UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

Form 10-Q

 

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended June 30, 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 August 8, 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 June 30, 2016 (unaudited) and September 30, 2015	F-1
	Consolidated Statements of Operations for the three and nine months ended June 30, 2016 and 2015 (unaudited)	F-2
	Consolidated Statements of Changes in Net Assets for the nine months ended June 30, 2016 and 2015 (unaudited)	F-3
	Consolidated Statements of Cash Flows for the nine months ended June 30, 2016 and 2015 (unaudited)	F-4
	Consolidated Schedules of Investments as of June 30, 2016 (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	18
Item 4.	Controls and Procedures	19
Part II.	Other Information	20
Item 1.	Legal Proceedings	20
Item 1A.	Risk Factors	20
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3.	Defaults Upon Senior Securities	20
Item 4.	Mine Safety Disclosures	20
Item 5.	Other Information	20
Item 6.	Exhibits	21
SIGNATURES		22

 

 

Medley Capital Corporation 

 

Consolidated Statements of Assets and Liabilities

 

		As of
		June 30, 2016				September 30, 2015
		(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $969,239,911 and $1,175,785,384, respectively)		$	920,130,225			$	1,131,893,787
Controlled investments (amortized cost of $161,531,606 and $86,755,896, respectively)			112,360,720				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			1,042,490,945				1,216,091,989
Cash and cash equivalents			11,852,880				15,714,256
Interest receivable			8,286,602				9,542,547
Fees receivable			2,315,375				1,389,634
Other assets			1,082,291				556,285
Receivable for dispositions and investments sold			778,488				578,868
Deferred offering costs			242,991				208,477
Total assets		$	1,067,049,572			$	1,244,082,056
LIABILITIES
Revolving credit facility payable (net of debt issuance costs of $3,191,614 and $4,160,150, respectively)		$	24,608,386			$	188,539,850
Term loan payable (net of debt issuance costs of $1,982,703 and $2,436,590, respectively)			172,017,297				171,563,410
Notes payable (net of debt issuance costs of $4,877,813 and $2,324,664, respectively)			172,635,012				101,175,336
SBA debentures payable (net of debt issuance costs of $3,696,259 and $4,206,226, respectively)			146,303,741				145,793,774
Management and incentive fees payable (See note 6)			7,591,471				9,962,534
Interest and fees payable			3,110,450				1,313,931
Accounts payable and accrued expenses			2,654,033				2,503,442
Deferred tax liability			2,489,542				1,797,356
Administrator expenses payable (See note 6)			966,374				1,000,846
Deferred revenue			271,386				402,029
Due to affiliate			36,734				109,164
Total liabilities		$	532,684,426			$	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			11,471,984				20,351,831
Accumulated net realized gain/(loss) from investments			(84,324,823	)			(60,625,616	)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes			(100,332,530	)			(58,102,765	)
Total net assets			534,365,146				619,920,384
Total liabilities and net assets		$	1,067,049,572			$	1,244,082,056
NET ASSET VALUE PER SHARE		$	9.76			$	11.00

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Statements of Operations

 

