Attached files

file filename
EX-32.1 - EXHIBIT 32.1 - PhenixFIN Corpexhibit321033118.htm
EX-31.2 - EXHIBIT 31.2 - PhenixFIN Corpexhibit312033118.htm
EX-31.1 - EXHIBIT 31.1 - PhenixFIN Corpexhibit311033118.htm
EX-21.1 - EXHIBIT 21.1 - PhenixFIN Corpexhibit211033118.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, 2018
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, 2018.




MEDLEY CAPITAL CORPORATION

TABLE OF CONTENTS


Part I.
Financial Information
 
 
 
 
Item I.
Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Part II.
Other Information
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Item 5.
 
 
 
Item 6.
 
 
 
SIGNATURES
 





Medley Capital Corporation

Consolidated Statements of Assets and Liabilities
 
March 31, 2018
 
September 30, 2017
 
(unaudited)
 
 
ASSETS
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (amortized cost of $558,125,717 and $625,108,198, respectively)
$
480,365,391

 
$
575,495,698

Affiliated investments (amortized cost of $95,394,104 and $91,026,729, respectively)
93,793,138

 
90,071,365

Controlled investments (amortized cost of $217,609,579 and $197,918,352, respectively)
172,656,346

 
171,423,836

Total investments at fair value
746,814,875


836,990,899

Cash and cash equivalents
65,429,622

 
108,571,958

Interest receivable
9,426,764

 
9,371,048

Other assets
3,199,908

 
3,321,822

Fees receivable
691,727

 
765,756

Deferred offering costs
351,609

 
307,015

Receivable for dispositions and investments sold
179,174

 
231,895

Total assets
$
826,093,679


$
959,560,393

 
 
 
 
LIABILITIES
 

 
 

Revolving credit facility payable (net of debt issuance costs of $1,288,871 and $1,777,181, respectively)
$
10,711,129

 
$
66,222,819

Term loan payable (net of debt issuance costs of $0 and $1,045,895, respectively)

 
100,954,105

Notes payable (net of debt issuance costs of $9,377,661 and $4,122,533, respectively)
275,771,006

 
172,751,776

SBA debentures payable (net of debt issuance costs of $2,563,339 and $2,845,694, respectively)
147,436,661

 
147,154,306

Management and incentive fees payable (see Note 6)
3,395,882

 
4,312,004

Interest and fees payable
2,724,646

 
3,759,891

Accounts payable and accrued expenses
1,804,917

 
1,863,546

Administrator expenses payable
965,589

 
859,794

Deferred tax liability
631,434

 
911,936

Deferred revenue
250,582

 
259,552

Due to affiliate
126,873

 
81,347

Total liabilities
$
443,818,719


$
499,131,076

 
 
 
 
Guarantees and 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
705,046,098

 
705,046,098

Accumulated undistributed net investment income
2,855,416

 
9,528,367

Accumulated net realized gain/(loss) from investments
(201,172,653
)
 
(176,662,889
)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes
(124,508,375
)
 
(77,536,733
)
Total net assets
382,274,960

 
460,429,317

Total liabilities and net assets
$
826,093,679


$
959,560,393

 
 
 
 
NET ASSET VALUE PER SHARE
$
7.02

 
$
8.45

 
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
 
2018
 
2017
 
2018
 
2017
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
INVESTMENT INCOME:
 
 
 
 
 

 
 

Interest from investments
 
 
 
 
 

 
 

Non-controlled/non-affiliated investments:
 

 
 

 
 

 
 

Cash
$
10,966,668

 
$
16,890,427

 
$
24,057,020

 
$
35,034,733

Payment-in-kind
872,495

 
2,824,976

 
2,513,628

 
5,685,943

Affiliated investments:
 
 
 
 
 
 
 
Cash
490,765

 
487,874

 
1,068,074

 
1,030,696

Payment-in-kind
769,572

 
100,146

 
1,619,067

 
201,229

Controlled investments:
 
 
 
 
 
 
 
Cash
426,537

 
353,528

 
856,299

 
696,686

Payment-in-kind
815,135

 
1,071,342

 
1,533,653

 
3,042,902

Total interest income
14,341,172

 
21,728,293

 
31,647,741


45,692,189

Dividend income, net of provisional taxes ($0 and $0, respectively)
2,172,610

 
1,050,000

 
3,616,360

 
1,694,953

Interest from cash and cash equivalents
25,794

 
40,367

 
57,563

 
63,779

Fee income (see Note 9)
495,508

 
1,538,328

 
2,344,268

 
2,962,132

Total investment income
17,035,084

 
24,356,988

 
37,665,932


50,413,053

 
 
