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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Maryland
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27-2614444
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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9 West 57th Street, 49th Floor, Suite 4920
New York, New York
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10019
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(Address of Principal Executive Office)
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(Zip Code)
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Large accelerated filer
o
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Accelerated filer
o
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Non-accelerated filer
x
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Smaller reporting company
o
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Emerging growth company
o
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Page
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PART I - FINANCIAL INFORMATION
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PART II - OTHER INFORMATION
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March 31,
|
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December 31,
|
||||
|
|
2018
|
|
2017
|
||||
|
ASSETS
|
(Unaudited)
|
|
|
||||
|
Investments, at fair value:
|
|
|
|
||||
|
Control Investments, at fair value (amortized cost of $356,539 and $374,888, respectively)
|
$
|
328,163
|
|
|
$
|
350,279
|
|
|
Affiliate Investments, at fair value (amortized cost of $248,859 and $296,884, respectively)
|
229,345
|
|
|
236,801
|
|
||
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Non-affiliate Investments, at fair value (amortized cost of $2,086,102 and $1,926,856, respectively)
|
2,069,344
|
|
|
1,916,443
|
|
||
|
Investments, at fair value (amortized cost of $2,691,500 and $2,598,628, respectively)
|
2,626,852
|
|
|
2,503,523
|
|
||
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Cash and cash equivalents
|
74,504
|
|
|
99,822
|
|
||
|
Interest and dividends receivable
|
21,398
|
|
|
21,542
|
|
||
|
Receivable for unsettled trades
|
4,130
|
|
|
21,409
|
|
||
|
Prepaid expenses and other assets
|
3,891
|
|
|
6,218
|
|
||
|
Total assets
|
$
|
2,730,775
|
|
|
$
|
2,652,514
|
|
|
|
|
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|
||||
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LIABILITIES
|
|
|
|
|
|
||
|
Debt (net of deferred financing costs of $10,130 and $10,926, respectively)
|
$
|
1,164,050
|
|
|
$
|
1,030,223
|
|
|
Stockholder distributions payable
|
9,843
|
|
|
9,923
|
|
||
|
Management fees payable
|
9,955
|
|
|
9,932
|
|
||
|
Incentive fee on income payable
|
4,611
|
|
|
4,558
|
|
||
|
Accounts payable and accrued expenses
|
12,828
|
|
|
11,137
|
|
||
|
Payable for unsettled trades
|
41,984
|
|
|
80,547
|
|
||
|
Interest and debt fees payable
|
11,980
|
|
|
11,611
|
|
||
|
Payable for common stock repurchases
|
386
|
|
|
—
|
|
||
|
Directors' fees payable
|
74
|
|
|
67
|
|
||
|
Total liabilities
|
$
|
1,255,711
|
|
|
$
|
1,157,998
|
|
|
Commitments and contingencies (Note 6)
|
|
|
|
||||
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|
||||
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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, 178,245,519 and 179,733,998 shares issued and outstanding, respectively
|
178
|
|
|
180
|
|
||
|
Additional paid in capital
|
1,740,413
|
|
|
1,752,793
|
|
||
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Accumulated under distributed net investment income
|
30,896
|
|
|
33,469
|
|
||
|
Accumulated over distributed net realized gains
|
(231,757
|
)
|
|
(197,348
|
)
|
||
|
Net unrealized depreciation, net of deferred taxes
|
(67,168
|
)
|
|
(97,399
|
)
|
||
|
Total net assets attributable to Business Development Corporation of America
|
1,472,562
|
|
|
1,491,695
|
|
||
|
Net assets attributable to non-controlling interest
|
2,502
|
|
|
2,821
|
|
||
|
Total net assets
|
1,475,064
|
|
|
1,494,516
|
|
||
|
|
|
|
|
||||
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Total liabilities and net assets
|
$
|
2,730,775
|
|
|
$
|
2,652,514
|
|
|
|
|
|
|
||||
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Net asset value per share attributable to Business Development Corporation of America
|
$
|
8.26
|
|
|
$
|
8.30
|
|
|
|
|
For the Three Months Ended March 31,
|
||||||
|
|
|
2018
|
|
2017
|
||||
|
Investment income:
|
|
|
|
|
||||
|
From control investments
|
|
|
|
|
||||
|
Interest income
|
|
$
|
5,809
|
|
|
$
|
6,154
|
|
|
Dividend income
|
|
3,083
|
|
|
473
|
|
||
|
Total investment income from control investments
|
|
8,892
|
|
|
6,627
|
|
||
|
From affiliate investments
|
|
|
|
|
||||
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Interest income
|
|
5,219
|
|
|
6,309
|
|
||
|
Dividend income
|
|
1,352
|
|
|
2,992
|
|
||
|
Fee and other income
|
|
2
|
|
|
—
|
|
||
|
Total investment income from affiliate investments
|
|
6,573
|
|
|
9,301
|
|
||
|
From non-affiliate investments
|
|
|
|
|
||||
|
Interest income
|
|
41,353
|
|
|
38,895
|
|
||
|
Dividend income
|
|
113
|
|
|
380
|
|
||
|
Fee and other income
|
|
1,445
|
|
|
1,399
|
|
||
|
Total investment income from non-affiliate investments
|
|
42,911
|
|
|
40,674
|
|
||
|
Interest from cash and cash equivalents
|
|
128
|
|
|
70
|
|
||
|
Total invesment income
|
|
58,504
|
|
|
56,672
|
|
||
|
|
|
|
|
|
||||
|
Operating expenses:
|
|
|
|
|
|
|
||
|
Management fees
|
|
9,955
|
|
|
9,538
|
|
||
|
Incentive fee on income
|
|
4,611
|
|
|
6,367
|
|
||
|
Interest and debt fees
|
|
13,450
|
|
|
9,850
|
|
||
|
Professional fees
|
|
1,132
|
|
|
1,480
|
|
||
|
Other general and administrative
|
|
2,464
|
|
|
1,625
|
|
||
|
Administrative services
|
|
199
|
|
|
203
|
|
||
|
Insurance
|
|
1
|
|
|
6
|
|
||
|
Directors' fees
|
|
273
|
|
|
195
|
|
||
|
Total expenses
|
|
32,085
|
|
|
29,264
|
|
||
|
|
|
|
|
|
||||
|
Income tax expense, including excise tax
|
|
270
|
|
|
635
|
|
||
|
|
|
|
|
|
||||
|
Net investment gain (loss) attributable to non-controlling interests
|
|
(5
|
)
|
|
3
|
|
||
|
|
|
|
|
|
||||
|
Net investment income
|
|
26,154
|
|
|
26,770
|
|
||
|
|
|
|
|
|
||||
|
Realized and unrealized gain (loss):
|
|
|
|
|
||||
|
Net realized gain (loss):
|
|
|
|
|
||||
|
Control investments
|
|
394
|
|
|
—
|
|
||
|
Affiliate investments
|
|
(41,028
|
)
|
|
970
|
|
||
|
Non-affiliate investments
|
|
6,199
|
|
|
(11,741
|
)
|
||
|
Net realized gain on foreign currency transactions
|
|
26
|
|
|
—
|
|
||
|
Total net realized loss
|
|
(34,409
|
)
|
|
(10,771
|
)
|
||
|
Net change in unrealized appreciation (depreciation) on investments, net of deferred taxes
|
|
|
|
|
||||
|
Control investments
|
|
(4,309
|
)
|
|
(5,950
|
)
|
||
|
Affiliate investments
|
|
40,570
|
|
|
745
|
|
||
|
Non-affiliate investments
|
|
(6,345
|
)
|
|
8,781
|
|
||
|
|
|
For the Three Months Ended March 31,
|
||||||
|
|
|
2018
|
|
2017
|
||||
|
Total net change in unrealized appreciation on investments, net of deferred taxes
|
|
29,916
|
|
|
3,576
|
|
||
|
Net change in unrealized appreciation (depreciation) attributable to non-controlling interests
|
|
315
|
|
|
(208
|
)
|
||
|
|
|
|
|
|
||||
|
Net realized and unrealized loss
|
|
(4,178
|
)
|
|
(7,403
|
)
|
||
|
|
|
|
|
|
||||
|
Net increase in net assets resulting from operations
|
|
$
|
21,976
|
|
|
$
|
19,367
|
|
|
|
|
|
|
|
||||
|
Per share information - basic and diluted
|
|
|
|
|
||||
|
Net investment income
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
Net increase in net assets resulting from operations
|
|
$
|
0.12
|
|
|
$
|
0.11
|
|
|
Weighted average shares outstanding
|
|
179,247,608
|
|
|
178,215,971
|
|
||
|
|
For the Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Operations:
|
|
|
|
||||
|
Net investment income
|
$
|
26,154
|
|
|
$
|
26,770
|
|
|
Net realized loss from investments
|
(34,435
|
)
|
|
(10,771
|
)
|
||
|
Net realized gain on foreign currency transactions
|
26
|
|
|
—
|
|
||
|
Net change in unrealized appreciation on investments, net of deferred taxes
|
29,916
|
|
|
3,576
|
|
||
|
Net change in unrealized appreciation (depreciation) attributable to non-controlling interests
|
315
|
|
|
(208
|
)
|
||
|
Net increase in net assets resulting from operations
|
21,976
|
|
|
19,367
|
|
||
|
Stockholder distributions:
|
|
|
|
|
|
||
|
Distributions
|
(28,727
|
)
|
|
(38,176
|
)
|
||
|
Net decrease in net assets from stockholder distributions
|
(28,727
|
)
|
|
(38,176
|
)
|
||
|
Capital share transactions:
|
|
|
|
|
|
||
|
Reinvestment of stockholder distributions
|
10,167
|
|
|
14,898
|
|
||
|
Repurchases of common stock
|
(22,549
|
)
|
|
(898
|
)
|
||
|
Net (decrease) increase in net assets from capital share transactions
|
(12,382
|
)
|
|
14,000
|
|
||
|
Total decrease in net assets, before non-controlling interest
|
(19,133
|
)
|
|
(4,809
|
)
|
||
|
(Decrease) increase in non-controlling interest
|
(319
|
)
|
|
211
|
|
||
|
Total decrease in net assets
|
(19,452
|
)
|
|
(4,598
|
)
|
||
|
Net assets at beginning of period
|
1,494,516
|
|
|
1,529,734
|
|
||
|
Net assets at end of period
|
$
|
1,475,064
|
|
|
$
|
1,525,136
|
|
|
|
|
|
|
||||
|
Net asset value per common share attributable to Business Development Corporation of America
|
$
|
8.26
|
|
|
$
|
8.52
|
|
|
Common shares outstanding at end of period
|
178,245,519
|
|
|
178,750,498
|
|
||
|
|
|
|
|
||||
|
Accumulated under distributed net investment income
|
$
|
30,896
|
|
|
$
|
37,538
|
|
|
Accumulated over distributed net realized gains
|
$
|
(231,757
|
)
|
|
$
|
(139,932
|
)
|
|
|
For the Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Operating activities:
|
|
|
|
||||
|
Net increase in net assets resulting from operations
|
$
|
21,976
|
|
|
$
|
19,367
|
|
|
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
|
|
|
|
|
|||
|
Payment-in-kind interest income
|
(1,410
|
)
|
|
(1,597
|
)
|
||
|
Net accretion of discount on investments
|
(2,147
|
)
|
|
(2,163
|
)
|
||
|
Amortization of deferred financing costs
|
796
|
|
|
527
|
|
||
|
Amortization of discount on unsecured notes
|
119
|
|
|
78
|
|
||
|
Sales and repayments of investments
|
160,643
|
|
|
202,845
|
|
||
|
Purchases of investments
|
(284,392
|
)
|
|
(171,177
|
)
|
||
|
Net realized loss from investments
|
34,435
|
|
|
10,771
|
|
||
|
Net realized gain on foreign currency transactions
|
(26
|
)
|
|
—
|
|
||
|
Net unrealized appreciation on investments, gross of deferred taxes
|
(30,458
|
)
|
|
(3,821
|
)
|
||
|
(Increase) decrease in operating assets:
|
|
|
|
|
|||
|
Interest and dividends receivable
|
144
|
|
|
5,114
|
|
||
|
Receivable for unsettled trades
|
17,279
|
|
|
(27,658
|
)
|
||
|
Prepaid expenses and other assets
|
2,326
|
|
|
(1,447
|
)
|
||
|
Increase (decrease) in operating liabilities:
|
|
|
|
|
|||
|
Management fees payable
|
23
|
|
|
(33
|
)
|
||
|
Incentive fee on income payable
|
53
|
|
|
3,230
|
|
||
|
Accounts payable and accrued expenses
|
1,691
|
|
|
1,670
|
|
||
|
Payable for unsettled trades
|
(38,563
|
)
|
|
(47,339
|
)
|
||
|
Interest and debt fees payable
|
369
|
|
|
(1,234
|
)
|
||
|
Directors' fees payable
|
7
|
|
|
(42
|
)
|
||
|
Net cash used in operating activities
|
(117,135
|
)
|
|
(12,909
|
)
|
||
|
|
|
|
|
||||
|
Financing activities:
|
|
|
|
|
|
||
|
Repurchases of common stock
|
(22,162
|
)
|
|
(57,647
|
)
|
||
|
Proceeds from debt
|
132,912
|
|
|
31,874
|
|
||
|
Payments of financing costs
|
—
|
|
|
(4
|
)
|
||
|
Stockholder distributions
|
(18,640
|
)
|
|
(23,544
|
)
|
||
|
(Decrease) increase in non-controlling interest
|
(319
|
)
|
|
211
|
|
||
|
Net cash provided by (used in) financing activities
|
91,791
|
|
|
(49,110
|
)
|
||
|
|
|
|
|
||||
|
Net decrease in cash and cash equivalents
|
(25,344
|
)
|
|
(62,019
|
)
|
||
|
Effect of foreign currency exchange rates
|
26
|
|
|
—
|
|
||
|
Cash and cash equivalents, beginning of period
|
99,822
|
|
|
189,270
|
|
||
|
Cash and cash equivalents, end of period
|
$
|
74,504
|
|
|
$
|
127,251
|
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
For the Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Supplemental information:
|
|
|
|
||||
|
Interest paid during the period
|
$
|
12,133
|
|
|
$
|
10,357
|
|
|
Taxes, including excise tax, paid during the period
|
$
|
16
|
|
|
$
|
18
|
|
|
Distributions reinvested
|
$
|
10,167
|
|
|
$
|
14,898
|
|
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Senior Secured First Lien
Debt - 128.9% (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Abaco Systems Holding Corp. (c) (i)
|
|
Business Services
|
|
L+6.00% (8.34%), 12/7/2021
|
|
$
|
23,638
|
|
|
$
|
23,284
|
|
|
$
|
23,094
|
|
|
1.6
|
%
|
|
ABC Financial Intermediate, LLC (j)
|
|
Media
|
|
L+4.25% (5.94%), 1/2/2025
|
|
7,739
|
|
|
7,702
|
|
|
7,797
|
|
|
0.5
|
%
|
|||
|
Ability Networks Inc. (j)
|
|
Health Care Providers & Services
|
|
L+3.75% (5.54%), 12/13/2024
|
|
13,573
|
|
|
13,508
|
|
|
13,573
|
|
|
0.9
|
%
|
|||
|
Adams Publishing Group, LLC (c) (i)
|
|
Media
|
|
L+7.00% (9.30%), 11/3/2020
|
|
15,357
|
|
|
15,235
|
|
|
15,357
|
|
|
1.0
|
%
|
|||
|
Adams Publishing Group, LLC (c)
|
|
Media
|
|
L+7.00% (9.30%), 11/3/2020
|
|
4,432
|
|
|
4,432
|
|
|
4,432
|
|
|
0.3
|
%
|
|||
|
Aleris International, Inc. (x)
|
|
Metals & Mining
|
|
9.50%, 4/1/2021
|
|
2,882
|
|
|
3,035
|
|
|
2,999
|
|
|
0.2
|
%
|
|||
|
Alvogen Pharma US, Inc. (j)
|
|
Health Care
|
|
L+5.00% (6.88%), 4/2/2022
|
|
13,857
|
|
|
13,758
|
|
|
13,875
|
|
|
0.9
|
%
|
|||
|
AMI Entertainment Network, LLC (c) (f) (i)
|
|
Hotels, Restaurants & Leisure
|
|
L+6.00% (7.69%), 7/21/2022
|
|
14,539
|
|
|
14,289
|
|
|
14,285
|
|
|
1.0
|
%
|
|||
|
Amports, Inc. (c) (m)
|
|
Transportation Infrastructure
|
|
L+5.00% (6.88%), 5/19/2020
|
|
14,876
|
|
|
14,837
|
|
|
14,876
|
|
|
1.0
|
%
|
|||
|
Amteck, LLC (c) (i)
|
|
Commercial Services & Supplies
|
|
L+6.50% (8.81%), 7/2/2020
|
|
20,545
|
|
|
20,384
|
|
|
20,545
|
|
|
1.4
|
%
|
|||
|
Amteck, LLC (c)
|
|
Commercial Services & Supplies
|
|
L+6.50% (8.81%), 7/2/2020
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
0.3
|
%
|
|||
|
Answers Corporation (c) (p)
|
|
Technology
|
|
L+5.00% (6.88%), 4/15/2021
|
|
2,999
|
|
|
2,942
|
|
|
2,909
|
|
|
0.2
|
%
|
|||
|
AP Gaming I, LLC (i) (j)
|
|
Gaming/Lodging
|
|
L+4.25% (6.13%), 2/15/2024
|
|
33,507
|
|
|
33,443
|
|
|
33,884
|
|
|
2.3
|
%
|
|||
|
AP NMT Acquisition B.V. (m)
|
|
Media
|
|
L+5.75% (8.06%),8/13/2021
|
|
6,620
|
|
|
6,639
|
|
|
6,616
|
|
|
0.4
|
%
|
|||
|
APCO Holdings (c) (i)
|
|
Diversified Consumer Services
|
|
L+6.00% (7.88%), 1/29/2022
|
|
3,642
|
|
|
3,570
|
|
|
3,568
|
|
|
0.2
|
%
|
|||
|
Applied Merchant Systems West Coast, Inc. (c) (m)
|
|
Diversified Financial Services
|
|
L+11.50% (13.20%), 10/26/2020
|
|
18,597
|
|
|
18,401
|
|
|
17,295
|
|
|
1.2
|
%
|
|||
|
Applied Merchant Systems West Coast, Inc. (c) (m)
|
|
Diversified Financial Services
|
|
L+11.50% (13.20%), 10/26/2020
|
|
6,500
|
|
|
6,432
|
|
|
6,045
|
|
|
0.4
|
%
|
|||
|
AqGen Ascensus Inc. (c) (j)
|
|
Technology
|
|
L+3.50% (5.80%), 12/3/2022
|
|
19,588
|
|
|
19,588
|
|
|
19,588
|
|
|
1.3
|
%
|
|||
|
AqGen Ascensus Inc. (c) (f)
|
|
Technology
|
|
L+3.50% (5.80%), 12/3/2022
|
|
3,704
|
|
|
3,696
|
|
|
3,704
|
|
|
0.3
|
%
|
|||
|
Avatar Purchaser, Inc. (c) (m)
|
|
Business Services
|
|
L+7.50% (10.00%), 11/17/2025
|
|
11,716
|
|
|
11,381
|
|
|
11,530
|
|
|
0.8
|
%
|
|||
|
Avaya Holdings Corp. (j)
|
|
Communications Equipment
|
|
L+4.75% (6.54%), 12/15/2024
|
|
26,581
|
|
|
26,334
|
|
|
26,748
|
|
|
1.8
|
%
|
|||
|
BCP Raptor, LLC (j)
|
|
Energy Equipment & Services
|
|
L+4.25% (6.04%), 6/24/2024
|
|
19,935
|
|
|
19,757
|
|
|
20,035
|
|
|
1.4
|
%
|
|||
|
BCP Renaissance, LLC (j)
|
|
Energy Equipment & Services
|
|
L+4.00% (5.77%), 10/31/2024
|
|
8,472
|
|
|
8,432
|
|
|
8,507
|
|
|
0.6
|
%
|
|||
|
BDS Solutions Group, LLC (c) (i) (m)
|
|
Business Services
|
|
L+8.75% (11.06%), 6/1/2021
|
|
32,399
|
|
|
31,934
|
|
|
32,399
|
|
|
2.2
|
%
|
|||
|
BDS Solutions Group, LLC (c)
|
|
Business Services
|
|
L+8.75% (11.06%), 6/1/2021
|
|
2,831
|
|
|
2,789
|
|
|
2,831
|
|
|
0.2
|
%
|
|||
|
Beaver-Visitec International Holdings, Inc. (c) (j)
|
|
Health Care
|
|
L+5.00% (7.30%), 8/21/2023
|
|
6,563
|
|
|
6,563
|
|
|
6,562
|
|
|
0.4
|
%
|
|||
|
Black Mountain Sand, LLC (c) (f)
|
|
Energy Equipment & Services
|
|
L+9.00% (10.69%), 11/30/2021
|
|
13,050
|
|
|
12,871
|
|
|
12,869
|
|
|
0.9
|
%
|
|||
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Black Mountain Sand, LLC (c)
|
|
Energy Equipment & Services
|
|
L+9.00% (10.81%), 11/30/2021
|
|
$
|
6,525
|
|
|
$
|
6,428
|
|
|
$
|
6,434
|
|
|
0.4
|
%
|
|
Blount International, Inc. (j)
|
|
Commercial Services & Supplies
|
|
L+4.25% (5.92%), 4/12/2023
|
|
12,500
|
|
|
12,471
|
|
|
12,656
|
|
|
0.9
|
%
|
|||
|
California Resources Corp. (m)
|
|
Metals & Mining
|
|
L+4.75% (6.57%), 12/31/2022
|
|
12,259
|
|
|
12,023
|
|
|
12,424
|
|
|
0.8
|
%
|
|||
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) (c) (l) (o) (t)
|
|
Food Products
|
|
L+12.50% (13.88%), 9/25/2020
|
|
21,208
|
|
|
16,406
|
|
|
2,969
|
|
|
0.2
|
%
|
|||
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) (c) (l) (o) (t)
|
|
Food Products
|
|
L+12.50% (13.88%), 9/25/2020
|
|
49,012
|
|
|
33,647
|
|
|
6,862
|
|
|
0.5
|
%
|
|||
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) (c) (l) (o) (t)
|
|
Food Products
|
|
L+12.50% (13.88%)
4/28/2019 |
|
2,934
|
|
|
2,829
|
|
|
2,876
|
|
|
0.2
|
%
|
|||
|
Catapult Learning, LLC (c) (i) (m)
|
|
Diversified Consumer Services
|
|
L+6.50% (8.27%), 7/16/2020
|
|
26,776
|
|
|
26,530
|
|
|
25,571
|
|
|
1.7
|
%
|
|||
|
CCW, LLC (c) (f) (i)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.94%), 3/21/2021
|
|
27,750
|
|
|
27,466
|
|
|
27,750
|
|
|
1.9
|
%
|
|||
|
Central Security Group, Inc. (c) (i) (j)
|
|
Commercial Services & Supplies
|
|
L+5.63% (7.50%), 10/6/2021
|
|
25,228
|
|
|
24,954
|
|
|
25,102
|
|
|
1.7
|
%
|
|||
|
Chicken Soup for the Soul Publishing, LLC (c)
|
|
Media
|
|
L+6.25% (7.92%), 1/8/2019
|
|
27,386
|
|
|
27,333
|
|
|
24,236
|
|
|
1.6
|
%
|
|||
|
Chloe Ox Parent, LLC (j)
|
|
Health Care Providers & Services
|
|
L+5.00% (7.30%), 12/23/2024
|
|
10,768
|
|
|
10,664
|
|
|
10,876
|
|
|
0.7
|
%
|
|||
|
Clarion Events, Ltd (c) (j)
|
|
Business Services
|
|
L+5.00% (6.77%), 3/22/2025
|
|
5,817
|
|
|
5,701
|
|
|
5,701
|
|
|
0.4
|
%
|
|||
|
Clover Technologies Group, LLC (j)
|
|
Commercial Services & Supplies
