Monroe Capital Income Plus Corp - FORM 10-Q - May 15, 2020

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EX-32.1 - EXHIBIT 32.1 - Monroe Capital Income Plus Corptm2014678d1_ex32-1.htm
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EX-31.1 - EXHIBIT 31.1 - Monroe Capital Income Plus Corptm2014678d1_ex31-1.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2020

 

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number: 814-01301

 

MONROE CAPITAL INCOME PLUS CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Maryland 83-0711022
(State or Other Jurisdiction of
Incorporation or Organization)		 (I.R.S. Employer
Identification No.)
   
311 South Wacker Drive, Suite 6400
Chicago, Illinois		 60606
(Address of Principal Executive Office) (Zip Code)

 

(312) 258-8300

(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
None   N/A   N/A

 

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 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   x    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 ¨
       
Non-accelerated filer x Smaller reporting company ¨
       
Emerging growth company x    

 

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 Exchange Act).  Yes   ¨     No   x

 

As of May 14, 2020 the registrant had 8,947,090 shares of common stock, $0.001 par value, outstanding.

 

 

   

 

 

TABLE OF CONTENTS

 

    Page
PART I. FINANCIAL INFORMATION 3
     
Item 1. Consolidated Financial Statements 3
     
  Consolidated Statements of Assets and Liabilities as of March 31, 2020 (unaudited) and December 31, 2019 3
     
  Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2020 and 2019 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 (unaudited) 6
     
  Consolidated Schedules of Investments as of March 31, 2020 (unaudited) and December 31, 2019 7
     
  Notes to Consolidated Financial Statements (unaudited) 14
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 29
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 42
     
Item 4. Controls and Procedures 42
     
PART II. OTHER INFORMATION 43
     
Item 1. Legal Proceedings 43
     
Item 1A. Risk Factors 43
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46
     
Item 3. Defaults Upon Senior Securities 46
     
Item 4. Mine Safety Disclosures 46
     
Item 5. Other Information 46
     
Item 6. Exhibits 47
     
Signatures   48

 

 2 

 

 

Part I. Financial Information

Item 1. Consolidated Financial Statements

 

MONROE CAPITAL INCOME PLUS CORPORATION

 

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

(in thousands, except per share data)

 

   March 31, 2020   December 31, 2019 
   (unaudited)     
ASSETS          
Investments at fair value (amortized cost of $160,088 and $99,931, respectively)  $154,640   $100,807 
Cash and cash equivalents   3,217    2,223 
Restricted cash   2,230    1,841 
Interest receivable   818    414 
Due from affiliates   14    14 
Other assets   76    6 
Total assets   160,995    105,305 
           
LIABILITIES          
Debt:          
Revolving credit facility   72,000    31,200 
Less: Unamortized deferred financing costs   —    (84)
Total debt, less unamortized deferred financing costs   72,000    31,116 
Interest payable   458    297 
Payable for unsettled trades   2,706    2,796 
Management fees payable   237    302 
Incentive fees payable   —    132 
Distributions payable   —    1,387 
Accounts payable and accrued expenses   668    530 
Directors' fees payable   15    — 
Total liabilities   76,084    36,560 
Net assets  $84,911   $68,745 
           
Commitments and contingencies (See Note 9)          
           
ANALYSIS OF NET ASSETS          
Common stock, $0.001 par value, 100,000 shares authorized, 8,947 and 6,875 shares issued and outstanding, respectively  $9   $7 
Capital in excess of par value   89,442    68,718 
Accumulated undistributed (overdistributed) earnings   (4,540)   20 
Total net assets  $84,911   $68,745 
           
Net asset value per share  $9.49   $10.00 

 

See Notes to Consolidated Financial Statements. 

 

 3 

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

(in thousands, except per share data)

 

   Three months ended March 31, 
   2020   2019 
Investment income:          
Interest and dividend income  $2,689   $104 
Total investment income   2,689    104 
           
Operating expenses:          
Interest and other debt financing expenses   545    22 
Base management fees   497    47 
Incentive fees   109    — 
Professional fees   82    60 
Administrative service fees   82    47 
General and administrative expenses   84    44 
Directors' fees   15    15 
Expenses before fee waivers and expense reimbursement   1,414    235 
Base management fee waiver   (260)   (47)
Incentive fee waiver   (241)   — 
Expense reimbursement   —    (166)
Total expenses, net of fee waivers and expense reimbursement   913    22 
Net investment income before incomes taxes   1,776    82 
Income taxes, including excise taxes   12    — 
Net investment income   1,764    82 
           
Net gain (loss):          
Net change in unrealized gain (loss) on investments   (6,324)   126 
Net gain (loss)   (6,324)   126 
           
Net increase (decrease) in net assets resulting from operations  $(4,560)  $208 
           
Per common share data:          
Net investment income per share - basic and diluted  $0.20   $0.10 
Net increase (decrease) in net assets resulting from operations per share - basic and diluted  $(0.51)  $0.25 
Weighted average common shares outstanding - basic and diluted   8,872    848 

 

See Notes to Consolidated Financial Statements.

