Company Quick10K Filing
Quick10K
Fidus Investment
10-Q 2019-09-30 Quarter: 2019-09-30
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-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 2019-10-31 Earnings, Regulation FD, Exhibits
8-K 2019-10-10 Earnings
8-K 2019-08-01 Earnings, Regulation FD, Exhibits
8-K 2019-06-19 Shareholder Vote
8-K 2019-05-02 Earnings, Regulation FD, Exhibits
8-K 2019-04-24 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2019-03-07 Officers
8-K 2019-02-28 Earnings, Exhibits
8-K 2019-02-05 Earnings
8-K 2018-11-01 Earnings, Regulation FD, Exhibits
8-K 2018-10-19 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-08-02 Earnings, Regulation FD, Exhibits
8-K 2018-06-07 Shareholder Vote
8-K 2018-06-05 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-01-30 Earnings
8-K 2017-12-29 Enter Agreement, Off-BS Arrangement, Exhibits
FMHI Fah Mai Holdings 2,903
OCSL Oaktree Specialty Lending 0
BKCC Blackrock Capital Investment 0
IGI Imagistics 0
GSBD Goldman Sachs BDC 0
TCRD THL Credit 0
HRZN Horizon Technology Finance 0
PBY Pep Boys Manny Moe & Jack 0
GARS Garrison Capital 0
GBDC Golub Capital BDC 0
FDUS 2019-09-30
Part I - Financial Information
Item 1. Financial Statements.
Note 1. Organization and Nature of Business
Note 2. Significant Accounting Policies
Note 3. Portfolio Company Investments
Note 4. Fair Value Measurements
Note 5. Related Party Transactions
Note 6. Debt
Note 7. Commitments and Contingencies
Note 8. Common Stock
Note 9. Dividends and Distributions
Note 10. Financial Highlights
Note 11. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
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 d805589dex311.htm
EX-31.2 d805589dex312.htm
EX-32.1 d805589dex321.htm

Fidus Investment Earnings 2019-09-30

FDUS 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 d805589d10q.htm 10-Q 10-Q
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

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

For the transition period from                      to                     

Commission file number 814-00861

 

 

Fidus Investment Corporation

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Maryland   27-5017321

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

1603 Orrington Avenue, Suite 1005

Evanston, Illinois

  60201
(Address of Principal Executive Offices)   (Zip Code)

(847) 859-3940

(Registrant’s telephone number, including area code)    

 

 

n/a

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

 

 

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   FDUS   The NASDAQ Global Select Market
5.875% Notes due 2023   FDUSL   The NASDAQ Global Select Market
6.000% Notes due 2024   FDUSZ   The NASDAQ Global Select Market
5.375% Notes due 2024   FDUSG   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  ☒    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 the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer      Accelerated filer  
Non-accelerated filer      Smaller reporting company  
     Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected 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  ☒

As of October 29, 2019, the Registrant had outstanding 24,463,119 shares of common stock, $0.001 par value.

 

 

 


Table of Contents

FIDUS INVESTMENT CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

 

  PART I — FINANCIAL INFORMATION   

Item 1.

 

Financial Statements

     3  
 

Consolidated Statements of Assets and Liabilities — September  30, 2019 (unaudited) and December 31, 2018

     3  
  Consolidated Statements of Operations — Three and Nine Months Ended September 30, 2019 (unaudited) and 2018 (unaudited)     
4
 
  Consolidated Statements of Changes in Net Assets — Three and Nine Months Ended September 30, 2019 (unaudited) and 2018 (unaudited)      5  
 

Consolidated Statements of Cash Flows — Nine Months Ended September 30, 2019 (unaudited) and 2018 (unaudited)

     6  
 

Consolidated Schedules of Investments — September  30, 2019 (unaudited) and December 31, 2018

     7  
 

Notes to Consolidated Financial Statements (unaudited)

     18  

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

     38  

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

     55  

Item 4.

 

Controls and Procedures

     56  
  PART II — OTHER INFORMATION   

Item 1.

 

Legal Proceedings

     57  

Item 1A.

 

Risk Factors

     57  

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

     58  

Item 3.

 

Defaults Upon Senior Securities

     59  

Item 4.

 

Mine Safety Disclosures

     59  

Item 5.

 

Other Information

     59  

Item 6.

 

Exhibits

     60  

Signatures

     61  

Exhibit Index

  

 

2


Table of Contents

PART I — FINANCIAL INFORMATION

 

Item 1.

Financial Statements.

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Assets and Liabilities

(in thousands, except shares and per share data)

 

     September 30, 2019
(unaudited)
     December 31,
2018
 

ASSETS

     

Investments, at fair value:

     

Control investments (cost: $27,279 and $22,697, respectively)

   $ 15,132      $ 18,820  

Affiliate investments (cost: $56,160 and $70,924, respectively)

     111,872        123,051  

Non-control/non-affiliate  investments (cost: $608,077 and $505,129, respectively)

     602,438        501,111  
  

 

 

    

 

 

 

Total investments, at fair value (cost: $691,516 and $598,750, respectively)

     729,442        642,982  

Cash and cash equivalents

     17,526        42,015  

Interest receivable

     6,483        7,528  

Prepaid expenses and other assets

     1,289        1,351  
  

 

 

    

 

 

 

Total assets

   $  754,740      $  693,876  
  

 

 

    

 

 

 

LIABILITIES

     

SBA debentures, net of deferred financing costs (Note 6)

   $ 153,662      $ 186,734  

Public Notes, net of deferred financing costs (Note 6)

     115,535        48,411  

Borrowings under Credit Facility, net of deferred financing costs (Note 6)

     65,316        36,358  

Accrued interest and fees payable

     1,644        2,812  

Base management fee payable – due to affiliate

     3,179        2,927  

Income incentive fee payable – due to affiliate

     2,163        2,785  

Capital gains incentive fee payable – due to affiliate

     9,788        9,415  

Administration fee payable and other – due to affiliate

     199        474  

Taxes payable

     1        803  

Accounts payable and other liabilities

     421        172  
  

 

 

    

 

 

 

Total liabilities

     351,908        290,891  
  

 

 

    

 

 

 

Commitments and contingencies (Note 7)

     

NET ASSETS

     
Common stock, $0.001 par value (100,000,000 shares authorized, 24,463,119 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively)      24        24  

Additional paid-in capital

     366,278        366,278  

Total distributable earnings

     36,530        36,683  
  

 

 

    

 

 

 

Total net assets

     402,832        402,985  
  

 

 

    

 

 

 

Total liabilities and net assets

   $ 754,740      $ 693,876  
  

 

 

    

 

 

 

Net asset value per common share

   $ 16.47      $ 16.47  
  

 

 

    

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

3


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Operations (unaudited)

(in thousands, except shares and per share data)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2019     2018     2019     2018  

Investment Income:

        

Interest income

        

Control investments

   $ 70     $ 63     $ 420     $ 181  

Affiliate investments

     1,192       1,730       4,126       5,268  

Non-control/non-affiliate  investments

     14,871       13,621       40,686       40,385  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

     16,133       15,414       45,232       45,834  

Payment-in-kind interest income

        

Control investments

     191       171       1,611       486  

Affiliate investments

     86       106       254       613  

Non-control/non-affiliate  investments

     1,976       1,238       5,973       3,425  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total payment-in-kind  interest income

     2,253       1,515       7,838       4,524  

Dividend income

        

Control investments

     —         —         —         —    

Affiliate investments

     1       312       942       953  

Non-control/non-affiliate  investments

     (39     45       (54     37  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total dividend income

     (38     357       888       990  

Fee income

        

Control investments

     —         —         349       —    

Affiliate investments

     4       —         26       23  

Non-control/non-affiliate  investments

     821       556       3,150       2,745  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total fee income

     825       556       3,525       2,768  

Interest on idle funds and other income

     28       30       116       101  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

