| 10-Q | 2020-07-31 | Filed 2020-09-09 |
| 10-Q | 2020-04-30 | Filed 2020-06-09 |
| 10-Q | 2020-01-31 | Filed 2020-03-09 |
| 10-K | 2019-10-31 | Filed 2020-01-14 |
| 10-Q | 2019-07-31 | Filed 2019-09-09 |
| 10-Q | 2019-04-30 | Filed 2019-06-10 |
| 10-Q | 2019-01-31 | Filed 2019-03-11 |
| 10-K | 2018-10-31 | Filed 2019-01-14 |
| 10-Q | 2018-07-31 | Filed 2018-09-10 |
| 10-Q | 2018-04-30 | Filed 2018-06-11 |
| 10-Q | 2018-01-31 | Filed 2018-03-12 |
| 10-K | 2017-10-31 | Filed 2018-01-16 |
| 10-Q | 2017-07-31 | Filed 2017-09-11 |
| 10-Q | 2017-04-30 | Filed 2017-06-08 |
| 10-Q | 2017-01-31 | Filed 2017-03-13 |
| 10-K | 2016-10-31 | Filed 2017-01-17 |
| 10-Q | 2016-07-31 | Filed 2016-09-09 |
| 10-Q | 2016-04-30 | Filed 2016-08-29 |
| 10-Q | 2016-01-31 | Filed 2016-05-16 |
| 10-K | 2015-10-31 | Filed 2016-05-16 |
| 10-Q | 2015-07-31 | Filed 2016-01-29 |
| 10-Q | 2015-01-31 | Filed 2015-12-01 |
| 10-K | 2014-10-31 | Filed 2015-10-15 |
| 10-Q | 2014-10-31 | Filed 2015-12-01 |
| 10-Q | 2014-07-31 | Filed 2014-09-09 |
| 10-Q | 2014-04-30 | Filed 2014-06-06 |
| 10-Q | 2014-01-31 | Filed 2014-03-12 |
| 10-K | 2013-10-31 | Filed 2014-01-13 |
| 10-Q | 2013-07-31 | Filed 2013-09-09 |
| 10-Q | 2013-04-30 | Filed 2013-06-10 |
| 10-Q | 2013-01-31 | Filed 2013-03-07 |
| 10-K | 2012-10-31 | Filed 2012-12-27 |
| 10-Q | 2012-07-31 | Filed 2012-09-10 |
| 10-Q | 2012-04-30 | Filed 2012-06-11 |
| 10-Q | 2012-01-31 | Filed 2012-03-12 |
| 10-K | 2011-10-31 | Filed 2012-01-12 |
| 10-Q | 2011-07-31 | Filed 2011-09-07 |
| 10-Q | 2011-04-30 | Filed 2011-06-02 |
| 10-Q | 2011-01-31 | Filed 2011-03-08 |
| 10-K | 2010-10-31 | Filed 2010-12-21 |
| 10-Q | 2010-07-31 | Filed 2010-09-09 |
| 10-Q | 2010-04-30 | Filed 2010-06-01 |
| 10-Q | 2010-01-31 | Filed 2010-03-11 |
| 8-K | 2020-09-09 | Earnings, Regulation FD, Other Events, Exhibits |
| 8-K | 2020-08-31 | Enter Agreement, Off-BS Arrangement |
| 8-K | 2020-08-10 | Enter Agreement, Regulation FD, Exhibits |
| 8-K | 2020-07-28 | Officers |
| 8-K | 2020-07-15 | Shareholder Vote, Other Events |
| 8-K | 2020-05-27 | |
| 8-K | 2020-04-16 | |
| 8-K | 2020-03-24 | |
| 8-K | 2020-02-25 | |
| 8-K | 2019-08-30 | |
| 8-K | 2019-06-24 | |
| 8-K | 2019-06-19 | |
| 8-K | 2019-04-30 | |
| 8-K | 2019-04-19 | |
| 8-K | 2019-01-29 | |
| 8-K | 2018-12-07 | |
| 8-K | 2018-10-30 | |
| 8-K | 2018-10-11 | |
| 8-K | 2018-09-17 | |
| 8-K | 2018-08-10 | |
| 8-K | 2018-02-26 | |
| 8-K | 2018-01-04 |
| Part I. Consolidated Financial Information |
| Item 1. Consolidated Financial Statements |
| 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 | tm2030183d1_ex31-1.htm |
| EX-32.1 | tm2030183d1_ex32-1.htm |
| Balance Sheet | Income Statement | Cash Flow |
|---|---|---|
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended July 31, 2020
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number 814-00201
MVC Capital, Inc.
(Exact name of the registrant as specified in its charter)
| DELAWARE | 94-3346760 | |
| (State or other jurisdiction of | (I.R.S. Employer | |
| incorporation or organization) | Identification No.) |
| 287 Bowman Avenue | ||
| 2nd Floor | ||
| Purchase, New York | ||
| (Address of principal | 10577 | |
| executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (914) 701-0310
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 | MVC | New York Stock Exchange |
| Senior Notes | MVCD | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ 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 þ 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 þ Non-accelerated filer ¨ Smaller reporting company ¨ Emerging Growth Company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ
There were 17,725,118 shares of the registrant’s common stock, $.01 par value, outstanding as of September 9, 2020.
MVC Capital, Inc.
