UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
For the quarterly period ended March 31, 2007 |
|
OR |
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period to
Commission File No. 000-50697
ARES CAPITAL CORPORATION
(Exact name of Registrant as specified in its charter)
Maryland |
|
33-1089684 |
(State or other jurisdiction of |
|
(I.R.S. Employer |
incorporation or organization) |
|
Identification Number) |
280
Park Avenue, 22nd Floor,
Building East, New York, NY 10017
(Address of principal executive
office) (Zip Code)
(212)
750-7300
(Registrants telephone number,
including area code)
N/A
(Former name, former address and former
fiscal year, if changed since last report)
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 x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer o |
|
Accelerated filer x |
|
Non-accelerated filer o |
Indicate by check mark
whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).
Yes o No x
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.
Class |
|
Outstanding at May 9, 2007 |
Common stock, $0.001 par value |
|
69,486,220 |
ARES CAPITAL CORPORATION
INDEX
2
PART I FINANCIAL INFORMATION
ARES CAPITAL CORPORATION AND SUBSIDIARIES
|
|
As of |
|
||||
|
|
March 31, 2007 |
|
December 31, 2006 |
|
||
|
|
(unaudited) |
|
|
|
||
ASSETS |
|
|
|
|
|
||
|
|
|
|
|
|
||
Investments at fair value (amortized cost of $1,439,399,109 and $1,245,758,040, respectively) |
|
|
|
|
|
||
Non-control/non-affiliate investments |
|
$ |
1,186,483,547 |
|
$ |
991,529,464 |
|
Non-control affiliated company investments |
|
247,264,574 |
|
244,292,372 |
|
||
Total investments at fair value |
|
1,433,748,121 |
|
1,235,821,836 |
|
||
Cash and cash equivalents |
|
54,333,411 |
|
91,538,878 |
|
||
Receivable for open trades |
|
1,222,285 |
|
1,026,053 |
|
||
Interest receivable |
|
14,105,571 |
|
10,121,104 |
|
||
Other assets |
|
8,870,325 |
|
9,483,083 |
|
||
|
|
|
|
|
|
||
Total assets |
|
$ |
1,512,279,713 |
|
$ |
1,347,990,954 |
|
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
|
||
|
|
|
|
|
|
||
Debt |
|
$ |
670,000,000 |
|
$ |
482,000,000 |
|
Payable for open trades |
|
|
|
60,000,000 |
|
||
Accounts payable and accrued expenses |
|
1,863,910 |
|
2,027,948 |
|
||
Management and incentive fees payable |
|
9,844,161 |
|
12,485,016 |
|
||
Interest and facility fees payable |
|
2,809,253 |
|
2,044,586 |
|
||
Total liabilities |
|
684,517,324 |
|
558,557,550 |
|
||
|
|
|
|
|
|
||
Commitments and contingencies (Note 6) |
|
|
|
|
|
||
|
|
|
|
|
|
||
STOCKHOLDERS EQUITY |
|
|
|
|
|
||
|
|
|
|
|
|
||
Common stock, par value $.001 per share, 100,000,000 common shares authorized, 53,961,220 and 52,036,527 common shares issued and outstanding, respectively |
|
53,961 |
|
52,037 |
|
||
Capital in excess of par value |
|
822,000,330 |
|
785,192,573 |
|
||
Accumulated undistributed net investment income |
|
3,913,272 |
|
7,038,469 |
|
||
Accumulated net realized gains on sale of investments |
|
7,445,814 |
|
7,086,529 |
|
||
Net unrealized depreciation on investments |
|
(5,650,988 |
) |
(9,936,204 |
) |
||
Total stockholders equity |
|
827,762,389 |
|
789,433,404 |
|
||
|
|
|
|
|
|
||
Total liabilities and stockholders equity |
|
$ |
1,512,279,713 |
|
$ |
1,347,990,954 |
|
|
|
|
|
|
|
||
NET ASSETS PER SHARE |
|
$ |
15.34 |
|
$ |
15.17 |
|
See accompanying notes to consolidated financial statements.
