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EX-31.2 - EXHIBIT 31.2 - PhenixFIN Corpv407991_ex31-2.htm
EX-32.1 - EXHIBIT 32.1 - PhenixFIN Corpv407991_ex32-1.htm
EX-31.1 - EXHIBIT 31.1 - PhenixFIN Corpv407991_ex31-1.htm

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

Form 10-Q

 

  

(Mark One)  
   
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
For the Quarterly Period Ended March 31, 2015
or
   
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from          to

 

Commission file number: 1-35040

 

MEDLEY CAPITAL CORPORATION

 

(Exact Name of Registrant as Specified in its Charter)

 

Delaware   27-4576073
(State or Other Jurisdiction of   (I.R.S. Employer
Incorporation or Organization)   Identification No.)
     
375 Park Avenue, 33rd Floor, New York, NY 10152   10152
(Address of Principal Executive Offices)   (Zip Code)

 

(212) 759-0777

 

(Registrant’s Telephone Number, Including Area Code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

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 (§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 ¨ 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. (Check one):

 

Large accelerated filer ¨           Accelerated filer x         Non-accelerated filer ¨        Smaller reporting company ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ¨ No x

 

As of May 11, 2015 the Registrant had 57,907,607 shares of common stock, $0.001 par value, outstanding.

 

 
 

 

MEDLEY CAPITAL CORPORATION

TABLE OF CONTENTS

 

Part I.   Financial Information  
       
Item 1.   Financial Statements  
       
    Consolidated Statements of Assets and Liabilities as of March 31, 2015 (unaudited) and September 30, 2014 F-1
       
    Consolidated Statements of Operations for the three and six months ended March 31, 2015 and 2014 (unaudited) F-2
       
    Consolidated Statements of Changes in Net Assets for the six months ended March 31, 2015 and 2014 (unaudited) F-3
       
    Consolidated Statements of Cash Flows for the six months ended March 31, 2015 and 2014 (unaudited) F-4
       
    Consolidated Schedules of Investments as of March 31, 2015 (unaudited) and September 30, 2014 F-5
       
    Notes to Consolidated Financial Statements (unaudited) F-25
       
Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations 1
       
Item 3.   Quantitative and Qualitative Disclosures About Market Risk 17
       
Item 4.   Controls and Procedures 18
       
Part II.   Other Information 19
       
Item 1.   Legal Proceedings 19
       
Item 1A.   Risk Factors 19
       
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds 19
       
Item 3.   Defaults Upon Senior Securities 19
       
Item 4.   Other Information 19
       
Item 5.   Exhibits 20
       
SIGNATURES 23

 

 
 

 

Medley Capital Corporation 

Consolidated Statements of Assets and Liabilities 

 

   As of 
   March 31, 2015   September 30, 2014 
   (unaudited)     
ASSETS          
Investments at fair value          
Non-controlled/non-affiliated investments (amortized cost of $1,225,385,079 and $1,215,421,753, respectively)  $1,164,170,162   $1,185,859,238 
Controlled investments (amortized cost of $40,588,373 and $39,899,954, respectively)   37,512,556    38,244,386 
Affiliated investments (amortized cost of $10,000,000 and $19,943,150, respectively)   10,000,000    21,434,667 
Total investments at fair value   1,211,682,718    1,245,538,291 
Cash and cash equivalents   29,146,314    36,731,488 
Interest receivable   13,625,886    13,095,503 
Deferred financing costs, net   11,043,962    11,688,339 
Fees receivable   1,311,597    1,930,079 
Other assets   358,503    651,035 
Receivable for dispositions and investments sold   4,572,775    14,289,610 
Deferred offering costs   304,566    222,104 
Total assets  $1,272,046,321   $1,324,146,449 
LIABILITIES          
Revolving credit facility payable  $194,000,000   $146,500,000 
Term loan payable   171,500,000    171,500,000 
Notes payable   103,500,000    103,500,000 
SBA debentures payable   110,000,000    100,000,000 
Payable for investments originated, purchased and participated   -    54,995,000 
Management and incentive fees payable (See note 6)   9,984,277    10,444,811 
Accounts payable and accrued expenses   2,206,116    2,330,244 
Interest and fees payable   1,195,528    2,096,171 
Administrator expenses payable (See note 6)   1,098,338    1,012,466 
Deferred tax liability   2,086,600    1,592,145 
Deferred revenue   341,549    265,493 
Due to affiliate   16,766    39,564 
Offering costs payable   22,500    13,674 
Total liabilities  $595,951,674   $594,289,568 
Commitments (See note 8)          
NET ASSETS          
Common stock, par value $.001 per share, 100,000,000 common shares authorized, 57,907,607 and 58,733,234 common shares issued and outstanding, respectively  $57,908   $58,733 
Capital in excess of par value   731,514,288    739,443,065 
Accumulated undistributed net investment income   20,516,952    21,673,794 
Accumulated undistributed net realized gain/(loss) from investments   (9,617,167)   - 
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes   (66,377,334)   (31,318,711)
Total net assets   676,094,647    729,856,881 
Total liabilities and net assets  $1,272,046,321   $1,324,146,449 
NET ASSET VALUE PER SHARE  $11.68   $12.43 

 

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
 
   2015   2014   2015   2014 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
INVESTMENT INCOME                    
Interest from investments                    
Non-controlled/Non-affiliated investments:                    
Cash  $31,181,799   $22,976,951   $63,622,513   $45,041,183 
Payment-in-kind   1,784,136    2,625,971    3,634,864    5,251,629 
Affiliated investments:                    
Cash   340,600    276,883    805,152    553,872 
Payment-in-kind   68,367    114,980    190,446    231,037 
Controlled investments:                    
Cash   393,423    -    794,576    - 
Payment-in-kind   466,928    -    951,131    - 
Total interest income   34,235,253    25,994,785    69,998,682    51,077,721 
Interest from cash and cash equivalents   1,327    2,354    2,972    4,308 
Fee income (See note 9)   2,539,341    5,400,886    6,623,198    11,984,234 
Total investment income   36,775,921    31,398,025    76,624,852    63,066,263 
                     
