| 10-Q | 2019-09-30 | Filed 2019-11-06 |
| 10-Q | 2019-06-30 | Filed 2019-08-07 |
| 10-Q | 2019-03-31 | Filed 2019-05-06 |
| 10-K | 2018-12-31 | Filed 2019-03-12 |
| 10-Q | 2018-09-30 | Filed 2018-11-06 |
| 10-Q | 2018-06-30 | Filed 2018-08-07 |
| 10-Q | 2018-03-31 | Filed 2018-05-07 |
| 10-K | 2017-12-31 | Filed 2018-03-14 |
| 10-Q | 2017-09-30 | Filed 2017-11-07 |
| 10-Q | 2017-06-30 | Filed 2017-08-04 |
| 10-Q | 2017-03-31 | Filed 2017-05-05 |
| 10-K | 2016-12-31 | Filed 2017-03-10 |
| 10-Q | 2016-09-30 | Filed 2016-11-04 |
| 10-Q | 2016-06-30 | Filed 2016-08-05 |
| 10-Q | 2016-03-31 | Filed 2016-05-06 |
| 10-K | 2015-12-31 | Filed 2016-03-09 |
| 10-Q | 2015-09-30 | Filed 2015-11-10 |
| 10-Q | 2015-06-30 | Filed 2015-08-11 |
| 10-Q | 2015-03-31 | Filed 2015-05-12 |
| 10-K | 2014-12-31 | Filed 2015-03-18 |
| 10-Q | 2014-09-30 | Filed 2014-11-10 |
| 10-Q | 2014-06-30 | Filed 2014-08-13 |
| 10-Q | 2014-03-31 | Filed 2014-06-19 |
| 8-K | 2020-01-31 | |
| 8-K | 2020-01-29 | |
| 8-K | 2020-01-07 | |
| 8-K | 2019-11-30 | |
| 8-K | 2019-11-05 | |
| 8-K | 2019-10-14 | |
| 8-K | 2019-08-12 | |
| 8-K | 2019-04-04 | |
| 8-K | 2019-03-11 | |
| 8-K | 2019-01-14 | |
| 8-K | 2018-12-11 | |
| 8-K | 2018-09-21 | |
| 8-K | 2018-09-16 | |
| 8-K | 2018-06-26 | |
| 8-K | 2018-06-19 | |
| 8-K | 2018-05-04 | |
| 8-K | 2018-01-04 |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Forward - Looking Statements |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk |
| Item 4. Controls and Procedures |
| Part II - Other Information |
| Item 1. Legal Proceedings |
| Item 1A. Risk Factors |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
| Item 3. Defaults Upon Senior Securities |
| Item 4. Mine Safety Disclosures |
| Item 5. Other Information |
| Item 6. Exhibits |
| EX-31.1 | tm1921757d1_ex31-1.htm |
| EX-31.2 | tm1921757d1_ex31-2.htm |
| EX-32.1 | tm1921757d1_ex32-1.htm |
| EX-32.2 | tm1921757d1_ex32-2.htm |
| Balance Sheet | Income Statement | Cash Flow |
|---|---|---|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2019
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
COMMISSION FILE NUMBER: 814-01064
ALCENTRA CAPITAL CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
| Maryland | 46-2961489 |
| (State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
| 200 Park Avenue, 7 th Floor | |
| New York, NY | 10166 |
| (Address of Principal Executive Offices) | (Zip Code) |
(212) 922-8240
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
| Common Stock, par value $0.001 per share | ABDC | The NASDAQ Global Select Market |
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 x No ¨
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 ¨ No ¨
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 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 | x |
| Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
| Emerging growth company | x |
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. x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
There were 12,875,566 shares of the Registrant’s common stock outstanding as of November 5, 2019.
ALCENTRA CAPITAL CORPORATION
TABLE OF CONTENTS
Alcentra Capital Corporation and Subsidiary
Consolidated Statements of Assets and Liabilities
| As of September 30, 2019 (Unaudited) | As of December 31, 2018 | |||||||
| Assets | ||||||||
| Portfolio investments, at fair value | ||||||||
| Non-controlled, non-affiliated investments, at fair value (cost of $212,247,572 and $212,280,172, respectively) | $ | 203,117,204 | $ | 205,411,779 | ||||
| Non-controlled, affiliated investments, at fair value (cost of $26,683,798 and $26,385,612, respectively) | 15,249,296 | 12,980,016 | ||||||
| Controlled, affiliated investments, at fair value (cost $0 and $15,212,562, respectively) | — | 16,406,021 | ||||||
| Cash | 4,830,119 | 11,049,499 | ||||||
| Dividends and interest receivable | 1,041,343 | 454,883 | ||||||
| Receivable for investments sold | 532,930 | 644,733 | ||||||
| Deferred financing costs | 909,289 | 1,366,393 | ||||||
| Deferred tax asset | 4,266,715 | 5,385,694 | ||||||
| Prepaid expenses and other assets | 253,559 | 79,410 | ||||||
| Total Assets | $ | 230,200,455 | $ | 253,778,428 | ||||
| Liabilities | ||||||||
| Credit facility payable | $ | 28,658,350 | $ | 28,536,441 | ||||
| Notes payable (net of deferred note offering costs of $550,159 and $855,433, respectively) | 54,449,841 | 54,144,567 | ||||||
| Payable for investments purchased | — | 18,550,000 | ||||||
| Other accrued expenses and liabilities | 90,121 | 535,096 | ||||||
| Directors’ fees payable | 225,750 | 36,125 | ||||||
| Professional fees payable | 1,071,304 | 554,173 | ||||||
| Interest and credit facility expense payable | 1,558,563 | 1,069,139 | ||||||
| Management fee payable | — | 765,659 | ||||||
| Income-based incentive fees payable | 198,805 | 890,796 | ||||||
| Distributions payable | 2,317,602 | 2,433,102 | ||||||
| Unearned structuring fee revenue | — | 81,643 | ||||||
| Income tax liability | 255,531 | 379,155 | ||||||
| Total Liabilities | 88,825,867 | 107,975,896 | ||||||
| Commitments and Contingencies (Note 12) | ||||||||
| Net Assets | ||||||||
| Common stock, par value $0.001 per share (100,000,000 shares authorized, 12,875,566 and 13,105,295 shares issued and outstanding, respectively) | 12,876 | 13,105 | ||||||
| Additional paid-in capital | 197,118,476 | 198,594,662 | ||||||
| Distributable earnings (accumulated loss) | (55,756,764 | ) | (52,805,235 | ) | ||||
| Total Net Assets | 141,374,588 | 145,802,532 | ||||||