3
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
For the Three |
|
For the Three |
|
||
|
|
Months Ended |
|
Months Ended |
|
||
|
|
March 31, 2007 |
|
March 31, 2006 |
|
||
|
|
(unaudited) |
|
(unaudited) |
|
||
INVESTMENT INCOME: |
|
|
|
|
|
||
From non-control/non-affiliate investments: |
|
|
|
|
|
||
Interest from investments |
|
$ |
29,976,327 |
|
$ |
15,051,133 |
|
Capital structuring service fees |
|
4,284,547 |
|
1,746,205 |
|
||
Interest from cash & cash equivalents |
|
820,833 |
|
231,229 |
|
||
Dividend income |
|
375,000 |
|
|
|
||
Other income |
|
152,152 |
|
42,543 |
|
||
Total invetment income from non-control/non-affiliate investments |
|
35,608,859 |
|
17,071,110 |
|
||
|
|
|
|
|
|
||
From non-control affiliated company investments: |
|
|
|
|
|
||
Interest from investments |
|
3,840,254 |
|
2,476,932 |
|
||
Capital structuring service fees |
|
37,500 |
|
583,810 |
|
||
Other income |
|
228,410 |
|
59,453 |
|
||
Total investment income from non-control affiliated company investments |
|
4,106,164 |
|
3,120,195 |
|
||
|
|
|
|
|
|
||
Total investment income |
|
39,715,023 |
|
20,191,305 |
|
||
|
|
|
|
|
|
||
EXPENSES: |
|
|
|
|
|
||
Interest and credit facility fees |
|
8,549,315 |
|
1,729,620 |
|
||
Base management fees |
|
5,089,497 |
|
2,543,659 |
|
||
Incentive management fees |
|
4,754,664 |
|
2,922,884 |
|
||
Professional fees |
|
965,813 |
|
471,451 |
|
||
Insurance |
|
264,818 |
|
188,101 |
|
||
Administrative |
|
210,357 |
|
177,537 |
|
||
Depreciation |
|
101,177 |
|
|
|
||
Directors fees |
|
64,750 |
|
63,250 |
|
||
Interest to the Investment Adviser |
|
|
|
25,879 |
|
||
Other |
|
760,140 |
|
168,509 |
|
||
Total expenses |
|
20,760,531 |
|
8,290,890 |
|
||
|
|
|
|
|
|
||
NET INVESTMENT INCOME BEFORE INCOME TAXES |
|
18,954,492 |
|
11,900,415 |
|
||
|
|
|
|
|
|
||
Income tax expense, including excise tax |
|
10,166 |
|
208,880 |
|
||
|
|
|
|
|
|
||
NET INVESTMENT INCOME |
|
18,944,326 |
|
11,691,535 |
|
||
|
|
|
|
|
|
||
REALIZED AND UNREALIZED NET GAINS ON INVESTMENTS: |
|
|
|
|
|
||
Net realized gains (losses): |
|
|
|
|
|
||
Net realized gains (losses) from non-control/non-affiliate investment transactions |
|
269,285 |
|
563,603 |
|
||
Net realized gains (losses)from non-control affiliated company investment transactions |
|
90,000 |
|
47,283 |
|
||
Net realized gains (losses) from investment transactions |
|
359,285 |
|
610,886 |
|
||
Net unrealized gains (losses): |
|
|
|
|
|
||
Net unrealized gains (losses) from non-control/non-affiliate investment transactions |
|
(2,092,412 |
) |
3,985,530 |
|
||
Net unrealized gains (losses) from non-control affiliated company investment transactions |
|
6,377,628 |
|
(2,444,918 |
) |
||
Net unrealized gains (losses) from investment transactions |
|
4,285,216 |
|
1,540,612 |
|
||
|
|
|
|
|
|
||
Net realized and unrealized gains (losses) from investment transactions |
|
4,644,501 |
|
2,151,498 |
|
||
|
|
|
|
|
|
||
NET INCREASE IN STOCKHOLDERS EQUITY RESULTING FROM OPERATIONS |
|
$ |
23,588,827 |
|
$ |
13,843,033 |
|
|
|
|
|
|
|
||
BASIC AND DILUTED EARNINGS PER COMMON SHARE (see Note 4) |
|
$ |
0.44 |
|
$ |
0.36 |
|
|
|
|
|
|
|
||
WEIGHTED AVERAGE SHARES
OF COMMON STOCK OUTSTANDING |
|
53,178,927 |
|
37,988,700 |
|
See accompanying notes to consolidated financial statements.
