UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2010
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period to
Commission File No. 000-50697
ARES CAPITAL CORPORATION
(Exact name of Registrant as specified in its charter)
|
Maryland |
|
33-1089684 |
|
(State or other jurisdiction of |
|
(I.R.S. Employer |
|
incorporation or organization) |
|
Identification Number) |
280 Park Avenue, 22nd Floor, Building East, New York, NY 10017
(Address of principal executive office) (Zip Code)
(212) 750-7300
(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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o 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 |
|
Accelerated filer o |
|
|
|
|
|
Non-accelerated filer o |
|
Smaller reporting company o |
|
(Do not check if a smaller reporting company) |
|
|
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.
|
Class |
|
Outstanding at November 4, 2010 |
|
Common stock, $0.001 par value |
|
192,566,434 |
ARES CAPITAL CORPORATION
|
Part I. |
Financial Information |
|
|
|
|
|
|
Item 1. |
Financial Statements |
|
|
|
|
|
|
|
Consolidated Balance Sheet as of September 30, 2010 (unaudited) and December 31, 2009 |
1 |
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
Consolidated Schedule of Investments as of September 30, 2010 (unaudited) and December 31, 2009 |
3 |
|
|
|
|
|
|
39 |
|
|
|
|
|
|
|
40 |
|
|
|
|
|
|
|
41 |
|
|
|
|
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
62 |
|
|
|
|
|
|
79 |
||
|
|
|
|
|
80 |
||
|
|
|
|
|
|
||
|
|
|
|
|
80 |
||
|
|
|
|
|
81 |
||
|
|
|
|
|
81 |
||
|
|
|
|
|
81 |
||
|
|
|
|
|
81 |
||
|
|
|
|
|
81 |
||
|
|
|
|
|
81 |
ARES CAPITAL CORPORATION AND SUBSIDIARIES
(dollar amounts in thousands, except per share data)
|
|
|
As of |
|
||||
|
|
|
September 30, 2010 |
|
December 31, 2009 |
|
||
|
|
|
(unaudited) |
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
Investments at fair value (amortized cost of $4,174,139 and $2,376,384, respectively) |
|
|
|
|
|
||
|
Non-controlled/non-affiliate company investments |
|
$ |
2,343,641 |
|
$ |
1,568,423 |
|
|
Non-controlled affiliate company investments |
|
565,988 |
|
276,351 |
|
||
|
Controlled affiliate company investments |
|
1,240,161 |
|
327,040 |
|
||
|
Total investments at fair value |
|
4,149,790 |
|
2,171,814 |
|
||
|
Cash and cash equivalents |
|
134,362 |
|
99,227 |
|
||
|
Interest receivable |
|
88,184 |
|
28,019 |
|
||
|
Other assets |
|
59,845 |
|
14,455 |
|
||
|
Total assets |
|
$ |
4,432,181 |
|
$ |
2,313,515 |
|
|
LIABILITIES |
|
|
|
|
|
||
|
Debt |
|
$ |
1,524,143 |
|
$ |
969,465 |
|
|
Management and incentive fees payable |
|
33,241 |
|
66,495 |
|
||
|
Accounts payable and accrued expenses |
|
79,996 |
|
16,533 |
|
||
|
Interest and facility fees payable |
|
16,325 |
|
2,645 |
|
||
|
Payable for open trades |
|
— |
|
489 |
|
||
|
Total liabilities |
|
1,653,705 |
|
1,055,627 |
|
||
|
Commitments and contingencies (Note 6) |
|
|
|
|
|
||
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Common stock, par value $.001 per share, 300,000,000 common shares authorized, 192,566,434 and 109,944,674 common shares issued and outstanding, respectively |
|
193 |
|
110 |
|
||
|
Capital in excess of par value |
|
2,656,890 |
|
1,490,458 |
|
||
|
Accumulated (overdistributed) undistributed net investment income |
|
(25,264 |
) |
3,143 |
|
||
|
Accumulated net realized gain (loss) on investments, foreign currency transactions, extinguishment of debt and acquisitions |
|
171,454 |
|
(31,115 |
) |
||
|
Net unrealized loss on investments and foreign currency transactions |
|
(24,797 |
) |
(204,708 |
) |
||
|
Total stockholders’ equity |
|
2,778,476 |
|
1,257,888 |
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
4,432,181 |
|
$ |
2,313,515 |
|
|
NET ASSETS PER SHARE |
|
$ |
14.43 |
|
$ |
11.44 |
|
See accompanying notes to consolidated financial statements.
