Attached files
| file | filename |
|---|---|
| EX-31.2 - EXHIBIT 31.2 - PROSPECT CAPITAL CORP | psec10-qq22015ex312.htm |
| EX-32.1 - EXHIBIT 32.1 - PROSPECT CAPITAL CORP | psec10-qq22015ex321.htm |
| EX-32.2 - EXHIBIT 32.2 - PROSPECT CAPITAL CORP | psec10-qq22015ex322.htm |
| EX-31.1 - EXHIBIT 31.1 - PROSPECT CAPITAL CORP | psec10-qq22015ex311.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended December 31, 2014 OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number: 814-00659
PROSPECT CAPITAL CORPORATION
(Exact name of Registrant as specified in its charter)
Maryland | 43-2048643 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
10 East 40th Street, 42nd Floor | |
New York, New York | 10016 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (212) 448-0702 | |
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes o No o
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 the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) | |||
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.
Class of Common Stock | Outstanding at February 3, 2015 | |
$0.001 par value | 358,401,659 | |
PROSPECT CAPITAL CORPORATION
Table of Contents
Page | ||
PART I | FINANCIAL INFORMATION | |
PART II | OTHER INFORMATION | |
FORWARD-LOOKING STATEMENTS
This report contains information that may constitute "forward-looking statements." Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to volume growth, share of sales and earnings per share growth, and statements expressing general views about future operating results—are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part II, "Item 1A. Risk Factors" and elsewhere in this report and in our Annual Report on Form 10-K for the year ended June 30, 2014, and those described from time to time in our future reports filed with the Securities and Exchange Commission.
1
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share and per share data)
December 31, 2014 | June 30, 2014 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Investments at fair value: | |||||||
Control investments (amortized cost of $1,714,686 and $1,719,242, respectively) | $ | 1,723,749 | $ | 1,640,454 | |||
Affiliate investments (amortized cost of $45,788 and $31,829, respectively) | 46,106 | 32,121 | |||||
Non-control/non-affiliate investments (amortized cost of $4,740,729 and $4,620,451, respectively) | 4,753,868 | 4,581,164 | |||||
Total investments at fair value (amortized cost of $6,501,203 and $6,371,522, respectively) | 6,523,723 | 6,253,739 | |||||
Cash and cash equivalents | 106,481 | 134,225 | |||||
Receivables for: | |||||||
Interest, net | 19,694 | 21,997 | |||||
Other | 2,752 | 2,587 | |||||
Prepaid expenses | 929 | 2,828 | |||||
Deferred financing costs | 62,838 | 61,893 | |||||
Total Assets | 6,716,417 | 6,477,269 | |||||
Liabilities | |||||||
Revolving Credit Facility (Notes 4 and 8) | 177,700 | 92,000 | |||||
Convertible Notes (Notes 5 and 8) | 1,247,500 | 1,247,500 | |||||
Public Notes (Notes 6 and 8) | 647,998 | 647,881 | |||||
Prospect Capital InterNotes® (Notes 7 and 8) | 785,317 | 785,670 | |||||
Dividends payable | 39,622 | 37,843 | |||||
Due to Prospect Administration (Note 13) | 4,018 | 2,208 | |||||
Due to Prospect Capital Management (Note 13) | 56,936 | 3 | |||||
Accrued expenses | 4,461 | 4,790 | |||||
Interest payable | 40,775 | 37,459 | |||||
Other liabilities | 3,013 | 3,733 | |||||
Total Liabilities | 3,007,340 | 2,859,087 | |||||
Net Assets | $ | 3,709,077 | $ | 3,618,182 | |||
Components of Net Assets | |||||||
Common stock, par value $0.001 per share (1,000,000,000 common shares authorized; 358,250,121 and 342,626,637 issued and outstanding, respectively) (Note 9) | $ | 358 | $ | 343 | |||
Paid-in capital in excess of par (Note 9) | 3,965,966 | 3,814,634 | |||||
(Distributions in excess of net investment income)/Undistributed net investment income | (8,891 | ) | 42,086 | ||||
Accumulated realized losses | (270,876 | ) | (121,098 | ) | |||
Unrealized appreciation (depreciation) on investments | 22,520 | (117,783 | ) | ||||
Net Assets | $ | 3,709,077 | $ | 3,618,182 | |||
Net Asset Value Per Share (Note 16) | $ | 10.35 | $ | 10.56 | |||
See notes to consolidated financial statements.
