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EX-31.2 - EXHIBIT 31.2 - PhenixFIN Corpv374956_ex31-2.htm
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EX-31.1 - EXHIBIT 31.1 - PhenixFIN Corpv374956_ex31-1.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

 

x            QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended March 31, 2014

 

OR

 

¨            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

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 incorporation or organization)   (I.R.S. Employer Identification No.)

 

375 Park Avenue, Suite 3304

New York, NY 10152

(Address of principal executive offices)

 

(212) 759-0777

(Registrant’s telephone number, including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

 

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ¨ No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ¨ Accelerated filer x
Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller reporting company ¨

 

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 1, 2014, the Registrant had 52,283,712 shares of common stock, $0.001 par value, outstanding. 

 

 
 

  

TABLE OF CONTENTS

 

        Page
         
Part I.   Financial Information   F-1
         
Item 1.   Financial Statements   F-1
         
    Consolidated Statements of Assets and Liabilities as of  March 31, 2014 (unaudited) and September 30, 2013   F-1
         
    Consolidated Statements of Operations for the three and six months ended  March 31, 2014 and 2013 (unaudited)   F-2
         
    Consolidated Statements of Changes in Net Assets for the six months ended  March 31, 2014 and 2013 (unaudited)   F-3
         
    Consolidated Statements of Cash Flows for the six months ended March 31, 2014 and 2013 (unaudited)   F-4
         
    Consolidated Schedules of Investments as of  March 31, 2014 (unaudited) and September 30, 2013   F-5
         
    Notes to Consolidated Financial Statements (unaudited)   F-12
         
Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations   1
         
Item 3.   Quantitative and Qualitative Disclosures About Market Risk   14
         
Item 4.   Controls and Procedures   15
         
Part II.   Other Information   16
         
Item 1.   Legal Proceedings   16
         
Item 1A.   Risk Factors   16
         
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds   16
         
Item 3.   Defaults Upon Senior Securities   16
         
Item 4.   Mine Safety Disclosures   16
         
Item 5.   Other Information   16
         
Item 6.   Exhibits   17
         
SIGNATURES   18

 

 
 

  

Medley Capital Corporation

 

Consolidated Statements of Assets and Liabilities

 

   As of 
   March 31, 2014   September 30, 2013 
   (unaudited)     
ASSETS          
Investments at fair value          
Non-controlled/non-affiliated investments (amortized cost of $964,610,713 and $748,405,904, respectively)  $949,196,688   $740,097,249 
Affiliated investments (amortized cost of $9,604,239 and $9,283,640, respectively)   9,804,849    9,139,377 
Total investments at fair value   959,001,537    749,236,626 
Cash   22,672,886    8,557,899 
Interest receivable   12,376,761    9,607,539 
Deferred financing costs, net   8,374,690    8,523,291 
Fees receivable   431,417    - 
Other assets   301,075    249,388 
Receivable for paydown of investments   1,365,600    - 
Deferred offering costs   337,957    218,681 
Total assets  $1,004,861,923   $776,393,424 
           
LIABILITIES          
Revolving credit facility payable  $136,200,000   $2,500,000 
Term loan payable   120,000,000    120,000,000 
Notes payable   103,500,000    103,500,000 
SBA debentures payable   44,000,000    30,000,000 
Payable for investments originated, purchased, and participated   1,176,305    54,013 
Management and incentive fees payable, net   8,217,029    6,899,653 
Accounts payable and accrued expenses   1,755,207    1,305,361 
Interest and fees payable   1,276,143    1,155,524 
Administrator expenses payable   840,566    701,208 
Deferred revenue   327,185    255,922 
Deferred tax liability   316,858    - 
Due to affiliate   3,389    82,083 
Offering costs payable   9,359    105,205 
Total liabilities  $417,622,041   $266,558,969 
           
Commitments (See note 8)          
           
NET ASSETS          
Common stock, par value $.001 per share, 100,000,000 common shares authorized, 46,283,712 and 40,152,904 common shares issued and outstanding, respectively  $46,284   $40,153 
Capital in excess of par value   588,676,918    506,062,597 
Accumulated undistributed net investment income   13,820,206    12,184,623 
Accumulated undistributed net realized gain/(loss) from investments   73,052    - 
Net unrealized appreciation/(depreciation) on investments   (15,376,578)   (8,452,918)
Total net assets   587,239,882    509,834,455 
Total liabilities and net assets  $1,004,861,923   $776,393,424 
           
NET ASSET VALUE PER SHARE  $12.69   $12.70 

 

See accompanying notes to consolidated financial statements.

 

F-1
 

 

Medley Capital Corporation

 

Consolidated Statements of Operations

 

   For the three months ended March 31   For the six months ended March 31 
   2014   2013   2014   2013 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
INVESTMENT INCOME                    
Interest from investments                    
Non-controlled/Non-affiliated investments  $25,602,922   $16,339,659   $50,292,812   $30,810,626 
Affiliated investments   391,863    367,177    784,909    735,713 
Total interest income   25,994,785    16,706,836    51,077,721    31,546,339 
Interest from cash and cash equivalents   2,354    2,412    4,308    3,515 
Other fee income (See note 9)   5,400,886    3,498,191    11,984,234    6,377,067 
Total investment income   31,398,025    20,207,439    63,066,263    37,926,921 
                     
EXPENSES                    
Base management fees   4,078,221    2,533,841    7,743,187    4,629,797 
Incentive fees   4,138,807    2,599,111    8,396,522    5,003,393 
Interest and financing expenses   4,613,661    2,933,456    9,153,907    5,250,742 
Administrator expenses   840,566    569,380    1,512,562    1,091,424 
Professional fees   542,689    548,589    1,157,012    840,702 
Directors fees   190,125    131,125    341,250    243,661 
Insurance   136,720    73,323    276,285    140,759 
General and administrative   302,007    273,559    899,450    564,261 
Organizational expense     -    148,611    -    148,611 
Total expenses   14,842,796    9,810,995    29,480,175    17,913,350 
NET INVESTMENT INCOME   16,555,229    10,396,444    33,586,088    20,013,571 
                     
