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EX-32.1 - EXHIBIT 32.1 - Medley Capital Corpexhibit321123119.htm
EX-31.2 - EXHIBIT 31.2 - Medley Capital Corpexhibit312123119.htm
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EX-21.1 - EXHIBIT 21.1 - Medley Capital Corpexhibit211123119.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

Form 10-Q
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the Quarterly Period Ended December 31, 2019
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)
 _____________________________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $0.001 per share
 
MCC
 
The New York Stock Exchange
6.500% Notes due 2021
 
MCX
 
The New York Stock Exchange
6.125% Notes due 2023
 
MCV
 
The New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

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 every Interactive Data File required to be submitted 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 such files). Yes ¨ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 ¨      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 10, 2020.



MEDLEY CAPITAL CORPORATION

TABLE OF CONTENTS
 
 
Part I. Financial Information
 
 
 
Item 1. Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
                         Notes to Consolidated Financial Statements (unaudited)
 
 
 
 
 
 
 
 
Part II. Other Information
 
 
 
 
 
Item 1A. Risk Factors
 
 
 
 
 
 
 
 
 
 
Item 6. Exhibits
 
 
SIGNATURES





Medley Capital Corporation

Consolidated Statements of Assets and Liabilities

 
December 31, 2019
 
September 30, 2019
 
(unaudited)
 
 
ASSETS
 
 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (amortized cost of $149,985,257 and $204,736,370, respectively)
$
138,891,727

 
$
189,895,466

Affiliated investments (amortized cost of $107,911,002 and $108,310,029, respectively)
108,581,177

 
99,539,605

Controlled investments (amortized cost of $151,135,560 and $154,601,177, respectively)
94,531,196

 
107,453,927

Total investments at fair value
342,004,100


396,888,998

Cash and cash equivalents
81,737,217

 
68,245,213

Restricted cash (see Note 2)

 
16,038,690

Other assets (see Note 8)
6,137,344

 
2,973,731

Interest receivable
1,220,863

 
1,592,406

Receivable for dispositions and investments sold
631,816

 
419,299

Fees receivable
51,762

 
108,305

Total assets
$
431,783,102


$
486,266,642

 
 
 
 
LIABILITIES
 

 
 

Notes payable (net of debt issuance costs of $3,403,895 and $5,274,164, respectively)
$
204,463,112

 
$
251,731,729

Accounts payable and accrued expenses
3,065,996

 
11,956,755

Interest and fees payable
801,805

 
2,904,748

Management and incentive fees payable (see Note 6)
2,008,234

 
2,231,175

Administrator expenses payable (see Note 6)
551,522

 
861,785

Deferred revenue
77,990

 
103,583

Due to affiliate
212,080

 
44,337

Total liabilities
$
211,180,739


$
269,834,112

 
 
 
 
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
673,532,717

 
673,532,717

Total distributable earnings/(loss)
(452,984,828
)
 
(457,154,661
)
Total net assets
220,602,363

 
216,432,530

Total liabilities and net assets
$
431,783,102


$
486,266,642

 
 
 
 
NET ASSET VALUE PER SHARE
$
4.05

 
$
3.97


See accompanying notes to consolidated financial statements.

F-1



Medley Capital Corporation

Consolidated Statements of Operations
 
For the three months ended December 31
 
2019
 
2018
 
(unaudited)
 
(unaudited)
INVESTMENT INCOME
 
 
 
Interest from investments
 

 
 

Non-controlled/non-affiliated investments:
 

 
 

Cash
$
3,217,709

 
$
8,077,603

Payment-in-kind
199,012

 
572,543

Affiliated investments:
 

 
 

Cash
209,248

 
751,751

Payment-in-kind
947,473

 
971,790

Controlled investments:
 

 
 

Cash
83,208

 
77,832

Payment-in-kind
495,382

 
1,028,332

Total interest income
5,152,032


11,479,851

Dividend income
1,837,500

 
2,100,000

Interest from cash and cash equivalents
218,138

 
161,314

Fee income (see Note 9)
283,540

 
460,677

Total investment income
7,491,210


14,201,842

 
 
 
 
EXPENSES
 

 
 

Base management fees (see Note 6)
2,008,234

 
3,185,144

Incentive fees (see Note 6)

 

Interest and financing expenses
5,143,929

 
6,009,116

Professional fees, net (see Note 8)
(4,416,075
)
 
