pnnt-10q_20171231.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 DECEMBER 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 February 7, 2018 was 71,060,836.

 

 


 

PENNANTPARK INVESTMENT CORPORATION

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

TABLE OF CONTENTS

 

 

 

 

 

PART I. CONSOLIDATED FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Consolidated Financial Statements

 

 

 

 

 

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

 

4

 

 

 

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

 

5

 

 

 

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

 

6

 

 

 

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

 

7

 

 

 

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

 

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

 

32

 

 

 

Item 4. Controls and Procedures

 

32

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

Item 1. Legal Proceedings

 

33

 

 

 

Item 1A. Risk Factors

 

33

 

 

 

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

 

33

 

 

 

Item 3. Defaults Upon Senior Securities

 

33

 

 

 

Item 4. Mine Safety Disclosures

 

33

 

 

 

Item 5. Other Information

 

33

 

 

 

Item 6. Exhibits

 

34

 

 

 

SIGNATURES

 

35

 

 

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; “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

 

 

 

 

December 31, 2017

 

 

September 30, 2017

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost—$774,071,408 and $824,106,322, respectively)

 

$

801,023,017

 

 

$

849,351,548

 

Non-controlled, affiliated investments (cost—$186,604,156 and $185,799,943, respectively)

 

 

192,144,595

 

 

 

189,674,977

 

Controlled, affiliated investments (cost—$203,199,235 and $200,120,407, respectively)

 

 

107,453,444

 

 

 

114,550,983

 

Total of investments (cost—$1,163,874,799 and $1,210,026,672, respectively)

 

 

1,100,621,056

 

 

 

1,153,577,508

 

Cash and cash equivalents (cost—$72,781,092 and $38,182,373, respectively)

 

 

72,832,675

 

 

 

38,202,068

 

Interest receivable

 

 

7,759,810

 

 

 

5,906,976

 

Prepaid expenses and other assets

 

 

2,979,549

 

 

 

4,509,289

 

Total assets

 

 

1,184,193,090

 

 

 

1,202,195,841

 

Liabilities

 

 

 

 

 

 

 

 

Distributions payable

 

 

12,790,950

 

 

 

12,790,950

 

Payable for investments purchased

 

 

 

 

 

1,014,000

 

Credit Facility payable (cost—$79,392,900 and $79,392,900, respectively) (See Notes 5 and 10)

 

 

76,578,075

 

 

 

76,037,341

 

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

 

 

253,997,500

 

 

 

255,665,000

 

SBA debentures payable, net (par—$184,000,000 and $199,000,000, respectively) (See Notes 5 and 10)

 

 

179,739,718

 

 

 

194,364,653

 

Base management fee payable, net (See Note 3)

 

 

4,817,516

 

 

 

4,845,237

 

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

 

 

2,675,573

 

 

 

2,270,008

 

Interest payable on debt

 

 

5,507,033

 

 

 

6,876,756

 

Accrued other expenses

 

 

1,773,807

 

 

 

1,523,425

 

Total liabilities

 

 

537,880,172

 

 

 

555,387,370

 

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

 

 

818,737,784

 

 

 

818,737,784

 

Undistributed net investment income

 

 

4,710,289

 

 

 

3,333,195

 

Accumulated net realized loss on investments

 

 

(112,824,872

)

 

 

(116,598,355

)

Net unrealized depreciation on investments

 

 

(63,198,669

)

 

 

(56,425,773

)

Net unrealized appreciation on debt

 

 

(1,182,675

)

 

 

(2,309,441

)

Total net assets

 

$

646,312,918

 

 

$

646,808,471

 

Total liabilities and net assets

 

$

1,184,193,090

 

 

$

1,202,195,841

 

Net asset value per share

 

$

9.10

 

 

$

9.10

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

4


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

Three Months Ended December 31,

 

 

 

2017

 

 

2016

 

Investment income:

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

Interest

 

$

21,383,219

 

 

$

21,651,426

 

Payment in kind

 

 

1,284,909

 

 

 

220,704

 

Other income

 

 

1,586,642

 

 

 

2,102,536

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

Interest

 

 

1,215,834

 

 

