UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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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 September 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)
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Maryland |
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33-1089684 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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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
(Registrant’s 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):
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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 issuer’s classes of common stock, as of the latest practicable date.
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Class |
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Outstanding at November 6, 2008 |
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Common stock, $0.001 par value |
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97,152,820 |
ARES CAPITAL CORPORATION
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Part I. |
Financial Information |
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Item 1. |
Financial Statements. |
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Consolidated Balance Sheet as of September 30, 2008 (unaudited) and December 31, 2007 |
1 |
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2 |
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Consolidated Schedule of Investments as of September 30, 2008 (unaudited) and December 31, 2007 |
3 |
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32 |
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33 |
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34 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
49 |
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57 |
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58 |
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59 |
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59 |
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Unregistered Sales of Equity Securities and Use of Proceeds. |
60 |
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60 |
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61 |
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61 |
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62 |
ARES CAPITAL CORPORATION AND SUBSIDIARIES
(dollar amounts in thousands, except per share data)
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As of |
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September 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 $2,244,617 and $1,795,621, respectively) |
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Non-controlled/non-affiliate company investments |
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$ |
1,555,169 |
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$ |
1,167,200 |
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Non-controlled affiliate company investments |
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348,062 |
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430,371 |
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Controlled affiliate company investments |
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190,463 |
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176,631 |
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Total investments at fair value |
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2,093,694 |
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1,774,202 |
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Cash and cash equivalents |
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61,409 |
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21,142 |
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Receivable for open trades |
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2,103 |
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1,343 |
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Interest receivable |
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15,069 |
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23,730 |
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Other assets |
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12,235 |
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8,988 |
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Total assets |
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$ |
2,184,510 |
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$ |
1,829,405 |
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LIABILITIES |
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Debt |
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$ |
902,152 |
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$ |
681,528 |
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Accounts payable and accrued expenses |
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7,164 |
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5,516 |
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Management and incentive fees payable |
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25,183 |
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13,041 |
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Interest and facility fees payable |
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3,829 |
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4,769 |
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Total liabilities |
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938,328 |
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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 $.001 per share, 200,000,000 and 100,000,000 common shares authorized, respectively, 97,152,820 and 72,684,090 common shares issued and outstanding, respectively |
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97 |
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73 |
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Capital in excess of par value |
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1,399,298 |
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1,136,599 |
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Accumulated undistributed net investment income |
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(4,011 |
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7,005 |
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Accumulated undistributed net realized gain on sale of investments and foreign currencies |
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— |
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1,471 |
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Net unrealized loss on investments and foreign currencies |
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(149,202 |
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(20,597 |
) |
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Total stockholders’ equity |
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1,246,182 |
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1,124,551 |
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Total liabilities and stockholders’ equity |
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$ |
2,184,510 |
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$ |
1,829,405 |
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NET ASSETS PER SHARE |
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$ |
12.83 |
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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 nine months ended |
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September 30, 2008 |
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September 30, 2007 |
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September 30, 2008 |
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September 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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$ |
45,425 |
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$ |
35,827 |
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$ |
118,112 |
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$ |
99,973 |
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Capital structuring service fees |
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3,029 |
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578 |
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14,175 |
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6,845 |
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Interest from cash & cash equivalents |
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325 |
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791 |
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1,314 |
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2,282 |
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Dividend income |
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375 |
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635 |
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1,246 |
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1,385 |
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Management fees |
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— |
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— |
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— |
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— |
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Other income |
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599 |
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218 |
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2,007 |
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725 |
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Total investment income from non-controlled/non-affiliate company investments |
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49,753 |
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38,049 |
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136,854 |
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111,210 |
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From non-controlled affiliate company investments: |
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Interest from investments |
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7,924 |
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5,669 |
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24,668 |
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13,315 |
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Capital structuring service fees |
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281 |
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— |
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1,376 |
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2,635 |
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Dividend income |
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256 |
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389 |
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522 |
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892 |
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Management fees |
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188 |
