Company Quick10K Filing
Quick10K
THL Credit
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-08 Earnings, Exhibits
8-K 2019-06-17 Shareholder Vote
8-K 2019-05-09 Earnings, Exhibits
8-K 2019-03-26 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-03-06 Earnings, Exhibits
8-K 2019-01-10 Amend Bylaw, Exhibits
8-K 2018-11-07 Earnings, Exhibits
8-K 2018-11-05 Leave Agreement
8-K 2018-10-05 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-08-08 Earnings, Exhibits
8-K 2018-06-07 Shareholder Vote
8-K 2018-04-02 Officers, Exhibits
8-K 2018-03-12 Other Events, Exhibits
HEES H&E Equipment Services 860
FLY Fly Leasing 675
FTEO Fronteo 177
ACV Alberto-Culver 0
CMFN CM Finance 0
KCAP Kcap Financial 0
FDUS Fidus Investment 0
SLRC Solar Capital 0
GAIN Gladstone Investment Corporation 0
HTGC Hercules Capital 0
TCRD 2019-06-30
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 tcrd-ex311_8.htm
EX-31.2 tcrd-ex312_9.htm
EX-32.1 tcrd-ex321_7.htm
EX-32.2 tcrd-ex322_6.htm

THL Credit Earnings 2019-06-30

TCRD 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 tcrd-10q_20190630.htm 10-Q tcrd-10q_20190630.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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 June 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 814-00789

 

THL CREDIT, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

 

 

Delaware

 

27-0344947

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

100 Federal St., 31st Floor, Boston, MA

 

02110

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: 800-450-4424

 

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

 

Title of Each Class

Trading Symbols

 

Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share

TCRD

 

NASDAQ Global Select Market

6.75% Senior Notes due 2022

TCRZ

 

The New York Stock Exchange

6.125% Senior Notes due 2023

TCRW

 

The 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, as amended, 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

 

  (Do not check if a smaller reporting company)

 

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 number of shares of the registrant’s common stock, $0.001 par value per share, outstanding at August 7, 2019 was 31,064,603.

 

 

 


THL CREDIT, INC.

FORM 10-Q FOR THE QUARTER ENDED June 30, 2019

Table of Contents

 

 

 

INDEX

 

PAGE
NO.

PART I.

  

FINANCIAL INFORMATION

  

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

 

 

 

 

 

 

 

 

Consolidated Statements of Assets and Liabilities as of June 30, 2019 (unaudited) and December 31, 2018

 

4

 

 

 

 

 

 

 

Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018 (unaudited)

 

5

 

 

 

 

 

 

 

Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2019 and 2018 (unaudited)

 

6

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 (unaudited)

 

7

 

 

 

 

 

 

 

Consolidated Schedules of Investments as of June 30, 2019 (unaudited) and December 31, 2018

 

8

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

25

 

 

 

 

 

Item 2.

 

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

 

69

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

100

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

101

 

 

 

 

 

PART II.

 

OTHER INFORMATION

 

102

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

102

 

 

 

 

 

Item 1A.

 

Risk Factors

 

102

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

103

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

103

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

103

 

 

 

 

 

Item 5.

 

Other Information

 

103

 

 

 

 

 

Item 6.

 

Exhibits

 

104

 

 

 

 

 

SIGNATURES

 

105

 

 

2


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report, and other statements that we may make, may contain forward-looking statements with respect to future financial or business performance, strategies or expectations, anticipated share repurchases or lack thereof, our plans and expectations about future investments, amount and timing of distributions, if any, and the future liquidity of the company. Forward-looking statements are typically identified by words or phrases such as “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “potential,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and we assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously identified elsewhere in this filing, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:

 

the introduction, withdrawal, success and timing of business initiatives and strategies;

 

changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the value of our assets;

 

the relative and absolute investment performance and operations of our investment adviser;

 

the impact of increased competition;

 

the impact of future acquisitions and divestitures;

 

the resolution of legal proceedings;

 

our business prospects and the prospects of our portfolio companies;

