Attached files
| file | filename |
|---|---|
| EX-21.1 - EXHIBIT 21.1 - PhenixFIN Corp | exhibit211.htm |
| EX-32.1 - EXHIBIT 32.1 - PhenixFIN Corp | exhibit321.htm |
| EX-31.2 - EXHIBIT 31.2 - PhenixFIN Corp | exhibit312.htm |
| EX-31.1 - EXHIBIT 31.1 - PhenixFIN Corp | exhibit311.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Form 10-Q
(Mark One) | |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended June 30, 2017 | |
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 ý 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, smaller reporting company, or an emerging growth company. See the 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 ¨ Accelerated filer ý Non-accelerated filer ¨ (Do not check if a smaller reporting company)
Smaller reporting company ¨ Emerging growth company ¨
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. ¨
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 ý
The Registrant had 54,474,211 shares of common stock, $0.001 par value, outstanding as of August 8, 2017.
MEDLEY CAPITAL CORPORATION
TABLE OF CONTENTS
Part I. | Financial Information | |
Item I. | Financial Statements | |
Consolidated Statements of Assets and Liabilities as of June 30, 2017 (unaudited) and September 30, 2016 | ||
Consolidated Statements of Operations for the three and nine months ended June 30, 2017 and 2016 (unaudited) | ||
Consolidated Statements of Changes in Net Assets for the nine months ended June 30, 2017 and 2016 (unaudited) | ||
Consolidated Statements of Cash Flows for the nine months ended June 30, 2017 and 2016 (unaudited) | ||
Consolidated Schedules of Investments as of June 30, 2017 (unaudited) and September 30, 2016 | ||
Notes to Consolidated Financial Statements (unaudited) | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
Part II. | Other Information | |
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
SIGNATURES | ||
Medley Capital Corporation
Consolidated Statements of Assets and Liabilities
June 30, 2017 | September 30, 2016 | ||||||
ASSETS | (unaudited) | ||||||
Investments at fair value | |||||||
Non-controlled/non-affiliated investments (amortized cost of $640,598,428 and $813,813,853, respectively) | $ | 608,166,073 | $ | 767,302,020 | |||
Controlled investments (amortized cost of $273,520,957 and $189,077,188, respectively) | 239,084,548 | 136,882,275 | |||||
Affiliated investments (amortized cost of $34,780,082 and $10,000,000, respectively) | 33,316,823 | 10,000,000 | |||||
Total investments at fair value | 880,567,444 | 914,184,295 | |||||
Cash and cash equivalents | 118,186,302 | 104,485,263 | |||||
Interest receivable | 6,629,416 | 8,982,154 | |||||
Receivable for dispositions and investments sold | 4,205,396 | 689,379 | |||||
Other assets | 1,103,185 | 893,140 | |||||
Fees receivable | 642,654 | 1,403,383 | |||||
Deferred offering costs | 307,015 | 242,991 | |||||
Total assets | $ | 1,011,641,412 | $ | 1,030,880,605 | |||
LIABILITIES | |||||||
Revolving credit facility payable (net of debt issuance costs of $1,582,808 and $3,589,844, respectively) | $ | 24,417,192 | $ | 10,410,156 | |||
Term loan payable (net of debt issuance costs of $1,667,040 and $2,196,756, respectively) | 172,332,960 | 171,803,244 | |||||
Notes payable (net of debt issuance costs of $4,367,306 and $4,629,649, respectively) | 172,507,676 | 172,883,176 | |||||
SBA debentures payable (net of debt issuance costs of $3,016,924 and $3,525,029, respectively) | 146,983,076 | 146,474,971 | |||||
Management and incentive fees payable (See note 6) | 4,439,018 | 4,558,619 | |||||
Interest and fees payable | 3,194,544 | 1,714,023 | |||||
Payable for investments originated, purchased and participated | 1,995,000 | — | |||||
Accounts payable and accrued expenses | 1,854,986 | 2,662,950 | |||||
Deferred tax liability | 1,221,117 | 2,003,724 | |||||
Administrator expenses payable (See note 6) | 1,075,365 | 990,236 | |||||
Deferred revenue | 218,781 | 369,805 | |||||
Due to affiliate | 103,758 | 90,559 | |||||
Total liabilities | $ | 530,343,473 | $ | 513,961,463 | |||
Guarantees and Commitments (See note 8) | |||||||
NET ASSETS | |||||||
Common stock, par value $0.001 per share, 100,000,000 common shares authorized, 54,474,211 and 54,474,211 common shares issued and outstanding, respectively | $ | 54,474 | $ | 54,474 | |||
Capital in excess of par value | 705,313,281 | 705,326,059 | |||||
Accumulated undistributed net investment income | 5,873,430 | 10,811,762 | |||||
Accumulated net realized gain/(loss) from investments | (160,827,690 | ) | (99,000,266 | ) | |||
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes | (69,115,556 | ) | (100,272,887 | ) | |||
Total net assets | 481,297,939 | 516,919,142 | |||||
Total liabilities and net assets | $ | 1,011,641,412 | $ | 1,030,880,605 | |||
NET ASSET VALUE PER SHARE | $ | 8.84 | $ | 9.49 | |||
See accompanying notes to consolidated financial statements.
