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EX-32.1 - EXHIBIT 32.1 - PhenixFIN Corpexhibit321.htm
EX-31.2 - EXHIBIT 31.2 - PhenixFIN Corpexhibit312.htm
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EX-21.1 - EXHIBIT 21.1 - PhenixFIN Corpcopyofexhibit211.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
  
Form 10-Q
 
(Mark One)
 
 
 
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the Quarterly Period Ended December 31, 2016
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.)
 
 
 
280 Park Avenue, 6th Floor East, New York, NY 10017
 
10017
(Address of Principal Executive Offices)
 
(Zip Code)
 
(212) 759-0777
 
(Registrant’s Telephone Number, Including Area Code)
 _____________________________________________________________________________________________________
 
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 ýNo ¨
 
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 ý        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 ý
 
The Registrant had 54,474,211 shares of common stock, $0.001 par value, outstanding as of February 9, 2017.




MEDLEY CAPITAL CORPORATION
TABLE OF CONTENTS
 
 
Part I.
Financial Information
 
 
 
 
Item I.
Financial Statements
 
 
 
 
 
Consolidated Statements of Assets and Liabilities as of December 31, 2016 (unaudited) and September 30, 2016
 
 
 
 
Consolidated Statements of Operations for the three months ended December 31, 2016 and 2015 (unaudited)
 
 
 
 
Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2016 and 2015 (unaudited)
 
 
 
 
Consolidated Statements of Cash Flows for the three months ended December 31, 2016 and 2015 (unaudited)
 
 
 
 
Consolidated Schedules of Investments as of December 31, 2016 (unaudited) and September 30, 2016
 
 
 
 
Notes to Consolidated Financial Statements (unaudited)
 
 
 
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
 
 
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
 
 
 
Item 4.
Controls and Procedures
 
 
 
Part II.
Other Information
 
 
 
Item 1.
Legal Proceedings
 
 
 
Item 1A.
Risk Factors
 
 
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
 
 
 
Item 3.
Defaults Upon Senior Securities
 
 
 
Item 4.
Mine Safety Disclosures
 
 
 
Item 5.
Other Information
 
 
 
Item 6.
Exhibits
 
 
 
SIGNATURES





Medley Capital Corporation
 
Consolidated Statements of Assets and Liabilities
 
As of
 
December 31, 2016
 
September 30, 2016
ASSETS
(unaudited)
 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (amortized cost of $775,077,727 and $813,813,853, respectively)
$
730,315,622

 
$
767,302,020

Controlled investments (amortized cost of $228,752,509 and $189,077,188, respectively)
177,297,064

 
136,882,275

Affiliated investments (amortized cost of $10,000,000 and $10,000,000, respectively)
10,000,000

 
10,000,000

Total investments at fair value
917,612,686


914,184,295

Cash and cash equivalents
102,135,006

 
104,485,263

Interest receivable
11,006,751

 
8,982,154

Other assets
750,073

 
893,140

Fees receivable
638,859

 
1,403,383

Receivable for dispositions and investments sold
555,748

 
689,379

Deferred offering costs
244,372

 
242,991

Total assets
$
1,032,943,495


$
1,030,880,605

 
 
 
 
LIABILITIES
 

 
 

Revolving credit facility payable (net of debt issuance costs of $3,210,753 and $3,589,844, respectively)
$
14,789,247

 
$
10,410,156

Term loan payable (net of debt issuance costs of $2,017,058 and $2,196,756, respectively)
171,982,942

 
171,803,244

Notes payable (net of debt issuance costs of $4,647,746 and $4,629,649, respectively)
173,244,811

 
172,883,176

SBA debentures payable (net of debt issuance costs of $3,353,800 and $3,525,029, respectively)
146,646,200

 
146,474,971

Management and incentive fees payable (See note 6)
5,346,682

 
4,558,619

Interest and fees payable
4,031,982

 
1,714,023

Accounts payable and accrued expenses
2,206,792

 
2,662,950

Deferred tax liability
2,003,724

 
2,003,724

Administrator expenses payable (See note 6)
916,066

 
990,236

Deferred revenue
310,065

 
369,805

Due to affiliate
204,597

 
90,559

Total liabilities
$
521,683,108


$
513,961,463

 
 