EXPENSES                    
Base management fees (See note 6)   5,546,027    4,078,221    11,330,204    7,743,187 
Incentive fees (See note 6)   4,438,250    4,138,807    9,535,758    8,396,522 
Interest and financing expenses   6,248,296    4,613,661    12,604,798    9,153,907 
Administrator expenses (See note 6)   1,098,337    840,566    2,120,148    1,512,562 
Professional fees   839,340    542,689    1,372,032    1,157,012 
Directors fees   124,839    190,125    298,375    341,250 
Insurance   142,822    136,720    285,645    276,285 
General and administrative   585,010    302,007    934,859    899,450 
Total expenses   19,022,921    14,842,796    38,481,819    29,480,175 
NET INVESTMENT INCOME   17,753,000    16,555,229    38,143,033    33,586,088 
                     
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:                    
Net realized gain/(loss) from investments   (9,400,583)   28,052    (9,617,167)   73,052 
Net unrealized appreciation/(depreciation) on investments   4,136,169    (3,978,116)   (34,564,168)   (6,760,497)
Net unrealized appreciation/(depreciation) on participations   -    153,695    -    153,695 
Change in provision for deferred taxes on unrealized gain on investments   (705,405)   (316,858)   (494,455)   (316,858)
Net gain/(loss) on investments   (5,969,819)   (4,113,227)   (44,675,790)   (6,850,608)
                     
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $11,783,181   $12,442,002   $(6,532,757)  $26,735,480 
                     
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE  $0.20   $0.28   $(0.11)  $0.64 
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE  $0.30   $0.38   $0.65   $0.80 
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)   58,499,797    43,883,259    58,617,823    42,002,482 
                     
DIVIDENDS DECLARED PER COMMON SHARE  $0.30   $0.37   $0.67   $0.74 

 

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 
   2015   2014 
   (unaudited)   (unaudited) 
INCREASE FROM OPERATIONS:          
Net investment income  $38,143,033   $33,586,088 
Net realized gain/(loss) from investments   (9,617,167)   73,052 
Net unrealized appreciation/(depreciation) on investments   (34,564,168)   (6,760,497)
Net unrealized appreciation/(depreciation) on participations   -    153,695 
Change in provision for deferred taxes on unrealized gain on investments   (494,455)   (316,858)
Net increase/(decrease) in net assets from operations   (6,532,757)   26,735,480 
SHAREHOLDER DISTRIBUTIONS:          
Distributions declared from net investment income   (39,299,875)   (31,950,505)
Net decrease in net assets from shareholder distributions   (39,299,875)   (31,950,505)
CAPITAL SHARE TRANSACTIONS:          
Issuance of common stock, net of underwriting costs (0 and 6,000,000 shares, respectively)   -    81,060,000 
Repurchase of common stock under stock repurchase program  (825,677 and 0 shares, respectively)   (7,929,602)   - 
Offering costs   -    (132,715)
Issuance of common stock under dividend reinvestment plan (0 and 130,808 shares, respectively)   -    1,693,167 
Net increase in net assets from common share transactions   (7,929,602)   82,620,452 
Total increase/(decrease) in net assets   (53,762,234)   77,405,427 
Net assets at beginning of period   729,856,881    509,834,455 
Net assets at end of period including accumulated undistributed net investment income of  $20,516,952 and $13,820,206, respectively  $676,094,647   $587,239,882 
           
Net asset value per common share  $11.68   $12.69 
Common shares outstanding at end of period   57,907,607    46,283,712 

  

See accompanying notes to consolidated financial statements.

 

F-3
 

 

Medley Capital Corporation 

Consolidated Statements of Cash Flows 

 

   For the six months ended March 31 
   2015   2014 
   (unaudited)   (unaudited) 
Cash flows from operating activities          
NET INCREASE/DECREASE IN NET ASSETS FROM OPERATIONS  $(6,532,757)  $26,735,480 
ADJUSTMENTS TO RECONCILE NET INCREASE/DECREASE IN NET ASSETS FROM OPERATIONS TO NET CASH USED BY OPERATING ACTIVITIES:          
Investment increases due to payment-in-kind interest   (4,762,063)   (5,320,542)
Net amortization of premium/(discount) on investments   (929,849)   (256,725)
Amortization of deferred financing costs   1,195,227    995,749 
Net realized (gain)/loss from investments   9,617,167    (73,052)
Net deferred income taxes   494,455    316,858 
Net unrealized (appreciation)/depreciation on investments   34,564,168    6,760,497 
Net unrealized (appreciation)/depreciation on participations   -    (153,695)
Proceeds from sale and settlements of investments   173,857,867    143,038,959 
Purchases, originations and participations   (178,491,717)   (353,760,353)
(Increase)/decrease in operating assets:          
Interest receivable   (530,383)   (2,769,222)
Fees receivable   618,482    (431,417)
Other assets   292,532    (51,687)
Receivable for dispositions and investments sold   9,716,835    (1,365,600)
Increase/(decrease) in operating liabilities:          
Payable for investments purchased, originated and participated   (54,995,000)   1,122,292 
Management and incentive fees payable, net   (460,534)   1,317,376 
Accounts payable and accrued expenses   (124,128)   449,846 
Interest and fees payable   (900,643)   120,619 
Administrator expenses payable   85,872    139,358 
Deferred revenue   76,056    71,263 
Due to affiliate   (22,798)   (78,694)
NET CASH USED BY OPERATING ACTIVITIES   (17,231,211)   (183,192,690)
Cash flows from financing activities          
Proceeds from issuance of common stock, net of underwriting costs   -    82,753,167 
Repurchase of common stock under stock repurchase program   (7,929,602)   - 
Offering costs paid   (73,636)   (347,836)
Borrowings on debt   101,500,000    251,300,000 
Paydowns on debt   (44,000,000)   (103,600,000)
Financing costs paid   (550,850)   (847,149)
Payments of cash dividends   (39,299,875)   (31,950,505)
NET CASH PROVIDED BY FINANCING ACTIVITIES   9,646,037    197,307,677 
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS   (7,585,174)   14,114,987 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   36,731,488    8,557,899 
CASH AND CASH EQUIVALENTS, END OF PERIOD  $29,146,314   $22,672,886 
Supplemental Information:          
Interest paid during the period  $12,271,761   $7,999,150 
Supplemental non-cash information          
Payment-in-kind interest income  $4,776,441   $5,482,666 
Net amortization of premium/(discount) on investments  $929,849   $256,725 
Amortization of deferred financing costs  $(1,195,227)  $(995,749)
Issuance of common stock in connection with dividend reinvestment plan  $-   $1,693,167 

 

See accompanying notes to consolidated financial statements.

