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EX-32.1 - EXHIBIT 32.1 - Sierra Income Corpex321.htm
EX-31.2 - EXHIBIT 31.2 - Sierra Income Corpex312.htm
EX-31.1 - EXHIBIT 31.1 - Sierra Income Corpex311.htm

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_____________________________________________________
Form 10-Q
 ____________________________________________________
x
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 from              to             
Commission file number: 814-00924
 _____________________________________________________
Sierra Income Corporation
(Exact Name of Registrant as Specified in its Charter)
 _____________________________________________________
Maryland
 
45-2544432
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
280 Park Avenue, 6th Floor East, New York, NY 10017
(Address of Principal Executive Offices)
(212) 759-0777
(Registrant’s Telephone Number, Including Area Code)
  ___________________________________________________

(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  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T 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:
Large accelerated filer
o
  
Accelerated filer
o
Non-accelerated filer (Do not check if a smaller reporting company)
x
 
Smaller reporting company
o
Emerging growth company
x
 
 
 
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 13(a) of the Exchange Act. x
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  o    No  x

As of May 8, 2017, the Registrant had 96,835,276 shares of common stock, $0.001 par value, outstanding.
 
 
 
 
 



TABLE OF CONTENTS
 
Part I. Financial Information
 
Part II. Other Information
 





Sierra Income Corporation
Consolidated Statements of Assets and Liabilities
 
 
As of
 
 
March 31, 2017
 
December 31, 2016
ASSETS
 
(unaudited)
 
 
Investments at fair value
 
 
 
 
Non-controlled/non-affiliated investments (amortized cost of $938,890,614 and $921,626,572, respectively)
 
$
909,381,097

 
$
885,400,856

Controlled/affiliated investments (amortized cost of $130,897,334 and $104,855,866, respectively)
 
122,668,859

 
97,743,466

Total investments at fair value
 
1,032,049,956

 
983,144,322

Cash and cash equivalents
 
52,449,388

 
99,400,794

Cash collateral on total return swap (Note 5)
 
88,800,000

 
79,620,942

Interest receivable from non-controlled/non-affiliated investments
 
8,350,433

 
10,251,559

Due from affiliate (Note 7)
 
6,642,273

 
7,892,273

Receivable due on total return swap (Note 5)
 
1,167,521

 
1,289,163

Interest receivable from controlled/affiliated investments
 
495,360

 
1,028,321

Receivable for Company shares sold
 
426,000

 
533,123

Unsettled trades receivable
 
9,695,905

 
368,819

Prepaid expenses and other assets
 
192,916

 
201,932

Total assets
 
$
1,200,269,752

 
$
1,183,731,248

 
 
 
 
 
LIABILITIES
 
 
 
 
Revolving credit facilities payable (net of deferred financing costs of $4,012,063 and $4,340,533, respectively) (Note 6)
 
$
395,987,937

 
$
385,659,467

Unrealized depreciation on total return swap (Note 5)
 
13,751,686

 
13,647,330

Base Management fee payable (Note 7)
 
5,208,569

 
5,138,107

Accounts payable and accrued expenses
 
1,427,606

 
1,839,497

Incentive fees payable (Note 7)
 
548,805

 
1,405,419

Interest payable
 
826,172

 
1,230,530

Administrator fees payable
 
793,529

 
850,678

Unsettled trades payable
 
1,840,000

 
466,727

Deferred tax liability
 
542,194

 
244,622

Due to affiliate (Note 7)
 

 
135,784

Total liabilities
 
$
420,926,498

 
$
410,618,161

 
 
 
 
 
Commitments (Note 11)
 
 
 
 
 
 
 
 
 
NET ASSETS
 
 
 
 
Common shares, par value $0.001 per share, 250,000,000 common shares authorized, 96,265,797 and 94,666,418 common shares issued and outstanding, respectively
 
$
96,266

 
$
94,666

Capital in excess of par value
 
843,764,988

 
830,738,206

Accumulated distribution in excess of net realized gain/(loss) from investments and total return swap
 
(30,808,034
)
 
(20,333,057
)
Accumulated undistributed net investment income
 
18,235,306

 
19,756,740

Net unrealized depreciation on investments and total return swap, net of provision for taxes of $297,572 and $54,205, respectively
 
(51,945,272
)
 
(57,143,468
)
Total net assets
 
779,343,254

 
773,113,087

Total liabilities and net assets
 
$
1,200,269,752

 
$
1,183,731,248

 
 
 
 
 
NET ASSET VALUE PER COMMON SHARE
 
$
8.10

 
$
8.17

See accompanying notes to the consolidated financial statements.

