10-Q 1 ea0205196-10q_phenixfin.htm QUARTERLY REPORT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

Form 10-Q

 

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

 

For the Quarterly Period Ended March 31, 2024

 

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: 1-35040

 

PHENIXFIN CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Delaware   27-4576073
(State or Other Jurisdiction of   (I.R.S. Employer
Incorporation or Organization)   Identification No.)

 

445 Park Avenue, 10th Floor, New York, NY   10022
(Address of Principal Executive Offices)   (Zip Code)

  

(212) 859-0390

(Registrant’s Telephone Number, Including Area Code)

 

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, par value $0.001 per share   PFX   The NASDAQ Global Market
5.25% Notes due 2028   PFXNZ   The NASDAQ Global Market

 

Securities registered pursuant to Section 12(g) of the Act: None

 

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.

 

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 not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ☐ No

 

The Registrant had 2,019,790 shares of common stock, $0.001 par value, outstanding as of May 10, 2024.

 

 

 

 

 

 

PHENIXFIN CORPORATION

 

TABLE OF CONTENTS

 

    Page
PART I. Financial Information    
     
Item 1. Financial Statements    
     
Consolidated Statements of Assets and Liabilities as of March 31, 2024 (unaudited) and September 30, 2023   1
     
Consolidated Statements of Operations for the three and six months ended March 31, 2024 and 2023 (unaudited)   2
     
Consolidated Statements of Changes in Net Assets for the three and six months ended March 31, 2024 and 2023 (unaudited)   3
     
Consolidated Statements of Cash Flows for the six months ended March 31, 2024 and 2023 (unaudited)   4
     
Consolidated Schedules of Investments as of March 31, 2024 (unaudited) and September 30, 2023   5
     
Notes to Consolidated Financial Statements (unaudited)   21
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   46
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk   59
     
Item 4. Controls and Procedures   60
     
Part II. Other Information   61
     
Item 1. Legal Proceedings   61
     
Item 1A. Risk Factors   61
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds   76
     
Item 3. Defaults Upon Senior Securities   76
     
Item 4. Mine Safety Disclosures   76
     
Item 5. Other Information   77
     
Item 6. Exhibits   77
     
SIGNATURES   79

 

i

 

 

PHENIXFIN CORPORATION

Consolidated Statements of Assets and Liabilities

 

   March 31,
2024
(Unaudited)
   September 30,
2023
 
Assets:        
Investments at fair value        
Non-controlled, non-affiliated investments (amortized cost of $138,055,022 and $134,339,121 respectively)  $132,407,942   $125,531,031 
Affiliated investments (amortized cost of $20,564,242 and $48,233,910, respectively)   14,333,867    37,289,617 
Controlled investments (amortized cost of $90,793,284 and $82,437,692, respectively)   73,307,525    63,640,043 
Total Investments at fair value   220,049,334    226,460,691 
Cash and cash equivalents   19,123,796    5,988,223 
Receivables:          
Interest receivable   920,769    971,115 
Dividends receivable   243,302    161,479 
Other receivable   
-
    31,425 
Due from Affiliate   5,326,933    409,214 
Other assets   1,173,608    833,000 
Deferred financing costs   724,568    699,124 
Prepaid share repurchase   132,295    199,019 
Receivable for investments sold   
-
    3,940,175 
Total Assets  $247,694,605   $239,693,465 
           
Liabilities:          
Credit facility and note payable (net of debt issuance costs of $1,522,586 and $1,688,835, respectively)  $84,419,355   $84,253,106 
Payable for investments purchased   5,036,284    4,123,059 
Accounts payable and accrued expenses   2,707,303    3,066,984 
Interest and fees payable   724,564    690,398 
Other liabilities   360,477    432,698 
Due to Affiliate   99,725    
-
 
Administrator expenses payable (see Note 6)   75,000    
-
 
Deferred revenue   
-
    421,685 
Total Liabilities   93,422,708    92,987,930 
           
Commitments and Contingencies (see Note 8)   
 
    
 
 
           
Net Assets:          
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,020,490 and 2,073,713 common shares outstanding, respectively   2,021    2,074 
Capital in excess of par value   692,472,513    694,812,239 
Total distributable earnings (loss)   (538,202,637)   (548,108,778)
Total Net Assets   154,271,897    146,705,535 
Total Liabilities and Net Assets  $247,694,605   $239,693,465 
           
Net Asset Value Per Common Share  $76.35   $70.75 

 

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

 

1

 

 

PHENIXFIN CORPORATION

Consolidated Statements of Operations

(Unaudited)

 