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(dollar amounts in thousands, except per share data)
|
|
|
For the three months ended |
|
For the nine months ended |
|
||||||||
|
|
|
September 30, 2010 |
|
September 30, 2009 |
|
September 30, 2010 |
|
September 30, 2009 |
|
||||
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
||||
|
INVESTMENT INCOME: |
|
|
|
|
|
|
|
|
|
||||
|
From non-controlled/non-affiliate company investments: |
|
|
|
|
|
|
|
|
|
||||
|
Interest from investments |
|
$ |
66,319 |
|
$ |
49,728 |
|
$ |
177,285 |
|
$ |
138,866 |
|
|
Capital structuring service fees |
|
8,122 |
|
— |
|
15,258 |
|
1,653 |
|
||||
|
Management fees |
|
1,711 |
|
29 |
|
4,261 |
|
29 |
|
||||
|
Dividend income |
|
1,381 |
|
525 |
|
3,299 |
|
1,568 |
|
||||
|
Interest from cash & cash equivalents |
|
47 |
|
35 |
|
75 |
|
245 |
|
||||
|
Other income |
|
1,094 |
|
1,501 |
|
3,648 |
|
4,198 |
|
||||
|
Total investment income from non-controlled/non-affiliate company investments |
|
78,674 |
|
51,818 |
|
203,826 |
|
146,559 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
From non-controlled affiliate company investments: |
|
|
|
|
|
|
|
|
|
||||
|
Interest from investments |
|
13,607 |
|
4,916 |
|
33,602 |
|
17,019 |
|
||||
|
Dividend income |
|
127 |
|
148 |
|
318 |
|
285 |
|
||||
|
Management fees |
|
75 |
|
63 |
|
363 |
|
1,380 |
|
||||
|
Other income |
|
63 |
|
140 |
|
485 |
|
308 |
|
||||
|
Total investment income from non-controlled affiliate company investments |
|
13,872 |
|
5,267 |
|
34,768 |
|
18,992 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
From controlled affiliate company investments: |
|
|
|
|
|
|
|
|
|
||||
|
Interest from investments |
|
27,908 |
|
2,255 |
|
62,545 |
|
7,348 |
|
||||
|
Capital structuring service fees |
|
12,489 |
|
— |
|
15,146 |
|
194 |
|
||||
|
Dividend income |
|
2,415 |
|
1,511 |
|
4,211 |
|
1,511 |
|
||||
|
Management fees |
|
2,652 |
|
— |
|
5,430 |
|
1,286 |
|
||||
|
Other income |
|
116 |
|
30 |
|
300 |
|
118 |
|
||||
|
Total investment income from controlled affiliate company investments |
|
45,580 |
|
3,796 |
|
87,632 |
|
10,457 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total investment income |
|
138,126 |
|
60,881 |
|
326,226 |
|
176,008 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
||||
|
Interest and credit facility fees |
|
22,755 |
|
5,721 |
|
54,453 |
|
18,603 |
|
||||
|
Incentive management fees |
|
17,805 |
|
8,227 |
|
40,922 |
|
23,764 |
|
||||
|
Base management fees |
|
15,436 |
|
7,508 |
|
35,574 |
|
22,502 |
|
||||
|
Professional fees |
|
3,233 |
|
2,044 |
|
9,191 |
|
5,749 |
|
||||
|
Administrative |
|
2,642 |
|
809 |
|
6,251 |
|
2,905 |
|
||||
|
Professional fees and other costs related to the acquisition of Allied Capital Corporation |
|
1,450 |
|
