pnnt-10q_20181231.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, 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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes     No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No  

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of February 7, 2019 was 68,027,537.

 

 


 

PENNANTPARK INVESTMENT CORPORATION

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

TABLE OF CONTENTS

 

 

 

 

 

PART I. CONSOLIDATED FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Consolidated Financial Statements

 

 

 

 

 

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

 

4

 

 

 

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

 

5

 

 

 

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

 

6

 

 

 

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

 

7

 

 

 

Consolidated Schedules of Investments as of December 31, 2018 (unaudited) and September 30, 2018

 

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

 

34

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

Item 1. Legal Proceedings

 

35

 

 

 

Item 1A. Risk Factors

 

35

 

 

 

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

 

36

 

 

 

Item 3. Defaults Upon Senior Securities

 

36

 

 

 

Item 4. Mine Safety Disclosures

 

36

 

 

 

Item 5. Other Information

 

36

 

 

 

Item 6. Exhibits

 

37

 

 

 

SIGNATURES

 

38

 

 

2


 

PART I—CONSOLIDATED FINANCIAL INFORMATION

 

 

We are filing this Quarterly Report on Form 10-Q, or the Report, in compliance with Rule 13a-13 as promulgated by the Securities and Exchange Commission, or the SEC, under the Securities Exchange Act of 1934, as amended, or the Exchange Act. In this Report, except where context suggest otherwise, the terms “Company,” “we,” “our” or “us” refer to PennantPark Investment Corporation and its consolidated subsidiaries; “PennantPark Investment” refers to only PennantPark Investment Corporation; “our SBIC 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; “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, our investments and our business 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, 2018

 

 

September 30, 2018

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost—$987,929,505 and $896,720,950, respectively)

 

$

989,515,879

 

 

$

905,271,258

 

Non-controlled, affiliated investments (cost—$74,369,962 and $91,520,908, respectively)

 

 

49,057,619

 

 

 

78,078,331

 

Controlled, affiliated investments (cost—$261,311,677 and $255,574,317, respectively)

 

 

152,880,313

 

 

 

148,735,885

 

Total of investments (cost—$1,323,611,144 and $1,243,816,175, respectively)

 

 

1,191,453,811

 

 

 

1,132,085,474

 

Cash and cash equivalents (cost—$24,657,870 and $19,543,625, respectively)

 

 

24,653,889

 

 

 

19,506,154

 

Interest receivable

 

 

5,506,564

 

 

 

7,606,964

 

Prepaid expenses and other assets

 

 

152,544

 

 

 

920,235

 

Total assets

 

 

1,221,766,808

 

 

 

1,160,118,827

 

Liabilities

 

 

 

 

 

 

 

 

Distributions payable

 

 

12,244,957

 

 

 

12,429,712

 

Payable for investments purchased

 

 

18,172,125

 

 

 

 

Credit Facility payable (cost—$174,136,000 and $80,520,000, respectively) (See Notes 5 and 10)

 

 

167,088,178

 

 

 

77,645,830

 

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

 

 

249,430,000

 

 

 

251,322,500

 

SBA debentures payable, net (par—$150,000,000 and $180,000,000, respectively) (See Notes 5 and 10)

 

 

145,789,777

 

 

 

175,373,229

 

Base management fee payable, net (See Note 3)

 

 

4,419,262

 

 

 

4,086,831

 

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

 

 

2,667,270

 

 

 

2,964,265

 

Interest payable on debt

 

 

5,007,094

 

 

 

6,576,393

 

Accrued other expenses

 

 

1,007,040

 

 

 

818,172

 

Total liabilities

 

 

605,825,703

 

 

 

531,216,932

 

Commitments and contingencies (See Note 11)

 

 

 

 

 

 

 

 

Net assets

 

 

 

 

 

 

 

 

Common stock, 68,027,537 and 69,053,958 shares issued and outstanding, respectively

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

 

 

68,028

 

 

 

69,054

 

Paid-in capital in excess of par value

 

 

796,236,224

 

 

 

803,729,220

 

Undistributed net investment income

 

 

6,333,033

 

 

 

6,003,360

 

Accumulated net realized loss on investments

 

 

(62,157,643

)

 

 

(70,687,629

)

Net unrealized depreciation on investments

 

 

(132,156,359

)

 

 

(111,763,780

)

Net unrealized depreciation on debt

 

 

7,617,822

 

 

 

1,551,670

 