   For the Three Months Ended
March 31,
   For the Six Months Ended
March 31,
 
   2024   2023   2024   2023 
                 
Interest Income:                
Interest from investments                
Non-controlled, non-affiliated investments:                
Cash  $1,950,898   $2,116,741   $4,633,041   $4,032,782 
Payment in-kind   90,530    119,593    181,204    225,780 
Affiliated investments:                    
Cash   276,484    261,028    732,176    459,481 
Payment in-kind   
-
    
-
    
-
    
-
 
Controlled investments:                    
Cash   294,028    57,188    580,266    251,815 
Payment in-kind   118,864    155,994    268,831    245,737 
Total interest income   2,730,804    2,710,544    6,395,518    5,215,595 
Dividend income   1,652,262    1,503,375    3,665,988    3,535,733 
Interest from cash and cash equivalents   199,266    125,471    240,374    217,697 
Fee income (see Note 9)   76,517    171,055    78,625    244,654 
Other income   
-
    401,986    22    401,986 
Total Investment Income   4,658,849    4,912,431    10,380,527    9,615,665 
                     
Expenses:                    
Interest and financing expenses   1,567,352    1,381,596    3,109,413    2,614,772 
Salaries and benefits   1,524,508    802,090    2,949,500    1,659,623 
General and administrative expenses   310,776    201,181    635,837    421,158 
Professional fees, net   343,150    377,229    700,704    725,146 
Directors fees   187,500    176,500    375,000    370,500 
Insurance expenses   96,694    121,387    194,450    245,471 
Administrator expenses (see Note 6)   57,550    77,937    135,402    155,821 
Total expenses   4,087,530    3,137,920    8,100,306    6,192,491 
Net Investment Income   571,319    1,774,511    2,280,221    3,423,174 
                     
Realized and unrealized gains (losses) on investments                    
Non-controlled, non-affiliated investments   200,754    (838,070)   430,558    (824,622)
Affiliated investments   (1,991,456)   
-
    (1,991,456)   
-
 
Controlled investments   
-
    23,273    
-
    23,273 
Total net realized gains (losses)   (1,790,702)   (814,797)   (1,560,898)   (801,349)
Net change in unrealized gains (losses):                    
Non-controlled, non-affiliated investments   1,796,767    803,513    3,161,010    2,326,612 
Affiliated investments   2,282,655    274,063    4,713,918    989,600 
Controlled investments   2,512,263    4,670,928    1,311,890    4,722,097 
Total net change in unrealized gains (losses)   6,591,685    5,748,504    9,186,818    8,038,309 
Total realized and unrealized gains (losses)   4,800,983    4,933,707    7,625,920    7,236,960 
                     
Net Increase (Decrease) in Net Assets Resulting from Operations  $5,372,302   $6,708,218   $9,906,141   $10,660,134 
                     
Weighted average basic and diluted earnings per common share
  $2.62   $3.20   $4.81   $5.08 
Weighted average common shares outstanding - basic and diluted (see Note 11)
   2,048,622    2,095,193    2,060,723    2,098,041 

 

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

 

2

 

 

PHENIXFIN CORPORATION

Consolidated Statements of Changes in Net Assets

(Unaudited)

 

   Common Stock         
   Shares   Par Amount   Capital in
Excess of
Par Value
   Total
Distributable
Earnings/(Loss)
   Total Net
Assets
 
Balance at December 31, 2022   2,099,824   $2,100   $675,297,285   $(550,606,580)  $124,692,805 
OPERATIONS                         
Net investment income (loss)   -    
-
    
-
    1,774,511    1,774,511 
Net realized gains (losses) on investments   -    
-
    
-
    (814,797)   (814,797)
Net change in unrealized appreciation (depreciation) on investments   -    
-
    
-
    5,748,504    5,748,504 
CAPITAL SHARE TRANSACTIONS                         
Repurchase of common shares   (8,186)   (8)   (250,126)   
-
    (250,134)
Total Increase (Decrease) in Net Assets   (8,186)   (8)   (250,126)   6,708,218    6,458,084 
                          
Balance at March 31, 2023   2,091,638   $2,092   $675,047,159   $(543,898,362)  $131,150,889 
                          
Balance at December 31, 2023   2,060,490   $2,061   $694,273,678   $(543,574,939)  $150,700,800 
OPERATIONS                         
Net investment income (loss)   -    
-
    
-
    571,319    571,319 
Net realized gains (losses) on investments   -    
-
    
-
    (1,790,702)   (1,790,702)
Net change in unrealized appreciation (depreciation) on investments   -    
-
    