2
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Investment Income | |||||||||||||||
Interest income: | |||||||||||||||
Control investments | $ | 50,684 | $ | 37,086 | $ | 95,812 | $ | 69,719 | |||||||
Affiliate investments | 1,004 | 1,399 | 1,841 | 2,895 | |||||||||||
Non-control/non-affiliate investments | 97,331 | 79,420 | 196,109 | 157,532 | |||||||||||
CLO fund securities | 39,795 | 29,198 | 79,192 | 55,378 | |||||||||||
Total interest income | 188,814 | 147,103 | 372,954 | 285,524 | |||||||||||
Dividend income: | |||||||||||||||
Control investments | 2,651 | 8,877 | 3,410 | 15,952 | |||||||||||
Affiliate investments | (651 | ) | — | 778 | — | ||||||||||
Non-control/non-affiliate investments | — | 9 | 22 | 12 | |||||||||||
Money market funds | 11 | 6 | 26 | 17 | |||||||||||
Total dividend income | 2,011 | 8,892 | 4,236 | 15,981 | |||||||||||
Other income: | |||||||||||||||
Control investments | 3,069 | 17,928 | 8,732 | 27,149 | |||||||||||
Affiliate investments | — | 5 | 226 | 7 | |||||||||||
Non-control/non-affiliate investments | 4,989 | 4,162 | 14,756 | 10,463 | |||||||||||
Total other income (Note 10) | 8,058 | 22,095 | 23,714 | 37,619 | |||||||||||
Total Investment Income | 198,883 | 178,090 | 400,904 | 339,124 | |||||||||||
Operating Expenses | |||||||||||||||
Investment advisory fees: | |||||||||||||||
Base management fee (Note 13) | 34,034 | 25,075 | 67,199 | 48,120 | |||||||||||
Income incentive fee (Note 13) | 22,831 | 23,054 | 46,447 | 43,638 | |||||||||||
Total investment advisory fees | 56,865 | 48,129 | 113,646 | 91,758 | |||||||||||
Interest and credit facility expenses | 42,244 | 29,256 | 85,158 | 56,663 | |||||||||||
Legal fees | 395 | (42 | ) | 1,558 | 177 | ||||||||||
Valuation services | 459 | 449 | 909 | 888 | |||||||||||
Audit, compliance and tax related fees | 924 | 745 | 1,591 | 1,368 | |||||||||||
Allocation of overhead from Prospect Administration (Note 13) | 3,014 | 3,986 | 5,430 | 7,972 | |||||||||||
Insurance expense | 121 | 90 | 252 | 183 | |||||||||||
Directors’ fees | 94 | 75 | 188 | 150 | |||||||||||
Excise tax | 1,775 | 1,000 | 1,775 | 2,000 | |||||||||||
Other general and administrative expenses | 1,667 | 2,187 | 4,609 | 3,413 | |||||||||||
Total Operating Expenses | 107,558 | 85,875 | 215,116 | 164,572 | |||||||||||
Net Investment Income | 91,325 | 92,215 | 185,788 | 174,552 | |||||||||||
Net realized loss | (133,102 | ) | (5,671 | ) | (156,013 | ) | (1,882 | ) | |||||||
Net change in unrealized appreciation (depreciation) on investments | 127,747 | (1,182 | ) | 140,303 | (7,408 | ) | |||||||||
Net Increase in Net Assets Resulting from Operations | $ | 85,970 | $ | 85,362 | $ | 170,078 | $ | 165,262 | |||||||
Net increase in net assets resulting from operations per share | $ | 0.24 | $ | 0.30 | $ | 0.49 | $ | 0.61 | |||||||
Dividends declared per share | $ | (0.33 | ) | $ | (0.33 | ) | $ | (0.66 | ) | $ | (0.66 | ) | |||
See notes to consolidated financial statements.
3
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(in thousands, except share data)
(Unaudited)
Six Months Ended December 31, | |||||||
2014 | 2013 | ||||||
Operations | |||||||
Net investment income | $ | 185,788 | $ | 174,552 | |||
Net realized loss | (156,013 | ) | (1,882 | ) | |||
Net change in unrealized appreciation (depreciation) on investments | 140,303 | (7,408 | ) | ||||
Net Increase in Net Assets Resulting from Operations | 170,078 | 165,262 | |||||
Distributions to Shareholders | |||||||
Distribution from net investment income | (232,449 | ) | (183,315 | ) | |||
Distribution of return of capital | — | — | |||||
Net Decrease in Net Assets Resulting from Distributions to Shareholders | (232,449 | ) | (183,315 | ) | |||
Common Stock Transactions | |||||||
Issuance of common stock, net of underwriting costs | 146,085 | 563,578 | |||||
Less: Offering costs from issuance of common stock | (488 | ) | (1,019 | ) | |||
Value of shares issued to acquire controlled investments | — | 21,006 | |||||
Value of shares issued through reinvestment of dividends | 7,669 | 9,093 | |||||
Net Increase in Net Assets Resulting from Common Stock Transactions | 153,266 | 592,658 | |||||
Total Increase in Net Assets | 90,895 | 574,605 | |||||
Net assets at beginning of period | 3,618,182 | 2,656,494 | |||||
Net Assets at End of Period | $ | 3,709,077 | $ | 3,231,099 | |||
Common Stock Activity | |||||||
Shares sold | 14,845,556 | 50,700,067 | |||||
Shares issued to acquire controlled investments | — | 1,918,342 | |||||
Shares issued through reinvestment of dividends | 777,928 | 804,062 | |||||
Total shares issued due to common stock activity | 15,623,484 | 53,422,471 | |||||
Shares issued and outstanding at beginning of period | 342,626,637 | 247,836,965 | |||||
Shares Issued and Outstanding at End of Period | 358,250,121 | 301,259,436 | |||||
See notes to consolidated financial statements.
4
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share data)
(Unaudited)
Six Months Ended December 31, | |||||||
2014 | 2013 | ||||||
Operating Activities | |||||||
Net increase in net assets resulting from operations | $ | 170,078 | $ | 165,262 | |||
Net realized loss | 156,013 | 1,882 | |||||
Net change in unrealized (appreciation) depreciation on investments | (140,303 | ) | 7,408 | ||||
Amortization of discounts and premiums, net | 37,332 | 23,133 | |||||
Accretion of discount on Public Notes (Note 6) | 117 | 88 | |||||
Amortization of deferred financing costs | 6,688 | 4,998 | |||||
Payment-in-kind interest | (10,287 | ) | (9,845 | ) | |||
Structuring fees | (15,081 | ) | (15,533 | ) | |||
Change in operating assets and liabilities: | |||||||
Payments for purchases of investments | (1,384,542 | ) | (1,118,612 | ) | |||
Proceeds from sale of investments and collection of investment principal | 1,086,884 | 419,405 | |||||
Decrease in interest receivable, net | 2,303 | 8,679 | |||||
(Increase) decrease in other receivables | (165 | ) | 2,330 | ||||
Decrease in prepaid expenses | 1,899 | 263 | |||||
Increase in due to broker | — | 1,238 | |||||
Increase in due to Prospect Administration | 1,810 | 375 | |||||
Increase in due to Prospect Capital Management | 56,933 | 42,784 | |||||
(Decrease) increase in accrued expenses | (329 | ) | 1,279 | ||||
Increase in interest payable | 3,316 | 2,369 | |||||
(Decrease) increase in other liabilities | (720 | ) | 4,006 | ||||
Net Cash Used in Operating Activities | (28,054 | ) | (458,491 | ) | |||
Financing Activities | |||||||
Borrowings under Revolving Credit Facility (Note 4) | 839,000 | 96,000 | |||||
Principal payments under Revolving Credit Facility (Note 4) | (753,300 | ) | (220,000 | ) | |||
Issuance of Prospect Capital InterNotes® (Note 7) | 21,789 | 238,780 | |||||
Redemptions of Prospect Capital InterNotes® (Note 7) | (22,142 | ) | (1,650 | ) | |||
Financing costs paid and deferred | (7,633 | ) | (6,139 | ) | |||
Proceeds from issuance of common stock, net of underwriting costs | 146,085 | 563,578 | |||||
Offering costs from issuance of common stock | (488 | ) | (1,019 | ) | |||
Dividends paid | (223,001 | ) | (168,291 | ) | |||
Net Cash Provided by Financing Activities | 310 | 501,259 | |||||
Total (Decrease) Increase in Cash and Cash Equivalents | (27,744 | ) | 42,768 | ||||
Cash and cash equivalents at beginning of period | 134,225 | 203,236 | |||||
Cash and Cash Equivalents at End of Period | $ | 106,481 | $ | 246,004 | |||
Supplemental Disclosures | |||||||
Cash paid for interest | $ | 75,037 | $ | 47,226 | |||
Non-Cash Financing Activities | |||||||
Value of shares issued through reinvestment of dividends | $ | 7,669 | $ | 9,093 | |||
Value of shares issued to acquire controlled investments | $ | — | $ | 21,006 | |||
See notes to consolidated financial statements.