		For the three months ended								For the nine months ended
		June 30								June 30
		2016				2015				2016				2015
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
INVESTMENT INCOME:
Interest from investments
Non-controlled/non-affiliated investments:
Cash		$	22,708,578			$	30,443,298			$	76,108,574			$	94,065,811
Payment-in-kind			1,722,822				2,269,865				5,296,725				5,904,729
Affiliated investments:
Cash			166,750				166,750				500,250				971,902
Payment-in-kind			-				-				-				190,446
Controlled investments:
Cash			821,650				398,725				1,699,753				1,193,301
Payment-in-kind			2,020,642				491,349				4,147,327				1,442,480
Total interest income			27,440,442				33,769,987				87,752,629				103,768,669
Dividend income, net of provisional taxes ($511,510 and $143,883, respectively)			333,351				107,434				333,351				107,434
Interest from cash and cash equivalents			3,554				1,387				15,957				4,359
Fee income (See note 9)			634,935				2,084,975				5,451,558				8,708,173
Total investment income			28,412,282				35,963,783				93,553,495				112,588,635
EXPENSES:
Base management fees (See note 6)			4,657,375				5,545,985				14,880,361				16,876,189
Incentive fees (See note 6)			2,793,709				4,310,026				9,858,961				13,845,784
Interest and financing expenses			7,680,571				6,160,394				22,570,853				18,765,192
Administrator expenses (See note 6)			966,374				1,066,119				2,925,270				3,186,267
Professional fees			638,558				904,659				1,826,664				2,276,691
General and administrative			324,949				461,625				1,488,119				1,396,484
Directors fees			132,724				134,520				396,627				432,895
Insurance			123,862				140,351				394,681				425,996
Expenses before management and incentive fee waivers			17,318,122				18,723,679				54,341,536				57,205,498
Management fee waiver (See note 6)			(40,339	)			-				(111,943	)			-
Incentive fee waiver (See note 6)			180,725				-				(1,871,059	)			-
Total expenses net of management and incentive fee waivers			17,458,508				18,723,679				52,358,534				57,205,498
NET INVESTMENT INCOME			10,953,774				17,240,104				41,194,961				55,383,137
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from investments			(29,176,489	)			(9,010,451	)			(23,699,207	)			(18,627,618	)
Net unrealized appreciation/(depreciation) on investments			32,285,431				427,082				(41,831,281	)			(34,137,086	)
Change in provision for deferred taxes on unrealized gain on investments			(40,378	)			(283,706	)			(398,484	)			(778,161	)
Net gain/(loss) on investments			3,068,564				(8,867,075	)			(65,928,972	)			(53,542,865	)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		$	14,022,338			$	8,373,029			$	(24,734,011	)		$	1,840,272
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE		$	0.26			$	0.14			$	(0.44	)		$	0.03
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE		$	0.20			$	0.30			$	0.74			$	0.95
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)			54,763,411				57,859,274				55,618,719				58,363,128
DIVIDENDS DECLARED PER COMMON SHARE		$	0.30			$	0.30			$	0.90			$	0.97

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Statements of Changes in Net Assets

 

		For the nine months ended
		June 30
		2016				2015
		(unaudited)				(unaudited)
OPERATIONS:
Net investment income		$	41,194,961			$	55,383,137
Net realized gain/(loss) from investments			(23,699,207	)			(18,627,618	)
Net unrealized appreciation/(depreciation) on investments			(41,831,281	)			(34,137,086	)
Change in provision for deferred taxes on unrealized gain on investments			(398,484	)			(778,161	)
Net increase/(decrease) in net assets from operations			(24,734,011	)			1,840,272
SHAREHOLDER DISTRIBUTIONS:
Distributions from net investment income			(50,074,808	)			(56,672,155	)
Net decrease in net assets from shareholder distributions			(50,074,808	)			(56,672,155	)
CAPITAL SHARE TRANSACTIONS:
Repurchase of common stock under stock repurchase program (1,573,741 and 994,758 shares, respectively)			(10,699,990	)			(9,506,069	)
Offering costs			(46,429	)			-
Net increase/(decrease) in net assets from common share transactions			(10,746,419	)			(9,506,069	)
Total increase/(decrease) in net assets			(85,555,238	)			(64,337,952	)
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 $11,471,984 and $20,384,776, respectively		$	534,365,146			$	665,518,929
Net asset value per common share		$	9.76			$	11.53
Common shares outstanding at end of period			54,763,411				57,738,526

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation

 

Consolidated Statements of Cash Flows

 

		For the nine months ended
		June 30
		2016				2015
		(unaudited)				(unaudited)
Cash flows from operating activities
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS		$	(24,734,011	)		$	1,840,272
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			(11,025,799	)			(7,334,583	)
Net amortization of premium/(discount) on investments			(670,198	)			(1,349,196	)
Amortization of debt issuance costs			2,613,877				1,807,210
Net realized (gain)/loss from investments			23,699,207				18,627,618
Net deferred income taxes			692,186				922,044
Net unrealized (appreciation)/depreciation on investments			41,831,281				34,137,086
Proceeds from sale and settlements of investments			207,145,298				223,292,550
Purchases, originations and participations			(87,378,745	)			(226,018,818	)
(Increase)/decrease in operating assets:
Interest receivable			1,255,945				1,284,656
Fees receivable			(925,741	)			455,621
Other assets			(526,006	)			(150,359	)
Receivable for dispositions and investments sold			(199,620	)			10,007,268
Increase/(decrease) in operating liabilities:
Payable for investments purchased, originated and participated			-				(54,995,000	)
Management and incentive fees payable, net			(2,371,063	)			(588,800	)
Accounts payable and accrued expenses			150,591				(113,682	)
Interest and fees payable			1,796,519				(193,689	)
Administrator expenses payable			(34,472	)			53,652
Deferred revenue			(130,643	)			54,938
Due to affiliate			(72,430	)			92,142
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES			151,116,176				1,830,930
Cash flows from financing activities
Repurchase of common stock under stock repurchase program			(10,699,990	)			(9,506,069	)
Offering costs paid			(80,944	)			(98,414	)
Borrowings on debt			133,112,825				165,500,000
Paydowns on debt			(224,000,000	)			(100,300,000	)
Financing costs paid			(3,234,635	)			(1,245,929	)
Payments of cash dividends			(50,074,808	)			(56,672,155	)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES			(154,977,552	)			(2,322,567	)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS			(3,861,376	)			(491,637	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			15,714,256				36,731,488
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	11,852,880			$	36,239,851
Supplemental Information:
Interest paid during the period		$	18,102,777			$	17,094,090
Supplemental non-cash information:
Payment-in-kind interest income		$	9,444,052			$	7,537,655
Net amortization of premium/(discount) on investments		$	670,198			$	1,349,196
Amortization of debt issuance costs		$	(2,613,877	)		$	(1,807,210	)