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:                    
Net realized gain/(loss) from investments   28,052    152,434    73,052    374,354 
Net unrealized appreciation/(depreciation) on investments   (3,978,116)  974,271    (6,760,497)   747,827 
Net unrealized appreciation/(depreciation) on participations   153,695    -    153,695    - 
Provision for taxes on unrealized gain/(loss) on investments   (316,858)   -    (316,858)    - 
Net gain/(loss) on investments   (4,113,227)   1,126,705    (6,850,608)   1,122,181 
                     
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS  $12,442,002   $11,523,149   $26,735,480   $21,135,752 
                     
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE  $0.28   $0.40   $0.64   $0.79 
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE  $0.38   $0.36   $0.80   $0.75 
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING                    
- BASIC AND DILUTED (SEE NOTE 11)   43,883,259    28,669,859    42,002,482    26,697,175 
                     
DIVIDENDS DECLARED PER COMMON SHARE  $0.37   $0.36   $0.74   $0.72 

 

See accompanying notes to consolidated financial statements.

 

F-2
 

 

Medley Capital Corporation

 

Consolidated Statements of Changes in Net Assets

 

   For the six months ended March 31 
   2014   2013 
   (unaudited)   (unaudited) 
INCREASE FROM OPERATIONS:          
Net investment income  $33,586,088   $20,013,571 
Net realized gain/(loss) from investments   73,052    374,354 
Net unrealized appreciation/(depreciation) on investments   (6,760,497)   747,827 
Net unrealized appreciation/(depreciation) on participations   153,695    - 
Provision For taxes on unrealized gain/(loss) on investments   (316,858)   - 
Net increase/(decrease) in net assets from operations   26,735,480    21,135,752 
SHAREHOLDER DISTRIBUTIONS:          
Distributions declared from net investment income   (31,950,505)   (18,638,027)
Net decrease in net assets from shareholder distributions   (31,950,505)   (18,638,027)
CAPITAL SHARE TRANSACTIONS:          
Issuance of common stock, net of underwriting costs (6,000,000 and 5,495,263 shares, respectively)   81,060,000    72,537,472 
Offering costs   (132,715)   (270,096)
Issuance of common stock under dividend reinvestment plan (130,808 and 97,892 shares, respectively)   1,693,167    1,376,747 
Net increase in net assets from common share transactions   82,620,452    73,644,123 
Total increase/(decrease) in net assets   77,405,427    76,141,848 
Net assets at beginning of period   509,834,455    289,339,231 
           
Net assets at end of period including accumulated undistributed net investment income of $13,820,206 and $6,935,179, respectively  $587,239,882   $365,481,079 
           
Net asset value per common share  $12.69   $12.73 
Common shares outstanding at end of period   46,283,712    28,703,397 

 

See accompanying notes to consolidated financial statements.

 

F-3
 

 

Medley Capital Corporation

 

Consolidated Statements of Cash Flows

 

   For the six months ended March 31 
   2014   2013 
   (unaudited)   (unaudited) 
Cash flows from operating activities          
NET INCREASE IN NET ASSETS FROM OPERATIONS  $26,735,480   $21,135,752 
ADJUSTMENTS TO RECONCILE NET INCREASE IN NET ASSETS FROM OPERATIONS TO NET CASH USED BY OPERATING ACTIVITIES:          
Investment increases due to paid-in-kind interest   (5,320,542)   (4,088,581)
Net amortization of premium/(discount) on investments   (256,725)   (367,145)
Amortization of deferred financing costs   995,749    606,053 
Net realized (gain)/loss from investments   (73,052)   (374,354)
Net deferred income taxes   316,858    - 
Net unrealized (appreciation)/depreciation on investments   6,760,497    (747,827)
Net unrealized (appreciation)/depreciation on participations   (153,695)   - 
Proceeds from sale and settlements of investments   143,038,959    92,094,021 
Purchases, originations, and participations   (353,760,353)   (278,730,223)
(Increase)/decrease in operating assets:          
Interest receivable   (2,769,222)   (3,081,967)
Fees receivable   (431,417)   (840,000)
Other assets   (51,687)   2,214 
Receivable for paydown of investments   (1,365,600)   - 
Increase (decrease)/in operating liabilities:          
Payable for investments purchased, originated, and participated   1,122,292   20,528,275 
Accounts payable and accrued expenses   449,846    337,563 
Management and incentive fees payable, net   1,317,376    1,618,181 
Administrator expenses payable   139,358    114,324 
Interest and fees payable   120,619    606,434 
Deferred revenue   71,263    (57,107)
Due to affiliate   (78,694)   24,762 
Accrued organizational costs   -    42,559 
NET CASH USED BY OPERATING ACTIVITIES   (183,192,690)   (151,177,066)
           
Cash flows from financing activities          
Proceeds from issuance of common stock, net of underwriting costs   82,753,167    73,914,219 
Offering cost paid   (347,836)   (379,854)
Borrowings on debt   251,300,000    252,600,000 
Paydowns on debt   (103,600,000)   (128,000,000)
Financing cost paid   (847,149)   (3,553,338)
Payments of cash dividends   (31,950,505)   (18,638,025)
NET CASH PROVIDED BY FINANCING ACTIVITIES   197,307,677    175,943,002 
           
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS   14,114,987    24,765,936 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   8,557,899    4,893,616 
CASH AND CASH EQUIVALENTS, END OF PERIOD  $22,672,886   $29,659,552 
           
Supplemental Information:          
Interest paid during the period  $7,999,150   $4,000,858 
Supplemental non-cash information          
Paid-in-kind interest income  $5,482,666   $4,088,581 
Net amortization of premium/(discount) on investments  $256,725   $367,145 
Amortization of deferred financing costs  $(995,749)  $(606,053)
Issuance of common stock in connection with dividend reinvestment plan  $1,693,167   $1,376,747 

 

See accompanying notes to consolidated financial statements.

