Attached files
file | filename |
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EX-32.1 - EXHIBIT 32.1 - ARES CAPITAL CORP | q1-17exhibit321.htm |
EX-31.2 - EXHIBIT 31.2 - ARES CAPITAL CORP | q1-17exhibit312.htm |
EX-31.1 - EXHIBIT 31.1 - ARES CAPITAL CORP | q1-17exhibit311.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2017
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period to
Commission File No. 814-00663
ARES CAPITAL CORPORATION
(Exact name of Registrant as specified in its charter)
Maryland | 33-1089684 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification Number) |
245 Park Avenue, 44th Floor, New York, NY 10167
(Address of principal executive office) (Zip Code)
(212) 750-7300
(Registrant’s telephone number, including area code)
____________________________________________________________________
N/A
(Former name, former address and former fiscal year, if changed since last report)
_____________________________________________________________________
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 ý No o
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 o No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) | ||
Emerging growth company o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class | Outstanding at April 26, 2017 | |
Common stock, $0.001 par value | 426,299,165 |
ARES CAPITAL CORPORATION
INDEX
Part I. | Financial Information | |
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions, except per share data)
As of | |||||||
March 31, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Investments at fair value | |||||||
Non-controlled/non-affiliate company investments | $ | 7,534 | $ | 5,940 | |||
Non-controlled affiliate company investments | 210 | 185 | |||||
Controlled affiliate company investments | 3,663 | 2,695 | |||||
Total investments at fair value (amortized cost of $11,602 and $9,034, respectively) | 11,407 | 8,820 | |||||
Cash and cash equivalents | 247 | 223 | |||||
Interest receivable | 128 | 112 | |||||
Receivable for open trades | 75 | 29 | |||||
Other assets | 133 | 61 | |||||
Total assets | $ | 11,990 | $ | 9,245 | |||
LIABILITIES | |||||||
Debt | $ | 4,585 | $ | 3,874 | |||
Base management fees payable | 39 | 34 | |||||
Income based fees payable | 32 | 32 | |||||
Capital gains incentive fees payable | 54 | 38 | |||||
Accounts payable and other liabilities | 195 | 58 | |||||
Interest and facility fees payable | 42 | 44 | |||||
Payable for open trades | 8 | — | |||||
Total liabilities | 4,955 | 4,080 | |||||
Commitments and contingencies (Note 7) | |||||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, par value $0.001 per share, 500 common shares authorized; 426 and 314 common shares issued and outstanding, respectively | — | — | |||||
Capital in excess of par value | 7,206 | 5,292 | |||||
Accumulated undistributed (overdistributed) net investment income | (31 | ) | 37 | ||||
Accumulated net realized gains on investments, foreign currency transactions, extinguishment of debt and other assets | 59 | 57 | |||||
Net unrealized losses on investments, foreign currency and other transactions | (199 | ) | (221 | ) | |||
Total stockholders' equity | 7,035 | 5,165 | |||||
Total liabilities and stockholders' equity | $ | 11,990 | $ | 9,245 | |||
NET ASSETS PER SHARE | $ | 16.50 | $ | 16.45 |
See accompanying notes to consolidated financial statements.
3
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share data)
(unaudited)
For the Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
INVESTMENT INCOME: | |||||||
From non-controlled/non-affiliate company investments: | |||||||
Interest income from investments | $ | 168 | $ | 140 | |||
Capital structuring service fees | 12 | 15 | |||||
Dividend income | 6 | 6 | |||||
Other income | 4 | 4 | |||||
Total investment income from non-controlled/non-affiliate company investments | 190 | 165 | |||||
From non-controlled affiliate company investments: | |||||||
Interest income from investments | 4 | 4 | |||||
Total investment income from non-controlled affiliate company investments | 4 | 4 | |||||
From controlled affiliate company investments: | |||||||
Interest income from investments | 59 | 63 | |||||
Capital structuring service fees | — | 1 | |||||
Dividend income | 18 | 10 | |||||
Management and other fees | 3 | 5 | |||||
Other income | 1 | — | |||||
Total investment income from controlled affiliate company investments | 81 | 79 | |||||
Total investment income | 275 | 248 | |||||
EXPENSES: | |||||||
Interest and credit facility fees | 55 | 50 | |||||
Base management fees | 39 | 35 | |||||
Income based fees | 32 | 29 | |||||
Capital gain incentive fees | 16 | 4 | |||||
Administrative fees | 3 | 4 | |||||
Professional fees and other costs related to the American Capital Acquisition | 26 | 1 | |||||
Other general and administrative | 8 | 7 | |||||
Total expenses | 179 | 130 | |||||
NET INVESTMENT INCOME BEFORE INCOME TAXES | 96 | 118 | |||||
Income tax expense, including excise tax | 2 | 5 | |||||
NET INVESTMENT INCOME | 94 | 113 | |||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS: | |||||||
Net realized gains (losses): | |||||||
Non-controlled/non-affiliate company investments | 6 | 19 | |||||
Controlled affiliate company investments | 7 | 6 | |||||
Foreign currency and other transactions | (11 | ) | 2 | ||||
Net realized gains | 2 | 27 | |||||
Net unrealized gains (losses): | |||||||
Non-controlled/non-affiliate company investments | (14 | ) | (21 | ) | |||
Non-controlled affiliate company investments | 1 | 10 | |||||
Controlled affiliate company investments | 31 | 6 | |||||
Foreign currency and other transactions | 4 | (3 | ) | ||||
Net unrealized gains (losses) | 22 | (8 | ) | ||||
Net realized and unrealized gains from investments, foreign currency and other transactions | 24 | 19 | |||||
NET INCREASE IN STOCKHOLDERS' EQUITY RESULTING FROM OPERATIONS | $ | 118 | $ | 132 | |||
BASIC AND DILUTED EARNINGS PER COMMON SHARE (see Note 10) | $ | 0.28 | $ | 0.42 | |||
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (see Note 10) | 422 | 314 |
See accompanying notes to consolidated financial statements.
