Attached files
| file | filename |
|---|---|
| EX-31.2 - EXHIBIT 31.2 - PROSPECT CAPITAL CORP | psec10-qq22016ex312.htm |
| EX-31.1 - EXHIBIT 31.1 - PROSPECT CAPITAL CORP | psec10-qq22016ex311.htm |
| EX-32.1 - EXHIBIT 32.1 - PROSPECT CAPITAL CORP | psec10-qq22016ex321.htm |
| EX-32.2 - EXHIBIT 32.2 - PROSPECT CAPITAL CORP | psec10-qq22016ex322.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý | 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 | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number: 814-00659
PROSPECT CAPITAL CORPORATION
(Exact name of Registrant as specified in its charter)
Maryland | 43-2048643 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
10 East 40th Street, 42nd Floor | |
New York, New York | 10016 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (212) 448-0702 | |
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). Yes o No o
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) | |||
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.
Class of Common Stock | Outstanding at February 9, 2016 | |
$0.001 par value | 355,711,135 | |
Table of Contents
Page | ||
PART I | FINANCIAL INFORMATION | |
PART II | OTHER INFORMATION | |
FORWARD-LOOKING STATEMENTS
This report contains information that may constitute “forward-looking statements.” Generally, the words “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to volume growth, share of sales and earnings per share growth, and statements expressing general views about future operating results—are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part II, “Item 1A. Risk Factors” and elsewhere in this report and in our Annual Report on Form 10-K for the year ended June 30, 2015, and those described from time to time in our future reports filed with the Securities and Exchange Commission.
1
PART I
Item 1. Financial Statements
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share and per share data)
December 31, 2015 | June 30, 2015 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Investments at fair value: | |||||||
Control investments (amortized cost of $2,006,363 and $1,894,644, respectively) | $ | 2,008,634 | $ | 1,974,202 | |||
Affiliate investments (amortized cost of $2,228 and $45,150, respectively) | 3,368 | 45,945 | |||||
Non-control/non-affiliate investments (amortized cost of $4,372,819 and $4,619,582, respectively) | 4,167,668 | 4,589,411 | |||||
Total investments at fair value (amortized cost of $6,381,410 and $6,559,376, respectively) | 6,179,670 | 6,609,558 | |||||
Cash and cash equivalents | 78,354 | 110,026 | |||||
Receivables for: | |||||||
Interest, net | 15,120 | 20,408 | |||||
Other | 2,473 | 2,885 | |||||
Prepaid expenses | 765 | 757 | |||||
Deferred financing costs | 53,990 | 54,420 | |||||
Total Assets | 6,330,372 | 6,798,054 | |||||
Liabilities | |||||||
Revolving Credit Facility (Notes 4 and 8) | 58,000 | 368,700 | |||||
Convertible Notes (Notes 5 and 8) | 1,089,500 | 1,239,500 | |||||
Public Notes (Notes 6 and 8) | 708,191 | 548,094 | |||||
Prospect Capital InterNotes® (Notes 7 and 8) | 894,125 | 827,442 | |||||
Commitments and Contingencies (Note 3) | — | — | |||||
Due to broker | — | 26,778 | |||||
Interest payable | 40,807 | 39,659 | |||||
Dividends payable | 29,616 | 29,923 | |||||
Due to Prospect Administration (Note 13) | 7,848 | 4,238 | |||||
Due to Prospect Capital Management (Note 13) | 57,182 | 2,550 | |||||
Accrued expenses | 5,167 | 3,408 | |||||
Other liabilities | 8,509 | 4,713 | |||||
Total Liabilities | 2,898,945 | 3,095,005 | |||||
Net Assets | $ | 3,431,427 | $ | 3,703,049 | |||
Components of Net Assets | |||||||
Common stock, par value $0.001 per share (1,000,000,000 common shares authorized; 355,411,712 and 359,090,759 issued and outstanding, respectively) (Note 9) | $ | 355 | $ | 359 | |||
Paid-in capital in excess of par (Note 9) | 3,955,406 | 3,975,672 | |||||
Accumulated overdistributed net investment income | (4,449 | ) | (21,077 | ) | |||
Accumulated net realized loss on investments and extinguishment of debt | (318,145 | ) | (302,087 | ) | |||
Net unrealized (depreciation) appreciation on investments | (201,740 | ) | 50,182 | ||||
Net Assets | $ | 3,431,427 | $ | 3,703,049 | |||
Net Asset Value Per Share (Note 16) | $ | 9.65 | $ | 10.31 | |||
See notes to consolidated financial statements.