 

 4 

 

 

MONROE CAPITAL INCOME PLUS CORPORATION
                     
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
                     
(in thousands)
                     
    Common Stock    Capital in    Accumulated
undistributed		      
    

Number

of shares

    Par
value		    

excess

of par value

    (overdistributed)
earnings		    Total
net assets		 
Balances at December 31, 2018   —   $—   $1   $—   $1 
Net investment income   —    —    —    82    82 
Net change in unrealized gain (loss) on investments   —    —    —    126    126 
Issuance of common stock   1,018    1    10,174    —    10,175 
Distributions declared and payable to stockholders   —    —    —    (208)   (208)
Stock issued in connection with dividend reinvestment plan   —    —    —    —    — 
Balances at March 31, 2019   1,018   $1   $10,175   $—   $10,176 
                          
Balances at December 31, 2019   6,875   $7   $68,718   $20   $68,745 
Net investment income   —    —    —    1,764    1,764 
Net change in unrealized gain (loss) on investments   —    —    —    (6,324)   (6,324)
Issuance of common stock   2,036    2    20,367    —    20,369 
Distributions declared and payable to stockholders   —    —    —     —    — 
Stock issued in connection with dividend reinvestment plan   36    —    357    —    357 
Balances at March 31, 2020   8,947   $9   $89,442   $(4,540)  $84,911 

 

See Notes to Consolidated Financial Statements.

 

 5 

 

MONROE CAPITAL INCOME PLUS CORPORATION
         
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
         
(in thousands)
         
   Three months ended March 31, 
   2020   2019 
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $(4,560)  $208 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:          
Net change in unrealized (gain) loss on investments   6,324    (126)
Payment-in-kind interest income   (29)   — 
Net accretion of discounts and amortization of premiums   (125)   (3)
Purchases of investments   (62,374)   (8,923)
Proceeds from principal payments and sale of investments   2,371    5 
Amortization of deferred financing costs   88    18 
Changes in operating assets and liabilities:          
Interest receivable   (404)   (55)
Due from affiliates   —    (166)
Other assets   (70)   — 
Interest payable   161    5 
Payable for unsettled trades   (90)   — 
Management fees payable   (65)   — 
Due to broker   —    10,000 
Incentive fees payable   (132)   — 
Accounts payable and accrued expenses   138    159 
Directors' fees payable   15    15 
Net cash provided by (used in) operating activities   (58,752)   1,137 
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   60,400    — 
Repayments of revolving credit facility   (19,600)   — 
Payments of deferred financing costs   (4)   (320)
Proceeds from issuance of common shares   20,369    10,175 
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $357 and $0, respectively   (1,030)   — 
Net cash provided by (used in) financing activities   60,135    9,855 
           
Net increase (decrease) in Cash and cash equivalents and Restricted cash   1,383    10,992 
Cash, Cash equivalents and Restricted cash, beginning of period   4,064    1 
Cash, Cash equivalents and Restricted cash, end of period  $5,447   $10,993 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $296   $— 
Cash paid for excise taxes during the period  $25   $— 

 

 

The following tables provide a reconciliation of cash, cash equivalents and restricted cash reported on the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:

 

   March 31,
2020		   December 31,
2019		 
Cash and cash equivalents  $3,217   $2,223 
Restricted cash   2,230    1,841 
Total cash, cash equivalents and restricted cash shown on the Consolidated Statements of Cash Flows  $5,447   $4,064 

 

   March 31,
2019		   December 31,
2018		 
Cash and cash equivalents  $10,962   $1 
Restricted cash   31    — 
Total cash, cash equivalents and restricted cash shown on the Consolidated Statements of Cash Flows  $10,993   $1 

 

See Notes to Consolidated Financial Statements. 

 6 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2020

(in thousands, except for shares and units)

 