(A Delaware Corporation)
Index
Part I. Consolidated Financial Information
Item 1. Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets
| July 31, | October 31, | |||||||
| 2020 | 2019 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Assets | ||||||||
| Cash | $ | 172,717 | $ | 1,321,648 | ||||
| Restricted cash (cost $1,500,279 and $0) | 1,500,279 | - | ||||||
| Restricted cash equivalents (cost $3,545,234 and $5,009,091) | 3,545,234 | 5,009,091 | ||||||
| Cash equivalents (cost $46,655,085 and $5,368,190) | 46,655,085 | 5,368,190 | ||||||
| Investments at fair value | ||||||||
| Non-control/Non-affiliated investments (cost $175,567,727 and $246,228,806) | 146,947,497 | 229,322,498 | ||||||
| Affiliate investments (cost $82,754,183 and $81,465,911) | 42,903,991 | 61,851,896 | ||||||
| Control investments (cost $79,378,267 and $87,972,462) | 30,999,319 | 49,070,701 | ||||||
| Total investments at fair value (cost $337,700,177 and $415,667,180) | 220,850,807 | 340,245,095 | ||||||
| Escrow receivables, net of reserves | - | 1,135,000 | ||||||
| Dividends and interest receivables, net of reserves | 6,148,063 | 4,273,018 | ||||||
| Deferred financing fees | 391,832 | 614,586 | ||||||
| Fee and other receivables | 1,912,146 | 4,013,714 | ||||||
| Prepaid expenses | 393,452 | 182,298 | ||||||
| Prepaid taxes | 37 | - | ||||||
| Total assets | $ | 281,569,652 | $ | 362,162,640 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Liabilities | ||||||||
| Senior notes II, net of deferred financing fees | $ | 93,574,104 | $ | 112,703,490 | ||||
| Revolving credit facility IV | - | 15,100,000 | ||||||
| Incentive compensation payable | 1,527,849 | 1,527,849 | ||||||
| Professional fees payable | 496,806 | 241,518 | ||||||
| Management fee payable | 679,829 | 1,038,431 | ||||||
| Accrued expenses and liabilities | 228,534 | 770,205 | ||||||
| Interest payable | 263,890 | 670,163 | ||||||
| Management fee payable - Asset Management | 17,219 | 395,435 | ||||||
| Consulting fees payable | 393,998 | 360,452 | ||||||
| Portfolio fees payable - Asset Management | 896,293 | 668,849 | ||||||
| Guarantees/Letters of Credit | 3,025,326 | 726,649 | ||||||
| Taxes payable | - | 915 | ||||||
| Provision for incentive compensation (Note 11) | - | - | ||||||
| Total liabilities | 101,103,848 | 134,203,956 | ||||||
| Commitments and Contingencies (Note 9) | ||||||||
| Shareholders' equity | ||||||||
| Common stock, $0.01 par value; 150,000,000 shares authorized; 28,304,448 shares issued and 17,725,118 and 17,725,118 shares outstanding as of July 31, 2020 and October 31, 2019, respectively | 283,044 | 283,044 | ||||||
| Additional paid-in-capital | 406,258,172 | 406,258,172 | ||||||
| Accumulated overdistributed earnings | (119,562,543 | ) | (72,069,663 | ) | ||||
| Treasury stock, at cost, 10,579,330 and 10,579,330 shares held, respectively | (106,512,869 | ) | (106,512,869 | ) | ||||
| Total shareholders' equity | 180,465,804 | 227,958,684 | ||||||
| Total liabilities and shareholders' equity | $ | 281,569,652 | $ | 362,162,640 | ||||
| Net asset value per share | $ | 10.18 | $ | 12.86 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
3
Consolidated Statements of Operations
(Unaudited)
| For the Nine Month Period | For the Nine Month Period | |||||||
| November 1, 2019 to | November 1, 2018 to | |||||||
| July 31, 2020 | July 31, 2019 | |||||||
| Operating Income: | ||||||||
| Dividend income | ||||||||
| Non-control/Non-affiliated investments | $ | - | $ | 395,543 | ||||
| Affiliate investments (net of foreign taxes withheld of $0 and $154,269, respectively) | - | 698,107 | ||||||
| Control investments | - | 542,693 | ||||||
| Total dividend income | - | 1,636,343 | ||||||
| Payment-in-kind dividend income | ||||||||
| Non-control/Non-affiliated investments | - | 1,196,260 | ||||||
| Total payment-in-kind dividend income | - | 1,196,260 | ||||||
| Interest income | ||||||||
| Non-control/Non-affiliated investments | 13,917,627 | 14,347,352 | ||||||
| Affiliate investments | - | - | ||||||
| Control investments | 369,021 | 325,284 | ||||||
| Total interest income | 14,286,648 | 14,672,636 | ||||||
| Payment-in-kind/Deferred interest income | ||||||||
| Non-control/Non-affiliated investments | 5,573,486 | 3,307,666 | ||||||
| Affiliate investments | 394,836 | 581,846 | ||||||
| Control investments | 262,029 | 379,338 | ||||||
| Total payment-in-kind/Deferred interest income | 6,230,351 | 4,268,850 | ||||||
| Fee income | ||||||||
| Non-control/Non-affiliated investments | 59,298 | 89,299 | ||||||
| Total fee income | 59,298 | 89,299 | ||||||
| Fee income - Asset Management 1 | ||||||||
| Portfolio fees | 412,915 | 347,914 | ||||||
| Management fees | 224,074 | 292,243 | ||||||
| Total fee income - Asset Management | 636,989 | 640,157 | ||||||
| Other income | 4,580 | - | ||||||
| Total operating income | 21,217,866 | 22,503,545 | ||||||
| Operating Expenses: | ||||||||
| Interest and other borrowing costs 2 | 6,193,860 | 7,277,321 | ||||||
| Management fee | 3,561,308 | 4,746,192 | ||||||
| Legal fees | 1,103,800 | 401,400 | ||||||
| Consulting fees | 783,515 | 821,389 | ||||||
| Audit & tax preparation fees | 714,000 | 979,980 | ||||||
| Other expenses | 411,964 | 448,596 | ||||||
| Loss on extinguishment of debt6 | 345,419 | - | ||||||
| Portfolio company expense | 327,004 | - | ||||||
| Expenses associated with Settlement Agreement | 325,000 | - | ||||||
| Portfolio fees - Asset Management 1 | 309,686 | 260,936 | ||||||
| Directors' fees | 276,914 | 282,448 | ||||||
| Insurance | 231,068 | 206,334 | ||||||
| Management fee - Asset Management 1 | 168,055 | 219,182 | ||||||
| Administration | 123,525 | 123,411 | ||||||
| Public relations fees | 113,198 | 105,094 | ||||||
| Printing and postage | 29,500 | 53,100 | ||||||
| Net Incentive compensation (Note 11) | - | - | ||||||
| Total operating expenses | 15,017,816 | 15,925,383 | ||||||
| Less: Voluntary expense waiver by Adviser 3 | (112,500 | ) | (112,500 | ) | ||||
| Less: Voluntary management fee waiver by Adviser 4 | (1,335,491 | ) | (1,779,822 | ) | ||||
| Total waivers | (1,447,991 | ) | (1,892,322 | ) | ||||
| Net operating income before taxes | 7,648,041 | 8,470,484 | ||||||
| Tax Expenses: | ||||||||
| Current tax expense | 1,452 | 1,447 | ||||||
| Total tax expense | 1,452 | 1,447 | ||||||
| Net operating income | 7,646,589 | 8,469,037 | ||||||
| Net Realized and Unrealized Gain (Loss) on Investments: | ||||||||
| Net realized gain (loss) on investments | ||||||||
| U.S. Treasury obligations | (85,886 | ) | 104,858 | |||||
| Non-control/Non-affiliated investments | (530,611 | ) | 3,226,317 | |||||
| Affiliate investments | (3,790,411 | ) | (3,727,289 | ) | ||||
| Control investments | 2,033,217 | 4,965,552 | ||||||
| Foreign currency | - | 13,895 | ||||||
| Total net realized gain (loss) on investments | (2,373,691 | ) | 4,583,333 | |||||
| Net unrealized appreciation (depreciation) on investments | ||||||||
| Non-control/Non-affiliated investments | (11,713,926 | ) | (1,105,525 | ) | ||||
| Affiliate investments | (12,676,421 | ) | 10,356,198 | |||||
| Control investments | (19,335,619 | ) | (9,043,895 | ) | ||||
| Total unrealized appreciation (depreciation) on investments | (43,725,966 | ) | 206,778 | |||||
| Net realized and unrealized gain (loss) on investments | (46,099,657 | ) | 4,790,111 | |||||
| Net increase (decrease) in net assets resulting from operations | $ | (38,453,068 | ) | $ | 13,259,148 | |||
| Net increase (decrease) in net assets per share resulting from operations | $ | (2.17 | ) | $ | 0.75 | |||
| Dividends declared per share 5 | $ | 0.510 | $ | 0.450 | ||||
| Weighted average number of shares outstanding | 17,725,118 | 17,810,123 | ||||||
1 These items are related to the management of the MVC Private Equity Fund, L.P. ("PE Fund"). Please see Note 10 "Management" for more information.