-
    6,591,685    6,591,685 
CAPITAL SHARE TRANSACTIONS                         
Repurchase of common shares   (40,000)   (40)   (1,801,165)   
-
    (1,801,205)
Total Increase (Decrease) in Net Assets   (40,000)   (40)   (1,801,165)   5,372,302    3,571,097 
                          
Balance at March 31, 2024   2,020,490   $2,021   $692,472,513   $(538,202,637)  $154,271,897 
                          
Balance at September 30, 2022   2,102,129   $2,102   $675,401,802   $(554,558,496)  $120,845,408 
OPERATIONS                         
Net investment income (loss)   -    
-
    
-
    3,423,174    3,423,174 
Net realized gains (losses) on investments   -    
-
    
-
    (801,349)   (801,349)
Net change in unrealized appreciation (depreciation) on investments   -    
-
    
-
    8,038,309    8,038,309 
Total Increase (Decrease) in Net Assets   -    -    -           
CAPITAL SHARE TRANSACTIONS                         
Repurchase of common shares   (10,491)   (10)   (354,643)   
-
    (354,653)
Total Increase (Decrease) in Net Assets   (10,491)   (10)   (354,643)   10,660,134    10,305,481 
                          
Balance at March 31, 2023   2,091,638   $2,092   $675,047,159   $(543,898,362)  $131,150,889 
                          
Balance at September 30, 2023   2,073,713   $2,074   $694,812,239   $(548,108,778)  $146,705,535 
OPERATIONS                         
Net investment income (loss)   -    
-
    
-
    2,280,221    2,280,221 
Net realized gains (losses) on investments   -    
-
    
-
    (1,560,898)   (1,560,898)
Net change in unrealized appreciation (depreciation) on investments   -    
-
    
-
    9,186,818    9,186,818 
CAPITAL SHARE TRANSACTIONS                         
Repurchase of common shares   (53,223)   (53)   (2,339,726)   
-
    (2,339,779)
Total Increase (Decrease) in Net Assets   (53,223)   (53)   (2,339,726)   9,906,141    7,566,362 
                          
Balance at March 31, 2024   2,020,490   $2,021   $692,472,513   $(538,202,637)  $154,271,897 

 

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

 

3

 

 

PHENIXFIN CORPORATION

Consolidated Statements of Cash Flows

(Unaudited)

 

   For the Six Months Ended
March 31,
 
   2024   2023 
Cash Flows from Operating Activities:        
Net increase (decrease) in net assets resulting from operations  $9,906,141   $10,660,134 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:          
Proceeds from sale and settlements of investments   45,595,165    26,919,844 
Purchases, originations and participations   (30,835,453)   (25,975,213)
Investment increases due to payment-in-kind interest   (450,035)   (471,517)
Net amortization of premium (discount) on investments   (272,400)   (368,824)
Amortization of debt issuance cost   166,249    204,079 
Amortization of deferred financing cost   212,333    113,963 
Net realized (gains) losses from investments   1,560,898    801,349 
Net unrealized (gains) losses on investments   (9,186,818)   (8,038,309)
(Increase) decrease in operating assets:          
Interest receivable   50,346    1,927 
Due from affiliate   (4,917,719)   (121,627)
Receivable for investments sold   3,940,175    
-
 
Dividends receivable   (81,823)   
-
 
Paydown receivable   
-
    112,500 
Other receivable   31,425    36,992 
Prepaid share repurchase   66,724    364,828 
Other assets   (340,608)   474,188 
Increase (decrease) in operating liabilities:          
Due to broker   
-
    (16,550,000)
Payable for investments purchased   913,225    1,026,818 
Accounts payable and accrued expenses   (359,681)   (673,784)
Due to Affiliate   99,725    
-
 
Administrator expenses payable   75,000    (73,011)
Interest and fees payable   34,166    170,169 
Deferred revenue   (421,685)   9,905 
Other liabilities   (72,221)   (72,188)
Net cash provided by (used in) operating activities   15,713,129    (11,447,777)
Cash Flows from Financing Activities:          
Debt issuance   
-
    23,241,941 
Paydowns on debt   
-
    (22,521,800)
Debt issuance costs paid   
-
    (9,751)
Deferred financing costs   (237,777)   (912,275)
Repurchase of common shares   (2,339,779)   (354,653)
Net cash provided by (used in) financing activities   (2,577,556)   (556,538)
Net increase (decrease) in cash and cash equivalents   13,135,573    (12,004,315)
Cash and cash equivalents, beginning of period   5,988,223    22,768,066 
Cash and cash equivalents, end of period  $19,123,796   $10,763,751 
           
Supplemental information:          
Interest paid during the period  $2,667,051   $1,854,240 
Non-cash purchase of investments  $11,900,000   $
-
 
