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EX-32.1 - EXHIBIT 32.1 - PhenixFIN Corpv416188_ex32-1.htm
EX-31.2 - EXHIBIT 31.2 - PhenixFIN Corpv416188_ex31-2.htm
EX-31.1 - EXHIBIT 31.1 - PhenixFIN Corpv416188_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 June 30, 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 August 10, 2015 the Registrant had 57,738,526 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 June 30, 2015 (unaudited) and September 30, 2014 F-1
       
    Consolidated Statements of Operations for the three and nine months ended June 30, 2015 and 2014 (unaudited) F-2
       
    Consolidated Statements of Changes in Net Assets for the nine months ended June 30, 2015 and 2014 (unaudited) F-3
       
    Consolidated Statements of Cash Flows for the nine months ended June 30, 2015 and 2014 (unaudited) F-4
       
    Consolidated Schedules of Investments as of June 30, 2015 (unaudited) and September 30, 2014 F-5
       
    Notes to Consolidated Financial Statements (unaudited) F-26
       
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 20
       
Item 3.   Defaults Upon Senior Securities 20
       
Item 4.   Other Information 20
       
Item 5.   Exhibits 20
       
SIGNATURES 24

 

 
 

  

Medley Capital Corporation 

Consolidated Statements of Assets and Liabilities 

 

   As of 
   June 30, 2015   September 30, 2014 
   (unaudited)     
ASSETS          
Investments at fair value          
Non-controlled/non-affiliated investments (amortized cost of $1,216,982,363 and $1,215,421,753, respectively)  $1,156,183,992   $1,185,859,238 
Controlled investments (amortized cost of $41,064,923 and $39,899,954, respectively)   37,999,642    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   1,204,183,634    1,245,538,291 
Cash and cash equivalents   36,239,851    36,731,488 
Interest receivable    11,810,847    13,095,503 
Deferred financing costs, net   11,127,058    11,688,339 
Fees receivable   1,474,458    1,930,079 
Other assets   801,394    651,035 
Receivable for dispositions and investments sold   4,282,342    14,289,610 
Deferred offering costs   306,844    222,104 
Total assets  $1,270,226,428   $1,324,146,449 
LIABILITIES          
Revolving credit facility payable  $181,700,000   $146,500,000 
Term loan payable   171,500,000    171,500,000 
Notes payable   103,500,000    103,500,000 
SBA debentures payable   130,000,000    100,000,000 
Payable for investments originated, purchased and participated   -    54,995,000 
Management and incentive fees payable (See note 6)   9,856,011    10,444,811 
Accounts payable and accrued expenses   2,216,562    2,330,244 
Interest and fees payable   1,902,482    2,096,171 
Administrator expenses payable (See note 6)   1,066,118    1,012,466 
Deferred tax liability   2,514,189    1,592,145 
Deferred revenue   320,431    265,493 
Due to affiliate   131,706    39,564 
Offering costs payable   -    13,674 
Total liabilities  $604,707,499   $594,289,568 
Commitments and Contingencies (See note 8)          
NET ASSETS          
Common stock, par value $.001 per share, 100,000,000 common shares authorized, 57,738,526 and 58,733,284 common shares issued and outstanding, respectively  $57,739   $58,733 
Capital in excess of par value   729,937,990    739,443,065 
Accumulated undistributed net investment income   20,384,776    21,673,794 
Accumulated net realized gain/(loss) from investments   (18,627,618)   - 
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes   (66,233,958)   (31,318,711)
Total net assets   665,518,929    729,856,881 
Total liabilities and net assets  $1,270,226,428   $1,324,146,449 
NET ASSET VALUE PER SHARE  $11.53   $12.43 

 

See accompanying notes to consolidated financial statements.