 

F-4
 

 

Medley Capital Corporation 

Consolidated Schedule of Investments 

March 31, 2015

(Unaudited)

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
Non-Controlled/ Non-Affiliated Investments:
                              
AAR Intermediate Holdings LLC(11)  Energy:  Oil & Gas  Senior Secured First Lien Term Loan  (LIBOR + 12.00%, 1.00% LIBOR Floor)(18)  3/30/2019   30,726,073    28,803,671    28,263,488    4.2%
      Senior Secured First Lien Term Loan  (LIBOR + 12.00%, 1.00% LIBOR Floor)(18)  6/30/2015   2,874,954    2,874,954    2,866,769    0.4%
      Warrants to purchase 1.80% of outstanding company equity.  3/30/2019   -    2,274,480    1,439,417    0.2%
             33,601,027    33,953,105    32,569,674      
                              
Accupac, Inc.  Containers, Packaging & Glass  Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor) (17)  3/20/2020   33,000,000    33,000,000    33,000,000    4.9%
             33,000,000    33,000,000    33,000,000      
                              
AESC Holding Corp, Inc.  Retail  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)  5/27/2019   20,000,000    20,000,000    20,200,000    3.0%
             20,000,000    20,000,000    20,200,000      
                              
Albertville Quality Foods, Inc. (11)  Beverage, Food & Tobacco  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap)(17)  10/31/2018   17,452,830    17,452,830    17,801,887    2.6%
             17,452,830    17,452,830    17,801,887      
                              
Alora Pharmaceuticals LLC (11)  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)  9/13/2018   12,540,442    12,540,442    12,620,830    1.9%
             12,540,442    12,540,442    12,620,830      
                              
AM3 Pinnacle Corporation  Media:  Broadcasting & Subscription  Senior Secured First Lien Term Loan (10.00%)  10/22/2018   7,504,265    7,504,265    7,407,159    1.1%
             7,504,265    7,504,265    7,407,159      
                              
ARBOC Specialty Vehicles LLC  Automotive  Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor)(18)  3/21/2018   20,340,500    20,340,500    20,985,313    3.1%
             20,340,500    20,340,500    20,985,313      
                              
Aurora Flight Sciences Corporation  Aerospace & Defense  Senior Secured Second Lien Term Loan (11.25% Cash, 2.00% PIK)  3/16/2016   16,295,174    16,295,174    16,295,174    2.4%
             16,295,174    16,295,174    16,295,174      

 

F-5
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
Autosplice, Inc. (7)(9)  High Tech Industries  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.00% LIBOR Floor)(18)  6/30/2019   14,817,844    14,817,844    15,128,971    2.2%
             14,817,844    14,817,844    15,128,971      
                              
BayDelta Maritime LLC  Transportation:  Cargo  Warrants to purchase 10% of the outstanding equity  6/30/2016   -    25,000    332,876    0.1%
             -    25,000    332,876      
                              
Be Green Packaging, LLC (7)(9)  Containers, Packaging & Glass  Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor)(18)  12/13/2018   5,000,000    5,000,000    4,884,608    0.7%
      Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor)(18)  12/13/2018   3,208,333    3,208,333    3,124,643    0.5%
      Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor)(18)  12/13/2018   354,167    354,167    335,567    0.0%
      1.48% Partnership Interest in RCAF VI CIV XXIII, L.P.      -    416,250    236,338    0.0%
             8,562,500    8,978,750    8,581,156      
                              
Brantley Transportation LLC (11)  Energy:  Oil & Gas  Senior Secured First Lien Term Loan (12.00%)  8/2/2017   9,037,500    9,161,230    8,716,335    1.3%
             9,037,500    9,161,230    8,716,335      
                              
California Products Corporation  Chemicals, Plastics & Rubber  Senior Secured Second Lien Term Loan (13.00%)  5/27/2019   13,750,000    13,750,000    14,025,000    2.1%
             13,750,000    13,750,000    14,025,000      
                              
Calloway Laboratories, Inc.(10)(19)  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (17.00% PIK)  9/30/2015   35,305,460    29,198,477    11,020,683    1.6%
      Warrants to purchase 15.00% of the outstanding equity  9/30/2015   -    68,433    -    0.0%
             35,305,460    29,266,910    11,020,683      

 

F-6
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
Capstone Nutrition  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(18)  4/28/2019   20,000,000    20,000,000    20,105,600    3.0%
      384.62 Units of Common Stock (12)  4/28/2019   -    400,000    595,938    0.1%
             20,000,000    20,400,000    20,701,538      
                              
CP OPCO LLC  Services:  Consumer  Senior Secured First Lien Term Loan (LIBOR + 6.75% Cash, 1.00% LIBOR Floor)(18)  9/30/2020   20,000,000    20,000,000    19,779,407    2.9%
             20,000,000    20,000,000    19,779,407      
                              
ContMid Intermediate Inc.(11)  Automotive  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)  10/25/2019   15,000,000    15,000,000    14,865,724    2.2%
             15,000,000    15,000,000    14,865,724      
                              
ConvergeOne Holdings Corporation  Telecommunications  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(18)  6/17/2021   12,500,000    12,384,883    12,171,750    1.8%
             12,500,000    12,384,883    12,171,750      
                              
Crow Precision Components LLC  Aerospace & Defense  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(17)  9/30/2019   10,000,000    10,000,000    9,996,713    1.5%
             10,000,000    10,000,000    9,996,713      
                              
DHISCO Electronic Distribution, Inc. (7)(11)(23)  Hotel, Gaming & Leisure  Senior Secured First Lien Term Loan A (LIBOR + 9.00%, 1.50% LIBOR Floor)  11/10/2019   31,238,095    31,238,095    30,998,187    4.6%
                              
      Senior Secured First Lien Term Loan B (LIBOR + 10.50% PIK)  2/10/2018   5,954,887    5,954,887    5,929,294    0.9%
                              
      Revolving Credit Facility(25)  5/10/2017   -    -    -    0.0%
      Equity - 1,230,769 Units(21)  2/10/2018   -    1,230,769    1,773,228    0.3%
             37,192,982    38,423,751    38,700,709      
                              
DLR Restaurants LLC (11)  Hotel, Gaming & Leisure  Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)  4/18/2018   23,217,691    23,217,691    23,157,093    3.4%
      Unsecured Debt (12.00% Cash, 4.00% PIK)  4/18/2018   270,574    270,574    269,812    0.0%
             23,488,265    23,488,265    23,426,905      
                              
