TCG BDC Earnings 2019-09-30

CGBD 10Q Quarterly Report

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Balance Sheet	Income Statement	Cash Flow

Comparables ($MM TTM)
Ticker	M Cap	Assets	Liab	Rev	G Profit	Net Inc	EBITDA	EV	G Margin	EV/EBITDA	ROA
PLL
ACCP
MMD
HCXY
CMFNL
MCI
PBB
GAM
MKD
FSK

10-Q 1 cgbd-3q2019_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 September 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	The Nasdaq Global Select Market

The number of shares of the registrant’s common stock, $0.01 par value per share, outstanding at November 5, 2019 was 59,013,476.

TCG BDC, INC.

INDEX




Part I.	Financial Information
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of September 30, 2019 (unaudited) and December 31, 2018	3
	Consolidated Statements of Operations for the three month and nine month periods ended September 30, 2019 and 2018 (unaudited)	4
	Consolidated Statements of Changes in Net Assets for the nine month periods ended September 30, 2019 and 2018 (unaudited)	5
	Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2019 and 2018 (unaudited)	6
	Consolidated Schedules of Investments as of September 30, 2019 (unaudited) and December 31, 2018	8
	Notes to Consolidated Financial Statements (unaudited)	32
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	69
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	99
Item 4.	Controls and Procedures	100
Part II.	Other Information
Item 1.	Legal Proceedings	101
Item 1A.	Risk Factors	101
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	101
Item 3.	Defaults Upon Senior Securities	101
Item 4.	Mine Safety Disclosures	102
Item 5.	Other Information	102
Item 6.	Exhibits	102
	Signatures	103

TCG BDC, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(dollar amounts in thousands, except per share data)



	September 30, 2019			December 31, 2018
ASSETS	(unaudited)
Investments, at fair value
Investments—non-controlled/non-affiliated, at fair value (amortized cost of $1,986,926 and $1,799,751, respectively)	$	1,893,216		$	1,731,319
Investments—non-controlled/affiliated, at fair value (amortized cost of $0 and $13,839, respectively)	6,607			18,543
Investments—controlled/affiliated, at fair value (amortized cost of $241,705 and $230,001, respectively)	226,865			222,295
Total investments, at fair value (amortized cost of $2,228,631 and $2,043,591, respectively)	2,126,688			1,972,157
Cash and cash equivalents	70,281			87,186
Receivable for investment sold	5,725			8,060
Deferred financing costs	4,687			3,950
Interest receivable from non-controlled/non-affiliated investments	11,561			5,853
Interest receivable from non-controlled/affiliated investments	—			3
Interest and dividend receivable from controlled/affiliated investments	6,951			7,405
Prepaid expenses and other assets	97			129
Total assets	$	2,225,990		$	2,084,743
LIABILITIES
Secured borrowings (Note 6)	$	756,511		$	514,635
Notes payable, net of unamortized debt issuance costs of $2,972 and $3,157, respectively (Note 7)	446,228			446,043
Payable for investments purchased	11			1,870
Due to Investment Adviser	142			236
Interest and credit facility fees payable (Notes 6 and 7)	7,680			7,500
Dividend payable (Note 9)	21,825			35,497
Base management and incentive fees payable (Note 4)	13,726			13,834
