x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Maryland
|
|
27-2614444
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
9 West 57th Street, 49th Floor, Suite 4920
New York, New York
|
|
10019
|
(Address of Principal Executive Office)
|
|
(Zip Code)
|
Large accelerated filer
o
|
|
Accelerated filer
o
|
|
|
|
Non-accelerated filer
x
|
|
Smaller reporting company
o
|
|
|
|
|
|
Emerging growth company
o
|
|
|
|
Page
|
PART I - FINANCIAL INFORMATION
|
|
PART II - OTHER INFORMATION
|
|
|
June 30,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
ASSETS
|
(Unaudited)
|
|
|
||||
Investments, at fair value:
|
|
|
|
||||
Control Investments, at fair value (amortized cost of $269,050 and $271,711, respectively)
|
$
|
247,387
|
|
|
$
|
254,638
|
|
Affiliate Investments, at fair value (amortized cost of $359,233 and $383,894, respectively)
|
325,066
|
|
|
354,238
|
|
||
Non-affiliate Investments, at fair value (amortized cost of $1,918,958 and $1,859,933, respectively)
|
1,869,846
|
|
|
1,785,207
|
|
||
Investments, at fair value (amortized cost of $2,547,241 and $2,515,538, respectively)
|
2,442,299
|
|
|
2,394,083
|
|
||
Cash and cash equivalents
|
142,698
|
|
|
189,270
|
|
||
Interest and dividends receivable
|
26,838
|
|
|
28,608
|
|
||
Receivable for unsettled trades
|
26,757
|
|
|
4,293
|
|
||
Prepaid expenses and other assets
|
571
|
|
|
52
|
|
||
Total assets
|
$
|
2,639,163
|
|
|
$
|
2,616,306
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
|
||
Debt (net of deferred financing costs of $8,470 and $5,013, respectively)
|
$
|
1,000,188
|
|
|
$
|
910,484
|
|
Stockholder distributions payable
|
12,877
|
|
|
13,516
|
|
||
Management fees payable
|
9,691
|
|
|
9,571
|
|
||
Incentive fee on income payable
|
4,948
|
|
|
3,137
|
|
||
Accounts payable and accrued expenses
|
11,650
|
|
|
8,454
|
|
||
Payable for unsettled trades
|
77,660
|
|
|
74,020
|
|
||
Interest and debt fees payable
|
6,061
|
|
|
9,606
|
|
||
Payable for common stock repurchases
|
15
|
|
|
57,651
|
|
||
Directors' fees payable
|
68
|
|
|
133
|
|
||
Total liabilities
|
1,123,158
|
|
|
1,086,572
|
|
||
Commitments and contingencies (Note 6)
|
|
|
|
||||
|
|
|
|
||||
NET ASSETS
|
|
|
|
||||
Preferred stock, $.001 par value, 50,000,000 shares authorized, none issued and outstanding
|
$
|
—
|
|
|
$
|
—
|
|
Common stock, $.001 par value, 450,000,000 shares authorized, 180,493,481 and 177,120,791 shares issued and outstanding, respectively
|
180
|
|
|
177
|
|
||
Additional paid in capital
|
1,758,827
|
|
|
1,729,865
|
|
||
Accumulated under distributed net investment income
|
25,319
|
|
|
48,944
|
|
||
Accumulated over distributed net realized gains
|
(164,144
|
)
|
|
(129,161
|
)
|
||
Net unrealized depreciation, net of deferred taxes
|
(107,308
|
)
|
|
(122,912
|
)
|
||
Total net assets attributable to Business Development Corporation of America
|
1,512,874
|
|
|
1,526,913
|
|
||
Net assets attributable to non-controlling interest
|
3,131
|
|
|
2,821
|
|
||
Total net assets
|
1,516,005
|
|
|
1,529,734
|
|
||
|
|
|
|
||||
Total liabilities and net assets
|
$
|
2,639,163
|
|
|
$
|
2,616,306
|
|
|
|
|
|
||||
Net asset value per share attributable to Business Development Corporation of America
|
$
|
8.38
|
|
|
$
|
8.62
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Investment income:
|
|
|
|
|
|
|
|
|
||||||||
Interest from investments
|
|
|
|
|
|
|
|
|
||||||||
Control investments
|
|
$
|
6,168
|
|
|
$
|
7,696
|
|
|
$
|
12,321
|
|
|
$
|
14,603
|
|
Affiliate investments
|
|
6,936
|
|
|
8,955
|
|
|
15,516
|
|
|
17,405
|
|
||||
Non-affiliate investments
|
|
38,074
|
|
|
38,621
|
|
|
76,969
|
|
|
77,784
|
|
||||
Total interest from investments
|
|
51,178
|
|
|
55,272
|
|
|
104,806
|
|
|
109,792
|
|
||||
Interest from cash and cash equivalents
|
|
120
|
|
|
57
|
|
|
190
|
|
|
99
|
|
||||
Total interest income
|
|
51,298
|
|
|
55,329
|
|
|
104,996
|
|
|
109,891
|
|
||||
Other income
|
|
4,963
|
|
|
2,244
|
|
|
7,936
|
|
|
4,600
|
|
||||
Total investment income
|
|
56,261
|
|
|
57,573
|
|
|
112,932
|
|
|
114,491
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Management fees
|
|
9,691
|
|
|
9,593
|
|
|
19,229
|
|
|
19,006
|
|
||||
Incentive fee on income
|
|
4,948
|
|
|
6,878
|
|
|
11,314
|
|
|
6,878
|
|
||||
Interest and debt fees
|
|
10,810
|
|
|
9,440
|
|
|
20,660
|
|
|
18,775
|
|
||||
Professional fees
|
|
1,344
|
|
|
1,460
|
|
|
2,824
|
|
|
2,780
|
|
||||
Other general and administrative
|
|
1,720
|
|
|
2,133
|
|
|
3,346
|
|
|
5,014
|
|
||||
Administrative services
|
|
203
|
|
|
203
|
|
|
406
|
|
|
453
|
|
||||
Insurance
|
|
2
|
|
|
55
|
|
|
8
|
|
|
110
|
|
||||
Directors' fees
|
|
214
|
|
|
148
|
|
|
409
|
|
|
274
|
|
||||
Total expenses
|
|
28,932
|
|
|
29,910
|
|
|
58,196
|
|
|
53,290
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense, including excise tax
|
|
635
|
|
|
—
|
|
|
1,270
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net investment loss attributable to non-controlling interests
|
|
4
|
|
|
4
|
|
|
6
|
|
|
11
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
|
26,690
|
|
|
27,659
|
|
|
53,460
|
|
|
61,190
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Realized and unrealized gain (loss) on investments:
|
|
|
|
|
|
|
|
|
||||||||
Net realized gain (loss) from investments
|
|
|
|
|
|
|
|
|
||||||||
Control investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Affiliate investments
|
|
(18,192
|
)
|
|
—
|
|
|
(17,221
|
)
|
|
180
|
|
||||
Non-affiliate investments
|
|
(6,020
|
)
|
|
1,207
|
|
|
(17,762
|
)
|
|
2,224
|
|
||||
Total net realized gain (loss) from investments
|
|
(24,212
|
)
|
|
1,207
|
|
|
(34,983
|
)
|
|
2,404
|
|
||||
Net change in unrealized appreciation (depreciation) on investments, net of deferred taxes
|
|
|
|
|
|
|
|
|
||||||||
Control investments
|
|
755
|
|
|
(8,498
|
)
|
|
(5,196
|
)
|
|
(1,995
|
)
|
||||
Affiliate investments
|
|
12,852
|
|
|
24,066
|
|
|
12,014
|
|
|
15,878
|
|
||||
Non-affiliate investments
|
|
(1,275
|
)
|
|
(10,171
|
)
|
|
9,090
|
|
|
(22,929
|
)
|
||||
Total net change in unrealized appreciation (depreciation) on investments, net of deferred taxes
|
|
12,332
|
|
|
5,397
|
|
|
15,908
|
|
|
(9,046
|
)
|
||||
Net change in unrealized appreciation (depreciation) attributable to non-controlling interests
|
|
(96
|
)
|
|
684
|
|
|
(304
|
)
|
|
684
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gain (loss) on investments
|
|
(11,976
|
)
|
|
7,288
|
|
|
(19,379
|
)
|
|
(5,958
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net increase in net assets resulting from operations
|
|
$
|
14,714
|
|
|
$
|
34,947
|
|
|
$
|
34,081
|
|
|
$
|
55,232
|
|
|
|
|
|
|
|
|
|
|
||||||||
Per share information - basic and diluted
|
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
$
|
0.30
|
|
|
$
|
0.34
|
|
Net increase in net assets resulting from operations
|
|
$
|
0.08
|
|
|
$
|
0.20
|
|
|
$
|
0.19
|
|
|
$
|
0.31
|
|
Weighted average shares outstanding
|
|
179,880,734
|
|
|
178,671,810
|
|
|
179,052,951
|
|
|
178,874,087
|
|
|
For the Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Operations:
|
|
|
|
||||
Net investment income
|
$
|
53,460
|
|
|
$
|
61,190
|
|
Net realized gain (loss) from investments
|
(34,983
|
)
|
|
2,404
|
|
||
Net change in unrealized appreciation (depreciation) on investments, net of deferred taxes
|
15,908
|
|
|
(9,046
|
)
|
||
Net change in unrealized appreciation (depreciation) attributable to non-controlling interests
|
(304
|
)
|
|
684
|
|
||
Net increase in net assets from operations
|
34,081
|
|
|
55,232
|
|
||
Stockholder distributions:
|
|
|
|
|
|
||
Distributions
|
(77,086
|
)
|
|
(77,217
|
)
|
||
Net decrease in net assets from stockholder distributions
|
(77,086
|
)
|
|
(77,217
|
)
|
||
Capital share transactions:
|
|
|
|
|
|
||
Reinvestment of stockholder distributions
|
29,834
|
|
|
26,876
|
|
||
Repurchases of common stock
|
(868
|
)
|
|
(28,196
|
)
|
||
Net increase (decrease) in net assets from capital share transactions
|
28,966
|
|
|
(1,320
|
)
|
||
Total decrease in net assets, before non-controlling interest
|
(14,039
|
)
|
|
(23,305
|
)
|
||
Increase (decrease) in non-controlling interest
|
310
|
|
|
(675
|
)
|
||
Total decrease in net assets
|
(13,729
|
)
|
|
(23,980
|
)
|
||
Net assets at beginning of period
|
1,529,734
|
|
|
1,610,485
|
|
||
Net assets at end of period
|
$
|
1,516,005
|
|
|
$
|
1,586,505
|
|
|
|
|
|
||||
Net asset value per common share attributable to Business Development Corporation of America
|
$
|
8.38
|
|
|
$
|
8.84
|
|
Common shares outstanding at end of period
|
180,493,481
|
|
|
179,089,123
|
|
||
|
|
|
|
||||
Accumulated under (over) distributed net investment income
|
$
|
25,319
|
|
|
$
|
(7,656
|
)
|
Accumulated over distributed net realized gains
|
$
|
(164,144
|
)
|
|
$
|
(1,001
|
)
|
|
For the Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Operating activities:
|
|
|
|
||||
Net increase in net assets resulting from operations
|
$
|
34,081
|
|
|
$
|
55,232
|
|
Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:
|
|
|
|
|
|||
Payment-in-kind interest income
|
(3,564
|
)
|
|
(9,984
|
)
|
||
Net accretion of discount on investments
|
(4,136
|
)
|
|
(3,593
|
)
|
||
Amortization of deferred financing costs
|
1,132
|
|
|
1,733
|
|
||
Amortization of discount on unsecured notes
|
156
|
|
|
157
|
|
||
Sales and repayments of investments
|
481,737
|
|
|
327,976
|
|
||
Purchases of investments
|
(540,723
|
)
|
|
(325,286
|
)
|
||
Net realized (gain) loss from investments
|
34,983
|
|
|
(2,404
|
)
|
||
Net unrealized (appreciation) depreciation on investments, gross of deferred taxes
|
(16,513
|
)
|
|
7,236
|
|
||
(Increase) decrease in operating assets:
|
|
|
|
|
|||
Interest and dividends receivable
|
1,770
|
|
|
720
|
|
||
Prepaid expenses and other assets
|
(519
|
)
|
|
1,445
|
|
||
Receivable for unsettled trades
|
(22,464
|
)
|
|
(7,605
|
)
|
||
Increase (decrease) in operating liabilities:
|
|
|
|
|
|||
Payable for unsettled trades
|
3,640
|
|
|
46,588
|
|
||
Management and incentive fees payable
|
1,931
|
|
|
6,708
|
|
||
Interest and debt fees payable
|
(3,545
|
)
|
|
2,093
|
|
||
Accounts payable and accrued expenses
|
3,196
|
|
|
3,616
|
|
||
Directors' fees payable
|
(65
|
)
|
|
6
|
|
||
Net cash provided by (used in) operating activities
|
(28,903
|
)
|
|
104,638
|
|
||
|
|
|
|
||||
Financing activities:
|
|
|
|
|
|
||
Repurchases of common stock
|
(868
|
)
|
|
(28,196
|
)
|
||
Proceeds from debt
|
93,004
|
|
|
135,513
|
|
||
Payments on debt
|
—
|
|
|
(60,000
|
)
|
||
Payments for common stock repurchases
|
(57,636
|
)
|
|
(924
|
)
|
||
Payments of financing costs
|
(4,588
|
)
|
|
(250
|
)
|
||
Proceeds from affiliate
|
—
|
|
|
(10
|
)
|
||
Stockholder distributions
|
(47,891
|
)
|
|
(50,813
|
)
|
||
Increase in non-controlling interest
|
310
|
|
|
(675
|
)
|
||
Net cash used in financing activities
|
(17,669
|
)
|
|
(5,355
|
)
|
||
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
(46,572
|
)
|
|
99,283
|
|
||
Cash and cash equivalents, beginning of period
|
189,270
|
|
|
150,412
|
|
||
Cash and cash equivalents, end of period
|
$
|
142,698
|
|
|
$
|
249,695
|
|
Supplemental information:
|
|
|
|
|
|
||
Interest paid during the period
|
$
|
22,638
|
|
|
$
|
14,669
|
|
Taxes, including excise tax, paid during the period
|
$
|
21
|
|
|
$
|
145
|
|
Distributions reinvested
|
$
|
29,834
|
|
|
$
|
26,876
|
|
June 30, 2017
(Unaudited)
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured First Lien
Debt - 111.4% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Abaco Systems Holding Corp. (i)
|
|
Business Services
|
|
L+6.00% (7.16%), 12/7/2021
|
|
$
|
23,819
|
|
|
$
|
23,391
|
|
|
$
|
23,597
|
|
|
1.6
|
%
|
Ability Networks Inc. (j)
|
|
Health Care Providers & Services
|
|
L+5.00% (6.30%), 5/14/2021
|
|
13,642
|
|
|
13,571
|
|
|
13,642
|
|
|
0.9
|
%
|
|||
Adams Publishing Group, LLC (f) (i)
|
|
Media
|
|
L+7.00% (8.30%), 11/3/2020
|
|
18,037
|
|
|
17,852
|
|
|
18,037
|
|
|
1.2
|
%
|
|||
Aleris International, Inc. (x)
|
|
Metals & Mining
|
|
9.50%, 4/1/2021
|
|
2,882
|
|
|
3,068
|
|
|
2,971
|
|
|
0.2
|
%
|
|||
Alvogen Pharma US, Inc. (j)
|
|
Health Care
|
|
L+5.00% (6.23%), 4/2/2022
|
|
14,469
|
|
|
14,346
|
|
|
14,346
|
|
|
1.0
|
%
|
|||
Amports, Inc. (m)
|
|
Transportation Infrastructure
|
|
L+5.00% (6.30%), 5/19/2020
|
|
14,876
|
|
|
14,823
|
|
|
14,728
|
|
|
1.0
|
%
|
|||
Amteck, LLC (f) (i)
|
|
Commercial Services & Supplies
|
|
L+7.50% (8.80%), 7/2/2020
|
|
22,313
|
|
|
22,080
|
|
|
21,866
|
|
|
1.4
|
%
|
|||
Answers Corporation (p) (t)
|
|
Technology
|
|
L+5.00% (6.23%), 4/15/2021
|
|
3,022
|
|
|
2,950
|
|
|
2,991
|
|
|
0.2
|
%
|
|||
AP Gaming I, LLC (i) (j)
|
|
Gaming/Lodging
|
|
L+5.50% (6.59%), 2/15/2024
|
|
29,500
|
|
|
29,427
|
|
|
29,697
|
|
|
2.0
|
%
|
|||
APCO Holdings (i)
|
|
Diversified Consumer Services
|
|
L+6.00% (7.23%), 1/29/2022
|
|
8,611
|
|
|
8,400
|
|
|
8,439
|
|
|
0.6
|
%
|
|||
Applied Merchant Systems West Coast, Inc. (m)
|
|
Diversified Financial Services
|
|
L+11.50% (12.65%), 10/26/2020
|
|
19,109
|
|
|
18,849
|
|
|
18,345
|
|
|
1.2
|
%
|
|||
Applied Merchant Systems West Coast, Inc. (m)
|
|
Diversified Financial Services
|
|
L+11.50% (12.69%), 10/26/2020
|
|
6,500
|
|
|
6,412
|
|
|
6,240
|
|
|
0.4
|
%
|
|||
Ascensus, Inc. (j)
|
|
Technology
|
|
L+4.00% (5.30%), 12/3/2022
|
|
19,736
|
|
|
18,895
|
|
|
19,736
|
|
|
1.3
|
%
|
|||
Avaya, Inc. Term Loan B-3 (j) (t)
|
|
Communications Equipment
|
|
L+4.50% (5.67%), 10/26/2017
|
|
9,685
|
|
|
8,784
|
|
|
7,698
|
|
|
0.5
|
%
|
|||
Avaya, Inc. Term Loan B-6 (j) (t)
|
|
Communications Equipment
|
|
L+5.50% (6.67%), 3/31/2018
|
|
8,457
|
|
|
8,461
|
|
|
6,766
|
|
|
0.5
|
%
|
|||
Avaya, Inc. Term Loan B-7 (i) (j) (t)
|
|
Communications Equipment
|
|
L+5.25% (6.42%), 5/29/2020
|
|
9,793
|
|
|
9,725
|
|
|
7,815
|
|
|
0.5
|
%
|
|||
Basho Technologies, Inc. (d) (l) (t)
|
|
Software
|
|
17.00%, 3/9/2018
|
|
7,720
|
|
|
7,542
|
|
|
—
|
|
|
—
|
%
|
|||
Basho Technologies, Inc. (d) (l) (t)
|
|
Software
|
|
17.00%, 11/15/2017
|
|
2,550
|
|
|
2,550
|
|
|
—
|
|
|
—
|
%
|
|||
BCP Raptor, LLC (j)
|
|
Energy Equipment & Services
|
|
L+4.25% (5.47%), 6/24/2024
|
|
20,086
|
|
|
19,885
|
|
|
19,835
|
|
|
1.3
|
%
|
|||
BDS Solutions Group, LLC (i) (m)
|
|
Business Services
|
|
L+8.75% (10.05%), 6/1/2021
|
|
36,830
|
|
|
36,176
|
|
|
36,830
|
|
|
2.4
|
%
|
|||
BDS Solutions Group, LLC (i) (m)
|
|
Business Services
|
|
L+8.75% (10.05%), 6/1/2021
|
|
500
|
|
|
489
|
|
|
500
|
|
|
—
|
%
|
|||
Berner Food & Beverage LLC (f) (i)
|
|
Food Products
|
|
L+7.00% (8.30%), 3/16/2022
|
|
18,853
|
|
|
18,498
|
|
|
18,476
|
|
|
1.2
|
%
|
|||
Blount International, Inc. (j)
|
|
Electronic Equipment, Instruments & Components
|
|
L+5.00% (6.22%), 4/12/2023
|
|
12,406
|
|
|
12,094
|
|
|
12,406
|
|
|
0.8
|
%
|
|||
Broder Bros, Co. (m)
|
|
Distributors
|
|
L+5.75% (7.00%), 6/3/2021
|
|
6,764
|
|
|
6,667
|
|
|
6,763
|
|
|
0.5
|
%
|
|||
Broder Bros, Co. (m)
|
|
Distributors
|
|
L+12.25% (13.50%), 6/3/2021
|
|
7,009
|
|
|
6,909
|
|
|
7,009
|
|
|
0.5
|
%
|
|||
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) (l) (o) (t)
|
|
Food Products
|
|
L+12.50% (13.80%), 4/28/2019
|
|
17,055
|
|
|
16,406
|
|
|
3,411
|
|
|
0.2
|
%
|
|||
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) (l) (o) (t)
|
|
Food Products
|
|
L+12.50% (13.80%), 4/28/2019
|
|
39,415
|
|
|
33,647
|
|
|
7,883
|
|
|
0.5
|
%
|
June 30, 2017
(Unaudited)
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
Catapult Learning, LLC (i) (m)
|
|
Diversified Consumer Services
|
|
L+6.50% (7.67%), 7/16/2020
|
|
$
|
27,500
|
|
|
$
|
27,164
|
|
|
$
|
26,400
|
|
|
1.7
|
%
|
CCW, LLC (f) (i)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.25%), 3/21/2021
|
|
24,375
|
|
|
24,103
|
|
|
24,253
|
|
|
1.6
|
%
|
|||
Central Security Group, Inc. (i) (j)
|
|
Commercial Services & Supplies
|
|
L+5.63% (6.85%), 10/6/2020
|
|
25,424
|
|
|
25,118
|
|
|
25,424
|
|
|
1.7
|
%
|
|||
Chicken Soup for the Soul Publishing, LLC (i)
|
|
Media
|
|
L+6.25% (7.50%), 1/8/2019
|
|
27,686
|
|
|
27,580
|
|
|
25,886
|
|
|
1.7
|
%
|
|||
Clover Technologies Group, LLC (j)
|
|
Commercial Services & Supplies
|
|
L+4.50% (5.71%), 5/8/2020
|
|
13,620
|
|
|
13,556
|
|
|
13,075
|
|
|
0.9
|
%
|
|||
Contura Energy Inc. (j)
|
|
Energy Equipment & Services
|
|
L+5.00% (6.23%), 3/18/2024
|
|
7,724
|
|
|
7,649
|
|
|
7,649
|
|
|
0.5
|
%
|
|||
ConvergeOne Holdings Corp. (j)
|
|
Technology
|
|
L+4.75% (5.97%), 6/20/2024
|
|
16,558
|
|
|
16,393
|
|
|
16,434
|
|
|
1.1
|
%
|
|||
Covenant Surgical Partners, Inc. (x)
|
|
Health Care
|
|
8.75%, 8/1/2019
|
|
392
|
|
|
381
|
|
|
385
|
|
|
—
|
%
|
|||
Covenant Surgical Partners, Inc. (x)
|
|
Health Care
|
|
8.75%, 8/1/2019
|
|
10,000
|
|
|
9,552
|
|
|
9,591
|
|
|
0.6
|
%
|
|||
Cvent, Inc. (j)
|
|
Internet Software & Services
|
|
L+5.00% (6.30%), 11/29/2023
|
|
9,975
|
|
|
9,875
|
|
|
9,975
|
|
|
0.7
|
%
|
|||