 

F-4
 

 

Medley Capital Corporation

 

Consolidated Schedule of Investments

 

March 31, 2014

(unaudited)

 

Company (1)   Industry   Type of Investment   Maturity   Par Amount (2)     Cost(15)     Fair Value     % of
Net Assets (3)
 
                                     
Non-Controlled/ Non-Affiliated Investments:                                            
                                             
Accupac, Inc.   Containers, Packaging and Glass   Senior Secured Second Lien Term Loan (12.29%)   11/10/2018     10,000,000       10,000,000       10,100,000       1.7 %
                  10,000,000       10,000,000       10,100,000          
                                             
Aderant North America, Inc.   Electronics   Senior Secured Second Lien Term Loan (LIBOR + 8.75% , 1.25% LIBOR Floor)   6/20/2019     4,550,000       4,550,000       4,567,881       0.8 %
                  4,550,000       4,550,000       4,567,881          
                                             
Albertville Quality Foods, Inc. (13)   Beverage, Food and Tobacco   Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap)   10/31/2018     17,452,830       17,452,830       17,452,830       3.0 %
                  17,452,830       17,452,830       17,452,830          
                                             
Allen Edmonds Corporation   Retail Stores   Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)   5/27/2019     20,000,000       20,000,000       20,085,600       3.4 %
                  20,000,000       20,000,000       20,085,600          
                                             
Alora Pharmaceuticals LLC (13)   Healthcare, Education and Childcare   Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)   9/13/2018     13,650,000       13,650,000       13,716,339       2.3 %
                  13,650,000       13,650,000       13,716,339          
                                             
AM3 Pinnacle Corporation   Telecommunications   Senior Secured First Lien Term Loan (10.00%)   10/22/2018     7,971,534       7,971,534       7,971,534       1.4 %
                  7,971,534       7,971,534       7,971,534          
                                             
American Apparel, Inc.(8)   Retail Stores   Senior Secured Note (13.00% Cash, 2.00% PIK)   4/15/2020     13,140,833       12,785,899       11,728,194       2.0 %
                  13,140,833       12,785,899       11,728,194          
                                             
Amerit Fleet Services, Inc.   Business Services   Senior Secured Second Lien Term Loan
(LIBOR + 9.70% Cash, 1.00% LIBOR Floor, 1.50% PIK)
  12/21/2016     8,616,404       8,616,404       8,637,342       1.5 %
                  8,616,404       8,616,404       8,637,342          
                                             
ARBOC Specialty Vehicles LLC   Automobile   Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor)   3/21/2018     23,750,000       23,750,000       23,917,912       4.1 %
                  23,750,000       23,750,000       23,917,912          
                                             
Aurora Flight Sciences Corporation   Aerospace & Defense   Senior Secured Second Lien Term Loan
(11.25% Cash, 2.00% PIK)
  3/16/2016     15,968,346       15,968,346       15,968,346       2.7 %
                  15,968,346       15,968,346       15,968,346          
                                             
BayDelta Maritime LLC   Cargo Transport   Senior Secured First Lien Term Loan (11.25% Cash, 2.50% Deferred)   6/30/2016     6,669,292       6,588,450       6,720,912       1.1 %
        Fee Note (14.88%)(6)   6/30/2016     250,000       182,940       182,940       0.0 %
        Warrants to purchase 10% of the outstanding equity   6/30/2016     -       25,000       323,457       0.1 %
                  6,919,292       6,796,390       7,227,309          
                                             
Be Green Manufacturing and Distribution Centers LLC (11)   Containers, Packaging and Glass   Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor)   12/13/2018     5,000,000       5,000,000       5,000,000       0.9 %
        Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor)   12/13/2018     500,000       500,000       500,000       0.1 %
        Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor)   12/13/2018     354,167       354,167       354,167       0.1 %
        1.74% Partnership Interest in RCAF VI CIV XXIII, L.P.         -       416,250       372,165       0.1 %
                  5,854,167       6,270,417       6,226,332          
                                             
Brantley Transportation LLC (13)   Oil and Gas   Senior Secured First Lien Term Loan (12.00%)   8/2/2017     9,825,000       9,990,434       9,837,969       1.7 %
                  9,825,000       9,990,434       9,837,969          
                                             
California Products Corporation   Chemicals, Plastics and Rubber   Senior Secured Second Lien Term Loan (13.00%)   5/27/2019     13,750,000       13,750,000       13,750,000       2.3 %
                  13,750,000       13,750,000       13,750,000          
                                             
Calloway Laboratories, Inc.   Healthcare, Education and Childcare   Senior Secured First Lien Term Loan (17.00% PIK)   9/30/2014     28,169,808       26,810,588       17,195,911       2.9 %
        Warrants to purchase 15.00% of the outstanding equity   9/30/2014     -       68,433       -       0.0 %
                  28,169,808       26,879,021       17,195,911          
                                             
Dispensing Dynamics International(8)   Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured Note (12.50%)   1/1/2018     4,800,000       4,722,528       4,869,360       0.8 %
                  4,800,000       4,722,528       4,869,360          
                                             
DLR Restaurants LLC (13)   Restaurant & Franchise   Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)   4/18/2018     20,176,247       20,176,247       20,290,646       3.5 %
        Unsecured Debt (12.00% Cash, 4.00% PIK)   4/18/2018     259,838       259,838       261,683       0.0 %
                  20,436,085       20,436,085       20,552,329          
                                             
DreamFinders Homes LLC (11) (14)   Buildings and Real Estate   Senior Secured First Lien Term Loan A (LIBOR + 10.00% Cash)   4/30/2014     12,500,000       12,500,000       12,500,000       2.1 %
        Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)   9/13/2018     6,909,777       6,744,357       6,679,173       1.1 %
        Warrants to purchase 5% of outstanding equity   9/13/2018     -       180,000       1,156,020       0.2 %
                  19,409,777       19,424,357       20,335,193          

 

F-5
 

                                             
Dynamic Energy Services International LLC   Oil and Gas   Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)   3/6/2018     19,000,000       19,000,000       19,000,000       3.2 %
                  19,000,000       19,000,000       19,000,000          
                                             
Exide Technologies (10)   Machinery (Nonagriculture, Nonconstruction, Nonelectric)   Senior Secured Note (8.63%)   2/1/2018     11,000,000       9,006,908       8,167,500       1.4 %
                  11,000,000       9,006,908       8,167,500          
                                             
