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EX-32.2 - EXHIBIT 32.2 - Sierra Income Corpsic-ex321x123117.htm
EX-31.2 - EXHIBIT 31.2 - Sierra Income Corpsic-ex312x1231x17.htm
EX-31.1 - EXHIBIT 31.1 - Sierra Income Corpsic-ex311x123117.htm
EX-21.1 - EXHIBIT 21.1 - Sierra Income Corpsic-ex211x123117.htm
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_____________________________________________________
Form 10-K
 _____________________________________________________
(Mark One)
x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 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
 
10017
(Address of Principal Executive Offices)
 
(Zip Code)
(212) 759-0777
(Registrant’s Telephone Number, Including Area Code)
  ___________________________________________________
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.001 per share
 _____________________________________________________ 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  o    No  x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.    Yes  o    No  x
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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x
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, a smaller reporting company or 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
 
o
  
Accelerated filer
 
o
Non-accelerated filer
 
x
  
Smaller reporting company
 
o
 
 
 
  
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 13(a) of the Exchange Act.  o 
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
There is no established market for the Registrant’s shares of common stock. The Registrant is currently conducting an ongoing public offering of its shares of common stock pursuant to a Registration Statement on Form N-2, which shares are being sold at a price of $8.15 per share, with discounts available for certain categories of purchasers, or at a price necessary to ensure that shares are not sold at a price per share, after deduction of selling commissions and dealer manager fees, that is below net asset value per share.
As of March 12, 2018, the Registrant had 97,318,510 shares of common stock, $0.001 par value, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2017 Annual Meeting of Stockholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission not later than 120 days following the end of the Registrant’s fiscal year ended December 31, 2017.
 



SIERRA INCOME CORPORATION
TABLE OF CONTENTS
 
 
Page

2



PART I

In this annual report on Form 10-K, except as otherwise indicated, the terms:

“we”, “us”, “our”, “Sierra” and the “Company” refer to Sierra Income Corporation, a Maryland corporation.
“SIC Advisors” and the “Advisor” refer to SIC Advisors LLC, our investment advisor. SIC Advisors is a majority owned subsidiary of Medley LLC, which is controlled by Medley Management Inc., a publicly traded asset management firm, which in turn is controlled by Medley Group LLC, an entity wholly-owned by the senior professionals of Medley LLC.
“Medley” refers, collectively, to the activities and operations of Medley Capital LLC, Medley LLC, Medley Management Inc., Medley Group LLC, associated investment funds and their respective affiliates.
Item 1. Business
GENERAL
Sierra Income Corporation is a non-diversified closed-end management investment company incorporated in Maryland that has elected to be treated and is regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We are externally managed and advised by our investment adviser, SIC Advisors LLC (“SIC Advisors”) pursuant to an investment advisory agreement (the "Investment Advisory Agreement").
Our investment objective is to generate current income, and to a lesser extent, long-term capital appreciation. We intend to meet our investment objective by primarily lending to, and investing in, the debt of privately owned U.S. middle market companies, which we define as companies with annual revenue between $50 million and $1 billion. We intend to focus primarily on making investments in first lien senior secured debt, second lien secured debt, and to a lesser extent, subordinated debt, of middle market companies in a broad range of industries. We expect that the majority of our debt investments will bear interest at floating interest rates, but our portfolio may also include fixed-rate investments. We will originate transactions sourced through SIC Advisors’ existing network, and, to a lesser extent, expect to acquire debt securities through the secondary market. We may make equity investments in companies that we believe will generate appropriate risk adjusted returns, although we do not expect such investments to be a substantial portion of our portfolio.
Our Advisor
Our investment activities are managed by our investment adviser, SIC Advisors, which is a registered investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and a majority owned subsidiary of Medley LLC. SIC Advisors is responsible for sourcing potential investments, conducting due diligence on prospective investments, analyzing investment opportunities, structuring investments and monitoring our portfolio on an ongoing basis.
Our investment management team, which is provided by our Advisor (“SIC Advisors’ Investment Team” or the “Investment Team”), has on average over 20 years of experience in the credit business, including originating, underwriting, principal investing and loan structuring. Our Advisor, through Medley, has access to over 85 employees, including origination credit management, operations, marketing and distribution professionals, each with extensive experience in their respective disciplines.
Medley Capital LLC serves as our administrator, provides office space to us, and provides us with equipment and other office services. The responsibilities of our administrator include overseeing our financial records, preparing reports to our stockholders and reports filed with the Securities and Exchange Commission (the “SEC”) and generally monitoring the payment of our expenses and the performance of administrative and professional services rendered to us by others. See “Administration Agreement and Fees” below.
Formation
Sierra Income Corporation was incorporated under the general corporation laws of the State of Maryland on June 13, 2011.
On April 17, 2012, we successfully reached our minimum escrow requirement and officially commenced our operations by issuing 1,108,033 shares of common stock to SIC Advisors for gross proceeds of $10,000,000. Most recently, at a meeting held on March 8, 2018, our board of directors approved an extension of our offering for an additional year, which will extend the offering through April 17, 2019, unless further extended. As of March 12, 2018, we have sold a total of 97,318,510 shares of common stock for total gross proceeds of $920 million. The proceeds from the issuance of common stock are presented in our consolidated statements of changes in net assets and consolidated statements of cash flows and are presented net of selling commissions and dealer manager fees.