 

See accompanying notes to consolidated financial statements.

 

 

Medley Capital Corporation 

 

Consolidated Schedule of Investments 

 

June 30, 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			33,328,635				27,922,608				19,494,918				3.6	%
				Warrants to purchase 2.51% of outstanding company equity		3/30/2019			-				2,274,480				-				0.0	%
									33,328,635				30,197,088				19,494,918
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			15,359,822				15,359,822				15,561,496				2.9	%
									15,359,822				15,359,822				15,561,496
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			16,081,177				16,081,177				16,147,271				3.0	%
									16,081,177				16,081,177				16,147,271
Access Media Holdings, LLC(7)		Media:  Broadcasting & Subscription		Senior Secured First Lien Term Loan (10.00%)		7/22/2020			7,828,633				7,828,633				7,828,633				1.5	%
				Preferred Equity Series A (12.00% PIK)		7/22/2020			1,755,872				1,755,872				81,297				0.0	%
				Preferred Equity Series AA (12.00% PIK)		7/22/2020			478,415				478,415				478,415				0.1	%
				16% of Common Equity of Newco		7/22/2020			-				-				-				0.0	%
									10,062,920				10,062,920				8,388,345
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				10,200,000				1.9	%
									10,000,000				10,000,000				10,200,000
Autosplice, Inc.		High Tech Industries		Senior Secured First Lien Term Loan (LIBOR + 10.50% Cash, 1.00% LIBOR Floor)(19)		6/30/2019			14,534,394				14,534,395				14,426,259				2.7	%
									14,534,394				14,534,395				14,426,259
Backcountry.com, LLC		Retail		Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(19)		6/30/2020			2,559,115				2,559,115				2,584,706				0.5	%
									2,559,115				2,559,115				2,584,706

 

 

Company(1)		Industry		Type of Investment		Maturity		Par Amount(2)				Cost(3)				Fair Value				% of Net Assets(4)
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				4,646,650				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				3,175,211				0.6	%
				Revolver (LIBOR + 12.00%, 1.00% LIBOR Floor)(19)		12/13/2018			354,167				354,167				291,117				0.1	%
				1.563% Partnership Interest in RCAF VI CIV XXIII, L.P.		12/13/2018			-				416,250				-				0.0	%
									8,770,834				9,187,084				8,112,978
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			7,957,589				7,957,589				7,762,260				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			133,929				133,929				129,411				0.0	%
									8,091,518				8,091,518				7,891,671
Brantley Transportation LLC(7)(12)		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (12.00% PIK)(10)		8/2/2017			9,758,570				9,064,143				5,190,290				1.0	%
				Senior Secured First Lien Delayed Draw (LIBOR + 5.00%, 1.00% LIBOR Floor)		8/2/2017			412,500				412,500				412,500				0.1	%
				7.50 Common Units represent 8.04% of the outstanding equity interest of Brantley Trucking, LLC		8/2/2017			-				-				-				0.0	%
									10,171,070				9,476,643				5,602,790
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				16,325,440				3.1	%
									17,000,000				17,000,000				16,325,440
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				23,100,970				4.3	%
									23,000,000				23,000,000				23,100,970
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				12,403,042				12,330,125				2.3	%
									12,500,000				12,403,042				12,330,125
Crow Precision Components LLC		Aerospace & Defense		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)		9/30/2019			13,575,000				13,575,000				13,513,505				2.5	%
				350 units of outstanding equity in Wingman Holdings, Inc.		9/30/2019			-				700,000				305,455				0.1	%
									13,575,000				14,275,000				13,818,960

 

 