Total net assets

 

$

615,941,105

 

 

$

628,901,895

 

Total liabilities and net assets

 

$

1,221,766,808

 

 

$

1,160,118,827

 

Net asset value per share

 

$

9.05

 

 

$

9.11

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

4


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

Three Months Ended December 31,

 

 

 

2018

 

 

2017

 

Investment income:

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

Interest

 

$

23,508,581

 

 

$

21,383,219

 

Payment in kind

 

 

1,246,016

 

 

 

1,284,909

 

Other income

 

 

618,071

 

 

 

1,586,642

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

Interest

 

 

105,105

 

 

 

1,215,834

 

Payment in kind

 

 

108,625

 

 

 

1,573,306

 

From controlled, affiliated investments:

 

 

 

 

 

 

 

 

Interest

 

 

1,788,603

 

 

 

480,430

 

Payment in kind

 

 

5,000

 

 

 

1,144,085

 

Total investment income

 

 

27,380,001

 

 

 

28,668,425

 

Expenses:

 

 

 

 

 

 

 

 

Base management fee (See Note 3)

 

 

4,419,262

 

 

 

5,735,137

 

Performance-based incentive fee (See Note 3)

 

 

2,667,270

 

 

 

3,185,204

 

Interest and expenses on debt (See Note 10)

 

 

6,278,847

 

 

 

5,857,378

 

Administrative services expenses (See Note 3)

 

 

521,625

 

 

 

521,625

 

Other general and administrative expenses

 

 

618,367

 

 

 

628,290

 

Expenses before Management Fees waiver and provision for taxes

 

 

14,505,371

 

 

 

15,927,634

 

Management Fees waiver (See Note 3)

 

 

 

 

 

(1,427,253

)

Provision for taxes

 

 

300,000

 

 

 

 

Net expenses

 

 

14,805,371

 

 

 

14,500,381

 

Net investment income

 

 

12,574,630

 

 

 

14,168,044

 

Realized and unrealized loss on investments and debt:

 

 

 

 

 

 

 

 

Net realized gain on investments on:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

3,737,919

 

 

 

1,793,043

 

Non-controlled and controlled, affiliated investments

 

 

4,792,067

 

 

 

1,980,440

 

Net realized gain on investments

 

 

8,529,986

 

 

 

3,773,483

 

Net change in unrealized depreciation on:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(6,929,882

)

 

 

1,738,065

 

Non-controlled and controlled, affiliated investments

 

 

(13,462,697

)

 

 

(8,510,961

)

Debt depreciation (See Notes 5 and 10)

 

 

6,066,152

 

 

 

1,126,766

 

Net change in unrealized depreciation on investments and debt

 

 

(14,326,427

)

 

 

(5,646,130

)

Net realized and unrealized loss from investments and debt

 

 

(5,796,441

)

 

 

(1,872,647

)

Net increase in net assets resulting from operations

 

$

6,778,189

 

 

$

12,295,397

 

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

 

$

0.10

 

 

$

0.18

 

Net investment income per common share

 

$

0.18

 

 

$

0.20

 

 

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,

 

 

 

2018

 

 

2017

 

Net increase in net assets resulting from operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

12,574,630

 

 

$

14,168,044

 

Net realized gain on investments

 

 

8,529,986

 

 

 

3,773,483

 

Net change in unrealized depreciation on investments

 

 

(20,392,579

)

 

 

(6,772,896

)

Net change in unrealized depreciation on debt

 

 

6,066,152

 

 

 

1,126,766

 

Net increase in net assets resulting from operations

 

 

6,778,189

 

 

 

12,295,397

 

Distributions to stockholders:

 

 

(12,244,957

)

 

 

(12,790,950

)

Capital transactions:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(7,494,022

)

 

 

 

Net decrease in net assets

 

 

(12,960,790

)

 

 

(495,553

)

Net assets:

 

 

 

 

 

 

 

 

Beginning of period

 

 

628,901,895

 

 

 

646,808,471

 

End of period

 

$

615,941,105

 

 

$

646,312,918

 

Undistributed net investment income, at end of period

 

$

6,333,033

 

 

$

4,710,289

 

Capital share activity:

 

 

 

 

 

 

 

 

Shares of common stock repurchased

 

 

(1,026,421

)

 

 

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

6


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

Three Months Ended December 31,

 

 

 

2018

 

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

6,778,189

 

 

$

12,295,397

 