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188 |
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564 |
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564 |
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Other income |
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136 |
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41 |
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379 |
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198 |
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Total investment income from non-controlled affiliate company investments |
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8,785 |
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6,287 |
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27,509 |
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17,604 |
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From controlled affiliate company investments: |
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Interest from investments |
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2,946 |
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1,355 |
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9,126 |
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3,181 |
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Capital structuring service fees |
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— |
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2,107 |
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3,000 |
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2,899 |
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Dividend income |
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133 |
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121 |
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133 |
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121 |
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Management fees |
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437 |
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— |
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1,068 |
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— |
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Other income |
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13 |
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12 |
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48 |
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30 |
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Total investment income from controlled affiliate company investments |
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3,529 |
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3,595 |
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13,375 |
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6,231 |
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Total investment income |
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62,067 |
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47,931 |
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177,738 |
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135,045 |
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EXPENSES: |
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Interest and credit facility fees |
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9,535 |
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9,353 |
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26,613 |
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25,467 |
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Base management fees |
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7,963 |
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6,159 |
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22,729 |
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17,062 |
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Incentive management fees |
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8,205 |
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5,966 |
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23,713 |
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16,949 |
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Professional fees |
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1,499 |
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1,040 |
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4,370 |
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3,529 |
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Insurance |
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301 |
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270 |
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927 |
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801 |
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Administrative |
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802 |
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291 |
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1,702 |
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736 |
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Depreciation |
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134 |
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103 |
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338 |
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307 |
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Directors fees |
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57 |
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65 |
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197 |
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193 |
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Other |
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869 |
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854 |
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2,597 |
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2,268 |
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Total expenses |
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29,365 |
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24,101 |
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83,186 |
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67,312 |
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NET INVESTMENT INCOME BEFORE INCOME TAXES |
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32,702 |
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23,830 |
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94,552 |
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67,733 |
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Income tax expense (benefit), including excise tax |
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(118 |
) |
(79 |
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(302 |
) |
(112 |
) |
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NET INVESTMENT INCOME |
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32,820 |
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23,909 |
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94,854 |
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67,845 |
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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 |
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2,018 |
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7,398 |
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2,235 |
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(446 |
) |
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Non-controlled affiliate company investments |
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2,600 |
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— |
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2,601 |
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— |
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Controlled affiliate company investments |
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— |
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3,488 |
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— |
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3,809 |
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Foreign currency transactions |
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(38 |
) |
— |
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(40 |
) |
— |
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Net realized gains (losses) |
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4,580 |
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10,886 |
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4,796 |
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3,363 |
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Net unrealized gains (losses): |
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Non-controlled/non-affiliate company investments |
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(52,689 |
) |
(2,853 |
) |
(81,283 |
) |
9,431 |
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Non-controlled affiliate company investments |
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(21,354 |
) |
(9,018 |
) |
(45,212 |
) |
(7,968 |
) |
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Controlled affiliate company investments |
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(4,750 |
) |
— |
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(2,117 |
) |
7,410 |
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Foreign currency transactions |
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— |
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— |
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7 |
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— |
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Net unrealized gains (losses) |
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(78,793 |
) |
(11,871 |
) |
(128,605 |
) |
8,873 |
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Net realized and unrealized gains (losses) from investments and foreign currency transactions |
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(74,213 |
) |
(985 |
) |
(123,809 |
) |
12,236 |
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NET INCREASE (DECREASE) IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS |
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$ |
(41,393 |
) |
$ |
22,924 |
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$ |
(28,955 |
) |
$ |
80,081 |
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BASIC AND DILUTED EARNINGS PER COMMON SHARE (see Note 4) |
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$ |
(0.43 |
) |
$ |
0.32 |
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$ |
(0.33 |
) |
$ |
1.22 |
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WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING – BASIC AND DILUTED (see Note 4) |
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97,152,820 |
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72,059,957 |
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87,152,501 |
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65,522,194 |
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See accompanying notes to consolidated financial statements.
