Table of Contents

 

 

 

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, 2016

 

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. 814-00663

 

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)

 

245 Park Avenue, 44th Floor, New York, NY 10167

(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 October 28, 2016

Common stock, $0.001 par value

 

313,954,008

 

 

 



Table of Contents

 

ARES CAPITAL CORPORATION

 

INDEX

 

Part I.

Financial Information

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

Consolidated Balance Sheet as of September 30, 2016 (unaudited) and December 31, 2015

3

 

 

 

 

Consolidated Statement of Operations for the three and nine months ended September 30, 2016 and 2015 (unaudited)

4

 

 

 

 

Consolidated Schedule of Investments as of September 30, 2016 (unaudited) and December 31, 2015

6

 

 

 

 

Consolidated Statement of Stockholders’ Equity for the nine months ended September 30, 2016 (unaudited)

56

 

 

 

 

Consolidated Statement of Cash Flows for the nine months ended September 30, 2016 and 2015 (unaudited)

57

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

58

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

94

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

125

 

 

 

Item 4.

Controls and Procedures

126

 

 

 

Part II.

Other Information

 

 

 

 

Item 1.

Legal Proceedings

126

 

 

 

Item 1A.

Risk Factors

126

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

126

 

 

 

Item 3.

Defaults Upon Senior Securities

128

 

 

 

Item 4.

Mine Safety Disclosures

128

 

 

 

Item 5.

Other Information

128

 

 

 

Item 6.

Exhibits

128

 



Table of Contents

 

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in thousands, except per share data)

 

 

 

As of

 

 

 

September 30, 2016

 

December 31, 2015

 

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

Investments at fair value

 

 

 

 

 

Non-controlled/non-affiliate company investments

 

$

5,981,144

 

$

6,481,333

 

Non-controlled affiliate company investments

 

175,473

 

195,074

 

Controlled affiliate company investments

 

2,648,034

 

2,379,089

 

Total investments at fair value (amortized cost of $8,927,999 and $9,147,646, respectively)

 

8,804,651

 

9,055,496

 

Cash and cash equivalents

 

125,089

 

257,056

 

Interest receivable

 

120,665

 

137,968

 

Receivable for open trades

 

21,664

 

 

Other assets

 

63,789

 

56,292

 

Total assets

 

$

9,135,858

 

$

9,506,812

 

LIABILITIES

 

 

 

 

 

Debt

 

$

3,720,916

 

$

4,113,935

 

Base management fees payable

 

33,923

 

34,125

 

Income based fees payable

 

33,052

 

31,234

 

Capital gains incentive fees payable

 

50,963

 

42,265

 

Accounts payable and other liabilities

 

51,730

 

60,587

 

Interest and facility fees payable

 

32,170

 

51,007

 

Payable for open trades

 

4,125

 

327

 

Total liabilities

 

3,926,879

 

4,333,480

 

Commitments and contingencies (Note 7)

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock, par value $0.001 per share, 500,000 common shares authorized; 313,954 and 314,347 common shares issued and outstanding, respectively

 

314

 

314

 

Capital in excess of par value

 

5,312,800

 

5,318,277

 

Accumulated overdistributed net investment income

 

(3,262

)

(894

)

Accumulated net realized gains (losses) on investments, foreign currency transactions, extinguishment of debt and other assets

 

25,523

 

(53,013

)

Net unrealized losses on investments, foreign currency and other transactions

 

(126,396

)

(91,352

)

Total stockholders’ equity

 

5,208,979

 

5,173,332

 

Total liabilities and stockholders’ equity

 

$

9,135,858

 

$

9,506,812

 

NET ASSETS PER SHARE

 

$

16.59

 

$

16.46

 

 

See accompanying notes to consolidated financial statements.

 

3



Table of Contents

 

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

 

For the Three Months Ended
September 30,

 

For the Nine Months Ended
September 30,

 

 

 

2016

 

2015

 

2016

 

2015

 

INVESTMENT INCOME:

 

 

 

 

 

 

 

 

 

From non-controlled/non-affiliate company investments:

 

 

 

 

 

 

 

 

 

Interest income from investments

 

$

134,098

 

$

128,814

 

$

411,856

 

$

376,257

 

Capital structuring service fees

 

33,786

 

27,883

 

60,440

 

49,410

 

Dividend income

 

6,226

 

4,045

 

23,215

 

11,957

 

Other income

 

3,203

 

2,583

 

9,708

 

8,683

 

Total investment income from non-controlled/non-affiliate company investments

 

177,313

 

163,325

 

505,219

 

446,307

 

From non-controlled affiliate company investments:

 

 

 

 

 

 

 

 

 

Interest income from investments

 

4,211

 

3,629

 

12,155

 

10,948

 

Capital structuring service fees

 

 

 

 

2,205

 

Dividend income

 

 

38

 

40

 

1,407

 

Other income

 

49

 

66

 

275

 

196

 

Total investment income from non-controlled affiliate company investments

 

4,260

 

3,733

 

12,470

 

14,756

 

From controlled affiliate company investments:

 

 

 

 

 

 

 

 

 

Interest income from investments

 

61,525

 

75,494

 

186,968

 

220,660

 

Capital structuring service fees

 

1,249

 

1,885

 

2,425

 

21,416

 

Dividend income

 

10,000

 

10,000

 

30,250

 

40,099

 

Management and other fees

 

3,879

 

6,148

 

13,506

 

18,421

 

Other income

 

444

 

363

 

1,144

 

2,015

 

Total investment income from controlled affiliate company investments

 

77,097

 

93,890

 

234,293

 

302,611

 

Total investment income

 

258,670

 

260,948

 

751,982

 

763,674

 

EXPENSES:

 

 

 

 

 

 

 

 

 

Interest and credit facility fees

 

43,300

 

56,618

 

