pnnt-10q_20170630.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, 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 August 7, 2017 was 71,060,836.

 

 


 

PENNANTPARK INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2017

TABLE OF CONTENTS

 

 

 

 

 

PART I. CONSOLIDATED FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Consolidated Financial Statements

 

 

 

 

 

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

 

4

 

 

 

Consolidated Statements of Operations for the three and nine months ended June 30, 2017 and 2016 (unaudited)

 

5

 

 

 

Consolidated Statements of Changes in Net Assets for the nine months ended June 30, 2017 and 2016 (unaudited)

 

6

 

 

 

Consolidated Statements of Cash Flows for the nine months ended June 30, 2017 and 2016 (unaudited)

 

7

 

 

 

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

 

8

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

14

 

 

 

Report of Independent Registered Public Accounting Firm

 

25

 

 

 

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

 

26

 

 

 

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

 

 

 

 

June 30, 2017

 

 

September 30, 2016

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost—$772,411,106 and $805,189,545, respectively)

 

$

788,252,925

 

 

$

813,467,491

 

Non-controlled, affiliated investments (cost—$183,090,652 and $262,476,906, respectively)

 

 

185,505,287

 

 

 

215,192,547

 

Controlled, affiliated investments (cost—$199,972,502 and $186,290,695, respectively)

 

 

125,166,048

 

 

 

125,019,637

 

Total of investments (cost—$1,155,474,260 and $1,253,957,146, respectively)

 

 

1,098,924,260

 

 

 

1,153,679,675

 

Cash and cash equivalents (cost—$103,099,629 and $75,617,133, respectively)

 

 

103,196,132

 

 

 

75,608,113

 

Interest receivable

 

 

7,899,440

 

 

 

7,032,858

 

Receivable for investments sold

 

 

12,478,824

 

 

 

 

Prepaid expenses and other assets

 

 

5,150,297

 

 

 

2,615,232

 

Total assets

 

 

1,227,648,953

 

 

 

1,238,935,878

 

Liabilities

 

 

 

 

 

 

 

 

Distributions payable

 

 

12,790,950

 

 

 

19,897,034

 

Credit Facility payable (cost—$82,105,300 and $50,339,700, respectively) (See Notes 5 and 10)

 

 

75,908,513

 

 

 

39,551,187

 

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

 

 

253,375,000

 

 

 

254,175,000

 

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

 

 

 

 

 

72,618,000

 

SBA debentures payable, net (par—$225,000,000 and $197,500,000, respectively) (See Notes 5 and 10)

 

 

220,590,278

 

 

 

193,244,534

 

Base management fee payable, net (See Note 3)

 

 

4,907,784

 

 

 

5,074,830

 

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

 

 

1,140,859

 

 

 

2,865,444

 

Interest payable on debt

 

 

5,962,316

 

 

 

7,520,113

 

Accrued other expenses

 

 

797,471

 

 

 

622,880

 

Total liabilities

 

 

575,473,171

 

 

 

595,569,022

 

Commitments and contingencies (See Note 11)

 

 

 

 

 

 

 

 

Net assets

 

 

 

 

 

 

 

 

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

   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

 

 

1,310,399

 

 

 

3,119,380

 

Accumulated net realized loss on investments

 

 

(115,562,130

)

 

 

(84,771,820

)

Net unrealized depreciation on investments

 

 

(56,449,011

)

 

 

(100,280,954

)

Net unrealized depreciation on debt

 

 

2,821,787

 

 

 

5,245,513

 

Total net assets

 

$

652,175,782

 

 

$

643,366,856

 

Total liabilities and net assets

 

$

1,227,648,953

 

 

$

1,238,935,878

 

Net asset value per share

 

$

9.18

 

 

$

9.05

 

 

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,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

21,366,729

 

 

$

26,432,244

 

 

$

67,329,174

 

 

$

81,300,064

 

Other income

 