 
 
 
 
 
 
EXPENSES:
 

 
 

 
 

 
 

Base management fees (see Note 6)
3,775,882

 
4,496,286

 
7,843,723

 
9,010,901

Incentive fees (see Note 6)

 

 

 
895,675

Interest and financing expenses
7,470,017

 
9,143,488

 
14,229,216

 
16,917,459

Administrator expenses (see Note 6)
956,589

 
997,074

 
1,823,920

 
1,913,140

General and administrative
671,784

 
783,044

 
1,429,039

 
1,480,049

Professional Fees
555,865

 
662,693

 
1,141,532

 
1,313,804

Directors fees
251,315

 
150,009

 
398,495

 
319,793

Insurance
130,074

 
99,455

 
263,288

 
198,910

Expenses before management and incentive fee waivers
13,811,526

 
16,332,049

 
27,129,213


32,049,731

Management fee waiver (see Note 6)
(380,000
)
 
(17,327
)
 
(380,000
)
 
(37,272
)
Incentive fee waiver (see Note 6)

 

 

 
(43,663
)
Total expenses net of management and incentive fee waivers
13,431,526

 
16,314,722

 
26,749,213


31,968,796

Net investment income before excise taxes
3,603,558

 
8,042,266

 
10,916,719

 
18,444,257

Excise tax expense
(23,922
)
 

 
(157,922
)
 
(267,183
)
NET INVESTMENT INCOME
3,579,636

 
8,042,266

 
10,758,797

 
18,177,074

 
 
 
 
 
 
 
 
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
 

 
 

 
 

 
 

Net realized gain/(loss) from investments
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
(23,330,652
)
 
9,948

 
(23,352,128
)
 
(6,288,483
)
Affiliated investments

 

 

 

Controlled investments

 

 

 

Net realized gain/(loss) from investments
(23,330,652
)
 
9,948

 
(23,352,128
)
 
(6,288,483
)
Net unrealized appreciation/(depreciation) on investments
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
6,322,632

 
(12,644,831
)
 
(28,147,825
)
 
(11,019,537
)
Affiliated investments
(4,928,871
)
 
1,983,992

 
(645,603
)
 
1,983,992

Controlled investments
(9,454,224
)
 
(9,183,065
)
 
(18,458,717
)
 
(8,319,163
)
Net unrealized appreciation/(depreciation) on investments
(8,060,463
)
 
(19,843,904
)
 
(47,252,145
)
 
(17,354,708
)
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments
190,494

 

 
280,503

 

Loss on extinguishment of debt
(1,157,636
)
 
(456,364
)
 
(1,157,636
)
 
(456,364
)
Net gain/(loss) on investments
(32,358,257
)
 
(20,290,320
)
 
(71,481,406
)
 
(24,099,555
)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$
(28,778,621
)
 
$
(12,248,054
)
 
$
(60,722,609
)
 
$
(5,922,481
)
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE
$
(0.53
)
 
$
(0.22
)
 
$
(1.11
)
 
$
(0.11
)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE
$
0.07

 
$
0.15

 
$
0.20

 
$
0.33

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

 
54,474,211

 
54,474,211

 
54,474,211

DIVIDENDS DECLARED PER COMMON SHARE
$
0.16

 
$
0.22

 
$
0.32

 
$
0.44

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
 
2018
 
2017
 
(unaudited)
 
(unaudited)
OPERATIONS:
 

 
 

Net investment income
$
10,758,797

 
$
18,177,074

Net realized gain/(loss) from investments
(23,352,128
)
 
(6,288,483
)
Net unrealized appreciation/(depreciation) on investments
(47,252,145
)
 
(17,354,708
)
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments
280,503

 

Loss on extinguishment of debt
(1,157,636
)
 
(456,364
)
Net increase/(decrease) in net assets from operations
(60,722,609
)
 
(5,922,481
)
SHAREHOLDER DISTRIBUTIONS:
 

 
 

Distributions from net investment income
(17,431,748
)
 
(23,968,655
)
Net decrease in net assets from shareholder distributions
(17,431,748
)
 
(23,968,655
)
COMMON SHARE TRANSACTIONS:
 
 
 
Offering costs

 
(12,778
)
Net increase/(decrease) in net assets from common share transactions

 
(12,778
)
Total increase/(decrease) in net assets
(78,154,357
)
 
(29,903,914
)
Net assets at beginning of period
460,429,317

 
516,919,142

Net assets at end of period including accumulated undistributed net investment income of $2,855,416 and $5,020,181, respectively
$
382,274,960

 
$
487,015,228

 
 
 
 
Net asset value per common share
$
7.02

 
$
8.94

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

 
54,474,211

 
See accompanying notes to consolidated financial statements.



