pnnt-10q_20170331.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 MARCH 31, 2017

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)

  

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).    Yes       No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 Exchange Act).    Yes      No  

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of May 8, 2017 was 71,060,836.

 

 


 

PENNANTPARK INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2017

TABLE OF CONTENTS

 

 

 

 

 

PART I. CONSOLIDATED FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Consolidated Financial Statements

 

 

 

 

 

Consolidated Statements of Assets and Liabilities as of March 31, 2017 (unaudited) and September 30, 2016

 

4

 

 

 

Consolidated Statements of Operations for the three and six months ended March 31, 2017 and 2016 (unaudited)

 

5

 

 

 

Consolidated Statements of Changes in Net Assets for the six months ended March 31, 2017 and 2016 (unaudited)

 

6

 

 

 

Consolidated Statements of Cash Flows for the six months ended March 31, 2017 and 2016 (unaudited)

 

7

 

 

 

Consolidated Schedules of Investments as of March 31, 2017 (unaudited) and September 30, 2016

 

8

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

14

 

 

 

Report of Independent Registered Public Accounting Firm

 

24

 

 

 

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

 

25

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

33

 

 

 

Item 4. Controls and Procedures

 

33

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

Item 1. Legal Proceedings

 

34

 

 

 

Item 1A. Risk Factors

 

34

 

 

 

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

 

34

 

 

 

Item 3. Defaults Upon Senior Securities

 

34

 

 

 

Item 4. Mine Safety Disclosures

 

34

 

 

 

Item 5. Other Information

 

34

 

 

 

Item 6. Exhibits

 

35

 

 

 

SIGNATURES

 

36

 

 

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 promulgated by the Securities and Exchange Commission, or the SEC. In this Report, “Company,” “we,” “our” or “us” refer to PennantPark Investment Corporation and its consolidated subsidiaries unless the context suggests otherwise. “PennantPark Investment” refers to only PennantPark Investment Corporation; “our SBIC Funds” refers collectively to our consolidated subsidiaries, PennantPark SBIC LP, or SBIC I, and its general partner, PennantPark SBIC GP, LLC, and PennantPark SBIC II LP, or SBIC II, and its general partner, PennantPark SBIC GP II, 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” refers to PennantPark Investment Advisers, LLC; “PennantPark Investment Administration” or “Administrator” refers 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”; “Credit Facility” refers to our multi-currency, senior secured revolving credit facility, as amended and restated; “2025 Notes” refers to our 6.25% notes due 2025; “2019 Notes” refers to our 4.50% notes due 2019; “our Notes” refers, collectively, to our 2025 Notes and our 2019 Notes; “BDC” refers to a business development company under the Investment Company Act of 1940, as amended, or the “1940 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 or investments include investments we make through our SBIC Funds and other consolidated subsidiaries.

 

 

 

 

3


 

Item 1.Consolidated Financial Statements

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

 

 

 

March 31, 2017

 

 

September 30, 2016

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost—$806,381,197 and $805,189,545, respectively)

 

$

827,414,297

 

 

$

813,467,491

 

Non-controlled, affiliated investments (cost—$247,342,695 and $262,476,906, respectively)

 

 

242,689,039

 

 

 

215,192,547

 

Controlled, affiliated investments (cost—$195,523,633 and $186,290,695, respectively)

 

 

124,376,311

 

 

 

125,019,637

 

Total of investments (cost—$1,249,247,525 and $1,253,957,146, respectively)

 

 

1,194,479,647

 

 

 

1,153,679,675

 

Cash and cash equivalents (cost—$66,560,479 and $75,617,133, respectively)

 

 

66,565,207

 

 

 

75,608,113

 

Interest receivable

 

 

10,167,252

 

 

 

7,032,858

 

Receivable for investments sold

 

 

12,086,044

 

 

 

 

Prepaid expenses and other assets

 

 

2,275,115

 

 

 

2,615,232

 

Total assets

 

 

1,285,573,265

 

 

 

1,238,935,878

 

Liabilities

 

 

 

 

 

 

 

 

Distributions payable

 

 

12,790,950

 

 

 

19,897,034

 

Credit Facility payable (cost—$99,586,300 and $50,339,700, respectively) (See Notes 5 and 10)

 

 

88,491,651

 

 

 

39,551,187

 

2019 Notes payable (par—$250,000,000) (See Notes 5 and 10)

 

 

255,137,500

 

 

 

254,175,000

 