1,200,577

General and administrative
516,842

 
604,149

Administrator expenses (see Note 6)
551,522

 
1,032,127

Directors fees
316,000

 
292,225

Insurance
297,998

 
119,386

Expenses before management and incentive fee waivers
4,418,450


12,442,724

Management fee waiver (see Note 6)

 

Incentive fee waiver (see Note 6)

 

Total expenses net of management and incentive fee waivers
4,418,450


12,442,724

NET INVESTMENT INCOME/(LOSS)
3,072,760

 
1,759,118

 
 
 
 
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
 

 
 

Net realized gain/(loss) from investments
 
 
 
Non-controlled/non-affiliated investments
(57,799
)
 
(5,183,910
)
Affiliated investments

 

Controlled investments
(1,686,837
)
 
(51,538,556
)
Net realized gain/(loss) from investments
(1,744,636
)
 
(56,722,466
)
Net unrealized appreciation/(depreciation) on investments
 
 
 
Non-controlled/non-affiliated investments
3,747,374

 
812,181

Affiliated investments
9,440,599

 
(2,394,593
)
Controlled investments
(9,457,114
)
 
46,591,309

Net unrealized appreciation/(depreciation) on investments
3,730,859

 
45,008,897

Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments

 

Loss on extinguishment of debt (see Note 5)
(889,150
)
 
(122,971
)
Net realized and unrealized gain/(loss) on investments
1,097,073

 
(11,836,540
)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$
4,169,833

 
$
(10,077,422
)
 
 
 
 
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE
$
0.08

 
$
(0.18
)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE
$
0.06

 
$
0.03

WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)
54,474,211

 
54,474,211

DIVIDENDS DECLARED PER COMMON SHARE
$

 
$
0.10

 
See accompanying notes to consolidated financial statements.

F-2



Medley Capital Corporation

Consolidated Statements of Changes in Net Assets
(unaudited)
 
Common Stock
 
Total Distributable Earnings/(Loss)
 
Total Net Assets
 
Shares
 
Par Amount
 
Capital in Excess of Par Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2018
54,474,211

 
$
54,474

 
$
698,586,770

 
$
(377,462,517
)
 
$
321,178,727

 
 
 
 
 
 
 
 
 
 
OPERATIONS
 
 
 
 
 
 
 
 
 
Net investment income/(loss)

 

 

 
1,759,118

 
1,759,118

Net realized gain/(loss) from investments

 

 

 
(56,722,466
)
 
(56,722,466
)
Net unrealized appreciation/(depreciation) on investments

 

 

 
45,008,897

 
45,008,897

Net loss on extinguishment of debt

 

 

 
(122,971
)
 
(122,971
)
SHAREHOLDER DISTRIBUTIONS
 
 
 
 
 
 
 
 
 
Distributions from earnings

 

 

 
(5,447,421
)
 
(5,447,421
)
Total increase/(decrease) in net assets

 

 

 
(15,524,843
)
 
(15,524,843
)
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
54,474,211

 
$
54,474

 
$
698,586,770

 
$
(392,987,360
)
 
$
305,653,884

 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2019
54,474,211

 
$
54,474

 
$
673,532,717

 
$
(457,154,661
)
 
$
216,432,530

 
 
 
 
 
 
 
 
 
 
OPERATIONS
 
 
 
 
 
 
 
 
 
Net investment income/(loss)

 

 

 
3,072,760

 
3,072,760

Net realized gain/(loss) from investments

 

 

 
(1,744,636
)
 
(1,744,636
)
Net unrealized appreciation/(depreciation) on investments

 

 

 
3,730,859

 
3,730,859

Net loss on extinguishment of debt

 

 

 
(889,150
)
 
(889,150
)
Total increase/(decrease) in net assets

 

 

 
4,169,833

 
4,169,833

 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2019
54,474,211

 
$
54,474

 
$
673,532,717

 
$
(452,984,828
)
 
$
220,602,363

 
See accompanying notes to consolidated financial statements.