3



Investment Process
We believe our Advisor, which is provided for by Medley, has cultivated a disciplined and repeatable process for executing, monitoring, structuring and exiting investments.
Identification and Sourcing. Our Advisor’s experience and reputation have allowed it to generate what we believe to be a substantial and continuous flow of attractive investment opportunities. Our Advisor maintains a strong and diverse network which results in sustained and high quality deal flow. We believe that the breadth and depth of experience of SIC Advisors’ Investment Team across strategies and asset classes, coupled with significant relationships built over the last 20 years, make them particularly qualified to uncover, evaluate and aggressively pursue what we believe to be attractive investment opportunities. We believe that SIC Advisors’ Investment Team, by leveraging the broader Medley platform deal flow network has compiled a robust pipeline of transactions ready for possible inclusion in our portfolio.
Disciplined Underwriting. SIC Advisors’ Investment Team performs thorough due diligence and focuses on several key criteria in its underwriting process, including strong underlying business fundamentals, a meaningful equity cushion, experienced management, conservative valuation and the ability to deleverage through cash flows. We expect to often be the agent for the loans we originate and accordingly control the loan documentation and negotiation of covenants, which will allow us to maintain consistent underwriting standards. Our Advisor’s underwriting process also involves engagement of industry experts and third party consultants.
Prior to making an investment, the Investment Team subjects each potential borrower to an extensive credit review process, which typically begins with an analysis of the market opportunity, business fundamentals, company operating metrics and historical and projected financial analysis. The Investment Team also compares liquidity, operating margin trends, leverage, free cash flow and fixed charge coverage ratios for each potential investment to industry metrics. Areas of additional underwriting focus include management or sponsor (typically a private equity firm) experience, management compensation, competitive landscape, regulatory environment, pricing power, defensibility of market share and tangible asset values. Background checks are conducted and tax compliance information may also be requested on management teams and key employees. In addition, the Investment Team contacts customers, suppliers and competitors and performs on-site visits as part of a routine business due diligence process.
The Investment Team routinely uses third party consultants and market studies to corroborate valuation and industry specific due diligence, as well as provide quality of earnings analysis. Experienced legal counsel is engaged to evaluate and mitigate regulatory, insurance, tax or other company-specific risks.
After the Investment Team completes its final due diligence, each proposed investment is presented to our Advisor’s investment committee (the “Investment Committee”) and subjected to extensive discussion and follow-up analysis, if necessary. A formal memorandum for each investment opportunity typically includes the results of business due diligence, multi-scenario financial analysis, risk-management assessment, results of third-party consulting work, background checks (where applicable) and structuring proposals. Our Advisor’s Investment Committee requires a majority vote to approve any investment, although unanimous agreement is sought.
Active Credit Management. Our Advisor employs active credit management. Our Advisor’s process includes frequent interaction with management, monthly or quarterly review of financial information and attendance at board of directors’ meetings as observers. The Investment Team also evaluates financial reporting packages provided by portfolio companies that detail operational and financial performance. Data is entered in our Advisor’s Asset Management System (“AMS”), a centralized electronic credit management database. AMS creates a centralized, dynamic electronic repository for all of our portfolio company data. Our Advisor’s AMS system generates comprehensive, standardized reports which aggregate operational updates, portfolio company financial performance, asset valuations, macro trends, management call notes and account history. AMS enables the Investment Team to have real-time access to the most recent information on our portfolio investments.
In addition to the data provided by our borrowers, our Advisor may also utilize various third parties to provide checks and balances throughout the credit management process. Independent valuation firms may be engaged to provide appraisals of asset and collateral values or external forensic accounting groups may be engaged to verify portfolio company financial reporting or perform cash reconciliation. Our Advisor believes this hands-on approach to credit management is a key contributor to our investment performance.
Investment Structure
For newly originated investments, SIC Advisors strives to negotiate an optimal combination of current and deferred interest payments, equity participation and prepayment penalties, along with suitable covenants and creditor rights which may generally be greater than the rights normally obtained by institutional investors in comparable transactions and may include such provisions as: specific rights to consult with and advise management, the right to inspect company books, records or facilities, as well as the right to review balance sheets and/or statements of income and cash flows of the company. SIC Advisors determines whether the investment structure, particularly the amount of debt, is appropriate for the portfolio company’s business, sometimes reassessing the investment’s risk/

4



return profile and adjusting pricing and other terms as necessary. The Investment Team has in-depth restructuring, liquidation and bankruptcy experience which is vital to success as a lender over market cycles.
Investment Committee
The purpose of the Investment Committee is to evaluate and approve investments proposed by SIC Advisors’ Investment Team. The Investment Committee is comprised of members selected from senior members of SIC Advisors’ Investment Team. Approval of an investment requires a majority vote of the Investment Committee, although unanimous agreement is sought. The committee process is intended to bring the diverse experience and perspectives of the committee members to the analysis and consideration of every investment. The Investment Committee also serves to provide consistency and adherence to SIC Advisors’ investment philosophies and policies. The Investment Committee also determines appropriate investment sizing and suggests ongoing monitoring requirements.
In addition to reviewing investments, the Investment Committee meetings serve as a forum to discuss credit views and outlooks. Potential transactions and deal flow are also reviewed on a regular basis. Members of the Investment Team are encouraged to share information and views on credits with the committee early in their analysis and throughout the evaluation process. This process improves the quality of the analysis and assists the deal team members to work more efficiently.
Managerial Assistance
As a BDC, we offer, and must provide upon request, managerial assistance to certain of our portfolio companies. This assistance could involve, among other things, monitoring the operations of our portfolio companies, participating in board and management meetings, consulting with and advising officers of portfolio companies and providing other organizational and financial guidance. We may receive fees for these services and will reimburse Medley, as our administrator, for its allocated costs in providing such assistance, subject to review and approval by our board of directors. Medley will provide such managerial assistance on our behalf to portfolio companies that request this assistance.
Competition
Our primary competitors to provide financing to private and middle-market companies are public and private funds, commercial banks, commercial finance companies, other BDCs, small business investment companies and private equity and hedge funds. Some competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or to the distribution and other requirements we must satisfy to maintain our favorable RIC tax treatment.
Staffing
We do not currently have any employees and do not expect to have any employees. Services necessary for our business are provided by individuals who are employees of SIC Advisors and Medley, pursuant to the terms of the Investment Advisory Agreement and the Administration Agreement. Our day-to-day investment operations are managed by our Advisor. In addition, we reimburse Medley for our allocable portion of expenses incurred by it in performing its obligations under the administration agreement, including our allocable portion of the cost of our officers and their respective staffs.
Administration
We have entered into an administration agreement with Medley Capital LLC (the “Administration Agreement”) pursuant to which Medley Capital LLC furnishes us with administrative services necessary to conduct our day-to-day operations. Medley Capital LLC is reimbursed for administrative expenses it incurs on our behalf in performing its obligations. Such costs are reasonably allocated to us on the basis of assets, revenues, time records or other reasonable methods. We do not reimburse Medley Capital LLC for any services for which it receives a separate fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of Medley Capital LLC. Medley Capital LLC is an affiliate of SIC Advisors. See “Administration Agreement and Fees.”
Information Available
We maintain a website at http://www.sierraincomecorp.com. We make available, free of charge, on our website, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Information contained on our website is not incorporated by reference into this annual report on Form 10-K and you should not consider information contained on our website to be part of this annual report on Form 10-K or any other report we file with the SEC.