|
|
L+4.50% (6.38%), 5/8/2020
|
|
13,512
|
|
|
13,465
|
|
|
10,488
|
|
|
0.7
|
%
|
|||
|
Community Care Health Network, LLC (c) (j)
|
|
Health Care
|
|
L+4.75% (6.74%), 2/16/2025
|
|
2,686
|
|
|
2,679
|
|
|
2,703
|
|
|
0.2
|
%
|
|||
|
CONSOL Energy Inc. (j)
|
|
Metals & Mining
|
|
L+6.00% (7.99%), 11/28/2022
|
|
3,232
|
|
|
3,171
|
|
|
3,311
|
|
|
0.2
|
%
|
|||
|
Contura Energy Inc. (j)
|
|
Energy Equipment & Services
|
|
L+5.00% (6.88%), 3/18/2024
|
|
7,472
|
|
|
7,408
|
|
|
7,449
|
|
|
0.5
|
%
|
|||
|
ConvergeOne Holdings Corp. (c) (j)
|
|
Technology
|
|
L+4.75% (6.63%), 6/20/2024
|
|
16,434
|
|
|
16,287
|
|
|
16,434
|
|
|
1.1
|
%
|
|||
|
Corfin Industries LLC (c) (f)
|
|
Industrials
|
|
L+6.50% (8.49%), 2/15/2024
|
|
8,615
|
|
|
8,446
|
|
|
8,443
|
|
|
0.6
|
%
|
|||
|
Corfin Industries LLC (c) (f)
|
|
Industrials
|
|
L+6.50% (8.49%), 2/15/2024
|
|
48
|
|
|
48
|
|
|
47
|
|
|
0.1
|
%
|
|||
|
Cvent, Inc. (j)
|
|
Internet Software & Services
|
|
L+3.75% (5.63%), 11/29/2024
|
|
16,436
|
|
|
16,337
|
|
|
16,518
|
|
|
1.1
|
%
|
|||
|
DigiCert, Inc (j)
|
|
Internet Software & Services
|
|
L+4.75% (6.52%), 10/31/2024
|
|
10,800
|
|
|
10,749
|
|
|
10,915
|
|
|
0.7
|
%
|
|||
|
Eagle Rx, LLC (c) (i)
|
|
Health Care Providers & Services
|
|
L+4.00% (5.91%) 8/15/2019
|
|
27,157
|
|
|
27,085
|
|
|
27,157
|
|
|
1.8
|
%
|
|||
|
Elo Touch Solutions, Inc (c) (j)
|
|
Technology
|
|
L+6.00% (8.00%), 10/31/2023
|
|
3,542
|
|
|
3,508
|
|
|
3,542
|
|
|
0.2
|
%
|
|||
|
ERG Holding Company (c) (i) (m)
|
|
Health Care Providers & Services
|
|
L+6.75% (9.07%), 4/4/2019
|
|
33,923
|
|
|
33,722
|
|
|
33,923
|
|
|
2.3
|
%
|
|||
|
ERG Holding Company (c) (f)
|
|
Health Care Providers & Services
|
|
L+6.75% (9.07%), 4/4/2019
|
|
188
|
|
|
188
|
|
|
188
|
|
|
0.1
|
%
|
|||
|
Everi Payments, Inc. (j)
|
|
Hotels, Restaurants & Leisure
|
|
L+3.50% (5.49%), 5/9/2024
|
|
10,628
|
|
|
10,613
|
|
|
10,694
|
|
|
0.7
|
%
|
|||
|
Excelitas Technologies Corp. (j)
|
|
Electronic Equipment, Instruments & Components
|
|
L+3.50% (5.16%), 12/2/2024
|
|
9,975
|
|
|
9,951
|
|
|
10,058
|
|
|
0.7
|
%
|
|||
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Frontier Communications (m)
|
|
Diversified Telecommunications Services
|
|
L+3.75% (5.63%), 6/15/2024
|
|
$
|
5,541
|
|
|
$
|
5,468
|
|
|
$
|
5,461
|
|
|
0.4
|
%
|
|
Genesys Telecommunications Laboratories, Inc. (j)
|
|
Diversified Telecommunication Services
|
|
L+3.50% (5.80%), 12/1/2023
|
|
24,689
|
|
|
24,387
|
|
|
24,828
|
|
|
1.7
|
%
|
|||
|
Greenwave Holdings, Inc. (c) (d) (l)
|
|
Internet Software & Services
|
|
13.00%, 7/8/2019
|
|
10,278
|
|
|
10,245
|
|
|
9,765
|
|
|
0.7
|
%
|
|||
|
GTCR Valor Companies, Inc. (j)
|
|
Internet Software & Services
|
|
L+3.25% (5.13%), 6/16/2023
|
|
9,950
|
|
|
9,928
|
|
|
10,027
|
|
|
0.7
|
%
|
|||
|
HC Group Holdings III, Inc. (j)
|
|
Health Care
|
|
L+5.00% (6.88%), 4/7/2022
|
|
14,743
|
|
|
14,542
|
|
|
14,909
|
|
|
1.0
|
%
|
|||
|
Hexion Inc. (x)
|
|
Chemicals
|
|
10.38%, 2/1/2022
|
|
920
|
|
|
920
|
|
|
890
|
|
|
0.1
|
%
|
|||
|
Hexion Inc. (x)
|
|
Chemicals
|
|
6.63%, 4/15/2020
|
|
6,689
|
|
|
6,025
|
|
|
6,237
|
|
|
0.4
|
%
|
|||
|
ICR Operations, LLC (c) (i)
|
|
Business Services
|
|
L+5.50% (7.79%), 3/26/2025
|
|
13,670
|
|
|
13,397
|
|
|
13,397
|
|
|
0.9
|
%
|
|||
|
ICR Operations, LLC (c) (f)
|
|
Business Services
|
|
L+5.50% (7.79%),3/26/2024
|
|
165
|
|
|
162
|
|
|
162
|
|
|
0.1
|
%
|
|||
|
Ideal Tridon Holdings, Inc. (c) (m)
|
|
Commercial Services & Supplies
|
|
L+5.50% (8.07%), 7/31/2023
|
|
23,857
|
|
|
23,433
|
|
|
23,430
|
|
|
1.6
|
%
|
|||
|
Ideal Tridon Holdings, Inc. (c) (f)
|
|
Commercial Services & Supplies
|
|
L+5.50% (8.07%), 7/31/2022
|
|
546
|
|
|
513
|
|
|
537
|
|
|
0.1
|
%
|
|||
|
Indivior Finance S.A.R.L. (i)
|
|
Health Care
|
|
L+4.50% (6.42%), 12/18/2022
|
|
6,965
|
|
|
6,932
|
|
|
6,974
|
|
|
0.5
|
%
|
|||
|
InMotion Entertainment Group, LLC (c) (i)
|
|
Specialty Retail
|
|
L+7.25% (9.57%), 10/1/2021
|
|
13,153
|
|
|
13,112
|
|
|
13,153
|
|
|
0.9
|
%
|
|||
|
InMotion Entertainment Group, LLC (c) (f) (i)
|
|
Specialty Retail
|
|
L+7.75% (10.07%), 10/1/2021
|
|
322
|
|
|
322
|
|
|
322
|
|
|
0.1
|
%
|
|||
|
Intelsat S.A. (m)
|
|
Diversified Telecommunication Services
|
|
L+4.50% (6.46%), 1/2/2024
|
|
665
|
|
|
665
|
|
|
682
|
|
|
0.1
|
%
|
|||
|
Intelsat S.A. (m)
|
|
Diversified Telecommunication Services
|
|
L+4.50% (6.46%), 1/2/2024
|
|
2,211
|
|
|
2,211
|
|
|
2,236
|
|
|
0.2
|
%
|
|||
|
Internap Corporation (c) (j) (m)
|
|
Communications Equipment
|
|
L+5.75% (7.65%), 4/6/2022
|
|
20,158
|
|
|
20,040
|
|
|
20,220
|
|
|
1.4
|
%
|
|||
|
IPC Corp. (j)
|
|
Diversified Telecommunication Services
|
|
L+4.50% (6.27%), 8/6/2021
|
|
3,784
|
|
|
3,730
|
|
|
3,703
|
|
|
0.3
|
%
|
|||
|
Iridium Communications, Inc. (x)
|
|
Diversified Telecommunications Services
|
|
10.25%, 4/15/2023
|
|
3,536
|
|
|
3,536
|
|
|
3,633
|
|
|
0.2
|
%
|
|||
|
Jackson Hewitt, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+7.00% (8.77%), 7/30/2020
|
|
6,515
|
|
|
6,454
|
|
|
6,466
|
|
|
0.4
|
%
|
|||
|
K2 Pure Solutions NoCal, L.P. (c) (i)
|
|
Chemicals
|
|
L+6.00% (7.88%), 2/19/2021
|
|
6,500
|
|
|
6,450
|
|
|
6,500
|
|
|
0.4
|
%
|
|||
|
Kahala Ireland OpCo Designated Activity Company (a) (c) (l) (o)
|
|
Aerospace & Defense
|
|
L+8.00% (13.00%),12/23/2028
|
|
141,549
|
|
|
141,549
|
|
|
141,549
|
|
|
9.6
|
%
|
|||
|
Kissner Milling Co. Ltd. (x)
|
|
Chemicals
|
|
8.38%, 12/1/2022
|
|
21,199
|
|
|
21,516
|
|
|
21,755
|
|
|
1.5
|
%
|
|||
|
Lakeland Tours, LLC (f)
|
|
Diversified Consumer Services
|
|
L+4.00% (6.12%), 12/15/2024
|
|
5,634
|
|
|
5,620
|
|
|
5,690
|
|
|
0.4
|
%
|
|||
|
LenderLive Services, LLC (c)
|
|
Business Services
|
|
L+12.00% (13.85%), 8/11/2020
|
|
10,000
|
|
|
9,881
|
|
|
10,000
|
|
|
0.7
|
%
|
|||
|
Lightsquared LP (l)
|
|
Diversified Telecommunications Services
|
|
L+8.75% (10.78%), 12/7/2020
|
|
11,606
|
|
|
10,932
|
|
|
10,155
|
|
|
0.7
|
%
|
|||
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Lionbridge Technologies, Inc. (c) (i)
|
|
Business Services
|
|
L+5.50% (7.38%), 2/28/2024
|
|
$
|
13,729
|
|
|
$
|
13,671
|
|
|
$
|
13,670
|
|
|
0.9
|
%
|
|
Loparex International Holding B.V. (c) (j)
|
|
Industrials
|
|
L+4.25% (6.59%), 4/11/2025
|
|
2,003
|
|
|
1,993
|
|
|
1,993
|
|
|
0.1
|
%
|
|||
|
MCS Acquisition Corp. (c) (j)
|
|
Professional Services
|
|
L+4.75% (6.63%), 5/18/2024
|
|
14,261
|
|
|
14,206
|
|
|
14,261
|
|
|
1.0
|
%
|
|||
|
Medallion Midland Acquisition, L.P. (j)
|
|
Energy Equipment & Services
|
|
L+3.25% (5.13%), 11/13/2024
|
|
4,439
|
|
|
4,428
|
|
|
4,428
|
|
|
0.3
|
%
|
|||
|
Medical Depot Holdings, Inc. (c) (i)
|
|
Health Care
|
|
L+5.50% (7.80%),
1/3/2023 |
|
19,644
|
|
|
18,224
|
|
|
18,192
|
|
|
1.2
|
%
|
|||
|
Michael Baker International, LLC (c) (j)
|
|
Business Services
|
|
L+4.50% (6.34%), 11/21/2022
|
|
5,607
|
|
|
5,555
|
|
|
5,610
|
|
|
0.4
|
%
|
|||
|
Midwest Can Company, LLC (c) (f) (i)
|
|
Energy Equipment & Services
|
|
L+6.75% (8.63%), 1/26/2022
|
|
5,054
|
|
|
4,986
|
|
|
5,075
|
|
|
0.3
|
%
|
|||
|
MMM Holdings, LLC (c) (f) (i)
|
|
Health Care
|
|
L+6.25% (8.37%), 3/15/2023
|
|
20,578
|
|
|
20,170
|
|
|
20,166
|
|
|
1.4
|
%
|
|||
|
Monitronics International, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+5.50% (7.80%), 9/30/2022
|
|
11,850
|
|
|
11,872
|
|
|
11,517
|
|
|
0.8
|
%
|
|||
|
Montreign Operating Company, LLC (c) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (10.13%), 1/24/2023
|
|
27,161
|
|
|
26,753
|
|
|
26,951
|
|
|
1.8
|
%
|
|||
|
Mood Media Corporation (c) (m)
|
|
Business Services
|
|
L+7.25% (9.55%), 6/28/2022
|
|
13,806
|
|
|
13,549
|
|
|
13,520
|
|
|
0.9
|
%
|
|||
|
Motion Recruitment Partners, LLC (c) (f) (i)
|
|
Professional Services
|
|
L+6.00% (7.89%), 2/13/2020
|
|
17,069
|
|
|
16,917
|
|
|
17,069
|
|
|
1.2
|
%
|
|||
|
Murray Energy Holdings Co. (j)
|
|
Energy Equipment & Services
|
|
L+7.25% (9.55%), 4/16/2020
|
|
11,340
|
|
|
11,028
|
|
|
9,582
|
|
|
0.6
|
%
|
|||
|
National Technical Systems, Inc. (c) (i)
|
|
Professional Services
|
|
L+6.25% (7.91%), 6/12/2021
|
|
16,469
|
|
|
16,383
|
|
|
15,481
|
|
|
1.0
|
%
|
|||
|
Navitas Midstream Midland Basin, LLC (j)
|
|
Energy Equipment & Services
|
|
L+4.50% (6.40%), 12/13/2024
|
|
8,461
|
|
|
8,424
|
|
|
8,445
|
|
|
0.6
|
%
|
|||
|
New Star Metals, Inc. (c) (m)
|
|
Business Services
|
|
L+9.50% (11.80%), 12/22/2021
|
|
24,328
|
|
|
23,921
|
|
|
24,357
|
|
|
1.7
|
%
|
|||
|
NexSteppe Inc. (c) (l) (t)
|
|
Chemicals
|
|
12.00%, 9/30/2018
|
|
1,835
|
|
|
1,750
|
|
|
—
|
|
|
—
|
%
|
|||
|
NexSteppe Inc. (c) (l) (t)
|
|
Chemicals
|
|
12.00%, 9/30/2018
|
|
12,362
|
|
|
10,453
|
|
|
—
|
|
|
—
|
%
|
|||
|
Noosa Acquirer, Inc. (c) (i) (m)
|
|
Food Products
|
|
L+5.25% (7.14%), 11/21/2020
|
|
25,000
|
|
|
24,834
|
|
|
25,000
|
|
|
1.7
|
%
|
|||
|
NTM Acquisition Corp. (c) (i)
|
|
Media
|
|
L+6.25% (8.55%), 6/7/2022
|
|
18,434
|
|
|
18,256
|
|
|
18,341
|
|
|
1.2
|
%
|
|||
|
Office Depot, Inc. (j)
|
|
Specialty Retail
|
|
L+7.00% (8.71%), 11/8/2022
|
|
8,902
|
|
|
8,735
|
|
|
9,046
|
|
|
0.6
|
%
|
|||
|
Optiv, Inc. (j)
|
|
Business Services
|
|
L+3.25% (5.13%), 2/1/2024
|
|
4,443
|
|
|
4,227
|
|
|
4,282
|
|
|
0.3
|
%
|
|||
|
Orchid Underwriters Agency, LLC (c) (f) (i)
|
|
Insurance Broker
|
|
L+5.00% (7.30%), 3/17/2022
|
|
18,480
|
|
|
18,334
|
|
|
18,480
|
|
|
1.3
|
%
|
|||
|
ORG Chemical Holdings, LLC (c) (i) (w)
|
|
Chemicals
|
|
L+5.75% (8.05%), 6/30/2022
|
|
27,752
|
|
|
27,281
|
|
|
27,275
|
|
|
1.8
|
%
|
|||
|
ORG GC Holdings, LLC (c) (i) (w)
|
|
Business Services
|
|
L+6.00% (8.80%), 7/31/2022
|
|
25,485
|
|
|
25,154
|
|
|
25,024
|
|
|
1.7
|
%
|
|||
|
Peabody Energy Corp. (j)
|
|
Metals & Mining
|
|
L+3.50% (5.38%), 3/31/2022
|
|
2,608
|
|
|
2,602
|
|
|
2,611
|
|
|
0.2
|
%
|
|||
|
PeopLease Holdings, LLC (c) (i)
|
|
Commercial Services & Supplies
|
|
L+9.00% (11.31%), 2/26/2021
|
|
20,000
|
|
|
19,882
|
|
|
15,000
|
|
|
1.0
|
%
|
|||
|
PGX Holdings, Inc. (c) (j)
|
|
Transportation Infrastructure
|
|
L+5.25% (7.13%), 9/29/2020
|
|
12,456
|
|
|
12,413
|
|
|
12,083
|
|
|
0.8
|
%
|
|||
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Premier Dental Services, Inc. (i) (j)
|
|
Health Care
|
|
L+4.50% (6.38%), 6/30/2023
|
|
$
|
32,935
|
|
|
$
|
32,693
|
|
|
$
|
33,182
|
|
|
2.2
|
%
|
|
Premier Global Services, Inc. (j)
|
|
Diversified Telecommunication Services
|
|
L+6.50% (8.29%), 12/8/2021
|
|
9,229
|
|
|
8,985
|
|
|
9,187
|
|
|
0.6
|
%
|
|||
|
Pre-Paid Legal Services, Inc. (c) (j)
|
|
Diversified Consumer Services
|
|
L+5.25% (7.13%), 7/1/2019
|
|
11,010
|
|
|
11,023
|
|
|
11,010
|
|
|
0.7
|
%
|
|||
|
Pride Plating, Inc. (c) (i)
|
|
Aerospace & Defense
|
|
L+5.50%, (7.80%), 6/13/2019
|
|
8,259
|
|
|
8,238
|
|
|
8,176
|
|
|
0.6
|
%
|
|||
|
PSKW, LLC (c) (i)
|
|
Health Care Providers & Services
|
|
L+4.25% (6.55%), 11/25/2021
|
|
1,564
|
|
|
1,554
|
|
|
1,564
|
|
|
0.1
|
%
|
|||
|
PSKW, LLC (c) (m)
|
|
Health Care Providers & Services
|
|
L+8.26% (10.56%), 11/25/2021
|
|
17,750
|
|
|
17,533
|
|
|
17,750
|
|
|
1.2
|
%
|
|||
|
PSKW, LLC (c) (m)
|
|
Health Care Providers & Services
|
|
L+8.26% (10.56%), 11/25/2021
|
|
1,972
|
|
|
1,936
|
|
|
1,972
|
|
|
0.1
|
%
|
|||
|
PT Network, LLC (c) (i)
|
|
Health Care
|
|
L+5.50% (7.21%), 11/30/2021
|
|
16,892
|
|
|
16,768
|
|
|
16,630
|
|
|
1.1
|
%
|
|||
|
PT Network, LLC (c) (f)
|
|
Health Care
|
|
L+4.50% (9.25%), 11/30/2021
|
|
658
|
|
|
658
|
|
|
648
|
|
|
0.1
|
%
|
|||
|
Pure Barre, LLC (c) (i) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.88%), 6/11/2020
|
|
25,623
|
|
|
25,426
|
|
|
25,239
|
|
|
1.7
|
%
|
|||
|
Pure Barre, LLC (c)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.88%), 6/11/2020
|
|
500
|
|
|
500
|
|
|
493
|
|
|
0.1
|
%
|
|||
|
Quorum Health Corporation (j)
|
|
Health Care
|
|
L+6.75% (8.63%),4/29/2022
|
|
4,308
|
|
|
4,399
|
|
|
4,394
|
|
|
0.3
|
%
|
|||
|
Resco Products, Inc. (c) (i)
|
|
Metals & Mining
|
|
L+6.25% (7.90%), 3/7/2020
|
|
10,000
|
|
|
10,000
|
|
|
9,750
|
|
|
0.7
|
%
|
|||
|
Sage Automotive Holdings, Inc. (c) (j)
|
|
Auto Components
|
|
L+5.00% (6.88%), 11/8/2022
|
|
18,414
|
|
|
18,282
|
|
|
18,414
|
|
|
1.2
|
%
|
|||
|
SHO Holding II Corporation (c) (j)
|
|
Specialty Retail
|
|
L+5.00% (6.79%), 10/27/2022
|
|
9,745
|
|
|
9,680
|
|
|
8,771
|
|
|
0.6
|
%
|
|||
|
Skillsoft Corp. (j) (m)
|
|
Technology
|
|
L+4.75% (6.63%), 4/28/2021
|
|
17,134
|
|
|
16,409
|
|
|
16,515
|
|
|
1.1
|
%
|
|||
|
Squan Holding Corp. (c)
|
|
Diversified Telecommunication Services
|
|
L+6.00% (8.31%), 10/10/2019
|
|
16,878
|
|
|
14,824
|
|
|
13,502
|
|
|
0.9
|
%
|
|||
|
SSH Group Holdings, Inc. (c) (i)
|
|
Diversified Consumer Services
|
|
L+5.00% (7.45%), 10/2/2024
|
|
6,073
|
|
|
6,016
|
|
|
6,061
|
|
|
0.4
|
%
|
|||
|
Steel City Media (c)
|
|
Media
|
|
L+4.75% (8.25%),3/29/2020
|
|
37,956
|
|
|
37,956
|
|
|
37,576
|
|
|
2.5
|
%
|
|||
|
Stepstone Group LP (c) (i)
|
|
Financial Services
|
|
L+4.00% (5.90%), 3/27/2025
|
|
2,932
|
|
|
2,917
|
|
|
2,917
|
|
|
0.2
|
%
|
|||
|
Subsea Global Solutions, LLC (c) (f) (i)
|
|
Business Services
|
|
L+7.00% (9.30%), 3/29/2023
|
|
8,475
|
|
|
8,306
|
|
|
8,306
|
|
|
0.6
|
%
|
|||
|
SunGard Availability Services Capital, Inc. (j)
|
|
IT Services
|
|
L+10.00% (11.88%), 10/1/2022
|
|
3,430
|
|
|
3,421
|
|
|
3,374
|
|
|
0.2
|
%
|
|||
|
Tax Defense Network, LLC (c) (l) (t)
|
|
Diversified Consumer Services
|
|
L+13.00% (15.31%), 8/28/2019
|
|
30,602
|
|
|
26,532
|
|
|
7,713
|
|
|
0.5
|
%
|
|||
|
Thoughtworks, Inc. (c) (j)
|
|
Business Services
|
|
L+4.50% (6.38%), 10/12/2024
|
|
4,420
|
|
|
4,410
|
|
|
4,420
|
|
|
0.3
|
%
|
|||
|
Tillamook Country Smoker, LLC (c) (i)
|
|
Food Products
|
|
L+5.75% (7.64%), 5/19/2022
|
|
10,244
|
|
|
10,117
|
|
|
10,116
|
|
|
0.7
|
%
|
|||
|
Tillamook Country Smoker, LLC (c) (f)
|
|
Food Products
|
|
L+5.75% (7.49%), 5/19/2022
|
|
809
|
|
|
809
|
|
|
799
|
|
|
0.1
|
%
|
|||
|
Traverse Midstream Partners, LLC (j)
|
|
Energy Equipment & Services
|
|
L+4.00% (5.85%), 9/27/2024
|
|
6,352
|
|
|
6,322
|
|
|
6,384
|
|
|
0.4
|
%
|
|||
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Trilogy International Partners, LLC (x)
|
|
Diversified Telecommunication Services
|
|
8.88%, 5/1/2022
|
|
$
|
14,875
|
|
|
$
|
14,813
|
|
|
$
|
15,247
|
|
|
1.0
|
%
|
|
Trojan Battery Company, LLC (j)
|
|
Auto Components
|
|
L+4.75% (6.69%), 6/12/2021
|
|
10,451
|
|
|
10,402
|
|
|
10,451
|
|
|
0.7
|
%
|
|||
|
Turning Tech LLC (c) (i)
|
|
Software
|
|
L+9.75% (12.06%), 6/30/2020
|
|
20,669
|
|
|
20,509
|
|
|
18,602
|
|
|
1.3
|
%
|
|||
|
Twenty Eighty, Inc. (c) (f) (l) (p)
|
|
Media
|
|
8.00%, 3/31/2020
|
|
6,357
|
|
|
4,748
|
|
|
6,229
|
|
|
0.4
|
%
|
|||
|
Twenty Eighty, Inc. (c) (f) (l) (p)
|
|
Media
|
|
L+8.00% (10.30%), 3/31/2020
|
|
2,887
|
|
|
2,448
|
|
|
2,887
|
|
|
0.2
|
%
|
|||
|
Twenty Eighty, Inc. (c) (f) (l) (p)
|
|
Media
|
|
9.00%, 3/31/2020
|
|
5,880
|
|
|
4,424
|
|
|
5,762
|
|
|
0.4
|
%
|
|||
|
United Central Industrial Supply Company, LLC (c) (i) (j)
|
|
Commercial Services & Supplies
|
|
L+7.25% (9.13%), 10/9/2018
|
|
8,481
|
|
|
8,467
|
|
|
8,072
|
|
|
0.5
|
%
|
|||
|
USF S&H Holdco, LLC (c) (f) (i)
|
|
Hotels, Restaurants & Leisure
|
|
L+5.75% (7.93%), 3/19/2024
|
|
24,245
|
|
|
23,883
|
|
|
23,881
|
|
|
1.6
|
%
|
|||
|
US Salt, LLC (c) (i) (m)
|
|
Food Products
|
|
L+4.75% (6.63%), 12/1/2023
|
|
5,189
|
|
|
5,139
|
|
|
5,135
|
|
|
0.3
|
%
|
|||
|
US Salt, LLC (c) (f)
|
|
Food Products
|
|
L+4.75% (6.63%), 12/1/2023
|
|
1,254
|
|
|
1,254
|
|
|
1,241
|
|
|
0.1
|
%
|
|||
|
VCVH Holding Corp. (c) (i) (j)
|
|
Health Care
|
|
L+5.00% (7.31%), 6/1/2023
|
|
26,034
|
|
|
25,901
|
|
|
26,224
|
|
|
1.8
|
%
|
|||
|
Veritas US Inc. (j)
|
|
Technology
|
|
L+4.50% (6.80%), 1/27/2023
|
|
14,981
|
|
|
15,020
|
|
|
14,911
|
|
|
1.0
|
%
|
|||
|
Veritas US Inc. (x)
|
|
Technology
|
|
10.50%, 2/1/2024
|
|
15,393
|
|
|
15,199
|
|
|
14,396
|
|
|
1.2
|
%
|
|||
|
VetCor Professional Practices LLC (c) (f) (i)
|
|
Diversified Consumer Services
|
|
L+6.25% (8.56%), 4/20/2021
|
|
17,987
|
|
|
17,908
|
|
|
17,808
|
|
|
1.0
|
%
|
|||
|
Von Drehle Corporation (c) (i) (m)
|
|
Life Sciences Tools & Services
|
|
L+7.50% (9.19%), 3/6/2023
|
|
26,045
|
|
|
25,679
|
|
|
25,751
|
|
|
1.7
|
%
|
|||
|
Xplornet Communications, Inc. (a) (j)
|
|
Diversified Telecommunication Services
|
|
L+4.00% (6.30%), 9/9/2021
|
|
13,094
|
|
|
13,023
|
|
|
13,119
|
|
|
0.9
|
%
|
|||
|
Sub Total Senior Secured First Lien Debt
|
|
|
|
|
|
|
|
$
|
1,982,847
|
|
|
$
|
1,900,969
|
|
|
128.9
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Senior Secured Second Lien Debt - 16.1% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Anchor Glass Container Corporation (c) (m)
|
|
Containers & Packaging
|
|
L+7.75% (9.49%), 12/7/2024
|
|
$
|
20,000
|
|
|
$
|
19,833
|
|
|
$
|
19,194
|
|
|
1.3
|
%
|
|
Answers Corporation (c) (p)
|
|
Technology
|
|
L+7.90% (9.00%), 9/15/2021
|
|
4,663
|
|
|
4,116
|
|
|
4,360
|
|
|
0.3
|
%
|
|||
|
Astro AB Merger Sub, Inc. (m)
|
|
Diversified Financial Services
|
|
L+7.50% (9.27%), 4/30/2023
|
|
7,758
|
|
|
7,758
|
|
|
7,855
|
|
|
0.5
|
%
|
|||
|
Boston Market Corporation (c) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (10.24%), 12/16/2018
|
|
24,039
|
|
|
23,984
|
|
|
21,154
|
|
|
1.4
|
%
|
|||
|
BrandMuscle Holdings Inc. (c) (m)
|
|
Internet Software & Services
|
|
L+8.50% (10.19%), 6/1/2022
|
|
24,500
|
|
|
24,185
|
|
|
24,500
|
|
|
1.7
|
%
|
|||
|
Carlisle FoodService Products, Incorporated (c)
|
|
Food Products
|
|
L+7.75% (9.65%), 3/20/2026
|
|
10,719
|
|
|
10,506
|
|
|
10,505
|
|
|
0.7
|
%
|
|||
|
CDS U.S. Intermediate Holdings, Inc. (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (10.55%), 7/8/2023
|
|
7,927
|
|
|
7,814
|
|
|
7,828
|
|
|
0.5
|
%
|
|||
|
CIG Financial, LLC (a) (c) (m)
|
|
Consumer Finance
|
|
10.50%, 6/30/2019
|
|
9,000
|
|
|
8,978
|
|
|
8,370
|
|
|
0.6
|
%
|
|||
|
CIG Financial, LLC (a) (c) (f)
|
|
Consumer Finance
|
|
10.50%, 6/30/2019
|
|
1,000
|
|
|
1,000
|
|
|
930
|
|
|
0.1
|
%
|
|||
|
CP VI Bella Blocker Topco, LLC (m)
|
|
Health Care
|
|
L+6.75% (8.63%), 12/28/2025
|
|
2,009
|
|
|
1,999
|
|
|
2,001
|
|
|
0.1
|
%
|
|||
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
CREDITCORP (x)
|
|
Consumer Finance
|
|
12.00%, 7/15/2018
|
|
$
|
13,250
|
|
|
$
|
13,243
|
|
|
$
|
12,356
|
|
|
0.8
|
%
|
|
Epic Health Services, Inc. (m)
|
|
Health Care Providers & Services
|
|
L+8.00% (9.88%), 3/17/2025
|
|
15,000
|
|
|
14,803
|
|
|
14,875
|
|
|
1.0
|
%
|
|||
|
Genex Holdings, Inc.