Portfolio Company (a) (b)  Spread Above
Index (c)		  Interest Rate   Acquisition
Date (d)		  Maturity  Principal   Amortized
Cost		   Fair
Value (e)		   % of
Net Assets (f)		 
Investments:                                 
Senior Secured Loans                                 
Aerospace & Defense                                 
API Holdings III Corp. (g)  L+ 4.25%  5.24%  5/2/2019  5/8/2026   1,687   $1,680   $1,392    1.6%
SI Holdings, Inc. (Integrated Polymer Solutions) (g)   L+ 6.00%  7.45%  12/24/2019  7/25/2025   1,039    1,019    980    1.2%
SI Holdings, Inc. (Integrated Polymer Solutions) (g)   L+ 6.00%  7.45%  7/25/2019  7/25/2025   1,990    1,953    1,877    2.2%
SI Holdings, Inc. (Integrated Polymer Solutions) (Revolver)  L+ 6.00%  7.45 %  7/25/2019  7/25/2024   316    316    316    0.4%
                 5,032    4,968    4,565    5.4%
Automotive                                 
Rough Country, LLC (g)   L+ 3.50%  4.57%  4/17/2019  5/25/2023   1,346    1,342    1,317    1.5%
Truck-Lite Co., LLC (g)  L+ 6.25%  7.32%  3/11/2020  12/14/2026   3,478    3,444    3,444    4.1%
Truck-Lite Co., LLC (Delayed Draw) (h) (i)  L+ 6.25%  7.32%  3/11/2020  12/14/2026   513    —    —    0.0%
Wheel Pros, LLC (g)   L+ 4.75%  5.82%  5/13/2019  4/4/2025   2,475    2,452    1,794    2.1%
                 7,812    7,238    6,555    7.7%
Banking, Finance, Insurance & Real Estate                                 
777 SPV I, LLC (Delayed Draw) (i) (j)  L+ 8.50%  10.25%  4/15/2019  4/14/2023   1,735    1,717    1,739    2.0%
Avison Young (USA), Inc. (g) (j) (k)  L+ 5.00%  6.45%  4/26/2019  1/30/2026   1,980    1,962    1,630    1.9%
InsideRE Holdings, LLC and InsideRE, LLC (g)  L+ 6.50%  7.95%  9/9/2019  9/9/2024   2,985    2,931    2,994    3.5%
InsideRE Holdings, LLC and InsideRE, LLC (Revolver)  L+ 6.50%  7.50%  9/9/2019  9/9/2024   429    429    429    0.5%
Kudu Investment Holdings, LLC (g) (j)  L+ 6.25%  7.70%  12/23/2019  12/23/2025   2,750    2,704    2,686    3.2%
Kudu Investment Holdings, LLC (Delayed Draw) (h) (i) (j)L+ 6.25%  7.68%  12/23/2019  12/23/2025   1,833    579    565    0.7%
Kudu Investment Holdings, LLC (Revolver) (h) (j)  L+ 6.25%  7.70%  12/23/2019  12/23/2025   241    —    —    0.0%
TCP-NG (U.S.), LLC  (g) (j)  L+ 7.25%  8.75%  8/23/2019  8/22/2024   1,663    1,638    1,615    1.9%
TCP-NG (U.S.), LLC (Revolver) (h) (j)   L+ 7.25%  8.75%  8/23/2019  8/22/2024   105    —    —    0.0%
Team RMS, LLC (g)   L+ 6.00%  7.00%  9/20/2019  9/20/2024   7,960    7,835    7,695    9.1%
Team RMS, LLC (Delayed Draw) (h) (i)   L+ 6.00%  7.00%  9/20/2019  9/20/2024   367    73    71    0.1%
Team RMS, LLC (Revolver) (h)  L+ 6.00%  7.00%  9/20/2019  9/20/2024   643    286    277    0.3%
                 22,691    20,154    19,701    23.2%
Beverage, Food & Tobacco                                 
Huff Hispanic Food Holdings, LLC (g)  L+ 5.50%  6.50%  10/18/2019  10/18/2024   5,970    5,860    5,889    6.9%
Huff Hispanic Food Holdings, LLC (Delayed Draw) (h) (i)L+ 5.50%  6.50%  10/18/2019  10/18/2024   333    —    —    0.0%
Huff Hispanic Food Holdings, LLC (Revolver) (h)  L+ 5.50%  6.50%  10/18/2019  10/18/2024   1,286    729    719    0.9%
LX/JT Intermediate Holdings, Inc. (g)  L+ 6.00%  7.50%  3/11/2020  3/11/2025   6,000    5,881    5,880    6.9%
LX/JT Intermediate Holdings, Inc. (Revolver) (h)  L+ 6.00%  7.50%  3/11/2020  3/11/2025   500    —    —    0.0%
                 14,089    12,470    12,488    14.7%
Capital Equipment                                 
MCP Shaw Acquisitionco, LLC (g)  L+ 6.50%  8.11%  2/28/2020  11/28/2025   8,000    7,843    7,832    9.2%
MCP Shaw Acquisitionco, LLC (Revolver)  L+ 6.50%  8.02%  2/28/2020  11/28/2025   1,427    1,427    1,397    1.6%
                 9,427    9,270    9,229    10.8%
Consumer Goods: Durable                                 
Franchise Group Intermediate Holdco, LLC (g)  L+ 9.00%  10.50%  2/24/2020  2/14/2025   4,500    4,412    4,334    5.1%
                 4,500    4,412    4,334    5.1%
Consumer Goods: Non-Durable                                 
Quirch Foods Holdings, LLC (g)  L+ 6.00%  6.96%  2/14/2019  12/19/2025   1,234    1,223    1,080    1.3%
                 1,234    1,223    1,080    1.3%
Containers, Packaging & Glass                                 
Polychem Acquisition, LLC (g)  L+ 5.00%  6.08%  4/8/2019  3/17/2025   1,980    1,971    1,980    2.3%
                 1,980    1,971    1,980    2.3%
Energy: Oil & Gas                                 
BJ Services, LLC (g)  L+ 7.00%  8.50%  1/28/2019  1/3/2023   1,900    1,886    1,868    2.2%
BW Gas & Convenience Holdings, LLC (g)  L+ 6.25%  7.18%  11/15/2019  11/18/2024   2,116    2,035    1,778    2.1%
Fieldwood Energy, LLC (g)  L+ 5.25%  7.03%  1/1/2020  4/11/2022   1,000    851    356    0.4%
Par Petroleum, LLC (g)  L+ 6.75%  8.60%  1/27/2020  1/12/2026   1,000    1,007    705    0.8%
                 6,016    5,779    4,707    5.5%
Healthcare & Pharmaceuticals                                 
Apotheco, LLC (g)  L+ 5.50%  6.50%  4/8/2019  4/8/2024   1,737    1,707    1,617    1.9%
Apotheco, LLC (Delayed Draw) (h) (i)  L+ 5.50%  6.50%  4/8/2019  4/8/2024   824    —    —    0.0%
Apotheco, LLC (Revolver)  L+ 5.50%  6.50%  4/8/2019  4/8/2024   455    455    423    0.5%
Ascent Midco, LLC (g)  L+ 5.75%  6.75%  2/5/2020  2/5/2025   2,494    2,445    2,399    2.8%
Ascent Midco, LLC (h)  L+ 5.75%  6.75%  2/5/2020  2/5/2025   1,014    —    —    0.0%
Ascent Midco, LLC (Revolver) (h)  L+ 5.75%  6.75%  2/5/2020  2/5/2025   403    262    252    0.3%
ERC Finance, LLC (g)  L+ 4.50%  5.57%  4/23/2019  9/20/2024   1,980    1,950    1,614    1.9%
nThrive, Inc. (g)  L+ 4.50%  5.50%  5/3/2019  10/20/2022   2,474    2,428    2,097    2.5%
QF Holdings, Inc. (g)  L+ 7.00%  8.00%  9/19/2019  9/19/2024   4,550    4,468    4,402    5.2%
QF Holdings, Inc. (Delayed Draw) (h) (i)   L+ 7.00%  8.00%  9/19/2019  9/19/2024   910    —    —    0.0%
QF Holdings, Inc. (Revolver) (h)  L+ 7.00%  8.20%  9/19/2019  9/19/2024   546    364    352    0.4%
WebPT, Inc. (g)   L+ 6.75%  8.36%  8/28/2019  8/28/2024   5,000    4,909    4,912    5.8%
WebPT, Inc. (Delayed Draw) (h) (i)   L+ 6.75%  8.36%  8/28/2019  8/28/2024   625    —    —    0.0%
WebPT, Inc. (Revolver)  L+ 6.75%  7.95%  8/28/2019  8/28/2024   521    521    521    0.6%
                 23,533    19,509    18,589    21.9%

