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 March 31, 2016

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.)
280 Park Avenue, 6th Floor East, New York, NY 10017		10017
(Address of Principal Executive Offices)		(Zip Code)

 

(212) 759-0777

 

(Registrant’s Telephone Number, Including Area Code)

 

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 May 6, 2016, the Registrant had 54,763,411 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 March 31, 2016 (unaudited) and September 30, 2015	F-1
		Consolidated Statements of Operations for the three and six months ended March 31, 2016 and 2015 (unaudited)	F-2
		Consolidated Statements of Changes in Net Assets for the six months ended March 31, 2016 and 2015 (unaudited)	F-3
		Consolidated Statements of Cash Flows for the six months ended March 31, 2016 and 2015 (unaudited)	F-4
		Consolidated Schedules of Investments as of March 31, 2016 (unaudited) and September 30, 2015	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	19
Item 4.		Controls and Procedures	20
Part II.		Other Information	21
Item 1.		Legal Proceedings	21
Item 1A.		Risk Factors	21
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3.		Defaults Upon Senior Securities	21
Item 4		Mine Safety Disclosures	21
Item 5.		Other Information	21
Item 6.		Exhibits	21
SIGNATURES			23

 

  

Medley Capital Corporation

 

Consolidated Statements of Assets and Liabilities

 

		As of
		March 31, 2016				September 30, 2015
		(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $1,020,855,705 and $1,175,785,384, respectively)		$	932,053,591			$	1,131,893,787
Controlled investments (amortized cost of $135,799,850 and $86,755,896 respectively)			94,035,961				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			1,036,089,552				1,216,091,989
Cash and cash equivalents			12,707,285				15,714,256
Interest receivable			9,965,754				9,542,547
Fees receivable			2,305,240				1,389,634
Receivable for dispositions and investments sold			394,282				578,868
Other assets			361,960				556,285
Deferred offering costs			212,036				208,477
Total assets		$	1,062,036,109			$	1,244,082,056
LIABILITIES
Revolving credit facility payable (net of debt issuance costs of $3,517,777 and $4,160,150, respectively)		$	21,782,223			$	188,539,850
Term loan payable  (net of debt issuance costs of $2,135,724 and $2,436,590, respectively)			171,864,276				171,563,410
Notes payable (net of debt issuance costs of $5,138,904 and $2,324,664, respectively)			172,373,921				101,175,336
SBA debentures payable (net of debt issuance costs of $3,865,627 and $4,206,226, respectively)			146,134,373				145,793,774
Management and incentive fees payable (See note 6)			5,901,623				9,962,534
Deferred tax liability			2,155,463				1,797,356
Interest and fees payable			1,831,590				1,313,931
Accounts payable and accrued expenses			1,793,833				2,503,442
Administrator expenses payable (See note 6)			1,042,518				1,000,846
Deferred revenue			359,190				402,029
Offering costs payable			25,268				-
Due to affiliate			-				109,164
Total liabilities		$	525,264,278			$	624,161,672
Commitments (See note 8)
NET ASSETS
Common stock, par value $0.001 per share, 100,000,000 common shares authorized, 54,763,411 and 56,337,152 common shares issued and outstanding, respectively		$	54,763			$	56,337
Capital in excess of par value			707,495,752				718,240,597
Accumulated undistributed net investment income			16,947,233				20,351,831
Accumulated net realized gain/(loss) from investments			(55,148,334	)			(60,625,616	)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes			(132,577,583	)			(58,102,765	)
Total net assets			536,771,831				619,920,384
Total liabilities and net assets		$	1,062,036,109			$	1,244,082,056
NET ASSET VALUE PER SHARE		$	9.80			$	11.00

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Statements of Operations

 

