PhenixFIN Corp - FORM 10-Q - February 6, 2018

Attached files

file	filename
EX-32.1 - EXHIBIT 32.1 - PhenixFIN Corp	exhibit321123117.htm
EX-31.2 - EXHIBIT 31.2 - PhenixFIN Corp	exhibit312123117.htm
EX-31.1 - EXHIBIT 31.1 - PhenixFIN Corp	exhibit311123117.htm
EX-21.1 - EXHIBIT 21.1 - PhenixFIN Corp	exhibit211123117.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 December 31, 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 February 5, 2018.

MEDLEY CAPITAL CORPORATION

TABLE OF CONTENTS



Part I.	Financial Information

Item I.	Financial Statements

	Consolidated Statements of Assets and Liabilities as of December 31, 2017 (unaudited) and September 30, 2017	F-1

	Consolidated Statements of Operations for the three months ended December 31, 2017 and 2016 (unaudited)	F-2

	Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2017 and 2016 (unaudited)	F-3

	Consolidated Statements of Cash Flows for the three months ended December 31, 2017 and 2016 (unaudited)	F-4

	Consolidated Schedules of Investments as of December 31, 2017 (unaudited) and September 30, 2017	F-5

	Notes to Consolidated Financial Statements (unaudited)	F-21

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15

Item 4.	Controls and Procedures	16

Part II.	Other Information

Item 1.	Legal Proceedings	17

Item 1A.	Risk Factors	17

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	17

Item 3.	Defaults Upon Senior Securities	18

Item 4.	Mine Safety Disclosures	18

Item 5.	Other Information	18

Item 6.	Exhibits	18

SIGNATURES

Medley Capital Corporation

Consolidated Statements of Assets and Liabilities



	December 31, 2017			September 30, 2017
	(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $649,624,352 and $625,108,198, respectively)	$	565,541,395		$	575,495,698
Affiliated investments (amortized cost of $92,464,353 and $91,026,729, respectively)	95,792,257			90,071,365
Controlled investments (amortized cost of $210,068,394 and $197,918,352, respectively)	174,569,385			171,423,836
Total investments at fair value	835,903,037			836,990,899
Cash and cash equivalents	50,008,401			108,571,958
Interest receivable	9,474,622			9,371,048
Other assets	3,488,194			3,321,822
Fees receivable	754,578			765,756
Deferred offering costs	339,172			307,015
Receivable for dispositions and investments sold	55,969			231,895
Total assets	$	900,023,973		$	959,560,393

LIABILITIES
Revolving credit facility payable (net of debt issuance costs of $1,618,750 and $1,777,181, respectively)	$	45,381,250		$	66,222,819
Term loan payable (net of debt issuance costs of $952,656 and $1,045,895, respectively)	101,047,344			100,954,105
Notes payable (net of debt issuance costs of $3,871,214 and $4,122,533, respectively)	173,002,422			172,751,776
SBA debentures payable (net of debt issuance costs of $2,702,965 and $2,845,694, respectively)	147,297,035			147,154,306
Management and incentive fees payable (see Note 6)	4,067,841			4,312,004
Interest and fees payable	5,063,062			3,759,891
Accounts payable and accrued expenses	1,981,890			1,863,546
Administrator expenses payable (see Note 6)	867,331			859,794
Deferred tax liability	821,927			911,936
Due to affiliate	377,231			81,347
Deferred revenue	315,028			259,552
Offering costs payable	32,157			—
Total liabilities	$	480,254,518		$	499,131,076

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	705,046,098			705,046,098
Accumulated undistributed net investment income	7,991,654			9,528,367
Accumulated net realized gain/(loss) from investments	(176,684,365		)	(176,662,889		)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes	(116,638,406		)	(77,536,733		)
Total net assets	419,769,455			460,429,317
Total liabilities and net assets	$	900,023,973		$	959,560,393

NET ASSET VALUE PER SHARE	$	7.71		$	8.45

See accompanying notes to consolidated financial statements.