2 Interest and other borrowing costs includes $0 and $262,705 of interest associated with installment sale treatment on the USG&E note. Please see Note 12 "Tax Matters" for more information.
3 Reflects the nine month period portion of the TTG Advisers' voluntary waiver of $150,000 of expenses for the 2020 and 2019 fiscal years, that the Company would otherwise be obligated to reimburse TTG Advisers under the Advisory Agreement (the "Voluntary Waiver"). Please see Note 10 "Management" for more information.
4 Reflects the nine month period portion of the TTG Advisers' voluntary waiver of the management fee for the 2020 and 2019 Please see Note 10 "Management" for more information.
5 Please see Note 13 "Dividends and Distributions to Shareholders, Share Repurchase Program and Tender Offer" for more information.
6 Reflects $345,419 in unamortized deferred financing fees related to the Senior Notes II which were expensed at the time $20.0 million of the Senior Notes were redeemed.
The accompanying notes are an integral part of these consolidated financial statements.
4
Consolidated Statements of Operations
(Unaudited)
| For the Quarter | For the Quarter | |||||||
| May 1, 2020 to | May 1, 2019 to | |||||||
| July 31, 2020 | July 31, 2019 | |||||||
| Operating Income: | ||||||||
| Dividend income | ||||||||
| Non-control/Non-affiliated investments | $ | - | $ | - | ||||
| Affiliate investments (net of foreign taxes withheld of $0 and $76,866, respectively) | - | - | ||||||
| Total dividend income | - | - | ||||||
| Payment-in-kind dividend income | ||||||||
| Non-control/Non-affiliated investments | - | - | ||||||
| Total payment-in-kind dividend income | - | - | ||||||
| Interest income | ||||||||
| Non-control/Non-affiliated investments | 2,078,707 | 5,924,050 | ||||||
| Affiliate investments | - | - | ||||||
| Control investments | 108,191 | 109,618 | ||||||
| Total interest income | 2,186,898 | 6,033,668 | ||||||
| Payment-in-kind/Deferred interest income | ||||||||
| Non-control/Non-affiliated investments | 3,261,417 | 899,710 | ||||||
| Affiliate investments | 134,679 | 140,621 | ||||||
| Control investments | - | 132,648 | ||||||
| Total payment-in-kind/Deferred interest income | 3,396,096 | 1,172,979 | ||||||
| Fee income | ||||||||
| Non-control/Non-affiliated investments | 33,100 | 38,101 | ||||||
| Total fee income | 33,100 | 38,101 | ||||||
| Fee income - Asset Management 1 | ||||||||
| Portfolio fees | 93,420 | 119,248 | ||||||
| Management fees | 69,840 | 104,944 | ||||||
| Total fee income - Asset Management | 163,260 | 224,192 | ||||||
| Other income | - | - | ||||||
| Total operating income | 5,779,354 | 7,468,940 | ||||||
| Operating Expenses: | ||||||||
| Interest and other borrowing costs 2 | 1,862,800 | 2,510,677 | ||||||
| Management fee | 1,087,726 | 1,642,930 | ||||||
| Legal fees | 780,000 | 123,000 | ||||||
| Portfolio company expense | 327,004 | - | ||||||
| Expenses associated with Settlement Agreement | 325,000 | - | ||||||
| Consulting fees | 300,505 | 334,519 | ||||||
| Other expenses | 201,750 | 140,763 | ||||||
| Audit & tax preparation fees | 115,500 | 151,300 | ||||||
| Directors' fees | 86,414 | 94,000 | ||||||
| Insurance | 80,778 | 69,516 | ||||||
| Portfolio fees - Asset Management 1 | 70,065 | 89,436 | ||||||
| Management fee - Asset Management 1 | 52,379 | 78,708 | ||||||
| Administration | 41,476 | 41,589 | ||||||
| Public relations fees | 30,661 | 26,000 | ||||||
| Printing and postage | 7,100 | 16,800 | ||||||
| Total operating expenses | 5,369,158 | 5,319,238 | ||||||
| Less: Voluntary expense waiver by Adviser 3 | (37,500 | ) | (37,500 | ) | ||||
| Less: Voluntary management fee waiver by Adviser 4 | (407,898 | ) | (616,099 | ) | ||||
| Total waivers | (445,398 | ) | (653,599 | ) | ||||
| Net operating income before taxes | 855,594 | 2,803,301 | ||||||
| Tax Expenses: | ||||||||
| Current tax expense | 482 | 485 | ||||||
| Total tax expense | 482 | 485 | ||||||
| Net operating income | 855,112 | 2,802,816 | ||||||
| Net Realized and Unrealized Gain (Loss) on Investments: | ||||||||
| Net realized gain (loss) on investments | ||||||||
| U.S. Treasury obligations | - | 84,375 | ||||||
| Non-control/Non-affiliated investments | - | 2,910 | ||||||
| Affiliate investments | (3,747,247 | ) | (3,795,709 | ) | ||||
| Control investments | - | (218,992 | ) | |||||
| Foreign currency | - | 11,733 | ||||||
| Total net realized loss on investments | (3,747,247 | ) | (3,915,683 | ) | ||||
| Net unrealized appreciation (depreciation) on investments | ||||||||
| Non-control/Non-affiliated investments | 1,061,645 | (461,583 | ) | |||||
| Affiliate investments | 5,596,414 | 3,491,912 | ||||||
| Control investments | (6,303,042 | ) | (1,569,546 | ) | ||||
| Total unrealized appreciation (depreciation) on investments | 355,017 | 1,460,783 | ||||||
| Net realized and unrealized gain (loss) on investments | (3,392,230 | ) | (2,454,900 | ) | ||||
| Net increase (decrease) in net assets resulting from operations | $ | (2,537,118 | ) | $ | 347,916 | |||
| Net increase (decrease) in net assets per share resulting from operations | $ | (0.14 | ) | $ | 0.02 | |||
| Dividends declared per share 5 | $ | 0.170 | $ | 0.150 | ||||
| Weighted average number of shares outstanding | 17,725,118 | 17,725,118 | ||||||
1 These items are related to the management of the MVC Private Equity Fund, L.P. ("PE Fund"). Please see Note 10 "Management" for more information.