 

2,790,932

 

Payment in kind

 

 

1,573,306

 

 

 

1,434,749

 

Other income

 

 

 

 

 

22,500

 

From controlled, affiliated investments:

 

 

 

 

 

 

 

 

Interest

 

 

480,430

 

 

 

179,735

 

Payment in kind

 

 

1,144,085

 

 

 

3,466,329

 

Total investment income

 

 

28,668,425

 

 

 

31,868,911

 

Expenses:

 

 

 

 

 

 

 

 

Base management fee (See Note 3)

 

 

5,735,137

 

 

 

6,274,782

 

Performance-based incentive fee (See Note 3)

 

 

3,185,204

 

 

 

3,374,210

 

Interest and expenses on debt (See Note 10)

 

 

5,857,378

 

 

 

6,735,574

 

Administrative services expenses (See Note 3)

 

 

521,625

 

 

 

894,000

 

Other general and administrative expenses

 

 

628,290

 

 

 

668,507

 

Expenses before Management Fees waiver and provision for taxes

 

 

15,927,634

 

 

 

17,947,073

 

Management Fees waiver (See Note 3)

 

 

(1,427,253

)

 

 

(1,543,839

)

Provision for taxes

 

 

 

 

 

425,000

 

Net expenses

 

 

14,500,381

 

 

 

16,828,234

 

Net investment income

 

 

14,168,044

 

 

 

15,040,677

 

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

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments on:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

1,793,043

 

 

 

(22,195,334

)

Non-controlled and controlled, affiliated investments

 

 

1,980,440

 

 

 

 

Net realized gain (loss) on investments

 

 

3,773,483

 

 

 

(22,195,334

)

Net change in unrealized (depreciation) appreciation on:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

1,738,065

 

 

 

19,636,201

 

Non-controlled and controlled, affiliated investments

 

 

(8,510,961

)

 

 

5,736,899

 

Debt depreciation (See Notes 5 and 10)

 

 

1,126,766

 

 

 

5,830,684

 

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

 

 

(5,646,130

)

 

 

31,203,784

 

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

 

 

(1,872,647

)

 

 

9,008,450

 

Net increase in net assets resulting from operations

 

$

12,295,397

 

 

$

24,049,127

 

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

 

$

0.18

 

 

$

0.34

 

Net investment income per common share

 

$

0.20

 

 

$

0.21

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

5


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

 

 

 

 

Three Months Ended December 31,

 

 

 

2017

 

 

2016

 

Net increase in net assets resulting from operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

14,168,044

 

 

$

15,040,677

 

Net realized gain (loss) on investments

 

 

3,773,483

 

 

 

(22,195,334

)

Net change in unrealized (depreciation) appreciation on investments

 

 

(6,772,896

)

 

 

25,373,100

 

Net change in unrealized depreciation on debt

 

 

1,126,766

 

 

 

5,830,684

 

Net increase in net assets resulting from operations

 

 

12,295,397

 

 

 

24,049,127

 

Distributions to stockholders:

 

 

(12,790,950

)

 

 

(19,897,034

)

Net (decrease) increase in net assets

 

 

(495,553

)

 

 

4,152,093

 

Net assets:

 

 

 

 

 

 

 

 

Beginning of period

 

 

646,808,471

 

 

 

643,366,856

 

End of period

 

$

646,312,918

 

 

$

647,518,949

 

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

 

$

4,710,289

 

 

$

(1,736,977

)

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

6


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

Three Months Ended December 31,

 

 

 

2017

 

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

12,295,397

 

 

$

24,049,127

 

Adjustments to reconcile net increase in net assets resulting from

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

 

 

 

 

 

 

 

 

Net change in net unrealized depreciation (appreciation) on investments

 

 

6,772,896

 

 

 

(25,373,100

)

Net change in unrealized depreciation on debt

 

 

(1,126,766

)

 

 

(5,830,684

)

Net realized (gain) loss on investments

 

 

(3,773,483

)

 

 

22,195,334

 

Net accretion of discount and amortization of premium

 

 

(239,321

)

 

 

(938,502

)

Purchases of investments

 

 

(138,433,423

)