138,877

 

171,614

 

Base management fees

 

33,923

 

33,284

 

103,126

 

100,221

 

Income based fees

 

33,052

 

31,842

 

91,097

 

90,156

 

Capital gain incentive fees

 

(5,491

)

(2,628

)

8,698

 

834

 

Administrative fees

 

3,433

 

3,545

 

10,198

 

10,515

 

Professional fees and other costs related to the American Capital Acquisition

 

2,699

 

 

10,710

 

 

Other general and administrative

 

6,488

 

6,926

 

20,814

 

22,652

 

Total expenses

 

117,404

 

129,587

 

383,520

 

395,992

 

NET INVESTMENT INCOME BEFORE INCOME TAXES

 

141,266

 

131,361

 

368,462

 

367,682

 

Income tax expense, including excise tax

 

3,570

 

884

 

12,772

 

7,025

 

NET INVESTMENT INCOME

 

137,696

 

130,477

 

355,690

 

360,657

 

REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:

 

 

 

 

 

 

 

 

 

Net realized gains (losses):

 

 

 

 

 

 

 

 

 

Non-controlled/non-affiliate company investments

 

3,601

 

19,378

 

55,114

 

71,182

 

Non-controlled affiliate company investments

 

12,223

 

25,897

 

13,097

 

26,230

 

 

4



Table of Contents

 

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

 

For the Three Months Ended
September 30,

 

For the Nine Months Ended
September 30,

 

 

 

2016

 

2015

 

2016

 

2015

 

Controlled affiliate company investments

 

5,048

 

 

11,378

 

 

Foreign currency transactions

 

(310

)

2,462

 

(1,053

)

6,327

 

Net realized gains

 

20,562

 

47,737

 

78,536

 

103,739

 

Net unrealized gains (losses):

 

 

 

 

 

 

 

 

 

Non-controlled/non-affiliate company investments

 

(57,484

)

(23,322

)

(91,240

)

(47,050

)

Non-controlled affiliate company investments

 

(10,043

)

(29,859

)

11,724

 

(13,463

)

Controlled affiliate company investments

 

23,506

 

(7,920

)

48,490

 

(34,535

)

Foreign currency and other transactions

 

(3,996

)

(254

)

(4,018

)

(1,552

)

Net unrealized losses

 

(48,017

)

(61,355

)

(35,044

)

(96,600

)

Net realized and unrealized gains (losses) from investments, foreign currency and other transactions

 

(27,455

)

(13,618

)

43,492

 

7,139

 

REALIZED LOSSES ON EXTINGUISHMENT OF DEBT

 

 

 

 

(3,839

)

NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS

 

$

110,241

 

$

116,859

 

$

399,182

 

$

363,957

 

BASIC AND DILUTED EARNINGS PER COMMON SHARE (see Note 10)

 

$

0.35

 

$

0.37

 

$

1.27

 

$

1.16

 

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (see Note 10)

 

313,954

 

314,469

 

314,067

 

314,350

 

 

See accompanying notes to consolidated financial statements.

 

5



Table of Contents

 

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of September 30, 2016

(dollar amounts in thousands)

(unaudited)

 

Company(1)

 

Business Description

 

Investment

 

Interest(6)(12)

 

Acquisition
Date

 

Amortized
Cost

 

Fair Value

 

Percentage
of Net
Assets

 

Investment Funds and Vehicles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Covestia Capital Partners, LP (10)

 

Investment partnership

 

Limited partnership interest (47.00% interest)

 

 

 

6/17/2008

 

$

487

 

$

1,770

(2)

 

 

HCI Equity, LLC (8)(9)(10)

 

Investment company

 

Member interest (100.00% interest)

 

 

 

4/1/2010

 

 

128

 

 

 

Imperial Capital Private Opportunities, LP (10)(26)

 

Investment partnership

 

Limited partnership interest (80.00% interest)

 

 

 

5/10/2007

 

4,054

 

17,131

(2)

 

 

Partnership Capital Growth Fund I, L.P. (10)

 

Investment partnership

 

Limited partnership interest (25.00% interest)

 

 

 

6/16/2006

 

 

194

(2)

 

 

Partnership Capital Growth Investors III, L.P. (10)(26)

 

Investment partnership

 

Limited partnership interest (2.50% interest)

 

 

 

10/5/2011

 

2,655

 

3,039

(2)

 

 

PCG-Ares Sidecar Investment II, L.P. (10)(26)

 

Investment partnership

 

Limited partnership interest (100.00% interest)

 

 

 

10/31/2014

 

7,456

 

11,430

(2)

 

 

PCG-Ares Sidecar Investment, L.P. (10)(26)

 

Investment partnership

 

Limited partnership interest (100.00% interest)

 

 

 

5/22/2014

 

3,355

 

2,796

(2)

 

 

Piper Jaffray Merchant Banking Fund I, L.P. (10)(26)

 

Investment partnership

 

Limited partnership interest (2.00% interest)

 

 

 

8/16/2012

 

1,664

 

1,491

 

 

 

Senior Direct Lending Program, LLC (8)(10)(28)

 

Co-investment vehicle

 

Subordinated certificates ($195,338 par due 12/2036)

 

8.86% (Libor + 8.00%/M)(22)

 

7/27/2016

 

195,338

 

195,338

 

 

 

 

 

 

 

Member interest (87.50% interest)

 

 

 

7/27/2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

195,338

 

195,338

 

 

 

Senior Secured Loan Fund LLC (8)(11)(27)

 

Co-investment vehicle

 

Subordinated certificates ($2,003,959 par due 12/2024)

 

8.86% (Libor + 8.00%/M)(21)

 

10/30/2009

 

1,938,446

 

1,899,754

 

 

 

 

 

 

 

Member interest (87.50% interest)

 

 

 

10/30/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,938,446

 