F-3



Medley Capital Corporation

Consolidated Statements of Cash Flows
 
For the three months ended December 31
 
2019
 
2018
 
(unaudited)
 
(unaudited)
Cash flows from operating activities
 

 
 

NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$
4,169,833

 
$
(10,077,422
)
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
(564,730
)
 
(3,620,889
)
Net amortization of premium/(discount) on investments
(31,158
)
 
(194,707
)
Amortization of debt issuance costs
1,249,907

 
686,641

Net realized (gain)/loss from investments
1,744,636

 
56,722,466

Net deferred income taxes

 

Net unrealized (appreciation)/depreciation on investments
(3,730,859
)
 
(45,008,897
)
Proceeds from sale and settlements of investments
64,999,855

 
43,796,686

Purchases, originations and participations
(7,532,846
)
 
(39,143,387
)
Loss on extinguishment of debt
889,150

 
122,971

(Increase)/decrease in operating assets:
 
 
 
Other assets
(3,163,613
)
 
1,447,501

Interest receivable
371,543

 
218,127

Receivable for dispositions and investments sold
(212,517
)
 
(129,321
)
Fees receivable
56,543

 
77,939

Increase/(decrease) in operating liabilities:
 
 
 
Accounts payable and accrued expenses
(8,890,759
)
 
1,366,167

Interest and fees payable
(2,102,943
)
 
(162,530
)
Management and incentive fees payable, net
(222,941
)
 
(818,791
)
Administrator expenses payable
(310,263
)
 
223,581

Deferred revenue
(25,593
)
 
(41,443
)
Due to affiliate
167,743

 
36,196

NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES
46,860,988

 
5,500,888

 
 
 
 
Cash flows from financing activities
 
 
 
Borrowings on debt

 

Paydowns on debt
(49,407,674
)
 
(12,999,337
)
Debt issuance costs paid

 
(14,362
)
Payments of cash dividends

 
(5,447,421
)
Offering costs paid

 
(10,265
)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES
(49,407,674
)
 
(18,471,385
)
 
 
 
 
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
(2,546,686
)
 
(12,970,497
)
CASH, RESTRICTED CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
84,283,903

 
75,665,981

CASH, RESTRICTED CASH AND CASH EQUIVALENTS, END OF PERIOD
$
81,737,217

 
$
62,695,484

 
 
 
 
Supplemental Information:
 

 
 

Interest paid during the year
$
5,996,965

 
$
3,956,308

Supplemental non-cash information:
 
 
 
Payment-in-kind interest income
$
1,641,867

 
$
2,572,665

Net amortization of premium/(discount) on investments
$
31,158

 
$
194,707

Amortization of debt issuance costs
$
(1,249,907
)
 
$
(686,641
)
Reconciliation to the Consolidated Statement of Assets and Liabilities
December 31, 2019
 
September 30, 2019
 
(unaudited)
 
 
Cash and cash equivalents
$
81,737,217

 
$
68,245,213

Restricted cash

 
16,038,690

Total cash and cash equivalents and restricted cash
$
81,737,217

 
$
84,283,903


See accompanying notes to consolidated financial statements.

F-4



Medley Capital Corporation

Consolidated Schedule of Investments

December 31, 2019
(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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alpine SG, LLC(7)
 
High Tech Industries
 
Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)(13)(20)
 
11/16/2022
 
$
5,061,750

 
$
5,061,750

 
$
5,058,713

 
2.3
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)(13)(20)
 
11/16/2022
 
2,444,350

 
2,444,350

 
2,442,883

 
1.1
%
 
 
 
 
Revolving Credit Facility (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)(13)(15)
 
11/16/2022
 

 

 
(600
)
 
0.0
%
 
 
 
 
 
 
 
 
7,506,100

 
7,506,100

 
7,500,996

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Dental Partners, Inc.
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(13)
 
9/25/2023
 
4,387,500

 
4,387,500

 
4,315,545

 
2.0
%
 
 
 
 
 
 
 
 
4,387,500

 
4,387,500

 
4,315,545

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Autosplice, Inc.
 
High Tech Industries
 
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(13)
 
6/17/2020
 
13,150,795

 
13,150,795

 
13,124,494

 
6.0
%
 
 
 
 
 
 
 
 
13,150,795

 
13,150,795

 
13,124,494

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Avantor, Inc.(10)
 
Wholesale
 
Equity - 942,160 Common Units(16)
 
 
 

 
16,487,800

 
17,100,204

 
7.8
%
 
 
 
 
 
 
 
 

 
16,487,800

 
17,100,204

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Be Green Packaging, LLC
 
Containers, Packaging & Glass
 
Equity - 417 Common Units
 
 
 

 
416,250

 

 
0.0
%
 
 
 
 
 
 
 
 

 
416,250

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Black Angus Steakhouses, LLC(7)
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(13)(21)
 
4/24/2020
 
7,290,179

 
7,290,179

 
7,286,533

 
3.3
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(13)
 
4/24/2020
 

 

 
(446
)
 
0.0
%
 
 
 
 
Revolving Credit Facility (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(13)(15)
 
4/24/2020
 
892,857

 
892,857

 
893,482

 
0.4
%
 
 
 
 
 
 
 
 
8,183,036

 
8,183,036

 
8,179,569

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capstone Nutrition Development, LLC
 
Healthcare & Pharmaceuticals
 
Equity - 13,833.1916 Common Units
 
 
 

 
1,483,319

 
1,483,319

 
0.7
%
 
 
 
 
 
 
 
 

 
1,483,319

 
1,483,319

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CPI International, Inc.
 
