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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 Corpexhibit211.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 March 31, 2017
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 ý 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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer ¨          Accelerated filer ý        Non-accelerated filer ¨ (Do not check if a smaller reporting company)      
Smaller reporting company ¨       Emerging growth company ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
 
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 May 8, 2017.




MEDLEY CAPITAL CORPORATION
TABLE OF CONTENTS
 
 
Part I.
Financial Information
 
 
 
 
Item I.
Financial Statements
 
 
 
 
 
Consolidated Statements of Assets and Liabilities as of March 31, 2017 (unaudited) and September 30, 2016
 
 
 
 
Consolidated Statements of Operations for the three and six months ended March 31, 2017 and 2016 (unaudited)
 
 
 
 
Consolidated Statements of Changes in Net Assets for the six months ended March 31, 2017 and 2016 (unaudited)
 
 
 
 
Consolidated Statements of Cash Flows for the six months ended March 31, 2017 and 2016 (unaudited)
 
 
 
 
Consolidated Schedules of Investments as of March 31, 2017 (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
 
March 31, 2017
 
September 30, 2016
ASSETS
(unaudited)
 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (amortized cost of $770,315,852 and $813,813,853, respectively)
$
717,295,079

 
$
767,302,020

Controlled investments (amortized cost of $236,535,895 and $189,077,188, respectively)
176,021,819

 
136,882,275

Affiliated investments (amortized cost of $35,350,783 and $10,000,000, respectively)
32,824,178

 
10,000,000

Total investments at fair value
926,141,076


914,184,295

Cash and cash equivalents
83,522,983

 
104,485,263

Interest receivable
10,050,136

 
8,982,154

Other assets
918,148

 
893,140

Fees receivable
882,187

 
1,403,383

Receivable for dispositions and investments sold
680,071

 
689,379

Deferred offering costs
306,879

 
242,991

Total assets
$
1,022,501,480


$
1,030,880,605

 
 
 
 
LIABILITIES
 

 
 

Revolving credit facility payable (net of debt issuance costs of $1,708,106 and $3,589,844, respectively)
$
32,291,894

 
$
10,410,156

Term loan payable (net of debt issuance costs of $1,842,174 and $2,196,756, respectively)
172,157,826

 
171,803,244

Notes payable (net of debt issuance costs of $4,712,816 and $4,629,649, respectively)
172,162,833

 
172,883,176

SBA debentures payable (net of debt issuance costs of $3,186,292 and $3,525,029, respectively)
146,813,708

 
146,474,971

Management and incentive fees payable (See note 6)
4,478,959

 
4,558,619

Accounts payable and accrued expenses
2,272,749

 
2,662,950

Deferred tax liability
2,003,724

 
2,003,724

Interest and fees payable
1,843,189

 
1,714,023

Administrator expenses payable (See note 6)
997,074

 
990,236

Deferred revenue
282,426

 
369,805

Due to affiliate
150,015

 
90,559

Offering costs payable
31,855

 

Total liabilities
$
535,486,252


$
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
705,313,281

 
705,326,059

Accumulated undistributed net investment income
5,020,181

 
10,811,762

Accumulated net realized gain/(loss) from investments
(105,745,113
)
 
(99,000,266
)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes
(117,627,595
)
 
(100,272,887
)
Total net assets
487,015,228


516,919,142

Total liabilities and net assets
$
1,022,501,480


$
1,030,880,605

 
 
 
 
NET ASSET VALUE PER SHARE
$
8.94

 
$
9.49

 
See accompanying notes to consolidated financial statements.