4
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2007
|
|
|
|
|
|
|
|
Initial |
|
|
|
|
|
|
|
Percentage |
|
|||
|
|
|
|
|
|
|
|
Acquisition |
|
Amortized |
|
|
|
Fair Value |
|
of Net |
|
|||
Company {1} |
|
Industry |
|
Investment |
|
Interest {17} |
|
Date |
|
Cost |
|
Fair Value |
|
Per Unit |
|
Assets |
|
|||
Healthcare - Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
American Renal Associates, Inc. |
|
Dialysis provider |
|
Senior secured loan ($2,688,524 par due 12/2010) |
|
9.12% (Libor+ 3.75%/Q) |
|
12/14/05 |
|
$ |
2,688,524 |
|
$ |
2,688,524 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($196,721 par due 12/2010) |
|
10.50% (Base Rate + 2.25%/D) |
|
12/14/05 |
|
196,721 |
|
196,721 |
|
$ |
1.00 |
{3} |
|
|
||
|
|
|
|
Senior secured loan ($5,788,525 par due 12/2011) |
|
9.62% (Libor + 4.25%/Q) |
|
12/14/05 |
|
5,788,525 |
|
5,788,525 |
|
$ |
1.00 |
{3} |
|
|
||
|
|
|
|
Senior secured loan ($54,098 par due 12/2011) |
|
11.00% (Base Rate + 2.75%/D) |
|
12/14/05 |
|
54,098 |
|
54,098 |
|
$ |
1.00 |
{3} |
|
|
||
|
|
|
|
Senior secured loan ($393,741 par due 12/2011) |
|
12.37% (Libor + 7.00%/S) |
|
12/14/05 |
|
393,741 |
|
393,741 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Senior secured loan ($261,997 par due 12/2011) |
|
12.37 (Libor + 7.00%/S) |
|
12/14/05 |
|
261,997 |
|
261,997 |
|
$ |
1.00 |
{3} |
|
|
||
|
|
|
|
Senior secured loan ($3,937,406 par due 12/2011) |
|
12.36% (Libor + 7.00% /Q) |
|
12/14/05 |
|
3,937,406 |
|
3,937,406 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Senior secured loan ($2,619,971 par due 12/2011) |
|
12.36% (Libor + 7.00% /Q) |
|
12/14/05 |
|
2,619,971 |
|
2,619,971 |
|
$ |
1.00 |
{3} |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Capella Healthcare, Inc. |
|
Acute care hospital operator |
|
Junior secured loan ($1,000,000 par due 11/2013) |
|
13.25% (Base Rate + 5.00%/D) |
|
12/1/05 |
|
1,000,000 |
|
1,000,000 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Junior secured loan ($30,000,000 par due 11/2013) |
|
13.25% (Base Rate + 5.00%/D) |
|
12/1/05 |
|
30,000,000 |
|
30,000,000 |
|
$ |
1.00 |
{2} |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
DSI Renal, Inc. |
|
Dialysis provider |
|
Senior subordinated note ($55,215,573 par due 4/2014) |
|
12.00% Cash, 2.00% PIK |
|
4/4/06 |
|
55,215,573 |
|
55,215,573 |
|
$ |
1.00 |
{4} |
|
|
||
|
|
|
|
Senior subordinated note ($11,105,376 par due 4/2014) |
|
12.00% Cash, 2.00% PIK |
|
4/4/06 |
|
11,105,376 |
|
11,105,376 |
|
$ |
1.00 |
{3}{4} |
|
|
||
|
|
|
|
Senior secured revolving loan ($4,000,000 par due 3/2013) |
|
8.38% (Libor + 3.00%/Q) |
|
4/4/06 |
|
4,000,000 |
|
4,000,000 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Senior secured revolving loan ($960,000 par due 3/2013) |
|
8.38% (Libor + 3.00%/Q) |
|
4/4/06 |
|
960,000 |
|
960,000 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Senior secured revolving loan ($1,600,000 par due 3/2013) |
|
8.38% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,600,000 |
|
1,600,000 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Senior secured revolving loan ($2,096,000 par due 3/2013) |
|
10.75% (Base Rate + 2.50%/D) |
|
4/4/06 |
|
2,096,000 |
|
2,096,000 |
|
$ |
1.00 |
|
|
|
||
5
MPBP Holdings, Inc., Cohr Holdings, Inc. and MPBP Acquisition Co., Inc. |
|
Healthcare equipment services |
|
Junior secured loan ($20,000,000 par due 1/2014) |
|
11.61% (Libor + 6.25%/Q) |
|
1/31/07 |
|
20,000,000 |
|
20,000,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Junior secured loan ($12,000,000 par due 1/2014) |
|
11.61% (Libor + 6.25%/Q) |
|
1/31/07 |
|
12,000,000 |
|
12,000,000 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Common stock (50,000 shares) |
|
|
|
1/31/07 |
|
5,000,000 |
|
5,000,000 |
|
$ |
100.00 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OnCURE Medical Corp. |
|
Radiation oncology care provider |
|
Senior subordinated note ($25,758,837 par due 8/2013) |
|
11.00% cash, 1.50% PIK |
|
8/18/06 |
|
25,758,837 |
|
25,758,837 |
|
$ |
1.00 |
{4} |
|
|
|
|
|
|
Senior secured loan ($3,259,375 par due 8/2011) |
|
8.82% (Libor + 3.50%/S) |
