UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended June 30, 2008 |
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OR |
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o |
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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 |
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33-1089684 |
(State or other jurisdiction of |
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(I.R.S. Employer |
incorporation or organization) |
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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, a non-accelerated filer, or a smaller reporting company. See definitions of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer x |
Non-accelerated filer o |
Accelerated filer o |
Smaller reporting company o |
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(Do not check if a smaller reporting company) |
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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 |
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Outstanding at August 7, 2008 |
Common stock, $0.001 par value |
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97,152,820 |
ARES CAPITAL CORPORATION
Part I. |
Financial Information |
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Item 1. |
Financial Statements. |
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Consolidated Balance Sheet as of June 30, 2008 (unaudited) and December 31, 2007 |
1 |
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2 |
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Consolidated Schedule of Investments as of June 30, 2008 (unaudited) and December 31, 2007 |
3 |
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Consolidated Statement of Stockholders Equity for the three and six months ended June 30, 2008 (unaudited) and June 30, 2007 (unaudited) |
32 |
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Consolidated Statement of Cash Flows for the three and six months ended June 30, 2008 (unaudited) and June 30, 2007 (unaudited) |
33 |
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34 |
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Managements Discussion and Analysis of Financial Condition and Results of Operations. |
49 |
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58 |
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58 |
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Part II. |
Other Information |
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59 |
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59 |
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Unregistered Sales of Equity Securities and Use of Proceeds. |
59 |
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59 |
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59 |
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60 |
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60 |
ARES CAPITAL CORPORATION AND SUBSIDIARIES
(dollar amounts in thousands, except per share data)
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As of |
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June 30, 2008 |
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December 31, 2007 |
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(unaudited) |
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ASSETS |
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Investments at fair value (amortized cost of $2,161,978 and $1,795,621, respectively) |
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Non-controlled/non-affiliate company investments |
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$ |
1,457,081 |
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$ |
1,167,200 |
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Non-controlled affiliate company investments |
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436,639 |
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430,371 |
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Controlled affiliate company investments |
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196,732 |
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176,631 |
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Total investments at fair value |
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2,090,452 |
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1,774,202 |
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Cash and cash equivalents |
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77,047 |
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21,142 |
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Receivable for open trades |
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587 |
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1,343 |
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Interest receivable |
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24,588 |
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23,730 |
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Other assets |
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8,382 |
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8,988 |
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Total assets |
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$ |
2,201,056 |
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$ |
1,829,405 |
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LIABILITIES |
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Debt |
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$ |
847,734 |
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$ |
681,528 |
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Accounts payable and accrued expenses |
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5,439 |
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5,516 |
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Management and incentive fees payable |
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16,694 |
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13,041 |
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Interest and facility fees payable |
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2,641 |
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4,769 |
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Total liabilities |
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$ |
872,508 |
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$ |
704,854 |
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Commitments and contingencies (Note 6) |
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STOCKHOLDERS EQUITY |
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Common stock, par value $.001 per share, 200,000,000 and 100,000,000 common shares authorized, respectively, 97,152,820 and 72,684,090 common shares issued and outstanding, respectively |
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97 |
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73 |
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Capital in excess of par value |
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1,399,467 |
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1,136,599 |
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Accumulated undistributed net investment income |
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(624 |
) |
7,005 |
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Accumulated undistributed net realized gain on sale of investments and foreign currencies |
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17 |
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1,471 |
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Net unrealized loss on investments and foreign currencies |
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(70,409 |
) |
(20,597 |
) |
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Total stockholders equity |
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1,328,548 |
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1,124,551 |
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Total liabilities and stockholders equity |
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$ |
2,201,056 |
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$ |
1,829,405 |
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NET ASSETS PER SHARE |
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$ |
13.67 |
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$ |
15.47 |
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See accompanying notes to consolidated financial statements. |
1
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(dollar amounts in thousands, except per share data)
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For the three months ended |
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For the six months ended |
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June 30, 2008 |
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June 30, 2007 |
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June 30, 2008 |
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June 30, 2007 |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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INVESTMENT INCOME: |
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From non-controlled/non-affiliate company investments: |
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Interest from investments |
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$ |
37,768 |
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$ |
34,251 |
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$ |
72,734 |
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$ |
64,145 |
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Capital structuring service fees |
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8,421 |
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1,982 |
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11,146 |
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6,267 |
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Interest from cash & cash equivalents |
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441 |
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671 |
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989 |
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1,492 |
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Dividend income |
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375 |
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375 |
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871 |
|
750 |
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Other income |
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583 |
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389 |
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1,408 |
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507 |
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Total investment income from non-controlled/non-affiliate company investments |