2
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2008 (unaudited)
(dollar amounts in thousands, except per unit data)
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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 ($1,607 par due 12/2010) |
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6.73% (Libor+ 3.25%/Q) |
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12/14/05 |
|
$ |
1,607 |
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$ |
1,607 |
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$ |
1.00 |
(3) |
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Senior secured loan ($197 par due 12/2010) |
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6.75% (Base Rate + 1.75%/D) |
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12/14/05 |
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197 |
|
197 |
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$ |
1.00 |
(3) |
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Senior secured loan ($5,738 par due 12/2011) |
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6.73% (Libor+ 3.25%/Q) |
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12/14/05 |
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5,738 |
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5,738 |
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$ |
1.00 |
(3) |
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Senior secured loan ($16 par due 12/2011) |
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6.75% (Base Rate + 1.75%/D) |
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12/14/05 |
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16 |
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16 |
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$ |
1.00 |
(3) |
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Senior secured loan ($262 par due 12/2011) |
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6.73% (Libor+ 3.25%/Q) |
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12/14/05 |
|
262 |
|
262 |
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$ |
1.00 |
(3) |
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Senior secured loan ($2,620 par due 12/2011) |
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6.03% (Libor + 3.25% /Q) |
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12/14/05 |
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2,620 |
|
2,620 |
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$ |
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 ($65,000 par due 2/2016) |
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13.00% |
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2/29/08 |
|
65,000 |
|
61,750 |
|
$ |
0.95 |
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Junior secured loan ($30,000 par due 2/2016) |
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13.00% |
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2/29/08 |
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30,000 |
|
28,500 |
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$ |
0.95 |
(2) |
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CT Technologies Intermediate Holdings, Inc. and CT Technologies Holdings, LLC (6) |
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Healthcare analysis services |
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Preferred stock (7,170 shares) |
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14.00% PIK |
|
6/15/07 |
|
7,170 |
|
7,170 |
|
$ |
1,000.00 |
(4) |
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Common stock (9,679 shares) |