Danish CRJ LTD. (a) (p)
|
|
Aerospace & Defense
|
|
13.50%, 12/23/2028
|
|
20
|
|
|
—
|
|
|
20
|
|
|
—
|
%
|
|||
DigiCert, Inc (j)
|
|
Internet Software & Services
|
|
L+5.00% (6.30%), 10/21/2021
|
|
10,800
|
|
|
10,565
|
|
|
10,800
|
|
|
0.7
|
%
|
|||
Eagle Rx, LLC (i)
|
|
Health Care Providers & Services
|
|
L+4.00% (5.30%), 8/15/2019
|
|
14,450
|
|
|
14,419
|
|
|
14,450
|
|
|
1.0
|
%
|
|||
ECI Acquisition Holdings, Inc. (i)
|
|
Internet Software & Services
|
|
L+6.25% (7.55%), 3/11/2019
|
|
12,443
|
|
|
12,422
|
|
|
12,256
|
|
|
0.8
|
%
|
|||
ERG Holding Company (i) (m)
|
|
Health Care Providers & Services
|
|
L+6.75% (8.05%), 4/4/2019
|
|
34,300
|
|
|
33,948
|
|
|
33,785
|
|
|
2.2
|
%
|
|||
Everi Payments, Inc. (j)
|
|
Hotels, Restaurants & Leisure
|
|
L+4.50% (5.75%), 5/9/2024
|
|
10,708
|
|
|
10,691
|
|
|
10,762
|
|
|
0.7
|
%
|
|||
Excelitas Technologies Corp. (j)
|
|
Electronic Equipment, Instruments & Components
|
|
L+5.00% (6.30%), 11/2/2020
|
|
13,642
|
|
|
13,601
|
|
|
13,607
|
|
|
0.9
|
%
|
|||
Genesys Telecommunications Laboratories, Inc. (j)
|
|
Diversified Telecommunication Services
|
|
L+4.00% (5.30%), 12/1/2023
|
|
24,875
|
|
|
24,531
|
|
|
24,931
|
|
|
1.6
|
%
|
|||
Greenwave Holdings, Inc. (l)
|
|
Internet Software & Services
|
|
13.00%, 7/8/2019
|
|
15,932
|
|
|
15,846
|
|
|
16,250
|
|
|
1.1
|
%
|
|||
GTCR Valor Companies, Inc. (j)
|
|
Software
|
|
L+6.00% (7.30%), 6/16/2023
|
|
24,750
|
|
|
23,904
|
|
|
24,855
|
|
|
1.6
|
%
|
|||
HC Group Holdings III, Inc. (j)
|
|
Health Care
|
|
L+5.00% (6.23%), 4/7/2022
|
|
14,857
|
|
|
14,616
|
|
|
14,833
|
|
|
1.0
|
%
|
|||
Hexion Inc. (x)
|
|
Chemicals
|
|
10.38%, 2/1/2022
|
|
920
|
|
|
920
|
|
|
908
|
|
|
0.1
|
%
|
|||
Icynene US Acquisition Corp. (f) (i) (m)
|
|
Building Products
|
|
L+6.25% (7.42%), 11/4/2020
|
|
20,352
|
|
|
20,124
|
|
|
20,047
|
|
|
1.3
|
%
|
|||
ILC Dover LP (i) (l)
|
|
Aerospace & Defense
|
|
L+9.00% (10.23%), 3/20/2020
|
|
14,056
|
|
|
14,025
|
|
|
12,088
|
|
|
0.8
|
%
|
|||
Indivior Finance S.A.R.L. (j)
|
|
Health Care
|
|
L+6.00% (7.17%), 12/19/2019
|
|
8,091
|
|
|
8,091
|
|
|
8,091
|
|
|
0.5
|
%
|
|||
InMotion Entertainment Group, LLC (f) (i)
|
|
Specialty Retail
|
|
L+7.75% (9.05%), 10/1/2018
|
|
14,059
|
|
|
13,968
|
|
|
14,059
|
|
|
0.9
|
%
|
|||
Internap Corporation (m)
|
|
Communications Equipment
|
|
L+7.00% (8.09%), 4/6/2022
|
|
8,249
|
|
|
8,130
|
|
|
8,125
|
|
|
0.5
|
%
|
June 30, 2017
(Unaudited)
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
IPC Corp. (j)
|
|
Diversified Telecommunication Services
|
|
L+4.50% (5.67%), 8/6/2021
|
|
$
|
9,140
|
|
|
$
|
9,010
|
|
|
$
|
8,591
|
|
|
0.6
|
%
|
Jackson Hewitt, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+7.00% (8.17%), 7/30/2020
|
|
6,720
|
|
|
6,631
|
|
|
6,451
|
|
|
0.4
|
%
|
|||
K2 Pure Solutions NoCal, L.P. (i)
|
|
Chemicals
|
|
L+6.00% (7.23%), 2/19/2021
|
|
6,500
|
|
|
6,452
|
|
|
6,500
|
|
|
0.4
|
%
|
|||
Kahala Ireland OpCo Designated Activity Company (a) (d) (l) (o)
|
|
Aerospace & Defense
|
|
L+8.00% (13.00%), 12/23/2028
|
|
149,531
|
|
|
149,531
|
|
|
149,531
|
|
|
9.9
|
%
|
|||
Kissner Milling Co. Ltd. (x)
|
|
Chemicals
|
|
8.38%, 12/1/2022
|
|
21,199
|
|
|
21,558
|
|
|
21,994
|
|
|
1.5
|
%
|
|||
LenderLive Services, LLC
|
|
Business Services
|
|
L+12.00% (13.17%), 8/11/2020
|
|
10,000
|
|
|
9,844
|
|
|
9,700
|
|
|
0.6
|
%
|
|||
Lightsquared LP (l)
|
|
Diversified Telecommunications Services
|
|
L+8.75% (9.97%), 6/15/2020
|
|
10,760
|
|
|
9,962
|
|
|
10,430
|
|
|
0.7
|
%
|
|||
Lionbridge Technologies, Inc. (i)
|
|
Business Services
|
|
L+5.50% (6.73%), 2/6/2024
|
|
13,833
|
|
|
13,767
|
|
|
13,764
|
|
|
0.9
|
%
|
|||
MCS Acquisition Corp. (j)
|
|
Professional Services
|
|
L+4.75% (5.96%), 5/18/2024
|
|
12,600
|
|
|
12,538
|
|
|
12,537
|
|
|
0.8
|
%
|
|||
Medical Depot Holdings, Inc. (i)
|
|
Health Care
|
|
L+5.50% (6.80%), 1/3/2023
|
|
20,025
|
|
|
18,358
|
|
|
18,334
|
|
|
1.2
|
%
|
|||
Metal Services LLC (j)
|
|
Metals & Mining
|
|
L+7.50% (8.80%), 6/30/2019
|
|
10,861
|
|
|
10,755
|
|
|
10,861
|
|
|
0.7
|
%
|
|||
Midwest Can Company, LLC (f) (i)
|
|
Energy Equipment & Services
|
|
L+6.75% (7.80%), 1/26/2022
|
|
5,092
|
|
|
5,011
|
|
|
5,003
|
|
|
0.3
|
%
|
|||
MMM Holdings, LLC (j) (l)
|
|
Health Care
|
|
L+8.75% (10.25%), 6/28/2019
|
|
7,028
|
|
|
7,027
|
|
|
6,888
|
|
|
0.5
|
%
|
|||
Monitronics International, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+5.50% (6.80%), 9/30/2022
|
|
2,978
|
|
|
2,964
|
|
|
3,002
|
|
|
0.2
|
%
|
|||
Montreign Operating Company, LLC (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (9.48%), 1/24/2023
|
|
27,161
|
|
|
26,691
|
|
|
27,511
|
|
|
1.8
|
%
|
|||
Mood Media Corporation (m)
|
|
Business Services
|
|
L+7.25% (8.54%), 6/28/2022
|
|
14,124
|
|
|
13,815
|
|
|
13,842
|
|
|
0.9
|
%
|
|||
Motion Recruitment Partners, LLC (f) (i)
|
|
Professional Services
|
|
L+6.00% (7.30%), 2/13/2020
|
|
17,444
|
|
|
17,227
|
|
|
17,444
|
|
|
1.2
|
%
|
|||
Motorsports Aftermarket Group, Inc.
|
|
Auto Components
|
|
L+4.00% (5.42%), 5/14/2021
|
|
26,146
|
|
|
24,913
|
|
|
11,504
|
|
|
0.8
|
%
|
|||
MSO of Puerto Rico, LLC (j) (l)
|
|
Health Care
|
|
L+8.75% (10.25%), 6/28/2019
|
|
5,110
|
|
|
5,108
|
|
|
5,007
|
|
|
0.3
|
%
|
|||
Murray Energy Holdings Co. (j)
|
|
Energy Equipment & Services
|
|
L+7.25% (8.55%), 4/16/2020
|
|
14,723
|
|
|
14,045
|
|
|
14,355
|
|
|
0.9
|
%
|
|||
MWI Holdings, Inc. (j)
|
|
Machinery
|
|
L+5.50% (6.80%), 6/28/2020
|
|
9,900
|
|
|
9,825
|
|
|
9,900
|
|
|
0.7
|
%
|
|||
National Technical Systems, Inc. (i)
|
|
Professional Services
|
|
L+6.00% (7.05%), 6/12/2021
|
|
16,469
|
|
|
16,362
|
|
|
15,646
|
|
|
1.0
|
%
|
|||
New Star Metals Inc. (d) (l) (m)
|
|
Business Services
|
|
L+9.50% (11.00%), 12/22/2021
|
|
24,510
|
|
|
24,036
|
|
|
24,039
|
|
|
1.6
|
%
|
|||
NexSteppe Inc. (l) (t)
|
|
Chemicals
|
|
18.00%, 3/30/2018
|
|
10,691
|
|
|
10,457
|
|
|
4,597
|
|
|
0.3
|
%
|
|||
Noosa Acquirer, Inc. (i) (m)
|
|
Food Products
|
|
L+5.25% (6.55%), 11/21/2020
|
|
25,000
|
|
|
24,788
|
|
|
25,000
|
|
|
1.6
|
%
|
|||
NTM Acquisition Corp. (i)
|
|
Media
|
|
L+6.25% (7.55%), 6/7/2022
|
|
19,175
|
|
|
18,957
|
|
|
19,079
|
|
|
1.3
|
%
|
|||
Orchid Underwriters Agency, LLC (f) (i)
|
|
Insurance Broker
|
|
L+5.00% (6.16%), 3/17/2022
|
|
19,950
|
|
|
19,762
|
|
|
19,950
|
|
|
1.3
|
%
|
|||
ORG Chemical Holdings, LLC (i) (m)
|
|
Chemicals
|
|
L+5.75% (7.05%), 6/30/2022
|
|
27,962
|
|
|
27,403
|
|
|
27,403
|
|
|
1.8
|
%
|
June 30, 2017
(Unaudited)
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
Otter Box Holdings, Inc. (j)
|
|
Electronic Equipment, Instruments & Components
|
|
L+4.75% (5.98%), 6/3/2020
|
|
$
|
13,604
|
|
|
$
|
13,442
|
|
|
$
|
13,468
|
|
|
0.9
|
%
|
Peabody Energy Corp. (j)
|
|
Metals & Mining
|
|
L+4.50% (5.73%), 3/31/2022
|
|
5,541
|
|
|
5,527
|
|
|
5,529
|
|
|
0.4
|
%
|
|||
PeopLease Holdings, LLC (i)
|
|
Commercial Services & Supplies
|
|
L+9.00% (10.30%), 2/26/2021
|
|
20,000
|
|
|
19,852
|
|
|
18,500
|
|
|
1.2
|
%
|
|||
PetVet Care Centers, LLC (f) (i)
|
|
Business Services
|
|
L+6.00% (7.22%), 6/8/2023
|
|
19,552
|
|
|
19,379
|
|
|
19,357
|
|
|
1.3
|
%
|
|||
PetVet Care Centers, LLC (f) (i)
|
|
Business Services
|
|
L+6.00% (7.22%), 6/8/2023
|
|
92
|
|
|
92
|
|
|
91
|
|
|
—
|
%
|
|||
PGX Holdings, Inc. (j)
|
|
Transportation Infrastructure
|
|
L+5.25% (6.48%), 9/29/2020
|
|
12,990
|
|
|
12,932
|
|
|
12,991
|
|
|
0.9
|
%
|
|||
Premier Dental Services, Inc. (i) (j)
|
|
Health Care
|
|
L+6.50% (7.55%), 6/30/2023
|
|
28,846
|
|
|
28,557
|
|
|
28,629
|
|
|
1.9
|
%
|
|||
Premier Global Services, Inc. (j)
|
|
Diversified Telecommunication Services
|
|
L+6.50% (7.59%), 12/8/2021
|
|
9,614
|
|
|
9,309
|
|
|
9,560
|
|
|
0.6
|
%
|
|||
Pre-Paid Legal Services, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+5.25% (6.50%), 7/1/2019
|
|
12,130
|
|
|
12,150
|
|
|
12,130
|
|
|
0.8
|
%
|
|||
Pride Plating, Inc. (i)
|
|
Aerospace & Defense
|
|
L+5.50% (6.80%), 6/13/2019
|
|
8,612
|
|
|
8,568
|
|
|
8,440
|
|
|
0.6
|
%
|
|||
PSKW, LLC (i)
|
|
Health Care Providers & Services
|
|
L+4.25% (5.55%), 11/25/2021
|
|
1,575
|
|
|
1,563
|
|
|
1,575
|
|
|
0.1
|
%
|
|||
PSKW, LLC (m)
|
|
Health Care Providers & Services
|
|
L+8.29% (9.59%), 11/25/2021
|
|
17,750
|
|
|
17,489
|
|
|
17,750
|
|
|
1.2
|
%
|
|||
PT Network, LLC (f) (i)
|
|
Health Care
|
|
L+6.50% (7.72%), 11/30/2021
|
|
17,020
|
|
|
16,870
|
|
|
17,016
|
|
|
1.1
|
%
|
|||
PT Network, LLC (f)
|
|
Health Care
|
|
L+6.50% (7.72%), 11/30/2021
|
|
1,555
|
|
|
1,555
|
|
|
1,554
|
|
|
0.1
|
%
|
|||
Pure Barre, LLC (f) (i) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.23%), 6/11/2020
|
|
26,399
|
|
|
26,126
|
|
|
26,135
|
|
|
1.7
|
%
|
|||
Pure Barre, LLC (f)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.23%), 6/11/2020
|
|
200
|
|
|
200
|
|
|
198
|
|
|
—
|
%
|
|||
Resco Products, Inc. (i)
|
|
Metals & Mining
|
|
L+6.25% (7.48%), 3/7/2020
|
|
10,000
|
|
|
10,000
|
|
|
9,750
|
|
|
0.6
|
%
|
|||
RVNB Holdings, Inc. (dba All My Sons Moving & Storage) (f) (i)
|
|
Diversified Consumer Services
|
|
L+6.50% (7.75%), 2/25/2020
|
|
21,129
|
|
|
20,904
|
|
|
21,129
|
|
|
1.4
|
%
|
|||
Sage Automotive Holdings, Inc. (j)
|
|
Auto Components
|
|
L+5.00% (6.23%), 11/8/2022
|
|
14,925
|
|
|
14,790
|
|
|
14,925
|
|
|
1.0
|
%
|
|||
SHO Holding II Corporation (j)
|
|
Specialty Retail
|
|
L+5.00% (6.23%), 10/27/2022
|
|
11,820
|
|
|
11,728
|
|
|
11,761
|
|
|
0.8
|
%
|
|||
Skillsoft Corp. (j)
|
|
Technology
|
|
L+4.75% (5.98%), 4/28/2021
|
|
7,536
|
|
|
7,140
|
|
|
7,112
|
|
|
0.5
|
%
|
|||
Squan Holding Corp. (p)
|
|
Diversified Telecommunication Services
|
|
L+4.00% (5.30%), 10/10/2019
|
|
10,315
|
|
|
7,339
|
|
|
6,808
|
|
|
0.4
|
%
|
|||
STG-Fairway Acquisitions, Inc. (j)
|
|
Professional Services
|
|
L+5.25% (6.55%), 6/30/2022
|
|
13,359
|
|
|
13,213
|
|
|
12,758
|
|
|
0.8
|
%
|
|||
SunGard Availability Services Capital, Inc. (j)
|
|
IT Services
|
|
L+5.00% (6.23%), 3/31/2019
|
|
8,741
|
|
|
8,709
|
|
|
8,566
|
|
|
0.6
|
%
|
|||
Tax Defense Network, LLC (f) (i) (l) (m) (t)
|
|
Diversified Consumer Services
|
|
L+12.50% (13.80%), 8/28/2019
|
|
26,799
|
|
|
26,532
|
|
|
15,417
|
|
|
1.0
|
%
|
|||
Tillamook Country Smoker, LLC (f) (i)
|
|
Food Products
|
|
L+5.75% (6.97%), 5/19/2022
|
|
10,244
|
|
|
10,094
|
|
|
10,090
|
|
|
0.7
|
%
|
|||
Tillamook Country Smoker, LLC (f) (i)
|
|
Food Products
|
|
L+5.75% (6.97%), 5/19/2022
|
|
135
|
|
|
135
|
|
|
133
|
|
|
—
|
%
|
June 30, 2017
(Unaudited)
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
Trilogy International Partners, LLC
(x)
|
|
Diversified Telecommunication Services
|
|
8.88%, 5/1/2022
|
|
$
|
14,875
|
|
|
$
|
14,803
|
|
|
$
|
15,489
|
|
|
1.0
|
%
|
Trojan Battery Company, LLC (j)
|
|
Auto Components
|
|
L+4.75% (5.99%), 6/12/2021
|
|
10,532
|
|
|
10,471
|
|
|
10,453
|
|
|
0.7
|
%
|
|||
Turning Tech LLC (i)
|
|
Software
|
|
L+10.75% (12.05%), 6/30/2020
|
|
24,226
|
|
|
23,971
|
|
|
20,593
|
|
|
1.4
|
%
|
|||
Twenty Eighty, Inc. (l) (p)
|
|
Media
|
|
8.00%, 3/31/2020
|
|
6,074
|
|
|
4,041
|
|
|
3,948
|
|
|
0.3
|
%
|
|||
Twenty Eighty, Inc. (l) (p)
|
|
Media
|
|
L+8.00% (9.12%), 3/31/2020
|
|
2,845
|
|
|
2,285
|
|
|
2,703
|
|
|
0.2
|
%
|
|||
Twenty Eighty, Inc. (l) (p)
|
|
Media
|
|
9.00%, 3/31/2020
|
|
5,506
|
|
|
3,673
|
|
|
3,029
|
|
|
0.2
|
%
|
|||
United Central Industrial Supply Company, LLC (i) (j)
|
|
Commercial Services & Supplies
|
|
L+7.25% (8.50%), 10/9/2018
|
|
8,549
|
|
|
8,513
|
|
|
7,438
|
|
|
0.5
|
%
|
|||
VCVH Holding Corp. (j)
|
|
Health Care
|
|
L+5.00% (6.30%), 6/1/2023
|
|
12,870
|
|
|
12,761
|
|
|
12,831
|
|
|
0.8
|
%
|
|||
Veritas US Inc. (j)
|
|
Technology
|
|
L+4.50% (5.80%), 1/27/2023
|
|
25,131
|
|
|
25,206
|
|
|
25,206
|
|
|
1.7
|
%
|
|||
VetCor Professional Practices LLC (f) (i)
|
|
Diversified Consumer Services
|
|
L+6.25% (7.55%), 4/20/2021
|
|
4,934
|
|
|
4,896
|
|
|
4,835
|
|
|
0.3
|
%
|
|||
VetCor Professional Practices LLC (f) (i)
|
|
Diversified Consumer Services
|
|
L+6.25% (7.55%), 4/20/2021
|
|
634
|
|
|
634
|
|
|
621
|
|
|
—
|
%
|
|||
VetCor Professional Practices LLC (f) (i)
|
|
Diversified Consumer Services
|
|
L+6.25% (7.55%), 4/20/2021
|
|
9,800
|
|
|
9,737
|
|
|
9,604
|
|
|
0.6
|
%
|
|||
Xplornet Communications, Inc. (a) (j)
|
|
Diversified Telecommunication Services
|
|
L+6.00% (7.30%), 9/9/2021
|
|
12,338
|
|
|
12,258
|
|
|
12,461
|
|
|
0.8
|
%
|
|||
Sub Total Senior Secured First Lien Debt
|
|
|
|
|
|
|
|
$
|
1,777,310
|
|
|
$
|
1,688,412
|
|
|
111.4
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Second Lien Debt - 18.8% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Anchor Glass Container Corporation (m)
|
|
Containers & Packaging
|
|
L+7.75% (8.81%), 12/7/2024
|
|
$
|
20,000
|
|
|
$
|
19,814
|
|
|
$
|
20,242
|
|
|
1.3
|
%
|
Answers Corporation (p) (t)
|
|
Technology
|
|
L+5.00% (6.23%), 9/15/2021
|
|
4,699
|
|
|
4,028
|
|
|
4,558
|
|
|
0.3
|
%
|
|||
Appriss Holdings, Inc. (m)
|
|
IT Services
|
|
L+9.25% (10.55%), 5/21/2021
|
|
13,985
|
|
|
13,856
|
|
|
13,705
|
|
|
0.9
|
%
|
|||
Asurion LLC (j)
|
|
IT Services
|
|
L+7.50% (8.73%), 3/3/2021
|
|
10,000
|
|
|
9,401
|
|
|
10,038
|
|
|
0.7
|
%
|
|||
Boston Market Corporation (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (9.55%), 12/16/2018
|
|
24,226
|
|
|
24,111
|
|
|
24,226
|
|
|
1.6
|
%
|
|||
BrandMuscle Holdings Inc. (m)
|
|
Internet Software & Services
|
|
L+8.50% (9.65%), 6/1/2022
|
|
24,500
|
|
|
24,128
|
|
|
24,500
|
|
|
1.6
|
%
|
|||
Cayan Holdings (m)
|
|
IT Services
|
|
L+8.50% (9.80%), 3/24/2022
|
|
20,000
|
|
|
19,609
|
|
|
20,000
|
|
|
1.3
|
%
|
|||
CDS U.S. Intermediate Holdings, Inc. (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (9.55%), 7/8/2023
|
|
7,927
|
|
|
7,798
|
|
|
7,967
|
|
|
0.5
|
%
|
|||
CIG Financial, LLC (a) (f) (m)
|
|
Consumer Finance
|
|
10.50%, 6/30/2019
|
|
13,000
|
|
|
12,948
|
|
|
12,415
|
|
|
0.8
|
%
|
|||
CIG Financial, LLC (a) (f)
|
|
Consumer Finance
|
|
10.50%, 6/30/2019
|
|
1,000
|
|
|
1,000
|
|
|
955
|
|
|
0.1
|
%
|
|||
CREDITCORP (x)
|
|
Consumer Finance
|
|
12.00%, 7/15/2018
|
|
13,250
|
|
|
13,227
|
|
|
11,412
|
|
|
0.8
|
%
|
|||
Epic Health Services, Inc. (m)
|
|
Health Care Providers & Services
|
|
L+8.00% (9.23%), 3/17/2025
|
|
15,000
|
|
|
14,781
|
|
|
14,780
|
|
|
1.0
|
%
|
|||
Hertz Corp. (x)
|
|
Automobiles
|
|
7.63%, 6/1/2022
|
|
21,165
|
|
|
21,165
|
|
|
21,112
|
|
|
1.4
|
%
|
|||
J. C. Bromac Corporation (dba EagleRider, Inc.) (f) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.75% (10.05%), 2/10/2021
|
|
19,900
|
|
|
19,661
|
|
|
19,801
|
|
|
1.3
|
%
|
June 30, 2017
(Unaudited)
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
J. C. Bromac Corporation (dba EagleRider, Inc.) (f)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.75% (10.05%), 2/10/2021
|
|
$
|
4,484
|
|
|
$
|
4,484
|
|
|
$
|
4,461
|
|
|
0.3
|
%
|
NCP Finance Limited Partnership (j)
|
|
Consumer Finance
|
|
L+9.75% (11.00%), 10/1/2018
|
|
12,073
|
|
|
12,048
|
|
|
11,409
|
|
|
0.8
|
%
|
|||
Rx30 HoldCo, Inc. (m)
|
|
Health Care Technology
|
|
L+9.00% (10.15%), 6/15/2022
|
|
11,500
|
|
|
11,337
|
|
|
11,500
|
|
|
0.8
|
%
|
|||
Schulman Associates Institutional Review Board, Inc. (m)
|
|
Life Sciences Tools & Services
|
|
L+8.00% (9.15%), 6/3/2021
|
|
17,000
|
|
|
16,794
|
|
|
17,000
|
|
|
1.1
|
%
|
|||
TierPoint, LLC (m)
|
|
Technology
|
|
L+7.25% (8.48%), 5/5/2025
|
|
5,334
|
|
|
5,282
|
|
|
5,281
|
|
|
0.3
|
%
|
|||
U.S. Auto (m)
|
|
Diversified Consumer Services
|
|
L+11.75% (12.81%), 6/8/2020
|
|
30,000
|
|
|
29,684
|
|
|
29,400
|
|
|
1.9
|
%
|
|||
Sub Total Senior Secured Second Lien Debt
|
|
|
|
|
|
|
|
$
|
285,156
|
|
|
$
|
284,762
|
|
|
18.8
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Debt - 4.9% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Gold, Inc. (m)
|
|
Textiles, Apparel & Luxury Goods
|
|
10.00%, 6/30/2019
|
|
$
|
7,003
|
|
|
$
|
6,984
|
|
|
$
|
5,953
|
|
|
0.4
|
%
|
Park Ave RE Holdings, LLC (d) (l) (o)
|
|
Real Estate Management & Development
|
|
L+8.00% (13.00%), 12/29/2017
|
|
37,192
|
|
|
37,192
|
|
|
37,192
|
|
|
2.4
|
%
|
|||
Steel City Media (l)
|
|
Media
|
|
16.00%, 3/29/2020
|
|
22,207
|
|
|
21,969
|
|
|
20,874
|
|
|
1.4
|
%
|
|||
Xplornet Communications, Inc. (a) (j)
|
|
|
|
9.63%, 6/1/2022
|
|
10,000
|
|
|
10,000
|
|
|
10,375
|
|
|
0.7
|
%
|
|||
Zimbra, Inc. (t)
|
|
Software
|
|
12.00%, 7/10/2018
|
|
287
|
|
|
287
|
|
|
468
|
|
|
—
|
%
|
|||
Sub Total Subordinated Debt
|
|
|
|
|
|
|
|
$
|
76,432
|
|
|
$
|
74,862
|
|
|
4.9
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Collateralized Securities - 12.4% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Collateralized Securities - Debt Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fifth Street Senior Loan Fund I, LLC - 1A Class F (a) (p)
|
|
Diversified Investment Vehicles
|
|
L+7.50% (8.66%), 1/19/2027
|
|
$
|
10,728
|
|
|
$
|
9,181
|
|
|
$
|
8,612
|
|
|
0.6
|
%
|