| Total Liabilities and Net Assets | $ | 230,200,455 | $ | 253,778,428 | ||||
| Net Asset Value Per Share | $ | 10.98 | $ | 11.13 | ||||
See notes to unaudited consolidated financial statements
3
Alcentra Capital Corporation and Subsidiary
Consolidated Statements of Operations
| For the three months ended September 30, 2019 (Unaudited) | For the three months ended September 30, 2018 (Unaudited) | For the nine months ended September 30, 2019 (Unaudited) | For the nine months ended September 30, 2018 (Unaudited) | |||||||||||||
| Investment Income: | ||||||||||||||||
| From non-controlled, non-affiliated investments: | ||||||||||||||||
| Interest income from portfolio investments | $ | 5,386,714 | $ | 5,676,759 | $ | 16,946,112 | $ | 17,284,856 | ||||||||
| Paid-in-kind interest income from portfolio investments | 27,534 | 107,164 | 140,835 | 352,295 | ||||||||||||
| Other income from portfolio investments | 47,920 | 94,668 | 332,795 | 2,213,784 | ||||||||||||
| Dividend income from portfolio investments | — | 30,756 | — | 92,268 | ||||||||||||
| From non-controlled, affiliated investments: | ||||||||||||||||
| Interest income from portfolio investments | 32,418 | 58,881 | 110,659 | 265,414 | ||||||||||||
| Paid in-kind income from portfolio investments | 108,583 | 96,816 | 298,186 | 309,946 | ||||||||||||
| Other income from portfolio investments | — | — | — | — | ||||||||||||
| From controlled, affiliated investments: | ||||||||||||||||
| Interest income from portfolio investments | — | 488,036 | 208,538 | 1,470,032 | ||||||||||||
| Paid in-kind income from portfolio investments | — | — | — | — | ||||||||||||
| Other income from portfolio investments | — | — | 133,095 | — | ||||||||||||
| Total investment income | 5,603,169 | 6,553,080 | 18,170,220 | 21,988,595 | ||||||||||||
| Expenses: | ||||||||||||||||
| Management fees | 835,825 | 943,360 | 2,543,009 | 3,214,345 | ||||||||||||
| Income-based incentive fees/(reversal of accruals) | — | (43,805 | ) | (691,991 | ) | (43,805 | ) | |||||||||
| Professional fees | 1,411,837 | 362,625 | 2,811,452 | 1,095,777 | ||||||||||||
| Valuation services | (70,780 | ) | 78,346 | 86,720 | 132,279 | |||||||||||
| Interest and credit facility expense | 1,455,465 | 1,705,992 | 4,195,793 | 5,146,364 | ||||||||||||
| Amortization of deferred financing costs | 157,059 | 117,587 | 569,604 | 325,138 | ||||||||||||
| Directors’ fees | 213,270 | 87,076 | 587,946 | 300,104 | ||||||||||||
| Insurance expense | 93,524 | 57,076 | 240,851 | 169,583 | ||||||||||||
| Amortization of deferred note offering costs | 105,771 | 97,478 | 348,474 | 343,439 | ||||||||||||
| Consulting fees | — | 54,152 | 244,916 | 535,892 | ||||||||||||
| Excise tax | (62,468 | ) | 29,538 | 327,945 | 394,846 | |||||||||||
| Other expenses | 638,307 | 255,226 | 952,606 | 415,737 | ||||||||||||
| Total expenses | 4,777,810 | 3,744,651 | 12,217,325 | 12,029,699 | ||||||||||||
| Waiver of management fees | (835,825 | ) | (157,227 | ) | (1,120,356 | ) | (266,508 | ) | ||||||||
| Net expenses | 3,941,985 | 3,587,424 | 11,096,969 | 11,763,191 | ||||||||||||
| Net investment income and foreign currency transactions | 1,661,184 | 2,965,656 | 7,073,251 | 10,225,404 | ||||||||||||
| Realized Gain (Loss) and Net Change in Unrealized Appreciation (Depreciation) From Portfolio Investments | ||||||||||||||||
| Net realized gain (loss) on: | ||||||||||||||||
| Non-controlled, non-affiliated investments | — | (38,921 | ) | (111,717 | ) | (10,162,013 | ) | |||||||||
| Non-controlled, affiliated investments | — | (12 | ) | — | (10,167,529 | ) | ||||||||||
| Controlled, affiliated investments | — | — | 1,193,459 | — | ||||||||||||
| Foreign currency transactions | 109,732 | — | 175,226 | — | ||||||||||||
| Net realized gain (loss) from portfolio investments and foreign currency transactions | 109,732 | (38,933 | ) | 1,256,968 | (20,329,542 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Non-controlled, non-affiliated investments | (742,017 | ) | 2,355,583 | (2,261,975 | ) | 6,235,728 | ||||||||||
| Non-controlled, affiliated investments | 573,447 | (1,610,661 | ) | 1,971,094 | 7,601,872 | |||||||||||
| Controlled, affiliated investments | — | — | (1,193,459 | ) | 220,904 | |||||||||||
| Foreign currency translation | 148,596 | — | 136,968 | — | ||||||||||||
| Net change in unrealized appreciation (depreciation) from portfolio investments and foreign currency translation | (19,974 | ) | 744,922 | (1,347,372 | ) | 14,058,504 | ||||||||||
| Benefit (Provision) for income taxes on unrealized gain (loss) on investments | 3,253 | (589,643 | ) | (1,121,422 | ) | 427,585 | ||||||||||
| Net realized gain (loss) and net change in unrealized appreciation (depreciation) from portfolio investments | 93,011 | 116,346 | (1,211,826 | ) | (5,843,453 | ) | ||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,754,195 | $ | 3,082,002 | $ | 5,861,425 | $ | 4,381,951 | ||||||||
| Basic and diluted: | ||||||||||||||||
| Net investment income per share | $ | 0.13 | $ | 0.22 | $ | 0.55 | $ | 0.74 | ||||||||
| Earnings (loss) per share | $ | 0.14 | $ | 0.23 | $ | 0.45 | $ | 0.32 | ||||||||
| Weighted Average Shares of Common Stock Outstanding | 12,875,566 | 13,530,129 | 12,885,724 | 13,815,619 | ||||||||||||
See notes to unaudited consolidated financial statements
4
Alcentra Capital Corporation and Subsidiary
Consolidated Statements of Changes in Net Assets
(Unaudited)
| Common Stock | ||||||||||||||||||||
| Shares | Par Amount | Paid in Capital in Excess of Par | Distributable Earnings | Total Net Assets | ||||||||||||||||