FC Operating LLC   Retail Stores   Senior Secured First Lien Term Loan (LIBOR + 10.75% Cash, 1.25% LIBOR Floor)   11/14/2017     10,350,000       10,350,000       10,095,700       1.7 %
                  10,350,000       10,350,000       10,095,700          
                                             
Geneva Wood Fuels LLC (4)(12)   Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured First Lien Term Loan (4.50% Cash, 10.50% PIK)   12/31/2014     8,199,184       8,143,385       4,090,000       0.7 %
                  8,199,184       8,143,385       4,090,000          
                                             
GSG Fasteners, LLC (13)   Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)   11/18/2018     8,887,500       8,887,500       8,887,500       1.5 %
                  8,887,500       8,887,500       8,887,500          
                                             
Harrison Gypsum LLC (13)   Mining, Steel, Iron and Nonprecious Metals   Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)   12/21/2017     23,391,443       23,391,443       23,226,065       4.0 %
                  23,391,443       23,391,443       23,226,065          
                                             
HD Vest, Inc.   Finance   Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.25% LIBOR Floor)   6/18/2019     8,750,000       8,750,000       8,866,462       1.5 %
                  8,750,000       8,750,000       8,866,462          
                                             
Help/Systems LLC   Business Services   Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)   6/28/2020     15,000,000       15,000,000       15,054,750       2.6 %
                  15,000,000       15,000,000       15,054,750          
                                             
HGDS Acquisition LLC   Business Services   Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 3.50% PIK)   3/28/2018     11,256,219       11,256,219       11,069,816       1.9 %
                  11,256,219       11,256,219       11,069,816          
                                             
Hoffmaster Group, Inc.   Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured Second Lien Term Loan
(LIBOR + 9.50% Cash, 1.50% LIBOR Floor)
  1/3/2019     6,000,000       6,000,000       6,040,800       1.0 %
        Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.25% LIBOR Floor)   1/3/2019     2,000,000       1,984,241       1,959,920       0.3 %
                  8,000,000       7,984,241       8,000,720          
                                             
Ingenio Acquisition LLC   Personal, Food and Miscellaneous Services   Senior Secured First Lien Term Loan (11.25%)   3/14/2019     23,790,790       23,790,790       23,790,790       4.1 %
                  23,790,790       23,790,790       23,790,790          
                                             
Insight Pharmaceuticals LLC   Personal, Food and Miscellaneous Services   Senior Secured Second Lien Term Loan (LIBOR + 11.75%, 1.50% LIBOR Floor)   8/25/2017     7,724,138       7,724,138       7,791,029       1.3 %
                  7,724,138       7,724,138       7,791,029          
                                             
Integra Telecom   Telecommunications   Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.25% LIBOR Floor)   2/22/2020     12,132,000       12,156,594       12,442,094       2.1 %
                  12,132,000       12,156,594       12,442,094          
                                             
Interface Security Systems(8)   Electronics   Senior Secured Note (9.25%)   1/15/2018     3,333,000       3,333,000       3,413,459       0.6 %
                  3,333,000       3,333,000       3,413,459          
                                             
JD Norman Industries, Inc.   Diversified/Conglomerate Manufacturing   Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash)   3/6/2019     24,000,000       24,000,000       24,000,000       4.1 %
                  24,000,000       24,000,000       24,000,000          
                                             
Lexmark Carpet Mills, Inc.   Home and Office Furnishings, Housewares, and Durable Consumer Products   Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor, 2.50% LIBOR Cap)   9/30/2018     31,000,000       31,000,000       31,426,870       5.4 %
                  31,000,000       31,000,000       31,426,870          
                                             
Lighting Science Group Corporation (11)   Containers, Packaging and Glass   Senior Secured First Lien Delayed Draw (LIBOR + 8.50% Cash, 2.00% PIK)   2/19/2016     5,001,389       5,001,389       5,001,389       0.9 %
        Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)   2/19/2019     15,258,472       14,317,793       14,317,793       2.4 %
        Warrants to purchase 2.41% of the outstanding equity         -       955,680       955,680       0.2 %
                  20,259,861       20,274,862       20,274,862          
                                             
Linc Energy Finance (USA), Inc.(8)   Oil and Gas   Senior Secured Note (12.50%)   10/31/2017     3,500,000       3,402,412       3,843,350       0.6 %
                  3,500,000       3,402,412       3,843,350          
                                             
Lucky Strike Entertainment, L.L.C.   Leisure, Amusement, Motion Pictures, Entertainment   Senior Secured Second Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 2.00% PIK)   12/24/2018     11,504,472       11,504,472       11,504,472       2.0 %
                  11,504,472       11,504,472       11,504,472          
                                             
Lydell Jewelry Design Studio LLC (11)(13)(14)   Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured First Lien Term Loan (LIBOR + 10.50%, 1.50% LIBOR Floor)   9/13/2018     13,072,000       13,072,000       12,566,600       2.1 %
        Warrants to purchase 13.3% of the outstanding membership units   9/13/2018     -       -       -       0.0 %
                  13,072,000       13,072,000       12,566,600          
                                             
Marine Accessories Corporation   Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 1.00% PIK)   11/26/2018     10,026,413       10,026,413       10,026,413       1.7 %
                  10,026,413       10,026,413       10,026,413          

 

F-6
 

                                             
Merchant Cash and Capital LLC (11)   Structure Finance Securities   Senior Secured First Lien Delayed Draw (LIBOR + 8.00% Cash, 3.00% LIBOR Floor)   3/4/2016     9,403,333       9,403,333       9,403,333       1.6 %
                  9,403,333       9,403,333       9,403,333          
                                             
Meridian Behavioral Health LLC   Healthcare, Education and Childcare   Senior Secured First Lien Term Loan A (LIBOR + 11.50%, 2.50% LIBOR Floor)   11/14/2016     10,289,141       9,950,429       10,353,654       1.8 %
        Senior Secured First Lien Term Loan B (LIBOR + 11.50%, 2.50% LIBOR Floor)   11/14/2016     850,000       850,000       850,000       0.2 %
        Warrants to purchase 8% of the outstanding equity   11/14/2016     -       536,296       1,360,054       0.2 %
                  11,139,141       11,336,725       12,563,708          
                                             