 
 
Commitments (See note 8)
 

 
 

 
 
 
 
NET ASSETS
 

 
 

Common stock, par value $0.001 per share, 100,000,000 common shares authorized, 54,474,211 and 54,474,211 common shares issued and outstanding, respectively
$
54,474

 
$
54,474

Capital in excess of par value
705,326,059

 
705,326,059

Accumulated undistributed net investment income
8,962,242

 
10,811,762

Accumulated net realized gain/(loss) from investments
(105,298,697
)
 
(99,000,266
)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes
(97,783,691
)
 
(100,272,887
)
Total net assets
511,260,387


516,919,142

Total liabilities and net assets
$
1,032,943,495


$
1,030,880,605

 
 
 
 
NET ASSET VALUE PER SHARE
$
9.39

 
$
9.49

 
See accompanying notes to consolidated financial statements.

F-1



Medley Capital Corporation

Consolidated Statements of Operations
 
 
For the three months ended December 31
 
2016
 
2015
INVESTMENT INCOME:
(unaudited)
 
(unaudited)
Interest from investments
 

 
 

Non-controlled/non-affiliated investments:
 

 
 

Cash
$
18,520,378

 
$
28,126,021

Payment-in-kind
2,962,050

 
1,222,112

Affiliated investments:
 

 
 

Cash
166,750

 
166,750

Payment-in-kind

 

Controlled investments:
 

 
 

Cash
343,158

 
855,626

Payment-in-kind
1,971,560

 
995,956

Total interest income
23,963,896

 
31,366,465

Dividend income, net of provisional taxes ($0 and $0, respectively)
644,953

 

Interest from cash and cash equivalents
23,412

 
2,235

Fee income (See note 9)
1,423,804

 
3,058,627

Total investment income
26,056,065

 
34,427,327




 


EXPENSES:
 

 
 

Base management fees (See note 6)
4,514,615

 
5,346,758

Incentive fees (See note 6)
895,675

 
3,916,469

Interest and financing expenses
7,773,971

 
6,970,085

Administrator expenses (See note 6)
916,066

 
916,377

General and administrative
697,005

 
709,992

Professional fees
651,111

 
632,521

Directors fees
169,784

 
133,841

Insurance
99,455

 
135,409

Expenses before management and incentive fee waivers
15,717,682

 
18,761,452

Management fee waiver (See note 6)
(19,945
)
 

Incentive fee waiver (See note 6)
(43,663
)
 

Total expenses, net of management and incentive fee waivers
15,654,074

 
18,761,452

Net investment income before excise taxes
10,401,991

 
15,665,875

Excise tax expense
(267,183
)
 

NET INVESTMENT INCOME
10,134,808

 
15,665,875




 


REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
 

 
 

Net realized gain/(loss) from investments
(6,298,431
)
 
5,378,048

Net unrealized appreciation/(depreciation) on investments
2,489,196

 
(60,023,619
)
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments

 
(224,616
)
Net gain/(loss) on investments
(3,809,235
)
 
(54,870,187
)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$
6,325,573

 
$
(39,204,312
)



 


WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE
$
0.12

 
$
(0.70
)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE
$
0.19

 
$
0.28

WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)
54,474,211

 
56,300,067

DIVIDENDS DECLARED PER COMMON SHARE
$
0.22

 
$
0.30

 
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
 
2016
 
2015
OPERATIONS:
(unaudited)
 
(unaudited)
Net investment income
$
10,134,808

 
$
15,665,875

Net realized gain/(loss) from investments
(6,298,431
)
 
5,378,048

Net unrealized appreciation/(depreciation) on investments
2,489,196

 
(60,023,619
)
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments

 
(224,616
)
Net increase/(decrease) in net assets from operations
6,325,573

 
(39,204,312
)
SHAREHOLDER DISTRIBUTIONS:
 

 
 

Distributions from net investment income
(11,984,328
)
 
(16,901,142
)
Net decrease in net assets from shareholder distributions
(11,984,328
)
 