     19,201       17,872       57,599       54,217  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Interest and financing expenses

     4,421       3,106       12,197       9,084  

Base management fee

     3,179       2,932       9,066       8,438  

Incentive fee - income

     2,163       2,234       5,947       6,628  

Incentive fee - capital gains

     1,307       1,464       373       2,731  

Administrative service expenses

     422       366       1,199       1,112  

Professional fees

     217       233       1,213       1,018  

Other general and administrative expenses

     210       226       1,025       1,212  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     11,919       10,561       31,020       30,223  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income before income taxes

     7,282       7,311       26,579       23,994  

Income tax provision (benefit)

     (80     (170     (25     28  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     7,362       7,481       26,604       23,966  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gains (losses) on investments:

        

Net realized gains (losses):

        

Control investments

     —         —         (1,268     —    

Affiliate investments

     26       109       (73     842  

Non-control/non-affiliate  investments

     10,507       (7,345     10,172       (15,996
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized gain (loss) on investments

     10,533       (7,236     8,831       (15,154
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax (provision) benefit from realized gains on investments

     32       340       (261     (1,408

Net change in unrealized appreciation (depreciation):

        

Control investments

     (9,843     105       (8,270     (94

Affiliate investments

     (1,701     12,208       3,585       27,946  

Non-control/non-affiliate  investments

     7,722       1,903       (1,621     2,364  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net change in unrealized appreciation (depreciation) on investments

     (3,822     14,216       (6,306     30,216  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net gain (loss) on investments

     6,743       7,320       2,264       13,654  

Realized losses on extinguishment of debt

     (210     —         (399     (150
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in net assets resulting from operations

   $ 13,895     $ 14,801     $ 28,469     $ 37,470  
  

 

 

   

 

 

   

 

 

   

 

 

 

Per common share data:

        

Net investment income per share-basic and diluted

   $ 0.30     $ 0.31     $ 1.09     $ 0.98  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in net assets resulting from operations per share — basic and diluted

   $ 0.57     $ 0.61     $ 1.16     $ 1.53  
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividends declared per share

   $ 0.39     $ 0.39     $ 1.17     $ 1.17  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares outstanding — basic and diluted

     24,463,119       24,463,119       24,463,119       24,474,632  
  

 

 

   

 

 

   

 

 

   

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

4


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Changes in Net Assets (unaudited)

(in thousands, except shares)

 

     Common Stock      Additional     Total        
     Number of     Par      paid-in     distributable     Total net  
     shares     value      capital     earnings     assets  

Balances at December 31, 2017

     24,507,940     $ 24      $  370,796     $ 22,453     $  393,273  

Repurchases of common stock under Stock Repurchase Program (Note 8)

     (44,821     —          (582     —         (582

Net investment income

     —         —          —         7,527       7,527  

Net realized gain (loss) on investments, net of taxes

     —         —          —         5,531       5,531  

Net unrealized appreciation (depreciation) on investments

     —         —          —         2,117       2,117  

Realized losses on extinguishment of debt

     —         —          —         (150     (150

Dividends declared

     —         —          —         (9,558     (9,558
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balances at March 31, 2018

     24,463,119     $ 24      $ 370,214     $ 27,920     $ 398,158  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Net investment income

     —         —          —         8,958       8,958  

Net realized gain (loss) on investments, net of taxes

     —         —          —         (15,197     (15,197

Net unrealized appreciation (depreciation) on investments

     —         —          —         13,883       13,883  

Realized losses on extinguishment of debt

     —         —          —         —         —    

Dividends declared

     —         —          —         (9,541     (9,541
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balances at June 30, 2018

     24,463,119     $ 24      $ 370,214     $ 26,023     $ 396,261  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Net investment income

     —         —          —         7,481       7,481  

Net realized gain (loss) on investments, net of taxes

     —         —          —         (6,896     (6,896

Net unrealized appreciation (depreciation) on investments

     —         —          —         14,216       14,216  

Realized losses on extinguishment of debt

     —         —          —         —         —    

Dividends declared

     —         —          —         (9,540     (9,540
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balances at September 30, 2018

     24,463,119     $ 24      $ 370,214     $ 31,284     $ 401,522  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balances at December 31, 2018

     24,463,119     $ 24      $ 366,278     $ 36,683     $ 402,985  

Net investment income

     —         —          —         9,599       9,599  

Net realized gain (loss) on investments, net of taxes

     —         —          —         (1,583     (1,583

Net unrealized appreciation (depreciation) on investments

     —         —          —         3,545       3,545  

Realized losses on extinguishment of debt

     —         —          —         (189     (189

Dividends declared

     —         —          —         (9,541     (9,541
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balances at March 31, 2019

     24,463,119     $ 24      $ 366,278     $ 38,514     $ 404,816  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Net investment income

     —         —          —         9,643       9,643  

Net realized gain (loss) on investments, net of taxes

     —         —          —         (412     (412

Net unrealized appreciation (depreciation) on investments

     —         —          —         (6,029     (6,029

Realized losses on extinguishment of debt

     —         —          —         —         —    

Dividends declared

     —         —          —         (9,540     (9,540
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balances at June 30, 2019

     24,463,119     $ 24      $ 366,278     $ 32,176     $ 398,478  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Net investment income

     —         —          —         7,362       7,362  

Net realized gain (loss) on investments, net of taxes

     —         —          —         10,565       10,565  

Net unrealized appreciation (depreciation) on investments

     —         —          —         (3,822     (3,822

Realized losses on extinguishment of debt

     —         —          —         (210     (210

Dividends declared

     —         —          —         (9,541     (9,541
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balances at September 30, 2019

     24,463,119     $ 24      $ 366,278     $ 36,530     $ 402,832  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

5


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

 

     Nine Months Ended September 30,  
     2019     2018  

Cash Flows from Operating Activities:

    

Net increase in net assets resulting from operations

   $ 28,469     $ 37,470  

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities:

    

Net change in unrealized (appreciation) depreciation on investments

     6,306       (30,216

Net realized (gain) loss on investments

     (8,831     15,154  

Interest and dividend income paid-in-kind

     (7,838     (4,610

Accretion of original issue discount

     (51     (208

Accretion of loan origination fees

     (796     (624

Purchase of investments

     (175,535     (144,614

Proceeds from sales and repayments of investments

     98,805       92,052  

Proceeds from loan origination fees

     1,480       871  

Realized losses on extinguishment of debt

     399       150  

Amortization of deferred financing costs

     1,315       1,014  

Changes in operating assets and liabilities:

    

Interest receivable

     1,045       1,387  

Prepaid expenses and other assets

     44       40  

Accrued interest and fees payable

     (1,169     (1,432

Base management fee payable – due to affiliate

     252       346  

Income incentive fee payable – due to affiliate

     (622     80  

Capital gains incentive fee payable – due to affiliate

     373       2,731  

Administration fee payable and other – due to affiliate

     (275     (137

Taxes payable

     (802     30  

Accounts payable and other liabilities

     250       187  
  

 

 

   

 

 

 

Net cash provided by (used for) operating activities

     (57,181     (30,329
  

 

 

   

 

 

 

Cash Flows from Financing Activities:

    

Proceeds received from SBA debentures

     7,500       27,000  

Repayments of SBA debentures

     (41,000     (43,800

Proceeds received from issuance of Public Notes

     69,000       50,000  

Proceeds received from (repayments of) borrowings under Credit Facility, net

     30,000       25,500  

Payment of deferred financing costs

     (4,186     (2,650

Dividends paid to stockholders, including expenses

     (28,622     (28,639

Repurchases of common stock under Stock Repurchase Program

     —         (582
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     32,692       26,829  
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (24,489     (3,500

Cash and cash equivalents:

    

Beginning of period

     42,015       41,572  
  

 

 

   

 

 

 

End of period

   $ 17,526     $ 38,072  
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information:

    

Cash payments for interest

   $ 12,050     $ 9,502  

Cash payments for taxes, net of tax refunds received

   $ 1,038     $ 1,406  

See Notes to Consolidated Financial Statements (unaudited).