 

 7 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2020

(in thousands, except for shares and units) 

 

Portfolio Company (a) (b)  Spread Above
Index (c)		  Interest Rate   Acquisition
Date (d)		  Maturity  Principal   Amortized
Cost		   Fair
Value (e)		   % of
Net Assets (f)		 
High Tech Industries                                 
Acquia, Inc. (g)  L+ 7.00%  8.58%  11/1/2019  10/31/2025   5,429   $5,327   $5,433    6.4%
Acquia, Inc. (Revolver) (h)  L+ 7.00%  8.58%  11/1/2019  10/31/2025   588    —    —    0.0%
Instructure, Inc. (g)  L+ 7.00%  8.21%  3/24/2020  3/24/2026   9,000    8,888    8,888    10.5%
Instructure, Inc. (Revolver) (h)  L+ 7.00%  8.21%  3/24/2020  3/24/2026   697    —    —    0.0%
Mindbody, Inc. (g)  L+ 7.00%  8.00%  2/15/2019  2/14/2025   1,810    1,778    1,721    2.0%
Mindbody, Inc. (Revolver)  L+ 7.00%  8.07%  2/15/2019  2/14/2025   190    190    181    0.2%
Recorded Future, Inc. (g)  L+ 6.25%  7.25%  7/3/2019  7/3/2025   3,667    3,599    3,673    4.3%
Recorded Future, Inc (Delayed Draw) (h) (i)   L+ 6.25%  7.25%  7/3/2019  7/3/2025   293    —    —    0.0%
Recorded Future, Inc. (Revolver) (h)  L+ 6.25%  7.25%  7/3/2019  7/3/2025   440    293    293    0.4%
Transact Holdings, Inc. (g) (l)  L+ 4.75%  5.74%  4/18/2019  4/30/2026   750    739    581    0.7%
                 22,864    20,814    20,770    24.5%
Media: Advertising, Printing & Publishing                                 
Digital Room Holdings, Inc. (g)  L+ 5.00%  6.07%  5/9/2019  5/21/2026   2,198    2,169    1,917    2.3%
NTM Acquisition Corp. (g)  L+ 6.25%  7.70%  4/18/2019  6/7/2022   4,913    4,893    4,889    5.7%
XanEdu Publishing, Inc. (g)  L+ 6.50%  7.50%  1/28/2020  1/28/2025   2,500    2,452    2,480    2.9%
XanEdu Publishing, Inc. (Revolver) (h)  L+ 6.50%  7.50%  1/28/2020  1/28/2025   651    649    644    0.8%
                 10,262    10,163    9,930    11.7%
Media: Broadcasting & Subscription                                 
Vice Group Holding, Inc.  L+ 12.00% 

5.92% Cash/

8.00% PIK

   11/4/2019  11/2/2022   184    184    181    0.2%
Vice Group Holding, Inc.  L+ 12.00% 

5.92% Cash/

8.00% PIK

   5/2/2019  11/2/2022   957    950    943    1.1%
Vice Group Holding, Inc.  L+ 12.00%  13.77%  5/2/2019  11/2/2022   300    300    296    0.4%
Vice Group Holding, Inc. (Delayed Draw) (h) (i)  L+ 12.00%  13.77%  5/2/2019  11/2/2022   120    —    —    0.0%
                 1,561    1,434    1,420    1.7%
Media: Diversified & Production                                 
Crownpeak Technology, Inc. (g)  L+ 6.25%  7.83%  2/28/2019  2/28/2024   1,000    984    976    1.1%
Crownpeak Technology, Inc.  L+ 6.25%  7.83%  2/28/2019  2/28/2024   15    15    15    0.0%
Crownpeak Technology, Inc. (Revolver) (h)  L+ 6.25%  7.83%  2/28/2019  2/28/2024   42    —    —    0.0%
Picture Heads Midco, LLC (g)  L+ 6.75%  7.75%  8/26/2019  8/31/2023   2,000    1,968    1,874    2.3%
                 3,057    2,967    2,865    3.4%
Metals & Mining                                 
Contura Energy, Inc. (g)  L+ 7.00%  9.00%  1/15/2020  6/14/2024   997    829    672    0.8%
                 997    829    672    0.8%
Services: Business                                 
Arcserve (USA), LLC (g)  L+ 5.50%  7.41%  5/1/2019  5/1/2024   1,417    1,393    1,361    1.6%
Certify, Inc. (g)  L+ 5.75%  6.75%  2/28/2019  2/28/2024   1,000    987    989    1.2%
Certify, Inc. (Delayed Draw) (h) (i)  L+ 5.75%  6.75%  2/28/2019  2/28/2024   136    91    90    0.1%
Certify, Inc. (Revolver) (h)  L+ 5.75%  6.75%  2/28/2019  2/28/2024   46    7    7    0.0%
Evergreen Skills LUX S.A.R.L. (g)  L+ 4.75%  6.53%  1/28/2020  4/28/2021   1,496    1,280    987    1.2%
Governmentjobs.com, Inc. (g)  L+ 6.50%  8.24%  2/5/2020  2/5/2026   7,000    6,864    6,808    8.0%
Governmentjobs.com, Inc. (Revolver) (h)  L+ 6.50%  8.24%  2/5/2020  2/5/2026   933    —    —    0.0%
HS4 Acquistionco, Inc. (g)  L+ 6.75%  8.20%  7/9/2019  7/9/2025   4,000    3,927    3,876    4.6%
HS4 Acquistionco, Inc. (Revolver) (h)  L+ 6.75%  7.75%  7/9/2019  7/9/2025   325    187    181    0.2%
Kaseya Traverse, Inc. (m)  L+ 7.00% 

