Attached files
| file | filename |
|---|---|
| EX-32.2 - EXHIBIT 32.2 - PROSPECT CAPITAL CORP | psec10-kq22018ex322.htm |
| EX-32.1 - EXHIBIT 32.1 - PROSPECT CAPITAL CORP | psec10-kq22018ex321.htm |
| EX-31.2 - EXHIBIT 31.2 - PROSPECT CAPITAL CORP | psec10-kq22018ex312.htm |
| EX-31.1 - EXHIBIT 31.1 - PROSPECT CAPITAL CORP | psec10-kq22018ex311.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, 2017 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 7, 2018 | |
$0.001 par value | 361,527,348 | |
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, 2017, and those described from time to time in our future reports filed with the Securities and Exchange Commission.
3
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, 2017 | June 30, 2017 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Investments at fair value: | |||||||
Control investments (amortized cost of $1,895,360 and $1,840,731, respectively) | $ | 2,011,922 | $ | 1,911,775 | |||
Affiliate investments (amortized cost of $24,075 and $22,957, respectively) | 19,272 | 11,429 | |||||
Non-control/non-affiliate investments (amortized cost of $3,643,003 and $4,117,868, respectively) | 3,389,938 | 3,915,101 | |||||
Total investments at fair value (amortized cost of $5,562,438 and $5,981,556, respectively) | 5,421,132 | 5,838,305 | |||||
Cash | 474,476 | 318,083 | |||||
Receivables for: | |||||||
Interest, net | 14,432 | 9,559 | |||||
Other | 763 | 924 | |||||
Prepaid expenses | 546 | 1,125 | |||||
Due from Broker | 600 | — | |||||
Due from Prospect Administration (Note 13) | 2,082 | — | |||||
Due from Affiliate (Note 13) | 88 | 14 | |||||
Deferred financing costs on Revolving Credit Facility (Note 4) | 3,394 | 4,779 | |||||
Total Assets | 5,917,513 | 6,172,789 | |||||
Liabilities | |||||||
Revolving Credit Facility (Notes 4 and 8) | — | — | |||||
Prospect Capital InterNotes® (less unamortized debt issuance costs of $13,114 and $14,240, respectively) (Notes 7 and 8) | 824,383 | 966,254 | |||||
Convertible Notes (less unamortized debt issuance costs of $13,186 and $15,512, respectively) (Notes 5 and 8) | 889,233 | 937,641 | |||||
Public Notes (less unamortized discount and debt issuance costs of $9,963 and $10,981, respectively) (Notes 6 and 8) | 739,318 | 738,300 | |||||
Due to Prospect Capital Management (Note 13) | 47,629 | 48,249 | |||||
Interest payable | 39,180 | 38,630 | |||||
Dividends payable | 21,659 | 30,005 | |||||
Due to Prospect Administration (Note 13) | 1,935 | 1,910 | |||||
Accrued expenses | 3,615 | 4,380 | |||||
Other liabilities | 2,149 | 2,097 | |||||
Due to Broker | — | 50,371 | |||||
Total Liabilities | 2,569,101 | 2,817,837 | |||||
Commitments and Contingencies (Note 3) | — | — | |||||
Net Assets | $ | 3,348,412 | $ | 3,354,952 | |||
Components of Net Assets | |||||||
Common stock, par value $0.001 per share (1,000,000,000 common shares authorized; 360,980,752 and 360,076,933 issued and outstanding, respectively) (Note 9) | $ | 361 | $ | 360 | |||
Paid-in capital in excess of par (Note 9) | 3,998,406 | 3,991,317 | |||||
Accumulated overdistributed net investment income | (64,446 | ) | (54,039 | ) | |||
Accumulated net realized loss | (444,603 | ) | (439,435 | ) | |||
Net unrealized loss | (141,306 | ) | (143,251 | ) | |||
Net Assets | $ | 3,348,412 | $ | 3,354,952 | |||
Net Asset Value Per Share (Note 16) | $ | 9.28 | $ | 9.32 | |||
See notes to consolidated financial statements.
4
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, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Investment Income | |||||||||||||||
Interest income: | |||||||||||||||
Control investments | $ | 47,418 | $ | 48,281 | $ | 93,448 | $ | 94,190 | |||||||
Affiliate investments | — | — | 205 | — | |||||||||||
Non-control/non-affiliate investments | 75,833 | 87,465 | 148,263 | 174,125 | |||||||||||
Structured credit securities | 30,131 | 39,045 | 59,551 | 78,126 | |||||||||||
Total interest income | 153,382 | 174,791 | 301,467 | 346,441 | |||||||||||
Dividend income: | |||||||||||||||
Control investments | — | 1,282 | — | 3,522 | |||||||||||
Non-control/non-affiliate investments | 326 | 97 | 870 | 241 | |||||||||||
Total dividend income | 326 | 1,379 | 870 | 3,763 | |||||||||||
Other income: | |||||||||||||||
Control investments | 4,038 | 3,856 | 6,129 | 6,796 | |||||||||||
Non-control/non-affiliate investments | 4,654 | 3,454 | 12,513 | 6,312 | |||||||||||
Total other income (Note 10) | 8,692 | 7,310 | 18,642 | 13,108 | |||||||||||
Total Investment Income | 162,400 | 183,480 | 320,979 | 363,312 | |||||||||||
Operating Expenses | |||||||||||||||
Base management fee (Note 13) | 29,559 | 30,886 | 59,722 | 61,678 | |||||||||||
Income incentive fee (Note 13) | 18,298 | 21,101 | 34,231 | 40,831 | |||||||||||
Interest and credit facility expenses | 39,347 | 40,848 | 80,382 | 82,517 | |||||||||||
Allocation of overhead from Prospect Administration (Note 13) | (824 | ) | 2,657 | 2,704 | 6,190 | ||||||||||
Audit, compliance and tax related fees | 1,866 | 1,058 | 2,954 | 2,453 | |||||||||||
Directors’ fees | 112 | 112 | 225 | 225 | |||||||||||
Other general and administrative expenses | 850 | 2,413 | 3,837 | 6,094 | |||||||||||
Total Operating Expenses | 89,208 | 99,075 | 184,055 | 199,988 | |||||||||||
Net Investment Income | 73,192 | 84,405 | 136,924 | 163,324 | |||||||||||
Net Realized and Change in Unrealized Gains (Losses) from Investments | |||||||||||||||
Net realized gains (losses) | |||||||||||||||
Control investments | 2 | 178 | 11 | 183 | |||||||||||
Affiliate investments | — | — | 846 | 137 | |||||||||||
Non-control/non-affiliate investments | (5,675 | ) | (260 | ) | (5,093 | ) | 312 | ||||||||
Net realized (losses) gains | (5,673 | ) | (82 | ) | (4,236 | ) | 632 | ||||||||