F-3



Medley Capital Corporation

Consolidated Statements of Cash Flows
 
For the six months ended March 31
 
2018
 
2017
 
(unaudited)
 
(unaudited)
Cash flows from operating activities
 

 
 

NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
$
(60,722,609
)
 
$
(5,922,481
)
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
(4,493,565
)
 
(9,332,277
)
Net amortization of premium/(discount) on investments
(481,129
)
 
(680,657
)
Amortization of debt issuance costs
1,874,923

 
3,157,516

Net realized (gain)/loss from investments
23,352,128

 
6,288,483

Net deferred income taxes
(280,502
)
 

Net unrealized (appreciation)/depreciation on investments
47,252,145

 
17,354,708

Proceeds from sale and settlements of investments
127,510,828

 
75,123,093

Purchases, originations and participations
(102,964,383
)
 
(100,710,131
)
Loss on extinguishment of debt
1,157,636

 
456,364

(Increase)/decrease in operating assets:
 
 
 
Interest receivable
(55,716
)
 
(1,067,982
)
Other assets
121,914

 
(25,008
)
Fees receivable
74,029

 
521,196

Receivable for dispositions and investments sold
52,721

 
9,308

Increase/(decrease) in operating liabilities:
 
 
 
Management and incentive fees payable, net
(916,122
)
 
(79,660
)
Interest and fees payable
(1,035,245
)
 
129,166

Accounts payable and accrued expenses
(58,629
)
 
(390,201
)
Administrator expenses payable
105,795

 
6,838

Deferred revenue
(8,970
)
 
(87,379
)
Due to affiliate
45,526

 
59,456

NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES
30,530,775

 
(15,189,648
)
 
 
 
 
Cash flows from financing activities
 

 
 

Borrowings on debt
139,275,690

 
107,363,443

Paydowns on debt
(189,000,000
)
 
(88,000,000
)
Debt issuance costs paid
(6,472,459
)
 
(1,122,609
)
Payments of cash dividends
(17,431,748
)
 
(23,968,655
)
Offering costs paid
(44,594
)
 
(44,811
)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES
(73,673,111
)
 
(5,772,632
)
 
 
 
 
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
(43,142,336
)
 
(20,962,280
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
108,571,958

 
104,485,263

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
65,429,622

 
$
83,522,983

 
 
 
 
Supplemental Information:
 

 
 

Interest paid during the period
$
13,352,037

 
$
13,592,326

Supplemental non-cash information:
 
 
 
Payment-in-kind interest income
$
5,666,348

 
$
8,930,074

Net amortization of premium/(discount) on investments
$
481,129

 
$
680,657

Amortization of debt issuance costs
$
(1,874,923
)
 
$
(3,157,516
)
Non-cash purchase of investments
$
1,392,699

 
$
58,615,663

Non-cash sale of investments
$
1,392,699

 
$
58,615,663

 
See accompanying notes to consolidated financial statements.

F-4



Medley Capital Corporation
  
Consolidated Schedule of Investments

March 31, 2018
(unaudited)
Company(1)
 
Industry
 
Type of Investment(6)
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of
Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Controlled/Non-Affiliated Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3SI Security Systems, Inc.
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)(14)
 
6/16/2023
 
$
17,412,500

 
$
17,412,500

 
$
17,563,989

 
4.6
%
 
 
 
 
 
 
 
 
17,412,500

 
17,412,500

 
17,563,989

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accupac, Inc.(7)
 
Containers, Packaging & Glass
 
Senior Secured First Lien Term Loan (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)(13)(18)
 
9/14/2023
 
9,838,231

 
9,838,231

 
9,838,231

 
2.6
%
 
 
 
 
 
 
 
 
9,838,231

 
9,838,231

 
9,838,231

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alpine SG, LLC(7)
 
High Tech Industries
 
Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(14)
 
11/16/2022
 
13,466,250

 
13,466,250

 
13,466,250

 
3.5
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(14)
 
11/16/2022
 
6,643,350

 
6,643,350

 
6,643,350

 
1.7
%
 
 
 
 
Revolving Credit Facility (LIBOR + 6.50% Cash, 1.00% LIBOR
Floor)(14)(17)
 
11/16/2022
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
20,109,600

 
20,109,600

 
20,109,600

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Dental Partners, Inc.
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(14)
 
9/25/2023
 
6,500,000

 
6,500,000

 
6,565,000

 
1.7
%
 
 
 
 
 
 
 
 
6,500,000

 
6,500,000

 
6,565,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Autosplice, Inc.
 