Non-cash sale of investments  $11,900,000   $
-
 

 

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

 

4

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of March 31, 2024

(Unaudited)

 

Company(1)  Industry  Type of
Investment
  Maturity  Par Amount/
Shares/Units(2)
   Amortized
Cost(3)
   Fair
Value(4)
   % of
Net
Assets(5)
 
                          
Non-Controlled/Non-Affiliated Investments: 
                          
1888 Industrial Services, LLC  Energy: Oil & Gas  Senior Secured First Lien Term Loan C  8/31/2024   350,000   $196,411   $350,000    0.23%
             350,000    196,411    350,000    0.23%
                              
Altisource S.A.R.L.(11)  Services: Business  Senior Secured First Lien Term Loan B  (SOFR + CSA + 5.00%, 3.75% PIK)(20)(24)  4/30/2025   13,700,174    10,725,095    10,042,228    6.50%
      Warrants(21)  5/22/2027   97,899    -    133,143    0.08%
             13,798,073    10,725,095    10,175,371    6.58%
                              
Arcline FM Holdings, LLC  Aerospace & Defense  First Lien Term Loans (SOFR + CSA + 4.75%, 0.75% Floor)(20)(24)  6/23/2028   2,665,823    2,577,794    2,652,493    1.71%
             2,665,823    2,577,794    2,652,493    1.71%
                              
Be Green Packaging, LLC  Containers, Packaging & Glass  Equity - 417 Common Units(21)      417    416,250    -    0.00%
             417    416,250    -    0.00%
                              
Boostability Seotowncenter, Inc.  Services: Business  Equity - 833,152 Common Units(21)      833,152    66,475    -    0.00%
             833,152    66,475    -    0.00%
                              
CB&L Associates Holdco I, LLC  Real Estate  First Lien Term Loan (SOFR + CSA+ 2.75%, 1.00% Floor)(14)(20)(23)  11/1/2025   5,827,281    4,915,259    5,302,825    3.44%
             5,827,281    4,915,259    5,302,825    3.44%
                              
Chimera Investment Corp.(11)  Real Estate  Equity - 117,310 Class C Preferred Units(13)(15)      117,310    2,884,724    2,404,855    1.56%
      Equity - 163,601 Class D Preferred Units, (SOFR + 5.38%)(13)(24)      193,754    4,182,010    4,793,474    3.11%
             311,064    7,066,734    7,198,329    4.67%
                              
Copper Property CTL Pass Through Trust  Real Estate  Equity Certificates(14)      622,795    7,767,811    6,118,961    3.97%
             622,795    7,767,811    6,118,961    3.97%
                              
Deer Management Systems LLC  Consumer Discretionary  First Lien Term Loan (SOFR + CSA + 8.25%, 3.00% Floor)(8)(20)(24)  5/1/2028   3,315,000    3,243,748    3,348,150    2.17%
             3,315,000    3,243,748    3,348,150    2.17%

 

5

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of March 31, 2024

(Unaudited)

 

Company(1)  Industry  Type of
Investment
  Maturity  Par Amount/
Shares/Units(2)
   Amortized
Cost(3)
   Fair
Value(4)
   % of
Net
Assets(5)
 
DirecTV Financing, LLC  Media: Broadcasting & Subscription  Senior Secured First Lien Term Loan (SOFR + CSA + 5.00%, 0.75% Floor)(14)(20)(23)  8/2/2027   3,812,783    3,812,783    3,827,081    2.48%
 
     First Lien Term Loan (SOFR + CSA + 5.25%, .0.75% Floor)(23)  8/2/2029   977,500    965,281    976,278    0.63%
             4,790,283    4,778,064    4,803,359    3.11%
                              
Epic Y-Grade Services, LP  Energy: Oil & Gas  First Lien Term Loan (SOFR + CSA + 6.00%, 1.00% Floor)(24)  6/30/2027   5,994,859    5,939,961    5,979,871    3.88%
             5,994,859    5,939,961    5,979,871    3.88%
                              
First Brands Group, LLC  Automotive  Senior Secured First Lien Term Loan (SOFR + CSA + 5.00%, 1.00% Floor)(20)(25)  3/30/2027   3,899,498    3,899,498    3,860,503    2.50%
             3,899,498    3,899,498    3,860,503    2.50%
                              
Franklin BSP Realty Trust, Inc.(11)  Real Estate  Equity - 66,107 Common Units(13)      66,107    907,782    883,190    0.57%
             66,107    907,782    883,190    0.57%
                              
Global Accessories Group, LLC  Consumer goods: Non-durable  Equity - 3.8% Membership Interest(21)      380    151,337    -    0.00%
             380    151,337    -    0.00%
                              
