TCG BDC Earnings 2019-06-30

CGBD 10Q Quarterly Report

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Balance Sheet	Income Statement	Cash Flow

10-Q 1 cgbd-2q2019_10q.htm 10-Q Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019



o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period to

Commission File No. 814-00995

TCG BDC, INC.

(Exact name of Registrant as specified in its charter)



Maryland		80-0789789
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

520 Madison Avenue, 40th Floor, New York, NY 10022		(212) 813-4900
(Address of principal executive office) (Zip Code)		(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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 ☒ 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. (Check one):

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 Exchange Act). Yes ☐ No x

Securities registered pursuant to Section 12(b) of the Act:



Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, $0.01 par value	CGBD	NASDAQ Global Select Market

The number of shares of the registrant’s common stock, $0.01 par value per share, outstanding at August 6, 2019 was 59,754,718.

TCG BDC, INC.

INDEX




Part I.	Financial Information
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of June 30, 2019 (unaudited) and December 31, 2018	3
	Consolidated Statements of Operations for the three month and six month periods ended June 30, 2019 and 2018 (unaudited)	4
	Consolidated Statements of Changes in Net Assets for the six month periods ended June 30, 2019 and 2018 (unaudited)	5
	Consolidated Statements of Cash Flows for the six month periods ended June 30, 2019 and 2018 (unaudited)	6
	Consolidated Schedules of Investments as of June 30, 2019 (unaudited) and December 31, 2018	7
	Notes to Consolidated Financial Statements (unaudited)	31
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	67
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	98
Item 4.	Controls and Procedures	99
Part II.	Other Information
Item 1.	Legal Proceedings	100
Item 1A.	Risk Factors	100
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	100
Item 3.	Defaults Upon Senior Securities	100
Item 4.	Mine Safety Disclosures	101
Item 5.	Other Information	101
Item 6.	Exhibits	101
	Signatures	102

TCG BDC, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(dollar amounts in thousands, except per share data)



	June 30, 2019			December 31, 2018
ASSETS	(unaudited)
Investments, at fair value
Investments—non-controlled/non-affiliated, at fair value (amortized cost of $1,912,346 and $1,799,751, respectively)	$	1,840,979		$	1,731,319
Investments—non-controlled/affiliated, at fair value (amortized cost of $14,270 and $13,839, respectively)	20,925			18,543
Investments—controlled/affiliated, at fair value (amortized cost of $225,701 and $230,001, respectively)	213,710			222,295
Total investments, at fair value (amortized cost of $2,152,317 and $2,043,591, respectively)	2,075,614			1,972,157
Cash and cash equivalents	62,324			87,186
Receivable for investment sold	14,854			8,060
Deferred financing costs	4,869			3,950
Interest receivable from non-controlled/non-affiliated investments	8,289			5,853
Interest receivable from non-controlled/affiliated investments	11			3
Interest and dividend receivable from controlled/affiliated investments	6,652			7,405
Prepaid expenses and other assets	143			129
Total assets	$	2,172,756		$	2,084,743
LIABILITIES
Secured borrowings (Note 6)	$	649,397		$	514,635
Notes payable, net of unamortized debt issuance costs of $3,034 and $3,157, respectively (Note 7)	446,166			446,043
Payable for investments purchased	—			1,870
Due to Investment Adviser	228			236
Interest and credit facility fees payable (Notes 6 and 7)	7,563			7,500
Dividend payable (Note 9)	27,082			35,497
Base management and incentive fees payable (Note 4)	13,846			13,834
Administrative service fees payable (Note 4)	128			94
Other accrued expenses and liabilities	1,754			1,816
Total liabilities	1,146,164			1,021,525
Commitments and contingencies (Notes 8 and 11)
NET ASSETS
Common stock, $0.01 par value; 200,000,000 shares authorized; 60,181,859 shares and 62,230,251 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively	602			622
Paid-in capital in excess of par value	1,144,000			1,174,334
Offering costs	(1,633		)	(1,633		)
Total distributable earnings (loss)	(116,377		)	(110,105		)
Total net assets	$	1,026,592		$	1,063,218
NET ASSETS PER SHARE	$	17.06		$	17.09

The accompanying notes are an integral part of these consolidated financial statements.