2
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Investment Income | |||||||||||||||
Interest income: | |||||||||||||||
Control investments | $ | 51,429 | $ | 50,684 | $ | 103,373 | $ | 95,812 | |||||||
Affiliate investments | 11 | 1,004 | 896 | 1,841 | |||||||||||
Non-control/non-affiliate investments | 88,161 | 97,331 | 181,869 | 196,109 | |||||||||||
Structured credit securities | 46,902 | 39,795 | 91,668 | 79,192 | |||||||||||
Total interest income | 186,503 | 188,814 | 377,806 | 372,954 | |||||||||||
Dividend income: | |||||||||||||||
Control investments | 13,545 | 2,651 | 16,758 | 3,410 | |||||||||||
Affiliate investments | — | (651 | ) | — | 778 | ||||||||||
Non-control/non-affiliate investments | 1 | — | 3 | 22 | |||||||||||
Money market funds | — | 11 | — | 26 | |||||||||||
Total dividend income | 13,546 | 2,011 | 16,761 | 4,236 | |||||||||||
Other income: | |||||||||||||||
Control investments | 3,270 | 3,069 | 5,679 | 8,732 | |||||||||||
Affiliate investments | — | — | — | 226 | |||||||||||
Non-control/non-affiliate investments | 5,872 | 4,989 | 9,196 | 14,756 | |||||||||||
Total other income (Note 10) | 9,142 | 8,058 | 14,875 | 23,714 | |||||||||||
Total Investment Income | 209,191 | 198,883 | 409,442 | 400,904 | |||||||||||
Operating Expenses | |||||||||||||||
Investment advisory fees: | |||||||||||||||
Base management fee (Note 13) | 31,781 | 34,034 | 64,735 | 67,199 | |||||||||||
Income incentive fee (Note 13) | 25,224 | 22,831 | 48,034 | 46,447 | |||||||||||
Total investment advisory fees | 57,005 | 56,865 | 112,769 | 113,646 | |||||||||||
Interest and credit facility expenses | 42,205 | 42,244 | 84,162 | 85,158 | |||||||||||
Legal fees | 737 | 395 | 2,152 | 1,558 | |||||||||||
Valuation services | 400 | 459 | 863 | 909 | |||||||||||
Audit, compliance and tax related fees | 1,192 | 924 | 3,069 | 1,591 | |||||||||||
Allocation of overhead from Prospect Administration (Note 13) | 2,000 | 3,014 | 6,178 | 5,430 | |||||||||||
Insurance expense | 213 | 121 | 439 | 252 | |||||||||||
Directors’ fees | 94 | 94 | 188 | 188 | |||||||||||
Excise tax | 1,300 | 1,775 | 1,300 | 1,775 | |||||||||||
Other general and administrative expenses | 3,152 | 1,667 | 6,187 | 4,609 | |||||||||||
Total Operating Expenses | 108,298 | 107,558 | 217,307 | 215,116 | |||||||||||
Net Investment Income | 100,893 | 91,325 | 192,135 | 185,788 | |||||||||||
Net realized losses on investments | (5,318 | ) | (133,102 | ) | (7,453 | ) | (156,013 | ) | |||||||
Net change in unrealized (depreciation) appreciation on investments | (190,647 | ) | 127,747 | (251,922 | ) | 140,303 | |||||||||
Net realized and unrealized losses on investments | (195,965 | ) | (5,355 | ) | (259,375 | ) | (15,710 | ) | |||||||
Net realized losses on extinguishment of debt | (48 | ) | — | (63 | ) | — | |||||||||
Net (Decrease) Increase in Net Assets Resulting from Operations | $ | (95,120 | ) | $ | 85,970 | $ | (67,303 | ) | $ | 170,078 | |||||
Net (decrease) increase in net assets resulting from operations per share | $ | (0.27 | ) | $ | 0.24 | $ | (0.19 | ) | $ | 0.49 | |||||
Dividends declared per share | $ | (0.25 | ) | $ | (0.33 | ) | $ | (0.50 | ) | $ | (0.66 | ) | |||
See notes to consolidated financial statements.
3
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(in thousands, except share data)
(Unaudited)
Six Months Ended December 31, | |||||||
2015 | 2014 | ||||||
Operations | |||||||
Net investment income | $ | 192,135 | $ | 185,788 | |||
Net realized losses on investments | (7,453 | ) | (156,013 | ) | |||
Net change in unrealized (depreciation) appreciation on investments | (251,922 | ) | 140,303 | ||||
Net realized losses on extinguishment of debt | (63 | ) | — | ||||
Net (Decrease) Increase in Net Assets Resulting from Operations | (67,303 | ) | 170,078 | ||||
Distributions to Shareholders | |||||||
Distribution from net investment income | (177,942 | ) | (232,449 | ) | |||
Distribution of return of capital | — | — | |||||
Net Decrease in Net Assets Resulting from Distributions to Shareholders | (177,942 | ) | (232,449 | ) | |||
Common Stock Transactions | |||||||
Issuance of common stock, net of underwriting costs | — | 146,085 | |||||
Less: Offering costs from issuance of common stock | 118 | (488 | ) | ||||
Repurchase of common stock under stock repurchase program | (34,140 | ) | — | ||||
Value of shares issued through reinvestment of dividends | 7,645 | 7,669 | |||||
Net (Decrease) Increase in Net Assets Resulting from Common Stock Transactions | (26,377 | ) | 153,266 | ||||
Total (Decrease) Increase in Net Assets | (271,622 | ) | 90,895 | ||||
Net assets at beginning of period | 3,703,049 | 3,618,182 | |||||
Net Assets at End of Period | $ | 3,431,427 | $ | 3,709,077 | |||
Common Stock Activity | |||||||
Shares sold | — | 14,845,556 | |||||
Shares repurchased under stock repurchase program | (4,708,750 | ) | — | ||||
Shares issued through reinvestment of dividends | 1,029,703 | 777,928 | |||||
Net shares (repurchased) issued due to common stock activity | (3,679,047 | ) | 15,623,484 | ||||
Shares issued and outstanding at beginning of period | 359,090,759 | 342,626,637 | |||||
Shares Issued and Outstanding at End of Period | 355,411,712 | 358,250,121 | |||||
See notes to consolidated financial statements.