Collateralized Securities - Equity Investment
(n)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
B&M CLO 2014-1, LTD. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
2.08%, 4/16/2026
|
|
$
|
40,250
|
|
|
$
|
17,487
|
|
|
$
|
14,493
|
|
|
1.0
|
%
|
CVP Cascade CLO, LTD. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 1/16/2026
|
|
31,000
|
|
|
9,362
|
|
|
6,157
|
|
|
0.4
|
%
|
|||
CVP Cascade CLO-2, LTD. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 7/18/2026
|
|
35,250
|
|
|
12,588
|
|
|
9,045
|
|
|
0.6
|
%
|
|||
Fifth Street Senior Loan Fund I, LLC - 2015-1A Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
11.51%, 1/19/2027
|
|
31,575
|
|
|
21,113
|
|
|
16,853
|
|
|
1.1
|
%
|
|||
Figueroa CLO 2014-1, LTD. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 1/15/2027
|
|
35,057
|
|
|
17,832
|
|
|
11,607
|
|
|
0.8
|
%
|
|||
MidOcean Credit CLO II, LLC Income Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
8.58%, 1/29/2025
|
|
37,600
|
|
|
21,820
|
|
|
19,624
|
|
|
1.3
|
%
|
|||
MidOcean Credit CLO III, LLC Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
9.31%, 7/21/2026
|
|
40,250
|
|
|
22,145
|
|
|
20,177
|
|
|
1.3
|
%
|
June 30, 2017
(Unaudited)
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
MidOcean Credit CLO IV, LLC Income Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
10.81%, 4/15/2027
|
|
$
|
21,500
|
|
|
$
|
14,316
|
|
|
$
|
12,727
|
|
|
0.7
|
%
|
NewStar Arlington Senior Loan Program LLC Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
21.75%, 7/25/2025
|
|
31,603
|
|
|
22,825
|
|
|
26,141
|
|
|
1.7
|
%
|
|||
OFSI Fund VI, Ltd. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
9.86%, 3/20/2025
|
|
38,000
|
|
|
16,617
|
|
|
15,589
|
|
|
1.0
|
%
|
|||
Related Fee Agreements (a) (s)
|
|
Diversified Investment Vehicles
|
|
|
|
—
|
|
|
8,750
|
|
|
6,878
|
|
|
0.5
|
%
|
|||
Silver Spring CLO, Ltd. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 10/16/2026
|
|
31,500
|
|
|
16,296
|
|
|
11,403
|
|
|
0.8
|
%
|
|||
WhiteHorse VIII, Ltd. CLO Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.79%, 5/1/2026
|
|
36,000
|
|
|
13,757
|
|
|
8,985
|
|
|
0.6
|
%
|
|||
Sub Total Collateralized Securities
|
|
|
|
|
|
|
|
$
|
224,089
|
|
|
$
|
188,291
|
|
|
12.4
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity/Other - 13.6% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Answers Corporation (e) (p)
|
|
Technology
|
|
|
|
909
|
|
|
$
|
11,361
|
|
|
$
|
13,873
|
|
|
0.9
|
%
|
|
Basho Technologies, Inc. - Series G Senior Participating Preferred Stock Warrant (e)
|
|
Software
|
|
Expire 3/9/2025
|
|
306,122
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Basho Technologies, Inc. - Series G Senior Preferred Stock (e)
|
|
Software
|
|
|
|
2,000,000
|
|
|
2,000
|
|
|
—
|
|
|
—
|
%
|
|||
California Resources Corp. - Preferred Equity (u)
|
|
Metals & Mining
|
|
9.00%
|
|
15,025,000
|
|
|
14,724
|
|
|
14,725
|
|
|
1.0
|
%
|
|||
Capstone Nutrition - Common Stock (fka Integrity Nutraceuticals, Inc.) (e) (o)
|
|
Food Products
|
|
|
|
6,023
|
|
|
1,630
|
|
|
—
|
|
|
—
|
%
|
|||
Capstone Nutrition - Class B and C Common Stock (fka Integrity Nutraceuticals, Inc.) (e) (o) (u)
|
|
Food Products
|
|
|
|
24,656
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Danish CRJ LTD. (a) (e) (p) (r)
|
|
Aerospace & Defense
|
|
|
|
5,002
|
|
|
1
|
|
|
254
|
|
|
—
|
%
|
|||
Evolution Research Group - Preferred Equity (e)
|
|
Health Care Providers & Services
|
|
8.00%
|
|
500,000
|
|
|
500
|
|
|
624
|
|
|
—
|
%
|
|||
Greenwave Holdings, Inc. - Series C Preferred Stock Warrant (e)
|
|
Internet Software & Services
|
|
Expire 8/16/2025
|
|
172,414
|
|
|
—
|
|
|
284
|
|
|
—
|
%
|
|||
Kahala Ireland OpCo Designated Activity Company - Common Equity (a) (e) (h) (o)
|
|
Aerospace & Defense
|
|
|
|
137
|
|
|
—
|
|
|
10,826
|
|
|
0.7
|
%
|
|||
Kahala Ireland OpCo Designated Activity Company - Profit Participating Note (a) (e) (h) (o)
|
|
Aerospace & Defense
|
|
|
|
3,250,000
|
|
|
2,838
|
|
|
3,250
|
|
|
0.2
|
%
|
|||
Kahala US OpCo LLC - Class A Preferred Units (e) (k) (o)
|
|
Aerospace & Defense
|
|
13.00%
|
|
4,413,472
|
|
|
4,161
|
|
|
4,413
|
|
|
0.3
|
%
|
|||
Mood Media Corporation - Warrants (e)
|
|
Business Services
|
|
|
|
121
|
|
|
27
|
|
|
119
|
|
|
—
|
%
|
|||
New Star Metals Inc. - Warrants (e)
|
|
Business Services
|
|
Expire 12/22/2036
|
|
133,074
|
|
|
151
|
|
|
156
|
|
|
—
|
%
|
|||
NexSteppe Inc. - Series C Preferred Stock Warrant (e)
|
|
Chemicals
|
|
Expire 3/9/2025
|
|
176,585
|
|
|
500
|
|
|
—
|
|
|
—
|
%
|
June 30, 2017
(Unaudited)
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
NMFC Senior Loan Program I, LLC (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
50,000
|
|
|
$
|
50,000
|
|
|
$
|
50,369
|
|
|
3.3
|
%
|
|
Orchid Underwriters Agency, LLC - Preferred Shares (e) (u)
|
|
Insurance Broker
|
|
|
|
5,000
|
|
|
113
|
|
|
703
|
|
|
0.1
|
%
|
|||
Orchid Underwriters Agency, LLC - Common Shares (e) (u)
|
|
Insurance Broker
|
|
|
|
5,000
|
|
|
—
|
|
|
12
|
|
|
—
|
%
|
|||
Park Ave RE Holdings, LLC - Common Shares (e) (o) (w)
|
|
Real Estate Management & Development
|
|
|
|
1,000
|
|
|
—
|
|
|
7,236
|
|
|
0.5
|
%
|
|||
Park Ave RE Holdings, LLC - Preferred Shares (o) (w)
|
|
Real Estate Management & Development
|
|
8.00%
|
|
47,290
|
|
|
23,645
|
|
|
23,645
|
|
|
1.6
|
%
|
|||
PennantPark Credit Opportunities Fund II, LP (a) (f) (g) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
7,262
|
|
|
7,262
|
|
|
7,225
|
|
|
0.5
|
%
|
||
South Grand MM CLO I, LLC (a) (f) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
29,524
|
|
|
29,095
|
|
|
28,491
|
|
|
1.9
|
%
|
||
Squan Holding Corp. - Class A Common Stock (e) (p)
|
|
Diversified Telecommunication Services
|
|
|
|
180,835
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Squan Holding Corp. - Series A Preferred Stock (e) (p)
|
|
Diversified Telecommunication Services
|
|
|
|
8,962
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Tax Defense Network, LLC (e)
|
|
Diversified Consumer Services
|
|
|
|
425
|
|
|
425
|
|
|
—
|
|
|
—
|
%
|
|||
Tennenbaum Waterman Fund, L.P. (a)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
10,000
|
|
|
10,000
|
|
|
10,712
|
|
|
0.7
|
%
|
||
TCG BDC, Inc. - Common Stock (fka Carlyle GMS Finance, Inc.) (a)
|
|
Diversified Investment Vehicles
|
|
|
|
404,899
|
|
|
7,765
|
|
|
7,292
|
|
|
0.5
|
%
|
|||
The SAVO Group, Ltd. - Warrants (e)
|
|
Internet Software & Services
|
|
Expire 3/23/2023
|
|
138,000
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
THL Credit Greenway Fund II LLC (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
13,806
|
|
|
13,806
|
|
|
13,043
|
|
|
0.9
|
%
|
||
Twentyeighty, Inc. - Class A Common Equity (e)
|
|
Media
|
|
|
|
54,586
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
U.S. Auto - Series A Common Units (e) (u)
|
|
Diversified Consumer Services
|
|
|
|
10,000
|
|
|
10
|
|
|
—
|
|
|
—
|
%
|
|||
U.S. Auto - Series A Preferred Units (e) (u)
|
|
Diversified Consumer Services
|
|
|
|
490
|
|
|
490
|
|
|
406
|
|
|
—
|
%
|
|||
World Business Lenders, LLC (e)
|
|
Consumer Finance
|
|
|
|
3,750,000
|
|
|
3,750
|
|
|
3,759
|
|
|
0.2
|
%
|
|||
Xplornet Communications, Inc. - Warrants (a) (e)
|
|
Diversified Telecommunication Services
|
|
Expire 10/25/2023
|
|
10,284
|
|
|
—
|
|
|
4,344
|
|
|
0.3
|
%
|
|||
Zimbra, Inc. - Warrants (Third Lien Bridge Note) (e)
|
|
Software
|
|
Expire 7/11/2023
|
|
1,000,000
|
|
|
—
|
|
|
211
|
|
|
—
|
%
|
|||
Sub Total Equity/Other
|
|
|
|
|
|
|
|
$
|
184,254
|
|
|
$
|
205,972
|
|
|
13.6
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
TOTAL INVESTMENTS - 161.1% (b)
|
|
|
|
|
|
|
|
$
|
2,547,241
|
|
|
$
|
2,442,299
|
|
|
161.1
|
%
|
(a)
|
All of the Company's investments, except the investments noted by this footnote, are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act"). Under the 1940 Act, we may not require any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. Qualifying assets represent 77.5% of the Company's total assets. The significant majority of all investments held are deemed to be illiquid.
|
(b)
|
Percentages are based on net assets of $
1,516,005
as of
June 30, 2017
.
|
(c)
|
The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's board of directors as required by the 1940 Act. (See Note 3 to the consolidated financial statements).
|
(d)
|
As of the date of election, the portfolio company elected to pay cash interest, noting the company has the option to elect a portion of the interest to be payment-in-kind (“PIK”).
|
(e)
|
Non-income producing at
June 30, 2017
.
|
Portfolio Company Name
|
|
Investment Type
|
|
Commitment Type
|
|
Original Commitment
|
|
Remaining Commitment
|
||||
Adams Publishing Group, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
$
|
4,432
|
|
|
$
|
4,432
|
|
Amteck, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
5,000
|
|
|
5,000
|
|
||
Berner Food & Beverage LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,693
|
|
|
2,693
|
|
||
CCW, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
3,000
|
|
|
3,000
|
|
||
CIG Financial, LLC
|
|
Senior Secured Second Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
4,000
|
|
||
Icynene US Acquisition Corp.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
5,000
|
|
||
Icynene US Acquisition Corp.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
5,000
|
|
|
5,000
|
|
||
InMotion Entertainment Group, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,200
|
|
|
1,843
|
|
||
J. C. Bromac Corporation (dba EagleRider, Inc.)
|
|
Senior Secured Second Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
516
|
|
||
Midwest Can Company, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
828
|
|
|
828
|
|
||
Midwest Can Company, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,035
|
|
|
883
|
|
||
Motion Recruitment Partners, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,000
|
|
|
2,000
|
|
||
Orchid Underwriters Agency, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,200
|
|
|
2,200
|
|
||
PennantPark Credit Opportunities Fund II, LP
|
|
Equity/Other
|
|
Equity capital commitment
|
|
10,800
|
|
|
538
|
|
||
PetVet Care Centers, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
6,704
|
|
|
6,704
|
|
||
PetVet Care Centers, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,676
|
|
|
1,584
|
|
||
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
6,579
|
|
|
5,024
|
|
||
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,316
|
|
|
1,316
|
|
||
Pure Barre, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,500
|
|
|
2,300
|
|
||
RVNB Holdings, Inc. (dba All My Sons Moving & Storage)
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
852
|
|
|
852
|
|
||
South Grand MM CLO I, LLC
|
|
Equity/Other
|
|
Equity capital commitment
|
|
35,000
|
|
|
5,477
|
|
||
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
1,000
|
|
||
Tillamook Country Smoker, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,696
|
|
|
2,561
|
|
||
VetCor Professional Practices LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,574
|
|
|
1,940
|
|
||
Total
|
|
|
|
|
|
$
|
119,085
|
|
|
$
|
66,691
|
|
(g)
|
The investment is subject to a three year lock-up restriction on withdrawals in year 4.
|
(h)
|
The Company's investment is held through the consolidated subsidiaries, Kahala Aviation Holdings, LLC and Kahala LuxCo, which own 100% of the equity of the operating company, Kahala Ireland OpCo Designated Activity Company.
|
(i)
|
The Company's investment or a portion thereof is pledged as collateral under the Wells Fargo Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.
|
(j)
|
The Company's investment or a portion thereof is pledged as collateral under the Citi Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.
|
(k)
|
The Company's investment is held through the consolidated subsidiaries, Kahala Aviation Holdings, LLC and Kahala Aviation US, Inc. which own 100% of the equity of the operating company, Kahala US OpCo LLC.
|
Portfolio Company
|
|
Investment Type
|
|
Cash
|
|
PIK
|
|
All-in Rate
|
|
PIK Earned for the three months ended June 30, 2017
|
|||||
Basho Technologies, Inc.
|
|
Senior Secured First Lien Debt
|
|
17.00
|
%
|
|
—
|
%
|
|
17.00
|
%
|
|
$
|
—
|
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.)
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
13.80
|
%
|
|
13.80
|
%
|
|
—
|
|
|
Greenwave Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
10.00
|
%
|
|
3.00
|
%
|
|
13.00
|
%
|
|
120
|
|
|
ILC Dover LP
|
|
Senior Secured First Lien Debt
|
|
8.23
|
%
|
|
2.00
|
%
|
|
10.23
|
%
|
|
71
|
|
|
Kahala Ireland OpCo Designated Activity Company
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
13.00
|
%
|
|
13.00
|
%
|
|
62
|
|
|
Kahala US OpCo LLC
|
|
Senior Secured First Lien Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
—
|
|
|
Lightsquared LP
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
9.97
|
%
|
|
9.97
|
%
|
|
264
|
|
|
MMM Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
10.25
|
%
|
|
—
|
%
|
|
10.25
|
%
|
|
—
|
|
|
MSO of Puerto Rico, LLC
|
|
Senior Secured First Lien Debt
|
|
10.25
|
%
|
|
—
|
%
|
|
10.25
|
%
|
|
—
|
|
|
New Star Metals Inc.
|
|
Senior Secured First Lien Debt
|
|
11.00
|
%
|
|
—
|
%
|
|
11.00
|
%
|
|
(180
|
)
|
|
NexSteppe Inc.
|
|
Senior Secured First Lien Debt
|
|
10.00
|
%
|
|
8.00
|
%
|
|
18.00
|
%
|
|
—
|
|
|
Park Ave RE Holdings, LLC
|
|
Subordinated Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
—
|
|
|
Steel City Media
|
|
Subordinated Debt
|
|
8.00
|
%
|
|
8.00
|
%
|
|
16.00
|
%
|
|
437
|
|
|
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
9.80
|
%
|
|
4.00
|
%
|
|
13.80
|
%
|
|
—
|
|
|
Twentyeighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
4.62
|
%
|
|
4.50
|
%
|
|
9.12
|
%
|
|
22
|
|
|
Twentyeighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
1.00
|
%
|
|
7.00
|
%
|
|
8.00
|
%
|
|
106
|
|
|
Twentyeighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
0.25
|
%
|
|
8.75
|
%
|
|
9.00
|
%
|
|
119
|
|
|
Xplornet Communications, Inc.
|
|
Subordinated Debt
|
|
—
|
%
|
|
13.00
|
%
|
|
13.00
|
%
|
|
946
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
$
|
1,967
|
|
(m)
|
The Company's investment or a portion thereof is pledged as collateral under the UBS Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.
|
(n)
|
For equity investments in Collateralized Securities, the effective yield is presented in place of the investment coupon rate for each investment. Refer to footnote (v) for a further description of an equity investment in a Collateralized Security.
|
(o)
|
The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be "non-controlled" when we own 25% or less of the portfolio company's voting securities and "controlled" when we own more than 25% of the portfolio company's voting securities.
|
(p)
|
The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as "non-affiliated" when we own less than 5% of a portfolio company's voting securities and "affiliated" when we own 5% or more of a portfolio company's voting securities.
|
(q)
|
Unless otherwise indicated, all investments in the schedule of investments are non-affiliated, non-controlled investments.
|
(r)
|
The Company's investment is held through the Consolidated Holding Company, Kahala Aviation Holdings, LLC, which owns 49% of the operating company, Danish CRJ LTD.
|
(s)
|
Related Fee Agreements consist of one investment with a fair value of $0.5 million that is classified as a Non-affiliated Investment and five investments with a total fair value of $6.3 million that are classified as Affiliated Investments.
|
(t)
|
The investment is on non-accrual status as of
June 30, 2017
.
|
(u)
|
Investments are held in the taxable wholly-owned, consolidated subsidiary, 54
th
Street Equity Holdings, Inc.
|
(v)
|
The Collateralized Securities - debt investments and equity investments are considered equity positions in the Collateralized Loan Obligation funds. Equity investments are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund’s securities less contractual payments to debt holders and fund expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized.
|
(w)
|
The Company's investment is held through the consolidated subsidiary, Park Ave RE, Inc., which owns 100% of the equity of the operating company, Park Ave RE Holdings, LLC.
|
(x)
|
The Company's investment or a portion thereof is pledged as collateral under the JPMC PB Account. Individual investments can be divided into parts which are pledged to separate credit facilities.
|
(y)
|
The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate ("LIBOR" or "L") or Prime ("P") and which reset daily, monthly, quarterly or semiannually. For each, the Company has provided the spread over LIBOR or Prime and the current interest rate in effect at June 30, 2017. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable.