4
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2017
(dollar amounts in millions)
(unaudited)
Company(1) | Business Description | Investment | Interest(6)(12) | Acquisition Date | Amortized Cost | Fair Value | Percentage of Net Assets | ||||||||||||
Investment Funds and Vehicles | |||||||||||||||||||
ACAS CLO 2007-1, Ltd. (8)(9)(10) | Investment vehicle | Subordinated notes ($25.9 par due 4/2021) | 1/3/2017 | — | — | ||||||||||||||
ACAS Equity Holdings Corporation (8)(10) | Investment company | Common stock (589 shares) | 1/3/2017 | 0.5 | 0.4 | ||||||||||||||
Ares IIIR/IVR CLO Ltd. (9)(10) | Investment vehicle | Subordinated notes ($20.0 par due 4/2021) | 10.80% | 1/3/2017 | 5.7 | 5.4 | |||||||||||||
Babson CLO Ltd. 2006-II (9)(10) | Investment vehicle | Income notes ($15.0 par due 10/2020) | 1/3/2017 | — | — | ||||||||||||||
Babson CLO Ltd. 2013-II (9)(10) | Investment vehicle | Income notes ($5.0 par due 1/2025) | 10.00% | 1/3/2017 | 3.1 | 3.1 | |||||||||||||
Babson CLO Ltd. 2014-I (9)(10) | Investment vehicle | Subordinated notes ($8.5 par due 7/2025) | 13.20% | 1/3/2017 | 4.7 | 5.1 | |||||||||||||
Babson CLO Ltd. 2014-II (9)(10) | Investment vehicle | Subordinated notes ($25.0 par due 10/2026) | 19.00% | 1/3/2017 | 12.9 | 14.3 | |||||||||||||
Blue Hill CLO, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($23.1 par due 11/2023) | 16.00% | 1/3/2017 | 7.7 | 8.2 | |||||||||||||
Subordinated notes ($0.3 par due 1/2026) | 44.70% | 1/3/2017 | — | 0.1 | |||||||||||||||
7.7 | 8.3 | ||||||||||||||||||
Blue Wolf Capital Fund II, L.P. (9)(10) | Investment partnership | Limited partnership interest (8.50% interest) | 1/3/2017 | 8.0 | 8.1 | ||||||||||||||
Carlyle Global Market Strategies CLO 2015-3, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($24.6 par due 7/2028) | 11.60% | 1/3/2017 | 20.0 | 19.5 | |||||||||||||
Carlyle Global Market Strategies CLO 2013-3, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($5.0 par due 7/2025) | 12.50% | 1/3/2017 | 2.8 | 2.6 | |||||||||||||
Cent CDO 12 Limited (9)(10) | Investment vehicle | Income notes ($26.4 par due 11/2020) | 10.00% | 1/3/2017 | 27.3 | 26.4 | |||||||||||||
Cent CLO 22 Limited (9)(10) | Investment vehicle | Subordinated notes ($45.4 par due 11/2026) | 10.30% | 1/3/2017 | 25.2 | 23.4 | |||||||||||||
Cent CLO 24 Limited (9)(10) | Investment vehicle | Subordinated notes ($28.0 par due 10/2026) | 10.30% | 1/3/2017 | 22.0 | 21.4 | |||||||||||||
Centurion CDO 8 Limited (9)(10) | Investment vehicle | Subordinated notes ($5.0 par due 3/2019) | 1/3/2017 | — | — | ||||||||||||||
CoLTs 2005-1 Ltd. (8)(9)(10) | Investment vehicle | Preferred shares (360 shares) | 1/3/2017 | — | — | ||||||||||||||
CoLTs 2005-2 Ltd. (8)(9)(10) | Investment vehicle | Preferred shares (34,170,000 shares) | 1/3/2017 | — | — | ||||||||||||||
CREST Exeter Street Solar 2004-1 (9)(10) | Investment vehicle | Preferred shares (3,500,000 shares) | 1/3/2017 | — | — | ||||||||||||||
Eaton Vance CDO X plc (9)(10) | Investment vehicle | Subordinated notes ($15.0 par due 2/2027) | 11.30% | 1/3/2017 | 4.7 | 5.6 | |||||||||||||
European Capital UK SME Debt LP (8)(9)(10)(26) | Investment partnership | Limited partnership interest (45% interest) | 1/3/2017 | 28.1 | 30.5 | ||||||||||||||
Flagship CLO V (9)(10) | Investment vehicle | Subordinated securities (15,000 shares) | 1/3/2017 | — | — | ||||||||||||||
GoldenTree Loan Opportunities VII, Limited (9)(10) | Investment vehicle | Subordinated notes ($35.3 par due 4/2025) | 11.50% | 1/3/2017 | 21.6 | 21.6 | |||||||||||||
Halcyon Loan Advisors Funding 2014-1 Ltd. (9)(10) | Investment vehicle | Subordinated notes ($1.3 par due 4/2026) | 19.00% | 1/3/2017 | 0.5 | 0.5 | |||||||||||||
Halcyon Loan Advisors Funding 2015-2, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($21.7 par due 7/2027) | 14.80% | 1/3/2017 | 15.4 | 14.5 | |||||||||||||
HCI Equity, LLC (8)(9)(10) | Investment company | Member interest (100.00% interest) | 4/1/2010 | — | 0.1 | ||||||||||||||
Herbert Park B.V. (9)(10) | Investment vehicle | Subordinated notes ($24.0 par due 10/2026) | 13.80% | 1/3/2017 | 19.8 | 19.7 | |||||||||||||