F-1

Medley Capital Corporation

Consolidated Statements of Operations



	For the three months ended December 31
	2017			2016
	(unaudited)			(unaudited)
INVESTMENT INCOME:
Interest from investments
Non-controlled/non-affiliated investments:
Cash	$	13,090,352		$	18,520,378
Payment-in-kind	1,641,133			2,962,050
Affiliated investments:
Cash	577,309			166,750
Payment-in-kind	849,495			—
Controlled investments:
Cash	429,762			343,158
Payment-in-kind	718,518			1,971,560
Total interest income	17,306,569			23,963,896
Dividend income, net of provisional taxes ($0 and $0, respectively)	1,443,750			644,953
Interest from cash and cash equivalents	31,769			23,412
Fee income (see Note 9)	1,848,760			1,423,804
Total investment income	20,630,848			26,056,065

EXPENSES:
Base management fees (see Note 6)	4,067,841			4,514,615
Incentive fees (see Note 6)	—			895,675
Interest and financing expenses	6,759,199			7,773,971
Administrator expenses (see Note 6)	867,331			916,066
General and administrative	757,255			697,005
Professional Fees	585,667			651,111
Directors fees	147,180			169,784
Insurance	133,214			99,455
Expenses before management and incentive fee waivers	13,317,687			15,717,682
Management fee waiver (see Note 6)	—			(19,945		)
Incentive fee waiver (see Note 6)	—			(43,663		)
Total expenses net of management and incentive fee waivers	13,317,687			15,654,074
Net investment income before excise taxes	7,313,161			10,401,991
Excise tax expense	(134,000		)	(267,183		)
NET INVESTMENT INCOME	7,179,161			10,134,808

REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from investments
Non-controlled/non-affiliated investments	(21,476		)	(6,298,431		)
Affiliated investments	—			—
Controlled investments	—			—
Net realized gain/(loss) from investments	(21,476		)	(6,298,431		)
Net unrealized appreciation/(depreciation) on investments
Non-controlled/non-affiliated investments	(34,470,457		)	1,625,294
Affiliated investments	4,283,268			—
Controlled investments	(9,004,493		)	863,902
Net unrealized appreciation/(depreciation) on investments	(39,191,682		)	2,489,196
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments	90,009			—
Net gain/(loss) on investments	(39,123,149		)	(3,809,235		)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(31,943,988	)	$	6,325,573

WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE	$	(0.59	)	$	0.12
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE	$	0.13		$	0.19
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)	54,474,211			54,474,211
DIVIDENDS DECLARED PER COMMON SHARE	$	0.16		$	0.22

See accompanying notes to consolidated financial statements.

F-2

Medley Capital Corporation

Consolidated Statements of Changes in Net Assets



	For the three months ended December 31
	2017			2016
	(unaudited)			(unaudited)
OPERATIONS:
Net investment income	$	7,179,161		$	10,134,808
Net realized gain/(loss) from investments	(21,476		)	(6,298,431		)
Net unrealized appreciation/(depreciation) on investments	(39,191,682		)	2,489,196
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments	90,009			—
Net increase/(decrease) in net assets from operations	(31,943,988		)	6,325,573
SHAREHOLDER DISTRIBUTIONS:
Distributions from net investment income	(8,715,874		)	(11,984,328		)
Net decrease in net assets from shareholder distributions	(8,715,874		)	(11,984,328		)
Total increase/(decrease) in net assets	(40,659,862		)	(5,658,755		)
Net assets at beginning of period	460,429,317			516,919,142
Net assets at end of period including accumulated undistributed net investment income of $7,991,654 and $8,962,242, respectively	$	419,769,455		$	511,260,387

Net asset value per common share	$	7.71		$	9.39
Common shares outstanding at end of period	54,474,211			54,474,211

See accompanying notes to consolidated financial statements.

F-3

Medley Capital Corporation

Consolidated Statements of Cash Flows



	For the three months ended December 31
	2017			2016
	(unaudited)			(unaudited)
Cash flows from operating activities
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS	$	(31,943,988	)	$	6,325,573
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	(3,136,782		)	(4,823,083		)
Net amortization of premium/(discount) on investments	(239,606		)	(350,100		)
Amortization of debt issuance costs	645,044			997,329
Net realized (gain)/loss from investments	21,476			6,298,431
Net deferred income taxes	(90,009		)	—
Net unrealized (appreciation)/depreciation on investments	39,191,682			(2,489,196		)
Proceeds from sale and settlements of investments	47,978,251			40,117,661
Purchases, originations and participations	(82,727,159		)	(42,182,104		)
(Increase)/decrease in operating assets:
Interest receivable	(103,574		)	(2,024,597		)
Other assets	(166,371		)	143,067
Fees receivable	11,178			764,524
Receivable for dispositions and investments sold	175,926			133,631
Increase/(decrease) in operating liabilities:
Management and incentive fees payable, net	(244,163		)	788,063
Interest and fees payable	1,303,171			2,317,959
Accounts payable and accrued expenses	118,344			(456,158		)
Administrator expenses payable	7,537			(74,170		)
Due to affiliate	295,884			114,038
Deferred revenue	55,476			(59,740		)
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES	(28,847,683		)	5,541,128