|
|
At June 30, 2017
|
|||||
|
Investments at
Fair Value
|
|
Percentage of
Total Portfolio
|
|||
Diversified Investment Vehicles
|
$
|
305,423
|
|
|
12.5
|
%
|
Aerospace & Defense
|
188,822
|
|
|
7.7
|
|
|
Hotels, Restaurants & Leisure
|
145,314
|
|
|
5.9
|
|
|
Business Services
|
141,995
|
|
|
5.8
|
|
|
Diversified Consumer Services
|
137,834
|
|
|
5.7
|
|
|
Health Care
|
137,505
|
|
|
5.6
|
|
|
Diversified Telecommunication Services
|
102,989
|
|
|
4.2
|
|
|
Health Care Providers & Services
|
96,606
|
|
|
4.0
|
|
|
Technology
|
95,191
|
|
|
3.9
|
|
|
Media
|
93,556
|
|
|
3.8
|
|
|
Commercial Services & Supplies
|
86,303
|
|
|
3.5
|
|
|
Internet Software & Services
|
74,065
|
|
|
3.0
|
|
|
Real Estate Management & Development
|
68,073
|
|
|
2.8
|
|
|
Food Products
|
64,993
|
|
|
2.7
|
|
|
Chemicals
|
61,402
|
|
|
2.5
|
|
|
Professional Services
|
58,385
|
|
|
2.4
|
|
|
IT Services
|
52,309
|
|
|
2.2
|
|
|
Energy Equipment & Services
|
46,842
|
|
|
1.9
|
|
|
Software
|
46,127
|
|
|
1.9
|
|
|
Metals & Mining
|
43,836
|
|
|
1.8
|
|
|
Consumer Finance
|
39,950
|
|
|
1.7
|
|
|
Electronic Equipment, Instruments & Components
|
39,481
|
|
|
1.6
|
|
|
Auto Components
|
36,882
|
|
|
1.5
|
|
|
Communications Equipment
|
30,404
|
|
|
1.3
|
|
|
Gaming/Lodging
|
29,697
|
|
|
1.2
|
|
|
Transportation Infrastructure
|
27,719
|
|
|
1.1
|
|
|
Specialty Retail
|
25,820
|
|
|
1.1
|
|
|
Diversified Financial Services
|
24,585
|
|
|
1.0
|
|
|
Automobiles
|
21,112
|
|
|
0.9
|
|
|
Insurance
|
20,665
|
|
|
0.8
|
|
|
Containers & Packaging
|
20,242
|
|
|
0.8
|
|
|
Building Products
|
20,047
|
|
|
0.8
|
|
|
Life Sciences Tools & Services
|
17,000
|
|
|
0.7
|
|
|
Distributors
|
13,772
|
|
|
0.6
|
|
|
Health Care Technology
|
11,500
|
|
|
0.5
|
|
|
Machinery
|
9,900
|
|
|
0.4
|
|
|
Textiles, Apparel & Luxury Goods
|
5,953
|
|
|
0.2
|
|
|
Total
|
$
|
2,442,299
|
|
|
100.0
|
%
|
December 31, 2016
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (n) (x)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured First Lien
Debt - 106.6% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Abaco Systems Holding Corp. (i)
|
|
Business Services
|
|
L+6.00% (7.00%), 12/7/2021
|
|
$
|
23,940
|
|
|
$
|
23,462
|
|
|
$
|
23,461
|
|
|
1.5
|
%
|
Ability Networks Inc. (j)
|
|
Health Care Providers & Services
|
|
L+5.00% (6.00%), 5/14/2021
|
|
13,712
|
|
|
13,631
|
|
|
13,712
|
|
|
0.9
|
%
|
|||
Adams Publishing Group, LLC (i)
|
|
Media
|
|
P+4.25% (8.00%), 11/3/2020
|
|
15,178
|
|
|
14,904
|
|
|
15,178
|
|
|
1.0
|
%
|
|||
Affinion Group, Inc. (j)
|
|
Business Services
|
|
L+5.25% (6.75%), 4/30/2018
|
|
9,974
|
|
|
9,827
|
|
|
9,910
|
|
|
0.6
|
%
|
|||
Amports, Inc. (m)
|
|
Transportation Infrastructure
|
|
L+8.14% (9.14%), 5/19/2020
|
|
15,000
|
|
|
14,936
|
|
|
14,775
|
|
|
1.0
|
%
|
|||
Amteck, LLC (f) (i)
|
|
Commercial Services & Supplies
|
|
L+8.50% (9.50%), 7/2/2020
|
|
23,438
|
|
|
23,063
|
|
|
22,852
|
|
|
1.5
|
%
|
|||
Answers Corporation (i) (j) (t)
|
|
Internet Software & Services
|
|
P+6.25% (10.00%), 10/3/2021
|
|
34,475
|
|
|
33,589
|
|
|
17,065
|
|
|
1.1
|
%
|
|||
AP Gaming I, LLC (i) (j)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (9.25%), 12/20/2020
|
|
30,353
|
|
|
30,148
|
|
|
30,150
|
|
|
2.0
|
%
|
|||
APCO Holdings (i)
|
|
Diversified Consumer Services
|
|
L+6.00% (7.00%), 1/29/2022
|
|
8,868
|
|
|
8,632
|
|
|
8,646
|
|
|
0.6
|
%
|
|||
Applied Merchant Systems West Coast, Inc. (m)
|
|
Diversified Financial Services
|
|
L+11.50% (12.50%), 10/26/2020
|
|
26,122
|
|
|
25,714
|
|
|
25,599
|
|
|
1.7
|
%
|
|||
Ascensus, Inc. (j)
|
|
IT Services
|
|
L+4.50% (5.50%), 12/3/2022
|
|
17,831
|
|
|
16,915
|
|
|
17,786
|
|
|
1.2
|
%
|
|||
Asurion LLC (j)
|
|
IT Services
|
|
L+3.75% (4.75%), 11/3/2023
|
|
249
|
|
|
248
|
|
|
253
|
|
|
—
|
%
|
|||
Avaya, Inc. Term Loan B-3 (j)
|
|
Communications Equipment
|
|
L+4.50% (5.39%), 10/26/2017
|
|
9,685
|
|
|
8,784
|
|
|
8,384
|
|
|
0.5
|
%
|
|||
Avaya, Inc. Term Loan B-6 (j)
|
|
Communications Equipment
|
|
L+5.50% (6.50%), 3/31/2018
|
|
8,457
|
|
|
8,461
|
|
|
7,353
|
|
|
0.5
|
%
|
|||
Avaya, Inc. Term Loan B-7 (i) (j)
|
|
Communications Equipment
|
|
L+5.25% (6.25%), 5/29/2020
|
|
9,793
|
|
|
9,725
|
|
|
8,489
|
|
|
0.5
|
%
|
|||
AxleTech International, LLC (i)
|
|
Machinery
|
|
L+6.50% (7.50%), 1/5/2021
|
|
19,600
|
|
|
19,467
|
|
|
18,914
|
|
|
1.2
|
%
|
|||
Basho Technologies, Inc. (d) (l) (t)
|
|
Software
|
|
17.00%, 3/9/2018
|
|
10,595
|
|
|
10,294
|
|
|
3,814
|
|
|
0.2
|
%
|
|||
Basho Technologies, Inc. (d) (t)
|
|
Software
|
|
17.00%, 3/31/2017
|
|
2,550
|
|
|
2,550
|
|
|
918
|
|
|
0.1
|
%
|
|||
BDS Solutions Group, LLC (f) (i) (m)
|
|
Business Services
|
|
L+8.75% (9.59%), 6/1/2021
|
|
36,830
|
|
|
36,094
|
|
|
36,830
|
|
|
2.4
|
%
|
|||
Blount International, Inc. (j)
|
|
Machinery
|
|
L+6.25% (7.25%), 4/12/2023
|
|
12,469
|
|
|
12,128
|
|
|
12,578
|
|
|
0.8
|
%
|
|||
Broder Bros, Co. (m)
|
|
Distributors
|
|
L+5.75% (7.00%), 6/3/2021
|
|
7,275
|
|
|
7,158
|
|
|
7,275
|
|
|
0.5
|
%
|
|||
Broder Bros, Co. (m)
|
|
Distributors
|
|
L+12.25% (13.50%), 6/3/2021
|
|
7,350
|
|
|
7,232
|
|
|
7,350
|
|
|
0.5
|
%
|
|||
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) (l) (o) (t)
|
|
Food Products
|
|
L+12.50% (13.50%), 4/28/2019
|
|
56,470
|
|
|
50,053
|
|
|
19,708
|
|
|
1.3
|
%
|
|||
Catapult Learning, LLC (i) (m)
|
|
Diversified Consumer Services
|
|
L+7.99% (8.99%), 7/16/2020
|
|
27,500
|
|
|
27,109
|
|
|
26,537
|
|
|
1.7
|
%
|
|||
CCW, LLC (f) (i)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.00%), 3/21/2021
|
|
24,625
|
|
|
24,268
|
|
|
24,379
|
|
|
1.6
|
%
|
|||
Central Security Group, Inc. (i) (j)
|
|
Commercial Services & Supplies
|
|
L+5.63% (6.63%), 10/6/2020
|
|
25,554
|
|
|
25,200
|
|
|
25,458
|
|
|
1.7
|
%
|
|||
CH Hold Corp. (f) (i)
|
|
Diversified Consumer Services
|
|
L+5.25% (6.25%), 11/20/2019
|
|
16,572
|
|
|
16,434
|
|
|
16,531
|
|
|
1.1
|
%
|
|||
Chicken Soup for the Soul Publishing, LLC (i)
|
|
Media
|
|
L+6.25% (7.50%), 1/8/2019
|
|
28,543
|
|
|
28,331
|
|
|
27,116
|
|
|
1.8
|
%
|
December 31, 2016
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (n) (x)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
Clover Technologies Group, LLC (j)
|
|
Commercial Services & Supplies
|
|
P+3.50% (7.25%), 5/8/2020
|
|
$
|
14,012
|
|
|
$
|
13,935
|
|
|
$
|
13,265
|
|
|
0.9
|
%
|
Contura Energy Inc.
|
|
Energy Equipment & Services
|
|
10.00%, 8/1/2021
|
|
10,000
|
|
|
10,534
|
|
|
10,650
|
|
|
0.7
|
%
|
|||
ConvergeOne Holdings Corp. (j)
|
|
Diversified Consumer Services
|
|
L+5.38% (6.38%), 6/17/2020
|
|
16,601
|
|
|
16,470
|
|
|
16,518
|
|
|
1.1
|
%
|
|||
Covenant Surgical Partners
|
|
Health Care
|
|
(8.75%), 8/1/2019
|
|
10,000
|
|
|
9,457
|
|
|
9,675
|
|
|
0.6
|
%
|
|||
Cvent, Inc. (j)
|
|
Internet Software & Services
|
|
L+5.00% (6.00%), 11/29/2023
|
|
10,000
|
|
|
9,900
|
|
|
10,075
|
|
|
0.7
|
%
|
|||
Danish CRJ LTD. (a) (p)
|
|
Aerospace & Defense
|
|
13.50%
|
|
20
|
|
|
7
|
|
|
20
|
|
|
—
|
%
|
|||
DigiCert, Inc (j)
|
|
Internet Software & Services
|
|
L+5.00% (6.00%), 10/21/2021
|
|
10,890
|
|
|
10,627
|
|
|
10,836
|
|
|
0.7
|
%
|
|||
Doskocil Manufacturing Company, Inc. (m)
|
|
Household Durables
|
|
L+8.40% (9.40%), 11/10/2020
|
|
15,000
|
|
|
14,797
|
|
|
15,000
|
|
|
1.0
|
%
|
|||
Eagle Rx, LLC (i)
|
|
Health Care Providers & Services
|
|
L+6.00% (7.00%), 8/15/2019
|
|
14,533
|
|
|
14,495
|
|
|
14,533
|
|
|
1.0
|
%
|
|||
ECI Acquisition Holdings, Inc. (i)
|
|
Internet Software & Services
|
|
L+6.25% (7.25%), 3/11/2019
|
|
12,775
|
|
|
12,738
|
|
|
12,584
|
|
|
0.8
|
%
|
|||
Emergency Communications Network, LLC (m)
|
|
Internet Software & Services
|
|
L+10.08% (11.33%), 6/12/2021
|
|
19,750
|
|
|
19,530
|
|
|
19,552
|
|
|
1.3
|
%
|
|||
ERG Holding Company (i) (m)
|
|
Health Care Providers & Services
|
|
L+6.75% (8.00%), 4/4/2019
|
|
34,650
|
|
|
34,194
|
|
|
34,130
|
|
|
2.2
|
%
|
|||
Excelitas Technologies Corp. (j)
|
|
Electronic Equipment, Instruments & Components
|
|
L+5.00% (6.00%), 11/2/2020
|
|
13,761
|
|
|
13,714
|
|
|
13,451
|
|
|
0.9
|
%
|
|||
Genesys Telecommunications Laboratories, Inc. (j)
|
|
Diversified Telecommunication Services
|
|
L+5.25% (6.25%), 12/1/2023
|
|
25,000
|
|
|
24,628
|
|
|
25,422
|
|
|
1.7
|
%
|
|||
Greenwave Holdings, Inc. (l)
|
|
Internet Software & Services
|
|
13.00%, 7/8/2019
|
|
15,693
|
|
|
15,543
|
|
|
15,693
|
|
|
1.0
|
%
|
|||
GTCR Valor Companies, Inc. (j)
|
|
Software
|
|
L+6.00% (7.00%), 6/16/2023
|
|
24,875
|
|
|
23,956
|
|
|
24,587
|
|
|
1.6
|
%
|
|||
HC Group Holdings III, Inc. (j)
|
|
Health Care
|
|
L+5.00% (6.00%), 4/7/2022
|
|
14,932
|
|
|
14,665
|
|
|
14,298
|
|
|
0.9
|
%
|
|||
Icynene US Acquisition Corp. (f) (i) (m)
|
|
Building Products
|
|
L+6.25% (7.25%), 11/4/2020
|
|
21,286
|
|
|
21,012
|
|
|
21,286
|
|
|
1.4
|
%
|
|||
Icynene US Acquisition Corp. (f)
|
|
Building Products
|
|
L+6.25% (7.25%), 11/4/2019
|
|
1,000
|
|
|
1,000
|
|
|
1,000
|
|
|
0.1
|
%
|
|||
ILC Dover LP (i) (l)
|
|
Aerospace & Defense
|
|
L+9.00% (10.00%), 3/20/2020
|
|
14,101
|
|
|
14,064
|
|
|
11,986
|
|
|
0.8
|
%
|
|||
Indivior Finance S.A.R.L. (j)
|
|
Health Care
|
|
L+6.00% (7.00%), 12/19/2019
|
|
9,244
|
|
|
9,244
|
|
|
9,279
|
|
|
0.6
|
%
|
|||
InMotion Entertainment Group, LLC (f) (i)
|
|
Specialty Retail
|
|
L+7.75% (9.00%), 10/1/2018
|
|
14,450
|
|
|
14,328
|
|
|
14,450
|
|
|
0.9
|
%
|
|||
IPC Corp. (j)
|
|
Diversified Telecommunication Services
|
|
L+4.50% (5.50%), 8/6/2021
|
|
9,187
|
|
|
9,040
|
|
|
8,796
|
|
|
0.6
|
%
|
|||
Jackson Hewitt, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+7.00% (8.00%), 7/30/2020
|
|
6,860
|
|
|
6,810
|
|
|
6,577
|
|
|
0.4
|
%
|
|||
K2 Pure Solutions NoCal, L.P. (i)
|
|
Chemicals
|
|
L+6.00% (7.00%), 8/19/2019
|
|
6,500
|
|
|
6,442
|
|
|
6,500
|
|
|
0.4
|
%
|
|||
Kahala Ireland OpCo Designated Activity Company (a) (d) (l) (o)
|
|
Aerospace & Defense
|
|
L+8.00% (13.00%), 12/23/2028
|
|
149,409
|
|
|
149,409
|
|
|
149,409
|
|
|
9.8
|
%
|
|||
Kahala US OpCo LLC (d) (l) (o)
|
|
Aerospace & Defense
|
|
L+8.00% (13.00%), 12/23/2028
|
|
2,690
|
|
|
2,690
|
|
|
2,690
|
|
|
0.2
|
%
|
December 31, 2016
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (n) (x)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
Kissner HLD
|
|
Chemicals
|
|
8.38%, 12/1/2022
|
|
$
|
9,960
|
|
|
$
|
9,942
|
|
|
$
|
10,060
|
|
|
0.7
|
%
|
Land Holdings I, LLC (m)
|
|
Hotels, Restaurants & Leisure
|
|
12.00%, 6/26/2019
|
|
14,250
|
|
|
14,108
|
|
|
14,250
|
|
|
0.9
|
%
|
|||
LenderLive Services, LLC
|
|
Business Services
|
|
L+12.00% (12.69%), 8/11/2020
|
|
10,000
|
|
|
9,819
|
|
|
9,800
|
|
|
0.6
|
%
|
|||
Lightsquared LP (l)
|
|
Diversified Telecommunications Services
|
|
L+8.75% (9.75%), 6/15/2020
|
|
10,246
|
|
|
9,371
|
|
|
9,529
|
|
|
0.6
|
%
|
|||
MCS AMS Sub-Holdings LLC (j)
|
|
Real Estate Management & Development
|
|
L+6.50% (7.50%), 10/15/2019
|
|
11,906
|
|
|
11,701
|
|
|
11,073
|
|
|
0.7
|
%
|
|||
Medical Depot Holdings, Inc. (i)
|
|
Health Care
|
|
L+5.50% (6.50%), 1/3/2023
|
|
20,278
|
|
|
18,453
|
|
|
18,504
|
|
|
1.2
|
%
|
|||
Metal Services LLC (j)
|
|
Metals & Mining
|
|
L+7.50% (8.50%), 6/30/2019
|
|
10,917
|
|
|
10,783
|
|
|
10,944
|
|
|
0.7
|
%
|
|||
MMM Holdings, LLC (j) (l)
|
|
Health Care
|
|
L+8.25% (9.75%), 6/28/2019
|
|
7,153
|
|
|
7,072
|
|
|
6,938
|
|
|
0.5
|
%
|
|||
Monitronics International, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+5.50% (6.50%), 9/30/2022
|
|
2,993
|
|
|
2,978
|
|
|
3,018
|
|
|
0.2
|
%
|
|||
Montreign Operating Company, LLC (m)
|
|
Hotels, Restaurants, & Leisure
|
|
L+8.25% (9.25%), 1/24/2023
|
|
25,000
|
|
|
24,500
|
|
|
25,187
|
|
|
1.6
|
%
|
|||
Motion Recruitment Partners, LLC (f) (i)
|
|
Professional Services
|
|
L+6.00% (7.00%), 2/13/2020
|
|
18,000
|
|
|
17,733
|
|
|
18,000
|
|
|
1.2
|
%
|
|||
Motorsports Aftermarket Group, Inc. (i) (j)
|
|
Auto Components
|
|
L+4.00% (5.00%), 5/14/2021
|
|
26,309
|
|
|
24,914
|
|
|
12,716
|
|
|
0.8
|
%
|
|||
MSO of Puerto Rico, LLC (j) (l)
|
|
Health Care
|
|
L+8.25% (9.75%), 6/28/2019
|
|
5,200
|
|
|
5,142
|
|
|
5,044
|
|
|
0.3
|
%
|
|||
Murray Energy Holdings Co.
|
|
Energy Equipment & Services
|
|
L+7.25% (8.25%), 4/16/2020
|
|
9,974
|
|
|
9,222
|
|
|
9,506
|
|
|
0.6
|
%
|
|||
MWI Holdings, Inc. (j)
|
|
Machinery
|
|
L+5.50% (6.50%), 6/28/2020
|
|
9,950
|
|
|
9,862
|
|
|
9,950
|
|
|
0.6
|
%
|
|||
National Technical Systems, Inc. (f) (i)
|
|
Professional Services
|
|
L+6.25% (7.25%), 6/12/2021
|
|
19,326
|
|
|
19,072
|
|
|
18,359
|
|
|
1.2
|
%
|
|||
New Star Metals Inc. (l)
|
|
Business Services
|
|
L+9.50% (11.00%), 12/22/2021
|
|
32,707
|
|
|
32,020
|
|
|
32,023
|
|
|
2.1
|
%
|
|||
NexSteppe Inc. (l)
|
|
Chemicals
|
|
15.00%, 3/30/2018
|
|
10,741
|
|
|
10,444
|
|
|
8,056
|
|
|
0.5
|
%
|
|||
Noosa Acquirer, Inc. (i) (m)
|
|
Food Products
|
|
L+5.25% (6.25%), 11/21/2020
|
|
25,000
|
|
|
24,756
|
|
|
25,000
|
|
|
1.6
|
%
|
|||
North Atlantic Trading Company, Inc. (i) (j)
|
|
Food Products
|
|
P+5.50% (9.25%), 1/13/2020
|
|
17,331
|
|
|
17,304
|
|
|
17,158
|
|
|
1.1
|
%
|
|||
NTM Acquisition Corp. (i)
|
|
Media
|
|
L+6.25% (7.25%), 6/7/2022
|
|
12,431
|
|
|
12,260
|
|
|
12,245
|
|
|
0.8
|
%
|
|||
Orchid Underwriters Agency, LLC (f) (m)
|
|
Insurance Broker
|
|
10.00%, 11/6/2019
|
|
13,955
|
|
|
13,806
|
|
|
13,955
|
|
|
0.9
|
%
|
|||
Otter Box Holdings, Inc. (j)
|
|
Electronic Equipment, Instruments & Components
|
|
L+4.75% (5.75%), 6/3/2020
|
|
14,797
|
|
|
14,591
|
|
|
14,612
|
|
|
1.0
|
%
|
|||
PeopLease Holdings, LLC (i)
|
|
Commercial Services & Supplies
|
|
L+9.00% (10.00%), 2/26/2021
|
|
20,000
|
|
|
19,832
|
|
|
20,000
|
|
|
1.3
|
%
|
|||
PGX Holdings, Inc. (j)
|
|
Transportation Infrastructure
|
|
L+5.25% (6.25%), 9/29/2020
|
|
13,172
|
|
|
13,071
|
|
|
13,148
|
|
|
0.9
|
%
|
|||
Plaskolite, LLC (j)
|
|
Chemicals
|
|
L+4.75% (5.75%), 11/3/2022
|
|
8,693
|
|
|
8,623
|
|
|
8,693
|
|
|
0.6
|
%
|
|||
Premier Dental Services, Inc. (i) (j)
|
|
Health Care Providers & Services
|
|
L+6.50% (7.50%), 11/1/2018
|
|
22,488
|
|
|
22,440
|
|
|
22,319
|
|
|
1.5
|
%
|
December 31, 2016
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (n) (x)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
Premier Global Services, Inc. (j)
|
|
Diversified Telecommunication Services
|
|
L+6.50% (7.50%), 12/8/2021
|
|
$
|
9,871
|
|
|
$
|
9,528
|
|
|
$
|
9,606
|
|
|
0.6
|
%
|
Pre-Paid Legal Services, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+5.25% (6.50%), 7/1/2019
|
|
13,009
|
|
|
13,006
|
|
|
13,021
|
|
|
0.9
|
%
|
|||
Pride Plating, Inc. (i)
|
|
Aerospace & Defense
|
|
L+5.50% (6.50%), 6/13/2019
|
|
7,188
|
|
|
7,153
|
|
|
6,864
|
|
|
0.4
|
%
|
|||
PSKW, LLC (i)
|
|
Health Care Providers & Services
|
|
L+4.25% (5.25%), 11/25/2021
|
|
2,025
|
|
|
2,008
|
|
|
2,005
|
|
|
0.1
|
%
|
|||
PSKW, LLC (m)
|
|
Health Care Providers & Services
|
|
L+8.39% (9.39%), 11/25/2021
|
|
17,750
|
|
|
17,460
|
|
|
17,217
|
|
|
1.1
|
%
|
|||
PT Network, LLC (f) (i)
|
|
Health Care
|
|
L+6.50% (7.50%), 11/30/2021
|
|
17,105
|
|
|
16,858
|
|
|
16,934
|
|
|
1.1
|
%
|
|||
Pure Barre, LLC (f) (i) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.00%), 6/11/2020
|
|
27,823
|
|
|
27,444
|
|
|
27,545
|
|
|
1.8
|
%
|
|||
Resco Products, Inc. (i)
|
|
Metals & Mining
|
|
P+4.75% (8.50%), 3/31/2017
|
|
10,000
|
|
|
10,000
|
|
|
9,200
|
|
|
0.6
|
%
|
|||
RVNB Holdings, Inc. (dba All My Sons Moving & Storage) (f) (i)
|
|
Diversified Consumer Services
|
|
L+6.50% (7.50%), 2/25/2020
|
|
21,733
|
|
|
21,449
|
|
|
21,733
|
|
|
1.4
|
%
|
|||
Sage Automotive Holdings, Inc. (j)
|
|
Auto Components
|
|
L+5.00% (6.00%), 10/8/2020
|
|
15,000
|
|
|
14,851
|
|
|
14,850
|
|
|
1.0
|
%
|
|||
SHO Holding II Corporation (j)
|
|
Specialty Retail
|
|
L+5.00% (6.00%), 10/27/2022
|
|
11,880
|
|
|
11,779
|
|
|
11,821
|
|
|
0.8
|
%
|
|||
Squan Holding Corp.
|
|
Diversified Telecommunication Services
|
|
L+4.00% (5.00%), 10/10/2019
|
|
10,455
|
|
|
6,903
|
|
|
6,895
|
|
|
0.5
|
%
|
|||
STG-Fairway Acquisitions, Inc. (j)
|
|
Professional Services
|
|
L+5.25% (6.25%), 6/30/2022
|
|
13,359
|
|
|
13,199
|
|
|
13,042
|
|
|
0.9
|
%
|
|||
Stratose Intermediate Holdings II, LLC (j)
|
|
Health Care Providers & Services
|
|
L+5.00% (6.00%), 1/26/2022
|
|
9,900
|
|
|
9,816
|
|
|
9,937
|
|
|
0.6
|
%
|
|||
SunGard Availability Services Capital, Inc. (j)
|
|
IT Services
|
|
L+5.00% (6.00%), 3/31/2019
|
|
8,741
|
|
|
8,700
|
|
|
8,443
|
|
|
0.6
|
%
|
|||
Tax Defense Network, LLC (f) (i) (m)
|
|
Diversified Consumer Services
|
|
L+10.50% (11.50%), 8/28/2019
|
|
26,650
|
|
|
26,354
|
|
|
18,388
|
|
|
1.2
|
%
|
|||
Total Outdoor Holdings Corp.