| Balance at June 30, 2018 | 13,582,751 | $ | 13,583 | $ | 202,161,682 | $ | (52,580,521 | ) | $ | 149,594,744 | ||||||||||
| Increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
| Net investment income | — | — | — | 2,965,656 | 2,965,656 | |||||||||||||||
| Net realized gain (loss) on investments and foreign currency transactions | — | — | — | (38,933 | ) | (38,933 | ) | |||||||||||||
| Net change in unrealized appreciation/(depreciation) on investments and foreign currency translation | — | — | — | 744,922 | 744,922 | |||||||||||||||
| Benefit (Provision) for income taxes on unrealized gain (loss) on investments | — | — | — | (589,643 | ) | (589,643 | ) | |||||||||||||
| Shareholder distributions: | ||||||||||||||||||||
| Repurchase of common stock | (65,517 | ) | (66 | ) | (413,275 | ) | — | (413,341 | ) | |||||||||||
| Distributions to shareholders | — | — | — | (2,449,592 | ) | (2,449,592 | ) | |||||||||||||
| Total increase (decrease) for the three months ended September 30, 2018 | (65,517 | ) | (66 | ) | (413,275 | ) | 632,410 | 219,069 | ||||||||||||
| Balance at September 30, 2018 | 13,517,234 | $ | 13,517 | $ | 201,748,407 | $ | (51,948,111 | ) | $ | 149,813,813 | ||||||||||
| Dividends declared per common share | — | $ | — | $ | — | $ | 0.18 | $ | 0.18 | |||||||||||
| Balance at December 31, 2017 | 14,222,945 | $ | 14,223 | $ | 206,570,701 | $ | (48,870,749 | ) | $ | 157,714,175 | ||||||||||
| Increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
| Net investment income | — | — | — | 10,225,404 | 10,225,404 | |||||||||||||||
| Net realized gain (loss) on investments and foreign currency transactions | — | — | — | (20,329,542 | ) | (20,329,542 | ) | |||||||||||||
| Net change in unrealized appreciation/(depreciation) on investments and foreign currency translation | — | — | — | 14,058,504 | 14,058,504 | |||||||||||||||
| Benefit (Provision) for income taxes on unrealized gain (loss) on investments | — | — | — | 427,585 | 427,585 | |||||||||||||||
| Shareholder distributions: | ||||||||||||||||||||
| Repurchase of common stock | (705,711 | ) | (706 | ) | (4,822,294 | ) | — | (4,823,000 | ) | |||||||||||
| Distributions to shareholders | — | — | — | (7,459,313 | ) | (7,459,313 | ) | |||||||||||||
| Total increase (decrease) for the nine months ended September 30, 2018 | (705,711 | ) | (706 | ) | (4,822,294 | ) | (3,077,362 | ) | (7,900,362 | ) | ||||||||||
| Balance at September 30, 2018 | 13,517,234 | $ | 13,517 | $ | 201,748,407 | $ | (51,948,111 | ) | $ | 149,813,813 | ||||||||||
| Dividends declared per common share | — | $ | — | $ | — | $ | 0.54 | $ | 0.54 | |||||||||||
See notes to unaudited consolidated financial statements
5
Alcentra Capital Corporation and Subsidiary
Consolidated Statements of Changes in Net Assets
(Unaudited)
| Common Stock | ||||||||||||||||||||
| Shares | Par Amount | Paid in Capital in Excess of Par | Distributable Earnings | Total Net Assets | ||||||||||||||||
| Balance at June 30, 2019 | 12,875,566 | $ | 12,876 | $ | 197,118,476 | $ | (55,193,357 | ) | $ | 141,937,995 | ||||||||||
| Increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
| Net investment income | — | — | — | 1,661,184 | 1,661,184 | |||||||||||||||
| Net realized gain (loss) on investments and foreign currency transactions | — | — | — | 109,732 | 109,732 | |||||||||||||||
| Net change in unrealized appreciation/(depreciation) on investments and foreign currency translation | — | — | — | (19,974 | ) | (19,974 | ) | |||||||||||||
| Benefit (Provision) for income taxes on unrealized gain (loss) on investments | — | — | — | 3,253 | 3,253 | |||||||||||||||
| Shareholder distributions: | ||||||||||||||||||||
| Repurchase of common stock | — | — | — | — | — | |||||||||||||||
| Distributions to shareholders | — | — | — | (2,317,602 | ) | (2,317,602 | ) | |||||||||||||
| Total increase (decrease) for the three months ended September 30, 2019 | — | — | — | (563,407 | ) | (563,407 | ) | |||||||||||||
| Balance at September 30, 2019 | 12,875,566 | $ | 12,876 | $ | 197,118,476 | $ | (55,756,764 | ) | $ | 141,374,588 | ||||||||||
| Dividends declared per common share | — | $ | — | $ | — | $ | 0.18 | $ | 0.18 | |||||||||||
| Balance at December 31, 2018 | 13,105,295 | $ | 13,105 | $ | 198,594,662 | $ | (52,805,235 | ) | $ | 145,802,532 | ||||||||||
| Increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
| Net investment income | — | — | — | 7,073,251 | 7,073,251 | |||||||||||||||
| Net realized gain (loss) on investments and foreign currency transactions | — | — | — | 1,256,968 | 1,256,968 | |||||||||||||||
| Net change in unrealized appreciation/(depreciation) on investments and foreign currency translation | — | — | — | (1,347,372 | ) | (1,347,372 | ) | |||||||||||||
| Benefit (Provision) for income taxes on unrealized gain (loss) on investments | — | — | — | (1,121,422 | ) | (1,121,422 | ) | |||||||||||||
| Shareholder distributions: | ||||||||||||||||||||
| Repurchase of common stock | (229,729 | ) | (229 | ) | (1,476,186 | ) | — | (1,476,415 | ) | |||||||||||
| Distributions to shareholders | — | — | — | (8,812,954 | ) | (8,812,954 | ) | |||||||||||||
| Total increase (decrease) for the nine months ended September 30, 2019 | (229,729 | ) | (229 | ) | (1,476,186 | ) | (2,951,529 | ) | (4,427,944 | ) | ||||||||||
| Balance at September 30, 2019 | 12,875,566 | $ | 12,876 | $ | 197,118,476 | $ | (55,756,764 | ) | $ | 141,374,588 | ||||||||||