5
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS
(in thousands, except share data)
December 31, 2014 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(47) | ||||||||||||
American Property REIT Corp.(32) | Various / Real Estate | Senior Term Loan (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 5.50% PIK, due 4/1/2019)(4) | $ | 105,958 | $ | 105,958 | $ | 105,958 | 2.9% | |||
Common Stock (272,116 shares) | 24,769 | 30,692 | 0.8% | |||||||||
130,727 | 136,650 | 3.7% | ||||||||||
Arctic Energy Services, LLC(30) | Wyoming / Oil & Gas Production | Senior Secured Term Loan (12.00% (LIBOR + 9.00% with 3.00% LIBOR floor), due 5/5/2019)(3)(4) | 31,640 | 31,640 | 31,640 | 0.9% | ||||||
Senior Subordinated Term Loan (14.00% (LIBOR + 11.00% with 3.00% LIBOR floor), due 5/5/2019)(3)(4) | 20,230 | 20,230 | 20,230 | 0.5% | ||||||||
Class A Units (700 units) | 9,006 | 9,774 | 0.3% | |||||||||
60,876 | 61,644 | 1.7% | ||||||||||
CCPI Inc.(33) | Ohio / Manufacturing | Senior Secured Term Loan A (10.00%, due 12/31/2017)(3) | 16,988 | 16,988 | 16,988 | 0.5% | ||||||
Senior Secured Term Loan B (12.00% plus 7.00% PIK, due 12/31/2017) | 8,539 | 8,539 | 8,539 | 0.2% | ||||||||
Common Stock (14,857 shares) | 8,553 | 8,011 | 0.2% | |||||||||
34,080 | 33,538 | 0.9% | ||||||||||
CP Energy Services Inc.(38) | Oklahoma / Oil & Gas Production | Senior Secured Term Loan A to CP Well Testing, LLC (7.00% (LIBOR + 5.00% with 2.00% LIBOR floor), due 4/1/2019)(4) | 11,035 | 11,035 | 11,035 | 0.3% | ||||||
Senior Secured Term Loan B to CP Well Testing, LLC (10.00% (LIBOR + 8.00% with 2.00% LIBOR floor) plus 7.50% PIK, due 4/1/2019)(3)(4) | 72,238 | 72,238 | 72,238 | 1.9% | ||||||||
Second Lien Term Loan to CP Well Testing, LLC (9.00% (LIBOR + 7.00% with 2.00% LIBOR floor) plus 9.00% PIK, due 4/1/2019)(4) | 15,000 | 15,000 | 15,000 | 0.4% | ||||||||
Common Stock (2,924 shares) | 15,227 | 20,499 | 0.6% | |||||||||
113,500 | 118,772 | 3.2% | ||||||||||
Credit Central Loan Company, LLC(34) | Ohio / Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2019)(22) | 36,333 | 36,333 | 36,333 | 1.0% | ||||||
Class A Shares (7,500,000 shares)(22) | 11,473 | 12,637 | 0.3% | |||||||||
47,806 | 48,970 | 1.3% | ||||||||||
Echelon Aviation LLC | New York / Aerospace & Defense | Senior Secured Term Loan (11.75% (LIBOR + 9.75% with 2.00% LIBOR floor) plus 2.25% PIK, due 3/31/2022)(4) | 40,808 | 40,808 | 40,808 | 1.1% | ||||||
Class A Shares (11,335,318 shares) | 19,907 | 16,632 | 0.4% | |||||||||
60,715 | 57,440 | 1.5% | ||||||||||
First Tower Finance Company LLC(29) | Mississippi / Consumer Finance | Subordinated Term Loan to First Tower, LLC (10.00% plus 12.00% PIK, due 6/24/2019)(22) | 251,246 | 251,246 | 251,246 | 6.8% | ||||||
Class A Shares (83,729,323 shares)(22) | 65,957 | 82,038 | 2.2% | |||||||||
317,203 | 333,284 | 9.0% | ||||||||||
Freedom Marine Solutions, LLC(8) | Louisiana / Energy | Senior Secured Note to Vessel Company, LLC (18.00%, due 12/12/2016) | 3,500 | 3,500 | 3,500 | 0.1% | ||||||
Senior Secured Note to Vessel Company II, LLC (13.00%, due 11/25/2018) | 13,000 | 12,504 | 9,499 | 0.3% | ||||||||
Senior Secured Note to Vessel Company III, LLC (13.00%, due 12/3/2018) | 16,000 | 16,000 | 11,889 | 0.3% | ||||||||
Membership Interest (100%) | 7,807 | 4,260 | 0.1% | |||||||||
39,811 | 29,148 | 0.8% | ||||||||||
Gulf Coast Machine & Supply Company | Texas / Manufacturing | Senior Secured Term Loan (10.50% (LIBOR + 8.50% with 2.00% LIBOR floor), due 10/12/2017)(4) | 19,500 | 19,500 | 12,963 | 0.3% | ||||||
Series A Convertible Preferred Stock (99,900 shares) | 25,950 | — | —% | |||||||||
45,450 | 12,963 | 0.3% | ||||||||||
See notes to consolidated financial statements.