 

the impact, extent and timing of technological changes and the adequacy of intellectual property protection;

 

the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or THL Credit Advisors LLC, the Advisor;

 

the ability of the Advisor to identify suitable investments for us and to monitor and administer our investments;

 

our contractual arrangements and relationships with third parties;

 

any future financings by us;

 

the ability of the Advisor to attract and retain highly talented professionals;

 

fluctuations in foreign currency exchange rates;

 

the impact of changes to tax legislation and, generally, our tax position;

 

our ability to exit a control investment in a timely manner; and

 

the ability to fund Logan JV’s unfunded commitments to the extent approved by each member of the Logan JV investment committee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3


THL Credit, Inc. and Subsidiaries

Consolidated Statements of Assets and Liabilities

(in thousands, except per share data)

(unaudited)

 

 

June 30, 2019

 

 

December 31, 2018

 

Assets:

 

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

 

Non-controlled, non-affiliated  investments (cost of $296,338 and $333,023,

   respectively)

$

284,598

 

 

$

313,377

 

Controlled investments (cost of $186,966 and $181,325, respectively)

 

178,746

 

 

 

167,733

 

Non-controlled, affiliated investments  (cost of $25,292 and $25,292, respectively)

 

641

 

 

 

12,543

 

Cash

 

4,038

 

 

 

6,860

 

Interest, dividends, and fees receivable

 

5,934

 

 

 

5,480

 

Escrow and other receivables

 

5,639

 

 

 

7,306

 

Deferred tax assets

 

2,188

 

 

 

2,056

 

Deferred financing costs

 

1,871

 

 

 

2,314

 

Prepaid expenses and other assets

 

501

 

 

 

198

 

Distributions receivable

 

311

 

 

 

207

 

Due from affiliate

 

224

 

 

 

377

 

Total assets

$

484,691

 

 

$

518,451

 

Liabilities:

 

 

 

 

 

 

 

Loans payable

$

102,749

 

 

$

107,657

 

Notes payable ($111,607 and $111,607 face amounts, respectively, reported net of

   deferred financing costs of $3,142 and $3,541, respectively)

 

108,466

 

 

 

108,067

 

Accrued expenses and other liabilities

 

2,471

 

 

 

1,652

 

Deferred tax liability

 

1,831

 

 

 

1,972

 

Base management fees payable (net of waiver of $525 and $0, respectively)

 

1,290

 

 

 

2,112

 

Accrued incentive fees

 

676

 

 

 

677

 

Accrued interest and fees

 

423

 

 

 

633

 

Total liabilities

 

217,906

 

 

 

222,770

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

 

Net Assets:

 

 

 

 

 

 

 

Common stock, par value $.001 per share, 100,000 common shares authorized, 31,419

   and 32,318 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively

 

31

 

 

 

32

 

Paid-in capital in excess of par

 

425,288

 

 

 

431,361

 

Accumulated deficit

 

(158,534

)

 

 

(135,712

)

Total net assets

$

266,785

 

 

$

295,681

 

Total liabilities and net assets

$

484,691

 

 

$

518,451

 

Net asset value per share attributable to THL Credit, Inc.

$

8.49

 

 

$

9.15

 

 

See accompanying notes to these consolidated financial statements.

 

4


THL Credit, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

8,150

 

 

$

12,780

 

 

$

16,564

 

 

$

24,986

 

Dividend income

 

 

 

 

 

17

 

 

 

 

 

 

17

 

Other income

 

 

1,745

 

 

 

432

 

 

 

2,199

 

 

 

551

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

34

 

 

 

609

 

 

 

67

 

 

 

609

 

Other income

 

 

195

 

 

 

288

 

 

 

392

 

 

 

543

 

From controlled investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,430

 

 

 

1,363

 

 

 

2,778

 

 

 

2,767

 

Dividend income

 

 

3,770

 

 

 

2,827

 

 

 

7,477

 

 

 

5,440

 

Other income

 

 

38

 

 

 