F-1



Medley Capital Corporation

Consolidated Statements of Operations
 
 
For the three months ended
March 31
 
For the six months ended
March 31
 
2017
 
2016
 
2017
 
2016
INVESTMENT INCOME:
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
Interest from investments
 

 
 

 
 

 
 

Non-controlled/non-affiliated investments:
 

 
 

 
 

 
 

Cash
$
16,890,427

 
$
25,273,975

 
$
35,034,733

 
$
53,399,996

Payment-in-kind
2,824,976

 
2,351,791

 
5,685,943

 
3,573,903

Affiliated investments:
 

 
 
 
 

 
 
Cash
487,874

 
166,750

 
1,030,696

 
333,500

Payment-in-kind
100,146

 

 
201,229

 

Controlled investments:
 

 
 
 
 

 
 
Cash
353,528

 
22,477

 
696,686

 
878,103

Payment-in-kind
1,071,342

 
1,130,729

 
3,042,902

 
2,126,685

Total interest income
21,728,293

 
28,945,722

 
45,692,189

 
60,312,187

Dividend income, net of provisional taxes ($0 and $0, respectively)
1,050,000

 

 
1,694,953

 

Interest from cash and cash equivalents
40,367

 
10,168

 
63,779

 
12,403

Fee income (See note 9)
1,538,328

 
1,757,996

 
2,962,132

 
4,816,623

Total investment income
24,356,988

 
30,713,886

 
50,413,053

 
65,141,213

 
 
 
 
 
 
 
 
EXPENSES:
 

 
 

 
 

 
 

Base management fees (See note 6)
4,496,286

 
4,876,228

 
9,010,901

 
10,222,986

Incentive fees (See note 6)

 
3,148,783

 
895,675

 
7,065,252

Interest and financing expenses
9,143,488

 
7,920,197

 
16,917,459

 
14,890,282

Administrator expenses (See note 6)
997,074

 
1,042,519

 
1,913,140

 
1,958,896

General and administrative
783,044

 
453,178

 
1,480,049

 
1,163,170

Professional fees
662,693

 
555,585

 
1,313,804

 
1,188,106

Directors fees
150,009

 
130,062

 
319,793

 
263,903

Insurance
99,455

 
135,410

 
198,910

 
270,819

Expenses before management and incentive fee waivers
16,332,049

 
18,261,962

 
32,049,731

 
37,023,414

Management fee waiver (See note 6)
(17,327
)
 
(71,604
)
 
(37,272
)
 
(71,604
)
Incentive fee waiver (See note 6)

 
(2,051,784
)
 
(43,663
)
 
(2,051,784
)
Total expenses, net of management and incentive fee waivers
16,314,722

 
16,138,574

 
31,968,796

 
34,900,026

Net investment income before excise taxes
8,042,266

 
14,575,312

 
18,444,257

 
30,241,187

Excise tax expense

 

 
(267,183
)
 

NET INVESTMENT INCOME
8,042,266

 
14,575,312

 
18,177,074

 
30,241,187

 
 
 
 
 
 
 
 
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
 

 
 

 
 

 
 

Net realized gain/(loss) from investments
9,948

 
99,234

 
(6,288,483
)
 
5,477,282

Net unrealized appreciation/(depreciation) on investments
(19,843,904
)
 
(14,093,093
)
 
(17,354,708
)
 
(74,116,712
)
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments

 
(133,490
)
 

 
(358,106
)
Loss on extinguishment of debt
(456,364
)
 

 
(456,364
)
 

Net gain/(loss) on investments
(20,290,320
)
 
(14,127,349
)
 
(24,099,555
)
 
(68,997,536
)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$
(12,248,054
)
 
$
447,963

 
$
(5,922,481
)
 
$
(38,756,349
)
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE
$
(0.22
)
 
$
0.01

 
$
(0.11
)
 
$
(0.69
)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER  COMMON SHARE
$
0.15

 
$
0.26

 
$
0.33

 
$
0.54

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

 
55,761,062

 
54,474,211

 
56,044,037

DIVIDENDS DECLARED PER COMMON SHARE
$
0.22

 
$
0.30

 
$
0.44

 
$
0.60

 
See accompanying notes to consolidated financial statements.