		For the three months ended March 31								For the six months ended March 31
		2016				2015				2016				2015
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
INVESTMENT INCOME:
Interest from investments
Non-controlled/non-affiliated investments:
Cash		$	25,273,975			$	31,181,799			$	53,399,996			$	63,622,513
Payment-in-kind			2,351,791				1,784,136				3,573,903				3,634,864
Affiliated investments:
Cash			166,750				340,600				333,500				805,152
Payment-in-kind			-				68,367				-				190,446
Controlled investments:
Cash			22,477				393,423				878,103				794,576
Payment-in-kind			1,130,729				466,928				2,126,685				951,131
Total interest income			28,945,722				34,235,253				60,312,187				69,998,682
Interest from cash and cash equivalents			10,168				1,327				12,403				2,972
Fee income (See note 9)			1,757,996				2,539,341				4,816,623				6,623,198
Total investment income			30,713,886				36,775,921				65,141,213				76,624,852
EXPENSES:
Base management fees (See note 6)			4,876,228				5,546,027				10,222,986				11,330,204
Incentive fees (See note 6)			3,148,783				4,438,250				7,065,252				9,535,758
Interest and financing expenses			7,920,197				6,248,296				14,890,282				12,604,798
Administrator expenses (See note 6)			1,042,519				1,098,337				1,958,896				2,120,148
Professional fees			555,585				839,340				1,188,106				1,372,032
General and administrative			453,178				585,010				1,163,170				934,859
Insurance			135,410				142,822				270,819				285,645
Directors fees			130,062				124,839				263,903				298,375
Expenses before management and incentive fee waiver			18,261,962				19,022,921				37,023,414				38,481,819
Management fee waiver (See note 6)			(71,604	)			-				(71,604	)			-
Incentive fee waiver (See note 6)			(2,051,784	)			-				(2,051,784	)			-
Total expenses net of management and incentive fee waiver			16,138,574				19,022,921				34,900,026				38,481,819
NET INVESTMENT INCOME			14,575,312				17,753,000				30,241,187				38,143,033
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from investments			99,234				(9,400,583	)			5,477,282				(9,617,167	)
Net unrealized appreciation/(depreciation) on investments			(14,093,093	)			4,136,169				(74,116,712	)			(34,564,168	)
Change in provision for deferred taxes on unrealized gain on investments			(133,490	)			(705,405	)			(358,106	)			(494,455	)
Net gain/(loss) on investments			(14,127,349	)			(5,969,819	)			(68,997,536	)			(44,675,790	)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		$	447,963			$	11,783,181			$	(38,756,349	)		$	(6,532,757	)
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE		$	0.01			$	0.20			$	(0.69	)		$	(0.11	)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE		$	0.26			$	0.30			$	0.54			$	0.65
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)			55,761,062				58,499,797				56,044,037				58,617,823
DIVIDENDS DECLARED PER COMMON SHARE		$	0.30			$	0.30			$	0.60			$	0.67

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Statements of Changes in Net Assets

 

		For the six months ended March 31
		2016				2015
		(unaudited)				(unaudited)
OPERATIONS:
Net investment income		$	30,241,187			$	38,143,033
Net realized gain/(loss) from investments			5,477,282				(9,617,167	)
Net unrealized appreciation/(depreciation) on investments			(74,116,712	)			(34,564,168	)
Change in provision for deferred taxes on unrealized gain on investments			(358,106	)			(494,455	)
Net increase/(decrease) in net assets from operations			(38,756,349	)			(6,532,757	)
SHAREHOLDER DISTRIBUTIONS:
Distributions from net investment income			(33,645,784	)			(39,299,875	)
Net decrease in net assets from shareholder distributions			(33,645,784	)			(39,299,875	)
CAPITAL SHARE TRANSACTIONS:
Repurchase of common stock under stock repurchase program (1,573,741 and 825,677 shares, respectively)			(10,699,990	)			(7,929,602	)
Offering costs			(46,430	)			-
Net increase/(decrease) in net assets from common share transactions			(10,746,420	)			(7,929,602	)
Total increase/(decrease) in net assets			(83,148,553	)			(53,762,234	)
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 $16,947,233 and $20,516,952, respectively		$	536,771,831			$	676,094,647
Net asset value per common share		$	9.80			$	11.68
Common shares outstanding at end of period			54,763,411				57,907,607

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Statements of Cash Flows

  