5



You may also read and copy any materials we file with the SEC at the SEC’s Public Reference Room located at 100 F Street, NE, Washington, DC 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. In addition, any materials we file with the SEC are available on the EDGAR Database on the SEC’s Internet site at http://www.sec.gov.
INVESTMENTS
We have built an investment portfolio that includes senior secured first lien term loans, senior secured second lien term loans, senior secured first lien notes, subordinated notes and equity/warrants.
The following table shows the investment portfolio composition by industry classification at fair value as of December 31, 2017, exclusive of the underlying total return swap portfolio:
 
Fair Value
 
Percentage
Multi-Sector Holdings
$
153,856,797

 
14.5
%
Services:  Business
146,953,643

 
13.8

Healthcare & Pharmaceuticals
91,755,106

 
8.6

High Tech Industries
72,406,421

 
6.8

Aerospace & Defense
66,643,836

 
6.3

Banking, Finance, Insurance & Real Estate
63,954,055

 
6.0

Chemicals, Plastics & Rubber
21,154,595

 
2.0

Construction & Building
53,936,884

 
5.1

Hotel, Gaming & Leisure
44,379,508

 
4.2

Transportation:  Cargo
36,660,325

 
3.4

Energy:  Oil & Gas
34,983,825

 
3.3

Beverage & Food
31,625,675

 
3.0

Telecommunications
25,579,647

 
2.4

Media: Advertising, Printing & Publishing
24,692,940

 
2.3

Containers, Packaging & Glass
22,128,034

 
2.1

Metals & Mining
21,202,310

 
2.0

Retail
19,931,113

 
1.9

Automotive
16,154,337

 
1.5

Capital Equipment
14,726,702

 
1.4

Media: Diversified & Production
14,471,721

 
1.4

Media:  Broadcasting & Subscription
13,438,549

 
1.3

Wholesale
47,202,110

 
4.4

Services:  Consumer
8,631,158

 
0.8

Transportation:  Consumer
7,614,095

 
0.7

Consumer Goods:  Non-durable
5,942,867

 
0.6

Environmental Industries
4,082,837

 
0.4

Total
$
1,064,109,090

 
100.0
%

The following table sets forth certain information for each portfolio company in which we had an investment as of December 31, 2017. Other than these portfolio investments, our only formal relationships with our portfolio companies are the managerial assistance that we may provide upon their request and the board observer or participation rights we may receive in connection with our investment portfolio.
Company(1)(2)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of Net Assets
Non-controlled/non-affiliated investments – 124.0%
 
 
 
 
 
 
 
$
739,986,569

AAAHI Acquisition Corporation
 
Transportation: Consumer
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor (4) (5)
 
12/15/2021
 
$
7,098,364

 
$
7,098,364

 
$
7,098,364

 
1.0%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor (4)(5)(6) 
 
12/14/2018
 
515,730

 
515,730

 
515,730

 
0.1%
 
 
 
 
 
 
 
 
7,614,094

 
7,614,094

 
7,614,094

 
 

6



Company(1)(2)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of Net Assets
Advanced Diagnostic Holdings, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 0.875% Floor (4)(5)
 
12/11/2020
 
14,582,109

 
14,582,109

 
14,582,109

 
2.0%
 
 
 
 
 
 
 
 
14,582,109

 
14,582,109

 
14,582,109

 
 
Alpha Media LLC
 
Media: Broadcasting & Subscription
 
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (7)
 
2/25/2022
 
6,166,263

 
5,961,599

 
5,917,762

 
0.8%
 
 
 
 
 
 
 
 
6,166,263

 
5,961,599

 
5,917,762

 
 
 Alpine SG, LLC
 
 High Tech Industries
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor (4)(5)(6)
 
11/16/2022
 
4,642,857

 
4,642,857

 
4,642,857

 
0.6%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor (4)(5)
 
11/16/2022
 
13,500,000

 
13,500,000

 
13,500,000

 
1.8%
 
 
 
 
 
 
 
 
18,142,857

 
18,142,857

 
18,142,857

 
 
American Dental Partners, Inc.
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor (4)(5)
 
9/25/2023
 
7,250,000

 
7,250,000

 
7,337,000

 
1.0%
 
 
 
 
 
 
 
 
7,250,000

 
7,250,000

 
7,337,000

 
 
Amerijet Holdings, Inc.
 
