pnnt-10q_20200630.htm

`

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q 

 

(Mark One)

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

 

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2020

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: 814-00736

 

PENNANTPARK INVESTMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

MARYLAND

 

20-8250744

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

590 Madison Avenue, 15th Floor

New York, N.Y.

 

10022

(Address of principal executive offices)

 

(Zip Code)

 

(212) 905-1000

(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

PNNT

The Nasdaq Stock Market LLC

5.50% Notes due 2024

PNNTG

The Nasdaq Stock Market LLC

 

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 Exchange Act).    Yes  ☐  No  

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of August 5, 2020 was 67,045,105.

 


 

PENNANTPARK INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2020

TABLE OF CONTENTS

 

 

 

 

 

PART I. CONSOLIDATED FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Consolidated Financial Statements

 

 

 

 

 

Consolidated Statements of Assets and Liabilities as of June 30, 2020 (unaudited) and September 30, 2019

 

4

 

 

 

Consolidated Statements of Operations for the three and nine months ended June 30, 2020 and 2019 (unaudited)

 

5

 

 

 

Consolidated Statements of Changes in Net Assets for the three and nine months ended June 30, 2020 and 2019 (unaudited)

 

6

 

 

 

Consolidated Statements of Cash Flows for the nine months ended June 30, 2020 and 2019 (unaudited)

 

7

 

 

 

Consolidated Schedules of Investments as of June 30, 2020 (unaudited) and September 30, 2019

 

8

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

15

 

 

 

Report of Independent Registered Public Accounting Firm

 

26

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

27

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

35

 

 

 

Item 4. Controls and Procedures

 

36

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

Item 1. Legal Proceedings

 

37

 

 

 

Item 1A. Risk Factors

 

37

 

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

39

 

 

 

Item 3. Defaults Upon Senior Securities

 

39

 

 

 

Item 4. Mine Safety Disclosures

 

39

 

 

 

Item 5. Other Information

 

39

 

 

 

Item 6. Exhibits

 

40

 

 

 

SIGNATURES

 

41

 

 

2


 

PART I—CONSOLIDATED FINANCIAL INFORMATION

 

We are filing this Quarterly Report on Form 10-Q, or the Report, in compliance with Rule 13a-13 as promulgated by the Securities and Exchange Commission, or the SEC, under the Securities Exchange Act of 1934, as amended, or the Exchange Act. In this Report, except where context suggest otherwise, the terms “Company,” “we,” “our” or “us” refer to PennantPark Investment Corporation and its consolidated subsidiaries; “PennantPark Investment” refers to only PennantPark Investment Corporation; our “SBIC Fund” refers collectively to our consolidated subsidiaries, PennantPark SBIC II LP, or “SBIC II”, and its general partner, PennantPark SBIC GP II, LLC; “Funding I” refers to PennantPark Investment Funding I, LLC; “Taxable Subsidiaries” refers to PNNT Cascade Environmental Holdings, LLC, PNNT CI (Galls) Prime Investment Holdings, LLC, PNNT ecoserve, LLC, PNNT Investment Holdings, LLC and PNNT New Gulf Resources, LLC; “PennantPark Investment Advisers” or “Investment Adviser” refer to PennantPark Investment Advisers, LLC; “PennantPark Investment Administration” or “Administrator” refer to PennantPark Investment Administration, LLC; “SBA” refers to the Small Business Administration; “SBIC” refers to a small business investment company under the Small Business Investment Act of 1958, as amended, or the “1958 Act”; “BNP Credit Facility” refers to our revolving credit facility with BNP Paribas; “Truist Credit Facility” refers to our multi-currency, senior secured revolving credit facility with Truist Bank (formerly SunTrust Bank), as amended and restated; “Credit Facilities” refers to the BNP Credit Facility and the Truist Credit Facility collectively; “2019 Notes” refers to our 4.5% notes due 2019, which we redeemed in March 2019; “2024 Notes” refers to our 5.5% Notes due 2024; “BDC” refers to a business development company under the Investment Company Act of 1940, as amended, or the “1940 Act”; “SBCAA” refers to the Small Business Credit Availability Act; “Code” refers to the Internal Revenue Code of 1986, as amended; and “RIC” refers to a regulated investment company under the Code. References to our portfolio, our investments and our business include investments we make through SBIC II and our other consolidated subsidiaries.