2 Interest and other borrowing costs includes $0 and $86,285 of interest associated with installment sale treatment on the USG&E note. Please see Note 12 "Tax Matters" for more information.
3 Reflects the quarterly portion of the TTG Advisers' voluntary waiver of $150,000 of expenses for the 2020 and 2019 fiscal years, that the Company would otherwise be obligated to reimburse TTG Advisers under the Advisory Agreement (the "Voluntary Waiver"). Please see Note 10 "Management" for more information.
4 Reflects the quarterly portion of the TTG Advisers' voluntary waiver of the management fee for the 2020 and 2019 Please see Note 10 "Management" for more information.
5 Please see Note 13 "Dividends and Distributions to Shareholders, Share Repurchase Program and Tender Offer" for more information.
The accompanying notes are an integral part of these consolidated financial statements.
5
Consolidated Statements of Cash Flows
(Unaudited)
| For the Nine Month Period | For the Nine Month Period | |||||||
| November 1, 2019 to | November 1, 2018 to | |||||||
| July 31, 2020 | July 31, 2019 | |||||||
| Cash flows from Operating Activities: | ||||||||
| Net increase (decrease) in net assets resulting from operations | $ | (38,453,068 | ) | $ | 13,259,148 | |||
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||||||
| Net realized gain | 2,373,691 | (4,583,333 | ) | |||||
| Net change in unrealized depreciation (appreciation) | 43,725,966 | (206,778 | ) | |||||
| Amortization of discounts and fees | (2,507,789 | ) | (232,955 | ) | ||||
| Increase in accrued payment-in-kind dividends and interest | (3,629,098 | ) | (5,143,943 | ) | ||||
| Amortization of deferred financing fees | 785,457 | 968,257 | ||||||
| Loss on extinguishment of debt | 345,419 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Dividends, interest and fees receivable | (1,875,045 | ) | (629,649 | ) | ||||
| Fee and other receivables | 2,101,568 | 16,738 | ||||||
| Escrow receivables, net of reserves | 1,135,000 | (116,000 | ) | |||||
| Prepaid expenses | (211,154 | ) | 49,900 | |||||
| Prepaid taxes | (37 | ) | - | |||||
| Other liabilities | (1,169,399 | ) | 322,658 | |||||
| Purchases of equity investments | (1,870,978 | ) | (4,268,340 | ) | ||||
| Purchases of debt instruments | (9,745,192 | ) | (36,751,624 | ) | ||||
| Purchases of short-term investments | (24,999,410 | ) | (49,991,103 | ) | ||||
| Proceeds from equity investments (1) | 10,709,962 | 30,803,643 | ||||||
| Proceeds from debt instruments | 82,685,527 | 3,395,440 | ||||||
| Sales/maturities of short-term investments | 24,912,778 | 50,094,859 | ||||||
| Net cash provided by (used in) operating activities | 84,314,198 | (3,013,082 | ) | |||||
| Cash flows from Financing Activities: | ||||||||
| Repayments from senior notes | (20,000,000 | ) | - | |||||
| Borrowings from revolving credit facility II | 25,000,000 | 50,000,000 | ||||||
| Repayments from revolving credit facility II | (25,000,000 | ) | (50,000,000 | ) | ||||
| Borrowings from revolving credit facility IV | - | 26,100,000 | ||||||
| Repayments from revolving credit facility IV | (15,100,000 | ) | (4,000,000 | ) | ||||
| Repurchase of common stock | - | (4,069,924 | ) | |||||
| Financing fees paid | - | (1,053,921 | ) | |||||
| Distributions paid to shareholders | (8,847,556 | ) | (7,728,062 | ) | ||||
| Repurchases of common stock under dividend reinvestment plan | (192,256 | ) | (269,711 | ) | ||||
| Net cash provided by financing activities | (44,139,812 | ) | 8,978,382 | |||||
| Net change in cash, cash equivalents, and restricted cash for the period | 40,174,386 | 5,965,300 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of period | $ | 11,698,929 | $ | 15,887,700 | ||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 51,873,315 | $ | 21,853,000 | ||||
(1) For the nine month period ended July 31, 2019, proceeds from equity investments includes $1,018,000 from escrow receivables, net of reserves.
During the nine month periods ended July 31, 2020 and 2019 MVC Capital, Inc. paid $5,412,656 and $6,018,487 in interest expense, respectively.
During the nine month periods ended July 31, 2020 and 2019 MVC Capital, Inc. paid $2,404 and $1,616 in income taxes, respectively.
Non-cash activity:
During the nine month periods ended July 31, 2020 and 2019, MVC Capital, Inc. recorded payment in-kind dividend and interest of $3,629,098 and $5,143,943, respectively. This amount was added to the principal balance of the investments and recorded as dividend/interest income.
During the nine month periods ended July 31, 2020 and 2019, the Plan Agent purchased 23,812 and 29,543 shares of common stock in the open market in order to satisfy the reinvestment portion of our dividends.
The accompanying notes are an integral part of these consolidated financial statements.
6
The accompanying notes are an integral part of these consolidated financial statements.
7
The accompanying notes are an integral part of these consolidated financial statements.