Net change in unrealized gains (losses) | |||||||||||||||
Control investments | 44,425 | (11,068 | ) | 45,518 | 2,298 | ||||||||||
Affiliate investments | 1,533 | 853 | 6,726 | (1,273 | ) | ||||||||||
Non-control/non-affiliate investments | 8,737 | 26,896 | (50,300 | ) | 17,450 | ||||||||||
Net change in unrealized gains (losses) | 54,695 | 16,681 | 1,944 | 18,475 | |||||||||||
Net Realized and Net Change in Unrealized Gains (Losses) from Investments | 49,022 | 16,599 | (2,292 | ) | 19,107 | ||||||||||
Net realized losses on extinguishment of debt | (487 | ) | (124 | ) | (932 | ) | (185 | ) | |||||||
Net Increase in Net Assets Resulting from Operations | $ | 121,727 | $ | 100,880 | $ | 133,700 | $ | 182,246 | |||||||
Net increase in net assets resulting from operations per share | $ | 0.34 | $ | 0.28 | $ | 0.37 | $ | 0.51 | |||||||
Dividends declared per share | $ | (0.18 | ) | $ | (0.25 | ) | $ | (0.41 | ) | $ | (0.50 | ) | |||
See notes to consolidated financial statements.
5
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(in thousands, except share data)
(Unaudited)
Six Months Ended December 31, | |||||||
2017 | 2016 | ||||||
Operations | |||||||
Net investment income | $ | 136,924 | $ | 163,324 | |||
Net realized (losses) gains | (5,168 | ) | 447 | ||||
Net change in net unrealized losses | 1,944 | 18,475 | |||||
Net Increase in Net Assets Resulting from Operations | 133,700 | 182,246 | |||||
Distributions to Shareholders | |||||||
Distribution from net investment income | (146,559 | ) | (179,097 | ) | |||
Net Decrease in Net Assets Resulting from Distributions to Shareholders | (146,559 | ) | (179,097 | ) | |||
Common Stock Transactions | |||||||
Value of shares issued through reinvestment of dividends | 6,319 | 15,530 | |||||
Net Increase in Net Assets Resulting from Common Stock Transactions | 6,319 | 15,530 | |||||
Total (Decrease) Increase in Net Assets | (6,540 | ) | 18,679 | ||||
Net assets at beginning of period | 3,354,952 | 3,435,917 | |||||
Net Assets at End of Period (Accumulated Under (Overdistributed) Net Investment Income of ($64,446) and ($16,907), respectively) | $ | 3,348,412 | $ | 3,454,596 | |||
Common Stock Activity | |||||||
Shares issued through reinvestment of dividends | 903,819 | 1,893,049 | |||||
Net shares issued due to common stock activity | 903,819 | 1,893,049 | |||||
Shares issued and outstanding at beginning of period | 360,076,933 | 357,107,231 | |||||
Shares Issued and Outstanding at End of Period | 360,980,752 | 359,000,280 | |||||
See notes to consolidated financial statements.
6
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share data)
(Unaudited)
Six Months Ended December 31, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net increase in net assets resulting from operations | $ | 133,700 | $ | 182,246 | |||
Net realized losses on extinguishment of debt | 932 | 185 | |||||
Net realized losses (gains) on investments | 4,236 | (632 | ) | ||||
Net change in net unrealized (gains) losses on investments | (1,944 | ) | (18,475 | ) | |||
Amortization of discounts and (accretion of premiums), net | 22,607 | 37,178 | |||||
Accretion of discount on Public Notes (Note 6) | 141 | 132 | |||||
Amortization of deferred financing costs | 6,219 | 6,758 | |||||
Payment-in-kind interest | (3,980 | ) | (9,196 | ) | |||
Structuring fees | (5,531 | ) | (5,693 | ) | |||
Change in operating assets and liabilities: | |||||||
Payments for purchases of investments | (951,377 | ) | (801,798 | ) | |||
Proceeds from sale of investments and collection of investment principal | 1,353,163 | 759,326 | |||||
Decrease in due to Broker | (50,371 | ) | (957 | ) | |||
Decrease in due to Prospect Capital Management | (620 | ) | (1,937 | ) | |||
Increase in interest receivable, net | (4,873 | ) | (11,816 | ) | |||
Increase (decrease) in interest payable | 550 | (2,385 | ) | ||||
(Decrease) increase in accrued expenses | (765 | ) | 626 | ||||
Increase in due from Broker | (600 | ) | — | ||||
Increase (Decrease) in other liabilities | 52 | (510 | ) | ||||
Decrease (Increase) in other receivables | 161 | (6,317 | ) | ||||
Increase in due from Prospect Administration | (2,082 | ) | — | ||||
Increase in due from affiliate | (74 | ) | — | ||||
Decrease in prepaid expenses | 579 | 185 | |||||
Increase in due to Prospect Administration | 25 | 1,245 | |||||
Net Cash Provided by Operating Activities | 500,148 | 128,165 | |||||
Financing Activities | |||||||
Borrowings under Revolving Credit Facility (Note 4) | 341,000 | 210,000 | |||||
Principal payments under Revolving Credit Facility (Note 4) | (341,000 | ) | (210,000 | ) | |||
Issuances of Public Notes, net of original issue discount (Note 6) | — | 37,466 | |||||
Redemptions of Convertible Notes (Note 5) | (50,734 | ) | (167,500 | ) | |||
Issuances of Prospect Capital InterNotes® (Note 7) | 52,177 | 64,731 | |||||
Redemptions of Prospect Capital InterNotes®, net (Note 7) | (195,174 | ) | (11,440 | ) | |||
Financing costs paid and deferred | (1,437 | ) | (1,900 | ) | |||
Dividends paid | (148,587 | ) | (163,409 | ) | |||
Net Cash Used in Financing Activities | (343,755 | ) | (242,052 | ) | |||
Net Increase (Decrease) in Cash | 156,393 | (113,887 | ) | ||||
Cash at beginning of period | 318,083 | 317,798 | |||||
Cash at End of Period | $ | 474,476 | $ | 203,911 | |||
Supplemental Disclosures | |||||||
Cash paid for interest | $ | 73,472 | $ | 78,012 | |||
Non-Cash Financing Activities | |||||||
Value of shares issued through reinvestment of dividends | $ | 6,319 | $ | 15,530 | |||
Cost basis of investments written off as worthless | $ | 5,662 | $ | 1,720 | |||
See notes to consolidated financial statements.
