pnnt-10q_20180331.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, 2018

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 9, 2018 was 71,060,836.

 

 


 

PENNANTPARK INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2018

TABLE OF CONTENTS

 

 

 

 

 

PART I. CONSOLIDATED FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Consolidated Financial Statements

 

 

 

 

 

Consolidated Statements of Assets and Liabilities as of March 31, 2018 (unaudited) and September 30, 2017

 

4

 

 

 

Consolidated Statements of Operations for the three and six months ended March 31, 2018 and 2017 (unaudited)

 

5

 

 

 

Consolidated Statements of Changes in Net Assets for the six months ended March 31, 2018 and 2017 (unaudited)

 

6

 

 

 

Consolidated Statements of Cash Flows for the six months ended March 31, 2018 and 2017 (unaudited)

 

7

 

 

 

Consolidated Schedules of Investments as of March 31, 2018 (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

 

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, under the Securities Exchange Act of 1934, as amended, or the Exchange Act. 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

 

 

 

 

March 31, 2018

 

 

September 30, 2017

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost—$705,364,389 and $824,106,322, respectively)

 

$

728,195,206

 

 

$

849,351,548

 

Non-controlled, affiliated investments (cost—$91,601,721 and $185,799,943, respectively)

 

 

74,902,002

 

 

 

189,674,977

 

Controlled, affiliated investments (cost—$243,662,176 and $200,120,407, respectively)

 

 

144,842,821

 

 

 

114,550,983

 

Total of investments (cost—$1,040,628,286 and $1,210,026,672, respectively)

 

 

947,940,029

 

 

 

1,153,577,508

 

Cash and cash equivalents (cost—$170,265,666 and $38,182,373, respectively)

 

 

170,219,549

 

 

 

38,202,068

 

Interest receivable

 

 

6,118,899

 

 

 

5,906,976

 

Receivable for investments sold

 

 

26,983,525

 

 

 

 

Prepaid expenses and other assets

 

 

2,285,185

 

 

 

4,509,289

 

Total assets

 

 

1,153,547,187

 

 

 

1,202,195,841

 

Liabilities

 

 

 

 

 

 

 

 

Distributions payable

 

 

12,790,950

 

 

 

12,790,950

 

Payable for investments purchased

 

 

 

 

 

1,014,000

 

Credit Facility payable (cost—$41,520,000 and $79,392,900, respectively) (See Notes 5 and 10)

 

 

41,685,939

 

 

 

76,037,341

 

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

 

 

250,617,500

 

 

 

255,665,000

 

SBA debentures payable, net (par—$200,000,000 and $199,000,000, respectively) (See Notes 5 and 10)

 

 

194,866,410

 

 

 

194,364,653

 

Base management fee payable, net (See Note 3)

 

 

3,873,738

 

 

 

4,845,237

 

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

 

 

2,845,616

 

 

 

2,270,008

 

Interest payable on debt

 

 

6,444,374

 

 

 

6,876,756

 

Accrued other expenses

 

 

865,683

 

 

 

1,523,425

 

Total liabilities

 

 

513,990,210

 

 

 

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

 

 

5,334,784

 

 

 

3,333,195

 

Accumulated net realized loss on investments

 

 

(91,071,422

)

 

 

(116,598,355

)

Net unrealized depreciation on investments

 

 

(92,731,791

)

 

 

(56,425,773

)

Net unrealized appreciation on debt

 

 

(783,439

)

 

 

(2,309,441

)

Total net assets

 

$

639,556,977

 

 

$

646,808,471

 

Total liabilities and net assets

 

$

1,153,547,187

 

 

$

1,202,195,841

 

Net asset value per share

 

$

9.00

 

 

$

9.10

 

 

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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

19,734,120

 

 

$

22,881,267

 

 

$

41,117,339

 

 

$

44,532,692

 

Payment in kind

 

 

1,675,075

 

 

 

1,209,049

 