6
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2014 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(47) | ||||||||||||
Harbortouch Payments, LLC(43) | Pennsylvania / Business Services | Senior Secured Term Loan A (9.00% (LIBOR + 7.00% with 2.00% LIBOR floor), due 9/30/2017)(3)(4) | $ | 130,392 | $ | 130,392 | $ | 130,392 | 3.5% | |||
Senior Secured Term Loan B (5.50% (LIBOR + 4.00% with 1.50% LIBOR floor) plus 5.50% PIK, due 3/31/2018)(4) | 137,226 | 137,226 | 137,226 | 3.7% | ||||||||
Senior Secured Term Loan C (13.00% (LIBOR + 9.00% with 4.00% LIBOR floor), due 9/29/2018)(4) | 25,196 | 25,196 | 25,196 | 0.7% | ||||||||
Class C Shares (535 shares) | 8,780 | 40,171 | 1.1% | |||||||||
301,594 | 332,985 | 9.0% | ||||||||||
The Healing Staff, Inc.(9) | North Carolina / Contracting | Secured Promissory Notes to The Healing Staff, Inc. and Vets Securing America, Inc. (15.00%, in non-accrual status effective 12/22/2010, past due) | 1,688 | 1,686 | — | —% | ||||||
Senior Demand Note to The Healing Staff, Inc. (15.00%, in non-accrual status effective 11/1/2010, past due) | 1,170 | 1,170 | — | —% | ||||||||
Common Stock of The Healing Staff, Inc. (1,000 shares) | — | — | —% | |||||||||
Common Stock of Vets Securing America, Inc. (1 share) | 975 | — | —% | |||||||||
3,831 | — | —% | ||||||||||
MITY, Inc.(17) | Utah / Durable Consumer Products | Revolving Line of Credit – $7,500 Commitment (9.50% (LIBOR + 7.00% with 2.50% LIBOR floor), due 3/23/2015)(4)(25)(26) | 2,500 | 2,500 | 2,500 | 0.1% | ||||||
Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 3/19/2019)(3)(4) | 18,250 | 18,250 | 18,250 | 0.5% | ||||||||
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 3/19/2019)(4) | 15,769 | 15,769 | 15,769 | 0.4% | ||||||||
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due on demand)(22) | 6,593 | 6,593 | 6,593 | 0.2% | ||||||||
Common Stock (42,053 shares) | 7,456 | 9,506 | 0.2% | |||||||||
50,568 | 52,618 | 1.4% | ||||||||||
National Property REIT Corp.(40) | Various / Real Estate | Senior Secured Term Loan A (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 5.50% PIK, due 4/1/2019)(4) | 218,717 | 218,717 | 218,717 | 5.9% | ||||||
Senior Secured Term Loan B (14.00% (LIBOR + 12.00% with 2.00% LIBOR floor) plus 3.00% PIK, due 4/1/2019)(4) | 24,650 | 24,650 | 24,650 | 0.7% | ||||||||
Common Stock (84,567 shares) | 48,696 | 74,619 | 2.0% | |||||||||
292,063 | 317,986 | 8.6% | ||||||||||
Nationwide Acceptance LLC(36) | Illinois / Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/18/2019)(22) | 14,820 | 14,820 | 14,820 | 0.4% | ||||||
Class A Shares (24,029,326 shares)(22) | 12,919 | 12,591 | 0.3% | |||||||||
27,739 | 27,411 | 0.7% | ||||||||||
NMMB, Inc.(24) | New York / Media | Senior Secured Note (14.00%, due 5/6/2016) | 3,714 | 3,714 | 2,300 | 0.1% | ||||||
Senior Secured Note to Armed Forces Communications, Inc. (14.00%, due 5/6/2016) | 7,000 | 7,000 | 4,334 | 0.1% | ||||||||
Series A Preferred Stock (7,200 shares) | 7,200 | — | —% | |||||||||
Series B Preferred Stock (5,669 shares) | 5,669 | — | —% | |||||||||
23,583 | 6,634 | 0.2% | ||||||||||
R-V Industries, Inc. | Pennsylvania / Manufacturing | Senior Subordinated Note (10.00% (LIBOR + 9.00% with 1.00% LIBOR floor), due 6/12/2018)(3)(4) | 30,411 | 30,411 | 30,411 | 0.8% | ||||||
Common Stock (545,107 shares) | 5,087 | 14,576 | 0.4% | |||||||||
Warrant (to purchase 200,000 shares of Common Stock, expires 6/30/2017) | 1,682 | 5,348 | 0.2% | |||||||||
37,180 | 50,335 | 1.4% | ||||||||||
See notes to consolidated financial statements.
