Attached files
| file | filename |
|---|---|
| EX-32.1 - EXHIBIT 32.1 - PROSPECT CAPITAL CORP | psec10-qq32020ex321.htm |
| EX-32.2 - EXHIBIT 32.2 - PROSPECT CAPITAL CORP | psec10-qq32020ex322.htm |
| EX-31.2 - EXHIBIT 31.2 - PROSPECT CAPITAL CORP | psec10-qq32020ex312.htm |
| EX-31.1 - EXHIBIT 31.1 - PROSPECT CAPITAL CORP | psec10-qq32020ex311.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 March 31, 2020 | |
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 | |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbols | Name of each exchange on which registered |
Common Stock, $0.001 par value | PSEC | NASDAQ Global Select Market |
6.25% Notes due 2024, par value $25 | PBB | New York Stock Exchange |
6.25% Notes due 2028, par value $25 | PBY | New York Stock Exchange |
6.875% Notes due 2029, par value $25 | PBC | New York Stock Exchange |
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 every Interactive Data File required to be submitted 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 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, a 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 ý | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o | |
Emerging growth company o | ||
(Do not check if a smaller reporting 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. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No ý
As of May 8, 2020, there were 369,356,358 shares of the registrant’s common stock, $0.001 par value per share, outstanding.
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,” “should,” “could,” “may,” “plan” 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, 2019, and those described from time to time in reports that we have filed or in the future may file with the Securities and Exchange Commission.
The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning:
• | our future operating results; |
• | our business prospects and the prospects of our portfolio companies; |
• | the impact of investments that we expect to make; |
• | our contractual arrangements and relationships with third parties; |
• | the dependence of our future success on the general economy and its impact on the industries in which we invest; |
• | the impact of global health epidemics, including, but not limited to, the recent and ongoing novel coronavirus (“Wuhan Virus”) pandemic, on our and our portfolio companies’ business and the global economy; |
• | uncertainty surrounding the financial stability of the United States, Europe, and China; |
• | the ability of our portfolio companies to achieve their objectives; |
• | difficulty in obtaining financing or raising capital, especially in the current credit and equity environment, and the impact of a protracted decline in the liquidity of credit markets on our and our portfolio companies’ business; |
• | the level and volatility of prevailing interest rates and credit spreads, magnified by the current turmoil in the credit markets; |
• | the impact of changes in London Interbank Offered Rate (“LIBOR”) on our operating results; |
• | adverse developments in the availability of desirable loan and investment opportunities whether they are due to competition, regulation or otherwise; |
• | a compression of the yield on our investments and the cost of our liabilities, as well as the level of leverage available to us; |
• | our regulatory structure and tax treatment, including our ability to operate as a business development company and a regulated investment company; |
• | the adequacy of our cash resources and working capital; |
• | the timing of cash flows, if any, from the operations of our portfolio companies; |
• | the ability of the Investment Adviser to locate suitable investments for us and to monitor and administer our investments; and |
• | authoritative generally accepted accounting principles or policy changes from such standard-setting bodies as the Financial Accounting Standards Board, the Securities and Exchange Commission, Internal Revenue Service, the NASDAQ Global Select Market, and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business. |
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)
March 31, 2020 | June 30, 2019 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Investments at fair value: | |||||||
Control investments (amortized cost of $2,290,680 and $2,385,806, respectively) | $ | 2,208,472 | $ | 2,475,924 | |||
Affiliate investments (amortized cost of $159,642 and $177,616, respectively) | 79,455 | 76,682 | |||||
Non-control/non-affiliate investments (amortized cost of $3,356,316 and $3,368,880, respectively) | 2,856,615 | 3,100,947 | |||||
Total investments at fair value (amortized cost of $5,806,638 and $5,932,302, respectively) | 5,144,542 | 5,653,553 | |||||
Cash | 46,646 | 107,098 | |||||
Receivables for: | |||||||
Interest, net | 15,653 | 26,504 | |||||
Other | 723 | 3,326 | |||||
Deferred financing costs on Revolving Credit Facility (Note 4) | 9,688 | 8,529 | |||||
Prepaid expenses | 344 | 1,053 | |||||
Total Assets | 5,217,596 | 5,800,063 | |||||
Liabilities | |||||||
Revolving Credit Facility (Notes 4 and 8) | 165,600 | 167,000 | |||||
Public Notes (less unamortized discount and debt issuance costs of $12,206 and $13,826, respectively) (Notes 6 and 8) | 781,513 | 780,548 | |||||
Prospect Capital InterNotes® (less unamortized debt issuance costs of $13,042 and $12,349, respectively) (Notes 7 and 8) | 659,517 | 695,350 | |||||
Convertible Notes (less unamortized debt issuance costs of $9,810 and $13,867, respectively) (Notes 5 and 8) | 577,391 | 739,997 | |||||
Due to Prospect Capital Management (Note 13) | 43,744 | 46,525 | |||||
Interest payable | 19,950 | 34,104 | |||||
Dividends payable | 22,069 | 22,028 | |||||
Accrued expenses | 5,192 | 5,414 | |||||
Due to Prospect Administration (Note 13) | 8,482 | 1,885 | |||||
Due to Affiliate (Note 13) | 38 | — | |||||
Other liabilities | 725 | 937 | |||||
Total Liabilities | 2,284,221 | 2,493,788 | |||||
Commitments and Contingencies (Note 3) | |||||||
Net Assets | $ | 2,933,375 | $ | 3,306,275 | |||
Components of Net Assets | |||||||
