Attached files

file filename
EX-21.1 - EXHIBIT 21.1 - PhenixFIN Corpv429374_ex21-1.htm
EX-31.1 - EXHIBIT 31.1 - PhenixFIN Corpv429374_ex31-1.htm
EX-31.2 - EXHIBIT 31.2 - PhenixFIN Corpv429374_ex31-2.htm
EX-32.1 - EXHIBIT 32.1 - PhenixFIN Corpv429374_ex32-1.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 December 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:

 

Title of Each Class   Name of Each Exchange on Which Registered
     
Common Stock, par value $0.001 per share   The New York Stock Exchange
7.125% Notes due 2019   The New York Stock Exchange

6.500% Notes due 2021

 

The New York Stock Exchange

6.125% Notes due 2023   The New York Stock Exchange

 

Securities registered pursuant to Section 12(g) of the Act: None

 

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 February 5, 2016 the Registrant had 55,845,703 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 December 31, 2015 (unaudited) and September 30, 2015 F-1
     
  Consolidated Statements of Operations for the three months ended December 31, 2015 and 2014 (unaudited) F-2
     
  Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2015 and 2014 (unaudited) F-3
     
  Consolidated Statements of Cash Flows for the three months ended December 31, 2015 and 2014 (unaudited) F-4
     
  Consolidated Schedules of Investments as of December 31, 2015 (unaudited) and September 30, 2015 F-5
     
  Notes to Consolidated Financial Statements (unaudited) F-24
     
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 19
     
SIGNATURES   23

 

 

 

 

Medley Capital Corporation 

 

Consolidated Statements of Assets and Liabilities

 

   As of 
   December 31, 2015   September 30, 2015 
   (unaudited)     
ASSETS          
Investments at fair value          
Non-controlled/non-affiliated investments (amortized cost of $1,098,861,920 and $1,175,785,384, respectively)  $1,012,558,424   $1,131,893,787 
Controlled investments (amortized cost of $122,734,732 and $86,755,896 respectively)   92,565,318    74,198,202 
Affiliated investments (amortized cost of $10,000,000 and $10,000,000, respectively)   10,000,000    10,000,000 
Total investments at fair value   1,115,123,742    1,216,091,989 
Cash and cash equivalents   24,113,304    15,714,256 
Deferred financing costs, net   15,258,251    13,127,630 
Interest receivable   8,718,789    9,542,547 
Fees receivable   1,976,108    1,389,634 
Receivable for dispositions and investments sold   1,143,215    578,868 
Other assets   436,318    556,285 
Deferred offering costs   327,053    208,477 
Total assets  $1,167,096,780   $1,257,209,686 
LIABILITIES          
Revolving credit facility payable  $89,200,000   $192,700,000 
Term loan payable   174,000,000    174,000,000 
Notes payable   174,262,825    103,500,000 
SBA debentures payable   150,000,000    150,000,000 
Management and incentive fees payable (See note 6)   9,263,227    9,962,534 
Interest and fees payable   2,591,837    1,313,931 
Deferred tax liability   2,021,973    1,797,356 
Accounts payable and accrued expenses   1,475,599    2,503,442 
Administrator expenses payable (See note 6)   917,681    1,000,846 
Deferred revenue   430,410    402,029 
Due to affiliate   218,230    109,164 
Total liabilities  $604,381,782   $637,289,302 
Commitments (See note 8)          
NET ASSETS          
Common stock, par value $0.001 per share, 100,000,000 common shares authorized, 56,193,803 and 56,337,152 common shares issued and outstanding, respectively  $56,194   $56,337 
Capital in excess of par value   717,140,810    718,240,597 
Accumulated undistributed net investment income   19,116,562    20,351,831 
Accumulated net realized gain/(loss) from investments   (55,247,568)   (60,625,616)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes   (118,351,000)   (58,102,765)
Total net assets   562,714,998    619,920,384 
Total liabilities and net assets  $1,167,096,780   $1,257,209,686 
NET ASSET VALUE PER SHARE  $10.01   $11.00 

 

 

See accompanying notes to consolidated financial statements.

 

 F-1 

 

 

Medley Capital Corporation

 

Consolidated Statements of Operations

 

   For the three months ended December 31 
   2015   2014 
   (unaudited)   (unaudited) 
INVESTMENT INCOME:          
Interest from investments          
    Non-controlled/non-affiliated investments:          
         Cash  $28,126,021   $32,440,714 
         Payment-in-kind   1,222,112    1,850,728 
    Affiliated investments:          
         Cash   166,750    464,552 
         Payment-in-kind   -    122,079 
    Controlled investments:          
         Cash   855,626    401,153 
         Payment-in-kind   995,956    484,203 
             Total interest income   31,366,465    35,763,429 
Interest from cash and cash equivalents    2,235    1,645 
Fee income (See note 9)    3,058,627    4,083,857 
    Total investment income   34,427,327    39,848,931 
           
EXPENSES:          
Base management fees (See note 6)   5,346,758    5,784,178 
Incentive fees (See note 6)   3,916,469    5,097,508 
Interest and financing expenses   6,970,085    6,356,502 
Administrator expenses (See note 6)   916,377    1,021,811 
General and administrative   709,992    349,848 
Professional fees   632,521    532,692 
Insurance   135,409    142,823 
Directors fees   133,841    173,536 
    Total expenses   18,761,452    19,458,898 
NET INVESTMENT INCOME    15,665,875    20,390,033 
           
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:           
Net realized gain/(loss) from investments    5,378,048    (216,584)
Net unrealized appreciation/(depreciation) on investments    (60,023,619)   (38,700,337)
Change in provision for deferred taxes on unrealized gain on investments    (224,616)   210,950 
    Net gain/(loss) on investments   (54,870,187)   (38,705,971)
           
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $(39,204,312)  $(18,315,938)
           
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE  $(0.70)  $(0.31)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE  $0.28   $0.35 
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)   56,300,067    58,733,284 
           
DIVIDENDS DECLARED PER COMMON SHARE  $0.30   $0.37 

 

 

See accompanying notes to consolidated financial statements.