| Dividends declared per common share | — | $ | — | $ | — | $ | 0.69 | $ | 0.69 | |||||||||||
See notes to unaudited consolidated financial statements
6
Alcentra Capital Corporation and Subsidiary
Consolidated Statements of Cash Flows
| For the nine months ended September 30, 2019 (Unaudited) | For the nine months ended September 30, 2018 (Unaudited) | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net increase/(decrease) in net assets resulting from operations | $ | 5,861,425 | $ | 4,381,951 | ||||
| Adjustments to reconcile net increase/(decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||||||
| Net realized (gain) loss from portfolio investments | (1,081,742 | ) | 20,329,542 | |||||
| Net change in unrealized (appreciation) depreciation of portfolio investments | 1,484,340 | (14,058,504 | ) | |||||
| Deferred tax asset | 1,118,979 | (430,507 | ) | |||||
| Paid in-kind interest income from portfolio investments | (439,021 | ) | (662,241 | ) | ||||
| Accretion of discount on debt securities | (1,120,276 | ) | (481,690 | ) | ||||
| Purchases of portfolio investments | (61,229,802 | ) | (50,049,494 | ) | ||||
| Net proceeds from sales/return of capital of portfolio investments | 78,817,817 | 83,839,981 | ||||||
| Amortization of deferred financing costs | 569,604 | 325,138 | ||||||
| Amortization of deferred note offering costs | 348,474 | 343,439 | ||||||
| (Increase) decrease in operating assets: | ||||||||
| Dividends and interest receivable | (586,460 | ) | 541,594 | |||||
| Receivable for investments sold | 111,803 | 25,000 | ||||||
| Income tax asset | — | 133,627 | ||||||
| Prepaid expenses and other assets | (174,149 | ) | (64,981 | ) | ||||
| Increase (decrease) in operating liabilities: | ||||||||
| Payable for investments purchased | (18,550,000 | ) | — | |||||
| Other accrued expenses and liabilities | (444,975 | ) | (76,145 | ) | ||||
| Directors' fees payable | 189,625 | 9,583 | ||||||
| Professional fees payable | 517,131 | (229,950 | ) | |||||
| Interest and credit facility expense payable | 489,424 | 93,737 | ||||||
| Management fee payable | (765,659 | ) | 447,802 | |||||
| Income-based incentive fees payable | (691,991 | ) | (43,805 | ) | ||||
| Unearned structuring fee revenue | (81,643 | ) | (450,633 | ) | ||||
| Income tax liability | (123,624 | ) | — | |||||
| Net cash provided by (used in) operating activities | 4,219,280 | 43,923,444 | ||||||
| Cash Flows from Financing Activities | ||||||||
| Financing costs paid | (112,500 | ) | (1,332,500 | ) | ||||
| Offering costs paid | (43,200 | ) | (42,000 | ) | ||||
| Proceeds from credit facility payable | 54,805,298 | 26,253,872 | ||||||
| Repayments of credit facility payable | (54,820,357 | ) | (61,500,000 | ) | ||||
| Distributions paid to shareholders | (8,928,454 | ) | (8,571,027 | ) | ||||
| Repurchase of common stock | (1,476,415 | ) | (4,823,000 | ) | ||||
| Net cash provided by (used in) financing activities | (10,575,628 | ) | (50,014,655 | ) | ||||
| Effect of exchange rate changes on cash denominated in foreign currency | 136,968 | — | ||||||
| Increase (decrease) in cash and cash equivalents | (6,219,380 | ) | (6,091,211 | ) | ||||
| Cash at beginning of period | 11,049,499 | 13,882,956 | ||||||
| Cash and Cash Equivalents at End of Period | $ | 4,830,119 | $ | 7,791,745 | ||||
| Supplemental and non-cash financing activities: | ||||||||
| Cash paid during the period for interest | $ | 3,706,369 | $ | 5,052,627 | ||||
| Accrued offering costs | $ | 2,485 | $ | 2,485 | ||||
| Accrued distributions payable | $ | 2,317,602 | $ | 2,449,591 | ||||
See notes to unaudited consolidated financial statements
7
Alcentra Capital Corporation and Subsidiary
Consolidated Schedule of Investments
As of September 30, 2019
(Unaudited)
| Company(+) *** | Industry | Spread Above Index | Base Rate Floor | Interest Rate | Maturity Date | No. Shares/ Principal Amount | Cost(1) | Fair Value | % of Net Assets | |||||||||||||||||||||
| Investments in Non-Controlled, Non-Affiliated Portfolio Companies — 143.67% | ||||||||||||||||||||||||||||||
| Senior Secured - First Lien — 94.73% | ||||||||||||||||||||||||||||||
| Aegis Sciences Corporation (2),(3) | Consumer Services | LIBOR + 5.50% | 1.00 | % | 7.68 | % | 5/9/2025 | 7,422,519 | $ | 7,267,806 | $ | 7,107,062 | 5.03 | % | ||||||||||||||||
| Black Diamond Oilfield Rentals, LLC (2),(4) | Oil & Gas Services | LIBOR + 6.50% | 1.00 | % | 8.82 | % | 12/17/2020 | 10,670,863 | 10,670,863 | 10,670,863 | 7.55 | % | ||||||||||||||||||
| Cambium Learning Group, Inc. (2),(4) | Technology & Telecom | LIBOR + 4.50% | 6.61 | % | 12/18/2025 | 1,980,025 | 1,891,006 | 1,953,000 | 1.38 | % | ||||||||||||||||||||
| CGGR Operations Holdings Corporation (2),(4),(5) | Business Services | LIBOR + 7.00% | 1.00 | % | 9.32 | % | 9/30/2022 | 3,081,471 | 3,062,949 | 3,081,471 | 2.18 | % | ||||||||||||||||||
| Clanwilliam Group Ltd. (2),(4),(6) | Technology & Telecom | Euribor + 7.00% | 7.00 | % | 11/8/2025 | € | 5,922,000 | 6,576,416 | 6,456,163 | 4.57 | % | |||||||||||||||||||
| Digital Room Holdings, Inc. (2),(4) | Business Services | LIBOR + 5.00% | 7.11 | % | 5/21/2026 | 6,982,500 | 6,882,449 | 6,883,000 | 4.87 | % | ||||||||||||||||||||
| Envocore Holding, LLC (2),(4),(7) | Industrial Services | LIBOR + 10.25% | 1.00 | % | 12.57 | % | 6/30/2022 | 17,694,444 | 17,659,366 | 16,102,000 | 11.39 | % | ||||||||||||||||||
| Epic Healthcare Staffing Intermediate Holdco, LLC (2),(4),(6),(8) | Business Services | LIBOR + 8.25% | 1.00 | % | 10.57 | % | 10/19/2022 | 10,771,646 | 10,741,574 | 10,771,646 | 7.62 | % | ||||||||||||||||||