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47,588 |
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37,668 |
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87,148 |
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73,161 |
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From non-controlled affiliate company investments: |
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Interest from investments |
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8,198 |
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5,469 |
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16,697 |
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9,416 |
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Capital structuring service fees |
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3,225 |
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1,095 |
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3,262 |
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Dividend income |
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218 |
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503 |
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266 |
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503 |
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Other income |
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378 |
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314 |
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619 |
|
552 |
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Total investment income from non-controlled affiliate company investments |
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8,794 |
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9,511 |
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18,677 |
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13,733 |
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From controlled affiliate company investments: |
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Interest from investments |
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3,758 |
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55 |
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6,180 |
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55 |
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Capital structuring service fees |
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2,900 |
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165 |
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3,000 |
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165 |
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Other income |
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424 |
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666 |
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Total investment income from controlled affiliate company investments |
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7,082 |
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220 |
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9,846 |
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220 |
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Total investment income |
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63,464 |
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47,399 |
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115,671 |
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87,114 |
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EXPENSES: |
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Interest and credit facility fees |
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7,155 |
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7,565 |
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17,078 |
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16,114 |
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Base management fees |
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7,679 |
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5,814 |
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14,766 |
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10,903 |
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Incentive management fees |
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9,015 |
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6,229 |
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15,508 |
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10,983 |
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Professional fees |
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1,653 |
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1,524 |
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2,871 |
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2,489 |
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Insurance |
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349 |
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266 |
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626 |
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531 |
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Administrative |
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365 |
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235 |
|
900 |
|
445 |
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Depreciation |
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102 |
|
102 |
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204 |
|
203 |
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Directors fees |
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66 |
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63 |
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140 |
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128 |
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Other |
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881 |
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653 |
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1,728 |
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1,415 |
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Total expenses |
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27,265 |
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22,451 |
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53,821 |
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43,211 |
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NET INVESTMENT INCOME BEFORE INCOME TAXES |
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36,199 |
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24,948 |
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61,850 |
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43,903 |
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Income tax expense (benefit), including excise tax |
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138 |
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(43 |
) |
(184 |
) |
(33 |
) |
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NET INVESTMENT INCOME |
|
36,061 |
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24,991 |
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62,034 |
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43,936 |
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REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: |
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Net realized gains (losses): |
|
|
|
|
|
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Non-controlled/non-affiliate company investments |
|
10 |
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(8,113 |
) |
217 |
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(7,844 |
) |
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Non-controlled affiliate company investments |
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1 |
|
230 |
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1 |
|
320 |
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Controlled affiliate company investments |
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Foreign currency transactions |
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6 |
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(2 |
) |
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Net realized gains (losses) |
|
17 |
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(7,883 |
) |
216 |
|
(7,524 |
) |
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Net unrealized gains (losses): |
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|
|
|
|
|
|
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|
||||
Non-controlled/non-affiliate company investments |
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(9,990 |
) |
14,376 |
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(28,594 |
) |
12,284 |
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Non-controlled affiliate company investments |
|
(13,116 |
) |
2,083 |
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(23,858 |
) |
8,460 |
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Controlled affiliate company investments |
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(9,700 |
) |
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|
2,633 |
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|
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Foreign currency transactions |
|
|
|
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|
7 |
|
|
|
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Net unrealized gains (losses) |
|
(32,806 |
) |
16,459 |
|
(49,812 |
) |
20,744 |
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Net realized and unrealized gains (losses) from investments and foreign currency transactions |
|
(32,789 |
) |
8,576 |
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(49,596 |
) |
13,220 |
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NET INCREASE IN STOCKHOLDERS EQUITY RESULTING FROM OPERATIONS |
|
$ |
3,272 |
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$ |
33,567 |
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$ |
12,438 |
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$ |
57,156 |
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|
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BASIC AND DILUTED EARNINGS PER COMMON SHARE (see Note 4) |
|
$ |
0.04 |
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$ |
0.48 |
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$ |
0.15 |
|
$ |
0.91 |
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WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING BASIC AND DILUTED (see Note 4) |
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90,125,629 |
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70,117,970 |
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82,097,395 |
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62,544,682 |
|
See accompanying notes to consolidated financial statements.