 

 F-2 

 

 

Medley Capital Corporation

 

Consolidated Statements of Changes in Net Assets

 

 

   For the three months ended December 31 
   2015   2014 
   (unaudited)   (unaudited) 
OPERATIONS:          
Net investment income  $15,665,875   $20,390,033 
Net realized gain/(loss) from investments   5,378,048    (216,584)
Net unrealized appreciation/(depreciation) on investments   (60,023,619)   (38,700,337)
Change in provision for deferred taxes on unrealized gain on investments   (224,616)   210,950 
    Net increase/(decrease) in net assets from operations   (39,204,312)   (18,315,938)
SHAREHOLDER DISTRIBUTIONS:          
Distributions from net investment income   (16,901,142)   (21,731,314)
    Net decrease in net assets from shareholder distributions   (16,901,142)   (21,731,314)
CAPITAL SHARE TRANSACTIONS:          
Repurchase of common stock under stock repurchase program  (143,349 and 0 shares, respectively)   (1,099,932)   - 
    Net increase/(decrease) in net assets from common share transactions   (1,099,932)   - 
    Total increase/(decrease) in net assets   (57,205,386)   (40,047,252)
Net assets at beginning of period   619,920,384    729,856,881 
Net assets at end of period including accumulated undistributed net investment income of $19,116,562 and $20,332,513, respectively  $562,714,998   $689,809,629 
           
Net asset value per common share  $10.01   $11.74 
Common shares outstanding at end of period   56,193,803    58,733,284 

 

 

See accompanying notes to consolidated financial statements.

 

 F-3 

 

 

Medley Capital Corporation

 

Consolidated Statements of Cash Flows

 

   For the three months ended December 31 
   2015   2014 
   (unaudited)   (unaudited) 
Cash flows from operating activities          
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS  $(39,204,312)  $(18,315,938)
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   (3,817,899)   (2,082,905)
Net amortization of premium/(discount) on investments   (229,653)   (387,216)
Amortization of deferred financing costs   788,924    599,148 
Net realized (gain)/loss from investments   (5,378,048)   216,584 
Net deferred income taxes   224,616    (210,950)
Net unrealized (appreciation)/depreciation on investments   60,023,619    38,700,337 
Proceeds from sale and settlements of investments   97,056,910    98,691,113 
Purchases, originations and participations   (46,686,682)   (112,342,683)
(Increase)/decrease in operating assets:          
Interest receivable   823,758    136,556 
Fees receivable   (586,474)   753,477 
Other assets   119,967    137,961 
Receivable for dispositions and investments sold   (564,347)   6,638,891 
Increase/(decrease) in operating liabilities:          
Payable for investments purchased, originated and participated   -    (54,995,000)
Management and incentive fees payable, net   (699,307)   436,875 
Accounts payable and accrued expenses   (1,027,843)   (122,265)
Interest and fees payable   1,277,906    (252,885)
Administrator expenses payable   (83,165)   9,345 
Deferred revenue   28,381    54,774 
Due to affiliate   109,066    (18,672)
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES   62,175,417    (42,353,453)
Cash flows from financing activities          
Repurchase of common stock under stock repurchase program   (1,099,932)   - 
Offering costs paid   (118,576)   (32,367)
Borrowings on debt   83,762,825    69,500,000 
Paydowns on debt   (116,500,000)   - 
Financing costs paid   (2,919,544)   (300,000)
Payments of cash dividends   (16,901,142)   (21,731,314)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES   (53,776,369)   47,436,319 
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS   8,399,048    5,082,866 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   15,714,256    36,731,488 
CASH AND CASH EQUIVALENTS, END OF PERIOD  $24,113,304   $41,814,354 
Supplemental Information:          
Interest paid during the period  $4,883,873   $5,990,801 
Supplemental non-cash information:          
Payment-in-kind interest income  $2,218,068   $2,457,010 
Net amortization of premium/(discount) on investments  $229,653   $387,216 
Amortization of deferred financing costs  $(788,924)  $(599,148)

 

 

See accompanying notes to consolidated financial statements.

