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 June 30, 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 August 11, 2020 the registrant had 10,581,364 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 June 30, 2020 (unaudited) and December 31, 2019	3
	Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (unaudited)	4
	Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2020 and 2019 (unaudited)	5
	Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 (unaudited)	6
	Consolidated Schedules of Investments as of June 30, 2020 (unaudited) and December 31, 2019	7
	Notes to Consolidated Financial Statements (unaudited)	15
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	47
PART II. OTHER INFORMATION		48
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	53
Signatures		54

 

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)

 

		June 30, 2020				December 31, 2019
		(unaudited)
ASSETS
Investments at fair value (amortized cost of $158,908 and $99,931, respectively)		$	155,594			$	100,807
Cash and cash equivalents			2,332				2,223
Restricted cash			3,209				1,841
Interest receivable			690				414
Due from affiliates			—				14
Other assets			77				6
Total assets			161,902				105,305
LIABILITIES
Debt:
Revolving credit facility			56,700				31,200
Less: Unamortized deferred financing costs			(827	)			(84	)
Total debt, less unamortized deferred financing costs			55,873				31,116
Interest payable			565				297
Payable for unsettled trades			1,968				2,796
Management fees payable			266				302
Incentive fees payable			—				132
Distributions payable			—				1,387
Accounts payable and accrued expenses			640				530
Total liabilities			59,312				36,560
Net assets		$	102,590			$	68,745
Commitments and contingencies (See Note 9)
ANALYSIS OF NET ASSETS
Common stock, $0.001 par value, 100,000 shares authorized, 10,581 and 6,875 shares issued and outstanding, respectively		$	11			$	7
Capital in excess of par value			104,633				68,718
Accumulated undistributed (overdistributed) earnings			(2,054	)			20
Total net assets		$	102,590			$	68,745
Net asset value per share		$	9.70			$	10.00

 

See Notes to Consolidated Financial Statements.

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited) 

(in thousands, except per share data)

                     

		Three months ended June 30,								Six months ended June 30,
		2020				2019				2020				2019
Investment income:
Interest and dividend income		$	3,250			$	618			$	5,939			$	722
Total investment income			3,250				618				5,939				722
Operating expenses:
Interest and other debt financing expenses			621				161				1,166				183
Base management fees			602				119				1,099				166
Incentive fees			314				30				423				30
Professional fees			99				58				181				118
Administrative service fees			78				55				160				102
General and administrative expenses			55				70				139				114
Directors' fees			15				20				30				35
Expenses before fee waivers and expense reimbursement			1,784				513				3,198				748
Base management fee waiver			(336	)			(119	)			(596	)			(166	)
Incentive fee waiver			(314	)			—				(555	)			—
Expense reimbursement			—				(204	)			—				(370	)
Total expenses, net of fee waivers and expense reimbursement			1,134				190				2,047				212
Net investment income before income taxes			2,116				428				3,892				510
Income taxes, including excise taxes			—				—				12				—
Net investment income			2,116				428				3,880				510
Net gain (loss):
Net change in unrealized gain (loss) on investments			2,134				73				(4,190	)			199
Net gain (loss)			2,134				73				(4,190	)			199
Net increase (decrease) in net assets resulting from operations		$	4,250			$	501			$	(310	)		$	709
Per common share data:
Net investment income per share - basic and diluted		$	0.22			$	0.15			$	0.42			$	0.27
Net increase (decrease) in net assets resulting from operations per share - basic and diluted		$	0.44			$	0.17			$	(0.03	)		$	0.38
Weighted average common shares outstanding - basic and diluted			9,770				2,866				9,321				1,863

 

See Notes to Consolidated Financial Statements.

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited) 

(in thousands)

 

		Common Stock												Accumulated undistributed
		Number of shares				Par value				Capital in excess of par value				(overdistributed) earnings				Total net assets
Balances at March 31, 2019			1,018			$	1			$	10,175			$	—			$	10,176
Net investment income			—				—				—				428				428
Net change in unrealized gain (loss) on investments			—				—				—				73				73
Issuance of common stock			1,893				2				18,929				—				18,931
Distributions declared and payable to stockholders			—				—				—				(501	)			(501	)
Stock issued in connection with dividend reinvestment plan			8				—				85				—				85
Balances at June 30, 2019			2,919			$	3			$	29,189			$	—			$	29,192
Balances at March 31, 2020			8,947			$	9			$	89,442			$	(4,540	)		$	84,911
Net investment income			—				—				—				2,116				2,116
Net change in unrealized gain (loss) on investments			—				—				—				2,134				2,134
Issuance of common stock			1,581				2				14,684				—				14,686
Distributions declared and payable to stockholders			—				—				—				(1,764	)			(1,764	)
Stock issued in connection with dividend reinvestment plan			53				—				507				—				507
Balances at June 30, 2020			10,581			$	11			$	104,633			$	(2,054	)		$	102,590