DreamFinders Homes LLC (7)(9)  Construction & Building  Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)  10/1/2018   14,704,339    14,568,298    15,242,884    2.3%
      5,000 units of outstanding equity  10/1/2018   -    180,000    2,919,061    0.4%
             14,704,339    14,748,298    18,161,945      
                              
Dynamic Energy Services International LLC  Energy:  Oil & Gas  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(17)  3/6/2018   18,050,000    18,050,000    17,716,978    2.6%
             18,050,000    18,050,000    17,716,978      

 

F-7
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
Essex Crane Rental Corp. (11)  Construction & Building  Senior Secured First Lien Term Loan (LIBOR + 10.50% Cash, 1.00% LIBOR Floor)(18)  5/13/2019   20,000,000    20,000,000    20,032,800    3.0%
             20,000,000    20,000,000    20,032,800      
                              
FC Operating LLC(10)  Retail  Senior Secured First Lien Term Loan (LIBOR + 10.75% Cash, 1.25% LIBOR Floor)(18)  11/14/2017   10,356,053    10,356,053    6,278,917    0.9%
             10,356,053    10,356,053    6,278,917      
                              
FKI Security Group LLC (11)  Capital Equipment  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)  3/30/2020   15,000,000    15,000,000    15,000,000    2.2%
             15,000,000    15,000,000    15,000,000      
                              
Footprint Acquisition LLC  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)(17)  2/27/2020   5,250,102    5,250,102    5,250,102    0.8%
      Preferred Equity  (8.75% PIK)  2/27/2020   5,000,000    5,000,000    5,000,000    0.7%
      150.0 units of Common Stock(24)   2/27/2020   -    -    -    0.0
             10,250,102    10,250,102    10,250,102      
                              
Freedom Powersports LLC(7)(9)  Automotive  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)(18)  9/26/2019   10,200,000    10,200,000    10,292,447    1.5%
      Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)(6)  9/26/2019   -    -    43,504    0.0%
             10,200,000    10,200,000    10,335,951      
                              
Harrison Gypsum LLC (11)  Metals & Mining  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)(17)  12/21/2017   31,213,259    31,213,259    30,923,912    4.6%
             31,213,259    31,213,259    30,923,912      
                              
Heligear Acquisition Co.  Aerospace & Defense  Senior Secured First Lien Note (10.25% Cash)  10/15/2019   20,000,000    20,000,000    19,575,000    2.9%
             20,000,000    20,000,000    19,575,000      
                              
Help/Systems LLC  Services:  Business  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(17)  6/28/2020   15,000,000    15,000,000    15,185,850    2.2%
             15,000,000    15,000,000    15,185,850      
                              
Integra Telecom Holdings, Inc.(30)  Telecommunications  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.25% LIBOR Floor)(17)  2/22/2020   5,514,545    5,535,867    5,414,842    0.8%
             5,514,545    5,535,867    5,414,842      
                              
JD Norman Industries, Inc.  Metals & Mining  Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash)(17)  3/6/2019   23,100,000    23,100,000    23,562,000    3.5%
             23,100,000    23,100,000    23,562,000      
                              
Jordan Reses Supply Company LLC  Healthcare & Pharmaceuticals  Senior Secured Second Lien Term Loan (LIBOR + 11.00%, 1.00% LIBOR Floor)  4/24/2020   20,000,000    20,000,000    20,246,419    3.0%
             20,000,000    20,000,000    20,246,419      

 

F-8
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
Lighting Science Group Corporation  Containers, Packaging & Glass  Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(18)  2/19/2019   15,570,772    14,774,305    14,728,393    2.2%
      Warrants to purchase 2.38% of the outstanding equity  2/19/2019   -    955,680    614,558    0.1%
             15,570,772    15,729,985    15,342,951      
                              
Lucky Strike Entertainment, L.L.C.  Hotel, Gaming & Leisure  Senior Secured Second Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 2.00% PIK)(18)  12/24/2019   10,254,472    10,254,472    10,402,547    1.5%
             10,254,472    10,254,472    10,402,547      
                              
Lydell Jewelry Design Studio LLC (11)  Consumer goods:  Non-durable  Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 7.5% PIK, 1.50% LIBOR Floor)(17)  9/13/2018   13,895,158    13,658,886    11,442,385    1.7%
      Warrants to purchase 13.3% of the outstanding membership units  9/13/2018   -    -    -    0.0%
             13,895,158    13,658,886    11,442,385      
                              
LVI Services, Inc.  Construction & Building  Unsecured Debt (11.00% Cash)  10/24/2019   22,920,000    22,920,000    22,787,064    3.4%
             22,920,000    22,920,000    22,787,064      
                              
Marine Accessories Corporation  Consumer goods:  Non-durable  Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 1.00% PIK)(17)  11/26/2018   9,977,687    9,977,687    10,277,018    1.5%
             9,977,687    9,977,687    10,277,018      
                              
Merchant Cash and Capital LLC (7)(9)  Banking, Finance, Insurance & Real Estate  Senior Secured First Lien Delayed Draw (LIBOR + 8.00% Cash, 3.00% LIBOR Floor)(17)  3/4/2016   14,816,667    14,816,667    14,971,717    2.2%
      Senior Secured Second Lien Term Loan (12.00% Cash)  8/19/2016   15,000,000    15,000,000    15,128,100    2.2%
             29,816,667    29,816,667    30,099,817      
                              
Meridian Behavioral Health LLC (7)(9)  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan A (LIBOR + 11.50%, 2.50% LIBOR Floor)(18)  11/14/2016   10,289,141    10,059,917    10,367,030    1.5%
      Senior Secured First Lien Term Loan B (LIBOR + 11.50%, 2.50% LIBOR Floor)(18)  11/14/2016   6,600,000    6,600,000    6,653,747    1.0%
      Warrants to purchase 8% of the outstanding equity  11/14/2016   -    536,296    2,372,939    0.4%
             16,889,141    17,196,213    19,393,716      
                              
Miratech Intermediate Holdings, Inc. (7)(9)(11)  Automotive  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)  5/9/2019   14,769,231    14,769,231    14,769,674    2.2%
      Senior Secured First Lien Delayed Draw (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(6)  5/9/2019   -    -    443    0.0%
             14,769,231    14,769,231    14,770,117      

 