TCG BDC, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollar amounts in thousands, except per share data)

(unaudited)



	For the three month periods ended						For the six month periods ended
	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Investment income:
From non-controlled/non-affiliated investments:
Interest income	$	47,224		$	41,717		$	92,466		$	80,986
Other income	2,266			3,590			4,294			4,485
Total investment income from non-controlled/non-affiliated investments	49,490			45,307			96,760			85,471
From non-controlled/affiliated investments:
Interest income	384			447			763			885
Total investment income from non-controlled/affiliated investments	384			447			763			885
From controlled/affiliated investments:
Interest income	3,243			3,198			6,781			5,829
Dividend income	3,750			3,500			7,750			7,750
Total investment income from controlled/affiliated investments	6,993			6,698			14,531			13,579
Total investment income	56,867			52,452			112,054			99,935
Expenses:
Base management fees (Note 4)	7,913			7,266			15,598			14,488
Incentive fees (Note 4)	5,933			5,984			11,779			11,314
Professional fees	600			959			1,345			1,721
Administrative service fees (Note 4)	165			185			381			371
Interest expense (Notes 6 and 7)	13,032			8,709			25,023			16,524
Credit facility fees (Note 6)	671			581			1,239			1,106
Directors’ fees and expenses	88			93			181			191
Other general and administrative	434			435			855			840
Total expenses	28,836			24,212			56,401			46,555
Net investment income (loss) before taxes	28,031			28,240			55,653			53,380
Excise tax expense	60			30			120			40
Net investment income (loss)	27,971			28,210			55,533			53,340
Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments:
Net realized gain (loss) from:
Non-controlled/non-affiliated investments	1,410			1,775			2,309			1,646
Controlled/affiliated investments	(9,091		)	—			(9,091		)	—
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments	(14,204		)	(15,282		)	(11,731		)	(21,326		)
Non-controlled/affiliated investments	(345		)	(136		)	1,951			1,296
Controlled/affiliated investments	4,016			(1,461		)	4,512			(761		)
Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments	(18,214		)	(15,104		)	(12,050		)	(19,145		)
Net increase (decrease) in net assets resulting from operations	$	9,757		$	13,106		$	43,483		$	34,195
Basic and diluted earnings per common share (Note 9)	$	0.16		$	0.21		$	0.71		$	0.55
Weighted-average shares of common stock outstanding—Basic and Diluted (Note 9)	60,596,402			62,568,651			61,191,926			62,534,740

The accompanying notes are an integral part of these consolidated financial statements.

TCG BDC, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(dollar amounts in thousands)

(unaudited)



	For the six month periods ended
	June 30, 2019			June 30, 2018
Increase (decrease) in net assets resulting from operations:
Net investment income (loss)	$	55,533		$	53,340
Net realized gain (loss) on investments	(6,782		)	1,646
Net change in unrealized appreciation (depreciation) on investments	(5,268		)	(20,791		)
Net increase (decrease) in net assets resulting from operations	43,483			34,195
Capital transactions:
Common stock issued, net of offering and underwriting costs	—			(15		)
Reinvestment of dividends	—			6,629
Repurchase of common stock	(30,354		)	—
Dividends declared (Note 12)	(49,755		)	(46,301		)
Net increase (decrease) in net assets resulting from capital share transactions	(80,109		)	(39,687		)
Net increase (decrease) in net assets	(36,626		)	(5,492		)
Net assets at beginning of period	1,063,218			1,127,304
Net assets at end of period	$	1,026,592		$	1,121,812

The accompanying notes are an integral part of these consolidated financial statements.

TCG BDC, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollar amounts in thousands)

(unaudited)



	For the six month periods ended
	June 30, 2019			June 30, 2018
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	43,483		$	34,195
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Amortization of deferred financing costs	625			555
Net accretion of discount on investments	(6,146		)	(6,308		)
Paid-in-kind interest	(2,520		)	(429		)
Net realized (gain) loss on investments	6,782			(1,646		)
Net change in unrealized (appreciation) depreciation on investments	5,268			20,791
Cost of investments purchased and change in payable for investments purchased	(476,873		)	(397,804		)
Proceeds from sales and repayments of investments and change in receivable for investments sold	361,368			372,391
Changes in operating assets:
Interest receivable	(1,641		)	(851		)
Dividend receivable	(50		)	(660		)
Prepaid expenses and other assets	(14		)	(449		)
Changes in operating liabilities:
Due to Investment Adviser	(8		)	65
Interest and credit facility fees payable	63			813
Base management and incentive fees payable	12			154
Administrative service fees payable	34			18
Other accrued expenses and liabilities	(62		)	(67		)
Net cash provided by (used in) operating activities	(69,679		)	20,768
Cash flows from financing activities:
Proceeds from issuance of common stock, net of offering and underwriting costs	—			(15		)
Repurchase of common stock	(30,354		)	—
Borrowings on SPV Credit Facility and Credit Facility	402,950			423,050
Repayments of SPV Credit Facility and Credit Facility	(268,188		)	(400,838		)
Debt issuance costs paid	(1,421		)	(74		)
Dividends paid in cash	(58,170		)	(47,002		)
Net cash provided by (used in) financing activities	44,817			(24,879		)
Net increase (decrease) in cash and cash equivalents	(24,862		)	(4,111		)
Cash and cash equivalents, beginning of period	87,186			32,039
Cash and cash equivalents, end of period	$	62,324		$	27,928
Supplemental disclosures:
Interest paid during the period	$	24,860		$	15,710
Taxes, including excise tax, paid during the period	$	11		$	105
Dividends declared during the period	$	49,755		$	46,301
Reinvestment of dividends	$	—		$	6,629