F-1


Sierra Income Corporation
Consolidated Statements of Operations
 
 
Three Months Ended
March 31,
 
 
2017
 
2016
INVESTMENT INCOME
 
(unaudited)
 
(unaudited)
Interest from investments
 
 
 
 
Non-controlled/non-affiliated investments:
 
 
 
 
Cash
 
$
19,715,289

 
$
19,320,321

Payment-in-kind
 
1,815,049

 
1,572,630

Controlled/affiliated investments:
 
 
 
 
Cash
 
2,432,801

 
931,000

Payment-in-kind
 
64,598

 

Total interest income
 
24,027,737

 
21,823,951

Fee income (Note 12)
 
2,190,200

 
1,395,212

Interest from cash and cash equivalents
 
12,654

 
7,342

Total investment income
 
26,230,591

 
23,226,505

EXPENSES
 
 
 
 
Base management fee
 
5,208,569

 
4,797,629

Interest and financing expenses
 
3,596,864

 
3,440,717

Incentive fee
 
548,806

 
2,271,763

General and administrative expenses
 
1,229,349

 
1,489,963

Administrator expenses
 
793,529

 
583,206

Offering costs
 
521,684

 
763,199

Professional fees
 
586,043

 
563,220

Organizational and offering costs reimbursed to Affiliate (Note 7)
 

 

Total expenses
 
12,484,844

 
13,909,697

Net expense support reimbursement (Note 7)
 

 
(5,204,896
)
Net expenses
 
12,484,844

 
8,704,801

NET INVESTMENT INCOME
 
13,745,747

 
14,521,704

REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
 
 
 
 
Net realized gain/(loss) from non-controlled/non-affiliated investments
 
(13,194,328
)
 
69,938

Net realized gain on total return swap (Note 5)
 
2,719,351

 
2,429,912

Net change in unrealized appreciation/(depreciation) on non-controlled/non-affiliated investments
 
6,716,199

 
(7,971,840
)
Net change in unrealized appreciation/(depreciation) on controlled/affiliated investments
 
(1,116,075
)
 
(27,098
)
Net change in unrealized appreciation/(depreciation) on total return swap (Note 5)
 
(104,356
)
 
(2,675,311
)
Change in provision for deferred taxes on unrealized gain/(loss) on investments
 
(297,572
)
 
(72,585
)
Net gain/(loss) on investments
 
(5,276,781
)
 
(8,246,984
)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
 
$
8,468,966

 
$
6,274,720

WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE
 
$
0.09

 
$
0.07

WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE
 
$
0.14

 
$
0.17

WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (Note 10)
 
95,382,267

 
84,845,431

DISTRIBUTIONS DECLARED PER COMMON SHARE
 
$
0.16

 
$
0.20

See accompanying notes to the consolidated financial statements.

F-2


Sierra Income Corporation
Consolidated Statements of Changes in Net Assets
 
Three Months Ended
March 31,
 
2017
 
2016
INCREASE/(DECREASE) FROM OPERATIONS
(unaudited)
 
(unaudited)
Net investment income
$
13,745,747

 
$
14,521,704

Net realized gain/(loss) on investments
(13,194,328
)
 
69,938

Net realized gain on total return swap (Note 5)
2,719,351

 
2,429,912

Net change in unrealized appreciation/(depreciation) on investments
5,600,124

 
(7,998,938
)
Net change in unrealized appreciation/(depreciation) on total return swap (Note 5)
(104,356
)
 
(2,675,311
)
Change in provision for deferred taxes on unrealized gain on investments
(297,572
)
 
(72,585
)
Net increase/(decrease) in net assets resulting from operations
8,468,966

 
6,274,720

SHAREHOLDER DISTRIBUTIONS
 
 
 
Distributions from net investment income (Note 2)
(15,267,181
)
 
(17,021,554
)
Distributions from return of capital (Note 2)

 

Distributions from net realized gains

 

Net decrease in net assets from shareholder distributions
(15,267,181
)
 
(17,021,554
)
COMMON SHARE TRANSACTIONS
 
 
 
Issuance of common shares, net of underwriting costs
6,071,081

 
31,597,060

Issuance of common shares pursuant to distribution reinvestment plan
7,085,971

 
8,083,797

Repurchase of common shares
(128,670
)
 

Net increase in net assets resulting from common share transactions
13,028,382

 
39,680,857

Total increase in net assets
6,230,167

 
28,934,023

Net assets at beginning of period
773,113,087

 
674,124,099

Net assets at end of period(1)
$
779,343,254

 
$
703,058,122

 
 
 
 
Net asset value per common share
$
8.10

 
$
8.04

Common shares outstanding, beginning of period
94,666,418

 
82,623,649

Issuance of common shares
743,698

 
3,867,185

Issuance of common shares pursuant to distribution reinvestment plan
871,436

 
990,727

Repurchase of common shares
(15,755
)
 

Common shares outstanding, end of period
96,265,797

 
87,481,561

(1)
Net assets at end of period include accumulated undistributed net investment income of $18,235,306 and $18,678,496 for three months ended March 31, 2017 and 2016, respectively.
See accompanying notes to the consolidated financial statements.