Administrative service fees payable (Note 4)	66			94
Other accrued expenses and liabilities	1,200			1,816
Total liabilities	1,247,389			1,021,525
Commitments and contingencies (Notes 8 and 11)
NET ASSETS
Common stock, $0.01 par value; 200,000,000 shares authorized; 59,013,476 shares and 62,230,251 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	590			622
Paid-in capital in excess of par value	1,126,845			1,174,334
Offering costs	(1,633		)	(1,633		)
Total distributable earnings (loss)	(147,201		)	(110,105		)
Total net assets	$	978,601		$	1,063,218
NET ASSETS PER SHARE	$	16.58		$	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 nine month periods ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Investment income:
From non-controlled/non-affiliated investments:
Interest income	$	47,118		$	41,736		$	139,584		$	122,722
Other income	1,756			1,925			6,050			6,410
Total investment income from non-controlled/non-affiliated investments	48,874			43,661			145,634			129,132
From non-controlled/affiliated investments:
Interest income	446			418			1,209			1,303
Total investment income from non-controlled/affiliated investments	446			418			1,209			1,303
From controlled/affiliated investments:
Interest income	2,459			3,401			9,240			9,230
Dividend income	4,000			3,800			11,750			11,550
Total investment income from controlled/affiliated investments	6,459			7,201			20,990			20,780
Total investment income	55,779			51,280			167,833			151,215
Expenses:
Base management fees (Note 4)	8,016			7,543			23,614			22,031
Incentive fees (Note 4)	5,710			5,449			17,489			16,763
Professional fees	534			869			1,879			2,590
Administrative service fees (Note 4)	61			179			442			550
Interest expense (Notes 6 and 7)	13,538			10,372			38,561			26,896
Credit facility fees (Note 6)	545			583			1,784			1,689
Directors’ fees and expenses	88			92			269			283
Other general and administrative	483			478			1,338			1,318
Total expenses	28,975			25,565			85,376			72,120
Net investment income (loss) before taxes	26,804			25,715			82,457			79,095
Excise tax expense	49			30			169			70
Net investment income (loss)	26,755			25,685			82,288			79,025
Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments:
Net realized gain (loss) from:
Non-controlled/non-affiliated investments	(10,909		)	(4,633		)	(8,600		)	(2,987		)
Controlled/affiliated investments	—			—			(9,091		)	—
Net change in unrealized appreciation (depreciation) on investments:
Non-controlled/non-affiliated investments	(22,343		)	(14,795		)	(34,074		)	(36,121		)
Non-controlled/affiliated investments	(48		)	(76		)	1,903			1,220
Controlled/affiliated investments	(2,850		)	(101		)	1,662			(862		)
Net change in unrealized currency gains (losses) on non-investment assets and liabilities	406			—			406			—
Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments and non-investment assets and liabilities	(35,744		)	(19,605		)	(47,794		)	(38,750		)
Net increase (decrease) in net assets resulting from operations	$	(8,989	)	$	6,080		$	34,494		$	40,275
Basic and diluted earnings per common share (Note 9)	$	(0.15	)	$	0.10		$	0.57		$	0.64
Weighted-average shares of common stock outstanding—Basic and Diluted (Note 9)	59,587,941			62,568,651			60,644,479			62,546,168