Modern VideoFilm, Inc.   Leisure, Amusement, Motion Pictures, Entertainment   Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor, 3.00% PIK)   9/25/2017     12,701,488       12,388,199       10,669,250       1.8 %
        Warrants to purchase 4.5%
of the outstanding equity
  9/25/2017     -       339,573       -       0.0 %
                  12,701,488       12,727,772       10,669,250          
                                             
Momentum Telecom, Inc. (11)   Telecommunications   Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)   3/10/2019     10,000,000       10,000,000       10,000,000       1.7 %
        Revolver (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(7)   3/10/2019     -       -       -       0.0 %
                  10,000,000       10,000,000       10,000,000          
                                             
NCM Demolition and Remediation LP   Buildings and Real Estate   Senior Secured First Lien Term Loan (LIBOR + 11.50%, 1.00% LIBOR Floor)   8/29/2018     19,291,000       19,291,000       20,255,550       3.4 %
                  19,291,000       19,291,000       20,255,550          
                                             
Physicians Care Alliance LLC (11)(13)(14)   Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured First Lien Term Loan (10.00% Cash, 1.00% PIK)   12/28/2017     15,737,690       15,737,690       15,774,831       2.7 %
        Revolving Credit Facility (10.50%)(7)   12/28/2017     -       -       1,811       0.0 %
                  15,737,690       15,737,690       15,776,642          
                                             
The Plastics Group Acquisition Corp (11)   Chemicals, Plastics and Rubber   Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)   2/28/2019     20,786,889       20,786,889       20,786,889       3.5 %
        Delayed Draw Term Loan (11.00% Cash, 2.00% PIK)(7)   2/28/2019     -       -       -       0.0 %
                  20,786,889       20,786,889       20,786,889          
                                             
Prestige Industries LLC   Business Services   Senior Secured Second Lien Term Loan (10.00% Cash, 3.00% PIK)   1/31/2017     6,121,826       6,020,791       5,684,483       1.0 %
        Warrants to purchase 0.63% of the outstanding common units   1/31/2017     -       151,855       -       0.0 %
                  6,121,826       6,172,646       5,684,483          
                                             
Prince Mineral Holding Corp.(8)   Mining, Steel, Iron and Nonprecious Metals   Senior Secured Note (11.50%)   12/15/2019     6,800,000       6,730,578       7,440,696       1.3 %
                  6,800,000       6,730,578       7,440,696          
                                             
RCS Management Corporation & Specialized Medical Services, Inc.   Diversified/Conglomerate Service   Senior Secured Second Lien Term Loan ( LIBOR + 11.00% Cash, 1.50% LIBOR Floor, 0.50% PIK)   4/30/2015     25,539,187       25,539,187       25,539,187       4.3 %
                  25,539,187       25,539,187       25,539,187          
                                             
Red Skye Wireless LLC (11)(14)   Retail Stores   Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 2.00% PIK, 1.00% LIBOR Floor)   6/27/2017     14,102,580       14,102,580       14,290,001       2.4 %
                  14,102,580       14,102,580       14,290,001          
                                             
Reddy Ice Corporation   Beverage, Food and Tobacco   Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)   10/1/2019     17,000,000       17,000,000       16,638,070       2.8 %
                  17,000,000       17,000,000       16,638,070          
                                             
Response Team Holdings LLC (11)   Buildings and Real Estate   Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 2.00% LIBOR Floor)   3/28/2019     18,518,519       18,518,519       18,518,519       3.2 %
        Preferred Equity (12.00% PIK)   3/28/2019     4,635,802       4,206,790       4,206,203       0.7 %
        Warrants to purchase 6.17% of the outstanding common units   3/28/2019     -       429,012       429,012          
                  23,154,321       23,154,321       23,153,734          
                                             
Revstone Aero LLC (9)   Aerospace & Defense   Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 3.00% PIK)   11/1/2013     13,254,593       13,119,082       13,254,858       2.3 %
        Fee Note   11/1/2013     500,000       296,948       500,000       0.1 %
                  13,754,593       13,416,030       13,754,858          
                                             
Sendero Drilling Company LLC (11) (14)   Oil and Gas   Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)   3/18/2019     17,255,000       16,465,896       16,111,702       2.7 %
        Warrants to purchase 5.52% of the outstanding common units   3/18/2019     -       793,523       793,523       0.1 %
                  17,255,000       17,259,419       16,905,225          
                                             
SESAC HOLDCO II   Business Services   Senior Secured Second Lien Term Loan (LIBOR + 8.75%, 1.25% LIBOR Floor)   7/12/2019     3,500,000       3,495,105       3,591,595       0.6 %
                  3,500,000       3,495,105       3,591,595          
                                             
Sizzling Platter, LLC(8)   Restaurant & Franchise   Senior Secured Note (12.25% )   4/15/2016     10,867,000       11,021,884       11,532,604       2.0 %
                  10,867,000       11,021,884       11,532,604          
                                             
T. Residential Holdings LLC   Buildings and Real Estate   Senior Secured First Lien Term Loan (12.00%)   3/28/2019     20,000,000       20,000,000       20,000,000       3.4 %
                  20,000,000       20,000,000       20,000,000          

 

F-7
 

Taylored Freight Services LLC   Business Services   Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 2.00% PIK, 1.50% LIBOR Floor)   11/1/2017     14,382,821       14,382,821       12,843,859       2.2 %
                  14,382,821       14,382,821       12,843,859          
                                             
Tempel Steel Company(8)   Mining, Steel, Iron and Nonprecious Metals   Senior Secured Note (12.00%)   8/15/2016     12,000,000       11,853,555       11,694,120       2.0 %
                  12,000,000       11,853,555       11,694,120          
                                             
Tenere Acquisition Corp.(11)(14)   Diversified/Conglomerate Manufacturing   Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)   12/15/2017     11,020,104       11,020,104       11,446,122       2.0 %
                  11,020,104       11,020,104       11,446,122          
                                             