4
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share data)
(Unaudited)
Six Months Ended December 31, | |||||||
2015 | 2014 | ||||||
Operating Activities | |||||||
Net (decrease) increase in net assets resulting from operations | $ | (67,303 | ) | $ | 170,078 | ||
Net realized losses on extinguishment of debt | 63 | — | |||||
Net realized losses on investments | 7,453 | 156,013 | |||||
Net change in unrealized depreciation (appreciation) on investments | 251,922 | (140,303 | ) | ||||
Amortization of discounts and premiums, net | 40,627 | 37,332 | |||||
Accretion of discount on Public Notes (Note 6) | 98 | 117 | |||||
Amortization of deferred financing costs | 6,916 | 6,688 | |||||
Payment-in-kind interest | (4,140 | ) | (10,287 | ) | |||
Structuring fees | (6,906 | ) | (15,081 | ) | |||
Change in operating assets and liabilities: | |||||||
Payments for purchases of investments | (1,118,889 | ) | (1,384,542 | ) | |||
Proceeds from sale of investments and collection of investment principal | 1,259,821 | 1,086,884 | |||||
Decrease in interest receivable, net | 5,288 | 2,303 | |||||
Decrease (increase) in other receivables | 412 | (165 | ) | ||||
(Increase) decrease in prepaid expenses | (8 | ) | 1,899 | ||||
Decrease in due to broker | (26,778 | ) | — | ||||
Increase in interest payable | 1,148 | 3,316 | |||||
Increase in due to Prospect Administration | 3,610 | 1,810 | |||||
Increase in due to Prospect Capital Management | 54,632 | 56,933 | |||||
Increase (decrease) in accrued expenses | 1,759 | (329 | ) | ||||
Increase (decrease) in other liabilities | 3,796 | (720 | ) | ||||
Net Cash Provided by (Used in) Operating Activities | 413,521 | (28,054 | ) | ||||
Financing Activities | |||||||
Borrowings under Revolving Credit Facility (Note 4) | 536,000 | 839,000 | |||||
Principal payments under Revolving Credit Facility (Note 4) | (846,700 | ) | (753,300 | ) | |||
Issuance of Public Notes (Note 6) | 160,000 | — | |||||
Redemption of Convertible Notes (Note 5) | (150,000 | ) | — | ||||
Issuances of Prospect Capital InterNotes® (Note 7) | 69,289 | 21,789 | |||||
Redemptions of Prospect Capital InterNotes®, net (Note 7) | (2,606 | ) | (22,142 | ) | |||
Financing costs paid and deferred | (6,549 | ) | (7,633 | ) | |||
Cost of shares repurchased under stock repurchase program | (34,140 | ) | — | ||||
Proceeds from issuance of common stock, net of underwriting costs | — | 146,085 | |||||
Offering costs from issuance of common stock | 118 | (488 | ) | ||||
Dividends paid | (170,605 | ) | (223,001 | ) | |||
Net Cash (Used in) Provided by Financing Activities | (445,193 | ) | 310 | ||||
Total Decrease in Cash and Cash Equivalents | (31,672 | ) | (27,744 | ) | |||
Cash and cash equivalents at beginning of period | 110,026 | 134,225 | |||||
Cash and Cash Equivalents at End of Period | $ | 78,354 | $ | 106,481 | |||
Supplemental Disclosures | |||||||
Cash paid for interest | $ | 75,735 | $ | 75,037 | |||
Non-Cash Financing Activities | |||||||
Value of shares issued through reinvestment of dividends | $ | 7,645 | $ | 7,669 | |||
See notes to consolidated financial statements.
5
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(49) | ||||||||||||
American Property REIT Corp.(32) | Various / Real Estate | Senior Secured Term Loan (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 5.50% PIK, due 4/1/2019)(4)(6)(20) | $ | 69,635 | $ | 69,635 | $ | 69,635 | 2.0% | |||
Common Stock (307,846 shares) | 24,383 | 34,319 | 1.0% | |||||||||
Net Operating Income Interest (5% of Net Operating Income) | — | 7,360 | 0.2% | |||||||||
94,018 | 111,314 | 3.2% | ||||||||||
Arctic Energy Services, LLC(30) | Wyoming / Oil & Gas Services | Class D Units (32,915 units) | 31,640 | 33,882 | 1.0% | |||||||
Class E Units (21,080 units) | 20,230 | 18,942 | 0.6% | |||||||||
Class A Units (700 units) | 9,006 | — | —% | |||||||||
Class C Units (10 units) | — | — | —% | |||||||||
60,876 | 52,824 | 1.6% | ||||||||||
CCPI Inc.(33) | Ohio / Manufacturing | Senior Secured Term Loan A (10.00%, due 12/31/2017)(3) | 12,538 | 12,538 | 12,538 | 0.4% | ||||||
Senior Secured Term Loan B (12.00% plus 7.00% PIK, due 12/31/2017)(6) | 9,158 | 9,158 | 9,158 | 0.3% | ||||||||
Common Stock (14,857 shares) | 6,636 | 19,294 | 0.6% | |||||||||
28,332 | 40,990 | 1.3% | ||||||||||
CP Energy Services Inc.(38) | Oklahoma / Oil & Gas Services | Series B Convertible Preferred Stock (1,043 shares) | 98,273 | 75,501 | 2.2% | |||||||
Common Stock (2,924 shares) | 15,227 | — | —% | |||||||||
113,500 | 75,501 | 2.2% | ||||||||||
Credit Central Loan Company, LLC(34) | South Carolina / Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2019)(6)(22) | 36,333 | 36,333 | 36,333 | 1.1% | ||||||
Class A Shares (7,500,000 shares)(22) | 11,633 | 13,938 | 0.4% | |||||||||
Net Revenues Interest (25% of Net Revenues)(22) | — | 3,920 | 0.1% | |||||||||
47,966 | 54,191 | 1.6% | ||||||||||
Echelon Aviation LLC | New York / Aerospace & Defense | Senior Secured Term Loan (11.75% (LIBOR + 9.75% with 2.00% LIBOR floor) plus 2.25% PIK, due 3/31/2022)(4)(6)(20) | 40,808 | 40,808 | 40,808 | 1.2% | ||||||
Membership Interest (99%) | 19,907 | 25,480 | 0.7% | |||||||||
60,715 | 66,288 | 1.9% | ||||||||||
Edmentum Ultimate Holdings, LLC(47) | Minnesota / Consumer Services | Second Lien Revolving Credit Facility to Edmentum, Inc. – $7,834 Commitment (5.00%, due 6/9/2020)(19)(25) | — | — | —% | |||||||
Unsecured Senior PIK Note (8.50% PIK, due 6/9/2020)(6) | 6,077 | 6,077 | 6,077 | 0.2% | ||||||||
Unsecured Junior PIK Note (10.00% PIK, due 6/9/2020)(6) | 27,430 | 20,931 | 21,192 | 0.6% | ||||||||
Class A Common Units (370,964.14 units) | 6,577 | 8,400 | 0.2% | |||||||||
33,585 | 35,669 | 1.0% | ||||||||||
First Tower Finance Company LLC(29) | Mississippi / Consumer Finance | Subordinated Term Loan to First Tower, LLC (10.00% plus 12.00% PIK, due 6/24/2019)(6)(22) | 255,249 | 255,249 | 255,249 | 7.4% | ||||||
Class A Shares (86,711,624.89 shares)(22) | 70,476 | 102,822 | 3.0% | |||||||||
325,725 | 358,071 | 10.4% | ||||||||||
Freedom Marine Solutions, LLC(8) | Louisiana / Oil & Gas Services | Membership Interest (100%) | 39,811 | 25,560 | 0.7% | |||||||
39,811 | 25,560 | 0.7% | ||||||||||
See notes to consolidated financial statements.