 

		Common Stock												Accumulated undistributed
		Number of shares				Par value				Capital in excess of par value				(overdistributed) earnings				Total net assets
Balances at December 31, 2018			—			$	—			$	1			$	—			$	1
Net investment income			—				—				—				510				510
Net change in unrealized gain (loss) on investments			—				—				—				199				199
Issuance of common stock			2,911				3				29,103				—				29,106
Distributions declared and payable to stockholders			—				—				—				(709	)			(709	)
Stock issued in connection with dividend reinvestment plan			8				—				85				—				85
Balances at June 30, 2019			2,919			$	3			$	29,189			$	—			$	29,192
Balances at December 31, 2019			6,875			$	7			$	68,718			$	20			$	68,745
Net investment income			—				—				—				3,880				3,880
Net change in unrealized gain (loss) on investments			—				—				—				(4,190	)			(4,190	)
Issuance of common stock			3,617				4				35,051				—				35,055
Distributions declared and payable to stockholders			—				—				—				(1,764	)			(1,764	)
Stock issued in connection with dividend reinvestment plan			89				—				864				—				864
Balances at June 30, 2020			10,581			$	11			$	104,633			$	(2,054	)		$	102,590

 

See Notes to Consolidated Financial Statements.

 

MONROE CAPITAL INCOME PLUS CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited) 

(in thousands)

 

		Six months ended June 30,
		2020				2019
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations		$	(310	)		$	709
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			4,190				(199	)
Payment-in-kind interest income			(83	)			(2	)
Net accretion of discounts and amortization of premiums			(274	)			(16	)
Purchases of investments			(63,141	)			(40,176	)
Proceeds from principal payments and sale of investments			4,521				165
Amortization of deferred financing costs			137				104
Changes in operating assets and liabilities:
Interest receivable			(276	)			(174	)
Due from affiliates			14				(323	)
Other assets			(71	)			(5	)
Interest payable			268				74
Payable for unsettled trades			(828	)			739
Management fees payable			(36	)			—
Incentive fees payable			(132	)			30
Due to broker			—				2,000
Accounts payable and accrued expenses			110				263
Net cash provided by (used in) operating activities			(55,911	)			(36,811	)
Cash flows from financing activities:
Borrowings on revolving credit facility			62,300				11,700
Repayments of revolving credit facility			(36,800	)			—
Payments of deferred financing costs			(880	)			(395	)
Proceeds from issuance of common shares			35,055				29,106
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $864 and $85, respectively			(2,287	)			(123	)
Net cash provided by (used in) financing activities			57,388				40,288
Net increase (decrease) in Cash and Cash equivalents and Restricted cash			1,477				3,477
Cash, Cash equivalents and Restricted cash, beginning of period			4,064				1
Cash, Cash equivalents and Restricted cash, end of period		$	5,541			$	3,478
Supplemental disclosure of cash flow information:
Cash interest paid during the period		$	761			$	5
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:

 

		June 30, 2020				December 31, 2019
Cash and cash equivalents		$	2,332			$	2,223
Restricted cash			3,209				1,841
Total cash, cash equivalents and restricted cash shown on the Consolidated Statements of Cash Flows		$	5,541			$	4,064

 

		June 30, 2019				December 31, 2018
Cash and cash equivalents		$	2,843			$	1
Restricted cash			635				—
Total cash, cash equivalents and restricted cash shown on the Consolidated Statements of Cash Flows		$	3,478			$	1

 

See Notes to Consolidated Financial Statements.       