1,899,754

 

 

 

VSC Investors LLC (10)

 

Investment company

 

Membership interest (1.95% interest)

 

 

 

1/24/2008

 

299

 

1,124

(2)

 

 

 

 

 

 

 

 

 

 

 

 

2,153,754

 

2,134,195

 

40.97

%

Healthcare Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Absolute Dental Management LLC and ADM Equity, LLC

 

Dental services provider

 

First lien senior secured loan ($18,750 par due 1/2022)

 

9.06% (Libor + 8.06%/Q)

 

1/5/2016

 

18,750

 

18,188

(3)(20)

 

 

 

 

 

 

First lien senior secured loan ($5,000 par due 1/2022)

 

9.06% (Libor + 8.06%/Q)

 

1/5/2016

 

5,000

 

4,850

(4)(20)

 

 

 

 

 

 

Class A preferred units (4,000,000 units)

 

 

 

1/5/2016

 

4,000

 

1,901

(2)

 

 

 

 

 

 

Class A common units (4,000,000 units)

 

 

 

1/5/2016

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

27,750

 

24,939

 

 

 

ADCS Billings Intermediate Holdings, LLC (25)

 

Dermatology practice

 

First lien senior secured revolving loan ($1,375 par due 5/2022)

 

8.25%(Base Rate + 4.75%/Q)

 

5/18/2016

 

1,375

 

1,375

(2)(20)(24)

 

 

ADG, LLC and RC IV GEDC Investor LLC (25)

 

Dental services provider

 

First lien senior secured revolving loan ($2,117 par due 9/2022)

 

5.75% (Libor + 4.75%/Q)

 

9/28/2016

 

2,117

 

2,117

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($33,388 par due 9/2023)

 

5.75% (Libor + 4.75%/Q)

 

9/28/2016

 

33,387

 

33,387

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($87,500 par due 3/2024)

 

10.00% (Libor + 9.00%/Q)

 

9/28/2016

 

87,500

 

87,500

(2)(20)

 

 

 

 

 

 

Membership units (3,000,000 units)

 

 

 

9/28/2016

 

3,000

 

3,000

(2)

 

 

 

 

 

 

 

 

 

 

 

 

126,004

 

126,004

 

 

 

Alegeus Technologies Holdings Corp.

 

Benefits administration and transaction processing provider

 

Preferred stock (2,997 shares)

 

 

 

12/13/2013

 

3,087

 

1,793

 

 

 

 

 

 

 

Common stock (3 shares)

 

 

 

12/13/2013

 

3

 

 

 

 

 

6



Table of Contents

 

As of September 30, 2016

(dollar amounts in thousands)

(unaudited)

 

Company(1)

 

Business Description

 

Investment

 

Interest(6)(12)

 

Acquisition
Date

 

Amortized
Cost

 

Fair Value

 

Percentage
of Net
Assets

 

 

 

 

 

 

 

 

 

 

 

3,090

 

1,793

 

 

 

Argon Medical Devices, Inc.

 

Manufacturer and marketer of single-use specialty medical devices

 

Second lien senior secured loan ($9,000 par due 6/2022)

 

10.50% (Libor + 9.50%/Q)

 

12/23/2015

 

8,758

 

9,000

(2)(20)

 

 

AwarePoint Corporation

 

Healthcare technology platform developer

 

First lien senior secured loan ($8,772 par due 6/2018)

 

10.50% (Libor + 9.50%/M)

 

9/5/2014

 

8,548

 

8,772

(2)(20)

 

 

 

 

 

 

Warrant to purchase up to 3,213,367 shares of Series 1 preferred stock (expires 9/2024)

 

 

 

11/14/2014

 

 

609

(2)

 

 

 

 

 

 

 

 

 

 

 

 

8,548

 

9,381

 

 

 

CCS Intermediate Holdings, LLC and CCS Group Holdings, LLC (25)

 

Correctional facility healthcare operator

 

First lien senior secured revolving loan ($3,750 par due 7/2019)

 

5.00% (Libor + 4.00%/Q)

 

7/23/2014

 

3,750

 

3,188

(2)(20)(24)

 

 

 

 

 

 

First lien senior secured revolving loan ($1,620 par due 7/2019)

 

6.50%(Base Rate + 3.00%/Q)

 

7/23/2014

 

1,620

 

1,377

(2)(20)(24)

 

 

 

 

 

 

First lien senior secured loan ($6,601 par due 7/2021)

 

5.00% (Libor + 4.00%/Q)

 

7/23/2014

 

6,579

 

5,611

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($135,000 par due 7/2022)

 

9.38% (Libor + 8.38%/Q)

 

7/23/2014

 

134,017

 

101,250

(2)(20)

 

 

 

 

 

 

Class A units (601,937 units)

 

 

 

8/19/2010

 

 

215

(2)

 

 

 

 

 

 

 

 

 

 

 

 

145,966

 

111,641

 

 

 

Correctional Medical Group Companies, Inc.

 

Correctional facility healthcare operator

 

First lien senior secured loan ($3,088 par due 9/2021)

 

9.39% (Libor + 8.39%/Q)

 

9/29/2015

 

3,088

 

3,026

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($4,093 par due 9/2021)

 

9.39% (Libor + 8.39%/Q)

 

9/29/2015

 

4,093

 

4,011

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($44,707 par due 9/2021)

 

9.39% (Libor + 8.39%/Q)

 

9/29/2015

 

44,707

 

43,813

(3)(20)

 

 

 

 

 

 

 

 

 

 

 

 

51,888

 

50,850

 

 

 

DCA Investment Holding, LLC (25)

 

Multi-branded dental practice management

 

First lien senior secured revolving loan ($5,774 par due 7/2021)

 

7.75%(Base Rate + 4.25%/Q)

 

7/2/2015

 

5,774

 

5,659

(2)(20)(24)

 

 

 

 

 

 

First lien senior secured loan ($18,945 par due 7/2021)

 

6.25% (Libor + 5.25%/Q)

 

7/2/2015

 

18,831

 

18,566

(4)(20)

 

 

 

 

 

 

 

 

 

 

 

 

24,605

 

24,225

 

 

 

DNAnexus, Inc.