		For the six months ended March 31
		2016				2015
		(unaudited)				(unaudited)
Cash flows from operating activities
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS		$	(38,756,349	)		$	(6,532,757	)
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			(7,553,996	)			(4,762,063	)
Net amortization of premium/(discount) on investments			(446,191	)			(929,849	)
Amortization of debt issuance costs			1,701,963				1,195,227
Net realized (gain)/loss from investments			(5,477,282	)			9,617,167
Net deferred income taxes			358,106				494,455
Net unrealized (appreciation)/depreciation on investments			74,116,712				34,564,168
Proceeds from sale and settlements of investments			195,075,586				173,857,867
Purchases, originations and participations			(75,712,392	)			(178,491,717	)
(Increase)/decrease in operating assets:
Interest receivable			(423,207	)			(530,383	)
Fees receivable			(915,606	)			618,482
Other assets			194,325				292,532
Receivable for dispositions and investments sold			184,586				9,716,835
Increase/(decrease) in operating liabilities:
Payable for investments purchased, originated and participated			-				(54,995,000	)
Management and incentive fees payable, net			(4,060,911	)			(460,534	)
Accounts payable and accrued expenses			(709,609	)			(124,128	)
Interest and fees payable			517,659				(900,643	)
Administrator expenses payable			41,672				85,872
Deferred revenue			(42,839	)			76,056
Due to affiliate			(109,164	)			(22,798	)
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES			137,983,063				(17,231,211	)
Cash flows from financing activities
Repurchase of common stock under stock repurchase program			(10,699,990	)			(7,929,602	)
Offering costs paid			(24,720	)			(73,636	)
Borrowings on debt			118,112,825				101,500,000
Paydowns on debt			(211,500,000	)			(44,000,000	)
Financing costs paid			(3,232,365	)			(550,850	)
Payments of cash dividends			(33,645,784	)			(39,299,875	)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES			(140,990,034	)			9,646,037
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS			(3,006,971	)			(7,585,174	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			15,714,256				36,731,488
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	12,707,285			$	29,146,314
Supplemental Information:
Interest paid during the period		$	10,018,155			$	12,271,761
Supplemental non-cash information:
Payment-in-kind interest income		$	5,700,588			$	4,776,441
Net amortization of premium/(discount) on investments		$	446,191			$	929,849
Amortization of debt issuance costs		$	(1,701,963	)		$	(1,195,227	)

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Schedule of Investments 

 

March 31, 2016 

 

(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% PIK, 1.00% LIBOR Floor)(10)(19)		3/30/2019			32,154,522				27,980,664				17,266,657				3.2	%
				Warrants to purchase 2.51% of outstanding company equity		3/30/2019			-				2,274,480				-				0.0	%
									32,154,522				30,255,144				17,266,657
Accupac, Inc.		Containers, Packaging & Glass		Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor) (18)		7/14/2020			31,000,000				31,000,000				30,888,400				5.8	%
									31,000,000				31,000,000				30,888,400
Advanced Diagnostic Holdings, LLC		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (LIBOR + 8.75% Cash, 0.875% LIBOR Floor) (19)		12/11/2020			15,457,036				15,457,036				15,457,036				2.9	%
									15,457,036				15,457,036				15,457,036
Albertville Quality Foods, Inc. (12)		Beverage & Food		Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap)(18)		10/31/2018			16,190,258				16,190,258				16,256,800				3.0	%
									16,190,258				16,190,258				16,256,800
Access Media Holdings, LLC (9)		Media:  Broadcasting & Subscription		Senior Secured First Lien Term Loan (10.00%)		7/22/2020			7,729,447				7,729,447				7,729,447				1.4	%
				Preferred Equity Series A (12.00% PIK)		7/22/2020			1,703,108				1,703,108				550,342				0.1	%
				Preferred Equity Series AA (12.00% PIK)		7/22/2020			275,691				275,691				275,691				0.1	%
				16% of Common Equity of Newco		7/22/2020			-				-				-				0.0	%
									9,708,246				9,708,246				8,555,480
American Covers, Inc.		Consumer goods:  Non-durable		Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(19)		3/1/2021			10,000,000				10,000,000				9,898,400				1.9	%
									10,000,000				10,000,000				9,898,400
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			14,632,621				14,632,621				14,341,783				2.7	%
									14,632,621				14,632,621				14,341,783
Backcountry.com, LLC		Retail		Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(19)		6/30/2020			2,567,188				2,567,188				2,549,859				0.5	%
									2,567,188				2,567,188				2,549,859

 

  