 

 

3


 

Item 1.

Consolidated Financial Statements

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

 

 

June 30, 2020

 

 

September 30, 2019

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost—$1,084,872,788 and $922,304,099, respectively)

 

$

1,086,891,447

 

 

$

936,632,099

 

Non-controlled, affiliated investments (cost—$77,628,920 and $77,600,816, respectively)

 

 

33,132,158

 

 

 

49,349,338

 

Controlled, affiliated investments (cost—$275,946,491 and $257,117,800, respectively)

 

 

213,325,256

 

 

 

233,451,359

 

Total of investments (cost—$1,438,448,199 and $1,257,022,715, respectively)

 

 

1,333,348,861

 

 

 

1,219,432,796

 

Cash and cash equivalents (cost—$51,620,212 and $59,546,438, respectively)

 

 

51,565,044

 

 

 

59,516,236

 

Interest receivable

 

 

5,230,894

 

 

 

6,226,539

 

Prepaid expenses and other assets

 

 

1,099,585

 

 

 

662,442

 

Total assets

 

 

1,391,244,384

 

 

 

1,285,838,013

 

Liabilities

 

 

 

 

 

 

 

 

Distributions payable

 

 

8,045,413

 

 

 

12,068,119

 

BNP Credit Facility payable, at fair value (cost—$245,000,000 and $171,000,000, respectively) (See Notes 5 and 10)

 

 

236,670,000

 

 

 

170,145,000

 

Truist Credit Facility payable, at fair value (cost—$417,636,000 and $301,636,000, respectively) (See Notes 5 and 10)

 

 

397,419,103

 

 

 

295,245,214

 

2024 Notes payable, net (par—$86,250,000 and $75,000,000, respectively) (See Notes 5 and 10)

 

 

83,671,185

 

 

 

72,256,607

 

SBA debentures payable, net (par—$133,500,000 and $150,000,000, respectively) (See Notes 5 and 10)

 

 

130,383,825

 

 

 

146,111,055

 

Base management fee payable, net (See Note 3)

 

 

4,643,273

 

 

 

4,641,480

 

Interest payable on debt

 

 

5,666,385

 

 

 

2,895,695

 

Accrued other expenses

 

 

497,446

 

 

 

569,175

 

Total liabilities

 

 

866,996,630

 

 

 

703,932,345

 

Commitments and contingencies (See Note 11)

 

 

 

 

 

 

 

 

Net assets

 

 

 

 

 

 

 

 

Common stock, 67,045,105 and 67,045,105 shares issued and outstanding, respectively

   Par value $0.001 per share and 100,000,000 shares authorized

 

 

67,045

 

 

 

67,045

 

Paid-in capital in excess of par value

 

 

788,192,159

 

 

 

788,192,159

 

Distributable income

 

 

(264,011,450

)

 

 

(206,353,536

)

Total net assets

 

$

524,247,754

 

 

$

581,905,668

 

Total liabilities and net assets

 

$

1,391,244,384

 

 

$

1,285,838,013

 

Net asset value per share

 

$

7.82

 

 

$

8.68

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

4


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

20,118,883

 

 

$

19,928,284

 

 

$

63,252,326

 

 

$

66,484,378

 

Payment-in-kind

 

 

2,099,536

 

 

 

1,987,294

 

 

 

5,962,936

 

 

 

4,625,804

 

Other income

 

 

1,165,825

 

 

 

530,923

 

 

 

2,107,027

 

 

 

1,992,875

 

From controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

588,818

 

 

 

3,435,510

 

 

 

1,793,442

 

 

 

7,272,766

 

Payment-in-kind

 

 

1,434,567

 

 

 

1,454,009

 

 

 

5,830,555

 

 

 

2,855,450

 

Other income

 

 

 

 

 

776,944

 