7
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS
(in thousands, except share data)
December 31, 2017 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(47) | ||||||||||||
Arctic Energy Services, LLC(37) | Wyoming / Energy Equipment & Services | Class D Units (12.00%, 32,915 units)(16) | — | $ | 31,640 | $ | 24,158 | 0.7% | ||||
Class E Units (14.00%, 21,080 units)(16) | — | 20,230 | — | —% | ||||||||
Class A Units (14.00%, 700 units)(16) | — | 9,006 | — | —% | ||||||||
Class C Units (10 units)(16) | — | — | — | —% | ||||||||
60,876 | 24,158 | 0.7% | ||||||||||
CCPI Inc.(19) | Ohio / Electronic Equipment, Instruments & Components | Senior Secured Term Loan A (10.00%, due 12/31/2020)(3) | 2,909 | 2,909 | 2,909 | 0.1% | ||||||
Senior Secured Term Loan B (12.00% plus 7.00% PIK, due 12/31/2020)(3)(46) | 17,904 | 17,904 | 17,904 | 0.5% | ||||||||
Common Stock (14,857 shares) | — | 6,759 | 17,824 | 0.5% | ||||||||
27,572 | 38,637 | 1.1% | ||||||||||
CP Energy Services Inc.(20) | Oklahoma / Energy Equipment & Services | Senior Secured Term Loan (12.34% (LIBOR + 11.00% with 1.00% LIBOR floor), due 12/29/2022)(10)(11) | 35,048 | 35,048 | 35,048 | 1.0% | ||||||
Series B Convertible Preferred Stock (16.00%, 790 shares)(16) | — | 63,225 | 51,509 | 1.5% | ||||||||
Common Stock (2,924 shares)(16) | — | 15,227 | — | —% | ||||||||
113,500 | 86,557 | 2.5% | ||||||||||
Credit Central Loan Company, LLC(21) | South Carolina / Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2019)(14)(46) | 51,855 | 46,195 | 51,855 | 1.4% | ||||||
Class A Units (10,640,642 units)(14)(16) | — | 13,731 | 20,190 | 0.6% | ||||||||
Net Revenues Interest (25% of Net Revenues)(14) | — | — | 2,667 | 0.1% | ||||||||
59,926 | 74,712 | 2.1% | ||||||||||
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)(10)(13)(46) | 31,055 | 31,055 | 31,055 | 0.9% | ||||||
Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.00% PIK, due 12/7/2024)(10)(13)(46) | 16,044 | 16,044 | 16,044 | 0.5% | ||||||||
Membership Interest (100%)(16) | — | 22,738 | 29,478 | 0.9% | ||||||||
69,837 | 76,577 | 2.3% | ||||||||||
Edmentum Ultimate Holdings, LLC(22) | Minnesota / Diversified Consumer Services | Second Lien Revolving Credit Facility to Edmentum, Inc. – $7,834 Commitment (5.00%, due 6/9/2020)(15) | 5,092 | 5,092 | 5,092 | 0.2% | ||||||
Unsecured Senior PIK Note (8.50% PIK, due 6/9/2020)(46) | 7,208 | 7,208 | 7,208 | 0.2% | ||||||||
Unsecured Junior PIK Note (10.00% PIK, in non-accrual status effective 1/1/2017, due 6/9/2020) | 33,520 | 23,828 | 19,062 | 0.6% | ||||||||
Class A Units (370,964 units)(16) | — | 6,577 | — | —% | ||||||||
42,705 | 31,362 | 1.0% | ||||||||||
First Tower Finance Company LLC(23) | Mississippi / Consumer Finance | Subordinated Term Loan to First Tower, LLC (10.00% plus 7.00% PIK, due 6/24/2019)(14)(46) | 258,772 | 258,772 | 258,772 | 7.7% | ||||||
Class A Units (93,997,533 units)(14)(16) | — | 78,481 | 146,258 | 4.4% | ||||||||
337,253 | 405,030 | 12.1% | ||||||||||
Freedom Marine Solutions, LLC(24) | Louisiana / Energy Equipment & Services | Membership Interest (100%)(16) | — | 42,812 | 25,266 | 0.8% | ||||||
42,812 | 25,266 | 0.8% | ||||||||||
See notes to consolidated financial statements.