F-1
Medley Capital Corporation
Consolidated Statements of Operations
For the three months ended June 30 | For the nine months ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
INVESTMENT INCOME: | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
Interest from investments | |||||||||||||||
Non-controlled/non-affiliated investments: | |||||||||||||||
Cash | $ | 16,029,549 | $ | 22,708,578 | $ | 51,064,282 | $ | 76,108,574 | |||||||
Payment-in-kind | 2,505,760 | 1,722,822 | 8,191,703 | 5,296,725 | |||||||||||
Affiliated investments: | |||||||||||||||
Cash | 461,758 | 166,750 | 1,492,454 | 500,250 | |||||||||||
Payment-in-kind | 102,534 | — | 303,763 | — | |||||||||||
Controlled investments: | |||||||||||||||
Cash | 620,659 | 821,650 | 1,317,345 | 1,699,753 | |||||||||||
Payment-in-kind | 1,009,148 | 2,020,642 | 4,052,050 | 4,147,327 | |||||||||||
Total interest income | 20,729,408 | 27,440,442 | 66,421,597 | 87,752,629 | |||||||||||
Dividend income, net of provisional taxes ($0 and $511,510, respectively) | 1,050,000 | 333,351 | 2,744,953 | 333,351 | |||||||||||
Interest from cash and cash equivalents | 45,705 | 3,554 | 109,484 | 15,957 | |||||||||||
Fee income (See note 9) | 1,870,441 | 634,935 | 4,832,573 | 5,451,558 | |||||||||||
Total investment income | 23,695,554 | 28,412,282 | 74,108,607 | 93,553,495 | |||||||||||
EXPENSES: | |||||||||||||||
Base management fees (See note 6) | 4,449,688 | 4,657,375 | 13,460,589 | 14,880,361 | |||||||||||
Incentive fees (See note 6) | — | 2,793,709 | 895,675 | 9,858,961 | |||||||||||
Interest and financing expenses | 7,320,995 | 7,680,571 | 24,238,454 | 22,570,853 | |||||||||||
Administrator expenses (See note 6) | 1,075,365 | 966,374 | 2,988,505 | 2,925,270 | |||||||||||
Professional fees | 616,368 | 638,558 | 1,930,172 | 1,826,664 | |||||||||||
General and administrative | 423,750 | 324,949 | 1,903,799 | 1,488,119 | |||||||||||
Directors fees | 151,736 | 132,724 | 471,529 | 396,627 | |||||||||||
Insurance | 99,199 | 123,862 | 298,109 | 394,681 | |||||||||||
Expenses before management and incentive fee waivers | 14,137,101 | 17,318,122 | 46,186,832 | 54,341,536 | |||||||||||
Management fee waiver (See note 6) | (10,669 | ) | (40,339 | ) | (47,941 | ) | (111,943 | ) | |||||||
Incentive fee waiver (See note 6) | — | 180,725 | (43,663 | ) | (1,871,059 | ) | |||||||||
Total expenses, net of management and incentive fee waivers | 14,126,432 | 17,458,508 | 46,095,228 | 52,358,534 | |||||||||||
Net investment income before excise taxes | 9,569,122 | 10,953,774 | 28,013,379 | 41,194,961 | |||||||||||
Excise tax expense | — | — | (267,183 | ) | — | ||||||||||
NET INVESTMENT INCOME | 9,569,122 | 10,953,774 | 27,746,196 | 41,194,961 | |||||||||||
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: | |||||||||||||||