High Tech Industries
 
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(14)
 
6/30/2019
 
14,076,910

 
14,076,910

 
14,103,657

 
3.7
%
 
 
 
 
 
 
 
 
14,076,910

 
14,076,910

 
14,103,657

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Barry's Bootcamp Holdings, LLC(7)
 
Services:  Consumer
 
Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(14)
 
7/14/2022
 
7,628,570

 
7,628,570

 
7,628,570

 
2.0
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(14)
 
7/14/2022
 

 

 

 
0.0
%
 
 
 
 
Revolving Credit Facility (LIBOR + 6.50% Cash, 1.00% LIBOR
Floor)(14)(17)
 
7/14/2022
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
7,628,570

 
7,628,570

 
7,628,570

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

 
416,250

 

 
0.0
%
 
 
 
 
 
 
 
 

 
416,250

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Black Angus Steakhouses, LLC(7)
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(14)
 
4/24/2020
 
7,598,214

 
7,598,214

 
7,443,677

 
1.9
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(14)
 
4/24/2020
 

 

 

 
0.0
%
 
 
 
 
Revolving Credit Facility (LIBOR + 9.00% Cash, 1.00% LIBOR
Floor)(14)(17)
 
4/24/2020
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
7,598,214

 
7,598,214

 
7,443,677

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

F-5



Company(1)
 
Industry
 
Type of Investment(6)
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of
Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brook & Whittle Holdings Corp.(7)
 
Containers, Packaging & Glass
 
Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)(14)
 
10/17/2023
 
1,326,948

 
1,326,948

 
1,326,948

 
0.4
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)(14)(22)
 
10/17/2023
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
1,326,948

 
1,326,948

 
1,326,948

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central States Dermatology Services, LLC(7)
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(13)
 
4/20/2022
 
1,081,790

 
1,081,790

 
1,081,790

 
0.3
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(13)(18)
 
4/20/2022
 
208,830

 
208,830

 
208,830

 
0.1
%
 
 
 
 
 
 
 
 
1,290,620

 
1,290,620

 
1,290,620

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CP OPCO, LLC
 
Services:  Consumer
 
Senior Secured First Lien Term Loan B (ABR + 5.50% PIK, 4.75% ABR Floor)(10)(23)
 
4/1/2019
 
1,306,403

 
1,210,237

 
233,977

 
0.1
%
 
 
 
 
Senior Secured First Lien Term Loan C (ABR + 8.50% PIK, 4.75% ABR Floor)(10)(23)
 
4/1/2019
 
9,683,664

 
4,060,507

 

 
0.0
%
 
 
 
 
Preferred Facility (ABR + 7.00% PIK, 4.75% ABR Floor)(10)(23)
 
4/1/2019
 
5,883,641

 

 

 
0.0
%
 
 
 
 
Equity - 232 Common Units
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
16,873,708

 
5,270,744

 
233,977

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CPI International, Inc.
 
Aerospace & Defense
 
Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(13)
 
7/26/2025
 
4,010,025

 
3,991,168

 
3,981,153

 
1.0
%
 
 
 
 
 
 
 
 
4,010,025

 
3,991,168

 
3,981,153

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crow Precision Components, LLC
 
Aerospace & Defense
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(14)
 
9/30/2019
 
13,090,000

 
13,090,000

 
13,090,000

 
3.4
%
 
 
 
 
Equity - 350 Common Units
 
 
 

 
700,000

 
273,809

 
0.1
%
 
 
 
 
 
 
 
 
13,090,000

 
13,790,000

 
13,363,809

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CT Technologies Intermediate Holdings, Inc.(12)
 
Healthcare & Pharmaceuticals
 
Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)(13)
 
12/1/2022
 
7,500,000

 
7,500,000

 
7,540,500

 
2.0
%
 
 
 
 
 
 
 
 
7,500,000

 
7,500,000

 
7,540,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DHISCO Electronic Distribution, Inc.
 