Common stock, par value $0.001 per share (1,000,000,000 common shares authorized; 367,817,926 and 367,131,025 issued and outstanding, respectively) (Note 9) | $ | 368 | $ | 367 | |||
Paid-in capital in excess of par (Note 9) | 4,044,185 | 4,039,872 | |||||
Total distributable earnings (loss) | (1,111,178 | ) | (733,964 | ) | |||
Net Assets | $ | 2,933,375 | $ | 3,306,275 | |||
Net Asset Value Per Share (Note 16) | $ | 7.98 | $ | 9.01 | |||
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 March 31, | Nine Months Ended March 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Investment Income | |||||||||||||||
Interest income: | |||||||||||||||
Control investments | $ | 51,833 | $ | 51,078 | $ | 152,301 | $ | 161,206 | |||||||
Affiliate investments | 2,623 | 230 | 5,325 | 631 | |||||||||||
Non-control/non-affiliate investments | 57,960 | 67,656 | 179,062 | 204,944 | |||||||||||
Structured credit securities | 26,390 | 36,112 | 88,733 | 105,731 | |||||||||||
Total interest income | 138,806 | 155,076 | 425,421 | 472,512 | |||||||||||
Dividend income: | |||||||||||||||
Control investments | 2,267 | 3,612 | 9,335 | 31,277 | |||||||||||
Affiliate investments | — | 659 | — | 659 | |||||||||||
Non-control/non-affiliate investments | 310 | 253 | 1,005 | 781 | |||||||||||
Total dividend income | 2,577 | 4,524 | 10,340 | 32,717 | |||||||||||
Other income: | |||||||||||||||
Control investments | 9,440 | 10,799 | 34,012 | 29,331 | |||||||||||
Non-control/non-affiliate investments | 3,678 | 710 | 8,528 | 4,854 | |||||||||||
Total other income (Note 10) | 13,118 | 11,509 | 42,540 | 34,185 | |||||||||||
Total Investment Income | 154,501 | 171,109 | 478,301 | 539,414 | |||||||||||
Operating Expenses | |||||||||||||||
Base management fee (Note 13) | 26,625 | 29,540 | 82,631 | 92,684 | |||||||||||
Income incentive fee (Note 13) | 17,119 | 19,315 | 51,855 | 60,808 | |||||||||||
Interest and credit facility expenses | 37,646 | 38,946 | 113,603 | 117,510 | |||||||||||
Allocation of overhead from Prospect Administration (Note 13) | 4,096 | 2,084 | 13,601 | 11,091 | |||||||||||
Audit, compliance and tax related fees | 421 | 680 | 2,729 | 3,462 | |||||||||||
Directors’ fees | 113 | 112 | 339 | 341 | |||||||||||
Other general and administrative expenses | 5 | 3,170 | 6,122 | 10,286 | |||||||||||
Total Operating Expenses | 86,025 | 93,847 | 270,880 | 296,182 | |||||||||||
Net Investment Income | 68,476 | 77,262 | 207,421 | 243,232 | |||||||||||
Net Realized and Net Change in Unrealized Gains (Losses) from Investments | |||||||||||||||
Net realized gains (losses) | |||||||||||||||
Control investments | — | 11,507 | — | 14,309 | |||||||||||
Non-control/non-affiliate investments | 26 | (2,024 | ) | (263 | ) | (792 | ) | ||||||||
Net realized gains (losses) | 26 | 9,483 | (263 | ) | 13,517 | ||||||||||
Net change in unrealized (losses) gains | |||||||||||||||
Control investments | (97,444 | ) | 11,686 | (172,328 | ) | (22,129 | ) | ||||||||
Affiliate investments | (9,516 | ) | (4,101 | ) | 20,746 | (23,750 | ) | ||||||||
Non-control/non-affiliate investments | (150,037 | ) | (2,155 | ) | (231,766 | ) | (98,338 | ) | |||||||
Net change in unrealized (losses) gains | (256,997 | ) | 5,430 | (383,348 | ) | (144,217 | ) | ||||||||
Net Realized and Net Change in Unrealized (Losses) Gains from Investments | (256,971 | ) | 14,913 | (383,611 | ) | (130,700 | ) | ||||||||
Net realized gains (losses) on extinguishment of debt | 2,796 | (2,980 | ) | (2,647 | ) | (6,931 | ) | ||||||||
Net (Decrease) Increase in Net Assets Resulting from Operations | $ | (185,699 | ) | $ | 89,195 | $ | (178,837 | ) | $ | 105,601 | |||||
Net (decrease) increase in net assets resulting from operations per share | $ | (0.51 | ) | $ | 0.24 | $ | (0.49 | ) | $ | 0.29 | |||||
Dividends declared per share | $ | (0.18 | ) | $ | (0.18 | ) | $ | (0.54 | ) | $ | (0.54 | ) | |||
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)
Common Stock | |||||||||||||||||||
Nine Months Ended March 31, 2019 | Shares | Par | Paid-in capital in excess of par | Distributable earnings (loss) | Total Net Assets | ||||||||||||||
Balance as of June 30, 2018 | 364,409,938 | $ | 364 | $ | 4,021,541 | $ | (614,858 | ) | $ | 3,407,047 | |||||||||
Net Decrease in Net Assets resulting from Operations: | |||||||||||||||||||
Net investment income | 243,232 | 243,232 | |||||||||||||||||
Net realized gains | 6,586 | 6,586 | |||||||||||||||||
Net change in unrealized losses | (144,217 | ) | (144,217 | ) | |||||||||||||||
Distributions to Shareholders | — | ||||||||||||||||||
Distributions from earnings | (197,555 | ) | (197,555 | ) | |||||||||||||||
Shares issued through reinvestment of dividends | 2,475,036 | 3 | 16,719 | 16,722 | |||||||||||||||
Tax reclassifications of net assets (Note 12) | (31 | ) | 31 | — | |||||||||||||||
Total increase (decrease) for the nine months ended March 31, 2019 | 2,475,036 | 3 | 16,688 | (91,923 | ) | (75,232 | ) | ||||||||||||
Balance as of March 31, 2019 | 366,884,974 | $ | 367 | $ | 4,038,229 | $ | (706,781 | ) | $ | 3,331,815 | |||||||||
Common Stock | |||||||||||||||||||
Nine Months Ended March 31, 2020 | Shares | Par | Paid-in capital in excess of par | Distributable earnings (loss) | Total Net Assets | ||||||||||||||
Balance as of June 30, 2019 | 367,131,025 | $ | 367 | $ | 4,039,872 | $ | (733,964 | ) | $ | 3,306,275 | |||||||||
Net Decrease in Net Assets resulting from Operations: | |||||||||||||||||||
Net investment income | 207,421 | 207,421 | |||||||||||||||||
Net realized losses | (2,910 | ) | (2,910 | ) | |||||||||||||||
Net change in unrealized losses | (383,348 | ) | (383,348 | ) | |||||||||||||||
Distributions to Shareholders | — | ||||||||||||||||||
Distributions from earnings | (198,455 | ) | (198,455 | ) | |||||||||||||||
Shares issued through reinvestment of dividends | 686,901 | 1 | 4,391 | 4,392 | |||||||||||||||
Tax reclassifications of net assets (Note 12) | (78 | ) | 78 | — | |||||||||||||||
Total increase (decrease) for the nine months ended March 31, 2020 | 686,901 | 1 | 4,313 | (377,214 | ) | (372,900 | ) | ||||||||||||
Balance as of March 31, 2020 | 367,817,926 | $ | 368 | $ | 4,044,185 | $ | (1,111,178 | ) | $ | 2,933,375 | |||||||||
See notes to consolidated financial statements.
