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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 June 30, 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 August 9, 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
 
June 30, 2018
 
September 30, 2017
 
(unaudited)
 
 
ASSETS
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (amortized cost of $421,438,532 and $625,108,198, respectively)
$
358,756,655

 
$
575,495,698

Affiliated investments (amortized cost of $98,688,136 and $91,026,729, respectively)
98,014,511

 
90,071,365

Controlled investments (amortized cost of $231,809,571 and $197,918,352, respectively)
178,097,139

 
171,423,836

Total investments at fair value
634,868,305


836,990,899

Cash and cash equivalents
144,002,046

 
108,571,958

Interest receivable
4,700,646

 
9,371,048

Other assets
4,075,286

 
3,321,822

Fees receivable
618,543

 
765,756

Deferred offering costs
354,754

 
307,015

Receivable for dispositions and investments sold
149,792

 
231,895

Total assets
$
788,769,372


$
959,560,393

 
 
 
 
LIABILITIES
 

 
 

Revolving credit facility payable (net of debt issuance costs of $1,150,886 and $1,777,181, respectively)
$
349,114

 
$
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 $8,817,564 and $4,122,533, respectively)
276,330,437

 
172,751,776

SBA debentures payable (net of debt issuance costs of $2,422,162 and $2,845,694, respectively)
147,577,838

 
147,154,306

Management and incentive fees payable (see Note 6)
3,532,513

 
4,312,004

Interest and fees payable
7,012,065

 
3,759,891

Accounts payable and accrued expenses
2,087,463

 
1,863,546

Administrator expenses payable (see Note 6)
949,696

 
859,794

Deferred tax liability
437,584

 
911,936

Deferred revenue
179,449

 
259,552

Due to affiliate
151,616

 
81,347

Total liabilities
$
438,607,775


$
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
(1,687,603
)
 
9,528,367

Accumulated net realized gain/(loss) from investments
(236,183,437
)
 
(176,662,889
)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes
(117,067,935
)
 
(77,536,733
)
Total net assets
350,161,597

 
460,429,317

Total liabilities and net assets
$
788,769,372


$
959,560,393

 
 
 
 
NET ASSET VALUE PER SHARE
$
6.43

 
$
8.45

 
See accompanying notes to consolidated financial statements.

F-1



Medley Capital Corporation

Consolidated Statements of Operations
 
For the three months ended June 30
 
For the nine months ended June 30
 
2018
 
2017
 
2018
 
2017
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
INVESTMENT INCOME:
 
 
 
 
 

 
 

Interest from investments
 
 
 
 
 

 
 

Non-controlled/non-affiliated investments:
 

 
 

 
 

 
 

Cash
$
7,736,213

 
$
16,029,549

 
$
31,793,233

 
$
51,064,282

Payment-in-kind
687,187

 
2,505,760

 
3,200,815

 
8,191,703

Affiliated investments:
 
 
 
 
 
 
 
Cash
537,261

 
461,758

 
1,605,335

 
1,492,454

Payment-in-kind
828,886

 
102,534

 
2,447,953

 
303,763

Controlled investments:
 
 
 
 
 
 
 
Cash
456,232

 
620,659

 
1,312,531

 
1,317,345

Payment-in-kind
896,059

 
1,009,148

 
2,429,712

 
4,052,050

Total interest income
11,141,838

 
20,729,408

 
42,789,579


66,421,597

Dividend income, net of provisional taxes ($0 and $0, respectively)
1,925,000

 
1,050,000

 
5,541,360

 
2,744,953

Interest from cash and cash equivalents
65,440

 
45,705

 
123,003

 
109,484

Fee income (see Note 9)
812,656

 
1,870,441

 
3,156,924

 
4,832,573

Total investment income
13,944,934

 
23,695,554

 
51,610,866


74,108,607

 
 
 
 
 
 
 
 
EXPENSES:
 

 
 

 
 

 
 

Base management fees (see Note 6)
3,532,513

 
4,449,688

 
11,376,236

 
13,460,589

Incentive fees (see Note 6)

 

 

 
895,675

Interest and financing expenses
6,754,085

 
7,320,995

 
20,983,301

 
24,238,454

Administrator expenses (see Note 6)
949,696

 
1,075,365

 
2,773,616

 
2,988,505

General and administrative
474,043

 
423,750

 
1,903,082

 
1,903,799

Professional fees
679,322

 
616,368

 
1,820,854

 
1,930,172

Directors fees
520,530

 
151,736

 
919,025

 
471,529

Insurance
130,345

 
99,199

 
393,633

 
298,109

Expenses before management and incentive fee waivers
13,040,534

 
14,137,101

 
40,169,747


46,186,832

Management fee waiver (see Note 6)