 

6


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment       Principal           Fair     Percent of  

Investment Type (c)        

  Industry     Spread / Floor (d)   Cash/PIK   Date (f)   Maturity   Amount     Cost     Value (g)     Net Assets  

Control Investments (t)

                 

FDS Avionics Corp. (dba Flight Display Systems)

    Aerospace & Defense Manufacturing                  

Second Lien Debt

      4.00%/11.00%   11/5/2014   7/1/2020   $ 6,735     $ 6,732     $ 5,802    

Revolving Loan ($30 commitment)

      4.00%/11.00%   4/12/2018   7/1/2020     254       254       254    

Common Equity (7,478 shares) (j)

        11/10/2017         748       —      
             

 

 

   

 

 

   
                7,734       6,056       2

US GreenFiber, LLC

    Building Products Manufacturing                  

Second Lien Debt (k)(p)

      7.00%/6.00%   7/3/2014   8/30/2024     14,363       14,359       4,476    

Second Lien Debt (k)(p)

      7.50%/7.50%   11/9/2018   8/30/2024     4,600       4,600       4,600    

Common Equity (2,522 units) (h)(j)

        7/3/2014         585       —      

Common Equity (425,508 units) (j)

        8/30/2019         1       —      
             

 

 

   

 

 

   
                19,545       9,076       2
             

 

 

   

 

 

   

Total Control Investments

              $ 27,279     $ 15,132       4
             

 

 

   

 

 

   

Affiliate Investments (l)

                 

FAR Research Inc. (n)

    Specialty Chemicals                  

Common Equity (1,396 units)

        3/31/2014       $ —       $ 49       0

Fiber Materials, Inc.

    Aerospace & Defense Manufacturing                  

Common Equity (10 units)

        11/30/2016         645       3,916       1

Medsurant Holdings, LLC

    Healthcare Services                  

Second Lien Debt

      13.00%/0.00%   12/18/2015   6/30/2020     8,823       8,809       8,823    

Preferred Equity (126,662 units) (h)

        4/12/2011         1,346       2,074    

Warrant (505,176 units) (h)(m)

        4/12/2011         4,516       7,472    
             

 

 

   

 

 

   
                14,671       18,369       5

Microbiology Research Associates, Inc.

    Healthcare Services                  

Subordinated Debt

      11.00%/1.50%   5/13/2015   3/13/2022     8,897       8,886       8,897    

Common Equity (1,625,731 units) (j)

        5/13/2015         1,940       2,439    
             

 

 

   

 

 

   
                10,826       11,336       3

Mirage Trailers LLC

    Utility Equipment Manufacturing                  

Second Lien Debt (k)

    (L + 11.50%) / (1.00%)   13.59%/1.50%   11/25/2015   11/25/2020     6,178       6,158       6,178    

Common Equity (2,500,000 shares) (o)

        11/25/2015         2,182       1,039    
             

 

 

   

 

 

   
                8,340       7,217       2

Pfanstiehl, Inc.

    Healthcare Products                  

Subordinated Debt

      10.50%/0.00%   3/29/2013   9/29/2022     6,208       6,200       6,208    

Common Equity (8,500 units) (j)

        3/29/2013         850       18,946    
             

 

 

   

 

 

   
                7,050       25,154       6

Pinnergy, Ltd.

    Oil & Gas Services                  

Common Equity - Class A-2 (42,500 units) (k)

        10/13/2016         3,000       33,771    

Common Equity - Class B (1,000 units) (k)

        10/13/2016         3,000       3,000    
             

 

 

   

 

 

   
                6,000       36,771       9

Steward Holding LLC (dba Steward Advanced Materials)

    Aerospace & Defense Manufacturing                  

Second Lien Debt

      12.00%/1.50%   11/12/2015   5/12/2021     7,638       7,628       7,638    

Common Equity (1,000,000 units)

        11/12/2015         1,000       1,422    
             

 

 

   

 

 

   
                8,628       9,060       2
             

 

 

   

 

 

   

Total Affiliate Investments

              $ 56,160     $ 111,872       28
             

 

 

   

 

 

   

 

7


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment       Principal           Fair     Percent of  

Investment Type (c)        

  Industry     Spread / Floor (d)   Cash/PIK   Date (f)   Maturity   Amount     Cost     Value (g)     Net Assets  

Non-control/Non-affiliate Investments

                 

Accent Food Services, LLC

    Vending Equipment Manufacturing                  

Second Lien Debt (k)(x)

      0.00%/15.00%   11/30/2016   5/30/2022   $  33,842     $  33,759     $  33,104    

Subordinated Debt (j)

      0.00%/17.00%   6/28/2019   5/30/2022     1,567       1,567       1,503    

Common Equity (7,885 units) (h)(j)

        11/30/2016         800       425    
             

 

 

   

 

 

   
                36,126       35,032       9

Allied 100 Group, Inc.

    Healthcare Products                  

Subordinated Debt (k)

      11.25%/0.00%   7/31/2019   5/26/2023     21,500       21,397       21,397    

Common Equity (1,250,000 units) (j)

        11/26/2014         1,250       1,449    
             

 

 

   

 

 

   
                22,647       22,846       6

Alzheimer’s Research and Treatment Center, LLC

    Healthcare Services                  

First Lien Debt (j)(w)

    (L + 5.75%) / (2.00%)   8.07%/0.00%   10/23/2018   10/23/2023     6,500       6,459       6,500    

Common Equity (1,000 units) (h)(j)

        10/23/2018         1,000       1,279    
             

 

 

   

 

 

   
                7,459       7,779       2

American AllWaste LLC (dba WasteWater Transport Services)

    Environmental Industries                  

Second Lien Debt (j)

    (L + 11.00%) / (2.00%)   13.10%/0.00%   5/31/2018   11/30/2023     17,503       17,405       17,503    

Preferred Equity (500 units) (h)(j)

        5/31/2018         500       535    

Preferred Equity (207 units) (h)(j)

        8/6/2019         250       250    
             

 

 

   

 

 

   
                18,155       18,288       5

Argo Turboserve Corporation

    Business Services                  

Second Lien Debt (j)

    (L + 9.75%) / (2.00%)   12.08%/0.00%   12/26/2018   6/28/2023     14,438       14,375       14,438       4

AVC Investors, LLC (dba Auveco)

    Specialty Distribution                  

Second Lien Debt (k)

      11.50%/0.00%   1/3/2018   7/3/2023     22,500       22,422       22,500    

Common Equity (5,000 units) (j)

        1/3/2018         490       745    
             

 

 

   

 

 

   
                22,912       23,245       6

B&B Roadway and Security Solutions, LLC

    Component Manufacturing                  

Second Lien Debt

      10.50%/3.50%   2/27/2018   8/27/2023     10,400       10,360       9,553    

Common Equity (50,000 units) (h)(j)

        2/27/2018         500       182    
             

 

 

   

 

 

   
                10,860       9,735       2

Bandon Fitness (Texas), Inc.

    Retail                  

First Lien Debt (j)(z)

    (L + 6.00%) / (2.25%)   8.25%/0.00%   8/9/2019   8/9/2024     10,000       9,594       9,594    

Common Equity (439,531 units) (j)

        8/9/2019         750       750    
             

 

 

   

 

 

   
                10,344       10,344       3

BCC Group Holdings, Inc.

    Information Technology Services                  

Subordinated Debt

      11.00%/1.00%   1/28/2019   4/11/2023     18,122       17,971       18,122    

Common Equity (451 shares)

        1/28/2019         1       169    

Preferred Equity (14 shares)

        1/28/2019         374       143    
             

 

 

   

 

 

   
                18,346       18,434       5

BCM One Group Holdings, Inc.