7
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2014 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(47) | ||||||||||||
United Property REIT Corp.(41) | Various / Real Estate | Senior Term Loan (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 5.50% PIK, due 4/1/2019)(4) | $ | 58,219 | $ | 58,219 | $ | 58,219 | 1.6% | |||
Common Stock (70,689 shares) | 11,946 | 14,772 | 0.4% | |||||||||
70,165 | 72,991 | 2.0% | ||||||||||
Valley Electric Company, Inc.(35) | Washington / Construction & Engineering | Senior Secured Note to Valley Electric Co. of Mt. Vernon, Inc. (8.00% (LIBOR + 5.00% with 3.00% LIBOR floor) plus 2.50% PIK, due 12/31/2017)(3)(4) | 10,211 | 10,211 | 10,211 | 0.3% | ||||||
Senior Secured Note (10.00% plus 8.50% PIK, due 12/31/2018) | 21,380 | 21,380 | 18,365 | 0.5% | ||||||||
Common Stock (50,000 shares) | 26,204 | — | —% | |||||||||
57,795 | 28,576 | 0.8% | ||||||||||
Wolf Energy, LLC(12) | Kansas / Oil & Gas Production | Senior Secured Promissory Note secured by assets formerly owned by H&M (18.00%, in non-accrual status effective 4/15/2013, due 4/15/2018)(37) | 29,434 | — | 1,775 | —% | ||||||
Membership Interest (100%) | — | — | —% | |||||||||
Net Profits Interest (8% of Equity Distributions)(7) | — | 29 | —% | |||||||||
— | 1,804 | —% | ||||||||||
Total Control Investments | $ | 1,714,686 | $ | 1,723,749 | 46.5% | |||||||
Affiliate Investments (5.00% to 24.99% voting control)(48) | ||||||||||||
BNN Holdings Corp. | Michigan / Healthcare | Senior Term Loan A (6.50% (LIBOR + 5.50% with 1.00% LIBOR floor), due 8/29/2019)(3)(4) | $ | 21,670 | $ | 21,670 | $ | 21,461 | 0.6% | |||
Senior Term Loan B (11.50% (LIBOR + 10.50% with 1.00% LIBOR floor), due 8/29/2019)(3)(4) | 21,890 | 21,890 | 21,847 | 0.6% | ||||||||
Series A Preferred Stock (9,925.455 shares)(13) | 1,780 | 2,304 | 0.1% | |||||||||
Series B Preferred Stock (1,753.636 shares)(13) | 448 | 494 | —% | |||||||||
45,788 | 46,106 | 1.3% | ||||||||||
Total Affiliate Investments | $ | 45,788 | $ | 46,106 | 1.3% | |||||||
See notes to consolidated financial statements.
8
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2014 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Aderant North America, Inc. | Georgia / Software & Computer Services | Second Lien Term Loan (10.00% (LIBOR + 8.75% with 1.25% LIBOR floor), due 6/20/2019)(4)(16) | $ | 7,000 | $ | 6,920 | $ | 7,000 | 0.2% | |||
6,920 | 7,000 | 0.2% | ||||||||||
AFI Shareholder, LLC (f/k/a Aircraft Fasteners International, LLC) | California / Machinery | Class A Units (32,500 units) | 396 | 445 | —% | |||||||
396 | 445 | —% | ||||||||||
Airmall Inc.(27) | Pennsylvania / Property Management | Escrow Receivable | 5,880 | 3,678 | 0.1% | |||||||
5,880 | 3,678 | 0.1% | ||||||||||
Ajax Rolled Ring & Machine, LLC(42) | South Carolina / Manufacturing | Escrow Receivable | — | 2,734 | 0.1% | |||||||
— | 2,734 | 0.1% | ||||||||||
ALG USA Holdings, LLC | Pennsylvania / Hotels, Restaurants & Leisure | Second Lien Term Loan (10.25% (LIBOR + 9.00% with 1.25% LIBOR floor), due 2/28/2020)(4)(16) | 12,000 | 11,807 | 12,000 | 0.3% | ||||||
11,807 | 12,000 | 0.3% | ||||||||||
American Broadband Holding Company and Cameron Holdings of NC, Inc. | North Carolina / Telecommunication Services | Senior Secured Term Loan B (11.00% (LIBOR + 9.75% with 1.25% LIBOR floor), due 9/30/2018)(3)(4) | 74,654 | 74,654 | 74,654 | 2.0% | ||||||
74,654 | 74,654 | 2.0% | ||||||||||
American Gilsonite Company | Utah / Metal Services & Minerals | Second Lien Term Loan (11.50%, due 9/1/2017)(16) | 38,500 | 38,500 | 38,500 | 1.0% | ||||||
Membership Interest (99.9999%)(15) | — | 4,275 | 0.2% | |||||||||
38,500 | 42,775 | 1.2% | ||||||||||
Apidos CLO IX | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 19.16%)(11)(22) | 20,525 | 18,261 | 18,965 | 0.5% | ||||||
18,261 | 18,965 | 0.5% | ||||||||||
Apidos CLO XI | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 15.27%)(11)(22) | 38,340 | 32,764 | 34,261 | 0.9% | ||||||
32,764 | 34,261 | 0.9% | ||||||||||
Apidos CLO XII | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 16.44%)(11)(22) | 44,063 | 39,961 | 40,811 | 1.1% | ||||||
39,961 | 40,811 | 1.1% | ||||||||||
Apidos CLO XV | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 14.64%)(11)(22) | 36,515 | 35,620 | 35,215 | 0.9% | ||||||
35,620 | 35,215 | 0.9% | ||||||||||
Arctic Glacier U.S.A., Inc. | Minnesota / Food Products | Second Lien Term Loan (10.50% (LIBOR + 9.25% with 1.25% LIBOR floor), due 11/10/2019)(3)(4) | 150,000 | 150,000 | 149,674 | 4.0% | ||||||
150,000 | 149,674 | 4.0% | ||||||||||
Ark-La-Tex Wireline Services, LLC | Louisiana / Oil and Gas Production | Senior Secured Term Loan A (6.50% (LIBOR + 5.50% with 1.00% LIBOR floor), due 4/8/2019)(4) | 26,662 | 26,662 | 26,662 | 0.7% | ||||||
Senior Secured Term Loan B (10.50% (LIBOR + 9.50% with 1.00% LIBOR floor), due 4/8/2019)(4) | 26,662 | 26,662 | 26,662 | 0.7% | ||||||||
53,324 | 53,324 | 1.4% | ||||||||||
Armor Holding II LLC | New York / Diversified Financial Services | Second Lien Term Loan (10.25% (LIBOR + 9.00% with 1.25% LIBOR floor), due 12/26/2020)(3)(4)(16) | 7,000 | 6,881 | 6,881 | 0.2% | ||||||
6,881 | 6,881 | 0.2% | ||||||||||
See notes to consolidated financial statements.