Net realized gain/(loss) from investments | (55,082,578 | ) | (29,176,489 | ) | (61,371,061 | ) | (23,699,207 | ) | |||||||
Net unrealized appreciation/(depreciation) on investments | 47,729,431 | 32,285,431 | 30,374,723 | (41,831,281 | ) | ||||||||||
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments | 782,608 | (40,378 | ) | 782,608 | (398,484 | ) | |||||||||
Loss on extinguishment of debt | — | — | (456,364 | ) | — | ||||||||||
Net gain/(loss) on investments | (6,570,539 | ) | 3,068,564 | (30,670,094 | ) | (65,928,972 | ) | ||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,998,583 | $ | 14,022,338 | $ | (2,923,898 | ) | $ | (24,734,011 | ) | |||||
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE | $ | 0.06 | $ | 0.26 | $ | (0.05 | ) | $ | (0.44 | ) | |||||
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE | $ | 0.18 | $ | 0.20 | $ | 0.51 | $ | 0.74 | |||||||
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11) | 54,474,211 | 54,763,411 | 54,474,211 | 55,618,719 | |||||||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.16 | $ | 0.30 | $ | 0.60 | $ | 0.90 | |||||||
See accompanying notes to consolidated financial statements.
F-2
Medley Capital Corporation
Consolidated Statements of Changes in Net Assets
For the nine months ended June 30 | |||||||
2017 | 2016 | ||||||
OPERATIONS: | (unaudited) | (unaudited) | |||||
Net investment income | $ | 27,746,196 | $ | 41,194,961 | |||
Net realized gain/(loss) from investments | (61,371,061 | ) | (23,699,207 | ) | |||
Net unrealized appreciation/(depreciation) on investments | 30,374,723 | (41,831,281 | ) | ||||
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments | 782,608 | (398,484 | ) | ||||
Loss on extinguishment of debt | (456,364 | ) | — | ||||
Net increase/(decrease) in net assets from operations | (2,923,898 | ) | (24,734,011 | ) | |||
SHAREHOLDER DISTRIBUTIONS: | |||||||
Distributions from net investment income | (32,684,527 | ) | (50,074,808 | ) | |||
Net decrease in net assets from shareholder distributions | (32,684,527 | ) | (50,074,808 | ) | |||
COMMON SHARE TRANSACTIONS: | |||||||
Repurchase of common stock under stock repurchase program (0 and 1,573,741 shares, respectively) | — | (10,699,990 | ) | ||||
Offering costs | (12,778 | ) | (46,429 | ) | |||
Net increase/(decrease) in net assets from common share transactions | (12,778 | ) | (10,746,419 | ) | |||
Total increase/(decrease) in net assets | (35,621,203 | ) | (85,555,238 | ) | |||
Net assets at beginning of period | 516,919,142 | 619,920,384 | |||||
Net assets at end of period including accumulated undistributed net investment income of $5,873,430 and $11,471,984, respectively | $ | 481,297,939 | $ | 534,365,146 | |||
Net asset value per common share | $ | 8.84 | $ | 9.76 | |||
Common shares outstanding at end of period | 54,474,211 | 54,763,411 | |||||
See accompanying notes to consolidated financial statements.