1,989 |
|
17,773 |
|
1,989 |
|
||||
|
Rent |
|
1,565 |
|
301 |
|
3,659 |
|
1,458 |
|
||||
|
Insurance |
|
539 |
|
313 |
|
1,433 |
|
988 |
|
||||
|
Depreciation |
|
252 |
|
167 |
|
662 |
|
505 |
|
||||
|
Directors fees |
|
198 |
|
134 |
|
476 |
|
370 |
|
||||
|
Other |
|
1,195 |
|
308 |
|
3,006 |
|
1,558 |
|
||||
|
Total expenses |
|
67,070 |
|
27,521 |
|
173,400 |
|
80,391 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET INVESTMENT INCOME BEFORE INCOME TAXES |
|
71,056 |
|
33,360 |
|
152,826 |
|
95,617 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income tax expense (benefit), including excise tax |
|
(164 |
) |
454 |
|
360 |
|
563 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET INVESTMENT INCOME |
|
71,220 |
|
32,906 |
|
152,466 |
|
95,054 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
||||
|
Net realized gains (losses): |
|
|
|
|
|
|
|
|
|
||||
|
Non-controlled/non-affiliate company investments |
|
1,225 |
|
12,049 |
|
10,998 |
|
9,887 |
|
||||
|
Non-controlled affiliate company investments |
|
9 |
|
— |
|
(3,725 |
) |
(482 |
) |
||||
|
Controlled affiliate company investments |
|
(6 |
) |
(13,705 |
) |
1,296 |
|
(13,705 |
) |
||||
|
Foreign currency transactions |
|
— |
|
— |
|
85 |
|
68 |
|
||||
|
Net realized gains (losses) |
|
1,228 |
|
(1,656 |
) |
8,654 |
|
(4,232 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net unrealized gains (losses): |
|
|
|
|
|
|
|
|
|
||||
|
Non-controlled/non-affiliate company investments |
|
17,509 |
|
(552 |
) |
113,590 |
|
1,336 |
|
||||
|
Non-controlled affiliate company investments |
|
16,064 |
|
14,916 |
|
35,152 |
|
3,644 |
|
||||
|
Controlled affiliate company investments |
|
23,934 |
|
17,699 |
|
31,321 |
|
10,773 |
|
||||
|
Foreign currency transactions |
|
— |
|
(37 |
) |
(152 |
) |
(55 |
) |
||||
|
Net unrealized gains (losses) |
|
57,507 |
|
32,026 |
|
179,911 |
|
15,698 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net realized and unrealized gains (losses) from investments and foreign currency transactions |
|
58,735 |
|
30,370 |
|
188,565 |
|
11,466 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAIN ON THE ACQUISITION OF ALLIED CAPITAL CORPORATION |
|
— |
|
— |
|
195,876 |
|
— |
|
||||
|
REALIZED GAIN (LOSS) ON EXTINGUISHMENT OF DEBT |
|
(1,578 |
) |
— |
|
(1,961 |
) |
26,543 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS |
|
$ |
128,377 |
|
$ |
63,276 |
|
$ |
534,946 |
|
$ |
133,063 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
BASIC AND DILUTED EARNINGS PER COMMON SHARE (Note 4) |
|
$ |
0.67 |
|
$ |
0.62 |
|
$ |
3.16 |
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING — BASIC AND DILUTED (Note 4) |
|
192,167,337 |
|
102,831,909 |
|
169,499,905 |
|
99,066,652 |
|
||||
See accompanying notes to consolidated financial statements.