 

Bioinformatics company

 

First lien senior secured loan ($10,075 par due 10/2018)

 

9.25% (Libor + 8.25%/M)

 

3/21/2014

 

9,861

 

10,075

(2)(20)

 

 

 

 

 

 

Warrant to purchase up to 909,092 units of Series C preferred stock (expires 3/2024)

 

 

 

3/21/2014

 

 

121

(2)

 

 

 

 

 

 

 

 

 

 

 

 

9,861

 

10,196

 

 

 

Global Healthcare Exchange, LLC and GHX Ultimate Parent Corp.

 

On-demand supply chain automation solutions provider

 

Second lien senior secured loan ($47,500 par due 8/2023)

 

9.75% (Libor + 8.75%/Q)

 

8/18/2016

 

46,787

 

47,500

(2)(20)

 

 

 

 

 

 

Class A common stock (1,788 shares)

 

 

 

3/11/2014

 

1,788

 

1,788

(2)

 

 

 

 

 

 

Class B common stock (980 shares)

 

 

 

3/11/2014

 

30

 

5,244

(2)

 

 

 

 

 

 

 

 

 

 

 

 

48,605

 

54,532

 

 

 

Greenphire, Inc. and RMCF III CIV XXIX, L.P (25)

 

Software provider for clinical trial management

 

First lien senior secured loan ($1,500 par due 12/2018)

 

9.00% (Libor + 8.00%/M)

 

12/19/2014

 

1,500

 

1,500

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($3,800 par due 12/2018)

 

9.00% (Libor + 8.00%/M)

 

12/19/2014

 

3,800

 

3,800

(2)(20)

 

 

 

 

 

 

Limited partnership interest (99.90% interest)

 

 

 

12/19/2014

 

999

 

1,590

(2)

 

 

 

 

 

 

 

 

 

 

 

 

6,299

 

6,890

 

 

 

Hygiena Borrower LLC (25)

 

Adenosine triphosphate testing technology provider

 

Second lien senior secured loan ($10,000 par due 8/2023)

 

10.00% (Libor + 9.00%/Q)

 

8/26/2016

 

10,000

 

10,000

(2)(20)

 

 

INC Research Mezzanine Co-Invest, LLC

 

Pharmaceutical and biotechnology consulting services

 

Common units (1,410,000 units)

 

 

 

9/27/2010

 

 

738

(2)

 

 

Intermedix Corporation

 

Revenue cycle management provider to the emergency healthcare industry

 

Second lien senior secured loan ($112,000 par due 6/2020)

 

9.25% (Libor + 8.25%/Q)

 

12/27/2012

 

112,000

 

107,520

(2)(20)

 

 

Island Medical Management Holdings, LLC (25)

 

Provider of physician management services

 

First lien senior secured revolving loan ($250 par due 9/2021)

 

6.00% (Libor + 5.00%/Q)

 

9/1/2016

 

250

 

250

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($382 par due 9/2022)

 

6.00% (Libor + 5.00%/Q)

 

9/1/2016

 

382

 

382

(2)(20)

 

 

 

7



Table of Contents

 

As of September 30, 2016

(dollar amounts in thousands)

(unaudited)

 

Company(1)

 

Business Description

 

Investment

 

Interest(6)(12)

 

Acquisition
Date

 

Amortized
Cost

 

Fair Value

 

Percentage
of Net
Assets

 

 

 

 

 

First lien senior secured loan ($6,228 par due 9/2022)

 

6.00% (Libor + 5.00%/Q)

 

9/1/2016

 

6,228

 

6,228

(2)(20)

 

 

 

 

 

 

 

 

 

 

 

 

6,860

 

6,860

 

 

 

MC Acquisition Holdings I, LLC

 

Healthcare professional provider

 

Class A units (1,338,314 shares)

 

 

 

1/17/2014

 

1,338

 

1,170

(2)

 

 

MW Dental Holding Corp. (25)

 

Dental services provider

 

First lien senior secured revolving loan ($1,000 par due 4/2018)

 

8.50% (Libor + 7.00%/Q)

 

4/12/2011

 

1,000

 

1,000

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($44,972 par due 4/2018)

 

8.50% (Libor + 7.00%/Q)

 

4/12/2011

 

44,972

 

44,972

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($47,373 par due 4/2018)

 

8.50% (Libor + 7.00%/Q)

 

4/12/2011

 

47,373

 

47,373

(3)(20)

 

 

 

 

 

 

First lien senior secured loan ($19,591 par due 4/2018)

 

8.50% (Libor + 7.00%/Q)

 

4/12/2011

 

19,591

 

19,591

(4)(20)

 

 

 

 

 

 

 

 

 

 

 

 

112,936

 

112,936

 

 

 

My Health Direct, Inc. (25)

 

Healthcare scheduling exchange software solution provider

 

First lien senior secured loan ($1,600 par due 1/2018)

 

10.75%

 

9/18/2014

 

1,581

 

1,600

(2)

 

 

 

 

 

 

Warrant to purchase up to 4,548 shares of Series D preferred stock (expires 9/2024)

 

 

 

9/18/2014

 

39

 

40

(2)

 

 

 

 

 

 

 

 

 

 

 

 

1,620

 

1,640

 

 

 

New Trident Holdcorp, Inc.