BayDelta Maritime LLC		Transportation:  Cargo		Warrants to purchase 10% of the outstanding equity		6/30/2016			-				25,000				538,566				0.1	%
									-				25,000				538,566
Be Green Packaging, LLC (7)(9)		Containers, Packaging & Glass		Senior Secured First Lien Term Loan (LIBOR + 12.00%, 1.00% LIBOR Floor)(19)		12/13/2018			5,000,000				5,000,000				4,829,200				0.9	%
				Senior Secured First Lien Delayed Draw (LIBOR + 12.00%, 1.00% LIBOR Floor)(19)		12/13/2018			3,416,667				3,416,667				3,325,544				0.6	%
				Revolver (LIBOR + 12.00%, 1.00% LIBOR Floor)(19)		12/13/2018			354,167				354,167				329,475				0.1	%
				1.563% Partnership Interest in RCAF VI CIV XXIII, L.P.		12/13/2018			-				416,250				21,399				0.0	%
									8,770,834				9,187,084				8,505,618
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			8,008,929				8,008,929				7,925,519				1.5	%
				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			267,857				267,857				263,339				0.0	%
									8,276,786				8,276,786				8,188,858
Brantley Transportation LLC (12)		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (12.00% PIK)(10)		8/2/2017			9,465,323				9,076,715				5,034,321				0.9	%
									9,465,323				9,076,715				5,034,321
Calloway Laboratories, Inc.		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (17.00% PIK) (10)		9/30/2016			42,106,611				29,554,318				-				0.0	%
				Warrants to purchase 15.00% of the outstanding equity		9/30/2016			-				68,433				-				0.0	%
									42,106,611				29,622,751				-
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				16,896,130				3.1	%
									17,000,000				17,000,000				16,896,130
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				22,863,150				4.3	%
									23,000,000				23,000,000				22,863,150
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				12,399,256				11,999,500				2.2	%
									12,500,000				12,399,256				11,999,500

 

  

Crow Precision Components LLC		Aerospace & Defense		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)		9/30/2019			13,930,000				13,930,000				13,866,897				2.6	%
				350 units of outstanding equity in Wingman Holdings, Inc.		9/30/2019			-				700,000				731,591				0.1	%
									13,930,000				14,630,000				14,598,488
DHISCO Electronic Distribution, Inc. (7)(9)(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				30,557,105				5.7	%
				Senior Secured First Lien Term Loan B (10.50% PIK)		2/10/2018			6,620,694				6,620,694				6,463,850				1.2	%
				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				307,692				0.1	%
									37,858,789				39,089,558				37,328,647
DLR Restaurants LLC (12)		Hotel, Gaming & Leisure		Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)		4/18/2018			23,813,079				23,813,079				23,280,142				4.3	%
				Unsecured Debt (12.00% Cash, 4.00% PIK)		4/18/2018			281,754				281,754				276,237				0.1	%
									24,094,833				24,094,833				23,556,379
Dream Finders Homes, LLC		Construction & Building		Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)		10/1/2018			10,132,046				10,029,484				9,946,427				1.9	%
				5,000 common units represent 5% of the outstanding equity interest of Dream Finders Holdings, LLC		10/1/2018			-				180,000				1,046,482				0.2	%
									10,132,046				10,209,484				10,992,909
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			17,100,000				17,100,000				17,063,919				3.2	%
									17,100,000				17,100,000				17,063,919
Essex Crane Rental Corp. (12)		Construction & Building		Senior Secured First Lien Term Loan (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)(10)(19)		5/13/2019			21,653,232				20,460,116				3,681,483				0.7	%
									21,653,232				20,460,116				3,681,483
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			14,718,750				14,718,750				14,323,846				2.7	%
									14,718,750				14,718,750				14,323,846
Footprint Acquisition LLC		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash) (18)		2/27/2020			5,250,102				5,250,102				5,144,050				1.0	%
				Preferred Equity  (8.75% PIK)		2/27/2020			5,502,335				5,502,335				4,884,093				0.9	%
				150.0 units of Common Stock(23)		2/27/2020			-				-				352,230				0.1	%
									10,752,437				10,752,437				10,380,373
Freedom Powersports LLC		Automotive		Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)(19)		9/26/2019			14,630,000				14,630,000				14,656,041				2.7	%
									14,630,000				14,630,000				14,656,041
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			54,957,486				54,957,486				53,760,512				10.0	%
									54,957,486				54,957,486				53,760,512
Heligear Acquisition Co.		Aerospace & Defense		Senior Secured First Lien Note (10.25% Cash)		10/15/2019			20,000,000				20,000,000				20,444,600				3.8	%
									20,000,000				20,000,000				20,444,600