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2010 (unaudited)
(dollar amounts in thousands, except per unit data)
|
Company(1) |
|
Industry |
|
Investment |
|
Interest(5)(10) |
|
Acquisition |
|
Amortized |
|
Fair |
|
Fair |
|
Percentage |
|
|||
|
Investment Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
AGILE Fund I, LLC (7) |
|
Investment partnership |
|
Member interest (0.50% interest) |
|
|
|
4/1/2010 |
|
$ |
264 |
|
$ |
217 |
|
|
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
BB&T Capital Partners/Windsor Mezzanine Fund, LLC (6) |
|
Investment partnership |
|
Member interest (32.59% interest) |
|
|
|
4/1/2010 |
|
12,877 |
|
15,190 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Callidus Debt Partners CDO Fund I, Ltd. (8) |
|
Investment company |
|
Class C notes ($18,800 par due 12/2013) |
|
4.59% |
|
4/1/2010 |
|
2,518 |
|
1,448 |
|
$ |
0.08 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Class D notes ($9,400 par due 12/2013) |
|
|
|
4/1/2010 |
|
— |
|
— |
|
$ |
— |
(13)(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
2,518 |
|
1,448 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Callidus Debt Partners CLO Fund III, Ltd. (8) |
|
Investment company |
|
Preferred shares (23,600,000 shares ) |
|
9.05% |
|
4/1/2010 |
|
4,753 |
|
6,874 |
|
$ |
0.31 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Callidus Debt Partners CLO Fund IV, Ltd. (8) |
|
Investment company |
|
Class D notes ($3,000 par due 4/2020) |
|
4.84% (Libor + 4.55%/Q) |
|
4/1/2010 |
|
1,789 |
|
1,741 |
|
$ |
0.58 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Subordinated notes ($17,500 par due 4/2020) |
|
14.03% |
|
4/1/2010 |
|
7,216 |
|
10,285 |
|
$ |
0.59 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
9,005 |
|
12,026 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Callidus Debt Partners CLO Fund V, Ltd. (8) |
|
Investment company |
|
Subordinated notes ($14,150 par due 11/2020) |
|
19.70% |
|
4/1/2010 |
|
8,692 |
|
11,096 |
|
$ |
0.78 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Callidus Debt Partners CLO Fund VI, Ltd. (8) |
|
Investment company |
|
Class D notes ($9,000 par due 10/2021) |
|
6.29% (Libor + 6.00%/Q) |
|
4/1/2010 |
|
3,962 |
|
4,241 |
|
$ |
0.47 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Subordinated notes ($25,500 par due 10/2021) |
|
18.39% |
|
4/1/2010 |
|
11,050 |
|
17,101 |
|
$ |
0.67 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
15,012 |
|
21,342 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Callidus Debt Partners CLO Fund VII, Ltd. (8) |
|
Investment company |
|
Subordinated notes ($28,000 par due 1/2021) |
|
13.27% |
|
4/1/2010 |
|
10,374 |
|
15,080 |
|
$ |
0.54 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Callidus MAPS CLO Fund I LLC |
|
Investment company |
|
Class E notes ($17,000 par due 12/2017) |
|
5.80% (Libor + 5.53%/Q) |
|
4/1/2010 |
|
11,679 |
|
11,244 |
|
$ |
0.66 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Subordinated Notes ($47,900 par due 12/2017) |
|
9.18% |
|
4/1/2010 |
|
13,419 |
|
17,946 |
|
$ |
0.37 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
25,098 |
|
29,190 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Callidus MAPS CLO Fund II, Ltd. |
|
Investment company |
|
Class D notes ($7,700 par due 7/2022) |
|
4.54% (Libor + 4.25%/Q) |
|
4/1/2010 |
|
3,324 |
|
4,049 |
|
$ |
0.53 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Subordinated notes ($17,900 par due 7/2022) |
|
19.30% |
|
4/1/2010 |
|
8,977 |
|
12,906 |
|
$ |
0.72 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
12,301 |
|
16,955 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Catterton Partners VI, L.P. |
|
Investment partnership |
|
Limited partnership interest (0.50% interest) |
|
|
|
4/1/2010 |
|
1,721 |
|