|
8/23/06 |
|
3,259,375 |
|
3,259,375 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($696,690 par due 8/2008) |
|
8.82% (Libor + 3.50%/S) |
|
8/23/06 |
|
696,690 |
|
696,690 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Common stock (857,143 shares) |
|
|
|
8/18/06 |
|
3,000,000 |
|
3,000,000 |
|
$ |
3.50 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Parker Group, Inc. {19} |
|
Diversified healthcare services |
|
Senior secured loan ($27,750,000 par due 3/2012) |
|
13.75% (Base Rate + 5.50%/D) |
|
3/1/07 |
|
27,750,000 |
|
27,750,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Triad Laboratory Alliance, LLC |
|
Laboratory services |
|
Senior subordinated note ($14,894,195 par due 12/2012) |
|
12.00% cash, 1.75% PIK |
|
12/21/05 |
|
14,894,195 |
|
14,894,195 |
|
$ |
1.00 |
{4} |
|
|
|
|
|
|
Senior secured loan ($6,912,500 par due 12/2011) |
|
8.60% (Libor + 3.25%/Q) |
|
12/21/05 |
|
6,912,500 |
|
6,912,500 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($2,962,500 par due 12/2011) |
|
8.60% (Libor + 3.25%/Q) |
|
12/21/05 |
|
2,962,500 |
|
2,962,500 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
244,152,029 |
|
244,152,029 |
|
|
|
29.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apogee Retail, LLC |
|
For-profit thrift retailer |
|
Senior secured loan ($65,835,000 par due 3/2012) |
|
10.58%(Libor + 5.25%/S) |
|
3/27/07 |
|
65,835,000 |
|
65,835,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($165,000 par due 3/2012) |
|
10.60% (Libor + 5.25%/Q) |
|
3/27/07 |
|
165,000 |
|
165,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savers, Inc and SAI Acquisition Corporation |
|
For-profit thrift retailer |
|
Senior subordinated note ($28,411,563 par due 8/2014) |
|
10.00% cash, 2.00% PIK |
|
8/8/06 |
|
28,411,563 |
|
28,411,563 |
|
$ |
1.00 |
{2}{4} |
|
|
|
|
|
|
Common stock (1,170,182 shares) |
|
|
|
8/8/06 |
|
4,500,000 |
|
4,500,000 |
|
$ |
3.85 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Things Remembered, Inc. and TRM Holdings Corporation |
|
Personalized gifts retailer |
|
Senior secured loan ($4,776,000 par due 9/2012) |
|
10.07% (Libor + 4.75%/M) |
|
9/28/06 |
|
4,776,000 |
|
4,776,000 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($14,000,000 par due 9/2012) |
|
11.32% (Libor + 6.00%/M) |
|
9/28/06 |
|
14,000,000 |
|
14,000,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($14,000,000 par due 9/2012) |
|
11.32% (Libor + 6.00%/M) |
|
9/28/06 |
|
14,000,000 |
|
14,000,000 |
|
$ |
1.00 |
{2} |
|
|
|
|
|
|
Senior secured loan ($7,200,000 par due 9/2012) |
|
11.32% (Libor + 6.00%/M) |
|
9/28/06 |
|
7,200,000 |
|
7,200,000 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Preferred stock (80 shares) |
|
|
|
9/28/06 |
|
1,800,000 |
|
1,800,000 |
|
$ |
22,500.00 |
{5} |
|
|
|
|
|
|
Common stock (800 shares) |
|
|
|
9/28/06 |
|
200,000 |
|
200,000 |
|
$ |
250.00 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
140,887,563 |
|
140,887,563 |
|
|
|
17.03 |
% |
6
Education |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instituto de Banca y Comercio, Inc. and National College of Business and Technology Company, Inc. |
|
Private school operator |
|
Senior secured revolving loan ($1,500,000 par due 3/2014) |
|
8.32% (Libor + 3.00%/M) |
|
3/15/07 |
|
1,500,000 |
|
1,500,000 |
|
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($64,000,000 par due 3/2014) |
|
10.35% (Libor + 5.00%/Q) |
|
3/15/07 |
|
64,000,000 |
|
64,000,000 |
|
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equinox SMU Partners LLC and SMU Acquisition Corp. {9} {15} {20} |
|
Medical school operator |
|
Senior secured revolving loan ($6,550,000 par due 12/2010) |
|
13.25% (Base Rate + 5.00%/D) |
|
1/26/06 |
|
6,550,000 |
|
6,550,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured revolving loan ($1,032,342 par due 12/2010) |
|
11.36% (Libor + 6.00%/Q) |
|
1/26/06 |
|
1,032,342 |
|
1,032,342 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($4,524,354 par due 12/2010) |
|
11.35% (Libor + 6.00%/Q) |
|
1/26/06 |
|
4,524,354 |
|
4,524,354 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($4,625,646 par due 12/2010) |