| GGC Aperio Holdings, L.P. (2),(4) | Financial Services | LIBOR + 5.00% | 7.33 | % | 10/26/2024 | 8,470,000 | 8,082,826 | 8,470,000 | 5.99 | % | ||||||||||||||||||||
| Healthcare Associates of Texas, LLC (2),(4),(6) | Healthcare Services | LIBOR + 8.25% | 1.00 | % | 10.57 | % | 11/8/2022 | 20,319,475 | 20,319,474 | 19,797,088 | 14.00 | % | ||||||||||||||||||
| Impact Group, LLC (2),(4) | Consumer Services | LIBOR + 6.50% | 1.00 | % | 8.83 | % | 6/27/2023 | 13,868,647 | 13,824,033 | 13,371,481 | 9.46 | % | ||||||||||||||||||
| Institutional Shareholder Services, Inc. (2),(4) | Business Services | LIBOR + 4.50% | 6.83 | % | 3/5/2026 | 2,985,000 | 2,957,446 | 2,957,000 | 2.09 | % | ||||||||||||||||||||
| Manna Pro Products, LLC (2),(4),(6) | Consumer Services | LIBOR + 6.00% | 1.00 | % | 8.11 | % | 12/8/2023 | 7,386,039 | 7,315,460 | 7,310,000 | 5.16 | % | ||||||||||||||||||
| Palmetto Moon LLC (4) | Retail | 11.5% Cash, 2.5% PIK | 14.00 | % | 10/31/2021 | 4,356,153 | 4,343,106 | 4,225,000 | 2.99 | % | ||||||||||||||||||||
| Perforce Software Inc. (2),(3) | High Tech Industries | LIBOR + 4.50% | 6.61 | % | 7/1/2026 | 5,000,000 | 4,975,844 | 4,995,000 | 3.53 | % | ||||||||||||||||||||
| Pinstripe Holdings, LLC (2),(4) | Business Services | LIBOR + 6.00% | 1.00 | % | 8.12 | % | 1/17/2025 | 9,950,000 | 9,772,785 | 9,778,000 | 6.92 | % | ||||||||||||||||||
| Total Senior Secured - First Lien | 136,343,403 | 133,928,774 | 94.73 | % | ||||||||||||||||||||||||||
| Senior Secured - Second Lien — 46.27% | ||||||||||||||||||||||||||||||
| BayMark Health Services, Inc. (2),(4),(6) | Healthcare Services | LIBOR + 8.25% | 1.00 | % | 10.21 | % | 3/1/2025 | 8,000,000 | $ | 7,897,541 | $ | 8,000,000 | 5.66 | % | ||||||||||||||||
See notes to unaudited consolidated financial statements
8
Alcentra Capital Corporation and Subsidiary
Consolidated Schedule of Investments (continued)
As of September 30, 2019
(Unaudited)
| Company(+) *** | Industry | Spread Above Index | Base Rate Floor | Interest Rate | Maturity Date | No. Shares/ Principal Amount | Cost(1) | Fair Value | % of Net Assets | |||||||||||||||||||||
| Cambium Learning Group, Inc. (2),(4) | Technology & Telecom | LIBOR + 8.50% | 10.61 | % | 12/18/2026 | 5,000,000 | $ | 4,716,452 | $ | 4,726,000 | 3.34 | % | ||||||||||||||||||
| CGGR Operations Holdings Corporation (2),(4),(5) | Business Services | LIBOR + 11.50% | 1.00 | % | 13.82 | % | 9/30/2023 | 11,431,579 | 11,355,258 | 11,545,895 | 8.17 | % | ||||||||||||||||||
| Institutional Shareholder Services, Inc. (2),(4) | Business Services | LIBOR + 8.50% | 10.83 | % | 3/5/2027 | 2,000,000 | 1,944,135 | 1,944,000 | 1.37 | % | ||||||||||||||||||||
| Medsurant Holdings, LLC (4) | High Tech Industries | 13.00% Cash | 13.00 | % | 6/30/2020 | 8,729,395 | 8,715,273 | 8,729,395 | 6.17 | % | ||||||||||||||||||||
| Perforce Software Inc. (2),(4) | High Tech Industries | LIBOR + 8.00% | 10.10 | % | 7/1/2027 | 5,000,000 | 4,854,716 | 4,952,000 | 3.50 | % | ||||||||||||||||||||
| Pharmalogic Holdings Corp. (2),(4) | Healthcare Services | LIBOR + 8.00% | 10.11 | % | 12/11/2023 | 16,100,000 | 16,038,335 | 16,100,000 | 11.39 | % | ||||||||||||||||||||
| Sandvine Corporation (2),(4) | Telecommunications | LIBOR + 8.00% | 10.11 | % | 11/2/2026 | 4,500,000 | 4,416,909 | 4,420,000 | 3.13 | % | ||||||||||||||||||||
| WeddingWire, Inc. (2),(4) | Consumer Services | LIBOR + 8.25% | 10.36 | % | 12/21/2026 | 5,000,000 | 4,953,109 | 5,000,000 | 3.54 | % | ||||||||||||||||||||
| Total Senior Secured - Second Lien | 64,891,728 | 65,417,290 | 46.27 | % | ||||||||||||||||||||||||||
| CLO/Structured Credit — 1.27% | ||||||||||||||||||||||||||||||
| Goldentree Loan Management US CLO 2 Ltd. (2),(3) | USD CLO | LIBOR + 4.70% | 7.06 | % | 11/28/2030 | 2,000,000 | $ | 1,950,823 | $ | 1,793,140 | 1.27 | % | ||||||||||||||||||
| Total CLO/Structured Credit | 1,950,823 | 1,793,140 | 1.27 | % | ||||||||||||||||||||||||||
| Equity/Other — 1.40% | ||||||||||||||||||||||||||||||
| Envocore Holding, LLC, Preferred Shares(4),(7),(9) | Industrial Services | 1,139,725 | $ | 1,160,360 | $ | — | — | |||||||||||||||||||||||
| IGT, Preferred Shares(4),(9) | Industrial Services | 11% PIK | 11.00 | % | 12/10/2024 | 1,110,922 | 1,110,922 | — | — | |||||||||||||||||||||
| Common Shares(4),(9) | 44,000 | 44,000 | — | — | ||||||||||||||||||||||||||
| Preferred AA Shares(4),(9) | 15% PIK | 15.00 | % | 12/10/2024 | 326,789 | 326,790 | 271,000 | 0.19 | % | |||||||||||||||||||||
| 1,481,712 | 271,000 | 0.19 | % | |||||||||||||||||||||||||||
| Metal Powder Products, LLC, Common Shares(4),(9) | Industrial Manufacturing | 500,000 | 500,000 | 602,000 | 0.43 | % | ||||||||||||||||||||||||
| My Alarm Center, LLC, Common Shares(4),(9) | Security | 129,582 | 256,793 | — | — | |||||||||||||||||||||||||
| Junior Preferred Shares(4),(9) | 2,420 | 2,366,549 | — | — | ||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements
9
Alcentra Capital Corporation and Subsidiary
Consolidated Schedule of Investments (continued)
As of September 30, 2019
(Unaudited)
| Company(+) *** | Industry | Spread Above Index | Base Rate Floor | Interest Rate | Maturity Date | No. Shares/ Principal Amount | Cost(1) | Fair Value | % of Net Assets | |||||||||||||||||||||
| Senior Preferred Shares(4),(9) | 8% PIK | 8.00 | % | 7/14/2022 | 2,998 | $ | 2,862,059 | $ | 1,024,000 | 0.72 | % | |||||||||||||||||||
| 5,485,401 | 1,024,000 | 0.72 | % | |||||||||||||||||||||||||||