 

 F-4 

 

 

Medley Capital Corporation 

 

Consolidated Schedule of Investments 

 

December 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(12)  Energy:  Oil & Gas  Senior Secured First Lien Term Loan  (LIBOR + 14.00%, 1.00% LIBOR Floor)(10)(19)  3/30/2019   33,207,993    30,302,820    17,832,476    3.2%
      Warrants to purchase 2.51% of outstanding company equity  3/30/2019   -    2,274,480    -    0.0%
             33,207,993    32,577,300    17,832,476      
                              
Accupac, Inc.  Containers, Packaging & Glass  Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor) (18)  3/20/2020   31,000,000    31,000,000    31,000,000    5.5%
             31,000,000    31,000,000    31,000,000      
                              
Advanced Diagnostic Holdings, LLC  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (LIBOR + 8.75% Cash, 0.875% LIBOR Floor) (19)  12/11/2020   15,554,250    15,554,250    15,554,250    2.8%
             15,554,250    15,554,250    15,554,250      
                              
AESC Holding Corp, Inc.  Retail  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(18)  5/27/2019   20,000,000    20,000,000    20,000,000    3.6%
             20,000,000    20,000,000    20,000,000      
                              
Albertville Quality Foods, Inc. (12)  Beverages & Food  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap)(18)  10/31/2018   17,343,750    17,343,750    17,413,819    3.1%
             17,343,750    17,343,750    17,413,819      
                              
Access Media Holdings, LLC  Media:  Broadcasting & Subscription  Senior Secured First Lien Term Loan (10.00%)  7/22/2020   7,632,573    7,632,573    7,632,573    1.4%
      Preferred Equity (12.00% PIK)  7/22/2020   1,652,475    1,652,475    577,845    0.1%
      16% of Common Equity of Newco  7/22/2020   -    -    -    0.0%
             9,285,048    9,285,048    8,210,418      
                              
American Covers, Inc.  Consumer Discretionary  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(19)  3/1/2021   10,000,000    10,000,000    10,000,000    1.8%
             10,000,000    10,000,000    10,000,000      
                              
Aurora Flight Sciences Corporation  Aerospace & Defense  Senior Secured Second Lien Term Loan (11.25% Cash, 2.00% PIK)  3/16/2016   16,545,825    16,545,825    16,545,825    2.9%
             16,545,825    16,545,825    16,545,825      
                              
Autosplice, Inc. (7)(9)  High Tech Industries  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.00% LIBOR Floor)(19)  6/30/2019   14,725,232    14,725,232    14,468,717    2.6%
             14,725,232    14,725,232    14,468,717      
                              
Backcountry.com, Inc.  Retail  Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(19)  6/30/2020   2,575,260    2,575,260    2,571,037    0.5%
             2,575,260    2,575,260    2,571,037      

 

 F-5 

 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
Net Assets (4)
 
                          
BayDelta Maritime LLC  Transportation:  Cargo  Warrants to purchase 10% of the outstanding equity  6/30/2016   -    25,000    612,366    0.1%
             -    25,000    612,366      
                              
Be Green Packaging, LLC (7)(9)  Containers, Packaging & Glass  Senior Secured First Lien Term Loan (LIBOR + 10.00%, 1.00% LIBOR Floor)(19)  12/13/2018   5,000,000    5,000,000    4,820,327    0.9%
      Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor)(19)  12/13/2018   3,416,667    3,416,667    3,319,608    0.6%
      Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor)(19)  12/13/2018   354,167    354,167    328,050    0.1%
      1.13% Partnership Interest in RCAF VI CIV XXIII, L.P.  12/13/2018   -    416,250    86,921    0.0%
             8,770,834    9,187,084    8,554,906      
                              
Black Angus Steakhouses, LLC (7)(9)  Hotel, Gaming & Leisure  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(18)  4/24/2020   8,060,268    8,060,268    8,023,202    1.4%
      Senior Secured First Lien Delayed Draw (LIBOR + 9.00%, 1.00% LIBOR Floor)  4/24/2020   -    -    -    0.0%
      Revolver (LIBOR + 9.00%, 1.00% LIBOR Floor)(27)  4/24/2020   357,143    357,143    357,077    0.1%
             8,417,411    8,417,411    8,380,279      
                              
Brantley Transportation LLC (12)  Energy:  Oil & Gas  Senior Secured First Lien Term Loan (12.00%)(10)  8/2/2017   9,183,928    9,088,925    4,884,647    0.9%
             9,183,928    9,088,925    4,884,647      
                              
Calloway Laboratories, Inc.  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (17.00% PIK) (10)  9/30/2016   40,347,859    29,573,477    -    0.0%
      Warrants to purchase 15.00% of the outstanding equity  9/30/2016   -    68,433    -    0.0%
             40,347,859    29,641,910    -      
                              
CP OPCO LLC  Services:  Consumer  Senior Secured First Lien Term Loan (LIBOR + 6.75% Cash, 1.00% LIBOR Floor)(19)  9/30/2020   17,000,000    17,000,000    17,000,000    3.0%
             17,000,000    17,000,000    17,000,000      
                              
ContMid Intermediate Inc.(12)  Automotive  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(18)  10/25/2019   23,000,000    23,000,000    22,785,732    4.0%
             23,000,000    23,000,000    22,785,732      
                              
ConvergeOne Holdings Corporation  Telecommunications  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)  6/17/2021   12,500,000    12,395,556    12,109,375    2.1%
             12,500,000    12,395,556    12,109,375      
                              
Crow Precision Components LLC  Aerospace & Defense  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)  9/30/2019   13,965,000    13,965,000    13,934,701    2.5%
      350 units of outstanding equity in Wingman Holdings, Inc.  9/30/2019   -    700,000    716,774    0.1%
             13,965,000    14,665,000    14,651,475      

 

 F-6 

 

  

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
Net Assets (4)
 