 
(10,669
)
 
(380,000
)
 
(47,941
)
Incentive fee waiver (see Note 6)

 

 

 
(43,663
)
Total expenses net of management and incentive fee waivers
13,040,534

 
14,126,432

 
39,789,747


46,095,228

Net investment income before excise taxes
904,400

 
9,569,122

 
11,821,119

 
28,013,379

Excise tax expense

 

 
(157,922
)
 
(267,183
)
NET INVESTMENT INCOME
904,400

 
9,569,122

 
11,663,197

 
27,746,196

 
 
 
 
 
 
 
 
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
 

 
 

 
 

 
 

Net realized gain/(loss) from investments
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
(34,999,937
)
 
(33,924,107
)
 
(58,352,065
)
 
(40,212,590
)
Affiliated investments

 

 

 

Controlled investments

 
(21,158,471
)
 

 
(21,158,471
)
Net realized gain/(loss) from investments
(34,999,937
)
 
(55,082,578
)
 
(58,352,065
)
 
(61,371,061
)
Net unrealized appreciation/(depreciation) on investments
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
15,078,448

 
21,686,516

 
(13,069,377
)
 
10,666,979

Affiliated investments
927,342

 
1,063,346

 
281,739

 
3,047,338

Controlled investments
(8,759,199
)
 
24,979,569

 
(27,217,916
)
 
16,660,406

Net unrealized appreciation/(depreciation) on investments
7,246,591

 
47,729,431

 
(40,005,554
)
 
30,374,723

Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments
193,849

 
782,608

 
474,352

 
782,608

Loss on extinguishment of debt
(10,848
)
 

 
(1,168,484
)
 
(456,364
)
Net gain/(loss) on investments
(27,570,345
)
 
(6,570,539
)
 
(99,051,751
)
 
(30,670,094
)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$
(26,665,945
)
 
$
2,998,583

 
$
(87,388,554
)
 
$
(2,923,898
)
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE
$
(0.49
)
 
$
0.06

 
$
(1.60
)
 
$
(0.05
)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE
$
0.02

 
$
0.18

 
$
0.21

 
$
0.51

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
$
0.10

 
$
0.16

 
$
0.42

 
$
0.60

See accompanying notes to consolidated financial statements.

F-2



Medley Capital Corporation

Consolidated Statements of Changes in Net Assets
 
For the nine months ended June 30
 
2018
 
2017
 
(unaudited)
 
(unaudited)
OPERATIONS:
 

 
 

Net investment income
$
11,663,197

 
$
27,746,196

Net realized gain/(loss) from investments
(58,352,065
)
 
(61,371,061
)
Net unrealized appreciation/(depreciation) on investments
(40,005,554
)
 
30,374,723

Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments
474,352

 
782,608

Loss on extinguishment of debt
(1,168,484
)
 
(456,364
)
Net increase/(decrease) in net assets from operations
(87,388,554
)
 
(2,923,898
)
SHAREHOLDER DISTRIBUTIONS:
 

 
 

Distributions from net investment income
(22,879,166
)
 
(32,684,527
)
Net decrease in net assets from shareholder distributions
(22,879,166
)
 
(32,684,527
)
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
(110,267,720
)
 
(35,621,203
)
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 $(1,687,603) and $5,873,430, respectively
$
350,161,597

 
$
481,297,939

 
 
 
 
Net asset value per common share
$
6.43

 
$
8.84

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 nine months ended June 30
 
2018
 
2017
 
(unaudited)
 
(unaudited)
Cash flows from operating activities
 

 
 

NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
$
(87,388,554
)
 
$
(2,923,898
)
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
(7,922,687
)
 
(12,932,037
)
Net amortization of premium/(discount) on investments
(733,280
)
 
(1,023,751
)
Amortization of debt issuance costs
2,729,768

 
3,875,212

Net realized (gain)/loss from investments
58,352,065

 
61,371,061

Net deferred income taxes
(474,352
)
 
(782,608
)
Net unrealized (appreciation)/depreciation on investments
40,005,554

 
(30,374,723
)
Proceeds from sale and settlements of investments
245,222,710

 
193,828,802

Purchases, originations and participations
(132,801,768
)
 
(177,252,501
)
Loss on extinguishment of debt
1,168,484

 
456,364

(Increase)/decrease in operating assets:
 