| Palmetto Moon LLC, Common Shares(4),(9) | Retail | 61 | 434,145 | 81,000 | 0.06 | % | ||||||||||||||||||||||||
| Total Equity/Other | 9,061,618 | 1,978,000 | 1.40 | % | ||||||||||||||||||||||||||
| Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies | 212,247,572 | 203,117,204 | 143.67 | % | ||||||||||||||||||||||||||
| Investments in Non-Controlled, Affiliated Portfolio Companies — 10.79%* | ||||||||||||||||||||||||||||||
| Senior Subordinated — 0.87% | ||||||||||||||||||||||||||||||
| Battery Solutions, Inc. (4) | Environmental/Recycling Services | 12% Cash, 2% PIK | 14.00 | % | 11/6/2021 | 1,231,291 | $ | 1,231,291 | $ | 1,231,292 | 0.87 | % | ||||||||||||||||||
| Southern Technical Institute, Inc. (4),(9) | Education | 6% PIK | 6.00 | % | 12/31/2021 | 3,528,988 | 3,528,988 | — | — | |||||||||||||||||||||
| Total Senior Subordinated | 4,760,279 | 1,231,292 | 0.87 | % | ||||||||||||||||||||||||||
| Equity/Other — 9.92% | ||||||||||||||||||||||||||||||
| Battery Solutions, Inc., Class A Units(4),(9),(10) | Environmental/Recycling Services | 5,000,000 | $ | 1,058,000 | $ | — | — | |||||||||||||||||||||||
| Class E Units(4) | 8% PIK | 8.00 | % | 11/6/2021 | 4,766,685 | 4,766,685 | 4,067,003 | 2.88 | % | |||||||||||||||||||||
| Class F Units(4),(9) | 3,333,333 | — | — | — | ||||||||||||||||||||||||||
| 5,824,685 | 4,067,003 | 2.88 | % | |||||||||||||||||||||||||||
| Conisus, LLC, Common Shares(4),(9) | Media: Advertising, Printing & Publishing | 4,914,556 | — | — | — | |||||||||||||||||||||||||
| Preferred Equity(4) | 12% PIK | 12.00 | % | 12,677,834 | 12,677,834 | 9,119,001 | 6.45 | % | ||||||||||||||||||||||
| 12,677,834 | 9,119,001 | 6.45 | % | |||||||||||||||||||||||||||
| Southern Technical Institute, Inc., Class A Units(4),(9) | Education | 3,164,063 | 2,167,000 | — | — | |||||||||||||||||||||||||
| Class A1 Units(4),(9),(11) | 6,000,000 | — | — | — | ||||||||||||||||||||||||||
| 2,167,000 | — | — | ||||||||||||||||||||||||||||
| Xpress Global Systems, LLC, Class B Units (4),(9) | Transportation Logistics | 12,544 | 1,254,000 | 832,000 | 0.59 | % | ||||||||||||||||||||||||
| Total Equity/Other | 21,923,519 | 14,018,004 | 9.92 | % | ||||||||||||||||||||||||||
| Total Investments in Non-Controlled, Affiliated Portfolio Companies | 26,683,798 | 15,249,296 | 10.79 | % | ||||||||||||||||||||||||||
| Total Investments | 238,931,370 | 218,366,500 | 154.46 | % | ||||||||||||||||||||||||||
| Liabilities In Excess Of Other Assets | (76,991,912 | ) | (54.46 | %) | ||||||||||||||||||||||||||
| Net Assets | $ | 141,374,588 | 100.00 | % | ||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements
10
Alcentra Capital Corporation and Subsidiary
Consolidated Schedule of Investments (continued)
As of September 30, 2019
(Unaudited)
| (+) | All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), with the exception of the Company’s investments in Goldentree Loan Management US CLO 2 Ltd., Clanwilliam Group Ltd., and CGGR Operations Holdings Corporation. As of September 30, 2019, non-qualifying assets represented 10.5% of the Company’s total assets, at fair value. |
| * | Denotes investments in connection with which the Company is deemed to be an “Affiliated Person” under the 1940 Act because it owns 5% or more of the portfolio company’s outstanding voting securities. Transactions as of and during the nine months ended September 30, 2019 in which the issuer was an Affiliated Person (but not a portfolio company that the Company is deemed to Control) are as follows: |
| Gross | Change in | |||||||||||||||||||||||||||
| Fair Value at | Additions/ | Unrealized | Fair Value at | Interest/ | ||||||||||||||||||||||||
| December 31, | (Gross | Transfers | Appreciation | Realized | September 30 | Dividend/ | ||||||||||||||||||||||
| Name of Issuers | 2018 | Reductions) | In/Out | (Depreciation) | Gain (Loss) | 2019 | Other Income | |||||||||||||||||||||
| Battery Solutions, Inc. | $ | 5,699,791 | $ | 298,186 | $ | - | $ | (699,682 | ) | $ | - | $ | 5,298,295 | $ | 408,845 | |||||||||||||
| Conisus, LLC | 6,554,225 | - | - | 2,564,776 | - | 9,119,001 | - | |||||||||||||||||||||
| Southern Technical Institute, Inc. | - | - | - | - | - | - | - | |||||||||||||||||||||
| Xpress Global Systems, LLC | 726,000 | - | - | 106,000 | - | 832,000 | - | |||||||||||||||||||||
| $ | 12,980,016 | $ | 298,186 | $ | - | $ | 1,971,094 | $ | - | $ | 15,249,296 | $ | 408,845 | |||||||||||||||
| ** |
As of September 30, 2019, the Company was not deemed, under the 1940 Act, to "Control" any of its portfolio companies due to owning more than 25% of any such portfolio company's outstanding voting securities or because the Company had the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions during the nine months ended September 30, 2019 in which the issuer was deemed to be Controlled by the Company are as follows: |
| Gross | Change in | |||||||||||||||||||||||||||
| Fair Value at | Additions/ | Unrealized | Fair Value at | Interest/ | ||||||||||||||||||||||||
| December 31, | (Gross | Transfers | Appreciation | Realized | September 30 | Dividend/ | ||||||||||||||||||||||
| Name of Issuers | 2018 | Reductions) | In/Out | (Depreciation) | Gain (Loss) | 2019 | Other Income | |||||||||||||||||||||
| FST Technical Services, LLC(a) | $ | 16,406,021 | $ | (16,406,021 | ) | $ | - | $ | (1,193,459 | ) | $ | 1,193,459 | $ | - | $ | 341,633 | ||||||||||||
| $ | 16,406,021 | $ | (16,406,021 | ) | $ | - | $ | (1,193,459 | ) | $ | 1,193,459 | $ | - | $ | 341,633 | |||||||||||||
(a) FST Technical Services, LLC was sold on February 8, 2019.