                          
DHISCO Electronic Distribution, Inc. (7)(12)  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    31,310,568    5.6%
      Senior Secured First Lien Term Loan B (10.50% PIK)  2/10/2018   6,448,036    6,448,036    6,436,078    1.1%
      Revolving Credit Facility (LIBOR + 9.00%, 1.50% LIBOR Floor)(24)  5/10/2017   -    -    -    0.0%
      Equity - 1,230,769 Units(22)  2/10/2018   -    1,230,769    2,624,130    0.5%
             37,686,131    38,916,900    40,370,776      
                              
DLR Restaurants LLC (12)  Hotel, Gaming & Leisure  Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)  4/18/2018   23,663,226    23,663,226    23,160,244    4.1%
      Unsecured Debt (12.00% Cash, 4.00% PIK)  4/18/2018   278,924    278,924    274,248    0.0%
             23,942,150    23,942,150    23,434,492      
                              
DreamFinders Homes LLC  Construction & Building  Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)  10/1/2018   11,417,103    11,305,812    11,219,587    2.0%
      5,000 common units represent 5% of the outstanding equity interest of Dream Finders Holdings, LLC  10/1/2018   -    180,000    1,783,179    0.3%
             11,417,103    11,485,812    13,002,766      
                              
Dynamic Energy Services International LLC  Energy:  Oil & Gas  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)  3/6/2018   17,337,500    17,337,500    16,799,344    3.0%
             17,337,500    17,337,500    16,799,344      
                              
Essex Crane Rental Corp. (12)  Construction & Building  Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor)(10)(19)  5/13/2019   20,930,727    20,460,116    3,558,642    0.6%
             20,930,727    20,460,116    3,558,642      
                              
FKI Security Group LLC (12)  Capital Equipment  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(19)  3/30/2020   14,812,500    14,812,500    14,479,811    2.6%
             14,812,500    14,812,500    14,479,811      
                              
Footprint Acquisition LLC  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)  2/27/2020   5,250,102    5,250,102    5,165,938    0.9%
      Preferred Equity  (8.75% PIK)  2/27/2020   5,383,267    5,383,267    4,790,100    0.9%
      150.0 units of Common Stock(23)  2/27/2020   -    -    -    0.0%
             10,633,369    10,633,369    9,956,038      
                              
Freedom Powersports LLC  Automotive  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)(19)  9/26/2019   15,000,000    15,000,000    14,970,707    2.7%
             15,000,000    15,000,000    14,970,707      

 

 F-7 

 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
Net Assets (4)
 
                          
Harrison Gypsum LLC (12)  Construction & Building  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)(18)  12/21/2018   55,546,997    55,546,997    54,383,843    9.7%
             55,546,997    55,546,997    54,383,843      
                              
Heligear Acquisition Co.  Aerospace & Defense  Senior Secured First Lien Note (10.25% Cash)  10/15/2019   20,000,000    20,000,000    20,278,885    3.6%
             20,000,000    20,000,000    20,278,885      
                              
JD Norman Industries, Inc.  Automotive  Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash)  3/6/2019   22,200,000    22,200,000    21,598,549    3.8%
             22,200,000    22,200,000    21,598,549      
                              
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    19,985,238    3.6%
             20,000,000    20,000,000    19,985,238      
                              
Lighting Science Group Corporation  Containers, Packaging & Glass  Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)  2/19/2019   15,810,280    15,136,429    14,957,157    2.6%
      Warrants to purchase 2.36% of the outstanding equity  2/19/2019   -    955,680    145,000    0.0%
             15,810,280    16,092,109    15,102,157      
                              
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)(19)  12/24/2019   10,254,472    10,254,472    10,036,360    1.8%
             10,254,472    10,254,472    10,036,360      
                              
Lydell Jewelry Design Studio LLC (12)  Consumer goods:  Non-durable  Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 7.50% PIK, 1.50% LIBOR Floor)(11)(18)  9/13/2018   14,711,807    14,269,868    5,889,898    1.0%
      Warrants to purchase 13.3% of the outstanding membership units  9/13/2018   -    -    -    0.0%
             14,711,807    14,269,868    5,889,898      
                              
Merchant Cash and Capital LLC  Banking, Finance, Insurance & Real Estate  Senior Secured First Lien Delayed Draw (LIBOR + 8.00% Cash, 3.00% LIBOR Floor)(18)  3/4/2016   17,500,000    17,500,000    17,510,500    3.1%
      Senior Secured Second Lien Term Loan (12.00% Cash)  8/19/2016   15,000,000    15,000,000    14,933,700    2.7%
             32,500,000    32,500,000    32,444,200      
                              
Miratech Intermediate Holdings, Inc. (12)  Automotive  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor, 2% PIK)(18)  5/9/2019   13,727,445    13,727,445    13,461,544    2.3%
             13,727,445    13,727,445    13,461,544      
                              
Momentum Telecom, Inc.  Telecommunications  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)  3/10/2019   9,032,218    9,032,218    9,155,146    1.6%
             9,032,218    9,032,218    9,155,146      

 

 F-8 

 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
Net Assets (4)
 
                          
Nation Safe Drivers Holdings, Inc.  Banking, Finance, Insurance & Real Estate  Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)(19)  9/29/2020   35,278,846    35,278,846    34,734,493    6.2%
             35,278,846    35,278,846    34,734,493      
                              