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 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%		4.43	%		5/2/2019		5/8/2026			1,683			$	1,676			$	1,481				1.4	%
SI Holdings, Inc. (Integrated Polymer Solutions) (g)		L+ 6.00%		7.00	%		12/24/2019		7/25/2025			1,036				1,017				998				1.0	%
SI Holdings, Inc. (Integrated Polymer Solutions) (g)		L+ 6.00%		7.00	%		7/25/2019		7/25/2025			1,985				1,949				1,912				1.9	%
SI Holdings, Inc. (Integrated Polymer Solutions) (Revolver) (h)		L+ 6.00%		7.00	%		7/25/2019		7/25/2024			316				126				122				0.1	%
												5,020				4,768				4,513				4.4	%
Automotive
Rough Country, LLC (g)		L+ 3.50%		4.57	%		4/17/2019		5/25/2023			1,346				1,342				1,278				1.2	%
Truck-Lite Co., LLC (g)		L+ 6.25%		7.32	%		3/11/2020		12/14/2026			3,470				3,436				3,447				3.4	%
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%		4.93	%		5/13/2019		4/4/2025			2,468				2,447				2,274				2.2	%
												7,797				7,225				6,999				6.8	%
Banking, Finance, Insurance & Real Estate
777 SPV I, LLC (Delayed Draw) (i) (j)		L+ 8.50%		10.25	%		4/15/2019		4/14/2023			1,675				1,660				1,677				1.6	%
Avison Young (USA), Inc. (g) (j) (k)		L+ 5.00%		5.30	%		4/26/2019		1/30/2026			1,975				1,958				1,824				1.8	%
InsideRE Holdings, LLC and InsideRE, LLC (g)		L+ 6.50%		7.50	%		9/9/2019		9/9/2024			2,978				2,926				2,996				2.9	%
InsideRE Holdings, LLC and InsideRE, LLC (Revolver) (h)		L+ 6.50%		7.50	%		9/9/2019		9/9/2024			429				—				—				0.0	%
Kudu Investment Holdings, LLC (g) (j)		L+ 6.25%		7.25	%		12/23/2019		12/23/2025			2,750				2,705				2,717				2.6	%
Kudu Investment Holdings, LLC (Delayed Draw) (h) (i) (j)		L+ 6.25%		7.25	%		12/23/2019		12/23/2025			1,833				820				811				0.8	%
Kudu Investment Holdings, LLC (Revolver) (h) (j)		L+ 6.25%		7.25	%		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			1,619				1,596				1,566				1.5	%
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%		7.50	%		9/20/2019		9/20/2024			7,940				7,821				7,899				7.7	%
Team RMS, LLC		L+ 6.00%		7.50	%		9/20/2019		9/20/2024			366				366				364				0.4	%
Team RMS, LLC (Revolver) (h)		L+ 6.00%		7.50	%		9/20/2019		9/20/2024			643				415				415				0.5	%
												22,554				20,267				20,269				19.8	%
Beverage, Food & Tobacco
Huff Hispanic Food Holdings, LLC (g)		L+ 5.50%		6.50	%		10/18/2019		10/18/2024			5,955				5,851				5,913				5.8	%
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				300				298				0.3	%
LX/JT Intermediate Holdings, Inc. (g)		L+ 6.00%		7.50	%		3/11/2020		3/11/2025			5,946				5,834				5,801				5.6	%
LX/JT Intermediate Holdings, Inc. (Revolver) (h)		L+ 6.00%		7.50	%		3/11/2020		3/11/2025			500				—				—				0.0	%
												14,020				11,985				12,012				11.7	%
Capital Equipment
MCP Shaw Acquisitionco, LLC (g)		L+ 6.50%		7.50	%		2/28/2020		11/28/2025			7,980				7,831				7,808				7.6	%
MCP Shaw Acquisitionco, LLC (Revolver)		L+ 6.50%		7.50	%		2/28/2020		11/28/2025			1,427				1,427				1,396				1.4	%
												9,407				9,258				9,204				9.0	%