8
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2017 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(47) | ||||||||||||
MITY, Inc.(25) | Utah / Commercial Services & Supplies | Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 1/30/2020)(3)(10)(11) | $ | 26,250 | $ | 26,250 | $ | 26,250 | 0.8% | |||
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 1/30/2020)(3)(10)(11)(46) | 24,442 | 24,442 | 24,442 | 0.7% | ||||||||
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due on demand)(3)(14) | 5,782 | 7,200 | 5,782 | 0.2% | ||||||||
Common Stock (42,053 shares)(16) | — | 6,849 | 13,008 | 0.5% | ||||||||
64,741 | 69,482 | 2.2% | ||||||||||
National Property REIT Corp.(26) | Various / Equity Real Estate Investment Trusts (REITs) / Online Lending | Senior Secured Term Loan A (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 10.50% PIK, due 4/1/2019)(10)(11)(46) | 293,203 | 293,203 | 293,203 | 8.8% | ||||||
Senior Secured Term Loan E (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 5.00% PIK, due 4/1/2019)(10)(11)(46) | 113,240 | 113,240 | 113,240 | 3.4% | ||||||||
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)(10)(11)(14)(46) | 14,274 | 14,274 | 14,274 | 0.4% | ||||||||
Senior Secured Term Loan C to American Consumer Lending Limited (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 5.00% PIK, due 12/15/2020)(10)(11)(14)(46) | 132,578 | 132,578 | 132,578 | 4.0% | ||||||||
Common Stock (2,351,247 shares)(16) | — | 290,564 | 400,362 | 12.0% | ||||||||
Net Operating Income Interest (5% of Net Operating Income) | — | — | 94,718 | 2.8% | ||||||||
843,859 | 1,048,375 | 31.4% | ||||||||||
Nationwide Loan Company LLC(27) | Illinois / Consumer Finance | Senior Subordinated Term Loan to Nationwide Acceptance LLC (10.00% plus 10.00% PIK, due 6/18/2019)(14)(46) | 17,114 | 17,114 | 17,114 | 0.5% | ||||||
Class A Units (32,456,159 units)(14)(16) | — | 21,962 | 13,141 | 0.4% | ||||||||
39,076 | 30,255 | 0.9% | ||||||||||
NMMB, Inc.(28) | New York / Media | Senior Secured Note (14.00%, due 5/6/2021)(3) | 3,714 | 3,714 | 3,714 | 0.1% | ||||||
Senior Secured Note to Armed Forces Communications, Inc. (14.00%, due 5/6/2021)(3) | 6,900 | 6,900 | 6,900 | 0.2% | ||||||||
Series A Preferred Stock (7,200 shares)(3)(16) | — | 12,869 | 10,614 | 0.3% | ||||||||
23,483 | 21,228 | 0.6% | ||||||||||
R-V Industries, Inc. | Pennsylvania / Machinery | Senior Subordinated Note (10.69% (LIBOR + 9.00% with 1.00% LIBOR floor), due 3/31/2022)(3)(10)(11) | 28,622 | 28,622 | 28,622 | 0.9% | ||||||
Common Stock (745,107 shares)(16) | — | 6,866 | 2,786 | 0.1% | ||||||||
35,488 | 31,408 | 1.0% | ||||||||||
SB Forging Company II, Inc. (f/k/a Gulf Coast Machine & Supply Company)(29) | Texas / Energy Equipment & Services | Series A Convertible Preferred Stock (6.50%, 99,000 shares)(16) | — | — | 996 | —% | ||||||
Common Stock (100 shares)(16) | — | — | — | —% | ||||||||
— | 996 | —% | ||||||||||
See notes to consolidated financial statements.
9
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2017 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(47) | ||||||||||||
USES Corp.(30) | Texas / Commercial Services & Supplies | Senior Secured Term Loan A (9.00% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | $ | 35,326 | $ | 31,602 | $ | 6,655 | 0.2% | |||
Senior Secured Term Loan B (15.50% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | 44,281 | 35,568 | — | —% | ||||||||
Common Stock (268,962 shares)(16) | — | — | — | —% | ||||||||
67,170 | 6,655 | 0.2% | ||||||||||
Valley Electric Company, Inc.(31) | 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 12/31/2024)(3)(10)(11)(46) | 10,430 | 10,430 | 10,430 | 0.3% | ||||||
Senior Secured Note (10.00% plus 8.50% PIK, due 6/23/2024)(46) | 26,724 | 26,724 | 26,724 | 0.8% | ||||||||
Common Stock (50,000 shares)(16) | — | 26,204 | 3,777 | 0.1% | ||||||||
63,358 | 40,931 | 1.2% | ||||||||||
Wolf Energy, LLC(32) | Kansas / Energy Equipment & Services | Membership Interest (100%)(16) | — | — | — | —% | ||||||
Membership Interest in Wolf Energy Services Company, LLC (100%)(16) | — | 3,704 | 283 | —% | ||||||||
Net Profits Interest (8% of Equity Distributions)(4)(16) | — | — | 10 | —% | ||||||||
3,704 | 293 | —% | ||||||||||
Total Control Investments (Level 3) | $ | 1,895,360 | $ | 2,011,922 | 60.1% | |||||||
Affiliate Investments (5.00% to 24.99% voting control)(48) | ||||||||||||
Nixon, Inc.(39) | California / Textiles, Apparel & Luxury Goods | Senior Secured Term Loan (11.50% PIK, in non-accrual status effective 7/1/2016, due 11/12/2022)(8) | $ | 17,472 | $ | 14,197 | $ | — | —% | |||
Common Stock (857 units)(16) | — | — | — | —% | ||||||||
14,197 | — | —% | ||||||||||
Targus Cayman HoldCo Limited(33) | California / Textiles, Apparel & Luxury Goods | Common Stock (7,383,395 shares)(16) | — | 9,878 | 19,272 | 0.6% | ||||||
9,878 | 19,272 | 0.6% | ||||||||||
Total Affiliate Investments (Level 3) | $ | 24,075 | $ | 19,272 | 0.6% | |||||||
See notes to consolidated financial statements.