Nielsen & Bainbridge LLC  Consumer goods:  Durable  Senior Secured Second Lien Term Loan (LIBOR + 9.25% Cash, 1.00% LIBOR Floor)(18)  8/15/2021   25,000,000    25,000,000    24,213,499    4.3%
             25,000,000    25,000,000    24,213,499      
                              
Northern Lights MIDCO LLC  Banking, Finance, Insurance & Real Estate  Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.50% LIBOR Floor)  11/24/2019   4,523,750    4,523,750    4,588,252    0.8%
             4,523,750    4,523,750    4,588,252      
                              
NorthStar Group Services, Inc.  Construction & Building  Unsecured Debt (2.50% Cash, 15.50% PIK)  10/24/2019   23,658,218    23,658,218    23,658,218    4.2%
             23,658,218    23,658,218    23,658,218      
                              
Oxford Mining Company, LLC  Metals & Mining  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)  12/31/2018   20,288,028    20,288,028    19,383,238    3.4%
             20,288,028    20,288,028    19,383,238      
                              
The Plastics Group, Inc.  Chemicals, Plastics & Rubber  Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)  2/28/2019   21,537,432    21,537,432    20,926,846    3.7%
             21,537,432    21,537,432    20,926,846      
                              
Point.360 (7)  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash)(19)  7/8/2020   960,000    960,000    960,000    0.2%
      Equity - 479,283 Common Shares(25)  7/8/2020   -    129,406    421,769    0.1%
      Warrants to purchase 2.8% of the outstanding common shares (26)  7/8/2020   -    52,757    284,555    0.1%
             960,000    1,142,163    1,666,324      
                              
Prestige Industries LLC  Services:  Business  Senior Secured Second Lien Term Loan (18.00% PIK)  11/1/2017   7,506,654    7,463,220    6,889,757    1.2%
      Warrants to purchase 0.63% of the outstanding common units  11/1/2017   -    151,855    -    0.0%
             7,506,654    7,615,075    6,889,757      
                              
Prince Mineral Holding Corp.(8)  Wholesale  Senior Secured First Lien Note (11.50%)  12/15/2019   6,800,000    6,747,184    4,972,500    0.9%
             6,800,000    6,747,184    4,972,500      
                              
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)(18)  2/29/2016   30,785,260    30,785,260    30,785,260    5.5%
             30,785,260    30,785,260    30,785,260      
                              
Reddy Ice Corporation  Beverages & Food  Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)(18)  11/1/2019   17,000,000    17,000,000    13,165,425    2.3%
             17,000,000    17,000,000    13,165,425      

 

 F-9 

 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
Net Assets (4)
 
                          
Response Team Holdings, LLC  Construction & Building  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 2.00% LIBOR Floor)(18)  3/28/2019   26,936,514    26,936,514    27,164,397    4.8%
      Preferred Equity (12.00% PIK)  3/28/2019   5,718,078    5,405,897    5,445,440    1.0%
      Warrants to purchase 6.17% of the outstanding common units  3/28/2019   -    429,012    1,492,557    0.3%
             32,654,592    32,771,423    34,102,394      
                              
Safeworks LLC(12)  Capital Equipment  Unsecured Debt (12.00% Cash)  1/31/2020   15,000,000    15,000,000    14,972,225    2.7%
             15,000,000    15,000,000    14,972,225      
                              
Sendero Drilling Company LLC  Energy:  Oil & Gas  Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)  3/18/2019   12,782,816    12,219,116    12,874,085    2.3%
      Warrants to purchase 5.52% of the outstanding common units  3/18/2019   -    793,523    4,934,674    0.9%
             12,782,816    13,012,639    17,808,759      
                              
Seotowncenter, Inc.(12)  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)  9/11/2019   27,500,000    27,500,000    27,038,603    4.8%
      3,249.697 shares of Common Stock(14)  9/11/2019   -    500,000    389,126    0.1%
             27,500,000    28,000,000    27,427,729      
                              
Ship Supply Acquisition Corporation (7)  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)  7/31/2020   8,392,431    8,392,431    8,392,011    1.5%
      Revolver (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)(20)  7/31/2016   -    -    -    0.0%
             8,392,431    8,392,431    8,392,011      
                              
Stancor, Inc.  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 0.75% LIBOR Floor)(18)  8/19/2019   5,981,818    5,981,818    5,832,252    1.0%
      263,814.43 Class A Units(15)  8/19/2019   -    263,814    242,409    0.0%
             5,981,818    6,245,632    6,074,661      
                              
T. Residential Holdings LLC  Banking, Finance, Insurance & Real Estate  Senior Secured First Lien Term Loan (12.00%)  3/28/2019   19,250,000    19,250,000    19,100,557    3.4%
             19,250,000    19,250,000    19,100,557      
                              
Taylored Freight Services LLC  Services:  Business  Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 2.00% PIK, 1.50% LIBOR Floor)(19)  11/1/2017   15,258,183    15,258,183    14,091,390    2.5%
             15,258,183    15,258,183    14,091,390      
                              
Tenere Acquisition Corp.(7)(9)  Chemicals, Plastics & Rubber  Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)  12/15/2017   11,283,628    11,283,628    11,416,464    2.0%
             11,283,628    11,283,628    11,416,464      
                              
Transtelco Inc.  Telecommunications  Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.50% LIBOR Floor)(18)  11/19/2017   18,816,000    18,816,000    18,774,793    3.3%
             18,816,000    18,816,000    18,774,793      