5.91% Cash/

3.00% PIK

   5/3/2019  5/2/2025   2,698    2,650    2,577    3.0%
Kaseya Traverse, Inc. (Delayed Draw) (h) (i)  L+ 7.00% 

5.91% Cash/

3.00% PIK

   5/3/2019  5/2/2025   301    39    38    0.0%
Kaseya Traverse, Inc. (Delayed Draw) (h) (i)  L+ 7.00%  5.91% Cash/
3.00% PIK

  3/4/2020  3/4/2022   121    —    —    0.0%
Kaseya Traverse, Inc. (Revolver) (h)  L+ 6.50%  7.50%  5/3/2019  5/2/2025   211    209    199    0.2%
                 19,684    17,634    17,113    20.1%
Services: Consumer                                 
Light Wave Dental Management, LLC (g)  L+ 6.00%  8.00%  8/1/2019  1/2/2024   1,234    1,218    1,198    1.4%
Light Wave Dental Management, LLC (g)  L+ 6.00%  8.00%  12/1/2019  1/2/2024   234    231    227    0.3%
Light Wave Dental Management, LLC (g)  L+ 6.00%  8.00%  12/1/2019  1/2/2024   446    440    432    0.5%
Light Wave Dental Management, LLC (g)  L+ 6.00%  8.00%  12/6/2019  1/2/2024   122    122    118    0.1%
Light Wave Dental Management, LLC (g)  L+ 6.00%  8.00%  12/6/2019  1/2/2024   1,300    1,300    1,262    1.5%
Light Wave Dental Management, LLC (g)  L+ 6.00%  8.00%  2/12/2020  1/2/2024   64    63    62    0.1%
Light Wave Dental Management, LLC  L+ 6.00%  8.00%  12/6/2019  1/2/2024   363    358    352    0.4%
Light Wave Dental Management, LLC (Delayed Draw) (h) (i)  L+ 6.00%  8.00%  8/1/2019  1/2/2024   640    245    238    0.3%
Light Wave Dental Management, LLC (Revolver)  L+ 6.00%  8.00%  8/1/2019  1/2/2024   128    128    124    0.1%
QuoteLab, LLC (Delayed Draw) (h) (i)  L+ 4.60%  5.60%  2/28/2020  2/26/2025   47    —    —    0.0%
                 4,578    4,105    4,013    4.7%
Telecommunications                                 
DataOnline Corp. (g)  L+ 5.50%  7.11%  11/13/2019  11/13/2025   6,484    6,348    6,200    7.3%
DataOnline Corp. (Revolver) (h)  L+ 5.50%  6.70%  11/13/2019  11/13/2025   844    633    605    0.7%
                 7,328    6,981    6,805    8.0%
Transportation: Cargo                                 
Pasha Group (g) (l)  L+ 7.50%  8.50%  2/25/2020  1/26/2023   1,961    1,968    1,667    2.0%
                 1,961    1,968    1,667    2.0%
  Total Senior Secured Loans                168,606    153,889    148,483    174.8%

 

 8 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2020

(in thousands, except for shares and units)

 

Portfolio Company (a) (b)  Spread Above
Index (c)		  Interest Rate   Acquisition
Date (d)		  Maturity  Principal   Amortized
Cost		   Fair
Value (e)		   % of
Net Assets (f)		 
  Unitranche Secured Loans (n)                                 
Services: Consumer                                 
QuoteLab, LLC (g)   L+ 4.60%  5.60%  2/26/2019  2/26/2025   997   $982   $983    1.2%
                 997    982    983    1.2%
  Total Unitranche Secured Loans                997    982    983    1.2%
                                  
  Junior Secured Loans                                 
ALTA Enterprises, LLC (g) (j)  L+ 8.00%  9.80%  2/14/2020  8/13/2025   4,000    3,863    3,889    4.6%
                 4,000    3,863    3,889    4.6%
  Total Junior Secured Loans                4,000    3,863    3,889    4.6%
                                  