F-9
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
Modern VideoFilm, Inc. (10)  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor, 3.00% PIK)(17)  9/25/2017   15,158,682    14,066,794    4,899,483    0.7%
      Warrants to purchase 5.6% of the outstanding equity  9/25/2017   -    339,573    -    0.0%
             15,158,682    14,406,367    4,899,483      
                              
Momentum Telecom, Inc.  Telecommunications  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(17)  3/10/2019   9,667,982    9,667,982    9,694,569    1.4%
             9,667,982    9,667,982    9,694,569      
                              
Nation Safe Drivers Holdings, Inc.  Banking, Finance, Insurance & Real Estate  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)(18)  9/29/2020   35,278,846    35,278,846    35,041,160    5.2%
             35,278,846    35,278,846    35,041,160      
                              
Nielsen & Bainbridge LLC  Consumer goods:  Durable  Senior Secured Second Lien Term Loan (LIBOR + 9.25% Cash, 1.00% LIBOR Floor)(17)  8/15/2021   25,000,000    25,000,000    24,718,345    3.7%
             25,000,000    25,000,000    24,718,345      
                              
Northern Lights MIDCO LLC  Banking, Finance, Insurance & Real Estate  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.50% LIBOR Floor)  11/21/2019   4,641,250    4,641,250    4,717,970    0.7%
             4,641,250    4,641,250    4,717,970      
                              
Omnivere LLC  Services:  Business  Senior Secured First Lien Term Loan A (LIBOR + 12.00% Cash, 1.00% PIK)(18)  5/5/2019   24,581,538    23,824,020    19,580,500    2.9%
      Senior Secured First Lien Term Loan C (LIBOR + 12.00% Cash, 1.00% PIK)(18)  5/5/2019   3,192,294    3,192,294    2,542,831    0.4%
      Warrants to purchase outstanding equity (20)  5/5/2019    -    872,698    -    0.0%
             27,773,832    27,889,012    22,123,331      
                              
Oxford Mining Company, LLC (7)(9)  Metals & Mining  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)  12/31/2018   11,953,390    11,953,390    11,857,380    1.8%
             11,953,390    11,953,390    11,857,380      
                              
The Plastics Group, Inc.  Chemicals, Plastics & Rubber  Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)  2/28/2019   21,212,340    21,212,340    21,478,555    3.2%
             21,212,340    21,212,340    21,478,555      

 

F-10
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
Prestige Industries LLC  Services:  Business  Senior Secured Second Lien Term Loan (18.00% PIK)  1/31/2017   7,247,045    7,177,139    6,696,269    1.0%
      Warrants to purchase 0.63% of the outstanding common units  1/31/2017   -    151,855    -    0.0%
             7,247,045    7,328,994    6,696,269      
                              
Prince Mineral Holding Corp.(8)  Metals & Mining  Senior Secured First Lien Note (12.00%)  12/15/2019   6,800,000    6,739,650    6,579,000    1.0%
             6,800,000    6,739,650    6,579,000      
                              
RCS Management Corporation & Specialized Medical Services, Inc. (7)  Healthcare & Pharmaceuticals  Senior Secured Second Lien Term Loan ( LIBOR + 11.00% Cash, 1.50% LIBOR Floor, 0.50% PIK)(17)  2/29/2016   28,673,335    28,673,335    28,673,335    4.2%
             28,673,335    28,673,335    28,673,335      
                              
Red Skye Wireless LLC (7)(9)  Retail  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)  6/27/2018   26,815,799    26,815,799    27,085,180    4.0%
             26,815,799    26,815,799    27,085,180      
                              
Reddy Ice Corporation  Beverage, Food & Tobacco  Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)(17)  11/1/2019   17,000,000    17,000,000    15,787,220    2.3%
             17,000,000    17,000,000    15,787,220      
                              
Response Team Holdings, LLC  Construction & Building  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 2.00% LIBOR Floor)(17)  3/28/2019   25,407,711    25,407,711    25,788,827    3.8%
      Preferred Equity (12.00% PIK)  3/28/2019   5,226,084    4,860,289    5,179,781    0.8%
      Warrants to purchase 6.17% of the outstanding common units  3/28/2019   -    429,012    1,281,128    0.2%
             30,633,795    30,697,012    32,249,736      
                              
Safeworks LLC(11)  Capital Equipment  Unsecured Debt (12.00% Cash)  1/31/2020   15,000,000    15,000,000    15,137,740    2.2%
             15,000,000    15,000,000    15,137,740      
                              
Sendero Drilling Company LLC (7)(9)  Energy:  Oil & Gas  Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)(17)  3/18/2019   16,092,375    15,425,829    15,454,252    2.3%
      Warrants to purchase 5.52% of the outstanding common units  3/18/2019   -    793,523    3,181,628    0.5%
             16,092,375    16,219,352    18,635,880      
Seotowncenter, Inc.(11)  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(18)  9/11/2019   27,500,000    27,500,000    27,645,029    4.1%
      3,249.697 shares of Common Stock(13)  9/11/2019   -    500,000    633,253    0.1%
             27,500,000    28,000,000    28,278,282      
Stancor, Inc.  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 0.75% LIBOR Floor)(17)  8/19/2019   7,000,000    7,000,000    6,934,718    1.0%
      250,000 Class A Units(14)  8/19/2019   -    250,000    268,197    0.0%
             7,000,000    7,250,000    7,202,915      

 

F-11
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
T. Residential Holdings LLC  Banking, Finance, Insurance & Real Estate  Senior Secured First Lien Term Loan (12.00%)  3/28/2019   20,000,000    20,000,000    20,093,800    3.0%
             20,000,000    20,000,000    20,093,800      
                              
Taylored Freight Services LLC  Services:  Business  Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 2.00% PIK, 1.50% LIBOR Floor)(18)  11/1/2017   15,176,384    15,176,384    13,926,913    2.1%
             15,176,384    15,176,384    13,926,913      
Tempel Steel Company(8)  Metals & Mining  Senior Secured First Lien Note (12.00%)  8/15/2016   11,000,000    10,928,304    9,308,750    1.3%
             11,000,000    10,928,304    9,308,750      
                              
Tenere Acquisition Corp.(7)(9)  Chemicals, Plastics & Rubber  Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)  12/15/2017   11,245,656    11,245,656    11,510,569    1.7%
             11,245,656    11,245,656    11,510,569      
                              
Transtelco Inc.  Telecommunications  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor)(17)  11/19/2017   18,960,000    18,960,000    18,969,670    2.8%
             18,960,000    18,960,000    18,969,670      
                              