Transportation: Cargo
 
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor (5)(7)
 
7/15/2021
 
13,349,908

 
13,349,908

 
13,616,906

 
1.8%
 
 
 
 
 
 
 
 
13,349,908

 
13,349,908

 
13,616,906

 
 
AMMC CLO 17, Limited Series 2015-17A
 
Multi-Sector Holdings
 
Subordinated Notes 16.471% effective yield (8) (9) (10)
 
11/15/2027
 
5,000,000

 
3,537,556

 
4,237,500

 
0.6%
 
 
 
 
 
 
 
 
5,000,000

 
3,537,556

 
4,237,500

 
 
Anaren, Inc.
 
Aerospace & Defense
 
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor (4)
 
8/18/2021
 
10,000,000

 
9,941,988

 
10,000,000

 
1.4%
 
 
 
 
 
 
 
 
10,000,000

 
9,941,988

 
10,000,000

 
 
Answers Finance, LLC
 
High Tech Industries
 
Senior Secured First Lien Term Loan Base Rate + 5.000%
 
4/15/2021
 
1,288,514

 
1,288,514

 
1,288,514

 
0.2%
 
 
 
 
Senior Secured Second Lien Term Loan Base Rate + 4.500% (19)
 
9/15/2021
 
2,003,594

 
2,003,594

 
2,003,594

 
0.3%
 
 
 
 
Common Stock  - 1,936 shares (11)
 
 
 

 
5,426,955

 
5,426,195

 
0.7%
 
 
 
 
 
 
 
 
3,292,108

 
8,719,063

 
8,718,303

 
 
APCO Holdings, Inc.
 
Automotive
 
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (5)(7)
 
1/31/2022
 
4,124,797

 
4,033,466

 
4,124,797

 
0.6%
 
 
 
 
 
 
 
 
4,124,797

 
4,033,466

 
4,124,797

 
 
Apidos CLO XXIV, Series 2016-24A
 
Multi-Sector Holdings
 
Subordinated Notes 8.748% effective yield (5)(8)(9)(10)
 
7/20/2027
 
18,357,647

 
14,627,243

 
14,497,034

 
2.0%
 
 
 
 
 
 
 
 
18,357,647

 
14,627,243

 
14,497,034

 
 
Asurion, LLC
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured Second Lien Term Loan LIBOR + 6.000%, 1.000% Floor (4)(5)
 
8/4/2025
 
5,950,000

 
5,950,000

 
6,069,000

 
0.8%
 
 
 
 
 
 
 
 
5,950,000

 
5,950,000

 
6,069,000

 
 
Aviation Technical Services, Inc.
 
Aerospace & Defense
 
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor (4)(5)(12) 
 
3/31/2022
 
25,000,000

 
25,000,000

 
25,000,000

 
3.4%
 
 
 
 
 
 
 
 
25,000,000

 
25,000,000

 
25,000,000

 
 
Barry's Bootcamp Holdings, LLC
 
Services: Consumer
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor (4)(5)(6) 
 
7/14/2022
 
8,571,429

 
8,571,429

 
8,571,429

 
1.2%
 
 
 
 
 
 
 
 
8,571,429

 
8,571,429

 
8,571,429

 
 
Birch Communications Inc.
 
Telecommunications
 
Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.000% Floor (5)(7)
 
7/17/2020
 
13,066,112

 
12,945,213

 
12,944,597

 
1.7%

7



Company(1)(2)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of Net Assets
 
 
 
 
 
 
 
 
13,066,112

 
12,945,213

 
12,944,597

 
 
Black Angus Steakhouses, LLC
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor (4)(5)(6)(12)
 
4/24/2020
 
892,857

 
892,857

 
725,670

 
0.1%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor (4)\(5)(12)
 
4/24/2020
 
19,123,884

 
19,123,884

 
18,399,089

 
2.5%
 
 
 
 
 
 
 
 
20,016,741

 
20,016,741

 
19,124,759

 
 
Brook & Whittle Holding Corp.
 
Containers, Packaging & Glass
 
Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor (4)(5)(6)
 
10/17/2023
 
3,041,785

 
3,041,785

 
3,041,785

 
0.4%
 
 
 
 
 
 
 
 
3,041,785

 
3,041,785

 
3,041,785

 
 
Central States Dermatology Services, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor (5)(6)(7) 
 
4/20/2022
 
2,975,910

 
2,975,910

 
2,975,910

 
0.4%
 
 
 
 
 
 
 
 
2,975,910

 
2,975,910

 
2,975,910

 
 
Charming Charlie LLC
 
Retail
 
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor, 1.500% PIK (4)(13)
 
12/24/2019
 
14,078,861

 
8,212,738

 
422,366

 
0.1%
 
 
 
 
Senior Secured First Lien Term Loan Base Rate + 3.500% (6)(19)
 
6/8/2018
 
1,215,520

 
1,215,520

 
1,215,520

 
 
 
 
 
 
 
 
 
 
15,294,381

 
9,428,258

 
1,637,886

 
 
Covenant Surgical Partners, Inc.
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan LIBOR + 4.750%, 1.000% Floor (5)(7)
 
10/4/2024
 
5,384,615

 
5,371,504

 
5,384,615

 
0.8%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 4.750%, 1.000% Floor (5)(6)(7) 
 
10/4/2024
 
297,949

 
294,015

 
297,949

 
 
 
 
 
 
 
 
 
 
5,682,564

 
5,665,519

 
5,682,564

 
 
CP Opco, LLC
 
Services: Consumer
 
Senior Secured First Lien Term Loan Base Rate + 5.500%, PIK (5)(13)
 
4/1/2019
 
224,970

 
209,515

 
59,729

 
0.0%
 
 
 
 
Senior Secured First Lien Term Loan Base Rate + 8.500%, PIK (5)(13)
 
4/1/2019
 
1,655,407

 
717,016

 

 
0.0%
 
 
 
 
Preferred Units LIBOR+9.500%, 1.000% Floor, PIK(4)(5)(12)  
 
 
 

 

 

 
0.0%
 
 
 
 
Common Units - 41 units(5)(11) 
 
 
 

 

 

 
0.0%
 
 
 
 
 
 
 
 
1,880,377

 
926,531

 
59,729

 
 
CPI International, Inc.
 