2
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2008 (unaudited)
(dollar amounts in thousands, except per unit data)
Company(1) |
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Industry |
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Investment |
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Interest(10) |
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Initial |
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Amortized |
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Fair Value |
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Fair Value |
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Percentage |
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Healthcare Services |
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American Renal Associates, Inc. |
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Dialysis provider |
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Senior secured loan |
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6.06% (Libor+ 3.25%/Q) |
|
12/14/05 |
|
$ |
1,803 |
|
$ |
1,803 |
|
$ |
1.00 |
(3) |
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|
|
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Senior secured loan |
|
6.75% (Base Rate + 1.75%/D) |
|
12/14/05 |
|
180 |
|
180 |
|
$ |
1.00 |
(3) |
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|
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Senior secured loan |
|
6.06% (Libor+ 3.25%/Q) |
|
12/14/05 |
|
5,738 |
|
5,738 |
|
$ |
1.00 |
(3) |
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Senior secured loan |
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6.75% (Base Rate + 1.75%/D) |
|
12/14/05 |
|
31 |
|
31 |
|
$ |
1.00 |
(3) |
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Senior secured loan |
|
6.06% (Libor+ 3.25%/Q) |
|
12/14/05 |
|
262 |
|
262 |
|
$ |
1.00 |
(3) |
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Senior secured loan |
|
5.94% (Libor + 3.25%/Q) |
|
12/14/05 |
|
2,620 |
|
2,620 |
|
$ |
1.00 |
(3) |
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Capella Healthcare, Inc. |
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Acute care hospital operator |
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Junior secured loan |
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13.00% |
|
2/29/08 |
|
65,000 |
|
65,000 |
|
$ |
1.00 |
|
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|
|
|
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Junior secured loan |
|
13.00% |
|
2/29/08 |
|
30,000 |
|
30,000 |
|
$ |
1.00 |
(2) |
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CT Technologies Intermediate Holdings, Inc. and CT Technologies Holdings, LLC (6) |
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Healthcare analysis services |
|
Senior secured revolving loan |
|
7.98% (Libor + 5.00%/A) |
|
6/15/07 |
|
810 |
|
810 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Senior secured revolving loan |
|
9.65% (Libor + 5.00%/B) |
|
6/15/07 |
|
810 |
|
810 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Senior secured revolving loan |
|
7.90% (Libor + 5.00%/B) |
|
6/15/07 |
|
810 |
|
810 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Senior secured revolving loan |
|
9.00% (Base Rate + 4.00$/D) |
|
6/15/07 |
|
900 |
|
900 |
|
$ |
1.00 |
|
|
|
||
|
|
|
|
Senior secured loan ($13,833 par due 3/2012) |
|
9.65% (Libor + 5.00%/S) |
|
6/15/07 |
|
13,800 |
|
13,142 |
|
$ |
0.95 |
|
|
|
||
|
|
|
|
Senior secured loan ($4,000 par due 3/2012) |
|
9.65% (Libor + 5.00%/S) |
|