 

 

JD Norman Industries, Inc.		Automotive		Senior Secured First Lien Term Loan (LIBOR + 12.25% Cash) (18)		3/6/2019			21,900,000				21,900,000				20,599,578				3.8	%
									21,900,000				21,900,000				20,599,578
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				20,093,200				3.8	%
									20,000,000				20,000,000				20,093,200
Lighting Science Group Corporation		Containers, Packaging & Glass		Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK) (19)		2/19/2019			15,890,344				15,259,966				15,000,008				2.8	%
				Warrants to purchase 1.00% of the outstanding equity		2/19/2019			-				955,680				200,000				0.0	%
									15,890,344				16,215,646				15,200,008
LSF9 Atlantis Holdings, LLC		Retail		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)		1/15/2021			10,000,000				9,903,221				9,900,000				1.9	%
									10,000,000				9,903,221				9,900,000
Lucky Strike Entertainment, L.L.C.		Hotel, Gaming & Leisure		Senior Secured Second Lien Term Loan (LIBOR + 13.00% Cash, 1.00% LIBOR Floor)(19)		12/24/2019			10,254,472				10,254,472				10,282,159				1.9	%
									10,254,472				10,254,472				10,282,159
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)(10)(18)		9/13/2018			14,992,478				14,269,868				6,002,239				1.1	%
				Warrants to purchase 13.3% of the outstanding membership units		9/13/2018			-				-				-				0.0	%
									14,992,478				14,269,868				6,002,239
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)		12/4/2016			17,500,000				17,500,000				17,500,000				3.3	%
				Senior Secured Second Lien Term Loan (12.00% Cash)		5/4/2017			15,000,000				15,000,000				14,926,950				2.8	%
									32,500,000				32,500,000				32,426,950
Miratech Intermediate Holdings, Inc. (12)		Automotive		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor, 2.00% PIK)(18)		5/9/2019			13,081,744				13,081,744				12,605,961				2.3	%
									13,081,744				13,081,744				12,605,961

 

 

Momentum Telecom, Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)		3/10/2019			8,970,871				8,970,871				9,060,580				1.7	%
									8,970,871				8,970,871				9,060,580
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				34,493,892				6.4	%
									35,278,846				35,278,846				34,493,892
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				23,997,500				4.5	%
									25,000,000				25,000,000				23,997,500
NorthStar Group Services, Inc.		Construction & Building		Unsecured Debt (6.00% Cash, 12.00% PIK)		10/24/2019			24,407,394				24,407,394				24,407,394				4.5	%
									24,407,394				24,407,394				24,407,394
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			20,421,328				20,421,328				19,530,754				3.6	%
									20,421,328				20,421,328				19,530,754
The Plastics Group, Inc.		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		2/28/2019			21,646,499				21,646,499				20,985,199				3.9	%
									21,646,499				21,646,499				20,985,199
Point.360 (7)(9)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash)		7/8/2020			1,600,000				1,600,000				1,584,083				0.3	%
				Equity - 479,283 Common Shares(25)		7/8/2020			-				129,406				304,345				0.1	%
				Warrants to purchase 2.8% of the outstanding common shares (26)		7/8/2020			-				52,757				201,176				0.0	%
									1,600,000				1,782,163				2,089,604
Prestige Industries LLC		Services:  Business		Senior Secured Second Lien Term Loan (10.00% Cash, 3.00% PIK)		11/1/2017			7,563,723				7,529,676				6,898,267				1.3	%
				Warrants to purchase 0.63% of the outstanding common units		11/1/2017			-				151,855				-				0.0	%
									7,563,723				7,681,531				6,898,267
Prince Mineral Holding Corp.(8)		Wholesale		Senior Secured First Lien Note (11.50%)		12/15/2019			6,800,000				6,749,846				5,907,500				1.1	%
									6,800,000				6,749,846				5,907,500
RCS Management Corporation & Specialized Medical Services, Inc. (7)(9)		Healthcare & Pharmaceuticals		Senior Secured Second Lien Term Loan (LIBOR + 11.00% Cash, 1.50% LIBOR Floor, 0.50% PIK)(18)		8/29/2016			32,825,353				32,825,353				32,825,353				6.1	%
									32,825,353				32,825,353				32,825,353
Reddy Ice Corporation		Beverage & 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				13,122,640				2.5	%
									17,000,000				17,000,000				13,122,640
Response Team Holdings, LLC		Construction & Building		Preferred Equity (12.00% PIK)		3/28/2019			5,891,527				5,598,437				5,891,527				1.1	%
				Warrants to purchase 7.2% of the outstanding common units		3/28/2019			-				429,012				1,519,529				0.3	%
									5,891,527				6,027,449				7,411,056
Safeworks, LLC(12)		Capital Equipment		Unsecured Debt (12.00% Cash)		1/31/2020			15,000,000				15,000,000				14,901,600				2.8	%
									15,000,000				15,000,000				14,901,600
Sendero Drilling Company, LLC		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash) (18)		3/18/2019			7,539,003				7,011,495				7,592,831				1.4	%
				Warrants to purchase 5.52% of the outstanding common units		3/18/2019			-				793,523				5,326,327				1.0	%
									7,539,003				7,805,018				12,919,158