Adjustments to reconcile net increase in net assets resulting from

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

 

 

 

 

 

 

 

 

Net change in net unrealized depreciation on investments

 

 

20,392,579

 

 

 

6,772,896

 

Net change in unrealized depreciation on debt

 

 

(6,066,152

)

 

 

(1,126,766

)

Net realized gain on investments

 

 

(8,529,986

)

 

 

(3,773,483

)

Net accretion of discount and amortization of premium

 

 

(729,769

)

 

 

(239,321

)

Purchases of investments

 

 

(194,455,970

)

 

 

(138,433,423

)

Payment-in-kind income

 

 

(1,922,358

)

 

 

(3,706,405

)

Proceeds from dispositions of investments

 

 

125,791,017

 

 

 

192,303,018

 

Amortization of deferred financing costs

 

 

416,548

 

 

 

375,065

 

Decrease (increase) in interest receivable

 

 

2,100,400

 

 

 

(1,852,834

)

Decrease in prepaid expenses and other assets

 

 

767,691

 

 

 

1,529,740

 

Increase (decrease) in payable for investments purchased

 

 

18,172,125

 

 

 

(1,014,000

)

Decrease in interest payable on debt

 

 

(1,569,299

)

 

 

(1,369,723

)

Increase (decrease) in base management fee payable, net

 

 

332,431

 

 

 

(27,721

)

(Decrease) increase in performance-based incentive fee payable, net

 

 

(296,995

)

 

 

405,565

 

Increase in accrued other expenses

 

 

188,868

 

 

 

250,382

 

Net cash (used in) provided by operating activities

 

 

(38,630,681

)

 

 

62,388,387

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(7,494,022

)

 

 

 

Distributions paid to stockholders

 

 

(12,429,712

)

 

 

(12,790,950

)

Repayments under SBA debentures

 

 

(30,000,000

)

 

 

(15,000,000

)

Borrowings under Credit Facility

 

 

217,000,000

 

 

 

91,000,000

 

Repayments under Credit Facility

 

 

(123,384,000

)

 

 

(91,000,000

)

Net cash provided by (used in) financing activities

 

 

43,692,266

 

 

 

(27,790,950

)

Net increase in cash equivalents

 

 

5,061,585

 

 

 

34,597,437

 

Effect of exchange rate changes on cash

 

 

86,150

 

 

 

33,170

 

Cash and cash equivalents, beginning of period

 

 

19,506,154

 

 

 

38,202,068

 

Cash and cash equivalents, end of period

 

$

24,653,889

 

 

$

72,832,675

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

7,431,597

 

 

$

6,852,037

 

Taxes paid

 

$

3,617

 

 

$

 

Non-cash exchanges and conversions

 

$

12,697,510

 

 

$

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

DECEMBER 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—160.7% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—78.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allied America, Inc.

 

08/08/2022

 

 

Business Services

 

 

9.81

%

 

3M L+700

 

 

 

21,358,192

 

 

$

21,057,856

 

 

$

21,384,889

 

Allied America, Inc. (Revolver) (7)

 

08/08/2022

 

 

Business Services

 

 

 

 

 

 

 

 

2,000,000

 

 

 

 

 

 

 

American Insulated Glass, LLC

 

12/21/2023

 

 

Building Materials

 

 

7.98

%

 

3M L+550

 

 

 

31,200,000

 

 

 

30,580,416

 

 

 

30,576,000

 

American Insulated Glass, LLC (7)

 

12/21/2023

 

 

Building Materials

 

 

 

 

 

 

 

 

1,350,649

 

 

 

 

 

 

 

Bazaarvoice, Inc.

 

02/01/2024

 

 

Printing and Publishing

 

 

8.10

%

 

1M L+575

 

 

 

14,887,500

 

 

 

14,749,371

 

 

 

14,738,625

 

Bottom Line Systems, LLC

 

02/13/2023

 

 

Healthcare, Education and Childcare

 

 

10.02

%

 

1M L+750

 

 

 

19,583,330

 

 

 

19,354,443

 

 

 

19,583,330

 

Broder Bros., Co.