SBA debentures payable, net (par—$197,500,000) (See Notes 5 and 10)

 

 

193,579,200

 

 

 

193,244,534

 

2025 Notes payable (par—$71,250,000) (See Notes 5 and 10)

 

 

72,247,500

 

 

 

72,618,000

 

Base management fee payable, net (See Note 3)

 

 

5,319,305

 

 

 

5,074,830

 

Performance-based incentive fee payable, net (See Note 3)

 

 

3,060,280

 

 

 

2,865,444

 

Interest payable on debt

 

 

7,649,300

 

 

 

7,520,113

 

Accrued other expenses

 

 

1,109,912

 

 

 

622,880

 

Total liabilities

 

 

639,385,598

 

 

 

595,569,022

 

Commitments and contingencies (See Note 11)

 

 

 

 

 

 

 

 

Net assets

 

 

 

 

 

 

 

 

Common stock, 71,060,836 shares issued and outstanding, respectively

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

 

 

71,061

 

 

 

71,061

 

Paid-in capital in excess of par value

 

 

819,983,676

 

 

 

819,983,676

 

Undistributed net investment income

 

 

1,640,939

 

 

 

3,119,380

 

Accumulated net realized loss on investments

 

 

(125,709,891

)

 

 

(84,771,820

)

Net unrealized depreciation on investments

 

 

(54,757,767

)

 

 

(100,280,954

)

Net unrealized depreciation on debt

 

 

4,959,649

 

 

 

5,245,513

 

Total net assets

 

$

646,187,667

 

 

$

643,366,856

 

Total liabilities and net assets

 

$

1,285,573,265

 

 

$

1,238,935,878

 

Net asset value per share

 

$

9.09

 

 

$

9.05

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

4


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

Three Months Ended March 31,

 

 

Six Months Ended March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

24,090,316

 

 

$

26,649,790

 

 

$

45,962,445

 

 

$

54,867,820

 

Other income

 

 

1,565,617

 

 

 

5,860,016

 

 

 

3,668,153

 

 

 

7,527,669

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

4,440,386

 

 

 

3,337,000

 

 

 

8,666,067

 

 

 

5,517,576

 

Other income

 

 

 

 

 

 

 

 

22,500

 

 

 

 

From controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

3,618,674

 

 

 

3,261,619

 

 

 

7,264,738

 

 

 

6,458,652

 

Total investment income

 

 

33,714,993

 

 

 

39,108,425

 

 

 

65,583,903

 

 

 

74,371,717

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base management fee (See Note 3)

 

 

6,332,507

 

 

 

6,115,075

 

 

 

12,607,289

 

 

 

12,620,855

 

Performance-based incentive fee (See Note 3)

 

 

3,643,189

 

 

 

4,772,473

 

 

 

7,017,399

 

 

 

8,568,255

 

Interest and expenses on debt (See Note 10)

 

 

7,179,057

 

 

 

6,942,925

 

 

 

13,914,631

 

 

 

13,669,250

 

Administrative services expenses (See Note 3)

 

 

894,000

 

 

 

900,500

 

 

 

1,788,000

 

 

 

1,768,000

 

Other general and administrative expenses

 

 

668,483

 

 

 

937,563

 

 

 

1,336,990

 

 

 

1,822,192

 

Expenses before Management Fees waiver and provision for taxes

 

 

18,717,236

 

 

 

19,668,536

 

 

 

36,664,309

 

 

 

38,448,552

 

Management Fees waiver (See Note 3)

 

 

(1,596,111

)

 

 

(1,742,008

)

 

 

(3,139,950

)

 

 

(3,390,262

)

Provision for taxes

 

 

425,000

 

 

 

350,000

 

 

 

850,000

 

 

 

1,650,000

 

Net expenses

 

 

17,546,125

 

 

 

18,276,528

 

 

 

34,374,359

 

 

 

36,708,290

 

Net investment income

 

 

16,168,868

 

 

 

20,831,897

 

 

 

31,209,544

 

 

 

37,663,427

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized loss on investments

 

 

(18,742,737

)

 

 

(11,210,018

)

 

 

(40,938,071

)

 

 

(36,584,981

)

Net change in unrealized (depreciation) appreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(6,279,870

)

 

 

(6,211,252

)

 

 

13,356,331

 

 

 

(22,954,067

)

Non-controlled and controlled, affiliated investments

 

 

26,429,957

 

 

 

(9,775,018

)

 

 

32,166,856

 

 

 