|
|
Media
|
|
L+11.00% (12.00%), 8/28/2019
|
|
12,900
|
|
|
12,762
|
|
|
12,900
|
|
|
0.8
|
%
|
|||
Trojan Battery Company, LLC (j)
|
|
Auto Components
|
|
P+3.75% (7.50%), 6/12/2021
|
|
10,586
|
|
|
10,517
|
|
|
10,507
|
|
|
0.7
|
%
|
|||
Turning Tech LLC (f) (i)
|
|
Software
|
|
L+10.75% (11.59%), 6/30/2020
|
|
24,976
|
|
|
24,668
|
|
|
24,102
|
|
|
1.6
|
%
|
|||
Twenty Eighty, Inc. (j) (m)
|
|
Media
|
|
P+5.00% (8.75%), 9/30/2019
|
|
21,926
|
|
|
20,989
|
|
|
7,975
|
|
|
0.5
|
%
|
|||
United Central Industrial Supply Company, LLC (i) (j)
|
|
Commercial Services & Supplies
|
|
L+7.25% (8.50%), 10/9/2018
|
|
8,640
|
|
|
8,590
|
|
|
6,890
|
|
|
0.5
|
%
|
|||
VCVH Holding Corp. (j)
|
|
Health Care
|
|
L+5.00% (6.00%), 6/1/2023
|
|
12,935
|
|
|
12,816
|
|
|
12,854
|
|
|
0.8
|
%
|
|||
VetCor Professional Practices LLC (i)
|
|
Diversified Consumer Services
|
|
L+6.25% (7.25%), 4/20/2021
|
|
14,808
|
|
|
14,696
|
|
|
14,512
|
|
|
0.9
|
%
|
|||
Xplornet Communications, Inc. (a) (j)
|
|
Diversified Telecommunication Services
|
|
L+6.00% (7.00%), 7/25/2020
|
|
9,975
|
|
|
9,882
|
|
|
10,050
|
|
|
0.7
|
%
|
|||
Sub Total Senior Secured First Lien Debt
|
|
|
|
|
|
|
|
$
|
1,726,833
|
|
|
$
|
1,630,661
|
|
|
106.6
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Second Lien Debt - 17.1% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Anchor Glass Container Corporation
|
|
Containers & Packaging
|
|
L+7.75% (8.75%), 12/7/2024
|
|
$
|
20,000
|
|
|
$
|
19,801
|
|
|
$
|
20,325
|
|
|
1.3
|
%
|
December 31, 2016
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (n) (x)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
Appriss Holdings, Inc. (m)
|
|
IT Services
|
|
L+9.25% (10.25%), 5/21/2021
|
|
$
|
13,985
|
|
|
$
|
13,839
|
|
|
$
|
13,775
|
|
|
0.9
|
%
|
Asurion LLC (j)
|
|
IT Services
|
|
L+7.50% (8.50%), 3/3/2021
|
|
10,000
|
|
|
9,320
|
|
|
10,156
|
|
|
0.7
|
%
|
|||
Boston Market Corporation (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (9.25%), 12/16/2018
|
|
24,351
|
|
|
24,196
|
|
|
24,107
|
|
|
1.6
|
%
|
|||
BrandMuscle Holdings Inc. (m)
|
|
Internet Software & Services
|
|
L+8.50% (9.50%), 6/1/2022
|
|
24,500
|
|
|
24,091
|
|
|
24,500
|
|
|
1.6
|
%
|
|||
Cayan Holdings (m)
|
|
IT Services
|
|
L+8.50% (9.50%), 3/24/2022
|
|
20,000
|
|
|
19,579
|
|
|
19,600
|
|
|
1.3
|
%
|
|||
CDS U.S. Intermediate Holdings, Inc. (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (9.25%), 7/8/2023
|
|
4,800
|
|
|
4,680
|
|
|
4,668
|
|
|
0.3
|
%
|
|||
CIG Financial, LLC (a) (f) (m)
|
|
Consumer Finance
|
|
10.50%, 6/30/2019
|
|
13,000
|
|
|
12,935
|
|
|
12,415
|
|
|
0.8
|
%
|
|||
CREDITCORP
|
|
Consumer Finance
|
|
12.00%, 7/15/2018
|
|
13,250
|
|
|
13,217
|
|
|
10,401
|
|
|
0.7
|
%
|
|||
Epic Health Services, Inc. (m)
|
|
Health Care Providers & Services
|
|
L+9.25% (10.25%), 8/17/2021
|
|
15,933
|
|
|
15,703
|
|
|
15,933
|
|
|
1.0
|
%
|
|||
J. C. Bromac Corporation (dba EagleRider, Inc.) (f) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.75% (9.59%), 2/10/2021
|
|
6,950
|
|
|
6,887
|
|
|
6,776
|
|
|
0.4
|
%
|
|||
Linc Energy Finance USA, Inc. (t)
|
|
Oil, Gas & Consumable Fuels
|
|
12.50%, 10/31/2017
|
|
9,000
|
|
|
8,914
|
|
|
—
|
|
|
—
|
%
|
|||
NCP Finance Limited Partnership (j)
|
|
Consumer Finance
|
|
L+9.75% (11.00%), 10/1/2018
|
|
12,145
|
|
|
12,109
|
|
|
11,386
|
|
|
0.7
|
%
|
|||
Rx30 HoldCo, Inc. (m)
|
|
Health Care Technology
|
|
L+9.00% (10.00%), 6/15/2022
|
|
11,500
|
|
|
11,320
|
|
|
11,500
|
|
|
0.8
|
%
|
|||
Schulman Associates Institutional Review Board, Inc. (m)
|
|
Life Sciences Tools & Services
|
|
L+8.00% (9.00%), 6/3/2021
|
|
17,000
|
|
|
16,768
|
|
|
16,745
|
|
|
1.1
|
%
|
|||
Stratose Intermediate Holdings II, LLC (m)
|
|
Health Care Providers & Services
|
|
L+9.50% (10.50%), 7/26/2022
|
|
30,000
|
|
|
29,593
|
|
|
30,000
|
|
|
2.0
|
%
|
|||
U.S. Auto (m)
|
|
Diversified Consumer Services
|
|
L+11.75% (12.75%), 6/8/2020
|
|
30,000
|
|
|
29,561
|
|
|
29,700
|
|
|
1.9
|
%
|
|||
Sub Total Senior Secured Second Lien Debt
|
|
|
|
|
|
|
|
$
|
272,513
|
|
|
$
|
261,987
|
|
|
17.1
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Debt - 5.3% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Gold, Inc. (m)
|
|
Textiles, Apparel & Luxury Goods
|
|
10.00%, 6/30/2019
|
|
$
|
7,003
|
|
|
$
|
6,924
|
|
|
$
|
5,953
|
|
|
0.4
|
%
|
Park Ave RE Holdings, LLC (d) (l) (o)
|
|
Real Estate Management & Development
|
|
L+8.00% (13.00%), 12/29/2017
|
|
37,192
|
|
|
37,192
|
|
|
37,192
|
|
|
2.4
|
%
|
|||
Steel City Media (l)
|
|
Media
|
|
16.00%, 3/29/2020
|
|
21,418
|
|
|
21,146
|
|
|
20,561
|
|
|
1.4
|
%
|
|||
Xplornet Communications, Inc. (a) (l)
|
|
Diversified Telecommunication Services
|
|
13.00%, 10/25/2020
|
|
14,591
|
|
|
14,591
|
|
|
15,102
|
|
|
1.0
|
%
|
|||
Zimbra, Inc. (t)
|
|
Software
|
|
12.00%, 7/10/2018
|
|
1,203
|
|
|
1,203
|
|
|
1,732
|
|
|
0.1
|
%
|
|||
Sub Total Subordinated Debt
|
|
|
|
|
|
|
|
$
|
81,056
|
|
|
$
|
80,540
|
|
|
5.3
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Collateralized Securities - 16.3% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Collateralized Securities - Debt Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fifth Street Senior Loan Fund I, LLC - 1A Class F (a) (p)
|
|
Diversified Investment Vehicles
|
|
L+7.50% (8.38%), 1/19/2027
|
|
$
|
10,728
|
|
|
$
|
9,100
|
|
|
$
|
8,455
|
|
|
0.5
|
%
|
Collateralized Securities - Equity Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
B&M CLO 2014-1, LTD. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
7.71%, 4/16/2026
|
|
$
|
40,250
|
|
|
$
|
20,331
|
|
|
$
|
16,772
|
|
|
1.1
|
%
|
December 31, 2016
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (n) (x)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
CVP Cascade CLO, LTD. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.04%, 1/16/2026
|
|
$
|
31,000
|
|
|
$
|
10,552
|
|
|
$
|
8,868
|
|
|
0.6
|
%
|
CVP Cascade CLO-2, LTD. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
4.80%, 7/18/2026
|
|
35,250
|
|
|
13,667
|
|
|
11,593
|
|
|
0.8
|
%
|
|||
Fifth Street Senior Loan Fund I, LLC - 2015-1A Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
13.83%, 1/19/2027
|
|
31,575
|
|
|
22,079
|
|
|
20,579
|
|
|
1.3
|
%
|
|||
Figueroa CLO 2014-1, LTD. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
4.65%, 1/15/2027
|
|
35,057
|
|
|
19,941
|
|
|
16,101
|
|
|
1.1
|
%
|
|||
MidOcean Credit CLO II, LLC (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
7.44%, 1/29/2025
|
|
37,600
|
|
|
23,092
|
|
|
22,419
|
|
|
1.5
|
%
|
|||
MidOcean Credit CLO III, LLC (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
11.89%, 7/21/2026
|
|
40,250
|
|
|
23,998
|
|
|
23,341
|
|
|
1.5
|
%
|
|||
MidOcean Credit CLO IV, LLC (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
13.77%, 4/15/2027
|
|
21,500
|
|
|
15,160
|
|
|
15,505
|
|
|
1.0
|
%
|
|||
NewStar Arlington Senior Loan Program LLC Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
23.61%, 7/25/2025
|
|
31,603
|
|
|
23,795
|
|
|
24,491
|
|
|
1.6
|
%
|
|||
Ocean Trails CLO V, LTD. (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
14.78%, 10/13/2026
|
|
40,518
|
|
|
28,222
|
|
|
29,144
|
|
|
1.9
|
%
|
|||
OFSI Fund VI, Ltd. Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
13.59%, 3/20/2025
|
|
38,000
|
|
|
19,012
|
|
|
17,354
|
|
|
1.1
|
%
|
|||
Related Fee Agreements (a) (s)
|
|
Diversified Investment Vehicles
|
|
|
|
—
|
|
|
11,345
|
|
|
10,390
|
|
|
0.7
|
%
|
|||
Silver Spring CLO, Ltd. (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.26%, 10/16/2026
|
|
31,500
|
|
|
18,676
|
|
|
12,007
|
|
|
0.8
|
%
|
|||
WhiteHorse VIII, Ltd. CLO Subordinated Notes (a) (p) (v)
|
|
Diversified Investment Vehicles
|
|
6.99%, 5/1/2026
|
|
36,000
|
|
|
15,806
|
|
|
12,563
|
|
|
0.8
|
%
|
|||
Sub Total Collateralized Securities
|
|
|
|
|
|
|
|
$
|
274,776
|
|
|
$
|
249,582
|
|
|
16.3
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity/Other - 11.2% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basho Technologies, Inc. - Series G Senior Participating Preferred Stock Warrant (e)
|
|
Software
|
|
Expire 3/9/2025
|
|
306,122
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Basho Technologies, Inc. - Series G Senior Preferred Stock (e)
|
|
Software
|
|
|
|
2,040,816
|
|
|
2,000
|
|
|
—
|
|
|
—
|
%
|
|||
Capstone Nutrition - Common Stock (fka Integrity Nutraceuticals, Inc.) (e) (o)
|
|
Food Products
|
|
|
|
6,023
|
|
|
1,630
|
|
|
—
|
|
|
—
|
%
|
|||
Capstone Nutrition - Class B and C Common Stock (fka Integrity Nutraceuticals, Inc.) (e) (o) (u)
|
|
Food Products
|
|
|
|
24,656
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Carlyle GMS Finance, Inc. (a) (f)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
6,587
|
|
|
6,587
|
|
|
6,273
|
|
|
0.4
|
%
|
||
Danish CRJ LTD. (a) (e) (p) (r)
|
|
Aerospace & Defense
|
|
|
|
10,000
|
|
|
1
|
|
|
407
|
|
|
—
|
%
|
|||
Evolution Research Group - Preferred Equity (e)
|
|
Health Care Providers & Services
|
|
8.00%
|
|
200
|
|
|
500
|
|
|
610
|
|
|
—
|
%
|
|||
Greenwave Holdings, Inc. - Series C Preferred Stock Warrant (e)
|
|
Internet Software & Services
|
|
Expire 8/16/2025
|
|
172,414
|
|
|
—
|
|
|
19
|
|
|
—
|
%
|
December 31, 2016
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (n) (x)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
Kahala Ireland OpCo Designated Activity Company - Common Equity (a) (e) (h) (o)
|
|
Aerospace & Defense
|
|
|
|
137
|
|
|
$
|
—
|
|
|
$
|
8,180
|
|
|
0.5
|
%
|
|
Kahala Ireland OpCo Designated Activity Company - Profit Participating Note (a) (e) (h) (o)
|
|
Aerospace & Defense
|
|
|
|
3,250,000
|
|
|
2,900
|
|
|
3,250
|
|
|
0.2
|
%
|
|||
Kahala US OpCo LLC - Class A Preferred Units (e) (k) (o)
|
|
Aerospace & Defense
|
|
13.00%
|
|
4,413,472
|
|
|
4,193
|
|
|
4,000
|
|
|
0.3
|
%
|
|||
New Star Metals Inc. (l)
|
|
Business Services
|
|
Expire 12/22/2036
|
|
133,074
|
|
|
201
|
|
|
201
|
|
|
—
|
%
|
|||
NexSteppe Inc. - Series C Preferred Stock Warrant (e)
|
|
Chemicals
|
|
Expire 3/9/2025
|
|
185,704
|
|
|
500
|
|
|
43
|
|
|
—
|
%
|
|||
NMFC Senior Loan Program I, LLC (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
50,000
|
|
|
50,000
|
|
|
47,057
|
|
|
3.1
|
%
|
||
Orchid Underwriters Agency, LLC - Preferred Shares (e) (u)
|
|
Insurance Broker
|
|
|
|
5,000
|
|
|
500
|
|
|
659
|
|
|
—
|
%
|
|||
Orchid Underwriters Agency, LLC - Common Shares (e) (u)
|
|
Insurance Broker
|
|
|
|
5,000
|
|
|
—
|
|
|
304
|
|
|
—
|
%
|
|||
Park Ave RE Holdings, LLC - Common Shares (e) (o) (w)
|
|
Real Estate Management & Development
|
|
|
|
1,000
|
|
|
—
|
|
|
6,564
|
|
|
0.4
|
%
|
|||
Park Ave RE Holdings, LLC - Preferred Shares (o) (w)
|
|
Real Estate Management & Development
|
|
8.00%
|
|
47,290
|
|
|
23,645
|
|
|
23,645
|
|
|
1.6
|
%
|
|||
PennantPark Credit Opportunities Fund II, LP (a) (f) (g) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
9,943
|
|
|
9,943
|
|
|
9,788
|
|
|
0.7
|
%
|
||
South Grand MM CLO I, LLC (a) (f) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
29,095
|
|
|
29,095
|
|
|
28,382
|
|
|
1.9
|
%
|
||
Squan Holding Corp. - Class A Common Stock (e) (p)
|
|
Diversified Telecommunication Services
|
|
|
|
180,835
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Squan Holding Corp. - Series A Preferred Stock (e) (p)
|
|
Diversified Telecommunication Services
|
|
|
|
8,962
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Tax Defense Network, LLC (e)
|
|
Diversified Consumer Services
|
|
|
|
396
|
|
|
425
|
|
|
—
|
|
|
—
|
%
|
|||
Tennenbaum Waterman Fund, L.P. (a)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
10,000
|
|
|
10,000
|
|
|
10,169
|
|
|
0.7
|
%
|
||
The SAVO Group, Ltd. - Warrants (e)
|
|
Internet Software & Services
|
|
Expire 3/23/2023
|
|
138,000
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
THL Credit Greenway Fund II LLC (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
13,990
|
|
|
13,990
|
|
|
12,850
|
|
|
0.9
|
%
|
||
U.S. Auto - Series A Common Units (e) (u)
|
|
Diversified Consumer Services
|
|
|
|
10,000
|
|
|
10
|
|
|
27
|
|
|
—
|
%
|
|||
U.S. Auto - Series A Preferred Units (e) (u)
|
|
Diversified Consumer Services
|
|
|
|
490
|
|
|
490
|
|
|
572
|
|
|
—
|
%
|
|||
World Business Lenders, LLC (e)
|
|
Consumer Finance
|
|
|
|
922,669
|
|
|
3,750
|
|
|
4,441
|
|
|
0.3
|
%
|
|||
Xplornet Communications, Inc. - Warrants (a) (e)
|
|
Diversified Telecommunication Services
|
|
Expire 10/25/2023
|
|
10,284
|
|
|
—
|
|
|
3,647
|
|
|
0.2
|
%
|
|||
Zimbra, Inc. - Warrants (Third Lien Bridge Note) (e)
|
|
Software
|
|
Expire 7/11/2023
|
|
1,000,000
|
|
|
—
|
|
|
225
|
|
|
—
|
%
|
December 31, 2016
|
|||||||||||||||||||
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (n) (x)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value (c)
|
|
% of Net Assets (b)
|
|||||||
Sub Total Equity/Other
|
|
|
|
|
|
|
|
$
|
160,360
|
|
|
$
|
171,313
|
|
|
11.2
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
TOTAL INVESTMENTS - 156.5% (b)
|
|
|
|
|
|
|
|
$
|
2,515,538
|
|
|
$
|
2,394,083
|
|
|
156.5
|
%
|
(a)
|
All of the Company's investments, except the investments noted by this footnote, are qualifying assets under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not require any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. Qualifying assets represent 77.9% of the Company's total assets. The significant majority of all investments held are deemed to be illiquid.
|
(b)
|
Percentages are based on net assets of $
1,529,734
as of
December 31, 2016
.
|
(c)
|
The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's board of directors as required by the 1940 Act. (See Note 3 to the consolidated financial statements).
|
(d)
|
As of the date of election, the portfolio company elected to pay cash interest, noting the company has the option to elect a portion of the interest to be payment-in-kind (“PIK”).
|
(e)
|
Non-income producing at
December 31, 2016
.
|
Portfolio Company Name
|
|
Investment Type
|
|
Commitment Type
|
|
Original Commitment
|
|
Remaining Commitment
|
||||
Amteck, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
$
|
5,000
|
|
|
$
|
5,000
|
|
BDS Solutions Group, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
3,000
|
|
|
3,000
|
|
||
Carlyle GMS Finance, Inc.
|
|
Equity/Other
|
|
Equity capital commitment
|
|
10,000
|
|
|
3,413
|
|
||
CCW, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
3,000
|
|
|
3,000
|
|
||
CH Hold Corp.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,175
|
|
|
706
|
|
||
CIG Financial, LLC
|
|
Senior Secured Second Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
5,000
|
|
||
Icynene US Acquisition Corp.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
5,000
|
|
||
Icynene US Acquisition Corp.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
5,000
|
|
|
4,000
|
|
||
InMotion Entertainment Group, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,200
|
|
|
1,843
|
|
||
J. C. Bromac Corporation (dba EagleRider, Inc.)
|
|
Senior Secured Second Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
5,000
|
|
||
Motion Recruitment Partners, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,000
|
|
|
2,000
|
|
||
National Technical Systems, Inc.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
5,000
|
|
||
Orchid Underwriters Agency, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
5,600
|
|
|
5,600
|
|
||
PennantPark Credit Opportunities Fund II, LP
|
|
Equity/Other
|
|
Equity capital commitment
|
|
10,800
|
|
|
538
|
|
||
Pure Barre, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
6,579
|
|
|
6,579
|
|
||
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
1,316
|
|
|
1,316
|
|
||
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,500
|
|
|
2,500
|
|
||
RVNB Holdings, Inc. (dba All My Sons Moving & Storage)
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
852
|
|
|
852
|
|
||
South Grand MM CLO I, LLC
|
|
Equity/Other
|
|
Equity capital commitment
|
|
35,000
|
|
|
5,476
|
|
||
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
1,000
|
|
||
Turning Tech LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
6,000
|
|
|
3,000
|
|
||
Total
|
|
|
|
|
|
$
|
126,022
|
|
|
$
|
69,823
|
|
(g)
|
The investment is subject to a three year lock-up restriction on withdrawals in year 4.
|
(h)
|
The Company's investment is held through the consolidated subsidiaries, Kahala Aviation Holdings, LLC and Kahala LuxCo, which own 100% of the equity of the operating company, Kahala Ireland OpCo Designated Activity Company.
|
(i)
|
The Company's investment or a portion thereof is pledged as collateral under the Wells Fargo Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.
|
(j)
|
The Company's investment or a portion thereof is pledged as collateral under the Citi Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.
|
(k)
|
The Company's investment is held through the consolidated subsidiaries, Kahala Aviation Holdings, LLC and Kahala Aviation US, Inc. which own 100% of the equity of the operating company, Kahala US OpCo LLC.
|
Portfolio Company
|
|
Investment Type
|
|
Cash
|
|
PIK
|
|
All-in Rate
|
|
PIK Earned for the year ended December 31, 2016
|
|||||
Basho Technologies, Inc.
|
|
Senior Secured First Lien Debt
|
|
17.00
|
%
|
|
—
|
%
|
|
17.00
|
%
|
|
$
|
283
|
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.)