6/15/07 |
|
4,000 |
|
3,800 |
|
$ |
0.95 |
(3) |
|
|
||
|
|
|
|
Senior secured loan |
|
7.98% (Libor + 5.00%/A) |
|
6/15/07 |
|
6,771 |
|
6,448 |
|
$ |
0.95 |
|
|
|
||
|
|
|
|
Senior secured loan |
|
7.98% (Libor + 5.00%/A) |
|
6/15/07 |
|
1,963 |
|
1,864 |
|
$ |
0.95 |
(3) |
|
|
||
|
|
|
|
Senior secured loan |
|
8.09% (Libor + 5.00%/A) |
|
6/15/07 |
|
10,066 |
|
9,610 |
|
$ |
0.95 |
|
|
|
||
|
|
|
|
Senior secured loan |
|
8.09% (Libor + 5.00%/A) |
|
6/15/07 |
|
2,925 |
|
2,779 |
|
$ |
0.95 |
(3) |
|
|
||
|
|
|
|
Senior secured loan |
|
7.78% (Libor + 5.00%/A) |
|
6/15/07 |
|
10,245 |
|
9,733 |
|
$ |
0.95 |
|
|
|
||
|
|
|
|
Senior secured loan |
|
7.78% (Libor + 5.00%/A) |
|
6/15/07 |
|
2,963 |
|
2,814 |
|
$ |
0.95 |
(3) |
|
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||
|
|
|
|
Preferred stock (6,925 shares) |
|
14.00% PIK |
|
6/15/07 |
|
6,925 |
|
6,925 |
|
$ |
1,000.00 |
(4) |
|
|
||
|
|
|
|
Common stock (9,679 shares) |
|
|
|
6/15/07 |
|
4,000 |
|
4,000 |
|
$ |
413.27 |
(5) |
|
|
||
3
Company(1) |
|
Industry |
|
Investment |
|
Interest(10) |
|
Initial |
|
Amortized |
|
Fair Value |
|
Fair Value |
|
Percentage |
|
|
|
|
|
|
Common stock (1,546 shares) |
|
|
|
6/15/07 |
|
|
|
|
|
$ |
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DSI Renal, Inc. |
|
Dialysis provider |
|
Senior subordinated note ($54,473 par due 4/2014) |
|
12.00% Cash, 2.00% PIK |
|
4/4/06 |
|
54,539 |
|
54,473 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
Senior subordinated note ($11,693 par due 4/2014) |
|
12.00% Cash, 2.00% PIK |
|
4/4/06 |
|
11,693 |
|
11,693 |
|
$ |
1.00 |
(4) (3) |
|
|
|
|
|
|
Senior secured revolving loan |
|
8.00% (Base Rate + 3.00%/D) |
|
4/4/06 |
|
122 |
|
109 |
|
$ |
0.90 |
|
|
|
|
|
|
|
Senior secured revolving loan |
|
5.68% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,600 |
|
1,440 |
|
$ |
0.90 |
|
|
|
|
|
|
|
Senior secured revolving loan |
|
5.67% (Libor + 3.00%/B) |
|
4/4/06 |
|
1,920 |
|
1,728 |
|
$ |
0.90 |
|
|
|
|
|
|
|
Senior secured revolving loan |
|
5.92% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,120 |
|
1,008 |
|
$ |
0.90 |
|
|
|
|
|
|
|
Senior secured revolving loan |
|
5.92% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,152 |
|
1,037 |
|
$ |
0.90 |
|
|
|
|
|
|
|
Senior secured revolving loan |
|
5.75% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,600 |
|
1,440 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GG Merger Sub I, Inc. |
|
Drug testing services |
|
Senior secured loan |
|
6.79% (Libor + 4.00%/Q) |
|
12/14/07 |
|
22,354 |
|
21,930 |
|
$ |
0.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HCP Acquisition Holdings, LLC (7) |
|
Healthcare compliance advisory services |
|
Class A units (8,100,000 units) |
|
|
|
6/26/08 |
|
8,100 |
|
8,100 |
|
$ |
1.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPBP Holdings, Inc., Cohr Holdings, Inc. and MPBP Acquisition Co., Inc. |
|
Healthcare equipment services |
|
Junior secured loan ($20,000 par due 1/2014) |
|
9.19% (Libor + 6.25%/Q) |
|
1/31/07 |
|
20,000 |
|
12,000 |
|
$ |
0.60 |
|
|
|
|
|
|
|
Junior secured loan ($12,000 par due 1/2014) |
|
9.19% (Libor + 6.25%/Q) |
|
1/31/07 |
|
12,000 |
|
7,200 |
|
$ |
0.60 |
(3) |
|
|
|
|
|
|
Common stock (50,000 shares) |
|
|
|
1/31/07 |
|
5,000 |
|
|
|
$ |
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MWD Acquisition Sub, Inc. |
|
Dental services |
|
Junior secured loan ($5,000 par due 5/2012) |
|
9.13% (Libor + 6.25%/S) |
|
5/3/07 |
|
5,000 |
|
4,500 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OnCURE Medical Corp. |