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6/15/07 |
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4,000 |
|
5,383 |
|
$ |
556.10 |
(5) |
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Common stock (1,546 shares) |
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6/15/07 |
|
— |
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— |
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$ |
— |
(5) |
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DSI Renal, Inc. |
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Dialysis provider |
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Senior subordinated note ($28,427 par due 4/2014) |
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12.00% Cash, 2.00% PIK |
|
4/4/06 |
|
28,516 |
|
24,135 |
|
$ |
0.85 |
(4) |
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Senior subordinated note ($26,251 par due 4/2014) |
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12.00% Cash, 2.00% PIK |
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4/4/06 |
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26,252 |
|
22,329 |
|
$ |
0.85 |
(2)(4) |
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Senior subordinated note ($11,751 par due 4/2014) |
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12.00% Cash, 2.00% PIK |
|
4/4/06 |
|
11,751 |
|
9,988 |
|
$ |
0.85 |
(3)(4) |
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|
Senior secured revolving loan ($122 par due 3/2013) |
|
8.00% (Base Rate + 3.00%/D) |
|
4/4/06 |
|
122 |
|
109 |
|
$ |
0.90 |
|
|
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3
|
|
|
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|
Senior secured revolving loan ($1,600 par due 3/2013) |
|
5.81% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,600 |
|
1,440 |
|
$ |
0.90 |
|
|
|
|
|
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|
|
Senior secured revolving loan ($1,920 par due 3/2013) |
|
5.81% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,920 |
|
1,728 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
Senior secured revolving loan ($1,120 par due 3/2013) |
|
6.25% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,120 |
|
1,008 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
Senior secured revolving loan ($1,152 par due 3/2013) |
|
5.80% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,152 |
|
1,037 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
Senior secured revolving loan ($1,600 par due 3/2013) |
|
6.81% (Libor + 3.00%/Q) |
|
4/4/06 |
|
1,600 |
|
1,440 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GG Merger Sub I, Inc. |
|
Drug testing services |
|
Senior secured loan ($23,330 par due 12/2014) |
|
8.36% (Libor + 4.00%/S) |
|
12/14/07 |
|
22,390 |
|
21,930 |
|
0.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HCP Acquisition Holdings, LLC (7) |
|
Healthcare compliance advisory services |
|
Class A units (8,567,000 units) |
|
|
|
6/26/08 |
|
8,567 |
|
8,567 |
|
$ |
1.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heartland Dental Care, Inc. |
|
Dental services |
|
Senior subordinated note ($40,217 par due 8/2013) |
|
11.00% Cash, 3.25% PIK |
|
7/31/08 |
|
40,217 |
|
40,217 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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%/S) |
|
1/31/07 |
|
20,000 |
|
10,000 |
|
$ |
0.50 |
|
|
|
|
|
|
|
|
Junior secured loan ($12,000 par due 1/2014) |
|
9.19% (Libor + 6.25%/S) |
|
1/31/07 |
|
12,000 |
|
6,000 |
|
$ |
0.50 |
(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 ($32,053 par due 8/2013) |
|
11.00% Cash, 1.50% PIK |
|
8/18/06 |
|
32,053 |
|
30,426 |
|
$ |
0.95 |