10
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2017 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Ability Network Inc. | Minnesota / Health Care Technology | Second Lien Term Loan (9.21% (LIBOR + 7.75% with 1.00% LIBOR floor), due 12/13/2025)(8)(10)(11) | $ | 15,000 | $ | 14,926 | $ | 14,926 | 0.4% | |||
14,926 | 14,926 | 0.4% | ||||||||||
ACE Cash Express, Inc. | Texas / Consumer Finance | Senior Secured Note (12.00%, due 12/15/2022)(8)(14) | 20,000 | 19,702 | 20,000 | 0.6% | ||||||
19,702 | 20,000 | 0.6% | ||||||||||
AgaMatrix, Inc. | New Hampshire / Healthcare Equipment and Supplies | Senior Secured Term Loan (10.44% (LIBOR + 8.75% with 1.25% LIBOR floor), due 9/29/2022)(3)(10)(11) | 31,625 | 31,625 | 31,625 | 0.9% | ||||||
31,625 | 31,625 | 0.9% | ||||||||||
Apidos CLO IX | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 7/15/2023)(5)(14)(17) | 23,525 | 66 | 66 | —% | ||||||
66 | 66 | —% | ||||||||||
Apidos CLO XI | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 8.89%, due 10/17/28)(5)(14) | 40,500 | 31,379 | 25,091 | 0.7% | ||||||
31,379 | 25,091 | 0.7% | ||||||||||
Apidos CLO XII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 4/15/2025)(5)(14)(17) | 44,063 | 29,043 | 17,865 | 0.5% | ||||||
29,043 | 17,865 | 0.5% | ||||||||||
Apidos CLO XV | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 1.39%, due 10/20/2025)(5)(14) | 36,515 | 28,041 | 20,984 | 0.6% | ||||||
28,041 | 20,984 | 0.6% | ||||||||||
Apidos CLO XXII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.57%, due 10/20/2027)(5)(6)(14) | 31,350 | 27,293 | 24,907 | 0.7% | ||||||
27,293 | 24,907 | 0.7% | ||||||||||
Ark-La-Tex Wireline Services, LLC | Louisiana / Energy Equipment & Services | Senior Secured Term Loan B (13.19% (LIBOR + 11.50% with 1.00% LIBOR floor), in non-accrual status effective 4/1/2016, due 4/8/2019)(10)(13) | 25,595 | 1,145 | 743 | —% | ||||||
1,145 | 743 | —% | ||||||||||
Armor Holding II LLC | New York / Commercial Services & Supplies | Second Lien Term Loan (10.70% (LIBOR + 9.00% with 1.25% LIBOR floor), due 12/26/2020)(3)(8)(10)(11) | 7,000 | 6,938 | 7,000 | 0.2% | ||||||
6,938 | 7,000 | 0.2% | ||||||||||
Atlantis Health Care Group (Puerto Rico), Inc. | Puerto Rico / Health Care Providers & Services | Revolving Line of Credit – $7,000 Commitment (9.69% (LIBOR + 8.00% with 1.50% LIBOR floor), due 8/21/2018)(10)(11)(15) | 7,000 | 7,000 | 6,779 | 0.2% | ||||||
Senior Term Loan (9.69% (LIBOR + 8.00% with 1.50% LIBOR floor), due 2/21/2020)(10)(11) | 79,153 | 79,153 | 76,649 | 2.3% | ||||||||
86,153 | 83,428 | 2.5% | ||||||||||
Autodata, Inc./ Autodata Solutions, Inc. | Canada / Software | Second Lien Term Loan (8.82% (LIBOR + 7.25% with 1.00% LIBOR floor), due 12/14/2025)(8)(10)(11) | 6,000 | 5,970 | 5,970 | 0.2% | ||||||
5,970 | 5,970 | —% | ||||||||||
Babson CLO Ltd. 2014-III | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.87%, due 1/15/2026)(5)(6)(14) | 52,250 | 40,909 | 36,185 | 1.1% | ||||||
40,909 | 36,185 | 1.1% | ||||||||||
Broder Bros., Co. | Pennsylvania / Textiles, Apparel & Luxury Goods | Senior Secured Note (9.69% (LIBOR + 8.00% with 1.25% LIBOR floor), due 12/02/2022)(10)(11) | 459,425 | 459,425 | 459,425 | 13.7% | ||||||
459,425 | 459,425 | 13.7% | ||||||||||
See notes to consolidated financial statements.