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 nine month periods ended
	September 30, 2019			September 30, 2018
Increase (decrease) in net assets resulting from operations:
Net investment income (loss)	$	82,288		$	79,025
Net realized gain (loss) on investments	(17,691		)	(2,987		)
Net change in unrealized appreciation (depreciation) on investments and non-investment assets and liabilities	(30,103		)	(35,763		)
Net increase (decrease) in net assets resulting from operations	34,494			40,275
Capital transactions:
Common stock issued, net of offering and underwriting costs	—			(15		)
Reinvestment of dividends	—			6,629
Repurchase of common stock	(47,521		)	—
Dividends declared (Note 12)	(71,590		)	(69,451		)
Net increase (decrease) in net assets resulting from capital share transactions	(119,111		)	(62,837		)
Net increase (decrease) in net assets	(84,617		)	(22,562		)
Net assets at beginning of period	1,063,218			1,127,304
Net assets at end of period	$	978,601		$	1,104,742

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 nine month periods ended
	September 30, 2019			September 30, 2018
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	34,494		$	40,275
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	931			1,601
Net accretion of discount on investments	(9,012		)	(8,636		)
Paid-in-kind interest	(6,841		)	(3,049		)
Net realized (gain) loss on investments	17,691			2,987
Net change in unrealized (appreciation) depreciation on investments	30,509			35,763
Net change in unrealized currency (gains) losses on non-investment assets and liabilities	(406		)	—
Cost of investments purchased and change in payable for investments purchased	(707,910		)	(632,498		)
Proceeds from sales and repayments of investments and change in receivable for investments sold	521,508			551,819
Changes in operating assets:
Interest receivable	(5,705		)	263
Dividend receivable	454			(960		)
Prepaid expenses and other assets	32			(244		)
Changes in operating liabilities:
Due to Investment Adviser	(94		)	62
Interest and credit facility fees payable	180			(875		)
Base management and incentive fees payable	(108		)	(106		)
Administrative service fees payable	(28		)	21
Other accrued expenses and liabilities	(616		)	(314		)
Net cash provided by (used in) operating activities	(124,921		)	(13,891		)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of offering and underwriting costs	—			(15		)
Repurchase of common stock	(47,521		)	—
Borrowings on SPV Credit Facility and Credit Facility	590,179			681,650
Repayments of SPV Credit Facility and Credit Facility	(347,897		)	(690,244		)
Proceeds from issuance of 2015-1R Notes	—			449,200
Redemption of 2015-1 Notes	—			(273,000		)
Debt issuance costs paid	(1,483		)	(2,675		)
Dividends paid in cash	(85,262		)	(70,153		)
Net cash provided by (used in) financing activities	108,016			94,763
Net increase (decrease) in cash and cash equivalents	(16,905		)	80,872
Cash and cash equivalents, beginning of period	87,186			32,039
Cash and cash equivalents, end of period	$	70,281		$	112,911
Supplemental disclosures:
Debt issuance costs payable	$	—		$	771
Interest paid during the period	$	38,244		$	26,969
Taxes, including excise tax, paid during the period	$	169		$	105