 

Outsourced mobile diagnostic healthcare service provider

 

Second lien senior secured loan ($80,000 par due 7/2020)

 

10.25% (Libor + 9.00%/Q)

 

8/6/2013

 

79,085

 

76,000

(2)(20)

 

 

NMSC Holdings, Inc. and ASP NAPA Holdings, LLC

 

Anesthesia management services provider

 

Second lien senior secured loan ($72,796 par due 10/2023)

 

11.00% (Libor + 10.00%/Q)

 

4/19/2016

 

72,796

 

72,796

(2)(20)

 

 

 

 

 

 

Class A units (25,277 units)

 

 

 

4/19/2016

 

2,528

 

2,488

(2)

 

 

 

 

 

 

 

 

 

 

 

 

75,324

 

75,284

 

 

 

Nodality, Inc.

 

Biotechnology company

 

First lien senior secured loan ($2,743 par due 8/2016)

 

 

 

11/12/2015

 

2,533

 

2,585

(2)(19)

 

 

 

 

 

 

First lien senior secured loan ($10,885 par due 8/2016)

 

 

 

4/25/2014

 

9,694

 

773

(2)(19)

 

 

 

 

 

 

Common stock (3,736,255 shares)

 

 

 

5/1/2016

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

12,227

 

3,358

 

 

 

nThrive, Inc. (fka Precyse Acquisition Corp.)

 

Provider of healthcare information management technology and services

 

Second lien senior secured loan ($10,000 par due 4/2023)

 

10.75% (Libor + 9.75%/Q)

 

4/20/2016

 

9,624

 

10,000

(2)(20)

 

 

OmniSYS Acquisition Corporation, OmniSYS, LLC, and OSYS Holdings, LLC (25)

 

Provider of technology-enabled solutions to pharmacies

 

First lien senior secured loan ($5,899 par due 11/2018)

 

8.50% (Libor + 7.50%/Q)

 

11/21/2013

 

5,899

 

5,899

(4)(20)

 

 

 

 

 

 

Limited liability company membership interest (1.57%)

 

 

 

11/21/2013

 

1,000

 

679

(2)

 

 

 

 

 

 

 

 

 

 

 

 

6,899

 

6,578

 

 

 

Patterson Medical Supply, Inc.

 

Distributor of rehabilitation supplies and equipment

 

Second lien senior secured loan ($78,000 par due 8/2023)

 

9.50% (Libor + 8.50%/Q)

 

9/2/2015

 

76,070

 

78,000

(2)(20)

 

 

PerfectServe, Inc. (25)

 

Communications software platform provider for hospitals and physician practices

 

First lien senior secured loan ($9,000 par due 3/2020)

 

9.00% (Libor + 8.00%/M)

 

9/15/2015

 

8,714

 

9,000

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($2,000 par due 6/2020)

 

9.00% (Libor + 8.00%/M)

 

9/15/2015

 

1,965

 

2,000

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($3,000 par due 6/2021)

 

9.00% (Libor + 8.00%/M)

 

9/15/2015

 

2,960

 

3,000

(2)(20)

 

 

 

 

 

 

Warrant to purchase up to 28,428 shares of Series C preferred stock (expires 9/2025)

 

 

 

9/15/2015

 

180

 

256

(2)

 

 

 

 

 

 

Warrant to purchase up to 34,113 units of Series C preferred stock (expires 12/2023)

 

 

 

12/26/2013

 

 

307

(2)

 

 

 

 

 

 

 

 

 

 

 

 

13,819

 

14,563

 

 

 

PhyMED Management LLC

 

Provider of anesthesia services

 

Second lien senior secured loan ($47,239 par due 5/2021)

 

9.75% (Libor + 8.75%/Q)

 

12/18/2015

 

46,616

 

45,821

(2)(20)

 

 

Respicardia, Inc.

 

Developer of implantable therapies to improve cardiovascular health

 

Warrant to purchase up to 99,094 shares of Series C preferred stock (expires 6/2022)

 

 

 

6/28/2012

 

38

 

28

(2)

 

 

 

8



Table of Contents

 

As of September 30, 2016

(dollar amounts in thousands)

(unaudited)

 

Company(1)

 

Business Description

 

Investment

 

Interest(6)(12)

 

Acquisition
Date

 

Amortized
Cost

 

Fair Value

 

Percentage
of Net
Assets

 

Sarnova HC, LLC, Tri-Anim Health Services, Inc., and BEMS Holdings, LLC

 

Distributor of emergency medical service and respiratory products

 

Second lien senior secured loan ($54,000 par due 7/2022)

 

10.50% (Libor + 9.50%/Q)

 

1/29/2016

 

54,000

 

54,000

(2)(20)

 

 

Transaction Data Systems, Inc.

 

Pharmacy management software provider

 

Second lien senior secured loan ($27,500 par due 6/2022)

 

10.00% (Libor + 9.00%/Q)

 

6/15/2015

 

27,500

 

27,500

(2)(20)

 

 

U.S. Anesthesia Partners, Inc.

 

Anesthesiology service provider

 

Second lien senior secured loan ($23,500 par due 9/2020)

 

10.25% (Libor + 9.25%/Q)

 

12/14/2015

 

23,500

 

23,500

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($50,000 par due 9/2020)

 

10.25% (Libor + 9.25%/Q)

 

9/24/2014

 

50,000

 

50,000

(2)(20)

 

 

 

 

 

 

 

 

 

 

 

 

73,500

 

73,500

 

 

 

Urgent Cares of America Holdings I, LLC and FastMed Holdings I, LLC (25)

 

Operator of urgent care clinics

 

First lien senior secured loan ($13,895 par due 12/2022)

 

7.00% (Libor + 6.00%/Q)

 

12/1/2015

 

13,895

 

12,644

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($54,314 par due 12/2022)

 

7.00% (Libor + 6.00%/Q)

 

12/1/2015

 

54,313

 

49,426

(2)(20)

 

 

 

 

 

 

Preferred units (7,696,613 units)

 

 

 

6/11/2015

 

7,697

 

8,616

 

 

 

 

 

 

 

Series A common units (2,000,000 units)

 

 

 

6/11/2015

 

2,000

 

522

 

 

 

 

 

 

 

Series C common units (1,026,866 units)

 

 

 

6/11/2015

 

 

219

 

 

 

 

 

 

 

 

 

 

 

 

 

77,905

 

71,427

 

 

 

VistaPharm, Inc. and Vertice Pharma UK Parent Limited

 

Manufacturer and distributor of generic pharmaceutical products

 

Preferred shares (40,662 shares)

 

 

 

12/21/2015

 

407

 

407

(9)

 

 

Young Innovations, Inc.