9
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2014 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Atlantis Health Care Group (Puerto Rico), Inc. | Puerto Rico / Healthcare | Revolving Line of Credit – $4,000 Commitment (13.00% (LIBOR + 11.00% with 2.00% LIBOR floor), due 8/21/2015)(4)(25)(26) | $ | 2,350 | $ | 2,350 | $ | 2,350 | 0.1% | |||
Senior Term Loan (10.00% (LIBOR + 8.00% with 2.00% LIBOR floor), due 2/21/2018)(3)(4) | 38,759 | 38,759 | 34,264 | 0.9% | ||||||||
41,109 | 36,614 | 1.0% | ||||||||||
Babson CLO Ltd. 2014-III | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 14.71%)(11)(22) | 52,250 | 51,031 | 50,301 | 1.4% | ||||||
51,031 | 50,301 | 1.4% | ||||||||||
Blue Coat Systems, Inc. | Massachusetts / Software & Computer Services | Second Lien Term Loan (9.50% (LIBOR + 8.50% with 1.00% LIBOR floor), due 6/28/2020)(3)(4)(16) | 11,000 | 10,908 | 10,908 | 0.3% | ||||||
10,908 | 10,908 | 0.3% | ||||||||||
Broder Bros., Co. | Pennsylvania / Textiles, Apparel & Luxury Goods | Senior Secured Notes (10.25% (LIBOR + 9.00% with 1.25% LIBOR floor), due 4/8/2019)(3)(4)(46) | 254,800 | 254,800 | 253,883 | 6.8% | ||||||
254,800 | 253,883 | 6.8% | ||||||||||
Brookside Mill CLO Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 19.84%)(11)(22) | 26,000 | 22,345 | 24,453 | 0.7% | ||||||
22,345 | 24,453 | 0.7% | ||||||||||
Caleel + Hayden, LLC | Colorado / Personal & Nondurable Consumer Products | Membership Interest(31) | — | 242 | —% | |||||||
— | 242 | —% | ||||||||||
Capstone Logistics Acquisition, Inc. | Georgia / Business Services | Second Lien Term Loan (8.75% (LIBOR + 7.75% with 1.00% LIBOR floor), due 10/7/2022)(3)(4) | 65,000 | 64,363 | 64,363 | 1.7% | ||||||
64,363 | 64,363 | 1.7% | ||||||||||
Cent CLO 17 Limited | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 11.49%)(11)(22) | 24,870 | 21,054 | 23,164 | 0.6% | ||||||
21,054 | 23,164 | 0.6% | ||||||||||
Cent CLO 20 Limited | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 11.31%)(11)(22) | 40,275 | 37,296 | 38,076 | 1.0% | ||||||
37,296 | 38,076 | 1.0% | ||||||||||
Cent CLO 21 Limited | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 10.55%)(11)(22) | 48,528 | 47,382 | 44,694 | 1.2% | ||||||
47,382 | 44,694 | 1.2% | ||||||||||
CIFC Funding 2011-I, Ltd. | Cayman Islands / Diversified Financial Services | Class D Senior Secured Notes (5.23% (LIBOR + 5.00%, due 1/19/2023)(4)(22) | 19,000 | 15,452 | 18,136 | 0.5% | ||||||
Class E Subordinated Notes (7.23% (LIBOR + 7.00%, due 1/19/2023)(4)(22) | 15,400 | 12,910 | 15,241 | 0.4% | ||||||||
28,362 | 33,377 | 0.9% | ||||||||||
CIFC Funding 2013-III, Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 14.66%)(11)(22) | 44,100 | 37,432 | 41,626 | 1.1% | ||||||
37,432 | 41,626 | 1.1% | ||||||||||
CIFC Funding 2013-IV, Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 13.40%)(11)(22) | 45,500 | 38,250 | 39,781 | 1.1% | ||||||
38,250 | 39,781 | 1.1% | ||||||||||
See notes to consolidated financial statements.
10
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2014 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
CIFC Funding 2014-IV Investor, Ltd. | Cayman Islands / Diversified Financial Services | Income Notes (Residual Interest, current yield 11.32%)(11)(22) | $ | 41,500 | $ | 39,555 | $ | 37,873 | 1.0% | |||
39,555 | 37,873 | 1.0% | ||||||||||
Cinedigm DC Holdings, LLC | New York / Software & Computer Services | Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021)(4) | 68,798 | 68,748 | 68,798 | 1.9% | ||||||
68,748 | 68,798 | 1.9% | ||||||||||
The Copernicus Group, Inc. | North Carolina / Healthcare | Escrow Receivable | — | 119 | —% | |||||||
— | 119 | —% | ||||||||||
Coverall North America, Inc. | Florida / Commercial Services | Senior Secured Term Loan (11.50% (LIBOR + 8.50% with 3.00% LIBOR floor), due 12/17/2017)(3)(4) | 50,566 | 50,566 | 50,566 | 1.4% | ||||||
50,566 | 50,566 | 1.4% | ||||||||||
Crosman Corporation | New York / Manufacturing | Second Lien Term Loan (12.00% (LIBOR + 10.50% with 1.50% LIBOR floor), due 12/30/2019)(3)(4) | 40,000 | 40,000 | 37,516 | 1.0% | ||||||
40,000 | 37,516 | 1.0% | ||||||||||
CRT MIDCO, LLC | Wisconsin / Media | Senior Secured Term Loan (10.50% (LIBOR + 7.50% with 3.00% LIBOR floor), due 6/30/2017)(3)(4) | 46,754 | 46,754 | 46,754 | 1.3% | ||||||
46,754 | 46,754 | 1.3% | ||||||||||
Deltek, Inc. | Virginia / Software & Computer Services | Second Lien Term Loan (10.00% (LIBOR + 8.75% with 1.25% LIBOR floor), due 10/10/2019)(3)(4)(16) | 12,000 | 11,863 | 12,000 | 0.3% | ||||||
11,863 | 12,000 | 0.3% | ||||||||||
Diamondback Operating, LP | Oklahoma / Oil & Gas Production | Net Profits Interest (15% of Equity Distributions)(7) | — | — | —% | |||||||
— | — | —% | ||||||||||
Edmentum, Inc. | Minnesota / Consumer Services | Second Lien Term Loan (11.25% (LIBOR + 9.75% with 1.50% LIBOR floor), due 5/17/2019)(3)(4)(16) | 50,000 | 48,561 | 43,107 | 1.2% | ||||||
48,561 | 43,107 | 1.2% | ||||||||||
Empire Today, LLC | Illinois / Durable Consumer Products | Senior Secured Note (11.375%, due 2/1/2017)(16) | 15,700 | 15,467 | 13,850 | 0.4% | ||||||
15,467 | 13,850 | 0.4% | ||||||||||
Fischbein, LLC | North Carolina / Machinery | Escrow Receivable | — | 121 | —% | |||||||
— | 121 | —% | ||||||||||
Fleetwash, Inc. | New Jersey / Business Services | Senior Secured Term Loan A (6.50% (LIBOR + 5.50% with 1.00% LIBOR floor), due 4/30/2019)(4) | 24,750 | 24,750 | 24,750 | 0.7% | ||||||
Senior Secured Term Loan B (10.50% (LIBOR + 9.50% with 1.00% LIBOR floor), due 4/30/2019)(4) | 25,000 | 25,000 | 25,000 | 0.7% | ||||||||
Delayed Draw Term Loan – $15,000 Commitment (9.50% (LIBOR + 8.50% with 1.00% LIBOR floor), due 4/30/2019)(4)(25) | — | — | — | —% | ||||||||
49,750 | 49,750 | 1.4% | ||||||||||
Focus Brands, Inc. | Georgia / Consumer Services | Second Lien Term Loan (10.25% (LIBOR + 9.00% with 1.25% LIBOR floor), due 8/21/2018)(4)(16) | 18,000 | 17,799 | 18,000 | 0.5% | ||||||
17,799 | 18,000 | 0.5% | ||||||||||
Focus Products Group International, LLC | Illinois / Durable Consumer Products | Common Stock (5,638 shares) | 27 | — | —% | |||||||
27 | — | —% | ||||||||||
See notes to consolidated financial statements.