6
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(in thousands, except share data)
(Unaudited)
Common Stock | |||||||||||||||||||
Three Months Ended March 31, 2019 | Shares | Par | Paid-in capital in excess of par | Distributable earnings (loss) | Total Net Assets | ||||||||||||||
Balance as of December 31, 2018 | 366,055,966 | $ | 366 | $ | 4,032,761 | $ | (729,952 | ) | $ | 3,303,175 | |||||||||
Net Increase in Net Assets resulting from Operations: | |||||||||||||||||||
Net investment income | 77,262 | 77,262 | |||||||||||||||||
Net realized gains | 6,503 | 6,503 | |||||||||||||||||
Net change in unrealized losses | 5,430 | 5,430 | |||||||||||||||||
Distributions to Shareholders | — | ||||||||||||||||||
Distributions from earnings | (66,024 | ) | (66,024 | ) | |||||||||||||||
Shares issued through reinvestment of dividends | 829,008 | 1 | 5,468 | 5,469 | |||||||||||||||
Total increase (decrease) for the three months ended March 31, 2019 | 829,008 | 1 | 5,468 | 23,171 | 28,640 | ||||||||||||||
Balance as of March 31, 2019 | 366,884,974 | $ | 367 | $ | 4,038,229 | $ | (706,781 | ) | $ | 3,331,815 | |||||||||
Common Stock | |||||||||||||||||||
Three Months Ended March 31, 2020 | Shares | Par | Paid-in capital in excess of par | Distributable earnings (loss) | Total Net Assets | ||||||||||||||
Balance as of December 31, 2019 | 367,584,244 | $ | 367 | $ | 4,042,785 | $ | (859,287 | ) | $ | 3,183,865 | |||||||||
Net Decrease in Net Assets resulting from Operations: | |||||||||||||||||||
Net investment income | 68,476 | 68,476 | |||||||||||||||||
Net realized gains | 2,822 | 2,822 | |||||||||||||||||
Net change in unrealized losses | (256,997 | ) | (256,997 | ) | |||||||||||||||
Distributions to Shareholders | — | ||||||||||||||||||
Distributions from earnings | (66,192 | ) | (66,192 | ) | |||||||||||||||
Shares issued through reinvestment of dividends | 233,682 | 1 | 1,400 | 1,401 | |||||||||||||||
Total increase (decrease) for the three months ended March 31, 2020 | 233,682 | 1 | 1,400 | (251,891 | ) | (250,490 | ) | ||||||||||||
Balance as of March 31, 2020 | 367,817,926 | $ | 368 | $ | 4,044,185 | $ | (1,111,178 | ) | $ | 2,933,375 | |||||||||
See notes to consolidated financial statements.
7
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share data)
(Unaudited)
Nine Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Operating Activities | |||||||
Net (decrease) increase in net assets resulting from operations | $ | (178,837 | ) | $ | 105,601 | ||
Net realized losses on extinguishment of debt | 2,647 | 6,931 | |||||
Net realized losses (gains) on investments | 263 | (13,517 | ) | ||||
Net change in net unrealized losses (gains) on investments | 383,348 | 144,217 | |||||
Amortization of discounts (accretion of premiums), net | 5,750 | (2,654 | ) | ||||
Accretion of discount on Public Notes (Note 6) | 775 | 406 | |||||
Amortization of deferred financing costs | 6,342 | 8,699 | |||||
Payment-in-kind interest | (35,134 | ) | (29,663 | ) | |||
Structuring fees | (5,562 | ) | (3,434 | ) | |||
Change in operating assets and liabilities: | |||||||
Payments for purchases of investments | (721,764 | ) | (483,508 | ) | |||
Proceeds from sale of investments and collection of investment principal | 882,111 | 415,165 | |||||
Increase in due to broker | — | 25,660 | |||||
Decrease in due to Prospect Capital Management | (2,781 | ) | (190 | ) | |||
Decrease in interest receivable, net | 10,851 | 2,858 | |||||
Decrease in interest payable | (14,154 | ) | (8,315 | ) | |||
(Decrease) increase in accrued expenses | (222 | ) | 52 | ||||
Decrease in due from broker | — | 2,490 | |||||
Increase in due to affiliates | 38 | — | |||||
Decrease in other liabilities | (212 | ) | (903 | ) | |||
Decrease in other receivables | 2,603 | 882 | |||||
Decrease in prepaid expenses | 709 | 699 | |||||
Increase (decrease) in due to Prospect Administration | 6,597 | (405 | ) | ||||
Net Cash Provided by Operating Activities | 343,368 | 171,071 | |||||
Financing Activities | |||||||
Borrowings under Revolving Credit Facility (Note 4) | 990,000 | 912,154 | |||||
Principal payments under Revolving Credit Facility (Note 4) | (991,400 | ) | (850,154 | ) | |||
Issuances of Public Notes, net of original issue discount (Note 6) | — | 215,638 | |||||
Redemptions of Public Notes (Note 6) | (446 | ) | (153,536 | ) | |||
Redemptions of Convertible Notes, net (Note 5) | (165,159 | ) | (246,670 | ) | |||
Issuance of Convertible Notes (Note 5) | — | 201,250 | |||||
Issuances of Prospect Capital InterNotes® (Note 7) | 224,934 | 124,643 | |||||
Redemptions of Prospect Capital InterNotes®, net (Note 7) | (260,074 | ) | (130,846 | ) | |||
Financing costs paid and deferred | (7,651 | ) | (26,057 | ) | |||
Dividends paid | (194,024 | ) | (180,685 | ) | |||
Net Cash Used in Financing Activities | (403,820 | ) | (134,263 | ) | |||
Net (Decrease) Increase in Cash | (60,452 | ) | 36,808 | ||||
Cash at beginning of period | 107,098 | 83,758 | |||||
Cash at End of Period | $ | 46,646 | $ | 120,566 | |||
Supplemental Disclosures | |||||||
Cash paid for interest | $ | 120,640 | $ | 116,720 | |||
Purchases of investments settled net of proceeds from sale of investments | $ | 61,086 | $ | — | |||
Non-Cash Financing Activities | |||||||
Value of shares issued through reinvestment of dividends | $ | 4,392 | $ | 16,722 | |||
Cost basis of investments written off as worthless | $ | 2,420 | $ | 371 | |||
See notes to consolidated financial statements.