 

 F-10 

 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
Net Assets (4)
 
                          
Untangle, Inc.  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash)  4/18/2019   9,465,000    9,465,000    9,506,196    1.7%
             9,465,000    9,465,000    9,506,196      
                              
Velocity Pooling Vehicle LLC  Automotive  Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(18)  5/14/2022   24,000,000    21,086,650    16,804,940    3.0%
             24,000,000    21,086,650    16,804,940      
                              
Watermill-QMC Midco, Inc.  Automotive  Senior Secured First Lien Term Loan (13.00% Cash)  6/30/2020   15,312,693    15,312,694    15,327,659    2.7%
      1.3% Partnership Interest in Watermill-QMC Midco Inc. (6)  6/30/2020   -    295,362    380,052    0.1%
             15,312,693    15,608,056    15,707,711      
                              
Wheels Up Partners LLC (12)  Aerospace & Defense  Senior Secured First Lien Delayed Draw (LIBOR + 8.55% Cash, 1.00% LIBOR Floor)(19)  10/15/2021   17,857,315    17,857,315    17,771,064    3.1%
             17,857,315    17,857,315    17,771,064      
                              
Window Products, Inc.  Construction & Building  Senior Secured Second Lien Term Loan (LIBOR + 10.75% Cash, 1.00% LIBOR Floor)(19)  12/27/2019   14,000,000    14,000,000    14,140,000    2.5%
             14,000,000    14,000,000    14,140,000      
                              
Subtotal Non-Controlled / Non-Affiliated Investments    $1,109,857,753   $1,098,861,920   $1,012,558,424      
                              
Control Investments:(5)                          
                              
Capstone Nutrition (12)  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash,  1.00% PIK, 1.00% LIBOR Floor)(19)  4/28/2019   20,564,336    20,564,336    15,217,609    2.7%
      Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash,  1.00% PIK, 1.00% LIBOR Floor)(19)  4/28/2019   4,372,497    4,372,497    3,235,648    0.6%
      7,463.4 Class B Shares, and 15,079.0 Class C Shares represent 33.0% ownership of Cornerstone Research & Development, Inc.  4/28/2019   -    12    -    0.0%
      384.62 Units of Common Stock (13)  4/28/2019   -    400,000    -    0.0%
             24,936,833    25,336,845    18,453,257      
                              
MCC Senior Loan Strategy JV I LLC  Multisector Holdings  Equity - 87.5% ownership of MCC Senior Loan Strategy JV I LLC      -    23,187,500    22,988,940    4.1%
             -    23,187,500    22,988,940      
                              
OmniVere LLC  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 12.00% Cash, 1.00% PIK)  5/5/2019   19,275,662    18,898,313    19,275,662    3.4%
      Unsecured Debt  (8.00% PIK) (10)  7/24/2025   13,238,728    12,479,195    5,106,550    0.9%
      Warrants to purchase outstanding equity (21)  5/5/2019   -    872,698    -    0.0%
             32,514,390    32,250,206    24,382,212      

 

 F-11 

 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
Net Assets (4)
 
                          
United Road Towing Inc.  Services:  Business  Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash)  2/21/2020   17,403,909    17,403,909    17,404,008    3.1%
      Preferred Equity Class C (8.00% PIK) (10)  2/21/2020   18,802,789    17,466,376    9,336,901    1.6%
      Preferred Equity  Class C-1 (8.00% PIK) (10)  2/21/2020   1,732,849    1,326,945    -    0.0%
      Preferred Equity  Class A-2 (8.00% PIK) (10)  2/21/2020   5,097,330    4,664,855    -    0.0%
      65,809.73 Class B Common Units(16)  2/21/2020   -    1,098,096    -    0.0%
             43,036,877    41,960,181    26,740,909      
                              
Subtotal Control Investments        $100,488,100   $122,734,732   $92,565,318      
                              
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    1.2%
      Preferred Equity - 33,300 Units(17)  9/10/2019   -    3,330,000    3,330,000    0.6%
             6,670,000    10,000,000    10,000,000      
                              
Subtotal Affiliated Investments        $6,670,000   $10,000,000   $10,000,000      
                              
Total Investments, December 31, 2015     $1,217,015,853   $1,231,596,652   $1,115,123,742    198.2%

 

(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 $22.3 million, $118.6 million and $96.3 million, respectively. The tax cost of investments is $1,211.7 million.

 

(4)Percentage is based on net assets of $562,714,998 as of December 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)12,711 Units represents 1.3% of partnership interest in Watermill-QMC Partners, LP.

 

(7)The investment has an unfunded commitment as of December 31, 2015 (See note 8).

 

(8)Securities are exempt from registration under Rule 144a of the Securities Act of 1933. This security represents a fair value of $5.0 million and 0.9% of net assets as of December 31, 2015 and is considered restricted.

 

(9)Includes an analysis of the value of any unfunded loan commitments.

 

(10)The investment was on non-accrual status as of December 31, 2015.

 

(11)The investment was on PIK non-accrual status as of December 31, 2015.

 

(12)A portion of this investment was sold via a participation agreement (See note 3).

 

(13)384.62 Units represents 1.55% ownership of Cornerstone Research & Development Inc.

 

(14)3,249.697 shares of Common Stock represents 2.917% ownership of Boostability Holdings, Inc.