The accompanying notes are an integral part of these consolidated financial statements.

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of June 30, 2019

(dollar amounts in thousands)

(unaudited)



Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾		Fair Value ⁽⁵⁾		% of Net Assets
Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾		Fair Value ⁽⁵⁾		% of Net Assets
First Lien Debt (77.95%)
Advanced Instruments, LLC	^+*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 5.25%	7.57%	11/1/2016	10/31/2022	$	19,866	$	19,642	$	19,782	1.93	%
Aero Operating, LLC (Dejana Industries, Inc.)	^+*	(2) (3) (13)	Business Services	L + 7.25%	9.75%	1/5/2018	12/29/2022	3,314		3,283		3,267		0.32
Alpha Packaging Holdings, Inc.	+*	(2) (3)	Containers, Packaging & Glass	L + 4.25%	6.58%	6/26/2015	5/12/2020	2,851		2,850		2,849		0.28
Alpine SG, LLC	^*	(2) (3)	High Tech Industries	L + 5.50%	8.08%	2/2/2018	11/16/2022	15,301		15,170		15,241		1.48
American Physician Partners, LLC	^+*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 6.50%	8.83%	1/7/2019	12/21/2021	37,476		36,972		37,504		3.65
AMS Group HoldCo, LLC	^+*	(2) (3) (13)	Transportation: Cargo	L + 6.00%	8.33%	9/29/2017	9/29/2023	31,906		31,346		31,053		3.02
Analogic Corporation	^+*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 6.00%	8.40%	6/22/2018	6/22/2024	35,072		34,412		34,611		3.37
Anchor Hocking, LLC	^	(2) (3)	Durable Consumer Goods	L + 8.25%	10.83%	1/25/2019	1/25/2024	11,575		11,223		11,199		1.09
Apptio, Inc.	^	(2) (3) (13)	Software	L + 7.25%	9.67%	1/10/2019	1/10/2025	35,541		34,821		34,912		3.40
Avenu Holdings, LLC	+*	(2) (3)	Sovereign & Public Finance	L + 5.25%	7.65%	9/28/2018	9/28/2024	38,861		38,248		38,002		3.70
Brooks Equipment Company, LLC	+*	(2) (3)	Construction & Building	L + 5.00%	7.52%	6/26/2015	8/29/2020	2,502		2,495		2,501		0.24
Capstone Logistics Acquisition, Inc.	+*	(2) (3)	Transportation: Cargo	L + 4.50%	6.90%	6/26/2015	10/7/2021	13,976		13,914		13,948		1.36
Captive Resources Midco, LLC	^*	(2) (3) (13)	Banking, Finance, Insurance & Real Estate	L + 5.75%	7.95%	6/30/2015	5/31/2025	29,082		28,683		28,722		2.80
Central Security Group, Inc.	+*	(2) (3)	Consumer Services	L + 5.63%	8.03%	6/26/2015	10/6/2021	23,362		23,225		23,024		2.24
Chartis Holding, LLC	^	(2) (3) (13)	Business Services	L + 5.00%	7.52%	5/1/2019	4/1/2025	16,006		15,582		15,684		1.53
Chemical Computing Group ULC (Canada)	^*	(2) (3) (7) (13)	Software	L + 5.50%	7.90%	8/30/2018	8/30/2023	15,715		15,572		15,672		1.53
CIP Revolution Holdings, LLC	^+*	(2) (3)	Media: Advertising, Printing & Publishing	L + 6.00%	8.35%	8/19/2016	8/19/2021	20,998		20,888		20,827		2.03
CircusTrix Holdings, LLC	^+*	(2) (3) (13)	Hotel, Gaming & Leisure	L + 5.50%	7.90%	2/2/2018	12/16/2021	9,166		9,108		9,068		0.88
Comar Holding Company, LLC	^*	(2) (3) (13)	Containers, Packaging & Glass	L + 5.25%	7.65%	6/18/2018	6/18/2024	27,182		26,598		26,815		2.61
Continuum Managed Services Holdco, LLC	^+*	(2) (3) (13)	High Tech Industries	L + 6.00%	8.41%	6/20/2017	6/8/2023	28,100		27,579		28,038		2.73
Dent Wizard International Corporation	+	(2) (3)	Automotive	L + 4.00%	6.40%	4/28/2015	4/7/2022	882		881		879		0.09
Derm Growth Partners III, LLC (Dermatology Associates)	^	(2) (3)	Healthcare & Pharmaceuticals	L + 7.25% (100% PIK)	9.58%	5/31/2016	5/31/2022	52,890		52,564		45,226		4.41
DermaRite Industries, LLC	^*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 7.00%	9.40%	3/3/2017	3/3/2022	22,849		22,645		22,371		2.18

