PhenixFIN Corp - FORM 10-Q - February 10, 2020

Attached files

file	filename
EX-32.1 - EXHIBIT 32.1 - PhenixFIN Corp	exhibit321123119.htm
EX-31.2 - EXHIBIT 31.2 - PhenixFIN Corp	exhibit312123119.htm
EX-31.1 - EXHIBIT 31.1 - PhenixFIN Corp	exhibit311123119.htm
EX-21.1 - EXHIBIT 21.1 - PhenixFIN Corp	exhibit211123119.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

Consolidated Statements of Assets and Liabilities as of December 31, 2019 (unaudited) and September 30, 2019	F-1

Consolidated Statements of Operations for the three months ended December 31, 2019 and 2018 (unaudited)	F-2

Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2019 and 2018 (unaudited)	F-3

Consolidated Statements of Cash Flows for the three months ended December 31, 2019 and 2018 (unaudited)	F-4

Consolidated Schedules of Investments as of December 31, 2019 (unaudited) and September 30, 2019	F-5

Notes to Consolidated Financial Statements (unaudited)	F-17

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

Item 3. Quantitative and Qualitative Disclosures About Market Risk	20

Item 4. Controls and Procedures	21

Part II. Other Information

Item 1. Legal Proceedings	22

Item 1A. Risk Factors	24

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	24

Item 3. Defaults Upon Senior Securities	24

Item 4. Mine Safety Disclosures	24

Item 5. Other Information	24

Item 6. Exhibits	25

SIGNATURES	29

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
	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