 

Dental supplies and equipment manufacturer

 

Second lien senior secured loan ($45,000 par due 7/2019)

 

9.00% (Libor + 8.00%/Q)

 

5/30/2014

 

45,000

 

45,000

(2)(20)

 

 

 

 

 

 

 

 

 

 

 

 

1,305,517

 

1,253,156

 

24.06

%

Other Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Residential Services L.L.C.

 

Heating, ventilation and air conditioning services provider

 

Second lien senior secured loan ($67,000 par due 12/2021)

 

9.00% (Libor + 8.00%/Q)

 

6/30/2014

 

66,657

 

67,000

(2)(20)

 

 

Community Education Centers, Inc. and CEC Parent Holdings LLC (8)

 

Offender re-entry and in-prison treatment services provider

 

First lien senior secured loan ($13,579 par due 12/2017)

 

6.25% (Libor + 5.25%/Q)

 

12/10/2010

 

13,579

 

13,579

(2)(13)(20)

 

 

 

 

 

 

First lien senior secured loan ($707 par due 12/2017)

 

7.75%(Base Rate + 4.25%/Q)

 

12/10/2010

 

707

 

707

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($21,895 par due 6/2018)

 

15.75% (Libor + 15.00%/Q)

 

12/10/2010

 

21,895

 

21,895

(2)

 

 

 

 

 

 

Class A senior preferred units (7,846 units)

 

 

 

3/27/2015

 

9,384

 

10,918

(2)

 

 

 

 

 

 

Class A junior preferred units (26,154 units)

 

 

 

3/27/2015

 

20,168

 

18,850

(2)

 

 

 

 

 

 

Class A common units (134 units)

 

 

 

3/27/2015

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

65,733

 

65,949

 

 

 

Competitor Group, Inc., Calera XVI, LLC and Champion Parent Corporation (8)(25)

 

Endurance sports media and event operator

 

First lien senior secured revolving loan ($4,602 par due 11/2018)

 

5.00% (Libor + 3.75%/Q)

 

11/30/2012

 

4,473

 

4,602

(2)(20)

 

 

 

 

 

 

First lien senior secured revolving loan ($600 par due 11/2018)

 

5.00% (Libor + 3.75%/Q)

 

9/29/2016

 

600

 

600

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($39,098 par due 11/2018)

 

5.00% (Libor + 3.75%/Q)

 

11/30/2012

 

37,993

 

39,098

(2)(20)

 

 

 

 

 

 

Preferred shares (18,875 shares)

 

 

 

3/25/2016

 

15,966

 

1,245

(2)

 

 

 

 

 

 

Membership units (2,522,512 units)

 

 

 

11/30/2012

 

2,523

 

(2)

 

 

 

 

 

 

Common shares (114,000 shares)

 

 

 

3/25/2016

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

61,555

 

45,545

 

 

 

Crown Health Care Laundry Services, Inc. and Crown Laundry Holdings, LLC (7)(25)

 

Provider of outsourced healthcare linen management solutions

 

First lien senior secured revolving loan ($3,800 par due 3/2019)

 

7.25% (Libor + 6.00%/Q)

 

3/13/2014

 

3,800

 

3,800

(2)(20)(24)

 

 

 

 

 

 

First lien senior secured loan ($5,261 par due 3/2019)

 

7.25% (Libor + 6.00%/Q)

 

3/13/2014

 

5,261

 

5,261

(3)(20)

 

 

 

 

 

 

Class A preferred units (2,475,000 units)

 

 

 

3/13/2014

 

2,475

 

2,952

(2)

 

 

 

 

 

 

Class B common units (275,000 units)

 

 

 

3/13/2014

 

275

 

328

(2)

 

 

 

9



Table of Contents

 

As of September 30, 2016

(dollar amounts in thousands)

(unaudited)

 

Company(1)

 

Business Description

 

Investment

 

Interest(6)(12)

 

Acquisition
Date

 

Amortized
Cost

 

Fair Value

 

Percentage
of Net
Assets

 

 

 

 

 

 

 

 

 

 

 

11,811

 

12,341

 

 

 

Dwyer Acquisition Parent, Inc. and TDG Group Holding Company

 

Operator of multiple franchise concepts primarily related to home maintenance or repairs

 

Senior subordinated loan ($31,500 par due 2/2020)

 

11.00%

 

6/12/2015

 

31,500

 

31,500

(2)

 

 

 

 

 

 

Senior subordinated loan ($52,670 par due 2/2020)

 

11.00%

 

8/15/2014

 

52,670

 

52,670

(2)

 

 

 

 

 

 

Common stock (32,843 shares)

 

 

 

8/15/2014

 

3,378

 

4,986

(2)

 

 

 

 

 

 

 

 

 

 

 

 

87,548

 

89,156

 

 

 

Massage Envy, LLC (25)

 

Franchisor in the massage industry

 

First lien senior secured loan ($38,987 par due 9/2018)

 

8.50% (Libor + 7.25%/Q)

 

9/27/2012

 

38,987

 

38,988

(3)(20)

 

 

 

 

 

 

