x
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ANNUAL 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
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PART II
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PART III
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PART IV
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•
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Large pool of uninvested private equity capital likely to seek additional capital to support private investments. We believe there remains a large pool of uninvested private equity capital available to middle market companies. We expect that private equity firms will remain active investors in middle market companies and that these private equity firms will
|
•
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Consolidation among commercial banks has reduced their focus on middle market businesses. The commercial banks in the United States, which have traditionally been the primary source of capital to middle market companies, have experienced consolidation, loan losses, and stricter regulatory scrutiny, which has led to a significant tightening of credit standards and substantially reduced loan volume to the middle market. Many financial institutions that have historically loaned to middle market companies have failed or been acquired, and we believe that larger financial institutions are now more focused on syndicated lending to larger corporations and are allocating capital to business lines that generate fee income and involve less balance sheet risk. We believe this market dynamic provides us with numerous opportunities to originate new debt and equity investments in middle market companies.
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•
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Refinancing activities will provide continued opportunities to extend capital to middle market companies. A significant volume of senior secured and mezzanine debt is expected to come due over the next several years. As companies seek to refinance their debt, we believe this will create new financing opportunities for us.
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•
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Lower default rates and higher recovery rates in the middle market. Default rates remain relatively low, with generally higher recovery rates in the middle market. Middle market companies are generally over-equitized as compared to large cap companies.
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•
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Favorable Pricing Environment in the Loan Market. Lower valuation levels in certain situations, combined with reduced liquidity in the secondary loan market, have created opportunities to acquire relatively high yielding senior and subordinated debt, both secured and unsecured, at potentially attractive prices.
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•
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Utilize the experience and expertise of the principals of our Adviser and BSP. Certain principals of our Adviser and BSP have a broad network of contacts with financial sponsors, commercial and investment banks, and leaders within a number of industries that we believe produce significant proprietary investment opportunities outside the normal banking auction process.
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•
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Focus on middle market companies with stable cash flow. We believe that middle market lending is less competitive than the broadly syndicated loan market, and this is one factor that allows us to negotiate favorable investment terms. Such favorable terms include higher debt yields, more significant covenant protection and greater equity participation than typical of transactions involving larger companies. We generally invest in established companies with positive cash flow. We believe these companies possess better risk-adjusted return profiles than newer companies that are building management expertise or in the early stages of building a revenue base. These middle market companies represent a significant portion of the U.S. economy and often require substantial capital investment to grow their businesses.
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•
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Employ disciplined underwriting policies and rigorous portfolio management. We employ an extensive underwriting process that includes a review of a prospective portfolio company's competitive position, financial performance, and industry dynamics. We prepare a detailed investment memo and, in addition, we perform substantial due diligence on potential investments, and seek to invest with management teams and/or private equity sponsors who have proven capabilities in building value. As part of the monitoring process for portfolio companies, our Adviser analyzes monthly (if available), quarterly, and annual financial statements versus the previous periods and year, reviews financial projections, and may perform other procedures including meeting with management, attending board meetings and reviewing compliance certificates and covenants.
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•
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Focus on long-term credit performance and principal protection. We structure our customized loan investments on a relatively conservative basis with high cash yields, security interests (preferably first lien) where possible, cash origination fees, and appropriate leverage levels. We seek strong deal protection for our customized debt investments, including default penalties, information rights, board observation rights, and affirmative, negative and financial covenants, such as lien protection and prohibitions against change of control. We believe these protections reduce our risk of capital loss.
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•
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Diversification. We seek to diversify our portfolio broadly among companies in a multitude of different industries, thereby reducing the concentration of credit risk in any one company or sector of the economy. We cannot guarantee that we will be successful in this effort.
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•
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Company-specific research and analysis; and
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•
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An emphasis on capital preservation, low volatility, diversification, and minimization of downside risk.
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•
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A comprehensive analysis of company creditworthiness, including a quantitative and qualitative assessment of the company’s business;
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•
|
An evaluation of the management team and support from equity investors;
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•
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An assessment of the competitive landscape;
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•
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An analysis of business strategy and long-term industry trends; and
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•
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An in-depth examination of capital structure, financial results, and financial projections.
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•
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Established companies with a history of positive and stable operating cash flows. We seek to invest in established companies with sound historical financial performance. We typically focus on companies with a history of profitability.
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•
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Ability to exert meaningful influence. We target investment opportunities in which we will be the lead investor where we can add value through active participation. Our focus is typically on first lien investments.
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•
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Experienced management team. We will require that our portfolio companies have an experienced management team. We also seek to invest in companies that have a strong equity incentive program in place that properly aligns the interests of management with such company’s investors.
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•
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Strong franchises and sustainable competitive advantages. We seek to invest in companies with proven products and/ or services and strong regional or national operations.
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•
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Diverse customer bases and product offerings. We seek to invest in companies with diverse customer bases and product offerings.
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•
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Meeting with senior management to understand the business more fully and evaluate the ability of the senior management team;
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•
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Checking management backgrounds and references;
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•
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Performing a detailed review of financial performance, earnings, and potential for earnings growth;
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•
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Commissioning a quality of earnings report;
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•
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Visiting the headquarters and conducting other on site diligence;
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•
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Contacting customers and vendors to assess both business prospects and industry practices;
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•
|
Conducting a competitive analysis and comparing the company to its main competitors;
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•
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Researching industry and relevant publications to understand industry wide growth trends;
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•
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Assessing asset value and the ability of physical infrastructure and information systems to handle anticipated growth;
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•
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Investigating legal risks and financial and accounting systems;
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•
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Engaging third party experts and consultants to assist in the due diligence process; and
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•
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Building detailed projected financial models with an emphasis on downside scenarios.
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•
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Assessment of success in adhering to the portfolio company’s business plan and compliance with covenants;
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•
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Regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements, and accomplishments;
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•
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Attendance at and participation in board meetings of the portfolio company (if available); and
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•
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Review of monthly (if available), quarterly, and annual financial statements and financial projections for the portfolio company.
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Loan Rating
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Summary Description
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1
|
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Debt investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since the time of investment are favorable.
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2
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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”.
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3
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Performing debt investment requiring closer monitoring. Trends and risk factors show some deterioration.
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4
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Underperforming debt investment. Some loss of interest or dividend expected, but still expecting a positive return on investment. Trends and risk factors are negative.
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5
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Underperforming debt investment with expected loss of interest and some principal.
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December 31, 2019
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|
December 31, 2018
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||||||||||
Internal Performance Rating
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Investments at Fair Value
(in thousands) |
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Percentage of Total Investments
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|
Investments at Fair Value
(in thousands)
|
|
Percentage of Total Investments
|
||||||
1
|
|
$
|
79,597
|
|
|
3.1
|
%
|
|
$
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79,674
|
|
|
3.4
|
%
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2
|
|
1,420,445
|
|
|
55.8
|
%
|
|
1,140,960
|
|
|
48.9
|
%
|
||
3
|
|
697,714
|
|
|
27.4
|
%
|
|
767,671
|
|
|
32.9
|
%
|
||
4
|
|
49,804
|
|
|
2.0
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%
|
|
62,346
|
|
|
2.7
|
%
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||
5
|
|
40,288
|
|
|
1.6
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%
|
|
84,267
|
|
|
3.6
|
%
|
||
Not rated
|
|
258,336
|
|
|
10.1
|
%
|
|
199,796
|
|
|
8.5
|
%
|
||
Total
|
|
$
|
2,546,184
|
|
|
100.0
|
%
|
|
$
|
2,334,714
|
|
|
100.0
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%
|
•
|
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;
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•
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The independent valuation firm(s) conduct independent appraisals and make an independent assessment of the value of each investment; and
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•
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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).
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•
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the net asset value of our common stock disclosed in the most recent periodic report we filed with the SEC;
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•
|
our Adviser’s assessment of whether any material change in the net asset value of our common stock has occurred (including through the realization of net gains on the sale of our portfolio investments) from the period beginning on the date of the most recently disclosed net asset value to the period ending two days prior to the date of the closing on and sale of our common stock; and
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•
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the magnitude of the difference between the net asset value disclosed in the most recent periodic report we filed with the SEC and our Adviser’s assessment of any material change in the net asset value since the date of the most recently disclosed net asset value, and the offering price of the shares of our common stock at the date of closing.
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•
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Determines the composition and allocation of our portfolio, the nature and timing of the changes in our portfolio, and the manner of implementing such changes;
|
•
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Identifies, evaluates, and negotiates the structure of the investments we make;
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•
|
Executes, monitors, and services our investments;
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•
|
Determines the securities and other assets that we will purchase, retain, or sell;
|
•
|
Performs due diligence on prospective portfolio companies; and
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•
|
Provides us with such other investment advisory, research and related services as we may, from time to time, reasonably require for the investment of our funds.
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•
|
No incentive fee on income is payable to the Adviser in any calendar quarter in which our 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 our 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) is payable to the Adviser. This portion of our 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 our Pre-Incentive Fee Net Investment Income when our Pre-Incentive Fee Net Investment Income reaches 2.1875% (8.75% annualized) in any calendar quarter; and
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•
|
For any quarter in which our Pre-Incentive Fee Net Investment Income exceeds 2.1875% (8.75% annualized), the incentive fee on income equals 20% of the amount of our Pre-Incentive Fee Net Investment Income, as the Preferred Return and catch-up will have been achieved.
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•
|
expenses deemed to be “organization and offering expenses” of the Company for purposes of Conduct Rule 2310(a)(12) of the Financial Industry Regulatory Authority, or FINRA;
|
•
|
amounts paid to third parties for administrative services;
|
•
|
amounts paid to third party experts relating to the investigation and monitoring of our investments;
|
•
|
the cost of calculating our net asset value;
|
•
|
the cost of effecting sales and repurchases of shares of our common stock and other securities;
|
•
|
management and incentive fees payable pursuant to the Investment Advisory Agreement;
|
•
|
fees payable to third parties relating to, or associated with, making investments and valuing investments (including third-party valuation firms);
|
•
|
transfer agent and custodial fees;
|
•
|
fees and expenses associated with marketing efforts (including attendance at investment conferences and similar events);
|
•
|
federal and state registration fees;
|
•
|
any exchange listing fees;
|
•
|
federal, state, and local taxes;
|
•
|
independent directors’ fees and expenses;
|
•
|
brokerage commissions;
|
•
|
costs of proxy statements;
|
•
|
stockholders’ reports and notices;
|
•
|
costs of preparing government filings, including periodic and current reports with the SEC;
|
•
|
fidelity bond, liability insurance, and other insurance premiums;
|
•
|
printing and mailing; and
|
•
|
independent accountants and outside legal costs.
|
a.
|
is organized under the laws of, and has its principal place of business in, the United States;
|
b.
|
is not an investment company (other than a small business investment company wholly owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and
|
c.
|
satisfies any of the following:
|
i.
|
does not have any class of securities that is traded on a national securities exchange;
|
ii.
|
has a class of securities listed on a national securities exchange, but has an aggregate market value of outstanding voting and non-voting common equity of less than $250 million;
|
iii.
|
is controlled by a BDC or a group of companies including a BDC and the BDC has an affiliated person who is a director of the eligible portfolio company; or
|
iv.
|
is a small and solvent company having total assets of not more than $4.0 million and capital and surplus of not less than $2.0 million
|
•
|
result in misstated financial reports, violations of loan covenants, missed reporting deadlines;
|
•
|
affect our ability to properly monitor our compliance with the rules and regulations regarding our qualification as a RIC;
|
•
|
result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of, proprietary, confidential, sensitive, or otherwise valuable information, which others could use to compete against us or for disruptive, destructive, or otherwise harmful purposes and outcomes;
|
•
|
result in liability to us for claims by stockholders and third-parties;
|
•
|
require significant management attention and resources to remedy any damages that result; or
|
•
|
adversely impact our reputation among investors.
|
Assumed Return on Our Portfolio (net of expenses)
|
|
(10)%
|
|
(5)%
|
|
—%
|
|
5%
|
|
10%
|
Corresponding return to stockholders (1)
|
|
(24.28)%
|
|
(14.34)%
|
|
(4.41)%
|
|
5.53%
|
|
15.47%
|
•
|
The Annual Distribution Requirement for a RIC will be satisfied if we distribute to our stockholders on an annual basis at least 90% of our net ordinary income and net short-term capital gain in excess of net long-term capital loss, if any. We may be subject to corporate-level U.S. federal income tax on any of our undistributed income or gain. Additionally, we will be subject to a 4% nondeductible federal excise tax to the extent that we do not satisfy certain additional minimum distribution requirements on a calendar-year basis. Because we use debt financing, we are subject to an asset coverage ratio requirement under the 1940 Act and may in the future become subject to certain financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the distribution requirements. If we are unable to obtain cash from other sources, we could fail to qualify for RIC tax treatment and thus become subject to corporate-level income tax.
|
•
|
The income source requirement will be satisfied if we obtain at least 90% of our gross income for each year from dividends, interest, gains from the sale of stock or securities, or similar sources.
|
•
|
The asset diversification requirement will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. To satisfy this requirement, at least 50% of the value of our assets must consist of cash, cash equivalents, U.S. Government securities, securities of other RICs, and other acceptable securities; and no more than 25% of the value of our assets can be invested in the securities, other than U.S. Government securities or securities of other RICs, of one issuer, of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or of certain “qualified publicly traded partnerships.” Failure to meet these requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC status. Because most of our investments will be in private companies, and therefore will be relatively illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses.
|
Title of Class
|
|
Amount Authorized
|
|
Amount Issued
|
Common Stock, par value $0.001 per share
|
|
450,000,000
|
|
215,850,546
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total 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, 2019 to March 31, 2019
|
|
2,241,000
|
|
|
$
|
8.20
|
|
|
2,241,000
|
|
|
—
|
|
April 1, 2019 to June 30, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
July 1, 2019 to September 30, 2019
|
|
2,199,337
|
|
|
$
|
7.96
|
|
|
2,199,337
|
|
|
—
|
|
October 1, 2019 to December 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
|
4,440,337
|
|
|
|
|
4,440,337
|
|
|
|
|
As of and For the Year Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||
Consolidated Statements of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total investment income
|
$
|
244,505
|
|
|
$
|
237,012
|
|
|
$
|
223,820
|
|
|
$
|
229,658
|
|
|
$
|
195,846
|
|
Total expenses net of expense waivers (1)
|
134,477
|
|
|
131,997
|
|
|
116,161
|
|
|
108,521
|
|
|
81,690
|
|
|||||
Income tax expense, including excise tax
|
1,771
|
|
|
1,605
|
|
|
1,619
|
|
|
1,140
|
|
|
—
|
|
|||||
Net investment gain attributable to non-controlling interests
|
9
|
|
|
25
|
|
|
29
|
|
|
19
|
|
|
—
|
|
|||||
Net investment income
|
108,248
|
|
|
103,385
|
|
|
106,011
|
|
|
119,978
|
|
|
114,156
|
|
|||||
Net realized and unrealized loss on investments, net of deferred taxes
|
(11,378
|
)
|
|
(75,292
|
)
|
|
(27,651
|
)
|
|
(26,892
|
)
|
|
(103,576
|
)
|
|||||
Net change in unrealized appreciation (depreciation) attributable to non-controlling interests
|
(3,017
|
)
|
|
(840
|
)
|
|
29
|
|
|
1,316
|
|
|
(2,527
|
)
|
|||||
Net change in unrealized appreciation (depreciation) from forward currency exchange contracts
|
(1,381
|
)
|
|
993
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net increase in net assets resulting from operations
|
$
|
92,472
|
|
|
$
|
28,246
|
|
|
$
|
78,389
|
|
|
$
|
94,402
|
|
|
$
|
8,053
|
|
Consolidated Per Share Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net investment income
|
$
|
0.57
|
|
|
$
|
0.57
|
|
|
$
|
0.59
|
|
|
$
|
0.67
|
|
|
$
|
0.66
|
|
Net realized and unrealized loss on investments, net of deferred taxes
|
$
|
(0.07
|
)
|
|
$
|
(0.41
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.60
|
)
|
Net increase in net assets resulting from operations
|
$
|
0.49
|
|
|
$
|
0.16
|
|
|
$
|
0.44
|
|
|
$
|
0.52
|
|
|
$
|
0.05
|
|
Distributions declared
|
$
|
0.65
|
|
|
$
|
0.65
|
|
|
$
|
0.76
|
|
|
$
|
0.87
|
|
|
$
|
0.87
|
|
Consolidated Statements of Assets and Liabilities Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
2,640,530
|
|
|
$
|
2,463,324
|
|
|
$
|
2,652,514
|
|
|
$
|
2,616,306
|
|
|
$
|
2,490,755
|
|
Borrowings outstanding
|
$
|
1,095,042
|
|
|
$
|
896,678
|
|
|
$
|
1,041,149
|
|
|
$
|
915,497
|
|
|
$
|
842,238
|
|
Total net assets
|
$
|
1,462,683
|
|
|
$
|
1,492,719
|
|
|
$
|
1,494,516
|
|
|
$
|
1,529,734
|
|
|
$
|
1,610,485
|
|
Other data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total return (2)
|
6.60
|
%
|
|
1.96
|
%
|
|
5.24
|
%
|
|
6.02
|
%
|
|
0.67
|
%
|
|||||
Number of portfolio company investments at year end
|
227
|
|
|
204
|
|
|
157
|
|
|
135
|
|
|
125
|
|
|||||
Value of investments at year end
|
$
|
2,546,184
|
|
|
$
|
2,334,714
|
|
|
$
|
2,503,523
|
|
|
$
|
2,394,083
|
|
|
$
|
2,311,281
|
|
Weighted average yield on investments at year end
|
8.9
|
%
|
|
9.8
|
%
|
|
8.5
|
%
|
|
9.7
|
%
|
|
9.5
|
%
|
•
|
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.
|
(Dollars in millions, except per share amounts)
|
|
|||
At December 31, 2019:
|
|
|||
|
Investment Portfolio
|
$
|
2,546.2
|
|
|
Net assets
|
1,462.7
|
|
|
|
Debt (net of deferred financing costs)
|
1,083.8
|
|
|
|
Net asset value per share
|
7.69
|
|
|
|
|
|
||
Portfolio Activity for the Year Ended December 31, 2019:
|
|
|||
|
Cost of investments purchased during period, including PIK
|
1,002.2
|
|
|
|
Sales, repayments, and other exits during the period
|
786.8
|
|
|
|
Number of portfolio companies at end of period
|
227
|
|
|
|
|
|
||
Operating results for the Year Ended December 31, 2019:
|
|
|||
|
Net investment income per share
|
0.57
|
|
|
|
Distributions declared per share
|
0.65
|
|
|
|
Net increase in net assets resulting from operations per share
|
0.49
|
|
|
|
Net investment income
|
108.2
|
|
|
|
Net realized and unrealized loss, net of deferred taxes
|
(15.8
|
)
|
|
|
Net increase in net assets resulting from operations
|
92.5
|
|
|
December 31, 2019
|
||||
|
Percentage of
Total Portfolio
|
|
Weighted Average Current Yield for Total Portfolio (1)
|
||
Senior Secured First Lien Debt
|
69.3
|
%
|
|
8.5
|
%
|
Senior Secured Second Lien Debt
|
12.0
|
|
|
12.3
|
|
Subordinated Debt
|
4.2
|
|
|
11.3
|
|
Collateralized Securities (2)
|
4.3
|
|
|
10.1
|
|
Equity/Other (3)
|
10.2
|
|
|
6.3
|
|
Total
|
100.0
|
%
|
|
8.9
|
%
|
|
December 31, 2018
|
||||
|
Percentage of
Total Portfolio
|
|
Weighted Average Current Yield for Total Portfolio (1)
|
||
Senior Secured First Lien Debt
|
68.3
|
%
|
|
9.6
|
%
|
Senior Secured Second Lien Debt
|
11.8
|
|
|
12.3
|
|
Subordinated Debt
|
5.9
|
|
|
10.8
|
|
Collateralized Securities (2)
|
5.4
|
|
|
10.3
|
|
Equity/Other (3)
|
8.6
|
|
|
6.6
|
|
Total
|
100.0
|
%
|
|
9.8
|
%
|
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 years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Total investment income
|
$
|
244,505
|
|
|
$
|
237,012
|
|
|
$
|
223,820
|
|
Total expenses
|
134,477
|
|
|
131,997
|
|
|
116,161
|
|
|||
Income tax expense, including excise tax
|
1,771
|
|
|
1,605
|
|
|
1,619
|
|
|||
Net investment gain attributable to non-controlling interests
|
9
|
|
|
25
|
|
|
29
|
|
|||
Net investment income
|
$
|
108,248
|
|
|
$
|
103,385
|
|
|
$
|
106,011
|
|
|
For the years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Management fees
|
$
|
39,837
|
|
|
$
|
39,828
|
|
|
$
|
39,068
|
|
Incentive fee on income
|
27,062
|
|
|
21,681
|
|
|
19,707
|
|
|||
Interest and debt fees
|
55,312
|
|
|
55,270
|
|
|
43,851
|
|
|||
Professional fees
|
3,553
|
|
|
6,048
|
|
|
4,726
|
|
|||
Other general and administrative
|
6,911
|
|
|
7,256
|
|
|
7,047
|
|
|||
Administrative services
|
788
|
|
|
789
|
|
|
807
|
|
|||
Insurance
|
105
|
|
|
108
|
|
|
11
|
|
|||
Directors' fees
|
909
|
|
|
1,017
|
|
|
944
|
|
|||
Total operating expenses
|
$
|
134,477
|
|
|
$
|
131,997
|
|
|
$
|
116,161
|
|
|
For the years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net realized gain (loss)
|
|
|
|
|
|
||||||
Control investments
|
$
|
(41,367
|
)
|
|
$
|
460
|
|
|
$
|
(1,702
|
)
|
Affiliate investments
|
(21,341
|
)
|
|
(39,852
|
)
|
|
(20,019
|
)
|
|||
Non-affiliate investments
|
(2,534
|
)
|
|
15,458
|
|
|
(31,414
|
)
|
|||
Net realized gain (loss) on foreign currency transactions
|
717
|
|
|
(376
|
)
|
|
—
|
|
|||
Total net realized loss
|
(64,525
|
)
|
|
(24,310
|
)
|
|
(53,135
|
)
|
|||
Net change in unrealized appreciation (depreciation) on investments
|
|
|
|
|
|
||||||
Control investments
|
68,265
|
|
|
8,897
|
|
|
(1,033
|
)
|
|||
Affiliate investments
|
7,652
|
|
|
5,538
|
|
|
75
|
|
|||
Non-affiliate investments
|
(23,757
|
)
|
|
(64,948
|
)
|
|
27,308
|
|
|||
Net change in deferred taxes
|
987
|
|
|
(469
|
)
|
|
(866
|
)
|
|||
Total net change in unrealized appreciation (depreciation) on investments, net of deferred taxes
|
53,147
|
|
|
(50,982
|
)
|
|
25,484
|
|
|||
Net change in unrealized appreciation (depreciation) attributable to non-controlling interests
|
(3,017
|
)
|
|
(840
|
)
|
|
29
|
|
|||
Net change in unrealized appreciation (depreciation) from forward currency exchange contracts
|
(1,381
|
)
|
|
993
|
|
|
—
|
|
|||
Net realized and unrealized loss
|
$
|
(15,776
|
)
|
|
$
|
(75,139
|
)
|
|
$
|
(27,622
|
)
|
•
|
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 years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Distributions declared
|
$
|
123,465
|
|
|
$
|
117,578
|
|
|
$
|
135,850
|
|
Distributions paid
|
$
|
123,468
|
|
|
$
|
116,995
|
|
|
$
|
139,443
|
|
Portion of distributions paid in cash
|
$
|
88,563
|
|
|
$
|
78,012
|
|
|
$
|
86,988
|
|
Portion of distributions paid in DRIP shares
|
$
|
34,905
|
|
|
$
|
38,983
|
|
|
$
|
52,455
|
|
|
For the years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Monthly distributions
|
$
|
123,465
|
|
|
$
|
117,578
|
|
|
$
|
135,850
|
|
Total distributions
|
$
|
123,465
|
|
|
$
|
117,578
|
|
|
$
|
135,850
|
|
|
|
|
Payment Due by Period
|
||||||||||||||||
|
Total
|
|
Less than 1 year
|
|
1 - 3 years
|
|
3- 5 years
|
|
More than 5 years
|
||||||||||
Wells Fargo Credit Facility (1)
|
$
|
436,652
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
436,652
|
|
|
$
|
—
|
|
Citi Credit Facility (2)
|
250,500
|
|
|
—
|
|
|
250,500
|
|
|
—
|
|
|
—
|
|
|||||
2024 Notes (3)
|
98,818
|
|
|
—
|
|
|
—
|
|
|
98,818
|
|
|
—
|
|
|||||
2023 Notes (4)
|
59,778
|
|
|
—
|
|
|
—
|
|
|
59,778
|
|
|
—
|
|
|||||
2022 Notes (5)
|
149,505
|
|
|
—
|
|
|
149,505
|
|
|
—
|
|
|
—
|
|
|||||
2020 Notes (6)
|
99,789
|
|
|
99,789
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
1,095,042
|
|
|
$
|
99,789
|
|
|
$
|
400,005
|
|
|
$
|
595,248
|
|
|
$
|
—
|
|
(1)
|
As of December 31, 2019, we had $163.3 million of unused borrowing capacity under the Wells Fargo Credit Facility, subject to borrowing base limits.
|
(2)
|
As of December 31, 2019, we had $149.5 million of unused borrowing capacity under the Citi Credit Facility, subject to borrowing base limits.
|
(3)
|
As of December 31, 2019, we had no unused borrowing capacity under the 2024 Notes.
|
(4)
|
As of December 31, 2019, we had no unused borrowing capacity under the 2023 Notes.
|
(5)
|
As of December 31, 2019, we had no unused borrowing capacity under the 2022 Notes.
|
(6)
|
As of December 31, 2019, we had no unused borrowing capacity under the 2020 Notes.
|
•
|
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
|
|
(-) 200 Basis Points
|
|
(16.37
|
)%
|
(-) 100 Basis Points
|
|
(8.19
|
)%
|
Base Interest Rate
|
|
—
|
%
|
(+) 100 Basis Points
|
|
8.19
|
%
|
(+) 200 Basis Points
|
|
16.37
|
%
|
Exhibit No.
|
Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit No.
|
Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit No.