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				30,453,082				5.7	%
				Senior Secured First Lien Term Loan B (10.50% PIK)		2/10/2018			6,797,976				6,797,976				6,615,926				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				1,366,185				0.3	%
									38,036,071				39,266,840				38,435,193
DLR Restaurants LLC(12)		Hotel, Gaming & Leisure		Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)		4/18/2018			23,963,881				23,963,881				23,652,830				4.4	%
				Unsecured Debt (12.00% Cash, 4.00% PIK)		4/18/2018			284,612				284,612				281,080				0.1	%
									24,248,493				24,248,493				23,933,910
Dream Finders Homes, LLC		Construction & Building		Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)		10/1/2018			8,238,496				8,144,945				8,087,566				1.5	%
				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	%
									8,238,496				8,324,945				9,134,048
Dynamic Energy Services International LLC		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor, 1.5% PIK)(18)		3/6/2018			16,229,572				16,229,572				15,569,840				2.9	%
									16,229,572				16,229,572				15,569,840
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			22,408,891				20,460,116				2,666,658				0.5	%
									22,408,891				20,460,116				2,666,658
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			14,625,000				14,625,000				14,232,611				2.7	%
									14,625,000				14,625,000				14,232,611
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				5,302,340				1.0	%
				Preferred Equity  (8.75% PIK)		2/27/2020			5,624,036				5,624,036				5,623,755				1.1	%
				150.0 units of Common Stock(23)		2/27/2020			-				-				479,029				0.1	%
									10,874,138				10,874,138				11,405,124
Freedom Powersports LLC		Automotive		Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)(19)		9/26/2019			14,260,000				14,260,000				14,246,881				2.7	%
									14,260,000				14,260,000				14,246,881

 

 

 

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			54,367,231				54,367,231				53,039,583				9.9	%
									54,367,231				54,367,231				53,039,583
Heligear Acquisition Co.		Aerospace & Defense		Senior Secured First Lien Note (10.25% Cash)		10/15/2019			20,000,000				20,000,000				20,896,000				3.9	%
									20,000,000				20,000,000				20,896,000
JD Norman Industries, Inc.		Automotive		Senior Secured First Lien Term Loan (LIBOR + 12.25% Cash)(18)		3/6/2019			21,673,262				21,673,262				20,472,563				3.8	%
									21,673,262				21,673,262				20,472,563
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				20,193,400				3.8	%
									20,000,000				20,000,000				20,193,400
Lighting Science Group Corporation		Containers, Packaging & Glass		Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(19)		2/19/2019			15,971,700				15,386,319				15,034,001				2.8	%
				Warrants to purchase 0.98% of the outstanding equity		2/19/2024			-				955,680				270,000				0.1	%
									15,971,700				16,341,999				15,304,001
LSF9 Atlantis Holdings, LLC		Retail		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)		1/15/2021			9,875,000				9,782,119				9,776,250				1.8	%
									9,875,000				9,782,119				9,776,250
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				10,331,073				1.9	%
									10,254,472				10,254,472				10,331,073
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				14,911,800				2.8	%
									32,500,000				32,500,000				32,411,800

 

 

 

Company(1)		Industry		Type of Investment		Maturity		Par Amount(2)				Cost(3)				Fair Value				% of Net Assets(4)
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			12,741,782				12,741,782				12,577,158				2.4	%
									12,741,782				12,741,782				12,577,158
Momentum Telecom, Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)		3/10/2019			8,852,097				8,852,097				8,940,618				1.7	%
									8,852,097				8,852,097				8,940,618
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				35,922,332				6.7	%
									35,278,846				35,278,846				35,922,332
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				24,372,000				4.6	%
									25,000,000				25,000,000				24,372,000
NorthStar Group Services, Inc.		Construction & Building		Unsecured Debt (2.5% Cash, 15.5% PIK)		10/24/2019			25,123,345				25,123,345				24,746,746				4.6	%
									25,123,345				25,123,345				24,746,746
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			20,562,776				20,562,776				19,693,999				3.7	%
									20,562,776				20,562,776				19,693,999
The Plastics Group, Inc.		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		2/28/2019			21,756,119				21,756,119				20,959,845				3.9	%
									21,756,119				21,756,119				20,959,845
Point.360		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash)		7/8/2020			1,920,000				1,920,000				1,907,136				0.4	%
				Equity - 479,283 Common Shares(25)		7/8/2020			-				129,406				327,959				0.1	%
				Warrants to purchase 2.8% of the outstanding common shares(26)		7/8/2020			-				52,757				217,076				0.0	%
									1,920,000				2,102,163				2,452,171
Prestige Industries LLC		Services:  Business		Senior Secured Second Lien Term Loan (10.00% Cash, 3.00% PIK)		11/1/2017			7,621,227				7,596,895				7,017,626				1.3	%
				Warrants to purchase 0.63% of the outstanding common units		11/1/2017			-				151,855				-				0.0	%
									7,621,227				7,748,750				7,017,626
Prince Mineral Holding Corp.(8)		Wholesale		Senior Secured First Lien Note (11.50%)		12/15/2019			6,800,000				6,752,587				6,006,712				1.1	%
									6,800,000				6,752,587				6,006,712