F-2



Medley Capital Corporation
 
Consolidated Statements of Changes in Net Assets
 

 
For the six months ended March 31
 
2017
 
2016
OPERATIONS:
(unaudited)
 
(unaudited)
Net investment income
$
18,177,074

 
$
30,241,187

Net realized gain/(loss) from investments
(6,288,483
)
 
5,477,282

Net unrealized appreciation/(depreciation) on investments
(17,354,708
)
 
(74,116,712
)
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments

 
(358,106
)
Loss on extinguishment of debt
(456,364
)
 

Net increase/(decrease) in net assets from operations
(5,922,481
)
 
(38,756,349
)
SHAREHOLDER DISTRIBUTIONS:
 

 
 

Distributions from net investment income
(23,968,655
)
 
(33,645,784
)
Net decrease in net assets from shareholder distributions
(23,968,655
)
 
(33,645,784
)
COMMON SHARE TRANSACTIONS:
 

 
 

Repurchase of common stock under stock repurchase program (0 and 1,573,741 shares, respectively)

 
(10,699,990
)
Offering costs
(12,778
)
 
(46,430
)
Net increase/(decrease) in net assets from common share transactions
(12,778
)
 
(10,746,420
)
Total increase/(decrease) in net assets
(29,903,914
)
 
(83,148,553
)
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 $5,020,181 and $16,947,233, respectively
$
487,015,228

 
$
536,771,831

 
 
 
 
Net asset value per common share
$
8.94

 
$
9.80

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

 
54,763,411

 
See accompanying notes to consolidated financial statements.
 



F-3



Medley Capital Corporation
 
Consolidated Statements of Cash Flows
 
For the six months ended March 31
 
2017
 
2016
Cash flows from operating activities
(unaudited)
 
(unaudited)
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
$
(5,922,481
)
 
$
(38,756,349
)
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
(9,332,277
)
 
(7,553,996
)
Net amortization of premium/(discount) on investments
(680,657
)
 
(446,191
)
Amortization of debt issuance costs
3,157,516

 
1,701,963

Net realized (gain)/loss from investments
6,288,483

 
(5,477,282
)
Loss on extinguishment of debt
456,364

 

Net deferred income taxes

 
358,106

Net unrealized (appreciation)/depreciation on investments
17,354,708

 
74,116,712

Proceeds from sale and settlements of investments
75,123,093

 
195,075,586

Purchases, originations and participations
(100,710,131
)
 
(75,712,392
)
(Increase)/decrease in operating assets:
 

 
 

Interest receivable
(1,067,982
)
 
(423,207
)
Fees receivable
521,196

 
(915,606
)
Other assets
(25,008
)
 
194,325

Receivable for dispositions and investments sold
9,308

 
184,586

Increase/(decrease) in operating liabilities:
 

 
 

Management and incentive fees payable, net
(79,660
)
 
(4,060,911
)
Accounts payable and accrued expenses
(390,201
)
 
(709,609
)
Interest and fees payable
129,166

 
517,659

Administrator expenses payable
6,838

 
41,672

Deferred revenue
(87,379
)
 
(42,839
)
Due to affiliate
59,456

 
(109,164
)
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES
(15,189,648
)
 
137,983,063

 
 
 
 
Cash flows from financing activities
 

 
 

Repurchase of common stock under stock repurchase program

 
(10,699,990
)
Offering costs paid
(44,811
)
 
(24,720
)
Borrowings on debt
107,363,443

 
118,112,825

Paydowns on debt
(88,000,000
)
 
(211,500,000
)
Debt issuance costs paid
(1,122,609
)
 
(3,232,365
)
Payments of cash dividends
(23,968,655
)
 
(33,645,784
)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES
(5,772,632
)
 
(140,990,034
)
 
 
 
 
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
(20,962,280
)
 
(3,006,971
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
104,485,263

 
15,714,256

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
83,522,983

 
$
12,707,285

 
 
 
 
Supplemental Information:
 

 
 

Interest paid during the period
$
13,592,326

 
$
10,018,155

Supplemental non-cash information:
 

 
 

Payment-in-kind interest income
$
8,930,074

 
$
5,700,588

Net amortization of premium/(discount) on investments
$
680,657

 
$
446,191

Amortization of debt issuance costs
$
(3,157,516
)
 
$
(1,701,963
)
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

March 31, 2017
(unaudited)
Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Controlled/Non-Affiliated Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accupac, Inc.
 