F-3
Medley Capital Corporation
Consolidated Statements of Cash Flows
For the nine months ended June 30 | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities | (unaudited) | (unaudited) | |||||
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS | $ | (2,923,898 | ) | $ | (24,734,011 | ) | |
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 | (12,932,037 | ) | (11,025,799 | ) | |||
Net amortization of premium/(discount) on investments | (1,023,751 | ) | (670,198 | ) | |||
Amortization of debt issuance costs | 3,875,212 | 2,613,877 | |||||
Net realized (gain)/loss from investments | 61,371,061 | 23,699,207 | |||||
Loss on extinguishment of debt | 456,364 | — | |||||
Net deferred income taxes | (782,608 | ) | 692,186 | ||||
Net unrealized (appreciation)/depreciation on investments | (30,374,723 | ) | 41,831,281 | ||||
Proceeds from sale and settlements of investments | 193,828,802 | 207,145,298 | |||||
Purchases, originations and participations | (177,252,501 | ) | (87,378,745 | ) | |||
(Increase)/decrease in operating assets: | |||||||
Interest receivable | 2,352,738 | 1,255,945 | |||||
Receivable for dispositions and investments sold | (3,516,017 | ) | (199,620 | ) | |||
Other assets | (210,045 | ) | (526,006 | ) | |||
Fees receivable | 760,729 | (925,741 | ) | ||||
Increase/(decrease) in operating liabilities: | |||||||
Management and incentive fees payable, net | (119,601 | ) | (2,371,063 | ) | |||
Interest and fees payable | 1,480,521 | 1,796,519 | |||||
Payable for investments purchased, originated and participated | 1,995,000 | — | |||||
Accounts payable and accrued expenses | (807,964 | ) | 150,591 | ||||
Administrator expenses payable | 85,129 | (34,472 | ) | ||||
Deferred revenue | (151,024 | ) | (130,643 | ) | |||
Due to affiliate | 13,199 | (72,430 | ) | ||||
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES | 36,124,586 | 151,116,176 | |||||
Cash flows from financing activities | |||||||
Repurchase of common stock under stock repurchase program | — | (10,699,990 | ) | ||||
Offering costs paid | (76,801 | ) | (80,944 | ) | |||
Borrowings on debt | 145,863,443 | 133,112,825 | |||||
Paydowns on debt | (134,500,000 | ) | (224,000,000 | ) | |||
Debt issuance costs paid | (1,025,662 | ) | (3,234,635 | ) | |||
Payments of cash dividends | (32,684,527 | ) | (50,074,808 | ) | |||
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES | (22,423,547 | ) | (154,977,552 | ) | |||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 13,701,039 | (3,861,376 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 104,485,263 | 15,714,256 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 118,186,302 | $ | 11,852,880 | |||
Supplemental Information: | |||||||
Interest paid during the period | $ | 18,825,098 | $ | 18,102,777 | |||
Supplemental non-cash information: | |||||||
Payment-in-kind interest income | $ | 12,547,516 | $ | 9,444,052 | |||
Net amortization of premium/(discount) on investments | $ | 1,023,751 | $ | 670,198 | |||
Amortization of debt issuance costs | $ | (3,875,212 | ) | $ | (2,613,877 | ) | |
Non-cash purchase of investments | $ | 112,104,733 | $ | — | |||
Non-cash sale of investments | $ | 112,104,733 | $ | — | |||
See accompanying notes to consolidated financial statements.