|
Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS DEVELOPMENT CORPORATION OF AMERICA
|
|
|
By:
/s/ Richard J. Byrne
Name: Richard J. Byrne
Title: Chief Executive Officer, President and Chairman of the Board of Directors
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Richard J. Byrne
Richard J. Byrne
|
|
Chief Executive Officer, President, and Chairman of the Board of Directors
(Principal Executive Officer)
|
|
March 20, 2020
|
/s/ Nina Kang Baryski
Nina Kang Baryski
|
|
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|
|
March 20, 2020
|
/s/ Lee S. Hillman
Lee S. Hillman
|
|
Independent Director
|
|
March 20, 2020
|
/s/ Ronald J. Kramer
Ronald J. Kramer
|
|
Independent Director
|
|
March 20, 2020
|
/s/ Leslie D. Michelson
Leslie D. Michelson
|
|
Independent Director
|
|
March 20, 2020
|
/s/ Edward G. Rendell
Edward G. Rendell
|
|
Independent Director
|
|
March 20, 2020
|
/s/ Dennis M. Schaney
Dennis M. Schaney
|
|
Independent Director
|
|
March 20, 2020
|
|
|
|
Page
|
Audited Consolidated Financial Statements:
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
||||
Investments, at fair value:
|
|
|
|
||||
Control Investments, at fair value (amortized cost of $358,570 and $323,392, respectively)
|
$
|
406,517
|
|
|
$
|
307,680
|
|
Affiliate Investments, at fair value (amortized cost of $175,470 and $231,107, respectively)
|
129,526
|
|
|
176,560
|
|
||
Non-affiliate Investments, at fair value (amortized cost of $2,105,602 and $1,925,833, respectively)
|
2,010,141
|
|
|
1,850,474
|
|
||
Investments, at fair value (amortized cost of $2,639,642 and $2,480,332, respectively)
|
2,546,184
|
|
|
2,334,714
|
|
||
Cash and cash equivalents
|
46,470
|
|
|
96,692
|
|
||
Interest and dividends receivable
|
17,047
|
|
|
22,203
|
|
||
Receivable for unsettled trades
|
27,895
|
|
|
6,208
|
|
||
Prepaid expenses and other assets
|
2,934
|
|
|
2,514
|
|
||
Unrealized appreciation on forward currency exchange contracts
|
—
|
|
|
993
|
|
||
Total assets
|
$
|
2,640,530
|
|
|
$
|
2,463,324
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
|||
Debt (net of deferred financing costs of $11,288 and $12,156, respectively)
|
$
|
1,083,754
|
|
|
$
|
884,522
|
|
Stockholder distributions payable
|
10,503
|
|
|
10,506
|
|
||
Management fees payable
|
10,098
|
|
|
9,711
|
|
||
Incentive fee on income payable
|
6,513
|
|
|
5,690
|
|
||
Accounts payable and accrued expenses
|
14,765
|
|
|
15,153
|
|
||
Payable for unsettled trades
|
40,347
|
|
|
32,921
|
|
||
Interest and debt fees payable
|
11,425
|
|
|
12,008
|
|
||
Payable for common stock repurchases
|
—
|
|
|
5
|
|
||
Directors' fees payable
|
54
|
|
|
89
|
|
||
Unrealized depreciation on forward currency exchange contracts
|
388
|
|
|
—
|
|
||
Total liabilities
|
1,177,847
|
|
|
970,605
|
|
||
Commitments and contingencies (Note 7)
|
|
|
|
||||
|
|
|
|
||||
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;
215,850,546 issued and 190,207,517 outstanding at December 31, 2019, and 211,476,760 issued and 190,324,059 outstanding at December 31, 2018 |
190
|
|
|
190
|
|
||
Additional paid in capital
|
1,847,312
|
|
|
1,811,970
|
|
||
Total distributable loss
|
(384,819
|
)
|
|
(323,127
|
)
|
||
Total net assets attributable to Business Development Corporation of America
|
1,462,683
|
|
|
1,489,033
|
|
||
Net assets attributable to non-controlling interest
|
—
|
|
|
3,686
|
|
||
Total net assets
|
1,462,683
|
|
|
1,492,719
|
|
||
|
|
|
|
||||
Total liabilities and net assets
|
$
|
2,640,530
|
|
|
$
|
2,463,324
|
|
|
|
|
|
||||
Net asset value per share attributable to Business Development Corporation of America
|
$
|
7.69
|
|
|
$
|
7.82
|
|
|
For the years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Investment income:
|
|
|
|
|
|
||||||
From control investments
|
|
|
|
|
|
||||||
Interest income
|
$
|
22,817
|
|
|
$
|
22,349
|
|
|
$
|
24,648
|
|
Dividend income
|
14,850
|
|
|
10,263
|
|
|
11,938
|
|
|||
Fee and other income
|
5
|
|
|
20
|
|
|
—
|
|
|||
Total investment income from control investments
|
37,672
|
|
|
32,632
|
|
|
36,586
|
|
|||
From affiliate investments
|
|
|
|
|
|
||||||
Interest income
|
12,765
|
|
|
18,714
|
|
|
18,015
|
|
|||
Dividend income
|
4,482
|
|
|
3,566
|
|
|
2,932
|
|
|||
Fee and other income
|
35
|
|
|
10
|
|
|
116
|
|
|||
Total investment income from affiliate investments
|
17,282
|
|
|
22,290
|
|
|
21,063
|
|
|||
From non-affiliate investments
|
|
|
|
|
|
||||||
Interest income
|
182,885
|
|
|
175,196
|
|
|
158,626
|
|
|||
Dividend income
|
1,773
|
|
|
1,161
|
|
|
639
|
|
|||
Fee and other income
|
3,602
|
|
|
4,772
|
|
|
6,544
|
|
|||
Total investment income from non-affiliate investments
|
188,260
|
|
|
181,129
|
|
|
165,809
|
|
|||
Interest from cash and cash equivalents
|
1,291
|
|
|
961
|
|
|
362
|
|
|||
Total investment income
|
244,505
|
|
|
237,012
|
|
|
223,820
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
||||
Management fees
|
39,837
|
|
|
39,828
|
|
|
39,068
|
|
|||
Incentive fee on income
|
27,062
|
|
|
21,681
|
|
|
19,707
|
|
|||
Interest and debt fees
|
55,312
|
|
|
55,270
|
|
|
43,851
|
|
|||
Professional fees
|
3,553
|
|
|
6,048
|
|
|
4,726
|
|
|||
Other general and administrative
|
6,911
|
|
|
7,256
|
|
|
7,047
|
|
|||
Administrative services
|
788
|
|
|
789
|
|
|
807
|
|
|||
Insurance
|
105
|
|
|
108
|
|
|
11
|
|
|||
Directors' fees
|
909
|
|
|
1,017
|
|
|
944
|
|
|||
Total expenses
|
134,477
|
|
|
131,997
|
|
|
116,161
|
|
|||
|
|
|
|
|
|
||||||
Income tax expense, including excise tax
|
1,771
|
|
|
1,605
|
|
|
1,619
|
|
|||
Net investment gain attributable to non-controlling interests
|
9
|
|
|
25
|
|
|
29
|
|
|||
Net investment income
|
108,248
|
|
|
103,385
|
|
|
106,011
|
|
|||
|
|
|
|
|
|
||||||
Realized and unrealized gain (loss):
|
|
|
|
|
|
||||||
Net realized gain (loss)
|
|
|
|
|
|
||||||
Control investments
|
(41,367
|
)
|
|
460
|
|
|
(1,702
|
)
|
|||
Affiliate investments
|
(21,341
|
)
|
|
(39,852
|
)
|
|
(20,019
|
)
|
|||
Non-affiliate investments
|
(2,534
|
)
|
|
15,458
|
|
|
(31,414
|
)
|
|||
Net realized gain (loss) on foreign currency transactions
|
717
|
|
|
(376
|
)
|
|
—
|
|
|||
Total net realized loss
|
(64,525
|
)
|
|
(24,310
|
)
|
|
(53,135
|
)
|
|
For the years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net change in unrealized appreciation (depreciation) on investments
|
|
|
|
|
|
||||||
Control investments
|
68,265
|
|
|
8,897
|
|
|
(1,033
|
)
|
|||
Affiliate investments
|
7,652
|
|
|
5,538
|
|
|
75
|
|
|||
Non-affiliate investments
|
(23,757
|
)
|
|
(64,948
|
)
|
|
27,308
|
|
|||
Net change in deferred taxes
|
987
|
|
|
(469
|
)
|
|
(866
|
)
|
|||
Total net change in unrealized appreciation (depreciation) on investments, net of deferred taxes
|
53,147
|
|
|
(50,982
|
)
|
|
25,484
|
|
|||
Net change in unrealized appreciation (depreciation) attributable to non-controlling interests
|
(3,017
|
)
|
|
(840
|
)
|
|
29
|
|
|||
Net change in unrealized appreciation (depreciation) from forward currency exchange contracts
|
(1,381
|
)
|
|
993
|
|
|
—
|
|
|||
Net realized and unrealized loss
|
(15,776
|
)
|
|
(75,139
|
)
|
|
(27,622
|
)
|
|||
Net increase in net assets resulting from operations
|
$
|
92,472
|
|
|
$
|
28,246
|
|
|
$
|
78,389
|
|
|
|
|
|
|
|
||||||
Per share information - basic and diluted
|
|
|
|
|
|
||||||
Net investment income
|
$
|
0.57
|
|
|
$
|
0.57
|
|
|
$
|
0.59
|
|
Net increase in net assets resulting from operations
|
$
|
0.49
|
|
|
$
|
0.16
|
|
|
$
|
0.44
|
|
Weighted average shares outstanding
|
189,940,267
|
|
|
180,861,382
|
|
|
179,179,656
|
|
|
For the years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Operations:
|
|
|
|
|
|
||||||
Net investment income
|
$
|
108,248
|
|
|
$
|
103,385
|
|
|
$
|
106,011
|
|
Net realized loss from investments
|
(65,242
|
)
|
|
(23,934
|
)
|
|
(53,135
|
)
|
|||
Net realized gain (loss) on foreign currency transactions
|
717
|
|
|
(376
|
)
|
|
—
|
|
|||
Net change in unrealized appreciation (depreciation) on investments
|
52,160
|
|
|
(50,513
|
)
|
|
26,350
|
|
|||
Net change in deferred taxes
|
987
|
|
|
(469
|
)
|
|
(866
|
)
|
|||
Net change in unrealized appreciation (depreciation) attributable to non-controlling interests
|
(3,017
|
)
|
|
(840
|
)
|
|
29
|
|
|||
Net change in unrealized appreciation (depreciation) from forward currency exchange contracts
|
(1,381
|
)
|
|
993
|
|
|
—
|
|
|||
Net increase in net assets resulting from operations
|
92,472
|
|
|
28,246
|
|
|
78,389
|
|
|||
Stockholder distributions:
|
|
|
|
|
|
|
|||||
Distributions
|
(123,465
|
)
|
|
(117,578
|
)
|
|
(135,850
|
)
|
|||
Net decrease in net assets from stockholder distributions
|
(123,465
|
)
|
|
(117,578
|
)
|
|
(135,850
|
)
|
|||
Capital share transactions:
|
|
|
|
|
|
|
|||||
Issuance of common stock, net of issuance costs
|
—
|
|
|
90,000
|
|
|
—
|
|
|||
Acquisition of non-controlling interest
|
6,024
|
|
|
—
|
|
|
—
|
|
|||
Reinvestment of stockholder distributions
|
34,905
|
|
|
38,983
|
|
|
52,455
|
|
|||
Repurchases of common stock
|
(36,286
|
)
|
|
(42,313
|
)
|
|
(30,212
|
)
|
|||
Net increase in net assets from capital share transactions
|
4,643
|
|
|
86,670
|
|
|
22,243
|
|
|||
Total decrease in net assets, before non-controlling interest
|
(26,350
|
)
|
|
(2,662
|
)
|
|
(35,218
|
)
|
|||
Increase (decrease) in non-controlling interest
|
(3,686
|
)
|
|
865
|
|
|
—
|
|
|||
Total decrease in net assets
|
(30,036
|
)
|
|
(1,797
|
)
|
|
(35,218
|
)
|
|||
Net assets at beginning of year
|
1,492,719
|
|
|
1,494,516
|
|
|
1,529,734
|
|
|||
Net assets at end of year
|
$
|
1,462,683
|
|
|
$
|
1,492,719
|
|
|
$
|
1,494,516
|
|
|
|
|
|
|
|
||||||
Net asset value per common share attributable to Business Development Corporation of America
|
$
|
7.69
|
|
|
$
|
7.82
|
|
|
$
|
8.30
|
|
Common shares outstanding at end of year
|
190,207,517
|
|
|
190,324,059
|
|
|
179,733,998
|
|
|
For the years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net increase in net assets resulting from operations
|
$
|
92,472
|
|
|
$
|
28,246
|
|
|
$
|
78,389
|
|
Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||||||
Payment-in-kind interest income
|
(5,209
|
)
|
|
(5,516
|
)
|
|
(6,963
|
)
|
|||
Net accretion of discount on investments
|
(9,210
|
)
|
|
(8,685
|
)
|
|
(8,237
|
)
|
|||
Amortization of deferred financing costs
|
3,586
|
|
|
3,265
|
|
|
2,525
|
|
|||
Amortization of discount on unsecured notes
|
563
|
|
|
522
|
|
|
321
|
|
|||
Sales and repayments of investments
|
786,830
|
|
|
1,211,102
|
|
|
980,929
|
|
|||
Purchases of investments
|
(996,963
|
)
|
|
(1,102,539
|
)
|
|
(1,101,954
|
)
|
|||
Net realized loss from investments
|
65,242
|
|
|
23,934
|
|
|
53,135
|
|
|||
Net realized (gain) loss on foreign currency transactions
|
(717
|
)
|
|
376
|
|
|
—
|
|
|||
Net change in unrealized (appreciation) depreciation on investments
|
(52,160
|
)
|
|
50,513
|
|
|
(26,350
|
)
|
|||
Net change in unrealized (appreciation) depreciation from forward currency exchange contracts
|
1,381
|
|
|
(993
|
)
|
|
—
|
|
|||
(Increase) decrease in operating assets:
|
|
|
|
|
|
||||||
Interest and dividends receivable
|
5,156
|
|
|
(661
|
)
|
|
7,066
|
|
|||
Receivable for unsettled trades
|
(21,687
|
)
|
|
15,201
|
|
|
(17,116
|
)
|
|||
Prepaid expenses and other assets
|
(420
|
)
|
|
3,704
|
|
|
(6,166
|
)
|
|||
Increase (decrease) in operating liabilities:
|
|
|
|
|
|
||||||
Management fees payable
|
387
|
|
|
(221
|
)
|
|
361
|
|
|||
Incentive fee on income payable
|
823
|
|
|
1,132
|
|
|
1,421
|
|
|||
Accounts payable and accrued expenses
|
(388
|
)
|
|
4,016
|
|
|
2,683
|
|
|||
Payable for unsettled trades
|
7,426
|
|
|
(47,626
|
)
|
|
6,527
|
|
|||
Interest and debt fees payable
|
(583
|
)
|
|
397
|
|
|
2,005
|
|
|||
Directors' fees payable
|
(35
|
)
|
|
22
|
|
|
(66
|
)
|
|||
Net cash provided by (used in) operating activities
|
(123,506
|
)
|
|
176,189
|
|
|
(31,490
|
)
|
|||
|
|
|
|
|
|
||||||
Financing activities:
|
|
|
|
|
|
|
|||||
Proceeds from issuance of shares of common stock, net
|
—
|
|
|
90,000
|
|
|
—
|
|
|||
Acquisition of non-controlling interest
|
6,024
|
|
|
—
|
|
|
—
|
|
|||
Repurchases of common stock
|
(36,291
|
)
|
|
(42,308
|
)
|
|
(87,863
|
)
|
|||
Proceeds from debt
|
408,800
|
|
|
634,298
|
|
|
347,331
|
|
|||
Payments on debt
|
(211,000
|
)
|
|
(779,291
|
)
|
|
(222,000
|
)
|
|||
Payments of financing costs
|
(2,717
|
)
|
|
(4,495
|
)
|
|
(8,438
|
)
|
|||
Stockholder distributions
|
(88,563
|
)
|
|
(78,012
|
)
|
|
(86,988
|
)
|
|||
Increase (decrease) in non-controlling interest
|
(3,686
|
)
|
|
865
|
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
72,567
|
|
|
(178,943
|
)
|
|
(57,958
|
)
|
|||
|
|
|
|
|
|
||||||
Net decrease in cash and cash equivalents
|
(50,939
|
)
|
|
(2,754
|
)
|
|
(89,448
|
)
|
|||
Effect of foreign currency exchange rates
|
717
|
|
|
(376
|
)
|
|
—
|
|
|||
Cash and cash equivalents, beginning of year
|
96,692
|
|
|
99,822
|
|
|
189,270
|
|
|||
Cash and cash equivalents, end of year
|
$
|
46,470
|
|
|
$
|
96,692
|
|
|
$
|
99,822
|
|
Supplemental information:
|
|
|
|
|
|
|
|||||
Interest paid during the year
|
$
|
51,506
|
|
|
$
|
50,983
|
|
|
$
|
38,764
|
|
Taxes, including excise tax, paid during the year
|
$
|
1,533
|
|
|
$
|
956
|
|
|
$
|
1,063
|
|
Distributions reinvested
|
$
|
34,905
|
|
|
$
|
38,983
|
|
|
$
|
52,455
|
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Senior Secured First Lien Debt - 120.6% (b)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Abaco Systems Holding Corp. (c) (i)
|
|
Industrials
|
|
L+6.00% (8.01%), 12/7/2021
|
|
$
|
23,215
|
|
|
$
|
23,032
|
|
|
$
|
23,215
|
|
|
1.6
|
%
|
|
ABC Financial Intermediate, LLC (j)
|
|
Technology
|
|
L+4.25% (5.99%), 1/2/2025
|
|
14,603
|
|
|
14,550
|
|
|
14,493
|
|
|
1.0
|
%
|
||||
Accentcare, Inc. (c) (j)
|
|
Healthcare
|
|
L+5.00% (6.95%), 6/22/2026
|
|
13,472
|
|
|
13,347
|
|
|
13,346
|
|
|
0.9
|
%
|
||||
Acrisure, LLC (i) (j)
|
|
Financials
|
|
L+4.25% (6.19%), 11/22/2023
|
|
20,263
|
|
|
20,255
|
|
|
20,288
|
|
|
1.4
|
%
|
||||
AHP Health Partners, Inc. (i)
|
|
Healthcare
|
|
L+4.50% (6.30%), 6/30/2025
|
|
19,886
|
|
|
19,739
|
|
|
20,016
|
|
|
1.4
|
%
|
||||
Aldevron, LLC (i)
|
|
Healthcare
|
|
L+4.25% (6.19%), 10/13/2026
|
|
11,370
|
|
|
11,260
|
|
|
11,484
|
|
|
0.8
|
%
|
||||
Aleris International, Inc. (j)
|
|
Industrials
|
|
L+4.75% (6.55%), 2/27/2023
|
|
21,095
|
|
|
20,987
|
|
|
21,085
|
|
|
1.4
|
%
|
||||
Allied Universal Security Services, LLC (j)
|
|
Business Services
|
|
L+4.25% (6.05%), 7/10/2026
|
|
6,066
|
|
|
6,010
|
|
|
6,097
|
|
|
0.4
|
%
|
||||
Allied Universal Security Services, LLC (j)
|
|
Business Services
|
|
L+4.25% (6.05%), 7/10/2026
|
|
601
|
|
|
601
|
|
|
604
|
|
|
0.0
|
%
|
||||
Alvogen Pharma US, Inc. (j)
|
|
Healthcare
|
|
L+4.75% (6.55%), 12/31/2023
|
|
12,818
|
|
|
12,767
|
|
|
10,871
|
|
|
0.7
|
%
|
||||
AM General, LLC (c) (i)
|
|
Industrials
|
|
L+7.25% (9.31%), 12/28/2021
|
|
1,626
|
|
|
1,626
|
|
|
1,626
|
|
|
0.1
|
%
|
||||
American Greetings Corp. (j)
|
|
Consumer
|
|
L+4.50% (6.30%), 4/5/2024
|
|
1,723
|
|
|
1,698
|
|
|
1,690
|
|
|
0.1
|
%
|
||||
AMI Entertainment Network, LLC (c) (i)
|
|
Media/Entertainment
|
|
L+6.00% (7.94%), 7/21/2022
|
|
3,667
|
|
|
3,618
|
|
|
3,618
|
|
|
0.3
|
%
|
||||
AMI Entertainment Network, LLC (c) (i)
|
|
Media/Entertainment
|
|
L+6.00% (7.94%), 7/21/2022
|
|
12,983
|
|
|
12,851
|
|
|
12,809
|
|
|
0.9
|
%
|
||||
AP Gaming I, LLC (a) (j)
|
|
Gaming/Lodging
|
|
L+3.50% (5.30%), 2/15/2024
|
|
7,621
|
|
|
7,616
|
|
|
7,640
|
|
|
0.5
|
%
|
||||
AP NMT Acquisition B.V. (a) (j)
|
|
Media/Entertainment
|
|
L+5.75% (7.84%), 8/13/2021
|
|
5,831
|
|
|
5,839
|
|
|
5,842
|
|
|
0.4
|
%
|
||||
Aq Carver Buyer, Inc. (c) (i)
|
|
Business Services
|
|
L+5.00% (6.94%), 9/23/2025
|
|
9,391
|
|
|
8,656
|
|
|
9,298
|
|
|
0.6
|
%
|
||||
AqGen Ascensus, Inc. (j)
|
|
Business Services
|
|
L+4.00% (5.94%), 12/5/2022
|
|
9,392
|
|
|
9,383
|
|
|
9,398
|
|
|
0.6
|
%
|
||||
AqGen Ascensus, Inc. (j)
|
|
Business Services
|
|
L+4.25% (6.05%), 12/5/2022
|
|
7,980
|
|
|
7,923
|
|
|
8,020
|
|
|
0.6
|
%
|
||||
Arch Global Precision, LLC (c) (i)
|
|
Industrials
|
|
L+4.75% (6.55%), 4/1/2026
|
|
8,660
|
|
|
8,591
|
|
|
8,626
|
|
|
0.6
|
%
|
||||
Athenahealth, Inc. (j)
|
|
Healthcare
|
|
L+4.50% (6.40%), 2/11/2026
|
|
12,792
|
|
|
12,632
|
|
|
12,840
|
|
|
0.9
|
%
|
||||
Avaya Holdings Corp. (a) (j)
|
|
Technology
|
|
L+4.25% (5.99%), 12/16/2024
|
|
20,906
|
|
|
20,763
|
|
|
20,477
|
|
|
1.4
|
%
|
||||
Aveanna Healthcare, LLC (c) (j)
|
|
Healthcare
|
|
L+5.50% (7.30%), 3/18/2024
|
|
6,021
|
|
|
5,807
|
|
|
5,648
|
|
|
0.4
|
%
|
||||
Aveanna Healthcare, LLC (c) (j)
|
|
Healthcare
|
|
L+4.25% (6.05%), 3/18/2024
|
|
784
|
|
|
746
|
|
|
721
|
|
|
0.0
|
%
|
||||
Axiom Global, Inc. (c) (i)
|
|
Business Services
|
|
L+4.75% (6.85%), 10/1/2026
|
|
10,974
|
|
|
10,868
|
|
|
10,869
|
|
|
0.7
|
%
|
||||
BBB Industries, LLC (j)
|
|
Transportation
|
|
L+4.50% (6.30%), 8/1/2025
|
|
11,142
|
|
|
11,100
|
|
|
10,826
|
|
|
0.7
|
%
|
||||
BCP Raptor, LLC (j)
|
|
Energy
|
|
L+4.25% (6.05%), 6/24/2024
|
|
19,033
|
|
|
18,903
|
|
|
17,511
|
|
|
1.2
|
%
|
||||
BCP Renaissance, LLC (j)
|
|
Energy
|
|
L+3.50% (5.44%), 10/31/2024
|
|
3,420
|
|
|
3,408
|
|
|
3,022
|
|
|
0.2
|
%
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (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
|
|
L+9.00% (10.91%), 11/30/2021
|
|
$
|
13,050
|
|
|
$
|
12,946
|
|
|
$
|
12,854
|
|
|
0.9
|
%
|
|
Black Mountain Sand, LLC (c)
|
|
Energy
|
|
L+9.00% (11.10%), 11/30/2021
|
|
12,606
|
|
|
12,516
|
|
|
12,417
|
|
|
0.9
|
%
|
||||
BMC Software Finance, Inc. (j)
|
|
Technology
|
|
L+4.25% (6.05%), 10/2/2025
|
|
22,013
|
|
|
21,831
|
|
|
21,741
|
|
|
1.5
|
%
|
||||
Bomgar Corp. (j)
|
|
Technology
|
|
L+4.00% (5.93%), 4/18/2025
|
|
1,962
|
|
|
1,955
|
|
|
1,911
|
|
|
0.1
|
%
|
||||
BrightSpring Health Holdings Corp. (j)
|
|
Healthcare
|
|
L+4.50% (6.21%), 3/5/2026
|
|
4,975
|
|
|
4,939
|
|
|
4,997
|
|
|
0.3
|
%
|
||||
California Resources Corp. (a) (j)
|
|
Energy
|
|
L+4.75% (6.55%), 12/30/2022
|
|
12,259
|
|
|
12,110
|
|
|
10,926
|
|
|
0.7
|
%
|
||||
CareCentrix, Inc. (i) (j)
|
|
Healthcare
|
|
L+4.50% (6.44%), 4/3/2025
|
|
19,856
|
|
|
19,783
|
|
|
19,807
|
|
|
1.4
|
%
|
||||
CCW, LLC (c)
|
|
Food & Beverage
|
|
L+7.00% (8.81%), 3/22/2021
|
|
1,300
|
|
|
1,300
|
|
|
1,235
|
|
|
0.1
|
%
|
||||
CCW, LLC (c) (i)
|
|
Food & Beverage
|
|
L+7.00% (8.81%), 3/22/2021
|
|
26,725
|
|
|
26,608
|
|
|
25,389
|
|
|
1.7
|
%
|
||||
CDHA Holdings, LLC (c)
|
|
Healthcare
|
|
L+6.00% (7.95%), 8/24/2023
|
|
430
|
|
|
430
|
|
|
430
|
|
|
0.0
|
%
|
||||
CDHA Holdings, LLC (c)
|
|
Healthcare
|
|
L+6.00% (7.95%), 8/24/2023
|
|
553
|
|
|
546
|
|
|
553
|
|
|
0.0
|
%
|
||||
CDHA Holdings, LLC (c) (i)
|
|
Healthcare
|
|
L+6.00% (7.95%), 8/24/2023
|
|
15,601
|
|
|
15,430
|
|
|
15,601
|
|
|
1.1
|
%
|
||||
CDS U.S. Intermediate Holdings, Inc. (a) (i) (j)
|
|
Media/Entertainment
|
|
L+3.75% (5.69%), 7/8/2022
|
|
3,980
|
|
|
3,905
|
|
|
3,775
|
|
|
0.3
|
%
|
||||
Chloe Ox Parent, LLC (i)
|
|
Healthcare
|
|
L+4.50% (6.44%), 12/23/2024
|
|
11,478
|
|
|
11,394
|
|
|
11,406
|
|
|
0.8
|
%
|
||||
Clarion Events, Ltd. (a) (j)
|
|
Business Services
|
|
L+5.00% (6.91%), 9/30/2024
|
|
10,393
|
|
|
10,233
|
|
|
10,172
|
|
|
0.7
|
%
|
||||
Clover Technologies Group, LLC (c) (j)
|
|
Industrials
|
|
L+6.50% (8.30%), 5/8/2020
|
|
8,603
|
|
|
8,598
|
|
|
2,882
|
|
|
0.2
|
%
|
||||
CLP Health Services, Inc. (i)
|
|
Healthcare
|
|
L+5.00% (6.80%), 12/31/2026
|
|
9,480
|
|
|
9,338
|
|
|
9,409
|
|
|
0.6
|
%
|
||||
Cold Spring Brewing, Co. (c) (i)
|
|
Food & Beverage
|
|
L+4.75% (6.55%), 12/19/2025
|
|
9,888
|
|
|
9,789
|
|
|
9,789
|
|
|
0.7
|
%
|
||||
Community Care Health Network, LLC (j)
|
|
Healthcare
|
|
L+4.75% (6.55%), 2/17/2025
|
|
5,076
|
|
|
5,062
|
|
|
4,999
|
|
|
0.3
|
%
|
||||
CONSOL Energy, Inc. (a) (c) (j)
|
|
Industrials
|
|
L+4.50% (6.30%), 9/27/2024
|
|
4,120
|
|
|
4,102
|
|
|
3,794
|
|
|
0.3
|
%
|
||||
Conterra Ultra Broadband, LLC (c) (j)
|
|
Telecom
|
|
L+4.50% (6.30%), 4/30/2026
|
|
5,009
|
|
|
4,987
|
|
|
5,009
|
|
|
0.3
|
%
|
||||
Corfin Industries, LLC (c) (i)
|
|
Industrials
|
|
L+5.50% (7.43%), 2/15/2024
|
|
8,486
|
|
|
8,369
|
|
|
8,486
|
|
|
0.6
|
%
|
||||
Crown Subsea Communications Holding, Inc. (c) (j)
|
|
Industrials
|
|
L+6.00% (7.69%), 11/3/2025
|
|
3,328
|
|
|
3,300
|
|
|
3,328
|
|
|
0.2
|
%
|
||||
CRS-SPV, Inc. (c) (o)
|
|
Industrials
|
|
L+4.50% (6.30%), 3/8/2020
|
|
62
|
|
|
62
|
|
|
62
|
|
|
0.0
|
%
|
||||
Digicel Group, Ltd. (a)
|
|
Telecom
|
|
8.75%, 5/25/2024
|
|
10,607
|
|
|
10,556
|
|
|
10,342
|
|
|
0.7
|
%
|
||||
Dynasty Acqusition Co., Inc. (j)
|
|
Industrials
|
|
L+4.00% (5.94%), 4/6/2026
|
|
3,871
|
|
|
3,857
|
|
|
3,895
|
|
|
0.3
|
%
|
||||
Dynasty Acqusition Co., Inc. (j)
|
|
Industrials
|
|
L+4.00% (5.94%), 4/6/2026
|
|
2,081
|
|
|
2,074
|
|
|
2,094
|
|
|
0.1
|
%
|
||||
Eagle Rx, LLC (c) (i)
|
|
Healthcare
|
|
L+4.75% (6.44%), 12/31/2021
|
|
26,438
|
|
|
26,435
|
|
|
26,438
|
|
|
1.8
|
%
|
||||
Envision Healthcare Corp. (j)
|
|
Healthcare
|
|
L+3.75% (5.55%), 10/10/2025
|
|
3,970
|
|
|
3,806
|
|
|
3,376
|
|
|
0.2
|
%
|
||||
Florida Food Products, LLC (c)
|
|
Food & Beverage
|
|
L+6.75% (8.55%), 9/6/2023
|
|
1,416
|
|
|
1,416
|
|
|
1,399
|
|
|
0.1
|
%
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
||||||||
Florida Food Products, LLC (c) (i)
|
|
Food & Beverage
|
|
L+6.75% (8.55%), 9/6/2025
|
|
$
|
22,114
|
|
|
$
|
21,666
|
|
|
$
|
21,849
|
|
|
1.5
|
%
|
|
Foresight Energy, LLC (c) (j)
|
|
Industrials
|
|
L+5.75% (7.66%), 3/28/2022
|
|
5,919
|
|
|
5,888
|
|
|
2,721
|
|
|
0.2
|
%
|
||||
Frontier Communications Corp.