 

 

 

 

 

949,445

 

Total investment income

 

 

25,407,629

 

 

 

28,112,964

 

 

 

78,946,286

 

 

 

84,180,718

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base management fee (See Note 3)

 

 

4,643,273

 

 

 

4,653,657

 

 

 

14,266,402

 

 

 

13,583,748

 

Performance-based incentive fee (See Note 3)

 

 

1,921,984

 

 

 

2,471,085

 

 

 

4,579,657

 

 

 

5,146,696

 

Interest and expenses on debt (See Note 10)

 

 

8,316,571

 

 

 

7,808,175

 

 

 

26,145,154

 

 

 

21,119,041

 

Administrative services expenses (See Note 3)

 

 

521,520

 

 

 

538,125

 

 

 

1,564,560

 

 

 

1,592,375

 

Other general and administrative expenses

 

 

643,480

 

 

 

692,178

 

 

 

1,936,322

 

 

 

2,002,723

 

Expenses before performance-based incentive fees waiver, financing costs and provision for taxes

 

 

16,046,828

 

 

 

16,163,220

 

 

 

48,492,095

 

 

 

43,444,583

 

Performance-based incentive fee waiver (See Note 3)

 

 

(1,921,984

)

 

 

 

 

 

(1,921,984

)

 

 

 

Debt issuance costs (See Notes 5 and 10)

 

 

 

 

 

 

 

 

 

 

 

2,696,498

 

Make-whole premium (See Notes 5 and 10)

 

 

 

 

 

 

 

 

 

 

 

2,162,526

 

Provision for taxes

 

 

300,000

 

 

 

300,000

 

 

 

900,000

 

 

 

900,000

 

Net expenses

 

 

14,424,844

 

 

 

16,463,220

 

 

 

47,470,111

 

 

 

49,203,607

 

Net investment income

 

 

10,982,785

 

 

 

11,649,744

 

 

 

31,476,175

 

 

 

34,977,111

 

Realized and unrealized gain (loss) on investments and debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized loss on investments on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(109,739

)

 

 

(43,486,868

)

 

 

(10,719,114

)

 

 

(33,757,334

)

Non-controlled and controlled, affiliated investments

 

 

 

 

 

(56,148,032

)

 

 

 

 

 

(56,375,131

)

Net realized loss on investments

 

 

(109,739

)

 

 

(99,634,900

)

 

 

(10,719,114

)

 

 

(90,132,465

)

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

11,319,274

 

 

 

36,381,944

 

 

 

(12,334,358

)

 

 

7,535,406

 

Non-controlled and controlled, affiliated investments

 

 

18,495,283

 

 

 

57,045,559

 

 

 

(55,200,078

)

 

 

45,366,352

 

Debt (appreciation) depreciation (See Notes 5 and 10)

 

 

(25,073,673

)

 

 

186,504

 

 

 

21,301,111

 

 

 

9,914,139

 

Net change in unrealized appreciation (depreciation) on investments and debt

 

 

4,740,884

 

 

 

93,614,007

 

 

 

(46,233,325

)

 

 

62,815,897

 

Net realized and unrealized gain (loss) from investments and debt

 

 

4,631,145

 

 

 

(6,020,893

)

 

 

(56,952,439

)

 

 

(27,316,568

)

Net increase (decrease) in net assets resulting from operations

 

$

15,613,930

 

 

$

5,628,851

 

 

$

(25,476,264

)

 

$

7,660,543

 

Net increase (decrease) in net assets resulting from operations per common share (See Note 7)

 

$

0.23

 

 

$

0.08

 

 

$

(0.38

)

 

$

0.11

 

Net investment income per common share

 

$

0.16

 

 

$

0.17

 

 

$

0.47

 

 

$

0.51

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

5


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

10,982,785

 

 

$

11,649,744

 

 

$

31,476,175

 

 

$

34,977,111

 

Net realized loss on investments

 

 

(109,739

)

 

 

(99,634,900

)

 

 

(10,719,114

)

 

 

(90,132,465

)