F-4
Medley Capital Corporation
Consolidated Schedule of Investments
June 30, 2017
(unaudited)
Company(1) | Industry | Type of Investment | Maturity | Par Amount(2) | Cost(3) | Fair Value | % of Net Assets(4) | ||||||||||||||
Non-Controlled/Non-Affiliated Investments: | |||||||||||||||||||||
3SI Security Systems, Inc. | Services: Business | Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)(13) | 6/16/2023 | 17,500,000 | 17,500,000 | 17,500,000 | 3.6 | % | |||||||||||||
17,500,000 | 17,500,000 | 17,500,000 | |||||||||||||||||||
Accupac, Inc. | Containers, Packaging & Glass | Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)(14) | 7/14/2020 | 25,500,000 | 25,500,000 | 25,500,000 | 5.3 | % | |||||||||||||
25,500,000 | 25,500,000 | 25,500,000 | |||||||||||||||||||
Advanced Diagnostic Holdings, LLC | Healthcare & Pharmaceuticals | Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(14) | 12/11/2020 | 14,776,538 | 14,776,538 | 14,776,538 | 3.1 | % | |||||||||||||
14,776,538 | 14,776,538 | 14,776,538 | |||||||||||||||||||
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)(14) | 10/31/2018 | 14,936,677 | 14,936,677 | 14,936,677 | 3.1 | % | |||||||||||||
14,936,677 | 14,936,677 | 14,936,677 | |||||||||||||||||||
American Dental Partners, Inc. | Healthcare & Pharmaceuticals | Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(14) | 9/25/2023 | 6,500,000 | 6,500,000 | 6,500,000 | 1.4 | % | |||||||||||||
6,500,000 | 6,500,000 | 6,500,000 | |||||||||||||||||||
Autosplice, Inc. | High Tech Industries | Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(14) | 6/30/2019 | 14,354,745 | 14,354,745 | 14,369,818 | 3.0 | % | |||||||||||||
14,354,745 | 14,354,745 | 14,369,818 | |||||||||||||||||||
Avantor Performance Materials Holdings, LLC | Chemicals, Plastics & Rubber | Senior Secured Second Lien Term Loan (LIBOR + 8.25% Cash, 1.00% LIBOR Floor)(13) | 3/10/2025 | 1,000,000 | 990,246 | 1,020,000 | 0.2 | % | |||||||||||||
1,000,000 | 990,246 | 1,020,000 | |||||||||||||||||||
Backcountry.com, LLC | Retail | Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(14) | 6/30/2020 | 2,154,099 | 2,154,099 | 2,154,099 | 0.5 | % | |||||||||||||
2,154,099 | 2,154,099 | 2,154,099 | |||||||||||||||||||
Be Green Packaging, LLC | Containers, Packaging & Glass | Equity - 417 Common Units | — | 416,250 | — | 0.0 | % | ||||||||||||||
— | 416,250 | — | |||||||||||||||||||
Black Angus Steakhouses, LLC(7)(9) | Hotel, Gaming & Leisure | Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(14) | 4/24/2020 | 7,752,232 | 7,752,232 | 7,422,854 | 1.5 | % | |||||||||||||
Senior Secured First Lien Delayed Draw (LIBOR + 9.00%, 1.00% LIBOR Floor)(14) | 4/24/2020 | — | — | — | 0.0 | % | |||||||||||||||
Revolver (LIBOR + 9.00%, 1.00% LIBOR Floor)(14)(17) | 4/24/2020 | 267,857 | 267,857 | 234,982 | 0.0 | % | |||||||||||||||
8,020,089 | 8,020,089 | 7,657,836 | |||||||||||||||||||
F-5
Company(1) | Industry | Type of Investment | Maturity | Par Amount(2) | Cost(3) | Fair Value | % of Net Assets(4) | ||||||||||||||
Comfort Holding, LLC | Consumer goods: Durable | Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)(22) | 2/3/2025 | 1,000,000 | 960,929 | 960,000 | 0.2 | % | |||||||||||||
1,000,000 | 960,929 | 960,000 | |||||||||||||||||||
CP OPCO, LLC(7)(9) | Services: Consumer | Senior Secured First Lien Term Loan A (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(14)(20) | 3/31/2019 | 2,971,485 | 2,971,485 | 2,971,485 | 0.6 | % | |||||||||||||