 

 

Seotowncenter, Inc.(12)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)		9/11/2019			27,156,250				27,156,250				26,672,597				5.0	%
				3,249.697 shares of Common Stock(14)		9/11/2019			-				500,000				158,299				0.0	%
									27,156,250				27,656,250				26,830,896
Ship Supply Acquisition Corporation (7)(9)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)		7/31/2020			8,286,197				8,286,197				8,238,635				1.5	%
				Revolver (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)(20)		7/31/2016			570,032				570,032				570,032				0.1	%
									8,856,229				8,856,229				8,808,667
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				5,811,755				1.1	%
				263,814.43 Class A Units(15)		8/19/2019			-				263,814				268,135				0.0	%
									5,981,818				6,245,632				6,079,890
T Residential Holdings, LLC		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Term Loan (12.00%)		3/28/2019			19,000,000				19,000,000				18,836,410				3.5	%
									19,000,000				19,000,000				18,836,410
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			15,104,823				15,104,823				14,129,354				2.6	%
									15,104,823				15,104,823				14,129,354
Tenere Acquisition Corp.(7)(9)		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		12/15/2017			11,206,394				11,206,394				11,206,526				2.1	%
									11,206,394				11,206,394				11,206,526
Transtelco Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor)(18)		11/19/2017			18,768,000				18,768,000				18,769,501				3.5	%
									18,768,000				18,768,000				18,769,501
Untangle, Inc.		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 14.00% Cash) (18)		4/18/2019			9,183,233				9,183,233				9,217,028				1.7	%
									9,183,233				9,183,233				9,217,028
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				21,166,468				16,714,560				3.1	%
									24,000,000				21,166,468				16,714,560
Watermill-QMC Midco, Inc.		Automotive		Senior Secured First Lien Term Loan (13.00% Cash)		6/30/2020			18,150,941				18,150,941				18,064,180				3.4	%
				1.3% Partnership Interest in Watermill-QMC Midco Inc. (6)		6/30/2020			-				295,362				388,239				0.1	%
									18,150,941				18,446,303				18,452,419
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			17,460,375				17,460,375				17,319,993				3.2	%
									17,460,375				17,460,375				17,319,993
Subtotal Non-Controlled / Non-Affiliated Investments								$	1,036,088,643			$	1,020,855,705			$	932,053,591

   

 

Control Investments:⁽⁵⁾

 