 
 
Interest receivable
4,670,402

 
2,352,738

Other assets
(753,464
)
 
(210,045
)
Fees receivable
147,213

 
760,729

Receivable for dispositions and investments sold
82,103

 
(3,516,017
)
Increase/(decrease) in operating liabilities:
 
 
 
Management and incentive fees payable, net
(779,491
)
 
(119,601
)
Interest and fees payable
3,252,174

 
1,480,521

Accounts payable and accrued expenses
223,917

 
(807,964
)
Administrator expenses payable
89,902

 
85,129

Deferred revenue
(80,103
)
 
(151,024
)
Due to affiliate
70,269

 
13,199

Payable for investments purchased, originated and participated

 
1,995,000

NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES
125,080,862

 
36,124,586

 
 
 
 
Cash flows from financing activities
 

 
 

Borrowings on debt
140,775,690

 
145,863,443

Paydowns on debt
(201,000,000
)
 
(134,500,000
)
Debt issuance costs paid
(6,499,559
)
 
(1,025,662
)
Payments of cash dividends
(22,879,166
)
 
(32,684,527
)
Offering costs paid
(47,739
)
 
(76,801
)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES
(89,650,774
)
 
(22,423,547
)
 
 
 
 
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
35,430,088

 
13,701,039

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
108,571,958

 
104,485,263

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
144,002,046

 
$
118,186,302

 
 
 
 
Supplemental Information:
 

 
 

Interest paid during the period
$
14,945,110

 
$
18,825,098

Supplemental non-cash information:
 
 
 
Payment-in-kind interest income
$
8,078,480

 
$
12,547,516

Net amortization of premium/(discount) on investments
$
733,280

 
$
1,023,751

Amortization of debt issuance costs
$
(2,729,768
)
 
$
(3,875,212
)
Non-cash purchase of investments
$
5,069,848

 
$
112,104,733

Non-cash sale of investments
$
5,069,848

 
$
112,104,733

 
See accompanying notes to consolidated financial statements.

F-4



Medley Capital Corporation
  
Consolidated Schedule of Investments

June 30, 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
 
$
17,368,750

 
$
17,368,750

 
$
17,519,858

 
5.0
%
 
 
 
 
 
 
 
 
17,368,750

 
17,368,750

 
17,519,858

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
9,813,512

 
9,813,512

 
9,813,512

 
2.8
%
 
 
 
 
 
 
 
 
9,813,512

 
9,813,512

 
9,813,512

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
13,432,500

 
13,432,500

 
13,382,800

 
3.8
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(14)
 
11/16/2022
 
6,630,037

 
6,630,037

 
6,605,506

 
1.9
%
 
 
 
 
Revolving Credit Facility (LIBOR + 6.50% Cash, 1.00% LIBOR
Floor)(14)(17)
 
11/16/2022
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
20,062,537

 
20,062,537

 
19,988,306

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
1.9
%
 
 
 
 
 
 
 
 
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
 
13,984,299

 
13,984,299

 
13,982,901

 
4.0
%
 
 
 
 
 
 
 
 
13,984,299

 
13,984,299

 
13,982,901

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Barry's Bootcamp Holdings, LLC(7)
 
Services:  Consumer
 
Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(14)
 
7/14/2022
 
7,628,570

 
7,628,570

 
7,585,087

 
2.2
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(14)
 
7/14/2022
 

 

 

 
0.0
%
 
 
 
 
Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR
Floor)(14)(17)
 
7/14/2022
 
880,000

 
880,000

 
880,000

 
0.3
%
 
 
 
 
 
 
 
 
8,508,570

 
8,508,570

 
8,465,087

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
7,546,875

 
7,546,875

 
7,393,272

 
2.1
%
 
 
 
 
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
%
 
 
 
 
 
 
 
 
7,546,875

 
7,546,875

 
7,393,272

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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 + 6.00% Cash, 1.00% LIBOR Floor)(14)
 
10/17/2023
 
1,323,622

 
1,323,622

 
1,323,622

 
0.4
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(14)(19)
 
10/17/2023
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
1,323,622

 
1,323,622

 
1,323,622

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
1,079,060

 
1,079,060

 
1,079,060

 
0.3
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)(13)(18)
 
4/20/2022
 
208,304

 
208,304

 
208,304

 
0.1
%
 
 
 
 
 
 
 
 
1,287,364

 
1,287,364

 
1,287,364

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CP OPCO, LLC
 
Services:  Consumer
 
Senior Secured First Lien Term Loan B (Prime + 5.50% PIK)(10)(15)
 