Senior Secured First Lien Term Loan B (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(10)(14)(20) | 3/31/2019 | 1,238,119 | 1,213,889 | 457,522 | 0.1 | % | |||||||||||||||
Senior Secured First Lien Term Loan C (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(10)(14)(15) | 3/31/2019 | 8,891,869 | 4,060,381 | — | 0.0 | % | |||||||||||||||
Senior Secured First Lien Term Loan D (LIBOR + 9.50% PIK, 1.25% LIBOR Floor)(10)(14) | 3/31/2019 | 5,297,476 | — | — | 0.0 | % | |||||||||||||||
Revolving Credit Facility (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(14) | 3/31/2019 | 1,920,849 | 1,920,849 | 1,920,849 | 0.4 | % | |||||||||||||||
Senior Secured First Lien Term Loan (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(14)(21) | 6/30/2017 | 870,662 | 870,662 | 870,662 | 0.2 | % | |||||||||||||||
Equity - 232 Common Units | — | — | — | 0.0 | % | ||||||||||||||||
21,190,460 | 11,037,266 | 6,220,518 | |||||||||||||||||||
Crow Precision Components, LLC | Aerospace & Defense | Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(14) | 9/30/2019 | 13,277,500 | 13,277,500 | 13,169,421 | 2.7 | % | |||||||||||||
Equity - 350 Common Units | — | 700,000 | 273,809 | 0.1 | % | ||||||||||||||||
13,277,500 | 13,977,500 | 13,443,230 | |||||||||||||||||||
CT Technologies Intermediate Holdings, Inc.(12) | Healthcare & Pharmaceuticals | Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(13) | 12/1/2022 | 7,500,000 | 7,500,000 | 7,500,000 | 1.6 | % | |||||||||||||
7,500,000 | 7,500,000 | 7,500,000 | |||||||||||||||||||
DHISCO Electronic Distribution, Inc. | Hotel, Gaming & Leisure | Senior Secured First Lien Term Loan A (LIBOR + 8.50%, 1.50% LIBOR Floor)(14) | 11/10/2019 | 3,809,524 | 3,809,524 | 3,809,524 | 0.8 | % | |||||||||||||
Senior Secured First Lien Term Loan B (LIBOR + 11.00% Cash, 1.50% LIBOR Floor)(14) | 11/10/2019 | 13,870,558 | 13,870,558 | 13,870,558 | 2.9 | % | |||||||||||||||
Senior Secured First Lien Term Loan C (LIBOR + 12.25% Cash, 1.50% LIBOR Floor)(10)(14) | 11/10/2019 | 11,944,829 | 11,600,575 | 5,972,414 | 1.2 | % | |||||||||||||||
Senior Secured First Lien Term Loan D (LIBOR + 13.25% Cash, 1.50% LIBOR Floor)(10)(14) | 11/10/2019 | 11,153,978 | 4,701,476 | — | 0.0 | % | |||||||||||||||
Equity - 1,230,769 Class A Units | — | 1,230,769 | — | 0.0 | % | ||||||||||||||||
40,778,889 | 35,212,902 | 23,652,496 | |||||||||||||||||||
Dynamic Energy Services International LLC | Energy: Oil & Gas | Senior Secured First Lien Term Loan (13.50% PIK + LIBOR)(24) | 6/6/2018 | 17,600,535 | 17,600,535 | 14,981,751 | 3.1 | % | |||||||||||||
17,600,535 | 17,600,535 | 14,981,751 | |||||||||||||||||||
FKI Security Group, LLC(12) | Capital Equipment | Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(14) | 3/30/2020 | 11,750,000 | 11,750,000 | 11,750,000 | 2.4 | % | |||||||||||||
11,750,000 | 11,750,000 | 11,750,000 | |||||||||||||||||||
Footprint Acquisition, LLC | Services: Business | Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)(23) | 2/27/2020 | 5,117,626 | 5,117,626 | 5,117,626 | 1.1 | % | |||||||||||||
Preferred Equity (8.75% PIK) | 6,139,814 | 6,139,814 | 6,139,814 | 1.3 | % | ||||||||||||||||
Equity - 150 Common Units | — | — | 132,797 | 0.0 | % | ||||||||||||||||
11,257,440 | 11,257,440 | 11,390,237 | |||||||||||||||||||
F-6