 

F-1
 

  

Medley Capital Corporation 

Consolidated Statements of Operations

 

 

   For the three months ended
June 30
   For the nine months ended
June 30
 
   2015   2014   2015   2014 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
INVESTMENT INCOME                    
Interest from investments                    
Non-controlled/Non-affiliated investments:                    
Cash  $30,443,298   $26,230,726   $94,065,811   $71,271,822 
Payment-in-kind   2,269,865    2,803,552    5,904,729    8,055,270 
Affiliated investments:                    
Cash   166,750    284,509    971,902    838,381 
Payment-in-kind   -    117,723    190,446    348,759 
Controlled investments:                    
Cash   398,725    -    1,193,301    - 
Payment-in-kind   491,349    -    1,442,480    - 
Total interest income   33,769,987    29,436,510    103,768,669    80,514,232 
Dividend income, net of provisional taxes (143,883 and 0, respectively)   107,434    -    107,434    - 
Interest from cash and cash equivalents    1,387    1,649    4,359    5,957 
Fee income (See note 9)    2,084,975    8,633,572    8,708,173    20,617,806 
Total investment income   35,963,783    38,071,731    112,588,635    101,137,995 
                     
EXPENSES                     
Base management fees (See note 6)   5,545,985    4,593,080    16,876,189    12,336,267 
Incentive fees (See note 6)   4,310,026    5,173,449    13,845,784    13,569,971 
Interest and financing expenses    6,160,394    5,348,298    18,765,192    14,502,205 
Administrator expenses (See note 6)   1,066,119    858,591    3,186,267    2,371,153 
Professional fees    904,659    710,628    2,276,691    1,867,640 
Directors fees   134,520    194,304    432,895    535,554 
Insurance   140,351    150,214    425,996    426,499 
General and administrative   461,625    349,373    1,396,484    1,248,823 
    Total expenses   18,723,679    17,377,937    57,205,498    46,858,112 
NET INVESTMENT INCOME    17,240,104    20,693,794    55,383,137    54,279,883 
                     
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:                     
Net realized gain/(loss) from investments    (9,010,451)   813,852    (18,627,618)   886,904 
Net unrealized appreciation/(depreciation) on investments    427,082    (4,820,079)   (34,137,086)   (11,580,576)
Net unrealized appreciation/(depreciation) on participations   -    (29,380)   -    124,315 
Change in provision for deferred taxes on unrealized gain on investments    (283,706)   (69,687)   (778,161)   (386,545)
Net gain/(loss) on investments   (8,867,075)   (4,105,294)   (53,542,865)   (10,955,902)
                     
NET INCREASE/DECREASE IN NET ASSETS RESULTING FROM OPERATIONS  $8,373,029   $16,588,500   $1,840,272   $43,323,981 
                     
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE  $0.14   $0.33   $0.03   $0.97 
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE  $0.30   $0.41   $0.95   $1.21 
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)   57,859,274    50,503,492    58,363,128    44,836,152 
                     
DIVIDENDS DECLARED PER COMMON SHARE  $0.30   $0.37   $0.97   $1.11 

  

 

See accompanying notes to consolidated financial statements.

 

F-2
 

  

Medley Capital Corporation 

Consolidated Statements of Changes in Net Assets

 

   For the nine months ended June 30 
   2015   2014 
   (unaudited)   (unaudited) 
INCREASE FROM OPERATIONS:          
Net investment income  $55,383,137   $54,279,883 
Net realized gain/(loss) from investments   (18,627,618)   886,904 
Net unrealized appreciation/(depreciation) on investments   (34,137,086)   (11,580,576)
Net unrealized appreciation/(depreciation) on participations   -    124,315 
Provision for deferred taxes on unrealized gain on investments   (778,161)   (386,545)
Net increase/(decrease) in net assets from operations   1,840,272    43,323,981 
SHAREHOLDER DISTRIBUTIONS:          
Distributions declared from net investment income   (56,672,155)   (51,295,478)
Net decrease in net assets from shareholder distributions   (56,672,155)   (51,295,478)
CAPITAL SHARE TRANSACTIONS:          
Issuance of common stock, net of underwriting costs (0 and 12,000,000 shares, respectively)   -    157,976,250 
Repurchase of common stock under stock repurchase program  (994,758 and 0 shares, respectively)   (9,506,069)   - 
Offering costs   -    (300,133)
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   (9,506,069)   159,369,284 
Total increase/(decrease) in net assets   (64,337,952)   151,397,787 
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  $20,384,776 and $15,169,028, respectively  $665,518,929   $661,232,242 
           
Net asset value per common share  $11.53   $12.65 
Common shares outstanding at end of period   57,738,526    52,283,712 

 

See accompanying notes to consolidated financial statements.