(32,904,728

)

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

 

 

(6,116,548

)

 

 

10,314,028

 

 

 

(285,864

)

 

 

17,974,803

 

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

 

 

14,033,539

 

 

 

(5,672,242

)

 

 

45,237,323

 

 

 

(37,883,992

)

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

 

 

(4,709,198

)

 

 

(16,882,260

)

 

 

4,299,252

 

 

 

(74,468,973

)

Net increase (decrease) in net assets resulting from operations

 

$

11,459,670

 

 

$

3,949,637

 

 

$

35,508,796

 

 

$

(36,805,546

)

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

 

$

0.16

 

 

$

0.06

 

 

$

0.50

 

 

$

(0.51

)

Net investment income per common share

 

$

0.23

 

 

$

0.29

 

 

$

0.44

 

 

$

0.52

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

5


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

 

 

 

 

Six Months Ended March 31,

 

 

 

2017

 

 

2016

 

Net increase (decrease) in net assets from operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

31,209,544

 

 

$

37,663,427

 

Net realized loss on investments

 

 

(40,938,071

)

 

 

(36,584,981

)

Net change in unrealized appreciation (depreciation) on investments

 

 

45,523,187

 

 

 

(55,858,795

)

Net change in unrealized (appreciation) depreciation on debt

 

 

(285,864

)

 

 

17,974,803

 

Net increase (decrease) in net assets resulting from operations

 

 

35,508,796

 

 

 

(36,805,546

)

Distributions to stockholders:

 

 

(32,687,985

)

 

 

(39,985,833

)

Capital transactions:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

 

 

 

(12,180,491

)

Net increase (decrease) in net assets

 

 

2,820,811

 

 

 

(88,971,870

)

Net assets:

 

 

 

 

 

 

 

 

Beginning of period

 

 

643,366,856

 

 

 

716,590,542

 

End of period

 

$

646,187,667

 

 

$

627,618,672

 

Undistributed (distributions in excess of) net investment income, at end of period

 

$

1,640,939

 

 

$

(15,747,292

)

Capital share activity:

 

 

 

 

 

 

 

 

Shares of common stock repurchased

 

 

 

 

 

(1,905,207

)

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

6


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

Six Months Ended March 31,

 

 

 

2017

 

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

35,508,796

 

 

$

(36,805,546

)

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

   operations to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Net change in net unrealized (appreciation) depreciation on investments

 

 

(45,523,187

)

 

 

55,858,795

 

Net change in unrealized appreciation (depreciation) on debt

 

 

285,864

 

 

 

(17,974,803

)

Net realized loss on investments

 

 

40,938,071

 

 

 

36,584,981

 

Net accretion of discount and amortization of premium

 

 

(1,791,876

)

 

 

(2,897,809

)

Purchases of investments

 

 

(289,692,765

)

 

 

(216,808,143

)

Payment-in-kind income

 

 

(11,287,854

)

 

 

(6,151,360

)

Proceeds from dispositions of investments

 

 

266,232,636

 

 

 

200,963,008

 

Amortization of deferred financing costs

 

 

334,666

 

 

 

293,819

 

(Increase) decrease in interest receivable

 

 

(3,134,394

)

 

 

182,936

 

Increase in receivable for investments sold

 

 

(12,086,044

)

 

 

 

Decrease in prepaid expenses and other assets

 

 

340,117

 

 

 

4,965,110

 

Decrease in payable for investments purchased

 

 

 

 

 

(3,591,177

)

Increase in interest payable on debt

 

 

129,187

 

 

 

22,614

 

Increase (decrease) in base management fee payable, net

 

 

244,475

 

 

 

(1,465,365

)

Increase (decrease) in performance-based incentive fee payable, net

 

 

194,836

 

 

 

(998,916

)

Increase (decrease) in accrued other expenses

 

 

487,032

 

 

 

(2,322,367

)

Net cash (used in) provided by operating activities

 

 

(18,820,440

)

 

 

9,855,777

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

 

 

 

(12,180,491

)

Distributions paid to stockholders

 

 

(39,794,068

)

 

 

(40,519,291

)

Borrowings under SBA debentures

 

 

 

 

 

22,500,000

 

Capitalized borrowing costs

 

 

 

 

 

(545,625

)

Borrowings under Credit Facility

 

 

345,760,000

 

 

 

276,164,923

 

Repayments under Credit Facility

 

 

(296,513,400

)

 

 

(271,699,400

)