Dividends declared during the period	$	71,590		$	69,451
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 September 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 (77.08%)
Aero Operating, LLC (Dejana Industries, Inc.)	^+*	(2) (3) (13)	Business Services	L + 7.25%	9.29%	1/5/2018	12/29/2022	$	3,307	$	3,274	$	3,282	0.33	%
Alpha Packaging Holdings, Inc.	+*	(2) (3)	Containers, Packaging & Glass	L + 4.25%	6.35%	6/26/2015	5/12/2020	2,844		2,839		2,838		0.29
Alpine SG, LLC	^*	(2) (3)	High Tech Industries	L + 5.50%	7.76%	2/2/2018	11/16/2022	15,301		15,158		15,345		1.57
American Physician Partners, LLC	^+*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 6.50%	8.60%	1/7/2019	12/21/2021	38,401		37,938		38,509		3.94
AMS Group HoldCo, LLC	^+*	(2) (3) (13)	Transportation: Cargo	L + 6.00%	8.07%	9/29/2017	9/29/2023	30,853		30,340		30,472		3.11
Analogic Corporation	^+*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 6.00%	8.04%	6/22/2018	6/22/2024	35,320		34,692		34,737		3.55
Anchor Hocking, LLC	^	(2) (3)	Durable Consumer Goods	L + 8.25%	10.50%	1/25/2019	1/25/2024	10,996		10,663		10,639		1.09
Apptio, Inc.	^	(2) (3) (13)	Software	L + 7.25%	9.56%	1/10/2019	1/10/2025	35,541		34,803		34,972		3.57
Avenu Holdings, LLC	+*	(2) (3)	Sovereign & Public Finance	L + 5.25%	7.35%	9/28/2018	9/28/2024	38,763		38,141		37,441		3.83
Barnes & Noble, Inc.	^	(2) (3) (11)	Retail	L + 5.50%	7.68%	8/7/2019	8/7/2024	17,860		17,403		17,414		1.78
BMS Holdings III Corp.	^	(2) (3) (13)	Construction & Building	L + 5.25%	7.35%	9/30/2019	9/30/2026	11,667		11,277		11,292		2.31
Brooks Equipment Company, LLC	+*	(2) (3)	Construction & Building	L + 5.00%	7.12%	6/26/2015	8/29/2020	2,502		2,494		2,500		0.25
Capstone Logistics Acquisition, Inc.	+*	(2) (3)	Transportation: Cargo	L + 4.50%	6.54%	6/26/2015	10/7/2021	7,976		7,929		7,927		0.81
Captive Resources Midco, LLC	^*	(2) (3) (13)	Banking, Finance, Insurance & Real Estate	L + 6.00%	8.20%	6/30/2015	5/31/2025	29,009		28,843		28,736		2.94
Central Security Group, Inc.	+*	(2) (3)	Consumer Services	L + 5.63%	7.67%	6/26/2015	10/6/2021	23,301		23,152		22,975		2.35
Chartis Holding, LLC	^	(2) (3) (13)	Business Services	L + 5.00%	7.03%	5/1/2019	4/1/2025	15,966		15,541		16,060		1.64
Chemical Computing Group ULC (Canada)	^*	(2) (3) (7) (13)	Software	L + 5.25%	7.29%	8/30/2018	8/30/2023	15,676		15,534		15,556		1.59
CircusTrix Holdings, LLC	^+*	(2) (3) (13)	Hotel, Gaming & Leisure	L + 5.50%	7.54%	2/2/2018	12/16/2021	9,421		9,352		9,288		0.95
Comar Holding Company, LLC	^*	(2) (3) (13)	Containers, Packaging & Glass	L + 5.25%	7.30%	6/18/2018	6/18/2024	27,409		26,817		27,115		2.77
Continuum Managed Services Holdco, LLC	^+*	(2) (3) (13)	High Tech Industries	L + 6.00%	8.05%	6/20/2017	6/8/2023	28,028		27,451		27,988		2.86
Cority Software Inc. (Canada)	^*	(2) (3) (7) (13)	Software	L + 5.50%	7.82%	7/2/2019	7/2/2026	27,000		26,383		26,400		2.70
Dent Wizard International Corporation	+	(2) (3)	Automotive	L + 4.00%	6.05%	4/28/2015	4/7/2022	879		878		876		0.09
Derm Growth Partners III, LLC (Dermatology Associates)	^	(2) (3)	Healthcare & Pharmaceuticals	L + 7.25% (100% PIK)	9.35%	5/31/2016	5/31/2022	56,324		55,943		38,917		3.98