F-3


Sierra Income Corporation
Consolidated Statements of Cash Flows
 
 
Three Months Ended March 31,
 
 
2017
 
2016
 
 
(unaudited)
 
(unaudited)
Cash flows from operating activities
 
 
 
 
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
 
$
8,468,966

 
$
6,274,720

ADJUSTMENT TO RECONCILE NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS TO NET CASH USED IN OPERATING ACTIVITIES:
 
 
 
 
Payment-in-kind interest income
 
(1,879,647
)
 
(1,572,630
)
Net amortization of premium on investments
 
(305,936
)
 
(169,352
)
Amortization of deferred financing costs
 
347,220

 
313,470

Net realized (gain)/loss on investments
 
13,194,328

 
(69,938
)
Net change in unrealized (appreciation)/depreciation on investments
 
(5,600,124
)
 
7,998,938

Net change in unrealized (appreciation)/depreciation on total return swap (Note 5)
 
104,356

 
2,675,311

Purchases and originations
 
(100,087,565
)
 
(79,189,827
)
Proceeds from sale of investments and principal repayments
 
45,773,310

 
48,385,707

(Increase)/decrease in operating assets:
 
 
 
 
Cash collateral on total return swap (Note 5)
 
(9,179,058
)
 
(5,900,000
)
Unsettled trades receivable
 
(9,327,086
)
 
(59,007
)
Due from affiliate (Note 7)
 
1,250,000

 
(2,104,897
)
Interest receivable from non-controlled/non-affiliated investments
 
1,901,126

 
786,114

Interest receivable from controlled/affiliated investments
 
532,961

 

Receivable for Company shares sold
 
107,123

 

Receivable due on total return swap (Note 5)
 
121,642

 
(393,945
)
Prepaid expenses and other assets
 
9,016

 
66,949

Increase/(decrease) in operating liabilities:
 
 
 
 
Unsettled trades payable
 
1,373,273

 
22,587,078

Management fee payable
 
70,462

 
111,533

Accounts payable and accrued expenses
 
(411,891
)
 
(578,266
)
Incentive fees payable
 
(856,614
)
 
476,495

Administrator fees payable
 
(57,149
)
 
65,276

Interest payable
 
(404,358
)
 
254,292

Deferred tax liability
 
297,572

 
72,585

Due to affiliate (Note 7)
 
(135,784
)
 
(695,533
)
NET CASH USED IN OPERATING ACTIVITIES
 
(54,693,857
)
 
(664,927
)
Cash flows from financing activities:
 
 
 
 
Borrowings under revolving credit facility
 
60,000,000

 

Repayments of revolving credit facility
 
(50,000,000
)
 
(25,000,000
)
Proceeds from issuance of common stock, net of underwriting costs
 
6,071,081

 
31,597,060

Payment of cash distributions
 
(8,181,210
)
 
(8,937,757
)
Financing costs paid
 
(18,750
)
 
(18,750
)
Repurchase of common shares
 
(128,670
)
 

NET CASH PROVIDED BY FINANCING ACTIVITIES
 
7,742,451

 
(2,359,447
)
TOTAL INCREASE IN CASH
 
(46,951,406
)
 
(3,024,374
)
CASH AT BEGINNING OF PERIOD
 
99,400,794

 
93,658,142

CASH AT END OF PERIOD
 
$
52,449,388

 
$
90,633,768

Supplemental Information:
 
 
 
 
Cash paid during the year for interest
 
$
4,001,222

 
$
3,186,425

Supplemental non-cash information:
 
 
 
 
Non-cash purchase of investments
 
$
13,231,240

 
$

Non-cash sale of investments
 
13,231,240

 

Payment-in-kind interest income
 
1,879,647

 
1,572,630

Amortization of deferred financing costs
 
347,220

 
313,470

Net amortization of premium on investments
 
305,939

 
169,352

Issuance of common shares in connection with distribution reinvestment plan
 
7,085,971

 
8,083,797


See accompanying notes to the consolidated financial statements.

F-4


Sierra Income Corporation
Consolidated Schedule of Investments
As of March 31, 2017
(unaudited)
Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of
Net Assets
(2)
Non-controlled/non-affiliated investments – 116.7%
 
 
 
 
 
 
 
 
 
 
AAAHI Acquisition Corporation
 
Transportation:  Consumer
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor(3) (4)
 
12/15/2021
 
$
7,234,872

 
$
7,234,872

 
$
7,234,872

 
0.9%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor(3) (4) (5)
 
12/14/2018
 
97,663

 
97,663

 
97,663

 
0.0%
 
 
 
 
 
 
 
 
7,332,535

 
7,332,535

 
7,332,535

 
 
AAR Intermediate Holdings, LLC
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor(3) (4) (5)
 
