17,466,376				9,336,901				1.6	%
				Preferred Equity  Class C-1 (8.00% PIK) (10)		2/21/2020			1,732,849				1,326,945				-				0.0	%
				Preferred Equity  Class A-2 (8.00% PIK) (10)		2/21/2020			5,097,330				4,664,855				-				0.0	%
				65,809.73 Class B Common Units(16)		2/21/2020			-				1,098,096				-				0.0	%
									43,036,877				41,960,181				26,740,909
Subtotal Control Investments								$	100,488,100			$	122,734,732			$	92,565,318
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				1.2	%
				Preferred Equity - 33,300 Units(17)		9/10/2019			-				3,330,000				3,330,000				0.6	%
									6,670,000				10,000,000				10,000,000
Subtotal Affiliated Investments								$	6,670,000			$	10,000,000			$	10,000,000
Total Investments, December 31, 2015								$	1,217,015,853			$	1,231,596,652			$	1,115,123,742				198.2	%

(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 $22.3 million, $118.6 million and $96.3 million, respectively. The tax cost of investments is $1,211.7 million.

 

(4)

Percentage is based on net assets of $562,714,998 as of December 31, 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)

12,711 Units represents 1.3% of partnership interest in Watermill-QMC Partners, LP.

 

(7)

The investment has an unfunded commitment as of December 31, 2015 (See note 8).

 

(8)

Securities are exempt from registration under Rule 144a of the Securities Act of 1933. This security represents a fair value of $5.0 million and 0.9% of net assets as of December 31, 2015 and is considered restricted.

 

(9)

Includes an analysis of the value of any unfunded loan commitments.

 

(10)

The investment was on non-accrual status as of December 31, 2015.

 

(11)

The investment was on PIK non-accrual status as of December 31, 2015.

 

(12)

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

 

(13)

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

 

(14)

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

 

(15)

263,814.43 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 US Multifamily, LLC.

 

(18)

The interest rate on these loans is subject to a base rate plus 1 Month London Interbank Offering Rate ("LIBOR"), which at December 31, 2015 was 0.24%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 1 Month LIBOR rate at December 31, 2015, the prevailing rate in effect at December 31, 2015 was the base rate plus the LIBOR Floor.

 

(19)

The interest rate on these loans is subject to a base rate plus 3 Month LIBOR, which at December 31, 2015 was 0.41%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 3 Month LIBOR rate at December 31, 2015, the prevailing rate in effect at December 31, 2015 was the base rate plus the LIBOR Floor.

 

(20)

The investment earns 0.50% commitment fee on all unused commitment. At December 31, 2015, there was $1,036,422 of unused commitment.

 

(21)

5,055.56 Units of Common Stock, represents 50.56% of the outstanding equity.

 

(22)

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

 

(23)

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

 

(24)

The investment earns 0.50% commitment fee on all unused commitment. At December 31, 2015, there was $3,047,619 of unused commitment.

 

(25)

479,283 Common Shares represents 3.8% of the outstanding common shares in Point.360.

 

(26)

351,713 Units represents 2.8% of the outstanding common shares in Point.360.

 

(27)

The investment earns 0.50% commitment fee on all unused commitment. At December 31, 2015, there was $535,714 of unused commitment.

 

See accompanying notes to consolidated financial statements.

 

  

Medley Capital Corporation 

 

Consolidated Schedule of Investments 

 

September 30, 2015 

 

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			31,966,906				30,302,821				22,503,872				3.6	%
				Warrants to purchase 1.80% of outstanding company equity		3/30/2019			-				2,274,480				-				0.0	%
									31,966,906				32,577,301				22,503,872
Accupac, Inc.		Containers, Packaging & Glass		Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor) (17)		3/20/2020			35,000,000				35,000,000				34,680,800				5.6	%
									35,000,000				35,000,000				34,680,800
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				20,149,200				3.3	%
									20,000,000				20,000,000				20,149,200

 

 

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				17,580,585				2.8	%
									17,452,830				17,452,830				17,580,585
Access Media Holdings, LLC (7)		Media:  Broadcasting & Subscription		Senior Secured First Lien Term Loan (10.00%)		7/22/2020			7,536,913				7,536,913				7,536,913				1.2	%
				Preferred Equity (12.00% PIK)		7/22/2020			1,187,417				1,187,417				207,578				0.0	%
				16% of Common Equity of Newco		7/22/2020			-				-				-				0.0	%
									8,724,330				8,724,330				7,744,491
American Covers, Inc.		Consumer Discretionary		Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)		3/1/2021			10,000,000				10,000,000				10,000,000				1.6	%
									10,000,000				10,000,000				10,000,000
Aurora Flight Sciences Corporation		Aerospace & Defense		Senior Secured Second Lien Term Loan (11.25% Cash, 2.00% PIK)		3/16/2016			16,461,545				16,461,545				16,461,545				2.7	%
									16,461,545				16,461,545				16,461,545
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				14,773,761				2.4	%
									14,817,844				14,817,844				14,773,761
Backcountry.com, Inc.		Retail		Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(18)		6/30/2020			2,583,333				2,583,333				2,583,333				0.4	%
									2,583,333				2,583,333				2,583,333
BayDelta Maritime LLC		Transportation:  Cargo		Warrants to purchase 10% of the outstanding equity		6/30/2016			-				25,000				460,099				0.1	%
									-				25,000				460,099
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				4,823,494				0.8	%
				Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor)(18)		12/13/2018			3,416,667				3,416,667				3,294,714				0.5	%
				Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor)(18)		12/13/2018			354,167				354,167				327,425				0.1	%
				1.13% Partnership Interest in RCAF VI CIV XXIII, L.P.		12/13/2018			-				416,250				230,894				0.0	%
									8,770,834				9,187,084				8,676,527
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			8,111,607				8,111,607				8,111,607				1.3	%
				Senior Secured First Lien Delayed Draw (LIBOR + 9.00%, 1.00% LIBOR Floor)		4/24/2020			-				-				-				0.0	%
				Revolver (LIBOR + 9.00%, 1.00% LIBOR Floor)		4/24/2020			446,429				446,429				446,429				0.1	%
									8,558,036				8,558,036				8,558,036