Imperial Capital Private Opportunities, LP (10) | Investment partnership | Limited partnership interest (80.00% interest) | 5/10/2007 | 4.1 | 16.4 | (2) | |||||||||||||
LightPoint CLO VII, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($9.0 par due 5/2021) | 1/3/2017 | — | — | ||||||||||||||
Montgomery Lane, LLC and Montgomery Lane, Ltd. (8)(9)(10) | Investment company | Common stock (100 shares) | 1/3/2017 | 2.0 | 3.7 | ||||||||||||||
Common stock (50,000 shares) | 1/3/2017 | — | — | ||||||||||||||||
2.0 | 3.7 | ||||||||||||||||||
NYLIM Flatiron CLO 2006-1 LTD. (9)(10) | Investment vehicle | Subordinated securities (10,000 shares) | 1/3/2017 | — | — |
5
As of March 31, 2017
(dollar amounts in millions)
(unaudited)
Company(1) | Business Description | Investment | Interest(6)(12) | Acquisition Date | Amortized Cost | Fair Value | Percentage of Net Assets | ||||||||||||
Octagon Investment Partners XVIII, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($16.4 par due 12/2024) | 13.30% | 1/3/2017 | 7.4 | 8.1 | |||||||||||||
Octagon Investment Partners XIX, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($25.0 par due 4/2026) | 11.50% | 1/3/2017 | 11.9 | 11.6 | |||||||||||||
OHA Credit Partners XI, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($17.8 par due 10/2028) | 11.70% | 1/3/2017 | 14.8 | 14.3 | |||||||||||||
Partnership Capital Growth Fund I, L.P. (10) | Investment partnership | Limited partnership interest (25.00% interest) | 6/16/2006 | — | 0.1 | (2) | |||||||||||||
Partnership Capital Growth Investors III, L.P. (10)(26) | Investment partnership | Limited partnership interest (2.50% interest) | 10/5/2011 | 2.5 | 3.5 | (2) | |||||||||||||
PCG-Ares Sidecar Investment II, L.P. (10)(26) | Investment partnership | Limited partnership interest (100.00% interest) | 10/31/2014 | 7.5 | 12.8 | (2) | |||||||||||||
PCG-Ares Sidecar Investment, L.P. (10)(26) | Investment partnership | Limited partnership interest (100.00% interest) | 5/22/2014 | 4.1 | 4.1 | (2) | |||||||||||||
Piper Jaffray Merchant Banking Fund I, L.P. (10)(26) | Investment partnership | Limited partnership interest (2.00% interest) | 8/16/2012 | 1.6 | 1.5 | ||||||||||||||
Qualium Investissement (9)(10) | Investment company | Class A common stock (99,000 shares) | 1/3/2017 | 7.3 | 7.0 | ||||||||||||||
Class B common stock (100,000 shares) | 1/3/2017 | 0.1 | 0.1 | ||||||||||||||||
Class C common stock (48,939 shares) | 1/3/2017 | 0.1 | — | ||||||||||||||||
7.5 | 7.1 | ||||||||||||||||||
Sapphire Valley CDO I, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($14.0 par due 12/2022) | 1/3/2017 | — | — | ||||||||||||||
Senior Direct Lending Program, LLC (8)(10)(28) | Co-investment vehicle | Subordinated certificates ($269.2 par due 12/2036) | 9.15% (Libor + 8.00%/Q)(22) | 7/27/2016 | 269.2 | 269.2 | |||||||||||||
Member interest (87.50% interest) | 7/27/2016 | — | — | ||||||||||||||||
269.2 | 269.2 | ||||||||||||||||||
Senior Secured Loan Fund LLC (8)(11)(27) | Co-investment vehicle | Subordinated certificates ($2,004.0 par due 12/2024) | 6.50% (21) | 10/30/2009 | 1,938.4 | 1,919.1 | |||||||||||||
Member interest (87.50% interest) | 10/30/2009 | — | — | ||||||||||||||||
1,938.4 | 1,919.1 | ||||||||||||||||||
Vitesse CLO, Ltd. (9)(10) | Investment vehicle | Preferred shares (20,000,000 shares) | 1/3/2017 | — | — | ||||||||||||||
Voya CLO 2014-4, Ltd. (9)(10) | Investment vehicle | Subordinated notes ($26.7 par due 10/2026) | 12.50% | 1/3/2017 | 18.1 | 17.2 | |||||||||||||
VSC Investors LLC (10) | Investment company | Membership interest (1.95% interest) | 1/24/2008 | 0.3 | 1.3 | (2) | |||||||||||||
2,519.4 | 2,520.5 | 35.89% | |||||||||||||||||
Business Services | |||||||||||||||||||
Accruent, LLC and Athena Parent, Inc. (25) | Real estate and facilities management software provider | First lien senior secured revolving loan ($0.2 par due 5/2022) | 8.25% (Base Rate + 4.25%/Q) | 5/16/2016 | 0.2 | 0.2 | (2)(20) | ||||||||||||
Second lien senior secured loan ($53.0 par due 11/2022) | 10.79% (Libor + 9.75%/Q) | 9/19/2016 | 53.0 | 53.0 | (2)(20) | ||||||||||||||