 

F-3
 

 

Medley Capital Corporation 

Consolidated Statements of Cash Flows 

 

   For the nine months ended June 30 
   2015   2014 
   (unaudited)   (unaudited) 
Cash flows from operating activities          
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS  $1,840,272   $43,323,981 
ADJUSTMENTS TO RECONCILE NET INCREASE/DECREASE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES:          
Investment increases due to payment-in-kind interest   (7,334,583)   (8,397,574)
Net amortization of premium/(discount) on investments   (1,349,196)   (490,301)
Amortization of deferred financing costs   1,807,210    1,592,209 
Net realized (gain)/loss from investments   18,627,618    (886,904)
Net deferred income taxes   922,044    386,545 
Net unrealized (appreciation)/depreciation on investments   34,137,086    11,580,576 
Net unrealized (appreciation)/depreciation on participations   -    (124,315)
Proceeds from sale and settlements of investments   223,292,550    278,008,120 
Purchases, originations and participations   (226,018,818)   (573,502,473)
(Increase)/decrease in operating assets:          
Interest receivable   1,284,656    (3,915,303)
Fees receivable   455,621    (195,000)
Other assets   (150,359)   (34,884)
Receivable for dispositions and investments sold   10,007,268    (15,175,048)
Increase/(decrease) in operating liabilities:          
Payable for investments purchased, originated and participated   (54,995,000)   15,842,912 
Management and incentive fees payable, net   (588,800)   2,866,875 
Accounts payable and accrued expenses   (113,682)   912,244 
Interest and fees payable   (193,689)   191,494 
Administrator expenses payable   53,652    157,383 
Deferred revenue   54,938    55,756 
Due to affiliate   92,142    (82,083)
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES   1,830,930    (247,885,790)
Cash flows from financing activities          
Proceeds from issuance of common stock, net of underwriting costs   -    159,669,417 
Repurchase of common stock under stock repurchase program   (9,506,069)   - 
Offering costs paid   (98,414)   (482,025)
Borrowings on debt   165,500,000    378,300,000 
Paydowns on debt   (100,300,000)   (225,717,114)
Financing costs paid   (1,245,929)   (4,033,465)
Payments of cash dividends   (56,672,155)   (51,295,478)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES   (2,322,567)   256,441,335 
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS   (491,637)   8,555,545 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   36,731,488    8,557,899 
CASH AND CASH EQUIVALENTS, END OF PERIOD  $36,239,851   $17,113,444 
Supplemental Information:          
Interest paid during the period  $17,094,090   $12,660,917 
Supplemental non-cash information          
Payment-in-kind interest income  $7,537,655   $8,404,029 
Net amortization of premium/(discount) on investments  $1,349,196   $490,301 
Amortization of deferred financing costs  $(1,807,210)  $(1,592,209)
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 

June 30, 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   32,134,161    30,380,947    29,697,093    4.5%
      Warrants to purchase 1.80% of outstanding company equity.  3/30/2019   -    2,274,480    236,717    0.0%
             32,134,161    32,655,427    29,933,810      
                              
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    5.0%
             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      

 

F-5
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (3)   Fair Value   % of
 Net Assets (4)
 
                          
Albertville Quality Foods, Inc. (11)  Beverages & Food  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    2.7%
             17,452,830    17,452,830    17,801,887      
                              
AM3 Pinnacle Corporation  Media:  Broadcasting & Subscription  Senior Secured First Lien Term Loan (10.00%)  10/22/2018   7,920,601    7,920,601    7,047,672    1.1%
             7,920,601    7,920,601    7,047,672      
                              
Aurora Flight Sciences Corporation  Aerospace & Defense  Senior Secured Second Lien Term Loan (11.25% Cash, 2.00% PIK)  3/16/2016   16,377,694    16,377,694    16,377,694    2.5%
             16,377,694    16,377,694    16,377,694      
                              
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    15,139,120    2.3%
             14,817,844    14,817,844    15,139,120      
                              
Backcountry.com, Inc.  Retail  Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor) (18)  6/30/2020   9,583,333    9,583,333    9,583,333    1.4%
             9,583,333    9,583,333    9,583,333      
                              