6
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(49) | ||||||||||||
Gulf Coast Machine & Supply Company | Texas / Manufacturing | Senior Secured Term Loan (10.50% (LIBOR + 8.50% with 2.00% LIBOR floor), in non-accrual status effective 1/1/2015, due 10/12/2017)(4)(20) | $34,407 | $31,924 | $9,403 | 0.3% | ||||||
Series A Convertible Preferred Stock (99,900 shares) | 25,950 | — | —% | |||||||||
57,874 | 9,403 | 0.3% | ||||||||||
Harbortouch Payments, LLC(43) | Pennsylvania / Business Services | Senior Secured Term Loan A (9.00% (LIBOR + 7.00% with 2.00% LIBOR floor), due 9/30/2017)(3)(4)(20) | 128,586 | 128,586 | 128,586 | 3.7% | ||||||
Senior Secured Term Loan B (5.50% (LIBOR + 4.00% with 1.50% LIBOR floor) plus 5.50% PIK, due 3/31/2018)(4)(6)(20) | 144,878 | 144,878 | 144,878 | 4.2% | ||||||||
Senior Secured Term Loan C (13.00% (LIBOR + 9.00% with 4.00% LIBOR floor), due 9/29/2018)(4)(20) | 20,688 | 20,688 | 20,688 | 0.6% | ||||||||
Class C Shares (535 shares) | 8,702 | 49,635 | 1.4% | |||||||||
302,854 | 343,787 | 9.9% | ||||||||||
MITY, Inc.(17) | Utah / Durable Consumer Products | Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 3/19/2019)(3)(4)(20) | 18,250 | 18,250 | 18,250 | 0.5% | ||||||
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 3/19/2019)(4)(6)(20) | 16,442 | 16,442 | 16,442 | 0.5% | ||||||||
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due on demand)(22) | 7,200 | 7,200 | 5,316 | 0.2% | ||||||||
Common Stock (42,053 shares) | 6,849 | 13,966 | 0.4% | |||||||||
48,741 | 53,974 | 1.6% | ||||||||||
National Property REIT Corp.(40) | Various / Real Estate | Senior Secured Term Loan A (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 5.50% PIK, due 4/1/2019)(4)(6)(20) | 171,413 | 171,413 | 171,413 | 5.0% | ||||||
Senior Secured Term Loan E (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 5.00% PIK, due 4/1/2019)(4)(6)(20) | 137,539 | 137,539 | 137,539 | 4.0% | ||||||||
Senior Secured Term Loan C to ACL Loan Holdings, Inc. (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 5.00% PIK, due 4/1/2019)(4)(6)(20)(22) | 131,950 | 131,950 | 131,950 | 3.8% | ||||||||
Common Stock (770,432 shares) | 119,394 | 105,554 | 3.1% | |||||||||
Net Operating Income Interest (5% of Net Operating Income) | — | 21,419 | 0.6% | |||||||||
560,296 | 567,875 | 16.5% | ||||||||||
Nationwide Loan Company LLC(36) | Illinois / Consumer Finance | Senior Subordinated Term Loan to Nationwide Acceptance LLC (10.00% plus 10.00% PIK, due 6/18/2019)(6)(22) | 16,696 | 16,696 | 16,696 | 0.5% | ||||||
Class A Shares (30,192,535 shares)(22) | 14,794 | 16,016 | 0.5% | |||||||||
31,490 | 32,712 | 1.0% | ||||||||||
NMMB, Inc.(24) | New York / Media | Senior Secured Note (14.00%, due 5/6/2016) | 3,714 | 3,714 | 3,714 | 0.1% | ||||||
Senior Secured Note to Armed Forces Communications, Inc. (14.00%, due 5/6/2016) | 7,000 | 7,000 | 7,000 | 0.2% | ||||||||
Series A Preferred Stock (7,200 shares) | 7,200 | 2,781 | 0.1% | |||||||||
Series B Preferred Stock (5,669 shares) | 5,669 | — | —% | |||||||||
23,583 | 13,495 | 0.4% | ||||||||||
R-V Industries, Inc. | Pennsylvania / Manufacturing | Senior Subordinated Note (10.00% (LIBOR + 9.00% with 1.00% LIBOR floor), due 6/12/2018)(3)(4)(20) | 29,237 | 29,237 | 29,237 | 0.9% | ||||||
Common Stock (545,107 shares) | 5,087 | 4,309 | 0.1% | |||||||||
Warrant (to purchase 200,000 shares of Common Stock, expires 6/30/2017) | 1,682 | 1,581 | —% | |||||||||
36,006 | 35,127 | 1.0% | ||||||||||
7
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(49) | ||||||||||||
United Property REIT Corp.(41) | Various / Real Estate | Senior Term Loan (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 5.50% PIK, due 4/1/2019)(4)(6)(20) | $ | 67,252 | $ | 67,252 | $ | 67,252 | 2.0% | |||