8
Consolidated Schedule of Investments
July 31, 2020
(Unaudited)
| Company | Industry | Investment | Acquistion Date | Principal | Cost | Fair Value | ||||||||||||
| Non-control/Non-affiliated investments- 81.43% (a, c, f, g) | ||||||||||||||||||
| Black Diamond Equipment Rentals, LLC | Equipment Rental | Second Lien Loan 12.5000% Cash,06/27/2022 (k, n) | 12/28/17 | $ | 7,500,000 | $ | 7,266,844 | $ | 7,500,000 | |||||||||
| Warrants (d, n) | 12/28/17 | 1 | 400,847 | 933,000 | ||||||||||||||
| 7,667,691 | 8,433,000 | |||||||||||||||||
| Custom Alloy Corporation | Manufacturer of Pipe Fittings and Forgings | Second Lien Loan 12.0000% Cash, 3.0000% PIK, 04/30/2022 (b, k, n) | 10/31/14 | 33,137,484 | 33,137,484 | 26,248,833 | ||||||||||||
| Second Lien Loan 12.0000% Cash, 3.0000% PIK, 04/30/2022 (b, k, n) | 10/31/14 | 6,253,813 | 6,253,813 | 4,953,764 | ||||||||||||||
| Revolver 12.0000% Cash, 3.0000% PIK, 04/30/2021 (b, k, n) | 07/01/19 | 3,745,808 | 3,745,808 | 3,381,296 | ||||||||||||||
| 43,137,105 | 34,583,893 | |||||||||||||||||
| Dukane IAS,LLC | Welding Equipment Manufacturer | Second Lien Note 10.5000% Cash, 2.5000% PIK, 11/17/2020 (b, k, n) | 02/17/16 | 4,575,144 | 4,566,420 | 4,565,295 | ||||||||||||
| FOLIOfn, Inc. | Technology Investment - Financial Services | Preferred Stock (5,802,259 shares) (d, i, n) | 06/21/00 | 15,000,000 | 12,750,000 | |||||||||||||
| Global Prairie PBC, Inc. | Marketing | Second Lien Loan 10.0000% Cash, 4.0000% PIK, 04/16/2025 (b, k, n) | 10/16/19 | 3,087,161 | 3,035,793 | 3,076,527 | ||||||||||||
| GTM Intermediate Holdings, Inc. | Medical Equipment/Manufacturer | Second Lien Loan 11.0000% Cash, 1.0000% PIK, 12/7/2024 (b ,k, n) | 12/07/18 | 5,102,710 | 5,025,420 | 5,098,327 | ||||||||||||
| Common Stock (2 shares) (d, n, q) | 12/07/18 | 766,122 | 1,187,245 | |||||||||||||||
| 5,791,542 | 6,285,572 | |||||||||||||||||
| Highpoint Global LLC | Government Services | Second Lien Note 12.0000% Cash, 2.0000% PIK, 09/30/2022 (b, k, n) | 10/19/17 | 5,280,808 | 5,237,046 | 5,280,808 | ||||||||||||
| HTI Technologies and Industries, Inc. | Electronic Component Manufacturing | Second Lien Note 16.7500% PIK, 9/15/2024 (b, k, n) | 06/01/16 | 12,101,934 | 12,085,650 | 11,574,645 | ||||||||||||
| Initials, Inc. | Consumer Products | Senior Subordinated Debt 8.0000% Cash, 7.0000% PIK, 10/1/2020 (b, h, k, n) | 06/23/15 | 5,642,913 | 5,642,913 | 626,221 | ||||||||||||
| International Precision Components Corporation | Plastic Injection Molding | Second Lien Loan 12.0000% Cash, 2.0000% PIK, 10/3/2024 (b, k, n, r) | 06/27/12 | 7,700,000 | 7,581,258 | 7,700,000 | ||||||||||||
| Jedson Engineering, Inc. | Engineering and Construction Management | First Lien Loan 12.0000% Cash, 3.0000% PIK, 06/30/2022 (b, k, n) | 06/25/19 | 9,487,685 | 9,311,595 | 6,598,351 | ||||||||||||
| Legal Solutions Holdings, Inc. | Business Services | Senior Subordinated Debt 6.0000% Cash, 10.0000% PIK, 03/31/2022 (b, h, k, n) | 12/30/14 | 10,141,212 | 10,141,212 | 9,259,159 | ||||||||||||
| Powers Equipment Acquisition Company, LLC | Equipment Manufacturer | First Lien Note 13.5000% PIK, 04/30/2024 (b, k, n, s) | 05/01/19 | 6,724,345 | 6,626,953 | 5,524,748 | ||||||||||||
| SMA Holdings, Inc. | Consulting | First Lien Loan 11.0000% Cash, 06/26/2024 (k, n) | 06/26/19 | 7,000,000 | 6,519,104 | 7,000,000 | ||||||||||||
| Warrants (d, n) | 06/26/19 | 2 | 504,555 | 792,120 | ||||||||||||||
| 7,023,659 | 7,792,120 | |||||||||||||||||
| Trientis GmbH | Environmental Services | First Lien Note 5.0000% PIK, 10/26/2024 (b, e, h, m, n, o) | 10/20/17 | 1,248,632 | 1,248,632 | 221,379 | ||||||||||||
| Warrants (d, e, n, o) | 03/19/18 | 1 | 67,715 | - | ||||||||||||||
| 1,316,347 | 221,379 | |||||||||||||||||
| Tuf-Tug Inc. | Safety Equipment Manufacturer | Second Lien Loan 11.0000% Cash, 2.0000% PIK,02/24/2024 (b, k, n) | 08/24/18 | 5,061,687 | 5,030,101 | 5,052,984 | ||||||||||||
| Common Stock (24.6 shares) (d, n, p) | 08/24/18 | 750,000 | 535,924 | |||||||||||||||
| 5,780,101 | 5,588,908 | |||||||||||||||||
| Turf Products, LLC | Distributor - Landscaping and Irrigation Equipment | Senior Subordinated Debt 10.0000% Cash, 10/07/2023 (k, n) | 11/30/05 | 8,697,056 | 8,697,056 | 8,124,954 | ||||||||||||
| U.S. Gas & Electric, Inc. | Energy Services | Second Lien Loan, 9.5000% Cash, 07/05/2025 (l, n) | 07/05/17 | 2,285,250 | 2,285,250 | 2,285,250 | ||||||||||||
| Second Lien Loan, 9.5000% Cash, 07/05/2025 (h, l, n) | 07/05/17 | 2,485,469 | 2,485,469 | - | ||||||||||||||
| 4,770,719 | 2,285,250 | |||||||||||||||||
| U.S. Spray Drying Holding Company | Specialty Chemicals | Class B Common Stock (784 shares) (d, n) | 03/28/13 | 5,488,000 | 10,000 | |||||||||||||
| Secured Loan 8.0000% Cash, 04/30/2025 (k, n) | 05/02/14 | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||||||||
| Senior Secured Loan 8.0000% Cash, 04/30/2025 (k, n) | 11/08/17 | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||||||||
| 8,488,000 | 3,010,000 | |||||||||||||||||
| United States Technologies, Inc. | Electronics Manufacturing and Repair | Senior Lien Loan 10.5000% Cash, 07/17/2021 (k, n) | 07/17/15 | 3,666,667 | 3,666,667 | 3,666,667 | ||||||||||||
| Sub Total Non-control/Non-affiliated investments | $ | 175,567,727 | $ | 146,947,497 | ||||||||||||||
| Affiliate investments - 23.77% (a, c, f, g) | ||||||||||||||||||
| Advantage Insurance, Inc. | Insurance | Preferred Stock (587,001 shares) (a, d, e, n) | 09/23/13 | 5,870,010 | 5,175,776 | |||||||||||||
| JSC Tekers Holdings | Real Estate Management | Common Stock (3,201 shares) (a, d, e, n) | 05/04/11 | 4,500 | - | |||||||||||||
| Preferred Stock (9,159,085 shares) (a, d, e, n) | 05/01/14 | 11,810,188 | 5,019,000 | |||||||||||||||
| 11,814,688 | 5,019,000 | |||||||||||||||||
| Security Holdings B.V. | Electrical Engineering | Common Equity Interest (a, d, e, n) | 09/03/08 | 51,204,270 | 18,844,000 | |||||||||||||
| Bridge Loan 5.0000% PIK, 05/31/2022 (a, b, e, k, n) | 04/03/17 | 5,187,508 | 5,187,508 | 5,187,508 | ||||||||||||||
| Senior Subordinated Loan 3.1000% PIK, 05/31/2022 (a, b, e, k, n) | 05/30/18 | 8,677,707 | 8,677,707 | 8,677,707 | ||||||||||||||
| 65,069,485 | 32,709,215 | |||||||||||||||||
| Sub Total Affiliate investments | $ | 82,754,183 | $ | 42,903,991 | ||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
9
MVC Capital, Inc.