 

12/02/2022

 

 

Consumer Products

 

 

11.31

%

 

3M L+850

 

 

 

31,515,152

 

 

 

31,516,838

 

 

 

31,515,152

 

Cano Health, LLC

 

12/23/2021

 

 

Healthcare, Education and Childcare

 

 

8.58

%

 

1M L+625

 

 

 

37,358,331

 

 

 

36,817,568

 

 

 

37,358,331

 

DermaRite Industries LLC

 

03/03/2022

 

 

Manufacturing / Basic Industries

 

 

9.52

%

 

1M L+700

 

 

 

9,825,000

 

 

 

9,720,195

 

 

 

9,557,457

 

Deva Holdings, Inc.

 

10/31/2023

 

 

Consumer Products

 

 

8.77

%

 

3M L+625

 

 

 

4,520,316

 

 

 

4,446,372

 

 

 

4,520,316

 

Deva Holdings, Inc. (7)

 

10/31/2022

 

 

Consumer Products

 

 

 

 

 

 

 

 

385,000

 

 

 

 

 

 

 

Hollander Sleep Products, LLC

 

06/09/2023

 

 

Consumer Products

 

 

10.80

%

 

3M L+800

 

 

 

19,713,838

 

 

 

19,400,776

 

 

 

18,728,146

 

Impact Group, LLC

 

06/27/2023

 

 

Personal, Food and Miscellaneous Services

 

 

9.30

%

 

3M L+650

 

 

 

27,410,052

 

 

 

27,221,921

 

 

 

27,273,002

 

Juniper Landscaping of Florida, LLC

 

12/22/2021

 

 

Personal, Food and Miscellaneous Services

 

 

11.85

%

 

1M L+950

 

 

 

14,171,119

 

 

 

13,977,311

 

 

 

14,171,119

 

K2 Pure Solutions NoCal, L.P.

 

12/20/2023

 

 

Chemicals, Plastics and Rubber

 

 

7.84

%

 

1M L+525

 

 

 

27,133,333

 

 

 

26,727,301

 

 

 

26,726,333

 

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

 

12/20/2023

 

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

1,938,095

 

 

 

 

 

 

 

Ox Two, LLC

 

02/27/2023

 

 

Building Materials

 

 

8.77

%

 

1M L+625

 

 

 

22,110,425

 

 

 

21,729,644

 

 

 

22,110,425

 

Ox Two, LLC (Revolver)

 

02/27/2023

 

 

Building Materials

 

 

12.75

%

 

P+725

 

 

 

750,000

 

 

 

750,000

 

 

 

750,000

 

Ox Two, LLC (Revolver) (7)

 

02/27/2023

 

 

Building Materials

 

 

 

 

 

 

 

 

1,750,000

 

 

 

 

 

 

 

Peninsula Pacific Entertainment LLC

 

11/13/2024

 

 

Hotels, Motels, Inns and Gaming

 

 

9.71

%

 

3M L+725

 

 

 

7,200,000

 

 

 

7,183,125

 

 

 

7,128,000

 

Peninsula Pacific Entertainment LLC (7)

 

11/13/2024

 

 

Hotels, Motels, Inns and Gaming

 

 

 

 

 

 

 

 

800,000

 

 

 

 

 

 

(8,000

)

Pestell Minerals and Ingredients Inc. (11)

 

06/01/2023

 

 

Beverage, Food and Tobacco

 

 

7.68

%

 

1M L+525

 

 

 

5,500,000

 

 

 

5,445,567

 

 

 

5,422,576

 

Provation Medical, Inc.

 

03/11/2024

 

 

Electronics

 

 

9.42

%

 

1M L+700

 

 

 

27,000,000

 

 

 

26,396,785

 

 

 

26,392,500

 

Questex, LLC

 

09/09/2024

 

 

Media

 

 

9.02

%

 

3M L+625

 

 

 

22,443,750

 

 

 

22,016,571

 

 

 

21,994,875

 

Questex, LLC (Revolver)

 

09/09/2024

 

 

Media

 

 

9.02

%

 

3M L+625

 

 

 

598,404

 

 

 

598,404

 

 

 

586,436

 

Questex, LLC (Revolver) (7)

 

09/09/2024

 

 

Media

 

 

 

 

 

 

 

 

2,992,021

 

 

 

 

 

 

(59,841

)

Research Horizons, LLC

 

06/28/2022

 

 

Media

 

 

8.60

%

 

1M L+625

 

 

 

22,359,375

 

 

 

21,955,122

 

 

 

21,800,390

 

Research Horizons, LLC (7)

 

06/28/2022

 

 

Media

 

 

 

 

 

 

 

 

9,121,622

 

 

 

 

 

 

(228,041

)

Research Horizons, LLC (Revolver)

 

06/28/2022

 

 

Media

 

 

8.60

%

 

1M L+625

 

 

 

810,811

 

 

 

810,811

 

 

 

790,541

 

Research Horizons, LLC (Revolver) (7)

 

06/28/2022

 

 

Media

 

 

 

 

 

 

 

 

3,243,243

 

 

 

 

 

 

(81,081

)

SFP Holding, Inc.