8
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS AS OF MARCH 31, 2020 (Unaudited)
(in thousands, except share data)
March 31, 2020 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(51) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Control Investments (greater than 25.00% voting control)(49) | |||||||||||||
CP Energy Services Inc.(20) | Energy Equipment & Services | Senior Secured Term Loan (12.46% (LIBOR + 11.00% with 1.00% LIBOR floor), due 12/29/2022)(11)(46) | 10/1/2017 | $ | 35,622 | $ | 35,622 | $ | 35,622 | 1.2% | |||
Senior Secured Term Loan A to Spartan Energy Services, Inc. (9.00% (LIBOR + 8.00% with 1.00% LIBOR floor), due 12/31/2022)(13) | 10/20/2014 | 13,156 | 13,156 | 13,156 | 0.5% | ||||||||
Senior Secured Term Loan B to Spartan Energy Services, Inc. (15.00% PIK (LIBOR + 14.00% with 1.00% LIBOR floor), in non-accrual status effective 1/1/2020, due 12/31/2022)(13) | 10/20/2014 | 24,302 | 23,361 | 6,400 | 0.2% | ||||||||
Series B Convertible Preferred Stock (16.00%, 790 shares)(16) | 10/30/2015 | 63,225 | 17,591 | 0.6% | |||||||||
Common Stock (102,924 shares)(16) | 8/2/2013 | 86,241 | — | —% | |||||||||
221,605 | 72,769 | 2.5% | |||||||||||
Credit Central Loan Company, LLC(21) | Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2024)(14)(46) | 12/28/2012 | 59,785 | 56,705 | 59,785 | 2.0% | ||||||
Class A Units (14,867,312 units)(14)(16) | 12/28/2012 | 19,331 | 11,802 | 0.4% | |||||||||
Net Revenues Interest (25% of Net Revenues)(14)(16) | 1/28/2015 | — | — | —% | |||||||||
76,036 | 71,587 | 2.4% | |||||||||||
Echelon Transportation, LLC | Aerospace & Defense | Senior Secured Term Loan (11.75% (LIBOR + 9.75% with 2.00% LIBOR floor) plus 2.25% PIK, due 3/31/2022)(13)(46) | 3/31/2014 | 42,572 | 42,572 | 42,572 | 1.5% | ||||||
Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.00% PIK, due 12/7/2024)(13)(46) | 12/9/2016 | 20,399 | 20,399 | 20,399 | 0.7% | ||||||||
Membership Interest (100%)(16) | 3/31/2014 | 22,738 | 21,869 | 0.7% | |||||||||
85,709 | 84,840 | 2.9% | |||||||||||
First Tower Finance Company LLC(23) | Consumer Finance | Subordinated Term Loan to First Tower, LLC (10.00% plus 10.50% PIK, due 6/24/2024)(14)(46) | 6/24/2014 | 274,350 | 274,350 | 274,350 | 9.3% | ||||||
Class A Units (95,709,910 units)(14)(16) | 6/14/2012 | 81,146 | 198,835 | 6.8% | |||||||||
355,496 | 473,185 | 16.1% | |||||||||||
Freedom Marine Solutions, LLC(24) | Energy Equipment & Services | Membership Interest (100%)(16) | 11/9/2006 | 43,892 | 15,418 | 0.5% | |||||||
43,892 | 15,418 | 0.5% | |||||||||||
InterDent, Inc.(29) | Health Care Providers & Services | Senior Secured Term Loan A/B (7.05% (LIBOR + 5.05% with 2.00% LIBOR floor), due 9/5/2020)(13) | 8/1/2018 | 14,000 | 14,000 | 14,000 | 0.5% | ||||||
Senior Secured Term Loan A (6.49% (LIBOR + 5.50% with 0.75% LIBOR floor), due 9/5/2020)(13) | 8/3/2012 | 77,994 | 77,994 | 77,994 | 2.6% | ||||||||
Senior Secured Term Loan B (10.00% PIK, due 9/5/2020)(46) | 8/3/2012 | 125,276 | 125,276 | 110,358 | 3.8% | ||||||||
Senior Secured Term Loan C (18.00% PIK, in non-accrual status effective 10/1/2018, due 9/5/2020) | 3/22/2018 | 46,800 | 35,766 | — | —% | ||||||||
Senior Secured Term Loan D (1.00% PIK, in non-accrual status effective 10/1/2018, due 9/5/2020) | 9/19/2018 | 8,834 | 8,751 | — | —% | ||||||||
Common Stock (99,900 shares)(16) | 5/3/2019 | 1 | — | —% | |||||||||
261,788 | 202,352 | 6.9% | |||||||||||
See notes to consolidated financial statements.