Hotel, Gaming & Leisure
 
Senior Secured First Lien Term Loan A (LIBOR + 8.50% PIK, 1.50% LIBOR Floor)(14)
 
11/10/2019
 
4,210,775

 
4,210,775

 
4,210,775

 
1.1
%
 
 
 
 
Senior Secured First Lien Term Loan B (LIBOR + 11.00% PIK, 1.50% LIBOR Floor)(10)(14)
 
11/10/2019
 
15,683,196

 
14,896,413

 
2,336,796

 
0.6
%
 
 
 
 
Senior Secured First Lien Term Loan C (LIBOR + 12.25% PIK, 1.50% LIBOR Floor)(10)(14)
 
11/10/2019
 
13,659,337

 
11,600,575

 

 
0.0
%
 
 
 
 
Senior Secured First Lien Term Loan D (LIBOR + 13.25% PIK, 1.50% LIBOR Floor)(10)(14)
 
11/10/2019
 
12,870,616

 
4,701,476

 

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

 
1,230,769

 

 
0.0
%
 
 
 
 
 
 
 
 
46,423,924

 
36,640,008

 
6,547,571

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dream Finders Homes, LLC
 
Construction & Building
 
Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)(16)
 
10/1/2018
 
3,354,913

 
3,333,405

 
3,354,913

 
0.9
%
 
 
 
 
Preferred Equity (8.00% PIK)
 
 
 
3,716,187

 
3,716,187

 
3,716,187

 
1.0
%
 
 
 
 
 
 
 
 
7,071,100

 
7,049,592

 
7,071,100

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dynamic Energy Services International LLC
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan (13.50% PIK + LIBOR)(10)(16)
 
5/6/2019
 
19,478,696

 
18,762,114

 
11,800,194

 
3.1
%
 
 
 
 
 
 
 
 
19,478,696

 
18,762,114

 
11,800,194

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

F-6



Company(1)
 
Industry
 
Type of Investment(6)
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of
Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineered Machinery Holdings, Inc.(7)
 
Capital Equipment
 
Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(14)
 
7/18/2025
 
1,519,149

 
1,504,863

 
1,511,553

 
0.4
%
 
 
 
 
Senior Secured Second Lien Delayed Draw Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(14)(19)
 
7/18/2025
 
151,915

 
150,441

 
151,011

 
0.0
%
 
 
 
 
 
 
 
 
1,671,064

 
1,655,304

 
1,662,564

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
11,468,750

 
11,468,750

 
11,468,750

 
3.0
%
 
 
 
 
 
 
 
 
11,468,750

 
11,468,750

 
11,468,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Footprint Acquisition, LLC
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)(15)
 
2/27/2020
 
4,985,150

 
4,985,150

 
4,985,150

 
1.3
%
 
 
 
 
Preferred Equity (8.75% PIK)
 
 
 
6,397,302

 
6,397,302

 
6,397,302

 
1.7
%
 
 
 
 
Equity - 150 Common Units
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
11,382,452

 
11,382,452

 
11,382,452

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freedom Powersports, LLC
 
Automotive
 
Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.50% LIBOR Floor)(14)
 
9/26/2019
 
11,670,000

 
11,670,000

 
11,786,700

 
3.1
%
 
 
 
 
 
 
 
 
11,670,000

 
11,670,000

 
11,786,700

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Friedrich Holdings, Inc.
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)(13)
 
2/7/2023
 
9,950,000

 
9,950,000

 
10,049,500

 
2.6
%
 
 
 
 
 
 
 
 
9,950,000

 
9,950,000

 
10,049,500

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Global Accessories Group, LLC(12)
 
Consumer goods:  Non-durable
 
Equity - 3.8% Membership Interest
 
 
 

 
151,337

 
151,339

 
0.0
%
 
 
 
 
 
 
 
 

 
151,337

 
151,339

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Harrison Gypsum, LLC(12)
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 1.50% LIBOR Floor)(13)
 
12/21/2018
 
51,076,886

 
51,076,886

 
51,076,886

 
13.4
%
 
 
 
 
 
 
 
 
51,076,886

 
51,076,886

 
51,076,886

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Heligear Acquisition Co.
 