|
11.35% (Libor + 6.00%/Q) |
|
1/26/06 |
|
4,625,646 |
|
4,625,646 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($250,000 par due 12/2010) |
|
11.35% (Libor + 6.00%/Q) |
|
1/26/06 |
|
250,000 |
|
250,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($250,000 par due 12/2010) |
|
11.35% (Libor + 6.00%/Q) |
|
1/26/06 |
|
250,000 |
|
250,000 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Limited liability company membership interest (17.39% interest) |
|
|
|
1/25/06 |
|
4,000,000 |
|
4,000,000 |
|
|
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELC Acquisition Corporation |
|
Developer, manufacturer and retailer of educational products |
|
Senior secured loan ($3,085,714 par due 11/2012) |
|
9.13% (Libor + 3.75%/S) |
|
11/30/06 |
|
3,085,714 |
|
3,085,714 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Junior secured loan ($8,333,333 par due 11/2013) |
|
12.35% (Libor + 7.00%/Q) |
|
11/30/06 |
|
8,333,333 |
|
8,333,333 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Finance, LLC |
|
Private school operator |
|
Senior secured note ($18,000,000 par due 12/2012) |
|
11.50% |
|
12/13/05 |
|
18,000,000 |
|
18,000,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured note ($15,000,000 par due 12/2012) |
|
11.50% |
|
12/13/05 |
|
15,000,000 |
|
15,000,000 |
|
$ |
1.00 |
{2} |
|
|
|
|
|
|
|
|
|
|
|
|
131,151,389 |
|
131,151,389 |
|
|
|
15.85 |
% |
7
Printing, Publishing and Media |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canon Communications LLC |
|
Print publications services |
|
Junior secured loan ($7,525,000 par due 11/2011) |
|
12.07% (Libor + 6.75%/M) |
|
5/25/05 |
|
7,525,000 |
|
7,525,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Junior secured loan ($4,250,000 par due 11/2011) |
|
12.07% (Libor + 6.75%/M) |
|
5/25/05 |
|
4,250,000 |
|
4,250,000 |
|
$ |
1.00 |
{2} |
|
|
|
|
|
|
Junior secured loan ($12,000,000 par due 11/2011) |
|
12.07% (Libor + 6.75%/M) |
|
5/25/05 |
|
12,000,000 |
|
12,000,000 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Candy, Inc. {11}{20} |
|
Internet publication provider |
|
Senior secured loan ($12,422,111 par due 5/2009) |
|
10.36% (Libor + 5.00%/S) |
|
5/25/06 |
|
12,889,397 |
|
12,422,111 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($11,577,889 par due 5/2009) |
|
10.36% (Libor + 5.00%/S) |
|
5/25/06 |
|
12,013,418 |
|
11,577,889 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($258,794 par due 5/2009) |
|
10.35% (Libor + 5.00%/Q) |
|
5/25/06 |
|
268,529 |
|
258,794 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($241,206 par due 5/2009) |
|
10.35% (Libor + 5.00%/Q) |
|
5/25/06 |
|
250,280 |
|
241,206 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($64,698 par due 5/2009) |
|
12.25% (Base Rate + 4.00%/D) |
|
5/25/06 |
|
67,132 |
|
64,698 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($60,302 par due 5/2009) |
|
12.25% (Base Rate + 4.00%/D) |
|
5/25/06 |
|
62,570 |
|
60,302 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Common stock (1,250,000 shares) |
|
|
|
5/25/06 |
|
2,375,000 |
|
4,085,000 |
|
$ |
3.27 |
{5} |
|
|
|
|
|
|
Warrants to purchase 1,381,578 shares |
|
|
|
5/25/06 |
|
2,624,998 |
|
4,514,997 |
|
$ |
3.27 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Print Group, Inc. |
|
Printing management services |
|
Senior secured revolving loan ($531,499 par due 3/2012) |
|
10.75% (Base Rate + 2.50%/D) |
|
3/2/06 |
|
531,499 |
|
531,499 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured revolving loan ($798,913 par due 3/2012) |
|
8.82% (Libor + 3.50%/M) |
|
3/2/06 |
|
798,913 |
|
798,913 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($5,295,652 par due 3/2012) |
|
8.85% (Libor + 3.50%/Q) |
|
3/2/06 |
|
5,295,652 |
|
5,295,652 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($273,913 par due 3/2012) |
|
10.75% (Base Rate + 2.50%/D) |
|
3/2/06 |
|
273,913 |
|
273,913 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($5,295,652 par due 3/2012) |
|
8.86% (Libor + 3.50%/Q) |
|
3/2/06 |
|
5,295,652 |
|
5,295,652 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($2,319,368 par due 8/2012) |