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

As of June 30, 2019

(dollar amounts in thousands)

(unaudited)



Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾			Fair Value ⁽⁵⁾			% of Net Assets
Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾			Fair Value ⁽⁵⁾			% of Net Assets
First Lien Debt (77.95%) (continued)
Dimensional Dental Management, LLC	^	(2) (3) (9) (11)	Healthcare & Pharmaceuticals	L + 6.75%	9.07%	2/12/2016	2/12/2021	$	33,674	$	33,301		$	20,964		2.04	%
Direct Travel, Inc.	^+*	(2) (3) (13)	Hotel, Gaming & Leisure	L + 6.50%	8.90%	10/14/2016	12/1/2021	35,370		35,011			35,273			3.44
DTI Holdco, Inc.	*	(2) (3)	High Tech Industries	L + 4.75%	7.33%	12/18/2018	9/30/2023	1,985		1,869			1,815			0.18
EIP Merger Sub, LLC (Evolve IP)	^+*	(2) (3) (11)	Telecommunications	L + 5.75%	8.15%	6/7/2016	6/7/2022	38,021		37,409			37,800			3.68
Emergency Communications Network, LLC	^+*	(2) (3)	Telecommunications	L + 6.25%	8.65%	6/1/2017	6/1/2023	24,500		24,339			23,657			2.30
Ensono, LP	*	(2) (3)	Telecommunications	L + 5.25%	7.65%	4/30/2018	6/27/2025	8,580		8,495			8,527			0.83
Ethos Veterinary Health LLC	^+	(2) (3) (13)	Consumer Services	L + 4.75%	7.13%	5/17/2019	5/17/2026	10,906		10,776			10,835			1.06
Frontline Technologies Holdings, LLC	^	(2) (3) (13)	Software	L + 6.50%	8.82%	9/18/2017	9/18/2023	40,317		40,014			40,346			3.93
FWR Holding Corporation	^+*	(2) (3) (13)	Beverage, Food & Tobacco	L + 5.50%	7.90%	8/21/2017	8/21/2023	47,298		46,520			47,242			4.60
Green Energy Partners/Stonewall, LLC	+*	(2) (3)	Energy: Electricity	L + 5.50%	7.83%	6/26/2015	11/13/2021	19,650		19,426			19,290			1.88
GRO Sub Holdco, LLC (Grand Rapids)	^+*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 6.00%	8.33%	2/28/2018	2/22/2024	6,646		6,476			5,909			0.58
Hummel Station, LLC	+*	(2) (3)	Energy: Electricity	L + 6.00%	8.40%	2/3/2016	10/27/2022	14,400		13,787			12,864			1.25
Hydrofarm, LLC	^	(2) (3)	Wholesale	L+10.00% (30% cash/70% PIK)	12.44%	5/15/2017	5/12/2022	20,573		20,270			13,562			1.32
iCIMS, Inc.	^	(2) (3) (13)	Software	L + 6.50%	8.90%	9/12/2018	9/12/2024	23,930		23,471			23,628			2.30
Indra Holdings Corp. (Totes Isotoner)	^	(2) (3) (9)	Non-durable Consumer Goods	L + 4.25%	4.25%	4/29/2014	5/1/2021	18,965		17,667			7,618			0.74
Innovative Business Services, LLC	^*	(2) (3) (13)	High Tech Industries	L + 5.50%	8.09%	4/5/2018	4/5/2023	16,225		15,761			15,844			1.54
Kaseya Luxembourg Holdings S.C.A. (Luxembourg)	^	(2) (3) (7) (13)	High Tech Industries	L + 5.50%, 1.00% PIK	7.82%	5/3/2019	5/5/2025	18,314		17,883			17,901			1.74
Legacy.com, Inc.	^	(2) (3) (11)	High Tech Industries	L + 6.00%	8.33%	3/20/2017	3/20/2023	17,000		16,717			15,781			1.54
Liqui-Box Holdings, Inc.	^	(2) (3) (13)	Containers, Packaging & Glass	L + 4.50%	6.82%	6/3/2019	6/3/2024	—		(26		)	(13		)	(0.01	)
Mailgun Technologies, Inc.	^*	(2) (3) (13)	High Tech Industries	L + 6.00%	8.33%	3/26/2019	3/26/2025	11,497		11,253			11,374			1.11
Maravai Intermediate Holdings, LLC	^*	(2) (3)	Healthcare & Pharmaceuticals	L + 4.25%	6.69%	8/2/2018	8/2/2025	19,850		19,680			19,783			1.93
Metrogistics, LLC	+*	(2) (3)	Transportation: Cargo	L + 6.25%	8.65%	12/13/2016	9/30/2022	17,190		17,040			17,157			1.67
National Carwash Solutions, Inc.	^+	(2) (3) (13)	Automotive	L + 6.00%	8.43%	8/7/2018	4/28/2023	8,452		8,287			8,269			0.81
National Technical Systems, Inc.	^+*	(2) (3) (13)	Aerospace & Defense	L + 6.25%	8.69%	6/26/2015	6/12/2021	28,096		27,895			28,081			2.74