9
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS AS OF MARCH 31, 2020 (Unaudited)
(in thousands, except share data)
March 31, 2020 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(51) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Control Investments (greater than 25.00% voting control)(49) | |||||||||||||
Kickapoo Ranch Pet Resort | Diversified Consumer Services | Membership Interest (100%)(16) | 8/26/2019 | $ | 2,378 | $ | 3,838 | 0.1% | |||||
2,378 | 3,838 | 0.1% | |||||||||||
MITY, Inc.(25) | Commercial Services & Supplies | Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 6/30/2020)(3)(11) | 9/19/2013 | $ | 26,250 | 26,250 | 26,250 | 0.9% | |||||
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 6/30/2020)(3)(11)(46) | 9/19/2013 | 32,187 | 32,187 | 28,923 | 1.0% | ||||||||
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due 1/1/2028)(14) | 9/19/2013 | 5,683 | 6,488 | — | —% | ||||||||
Common Stock (42,053 shares)(16) | 9/19/2013 | 6,849 | — | —% | |||||||||
71,774 | 55,173 | 1.9% | |||||||||||
National Property REIT Corp.(26) | Equity Real Estate Investment Trusts (REITs) / Online Lending / Structured Finance | Senior Secured Term Loan A (6.50% (LIBOR + 3.50% with 3.00% LIBOR floor) plus 5.00% PIK, due 12/31/2023)(11)(46) | 12/31/2018 | 311,218 | 311,218 | 311,218 | 10.6% | ||||||
Senior Secured Term Loan B (5.00% (LIBOR + 2.00% with 3.00% LIBOR floor) plus 5.50% PIK, due 12/31/2023)(11)(46) | 12/31/2018 | 59,316 | 59,316 | 57,639 | 2.0% | ||||||||
Senior Secured Term Loan C (13.46% (LIBOR + 12.00% with 1.00% LIBOR floor) plus 2.25% PIK, due 12/31/2023)(11)(46) | 10/31/2019 | 78,359 | 78,359 | 78,359 | 2.7% | ||||||||
Residual Profit Interest(37) | 12/31/2018 | — | 36,934 | 1.2% | |||||||||
Common Stock (3,253,060 shares)(52) | 12/31/2013 | 183,426 | 415,862 | 14.2% | |||||||||
632,319 | 900,012 | 30.7% | |||||||||||
Nationwide Loan Company LLC(27) | Consumer Finance | Senior Subordinated Term Loan to Nationwide Acceptance LLC (10.00% plus 10.00% PIK, due 6/18/2020)(14)(46) | 6/18/2014 | 19,588 | 19,588 | 19,588 | 0.7% | ||||||
Class A Units (38,550,460 units)(14) | 1/31/2013 | 20,462 | 15,678 | 0.5% | |||||||||
40,050 | 35,266 | 1.2% | |||||||||||
NMMB, Inc.(28) | Media | Delayed Draw Term Loan – $10,000 Commitment (10.50% (LIBOR + 8.50% with 2.00% LIBOR floor), due 12/30/2024)(11)(15) | 3/25/2020 | — | — | — | —% | ||||||
Senior Secured Note (10.50% (LIBOR + 8.50% with 2.00% LIBOR floor), due 12/30/2024)(11) | 12/30/2019 | 5,062 | 5,062 | 5,062 | 0.1% | ||||||||
Common Stock (21,419 shares) | 12/30/2019 | — | 12,869 | 31,498 | 1.1% | ||||||||
17,931 | 36,560 | 1.2% | |||||||||||
Pacific World Corporation(40) | Personal Products | Revolving Line of Credit – $26,000 Commitment (8.25% (LIBOR + 7.25% with 1.00% LIBOR floor), in non-accrual status effective 10/1/2019, due 9/26/2020)(13)(15) | 9/26/2014 | 19,625 | 19,625 | 19,625 | 0.7% | ||||||
Senior Secured Term Loan A (6.25% PIK (LIBOR + 5.25% with 1.00% LIBOR floor), in non-accrual status effective 10/24/2018, due 9/26/2020)(13) | 12/31/2014 | 105,045 | 92,277 | 33,599 | 1.1% | ||||||||
Senior Secured Term Loan B (11.20% PIK (LIBOR + 9.25% with 1.00% LIBOR floor), in non-accrual status effective 5/21/2018, due 9/26/2020)(13) | 12/31/2014 | 119,927 | 96,500 | — | —% | ||||||||
Convertible Preferred Equity (247,330 shares)(16) | 6/15/2018 | 37,100 | — | —% | |||||||||
Common Stock (6,778,414 shares)(16) | 9/29/2017 | — | — | —% | |||||||||
245,502 | 53,224 | 1.8% | |||||||||||
R-V Industries, Inc. | Machinery | Senior Subordinated Note (10.46% (LIBOR + 9.00% with 1.00% LIBOR floor), due 3/31/2022)(3)(11) | 6/12/2013 | 28,622 | 28,622 | 28,622 | 1.0% | ||||||
Common Stock (745,107 shares)(16) | 6/26/2007 | 6,866 | 9,221 | 0.3% | |||||||||
35,488 | 37,843 | 1.3% | |||||||||||
See notes to consolidated financial statements.