 

 

(229,234,313

)

Payment-in-kind income

 

 

(3,706,405

)

 

 

(2,914,692

)

Proceeds from dispositions of investments

 

 

192,303,018

 

 

 

64,209,266

 

Amortization of deferred financing costs

 

 

375,065

 

 

 

168,635

 

Increase in interest receivable

 

 

(1,852,834

)

 

 

(5,716,465

)

Decrease in prepaid expenses and other assets

 

 

1,529,740

 

 

 

636,507

 

(Decrease) increase in payable for investments purchased

 

 

(1,014,000

)

 

 

50,399,000

 

Decrease in interest payable on debt

 

 

(1,369,723

)

 

 

(951,901

)

(Decrease) increase in base management fee payable, net

 

 

(27,721

)

 

 

195,987

 

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

 

 

405,565

 

 

 

(31,108

)

Increase in accrued other expenses

 

 

250,382

 

 

 

795,503

 

Net cash provided by (used in) operating activities

 

 

62,388,387

 

 

 

(108,341,406

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Distributions paid to stockholders

 

 

(12,790,950

)

 

 

(19,897,034

)

Repayments under SBA debentures

 

 

(15,000,000

)

 

 

 

Borrowings under Credit Facility

 

 

91,000,000

 

 

 

160,260,000

 

Repayments under Credit Facility

 

 

(91,000,000

)

 

 

(62,481,000

)

Net cash (used in) provided by financing activities

 

 

(27,790,950

)

 

 

77,881,966

 

Net increase (decrease) in cash equivalents

 

 

34,597,437

 

 

 

(30,459,440

)

Effect of exchange rate changes on cash

 

 

33,170

 

 

 

191,903

 

Cash and cash equivalents, beginning of period

 

 

38,202,068

 

 

 

75,608,113

 

Cash and cash equivalents, end of period

 

$

72,832,675

 

 

$

45,340,576

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

6,852,037

 

 

$

7,518,840

 

Taxes paid

 

$

 

 

$

86,349

 

Non-cash exchanges and conversions

 

$

 

 

$

18,026,006

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

DECEMBER 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—123.9% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—49.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACC of Tamarac, LLC

 

06/20/2022

 

 

Telecommunications

 

 

11.18

%

 

3M L+950

 

 

 

7,462,500

 

 

$

7,347,875

 

 

$

7,462,500

 

Allied America, Inc.

 

08/08/2022

 

 

Business Services

 

 

8.70

%

 

3M L+700

 

 

 

20,598,254

 

 

 

20,221,622

 

 

 

20,598,254

 

Allied America, Inc. (Revolver) (8)

 

08/08/2022

 

 

Business Services

 

 

 

 

 

 

 

 

2,000,000

 

 

 

 

 

 

 

Bottom Line Systems, LLC

 

02/13/2023

 

 

Healthcare, Education and Childcare

 

 

9.19

%

 

3M L+750

 

 

 

19,800,000

 

 

 

19,534,457

 

 

 

19,800,000

 

Cano Health, LLC

 

12/23/2021

 

 

Healthcare, Education and Childcare

 

 

9.87

%

 

1M L+850

 

 

 

23,397,021

 

 

 

22,883,876

 

 

 

23,397,021

 

Cano Health, LLC (Revolver)

 

09/21/2018

 

 

Healthcare, Education and Childcare

 

 

9.87

%

 

1M L+850

 

 

 

540,000

 

 

 

540,000

 

 

 

540,000

 

Cano Health, LLC (Revolver) (8)

 

09/21/2018

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

360,000

 

 

 

 

 

 

 

DermaRite Industries LLC

 

03/03/2022

 

 

Manufacturing / Basic Industries

 

 

8.57

%

 

1M L+700

 

 

 

9,925,000

 

 

 

9,794,823

 

 

 

9,855,591

 

Deva Holdings, Inc.