|
|
Telecom
|
|
8.00%, 4/1/2027
|
|
15,332
|
|
|
15,341
|
|
|
16,054
|
|
|
1.1
|
%
|
||||
Frontier Communications Corp. (j)
|
|
Telecom
|
|
L+3.75% (5.55%), 6/17/2024
|
|
9,819
|
|
|
9,643
|
|
|
9,853
|
|
|
0.7
|
%
|
||||
Gold Standard Baking, Inc. (c) (l)
|
|
Food & Beverage
|
|
L+6.50% (8.50%), 7/25/2022
|
|
3,049
|
|
|
2,273
|
|
|
1,220
|
|
|
0.1
|
%
|
||||
Green Energy Partners/Stonewall, LLC (c) (j)
|
|
Energy
|
|
L+5.50% (7.44%), 11/15/2021
|
|
1,000
|
|
|
998
|
|
|
922
|
|
|
0.1
|
%
|
||||
Green Energy Partners/Stonewall, LLC (j)
|
|
Energy
|
|
L+5.50% (7.44%), 11/15/2021
|
|
1,324
|
|
|
1,322
|
|
|
1,221
|
|
|
0.1
|
%
|
||||
HC2 Holdings, Inc. (c)
|
|
Industrials
|
|
11.50%, 12/1/2021
|
|
10,796
|
|
|
10,706
|
|
|
10,353
|
|
|
0.7
|
%
|
||||
HireRight, Inc. (i)
|
|
Business Services
|
|
L+3.75% (5.55%), 7/11/2025
|
|
2,955
|
|
|
2,933
|
|
|
2,927
|
|
|
0.2
|
%
|
||||
ICR Operations, LLC (c)
|
|
Business Services
|
|
L+5.00% (6.94%), 3/26/2024
|
|
98
|
|
|
96
|
|
|
98
|
|
|
0.0
|
%
|
||||
ICR Operations, LLC (c) (i)
|
|
Business Services
|
|
L+5.00% (6.94%), 3/26/2025
|
|
17,321
|
|
|
17,055
|
|
|
17,321
|
|
|
1.2
|
%
|
||||
Ideal Tridon Holdings, Inc. (c)
|
|
Industrials
|
|
L+5.75% (7.68%), 7/31/2024
|
|
46
|
|
|
46
|
|
|
45
|
|
|
0.0
|
%
|
||||
Ideal Tridon Holdings, Inc. (c)
|
|
Industrials
|
|
L+5.75% (7.54%), 7/31/2023
|
|
161
|
|
|
161
|
|
|
158
|
|
|
0.0
|
%
|
||||
Ideal Tridon Holdings, Inc. (c) (i)
|
|
Industrials
|
|
L+5.75% (7.70%), 7/31/2024
|
|
837
|
|
|
822
|
|
|
822
|
|
|
0.1
|
%
|
||||
Ideal Tridon Holdings, Inc. (c) (i)
|
|
Industrials
|
|
L+5.75% (7.68%), 7/31/2023
|
|
28,549
|
|
|
28,216
|
|
|
28,036
|
|
|
1.9
|
%
|
||||
IDERA, Inc. (j)
|
|
Technology
|
|
L+4.50% (6.30%), 6/28/2024
|
|
2,095
|
|
|
2,089
|
|
|
2,099
|
|
|
0.1
|
%
|
||||
Integral Ad Science, Inc. (c) (l)
|
|
Software/Services
|
|
L+7.25% (9.05%), 7/19/2024
|
|
15,302
|
|
|
15,070
|
|
|
15,302
|
|
|
1.1
|
%
|
||||
Integrated Efficiency Solutions, Inc. (c)
|
|
Industrials
|
|
L+10.25% (12.19%), 6/30/2022
|
|
3,658
|
|
|
3,658
|
|
|
3,344
|
|
|
0.2
|
%
|
||||
Intelsat Jackson Holdings, SA (a) (j)
|
|
Telecom
|
|
L+4.50% (6.43%), 1/2/2024
|
|
10,000
|
|
|
10,178
|
|
|
10,070
|
|
|
0.7
|
%
|
||||
Internap Corp. (c) (i) (l)
|
|
Business Services
|
|
L+7.00% (8.79%), 4/6/2022
|
|
11,789
|
|
|
11,779
|
|
|
7,533
|
|
|
0.5
|
%
|
||||
International Cruise & Excursions, Inc. (c) (i)
|
|
Business Services
|
|
L+5.25% (7.05%), 6/6/2025
|
|
5,001
|
|
|
4,958
|
|
|
5,002
|
|
|
0.3
|
%
|
||||
IPC Corp. (c) (j)
|
|
Software/Services
|
|
L+4.50% (6.43%), 8/6/2021
|
|
3,784
|
|
|
3,757
|
|
|
3,126
|
|
|
0.2
|
%
|
||||
Iri Holdings, Inc. (c) (j)
|
|
Business Services
|
|
L+4.50% (6.30%), 12/1/2025
|
|
4,950
|
|
|
4,908
|
|
|
4,826
|
|
|
0.3
|
%
|
||||
K2 Intelligence Holdings, Inc. (c) (i)
|
|
Business Services
|
|
L+4.75% (6.69%), 9/23/2024
|
|
11,667
|
|
|
11,446
|
|
|
11,445
|
|
|
0.8
|
%
|
||||
Kahala Ireland OpCo Designated Activity Company (a) (c) (l) (o)
|
|
Transportation
|
|
L+8.00% (13.00%), 12/22/2028
|
|
105,549
|
|
|
105,549
|
|
|
105,549
|
|
|
7.2
|
%
|
||||
Kaman Distribution Corp. (c) (i)
|
|
Industrials
|
|
L+5.00% (6.94%), 8/26/2026
|
|
21,498
|
|
|
19,650
|
|
|
20,853
|
|
|
1.4
|
%
|
||||
Kissner Milling Co., Ltd. (a)
|
|
Industrials
|
|
8.38%, 12/1/2022
|
|
11,294
|
|
|
11,514
|
|
|
11,802
|
|
|
0.8
|
%
|
||||
Lakeland Tours, LLC (i) (j)
|
|
Education
|
|
L+4.25% (6.15%), 12/16/2024
|
|
10,210
|
|
|
10,148
|
|
|
10,171
|
|
|
0.7
|
%
|
||||
Lakeview Health Holdings, Inc. (c) (l) (t)
|
|
Healthcare
|
|
9.75%, 12/15/2021
|
|
129
|
|
|
124
|
|
|
54
|
|
|
0.0
|
%
|
||||
Lakeview Health Holdings, Inc. (c) (l) (t)
|
|
Healthcare
|
|
9.75%, 12/15/2021
|
|
3,756
|
|
|
2,671
|
|
|
1,582
|
|
|
0.1
|
%
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
||||||||
LightSquared, LP (l)
|
|
Telecom
|
|
L+8.75% (10.85%), 12/7/2020
|
|
$
|
12,376
|
|
|
$
|
11,812
|
|
|
$
|
7,921
|
|
|
0.5
|
%
|
|
Lionbridge Technologies, Inc. (c) (i)
|
|
Business Services
|
|
L+6.25% (8.04%), 12/20/2025
|
|
10,344
|
|
|
10,241
|
|
|
10,241
|
|
|
0.7
|
%
|
||||
MCS Acquisition Corp. (c)
|
|
Business Services
|
|
L+4.75% (6.64%), 5/20/2024
|
|
14,009
|
|
|
13,971
|
|
|
6,024
|
|
|
0.4
|
%
|
||||
MED Parentco, LP (j)
|
|
Healthcare
|
|
L+4.25% (6.05%), 8/31/2026
|
|
306
|
|
|
306
|
|
|
305
|
|
|
0.0
|
%
|
||||
MED Parentco, LP (j)
|
|
Healthcare
|
|
L+4.25% (6.05%), 8/31/2026
|
|
5,745
|
|
|
5,690
|
|
|
5,736
|
|
|
0.4
|
%
|
||||
Medallion Midland Acquisition, LP (j)
|
|
Energy
|
|
L+3.25% (5.05%), 10/30/2024
|
|
4,361
|
|
|
4,353
|
|
|
4,306
|
|
|
0.3
|
%
|
||||
Medical Depot Holdings, Inc. (c) (i) (l)
|
|
Healthcare
|
|
L+7.50% (9.44%), 1/3/2023
|
|
18,850
|
|
|
17,981
|
|
|
14,175
|
|
|
1.0
|
%
|
||||
MGTF Radio Company, LLC (c) (o)
|
|
Media/Entertainment
|
|
L+6.00% (7.80%), 4/1/2024
|
|
57,974
|
|
|
57,831
|
|
|
54,171
|
|
|
3.7
|
%
|
||||
Micross Solutions, LLC (c)
|
|
Software/Services
|
|
L+5.00% (6.72%), 8/7/2023
|
|
3,065
|
|
|
2,955
|
|
|
3,065
|
|
|
0.2
|
%
|
||||
Midwest Can Company, LLC (c) (i)
|
|
Paper & Packaging
|
|
L+5.00% (6.81%), 4/11/2024
|
|
4,622
|
|
|
4,589
|
|
|
4,622
|
|
|
0.3
|
%
|
||||
Miller Environmental Group, Inc. (c) (i)
|
|
Business Services
|
|
P+5.50% (10.25%), 3/15/2024
|
|
10,589
|
|
|
10,378
|
|
|
10,377
|
|
|
0.7
|
%
|
||||
Miller Environmental Group, Inc. (c) (i)
|
|
Business Services
|
|
L+6.50% (8.63%), 3/15/2024
|
|
11,579
|
|
|
11,385
|
|
|
11,371
|
|
|
0.8
|
%
|
||||
MLN US Holdco, LLC (a) (j)
|
|
Technology
|
|
L+4.50% (6.19%), 11/28/2025
|
|
10,675
|
|
|
10,645
|
|
|
10,061
|
|
|
0.7
|
%
|
||||
Monitronics International, Inc. (c)
|
|
Business Services
|
|
L+6.50% (8.30%), 3/29/2024
|
|
7,575
|
|
|
7,589
|
|
|
6,541
|
|
|
0.5
|
%
|
||||
Montreign Operating Company, LLC (c)
|
|
Gaming/Lodging
|
|
L+8.25% (10.16%), 1/24/2023
|
|
26,681
|
|
|
26,425
|
|
|
23,559
|
|
|
1.6
|
%
|
||||
Mood Media Corp. (c)
|
|
Media/Entertainment
|
|
L+7.25% (9.19%), 6/28/2022
|
|
704
|
|
|
691
|
|
|
662
|
|
|
0.0
|
%
|
||||
Mood Media Corp. (c) (i)
|
|
Media/Entertainment
|
|
L+7.25% (9.19%), 6/28/2022
|
|
13,168
|
|
|
13,025
|
|
|
12,378
|
|
|
0.9
|
%
|
||||
Murray Energy Holdings, Co. (c)
|
|
Industrials
|
|
L+11.00% (13.00%), 7/31/2020
|
|
1,671
|
|
|
1,631
|
|
|
1,667
|
|
|
0.1
|
%
|
||||
Murray Energy Holdings, Co. (j) (t)
|
|
Industrials
|
|
L+7.25% (9.19%), 10/17/2022
|
|
9,184
|
|
|
9,071
|
|
|
1,870
|
|
|
0.1
|
%
|
||||
Muth Mirror Systems, LLC (c) (i)
|
|
Technology
|
|
L+5.25% (7.39%), 4/23/2025
|
|
15,778
|
|
|
15,498
|
|
|
15,509
|
|
|
1.1
|
%
|
||||
National Technical Systems, Inc. (c) (i)
|
|
Business Services
|
|
L+6.25% (7.94%), 6/14/2021
|
|
17,469
|
|
|
17,422
|
|
|
16,770
|
|
|
1.1
|
%
|
||||
Navitas Midstream Midland Basin, LLC (c) (j)
|
|
Energy
|
|
L+4.50% (6.30%), 12/13/2024
|
|
13,326
|
|
|
13,305
|
|
|
12,977
|
|
|
0.9
|
%
|
||||
New Amsterdam Software Bidco, LLC (c) (i)
|
|
Technology
|
|
L+5.00% (6.80%), 5/1/2026
|
|
6,134
|
|
|
6,023
|
|
|
6,023
|
|
|
0.4
|
%
|
||||
New Star Metals, Inc. (c) (i)
|
|
Industrials
|
|
L+6.00% (7.95%), 6/29/2023
|
|
22,692
|
|
|
22,284
|
|
|
22,692
|
|
|
1.6
|
%
|
||||
NexSteppe, Inc. (c) (l) (o) (t)
|
|
Chemicals
|
|
12.00%, 3/31/2020
|
|
15,285
|
|
|
10,453
|
|
|
—
|
|
|
—
|
%
|
||||
NexSteppe, Inc. (c) (l) (o) (t)
|
|
Chemicals
|
|
12.00%, 3/31/2020
|
|
2,269
|
|
|
1,750
|
|
|
—
|
|
|
—
|
%
|
||||
NN, Inc. (a) (j)
|
|
Industrials
|
|
L+5.25% (7.05%), 10/19/2022
|
|
9,889
|
|
|
9,394
|
|
|
9,691
|
|
|
0.7
|
%
|
||||
Norvax, LLC (c)
|
|
Business Services
|
|
L+6.50% (8.41%), 9/12/2025
|
|
11,489
|
|
|
11,212
|
|
|
11,214
|
|
|
0.8
|
%
|
||||
NTM Acquisition Corp. (c) (i)
|
|
Media/Entertainment
|
|
L+6.25% (8.05%), 6/7/2022
|
|
22,999
|
|
|
22,861
|
|
|
22,999
|
|
|
1.6
|
%
|
||||
Office Depot, Inc. (a) (j)
|
|
Retail
|
|
L+5.25% (7.04%), 11/8/2022
|
|
4,947
|
|
|
4,889
|
|
|
4,984
|
|
|
0.3
|
%
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
||||||||
ORG Chemical Holdings, LLC (c) (g) (l)
|
|
Chemicals
|
|
L+7.75% (9.70%), 6/30/2022
|
|
$
|
3,420
|
|
|
$
|
3,420
|
|
|
$
|
3,420
|
|
|
0.2
|
%
|
|
ORG Chemical Holdings, LLC (c) (i) (l)
|
|
Chemicals
|
|
L+7.75% (9.70%), 6/30/2022
|
|
3,730
|
|
|
3,695
|
|
|
3,730
|
|
|
0.3
|
%
|
||||
ORG GC Holdings, LLC (c) (i)
|
|
Business Services
|
|
L+6.75% (8.70%), 7/31/2022
|
|
21,624
|
|
|
21,457
|
|
|
20,932
|
|
|
1.4
|
%
|
||||
PeopLease Holdings, LLC (c) (i)
|
|
Business Services
|
|
L+9.62% (11.57%), 2/26/2021
|
|
20,000
|
|
|
19,953
|
|
|
19,800
|
|
|
1.4
|
%
|
||||
PGX Holdings, Inc. (c) (j)
|
|
Consumer
|
|
L+5.25% (7.05%), 9/29/2020
|
|
11,820
|
|
|
11,807
|
|
|
8,416
|
|
|
0.6
|
%
|
||||
Planet Equity Group, LLC (c) (i)
|
|
Business Services
|
|
L+5.25% (7.18%), 11/18/2025
|
|
14,941
|
|
|
14,721
|
|
|
14,717
|
|
|
1.0
|
%
|
||||
PlayPower, Inc. (c) (i)
|
|
Industrials
|
|
L+5.50% (7.46%), 5/8/2026
|
|
26,385
|
|
|
26,025
|
|
|
26,385
|
|
|
1.8
|
%
|
||||
Premier Dental Services, Inc. (i) (j)
|
|
Healthcare
|
|
L+5.25% (7.05%), 6/30/2023
|
|
32,354
|
|
|
32,196
|
|
|
32,313
|
|
|
2.2
|
%
|
||||
Premier Global Services, Inc. (c) (j)
|
|
Telecom
|
|
L+6.50% (8.40%), 6/8/2023
|
|
8,578
|
|
|
8,382
|
|
|
5,284
|
|
|
0.4
|
%
|
||||
PSKW, LLC (c)
|
|
Healthcare
|
|
L+7.68% (9.63%), 11/26/2021
|
|
17,750
|
|
|
17,637
|
|
|
17,750
|
|
|
1.2
|
%
|
||||
PSKW, LLC (c)
|
|
Healthcare
|
|
L+7.68% (9.63%), 11/25/2021
|
|
1,972
|
|
|
1,954
|
|
|
1,972
|
|
|
0.1
|
%
|
||||
PSKW, LLC (c)
|
|
Healthcare
|
|
L+7.68% (9.63%), 11/25/2021
|
|
1,930
|
|
|
1,919
|
|
|
1,930
|
|
|
0.1
|
%
|
||||
PSKW, LLC (c) (i)
|
|
Healthcare
|
|
L+4.25% (6.19%), 11/26/2021
|
|
1,162
|
|
|
1,159
|
|
|
1,162
|
|
|
0.1
|
%
|
||||
PT Network, LLC (c) (i) (l)
|
|
Healthcare
|
|
L+7.50% (9.44%), 11/30/2023
|
|
16,780
|
|
|
16,702
|
|
|
15,052
|
|
|
1.0
|
%
|
||||
Questex, Inc. (c)
|
|
Media/Entertainment
|
|
L+5.00% (6.91%), 9/9/2024
|
|
689
|
|
|
689
|
|
|
689
|
|
|
0.0
|
%
|
||||
Questex, Inc. (c) (i)
|
|
Media/Entertainment
|
|
L+5.00% (6.89%), 9/9/2024
|
|
15,989
|
|
|
15,739
|
|
|
15,989
|
|
|
1.1
|
%
|
||||
Red River Technology, LLC (c) (i)
|
|
Business Services
|
|
L+5.00% (6.94%), 8/30/2024
|
|
23,669
|
|
|
23,340
|
|
|
23,337
|
|
|
1.6
|
%
|
||||
Reddy Ice Corp. (c) (i)
|
|
Food & Beverage
|
|
L+5.50% (7.60%), 7/1/2025
|
|
19,540
|
|
|
19,003
|
|
|
19,003
|
|
|
1.3
|
%
|
||||
Regionalcare Hospital Partners Holdings, Inc. (j)
|
|
Healthcare
|
|
L+4.50% (6.30%), 11/14/2025
|
|
19,850
|
|
|
19,521
|
|
|
19,994
|
|
|
1.4
|
%
|
||||
Resco Products, Inc. (c)
|
|
Industrials
|
|
L+6.25% (8.05%), 3/7/2020
|
|
10,000
|
|
|
10,000
|
|
|
9,200
|
|
|
0.6
|
%
|
||||
Safety Products/JHC Acquisition Corp. (c) (j)
|
|
Industrials
|
|
L+4.50% (6.30%), 6/28/2026
|
|
958
|
|
|
958
|
|
|
937
|
|
|
0.1
|
%
|
||||
Safety Products/JHC Acquisition Corp. (c) (j)
|
|
Industrials
|
|
L+4.50% (6.30%), 6/28/2026
|
|
17,717
|
|
|
17,564
|
|
|
17,341
|
|
|
1.2
|
%
|
||||
Schenectady International Group, Inc. (j)
|
|
Chemicals
|
|
L+4.75% (6.79%), 10/15/2025
|
|
19,593
|
|
|
19,164
|
|
|
19,446
|
|
|
1.3
|
%
|
||||
SFR Group, SA (a) (i)
|
|
Telecom
|
|
L+3.69% (5.43%), 2/2/2026
|
|
14,962
|
|
|
14,926
|
|
|
14,962
|
|
|
1.0
|
%
|
||||
SFR Group, SA (a) (i) (j)
|
|
Telecom
|
|
L+4.00% (5.74%), 8/14/2026
|
|
12,967
|
|
|
12,862
|
|
|
12,978
|
|
|
0.9
|
%
|
||||
Shields Health Solutions Holdings, LLC (c) (i)
|
|
Healthcare
|
|
L+5.00% (6.80%), 8/19/2026
|
|
6,963
|
|
|
6,896
|
|
|
6,897
|
|
|
0.5
|
%
|
||||
SitusAMC Holdings Corp. (c) (i)
|
|
Financials
|
|
L+4.75% (6.55%), 6/30/2025
|
|
8,486
|
|
|
8,369
|
|
|
8,371
|
|
|
0.6
|
%
|
||||
Skillsoft Corp. (j)
|
|
Technology
|
|
L+4.75% (6.95%), 4/28/2021
|
|
15,001
|
|
|
14,378
|
|
|
11,469
|
|
|
0.8
|
%
|
||||
Squan Holding Corp. (c) (l)
|
|
Telecom
|
|
L+7.00% (8.95%), 6/30/2020
|
|
16,276
|
|
|
16,123
|
|
|
13,835
|
|
|
1.0
|
%
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
||||||||
SSH Group Holdings, Inc. (j)
|
|
Education
|
|
L+4.25% (6.19%), 7/30/2025
|
|
$
|
10,736
|
|
|
$
|
10,704
|
|
|
$
|
10,776
|
|
|
0.7
|
%
|
|
Subsea Global Solutions, LLC (c)
|
|
Business Services
|
|
L+7.00% (9.06%), 3/29/2023
|
|
388
|
|
|
388
|
|
|
381
|
|
|
0.0
|
%
|
||||
Subsea Global Solutions, LLC (c) (i)
|
|
Business Services
|
|
L+7.00% (9.00%), 3/29/2023
|
|
2,392
|
|
|
2,302
|
|
|
2,344
|
|
|
0.2
|
%
|
||||
Subsea Global Solutions, LLC (c) (i)
|
|
Business Services
|
|
L+7.00% (9.00%), 3/29/2023
|
|
8,327
|
|
|
8,219
|
|
|
8,168
|
|
|
0.6
|
%
|
||||
Tax Defense Network, LLC (c) (l) (p) (t)
|
|
Consumer
|
|
L+6.00% (10.00%), 4/30/2020
|
|
5,257
|
|
|
3,833
|
|
|
1,262
|
|
|
0.1
|
%
|
||||
Tax Defense Network, LLC (c) (l) (p) (t)
|
|
Consumer
|
|
L+6.00% (10.00%), 4/30/2020
|
|
29,616
|
|
|
21,646
|
|
|
7,108
|
|
|
0.5
|
%
|
||||
Tax Defense Network, LLC (c) (l) (p) (t)
|
|
Consumer
|
|
L+10.00% (10.00%), 4/30/2020
|
|
2,357
|
|
|
2,357
|
|
|
2,357
|
|
|
0.2
|
%
|
||||
The Dun & Bradstreet Corp. (j)
|
|
Business Services
|
|
L+5.00% (6.79%), 2/6/2026
|
|
10,000
|
|
|
9,825
|
|
|
10,079
|
|
|
0.7
|
%
|
||||
TIBCO Software, Inc. (j)
|
|
Technology
|
|
L+4.00% (5.71%), 6/30/2026
|
|
4,988
|
|
|
4,988
|
|
|
5,005
|
|
|
0.3
|
%
|
||||
Tillamook Country Smoker, LLC (c)
|
|
Food & Beverage
|
|
L+5.75% (7.85%), 5/19/2022
|
|
1,078
|
|
|
1,078
|
|
|
1,054
|
|
|
0.1
|
%
|
||||
Tillamook Country Smoker, LLC (c) (i)
|
|
Food & Beverage
|
|
L+5.75% (7.65%), 5/19/2022
|
|
10,090
|
|
|
10,018
|
|
|
9,858
|
|
|
0.7
|
%
|
||||
Tivity Health, Inc. (a) (j)
|
|
Healthcare
|
|
L+5.25% (7.05%), 3/6/2026
|
|
4,396
|
|
|
4,299
|
|
|
4,396
|
|
|
0.3
|
%
|
||||
Tivity Health, Inc. (a) (j)
|
|
Healthcare
|
|
L+4.25% (6.05%), 3/8/2024
|
|
1,641
|
|
|
1,627
|
|
|
1,641
|
|
|
0.1
|
%
|
||||
Trademark Global, LLC (c)
|
|
Consumer
|
|
L+6.00% (7.80%), 4/28/2023
|
|
2,067
|
|
|
2,067
|
|
|
2,067
|
|
|
0.1
|
%
|
||||
Traverse Midstream Partners, LLC (j)
|
|
Energy
|
|
L+4.00% (5.80%), 9/27/2024
|
|
16,222
|
|
|
15,847
|
|
|
14,568
|
|
|
1.0
|
%
|
||||
Trilogy International Partners, LLC (a)
|
|
Telecom
|
|
8.88%, 5/1/2022
|
|
14,875
|
|
|
14,837
|
|
|
13,983
|
|
|
1.0
|
%
|
||||
University of St. Augustine Acquisition Corp. (c) (i)
|
|
Education
|
|
L+4.25% (6.05%), 2/2/2026
|
|
24,004
|
|
|
23,482
|
|
|
23,524
|
|
|
1.6
|
%
|
||||
Veritext Corp. (i)
|
|
Business Services
|
|
L+3.75% (5.69%), 8/1/2025
|
|
4,975
|
|
|
4,975
|
|
|
4,955
|
|
|
0.3
|
%
|
||||
Vertex Aerospace Services Corp. (i)
|
|
Industrials
|
|
L+4.50% (6.30%), 6/30/2025
|
|
8,726
|
|
|
8,692
|
|
|
8,753
|
|
|
0.6
|
%
|
||||
Von Drehle Corp. (c) (i) (l)
|
|
Paper & Packaging
|
|
L+11.50% (13.44%), 3/6/2023
|
|
26,856
|
|
|
26,595
|
|
|
25,164
|
|
|
1.7
|
%
|
||||
Vyaire Medical, Inc. (c) (j)
|
|
Healthcare
|
|
L+4.75% (6.84%), 4/16/2025
|
|
8,850
|
|
|
8,580
|
|
|
7,611
|
|
|
0.5
|
%
|
||||
WaterBridge Midstream Operating, LLC (j)
|
|
Energy
|
|
L+5.75% (7.83%), 6/22/2026
|
|
11,834
|
|
|
11,572
|
|
|
11,613
|
|
|
0.8
|
%
|
||||
WMK, LLC (c)
|
|
Business Services
|
|
L+5.75% (7.49%), 9/5/2025
|
|
1,910
|
|
|
1,903
|
|
|
1,910
|
|
|
0.1
|
%
|
||||
WMK, LLC (c)
|
|
Business Services
|
|
L+5.75% (7.44%), 9/5/2024
|
|
1,134
|
|
|
1,134
|
|
|
1,134
|
|
|
0.1
|
%
|
||||
WMK, LLC (c) (i)
|
|
Business Services
|
|
L+5.75% (7.49%), 9/5/2025
|
|
20,180
|
|
|
19,853
|
|
|
20,180
|
|
|
1.4
|
%
|
||||
Xplornet Communications, Inc. (a) (i) (j)
|
|
Telecom
|
|
L+4.00% (5.94%), 9/9/2021
|
|
15,679
|
|
|
15,645
|
|
|
15,699
|
|
|
1.1
|
%
|
||||
YummyEarth, Inc. (c)
|
|
Food & Beverage
|
|
L+7.00% (8.91%), 8/1/2025
|
|
2,626
|
|
|
2,625
|
|
|
2,626
|
|
|
0.2
|
%
|
||||
Sub Total Senior Secured First Lien Debt
|
|
|
|
|
|
$
|
1,862,228
|
|
|
$
|
1,764,292
|
|
|
120.6
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
||||||||
Senior Secured Second Lien Debt - 21.0% (b)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accentcare, Inc. (c) (i)
|
|
Healthcare
|
|
L+8.75% (10.70%), 6/21/2027
|
|
$
|
17,795
|
|
|
$
|
17,380
|
|
|
$
|
17,366
|
|
|
1.2
|
%
|
|
Anchor Glass Container Corp. (c)
|
|
Paper & Packaging
|
|
L+7.75% (9.46%), 12/6/2024
|
|
20,000
|
|
|
19,845
|
|
|
10,400
|
|
|
0.7
|
%
|
||||
Astro AB Merger Sub, Inc. (a) (i)
|
|
Financials
|
|
L+7.50% (9.43%), 4/28/2023
|
|
7,758
|
|
|
7,758
|
|
|
7,719
|
|
|
0.5
|
%
|
||||
Asurion Corp. (i) (j)
|
|
Business Services
|
|
L+6.50% (8.30%), 8/4/2025
|
|
18,734
|
|
|
18,866
|
|
|
18,949
|
|
|
1.3
|
%
|
||||
Avatar Purchaser, Inc. (c) (j)
|
|
Software/Services
|
|
L+7.50% (9.49%), 11/17/2025
|
|
11,716
|
|
|
11,458
|
|
|
11,716
|
|
|
0.8
|
%
|
||||
Aveanna Healthcare, LLC (c)
|
|
Healthcare
|
|
L+8.00% (9.80%), 3/17/2025
|
|
15,000
|
|
|
14,852
|
|
|
13,650
|
|
|
0.9
|
%
|
||||
Baker Hill Acquisition, LLC (c)
|
|
Financials
|
|
L+11.00% (13.09%), 3/22/2021
|
|
3,017
|
|
|
1,508
|
|
|
1,584
|
|
|
0.1
|
%
|
||||
Baker Hill Acquisition, LLC (c)
|
|
Financials
|
|
L+11.00% (13.09%), 3/22/2021
|
|
447
|
|
|
416
|
|
|
447
|
|
|
0.0
|
%
|
||||
Boston Market Corp. (c)
|
|
Food & Beverage
|
|
L+4.50% (6.51%), 1/9/2021
|
|
3,691
|
|
|
3,691
|
|
|
3,691
|
|
|
0.3
|
%
|
||||
Boston Market Corp. (c)
|
|
Food & Beverage
|
|
L+8.25% (10.19%), 1/18/2021
|
|
26,259
|
|
|
24,260
|
|
|
8,534
|
|
|
0.6
|
%
|
||||
Boston Market Corp. (c)
|
|
Food & Beverage
|
|
L+4.50% (6.59%), 1/9/2021
|
|
923
|
|
|
923
|
|
|
923
|
|
|
0.1
|
%
|
||||
BrandMuscle Holdings, Inc. (c)
|
|
Business Services
|
|
L+8.50% (10.60%), 6/1/2022
|
|
24,500
|
|
|
24,317
|
|
|
24,500
|
|
|
1.7
|
%
|
||||
Carlisle FoodService Products, Inc. (c) (i)
|
|
Consumer
|
|
L+7.75% (9.55%), 3/20/2026
|
|
10,719
|
|
|
10,552
|
|
|
10,719
|
|
|
0.7
|
%
|
||||
CDS U.S. Intermediate Holdings, Inc. (a) (c)
|
|
Media/Entertainment
|
|
L+8.25% (10.19%), 7/10/2023
|
|
9,177
|
|
|
8,946
|
|
|
7,846
|
|
|
0.5
|
%
|
||||
Constellis Holdings, LLC (c) (t)
|
|
Business Services
|
|
L+9.00% (10.93%), 4/21/2025
|
|
1,117
|
|
|
1,117
|
|
|
56
|
|
|
0.0
|
%
|
||||
Dentalcorp Perfect Smile, ULC (a) (c)
|
|
Healthcare
|
|
L+7.50% (9.30%), 6/8/2026
|
|
10,139
|
|
|
10,056
|
|
|
10,139
|
|
|
0.7
|
%
|
||||
Dimora Brands, Inc. (c)
|
|
Consumer
|
|
L+8.50% (10.30%), 8/25/2025
|
|
4,464
|
|
|
4,463
|
|
|
4,464
|
|
|
0.3
|
%
|
||||
Edelman Financial Services, LLC (a) (j)
|
|
Financials
|
|
L+6.75% (8.54%), 7/20/2026
|
|
6,764
|
|
|
6,736
|
|
|
6,730
|
|
|
0.5
|
%
|
||||
Hyland Software, Inc. (c) (i)
|
|
Technology
|
|
L+7.00% (8.80%), 7/7/2025
|
|
6,904
|
|
|
6,930
|
|
|
6,904
|
|
|
0.5
|
%
|
||||
ICP Industrial, Inc. (c)
|
|
Chemicals
|
|
L+8.25% (10.04%), 5/3/2024
|
|
5,588
|
|
|
5,587
|
|
|
5,588
|
|
|
0.4
|
%
|
||||
KidKraft, Inc. (c) (l)
|
|
Consumer
|
|
12.00%, 3/31/2022
|
|
6,373
|
|
|
6,316
|
|
|
5,149
|
|
|
0.4
|
%
|
||||
MLN US Holdco, LLC (a) (c) (i)
|
|
Technology
|
|
L+8.75% (10.44%), 11/30/2026
|
|
3,000
|
|
|
2,948
|
|
|
2,452
|
|
|
0.2
|
%
|
||||
Northstar Financial Services Group, LLC (c)
|
|
Financials
|
|
L+7.50% (9.30%), 5/25/2026
|
|
2,666
|
|
|
2,656
|
|
|
2,666
|
|
|
0.2
|
%
|
||||
PetVet Care Centers, LLC (c)
|
|
Healthcare
|
|
L+6.25% (8.05%), 2/13/2026
|
|
3,539
|
|
|
3,525
|
|
|
3,539
|
|
|
0.2
|
%
|
||||
PI US Holdco III, Ltd. (a) (c)
|
|
Financials
|
|
L+7.25% (9.05%), 12/22/2025
|
|
6,696
|
|
|
6,645
|
|
|
6,562
|
|
|
0.5
|
%
|
||||
ProAmpac, LLC (c)
|
|
Paper & Packaging
|
|
L+8.50% (10.40%), 11/18/2024
|
|
3,352
|
|
|
3,351
|
|
|
3,352
|
|
|
0.2
|
%
|
||||
Project Boost Purchaser, LLC
|
|
Business Services
|
|
L+8.00% (9.80%), 5/31/2027
|
|
1,848
|
|
|
1,848
|
|
|
1,848
|
|
|
0.1
|
%
|
||||
QuickBase, Inc. (c)
|
|
Technology
|
|
L+8.00% (9.71%), 4/2/2027
|
|
7,484
|
|
|
7,348
|
|
|