 

 

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				9,100,912				6,332,324				1.0	%
									9,000,000				9,100,912				6,332,324
California Products Corporation		Chemicals, Plastics & Rubber		Senior Secured Second Lien Term Loan (13.00%)		5/27/2019			13,750,000				13,750,000				13,837,313				2.2	%
									13,750,000				13,750,000				13,837,313
Calloway Laboratories, Inc.		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (17.00% PIK) (10)		9/30/2016			38,860,511				29,573,477				-				0.0	%
				Warrants to purchase 15.00% of the outstanding equity		9/30/2016			-				68,433				-				0.0	%
									38,860,511				29,641,910				-
Capstone Nutrition		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash,  1.00% PIK, 1.00% LIBOR Floor)(18)		4/28/2019			20,085,144				20,085,144				20,109,849				3.2	%
				384.62 Units of Common Stock (12)		4/28/2019			-				400,000				731,126				0.1	%
									20,085,144				20,485,144				20,840,975
CP OPCO LLC		Services:  Consumer		Senior Secured First Lien Term Loan (LIBOR + 6.75% Cash, 1.00% LIBOR Floor)(18)		9/30/2020			17,000,000				17,000,000				17,000,000				2.7	%
									17,000,000				17,000,000				17,000,000
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				14,811,049				2.4	%
									15,000,000				15,000,000				14,811,049
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				12,391,902				12,320,250				2.0	%
									12,500,000				12,391,902				12,320,250

 

 

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				13,998,510				2.3	%
				250 units of outstanding equity in Wingman Holdings, Inc.		9/30/2019			-				500,000				589,147				0.1	%
									14,000,000				14,500,000				14,587,657
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				31,479,253				5.1	%
				Senior Secured First Lien Term Loan B (10.50% PIK)		2/10/2018			6,278,067				6,278,067				6,301,164				1.0	%
				Revolving Credit Facility (LIBOR + 9.00%, 1.50% LIBOR Floor)(23)		5/10/2017			-				-				-				0.0	%
				Equity - 1,230,769 Units(21)		2/10/2018			-				1,230,769				2,378,890				0.4	%
									37,516,162				38,746,931				40,159,307
DLR Restaurants LLC (11)		Hotel, Gaming & Leisure		Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)		4/18/2018			23,512,686				23,512,686				23,226,501				3.7	%
				Unsecured Debt (12.00% Cash, 4.00% PIK)		4/18/2018			276,092				276,092				272,037				0.0	%
									23,788,778				23,788,778				23,498,538
DreamFinders Homes LLC (9)		Construction & Building		Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)		10/1/2018			14,091,194				13,971,357				14,140,514				2.3	%
				5,000 units of outstanding equity		10/1/2018			-				180,000				1,929,761				0.3	%
									14,091,194				14,151,357				16,070,275
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			17,575,000				17,575,000				17,042,829				2.7	%
									17,575,000				17,575,000				17,042,829
Essex Crane Rental Corp. (11)		Construction & Building		Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor)(18)		5/13/2019			20,000,000				20,000,000				19,325,800				3.1	%
									20,000,000				20,000,000				19,325,800
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			14,906,250				14,906,250				14,616,174				2.4	%
									14,906,250				14,906,250				14,616,174
Footprint Acquisition LLC		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)(17)		2/27/2020			5,250,102				5,250,103				5,151,828				0.8	%
				Preferred Equity  (8.75% PIK)		2/27/2020			5,151,581				5,151,581				4,652,001				0.8	%
				150.0 units of Common Stock(22)		2/27/2020			-				-				-				0.0	%
									10,401,683				10,401,684				9,803,829

 

 

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			10,200,000				10,200,000				10,268,663				1.7	%
				Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)		9/26/2019			3,000,000				3,000,000				3,032,312				0.5	%
									13,200,000				13,200,000				13,300,975
Harrison Gypsum LLC (11)		Metals & Mining		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)(17)		12/21/2018			56,134,983				56,134,983				55,225,035				8.9	%
									56,134,983				56,134,983				55,225,035
Heligear Acquisition Co.		Aerospace & Defense		Senior Secured First Lien Note (10.25% Cash)		10/15/2019			20,000,000				20,000,000				20,523,479				3.3	%
									20,000,000				20,000,000				20,523,479
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				2.5	%
									15,000,000				15,000,000				15,150,000

  

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of  Net Assets (4)
JD Norman Industries, Inc.		Automotive		Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash)(17)		3/6/2019			22,500,000				22,500,000				22,183,434				3.6	%
									22,500,000				22,500,000				22,183,434
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				20,349,811				3.3	%
									20,000,000				20,000,000				20,349,811
Lighting Science Group Corporation		Containers, Packaging & Glass		Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(18)		2/19/2019			15,730,619				15,014,318				15,055,776				2.4