|
Radiation oncology care provider |
|
Senior subordinated note ($26,254 par due 8/2013) |
|
11.00% Cash, 1.50% PIK |
|
8/18/06 |
|
26,254 |
|
25,729 |
|
4 0.98 |
(4) |
|
|
|
|
|
|
|
Senior secured loan ($1,612 par due 8/2009) |
|
6.00% (Libor + 3.50%/M) |
|
8/18/06 |
|
1,612 |
|
1,548 |
|
$ |
0.96 |
|
|
|
|
|
|
|
Common stock (857,143 shares) |
|
|
|
8/18/06 |
|
3,000 |
|
3,000 |
|
$ |
3.50 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passport Health Communications, Inc. |
|
Healthcare technology provider |
|
Senior secured loan ($25,000 par due 5/2014) |
|
10.50% (Libor + 7.50%/S) |
|
5/9/08 |
|
25,000 |
|
25,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PG Mergersub, Inc. |
|
Provider of patient surveys, management reports and national databases for the integrated healthcare delivery system |
|
Senior subordinated loan ($5,000 par due 3/2016) |
|
12.50% |
|
3/12/08 |
|
4,900 |
|
4,900 |
|
$ |
0.98 |
|
|
|
4
Company(1) |
|
Industry |
|
Investment |
|
Interest(10) |
|
Initial |
|
Amortized |
|
Fair Value |
|
Fair Value |
|
Percentage |
|
|
|
|
|
|
Preferred stock (333 shares) |
|
|
|
3/12/08 |
|
333 |
|
333 |
|
$ |
1,000.00 |
(5) |
|
|
|
|
|
|
Class A Common stock (16,667 shares) |
|
|
|
3/12/08 |
|
167 |
|
167 |
|
$ |
10.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Triad Laboratory Alliance, LLC |
|
Laboratory services |
|
Senior subordinated note ($15,221 par due 12/2012) |
|
12.00% cash, 1.75% PIK |
|
12/21/05 |
|
15,221 |
|
15,221 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
Senior secured loan |
|
6.05% (Libor + 3.25%/Q) |
|
12/21/05 |
|
2,924 |
|
2,633 |
|
$ |
0.90 |
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VOTC Acquisition Corp. |
|
Radiation oncology care provider |
|
Senior secured loan |
|
15.78% (Libor + 11.00% Cash, 2.00% PIK/Q) |
|
6/30/08 |
|
2,946 |
|
2,946 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
401,179 |
|
378,214 |
|
|
|
28.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage, Food and Tobacco |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3091779 Nova Scotia Inc. |
|
Baked goods manufacturer |
|
Junior secured loan (Cdn$14,000 par due 11/2012) |
|
11.50% |
|
11/2/07 |
|
14,850 |
|
13,734 |
|
$ |
1.00 |
(12) |
|
|
|
|
|
|
Warrants to purchase 57,545 shares |
|
|
|
|
|
|
|
|
|
$ |
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apple & Eve, LLC and US Juice Partners, LLC (6) |
|
Juice manufacturer |
|
Senior secured revolving loan |
|
8.92% (Libor + 6.00%/Q) |
|
10/5/07 |
|
1,846 |
|
1,846 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured revolving loan |
|
10.00% (Base Rate + 5.00%/D) |
|
10/5/07 |
|
3,500 |
|
3,500 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured revolving loan |
|
8.78% (Libor + 6.00%/Q) |
|
10/5/07 |
|
1,000 |
|
1,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($33,660 par due 10/2013) |
|
9.02% (Libor + 6.00%/S) |
|
10/5/07 |
|
33,660 |
|
31,977 |
|
$ |
0.95 |
|
|
|
|
|
|
|
Senior secured loan ($11,880 par due 10/2013) |
|
9.02% (Libor + 6.00%/S) |
|
10/5/07 |
|
11,880 |
|
11,286 |
|
$ |
0.95 |
(3) |
|
|
|
|
|
|
Senior secured loan |
|
8.80% (Libor + 6.00%/Q) |
|
10/5/07 |
|
85 |
|
81 |
|
$ |
0.95 |
|
|
|
|
|
|
|
Senior secured loan |
|
8.80% (Libor + 6.00%/Q) |
|
10/5/07 |
|
30 |
|
29 |
|
$ |
0.95 |
(3) |
|
|
|
|
|
|
Senior units (50,000 units) |
|
|
|
10/5/07 |
|
5,000 |
|
5,000 |
|
$ |
100.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Best Brands Corporation |
|
Baked goods manufacturer |
|
Senior secured loan |
|
9.70 (Libor + 7.00%/Q) |
|
2/15/2008 |
|