|
12.35% (Libor + 7.00%/B) |
|
3/2/06 |
|
2,319,368 |
|
2,319,368 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($419,763 par due 8/2012) |
|
12.35% (Libor + 7.00%/B) |
|
3/2/06 |
|
419,763 |
|
419,763 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($1,932,806 par due 8/2012) |
|
12.36% (Libor + 7.00%/Q) |
|
3/2/06 |
|
1,932,806 |
|
1,932,806 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($349,802 par due 8/2012) |
|
12.36% (Libor + 7.00%/Q) |
|
3/2/06 |
|
349,802 |
|
349,802 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Preferred stock (9,344 shares) |
|
|
|
3/2/06 |
|
2,000,000 |
|
2,000,000 |
|
$ |
214.04 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Teaching Company, LLC and The Teaching Company Holdings, Inc. {18} |
|
Education publications provider |
|
Senior secured loan ($28,000,000 par due 9/2012) |
|
10.50% |
|
9/29/06 |
|
28,000,000 |
|
28,000,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($12,000,000 par due 9/2012) |
|
10.50% |
|
9/29/06 |
|
12,000,000 |
|
12,000,000 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Preferred stock (29,969 shares) |
|
|
|
9/29/06 |
|
2,996,921 |
|
2,996,921 |
|
$ |
100.00 |
{5} |
|
|
|
|
|
|
Common stock (15,393 shares) |
|
|
|
9/29/06 |
|
3,079 |
|
3,079 |
|
$ |
0.20 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
116,543,692 |
|
119,217,365 |
|
|
|
14.41 |
% |
8
Services - Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Residential Services, LLC |
|
Plumbing, heating and air-conditioning services |
|
Senior subordinated note ($8,833,181 par due 9/2013) |
|
12.00% Cash, 3.00% PIK |
|
11/9/06 |
|
8,833,181 |
|
8,833,181 |
|
$ 1.00 |
{2} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Collection Services, Inc. |
|
Collections services |
|
Senior secured loan ($5,242,025 par due 2/2011) |
|
9.57% (Libor + 4.25%/M) |
|
2/2/05 |
|
5,242,025 |
|
4,560,561 |
|
$ 0.87 |
{3} |
|
|
|
|
|
|
Senior secured loan ($1,742,026 par due 8/2011) |
|
11.32% (Libor + 6.00%/M) |
|
2/2/05 |
|
1,742,026 |
|
1,358,781 |
|
$ 0.78 |
{2} |
|
|
|
|
|
|
Senior secured loan ($6,757,974 par due 8/2011) |
|
11.32% (Libor + 6.00%/M) |
|
2/2/05 |
|
6,757,974 |
|
5,271,219 |
|
$ 0.78 |
{3} |
|
|
|
|
|
|
Preferred stock (14,927 shares) |
|
|
|
5/18/06 |
|
169,123 |
|
|
|
$ |
{5} |
|
|
|
|
|
|
Common stock (114,004 shares) |
|
|
|
2/2/05 |
|
295,270 |
|
|
|
$ |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GCA Services Group, Inc. |
|
Custodial services |
|
Senior secured loan ($8,000,000 par due 12/2011) |
|
12.00% |
|
12/15/06 |
|
8,000,000 |
|
8,000,000 |
|
$ 1.00 |
|
|
|
|
|
|
|
Senior secured loan ($30,000,000 par due 12/2011) |
|
12.00% |
|
12/15/06 |
|
30,000,000 |
|
30,000,000 |
|
$ 1.00 |
{2} |
|
|
|
|
|
|
Senior secured loan ($12,000,000 par due 12/2011) |
|
12.00% |
|
12/15/06 |
|
12,000,000 |
|
12,000,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growing Family, Inc. and GFH Holdings, LLC |
|
Photography services |
|
Senior secured loan ($11,937,500 par due 8/2011) |
|
8.36% (Libor + 3.00%/Q) |
|
3/16/07 |
|
11,937,500 |
|
11,937,500 |
|
$ 1.00 |
|
|
|
|
|
|
|
Senior secured loan ($3,591,000 par due 8/2011) |
|
12.36% (Libor + 7.00%/Q) |
|
3/16/07 |
|
3,591,000 |
|
3,591,000 |
|
$ 1.00 |
|
|
|
|
|
|
|
Common stock (552,430 shares) |
|
|
|
3/15/07 |
|
872,286 |
|
872,286 |
|
$ 1.58 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPA Acquisition, LLC |
|
Powersport vehicle auction operator |
|
Senior secured loan ($4,533,333 par due 8/2012) |
|
8.56% (Libor + 3.25%/S) |
|
8/28/06 |
|
4,533,333 |
|
4,533,333 |
|
$ 1.00 |
|
|
|
|
|
|
|
Senior secured loan ($333,333 par due 8/2012) |
|
8.57% (Libor + 3.25%/M) |
|
8/28/06 |
|
333,333 |
|
333,333 |
|
$ 1.00 |
|
|
|
|
|
|
|
Senior secured loan ($91,667 par due 8/2012) |
|
10.25% (Base Rate + 2.00%/D) |
|
8/28/06 |
|
91,667 |
|
91,667 |
|
$ 1.00 |
|
|
|
|
|
|
|
Junior secured loan ($2,000,000 par due 2/2013) |
|
12.08% (Libor + 6.75%/Q) |
|
8/23/06 |
|
2,000,000 |
|
2,000,000 |
|
$ 1.00 |
|
|
|
|
|
|
|
Junior secured loan ($12,000,000 par due 2/2013) |
|
12.08% (Libor + 6.75%/Q) |
|