|
|
Health Care
|
|
L+7.00% (9.05%), 3/6/2026
|
|
2,305
|
|
|
2,282
|
|
|
2,309
|
|
|
0.2
|
%
|
|||
|
Hertz Corp. (x)
|
|
Automobiles
|
|
7.63%, 6/1/2022
|
|
14,194
|
|
|
14,194
|
|
|
14,394
|
|
|
1.0
|
%
|
|||
|
PetVet Care Centers, LLC (c) (m)
|
|
Business Services
|
|
L+2.75% (4.65%),
2/13/2026 |
|
3,539
|
|
|
3,521
|
|
|
3,522
|
|
|
0.2
|
%
|
|||
|
PI US Holdco III Limited (c) (m)
|
|
Consumer Finance
|
|
L+7.25% (9.11%), 12/20/2025
|
|
6,696
|
|
|
6,630
|
|
|
6,685
|
|
|
0.5
|
%
|
|||
|
Recess Holdings, Inc. (c) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.75% (10.20%), 9/29/2025
|
|
13,008
|
|
|
12,823
|
|
|
12,813
|
|
|
0.9
|
%
|
|||
|
Rx30 HoldCo, Inc. (c) (m)
|
|
Health Care Technology
|
|
L+9.00% (11.33%), 6/15/2022
|
|
11,500
|
|
|
11,361
|
|
|
11,500
|
|
|
0.8
|
%
|
|||
|
Rx30 HoldCo, Inc. (c) (m)
|
|
Health Care Technology
|
|
L+9.00% (11.33%), 6/15/2022
|
|
1,229
|
|
|
1,206
|
|
|
1,229
|
|
|
0.1
|
%
|
|||
|
TierPoint, LLC (c) (m)
|
|
Technology
|
|
L+3.75% (5.63%), 5/5/2025
|
|
5,334
|
|
|
5,287
|
|
|
5,281
|
|
|
0.4
|
%
|
|||
|
Safe Fleet Holdings LLC (c) (m)
|
|
Industrials
|
|
L+6.75% (8.53%),2/1/2026
|
|
3,143
|
|
|
3,127
|
|
|
3,127
|
|
|
0.2
|
%
|
|||
|
U.S. Auto (c) (m)
|
|
Diversified Consumer Services
|
|
L+10.50% (12.39%), 6/8/2020
|
|
30,000
|
|
|
29,769
|
|
|
29,850
|
|
|
2.0
|
%
|
|||
|
US Salt, LLC (c) (m)
|
|
Food Products
|
|
L+8.75% (10.41%), 12/1/2024
|
|
12,872
|
|
|
12,688
|
|
|
12,686
|
|
|
0.8
|
%
|
|||
|
Sub Total Senior Secured Second Lien Debt
|
|
|
|
|
|
|
|
$
|
241,107
|
|
|
$
|
237,324
|
|
|
16.1
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Subordinated Debt - 8.8% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Ardent Legacy Acquisitions, Inc.
|
|
Health Care
|
|
L+8.50% (10.16%), 3/1/2023
|
|
$
|
21,222
|
|
|
$
|
20,904
|
|
|
$
|
21,302
|
|
|
1.5
|
%
|
|
BMC Software Finance, Inc. (x)
|
|
Software
|
|
8.13%, 7/15/2021
|
|
19,461
|
|
|
19,451
|
|
|
19,385
|
|
|
1.3
|
%
|
|||
|
Frontier Communications (x)
|
|
Diversified Telecommunication Services
|
|
8.13%, 10/1/2018
|
|
5,500
|
|
|
5,494
|
|
|
5,565
|
|
|
0.4
|
%
|
|||
|
Frontier Communications (x)
|
|
Diversified Telecommunication Services
|
|
8.50%, 4/15/2020
|
|
10,000
|
|
|
9,226
|
|
|
10,150
|
|
|
0.7
|
%
|
|||
|
Gold, Inc. (c) (m)
|
|
Textiles, Apparel & Luxury Goods
|
|
10.00%, 6/30/2019
|
|
3,742
|
|
|
3,700
|
|
|
3,443
|
|
|
0.2
|
%
|
|||
|
Park Ave RE Holdings, LLC (c) (d) (l) (o)
|
|
Real Estate Management & Development
|
|
L+8.00%, (13.00%), 12/31/2021
|
|
37,192
|
|
|
37,192
|
|
|
37,192
|
|
|
2.5
|
%
|
|||
|
Steel City Media (c) (l) (t)
|
|
Media
|
|
16.00%, 3/29/2020
|
|
24,717
|
|
|
24,536
|
|
|
21,010
|
|
|
1.4
|
%
|
|||
|
Xplornet Communications, Inc. (a) (l) (x)
|
|
Diversified Telecommunication Services
|
|
9.63%, 6/1/2022
|
|
10,534
|
|
|
10,534
|
|
|
11,061
|
|
|
0.8
|
%
|
|||
|
Sub Total Subordinated Debt
|
|
|
|
|
|
|
|
$
|
131,037
|
|
|
$
|
129,108
|
|
|
8.8
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Collateralized Securities - 10.9% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Collateralized Securities - Debt Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
NewStar Exeter Fund CLO - Debt (a) (c) (p)
|
|
Diversified Investment Vehicles
|
|
9.86%, 1/19/2027
|
|
$
|
10,728
|
|
|
$
|
9,302
|
|
|
$
|
8,445
|
|
|
0.6
|
%
|
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
WhiteHorse VIII, Ltd. CLO - Debt (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
6.32%, 5/1/2026
|
|
$
|
8,000
|
|
|
$
|
7,639
|
|
|
$
|
7,626
|
|
|
0.5
|
%
|
|
Collateralized Securities - Equity Investment
(n)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
B&M CLO 2014-1, LTD. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
6.03%, 4/16/2026
|
|
$
|
40,250
|
|
|
$
|
12,936
|
|
|
$
|
12,320
|
|
|
0.8
|
%
|
|
CVP Cascade CLO, LTD. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
12.18%, 1/16/2026
|
|
31,000
|
|
|
1,784
|
|
|
2,423
|
|
|
0.2
|
%
|
|||
|
Figueroa CLO 2014-1, LTD. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
2.79%, 1/15/2027
|
|
35,057
|
|
|
12,079
|
|
|
12,198
|
|
|
0.8
|
%
|
|||
|
MidOcean Credit CLO II, LLC Income Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
11.24%, 1/29/2030
|
|
37,600
|
|
|
20,876
|
|
|
21,820
|
|
|
1.5
|
%
|
|||
|
MidOcean Credit CLO III, LLC Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
2.27%, 7/21/2026
|
|
40,250
|
|
|
16,326
|
|
|
16,839
|
|
|
1.1
|
%
|
|||
|
MidOcean Credit CLO IV, LLC Income Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
8.92%, 4/15/2027
|
|
21,500
|
|
|
13,066
|
|
|
13,090
|
|
|
0.9
|
%
|
|||
|
NewStar Arlington Senior Loan Program LLC Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
23.70%, 4/25/2031
|
|
31,603
|
|
|
21,380
|
|
|
25,436
|
|
|
1.7
|
%
|
|||
|
NewStar Exeter Fund CLO - Equity (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
1.07%, 1/19/2027
|
|
31,575
|
|
|
11,621
|
|
|
11,071
|
|
|
0.7
|
%
|
|||
|
OFSI Fund VI, Ltd. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
5.19%, 3/20/2025
|
|
38,000
|
|
|
12,229
|
|
|
9,770
|
|
|
0.7
|
%
|
|||
|
Related Fee Agreements (a) (c) (s)
|
|
Diversified Investment Vehicles
|
|
|
|
13,841
|
|
|
5,908
|
|
|
3,499
|
|
|
0.2
|
%
|
|||
|
Silver Spring CLO, Ltd. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
3.91%, 10/16/2026
|
|
31,500
|
|
|
8,570
|
|
|
8,502
|
|
|
0.6
|
%
|
|||
|
WhiteHorse VIII, Ltd. CLO Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
5.61%, 5/1/2026
|
|
36,000
|
|
|
11,558
|
|
|
8,895
|
|
|
0.6
|
%
|
|||
|
Sub Total Collateralized Securities
|
|
|
|
|
|
|
|
$
|
165,274
|
|
|
$
|
161,934
|
|
|
10.9
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Equity/Other - 13.4% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Answers Corporation - Common Equity (c) (e) (p)
|
|
Technology
|
|
|
|
909
|
|
|
$
|
11,361
|
|
|
$
|
10,965
|
|
|
0.7
|
%
|
|
|
Avaya Holdings Corp. (e) (x)
|
|
Communications Equipment
|
|
|
|
611
|
|
|
5,309
|
|
|
7,489
|
|
|
0.5
|
%
|
|||
|
California Resources Development JV, LLC - Preferred Equity (c) (o) (u)
|
|
Metals & Mining
|
|
9.00%
|
|
26,717,000
|
|
|
24,049
|
|
|
24,952
|
|
|
1.7
|
%
|
|||
|
Capstone Nutrition - Common Stock (fka Integrity Nutraceuticals, Inc.) (c) (e) (o)
|
|
Food Products
|
|
|
|
6,023
|
|
|
1,630
|
|
|
—
|
|
|
—
|
%
|
|||
|
Capstone Nutrition - Common Stock (fka Integrity Nutraceuticals, Inc.) (c) (e) (o) (u)
|
|
Food Products
|
|
|
|
24,656
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
Danish CRJ LTD. - Common Equity (a) (c) (e) (p) (r)
|
|
Aerospace & Defense
|
|
|
|
10,000
|
|
|
1
|
|
|
460
|
|
|
—
|
%
|
|||
|
Evolution Research Group - Preferred Equity (c) (e)
|
|
Health Care Providers & Services
|
|
8.00%
|
|
500,000
|
|
|
500
|
|
|
909
|
|
|
0.1
|
%
|
|||
|
Greenwave Holdings, Inc. - Series C Preferred Stock Warrant (c) (e)
|
|
Internet Software & Services
|
|
Expire 8/16/2025
|
|
172,414
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
Kahala Ireland OpCo Designated Activity Company - Common Equity (a) (c) (e) (h) (o)
|
|
Aerospace & Defense
|
|
|
|
137
|
|
|
—
|
|
|
8,849
|
|
|
0.6
|
%
|
|||
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Kahala Ireland OpCo Designated Activity Company - Profit Participating Note (a) (c) (e) (h) (o)
|
|
Aerospace & Defense
|
|
|
|
3,250,000
|
|
|
2,851
|
|
|
3,250
|
|
|
0.2
|
%
|
|||
|
Kahala US OpCo LLC - Class A Preferred Units (c) (e) (k) (o)
|
|
Aerospace & Defense
|
|
13.00%
|
|
4,413,472
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
Mood Media Corporation - Warrants (c) (e)
|
|
Business Services
|
|
|
|
121,021
|
|
|
27
|
|
|
48
|
|
|
—
|
%
|
|||
|
New Star Metals Inc. - Warrants (c) (e)
|
|
Business Services
|
|
Expire 12/22/2036
|
|
100,216
|
|
|
151
|
|
|
279
|
|
|
—
|
%
|
|||
|
NexSteppe Inc. - Series C Preferred Stock Warrant (c) (e)
|
|
Chemicals
|
|
|
|
237,240
|
|
|
737
|
|
|
—
|
|
|
—
|
%
|
|||
|
NMFC Senior Loan Program I, LLC (a) (o)
|
|
Diversified Investment Vehicles
|
|
|
|
50,000
|
|
|
50,000
|
|
|
51,126
|
|
|
3.5
|
%
|
|||
|
Orchid Underwriters Agency, LLC - Preferred Shares (c) (e) (u)
|
|
Insurance Broker
|
|
|
|
5,000
|
|
|
113
|
|
|
773
|
|
|
0.1
|
%
|
|||
|
Orchid Underwriters Agency, LLC - Common Shares (c) (e) (u)
|
|
Insurance Broker
|
|
|
|
5,000
|
|
|
—
|
|
|
76
|
|
|
—
|
%
|
|||
|
Park Ave RE Holdings, LLC - Common Shares (c) (e) (o) (w)
|
|
Real Estate Management & Development
|
|
|
|
1,000
|
|
|
102
|
|
|
14,297
|
|
|
1.0
|
%
|
|||
|
Park Ave RE Holdings, LLC - Preferred Shares (c) (e) (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
|
|
|
|
$
|
9,952
|
|
|
9,952
|
|
|
10,167
|
|
|
0.7
|
%
|
||
|
South Grand MM CLO I, LLC (a) (f) (o)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
9,724
|
|
|
9,689
|
|
|
10,596
|
|
|
0.7
|
%
|
||
|
Squan Holding Corp. - Class A Common Stock (c) (e) (p)
|
|
Diversified Telecommunication Services
|
|
|
|
180,835
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
Squan Holding Corp. - Series A Preferred Stock (c) (e) (p)
|
|
Diversified Telecommunication Services
|
|
|
|
8,962
|
|
|
—
|
|
|
47
|
|
|
—
|
%
|
|||
|
Tax Defense Network, LLC - Common Equity (c) (e)
|
|
Diversified Consumer Services
|
|
|
|
106,346
|
|
|
425
|
|
|
—
|
|
|
—
|
%
|
|||
|
Tennenbaum Waterman Fund, L.P. (a)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
10,000
|
|
|
10,000
|
|
|
10,430
|
|
|
0.7
|
%
|
||
|
TCG BDC, Inc. - Common Stock (fka Carlyle GMS Finance, Inc.) (a) (x)
|
|
Diversified Investment Vehicles
|
|
|
|
404,899
|
|
|
5,841
|
|
|
5,293
|
|
|
0.4
|
%
|
|||
|
The SAVO Group, Ltd. - Warrants (c) (e)
|
|
IT Services
|
|
Expire 3/29/2023
|
|
138,000
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
THL Credit Greenway Fund II LLC (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
$
|
12,141
|
|
|
10,526
|
|
|
9,396
|
|
|
0.6
|
%
|
||
|
Twentyeighty, Inc. - Class A Common Equity (c) (e)
|
|
Media
|
|
|
|
54,586
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
TZ Holdings, Inc. - Warrants (fka Zimbra, Inc.) (c) (e)
|
|
Software
|
|
|
|
136,000
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
TZ Holdings, Inc. - Preferred Shares (fka Zimbra, Inc.) (c) (e)
|
|
Software
|
|
Expire 10/25/2023
|
|
1,000,000
|
|
|
10
|
|
|
179
|
|
|
—
|
%
|
|||
|
U.S. Auto - Series A Common Units (c) (e) (u)
|
|
Diversified Consumer Services
|
|
|
|
10,000
|
|
|
10
|
|
|
—
|
|
|
—
|
%
|
|||
|
U.S. Auto - Series A Preferred Units (c) (e) (u)
|
|
Diversified Consumer Services
|
|
|
|
490
|
|
|
490
|
|
|
532
|
|
|
—
|
%
|
|||
|
U.S Auto - Series C Preferred Equity Units (c) (e) (u)
|
|
Diversified Consumer Services
|
|
|
|
56
|
|
|
56
|
|
|
—
|
|
|
—
|
%
|
|||
|
March 31, 2018
(Unaudited)
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
World Business Lenders, LLC - Preferred Stock (c) (e)
|
|
Consumer Finance
|
|
|
|
922,669
|
|
|
3,750
|
|
|
3,759
|
|
|
0.3
|
%
|
|||
|
Sub Total Equity/Other
|
|
|
|
|
|
|
|
$
|
171,235
|
|
|
$
|
197,517
|
|
|
13.4
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
TOTAL INVESTMENTS - 178.1% (b)
|
|
|
|
|
|
|
|
$
|
2,691,500
|
|
|
$
|
2,626,852
|
|
|
178.1
|
%
|
||
|
(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 acquire 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 74.5% 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 $
1,475,064
as of
March 31, 2018
.
|
|
(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. Such investments are valued using significant unobservable inputs (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
March 31, 2018
.
|
|
(f)
|
The Company has various unfunded commitments to portfolio companies. The remaining amount of these unfunded commitments as of
March 31, 2018
are comprised of the following:
|
|
March 31, 2018
(Unaudited)
|
||||||||||||
|
Portfolio Company Name
|
|
Investment Type
|
|
Commitment Type
|
|
Original Commitment
|
|
Remaining Commitment
|
||||
|
AMI Entertainment Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
$
|
1,234
|
|
|
$
|
1,234
|
|
|
AqGen Ascensus Inc.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
1,283
|
||||
|
Black Mountain Sand, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
13,050
|
|
|
6,525
|
|
||
|
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
|
|
||
|
Corfin Industries LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
956
|
|
|
908
|
|
||
|
ERG Holding Company
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
263
|
|
|
75
|
|
||
|
ERG Holding Company
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
87
|
|
|
87
|
|
||
|
ICR Operations, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,753
|
|
|
2,588
|
|
||
|
Ideal Tridon Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,731
|
|
|
2,185
|
|
||
|
InMotion Entertainment Group, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,200
|
|
|
1,843
|
|
||
|
Lakeland Tours, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
464
|
|
|
464
|
|
||
|
Midwest Can Company, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
828
|
|
|
828
|
|
||
|
MMM Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
3,522
|
|
|
3,522
|
|
||
|
MMM Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,761
|
|
|
1,761
|
|
||
|
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 capital commitment
|
|
Equity capital commitment
|
|
10,763
|
|
|
538
|
|
||
|
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
6,579
|
|
|
6,579
|
|
||
|
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,316
|
|
|
658
|
|
||
|
South Grand MM CLO I, LLC
|
|
Equity capital commitment
|
|
Equity capital commitment
|
|
35,000
|
|
|
5,476
|
|
||
|
Subsea Global Solutions, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
963
|
|
|
963
|
|
||
|
Tillamook Country Smoker, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,696
|
|
|
1,887
|
|
||
|
Twenty Eighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
443
|
|
|
443
|
|
||
|
US Salt, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
1,297
|
|
|
43
|
|
||
|
USF S&H Holdco, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,616
|
|
|
1,616
|
|
||
|
Vetcor Professional Practices LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
3,656
|
|
|
2,852
|
|
||
|
Total
|
|
|
|
|
|
$
|
111,378
|
|
|
$
|
55,558
|
|
|
(g)
|
The investment is subject to a three year lock-up restriction on withdrawals. The lock-up expires on March 31, 2019.
|
|
(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.
|
|
March 31, 2018
(Unaudited)
|
|||||||||||||||
|
Portfolio Company
|
|
Investment Type
|
|
Cash
|
|
PIK
|
|
All-in Rate
|
|
PIK Earned for the three months ended March 31, 2018
|
|||||
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.)
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
14.27
|
%
|
|
14.27
|
%
|
|
$
|
—
|
|
|
Greenwave Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
10.00
|
%
|
|
3.00
|
%
|
|
13.00
|
%
|
|
87
|
|
|
|
Kahala Ireland OpCo Designated Activity Company
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
13.00
|
%
|
|
13.00
|
%
|
|
—
|
|
|
|
Lightsquared LP
|
|
Senior Secured First Lien Debt
|
|
10.78
|
%
|
|
—
|
%
|
|
10.78
|
%
|
|
290
|
|
|
|
MMM Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
8.37
|
%
|
|
—
|
%
|
|
8.37
|
%
|
|
—
|
|
|
|
New Star Metals, Inc.
|
|
Senior Secured First Lien Debt
|
|
11.80
|
%
|
|
—
|
%
|
|
11.80
|
%
|
|
—
|
|
|
|
NextSteppe Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
12.00
|
%
|
|
12.00
|
%
|
|
—
|
|
|
|
Park Ave RE Holdings, LLC
|
|
Subordinated Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
—
|
|
|
|
Steel City Media
|
|
Subordinated Debt
|
|
—
|
%
|
|
16.00
|
%
|
|
16.00
|
%
|
|
829
|
|
|
|
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
10.81
|
%
|
|
4.50
|
%
|
|
15.31
|
%
|
|
12
|
|
|
|
Twenty Eighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
4.00
|
%
|
|
4.00
|
%
|
|
8.00
|
%
|
|
65
|
|
|
|
Twenty Eighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
8.00
|
%
|
|
—
|
%
|
|
8.00
|
%
|
|
127
|
|
|
|
Twenty Eighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
0.25
|
%
|
|
8.75
|
%
|
|
9.00
|
%
|
|
—
|
|
|
|
Xplornet Communications, Inc.
|
|
Senior Secured First Lien Debt
|
|
6.30
|
%
|
|
—
|
%
|
|
6.30
|
%
|
|
—
|
|
|
|
Xplornet Communications, Inc.
|
|
Subordinated Debt
|
|
—
|
%
|
|
9.63
|
%
|
|
9.63
|
%
|
|
—
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
$
|
1,410
|
|
|||
|
(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. The Company classifies this investment as "controlled".
|
|
(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. The Company classifies this investment as "affiliated".
|
|
(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 five investments with a total fair value of $3.5 million that are classified as Affiliated Investments.
|
|
(t)
|
The investment is on non-accrual status as of
March 31, 2018
.
|
|
(u)
|
Investments are held in the taxable wholly-owned, consolidated subsidiary, 54
th
Street Equity Holdings, Inc.