First lien senior secured loan ($18,945 par due 9/2018)

 

8.50% (Libor + 7.25%/Q)

 

9/27/2012

 

18,945

 

18,945

(4)(20)

 

 

 

 

 

 

Common stock (3,000,000 shares)

 

 

 

9/27/2012

 

3,000

 

5,762

(2)

 

 

 

 

 

 

 

 

 

 

 

 

60,932

 

63,695

 

 

 

McKenzie Sports Products, LLC (25)

 

Designer, manufacturer and distributor of hunting-related supplies

 

First lien senior secured loan ($5,500 par due 9/2020)

 

6.75% (Libor + 5.75%/Q)

 

9/18/2014

 

5,500

 

5,390

(2)(14)(20)

 

 

 

 

 

 

First lien senior secured loan ($39,500 par due 9/2020)

 

6.75% (Libor + 5.75%/Q)

 

9/18/2014

 

39,500

 

38,710

(2)(14)(20)

 

 

 

 

 

 

First lien senior secured loan ($45,000 par due 9/2020)

 

6.75% (Libor + 5.75%/Q)

 

9/18/2014

 

45,000

 

44,100

(3)(14)(20)

 

 

 

 

 

 

 

 

 

 

 

 

90,000

 

88,200

 

 

 

OpenSky Project, Inc. and OSP Holdings, Inc.

 

Social commerce platform operator

 

First lien senior secured loan ($1,200 par due 9/2017)

 

10.00%

 

6/4/2014

 

1,195

 

1,200

(2)

 

 

 

 

 

 

Warrant to purchase up to 159,496 shares of Series D preferred stock (expires 4/2025)

 

 

 

6/29/2015

 

48

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

1,243

 

1,200

 

 

 

Osmose Holdings, Inc.

 

Provider of structural integrity management services to transmission and distribution infrastructure

 

Second lien senior secured loan ($25,000 par due 8/2023)

 

8.75% (Libor + 7.75%/Q)

 

9/3/2015

 

24,568

 

24,500

(2)(20)

 

 

SocialFlow, Inc.

 

Social media optimization platform provider

 

First lien senior secured loan ($4,000 par due 8/2019)

 

9.50% (Libor + 8.50%/M)

 

1/29/2016

 

3,919

 

4,000

(5)(20)

 

 

 

 

 

 

Warrant to purchase up to 215,331 shares of Series C preferred stock (expires 1/2026)

 

 

 

1/29/2016

 

 

25

(5)

 

 

 

 

 

 

 

 

 

 

 

 

3,919

 

4,025

 

 

 

Spin HoldCo Inc.

 

Laundry service and equipment provider

 

Second lien senior secured loan ($140,000 par due 5/2020)

 

8.00% (Libor + 7.00%/Q)

 

5/14/2013

 

140,000

 

137,200

(2)(20)

 

 

Surface Dive, Inc.

 

SCUBA diver training and certification provider

 

Second lien senior secured loan ($31,591 par due 1/2022)

 

9.00% (Libor + 8.00%/Q)

 

7/28/2015

 

31,591

 

31,591

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($94,094 par due 1/2022)

 

10.25% (Libor + 9.25%/Q)

 

1/29/2015

 

93,753

 

94,094

(2)(20)

 

 

 

 

 

 

 

 

 

 

 

 

125,344

 

125,685

 

 

 

TWH Water Treatment Industries, Inc., TWH Filtration Industries, Inc. and TWH Infrastructure Industries, Inc. (25)

 

Wastewater infrastructure repair, treatment and filtration holding company

 

First lien senior secured loan ($5,370 par due 10/2019)

 

10.25% (Libor + 9.25%/Q)

 

10/10/2014

 

5,370

 

5,370

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($36,400 par due 10/2019)

 

10.25% (Libor + 9.25%/Q)

 

10/10/2014

 

36,400

 

36,400

(3)(20)

 

 

 

 

 

 

 

 

 

 

 

 

41,770

 

41,770

 

 

 

U.S. Security Associates Holdings, Inc

 

Security guard service provider

 

Second lien senior secured loan ($25,000 par due 7/2018)

 

11.00%

 

11/24/2015

 

25,000

 

25,000

(2)

 

 

WASH Multifamily Acquisition Inc. and Coinamatic Canada Inc.

 

Laundry service and equipment provider

 

Second lien senior secured loan ($3,726 par due 5/2023)

 

8.00% (Libor + 7.00%/Q)

 

5/14/2015

 

3,664

 

3,689

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($21,274 par due 5/2023)

 

8.00% (Libor + 7.00%/Q)

 

5/14/2015

 

20,920

 

21,061

(2)(20)

 

 

 

 

 

 

 

 

 

 

 

 

24,584

 

24,750

 

 

 

 

 

 

 

 

 

 

 

 

 

830,664

 

816,016

 

15.67

%

 

10



Table of Contents

 

As of September 30, 2016

(dollar amounts in thousands)

(unaudited)

 

Company(1)

 

Business Description

 

Investment

 

Interest(6)(12)

 

Acquisition
Date

 

Amortized
Cost

 

Fair Value

 

Percentage
of Net
Assets

 

Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruent, LLC and Athena Parent, Inc. (25)

 

Real estate and facilities management software provider

 

First lien senior secured loan ($15,000 par due 5/2022)

 

6.25% (Libor + 5.25%/Q)

 

9/13/2016

 

15,000

 

15,000

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($4,500 par due 5/2022)

 

6.25% (Libor + 5.25%/Q)

 

9/19/2016

 

4,500

 

4,500

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($10,500 par due 11/2022)

 

12.25%(Base Rate + 8.75%/Q)

 

9/19/2016

 

10,500

 

10,500

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($42,500 par due 11/2022)

 

10.75% (Libor + 9.75%/Q)

 

9/19/2016

 