11
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2017 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Brookside Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 4/17/2025)(5)(14)(17) | $ | 26,000 | $ | 15,673 | $ | 12,635 | 0.4% | |||
15,673 | 12,635 | 0.4% | ||||||||||
California Street CLO IX Ltd. (f/k/a Symphony CLO IX Ltd.) | Cayman Islands / Structured Finance | Preference Shares (Residual Interest, current yield 14.34%, due 10/16/2028)(5)(14) | 58,915 | 41,046 | 36,239 | 1.1% | ||||||
41,046 | 36,239 | 1.1% | ||||||||||
Capstone Logistics Acquisition, Inc. | Georgia / Commercial Services & Supplies | Second Lien Term Loan (9.82% (LIBOR + 8.25% with 1.00% LIBOR floor), due 10/7/2022)(3)(8)(10)(13) | 101,517 | 101,113 | 97,457 | 2.9% | ||||||
101,113 | 97,457 | 2.9% | ||||||||||
Carlyle Global Market Strategies CLO 2014-4, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 20.85%, due 10/15/2026)(5)(6)(14) | 25,534 | 19,701 | 19,766 | 0.6% | ||||||
19,701 | 19,766 | 0.6% | ||||||||||
Carlyle Global Market Strategies CLO 2016-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 16.32%, due 10/20/2029)(5)(6)(14) | 32,200 | 31,624 | 28,476 | 0.9% | ||||||
31,624 | 28,476 | 0.9% | ||||||||||
Cent CLO 17 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 9.20%, due 1/30/2025)(5)(14) | 24,870 | 17,813 | 17,264 | 0.5% | ||||||
17,813 | 17,264 | 0.5% | ||||||||||
Cent CLO 20 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 16.79%, due 1/25/2026)(5)(14) | 40,275 | 31,793 | 31,008 | 0.9% | ||||||
31,793 | 31,008 | 0.9% | ||||||||||
Cent CLO 21 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.21%, due 7/27/2026)(5)(6)(14) | 48,528 | 36,174 | 34,667 | 1.0% | ||||||
36,174 | 34,667 | 1.0% | ||||||||||
Centerfield Media Holding Company(35) | California / Internet Software and Services | Senior Secured Term Loan A (8.34% (LIBOR + 7.00% with 1.00% LIBOR floor), due 1/17/2022)(3)(8)(10)(11) | 66,640 | 66,640 | 66,640 | 2.0% | ||||||
Senior Secured Term Loan B (13.84% (LIBOR + 12.50% with 1.00% LIBOR floor), due 1/17/2022)(8)(10)(11) | 68,000 | 68,000 | 68,000 | 2.0% | ||||||||
134,640 | 134,640 | 4.0% | ||||||||||
CIFC Funding 2013-III, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 7.16%, due 10/24/2025)(5)(14) | 44,100 | 29,970 | 26,242 | 0.8% | ||||||
29,970 | 26,242 | 0.8% | ||||||||||
CIFC Funding 2013-IV, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 9.67%, due 11/27/2024)(5)(14) | 45,500 | 31,970 | 29,428 | 0.9% | ||||||
31,970 | 29,428 | 0.9% | ||||||||||
CIFC Funding 2014-IV Investor, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 7.43%, due 10/17/2026)(5)(6)(14) | 41,500 | 29,064 | 24,456 | 0.7% | ||||||
29,064 | 24,456 | 0.7% | ||||||||||
CIFC Funding 2016-I, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 13.43%, due 10/21/2028)(5)(6)(14) | 34,000 | 31,172 | 27,636 | 0.8% | ||||||
31,172 | 27,636 | 0.8% | ||||||||||
Cinedigm DC Holdings, LLC | New York / Media | Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021)(10)(11)(46) | 40,210 | 40,160 | 40,210 | 1.2% | ||||||
40,160 | 40,210 | 1.2% | ||||||||||
See notes to consolidated financial statements.
12
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2017 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Coverall North America, Inc. | Florida / Commercial Services & Supplies | Senior Secured Term Loan A (7.34% (LIBOR + 6.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(10)(11) | $ | 21,720 | $ | 21,720 | $ | 21,720 | 0.7% | |||
Senior Secured Term Loan B (12.34% (LIBOR + 11.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(10)(11) | 24,875 | 24,875 | 24,875 | 0.7% | ||||||||
46,595 | 46,595 | 1.4% | ||||||||||
CURO Financial Technologies Corp. | Canada / Consumer Finance | Senior Secured Notes (12.00%, due 3/1/2022)(8)(14) | 12,500 | 12,433 | 12,500 | 0.4% | ||||||
12,433 | 12,500 | 0.4% | ||||||||||
Dunn Paper, Inc. | Georgia / Paper & Forest Products | Second Lien Term Loan (10.32% (LIBOR + 8.75% with 1.00% LIBOR floor), due 8/26/2023)(8)(10)(13) | 11,500 | 11,312 | 11,500 | 0.3% | ||||||
11,312 | 11,500 | 0.3% | ||||||||||
Easy Gardener Products, Inc. | Texas / Household Durables | Senior Secured Term Loan (11.34% (LIBOR + 10.00% with .25% LIBOR floor), due 09/30/2020)(3)(10)(11) | 17,106 | 17,106 | 16,643 | 0.5% | ||||||
17,106 | 16,643 | 0.5% | ||||||||||
Engine Group, Inc.(7) | California / Media | Senior Secured Term Loan (6.44% (LIBOR + 4.75% with 1.00% LIBOR floor), due 9/15/2022)(8)(9)(10)(11) | 4,938 | 4,938 | 4,938 | 0.1% | ||||||
Second Lien Term Loan (10.44% (LIBOR + 8.75% with 1.00% LIBOR floor), due 9/15/2023)(3)(8)(10)(11) | 35,000 | 35,000 | 35,000 | 0.1% | ||||||||
39,938 | 39,938 | 1.1% | ||||||||||
EXC Holdings III Corp | Massachusetts / Technology Hardware, Storage & Peripherals | Second Lien Term Loan (9.16% (LIBOR + 7.50% with 1.00% LIBOR floor), due 12/01/2025)(8)(10)(11) | 12,500 | 12,376 | 12,376 | 0.4% | ||||||
12,376 | 12,376 | —% | ||||||||||
Fleetwash, Inc. | New Jersey / Commercial Services & Supplies | Senior Secured Term Loan B (10.34% (LIBOR + 9.00% with 1.00% LIBOR floor), due 4/30/2022)(3)(10)(11) | 21,544 | 21,544 | 21,544 | 0.6% | ||||||
Delayed Draw Term Loan – $15,000 Commitment (9.84% (LIBOR + 8.50% with 1.00% LIBOR floor) expires 4/30/2022)(10)(11)(15) | — | — | — | —% | ||||||||
21,544 | 21,544 | 0.6% | ||||||||||
Galaxy XV CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 11.89%, due 10/15/2030)(5)(14) | 50,525 | 33,831 | 30,827 | 0.9% | ||||||
33,831 | 30,827 | 0.9% | ||||||||||
Galaxy XVI CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 6.26%, due 11/16/2025)(5)(14) | 24,575 | 17,077 | 14,609 | 0.4% | ||||||
17,077 | 14,609 | 0.4% | ||||||||||
Galaxy XVII CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 6.66%, due 7/15/2026)(5)(6)(14) | 39,905 | 28,497 | 24,072 | 0.7% | ||||||
28,497 | 24,072 | 0.7% | ||||||||||
Halcyon Loan Advisors Funding 2012-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 8/15/2023)(5)(14)(17) | 23,188 | 3,987 | 5,510 | 0.2% | ||||||
3,987 | 5,510 | 0.2% | ||||||||||
Halcyon Loan Advisors Funding 2013-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 2.23%, due 4/15/2025)(5)(14) | 40,400 | 24,295 | 19,914 | 0.6% | ||||||
24,295 | 19,914 | 0.6% | ||||||||||
Halcyon Loan Advisors Funding 2014-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 5.88%, due 4/18/2026)(5)(14) | 24,500 | 15,129 | 13,325 | 0.4% | ||||||
15,129 | 13,325 | 0.4% | ||||||||||
See notes to consolidated financial statements.