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 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)
Consumer Goods: Durable
Franchise Group Intermediate Holdco, LLC (g)		L+ 8.00%		9.50	%		2/24/2020		2/14/2025			4,425			$	4,342			$	4,263				4.2	%
												4,425				4,342				4,263				4.2	%
Consumer Goods: Non-Durable
Quirch Foods Holdings, LLC (g)		L+ 5.75%		5.93	%		2/14/2019		12/19/2025			1,231				1,221				1,213				1.2	%
												1,231				1,221				1,213				1.2	%
Containers, Packaging & Glass
Polychem Acquisition, LLC (g)		L+ 5.00%		6.08	%		4/8/2019		3/17/2025			1,975				1,966				1,975				1.9	%
												1,975				1,966				1,975				1.9	%
Energy: Oil & Gas
BJ Services, LLC (g)		L+ 7.00%		8.50	%		1/28/2019		1/3/2023			1,900				1,887				1,898				1.9	%
BW Gas & Convenience Holdings, LLC (g)		L+ 6.25%		6.43	%		11/15/2019		11/18/2024			2,089				2,012				2,034				2.0	%
Fieldwood Energy, LLC (g)		L+ 5.25%		6.25	%(l)		1/11/2020		4/11/2022			1,000				867				199				0.2	%
Par Petroleum, LLC (g)		L+ 6.75%		7.97	%		1/27/2020		1/12/2026			987				994				866				0.8	%
												5,976				5,760				4,997				4.9	%
Healthcare & Pharmaceuticals
Apotheco, LLC (g)		L+ 6.75%		6.50% Cash/ 1.25% PIK			4/8/2019		4/8/2024			1,740				1,712				1,625				1.6	%
Apotheco, LLC (Revolver)		L+ 6.75%		6.50% Cash/ 1.25% PIK			4/8/2019		4/8/2024			455				455				425				0.4	%
Ascent Midco, LLC (g)		L+ 5.75%		6.75	%		2/5/2020		2/5/2025			2,487				2,442				2,452				2.4	%
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				131				129				0.1	%
ERC Finance, LLC (g)		L+ 4.50%		5.57	%		4/23/2019		9/20/2024			1,975				1,946				1,728				1.7	%
nThrive, Inc. (g)		L+ 4.50%		5.50	%		5/3/2019		10/20/2022			2,468				2,426				2,052				2.0	%
QF Holdings, Inc. (g)		L+ 7.00%		8.00	%		9/19/2019		9/19/2024			4,550				4,471				4,470				4.4	%
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%		8.00	%		9/19/2019		9/19/2024			546				73				72				0.1	%
WebPT, Inc. (g)		L+ 6.75%		7.75	%		8/28/2019		8/28/2024			5,000				4,914				5,030				4.9	%
WebPT, Inc. (Delayed Draw) (h) (i)		L+ 6.75%		7.75	%		8/28/2019		8/28/2024			625				—				—				0.0	%
WebPT, Inc. (Revolver)		L+ 6.75%		7.75	%		8/28/2019		8/28/2024			521				521				521				0.4	%
												22,694				19,091				18,504				18.0	%
High Tech Industries
Acquia, Inc. (g)		L+ 7.00%		8.00	%		11/1/2019		10/31/2025			5,429				5,331				5,501				5.4	%
Acquia, Inc. (Revolver) (h)		L+ 7.00%		8.00	%		11/1/2019		10/31/2025			588				—				—				0.0	%
Instructure, Inc. (g)		L+ 7.00%		8.00	%		3/24/2020		3/24/2026			8,978				8,869				8,937				8.7	%
Instructure, Inc. (Revolver) (h)		L+ 7.00%		8.00	%		3/24/2020		3/24/2026			697				—				—				0.0	%
Mindbody, Inc. (g)		L+ 8.50%		8.00% Cash/ 1.50% PIK			2/15/2019		2/14/2025			1,812				1,782				1,735				1.7	%
Mindbody, Inc. (Revolver)		L+ 8.00%		9.07	%		2/15/2019		2/14/2025			190				190				182				0.2	%
Recorded Future, Inc. (g)		L+ 6.25%		7.25	%		7/3/2019		7/3/2025			3,667				3,602				3,740				3.6	%
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				0.3	%
Transact Holdings, Inc. (g)		L+ 4.75%		4.93	%		4/18/2019		4/30/2026			744				733				677				0.6	%
												22,838				20,800				21,065				20.5	%