    Information Technology Services                  

Subordinated Debt (k)

      11.00%/0.00%   1/3/2019   7/3/2024     27,000       26,882       27,000    

Common Equity (2,286 shares)

        1/3/2019         2       163    

Preferred Equity (133 shares)

        1/3/2019         1,330       1,330    
             

 

 

   

 

 

   
                28,214       28,493       7

Bedford Precision Parts LLC

    Specialty Distribution                  

First Lien Debt (j)(s)

    (L + 6.25%) / (2.00%)   8.38%/0.00%   3/12/2019   3/12/2024     5,000       4,967       5,000    

Common Equity (500,000 units) (h)(j)

        3/12/2019         500       525    
             

 

 

   

 

 

   
                5,467       5,525       1

Cardboard Box LLC (dba Anthony’s Coal Fired Pizza)

    Restaurants                  

Common Equity (521,021 units) (j)

        12/15/2015         520       180       0

ControlScan, Inc.

    Information Technology Services                  

Subordinated Debt (j)

      11.00%/0.00%   7/28/2017   1/28/2023     6,750       6,730       6,750    

Common Equity (3,704 shares) (j)

        7/28/2017         4       582    

Preferred Equity (100 shares) (j)

        7/28/2017         996       996    
             

 

 

   

 

 

   
                7,730       8,328       2

CRS Solutions Holdings, LLC (dba CRS Texas)

    Business Services                  

Second Lien Debt

      10.50%/1.00%   3/14/2018   9/14/2023     9,142       9,110       9,142    

Common Equity (750,000 units) (h)(j)

        3/14/2018         750       808    
             

 

 

   

 

 

   
                9,860       9,950       2

Diversified Search LLC

    Business Services                  

First Lien Debt (k)(r)

    (L + 5.75%) / (1.75%)   8.05%/0.00%   2/7/2019   2/7/2024     15,155       14,926       15,155    

Common Equity (573 units) (h)(j)

        2/7/2019         592       654    
             

 

 

   

 

 

   
                15,518       15,809       4

EBL, LLC (EbLens)

    Retail                  

Second Lien Debt (j)

      12.00%/1.00%   7/13/2017   1/13/2023     9,460       9,405       9,460    

Common Equity (75,000 units) (j)

        7/13/2017         750       660    
             

 

 

   

 

 

   

    

                10,155       10,120       2

 

8


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment       Principal           Fair     Percent of  

Investment Type (c)        

  Industry     Spread / Floor (d)   Cash/PIK   Date (f)   Maturity   Amount     Cost     Value (g)     Net Assets  

French Transit, LLC

    Consumer Products                  

First Lien Debt (j)

    (L + 9.00%) / (2.25%)   11.32%/0.00%   6/21/2019   6/21/2024   $ 8,000     $ 7,962     $ 7,962    

Revolving Loan ($1,000 commitment) (j)(u)

    (L + 9.00%) / (2.25%)   11.32%/0.00%   6/21/2019   6/21/2024     —         (5     —      
             

 

 

   

 

 

   
                7,957       7,962       2

Global Plasma Solutions, Inc.

    Component Manufacturing                  

First Lien Debt (j)(v)

    (L + 5.00%) / (2.00%)   7.33%/0.00%   9/21/2018   9/21/2023     7,071       7,009       7,071    

Preferred Equity (947 shares) (j)

        9/21/2018         360       391    

Common Equity (947 shares) (j)

        9/21/2018         15       166    
             

 

 

   

 

 

   
                7,384       7,628       2

Gurobi Optimization, LLC

    Information Technology Services                  

Common Equity (5 shares)

        12/19/2017         1,500       3,289       1

Hilco Plastics Holdings, LLC (dba Hilco Technologies)

    Component Manufacturing                  

Second Lien Debt

      11.50%/1.50%   9/23/2016   12/31/2019     10,071       10,066       9,897    

Preferred Equity (1,000,000 units) (h)(j)

        4/18/2018         1,000       931    

Common Equity (72,507 units) (h)(j)

        9/23/2016         473       —      
             

 

 

   

 

 

   
                11,539       10,828       3

Hoonuit, LLC

    Information Technology Services                  

First Lien Debt

    (L + 9.25%) / (2.25%)   11.57%/0.00%   6/7/2019   6/7/2024     7,165       7,120       7,120    

Preferred Equity (610 units) (h)(j)

        6/20/2019   1/1/2022       250       250    
             

 

 

   

 

 

   
                7,370       7,370       2

Hub Acquisition Sub, LLC (dba Hub Pen)

    Promotional products                  

Second Lien Debt (k)

      12.25%/0.00%   3/23/2016   9/23/2021     25,000       24,940       25,000    

Common Equity (7,500 units)

        3/23/2016         263       1,424    
             

 

 

   

 

 

   
                25,203       26,424       7

Hunter Defense Technologies, Inc.

    Aerospace & Defense Manufacturing                  

First Lien Debt (j)

    (L + 7.00%) / (1.00%)   9.10%/0.00%   9/27/2018   3/29/2023     9,494       9,416       9,494       2

IBH Holdings, LLC (fka Inflexxion, Inc.)

    Business Services                  

Common Equity (150,000 units)

        6/20/2018         —         —         0

K2 Merger Agreement Agent, LLC (fka K2 Industrial Services,

Inc.) (n)

    Industrial Cleaning & Coatings                  

Second Lien Debt

      0.00%/10.00%   1/28/2019   1/28/2021     2,632       2,632       2,632       1

The Kyjen Company, LLC (dba Outward Hound)

    Consumer Products                  

Second Lien Debt (k)

      12.00%/0.00%   12/8/2017   6/8/2024     15,000       14,946       14,435    

Common Equity (765 shares) (j)

        12/8/2017         765       743    
             

 

 

   

 

 

   
                15,711       15,178       4

LNG Indy, LLC (dba Kinetrex Energy)

    Oil & Gas Distribution                  

Second Lien Debt (k)

      11.50%/0.00%   12/28/2016   11/12/2021     5,000       4,989       5,000    

Common Equity (1,000 units)

        12/28/2016         1,000       1,166    
             

 

 

   

 

 

   
                5,989       6,166       2

Marco Group International OpCo, LLC

    Industrial Cleaning & Coatings                  

Second Lien Debt

      10.50%/0.75%   7/21/2017   1/21/2023     12,202       12,166       12,202    

Common Equity (960,482 units) (h)(j)

        7/21/2017         960       930    
             

 

 

   

 

 

   
                13,126       13,132       3

Mesa Line Services, LLC

    Utilities: Services                  

Second Lien Debt (j)

      10.50%/1.50%   11/30/2017   8/1/2024     17,148       17,055       17,148    

Delayed Draw Commitment ($2,160 commitment) (i)(j)

 

    10.50%/1.00%   11/30/2017   12/31/2019     —         (3     —      

Common Equity (833 shares) (j)

        11/30/2017         1,000       1,305    
             

 

 

   

 

 

   
                18,052       18,453       5

Midwest Transit Equipment, Inc.