Company(1) | Industry | Type of Investment | Maturity | Par Amount(2) | Cost(3) | Fair Value | % of Net Assets(4) | ||||||||||||||
Freedom Powersports, LLC | Automotive | Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.50% LIBOR Floor)(14) | 9/26/2019 | 12,780,000 | 12,780,000 | 12,831,759 | 2.7 | % | |||||||||||||
12,780,000 | 12,780,000 | 12,831,759 | |||||||||||||||||||
Friedrich Holdings, Inc. | Construction & Building | Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)(14) | 2/7/2023 | 10,000,000 | 10,000,000 | 10,000,000 | 2.1 | % | |||||||||||||
10,000,000 | 10,000,000 | 10,000,000 | |||||||||||||||||||
Harrison Gypsum, LLC(12) | Construction & Building | Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)(13) | 12/21/2018 | 51,999,531 | 51,999,531 | 50,202,427 | 10.4 | % | |||||||||||||
51,999,531 | 51,999,531 | 50,202,427 | |||||||||||||||||||
Heligear Acquisition Co. | Aerospace & Defense | Senior Secured First Lien Note (10.25% Cash) | 10/15/2019 | 20,000,000 | 20,000,000 | 20,478,600 | 4.3 | % | |||||||||||||
20,000,000 | 20,000,000 | 20,478,600 | |||||||||||||||||||
Imagine! Print Solutions LLC | Media: Advertising, Printing & Publishing | Senior Secured Second Lien Term Loan (LIBOR + 8.75%, 1.00% LIBOR Floor)(14) | 6/21/2023 | 3,000,000 | 2,955,015 | 2,955,000 | 0.6 | % | |||||||||||||
3,000,000 | 2,955,015 | 2,955,000 | |||||||||||||||||||
Impact Sales, LLC(7)(9)(19) | Services: Business | Senior Secured First Lien Term Loan (LIBOR + 7.00%, 1.00% LIBOR Floor)(14) | 12/30/2021 | 2,611,875 | 2,611,875 | 2,611,875 | 0.5 | % | |||||||||||||
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 7.00%, 1.00% LIBOR Floor)(14) | 12/30/2021 | 120,012 | 120,012 | 120,012 | 0.0 | % | |||||||||||||||
2,731,887 | 2,731,887 | 2,731,887 | |||||||||||||||||||
JD Norman Industries, Inc. | Automotive | Senior Secured First Lien Term Loan (LIBOR + 12.25% Cash)(23) | 3/6/2019 | 20,400,000 | 20,400,000 | 20,261,076 | 4.2 | % | |||||||||||||
20,400,000 | 20,400,000 | 20,261,076 | |||||||||||||||||||
Jordan Reses Supply Company, LLC | Healthcare & Pharmaceuticals | Senior Secured Second Lien Term Loan (LIBOR + 11.00%, 1.00% LIBOR Floor)(14) | 4/24/2020 | 20,000,000 | 20,000,000 | 20,200,000 | 4.2 | % | |||||||||||||
20,000,000 | 20,000,000 | 20,200,000 | |||||||||||||||||||
L & S Plumbing Partnership, Ltd. | Construction & Building | Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(14) | 2/15/2022 | 21,656,250 | 21,656,250 | 21,656,250 | 4.5 | % | |||||||||||||
21,656,250 | 21,656,250 | 21,656,250 | |||||||||||||||||||
Lighting Science Group Corporation | Containers, Packaging & Glass | Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(24) | 2/19/2019 | 13,795,263 | 13,406,799 | 13,151,163 | 2.7 | % | |||||||||||||
Warrants - 0.89% of Outstanding Equity | 2/19/2024 | — | 955,680 | 5,000 | 0.0 | % | |||||||||||||||
13,795,263 | 14,362,479 | 13,156,163 | |||||||||||||||||||
Merchant Cash and Capital, LLC | Banking, Finance, Insurance & Real Estate | Senior Secured First Lien Delayed Draw (LIBOR + 13.00% Cash, 3.00% LIBOR Floor)(13) | 5/31/2017 | 8,468,045 | 8,468,045 | 8,468,045 | 1.8 | % | |||||||||||||
Senior Secured Second Lien Term Loan (12.00% Cash, 5.00% PIK) | 5/4/2017 | 15,167,277 | 15,167,277 | 15,167,277 | 3.2 | % | |||||||||||||||
23,635,322 | 23,635,322 | 23,635,322 | |||||||||||||||||||