The Great Atlantic & Pacific Tea Company, Inc.   Grocery   Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 2.00% LIBOR Floor)   3/13/2017     7,829,779       7,829,779       8,006,263       1.4 %
                  7,829,779       7,829,779       8,006,263          
                                             
Transtelco Inc.   Telecommunications   Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor)   11/19/2017     19,152,000       19,152,000       19,376,270       3.3 %
                  19,152,000       19,152,000       19,376,270          
                                             
Travelclick, Inc.   Hotels, Motels, Inns and Gaming   Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.25% LIBOR Floor)   3/26/2018     15,000,000       15,000,000       15,300,000       2.6 %
                  15,000,000       15,000,000       15,300,000          
                                             
U.S. Well Services LLC (10)   Oil and Gas   Senior Secured Note (14.50%)   2/15/2017     23,558,808       23,427,943       23,754,111       4.0 %
        Warrants to purchase 3.48% of the outstanding common membership interests   2/15/2017     -       11,370       637,360       0.1 %
                  23,558,808       23,439,313       24,391,471          
                                             
UELS LLC   Oil and Gas   Senior Secured Second Lien Term Loan (LIBOR + 10.50% Cash, 1.50% LIBOR Floor)   12/5/2018     20,430,000       20,430,000       20,430,000       3.5 %
                  20,430,000       20,430,000       20,430,000          
                                             
United Road Towing Inc. (16)   Personal, Food and Miscellaneous Services   Senior Secured Second Lien Term Loan
(10.00% Cash, 5.00% PIK)
  6/30/2014     22,880,003       22,461,563       20,235,989       3.4 %
                  22,880,003       22,461,563       20,235,989          
                                             
Water Capital USA, Inc.   Finance   Senior Secured First Lien Term Loan (7.00% Cash, 7.00% PIK)   1/3/2015     26,043,797       26,043,797       25,053,936       4.3 %
                  26,043,797       26,043,797       25,053,936          
                                             
Wheels Up Partners LLC (11) (13)   Aerospace & Defense   Senior Secured First Lien Delayed Draw (LIBOR + 8.55% Cash, 1.00% LIBOR Floor)   4/15/2021     10,754,000       10,754,000       10,754,000       1.8 %
                  10,754,000       10,754,000       10,754,000          
                                             
Subtotal Non-Controlled / Non-Affiliated Investments            $  968,646,456 $  964,610,713 $ 949,196,688          
                                             
Affiliated Investments:                                            
                                             
Cymax Stores, Inc.(10)   Home and Office Furnishings, Housewares, and Durable Consumer Products   Senior Secured First Lien Term Loan (10.00% Cash, 5.00% PIK)   8/1/2015     9,235,421       8,926,085       8,764,599       1.5 %
        190 Class B Common Units (5)         -       678,154       1,040,250       0.2 %
                                             
Subtotal Affiliated Investments               $ 9,235,421     $ 9,604,239     $ 9,804,849          
                                             
Total Investments, March 31, 2014               $ 977,881,877     $ 974,214,952     $ 959,001,537       163.3 %

 

 

(1)All of our investments are domiciled in the United States except for Cymax Stores, Inc. which is domiciled in Canada and denominated in USD.
(2)Par amount includes accumulated PIK interest and is net of repayments.
(3)Percentage is based on net assets of $587,239,882 as of March 31, 2014.
(4)Investment is held via participation agreements with affiliated entities (See note 7).
(5)190 Class B Common Units represent 19% ownership of Cymax Stores, Inc.
(6)Fee note is a zero coupon note, due at the earlier of prepayment or maturity and stated interest rate represents an effective interest rate.
(7)The entire commitment was unfunded at March 31, 2014. As such, no interest is being earned on this investment.
(8)Securities are exempt from registration under Rule 144a of the Securities Act of 1933. These securities represent a fair value of $54.5 million and 9.3% of net assets as of March 31, 2014 and are considered restricted.
(9)The term loan matured by its term on November 1, 2013. The Company continues to make current interest payments.
(10)The investment is not a qualifying asset under the Investment Company Act of 1940, as amended.
(11)The investment has an unfunded commitment as of March 31, 2014 (See note 8).
(12)The investment was on non-accrual status as of March 31, 2014.
(13)A portion of this investment was sold via a participation agreement (See note 3).
(14)Includes an analysis of the value of any unfunded loan commitments.

(15)Gross unrealized appreciation, gross unrealized depreciation, and net appreciation for federal income tax purposes totaled $23.8 million, $23.3 million and $0.5 million, respectively. The tax cost of investments is $957.9 million.
(16)A portion of this investment was participated to a third party with a par value of $1.3 million and a fair value of $1.2 million. Such amount has been presented as gross basis in accordance with US GAAP (See note 3).

 

See accompanying notes to consolidated financial statements.

 

F-8
 

 

Medley Capital Corporation

 

Consolidated Schedule of Investments

 

September 30, 2013

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost   Fair Value   % of
Net Assets (3)
 
                          
Non-Controlled/ Non-Affiliated Investments:                          
                              
Accupac, Inc.  Containers, Packaging and Glass  Senior Secured Second Lien Term Loan (12.29%)  11/10/2018   12,000,000    12,000,000    12,000,000    2.4%
             12,000,000    12,000,000    12,000,000      
                              
Aderant North America, Inc.  Electronics  Senior Secured Second Lien Term Loan (LIBOR + 8.75% , 1.25% LIBOR Floor)  6/20/2019   4,550,000    4,550,000    4,550,000    0.9%
             4,550,000    4,550,000    4,550,000      
                              
Alora Pharmaceuticals LLC(13)  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)  9/13/2018   14,000,000    14,000,000    14,000,000    2.7%
             14,000,000    14,000,000    14,000,000      
                              
American Apparel, Inc.(8)  Retail Stores  Senior Secured Note (13.00%)  4/15/2020   13,000,000    12,626,748    13,259,927    2.6%
             13,000,000    12,626,748    13,259,927      
                              