(16,901,142
)
COMMON SHARE TRANSACTIONS:
 

 
 

Repurchase of common stock under stock repurchase program (0 and 143,349 shares, respectively)

 
(1,099,932
)
Net increase/(decrease) in net assets from common share transactions

 
(1,099,932
)
Total increase/(decrease) in net assets
(5,658,755
)
 
(57,205,386
)
Net assets at beginning of period
516,919,142

 
619,920,384

Net assets at end of period including accumulated undistributed net investment income of $8,962,242 and $19,116,562, respectively
$
511,260,387

 
$
562,714,998

 
 
 
 
Net asset value per common share
$
9.39

 
$
10.01

Common shares outstanding at end of period
54,474,211

 
56,193,803

 
See accompanying notes to consolidated financial statements.
 



F-3



Medley Capital Corporation
 
Consolidated Statements of Cash Flows
 
For the three months ended December 31
 
2016
 
2015
Cash flows from operating activities
(unaudited)
 
(unaudited)
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
$
6,325,573

 
$
(39,204,312
)
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
(4,823,083
)
 
(3,817,899
)
Net amortization of premium/(discount) on investments
(350,100
)
 
(229,653
)
Amortization of debt issuance costs
997,329

 
788,924

Net realized (gain)/loss from investments
6,298,431

 
(5,378,048
)
Net deferred income taxes

 
224,616

Net unrealized (appreciation)/depreciation on investments
(2,489,196
)
 
60,023,619

Proceeds from sale and settlements of investments
40,117,661

 
97,056,910

Purchases, originations and participations
(42,182,104
)
 
(46,686,682
)
(Increase)/decrease in operating assets:
 

 
 

Interest receivable
(2,024,597
)
 
823,758

Fees receivable
764,524

 
(586,474
)
Other assets
143,067

 
119,967

Receivable for dispositions and investments sold
133,631

 
(564,347
)
Increase/(decrease) in operating liabilities:
 

 
 

Management and incentive fees payable, net
788,063

 
(699,307
)
Accounts payable and accrued expenses
(456,158
)
 
(1,027,843
)
Interest and fees payable
2,317,959

 
1,277,906

Administrator expenses payable
(74,170
)
 
(83,165
)
Deferred revenue
(59,740
)
 
28,381

Due to affiliate
114,038

 
109,066

NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES
5,541,128

 
62,175,417

 
 
 
 
Cash flows from financing activities
 

 
 

Repurchase of common stock under stock repurchase program

 
(1,099,932
)
Offering costs paid
(1,381
)
 
(118,576
)
Borrowings on debt
18,379,732

 
83,762,825

Paydowns on debt
(14,000,000
)
 
(116,500,000
)
Debt issuance costs paid
(285,408
)
 
(2,919,544
)
Payments of cash dividends
(11,984,328
)
 
(16,901,142
)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES
(7,891,385
)
 
(53,776,369
)
 
 
 
 
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
(2,350,257
)
 
8,399,048

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
104,485,263

 
15,714,256

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
102,135,006

 
$
24,113,304

 
 
 
 
Supplemental Information:
 

 
 

Interest paid during the period
$
4,439,248

 
$
4,883,873

Supplemental non-cash information:
 

 
 

Payment-in-kind interest income
$
4,933,610

 
$
2,218,068

Net amortization of premium/(discount) on investments
$
350,100

 
$
229,653

Amortization of debt issuance costs
$
(997,329
)
 
$
(788,924
)
Non-cash purchase of investments
$
58,615,663

 
$

Non-cash sale of investments
$
58,615,663

 
$

 
See accompanying notes to consolidated financial statements.

F-4



Medley Capital Corporation

Consolidated Schedule of Investments

December 31, 2016
(unaudited)
Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Controlled/Non-Affiliated Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Access Media Holdings, LLC(7)
 
Media:  Broadcasting & Subscription
 
Senior Secured First Lien Term Loan (10.00%)
 
7/22/2020
 
8,029,730

 
8,029,730

 
7,849,623

 
1.5
%
 
 
 
 
Preferred Equity Series A
 
 
 
1,600,000

 
1,600,000

 

 
0.0
%
 
 
 
 
Preferred Equity Series AA
 
 
 
740,000

 
740,000

 

 
0.0
%
 
 
 
 
16% of Common Equity of Newco
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
10,369,730

 
10,369,730

 
7,849,623

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accupac, Inc.
 