| *** | Pledged as collateral under the Credit Facility with ING Capital LLC. |
| (1) | The cost of debt securities is adjusted for accretion of discount/amortization of premium and interest paid-in-kind on such securities. |
| (2) | The principal balance outstanding for all floating rate loans is indexed to LIBOR, Euribor or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR based on each respective credit agreement. |
| (3) | Security is classified as Level 2 in the Company’s fair value hierarchy (see Note 3). |
| (4) | Security is classified as Level 3 in the Company’s fair value hierarchy (see Note 3). |
| (5) | CGGR Holdings’ Tranche B Loan was reclassified to a second lien investment as a result of a sale of a portion of the Tranche A Loan to an unaffiliated third party. |
| (6) | The investment has an unfunded commitment as of September 30, 2019 which is excluded from the presentation (see Note 12). |
| (7) | The investment was formerly known as LRI Holding, Inc. and Integrated Efficiency Solutions, Inc. On March 16, 2018, the name was changed to Envocore Holding, LLC. |
| (8) | The investment was formerly known as Cirrus Medical Staffing, Inc. On May 25, 2018, the name was changed to Epic Healthcare Staffing Intermediate Holdco, LLC. |
| (9) | Non-income producing security. |
| (10) | The Company has represented its ownership in Class A units in 919 BSI SPV, LLC (70.7% of that entity), which in turn owns 70,700 Class A Shares of Battery Solutions, LLC (representing 18.16% of ownership of Battery Solutions, LLC). |
| (11) | Class A1 units of 1,764,720 are subject to a deferred purchase agreement equal to 95% of future proceeds less $1.00. |
| Abbreviation Legend | |
| LIBOR - | London Inter-bank Offered Rate |
| PIK - | Payment-In-Kind |
See notes to unaudited consolidated financial statements
11
Alcentra Capital Corporation and Subsidiary
Consolidated Schedule of Investments
As of December 31, 2018
| Company(+)*** | Industry | Spread Above Index | Base Rate Floor | Interest Rate | Maturity Date | No. Shares/ Principal Amount | Cost(1) | Fair Value | % of Net Assets | |||||||||||||||||||||
| Investments in Non-Controlled, Non-Affiliated Portfolio Companies — 140.89% | ||||||||||||||||||||||||||||||
| Senior Secured – First Lien — 106.14% | ||||||||||||||||||||||||||||||
| Black Diamond Oilfield Rentals, LLC(2),(3),(15) | Oil & Gas Services | LIBOR + 6.50% | 1.00 | % | 8.90 | % | 12/17/2020 | 11,385,109 | $ | 11,385,109 | $ | 11,382,254 | 7.81 | % | ||||||||||||||||
| Cambium Learning Group, Inc.(3),(10) | Technology & Telecom | LIBOR + 4.50% | 7.31 | % | 12/18/2025 | 4,000,000 | 3,800,000 | 3,800,000 | 2.61 | % | ||||||||||||||||||||
| CGGR Operations Holdings Corporation(2),(3),(8) | Business Services | LIBOR + 11.5% | 1.00 | % | 13.90 | % | 9/30/2023 | 13,431,579 | 13,324,053 | 13,431,579 | 9.21 | % | ||||||||||||||||||
| LIBOR + 7.0% | 1.00 | % | 9.40 | % | 9/30/2022 | 9,468,421 | 9,397,345 | 9,468,421 | 6.49 | % | ||||||||||||||||||||
| 22,721,398 | 22,900,000 | 15.70 | % | |||||||||||||||||||||||||||
| Champion ONE(2),(3) | Technology & Telecom | LIBOR + 10.5% | 1.00 | % | 12.90 | % | 3/17/2022 | 5,884,230 | 5,842,683 | 5,884,230 | 4.04 | % | ||||||||||||||||||
| Clanwilliam Group Ltd.(2),(3),(8) | Technology & Telecom | Euribor + 7.00% | 7.00 | % | 11/8/2025 | € | 5,724,000 | 6,344,310 | 6,347,088 | 4.35 | % | |||||||||||||||||||
| Envocore Holding, LLC(2),(3),(7) | Industrial Services | LIBOR + 9.25% | 1.00 | % | 11.65 | % | 6/30/2022 | 18,500,000 | 18,453,344 | 18,500,000 | 12.69 | % | ||||||||||||||||||
| Epic Healthcare Staffing Intermediate Holdco, LLC(2),(3),(8),(9) | Business Services | LIBOR + 8.25% | 1.00 | % | 10.65 | % | 10/19/2022 | 13,430,114 | 13,392,406 | 13,430,114 | 9.21 | % | ||||||||||||||||||
| Healthcare Associates of Texas, LLC(2),(3),(8) | Healthcare Services | LIBOR + 8.0% | 1.00 | % | 10.40 | % | 11/8/2022 | 20,578,816 | 20,578,816 | 20,578,816 | 14.11 | % | ||||||||||||||||||
| Impact Group, LLC(2),(3) | Consumer Services | LIBOR + 6.50% | 1.00 | % | 9.21 | % | 6/27/2023 | 19,965,214 | 19,965,214 | 19,965,214 | 13.69 | % | ||||||||||||||||||
| Lugano Diamonds & Jewelry, Inc.(2),(3) | Retail | LIBOR + 10.00% | 0.75 | % | 12.40 | % | 10/24/2021 | 6,750,000 | 6,229,503 | 6,365,358 | 4.37 | % | ||||||||||||||||||