Aerospace & Defense
 
Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor (5)(7)
 
7/28/2025
 
12,345,000

 
12,300,357

 
12,283,275

 
1.7%
 
 
 
 
 
 
 
 
12,345,000

 
12,300,357

 
12,283,275

 
 
CSP Technologies North America, LLC
 
Containers, Packaging & Glass
 
Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor (4)(5)
 
1/31/2022
 
4,948,749

 
4,948,749

 
4,948,749

 
0.7%
 
 
 
 
 
 
 
 
4,948,749

 
4,948,749

 
4,948,749

 
 
CSTN Merger Sub Inc.
 
Chemicals, Plastics & Rubber
 
Senior Secured First Lien Term Loan 6.750% (5)(8)(14)
 
8/15/2024
 
2,500,000

 
2,500,000

 
2,487,750

 
0.3%
 
 
 
 
 
 
 
 
2,500,000

 
2,500,000

 
2,487,750

 
 
Deliver Buyer, Inc.
 
Services: Business
 
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor (4)
 
5/1/2024
 
3,034,875

 
3,017,378

 
3,034,875

 
0.4%
 
 
 
 
 
 
 
 
3,034,875

 
3,017,378

 
3,034,875

 
 
DHISCO Electronic Distribution, Inc.
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.500% Floor (5)(7)
 
11/10/2019
 
2,567,024

 
2,567,024

 
2,567,024

 
0.3%

8



Company(1)(2)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of Net Assets
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 11.000%, 1.500% Floor, PIK (5)(7)(13) 
 
11/10/2019
 
9,501,965

 
9,207,947

 
3,834,043

 
0.5%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 12.250%, 1.500% Floor, PIK (5)(7)(13) 
 
11/10/2019
 
8,250,230

 
7,257,481

 

 
0.0%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 13.250%, 1.500% Floor, PIK (5)(7)(13) 
 
11/10/2019
 
7,754,662

 
2,940,892

 

 
0.0%
 
 
 
 
Common Units - 769,230 units (5)(11)
 
 
 

 
769,231

 

 
0.0%
 
 
 
 
 
 
 
 
28,073,881

 
22,742,575

 
6,401,067

 
 
Drew Marine Partners, LP
 
Transportation: Cargo
 
Senior Secured Second Lien Term Loan LIBOR + 7.000%, 1.000% Floor (7)
 
5/19/2021
 
10,000,000

 
10,048,123

 
10,000,000

 
1.4%
 
 
 
 
 
 
 
 
10,000,000

 
10,048,123

 
10,000,000

 
 
Dryden 38 Senior Loan Fund, Series 2015-38A
 
Multi-Sector Holdings
 
Subordinated Notes 13.246% effective yield (8)(9)(10) 
 
7/15/2027
 
7,000,000

 
4,919,153

 
5,032,300

 
0.7%
 
 
 
 
 
 
 
 
7,000,000

 
4,919,153

 
5,032,300

 
 
Dryden 43 Senior Loan Fund, Series 2016-43A
 
Multi-Sector Holdings
 
Subordinated Notes 10.546% effective yield (5) (8) (9) (10)
 
7/20/2029
 
3,620,000

 
2,954,917

 
2,874,642

 
0.4%
 
 
 
 
 
 
 
 
3,620,000

 
2,954,917

 
2,874,642

 
 
Dryden 49 Senior Loan Fund, Series 2017-49A
 
Multi-Sector Holdings
 
Subordinated Notes 13.408% effective yield (5) (9) (10)
 
7/18/2030
 
17,233,288

 
15,325,601

 
15,777,075

 
2.1%
 
 
 
 
 
 
 
 
17,233,288

 
15,325,601

 
15,777,075

 
 
Dynamic Energy Services International LLC
 
Energy: Oil & Gas
 
Senior Secured First Lien Term Loan 13.500% PIK + LIBOR (5) (7)
 
6/6/2018
 
9,910,049

 
9,910,049

 
8,435,434

 
1.1%
 
 
 
 
 
 
 
 
9,910,049

 
9,910,049

 
8,435,434

 
 
Elite Comfort Solutions LLC
 
Chemicals, Plastics & Rubber
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor (6)(7)
 
1/15/2021
 
9,666,845

 
9,666,845

 
9,666,845

 
1.3%
 
 
 
 
 
 
 
 
9,666,845

 
9,666,845

 
9,666,845

 
 
Engineered Machinery Holdings, Inc.
 