 

946,587

 

 

 

2,151,427

 

 

 

4,614,740

 

 

 

9,679,096

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

3,750,616

 

 

 

3,458,232

 

 

 

12,416,683

 

 

 

8,956,381

 

Other income

 

 

1,587,435

 

 

 

61,094

 

 

 

1,609,935

 

 

 

80,521

 

From controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

3,432,952

 

 

 

3,436,797

 

 

 

10,697,690

 

 

 

9,895,449

 

Total investment income

 

 

31,084,319

 

 

 

35,539,794

 

 

 

96,668,222

 

 

 

109,911,511

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base management fee (See Note 3)

 

 

5,842,601

 

 

 

6,190,579

 

 

 

18,449,890

 

 

 

18,811,434

 

Performance-based incentive fee (See Note 3)

 

 

1,358,165

 

 

 

4,039,292

 

 

 

8,375,564

 

 

 

12,607,547

 

Interest and expenses on debt (See Note 10)

 

 

6,723,980

 

 

 

7,005,077

 

 

 

20,638,611

 

 

 

20,674,327

 

Administrative services expenses (See Note 3)

 

 

894,000

 

 

 

898,167

 

 

 

2,682,000

 

 

 

2,666,167

 

Other general and administrative expenses

 

 

665,653

 

 

 

899,508

 

 

 

2,002,643

 

 

 

2,721,700

 

Expenses before Management Fees waiver and provision for taxes

 

 

15,484,399

 

 

 

19,032,623

 

 

 

52,148,708

 

 

 

57,481,175

 

Management Fees waiver (See Note 3)

 

 

(1,152,123

)

 

 

(1,636,779

)

 

 

(4,292,073

)

 

 

(5,027,041

)

Provision for taxes

 

 

425,000

 

 

 

350,000

 

 

 

1,275,000

 

 

 

2,000,000

 

Credit Facility amendment costs (See Notes 5 and 10)

 

 

3,866,633

 

 

 

 

 

 

3,866,633

 

 

 

 

Net expenses

 

 

18,623,909

 

 

 

17,745,844

 

 

 

52,998,268

 

 

 

54,454,134

 

Net investment income

 

 

12,460,410

 

 

 

17,793,950

 

 

 

43,669,954

 

 

 

55,457,377

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments

 

 

10,147,761

 

 

 

(45,507,467

)

 

 

(30,790,310

)

 

 

(82,092,448

)

Net change in unrealized (depreciation) appreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(5,731,239

)

 

 

50,184,115

 

 

 

7,625,092

 

 

 

27,230,048

 

Non-controlled and controlled, affiliated investments

 

 

4,039,995

 

 

 

7,770,408

 

 

 

36,206,851

 

 

 

(25,134,320

)

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

 

 

(2,137,862

)

 

 

(2,408,132

)

 

 

(2,423,726

)

 

 

15,566,671

 

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

 

 

(3,829,106

)

 

 

55,546,391

 

 

 

41,408,217

 

 

 

17,662,399

 

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

 

 

6,318,655

 

 

 

10,038,924

 

 

 

10,617,907

 

 

 

(64,430,049

)

Net increase (decrease) in net assets resulting from operations

 

$

18,779,065

 

 

$

27,832,874

 

 

$

54,287,861

 

 

$

(8,972,672

)

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

 

$

0.26

 

 

$

0.39

 

 

$

0.77

 

 

$

(0.12

)

Net investment income per common share

 

$

0.18

 

 

$

0.25

 

 

$

0.61

 

 

$

0.77

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

5


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

 

 

 

 

Nine Months Ended June 30,

 

 

 

2017

 

 

2016

 

Net increase (decrease) in net assets from operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

43,669,954

 

 

$

55,457,377

 

Net realized loss on investments

 

 

(30,790,310

)

 

 

(82,092,448

)

Net change in unrealized appreciation on investments

 

 