9/30/2021
 
251,558

 
251,558

 
251,558

 
0.0%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor(3) (4)
 
9/30/2021
 
3,144,481

 
3,144,481

 
3,144,481

 
0.4%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor, PIK(3) (4)
 
9/30/2021
 
6,755,019

 
5,597,023

 
6,315,943

 
0.8%
 
 
 
 
Membership Units (4) (6) (7)
 
 
 

 

 

 
0.0%
 
 
 
 
 
 
 
 
10,151,058

 
8,993,062

 
9,711,982

 
 
Advanced Diagnostic Holdings, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan LIBOR + 8.750%, 0.875% Floor(3) (4)
 
12/11/2020
 
14,970,966

 
14,970,966

 
15,270,384

 
2.0%
 
 
 
 
 
 
 
 
14,970,966

 
14,970,966

 
15,270,384

 
 
Alpha Media LLC
 
Media:  Broadcasting & Subscription
 
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor(8)
 
2/25/2022
 
6,825,765

 
6,559,392

 
6,673,619

 
0.9%
 
 
 
 
 
 
 
 
6,825,765

 
6,559,392

 
6,673,619

 
 
American Dental Partners, Inc.
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor(3) (4)
 
9/25/2023
 
7,250,000

 
7,250,000

 
7,250,000

 
0.9%
 
 
 
 
 
 
 
 
7,250,000

 
7,250,000

 
7,250,000

 
 
Amerijet Holdings, Inc.
 
Transportation:  Cargo
 
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor(3) (4)
 
7/15/2021
 
15,881,250

 
15,881,250

 
16,066,425

 
2.1%
 
 
 
 
 
 
 
 
15,881,250

 
15,881,250

 
16,066,425

 
 
AMMC CLO 17, Limited Series 2015-17A
 
Multi-Sector Holdings
 
Subordinated Note 18.501% effective yield(1) (6) (9) (10)
 
11/15/2027
 
5,000,000

 
3,519,589

 
3,895,250

 
0.5%
 
 
 
 
 
 
 
 
5,000,000

 
3,519,589

 
3,895,250

 
 
Anaren, Inc.
 
Aerospace & Defense
 
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor(3)
 
8/18/2021
 
10,000,000

 
9,932,639

 
10,000,000

 
1.3%
 
 
 
 
 
 
 
 
10,000,000

 
9,932,639

 
10,000,000

 
 
Answers Corporation
 
High Tech Industries
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor(5) (8) (11)
 
9/8/2017
 
548,014

 
548,014

 
548,014

 
0.1%
 
 
 
 
 
 
 
 
548,014

 
548,014

 
548,014

 
 
APCO Holdings, Inc.
 
Automotive
 
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor(4) (8)
 
1/31/2022
 
4,266,182

 
4,157,983

 
4,266,182

 
0.5%
 
 
 
 
 
 
 
 
4,266,182

 
4,157,983

 
4,266,182

 
 
Apidos CLO XXIV, Series 2016-24A
 
Multi-Sector Holdings
 
Subordinated Note 13.809% effective yield(1) (4) (6) (9) (10)
 
7/20/2027
 
21,763,518

 
17,559,895

 
16,723,087

 
2.1%
 
 
 
 
 
 
 
 
21,763,518

 
17,559,895

 
16,723,087

 
 
Asurion, LLC
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured Second Lien Term Loan LIBOR + 7.500%, 1.000% Floor(3) (11)
 
3/3/2021
 
7,000,000

 
6,953,611

 
7,000,000

 
0.9%
 
 
 
 
 
 
 
 
7,000,000

 
6,953,611

 
7,000,000

 
 
Aviation Technical Services, Inc.
 
Aerospace & Defense
 
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor(3) (4) (12)
 
3/31/2022
 
25,000,000

 
25,000,000

 
25,250,000

 
3.2%
 
 
 
 
 
 
 
 
25,000,000

 
25,000,000

 
25,250,000

 
 

F-5


Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of
Net Assets
(2)
Backcountry.com, LLC
 
Retail
 
Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.000% Floor(3) (4) (12)
 
6/30/2020
 
29,739,618

 
29,739,618

 
30,037,014

 
3.9%
 
 
 
 
 
 
 
 
29,739,618

 
29,739,618

 
30,037,014

 
 
Birch Communications, Inc.
 
Telecommunications
 
Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.000% Floor(4) (8)
 
7/17/2020
 
13,628,612

 
13,458,082

 
13,536,482

 
1.7%
 
 
 
 
 
 
 
 
13,628,612

 
13,458,082

 
13,536,482

 
 
Black Angus Steakhouses LLC
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor(4) (5) (8) (12)
 
4/24/2020
 
669,643

 
669,643

 
496,964

 
0.1%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor(4) (8) (12)
 
4/24/2020
 
19,508,929

 
19,508,929

 
18,765,638

 
2.4%
 
 
 
 
 
 
 
 
20,178,572

 
20,178,572

 
19,262,602

 
 
Brundage-Bone Concrete Pumping, Inc.
 