Cash flows from financing activities
Borrowings on debt	9,000,000			18,379,732
Paydowns on debt	(30,000,000		)	(14,000,000		)
Debt issuance costs paid	—			(285,408		)
Payments of cash dividends	(8,715,874		)	(11,984,328		)
Offering costs paid	—			(1,381		)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES	(29,715,874		)	(7,891,385		)

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	(58,563,557		)	(2,350,257		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	108,571,958			104,485,263
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	50,008,401		$	102,135,006

Supplemental Information:
Interest paid during the period	$	4,792,028		$	4,439,248
Supplemental non-cash information:
Payment-in-kind interest income	$	3,209,146		$	4,933,610
Net amortization of premium/(discount) on investments	$	239,606		$	350,100
Amortization of debt issuance costs	$	(645,044	)	$	(997,329	)
Non-cash purchase of investments	$	—		$	58,615,663
Non-cash sale of investments	$	—		$	58,615,663

See accompanying notes to consolidated financial statements.

F-4

Medley Capital Corporation

Consolidated Schedule of Investments

December 31, 2017

(unaudited)



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	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)⁽¹⁴⁾	6/16/2023	17,456,250	17,456,250	17,608,119	4.2	%
				17,456,250	17,456,250	17,608,119

Accupac, Inc.⁽⁷⁾	Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)^(13)(18)	9/14/2023	9,862,951	9,862,951	9,862,951	2.3	%
				9,862,951	9,862,951	9,862,951

Advanced Diagnostic Holdings, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.875% LIBOR Floor)⁽¹⁴⁾	12/11/2020	14,582,109	14,582,109	14,582,109	3.5	%
				14,582,109	14,582,109	14,582,109

Alpine SG, LLC⁽⁷⁾	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/16/2022	13,500,000	13,500,000	13,500,000	3.2	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(22)	11/16/2022	4,642,857	4,642,857	4,642,857	1.1	%
		Revolving Credit Facility (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(17)	11/16/2022	—	—	—	0.0	%
				18,142,857	18,142,857	18,142,857

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	6,578,000	1.6	%
				6,500,000	6,500,000	6,578,000

Autosplice, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/30/2019	14,169,522	14,169,522	14,277,210	3.4	%
				14,169,522	14,169,522	14,277,210

Barry's Bootcamp Holdings, LLC⁽⁷⁾	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	7,628,570	7,628,570	7,628,570	1.8	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	—	—	—	0.0	%
		Revolving Credit Facility (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(17)	7/14/2022	—	—	—	0.0	%
				7,628,570	7,628,570	7,628,570

Be Green Packaging, LLC	Containers, Packaging & Glass	Equity - 417 Common Units		—	416,250	—	0.0	%
				—	416,250	—

F-5



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

Black Angus Steakhouses, LLC⁽⁷⁾	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/24/2020	7,649,554	7,649,554	7,325,796	1.7	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/24/2020	—	—	—	0.0	%
		Revolving Credit Facility (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)^(14)(17)	4/24/2020	357,143	357,143	324,104	0.1	%
				8,006,697	8,006,697	7,649,900

Brook & Whittle Holdings Corp.⁽⁷⁾	Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/17/2023	1,330,274	1,330,274	1,330,274	0.3	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)^(14)(17)	10/17/2023	—	—	—	0.0	%
				1,330,274	1,330,274	1,330,274

Central States Dermatology Services, LLC⁽⁷⁾	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/20/2022	1,084,519	1,084,519	1,084,519	0.2	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(18)	4/20/2022	209,355	209,355	209,355	0.0	%
				1,293,874	1,293,874	1,293,874

Comfort Holding, LLC	Consumer goods: Durable	Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	2/3/2025	1,000,000	962,572	844,600	0.2	%
				1,000,000	962,572	844,600