8/23/06 |
|
12,000,000 |
|
12,000,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
Common units (1,709 shares) |
|
|
|
8/23/06 |
|
1,000,000 |
|
1,000,000 |
|
$ 585.14 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
109,398,718 |
|
106,382,861 |
|
|
|
12.86 |
% |
9
Manufacturing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arrow Group Industries, Inc. |
|
Residential and outdoor shed manufacturer |
|
Senior secured loan ($6,000,000 par due 4/2010) |
|
10.35% (Libor + 5.00%/Q) |
|
3/28/05 |
|
6,037,770 |
|
6,000,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerald Performance Materials, LLC |
|
Polymers and performance materials manufacturer |
|
Senior secured loan ($10,344,019 par due 5/2011) |
|
9.60% (Libor + 4.25%/B) |
|
5/22/06 |
|
10,344,019 |
|
10,344,019 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($52,632 par due 5/2011) |
|
10.00% (Base Rate + 1.75%/D) |
|
5/22/06 |
|
52,632 |
|
52,632 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($3,728,092 par due 5/2011) |
|
11.35% (Libor + 6.00%/M) |
|
5/22/06 |
|
3,728,092 |
|
3,728,092 |
|
$ 1.00 |
|
|
|
|
|
|
|
Senior secured loan ($1,522,742 par due 5/2011) |
|
11.35% (Libor + 6.00%/M) |
|
5/22/06 |
|
1,522,742 |
|
1,522,742 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($4,321,657 par due 5/2011) |
|
13.00% cash, 3.00% PIK |
|
5/22/06 |
|
4,321,657 |
|
4,321,657 |
|
$ 1.00 |
{4} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Saw Mill PCG Partners LLC |
|
Precision components manufacturer |
|
Common units (1,000 shares) |
|
|
|
2/2/07 |
|
1,000,000 |
|
1,000,000 |
|
1,000.00 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qualitor, Inc. |
|
Automotive aftermarket components supplier |
|
Senior secured loan ($1,955,000 par due 12/2011) |
|
9.60% (Libor + 4.25%/Q) |
|
12/29/04 |
|
1,955,000 |
|
1,955,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
Junior secured loan ($5,000,000 par due 6/2012) |
|
12.60% (Libor + 7.25%/Q) |
|
12/29/04 |
|
5,000,000 |
|
5,000,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Paint, Inc. |
|
Paint manufacturer |
|
Junior secured loan ($4,500,000 par due 5/2013) |
|
11.13% (Libor + 5.75%/S) |
|
5/25/06 |
|
4,500,000 |
|
4,500,000 |
|
$ 1.00 |
|
|
|
|
|
|
|
Junior secured loan ($12,000,000 par due 5/2013) |
|
11.13% (Libor + 5.75%/S) |
|
5/25/06 |
|
12,000,000 |
|
12,000,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reflexite Corporation {10} {20} |
|
Developer and manufacturer of high visibility reflective products |
|
Senior subordinated loan ($7,692,581 par due 12/2011) |
|
11.00% cash, 3.00% PIK |
|
12/30/04 |
|
7,692,581 |
|
7,923,052 |
|
$ 1.03 |
{2}{4} |
|
|
|
|
|
|
Common Stock (1,729,627 shares) |
|
|
|
3/28/06 |
|
25,682,891 |
|
26,530,057 |
|
$ 15.34 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Universal Trailer Corporation {6} {20} |
|
Livestock and specialty trailer manufacturer |
|
Common stock (50,000 shares) |
|
|
|
10/8/04 |
|
6,424,645 |
|
5,500,000 |
|
$ 110.00 |
{5} |
|
|
|
|
|
|
Warrants to purchase 22,208 shares |
|
|
|
10/8/04 |
|
1,505,776 |
|
2,442,880 |
|
$ 110.00 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Varel Holdings, Inc. |
|
Drill bit manufacturer |
|
Common stock (30,451 shares) |
|
|
|
5/18/05 |
|
3,045 |
|
1,011,569 |
|
$ 33.22 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
91,770,850 |
|
93,831,700 |
|
|
|
11.34 |
% |
10
Consumer Products - Non-Durable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AWTP, LLC |
|
Water treatment services |
|
Junior secured loan ($1,600,000 par due 12/2012) |
|
12.85% (Libor + 7.50%/Q) |
|
12/21/05 |
|
1,600,000 |
|
1,600,000 |
|
$ 1.00 |
|
|
|
|
|
|
|
Junior secured loan ($12,000,000 par due 12/2012) |
|
12.85% (Libor + 7.50%/Q) |
|
12/21/05 |
|
12,000,000 |
|
12,000,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Badanco Enterprises, Inc. |
|
Luggage manufacturer |
|
Senior secured revolving loan ($550,337 par due 1/2012) |
|
11.50% (Base Rate + 3.25%/D) |
|
1/24/07 |
|
550,337 |
|
550,337 |
|
$ 1.00 |
|
|
|
|
|
|
|
Senior secured revolving loan ($500,000 par due 1/2012) |
|
9.82% (Libor + 4.50%/M) |