  Equity Securities (o) (p)                                 
Banking, Finance, Insurance & Real Estate                                 
InsideRE Holdings, LLC and InsideRE, LLC (257,143 Class A common units)  —  —(q)  9/9/2019  —   —    257    265    0.3%
                      257    265    0.3%
Beverage, Food & Tobacco                                 
Huff Hispanic Food Holdings, LLC (171,429 Class A interests)  —  —(q)  10/18/2019  —   —    171    117    0.1%
                      171    117    0.1%
Capital Equipment                                 
MCP Shaw Acquisitionco, LLC (95,125 Class A-2 units)  —  —(q)  2/28/2020  —   —    95    87    0.1%
                      95    87    0.1%
Healthcare & Pharmaceuticals                                 
Ascent Midco, LLC (725,806 Class A units)  —   8.00% PIK    2/5/2020  —   —    726    706    0.8%
                      726    706    0.8%
High Tech Industries                                 
Recorded Future, Inc. (40,040 Class A units) (r)  —  —(q)  7/3/2019  —   —    40    43    0.1%
                      40    43    0.1%
Media: Advertising, Printing & Publishing                                 
XanEdu Publishing, Inc. (65,104 Class A units)  —   8.00% PIK    1/28/2020  —   —    65    67    0.1%
                      65    67    0.1%
Total Equity Securities                     1,354    1,285    1.5%
                                  
TOTAL INVESTMENTS                    $160,088   $154,640    182.1%

 

 9 

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2020

(in thousands, except for shares and units)

 

 

(a) All of the Company's investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of the Company's investments are issued by U.S. portfolio companies unless otherwise noted.
(b) All investments are non-controlled/non-affiliated investments as defined by the 1940 Act. The provisions of the 1940 Act classify investments based on the level of control that the Company maintains in a particular portfolio company.
(c) The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), which resets daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR and the current contractual interest rate in effect at March 31, 2020. Certain investments are subject to a LIBOR interest rate floor, or rate cap.
(d) Except as otherwise noted, all of the Company’s portfolio company investments, which as of March 31, 2020 represented 182.1% of the Company’s net assets or 96.1% of the Company’s total assets, are subject to legal restrictions on sales.
(e) Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs by the Company's board of directors as required by the 1940 Act. (See Note 4 in the accompanying notes to the consolidated financial statements.)
(f) Percentages are based on net assets of $84,911 as of March 31, 2020.
(g) This security was held in MC Income Plus Financing SPV LLC (the “SPV”) as collateral for the secured revolving credit facility (the “Credit Facility”) with KeyBank National Association. (See Note 6 in the accompanying notes to the consolidated financial statements).
(h) All or a portion of this commitment was unfunded at March 31, 2020. As such, interest is earned only on the funded portion of this commitment.
(i) This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.
(j) This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of March 31, 2020, non-qualifying assets totaled 7.5% of the Company’s total assets.
(k) This is an international company.
(l) Investment position or portion thereof unsettled as of March 31, 2020.
(m) A portion of this loan (principal of $2,517) is held in the SPV as collateral for the Credit Facility.

(n) The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan, in which case the “first out” portion of the loan will generally receive priority with respect to payments of principal, interest and any other amounts due thereunder. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and the Company’s unitranche secured loans will expose the Company to the risks associated with second lien and subordinated loans and may limit the Company’s recourse or ability to recover collateral upon a portfolio company’s bankruptcy. Unitranche secured loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche secured loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases the Company, together with its affiliates, is the sole or majority lender of these unitranche secured loans, which can afford the Company additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of underperformance.

(o) Represents less than 5% ownership of the portfolio company's voting securities.
(p) Ownership of certain equity investments may occur through a holding company or partnership.
(q) Represents a non-income producing security.
(r) As of March 31, 2020, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $8.
n/a - not applicable

 

See Notes to Consolidated Financial Statements. 

 10 

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2019

(in thousands, except for shares and units)

 