 

 

2,959,984

 

 

 

1,429,753

 

Other income

 

 

2,486,424

 

 

 

1,565,617

 

 

 

4,073,066

 

 

 

3,668,153

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

1,376,065

 

 

 

2,990,507

 

 

 

2,591,899

 

 

 

5,781,439

 

Payment in kind

 

 

234,349

 

 

 

1,449,879

 

 

 

1,807,655

 

 

 

2,884,628

 

Other income

 

 

 

 

 

 

 

 

 

 

 

22,500

 

From controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

970,264

 

 

 

210,809

 

 

 

1,450,694

 

 

 

390,544

 

Payment in kind

 

 

749,312

 

 

 

3,407,865

 

 

 

1,893,397

 

 

 

6,874,194

 

Total investment income

 

 

27,225,609

 

 

 

33,714,993

 

 

 

55,894,034

 

 

 

65,583,903

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base management fee (See Note 3)

 

 

3,873,739

 

 

 

6,332,507

 

 

 

9,608,876

 

 

 

12,607,289

 

Performance-based incentive fee (See Note 3)

 

 

2,845,616

 

 

 

3,643,189

 

 

 

6,030,820

 

 

 

7,017,399

 

Interest and expenses on debt (See Note 10)

 

 

5,940,893

 

 

 

7,179,057

 

 

 

11,798,271

 

 

 

13,914,631

 

Administrative services expenses (See Note 3)

 

 

521,625

 

 

 

894,000

 

 

 

1,043,250

 

 

 

1,788,000

 

Other general and administrative expenses

 

 

628,290

 

 

 

668,483

 

 

 

1,256,580

 

 

 

1,336,990

 

Expenses before Management Fees waiver and provision for taxes

 

 

13,810,163

 

 

 

18,717,236

 

 

 

29,737,797

 

 

 

36,664,309

 

Management Fees waiver (See Note 3)

 

 

 

 

 

(1,596,111

)

 

 

(1,427,253

)

 

 

(3,139,950

)

Provision for taxes

 

 

 

 

 

425,000

 

 

 

 

 

 

850,000

 

Net expenses

 

 

13,810,163

 

 

 

17,546,125

 

 

 

28,310,544

 

 

 

34,374,359

 

Net investment income

 

 

13,415,446

 

 

 

16,168,868

 

 

 

27,583,490

 

 

 

31,209,544

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

12,876,286

 

 

 

13,248,244

 

 

 

14,669,329

 

 

 

(8,947,090

)

Non-controlled and controlled, affiliated investments

 

 

8,877,164

 

 

 

(31,990,981

)

 

 

10,857,604

 

 

 

(31,990,981

)

Net realized gain (loss) on investments

 

 

21,753,450

 

 

 

(18,742,737

)

 

 

25,526,933

 

 

 

(40,938,071

)

Net change in unrealized (depreciation) appreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(4,219,398

)

 

 

(6,279,870

)

 

 

(2,481,333

)

 

 

13,356,331

 

Non-controlled and controlled, affiliated investments

 

 

(25,313,724

)

 

 

26,429,957

 

 

 

(33,824,685

)

 

 

32,166,856

 

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

 

 

399,236

 

 

 

(6,116,548

)

 

 

1,526,002

 

 

 

(285,864

)

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

 

 

(29,133,886

)

 

 

14,033,539

 

 

 

(34,780,016

)

 

 

45,237,323

 

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

 

 

(7,380,436

)

 

 

(4,709,198

)

 

 

(9,253,083

)

 

 

4,299,252

 

Net increase in net assets resulting from operations

 

$

6,035,010

 

 

$

11,459,670

 

 

$

18,330,407

 

 

$

35,508,796

 

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

 

$

0.08

 

 

$

0.16

 

 

$

0.26

 

 

$

0.50

 

Net investment income per common share

 

$

0.19

 

 

$

0.23

 

 

$

0.39

 