Series A preferred stock (778 shares) | 9/19/2016 | 0.8 | 0.7 | (2) | |||||||||||||||
Common stock (3,000 shares) | 5/16/2016 | 3.0 | 2.9 | (2) | |||||||||||||||
57.0 | 56.8 | ||||||||||||||||||
Acrisure, LLC, Acrisure Investors FO, LLC and Acrisure Investors SO, LLC | Retail insurance advisor and brokerage | Second lien senior secured loan ($9.7 par due 11/2024) | 10.40% (Libor + 9.25%/Q) | 11/22/2016 | 9.7 | 9.7 | (2)(20) | ||||||||||||
Second lien senior secured loan ($88.6 par due 11/2024) | 10.25% (Libor + 9.25%/Q) | 11/22/2016 | 88.6 | 88.6 | (2)(20) | ||||||||||||||
Membership interests (8,502,697 units) | 11/18/2016 | 9.7 | 9.7 | (2) | |||||||||||||||
Membership interests (2,125,674 units) | 11/18/2016 | 2.4 | 2.4 | (2) | |||||||||||||||
110.4 | 110.4 | ||||||||||||||||||
BeyondTrust Software, Inc. (25) | Management software solutions provider | First lien senior secured loan ($29.5 par due 9/2019) | 8.00% (Libor + 7.00%/Q) | 1/3/2017 | 29.1 | 29.2 | (3)(20) |
6
As of March 31, 2017
(dollar amounts in millions)
(unaudited)
Company(1) | Business Description | Investment | Interest(6)(12) | Acquisition Date | Amortized Cost | Fair Value | Percentage of Net Assets | ||||||||||||
BluePay Processing, LLC | Payment processing solutions provider | Second lien senior secured loan ($32.8 par due 8/2022) | 9.54% (Libor + 8.50%/Q) | 1/3/2017 | 32.8 | 32.8 | (2)(20) | ||||||||||||
Brandtone Holdings Limited (9) | Mobile communications and marketing services provider | First lien senior secured loan ($4.7 par due 11/2018) | 5/11/2015 | 4.5 | — | (2)(19) | |||||||||||||
First lien senior secured loan ($3.1 par due 2/2019) | 5/11/2015 | 2.9 | — | (2)(19) | |||||||||||||||
Warrant to purchase up to 184,003 units of participating convertible preferred shares (expires 8/2026) | 5/11/2015 | — | — | (2) | |||||||||||||||
7.4 | — | ||||||||||||||||||
CallMiner, Inc. | Provider of cloud-based conversational analytics solutions | Second lien senior secured loan ($1.7 par due 5/2018) | 10.55% (Libor + 9.50%/M) | 7/23/2014 | 1.7 | 1.7 | (2)(20) | ||||||||||||
Second lien senior secured loan ($1.0 par due 8/2018) | 10.55% (Libor + 9.50%/M) | 7/23/2014 | 1.0 | 1.0 | (2)(20) | ||||||||||||||
Warrant to purchase up to 2,350,636 shares of Series 1 preferred stock (expires 7/2024) | 7/23/2014 | — | — | (2) | |||||||||||||||
2.7 | 2.7 | ||||||||||||||||||
Cast & Crew Payroll, LLC | Payroll and accounting services provider to the entertainment industry | Second lien senior secured loan ($26.7 par due 8/2023) | 8.90% (Libor + 7.75%/Q) | 1/3/2017 | 26.7 | 26.7 | (2)(20) | ||||||||||||
CIBT Investment Holdings, LLC | Expedited travel document processing services | Class A shares (2,500 shares) | 12/15/2011 | 2.5 | 6.4 | (2) | |||||||||||||
Clearwater Analytics, LLC (25) | Provider of integrated cloud-based investment portfolio management, accounting, reporting and analytics software | First lien senior secured revolving loan ($1.2 par due 9/2022) | 8.50% (Libor + 7.50%/Q) | 9/1/2016 | 1.2 | 1.2 | (2)(20) | ||||||||||||
CMW Parent LLC (fka Black Arrow, Inc.) | Multiplatform media firm | Series A units (32 units) | 9/11/2015 | — | — | (2) | |||||||||||||
Columbo Midco Limited, Columbo Bidco Limited and Columbo Topco Limited (8)(9) | Compliance, accounting and tax consulting services provider | Preferred stock (34,028,135 shares) | 1/3/2017 | 2.3 | 2.6 | ||||||||||||||
Preferred stock (17,653,253 shares) | 1/3/2017 | 21.6 | 22.1 | ||||||||||||||||
Preferred stock (3,232,666 shares) | 1/3/2017 | 4.0 | 4.1 | ||||||||||||||||
27.9 | 28.8 | ||||||||||||||||||
Command Alkon, Incorporated and CA Note Issuer, LLC | Software solutions provider to the ready-mix concrete industry | Second lien senior secured loan ($10.0 par due 8/2020) | 9.25% (Libor + 8.25%/Q) | 9/28/2012 | 10.0 | 10.0 | (2)(20) | ||||||||||||
Second lien senior secured loan ($11.5 par due 8/2020) | 9.25% (Libor + 8.25%/Q) | 9/28/2012 | 11.5 | 11.5 | (2)(20) | ||||||||||||||
Second lien senior secured loan ($26.5 par due 8/2020) | 9.25% (Libor + 8.25%/Q) | 9/28/2012 | 26.5 | 26.5 | (2)(20) | ||||||||||||||