Nation Safe Drivers Holdings, Inc. | Banking, Finance, Insurance & Real Estate | Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)(14) | 9/29/2020 | 35,278,846 | 35,278,846 | 35,631,635 | 7.4 | % | |||||||||||||
35,278,846 | 35,278,846 | 35,631,635 | |||||||||||||||||||
F-7
Company(1) | Industry | Type of Investment | Maturity | Par Amount(2) | Cost(3) | Fair Value | % of Net Assets(4) | ||||||||||||||
Oxford Mining Company, LLC | Metals & Mining | Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)(14) | 12/31/2018 | 20,988,978 | 20,988,978 | 21,024,239 | 4.4 | % | |||||||||||||
20,988,978 | 20,988,978 | 21,024,239 | |||||||||||||||||||
The Plastics Group, Inc. | Chemicals, Plastics & Rubber | Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK) | 2/28/2019 | 21,680,491 | 21,680,491 | 20,405,245 | 4.2 | % | |||||||||||||
21,680,491 | 21,680,491 | 20,405,245 | |||||||||||||||||||
Path Medical, LLC | Healthcare & Pharmaceuticals | Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(14) | 10/11/2021 | 8,612,892 | 8,167,978 | 8,555,530 | 1.8 | % | |||||||||||||
Senior Secured First Lien Term Loan A (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(14) | 10/11/2021 | 2,808,500 | 2,808,500 | 2,789,795 | 0.6 | % | |||||||||||||||
Warrants - 1.56% of Outstanding Equity | 1/9/2027 | — | 499,751 | 105,777 | 0.0 | % | |||||||||||||||
11,421,392 | 11,476,229 | 11,451,102 | |||||||||||||||||||
Point.360 | Services: Business | Senior Secured First Lien Term Loan (LIBOR + 6.00% PIK)(24) | 7/8/2020 | 2,059,878 | 2,059,878 | 1,821,571 | 0.4 | % | |||||||||||||
Equity - 479,283 Common Units | — | 129,406 | 57,754 | 0.1 | % | ||||||||||||||||
Warrants - 2.8% of Outstanding Equity | 7/8/2020 | — | 52,757 | 34,278 | 0.0 | % | |||||||||||||||
2,059,878 | 2,242,041 | 1,913,603 | |||||||||||||||||||
Prince Mineral Holding Corp.(8) | Wholesale | Senior Secured First Lien Note (11.50%) | 12/15/2019 | 6,800,000 | 6,764,388 | 6,955,652 | 1.4 | % | |||||||||||||
6,800,000 | 6,764,388 | 6,955,652 | |||||||||||||||||||
Reddy Ice Corporation | Beverage & Food | Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)(14) | 11/1/2019 | 17,000,000 | 17,000,000 | 15,980,000 | 3.3 | % | |||||||||||||
17,000,000 | 17,000,000 | 15,980,000 | |||||||||||||||||||
SavATree, LLC(7)(9) | Environmental Industries | Senior Secured First Lien Term Loan (LIBOR + 5.25% Cash, 1.00% LIBOR Floor)(14) | 6/2/2022 | 1,333,333 | 1,333,333 | 1,333,333 | 0.3 | % | |||||||||||||
1,333,333 | 1,333,333 | 1,333,333 | |||||||||||||||||||
Sendero Drilling Company, LLC | Energy: Oil & Gas | Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)(23) | 3/18/2019 | 2,899,155 | 2,570,741 | 2,899,155 | 0.6 | % | |||||||||||||
Warrants - 5.52% of Outstanding Equity | 3/18/2019 | — | 793,523 | 3,098,030 | 0.6 | % | |||||||||||||||
2,899,155 | 3,364,264 | 5,997,185 | |||||||||||||||||||
Seotowncenter, Inc.(12) | Services: Business | Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(14) | 9/11/2019 | 23,917,292 | 23,917,292 | 23,880,220 | 5.0 | % | |||||||||||||
Equity - 3,249.697 Common Units | — | 500,000 | 370,965 | 0.1 | % | ||||||||||||||||
23,917,292 | 24,417,292 | 24,251,185 | |||||||||||||||||||
Ship Supply Acquisition Corporation | Services: Business | Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(14) | 7/31/2020 | 7,755,031 | 7,755,031 | 7,439,324 | 1.5 | % | |||||||||||||
7,755,031 | 7,755,031 | 7,439,324 | |||||||||||||||||||