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

As of June 30, 2019

(dollar amounts in thousands)

(unaudited)



Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾			Fair Value ⁽⁵⁾			% of Net Assets
Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾			Fair Value ⁽⁵⁾			% of Net Assets
First Lien Debt (77.95%) (continued)
NES Global Talent Finance US, LLC (United Kingdom)	+*	(2) (3) (7)	Energy: Oil & Gas	L + 5.50%	8.08%	5/9/2018	5/11/2023	$	9,941	$	9,798		$	9,771		0.95	%
Nexus Technologies, LLC	*	(2) (3)	High Tech Industries	L + 5.50%	7.83%	12/11/2018	12/5/2023	6,203		6,151			6,014			0.59
NMI AcquisitionCo, Inc.	^+*	(2) (3) (13)	High Tech Industries	L + 6.75%	9.15%	9/6/2017	9/6/2022	50,784		50,092			50,000			4.87
North American Dental Management, LLC	^	(2) (3)	Healthcare & Pharmaceuticals	L + 5.25%	7.65%	10/26/2018	7/7/2023	5,037		4,948			4,966			0.48
Northland Telecommunications Corporation	^*	(2) (3) (13)	Media: Broadcast & Subscription	L + 5.75%	8.17%	10/1/2018	10/1/2025	21,530		21,210			21,181			2.06
Paramit Corporation	+	(2) (3)	Capital Equipment	L + 4.50%	6.82%	5/3/2019	5/3/2025	7,181		7,114			7,139			0.70
Plano Molding Company, LLC	^	(2) (3)	Hotel, Gaming & Leisure	L + 7.00%	9.40%	5/1/2015	5/12/2021	14,827		14,680			14,035			1.37
PPC Flexible Packaging, LLC	^+*	(2) (3) (13)	Containers, Packaging & Glass	L + 5.25%	7.65%	11/23/2018	11/23/2024	13,660		13,450			13,527			1.32
PPT Management Holdings, LLC	^	(2) (3)	Healthcare & Pharmaceuticals	L+ 7.50% (L+3.50% cash, 4.00% PIK)	10.19%	12/15/2016	12/16/2022	27,475		27,349			23,214			2.26
PricewaterhouseCoopers Public Sector LLP	^	(2) (3) (13)	Aerospace & Defense	L + 2.75%	5.07%	5/1/2018	5/1/2023	—		(125		)	(99		)	(0.01	)
Prime Risk Partners, Inc.	^	(2) (3) (11) (13)	Banking, Finance, Insurance & Real Estate	L + 5.38%	7.34%	8/15/2017	8/13/2023	27,720		27,219			27,699			2.70
Prime Risk Partners, Inc.	^	(2) (3) (13)	Banking, Finance, Insurance & Real Estate	L + 5.38%	7.73%	8/15/2017	8/13/2023	2,178		2,049			2,166			0.21
Product Quest Manufacturing, LLC	^	(2) (3) (9) (13)	Containers, Packaging & Glass	L + 6.75%	10.00%	9/21/2017	3/31/2019	1,793		1,793			1,793			0.17
Product Quest Manufacturing, LLC	^	(2) (3) (9) (11)	Containers, Packaging & Glass	L + 5.75%	5.75%	9/9/2015	9/9/2020	33,000		32,270			—			—
Propel Insurance Agency, LLC	^	(2) (3)	Banking, Finance, Insurance & Real Estate	L + 4.50%	6.83%	6/1/2018	6/1/2024	2,375		2,358			2,356			0.23
PSI Services, LLC	^	(2) (3)	Business Services	L + 5.00%	7.40%	9/19/2018	1/20/2023	4,516		4,464			4,516			0.44
QW Holding Corporation (Quala)	^+*	(2) (3) (13)	Environmental Industries	L + 5.75%	8.14%	8/31/2016	8/31/2022	39,329		38,768			39,040			3.80
Redwood Services Group, LLC	^*	(2) (3)	High Tech Industries	L + 6.00%	8.52%	11/13/2018	6/6/2023	7,727		7,674			7,618			0.74
Riveron Acquisition Holdings, Inc.	+	(2) (3)	Banking, Finance, Insurance & Real Estate	L + 6.25%	8.57%	5/22/2019	5/22/2025	15,700		15,390			15,501			1.51
Sapphire Convention, Inc. (Smart City)	^+*	(2) (3) (13)	Telecommunications	L + 5.25%	7.77%	11/20/2018	11/20/2025	28,721		28,108			28,479			2.77
Smile Doctors, LLC	^+*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 5.75%	8.10%	10/6/2017	10/6/2022	20,068		19,965			19,773			1.93