Senior subordinated loan ($24.2 par due 8/2021) | 14.00% PIK | 8/8/2014 | 24.2 | 24.2 | (2) | ||||||||||||||
72.2 | 72.2 | ||||||||||||||||||
Compusearch Software Systems, Inc. | Provider of enterprise software and services for organizations in the public sector | Second lien senior secured loan ($51.0 par due 11/2021) | 9.78% (Libor + 8.75%/Q) | 1/3/2017 | 51.0 | 51.0 | (2)(20) | ||||||||||||
Compuware Parent, LLC | Web and mobile cloud performance testing and monitoring services provider | Class A-1 common stock (4,132 units) | 12/15/2014 | 2.3 | 1.8 | (2) | |||||||||||||
Class B-1 common stock (4,132 units) | 12/15/2014 | 0.5 | 0.4 | (2) | |||||||||||||||
Class C-1 common stock (4,132 units) | 12/15/2014 | 0.3 | 0.2 | (2) | |||||||||||||||
Class A-2 common stock (4,132 units) | 12/15/2014 | — | — | (2) | |||||||||||||||
Class B-2 common stock (4,132 units) | 12/15/2014 | — | — | (2) |
7
As of March 31, 2017
(dollar amounts in millions)
(unaudited)
Company(1) | Business Description | Investment | Interest(6)(12) | Acquisition Date | Amortized Cost | Fair Value | Percentage of Net Assets | ||||||||||||
Class C-2 common stock (4,132 units) | 12/15/2014 | — | — | (2) | |||||||||||||||
3.1 | 2.4 | ||||||||||||||||||
Convergint Technologies LLC | Integrated services provider for security, fire and life safety | Second lien senior secured loan ($8.0 par due 12/2017) | 9.82% (Libor + 8.50%/Q) | 1/3/2017 | 8.0 | 8.0 | (2)(20) | ||||||||||||
Second lien senior secured loan ($11.0 par due 12/2017) | 9.92% (Libor + 8.50%/Q) | 1/3/2017 | 11.0 | 11.0 | (2)(20) | ||||||||||||||
Second lien senior secured loan ($75.0 par due 12/2020) | 9.32% (Libor + 8.00%/Q) | 1/3/2017 | 75.0 | 75.0 | (2)(20) | ||||||||||||||
94.0 | 94.0 | ||||||||||||||||||
Datapipe, Inc. | Data center provider | Second lien senior secured loan ($29.5 par due 9/2019) | 9.00% (Libor + 8.00%/Q) | 1/3/2017 | 28.4 | 28.6 | (2)(20) | ||||||||||||
Directworks, Inc. and Co-Exprise Holdings, Inc. | Provider of cloud-based software solutions for direct materials sourcing and supplier management for manufacturers | First lien senior secured loan ($1.9 par due 4/2018) | 10.34% (Libor + 9.25%/M) | 12/19/2014 | 1.9 | 1.7 | (2)(20) | ||||||||||||
Warrant to purchase up to 1,875,000 shares of Series 1 preferred stock (expires 12/2024) | 12/19/2014 | — | — | (2) | |||||||||||||||
1.9 | 1.7 | ||||||||||||||||||
DTI Holdco, Inc. and OPE DTI Holdings, Inc. (25) | Provider of legal process outsourcing and managed services | First lien senior secured loan ($4.1 par due 9/2023) | 6.29% (Libor + 5.25%/Q) | 9/23/2016 | 4.1 | 4.1 | (2)(20) | ||||||||||||
Class A common stock (7,500 shares) | 8/19/2014 | 7.5 | 6.8 | (2) | |||||||||||||||
Class B common stock (7,500 shares) | 8/19/2014 | — | — | (2) | |||||||||||||||
11.6 | 10.9 | ||||||||||||||||||
Faction Holdings, Inc. and The Faction Group LLC (fka PeakColo Holdings, Inc.) (25) | Wholesaler of cloud-based software applications and services | First lien senior secured loan ($8.0 par due 1/2021) | 10.26% (Libor + 9.25%/Q) | 1/6/2017 | 8.0 | 7.8 | (2)(20) | ||||||||||||
Warrant to purchase up to 5,185 shares of Series A preferred stock (expires 1/2027) | 1/6/2017 | — | 0.2 | (2) | |||||||||||||||
Warrant to purchase up to 1,481 shares of Series A preferred stock (expires 12/2025) | 12/3/2015 | — | 0.1 | (2) | |||||||||||||||
Warrant to purchase up to 2,037 shares of Series A preferred stock (expires 11/2024) | 11/3/2014 | 0.1 | 0.1 | (2) | |||||||||||||||
8.1 | 8.2 | ||||||||||||||||||
First Insight, Inc. | Software company providing merchandising and pricing solutions to companies worldwide | Warrant to purchase up to 122,827 units of Series C preferred stock (expires 3/2024) | 3/20/2014 | — | — | (2) | |||||||||||||
Flexera Software LLC | Provider of software and software applications that manages application usage, compliance and security risk | Second lien senior secured loan ($5.0 par due 4/2021) | 8.00% (Libor + 7.00%/Q) | 1/3/2017 | 4.8 | 4.9 | (2)(20) | ||||||||||||
GTCR Valor Companies, Inc. | Public relations software as service provider | Second lien senior secured loan ($100.0 par due 6/2024) | 10.52% (Libor + 9.50%/Q) | 1/3/2017 | 98.1 | 100.0 | (2)(20) | ||||||||||||