7,349
|
|
|
0.5
|
%
|
||||
Recess Holdings, Inc. (c) (i)
|
|
Industrials
|
|
L+7.75% (9.55%), 9/29/2025
|
|
15,008
|
|
|
14,841
|
|
|
15,008
|
|
|
1.0
|
%
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
||||||||
Dryden Senior Loan Fund 2014-36A ER2 (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+6.88% (8.87%), 4/15/2029
|
|
$
|
2,000
|
|
|
$
|
1,947
|
|
|
$
|
1,975
|
|
|
0.1
|
%
|
|
KKR Financial CLO, Ltd. 27A E (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+6.90% (8.82%), 10/15/2032
|
|
1,250
|
|
|
1,189
|
|
|
1,211
|
|
|
0.1
|
%
|
||||
LCM, Ltd. Partnership 16A ER2 (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+6.38% (8.38%), 10/15/2031
|
|
2,500
|
|
|
2,307
|
|
|
2,307
|
|
|
0.2
|
%
|
||||
Madison Park Funding, Ltd. 16-21A DR (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+7.56% (9.39%), 10/15/2032
|
|
2,000
|
|
|
1,881
|
|
|
1,881
|
|
|
0.1
|
%
|
||||
Madison Park Funding, Ltd. 19-35A E (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+6.75% (8.72%), 4/20/2031
|
|
2,000
|
|
|
1,945
|
|
|
1,945
|
|
|
0.1
|
%
|
||||
NewStar Arlington Senior Loan Program, LLC 14-1A FR (a) (c) (p)
|
|
Diversified Investment Vehicles
|
|
L+11.00% (12.94%), 4/25/2031
|
|
4,750
|
|
|
4,550
|
|
|
4,612
|
|
|
0.3
|
%
|
||||
Newstar Fairfield Fund CLO, Ltd. 2015-1RA F (a) (c) (p)
|
|
Diversified Investment Vehicles
|
|
L+7.50% (9.47%), 1/20/2027
|
|
10,728
|
|
|
9,586
|
|
|
9,209
|
|
|
0.6
|
%
|
||||
OCP CLO, Ltd. 14-5A DR (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+5.70% (7.64%), 4/26/2031
|
|
2,200
|
|
|
2,060
|
|
|
2,060
|
|
|
0.1
|
%
|
||||
OCP CLO, Ltd. 2019-17A E (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+6.66% (8.79%), 7/20/2032
|
|
3,000
|
|
|
2,913
|
|
|
2,946
|
|
|
0.2
|
%
|
||||
Pikes Peak CLO 19-3A E (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+6.86% (8.80%), 4/25/2030
|
|
3,000
|
|
|
2,849
|
|
|
2,849
|
|
|
0.2
|
%
|
||||
Sound Point CLO, Ltd. 19-3A E (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+7.31% (9.41%), 10/25/2032
|
|
3,000
|
|
|
2,912
|
|
|
2,972
|
|
|
0.2
|
%
|
||||
Sound Point CLO, Ltd. 2015-3A ER (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+5.25% (7.22%), 1/20/2028
|
|
2,000
|
|
|
1,881
|
|
|
1,915
|
|
|
0.1
|
%
|
||||
Symphony CLO, Ltd. 2012-9A ER2 (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+6.95% (8.95%), 7/16/2032
|
|
3,000
|
|
|
2,942
|
|
|
2,972
|
|
|
0.2
|
%
|
||||
TCW CLO 2019-1 AMR, Ltd. 19-1A F (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+8.67% (10.58%), 2/15/2029
|
|
2,500
|
|
|
2,396
|
|
|
2,396
|
|
|
0.2
|
%
|
||||
Vibrant CLO, Ltd. 2016-4A DR (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+4.33% (6.30%), 7/20/2032
|
|
3,000
|
|
|
2,913
|
|
|
2,947
|
|
|
0.2
|
%
|
||||
Whitehorse, Ltd. 2014-1A E (a) (c) (p)
|
|
Diversified Investment Vehicles
|
|
L+4.55% (6.46%), 5/1/2026
|
|
8,000
|
|
|
7,717
|
|
|
7,054
|
|
|
0.5
|
%
|
||||
Zais CLO 13, Ltd. 19-13A D1 (a) (c)
|
|
Diversified Investment Vehicles
|
|
L+4.52% (6.60%), 7/15/2032
|
|
3,000
|
|
|
2,854
|
|
|
2,908
|
|
|
0.2
|
%
|
||||
Collateralized Securities - Equity Investment (n)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CVP Cascade CLO, Ltd. 2013-CLO1 Side Letter (a) (c)
|
|
Diversified Investment Vehicles
|
|
0.00%, 1/16/2026
|
|
$
|
3,243
|
|
|
$
|
106
|
|
|
$
|
24
|
|
|
0.0
|
%
|
|
CVP Cascade CLO, Ltd. 2014-2A Side Letter (a) (c)
|
|
Diversified Investment Vehicles
|
|
0.00%, 7/18/2026
|
|
3,755
|
|
|
463
|
|
|
38
|
|
|
0.0
|
%
|
||||
Figueroa CLO, Ltd. 2014-1A Side Letter (a) (c)
|
|
Diversified Investment Vehicles
|
|
0.00%, 1/15/2027
|
|
2,986
|
|
|
597
|
|
|
67
|
|
|
0.0
|
%
|
||||
MidOcean Credit CLO 2013-2A INC (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.76%, 1/29/2025
|
|
37,600
|
|
|
16,815
|
|
|
11,835
|
|
|
0.8
|
%
|
||||
NewStar Arlington Senior Loan Program, LLC 14-1A SUB (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
16.56%, 7/25/2025
|
|
31,603
|
|
|
19,353
|
|
|
19,697
|
|
|
1.4
|
%
|
||||
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
21.81%, 1/20/2027
|
|
31,575
|
|
|
7,298
|
|
|
6,607
|
|
|
0.5
|
%
|
||||
OFSI Fund, Ltd. 2014-6A Side Letter (a) (c)
|
|
Diversified Investment Vehicles
|
|
0.00%, 3/20/2025
|
|
1,970
|
|
|
263
|
|
|
—
|
|
|
—
|
%
|
||||
Whitehorse, Ltd. 2014-1A Side Letter (a) (c) (p)
|
|
Diversified Investment Vehicles
|
|
10.44%, 5/1/2026
|
|
1,886
|
|
|
134
|
|
|
35
|
|
|
0.0
|
%
|
||||
Whitehorse, Ltd. 2014-1A SUB (a) (c) (p) (v)
|
|
Diversified Investment Vehicles
|
|
0.00%, 5/1/2026
|
|
36,000
|
|
|
6,965
|
|
|
286
|
|
|
0.0
|
%
|
||||
Sub Total Collateralized Securities
|
|
|
|
|
|
$
|
122,870
|
|
|
$
|
108,927
|
|
|
7.4
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity/Other - 17.7% (b) (d)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Aden & Anais Holdings, Inc. (c) (e) (x)
|
|
Retail
|
|
|
|
4,470
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
||||||||
Answers Corp. (c) (p)
|
|
Media/Entertainment
|
|
|
|
908,911
|
|
|
$
|
11,361
|
|
|
$
|
727
|
|
|
0.0
|
%
|
||
Avaya Holdings Corp. (a) (e) (s)
|
|
Technology
|
|
|
|
187,660
|
|
|
2,979
|
|
|
2,533
|
|
|
0.2
|
%
|
||||
Baker Hill Acquisition, LLC (c) (e)
|
|
Financials
|
|
|
|
22,653
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Boston Market Corp. (c) (e) (u)
|
|
Food & Beverage
|
|
|
|
160,327
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Capstone Nutrition Development, LLC (c) (e) (p) (u)
|
|
Consumer
|
|
|
|
47,883
|
|
|
4,788
|
|
|
4,788
|
|
|
0.3
|
%
|
||||
Captek Softgel International, Inc. (c) (e) (x)
|
|
Health/Fitness
|
|
|
|
8,498
|
|
|
942
|
|
|
—
|
|
|
—
|
%
|
||||
CRD Holdings, LLC (a) (c) (o) (u)
|
|
Energy
|
|
9.00
|
%
|
|
52,285,603
|
|
|
28,066
|
|
|
28,943
|
|
|
2.0
|
%
|
|||
CRS-SPV, Inc. (c) (e) (o)
|
|
Industrials
|
|
|
|
246
|
|
|
2,219
|
|
|
2,221
|
|
|
0.2
|
%
|
||||
Danish CRJ, Ltd. (a) (c) (e) (p) (r)
|
|
Transportation
|
|
|
|
5,002
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Data Source Holdings, LLC (c) (e)
|
|
Business Services
|
|
|
|
10,617
|
|
|
140
|
|
|
93
|
|
|
0.0
|
%
|
||||
Del Real, LLC (c) (e) (u)
|
|
Food & Beverage
|
|
|
|
670,510
|
|
|
382
|
|
|
—
|
|
|
—
|
%
|
||||
Dyno Acquiror, Inc. (c) (e)
|
|
Consumer
|
|
|
|
134,102
|
|
|
58
|
|
|
80
|
|
|
0.0
|
%
|
||||
HemaSource, Inc. (c) (e) (x)
|
|
Healthcare
|
|
|
|
223,503
|
|
|
168
|
|
|
101
|
|
|
0.0
|
%
|
||||
ICP Industrial, Inc. (c) (e)
|
|
Chemicals
|
|
|
|
288
|
|
|
279
|
|
|
380
|
|
|
0.0
|
%
|
||||
Integrated Efficiency Solutions, Inc. (c) (e)
|
|
Industrials
|
|
|
|
53,215
|
|
|
56
|
|
|
—
|
|
|
—
|
%
|
||||
Integrated Efficiency Solutions, Inc. (c) (e)
|
|
Industrials
|
|
|
|
2,975
|
|
|
3
|
|
|
—
|
|
|
—
|
%
|
||||
Kahala Ireland OpCo Designated Activity Company (a) (c) (e) (h) (o)
|
|
Transportation
|
|
|
|
1
|
|
|
—
|
|
|
57,226
|
|
|
3.9
|
%
|
||||
Kahala Ireland OpCo Designated Activity Company (a) (c) (e) (h) (o)
|
|
Transportation
|
|
|
|
3,250,000
|
|
|
2,795
|
|
|
3,250
|
|
|
0.2
|
%
|
||||
Kahala US OpCo, LLC (a) (c) (e) (k) (o)
|
|
Transportation
|
|
13.00
|
%
|
|
4,413,472
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
K-Square Restaurant Partners, LP (c) (e) (x)
|
|
Food & Beverage
|
|
|
|
447
|
|
|
175
|
|
|
—
|
|
|
—
|
%
|
||||
Lakeview Health Holdings, Inc. (c) (e)
|
|
Healthcare
|
|
|
|
447
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
MGTF Holdco, LLC (c) (e) (o) (u)
|
|
Media/Entertainment
|
|
|
|
330,000
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
MIC Holding, LLC (c) (e)
|
|
Consumer
|
|
|
|
30,000
|
|
|
3,750
|
|
|
3,822
|
|
|
0.3
|
%
|
||||
MIC Holding, LLC (c) (e)
|
|
Consumer
|
|
|
|
1,470
|
|
|
3,687
|
|
|
4,520
|
|
|
0.3
|
%
|
||||
Micross Solutions, LLC (c) (e)
|
|
Software/Services
|
|
|
|
442,430
|
|
|
223
|
|
|
1,040
|
|
|
0.1
|
%
|
||||
Mood Media Corp. (c) (e)
|
|
Media/Entertainment
|
|
|
|
121,021
|
|
|
27
|
|
|
—
|
|
|
—
|
%
|
||||
Motor Vehicle Software Corp. (c) (e) (x)
|
|
Business Services
|
|
|
|
223,503
|
|
|
318
|
|
|
268
|
|
|
0.0
|
%
|
||||
NexSteppe, Inc. (c) (e) (o)
|
|
Chemicals
|
|
|
|
237,239,694
|
|
|
737
|
|
|
—
|
|
|
—
|
%
|
||||
NMFC Senior Loan Program I, LLC (a) (o)
|
|
Diversified Investment Vehicles
|
|
|
|
50,000
|
|
|
50,000
|
|
|
47,310
|
|
|
3.2
|
%
|
||||
Nomacorc, LLC (c) (e) (u)
|
|
Industrials
|
|
|
|
356,816
|
|
|
56
|
|
|
143
|
|
|
0.0
|
%
|
||||
Park Ave RE Holdings, LLC (c) (e) (o) (w)
|
|
Financials
|
|
|
|
719
|
|
|
2,842
|
|
|
11,133
|
|
|
0.8
|
%
|
||||
PCX Aerostructures, LLC (c) (e) (p)
|
|
Industrials
|
|
|
|
27,250
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
PCX Aerostructures, LLC (c) (e) (p)
|
|
Industrials
|
|
|
|
315
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
PCX Aerostructures, LLC (c) (e) (p)
|
|
Industrials
|
|
|
|
1,356
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
PennantPark Credit Opportunities Fund II, LP (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
8,739
|
|
|
8,739
|
|
|
8,707
|
|
|
0.6
|
%
|
||||
PT Network, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
RMP Group, Inc. (c) (e) (u)
|
|
Financials
|
|
|
|
223
|
|
|
164
|
|
|
274
|
|
|
0.0
|
%
|
||||
RockYou, Inc. (c) (e)
|
|
Media/Entertainment
|
|
|
|
15,105
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
December 31, 2019
|
||||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
||||||||
Schweiger Dermatology Group, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
265,024
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
||
Siena Capital Finance, LLC (c) (o)
|
|
Financials
|
|
|
|
35,839,400
|
|
|
36,537
|
|
|
36,915
|
|
|
2.5
|
%
|
||||
Smile Brands, Inc. (c) (e)
|
|
Healthcare
|
|
|
|
712
|
|
|
815
|
|
|
1,101
|
|
|
0.1
|
%
|
||||
Squan Holding Corp. (c) (e)
|
|
Telecom
|
|
|
|
180,835
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Squan Holding Corp. (c) (e)
|
|
Telecom
|
|
|
|
8,962
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
St. Croix Hospice Acquisition Corp. (c) (e)
|
|
Healthcare
|
|
|
|
112
|
|
|
—
|
|
|
31
|
|
|
0.0
|
%
|
||||
St. Croix Hospice Acquisition Corp. (c) (e)
|
|
Healthcare
|
|
|
|
112
|
|
|
64
|
|
|
134
|
|
|
0.0
|
%
|
||||
SYNACOR, Inc. (e) (s)
|
|
Technology
|
|
|
|
59,785
|
|
|
—
|
|
|
91
|
|
|
0.0
|
%
|
||||
Tap Rock Resources, LLC (c) (e) (g) (p) (u)
|
|
Energy
|
|
|
|
20,672,210
|
|
|
20,672
|
|
|
20,879
|
|
|
1.4
|
%
|
||||
Tax Advisors Group, LLC (c) (e) (u)
|
|
Financials
|
|
|
|
86
|
|
|
609
|
|
|
755
|
|
|
0.1
|
%
|
||||
Tax Defense Network, LLC (c) (e) (p)
|
|
Consumer
|
|
|
|
633,382
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Tax Defense Network, LLC (c) (e) (p)
|
|
Consumer
|
|
|
|
147,099
|
|
|
425
|
|
|
—
|
|
|
—
|
%
|
||||
Team Waste, LLC (c) (e) (p) (u)
|
|
Industrials
|
|
|
|
111,752
|
|
|
2,235
|
|
|
2,235
|
|
|
0.2
|
%
|
||||
Tennenbaum Waterman Fund, LP (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
10,000
|
|
|
10,000
|
|
|
9,841
|
|
|
0.7
|
%
|
||||
THL Credit Greenway Fund II, LLC (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
5,048
|
|
|
5,048
|
|
|
2,554
|
|
|
0.2
|
%
|
||||
Travelpro Products, Inc. (a) (c) (e)
|
|
Consumer
|
|
|
|
447,007
|
|
|
506
|
|
|
581
|
|
|
0.0
|
%
|
||||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
39,769
|
|
|
132
|
|
|
21
|
|
|
0.0
|
%
|
||||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
99,236
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
3,155
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
223
|
|
|
35
|
|
|
9
|
|
|
0.0
|
%
|
||||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
4,206
|
|
|
31
|
|
|
15
|
|
|
0.0
|
%
|
||||
USASF Holdco, LLC (c) (e) (u)
|
|
Financials
|
|
|
|
10,000
|
|
|
10
|
|
|
—
|
|
|
—
|
%
|
||||
USASF Holdco, LLC (c) (e) (u)
|
|
Financials
|
|
|
|
490
|
|
|
490
|
|
|
640
|
|
|
0.0
|
%
|
||||
USASF Holdco, LLC (c) (e) (u)
|
|
Financials
|
|
|
|
139
|
|
|
139
|
|
|
278
|
|
|
0.0
|
%
|
||||
Vantage Mobility International, LLC (c) (e) (p)
|
|
Transportation
|
|
|
|
1,468,221
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Vantage Mobility International, LLC (c) (e) (p)
|
|
Transportation
|
|
|
|
391,131
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Vantage Mobility International, LLC (c) (e) (p)
|
|
Transportation
|
|
|
|
3,139,625
|
|
|
3,140
|
|
|
942
|
|
|
0.1
|
%
|
||||
Women's Marketing, Inc. (c) (e)
|
|
Media/Entertainment
|
|
|
|
3,643
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
World Business Lenders, LLC (c) (e)
|
|
Financials
|
|
|
|
922,669
|
|
|
3,750
|
|
|
3,755
|
|
|
0.3
|
%
|
||||
WPNT, LLC (c) (e) (o) (u)
|
|
Media/Entertainment
|
|
|
|
330,000
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
WSO Holdings, LP (c) (e)
|
|
Food & Beverage
|
|
|
|
698
|
|
|
279
|
|
|
—
|
|
|
—
|
%
|
||||
Wythe Will Tzetzo, LLC (c) (e) (u)
|
|
Food & Beverage
|
|
|
|
22,312
|
|
|
301
|
|
|
—
|
|
|
—
|
%
|
||||
YummyEarth, Inc. (c) (e)
|
|
Food & Beverage
|
|
|
|
223
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Sub Total Equity/Other
|
|
|
|
|
|
$
|
210,172
|
|
|
$
|
258,336
|
|
|
17.7
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
TOTAL INVESTMENTS - 174.1% (b)
|
|
|
|
|
|
$
|
2,639,642
|
|
|
$
|
2,546,184
|
|
|
174.1
|
%
|
Counterparty
|
|
Contract to Deliver
|
|
In Exchange For
|
|
Maturity Date
|
|
Unrealized Depreciation
|
||||
Goldman Sachs International
|
|
CAD 21,807
|
|
$
|
16,359
|
|
|
1/10/2020
|
|
$
|
(388
|
)
|
(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, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. Qualifying assets represent 75.9% of the Company's total assets. The significant majority of all investments held are deemed to be illiquid.
|
(b)
|
Percentages are based on net assets as of December 31, 2019.
|
(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)
|
All amounts are in thousands except share amounts.
|
(e)
|
Non-income producing at December 31, 2019.
|
(f)
|
The Company has various unfunded commitments to portfolio companies. Please refer to Note 7 - Commitments and Contingencies for details of these unfunded commitments.
|
(g)
|
The commitment related to this investment is discretionary.
|
(h)
|
The Company's investment is held through the consolidated subsidiaries, Kahala Aviation Holdings, LLC and Kahala LuxCo S.A.R.L, 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.
|
(l)
|
For the year ended December 31, 2019, the following investments paid or have the option to pay all or a portion of interest and dividends via payment-in-kind (“PIK”):
|
December 31, 2019
|
|||||||||||||||
Portfolio Company
|
|
Investment Type
|
|
Cash
|
|
PIK
|
|
All-in Rate
|
|
PIK earned for the year ended December 31, 2019
|
|||||
Gold Standard Baking, Inc.
|
|
Senior Secured First Lien Debt
|
|
6.50
|
%
|
|
2.00
|
%
|
|
8.50
|
%
|
|
$
|
81
|
|
Integral Ad Science, Inc.
|
|
Senior Secured First Lien Debt
|
|
7.80
|
%
|
|
1.25
|
%
|
|
9.05
|
%
|
|
182
|
|
|
Internap Corp.
|
|
Senior Secured First Lien Debt
|
|
8.04
|
%
|
|
0.75
|
%
|
|
8.79
|
%
|
|
56
|
|
|
Kahala Ireland OpCo Designated Activity Company
|
|
Senior Secured First Lien Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
—
|
|
|
Lakeview Health Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
9.75
|
%
|
|
9.75
|
%
|
|
—
|
|
|
Lakeview Health Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
9.75
|
%
|
|
9.75
|
%
|
|
—
|
|
|
LightSquared, LP
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
10.85
|
%
|
|
10.85
|
%
|
|
1,478
|
|
|
Medical Depot Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
7.44
|
%
|
|
2.00
|
%
|
|
9.44
|
%
|
|
93
|
|
|
NexSteppe, Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
12.00
|
%
|
|
12.00
|
%
|
|
—
|
|
|
NexSteppe, Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
12.00
|
%
|
|
12.00
|
%
|
|
—
|
|
|
ORG Chemical Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
9.70
|
%
|
|
—
|
%
|
|
9.70
|
%
|
|
14
|
|
|
ORG Chemical Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
9.70
|
%
|
|
—
|
%
|
|
9.70
|
%
|
|
269
|
|
|
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
7.44
|
%
|
|
2.00
|
%
|
|
9.44
|
%
|
|
101
|
|
|
Squan Holding Corp.
|
|
Senior Secured First Lien Debt
|
|
7.95
|
%
|
|
1.00
|
%
|
|
8.95
|
%
|
|
169
|
|
|
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
10.00
|
%
|
|
10.00
|
%
|
|
—
|
|
|
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
4.47
|
%
|
|
5.53
|
%
|
|
10.00
|
%
|
|
—
|
|
|
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
4.47
|
%
|
|
5.53
|
%
|
|
10.00
|
%
|
|
—
|
|
|
TwentyEighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
4.00
|
%
|
|
4.00
|
%
|
|
8.00
|
%
|
|
201
|
|
|
TwentyEighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
0.25
|
%
|
|
8.75
|
%
|
|
9.00
|
%
|
|
426
|
|
|
Von Drehle Corp.
|
|
Senior Secured First Lien Debt
|
|
9.44
|
%
|
|
4.00
|
%
|
|
13.44
|
%
|
|
1,068
|
|
|
KidKraft, Inc.
|
|
Senior Secured Second Lien Debt
|
|
11.00
|
%
|
|
1.00
|
%
|
|
12.00
|
%
|
|
63
|
|
|
Travelpro Products, Inc.
|
|
Senior Secured Second Lien Debt
|
|
11.00
|
%
|
|
2.00
|
%
|
|
13.00
|
%
|
|
48
|
|
|
Travelpro Products, Inc.
|
|
Senior Secured Second Lien Debt
|
|
11.00
|
%
|
|
2.00
|
%
|
|
13.00
|
%
|
|
42
|
|
|
Vantage Mobility International, LLC
|
|
Senior Secured Second Lien Debt
|
|
—
|
%
|
|
7.80
|
%
|
|
7.80
|
%
|
|
—
|
|
|
Vital Proteins, LLC
|
|
Senior Secured Second Lien Debt
|
|
7.50
|
%
|
|
4.50
|
%
|
|
12.00
|
%
|
|
168
|
|
|
Captek Softgel International, Inc.
|
|
Subordinated Debt
|
|
10.00
|
%
|
|
1.50
|
%
|
|
11.50
|
%
|
|
80
|
|
|
Community Intervention Services, Inc.
|
|
Subordinated Debt
|
|
—
|
%
|
|
13.00
|
%
|
|
13.00
|
%
|
|
—
|
|
|
Dyno Acquiror, Inc.
|
|
Subordinated Debt
|
|
10.50
|
%
|
|
1.50
|
%
|
|
12.00
|
%
|
|
16
|
|
|
HTC Borrower, LLC
|
|
Subordinated Debt
|
|
10.00
|
%
|
|
3.00
|
%
|
|
13.00
|
%
|
|
169
|
|
|
Park Ave RE Holdings, LLC
|
|
Subordinated Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
—
|
|
|
PCX Aerostructures, LLC
|
|
Subordinated Debt
|
|
—
|
%
|
|
6.00
|
%
|
|
6.00
|
%
|
|
462
|
|
|
RMP Group, Inc.
|
|
Subordinated Debt
|
|
10.50
|
%
|
|
1.00
|
%
|
|
11.50
|
%
|
|
23
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
$
|
5,209
|
|
(m)
|
The principal amount (par amount) is denominated in Canadian Dollars or CAD.
|
(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 the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be "non-controlled" when the Company owns 25% or less of the portfolio company's voting securities and "controlled" when the Company owns 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 the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as "non-affiliated" when the Company owns less than 5% of a portfolio company's voting securities and "affiliated" when the Company owns 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 consolidated 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)
|
The investment is not a restricted security. All other securities are restricted securities.
|
(t)
|
The investment is on non-accrual status as of December 31, 2019.
|
(u)
|
Investments are held in the taxable wholly-owned, consolidated subsidiary, 54th 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 investment is held through BSP TCAP Acquisition Holdings LP which, as further outlined in Note 1, is an affiliated acquisition entity utilized for the Triangle Transaction. Due to certain restrictions, such as limits on the number of partners allowable within the equity structures of the newly acquired investments, these investments are still held within the acquisition entity as of December 31, 2019.