CP OPCO, LLC	Services: Consumer	Senior Secured First Lien Term Loan B (ABR + 5.50% PIK, 4.50% ABR Floor)⁽¹⁰⁾	4/1/2019	1,274,828	1,210,237	338,467	0.1	%
		Senior Secured First Lien Term Loan C (ABR + 8.50% PIK, 4.50% ABR Floor)⁽¹⁰⁾	4/1/2019	9,380,638	4,060,507	—	0.0	%
		Preferred Facility (ABR + 7.00% PIK, 4.50% ABR Floor)⁽¹⁰⁾	4/1/2019	5,883,641	—	—	0.0	%
		Revolving Credit Facility (ABR + 3.50% Cash, 4.50% ABR Floor)	4/1/2019	—	—	—	0.0	%
		Equity - 232 Common Units		—	—	—	0.0	%
				16,539,107	5,270,744	338,467

CPI International, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽¹³⁾	7/26/2025	5,000,000	4,975,920	4,975,000	1.2	%
				5,000,000	4,975,920	4,975,000

Crow Precision Components, LLC	Aerospace & Defense	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/30/2019	13,190,000	13,190,000	13,190,000	3.1	%
		Equity - 350 Common Units		—	700,000	273,809	0.1	%
				13,190,000	13,890,000	13,463,809

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	7,540,500	1.8	%
				7,500,000	7,500,000	7,540,500

F-6



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

DHISCO Electronic Distribution, Inc.	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan A (LIBOR + 8.50% PIK, 1.50% LIBOR Floor)⁽¹⁴⁾	11/10/2019	4,107,239	4,107,239	4,107,239	1.0	%
		Senior Secured First Lien Term Loan B (LIBOR + 11.00% PIK, 1.50% LIBOR Floor)^(10)(14)	11/10/2019	15,203,145	14,896,413	6,134,469	1.5	%
		Senior Secured First Lien Term Loan C (LIBOR + 12.25% PIK, 1.50% LIBOR Floor)^(10)(14)	11/10/2019	13,200,369	11,600,575	—	0.0	%
		Senior Secured First Lien Term Loan D (LIBOR + 13.25% PIK, 1.50% LIBOR Floor)^(10)(14)	11/10/2019	12,407,459	4,701,476	—	0.0	%
		Equity - 1,230,769 Class A Units		—	1,230,769	—	0.0	%
				44,918,212	36,536,472	10,241,708

Dream Finders Homes, LLC	Construction & Building	Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)⁽¹⁶⁾	10/1/2018	3,399,550	3,366,894	3,430,146	0.8	%
		Preferred Equity (8.00% PIK)		3,644,300	3,644,300	3,644,300	0.9	%
				7,043,850	7,011,194	7,074,446

Dynamic Energy Services International LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan (13.50% PIK + LIBOR)⁽¹⁶⁾	6/6/2018	18,829,092	18,829,092	16,027,324	3.8	%
				18,829,092	18,829,092	16,027,324

Engineered Machinery Holdings, Inc.⁽⁷⁾	Capital Equipment	Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/18/2025	1,519,149	1,504,503	1,503,958	0.4	%
		Senior Secured Second Lien Delayed Draw Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)^(14)(19)	7/18/2025	151,915	150,405	150,106	0.0	%
				1,671,064	1,654,908	1,654,064

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	11,562,500	11,562,500	11,562,500	2.8	%
				11,562,500	11,562,500	11,562,500

Footprint Acquisition, LLC	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)⁽¹⁵⁾	2/27/2020	5,051,388	5,051,388	5,051,388	1.2	%
		Preferred Equity (8.75% PIK)		6,259,256	6,259,256	5,546,952	1.3	%
		Equity - 150 Common Units		—	—	—	0.0	%
				11,310,644	11,310,644	10,598,340

Freedom Powersports, LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.50% LIBOR Floor)⁽¹⁴⁾	9/26/2019	12,040,000	12,040,000	12,160,400	2.9	%
				12,040,000	12,040,000	12,160,400

Friedrich Holdings, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	2/7/2023	10,000,000	10,000,000	10,143,000	2.4	%
				10,000,000	10,000,000	10,143,000

Global Accessories Group, LLC⁽¹²⁾	Consumer goods: Non-durable	Equity - 3.8% Membership Interest		—	151,337	151,339	0.0	%
				—	151,337	151,339