Aerospace & Defense
 
Senior Secured First Lien Note (10.25% Cash)(8)
 
10/15/2019
 
20,000,000

 
20,000,000

 
20,292,000

 
5.3
%
 
 
 
 
 
 
 
 
20,000,000

 
20,000,000

 
20,292,000

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Imagine! Print Solutions, LLC
 
Media: Advertising, Printing & Publishing
 
Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)(14)
 
6/21/2023
 
3,000,000

 
2,959,256

 
2,850,000

 
0.8
%
 
 
 
 
 
 
 
 
3,000,000

 
2,959,256

 
2,850,000

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Impact Sales, LLC(7)
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)(14)
 
12/30/2021
 
2,592,188

 
2,592,188

 
2,536,455

 
0.7
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)(14)(18)
 
12/30/2021
 
119,109

 
119,109

 
100,323

 
0.0
%
 
 
 
 
 
 
 
 
2,711,297

 
2,711,297

 
2,636,778

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
InterFlex Acquisition Company, LLC
 
Containers, Packaging & Glass
 
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)(13)
 
8/18/2022
 
14,437,500

 
14,437,500

 
14,138,644

 
3.7
%
 
 
 
 
 
 
 
 
14,437,500

 
14,437,500

 
14,138,644

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
L & S Plumbing Partnership, Ltd.
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)(14)
 
2/15/2022
 
20,373,199

 
20,373,199

 
20,631,938

 
5.4
%
 
 
 
 
 
 
 
 
20,373,199

 
20,373,199

 
20,631,938

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

F-7



Company(1)
 
Industry
 
Type of Investment(6)
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of
Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lighting Science Group Corporation
 
Containers, Packaging & Glass
 
Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(16)
 
2/19/2019
 
8,991,265

 
8,769,590

 
8,899,104

 
2.3
%
 
 
 
 
Warrants - 0.81% of Outstanding Equity(21)
 
2/19/2024
 

 
955,680

 

 
0.0
%
 
 
 
 
 
 
 
 
8,991,265

 
9,725,270

 
8,899,104

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manna Pro Products, LLC(7)
 
Consumer goods:  Non-durable
 
Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(13)
 
12/8/2023
 
7,980,000

 
7,980,000

 
7,980,000

 
2.1
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(13)(18)
 
12/8/2023
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
7,980,000

 
7,980,000

 
7,980,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchant Cash and Capital, LLC
 
Banking, Finance, Insurance & Real Estate
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 13.00% Cash, 3.00% LIBOR Floor)(13)
 
5/31/2017
 
1,839,715

 
1,839,715

 
1,839,715

 
0.5
%
 
 
 
 
Senior Secured Second Lien Term Loan (17.00% PIK)(10)
 
5/4/2017
 
16,894,625

 
15,167,277

 
4,223,656

 
1.1
%
 
 
 
 
 
 
 
 
18,734,340

 
17,006,992

 
6,063,371

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oxford Mining Company, LLC
 
Metals & Mining
 
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)(10)(14)
 
12/31/2018
 
21,315,899

 
20,614,725

 
15,396,474

 
4.0
%
 
 
 
 
 
 
 
 
21,315,899

 
20,614,725

 
15,396,474

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Path Medical, LLC(7)
 
Healthcare & Pharmaceuticals
 
Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)(14)
 
10/11/2021
 
8,151,557

 
7,769,036

 
8,165,306

 
2.1
%
 
 
 
 
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

 
2,811,028

 
0.7
%
 
 
 
 
Warrants - 1.56% of Outstanding Equity
 
1/9/2027
 

 
499,751

 
83,018

 
0.0
%
 
 
 
 
 
 
 
 
10,960,057

 
11,077,287

 
11,059,352

 
 
 
 
 
 
 
 
 
 


 


 


 
 
The Plastics Group, Inc.
 
Chemicals, Plastics & Rubber
 
Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK)(10)
 
2/28/2019
 
21,974,912

 
21,865,403

 
3,043,525

 
0.8
%
 
 
 
 
Senior Secured First Lien Term Loan 2 (11.00% Cash, 2.00% PIK)(10)
 
2/28/2018
 
469,960

 
467,652

 
469,959

 
0.1
%
 
 
 
 
 
 
 
 
22,444,872

 
22,333,055

 
3,513,484

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Point.360
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 6.00% PIK)(10)(16)
 
7/8/2020
 
2,103,712

 
2,103,712

 
1,860,313

 
0.5
%
 
 
 
 
Equity - 479,283 Common Units(20)
 
 
 

 
129,406

 
28,757

 
0.0
%
 
 
 
 
Warrants - 2.8% of Outstanding Equity(21)
 
7/8/2020
 

 
52,757

 
17,586

 
0.0
%
 
 
 
 
 
 
 
 
2,103,712

 
2,285,875

 
1,906,656

 
 
 
 
 
 
 
 
 
 


 


 


 
 
RMS Holding Company, LLC(7)