 

(15)263,814.43 Class A Units represents 0.882% ownership of Stancor, Inc.

 

(16)65,809.73 Class B Common Units Represents 65.8% ownership of United Road Towing, Inc.

 

(17)33,300 Units represents 18.167% ownership of US Multifamily, LLC.

 

(18)The interest rate on these loans is subject to a base rate plus 1 Month London Interbank Offering Rate ("LIBOR"), which at December 31, 2015 was 0.24%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 1 Month LIBOR rate at December 31, 2015, the prevailing rate in effect at December 31, 2015 was the base rate plus the LIBOR Floor.

 

(19)The interest rate on these loans is subject to a base rate plus 3 Month LIBOR, which at December 31, 2015 was 0.41%. As the interest rate is subject to a minimum LIBOR Floor which was greater than the 3 Month LIBOR rate at December 31, 2015, the prevailing rate in effect at December 31, 2015 was the base rate plus the LIBOR Floor.

 

(20)The investment earns 0.50% commitment fee on all unused commitment. At December 31, 2015, there was $1,036,422 of unused commitment.

 

(21)5,055.56 Units of Common Stock, represents 50.56% of the outstanding equity.

 

(22)1,230,769 Units represents 4.17% ownership of Pegasus Solutions, Inc.

 

(23)150 Units represents 15.0% of Footprint Holding Company, Inc.

 

(24)The investment earns 0.50% commitment fee on all unused commitment. At December 31, 2015, there was $3,047,619 of unused commitment.

 

(25)479,283 Common Shares represents 3.8% of the outstanding common shares in Point.360.

 

(26)351,713 Units represents 2.8% of the outstanding common shares in Point.360.

 

(27)The investment earns 0.50% commitment fee on all unused commitment. At December 31, 2015, there was $535,714 of unused commitment.

 

See accompanying notes to consolidated financial statements.

 

 F-12 

 

  

Medley Capital Corporation 

 

Consolidated Schedule of Investments 

 

September 30, 2015 

 

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   31,966,906    30,302,821    22,503,872    3.6%
      Warrants to purchase 1.80% of outstanding company equity  3/30/2019   -    2,274,480    -    0.0%
             31,966,906    32,577,301    22,503,872      
                              
Accupac, Inc.  Containers, Packaging & Glass  Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor) (17)  3/20/2020   35,000,000    35,000,000    34,680,800    5.6%
             35,000,000    35,000,000    34,680,800      
                              
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    20,149,200    3.3%
             20,000,000    20,000,000    20,149,200      

 

 F-13 

 

 

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    17,580,585    2.8%
             17,452,830    17,452,830    17,580,585      
                              
Access Media Holdings, LLC (7)  Media:  Broadcasting & Subscription  Senior Secured First Lien Term Loan (10.00%)  7/22/2020   7,536,913    7,536,913    7,536,913    1.2%
      Preferred Equity (12.00% PIK)  7/22/2020   1,187,417    1,187,417    207,578    0.0%
      16% of Common Equity of Newco  7/22/2020   -    -    -    0.0%
             8,724,330    8,724,330    7,744,491      
                              
American Covers, Inc.  Consumer Discretionary  Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)  3/1/2021   10,000,000    10,000,000    10,000,000    1.6%
             10,000,000    10,000,000    10,000,000      
                              
Aurora Flight Sciences Corporation  Aerospace & Defense  Senior Secured Second Lien Term Loan
(11.25% Cash, 2.00% PIK)
  3/16/2016   16,461,545    16,461,545    16,461,545    2.7%
             16,461,545    16,461,545    16,461,545      
                              
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    14,773,761    2.4%
             14,817,844    14,817,844    14,773,761      
                              
Backcountry.com, Inc.  Retail  Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(18)  6/30/2020   2,583,333    2,583,333    2,583,333    0.4%
             2,583,333    2,583,333    2,583,333      
                              
BayDelta Maritime LLC  Transportation:  Cargo  Warrants to purchase 10% of the outstanding equity  6/30/2016   -    25,000    460,099    0.1%
             -    25,000    460,099      
                              
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    4,823,494    0.8%
      Senior Secured First Lien Delayed Draw (LIBOR + 10.00%, 1.00% LIBOR Floor)(18)  12/13/2018   3,416,667    3,416,667    3,294,714    0.5%
      Revolver (LIBOR + 10.00%, 1.00% LIBOR Floor)(18)  12/13/2018   354,167    354,167    327,425    0.1%
      1.13% Partnership Interest in RCAF VI CIV XXIII, L.P.  12/13/2018   -    416,250    230,894    0.0%
             8,770,834    9,187,084    8,676,527      
                              
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   8,111,607    8,111,607    8,111,607    1.3%
      Senior Secured First Lien Delayed Draw (LIBOR + 9.00%, 1.00% LIBOR Floor)  4/24/2020   -    -    -    0.0%
       Revolver (LIBOR + 9.00%, 1.00% LIBOR Floor)  4/24/2020   446,429    446,429    446,429    0.1%
             8,558,036    8,558,036    8,558,036      

 

 F-14 

 

 

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    9,100,912    6,332,324    1.0%
                              
             9,000,000    9,100,912    6,332,324      
                              
California Products Corporation  Chemicals, Plastics & Rubber  Senior Secured Second Lien Term Loan (13.00%)  5/27/2019   13,750,000    13,750,000    13,837,313    2.2%
                              