Capital Equipment
 
Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor (4)(5)
 
7/18/2025
 
2,010,638

 
1,991,468

 
1,990,532

 
0.3%
 
 
 
 
Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor (4)(5)(6)
 
7/18/2025
 
201,064

 
201,064

 
198,670

 
0.0%
 
 
 
 
 
 
 
 
2,211,702

 
2,192,532

 
2,189,202

 
 
First Boston Construction Holdings, LLC
 
Banking, Finance, Insurance & Real Estate
 
Senior secured first lien notes 12.000% (5)
 
12/31/2020
 
6,585,000

 
6,585,000

 
6,610,023

 
0.9%
 
 
 
 
Preferred Equity - 1,646,250 units (5) (11)
 
 
 

 
1,646,250

 
1,646,250

 
0.2%
 
 
 
 
 
 
 
 
6,585,000

 
8,231,250

 
8,256,273

 
 
FKI Security Group, LLC
 
Capital Equipment
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor (5) (7)
 
3/30/2020
 
11,562,500

 
11,562,500

 
11,562,500

 
1.6%
 
 
 
 
 
 
 
 
11,562,500

 
11,562,500

 
11,562,500

 
 
Friedrich Holdings, Inc.
 
Construction & Building
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor (5) (7)
 
2/7/2023
 
13,806,751

 
13,806,751

 
14,004,188

 
1.9%
 
 
 
 
 
 
 
 
13,806,751

 
13,806,751

 
14,004,188

 
 
Frontier Communications Corp.
 
Telecommunications
 
Senior secured first lien notes 10.500% (8) (9)
 
9/15/2022
 
2,000,000

 
2,000,000

 
1,513,800

 
0.2%
 
 
 
 
 
 
 
 
2,000,000

 
2,000,000

 
1,513,800

 
 
Genex Holdings, Inc.
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured First Lien Term Loan LIBOR + 4.250%, 1.000% Floor (7)
 
5/28/2021
 
4,141,927

 
4,095,099

 
4,141,927

 
0.6%

9



Company(1)(2)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of Net Assets
 
 
 
 
Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor (7)
 
5/30/2022
 
9,500,000

 
9,521,331

 
9,448,700

 
1.3%
 
 
 
 
 
 
 
 
13,641,927

 
13,616,430

 
13,590,627

 
 
GK Holdings, Inc.
 
Services: Business
 
Senior Secured Second Lien Term Loan LIBOR + 10.250%, 1.000% Floor (4)
 
1/20/2022
 
10,000,000

 
10,000,000

 
9,752,000

 
1.3%
 
 
 
 
 
 
 
 
10,000,000

 
10,000,000

 
9,752,000

 
 
Global Eagle Entertainment, Inc.
 
Telecommunications
 
Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor (5) (15)
 
1/6/2023
 
4,121,250

 
4,053,177

 
4,121,250

 
0.6%
 
 
 
 
 
 
 
 
4,121,250

 
4,053,177

 
4,121,250

 
 
Green Field Energy Services, Inc.
 
Energy: Oil & Gas
 
Senior Secured First Lien Notes 13.000% (5) (8) (13)
 
11/15/2016
 
766,616

 
754,615

 
122,658

 
0.0%
 
 
 
 
Warrants - 0.00% of outstanding equity (5) (11)
 
 
 

 
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 (4)(5)
 
3/30/2020
 
12,262,500

 
12,262,500

 
12,252,690

 
1.7%
 
 
 
 
 
 
 
 
12,262,500

 
12,262,500

 
12,252,690

 
 
Heligear Acquisition Co.
 
Aerospace & Defense
 
Senior secured first lien notes 10.250% (5) (8)
 
10/15/2019
 
15,000,000

 
15,000,000

 
15,318,000

 
2.1%
 
 
 
 
 
 
 
 
15,000,000

 
15,000,000

 
15,318,000

 
 
High Ridge Brands Co.
 
Consumer Goods: Non-Durable
 
Senior secured first lien notes 8.875% (5) (8)
 
3/15/2025
 
2,000,000

 
2,000,000

 
1,776,200

 
0.2%
 
 
 
 
 
 
 
 
2,000,000

 
2,000,000

 
1,776,200

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

 
4,503,823

 
3,216,465

 
0.4%
 
 
 
 
 
 
 
 
4,515,605

 
4,503,823

 
3,216,465

 
 
Hylan Datacom & Electrical LLC
 
Construction & Building
 
Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor (5) (7)
 
7/25/2021
 
15,059,976

 
15,059,976

 
15,210,575

 
2.1%
 
 
 
 
 
 
 
 
15,059,976

 
15,059,976

 
15,210,575

 
 
Ignite Restaurant Group, Inc.
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan Base Rate + 6.000% (13)(19)
 
2/13/2019
 
6,354,341

 
6,140,155

 
217,318

 
0.0%
 
 
 
 
 
 
 
 
6,354,341

 
6,140,155

 
217,318

 
 
IHS Intermediate, Inc.
 
Services: Business
 
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor (4)
 
7/20/2022
 
25,000,000

 
25,000,000

 
25,000,000

 
3.4%
 
 
 
 
 
 
 
 
25,000,000

 
25,000,000

 
25,000,000

 
 
Imagine! Print Solutions, LLC
 
Media: Advertising, Printing & Publishing
 
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor (4)(5)(16)
 
6/21/2023
 
8,950,000

 
8,826,856

 
8,815,750

 
1.2%
 
 
 
 
 
 
 
 
8,950,000

 
8,826,856

 
8,815,750

 
 
Impact Sales, LLC
 
Services: Business
 
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor (4)(5)(6)
 
12/30/2021
 
4,853,857

 
4,853,857

 
4,720,525

 
0.6%
 
 
 
 
 
 
 
 
4,853,857

 
4,853,857

 
4,720,525

 
 
Interflex Acquisition Company, LLC
 
Containers, Packaging & Glass
 
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor (5)(7)
 
8/18/2022
 
14,137,500

 
14,137,500

 
14,137,500

 
1.9%
 
 
 
 
 
 
 
 
14,137,500

 
14,137,500

 
14,137,500

 
 
Invision Diversified, LLC
 
Services: Business
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor (5)(7)(12)
 
6/30/2020
 
23,866,435

 
23,866,435

 
24,105,100

 
3.3%
 
 
 
 
 
 
 
 
23,866,435

 
23,866,435

 
24,105,100

 
 

10



Company(1)(2)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of Net Assets
IOP Monroe Acquisition, Inc.
 