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 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)
Media: Advertising, Printing & Publishing
Digital Room Holdings, Inc. (g)		L+ 5.00%		6.07	%		5/9/2019		5/21/2026			2,192			$	2,166			$	1,754				1.7	%
NTM Acquisition Corp. (g)		L+ 6.25%		7.25	%		4/18/2019		6/7/2022			4,841				4,823				4,357				4.2	%
XanEdu Publishing, Inc. (g)		L+ 6.50%		7.50	%		1/28/2020		1/28/2025			2,494				2,448				2,473				2.5	%
XanEdu Publishing, Inc. (Revolver) (h)		L+ 6.50%		7.50	%		1/28/2020		1/28/2025			651				649				644				0.6	%
												10,178				10,086				9,228				9.0	%
Media: Broadcasting & Subscription
Vice Group Holding, Inc.		L+ 12.00%		5.50% Cash/ 8.00% PIK			11/4/2019		11/2/2022			187				187				186				0.2	%
Vice Group Holding, Inc.		L+ 12.00%		5.50% Cash/ 8.00% PIK			5/2/2019		11/2/2022			976				969				969				0.9	%
Vice Group Holding, Inc.		L+ 12.00%		5.50% Cash/ 8.00% PIK			5/2/2019		11/2/2022			306				306				304				0.3	%
Vice Group Holding, Inc. (Delayed Draw) (h) (i)		L+ 12.00%		13.50	%		5/2/2019		11/2/2022			120				—				—				0.0	%
												1,589				1,462				1,459				1.4	%
Media: Diversified & Production
Crownpeak Technology, Inc. (g)		L+ 6.25%		7.25	%		2/28/2019		2/28/2024			1,000				985				984				1.0	%
Crownpeak Technology, Inc.		L+ 6.25%		7.25	%		2/28/2019		2/28/2024			15				15				15				0.0	%
Crownpeak Technology, Inc. (Revolver) (h)		L+ 6.25%		7.25	%		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				1,970				1,869				1.8	%
												3,057				2,970				2,868				2.8	%
Metals & Mining
Contura Energy, Inc. (g)		L+ 7.00%		9.00	%		1/15/2020		6/14/2024			995				834				656				0.6	%
												995				834				656				0.6	%
Services: Business
Arcserve (USA), LLC (g)		L+ 5.50%		6.50	%		5/1/2019		5/1/2024			1,408				1,386				1,363				1.4	%
Certify, Inc. (g)		L+ 5.75%		6.75	%		2/28/2019		2/28/2024			1,000				988				995				1.0	%
Certify, Inc. (Delayed Draw) (h) (i)		L+ 5.75%		6.75	%		2/28/2019		2/28/2024			136				114				113				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%		5.75	%		1/28/2020		4/28/2021			1,496				1,295				940				0.9	%
Governmentjobs.com, Inc. (g)		L+ 6.50%		7.50	%		2/5/2020		2/5/2026			7,000				6,869				6,808				6.6	%
Governmentjobs.com, Inc. (Revolver) (h)		L+ 6.50%		7.50	%		2/5/2020		2/5/2026			933				70				68				0.1	%
HS4 Acquistionco, Inc. (g)		L+ 6.75%		7.75	%		7/9/2019		7/9/2025			4,000				3,930				3,906				3.8	%
HS4 Acquistionco, Inc. (Revolver) (h)		L+ 6.75%		7.75	%		7/9/2019		7/9/2025			325				106				103				0.1	%
Kaseya Traverse, Inc. (m)		L+ 7.00%		5.09% Cash/ 3.00% PIK			5/3/2019		5/2/2025			2,717				2,671				2,650				2.6	%
Kaseya Traverse, Inc. (Delayed Draw) (h) (i)		L+ 7.00%		5.09% Cash/ 3.00% PIK			5/3/2019		5/2/2025			302				40				39				0.0	%
Kaseya Traverse, Inc. (Delayed Draw) (h) (i)		L+ 7.00%		5.09% 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				204				0.2	%
												19,695				17,685				17,196				16.8	%
Services: Consumer
Light Wave Dental Management, LLC (g)		L+ 4.50%		6.50	%		8/1/2019		1/2/2024			1,227				1,212				1,205				1.2	%
Light Wave Dental Management, LLC (g)		L+ 4.50%		6.50	%		12/1/2019		1/2/2024			233				230				228				0.2	%
Light Wave Dental Management, LLC (g)		L+ 4.50%		6.50	%		12/1/2019		1/2/2024			443				437				435				0.5	%
Light Wave Dental Management, LLC (g)		L+ 4.50%		6.50	%		12/6/2019		1/2/2024			121				121				119				0.1	%
Light Wave Dental Management, LLC (g)		L+ 4.50%		6.50	%		12/6/2019		1/2/2024			1,292				1,292				1,269				1.2	%
Light Wave Dental Management, LLC (g)		L+ 4.50%		6.50	%		2/12/2020		1/2/2024			63				62				62				0.1	%
Light Wave Dental Management, LLC		L+ 4.50%		6.50	%		12/6/2019		1/2/2024			361				356				354				0.3	%
Light Wave Dental Management, LLC		L+ 4.50%		6.50	%		8/1/2019		1/2/2024			244				244				239				0.2	%
Light Wave Dental Management, LLC (Revolver)		L+ 4.50%		6.50	%		8/1/2019		1/2/2024			128				128				126				0.1	%
												4,112				4,082				4,037				3.9	%