|
|
(v)
|
The Collateralized Securities - subordinated notes are treated as equity investments and 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
March 31, 2018
. 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 March 31, 2018
|
|||||
|
|
Investments at
Fair Value
|
|
Percentage of
Total Portfolio
|
|||
|
Diversified Investment Vehicles
|
$
|
258,942
|
|
|
9.9
|
%
|
|
Business Services
|
202,152
|
|
|
7.7
|
|
|
|
Health Care
|
190,071
|
|
|
7.2
|
|
|
|
Hotels, Restaurants & Leisure
|
171,088
|
|
|
6.5
|
|
|
|
Aerospace & Defense
|
162,284
|
|
|
6.2
|
|
|
|
Media
|
150,243
|
|
|
5.7
|
|
|
|
Diversified Telecommunication Services
|
128,576
|
|
|
4.9
|
|
|
|
Diversified Consumer Services
|
125,786
|
|
|
4.8
|
|
|
|
Health Care Providers & Services
|
122,787
|
|
|
4.7
|
|
|
|
Commercial Services & Supplies
|
120,830
|
|
|
4.6
|
|
|
|
Technology
|
112,605
|
|
|
4.3
|
|
|
|
Energy Equipment & Services
|
89,208
|
|
|
3.4
|
|
|
|
Food Products
|
78,189
|
|
|
3.0
|
|
|
|
Real Estate Management & Development
|
75,134
|
|
|
2.9
|
|
|
|
Internet Software & Services
|
71,725
|
|
|
2.7
|
|
|
|
Chemicals
|
62,657
|
|
|
2.4
|
|
|
|
Metals & Mining
|
56,047
|
|
|
2.1
|
|
|
|
Communications Equipment
|
54,457
|
|
|
2.1
|
|
|
|
Professional Services
|
46,811
|
|
|
1.8
|
|
|
|
Software
|
38,166
|
|
|
1.5
|
|
|
|
Gaming/Lodging
|
33,884
|
|
|
1.3
|
|
|
|
Consumer Finance
|
32,100
|
|
|
1.2
|
|
|
|
Specialty Retail
|
31,292
|
|
|
1.2
|
|
|
|
Diversified Financial Services
|
31,195
|
|
|
1.2
|
|
|
|
Auto Components
|
28,865
|
|
|
1.1
|
|
|
|
Transportation Infrastructure
|
26,959
|
|
|
1.0
|
|
|
|
Life Sciences Tools & Services
|
25,751
|
|
|
1.0
|
|
|
|
Containers & Packaging
|
19,194
|
|
|
0.7
|
|
|
|
Insurance Broker
|
18,480
|
|
|
0.7
|
|
|
|
Automobiles
|
14,394
|
|
|
0.5
|
|
|
|
Industrials
|
13,610
|
|
|
0.5
|
|
|
|
Health Care Technology
|
12,729
|
|
|
0.5
|
|
|
|
Electronic Equipment, Instruments & Components
|
10,058
|
|
|
0.4
|
|
|
|
Textiles, Apparel & Luxury Goods
|
3,443
|
|
|
0.1
|
|
|
|
IT Services
|
3,374
|
|
|
0.1
|
|
|
|
Financial Services
|
2,917
|
|
|
0.1
|
|
|
|
Insurance
|
849
|
|
|
—
|
|
|
|
Total
|
$
|
2,626,852
|
|
|
100.0
|
%
|
|
December 31, 2017
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Senior Secured First Lien
Debt - 118.8% (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Abaco Systems Holding Corp. (c) (i)
|
|
Business Services
|
|
L+6.00% (7.35%), 12/7/2021
|
|
$
|
23,698
|
|
|
$
|
23,320
|
|
|
$
|
23,129
|
|
|
1.6
|
%
|
|
ABC Financial Intermediate, LLC (c) (j)
|
|
Media
|
|
L+4.25% (5.94%), 1/2/2025
|
|
7,739
|
|
|
7,700
|
|
|
7,700
|
|
|
0.5
|
%
|
|||
|
Ability Networks Inc. (c) (j)
|
|
Health Care Providers & Services
|
|
L+5.00% (6.35%), 12/13/2024
|
|
13,607
|
|
|
13,539
|
|
|
13,607
|
|
|
0.9
|
%
|
|||
|
Adams Publishing Group, LLC (c) (i)
|
|
Media
|
|
L+7.00% (8.69%), 11/3/2020
|
|
16,250
|
|
|
16,109
|
|
|
16,250
|
|
|
1.1
|
%
|
|||
|
Adams Publishing Group, LLC (c)
|
|
Media
|
|
L+7.00% (8.69%), 11/3/2020
|
|
4,432
|
|
|
4,432
|
|
|
4,432
|
|
|
0.3
|
%
|
|||
|
Aleris International, Inc. (x)
|
|
Metals & Mining
|
|
9.50%, 4/1/2021
|
|
2,882
|
|
|
3,046
|
|
|
3,044
|
|
|
0.2
|
%
|
|||
|
Alvogen Pharma US, Inc. (j)
|
|
Health Care
|
|
L+5.00% (6.57%), 4/2/2022
|
|
14,061
|
|
|
13,955
|
|
|
13,932
|
|
|
0.9
|
%
|
|||
|
AMI Entertainment Network, LLC (c) (f) (i)
|
|
Hotels, Restaurants & Leisure
|
|
L+6.00% (7.69%), 7/21/2022
|
|
14,632
|
|
|
14,365
|
|
|
14,368
|
|
|
1.0
|
%
|
|||
|
Amports, Inc. (c) (m)
|
|
Transportation Infrastructure
|
|
L+5.00% (6.69%), 5/19/2020
|
|
14,876
|
|
|
14,832
|
|
|
14,876
|
|
|
1.0
|
%
|
|||
|
Amteck, LLC (c) (f) (i)
|
|
Commercial Services & Supplies
|
|
L+7.50% (9.20%), 7/2/2020
|
|
21,688
|
|
|
21,499
|
|
|
21,579
|
|
|
1.4
|
%
|
|||
|
Answers Corporation (c) (p)
|
|
Technology
|
|
L+5.00% (6.57%), 4/15/2021
|
|
3,007
|
|
|
2,945
|
|
|
2,916
|
|
|
0.2
|
%
|
|||
|
AP Gaming I, LLC (i) (j)
|
|
Gaming/Lodging
|
|
L+5.50% (7.07%), 2/15/2024
|
|
33,592
|
|
|
33,524
|
|
|
33,823
|
|
|
2.3
|
%
|
|||
|
APCO Holdings (c) (i)
|
|
Diversified Consumer Services
|
|
L+6.00% (7.57%), 1/29/2022
|
|
3,666
|
|
|
3,590
|
|
|
3,593
|
|
|
0.2
|
%
|
|||
|
Applied Merchant Systems West Coast, Inc. (c) (m)
|
|
Diversified Financial Services
|
|
L+11.50% (12.84%), 10/26/2020
|
|
18,853
|
|
|
18,635
|
|
|
17,816
|
|
|
1.2
|
%
|
|||
|
Applied Merchant Systems West Coast, Inc. (c) (m)
|
|
Diversified Financial Services
|
|
L+11.50% (12.84%), 10/26/2020
|
|
6,500
|
|
|
6,425
|
|
|
6,143
|
|
|
0.4
|
%
|
|||
|
AqGen Ascensus Inc. (j)
|
|
Technology
|
|
L+3.50% (5.06%), 12/3/2022
|
|
19,637
|
|
|
19,637
|
|
|
19,694
|
|
|
1.3
|
%
|
|||
|
AqGen Ascensus Inc. (f)
|
|
Technology
|
|
L+3.50% (5.06%), 12/3/2022
|
|
3,333
|
|
|
3,325
|
|
|
3,348
|
|
|
0.2
|
%
|
|||
|
Avatar Purchaser, Inc. (c) (m)
|
|
Business Services
|
|
L+7.50% (8.99%), 11/17/2025
|
|
11,716
|
|
|
11,370
|
|
|
11,520
|
|
|
0.8
|
%
|
|||
|
Avaya Holdings Corp. (j)
|
|
Communications Equipment
|
|
L+4.75% (6.23%), 12/15/2024
|
|
26,108
|
|
|
25,848
|
|
|
25,662
|
|
|
1.7
|
%
|
|||
|
Basho Technologies, Inc. (c) (d) (l) (t)
|
|
Software
|
|
17.00%, 5/31/2018
|
|
6,645
|
|
|
6,485
|
|
|
—
|
|
|
—
|
%
|
|||
|
Basho Technologies, Inc. (c) (d) (l) (t)
|
|
Software
|
|
17.00%, 5/31/2018
|
|
2,550
|
|
|
2,550
|
|
|
—
|
|
|
—
|
%
|
|||
|
BCP Raptor, LLC (j)
|
|
Energy Equipment & Services
|
|
L+4.25% (5.73%), 6/24/2024
|
|
19,986
|
|
|
19,800
|
|
|
20,048
|
|
|
1.3
|
%
|
|||
|
BCP Renaissance, LLC (j)
|
|
Energy Equipment & Services
|
|
L+4.00% (5.38%), 10/31/2024
|
|
8,472
|
|
|
8,431
|
|
|
8,569
|
|
|
0.6
|
%
|
|||
|
BDS Solutions Group, LLC (c) (i) (m)
|
|
Business Services
|
|
L+8.75% (10.45%), 6/1/2021
|
|
33,042
|
|
|
32,531
|
|
|
33,042
|
|
|
2.2
|
%
|
|||
|
BDS Solutions Group, LLC (c)
|
|
Business Services
|
|
L+8.75% (10.45%), 6/1/2021
|
|
2,888
|
|
|
2,841
|
|
|
2,888
|
|
|
0.2
|
%
|
|||
|
Beaver-Visitec International Holdings, Inc. (c) (j)
|
|
Health Care
|
|
L+5.00% (6.69%), 8/21/2023
|
|
6,580
|
|
|
6,580
|
|
|
6,580
|
|
|
0.4
|
%
|
|||
|
Berner Food & Beverage LLC (c) (f) (i)
|
|
Food Products
|
|
L+7.00% (8.69%), 3/16/2022
|
|
18,853
|
|
|
18,536
|
|
|
18,476
|
|
|
1.2
|
%
|
|||
|
Black Mountain Sand, LLC (c) (f)
|
|
Energy Equipment & Services
|
|
L+9.00% (10.50%), 11/30/2021
|
|
13,050
|
|
|
12,859
|
|
|
12,854
|
|
|
0.9
|
%
|
|||
|
December 31, 2017
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Blount International, Inc. (j)
|
|
Commercial Services & Supplies
|
|
L+4.25% (5.61%), 4/12/2023
|
|
$
|
12,500
|
|
|
$
|
12,470
|
|
|
$
|
12,637
|
|
|
0.9
|
%
|
|
California Resources, Corp. (m)
|
|
Metals & Mining
|
|
L+10.38% (11.88%), 12/31/2022
|
|
12,259
|
|
|
12,014
|
|
|
12,198
|
|
|
0.8
|
%
|
|||
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) (c) (l) (o) (t)
|
|
Food Products
|
|
L+12.50% (13.88%), 4/28/2019
|
|
20,482
|
|
|
16,406
|
|
|
4,096
|
|
|
0.3
|
%
|
|||
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) (c) (l) (o) (t)
|
|
Food Products
|
|
L+12.50% (13.88%), 4/28/2019
|
|
47,336
|
|
|
33,647
|
|
|
9,467
|
|
|
0.6
|
%
|
|||
|
Catapult Learning, LLC (c) (i) (m)
|
|
Diversified Consumer Services
|
|
L+6.50% (7.88%), 7/16/2020
|
|
27,138
|
|
|
26,861
|
|
|
25,917
|
|
|
1.7
|
%
|
|||
|
CCW, LLC (c) (f) (i)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.63%), 3/21/2021
|
|
26,525
|
|
|
26,292
|
|
|
26,525
|
|
|
1.8
|
%
|
|||
|
Central Security Group, Inc. (c) (i) (j)
|
|
Commercial Services & Supplies
|
|
L+5.63% (7.19%), 10/6/2021
|
|
25,293
|
|
|
24,999
|
|
|
25,294
|
|
|
1.7
|
%
|
|||
|
Chicken Soup for the Soul Publishing, LLC (c)
|
|
Media
|
|
L+6.25% (7.61%), 1/8/2019
|
|
27,536
|
|
|
27,465
|
|
|
24,369
|
|
|
1.6
|
%
|
|||
|
Chloe Ox Parent, LLC (j)
|
|
Health Care Providers & Services
|
|
L+5.00% (6.64%), 12/23/2024
|
|
10,768
|
|
|
10,660
|
|
|
10,768
|
|
|
0.7
|
%
|
|||
|
Clover Technologies Group, LLC (j)
|
|
Commercial Services & Supplies
|
|
L+4.50% (6.07%), 5/8/2020
|
|
13,548
|
|
|
13,495
|
|
|
10,070
|
|
|
0.7
|
%
|
|||
|
Community Care Health Network, LLC (c) (j)
|
|
Health Care
|
|
L+5.50% (7.07%), 10/19/2021
|
|
2,376
|
|
|
2,384
|
|
|
2,377
|
|
|
0.2
|
%
|
|||
|
CONSOL Energy, Inc. (j)
|
|
Metals & Mining
|
|
L+6.00% (7.47%), 11/28/2022
|
|
3,240
|
|
|
3,176
|
|
|
3,275
|
|
|
0.2
|
%
|
|||
|
Contura Energy Inc. (j)
|
|
Energy Equipment & Services
|
|
L+5.00% (6.63%), 3/18/2024
|
|
7,491
|
|
|
7,425
|
|
|
7,379
|
|
|
0.5
|
%
|
|||
|
ConvergeOne Holdings Corp. (j)
|
|
Technology
|
|
L+4.75% (6.44%), 6/20/2024
|
|
16,475
|
|
|
16,323
|
|
|
16,489
|
|
|
1.1
|
%
|
|||
|
Cvent, Inc. (c) (j)
|
|
Internet Software & Services
|
|
L+3.75% (5.32%), 11/29/2024
|
|
16,436
|
|
|
16,333
|
|
|
16,436
|
|
|
1.1
|
%
|
|||
|
DigiCert, Inc (j)
|
|
Internet Software & Services
|
|
L+4.75% (6.13%), 10/31/2024
|
|
10,800
|
|
|
10,747
|
|
|
10,930
|
|
|
0.7
|
%
|
|||
|
Eagle Rx, LLC (c) (i)
|
|
Health Care Providers & Services
|
|
L+4.25% (5.61%), 8/15/2019
|
|
27,279
|
|
|
27,192
|
|
|
27,279
|
|
|
1.8
|
%
|
|||
|
Elo Touch Solutions, Inc (j)
|
|
Technology
|
|
L+6.00% (7.44%), 10/31/2023
|
|
3,781
|
|
|
3,744
|
|
|
3,772
|
|
|
0.3
|
%
|
|||
|
ERG Holding Company (c) (i) (m)
|
|
Health Care Providers & Services
|
|
L+6.75% (8.45%), 4/4/2019
|
|
34,099
|
|
|
33,846
|
|
|
33,587
|
|
|
2.3
|
%
|
|||
|
ERG Holding Company (c) (f)
|
|
Health Care Providers & Services
|
|
L+6.75% (8.45%), 4/4/2019
|
|
136
|
|
|
136
|
|
|
134
|
|
|
0.1
|
%
|
|||
|
Everi Payments, Inc. (j)
|
|
Hotels, Restaurants & Leisure
|
|
L+3.50% (4.98%), 5/9/2024
|
|
10,654
|
|
|
10,639
|
|
|
10,748
|
|
|
0.7
|
%
|
|||
|
Excelitas Technologies Corp. (j)
|
|
Electronic Equipment, Instruments & Components
|
|
L+3.50% (5.16%), 12/2/2024
|
|
10,000
|
|
|
9,975
|
|
|
10,066
|
|
|
0.7
|
%
|
|||
|
Genesys Telecommunications Laboratories, Inc. (j)
|
|
Diversified Telecommunication Services
|
|
L+3.75% (5.44%), 12/1/2023
|
|
24,751
|
|
|
24,435
|
|
|
24,874
|
|
|
1.7
|
%
|
|||
|
Greenwave Holdings, Inc. (c) (d) (l)
|
|
Internet Software & Services
|
|
13.00%, 7/8/2019
|
|
12,184
|
|
|
12,136
|
|
|
12,184
|
|
|
0.8
|
%
|
|||
|
GTCR Valor Companies, Inc. (j)
|
|
Internet Software & Services
|
|
L+4.25% (5.94%), 6/16/2023
|
|
9,975
|
|
|
9,952
|
|
|
10,079
|
|
|
0.7
|
%
|
|||
|
HC Group Holdings III, Inc. (j)
|
|
Health Care
|
|
L+5.00% (6.57%), 4/7/2022
|
|
14,781
|
|
|
14,567
|
|
|
14,911
|
|
|
1.0
|
%
|
|||
|
Hexion Inc. (x)
|
|
Chemicals
|
|
10.38%, 2/1/2022
|
|
920
|
|
|
920
|
|
|
853
|
|
|
0.1
|
%
|
|||
|
Ideal Tridon Holdings, Inc. (c) (m)
|
|
Commercial Services & Supplies
|
|
L+6.50% (7.74%), 7/31/2023
|
|
23,917
|
|
|
23,472
|
|
|
23,465
|
|
|
1.6
|
%
|
|||
|
December 31, 2017
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Ideal Tridon Holdings, Inc. (c) (f)
|
|
Commercial Services & Supplies
|
|
L+6.50% (7.74%), 7/31/2022
|
|
$
|
546
|
|
|
$
|
511
|
|
|
$
|
536
|
|
|
—
|
%
|
|
Indivior Finance S.A.R.L. (i)
|
|
Health Care
|
|
L+4.50% (6.11%), 12/18/2022
|
|
6,983
|
|
|
6,948
|
|
|
7,001
|
|
|
0.5
|
%
|
|||
|
InMotion Entertainment Group, LLC (c) (i)
|
|
Specialty Retail
|
|
L+7.25% (8.95%), 10/1/2021
|
|
13,343
|
|
|
13,299
|
|
|
13,343
|
|
|
0.9
|
%
|
|||
|
InMotion Entertainment Group, LLC (c) (f) (i)
|
|
Specialty Retail
|
|
L+7.75% (9.45%), 10/1/2021
|
|
327
|
|
|
327
|
|
|
327
|
|
|
—
|
%
|
|||
|
Intelsat S.A (m)
|
|
Diversified Telecommunication Services
|
|
L+4.50% (6.19%), 1/2/2024
|
|
665
|
|
|
665
|
|
|
672
|
|
|
—
|
%
|
|||
|
Intelsat S.A (m)
|
|
Diversified Telecommunication Services
|
|
L+4.50% (6.63%), 1/2/2024
|
|
2,211
|
|
|
2,211
|
|
|
2,231
|
|
|
0.1
|
%
|
|||
|
Internap Corporation (m)
|
|
Communications Equipment
|
|
L+7.00% (8.41%), 4/6/2022
|
|
8,208
|
|
|
8,102
|
|
|
8,280
|
|
|
0.6
|
%
|
|||
|
IPC Corp. (j)
|
|
Diversified Telecommunication Services
|
|
L+4.50% (5.89%), 8/6/2021
|
|
7,103
|
|
|
6,995
|
|
|
6,943
|
|
|
0.5
|
%
|
|||
|
Jackson Hewitt, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+7.00% (8.38%), 7/30/2020
|
|
6,515
|
|
|
6,448
|
|
|
6,409
|
|
|
0.4
|
%
|
|||
|
K2 Pure Solutions NoCal, L.P. (c) (i)
|
|
Chemicals
|
|
L+6.00% (7.57%), 2/19/2021
|
|
6,500
|
|
|
6,445
|
|
|
6,500
|
|
|
0.4
|
%
|
|||
|
Kahala Ireland OpCo Designated Activity Company (a) (c) (l) (o)
|
|
Aerospace & Defense
|
|
L+8.00% (13.00%), 12/23/2028
|
|
141,549
|
|
|
141,549
|
|
|
141,549
|
|
|
9.5
|
%
|
|||
|
Kissner Milling Co. Ltd. (c) (x)
|
|
Chemicals
|
|
8.38%, 12/1/2022
|
|
21,199
|
|
|
21,530
|
|
|
21,430
|
|
|
1.4
|
%
|
|||
|
Lakeland Tours, LLC (f)
|
|
Diversified Consumer Services
|
|
L+4.00% (5.59%), 12/15/2024
|
|
5,634
|
|
|
5,620
|
|
|
5,683
|
|
|
0.4
|
%
|
|||
|
LenderLive Services, LLC (c)
|
|
Business Services
|
|
L+12.00% (13.50%), 8/11/2020
|
|
10,000
|
|
|
9,869
|
|
|
9,650
|
|
|
0.7
|
%
|
|||
|
Lightsquared LP (l)
|
|
Diversified Telecommunications Services
|
|
L+8.75% (10.27%), 6/15/2020
|
|
11,315
|
|
|
10,598
|
|
|
10,481
|
|
|
0.7
|
%
|
|||
|
Lionbridge Technologies, Inc. (c) (i)
|
|
Business Services
|
|
L+5.50% (7.07%), 2/28/2024
|
|
13,764
|
|
|
13,703
|
|
|
13,702
|
|
|
0.9
|
%
|
|||
|
MCS Acquisition Corp. (c) (j)
|
|
Professional Services
|
|
L+4.75% (6.25%), 5/18/2024
|
|
14,297
|
|
|
14,239
|
|
|
14,297
|
|
|
1.0
|
%
|
|||
|
Medallion Midland Acquisition, L.P. (j)
|
|
Energy Equipment & Services
|
|
L+3.25% (4.82%), 11/13/2024
|
|
4,450
|
|
|
4,439
|
|
|
4,456
|
|
|
0.3
|
%
|
|||
|
Medical Depot Holdings, Inc. (c) (i)
|
|
Health Care
|
|
L+5.50% (7.19%), 1/3/2023
|
|
19,771
|
|
|
18,270
|
|
|
18,407
|
|
|
1.2
|
%
|
|||
|
Metal Services LLC (j)
|
|
Metals & Mining
|
|
L+7.50% (9.19%), 6/30/2019
|
|
10,806
|
|
|
10,726
|
|
|
10,846
|
|
|
0.7
|
%
|
|||
|
Michael Baker International, LLC (j)
|
|
Business Services
|
|
L+4.50% (5.94%), 11/21/2022
|
|
5,607
|
|
|
5,552
|
|
|
5,593
|
|
|
0.4
|
%
|
|||
|
Midwest Can Company, LLC (c) (f) (i)
|
|
Energy Equipment & Services
|
|
L+6.75% (8.32%), 1/26/2022
|
|
5,067
|
|
|
4,994
|
|
|
5,008
|
|
|
0.3
|
%
|
|||
|
MMM Holdings, LLC (c) (d) (j) (l)
|
|
Health Care
|
|
L+8.75% (10.32%), 6/28/2019
|
|
7,028
|
|
|
7,029
|
|
|
6,818
|
|
|
0.5
|
%
|
|||
|
Monitronics International, Inc. (j)
|
|
Diversified Consumer Services
|
|
L+5.50% (7.19%), 9/30/2022
|
|
2,963
|
|
|
2,950
|
|
|
2,933
|
|
|
0.2
|
%
|
|||
|
Montreign Operating Company, LLC (c) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (9.82%), 1/24/2023
|
|
27,161
|
|
|
26,732
|
|
|
27,473
|
|
|
1.8
|
%
|
|||
|
Mood Media Corporation (c) (m)
|
|
Business Services
|
|
L+7.25% (8.94%), 6/28/2022
|
|
13,912
|
|
|
13,638
|
|
|
13,608
|
|
|
0.9
|
%
|
|||
|
Motion Recruitment Partners, LLC (c) (f) (i)
|
|
Professional Services
|
|
L+6.00% (7.57%), 2/13/2020
|
|
17,194
|
|
|
17,021
|
|
|
17,194
|
|
|
1.2
|
%
|
|||
|
December 31, 2017
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
MSO of Puerto Rico, LLC (c) (d) (j) (l)
|
|
Health Care
|
|
L+8.75% (10.32%), 6/28/2019
|
|
$
|
5,110
|
|
|
$
|
5,110
|
|
|
$
|
4,956
|
|
|
0.3
|
%
|
|
Murray Energy Holdings Co. (j)
|
|
Energy Equipment & Services
|
|
L+7.25% (8.94%), 4/16/2020
|
|
13,408
|
|
|
12,929
|
|
|
11,778
|
|
|
0.8
|
%
|
|||
|
National Technical Systems, Inc. (c) (i)
|
|
Professional Services
|
|
L+6.25% (7.61%), 6/12/2021
|
|
16,469
|
|
|
16,376
|
|
|
15,481
|
|
|
1.0
|
%
|
|||
|
Navitas Midstream Midland Basin, LLC (j)
|
|
Energy Equipment & Services
|
|
L+4.50% (5.98%), 12/13/2024
|
|
7,969
|
|
|
7,929
|
|
|
7,969
|
|
|
0.5
|
%
|
|||
|
New Star Metals Inc. (c) (d) (l) (m)
|
|
Business Services
|
|
L+9.50% (11.00%), 12/22/2021
|
|
24,388
|
|
|
23,959
|
|
|
24,413
|
|
|
1.6
|
%
|
|||
|
NexSteppe Inc. (c) (f) (l) (t)
|
|
Chemicals
|
|
12.00%, 9/30/2018
|
|
1,533
|
|
|
1,500
|
|
|
—
|
|
|
—
|
%
|
|||
|
NexSteppe Inc. (c) (l) (t)
|
|
Chemicals
|
|
12.00%, 9/30/2018
|
|
11,998
|
|
|
10,453
|
|
|
—
|
|
|
—
|
%
|
|||
|
Noosa Acquirer, Inc. (c) (i) (m)
|
|
Food Products
|
|
L+5.25% (6.94%), 11/21/2020
|
|
25,000
|
|
|
24,819
|
|
|
25,000
|
|
|
1.7
|
%
|
|||
|
NTM Acquisition Corp. (c) (i)
|
|
Media
|
|
L+6.25% (7.94%), 6/7/2022
|
|
18,681
|
|
|
18,490
|
|
|
18,587
|
|
|
1.2
|
%
|
|||
|
Office Depot, Inc. (j)
|
|
Specialty Retail
|
|
L+7.00% (8.41%), 11/8/2022
|
|
9,130
|
|
|
8,949
|
|
|
9,153
|
|
|
0.6
|
%
|
|||
|
Optiv, Inc. (j)
|
|
Business Services
|
|
L+3.25% (4.63%), 2/1/2024
|
|
4,455
|
|
|
4,229
|
|
|
4,160
|
|
|
0.3
|
%
|
|||
|
Orchid Underwriters Agency, LLC (c) (f) (i)
|
|
Insurance Broker
|
|
L+5.00% (6.31%), 3/17/2022
|
|
18,480
|
|
|
18,325
|
|
|
18,480
|
|
|
1.2
|
%
|
|||
|
ORG Chemical Holdings, LLC (c) (i) (m)
|
|
Chemicals
|
|
L+5.75% (7.44%), 6/30/2022
|
|
27,822
|
|
|
27,322
|
|
|
27,338
|
|
|
1.8
|
%
|
|||
|
ORG GC Holdings, LLC (c) (i) m)
|
|
Business Services
|
|
L+6.75% (8.08%), 7/31/2022
|
|
25,550
|
|
|
25,199
|
|
|
25,266
|
|
|
1.7
|
%
|
|||
|
Peabody Energy Corp. (j)
|
|
Metals & Mining
|
|
L+3.50% (5.07%), 3/31/2022
|
|
2,608
|
|
|
2,602
|
|
|
2,641
|
|
|
0.2
|
%
|
|||
|
PeopLease Holdings, LLC (c) (i)
|
|
Commercial Services & Supplies
|
|
L+9.00% (10.70%), 2/26/2021
|
|
20,000
|
|
|
19,872
|
|
|
15,000
|
|
|
1.0
|
%
|
|||
|
PetVet Care Centers, LLC (c) (i)
|
|
Business Services
|
|
L+6.00% (7.69%), 6/8/2023
|
|
19,454
|
|
|
19,296
|
|
|
19,386
|
|
|
1.3
|
%
|
|||
|
PetVet Care Centers, LLC (c) (f)
|
|
Business Services
|
|
L+6.00% (7.35%), 6/8/2023
|
|
4,425
|
|
|
4,425
|
|
|
4,409
|
|
|
0.3
|
%
|
|||
|
PetVet Care Centers, LLC (c) (f)
|
|
Business Services
|
|
L+6.00% (9.50%), 6/8/2023
|
|
1,676
|
|
|
1,676
|
|
|
1,676
|
|
|
0.1
|
%
|
|||
|
PGX Holdings, Inc. (c) (j)
|
|
Transportation Infrastructure
|
|
L+5.25% (6.82%), 9/29/2020
|
|
12,547
|
|
|
12,500
|
|
|
12,547
|
|
|
0.8
|
%
|
|||
|
Premier Dental Services, Inc. (i) (j)
|
|
Health Care
|
|
L+5.25% (6.82%), 6/30/2023
|
|
33,018
|
|
|
32,764
|
|
|
33,162
|
|
|
2.2
|
%
|
|||
|
Premier Global Services, Inc. (j)
|
|
Diversified Telecommunication Services
|
|
L+6.50% (7.83%), 12/8/2021
|
|
9,357
|
|
|
9,093
|
|
|
9,182
|
|
|
0.6
|
%
|
|||
|
Pre-Paid Legal Services, Inc. (c) (j)
|
|
Diversified Consumer Services
|
|
L+5.25% (6.82%), 7/1/2019
|
|
12,010
|
|
|
12,026
|
|
|
12,010
|
|
|
0.8
|
%
|
|||
|
Pride Plating, Inc. (c) (i)
|
|
Aerospace & Defense
|
|
L+5.50% (7.19%), 6/13/2019
|
|
8,376
|
|
|
8,351
|
|
|
8,293
|
|
|
0.6
|
%
|
|||
|
PSKW, LLC (c) (i)
|
|
Health Care Providers & Services
|
|
L+4.25% (5.94%), 11/25/2021
|
|
1,569
|
|
|
1,559
|
|
|
1,569
|
|
|
0.1
|
%
|
|||
|
PSKW, LLC (c) (m)
|
|
Health Care Providers & Services
|
|
L+8.26% (9.95%), 11/25/2021
|
|
17,750
|
|
|
17,518
|
|
|
17,750
|
|
|
1.2
|
%
|
|||
|
PSKW, LLC (c) (m)
|
|
Health Care Providers & Services
|
|
L+8.26% (9.95%), 11/25/2021
|
|
1,972
|
|
|
1,934
|
|
|
1,972
|
|
|
0.1
|
%
|
|||
|
PT Network, LLC (c) (f) (i)
|
|
Health Care
|
|
L+5.50% (6.86%), 11/30/2021
|
|
16,935
|
|
|
16,802
|
|
|
16,931
|
|
|
1.1
|
%
|
|||
|
Pure Barre, LLC (c) (i) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.57%), 6/11/2020
|
|
25,698
|
|
|
25,478
|
|
|
25,441
|
|
|
1.7
|
%
|
|||
|
December 31, 2017
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Pure Barre, LLC (c) (f)
|
|
Hotels, Restaurants & Leisure
|
|
L+7.00% (8.57%), 6/11/2020
|
|
$
|
500
|
|
|
$
|
500
|
|
|
$
|
495
|
|
|
—
|
%
|
|
Resco Products, Inc. (c) (i)
|
|
Metals & Mining
|
|
L+6.25% (7.82%), 3/7/2020
|
|
10,000
|
|
|
10,000
|
|
|
9,750
|
|
|
0.7
|
%
|
|||
|
Sage Automotive Holdings, Inc. (j)
|
|
Auto Components
|
|
L+5.00% (6.57%), 11/8/2022
|
|
18,461
|
|
|
18,321
|
|
|