(4) |
|
|
|
|
|
|
|
Senior secured loan ($3,083 par due 8/2009) |
|
6.00% (Libor + 3.50%/M) |
|
8/18/06 |
|
3,083 |
|
2,867 |
|
$ |
0.93 |
|
|
|
|
|
|
|
|
Common stock (857,143 shares) |
|
|
|
8/18/06 |
|
3,000 |
|
3,000 |
|
$ |
3.50 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passport Health Communications, Inc., Passport Holding Corp. and Prism Holding Corp. |
|
Healthcare technology provider |
|
Senior secured loan ($15,000 par due 5/2014) |
|
10.50% (Libor + 7.50%/S) |
|
5/9/08 |
|
15,000 |
|
15,000 |
|
$ |
1.00 |
|
|
|
4
|
|
|
|
|
Senior secured loan ($10,000 par due 5/2014) |
|
10.50% (Libor + 7.50%/S) |
|
5/9/08 |
|
10,000 |
|
10,000 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
|
Series A Preferred stock (1,594,457 shares) |
|
|
|
7/30/08 |
|
9,900 |
|
9,900 |
|
$ |
6.21 |
(5) |
|
|
|
|
|
|
|
Common stock (16,106 shares) |
|
|
|
7/30/08 |
|
100 |
|
100 |
|
$ |
6.21 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
Preferred stock (333 shares) |
|
|
|
3/12/08 |
|
333 |
|
333 |
|
$ |
1,000.00 |
(5) |
|
|
|
|
|
|
|
Common stock (16,667 shares) |
|
|
|
3/12/08 |
|
167 |
|
167 |
|
$ |
10.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Schumacher Group of Delaware, Inc. |
|
Outsourced physician service provider |
|
Senior subordinated loan ($35,000 par due 7/2012) |
|
11.00% Cash, 2.50% PIK |
|
7/18/08 |
|
35,000 |
|
35,000 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Triad Laboratory Alliance, LLC |
|
Laboratory services |
|
Senior subordinated note ($15,288 par due 12/2012) |
|
12.00% cash, 1.75% PIK |
|
12/21/05 |
|
15,288 |
|
15,288 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
Senior secured loan ($2,479 par due 12/2011) |
|
7.01% (Libor + 3.25%/Q) |
|
12/21/05 |
|
2,478 |
|
2,206 |
|
$ |
0.89 |
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VOTC Acquisition Corp. |
|
Provider of expert cancer care and treatment |
|
Senior secured loan ($2,982 par due 7/2012) |
|
11.00% Cash, 2.00% PIK |
|
6/30/08 |
|
2,982 |
|
2,982 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
Senior secured loan ($14,000 par due 7/2012) |
|
11.00% Cash, 2.00% PIK |
|
6/30/08 |
|
14,000 |
|
14,000 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
Series E preferred shares (3,888,222 shares) |
|
|
|
7/14/08 |
|
8,749 |
|
8,749 |
|
$ |
2.25 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
460,850 |
|
422,589 |
|
|
|
33.91% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage, Food and Tobacco |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3091779 Nova Scotia Inc. |
|
Baked goods manufacturer |
|
Junior secured loan (Cdn$14,000 par due 11/2012) |
|
11.50% Cash, 1.50% PIK |
|
11/2/07 |
|
14,850 |
|
12,494 |
|
$ |
0.95 |
(4)(12) |
|
|
|
|
|
|
|
Warrants to purchase 57,545 shares |
|
|
|
|
|
— |
|
— |
|
$ |
— |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apple & Eve, LLC and US Juice Partners, LLC (6) |
|
Juice manufacturer |
|
Senior secured revolving loan ($2,000 par due 10/2013) |
|
9.73% (Libor + 6.00%/B) |
|
10/5/07 |
|
2,000 |
|
1,800 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
Senior secured revolving loan ($500 par due 10/2013) |
|
8.49% (Libor + 6.00%/M) |
|
10/5/07 |
|
500 |
|
450 |
|
$ |
0.90 |
|
|
|
5
|
|
|
|
|
Senior secured revolving loan ($1,000 par due 10/2013) |
|
8.49% (Libor + 6.00%/M) |
|
10/5/07 |
|
1,000 |
|
900 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
Senior secured loan ($10,979 par due 10/2013) |
|
9.05% (Libor + 6.00%/S) |
|
10/5/07 |
|
10,979 |
|
9,881 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
Senior secured loan (716 par due 10/2013) |
|
8.80% (Libor + 6.00%/M) |
|