    Transportation services                  

Warrant (14,384 shares) (j)(m)

        6/23/2017         361       1,015    

Warrant (9.59% of Junior Subordinated Notes) (j)(q)

 

      6/23/2017         381       459    
             

 

 

   

 

 

   
                742       1,474       0

NGT Acquisition Holdings, LLC (dba Techniks Industries)

    Component Manufacturing                  

Common Equity (378 units) (j)

        5/24/2017         500       115       0

Oaktree Medical Centre, P.C. (dba Pain Management

Associates)

    Healthcare Services                  

First Lien Debt (j)(p)

      11.50%/3.00%   5/6/2014   5/31/2019     548       625       —      

First Lien Debt (j)(p)

      7.00%/15.00%   5/6/2014   5/31/2019     7,558       8,146       —      

Subordinated Debt (j)(p)

      7.00%/0.00%   3/15/2019   1/1/2020     38       38       —      

Revolving Loan (j)(p)

      11.50%/3.00%   5/6/2014   5/31/2019     2,398       2,597       —      

Revolving Loan (j)(p)

      11.50%/3.00%   12/31/2018   5/31/2019     194       194       —      

Revolving Loan (j)(p)

      11.50%/3.00%   3/11/2019   5/31/2019     1,742       1,742       —      

Revolving Loan (j)(p)

      11.50%/3.00%   8/6/2019   8/6/2019     500       500       —      
             

 

 

   

 

 

   
                13,842       —         0

OMC Investors, LLC (dba Ohio Medical Corporation)

    Healthcare Products                  

Second Lien Debt

      12.00%/0.00%   1/15/2016   7/15/2021     10,000       9,967       10,000    

Common Equity (5,000 units)

        1/15/2016         500       464    
             

 

 

   

 

 

   
                10,467       10,464       2

 

9


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment       Principal           Fair     Percent of  

Investment Type (c)        

  Industry     Spread /Floor (d)   Cash/PIK   Date (f)   Maturity   Amount     Cost     Value (g)     Net Assets  

Palisade Company, LLC

    Information Technology Services                  

Subordinated Debt (j)

      11.75%/0.00%   11/15/2018   5/15/2024   $ 6,500     $ 6,473     $ 6,500    

Common Equity (100 shares) (j)

        11/15/2018         1,000       912    
             

 

 

   

 

 

   
                7,473       7,412       2

Palmetto Moon, LLC

    Retail                  

First Lien Debt

      11.50%/2.50%   11/3/2016   10/31/2021     5,089       5,073       5,089    

Common Equity (499 units) (j)

        11/3/2016         493       35    
             

 

 

   

 

 

   
                5,566       5,124       1

Power Grid Components, Inc.

    Specialty Distribution                  

Second Lien Debt (k)

      11.00%/1.00%   4/12/2018   5/20/2023     11,368       11,328       11,368    

Preferred Equity (392 shares) (j)

        4/12/2018         392       456    

Common Equity (9,695 shares) (j)

        4/12/2018         358       415    
             

 

 

   

 

 

   
                12,078       12,239       3

Pugh Lubricants, LLC

    Specialty Distribution                  

Second Lien Debt (k)

      12.25%/0.00%   11/10/2016   5/10/2022     23,581       23,516       23,581    

Common Equity (6,125 units) (h)(j)

        11/10/2016         580       1,152    
             

 

 

   

 

 

   
                24,096       24,733       6

Revenue Management Solutions, LLC

    Information Technology Services                  

Common Equity (2,250,000 shares)

        1/4/2017         2,250       4,737       1

Rhino Assembly Company, LLC

    Specialty Distribution                  

Second Lien Debt (k)

      12.00%/1.00%   8/11/2017   2/11/2023     11,410       11,370       10,495    

Delayed Draw Commitment ($875 commitment) (i)(j)

 

    12.00%/1.00%   8/11/2017   5/17/2022     —         —         —      

Preferred Equity (8,864 units) (h)(j)

        8/11/2017         944       966    
             

 

 

   

 

 

   
                12,314       11,461       3

Road Safety Services, Inc.

    Business Services                  

Second Lien Debt

      11.25%/1.50%   9/18/2018   3/18/2024     10,183       10,143       9,696    

Common Equity (655 units)

        9/18/2018         621       633    
             

 

 

   

 

 

   
                10,764       10,329       2

Rohrer Corporation

    Packaging                  

Subordinated Debt (j)

      10.50%/1.00%   10/1/2018   4/1/2024     13,839       13,783       13,839    

Common Equity (400 shares)

        7/18/2016         780       809    
             

 

 

   

 

 

   
                14,563       14,648       3

SES Investors, LLC (dba SES Foam)

    Building Products Manufacturing                  

Second Lien Debt

      13.00%/0.00%   9/8/2016   12/29/2020     3,095       3,079       3,095    

Common Equity (6,000 units) (h)(j)

        9/8/2016         600       825    
             

 

 

   

 

 

   
                3,679       3,920       1

Simplex Manufacturing Co.

    Aerospace & Defense Manufacturing                  

Subordinated Debt

      14.00%/0.00%   10/31/2007   2/15/2020     4,050       4,050       4,050    

Warrant (29 shares) (m)

        10/31/2007         1,155       3,857    
             

 

 

   

 

 

   
                5,205       7,907       2

Software Technology, LLC

    Information Technology Services                  

Subordinated Debt (k)

      11.00%/0.00%   12/23/2016   6/23/2023     10,000       9,970       10,000    

Common Equity (12 shares)

        12/23/2016         1,291       1,518    
             

 

 

   

 

 

   
                11,261       11,518       3

Specialized Elevator Services Holdings, LLC

    Business Services                  

First Lien Debt (j)(y)

    (L + 5.25%) / (2.00%)   7.58%/0.00%   5/7/2019   5/3/2024     7,080       6,980       6,980    

Common Equity (500 units) (j)

        5/8/2019         500       500    
             

 

 

   

 

 

   
                7,480       7,480       2

SpendMend LLC

    Business Services                  

Second Lien Debt (k)

      11.00%/0.75%   1/8/2018   7/8/2023     10,469       10,431       10,469    

Common Equity (1,000,000 units)

        1/8/2018         1,000       1,210    
             

 

 

   

 

 

   
                11,431       11,679       3

 

10


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment       Principal           Fair     Percent of  

Investment Type (c)        

  Industry     Spread / Floor (d)   Cash/PIK   Date (f)   Maturity   Amount     Cost     Value (g)     Net Assets  

Thermoforming Technology Group LLC (dba Brown Machine

Group) (n)

    Capital Equipment Manufacturing                  

Common Equity (3,760 units) (h)(j)

        3/14/2016       $ —       $ 10       0

TransGo, LLC

    Component Manufacturing                  

Common Equity (1,000 units)

        2/28/2017         998       1,004       0

The Tranzonic Companies

    Specialty Distribution                  

Subordinated Debt (j)

      10.00%/1.50%   3/27/2018   3/27/2025   $ 6,896       6,841       6,896    

Preferred Equity (5,653 units) (j)

        3/27/2018         565       643    

Common Equity (1 units) (j)

        3/27/2018         —         —      
             

 

 

   

 

 

   
                7,406       7,539       2

UBEO, LLC

    Business Services                  

Subordinated Debt (j)

      11.00%/0.00%   4/3/2018   10/3/2024     13,893       13,788       13,637    

Common Equity (705,000 units) (h)(j)

        4/3/2018         705       779    
             

 

 

   

 

 

   
                14,493       14,416       3

United Biologics, LLC

    Healthcare Services                  

Preferred Equity (98,377 units) (h)(j)

        4/1/2012         1,008       33    

Warrant (57,469 units) (m)

        3/5/2012         566       28    
             

 

 

   

 

 

   
                1,574       61       0

US Pack Logistics LLC

    Transportation services                  

Second Lien Debt (k)

      12.00%/3.75%   3/27/2015   3/28/2023     7,587       7,578       7,587    

Preferred Equity (9,458 units) (h)(j)

        9/28/2017         900       944    

Common Equity (5,833 units) (h)(j)

        3/27/2015         527       —      
             

 

 

   

 

 

   
                9,005       8,531       2

Vanguard Dealer Services, L.L.C. (n)

    Business Services                  

Common Equity (6,000 units)

        7/30/2015         —         22    

Common Equity (2,380 units) (j)

        2/2/2018         —         9    
             

 

 

   

 

 

   
                —         31       0

Virginia Tile Company, LLC

    Specialty Distribution                  

Second Lien Debt (k)

      12.25%/0.00%   12/19/2014   4/7/2022     12,000       11,987       12,000    

Common Equity (17 units)

        12/19/2014         342       962    
             

 

 

   

 

 

   
                12,329       12,962       3

Wheel Pros, Inc.