43,831,943

 

 

 

2,095,728

 

Net change in unrealized (appreciation) depreciation on debt

 

 

(2,423,726

)

 

 

15,566,671

 

Net increase (decrease) in net assets resulting from operations

 

 

54,287,861

 

 

 

(8,972,672

)

Distributions to stockholders:

 

 

(45,478,935

)

 

 

(59,882,867

)

Capital transactions:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

 

 

 

(12,180,491

)

Net increase (decrease) in net assets

 

 

8,808,926

 

 

 

(81,036,030

)

Net assets:

 

 

 

 

 

 

 

 

Beginning of period

 

 

643,366,856

 

 

 

716,590,542

 

End of period

 

$

652,175,782

 

 

$

635,554,512

 

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

 

$

1,310,399

 

 

$

(17,850,376

)

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)

 

 

 

 

Nine Months Ended June 30,

 

 

 

2017

 

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

54,287,861

 

 

$

(8,972,672

)

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

   operations to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Net change in net unrealized appreciation on investments

 

 

(43,831,943

)

 

 

(2,095,728

)

Net change in unrealized appreciation (depreciation) on debt

 

 

2,423,726

 

 

 

(15,566,671

)

Net realized loss on investments

 

 

30,790,310

 

 

 

82,092,448

 

Net accretion of discount and amortization of premium

 

 

(2,327,068

)

 

 

(3,992,102

)

Purchases of investments

 

 

(378,816,543

)

 

 

(307,264,571

)

Payment-in-kind income

 

 

(17,060,002

)

 

 

(10,392,583

)

Proceeds from dispositions of investments

 

 

465,353,962

 

 

 

304,104,246

 

Amortization of deferred financing costs

 

 

512,619

 

 

 

455,540

 

(Increase) decrease in interest receivable

 

 

(866,582

)

 

 

193,400

 

Increase in receivable for investments sold

 

 

(12,478,824

)

 

 

 

(Increase) decrease in prepaid expenses and other assets

 

 

(2,535,065

)

 

 

5,226,264

 

Decrease in payable for investments purchased

 

 

 

 

 

(3,591,177

)

Decrease in interest payable on debt

 

 

(1,557,797

)

 

 

(1,260,933

)

Decrease in base management fee payable, net

 

 

(167,046

)

 

 

(1,401,942

)

Decrease in performance-based incentive fee payable, net

 

 

(1,724,585

)

 

 

(1,614,787

)

Increase (decrease) in accrued other expenses

 

 

174,591

 

 

 

(1,711,098

)

Net cash provided by operating activities

 

 

92,177,614

 

 

 

34,207,634

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

 

 

 

(12,180,491

)

Distributions paid to stockholders

 

 

(52,585,018

)

 

 

(60,416,325

)

Borrowings under SBA debentures

 

 

27,500,000

 

 

 

47,500,000

 

Repayments under 2025 Notes

 

 

(71,250,000

)

 

 

 

Capitalized borrowing costs

 

 

(666,875

)

 

 

(1,151,875

)

Borrowings under Credit Facility

 

 

363,760,000

 

 

 

365,664,923

 

Repayments under Credit Facility

 

 

(331,994,400

)

 

 

(385,385,300

)

Net cash used in financing activities

 

 

(65,236,293

)

 

 

(45,969,068

)

Net increase (decrease) in cash equivalents

 

 

26,941,321

 

 

 

(11,761,434

)

Effect of exchange rate changes on cash

 

 

646,698

 

 

 

15,032

 

Cash and cash equivalents, beginning of period

 

 

75,608,113

 

 

 

49,619,256

 

Cash and cash equivalents, end of period

 

$

103,196,132

 

 

$

37,872,854

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

21,683,789

 

 

$

21,479,719

 

Taxes paid

 

$

1,280,898

 

 

$

2,154,226

 

Non-cash exchanges and conversions

 

$

37,712,296

 