 

 

Company(1)		Industry		Type of Investment		Maturity		Par Amount(2)				Cost(3)				Fair Value				% of Net Assets(4)
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)		8/29/2016			32,866,858				32,866,858				32,866,858				6.2	%
									32,866,858				32,866,858				32,866,858
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				13,560,220				2.5	%
									17,000,000				17,000,000				13,560,220
Response Team Holdings, LLC		Construction & Building		Preferred Equity (12.00% PIK)		3/28/2019			6,070,236				5,796,950				6,135,309				1.1	%
				Warrants to purchase 7.2% of the outstanding common units		3/28/2019			-				429,012				1,519,529				0.3	%
									6,070,236				6,225,962				7,654,838
Safeworks, LLC(12)		Capital Equipment		Unsecured Debt (12.00% Cash)		1/31/2020			15,000,000				15,000,000				15,057,750				2.8	%
									15,000,000				15,000,000				15,057,750
Sendero Drilling Company, LLC		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)(18)		3/18/2019			4,362,030				3,871,844				4,424,974				0.8	%
				Warrants to purchase 5.52% of the outstanding common units		3/18/2019			-				793,523				5,399,817				1.0	%
									4,362,030				4,665,367				9,824,791
Seotowncenter, Inc.(12)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)		9/11/2019			26,812,500				26,812,500				26,334,969				4.9	%
				3,249.697 shares of Common Stock(14)		9/11/2019			-				500,000				133,608				0.0	%
									26,812,500				27,312,500				26,468,577
Ship Supply Acquisition Corporation		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)		7/31/2020			8,179,964				8,179,964				8,133,011				1.5	%
									8,179,964				8,179,964				8,133,011
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				5,811,755				1.1	%
				263,814.43 Class A Units(15)		8/19/2019			-				263,815				207,370				0.0	%
									5,981,818				6,245,633				6,019,125

 

 

Company(1)		Industry		Type of Investment		Maturity		Par Amount(2)				Cost(3)				Fair Value				% of Net Assets(4)
T Residential Holdings, LLC		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Term Loan (12.00%)		3/28/2019			18,750,000				18,750,000				18,703,688				3.5	%
									18,750,000				18,750,000				18,703,688
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			15,113,306				15,113,307				14,759,504				2.8	%
									15,113,306				15,113,307				14,759,504
Tenere Acquisition Corp.(7)(9)		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		12/15/2017			11,128,769				11,128,769				11,110,257				2.1	%
									11,128,769				11,128,769				11,110,257
Transtelco Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor)(18)		11/19/2017			18,720,000				18,720,000				18,809,482				3.5	%
									18,720,000				18,720,000				18,809,482
Untangle, Inc.		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 14.00% Cash)(18)		4/18/2019			9,058,233				9,058,233				9,091,568				1.7	%
									9,058,233				9,058,233				9,091,568
Velocity Pooling Vehicle LLC		Automotive		Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(18)		5/13/2022			24,000,000				21,248,500				12,795,840				2.4	%
									24,000,000				21,248,500				12,795,840
Watermill-QMC Midco, Inc.		Automotive		Senior Secured First Lien Term Loan (13.00% Cash)		6/30/2020			18,035,565				18,035,565				18,371,568				3.4	%
				1.3% Partnership Interest in Watermill-QMC Midco Inc.(6)		6/30/2020			-				295,362				388,239				0.1	%
									18,035,565				18,330,927				18,759,807
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			17,039,435				17,039,435				16,902,438				3.2	%
									17,039,435				17,039,435				16,902,438
Subtotal Non-Controlled / Non-Affiliated Investments								$	973,371,717			$	969,239,911			$	920,130,225

 

 