Innovate Corp.(11)  Construction & Building  8.50% Senior Secured Notes(14)  2/1/2026   4,250,000    3,714,663    3,065,313    1.99%
             4,250,000    3,714,663    3,065,313    1.99%
                              
Invesco Mortgage Capital, Inc.(11)  Real Estate  Equity - 205,000 Class C Preferred Units(13)(16)      205,000    5,035,506    4,532,550    2.94%
             205,000    5,035,506    4,532,550    2.94%
                              
NGS-WCS Group Holdings  Construction & Building  Senior Secured First Lien Term Loan B (SOFR + CSA+ 5.50%, 1.00% Floor)(20)(23)  11/12/2026   844,021    846,435    846,131    0.55%
JFL-NGS-WCS Partners, LLC  Construction & Building  Equity - 10,000,000 Units(21)      10,000,000    10,000,000    10,759,154    6.97%
             10,844,021    10,846,435    11,605,285    7.52%
                              
Lighting Science Group Corporation  Containers, Packaging & Glass  Warrants - 0.62% of Outstanding Equity(21)      5,000,000    955,680    -    0.00%
             5,000,000    955,680    -    0.00%

 

6

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of March 31, 2024

(Unaudited)

 

Company(1)  Industry  Type of
Investment
  Maturity  Par Amount/
Shares/Units(2)
   Amortized
Cost(3)
   Fair
Value(4)
   % of
Net
Assets(5)
 
Lucky Bucks, LLC  Consumer Discretionary  Priority Second Out Term LoanTL(SOFR + CSA + 7.50%, 1.00% Floor)(20)(23)  10/2/2029  $1,357,837   $1,330,680   $1,357,836    0.88%
      Priority First Out Exit Term LoanTL(SOFR + CSA + 7.50%, 1.00% Floor)(20)(23)  10/2/2028   687,817    624,953    687,817    0.45%
      Equity - 180,739 Membership Units(21)      180,739    174,393    1,566,290    1.02%
             2,226,393    2,130,026    3,611,943    2.35%
                              
McKissock Investment Holdings, LLC (dba Colibri)  Services: Consumer  Senior Secured First Lien Term Loan (SOFR + CSA + 5.00%, 0.75% Floor)(20)(24)  3/10/2029   4,899,999    4,861,787    4,850,543    3.14%
             4,899,999    4,861,787    4,850,543    3.14%
                              
MFA Financial, Inc.(11)  Real Estate  Equity - 97,426 Class C Preferred Units(13)(24)      97,426    2,318,487    2,160,909    1.40%
             97,426    2,318,487    2,160,909    1.40%
                              
New York Mortgage Trust, Inc.(11)  Real Estate  Equity - 165,000 Class E Preferred Units(13)(18)      165,000    4,102,076    3,790,050    2.46%
             165,000    4,102,076    3,790,050    2.46%
                              
PHH Mortgage Corp.  Banking, Finance, Insurance & Real Estate  7.875% Senior Secured Note(14)  3/15/2026   9,686,000    8,780,720    9,306,631    6.03%
             9,686,000    8,780,720    9,306,631    6.03%
                              
Point.360  Services: Business  Senior Secured First Lien Term Loan (LIBOR + 6.00% PIK)(10)(21)  7/8/2020   2,777,366    2,103,712    -    0.00%
             2,777,366    2,103,712    -    0.00%
                              
Power Stop LLC  Automotive  Senior Secured First Lien Term Loan (SOFR + CSA + 4.75%, 0.50% Floor)(20)(23)  1/26/2029   6,884,353    6,485,730    6,195,918    4.02%
             6,884,353    6,485,730    6,195,918    4.02%
                              
Rithm Capital Corp.(11)  Banking  Equity - 206,684 Class B Preferred Units(13)(24)      206,684    5,129,170    5,047,223    3.27%
             206,684    5,129,170    5,047,223    3.27%
                              
Secure Acquisition Inc. (dba Paragon Films)  Packaging  Senior Secured First Lien Term Loan (SOFR + CSA + 5.00%, 0.50% Floor)(20)(24)  12/16/2028   3,527,463    3,516,477    3,527,463    2.29%
             3,527,463    3,516,477    3,527,463    2.29%

 

7

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of March 31, 2024

(Unaudited)

 

Company(1)  Industry  Type of
Investment
  Maturity  Par Amount/
Shares/Units(2)
   Amortized
Cost(3)
   Fair
Value(4)
   % of
Net
Assets(5)
 