| Manna Pro Products, LLC(2),(3),(8) | Consumer Services | LIBOR + 6.0% | 1.00 | % | 8.31 | % | 12/8/2023 | 1,322,485 | 1,316,153 | 1,322,485 | 0.91 | % | ||||||||||||||||||
| Palmetto Moon LLC(2) | Retail | 11.5% Cash, 1.0% PIK | 12.50 | % | 10/31/2021 | 4,737,622 | 4,720,936 | 4,648,350 | 3.19 | % | ||||||||||||||||||||
| Pinstripe Holdings, LLC(2),(3) | Business Services | LIBOR + 6.00% | 8.81 | % | 1/17/2025 | 10,000,000 | 9,800,000 | 9,800,000 | 6.72 | % | ||||||||||||||||||||
| Superior Controls, Inc.(2),(3),(8) | Wholesale/ Distribution | LIBOR + 7.25% | 1.00 | % | 9.65 | % | 3/22/2021 | 9,825,000 | 9,789,394 | 9,825,000 | 6.74 | % | ||||||||||||||||||
| Total Senior Secured – First Lien | 154,339,266 | 154,748,909 | 106.14 | % | ||||||||||||||||||||||||||
| Senior Secured – Second Lien — 29.18% | ||||||||||||||||||||||||||||||
| BayMark Health Services, Inc.(2),(3) | Healthcare Services | LIBOR + 8.25% | 1.00 | % | 10.60 | % | 3/1/2025 | 7,000,000 | 6,938,172 | 7,000,000 | 4.80 | % | ||||||||||||||||||
| Medsurant Holdings, LLC(2) | High Tech Industries | 13.00% Cash | 13.00 | % | 6/30/2020 | 8,729,396 | 8,701,223 | 8,729,396 | 5.99 | % | ||||||||||||||||||||
| Pharmalogic Holdings Corp.(2),(3),(8) | Healthcare Services | LIBOR + 8.0% | 10.34 | % | 12/11/2023 | 11,340,000 | 11,267,485 | 11,340,000 | 7.77 | % | ||||||||||||||||||||
| Sandvine Corporation(2),(3) | Telecommunications | LIBOR + 8.00% | 10.35 | % | 11/2/2026 | 4,500,000 | 4,410,000 | 4,410,000 | 3.02 | % | ||||||||||||||||||||
| VVC Holding Corp.(2),(3),(5) | Healthcare Services | LIBOR + 8.13% | 1.00 | % | 10.56 | % | 7/9/2026 | 6,000,000 | 5,943,433 | 6,120,000 | 4.20 | % | ||||||||||||||||||
| WeddingWire, Inc.(2),(3) | Consumer Services | LIBOR + 8.25% | 11.06 | % | 12/21/2026 | 5,000,000 | 4,950,000 | 4,950,000 | 3.40 | % | ||||||||||||||||||||
| Total Senior Secured – Second Lien | 42,210,313 | 42,549,396 | 29.18 | % | ||||||||||||||||||||||||||
| CLO/Structured Credit — 1.20% | ||||||||||||||||||||||||||||||
| Goldentree Loan Management US CLO 2 Ltd.(3),(10) | USD CLO | LIBOR + 4.70% | 7.06 | % | 11/28/2030 | 2,000,000 | $ | 1,948,058 | $ | 1,739,600 | 1.20 | % | ||||||||||||||||||
| Total CLO/Structured Credit | 1,948,058 | 1,739,600 | 1.20 | % | ||||||||||||||||||||||||||
See notes to consolidated financial statements
12
Alcentra Capital Corporation and Subsidiary
Consolidated Schedule of Investments (continued)
As of December 31, 2018
| Company(+)*** | Industry | Spread Above Index | Base Rate Floor | Interest Rate | Maturity Date | No. Shares/ Principal Amount | Cost(1) | Fair Value | % of Net Assets | |||||||||||||||||||||||
| Equity/Other — 4.37% | ||||||||||||||||||||||||||||||||
| Champion ONE, Common Shares(2),(4) | Technology & Telecom | 11,250 | $ | 1,125,000 | $ | 908,410 | 0.62 | % | ||||||||||||||||||||||||
| Envocore Holding, LLC, Preferred Shares(2),(4),(6),(7) | Industrial Services | 1,139,725 | 1,160,360 | 788,000 | 0.54 | % | ||||||||||||||||||||||||||
| IGT, Preferred Shares(2),(4) | Industrial Services | 11% PIK | 11.00 | % | 12/10/2024 | 1,110,922 | 1,110,922 | — | — | |||||||||||||||||||||||
| Common Shares(2),(4) | 44,000 | 44,000 | — | — | ||||||||||||||||||||||||||||
| Preferred AA Shares(2),(4) | 15% PIK | 15.00 | % | 12/10/2024 | 326,789 | 326,789 | 271,789 | 0.19 | % | |||||||||||||||||||||||
| 1,481,711 | 271,789 | 0.19 | % | |||||||||||||||||||||||||||||
| Lugano Diamonds & Jewelry, Inc., Warrants(2),(4) | Retail | 666,615 | 666,615 | 1,000,000 | 0.69 | % | ||||||||||||||||||||||||||
| Metal Powder Products, LLC, Common Shares(2),(4) | Industrial Manufacturing | 500,000 | 500,000 | 666,047 | 0.46 | % | ||||||||||||||||||||||||||
| My Alarm Center, LLC, Common Shares(2),(4) | Security | 129,582 | 256,793 | — | — | |||||||||||||||||||||||||||
| Junior Preferred Shares(2),(4) | 2,420 | 2,366,549 | — | — | ||||||||||||||||||||||||||||
| Senior Preferred Shares(2),(4) | 8% PIK | 8.00 | % | 7/14/2022 | 2,998 | 2,862,059 | 1,023,999 | 0.70 | % | |||||||||||||||||||||||
| 5,485,401 | 1,023,999 | 0.70 | % | |||||||||||||||||||||||||||||
| Palmetto Moon LLC, Common Shares(2),(4) | Retail | 61 | 434,145 | 106,000 | 0.07 | % | ||||||||||||||||||||||||||
| Superior Controls, Inc., Preferred Shares(2),(4) | Wholesale/ Distribution | 400,000 | 400,000 | 789,192 | 0.54 | % | ||||||||||||||||||||||||||
| Tunnel Hill, Class B Common Units(2),(4),(11),(14) | Waste Services | |||||||||||||||||||||||||||||||