Consolidated Schedule of Investments - (Continued)
July 31, 2020
(Unaudited)
| Company | Industry | Investment | Acquistion Date | Principal | Cost | Fair Value | ||||||||||||
| Control investments - 17.18% (a, c, f, g) | ||||||||||||||||||
| MVC Automotive Group GmbH | Automotive Dealerships | Common Equity Interest (d, e, n) | 09/20/07 | $ | 52,185,015 | $ | 14,737,000 | |||||||||||
| Bridge Loan 6.0000% Cash, 12/31/2021 (e, k, n) | 06/28/16 | $ | 7,149,166 | 7,149,166 | 7,149,166 | |||||||||||||
| 59,334,181 | 21,886,166 | |||||||||||||||||
| MVC Private Equity Fund LP | Private Equity | Limited Partnership Interest (d, j, k, n) | 11/21/11 | 7,179,036 | 8,885,662 | |||||||||||||
| General Partnership Interest (d, j, k, n) | 11/21/11 | 183,138 | 227,491 | |||||||||||||||
| 7,362,174 | 9,113,153 | |||||||||||||||||
| RuMe Inc. | Consumer Products | Common Stock (5,297,548 shares) (d, n) | 07/15/11 | 924,475 | - | |||||||||||||
| Series C Preferred Stock (23,896,634 shares) (d, n) | 05/07/14 | 3,410,694 | - | |||||||||||||||
| Series B-1 Preferred Stock (4,999,076 shares) (d, n) | 07/15/11 | 999,815 | - | |||||||||||||||
| Subordinated Debt 10.0000% PIK, 3/31/2021 (b, h, k, n) | 10/07/16 | 3,793,732 | 3,793,732 | - | ||||||||||||||
| Revolver 10.0000% PIK, 3/31/2021 (b, h, k, n) | 08/09/18 | 2,231,948 | 2,231,948 | - | ||||||||||||||
| Revolver 10.0000% PIK, 3/31/2021 (b, h, k, n) | 08/30/19 | 726,704 | 726,704 | - | ||||||||||||||
| Warrants (d, n) | 12/31/13 | 3 | 594,544 | - | ||||||||||||||
| 12,681,912 | - | |||||||||||||||||
| Sub Total Control investments | $ | 79,378,267 | $ | 30,999,319 | ||||||||||||||
| TOTAL PORTFOLIO INVESTMENTS - 122.38% (f) | $ | 337,700,177 | $ | 220,850,807 | ||||||||||||||
| Cash equivalents- 27.82% (f, g) | ||||||||||||||||||
| Fidelity Institutional Government Money Market Fund - Class I | Money Market Fund | Beneficial Shares (50,100,415 shares) | $ | 50,100,415 | $ | 50,100,415 | ||||||||||||
| Morgan Stanley Institutional Liquidity Government Portfolio - Class I | Money Market Fund | Beneficial Shares (99,904 shares) | 99,904 | 99,904 | ||||||||||||||
| Total Cash equivalents | 50,200,319 | 50,200,319 | ||||||||||||||||
| TOTAL INVESTMENT ASSETS - 150.20% | $ | 387,900,496 | $ | 271,051,126 | ||||||||||||||
(a) These securities are restricted from public sale without prior registration under the Securities Act of 1933.The Company negotiates certain aspects of the method and timing of the disposition of these investments, including registration rights and related costs.
(b) These securities accrue a portion of their interest/dividends in "payment in kind" interest/dividends which is capitalized to the investment.
(c) All of the Company's equity and debt investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940, except MVC Automotive Group GmbH, Security Holdings B.V., Trientis GmbH, JSC Tekers Holdings, and MVC Private Equity Fund L.P.
The Company makes available significant managerial assistance to all of the portfolio companies in which it has invested.
(d) Non-income producing assets.
(e) The principal operations of these portfolio companies are located in Europe and Puerto Rico which represents approximately 23% of the total assets.The remaining portfolio companies are located in United States which represents approximately 55% of the total assets.
(f) Percentages are based on net assets of $180,465,804 as of July 31, 2020.
(g) See Note 3 for further information regarding “Investment Classification.”
(h) All or a portion of the accrued interest on these securities have been reserved for.
(i) Legacy Investments.
(j) MVC Private Equity Fund, LP is a private equity fund focused on control equity investments in the lower middle market.The fund currently holds two investments, one located in the United States and one in Gibraltar, the investments are in the energy services and industrial sectors.The Company owns 18.9% of the fund through its limited partnership interest and owns .5% of the fund through its general partnership interest.The Company's proportional share of Gibdock Limited equity interest and loan and Advanced Oil Field Services, LLC common stock, preferred stock, and loan is $6,704,992 and $2,064,571, respectively.The Company's partnership interests in the MVC Private Equity Fund, LP are not redeemable.
(k) All or a portion of these securities may serve as collateral for the People's United credit facility.
(l) U.S. Gas & Electric, Inc. is an indirect subsidiary of Vistra Energy (NYSE: VST). On October 18, 2019 and July 6, 2020, Vistra Energy notified the Company that it was asserting offsets of Company's loan assets totaling approximately $2.5 million relating to an indemnification claim obligations attributable to U.S. Gas.The offset is reflected in the fair value of the loan asset as the Company is considering its response to the claim.