Containers, Packaging & Glass
 
Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)(13)
 
7/14/2020
 
27,000,000

 
27,000,000

 
27,000,000

 
5.6
%
 
 
 
 
 
 
 
 
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
 
14,970,966

 
14,970,966

 
15,270,385

 
3.1
%
 
 
 
 
 
 
 
 
14,970,966

 
14,970,966

 
15,270,385

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)(13)
 
10/31/2018
 
15,753,937

 
15,753,937

 
15,753,937

 
3.2
%
 
 
 
 
 
 
 
 
15,753,937

 
15,753,937

 
15,753,937

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Dental Partners, Inc.
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)
 
9/25/2023
 
6,500,000

 
6,500,000

 
6,500,000

 
1.3
%
 
 
 
 
 
 
 
 
6,500,000

 
6,500,000

 
6,500,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Autosplice, Inc.
 
High Tech Industries
 
Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(14)
 
6/30/2019
 
14,479,608

 
14,479,608

 
14,624,404

 
3.0
%
 
 
 
 
 
 
 
 
14,479,608

 
14,479,608

 
14,624,404

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Avantor Performance Materials Holdings, LLC(7)(9)
 
Chemicals, Plastics & Rubber
 
Senior Secured Second Lien Term Loan (LIBOR + 8.25% Cash, 1.00% LIBOR Floor)(13)
 
3/10/2025
 
957,895

 
947,929

 
959,145

 
0.2
%
 
 
 
 
 
 
 
 
957,895

 
947,929

 
959,145

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Backcountry.com, LLC
 
Retail
 
Senior Secured First Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(14)
 
6/30/2020
 
2,186,391

 
2,186,391

 
2,208,255

 
0.5
%
 
 
 
 
 
 
 
 
2,186,391

 
2,186,391

 
2,208,255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Be Green Packaging, LLC
 
Containers, Packaging & Glass
 
Equity - 417 Common Units
 
 
 

 
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)(13)
 
4/24/2020
 
7,803,571

 
7,803,571

 
7,472,237

 
1.5
%
 
 
 
 
Senior Secured First Lien Delayed Draw (LIBOR + 9.00%, 1.00% LIBOR Floor)(13)
 
4/24/2020
 

 

 

 
0.0
%
 
 
 
 
Revolver (LIBOR + 9.00%, 1.00% LIBOR Floor)(13)(17)
 
4/24/2020
 
267,857

 
267,857

 
232,804

 
0.0
%
 
 
 
 
 
 
 
 
8,071,428

 
8,071,428

 
7,705,041

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comfort Holding, LLC
 
Consumer goods:  Durable
 
Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)(13)
 
2/3/2025
 
1,000,000

 
960,151

 
960,000

 
0.2
%
 
 
 
 
 
 
 
 
1,000,000

 
960,151

 
960,000

 
 

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)(14)
 
6/17/2021
 
12,500,000

 
12,414,987

 
12,500,000

 
2.6
%
 
 
 
 
 
 
 
 
12,500,000

 
12,414,987

 
12,500,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CP OPCO, LLC(7)(9)
 
Services:  Consumer
 
Senior Secured First Lien Term Loan A (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(14)(20)
 
3/31/2019
 
2,913,334

 
2,913,334

 
2,913,334

 
0.6
%
 
 
 
 
Senior Secured First Lien Term Loan B (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(14)(20)
 
3/31/2019
 
1,213,889

 
1,213,889

 
1,213,889

 
0.2
%
 
 
 