             13,750,000    13,750,000    13,837,313      
                              
Calloway Laboratories, Inc.  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (17.00% PIK) (10)  9/30/2016   38,860,511    29,573,477    -    0.0%
      Warrants to purchase 15.00% of the outstanding equity  9/30/2016   -    68,433    -    0.0%
                              
             38,860,511    29,641,910    -      
                              
Capstone Nutrition  Healthcare & Pharmaceuticals  Senior Secured First Lien Term Loan (LIBOR + 11.50% Cash,  1.00% PIK, 1.00% LIBOR Floor)(18)  4/28/2019   20,085,144    20,085,144    20,109,849    3.2%
      384.62 Units of Common Stock (12)  4/28/2019   -    400,000    731,126    0.1%
             20,085,144    20,485,144    20,840,975      
                              
CP OPCO LLC  Services:  Consumer  Senior Secured First Lien Term Loan (LIBOR + 6.75% Cash, 1.00% LIBOR Floor)(18)  9/30/2020   17,000,000    17,000,000    17,000,000    2.7%
             17,000,000    17,000,000    17,000,000      
                              
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    14,811,049    2.4%
             15,000,000    15,000,000    14,811,049      
                              
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    12,391,902    12,320,250    2.0%
             12,500,000    12,391,902    12,320,250      

 

 F-15 

 

 

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    13,998,510    2.3%
      250 units of outstanding equity in Wingman Holdings, Inc.  9/30/2019   -    500,000    589,147    0.1%
             14,000,000    14,500,000    14,587,657      
                              
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    31,479,253    5.1%
                              
      Senior Secured First Lien Term Loan B (10.50% PIK)  2/10/2018   6,278,067    6,278,067    6,301,164    1.0%
                              
      Revolving Credit Facility (LIBOR + 9.00%, 1.50% LIBOR Floor)(23)  5/10/2017   -    -    -    0.0%
      Equity - 1,230,769 Units(21)  2/10/2018   -    1,230,769    2,378,890    0.4%
             37,516,162    38,746,931    40,159,307      
                              
DLR Restaurants LLC (11)  Hotel, Gaming & Leisure  Senior Secured First Lien Term Loan (11.00% Cash, 2.50% PIK)  4/18/2018   23,512,686    23,512,686    23,226,501    3.7%
      Unsecured Debt (12.00% Cash, 4.00% PIK)  4/18/2018   276,092    276,092    272,037    0.0%
             23,788,778    23,788,778    23,498,538      
                              
DreamFinders Homes LLC (9)  Construction & Building  Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)  10/1/2018   14,091,194    13,971,357    14,140,514    2.3%
      5,000 units of outstanding equity  10/1/2018   -    180,000    1,929,761    0.3%
             14,091,194    14,151,357    16,070,275      
                              
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   17,575,000    17,575,000    17,042,829    2.7%
             17,575,000    17,575,000    17,042,829      
                              
Essex Crane Rental Corp. (11)  Construction & Building  Senior Secured First Lien Term Loan (LIBOR + 12.50% Cash, 1.00% LIBOR Floor)(18)  5/13/2019   20,000,000    20,000,000    19,325,800    3.1%
             20,000,000    20,000,000    19,325,800      
                              
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   14,906,250    14,906,250    14,616,174    2.4%
             14,906,250    14,906,250    14,616,174      
                              
Footprint Acquisition LLC  Services:  Business  Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)(17)  2/27/2020   5,250,102    5,250,103    5,151,828    0.8%
      Preferred Equity  (8.75% PIK)  2/27/2020   5,151,581    5,151,581    4,652,001    0.8%
      150.0 units of Common Stock(22)  2/27/2020   -    -    -    0.0%
             10,401,683    10,401,684    9,803,829      

 

 F-16 

 

 

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   10,200,000    10,200,000    10,268,663    1.7%
      Senior Secured First Lien Delayed Draw (LIBOR + 11.50% Cash, 1.50% LIBOR Floor)  9/26/2019   3,000,000    3,000,000    3,032,312    0.5%
             13,200,000    13,200,000    13,300,975      
                              
Harrison Gypsum LLC (11)  Metals & Mining  Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)(17)  12/21/2018   56,134,983    56,134,983    55,225,035    8.9%
             56,134,983    56,134,983    55,225,035      
                              
Heligear Acquisition Co.  Aerospace & Defense  Senior Secured First Lien Note (10.25% Cash)  10/15/2019   20,000,000    20,000,000    20,523,479    3.3%
             20,000,000    20,000,000    20,523,479      
                              
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    2.5%
             15,000,000    15,000,000    15,150,000      

  

 F-17 

 

 

Company (1)  Industry  Type of Investment  Maturity  Par Amount (2)   Cost(3)   Fair Value   % of
 Net Assets (4)
 
                          
JD Norman Industries, Inc.  Automotive  Senior Secured First Lien Term Loan (LIBOR + 10.25% Cash)(17)  3/6/2019   22,500,000    22,500,000    22,183,434    3.6%
             22,500,000    22,500,000    22,183,434      
                              
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    20,349,811    3.3%
             20,000,000    20,000,000    20,349,811      
                              
Lighting Science Group Corporation  Containers, Packaging & Glass  Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(18)  2/19/2019   15,730,619    15,014,318    15,055,776    2.4%