Company(1)		Industry		Type of Investment		Maturity		Par Amount(2)				Cost(3)				Fair Value				% of Net Assets(4)
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			22,016,504				20,803,397				13,573,615				2.5	%
				Senior Secured First Lien Delayed Draw (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)(10)(19)		4/28/2019			9,526,523				9,153,997				5,873,292				1.1	%
				4,664.6 Class B Shares and 9,424.4 Class C Shares(28)		4/28/2019			-				12				-				0.0	%
				2,932.3 Units of Common Stock(13)		4/28/2019			-				400,003				-				0.0	%
									31,543,027				30,357,409				19,446,907
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			15,281,674				14,269,868				5,599,511				1.0	%
				Senior Secured First Lien Term Loan (LIBOR + 5.00% Cash, 1.50% LIBOR Floor)(10)(18)		9/13/2018			1,000,000				1,000,000				1,000,000				0.2	%
				Warrants to Purchase 13.3% of the outstanding membership units		9/13/2018			-				-				-				0.0	%
				4,324,951.76 shares of Common Stock(20)		9/13/2018			-				-				-				0.0	%
									16,281,674				15,269,868				6,599,511
MCC Senior Loan Strategy JV I LLC(11)		Multisector Holdings		Equity - 87.5% ownership of MCC Senior Loan Strategy JV I LLC					-				30,187,500				30,348,015				5.7	%
									-				30,187,500				30,348,015
OmniVere, LLC		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 13.00% PIK)(19)		5/5/2019			21,593,055				21,261,453				21,593,055				4.0	%
				Unsecured Debt  (8.00% PIK)(10)		7/24/2025			22,348,273				20,756,913				14,917,472				2.8	%
				Warrants to purchase outstanding equity(21)		5/5/2019			-				872,698				-				0.0	%
									43,941,328				42,891,064				36,510,527
United Road Towing, Inc.		Services:  Business		Senior Secured Second Lien Term Loan (LIBOR + 9.00% PIK)		2/21/2020			18,269,492				18,269,492				18,269,492				3.4	%
				Preferred Equity Class C (8.00% PIK)(10)		2/21/2020			18,802,789				16,712,204				1,186,268				0.2	%
				Preferred Equity  Class C-1 (8.00% PIK)(10)		2/21/2020			2,564,784				2,081,118				-				0.0	%
				Preferred Equity  Class A-2 (8.00% PIK)(10)		2/21/2020			5,303,832				4,664,855				-				0.0	%
				65,809.73 Class B Common Units(16)		2/21/2020			-				1,098,096				-				0.0	%
									44,940,897				42,825,765				19,455,760
Subtotal Control Investments								$	136,706,926			$	161,531,606			$	112,360,720

 

 

Company(1)		Industry		Type of Investment		Maturity		Par Amount(2)				Cost(3)				Fair Value				% of Net Assets(4)
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, June 30, 2016								$	1,116,748,643			$	1,140,771,517			$	1,042,490,945				195.1	%

 

(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 $19.8 million, $101.5 million and $81.7 million, respectively. The tax cost of investments is $1,124.2 million as of June 30, 2016.

 

(4)

Percentage is based on net assets of $534,365,146 as of June 30, 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 June 30, 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 $6.0 million and 1.1% of net assets as of June 30, 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 June 30, 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)

2,932.3 Units represents 3.06% ownership of INI Parent, 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 June 30, 2016 was 0.46%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 1 Month LIBOR rate at June 30, 2016, the prevailing rate in effect at June 30, 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 June 30, 2016 was 0.67%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 3 Month LIBOR rate at June 30, 2016, the prevailing rate in effect at June 30, 2016 was the base rate plus the LIBOR Floor.

 

(20)

4,324,951.76 Units of Common Stock represents 62.7% of the outstanding equity.

 

(21)

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

 

(22)

1,230,769 Units represents 3.12% 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 June 30, 2016, there was $1,904,761.91 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 June 30, 2016, there was $758,928.60 of unused commitment.

 

(28)

4,664.6 Class B and 9,424.4 Class C Shares represents 4.86% and 9.83% ownership in INI Parent, Inc., respectively.

 

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
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

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of  Net Assets (4)
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
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				-

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of  Net Assets (4)
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
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

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of  Net Assets (4)
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
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	%
				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)		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)		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
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				22,320,707
Miratech Intermediate Holdings, Inc. (9)(11)		Automotive		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor, 2% PIK)(17)		5/9/2019			13,756,657				13,756,657				13,580,572				2.2	%
									13,756,657				13,756,657				13,580,572