10
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS AS OF MARCH 31, 2020 (Unaudited)
(in thousands, except share data)
March 31, 2020 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(51) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Control Investments (greater than 25.00% voting control)(49) | |||||||||||||
Universal Turbine Parts, LLC(34) | Trading Companies & Distributors | Delayed Draw Term Loan – $5,000 Commitment (10.25% (LIBOR + 7.75% with 2.50% LIBOR floor), due 7/22/2021)(13)(15) | 2/28/2019 | $ | 2,894 | $ | 2,894 | $ | 2,894 | 0.1% | |||
Senior Secured Term Loan A (7.21% (LIBOR + 5.75% with 1.00% LIBOR floor), due 7/22/2021)(11) | 7/22/2016 | 30,225 | 30,225 | 25,339 | 0.9% | ||||||||
Senior Secured Term Loan B (13.21% PIK (LIBOR + 11.75% with 1.00% LIBOR floor), in non-accrual status effective 7/1/2018, due 7/22/2021)(11) | 7/22/2016 | 41,553 | 32,500 | — | —% | ||||||||
Common Stock (10,000 units)(16) | 12/10/2018 | — | — | —% | |||||||||
65,619 | 28,233 | 1.0% | |||||||||||
USES Corp.(30) | Commercial Services & Supplies | Senior Secured Term Loan A (9.00% PIK, in non-accrual status effective 4/1/2016, due 7/29/2022) | 3/31/2014 | 49,199 | 30,651 | 16,182 | 0.6% | ||||||
Senior Secured Term Loan B (15.50% PIK, in non-accrual status effective 4/1/2016, due 7/29/2022) | 3/31/2014 | 63,752 | 35,568 | — | —% | ||||||||
Common Stock (268,962 shares)(16) | 6/15/2016 | — | — | —% | |||||||||
66,219 | 16,182 | 0.6% | |||||||||||
Valley Electric Company, Inc.(31) | 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)(11)(46) | 12/31/2012 | 10,430 | 10,430 | 10,430 | 0.4% | ||||||
Senior Secured Note (8.00% plus 10.00% PIK, due 6/23/2024)(46) | 6/24/2014 | 33,301 | 33,301 | 33,301 | 1.1% | ||||||||
Consolidated Revenue Interest (2.0%)(38) | 6/22/2018 | — | 2,616 | 0.1% | |||||||||
Common Stock (50,000 shares) | 12/31/2012 | 25,143 | 75,643 | 2.6% | |||||||||
68,874 | 121,990 | 4.2% | |||||||||||
Total Control Investments | $ | 2,290,680 | $ | 2,208,472 | 75.3% | ||||||||
See notes to consolidated financial statements.
11
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS AS OF MARCH 31, 2020 (Unaudited)
(in thousands, except share data)
March 31, 2020 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(51) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Affiliate Investments (5.00% to 24.99% voting control)(48) | |||||||||||||
Edmentum Ultimate Holdings, LLC(22) | Diversified Consumer Services | Second Lien Revolving Credit Facility to Edmentum, Inc. – $7,834 Commitment (5.00% PIK, due 12/9/2021)(15)(46) | 6/9/2015 | $ | 8,434 | $ | 8,434 | $ | 8,434 | 0.3% | |||
Unsecured Senior PIK Note (8.50% PIK, due 12/9/2021)(46) | 6/9/2015 | 8,734 | 8,734 | 8,734 | 0.3% | ||||||||
Unsecured Junior PIK Note (10.00% PIK, due 12/9/2021)(46) | 6/9/2015 | 41,998 | 27,614 | 39,529 | 1.3% | ||||||||
Class A Units (370,964 units)(16) | 6/9/2015 | — | 6,577 | — | —% | ||||||||
51,359 | 56,697 | 1.9% | |||||||||||
Nixon, Inc.(39) | Textiles, Apparel & Luxury Goods | Common Stock (857 units)(16) | 5/12/2017 | — | — | — | —% | ||||||
— | — | —% | |||||||||||
Targus Cayman HoldCo Limited(33) | Textiles, Apparel & Luxury Goods | Common Stock (7,383,395 shares) | 2/12/2016 | — | 2,805 | 18,042 | 0.6% | ||||||
2,805 | 18,042 | 0.6% | |||||||||||
United Sporting Companies, Inc.(18) | Distributors | Second Lien Term Loan (13.25% (LIBOR + 11.00% with 1.75% LIBOR floor) plus 2.00% PIK, in non-accrual status effective 4/1/2017, due 11/16/2019)(13) | 9/28/2012 | 147,470 | 105,478 | 4,716 | 0.2% | ||||||
Common Stock (218,941 shares)(16) | 5/2/2017 | — | — | — | —% | ||||||||
105,478 | 4,716 | 0.2% | |||||||||||
Total Affiliate Investments | $ | 159,642 | $ | 79,455 | 2.7% | ||||||||
See notes to consolidated financial statements.
12
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS AS OF MARCH 31, 2020 (Unaudited)
(in thousands, except share data)
March 31, 2020 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(51) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
8th Avenue Food & Provisions, Inc. | Food Products | Second Lien Term Loan (8.55% (LIBOR + 7.75%), due 10/1/2026)(3)(8)(13) | 10/10/2018 | $ | 25,000 | $ | 24,847 | $ | 25,000 | 0.9% | |||
24,847 | 25,000 | 0.9% | |||||||||||
ACE Cash Express, Inc. | Consumer Finance | Senior Secured Note (12.00%, due 12/15/2022)(8)(14) | 12/15/2017 | 30,000 | 28,685 | 24,651 | 0.8% | ||||||
28,685 | 24,651 | 0.8% | |||||||||||
Ahead Data Blue, LLC | IT Services | Second Lien Term Loan (10.00% (LIBOR + 8.50% with 1.50% LIBOR floor), due 11/8/2025)(3)(13) | 12/13/2019 | 70,000 | 70,000 | 70,000 | 2.4% | ||||||
70,000 | 70,000 | 2.4% | |||||||||||
Apidos CLO XI | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 8.47%, due 10/17/2030)(5)(14) | 1/17/2013 | 40,500 | 32,907 | 25,004 | 0.9% | ||||||
32,907 | 25,004 | 0.9% | |||||||||||
Apidos CLO XII | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 14.71%, due 4/15/2031)(5)(14) | 4/18/2013 | 52,203 | 37,578 | 28,408 | 1.0% | ||||||
37,578 | 28,408 | 1.0% | |||||||||||
Apidos CLO XV | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 13.13%, due 4/21/2031)(5)(14) | 10/16/2013 | 48,515 | 38,910 | 27,649 | 0.9% | ||||||
38,910 | 27,649 | 0.9% | |||||||||||
Apidos CLO XXII | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 14.15%, due 4/21/2031)(5)(14) | 10/14/2015 | 35,855 | 29,998 | 23,429 | 0.8% | ||||||