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
13.50
|
%
|
|
13.50
|
%
|
|
807
|
|
|
CPX Interactive Holdings, LP
|
|
Senior Secured Second Lien Debt
|
|
11.00
|
%
|
|
2.00
|
%
|
|
13.00
|
%
|
|
315
|
|
|
Greenwave Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
10.00
|
%
|
|
3.00
|
%
|
|
13.00
|
%
|
|
510
|
|
|
ILC Dover LP
|
|
Senior Secured First Lien Debt
|
|
8.00
|
%
|
|
2.00
|
%
|
|
10.00
|
%
|
|
132
|
|
|
Kahala Ireland OpCo Designated Activity Company
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
13.00
|
%
|
|
13.00
|
%
|
|
5,827
|
|
|
Kahala US OpCo LLC
|
|
Senior Secured First Lien Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
87
|
|
|
Lightsquared LP
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
9.75
|
%
|
|
9.75
|
%
|
|
—
|
|
|
MMM Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
9.75
|
%
|
|
—
|
%
|
|
9.75
|
%
|
|
—
|
|
|
MSO of Puerto Rico, LLC
|
|
Senior Secured First Lien Debt
|
|
9.75
|
%
|
|
—
|
%
|
|
9.75
|
%
|
|
—
|
|
|
New Star Metals Inc.
|
|
Senior Secured First Lien Debt
|
|
9.00
|
%
|
|
2.00
|
%
|
|
11.00
|
%
|
|
—
|
|
|
NexSteppe Inc.
|
|
Senior Secured First Lien Debt
|
|
10.00
|
%
|
|
5.00
|
%
|
|
15.00
|
%
|
|
509
|
|
|
Park Ave RE Holdings, LLC
|
|
Subordinated Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
—
|
|
|
Steel City Media
|
|
Subordinated Debt
|
|
12.00
|
%
|
|
4.00
|
%
|
|
16.00
|
%
|
|
840
|
|
|
Taqua, LLC
|
|
Senior Secured First Lien Debt
|
|
10.50
|
%
|
|
3.00
|
%
|
|
13.50
|
%
|
|
202
|
|
|
The Tennis Channel Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
6.88
|
%
|
|
2.00
|
%
|
|
8.88
|
%
|
|
85
|
|
|
Visionary Integration Professionals, LLC
|
|
Subordinated Debt
|
|
—
|
%
|
|
15.00
|
%
|
|
15.00
|
%
|
|
1,088
|
|
|
Xplornet Communications, Inc.
|
|
Subordinated Debt
|
|
—
|
%
|
|
13.00
|
%
|
|
13.00
|
%
|
|
1,727
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
$
|
12,412
|
|
(m)
|
The Company's investment or a portion thereof is pledged as collateral under the UBS Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.
|
(n)
|
For equity investments in Collateralized Securities, the effective yield is presented in place of the investment coupon rate for each investment. Refer to footnote (v) for a further description of an equity investment in a Collateralized Security.
|
(o)
|
The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be "non-controlled" when we own 25% or less of the portfolio company's voting securities and "controlled" when we own more than 25% of the portfolio company's voting securities.
|
(p)
|
The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as "non-affiliated" when we own less than 5% of a portfolio company's voting securities and "affiliated" when we own 5% or more of a portfolio company's voting securities.
|
(q)
|
Unless otherwise indicated, all investments in the schedule of investments are non-affiliated, non-controlled investments.
|
(r)
|
The Company's investment is held through the Consolidated Holding Company, Kahala Aviation Holdings, LLC, which owns 49% of the operating company, Danish CRJ LTD.
|
(s)
|
Related Fee Agreements consist of one investment with a fair value of $0.7 million that is classified as a Non-affiliated Investment and six investments with a total fair value of $9.6 million that are classified as Affiliated Investments.
|
(t)
|
The investment is on non-accrual status as of
December 31, 2016
.
|
(u)
|
Investments are held in the taxable wholly-owned, consolidated subsidiary, 54
th
Street Equity Holdings, Inc.
|
(v)
|
The Collateralized Securities - debt investments and equity investments are considered equity positions in the Collateralized Loan Obligation funds. Equity investments are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund’s securities less contractual payments to debt holders and fund expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized.
|
(w)
|
The Company's investment is held through the consolidated subsidiary, Park Ave RE, Inc., which owns 100% of the equity of the operating company, Park Ave RE Holdings, LLC.
|
(x)
|
The majority of the investments bear interest at a rate that may be determined by reference to LIBOR or Prime and which reset daily, monthly, quarterly or semiannually. For each, the Company has provided the spread over LIBOR or Prime and the current interest rate in effect at December 31, 2016. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable.
|
|
At December 31, 2016
|
|||||
|
Investments at
Fair Value
|
|
Percentage of
Total Portfolio
|
|||
Diversified Investment Vehicles
|
$
|
364,101
|
|
|
15.2
|
%
|
Aerospace & Defense
|
186,806
|
|
|
7.8
|
|
|
Diversified Consumer Services
|
175,780
|
|
|
7.3
|
|
|
Health Care Providers & Services
|
160,396
|
|
|
6.7
|
|
|
Hotels, Restaurants & Leisure
|
157,062
|
|
|
6.6
|
|
|
Business Services
|
112,225
|
|
|
4.7
|
|
|
Internet Software & Services
|
110,324
|
|
|
4.6
|
|
|
Media
|
95,975
|
|
|
4.0
|
|
|
Health Care
|
93,526
|
|
|
3.9
|
|
|
Diversified Telecommunication Services
|
89,047
|
|
|
3.7
|
|
|
Commercial Services & Supplies
|
88,465
|
|
|
3.7
|
|
|
Real Estate Management & Development
|
78,474
|
|
|
3.3
|
|
|
IT Services
|
70,013
|
|
|
2.9
|
|
|
Food Products
|
61,866
|
|
|
2.6
|
|
|
Software
|
55,378
|
|
|
2.3
|
|
|
Professional Services
|
49,401
|
|
|
2.1
|
|
|
Machinery
|
41,442
|
|
|
1.7
|
|
|
Consumer Finance
|
38,643
|
|
|
1.6
|
|
|
Auto Components
|
38,073
|
|
|
1.6
|
|
|
Chemicals
|
33,352
|
|
|
1.4
|
|
|
Electronic Equipment, Instruments & Components
|
28,063
|
|
|
1.2
|
|
|
Transportation Infrastructure
|
27,923
|
|
|
1.2
|
|
|
Specialty Retail
|
26,271
|
|
|
1.1
|
|
|
Diversified Financial Services
|
25,599
|
|
|
1.1
|
|
|
Communications Equipment
|
24,226
|
|
|
1.0
|
|
|
Building Products
|
22,286
|
|
|
0.9
|
|
|
Containers & Packaging
|
20,325
|
|
|
0.9
|
|
|
Energy Equipment & Services
|
20,156
|
|
|
0.8
|
|
|
Metals & Mining
|
20,144
|
|
|
0.8
|
|
|
Life Sciences Tools & Services
|
16,745
|
|
|
0.7
|
|
|
Household Durables
|
15,000
|
|
|
0.6
|
|
|
Insurance
|
14,918
|
|
|
0.6
|
|
|
Distributors
|
14,625
|
|
|
0.6
|
|
|
Health Care Technology
|
11,500
|
|
|
0.5
|
|
|
Textiles, Apparel & Luxury Goods
|
5,953
|
|
|
0.3
|
|
|
Oil, Gas & Consumable Fuels
|
—
|
|
|
—
|
|
|
Total
|
$
|
2,394,083
|
|
|
100.0
|
%
|
•
|
Each portfolio company or investment will be valued by the Adviser, with assistance from one or more independent valuation firms engaged by our board of directors or as noted below, with respect to investments in an investment fund;
|
•
|
The independent valuation firm(s) conduct independent appraisals and make an independent assessment of the value of each investment; and
|
•
|
The board of directors determines the fair value of each investment, in good faith, based on the input of the Adviser and independent valuation firm (to the extent applicable).
|
•
|
Level 1—Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.
|
•
|
Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.
|
•
|
Level 3—Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.
|
|
Fair Value Measurements
|
||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Measured at Net Asset Value
(1)
|
|
Total
|
||||||||||
Senior Secured First Lien Debt
|
$
|
—
|
|
|
$
|
173,391
|
|
|
$
|
1,515,021
|
|
|
$
|
—
|
|
|
$
|
1,688,412
|
|
Senior Secured Second Lien Debt
|
—
|
|
|
42,562
|
|
|
242,200
|
|
|
—
|
|
|
284,762
|
|
|||||
Subordinated Debt
|
—
|
|
|
10,375
|
|
|
64,487
|
|
|
—
|
|
|
74,862
|
|
|||||
Collateralized Securities
|
—
|
|
|
—
|
|
|
188,291
|
|
|
—
|
|
|
188,291
|
|
|||||
Equity/Other
|
—
|
|
|
7,292
|
|
|
88,840
|
|
|
109,840
|
|
|
205,972
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
233,620
|
|
|
$
|
2,098,839
|
|
|
$
|
109,840
|
|
|
$
|
2,442,299
|
|
|
Fair Value Measurements
|
||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Measured at Net Asset Value
(1)
|
|
Total
|
||||||||||
Senior Secured First Lien Debt
|
$
|
—
|
|
|
$
|
714,562
|
|
|
$
|
916,099
|
|
|
$
|
—
|
|
|
$
|
1,630,661
|
|
Senior Secured Second Lien Debt
|
—
|
|
|
56,936
|
|
|
205,051
|
|
|
—
|
|
|
261,987
|
|
|||||
Subordinated Debt
|
—
|
|
|
—
|
|
|
80,540
|
|
|
—
|
|
|
80,540
|
|
|||||
Collateralized Securities
|
—
|
|
|
—
|
|
|
249,582
|
|
|
—
|
|
|
249,582
|
|
|||||
Equity/Other
|
—
|
|
|
—
|
|
|
56,794
|
|
|
114,519
|
|
|
171,313
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
771,498
|
|
|
$
|
1,508,066
|
|
|
$
|
114,519
|
|
|
$
|
2,394,083
|
|
|
Senior Secured First Lien Debt
|
|
Senior Secured Second Lien Debt
|
|
Subordinated Debt
|
|
Collateralized Securities
|
|
Equity/Other
|
|
Total
|
||||||||||||
Balance as of December 31, 2016
|
$
|
916,099
|
|
|
$
|
205,051
|
|
|
$
|
80,540
|
|
|
$
|
249,582
|
|
|
$
|
56,794
|
|
|
$
|
1,508,066
|
|
Net change in unrealized appreciation (depreciation) on investments
|
(21,719
|
)
|
|
469
|
|
|
(1,429
|
)
|
|
(10,603
|
)
|
|
6,463
|
|
|
(26,819
|
)
|
||||||
Purchases and other adjustments to cost
|
340,327
|
|
|
45,827
|
|
|
1,854
|
|
|
80
|
|
|
26,113
|
|
|
414,201
|
|
||||||
Sales and redemptions
|
(170,514
|
)
|
|
(46,105
|
)
|
|
(17,463
|
)
|
|
(51,717
|
)
|
|
(534
|
)
|
|
(286,333
|
)
|
||||||
Net realized gains (losses)
|
1,290
|
|
|
579
|
|
|
985
|
|
|
949
|
|
|
4
|
|
|
3,807
|
|
||||||
Transfers in
|
449,538
|
|
|
36,379
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
485,917
|
|
||||||
Transfers out
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance as of June 30, 2017
|
$
|
1,515,021
|
|
|
$
|
242,200
|
|
|
$
|
64,487
|
|
|
$
|
188,291
|
|
|
$
|
88,840
|
|
|
$
|
2,098,839
|
|
Net change in unrealized appreciation (depreciation) for the
period relating to those Level 3
assets that were still held by
the Company at the end of the
period:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net change in unrealized
appreciation (depreciation):
|
$
|
(21,717
|
)
|
|
$
|
876
|
|
|
$
|
(918
|
)
|
|
$
|
(9,667
|
)
|
|
$
|
6,463
|
|
|
$
|
(24,963
|
)
|
|
Senior Secured First Lien Debt
|
|
Senior Secured Second Lien Debt
|
|
Subordinated Debt
|
|
Collateralized Securities
|
|
Equity/Other
|
|
Total
|
||||||||||||
Balance as of December 31, 2015
|
$
|
1,095,040
|
|
|
$
|
340,563
|
|
|
$
|
92,272
|
|
|
$
|
261,784
|
|
|
$
|
115,112
|
|
|
$
|
1,904,771
|
|
Net change in unrealized appreciation (depreciation) on investments
|
(39,045
|
)
|
|
4,506
|
|
|
1,120
|
|
|
48,557
|
|
|
(19,214
|
)
|
|
(4,076
|
)
|
||||||
Purchases and other adjustments to cost
|
255,985
|
|
|
27,416
|
|
|
5,813
|
|
|
162
|
|
|
201
|
|
|
289,577
|
|
||||||
Sales and redemptions
|
(241,206
|
)
|
|
(118,913
|
)
|
|
(7,403
|
)
|
|
(60,921
|
)
|
|
(4,069
|
)
|
|
(432,512
|
)
|
||||||
Net realized gains (losses)
|
(9,461
|
)
|
|
1,538
|
|
|
(11,262
|
)
|
|
—
|
|
|
(6,081
|
)
|
|
(25,266
|
)
|
||||||
Transfers in
|
4,252
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,252
|
|
||||||
Transfers out
|
(149,466
|
)
|
|
(50,059
|
)
|
|
—
|
|
|
—
|
|
|
(29,155
|
)
|
|
(228,680
|
)
|
||||||
Balance as of December 31, 2016
|
$
|
916,099
|
|
|
$
|
205,051
|
|
|
$
|
80,540
|
|
|
$
|
249,582
|
|
|
$
|
56,794
|
|
|
$
|
1,508,066
|
|
Net change in unrealized appreciation (depreciation) for the
period relating to those Level 3 assets that were still held by the Company at the end of the period: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net change in unrealized
appreciation (depreciation): |
$
|
(41,722
|
)
|
|
$
|
1,653
|
|
|
$
|
(603
|
)
|
|
$
|
48,557
|
|
|
$
|
(21,841
|
)
|
|
$
|
(13,956
|
)
|
|
Investments at
Amortized Cost
|
|
Investments at
Fair Value
|
|
Fair Value
Percentage of
Total Portfolio
|
|||||
Senior Secured First Lien Debt
|
$
|
1,777,310
|
|
|
$
|
1,688,412
|
|
|
69.1
|
%
|
Senior Secured Second Lien Debt
|
285,156
|
|
|
284,762
|
|
|
11.7
|
|
||
Subordinated Debt
|
76,432
|
|
|
74,862
|
|
|
3.1
|
|
||
Collateralized Securities
|
224,089
|
|
|
188,291
|
|
|
7.7
|
|
||
Equity/Other
|
184,254
|
|
|
205,972
|
|
|
8.4
|
|
||
Total
|
$
|
2,547,241
|
|
|
$
|
2,442,299
|
|
|
100.0
|
%
|
|
Investments at
Amortized Cost
|
|
Investments at
Fair Value
|
|
Fair Value
Percentage of
Total Portfolio
|
|||||
Senior Secured First Lien Debt
|
$
|
1,726,833
|
|
|
$
|
1,630,661
|
|
|
68.1
|
%
|
Senior Secured Second Lien Debt
|
272,513
|
|
|
261,987
|
|
|
10.9
|
|
||
Subordinated Debt
|
81,056
|
|
|
80,540
|
|
|
3.4
|
|
||
Collateralized Securities
|
274,776
|
|
|
249,582
|
|
|
10.4
|
|
||
Equity/Other
|
160,360
|
|
|
171,313
|
|
|
7.2
|
|
||
Total
|
$
|
2,515,538
|
|
|
$
|
2,394,083
|
|
|
100.0
|
%
|
|
|
|
|
Range
|
|
|
|||||||||||
Asset Category
|
|
Fair Value
|
|
Primary Valuation Technique
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted Average
(a)
|
|||||
Senior Secured First Lien Debt
(b)
|
|
$
|
1,281,593
|
|
|
Yield Analysis
|
|
Market Yield
|
|
5.25
|
%
|
|
35.00
|
%
|
|
10.08
|
%
|
Senior Secured First Lien Debt
(c)
|
|
$
|
11,294
|
|
|
Joint Venture/Merger Strategy
|
|
EBITDA Multiple
|
|
5.25x
|
|
|
5.75x
|
|
|
N/A
|
|
Senior Secured Second Lien Debt
(d)
|
|
$
|
236,918
|
|
|
Yield Analysis
|
|
Market Yield
|
|
9.94
|
%
|
|
15.00
|
%
|
|
11.52
|
%
|
Subordinated Debt
(e)
|
|
$
|
64,019
|
|
|
Yield Analysis
|
|
Market Yield
|
|
13.00
|
%
|
|
17.00
|
%
|
|
14.51
|
%
|
Collateralized Securities
|
|
$
|
188,291
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
12.00
|
%
|
|
27.50
|
%
|
|
17.43
|
%
|
Equity/Other
(f)
|
|
$
|
38,885
|
|
|
Market Multiple Analysis
|
|
EBITDA Multiple
|
|
1.60x
|
|
|
22.40x
|
|
|
11.18x
|
|
(a)
|
Weighted averages are calculated based on fair value of investments.
|
(b)
|
Refer to note (c) below for one senior secured first lien debt investment valued using an alternative technique. The remaining $222.1 million of senior secured first lien debt were valued at their respective acquisition prices as the investments closed near period end.
|
(c)
|
Weighted average not applicable as this asset category contains one investment.
|
(d)
|
The remaining $5.3 million of senior secured second lien debt were valued based on their respective acquisition prices as the investments closed near year end.
|
(e)
|
The remaining $0.5 million of subordinated debt were valued based on a Monte-Carlo simulation.
|
(f)
|
The remaining $49.9 million of equity/other investments consisted of $49.6 million which were valued with consideration of their respective appraisal value, $0.1 million which were valued at their respective acquisition prices as the investment closed in the current period, and $0.2 million which were based on a Monte-Carlo simulation.
|
|
|
|
|
Range
|
|
|
|||||||||||
Asset Category
|
|
Fair Value
|
|
Primary Valuation Technique
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted Average
(a)
|
|||||
Senior Secured First Lien Debt
(b)
|
|
$
|
823,974
|
|
|
Yield Analysis
|
|
Market Yield
|
|
6.00
|
%
|
|
27.00
|
%
|
|
10.88
|
%
|
Senior Secured First Lien Debt
(c)
|
|
$
|
19,708
|
|
|
Joint Venture/Merger Strategy
|
|
EBITDA Multiple
|
|
6.75x
|
|
|
7.50x
|
|
|
N/A
|
|
Senior Secured Second Lien Debt
|
|
$
|
205,051
|
|
|
Yield Analysis
|
|
Market Yield
|
|
10.60
|
%
|
|
13.60
|
%
|
|
11.91
|
%
|
Subordinated Debt
(d)
|
|
$
|
78,808
|
|
|
Yield Analysis
|
|
Market Yield
|
|
12.25
|
%
|
|
17.25
|
%
|
|
14.11
|
%
|
Collateralized Securities
|
|
$
|
249,582
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
7.54
|
%
|
|
45.06
|
%
|
|
19.84
|
%
|
Equity/Other
(e)
|
|
$
|
10,279
|
|
|
Market Multiple Analysis
|
|
EBITDA Multiple
|
|
2.40x
|
|
|
11.20x
|
|
|
7.00x
|
|
(a)
|
Weighted averages are calculated based on fair value of investments.
|
(b)
|
Refer to note (c) below for one senior secured first lien debt investment valued using an alternative technique. The remaining $72.4 million of senior secured first lien debt were valued at their respective acquisition prices as the investments closed near year end.
|
(c)
|
Weighted average not applicable as this asset category contains one investment.
|
(d)
|
The remaining $1.7 million of subordinated debt were valued based on a Monte-Carlo simulation.
|
(e)
|
The remaining $46.5 million of equity/other investments consisted of $46.0 million which were valued with consideration of their respective appraisal value, $0.3 million which were based on a Monte-Carlo simulation, and $0.2 million which were valued at their respective acquisition prices as the investment closed near year end.
|
•
|
No incentive fee on income shall be payable to the Adviser in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the preferred return rate of 1.75% or 7.00% annualized (the “Preferred Return”) on net assets;
|
•
|
100% of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the preferred return but is less than or equal to 2.1875% in any calendar quarter (8.75% annualized) shall be payable to the Adviser. This portion of the Company’s incentive fee on income is referred to as the “catch up” and is intended to provide the Adviser with an incentive fee of 20% on all of the Company’s Pre-Incentive Fee Net Investment Income when the Company’s Pre-Incentive Fee Net Investment Income reaches 2.1875% (8.75% annualized) in any calendar quarter; and
|
•
|
For any quarter in which our Pre-Incentive Fee Net Investment Income exceeds 2.1875% (8.75% annualized), the incentive fee on income shall equal 20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, as the Preferred Return and catch-up will have been achieved.