 
Senior Secured First Lien Term Loan C (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(10)(14)(15)
 
3/31/2019
 
8,649,655

 
4,060,381

 
4,324,827

 
0.9
%
 
 
 
 
Senior Secured First Lien Term Loan D (LIBOR + 9.50% PIK, 1.25% LIBOR Floor)(10)(14)
 
3/31/2019
 
5,297,476

 

 

 
0.0
%
 
 
 
 
Revolving Credit Facility (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(14)
 
3/31/2019
 
1,920,849

 
1,920,849

 
1,920,849

 
0.4
%
 
 
 
 
Senior Secured First Lien Term Loan (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(14)
 
4/28/2017
 
116,088

 
116,088

 
116,088

 
0.0
%
 
 
 
 
Equity - 232 Common Units
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
20,111,291

 
10,224,541

 
10,488,987

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crow Precision Components, LLC
 
Aerospace & Defense
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(13)
 
9/30/2019
 
13,365,000

 
13,365,000

 
13,256,209

 
2.7
%
 
 
 
 
Equity - 350 Common Units
 
 
 

 
700,000

 
273,809

 
0.1
%
 
 
 
 
 
 
 
 
13,365,000

 
14,065,000

 
13,530,018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DHISCO Electronic Distribution, Inc.
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan A (LIBOR + 6.50%, 1.50% LIBOR Floor)(14)
 
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)(14)
 
11/10/2019
 
13,870,558

 
13,870,558

 
13,870,558

 
2.8
%
 
 
 
 
Senior Secured First Lien Term Loan C (LIBOR + 10.25% PIK, 1.50% LIBOR Floor)(10)(14)
 
11/10/2019
 
11,944,829

 
11,604,473

 
5,972,414

 
1.2
%
 
 
 
 
Senior Secured First Lien Term Loan D (LIBOR + 11.25% PIK, 1.50% LIBOR Floor)(10)(14)
 
11/10/2019
 
11,153,979

 
4,705,427

 

 
0.0
%
 
 
 
 
Equity - 1,230,769 Class A Units
 
 
 

 
1,230,769

 

 
0.0
%
 
 
 
 
 
 
 
 
40,778,890

 
35,220,751

 
23,652,496

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dynamic Energy Services International LLC
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan (13.50% PIK + LIBOR)(13)
 
3/6/2018
 
17,025,910

 
17,025,910

 
14,492,625

 
3.0
%
 
 
 
 
 
 
 
 
17,025,910

 
17,025,910

 
14,492,625

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Essex Crane Rental Corp.(12)
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)(10)(14)
 
5/13/2019
 
24,810,848

 
20,460,116

 
112,641

 
0.0
%
 
 
 
 
 
 
 
 
24,810,848

 
20,460,116

 
112,641

 
 
 
 
 
 
 
 
 
 


 


 


 
 
FKI Security Group, LLC(12)
 
Capital Equipment
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(14)
 
3/30/2020
 
11,843,750

 
11,843,750

 
11,843,750

 
2.5
%
 
 
 
 
 
 
 
 
11,843,750

 
11,843,750

 
11,843,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Footprint Acquisition, LLC
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)(13)
 
2/27/2020
 
5,183,864

 
5,183,864

 
5,183,864

 
1.1
%
 
 
 
 
Preferred Equity (8.75% PIK)
 
 
 
6,006,952

 
6,006,952

 
6,006,950

 
1.2
%
 
 
 
 
Equity - 150 Common Units
 
 
 

 

 
595,874

 
0.1
%
 
 
 
 
 
 
 
 
11,190,816

 
11,190,816

 
11,786,688

 
 

F-6



Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freedom Powersports, LLC
 
Automotive
 
Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.50% LIBOR Floor)(14)
 
9/26/2019
 
13,150,000

 
13,150,000

 
13,203,258

 
2.7
%
 
 
 
 
 
 
 
 
13,150,000

 
13,150,000

 
13,203,258

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Friedrich Holdings, Inc.
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)(13)
 