American Gaming Systems LLC(13)  Hotels, Motels, Inns and Gaming  Senior Secured First Lien Term Loan (LIBOR + 10.00% , 1.50% LIBOR Floor)  8/15/2016   10,750,000    10,750,000    10,848,660    2.1%
             10,750,000    10,750,000    10,848,660      
                              
Amerit Fleet Services, Inc. (12)  Business Services  Senior Secured Second Lien Term Loan
(LIBOR + 9.70% Cash, 1.00% LIBOR Floor, 1.50% PIK)
  12/21/2016   8,906,159    8,906,159    8,870,534    1.7%
             8,906,159    8,906,159    8,870,534      
                              
ARBOC Specialty Vehicles LLC  Automobile  Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor)  3/21/2018   24,687,500    24,687,500    24,647,996    4.8%
             24,687,500    24,687,500    24,647,996      
                              
Aurora Flight Sciences Corporation  Aerospace & Defense  Senior Secured Second Lien Term Loan
(11.25% Cash, 2.00% PIK)
  3/16/2014   15,807,836    15,807,836    15,863,600    3.1%
             15,807,836    15,807,836    15,863,600      
                              
BayDelta Maritime LLC  Cargo Transport  Senior Secured First Lien Term Loan (11.25% Cash, 2.50% Deferred)  6/30/2016   6,669,292    6,573,846    6,680,885    1.3%
      Fee Note (14.88%)(6)  6/30/2016   250,000    170,717    170,717    0.0%
      Warrants to purchase 10% of the outstanding equity  6/30/2016   -    25,000    594,346    0.1%
             6,919,292    6,769,563    7,445,948      
                              
Brantley Transportation LLC(13)  Oil and Gas  Senior Secured First Lien Term Loan (12.00%)  8/2/2017   10,162,500    10,346,975    10,162,500    2.0%
             10,162,500    10,346,975    10,162,500      
                              
Calloway Laboratories, Inc.  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan (12.00% PIK)  9/30/2014   24,869,263    24,388,179    19,666,360    3.9%
      Warrants to purchase 15.00% of the outstanding equity  9/30/2014   -    68,433    -    0.0%
             24,869,263    24,456,612    19,666,360      
                              
Caregiver Services, Inc.  Healthcare, Education and Childcare  Senior Secured Second Lien Term Loan (12.45% Cash, 2.00% PIK)  12/29/2017   15,361,486    15,361,486    15,361,486    3.0%
             15,361,486    15,361,486    15,361,486      
                              
Cenegenics LLC(13)  Personal, Food and Miscellaneous Services  Senior Secured First Lien Term Loan (10.00% Cash, 2.25% PIK)  12/20/2017   19,414,099    19,414,099    19,899,452    3.9%
             19,414,099    19,414,099    19,899,452      
                              
Dispensing Dynamics International(8)  Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured Note (12.50%)  1/1/2018   4,800,000    4,714,770    4,825,840    0.9%
             4,800,000    4,714,770    4,825,840      
                              
DLR Restaurants LLC (10) (13)  Restaurant & Franchise  Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)  4/18/2018   9,683,644    9,683,644    9,683,644    1.9%
      Unsecured Debt (12.00% Cash, 4.00% PIK)  4/18/2018   254,645    254,645    254,645    0.0%
             9,938,289    9,938,289    9,938,289      
                              
DreamFinders Homes LLC (10)  Buildings and Real Estate  Senior Secured First Lien Term Loan A (LIBOR + 10.00% Cash)  4/30/2014   10,000,000    10,000,000    10,000,000    2.0%
      Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)  9/13/2018   7,277,199    7,098,472    7,098,472    1.4%
      Warrants to purchase 5% of outstanding equity  9/13/2018   -    180,000    180,000    0.0%
             17,277,199    17,278,472    17,278,472      
                              
Exide Technologies (9)  Machinery (Nonagriculture, Nonconstruction, Nonelectric)  Senior Secured Note (8.63%)  2/1/2018   11,000,000    9,006,908    8,002,435    1.6%
             11,000,000    9,006,908    8,002,435      
                              
FC Operating LLC  Retail Stores  Senior Secured First Lien Term Loan (LIBOR + 10.75% Cash, 1.25% LIBOR Floor)  11/14/2017   10,925,000    10,925,000    10,860,657    2.1%
             10,925,000    10,925,000    10,860,657      
                              
Geneva Wood Fuels LLC (4) (11)  Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured First Lien Term Loan (4.50% Cash, 10.50% PIK)  12/31/2014   8,199,184    8,143,385    4,090,000    0.8%
             8,199,184    8,143,385    4,090,000      
                              
Harrison Gypsum LLC(13)  Mining, Steel, Iron and Nonprecious Metals  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)  12/21/2017   23,885,299    23,885,299    23,885,299    4.7%
             23,885,299    23,885,299    23,885,299      

 

F-9
 

 

HD Vest, Inc.  Finance  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.25% LIBOR Floor)  6/18/2019   8,750,000    8,750,000    8,750,000    1.7%
             8,750,000    8,750,000    8,750,000      
                              
Help/Systems LLC  Business Services  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)  6/28/2020   15,000,000    15,000,000    15,000,000    3.0%
             15,000,000    15,000,000    15,000,000      
                              
HGDS Acquisition LLC  Business Services  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 3.50% PIK)  3/28/2018   13,066,264    13,066,264    13,000,932    2.6%
             13,066,264    13,066,264    13,000,932      
                              
Hoffmaster Group, Inc.  Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured Second Lien Term Loan
(LIBOR + 9.50% Cash, 1.50% LIBOR Floor)
  1/3/2019   6,000,000    6,000,000    5,951,856    1.2%
      Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.25% LIBOR Floor)  1/3/2019   2,000,000    1,983,005    1,926,637    0.4%
             8,000,000    7,983,005    7,878,493      
                              
Ingenio Acquisition LLC  Personal, Food and Miscellaneous Services  Senior Secured First Lien Term Loan (12.75%)  5/9/2018   25,000,000    25,000,000    25,000,000    4.9%
             25,000,000    25,000,000    25,000,000      
                              