|
|
Level
|
|
Maturity Date
|
|
Total Aggregate Borrowing Capacity
|
|
Total Principal Outstanding
|
|
Less Deferred Financing Costs
|
|
Amount per Balance Sheet
|
||||||||
Wells Fargo Credit Facility
|
3
|
|
5/18/2022
|
|
$
|
400,000
|
|
|
$
|
327,152
|
|
|
$
|
(7,024
|
)
|
|
$
|
320,128
|
|
Citi Credit Facility
|
3
|
|
6/27/2018
|
|
400,000
|
|
|
316,003
|
|
|
(731
|
)
|
|
315,272
|
|
||||
UBS Credit Facility
|
3
|
|
4/7/2018
|
|
232,500
|
|
|
232,500
|
|
|
(317
|
)
|
|
232,183
|
|
||||
Unsecured Notes
|
3
|
|
9/1/2020
|
|
100,000
|
|
|
98,999
|
|
|
(398
|
)
|
|
98,601
|
|
||||
JPMC PB Account
|
n/a
|
|
n/a
|
|
34,860
|
|
|
34,004
|
|
|
—
|
|
|
34,004
|
|
||||
Totals
|
|
|
|
|
$
|
1,167,360
|
|
|
$
|
1,008,658
|
|
|
$
|
(8,470
|
)
|
|
$
|
1,000,188
|
|
|
Level
|
|
Maturity Date
|
|
Total Aggregate Borrowing Capacity
|
|
Total Principal Outstanding
|
|
Less Deferred Financing Costs
|
|
Amount per Balance Sheet
|
||||||||
Wells Fargo Credit Facility
|
3
|
|
5/29/2020
|
|
$
|
400,000
|
|
|
$
|
298,152
|
|
|
$
|
(2,939
|
)
|
|
$
|
295,213
|
|
Citi Credit Facility
|
3
|
|
6/27/2018
|
|
400,000
|
|
|
286,003
|
|
|
(1,097
|
)
|
|
284,906
|
|
||||
UBS Credit Facility
|
3
|
|
4/7/2018
|
|
232,500
|
|
|
232,500
|
|
|
(517
|
)
|
|
231,983
|
|
||||
Unsecured Notes
|
3
|
|
9/1/2020
|
|
100,000
|
|
|
98,842
|
|
|
(460
|
)
|
|
98,382
|
|
||||
Totals
|
|
|
|
|
$
|
1,132,500
|
|
|
$
|
915,497
|
|
|
$
|
(5,013
|
)
|
|
$
|
910,484
|
|
|
Three months ended June 30, 2017
|
|
Six months ended June 30, 2017
|
||||||||||||||||||||||||||||
|
Interest Rate
|
|
Non-Usage Rate
|
|
Interest Expense
|
|
Deferred Financing Costs
(3)
|
|
Other Fees
(4)
|
|
Interest Rate
|
|
Non-Usage Rate
|
|
Interest Expense
|
|
Deferred Financing Costs
(3)
|
|
Other Fees
(4)
|
||||||||||||
Wells Fargo Credit Facility
|
(1)
|
|
(2)
|
|
$
|
2,860
|
|
|
$
|
285
|
|
|
$
|
265
|
|
|
(1)
|
|
(2)
|
|
$
|
5,228
|
|
|
$
|
498
|
|
|
$
|
503
|
|
Citi Credit Facility
|
L+1.70%
|
|
0.50%
|
|
2,264
|
|
|
184
|
|
|
124
|
|
|
L+1.70%
|
|
0.50%
|
|
4,295
|
|
|
367
|
|
|
264
|
|
||||||
UBS Credit Facility
|
L+4.05%
|
|
n/a
|
|
3,054
|
|
|
103
|
|
|
32
|
|
|
L+4.05%
|
|
n/a
|
|
5,985
|
|
|
205
|
|
|
55
|
|
||||||
Unsecured Notes
|
6.00%
|
|
n/a
|
|
1,579
|
|
|
31
|
|
|
—
|
|
|
6.00%
|
|
n/a
|
|
3,156
|
|
|
62
|
|
|
7
|
|
||||||
JPMC PB Account
|
L+0.90%
|
|
n/a
|
|
29
|
|
|
—
|
|
|
—
|
|
|
L+0.90%
|
|
n/a
|
|
35
|
|
|
—
|
|
|
—
|
|
||||||
Totals
|
|
|
|
|
$
|
9,786
|
|
|
$
|
603
|
|
|
$
|
421
|
|
|
|
|
|
|
$
|
18,699
|
|
|
$
|
1,132
|
|
|
$
|
829
|
|
|
Three months ended June 30, 2016
|
|
Six months ended June 30, 2016
|
||||||||||||||||||||||||||||
|
Interest Rate
|
|
Non-Usage Rate
|
|
Interest Expense
|
|
Deferred Financing Costs
(5)
|
|
Other Fees
(6)
|
|
Interest Rate
|
|
Non-Usage Rate
|
|
Interest Expense
|
|
Deferred Financing Costs
(5)
|
|
Other Fees
(6)
|
||||||||||||
Wells Fargo Credit Facility
|
(1)
|
|
(2)
|
|
$
|
1,999
|
|
|
$
|
215
|
|
|
$
|
316
|
|
|
(1)
|
|
(2)
|
|
$
|
3,871
|
|
|
$
|
647
|
|
|
$
|
586
|
|
Deutsche Bank Credit Facility
|
L+4.25%
|
|
(3) (4)
|
|
351
|
|
|
330
|
|
|
50
|
|
|
L+4.25%
|
|
(3)
|
|
679
|
|
|
412
|
|
|
294
|
|
||||||
Citi Credit Facility
|
L+2.00%
|
|
0.50%
|
|
1,637
|
|
|
184
|
|
|
159
|
|
|
L+2.00%
|
|
0.50%
|
|
3,214
|
|
|
516
|
|
|
322
|
|
||||||
UBS Credit Facility
|
L+4.05%
|
|
n/a
|
|
2,479
|
|
|
79
|
|
|
14
|
|
|
L+4.05%
|
|
n/a
|
|
4,871
|
|
|
95
|
|
|
14
|
|
||||||
Unsecured Notes
|
6.00%
|
|
n/a
|
|
1,595
|
|
|
32
|
|
|
n/a
|
|
|
6.00%
|
|
n/a
|
|
3,191
|
|
|
63
|
|
|
n/a
|
|
||||||
Totals
|
|
|
|
|
$
|
8,061
|
|
|
$
|
840
|
|
|
$
|
539
|
|
|
|
|
|
|
$
|
15,826
|
|
|
$
|
1,733
|
|
|
$
|
1,216
|
|
|
Level
|
|
Carrying Amount at June 30, 2017
|
|
Fair Value at June 30, 2017
|
||||
Wells Fargo Credit Facility
|
3
|
|
$
|
327,152
|
|
|
$
|
327,152
|
|
Citi Credit Facility
|
3
|
|
316,003
|
|
|
316,003
|
|
||
UBS Credit Facility
|
3
|
|
232,500
|
|
|
232,500
|
|
||
Unsecured Notes
|
3
|
|
98,999
|
|
|
99,124
|
|
||
JPMC PB Account
|
n/a
|
|
34,004
|
|
|
34,004
|
|
||
|
|
|
$
|
1,008,658
|
|
|
$
|
1,008,783
|
|
|
Level
|
|
Carrying Amount at December 31, 2016
|
|
Fair Value at December 31, 2016
|
||||
Wells Fargo Credit Facility
|
3
|
|
$
|
298,152
|
|
|
$
|
298,152
|
|
Citi Credit Facility
|
3
|
|
286,003
|
|
|
286,003
|
|
||
UBS Credit Facility
|
3
|
|
232,500
|
|
|
232,500
|
|
||
Unsecured Notes
|
3
|
|
98,842
|
|
|
98,125
|
|
||
|
|
|
$
|
915,497
|
|
|
$
|
914,780
|
|
|
|
Shares
|
|
Value
|
|||
Shares Sold
|
|
—
|
|
|
$
|
—
|
|
Shares Issued through DRIP
|
|
3,475,881
|
|
|
29,834
|
|
|
Share Repurchases
|
|
(103,191
|
)
|
|
(868
|
)
|
|
|
|
3,372,690
|
|
|
$
|
28,966
|
|
|
|
Shares
|
|
Value
|
|||
Shares Sold
|
|
1,165,501
|
|
|
$
|
10,000
|
|
Shares Issued through DRIP
|
|
6,591,972
|
|
|
58,424
|
|
|
Share Repurchases
|
|
(9,778,710
|
)
|
|
(85,844
|
)
|
|
|
|
(2,021,237
|
)
|
|
$
|
(17,420
|
)
|
Quarterly Offer Date
|
|
Repurchase Date
|
|
Shares Tendered
|
|
Shares Repurchased
|
|
Repurchase Price Per Share
|
|
Aggregate Consideration for Repurchased Shares (in thousands)
|
||||||
September 12, 2012
|
|
October 8, 2012
|
|
—
|
|
|
—
|
|
|
$
|
9.71
|
|
|
$
|
—
|
|
December 13, 2012
|
|
January 15, 2013
|
|
46,975
|
|
|
10,732
|
|
|
$
|
9.90
|
|
|
$
|
106.22
|
|
March 27, 2013
|
|
April 25, 2013
|
|
29,625
|
|
|
29,625
|
|
|
$
|
10.18
|
|
|
$
|
301.58
|
|
July 15, 2013
|
|
August 13, 2013
|
|
30,365
|
|
|
30,365
|
|
|
$
|
10.18
|
|
|
$
|
308.97
|
|
October 22, 2013
|
|
November 21, 2013
|
|
55,255
|
|
|
55,255
|
|
|
$
|
10.36
|
|
|
$
|
572.44
|
|
February 4, 2014
|
|
March 6, 2014
|
|
68,969
|
|
|
68,969
|
|
|
$
|
10.36
|
|
|
$
|
714.52
|
|
June 6, 2014
|
|
July 11, 2014
|
|
117,425
|
|
|
117,425
|
|
|
$
|
10.36
|
|
|
$
|
1,216.38
|
|
August 7, 2014
|
|
September 10, 2014
|
|
111,854
|
|
|
111,854
|
|
|
$
|
10.36
|
|
|
$
|
1,158.80
|
|
December 19, 2014
|
|
January 23, 2015
|
|
313,101
|
|
|
313,101
|
|
|
$
|
10.36
|
|
|
$
|
3,243.73
|
|
March 16, 2015
|
|
April 15, 2015
|
|
162,688
|
|
|
162,688
|
|
|
$
|
10.36
|
|
|
$
|
1,685.45
|
|
June 26, 2015
|
|
July 31, 2015
|
|
533,527
|
|
|
533,527
|
|
|
$
|
9.72
|
|
|
$
|
5,185.88
|
|
September 18, 2015
|
|
October 20, 2015
|
|
728,874
|
|
|
728,874
|
|
|
$
|
9.53
|
|
|
$
|
6,946.17
|
|
December 23, 2015
|
|
January 25, 2016
|
|
7,375,871
|
|
|
3,053,869
|
|
|
$
|
9.22
|
|
|
$
|
28,156.67
|
|
July 26, 2016
|
|
December 31, 2016
|
|
17,004,354
|
|
|
6,715,864
|
|
|
$
|
8.58
|
|
|
$
|
57,622.10
|
|
June 8, 2017
|
|
July 6, 2017
|
|
11,747,753
|
|
|
3,433,482
|
|
|
$
|
8.52
|
|
|
$
|
28,576.26
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Basic and diluted
|
|
|
|
|
|
|
|
||||||||
Net increase in net assets from operations
|
$
|
14,714
|
|
|
$
|
34,947
|
|
|
$
|
34,081
|
|
|
$
|
55,232
|
|
Weighted average common shares outstanding
|
179,880,734
|
|
|
178,671,810
|
|
|
179,052,951
|
|
|
178,874,087
|
|
||||
Net increase in net assets resulting from operations per share
|
$
|
0.08
|
|
|
$
|
0.20
|
|
|
$
|
0.19
|
|
|
$
|
0.31
|
|
Announcement Date
|
|
New Public Offering Price
|
|
Effective Date
|
|
Daily Distribution Amount per share
|
|
Annualized Distribution Rate
|
|||
November 14, 2011
|
|
$
|
10.26
|
|
|
November 16, 2011
|
|
0.002221920
|
|
7.90
|
%
|
May 1, 2012
|
|
$
|
10.44
|
|
|
June 1, 2012
|
|
0.002215850
|
|
7.75
|
%
|
August 14, 2012
|
|
$
|
10.50
|
|
|
September 4, 2012
|
|
0.002246575
|
|
7.81
|
%
|
September 24, 2012
|
|
$
|
10.60
|
|
|
October 16, 2012
|
|
0.002246575
|
|
7.74
|
%
|
October 15, 2012
|
|
$
|
10.70
|
|
|
November 1, 2012
|
|
0.002273973
|
|
7.76
|
%
|
February 5, 2013
|
|
$
|
10.80
|
|
|
February 18, 2013
|
|
0.002293151
|
|
7.75
|
%
|
February 25, 2013
|
|
$
|
10.90
|
|
|
March 1, 2013
|
|
0.002314384
|
|
7.75
|
%
|
April 3, 2013
|
|
$
|
11.00
|
|
|
April 16, 2013
|
|
0.002335616
|
|
7.75
|
%
|
August 15, 2013
|
|
$
|
11.10
|
|
|
August 16, 2013
|
|
0.002356849
|
|
7.75
|
%
|
October 29, 2013
|
|
$
|
11.20
|
|
|
November 1, 2013
|
|
0.002378082
|
|
7.75
|
%
|
May 28, 2015
|
|
$
|
11.15
|
|
|
April 16, 2015
|
|
0.002378082
|
|
7.78
|
%
|
Record Date
|
|
Payment Date
|
|
Per share
|
|
Distributions Paid in Cash
|
|
Distributions Paid Through the DRIP
|
|
Total Distributions Paid
|
||||||||
2016:
|
|
|
|
|
|
|
|
|
|
|
||||||||
January 31, 2016
|
|
February 3, 2016
|
|
$
|
0.07
|
|
|
$
|
8,922
|
|
|
$
|
4,298
|
|
|
$
|
13,220
|
|
February 28, 2016
|
|
March 1, 2016
|
|
0.07
|
|
|
7,014
|
|
|
5,333
|
|
|
12,347
|
|
||||
March 31, 2016
|
|
April 1, 2016
|
|
0.07
|
|
|
7,363
|
|
|
5,718
|
|
|
13,081
|
|
||||
April 30, 2016
|
|
May 2, 2016
|
|
0.07
|
|
|
12,708
|
|
|
(2
|
)
|
|
12,706
|
|
||||
May 31, 2016
|
|
June 2, 2016
|
|
0.07
|
|
|
7,582
|
|
|
5,539
|
|
|
13,121
|
|
||||
June 30, 2016
|
|
July 1, 2016
|
|
0.07
|
|
|
7,438
|
|
|
5,304
|
|
|
12,742
|
|
||||
July 31, 2016
|
|
August 1, 2016
|
|
0.07
|
|
|
7,789
|
|
|
5,421
|
|
|
13,210
|
|
||||
August 31, 2016
|
|
September 1, 2016
|
|
0.07
|
|
|
7,908
|
|
|
5,351
|
|
|
13,259
|
|
||||
September 30, 2016
|
|
October 3, 2016
|
|
0.07
|
|
|
7,745
|
|
|
5,127
|
|
|
12,872
|
|
||||
October 31, 2016
|
|
November 1, 2016
|
|
0.07
|
|
|
8,067
|
|
|
5,273
|
|
|
13,340
|
|
||||
November 30, 2016
|
|
December 1, 2016
|
|
0.07
|
|
|
7,947
|
|
|
5,073
|
|
|
13,020
|
|
||||
December 31, 2016
|
|
January 3, 2017
|
|
0.07
|
|
|
8,311
|
|
|
5,205
|
|
|
13,516
|
|
||||
|
|
|
|
|
|
$
|
98,794
|
|
|
$
|
57,640
|
|
|
$
|
156,434
|
|
||
2017:
|
|
|
|
|
|
|
|
|
|
|
||||||||
January 31, 2017
|
|
February 3, 2017
|
|
$
|
0.07
|
|
|
$
|
7,983
|
|
|
$
|
5,081
|
|
|
$
|
13,064
|
|
February 28, 2017
|
|
March 1, 2017
|
|
0.07
|
|
|
7,250
|
|
|
4,612
|
|
|
11,862
|
|
||||
March 31, 2017
|
|
April 3, 2017
|
|
0.07
|
|
|
8,135
|
|
|
5,060
|
|
|
13,195
|
|
||||
April 30, 2017
|
|
May 1, 2017
|
|
0.07
|
|
|
7,942
|
|
|
4,881
|
|
|
12,823
|
|
||||
May 31, 2017
|
|
June 1, 2017
|
|
0.07
|
|
|
8,270
|
|
|
4,995
|
|
|
13,265
|
|
||||
June 30, 2017
|
|
July 3, 2017
|
|
0.07
|
|
|
8,064
|
|
|
4,813
|
|
|
12,877
|
|
||||
July 31, 2017
|
|
August 1, 2017
|
|
0.06
|
|
|
6,308
|
|
|
3,695
|
|
|
10,003
|
|
||||
|
|
|
|
|
|
$
|
53,952
|
|
|
$
|
33,137
|
|
|
$
|
87,089
|
|
||
|
|
|
|
|
|
$
|
152,746
|
|
|
$
|
90,777
|
|
|
$
|
243,523
|
|
|
For the Six Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||
|
2017
|
|
2016
|
||||
Per share data:
|
|
|
|
||||
Net asset value, beginning of period
|
$
|
8.62
|
|
|
$
|
8.97
|
|
|
|
|
|
||||
Results of operations
(1)
Net investment income
|
0.30
|
|
|
0.34
|
|
||
Net realized and unrealized gain (loss) on investments, net of deferred taxes
|
(0.11
|
)
|
|
(0.03
|
)
|
||
Net increase in net assets resulting from operations
|
0.19
|
|
|
0.31
|
|
||
|
|
|
|
||||
Stockholder distributions
(2)
Distributions
|
(0.43
|
)
|
|
(0.43
|
)
|
||
Net decrease in net assets resulting from stockholder distributions
|
(0.43
|
)
|
|
(0.43
|
)
|
||
|
|
|
|
||||
Capital share transactions
Issuance of common stock
(3)
|
—
|
|
|
(0.01
|
)
|
||
Repurchases of common stock
|
—
|
|
|
—
|
|
||
Net increase (decrease) in net assets resulting from capital share transactions
|
—
|
|
|
(0.01
|
)
|
||
Net asset value, end of period
|
$
|
8.38
|
|
|
$
|
8.84
|
|
Shares outstanding at end of period
|
180,493,481
|
|
|
179,089,123
|
|
||
Total return
(4)
|
2.20
|
%
|
|
3.51
|
%
|
||
Ratio/Supplemental data:
|
|
|
|
||||
Net assets, end of period (in thousands)
|
$
|
1,516,005
|
|
|
$
|
1,586,505
|
|
Ratio of net investment income to average net assets
(6)(7)
|
7.83
|
%
|
|
7.70
|
%
|
||
Ratio of total expenses to average net assets
(6)(7)
|
6.95
|
%
|
|
6.70
|
%
|
||
Portfolio turnover rate
(5)
|
19.92
|
%
|
|
14.06
|
%
|
(1)
|
Per share data was derived by using the weighted average shares outstanding during the period.
|
(2)
|
The per share data for distributions reflects the actual amount of distributions declared per share during the period.
|
(3)
|
The issuance of common stock on a per share basis reflects the incremental net asset value changes as a result of the issuance of shares of common stock mainly from the Company's DRIP.
|
(4)
|
Total return is calculated assuming a purchase of shares of common stock at the current net asset value on the first day and a sale at the current net asset value on the last day of the periods reported. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the DRIP.
|
(5)
|
Portfolio turnover rate is calculated using the lesser of year-to-date purchases or sales over the average of the invested assets at fair value. Not annualized.
|
(6)
|
Ratios are annualized, except for incentive fees.
|
(7)
|
There were no offering costs incurred during the period.
|
Portfolio Company
(1)
|
|
Type of Asset
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2016
|
|
Gross additions
*
|
|
Gross reductions
**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss)
(6)
|
|
Fair Value at June 30, 2017
|
||||||||||||||
Control Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Senior Secured First Lien Debt
|
|
$
|
—
|
|
|
$
|
19,708
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8,414
|
)
|
|
$
|
11,294
|
|
Kahala Ireland OpCo Designated Activity Company
(3)
|
|
Senior Secured First Lien Debt
|
|
9,770
|
|
|
149,409
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149,531
|
|
|||||||
Kahala Ireland OpCo Designated Activity Company - Common Equity
(3)
|
|
Equity/Other
|
|
—
|
|
|
8,180
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,646
|
|
|
10,826
|
|
|||||||
Kahala Ireland OpCo Designated Activity Company - Profit Participating Note
(3)
|
|
Equity/Other
|
|
—
|
|
|
3,250
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
62
|
|
|
3,250
|
|
|||||||
Kahala US OpCo LLC
(3)
|
|
Senior Secured First Lien Debt
|
|
120
|
|
|
2,690
|
|
|
|
|
(2,690
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Kahala US OpCo LLC - Class A Preferred Units
(3)
|
|
Equity/Other
|
|
—
|
|
|
4,000
|
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
444
|
|
|
4,413
|
|
|||||||
Park Ave RE Holdings, LLC
(2)
|
|
Subordinated Debt
|
|
2,431
|
|
|
37,192
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,192
|
|
||||||||
Park Ave RE Holdings, LLC
(2)
- Common Shares
|
|
Equity/Other
|
|
—
|
|
|
6,564
|
|
|
—
|
|
|
|
|
—
|
|
|
672
|
|
|
7,236
|
|
||||||||
Park Ave RE Holdings, LLC
(2)
- Preferred Shares
|
|
Equity/Other
|
|
946
|
|
|
23,645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,645
|
|
|||||||
Total Control Investments
|
|
|
|
$
|
13,267
|
|
|
$
|
254,638
|
|
|
$
|
122
|
|
|
$
|
(2,783
|
)
|
|
$
|
—
|
|
|
$
|
(4,590
|
)
|
|
$
|
247,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Answers Corporation
|
|
Senior Secured First Lien Debt
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
2,958
|
|
|
$
|
(8
|
)
|
|
$
|
—
|
|
|
$
|
41
|
|
|
2,991
|
|
|
Answers Corporation
|
|
Senior Secured First Lien Debt
|
|
(1
|
)
|
|
—
|
|
|
17,064
|
|
|
(15,365
|
)
|
|
(18,223
|
)
|
|
16,524
|
|
|
—
|
|
|||||||
Answers Corporation
|
|
Senior Secured First Lien Debt
|
|
1
|
|
|
—
|
|
|
2,954
|
|
|
(2,954
|
)
|
|
|
|
—
|
|
|
—
|
|
||||||||
Answers Corporation
|
|
Senior Secured Second Lien Debt
|
|
125
|
|
|
—
|
|
|
4,038
|
|
|
(12
|
)
|
|
2
|
|
|
530
|
|
|
4,558
|
|
|||||||
Answers Corporation
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
11,362
|
|
|
—
|
|
|
—
|
|
|
2,511
|
|
|
13,873
|
|
|||||||
B&M CLO 2014-1, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
240
|
|
|
16,772
|
|
|
—
|
|
|
(2,843
|
)
|
|
—
|
|
|
564
|
|
|
14,493
|
|
|||||||
CVP Cascade CLO, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
3
|
|
|
8,868
|
|
|
—
|
|
|
(1,189
|
)
|
|
—
|
|
|
(1,522
|
)
|
|
6,157
|
|
|||||||
CVP Cascade CLO-2, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
191
|
|
|
11,593
|
|
|
—
|
|
|
(1,078
|
)
|
|
—
|
|
|
(1,470
|
)
|
|
9,045
|
|
|||||||
Danish CRJ LTD.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
20
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
7
|
|
|
20
|
|
|||||||
Danish CRJ LTD.
|
|
Equity/Other
|
|
—
|
|
|
407
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(153
|
)
|
|
254
|
|
|||||||
Fifth Street Senior Loan Fund LLC 2015-1A Class F
|
|
Collateralized Securities
|
|
540
|
|
|
8,455
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
8,612
|
|
|||||||
Fifth Street Senior Loan Fund I, LLC - 2015-1A Subordinated Notes
|
|
Collateralized Securities
|
|
1,293
|
|
|
20,579
|
|
|
—
|
|
|
(967
|
)
|
|
—
|
|
|
(2,759
|
)
|
|
16,853
|
|
|||||||
Figueroa CLO 2014-1, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
(103
|
)
|
|
16,101
|
|
|
—
|
|
|
(2,109
|
)
|
|
—
|
|
|
(2,385
|
)
|
|
11,607
|
|
|||||||
MidOcean Credit CLO II, LLC Income Notes
|
|
Collateralized Securities
|
|
1,022
|
|
|
22,419
|
|
|
—
|
|
|
(1,272
|
)
|
|
—
|
|
|
(1,523
|
)
|
|
19,624
|
|
Portfolio Company
(1)
|
|
Type of Asset
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2016
|
|
Gross additions
*
|
|
Gross reductions
**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss)
(6)
|
|
Fair Value at June 30, 2017
|
||||||||||||||
MidOcean Credit CLO III, LLC Subordinated Notes
|
|
Collateralized Securities
|
|
732
|
|
|
23,341
|
|
|
—
|
|
|
(1,852
|
)
|
|
—
|
|
|
(1,312
|
)
|
|
20,177
|
|
|||||||
MidOcean Credit CLO IV, LLC Income Notes
|
|
Collateralized Securities
|
|
608
|
|
|
15,505
|
|
|
—
|
|
|
(845
|
)
|
|
—
|
|
|
(1,933
|
)
|
|
12,727
|
|
|||||||
NMFC Senior Loan Program I, LLC
|
|
Equity/Other
|
|
3,599
|
|
|
47,057
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,312
|
|
|
50,369
|
|
|||||||
NewStar Arlington Senior Loan Program LLC Subordinated Notes
|
|
Collateralized Securities
|
|
2,529
|
|
|
24,491
|
|
|
—
|
|
|
(970
|
)
|
|
—
|
|
|
2,620
|
|
|
26,141
|
|
|||||||
Ocean Trails CLO V, LTD.
|
|
Collateralized Securities
|
|
49
|
|
|
29,144
|
|
|
—
|
|
|
(29,128
|
)
|
|
906
|
|
|
(922
|
)
|
|
—
|
|
|||||||
OFSI Fund VI, Ltd. Subordinated Notes
|
|
Collateralized Securities
|
|
1,487
|
|
|
17,354
|
|
|
—
|
|
|
(2,395
|
)
|
|
—
|
|
|
630
|
|
|
15,589
|
|
|||||||
PennantPark Credit Opportunities Fund II, LP
|
|
Equity/Other
|
|
350
|
|
|
9,788
|
|
|
—
|
|
|
(2,691
|
)
|
|
10
|
|
|
118
|
|
|
7,225
|
|
|||||||
Related Fee Agreements
(5)
|
|
Collateralized Securities
|
|
488
|
|
|
9,647
|
|
|
—
|
|
|
(2,515
|
)
|
|
42
|
|
|
(833
|
)
|
|
6,341
|
|
|||||||
South Grand MM CLO I, LLC
|
|
Equity/Other
|
|
1,144
|
|
|
28,382
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109
|
|
|
28,491
|
|
|||||||
Silver Spring CLO, Ltd. Subordinated Notes
|
|
Collateralized Securities
|
|
94
|
|
|
12,007
|
|
|
—
|
|
|
(2,381
|
)
|
|
—
|
|
|
1,777
|
|
|
11,403
|
|
|||||||
Squan Holding Corp.
|
|
Senior Secured First Lien Debt
|
|
799
|
|
|
6,895
|
|
|
533
|
|
|
(139
|
)
|
|
42
|
|
|
(523
|
)
|
|
6,808
|
|
|||||||
Twentyeighty, Inc. - First Lien Debt (TLA 3/20)
|
|
Senior Secured First Lien Debt
|
|
163
|
|
|
—
|
|
|
2,285
|
|
|
—
|
|
|
—
|
|
|
418
|
|
|
2,703
|
|
|||||||
Twentyeighty, Inc. - First Lien Debt (TLB 3/20)
|
|
Senior Secured First Lien Debt
|
|
401
|
|
|
—
|
|
|
4,041
|
|
|
—
|
|
|
—
|
|
|
(93
|
)
|
|
3,948
|
|
|||||||
Twentyeighty, Inc. - First Lien Debt (TLC 3/20)
|
|
Senior Secured First Lien Debt
|
|
380
|
|
|
—
|
|
|
3,673
|
|
|
—
|
|
|
—
|
|
|
(644
|
)
|
|
3,029
|
|
|||||||
Twentyeighty, Inc. - Class A Common Equity (e)
|
|
Equity/Other
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
THL Credit Greenway Fund II LLC
|
|
Equity/Other
|
|
584
|
|
|
12,850
|
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
377
|
|
|
13,043
|
|
|||||||
WhiteHorse VIII, Ltd. CLO Subordinated Notes
|
|
Collateralized Securities
|
|
178
|
|
|
12,563
|
|
|
—
|
|
|
(2,049
|
)
|
|
—
|
|
|
(1,529
|
)
|
|
8,985
|
|
|||||||
Total Affiliate Investments
|
|
|
|
$
|
16,941
|
|
|
$
|
354,238
|
|
|
$
|
48,988
|
|
|
$
|
(72,953
|
)
|
|
$
|
(17,221
|
)
|
|
$
|
12,014
|
|
|
$
|
325,066
|
|
Total Control & Affiliate Investments
|
|
|
|
$
|
30,208
|
|
|
$
|
608,876
|
|
|
$
|
49,110
|
|
|
$
|
(75,736
|
)
|
|
$
|
(17,221
|
)
|
|
$
|
7,424
|
|
|
$
|
572,453
|
|
(1)
|
The principal amount and ownership detail are shown in the consolidated schedules of investments.