41

 

 

 

75

 

 

 

133

 

Total investment income

 

 

15,362

 

 

 

18,357

 

 

 

29,552

 

 

 

35,046

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on borrowings

 

 

3,243

 

 

 

3,791

 

 

 

6,641

 

 

 

7,357

 

Base management fees

 

 

1,815

 

 

 

2,333

 

 

 

3,725

 

 

 

4,652

 

Incentive fees

 

 

 

 

 

(9

)

 

 

 

 

 

(9

)

Administrator expenses

 

 

392

 

 

 

537

 

 

 

842

 

 

 

1,128

 

Other general and administrative expenses

 

 

362

 

 

 

573

 

 

 

734

 

 

 

996

 

Amortization of deferred financing costs

 

 

335

 

 

 

312

 

 

 

1,030

 

 

 

620

 

Professional fees

 

 

552

 

 

 

373

 

 

 

949

 

 

 

710

 

Directors' fees

 

 

176

 

 

 

204

 

 

 

364

 

 

 

398

 

Total expenses

 

 

6,875

 

 

 

8,114

 

 

 

14,285

 

 

 

15,852

 

Management fee waiver

 

 

(525

)

 

 

 

 

 

(525

)

 

 

 

Total expenses, net of management fee waivers

 

 

6,350

 

 

 

8,114

 

 

 

13,760

 

 

 

15,852

 

Income tax provision, excise and other taxes

 

 

161

 

 

 

144

 

 

 

238

 

 

 

268

 

Net investment income

 

 

8,851

 

 

 

10,099

 

 

 

15,554

 

 

 

18,926

 

Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation) on Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized (loss) gain on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(24,066

)

 

 

(22,254

)

 

 

(26,483

)

 

 

(35,467

)

Non-controlled, affiliated investments

 

 

 

 

 

(3,125

)

 

 

 

 

 

(3,125

)

Controlled investments

 

 

 

 

 

245

 

 

 

442

 

 

 

343

 

Foreign currency transactions

 

 

(1

)

 

 

(202

)

 

 

2

 

 

 

(203

)

Net realized loss on investments

 

 

(24,067

)

 

 

(25,336

)

 

 

(26,039

)

 

 

(38,452

)

Net change in unrealized appreciation (depreciation) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

18,588

 

 

 

16,349

 

 

 

7,907

 

 

 

26,919

 

Non-controlled, affiliated investments

 

 

(12,343

)

 

 

3,091

 

 

 

(11,901

)

 

 

3,091

 

Controlled investments

 

 

(540

)

 

 

(2,723

)

 

 

5,371

 

 

 

(3,044

)

Translation of assets and liabilities in foreign currencies

 

 

(323

)

 

 

533

 

 

 

(641

)

 

 

1,193

 

Net change in unrealized appreciation on investments

 

 

5,382

 

 

 

17,250

 

 

 

736

 

 

 

28,159

 

Net change in unrealized depreciation attributable to non-controlling interests

 

 

 

 

 

(353

)

 

 

 

 

 

(601

)

Net realized and unrealized loss from investments

 

 

(18,685

)

 

 

(8,439

)

 

 

(25,303

)

 

 

(10,894

)

Benefit (provision) for taxes on unrealized gain/loss on investments

 

 

164

 

 

 

(121

)

 

 

271

 

 

 

(154

)

Net (decrease) increase in net assets resulting from operations

 

$

(9,670

)

 

$

1,539

 

 

$

(9,478

)

 

$

7,878

 

Net investment income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.28

 

 

$

0.31

 

 

$

0.49

 

 

$

0.58

 

Net (decrease) increase in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.30

)

 

$

0.05

 

 

$

(0.30

)

 

$

0.24

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

31,769

 

 

 

32,674

 

 

 

32,028

 

 

 

32,674

 

 

See accompanying notes to these consolidated financial statements.