Untangle, Inc.  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash)(17)  4/18/2019   9,652,500    9,652,500    9,600,087    1.4%
             9,652,500    9,652,500    9,600,087      
                              
Velocity Pooling Vehicle LLC  Automotive  Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(17)  5/14/2022   24,000,000    20,858,305    20,841,266    3.1%
             24,000,000    20,858,305    20,841,266      
                              
Water Capital USA, Inc.(10)    Banking, Finance, Insurance & Real Estate  Senior Secured First Lien Term Loan (7.00% Cash, 7.00% PIK)  1/3/2015   27,947,299    27,298,353    -    0.0%
             27,947,299    27,298,353    -      
                              
Wheels Up Partners LLC (11)  Aerospace & Defense  Senior Secured First Lien Delayed Draw (LIBOR + 8.55% Cash, 1.00% LIBOR Floor)(18)  10/15/2021   18,932,579    18,932,579    19,254,622    2.9%
             18,932,579    18,932,579    19,254,622      
                              
Window Products, Inc.  Construction & Building  Senior Secured Second Lien Term Loan (LIBOR + 10.75% Cash, 1.00% LIBOR Floor)(18)  12/27/2019   14,000,000    14,000,000    14,280,000    2.1%
             14,000,000    14,000,000    14,280,000      
                              
Subtotal Non-Controlled / Non-Affiliated Investments  $1,232,233,304   $1,225,385,079   $1,164,170,162      
                              
Control Investments: (5)
                              
United Road Towing Inc.   Services:  Business  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash)(18)  2/21/2020   17,000,000    17,000,000    16,834,547    2.4%
      Preferred Equity Class C (8.00% PIK)  2/21/2020   18,802,789    17,466,376    18,681,135    2.8%
      Preferred Equity  Class C-1 (8.00% PIK)  2/21/2020   551,521    551,521    51,511    0.0%
      Preferred Equity  Class A-2 (8.00% PIK)  2/21/2020   4,804,103    4,472,380    1,316,353    0.2%
      65,809.73 Class B Common Units(15)  2/21/2020   -    1,098,096    629,010    0.1%
             41,158,413    40,588,373    37,512,556      
                              
Subtotal Control Investments           $41,158,413   $40,588,373   $37,512,556      

 

F-12
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
Affiliated Investments:
                              
US Multifamily, LLC(22)  Banking, Finance, Insurance & Real Estate  Senior Secured First Lien Term Loan (10.00% Cash)  9/10/2019   6,670,000    6,670,000    6,670,000    1.0%
      Preferred Equity - 33,300 Units(16)  9/10/2019   -    3,330,000    3,330,000    0.5%
             6,670,000    10,000,000    10,000,000      
                              
Subtotal Affiliated Investments  $6,670,000   $10,000,000   $10,000,000      
                              
Total Investments, March 31, 2015  $1,280,061,717   $1,275,973,452   $1,211,682,718    179.2%

 

 

(1) All of our investments are domiciled in the United States. Certain investments also have international operations.
(2) Par amount includes accumulated PIK interest and is net of repayments.
(3) Gross unrealized appreciation, gross unrealized depreciation, and net depreciation for federal income tax purposes totaled $34.4 million, $76.9 million and $42.5 million, respectively. The tax cost of investments is $1,254.1 million.
(4) Percentage is based on net assets of $676,094,647 as of March 31, 2015.
(5) Control Investments are defined by the Investment Company Act of 1940 ("1940 Act") as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
(6) The entire commitment was unfunded at March 31, 2015. As such, no interest is being earned on this investment.
(7) The investment has an unfunded commitment as of March 31, 2015 (See note 8).
(8) Securities are exempt from registration under Rule 144a of the Securities Act of 1933. These securities represent a fair value of $15.9 million and 2.3% of net assets as of March 31, 2015 and are considered restricted.
(9) Includes an analysis of the value of any unfunded loan commitments.
(10) The investment was on non-accrual status as of March 31, 2015.
(11) A portion of this investment was sold via a participation agreement (See note 3).
(12) 384.62 Units represents 1.55% ownership of INI Parent, Inc.
(13) 3,249.697 shares of Common Stock represents 2.917% ownership of Boostability Holdings, Inc.
(14) 250,000 Class A Units represents 0.882% ownership of Stancor, Inc.
(15) 65,809.73 Class B Common Units Represents 65.8% ownership of United Road Towing, Inc.
(16) 33,300 Units represents 18.167% ownership of US Multifamily, LLC.
(17) The interest rate on these loans is subject to a base rate plus 1 Month LIBOR, which at March 31, 2015 was 0.17%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 1 Month LIBOR rate at March 31, 2015, the prevailing rate in effect at March 31, 2015 was the base rate plus the LIBOR Floor.
(18) The interest rate on these loans is subject to a base rate plus 3 Month LIBOR, which at March 31, 2015 was 0.26%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 3 Month LIBOR rate at March 31, 2015, the prevailing rate in effect at March 31, 2015 was the base rate plus the LIBOR Floor.
(19) Investment consists of senior secured first lien term loan A (par and fair value of $8,617,939 and $7,066,710, respectively), senior secured first lien term loan B (par and fair value of $21,198,452 and $1,483,892, respectively) and senior secured first lien term loan - Willow Street Medical Laboratory LLC (par and fair value of $5,489,069 and $2,470,081, respectively).
(20) Warrants to purchase 12.50% of Omnivere Holding Company, LLC and 38.89% of Omnivere, LLC.
(21) 1,230,769 Units represents 4.17% ownership of DHSICO Electronic Distribution, Inc.
(22) Investment changed its name from AmveStar Holdings LLC during Q2 2015.
(23) Investment changed its name from Pegasus Solutions, Inc. during Q2 2015.
(24) 150 Units represents 15.0% of Footprint Holding Company, Inc.
(25) The investment earns 0.50% commitment fee on all unused commitment. At March 31, 2015, there was $3,047,619.05 of unused commitment.

 

 

See accompanying notes to consolidated financial statements.