SMC Roofing  Services: Consumer  First Out Term Loan (SOFR + CSA + 3.50%, 2.00% Floor)(24)  10/16/2028   660,714    654,107    654,107    0.42%
      First Out Delayed Draw Term Loan (SOFR + CSA + 3.50%, 2.00% Floor)(8)(24)  10/16/2028   -    (446)   -    0.00%
      Last Out Term Loan (SOFR + CSA + 11.75%, 2.00% Floor)(24)  10/16/2028   1,863,568    1,821,638    1,821,638    1.18%
      Last Out Delayed Draw Term Loan (SOFR + CSA + 11.75%, 2.00% Floor)(8)(24)  10/16/2028   -    (3,864)   -    0.00%
             2,524,282    2,471,435    2,475,745    1.60%
                              
SS Acquisition, LLC (dba Soccer Shots Franchising)  Services: Consumer  Senior Secured First Lien Term Loan (SOFR + CSA + 6.50%, 1.00% Floor)(20)(23)  12/30/2026   6,666,667    6,602,650    6,666,667    4.32%
      Senior Secured First Lien Delayed Draw Term Loan  (SOFR + CSA + 6.50%, 1.00% Floor)(20)(23)  12/30/2026   3,200,000    3,165,673    3,200,000    2.07%
             9,866,667    9,768,323    9,866,667    6.39%
                              
Stancor (dba Industrial Flow Solutions Holdings, LLC)  Services: Business  Equity - 358,867 Class A Units(21)      358,867    345,491    375,719    0.24%
             358,867    345,491    375,719    0.24%
                              
Staples, Inc.  Services: Consumer  First Lien Term Loan (LIBOR + 4.50%)(14)(22)  9/12/2024   3,672,879    3,636,583    3,661,401    2.38%
             3,672,879    3,636,583    3,661,401    2.38%
                              
Tamarix Capital Partners II, L.P.(8)(11)  Banking  Fund Investment(8)(21)       N/A     1,026,818    783,465    0.52%
             -    1,026,818    783,465    0.52%
                              
Thryv Holdings, Inc.(11)  Media: Broadcasting & Subscription  Senior Secured First Lien Term Loan (SOFR + CSA + 8.50%, 1.00% Floor)(14)(20)(23)  3/1/2026   6,869,478    6,809,553    6,878,065    4.47%
             6,869,478    6,809,553    6,878,065    4.47%
                              
Velocity Pooling Vehicle, LLC  Automotive  Equity - 5,441 Class A Units(21)      5,441    302,464    -    0.00%
      Warrants - 0.65% of Outstanding Equity(21)  3/30/2028   6,506    361,667    -    0.00%
             11,947    664,131    -    0.00%
                              
Wingman Holdings, Inc.  Aerospace & Defense  Equity - 350 Common Shares(21)      350    700,000    -    0.00%
             350    700,000    -    0.00%
                              
Subtotal Non-Controlled/Non-Affiliated Investments            116,548,907   $138,055,022   $132,407,942    
85.841
%

 

8

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of March 31, 2024

(Unaudited)

 

Company(1)  Industry  Type of
Investment
  Maturity  Par Amount/
Shares/Units(2)
   Amortized
Cost(3)
   Fair
Value(4)
   % of
Net
Assets(5)
 
  
Affiliated Investments:(6) 
                              
Black Angus Steakhouses, LLC  Hotel, Gaming & Leisure  Senior Secured First Lien Delayed Draw Term Loan  (SOFR + CSA + 9.00% PIK, 1.00% Floor)(10)(20)(23)  1/31/2025   908,080    $875,749   875,749    0.57%
      Senior Secured First Lien Term Loan (SOFR + CSA + 9.00% PIK, 1.00% Floor)(10)(20)(23)  1/31/2025   13,513,874    7,767,533    810,832    0.53%
      Senior Secured First Lien Super Priority Delayed Draw Term Loan (SOFR + CSA + 9.00% PIK, 1.00% Floor)(10)(20)(23)  1/31/2025   1,991,878    1,920,960    1,920,960    1.25%
      Equity - 17.92% Membership Interest(21)      -    -    -    0.00%
             16,413,832    10,564,242    3,607,541    2.35%
                              
FST Holdings Parent, LLC  High Tech Industries  Equity - 625,548 Class A Units      625,548    10,000,000    10,726,326    6.95%
             625,548    10,000,000    10,726,326    6.95%
                              
Subtotal Affiliated Investments            17,039,380   $20,564,242   $14,333,867    9.30%

 

9

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of March 31, 2024

(Unaudited)

 

Company(1)  Industry  Type of
Investment
  Maturity  Par Amount/
Shares/Units(2)
   Amortized
Cost(3)
   Fair
Value(4)
   % of
Net
Assets(5)
 