5


THL Credit, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets

(in thousands)

(unaudited)

 

 

 

For the six months ended June 30,

 

 

 

2019

 

 

2018

 

(Decrease) increase in net assets from operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

15,554

 

 

$

18,926

 

Net realized loss on investments

 

 

(26,039

)

 

 

(38,452

)

Net change in unrealized appreciation on investments

 

 

736

 

 

 

28,159

 

Net change in unrealized (depreciation) attributable to

   non-controlling interests

 

 

 

 

 

(601

)

Benefit (provision) for taxes on unrealized (loss) gain on investments

 

 

271

 

 

 

(154

)

Net (decrease) increase in net assets resulting from operations

 

 

(9,478

)

 

 

7,878

 

Distributions to stockholders:

 

 

 

 

 

 

 

 

Distributions to stockholders from net investment income

 

 

(13,399

)

 

 

(17,644

)

Total distributions to stockholders

 

 

(13,399

)

 

 

(17,644

)

Capital share transactions:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(6,019

)

 

 

 

Net decrease in net assets from capital share transactions

 

 

(6,019

)

 

 

 

Total decrease in net assets

 

 

(28,896

)

 

 

(9,766

)

Net assets at beginning of period

 

 

295,681

 

 

 

344,029

 

Net assets at end of period

 

$

266,785

 

 

$

334,263

 

Common shares outstanding at end of period

 

 

31,419

 

 

 

32,674

 

Capital share activity:

 

 

 

 

 

 

 

 

Shares repurchased

 

 

899

 

 

 

 

 

See accompanying notes to these consolidated financial statements.

6


THL Credit, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

For the six months ended

June 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net (decrease) increase in net assets resulting from operations

 

$

(9,478

)

 

$

7,878

 

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

 

 

 

 

 

 

 

 

Net change in unrealized appreciation on investments

 

 

(736

)

 

 

(27,559

)

Net realized loss on investments

 

 

28,594

 

 

 

38,660

 

Net realized (gain) loss on foreign exchange currency transactions

 

 

(2

)

 

 

163

 

Increase in investments due to interest paid-in-kind

 

 

(1,340

)

 

 

(468

)

Amortization of deferred financing costs

 

 

1,030

 

 

 

620

 

Accretion of discounts on investments and other fees

 

 

(666

)

 

 

(1,920

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(80,225

)

 

 

(36,418

)

Proceeds from sale and paydown of investments

 

 

84,564

 

 

 

69,134

 

(Increase) decrease in interest, dividends and fees receivable

 

 

(455

)

 

 

121

 

Decrease in deferred offering costs

 

 

 

 

 

148

 

Decrease (increase) in due from affiliates

 

 

154

 

 

 

(163

)

(Increase) decrease in deferred tax asset

 

 

(130

)

 

 

614

 

Decrease in prepaid expenses and other assets

 

 

1,484

 

 

 

228

 

Increase (decrease) in accrued expenses and other liabilities

 

 

835

 

 

 

(295

)

Decrease in accrued credit facility fees and interest

 

 

(210

)

 

 

(214

)

Decrease in deferred tax liability

 

 

(141

)

 

 

(503

)

Decrease in base management fees payable, net

 

 

(823

)

 

 

(223

)

Decrease in accrued incentive fees payable, net

 

 

 

 

 

(84

)

Net cash provided by operating activities

 

 

22,455

 

 

 

49,719

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(6,019

)

 

 

 

Borrowings under credit facility

 

 

52,700

 

 

 

31,000

 

Repayments under credit facility

 

 

(58,250

)

 

 

(54,088

)

Distributions paid to stockholders

 

 

(13,399

)

 

 

(17,644

)

Financing costs paid

 

 

(309

)

 

 

(59

)

Net cash (used in) financing activities

 

 

(25,277

)

 

 

(40,791

)

Net (decrease) increase in cash

 

 

(2,822

)

 

 

8,928

 

Cash, beginning of period

 

 

6,860

 

 

 

3,617

 

Cash, end of period

 

$

4,038

 

 

$

12,545

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

Cash interest paid

 

$

6,334

 

 

$

6,919

 

Income taxes paid

 

$

6

 

 

$

6

 

PIK income earned

 

$

1,407

 

 

$

772

 

 

Non-cash Operating Activities:

See Note 5 in the notes to consolidated financial statements for non-cash restructurings.