Containers, Packaging & Glass
 
Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)(18)
 
7/14/2020
 
27,000,000

 
27,000,000

 
27,000,000

 
5.3
%
 
 
 
 
 
 
 
 
27,000,000

 
27,000,000

 
27,000,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Diagnostic Holdings, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan (LIBOR + 8.75% Cash, 0.875% LIBOR Floor)
 
12/11/2020
 
15,262,608

 
15,262,608

 
15,567,860

 
3.1
%
 
 
 
 
 
 
 
 
15,262,608

 
15,262,608

 
15,567,860

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Albertville Quality Foods, Inc.(12)
 
Beverage & Food
 
Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor, 3.00% LIBOR Cap)(18)
 
10/31/2018
 
15,863,017

 
15,863,017

 
15,863,017

 
3.1
%
 
 
 
 
 
 
 
 
15,863,017

 
15,863,017

 
15,863,017

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Autosplice, Inc.
 
High Tech Industries
 
Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(19)
 
6/30/2019
 
14,572,220

 
14,572,220

 
14,717,942

 
2.9
%
 
 
 
 
 
 
 
 
14,572,220

 
14,572,220

 
14,717,942

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Backcountry.com, LLC
 
Retail
 
Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(19)
 
6/30/2020
 
2,542,969

 
2,542,969

 
2,568,398

 
0.5
%
 
 
 
 
 
 
 
 
2,542,969

 
2,542,969

 
2,568,398

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Be Green Packaging, LLC
 
Containers, Packaging & Glass
 
Equity - 417 Common Shares(33)
 
 
 

 
416,250

 

 
0.0
%
 
 
 
 
 
 
 
 

 
416,250

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
7,854,911

 
7,854,911

 
7,634,204

 
1.5
%
 
 
 
 
Senior Secured First Lien Delayed Draw (LIBOR + 9.00%, 1.00% LIBOR Floor)(18)
 
4/24/2020
 

 

 

 
0.0
%
 
 
 
 
Revolver (LIBOR + 9.00%, 1.00% LIBOR Floor)(18)(27)
 
4/24/2020
 
267,857

 
267,857

 
267,857

 
0.1
%
 
 
 
 
 
 
 
 
8,122,768

 
8,122,768

 
7,902,061

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brantley Transportation LLC(7)(12)
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan (12.00% PIK)(10)
 
8/2/2017
 
10,369,176

 
9,037,576

 
5,515,054

 
1.1
%
 
 
 
 
Senior Secured First Lien Delayed Draw (LIBOR + 5.00%, 1.00% LIBOR Floor)(19)
 
8/2/2017
 
712,500

 
712,500

 
712,500

 
0.1
%
 
 
 
 
7.50 Common Units represent 8.04% of the outstanding equity interest of Brantley Trucking, LLC
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
11,081,676

 
9,750,076

 
6,227,554

 
 

F-5



Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ConvergeOne Holdings Corporation
 
Telecommunications
 
Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)
 
6/17/2021
 
12,500,000

 
12,410,971

 
12,500,000

 
2.4
%
 
 
 
 
 
 
 
 
12,500,000

 
12,410,971

 
12,500,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CP OPCO, LLC(7)
 
Services:  Consumer
 
Senior Secured First Lien Term Loan A (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(19)(31)
 
3/31/2019
 
2,859,385

 
2,859,385

 
2,859,385

 
0.6
%
 
 
 
 
Senior Secured First Lien Term Loan B (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(19)(31)
 
3/31/2019
 
1,191,410

 
1,191,410

 
1,191,410

 
0.2
%
 
 
 
 
Senior Secured First Lien Term Loan C (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(10)(19)(32)
 
3/31/2019
 
8,426,519

 
4,060,381

 
4,213,260

 
0.8
%
 
 
 