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

As of September 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 (77.08%) (continued)
DermaRite Industries, LLC	^*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 7.00%	9.02%	3/3/2017	3/3/2022	$	22,800	$	22,587		$	22,137		2.26	%
Digicel Limited	^+*		Telecommunications	6.00%	6.00%	7/23/2019	4/15/2021	250		194			176			0.02
Dimensional Dental Management, LLC	^	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 6.75%	10.00%	7/22/2019	7/22/2020	—		(25		)	—			—
Dimensional Dental Management, LLC	^	(2) (3) (9) (11)	Healthcare & Pharmaceuticals	L + 6.75%	8.84%	2/12/2016	2/12/2021	33,674		33,300			1,000			0.10
Direct Travel, Inc.	^+*	(2) (3) (13)	Hotel, Gaming & Leisure	L + 6.50%	8.65%	10/14/2016	12/1/2021	35,546		35,174			35,454			3.62
DTI Holdco, Inc.	*	(2) (3)	High Tech Industries	L + 4.75%	7.01%	12/18/2018	9/30/2023	1,980		1,868			1,806			0.18
EIP Merger Sub, LLC (Evolve IP)	^+*	(2) (3) (11)	Telecommunications	L + 5.75%	7.79%	6/7/2016	6/7/2022	41,370		40,667			41,089			4.20
Emergency Communications Network, LLC	^+*	(2) (3)	Telecommunications	L + 6.25%	8.29%	6/1/2017	6/1/2023	24,438		24,256			22,866			2.34
Ensono, LP	*	(2) (3)	Telecommunications	L + 5.25%	7.29%	4/30/2018	6/27/2025	8,558		8,547			8,484			0.87
Ethos Veterinary Health LLC	^+	(2) (3) (13)	Consumer Services	L + 4.75%	7.04%	5/17/2019	5/17/2026	10,888		10,744			10,903			1.11
Frontline Technologies Holdings, LLC	^	(2) (3)	Software	L + 6.50%	8.60%	9/18/2017	9/18/2023	48,351		47,978			48,235			4.93
FWR Holding Corporation	^+*	(2) (3) (13)	Beverage, Food & Tobacco	L + 5.50%	7.55%	8/21/2017	8/21/2023	46,078		45,296			46,023			4.70
Green Energy Partners/Stonewall, LLC	+*	(2) (3)	Energy: Electricity	L + 5.50%	7.60%	6/26/2015	11/10/2021	19,600		19,377			19,098			1.95
GRO Sub Holdco, LLC (Grand Rapids)	^+*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 6.00%	8.10%	2/28/2018	2/22/2023	6,606		6,509			6,118			0.63
Hummel Station, LLC	+*	(2) (3)	Energy: Electricity	L + 6.00%	8.04%	2/3/2016	10/27/2022	14,678		14,149			12,728			1.30
Hydrofarm, LLC	^	(2) (3)	Wholesale	L+10.00% (30% cash/70% PIK)	12.15%	5/15/2017	5/12/2022	21,038		20,698			12,674			1.30
iCIMS, Inc.	^	(2) (3) (13)	Software	L + 6.50%	8.56%	9/12/2018	9/12/2024	23,930		23,459			23,655			2.42
Innovative Business Services, LLC	^*	(2) (3) (13)	High Tech Industries	L + 5.50%	7.80%	4/5/2018	4/5/2023	16,183		15,785			15,897			1.62
Kaseya Luxembourg Holdings S.C.A. (Luxembourg)	^	(2) (3) (7) (13)	High Tech Industries	L + 5.50%, 1.00% PIK	8.60%	5/3/2019	5/5/2025	19,088		18,649			18,803			1.92
K2 Insurance Services, LLC	^	(2) (3) (13)	Banking, Finance, Insurance & Real Estate	L + 5.00%	7.19%	7/3/2019	7/1/2024	22,082		21,487			22,177			2.26
Legacy.com, Inc.	^	(2)(3)(11)	High Tech Industries	L + 6.00%, 1.00% PIK	9.10%	3/20/2017	3/20/2023	17,000		16,714			15,435			1.58
Liqui-Box Holdings, Inc.	^	(2) (3) (13)	Containers, Packaging & Glass	L + 4.50%	6.59%	6/3/2019	6/3/2024	—		(26		)	(46		)	—
Mailgun Technologies, Inc.	^*	(2) (3) (13)	High Tech Industries	L + 6.00%	8.11%	3/26/2019	3/26/2025	11,468		11,206			11,212			1.15
Metrogistics, LLC	+*	(2) (3)	Transportation: Cargo	L + 6.25%	8.35%	12/13/2016	9/30/2022	17,076		16,921			17,047			1.74