2,226 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
CIC Flex, LP (9) |
|
Investment partnership |
|
Limited partnership units (0.94 unit) |
|
|
|
9/7/2007 |
|
53 |
|
— |
|
$ |
— |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Cortec Group Fund IV, L.P. |
|
Investment partnership |
|
Limited partnership interest (2.53% interest) |
|
|
|
4/1/2010 |
|
4,628 |
|
4,355 |
|
|
(16) |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Covestia Capital Partners, LP (9) |
|
Investment partnership |
|
Limited partnership interest (47.00% interest) |
|
|
|
6/17/2008 |
|
1,059 |
|
982 |
|
|
(16) |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Dryden XVIII Leveraged Loan 2007 Limited (8) |
|
Investment company |
|
Class B notes ($9,000 par due 10/2019) |
|
4.79% (Libor + 4.50%/Q) |
|
4/1/2010 |
|
3,753 |
|
3,562 |
|
$ |
0.40 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Subordinated notes ($21,164 par due 10/2019) |
|
22.03% |
|
4/1/2010 |
|
12,715 |
|
16,486 |
|
$ |
0.78 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
16,468 |
|
20,048 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Dynamic India Fund IV |
|
Investment company |
|
Member interest (5.44% interest) |
|
|
|
4/1/2010 |
|
4,822 |
|
4,822 |
|
|
(16) |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Fidus Mezzanine Capital, L.P. |
|
Investment partnership |
|
Limited partnership interest (29.12% interest) |
|
|
|
4/1/2010 |
|
9,206 |
|
9,588 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Firstlight Financial Corporation (6)(9) |
|
Investment company |
|
Senior subordinated loan ($73,625 par due 12/2016) |
|
1.00% PIK |
|
12/31/2006 |
|
73,433 |
|
47,857 |
|
$ |
0.65 |
(4)(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Common stock (10,000 shares ) |
|
|
|
12/31/2006 |
|
10,000 |
|
— |
|
$ |
— |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Common stock (30,000 shares ) |
|
|
|
12/31/2006 |
|
30,000 |
|
— |
|
$ |
— |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
113,433 |
|
47,857 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
HCI Private Equity Managers, LP (7) (8) |
|
Investment company |
|
Member interest (100% interest) |
|
|
|
4/1/2010 |
|
808 |
|
973 |
|
$ |
0.81 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Ivy Hill Middle Market Credit Fund, Ltd. (7)(8)(9) |
|
Investment company |
|
Class B deferrable interest notes ($40,000 par due 11/2018) |
|
6.48% (Libor + 6.00%/Q) |
|
11/20/2007 |
|
15,351 |
|
14,737 |
|
$ |
0.96 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Subordinated notes ($15,351 par due 11/2018) |
|
15.50% |
|
11/20/2007 |
|
40,000 |
|
37,200 |
|
$ |
0.93 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
55,351 |
|
51,937 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Knightsbridge CLO 2007-1 Ltd. (7)(8) |
|
Investment company |
|
Class E notes ($20,350 par due 1/2022) |
|
9.29% (Libor + 9.00%/Q) |
|
3/24/2010 |
|
14,852 |
|
11,296 |
|
$ |
0.56 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Knightsbridge CLO 2008-1 Ltd. (7)(8) |
|
Investment company |
|
Class C notes ($14,400 par due 6/2018) |
|
7.79% (Libor + 7.50%/Q) |
|
3/24/2010 |
|
14,400 |
|
14,400 |
|
$ |
1.00 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Class D notes ($9,000 par due 6/2018) |
|
8.79% (Libor + 8.50%/Q) |
|
3/24/2010 |
|
9,000 |
|
9,000 |
|
$ |
1.00 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Class E notes ($14,850 par due 6/2018) |
|
5.29% (Libor + 5.00%/Q) |
|
3/24/2010 |
|
13,596 |
|
9,914 |
|
$ |
0.67 |
(16) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
36,996 |
|
33,314 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Kodiak Fund LP |
|
Investment partnership |
|
Limited partnership interest (1.52% interest) |
|
|
|
4/1/2010 |
|
932 |
|
784 |
|
|
|
|
|
|||
|
Novak Biddle Venture Partners III, L.P. |