Common Stock (75,382 shares) | 13,854 | 14,452 | 0.4% | |||||||||
Net Operating Income Interest (5% of Net Operating Income) | — | 10,698 | 0.3% | |||||||||
81,106 | 92,402 | 2.7% | ||||||||||
Valley Electric Company, Inc.(35) | Washington / Construction & Engineering | Senior Secured Note to Valley Electric Co. of Mt. Vernon, Inc. (8.00% (LIBOR + 5.00% with 3.00% LIBOR floor) plus 2.50% PIK, due 12/31/2017)(3)(4)(6)(20) | 10,430 | 10,430 | 10,430 | 0.3% | ||||||
Senior Secured Note (10.00% plus 8.50% PIK, due 12/31/2018)(6) | 23,251 | 23,251 | 23,251 | 0.7% | ||||||||
Common Stock (50,000 shares) | 26,204 | 4,897 | 0.1% | |||||||||
59,885 | 38,578 | 1.1% | ||||||||||
Wolf Energy, LLC(37) | Kansas / Oil & Gas Production | Senior Secured Promissory Note secured by assets formerly owned by H&M (18.00%, in non-accrual status effective 4/15/2013, due 4/15/2018) | 35,050 | — | 854 | —% | ||||||
Membership Interest (100%) | — | — | —% | |||||||||
Net Profits Interest (8% of Equity Distributions)(7) | — | 19 | —% | |||||||||
— | 873 | —% | ||||||||||
Total Control Investments | $ | 2,006,363 | $ | 2,008,634 | 58.5% | |||||||
Affiliate Investments (5.00% to 24.99% voting control)(50) | ||||||||||
BNN Holdings Corp. | Michigan / Healthcare | Series A Preferred Stock (9,925.455 shares)(13) | $2,228 | $2,771 | 0.1% | |||||
Series B Preferred Stock (1,753.636 shares)(13) | — | 597 | —% | |||||||
2,228 | 3,368 | 0.1% | ||||||||
Total Affiliate Investments | $ | 2,228 | $ | 3,368 | 0.1% | |||||
8
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
AFI Shareholder, LLC (f/k/a Aircraft Fasteners International, LLC) | California / Machinery | Class A Units (32,500 units) | $ | — | $ | 361 | $ | 549 | —% | |||
361 | 549 | —% | ||||||||||
Airmall Inc.(27) | Pennsylvania / Property Management | Escrow Receivable(27) | — | 5,880 | 3,970 | 0.1% | ||||||
5,880 | 3,970 | 0.1% | ||||||||||
Ajax Rolled Ring & Machine, LLC(42) | South Carolina / Manufacturing | Escrow Receivable(42) | — | 1,264 | 2,259 | 0.1% | ||||||
1,264 | 2,259 | 0.1% | ||||||||||
ALG USA Holdings, LLC | Pennsylvania / Hotels, Restaurants & Leisure | Second Lien Term Loan (10.25% (LIBOR + 9.00% with 1.25% LIBOR floor), due 2/28/2020)(4)(16)(20) | 11,771 | 11,611 | 11,771 | 0.3% | ||||||
11,611 | 11,771 | 0.3% | ||||||||||
American Gilsonite Company | Utah / Metal Services & Minerals | Membership Interest (99.9999%)(15) | — | — | — | —% | ||||||
— | — | —% | ||||||||||
Apidos CLO IX | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 18.17%)(11)(12)(22) | 23,525 | 20,400 | 20,618 | 0.6% | ||||||
20,400 | 20,618 | 0.6% | ||||||||||
Apidos CLO XI | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.58%)(11)(12)(22) | 38,340 | 30,547 | 27,324 | 0.8% | ||||||
30,547 | 27,324 | 0.8% | ||||||||||
Apidos CLO XII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.83%)(11)(12)(22) | 44,063 | 36,216 | 32,126 | 0.9% | ||||||
36,216 | 32,126 | 0.9% | ||||||||||
Apidos CLO XV | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.86%)(11)(12)(22) | 36,515 | 32,554 | 26,304 | 0.8% | ||||||
32,554 | 26,304 | 0.8% | ||||||||||
Apidos CLO XXII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 16.02%)(11)(12)(22)(48) | 31,350 | 27,440 | 24,338 | 0.7% | ||||||
27,440 | 24,338 | 0.7% | ||||||||||
Arctic Glacier U.S.A., Inc. | Minnesota / Food Products | Second Lien Term Loan (10.50% (LIBOR + 9.25% with 1.25% LIBOR floor), due 11/10/2019)(3)(4)(20) | 150,000 | 150,000 | 146,373 | 4.3% | ||||||
150,000 | 146,373 | 4.3% | ||||||||||
See notes to consolidated financial statements.