Aerospace & Defense
 
Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(12)
 
7/28/2025
 
3,010,025

 
2,998,515

 
2,880,594

 
1.3
%
 
 
 
 
 
 
 
 
3,010,025

 
2,998,515

 
2,880,594

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crow Precision Components, LLC
 
Aerospace & Defense
 
Equity - 350 Common Units
 
 
 

 
700,000

 
666,998

 
0.3
%
 
 
 
 
 
 
 
 

 
700,000

 
666,998

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CT Technologies Intermediate Holdings, Inc.(11)
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(12)
 
12/1/2022
 
7,500,000

 
7,500,000

 
6,635,250

 
3.0
%
 
 
 
 
 
 
 
 
7,500,000

 
7,500,000

 
6,635,250

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

F-5



Company(1)
 
Industry
 
Type of Investment(6)
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of
Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DataOnline Corp.(7)
 
High Tech Industries
 
Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)(13)
 
11/13/2025
 
5,000,000

 
5,000,000

 
5,000,000

 
2.3
%
 
 
 
 
Revolving Credit Facility (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)(13)(15)
 
11/13/2025
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
5,000,000

 
5,000,000

 
5,000,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dermatologists of Southwestern Ohio, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(12)(21)
 
4/20/2022
 
1,062,742

 
1,062,742

 
1,050,733

 
0.5
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(12)(21)
 
4/20/2022
 
403,223

 
403,223

 
398,667

 
0.2
%
 
 
 
 
 
 
 
 
1,465,965

 
1,465,965

 
1,449,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dream Finders Homes, LLC
 
Construction & Building
 
Senior Secured First Lien Term Loan B (10.00% Cash)
 
4/1/2020
 
1,465,708

 
1,465,708

 
1,465,708

 
0.7
%
 
 
 
 
Preferred Equity (8.00% PIK)
 
 
 
4,269,878

 
4,269,878

 
3,539,729

 
1.6
%
 
 
 
 
 
 
 
 
5,735,586

 
5,735,586

 
5,005,437

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Footprint Acquisition, LLC
 
Services:  Business
 
Preferred Equity (8.75% PIK)
 
 
 
3,716,678

 
3,716,678

 
3,716,677

 
1.7
%
 
 
 
 
Equity - 150 Common Units
 
 
 

 

 
3,347,966

 
1.5
%
 
 
 
 
 
 
 
 
3,716,678

 
3,716,678

 
7,064,643

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Accessories Group, LLC(11)
 
Consumer goods:  Non-durable
 
Equity - 3.8% Membership Interest
 
 
 

 
151,337

 
151,339

 
0.1
%
 
 
 
 
 
 
 
 

 
151,337

 
151,339

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Imagine Group, LLC
 
Media: Advertising, Printing & Publishing
 
Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)(9)(12)
 
6/21/2023
 
3,000,000

 
2,887,510

 
570,000

 
0.3
%
 
 
 
 
 
 
 
 
3,000,000

 
2,887,510

 
570,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impact Group, LLC
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(13)(21)
 
6/27/2023
 
3,245,958

 
3,245,958

 
3,056,719

 
1.4
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(13)(21)
 
6/27/2023
 
9,405,021

 
9,405,021

 
8,856,709

 
4.0
%
 
 
 
 
 
 
 
 
12,650,979

 
12,650,979

 
11,913,428

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
InterFlex Acquisition Company, LLC
 
Containers, Packaging & Glass
 
Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(12)(21)
 
8/18/2022
 
13,071,675

 
13,071,675

 
12,458,613

 
5.6
%
 
 
 
 
 
 
 
 
13,071,675

 
13,071,675

 
12,458,613

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
L & S Plumbing Partnership, Ltd.
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 7.50% Cash, 1.00% LIBOR Floor)(13)(20)
 