 

$

60,438,396

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

JUNE 30, 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—120.9% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—46.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACC of Tamarac, LLC

 

06/20/2022

 

 

Telecommunications

 

 

10.77

%

 

L+950

 

 

 

7,500,000

 

 

$

7,350,868

 

 

$

7,350,000

 

Bottom Line Systems, LLC

 

02/13/2023

 

 

Healthcare, Education and Childcare

 

 

8.80

%

 

L+750

 

 

 

19,900,000

 

 

 

19,614,550

 

 

 

19,675,001

 

Broder Bros., Co., Tranche A

 

06/03/2021

 

 

Consumer Products

 

 

7.05

%

 

L+575

 

 

 

8,454,352

 

 

 

8,327,362

 

 

 

8,475,488

 

Broder Bros., Co., Tranche B

 

06/03/2021

 

 

Consumer Products

 

 

13.55

%

 

L+1,225

 

 

 

8,761,235

 

 

 

8,623,984

 

 

 

8,783,138

 

Cano Health, LLC

 

12/23/2021

 

 

Healthcare, Education and Childcare

 

 

11.06

%

 

L+1,000

 

 

 

19,522,688

 

 

 

19,058,944

 

 

 

19,522,688

 

Cano Health, LLC (Revolver) (8)

 

12/22/2017

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

900,000

 

 

 

 

 

 

 

DermaRite Industries LLC

 

03/03/2022

 

 

Manufacturing / Basic Industries

 

 

8.30

%

 

L+700

 

 

 

9,975,000

 

 

 

9,832,201

 

 

 

9,893,191

 

Hollander Sleep Products, LLC

 

06/09/2023

 

 

Consumer Products

 

 

9.10

%

 

L+800

 

 

 

22,500,000

 

 

 

22,051,999

 

 

 

22,050,000

 

Home Town Cable TV, LLC

 

06/20/2022

 

 

Telecommunications

 

 

10.77

%

 

L+950

 

 

 

10,000,000

 

 

 

9,800,809

 

 

 

9,800,000

 

Interior Specialists, Inc.

 

06/30/2020

 

 

Building Materials

 

 

9.06

%

 

L+800

 

 

 

24,599,092

 

 

 

24,439,441

 

 

 

24,599,092

 

Juniper Landscaping of Florida, LLC

 

12/22/2021

 

 

Personal, Food and Miscellaneous Services

 

 

10.56

%

 

L+950

 

 

 

14,083,875

 

 

 

13,824,916

 

 

 

14,048,665

 

Juniper Landscaping of Florida, LLC (Revolver)

 

12/22/2021

 

 

Personal, Food and Miscellaneous Services

 

 

10.61

%

 

L+950

 

 

 

720,000

 

 

 

720,000

 

 

 

720,000

 

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

 

12/22/2021

 

 

Personal, Food and Miscellaneous Services

 

 

 

 

 

 

 

 

2,880,000

 

 

 

 

 

 

 

K2 Pure Solutions NoCal, L.P.

 

02/19/2021

 

 

Chemicals, Plastics and Rubber

 

 

10.23

%

 

L+900

 

 

 

14,522,529

 

 

 

14,285,881

 

 

 

14,359,545

 

One Sixty Over Ninety, LLC

 

03/03/2022

 

 

Media

 

 

10.51

%

 

L+921

 

 

 

16,250,000

 

 

 

15,940,214

 

 

 

16,087,500

 

Prince Mineral Holding Corp. (5)

 

12/16/2019

 

 

Mining, Steel, Iron and Non-Precious Metals

 

 

11.50

%

 

 

 

 

 

14,250,000

 

 

 

14,178,706

 

 

 

14,606,250

 

Robertshaw US Holding Corp.