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of  Net Assets (4)
Momentum Telecom, Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(17)		3/10/2019			9,140,653				9,140,653				9,274,290				1.5	%
									9,140,653				9,140,653				9,274,290
Nation Safe Drivers Holdings, Inc.		Banking, Finance, Insurance & Real Estate		Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)(18)		9/29/2020			35,278,846				35,278,846				35,302,130				5.7	%
									35,278,846				35,278,846				35,302,130
Nielsen & Bainbridge LLC		Consumer goods:  Durable		Senior Secured Second Lien Term Loan (LIBOR + 9.25% Cash, 1.00% LIBOR Floor)(17)		8/15/2021			25,000,000				25,000,000				24,714,648				4.0	%
									25,000,000				25,000,000				24,714,648
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				4,570,584				0.7	%
									4,523,750				4,523,750				4,570,584
NorthStar Group Services, Inc.		Construction & Building		Unsecured Debt (2.50% Cash, 15.50% PIK)		10/24/2019			23,181,705				23,181,705				23,181,705				3.7	%
									23,181,705				23,181,705				23,181,705
Oxford Mining Company, LLC (9)		Metals & Mining		Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)		12/31/2018			20,160,994				20,160,994				19,387,166				3.1	%
									20,160,994				20,160,994				19,387,166
The Plastics Group, Inc.		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		2/28/2019			21,427,726				21,427,726				21,083,168				3.4	%
									21,427,726				21,427,726				21,083,168
Point.360 (7)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash)(18)		7/8/2020			320,000				320,000				320,000				0.1	%
				Equity - 479,283 Common Shares(24)		7/8/2020			-				129,406				479,283				0.1	%
				Warrants to purchase 2.8% of the outstanding common shares (25)		7/8/2020			-				52,757				272,711				0.0	%
									320,000				502,163				1,071,994
Prestige Industries LLC		Services:  Business		Senior Secured Second Lien Term Loan (18.00% PIK)		11/1/2017			7,932,041				7,879,441				7,280,186				1.2	%
				Warrants to purchase 0.63% of the outstanding common units		11/1/2017			-				151,855				-				0.0	%
									7,932,041				8,031,296				7,280,186
Prince Mineral Holding Corp.(8)		Metals & Mining		Senior Secured First Lien Note (11.50%)		12/15/2019			6,800,000				6,744,599				5,712,000				0.9	%
									6,800,000				6,744,599				5,712,000
RCS Management Corporation & Specialized Medical Services, Inc. (7)		Healthcare & Pharmaceuticals		Senior Secured Second Lien Term Loan ( LIBOR + 11.00% Cash, 1.50% LIBOR Floor, 0.50% PIK)(17)		2/29/2016			28,746,290				28,746,290				28,746,290				4.6	%
									28,746,290				28,746,290				28,746,290
Red Skye Wireless LLC (7)(9)		Retail		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)		6/27/2018			20,387,686				20,387,686				20,666,563				3.3	%
									20,387,686				20,387,686				20,666,563
Reddy Ice Corporation		Beverages & Food		Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)(17)		11/1/2019			17,000,000				17,000,000				13,436,761				2.2	%
									17,000,000				17,000,000				13,436,761

 

 

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)(17)		3/28/2019			25,537,850				25,537,850				25,305,455				4.1	%
				Preferred Equity (12.00% PIK)		3/28/2019			5,549,736				5,218,954				5,077,731				0.8	%
				Warrants to purchase 6.17% of the outstanding common units		3/28/2019			-				429,012				837,967				0.1	%
									31,087,586				31,185,816				31,221,153
Safeworks LLC(11)		Capital Equipment		Unsecured Debt (12.00% Cash)		1/31/2020			15,000,000				15,000,000				15,148,023				2.4	%
									15,000,000				15,000,000				15,148,023
Sendero Drilling Company LLC (9)		Energy:  Oil & Gas		Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)(17)		3/18/2019			13,026,628				12,427,454				13,106,872				2.1	%
				Warrants to purchase 5.52% of the outstanding common units		3/18/2019			-				793,523				4,353,269				0.7	%
									13,026,628				13,220,977				17,460,141
Seotowncenter, Inc.(11)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(18)		9/11/2019			27,500,000				27,500,000				27,428,182				4.4	%
				3,249.697 shares of Common Stock(13)		9/11/2019			-				500,000				1,184,303				0.2	%
									27,500,000				28,000,000				28,612,485
Ship Supply Acquisition Corporation (7)		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(18)		7/31/2020			8,498,664				8,498,664				8,498,579				1.4	%
				Revolver (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(18)(19)		7/31/2016			414,569				414,569				414,569				0.1	%
									8,913,233				8,913,233				8,913,148
Stancor, Inc.		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 0.75% LIBOR Floor)(17)		8/19/2019			7,000,000				7,000,000				6,815,830				1.1	%
				263,814.43 Class A Units(14)		8/19/2019			-				263,814				267,114				0.0	%
									7,000,000				7,263,814				7,082,944
T. Residential Holdings LLC		Banking, Finance, Insurance & Real Estate		Senior Secured First Lien Term Loan (12.00%)		3/28/2019			19,500,000				19,500,000				19,500,000				3.1	%
									19,500,000				19,500,000				19,500,000
Taylored Freight Services LLC		Services:  Business		Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 2.00% PIK, 1.50% LIBOR Floor)(18)		11/1/2017			15,330,548				15,330,548				14,274,887				2.3	%
									15,330,548				15,330,548				14,274,887