Net change in unrealized appreciation (depreciation) on investments

 

 

29,814,557

 

 

 

93,427,503

 

 

 

(67,534,436

)

 

 

52,901,758

 

Net change in unrealized (appreciation) depreciation on debt

 

 

(25,073,673

)

 

 

186,504

 

 

 

21,301,111

 

 

 

9,914,139

 

Net increase (decrease) in net assets resulting from operations

 

 

15,613,930

 

 

 

5,628,851

 

 

 

(25,476,264

)

 

 

7,660,543

 

Distributions to stockholders

 

 

(8,045,413

)

 

 

(12,068,118

)

 

 

(32,181,650

)

 

 

(36,381,194

)

Capital transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

 

 

 

 

 

 

 

 

 

(14,471,720

)

Net increase (decrease) in net assets

 

 

7,568,517

 

 

 

(6,439,267

)

 

 

(57,657,914

)

 

 

(43,192,371

)

Net assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

516,679,237

 

 

 

592,148,791

 

 

 

581,905,668

 

 

 

628,901,895

 

End of period

 

$

524,247,754

 

 

$

585,709,524

 

 

$

524,247,754

 

 

$

585,709,524

 

Capital share activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares of common stock repurchased

 

 

 

 

 

 

 

 

 

 

 

(2,008,853

)

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

6


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended June 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net (decrease) increase in net assets resulting from operations

 

$

(25,476,264

)

 

$

7,660,543

 

Adjustments to reconcile net (decrease) increase in net assets resulting from

   operations to net cash used in operating activities:

 

 

 

 

 

 

 

 

Net change in net unrealized depreciation (appreciation) on investments

 

 

67,534,436

 

 

 

(52,901,758

)

Net change in unrealized depreciation on debt

 

 

(21,301,111

)

 

 

(9,914,139

)

Net realized loss on investments

 

 

10,719,114

 

 

 

90,132,465

 

Net accretion of discount and amortization of premium

 

 

(2,184,545

)

 

 

(2,095,442

)

Purchases of investments

 

 

(292,216,763

)

 

 

(494,793,457

)

Payment-in-kind income

 

 

(11,825,750

)

 

 

(8,765,915

)

Proceeds from dispositions of investments

 

 

114,085,199

 

 

 

325,598,567

 

Amortization of deferred financing costs

 

 

1,302,122

 

 

 

628,761

 

Decrease in interest receivable

 

 

995,645

 

 

 

387,222

 

(Increase) decrease in prepaid expenses and other assets

 

 

(437,143

)

 

 

546,453

 

Increase (decrease) in interest payable on debt

 

 

2,770,690

 

 

 

(2,568,650

)

Increase in base management fee payable, net

 

 

1,793

 

 

 

566,826

 

Decrease in performance-based incentive fee payable, net

 

 

 

 

 

(493,179

)

Decrease in accrued other expenses

 

 

(71,729

)

 

 

(726,208

)

Net cash used in operating activities

 

 

(156,104,306

)

 

 

(146,737,911

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

 

 

 

(14,471,720

)

Distributions paid to stockholders

 

 

(36,204,356

)

 

 

(36,742,787

)

Proceeds from 2024 Notes issuance

 

 

10,912,500

 

 

 

 

Repayments of 2019 Notes

 

 

 

 

 

(250,000,000

)

Repayments under SBA debentures

 

 

(16,500,000

)

 

 

(30,000,000

)

Borrowings under BNP Credit Facility

 

 

90,000,000

 

 

 

178,000,000

 

Repayments under BNP Credit Facility

 

 

(16,000,000

)

 

 

 

Borrowings under Truist Credit Facility

 

 

304,000,000

 

 

 

655,000,000

 

Repayments under Truist Credit Facility

 

 

(188,000,000

)

 

 

(352,884,000

)

Net cash provided by financing activities

 

 

148,208,144

 

 

 

148,901,493

 

Net (decrease) increase in cash equivalents

 

 

(7,896,162

)

 

 

2,163,582

 

Effect of exchange rate changes on cash

 

 

(55,030

)

 

 