 
Senior Secured First Lien Term Loan D (LIBOR + 9.50% PIK, 1.25% LIBOR Floor)(10)(19)
 
3/31/2019
 
5,297,476

 

 

 
0.0
%
 
 
 
 
Revolving Credit Facility (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(19)
 
3/31/2019
 
725,552

 
725,552

 
725,552

 
0.1
%
 
 
 
 
Revolving Credit Facility (ABR + 3.50% Cash, 3.75% ABR Floor)(30)
 
3/31/2019
 
1,195,298

 
1,195,298

 
1,195,298

 
0.2
%
 
 
 
 
Common Units(29)
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
19,695,640

 
10,032,026

 
10,184,905

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crow Precision Components, LLC
 
Aerospace & Defense
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)
 
9/30/2019
 
13,540,000

 
13,540,000

 
13,309,278

 
2.6
%
 
 
 
 
350 units of outstanding equity in Wingman Holdings, Inc.
 
 
 

 
700,000

 
277,790

 
0.1
%
 
 
 
 
 
 
 
 
13,540,000

 
14,240,000

 
13,587,068

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DHISCO Electronic Distribution, Inc.
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan A (LIBOR + 6.50%, 1.50% LIBOR Floor)(19)
 
11/10/2019
 
3,809,524

 
3,809,524

 
3,809,524

 
0.8
%
 
 
 
 
Senior Secured First Lien Term Loan B (LIBOR + 9.00% PIK, 1.50% LIBOR Floor)(19)
 
11/10/2019
 
13,391,667

 
13,391,667

 
13,391,667

 
2.6
%
 
 
 
 
Senior Secured First Lien Term Loan C (LIBOR + 10.25% PIK, 1.50% LIBOR Floor)(19)
 
11/10/2019
 
11,484,524

 
11,484,524

 
11,484,524

 
2.3
%
 
 
 
 
Senior Secured First Lien Term Loan D (LIBOR + 11.25% PIK, 1.50% LIBOR Floor)(10)(19)
 
11/10/2019
 
10,688,533

 
4,705,427

 
4,730,424

 
0.9
%
 
 
 
 
Equity - 1,230,769 Units(22)
 
 
 

 
1,230,769

 

 
0.0
%
 
 
 
 
 
 
 
 
39,374,248

 
34,621,911

 
33,416,139

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dream Finders Homes, LLC
 
Construction & Building
 
Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)
 
10/1/2018
 
6,346,036

 
6,271,605

 
6,362,472

 
1.2
%
 
 
 
 
5,000 common units represent 5% of the outstanding equity interest of Dream Finders Holdings, LLC
 
 
 

 
180,000

 
2,545,777

 
0.5
%
 
 
 
 
 
 
 
 
6,346,036

 
6,451,605

 
8,908,249

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dynamic Energy Services International LLC
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan (13.50% PIK + LIBOR)(18)
 
3/6/2018
 
16,458,105

 
16,458,105

 
14,009,304

 
2.7
%
 
 
 
 
 
 
 
 
16,458,105

 
16,458,105

 
14,009,304

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Essex Crane Rental Corp.(12)
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)(10)(19)
 
5/13/2019
 
23,991,347

 
20,460,116

 
112,519

 
0.0
%
 
 
 
 
 
 
 
 
23,991,347

 
20,460,116

 
112,519

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
11,937,500

 
11,937,500

 
12,088,629

 
2.4
%
 
 
 
 
 
 
 
 
11,937,500

 
11,937,500

 
12,088,629

 
 

F-6



Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Footprint Acquisition, LLC
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)(18)
 
2/27/2020
 
5,250,102

 
5,250,102

 
5,322,711

 
1.0
%
 
 
 
 
Preferred Equity (8.75% PIK)
 
 
 
5,749,795

 
5,749,795

 
5,749,508

 
1.1
%
 
 
 
 
150.0 units of Common Stock(23)
 
 
 

 

 
1,171,650

 
0.2
%
 
 
 
 
 
 
 
 
10,999,897

 
10,999,897

 
12,243,869

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freedom Powersports, LLC
 
Automotive
 
Senior Secured First Lien Term Loan (LIBOR + 10.75% Cash, 1.50% LIBOR Floor)(19)
 
9/26/2019
 
13,520,000

 
13,520,000

 
13,574,756

 
2.7
%
 
 
 
 
 
 
 
 
13,520,000

 
13,520,000

 
13,574,756

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
53,822,555

 
53,822,555

 
52,783,780

 
10.3
%
 
 
 
 
 
 
 
 
53,822,555

 
53,822,555

 
52,783,780

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heligear Acquisition Co.
 