IfByPhone Inc. | Voice-based marketing automation software provider | Warrant to purchase up to 124,300 shares of Series C preferred stock (expires 10/2022) | 10/15/2012 | 0.1 | 0.1 | (2) | |||||||||||||
Infogix, Inc. and Infogix Parent Corporation | Enterprise data analytics and integrity software solutions provider | First lien senior secured loan ($89.8 par due 12/2021) | 7.90% (Libor + 6.75%/Q) | 1/3/2017 | 89.8 | 89.8 | (2)(17)(20) | ||||||||||||
Series A preferred stock (2,475 shares) | 1/3/2017 | 2.5 | 2.7 | ||||||||||||||||
Common stock (1,297,768 shares) | 1/3/2017 | — | 1.3 |
8
As of March 31, 2017
(dollar amounts in millions)
(unaudited)
Company(1) | Business Description | Investment | Interest(6)(12) | Acquisition Date | Amortized Cost | Fair Value | Percentage of Net Assets | ||||||||||||
92.3 | 93.8 | ||||||||||||||||||
Inmar, Inc. | Technology-driven solutions provider for retailers, wholesalers and manufacturers | Second lien senior secured loan ($20.0 par due 1/2022) | 8.15% (Libor + 7.00%/Q) | 1/3/2017 | 20.0 | 20.0 | (2)(20) | ||||||||||||
Interactions Corporation | Developer of a speech recognition software based customer interaction system | Second lien senior secured loan ($5.9 par due 3/2021) | 9.85% (Libor + 8.85%/M) | 6/16/2015 | 5.7 | 5.9 | (2)(18)(20) | ||||||||||||
Second lien senior secured loan ($19.1 par due 3/2021) | 9.85% (Libor + 8.85%/M) | 6/16/2015 | 18.9 | 19.2 | (5)(18)(20) | ||||||||||||||
Warrant to purchase up to 68,187 shares of Series G-3 convertible preferred stock (expires 6/2022) | 6/16/2015 | 0.3 | 0.3 | (2) | |||||||||||||||
24.9 | 25.4 | ||||||||||||||||||
iParadigms Holdings, LLC | Anti-plagiarism software provider to the education market | Second lien senior secured loan ($39.5 par due 7/2022) | 8.40% (Libor + 7.25%/Q) | 1/3/2017 | 38.7 | 38.7 | (2)(20) | ||||||||||||
iPipeline, Inc., Internet Pipeline, Inc. and iPipeline Holdings, Inc. (25) | Provider of SaaS-based software solutions to the insurance and financial services industry | First lien senior secured loan ($46.8 par due 8/2022) | 8.25% (Libor + 7.25%/Q) | 8/4/2015 | 46.8 | 46.8 | (3)(20) | ||||||||||||
First lien senior secured loan ($14.8 par due 8/2022) | 8.25% (Libor + 7.25%/Q) | 8/4/2015 | 14.8 | 14.8 | (4)(20) | ||||||||||||||
Preferred stock (1,485 shares) | 8/4/2015 | 1.5 | 3.1 | (2) | |||||||||||||||
Common stock (647,542 shares) | 8/4/2015 | — | — | (2) | |||||||||||||||
63.1 | 64.7 | ||||||||||||||||||
IQMS | Provider of enterprise resource planning and manufacturing execution software for small and midsized manufacturers | First lien senior secured loan ($37.8 par due 3/2022) | 9.25% (Libor + 8.25%/Q) | 3/28/2017 | 37.8 | 37.8 | (2)(20) | ||||||||||||
Iron Bow Technologies, LLC | Provider and value added reseller of information technology products and solutions | Second lien senior secured loan ($15.4 par due 2/2021) | 12.53% (Libor + 11.75%/Q) | 1/3/2017 | 15.4 | 15.4 | (2)(20) | ||||||||||||
IronPlanet, Inc. | Online auction platform provider for used heavy equipment | Warrant to purchase to up to 133,333 shares of Series C preferred stock (expires 9/2023) | 9/24/2013 | 0.2 | 0.4 | (2) | |||||||||||||
Itel Laboratories, Inc. (25) | Data services provider for building materials to property insurance industry | Preferred units (1,798,391 units) | 6/29/2012 | 1.0 | 1.4 | (2) | |||||||||||||
LLSC Holdings Corporation (dba Lawrence Merchandising Services) (8) | Marketing services provider | Series A preferred stock (9,000 shares) | 1/3/2017 | 19.2 | 19.6 | ||||||||||||||
Common stock (1,000 shares) | 1/3/2017 | — | — | ||||||||||||||||
Warrant to purchase up to 675 shares of common stock (expires 9/2017) | 1/3/2017 | — | — | ||||||||||||||||
19.2 | 19.6 | ||||||||||||||||||
Market Track Holdings, LLC | Business media consulting services company | Preferred stock (1,685 shares) | 12/13/2013 | 2.2 | 2.7 | ||||||||||||||
Common stock (16,251 shares) | 12/13/2013 | 2.2 | 5.1 | ||||||||||||||||
4.4 | 7.8 | ||||||||||||||||||