|
1/24/07 |
|
500,000 |
|
500,000 |
|
$ 1.00 |
|
|
|
|
|
|
|
Senior secured loan ($312,500 par due 1/2012) |
|
11.50% (Base Rate + 3.25%/D) |
|
1/24/07 |
|
312,500 |
|
312,500 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($5,937,500 par due 1/2012) |
|
9.86% (Libor + 4.50%/Q) |
|
1/24/07 |
|
5,937,500 |
|
5,937,500 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($5,625,000 par due 1/2012) |
|
9.86% (Libor + 4.50%/Q) |
|
1/24/07 |
|
5,625,000 |
|
5,625,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Innovative Brands, LLC |
|
Consumer products and personal care manufacturer |
|
Senior Secured Loan ($12,967,500 par due 9/2011) |
|
11.13 % |
|
10/12/06 |
|
12,967,500 |
|
12,967,500 |
|
$ 1.00 |
|
|
|
|
|
|
|
Senior Secured Loan ($11,970,000 par due 9/2011) |
|
11.13 % |
|
10/12/06 |
|
11,970,000 |
|
11,970,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Making Memories Wholesale, Inc. {7} {20} |
|
Scrapbooking branded products manufacturer |
|
Senior secured loan ($7,600,000 par due 3/2011) |
|
9.88% (Libor + 4.50%/Q) |
|
5/5/05 |
|
7,600,000 |
|
7,600,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
Senior subordinated loan ($10,255,347 par due 5/2012) |
|
12.50% cash, 2.00% PIK |
|
5/5/05 |
|
10,255,347 |
|
10,255,347 |
|
$ 1.00 |
{2}{4} |
|
|
|
|
|
|
Preferred stock (3,759 shares) |
|
|
|
5/5/05 |
|
3,758,800 |
|
1,320,000 |
|
$ 351.16 |
{5} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shoes for Crews, LLC |
|
Safety footwear and slip-related mats |
|
Senior secured loan ($1,248,680 par due 7/2010) |
|
8.61% (Libor + 3.25%/S) |
|
10/8/04 |
|
1,256,027 |
|
1,256,027 |
|
$ 1.01 |
{3} |
|
|
|
|
|
|
Senior secured revolving loan ($3,333,333 par due 7/2010) |
|
10.25% (Base Rate + 2.00%/D) |
|
6/16/06 |
|
3,333,333 |
|
3,333,333 |
|
$ 1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UCG Paper Crafts, Inc. |
|
Scrapbooking materials manufacturer |
|
Senior secured loan ($1,980,000 par due 2/2013) |
|
8.57% (Libor + 3.25%/M) |
|
2/23/06 |
|
1,980,000 |
|
1,980,000 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
Junior secured loan ($9,877,557 par due 2/2013) |
|
12.82% (Libor + 7.50%/M) |
|
2/23/06 |
|
9,877,557 |
|
9,877,557 |
|
$ 1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
89,523,901 |
|
87,085,101 |
|
|
|
10.52 |
% |
11
Containers-Packaging |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Captive Plastics, Inc. |
|
Plastics container manufacturer |
|
Junior secured loan ($15,500,000 par due 2/2012) |
|
12.61% (Libor + 7.25%/Q) |
|
12/19/05 |
|
15,500,000 |
|
15,500,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Junior secured loan ($12,000,000 par due 2/2012) |
|
12.61% (Libor + 7.25%/Q) |
|
12/19/05 |
|
12,000,000 |
|
12,000,000 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Container Services, LLC {8} {20} |
|
Industrial container manufacturer, reconditioner and servicer |
|
Senior secured loan ($15,426,242 par due 9/2011) |
|
11.34% (Libor + 6.00%/S) |
|
9/30/05 |
|
15,426,242 |
|
15,426,242 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($994,937 par due 9/2011) |
|
11.34% (Libor + 6.00%/S) |
|
6/21/06 |
|
994,937 |
|
994,937 |
|
$ |
1.00 |
{2} |
|
|
|
|
|
|
Senior secured loan ($11,879,093 par due 9/2011) |
|
11.34% (Libor + 6.00%/S) |
|
6/21/06 |
|
11,879,093 |
|
11,879,093 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($39,253 par due 9/2011) |
|
11.35% (Libor + 6.00%/Q) |
|
6/21/06 |
|
39,253 |
|
39,253 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($2,532 par due 9/2011) |
|
11.35% (Libor + 6.00%/Q) |
|
6/21/06 |
|
2,532 |
|
2,532 |
|
$ |
1.00 |
{2} |
|
|
|
|
|
|
Senior secured loan ($30,227 par due 9/2011) |
|
11.35% (Libor + 6.00%/Q) |
|
6/21/06 |
|
30,227 |
|
30,227 |
|
$ |
1.00 |
{3} |
|
|
|
|
|
|
Senior secured loan ($9,900,000 par due 9/2011) |
|
11.34% (Libor + 6.00.%/S) |
|
9/30/05 |
|
9,900,000 |
|
9,900,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($25,000 par due 9/2011) |
|
11.35% (Libor + 6.00%/Q) |
|
9/30/05 |
|
25,000 |
|
25,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured revolving loan ($536,957 par due 9/2011) |
|