 

F-13
 

 

Medley Capital Corporation

 

Consolidated Schedule of Investments

 

September 30, 2014

 

Company (1)  Industry (24)  Type of Investment  Maturity  Par
Amount (2)
   Cost (18)   Fair Value   % of  Net
Assets (3)
 
                          
Non-Controlled/ Non-Affiliated Investments:                             
                              
AAR Intermediate Holdings, LLC (11) 

Energy:  Oil & Gas

  Senior Secured First Lien Term Loan  (LIBOR + 12.00%, 1.00% LIBOR Floor) (20)  3/30/2019   36,831,683    34,324,994    34,323,923    4.7%
      Senior Secured First Lien Term Loan  (LIBOR + 12.00%, 1.00% LIBOR Floor) (20)  6/30/2015   3,168,317    3,168,317    3,168,317    0.4%
      Warrants to purchase 1.98% of outstanding company equity.  3/30/2019   -    2,507,760    2,507,760    0.3%
             40,000,000    40,001,071    40,000,000      
                              
Accupac, Inc.  Containers, Packaging & Glass  Senior Secured Second Lien Term Loan (12.29% Cash)  11/10/2018   10,000,000    10,000,000    10,000,000    1.4%
             10,000,000    10,000,000    10,000,000      
                              
Aderant North America, Inc. 

Services: Business

  Senior Secured Second Lien Term Loan (LIBOR + 8.75% , 1.25% LIBOR Floor) (19)  6/20/2019   4,550,000    4,550,000    4,614,519    0.6%
             4,550,000    4,550,000    4,614,519      
                              
Albertville Quality Foods, Inc. (11)  Beverage, Food & Tobacco  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap) (19)  10/31/2018   17,452,830    17,452,830    17,697,519    2.4%
             17,452,830    17,452,830    17,697,519      
                              
Allen Edmonds Corporation  Retail  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (19)  5/27/2019   20,000,000    20,000,000    20,206,400    2.8%
             20,000,000    20,000,000    20,206,400      

 

F-14
 

 

Company (1)  Industry (24)  Type of Investment  Maturity  Par
Amount (2)
   Cost (18)   Fair Value   % of  Net
Assets (3)
 
                              
Alora Pharmaceuticals LLC (11)  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (19)  9/13/2018   13,300,000    13,300,000    13,544,587    1.9%
             13,300,000    13,300,000    13,544,587      
                              
AM3 Pinnacle Corporation (9)  Media: Broadcasting & Subscription  Senior Secured First Lien Term Loan (10.00%)  10/22/2018   7,834,944    7,834,944    7,834,944    1.1%
             7,834,944    7,834,944    7,834,944      
                              
Amerit Fleet Services, Inc.  Services: Business  Senior Secured Second Lien Term Loan (LIBOR + 9.70% Cash, 1.00% LIBOR Floor, 1.50% PIK) (19)  12/21/2016   8,206,151    8,206,151    8,196,960    1.1%
             8,206,151    8,206,151    8,196,960      
                              
ARBOC Specialty Vehicles LLC  Automotive  Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor) (20)  3/21/2018   20,965,500    20,965,500    21,149,368    2.9%
             20,965,500    20,965,500    21,149,368      
                              
Aurora Flight Sciences Corporation  Aerospace & Defense  Senior Secured Second Lien Term Loan (11.25% Cash, 2.00% PIK)  3/16/2016   16,131,380    16,131,380    16,131,380    2.2%
             16,131,380    16,131,380    16,131,380      
                              
Autosplice, Inc. (9)  High Tech Industries  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.00% LIBOR Floor) (20)  6/30/2019   14,817,844    14,817,844    14,817,844    2.0%
             14,817,844    14,817,844    14,817,844      
                              
BayDelta Maritime LLC  Transportation: Cargo  Warrants to purchase 10% of the outstanding equity  6/30/2016   -    25,000    524,692    0.1%
             -    25,000    524,692      
                              
Be Green Manufacturing and Distribution Centers LLC (9)(12)  Containers, Packaging & Glass  Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor) (20)  12/13/2018   5,000,000    5,000,000    4,928,350    0.7%
      Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor) (20)  12/13/2018   1,791,667    1,791,667    1,731,958    0.2%
      Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor) (20)  12/13/2018   354,167    354,167    341,250    0.0%
      1.63% Partnership Interest in Be Green Packaging LLC      -    416,250    287,947    0.0%
             7,145,834    7,562,084    7,289,505      

 

F-15
 

 

Company (1)  Industry (24)  Type of Investment  Maturity  Par
Amount (2)
   Cost (18)   Fair Value   % of  Net
Assets (3)
 
                              
Brantley Transportation LLC (11)  Energy: Oil & Gas  Senior Secured First Lien Term Loan (12.00%)  8/2/2017   9,375,000    9,520,135    9,375,000    1.3%
             9,375,000    9,520,135    9,375,000      
                              
California Products Corporation  Chemicals, Plastics and Rubber  Senior Secured Second Lien Term Loan (13.00%)  5/27/2019   13,750,000    13,750,000    13,879,800    1.9%
             13,750,000    13,750,000    13,879,800      
                              
Calloway Laboratories, Inc. (10)(21)  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (17.00% PIK)  9/30/2015   31,800,948    28,573,477    15,484,032    2.1%
      Warrants to purchase 15.00% of the outstanding equity  9/30/2015   -    68,433    -    0.0%
             31,800,948    28,641,910    15,484,032      
                              
CP OPCO LLC  Services: Consumer  Senior Secured First Lien Term Loan (LIBOR + 6.75% Cash, 1.00% LIBOR Floor) (20)  9/30/2020   20,000,000    20,000,000    20,000,000    2.7%
             20,000,000    20,000,000    20,000,000      
                              
ContMid, Inc. (11)  Automotive  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (19)  10/25/2019   15,000,000    15,000,000    15,000,000    2.1%
             15,000,000    15,000,000    15,000,000      
                              
ConvergeOne Holdings Corporation  Telecommunications  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor) (20)  6/17/2021   12,500,000    12,378,218    12,458,750    1.7%
             12,500,000    12,378,218    12,458,750      
                              
Cornerstone Research & Development, Inc.  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor) (20)  4/28/2019   20,000,000    20,000,000    20,013,000    2.7%
      384.62 Units of Common Stock (13)  4/28/2019   -    400,000    346,272    0.0%
             20,000,000    20,400,000    20,359,272      
                              
Crow Precision Components LLC  Aerospace & Defense  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (19)  9/30/2019   10,000,000    10,000,000    10,000,000    1.4%
             10,000,000    10,000,000    10,000,000      
                              
Dispensing Dynamics International (8)  Consumer goods: Non-durable  Senior Secured Note (12.50%)  1/1/2018   2,800,000    2,759,638    3,031,000    0.4%
             2,800,000    2,759,638    3,031,000      