Insight Pharmaceuticals LLC  Personal, Food and Miscellaneous Services  Senior Secured Second Lien Term Loan (LIBOR + 11.75%, 1.50% LIBOR Floor)  8/25/2017   7,724,138    7,724,138    7,748,867    1.5%
             7,724,138    7,724,138    7,748,867      
                              
Integra Telecom  Telecommunications  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.25% LIBOR Floor)  2/22/2020   12,132,000    12,158,115    12,329,145    2.4%
             12,132,000    12,158,115    12,329,145      
                              
Interface Security Systems (8)  Electronics  Senior Secured Note (9.25%)  1/15/2018   3,333,000    3,333,000    3,427,030    0.7%
             3,333,000    3,333,000    3,427,030      
                              
JD Norman Industries, Inc.  Diversified/Conglomerate Manufacturing  Senior Secured Second Lien Term Loan (13.50%)  1/28/2019   12,500,000    12,500,000    12,500,000    2.5%
             12,500,000    12,500,000    12,500,000      
                              
Lexmark Carpet Mills, Inc.  Home and Office Furnishings, Housewares, and Durable Consumer Products  Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor, 2.50% LIBOR Cap)  9/30/2018   31,000,000    31,000,000    31,000,000    6.1%
             31,000,000    31,000,000    31,000,000      
                              
Linc Energy Finance (USA), Inc.(8)  Oil and Gas  Senior Secured Note (12.50%)  10/31/2017   3,500,000    3,392,153    3,823,750    0.7%
             3,500,000    3,392,153    3,823,750      
                              
Lydell Jewelry Design Studio LLC (10)(13)  Personal and Nondurable Consumer Products (Manufacturing Only)  Senior Secured First Lien Term Loan (LIBOR + 10.50%, 1.50% LIBOR Floor)  9/13/2018   13,072,000    13,072,000    13,072,000    2.6%
      Revolver (LIBOR + 10.50%, 1.50% LIBOR Floor)  9/13/2018   2,250,000    2,250,000    2,250,000    0.4%
      Warrants to purchase 17.5% of the outstanding membership units  9/13/2018   -    -    -    0.0%
             15,322,000    15,322,000    15,322,000      
                              
Meridian Behavioral Health LLC  Healthcare, Education and Childcare  Senior Secured First Lien Term Loan A (14.00% )  11/14/2016   10,289,141    9,902,304    10,289,141    2.0%
      Senior Secured First Lien Term Loan B (14.00%)  11/14/2016   3,750,000    3,750,000    3,750,000    0.7%
      Warrants to purchase 8% of the outstanding equity  11/14/2016   -    536,296    1,071,347    0.2%
             14,039,141    14,188,600    15,110,488      
                              
Modern VideoFilm, Inc.  Leisure, Amusement, Motion Pictures, Entertainment  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 3.00% PIK, 1.50% LIBOR Floor)  9/25/2017   11,868,109    11,583,071    9,791,187    1.9%
      Warrants to purchase 4.5% of the outstanding equity  9/25/2017   -    339,573    -    0.0%
             11,868,109    11,922,644    9,791,187      
                              
NCM Demolition and Remediation LP  Buildings and Real Estate  Senior Secured First Lien Term Loan (LIBOR + 11.50%, 1.00% LIBOR Floor)  8/29/2018   19,291,000    19,291,000    19,291,000    3.8%
             19,291,000    19,291,000    19,291,000      
                              
Physicians Care Alliance LLC (10) (13)  Personal and Nondurable Consumer
Products (Manufacturing Only)
  Senior Secured First Lien Term Loan (10.00% Cash, 1.00% PIK)  12/28/2017   15,854,027    15,854,027    15,900,559    3.1%
      Revolving Credit Facility (10.50%)(7)  12/28/2017   -    -    -    0.0%
             15,854,027    15,854,027    15,900,559      
                              
Prestige Industries LLC  Business Services  Senior Secured Second Lien Term Loan (10.00% Cash, 3.00% PIK)  1/31/2017   6,029,795    5,914,778    5,506,459    1.1%
      Warrants to purchase 0.63% of the outstanding common units  1/31/2017   -    151,855    -    0.0%
             6,029,795    6,066,633    5,506,459      
                              
Prince Mineral Holdings Corp.(8)  Mining, Steel, Iron and Nonprecious Metals  Senior Secured Note (11.50%)  12/15/2019   6,800,000    6,726,424    7,242,000    1.4%
             6,800,000    6,726,424    7,242,000      
                              
RCS Management Corporation & Specialized Medical Services, Inc.  Diversified/Conglomerate Service  Senior Secured Second Lien Term Loan ( LIBOR + 11.00% Cash, 0.50% PIK, 1.50% LIBOR Floor)  9/23/2015   25,474,725    25,474,725    25,336,272    5.0%
             25,474,725    25,474,725    25,336,272      
                              
Red Skye Wireless LLC (10)  Retail Stores  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 2.00% PIK, 1.00% LIBOR Floor)  6/27/2017   15,080,145    15,080,145    15,075,802    3.0%
             15,080,145    15,080,145    15,075,802      
                              
Reddy Ice Corporation  Beverage, Food and Tobacco  Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)  10/1/2019   17,000,000    17,000,000    16,863,027    3.3%
             17,000,000    17,000,000    16,863,027      
                              
Revstone Aero LLC  Aerospace & Defense  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 3.00% PIK)  11/1/2013   13,203,903    13,051,823    13,203,780    2.6%
      Fee Note  11/1/2013   500,000    274,147    500,000    0.1%
             13,703,903    13,325,970    13,703,780      

 

F-10
 

 

SESAC HOLDCO II  Business Services  Senior Secured Second Lien Term Loan (LIBOR + 8.75%, 1.25% LIBOR Floor)  7/12/2019   3,500,000    3,494,828    3,561,527    0.7%
             3,500,000    3,494,828    3,561,527      
                              
Sizzling Platter LLC(8)  Restaurant & Franchise  Senior Secured Note (12.25% )  4/15/2016   10,867,000    11,066,638    11,500,444    2.3%
             10,867,000    11,066,638    11,500,444      
                              
Taylored Freight Services LLC  Business Services&nb