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

As of June 30, 2019

(dollar amounts in thousands)

(unaudited)



Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾		Fair Value ⁽⁵⁾		% of Net Assets
Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾		Fair Value ⁽⁵⁾		% of Net Assets
First Lien Debt (77.95%) (continued)
Sovos Brands Intermediate, Inc.	^	(2) (3)	Beverage, Food & Tobacco	L + 5.00%	7.20%	11/16/2018	11/20/2025	$	20,000	$	19,814	$	19,828	1.93	%
SPay, Inc.	^+*	(2) (3) (13)	Hotel, Gaming & Leisure	L + 5.75%	8.16%	6/15/2018	6/15/2024	20,512		19,994		18,386		1.79
Superior Health Linens, LLC	^+*	(2) (3) (13)	Business Services	L + 7.50%	9.82%	9/30/2016	9/30/2021	22,007		21,827		20,733		2.02
Surgical Information Systems, LLC	^+*	(2) (3) (11)	High Tech Industries	L + 4.85%	7.24%	4/24/2017	4/24/2023	26,168		25,984		25,948		2.53
T2 Systems Canada, Inc.	+	(2) (3)	Transportation: Consumer	L + 6.75%	9.08%	5/24/2017	9/28/2022	3,948		3,886		3,937		0.38
T2 Systems, Inc.	^+*	(2) (3) (13)	Transportation: Consumer	L + 6.75%	9.08%	9/28/2016	9/28/2022	32,905		32,384		32,810		3.20
Tank Holding Corp.	^	(2) (3) (13)	Capital Equipment	L + 4.00%	6.32%	3/26/2019	3/26/2024	—		—		—		—
The Hilb Group, LLC	^	(2) (3) (11) (13)	Banking, Finance, Insurance & Real Estate	L + 6.00%	8.33%	6/24/2015	6/24/2021	63,102		62,461		62,149		6.05
The Topps Company, Inc.	+*	(2) (3)	Non-durable Consumer Goods	L + 6.00%	8.33%	6/26/2015	10/2/2020	22,003		21,861		22,003		2.14
Transform SR Holdings, LLC	^	(2) (3) (11)	Retail	L + 7.25%	9.67%	2/11/2019	2/11/2024	19,050		18,870		18,860		1.84
Trump Card, LLC	^+*	(2) (3) (13)	Transportation: Cargo	L + 5.00%	7.33%	6/26/2018	4/21/2022	7,935		7,893		7,903		0.77
TSB Purchaser, Inc. (Teaching Strategies, LLC)	^+*	(2) (3) (13)	Media: Advertising, Printing & Publishing	L + 6.00%	8.33%	5/14/2018	5/14/2024	28,435		27,809		28,031		2.73
Tweddle Group, Inc.	^	(2) (3)	Media: Advertising, Printing & Publishing	L + 4.50%	6.90%	9/17/2018	9/17/2023	2,080		2,053		2,052		0.20
U.S. Acute Care Solutions, LLC	+	(2) (3)	Healthcare & Pharmaceuticals	L + 5.00%	7.20%	2/21/2019	5/15/2021	4,288		4,237		4,065		0.40
USLS Acquisition, Inc.	^*	(2) (3) (13)	Business Services	L + 5.75%	8.16%	11/30/2018	11/30/2024	19,648		19,227		19,159		1.87
VRC Companies, LLC	^+*	(2) (3) (13)	Business Services	L + 6.50%	8.90%	3/31/2017	3/31/2023	56,820		56,140		56,478		5.50
Watchfire Enterprises, Inc.	^	(2) (3)	Media: Advertising, Printing & Publishing	L + 4.25%	6.58%	6/9/2017	10/2/2020	1,196		1,190		1,195		0.12
Westfall Technik, Inc.	^	(2) (3) (13)	Chemicals, Plastics & Rubber	L + 5.25%	7.58%	9/13/2018	9/13/2024	25,921		25,218		25,342		2.47
Zemax Software Holdings, LLC	^*	(2) (3) (13)	Software	L + 5.75%	8.08%	6/25/2018	6/25/2024	10,197		10,071		10,133		0.99
Zenith Merger Sub, Inc.	^+*	(2) (3) (13)	Business Services	L + 5.25%	7.85%	12/13/2017	12/13/2023	15,545		15,320		15,543		1.51
First Lien Debt Total										$	1,691,986	$	1,617,946	157.60	%
Second Lien Debt (9.79%)
Access CIG, LLC	*	(2) (3)	Business Services	L + 7.75%	10.19%	2/14/2018	2/27/2026	$	2,700	$	2,679	$	2,683	0.26	%
Aimbridge Acquisition Co., Inc.	^*	(2) (3)	Hotel, Gaming & Leisure	L + 7.50%	9.94%	2/1/2019	2/1/2027	7,727		7,597		7,738		0.75