18,576
|
|
|
1.2
|
%
|
|||
|
SHO Holding II Corporation (c) (j)
|
|
Specialty Retail
|
|
L+5.00% (6.42%), 10/27/2022
|
|
9,770
|
|
|
9,702
|
|
|
9,379
|
|
|
0.6
|
%
|
|||
|
Skillsoft Corp. (j)
|
|
Technology
|
|
L+4.75% (6.32%), 4/28/2021
|
|
12,829
|
|
|
12,158
|
|
|
12,325
|
|
|
0.8
|
%
|
|||
|
Squan Holding Corp. (c) (p)
|
|
Diversified Telecommunication Services
|
|
L+4.50% (6.20%), 10/10/2019
|
|
17,052
|
|
|
14,680
|
|
|
13,642
|
|
|
0.9
|
%
|
|||
|
SSH Group Holdings, Inc. (c) (i)
|
|
Diversified Consumer Services
|
|
L+5.00% (6.69%), 10/2/2024
|
|
6,088
|
|
|
6,029
|
|
|
6,027
|
|
|
0.4
|
%
|
|||
|
SunGard Availability Services Capital, Inc. (c) (j)
|
|
IT Services
|
|
L+10.00% (11.56%), 3/31/2019
|
|
6,860
|
|
|
6,842
|
|
|
6,688
|
|
|
0.5
|
%
|
|||
|
Tax Defense Network, LLC (c) (l) (t)
|
|
Diversified Consumer Services
|
|
L+13.00% (14.70%), 8/28/2019
|
|
29,670
|
|
|
26,532
|
|
|
7,477
|
|
|
0.5
|
%
|
|||
|
Thoughtworks, Inc. (j)
|
|
Business Services
|
|
L+4.50% (6.07%), 10/12/2024
|
|
4,420
|
|
|
4,409
|
|
|
4,420
|
|
|
0.3
|
%
|
|||
|
Tillamook Country Smoker, LLC (c) (f) (i)
|
|
Food Products
|
|
L+5.75% (7.19%), 5/19/2022
|
|
10,244
|
|
|
10,110
|
|
|
10,111
|
|
|
0.7
|
%
|
|||
|
Traverse Midstream Partners, LLC (j)
|
|
Energy Equipment & Services
|
|
L+4.00% (5.85%), 9/27/2024
|
|
6,352
|
|
|
6,321
|
|
|
6,435
|
|
|
0.4
|
%
|
|||
|
Trilogy International Partners, LLC (x)
|
|
Diversified Telecommunication Services
|
|
8.88%, 5/1/2022
|
|
14,875
|
|
|
14,810
|
|
|
15,247
|
|
|
1.0
|
%
|
|||
|
Trojan Battery Company, LLC (c) (j)
|
|
Auto Components
|
|
L+4.75% (6.32%), 6/12/2021
|
|
10,478
|
|
|
10,425
|
|
|
10,399
|
|
|
0.7
|
%
|
|||
|
Turning Tech LLC (c) (i)
|
|
Software
|
|
L+10.75% (12.45%), 6/30/2020
|
|
23,476
|
|
|
23,271
|
|
|
20,542
|
|
|
1.4
|
%
|
|||
|
Twenty Eighty, Inc. (c) (f) (l) (p)
|
|
Media
|
|
8.00%, 3/31/2020
|
|
6,291
|
|
|
4,535
|
|
|
4,719
|
|
|
0.3
|
%
|
|||
|
Twenty Eighty, Inc. (c) (f) (l) (p)
|
|
Media
|
|
L+8.00% (9.42%), 3/31/2020
|
|
2,911
|
|
|
2,426
|
|
|
2,853
|
|
|
0.2
|
%
|
|||
|
Twenty Eighty, Inc. (c) (f) (l) (p)
|
|
Media
|
|
9.00%, 3/31/2020
|
|
5,753
|
|
|
4,164
|
|
|
3,739
|
|
|
0.3
|
%
|
|||
|
United Central Industrial Supply Company, LLC (c) (i) (j)
|
|
Commercial Services & Supplies
|
|
L+7.25% (8.82%), 10/9/2018
|
|
8,504
|
|
|
8,483
|
|
|
7,943
|
|
|
0.5
|
%
|
|||
|
US Salt, LLC (c) (f) (i) (m)
|
|
Food Products
|
|
L+4.75% (6.11%), 12/1/2023
|
|
5,189
|
|
|
5,137
|
|
|
5,137
|
|
|
0.3
|
%
|
|||
|
VCVH Holding Corp. (c) (i) (j)
|
|
Health Care
|
|
L+5.00% (6.70%), 6/1/2023
|
|
22,875
|
|
|
22,801
|
|
|
23,081
|
|
|
1.5
|
%
|
|||
|
Veritas US Inc. (j)
|
|
Technology
|
|
L+4.50% (6.19%), 1/27/2023
|
|
15,018
|
|
|
15,061
|
|
|
15,044
|
|
|
1.0
|
%
|
|||
|
VetCor Professional Practices LLC (c) (f) (i)
|
|
Diversified Consumer Services
|
|
L+6.00% (7.69%), 4/20/2021
|
|
4,909
|
|
|
4,877
|
|
|
4,859
|
|
|
0.3
|
%
|
|||
|
VetCor Professional Practices LLC (c)
|
|
Diversified Consumer Services
|
|
L+6.00% (7.69%), 4/20/2021
|
|
2,569
|
|
|
2,569
|
|
|
2,543
|
|
|
0.2
|
%
|
|||
|
VetCor Professional Practices LLC (c) (i)
|
|
Diversified Consumer Services
|
|
L+6.00% (7.69%), 4/20/2021
|
|
9,750
|
|
|
9,696
|
|
|
9,653
|
|
|
0.7
|
%
|
|||
|
Von Drehle Corporation (c) (i) (m)
|
|
Life Sciences Tools & Services
|
|
L+7.50% (9.19%), 3/6/2023
|
|
26,549
|
|
|
26,167
|
|
|
26,220
|
|
|
1.8
|
%
|
|||
|
Xplornet Communications, Inc. (a) (j)
|
|
Diversified Telecommunication Services
|
|
L+4.75% (6.44%), 9/9/2021
|
|
13,127
|
|
|
13,051
|
|
|
13,242
|
|
|
0.9
|
%
|
|||
|
Sub Total Senior Secured First Lien Debt
|
|
|
|
|
|
|
|
$
|
1,865,392
|
|
|
$
|
1,776,534
|
|
|
118.8
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
December 31, 2017
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Senior Secured Second Lien Debt - 16.0% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Anchor Glass Container Corporation (c) (m)
|
|
Containers & Packaging
|
|
L+7.75% (9.18%), 12/7/2024
|
|
$
|
20,000
|
|
|
$
|
19,826
|
|
|
$
|
20,060
|
|
|
1.3
|
%
|
|
Answers Corporation (c) (p)
|
|
Technology
|
|
L+7.90% (9.00%), 9/15/2021
|
|
4,675
|
|
|
4,088
|
|
|
4,371
|
|
|
0.3
|
%
|
|||
|
Astro AB Merger Sub, Inc. (m)
|
|
Diversified Financial Services
|
|
L+7.50% (8.88%), 4/30/2023
|
|
7,758
|
|
|
7,758
|
|
|
7,777
|
|
|
0.5
|
%
|
|||
|
Boston Market Corporation (c) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (9.73%), 12/16/2018
|
|
24,101
|
|
|
24,026
|
|
|
23,860
|
|
|
1.6
|
%
|
|||
|
BrandMuscle Holdings Inc. (c) (m)
|
|
Internet Software & Services
|
|
L+8.50% (9.84%), 6/1/2022
|
|
24,500
|
|
|
24,166
|
|
|
24,500
|
|
|
1.6
|
%
|
|||
|
Cayan Holdings (c) (m)
|
|
IT Services
|
|
L+8.50% (10.18%), 3/24/2022
|
|
20,000
|
|
|
19,673
|
|
|
20,000
|
|
|
1.3
|
%
|
|||
|
CDS U.S. Intermediate Holdings, Inc. (c) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+8.25% (9.94%), 7/8/2023
|
|
7,927
|
|
|
7,809
|
|
|
7,828
|
|
|
0.5
|
%
|
|||
|
CIG Financial, LLC (a) (c) (m)
|
|
Consumer Finance
|
|
10.50%, 6/30/2019
|
|
9,000
|
|
|
8,973
|
|
|
8,550
|
|
|
0.6
|
%
|
|||
|
CIG Financial, LLC (a) (c) (f)
|
|
Consumer Finance
|
|
10.50%, 6/30/2019
|
|
1,000
|
|
|
1,000
|
|
|
950
|
|
|
0.1
|
%
|
|||
|
CREDITCORP (x)
|
|
Consumer Finance
|
|
12.00%, 7/15/2018
|
|
13,250
|
|
|
13,238
|
|
|
11,925
|
|
|
0.8
|
%
|
|||
|
Epic Health Services, Inc. (c) (m)
|
|
Health Care Providers & Services
|
|
L+8.00% (9.57%), 3/17/2025
|
|
15,000
|
|
|
14,796
|
|
|
14,531
|
|
|
1.0
|
%
|
|||
|
Hertz Corp. (x)
|
|
Automobiles
|
|
7.63%, 6/1/2022
|
|
14,194
|
|
|
14,194
|
|
|
14,930
|
|
|
1.0
|
%
|
|||
|
PI US Holdco III Limited (c) (m)
|
|
Consumer Finance
|
|
L+7.25% (8.92%), 12/20/2025
|
|
6,696
|
|
|
6,629
|
|
|
6,629
|
|
|
0.4
|
%
|
|||
|
Recess Holdings, Inc. (c) (m)
|
|
Hotels, Restaurants & Leisure
|
|
L+3.75% (5.25%), 9/29/2025
|
|
13,008
|
|
|
12,816
|
|
|
12,813
|
|
|
0.9
|
%
|
|||
|
Rx30 HoldCo, Inc. (c) (m)
|
|
Health Care Technology
|
|
L+9.00% (10.35%), 6/15/2022
|
|
11,500
|
|
|
11,353
|
|
|
11,500
|
|
|
0.8
|
%
|
|||
|
Rx30 HoldCo, Inc. (c) (m)
|
|
Health Care Technology
|
|
L+9.00% (10.50%), 6/15/2022
|
|
1,229
|
|
|
1,204
|
|
|
1,229
|
|
|
0.1
|
%
|
|||
|
TierPoint, LLC (c) (m)
|
|
Technology
|
|
L+7.25% (8.82%), 5/5/2025
|
|
5,334
|
|
|
5,285
|
|
|
5,281
|
|
|
0.4
|
%
|
|||
|
U.S. Auto (c) (m)
|
|
Diversified Consumer Services
|
|
L+11.75% (13.12%), 6/8/2020
|
|
30,000
|
|
|
29,743
|
|
|
29,100
|
|
|
2.0
|
%
|
|||
|
US Salt, LLC (c) (m)
|
|
Food Products
|
|
L+8.75% (10.18%), 12/1/2024
|
|
12,872
|
|
|
12,681
|
|
|
12,679
|
|
|
0.8
|
%
|
|||
|
Sub Total Senior Secured Second Lien Debt
|
|
|
|
|
|
|
|
$
|
239,258
|
|
|
$
|
238,513
|
|
|
16.0
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Subordinated Debt - 6.3% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
BMC Software Finance, Inc. (x)
|
|
Software
|
|
8.13%, 7/15/2021
|
|
$
|
8,461
|
|
|
$
|
8,422
|
|
|
$
|
8,482
|
|
|
0.6
|
%
|
|
Gold, Inc. (c) (m)
|
|
Textiles, Apparel & Luxury Goods
|
|
10.00%, 6/30/2019
|
|
3,742
|
|
|
3,670
|
|
|
3,312
|
|
|
0.2
|
%
|
|||
|
Frontier Communications (x)
|
|
Diversified Telecommunication Services
|
|
8.13%, 10/1/2018
|
|
5,500
|
|
|
5,494
|
|
|
5,479
|
|
|
0.4
|
%
|
|||
|
Frontier Communications (x)
|
|
Diversified Telecommunication Services
|
|
8.50%, 4/15/2020
|
|
10,000
|
|
|
9,143
|
|
|
8,300
|
|
|
0.5
|
%
|
|||
|
Park Ave RE Holdings, LLC (c) (d) (l) (o)
|
|
Real Estate Management & Development
|
|
L+8.00% (13.00%), 12/31/2021
|
|
37,192
|
|
|
37,192
|
|
|
37,192
|
|
|
2.5
|
%
|
|||
|
Steel City Media (c) (l)
|
|
Media
|
|
16.00%, 3/29/2020
|
|
23,661
|
|
|
23,461
|
|
|
20,585
|
|
|
1.4
|
%
|
|||
|
Xplornet Communications, Inc. (a) (l) (x)
|
|
Diversified Telecommunication Services
|
|
10.63%, 6/1/2022
|
|
10,534
|
|
|
10,534
|
|
|
10,989
|
|
|
0.7
|
%
|
|||
|
Sub Total Subordinated Debt
|
|
|
|
|
|
|
|
$
|
97,916
|
|
|
$
|
94,339
|
|
|
6.3
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
December 31, 2017
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Collateralized Securities - 10.7% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Collateralized Securities - Debt Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
NewStar Exeter Fund CLO - Debt (a) (c) (p)
|
|
Diversified Investment Vehicles
|
|
L+7.50% (8.86%), 1/19/2027
|
|
$
|
10,728
|
|
|
$
|
9,262
|
|
|
$
|
8,660
|
|
|
0.6
|
%
|
|
Collateralized Securities - Equity Investment
(n)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
B&M CLO 2014-1, LTD. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 4/16/2026
|
|
$
|
40,250
|
|
|
$
|
15,385
|
|
|
$
|
12,804
|
|
|
0.8
|
%
|
|
CVP Cascade CLO, LTD. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 1/16/2026
|
|
31,000
|
|
|
7,618
|
|
|
4,121
|
|
|
0.3
|
%
|
|||
|
Figueroa CLO 2014-1, LTD. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 1/15/2027
|
|
35,057
|
|
|
16,421
|
|
|
12,508
|
|
|
0.8
|
%
|
|||
|
MidOcean Credit CLO II, LLC Income Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
15.75%, 1/29/2025
|
|
37,600
|
|
|
20,876
|
|
|
20,651
|
|
|
1.4
|
%
|
|||
|
MidOcean Credit CLO III, LLC Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
1.31%, 7/21/2026
|
|
40,250
|
|
|
20,323
|
|
|
17,508
|
|
|
1.2
|
%
|
|||
|
MidOcean Credit CLO IV, LLC Income Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
1.44%, 4/15/2027
|
|
21,500
|
|
|
13,289
|
|
|
12,212
|
|
|
0.8
|
%
|
|||
|
NewStar Arlington Senior Loan Program LLC Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
12.62%, 7/25/2025
|
|
31,603
|
|
|
21,849
|
|
|
25,439
|
|
|
1.7
|
%
|
|||
|
NewStar Exeter Fund CLO - Equity (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
3.45%, 1/19/2027
|
|
31,575
|
|
|
19,471
|
|
|
13,089
|
|
|
0.9
|
%
|
|||
|
OFSI Fund VI, Ltd. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 3/20/2025
|
|
38,000
|
|
|
14,006
|
|
|
10,162
|
|
|
0.7
|
%
|
|||
|
Related Fee Agreements (a) (c) (s)
|
|
Diversified Investment Vehicles
|
|
|
|
|
|
6,959
|
|
|
3,917
|
|
|
0.2
|
%
|
||||
|
Silver Spring CLO, Ltd. Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 10/16/2026
|
|
31,500
|
|
|
15,123
|
|
|
10,363
|
|
|
0.7
|
%
|
|||
|
WhiteHorse VIII, Ltd. CLO Subordinated Notes (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
10.03%, 5/1/2026
|
|
36,000
|
|
|
12,947
|
|
|
8,761
|
|
|
0.6
|
%
|
|||
|
Sub Total Collateralized Securities
|
|
|
|
|
|
|
|
$
|
193,529
|
|
|
$
|
160,195
|
|
|
10.7
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Equity/Other - 15.7% (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Answers Corporation - Common Equity (c) (e) (p)
|
|
Technology
|
|
|
|
909
|
|
|
$
|
11,361
|
|
|
$
|
14,231
|
|
|
1.0
|
%
|
|
|
Avaya Holdings Corp. (e) (x)
|
|
Communications Equipment
|
|
|
|
611
|
|
|
9,696
|
|
|
10,716
|
|
|
0.7
|
%
|
|||
|
Basho Technologies, Inc. - Series G Senior Participating Preferred Stock Warrant (c) (e)
|
|
Software
|
|
Expire 3/9/2025
|
|
306,122
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
Basho Technologies, Inc. - Series G Senior Preferred Stock (c) (e)
|
|
Software
|
|
|
|
2,040,816
|
|
|
2,000
|
|
|
—
|
|
|
—
|
%
|
|||
|
California Resources Development JV, LLC - Preferred Equity (c) (u)
|
|
Metals & Mining
|
|
9.00%
|
|
26,717,000
|
|
|
26,183
|
|
|
26,984
|
|
|
1.8
|
%
|
|||
|
Capstone Nutrition - Common Stock (fka Integrity Nutraceuticals, Inc.) (c) (e) (o)
|
|
Food Products
|
|
|
|
6,023
|
|
|
1,630
|
|
|
—
|
|
|
—
|
%
|
|||
|
Capstone Nutrition - Class B and C Common Stock (fka Integrity Nutraceuticals, Inc.) (c) (e) (o) (u)
|
|
Food Products
|
|
|
|
24,656
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
Danish CRJ LTD. - Common Equity (a) (c) (e) (p) (r)
|
|
Aerospace & Defense
|
|
|
|
10,000
|
|
|
1
|
|
|
605
|
|
|
—
|
%
|
|||
|
Evolution Research Group - Preferred Equity (c) (e)
|
|
Health Care Providers & Services
|
|
8.00%
|
|
500,000
|
|
|
500
|
|
|
535
|
|
|
—
|
%
|
|||
|
December 31, 2017
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
Greenwave Holdings, Inc. - Series C Preferred Stock Warrant (c) (e)
|
|
Internet Software & Services
|
|
Expire 8/16/2025
|
|
172,414
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
Kahala Ireland OpCo Designated Activity Company - Common Equity (a) (c) (e) (h) (o)
|
|
Aerospace & Defense
|
|
|
|
137
|
|
|
—
|
|
|
11,709
|
|
|
0.8
|
%
|
|||
|
Kahala Ireland OpCo Designated Activity Company - Profit Participating Note (a) (c) (e) (h) (o)
|
|
Aerospace & Defense
|
|
|
|
3,250,000
|
|
|
2,851
|
|
|
3,250
|
|
|
0.2
|
%
|
|||
|
Kahala US OpCo LLC - Class A Preferred Units (c) (e) (k) (o)
|
|
Aerospace & Defense
|
|
13.00%
|
|
4,413,472
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
Mood Media Corporation - Warrants (c) (e)
|
|
Business Services
|
|
|
|
121,021
|
|
|
27
|
|
|
47
|
|
|
—
|
%
|
|||
|
New Star Metals Inc. - Warrants (c) (e)
|
|
Business Services
|
|
Expire 12/22/2036
|
|
100,216
|
|
|
151
|
|
|
272
|
|
|
—
|
%
|
|||
|
NexSteppe Inc. - Series C Preferred Stock Warrant (c) (e)
|
|
Chemicals
|
|
|
|
237,240
|
|
|
737
|
|
|
—
|
|
|
—
|
%
|
|||
|
NMFC Senior Loan Program I, LLC (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
50,000
|
|
|
50,000
|
|
|
50,805
|
|
|
3.4
|
%
|
|||
|
Orchid Underwriters Agency, LLC - Preferred Shares (c) (e) (u)
|
|
Insurance Broker
|
|
|
|
5,000
|
|
|
113
|
|
|
616
|
|
|
—
|
%
|
|||
|
Orchid Underwriters Agency, LLC - Common Shares (c) (e) (u)
|
|
Insurance Broker
|
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
Park Ave RE Holdings, LLC - Common Shares (c) (e) (o) (w)
|
|
Real Estate Management & Development
|
|
|
|
1,000
|
|
|
—
|
|
|
12,678
|
|
|
0.8
|
%
|
|||
|
Park Ave RE Holdings, LLC - Preferred Shares (c) (e) (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
|
|
|
|
9,952
|
|
|
9,952
|
|
|
10,136
|
|
|
0.7
|
%
|
|||
|
South Grand MM CLO I, LLC (a) (f) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
29,524
|
|
|
29,095
|
|
|
28,904
|
|
|
2.0
|
%
|
|||
|
Squan Holding Corp. - Class A Common Stock (c) (e) (p)
|
|
Diversified Telecommunication Services
|
|
|
|
180,835
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
Squan Holding Corp. - Series A Preferred Stock (c) (e) (p)
|
|
Diversified Telecommunication Services
|
|
|
|
8,962
|
|
|
—
|
|
|
60
|
|
|
—
|
%
|
|||
|
Tax Defense Network, LLC - Common Equity (c) (e)
|
|
Diversified Consumer Services
|
|
|
|
106,346
|
|
|
425
|
|
|
—
|
|
|
—
|
%
|
|||
|
Tennenbaum Waterman Fund, L.P. (a)
|
|
Diversified Investment Vehicles
|
|
|
|
10,000
|
|
|
10,000
|
|
|
10,427
|
|
|
0.7
|
%
|
|||
|
TCG BDC, Inc. - Common Stock (fka Carlyle GMS Finance, Inc.) (a) (x)
|
|
Diversified Investment Vehicles
|
|
|
|
404,899
|
|
|
7,765
|
|
|
7,843
|
|
|
0.5
|
%
|
|||
|
The SAVO Group, Ltd. - Warrants (c) (e)
|
|
Internet Software & Services
|
|
Expire 3/23/2023
|
|
138,000
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
THL Credit Greenway Fund II LLC (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
12,141
|
|
|
12,141
|
|
|
11,373
|
|
|
0.9
|
%
|
|||
|
Twentyeighty, Inc. - Class A Common Equity (c) (e)
|
|
Media
|
|
|
|
54,586
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
TZ Holdings, Inc. - Warrants (fka Zimbra, Inc.) (c) (e)
|
|
Software
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
|
TZ Holdings, Inc. - Preferred Shares (fka Zimbra, Inc.) (c) (e)
|
|
Software
|
|
|
|
1,000,000
|
|
|
10
|
|
|
179
|
|
|
—
|
%
|
|||
|
U.S. Auto - Series A Common Units (c) (e) (u)
|
|
Diversified Consumer Services
|
|
|
|
10,000
|
|
|
10
|
|
|
—
|
|
|
—
|
%
|
|||
|
U.S. Auto - Series A Preferred Units (c) (e) (u)
|
|
Diversified Consumer Services
|
|
|
|
490
|
|
|
490
|
|
|
513
|
|
|
—
|
%
|
|||
|
December 31, 2017
|
|||||||||||||||||||
|
Portfolio Company (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
World Business Lenders, LLC - Preferred Stock (c) (e)
|
|
Consumer Finance
|
|
|
|
922,669
|
|
|
$
|
3,750
|
|
|
$
|
3,759
|
|
|
0.3
|
%
|
|
|
Xplornet Communications, Inc. - Warrants (a) (c) (e)
|
|
Diversified Telecommunication Services
|
|
Expire 10/25/2023
|
|
10,284
|
|
|
—
|
|
|
4,655
|
|
|
0.3
|
%
|
|||
|
Sub Total Equity/Other
|
|
|
|
|
|
|
|
$
|
202,533
|
|
|
$
|
233,942
|
|
|
15.7
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
TOTAL INVESTMENTS - 167.5% (b)
|
|
|
|
|
|
|
|
$
|
2,598,628
|
|
|
$
|
2,503,523
|
|
|
167.5
|
%
|
||
|
(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 acquire 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 73.8% 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 $1,494,516 as of
December 31, 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. Such investments are valued using significant unobservable inputs (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, 2017
.
|
|
Portfolio Company Name
|
|
Investment Type
|
|
Commitment Type
|
|
Original Commitment
|
|
Remaining Commitment
|
||||
|
AMI Entertainment Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
$
|
1,234
|
|
|
$
|
1,234
|
|
|
Amteck, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
5,000
|
|
|
5,000
|
|
||
|
AqGen Ascensus, Inc.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
1,667
|
|
||
|
Berner Food & Beverage LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,693
|
|
|
2,693
|
|
||
|
Black Mountain Sand LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
13,050
|
|
|
13,050
|
|
||
|
CCW, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
3,000
|
|
|
600
|
|
||
|
CIG Financial, LLC
|
|
Senior Secured Second Lien Debt
|
|
Delayed draw term loan
|
|
5,000
|
|
|
4,000
|
|
||
|
ERG Holding Company
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
263
|
|
|
136
|
|
||
|
ERG Holding Company
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
87
|
|
|
78
|
|
||
|
Ideal Tridon Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,731
|
|
|
2,185
|
|
||
|
InMotion Entertainment Group, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,200
|
|
|
1,843
|
|
||
|
Lakeland Tours, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
464
|
|
|
464
|
|
||
|
Midwest Can Company, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
828
|
|
|
828
|
|
||
|
Motion Recruitment Partners, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,000
|
|
|
2,000
|
|
||
|
NexSteppe Inc.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,825
|
|
|
250
|
|
||
|
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
|
|
10,764
|
|
|
538
|
|
||
|
PetVet Care Centers, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
6,704
|
|
|
2,272
|
|
||
|
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
6,579
|
|
|
6,579
|
|
||
|
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
|
|
|
2,000
|
|
||
|
South Grand MM CLO I, LLC
|
|
Equity/Other
|
|
Equity capital commitment
|
|
35,000
|
|
|
5,476
|
|
||
|
Tillamook Country Smoker, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,696
|
|
|
2,696
|
|
||
|
Twentyeighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
442
|
|
|
442
|
|
||
|
US Salt, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
1,297
|
|
|
1,297
|
|
||
|
VetCor Professional Practices LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
3,656
|
|
|
3,656
|
|
||
|
Total
|
|
|
|
|
|
$
|
119,529
|
|
|
$
|
64,500
|
|
|
(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, 2017
|
|||||
|
Basho Technologies, Inc.
|
|
Senior Secured First Lien Debt
|
|
17.00
|
%
|
|
—
|
%
|
|
17.00
|
%
|
|
$
|
—
|
|
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.)