75,100

 

Cash and cash equivalents, beginning of period

 

 

59,516,236

 

 

 

19,506,154

 

Cash and cash equivalents, end of period

 

$

51,565,044

 

 

$

21,744,836

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

22,072,342

 

 

$

23,058,930

 

Taxes paid

 

$

805,976

 

 

$

1,111,409

 

Non-cash exchanges and conversions

 

$

91,204,799

 

 

$

14,823,909

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

JUNE 30, 2020 (Unaudited)

Issuer Name

 

Maturity /

Expiration

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread Above

Index (4)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (3)

 

Investments in Non-Controlled, Non-Affiliated Portfolio Companies—207.3 (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—144.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18 Freemont Street Acquisition, LLC

 

08/11/2025

 

Hotels, Motels, Inns and Gaming

 

 

9.50

%

 

1M L+800

 

 

 

8,302,303

 

 

$

7,516,285

 

 

$

7,804,165

 

Advantage Sales & Marketing (5)

 

07/23/2021

 

Grocery

 

 

4.25

%

 

1M L+325

 

 

 

8,650,037

 

 

 

8,377,645

 

 

 

7,875,859

 

Altamira Technologies, LLC (5)

 

07/24/2025

 

Aerospace and Defense

 

 

7.00

%

 

3M L+600

 

 

 

977,481

 

 

 

964,530

 

 

 

933,494

 

Altamira Technologies, LLC (Revolver)

 

07/24/2025

 

Aerospace and Defense

 

 

7.00

%

 

3M L+600

 

 

 

125,000

 

 

 

125,000

 

 

 

119,375

 

Altamira Technologies, LLC (Revolver) (7)

 

07/24/2025

 

Aerospace and Defense

 

 

 

 

 

 

 

 

62,500

 

 

 

 

 

 

(2,813

)

American Insulated Glass, LLC (5)

 

12/21/2023

 

Building Materials

 

 

6.87

%

 

3M L+550

 

 

 

30,810,145

 

 

 

30,355,939

 

 

 

29,577,739

 

Apex Service Partners, LLC (5)

 

07/31/2025

 

Personal, Food and Miscellaneous Services

 

 

6.25

%

 

1M L+525

 

 

 

6,623,051

 

 

 

6,561,925

 

 

 

6,440,918

 

Apex Service Partners, LLC (7)

 

07/31/2021

 

Personal, Food and Miscellaneous Services

 

 

 

 

 

 

 

 

1,344,715

 

 

 

 

 

 

(36,980

)

Bazaarvoice, Inc. (5)

 

02/01/2024

 

Printing and Publishing

 

 

6.82

%

 

1M L+575

 

 

 

14,665,025

 

 

 

14,539,287

 

 

 

14,298,399

 

Bottom Line Systems, LLC (5)

 

02/13/2023

 

Healthcare, Education and Childcare

 

 

6.57

%

 

1M L+550

 

 

 

21,722,525

 

 

 

21,553,613

 

 

 

21,086,055

 

Broder Bros., Co.

 

12/02/2022

 

Consumer Products

 

 

9.77

%

 

3M L+850

 

 

 

26,051,088

 

 

 

26,051,088

 

 

 

23,602,286

 

Cano Health, LLC (5)

 

12/23/2021

 

Healthcare, Education and Childcare

 

 

8.00

%

 

1M L+700

 

 

 

20,868,858

 

 

 

20,732,898

 

 

 

20,868,858

 

Compex Legal Services, Inc.