2/7/2023
 
10,000,000

 
10,000,000

 
10,000,000

 
2.1
%
 
 
 
 
 
 
 
 
10,000,000

 
10,000,000

 
10,000,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Harrison Gypsum,
LLC(12)
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.50% PIK, 1.50% LIBOR Floor)(13)
 
12/21/2018
 
52,592,777

 
52,592,777

 
50,523,777

 
10.4
%
 
 
 
 
 
 
 
 
52,592,777

 
52,592,777

 
50,523,777

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

 
20,000,000

 
21,102,000

 
4.3
%
 
 
 
 
 
 
 
 
20,000,000

 
20,000,000

 
21,102,000

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Impact Sales,
LLC(7)(9)(19)
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 7.00%, 1.00% LIBOR Floor)(14)
 
12/30/2021
 
2,618,438

 
2,618,438

 
2,618,438

 
0.5
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 7.00%, 1.00% LIBOR Floor)(14)
 
12/30/2021
 
120,313

 
120,313

 
120,313

 
0.0
%
 
 
 
 
 
 
 
 
2,738,751

 
2,738,751

 
2,738,751

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
JD Norman Industries, Inc.
 
Automotive
 
Senior Secured First Lien Term Loan (LIBOR + 12.25% Cash)
 
3/6/2019
 
20,700,000

 
20,700,000

 
20,462,571

 
4.2
%
 
 
 
 
 
 
 
 
20,700,000

 
20,700,000

 
20,462,571

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Jordan Reses Supply Company, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan (LIBOR + 11.00%, 1.00% LIBOR Floor)(14)
 
4/24/2020
 
20,000,000

 
20,000,000

 
20,200,000

 
4.2
%
 
 
 
 
 
 
 
 
20,000,000

 
20,000,000

 
20,200,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
L & S Plumbing Partnership, Ltd.
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)
 
2/15/2022
 
22,078,125

 
22,078,125

 
22,078,125

 
4.5
%
 
 
 
 
 
 
 
 
22,078,125

 
22,078,125

 
22,078,125

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lighting Science Group Corporation
 
Containers, Packaging & Glass
 
Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(14)
 
2/19/2019
 
16,215,576

 
15,775,439

 
15,369,447

 
3.2
%
 
 
 
 
Warrants - 0.94% of Outstanding Equity
 
2/19/2024
 

 
955,680

 
20,000

 
0.0
%
 
 
 
 
 
 
 
 
16,215,576

 
16,731,119

 
15,389,447

 
 
 
 
 
 
 
 
 
 


 


 


 
 
LSF9 Atlantis Holdings, LLC
 
Retail
 
Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(14)
 
1/15/2021
 
9,500,000

 
9,419,486

 
9,629,675

 
2.0
%
 
 
 
 
 
 
 
 
9,500,000

 
9,419,486

 
9,629,675

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Merchant Cash and Capital, LLC
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured First Lien Delayed Draw (LIBOR + 8.00% Cash, 5.00% PIK, 3.00% LIBOR Floor)(13)
 
5/31/2017
 
14,096,720

 
14,096,720

 
14,096,720

 
2.9
%
 
                                                 
 
 
Senior Secured Second Lien Term Loan (12.00% Cash, 5% PIK)
 
5/4/2017
 
15,000,000

 
15,000,000

 
15,000,000

 
3.1
%
 
 
 
 
 
 
 
 
29,096,720

 
29,096,720

 
29,096,720

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Nation Safe Drivers Holdings, Inc.
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)(14)
 
9/29/2020
 
35,278,846

 
35,278,846

 
35,631,635

 
7.3
%
 
 
 
 
 
 
 
 
35,278,846

 
35,278,846

 
35,631,635

 
 

F-7



Company(1)
 
Industry
 
Type of Investment
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of Net Assets(4)
 
 
 
 
 
 
 
 


 


 


 
 