    Specialty Distribution                  

Second Lien Debt (j)

    (L + 8.50%) / (0.00%)   10.54%/0.00%   5/17/2019   4/4/2026     20,000       19,811       19,811    

Preferred Equity (694,444 units) (j)

        5/15/2019         1,500       1,500    
             

 

 

   

 

 

   
                21,311       21,311       5

Worldwide Express Operations, LLC

    Transportation services                  

Second Lien Debt (j)

    (L + 8.00%) / (1.00%)   10.17%/0.00%   2/27/2017   2/3/2025     20,000       19,727       20,000    

Common Equity (4,000 units) (h)(j)

        2/27/2017         2,956       4,231    
             

 

 

   

 

 

   
                22,683       24,231       6
             

 

 

   

 

 

   

Total Non-control/Non-affiliate Investments

              $ 608,077     $ 602,438       149
             

 

 

   

 

 

   

Total Investments

              $ 691,516     $ 729,442       181
             

 

 

   

 

 

   

 

(a)

See Note 3 to the consolidated financial statements for portfolio composition by geographic location.

(b)

Equity ownership may be held in shares or units of companies related to the portfolio companies.

(c)

All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted.

(d)

Variable rate investments bear interest at a rate indexed to LIBOR (L), which is reset monthly, bimonthly, quarterly, or semi-annually. Certain variable rate investments also include a LIBOR interest rate floor. For each investment, the Company has provided the spread over the reference rate and the LIBOR floor, if any, as of September 30, 2019.

(e)

Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of September 30, 2019. Generally, payment-in-kind interest can be paid-in-kind or all in cash.

(f)

Investment date represents the date of the initial investment in the security.

(g)

The Company’s investment portfolio is comprised entirely of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are not available. Therefore, the Company values all of its portfolio investments at fair value, as determined in good faith by the board of directors, using significant unobservable Level 3 inputs.

 

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Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands, except shares)

 

(h)

Investment is held by a Taxable Subsidiary of the Company.

(i)

The disclosed commitment represents the unfunded amount as of September 30, 2019. The Company is earning 0.50% interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate which will be earned if the commitment is funded.

(j)

Investment pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company’s obligations under the Credit Facility (see Note 6 to the consolidated financial statements).

(k)

The portion of the investment not held by the Funds is pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company’s obligations under the Credit Facility (see Note 6 to the consolidated financial statements).

(l)

As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of this portfolio company because it owns 5% or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was an Affiliated Person are detailed in Note 3 to the consolidated financial statements.

(m)

Warrants entitle the Company to purchase a predetermined number of shares or units of common equity, and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

(n)

Investment in portfolio company that has sold its operations and is in the process of winding down.

(o)

Income producing. Maturity date, if any, represents mandatory redemption date.

(p)

Investment was on non-accrual status as of September 30, 2019, meaning the Company has ceased recognizing interest income on the investment.

(q)

Warrant entitles the Company to purchase 9.59% of the outstanding principal of Junior Subordinated Notes prior to exercise, and is non-income producing.

(r)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.82% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(s)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.01% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(t)

As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control” this portfolio company because it owns 25% or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are detailed in Note 3 to the consolidated financial statements.

(u)

The disclosed commitment represents the unfunded amount as of September 30, 2019. The Company is earning 0.75% interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate earned on the outstanding, funded balance of the commitment.

(v)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.38% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(w)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.06% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(x)

For the nine months ended September 30, 2019, all interest was treated as PIK interest and capitalized to the principal balance of the investment.

(y)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.75% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(z)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.38% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

See Notes to Consolidated Financial Statements (unaudited).

 

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Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2018

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment       Principal           Fair     Percent of  

Investment Type (c)         

  Industry     Spread / Floor (d)   Cash/PIK   Date (f)   Maturity   Amount     Cost     Value (g)     Net Assets  

Control Investments (s)

                 

FDS Avionics Corp. (dba Flight Display Systems)

    Aerospace & Defense Manufacturing                  

Second Lien Debt

      4.00%/11.00%   11/5/2014   4/1/2020   $ 6,203     $ 6,196     $ 5,397    

Revolving Loan ($50 commitment)

      4.00%/11.00%   4/12/2018   4/1/2020     215       215       215    

Common Equity (7,478 shares) (j)

        11/10/2017         748       —      
             

 

 

   

 

 

   
                7,159       5,612       2

K2 Industrial Services, Inc.

    Industrial Cleaning & Coatings                  

Second Lien Debt (p)

      0.00%/15.00%   10/25/2016   6/25/2020     10,453       10,423       10,453    

Second Lien Debt (p)

      0.00%/12.00%   10/25/2016   6/25/2020     2,261       2,255       1,155    

Second Lien Debt (p)

      0.00%/19.00%   10/17/2018   6/25/2020     1,600       1,592       1,600    

Common Equity (1,673 shares)

        9/30/2016         1,268       —      
             

 

 

   

 

 

   
                15,538       13,208       3
             

 

 

   

 

 

   

Total Control Investments

              $ 22,697     $ 18,820       5
             

 

 

   

 

 

   

Affiliate Investments (l)

                 

FAR Research Inc. (n)

    Specialty Chemicals                  

Common Equity (1,396 units)

        3/31/2014       $ —       $ 116       0

Fiber Materials, Inc.

    Aerospace & Defense Manufacturing                  

Second Lien Debt

      12.00%/0.00%   11/30/2016   5/30/2022   $ 4,044       4,032       4,044    

Common Equity (10 units)

        11/30/2016         1,000       2,104    
             

 

 

   

 

 

   
                5,032       6,148       2

Medsurant Holdings, LLC

    Healthcare Services                  

Second Lien Debt

      13.00%/0.00%   12/18/2015   6/30/2020     8,823       8,795       8,823    

Preferred Equity (126,662 units) (h)

        4/12/2011         1,346       2,703    

Warrant (505,176 units) (h)(m)

        4/12/2011         4,516       9,820    
             

 

 

   

 

 

   
                14,657       21,346       5

Microbiology Research Associates, Inc.

    Healthcare Services                  

Subordinated Debt

      11.00%/1.50%   5/13/2015   3/13/2022     8,798       8,783       8,122    

Common Equity (1,625,731 units) (j)

        5/13/2015         1,938       1,924    
             

 

 

   

 

 

   
                10,721       10,046       3

Mirage Trailers LLC

    Utility Equipment Manufacturing                  

Second Lien Debt (k)

    (L + 11.50%) / (1.00%)   13.85%/1.50%   11/25/2015   11/25/2020     6,109       6,075       6,109    

Common Equity (2,500,000 shares) (o)

        11/25/2015         2,179       3,174    
             

 

 

   

 

 

   
                8,254       9,283       2

Pfanstiehl, Inc.

    Healthcare Products                  

Subordinated Debt

      10.50%/0.00%   3/29/2013   9/29/2022     6,208       6,197       6,208    

Common Equity (8,500 units) (j)

        3/29/2013         850       13,815    
             

 

 

   

 

 

   
                7,047       20,023       5

Pinnergy, Ltd.

    Oil & Gas Services                  

Second Lien Debt (k)

      12.00%/0.00%   10/13/2016   1/24/2020     4,000       3,993       4,000    

Common Equity - Class A-2 (42,500 units) (k)

        10/13/2016         3,000       33,878    

Common Equity - Class B (1,000 units) (k)

        10/13/2016         3,000       3,000    
             

 

 

   

 

 

   
                9,993       40,878       10

Steward Holding LLC (dba Steward Advanced

Materials)

    Aerospace & Defense Manufacturing                  

Second Lien Debt

      12.00%/1.50%   11/12/2015   5/12/2021     7,553       7,538       7,553    

Common Equity (1,000,000 units)

        11/12/2015         1,000       1,357    
             

 

 

   

 

 

   
                8,538       8,910       2

Trantech Radiator Products, Inc.