 

$

0.44

 

 

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,

 

 

 

2018

 

 

2017

 

Net increase in net assets resulting from operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

27,583,490

 

 

$

31,209,544

 

Net realized gain (loss) on investments

 

 

25,526,933

 

 

 

(40,938,071

)

Net change in unrealized (depreciation) appreciation on investments

 

 

(36,306,018

)

 

 

45,523,187

 

Net change in unrealized depreciation (appreciation) on debt

 

 

1,526,002

 

 

 

(285,864

)

Net increase in net assets resulting from operations

 

 

18,330,407

 

 

 

35,508,796

 

Distributions to stockholders:

 

 

(25,581,901

)

 

 

(32,687,985

)

Net (decrease) increase in net assets

 

 

(7,251,494

)

 

 

2,820,811

 

Net assets:

 

 

 

 

 

 

 

 

Beginning of period

 

 

646,808,471

 

 

 

643,366,856

 

End of period

 

$

639,556,977

 

 

$

646,187,667

 

Undistributed net investment income, at end of period

 

$

5,334,784

 

 

$

1,640,939

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

6


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

Six Months Ended March 31,

 

 

 

2018

 

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

18,330,407

 

 

$

35,508,796

 

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

 

 

36,306,018

 

 

 

(45,523,187

)

Net change in unrealized (depreciation) appreciation on debt

 

 

(1,526,002

)

 

 

285,864

 

Net realized (gain) loss on investments

 

 

(25,526,933

)

 

 

40,938,071

 

Net accretion of discount and amortization of premium

 

 

(1,065,571

)

 

 

(1,791,876

)

Purchases of investments

 

 

(235,438,471

)

 

 

(289,692,765

)

Payment-in-kind income

 

 

(7,374,499

)

 

 

(11,287,854

)

Proceeds from dispositions of investments

 

 

438,686,113

 

 

 

266,232,636

 

Amortization of deferred financing costs

 

 

1,223,507

 

 

 

334,666

 

Increase in interest receivable

 

 

(211,923

)

 

 

(3,134,394

)

Increase in receivable for investments sold

 

 

(26,983,525

)

 

 

(12,086,044

)

Decrease in prepaid expenses and other assets

 

 

2,224,104

 

 

 

340,117

 

Decrease in payable for investments purchased

 

 

(1,014,000

)

 

 

 

(Decrease) increase in interest payable on debt

 

 

(432,382

)

 

 

129,187

 

(Decrease) increase in base management fee payable, net

 

 

(971,499

)

 

 

244,475

 

Increase in performance-based incentive fee payable, net

 

 

575,608

 

 

 

194,836

 

(Decrease) increase in accrued other expenses

 

 

(657,742

)

 

 

487,032

 

Net cash provided by (used in) operating activities

 

 

196,143,210

 

 

 

(18,820,440

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Capitalized borrowing costs

 

 

(1,721,750

)

 

 

 

Distributions paid to stockholders

 

 

(25,581,900

)

 

 

(39,794,068

)

Borrowings under SBA debentures

 

 

71,000,000

 

 

 

 

Repayments under SBA debentures

 

 

(70,000,000

)

 

 

 

Borrowings under Credit Facility

 

 

132,520,000

 

 

 

345,760,000

 

Repayments under Credit Facility

 

 

(170,392,900

)

 

 

(296,513,400

)

Net cash (used in) provided by financing activities

 

 

(64,176,550

)

 

 

9,452,532

 

Net increase (decrease) in cash equivalents

 

 

131,966,660

 

 

 

(9,367,908

)

Effect of exchange rate changes on cash

 

 

50,821

 

 

 

325,002

 

Cash and cash equivalents, beginning of period

 

 

38,202,068

 

 

 

75,608,113

 

Cash and cash equivalents, end of period

 

$

170,219,549

 

 

$

66,565,207

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

11,007,147

 

 

$

13,450,777

 

Taxes paid

 

$

498,102

 

 

$

102,458

 

Non-cash exchanges and conversions

 

$

31,942,605

 

 

$

25,049,756

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

MARCH 31, 2018

(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—113.9% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—43.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACC of Tamarac, LLC

 

06/20/2022

 

 

Telecommunications

 

 

11.52

%

 

3M L+950

 

 

 

7,443,750

 

 

$

7,336,636

 

 

$

7,518,188

 

Allied America, Inc.

