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.

 

 

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.

 

 

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.

 

 

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.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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