|
(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, 2019. 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, 2019
|
|||||
|
Investments at
Fair Value
|
|
Percentage of
Total Portfolio
|
|||
Healthcare
|
$
|
364,143
|
|
|
14.3
|
%
|
Business Services
|
354,813
|
|
|
13.9
|
%
|
|
Industrials
|
308,246
|
|
|
12.1
|
%
|
|
Transportation
|
180,676
|
|
|
7.1
|
%
|
|
Diversified Investment Vehicles
|
177,339
|
|
|
7.0
|
%
|
|
Financials
|
170,154
|
|
|
6.7
|
%
|
|
Telecom
|
152,334
|
|
|
6.0
|
%
|
|
Energy
|
152,159
|
|
|
6.0
|
%
|
|
Media/Entertainment
|
141,505
|
|
|
5.5
|
%
|
|
Technology
|
128,117
|
|
|
5.0
|
%
|
|
Food & Beverage
|
109,211
|
|
|
4.3
|
%
|
|
Consumer
|
76,535
|
|
|
3.0
|
%
|
|
Education
|
54,593
|
|
|
2.1
|
%
|
|
Gaming/Lodging
|
47,577
|
|
|
1.9
|
%
|
|
Paper & Packaging
|
43,538
|
|
|
1.7
|
%
|
|
Software/Services
|
42,372
|
|
|
1.7
|
%
|
|
Chemicals
|
32,564
|
|
|
1.3
|
%
|
|
Health/Fitness
|
5,324
|
|
|
0.2
|
%
|
|
Retail
|
4,984
|
|
|
0.2
|
%
|
|
Total
|
$
|
2,546,184
|
|
|
100.0
|
%
|
December 31, 2018
|
|||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured First Lien Debt - 106.8% (b)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Abaco Systems Holding Corp. (c) (i)
|
|
Industrials
|
|
L+6.00% (8.41%), 12/7/2021
|
|
$
|
23,456
|
|
|
$
|
23,177
|
|
|
$
|
22,980
|
|
|
1.5
|
%
|
ABC Financial Intermediate, LLC (c) (j)
|
|
Technology
|
|
L+4.25% (6.64%), 1/2/2025
|
|
7,681
|
|
|
7,648
|
|
|
7,681
|
|
|
0.5
|
%
|
|||
AccentCare, Inc. (c)
|
|
Healthcare
|
|
L+4.50% (7.04%), 4/2/2019
|
|
3,353
|
|
|
3,349
|
|
|
3,323
|
|
|
0.2
|
%
|
|||
AccentCare, Inc. (c) (i)
|
|
Healthcare
|
|
L+4.50% (7.30%), 4/3/2024
|
|
28,646
|
|
|
28,390
|
|
|
28,388
|
|
|
1.9
|
%
|
|||
AHP Health Partners, Inc. (i)
|
|
Healthcare
|
|
L+4.50% (7.02%), 6/30/2025
|
|
18,888
|
|
|
18,711
|
|
|
18,558
|
|
|
1.2
|
%
|
|||
Aleris International, Inc. (j)
|
|
Industrials
|
|
L+4.75% (7.25%), 2/27/2023
|
|
18,294
|
|
|
18,151
|
|
|
18,100
|
|
|
1.2
|
%
|
|||
Altice France SA (a)
|
|
Telecom
|
|
8.13%, 2/1/2027
|
|
15,000
|
|
|
14,816
|
|
|
14,172
|
|
|
0.9
|
%
|
|||
Alvogen Pharma US, Inc. (j)
|
|
Healthcare
|
|
L+4.75% (7.27%), 4/1/2022
|
|
13,511
|
|
|
13,433
|
|
|
13,207
|
|
|
0.9
|
%
|
|||
AM General, LLC (c) (i)
|
|
Industrials
|
|
L+7.25% (9.77%), 12/28/2021
|
|
1,781
|
|
|
1,780
|
|
|
1,781
|
|
|
0.1
|
%
|
|||
American Greetings Corp. (j)
|
|
Consumer
|
|
L+4.50% (7.00%), 4/6/2024
|
|
1,755
|
|
|
1,724
|
|
|
1,722
|
|
|
0.1
|
%
|
|||
AMI Entertainment Network, LLC (c) (i)
|
|
Media/Entertainment
|
|
L+6.00% (8.80%), 7/21/2022
|
|
13,397
|
|
|
13,207
|
|
|
13,157
|
|
|
0.9
|
%
|
|||
AP Gaming I, LLC (a) (j)
|
|
Gaming/Lodging
|
|
L+3.50% (6.02%), 2/15/2024
|
|
18,726
|
|
|
18,698
|
|
|
18,305
|
|
|
1.2
|
%
|
|||
AP NMT Acquisition B.V. (a) (j)
|
|
Media/Entertainment
|
|
L+5.75% (8.15%), 8/13/2021
|
|
6,568
|
|
|
6,583
|
|
|
6,283
|
|
|
0.4
|
%
|
|||
AqGen Ascensus, Inc. (j)
|
|
Business Services
|
|
L+3.50% (6.12%), 12/3/2022
|
|
8,472
|
|
|
8,465
|
|
|
8,239
|
|
|
0.6
|
%
|
|||
Avantor Performance Materials, Inc.
|
|
Healthcare
|
|
9.00%, 10/1/2025
|
|
13,000
|
|
|
13,326
|
|
|
13,000
|
|
|
0.9
|
%
|
|||
Avaya Holdings Corp. (a) (j)
|
|
Technology
|
|
L+4.25% (6.69%), 12/15/2024
|
|
26,382
|
|
|
26,164
|
|
|
25,425
|
|
|
1.7
|
%
|
|||
Aveanna Healthcare, LLC (c)
|
|
Healthcare
|
|
L+5.50% (8.02%), 3/18/2024
|
|
4,694
|
|
|
4,428
|
|
|
4,569
|
|
|
0.3
|
%
|
|||
Aveanna Healthcare, LLC (c) (j)
|
|
Healthcare
|
|
L+4.25% (6.77%), 3/18/2024
|
|
792
|
|
|
742
|
|
|
743
|
|
|
0.0
|
%
|
|||
BCP Raptor, LLC (j)
|
|
Energy
|
|
L+4.25% (6.87%), 6/24/2024
|
|
19,229
|
|
|
19,068
|
|
|
17,907
|
|
|
1.2
|
%
|
|||
BCP Renaissance, LLC (j)
|
|
Energy
|
|
L+3.50% (6.03%), 10/31/2024
|
|
3,455
|
|
|
3,440
|
|
|
3,355
|
|
|
0.2
|
%
|
|||
BDS Solutions Group, LLC (c)
|
|
Business Services
|
|
L+8.75% (11.56%), 6/1/2021
|
|
7,033
|
|
|
6,953
|
|
|
6,646
|
|
|
0.4
|
%
|
|||
BDS Solutions Group, LLC (c) (i)
|
|
Business Services
|
|
L+8.75% (11.56%), 6/1/2021
|
|
26,098
|
|
|
25,813
|
|
|
24,662
|
|
|
1.7
|
%
|
|||
Beaver-Visitec International Holdings, Inc. (j)
|
|
Healthcare
|
|
L+4.00% (6.62%), 8/21/2023
|
|
6,514
|
|
|
6,514
|
|
|
6,449
|
|
|
0.4
|
%
|
|||
Black Mountain Sand, LLC (c)
|
|
Energy
|
|
L+9.00% (11.40%), 11/30/2021
|
|
13,050
|
|
|
12,907
|
|
|
12,742
|
|
|
0.9
|
%
|
|||
Black Mountain Sand, LLC (c)
|
|
Energy
|
|
L+9.00% (11.40%), 11/30/2021
|
|
13,050
|
|
|
12,892
|
|
|
12,742
|
|
|
0.9
|
%
|
|||
BMC Software Finance, Inc. (j)
|
|
Technology
|
|
L+4.25% (7.05%), 10/2/2025
|
|
23,309
|
|
|
23,083
|
|
|
22,428
|
|
|
1.5
|
%
|
|||
Bomgar Corp. (j)
|
|
Technology
|
|
L+4.00% (6.55%), 4/18/2025
|
|
1,982
|
|
|
1,974
|
|
|
1,907
|
|
|
0.1
|
%
|
|||
California Resources Corp. (a) (j)
|
|
Energy
|
|
L+4.75% (7.26%), 12/31/2022
|
|
12,259
|
|
|
12,060
|
|
|
11,850
|
|
|
0.8
|
%
|
December 31, 2018
|
|||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
Capstone Nutrition (fka Integrity Nutraceuticals) (c) (l) (o) (t)
|
|
Consumer
|
|
L+12.50% (15.03%), 9/25/2020
|
|
$
|
24,706
|
|
|
$
|
16,406
|
|
|
$
|
3,459
|
|
|
0.2
|
%
|
Capstone Nutrition (fka Integrity Nutraceuticals) (c) (l) (o) (t)
|
|
Consumer
|
|
L+12.50% (15.03%), 9/25/2020
|
|
54,940
|
|
|
33,647
|
|
|
7,692
|
|
|
0.5
|
%
|
|||
Capstone Nutrition (fka Integrity Nutraceuticals) (c) (l) (o) (t)
|
|
Consumer
|
|
L+12.50% (15.03%), 9/25/2020
|
|
3,285
|
|
|
2,829
|
|
|
3,219
|
|
|
0.2
|
%
|
|||
CareCentrix, Inc. (j)
|
|
Healthcare
|
|
L+4.50% (7.30%), 4/3/2025
|
|
9,604
|
|
|
9,561
|
|
|
9,412
|
|
|
0.6
|
%
|
|||
CCW, LLC (c)
|
|
Food & Beverage
|
|
L+7.00% (9.56%), 3/21/2021
|
|
1,300
|
|
|
1,300
|
|
|
1,235
|
|
|
0.1
|
%
|
|||
CCW, LLC (c) (i)
|
|
Food & Beverage
|
|
L+7.00% (9.56%), 3/21/2021
|
|
27,300
|
|
|
27,088
|
|
|
25,935
|
|
|
1.7
|
%
|
|||
CDHA Holdings, LLC (c)
|
|
Healthcare
|
|
L+6.00% (8.80%), 8/24/2023
|
|
430
|
|
|
430
|
|
|
424
|
|
|
0.0
|
%
|
|||
CDHA Holdings, LLC (c) (i)
|
|
Healthcare
|
|
L+6.00% (8.80%), 8/24/2023
|
|
15,759
|
|
|
15,539
|
|
|
15,546
|
|
|
1.0
|
%
|
|||
Chloe Ox Parent, LLC (c) (i)
|
|
Healthcare
|
|
L+4.50% (7.30%), 12/23/2024
|
|
10,687
|
|
|
10,595
|
|
|
10,701
|
|
|
0.7
|
%
|
|||
Clarion Events, Ltd. (a) (c) (j)
|
|
Business Services
|
|
L+5.00% (7.71%), 9/29/2024
|
|
10,497
|
|
|
10,301
|
|
|
10,268
|
|
|
0.7
|
%
|
|||
Clover Technologies Group, LLC (j)
|
|
Industrials
|
|
L+4.50% (7.02%), 5/8/2020
|
|
13,178
|
|
|
13,149
|
|
|
12,437
|
|
|
0.8
|
%
|
|||
Cold Spring Brewing, Co. (c) (i)
|
|
Food & Beverage
|
|
L+5.25% (7.71%), 5/15/2024
|
|
3,352
|
|
|
3,292
|
|
|
3,286
|
|
|
0.2
|
%
|
|||
Community Care Health Network, LLC (j)
|
|
Healthcare
|
|
L+4.75% (7.27%), 2/16/2025
|
|
2,672
|
|
|
2,666
|
|
|
2,592
|
|
|
0.2
|
%
|
|||
CONSOL Energy Inc. (c) (j)
|
|
Industrials
|
|
L+6.00% (8.53%), 11/28/2022
|
|
3,208
|
|
|
3,157
|
|
|
3,220
|
|
|
0.2
|
%
|
|||
Contura Energy Inc. (a) (c) (j)
|
|
Industrials
|
|
L+5.00% (7.52%), 3/18/2024
|
|
6,448
|
|
|
6,195
|
|
|
6,432
|
|
|
0.4
|
%
|
|||
Corfin Industries, LLC (c)
|
|
Industrials
|
|
L+6.50% (8.95%), 2/15/2024
|
|
574
|
|
|
574
|
|
|
563
|
|
|
0.0
|
%
|
|||
Corfin Industries, LLC (c) (i)
|
|
Industrials
|
|
L+6.50% (9.00%), 2/15/2024
|
|
8,572
|
|
|
8,426
|
|
|
8,420
|
|
|
0.6
|
%
|
|||
Crown Subsea Communications Holding, Inc. (j)
|
|
Industrials
|
|
L+6.00% (8.35%), 11/2/2025
|
|
10,020
|
|
|
9,922
|
|
|
9,607
|
|
|
0.7
|
%
|
|||
Deva Holdings, Inc. (c) (i)
|
|
Consumer
|
|
L+6.25% (8.77%), 10/31/2023
|
|
7,191
|
|
|
7,256
|
|
|
7,263
|
|
|
0.5
|
%
|
|||
DLC Acquisition, LLC (c)
|
|
Business Services
|
|
L+8.00% (10.80%), 12/30/2020
|
|
4,340
|
|
|
4,340
|
|
|
4,340
|
|
|
0.3
|
%
|
|||
DLC Acquisition, LLC (c) (l)
|
|
Business Services
|
|
12.00%, 12/1/2020
|
|
3,325
|
|
|
3,325
|
|
|
3,325
|
|
|
0.2
|
%
|
|||
Eagle Rx, LLC (c) (i)
|
|
Healthcare
|
|
L+4.25% (6.60%), 8/15/2019
|
|
26,790
|
|
|
26,752
|
|
|
26,589
|
|
|
1.8
|
%
|
|||
Florida Food Products, LLC (c)
|
|
Food & Beverage
|
|
L+6.75% (9.27%), 9/6/2023
|
|
1,021
|
|
|
1,021
|
|
|
997
|
|
|
0.1
|
%
|
|||
Florida Food Products, LLC (c) (i)
|
|
Food & Beverage
|
|
L+6.75% (9.27%), 9/6/2025
|
|
22,338
|
|
|
21,805
|
|
|
21,780
|
|
|
1.5
|
%
|
|||
Frank Entertainment Group, LLC (c) (p) (t)
|
|
Media/Entertainment
|
|
6.00%, 6/30/2019
|
|
3,014
|
|
|
1,836
|
|
|
1,441
|
|
|
0.1
|
%
|
|||
Frontier Communications Corp. (a) (j)
|
|
Telecom
|
|
L+3.75% (6.28%), 6/17/2024
|
|
9,919
|
|
|
9,702
|
|
|
9,182
|
|
|
0.6
|
%
|
|||
Gold Standard Baking, Inc.
|
|
Food & Beverage
|
|
L+4.50% (7.31%), 4/23/2021
|
|
2,977
|
|
|
1,812
|
|
|
1,786
|
|
|
0.1
|
%
|
|||
Green Energy Partners/Stonewall, LLC (j)
|
|
Energy
|
|
L+5.50% (8.30%), 11/13/2021
|
|
1,010
|
|
|
1,008
|
|
|
999
|
|
|
0.1
|
%
|
|||
Green Energy Partners/Stonewall, LLC (j)
|
|
Energy
|
|
L+5.50% (8.30%), 11/13/2021
|
|
1,337
|
|
|
1,335
|
|
|
1,323
|
|
|
0.1
|
%
|
December 31, 2018
|
|||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
HC Group Holdings III, Inc. (c) (j)
|
|
Healthcare
|
|
L+3.75% (6.27%), 4/7/2022
|
|
$
|
14,630
|
|
|
$
|
14,467
|
|
|
$
|
14,630
|
|
|
1.0
|
%
|
Hexion Inc.
|
|
Chemicals
|
|
10.38%, 2/1/2022
|
|
5,000
|
|
|
4,944
|
|
|
4,013
|
|
|
0.3
|
%
|
|||
Hexion Inc.
|
|
Chemicals
|
|
6.63%, 4/15/2020
|
|
5,000
|
|
|
4,675
|
|
|
3,988
|
|
|
0.3
|
%
|
|||
Hexion Inc.
|
|
Chemicals
|
|
10.00%, 4/15/2020
|
|
10,000
|
|
|
9,363
|
|
|
8,270
|
|
|
0.6
|
%
|
|||
ICR Operations, LLC (c)
|
|
Business Services
|
|
L+5.50% (8.31%), 3/26/2024
|
|
111
|
|
|
109
|
|
|
109
|
|
|
0.0
|
%
|
|||
ICR Operations, LLC (c) (i)
|
|
Business Services
|
|
L+5.50% (8.31%), 3/26/2025
|
|
13,567
|
|
|
13,326
|
|
|
13,337
|
|
|
0.9
|
%
|
|||
Ideal Tridon Holdings, Inc. (c)
|
|
Industrials
|
|
L+6.50% (9.02%), 7/31/2022
|
|
2,021
|
|
|
1,996
|
|
|
1,993
|
|
|
0.1
|
%
|
|||
Ideal Tridon Holdings, Inc. (c) (i)
|
|
Industrials
|
|
L+6.50% (9.02%), 7/31/2023
|
|
5,185
|
|
|
5,116
|
|
|
5,111
|
|
|
0.3
|
%
|
|||
Ideal Tridon Holdings, Inc. (c) (i)
|
|
Industrials
|
|
L+6.50% (9.02%), 7/31/2023
|
|
23,663
|
|
|
23,302
|
|
|
23,324
|
|
|
1.6
|
%
|
|||
Integral Ad Science, Inc. (c) (l)
|
|
Software/Services
|
|
L+6.00% (8.53%), 7/19/2024
|
|
14,198
|
|
|
13,937
|
|
|
13,914
|
|
|
0.9
|
%
|
|||
Integrated Efficiency Solutions, Inc. (c) (l)
|
|
Industrials
|
|
L+9.25% (12.05%), 6/1/2022
|
|
3,876
|
|
|
3,875
|
|
|
3,760
|
|
|
0.3
|
%
|
|||
Intelsat Jackson Holdings, SA (a) (j)
|
|
Telecom
|
|
L+4.50% (7.01%), 1/2/2024
|
|
10,000
|
|
|
10,222
|
|
|
9,910
|
|
|
0.7
|
%
|
|||
Internap Corp. (a) (c) (i)
|
|
Business Services
|
|
L+5.75% (8.19%), 4/6/2022
|
|
11,880
|
|
|
11,865
|
|
|
11,648
|
|
|
0.8
|
%
|
|||
IPC Corp. (j)
|
|
Software/Services
|
|
L+4.50% (7.03%), 8/6/2021
|
|
3,784
|
|
|
3,742
|
|
|
3,235
|
|
|
0.2
|
%
|
|||
Iri Holdings, Inc. (j)
|
|
Business Services
|
|
L+4.50% (7.02%), 11/30/2025
|
|
5,000
|
|
|
4,950
|
|
|
4,863
|
|
|
0.3
|
%
|
|||
Kahala Ireland OpCo Designated Activity Company (a) (c) (l) (o)
|
|
Transportation
|
|
L+8.00% (13.00%), 12/23/2028
|
|
111,549
|
|
|
111,549
|
|
|
111,549
|
|
|
7.5
|
%
|
|||
Kissner Milling Co. Ltd. (a)
|
|
Industrials
|
|
8.38%, 12/1/2022
|
|
21,199
|
|
|
21,472
|
|
|
21,345
|
|
|
1.4
|
%
|
|||
Lakeland Tours, LLC (i)
|
|
Education
|
|
L+4.00% (6.79%), 12/15/2024
|
|
6,052
|
|
|
6,040
|
|
|
5,881
|
|
|
0.4
|
%
|
|||
Lakeview Health Holdings, Inc. (c)
|
|
Healthcare
|
|
L+8.75% (11.55%), 12/15/2021
|
|
4,077
|
|
|
3,057
|
|
|
3,262
|
|
|
0.2
|
%
|
|||
LightSquared, LP (l)
|
|
Telecom
|
|
L+8.75% (11.52%), 12/7/2020
|
|
12,606
|
|
|
12,017
|
|
|
8,667
|
|
|
0.6
|
%
|
|||
Lionbridge Technologies, Inc. (i) (j)
|
|
Business Services
|
|
L+5.50% (8.02%), 2/28/2024
|
|
16,166
|
|
|
16,090
|
|
|
16,024
|
|
|
1.1
|
%
|
|||
Loparex International Holding B.V. (j)
|
|
Paper & Packaging
|
|
L+4.25% (7.05%), 4/11/2025
|
|
1,993
|
|
|
1,984
|
|
|
1,953
|
|
|
0.1
|
%
|
|||
McDermott Technology, B.V. (a) (j)
|
|
Industrials
|
|
L+5.00% (7.52%), 5/10/2025
|
|
9,975
|
|
|
9,877
|
|
|
9,285
|
|
|
0.6
|
%
|
|||
MCS Acquisition Corp. (c) (j)
|
|
Business Services
|
|
L+4.75% (7.27%), 5/18/2024
|
|
14,153
|
|
|
14,105
|
|
|
11,464
|
|
|
0.8
|
%
|
|||
Medallion Midland Acquisition, LP (j)
|
|
Energy
|
|
L+3.25% (5.77%), 10/30/2024
|
|
4,406
|
|
|
4,396
|
|
|
4,147
|
|
|
0.3
|
%
|
|||
Medical Depot Holdings, Inc. (c) (i)
|
|
Healthcare
|
|
L+5.50% (8.30%), 1/3/2023
|
|
19,264
|
|
|
18,084
|
|
|
17,492
|
|
|
1.2
|
%
|
|||
MGTF Radio Company, LLC (c)
|
|
Media/Entertainment
|
|
P+3.50% (9.00%), 3/29/2020
|
|
37,956
|
|
|
37,956
|
|
|
37,576
|
|
|
2.5
|
%
|
|||
Micross Solutions, LLC (c)
|
|
Software/Services
|
|
L+5.50% (8.27%), 8/7/2023
|
|
3,163
|
|
|
3,017
|
|
|
3,084
|
|
|
0.2
|
%
|
|||
Midwest Can Company, LLC (c) (i)
|
|
Paper & Packaging
|
|
L+5.00% (7.56%), 4/11/2024
|
|
4,669
|
|
|
4,627
|
|
|
4,604
|
|
|
0.3
|
%
|
|||
MLN US Holdco, LLC (a) (j)
|
|
Technology
|
|
L+4.50% (7.02%), 11/30/2025
|
|
13,455
|
|
|
13,414
|
|
|
13,009
|
|
|
0.9
|
%
|
|||
MMM Holdings, LLC (c)
|
|
Healthcare
|
|
L+6.25% (8.68%), 3/15/2023
|
|
3,500
|
|
|
3,432
|
|
|
3,472
|
|
|
0.2
|
%
|
December 31, 2018
|
|||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
MMM Holdings, LLC (c) (i)
|
|
Healthcare
|
|
L+6.25% (8.71%), 3/15/2023
|
|
$
|
20,449
|
|
|
$
|
20,106
|
|
|
$
|
20,288
|
|
|
1.4
|
%
|
Monitronics International, Inc. (j)
|
|
Business Services
|
|
L+5.50% (8.30%), 9/30/2022
|
|
10,072
|
|
|
10,095
|
|
|
8,901
|
|
|
0.6
|
%
|
|||
Montreign Operating Company, LLC (j)
|
|
Gaming/Lodging
|
|
L+8.25% (10.96%), 1/24/2023
|
|
26,957
|
|
|
26,615
|
|
|
24,900
|
|
|
1.7
|
%
|
|||
Mood Media Corp. (c) (i) (l)
|
|
Media/Entertainment
|
|
L+7.25% (10.05%), 6/28/2022
|
|
14,318
|
|
|
14,092
|
|
|
13,817
|
|
|
0.9
|
%
|
|||
Murray Energy Holdings Co. (j)
|
|
Industrials
|
|
L+7.25% (9.78%), 10/17/2022
|
|
9,231
|
|
|
9,089
|
|
|
7,777
|
|
|
0.5
|
%
|
|||
National Technical Systems, Inc. (c) (i)
|
|
Business Services
|
|
L+6.25% (8.60%), 6/12/2021
|
|
17,648
|
|
|
17,569
|
|
|
16,589
|
|
|
1.1
|
%
|
|||
Navitas Midstream Midland Basin, LLC (c) (j)
|
|
Energy
|
|
L+4.50% (7.00%), 12/13/2024
|
|
13,462
|
|
|
13,436
|
|
|
13,387
|
|
|
0.9
|
%
|
|||
New Star Metals, Inc. (c) (i)
|
|
Industrials
|
|
L+6.00% (8.80%), 7/9/2023
|
|
22,934
|
|
|
22,615
|
|
|
22,714
|
|
|
1.5
|
%
|
|||
NexSteppe, Inc. (c) (l) (o) (t)
|
|
Chemicals
|
|
12.00%, 3/31/2019
|
|
2,010
|
|
|
1,750
|
|
|
—
|
|
|
—
|
%
|
|||
NexSteppe, Inc. (c) (l) (o) (t)
|
|
Chemicals
|
|
12.00%, 3/31/2019
|
|
13,542
|
|
|
10,453
|
|
|
—
|
|
|
—
|
%
|
|||
NTM Acquisition Corp. (c) (i)
|
|
Media/Entertainment
|
|
L+6.25% (8.96%), 6/7/2022
|
|
17,692
|
|
|
17,552
|
|
|
17,427
|
|
|
1.2
|
%
|
|||
Office Depot, Inc. (a) (j)
|
|
Retail
|
|
L+5.25% (7.71%), 11/8/2022
|
|
5,860
|
|
|
5,768
|
|
|
5,894
|
|
|
0.4
|
%
|
|||
ORG Chemical Holdings, LLC (c) (i)
|
|
Chemicals
|
|
L+5.75% (8.55%), 6/30/2022
|
|
27,543
|
|
|
27,158
|
|
|
26,741
|
|
|
1.8
|
%
|
|||
ORG GC Holdings, LLC (c) (i)
|
|
Business Services
|
|
L+6.00% (8.80%), 7/31/2022
|
|
25,291
|
|
|
25,019
|
|
|
24,942
|
|
|
1.7
|
%
|
|||
Passport Food Group, LLC (c)
|
|
Food & Beverage
|
|
L+9.00% (11.40%), 3/1/2022
|
|
4,470
|
|
|
2,905
|
|
|
2,682
|
|
|
0.2
|
%
|
|||
Peabody Energy Corp
|
|
Industrials
|
|
6.38%, 3/31/2025
|
|
5,000
|
|
|
4,821
|
|
|
4,692
|
|
|
0.3
|
%
|
|||
PeopLease Holdings, LLC (c) (i)
|
|
Business Services
|
|
L+9.00% (11.81%), 2/26/2021
|
|
20,000
|
|
|
19,913
|
|
|
17,500
|
|
|
1.2
|
%
|
|||
PGX Holdings, Inc. (c) (j)
|
|
Consumer
|
|
L+5.25% (7.78%), 9/29/2020
|
|
12,183
|
|
|
12,154
|
|
|
11,940
|
|
|
0.8
|
%
|
|||
Premier Dental Services, Inc. (i) (j)
|
|
Healthcare
|
|
L+5.25% (7.75%), 6/30/2023
|
|
32,686
|
|
|
32,480
|
|
|
30,725
|
|
|
2.1
|
%
|
|||
Premier Global Services, Inc. (c) (j)
|
|
Telecom
|
|
L+6.25% (8.84%), 12/8/2021
|
|
8,843
|
|
|
8,640
|
|
|
7,511
|
|
|
0.5
|
%
|
|||
Pride Plating, Inc. (c) (i)
|
|
Industrials
|
|
L+5.50% (8.02%), 6/13/2019
|
|
12,222
|
|
|
12,215
|
|
|
12,222
|
|
|
0.8
|
%
|
|||
PSKW, LLC (c) (i)
|
|
Healthcare
|
|
L+4.25% (7.05%), 11/25/2021
|
|
1,392
|
|
|
1,385
|
|
|
1,392
|
|
|
0.1
|
%
|
|||
PSKW, LLC (c)
|
|
Healthcare
|
|
L+8.25% (11.05%), 11/25/2021
|
|
17,750
|
|
|
17,578
|
|
|
17,750
|
|
|
1.2
|
%
|
|||
PSKW, LLC (c)
|
|
Healthcare
|
|
L+8.25% (11.05%), 11/25/2021
|
|
1,972
|
|
|
1,944
|
|
|
1,972
|
|
|
0.1
|
%
|
|||
PSKW, LLC (c)
|
|
Healthcare
|
|
L+8.25% (11.05%), 11/25/2021
|
|
1,930
|
|
|
1,914
|
|
|
1,930
|
|
|
0.1
|
%
|
|||
PT Network, LLC (c)
|
|
Healthcare
|
|
P+4.50% (10.00%), 11/30/2021
|
|
658
|
|
|
658
|
|
|
609
|
|
|
0.0
|
%
|
|||
PT Network, LLC (c) (i)
|
|
Healthcare
|
|
L+5.50% (7.93%), 11/30/2021
|
|
16,679
|
|
|
16,582
|
|
|
15,448
|
|
|
1.0
|
%
|
|||
Questex, Inc. (c)
|
|
Media/Entertainment
|
|
L+6.25% (9.02%), 9/7/2024
|
|
431
|
|
|
431
|
|
|
423
|
|
|
0.0
|
%
|
|||
Questex, Inc. (c) (i)
|
|
Media/Entertainment
|
|
L+6.25% (9.02%), 9/7/2024
|
|
16,151
|
|
|
15,845
|
|
|
15,858
|
|
|
1.1
|
%
|
|||
Quorum Health Corporation (j)
|
|
Healthcare
|
|
L+6.75% (9.27%), 4/29/2022
|
|
5,212
|
|
|
5,282
|
|
|
5,149
|
|
|
0.4
|
%
|
December 31, 2018
|
|||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
Regionalcare Hospital Partners Holdings, Inc. (a) (j)
|
|
Healthcare
|
|
L+4.50% (7.13%), 11/16/2025
|
|
$
|
20,000
|
|
|
$
|
19,618
|
|
|
$
|
18,925
|
|
|
1.3
|
%
|
Resco Products, Inc. (c)
|
|
Industrials
|
|
L+4.50% (7.02%), 3/7/2020
|
|
10,000
|
|
|
10,000
|
|
|
9,850
|
|
|
0.7
|
%
|
|||
RR Donnelley & Sons Co (a) (j)
|
|
Publishing
|
|
L+5.00% (7.51%), 1/15/2024
|
|
10,000
|
|
|
9,925
|
|
|
9,775
|
|
|
0.7
|
%
|
|||
Schenectady International Group, Inc. (j)
|
|
Chemicals
|
|
L+4.75% (7.19%), 10/15/2025
|
|
19,791
|
|
|
19,283
|
|
|
18,999
|
|
|
1.3
|
%
|
|||
SCUF Gaming, Inc. (c)
|
|
Consumer
|
|
L+9.50% (12.01%), 12/1/2021
|
|
5,434
|
|
|
4,483
|
|
|
4,619
|
|
|
0.3
|
%
|
|||
SCUF Gaming, Inc. (c)
|
|
Consumer
|
|
L+9.50% (12.01%), 3/1/2019
|
|
335
|
|
|
335
|
|
|
285
|
|
|
0.0
|
%
|
|||
Skillsoft Corp. (j)
|
|
Technology
|
|
L+4.75% (7.27%), 4/28/2021
|
|
24,779
|
|
|
23,349
|
|
|
19,968
|
|
|
1.3
|
%
|
|||
Squan Holding Corp. (c) (l)
|
|
Telecom
|
|
L+7.00% (9.40%), 10/10/2019
|
|
16,804
|
|
|
15,718
|
|
|
12,099
|
|
|
0.8
|
%
|
|||
SSH Group Holdings, Inc. (j)
|
|
Education
|
|
L+4.25% (6.77%), 7/30/2025
|
|
6,043
|
|
|
6,029
|
|
|
5,786
|
|
|
0.4
|
%
|
|||
Subsea Global Solutions, LLC (c)
|
|
Business Services
|
|
L+7.00% (9.78%), 3/28/2023
|
|
215
|
|
|
215
|
|
|
208
|
|
|
0.0
|
%
|
|||
Subsea Global Solutions, LLC (c) (i)
|
|
Business Services
|
|
L+7.00% (9.80%), 3/28/2023
|
|
8,411
|
|
|
8,269
|
|
|
8,137
|
|
|
0.6
|
%
|
|||
Sutherland Global
|
|
Business Services
|
|
L+5.38% (8.18%), 4/23/2021
|
|
488
|
|
|
460
|
|
|
458
|
|
|
0.0
|
%
|
|||
Sutherland Global
|
|
Business Services
|
|
L+5.38% (8.18%), 4/23/2021
|
|
2,097
|
|
|
1,976
|
|
|
1,966
|
|
|
0.1
|
%
|
|||
Tax Defense Network, LLC (c) (l) (p) (t)
|
|
Consumer
|
|
L+6.00% (10.00%), 4/30/2020
|
|
33,028
|
|
|
26,218
|
|
|
7,927
|
|
|
0.5
|
%
|
|||
Tillamook Country Smoker, LLC (c)
|
|
Food & Beverage
|
|
L+5.75% (8.57%), 5/19/2022
|
|
3,235
|
|
|
3,235
|
|
|
3,154
|
|
|
0.2
|
%
|
|||
Tillamook Country Smoker, LLC (c) (i)
|
|
Food & Beverage
|
|
L+5.75% (8.40%), 5/19/2022
|
|
10,193
|
|
|
10,089
|
|
|
9,942
|
|
|
0.7
|
%
|
|||
Trademark Global, LLC (c)
|
|
Consumer
|
|
L+5.50% (8.02%), 10/1/2022
|
|
2,188
|
|
|
2,187
|
|
|
2,171
|
|
|
0.1
|
%
|
|||
Transperfect Global, Inc. (c) (i)
|
|
Business Services
|
|
L+6.75% (9.25%), 5/7/2024
|
|
6,808
|
|
|
6,686
|
|
|
6,709
|
|
|
0.5
|
%
|
|||
Traverse Midstream Partners, LLC (j)
|
|
Energy
|
|
L+4.00% (6.60%), 9/27/2024
|
|
6,352
|
|
|
6,326
|
|
|
6,082
|
|
|
0.4
|
%
|
|||
Trilogy International Partners, LLC (a)
|
|
Telecom
|
|
8.88%, 5/1/2022
|
|
14,875
|
|
|
14,822
|
|
|
14,257
|
|
|
1.0
|
%
|
|||
TwentyEighty, Inc. (c) (l) (p)
|
|
Business Services
|
|
8.00%, 3/31/2020
|
|
6,553
|
|
|
5,460
|
|
|
6,422
|
|
|
0.4
|
%
|
|||
TwentyEighty, Inc. (c) (l) (p)
|
|
Business Services
|
|
L+8.00% (10.80%), 3/31/2020
|
|
304
|
|
|
274
|
|
|
300
|
|
|
0.0
|
%
|
|||
TwentyEighty, Inc. (c) (l) (p)
|
|
Business Services
|
|
8.75%, 3/31/2020
|
|
6,283
|
|
|
5,289
|
|
|
6,158
|
|
|
0.4
|
%
|
|||
US Salt, LLC (c)
|
|
Industrials
|
|
L+4.75% (7.27%), 12/1/2023
|
|
1,244
|
|
|
1,244
|
|
|
1,244
|
|
|
0.1
|
%
|
|||
US Salt, LLC (c) (i)
|
|
Industrials
|
|
L+4.75% (7.27%), 12/1/2023
|
|
5,150
|
|
|
5,107
|
|
|
5,150
|
|
|
0.3
|
%
|
|||
USF S&H Holdco, LLC (c)
|
|
Health/Fitness
|
|
L+5.75% (8.17%), 3/16/2023
|
|
485
|
|
|
485
|
|
|
478
|
|
|
0.0
|
%
|
|||
USF S&H Holdco, LLC (c) (i)
|
|
Health/Fitness
|
|
L+5.75% (8.54%), 3/19/2024
|
|
24,245
|
|
|
23,929
|
|
|
23,896
|
|
|
1.6
|
%
|
|||
Veritas US, Inc.