BayDelta Maritime LLC  Transportation: Cargo  Warrants to purchase 10% of the outstanding equity  6/30/2016   -    25,000    490,533    0.1%
             -    25,000    490,533      
                              
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    4,890,524    0.7%
      Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor) (18)  12/13/2018   3,416,667    3,416,667    3,347,024    0.5%
      Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor) (18)  12/13/2018   354,167    354,167    338,784    0.0%
      1.563% Partnership Interest in RCAF VI CIV XXIII, L.P.  12/13/2018   -    416,250    298,035    0.0%
             8,770,834    9,187,084    8,874,367      
                              
Black Angus Steakhouses, LLC (7)(9) 

Hotel, Gaming & Leisure

Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(17)  4/24/2020   8,162,946    8,162,946    8,162,946    1.2%
      Senior Secured First Lien Delayed Draw (LIBOR + 9.00%, 1.00% LIBOR Floor) (6)  4/24/2020   -    -    -    0.0%
      Revolver (LIBOR + 9.00%, 1.00% LIBOR Floor)  4/24/2020   -    -    -    0.0%
             8,162,946    8,162,946    8,162,946      

 

F-6
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (3)   Fair Value   % of
 Net Assets (4)
 
                          
Brantley Transportation LLC (11)  Energy:  Oil & Gas  Senior Secured First Lien Term Loan (12.00%)  8/2/2017   9,000,000    9,112,550    8,780,964    1.3%
             9,000,000    9,112,550    8,780,964      
                              
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   37,235,848    29,573,477    11,325,207    1.7%
      Warrants to purchase 15.00% of the outstanding equity  9/30/2015   -    68,433    -    0.0%
             37,235,848    29,641,910    11,325,207      
                              
Capstone Nutrition  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(18)  4/28/2019   20,033,903    20,033,903    20,167,329    3.0%
      384.62 Units of Common Stock (12)  4/28/2019   -    400,000    595,938    0.1%
             20,033,903    20,433,903    20,763,267      
                              
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    19,872,918    3.0%
             20,000,000    20,000,000    19,872,918      
                              
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    14,941,941    2.2%
             15,000,000    15,000,000    14,941,941      
                              
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    12,388,333    12,305,875    1.8%
             12,500,000    12,388,333    12,305,875      

 

F-7
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (3)   Fair Value   % of
 Net Assets (4)
 
                          
Crow Precision Components LLC  Aerospace & Defense  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor) (17)  9/30/2019   14,000,000    14,000,000    14,000,000    2.1%
      250 units of outstanding equity in Wingman Holdings, Inc.  9/30/2019   -    500,000    500,000    0.1%
             14,000,000    14,500,000    14,500,000      
                              
DHISCO Electronic Distribution, Inc. (7)(11)  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    31,058,164    4.7%
                              
      Senior Secured First Lien Term Loan B (LIBOR + 10.50% PIK)  2/10/2018   6,114,342    6,114,342    6,083,821    0.9%
                              
      Revolving Credit Facility (23)  5/10/2017   -    -    -    0.0%
      Equity - 1,230,769 Units (21)  2/10/2018   -    1,230,769    1,919,375    0.3%
             37,352,437    38,583,206    39,061,360      
                              
DLR Restaurants LLC (11)  Hotel, Gaming & Leisure  Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)  4/18/2018   23,364,723    23,364,723    23,274,301    3.5%
      Unsecured Debt (12.00% Cash, 4.00% PIK)  4/18/2018   273,319    273,319    272,614    0.0%
             23,638,042    23,638,042    23,546,915      
                              
DreamFinders Homes LLC (7)(9)  Construction & Building  Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)  10/1/2018   13,851,436    13,723,323    14,327,586    2.1%
      5,000 units of outstanding equity  10/1/2018   -    180,000    2,919,061    0.4%
             13,851,436    13,903,323    17,246,647      
                              
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   17,812,500    17,812,500    17,637,581    2.7%
             17,812,500    17,812,500    17,637,581      
                              
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    19,781,200    3.0%
             20,000,000    20,000,000    19,781,200      
                              
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    15,056,550    2.3%
             15,000,000    15,000,000    15,056,550      
                              