13
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2017 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44)(45) | Principal Value | Amortized 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 2014-2 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 11.61%, due 4/28/2025)(5)(6)(14) | $ | 41,164 | $ | 26,102 | $ | 23,051 | 0.7% | |||
26,102 | 23,051 | 0.7% | ||||||||||
Halcyon Loan Advisors Funding 2015-3 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 19.67%, due 10/18/2027)(5)(6)(14) | 39,598 | 34,191 | 33,690 | 1.0% | ||||||
34,191 | 33,690 | 1.0% | ||||||||||
Harbortouch Payments, LLC | Pennsylvania / Commercial Services & Supplies | Escrow Receivable | — | — | 856 | —% | ||||||
— | 856 | —% | ||||||||||
HarbourView CLO VII, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 18.00%, due 11/18/2026)(5)(6)(14) | 19,025 | 15,187 | 13,988 | 0.4% | ||||||
15,187 | 13,988 | 0.4% | ||||||||||
Harley Marine Services, Inc. | Washington / Marine | Second Lien Term Loan (10.63% (LIBOR + 9.25% with 1.25% LIBOR floor), due 12/20/2019)(3)(8)(10)(11) | 9,000 | 8,935 | 8,935 | 0.3% | ||||||
8,935 | 8,935 | 0.3% | ||||||||||
Ingenio, LLC | California / Internet Software and Services | Senior Secured Term Loan (8.88% (LIBOR + 7.50% with 1.25% LIBOR floor), due 9/26/2022)(3)(8)(10)(11) | 10,000 | 10,000 | 10,000 | 0.3% | ||||||
10,000 | 10,000 | 0.3% | ||||||||||
Inpatient Care Management Company, LLC | Florida / Health Care Providers & Services | Senior Secured Term Loan (9.34% (LIBOR + 8.00% with 1.00% LIBOR floor), due 6/8/2021)(3)(10)(11) | 24,927 | 24,927 | 24,927 | 0.7% | ||||||
24,927 | 24,927 | 0.7% | ||||||||||
InterDent, Inc. | California / Health Care Providers & Services | Senior Secured Term Loan A (7.07% (LIBOR + 5.50% with 0.75% LIBOR floor), due 12/31/2017)(10)(13) | 78,215 | 78,215 | 78,215 | 2.3% | ||||||
Senior Secured Term Loan B (12.07% (LIBOR + 10.50% with 0.75% LIBOR floor), due 12/31/2017)(3)(10)(13) | 131,125 | 131,125 | 131,125 | 3.9% | ||||||||
209,340 | 209,340 | 6.2% | ||||||||||
JD Power and Associates | California / Capital Markets | Second Lien Term Loan (10.19% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/7/2024)(3)(8)(10)(11) | 20,000 | 19,785 | 20,000 | 0.6% | ||||||
19,785 | 20,000 | 0.6% | ||||||||||
Jefferson Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 7.72%, due 7/20/2027)(5)(6)(14) | 19,500 | 16,244 | 12,518 | 0.4% | ||||||
16,244 | 12,518 | 0.4% | ||||||||||
K&N Parent, Inc. | California / Auto Components | Second Lien Term Loan (10.32% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/21/2024)(3)(8)(10)(13) | 13,000 | 12,778 | 12,834 | 0.4% | ||||||
12,778 | 12,834 | 0.4% | ||||||||||
Keystone Acquisition Corp.(36) | Pennsylvania / Health Care Providers & Services | Second Lien Term Loan (10.94% (LIBOR + 9.25% with 1.00% LIBOR floor), due 5/1/2025)(3)(8)(10)(11) | 50,000 | 50,000 | 50,000 | 1.5% | ||||||
50,000 | 50,000 | 1.5% | ||||||||||
LaserShip, Inc. | Virginia / Air Freight & Logistics | Senior Secured Term Loan A (9.07% (LIBOR + 7.50% with 1.25% LIBOR floor), due 11/22/2022)(3)(10)(13) | 22,990 | 22,990 | 22,990 | 0.7% | ||||||
Senior Secured Term Loan B (9.07% (LIBOR + 7.50% with 1.25% LIBOR floor), due 11/22/2022)(3)(10)(13) | 14,124 | 14,124 | 14,124 | 0.4% | ||||||||
37,114 | 37,114 | 1.1% | ||||||||||
See notes to consolidated financial statements.