(m) Cash/PIK toggle at borrower's option
(n) These securities are valued using unobservable inputs.
(o) During the fiscal year ended October 31, 2018, all assets and liabilities of SGDA Europe were transferred to a new Austrian holding company, Trientis GmbH, to achieve operating efficiencies.
(p) Shares of Tuf-Tug, Inc. are held via Alitus T-T, LP.
(q) Shares of GTM Intermediate Holdings, Inc. are held via GTM Ultimate Holdings, LLC.
(r) Variable PIK rate between 2.0000% and 3.5000%.
(s) Variable cash rate between 10.5000% and 13.5000%.
PIK - Payment-in-kind
- Denotes zero cost or fair value.
The accompanying notes are an integral part of these consolidated financial statements.
10
MVC Capital, Inc.
Consolidated Schedule of Investments
October 31, 2019
| Company | Industry | Investment | Acquistion Date | Principal | Cost | Fair Value/ Market Value | ||||||||||||
| Non-control/Non-affiliated investments- 100.60% (a, c, f, g) | ||||||||||||||||||
| Apex Industrial Technologies, LLC | Supply Chain Equipment Manufacturer | First Lien Loan 12.0000% Cash, 12/31/2019 (k, n) | 03/09/18 | $ | 15,000,000 | $ | 14,899,274 | $ | 15,000,000 | |||||||||
| Array Information Technology, Inc. | Information Technology Products and Services | Second Lien Loan 12.0000% Cash, 4.0000% PIK, 10/03/2023 (b, k, n, p) | 04/03/18 | 6,259,648 | 6,175,991 | 6,322,216 | ||||||||||||
| Warrants (d, n) | 04/03/18 | 1 | - | - | ||||||||||||||
| 6,175,991 | 6,322,216 | |||||||||||||||||
| Black Diamond Equipment Rentals, LLC | Equipment Rental | Second Lien Loan 12.5000% Cash, 06/27/2022 (k, n) | 12/28/17 | 7,500,000 | 7,174,926 | 7,575,000 | ||||||||||||
| Warrants (d, n) | 12/28/17 | 1 | 400,847 | 960,000 | ||||||||||||||
| 7,575,773 | 8,535,000 | |||||||||||||||||
| Custom Alloy Corporation | Manufacturer of Pipe Fittings and Forgings | Second Lien Loan 12.0000% Cash, 3.0000% PIK, 04/30/2022 (b, k, n) | 10/31/14 | 32,471,814 | 32,471,814 | 32,061,135 | ||||||||||||
| Second Lien Loan 12.0000% Cash, 3.0000% PIK, 04/30/2022 (b, k, n) | 10/31/14 | 6,128,186 | 6,128,186 | 6,050,681 | ||||||||||||||
| Revolver 12.0000% Cash, 3.0000% PIK, 04/30/2020 (b, k, n) | 07/01/19 | 2,050,000 | 2,050,000 | 2,050,000 | ||||||||||||||
| 40,650,000 | 40,161,816 | |||||||||||||||||
| Dukane IAS,LLC | Welding Equipment Manufacturer | Second Lien Note 10.5000% Cash, 2.5000% PIK, 11/17/2020 (b, k, n) | 02/17/16 | 4,489,182 | 4,458,353 | 4,534,074 | ||||||||||||
| Essner Manufacturing, LP | Defense/Aerospace Parts Manufacturing | First Lien Loan 11.5000% Cash, 12/20/2022 (k, n, o) | 12/20/17 | 3,588,606 | 3,543,739 | 3,588,606 | ||||||||||||
| FOLIOfn, Inc. | Technology Investment - Financial Services | Preferred Stock (5,802,259 shares) (d, i, n) | 06/21/00 | 15,000,000 | 6,352,000 | |||||||||||||
| Global Prairie PBC, Inc. | Marketing | Second Lien Loan 10.0000% Cash, 4.0000% PIK, 04/16/2025 (b, k, n) | 10/16/19 | 3,000,000 | 2,940,448 | 3,000,000 | ||||||||||||
| GTM Intermediate Holdings, Inc. | Medical Equipment/Manufacturer | Second Lien Loan 11.0000% Cash, 1.0000% PIK, 12/7/2024 (b ,k, n) | 12/07/18 | 5,064,069 | 4,973,443 | 5,064,069 | ||||||||||||
| Common Stock (2 shares) (d, n, t) | 12/07/18 | 766,122 | 766,122 | |||||||||||||||
| 5,739,565 | 5,830,191 | |||||||||||||||||
| Highpoint Global LLC | Government Services | Second Lien Note 12.0000% Cash, 2.0000% PIK, 09/30/2022 (b, k, n) | 10/19/17 | 5,201,232 | 5,142,323 | 5,201,232 | ||||||||||||
| HTI Technologies and Industries, Inc. | Electronic Component Manufacturing | Second Lien Note 12.0000% Cash, 3.7500% PIK, 9/15/2024 (b, k, n) | 06/01/16 | 11,419,845 | 11,400,660 | 11,419,845 | ||||||||||||
| Initials, Inc. | Consumer Products | Senior Subordinated Debt 8.0000% Cash, 7.0000% PIK, 06/23/2020 (b, h, k, n) | 06/23/15 | 5,642,913 | 5,642,913 | 1,272,188 | ||||||||||||
| International Precision Components Corporation | Plastic Injection Molding | Second Lien Loan 12.0000% Cash, 3.5000% PIK, 10/3/2024 (b, k, n, u) | 06/27/12 | 8,000,000 | 7,854,192 | 8,000,000 | ||||||||||||
| Jedson Engineering, Inc. | Engineering and Construction Management | First Lien Loan 12.0000% Cash, 3.0000% PIK, 06/21/2024 (b, k, n) | 06/25/19 | 6,041,262 | 5,928,722 | 6,041,262 | ||||||||||||
| Legal Solutions Holdings, Inc. | Business Services | Senior Subordinated Debt 12.0000% Cash, 3.0000% PIK, 03/18/2020 (b, k, n) | 12/30/14 | 12,182,950 | 12,182,950 | 12,182,950 | ||||||||||||
| Morey's Seafood International, LLC | Food Services | Second Lien Loan 10.0000% Cash, 3.0000% PIK, 08/12/2022 (b, k, n, q) | 08/13/13 | 16,485,324 | 16,485,324 | 16,485,324 | ||||||||||||
| Powers Equipment Acquisition Company, LLC | Equipment Manufacturer | First Lien Note 13.5000% Cash, 04/30/2024 (k, n, v) | 05/01/19 | 6,500,000 | 6,383,100 | 6,500,000 | ||||||||||||