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    5,268,592    0.8%
      Preferred Equity  (8.75% PIK)  2/27/2020   5,040,104    5,040,104    5,040,356    0.8%
      150.0 units of Common Stock (22)  2/27/2020   -    -    -      
             10,290,206    10,290,206    10,308,948      

 

F-8
 

  

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (3)   Fair Value   % of
 Net Assets (4)
 
                          
Freedom Powersports LLC (7)(9)  Automotive  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor) (18)  9/26/2019   13,200,000    13,200,000    13,333,362    2.0%
      Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash, 1.50% LIBOR Floor) (6)  9/26/2019   -    -    18,186    0.0%
             13,200,000    13,200,000    13,351,548      
                              
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   30,874,629    30,874,629    30,580,394    4.6%
             30,874,629    30,874,629    30,580,394      
                              
Heligear Acquisition Co.  Aerospace & Defense  Senior Secured First Lien Note (10.25% Cash)  10/15/2019   20,000,000    20,000,000    20,026,062    3.0%
             20,000,000    20,000,000    20,026,062      
                              
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    15,150,000    2.3%
             15,000,000    15,000,000    15,150,000      
                              
JD Norman Industries, Inc.  Automotive  Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash) (17)  3/6/2019   22,800,000    22,800,000    22,878,395    3.4%
             22,800,000    22,800,000    22,878,395      
                              
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    20,364,745    3.1%
             20,000,000    20,000,000    20,364,745      
                              
Lighting Science Group Corporation  Containers, Packaging & Glass  Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK) (18)  2/19/2019   15,650,491    14,893,195    14,900,363    2.2%
      Warrants to purchase 2.36% of the outstanding equity  2/19/2019   -    955,680    413,786    0.1%
             15,650,491    15,848,875    15,314,149      
                              
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    10,446,128    1.6%
             10,254,472    10,254,472    10,446,128      
                              
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   14,163,187    13,970,592    11,663,101    1.8%
      Warrants to purchase 13.3% of the outstanding membership units  9/13/2018   -    -    -    0.0%
             14,163,187    13,970,592    11,663,101      

 

F-9
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (3)   Fair Value   % of
 Net Assets (4)
 
                          
LVI Services, Inc.  Construction & Building  Unsecured Debt (11.00% Cash)  10/24/2019   23,094,139    23,094,140    23,004,072    3.4%
             23,094,139    23,094,140    23,004,072      
                              
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   10,003,208    10,003,208    10,303,304    1.5%
             10,003,208    10,003,208    10,303,304      
                              
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   15,983,333    15,983,333    16,089,033    2.4%
      Senior Secured Second Lien Term Loan (12.00% Cash)  8/19/2016   15,000,000    15,000,000    15,000,000    2.3%
             30,983,333    30,983,333    31,089,033      
                              
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    10,090,186    10,343,262    1.6%
      Senior Secured First Lien Term Loan B (LIBOR + 11.50%, 2.50% LIBOR Floor) (18)  11/14/2016   6,600,000    6,600,000    6,637,346    1.0%
      Warrants to purchase 8% of the outstanding equity  11/14/2016   -    536,296    2,753,297    0.4%
             16,889,141    17,226,482    19,733,905      
                              
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    14,554,338    2.2%
      Senior Secured First Lien Delayed Draw (LIBOR + 9.00% Cash, 1.00% LIBOR Floor) (6)  5/9/2019   -    -    (214,892)   0.0%
             14,769,231    14,769,231    14,339,446      
                              
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   15,850,822    14,642,795    1,036,424    0.2%
      Warrants to purchase 5.6% of the outstanding equity  9/25/2017   -    339,573    -    0.0%
             15,850,822    14,982,368    1,036,424      
                              
Momentum Telecom, Inc.  Telecommunications  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(17)  3/10/2019   9,203,153    9,203,153    9,232,235    1.4%
             9,203,153    9,203,153    9,232,235      
                              
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    35,246,339    5.3%
             35,278,846    35,278,846    35,246,339      
                              
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    24,979,084    3.8%
             25,000,000    25,000,000    24,979,084      

 

F-10
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (3)   Fair Value   % of
 Net Assets (4)
 