29,998 | 23,429 | 0.8% | |||||||||||
Ark-La-Tex Wireline Services, LLC | Energy Equipment & Services | Escrow Receivable | 4/8/2014 | — | — | —% | |||||||
— | — | —% | |||||||||||
Atlantis Health Care Group (Puerto Rico), Inc. | Health Care Providers & Services | Revolving Line of Credit – $3,000 Commitment (10.75% (LIBOR + 8.75% with 2.00% LIBOR floor), due 4/30/2021)(11)(15) | 2/21/2013 | 2,000 | 2,000 | 2,000 | 0.1% | ||||||
Senior Secured Term Loan (10.75% (LIBOR + 8.75% with 2.00% LIBOR floor), due 4/30/2021)(3)(11) | 2/21/2013 | 72,215 | 72,215 | 72,215 | 2.5% | ||||||||
74,215 | 74,215 | 2.6% | |||||||||||
Barings CLO 2018-III | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 5.11%, due 7/20/2029)(5)(14) | 11/18/2014 | 83,098 | 48,635 | 30,372 | 1.0% | ||||||
48,635 | 30,372 | 1.0% | |||||||||||
Broder Bros., Co. | Textiles, Apparel & Luxury Goods | Senior Secured Note (9.77% (LIBOR + 8.50% with 1.25% LIBOR floor), due 12/02/2022)(3)(11) | 12/4/2017 | 171,927 | 171,927 | 170,497 | 5.8% | ||||||
171,927 | 170,497 | 5.8% | |||||||||||
Brookside Mill CLO Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 0.00%, due 1/17/2028)(5)(14)(17) | 5/23/2013 | 36,300 | 17,553 | 11,212 | 0.4% | ||||||
17,553 | 11,212 | 0.4% | |||||||||||
California Street CLO IX Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 7.41%, due 7/16/2032)(5)(14) | 5/8/2012 | 58,915 | 41,325 | 27,670 | 0.9% | ||||||
41,325 | 27,670 | 0.9% | |||||||||||
Candle-Lite Company, LLC | Household Products | Senior Secured Term Loan A (7.09% (LIBOR + 5.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11) | 1/23/2018 | 12,000 | 12,000 | 11,943 | 0.4% | ||||||
Senior Secured Term Loan B (11.09% (LIBOR + 9.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11) | 1/23/2018 | 12,500 | 12,500 | 11,905 | 0.4% | ||||||||
24,500 | 23,848 | 0.8% | |||||||||||
See notes to consolidated financial statements.
13
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS AS OF MARCH 31, 2020 (Unaudited)
(in thousands, except share data)
March 31, 2020 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(51) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Capstone Logistics Acquisition, Inc. | Commercial Services & Supplies | Second Lien Term Loan (9.32% (LIBOR + 8.25% with 1.00% LIBOR floor), due 10/7/2022)(3)(8)(53) | 10/7/2014 | $ | 98,982 | $ | 98,769 | $ | 98,982 | 3.4% | |||
98,769 | 98,982 | 3.4% | |||||||||||
Carlyle C17 CLO Limited | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 19.27%, due 4/30/2031)(5)(14) | 2/21/2013 | 24,870 | 15,090 | 12,316 | 0.4% | ||||||
15,090 | 12,316 | 0.4% | |||||||||||
Carlyle Global Market Strategies CLO 2014-4-R, Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 19.32%, due 7/15/2030)(5)(14) | 4/12/2017 | 25,534 | 17,885 | 15,788 | 0.5% | ||||||
17,885 | 15,788 | 0.5% | |||||||||||
Carlyle Global Market Strategies CLO 2016-3, Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 12.03%, due 10/20/2029)(5)(14) | 9/13/2016 | 32,200 | 32,966 | 24,910 | 0.8% | ||||||
32,966 | 24,910 | 0.8% | |||||||||||
CCPI Inc.(19) | Electronic Equipment, Instruments & Components | Escrow Receivable | 2/28/2019 | — | 2,337 | 0.1% | |||||||
— | 2,337 | 0.1% | |||||||||||
CCS-CMGC Holdings, Inc. | Health Care Providers & Services | First Lien Term Loan (7.28% (LIBOR + 5.50%), due 10/1/2025)(3)(8)(11) | 5/23/2019 | 3,639 | 3,588 | 3,492 | 0.1% | ||||||
First Lien Term Loan (6.57% (LIBOR + 5.50%), due 10/1/2025)(3)(8)(53) | 5/23/2019 | 6,009 | 5,925 | 5,765 | 0.2% | ||||||||
Second Lien Term Loan (10.78% (LIBOR + 9.00%), due 10/1/2026)(3)(8)(11) | 10/12/2018 | 37,000 | 36,421 | 35,752 | 1.2% | ||||||||
45,934 | 45,009 | 1.5% | |||||||||||
Cent CLO 21 Limited | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 10.64%, due 7/27/2030)(5)(14) | 6/18/2014 | 49,552 | 38,925 | 25,563 | 0.9% | ||||||
38,925 | 25,563 | 0.9% | |||||||||||
CIFC Funding 2013-III-R, Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 9.21%, due 4/24/2031)(5)(14) | 9/12/2013 | 44,100 | 29,695 | 20,909 | 0.7% | ||||||
29,695 | 20,909 | 0.7% | |||||||||||
CIFC Funding 2013-IV, Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 12.90%, due 4/28/2031)(5)(14) | 11/14/2013 | 45,500 | 32,887 | 27,111 | 0.9% | ||||||
32,887 | 27,111 | 0.9% | |||||||||||
CIFC Funding 2014-IV-R, Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 15.31%, due 10/17/2030)(5)(14) | 9/3/2014 | 44,467 | 31,251 | 22,535 | 0.8% | ||||||
31,251 | 22,535 | 0.8% | |||||||||||
CIFC Funding 2016-I, Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 9.23%, due 10/21/2031)(5)(14) | 12/21/2016 | 34,000 | 30,149 | 26,028 | 0.9% | ||||||
30,149 | 26,028 | 0.9% | |||||||||||
Cinedigm DC Holdings, LLC | Entertainment | Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021)(11)(46) | 2/28/2013 | 12,205 | 12,155 | 12,205 | 0.4% | ||||||
12,155 | 12,205 | 0.4% | |||||||||||
Class Valuation, LLC | Real Estate Management & Development | Senior Secured Term Loan (9.75% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/10/2023)(3)(11) | 3/12/2018 | 38,222 | 38,222 | 38,222 | 1.3% | ||||||
38,222 | 38,222 | 1.3% | |||||||||||
Collections Acquisition Company, Inc. | Diversified Financial Services | Senior Secured Term Loan (10.15% (LIBOR + 7.65% with 2.50% LIBOR floor), due 6/3/2024)(3)(11) | 12/3/2019 | 30,216 | 30,216 | 30,216 | 1.0% | ||||||
30,216 | 30,216 | 1.0% | |||||||||||
See notes to consolidated financial statements.