| SMA Holdings, Inc. | Consulting | First Lien Loan 11.0000% Cash, 06/26/2024 (k, n) | 06/26/19 | 7,000,000 | 6,426,640 | 6,530,794 | ||||||||||||
| Warrants (d, n) | 06/26/19 | 2 | 504,555 | 504,555 | ||||||||||||||
| 6,931,195 | 7,035,349 | |||||||||||||||||
| Trientis GmbH | Environmental Services | First Lien Note 5.0000% PIK, 10/26/2024 (b, e, h, m, n, r) | 10/20/17 | 1,248,632 | 1,248,632 | 176,906 | ||||||||||||
| Warrants (d, e, r, n) | 03/19/18 | 1 | 67,715 | - | ||||||||||||||
| 1,316,347 | 176,906 | |||||||||||||||||
| Tuf-Tug Inc. | Safety Equipment Manufacturer | Second Lien Loan 11.0000% Cash, 2.0000% PIK, 02/24/2024 (b, k, n) | 08/24/18 | 4,985,284 | 4,947,047 | 5,035,136 | ||||||||||||
| Common Stock (24.6 shares) (d, n, s) | 08/24/18 | 750,000 | 778,210 | |||||||||||||||
| 5,697,047 | 5,813,346 | |||||||||||||||||
| Turf Products, LLC | Distributor - Landscaping and Irrigation Equipment | Senior Subordinated Debt 10.0000% Cash, 08/07/2020 (k, n) | 11/30/05 | 7,717,056 | 7,717,056 | 7,563,104 | ||||||||||||
| Third Lien Loan 10.0000% Cash, 08/07/2020 (k, n) | 12/22/17 | 1,050,000 | 1,050,000 | 1,032,473 | ||||||||||||||
| 8,767,056 | 8,595,577 | |||||||||||||||||
| U.S. Gas & Electric, Inc. | Energy Services | Second Lien Loan, 9.5000% Cash, 07/05/2025 (l, n) | 07/05/17 | 37,527,881 | 37,527,881 | 36,974,616 | ||||||||||||
| U.S. Spray Drying Holding Company | Specialty Chemicals | Class B Common Stock (784 shares) (d, n) | 03/28/13 | 5,488,000 | 1,800,000 | |||||||||||||
| Secured Loan 12.0000% Cash, 04/30/2021 (k, n) | 05/02/14 | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||||||||
| Senior Secured Loan 12.0000% Cash, 04/30/2021 (k, n) | 11/08/17 | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||||||||
| 8,488,000 | 4,800,000 | |||||||||||||||||
| United States Technologies, Inc. | Electronics Manufacturing and Repair | Senior Lien Loan 10.5000% Cash, 07/17/2020 (k, n) | 07/17/15 | 5,500,000 | 5,497,954 | 5,500,000 | ||||||||||||
| Sub Total Non-control/Non-affiliated investments | $ | 246,228,807 | $ | 229,322,498 | ||||||||||||||
| Affiliate investments - 27.13% (a, c, f, g) | ||||||||||||||||||
| Advantage Insurance, Inc. | Insurance | Preferred Stock (750,000 shares) (d, e, n) | 09/23/13 | 7,500,000 | 7,513,627 | |||||||||||||
| Equus Total Return, Inc. | Registered Investment Company | Common Stock (3,228,024 shares) (d, k) | 05/14/14 | 7,524,035 | 4,874,316 | |||||||||||||
| JSC Tekers Holdings | Real Estate Management | Common Stock (3,201 shares) (d, e, n) | 05/04/11 | 4,500 | - | |||||||||||||
| Preferred Stock (9,159,085 shares) (d, e, n) | 05/01/14 | 11,810,188 | 4,910,000 | |||||||||||||||
| 11,814,688 | 4,910,000 | |||||||||||||||||
| Security Holdings B.V. | Electrical Engineering | Common Equity Interest (d, e, n) | 09/03/08 | 51,204,270 | 33,607,000 | |||||||||||||
| Bridge Loan 5.0000% PIK, 12/31/2019 (b, e, k, n) | 04/03/17 | 4,937,218 | 4,937,218 | 4,937,218 | ||||||||||||||
| Senior Subordinated Loan 3.1000% PIK, 05/31/2020 (b, e, k, n) | 05/30/18 | 6,009,735 | 6,009,735 | 6,009,735 | ||||||||||||||
| 62,151,223 | 44,553,953 | |||||||||||||||||
| Sub Total Affiliate investments | $ | 88,989,946 | $ | 61,851,896 | ||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
11
MVC Capital, Inc.
Consolidated Schedule of Investments - (Continued)
October 31, 2019
| Company | Industry | Investment | Acquistion Date | Principal | Cost | Fair Value/ Market Value | ||||||||||||
| Control investments - 21.53% (c, f, g) | ||||||||||||||||||
| MVC Automotive Group GmbH | Automotive Dealerships | Common Equity Interest (a, d, e, n) | 09/20/07 | $ | 52,185,015 | $ | 20,602,000 | |||||||||||
| Bridge Loan 6.0000% Cash, 12/31/2020 (a, e, k, n) | 06/28/16 | $ | 7,149,166 | 7,149,166 | 7,149,166 | |||||||||||||
| 59,334,181 | 27,751,166 | |||||||||||||||||
| MVC Private Equity Fund LP | Private Equity | Limited Partnership Interest (a, d, j, k, n) | 11/21/11 | 9,034,881 | 12,252,382 | |||||||||||||
| General Partnership Interest (a, d, j, k, n) | 11/21/11 | 230,481 | 312,561 | |||||||||||||||
| 9,265,362 | 12,564,943 | |||||||||||||||||
| RuMe Inc. | Consumer Products | Common Stock (5,297,548 shares) (a, d, n) | 07/15/11 | 924,475 | - | |||||||||||||
| Series C Preferred Stock (23,896,634 shares) (a, d, n) | 05/07/14 | 3,410,694 | 1,462,857 | |||||||||||||||
| Series B-1 Preferred Stock (4,999,076 shares) (a, d, n) | 07/15/11 | 999,815 | - | |||||||||||||||
| Subordinated Debt 10.0000% PIK, 3/31/2020 (a, b, k, n) | 10/07/16 | 3,610,446 | 3,610,446 | 3,610,446 | ||||||||||||||
| Revolver 10.0000% PIK, 3/31/2021 (a, b, k, n) | 08/09/18 | 2,075,613 | 2,075,613 | 2,075,613 | ||||||||||||||
| Revolver 10.0000% | ||||||||||||||||||