                          
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   4,582,500    4,582,500    4,660,015    0.7%
             4,582,500    4,582,500    4,660,015      
                              
Omnivere LLC  Services:  Business  Senior Secured First Lien Term Loan A (LIBOR + 12.00% Cash, 1.00% PIK) (18)  5/5/2019   26,857,060    26,133,940    22,218,012    3.3%
      Senior Secured First Lien Term Loan C (LIBOR + 12.00% Cash, 1.00% PIK) (18)  5/5/2019   3,200,370    3,200,370    2,647,567    0.4%
      Warrants to purchase outstanding equity (20)  5/5/2019   -    872,698    -    0.0%
             30,057,430    30,207,008    24,865,579      
                              
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   11,920,264    11,920,264    11,825,775    1.8%
             11,920,264    11,920,264    11,825,775      
                              
The Plastics Group, Inc.  Chemicals, Plastics & Rubber  Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)  2/28/2019   21,319,761    21,319,761    21,212,523    3.2%
             21,319,761    21,319,761    21,212,523      
                              
Prestige Industries LLC  Services:  Business  Senior Secured Second Lien Term Loan (18.00% PIK)  11/1/2017   7,581,811    7,520,362    6,859,492    1.0%
      Warrants to purchase 0.63% of the outstanding common units  11/1/2017   -    151,855    27,671    0.0%
             7,581,811    7,672,217    6,887,163      
                              
Prince Mineral Holding Corp.(8)  Metals & Mining  Senior Secured First Lien Note (12.00%)  12/15/2019   6,800,000    6,742,088    6,375,000    1.0%
             6,800,000    6,742,088    6,375,000      
                              
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   28,709,590    28,709,590    28,709,590    4.3%
             28,709,590    28,709,590    28,709,590      
                              
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   26,115,799    26,115,799    26,319,848    4.0%
             26,115,799    26,115,799    26,319,848      
                              
Reddy Ice Corporation  Beverages & Food  Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor) (17)  11/1/2019   17,000,000    17,000,000    15,895,510    2.4%
             17,000,000    17,000,000    15,895,510      
                              
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   25,472,698    25,472,698    25,825,240    3.9%
      Preferred Equity (12.00% PIK)  3/28/2019   5,384,608    5,035,902    5,328,231    0.8%
      Warrants to purchase 6.17% of the outstanding common units  3/28/2019   -    429,012    1,717,905    0.3%
             30,857,306    30,937,612    32,871,376      
                              
Safeworks LLC(11)  Capital Equipment  Unsecured Debt (12.00% Cash)  1/31/2020   15,000,000    15,000,000    15,084,913    2.3%
             15,000,000    15,000,000    15,084,913      

 

F-11
 

  

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (3)   Fair Value   % of
 Net Assets (4)
 
                          
Sendero Drilling Company LLC (9)  Energy:  Oil & Gas  Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash) (17)  3/18/2019   13,270,441    12,636,877    13,247,217    2.0%
      Warrants to purchase 5.52% of the outstanding common units  3/18/2019   -    793,523    3,874,430    0.6%
             13,270,441    13,430,400    17,121,647      
                              
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    27,684,804    4.2%
      3,249.697 shares of Common Stock (13)  9/11/2019   -    500,000    1,027,132    0.2%
             27,500,000    28,000,000    28,711,936      
                              
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    6,952,140    1.0%
      263,814.43 Class A Units (14)  8/19/2019   -    250,000    258,977    0.0%
             7,000,000    7,250,000    7,211,117      
                              
T. Residential Holdings LLC  Banking, Finance, Insurance & Real Estate  Senior Secured First Lien Term Loan (12.00%)  3/28/2019   19,750,000    19,750,000    19,750,000    3.0%
             19,750,000    19,750,000    19,750,000      
                              
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   15,252,458    15,252,458    14,107,456    2.1%
             15,252,458    15,252,458    14,107,456      
                              
Tempel Steel Company (8)  Metals & Mining  Senior Secured First Lien Note (12.00%)  8/15/2016   11,000,000    10,940,383    10,436,250    1.5%
             11,000,000    10,940,383    10,436,250      
                              