|
(2)
|
This investment was not deemed significant under SEC Rule 4-08(g) as of
June 30, 2017
.
|
(3)
|
This investment was not deemed significant under SEC Rule 4-08(g) as of
June 30, 2017
.
|
(4)
|
This investment was not deemed significant under SEC Rule 4-08(g) as of
June 30, 2017
.
|
(5)
|
Not all Related Fee Agreements shown on the consolidated schedules of investments are Affiliated Investments.
|
(6)
|
Gross of deferred taxes.
|
Portfolio Company
(1)
|
|
Type of Asset
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2015
|
|
Gross additions
*
|
|
Gross reductions
**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss)
(6)
|
|
Fair Value at December 31, 2016
|
||||||||||||||
Control Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Senior Secured First Lien Debt
|
|
$
|
713
|
|
|
$
|
29,731
|
|
|
$
|
8,933
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(18,956
|
)
|
|
$
|
19,708
|
|
Capstone Nutrition Common Stock (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Capstone Nutrition Class B and C Common Stock (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Kahala Ireland OpCo Designated Activity Company
(3)
|
|
Senior Secured First Lien Debt
|
|
21,354
|
|
|
170,281
|
|
|
5,828
|
|
|
(26,700
|
)
|
|
—
|
|
|
—
|
|
|
149,409
|
|
|||||||
Kahala Ireland OpCo Designated Activity Company - Common Equity
(3)
|
|
Equity/Other
|
|
—
|
|
|
29,428
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,248
|
)
|
|
8,180
|
|
|||||||
Kahala Ireland OpCo Designated Activity Company - Profit Participating Note
(3)
|
|
Equity/Other
|
|
—
|
|
|
3,250
|
|
|
—
|
|
|
(166
|
)
|
|
—
|
|
|
166
|
|
|
3,250
|
|
|||||||
Kahala US OpCo LLC
|
|
Senior Secured First Lien Debt
|
|
354
|
|
|
2,604
|
|
|
86
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,690
|
|
|||||||
Kahala US OpCo LLC - Class A Preferred Units
|
|
Equity/Other
|
|
1
|
|
|
4,136
|
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
114
|
|
|
4,000
|
|
|||||||
Park Ave RE Holdings, LLC
(2)
|
|
Subordinated Debt
|
|
4,750
|
|
|
35,192
|
|
|
2,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,192
|
|
|||||||
Park Ave RE Holdings, LLC
(2)
- Common Shares
|
|
Equity/Other
|
|
—
|
|
|
8,115
|
|
|
—
|
|
|
(587
|
)
|
|
—
|
|
|
(964
|
)
|
|
6,564
|
|
|||||||
Park Ave RE Holdings, LLC
(2)
- Preferred Shares
|
|
Equity/Other
|
|
2,010
|
|
|
23,645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,645
|
|
|||||||
Total Control Investments
|
|
|
|
$
|
29,182
|
|
|
$
|
306,382
|
|
|
$
|
16,847
|
|
|
$
|
(27,703
|
)
|
|
$
|
—
|
|
|
$
|
(40,888
|
)
|
|
$
|
254,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
B&M CLO 2014-1, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
$
|
1,938
|
|
|
$
|
19,169
|
|
|
$
|
—
|
|
|
$
|
(5,485
|
)
|
|
$
|
—
|
|
|
$
|
3,088
|
|
|
$
|
16,772
|
|
CVP Cascade CLO, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
981
|
|
|
11,114
|
|
|
—
|
|
|
(4,642
|
)
|
|
—
|
|
|
2,396
|
|
|
8,868
|
|
|||||||
CVP Cascade CLO-2, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
860
|
|
|
12,216
|
|
|
—
|
|
|
(5,349
|
)
|
|
—
|
|
|
4,726
|
|
|
11,593
|
|
|||||||
Danish CRJ LTD.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
20
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
13
|
|
|
20
|
|
|||||||
Danish CRJ LTD.
|
|
Equity/Other
|
|
—
|
|
|
1,034
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(627
|
)
|
|
407
|
|
|||||||
Fifth Street Senior Loan Fund LLC 2015-1A Class F
|
|
Collateralized Securities
|
|
1,054
|
|
|
8,523
|
|
|
162
|
|
|
—
|
|
|
—
|
|
|
(230
|
)
|
|
8,455
|
|
|||||||
Fifth Street Senior Loan Fund I, LLC - 2015-1A Subordinated Notes
|
|
Collateralized Securities
|
|
2,919
|
|
|
23,566
|
|
|
—
|
|
|
(4,660
|
)
|
|
—
|
|
|
1,673
|
|
|
20,579
|
|
|||||||
Figueroa CLO 2014-1, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
1,199
|
|
|
16,112
|
|
|
—
|
|
|
(4,518
|
)
|
|
—
|
|
|
4,507
|
|
|
16,101
|
|
|||||||
MidOcean Credit CLO II, LLC
|
|
Collateralized Securities
|
|
2,463
|
|
|
23,603
|
|
|
—
|
|
|
(4,627
|
)
|
|
—
|
|
|
3,443
|
|
|
22,419
|
|
|||||||
MidOcean Credit CLO III, LLC
|
|
Collateralized Securities
|
|
3,516
|
|
|
23,748
|
|
|
—
|
|
|
(5,133
|
)
|
|
—
|
|
|
4,726
|
|
|
23,341
|
|
|||||||
MidOcean Credit CLO IV, LLC
|
|
Collateralized Securities
|
|
2,456
|
|
|
14,212
|
|
|
—
|
|
|
(2,488
|
)
|
|
—
|
|
|
3,781
|
|
|
15,505
|
|
|||||||
NMFC Senior Loan Program I, LLC
|
|
Equity/Other
|
|
7,466
|
|
|
45,994
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,063
|
|
|
47,057
|
|
|||||||
NewStar Arlington Senior Loan Program LLC Subordinated Notes
|
|
Collateralized Securities
|
|
5,109
|
|
|
24,461
|
|
|
—
|
|
|
(3,405
|
)
|
|
—
|
|
|
3,435
|
|
|
24,491
|
|
|||||||
Ocean Trails CLO V, LTD.
|
|
Collateralized Securities
|
|
4,158
|
|
|
25,957
|
|
|
—
|
|
|
(3,266
|
)
|
|
—
|
|
|
6,453
|
|
|
29,144
|
|
|||||||
OFSI Fund VI, Ltd. Subordinated Notes
|
|
Collateralized Securities
|
|
2,577
|
|
|
20,205
|
|
|
—
|
|
|
(5,497
|
)
|
|
—
|
|
|
2,646
|
|
|
17,354
|
|
Portfolio Company
(1)
|
|
Type of Asset
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2015
|
|
Gross additions
*
|
|
Gross reductions
**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss)
(6)
|
|
Fair Value at December 31, 2016
|
||||||||||||||
PennantPark Credit Opportunities Fund II, LP
|
|
Equity/Other
|
|
650
|
|
|
9,082
|
|
|
2,691
|
|
|
(1,615
|
)
|
|
180
|
|
|
(550
|
)
|
|
9,788
|
|
|||||||
Related Fee Agreements
(5)
|
|
Collateralized Securities
|
|
1,434
|
|
|
11,679
|
|
|
—
|
|
|
(2,182
|
)
|
|
—
|
|
|
150
|
|
|
9,647
|
|
|||||||
South Grand MM CLO I, LLC
|
|
Equity/Other
|
|
2,234
|
|
|
29,155
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(773
|
)
|
|
28,382
|
|
|||||||
Silver Spring CLO, Ltd.
|
|
Collateralized Securities
|
|
(229
|
)
|
|
12,269
|
|
|
—
|
|
|
(3,609
|
)
|
|
—
|
|
|
3,347
|
|
|
12,007
|
|
|||||||
Squan Holding Corp.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
—
|
|
|
20,421
|
|
|
(3,022
|
)
|
|
(11,017
|
)
|
|
513
|
|
|
6,895
|
|
|||||||
Squan Holding Corp.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
—
|
|
|
1,035
|
|
|
(1,045
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|||||||
Squan Holding Corp. - Class A Common Stock
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
12
|
|
|
—
|
|
|||||||
Squan Holding Corp. - Series A Preferred Stock
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,139
|
)
|
|
1,139
|
|
|
—
|
|
|||||||
THL Credit Greenway Fund II LLC
|
|
Equity/Other
|
|
1,135
|
|
|
16,910
|
|
|
—
|
|
|
(2,912
|
)
|
|
—
|
|
|
(1,148
|
)
|
|
12,850
|
|
|||||||
WhiteHorse VIII, Ltd. CLO Subordinated Notes
|
|
Collateralized Securities
|
|
1,659
|
|
|
13,955
|
|
|
—
|
|
|
(5,781
|
)
|
|
—
|
|
|
4,389
|
|
|
12,563
|
|
|||||||
Total Affiliate Investments
|
|
|
|
$
|
43,579
|
|
|
$
|
362,984
|
|
|
$
|
24,309
|
|
|
$
|
(69,249
|
)
|
|
$
|
(11,988
|
)
|
|
$
|
48,182
|
|
|
$
|
354,238
|
|
Total Control & Affiliate Investments
|
|
|
|
$
|
72,761
|
|
|
$
|
669,366
|
|
|
$
|
41,156
|
|
|
$
|
(96,952
|
)
|
|
$
|
(11,988
|
)
|
|
$
|
7,294
|
|
|
$
|
608,876
|
|
(1)
|
The principal amount and ownership detail are shown in the consolidated schedules of investments.
|
(2)
|
This investment was not deemed significant under SEC Rule 4-08(g) as of December 31, 2016. However, financial information is provided for comparative purposes. As of December 31, 2016, Park Ave RE Holdings LLC had total assets and liabilities of $136.3 million and $110.2 million, respectively. Total revenue and net income for the year ended December 31, 2016 were approximately $13.4 million and $1.9 million, respectively.
|
(3)
|
This investment was not deemed significant under SEC Rule 4-08(g) as of December 31, 2016. However, financial information is provided for comparative purposes. As of December 31, 2016, Kahala Ireland OpCo Designated Activity Company had total assets and liabilities of $463.1 million and $463.8 million, respectively. Total revenue and net income for the year ended December 31, 2016 were approximately $93.4 million and $2.2 million, respectively.
|
(4)
|
This investment is deemed significant under SEC Rule 4-08(g) as of December 31, 2016. As of December 31, 2016, Capstone Nutrition had total assets and liabilities of $86.0 million and $101.5 million, respectively. Total revenue and net (loss) for the year ended December 31, 2016 were approximately $129.3 million and $(51.6) million, respectively.
|
(5)
|
Not all Related Fee Agreements shown on the consolidated schedules of investments are Affiliated Investments.
|
(6)
|
Gross of deferred taxes.
|
•
|
our future operating results;
|
•
|
our business prospects and the prospects of our portfolio companies;
|
•
|
the impact of the investments that we expect to make;
|
•
|
the ability of our portfolio companies to achieve their objectives;
|
•
|
our contractual arrangements and relationships with third parties;
|
•
|
our expected financings and investments;
|
•
|
the adequacy of our cash resources and working capital;
|
•
|
the timing of cash flows, if any, from the operations of our portfolio companies;
|
•
|
our repurchase of shares;
|
•
|
actual and potential conflicts of interest with our Adviser and its affiliates;
|
•
|
the dependence of our future success on the general economy and its effect on the industries in which we invest;
|
•
|
the ability to qualify and maintain our qualifications as a regulated investment company (“RIC”) and a business development company (“BDC”);
|
•
|
the timing, form and amount of any distributions;
|
•
|
the impact of fluctuations in interest rates on our business;
|
•
|
the valuation of any investments in portfolio companies, particularly those having no liquid trading market;
|
•
|
the impact of changes to generally accepted accounting principles, and the impact to BDCA; and
|
•
|
the impact of changes to tax legislation and, generally, our tax position.
|
•
|
changes in the economy;
|
•
|
risks associated with possible disruption in our operations or the economy generally due to terrorism or natural disasters; and
|
•
|
future changes in laws or regulations and conditions in our operating areas.
|
(Dollars in millions, except per share amounts)
|
|
|||
At June 30, 2017:
|
|
|||
|
Investment Portfolio:
|
$
|
2,442.3
|
|
|
Net Assets attributable to Business Development Corporation of America:
|
1,512.9
|
|
|
|
Debt (net of deferred financing costs):
|
1,000.2
|
|
|
|
Net Asset Value per share:
|
8.38
|
|
|
|
|
|
||
Portfolio Activity for the Six Months Ended June 30, 2017:
|
|
|||
|
Cost of investments purchased during period, including PIK:
|
544.3
|
|
|
|
Sales, repayments and other exits during the period:
|
481.7
|
|
|
|
Number of portfolio companies at end of period:
|
146
|
|
|
|
|
|
||
Operating results for the Six Months Ended June 30, 2017:
|
|
|||
|
Net investment income per share:
|
0.30
|
|
|
|
Distributions declared per share:
|
0.43
|
|
|
|
Net increase in net assets resulting from operations per share:
|
0.19
|
|
|
|
Net investment income:
|
53.5
|
|
|
|
Net realized and unrealized loss on investments:
|
(19.4
|
)
|
|
|
Net increase in net assets resulting from operations:
|
34.1
|
|
|
June 30, 2017
|
||||
|
Percentage of
Total Portfolio
|
|
Weighted Average Current Yield for Total Portfolio
(1)
|
||
Senior Secured First Lien Debt
|
69.1
|
%
|
|
8.6
|
%
|
Senior Secured Second Lien Debt
|
11.7
|
|
|
10.2
|
|
Subordinated Debt
|
3.1
|
|
|
13.6
|
|
Collateralized Securities
(2)
|
7.7
|
|
|
8.5
|
|
Equity/Other
|
8.4
|
|
|
N/A
|
|
Total
|
100.0
|
%
|
|
8.9
|
%
|
|
December 31, 2016
|
||||
|
Percentage of
Total Portfolio
|
|
Weighted Average Current Yield for Total Portfolio
(1)
|
||
Senior Secured First Lien Debt
|
68.1
|
%
|
|
9.1
|
%
|
Senior Secured Second Lien Debt
|
10.9
|
|
|
10.7
|
|
Subordinated Debt
|
3.4
|
|
|
13.5
|
|
Collateralized Securities
(2)
|
10.4
|
|
|
11.5
|
|
Equity/Other
|
7.2
|
|
|
N/A
|
|
Total
|
100.0
|
%
|
|
9.7
|
%
|
Loan Rating
|
|
Summary Description
|
1
|
|
Debt investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since the time of investment are favorable.
|
|
|
|
2
|
|
Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. All investments are initially rated a “2”.
|
|
|
|
3
|
|
Performing debt investment requiring closer monitoring. Trends and risk factors show some deterioration.
|
|
|
|
4
|
|
Underperforming debt investment. Some loss of interest or dividend expected, but still expecting a positive return on investment. Trends and risk factors are negative.
|
|
|
|
5
|
|
Underperforming debt investment with expected loss of interest and some principal.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Total investment income
|
$
|
56,261
|
|
|
$
|
57,573
|
|
|
$
|
112,932
|
|
|
$
|
114,491
|
|
Total expenses
|
28,932
|
|
|
29,910
|
|
|
58,196
|
|
|
53,290
|
|
||||
Income tax expense, including excise tax
|
635
|
|
|
—
|
|
|
1,270
|
|
|
—
|
|
||||
Net investment loss attributable to non-controlling interests
|
4
|
|
|
4
|
|
|
6
|
|
|
11
|
|
||||
Net investment income
|
$
|
26,690
|
|
|
$
|
27,659
|
|
|
$
|
53,460
|
|
|
$
|
61,190
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Management fees
|
$
|
9,691
|
|
|
$
|
9,593
|
|
|
$
|
19,229
|
|
|
$
|
19,006
|
|
Incentive fee on income
|
4,948
|
|
|
6,878
|
|
|
11,314
|
|
|
6,878
|
|
||||
Interest and debt fees
|
10,810
|
|
|
9,440
|
|
|
20,660
|
|
|
18,775
|
|
||||
Professional fees
|
1,344
|
|
|
1,460
|
|
|
2,824
|
|
|
2,780
|
|
||||
Other general and administrative
|
1,720
|
|
|
2,133
|
|
|
3,346
|
|
|
5,014
|
|
||||
Administrative services
|
203
|
|
|
203
|
|
|
406
|
|
|
453
|
|
||||
Insurance
|
2
|
|
|
55
|
|
|
8
|
|
|
110
|
|
||||
Directors' fees
|
214
|
|
|
148
|
|
|
409
|
|
|
274
|
|
||||
Total operating expenses
|
$
|
28,932
|
|
|
$
|
29,910
|
|
|
$
|
58,196
|
|
|
$
|
53,290
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net realized gain (loss) from investments
|
|
|
|
|
|
|
|
||||||||
Control investments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Affiliate investments
|
(18,192
|
)
|
|
—
|
|
|
(17,221
|
)
|
|
180
|
|
||||
Non-affiliate investments
|
(6,020
|
)
|
|
1,207
|
|
|
(17,762
|
)
|
|
2,224
|
|
||||
Total net realized gain (loss) from investments
|
(24,212
|
)
|
|
1,207
|
|
|
(34,983
|
)
|
|
2,404
|
|
||||
Net change in unrealized appreciation (depreciation) on investments, net of deferred taxes
|
|
|
|
|
|
|
|
||||||||
Control investments
|
755
|
|
|
(8,498
|
)
|
|
(5,196
|
)
|
|
(1,995
|
)
|
||||
Affiliate investments
|
12,852
|
|
|
24,066
|
|
|
12,014
|
|
|
15,878
|
|
||||
Non-affiliate investments
|
(1,275
|
)
|
|
(10,171
|
)
|
|
9,090
|
|
|
(22,929
|
)
|
||||
Total net change in unrealized appreciation (depreciation) on investments, net of deferred taxes
|
12,332
|
|
|
5,397
|
|
|
15,908
|
|
|
(9,046
|
)
|
||||
Net change in unrealized appreciation (depreciation) attributable to non-controlling interests
|
(96
|
)
|
|
684
|
|
|
(304
|
)
|
|
684
|
|
||||
Net realized and unrealized gain (loss) on investments
|
$
|
(11,976
|
)
|
|
$
|
7,288
|
|
|
$
|
(19,379
|
)
|
|
$
|
(5,958
|
)
|
•
|
the effect of such repurchases on our qualification as a RIC (including the consequences of any necessary asset sales);
|
•
|
the liquidity of our assets (including fees and costs associated with disposing of assets);
|
•
|
our investment plans and working capital requirements;
|
•
|
the relative economies of scale with respect to our size;
|
•
|
our history in repurchasing shares or portions thereof; and
|
•
|
the condition of the securities markets.
|
|
For the Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Distributions declared
|
$
|
77,086
|
|
|
$
|
77,217
|
|
Distributions paid
|
$
|
77,725
|
|
|
$
|
77,689
|
|
Portion of distributions paid in cash
|
$
|
47,891
|
|
|
$
|
50,813
|
|
Portion of distributions paid in DRIP shares
|
$
|
29,834
|
|
|
$
|
26,876
|
|
|
For the Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Monthly distributions
|
$
|
77,086
|
|
|
$
|
77,217
|
|
Total distributions
|
$
|
77,086
|
|
|
$
|
77,217
|
|
|
|
|
Payment Due by Period
|
||||||||||||||||
|
Total
|
|
Less than 1 year
|
|
1 - 3 years
|
|
3- 5 years
|
|
More than 5 years
|
||||||||||
Wells Fargo Credit Facility
(1)
|
$
|
327,152
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
327,152
|
|
|
$
|
—
|
|
Citi Credit Facility
(2)
|
316,003
|
|
|
316,003
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
UBS Credit Facility
(3)
|
232,500
|
|
|
232,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Unsecured Notes
(4)
|
98,999
|
|
|
—
|
|
|
—
|
|
|
98,999
|
|
|
—
|
|
|||||
JPMC PB Account
(5)
|
34,004
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,004
|
|
|||||
Total contractual obligations
|
$
|
1,008,658
|
|
|
$
|
548,503
|
|
|
$
|
—
|
|
|
$
|
426,151
|
|
|
$
|
34,004
|
|
(1)
|
As of
June 30, 2017
, we had $72.8 million of unused borrowing capacity under the Wells Fargo Credit Facility, subject to borrowing base limits.
|
(2)
|
As of
June 30, 2017
, we had $84.0 million of unused borrowing capacity under the Citi Credit Facility, subject to borrowing base limits.
|
(3)
|
As of
June 30, 2017
, we had no unused borrowing capacity under the UBS Credit Facility, subject to borrowing base limits.
|
(4)
|
As of
June 30, 2017
, we had no unused borrowing capacity under the Unsecured Notes.
|
(5)
|
As of
June 30, 2017
, we had $0.9 million of unused borrowing capacity under the JPMC PB Account.
|
•
|
Each portfolio company or investment will be valued by the Adviser, potentially with assistance from one or more independent valuation firms engaged by our board of directors;
|
•
|
The independent valuation firm(s), if involved, will conduct independent appraisals and make an independent assessment of the value of each investment; and
|
•
|
The board of directors determines the fair value of each investment, in good faith, based on the input of the Adviser, independent valuation firm (to the extent applicable) and the audit committee of the board of directors.
|
Change in Interest Rates
|
|
Estimated Percentage Change in Interest Income net of Interest Expense
|
|
(-) 25 Basis Points
|
|
1.39
|
%
|
Base Interest Rate
|
|
—
|
%
|
(+) 100 Basis Points
|
|
6.05
|
%
|
(+) 200 Basis Points
|
|
11.99
|
%
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Richard J. Byrne
Richard J. Byrne
|
|
Chief Executive Officer, President and Chairman of the Board of Directors
(Principal Executive Officer)
|
|
August 10, 2017
|
/s/ Corinne D. Pankovcin
Corinne D. Pankovcin
|
|
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|
|
August 10, 2017
|
|
|
|
|
|
BUSINESS DEVELOPMENT CORPORATION OF AMERICA
|
|
|
|
|
By:
|
/s/ Richard Byrne
|
|
Richard Byrne
Chief Executive Officer
|
|
||
|
|
|
Attest
|
/s/ Corinne Pankovcin
|
|
|
Corinne Pankovcin
Chief Financial Officer
|
|
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
June 30, 2017
of Business Development Corporation of America;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
August 10, 2017
|
/s/ Richard J. Byrne
|
|
|
Richard J. Byrne
|
|
|
Chief Executive Officer, President, and
Chairman of the Board of Directors
(Principal Executive Officer) |
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
June 30, 2017
of Business Development Corporation of America;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
August 10, 2017
|
/s/ Corinne D. Pankovcin
|
|
|
Corinne D. Pankovcin
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|
/s/
Richard J. Byrne
|
Richard J. Byrne
Chief Executive Officer, President, and Chairman of the Board of Directors
(Principal Executive Officer)
|
|
/s/ Corinne D. Pankovcin
|
Corinne D. Pankovcin
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|