Maximus Holdings, LLC | Provider of software simulation tools and related services | Warrant to purchase up to 1,050,013 shares of common stock (expires 10/2019) | 12/13/2013 | — | 2.4 | ||||||||||||||
Miles 33 (Finance) Limited (8)(9) | Software provider to the regional media industry and magazines | First lien senior secured loan ($2.2 par due 9/2018) | 6.76% (Libor + 6.50%/Q) | 1/3/2017 | 2.1 | 2.2 | |||||||||||||
First lien senior secured loan ($3.7 par due 9/2018) | 6.76% (Libor + 6.50%/Q) | 1/3/2017 | 3.6 | 3.7 | |||||||||||||||
Senior subordinated loan ($15.7 par due 9/2021) | 4.76% (Libor + 4.50%/Q) | 1/3/2017 | 9.5 | 9.8 | |||||||||||||||
Preferred stock (19,500,000 shares) | 1/3/2017 | — | — |
9
As of March 31, 2017
(dollar amounts in millions)
(unaudited)
Company(1) | Business Description | Investment | Interest(6)(12) | Acquisition Date | Amortized Cost | Fair Value | Percentage of Net Assets | ||||||||||||
Preferred stock (900,000 shares) | 1/3/2017 | — | — | ||||||||||||||||
Common stock (600,000 shares) | 1/3/2017 | — | — | ||||||||||||||||
15.2 | 15.7 | ||||||||||||||||||
Ministry Brands, LLC and MB Parent HoldCo, L.P. (25) | Software and payment services provider to faith-based institutions | First lien senior secured revolving loan ($3.8 par due 12/2022) | 6.00% (Libor + 5.00%/Q) | 12/2/2016 | 3.8 | 3.8 | (2)(20) | ||||||||||||
Second lien senior secured loan ($16.6 par due 6/2023) | 10.25% (Libor + 9.25%/Q) | 12/2/2016 | 16.6 | 16.6 | (2)(20) | ||||||||||||||
Second lien senior secured loan ($90.0 par due 6/2023) | 10.25% (Libor + 9.25%/Q) | 12/2/2016 | 89.2 | 90.0 | (2)(20) | ||||||||||||||
Class A units (500,000 units) | 12/2/2016 | 5.0 | 5.4 | (2) | |||||||||||||||
114.6 | 115.8 | ||||||||||||||||||
Mitchell International, Inc. | Provider of mission-critical software and solutions to the property and casualty claims industry | Second lien senior secured loan ($17.0 par due 10/2021) | 8.54% (Libor + 7.50%/Q) | 1/3/2017 | 17.0 | 17.0 | (2)(20) | ||||||||||||
MVL Group, Inc. (8) | Marketing research provider | Senior subordinated loan ($0.5 par due 7/2017) | 4/1/2010 | 0.2 | 0.2 | (2)(19) | |||||||||||||
Common stock (560,716 shares) | 4/1/2010 | — | — | (2) | |||||||||||||||
0.2 | 0.2 | ||||||||||||||||||
NAS, LLC, Nationwide Marketing Group, LLC and Nationwide Administrative Services, Inc. | Buying and marketing services organization for appliance, furniture and consumer electronics dealers | Second lien senior secured loan ($24.1 par due 12/2021) | 9.75% (Libor + 8.75%/Q) | 6/1/2015 | 24.1 | 23.4 | (2)(20) | ||||||||||||
Novetta Solutions, LLC | Provider of advanced analytics solutions for the government, defense and commercial industries | First lien senior secured loan ($12.8 par due 10/2022) | 6.15% (Libor + 5.00%/Q) | 1/3/2017 | 12.3 | 12.3 | (2)(20) | ||||||||||||
Second lien senior secured loan ($31.0 par due 10/2023) | 9.65% (Libor + 8.50%/Q) | 1/3/2017 | 28.3 | 28.2 | (2)(20) | ||||||||||||||
40.6 | 40.5 | ||||||||||||||||||
Park Place Technologies, LLC | Provider of third party hardware maintenance and support services for IT data centers | Second lien senior secured loan ($41.5 par due 12/2022) | 10.11% (Libor + 9.00%/Q) | 1/3/2017 | 41.5 | 41.5 | (2)(20) | ||||||||||||
PayNearMe, Inc. | Electronic cash payment system provider | First lien senior secured loan ($10.0 par due 9/2019) | 9.50% (Libor + 8.50%/M) | 3/11/2016 | 9.6 | 10.0 | (5)(20) | ||||||||||||
Warrant to purchase up to 195,726 shares of Series E preferred stock (expires 3/2023) | 3/11/2016 | 0.2 | — | (5) | |||||||||||||||
9.8 | 10.0 | ||||||||||||||||||
Pegasus Intermediate Holdings, LLC (25) | Plant maintenance and scheduling process software provider | First lien senior secured loan ($1.3 par due 11/2022) | 7.25% (Libor + 6.25%/Q) | 11/7/2016 | 1.3 | 1.3 | (2)(20) | ||||||||||||
PHNTM Holdings, Inc. and Planview Parent, Inc. | Provider of project and portfolio management software | First lien senior secured loan ($36.9 par due 1/2023) | 6.25% (Libor + 5.25%/Q) | 1/27/2017 | 36.2 | 36.9 | (2)(20) | ||||||||||||