Tenere Acquisition Corp. (7)(9)  Chemicals, Plastics & Rubber  Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)  12/15/2017   11,302,605    11,302,605    11,568,657    1.7%
             11,302,605    11,302,605    11,568,657      

 

F-12
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (3)   Fair Value   % of
 Net Assets (4)
 
                          
Transtelco Inc.  Telecommunications  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor) (17)  11/19/2017   18,912,000    18,912,000    18,893,844    2.8%
             18,912,000    18,912,000    18,893,844      
                              
Untangle, Inc.  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash) (17)  4/18/2019   9,590,000    9,590,000    9,544,543    1.4%
             9,590,000    9,590,000    9,544,543      
                              
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    20,931,789    20,667,381    3.1%
             24,000,000    20,931,789    20,667,381      
                              
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   28,436,377    27,298,353    -    0.0%
             28,436,377    27,298,353    -      
                              
Watermill-QMC Midco, Inc.  Automotive  Senior Secured First Lien Term Loan (12.00% Cash, 1.00% PIK)   6/30/2020   15,506,956    15,506,956    15,506,956    2.3%
      1.3% Partnership Interest in Watermill-QMC Midco Inc.   6/30/2020    -    295,362    295,362    0.0%
             15,506,956    15,802,318    15,802,318      
                              
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   18,589,157    18,589,157    19,017,452    2.9%
             18,589,157    18,589,157    19,017,452      
                              
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    14,140,000    2.1%
             14,000,000    14,000,000    14,140,000      
                              
Subtotal Non-Controlled / Non-Affiliated Investments  $1,224,753,722   $1,216,982,363   $1,156,183,992      
                              
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    16,949,283    2.5%
      Preferred Equity Class C (8.00% PIK)  2/21/2020   18,802,789    17,466,376    18,861,642    2.8%
      Preferred Equity  Class C-1 (8.00% PIK)  2/21/2020   933,305    933,305    55,663    0.0%
      Preferred Equity  Class A-2 (8.00% PIK)  2/21/2020   4,898,869    4,567,146    1,422,441    0.2%
      65,809.73 Class B Common Units (15)  2/21/2020   -    1,098,096    710,613    0.1%
             41,634,963    41,064,923    37,999,642      
                              
Subtotal Control Investments         $41,634,963   $41,064,923   $37,999,642      

 

F-13
 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost (3)   Fair Value   % of
 Net Assets (4)
 
                          
Affiliated Investments:                        
                              
US Multifamily, LLC  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, June 30, 2015     $1,273,058,685   $1,268,047,286   $1,204,183,634    180.9%

  

 

(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 $36.4 million, $78.9 million and $42.5 million, respectively. The tax cost of investments is $1,246.7 million.
(4) Percentage is based on net assets of $665,518,929 as of June 30, 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 June 30, 2015. As such, no interest is being earned on this investment.
(7) The investment has an unfunded commitment as of June 30, 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 $16.8 million and 2.5% of net assets as of June 30, 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 June 30, 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 Cornerstone Research & Development Inc.
(13) 3,249.697 shares of Common Stock represents 2.917% ownership of Boostability Holdings, Inc.
(14) 263,814.43 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 June 30, 2015 was 0.18%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 1 Month LIBOR rate at June 30, 2015, the prevailing rate in effect at June 30, 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 June 30, 2015 was 0.28%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 3 Month LIBOR rate at June 30, 2015, the prevailing rate in effect at June 30, 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 $9,384,823 and $7,977,098, respectively), senior secured first lien term loan B (par and fair value of $22,122,646 and $884,906, respectively) and senior secured first lien term loan - Willow Street Medical Laboratory LLC (par and fair value of $5,728,379 and $2,463,203, 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 Pegasus Solutions, Inc.
(22) 150 Units represents 15.0% of Footprint Holding Company, Inc.
(23) The investment earns 0.50% commitment fee on all unused commitment. At June 30, 2015, there was $3,047,619.05 of unused commitment.

 

See accompanying notes to consolidated financial statements.

 

F-14
 

  

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)  Beverages & Food  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-15
 

 

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  12/13/2018   -    416,250    287,947    0.0%
             7,145,834    7,562,084    7,289,505      

 

F-16
 

 

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-17
 

 

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-18
 

 

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-19
 

 

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