Capital Equipment
 
Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor (5)(6)(7)
 
4/1/2022
 
975,000

 
975,000

 
975,000

 
0.1%
 
 
 
 
 
 
 
 
975,000

 
975,000

 
975,000

 
 
Isola USA Corp.
 
High Tech Industries
 
Senior Secured First Lien Term Loan LIBOR + 8.250%, 1.000% Floor (4)(13)
 
11/29/2018
 
9,131,742

 
7,707,403

 
5,547,533

 
0.7%
 
 
 
 
 
 
 
 
9,131,742

 
7,707,403

 
5,547,533

 
 
Keystone Acquisition Corp.
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan LIBOR + 9.250%, 1.000% Floor (4)(5)(16)
 
5/1/2025
 
7,000,000

 
6,870,343

 
6,898,500

 
0.9%
 
 
 
 
 
 
 
 
7,000,000

 
6,870,343

 
6,898,500

 
 
L&S Plumbing Partnership, Ltd.
 
Construction & Building
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor (4) (5)
 
2/15/2022
 
11,562,500

 
11,562,500

 
11,709,344

 
1.6%
 
 
 
 
 
 
 
 
11,562,500

 
11,562,500

 
11,709,344

 
 
Lighthouse Network, LLC
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor (5)(7)(16) 
 
11/28/2025
 
9,950,000

 
9,851,416

 
9,850,500

 
 
 
 
 
 
 
 
 
 
9,950,000

 
9,851,416

 
9,850,500

 
 
Livingston International Inc.
 
Transportation: Cargo
 
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.250% Floor (4)(9)
 
4/17/2020
 
4,613,287

 
4,480,497

 
4,520,560

 
0.6%
 
 
 
 
 
 
 
 
4,613,287

 
4,480,497

 
4,520,560

 
 
LSF9 Atlantis Holdings, LLC
 
Retail
 
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (5)(7)
 
5/1/2023
 
6,621,575

 
6,569,770

 
6,621,575

 
0.9%
 
 
 
 
 
 
 
 
6,621,575

 
6,569,770

 
6,621,575

 
 
LTCG Holdings Corp.
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor (4)
 
6/6/2020
 
2,838,571

 
2,832,091

 
2,737,234

 
0.4%
 
 
 
 
 
 
 
 
2,838,571

 
2,832,091

 
2,737,234

 
 
Magnetite XIX, Limited
 
Multi-Sector Holdings
 
Subordinated Notes LIBOR + 7.610% (8)(9)(10)
 
7/17/2030
 
2,000,000

 
1,875,000

 
1,875,000

 
0.3%
 
 
 
 
Subordinated Notes 14.525% effective yield (5)(8)(9)(10)
 
7/17/2030
 
13,730,209

 
12,256,271

 
12,255,585

 
1.7%
 
 
 
 
 
 
 
 
15,730,209

 
14,131,271

 
14,130,585

 
 
Manna Pro Products, LLC
 
Consumer Goods: Non-durable
 
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (4)(5)(6)
 
12/8/2023
 
4,166,667

 
4,166,667

 
4,166,667

 
 
 
 
 
 
 
 
 
 
4,166,667

 
4,166,667

 
4,166,667

 
 
Nathan's Famous Inc.
 
Beverage & Food
 
Senior secured first lien notes 6.625% (5)(8)(9)(14)
 
11/1/2025
 
4,950,000

 
4,967,041

 
5,144,535

 
0.7%
 
 
 
 
 
 
 
 
4,950,000

 
4,967,041

 
5,144,535

 
 
New Media Holdings II LLC
 
Media: Advertising, Printing & Publishing
 
Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor (4)(5)(16)
 
7/14/2022
 
15,877,190

 
15,867,455

 
15,877,190

 
2.1%
 
 
 
 
 
 
 
 
15,877,190

 
15,867,455

 
15,877,190

 
 
Novetta Solutions, LLC
 
High Tech Industries
 
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor (4)
 
10/16/2023
 
11,000,000

 
10,915,540

 
10,225,600

 
1.4%
 
 
 
 
 
 
 
 
11,000,000

 
10,915,540

 
10,225,600

 
 
Nuspire, LLC
 
High Tech Industries
 
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (4)(5)(6)
 
11/8/2022
 
6,310,000

 
6,310,000

 
6,310,000

 
0.9%
 
 
 
 
 
 
 
 
6,310,000

 
6,310,000

 
6,310,000

 
 
Omnitracs, LLC
 
Telecommunications
 
Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor (4)
 
5/25/2021
 
7,000,000

 
7,009,042

 
7,000,000

 
0.9%
 
 
 
 
 
 
 
 
7,000,000

 
7,009,042

 
7,000,000

 
 

11



Company(1)(2)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of Net Assets
Oxford Mining Company, LLC
 
Metals & Mining
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 0.750% Floor, 3.000% PIK (4)(5)
 
12/31/2018
 
12,450,782

 
12,450,782

 
12,450,782

 
1.7%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 8.500%, 0.750% Floor, 3.000% PIK (4)(5)
 
12/31/2018
 
8,751,527

 
8,751,527

 
8,751,527

 
1.2%
 
 
 
 
 
 
 
 
21,202,309

 
21,202,309

 
21,202,309

 
 
Path Medical, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor (4)(5)
 
10/11/2021
 
14,815,737

 
14,339,545

 
14,894,260

 
2.0%
 
 
 
 
Warrants - 2.09%  of outstanding equity  (5)(11)
 
 
 

 
669,709

 
111,251

 
0.0%
 
 
 
 
 
 
 
 
14,815,737

 
15,009,254

 
15,005,511

 
 
Payless Holdings LLC
 
Retail
 
Common Stock - 37,126 shares (11)
 
 
 

 
543,120

 
543,153

 
0.1%
 
 
 
 
 
 
 
 

 
543,120

 
543,153

 
 
Petco Animal Supplies, Inc.
 