Aerospace & Defense
 
Senior Secured First Lien Note (10.25% Cash)
 
10/15/2019
 
20,000,000

 
20,000,000

 
21,047,400

 
4.1
%
 
 
 
 
 
 
 
 
20,000,000

 
20,000,000

 
21,047,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impact Sales, LLC(7)(37)
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 7.00%, 1.00% LIBOR Floor)(19)
 
12/30/2021
 
2,625,000

 
2,625,000

 
2,625,000

 
0.5
%
 
 
 
 
 
 
 
 
2,625,000

 
2,625,000

 
2,625,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
JD Norman Industries, Inc.
 
Automotive
 
Senior Secured First Lien Term Loan (LIBOR + 12.25% Cash)
 
3/6/2019
 
21,000,000

 
21,000,000

 
20,110,650

 
3.9
%
 
 
 
 
 
 
 
 
21,000,000

 
21,000,000

 
20,110,650

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jordan Reses Supply Company, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan (LIBOR + 11.00%, 1.00% LIBOR Floor)(19)
 
4/24/2020
 
20,000,000

 
20,000,000

 
20,200,000

 
4.0
%
 
 
 
 
 
 
 
 
20,000,000

 
20,000,000

 
20,200,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lighting Science Group Corporation
 
Containers, Packaging & Glass
 
Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(19)
 
2/19/2019
 
16,134,768

 
15,645,247

 
15,117,471

 
3.0
%
 
 
 
 
Warrants to purchase 0.94% of the outstanding equity
 
2/19/2024
 

 
955,680

 
45,000

 
0.0
%
 
 
 
 
 
 
 
 
16,134,768

 
16,600,927

 
15,162,471

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LSF9 Atlantis Holdings, LLC
 
Retail
 
Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)
 
1/15/2021
 
9,625,000

 
9,540,316

 
9,739,634

 
1.9
%
 
 
 
 
 
 
 
 
9,625,000

 
9,540,316

 
9,739,634

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
 
1/31/2017
 
15,848,602

 
15,848,602

 
15,848,602

 
3.1
%
 
 
 
 
Senior Secured Second Lien Term Loan (12.00% Cash)
 
5/4/2017
 
15,000,000

 
15,000,000

 
15,000,000

 
2.9
%
 
 
 
 
 
 
 
 
30,848,602

 
30,848,602

 
30,848,602

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miratech Intermediate Holdings, Inc.(12)
 
Automotive
 
Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(18)
 
5/9/2019
 
12,595,105

 
12,595,105

 
12,442,326

 
2.5
%
 
 
 
 
 
 
 
 
12,595,105

 
12,595,105

 
12,442,326

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Momentum Telecom, Inc.
 
Telecommunications
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(18)
 
3/10/2019
 
11,609,652

 
11,609,652

 
11,725,748

 
2.3
%
 
 
 
 
 
 
 
 
11,609,652

 
11,609,652

 
11,725,748

 
 

F-7



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

 
35,631,635

 
7.0
%
 
 
 
 
 
 
 
 
35,278,846

 
35,278,846

 
35,631,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
25,000,000

 
4.9
%
 
 
 
 
 
 
 
 
25,000,000

 
25,000,000

 
25,000,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NorthStar Group Services, Inc.
 
Construction & Building
 
Unsecured Debt (2.5% Cash, 15.5% PIK)
 
10/24/2019
 
27,164,328

 
27,164,328

 
27,168,946

 
5.3
%
 
 
 
 
 
 
 
 
27,164,328

 
27,164,328

 
27,168,946

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
20,756,842

 
20,756,843

 
20,518,139

 
4.0
%
 
 
 
 
 
 
 
 
20,756,842

 
20,756,843

 
20,518,139

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Plastics Group, Inc.
 