 

06/18/2019

 

 

Electronics

 

 

8.50

%

 

L+700

 

 

 

15,631,457

 

 

 

15,578,747

 

 

 

15,616,373

 

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

 

06/28/2019

 

 

Hotels, Motels, Inns and Gaming

 

 

11.50

%

 

L+1,050

 

 

29,885,887

 

 

 

30,881,670

 

 

 

34,171,564

 

 

 

 

 

 

 

 

 

 

(PIK 3.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triad Manufacturing, Inc.

 

12/28/2020

 

 

Manufacturing / Basic Industries

 

 

12.48

%

 

L+1,125

 

 

 

25,337,545

 

 

 

24,956,129

 

 

 

25,337,545

 

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

 

02/12/2020

 

 

Buildings and Real Estate

 

 

10.80

%

 

L+1,050

 

(7)

£

20,820,895

 

 

 

33,487,114

 

 

 

27,315,839

 

US Med Acquisition, Inc.

 

08/13/2021

 

 

Healthcare, Education and Childcare

 

 

10.30

%

 

L+900

 

 

 

8,585,938

 

 

 

8,585,938

 

 

 

8,414,219

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

301,539,473

 

 

 

300,826,098

 

Second Lien Secured Debt—57.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acre Operating Company, LLC

 

12/12/2023

 

 

Electronics

 

 

10.67

%

 

L+950

 

 

 

38,800,000

 

 

 

38,149,962

 

 

 

38,800,000

 

Balboa Capital Corporation (12)

 

03/04/2022

 

 

Financial Services

 

 

13.75

%

 

 

 

 

 

28,500,000

 

 

 

28,279,535

 

 

 

28,500,000

 

Harbortouch Payments, LLC

 

10/11/2024

 

 

Financial Services

 

 

10.73

%

 

L+950

 

 

 

18,900,000

 

 

 

18,574,663

 

 

 

18,900,000

 

Howard Berger Co. LLC

 

09/30/2020

 

 

Distribution

 

 

11.30

%

 

L+1,000

 

 

 

42,375,000

 

 

 

40,828,535

 

 

 

40,256,250

 

 

 

 

 

 

 

 

 

 

(PIK 5.25

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Infogroup, Inc.

 

04/03/2024

 

 

Other Media

 

 

10.40

%

 

L+925

 

 

 

20,400,000

 

 

 

20,003,304

 

 

 

20,196,000

 

Intermediate Transportation 100, LLC (5)

 

03/01/2019

 

 

Cargo Transport

 

 

11.00

%

 

 

 

 

 

409,672

 

 

 

298,661

 

 

 

409,672

 

 

 

 

 

 

 

 

 

 

(PIK 11.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MailSouth, Inc.

 

10/22/2021

 

 

Printing and Publishing

 

 

11.65

%

 

L+1,050

 

 

 

26,425,000

 

 

 

25,984,206

 

 

 

26,689,250

 

Novitex Acquisition, LLC

 

07/07/2021

 

 

Business Services

 

 

12.32

%

 

L+1,100

 

 

 

44,625,000

 

 

 

44,157,954

 

 

 

43,732,500

 

Parq Holdings Limited Partnership (9), (12)

 

12/17/2021

 

 

Hotels, Motels, Inns and Gaming

 

 

13.23

%

 

L+1,200

 

 

 

75,000,000

 

 

 

75,000,000

 

 

 

76,642,695

 

Pre-Paid Legal Services, Inc.

 

07/01/2020

 

 

Personal, Food and Miscellaneous Services

 

 

10.25

%

 

L+900

 

 

 

62,750,000

 

 

 

62,264,429

 

 

 

62,985,312

 

Veritext Corp.

 

01/30/2023

 

 

Business Services

 

 

10.30

%

 

L+900

 

 

 

18,834,375

 

 

 

18,335,071

 

 

 

18,457,689

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

371,876,320

 

 

 

375,569,368

 

Subordinated Debt/Corporate Notes—10.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cascade Environmental LLC

 

08/20/2021

 

 

Environmental Services