Retail
 
Senior Secured First Lien Term Loan LIBOR + 3.000%, 1.000% Floor (4)(16)
 
1/26/2023
 
1,984,848

 
1,844,566

 
1,493,598

 
0.2%
 
 
 
 
 
 
 
 
1,984,848

 
1,844,566

 
1,493,598

 
 
PetroChoice Holdings, Inc.
 
Chemicals, Plastics & Rubber
 
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor (4)(5)(12)(16) 
 
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
 
Energy: Oil & Gas
 
Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor (4)
 
7/27/2020
 
5,933,969

 
4,953,814

 
5,454,504

 
0.7%
 
 
 
 
 
 
 
 
5,933,969

 
4,953,814

 
5,454,504

 
 
Press Ganey Holdings, Inc
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan LIBOR + 6.500%, 1.000% Floor (7)
 
10/21/2024
 
8,753,172

 
8,823,199

 
8,753,172

 
1.2%
 
 
 
 
 
 
 
 
8,753,172

 
8,823,199

 
8,753,172

 
 
PT Network, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor (4)(5)(6)
 
11/30/2021
 
8,042,410

 
8,042,410

 
8,042,410

 
1.1%
 
 
 
 
 
 
 
 
8,042,410

 
8,042,410

 
8,042,410

 
 
Reddy Ice Corporation
 
Beverage & Food
 
Senior Secured Second Lien Term Loan LIBOR + 9.500%, 1.250% Floor (4)(5)
 
11/1/2019
 
2,000,000

 
2,000,000

 
1,913,600

 
0.3%
 
 
 
 
 
 
 
 
2,000,000

 
2,000,000

 
1,913,600

 
 
RESIC Enterprises, LLC
 
Beverage & Food
 
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor (5)(7)
 
11/10/2025
 
15,000,000

 
15,000,000

 
15,000,000

 
2.0%
 
 
 
 
 
 
 
 
15,000,000

 
15,000,000

 
15,000,000

 
 
Resolute Investment Managers, Inc.
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured Second Lien Term Loan LIBOR + 7.500%, 1.000% Floor (4)(5)
 
4/30/2023
 
9,950,000

 
9,866,809

 
9,950,000

 
1.3%
 
 
 
 
 
 
 
 
9,950,000

 
9,866,809

 
9,950,000

 
 
Rhombus Cinema Holdings, LP
 
Media: Diversified & Production
 
Preferred Equity 10.000% PIK - 7,449 shares (5)(9)
 
 
 

 
4,584,207

 
5,123,448

 
0.7%
 
 
 
 
Common Units - 3,163 units (5)(9)(11) 
 
 
 

 
3,162,793

 
1,848,273

 
0.2%
 
 
 
 
 
 
 
 

 
7,747,000

 
6,971,721

 
 
RMS Holding Company, LLC
 
Services: Business
 
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (4)(5)
 
11/16/2022
 
14,962,500

 
14,962,500

 
14,962,500

 
2.0%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (4)(5)(6)
 
11/16/2022
 
1,262,593

 
1,262,593

 
1,262,593

 
0.2%
 
 
 
 
 
 
 
 
16,225,093

 
16,225,093

 
16,225,093

 
 

12



Company(1)(2)
 
Industry
 
Type of Investment
 
Maturity
 
Par
Amount
 
Cost
 
Fair Value
 
% of Net Assets
SavATree, LLC
 
Environmental Industries
 
Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor (5)(6)(7)
 
6/2/2022
 
4,058,089

 
4,058,089

 
4,082,837

 
0.6%
 
 
 
 
 
 
 
 
4,058,089

 
4,058,089

 
4,082,837

 
 
SFP Holding, Inc.
 
Construction & Building
 
Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor (4)(5)(6)
 
9/1/2022
 
4,277,778

 
4,277,778

 
4,277,778

 
0.6%
 
 
 
 
Equity - 0.94% of outstanding equity (5) (11)
 
 
 

 
400,000

 
400,000

 
0.1%
 
 
 
 
 
 
 
 
4,277,778

 
4,677,778

 
4,677,778

 
 
Ship Supply Acquisition Corporation
 
Services: Business
 
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor (4)(5)
 
7/31/2020
 
22,187,500

 
22,187,500

 
21,284,469

 
2.9%
 
 
 
 
 
 
 
 
22,187,500

 
22,187,500

 
21,284,469

 
 
Simplified Logistics, LLC
 
Services: Business
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor (4)(5)(6)
 
2/28/2022
 
402,500

 
402,500

 
402,500

 
0.1%
 
 
 
 
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor (4)(5)(6)
 
2/28/2022
 
17,855,593

 
17,855,593

 
17,855,593

 
 
 
 
 
 
 
 
 
 
18,258,093

 
18,258,093

 
18,258,093

 
 
Sizzling Platter, LLC
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor (7)
 
4/28/2020
 
15,000,000

 
15,000,000

 
15,000,000

 
2.0%
 
 
 
 
 
 
 
 
15,000,000

 
15,000,000

 
15,000,000

 
 
SMART Financial Operations, LLC
 
Retail
 
Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor (4)(5)(6) 
 
11/22/2021
 
3,700,000

 
3,700,000

 
3,798,000