4/1/2019
 
1,340,255

 
1,210,237

 
234,008

 
0.1
%
 
 
 
 
Senior Secured First Lien Term Loan C (Prime + 8.50% PIK)(10)(15)
 
4/1/2019
 
10,009,261

 
4,060,507

 

 
0.0
%
 
 
 
 
Preferred Facility (Prime + 7.00% PIK)(10)(15)
 
4/1/2019
 
5,883,641

 

 

 
0.0
%
 
 
 
 
Equity - 232 Common Units
 
 
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
17,233,157

 
5,270,744

 
234,008

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
3,991,638

 
3,981,153

 
1.1
%
 
 
 
 
 
 
 
 
4,010,025

 
3,991,638

 
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
 
12,990,000

 
12,990,000

 
12,990,000

 
3.7
%
 
 
 
 
Equity - 350 Common Units
 
 
 

 
700,000

 
273,809

 
0.1
%
 
 
 
 
 
 
 
 
12,990,000

 
13,690,000

 
13,263,809

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
7,257,750

 
2.1
%
 
 
 
 
 
 
 
 
7,500,000

 
7,500,000

 
7,257,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
4,324,603

 
4,324,603

 
4,324,603

 
1.2
%
 
 
 
 
Senior Secured First Lien Term Loan B (LIBOR + 11.00% PIK, 1.50% LIBOR Floor)(10)(14)
 
11/10/2019
 
16,209,357

 
14,896,413

 
1,338,893

 
0.4
%
 
 
 
 
Senior Secured First Lien Term Loan C (LIBOR + 12.25% PIK, 1.50% LIBOR Floor)(10)(14)
 
11/10/2019
 
14,162,248

 
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
 
13,378,208

 
4,701,476

 

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

 
1,230,769

 

 
0.0
%
 
 
 
 
 
 
 
 
48,074,416

 
36,753,836

 
5,663,496

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dream Finders Homes, LLC
 
Construction & Building
 
Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)(16)
 
10/1/2018
 
2,643,665

 
2,633,790

 
2,643,665

 
0.7
%
 
 
 
 
Preferred Equity (8.00% PIK)
 
 
 
3,790,308

 
3,790,308

 
3,790,308

 
1.1
%
 
 
 
 
 
 
 
 
6,433,973

 
6,424,098

 
6,433,973

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dynamic Energy Services International LLC
 
Energy:  Oil & Gas
 
Senior Secured First Lien Term Loan (13.50% PIK + LIBOR)(10)(16)
 
5/6/2019
 
20,136,102

 
18,674,779

 
6,040,831

 
1.7
%
 
 
 
 
 
 
 
 
20,136,102

 
18,674,779

 
6,040,831

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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.
 
Capital Equipment
 
Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)(14)
 
7/18/2025
 
1,671,064

 
1,655,712

 
1,649,173

 
0.5
%
 
 
 
 
 
 
 
 
1,671,064

 
1,655,712

 
1,649,173

 
 
 
 
 
 
 
 
 
 


 


 


 
 
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
 
11,375,000

 
11,375,000

 
11,375,000

 
3.2
%
 
 
 
 
 
 
 
 
11,375,000

 
11,375,000

 
11,375,000

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Footprint Acquisition, LLC
 
Services:  Business
 
Preferred Equity (8.75% PIK)
 
 
 
6,535,326

 
6,535,326

 
6,535,326

 
1.9
%
 
 
 
 
Equity - 150 Common Units
 
 
 

 

 
33,080

 
0.0
%
 
 
 
 
 
 
 
 
6,535,326

 
6,535,326

 
6,568,406

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freedom Powersports, LLC
 
Automotive
 
Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.50% LIBOR Floor)(14)
 
9/26/2019
 
11,300,000

 
11,300,000

 
11,365,540

 
3.2
%
 
 
 
 
 
 
 
 
11,300,000

 
11,300,000

 
11,365,540

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Friedrich Holdings, Inc.
 