 

F-16
 

 

Company (1)  Industry (24)  Type of Investment  Maturity  Par
Amount (2)
   Cost (18)   Fair Value   % of  Net
Assets (3)
 
                              
DLR Restaurants LLC (9)(11)(12)  Hotels, Gaming & Leisure  Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)  4/18/2018   20,434,015    20,434,015    20,892,695    2.9%
      Unsecured Debt (12.00% Cash, 4.00% PIK)  4/18/2018   265,166    265,166    265,166    0.0%
             20,699,181    20,699,181    21,157,861      
                              
DreamFinders Homes LLC (9) (12)  Construction & Building  Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash) (20)  10/1/2018   12,296,397    12,145,238    12,470,916    1.7%
      Warrants to purchase 5% of outstanding equity  10/1/2018   -    180,000    1,748,827    0.2%
             12,296,397    12,325,238    14,219,743      
                              
Dynamic Energy Services International LLC  Energy: Oil & Gas  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (19)  3/6/2018   18,525,000    18,525,000    18,533,151    2.5%
             18,525,000    18,525,000    18,533,151      
                              
Essex Crane Rental Corp. (11)  Construction & Building  Senior Secured First Lien Term Loan (LIBOR + 10.50% Cash, 1.00% LIBOR Floor) (20)  5/13/2019   20,000,000    20,000,000    19,922,200    2.7%
             20,000,000    20,000,000    19,922,200      
                              
Exide Technologies (7)(10)  Services: Business  Senior Secured First Lien Note (8.63%)  2/1/2018   10,000,000    8,335,950    2,487,500    0.3%
             10,000,000    8,335,950    2,487,500      
                              
FC Operating LLC  Retail  Senior Secured First Lien Term Loan (LIBOR + 10.75% Cash, 1.25% LIBOR Floor) (20)  11/14/2017   10,350,000    10,350,000    9,854,959    1.4%
             10,350,000    10,350,000    9,854,959      
                              
Freedom Powersports LLC (9)  Automotive  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor) (20)  9/26/2019   10,200,000    10,200,000    10,200,000    1.4%
      Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash, 1.50% LIBOR Floor) (6)  9/26/2019   -    -    -    0.0%
             10,200,000    10,200,000    10,200,000      
                              
GSG Fasteners, LLC (11)  Consumer goods: Non-durable  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor) (19)  11/18/2018   8,662,500    8,662,500    8,835,750    1.2%
             8,662,500    8,662,500    8,835,750      

 

F-17
 

 

Company (1)  Industry (24)  Type of Investment  Maturity  Par
Amount (2)
   Cost (18)   Fair Value   % of  Net
Assets (3)
 
                              
Harrison Gypsum LLC (11)  Metals & Mining  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor) (19)  12/21/2017   25,459,294    25,459,294    25,078,678    3.4%
             25,459,294    25,459,294    25,078,678      
                              
HD Vest, Inc.  Banking, Finance, Insurance & Real Estate  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.25% LIBOR Floor) (19)  6/18/2019   8,750,000    8,750,000    8,925,000    1.2%
             8,750,000    8,750,000    8,925,000      
                              
Help/Systems LLC  Services: Business  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (19)  6/28/2020   15,000,000    15,000,000    15,208,500    2.1%
             15,000,000    15,000,000    15,208,500      
                              
HGDS Acquisition LLC  Services: Business  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 3.50% PIK) (19)  3/28/2018   10,101,921    10,101,921    10,019,085    1.4%
             10,101,921    10,101,921    10,019,085      
                              
Ingenio LLC (22)  Services: Consumer  Senior Secured First Lien Term Loan (11.25%)  3/14/2019   23,634,540    23,634,540    23,606,415    3.2%
             23,634,540    23,634,540    23,606,415      
                              
Integra Telecom  Telecommunications  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.25% LIBOR Floor) (19)  2/22/2020   12,132,000    12,154,991    12,374,640    1.7%
             12,132,000    12,154,991    12,374,640      
                              
Interface Security Systems (8)  Services: Consumer  Senior Secured First Lien Note (9.25%)  1/15/2018   3,333,000    3,333,000    3,424,659    0.5%
             3,333,000    3,333,000    3,424,659      
                              
JD Norman Industries, Inc.  Metals & Mining  Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash) (19)  3/6/2019   23,700,000    23,700,000    23,790,060    3.4%
             23,700,000    23,700,000    23,790,060      
                              
Lexmark Carpet Mills, Inc.  Consumer goods: Durable  Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor, 2.50% LIBOR Cap) (19)  9/30/2018   29,875,880    29,875,880    30,573,482    4.2%
             29,875,880    29,875,880    30,573,482      

 

F-18
 

 

Company (1)  Industry (24)  Type of Investment  Maturity  Par
Amount (2)
   Cost (18)   Fair Value   % of  Net
Assets (3)
 
                              
Lighting Science Group Corporation  Containers, Packaging & Glass  Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK) (20)  2/19/2019   15,415,114    14,544,245    14,985,957    2.1%
      Warrants to purchase 2.38% of the outstanding equity  2/19/2019   -    955,680    165,000    0.0%
             15,415,114    15,499,925    15,150,957      
                              
Linc Energy Finance (USA), Inc. (8)  Energy: Oil & Gas  Senior Secured First Lien Note (12.50%)  10/31/2017   3,500,000    3,413,382    3,765,335    0.5%
             3,500,000    3,413,382    3,765,335      
                              
Lucky Strike Entertainment, L.L.C.  Hotels, Gaming & Leisure  Senior Secured Second Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 2.00% PIK) (20)  12/24/2018   11,504,472    11,504,472    11,622,163    1.6%
             11,504,472    11,504,472    11,622,163      
                              
Lydell Jewelry Design Studio LLC (11)  Consumer goods: Non-durable  Senior Secured First Lien Term Loan (LIBOR + 10.50%, 1.50% LIBOR Floor) (19)  9/13/2018   13,072,000    13,072,000    12,312,125    1.7%
      Warrants to purchase 13.3% of the outstanding membership units  9/13/2018   -    -    -    0.0%
             13,072,000    13,072,000    12,312,125      
                              
Marine Accessories Corporation  Consumer goods: Non-durable  Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor, 1.00% PIK) (19)  11/26/2018   9,927,669    9,927,669    10,031,115    1.4%
             9,927,669    9,927,669    10,031,115