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

As of June 30, 2019

(dollar amounts in thousands)

(unaudited)



Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾		Fair Value ⁽⁵⁾		% of Net Assets
Investments—non-controlled/non-affiliated ⁽¹⁾		Footnotes	Industry	Reference Rate & Spread ⁽²⁾	Interest Rate ⁽²⁾	Acquisition Date	Maturity Date	Par/ Principal Amount		Amortized Cost ⁽⁴⁾		Fair Value ⁽⁵⁾		% of Net Assets
Second Lien Debt (9.79%) (continued)
AQA Acquisition Holding, Inc.	^	(2) (3)	High Tech Industries	L + 8.00%	10.48%	10/1/2018	5/24/2024	$	40,000	$	39,649	$	39,796	3.88	%
Argon Medical Devices Holdings, Inc.	^*	(2) (3)	Healthcare & Pharmaceuticals	L + 8.00%	10.40%	11/2/2017	1/23/2026	9,498		9,440		9,468		0.92
Brave Parent Holdings, Inc.	^*	(2) (3)	Software	L + 7.50%	10.08%	10/3/2018	4/19/2026	19,062		18,637		18,886		1.84
Jazz Acquisition, Inc.	^	(2) (3)	Aerospace & Defense	L + 8.00%	10.33%	6/13/2019	6/11/2027	23,450		23,099		23,098		2.25
Outcomes Group Holdings, Inc.	^*	(2) (3)	Business Services	L + 7.50%	10.02%	10/23/2018	10/26/2026	4,500		4,500		4,499		0.44
Pharmalogic Holdings Corp.	^	(2) (3)	Healthcare & Pharmaceuticals	L + 8.00%	10.40%	6/7/2018	12/11/2023	800		796		800		0.08
Quartz Holding Company (QuickBase, Inc.)	^	(2) (3)	Software	L + 8.00%	10.44%	4/2/2019	4/2/2027	11,900		11,668		11,733		1.14
Reladyne, Inc.	^+*	(2) (3) (13)	Wholesale	L + 9.50%	11.82%	4/19/2018	1/21/2023	12,242		12,060		12,260		1.19
Santa Cruz Holdco, Inc.	^	(2) (3)	Non-durable Consumer Goods	L + 8.25%	10.85%	12/15/2017	12/13/2024	17,138		16,992		17,078		1.66
Tank Holding Corp.	^	(2) (3)	Capital Equipment	L + 8.25%	10.57%	3/26/2019	3/26/2027	37,380		36,648		36,816		3.59
Ultimate Baked Goods MIDCO, LLC (Rise Baking)	^	(2) (3)	Beverage, Food & Tobacco	L + 8.00%	10.40%	8/9/2018	8/9/2026	8,333		8,182		8,215		0.80
Watchfire Enterprises, Inc.	^	(2) (3)	Media: Advertising, Printing & Publishing	L + 8.00%	10.33%	10/2/2013	10/2/2021	7,000		6,956		6,976		0.68
Zywave, Inc.	^	(2) (3)	High Tech Industries	L + 9.00%	11.59%	11/18/2016	11/17/2023	3,141		3,107		3,141		0.31
Second Lien Debt Total										$	202,010	$	203,187	19.79	%