7,033 |
|
7,680 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Junior secured loan |
|
16.73% (Libor + 5.00% Cash, 7.00% PIK/Q) |
|
12/14/06 |
|
1,007 |
|
1,007 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
Junior secured loan |
|
16.73% (Libor + 5.00% Cash, 7.00% PIK/Q) |
|
12/14/06 |
|
27,802 |
|
27,800 |
|
$ |
1.00 |
(2)(4) |
|
|
5
Company(1) |
|
Industry |
|
Investment |
|
Interest(10) |
|
Initial |
|
Amortized |
|
Fair Value |
|
Fair Value |
|
Percentage |
|
|
|
|
|
|
Junior secured loan ($11,451 par due 6/2013) |
|
16.73% (Libor + 5.00% Cash, 7.00% PIK/Q) |
|
12/14/06 |
|
11,451 |
|
11,451 |
|
$ |
1.00 |
(3)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charter Baking Company, Inc. |
|
Baked goods manufacturer |
|
Senior subordinated note ($5,000 par due 2/2013) |
|
12.00% |
|
2/6/08 |
|
5,000 |
|
5,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Preferred stock (6,258 shares) |
|
|
|
9/1/06 |
|
2,500 |
|
2,500 |
|
$ |
399.48 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTG Management, Inc. |
|
Airport restaurant operator |
|
Junior secured loan ($10,136 par due 6/2013) |
|
18.00% (Libor + 11.00% Cash, 4.00% PIK/M) |
|
6/19/08 |
|
10,136 |
|
10,136 |
|
$ |
1.00 |
(4) |
|
|
|
|
Warrants to purchase up to 9 shares of common stock |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vistar Corporation and Wellspring Distribution Corp. |
|
Foodservice distributor |
|
Senior subordinated note ($73,625 par due 5/2015) |
|
13.50% |
|
5/23/08 |
|
73,625 |
|
73,625 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Class A non-voting common stock (1,366,120 shares) |
|
|
|
5/23/08 |
|
7,500 |
|
7,500 |
|
$ |
1.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
217,905 |
|
215,152 |
|
|
|
16.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Campus Management Corp. and Campus Management Acquisition Corp. (6) |
|
Education software developer |
|
Senior secured loan ($44,888 par due 8/2013) |
|
11.00% |
|
2/8/08 |
|
44,888 |
|
44,888 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Preferred stock (422,764 shares) |
|
8.00% PIK |
|
2/8/08 |
|
7,674 |
|
7,674 |
|
$ |
18.15 |
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELC Acquisition Corporation |
|
Developer, manufacturer and retailer of educational products |
|
Senior secured loan |
|
6.27% (Libor + 3.25%/S) |
|
11/30/06 |
|
264 |
|
264 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
Junior secured loan |
|
9.80% (Libor + 7.00%/Q) |
|
11/30/06 |
|
8,333 |
|
8,333 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equinox EIC Partners, LLC and MUA Management Company, Ltd. (7) (8) |
|
Medical school operator |
|
Senior secured revolving loan |
|
10.00% (Base Rate + 5.00%/D) |
|
4/3/07 |
|
3,350 |
|
3,350 |
|
$ |
1.43 |
|
|
|
|
|
|
|
Senior secured revolving loan |
|
8.80% (Libor + 6.00%/Q) |
|
4/3/07 |
|
3,500 |
|
3,500 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured revolving loan |
|
10.00% (Base Rate + 5.00%/D) |
|
4/3/07 |
|
3,450 |
|
3,450 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan |
|
9.19% (Libor + 6.00%/S) |
|
4/3/07 |
|
3,637 |
|
3,637 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan |
|
8.81% (Libor + 6.00%/Q) |
|
4/3/07 |
|
613 |
|
613 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan |
|
8.54% (Libor + 6.00%/S) |
|
9/21/07 |
|
14,113 |
|
14,113 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan |
|
8.72% (Libor + 6.00%/Q) |
|
4/3/07 |
|
7,400 |
|
7,400 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
Common membership interest (26.27% interest) |