See accompanying notes to these consolidated financial statements.

 

 

7


THL Credit, Inc. and Subsidiaries

Consolidated Schedules of Investments

June 30, 2019

(dollar amounts in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

Initial

 

Maturity/

 

Principal(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition

 

Dissolution

 

No. of Shares /

 

 

 

 

 

 

 

 

 

Type of Investment/Portfolio company (1)(2)(3)

 

Industry

 

Interest Rate(4)

 

 

Date

 

Date

 

No. of Units

 

 

Amortized Cost

 

 

Fair Value (6)

 

Non-controlled/non-affiliated investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—106.68% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First lien senior secured debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—92.89% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—7.63% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairstone Financial Inc. (7)(22)

 

Financial services

 

9.0% (LIBOR + 7.0%)

 

 

3/31/2017

 

3/31/2023

 

$

15,305

 

 

$

15,001

 

 

$

15,458

 

PDFTron Systems Inc. (7)

 

IT services

 

8.2% (LIBOR + 5.8%)

 

 

5/15/2019

 

5/15/2024

 

 

5,000

 

 

 

4,951

 

 

 

4,900

 

PDFTron Systems Inc. (7)(10)(27)

 

IT services

 

8.2% (LIBOR + 5.8%)

 

 

5/15/2019

 

5/15/2024

 

 

 

 

 

(11

)

 

 

 

PDFTron Systems Inc. (7)(9)(10)

 

IT services

 

8.2% (LIBOR + 5.8%)

 

 

5/15/2019

 

5/15/2024

 

 

 

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Canada

 

$

20,305

 

 

$

19,936

 

 

$

20,358

 

Midwest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—7.50% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-800 Hansons, LLC

 

Consumer products and services

 

9.8% (LIBOR + 7.5%) (9.8% Cash  + 1.0% PIK)

 

 

10/19/2017

 

10/19/2022

 

$

3,755

 

 

$

3,709

 

 

$

3,530

 

1-800 Hansons, LLC (9)

 

Consumer products and services

 

8.8% (LIBOR + 6.5%)

 

 

10/19/2017

 

10/19/2022

 

 

116

 

 

 

112

 

 

 

109

 

IRC Opco LLC

 

Healthcare

 

7.9% (LIBOR + 5.5%)

 

 

1/4/2019

 

1/4/2024

 

 

5,427

 

 

 

5,380

 

 

 

5,427

 

IRC Opco LLC (9)

 

Healthcare

 

7.9% (LIBOR + 5.5%)

 

 

1/4/2019

 

1/4/2024

 

 

218

 

 

 

211

 

 

 

218

 

Matilda Jane Holdings, Inc.

 

Consumer products and services

 

10.9% (LIBOR + 8.5%)

 

 

4/28/2017

 

4/28/2022

 

 

11,408

 

 

 

11,261

 

 

 

10,723

 

 

 

 

 

 

 

 

 

 

 

Subtotal midwest

 

$

20,924

 

 

$

20,673

 

 

$

20,007

 

Northeast

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—12.70% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certify, Inc.

 

IT services

 

8.2% (LIBOR + 5.8%)

 

 

2/28/2019

 

2/28/2024

 

 

1,544

 

 

 

1,522

 

 

 

1,521

 

Certify, Inc. (28)

 

IT services

 

8.2% (LIBOR + 5.8%)

 

 

2/28/2019

 

2/28/2024

 

 

35

 

 

 

34

 

 

 

35

 

Certify, Inc. (9) (10)

 

IT services

 

8.2% (LIBOR + 5.8%)

 

 

2/28/2019

 

2/28/2024

 

 

 

 

 

(1

)

 

 

 

DataOnline Corp.

 

IT services

 

8.3% (LIBOR + 5.8%)