Second lien senior secured loan ($62.0 par due 7/2023) | 10.75% (Libor + 9.75%/Q) | 1/27/2017 | 61.1 | 62.0 | (2)(20) | ||||||||||||||
Class A common shares (990 shares) | 1/27/2017 | 1.0 | 1.0 | (2) | |||||||||||||||
Class B common shares (168,329 shares) | 1/27/2017 | — | — | (2) | |||||||||||||||
98.3 | 99.9 | ||||||||||||||||||
Pillar Processing LLC and PHL Investors, Inc. (8) | Mortgage services | Class A common stock (576 shares) | 7/31/2012 | 3.8 | — | (2) | |||||||||||||
Poplicus Incorporated | Business intelligence and market analytics platform for companies that sell to the public sector | First lien senior secured loan ($5.4 par due 1/2018) | 6/25/2015 | 4.7 | 2.9 | (5)(19) | |||||||||||||
Warrant to purchase up to 2,402,991 shares of Series C preferred stock (expires 6/2025) | 6/25/2015 | 0.1 | — | (5) | |||||||||||||||
4.8 | 2.9 |
10
As of March 31, 2017
(dollar amounts in millions)
(unaudited)
Company(1) | Business Description | Investment | Interest(6)(12) | Acquisition Date | Amortized Cost | Fair Value | Percentage of Net Assets | ||||||||||||
PowerPlan, Inc. and Project Torque Ultimate Parent Corporation | Fixed asset financial management software provider | Second lien senior secured loan ($30.0 par due 2/2023) | 10.00% (Libor + 9.00%/Q) | 2/23/2015 | 29.8 | 30.0 | (2)(20) | ||||||||||||
Second lien senior secured loan ($50.0 par due 2/2023) | 10.00% (Libor + 9.00%/Q) | 2/23/2015 | 49.6 | 50.0 | (3)(20) | ||||||||||||||
Class A common stock (1,980 shares) | 2/23/2015 | 2.0 | 3.1 | (2) | |||||||||||||||
Class B common stock (989,011 shares) | 2/23/2015 | — | — | (2) | |||||||||||||||
81.4 | 83.1 | ||||||||||||||||||
Powersport Auctioneer Holdings, LLC | Powersport vehicle auction operator | Common units (1,972 units) | 3/2/2012 | 1.0 | 1.1 | (2) | |||||||||||||
Professional Datasolutions, Inc. (25) | Provider of enterprise management software for the convenience retail and petroleum wholesale markets | First lien senior secured loan ($9.4 par due 5/2022) | 6.50% (Libor + 5.50%/Q) | 3/30/2017 | 9.4 | 9.4 | (2)(20) | ||||||||||||
Project Alpha Intermediate Holding, Inc. and Qlik Parent, Inc. | Provider of data visualization software for data analytics | First lien senior secured loan ($50.2 par due 8/2022) | 9.25% (Libor + 8.25%/Q) | 8/22/2016 | 49.6 | 50.2 | (2)(20) | ||||||||||||
First lien senior secured loan ($59.7 par due 8/2022) | 9.25% (Libor + 8.25%/Q) | 8/22/2016 | 58.9 | 59.7 | (3)(20) | ||||||||||||||
First lien senior secured loan ($19.9 par due 8/2022) | 9.25% (Libor + 8.25%/Q) | 8/22/2016 | 19.6 | 19.9 | (4)(20) | ||||||||||||||
Class A common shares (7,445 shares) | 8/22/2016 | 7.4 | — | (2) | |||||||||||||||
Class B common shares (1,841,609 shares) | 8/22/2016 | 0.1 | 10.6 | (2) | |||||||||||||||
135.6 | 140.4 | ||||||||||||||||||
R2 Acquisition Corp. | Marketing services | Common stock (250,000 shares) | 5/29/2007 | 0.3 | 0.2 | (2) | |||||||||||||
Rocket Fuel Inc. | Provider of open and integrated software for digital marketing optimization | Common stock (11,405 units) | 9/9/2014 | — | — | (2) | |||||||||||||
Shift PPC LLC (25) | Digital solutions provider | First lien senior secured loan ($10.2 par due 12/2021) | 7.00% (Libor + 6.00%/Q) | 12/22/2016 | 10.2 | 10.2 | (2)(20) | ||||||||||||
Sonian Inc. | Cloud-based email archiving platform | First lien senior secured loan ($7.5 par due 6/2020) | 9.08% (Libor + 7.65%/M) | 9/9/2015 | 7.4 | 7.5 | (5)(18)(20) | ||||||||||||
Warrant to purchase up to 169,045 shares of Series C preferred stock (expires 9/2022) | 9/9/2015 | 0.1 | 0.1 | (5) | |||||||||||||||
7.5 | 7.6 | ||||||||||||||||||
Sparta Systems, Inc. and Project Silverback Holdings Corp. | Provider of quality management software | First lien senior secured loan ($3.9 par due 7/2020) | 6.65% (Libor + 5.50%/Q) | 1/3/2017 | 3.9 | 3.9 | (3)(20) | ||||||||||||
First lien senior secured loan ($20.0 par due 7/2020) | 6.65% (Libor + 5.50%/Q) | 1/3/2017 | 20.0 | 20.0 | (4)(20) | ||||||||||||||
Series A preferred stock (743 shares) | 1/3/2017 | 0.9 | 0.9 | ||||||||||||||||
Class B common stock (308,224 shares) | 1/3/2017 | 0.9 | 0.9 | ||||||||||||||||
25.7 | 25.7 | ||||||||||||||||||