14
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2017 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
LCM XIV Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 5.86%, due 7/15/2025)(5)(14) | $ | 30,500 | $ | 20,157 | $ | 17,876 | 0.5% | |||
20,157 | 17,876 | 0.5% | ||||||||||
Madison Park Funding IX, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 16.67%, due 8/15/2022)(5)(14) | 43,110 | 2,285 | 2,329 | 0.1% | ||||||
2,285 | 2,329 | 0.1% | ||||||||||
Maverick Healthcare Equity, LLC | Arizona / Health Care Providers & Services | Preferred Units (10.00%,1,250,000 units)(16) | 1,252 | 555 | —% | |||||||
Class A Common Units (1,250,000 units)(16) | — | — | —% | |||||||||
1,252 | 555 | —% | ||||||||||
Memorial MRI & Diagnostic, LLC | Texas / Health Care Providers & Services | Senior Secured Term Loan (10.19% (LIBOR + 8.50% with 1.00% LIBOR floor), due 3/16/2022)(10)(11) | 37,430 | 37,430 | 37,430 | 1.1% | ||||||
37,430 | 37,430 | 1.1% | ||||||||||
Mountain View CLO 2013-I Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 16.23%, due 10/12/2030)(5)(14) | 43,650 | 27,017 | 23,861 | 0.8% | ||||||
27,017 | 23,861 | 0.8% | ||||||||||
Mountain View CLO IX Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.45%, due 7/15/2027)(5)(6)(14) | 47,830 | 40,544 | 38,507 | 1.2% | ||||||
40,544 | 38,507 | 1.2% | ||||||||||
National Home Healthcare Corp. | Michigan / Health Care Providers & Services | Second Lien Term Loan (10.43% (LIBOR + 9.00% with 1.00% LIBOR floor), due 12/8/2022)(3)(8)(10)(13) | 15,407 | 15,219 | 15,407 | 0.5% | ||||||
15,219 | 15,407 | 0.5% | ||||||||||
Octagon Investment Partners XV, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 15.04%, due 7/19/2030)(5)(14) | 42,064 | 31,150 | 26,517 | 0.8% | ||||||
31,150 | 26,517 | 0.8% | ||||||||||
Octagon Investment Partners XVIII, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 8.98%, due 12/16/2024)(5)(6)(14) | 28,200 | 17,439 | 15,398 | 0.5% | ||||||
17,439 | 15,398 | 0.5% | ||||||||||
Pacific World Corporation | California / Personal Products | Revolving Line of Credit – $21,000 Commitment (8.74% (LIBOR + 7.25% with 1.00% LIBOR floor), due 9/26/2020)(10)(13)(15) | 19,225 | 19,225 | 19,225 | 0.6% | ||||||
Senior Secured Term Loan A (6.74% (LIBOR + 5.25% with 1.00% LIBOR floor), due 9/26/2020)(3)(10)(13) | 96,750 | 96,750 | 94,957 | 2.9% | ||||||||
Senior Secured Term Loan B (10.74% (LIBOR + 9.25% with 1.00% LIBOR floor), due 9/26/2020)(3)(10)(13) | 96,750 | 96,750 | 68,954 | 2.1% | ||||||||
Common Stock (6,778,414 units)(16) | — | — | — | 0.1% | ||||||||
212,725 | 183,136 | 5.6% | ||||||||||
Pelican Products, Inc. | California / Chemicals | Second Lien Term Loan (9.94% (LIBOR + 8.25% with 1.00% LIBOR floor), due 4/9/2021)(3)(8)(10)(11) | 17,500 | 17,491 | 17,077 | 0.5% | ||||||
17,491 | 17,077 | 0.5% | ||||||||||
PeopleConnect Intermediate, LLC (f/k/a Intelius, Inc.) | Washington / Internet Software & Services | Revolving Line of Credit – $1,000 Commitment (11.10% (LIBOR + 9.50% with 1.00% LIBOR floor), due 8/11/2018)(10)(11)(15) | 500 | 500 | 500 | —% | ||||||
Senior Secured Term Loan A (7.84% (LIBOR + 6.50% with 1.00% LIBOR floor), due 7/1/2021)(3)(10)(11) | 19,248 | 19,248 | 19,248 | 0.7% | ||||||||
Senior Secured Term Loan B (13.84% (LIBOR + 12.50% with 1.00% LIBOR floor), due 7/1/2021)(3)(10)(11) | 20,373 | 20,373 | 20,373 | 0.7% | ||||||||
40,121 | 40,121 | 1.4% | ||||||||||
See notes to consolidated financial statements.
15
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)
December 31, 2017 (Unaudited) | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
PGX Holdings, Inc.(40) | Utah / Diversified Consumer Services | Second Lien Term Loan (10.57% (LIBOR + 9.00% with 1.00% LIBOR floor), due 9/29/2021)(10)(13) | $ | 134,668 | $ | 134,668 | $ | 134,668 | 4.0% | |||
134,668 | 134,668 | 4.0% | ||||||||||
PharMerica Corporation | Kentucky / Pharmaceuticals | Second Lien Term Loan (9.25% (LIBOR + 7.75% with 1.00% LIBOR floor), due 12/07/2024)(8)(10)(13) | 12,000 | 11,880 | 12,000 | 0.4% | ||||||
11,880 | 12,000 | 0.4% | ||||||||||
Photonis Technologies SAS | France / Electronic Equipment, Instruments & Components | First Lien Term Loan (9.19% (LIBOR + 7.50% with 1.00% LIBOR floor), due 9/18/2019)(8)(10)(11)(14) | 12,872 | 12,325 | 11,283 | 0.3% | ||||||
12,325 | 11,283 | 0.3% | ||||||||||
PlayPower, Inc. | North Carolina / Leisure Products | Second Lien Term Loan (10.44% (LIBOR + 8.75% with 1.00% LIBOR floor), due 6/23/2022)(3)(8)(10)(11) | 11,000 | |||||||||