14
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS AS OF MARCH 31, 2020 (Unaudited)
(in thousands, except share data)
March 31, 2020 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(51) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Columbia Cent CLO 27 Limited | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 13.12%, due 10/25/2028)(5)(14) | 1/15/2014 | $ | 40,275 | $ | 23,121 | $ | 20,941 | 0.7% | |||
23,121 | 20,941 | 0.7% | |||||||||||
Coverall North America, Inc. | Commercial Services & Supplies | Senior Secured Term Loan A (7.46% (LIBOR + 6.00% with 1.00% LIBOR floor), due 5/3/2021)(3)(11) | 11/2/2015 | 3,100 | 3,100 | 3,100 | 0.1% | ||||||
Senior Secured Term Loan B (12.46% (LIBOR + 11.00% with 1.00% LIBOR floor), due 5/3/2021)(3)(11) | 11/2/2015 | 22,750 | 22,750 | 22,750 | 0.8% | ||||||||
25,850 | 25,850 | 0.9% | |||||||||||
CP VI Bella Midco | IT Services | Second Lien Term Loan (7.74% (LIBOR + 6.75%), due 12/29/2025)(3)(8)(13) | 2/26/2018 | 15,750 | 15,709 | 15,750 | 0.5% | ||||||
15,709 | 15,750 | 0.5% | |||||||||||
Digital Room, LLC | Commercial Services & Supplies | First Lien Term Loan (6.45% (LIBOR + 5.00%), due 5/21/2026)(3)(8)(11) | 5/29/2019 | 25 | 25 | 24 | —% | ||||||
First Lien Term Loan (6.07% (LIBOR + 5.00%), due 5/21/2026)(3)(8)(13) | 5/29/2019 | 9,900 | 9,778 | 9,341 | 0.3% | ||||||||
Second Lien Term Loan (10.07% (LIBOR + 9.00%), due 5/21/2027)(3)(8)(53) | 5/30/2019 | 70,000 | 70,000 | 65,510 | 2.3% | ||||||||
79,803 | 74,875 | 2.6% | |||||||||||
Dunn Paper, Inc. | Paper & Forest Products | First Lien Term Loan (5.75% (LIBOR + 4.75% with 1.00% LIBOR floor), due 8/26/2022)(3)(8)(13) | 11/27/2019 | 4,488 | 4,382 | 4,363 | 0.1% | ||||||
Second Lien Term Loan (9.75% (LIBOR + 8.75% with 1.00% LIBOR floor), due 8/26/2023)(3)(8)(13) | 10/7/2016 | 11,500 | 11,387 | 11,122 | 0.4% | ||||||||
15,769 | 15,485 | 0.5% | |||||||||||
Easy Gardener Products, Inc. | Household Durables | Senior Secured Term Loan (11.46% (LIBOR + 10.00% with 0.25% LIBOR floor), in non-accrual status effective 10/1/2019, due 09/30/2020)(11)(16) | 10/2/2015 | 15,719 | 15,719 | 4,799 | 0.2% | ||||||
15,719 | 4,799 | 0.2% | |||||||||||
EDSCO Holding Company LLC | Machinery | Senior Secured Term Loan (7.50% (LIBOR + 6.00% with 1.50% LIBOR floor), due 1/10/2025)(3)(11) | 1/10/2020 | 20,000 | 20,000 | 20,000 | 0.7% | ||||||
20,000 | 20,000 | 0.7% | |||||||||||
Engine Group, Inc.(7) | Media | Senior Secured Term Loan (7.25% (PRIME + 4.00%), due 9/15/2022)(8)(54) | 9/25/2017 | 4,220 | 4,220 | 3,619 | 0.1% | ||||||
Second Lien Term Loan (11.25% (PRIME + 8.00%), due 9/15/2023)(3)(8)(54) | 9/25/2017 | 35,000 | 35,000 | 18,380 | 0.6% | ||||||||
39,220 | 21,999 | 0.7% | |||||||||||
EXC Holdings III Corp | Technology Hardware, Storage & Peripherals | Second Lien Term Loan (9.41% (LIBOR + 7.50% with 1.00% LIBOR floor), due 12/01/2025)(3)(8)(11) | 12/5/2017 | 12,500 | 12,411 | 11,851 | 0.4% | ||||||
12,411 | 11,851 | 0.4% | |||||||||||
Galaxy XV CLO, Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 9.66%, due 10/15/2030)(5)(14) | 3/14/2013 | 50,525 | 35,628 | 23,188 | 0.8% | ||||||
35,628 | 23,188 | 0.8% | |||||||||||
Galaxy XXVII CLO, Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 7.13%, due 5/16/2031)(5)(14) | 11/5/2013 | 24,575 | 16,437 | 10,938 | 0.4% | ||||||
16,437 | 10,938 | 0.4% | |||||||||||
Galaxy XXVIII CLO, Ltd. | Structured Finance | Subordinated Structured Note (Residual Interest, current yield 7.15%, due 7/15/2031)(5)(14) | 6/27/2014 | 39,905 | 28,629 | 16,178 | 0.6% | ||||||