2/15/2022
 
4,521,535

 
4,521,535

 
4,547,760

 
2.1
%
 
 
 
 
 
 
 
 
4,521,535

 
4,521,535

 
4,547,760

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lighting Science Group Corporation
 
Containers, Packaging & Glass
 
Warrants - 0.56% of Outstanding Equity(17)
 
2/19/2024
 

 
955,680

 

 
0.0
%
 
 
 
 
 
 
 
 

 
955,680

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manna Pro Products, LLC
 
Consumer goods:  Non-durable
 
Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(12)
 
12/8/2023
 
5,384,885

 
5,384,885

 
5,175,952

 
2.3
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(12)
 
12/8/2023
 
1,093,461

 
1,093,461

 
1,051,035

 
0.5
%
 
 
 
 
 
 
 
 
6,478,346

 
6,478,346

 
6,226,987

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Point.360
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 6.00% PIK)(9)(14)
 
7/8/2020
 
2,616,924

 
2,103,712

 
602,677

 
0.3
%
 
 
 
 
 
 
 
 
2,616,924

 
2,103,712

 
602,677

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

F-6



Company(1)
 
Industry
 
Type of Investment(6)
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of
Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RateGain Technologies, Inc.
 
Hotel, Gaming & Leisure
 
Unsecured Debt(18)(21)
 
7/31/2020
 
704,106

 
704,106

 
704,106

 
0.3
%
 
 
 
 
Unsecured Debt(18)(21)
 
7/31/2021
 
761,905

 
761,905

 
761,905

 
0.3
%
 
 
 
 
 
 
 
 
1,466,011

 
1,466,011

 
1,466,011

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redwood Services Group, LLC(7)
 
Services:  Business
 
Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(13)(15)
 
6/6/2023
 
700,000

 
700,000

 
699,125

 
0.3
%
 
 
 
 
 
 
 
 
700,000

 
700,000

 
699,125

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sendero Drilling Company, LLC
 
Energy:  Oil & Gas
 
Unsecured Debt (8.00% Cash)
 
8/31/2021
 
743,750

 
743,750

 
743,750

 
0.3
%
 
 
 
 
 
 
 
 
743,750

 
743,750

 
743,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seotowncenter, Inc.
 
Services:  Business
 
Equity - 3,434,169.6 Common Units
 
 
 

 
566,475

 
1,236,301

 
0.6
%
 
 
 
 
 
 
 
 

 
566,475

 
1,236,301

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SFP Holding, Inc.
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)(13)(21)
 
9/1/2022
 
4,810,727

 
4,810,727

 
4,810,727

 
2.2
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)(13)(21)
 
9/1/2022
 
1,866,556

 
1,866,556

 
1,866,556

 
0.8
%
 
 
 
 
Equity - 94,393.87 Common Units in CI (Summit) Investment Holdings LLC(21)
 
 
 

 
985,673

 
849,545

 
0.4
%
 
 
 
 
 
 
 
 
6,677,283

 
7,662,956

 
7,526,828

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ship Supply Acquisition Corporation
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(9)(13)(21)
 
7/31/2020
 
7,410,524

 
7,216,582

 

 
0.0
%
 
 
 
 
 
 
 
 
7,410,524

 
7,216,582

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SMART Financial Operations, LLC
 
Retail
 
Equity - 700,000 Class A Preferred Units
 
 
 

 
700,000

 
532,000

 
0.2
%
 
 
 
 
 
 
 
 

 
700,000

 
532,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stancor, Inc.
 
Services:  Business
 
Equity - 263,814.43 Class A Units
 
 
 

 
263,815

 
274,367

 
0.1
%
 
 
 
 
 
 
 
 

 
263,815

 
274,367

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Starfish Holdco, LLC
 
High Tech Industries
 
Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(12)(20)
 
8/18/2025
 
2,000,000

 
1,976,458

 
1,931,000

 
0.9
%
 
 
 
 
 
 
 
 
2,000,000

 
1,976,458

 
1,931,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Velocity Pooling Vehicle, LLC
 
Automotive
 
Senior Secured First Lien Term Loan (LIBOR + 11.00% PIK, 1.00% LIBOR Floor)(13)
 
4/28/2023
 
923,991

 
865,582

 
820,134

 
0.4
%
 
 
 
 
Equity - 5,441 Class A Units
 
 
 

 
302,464

 
20,893

 
0.0
%
 
 
 
 
Warrants - 0.65% of Outstanding Equity
 
3/30/2028
 

 
361,668

 
24,983

 
0.0
%
 
 
 
 
 
 
 
 
923,991

 
1,529,714

 
866,010

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Walker Edison Furniture Company LLC
 
Consumer goods:  Durable
 
Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(13)(21)
 
9/26/2024
 
3,588,895

 
3,588,895

 
3,624,784

 
1.6
%
 
 
 
 
Equity - 1,500 Common Units
 
 
 

 
1,500,000

 
3,083,408

 
1.4
%
 
 
 
 
 
 
 
 
3,588,895

 
5,088,895

 
6,708,192

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Watermill-QMC Midco, Inc.
 