10/5/07 |
|
716 |
|
644 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
Senior secured loan ($21,695 par due 10/2013) |
|
9.05% (Libor + 6.00%/S) |
|
10/5/07 |
|
21,965 |
|
19,768 |
|
$ |
0.90 |
(2) |
|
|
|
|
|
|
|
Senior secured loan ($11,880 par due 10/2013) |
|
9.05% (Libor + 6.00%/S) |
|
10/5/07 |
|
11,880 |
|
10,692 |
|
$ |
0.90 |
(3) |
|
|
|
|
|
|
|
Senior units (50,000 units) |
|
|
|
10/5/07 |
|
5,000 |
|
4,000 |
|
$ |
80.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Best Brands Corporation |
|
Baked goods manufacturer |
|
Senior secured loan ($6,972 par due 12/2012) |
|
11.49% (Libor + 4.50% Cash + 4.50% PIK/M) |
|
2/15/2008 |
|
6,972 |
|
6,474 |
|
$ |
0.85 |
(4) |
|
|
|
|
|
|
|
Junior secured loan ($1,044 par due 6/2013) |
|
10.00% Cash, 8.00% PIK |
|
12/14/06 |
|
1,044 |
|
888 |
|
$ |
0.85 |
(4) |
|
|
|
|
|
|
|
Junior secured loan ($28,716 par due 6/2013) |
|
10.00% Cash, 8.00% PIK |
|
12/14/06 |
|
28,716 |
|
24,406 |
|
$ |
0.85 |
(2)(4) |
|
|
|
|
|
|
|
Junior secured loan ($11,845 par due 6/2013) |
|
10.00% Cash, 8.00% PIK |
|
12/14/06 |
|
11,845 |
|
10,068 |
|
$ |
0.85 |
(3)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charter Baking Company, Inc. |
|
Baked goods manufacturer |
|
Senior subordinated note ($5,388 par due 2/2013) |
|
12.00% PIK |
|
2/6/08 |
|
5,388 |
|
5,388 |
|
$ |
1.03 |
(2)(4) |
|
|
|
|
|
|
|
Preferred stock (6,258 shares) |
|
|
|
9/1/06 |
|
2,500 |
|
2,500 |
|
$ |
399.48 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTG Management, Inc. |
|
Airport restaurant operator |
|
Junior secured loan ($10,252 par due 6/2013) |
|
18.00% (Libor + 11.00% Cash, 4.00% PIK/Q) |
|
6/19/08 |
|
10,252 |
|
10,252 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
Junior secured loan ($4,905 par due 6/2013) |
|
18.00% (Libor + 11.00% Cash, 4.00% PIK/Q) |
|
6/19/08 |
|
4,905 |
|
4,905 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
Warrants to purchase up to 9 shares of common stock |
|
|
|
|
|
— |
|
— |
|
$ |
— |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vistar Corporation and Wellspring Distribution Corp. |
|
Foodservice distributor |
|
Senior subordinated loan ($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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
221,637 |
|
206,635 |
|
|
|
16.58% |
|
|
6
|
Education |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Campus Management Corp. and Campus |
|
Education software developer |
|
Senior secured revolving loan ($700 par due 8/2013) |
|
11.00% |
|
2/8/08 |
|
700 |
|
700 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management Acquisition Corp. (6) |
|
|
|
Senior secured loan ($19,810 par due 8/2013) |
|
11.00% |
|
2/8/08 |
|
19,810 |
|
19,810 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
Senior secured loan ($24,965 par due 8/2013) |
|
11.00% |
|
2/8/08 |
|
24,965 |
|
24,965 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
|
Preferred stock (431,408 shares) |
|
8.00% PIK |
|
2/8/08 |
|
7,831 |
|
7,831 |
|
$ |
18.15 |
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELC Acquisition Corporation |
|
Developer, manufacturer and retailer of educational products |
|
Senior secured loan ($263 par due 11/2012) |
|
6.06% (Libor + 3.25%/Q) |
|
11/30/06 |
|
263 |
|
263 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
|
Junior secured loan ($8,333 par due 11/2013) |
|
10.21% (Libor + 7.00%/Q) |
|
11/30/06 |
|
8,333 |
|
8,333 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instituto de Banca y Comercio, Inc. (8) |
|
Private school operator |
|
Senior secured loan ($7,500 par due 3/2014) |
|
7.80% (Libor + 5.00%/Q) |
|
3/15/07 |
|
7,500 |