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

As of September 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 (77.08%) (continued)
National Carwash Solutions, Inc.	^+	(2) (3) (13)	Automotive	L + 6.00%	8.10%	8/7/2018	4/28/2023	$	8,431	$	8,260		$	8,225		0.84	%
National Technical Systems, Inc.	^+*	(2) (3) (13)	Aerospace & Defense	L + 6.25%	8.35%	6/26/2015	6/12/2021	28,023		27,810			28,005			2.86
NES Global Talent Finance US, LLC (United Kingdom)	+*	(2) (3) (7)	Energy: Oil & Gas	L + 5.50%	7.76%	5/9/2018	5/11/2023	9,916		9,766			9,747			1.00
Nexus Technologies, LLC	*	(2) (3)	High Tech Industries	L + 5.50%	7.60%	12/11/2018	12/5/2023	6,187		6,124			5,965			0.61
NMI AcquisitionCo, Inc.	^+*	(2) (3) (13)	High Tech Industries	L + 6.00%	8.04%	9/6/2017	9/6/2022	50,272		49,559			49,953			5.10
North American Dental Management, LLC	^	(2) (3)	Healthcare & Pharmaceuticals	P + 4.25%	9.25%	10/26/2018	7/7/2022	5,037		4,950			5,037			0.51
Northland Telecommunications Corporation	^*	(2) (3) (13)	Media: Broadcast & Subscription	L + 5.75%	7.79%	10/1/2018	10/1/2025	29,996		29,516			29,520			3.01
Paramit Corporation	+	(2) (3)	Capital Equipment	L + 4.50%	6.57%	5/3/2019	5/3/2025	7,163		7,087			7,169			0.73
PF Growth Partners, LLC	^	(2) (3) (13)	Hotel, Gaming & Leisure	L + 5.00%	7.08%	7/1/2019	7/11/2025	7,055		6,967			7,010			0.72
Plano Molding Company, LLC	^	(2) (3)	Hotel, Gaming & Leisure	L + 7.00%	9.04%	5/1/2015	5/12/2021	14,790		14,644			13,916			1.42
PPC Flexible Packaging, LLC	^+*	(2) (3) (13)	Containers, Packaging & Glass	L + 5.25%	7.29%	11/23/2018	11/23/2024	13,626		13,409			13,392			1.37
PPT Management Holdings, LLC	^	(2) (3)	Healthcare & Pharmaceuticals	L + 6.00%, 0.75% PIK	8.84%	12/15/2016	12/16/2022	27,753		27,591			23,199			2.37
Pretium Packaging, LLC	^+*	(2) (3)	Containers, Packaging & Glass	L + 5.00%	7.12%	8/15/2019	11/14/2023	7,719		7,635			7,662			0.78
PricewaterhouseCoopers Public Sector LLP	^	(2) (3) (13)	Aerospace & Defense	L + 3.25%	5.34%	5/1/2018	5/1/2023	—		(113		)	(79		)	(0.01	)
Prime Risk Partners, Inc.	^	(2) (3) (11)	Banking, Finance, Insurance & Real Estate	L + 5.00%	7.04%	8/15/2017	8/13/2023	27,720		27,273			27,576			2.82
Prime Risk Partners, Inc.	^	(2) (3)	Banking, Finance, Insurance & Real Estate	L + 5.00%	7.04%	8/15/2017	8/13/2023	2,171		2,137			2,160			0.22
Product Quest Manufacturing, LLC	^	(2) (3) (9) (13)	Containers, Packaging & Glass	L + 6.75%	10.00%	9/21/2017	3/31/2020	840		840			840			0.09
Product Quest Manufacturing, LLC	^	(2) (3) (9) (11)	Containers, Packaging & Glass	L + 5.75%	7.75%	9/9/2015	9/9/2020	33,000		32,270			—			—
Propel Insurance Agency, LLC	^	(2) (3)	Banking, Finance, Insurance & Real Estate	L + 4.50%	6.60%	6/1/2018	6/1/2024	2,369		2,350			2,362			0.24
PSI Services, LLC	^	(2) (3)	Business Services	L + 5.00%	7.08%	9/19/2018	1/20/2023	4,505		4,449			4,505			0.46
QW Holding Corporation (Quala)	^+*	(2) (3) (13)	Environmental Industries	L + 5.75%	7.77%	8/31/2016	8/31/2022	39,229		38,622			39,012			3.99
Redwood Services Group, LLC	^*	(2) (3)	High Tech Industries	L + 6.00%	8.12%	11/13/2018	6/6/2023	7,708		7,638			7,613			0.78