 

10/31/2023

 

 

Consumer Products

 

 

8.32

%

 

3M L+675

 

 

 

5,000,000

 

 

 

4,902,195

 

 

 

4,900,000

 

Deva Holdings, Inc. (8)

 

10/31/2023

 

 

Consumer Products

 

 

 

 

 

 

 

 

385,000

 

 

 

 

 

 

 

eCommission Financial Services, Inc. (12)

 

08/29/2022

 

 

Financial Services

 

 

9.07

%

 

1M L+750

 

 

 

19,950,000

 

 

 

19,572,894

 

 

 

19,950,000

 

eCommission Financial Services, Inc. (8), (12)

 

08/29/2022

 

 

Financial Services

 

 

 

 

 

 

 

 

4,000,000

 

 

 

 

 

 

 

eCommission Financial Services, Inc. (Revolver) (8), (12)

 

08/29/2022

 

 

Financial Services

 

 

 

 

 

 

 

 

4,000,000

 

 

 

 

 

 

 

Hollander Sleep Products, LLC

 

06/09/2023

 

 

Consumer Products

 

 

9.69

%

 

3M L+800

 

 

 

19,755,213

 

 

 

19,386,938

 

 

 

19,360,109

 

Home Town Cable TV, LLC

 

06/20/2022

 

 

Telecommunications

 

 

11.18

%

 

3M L+950

 

 

 

10,000,000

 

 

 

9,815,803

 

 

 

10,000,000

 

Juniper Landscaping of Florida, LLC

 

12/22/2021

 

 

Personal, Food and Miscellaneous Services

 

 

10.87

%

 

1M L+950

 

 

 

13,903,313

 

 

 

13,670,663

 

 

 

13,903,313

 

K2 Pure Solutions NoCal, L.P.

 

02/19/2021

 

 

Chemicals, Plastics and Rubber

 

 

10.57

%

 

1M L+900

 

 

 

14,522,529

 

 

 

14,294,511

 

 

 

14,404,242

 

One Sixty Over Ninety, LLC

 

03/03/2022

 

 

Media

 

 

10.84

%

 

3M L+918

 

 

 

16,250,000

 

 

 

15,966,825

 

 

 

16,250,000

 

Prince Mineral Holding Corp. (5)

 

12/16/2019

 

 

Mining, Steel, Iron and Non-Precious Metals

 

 

11.50

%

 

 

 

 

 

11,875,000

 

 

 

11,825,258

 

 

 

12,231,250

 

SFP Holding, Inc.

 

09/01/2022

 

 

Buildings and Real Estate

 

 

7.73

%

 

3M L+625

 

 

 

17,500,000

 

 

 

17,172,080

 

 

 

17,500,000

 

SFP Holding, Inc. (8)

 

09/01/2022

 

 

Buildings and Real Estate

 

 

 

 

 

 

 

 

5,000,000

 

 

 

 

 

 

 

SFP Holding, Inc. (Revolver) (8)

 

09/01/2022

 

 

Buildings and Real Estate

 

 

 

 

 

 

 

 

2,500,000

 

 

 

 

 

 

 

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

 

06/28/2019

 

 

Hotels, Motels, Inns and Gaming

 

 

11.50

%

 

3M L+1,050

 

 

30,417,040

 

 

 

31,583,845

 

 

 

37,620,431

 

 

 

 

 

 

 

 

 

 

(PIK 3.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triad Manufacturing, Inc.

 

12/28/2020

 

 

Manufacturing / Basic Industries

 

 

12.82

%

 

1M L+1,125

 

 

 

24,258,101

 

 

 

23,930,878

 

 

 

24,258,101

 

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

 

02/12/2020

 

 

Buildings and Real Estate

 

 

9.02

%

 

3M L+850

 

(7)

£

16,670,198

 

 

 

26,958,555

 

 

 

22,562,106

 

US Med Acquisition, Inc.

 

08/13/2021

 

 

Healthcare, Education and Childcare

 

 

10.69

%

 

1M L+900

 

 

 

8,542,188

 

 

 

8,542,188

 

 

 

8,115,078

 

Whitney, Bradley & Brown, Inc.