Harrison Gypsum, LLC⁽¹²⁾	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 1.50% LIBOR Floor)⁽¹³⁾	12/21/2018	51,608,547	51,608,547	51,608,547	12.3	%
				51,608,547	51,608,547	51,608,547

Heligear Acquisition Co.⁽⁸⁾	Aerospace & Defense	Senior Secured First Lien Note (10.25% Cash)	10/15/2019	20,000,000	20,000,000	20,424,000	4.9	%
				20,000,000	20,000,000	20,424,000

F-7



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

Imagine! Print Solutions, LLC	Media: Advertising, Printing & Publishing	Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/21/2023	3,000,000	2,957,827	2,955,000	0.7	%
				3,000,000	2,957,827	2,955,000

Impact Sales, LLC⁽⁷⁾	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	12/30/2021	2,598,750	2,598,750	2,542,877	0.6	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)^(14)(18)	12/30/2021	119,410	119,410	100,617	0.0	%
				2,718,160	2,718,160	2,643,494

InterFlex Acquisition Company, LLC	Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	8/18/2022	14,625,000	14,625,000	14,625,000	3.5	%
				14,625,000	14,625,000	14,625,000

JD Norman Industries, Inc.	Automotive	Senior Secured First Lien Term Loan (LIBOR + 12.25% Cash)⁽¹⁵⁾	3/6/2019	19,800,000	19,800,000	19,800,000	4.7	%
				19,800,000	19,800,000	19,800,000

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	20,812,500	20,812,500	21,076,819	5.0	%
				20,812,500	20,812,500	21,076,819

Lighting Science Group Corporation	Containers, Packaging & Glass	Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)⁽¹⁶⁾	2/19/2019	13,936,111	13,657,725	13,765,393	3.3	%
		Warrants - 0.81% of Outstanding Equity⁽²¹⁾	2/19/2024	—	955,680	—	0.0	%
				13,936,111	14,613,405	13,765,393

Manna Pro Products, LLC⁽⁷⁾	Consumer goods: Non-durable	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	12/8/2023	8,000,000	8,000,000	8,000,000	1.9	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(18)	12/8/2023	—	—	—	0.0	%
				8,000,000	8,000,000	8,000,000

Merchant Cash and Capital, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 13.00% Cash, 3.00% LIBOR Floor)⁽¹³⁾	5/31/2017	2,633,340	2,633,340	2,633,340	0.6	%
		Senior Secured Second Lien Term Loan (17.00% PIK)⁽¹⁰⁾	5/4/2017	16,196,491	15,167,277	7,759,739	1.8	%
				18,829,831	17,800,617	10,393,079

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	21,202,310	21,202,310	21,202,310	5.1	%
				21,202,310	21,202,310	21,202,310

Path Medical, LLC⁽⁷⁾	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/11/2021	8,305,335	7,901,696	8,349,354	2.0	%
		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	2,861,148	0.7	%
		Warrants - 1.56% of Outstanding Equity	1/9/2027	—	499,751	83,018	0.0	%
				11,113,835	11,209,947	11,293,520

F-8



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

The Plastics Group, Inc.	Chemicals, Plastics & Rubber	Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)	2/28/2019	21,865,403	21,865,403	3,028,358	0.7	%
		Senior Secured First Lien Term Loan 2 (11.00% Cash, 2.00% PIK)	2/28/2018	467,652	467,652	467,652	0.1	%
				22,333,055	22,333,055	3,496,010

Point.360	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00% PIK)^(10)(16)	7/8/2020	2,103,712	2,103,712	1,860,313	0.4	%
		Equity - 479,283 Common Units⁽²⁰⁾		—	129,406	33,550	0.0	%
		Warrants - 2.8% of Outstanding Equity⁽²¹⁾	7/8/2020	—	52,757	21,103	0.0	%
				2,103,712	2,285,875	1,914,966

Prince Mineral Holding Corp.⁽⁸⁾	Wholesale	Senior Secured First Lien Note (11.50% Cash)⁽²¹⁾	12/15/2019	6,800,000	6,770,826	6,995,840	1.7	%
				6,800,000	6,770,826	6,995,840

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	16,265,600	3.9	%
				17,000,000	17,000,000	16,265,600

RESIC Enterprises, LLC	Beverage & Food	Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/10/2025	10,000,000	10,000,000	10,000,000	2.4	%