Construction & Building
 
Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)(13)
 
2/7/2023
 
9,601,349

 
9,601,349

 
9,697,362

 
2.8
%
 
 
 
 
 
 
 
 
9,601,349

 
9,601,349

 
9,697,362

 
 
 
 
 
 
 
 
 
 


 


 


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

 
151,337

 
151,339

 
0.0
%
 
 
 
 
 
 
 
 

 
151,337

 
151,339

 
 
 
 
 
 
 
 
 
 


 


 


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

 
20,000,000

 
20,154,000

 
5.8
%
 
 
 
 
 
 
 
 
20,000,000

 
20,000,000

 
20,154,000

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Imagine! Print Solutions, LLC
 
Media: Advertising, Printing & Publishing
 
Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)(13)
 
6/21/2023
 
3,000,000

 
2,960,738

 
2,786,400

 
0.8
%
 
 
 
 
 
 
 
 
3,000,000

 
2,960,738

 
2,786,400

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Impact Sales, LLC(7)
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)(14)
 
6/27/2023
 
3,465,984

 
3,465,984

 
3,465,984

 
1.0
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)(14)(18)
 
6/27/2023
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
3,465,984

 
3,465,984

 
3,465,984

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
14,250,000

 
14,250,000

 
13,407,825

 
3.8
%
 
 
 
 
 
 
 
 
14,250,000

 
14,250,000

 
13,407,825

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jackson Hewitt Tax Service Inc.
 
Services:  Consumer
 
Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)(13)
 
4/20/2023
 
7,000,000

 
7,000,000

 
7,000,000

 
2.0
%
 
 
 
 
 
 
 
 
7,000,000

 
7,000,000

 
7,000,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
19,951,324

 
19,951,324

 
20,110,934

 
5.7
%
 
 
 
 
 
 
 
 
19,951,324

 
19,951,324

 
20,110,934

 
 
 
 
 
 
 
 
 
 


 


 


 
 
Lighting Science Group Corporation
 
Containers, Packaging & Glass
 
Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)(16)
 
2/19/2019
 
5,898,958

 
5,736,620

 
5,848,816

 
1.7
%
 
 
 
 
Warrants - 0.81% of Outstanding Equity(20)
 
2/19/2024
 

 
955,680

 

 
0.0
%
 
 
 
 
 
 
 
 
5,898,958

 
6,692,300

 
5,848,816

 
 
 
 
 
 
 
 
 
 


 


 


 
 

F-7



Company(1)
 
Industry
 
Type of Investment(6)
 
Maturity
 
Par Amount(2)
 
Cost(3)
 
Fair Value
 
% of
Net Assets(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
5,467,307

 
5,467,307

 
5,420,288

 
1.5
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(13)(18)
 
12/8/2023
 
670,363

 
670,363

 
660,912

 
0.2
%
 
 
 
 
 
 
 
 
6,137,670

 
6,137,670

 
6,081,200

 
 
 
 
 
 
 
 
 
 


 


 


 
 
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
 
21,419,998

 
19,992,151

 
11,401,865

 
3.3
%
 
 
 
 
 
 
 
 
21,419,998

 
19,992,151

 
11,401,865

 
 
 
 
 
 
 
 
 
 


 


 


 
 
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

 
7,791,032

 
7,654,312

 
2.2
%
 
 
 
 
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

 
2,202,557

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

 
499,751

 

 
0.0
%
 
 
 
 
 
 
 
 
10,960,057

 
11,099,283

 
9,856,869

 
 
 
 
 
 
 
 
 
 


 


 


 
 
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

 
1,051,856

 
0.3
%
 
 
 
 
Equity - 479,283 Common Units
 
 
 

 
129,406

 

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

 
52,757

 

 
0.0
%
 
 
 
 
 
 
 
 
2,103,712

 
2,285,875

 
1,051,856

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redwood Services Group, LLC(7)
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(14)
 
6/6/2023
 
6,037,500

 
6,037,500

 
6,037,500

 
1.7
%
 
 
 
 
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(14)
 
6/6/2023
 

 

 

 
0.0
%
 
 
 
 
Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR
Floor)(14)(17)
 
6/6/2023
 

 

 

 
0.0
%
 
 
 
 
 
 
 
 
6,037,500

 
6,037,500

 
6,037,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RMS Holding Company, LLC(7)
 
Services:  Business
 
Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)(14)
 
11/16/2022
 
12,406,250

 
12,406,250

 
12,406,250

 
3.5
%
 
 
 
 
Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR
Floor)(14)(17)
 
11/16/2022
 
1,073,204

 
1,073,204

 
1,050,424

 
0.3
%
 
 
 
 
 
 
 
 
13,479,454

 
13,479,454

 
13,456,674

 
 
 
 
 
 
 
 
 
 


 


 


 
 
SavATree, LLC(7)
 
Environmental Industries
 
Senior Secured First Lien Term Loan (LIBOR + 5.25% Cash, 1.00% LIBOR Floor)(14)
 
6/2/2022
 
1,863,558

 
1,863,558

 
1,863,558