 

08/08/2022

 

 

Business Services

 

 

9.31

%

 

3M L+700

 

 

 

21,548,654

 

 

 

21,193,027

 

 

 

21,656,397

 

Allied America, Inc. (Revolver) (7)

 

08/08/2022

 

 

Business Services

 

 

 

 

 

 

 

 

2,000,000

 

 

 

 

 

 

 

Bazaarvoice, Inc.

 

02/01/2024

 

 

Printing and Publishing

 

 

9.77

%

 

3M L+800

 

 

 

15,000,000

 

 

 

14,858,965

 

 

 

14,850,000

 

Bottom Line Systems, LLC

 

02/13/2023

 

 

Healthcare, Education and Childcare

 

 

9.19

%

 

3M L+750

 

 

 

19,750,000

 

 

 

19,494,826

 

 

 

19,750,000

 

Cano Health, LLC

 

12/23/2021

 

 

Healthcare, Education and Childcare

 

 

10.17

%

 

1M L+850

 

 

 

25,512,022

 

 

 

24,954,691

 

 

 

25,512,022

 

Cano Health, LLC (Revolver) (7)

 

09/21/2018

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

900,000

 

 

 

 

 

 

 

DermaRite Industries LLC

 

03/03/2022

 

 

Manufacturing / Basic Industries

 

 

8.88

%

 

1M L+700

 

 

 

9,900,000

 

 

 

9,775,710

 

 

 

9,706,178

 

Deva Holdings, Inc.

 

10/31/2023

 

 

Consumer Products

 

 

8.14

%

 

3M L+675

 

 

 

4,987,500

 

 

 

4,894,011

 

 

 

4,937,625

 

Deva Holdings, Inc. (7)

 

10/31/2022

 

 

Consumer Products

 

 

 

 

 

 

 

 

385,000

 

 

 

 

 

 

 

eCommission Financial Services, Inc. (11)

 

08/29/2022

 

 

Financial Services

 

 

9.39

%

 

1M L+750

 

 

 

19,900,000

 

 

 

19,539,982

 

 

 

19,900,000

 

eCommission Financial Services, Inc. (7), (11)

 

08/29/2022

 

 

Financial Services

 

 

 

 

 

 

 

 

4,000,000

 

 

 

 

 

 

 

eCommission Financial Services, Inc. (Revolver) (7), (11)

 

08/29/2022

 

 

Financial Services

 

 

 

 

 

 

 

 

4,000,000

 

 

 

 

 

 

 

Hollander Sleep Products, LLC

 

06/09/2023

 

 

Consumer Products

 

 

10.30

%

 

3M L+800

 

 

 

19,713,838

 

 

 

19,359,189

 

 

 

19,713,838

 

Home Town Cable TV, LLC

 

06/20/2022

 

 

Telecommunications

 

 

11.52

%

 

3M L+950

 

 

 

10,000,000

 

 

 

9,826,816

 

 

 

10,100,000

 

Juniper Landscaping of Florida, LLC

 

12/22/2021

 

 

Personal, Food and Miscellaneous Services

 

 

11.17

%

 

1M L+950

 

 

 

13,722,750

 

 

 

13,504,645

 

 

 

13,722,750

 

K2 Pure Solutions NoCal, L.P.