|
|
|
9/21/07 |
|
15,000 |
|
20,000 |
|
|
(5) |
|
|
6
Company(1) |
|
Industry |
|
Investment |
|
Interest(10) |
|
Initial |
|
Amortized |
|
Fair Value |
|
Fair
Value |
|
Percentage
of |
|
|
Instituto de Banca y Comercio, Inc. (8) |
|
Private school operator |
|
Senior secured revolving loan ($1,500 par due 3/2014) |
|
5.68% (Libor + 3.00%/Q) |
|
3/15/07 |
|
1,500 |
|
1,500 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured revolving loan ($1,643 par due 3/2014) |
|
5.68% (Libor + 3.00%/Q) |
|
3/15/07 |
|
1,643 |
|
1,643 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured revolving loan ($821 par due 3/2014) |
|
5.80% (Libor + 3.00%/Q) |
|
3/15/07 |
|
821 |
|
821 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured revolving loan ($1,125 par due 3/2014) |
|
5.92% (Libor + 3.00%/Q) |
|
3/15/07 |
|
1,125 |
|
1,125 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($7,500 par due 3/2014) |
|
7.87% (Libor + 5.00%/Q) |
|
3/15/07 |
|
7,500 |
|
7,500 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($12,315 par due 3/2014) |
|
7.87% (Libor + 5.00%/Q) |
|
3/15/07 |
|
12,315 |
|
12,315 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($11,880 par due 3/2014) |
|
7.87% (Libor + 5.00%/Q) |
|
3/15/07 |
|
11,880 |
|
11,880 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
Senior subordinated loan ($19,302 par due 6/2014) |
|
10.50% Cash, 3.50% PIK |
|
6/4/08 |
|
19,302 |
|
19,302 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
Promissory note ($429 par due 9/2015) |
|
6.00% |
|
6/4/08 |
|
429 |
|
857 |
|
$ |
2.00 |
|
|
|
|
|
|
|
Preferred stock (214,286 shares) |
|
|
|
6/4/08 |
|
1,018 |
|
2,036 |
|
$ |
9.50 |
(5) |
|
|
|
|
|
|
Common stock (214,286 shares) |
|
|
|
6/4/08 |
|
54 |
|
107 |
|
$ |
0.50 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Finance, LLC |
|
Private school operator |
|
Senior secured note ($18,000 par due 12/2012) |
|
11.50% |
|
12/13/05 |
|
18,000 |
|
18,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured note ($15,000 par due 12/2012) |
|
11.50% |
|
12/13/05 |
|
15,000 |
|
15,000 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
202,809 |
|
209,308 |
|
|
|
15.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Abingdon Investments Limited (6) (8) (9) |
|
Investment company |
|
Ordinary shares (948,500 shares) |
|
|
|
12/15/06 |
|
9,033 |
|
6,316 |
|
$ |
6.66 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Firstlight Financial Corporation (6) (9) |
|
Investment company |
|
Senior subordinated loan ($68,214 par due 12/2016) |
|
10.00% PIK |
|
12/31/06 |
|
68,195 |
|
68,195 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
Common stock (10,000 shares) |
|
|
|
12/31/06 |
|
10,019 |
|
6,269 |
|
$ |
625.00 |
(5) |
|
|
|
|
|
|
Common stock (30,000 shares) |
|
|
|
12/31/06 |
|
30,000 |
|
18,750 |
|
$ |
625.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ivy Hill Middle Market Credit Fund, Ltd. (7) (8) (9) |
|
Investment company |
|
ClassB deferrable interest notes ($40,000 par due 11/2018) |
|
8.66% (Libor + 6.00%/Q) |
|
11/20/07 |
|
40,000 |
|
40,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Subordinated notes ($16,000 par due 11/2018) |
|
|
|
11/20/07 |
|
16,000 |
|
14,400 |
|
$ |
0.90 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Imperial Capital Group, LLC and Imperial Capital Private Opportunities, LP (6) (9) |
|
Investment banking services |
|
Limited partnership interest (80% interest) |
|
|
|
5/10/07 |
|
584 |
|
584 |
|
$ |
1.00 |
|
|
|
7
Company(1) |
|
Industry |
|
Investment |
|
Interest(10) |
|
Initial |
|