Construction & Building
 
Senior Secured First Lien Note 10.375%(9)
 
9/1/2021
 
7,500,000

 
7,603,205

 
8,061,600

 
1.0%
 
 
 
 
 
 
 
 
7,500,000

 
7,603,205

 
8,061,600

 
 
Charming Charlie LLC
 
Retail
 
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor(3)
 
12/24/2019
 
7,908,765

 
7,919,956

 
6,448,886

 
0.8%
 
 
 
 
 
 
 
 
7,908,765

 
7,919,956

 
6,448,886

 
 
ConvergeOne Holdings Corp.
 
Telecommunications
 
Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor(3) (4) (11)
 
6/17/2021
 
12,500,000

 
12,414,828

 
12,500,000

 
1.6%
 
 
 
 
 
 
 
 
12,500,000

 
12,414,828

 
12,500,000

 
 
Cornerstone Chemical Company
 
Chemicals, Plastics & Rubber
 
Senior Secured First Lien Note 9.375%(9) (13)
 
3/15/2018
 
4,970,000

 
4,893,285

 
4,970,000

 
0.6%
 
 
 
 
 
 
 
 
4,970,000

 
4,893,285

 
4,970,000

 
 
CP Opco, LLC
 
Services:  Consumer
 
Revolver LIBOR + 4.500%, 1.000% Floor(3) (4) (5)
 
3/31/2019
 
338,974

 
338,974

 
338,974

 
0.0%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor, PIK(3) (4)
 
4/28/2017
 
20,486

 
20,486

 
20,486

 
0.0%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor, PIK(3) (4)
 
3/31/2019
 
728,334

 
728,334

 
728,334

 
0.1%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK(3) (4) (14)
 
3/31/2019
 
1,526,410

 
717,016

 
763,205

 
0.1%
 
 
 
 
Preferred Units LIBOR + 9.500%, 1.000% Floor, PIK(4)(14)
 
3/31/2019
 

 

 

 
0.0%
 
 
 
 
Common Units (4) (7)
 
 
 

 

 

 
0.0%
 
 
 
 
 
 
 
 
2,614,204

 
1,804,810

 
1,850,999

 
 
DHISCO Electronic Distribution, Inc.
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.500% Floor(4) (8)
 
11/10/2019
 
2,380,952

 
2,380,952

 
2,380,952

 
0.3%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.500% Floor, PIK(4) (8)
 
11/10/2019
 
8,669,099

 
8,669,099

 
8,669,099

 
1.1%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 10.250%, 1.500% Floor, PIK(4) (8) (14)
 
11/10/2019
 
7,465,518

 
7,257,481

 
3,732,759

 
0.5%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 11.250%, 1.500% Floor, PIK(4) (8) (14)
 
11/10/2019
 
6,971,237

 
2,940,892

 

 
0.0%
 
 
 
 
Common Units, Class A (4) (7)
 
 
 

 
769,231

 

 
0.0%
 
 
 
 
 
 
 
 
25,486,806

 
22,017,655

 
14,782,810

 
 
Drew Marine Partners, LP
 
Transportation:  Cargo
 
Senior Secured Second Lien Term Loan LIBOR + 7.000%, 1.000% Floor(3)
 
5/19/2021
 
10,000,000

 
10,051,480

 
9,872,800

 
1.3%
 
 
 
 
 
 
 
 
10,000,000

 
10,051,480

 
9,872,800

 
 
Dryden 38 Senior Loan Fund - Series 2015-38A
 
Multi-Sector Holdings
 
Subordinated Note 16.680% effective yield (1) (6) (9) (10)
 
7/15/2027
 
7,000,000

 
4,979,061

 
4,989,600

 
0.6%
 
 
 
 
 
 
 
 
7,000,000

 
4,979,061

 
4,989,600

 
 
Dryden 43 Senior Loan Fund - Series 2016-43A
 
Multi-Sector Holdings
 
Subordinated Note 14.828% effective yield (1) (4) (6) (9) (10)
 
7/20/2029
 
3,620,000

 
2,932,200

 
2,946,499

 
0.4%

F-6


Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of
Net Assets
(2)
 
 
 
 
 
 
 
 
3,620,000

 
2,932,200

 
2,946,499

 
 
Dryden 49 Senior Loan Fund
 
Multi-Sector Holdings
 
Preferred Shares (1) (4) (6)
 
 
 

 
14,500,000

 
14,700,825

 
1.9%
 
 
 
 
 
 
 
 

 
14,500,000

 
14,700,825

 
 
Dynamic Energy Services International LLC
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan 13.500% PIK + LIBOR(4)(8) 
 
3/6/2018
 
8,961,005

 
8,961,005

 
7,627,697

 
1.0%
 
 
 