|
|
Technology
|
|
10.50%, 2/1/2024
|
|
7,289
|
|
|
7,144
|
|
|
4,701
|
|
|
0.3
|
%
|
|||
Veritas US, Inc. (j)
|
|
Technology
|
|
L+4.50% (7.30%), 1/27/2023
|
|
7,550
|
|
|
7,568
|
|
|
6,412
|
|
|
0.4
|
%
|
|||
Vertex Aerospace Services Corp. (i)
|
|
Industrials
|
|
L+4.75% (7.27%), 6/16/2025
|
|
8,815
|
|
|
8,774
|
|
|
8,705
|
|
|
0.6
|
%
|
December 31, 2018
|
|||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
Von Drehle Corp. (c) (i) (l)
|
|
Paper & Packaging
|
|
L+11.50% (14.30%), 3/6/2023
|
|
$
|
26,176
|
|
|
$
|
25,855
|
|
|
$
|
23,373
|
|
|
1.6
|
%
|
Vyaire Medical, Inc. (c) (j)
|
|
Healthcare
|
|
L+4.75% (7.14%), 4/16/2025
|
|
8,940
|
|
|
8,616
|
|
|
8,270
|
|
|
0.6
|
%
|
|||
WMK, LLC (c) (i)
|
|
Business Services
|
|
L+5.75% (8.29%), 9/5/2025
|
|
20,609
|
|
|
20,216
|
|
|
20,210
|
|
|
1.4
|
%
|
|||
Xplornet Communications, Inc. (a) (j)
|
|
Telecom
|
|
L+4.00% (6.80%), 9/9/2021
|
|
12,996
|
|
|
12,939
|
|
|
12,833
|
|
|
0.9
|
%
|
|||
YummyEarth, Inc. (c)
|
|
Food & Beverage
|
|
L+8.50% (11.31%), 8/1/2023
|
|
2,626
|
|
|
1,917
|
|
|
2,626
|
|
|
0.2
|
%
|
|||
YummyEarth, Inc. (c)
|
|
Food & Beverage
|
|
L+8.50% (11.31%), 8/1/2023
|
|
4,150
|
|
|
3,029
|
|
|
2,075
|
|
|
0.1
|
%
|
|||
Sub Total Senior Secured First Lien Debt
|
|
|
|
|
|
$
|
1,712,904
|
|
|
$
|
1,594,063
|
|
|
106.8
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Second Lien Debt - 18.5% (b)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Anchor Glass Container Corp. (c)
|
|
Paper & Packaging
|
|
L+7.75% (10.22%), 12/7/2024
|
|
$
|
20,000
|
|
|
$
|
19,845
|
|
|
$
|
11,600
|
|
|
0.8
|
%
|
Astro AB Merger Sub, Inc. (a) (c)
|
|
Financials
|
|
L+7.50% (10.03%), 4/30/2023
|
|
7,758
|
|
|
7,758
|
|
|
7,758
|
|
|
0.5
|
%
|
|||
Avatar Purchaser, Inc. (c) (j)
|
|
Software/Services
|
|
L+7.50% (10.16%), 11/17/2025
|
|
11,716
|
|
|
11,414
|
|
|
11,229
|
|
|
0.8
|
%
|
|||
Aveanna Healthcare, LLC (c) (j)
|
|
Healthcare
|
|
L+8.00% (10.52%), 3/17/2025
|
|
15,000
|
|
|
14,824
|
|
|
14,321
|
|
|
1.0
|
%
|
|||
Baker Hill Acquisition, LLC (c)
|
|
Financials
|
|
L+11.00% (13.40%), 3/1/2021
|
|
3,017
|
|
|
1,508
|
|
|
1,500
|
|
|
0.1
|
%
|
|||
Baker Hill Acquisition, LLC (c)
|
|
Financials
|
|
L+11.00% (13.40%), 3/1/2021
|
|
447
|
|
|
391
|
|
|
447
|
|
|
0.0
|
%
|
|||
Boston Market Corp. (c)
|
|
Food & Beverage
|
|
L+8.25% (10.96%), 1/16/2021
|
|
23,851
|
|
|
23,828
|
|
|
19,916
|
|
|
1.3
|
%
|
|||
BrandMuscle Holdings Inc. (c)
|
|
Business Services
|
|
L+8.50% (10.90%), 6/1/2022
|
|
24,500
|
|
|
24,241
|
|
|
24,010
|
|
|
1.6
|
%
|
|||
Cafe Enterprises, Inc. (c) (t)
|
|
Food & Beverage
|
|
14.00%, 3/31/2019
|
|
475
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Carlisle FoodService Products, Inc. (c)
|
|
Consumer
|
|
L+7.75% (10.26%), 3/20/2026
|
|
10,719
|
|
|
10,526
|
|
|
10,515
|
|
|
0.7
|
%
|
|||
CDS U.S. Intermediate Holdings, Inc. (a) (c)
|
|
Media/Entertainment
|
|
L+8.25% (11.05%), 7/8/2023
|
|
7,927
|
|
|
7,830
|
|
|
6,983
|
|
|
0.5
|
%
|
|||
Constellis Holdings, LLC (c)
|
|
Business Services
|
|
L+9.00% (11.52%), 4/21/2025
|
|
1,117
|
|
|
1,117
|
|
|
1,061
|
|
|
0.1
|
%
|
|||
Dentalcorp Perfect Smile, ULC (a) (c)
|
|
Healthcare
|
|
L+7.50% (10.02%), 6/1/2026
|
|
8,111
|
|
|
8,035
|
|
|
8,030
|
|
|
0.5
|
%
|
|||
Dentalcorp Perfect Smile, ULC (a) (c)
|
|
Healthcare
|
|
L+7.50% (10.02%), 6/1/2026
|
|
1,156
|
|
|
1,145
|
|
|
1,144
|
|
|
0.1
|
%
|
|||
Dimora Brands, Inc. (c)
|
|
Consumer
|
|
L+8.50% (11.02%), 8/25/2025
|
|
4,470
|
|
|
4,469
|
|
|
4,470
|
|
|
0.3
|
%
|
|||
Edelman Financial Services, LLC (a) (j)
|
|
Financials
|
|
L+6.75% (9.19%), 7/20/2026
|
|
6,764
|
|
|
6,732
|
|
|
6,426
|
|
|
0.4
|
%
|
|||
Frank Entertainment Group, LLC (c) (p) (t)
|
|
Media/Entertainment
|
|
10.00%, 6/30/2019
|
|
724
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Hyland Software, Inc.
|
|
Technology
|
|
L+7.00% (9.52%), 7/7/2025
|
|
5,837
|
|
|
5,874
|
|
|
5,728
|
|
|
0.4
|
%
|
|||
ICP Industrial, Inc. (c)
|
|
Chemicals
|
|
L+8.25% (10.68%), 5/3/2024
|
|
5,588
|
|
|
5,587
|
|
|
5,504
|
|
|
0.4
|
%
|
|||
IDERA, Inc. (c)
|
|
Technology
|
|
L+4.50% (7.03%), 6/1/2025
|
|
1,788
|
|
|
1,788
|
|
|
1,788
|
|
|
0.1
|
%
|
|||
KidKraft, Inc. (c) (l)
|
|
Consumer
|
|
12.00%, 3/30/2022
|
|
6,309
|
|
|
6,228
|
|
|
6,215
|
|
|
0.4
|
%
|
|||
MLN US Holdco, LLC (a)
|
|
Technology
|
|
L+8.75% (11.27%), 11/30/2026
|
|
3,000
|
|
|
2,941
|
|
|
2,918
|
|
|
0.2
|
%
|
|||
Navicure, Inc. (c)
|
|
Healthcare
|
|
L+7.50% (10.02%), 10/31/2025
|
|
1,341
|
|
|
1,341
|
|
|
1,321
|
|
|
0.1
|
%
|
December 31, 2018
|
|||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
Northstar Financial Services Group, LLC (c)
|
|
Financials
|
|
L+7.50% (10.12%), 5/25/2026
|
|
$
|
3,381
|
|
|
$
|
3,365
|
|
|
$
|
3,381
|
|
|
0.2
|
%
|
Oxbow Carbon LLC (c)
|
|
Industrials
|
|
L+7.50% (10.02%), 1/4/2024
|
|
1,395
|
|
|
1,430
|
|
|
1,409
|
|
|
0.1
|
%
|
|||
PetVet Care Centers, LLC (c)
|
|
Healthcare
|
|
L+6.25% (8.75%), 2/13/2026
|
|
3,539
|
|
|
3,523
|
|
|
3,449
|
|
|
0.2
|
%
|
|||
PI US Holdco III, Ltd. (a) (c)
|
|
Financials
|
|
L+7.25% (9.77%), 12/20/2025
|
|
6,696
|
|
|
6,637
|
|
|
6,661
|
|
|
0.5
|
%
|
|||
ProAmpac, LLC (c)
|
|
Paper & Packaging
|
|
L+8.50% (11.14%), 11/18/2024
|
|
3,352
|
|
|
3,351
|
|
|
3,352
|
|
|
0.2
|
%
|
|||
Recess Holdings, Inc. (c)
|
|
Industrials
|
|
L+7.75% (10.55%), 9/29/2025
|
|
15,008
|
|
|
14,812
|
|
|
14,783
|
|
|
1.0
|
%
|
|||
Renaissance Holding Corp. (j)
|
|
Software/Services
|
|
L+7.00% (9.50%), 5/29/2026
|
|
8,456
|
|
|
8,298
|
|
|
7,751
|
|
|
0.5
|
%
|
|||
River Cree Enterprises, LP (a) (c) (z)
|
|
Gaming/Lodging
|
|
10.00%, 5/17/2025
|
|
21,275
|
|
|
16,399
|
|
|
15,367
|
|
|
1.0
|
%
|
|||
SCA Pharmaceuticals, LLC (c)
|
|
Healthcare
|
|
L+9.00% (11.80%), 12/16/2020
|
|
2,235
|
|
|
2,152
|
|
|
2,051
|
|
|
0.1
|
%
|
|||
SSH Group Holdings, Inc. (c) (j)
|
|
Education
|
|
L+8.25% (10.77%), 7/30/2026
|
|
10,122
|
|
|
10,026
|
|
|
10,021
|
|
|
0.7
|
%
|
|||
St. Croix Hospice Acquisition Corp. (c)
|
|
Healthcare
|
|
L+8.75% (11.27%), 3/1/2024
|
|
2,056
|
|
|
1,965
|
|
|
2,056
|
|
|
0.1
|
%
|
|||
TierPoint, LLC (c)
|
|
Business Services
|
|
L+7.25% (9.77%), 5/5/2025
|
|
5,334
|
|
|
5,292
|
|
|
5,227
|
|
|
0.4
|
%
|
|||
Travelpro Products, Inc. (a) (c) (l)
|
|
Consumer
|
|
13.00%, 11/1/2022
|
|
2,357
|
|
|
2,356
|
|
|
2,357
|
|
|
0.2
|
%
|
|||
Travelpro Products, Inc. (a) (c) (l) (z)
|
|
Consumer
|
|
13.00%, 11/1/2022
|
|
CAD
|
2,731
|
|
|
2,088
|
|
|
2,003
|
|
|
0.1
|
%
|
||
U.S. Auto (c)
|
|
Financials
|
|
L+10.50% (12.85%), 6/8/2020
|
|
30,000
|
|
|
29,849
|
|
|
29,850
|
|
|
2.0
|
%
|
|||
US Salt, LLC (c)
|
|
Industrials
|
|
L+8.75% (11.14%), 12/1/2024
|
|
12,872
|
|
|
12,709
|
|
|
12,872
|
|
|
0.9
|
%
|
|||
Sub Total Senior Secured Second Lien Debt
|
|
|
|
|
|
$
|
291,674
|
|
|
$
|
275,474
|
|
|
18.5
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Debt - 9.3% (b)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
AHP Health Partners, Inc.
|
|
Healthcare
|
|
9.75%, 7/15/2026
|
|
$
|
6,589
|
|
|
$
|
6,503
|
|
|
$
|
6,725
|
|
|
0.4
|
%
|
BMC Software Finance, Inc.
|
|
Technology
|
|
9.75%, 9/1/2026
|
|
5,000
|
|
|
4,691
|
|
|
4,575
|
|
|
0.3
|
%
|
|||
Cafe Enterprises, Inc. (c) (t)
|
|
Food & Beverage
|
|
14.00%, 9/30/2019
|
|
3,681
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Capital Contractors, Inc. (c) (t)
|
|
Business Services
|
|
16.00%, 6/30/2020
|
|
2,200
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Captek Softgel International, Inc. (c) (l)
|
|
Health/Fitness
|
|
11.50%, 1/1/2023
|
|
6,992
|
|
|
6,991
|
|
|
6,625
|
|
|
0.4
|
%
|
|||
Community Intervention Services, Inc. (c) (l) (t)
|
|
Healthcare
|
|
13.00%, 1/31/2021
|
|
5,335
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Del Real, LLC (c)
|
|
Food & Beverage
|
|
11.00%, 4/1/2023
|
|
3,129
|
|
|
2,958
|
|
|
2,926
|
|
|
0.2
|
%
|
|||
Dyno Acquiror, Inc. (c) (l)
|
|
Consumer
|
|
12.00%, 2/1/2020
|
|
1,058
|
|
|
1,058
|
|
|
1,058
|
|
|
0.1
|
%
|
|||
Frontier Communications Corp. (a)
|
|
Telecom
|
|
8.50%, 4/15/2020
|
|
10,000
|
|
|
9,490
|
|
|
8,888
|
|
|
0.6
|
%
|
|||
Frontstreet Facility Solutions, Inc. (c) (p)
|
|
Business Services
|
|
13.00%, 3/1/2021
|
|
1,891
|
|
|
227
|
|
|
189
|
|
|
0.0
|
%
|
|||
HC2 Holdings, Inc.
|
|
Industrials
|
|
11.50%, 12/1/2021
|
|
10,796
|
|
|
10,666
|
|
|
10,067
|
|
|
0.7
|
%
|
|||
HemaSource, Inc. (c) (ac)
|
|
Healthcare
|
|
11.00%, 1/1/2024
|
|
2,235
|
|
|
2,131
|
|
|
2,168
|
|
|
0.1
|
%
|
|||
HTC Borrower, LLC (c) (l)
|
|
Consumer
|
|
13.00%, 9/1/2020
|
|
5,633
|
|
|
5,409
|
|
|
5,604
|
|
|
0.4
|
%
|
|||
Iridium Communications, Inc.
|
|
Telecom
|
|
10.25%, 4/15/2023
|
|
3,536
|
|
|
3,536
|
|
|
3,753
|
|
|
0.3
|
%
|
|||
MGTF Radio Company, LLC (c) (l) (t)
|
|
Media/Entertainment
|
|
16.00%, 3/30/2020
|
|
24,490
|
|
|
24,309
|
|
|
20,082
|
|
|
1.3
|
%
|
|||
Park Ave RE Holdings, LLC (c) (d) (l) (o)
|
|
Financials
|
|
13.00%, 12/31/2021
|
|
37,192
|
|
|
37,192
|
|
|
37,192
|
|
|
2.5
|
%
|
|||
PCX Aerostructures, LLC (c) (l)
|
|
Industrials
|
|
6.00%, 8/9/2021
|
|
7,414
|
|
|
5,601
|
|
|
5,560
|
|
|
0.4
|
%
|
December 31, 2018
|
|||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
Cafe Enterprises, Inc. (c) (e)
|
|
Food & Beverage
|
|
|
|
2,235
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Capital Contractors, Inc. (c) (e)
|
|
Business Services
|
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Capital Contractors, Inc. (c) (e)
|
|
Business Services
|
|
|
|
4,470
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Capstone Nutrition Class B and C Common Stock (fka Integrity Nutraceuticals) (c) (e) (o) (u)
|
|
Consumer
|
|
|
|
24,656
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Capstone Nutrition Common Stock (fka Integrity Nutraceuticals) (c) (e) (o) (u)
|
|
Consumer
|
|
|
|
6,023
|
|
|
1,630
|
|
|
—
|
|
|
—
|
%
|
|||
Captek Softgel International, Inc. (c) (e) (ac)
|
|
Health/Fitness
|
|
|
|
8,498
|
|
|
942
|
|
|
712
|
|
|
0.1
|
%
|
|||
Centerfield Media Holdings, LLC (c) (e)
|
|
Media/Entertainment
|
|
|
|
112
|
|
|
245
|
|
|
263
|
|
|
0.0
|
%
|
|||
CRD Holdings, LLC (a) (c) (o) (u)
|
|
Energy
|
|
9.00%
|
|
38,858,603
|
|
|
28,402
|
|
|
28,973
|
|
|
2.0
|
%
|
|||
CRS-SPV, Inc. (c) (e) (o)
|
|
Industrials
|
|
|
|
246
|
|
|
2,219
|
|
|
2,221
|
|
|
0.2
|
%
|
|||
CWS Holding Company, LLC (c) (e)
|
|
Consumer
|
|
|
|
335,255
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Danish CRJ, Ltd. (a) (c) (e) (p) (r)
|
|
Transportation
|
|
|
|
5,002
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Data Source Holdings, LLC (c) (e)
|
|
Business Services
|
|
|
|
10,617
|
|
|
140
|
|
|
124
|
|
|
0.0
|
%
|
|||
Del Real, LLC (c) (e) (u)
|
|
Food & Beverage
|
|
|
|
670,510
|
|
|
382
|
|
|
297
|
|
|
0.0
|
%
|
|||
Dyno Acquiror, Inc. (c) (e)
|
|
Consumer
|
|
|
|
134,102
|
|
|
58
|
|
|
64
|
|
|
0.0
|
%
|
|||
Frank Entertainment Group, LLC (c) (e) (p) (u)
|
|
Media/Entertainment
|
|
|
|
135,566
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Frank Entertainment Group, LLC (c) (e) (p) (u)
|
|
Media/Entertainment
|
|
|
|
625,810
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Frank Entertainment Group, LLC (c) (e) (p) (u)
|
|
Media/Entertainment
|
|
|
|
625,810
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Frontstreet Facility Solutions, Inc. (c) (e) (p)
|
|
Business Services
|
|
|
|
24,114
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
HemaSource, Inc. (c) (e) (ac)
|
|
Healthcare
|
|
|
|
223,503
|
|
|
168
|
|
|
185
|
|
|
0.0
|
%
|
|||
ICP Industrial, Inc. (c) (e)
|
|
Chemicals
|
|
|
|
288
|
|
|
279
|
|
|
301
|
|
|
0.0
|
%
|
|||
Integrated Efficiency Solutions, Inc. (c) (e)
|
|
Industrials
|
|
|
|
53,215
|
|
|
56
|
|
|
67
|
|
|
0.0
|
%
|
|||
Integrated Efficiency Solutions, Inc. (c) (e)
|
|
Industrials
|
|
|
|
2,975
|
|
|
3
|
|
|
3
|
|
|
0.0
|
%
|
|||
Kahala Ireland OpCo Designated Activity Company (a) (c) (e) (h) (o)
|
|
Transportation
|
|
|
|
—
|
|
|
—
|
|
|
20,329
|
|
|
1.4
|
%
|
|||
Kahala Ireland OpCo Designated Activity Company (a) (c) (e) (h) (o)
|
|
Transportation
|
|
|
|
3,250,000
|
|
|
2,831
|
|
|
3,250
|
|
|
0.2
|
%
|
|||
Kahala US OpCo, LLC (a) (c) (e) (k) (o)
|
|
Transportation
|
|
13.00%
|
|
4,413,472
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
K-Square Restaurant Partners, LP (c) (e) (ac)
|
|
Food & Beverage
|
|
|
|
447
|
|
|
175
|
|
|
16
|
|
|
0.0
|
%
|
|||
Lakeview Health Holdings, Inc. (c) (e)
|
|
Healthcare
|
|
|
|
447
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
MIC Holding, LLC (c) (e)
|
|
Consumer
|
|
|
|
1,470
|
|
|
3,686
|
|
|
3,947
|
|
|
0.3
|
%
|
|||
MIC Holding, LLC (c) (e)
|
|
Consumer
|
|
|
|
30,000
|
|
|
4,916
|
|
|
4,798
|
|
|
0.3
|
%
|
|||
Micross Solutions, LLC (c) (e)
|
|
Software/Services
|
|
|
|
442,430
|
|
|
223
|
|
|
310
|
|
|
0.0
|
%
|
|||
Mood Media Corp. (c) (e)
|
|
Media/Entertainment
|
|
|
|
121,021
|
|
|
27
|
|
|
11
|
|
|
0.0
|
%
|
|||
Motor Vehicle Software Corp. (c) (e) (ab)
|
|
Business Services
|
|
|
|
223,503
|
|
|
318
|
|
|
260
|
|
|
0.0
|
%
|
|||
New Star Metals, Inc. (c) (e)
|
|
Industrials
|
|
Expire 12/22/2036
|
|
100,216
|
|
|
151
|
|
|
702
|
|
|
0.0
|
%
|
|||
NexSteppe, Inc. (c) (e) (o)
|
|
Chemicals
|
|
|
|
237,240
|
|
|
737
|
|
|
—
|
|
|
—
|
%
|
|||
NMFC Senior Loan Program I, LLC (a) (o)
|
|
Diversified Investment Vehicles
|
|
|
|
50,000
|
|
|
50,000
|
|
|
50,573
|
|
|
3.4
|
%
|
December 31, 2018
|
|||||||||||||||||||
Portfolio Company (f) (q)
|
|
Industry
|
|
Investment Coupon Rate / Maturity (y)
|
|
Principal / Number of Shares
|
|
Amortized Cost
|
|
Fair Value
|
|
% of Net Assets (b)
|
|||||||
Nomacorc, LLC (c) (e) (u) (ab)
|
|
Industrials
|
|
|
|
356,816
|
|
|
$
|
56
|
|
|
$
|
68
|
|
|
0.0
|
%
|
|
Park Ave RE Holdings, LLC (c) (e) (o) (w)
|
|
Financials
|
|
|
|
1,000
|
|
|
102
|
|
|
15,578
|
|
|
1.0
|
%
|
|||
Park Ave RE Holdings, LLC (c) (e) (o) (w)
|
|
Financials
|
|
8.00%
|
|
47,290
|
|
|
23,645
|
|
|
23,645
|
|
|
1.6
|
%
|
|||
Passport Food Group, LLC (c) (e) (ac)
|
|
Food & Beverage
|
|
|
|
4,470
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
PCX Aerostructures, LLC (c) (e)
|
|
Industrials
|
|
|
|
27,250
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
PCX Aerostructures, LLC (c) (e)
|
|
Industrials
|
|
|
|
1,356
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
PCX Aerostructures, LLC (c) (e)
|
|
Industrials
|
|
|
|
315
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
PennantPark Credit Opportunities Fund II, LP (a) (g) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
8,436
|
|
|
8,436
|
|
|
8,705
|
|
|
0.6
|
%
|
|||
RMP Group, Inc. (c) (e) (u)
|
|
Financials
|
|
|
|
223
|
|
|
164
|
|
|
191
|
|
|
0.0
|
%
|
|||
RockYou, Inc. (c) (e)
|
|
Media/Entertainment
|
|
|
|
15,105
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Schweiger Dermatology Group, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
265,024
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
SCUF Gaming, Inc. (c) (e)
|
|
Consumer
|
|
|
|
6,060
|
|
|
21
|
|
|
49
|
|
|
0.0
|
%
|
|||
Smile Brands, Inc. (c) (e)
|
|
Healthcare
|
|
|
|
669
|
|
|
747
|
|
|
658
|
|
|
0.0
|
%
|
|||
Squan Holding Corp. (c) (e)
|
|
Telecom
|
|
|
|
180,835
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Squan Holding Corp. (c) (e)
|
|
Telecom
|
|
|
|
8,962
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
St. Croix Hospice Acquisition Corp. (c) (e)
|
|
Healthcare
|
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
St. Croix Hospice Acquisition Corp. (c) (e)
|
|
Healthcare
|
|
|
|
112
|
|
|
64
|
|
|
100
|
|
|
0.0
|
%
|
|||
SYNACOR, Inc. (e) (aa)
|
|
Technology
|
|
|
|
59,785
|
|
|
—
|
|
|
88
|
|
|
0.0
|
%
|
|||
Tax Advisors Group, LLC (c) (e) (u)
|
|
Financials
|
|
|
|
86
|
|
|
609
|
|
|
638
|
|
|
0.0
|
%
|
|||
Tax Defense Network, LLC (c) (e) (p)
|
|
Consumer
|
|
|
|
351,944
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Tax Defense Network, LLC (c) (e) (p)
|
|
Consumer
|
|
|
|
147,099
|
|
|
425
|
|
|
—
|
|
|
—
|
%
|
|||
TCG BDC, Inc. - Common Stock (fka Carlyle GMS Finance, Inc.) (a)
|
|
Financials
|
|
|
|
226
|
|
|
4,336
|
|
|
2,733
|
|
|
0.2
|
%
|
|||
Team Waste, LLC (c) (e) (p) (u)
|
|
Industrials
|
|
|
|
111,752
|
|
|
2,235
|
|
|
2,235
|
|
|
0.2
|
%
|
|||
Tennenbaum Waterman Fund, LP (a) (c) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
10,000
|
|
|
10,000
|
|
|
10,137
|
|
|
0.7
|
%
|
|||
THL Credit Greenway Fund II, LLC (a) (p)
|
|
Diversified Investment Vehicles
|
|
|
|
8,339
|
|
|
8,339
|
|
|
7,435
|
|
|
0.5
|
%
|
|||
Travelpro Products, Inc. (a)
|
|
Consumer
|
|
|
|
447,007
|
|
|
506
|
|
|
541
|
|
|
0.0
|
%
|
|||
TwentyEighty, Inc. (c) (p)
|
|
Business Services
|
|
|
|
54,586
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
TZ Holdings, Inc. - Preferred Shares (fka Zimbra, Inc.) (c) (e)
|
|
Technology
|
|
Expire 10/25/2023
|
|
1,000,000
|
|
|
10
|
|
|
179
|
|
|
0.0
|
%
|
|||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
39,769
|
|
|
132
|
|
|
18
|
|
|
0.0
|
%
|
|||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
3,155
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
4,206
|
|
|
31
|
|
|
15
|
|
|
0.0
|
%
|
|||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
99,236
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
United Biologics, LLC (c) (e) (u)
|
|
Healthcare
|
|
|
|
223
|
|
|
35
|
|
|
9
|
|
|
0.0
|
%
|
|||
USASF Holdco, LLC (c) (e) (u)
|
|
Financials
|
|
|
|
10,000
|
|
|
10
|
|
|
—
|
|
|
—
|
%
|
|||
USASF Holdco, LLC (c) (e) (u)
|
|
Financials
|
|
|
|
490
|
|
|
490
|
|
|
571
|
|
|
0.0
|
%
|
|||
USASF Holdco, LLC (c) (e) (u)
|
|
Financials
|
|
|
|
56
|
|
|
56
|
|
|
111
|
|
|
0.0
|
%
|
|||
Vantage Mobility International, LLC (c) (e)
|
|
Transportation
|
|
|
|
391,131
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Women's Marketing, Inc. (c) (e)
|
|
Media/Entertainment
|
|
|
|
3,643
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
Counterparty
|
|
Contract to Deliver
|
|
In Exchange For
|
|
Maturity Date
|
|
Unrealized Appreciation/(Depreciation)
|
||||
Goldman Sachs International
|
|
CAD 21,275
|
|
$
|
16,597
|
|
|
1/7/2019
|
|
$
|
993
|
|
(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, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. Qualifying assets represent 71.9% of the Company's total assets. The significant majority of all investments held are deemed to be illiquid.