Amortized |
|
Fair Value |
|
Fair
Value |
|
Percentage
of |
|
|
|
|
|
|
Common units (7,710 units) |
|
|
|
5/10/07 |
|
14,997 |
|
14,997 |
|
$ |
1,945.16 |
(5) |
|
|
|
|
|
|
Common units (2,526 units) |
|
|
|
5/10/07 |
|
3 |
|
3 |
|
$ |
1.00 |
(5) |
|
|
|
|
|
|
Common units (315 units) |
|
|
|
5/10/07 |
|
|
|
|
|
$ |
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partnership Capital Growth Fund I, L.P. (9) |
|
Investment partnership |
|
Limited partnership interest (25% interest) |
|
|
|
6/16/06 |
|
2,260 |
|
2,260 |
|
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VSC Investors LLC (9) |
|
Investment company |
|
Membership interest (4.63% interest) |
|
|
|
1/24/08 |
|
290 |
|
290 |
|
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
191,381 |
|
172,064 |
|
|
|
13.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apogee Retail, LLC |
|
For-profit thrift retailer |
|
Senior secured revolving loan ($780 par due 3/2012) |
|
7.75% (Libor + 5.25%/S) |
|
3/27/07 |
|
780 |
|
780 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($7,331 par due 3/2012) |
|
7.75% (Libor + 5.25%/S) |
|
3/27/07 |
|
7,331 |
|
7,331 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($19,750 par due 3/2012) |
|
7.75% (Libor + 5.25%/S) |
|
3/27/07 |
|
19,750 |
|
19,750 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
Senior secured loan ($11,850 par due 3/2012) |
|
7.75% (Libor + 5.25%/S) |
|
3/27/07 |
|
11,850 |
|
11,850 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
Senior secured loan ($4,876 par due 3/2012) |
|
8.03% (Libor + 5.25%/S) |
|
3/27/07 |
|
4,876 |
|
4,876 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($10,739 par due 11/2012) |
|
12.00% Cash, 4.00% PIK |
|
5/28/08 |
|
10,739 |
|
10,739 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson Group, Inc. and Advent - Hudson, LLC |
|
Retail newstand operator |
|
Junior secured loan ($35,139 par due 3/2015) |
|
11.50% Cash, 1.50% PIK |
|
3/28/08 |
|
35,139 |
|
35,139 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
Membership units (6,057,000 units) |
|
|
|
3/28/08 |
|
3,000 |
|
3,000 |
|
$ |
0.50 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savers, Inc. and SAI Acquisition Corporation |
|
For-profit thrift retailer |
|
Senior subordinated note ($28,000 par due 8/2014) |
|
10.00% cash, 2.00% PIK |
|
8/8/06 |
|
28,000 |
|
28,000 |
|
$ |
1.00 |
(2) (4) |
|
|
|
|
|
|
Common stock (1,170,182 shares) |
|
|
|
8/8/06 |
|
4,500 |
|
5,800 |
|
$ |
4.96 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Things Remembered, Inc. and TRM Holdings Corporation |
|
Personalized gifts retailer |
|
Senior secured loan ($4,728 par due 9/2012) |
|
7.47% (Libor + 4.75%/M) |
|
9/28/06 |
|
4,728 |
|
4,728 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
Senior secured loan ($14,000 par due 9/2012) |
|
8.48% (Libor + 6.00%/M) |
|
9/28/06 |
|
14,000 |
|
14,000 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
Senior secured loan ($14,000 par due 9/2012) |
|
8.48% (Libor + 6.00%/M) |
|
9/28/06 |
|
14,000 |
|
14,000 |
|
$ |
1.00 |
|
|
|
|
|
|
|
Senior secured loan ($7,200 par due 9/2012) |
|
8.48% (Libor + 6.00%/M) |
|
9/28/06 |
|
7,200 |
|
7,200 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
Preferred stock (80 shares) |
|
|
|
9/28/06 |
|
1,800 |
|
1,800 |
|
$ |
22,500.00 |
(5) |
|
|
|
|
|
|
Common stock (800 shares) |
|
|
|
9/28/06 |
|
200 |
|
200 |
|
$ |
250.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
167,893 |
|
169,193 |
|
|
|
12.72 |
% |
8
Company(1) |
|
Industry |
|
Investment |
|
Interest(10) |
|
Initial |
|