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
13.88
|
%
|
|
13.88
|
%
|
|
—
|
|
|
|
Greenwave Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
10.00
|
%
|
|
3.00
|
%
|
|
13.00
|
%
|
|
476
|
|
|
|
ILC Dover LP
|
|
Senior Secured First Lien Debt
|
|
8.24
|
%
|
|
2.00
|
%
|
|
10.24
|
%
|
|
214
|
|
|
|
Kahala Ireland OpCo Designated Activity Company
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
13.00
|
%
|
|
13.00
|
%
|
|
141
|
|
|
|
Lightsquared LP
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
10.27
|
%
|
|
10.27
|
%
|
|
1,069
|
|
|
|
MMM Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
10.32
|
%
|
|
—
|
%
|
|
10.32
|
%
|
|
—
|
|
|
|
MSO of Puerto Rico, LLC
|
|
Senior Secured First Lien Debt
|
|
10.32
|
%
|
|
—
|
%
|
|
10.32
|
%
|
|
—
|
|
|
|
New Star Metals Inc.
|
|
Senior Secured First Lien Debt
|
|
11.00
|
%
|
|
—
|
%
|
|
11.00
|
%
|
|
—
|
|
|
|
NexSteppe Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
12.00
|
%
|
|
12.00
|
%
|
|
135
|
|
|
|
Park Ave RE Holdings, LLC
|
|
Subordinated Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
—
|
|
|
|
Steel City Media
|
|
Subordinated Debt
|
|
—
|
%
|
|
16.00
|
%
|
|
16.00
|
%
|
|
2,243
|
|
|
|
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
14.70
|
%
|
|
14.70
|
%
|
|
266
|
|
|
|
Twentyeighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
4.92
|
%
|
|
4.50
|
%
|
|
9.42
|
%
|
|
108
|
|
|
|
Twentyeighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
1.00
|
%
|
|
7.00
|
%
|
|
8.00
|
%
|
|
390
|
|
|
|
Twentyeighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
0.25
|
%
|
|
8.75
|
%
|
|
9.00
|
%
|
|
441
|
|
|
|
Xplornet Communications, Inc.
|
|
Subordinated Debt
|
|
—
|
%
|
|
13.00
|
%
|
|
13.00
|
%
|
|
946
|
|
|
|
Xplornet Communications, Inc.
|
|
Subordinated Debt
|
|
—
|
%
|
|
10.63
|
%
|
|
10.63
|
%
|
|
534
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
$
|
6,963
|
|
|||
|
(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. The Company classifies this investment as "controlled".
|
|
(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. The Company classifies this investment as "affiliated".
|
|
(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 four investments with a total fair value of $3.9 million that are classified as Affiliated Investments.
|
|
(t)
|
The investment is on non-accrual status as of
December 31, 2017
.
|
|
(u)
|
Investments are held in the taxable wholly-owned, consolidated subsidiary, 54
th
Street Equity Holdings, Inc.
|
|
(v)
|
The Collateralized Securities - subordinated notes are treated as equity investments and 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
December 31, 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 December 31, 2017
|
|||||
|
|
Investments at
Fair Value
|
|
Percentage of
Total Portfolio
|
|||
|
Diversified Investment Vehicles
|
$
|
279,683
|
|
|
11.2
|
%
|
|
Business Services
|
197,181
|
|
|
7.9
|
|
|
|
Aerospace & Defense
|
165,406
|
|
|
6.6
|
|
|
|
Hotels, Restaurants & Leisure
|
149,551
|
|
|
6.0
|
|
|
|
Health Care
|
148,156
|
|
|
5.9
|
|
|
|
Diversified Telecommunication Services
|
125,997
|
|
|
5.0
|
|
|
|
Health Care Providers & Services
|
121,732
|
|
|
4.9
|
|
|
|
Diversified Consumer Services
|
116,717
|
|
|
4.7
|
|
|
|
Commercial Services & Supplies
|
116,524
|
|
|
4.6
|
|
|
|
Technology
|
97,471
|
|
|
3.9
|
|
|
|
Media
|
95,534
|
|
|
3.8
|
|
|
|
Food Products
|
84,966
|
|
|
3.4
|
|
|
|
Energy Equipment & Services
|
84,496
|
|
|
3.4
|
|
|
|
Internet Software & Services
|
74,129
|
|
|
3.0
|
|
|
|
Real Estate Management & Development
|
73,515
|
|
|
2.9
|
|
|
|
Metals & Mining
|
68,738
|
|
|
2.6
|
|
|
|
Chemicals
|
56,121
|
|
|
2.2
|
|
|
|
Professional Services
|
46,972
|
|
|
1.9
|
|
|
|
Communications Equipment
|
44,658
|
|
|
1.8
|
|
|
|
Software
|
36,903
|
|
|
1.5
|
|
|
|
Gaming/Lodging
|
33,823
|
|
|
1.3
|
|
|
|
Specialty Retail
|
32,202
|
|
|
1.3
|
|
|
|
Consumer Finance
|
31,813
|
|
|
1.3
|
|
|
|
Diversified Financial Services
|
31,736
|
|
|
1.3
|
|
|
|
Auto Components
|
28,975
|
|
|
1.2
|
|
|
|
Transportation Infrastructure
|
27,423
|
|
|
1.1
|
|
|
|
IT Services
|
26,688
|
|
|
1.1
|
|
|
|
Life Sciences Tools & Services
|
26,220
|
|
|
1.0
|
|
|
|
Containers & Packaging
|
20,060
|
|
|
0.8
|
|
|
|
Insurance
|
19,096
|
|
|
0.8
|
|
|
|
Automobiles
|
14,930
|
|
|
0.6
|
|
|
|
Health Care Technology
|
12,729
|
|
|
0.5
|
|
|
|
Electronic Equipment, Instruments & Components
|
10,066
|
|
|
0.4
|
|
|
|
Textiles, Apparel & Luxury Goods
|
3,312
|
|
|
0.1
|
|
|
|
Total
|
$
|
2,503,523
|
|
|
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
|
$
|
—
|
|
|
$
|
554,140
|
|
|
$
|
1,346,829
|
|
|
—
|
|
|
$
|
1,900,969
|
|
|
|
Senior Secured Second Lien Debt
|
—
|
|
|
61,618
|
|
|
175,706
|
|
|
—
|
|
|
237,324
|
|
|||||
|
Subordinated Debt
|
—
|
|
|
67,463
|
|
|
61,645
|
|
|
—
|
|
|
129,108
|
|
|||||
|
Collateralized Securities
|
—
|
|
|
—
|
|
|
161,934
|
|
|
—
|
|
|
161,934
|
|
|||||
|
Equity/Other
|
7,489
|
|
|
5,293
|
|
|
93,020
|
|
|
91,715
|
|
|
197,517
|
|
|||||
|
Total
|
$
|
7,489
|
|
|
$
|
688,514
|
|
|
$
|
1,839,134
|
|
|
$
|
91,715
|
|
|
$
|
2,626,852
|
|
|
|
Senior Secured First Lien Debt
|
|
Senior Secured Second Lien Debt
|
|
Subordinated Debt
|
|
Collateralized Securities
|
|
Equity/Other
|
|
Total
|
||||||||||||
|
Balance as of December 31, 2017
|
$
|
1,254,503
|
|
|
$
|
203,881
|
|
|
$
|
61,089
|
|
|
$
|
160,195
|
|
|
$
|
103,738
|
|
|
$
|
1,783,406
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
6,338
|
|
|
(3,364
|
)
|
|
(549
|
)
|
|
29,996
|
|
|
(6,750
|
)
|
|
25,671
|
|
||||||
|
Purchases and other adjustments to cost
|
168,863
|
|
|
17,296
|
|
|
1,152
|
|
|
7,679
|
|
|
55
|
|
|
195,045
|
|
||||||
|
Sales and redemptions
|
(78,336
|
)
|
|
(20,074
|
)
|
|
—
|
|
|
(5,936
|
)
|
|
(5,802
|
)
|
|
(110,148
|
)
|
||||||
|
Net realized gains (losses)
|
(8,450
|
)
|
|
326
|
|
|
(47
|
)
|
|
(30,000
|
)
|
|
1,779
|
|
|
(36,392
|
)
|
||||||
|
Transfers in
|
3,911
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,911
|
|
||||||
|
Transfers out
|
—
|
|
|
(22,359
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,359
|
)
|
||||||
|
Balance as of March 31, 2018
|
$
|
1,346,829
|
|
|
$
|
175,706
|
|
|
$
|
61,645
|
|
|
$
|
161,934
|
|
|
$
|
93,020
|
|
|
$
|
1,839,134
|
|
|
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: |
$
|
(3,057
|
)
|
|
$
|
(3,038
|
)
|
|
$
|
(549
|
)
|
|
$
|
29,995
|
|
|
$
|
(4,094
|
)
|
|
$
|
19,257
|
|
|
|
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
|
(23,259
|
)
|
|
(558
|
)
|
|
(2,718
|
)
|
|
(8,140
|
)
|
|
13,805
|
|
|
(20,870
|
)
|
||||||
|
Purchases and other adjustments to cost
|
427,865
|
|
|
79,561
|
|
|
3,167
|
|
|
161
|
|
|
38,817
|
|
|
549,571
|
|
||||||
|
Sales and redemptions
|
(342,176
|
)
|
|
(117,696
|
)
|
|
(21,453
|
)
|
|
(79,376
|
)
|
|
(3,980
|
)
|
|
(564,681
|
)
|
||||||
|
Net realized gains (losses)
|
(11,753
|
)
|
|
1,144
|
|
|
1,553
|
|
|
(2,032
|
)
|
|
(1,698
|
)
|
|
(12,786
|
)
|
||||||
|
Transfers in
|
287,727
|
|
|
36,379
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
324,106
|
|
||||||
|
Transfers out
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Balance as of December 31, 2017
|
$
|
1,254,503
|
|
|
$
|
203,881
|
|
|
$
|
61,089
|
|
|
$
|
160,195
|
|
|
$
|
103,738
|
|
|
$
|
1,783,406
|
|
|
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: |
$
|
(36,523
|
)
|
|
$
|
(841
|
)
|
|
$
|
(1,678
|
)
|
|
$
|
(9,353
|
)
|
|
$
|
13,573
|
|
|
$
|
(34,822
|
)
|
|
|
Investments at
Amortized Cost
|
|
Investments at
Fair Value
|
|
Fair Value
Percentage of
Total Portfolio
|
|||||
|
Senior Secured First Lien Debt
|
$
|
1,982,847
|
|
|
$
|
1,900,969
|
|
|
72.4
|
%
|
|
Senior Secured Second Lien Debt
|
241,107
|
|
|
237,324
|
|
|
9.0
|
|
||
|
Subordinated Debt
|
131,037
|
|
|
129,108
|
|
|
4.9
|
|
||
|
Collateralized Securities
|
165,274
|
|
|
161,934
|
|
|
6.2
|
|
||
|
Equity/Other
|
171,235
|
|
|
197,517
|
|
|
7.5
|
|
||
|
Total
|
$
|
2,691,500
|
|
|
$
|
2,626,852
|
|
|
100.0
|
%
|
|
|
Investments at
Amortized Cost
|
|
Investments at
Fair Value
|
|
Fair Value
Percentage of
Total Portfolio
|
|||||
|
Senior Secured First Lien Debt
|
$
|
1,865,392
|
|
|
$
|
1,776,534
|
|
|
71.0
|
%
|
|
Senior Secured Second Lien Debt
|
239,258
|
|
|
238,513
|
|
|
9.5
|
|
||
|
Subordinated Debt
|
97,916
|
|
|
94,339
|
|
|
3.8
|
|
||
|
Collateralized Securities
|
193,529
|
|
|
160,195
|
|
|
6.4
|
|
||
|
Equity/Other
|
202,533
|
|
|
233,942
|
|
|
9.3
|
|
||
|
Total
|
$
|
2,598,628
|
|
|
$
|
2,503,523
|
|
|
100.0
|
%
|
|
|
|
|
|
Range
|
|
|
|||||||||||
|
Asset Category
|
|
Fair Value
|
|
Primary Valuation Technique
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted Average
(a)
|
|||||
|
Senior Secured First Lien Debt
(b)
|
|
$
|
1,025,569
|
|
|
Yield Analysis
|
|
Market Yield
|
|
5.50
|
%
|
|
25.00
|
%
|
|
9.74
|
%
|
|
Senior Secured First Lien Debt
(b)
(c)
|
|
$
|
141,549
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
15.00
|
%
|
|
17.00
|
%
|
|
N/A
|
|
|
Senior Secured Second Lien Debt
(d)
|
|
$
|
162,073
|
|
|
Yield Analysis
|
|
Market Yield
|
|
9.25
|
%
|
|
19.11
|
%
|
|
13.25
|
%
|
|
Subordinated Debt
(c)
(e)
|
|
$
|
37,192
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
8.35
|
%
|
|
8.55
|
%
|
|
N/A
|
|
|
Subordinated Debt
(c) (e)
|
|
$
|
3,443
|
|
|
Yield Analysis
|
|
Market Yield
|
|
12.50
|
%
|
|
14.60
|
%
|
|
N/A
|
|
|
Collateralized Securities
|
|
$
|
161,934
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
5.60
|
%
|
|
30.50
|
%
|
|
18.46
|
%
|
|
Equity/Other
(f)
|
|
$
|
50,041
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
8.50%
|
|
|
17.50%
|
|
|
10.68%
|
|
|
Equity/Other
(f)
|
|
$
|
25,413
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
5.49%
|
|
|
11.69%
|
|
|
11.58%
|
|
|
Equity/Other
(f)
|
|
$
|
1,708
|
|
|
Waterfall Analysis
|
|
EBITDA Multiple
|
|
1.40x
|
|
|
10.00x
|
|
|
6.66x
|
|
|
Equity/Other
(f)
|
|
$
|
48
|
|
|
Option Pricing Method
|
|
Volatility
|
|
30.00%
|
|
|
50.00%
|
|
|
40.00%
|
|
|
(a)
|
Weighted averages are calculated based on fair value of investments.
|
|
(b)
|
The remaining $179.7 million of senior secured first lien debt consisted of $114.9 million which were valued using a Scenario-Based analysis technique factoring in various unobservable inputs and $64.8 million which were valued based on 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 $13.6 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 $21.0 million of subordinated debt were valued using a Scenario-Based analysis technique factoring in various unobservable inputs.
|
|
(f)
|
The remaining $15.6 million of equity/other investments were valued using the Current Method, factoring in various unobservable inputs and $0.2 million which were valued based on their respective acquisition prices as the investments closed near year end.
|
|
|
|
|
|
Range
|
|
|
|||||||||||
|
Asset Category
|
|
Fair Value
|
|
Primary Valuation Technique
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted Average
(a)
|
|||||
|
Senior Secured First Lien Debt
(b)
|
|
$
|
967,773
|
|
|
Yield Analysis
|
|
Market Yield
|
|
5.00
|
%
|
|
26.75
|
%
|
|
9.21
|
%
|
|
Senior Secured First Lien Debt
(b)
(c)
|
|
$
|
141,549
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
15.00
|
%
|
|
17.00
|
%
|
|
N/A
|
|
|
Senior Secured Second Lien Debt
(d)
|
|
$
|
184,572
|
|
|
Yield Analysis
|
|
Market Yield
|
|
9.25
|
%
|
|
15.05
|
%
|
|
11.91
|
%
|
|
Subordinated Debt
(c)
(e)
|
|
$
|
37,192
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
8.20
|
%
|
|
9.20
|
%
|
|
N/A
|
|
|
Subordinated Debt
(c) (e)
|
|
$
|
3,312
|
|
|
Yield Analysis
|
|
Market Yield
|
|
12.50
|
%
|
|
14.60
|
%
|
|
N/A
|
|
|
Collateralized Securities
|
|
$
|
160,195
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
12.35
|
%
|
|
37.50
|
%
|
|
20.37
|
%
|
|
Equity/Other
(f)
|
|
$
|
51,282
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
8.45%
|
|
|
16.00%
|
|
|
10.65%
|
|
|
Equity/Other
(f)
|
|
$
|
27,589
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
5.63%
|
|
|
12.19%
|
|
|
12.05%
|
|
|
Equity/Other
(f)
|
|
$
|
1,462
|
|
|
Waterfall Analysis
|
|
EBITDA Multiple
|
|
4.00x
|
|
|
10.50x
|
|
|
9.31x
|
|
|
Equity/Other
(f)
|
|
$
|
47
|
|
|
Option Pricing Method
|
|
Volatility
|
|
30.00%
|
|
|
50.00%
|
|
|
40.00%
|
|
|
(a)
|
Weighted averages are calculated based on fair value of investments.
|
|
(b)
|
The remaining $145.2 million of senior secured first lien debt consisted of $113.5 million which were valued using a Scenario-Based analysis technique factoring in various unobservable inputs and $31.7 million which were valued based on 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 $19.3 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 $20.6 million of subordinated debt were valued using a Scenario-Based analysis technique factoring in various unobservable inputs.
|
|
(f)
|
The remaining $23.2 million of equity/other investments were valued using the Current Method, factoring in various unobservable inputs and $0.2 million which were valued based on their respective acquisition prices as the investments 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.
|
|
|
|
Maturity Date
|
|
Total Aggregate Borrowing Capacity
|
|
Total Principal Outstanding
|
|
Less Deferred Financing Costs
|
|
Amount per Balance Sheet
|
||||||||
|
Wells Fargo Credit Facility
|
|
5/18/2022
|
|
$
|
400,000
|
|
|
$
|
266,052
|
|
|
$
|
(5,944
|
)
|
|
$
|
260,108
|
|
|
Citi Credit Facility
|
|
5/28/2020
|
|
400,000
|
|
|
356,003
|
|
|
(1,708
|
)
|
|
354,295
|
|
||||
|
UBS Credit Facility
|
|
4/7/2018
|
|
232,500
|
|
|
232,500
|
|
|
(7
|
)
|
|
232,493
|
|
||||
|
2022 Notes
|
|
12/30/2022
|
|
150,000
|
|
|
149,216
|
|
|
(2,167
|
)
|
|
147,049
|
|
||||
|
2020 Notes
|
|
9/1/2020
|
|
100,000
|
|
|
99,236
|
|
|
(304
|
)
|
|
98,932
|
|
||||
|
JPMC PB Account
|
|
n/a
|
|
72,089
|
|
|
71,173
|
|
|
—
|
|
|
71,173
|
|
||||
|
Totals
|
|
|
|
$
|
1,354,589
|
|
|
$
|
1,174,180
|
|
|
$
|
(10,130
|
)
|
|
$
|
1,164,050
|
|
|
|
|
Maturity Date
|
|
Total Aggregate Borrowing Capacity
|
|
Total Principal Outstanding
|
|
Less Deferred Financing Costs
|
|
Amount per Balance Sheet
|
||||||||
|
Wells Fargo Credit Facility
|
|
5/18/2022
|
|
$
|
400,000
|
|
|
$
|
188,051
|
|
|
$
|
(6,299
|
)
|
|
$
|
181,752
|
|
|
Citi Credit Facility
|
|
5/28/2020
|
|
400,000
|
|
|
336,003
|
|
|
(1,902
|
)
|
|
334,101
|
|
||||
|
UBS Credit Facility
|
|
4/7/2018
|
|
232,500
|
|
|
232,500
|
|
|
(110
|
)
|
|
232,390
|
|
||||
|
2022 Notes
|
|
12/30/2022
|
|
150,000
|
|
|
149,175
|
|
|
(2,280
|
)
|
|
146,895
|
|
||||
|
2020 Notes
|
|
9/1/2020
|
|
100,000
|
|
|
99,158
|
|
|
(335
|
)
|
|
98,823
|
|
||||
|
JPMC PB Account
|
|
n/a
|
|
49,994
|
|
|
36,262
|
|
|
—
|
|
|
36,262
|
|
||||
|
Totals
|
|
|
|
$
|
1,332,494
|
|
|
$
|
1,041,149
|
|
|
$
|
(10,926
|
)
|
|
$
|
1,030,223
|
|
|
|
Three months ended March 31, 2018
|
||||||||||||||
|
|
Interest Rate
|
|
Non-Usage Rate
|
|
Interest Expense
|
|
Deferred Financing Costs
(3)
|
|
Other Fees
(4)
|
||||||
|
Wells Fargo Credit Facility
|
(1)
|
|
(2)
|
|
$
|
2,161
|
|
|
$
|
355
|
|
|
$
|
498
|
|
|
Citi Credit Facility
|
L+1.60%
|
|
0.50%
|
|
2,798
|
|
|
195
|
|
|
96
|
|
|||
|
UBS Credit Facility
|
L+4.05%
|
|
n/a
|
|
3,372
|
|
|
103
|
|
|
25
|
|
|||
|
2022 Notes
|
4.75%
|
|
n/a
|
|
1,822
|
|
|
112
|
|
|
4
|
|
|||
|
2020 Notes
|
6.00%
|
|
n/a
|
|
1,578
|
|
|
31
|
|
|
—
|
|
|||
|
JPMC PB Account
|
L+0.90%
|
|
n/a
|
|
300
|
|
|
—
|
|
|
—
|
|
|||
|
Totals
|
|
|
|
|
$
|
12,031
|
|
|
$
|
796
|
|
|
$
|
623
|
|
|
|
Three months ended March 31, 2017
|
||||||||||||||
|
|
Interest Rate
|
|
Non-Usage Rate
|
|
Interest Expense
|
|
Deferred Financing Costs
(3)
|
|
Other Fees
(4)
|
||||||
|
Wells Fargo Credit Facility
|
(1)
|
|
(2)
|
|
$
|
2,368
|
|
|
$
|
212
|
|
|
$
|
238
|
|
|
Citi Credit Facility
|
L+1.70%
|
|
0.50%
|
|
2,032
|
|
|
182
|
|
|
140
|
|
|||
|
UBS Credit Facility
|
L+4.05%
|
|
n/a
|
|
2,931
|
|
|
102
|
|
|
23
|
|
|||
|
2020 Notes
|
6.00%
|
|
n/a
|
|
1,578
|
|
|
31
|
|
|
7
|
|
|||
|
JPMC PB Account
|
L+0.90%
|
|
n/a
|
|
6
|
|
|
—
|
|
|
—
|
|
|||
|
Totals
|
|
|
|
|
$
|
8,915
|
|
|
$
|
527
|
|
|
$
|
408
|
|
|
|
Level
|
|
Carrying Amount at March 31, 2018
|
|
Fair Value at March 31, 2018
|
||||
|
Wells Fargo Credit Facility
|
3
|
|
$
|
266,052
|
|
|
$
|
266,052
|
|
|
Citi Credit Facility
|
3
|
|
356,003
|
|
|
356,003
|
|
||
|
UBS Credit Facility
|
3
|
|
232,500
|
|
|
232,500
|
|
||
|
2022 Notes
|
3
|
|
149,216
|
|
|
150,899
|
|
||
|
2020 Notes
|
3
|
|
99,236
|
|
|
103,524
|
|
||
|
JPMC PB Account
|
3
|
|
71,173
|
|
|
71,173
|
|
||
|
|
|
|
$
|
1,174,180
|
|
|
$
|
1,180,151
|
|
|
|
Level
|
|
Carrying Amount at December 31, 2017
|
|
Fair Value at December 31, 2017
|
||||
|
Wells Fargo Credit Facility
|
3
|
|
$
|
188,051
|
|
|
$
|
188,051
|
|
|
Citi Credit Facility
|
3
|
|
336,003
|
|
|
336,003
|
|
||
|
UBS Credit Facility
|
3
|
|
232,500
|
|
|
232,500
|
|
||
|
2022 Notes
|
3
|
|
149,175
|
|
|
148,811
|
|
||
|
2020 Notes
|
3
|
|
99,158
|
|
|
103,276
|
|
||
|
JPMC PB Account
|
3
|
|
36,262
|
|
|
36,262
|
|
||
|
|
|
|
$
|
1,041,149
|
|
|
$
|
1,044,903
|
|
|
|
|
Shares
|
|
Value
|
|||
|
Shares Sold
|
|
—
|
|
|
$
|
—
|
|
|
Shares Issued through DRIP
|
|
1,223,362
|
|
|
10,167
|
|
|
|
Share Repurchases
|
|
(2,711,841
|
)
|
|
(22,549
|
)
|
|
|
|
|
(1,488,479
|
)
|
|
$
|
(12,382
|
)
|
|
|
|
Shares
|
|
Value
|
|||
|
Shares Sold
|
|
—
|
|
|
$
|
—
|
|
|
Shares Issued through DRIP
|
|
6,162,092
|
|
|
52,455
|
|
|
|
Share Repurchases
|
|
(3,548,885
|
)
|
|
(30,212
|
)
|
|
|
|
|
2,613,207
|
|
|
$
|
22,243
|
|
|
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
|
|
|
December 19, 2017
|
|
January 19, 2018
|
|
21,521,235
|
|
|
2,547,524
|
|
|
$
|
8.31
|
|
|
$
|
21,350.21
|
|
|
|
For the Three Months Ended March 31,
|
|
For the Three Months Ended March 31,
|
||||
|
|
2018
|
|
2017
|
||||
|
Basic and diluted
|
|
|
|
||||
|
Net increase in net assets resulting from operations
|
$
|
21,976
|
|
|
$
|
19,367
|
|
|
Weighted average common shares outstanding
|
179,247,608
|
|
|
178,215,971
|
|
||
|
Net increase in net assets resulting from operations per share
|
$
|
0.12
|
|
|
$
|
0.11
|
|
|
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 3, 2017
|
|
0.06
|
|
|
6,307
|
|
|
3,692
|
|
|
9,999
|
|
||||
|
August 31, 2017
|
|
September 1, 2017
|
|
0.06
|
|
|
6,223
|
|
|
3,622
|
|
|
9,845
|
|
||||
|
September 30, 2017
|
|
October 2, 2017
|
|
0.05
|
|
|
6,060
|
|
|
3,477
|
|
|
9,537
|
|
||||
|
October 31, 2017
|
|
November 1, 2017
|
|
0.06
|
|
|
6,303
|
|
|
3,574
|
|
|
9,877
|
|
||||
|
November 30, 2017
|
|
December 1, 2017
|
|
0.05
|
|
|
6,140
|
|
|
3,443
|
|
|
9,583
|
|
||||
|
December 31, 2017
|
|
January 2, 2018
|
|
0.06
|
|
|
6,388
|
|
|
3,535
|
|
|
9,923
|
|
||||
|
|
|
|
|
|
|
$
|
85,065
|
|
|
$
|
50,785
|
|
|
$
|
135,850
|
|
||
|
2018:
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
January 31, 2018
|
|
February 1, 2018
|
|
0.06
|
|
|
$
|
6,443
|
|
|
$
|
3,503
|
|
|
$
|
9,946
|
|
|
|
February 28, 2018
|
|
March 1, 2018
|
|
0.05
|
|
|
5,809
|
|
|
3,129
|
|
|
8,938
|
|
||||
|
March 31, 2018
|
|
April 1, 2018
|
|
0.06
|
|
|
6,436
|
|
|
3,407
|
|
|
9,843
|
|
||||
|
|
|
|
|
|
|
$
|
18,688
|
|
|
$
|
10,039
|
|
|
$
|
28,727
|
|
||
|
|
For the Three Months Ended March 31,
|
|
For the Three Months Ended March 31,
|
||||
|
|
2018
|
|
2017
|
||||
|
Per share data:
|
|
|
|
||||
|
Net asset value, beginning of period
|
$
|
8.30
|
|
|
$
|
8.62
|
|
|
|
|
|
|
||||
|
Results of operations
(1)
Net investment income
|
0.15
|
|
|
0.15
|
|
||
|
Net realized and unrealized gain (loss), net of deferred taxes
|
(0.03
|
)
|
|
(0.04
|
)
|
||
|
Net increase in net assets resulting from operations
|
0.12
|
|
|
0.11
|
|
||
|
|
|
|
|
||||
|
Stockholder distributions
(2)
Distributions from net investment income
|
(0.16
|
)
|
|
(0.21
|
)
|
||
|
Net decrease in net assets resulting from stockholder distributions
|
(0.16
|
)
|
|
(0.21
|
)
|
||
|
|
|
|
|
||||
|
Capital share transactions
Issuance of common stock
(3)
|
—
|
|
|
—
|
|
||
|
Repurchases of common stock
|
—
|
|
|
—
|
|
||
|
Net decrease in net assets resulting from capital share transactions
|
—
|
|
|
—
|
|
||
|
Net asset value, end of period
|
$
|
8.26
|
|
|
$
|
8.52
|
|
|
Shares outstanding at end of period
|
178,245,519
|
|
|
178,750,498
|
|
||
|
Total return
(4)
|
1.47
|
%
|
|
1.32
|
%
|
||
|
Ratio/Supplemental data:
|
|
|
|
||||
|
Net assets, end of period (in thousands)
|
$
|
1,475,064
|
|
|
$
|
1,525,136
|
|
|
Ratio of net investment income to average net assets
(6)
(7)
|
8.09
|
%
|
|
8.38
|
%
|
||
|
Ratio of total expenses to average net assets
(6) (7)
|
7.82
|
%
|
|
6.50
|
%
|
||
|
Portfolio turnover rate
(5)
|
6.26
|
%
|
|
7.23
|
%
|
||
|
(1)
|
The 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 during the period.