Chemicals, Plastics & Rubber
 
Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)
 
2/28/2019
 
21,941,676

 
21,941,676

 
21,675,962

 
4.2
%
 
 
 
 
 
 
 
 
21,941,676

 
21,941,676

 
21,675,962

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Path Medical, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(19)
 
10/11/2021
 
9,339,972

 
8,856,817

 
8,963,758

 
1.8
%
 
 
 
 
Senior Secured First Lien Term Loan A (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(19)
 
10/11/2021
 
2,808,500

 
2,808,500

 
2,695,374

 
0.5
%
 
 
 
 
Warrants to purchase 1.56% of the outstanding common shares(34)
 
1/9/2027
 

 
499,751

 
499,751

 
0.1
%
 
 
 
 
 
 
 
 
12,148,472

 
12,165,068

 
12,158,883

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Point.360
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash)
 
7/8/2020
 
1,976,045

 
1,976,045

 
1,896,884

 
0.4
%
 
 
 
 
Equity - 479,283 Common Shares(25)
 
 
 

 
129,406

 
233,890

 
0.1
%
 
 
 
 
Warrants to purchase 2.8% of the outstanding common shares(26)
 
7/8/2020
 

 
52,757

 
154,666

 
0.0
%
 
 
 
 
 
 
 
 
1,976,045

 
2,158,208

 
2,285,440

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prestige Industries LLC
 
Services:  Business
 
Senior Secured Second Lien Term Loan (10.00% Cash, 3.00% PIK)(10)
 
11/1/2017
 
7,738,835

 
7,596,890

 
2,839,920

 
0.6
%
 
 
 
 
Warrants to purchase 0.63% of the outstanding common units
 
11/1/2017
 

 
151,855

 

 
0.0
%
 
 
 
 
 
 
 
 
7,738,835

 
7,748,745

 
2,839,920

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prince Mineral Holding Corp.(8)
 
Wholesale
 
Senior Secured First Lien Note (11.50%)
 
12/15/2019
 
6,800,000

 
6,758,315

 
6,664,000

 
1.3
%
 
 
 
 
 
 
 
 
6,800,000

 
6,758,315

 
6,664,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reddy Ice Corporation
 
Beverage & 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

 
14,620,000

 
2.9
%
 
 
 
 
 
 
 
 
17,000,000

 
17,000,000

 
14,620,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Response Team Holdings, LLC
 
Construction & Building
 
Preferred Equity (12.00% PIK)(10)
 
 
 
6,448,253

 
5,796,888

 
1,612,063

 
0.3
%
 
 
 
 
Warrants to purchase 7.2% of the outstanding common units
 
3/28/2019
 

 
429,012

 

 
0.0
%
 
 
 
 
 
 
 
 
6,448,253

 
6,225,900

 
1,612,063

 
 

F-8



Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sendero Drilling Company, LLC
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)
 
3/18/2019
 
3,630,593

 
3,219,462

 
3,666,899

 
0.7
%
 
 
 
 
Warrants to purchase 5.52% of the outstanding common units
 
3/18/2019
 

 
793,523

 
5,399,817

 
1.1
%
 
 
 
 
 
 
 
 
3,630,593

 
4,012,985

 
9,066,716

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seotowncenter, Inc.(12)
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(19)
 
9/11/2019
 
24,480,250

 
24,480,250

 
24,245,729

 
4.7
%
 
 
 
 
3,249.697 shares of Common
Stock(14)
 
 
 

 
500,000

 
245,067

 
0.0
%
 
 
 
 
 
 
 
 
24,480,250

 
24,980,250

 
24,490,796

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ship Supply Acquisition Corporation
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(19)
 
7/31/2020
 
7,967,498

 
7,967,498

 
7,808,705

 
1.5
%
 
 
 
 
 
 
 
 
7,967,498

 
7,967,498

 
7,808,705

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SMART Financial Operations, LLC(7)
 
Retail
 
Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)(19)
 
11/22/2021
 
2,775,000

 
2,775,000

 
2,775,000

 
0.5
%