 

10/18/2022

 

 

Aerospace and Defense

 

 

10.57

%

 

1M L+900

 

 

 

19,451,250

 

 

 

19,074,851

 

 

 

19,256,737

 

Whitney, Bradley & Brown, Inc. (Revolver)

 

10/18/2022

 

 

Aerospace and Defense

 

 

10.57

%

 

1M L+900

 

 

 

440,000

 

 

 

440,000

 

 

 

435,600

 

Whitney, Bradley & Brown, Inc. (Revolver) (8)

 

10/18/2022

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

1,026,667

 

 

 

 

 

 

(10,267

)

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

317,460,137

 

 

 

322,390,066

 

Second Lien Secured Debt—56.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balboa Capital Corporation (12)

 

03/04/2022

 

 

Financial Services

 

 

13.75

%

 

 

 

 

 

28,500,000

 

 

 

28,297,616

 

 

 

28,500,000

 

Condor Borrower, LLC

 

04/25/2025

 

 

Business Services

 

 

10.12

%

 

3M L+875

 

 

 

12,500,000

 

 

 

12,252,319

 

 

 

12,312,500

 

DecoPac, Inc.

 

03/31/2025

 

 

Beverage, Food and Tobacco

 

 

9.94

%

 

3M L+825

 

 

 

23,024,259

 

 

 

22,573,436

 

 

 

22,794,017

 

Howard Berger Co. LLC

 

09/30/2020

 

 

Distribution

 

 

11.70

%

 

3M L+1,000

 

 

 

43,500,000

 

 

 

42,156,867

 

 

 

41,325,000

 

 

 

 

 

 

 

 

 

 

(PIK 5.12

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Infogroup, Inc.

 

04/03/2024

 

 

Other Media

 

 

10.94

%

 

3M L+925

 

 

 

20,400,000

 

 

 

20,022,599

 

 

 

20,094,000

 

Intermediate Transportation 100, LLC (5)

 

03/01/2019

 

 

Cargo Transport

 

 

11.00

%

 

 

 

 

 

432,203

 

 

 

349,328

 

 

 

432,203

 

 

 

 

 

 

 

 

 

 

(PIK 11.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lighthouse Network, LLC

 

11/28/2025

 

 

Financial Services

 

 

10.07

%

 

3M L+850

 

 

 

22,000,000

 

 

 

21,781,290

 

 

 

21,890,000

 

MailSouth, Inc.

 

10/22/2021

 

 

Printing and Publishing

 

 

11.84

%

 

3M L+1,050

 

 

 

26,425,000

 

 

 

26,025,392

 

 

 

26,689,250

 

Parq Holdings Limited Partnership (9), (12)

 

12/17/2021

 

 

Hotels, Motels, Inns and Gaming

 

 

13.69

%

 

3M L+1,200

 

 

 

76,500,000

 

 

 

76,500,000

 

 

 

83,322,358

 

Pathway Partners Vet Management LLC

 

10/10/2025

 

 

Healthcare, Education and Childcare

 

 

9.57

%

 

1M L+800

 

 

 

5,888,889

 

 

 

5,830,883

 

 

 

5,830,000

 

Pathway Partners Vet Management LLC (8)

 

10/10/2025

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

6,111,111

 

 

 

 

 

 

(61,111

)

Pre-Paid Legal Services, Inc.

 

07/01/2020

 

 

Personal, Food and Miscellaneous Services

 

 

10.57

%

 

1M L+900

 

 

 

42,750,000

 

 

 

42,474,904

 

 

 

42,696,563

 

PT Network, LLC

 

04/12/2023

 

 

Healthcare, Education and Childcare

 

 

11.36

%

 

3M L+1,000

 

 

 

41,666,667

 

 

 

40,865,252

 

 

 

40,833,333

 

PT Network, LLC (8)

 

04/12/2023

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

8,333,333

 

 

 

 

 

 

(166,667

)

Veritext Corp.

 

01/30/2023

 

 

Business Services

 

 

10.69

%

 

3M L+900

 

 

 

18,834,375

 

 

 

18,368,715

 

 

 

18,834,375

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

357,498,601

 

 

 

365,325,821

 

Subordinated Debt/Corporate Notes—8.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cascade Environmental LLC

 

08/20/2021

 

 

Environmental Services

 

 

12.00

%

 

 

 

 

 

32,675,553

 

 

 

32,185,324