11
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2014 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Galaxy XV CLO, Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 14.88%)(11)(22) | $ | 35,025 | $ | 28,583 | $ | 30,629 | 0.8% | |||
28,583 | 30,629 | 0.8% | ||||||||||
Galaxy XVI CLO, Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 13.23%)(11)(22) | 22,575 | 19,801 | 19,861 | 0.5% | ||||||
19,801 | 19,861 | 0.5% | ||||||||||
Galaxy XVII CLO, Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 10.31%)(11)(22) | 39,905 | 37,390 | 34,809 | 0.9% | ||||||
37,390 | 34,809 | 0.9% | ||||||||||
Global Employment Solutions, Inc. | Colorado / Business Services | Senior Secured Term Loan (10.00% (LIBOR + 9.00% with 1.00% LIBOR floor), due 3/25/2019)(3)(4) | 28,393 | 28,393 | 28,393 | 0.8% | ||||||
28,393 | 28,393 | 0.8% | ||||||||||
GTP Operations, LLC(10) | Texas / Software & Computer Services | Senior Secured Term Loan (10.00% (LIBOR + 5.00% with 5.00% LIBOR floor), due 12/11/2018)(3)(4) | 119,970 | 119,970 | 119,970 | 3.2% | ||||||
119,970 | 119,970 | 3.2% | ||||||||||
Halcyon Loan Advisors Funding 2012-1 Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 26.02%)(11)(22) | 23,188 | 20,454 | 22,870 | 0.6% | ||||||
20,454 | 22,870 | 0.6% | ||||||||||
Halcyon Loan Advisors Funding 2013-1 Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 19.31%)(11)(22) | 40,400 | 36,781 | 40,448 | 1.1% | ||||||
36,781 | 40,448 | 1.1% | ||||||||||
Halcyon Loan Advisors Funding 2014-1 Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 15.74%)(11)(22) | 24,500 | 21,694 | 22,925 | 0.6% | ||||||
21,694 | 22,925 | 0.6% | ||||||||||
Halcyon Loan Advisors Funding 2014-2 Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 16.89%)(11)(22) | 41,164 | 37,185 | 39,340 | 1.1% | ||||||
37,185 | 39,340 | 1.1% | ||||||||||
Harley Marine Services, Inc. | Washington / Transportation | Second Lien Term Loan (10.50% (LIBOR + 9.25% with 1.25% LIBOR floor), due 12/20/2019)(3)(4)(16) | 9,000 | 8,843 | 8,843 | 0.2% | ||||||
8,843 | 8,843 | 0.2% | ||||||||||
Hollander Sleep Products, LLC | Florida / Durable Consumer Products | Senior Secured Term Loan (9.00% (LIBOR + 8.00% with 1.00% LIBOR floor), due 10/21/2020)(4) | 22,500 | 22,500 | 22,500 | 0.6% | ||||||
22,500 | 22,500 | 0.6% | ||||||||||
ICON Health & Fitness, Inc. | Utah / Durable Consumer Products | Senior Secured Note (11.875%, due 10/15/2016)(16) | 21,850 | 21,965 | 20,691 | 0.6% | ||||||
21,965 | 20,691 | 0.6% | ||||||||||
ICV-CSI Holdings, LLC | New York / Transportation | Membership Units (1.6 units) | 1,639 | 2,072 | 0.1% | |||||||
1,639 | 2,072 | 0.1% | ||||||||||
IDQ Holdings, Inc. | Texas / Automobile | Senior Secured Note (11.50%, due 4/1/2017)(16) | 12,500 | 12,369 | 12,859 | 0.3% | ||||||
12,369 | 12,859 | 0.3% | ||||||||||
Ikaria, Inc. | New Jersey / Healthcare | Second Lien Term Loan (8.75% (LIBOR + 7.75% with 1.00% LIBOR floor), due 2/12/2022)(4)(16) | 20,000 | 19,457 | 19,867 | 0.5% | ||||||
19,457 | 19,867 | 0.5% | ||||||||||
See notes to consolidated financial statements.