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

As of September 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 (77.08%) (continued)
Riveron Acquisition Holdings, Inc.	+	(2) (3)	Banking, Finance, Insurance & Real Estate	L + 6.25%	8.35%	5/22/2019	5/22/2025	$	15,661	$	15,342		$	15,667		1.60	%
Sapphire Convention, Inc. (Smart City)	^+*	(2) (3) (13)	Telecommunications	L + 5.25%	7.27%	11/20/2018	11/20/2025	28,649		28,022			28,414			2.90
Smile Doctors, LLC	^+*	(2) (3) (13)	Healthcare & Pharmaceuticals	L + 6.00%	8.09%	10/6/2017	10/6/2022	20,758		20,632			20,474			2.09
Sovos Brands Intermediate, Inc.	^	(2) (3)	Beverage, Food & Tobacco	L + 5.00%	7.20%	11/16/2018	11/20/2025	19,949		19,733			19,782			2.02
SPay, Inc.	^+*	(2) (3) (13)	Hotel, Gaming & Leisure	L + 5.75%	7.82%	6/15/2018	6/15/2024	20,511		20,137			18,532			1.89
Superior Health Linens, LLC	^+*	(2) (3) (13)	Business Services	L + 7.50%, 0.50% PIK	10.10%	9/30/2016	9/30/2021	21,882		21,695			19,500			1.99
Surgical Information Systems, LLC	^+*	(2) (3) (11)	High Tech Industries	L + 4.85%	6.89%	4/24/2017	4/24/2023	26,168		25,962			25,984			2.66
T2 Systems Canada, Inc.	+	(2) (3)	Transportation: Consumer	L + 6.75%	8.92%	5/24/2017	9/28/2022	3,938		3,877			3,926			0.40
T2 Systems, Inc.	^+*	(2) (3) (13)	Transportation: Consumer	L + 6.75%	8.92%	9/28/2016	9/28/2022	32,532		32,020			32,424			3.31
Tank Holding Corp.	^	(2) (3) (13)	Capital Equipment	L + 4.00%	6.05%	3/26/2019	3/26/2024	7		7			7			—
The Hilb Group, LLC	^	(2)(3)(11)(13)	Banking, Finance, Insurance & Real Estate	L + 6.00%	8.24%	6/24/2015	6/24/2021	66,939		66,187			66,133			6.76
The Leaders Romans Bidco Limited (United Kingdom)	^	(2) (3) (7) (13)	Banking, Finance, Insurance & Real Estate	L + 6.75%, 3.50% PIK	11.01%	7/23/2019	6/30/2024	£	19,765	23,905			23,489			2.40
Transform SR Holdings, LLC	^	(2) (3)	Retail	L + 7.25%	9.30%	2/11/2019	2/11/2024	19,050		18,853			18,861			1.93
Trump Card, LLC	^+*	(2) (3) (13)	Transportation: Cargo	L + 5.50%	7.60%	6/26/2018	4/21/2022	7,651		7,602			7,599			0.78
TSB Purchaser, Inc. (Teaching Strategies, LLC)	^+*	(2) (3) (13)	Media: Advertising, Printing & Publishing	L + 6.00%	8.10%	5/14/2018	5/14/2024	28,365		27,732			28,175			2.88
Tweddle Group, Inc.	^	(2) (3)	Media: Advertising, Printing & Publishing	L + 4.50%	6.55%	9/17/2018	9/17/2023	2,080		2,052			2,033			0.21
U.S. Acute Care Solutions, LLC	+	(2) (3)	Healthcare & Pharmaceuticals	L + 5.00%, 1.00% PIK	8.20%	2/21/2019	5/17/2021	4,277		4,227			4,145			0.42
USLS Acquisition, Inc.	^*	(2) (3) (13)	Business Services	L + 5.75%	7.85%	11/30/2018	11/30/2024	22,193		21,750			21,779			2.23
Unifrutti Financing PLC (Cyprus)	^	(2) (3) (7)	Beverage, Food & Tobacco	7.50%, 1.00% PIK	8.50%	9/15/2019	9/15/2026	€	4,530	4,733			4,691			0.48
VRC Companies, LLC	^+*	(2) (3) (13)	Business Services	L + 6.50%	8.57%	3/31/2017	3/31/2023	57,257		56,658			56,935			5.82
Watchfire Enterprises, Inc.	^	(2) (3)	Media: Advertising, Printing & Publishing	L + 4.25%	6.35%	6/9/2017	10/2/2020	1,196		1,193			1,196			0.12
Westfall Technik, Inc.	^	(2) (3) (13)	Chemicals, Plastics & Rubber	L + 5.75%	7.85%	9/13/2018	9/13/2024	27,153		26,551			25,934			2.65
WP CPP Holdings, LLC (CPP)	^	(2) (3) (13)	Aerospace & Defense	L + 3.75%	5.84%	7/18/2019	4/30/2025	—		(230		)	(163		)	(0.02	)
Zemax Software Holdings, LLC	^*	(2) (3) (13)	Software	L + 5.75%	7.85%	6/25/2018	6/25/2024	10,171		10,019			10,100			1.03
Zenith Merger Sub, Inc.	^+*	(2) (3) (13)	Business Services	L + 5.25%	7.35%	12/13/2017	12/13/2023	16,781		16,540			16,636			1.70
First Lien Debt Total										$	1,736,342		$	1,639,292		168.66	%