9
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Ark-La-Tex Wireline Services, LLC | Louisiana / Oil & Gas Services | Senior Secured Term Loan A (6.50% (LIBOR + 5.50% with 1.00% LIBOR floor), due 4/8/2019)(3)(4)(21) | $ | 21,463 | $ | 21,463 | $ | 15,468 | 0.5% | |||
Senior Secured Term Loan B (10.50% (LIBOR + 9.50% with 1.00% LIBOR floor), due 4/8/2019)(3)(4)(21) | 23,391 | 23,391 | 10,044 | 0.3% | ||||||||
44,854 | 25,512 | 0.8% | ||||||||||
Armor Holding II LLC | New York / Diversified Financial Services | Second Lien Term Loan (10.25% (LIBOR + 9.00% with 1.25% LIBOR floor), due 12/26/2020)(3)(4)(16)(20) | 7,000 | 6,897 | 6,869 | 0.2% | ||||||
6,897 | 6,869 | 0.2% | ||||||||||
Atlantis Health Care Group (Puerto Rico), Inc. | Puerto Rico / Healthcare | Revolving Line of Credit – $4,000 Commitment (13.00% (LIBOR + 11.00% with 2.00% LIBOR floor), due 8/21/2016)(4)(20)(25) | 2,350 | 2,350 | 2,350 | 0.1% | ||||||
Senior Term Loan (10.00% (LIBOR + 8.00% with 2.00% LIBOR floor), due 2/21/2018)(3)(4)(20) | 38,364 | 38,364 | 38,136 | 1.1% | ||||||||
40,714 | 40,486 | 1.2% | ||||||||||
Babson CLO Ltd. 2014-III | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.90%)(11)(12)(22)(48) | 52,250 | 45,695 | 41,377 | 1.2% | ||||||
45,695 | 41,377 | 1.2% | ||||||||||
Broder Bros., Co. | Pennsylvania / Textiles, Apparel & Luxury Goods | Senior Secured Term Loan A (7.00% (LIBOR + 5.75% with 1.25% LIBOR floor), due 6/03/2021)(3)(4)(21) | 122,212 | 122,212 | 122,212 | 3.6% | ||||||
Senior Secured Term Loan B (13.50% (LIBOR + 12.25% with 1.25% LIBOR floor), due 6/03/2021)(4)(21) | 122,458 | 122,458 | 122,458 | 3.6% | ||||||||
244,670 | 244,670 | 7.2% | ||||||||||
Brookside Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.64%)(11)(12)(22) | 26,000 | 20,620 | 20,596 | 0.6% | ||||||
20,620 | 20,596 | 0.6% | ||||||||||
Caleel + Hayden, LLC | Colorado / Personal & Nondurable Consumer Products | Membership Interest(31) | — | 266 | —% | |||||||
— | 266 | —% | ||||||||||
Capstone Logistics Acquisition, Inc. | Georgia / Business Services | Second Lien Term Loan (9.25% (LIBOR + 8.25% with 1.00% LIBOR floor), due 10/7/2022)(3)(4)(16)(21) | 102,500 | 101,928 | 98,743 | 2.9% | ||||||
101,928 | 98,743 | 2.9% | ||||||||||
Cent CLO 17 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.10%)(11)(12)(22) | 24,870 | 19,561 | 18,240 | 0.5% | ||||||
19,561 | 18,240 | 0.5% | ||||||||||
See notes to consolidated financial statements.
10
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Cent CLO 20 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 11.98%)(11)(12)(22) | $ | 40,275 | $ | 34,219 | $ | 28,675 | 0.8% | |||
34,219 | 28,675 | 0.8% | ||||||||||
Cent CLO 21 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.91%)(11)(12)(22)(48) | 48,528 | 40,592 | 36,245 | 1.1% | ||||||
40,592 | 36,245 | 1.1% | ||||||||||
CIFC Funding 2011-I, Ltd. | Cayman Islands / Structured Finance | Class D Senior Secured Notes (5.32% (LIBOR + 5.00%, due 1/19/2023)(4)(9)(22)(20) | 19,000 | 15,797 | 17,703 | 0.5% | ||||||
Class E Subordinated Notes (7.32% (LIBOR + 7.00%, due 1/19/2023)(4)(9)(22)(20) | 15,400 | 13,142 | 13,897 | 0.4% | ||||||||
28,939 | 31,600 | 0.9% | ||||||||||
CIFC Funding 2013-III, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.94%)(11)(12)(22) | 44,100 | 33,696 | 29,800 | 0.9% | ||||||
33,696 | 29,800 | 0.9% | ||||||||||
CIFC Funding 2013-IV, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.72%)(11)(12)(22) | 45,500 | 34,608 | 33,242 | 1.0% | ||||||
34,608 | 33,242 | 1.0% | ||||||||||
CIFC Funding 2014-IV Investor, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 14.37%)(11)(12)(22)(48) | 41,500 | 33,081 | 30,264 | 0.9% | ||||||
33,081 | 30,264 | 0.9% | ||||||||||
Cinedigm DC Holdings, LLC | New York / Software & Computer Services | Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021)(4)(6)(20) | 66,965 | 66,915 | 66,965 | 2.0% | ||||||
66,915 | 66,965 | 2.0% | ||||||||||
Coverall North America, Inc. | Florida / Commercial Services | Senior Secured Term Loan A (7.00% (LIBOR + 6.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(4) | 24,750 | 24,750 | 24,750 | 0.7% | ||||||
Senior Secured Term Loan B(12.00% (LIBOR + 11.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(4) | 25,000 | 25,000 | 25,000 | 0.7% | ||||||||
49,750 | 49,750 | 1.4% | ||||||||||
See notes to consolidated financial statements.