Capstone Nutrition (12)		Healthcare & Pharmaceuticals		Senior Secured First Lien Term Loan (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)(10)(19)		4/28/2019			21,274,077				20,803,397				13,115,894				2.4	%
				Senior Secured First Lien Delayed Draw (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)(10)(19)		4/28/2019			6,996,223				6,885,956				4,313,312				0.8	%
				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	%
									28,270,300				28,089,365				17,429,206
MCC Senior Loan Strategy JV I LLC(11)		Multisector Holdings		Equity - 87.5% ownership of MCC Senior Loan Strategy JV I LLC					-				23,187,500				23,273,450				4.3	%
									-				23,187,500				23,273,450
OmniVere, LLC		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 13.00% PIK) (19)		5/5/2019			20,865,004				20,510,132				20,865,004				3.9	%
				Unsecured Debt  (8.00% PIK) (10)		7/24/2025			21,902,369				20,756,913				13,455,063				2.5	%
				Warrants to purchase outstanding equity (21)		5/5/2019			-				872,698				-				0.0	%
									42,767,373				42,139,743				34,320,067
United Road Towing, Inc.		Services:  Business		Senior Secured Second Lien Term Loan (LIBOR + 9.00% PIK)		2/21/2020			17,826,970				17,826,970				17,826,970				3.3	%
				Preferred Equity Class C (8.00% PIK) (10)		2/21/2020			18,802,789				17,087,229				1,186,268				0.2	%
				Preferred Equity  Class C-1 (8.00% PIK) (10)		2/21/2020			2,146,938				1,706,092				-				0.0	%
				Preferred Equity  Class A-2 (8.00% PIK) (10)		2/21/2020			5,200,115				4,664,855				-				0.0	%
				65,809.73 Class B Common Units(16)		2/21/2020			-				1,098,096				-				0.0	%
									43,976,812				42,383,242				19,013,238
Subtotal Control Investments								$	115,014,485			$	135,799,850			$	94,035,961
Affiliated Investments:
US Multifamily, LLC(11)		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, March 31, 2016								$	1,157,773,128			$	1,166,655,555			$	1,036,089,552				193.0	%

 

  

(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 $17.0 million, $130.0 million and $113.0 million, respectively. The tax cost of investments is $1,149.1 million.

(4)

Percentage is based on net assets of $536,771,831 as of March 31, 2016.

(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 March 31, 2016 (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 $5.9 million and 1.1% of net assets as of March 31, 2016 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 March 31, 2016.

(11)

The investment is not a qualifying asset as defined under Section 55(a) of 1940 Act, in a whole, or in part.

(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 March 31, 2016 was 0.44%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 1 Month LIBOR rate at March 31, 2016, the prevailing rate in effect at March 31, 2016 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 March 31, 2016 was 0.64%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 3 Month LIBOR rate at March 31, 2016, the prevailing rate in effect at March 31, 2016 was the base rate plus the LIBOR Floor.

(20)

The investment earns 0.50% commitment fee on all unused commitment. At March 31, 2016, there was $466,390 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 March 31, 2016, 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 March 31, 2016, there was $625,000 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)		Beverage & Food(26)		Senior Secured First Lien Term Loan(17) (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap)		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, LLC(27)		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
Dream Finders Homes, LLC (9)(27)		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(27)		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	%
				Warrants to purchase 2.36% of the outstanding equity		2/19/2019			-				955,680				353,080				0.1	%
									15,730,619				15,969,998				15,408,856
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				10,163,515				1.6	%
									10,254,472				10,254,472				10,163,515
Lydell Jewelry Design Studio, LLC (11)(27)		Consumer goods: Non-durable		Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 7.50% PIK, 1.50% LIBOR Floor)(17)		9/13/2018			14,436,386				14,195,568				11,888,075				1.9	%
				Warrants to purchase 13.3% of the outstanding membership units		9/13/2018			-				-				-				0.0	%
									14,436,386				14,195,568				11,888,075
Merchant Cash and Capital, LLC (9)(27)		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Delayed Draw (LIBOR + 8.00% Cash, 3.00% LIBOR Floor)(17)		3/4/2016			17,500,000				17,500,000				17,547,775				2.8	%
				Senior Secured Second Lien Term Loan (12.00% Cash)		8/19/2016			15,000,000				15,000,000				14,978,850				2.4	%
									32,500,000				32,500,000				32,526,625

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of  Net Assets (4)
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				10,122,094				10,289,141				1.7	%
				Senior Secured First Lien Term Loan B (LIBOR + 11.50%, 2.50% LIBOR Floor)(18)		11/14/2016			6,600,000				6,600,000				6,600,000				1.1	%
				Warrants to purchase 8% of the outstanding equity		11/14/2016			-				536,296				5,431,566				0.9	%
									16,889,141				17,258,390