    Utility Equipment Manufacturing                  

Second Lien Debt (j)

      13.75%/0.00%   11/4/2011   12/31/2019     5,994       5,994       5,994    

Common Equity (6,875 shares) (j)

        11/4/2011         688       307    
             

 

 

   

 

 

   
                6,682       6,301       2
             

 

 

   

 

 

   

Total Affiliate Investments

              $ 70,924     $ 123,051       31
             

 

 

   

 

 

   

 

13


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2018

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index     Rate (e)     Investment           Principal           Fair     Percent of  

Investment Type (c)         

  Industry     Spread / Floor (d)     Cash/PIK     Date (f)     Maturity     Amount     Cost     Value (g)     Net Assets  

Non-control/Non-affiliate Investments

                 

Accent Food Services, LLC

    Vending Equipment Manufacturing                  

Second Lien Debt (k)

        10.00%/5.00%       11/30/2016       5/30/2022     $ 30,312     $ 30,205     $ 28,879    

Common Equity (7,885 units) (h)(j)

          11/30/2016           800       462    
             

 

 

   

 

 

   
                31,005       29,341       7

Allied 100 Group, Inc.

    Healthcare Products                  

Common Equity (1,250,000 units) (j)

          11/26/2014           1,250       1,744       0

Alzheimer’s Research and Treatment Center

    Healthcare Services                  

First Lien Debt (j)(v)

      (L + 5.75%) / (2.00%)       8.23%/0.00%       10/23/2018       10/23/2023       6,500       6,451       6,451    

Common Equity (1,000 units) (h)(j)

          10/23/2018           1,000       1,000    
             

 

 

   

 

 

   
                7,451       7,451       2

American AllWaste LLC (dba WasteWater

Transport Services)

    Environmental Industries                  

Second Lien Debt (j)

        11.00%/1.50%       5/31/2018       11/30/2023       11,826       11,765       11,826    

Delayed Draw Commitment ($2,276 commitment) (i)(j)

 

      11.00%/1.50%       5/31/2018       11/30/2019       —         (7     —      

Preferred Equity (500 units) (j)

          5/31/2018           500       615    
             

 

 

   

 

 

   
                12,258       12,441       3

Argo Turboserve Corporation

    Business Services                  

Second Lien Debt (j)()

      (L + 9.75%) / (2.00%)       12.56%/0.00%       12/26/2018       6/28/2023       15,000       14,925       14,925       4

AVC Investors, LLC (dba Auveco)

    Specialty Distribution                  

Second Lien Debt (k)

        11.50%/0.00%       1/3/2018       7/3/2023       22,500       22,406       22,500    

Common Equity (5,000 units) (j)

          1/3/2018           500       682    
             

 

 

   

 

 

   
                22,906       23,182       6

B&B Roadway and Security Solutions, LLC

    Component Manufacturing                  

Second Lien Debt

        10.50%/1.50%       2/27/2018       8/27/2023       10,129       10,080       9,524    

Common Equity (50,000 units) ($133 commitment) (h)(j)

 

        2/27/2018           500       304    
             

 

 

   

 

 

   
                10,580       9,828       2

Cardboard Box LLC (dba Anthony’s Coal Fired Pizza)

    Restaurants                  

Common Equity (521,021 units) (j)

          12/15/2015           521       108       0

Consolidated Infrastructure Group Holdings, LP

    Business Services                  

Common Equity (298 units)

          11/30/2017           378       49       0

ControlScan, Inc.

    Information Technology Services                  

Subordinated Debt (j)

        11.00%/0.00%       7/28/2017       1/28/2023       6,750       6,725       6,750    

Common Equity (3,704 shares) (j)

          7/28/2017           4       620    

Preferred Equity (100 shares) (j)

          7/28/2017           996       996    
             

 

 

   

 

 

   
                7,725       8,366       2

CRS Solutions Holdings, LLC (dba CRS Texas) Second

Lien Debt

    Business Services         10.50%/1.00%       3/14/2018       9/14/2023       9,073       9,035       9,073    

Common Equity (750,000 units) (j)

          3/14/2018           750       757    
             

 

 

   

 

 

   
                9,785       9,830       2

EBL, LLC (EbLens)

    Retail                  

Second Lien Debt (j)

        12.00%/1.00%       7/13/2017       1/13/2023       9,389       9,321       9,389    

Common Equity (75,000 units) (j)

          7/13/2017           750       742    
             

 

 

   

 

 

   
                10,071       10,131       3

Global Plasma Solutions, Inc.

    Component Manufacturing                  

First Lien Debt (j)(u)

      (L + 5.00%) / (2.00%)       7.40%/0.00%       9/21/2018       9/21/2023       8,703       8,629       8,629    

Preferred Equity (947 shares) (j)

          9/21/2018           360       360    

Common Equity (947 shares) (j)

          9/21/2018           15       15    
             

 

 

   

 

 

   
                9,004       9,004       2

Gurobi Optimization, LLC

    Information Technology Services                  

Subordinated Debt (k)

        11.00%/0.00%       12/19/2017       6/19/2023       20,000       19,920       20,400    

Common Equity (5 shares)

          12/19/2017           1,500       2,323    
             

 

 

   

 

 

   
                21,420       22,723       6

Hilco Plastics Holdings, LLC (dba Hilco Technologies)

    Component Manufacturing                  

Second Lien Debt

        11.50%/1.50%       9/23/2016       12/31/2019       9,940       9,922       9,439    

Preferred Equity (1,000,000 units) (h)(j)

          4/18/2018           1,000       1,112    

Common Equity (72,507 units) (h)(j)

          9/23/2016           473       227    
             

 

 

   

 

 

   
                11,395       10,778       3

 

14


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2018

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment       Principal           Fair     Percent of  

Investment Type (c)         

  Industry     Spread / Floor (d)   Cash/PIK   Date (f)   Maturity   Amount     Cost     Value (g)     Net Assets  

Hub Acquisition Sub, LLC (dba Hub Pen)

    Promotional products                  

Second Lien Debt (k)

      12.25%/0.00%   3/23/2016   9/23/2021   $ 25,000     $ 24,918     $ 25,000    

Common Equity (7,500 units)

        3/23/2016         249       1,417    
             

 

 

   

 

 

   
                25,167       26,417       7

Hunter Defense Technologies, Inc.

    Aerospace & Defense Manufacturing                  

First Lien Debt (j)

    (L + 7.00%) / (1.00%)   9.80%/0.00%   9/27/2018   3/29/2023     9,747       9,653       9,653       2

IBH Holdings, LLC (fka Inflexxion, Inc.)

    Business Services                  

Common Equity (150,000 units)

        6/20/2018         —         —         0

inthinc Technology Solutions, Inc. (n)

    Information Technology Services                  

Royalty Rights

        10/15/2015   4/24/2020       185       —         0

The Kyjen Company, LLC (dba Outward Hound)

    Consumer Products                  

Second Lien Debt (k)

      12.00%/0.00%   12/8/2017   6/8/2024     15,000       14,937       13,950    

Common Equity (765 shares) (j)

        12/8/2017         765       754    
             

 

 

   

 

 

   
                15,702       14,704       4

LNG Indy, LLC (dba Kinetrex Energy)

    Oil & Gas Distribution                  

Second Lien Debt (k)

      11.50%/0.00%   12/28/2016   9/28/2021     5,000       4,985       5,000    

Common Equity (1,000 units)

        12/28/2016         1,000       1,561    
             

 

 

   

 

 

   
                5,985       6,561       2

Marco Group International OpCo, LLC

    Industrial Cleaning & Coatings                  

Second Lien Debt

      10.50%/0.75%   7/21/2017   1/21/2023     12,133       12,089       12,133    

Common Equity (750,000 units) (h)(j)

        7/21/2017         750       800    
             

 

 

   

 

 

   
                12,839       12,933       3

Mesa Line Services, LLC

    Utilities: Services                  

Second Lien Debt (j)

      10.50%/0.50%   11/30/2017   5/31/2023     10,014       9,963       10,014    

Delayed Draw Commitment ($3,160 commitment) (i)(j)

      10.50%/0.50%   11/30/2017   5/31/2019     —         (4     —      

Common Equity (500 shares) (j)

        11/30/2017         500       676    
             

 

 

   

 

 

   
                10,459       10,690       3

Midwest Transit Equipment, Inc.