|
Investment partnership |
|
Limited partnership interest (2.47% interest) |
|
|
|
4/1/2010 |
|
697 |
|
673 |
|
|
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pangaea CLO 2007-1 Ltd. (8) |
|
Investment company |
|
Class D notes ($15,000 par due 1/2021) |
|
5.04% (Libor + 4.75%/Q) |
|
4/1/2010 |
|
8,950 |
|
7,710 |
|
$ |
0.51 |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partnership Capital Growth Fund I, LP (9) |
|
Investment partnership |
|
Limited partnership interest (25% interest) |
|
|
|
6/16/2006 |
|
2,380 |
|
2,394 |
|
|
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Secured Loan Fund LLC (7) (15) |
|
Investment partnership |
|
Subordinated certificates ($411,173 par due 12/2015) |
|
(Libor + 8.00%/Q) |
|
10/30/2009 |
|
400,451 |
|
425,500 |
|
$ |
1.03 |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPP Mezzanine Funding II, L.P. |
|
Investment partnership |
|
Limited partnership interest (42.73% interest) |
|
|
|
4/1/2010 |
|
5,605 |
|
6,226 |
|
|
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trivergance Capital Partners, LP (9) |
|
Investment partnership |
|
Limited partnership interest (100% interest) |
|
|
|
6/5/2008 |
|
2,925 |
|
— |
|
|
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Webster Capital II, L.P. |
|
Investment partnership |
|
Limited partnership interest (2.44% interest) |
|
|
|
4/1/2010 |
|
1,220 |
|
1,227 |
|
|
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
783,451 |
|
761,330 |
|
|
|
27.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avborne, Inc. (7) |
|
Maintenance, repair and overhaul service provider |
|
Common stock (27,500 shares) |
|
|
|
4/1/2010 |
|
39 |
|
39 |
|
$ |
1.42 |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aviation Properties Corporation(7) |
|
Aviation services |
|
Common stock (100 shares) |
|
|
|
4/1/2010 |
|
— |
|
— |
|
$ |
— |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BenefitMall Holdings, Inc. |
|
Employee benefits broker services company |
|
Senior subordinated loan ($40,326 par due 6/2014) |
|
18.00% |
|
4/1/2010 |
|
40,326 |
|
40,326 |
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (39,274,290 shares ) |
|
|
|
4/1/2010 |
|
53,510 |
|
49,679 |
|
$ |
1.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants |
|
|
|
4/1/2010 |
|
— |
|
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93,836 |
|
90,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Booz Allen Hamilton, Inc. |
|
Strategy and technology consulting services |
|
Senior subordinated loan ($211 par due 7/2016) |
|
13.00% |
|
7/31/2008 |
|
185 |
|
186 |
|
$ |
0.88 |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior subordinated loan ($10,484 par due 7/2016) |
|
13.00% |
|
7/31/2008 |
|
10,423 |
|
10,509 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($735 par due 7/2015) |
|
7.50% (Libor + 4.50%/Q) |
|
7/31/2008 |
|
723 |
|
735 |
|
$ |
1.00 |
(3)(14) |
|
|
|
|
|
|
|
|
|
|
|
|
|
11,331 |
|
11,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CitiPostal Inc. (7) |
|
Document storage and management services |
|
Senior secured revolving loan ($691 par due 12/2013) |
|
6.50% (Libor + 4.50%/M) |
|
4/1/2010 |
|
691 |
|
691 |
|
$ |
1.00 |
(14)(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured revolving loan ($1,250 par due 12/2013) |
|
6.75% (Base Rate + 3.50%/Q) |
|
4/1/2010 |
|
1,250 |
|
1,250 |
|
$ |
1.00 |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($484 par due 12/2013) |
|
11.00% Cash, 2.00% PIK |
|
4/1/2010 |
|
484 |
|
484 |
|
$ |
1.00 |
(4)(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($49,585 par due 12/2013) |
|
11.00% Cash, 2.00% PIK |
|
4/1/2010 |
|
49,585 |
|
49,585 |
|
$ |
1.00 |
(2)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior subordinated loan ($12,034 par due 12/2015) |