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of  Net Assets (4)
Tempel Steel Company(8)		Metals & Mining		Senior Secured First Lien Note (12.00%)		8/15/2016			11,000,000				10,952,851				10,145,174				1.7	%
									11,000,000				10,952,851				10,145,174
Tenere Acquisition Corp.(7)(9)		Chemicals, Plastics & Rubber		Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)		12/15/2017			11,359,842				11,359,842				11,627,039				1.9	%
									11,359,842				11,359,842				11,627,039
Transtelco Inc.		Telecommunications		Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor)(17)		11/19/2017			18,864,000				18,864,000				18,924,365				3.1	%
									18,864,000				18,864,000				18,924,365
Untangle, Inc.		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash)(17)		4/18/2019			9,527,500				9,527,500				9,527,690				1.5	%
									9,527,500				9,527,500				9,527,690
Velocity Pooling Vehicle LLC		Automotive		Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(17)		5/14/2022			24,000,000				21,008,149				19,832,766				3.2	%
									24,000,000				21,008,149				19,832,766
Watermill-QMC Midco, Inc.		Automotive		Senior Secured First Lien Term Loan (13.00% Cash)		6/30/2020			15,409,609				15,409,609				15,409,609				2.5	%
				1.3% Partnership Interest in Watermill-QMC Midco Inc. (6)		6/30/2020			-				295,362				295,362				0.0	%
									15,409,609				15,704,971				15,704,971
Wheels Up Partners LLC (11)		Aerospace & Defense		Senior Secured First Lien Delayed Draw (LIBOR + 8.55% Cash, 1.00% LIBOR Floor)(18)		10/15/2021			18,230,736				18,230,736				18,311,863				3.1	%
									18,230,736				18,230,736				18,311,863
Window Products, Inc.		Construction & Building		Senior Secured Second Lien Term Loan (LIBOR + 10.75% Cash, 1.00% LIBOR Floor)(18)		12/27/2019			14,000,000				14,000,000				14,140,000				2.3	%
									14,000,000				14,000,000				14,140,000
Subtotal Non-Controlled / Non-Affiliated Investments								$	1,182,862,012			$	1,175,785,384			$	1,131,893,787

 

 

Company (1)		Industry		Type of Investment		Maturity		Par Amount (2)				Cost(3)				Fair Value				% of  Net Assets (4)
Control Investments:(5)
MCC Senior Loan Strategy JV I LLC		Multisector Holdings		Equity - 87.5% ownership of MCC Senior Loan Strategy JV I LLC					-				14,437,500				14,215,834				2.3	%
									-				14,437,500				14,215,834
OmniVere LLC		Services:  Business		Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 1.00% PIK)(18)		5/5/2019			17,805,885				17,406,591				17,805,885				2.9	%
				Unsecured Debt  (8.00% PIK) (10)		7/24/2025			12,971,722				12,482,835				7,059,693				1.1	%
				Warrants to purchase outstanding equity (20)		5/5/2019			-				872,698				-				0.0	%
									30,777,607				30,762,124				24,865,578
United Road Towing Inc.		Services:  Business		Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash)(18)		2/21/2020			17,000,000				17,000,000				16,489,975				2.7	%
				Preferred Equity Class C (8.00% PIK) (10)		2/21/2020			18,802,789				17,466,375				17,747,200				2.9	%
				Preferred Equity  Class C-1 (8.00% PIK) (10)		2/21/2020			1,326,945				1,326,946				27,028				0.0	%
				Preferred Equity  Class A-2 (8.00% PIK) (10)		2/21/2020			4,996,578				4,664,855				690,695				0.1	%
				65,809.73 Class B Common Units(15)		2/21/2020			-				1,098,096				161,892				0.0	%
									42,126,312				41,556,272				35,116,790
Subtotal Control Investments								$	72,903,919			$	86,755,896			$	74,198,202