Nielsen & Bainbridge, LLC
 
Consumer goods:  Durable
 
Senior Secured Second Lien Term Loan (LIBOR + 9.25% Cash, 1.00% LIBOR Floor)(13)
 
8/15/2021
 
25,000,000

 
25,000,000

 
25,000,000

 
5.2
%
 
 
 
 
 
 
 
 
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
 
28,240,337

 
28,240,337

 
28,240,337

 
5.8
%
 
 
 
 
 
 
 
 
28,240,337

 
28,240,337

 
28,240,337

 
 
 
 
 
 
 
 
 
 


 


 


 
 
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
 
20,889,280

 
20,889,281

 
20,837,057

 
4.3
%
 
 
 
 
 
 
 
 
20,889,280

 
20,889,281

 
20,837,057

 
 
 
 
 
 
 
 
 
 


 


 


 
 
The Plastics Group, Inc.
 
Chemicals, Plastics & Rubber
 
Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)
 
2/28/2019
 
21,829,737

 
21,829,737

 
21,708,145

 
4.5
%
 
 
 
 
 
 
 
 
21,829,737

 
21,829,737

 
21,708,145

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Path Medical, LLC
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(14)
 
10/11/2021
 
9,186,194

 
8,721,770

 
8,816,174

 
1.8
%
 
 
 
 
Senior Secured First Lien Term Loan A (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(14)
 
10/11/2021
 
2,808,500

 
2,808,500

 
2,695,374

 
0.6
%
 
 
 
 
Warrants - 1.56% of Outstanding Equity
 
1/9/2027
 

 
499,751

 
499,751

 
0.1
%
 
 
 
 
 
 
 
 
11,994,694

 
12,030,021

 
12,011,299

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Point.360
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash)
 
7/8/2020
 
2,022,975

 
2,022,976

 
1,776,213

 
0.4
%
 
 
 
 
Equity - 479,283 Common Units
 
 
 

 
129,406

 
119,821

 
0.1
%
 
 
 
 
Warrants - 2.8% of Outstanding Equity
 
7/8/2020
 

 
52,757

 
76,238

 
0.0
%
 
 
 
 
 
 
 
 
2,022,975

 
2,205,139

 
1,972,272

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Prestige Industries LLC
 
Services:  Business
 
Senior Secured Second Lien Term Loan (10.00% Cash, 3.00% PIK)(10)
 
11/1/2017
 
7,797,021

 
7,596,890

 
1,949,255

 
0.4
%
 
 
 
 
Warrants - 0.63% of Outstanding Equity
 
11/1/2017
 

 
151,855

 

 
0.0
%
 
 
 
 
 
 
 
 
7,797,021

 
7,748,745

 
1,949,255

 
 
 
 
 
 
 
 
 
 


 


 


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

 
6,761,307

 
6,919,000

 
1.4
%
 
 
 
 
 
 
 
 
6,800,000

 
6,761,307

 
6,919,000

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Reddy Ice Corporation
 
Beverage & Food
 
Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)(13)
 
11/1/2019
 
17,000,000

 
17,000,000

 
15,130,000

 
3.1
%
 
 
 
 
 
 
 
 
17,000,000

 
17,000,000

 
15,130,000

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Response Team Holdings, LLC
 
Construction & Building
 
Preferred Equity (12.00% PIK)(10)
 
 
 
6,641,700

 
5,796,824

 
1,660,425

 
0.3
%
 
 
 
 
Warrants - 7.2% of Outstanding Equity
 
3/28/2019
 

 
429,012

 

 
0.0
%
 
 
 
 
 
 
 
 
6,641,700

 
6,225,836

 
1,660,425

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sendero Drilling Company, LLC
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash)
 
3/18/2019
 
3,264,874

 
2,894,242

 
3,264,874

 
0.7
%
 
 
 
 
Warrants - 5.52% of Outstanding Equity
 
3/18/2019
 

 
793,523

 
5,399,816

 
1.1
%