|
16.00% PIK |
|
4/1/2010 |
|
12,034 |
|
12,034 |
|
$ |
1.00 |
(4)(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (37,024 shares ) |
|
|
|
4/1/2010 |
|
— |
|
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64,044 |
|
64,044 |
|
|
|
|
|
|
|
Cook Inlet Alternative Risk, LLC |
|
Risk management services |
|
Senior secured loan ($40,000 par due 4/2013) |
|
|
|
4/1/2010 |
|
25,124 |
|
25,114 |
|
$ |
0.63 |
(13)(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($47,600 par due 4/2013) |
|
|
|
4/1/2010 |
|
29,876 |
|
29,886 |
|
$ |
0.63 |
(13)(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member interest (3.17% interest) |
|
|
|
4/1/2010 |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55,000 |
|
55,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverall North America, Inc. (7) |
|
Commercial janitorial service provider |
|
Senior secured loan ($15,763 par due 7/2011) |
|
12.00% |
|
4/1/2010 |
|
15,763 |
|
15,763 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($15,864 par due 7/2011) |
|
12.00% |
|
4/1/2010 |
|
15,864 |
|
15,864 |
|
$ |
1.00 |
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior subordinated loan ($5,578 par due 7/2011) |
|
15.00% Cash, 1.00% PIK |
|
4/1/2010 |
|
5,574 |
|
1,290 |
|
$ |
0.23 |
(4)(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (763,333 shares) |
|
|
|
4/1/2010 |
|
2,999
|
|
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,200 |
|
32,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital VideoStream, LLC |
|
Media content supply chain services company |
|
Senior secured loan ($259 par due 2/2012) |
|
10.00% Cash, 1.00% PIK |
|
4/1/2010 |
|
259 |
|
259 |
|
$ |
1.00 |
(4)(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($9 par due 2/2012) |
|
10.00% Cash, 1.00% PIK |
|
4/1/2010 |
|
7 |
|
9 |
|
$ |
1.04 |
(2)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($10,626 par due 2/2012) |
|
10.00% Cash, 1.00% PIK |
|
4/1/2010 |
|
10,567 |
|
10,626 |
|
$ |
1.00 |
(2)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible subordinated loan ($5,403 par due 2/2016) |
|
10.00% PIK |
|
4/1/2010 |
|
5,838 |
|
5,713 |
|
$ |
1.06 |
(4)(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
16,671 |
|
16,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Collection Services, Inc. |
|
Collections services |
|
Senior secured loan ($7,000 par due 3/2012) |
|
7.50% (Libor + 5.50%/Q) |
|
4/1/2010 |
|
7,000 |
|
7,000 |
|
$ |
1.00 |
(3)(14) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($34,000 par due 9/2012) |
|
13.75% (Libor + 11.75%/Q) |
|
4/1/2010 |
|
34,000 |
|
34,000 |
|
$ |
1.00 |
(2)(14) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior secured loan ($2,000 par due 9/2012) |
|
13.75% (Libor + 11.75%/Q) |
|
4/1/2010 |
|
2,000 |
|
2,000 |
|
$ |
1.00 |
(3)(14) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock (14,927 shares) |
|
|
|
5/18/2006 |
|
169 |
|
284 |
|
$ |
19.03 |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (114,004 shares ) |
|
|
|
2/5/2005 |
|
295 |
|
520 |
|
$ |
4.56 |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (478,816 shares ) |
|
|
|
4/1/2010 |
|
1,478 |
|
1,721 |
|
$ |
3.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,942 |
|
45,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Mercury Communications, LLC |
|
Business media consulting services |
|
Senior secured loan ($1,957 par due 3/2013) |
|
8.00% (Base Rate + 4.50%/Q) |
|
4/1/2010 |
|
1,780 |
|
1,561 |
|
$ |
0.80 |
(14)(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact Innovations Group, LLC (7) |
|
IT consulting and outsourcing services |
|
Member interest (50% interest) |
|
|
|
4/1/2010 |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Group Services, LLC (6) |
|
Business consulting for private equity and corporate clients |
|
|||||||||||||||