 

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 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)
Telecommunications
DataOnline Corp. (g)		L+ 5.75%		6.75	%		11/13/2019		11/13/2025			6,468			$	6,338			$	6,151				6.0	%
DataOnline Corp. (Revolver) (h)		L+ 5.75%		6.75	%		11/13/2019		11/13/2025			844				633				602				0.6	%
												7,312				6,971				6,753				6.6	%
Transportation: Cargo
Pasha Group (g) (n)		L+ 7.50%		8.50	%		2/25/2020		1/26/2023			1,961				1,968				1,814				1.8	%
												1,961				1,968				1,814				1.8	%
Total Senior Secured Loans												166,836				152,741				149,025				145.3	%
Unitranche Secured Loans (o)
Services: Consumer
QuoteLab, LLC (g)		L+ 4.60%		5.60	%		2/26/2019		2/26/2025			997				982				992				1.0	%
												997				982				992				1.0	%
Total Unitranche Secured Loans												997				982				992				1.0	%
Junior Secured Loans
Capital Equipment
ALTA Enterprises, LLC (g) (j)		L+ 8.00%		9.80	%		2/14/2020		8/13/2025			3,950				3,820				3,934				3.8	%
												3,950				3,820				3,934				3.8	%
Total Junior Secured Loans												3,950				3,820				3,934				3.8	%
Equity Securities  (p) (q)
Banking, Finance, Insurance & Real Estate
InsideRE Holdings, LLC and InsideRE, LLC (257,143 Class A common units)		—		—	(r)		9/9/2019		—			—				268				277				0.2	%
																268				277				0.2	%
Beverage, Food & Tobacco
Huff Hispanic Food Holdings, LLC (171,429 Class A interests)		—		—	(r)		10/18/2019		—			—				171				162				0.2	%
																171				162				0.2	%
Capital Equipment
MCP Shaw Acquisitionco, LLC (95,125 Class A-2 units)		—		—	(r)		2/28/2020		—			—				95				105				0.1	%
																95				105				0.1	%
Healthcare & Pharmaceuticals
Ascent Midco, LLC (725,806 Class A units)		L+ 8.00%		8.00% PIK			2/5/2020		—			—				726				978				1.0	%
																726				978				1.0	%
High Tech Industries
Recorded Future, Inc. (40,040 Class A units) (s)		—		—	(r)		7/3/2019		—			—				40				49				0.0	%
																40				49				0.0	%
Media: Advertising, Printing & Publishing
XanEdu Publishing, Inc. (65,104 Class A units)		L+ 8.00%		8.00% PIK			1/28/2020		—			—				65				72				0.1	%
																65				72				0.1	%
Total Equity Securities																1,365				1,643				1.6	%
TOTAL INVESTMENTS															$	158,908			$	155,594				151.7	%

 

 

MONROE CAPITAL INCOME PLUS CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 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 1940 Act classifies 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 June 30, 2020. Certain investments are subject to a LIBOR interest rate floor or interest rate cap.

(d) Except as otherwise noted, all of the Company’s portfolio company investments, which as of June 30, 2020 represented 151.7% 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 each 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 $102,590 as of June 30, 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 June 30, 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 by the Company.

(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 June 30, 2020, non-qualifying assets totaled 7.7% of the Company’s total assets.

(k) This is an international company.

(l) This position was on non-accrual status as of June 30, 2020, meaning that the Company has ceased accruing interest income on the position. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s accounting policies.

(m) A portion of this loan (principal of $2,536) is held in the SPV as collateral for the revolving Credit Facility.

(n) Investment position or portion thereof unsettled as of June 30, 2020.

(o) 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.

(p) Represents less than 5% ownership of the portfolio company's voting securities.

(q) Ownership of certain equity investments may occur through a holding company or partnership.

(r) Represents a non-income producing security.

(s) As of June 30, 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. 

 

 

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	%

 

 

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