|
7,500 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
Senior secured loan ($7,284 par due 3/2014) |
|
7.80% (Libor + 5.00%/Q) |
|
3/15/07 |
|
7,284 |
|
7,284 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
Senior secured loan ($5,000 par due 3/2014) |
|
7.80% (Libor + 5.00%/Q) |
|
3/15/07 |
|
5,000 |
|
5,000 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
|
Senior secured loan ($11,850 par due 3/2014) |
|
7.80% (Libor + 5.00%/Q) |
|
3/15/07 |
|
11,850 |
|
11,850 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
|
Senior subordinated loan ($19,471 par due 6/2014) |
|
10.50% Cash, 3.50% PIK |
|
6/4/08 |
|
19,470 |
|
19,470 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
Promissory note ($429 par due 9/2015) |
|
6.00% |
|
6/4/08 |
|
429 |
|
1,206 |
|
$ |
2.81 |
|
|
|
|
|
|
|
|
Preferred stock (214,286 shares) |
|
|
|
6/4/08 |
|
1,018 |
|
2,864 |
|
$ |
13.36 |
(5) |
|
|
|
|
|
|
|
Common stock (214,286 shares) |
|
|
|
6/4/08 |
|
54 |
|
151 |
|
$ |
0.70 |
(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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R3 Education, Inc. (formerly known as Equinox EIC |
|
Medical school operator |
|
Senior secured revolving loan ($4,000 par due 12/2012) |
|
8.79% (Libor + 6.00%/Q) |
|
4/3/07 |
|
4,000 |
|
4,000 |
|
$ |
1.00 |
|
|
|
7
|
Partners, LLC and MUA Management Company, Ltd.) (7)(8) |
|
|
|
Senior secured revolving loan ($4,900 par due 12/2012) |
|
10.00% (Base Rate + 5.00%/D) |
|
4/3/07 |
|
4,900 |
|
4,900 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
Senior secured revolving loan ($400 par due 12/2012) |
|
10.00% (Base Rate + 5.00%/D) |
|
4/3/07 |
|
400 |
|
400 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
Senior secured loan ($3,637 par due 12/2012) |
|
9.19% (Libor + 6.00%/S) |
|
4/3/07 |
|
3,637 |
|
3,637 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
|
Senior secured loan ($14,113 par due 12/2012) |
|
9.48% (Libor + 6.00%/Q) |
|
9/21/07 |
|
14,113 |
|
14,113 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
|
Senior secured loan ($7,350 par due 12/2012) |
|
9.09% (Libor + 6.00%/S) |
|
4/3/07 |
|
7,350 |
|
7,350 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
|
Senior secured loan ($25 par due 12/2012) |
|
10.00% (Base Rate + 5.00%/D) |
|
4/3/07 |
|
25 |
|
25 |
|
$ |
1.00 |
(3) |
|
|
|
|
|
|
|
Common membership interest (26.27% interest) |
|
|
|
9/21/07 |
|
15,800 |
|
20,800 |
|
|
(5) |
|
|
|
|
|
|
|
|
Preferred stock (800 shares) |
|
|
|
|
|
200 |
|
200 |
|
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
197,932 |
|
205,652 |
|
|
|
16.50 |
% |
|
8
|
Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Abingdon Investments Limited (6)(8)(9) |
|
Investment company |
|
Ordinary shares (948,500 shares) |
|
|
|
12/15/06 |
|
9,033 |
|
5,995 |
|
$ |
6.32 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CIC Flex, LP (9) |
|
Investment partnership |
|
Limited partnership units (1 unit) |
|
|
|
9/7/07 |
|
28 |
|
28 |
|
$ |
50,000.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covestia Capital Partners, LP (9) |
|
Investment partnership |
|
Limited partnership interest (47% interest) |
|
|
|
6/17/08 |
|
1,059 |
|
1,059 |
|
$ |
1.00 |
(5) |
|
|
9
|
Firstlight Financial Corporation (6)(9) |
|
Investment company |
|
Senior subordinated loan ($69,910 par due 12/2016) |
|
10.00% PIK |
|
12/31/06 |
|
69,910 |
|
69,910 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
Common stock (10,000 shares) |
|
|
|
12/31/06 |
|
10,000 |
|
3,750 |
|
$ |
375.00 |
(5) |
|
|
|
|
|
|
|
Common stock (30,000 shares) |
|
|
|
12/31/06 |
|
30,000 |
|
11,250 |
|
$ |