 
 
 
 
 
8,961,005

 
8,961,005

 
7,627,697

 
 
Elite Comfort Solutions LLC
 
Chemicals, Plastics & Rubber
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor(3) (5)
 
1/15/2021
 
8,802,721

 
8,802,721

 
8,802,721

 
1.1%
 
 
 
 
 
 
 
 
8,802,721

 
8,802,721

 
8,802,721

 
 
First Boston Construction Holdings, LLC
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured First Lien Note 12.000%(4) (5)
 
12/31/2020
 
6,105,000

 
6,105,000

 
6,105,000

 
0.8%
 
 
 
 
Preferred Equity (4) (7)
 
 
 

 
1,526,250

 
1,526,250

 
0.2%
 
 
 
 
 
 
 
 
6,105,000

 
7,631,250

 
7,631,250

 
 
FKI Security Group, LLC
 
Capital Equipment
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor(3) (4)
 
3/30/2020
 
11,843,750

 
11,843,750

 
11,843,750

 
1.5%
 
 
 
 
 
 
 
 
11,843,750

 
11,843,750

 
11,843,750

 
 
Friedrich Holdings, Inc.
 
Construction & Building
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor(4) (8)
 
2/7/2023
 
13,806,751

 
13,806,751

 
13,806,751

 
1.8%
 
 
 
 
 
 
 
 
13,806,751

 
13,806,751

 
13,806,751

 
 
Frontier Communications Corp.
 
Telecommunications
 
Senior Secured First Lien Note 10.500%(6) (9)
 
9/15/2022
 
2,000,000

 
2,000,000

 
2,022,500

 
0.3%
 
 
 
 
 
 
 
 
2,000,000

 
2,000,000

 
2,022,500

 
 
Genex Holdings, Inc.
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor (3) (11)
 
5/30/2022
 
9,500,000

 
9,524,184

 
9,500,000

 
1.2%
 
 
 
 
 
 
 
 
9,500,000

 
9,524,184

 
9,500,000

 
 
GK Holdings, Inc.
 
Services:  Business
 
Senior Secured Second Lien Term Loan LIBOR + 10.250%, 1.000% Floor(3)
 
1/20/2022
 
10,000,000

 
10,000,000

 
10,100,000

 
1.3%
 
 
 
 
 
 
 
 
10,000,000

 
10,000,000

 
10,100,000

 
 
Green Field Energy Services, Inc.
 
Energy:  Oil & Gas
 
Senior Secured First Lien Note 13.000%(4) (9) (14)
 
11/15/2016
 
766,616

 
754,615

 
122,658

 
0.0%
 
 
 
 
Warrants (4) (7)
 
 
 

 
29,000

 

 
0.0%
 
 
 
 
 
 
 
 
766,616

 
783,615

 
122,658

 
 
HBC Holdings LLC
 
Wholesale
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor(3) (4)
 
3/30/2020
 
12,937,500

 
12,937,500

 
12,329,826

 
1.6%
 
 
 
 
 
 
 
 
12,937,500

 
12,937,500

 
12,329,826

 
 
Heligear Acquisition Co.
 
Aerospace & Defense
 
Senior Secured First Lien Note 10.250%(4) (9)
 
10/15/2019
 
15,000,000

 
15,000,000

 
15,826,500

 
2.0%
 
 
 
 
 
 
 
 
15,000,000

 
15,000,000

 
15,826,500

 
 
High Ridge Brands Co.
 
Consumer Goods:  Non-Durable
 
Senior Secured First Lien Note 8.875%(9)
 
3/15/2025
 
2,000,000

 
2,000,000

 
2,000,000

 
0.3%
 
 
 
 
 
 
 
 
2,000,000

 
2,000,000

 
2,000,000

 
 
Hill International, Inc.
 
Construction & Building
 
Senior Secured First Lien Term Loan LIBOR + 6.750%, 1.000% Floor(4) (8) (12)
 
9/28/2020
 
16,575,000

 
16,575,000

 
16,575,000

 
2.1%
 
 
 
 
 
 
 
 
16,575,000

 
16,575,000

 
16,575,000

 
 
Holland Acquisition Corp.
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor(3)
 
5/29/2018
 
4,515,605

 
4,487,372

 
3,216,510

 
0.4%
 
 
 
 
 
 
 
 
4,515,605

 
4,487,372

 
3,216,510

 
 
Hylan Datacom & Electrical LLC
 
Construction & Building
 
Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor(3) (4)
 
7/25/2021
 
15,699,793

 
15,699,793

 
15,877,672

 
2.0%
 
 
 
 
 
 
 
 
15,699,793

 
15,699,793

 
15,877,672

 
 
Ignite Restaurant Group, Inc.
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor(3)
 
2/13/2019
 
8,364,050

 
8,302,358

 
7,583,266

 
1.0%
 
 
 
 
 
 
 
 
8,364,050

 
8,302,358

 
7,583,266

 
 

F-7


Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of
Net Assets
(2)
IHS Intermediate, Inc.
 