|
|
Portfolio Company
(1)
|
|
Type of Asset
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2017
|
|
Gross additions
*
|
|
Gross reductions
**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss)
(6)
|
|
Fair Value at March 31, 2018
|
||||||||||||||
|
Control Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
California Resources Development JV, LLC - Preferred Equity
|
|
Equity/Other
|
|
$
|
1,457
|
|
|
$
|
26,984
|
|
|
$
|
—
|
|
|
$
|
(2,134
|
)
|
|
$
|
—
|
|
|
$
|
102
|
|
|
$
|
24,952
|
|
|
Capstone Nutrition Common Stock (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
—
|
|
|
2,829
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
2,876
|
|
|||||||
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
4,096
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,127
|
)
|
|
2,969
|
|
|||||||
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
9,467
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,605
|
)
|
|
6,862
|
|
|||||||
|
Capstone Nutrition - Common Stock (fka Integrity Nutraceuticals, Inc.) (4)
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Kahala Ireland OpCo Designated Activity Company
(3)
|
|
Senior Secured First Lien Debt
|
|
4,600
|
|
|
141,549
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
141,549
|
|
|||||||
|
Kahala Ireland OpCo Designated Activity Company - Common Equity
(3)
|
|
Equity/Other
|
|
—
|
|
|
11,709
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,860
|
)
|
|
8,849
|
|
|||||||
|
Kahala Ireland OpCo Designated Activity Company - Profit Participating Note
(3)
|
|
Equity/Other
|
|
—
|
|
|
3,250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,250
|
|
|||||||
|
Kahala US OpCo LLC - Class A Preferred Units
(3)
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|||||||
|
NexSteppe Inc. - Series C Preferred Stock Warrant
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
NexSteppe Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|||||||
|
NexSteppe Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
NMFC Senior Loan Program I, LLC
|
|
Equity/Other
|
|
1,626
|
|
|
50,805
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
321
|
|
|
51,126
|
|
|||||||
|
South Grand MM CLO I, LLC
|
|
Equity/Other
|
|
—
|
|
|
28,904
|
|
|
—
|
|
|
(19,800
|
)
|
|
394
|
|
|
1,098
|
|
|
10,596
|
|
|||||||
|
Park Ave RE Holdings, LLC - Common Shares
(2)
|
|
Equity/Other
|
|
—
|
|
|
12,678
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
1,517
|
|
|
14,297
|
|
|||||||
|
Park Ave RE Holdings, LLC - Preferred Shares
(2)
|
|
Equity/Other
|
|
—
|
|
|
23,645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,645
|
|
|||||||
|
Park Ave RE Holdings, LLC
(2)
|
|
Subordinated Debt
|
|
1,209
|
|
|
37,192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,192
|
|
|||||||
|
Total Control Investments
|
|
|
|
$
|
8,892
|
|
|
$
|
350,279
|
|
|
$
|
3,079
|
|
|
$
|
(21,822
|
)
|
|
$
|
394
|
|
|
$
|
(3,767
|
)
|
|
$
|
328,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Answers Corporation - Common Equity
|
|
Equity/Other
|
|
$
|
—
|
|
|
$
|
14,231
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,266
|
)
|
|
10,965
|
|
|
|
Answers Corporation
|
|
Senior Secured First Lien Debt
|
|
54
|
|
|
2,916
|
|
|
5
|
|
|
(7
|
)
|
|
—
|
|
|
(5
|
)
|
|
2,909
|
|
|||||||
|
Answers Corporation
|
|
Senior Secured Second Lien Debt
|
|
143
|
|
|
4,371
|
|
|
39
|
|
|
(12
|
)
|
|
1
|
|
|
(39
|
)
|
|
4,360
|
|
|||||||
|
Portfolio Company
(1)
|
|
Type of Asset
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2017
|
|
Gross additions
*
|
|
Gross reductions
**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss)
(6)
|
|
Fair Value at March 31, 2018
|
||||||||||||||
|
B&M CLO 2014-1, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
392
|
|
|
12,804
|
|
|
—
|
|
|
(592
|
)
|
|
(1,857
|
)
|
|
1,965
|
|
|
12,320
|
|
|||||||
|
Basho Technologies, Inc.
(7)
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,484
|
)
|
|
6,484
|
|
|
—
|
|
|||||||
|
Basho Technologies, Inc.
(7)
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,550
|
)
|
|
2,550
|
|
|
—
|
|
|||||||
|
Basho Technologies, Inc. - Series G Senior Participating Preferred Stock Warrant
(7)
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,000
|
)
|
|
2,000
|
|
|
—
|
|
|||||||
|
CVP Cascade CLO, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
278
|
|
|
4,121
|
|
|
—
|
|
|
(334
|
)
|
|
(5,500
|
)
|
|
4,136
|
|
|
2,423
|
|
|||||||
|
Figueroa CLO 2014-1, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
189
|
|
|
12,508
|
|
|
—
|
|
|
(342
|
)
|
|
(4,000
|
)
|
|
4,032
|
|
|
12,198
|
|
|||||||
|
Danish CRJ LTD. - Common Equity
|
|
Equity/Other
|
|
—
|
|
|
605
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
460
|
|
|||||||
|
MidOcean Credit CLO II, LLC Income Notes
|
|
Collateralized Securities
|
|
602
|
|
|
20,651
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,169
|
|
|
21,820
|
|
|||||||
|
MidOcean Credit CLO III, LLC Subordinated Notes
|
|
Collateralized Securities
|
|
135
|
|
|
17,508
|
|
|
—
|
|
|
(698
|
)
|
|
(3,300
|
)
|
|
3,329
|
|
|
16,839
|
|
|||||||
|
MidOcean Credit CLO IV, LLC Income Notes
|
|
Collateralized Securities
|
|
501
|
|
|
12,212
|
|
|
—
|
|
|
(223
|
)
|
|
—
|
|
|
1,101
|
|
|
13,090
|
|
|||||||
|
NewStar Arlington Senior Loan Program LLC Subordinated Notes
|
|
Collateralized Securities
|
|
1,340
|
|
|
25,439
|
|
|
—
|
|
|
(469
|
)
|
|
—
|
|
|
466
|
|
|
25,436
|
|
|||||||
|
NewStar Exeter Fund CLO – Debt
|
|
Collateralized Securities
|
|
287
|
|
|
8,660
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
(255
|
)
|
|
8,445
|
|
|||||||
|
NewStar Exeter Fund CLO – Equity
|
|
Collateralized Securities
|
|
(58
|
)
|
|
13,089
|
|
|
—
|
|
|
(850
|
)
|
|
(7,000
|
)
|
|
5,832
|
|
|
11,071
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
OFSI Fund VI, Ltd. - Subordinated Note
|
|
Collateralized Securities
|
|
313
|
|
|
10,162
|
|
|
—
|
|
|
(777
|
)
|
|
(1,000
|
)
|
|
1,385
|
|
|
9,770
|
|
|||||||
|
PennantPark Credit Opportunities Fund II, LP
|
|
Equity/Other
|
|
253
|
|
|
10,136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
10,167
|
|
|||||||
|
Related Fee Agreements
(5)
|
|
Collateralized Securities
|
|
(50
|
)
|
|
3,917
|
|
|
—
|
|
|
(710
|
)
|
|
(343
|
)
|
|
635
|
|
|
3,499
|
|
|||||||
|
Silver Spring CLO, Ltd. Subordinated Notes
|
|
Collateralized Securities
|
|
217
|
|
|
10,363
|
|
|
—
|
|
|
(553
|
)
|
|
(6,000
|
)
|
|
4,692
|
|
|
8,502
|
|
|||||||
|
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
157
|
|
|
7,477
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
236
|
|
|
7,713
|
|
|||||||
|
Tax Defense Network, LLC
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Tennenbaum Waterman Fund, L.P.
|
|
Equity/Other
|
|
350
|
|
|
10,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
10,430
|
|
|||||||
|
THL Credit Greenway Fund II LLC
|
|
Equity/Other
|
|
749
|
|
|
11,373
|
|
|
—
|
|
|
(1,615
|
)
|
|
—
|
|
|
(362
|
)
|
|
9,396
|
|
|||||||
|
Twenty Eighty, Inc. - Class A Common Equity
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Twenty Eighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
274
|
|
|
4,719
|
|
|
213
|
|
|
—
|
|
|
—
|
|
|
1,297
|
|
|
6,229
|
|
|||||||
|
Twenty Eighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
113
|
|
|
2,853
|
|
|
53
|
|
|
(36
|
)
|
|
5
|
|
|
12
|
|
|
2,887
|
|
|||||||
|
Twenty Eighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
262
|
|
|
3,739
|
|
|
259
|
|
|
—
|
|
|
—
|
|
|
1,764
|
|
|
5,762
|
|
|||||||
|
WhiteHorse VIII, Ltd. CLO Subordinated Notes
|
|
Collateralized Securities
|
|
72
|
|
|
8,761
|
|
|
—
|
|
|
(389
|
)
|
|
(1,000
|
)
|
|
1,523
|
|
|
8,895
|
|
|||||||
|
World Business Lenders, LLC - Preferred Stock
|
|
Equity/Other
|
|
—
|
|
|
3,759
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,759
|
|
|||||||
|
Portfolio Company
(1)
|
|
Type of Asset
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2017
|
|
Gross additions
*
|
|
Gross reductions
**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss)
(6)
|
|
Fair Value at March 31, 2018
|
||||||||||||||
|
Total Affiliate Investments
|
|
|
|
$
|
6,573
|
|
|
$
|
236,801
|
|
|
$
|
609
|
|
|
$
|
(7,607
|
)
|
|
$
|
(41,028
|
)
|
|
$
|
40,570
|
|
|
$
|
229,345
|
|
|
Total Control & Affiliate Investments
|
|
|
|
$
|
15,465
|
|
|
$
|
587,080
|
|
|
$
|
3,688
|
|
|
$
|
(29,429
|
)
|
|
$
|
(40,634
|
)
|
|
$
|
36,803
|
|
|
$
|
557,508
|
|
|
(1)
|
The principal amount and ownership detail are shown in the consolidated schedules of investments.
|
|
(2)
|
This investment was not deemed significant under Regulation S-X as of March 31, 2018.
|
|
(3)
|
This investment was not deemed significant under Regulation S-X as of March 31, 2018.
|
|
(4)
|
This investment was not deemed significant under Regulation S-X as of March 31, 2018.
|
|
(5)
|
Not all Related Fee Agreements shown on the consolidated schedules of investments are Affiliated Investments.
|
|
(6)
|
Gross of deferred taxes in the amount of $0.5 million.
|
|
(7)
|
Investment no longer held as of
March 31, 2018
.
|
|
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 December 31, 2017
|
||||||||||||||
|
Control Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
California Resources Development JV, LLC - Preferred Equity
|
|
Equity/Other
|
|
$
|
1,987
|
|
|
$
|
—
|
|
|
$
|
26,182
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
802
|
|
|
$
|
26,984
|
|
|
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) (4)
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
19,708
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,145
|
)
|
|
13,563
|
|
|||||||
|
Capstone Nutrition Common Stock (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Capstone Nutrition Common Stock (fka Integrity Nutraceuticals, Inc.)
(4)
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Kahala Ireland OpCo Designated Activity Company
(3)
|
|
Senior Secured First Lien Debt
|
|
19,245
|
|
|
149,409
|
|
|
140
|
|
|
(8,000
|
)
|
|
—
|
|
|
—
|
|
|
141,549
|
|
|||||||
|
Kahala Ireland OpCo Designated Activity Company - Common Equity
(3)
|
|
Equity/Other
|
|
—
|
|
|
8,180
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,529
|
|
|
11,709
|
|
|||||||
|
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 December 31, 2017
|
||||||||||||||
|
Kahala Ireland OpCo Designated Activity Company - Profit Participating Note
(3)
|
|
Equity/Other
|
|
—
|
|
|
3,250
|
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
48
|
|
|
3,250
|
|
|||||||
|
Kahala US OpCo LLC
(4)
|
|
Senior Secured First Lien Debt
|
|
120
|
|
|
2,690
|
|
|
—
|
|
|
(2,690
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Kahala US OpCo LLC - Class A Preferred Units
(4)
|
|
Equity/Other
|
|
—
|
|
|
4,000
|
|
|
—
|
|
|
(2,491
|
)
|
|
(1,702
|
)
|
|
193
|
|
|
—
|
|
|||||||
|
NexSteppe Inc.
|
|
Senior Secured First Lien Debt
|
|
381
|
|
|
—
|
|
|
8,250
|
|
|
(185
|
)
|
|
—
|
|
|
(8,065
|
)
|
|
—
|
|
|||||||
|
NexSteppe Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
—
|
|
|
1,500
|
|
|
—
|
|
|
—
|
|
|
(1,500
|
)
|
|
—
|
|
|||||||
|
NexSteppe Inc. - Series C Preferred Stock Warrant
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
1,280
|
|
|
(1,000
|
)
|
|
—
|
|
|
(280
|
)
|
|
—
|
|
|||||||
|
NMFC Senior Loan Program I, LLC
|
|
Equity/Other
|
|
6,782
|
|
|
—
|
|
|
47,057
|
|
|
—
|
|
|
—
|
|
|
3,748
|
|
|
50,805
|
|
|||||||
|
Park Ave RE Holdings, LLC
(2)
|
|
Subordinated Debt
|
|
4,902
|
|
|
37,192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,192
|
|
|||||||
|
Park Ave RE Holdings, LLC
(2)
- Common Shares
|
|
Equity/Other
|
|
—
|
|
|
6,564
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,114
|
|
|
12,678
|
|
|||||||
|
Park Ave RE Holdings, LLC (2) - Preferred Shares
|
|
Equity/Other
|
|
946
|
|
|
23,645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,645
|
|
|||||||
|
South Grand MM CLO I, LLC
|
|
Equity/Other
|
|
2,223
|
|
|
—
|
|
|
28,382
|
|
|
—
|
|
|
—
|
|
|
522
|
|
|
28,904
|
|
|||||||
|
Total Control Investments
|
|
|
|
$
|
36,586
|
|
|
$
|
254,638
|
|
|
$
|
112,791
|
|
|
$
|
(14,414
|
)
|
|
$
|
(1,702
|
)
|
|
$
|
(1,034
|
)
|
|
$
|
350,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Answers Corporation
|
|
Senior Secured First Lien Debt
|
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
2,967
|
|
|
$
|
(23
|
)
|
|
$
|
1
|
|
|
$
|
(29
|
)
|
|
2,916
|
|
|
|
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
|
|
418
|
|
|
—
|
|
|
4,118
|
|
|
(35
|
)
|
|
4
|
|
|
284
|
|
|
4,371
|
|
|||||||
|
Answers Corporation
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
11,361
|
|
|
—
|
|
|
—
|
|
|
2,870
|
|
|
14,231
|
|
|||||||
|
B&M CLO 2014-1, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
277
|
|
|
16,772
|
|
|
—
|
|
|
(4,946
|
)
|
|
—
|
|
|
978
|
|
|
12,804
|
|
|||||||
|
Basho Technologies, Inc.
|
|
Senior Secured First Lien Debt
|
|
72
|
|
|
—
|
|
|
3,904
|
|
|
(3,967
|
)
|
|
69
|
|
|
(6
|
)
|
|
—
|
|
|||||||
|
Basho Technologies, Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
—
|
|
|
918
|
|
|
—
|
|
|
—
|
|
|
(918
|
)
|
|
—
|
|
|||||||
|
Basho Technologies, Inc. - Series G Senior Participating Preferred Stock Warrant
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Basho Technologies, Inc. - Series G Senior Preferred Stock
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
CVP Cascade CLO, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
3
|
|
|
8,868
|
|
|
—
|
|
|
(2,934
|
)
|
|
—
|
|
|
(1,813
|
)
|
|
4,121
|
|
|||||||
|
CVP Cascade CLO-2, LTD. Subordinated Notes
(7)
|
|
Collateralized Securities
|
|
191
|
|
|
11,593
|
|
|
—
|
|
|
(10,837
|
)
|
|
(2,829
|
)
|
|
2,073
|
|
|
—
|
|
|||||||
|
Danish CRJ LTD.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
20
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|||||||
|
Danish CRJ LTD.
|
|
Equity/Other
|
|
—
|
|
|
407
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
198
|
|
|
605
|
|
|||||||
|
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 December 31, 2017
|
||||||||||||||
|
Figueroa CLO 2014-1, LTD. Subordinated Notes
|
|
Collateralized Securities
|
|
(103
|
)
|
|
16,101
|
|
|
—
|
|
|
(3,520
|
)
|
|
—
|
|
|
(73
|
)
|
|
12,508
|
|
|||||||
|
MidOcean Credit CLO II, LLC Income Notes
|
|
Collateralized Securities
|
|
2,380
|
|
|
22,419
|
|
|
—
|
|
|
(2,216
|
)
|
|
—
|
|
|
448
|
|
|
20,651
|
|
|||||||
|
MidOcean Credit CLO III, LLC Subordinated Notes
|
|
Collateralized Securities
|
|
715
|
|
|
23,341
|
|
|
—
|
|
|
(3,674
|
)
|
|
—
|
|
|
(2,159
|
)
|
|
17,508
|
|
|||||||
|
MidOcean Credit CLO IV, LLC Income Notes
|
|
Collateralized Securities
|
|
689
|
|
|
15,505
|
|
|
—
|
|
|
(1,871
|
)
|
|
—
|
|
|
(1,422
|
)
|
|
12,212
|
|
|||||||
|
NewStar Arlington Senior Loan Program LLC Subordinated Notes
|
|
Collateralized Securities
|
|
4,930
|
|
|
24,491
|
|
|
—
|
|
|
(1,945
|
)
|
|
—
|
|
|
2,893
|
|
|
25,439
|
|
|||||||
|
NewStar Exeter Fund CLO – Debt
|
|
Collateralized Securities
|
|
1,106
|
|
|
8,455
|
|
|
162
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
8,660
|
|
|||||||
|
NewStar Exeter Fund CLO – Equity
|
|
Collateralized Securities
|
|
1,645
|
|
|
20,579
|
|
|
—
|
|
|
(2,609
|
)
|
|
—
|
|
|
(4,881
|
)
|
|
13,089
|
|
|||||||
|
NMFC Senior Loan Program I, LLC
|
|
Equity/Other
|
|
—
|
|
|
47,057
|
|
|
—
|
|
|
(47,057
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Ocean Trails CLO V, LTD.