11
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Crosman Corporation | New York / Manufacturing | Senior Secured Term Loan A (9.13% (LIBOR + 8.70% with 0.39% LIBOR floor) plus 4.00% PIK, due 8/5/2020)(3)(4)(6)(21) | $ | 53,235 | $ | 53,235 | $ | 53,235 | 1.6% | |||
Senior Secured Term Loan B (16.13% (LIBOR + 15.70% with 0.39% LIBOR floor) plus 4.00% PIK, due 8/5/2020)(4)(6)(21) | 40,560 | 40,560 | 38,910 | 1.1% | ||||||||
93,795 | 92,145 | 2.7% | ||||||||||
Easy Gardener Products, Inc. | Texas / Durable Consumer Products | Senior Secured Term Loan (10.61% (LIBOR + 10.00% with 0.25% LIBOR floor), due 09/30/2020)(3) | 17,456 | 17,456 | 17,456 | 0.5% | ||||||
17,456 | 17,456 | 0.5% | ||||||||||
Empire Today, LLC | Illinois / Durable Consumer Products | Senior Secured Note (11.375%, due 2/1/2017)(16) | 15,700 | 15,573 | 14,813 | 0.4% | ||||||
15,573 | 14,813 | 0.4% | ||||||||||
Fleetwash, Inc. | New Jersey / Business Services | Senior Secured Term Loan B (10.50% (LIBOR + 9.50% with 1.00% LIBOR floor), due 4/30/2019)(3)(4)(20) | 24,446 | 24,446 | 23,816 | 0.7% | ||||||
Delayed Draw Term Loan – $15,000 Commitment (expires 4/30/2019)(25) | — | — | —% | |||||||||
24,446 | 23,816 | 0.7% | ||||||||||
Focus Brands, Inc. | Georgia / Consumer Services | Second Lien Term Loan (10.25% (LIBOR + 9.00% with 1.25% LIBOR floor), due 8/21/2018)(4)(16)(21) | 18,000 | 17,848 | 18,000 | 0.5% | ||||||
17,848 | 18,000 | 0.5% | ||||||||||
Galaxy XV CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 16.04%)(11)(12)(22) | 39,275 | 29,703 | 28,831 | 0.8% | ||||||
29,703 | 28,831 | 0.8% | ||||||||||
Galaxy XVI CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.86%)(11)(12)(22) | 24,575 | 19,763 | 17,885 | 0.5% | ||||||
19,763 | 17,885 | 0.5% | ||||||||||
Galaxy XVII CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.11%)(11)(12)(22)(48) | 39,905 | 32,104 | 28,571 | 0.8% | ||||||
32,104 | 28,571 | 0.8% | ||||||||||
Global Employment Solutions, Inc. | Colorado / Business Services | Senior Secured Term Loan (10.25% (LIBOR + 9.25% with 1.00% LIBOR floor), due 6/26/2020)(3)(4)(21) | 49,442 | 49,442 | 49,442 | 1.4% | ||||||
49,442 | 49,442 | 1.4% | ||||||||||
See notes to consolidated financial statements.
12
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Halcyon Loan Advisors Funding 2012-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 22.90%)(11)(12)(22) | $ | 23,188 | $ | 19,097 | $ | 21,150 | 0.6% | |||
19,097 | 21,150 | 0.6% | ||||||||||
Halcyon Loan Advisors Funding 2013-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 22.59%)(11)(12)(22) | 40,400 | 33,466 | 34,394 | 1.0% | ||||||
33,466 | 34,394 | 1.0% | ||||||||||
Halcyon Loan Advisors Funding 2014-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.63%)(11)(12)(22) | 24,500 | 19,723 | 18,826 | 0.5% | ||||||
19,723 | 18,826 | 0.5% | ||||||||||
Halcyon Loan Advisors Funding 2014-2 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 18.49%)(11)(12)(22)(48) | 41,164 | 32,877 | 31,761 | 0.9% | ||||||
32,877 | 31,761 | 0.9% | ||||||||||
Halcyon Loan Advisors Funding 2015-3 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.54%)(11)(12)(22)(48) | 39,598 | 38,786 | 37,099 | 1.1% | ||||||
38,786 | 37,099 | 1.1% | ||||||||||
HarbourView CLO VII, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.63%)(11)(12)(22)(48) | 19,025 | 14,542 | 13,129 | 0.4% | ||||||
14,542 | 13,129 | 0.4% | ||||||||||
Harley Marine Services, Inc. | Washington / Transportation | Second Lien Term Loan (10.50% (LIBOR + 9.25% with 1.25% LIBOR floor), due 12/20/2019)(3)(4)(16)(20) | 9,000 | 8,869 | 8,869 | 0.3% | ||||||
8,869 | 8,869 | 0.3% | ||||||||||
Hollander Sleep Products, LLC | Florida / Durable Consumer Products | Senior Secured Term Loan (9.00% (LIBOR + 8.00% with 1.00% LIBOR floor), due 10/21/2020)(3)(4)(20) | 22,331 | 22,331 | 21,897 | 0.6% | ||||||
22,331 | 21,897 | 0.6% | ||||||||||
ICON Health & Fitness, Inc. | Utah / Durable Consumer Products | Senior Secured Note (11.875%, due 10/15/2016)(16) | 10,100 | 10,096 | 9,271 | 0.3% | ||||||
10,096 | 9,271 | 0.3% | ||||||||||
ICV-CSI Holdings, LLC | New York / Transportation | Membership Units (1.6 units) | — | 1,639 | 2,219 | 0.1% | ||||||
1,639 | 2,219 | 0.1% | ||||||||||
See notes to consolidated financial statements.