    Transportation services                  

Warrant (14,384 shares) (j)(m)

        6/23/2017         361       436    

Warrant (9.59% of Junior Subordinated Notes) (j)(q)

        6/23/2017         381       398    
             

 

 

   

 

 

   
                742       834       0

New Era Technology, Inc.

    Information Technology Services                  

Common Equity (197,369 shares) (j)

        3/3/2017         750       990       0

NGT Acquisition Holdings, LLC (dba Techniks Industries)

    Component Manufacturing                  

Subordinated Debt

      12.50%/2.00%   5/24/2017   3/21/2022     11,579       11,542       10,460    

Common Equity (378 units) (j)

        5/24/2017         500       72    
             

 

 

   

 

 

   
                12,042       10,532       3
Oaktree Medical Centre, P.C. (dba Pain Management Associates)     Healthcare Services                  

First Lien Debt (j)(t)

      14.50%/0.00%   5/6/2014   1/1/2018     571       649       566    

First Lien Debt (j)(t)

      10.00%/12.00%   5/6/2014   1/1/2018     7,751       8,338       8,133    

Revolving Loan (j)(t)

      14.50%/0.00%   5/6/2014   1/1/2018     2,500       2,699       2,490    

Revolving Loan (j)(t)

      14.50%/0.00%   12/31/2018   1/31/2019     200       200       200    
             

 

 

   

 

 

   
                11,886       11,389       3

OMC Investors, LLC (dba Ohio Medical Corporation)

    Healthcare Products                  

Second Lien Debt

      12.00%/0.00%   1/15/2016   7/15/2021     10,000       9,954       8,748    

Common Equity (5,000 units)

        1/15/2016         500       139    
             

 

 

   

 

 

   
                10,454       8,887       2

Palisade Company, LLC

    Information Technology Services                  

Subordinated Debt (j)

      11.75%/0.00%   11/15/2018   5/15/2024     6,500       6,468       6,468    

Common Equity (100 shares) (j)

        11/15/2018         1,000       1,000    
             

 

 

   

 

 

   
                7,468       7,468       2

Palmetto Moon, LLC

    Retail                  

First Lien Debt

      11.50%/2.50%   11/3/2016   10/31/2021     5,512       5,490       5,512    

Common Equity (499 units) (j)

        11/3/2016         494       108    
             

 

 

   

 

 

   
                5,984       5,620       1

 

15


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2018

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment       Principal           Fair     Percent of  

Investment Type (c)         

  Industry     Spread / Floor (d)   Cash/PIK   Date (f)   Maturity   Amount     Cost     Value (g)     Net Assets  

Power Grid Components, Inc.

    Specialty Distribution                  

Second Lien Debt (k)

      11.00%/1.00%   4/12/2018   5/20/2023   $ 11,282     $ 11,234     $ 11,282    

Preferred Equity (392 shares) (j)

        4/12/2018         392       422    

Common Equity (9,695 shares) (j)

        4/12/2018         358       260    
             

 

 

   

 

 

   
                11,984       11,964       3

Pugh Lubricants, LLC

    Specialty Distribution                  

Second Lien Debt (k)

      12.25%/0.00%   11/10/2016   5/10/2022     18,581       18,523       18,581    

Common Equity (6,125 units) (h)(j)

        11/10/2016         612       1,000    
             

 

 

   

 

 

   
                19,135       19,581       5

Revenue Management Solutions, LLC

    Information Technology Services                  

Common Equity (2,250,000 shares)

        1/4/2017         2,250       3,888       1

Rhino Assembly Company, LLC

    Specialty Distribution                  

Second Lien Debt (k)

      12.00%/1.00%   8/11/2017   2/11/2023     11,324       11,275       11,324    

Delayed Draw Commitment ($875 commitment) (i)(j)

 

    12.00%/1.00%   8/11/2017   5/17/2022     —         —         —      

Preferred Equity (8,864 units) (j)(r)

        8/11/2017         945       1,272    
             

 

 

   

 

 

   
                12,220       12,596       3

Road Safety Services, Inc.

    Business Services                  

Second Lien Debt

      11.25%/1.50%   9/18/2018   3/18/2024     10,068       10,022       10,022    

Common Equity (655 units)

        9/18/2018         621       621    
             

 

 

   

 

 

   
                10,643       10,643       2

Rohrer Corporation

    Packaging                  

Subordinated Debt (j)

      10.50%/1.00%   10/1/2018   4/1/2024     13,735       13,670       13,670    

Common Equity (400 shares)

        7/18/2016         780       724    
             

 

 

   

 

 

   
                14,450       14,394       4

SES Investors, LLC (dba SES Foam)

    Building Products Manufacturing                  

Second Lien Debt

      15.00%/0.00%   9/8/2016   12/29/2020     3,095       3,069       2,703    

Common Equity (6,000 units) (h)(j)

        9/8/2016         600       167    
             

 

 

   

 

 

   
                3,669       2,870       1

Simplex Manufacturing Co.

    Aerospace & Defense Manufacturing                  

Subordinated Debt

      14.00%/0.00%   10/31/2007   7/31/2019     4,050       4,050       4,050    

Warrant (29 shares) (m)

        10/31/2007         1,155       3,036    
             

 

 

   

 

 

   
                5,205       7,086       2

Software Technology, LLC

    Information Technology Services                  

Subordinated Debt (k)

      11.00%/0.00%   12/23/2016   6/23/2023     10,000       9,964       10,000    

Common Equity (12 shares)

        12/23/2016         1,291       1,364    
             

 

 

   

 

 

   
                11,255       11,364       3

SpendMend LLC

    Business Services                  

Second Lien Debt (k)

      11.00%/1.00%   1/8/2018   7/8/2023     10,401       10,355       10,401    

Common Equity (1,000,000 units)

        1/8/2018         1,000       1,179    
                11,355       11,580       3

The Wolf Organization, LLC

    Building Products Manufacturing                  

Common Equity (175 shares)

        5/29/2015         753       3,711       1

Thermoforming Technology Group LLC (dba

                 

Brown Machine Group) (n)

    Capital Equipment Manufacturing                  

Common Equity (3,760 units) (h)(j)

        3/14/2016         —         10       0

Tile Redi, LLC

    Building Products Manufacturing                  

First Lien Debt (j)

    (L + 10.00%) / (1.00%)   12.80%/0.00%   7/18/2017   6/16/2022     10,194       10,122       10,156       2

TransGo, LLC

    Component Manufacturing                  

Second Lien Debt

      13.25%/0.00%   2/28/2017   8/28/2022     9,500       9,468       9,500    

Common Equity (1,000 units)

        2/28/2017         998       905    
             

 

 

   

 

 

   
                10,466       10,405       3

The Tranzonic Companies

    Specialty Distribution                  

Subordinated Debt (j)

      10.00%/1.50%   3/27/2018   3/27/2025     5,664       5,614       4,997    

Preferred Equity (5,000 units) (j)

        3/27/2018         500       391    

Common Equity (1 units) (j)

        3/27/2018         —         —