Services:  Business
 
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor(3)
 
7/20/2022
 
25,000,000

 
25,000,000

 
24,973,000

 
3.2%
 
 
 
 
 
 
 
 
25,000,000

 
25,000,000

 
24,973,000

 
 
Impact Sales, LLC
 
Services:  Business
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor(3) (4) (5)
 
12/30/2021
 
4,890,625

 
4,890,625

 
4,890,625

 
0.6%
 
 
 
 
 
 
 
 
4,890,625

 
4,890,625

 
4,890,625

 
 
Interface Security Systems Holdings, Inc.
 
Services:  Consumer
 
Senior Secured First Lien Note 9.250%(9)
 
1/15/2018
 
3,417,000

 
3,430,300

 
3,395,644

 
0.4%
 
 
 
 
 
 
 
 
3,417,000

 
3,430,300

 
3,395,644

 
 
Invision Diversified, LLC
 
Services:  Business
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor(3) (4) (12)
 
6/30/2020
 
24,178,935

 
24,178,935

 
24,662,514

 
3.2%
 
 
 
 
 
 
 
 
24,178,935

 
24,178,935

 
24,662,514

 
 
Isola USA Corp.
 
High Tech Industries
 
Senior Secured First Lien Term Loan LIBOR + 8.250%, 1.000% Floor (3) (11)
 
11/29/2018
 
5,418,190

 
5,467,852

 
5,049,699

 
0.6%
 
 
 
 
 
 
 
 
5,418,190

 
5,467,852

 
5,049,699

 
 
Jordan Reses Supply Company, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan LIBOR + 11.000%, 1.000% Floor(3) (4)
 
4/24/2020
 
5,000,000

 
5,000,000

 
5,050,000

 
0.6%
 
 
 
 
 
 
 
 
5,000,000

 
5,000,000

 
5,050,000

 
 
L&S Plumbing Partnership, Ltd.
 
Construction & Building
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor(3) (4)
 
2/15/2022
 
12,265,625

 
12,265,625

 
12,265,625

 
1.6%
 
 
 
 
 
 
 
 
12,265,625

 
12,265,625

 
12,265,625

 
 
Liquidnet Holdings, Inc.
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured First Lien Term Loan LIBOR + 6.750%, 1.000% Floor(3)
 
5/22/2019
 
6,037,500

 
5,992,958

 
6,072,578

 
0.8%
 
 
 
 
 
 
 
 
6,037,500

 
5,992,958

 
6,072,578

 
 
Livingston International Inc.
 
Transportation:  Cargo
 
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.250% Floor(3) (6) (11)
 
4/17/2020
 
2,658,504

 
2,655,705

 
2,562,772

 
0.3%
 
 
 
 
 
 
 
 
2,658,504

 
2,655,705

 
2,562,772

 
 
Loar Group Inc.
 
Aerospace & Defense
 
Senior Secured Second Lien Term Loan LIBOR + 9.250%, 1.000% Floor(8)
 
7/12/2022
 
15,000,000

 
15,000,000

 
15,300,000

 
2.0%
 
 
 
 
 
 
 
 
15,000,000

 
15,000,000

 
15,300,000

 
 
LSF9 Atlantis Holdings, LLC
 
Retail
 
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor(3) (4)
 
1/15/2021
 
9,500,000

 
9,423,406

 
9,629,675

 
1.2%
 
 
 
 
 
 
 
 
9,500,000

 
9,423,406

 
9,629,675

 
 
LTCG Holdings Corp.
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor(3)
 
6/6/2020
 
2,838,571

 
2,830,334

 
2,698,005

 
0.3%
 
 
 
 
 
 
 
 
2,838,571

 
2,830,334

 
2,698,005

 
 
Magnetite XIX, Limited
 
Multi-Sector Holdings
 
Equity/Warrant (1) (4) (6)
 
 
 

 
8,166,667

 
8,166,667

 
1.0%
 
 
 
 
 
 
 
 

 
8,166,667

 
8,166,667

 
 
Nathan's Famous, Inc.
 