Net cash provided by (used in) financing activities

 

 

9,452,532

 

 

 

(26,279,884

)

Net decrease in cash equivalents

 

 

(9,367,908

)

 

 

(16,424,107

)

Effect of exchange rate changes on cash

 

 

325,002

 

 

 

(20

)

Cash and cash equivalents, beginning of period

 

 

75,608,113

 

 

 

49,619,256

 

Cash and cash equivalents, end of period

 

$

66,565,207

 

 

$

33,195,129

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

13,450,777

 

 

$

13,352,817

 

Taxes paid

 

$

102,458

 

 

$

2,157,017

 

Non-cash exchanges and conversions

 

$

25,049,756

 

 

$

39,438,420

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

MARCH 31, 2017

(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—128.1% (1), (2)

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—49.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bottom Line Systems, LLC

 

02/13/2023

 

 

Healthcare, Education and Childcare

 

 

8.51

%

 

L+750

 

 

 

19,950,000

 

 

$

19,658,923

 

 

$

19,776,358

 

Broder Bros., Co., Tranche A

 

06/03/2021

 

 

Consumer Products

 

 

7.00

%

 

L+575

 

 

 

9,037,500

 

 

 

8,894,361

 

 

 

9,037,500

 

Broder Bros., Co., Tranche B

 

06/03/2021

 

 

Consumer Products

 

 

13.50

%

 

L+1,225

 

 

 

9,150,000

 

 

 

8,999,849

 

 

 

9,150,000

 

DermaRite Industries LLC

 

03/03/2022

 

 

Manufacturing / Basic Industries

 

 

8.02

%

 

L+700

 

 

 

10,000,000

 

 

 

9,851,491

 

 

 

9,854,227

 

Hollander Sleep Products, LLC

 

10/21/2020

 

 

Consumer Products

 

 

9.00

%

 

L+800

 

 

 

4,372,074

 

 

 

4,329,154

 

 

 

4,328,353

 

Interior Specialists, Inc.

 

06/30/2020

 

 

Building Materials

 

 

9.00

%

 

L+800

 

 

 

24,727,793

 

 

 

24,555,615

 

 

 

24,975,071

 

Juniper Landscaping of Florida, LLC

 

12/22/2021

 

 

Personal, Food and Miscellaneous Services

 

 

10.50

%

 

L+950

 

 

 

14,264,438

 

 

 

13,990,995

 

 

 

14,264,438

 

Juniper Landscaping of Florida, LLC (Revolver)

 

12/22/2021

 

 

Personal, Food and Miscellaneous Services

 

 

10.50

%

 

L+950

 

 

 

180,000

 

 

 

180,000

 

 

 

180,000

 

Juniper Landscaping of Florida, LLC (Revolver) (8)

 

12/22/2021

 

 

Personal, Food and Miscellaneous Services

 

 

 

 

 

 

 

 

3,420,000

 

 

 

 

 

 

 

K2 Pure Solutions NoCal, L.P.

 

02/19/2021

 

 

Chemicals, Plastics and Rubber

 

 

10.00

%

 

L+900

 

 

 

14,522,529

 

 

 

14,281,764

 

 

 

14,327,892

 

LSF9 Atlantis Holdings, LLC

 

01/15/2021

 

 

Retail

 

 

10.02

%

 

L+900

 

 

 

37,406,659

 

 

 

36,967,307

 

 

 

38,154,793

 

One Sixty Over Ninety, LLC

 

03/03/2022

 

 

Media

 

 

10.22

%

 

L+922

 

 

 

16,250,000

 

 

 

15,927,812

 

 

 

15,925,000

 

Prince Mineral Holding Corp. (5)

 

12/16/2019

 

 

Mining, Steel, Iron and Non-Precious Metals

 

 

11.50

%

 

 

 

 

 

14,250,000

 

 

 

14,170,818

 

 

 

14,463,750

 

Robertshaw US Holding Corp.

 

06/18/2019

 

 

Electronics

 

 

8.50

%

 

L+700

 

 

 

15,884,843

 

 

 

15,825,004

 

 

 

15,829,611

 

Sotera Defense Solutions, Inc.

 

04/21/2017

 

 

Aerospace and Defense

 

 

9.00

%

 

L+750

 

 

 

37,929,343

 

 

 

37,890,912

 

 

 

37,360,403

 

Sunborn Oy, Sunborn Saga Oy (9), (11), (12)

 

06/28/2019

 

 

Hotels, Motels, Inns and Gaming

 

 

11.50

%

 

L+1,050

 

 

29,623,798

 

 

 

30,551,086

 

 

 

31,684,222

 

 

 

 

 

 

 

 

 

 

(PIK 3.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triad Manufacturing, Inc.