 

02/19/2021

 

 

Chemicals, Plastics and Rubber

 

 

10.65

%

 

1M L+900

 

 

 

14,522,529

 

 

 

14,298,884

 

 

 

14,522,529

 

Ox Two, LLC

 

02/27/2023

 

 

Building Materials

 

 

12.00

%

 

P+725

 

 

 

22,500,000

 

 

 

22,059,559

 

 

 

22,050,000

 

Ox Two, LLC (Revolver)

 

02/27/2023

 

 

Building Materials

 

 

12.00

%

 

P+725

 

 

 

500,000

 

 

 

500,000

 

 

 

500,000

 

Ox Two, LLC (Revolver) (7)

 

02/27/2023

 

 

Building Materials

 

 

 

 

 

 

 

 

2,000,000

 

 

 

 

 

 

 

SFP Holding, Inc.

 

09/01/2022

 

 

Buildings and Real Estate

 

 

8.19

%

 

3M L+625

 

 

 

20,581,250

 

 

 

20,270,628

 

 

 

20,581,250

 

SFP Holding, Inc. (7)

 

09/01/2022

 

 

Buildings and Real Estate

 

 

 

 

 

 

 

 

1,875,000

 

 

 

 

 

 

 

SFP Holding, Inc. (Revolver) (7)

 

09/01/2022

 

 

Buildings and Real Estate

 

 

 

 

 

 

 

 

2,500,000

 

 

 

 

 

 

 

Triad Manufacturing, Inc.

 

12/28/2020

 

 

Manufacturing / Basic Industries

 

 

13.13

%

 

1M L+1,125

 

 

 

23,718,379

 

 

 

23,419,360

 

 

 

23,599,787

 

US Med Acquisition, Inc.

 

08/13/2021

 

 

Healthcare, Education and Childcare

 

 

11.31

%

 

1M L+900

 

 

 

8,520,313

 

 

 

8,520,313

 

 

 

8,094,297

 

Whitney, Bradley & Brown, Inc.

 

10/18/2022

 

 

Aerospace and Defense

 

 

10.89

%

 

1M L+900

 

 

 

19,402,500

 

 

 

19,042,032

 

 

 

19,208,475

 

Whitney, Bradley & Brown, Inc. (Revolver)

 

10/18/2022

 

 

Aerospace and Defense

 

 

10.89

%

 

1M L+900

 

 

 

550,000

 

 

 

550,000

 

 

 

544,500

 

Whitney, Bradley & Brown, Inc. (Revolver) (7)

 

10/18/2022

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

916,667

 

 

 

 

 

 

(9,167

)

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

273,399,274

 

 

 

276,458,669

 

Second Lien Secured Debt—57.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balboa Capital Corporation (11)

 

03/04/2022

 

 

Financial Services

 

 

13.75

%

 

 

 

 

 

28,500,000

 

 

 

28,306,638

 

 

 

28,500,000

 

Condor Borrower, LLC

 

04/25/2025

 

 

Business Services

 

 

10.51

%

 

3M L+875

 

 

 

12,500,000

 

 

 

12,260,065

 

 

 

12,500,000

 

DecoPac, Inc.

 

03/31/2025

 

 

Beverage, Food and Tobacco

 

 

10.56

%

 

3M L+825

 

 

 

23,024,259

 

 

 

22,585,242

 

 

 

23,024,259

 

Howard Berger Co. LLC

 

09/30/2020

 

 

Distribution

 

 

12.31

%

 

3M L+1,000

 

 

 

44,062,500

 

 

 

42,823,514

 

 

 

41,859,375

 

 

 

 

 

 

 

 

 

 

(PIK 5.05

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Infogroup, Inc.

 

04/03/2024

 

 

Other Media

 

 

10.94

%

 

3M L+925

 

 

 

20,400,000

 

 

 

20,033,258

 

 

 

20,094,000

 

Intermediate Transportation 100, LLC (5)

 

03/01/2019

 

 

Cargo Transport

 

 

11.00

%

 

 

 

 

 

455,974

 

 

 

388,125

 

 

 

455,974