Portfolio Company (a) (b)  Spread Above
 Index (c)		  Interest
Rate		   Acquisition
Date (d)		  Maturity  Principal   Amortized
Cost		   Fair
Value (e)		   % of
Net Assets (f)		 
Investments:                                 
Senior Secured Loans                                 
Aerospace & Defense                                 
API Holdings III Corp. (g)  L+4.25%  6.05%  5/2/2019  5/8/2026   1,691   $1,684   $1,632    2.4%
SI Holdings, Inc. (Integrated Polymer Solutions) (g)  L+6.00%  7.94%  12/24/2019  7/25/2025   1,041    1,021    1,041    1.5%
SI Holdings, Inc. (Integrated Polymer Solutions) (g)  L+6.00%  7.94%  7/25/2019  7/25/2025   1,995    1,956    1,994    2.9%
SI Holdings, Inc. (Integrated Polymer Solutions) (Revolver) (h)  L+6.00%  7.94%  7/25/2019  7/25/2024   316    79    79    0.1%
                 5,043    4,740    4,746    6.9%
Automotive                                 
Rough Country, LLC (g)  L+3.50%  5.30%  4/17/2019  5/25/2023   1,346    1,342    1,339    1.9%
Wheel Pros, LLC (g)  L+4.75%  6.55%  5/13/2019  4/4/2025   2,481    2,458    2,452    3.6%
                 3,827    3,800    3,791    5.5%
Banking, Finance, Insurance & Real Estate                                 
777 SPV I LLC (Delayed Draw)  (i) (j)  L+8.50%  10.30%  4/15/2019  4/14/2023   1,775    1,756    1,780    2.6%
Avison Young (USA), Inc. (g) (j) (k)  L+5.00%  6.94%  4/26/2019  1/30/2026   1,985    1,966    1,954    2.8%
InsideRE Holdings, LLC and InsideRE, LLC (g)  L+6.50%  8.46%  9/9/2019  9/9/2024   2,993    2,936    3,006    4.4%
InsideRE Holdings, LLC and InsideRE, LLC (Revolver) (h)  L+6.50%  8.46%  9/9/2019  9/9/2024   429    —    —    0.0%
Kudu Investment Holdings, LLC  (j)  L+6.25%  8.18%  12/23/2019  12/23/2025   2,750    2,702    2,702    3.9%
Kudu Investment Holdings, LLC (Delayed Draw) (h) (i) (j)  L+6.25%  8.18%  12/23/2019  12/23/2025   1,833    —    —    0.0%
Kudu Investment Holdings, LLC (Revolver) (h) (j)  L+6.25%  8.18%  12/23/2019  12/23/2025   241    —    —    0.0%
TCP-NG (U.S.), LLC (j)  L+7.25%  9.21%  8/23/2019  8/22/2024   1,706    1,680    1,703    2.5%
TCP-NG (U.S.), LLC (Revolver)  (h) (j)  L+7.25%  9.21%  8/23/2019  8/22/2024   105    —    —    0.0%
Team RMS, LLC (g)  L+6.00%  7.80%  9/20/2019  9/20/2024   7,980    7,849    7,995    11.6%
Team RMS, LLC (Delayed Draw)  (h) (i)  L+6.00%  7.80%  9/20/2019  9/20/2024   367    73    73    0.1%
Team RMS, LLC (Revolver) (h)  L+6.00%  7.80%  9/20/2019  9/20/2024   643    115    115    0.2%
                 22,807    19,077    19,328    28.1%
Beverage, Food & Tobacco                                 
Huff Hispanic Food Holdings, LLC (g)  L+5.50%  7.30%  10/18/2019  10/18/2024   5,983    5,868    5,989    8.7%
Huff Hispanic Food Holdings, LLC (Delayed Draw) (h) (i)  L+5.50%  7.30%  10/18/2019  10/18/2024   333    —    —    0.0%
Huff Hispanic Food Holdings, LLC (Revolver) (h)   L+5.50%  7.30%  10/18/2019  10/18/2024   1,286    471    471    0.7%
                 7,602    6,339    6,460    9.4%
Consumer Goods: Non-Durable                                 
Quirch Foods Holdings, LLC (g)  L+6.00%  7.79%  2/14/2019  12/19/2025   1,238    1,226    1,238    1.8%
                 1,238    1,226    1,238    1.8%
Containers, Packaging & Glass                                 
Polychem Acquisition, LLC (g)  L+5.00%  6.95%  4/8/2019  3/17/2025   1,985    1,975    1,985    2.9%
                 1,985    1,975    1,985    2.9%
Energy: Oil & Gas                                 
BJ Services, LLC (g)  L+7.00%  8.91%  1/28/2019  1/3/2023   1,925    1,909    1,914    2.8%
BW Gas & Convenience Holdings, LLC (g) (l)  L+6.25%  8.05%  11/15/2019  11/18/2024   2,143    2,057    2,138    3.1%
                 4,068    3,966    4,052    5.9%
Healthcare & Pharmaceuticals                                 
Apotheco, LLC (g)  L+5.50%  7.30%  4/8/2019  4/8/2024   1,741    1,710    1,741    2.5%
Apotheco, LLC (Delayed Draw)  (h) (i)  L+5.50%  7.30%  4/8/2019  4/8/2024   824    —    —    0.0%
Apotheco, LLC (Revolver) (h)  L+5.50%  7.30%  4/8/2019  4/8/2024   455    170    170    0.2%
ERC Finance, LLC (g)  L+4.50%  6.30%  4/23/2019  9/20/2024   1,985    1,953    1,925    2.8%
nThrive, Inc. (g)  L+4.50%  6.30%  5/3/2019  10/20/2022   2,481    2,430    2,079    3.0%
QF Holdings, Inc. (g)  L+7.00%  8.90%  9/19/2019  9/19/2024   4,550    4,464    4,536    6.6%
QF Holdings, Inc. (Delayed Draw) (h) (i)  L+7.00%  8.90%  9/19/2019  9/19/2024   910    —    —    0.0%
QF Holdings, Inc. (Revolver)  (h)  L+7.00%  8.90%  9/19/2019  9/19/2024   546    —    —    0.0%
WebPT, Inc. (g)  L+6.75%  8.66%  8/28/2019  8/28/2024   5,000    4,904    5,001    7.3%
WebPT, Inc. (Delayed Draw)  (h) (i)  L+6.75%  8.66%  8/28/2019  8/28/2024   625    —    —    0.0%
WebPT, Inc. (Revolver) (h)  L+6.75%  8.66%  8/28/2019  8/28/2024   521    —    —    0.0%
                 19,638    15,631    15,452    22.4%
High Tech Industries                                 
Acquia, Inc. (g)  L+7.00%  8.91%  11/1/2019  10/31/2025   5,429    5,324    5,446    7.9%
Acquia, Inc. (Revolver) (h)  L+7.00%  8.91%  11/1/2019  10/31/2025   588    —    —    0.0%
Gigamon, Inc. (g)  L+4.25%  6.04%  4/26/2019  12/27/2024   1,489    1,438    1,476    2.1%
Mindbody, Inc. (g)  L+7.00%  8.79%  2/15/2019  2/14/2025   1,810    1,777    1,803    2.6%
Mindbody, Inc. (Revolver) (h)  L+7.00%  8.79%  2/15/2019  2/14/2025   190    —    —    0.0%
Recorded Future, Inc. (g)  L+6.75%  8.55%  7/3/2019  7/3/2025   3,667    3,596    3,666    5.4%
Recorded Future, Inc. (Delayed Draw) (h) (i)  L+6.75%  8.55%  7/3/2019  7/3/2025   293    —    —    0.0%
Recorded Future, Inc. (Revolver) (h)   L+6.75%   8.55%  7/3/2019  7/3/2025   440    —    —    0.0%
Transact Holdings, Inc. (g) (l)   L+4.75%   6.55%  4/18/2019  4/30/2026   750    739    747    1.1%
                   14,656    12,874    13,138    19.1%