42,500

 

42,500

(2)(20)

 

 

 

 

 

 

Series A preferred stock (778 shares)

 

 

 

9/19/2016

 

778

 

800

(2)

 

 

 

 

 

 

Common stock (3,000 shares)

 

 

 

5/16/2016

 

3,000

 

3,084

(2)

 

 

 

 

 

 

 

 

 

 

 

 

76,278

 

76,384

 

 

 

Brandtone Holdings Limited (9)

 

Mobile communications and marketing services provider

 

First lien senior secured loan ($4,676 par due 11/2018)

 

12.50% (Libor + 10.50% Cash, 1.00% PIK/M)

 

5/11/2015

 

4,591

 

3,975

(2)(20)

 

 

 

 

 

 

First lien senior secured loan ($3,098 par due 2/2019)

 

12.50% (Libor + 10.50% Cash, 1.00% PIK/M)

 

5/11/2015

 

3,035

 

2,633

(2)(20)

 

 

 

 

 

 

Warrant to purchase up to 184,003 units of Series Three participating convertible preferred shares (expires 8/2026)

 

 

 

5/11/2015

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

7,626

 

6,608

 

 

 

CallMiner, Inc.

 

Provider of cloud-based conversational analytics solutions

 

Second lien senior secured loan ($2,424 par due 5/2018)

 

10.50% (Libor + 9.50%/M)

 

7/23/2014

 

2,417

 

2,424

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($1,394 par due 8/2018)

 

10.50% (Libor + 9.50%/M)

 

7/23/2014

 

1,389

 

1,394

(2)(20)

 

 

 

 

 

 

Warrant to purchase up to 2,350,636 shares of Series 1 preferred stock (expires 7/2024)

 

 

 

7/23/2014

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

3,806

 

3,818

 

 

 

CIBT Holdings, Inc. and CIBT Investment Holdings, LLC

 

Expedited travel document processing services

 

Class A shares (2,500 shares)

 

 

 

12/15/2011

 

2,500

 

6,015

(2)

 

 

Clearwater Analytics, LLC (25)

 

Provider of integrated cloud-based investment portfolio management, accounting, reporting and analytics software

 

First lien senior secured loan ($25,500 par due 9/2022)

 

8.50% (Libor + 7.50%/Q)

 

9/1/2016

 

25,500

 

25,500

(2)(20)

 

 

CMW Parent LLC (fka Black Arrow, Inc.)

 

Multiplatform media firm

 

Series A units (32 units)

 

 

 

9/11/2015

 

 

(2)

 

 

Command Alkon, Incorporated and CA Note Issuer, LLC

 

Software solutions provider to the ready-mix concrete industry

 

Second lien senior secured loan ($10,000 par due 8/2020)

 

9.25% (Libor + 8.25%/Q)

 

9/28/2012

 

10,000

 

10,000

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($11,500 par due 8/2020)

 

9.44% (Libor + 8.25%/Q)

 

9/28/2012

 

11,500

 

11,500

(2)(20)

 

 

 

 

 

 

Second lien senior secured loan ($26,500 par due 8/2020)

 

9.25% (Libor + 8.25%/Q)

 

9/28/2012

 

26,500

 

26,500

(2)(20)

 

 

 

 

 

 

Senior subordinated loan ($22,542 par due 8/2021)

 

14.00% PIK

 

8/8/2014

 

22,542

 

22,542

(2)

 

 

 

 

 

 

 

 

 

 

 

 

70,542

 

70,542

 

 

 

Compuware Parent, LLC

 

Web and mobile cloud performance testing and monitoring services provider

 

Class A-1 common stock (4,132 units)

 

 

 

12/15/2014

 

2,250

 

2,113

(2)

 

 

 

 

 

 

Class B-1 common stock (4,132 units)

 

 

 

12/15/2014

 

450

 

422

(2)

 

 

 

 

 

 

Class C-1 common stock (4,132 units)

 

 

 

12/15/2014

 

300

 

282

(2)

 

 

 

 

 

 

Class A-2 common stock (4,132 units)

 

 

 

12/15/2014

 

 

(2)

 

 

 

 

 

 

Class B-2 common stock (4,132 units)

 

 

 

12/15/2014

 

 

(2)

 

 

 

 

 

 

Class C-2 common stock (4,132 units)

 

 

 

12/15/2014

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

3,000

 

2,817

 

 

 

 

11



Table of Contents

 

As of September 30, 2016

(dollar amounts in thousands)

(unaudited)

 

Company(1)

 

Business Description

 

Investment

 

Interest(6)(12)

 

Acquisition
Date

 

Amortized
Cost

 

Fair Value

 

Percentage
of Net
Assets

 

Directworks, Inc. and Co-Exprise Holdings, Inc.

 

Provider of cloud-based software solutions for direct materials sourcing and supplier management for manufacturers

 

First lien senior secured loan ($1,917 par due 4/2018)

 

10.25% (Libor + 9.25%/M)

 

12/19/2014

 

1,863

 

1,782

(2)(20)

 

 

 

 

 

 

Warrant to purchase up to 1,875,000 shares of Series 1 preferred stock (expires 12/2024)

 

 

 

12/19/2014

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

1,863

 

1,782

 

 

 

DTI Holdco, Inc. and OPE DTI Holdings, Inc. (25)

 

Provider of legal process outsourcing and managed services

 

First lien senior secured loan ($4,167 par due 9/2023)

 

6.25% (Libor + 5.25%/Q)

 

9/23/2016

 

4,125

 

4,166

(2)(20)

 

 

 

 

 

 

Class A common stock (7,500 shares)

 

 

 

8/19/2014

 

7,500

 

4,323

(2)

 

 

 

 

 

 

Class B common stock (7,500 shares)

 

 

 

8/19/2014

 

 

4,323

(2)