Beverage & Food
 
Senior Secured First Lien Note 10.000%(13)
 
3/15/2020
 
7,000,000

 
7,000,000

 
7,507,500

 
1.0%
 
 
 
 
 
 
 
 
7,000,000

 
7,000,000

 
7,507,500

 
 
Nation Safe Drivers Holdings, Inc.
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured Second Lien Term Loan LIBOR + 8.000%, 2.000% Floor(3) (4)
 
9/29/2020
 
20,676,479

 
20,676,479

 
20,883,243

 
2.7%
 
 
 
 
 
 
 
 
20,676,479

 
20,676,479

 
20,883,243

 
 
New Media Holdings II, LLC
 
Media: Advertising, Printing & Publishing
 
Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor(3)
 
6/4/2020
 
17,997,890

 
17,984,559

 
17,997,890

 
2.3%
 
 
 
 
 
 
 
 
17,997,890

 
17,984,559

 
17,997,890

 
 
Novetta Solutions, LLC
 
High Tech Industries
 
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor(3)
 
10/16/2023
 
11,000,000

 
10,907,995

 
10,689,140

 
1.4%
 
 
 
 
 
 
 
 
11,000,000

 
10,907,995

 
10,689,140

 
 
Nuspire, LLC
 
High Tech Industries
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor(3) (4) (5)
 
11/8/2022
 
6,310,000

 
6,310,000

 
6,310,000

 
0.8%

F-8


Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of
Net Assets
(2)
 
 
 
 
 
 
 
 
6,310,000

 
6,310,000

 
6,310,000

 
 
Omnitracs, Inc.
 
Telecommunications
 
Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor(3)
 
5/25/2021
 
7,000,000

 
7,010,661

 
7,000,000

 
0.9%
 
 
 
 
 
 
 
 
7,000,000

 
7,010,661

 
7,000,000

 
 
Oxford Mining Company, LLC
 
Metals & Mining
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 0.750% Floor, 3.000% PIK(3) (4)
 
12/31/2018
 
20,889,280

 
20,889,280

 
20,837,058

 
2.7%
 
 
 
 
 
 
 
 
20,889,280

 
20,889,280

 
20,837,058

 
 
Path Medical, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor(4) (8)
 
10/11/2021
 
15,990,000

 
15,389,424

 
15,345,923

 
2.0%
 
 
 
 
Warrants (4) (7)
 
 
 

 
669,709

 
669,709

 
0.1%
 
 
 
 
 
 
 
 
15,990,000

 
16,059,133

 
16,015,632

 
 
Payless Inc.
 
Retail
 
Senior Secured Second Lien Term Loan LIBOR + 7.500%, 1.000% Floor(3) (14)
 
3/11/2022
 
6,000,000

 
6,014,018

 
712,500

 
0.1%
 
 
 
 
 
 
 
 
6,000,000

 
6,014,018

 
712,500

 
 
Peabody Energy Corporation
 
Metals & Mining
 
Senior Secured First Lien Note 6.000%(9) (13)
 
3/31/2022
 
1,000,000

 
1,000,000

 
1,000,000

 
0.1%
 
 
 
 
 
 
 
 
1,000,000

 
1,000,000

 
1,000,000

 
 
Petco Animal Supplies, Inc.
 
Retail
 
Senior Secured First Lien Term Loan LIBOR + 3.250%, 1.000% Floor(3) (4) (11)
 
1/26/2023
 
2,000,000

 
1,840,000

 
1,840,000

 
0.2%
 
 
 
 
 
 
 
 
2,000,000

 
1,840,000

 
1,840,000

 
 
PetroChoice Holdings, Inc.
 
Chemicals, Plastics & Rubber
 
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor (3) (11)
 
9/3/2023
 
9,000,000

 
9,000,000

 
9,000,000

 
1.2%
 
 
 
 
 
 
 
 
9,000,000

 
9,000,000

 
9,000,000

 
 
Preferred Proppants, LLC
 
Construction & Building
 
Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor (3) (11)
 
7/27/2020
 
3,969,466

 
2,790,756

 
3,349,237

 
0.4%
 
 
 
 
 
 
 
 
3,969,466

 
2,790,756

 
3,349,237

 
 
Press Ganey Holdings, Inc
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor (8) (11)
 
10/21/2024
 
6,500,000

 
6,473,806

 
6,472,505

 
0.8%
 
 
 
 
 
 
 
 
6,500,000

 
6,473,806

 
6,472,505

 
 
PT Network, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor(3) (4) (5)
 
11/30/2021
 
5,805,834

 
5,805,834

 
5,805,834

 
0.7%
 
 
 
 
 
 
 
 
5,805,834

 
5,805,834

 
5,805,834

 
 
Reddy Ice Corporation
 
Beverage & Food
 
Senior Secured Second Lien Term Loan LIBOR + 9.500%, 1.250% Floor(3) (4)
 
10/1/2019
 
2,000,000

 
2,000,000

 
1,780,000

 
0.2%
 
 
 
 
 
 
 
 
2,000,000

 
2,000,000

 
1,780,000

 
 
Research Now Group, Inc.
 
Services:  Business
 
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor(3)
 
3/18/2022
 
15,000,000

 
15,000,000

 
15,000,000

 
1.9%
 
 
 
 
 
 
 
 
15,000,000

 
15,000,000

 
15,000,000

 
 
Resolute Investment Managers, Inc.
 
Banking, Finance, Insurance & Real Estate