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

As of September 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 (10.91%)
Access CIG, LLC	*	(2) (3)	Business Services	L + 7.75%	10.07%	2/14/2018	2/27/2026	$	2,700	$	2,683	$	2,687	0.27	%
Aimbridge Acquisition Co., Inc.	^*	(2) (3)	Hotel, Gaming & Leisure	L + 7.50%	9.60%	2/1/2019	2/1/2027	7,727		7,607		7,542		0.77
AQA Acquisition Holding, Inc.	^	(2) (3)	High Tech Industries	L + 8.00%	10.32%	10/1/2018	5/24/2024	40,000		39,604		39,716		4.06
Brave Parent Holdings, Inc.	^*	(2) (3)	Software	L + 7.50%	9.76%	10/3/2018	4/19/2026	19,062		18,624		18,107		1.85
Jazz Acquisition, Inc.	^	(2) (3)	Aerospace & Defense	L + 8.00%	10.10%	6/13/2019	6/18/2027	23,450		23,079		23,071		2.36
Outcomes Group Holdings, Inc.	^*	(2) (3)	Business Services	L + 7.50%	9.62%	10/23/2018	10/26/2026	4,500		4,484		4,496		0.46
Pharmalogic Holdings Corp.	^	(2) (3)	Healthcare & Pharmaceuticals	L + 8.00%	10.04%	6/7/2018	12/11/2023	800		796

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$0.00	0	$0

10-Q	2019-11-05	Quarter: 2019-09-30
10-Q	2019-08-06	Quarter: 2019-06-30
10-Q	2019-05-07	Quarter: 2019-03-31
10-K	2019-02-26	Annual: 2018-12-31
10-Q	2018-11-06	Quarter: 2018-09-30
10-Q	2018-08-07	Quarter: 2018-06-30
10-Q	2018-05-03	Quarter: 2018-03-31
10-K	2018-02-27	Annual: 2017-12-31
10-Q	2017-11-07	Quarter: 2017-09-30
10-Q	2017-08-09	Quarter: 2017-06-30
10-Q	2017-05-10	Quarter: 2017-03-31
10-K	2017-03-22	Annual: 2016-12-31
10-Q	2016-11-10	Quarter: 2016-09-30
10-Q	2016-08-10	Quarter: 2016-06-30
10-Q	2016-05-09	Quarter: 2016-03-31
10-K	2016-03-11	Annual: 2015-12-31
10-Q	2015-11-06	Quarter: 2015-09-30
10-Q	2015-08-12	Quarter: 2015-06-30
10-Q	2015-05-08	Quarter: 2015-03-31
10-K	2015-03-27	Annual: 2014-12-31
10-Q	2014-11-05	Quarter: 2014-09-30
10-Q	2014-08-13	Quarter: 2014-06-30
10-Q	2014-05-09	Quarter: 2014-03-31
10-K	2014-03-14	Annual: 2013-12-31
10-Q	2013-11-08	Quarter: 2013-09-30
10-Q	2013-07-31	Quarter: 2013-06-30
10-Q	2013-05-28	Quarter: 2013-03-31

8-K	2019-12-20	Regulation FD, Exhibits
8-K	2019-11-05	Earnings, Regulation FD, Exhibits
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	2018-07-05	Regulation FD, Exhibits
8-K	2018-06-06	Shareholder Vote, Other Events, Exhibits
8-K	2018-05-03	Earnings, Regulation FD, Exhibits
8-K	2018-04-12	Regulation FD, Exhibits
8-K	2018-04-09	Other Events
8-K	2018-02-27	Earnings, Regulation FD, Exhibits
8-K	2018-01-12	Regulation FD, Exhibits
8-K	2017-12-31

EX-31.1	cgbd-3q2019_311exhibit.htm
EX-31.2	cgbd-3q2019_312exhibit.htm
EX-32.1	cgbd-3q2019_321exhibit.htm
EX-32.2	cgbd-3q2019_322exhibit.htm