13
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Instant Web, LLC | Minnesota / Media | Senior Secured Term Loan A (5.50% (LIBOR + 4.50% with 1.00% LIBOR floor), due 3/28/2019)(4)(20) | $ | 115,933 | $ | 115,933 | $ | 115,085 | 3.4% | |||
Senior Secured Term Loan B (12.00% (LIBOR + 11.00% with 1.00% LIBOR floor), due 3/28/2019)(3)(4)(20) | 150,100 | 150,100 | 150,100 | 4.4% | ||||||||
Senior Secured Term Loan C (12.75% (LIBOR + 11.75% with 1.00% LIBOR floor), due 3/28/2019)(4)(20) | 27,000 | 27,000 | 27,000 | 0.8% | ||||||||
Delayed Draw Term Loan – $16,000 Commitment (expires 5/29/2016)(25) | — | — | —% | |||||||||
293,033 | 292,185 | 8.6% | ||||||||||
InterDent, Inc. | California / Healthcare | Senior Secured Term Loan A (6.25% (LIBOR + 5.50% with 0.75% LIBOR floor), due 8/3/2017)(4)(21) | 79,979 | 79,979 | 79,979 | 2.3% | ||||||
Senior Secured Term Loan B (11.25% (LIBOR + 10.50% with 0.75% LIBOR floor), due 8/3/2017)(3)(4)(21) | 131,125 | 131,125 | 131,125 | 3.8% | ||||||||
211,104 | 211,104 | 6.1% | ||||||||||
JAC Holding Corporation | Michigan / Transportation | Senior Secured Note (11.50%, due 10/1/2019)(16) | 3,000 | 3,000 | 2,990 | 0.1% | ||||||
3,000 | 2,990 | 0.1% | ||||||||||
Jefferson Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.24%)(11)(12)(22)(48) | 19,500 | 17,027 | 13,682 | 0.4% | ||||||
17,027 | 13,682 | 0.4% | ||||||||||
JHH Holdings, Inc. | Texas / Healthcare | Second Lien Term Loan (11.25% (LIBOR + 10.00% with 1.25% LIBOR floor) plus 0.50% PIK, due 3/30/2019)(3)(4)(6)(20) | 35,402 | 35,402 | 35,402 | 1.0% | ||||||
35,402 | 35,402 | 1.0% | ||||||||||
LaserShip, Inc. | Virginia / Transportation | Senior Secured Term Loan A (10.25% (LIBOR + 8.25% with 2.00% LIBOR floor) plus 2.00% PIK, due 3/18/2019)(3)(4)(6)(21) | 34,688 | 34,688 | 26,196 | 0.8% | ||||||
Senior Secured Term Loan B (10.25% (LIBOR + 8.25% with 2.00% LIBOR floor) plus 2.00% PIK, due 3/18/2019)(3)(4)(6)(21) | 21,277 | 21,277 | 16,067 | 0.5% | ||||||||
55,965 | 42,263 | 1.3% | ||||||||||
LCM XIV Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 17.22%)(11)(12)(22) | 30,500 | 24,013 | 23,257 | 0.7% | ||||||
24,013 | 23,257 | 0.7% | ||||||||||
See notes to consolidated financial statements.
14
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Madison Park Funding IX, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.80%)(11)(12)(22) | $ | 31,110 | $ | 23,043 | $ | 23,580 | 0.7% | |||
23,043 | 23,580 | 0.7% | ||||||||||
Matrixx Initiatives, Inc. | New Jersey / Pharmaceuticals | Senior Secured Term Loan A (7.50% (LIBOR + 6.00% with 1.50% LIBOR floor), due 8/9/2018)(3)(4)(20) | 33,014 | 33,014 | 32,995 | 1.0% | ||||||
Senior Secured Term Loan B (12.50% (LIBOR + 11.00% with 1.50% LIBOR floor), due 8/9/2018)(3)(4)(20) | 40,562 | 40,562 | 40,562 | 1.2% | ||||||||
73,576 | 73,557 | 2.2% | ||||||||||
Maverick Healthcare Equity, LLC | Arizona / Healthcare | Preferred Units (1,250,000 units) | — | 1,252 | 2,036 | 0.1% | ||||||
Class A Common Units (1,250,000 units) | — | — | 416 | —% | ||||||||
1,252 | 2,452 | 0.1% | ||||||||||
Mountain View CLO 2013-I Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 19.19%)(11)(12)(22) | 43,650 | 35,469 | 35,326 | 1.0% | ||||||
35,469 | 35,326 | 1.0% | ||||||||||
Mountain View CLO IX Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.95%)(11)(12)(22)(48) | 47,830 | 46,175 | 42,110 | 1.2% | ||||||
46,175 | 42,110 | 1.2% | ||||||||||
Nathan's Famous, Inc. | New York / Food Products | Senior Secured Notes (10.00%, due 3/15/2020)(16) | 3,000 | 3,000 | 3,000 | 0.1% | ||||||
3,000 | 3,000 | 0.1% | ||||||||||
NCP Finance Limited Partnership(23) | Ohio / Consumer Finance | Subordinated Secured Term Loan (11.00% (LIBOR + 9.75% with 1.25% LIBOR floor), due 9/30/2018)(3)(4)(16)(21)(22)(23) | 16,252 | 16,040 | 16,252 | 0.5% | ||||||
16,040 | 16,252 | 0.5% | ||||||||||
New Century Transportation, Inc. | New Jersey / Transportation | Senior Subordinated Term Loan (12.00% (LIBOR + 10.00% with 2.00% LIBOR floor) plus 4.00% PIK, in non-accrual status effective 4/1/2014, due 2/3/2018)(4)(6)(21) | 187 | 187 | — | —% | ||||||
187 | — | —% | ||||||||||
Nixon, Inc. | California / Durable Consumer Products | Senior Secured Term Loan (9.50% plus 2.50% PIK, due 4/16/2018)(3)(6)(16) | 14,085 | 13,939 | 12,410 | 0.4% | ||||||
13,939 | 12,410 | 0.4% | ||||||||||
Octagon Investment Partners XV, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 19.58%)(11)(12)(22) | 32,921 | 27,092 | 26,460 | 0.8% | ||||||
27,092 | 26,460 | 0.8% | ||||||||||
See notes to consolidated financial statements.
15
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2015 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Principal Value | Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Octagon Investment Partners XVIII, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 21.53%)(11)(12)(22)(48) | $ | 28,200 | $ | |||||||