12
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2014 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Instant Web, LLC | Minnesota / Media | Senior Secured Term Loan A (5.50% (LIBOR + 4.50% with 1.00% LIBOR floor), due 3/28/2019)(4) | $ | 125,405 | $ | 125,405 | $ | 125,058 | 3.4% | |||
Senior Secured Term Loan B (12.00% (LIBOR + 11.00% with 1.00% LIBOR floor), due 3/28/2019)(3)(4) | 128,000 | 128,000 | 128,000 | 3.5% | ||||||||
Senior Secured Term Loan C (12.75% (LIBOR + 11.75% with 1.00% LIBOR floor), due 3/28/2019)(4) | 12,500 | 12,500 | 12,500 | 0.3% | ||||||||
265,905 | 265,558 | 7.2% | ||||||||||
InterDent, Inc. | California / Healthcare | Senior Secured Term Loan A (6.25% (LIBOR + 5.25% with 1.00% LIBOR floor), due 8/3/2017)(4) | 126,038 | 126,038 | 126,038 | 3.4% | ||||||
Senior Secured Term Loan B (11.25% (LIBOR + 10.25% with 1.00% LIBOR floor), due 8/3/2017)(3)(4) | 131,125 | 131,125 | 131,125 | 3.5% | ||||||||
257,163 | 257,163 | 6.9% | ||||||||||
JAC Holding Corporation | Michigan / Transportation | Senior Secured Note (11.50%, due 10/1/2019)(16) | 3,000 | 3,000 | 3,000 | 0.1% | ||||||
3,000 | 3,000 | 0.1% | ||||||||||
JHH Holdings, Inc. | Texas / Healthcare | Second Lien Term Loan (11.25% (LIBOR + 10.00% with 1.25% LIBOR floor) plus 0.50% PIK, due 3/30/2019)(3)(4) | 35,208 | 35,208 | 35,208 | 0.9% | ||||||
35,208 | 35,208 | 0.9% | ||||||||||
LaserShip, Inc. | Virginia / Transportation | Senior Secured Term Loan A (10.25% (LIBOR + 8.25% with 2.00% LIBOR floor), due 3/18/2019)(3)(4) | 35,859 | 35,859 | 34,784 | 0.9% | ||||||
Senior Secured Term Loan B (10.25% (LIBOR + 8.25% with 2.00% LIBOR floor), due 3/18/2019)(3)(4) | 21,972 | 21,972 | 21,312 | 0.6% | ||||||||
Delayed Draw Term Loan – $6,000 Commitment (2.00%, due 12/31/2015)(25) | — | — | — | —% | ||||||||
57,831 | 56,096 | 1.5% | ||||||||||
LCM XIV Ltd. | Cayman Islands / Diversified Financial Services | Income Notes (Residual Interest, current yield 15.92%)(11)(22) | 26,500 | 23,824 | 24,033 | 0.6% | ||||||
23,824 | 24,033 | 0.6% | ||||||||||
LHC Holdings Corp. | Florida / Healthcare | Revolving Line of Credit – $750 Commitment (8.50% (LIBOR + 6.00% with 2.50% LIBOR floor) plus 2.00% default interest, due 5/31/2015)(4)(25)(26) | — | — | — | —% | ||||||
Senior Subordinated Debt (10.50%, due 5/31/2015)(3) | 1,265 | 1,265 | 1,263 | —% | ||||||||
Membership Interest (125 units) | 216 | 197 | —% | |||||||||
1,481 | 1,460 | —% | ||||||||||
Madison Park Funding IX, Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 14.93%)(11)(22) | 31,110 | 23,925 | 26,288 | 0.7% | ||||||
23,925 | 26,288 | 0.7% | ||||||||||
Matrixx Initiatives, Inc. | New Jersey / Pharmaceuticals | Senior Secured Term Loan A (7.50% (LIBOR + 6.00% with 1.50% LIBOR floor) plus 2.00% PIK, due 8/9/2018)(3)(4) | 36,736 | 36,736 | 35,951 | 1.0% | ||||||
Senior Secured Term Loan B (12.50% (LIBOR + 11.00% with 1.50% LIBOR floor) plus 2.00% PIK, due 8/9/2018)(3)(4) | 40,360 | 40,360 | 40,235 | 1.1% | ||||||||
77,096 | 76,186 | 2.1% | ||||||||||
Maverick Healthcare Equity, LLC | Arizona / Healthcare | Preferred Units (1,250,000 units) | 1,252 | 1,134 | —% | |||||||
Class A Common Units (1,250,000 units) | — | — | —% | |||||||||
1,252 | 1,134 | —% | ||||||||||
Mountain View CLO 2013-I Ltd. | Cayman Islands / Diversified Financial Services | Subordinated Notes (Residual Interest, current yield 16.57%)(11)(22) | 43,650 | 38,989 | 42,284 | 1.1% | ||||||
38,989 | 42,284 | 1.1% | ||||||||||
See notes to consolidated financial statements.
13
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2014 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
NCP Finance Limited Partnership(23) | Ohio / Consumer Finance | Subordinated Secured Term Loan (11.00% (LIBOR + 9.75% with 1.25% LIBOR floor), due 9/30/2018)(3)(4)(16)(22) | $ | 16,376 | $ | 16,120 | $ | 16,376 | 0.4% | |||
16,120 | 16,376 | 0.4% | ||||||||||
New Century Transportation, Inc. | New Jersey / Transportation | Senior Subordinated Term Loan (12.00% (LIBOR + 10.00% with 2.00% LIBOR floor) plus 4.00% PIK, in non-accrual status effective 4/1/2014, due 2/3/2018)(4) | 980 | 980 | — | —% | ||||||
980 | — | —% | ||||||||||
Nixon, Inc. | California / Durable Consumer Products | Senior Secured Term Loan (8.75% plus 2.75% PIK, due 4/16/2018)(3)(16) | 13,734 | 13,535 | 13,535 | 0.4% | ||||||
13,535 | 13,535 | 0.4% | ||||||||||
NRG Manufacturing, Inc. | Texas / Manufacturing | Escrow Receivable | — | 1,151 | —% | |||||||
— | 1,151 | —% | ||||||||||
Octagon Investment Partners XV, Ltd. | Cayman Islands / Diversified Financial Services | Income Notes (Residual Interest, current yield 20.67%)(11)(22) | 26,901 | 23,755 | 25,844 | 0.7% | ||||||
23,755 | 25,844 | 0.7% | ||||||||||
Onyx Payments(44) | Texas / Diversified Financial Services | Revolving Line of Credit – $5,000 Commitment (9.00% (LIBOR + 8.00% with 1.00% LIBOR floor), due 9/10/2015)(4)(25)(26) | 2,000 | 2,000 | 2,000 | 0.1% | ||||||
S | ||||||||||||