 

09/01/2022

 

 

Buildings and Real Estate

 

 

9.04

%

 

3M L+625

 

 

 

20,227,284

 

 

 

19,982,458

 

 

 

20,227,284

 

SFP Holding, Inc. (7)

 

09/01/2022

 

 

Buildings and Real Estate

 

 

 

 

 

 

 

 

5,506,214

 

 

 

 

 

 

 

SFP Holding, Inc. (Revolver)

 

09/01/2022

 

 

Buildings and Real Estate

 

 

9.04

%

 

3M L+625

 

 

 

833,333

 

 

 

833,333

 

 

 

833,333

 

SFP Holding, Inc. (Revolver) (7)

 

09/01/2022

 

 

Buildings and Real Estate

 

 

 

 

 

 

 

 

1,666,667

 

 

 

 

 

 

 

Triad Manufacturing, Inc.

 

12/28/2020

 

 

Manufacturing / Basic Industries

 

 

15.77

%

 

3M L+1,325

 

 

 

22,099,213

 

 

 

21,885,003

 

 

 

21,325,740

 

US Dominion, Inc.

 

07/15/2024

 

 

Electronics

 

 

9.28

%

 

3M L+675

 

 

 

29,850,000

 

 

 

29,358,834

 

 

 

29,850,000

 

US Dominion, Inc. (Revolver) (7)

 

07/15/2024

 

 

Electronics

 

 

 

 

 

 

 

 

7,500,000

 

 

 

 

 

 

 

US Med Acquisition, Inc.

 

08/13/2021

 

 

Healthcare, Education and Childcare

 

 

11.80

%

 

1M L+900

 

 

 

8,454,688

 

 

 

8,454,688

 

 

 

8,031,952

 

Walker Edison Furniture Company LLC

 

09/26/2024

 

 

Home and Office Furnishings

 

 

8.88

%

 

3M L+650

 

 

 

22,500,000

 

 

 

22,065,139

 

 

 

22,050,000

 

Whitney, Bradley & Brown, Inc.

 

10/18/2022

 

 

Aerospace and Defense

 

 

11.53

%

 

1M L+900

 

 

 

19,183,125

 

 

 

18,874,578

 

 

 

19,183,125

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

483,910,430

 

 

 

484,232,914

 

Second Lien Secured Debt—65.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condor Borrower, LLC

 

04/25/2025

 

 

Business Services

 

 

11.28

%

 

3M L+875

 

 

 

12,500,000

 

 

 

12,277,984

 

 

 

12,437,500

 

Confie Seguros Holding Co.

 

10/31/2025

 

 

Insurance

 

 

11.24

%

 

3M L+850

 

 

 

14,500,000

 

 

 

14,211,122

 

 

 

14,040,785

 

DecoPac, Inc.

 

03/31/2025

 

 

Beverage, Food and Tobacco

 

 

11.05

%

 

3M L+825

 

 

 

23,024,259

 

 

 

22,619,598

 

 

 

23,024,259

 

Halo Buyer, Inc.

 

07/06/2026

 

 

Consumer Products

 

 

10.77

%

 

1M L+825

 

 

 

45,000,000

 

 

 

44,337,844

 

 

 

44,325,000

 

Infogroup, Inc.

 

04/03/2024

 

 

Other Media

 

 

12.05

%

 

3M L+925

 

 

 

20,400,000

 

 

 

20,068,042

 

 

 

20,400,000

 

Integrity Marketing Partners, LLC

 

11/30/2026

 

 

Insurance

 

 

11.21

%

 

3M L+850

 

 

 

20,769,231

 

 

 

20,474,544

 

 

 

20,561,538

 

Integrity Marketing Partners, LLC (7)

 

11/30/2026

 

 

Insurance

 

 

 

 

 

 

 

 

2,373,626

 

 

 

 

 

 

(23,736

)

Intermediate Transportation 100, LLC (5)

 

03/01/2019

 

 

Cargo Transport

 

 

11.00

%

 

 

 

 

 

481,052

 

 

 

468,352