 

 11 

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2019

(in thousands, except for shares and units)

 

Portfolio Company  (a) (b)  Spread Above
 Index (c)		  Interest
Rate		   Acquisition
Date (d)		  Maturity  Principal   Amortized
Cost		   Fair
Value (e)		   % of
Net Assets (f)		 
Media: Advertising, Printing & Publishing                                 
Digital Room Holdings, Inc. (g)  L+5.00%  6.80%  5/9/2019  5/21/2026   2,203   $2,173   $2,093    3.0%
NTM Acquisition Corp. (g)  L+6.25%  8.05%  4/18/2019  6/7/2022   4,928    4,905    4,928    7.2%
                 7,131    7,078    7,021    10.2%
Media: Broadcasting & Subscription                                 
Vice Group Holding, Inc.  L+12.00% 

5.92% Cash/

8.00% PIK

   11/4/2019  11/2/2022   180    180    180    0.3%
Vice Group Holding, Inc.  L+12.00% 

5.92% Cash/

8.00% PIK

   5/2/2019  11/2/2022   938    930    938    1.3%
Vice Group Holding, Inc. (Delayed Draw) (h) (i)  L+12.00%  13.92%  5/2/2019  11/2/2022   300    —    —    0.0%
Vice Group Holding, Inc. (Delayed Draw) (h) (i)  L+12.00%  13.92%  5/2/2019  11/2/2022   120    —    —    0.0%
                 1,538    1,110    1,118    1.6%
Media: Diversified & Production                                 
Crownpeak Technology, Inc.  (g)  L+6.25%  7.94%  2/28/2019  2/28/2024   1,000    983    1,003    1.5%
Crownpeak Technology, Inc. (Delayed Draw) (h) (i)  L+6.25%  7.94%  2/28/2019  2/28/2024   83    15    15    0.0%
Crownpeak Technology, Inc. (Revolver) (h)  L+6.25%  7.94%  2/28/2019  2/28/2024   42    —    —    0.0%
Picture Heads Midco, LLC (g)  L+6.75%  8.55%  8/26/2019  8/31/2023   2,000    1,967    1,978    2.9%
                 3,125    2,965    2,996    4.4%
Services: Business                                 
Arcserve (USA), LLC (g)  L+6.00%  7.91%  5/1/2019  5/1/2024   1,426    1,400    1,435    2.1%
Certify, Inc. (g)  L+5.75%  7.55%  2/28/2019  2/28/2024   1,000    987    993    1.4%
Certify, Inc. (Delayed Draw)  (h) (i)  L+5.75%  7.55%  2/28/2019  2/28/2024   136    68    68    0.1%
Certify, Inc. (Revolver) (h)  L+5.75%  7.55%  2/28/2019  2/28/2024   45    7    7    0.0%
HS4 Acquistionco, Inc. (g)  L+6.75%  8.71%  7/9/2019  7/9/2025   4,000    3,924    3,984    5.8%
HS4 Acquistionco, Inc. (Revolver)  (h)  L+6.75%  8.54%  7/9/2019  7/9/2025   325    49    49    0.1%
Kaseya Traverse, Inc. (g)  L+6.50% 

5.92% Cash/

8.00% PIK

   5/3/2019  5/2/2025   2,511    2,464    2,504    3.6%
Kaseya Traverse, Inc. (Delayed Draw) (h) (i)  L+6.50% 

5.92% Cash/

8.00% PIK

   5/3/2019  5/2/2025   301    39    39    0.1%
Kaseya Traverse, Inc. (Revolver) (h)  L+6.50%  8.30%  5/3/2019  5/2/2025   211    120    120    0.2%
                 9,955    9,058    9,199    13.4%
Services: Consumer                                 
Light Wave Dental Management, LLC (g)  L+6.00%  8.00%  8/1/2019  1/2/2024   1,242    1,215    1,240    1.8%
Light Wave Dental Management, LLC (g)  L+6.00%  8.00%  12/1/2019  1/2/2024   236    236    235    0.3%
Light Wave Dental Management, LLC (g)  L+6.00%  8.00%  12/1/2019  1/2/2024   449    449    448    0.7%
Light Wave Dental Management, LLC  L+6.00%  8.00%  12/6/2019  1/2/2024   365    360    364    0.5%
Light Wave Dental Management, LLC (Delayed Draw) (h) (i)  L+6.00%  8.00%  8/1/2019  1/2/2024   641    21    21    0.0%
Light Wave Dental Management, LLC (Delayed Draw) (h) (i)  L+6.00%  8.00%  12/6/2019  1/2/2024   122    —    —    0.0%
Light Wave Dental Management, LLC (Delayed Draw) (h) (i)  L+6.00%  8.00%  12/6/2019  1/2/2024   1,300    —    —    0.0%
Light Wave Dental Management, LLC (Revolver) (h)  L+6.00%  8.00%  8/1/2019  1/2/2024   128    —    —    0.0%
                 4,483    2,281    2,308    3.3%
Telecommunications                                 
DataOnline Corp. (g)  L+5.50%  7.40%  11/13/2019  11/13/2025   6,500    6,3