|
(b)
|
Percentages are based on net assets of $1,492,719 as of December 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 December 31, 2018.
|
(f)
|
The Company has various unfunded commitments to portfolio companies. Please refer to Note 7 - Commitments and Contingencies for details of these unfunded commitments.
|
(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.
|
(l)
|
For the year ended December 31, 2018, the following investments paid or have the option to pay all or a portion of interest and dividends via payment-in-kind (“PIK”):
|
December 31, 2018
|
|||||||||||||||
Portfolio Company
|
|
Investment Type
|
|
Cash
|
|
PIK
|
|
All-in Rate
|
|
PIK Earned for the year ended December 31, 2018
|
|||||
Capstone Nutrition (fka Integrity Nutraceuticals)
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
15.03
|
%
|
|
15.03
|
%
|
|
$
|
—
|
|
Capstone Nutrition (fka Integrity Nutraceuticals)
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
15.03
|
%
|
|
15.03
|
%
|
|
—
|
|
|
Capstone Nutrition (fka Integrity Nutraceuticals)
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
15.03
|
%
|
|
15.03
|
%
|
|
—
|
|
|
DLC Acquisition, LLC
|
|
Senior Secured First Lien Debt
|
|
10.00
|
%
|
|
2.00
|
%
|
|
12.00
|
%
|
|
29
|
|
|
Greenwave Holdings, Inc. (s)
|
|
Senior Secured First Lien Debt
|
|
10.00
|
%
|
|
3.00
|
%
|
|
13.00
|
%
|
|
271
|
|
|
Integral Ad Science, Inc.
|
|
Senior Secured First Lien Debt
|
|
7.28
|
%
|
|
1.25
|
%
|
|
8.53
|
%
|
|
81
|
|
|
Integrated Efficiency Solutions, Inc.
|
|
Senior Secured First Lien Debt
|
|
12.05
|
%
|
|
—
|
%
|
|
12.05
|
%
|
|
—
|
|
|
Kahala Ireland OpCo Designated Activity Company
|
|
Senior Secured First Lien Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
—
|
|
|
LightSquared, LP
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
11.52
|
%
|
|
11.52
|
%
|
|
1,291
|
|
|
Mood Media Corp.
|
|
Senior Secured First Lien Debt
|
|
10.05
|
%
|
|
—
|
%
|
|
10.05
|
%
|
|
103
|
|
|
NexSteppe, Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
12.00
|
%
|
|
12.00
|
%
|
|
—
|
|
|
NexSteppe, Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
12.00
|
%
|
|
12.00
|
%
|
|
—
|
|
|
Pure Barre, LLC (s)
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
9.08
|
%
|
|
9.08
|
%
|
|
162
|
|
|
Pure Barre, LLC (s)
|
|
Senior Secured First Lien Debt
|
|
7.99
|
%
|
|
1.25
|
%
|
|
9.24
|
%
|
|
3
|
|
|
Squan Holding Corp.
|
|
Senior Secured First Lien Debt
|
|
8.40
|
%
|
|
1.00
|
%
|
|
9.40
|
%
|
|
163
|
|
|
Tax Defense Network, LLC
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
10.00
|
%
|
|
10.00
|
%
|
|
—
|
|
|
TwentyEighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
10.80
|
%
|
|
—
|
%
|
|
10.80
|
%
|
|
12
|
|
|
TwentyEighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
4.00
|
%
|
|
4.00
|
%
|
|
8.00
|
%
|
|
262
|
|
|
TwentyEighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
—
|
%
|
|
8.75
|
%
|
|
8.75
|
%
|
|
531
|
|
|
United Central Industrial Supply Company, LLC (s)
|
|
Senior Secured First Lien Debt
|
|
9.35
|
%
|
|
—
|
%
|
|
9.35
|
%
|
|
85
|
|
|
Von Drehle Corp.
|
|
Senior Secured First Lien Debt
|
|
14.03
|
%
|
|
—
|
%
|
|
14.03
|
%
|
|
131
|
|
|
KidKraft, Inc.
|
|
Senior Secured Second Lien Debt
|
|
11.00
|
%
|
|
1.00
|
%
|
|
12.00
|
%
|
|
26
|
|
|
Travelpro Products, Inc.
|
|
Senior Secured Second Lien Debt
|
|
11.00
|
%
|
|
2.00
|
%
|
|
13.00
|
%
|
|
7
|
|
|
Travelpro Products, Inc.
|
|
Senior Secured Second Lien Debt
|
|
11.00
|
%
|
|
2.00
|
%
|
|
13.00
|
%
|
|
20
|
|
|
Captek Softgel International, Inc.
|
|
Subordinated Debt
|
|
10.00
|
%
|
|
1.50
|
%
|
|
11.50
|
%
|
|
45
|
|
|
Community Intervention Services, Inc.
|
|
Subordinated Debt
|
|
—
|
%
|
|
13.00
|
%
|
|
13.00
|
%
|
|
—
|
|
|
Dyno Acquiror, Inc.
|
|
Subordinated Debt
|
|
10.50
|
%
|
|
1.50
|
%
|
|
12.00
|
%
|
|
7
|
|
|
Frozen Specialties, Inc. (s)
|
|
Subordinated Debt
|
|
10.00
|
%
|
|
4.00
|
%
|
|
14.00
|
%
|
|
22
|
|
|
HTC Borrower, LLC
|
|
Subordinated Debt
|
|
10.00
|
%
|
|
3.00
|
%
|
|
13.00
|
%
|
|
71
|
|
|
Orchid Underwriters Agency, LLC (s)
|
|
Subordinated Debt
|
|
—
|
%
|
|
11.50
|
%
|
|
11.50
|
%
|
|
1
|
|
|
Orchid Underwriters Agency, LLC (s)
|
|
Subordinated Debt
|
|
—
|
%
|
|
13.50
|
%
|
|
13.50
|
%
|
|
5
|
|
|
Park Ave RE Holdings, LLC
|
|
Subordinated Debt
|
|
13.00
|
%
|
|
—
|
%
|
|
13.00
|
%
|
|
—
|
|
|
PCX Aerostructures, LLC
|
|
Subordinated Debt
|
|
—
|
%
|
|
6.00
|
%
|
|
6.00
|
%
|
|
170
|
|
|
RMP Group, Inc.
|
|
Subordinated Debt
|
|
10.50
|
%
|
|
1.00
|
%
|
|
11.50
|
%
|
|
10
|
|
|
Rotolo Consultants, Inc. (s)
|
|
Subordinated Debt
|
|
11.00
|
%
|
|
3.00
|
%
|
|
14.00
|
%
|
|
13
|
|
|
Smile Brands, Inc. (s)
|
|
Subordinated Debt
|
|
10.00
|
%
|
|
2.00
|
%
|
|
12.00
|
%
|
|
17
|
|
|
Steel City Media
|
|
Subordinated Debt
|
|
9.00
|
%
|
|
7.00
|
%
|
|
16.00
|
%
|
|
829
|
|
|
Xplornet Communications, Inc.
|
|
Subordinated Debt
|
|
8.63
|
%
|
|
1.00
|
%
|
|
9.63
|
%
|
|
1,149
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
$
|
5,516
|
|
(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 the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be "non-controlled" when the Company owns 25% or less of the portfolio company's voting securities and "controlled" when the Company owns 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 the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as "non-affiliated" when the Company owns less than 5% of a portfolio company's voting securities and "affiliated" when the Company owns 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 consolidated 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)
|
Investment sold during the year ended December 31, 2018.
|
(t)
|
The investment is on non-accrual status as of December 31, 2018.
|
(u)
|
Investments are held in the taxable wholly-owned, consolidated subsidiary, 54th 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, 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.
|
(z)
|
The principal amount (par amount) is denominated in Canadian Dollars or CAD.
|
(aa)
|
The investment is not a restricted security. All other securities are restricted securities.
|
(ab)
|
The investment is held through a participation interest in which the Company has a contractual relationship only with the loan transferor, not the underlying borrower. The Company may be subject to the credit risk of the loan transferor as well as of the borrower.
|
(ac)
|
The investment is held through BSP TCAP Acquisition Holdings LP which, as further outlined in Note 1, is an affiliated acquisition entity utilized for the Triangle Transaction. Due to certain restrictions, such as limits on the number of partners allowable within the equity structures of the newly acquired investments, these investments are still held within the acquisition entity as of December 31, 2018.
|
(ad)
|
All amounts are in thousands except share amounts.
|
|
At December 31, 2018
|
|||||
|
Investments at
Fair Value
|
|
Percentage of
Total Portfolio
|
|||
Healthcare
|
$
|
357,065
|
|
|
15.3
|
%
|
Industrials
|
270,699
|
|
|
11.6
|
%
|
|
Business Services
|
264,296
|
|
|
11.3
|
%
|
|
Diversified Investment Vehicles
|
204,062
|
|
|
8.8
|
%
|
|
Financials
|
142,695
|
|
|
6.1
|
%
|
|
Transportation
|
140,824
|
|
|
6.0
|
%
|
|
Media/Entertainment
|
135,230
|
|
|
5.8
|
%
|
|
Technology
|
119,825
|
|
|
5.1
|
%
|
|
Energy
|
113,507
|
|
|
4.9
|
%
|
|
Telecom
|
112,838
|
|
|
4.8
|
%
|
|
Food & Beverage
|
98,653
|
|
|
4.2
|
%
|
|
Consumer
|
95,159
|
|
|
4.1
|
%
|
|
Chemicals
|
67,816
|
|
|
2.9
|
%
|
|
Gaming/Lodging
|
58,572
|
|
|
2.5
|
%
|
|
Paper & Packaging
|
44,882
|
|
|
1.9
|
%
|
|
Software/Services
|
39,523
|
|
|
1.7
|
%
|
|
Health/Fitness
|
31,711
|
|
|
1.4
|
%
|
|
Education
|
21,688
|
|
|
0.9
|
%
|
|
Publishing
|
9,775
|
|
|
0.4
|
%
|
|
Retail
|
5,894
|
|
|
0.3
|
%
|
|
Total
|
$
|
2,334,714
|
|
|
100.0
|
%
|
•
|
Each portfolio company or investment will be valued by the Adviser, with assistance from one or more independent valuation firms engaged by the Company's 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
|
$
|
—
|
|
|
$
|
642,755
|
|
|
$
|
1,121,537
|
|
|
$
|
—
|
|
|
$
|
1,764,292
|
|
Senior Secured Second Lien Debt
|
—
|
|
|
35,246
|
|
|
271,232
|
|
|
—
|
|
|
306,478
|
|
|||||
Subordinated Debt
|
—
|
|
|
11,051
|
|
|
97,100
|
|
|
—
|
|
|
108,151
|
|
|||||
Collateralized Securities
|
—
|
|
|
—
|
|
|
108,927
|
|
|
—
|
|
|
108,927
|
|
|||||
Equity/Other
|
2,624
|
|
|
—
|
|
|
187,300
|
|
|
68,412
|
|
|
258,336
|
|
|||||
Total
|
$
|
2,624
|
|
|
$
|
689,052
|
|
|
$
|
1,786,096
|
|
|
$
|
68,412
|
|
|
$
|
2,546,184
|
|
|
Fair Value Measurements
|
||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Measured at Net Asset Value (1)
|
|
Total
|
||||||||||
Senior Secured First Lien Debt
|
$
|
—
|
|
|
$
|
554,840
|
|
|
$
|
1,039,223
|
|
|
$
|
—
|
|
|
$
|
1,594,063
|
|
Senior Secured Second Lien Debt
|
—
|
|
|
22,823
|
|
|
252,651
|
|
|
—
|
|
|
275,474
|
|
|||||
Subordinated Debt
|
—
|
|
|
45,574
|
|
|
92,595
|
|
|
—
|
|
|
138,169
|
|
|||||
Collateralized Securities
|
—
|
|
|
—
|
|
|
127,212
|
|
|
—
|
|
|
127,212
|
|
|||||
Equity/Other
|
3,106
|
|
|
2,733
|
|
|
117,107
|
|
|
76,850
|
|
|
199,796
|
|
|||||
Total
|
$
|
3,106
|
|
|
$
|
625,970
|
|
|
$
|
1,628,788
|
|
|
$
|
76,850
|
|
|
$
|
2,334,714
|
|
|
Senior Secured First Lien Debt
|
|
Senior Secured Second Lien Debt
|
|
Subordinated Debt
|
|
Collateralized Securities
|
|
Equity/Other
|
|
Total
|
||||||||||||
Balance as of December 31, 2018
|
$
|
1,039,223
|
|
|
$
|
252,651
|
|
|
$
|
92,595
|
|
|
$
|
127,212
|
|
|
$
|
117,107
|
|
|
$
|
1,628,788
|
|
Net change in unrealized appreciation (depreciation) on investments
|
11,310
|
|
|
(13,032
|
)
|
|
2,896
|
|
|
13,773
|
|
|
29,402
|
|
|
44,349
|
|
||||||
Purchases and other adjustments to cost
|
399,096
|
|
|
95,904
|
|
|
25,976
|
|
|
54,094
|
|
|
76,674
|
|
|
651,744
|
|
||||||
Sales and repayments
|
(287,445
|
)
|
|
(73,393
|
)
|
|
(35,326
|
)
|
|
(60,418
|
)
|
|
(48,014
|
)
|
|
(504,596
|
)
|
||||||
Net realized gain (loss)
|
(45,639
|
)
|
|
464
|
|
|
(607
|
)
|
|
(25,734
|
)
|
|
12,131
|
|
|
(59,385
|
)
|
||||||
Transfers in
|
55,783
|
|
|
16,396
|
|
|
11,566
|
|
|
—
|
|
|
—
|
|
|
83,745
|
|
||||||
Transfers out
|
(50,791
|
)
|
|
(7,758
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(58,549
|
)
|
||||||
Balance as of December 31, 2019
|
$
|
1,121,537
|
|
|
$
|
271,232
|
|
|
$
|
97,100
|
|
|
$
|
108,927
|
|
|
$
|
187,300
|
|
|
$
|
1,786,096
|
|
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:
|
$
|
(29,473
|
)
|
|
$
|
(12,908
|
)
|
|
$
|
(1,595
|
)
|
|
$
|
(7,891
|
)
|
|
$
|
29,109
|
|
|
$
|
(22,758
|
)
|
|
Senior Secured First Lien Debt
|
|
Senior Secured Second Lien Debt
|
|
Subordinated Debt
|
|
Collateralized Securities
|
|
Equity/Other
|
|
Total
|
||||||||||||
Balance as of December 31, 2017
|
$
|
1,242,983
|
|
|
$
|
215,401
|
|
|
$
|
61,089
|
|
|
$
|
160,195
|
|
|
$
|
103,738
|
|
|
$
|
1,783,406
|
|
Net change in unrealized appreciation (depreciation) on investments
|
(1,768
|
)
|
|
(15,159
|
)
|
|
(1,404
|
)
|
|
5,618
|
|
|
(5,362
|
)
|
|
(18,075
|
)
|
||||||
Purchases and other adjustments to cost
|
452,140
|
|
|
102,561
|
|
|
57,183
|
|
|
22,103
|
|
|
49,838
|
|
|
683,825
|
|
||||||
Sales and repayments
|
(669,650
|
)
|
|
(58,890
|
)
|
|
(24,407
|
)
|
|
(29,822
|
)
|
|
(37,962
|
)
|
|
(820,731
|
)
|
||||||
Net realized gain (loss)
|
(3,876
|
)
|
|
961
|
|
|
134
|
|
|
(30,882
|
)
|
|
6,855
|
|
|
(26,808
|
)
|
||||||
Transfers in
|
110,613
|
|
|
7,777
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118,390
|
|
||||||
Transfers out
|
(91,219
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(91,219
|
)
|
||||||
Balance as of December 31, 2018
|
$
|
1,039,223
|
|
|
$
|
252,651
|
|
|
$
|
92,595
|
|
|
$
|
127,212
|
|
|
$
|
117,107
|
|
|
$
|
1,628,788
|
|
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:
|
$
|
(18,535
|
)
|
|
$
|
(14,850
|
)
|
|
$
|
(1,763
|
)
|
|
$
|
859
|
|
|
$
|
(2,169
|
)
|
|
$
|
(36,458
|
)
|
|
Investments at
Amortized Cost |
|
Investments at
Fair Value |
|
Fair Value
Percentage of Total Portfolio |
|||||
Senior Secured First Lien Debt
|
$
|
1,862,228
|
|
|
$
|
1,764,292
|
|
|
69.3
|
%
|
Senior Secured Second Lien Debt
|
335,366
|
|
|
306,478
|
|
|
12.0
|
|
||
Subordinated Debt
|
109,006
|
|
|
108,151
|
|
|
4.2
|
|
||
Collateralized Securities
|
122,870
|
|
|
108,927
|
|
|
4.3
|
|
||
Equity/Other
|
210,172
|
|
|
258,336
|
|
|
10.2
|
|
||
Total
|
$
|
2,639,642
|
|
|
$
|
2,546,184
|
|
|
100.0
|
%
|
|
Investments at
Amortized Cost |
|
Investments at
Fair Value |
|
Fair Value
Percentage of Total Portfolio |
|||||
Senior Secured First Lien Debt
|
$
|
1,712,904
|
|
|
$
|
1,594,063
|
|
|
68.3
|
%
|
Senior Secured Second Lien Debt
|
291,674
|
|
|
275,474
|
|
|
11.8
|
|
||
Subordinated Debt
|
143,803
|
|
|
138,169
|
|
|
5.9
|
|
||
Collateralized Securities
|
154,930
|
|
|
127,212
|
|
|
5.4
|
|
||
Equity/Other
|
177,021
|
|
|
199,796
|
|
|
8.6
|
|
||
Total
|
$
|
2,480,332
|
|
|
$
|
2,334,714
|
|
|
100.0
|
%
|
|
|
|
|
Range
|
|
|
||||||||
Asset Category
|
|
Fair Value
|
|
Primary Valuation Technique
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted Average (a)
|
||
Senior Secured First Lien Debt
|
|
$
|
858,510
|
|
|
Discounted Cash Flow
|
|
Market Yield
|
|
6.50%
|
|
57.85%
|
|
10.00%
|
Senior Secured First Lien Debt
|
|
$
|
119,724
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
13.00%
|
|
19.39%
|
|
13.76%
|
Senior Secured First Lien Debt (c)
|
|
$
|
51,492
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Senior Secured First Lien Debt
|
|
$
|
48,582
|
|
|
Yield Analysis
|
|
Market Yield
|
|
6.15%
|
|
15.65%
|
|
10.72%
|
Senior Secured First Lien Debt
|
|
$
|
40,373
|
|
|
Waterfall Analysis
|
|
EBITDA Multiple
|
|
3.00x
|
|
5.50x
|
|
3.86x
|
Senior Secured First Lien Debt
|
|
$
|
2,856
|
|
|
Waterfall Analysis
|
|
Revenue Multiple
|
|
0.42x
|
|
0.92x
|
|
0.71x
|
Senior Secured Second Lien Debt
|
|
$
|
201,399
|
|
|
Discounted Cash Flow
|
|
Market Yield
|
|
6.17%
|
|
28.00%
|
|
11.40%
|
Senior Secured Second Lien Debt
|
|
$
|
46,566
|
|
|
Yield Analysis
|
|
Market Yield
|
|
10.43%
|
|
19.73%
|
|
11.38%
|
Senior Secured Second Lien Debt
|
|
$
|
18,353
|
|
|
Waterfall Analysis
|
|
EBITDA Multiple
|
|
4.85x
|
|
7.86x
|
|
5.16x
|
Senior Secured Second Lien Debt
|
|
$
|
4,914
|
|
|
Waterfall Analysis
|
|
Revenue Multiple
|
|
0.48x
|
|
1.59x
|
|
0.94x
|
Subordinated Debt (b)
|
|
$
|
37,237
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
8.50%
|
|
8.50%
|
|
8.50%
|
Subordinated Debt (b)
|
|
$
|
22,500
|
|
|
Waterfall Analysis
|
|
Tangible Net Asset Value Multiple
|
|
1.70x
|
|
1.70x
|
|
1.70x
|
Subordinated Debt
|
|
$
|
13,581
|
|
|
Yield Analysis
|
|
Market Yield
|
|
12.18%
|
|
19.59%
|
|
14.45%
|
Subordinated Debt (b)
|
|
$
|
12,550
|
|
|
Discounted Cash Flow
|
|
Market Yield
|
|
9.00%
|
|
9.00%
|
|
9.00%
|
Subordinated Debt
|
|
$
|
11,232
|
|
|
Waterfall Analysis
|
|
EBITDA Multiple
|
|
5.69x
|
|
7.94x
|
|
6.76x
|
Collateralized Securities
|
|
$
|
85,163
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
4.60%
|
|
22.50%
|
|
12.51%
|
Collateralized Securities (c)
|
|
$
|
23,764
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Equity/Other
|
|
$
|
81,355
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
12.50%
|
|
13.00%
|
|
12.87%
|
Equity/Other
|
|
$
|
37,833
|
|
|
Waterfall Analysis
|
|
Tangible Net Asset Value Multiple
|
|
1.70x
|
|
1.94x
|
|
1.71x
|
Equity/Other
|
|
$
|
28,943
|
|
|
Discounted Cash Flow
|
|
Market Yield
|
|
6.66%
|
|
13.75%
|
|
10.11%
|
Equity/Other
|
|
$
|
20,332
|
|
|
Waterfall Analysis
|
|
EBITDA Multiple
|
|
3.30x
|
|
12.06x
|
|
7.62x
|
Equity/Other (b)
|
|
$
|
11,133
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
8.50%
|
|
8.50%
|
|
8.50%
|
Equity/Other
|
|
$
|
3,949
|
|
|
Waterfall Analysis
|
|
Revenue Multiple
|
|
0.16x
|
|
2.50x
|
|
1.56x
|
Equity/Other (b)
|
|
$
|
3,755
|
|
|
Waterfall Analysis
|
|
TBV Multiple
|
|
4.30x
|
|
4.30x
|
|
4.30x
|
Total
|
|
$
|
1,786,096
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Weighted averages are calculated based on fair value of investments.
|
(b)
|
This asset category contains one investment.
|
(c)
|
This instrument(s) was held at cost.
|
|
|
|
|
Range
|
|
|
||||||||
Asset Category
|
|
Fair Value
|
|
Primary Valuation Technique
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted Average (a)
|
||
Senior Secured First Lien Debt (b)
|
|
$
|
555,066
|
|
|
Discounted Cash Flow
|
|
Market Yield
|
|
6.98%
|
|
18.95%
|
|
10.42%
|
Senior Secured First Lien Debt (b)
|
|
$
|
288,547
|
|
|
Yield Analysis
|
|
Market Yield
|
|
6.50%
|
|
19.43%
|
|
11.50%
|
Senior Secured First Lien Debt (b)
|
|
$
|
111,549
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
17.00%
|
|
19.00%
|
|
18.00%
|
Senior Secured First Lien Debt (b)
|
|
$
|
6,142
|
|
|
Waterfall Analysis
|
|
Revenue Multiple
|
|
0.38x
|
|
0.89x
|
|
0.77x
|
Senior Secured First Lien Debt (b)
|
|
$
|
5,944
|
|
|
Waterfall Analysis
|
|
EBITDA Multiple
|
|
0.29x
|
|
6.05x
|
|
3.45x
|
Senior Secured Second Lien Debt (d)
|
|
$
|
171,022
|
|
|
Yield Analysis
|
|
Market Yield
|
|
10.00%
|
|
23.04%
|
|
13.39%
|
Senior Secured Second Lien Debt (d)
|
|
$
|
66,029
|
|
|
Discounted Cash Flow
|
|
Market Yield
|
|
10.05%
|
|
15.44%
|
|
12.21%
|
Senior Secured Second Lien Debt (d)
|
|
$
|
1,947
|
|
|
Waterfall Analysis
|
|
Revenue Multiple
|
|
1.6x
|
|
1.7x
|
|
1.65x
|
Subordinated Debt (c) (e)
|
|
$
|
37,192
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
8.00%
|
|
9.00%
|
|
N/A
|
Subordinated Debt (e)
|
|
$
|
31,623
|
|
|
Yield Analysis
|
|
Market Yield
|
|
11.63%
|
|
21.84%
|
|
15.32%
|
Subordinated Debt (c) (e)
|
|
$
|
5,560
|
|
|
Waterfall Analysis
|
|
EBITDA Multiple
|
|
9.54x
|
|
9.54x
|
|
N/A
|
Subordinated Debt (c) (e)
|
|
$
|
189
|
|
|
Asset Recovery / Take Out
|
|
Asset Recovery Percentage
|
|
36.96%
|
|
36.96%
|
|
N/A
|
Collateralized Securities
|
|
$
|
127,212
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
7.50%
|
|
33.00%
|
|
17.85%
|
Equity/Other (f)
|
|
$
|
28,973
|
|
|
Discounted Cash Flow
|
|
Market Yield
|
|
11.07%
|
|
12.07%
|
|
11.57%
|
Equity/Other (f)
|
|
$
|
23,579
|
|
|
Waterfall Analysis
|
|
Discount Rate
|
|
17.00%
|
|
19.00%
|
|
18.00%
|
Equity/Other (f)
|
|
$
|
15,819
|
|
|
Waterfall Analysis
|
|
EBITDA Multiple
|
|
4.25x
|
|
12.0x
|
|
6.47x
|
Equity/Other (f)
|
|
$
|
2,235
|
|
|
Waterfall Analysis
|
|
Appraisal Value
|
|
21,923.96
|
|
21,923.96
|
|
N/A
|
Equity/Other (f)
|
|
$
|
682
|
|
|
Waterfall Analysis
|
|
TBV Multiple
|
|
1.45x
|
|
1.45x
|
|
1.45x
|
Equity/Other (f)
|
|
$
|
42
|
|
|
Waterfall Analysis
|
|
Revenue Multiple
|
|
0.12x
|
|
0.12x
|
|
0.12x
|
Equity/Other (f)
|
|
$
|
11
|
|
|
Option Pricing Method
|
|
Volatility
|
|
50.00%
|
|
70.00%
|
|
60.00%
|
(a)
|
Weighted averages are calculated based on fair value of investments.
|
(b)
|
The remaining $72.0 million of senior secured first lien debt was valued using a Scenario-Based analysis technique factoring in various unobservable inputs.
|
(c)
|
Weighted average not applicable as this asset category contains one investment.
|
(d)
|
The remaining $13.7 million of senior secured second lien debt was valued using a Scenario-Based analysis technique factoring in various unobservable inputs.
|
(e)
|
The remaining $18.0 million of subordinated debt was valued using a Scenario-Based analysis technique factoring in various unobservable inputs.
|
(f)
|
The remaining $45.8 million of equity/other investments was valued using the Current Method.