                              
Controlled Investments:(7)                             
                              
FlexFIN, LLC  Services: Business  Equity Interest      34,729,225   $34,729,225   $34,729,225    22.51%
             34,729,225    34,729,225    34,729,225    22.51%
                              
Kemmerer Operations, LLC  Metals & Mining  Senior Secured First Lien Term Loan (15.00% PIK)  6/21/2025   3,286,036    3,286,036    3,286,036    2.13%
Kemmerer Holdings, LLC  Metals & Mining  Equity - 37 Common Units(21)      37    4,136,157    12,166,174    7.89%
             3,286,073    7,422,193    15,452,210    10.02%
                              
NSG Captive, Inc.  Insurance  Equity - 100,000 Units(21)      100,000    100,000    100,000    0.06%
             100,000    100,000    100,000    0.06%
                              
NVTN LLC  Hotel, Gaming & Leisure  Senior Secured First Lien Delayed Draw Term Loan  (SOFR + 8.25%, 2.00% Floor)(23)  12/31/2026   5,500,000    5,604,805    5,500,000    3.57%
      Senior Secured First Lien Term Loan B  (SOFR + 9.25% PIK, 2.00% Floor)(10)  12/31/2026   17,552,420    13,916,082    17,526,090    11.36%
      Senior Secured First Lien Term Loan C (SOFR + 12.00% PIK, 2.00% Floor)(10)  12/31/2026   11,506,159    7,570,055    -    0.00%
      Equity - 1,000 Class A Units      1,000    21,450,924    -    0.00%
             34,559,579    48,541,866    23,026,090    14.93%
                              
Subtotal Control Investments      72,674,877   $90,793,284   $73,307,525    47.52%
                              
   Total Investments, March 31, 2024   206,263,164   $249,412,548   $220,049,334    142.66%

 

(1) All of our investments are domiciled in the United States. Certain investments also have international operations.
(2) Par amount is presented for debt investments and the amount includes accumulated payment-in-kind (“PIK”) interest, as applicable, and is net of repayments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars (“$”) unless otherwise noted.
(3) Net unrealized depreciation for U.S. federal income tax purposes totaled $(29,363,214). The tax cost basis of investments is $249,412,548 as of March 31, 2024. The amortized cost represents the original cost adjusted for the amortization or accretion of premium or discount, as applicable, on debt investments using the effective interest method.
(4) Unless otherwise indicated, all securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy (see Note 4).
(5) Percentage is based on net assets of $154,271,897  as of March 31, 2024.
(6) Affiliated Investments are defined by the 1940 Act as investments in companies in which the Company owns between 5% and 25% outstanding voting securities or is under common control with such portfolio company.
(7) Control Investments are defined by the Investment Company Act of 1940, as amended (the “1940 Act”), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
(8) The investment has an unfunded commitment as of March 31, 2024 (see Note 8), and fair value includes the value of any unfunded commitments. The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. The negative fair value, if applicable, is the result of the capitalized discount on the loan.
(9) Not in use.
(10) The investment was on non-accrual status as of March 31, 2024.

 

10

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of March 31, 2024

(Unaudited)

 

(11) The investment is not a qualifying asset as defined under Section 55(a) of 1940 Act, in a whole, or in part. As of March 31, 2024, non-qualifying assets represented 17.97% of total assets.
(12) This investment earns 0.50% commitment fee on all unused commitment as of March 31, 2024, and is recorded as a component of interest income on the Consolidated Statements of Operations.
(13) This investment represents a Level 1 security in the ASC 820 table as of March 31, 2024 (see Note 4).
(14) This investment represents a Level 2 security in the ASC 820 table as of March 31, 2024 (see Note 4).
(15) The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 4.743% spread on 9/30/2025.
(16) The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 5.29% spread on 9/27/2027.
(17) Not in use
(18) The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 6.429% spread on 1/15/2025.
(19) Not in use
(20) Credit Spread Adjustment (“CSA”)
(21) Non-income producing security.
(22) The interest rate on these loans is subject to 1 month LIBOR, which as of March 31, 2024 was 5.44%.
(23) The interest rate on these loans is subject to 1 month SOFR, which as of March 31, 2024 was 5.32%
(24) The interest rate on these loans is subject to 3 month SOFR, which as of March 31, 2024 was 5.35%.
(25) The interest rate on these loans is subject to 6 month SOFR, which as of March 31, 2024 was 5.39%.