 

02/09/2026

 

Business Services

 

 

7.34

%

 

3M L+575

 

 

 

3,614,954

 

 

 

3,546,227

 

 

 

3,448,666

 

Compex Legal Services, Inc. (7)

 

02/08/2021

 

Business Services

 

 

 

 

 

 

 

 

1,549,743

 

 

 

 

 

 

(55,791

)

Compex Legal Services, Inc. (Revolver)

 

02/07/2025

 

Business Services

 

 

6.82

%

 

3M L+575

 

 

 

655,660

 

 

 

655,660

 

 

 

625,500

 

Datalot Inc. (5)

 

01/24/2025

 

Insurance

 

 

6.27

%

 

3M L+525

 

 

 

7,134,777

 

 

 

7,003,421

 

 

 

7,029,895

 

Datalot Inc. (Revolver)

 

01/24/2025

 

Insurance

 

 

6.25

%

 

3M L+525

 

 

 

1,788,165

 

 

 

1,788,165

 

 

 

1,761,879

 

DermaRite Industries LLC

 

03/03/2022

 

Manufacturing / Basic Industries

 

 

8.07

%

 

1M L+700

 

 

 

8,975,884

 

 

 

8,916,184

 

 

 

8,953,445

 

DRS Holdings III, Inc. (5)

 

11/03/2025

 

Consumer Products

 

 

6.75

%

 

1M L+575

 

 

 

13,598,894

 

 

 

13,476,105

 

 

 

13,292,918

 

DRS Holdings III, Inc. (Revolver)

 

11/03/2025

 

Consumer Products

 

 

6.75

%

 

1M L+575

 

 

 

611,241

 

 

 

611,241

 

 

 

597,488

 

DRS Holdings III, Inc. (Revolver) (7)

 

11/03/2025

 

Consumer Products

 

 

 

 

 

 

 

 

916,861

 

 

 

 

 

 

(20,629

)

ECM Industries, LLC (5)

 

12/23/2025

 

Electronics

 

 

5.50

%

 

1M L+450

 

 

 

2,880,406

 

 

 

2,852,125

 

 

 

2,837,200

 

ECM Industries, LLC (Revolver)

 

12/23/2025

 

Electronics

 

 

5.50

%

 

1M L+450

 

 

 

517,594

 

 

 

517,594

 

 

 

505,585

 

Holdco Sands Intermediate, LLC (5)

 

12/19/2025

 

Aerospace and Defense

 

 

7.50

%

 

3M L+600

 

 

 

12,224,286

 

 

 

12,052,930

 

 

 

11,796,436

 

HW Holdco, LLC (5)

 

12/10/2024

 

Media

 

 

5.50

%

 

3M L+450

 

 

 

17,348,710

 

 

 

17,204,994

 

 

 

16,828,249

 

HW Holdco, LLC (Revolver) (7)

 

12/10/2024

 

Media

 

 

 

 

 

 

 

 

3,387,097

 

 

 

 

 

 

(101,613

)

Impact Group, LLC (5)

 

06/27/2023

 

Personal, Food and Miscellaneous Services

 

 

8.59

%

 

1M L+737

 

 

 

19,941,835

 

 

 

19,858,253

 

 

 

19,742,417

 

Integrity Marketing Acquisition, LLC

 

08/27/2025

 

Insurance

 

 

7.01

%

 

3M L+575

 

 

 

6,404,198

 

 

 

6,358,526

 

 

 

6,212,072

 

Integrity Marketing Acquisition, LLC (7)

 

08/27/2025

 

Insurance

 

 

 

 

 

 

 

 

18,270,943

 

 

 

 

 

 

(411,097

)

Juniper Landscaping of Florida, LLC

 

12/22/2021

 

Personal, Food and Miscellaneous Services

 

 

9.50

%

 

1M L+850

 

 

 

13,886,584

 

 

 

13,780,414

 

 

 

13,886,584

 

K2 Pure Solutions NoCal, L.P. (5)

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

1M L+700

 

 

 

26,726,333

 

 

 

26,429,617

 

 

 

26,124,990

 

K2 Pure Solutions NoCal, L.P. (Revolver)

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

1M L+700

 

 

 

1,453,571

 

 

 

1,453,571

 

 

 

1,420,866

 

K2 Pure Solutions NoCal, L.P. (Revolver) (7)

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

484,524

 

 

 

 

 

 

(10,902

)

Kentucky Downs, LLC (5)

 

03/07/2025

 

Hotels, Motels, Inns and Gaming

 

 

10.00

%

 

1M L+900

 

 

 

10,127,188

 

 

 

9,946,794

 

 

 

9,924,644