375.00 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ivy Hill Middle Market Credit Fund, Ltd. (7)(8)(9) |
|
Investment company |
|
Class B 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 |
|
14,398 |
|
$ |
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 |
|
|
|
|
|
|
|
|
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, LP (9) |
|
Investment partnership |
|
Limited partnership interest (25% interest) |
|
|
|
6/16/06 |
|
2,364 |
|
2,364 |
|
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trivergance Capital Partners, LP (9) |
|
Investment partnership |
|
Limited partnership interest (100% interest) |
|
|
|
6/5/08 |
|
387 |
|
387 |
|
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VSC Investors LLC (9) |
|
Investment company |
|
Membership interest (4.63% interest) |
|
|
|
1/24/08 |
|
302 |
|
302 |
|
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
194,667 |
|
165,027 |
|
|
|
13.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apogee Retail, LLC |
|
For-profit thrift retailer |
|
Senior secured loan ($10,849 par due 11/2012) |
|
12.00% Cash, 4.00% PIK |
|
5/28/08 |
|
10,849 |
|
10,849 |
|
$ |
1.00 |
(4) |
|
|
|
|
|
|
|
Senior secured loan ($2,307 par due 3/2012) |
|
8.71% (Libor + 5.25%/S) |
|
3/27/07 |
|
2,307 |
|
2,238 |
|
$ |
0.97 |
|
|
|
|
|
|
|
|
Senior secured loan ($24,637 par due 3/2012) |
|
8.71% (Libor + 5.25%/S) |
|
3/27/07 |
|
24,637 |
|
23,898 |
|
$ |
0.97 |
(2) |
|
|
|
|
|
|
|
Senior secured loan ($11,790 par due 3/2012) |
|
8.71% (Libor + 5.25%/S) |
|
3/27/07 |
|
11,790 |
|
11,436 |
|
$ |
0.97 |
(3) |
|
|
|
|
|
|
|
Senior secured loan ($6 par due 3/2012) |
|
8.46% (Libor + 5.25%/Q) |
|
3/27/07 |
|
6 |
|
6 |
|
$ |
0.97 |
|
|
|
10
|
|
|
|
|
Senior secured loan ($63 par due 3/2012) |
|
8.46% (Libor + 5.25%/Q) |
|
3/27/07 |
|
63 |
|
61 |
|
$ |
0.97 |
(2) |
|
|
|
|
|
|
|
|
Senior secured loan ($30 par due 3/2012) |
|
8.46% (Libor + 5.25%/Q) |
|
3/27/07 |
|
30 |
|
29 |
|
$ |
0.97 |
(3) |
|
|
|
|
|
|
|
|
Senior secured loan ($4,876 par due 3/2012) |
|
8.03% (Libor + 5.25%/S) |
|
3/27/07 |
|
4,876 |
|
4,730 |
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Hudson Group, Inc. and Advent - Hudson, LLC |
|
Retail newsstand operator |
|
Junior secured loan ($35,272 par due 3/2015) |
|
11.50% Cash, 1.50% PIK |
|
3/28/08 |
|
35,272 |
|
38,034 |
|
$ |
1.08 |
(4) |
|
|
|
|
|
|
|
|
Common stock (6,057,000 shares) |
|
|
|
3/28/08 |
|
3,000 |
|
3,000 |
|
$ |
0.50 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Savers, Inc. and SAI Acquisition Corporation |
|
For-profit thrift retailer |
|
Senior subordinated note ($6,000 par due 8/2014) |
|
10.00% cash, 2.00% PIK |
|
8/8/06 |
|
6,000 |
|
5,880 |
|
$ |
0.98 |
(4) |
|
|
|
|
|
|
|
|
Senior subordinated note ($22,000 par due 8/2014) |
|
10.00% cash, 2.00% PIK |
|
8/8/06 |
|
22,000 |
|
21,560 |
|
$ |
0.98 |
(2)(4) |
|
|
|
|
|
|
|
|
Common stock (1,170,182 shares) |
|
|
|
8/8/06 |
|
4,500 |
|
5,300 |
|
$ |
4.53 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Things Remembered, Inc. and TRM Holdings Corporation |
|
Personalized gifts retailer |
|
Senior secured loan ($4,716 par due 9/2012) |
|
8.75% (Base Rate + 3.50%/D) |
|
9/28/06 |
|
4,716 |
|
4,480 |
|
$ |
0.95 |
(3) |
|
|
|
|
|
|
|
|
Senior secured loan ($14,024 par due 9/2012) |
|
10.75% (Base Rate + 5.75%/D) |
|
9/28/06 |
|
14,024 |
|
13,323 |
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
Senior secured loan ($14,024 par due 9/2012) |
|
10.75% (Base Rate + 5.75%/D) |
|
9/28/06 |
|
14,024 |
|
13,323 |
|
$ |
0.95 |
(2) |
|
|
|
|
|
|
|
|
Senior secured loan ($7,225 par due 9/2012) |
|
10.75% (Base Rate + 5.75%/D) |
|
9/28/06 |
|||||||||||