 

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

 

11

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of September 30, 2023

 

Company(1)  Industry  Type of
Investment
  Maturity  Par Amount/
Shares/Units(2)
   Amortized
Cost(3)
   Fair
Value(4)
   % of 
Net
Assets(5)
 
                          
Non-Controlled/Non-Affiliated Investments:                   
                    
Altisource S.A.R.L.(11)  Services: Business  Senior Secured First Lien Term Loan B
(SOFR + CSA + 5.00%, 3.75% PIK)(20)(25)
  4/30/2025  $9,565,710   $8,507,963   $7,805,619    5.31%
      Warrants(21)  5/22/2027   75,080    -    206,470    0.14%
             9,640,790    8,507,963    8,012,089    5.45%
                              
Arcline FM Holdings, LLC  Aerospace & Defense  First Lien Term Loans
(SOFR + CSA + 4.75%, 0.75% Floor)(20)(25)
  6/23/2028   2,679,494    2,591,013    2,644,660    1.80%
             2,679,494    2,591,013    2,644,660    1.80%
                              
Be Green Packaging, LLC  Containers, Packaging & Glass  Equity - 417 Common Units(21)      417    416,250    -    0.00%
             417    416,250    -    0.00%
                              
Boostability Seotowncenter, Inc.  Services: Business  Equity - 833,152 Common Units(21)      833,152    66,475    -    0.00%
             833,152    66,475    -    0.00%
                              
CB&L Associates Holdco I, LLC (11)  Banking, Finance, Insurance & Real Estate  First Lien Term Loan
(SOFR + CSA+ 2.75%, 1.00% Floor)(14)(20)(24)
  11/1/2025   5,916,102    4,990,179    5,191,380    3.53%
             5,916,102    4,990,179    5,191,380    3.53%
                              
Chimera Investment Corp.(11)  Banking, Finance, Insurance & Real Estate  Equity - 117,310 Class C Preferred Units(13)(15)      117,310    2,884,724    2,116,271    1.44%
      Equity - 163,601 Class D Preferred Units(13)(9)      163,601    3,463,275    3,414,353    2.32%
             280,911    6,347,999    5,530,624    3.76%

 

12

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of September 30, 2023

 

Company(1)  Industry  Type of
Investment
  Maturity  Par Amount/
Shares/Units(2)
   Amortized
Cost(3)
   Fair
Value(4)
   % of 
Net
Assets(5)
 
Copper Property CTL Pass Through Trust  Banking, Finance, Insurance & Real Estate  Equity Certificates(14)      597,795    7,547,670    6,217,067    4.23%
                              
DataOnline Corp.  High Tech Industries  Senior Secured First Lien Term Loan
(SOFR + CSA + 5.50%, 1.00% Floor)(20)(25)
  11/13/2025   4,812,500    4,812,500    4,764,375    3.24%
      Revolving Credit Facility
(SOFR + CSA + 5.50%, 1.00% Floor)(20)(25)
  11/13/2025   714,286    714,286    707,143    0.48%
             5,526,786    5,526,786    5,471,518    3.72%
                              
Deer Management Systems LLC  Consumer Discretionary  First Lien Term Loan
(SOFR + CSA + 8.25%, 3.00% Floor)(8)(20)(25)
  5/1/2028   3,357,500    3,294,306    3,323,925    2.26%
                                
DirecTV Financing, LLC  Media: Broadcasting & Subscription  Senior Secured First Lien Term Loan
(SOFR + CSA + 5.00%, 0.75% Floor)(14)(20)(24)
  8/2/2027   4,100,000    4,100,000    4,003,908     2.72 %
             4,100,000    4,100,000    4,003,908     2.72 %
                                 
First Brands Group, LLC  Automotive  Senior Secured First Lien Term Loan
(SOFR + CSA + 5.00%, 1.00% Floor)(20)(26)
  3/30/2027   3,919,598    3,919,598    3,880,402     2.64 %
             3,919,598    3,919,598    3,880,402     2.64 %
                                 
Franklin BSP Realty Trust, Inc.(11)  Banking, Finance, Insurance & Real Estate  Equity - 226,107 Common Units(13)      226,107    3,572,788    2,993,657     2.04 %
             226,107    3,572,788    2,993,657     2.04 %

 

13

 

 

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of September 30, 2023

 

Company(1)  Industry  Type of
Investment
  Maturity  Par Amount/
Shares/Units(2)
   Amortized
Cost(3)
   Fair
Value(4)
   % of 
Net
Assets(5)
 
Global Accessories Group, LLC  Consumer goods: Non-durable  Equity - 3.8% Membership Interest(21)      380    151,337    -    0.00%
             380    151,337    -    0.00%
                              
Innovate Corp.(11)  Construction & Building  8.50% Senior Secured Notes(14)  2/1/2026   2,750,000    2,615,913    2,076,250    1.41%