 

12/28/2020

 

 

Manufacturing / Basic Industries

 

 

12.23

%

 

L+1,125

 

 

 

26,186,907

 

 

 

25,770,090

 

 

 

26,186,907

 

Trust Inns Limited (9), (11), (12)

 

02/12/2020

 

 

Buildings and Real Estate

 

 

10.84

%

 

L+1,050

 

(7)

£

21,520,472

 

 

 

34,514,100

 

 

 

26,955,991

 

US Med Acquisition, Inc.

 

08/13/2021

 

 

Healthcare, Education and Childcare

 

 

10.15

%

 

L+900

 

 

 

8,607,813

 

 

 

8,607,813

 

 

 

8,521,734

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324,967,094

 

 

 

320,976,250

 

Second Lien Secured Debt—55.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acre Operating Company, LLC

 

12/12/2023

 

 

Electronics

 

 

10.50

%

 

L+950

 

 

 

38,800,000

 

 

 

38,137,869

 

 

 

38,800,000

 

Balboa Capital Corporation (12)

 

03/04/2022

 

 

Financial Services

 

 

13.75

%

 

 

 

 

 

28,500,000

 

 

 

28,271,082

 

 

 

28,500,000

 

Harbortouch Payments, LLC

 

10/11/2024

 

 

Financial Services

 

 

10.50

%

 

L+950

 

 

 

17,500,000

 

 

 

17,163,491

 

 

 

17,237,500

 

Howard Berger Co. LLC

 

09/30/2020

 

 

Distribution

 

 

11.15

%

 

L+1,000

 

 

 

41,812,500

 

 

 

40,169,970

 

 

 

38,049,375

 

 

 

 

 

 

 

 

 

 

(PIK 5.32

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intermediate Transportation 100, LLC (5)

 

06/01/2017

 

 

Cargo Transport

 

 

(6)

 

 

 

 

5,156,586

 

 

 

3,739,798

 

 

 

2,990,819

 

MailSouth, Inc.

 

10/22/2021

 

 

Printing and Publishing

 

 

11.50

%

 

L+1,050

 

 

 

26,425,000

 

 

 

25,964,846

 

 

 

26,689,250

 

Novitex Acquisition, LLC

 

07/07/2021

 

 

Business Services

 

 

12.32

%

 

L+1,100

 

 

 

44,625,000

 

 

 

44,135,394

 

 

 

45,071,250

 

Parq Holdings Limited Partnership (9), (12)

 

12/17/2021

 

 

Hotels, Motels, Inns and Gaming

 

 

13.00

%

 

L+1,200

 

 

 

75,000,000

 

 

 

75,000,000

 

 

 

77,781,101

 

Pre-Paid Legal Services, Inc.

 

07/01/2020

 

 

Personal, Food and Miscellaneous Services

 

 

10.25

%

 

L+900

 

 

 

62,750,000

 

 

 

62,261,413

 

 

 

62,854,793

 

Veritext Corp. (f/k/a VT Buyer Acquisition Corp.)

 

01/30/2023

 

 

Business Services

 

 

10.15

%

 

L+900

 

 

 

18,834,375

 

 

 

18,319,105

 

 

 

18,457,688

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

353,162,968

 

 

 

356,431,776

 

Subordinated Debt/Corporate Notes—15.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alegeus Technologies, LLC

 

02/15/2019

 

 

Financial Services

 

 

13.15

%

 

L+1,200

 

 

 

8,930,000

 

 

 

8,853,259

 

 

 

8,883,496

 

Cascade Environmental LLC

 

08/20/2021

 

 

Environmental Services

 

 

12.00

%

 

 

 

 

 

32,675,553

 

 

 

32,107,388

 

 

 

32,348,798

 

Credit Infonet, Inc.

 

10/26/2020

 

 

Personal, Food and Miscellaneous Services

 

 

13.00

%

 

 

 

 

 

11,110,315

 

 

 

10,898,315

 

 

 

11,014,693

 

 

 

 

 

 

 

 

 

 

(PIK 0.75

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goldsun Trading Limited (9), (11), (12)

 

02/19/2018

 

 

Healthcare, Education and Childcare

 

 

18.50

%

 

L+1,400