Automotive
 
Equity - 1.3% Partnership Interest(8)
 
 
 

 
518,283

 
30,890

 
0.0
%
 
 
 
 
 
 
 
 

 
518,283

 
30,890

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subtotal Non-Controlled/Non-Affiliated Investments
 
 
 
$
125,505,598

 
$
149,985,257

 
$
138,891,727

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

F-7



Company(1)
 
Industry
 
Type of Investment(6)
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of
Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1888 Industrial Services, LLC(7)
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan A (LIBOR + 5.00% PIK, 1.00% LIBOR Floor)(13)
 
9/30/2021
 
$
9,473,068

 
$
9,473,068

 
$
9,473,068

 
4.3
%
 
 
 
 
Senior Secured First Lien Term Loan B (LIBOR + 8.00% PIK, 1.00% LIBOR Floor)(9)(13)
 
9/30/2021
 
24,155,620

 
19,468,870

 
6,038,905

 
2.7
%
 
 
 
 
Senior Secured First Lien Term Loan C (LIBOR + 5.00% PIK, 1.00% LIBOR Floor)(13)
 
6/30/2021
 
1,191,257

 
1,191,257

 
1,191,257

 
0.5
%
 
 
 
 
Senior Secured First Lien Term Loan D (LIBOR + 5.00% PIK, 1.00% LIBOR Floor)(13)
 
9/18/2020
 
228,531

 
228,531

 
228,531

 
0.1
%
 
 
 
 
Senior Secured First Lien Term Loan E (LIBOR + 5.00% PIK, 1.00% LIBOR Floor)(13)
 
9/18/2020
 
823,714

 
823,714

 
823,714

 
0.4
%
 
 
 
 
Revolving Credit Facility (LIBOR + 5.00% PIK, 1.00% LIBOR Floor)(13)(15)
 
9/30/2021
 
3,380,852

 
3,380,852

 
3,380,852

 
1.5
%
 
 
 
 
Equity - 21,562.16 Class A Units
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
39,253,042

 
34,566,292

 
21,136,327

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Access Media Holdings, LLC(7)
 
Media:  Broadcasting & Subscription
 
Senior Secured First Lien Term Loan (10.00% PIK)(9)
 
7/22/2020
 
10,292,195

 
8,446,385

 
2,573,049

 
1.2
%
 
 
 
 
Preferred Equity Series A
 
 
 
1,600,000

 
1,600,000

 

 
0.0
%
 
 
 
 
Preferred Equity Series AA
 
 
 
800,000

 
800,000

 

 
0.0
%
 
 
 
 
Preferred Equity Series AAA
 
 
 
971,200

 
971,200

 
(100,800
)
 
0.0
%
 
 
 
 
Equity - 16 Common Units
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
13,663,395

 
11,817,585

 
2,472,249

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Caddo Investors Holdings 1 LLC(10)
 
Forest Products & Paper
 
Equity - 6.15% Membership Interest(19)
 
 
 

 
2,526,373

 
2,897,112

 
1.3
%
 
 
 
 
 
 
 
 

 
2,526,373

 
2,897,112

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dynamic Energy Services International LLC(7)
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan (LIBOR + 13.50% PIK)(9)(14)
 
12/31/2021
 
11,570,965

 
7,824,974

 
1,315,619

 
0.6
%
 
 
 
 
Equity - 12,350,000 Class A Units
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
11,570,965

 
7,824,974

 
1,315,619

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
JFL-NGS Partners, LLC
 
Construction & Building
 
Preferred Equity - A-2 Preferred (3.00% PIK)
 
 
 
20,150,684

 
20,150,684

 
20,150,684

 
9.1
%
 
 
 
 
Preferred Equity - A-1 Preferred (3.00% PIK)
 
 
 
2,607,661

 
2,607,661

 
2,607,661

 
1.2
%