(7)
|
|
Collateralized Securities
|
|
48
|
|
|
29,144
|
|
|
—
|
|
|
(29,128
|
)
|
|
906
|
|
|
(922
|
)
|
|
—
|
|
|||||||
|
OFSI Fund VI, Ltd. Subordinated Notes
|
|
Collateralized Securities
|
|
617
|
|
|
17,354
|
|
|
—
|
|
|
(5,007
|
)
|
|
—
|
|
|
(2,185
|
)
|
|
10,162
|
|
|||||||
|
PennantPark Credit Opportunities Fund II, LP
|
|
Equity/Other
|
|
705
|
|
|
9,788
|
|
|
2,691
|
|
|
(2,691
|
)
|
|
10
|
|
|
338
|
|
|
10,136
|
|
|||||||
|
Related Fee Agreements
(5)
|
|
Collateralized Securities
|
|
922
|
|
|
9,647
|
|
|
—
|
|
|
(3,607
|
)
|
|
42
|
|
|
(2,165
|
)
|
|
3,917
|
|
|||||||
|
Silver Spring CLO, Ltd. Subordinated Notes
|
|
Collateralized Securities
|
|
94
|
|
|
12,007
|
|
|
—
|
|
|
(3,554
|
)
|
|
—
|
|
|
1,910
|
|
|
10,363
|
|
|||||||
|
South Grand MM CLO I, LLC
|
|
Equity/Other
|
|
—
|
|
|
28,382
|
|
|
—
|
|
|
(28,382
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Squan Holding Corp.
|
|
Senior Secured First Lien Debt
|
|
—
|
|
|
6,895
|
|
|
—
|
|
|
(6,895
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Squan Holding Corp. - Class A Common Stock
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Squan Holding Corp. - Series A Preferred Stock
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
1,075
|
|
|
—
|
|
|
18,682
|
|
|
(117
|
)
|
|
1
|
|
|
(11,089
|
)
|
|
7,477
|
|
|||||||
|
Tax Defense Network, LLC - Common Equity
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Tennenbaum Waterman Fund, L.P.
|
|
Equity/Other
|
|
1,270
|
|
|
—
|
|
|
10,169
|
|
|
—
|
|
|
—
|
|
|
258
|
|
|
10,427
|
|
|||||||
|
Twentyeighty, Inc. - First Lien Debt (TLA 3/20)
|
|
Senior Secured First Lien Debt
|
|
378
|
|
|
—
|
|
|
2,426
|
|
|
—
|
|
|
—
|
|
|
427
|
|
|
2,853
|
|
|||||||
|
Twentyeighty, Inc. - First Lien Debt (TLB 3/20)
|
|
Senior Secured First Lien Debt
|
|
928
|
|
|
—
|
|
|
4,535
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
4,719
|
|
|||||||
|
Twentyeighty, Inc. - First Lien Debt (TLC 3/20)
|
|
Senior Secured First Lien Debt
|
|
881
|
|
|
—
|
|
|
4,164
|
|
|
—
|
|
|
—
|
|
|
(425
|
)
|
|
3,739
|
|
|||||||
|
Twentyeighty, Inc. - Class A Common Equity
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Twentyeighty, Inc. - Revolver (TL 3/20)
|
|
Senior Secured First Lien Debt
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
THL Credit Greenway Fund II LLC
|
|
Equity/Other
|
|
957
|
|
|
12,850
|
|
|
—
|
|
|
(1,849
|
)
|
|
—
|
|
|
372
|
|
|
11,373
|
|
|||||||
|
WhiteHorse VIII, Ltd. CLO Subordinated Notes
|
|
Collateralized Securities
|
|
712
|
|
|
12,563
|
|
|
—
|
|
|
(2,859
|
)
|
|
—
|
|
|
(943
|
)
|
|
8,761
|
|
|||||||
|
World Business Lenders, LLC - Preferred Stock
|
|
Equity/Other
|
|
—
|
|
|
—
|
|
|
4,441
|
|
|
—
|
|
|
—
|
|
|
(682
|
)
|
|
3,759
|
|
|||||||
|
Total Affiliate Investments
|
|
|
|
$
|
21,063
|
|
|
$
|
354,238
|
|
|
$
|
90,556
|
|
|
$
|
(188,049
|
)
|
|
$
|
(20,019
|
)
|
|
$
|
75
|
|
|
$
|
236,801
|
|
|
Total Control & Affiliate Investments
|
|
|
|
$
|
57,649
|
|
|
$
|
608,876
|
|
|
$
|
203,347
|
|
|
$
|
(202,463
|
)
|
|
$
|
(21,721
|
)
|
|
$
|
(959
|
)
|
|
$
|
587,080
|
|
|
(1)
|
The principal amount and ownership detail are shown in the consolidated schedules of investments.
|
|
(2)
|
This investment was not deemed significant under Regulation S-X as of December 31, 2017.
|
|
(3)
|
For the year ended December 31, 2017, the Company had determined that it must include audited financial statements of Kahala Ireland Opco Designated Activity Company because it was a controlled investment and was required to do so under SEC Rule 3-09. The audited financial statements were attached as Exhibit 99.1 in the Company's 2017 Form 10-K.
|
|
(4)
|
This investment was not deemed significant under Regulation S-X as of
December 31, 2017
.
|
|
(5)
|
Not all Related Fee Agreements shown on the consolidated schedules of investments are Affiliated Investments.
|
|
(6)
|
Gross of deferred taxes.
|
|
(7)
|
Investment no longer held as of
December 31, 2017
.
|
|
•
|
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 March 31, 2018:
|
|
|||
|
|
Investment Portfolio
|
$
|
2,626.9
|
|
|
|
Net Assets attributable to Business Development Corporation of America
|
1,472.6
|
|
|
|
|
Debt (net of deferred financing costs)
|
1,164.1
|
|
|
|
|
Net Asset Value per share
|
8.26
|
|
|
|
|
|
|
||
|
Portfolio Activity for the Three Months Ended March 31, 2018:
|
|
|||
|
|
Cost of investments purchased during period, including PIK
|
285.8
|
|
|
|
|
Sales, repayments and other exits during the period
|
160.6
|
|
|
|
|
Number of portfolio companies at end of period
|
168
|
|
|
|
|
|
|
||
|
Operating results for the Three Months Ended March 31, 2018:
|
|
|||
|
|
Net investment income per share
|
0.15
|
|
|
|
|
Distributions declared per share
|
(0.16
|
)
|
|
|
|
Net increase in net assets resulting from operations per share
|
0.12
|
|
|
|
|
Net investment income
|
26.2
|
|
|
|
|
Net realized and unrealized gain (loss) net of deferred taxes
|
(4.2
|
)
|
|
|
|
Net increase in net assets resulting from operations
|
22.0
|
|
|
|
|
March 31, 2018
|
||||
|
|
Percentage of
Total Portfolio
|
|
Weighted Average Current Yield for Total Portfolio
(1)
|
||
|
Senior Secured First Lien Debt
|
72.4
|
%
|
|
8.6
|
%
|
|
Senior Secured Second Lien Debt
|
9.0
|
|
|
10.3
|
|
|
Subordinated Debt
|
4.9
|
|
|
10.6
|
|
|
Collateralized Securities
(2)
|
6.2
|
|
|
8.3
|
|
|
Equity/Other
|
7.5
|
|
|
N/A
|
|
|
Total
|
100.0
|
%
|
|
9.2
|
%
|
|
|
December 31, 2017
|
||||
|
|
Percentage of
Total Portfolio
|
|
Weighted Average Current Yield for Total Portfolio
(1)
|
||
|
Senior Secured First Lien Debt
|
71.0
|
%
|
|
8.7
|
%
|
|
Senior Secured Second Lien Debt
|
9.5
|
|
|
10.4
|
|
|
Subordinated Debt
|
3.8
|
|
|
13.0
|
|
|
Collateralized Securities
(2)
|
6.4
|
|
|
6.3
|
|
|
Equity/Other
|
9.3
|
|
|
N/A
|
|
|
Total
|
100.0
|
%
|
|
8.9
|
%
|
|
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 March 31,
|
|
For the Three Months Ended March 31,
|
||||
|
|
2018
|
|
2017
|
||||
|
Total investment income
|
$
|
58,504
|
|
|
$
|
56,672
|
|
|
Total expenses
|
32,085
|
|
|
29,264
|
|
||
|
Income tax expense, including excise tax
|
270
|
|
|
635
|
|
||
|
Net investment loss attributable to non-controlling interests
|
(5
|
)
|
|
3
|
|
||
|
Net investment income
|
$
|
26,154
|
|
|
$
|
26,770
|
|
|
|
For the Three Months Ended March 31,
|
|
For the Three Months Ended March 31,
|
||||
|
|
2018
|
|
2017
|
||||
|
Management fees
|
$
|
9,955
|
|
|
$
|
9,538
|
|
|
Incentive fee on income
|
4,611
|
|
|
6,367
|
|
||
|
Interest and debt fees
|
13,450
|
|
|
9,850
|
|
||
|
Professional fees
|
1,132
|
|
|
1,480
|
|
||
|
Other general and administrative
|
2,464
|
|
|
1,625
|
|
||
|
Administrative services
|
199
|
|
|
203
|
|
||
|
Insurance
|
1
|
|
|
6
|
|
||
|
Directors' fees
|
273
|
|
|
195
|
|
||
|
Total operating expenses
|
$
|
32,085
|
|
|
$
|
29,264
|
|
|
|
For the Three Months Ended March 31,
|
|
For the Three Months Ended March 31,
|
||||
|
|
2018
|
|
2017
|
||||
|
Net realized gain (loss)
|
|
|
|
||||
|
Control investments
|
$
|
394
|
|
|
$
|
—
|
|
|
Affiliate investments
|
(41,028
|
)
|
|
970
|
|
||
|
Non-affiliate investments
|
6,199
|
|
|
(11,741
|
)
|
||
|
Net realized gain on foreign currency transactions
|
26
|
|
|
—
|
|
||
|
Total net realized loss
|
(34,409
|
)
|
|
(10,771
|
)
|
||
|
Net change in unrealized appreciation (depreciation) on investments, net of deferred taxes
|
|
|
|
||||
|
Control investments
|
(4,309
|
)
|
|
(5,950
|
)
|
||
|
Affiliate investments
|
40,570
|
|
|
745
|
|
||
|
Non-affiliate investments
|
(6,345
|
)
|
|
8,781
|
|
||
|
Total net change in unrealized appreciation on investments, net of deferred taxes
|
29,916
|
|
|
3,576
|
|
||
|
Net change in unrealized (appreciation) depreciation attributable to non-controlling interests
|
315
|
|
|
(208
|
)
|
||
|
Net realized and unrealized loss
|
$
|
(4,178
|
)
|
|
$
|
(7,403
|
)
|
|
•
|
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 Three Months Ended March 31,
|
|
For the Three Months Ended March 31,
|
||||
|
|
2018
|
|
2017
|
||||
|
Distributions declared
|
$
|
28,727
|
|
|
$
|
38,176
|
|
|
Distributions paid
|
$
|
28,807
|
|
|
$
|
38,442
|
|
|
Portion of distributions paid in cash
|
$
|
18,640
|
|
|
$
|
23,544
|
|
|
Portion of distributions paid in DRIP shares
|
$
|
10,167
|
|
|
$
|
14,898
|
|
|
|
For the Three Months Ended March 31,
|
|
For the Three Months Ended March 31,
|
||||
|
|
2018
|
|
2017
|
||||
|
Monthly distributions
|
$
|
28,727
|
|
|
$
|
38,176
|
|
|
Total distributions
|
$
|
28,727
|
|
|
$
|
38,176
|
|
|
|
|
|
Payment Due by Period
|
||||||||||||||||
|
|
Total
|
|
Less than 1 year
|
|
1 - 3 years
|
|
3- 5 years
|
|
More than 5 years
|
||||||||||
|
Wells Fargo Credit Facility
(1)
|
$
|
266,052
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
266,052
|
|
|
$
|
—
|
|
|
Citi Credit Facility
(2)
|
356,003
|
|
|
—
|
|
|
356,003
|
|
|
—
|
|
|
—
|
|
|||||
|
UBS Credit Facility
(3)
|
232,500
|
|
|
232,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
2022 Notes
(4)
|
149,216
|
|
|
—
|
|
|
—
|
|
|
149,216
|
|
|
—
|
|
|||||
|
2020 Notes
(5)
|
99,236
|
|
|
—
|
|
|
99,236
|
|
|
—
|
|
|
—
|
|
|||||
|
JPMC PB Account
(6)
|
71,173
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71,173
|
|
|||||
|
Total contractual obligations
|
$
|
1,174,180
|
|
|
$
|
232,500
|
|
|
$
|
455,239
|
|
|
$
|
415,268
|
|
|
$
|
71,173
|
|
|
(1)
|
As of
March 31, 2018
, we had $133.9 million of unused borrowing capacity under the Wells Fargo Credit Facility, subject to borrowing base limits.
|
|
(2)
|
As of
March 31, 2018
, we had $44.0 million of unused borrowing capacity under the Citi Credit Facility, subject to borrowing base limits.
|
|
(3)
|
As of
March 31, 2018
, we had no unused borrowing capacity under the UBS Credit Facility, subject to borrowing base limits.
|
|
(4)
|
As of
March 31, 2018
, we had no unused borrowing capacity under the 2022 Notes.
|
|
(5)
|
As of
March 31, 2018
, we had no unused borrowing capacity under the 2020 Notes.
|
|
(6)
|
As of
March 31, 2018
, 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
|
|
|
(-) 100 Basis Points
|
|
(8.48
|
)%
|
|
Base Interest Rate
|
|
—
|
%
|
|
(+) 100 Basis Points
|
|
8.61
|
%
|
|
(+) 200 Basis Points
|
|
17.23
|
%
|
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price per Share
|
|
Cumulative Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)
|
|||||
|
January 1, 2018 through January 31, 2018
|
|
2,547,524
|
|
|
$
|
8.31
|
|
|
2,547,524
|
|
|
—
|
|
|
February 1, 2018 through February 28, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
March 1, 2018 through March 31, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/ Richard J. Byrne
Richard J. Byrne
|
|
Chief Executive Officer, President and Chairman of the Board of Directors
(Principal Executive Officer)
|
|
May 10, 2018
|
|
/s/ Corinne D. Pankovcin
Corinne D. Pankovcin
|
|
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|
|
May 10, 2018
|
|
THE BORROWER:
|
BDCA FUNDING I, LLC
|
|
By:
|
/s/Corinne D. Pankovcin
Name: Corinne D. Pankovcin Title: Chief Financial Officer |
|
THE SERVICER:
|
BUSINESS DEVELOPMENT CORPORATION OF AMERICA
|
|
By:
|
/s/Corinne D. Pankovcin
Name: Corinne D. Pankovcin Title: Chief Financial Officer |
|
THE SELLER:
|
BUSINESS DEVELOPMENT CORPORATION OF AMERICA
|
|
By:
|
/s/Corinne D. Pankovcin
Name: Corinne D. Pankovcin Title: Chief Financial Officer |
|
THE ADMINISTRATIVE AGENT:
|
WELLS FARGO BANK, N.A.
|
|
By:
|
/s/ Steve Sebo
Name: Steve Sebo Title: Vice President |
|
INSTITUTIONAL LENDER:
|
WELLS FARGO BANK, N.A.
|
|
By:
|
/s/ Matt Jensen
Name: Matt Jensen Title: Director |
|
INSTITUTIONAL LENDER:
|
STATE STREET BANK AND TRUST COMPANY
|
|
By:
|
/s/ Janet B. Nolin
Name: Janet B. Nolin Title: Vice President |
|
INSTITUTIONAL LENDER:
|
EVERBANK COMMERCIAL FINANCE, INC.
|
|
By:
|
/s/ Ed McGugan
Name: Ed McGugan Title: Managing Director |
|
INSTITUTIONAL LENDER:
|
ZB, N.A., DBA CALIFORNIA BANK & TRUST
|
|
By:
|
/s/ Brian Knapp
Name: Brian Knapp Title: Sr. Vice President |
|
INSTITUTIONAL LENDER:
|
NBH BANK
|
|
By:
|
/s/ Thomas J. Rohling
Name: Thomas J. Rohling Title: Managing Director |
|
INSTITUTIONAL LENDER:
|
RAYMOND JAMES BANK, N.A.
|
|
By:
|
/s/ Alex L. Rody
Name: Alex K. Rody Title: Senior Vice President |
|
THE COLLATERAL AGENT:
|
U.S. BANK NATIONAL ASSOCIATION
|
|
THE ACCOUNT BANK:
|
U.S. BANK NATIONAL ASSOCIATION
|
|
THE COLLATERAL CUSTODIAN:
|
U.S. BANK NATIONAL ASSOCIATION
|
|
ARTICLE I.
|
DEFINITIONS 1
|
|
Section 1.01
|
Certain Defined Terms 1
|
|
Section 1.02
|
Other Terms 35
|
|
Section 1.03
|
Computation of Time Periods 35
|
|
Section 1.04
|
Interpretation 35
|
|
ARTICLE II.
|
THE FACILITY 36
|
|
Section 2.01
|
Variable Funding Note and Advances 36
|
|
Section 2.02
|
Procedure for Advances 37
|
|
Section 2.03
|
Determination of Yield 39
|
|
Section 2.04
|
Remittance Procedures 39
|
|
Section 2.05
|
Instructions to the Collateral Agent and the Account Bank 43
|
|
Section 2.06
|
Borrowing Base Deficiency Payments 43
|
|
Section 2.07
|
Substitution and Sale of Loan Assets; Affiliate Transactions 44
|
|
Section 2.08
|
Payments and Computations, Etc 48
|
|
Section 2.09
|
Non-Usage Fee 49
|
|
Section 2.10
|
Increased Costs; Capital Adequacy 49
|
|
Section 2.11
|
Taxes 51
|
|
|
1
|
|
|
Section 2.12
|
Collateral Assignment of Agreements 52
|
|
Section 2.13
|
Grant of a Security Interest 53
|
|
Section 2.14
|
Evidence of Debt 53
|
|
Section 2.15
|
Survival of Representations and Warranties 53
|
|
Section 2.16
|
Release of Loan Assets 54
|
|
Section 2.17
|
Treatment of Amounts Received by the Borrower 54
|
|
Section 2.18
|
Prepayment; Termination 54
|
|
Section 2.19
|
Extension of Reinvestment Period 55
|
|
Section 2.20
|
Collections and Allocations 55
|
|
Section 2.21
|
Reinvestment of Principal Collections 57
|
|
Section 2.22
|
Additional Lenders 57
|
|
ARTICLE III.
|
CONDITIONS PRECEDENT 58
|
|
Section 3.01
|
Conditions Precedent to Effectiveness 58
|
|
Section 3.02
|
Conditions Precedent to All Advances 60
|
|
Section 3.03
|
Advances Do Not Constitute a Waiver 62
|
|
Section 3.04
|
Conditions to Pledges of Loan Assets 62
|
|
ARTICLE IV.
|
REPRESENTATIONS AND WARRANTIES 63
|
|
|
2
|
|
|
Section 4.01
|
Representations and Warranties of the Borrower 63
|
|
Section 4.02
|
Representations and Warranties of the Borrower Relating to the Agreement and the Collateral Portfolio 71
|
|
Section 4.03
|
Representations and Warranties of the Servicer 72
|
|
Section 4.04
|
Representations and Warranties of the Collateral Agent 76
|
|
Section 4.05
|
Representations and Warranties of each Lender 77
|
|
Section 4.06
|
Representations and Warranties of the Collateral Custodian 77
|
|
ARTICLE V.
|
GENERAL COVENANTS 78
|
|
Section 5.01
|
Affirmative Covenants of the Borrower 78
|
|
Section 5.02
|
Negative Covenants of the Borrower 84
|
|
Section 5.03
|
Affirmative Covenants of the Servicer 87
|
|
Section 5.04
|
Negative Covenants of the Servicer 91
|
|
Section 5.05
|
Affirmative Covenants of the Collateral Agent 93
|
|
Section 5.06
|
Negative Covenants of the Collateral Agent 93
|
|
Section 5.07
|
Affirmative Covenants of the Collateral Custodian 93
|
|
Section 5.08
|
Negative Covenants of the Collateral Custodian 94
|
|
ARTICLE VI.
|
ADMINISTRATION AND SERVICING OF CONTRACTS 94
|
|
Section 6.01
|
Appointment and Designation of the Servicer 94
|
|
|
3
|
|
|
Section 6.02
|
Duties of the Servicer 96
|
|
Section 6.03
|
Authorization of the Servicer 99
|
|
Section 6.04
|
Collection of Payments; Accounts 99
|
|
Section 6.05
|
Realization Upon Loan Assets 101
|
|
Section 6.06
|
Servicing Compensation 102
|
|
Section 6.07
|
Payment of Certain Expenses by Servicer 102
|
|
Section 6.08
|
Reports to the Administrative Agent; Account Statements; Servicing Information 102
|
|
Section 6.09
|
Annual Statement as to Compliance 104
|
|
Section 6.10
|
Annual Independent Public Accountant’s Servicing Reports 104
|
|
Section 6.11
|
The Servicer Not to Resign 104
|
|
ARTICLE VII.
|
EVENTS OF DEFAULT 105
|
|
Section 7.01
|
Events of Default 105
|
|
Section 7.02
|
Additional Remedies of the Administrative Agent 108
|
|
ARTICLE VIII.
|
INDEMNIFICATION 110
|
|
Section 8.01
|
Indemnities by the Borrower 110
|
|
Section 8.02
|
Indemnities by Servicer 113
|
|
Section 8.03
|
Legal Proceedings 115
|
|
|
4
|
|
|
Section 8.04
|
After-Tax Basis 116
|
|
ARTICLE IX.
|
THE ADMINISTRATIVE AGENT AND LENDER AGENTS 116
|
|
Section 9.01
|
The Administrative Agent 116
|
|
Section 9.02
|
The Lender Agents 120
|
|
ARTICLE X.
|
COLLATERAL AGENT 122
|
|
Section 10.01
|
Designation of Collateral Agent 122
|
|
Section 10.02
|
Duties of Collateral Agent 122
|
|
Section 10.03
|
Merger or Consolidation 124
|
|
Section 10.04
|
Collateral Agent Compensation 125
|
|
Section 10.05
|
Collateral Agent Removal 125
|
|
Section 10.06
|
Limitation on Liability 125
|
|
Section 10.07
|
Collateral Agent Resignation 126
|
|
ARTICLE XI.
|
MISCELLANEOUS 127
|
|
Section 11.01
|
Amendments and Waivers 127
|
|
Section 11.02
|
Notices, Etc 127
|
|
Section 11.03
|
No Waiver; Remedies 128
|
|
Section 11.04
|
Binding Effect; Assignability; Multiple Lenders 128
|
|
|
5
|
|
|
Section 11.05
|
Term of This Agreement 129
|
|
Section 11.06
|
GOVERNING LAW; JURY WAIVER 129
|
|
Section 11.07
|
Costs, Expenses and Taxes 129
|
|
Section 11.08
|
No Proceedings 130
|
|
Section 11.09
|
Recourse Against Certain Parties 130
|
|
Section 11.10
|
Execution in Counterparts; Severability; Integration 132
|
|
Section 11.11
|
Consent to Jurisdiction; Service of Process 132
|
|
Section 11.12
|
Characterization of Conveyances Pursuant to the Purchase and Sale Agreement 132
|
|
Section 11.13
|
Confidentiality 133
|
|
Section 11.14
|
Non-Confidentiality of Tax Treatment 135
|
|
Section 11.15
|
Waiver of Set Off 135
|
|
Section 11.16
|
Headings and Exhibits 135
|
|
Section 11.17
|
Ratable Payments 135
|
|
Section 11.18
|
Failure of Borrower or Servicer to Perform Certain Obligations 136
|
|
Section 11.19
|
Power of Attorney 136
|
|
Section 11.20
|
Delivery of Termination Statements, Releases, etc 136
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ARTICLE XII.
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COLLATERAL CUSTODIAN 136
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6
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Section 12.01
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Designation of Collateral Custodian 136
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Section 12.02
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Duties of Collateral Custodian 137
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Section 12.03
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Merger or Consolidation 139
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Section 12.04
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Collateral Custodian Compensation 140
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Section 12.05
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Collateral Custodian Removal 140
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Section 12.06
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Limitation on Liability 140
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Section 12.07
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Collateral Custodian Resignation 141
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Section 12.08
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Release of Documents 142
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Section 12.09
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Return of Required Loan Documents 142
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Section 12.10
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Access to Certain Documentation and Information Regarding the Collateral Portfolio; Audits of Servicer 143
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Section 12.11
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Collateral Custodian as Agent of Collateral Agent 143
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7
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SCHEDULE I
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Conditions Precedent Documents
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SCHEDULE II
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Prior Names, Tradenames, Fictitious Names and “Doing Business As” Names
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SCHEDULE III
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Eligibility Criteria
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SCHEDULE IV
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Agreed-Upon Procedures for Independent Public Accountants
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SCHEDULE V
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Loan Asset Schedule
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EXHIBIT A
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Form of Approval Notice
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EXHIBIT B
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Form of Assignment of Mortgage
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EXHIBIT C
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Form of Borrowing Base Certificate
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EXHIBIT D
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Form of Disbursement Request
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EXHIBIT E
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Form of Joinder Supplement
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where:
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PFR
BSL
= 1.65%;
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Percentage
BSL
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= Average
BSL
/ Average
AGG
;
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Percentage
LMML
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= Average
LMML
/ Average
AGG
;
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Percentage
TMML
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= Average
TMML
/ Average
AGG
;
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Average
BSL
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= (the aggregate Adjusted Borrowing Value of all Broadly Syndicated Loans excluding the Excess BSL Amount on the first day of the related Collection Period + the aggregate Adjusted Borrowing Value of all Broadly Syndicated Loans excluding the Excess BSL Amount on the last day of the related Collection Period) / 2
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Average
LMML
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= (the sum of the aggregate Adjusted Borrowing Value of all Large Middle Market Loans and the Excess BSL Amount, excluding the Excess Non-TMML Amount, on the first day of the related Collection Period + the sum of the aggregate Adjusted Borrowing Value of all Large Middle Market Loans and the Excess BSL Amount, excluding the Excess Non-TMML Amount on the last day of the related Collection Period) / 2
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Average
TMML
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= (the sum of the aggregate Adjusted Borrowing Value of all Traditional Middle Market Loans and the Excess Non-TMML Amount on the first day of the related Collection Period + the sum of the aggregate Adjusted Borrowing Value of all Traditional Middle Market
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Large Middle Market Loans and Traditional Middle Market Loans
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Net Senior
Leverage Ratio
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Minimum Facility Attachment Ratio
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Less than 4.25x
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2.90x
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4.25-5.00x
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2.80x
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Greater than 5.00-6.00x
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2.70x
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Greater than 6.00-7.00x
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2.60x
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Greater than 7.00-8.00x
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2.40x
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Over 8.00x
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0.00x
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Designated Loan
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Net Leverage Ratio
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Minimum Facility Attachment Ratio
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Less than 6.00x
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The lesser of (i) the Facility Attachment Ratio as of the applicable Cut-Off Date and (ii) 2.00x
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6.00x and Over
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0.00x
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THE BORROWER:
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BDCA FUNDING I, LLC
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By:
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Name: Corinne D. Pankovcin Title: Chief Financial Officer |
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THE SERVICER:
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BUSINESS DEVELOPMENT CORPORATION OF AMERICA
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By:
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Name: Corinne D. Pankovcin Title: Chief Financial Officer |
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THE SELLER:
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BUSINESS DEVELOPMENT CORPORATION OF AMERICA
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By:
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Name: Corinne D. Pankovcin Title: Chief Financial Officer |
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THE ADMINISTRATIVE AGENT:
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WELLS FARGO BANK, NATIONAL ASSOCIATION
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By:
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Name: Title: |
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INSTITUTIONAL LENDER:
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WELLS FARGO BANK, N.A.
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By:
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Name: Title: |
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INSTITUTIONAL LENDER:
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STATE STREET BANK AND TRUST COMPANY
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By:
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Name: Title: |
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INSTITUTIONAL LENDER:
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EVERBANK COMMERCIAL FINANCE, INC.
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By:
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Name: Title: |
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THE COLLATERAL AGENT:
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U.S. BANK NATIONAL ASSOCIATION
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By:
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Name: Jeffrey B. Stone Title: Vice President |
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THE ACCOUNT BANK:
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U.S. BANK NATIONAL ASSOCIATION
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By:
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Name: Jeffrey B. Stone Title: Vice President |
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THE COLLATERAL CUSTODIAN:
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U.S. BANK NATIONAL ASSOCIATION
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By:
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Name: Title: |
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1.
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I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2018
of Business Development Corporation of America;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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Date:
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May 10, 2018
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/s/ Richard J. Byrne
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Richard J. Byrne
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Chief Executive Officer, President, and
Chairman of the Board of Directors
(Principal Executive Officer) |
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1.
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I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2018
of Business Development Corporation of America;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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Date:
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May 10, 2018
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/s/ Corinne D. Pankovcin
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Corinne D. Pankovcin
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
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/s/ Richard J. Byrne
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Richard J. Byrne
Chief Executive Officer, President, and Chairman of the Board of Directors
(Principal Executive Officer)
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/s/ Corinne D. Pankovcin
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Corinne D. Pankovcin
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
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