TCG BDC, INC.

10-Q	2019-06-30	Quarter: 2019-06-30
10-Q	2019-03-31	Quarter: 2019-03-31
10-K	2018-12-31	Annual: 2018-12-31
10-Q	2018-09-30	Quarter: 2018-09-30
10-Q	2018-06-30	Quarter: 2018-06-30
10-Q	2018-03-31	Quarter: 2018-03-31
10-K	2017-12-31	Annual: 2017-12-31
10-Q	2017-09-30	Quarter: 2017-09-30
10-Q	2017-06-30	Quarter: 2017-06-30
10-Q	2017-03-31	Quarter: 2017-03-31
10-K	2016-12-31	Annual: 2016-12-31
10-Q	2016-09-30	Quarter: 2016-09-30
10-Q	2016-06-30	Quarter: 2016-06-30
10-Q	2016-03-31	Quarter: 2016-03-31
10-K	2015-12-31	Annual: 2015-12-31
10-Q	2015-09-30	Quarter: 2015-09-30
10-Q	2015-06-30	Quarter: 2015-06-30
10-Q	2015-03-31	Quarter: 2015-03-31
10-K	2014-12-31	Annual: 2014-12-31
10-Q	2014-09-30	Quarter: 2014-09-30
10-Q	2014-06-30	Quarter: 2014-06-30
10-Q	2014-03-31	Quarter: 2014-03-31
10-K	2013-12-31	Annual: 2013-12-31

8-K	2019-10-11	Regulation FD, Exhibits
8-K	2019-09-19	Officers
8-K	2019-08-06	Earnings, Regulation FD, Exhibits
8-K	2019-07-12	Regulation FD, Exhibits
8-K	2019-06-19	Officers
8-K	2019-06-17	Regulation FD, Exhibits
8-K	2019-05-22	Shareholder Vote
8-K	2019-05-14	Officers
8-K	2019-05-07	Earnings, Regulation FD, Exhibits
8-K	2019-04-24	Regulation FD
8-K	2019-04-12	Regulation FD, Exhibits
8-K	2019-02-26	Earnings, Regulation FD, Exhibits
8-K	2019-01-16	Regulation FD, Exhibits
8-K	2019-01-09	Officers
8-K	2018-12-12	Regulation FD, Exhibits
8-K	2018-11-06	Earnings, Regulation FD, Other Events, Exhibits
8-K	2018-10-25	Regulation FD
8-K	2018-10-09	Regulation FD, Exhibits
8-K	2018-08-07	Earnings, Regulation FD, Exhibits
8-K	2018-06-06	Shareholder Vote, Other Events, Exhibits
8-K	2017-12-31

WRE	Washington Real Estate Investment Trust	2,076
USAU	US Gold	17
GSAH	GS Acquisition Holdings	0
OCSI	Oaktree Strategic Income	0
PIO	Pioneer	0
DRIV	Digital River	0
CPTA	Capitala Finance	0
FIF	Financial Federal	0
PFI	Pelican Financial	0
SCA	Syncora Holdings	0

EX-10.1	cgbd-2q2019_101exhibit.htm
EX-10.2	cgbd-2q2019_102exhibit.htm
EX-31.1	cgbd-2q2019_311exhibit.htm
EX-31.2	cgbd-2q2019_312exhibit.htm
EX-32.1	cgbd-2q2019_321exhibit.htm
EX-32.2	cgbd-2q2019_322exhibit.htm