|
•
|
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 the Company's 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 Consolidated Statements of Assets and Liabilities
|
||||||||
Wells Fargo Credit Facility
|
|
5/9/2023
|
|
$
|
600,000
|
|
|
$
|
436,652
|
|
|
$
|
(6,738
|
)
|
|
$
|
429,914
|
|
Citi Credit Facility
|
|
5/31/2022
|
|
400,000
|
|
|
250,500
|
|
|
(2,271
|
)
|
|
248,229
|
|
||||
2024 Notes
|
|
12/15/2024
|
|
100,000
|
|
|
98,818
|
|
|
(184
|
)
|
|
98,634
|
|
||||
2023 Notes
|
|
5/30/2023
|
|
60,000
|
|
|
59,778
|
|
|
(644
|
)
|
|
59,134
|
|
||||
2022 Notes
|
|
12/30/2022
|
|
150,000
|
|
|
149,505
|
|
|
(1,367
|
)
|
|
148,138
|
|
||||
2020 Notes
|
|
9/1/2020
|
|
100,000
|
|
|
99,789
|
|
|
(84
|
)
|
|
99,705
|
|
||||
Totals
|
|
|
|
$
|
1,410,000
|
|
|
$
|
1,095,042
|
|
|
$
|
(11,288
|
)
|
|
$
|
1,083,754
|
|
|
|
Maturity Date
|
|
Total Aggregate Borrowing Capacity
|
|
Total Principal Outstanding
|
|
Less Deferred Financing Costs
|
|
Amount per Consolidated Statements of Assets and Liabilities
|
||||||||
Wells Fargo Credit Facility
|
|
5/9/2023
|
|
$
|
545,000
|
|
|
$
|
294,651
|
|
|
$
|
(8,163
|
)
|
|
$
|
286,488
|
|
Citi Credit Facility
|
|
5/28/2020
|
|
400,000
|
|
|
293,500
|
|
|
(1,127
|
)
|
|
292,373
|
|
||||
2023 Notes
|
|
5/30/2023
|
|
60,000
|
|
|
59,713
|
|
|
(833
|
)
|
|
58,880
|
|
||||
2022 Notes
|
|
12/30/2022
|
|
150,000
|
|
|
149,340
|
|
|
(1,824
|
)
|
|
147,516
|
|
||||
2020 Notes
|
|
9/1/2020
|
|
100,000
|
|
|
99,474
|
|
|
(209
|
)
|
|
99,265
|
|
||||
Totals
|
|
|
|
$
|
1,255,000
|
|
|
$
|
896,678
|
|
|
$
|
(12,156
|
)
|
|
$
|
884,522
|
|
|
Year ended December 31, 2019
|
||||||||||||||
|
Interest Rate
|
|
Non-Usage Rate
|
|
Interest Expense
|
|
Deferred Financing Costs (3)
|
|
Other Fees (4)
|
||||||
Wells Fargo Credit Facility
|
(1)
|
|
(2)
|
|
$
|
19,628
|
|
|
$
|
1,955
|
|
|
$
|
1,142
|
|
Citi Credit Facility
|
L+1.60%
|
|
0.50%
|
|
13,163
|
|
|
858
|
|
|
487
|
|
|||
2024 Notes
|
4.85%
|
|
n/a
|
|
368
|
|
|
3
|
|
|
—
|
|
|||
2023 Notes
|
5.38%
|
|
n/a
|
|
3,290
|
|
|
189
|
|
|
9
|
|
|||
2022 Notes
|
4.75%
|
|
n/a
|
|
7,290
|
|
|
456
|
|
|
9
|
|
|||
2020 Notes
|
6.00%
|
|
n/a
|
|
6,332
|
|
|
125
|
|
|
8
|
|
|||
Totals
|
|
|
|
|
$
|
50,071
|
|
|
$
|
3,586
|
|
|
$
|
1,655
|
|
|
Year ended December 31, 2018
|
||||||||||||||
|
Interest Rate
|
|
Non-Usage Rate
|
|
Interest Expense
|
|
Deferred Financing Costs (3)
|
|
Other Fees (4)
|
||||||
Wells Fargo Credit Facility
|
(1)
|
|
(2)
|
|
$
|
17,106
|
|
|
$
|
1,659
|
|
|
$
|
912
|
|
Citi Credit Facility
|
L+1.60%
|
|
0.50%
|
|
13,690
|
|
|
799
|
|
|
299
|
|
|||
UBS Credit Facility
|
L+4.05%
|
|
n/a
|
|
3,696
|
|
|
110
|
|
|
57
|
|
|||
2023 Notes
|
5.38%
|
|
n/a
|
|
2,057
|
|
|
115
|
|
|
—
|
|
|||
2022 Notes
|
4.75%
|
|
n/a
|
|
7,290
|
|
|
456
|
|
|
12
|
|
|||
2020 Notes
|
6.00%
|
|
n/a
|
|
6,316
|
|
|
126
|
|
|
—
|
|
|||
JPMC PB Account
|
L+0.90%
|
|
n/a
|
|
570
|
|
|
—
|
|
|
—
|
|
|||
Totals
|
|
|
|
|
$
|
50,725
|
|
|
$
|
3,265
|
|
|
$
|
1,280
|
|
|
Year ended December 31, 2017
|
||||||||||||||
|
Interest Rate
|
|
Non-Usage Rate
|
|
Interest Expense
|
|
Deferred Financing Costs (3)
|
|
Other Fees (4)
|
||||||
Wells Fargo Credit Facility
|
(1)
|
|
(2)
|
|
$
|
11,678
|
|
|
$
|
1,224
|
|
|
$
|
749
|
|
Citi Credit Facility
|
L+1.60%
|
|
0.50%
|
|
8,958
|
|
|
745
|
|
|
538
|
|
|||
UBS Credit Facility
|
L+4.05%
|
|
n/a
|
|
12,361
|
|
|
415
|
|
|
106
|
|
|||
2022 Notes
|
4.75%
|
|
n/a
|
|
243
|
|
|
16
|
|
|
—
|
|
|||
2020 Notes
|
6.00%
|
|
n/a
|
|
6,316
|
|
|
125
|
|
|
15
|
|
|||
JPMC PB Account
|
L+0.90%
|
|
n/a
|
|
362
|
|
|
—
|
|
|
—
|
|
|||
Totals
|
|
|
|
|
$
|
39,918
|
|
|
$
|
2,525
|
|
|
$
|
1,408
|
|
|
Level
|
|
Carrying Amount at December 31, 2019
|
|
Fair Value at
December 31, 2019
|
||||
Wells Fargo Credit Facility
|
3
|
|
$
|
436,652
|
|
|
$
|
436,652
|
|
Citi Credit Facility
|
3
|
|
250,500
|
|
|
250,500
|
|
||
2024 Notes
|
3
|
|
98,818
|
|
|
99,722
|
|
||
2023 Notes
|
3
|
|
59,778
|
|
|
60,721
|
|
||
2022 Notes
|
3
|
|
149,505
|
|
|
151,937
|
|
||
2020 Notes
|
3
|
|
99,789
|
|
|
101,389
|
|
||
|
|
|
$
|
1,095,042
|
|
|
$
|
1,100,921
|
|
|
Level
|
|
Carrying Amount at December 31, 2018
|
|
Fair Value at
December 31, 2018
|
||||
Wells Fargo Credit Facility
|
3
|
|
$
|
294,651
|
|
|
$
|
294,651
|
|
Citi Credit Facility
|
3
|
|
293,500
|
|
|
293,500
|
|
||
2023 Notes
|
3
|
|
59,713
|
|
|
59,820
|
|
||
2022 Notes
|
3
|
|
149,340
|
|
|
147,717
|
|
||
2020 Notes
|
3
|
|
99,474
|
|
|
102,287
|
|
||
|
|
|
$
|
896,678
|
|
|
$
|
897,975
|
|
December 31, 2019
|
||||||||||||
Portfolio Company Name
|
|
Investment Type
|
|
Commitment Type
|
|
Total Commitment
|
|
Remaining Commitment
|
||||
AMI Entertainment Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
$
|
1,234
|
|
|
$
|
1,234
|
|
Arch Global Precision, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
1,071
|
|
|
1,071
|
|
||
Arch Global Precision, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,008
|
|
|
1,008
|
|
||
CCW, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,500
|
|
|
200
|
|
||
CDHA Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
7,580
|
|
|
7,027
|
|
||
CDHA Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,264
|
|
|
834
|
|
||
Corfin Industries, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
956
|
|
|
956
|
|
||
CRS-SPV, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
224
|
|
|
162
|
|
||
Florida Food Products, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,647
|
|
|
231
|
|
||
ICR Operations, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,753
|
|
|
2,655
|
|
||
Ideal Tridon Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
80
|
|
|
34
|
|
||
Ideal Tridon Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,810
|
|
|
2,649
|
|
||
Integral Ad Science, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,085
|
|
|
1,085
|
|
||
Lakeview Health Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
315
|
|
|
186
|
|
||
MED Parentco, LP
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
1,437
|
|
|
1,131
|
|
||
Midwest Can Company, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
547
|
|
|
547
|
|
||
Miller Environmental Group, Inc.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
1,131
|
|
|
1,131
|
|
||
Miller Environmental Group, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,324
|
|
|
1,324
|
|
||
Muth Mirror Systems, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,299
|
|
|
1,299
|
|
||
New Amsterdam Software Bidco, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
1,790
|
|
|
1,790
|
|
||
Norvax, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,152
|
|
|
1,152
|
|
||
ORG Chemical Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
6,503
|
|
|
3,083
|
|
||
Planet Equity Group, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,325
|
|
|
2,325
|
|
||
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,316
|
|
|
1,316
|
|
||
Questex, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,584
|
|
|
1,895
|
|
||
Reddy Ice Corp.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,518
|
|
|
2,518
|
|
||
Reddy Ice Corp.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,762
|
|
|
1,762
|
|
||
Safety Products/JHC Acquisition Corp.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,171
|
|
|
1,214
|
|
||
SitusAMC Holdings Corp.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
752
|
|
|
752
|
|
||
Subsea Global Solutions, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
4,744
|
|
|
2,352
|
|
||
Subsea Global Solutions, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
963
|
|
|
575
|
|
||
Tap Rock Resources, LLC
|
|
Equity/Other
|
|
Equity
|
|
42,100
|
|
|
21,428
|
|
||
Tillamook Country Smoker, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,618
|
|
|
539
|
|
||
University of St. Augustine Acquisition Corp.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,615
|
|
|
2,615
|
|
||
Vantage Mobility International, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
196
|
|
|
196
|
|
||
WMK, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
4,528
|
|
|
2,618
|
|
||
WMK, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,618
|
|
|
1,484
|
|
||
Total
|
|
|
|
|
|
$
|
111,520
|
|
|
$
|
74,378
|
|
December 31, 2018
|
||||||||||||
Portfolio Company Name
|
|
Investment Type
|
|
Commitment Type
|
|
Total Commitment
|
|
Remaining Commitment
|
||||
AccentCare, Inc.
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
$
|
4,301
|
|
|
$
|
948
|
|
AMI Entertainment Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,234
|
|
|
1,234
|
|
||
Aveanna Healthcare, LLC
|
|
Senior Secured Second Lien Debt
|
|
Delayed draw term loan
|
|
1,373
|
|
|
1,373
|
|
||
Capstone Nutrition (fka Integrity Nutraceuticals)
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
5,089
|
|
|
1,804
|
|
||
CCW, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
3,000
|
|
|
1,700
|
|
||
CDHA Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
7,583
|
|
|
7,583
|
|
||
CDHA Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,264
|
|
|
834
|
|
||
Cold Spring Brewing, Co.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
238
|
|
|
238
|
|
||
Corfin Industries, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
956
|
|
|
382
|
|
||
Dentalcorp Perfect Smile, ULC
|
|
Senior Secured Second Lien Debt
|
|
Delayed draw term loan
|
|
2,028
|
|
|
872
|
|
||
Deva Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
559
|
|
|
559
|
|
||
DLC Acquisition, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
694
|
|
|
694
|
|
||
Florida Food Products, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,647
|
|
|
626
|
|
||
ICR Operations, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,753
|
|
|
2,642
|
|
||
Ideal Tridon Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,731
|
|
|
710
|
|
||
Integral Ad Science, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,085
|
|
|
1,085
|
|
||
Lakeview Health Holdings, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
310
|
|
|
310
|
|
||
Midwest Can Company, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
547
|
|
|
547
|
|
||
MMM Holdings, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,761
|
|
|
1,761
|
|
||
PennantPark Credit Opportunities Fund II, LP
|
|
Equity/Other
|
|
Equity
|
|
10,764
|
|
|
538
|
|
||
PT Network, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,316
|
|
|
658
|
|
||
Questex, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,584
|
|
|
2,153
|
|
||
Subsea Global Solutions, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
963
|
|
|
748
|
|
||
TwentyEighty, Inc.
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
443
|
|
|
443
|
|
||
USF S&H Holdco, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
1,616
|
|
|
1,131
|
|
||
WMK, LLC
|
|
Senior Secured First Lien Debt
|
|
Delayed draw term loan
|
|
2,618
|
|
|
2,618
|
|
||
WMK, LLC
|
|
Senior Secured First Lien Debt
|
|
Revolver term loan
|
|
2,618
|
|
|
2,618
|
|
||
Total
|
|
|
|
|
|
$
|
62,075
|
|
|
$
|
36,809
|
|
|
|
Shares
|
|
Value
|
|||
Shares Sold
|
|
—
|
|
|
$
|
—
|
|
Shares Issued through DRIP
|
|
4,373,786
|
|
|
34,905
|
|
|
Share Repurchases
|
|
(4,490,328
|
)
|
|
(36,286
|
)
|
|
|
|
(116,542
|
)
|
|
$
|
(1,381
|
)
|
|
|
Shares
|
|
Value
|
|||
Shares Sold
|
|
10,975,610
|
|
|
$
|
90,000
|
|
Shares Issued through DRIP
|
|
4,720,005
|
|
|
38,983
|
|
|
Share Repurchases
|
|
(5,105,554
|
)
|
|
(42,313
|
)
|
|
|
|
10,590,061
|
|
|
$
|
86,670
|
|
|
Common stock - shares
|
|
Common stock - par
|
|
Additional paid in capital
|
|
Total distributable earnings (loss)
|
|
Net assets attributable to non-controlling interest
|
|
Total Stockholders' Equity
|
|||||||||||
Balance as of December 31, 2016
|
177,120,791
|
|
|
$
|
177
|
|
|
$
|
1,729,865
|
|
|
$
|
(203,129
|
)
|
|
$
|
2,821
|
|
|
$
|
1,529,734
|
|
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
106,011
|
|
|
29
|
|
|
106,040
|
|
|||||
Net realized loss from investment transactions
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,135
|
)
|
|
—
|
|
|
(53,135
|
)
|
|||||
Net change in unrealized appreciation (depreciation) on investments, and foreign exchange currency contracts, net of deferred taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
25,513
|
|
|
(29
|
)
|
|
25,484
|
|
|||||
Repurchases
|
(3,548,885
|
)
|
|
(3
|
)
|
|
(30,209
|
)
|
|
—
|
|
|
—
|
|
|
(30,212
|
)
|
|||||
Distributions to stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(135,850
|
)
|
|
—
|
|
|
(135,850
|
)
|
|||||
Reinvested dividends
|
6,162,092
|
|
|
6
|
|
|
52,449
|
|
|
—
|
|
|
—
|
|
|
52,455
|
|
|||||
Tax adjustment
|
—
|
|
|
—
|
|
|
688
|
|
|
(688
|
)
|
|
—
|
|
|
—
|
|
|||||
Balance as of December 31, 2017
|
179,733,998
|
|
|
$
|
180
|
|
|
$
|
1,752,793
|
|
|
$
|
(261,278
|
)
|
|
$
|
2,821
|
|
|
$
|
1,494,516
|
|
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
103,385
|
|
|
25
|
|
|
103,410
|
|
|||||
Net realized loss from investment transactions
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,310
|
)
|
|
—
|
|
|
(24,310
|
)
|
|||||
Net change in unrealized appreciation (depreciation) on investments, and foreign exchange currency contracts, net of deferred taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(50,829
|
)
|
|
840
|
|
|
(49,989
|
)
|
|||||
Issuance of common stock, net of issuance costs
|
10,975,610
|
|
|
11
|
|
|
89,989
|
|
|
—
|
|
|
—
|
|
|
90,000
|
|
|||||
Repurchases
|
(5,105,554
|
)
|
|
(5
|
)
|
|
(42,308
|
)
|
|
—
|
|
|
—
|
|
|
(42,313
|
)
|
|||||
Distributions to stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(117,578
|
)
|
|
—
|
|
|
(117,578
|
)
|
|||||
Reinvested dividends
|
4,720,005
|
|
|
4
|
|
|
38,979
|
|
|
—
|
|
|
—
|
|
|
38,983
|
|
|||||
Tax adjustment
|
—
|
|
|
—
|
|
|
(27,483
|
)
|
|
27,483
|
|
|
—
|
|
|
—
|
|
|||||
Balance as of December 31, 2018
|
190,324,059
|
|
|
$
|
190
|
|
|
$
|
1,811,970
|
|
|
$
|
(323,127
|
)
|
|
$
|
3,686
|
|
|
$
|
1,492,719
|
|
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
108,248
|
|
|
9
|
|
|
108,257
|
|
|||||
Net realized loss from investment transactions
|
—
|
|
|
—
|
|
|
—
|
|
|
(64,525
|
)
|
|
—
|
|
|
(64,525
|
)
|
|||||
Net change in unrealized appreciation on investments and foreign exchange currency contracts, net of deferred taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
48,749
|
|
|
3,017
|
|
|
51,766
|
|
|||||
Acquisition of non-controlling interest
|
—
|
|
|
—
|
|
|
6,024
|
|
|
—
|
|
|
(6,712
|
)
|
|
(688
|
)
|
|||||
Repurchases
|
(4,490,328
|
)
|
|
(4
|
)
|
|
(36,282
|
)
|
|
—
|
|
|
—
|
|
|
(36,286
|
)
|
|||||
Distributions to stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(123,465
|
)
|
|
—
|
|
|
(123,465
|
)
|
|||||
Reinvested dividends
|
4,373,786
|
|
|
4
|
|
|
34,901
|
|
|
—
|
|
|
—
|
|
|
34,905
|
|
|||||
Tax adjustment
|
—
|
|
|
—
|
|
|
30,699
|
|
|
(30,699
|
)
|
|
—
|
|
|
—
|
|
|||||
Balance as of December 31, 2019
|
190,207,517
|
|
|
$
|
190
|
|
|
$
|
1,847,312
|
|
|
$
|
(384,819
|
)
|
|
$
|
—
|
|
|
$
|
1,462,683
|
|
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
|
|
June 15, 2018
|
|
July 16, 2018
|
|
20,864,620
|
|
|
2,348,835
|
|
|
$
|
8.26
|
|
|
$
|
19,401.38
|
|
December 14, 2018
|
|
January 18, 2019
|
|
21,586,074
|
|
|
2,241,000
|
|
|
$
|
8.20
|
|
|
$
|
18,376.18
|
|
June 18, 2019
|
|
July 23, 2019
|
|
31,263,410
|
|
|
2,199,337
|
|
|
$
|
7.96
|
|
|
$
|
17,506.70
|
|
|
For the years ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Basic and diluted
|
|
|
|
|
|
||||||
Net increase in net assets resulting from operations
|
$
|
92,472
|
|
|
$
|
28,246
|
|
|
$
|
78,389
|
|
Weighted average common shares outstanding
|
189,940,267
|
|
|
180,861,382
|
|
|
179,179,656
|
|
|||
Net increase in net assets resulting from operations per share
|
$
|
0.49
|
|
|
$
|
0.16
|
|
|
$
|
0.44
|
|
|
|
For the years ended December 31,
|
|||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
Ordinary income distributions
|
|
$
|
123,465
|
|
|
100.0
|
%
|
|
$
|
117,578
|
|
|
100.0
|
%
|
|
$
|
135,850
|
|
|
100.0
|
%
|
Capital gains distributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Return of capital
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total distributions
|
|
$
|
123,465
|
|
|
100.0
|
%
|
|
$
|
117,578
|
|
|
100.0
|
%
|
|
$
|
135,850
|
|
|
100.0
|
%
|
|
|
For the years ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Book income from operating activities
|
|
$
|
92,472
|
|
|
$
|
28,246
|
|
|
$
|
78,389
|
|
Net unrealized (gain) loss on investments
|
|
517
|
|
|
135
|
|
|
(25,512
|
)
|
|||
Nondeductible expenses
|
|
1,771
|
|
|
1,605
|
|
|
1,619
|
|
|||
Temporary differences
|
|
36,875
|
|
|
91,232
|
|
|
91,787
|
|
|||
Taxable income before deductions for distributions paid
|
|
$
|
131,635
|
|
|
$
|
121,218
|
|
|
$
|
146,283
|
|
|
|
For the years ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Undistributed ordinary income
|
|
$
|
31,010
|
|
|
$
|
19,831
|
|
|
$
|
33,312
|
|
Undistributed long-term capital loss carryforward
|
|
(206,292
|
)
|
|
(82,139
|
)
|
|
(75,415
|
)
|
|||
Total undistributed net earnings (loss carryforward)
|
|
(175,282
|
)
|
|
(62,308
|
)
|
|
(42,103
|
)
|
|||
Net unrealized loss on investments
|
|
(204,294
|
)
|
|
(287,449
|
)
|
|
(216,881
|
)
|
|||
Total undistributed taxable income
|
|
$
|
(379,576
|
)
|
|
$
|
(349,757
|
)
|
|
$
|
(258,984
|
)
|
|
|
December 31, 2019
|
||
Tax cost
|
|
$
|
2,749,721
|
|
Gross unrealized appreciation
|
|
84,961
|
|
|
Gross unrealized depreciation
|
|
(289,255
|
)
|
|
|
Total distributable loss
|
|
Paid in capital
|
||||
2019
|
|
$
|
(466
|
)
|
|
$
|
466
|
|
|
For the years ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016 (9)
|
|
2015
|
||||||||||
Per share data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net asset value, beginning of period
|
$
|
7.82
|
|
|
$
|
8.30
|
|
|
$
|
8.62
|
|
|
$
|
8.97
|
|
|
$
|
9.74
|
|
Results of operations (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Net investment income
|
0.57
|
|
|
0.57
|
|
|
0.59
|
|
|
0.67
|
|
|
0.66
|
|
|||||
Net realized and unrealized gain (loss), net of deferred taxes
|
(0.07
|
)
|
|
(0.41
|
)
|
|
(0.15
|
)
|
|
(0.14
|
)
|
|
(0.60
|
)
|
|||||
Net change in unrealized depreciation attributable to non-controlling interests
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|||||
Net increase in net assets resulting from operations
|
0.49
|
|
|
0.16
|
|
|
0.44
|
|
|
0.52
|
|
|
0.05
|
|
|||||
Stockholder distributions (2)
|
|
|
|
|
|
|
|
|
|
||||||||||
Distributions from net investment income
|
(0.65
|
)
|
|
(0.65
|
)
|
|
(0.76
|
)
|
|
(0.87
|
)
|
|
(0.77
|
)
|
|||||
Distributions from net realized gain on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|||||
Return of capital
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.09
|
)
|
|||||
Net decrease in net assets resulting from stockholder distributions
|
(0.65
|
)
|
|
(0.65
|
)
|
|
(0.76
|
)
|
|
(0.87
|
)
|
|
(0.87
|
)
|
|||||
Capital share transactions
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of common stock (3)
|
—
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.18
|
|
|||||
Acquisition of non-controlling interest
|
0.03
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Repurchases of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.12
|
)
|
|||||
Offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|||||
Net increase in net assets resulting from capital share transactions
|
0.03
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
|||||
Net asset value, end of period
|
$
|
7.69
|
|
|
$
|
7.82
|
|
|
$
|
8.30
|
|
|
$
|
8.62
|
|
|
$
|
8.97
|
|
Shares outstanding at end of period
|
190,207,517
|
|
|
190,324,059
|
|
|
179,733,998
|
|
|
177,120,791
|
|
|
179,142,028
|
|
|||||
Total return (5)
|
6.60
|
%
|
|
1.96
|
%
|
|
5.24
|
%
|
|
6.02
|
%
|
|
0.67
|
%
|
|||||
Ratio/Supplemental data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net assets attributable to BDCA, end of period (in thousands)
|
$
|
1,462,683
|
|
|
$
|
1,489,033
|
|
|
$
|
1,491,695
|
|
|
$
|
1,526,913
|
|
|
$
|
1,606,366
|
|
Total net assets, end of period (in thousands)
|
$
|
1,462,683
|
|
|
$
|
1,492,719
|
|
|
$
|
1,494,516
|
|
|
$
|
1,529,734
|
|
|
$
|
1,610,485
|
|
Ratio of net investment income to average net assets (4)(7)
|
7.26
|
%
|
|
6.92
|
%
|
|
7.01
|
%
|
|
7.64
|
%
|
|
7.11
|
%
|
|||||
Ratio of total expenses to average net assets (4)(7)(8)
|
9.14
|
%
|
|
8.94
|
%
|
|
7.79
|
%
|
|
6.98
|
%
|
|
5.08
|
%
|
|||||
Ratio of incentive fees to average net assets (4)
|
1.82
|
%
|
|
1.45
|
%
|
|
1.30
|
%
|
|
1.14
|
%
|
|
0.41
|
%
|
|||||
Ratio of debt related expenses to average net assets
|
3.71
|
%
|
|
3.70
|
%
|
|
2.90
|
%
|
|
2.38
|
%
|
|
1.65
|
%
|
|||||
Portfolio turnover rate (6)
|
32.24
|
%
|
|
45.58
|
%
|
|
40.06
|
%
|
|
24.99
|
%
|
|
32.21
|
%
|
(1)
|
The per share data was derived by using the weighted average shares outstanding during the period. For the years ended December 31, 2019, 2018, 2017, and 2016 net investment income per share was $0.57, $0.57, $0.59, and $0.67. Net investment income per share excluding the expense waiver and reimbursements equals $0.64 for the year ended December 31, 2015.
|
(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.
|
(4)
|
For the years ended December 31, 2019, 2018, 2017 and 2016 there was no expense waiver. For the year ended December 31, 2015, excluding the expense waiver and reimbursement, the ratio of net investment income, total expenses, and incentive fees to average net assets is 6.89%, 5.30%, and 0.63%, respectively.
|
(5)
|
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. The total return based on net asset value for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, includes the effect of expense waivers and reimbursements which equaled 0.00%, 0.00%, 0.00%, 0.00%, and 0.22%, respectively.
|
(6)
|
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.
|
(7)
|
Offering costs are not included as an expense in the calculation of this ratio.
|
(8)
|
Ratio of total expenses to average net assets is calculated using total operating expenses, including income tax expense over average net assets.
|
(9)
|
Effective November 1, 2016, the investment advisor of the Company changed.
|
Quarter Ended
|
|
Total Investment Income
|
|
Net Investment Income
|
|
Net Realized and Unrealized Gain (Loss)
|
|
Net Increase (Decrease) In Net Assets Resulting from Operations
|
|
Net Investment Income per Share
|
|
Net Increase (Decrease) in Net Assets Resulting from Operations per Share
|
|
Net Asset Value per Common Share at End of Quarter
|
||||||||||||||
December 31, 2019
|
|
$
|
58,160
|
|
|
$
|
26,052
|
|
|
$
|
(10,526
|
)
|
|
$
|
15,526
|
|
|
$
|
0.14
|
|
|
$
|
0.08
|
|
|
$
|
7.69
|
|
September 30, 2019
|
|
63,192
|
|
|
27,940
|
|
|
(39,990
|
)
|
|
(12,050
|
)
|
|
0.15
|
|
|
(0.06
|
)
|
|
7.75
|
|
|||||||
June 30, 2019
|
|
62,052
|
|
|
27,092
|
|
|
6,072
|
|
|
33,164
|
|
|
0.14
|
|
|
0.17
|
|
|
7.97
|
|
|||||||
March 31, 2019
|
|
61,101
|
|
|
27,164
|
|
|
28,668
|
|
|
55,832
|
|
|
0.14
|
|
|
0.29
|
|
|
7.96
|
|
|||||||
December 31, 2018
|
|
60,404
|
|
|
25,617
|
|
|
(66,043
|
)
|
|
(40,426
|
)
|
|
0.14
|
|
|
(0.22
|
)
|
|
7.82
|
|
|||||||
September 30, 2018
|
|
59,182
|
|
|
25,799
|
|
|
2,684
|
|
|
28,483
|
|
|
0.14
|
|
|
0.16
|
|
|
8.20
|
|
|||||||
June 30, 2018
|
|
58,922
|
|
|
25,815
|
|
|
(7,602
|
)
|
|
18,213
|
|
|
0.14
|
|
|
0.10
|
|
|
8.20
|
|
|||||||
March 31, 2018
|
|
58,504
|
|
|
26,154
|
|
|
(4,178
|
)
|
|
21,976
|
|
|
0.15
|
|
|
0.12
|
|
|
8.26
|
|
|
|
Total Amount Outstanding Exclusive of Treasury Securities
|
|
Asset Coverage Ratio Per Unit (1)
|
|
Involuntary Liquidation Preference Per Unit (2)
|
|
Asset Market Value Per Unit (3)
|
||||||
Wells Fargo Credit Facility
|
|
$
|
436,652
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
N/A
|
Citi Credit Facility
|
|
250,500
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2024 Notes
|
|
98,818
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2023 Notes
|
|
59,778
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2022 Notes
|
|
149,505
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2020 Notes
|
|
99,789
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
|
|
$
|
1,095,042
|
|
|
$
|
2,336
|
|
|
$
|
—
|
|
|
N/A
|
|
|
Total Amount Outstanding Exclusive of Treasury Securities
|
|
Asset Coverage Ratio Per Unit (1)
|
|
Involuntary Liquidation Preference Per Unit (2)
|
|
Asset Market Value Per Unit (3)
|
||||||
Wells Fargo Credit Facility
|
|
$
|
294,651
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
N/A
|
Citi Credit Facility
|
|
293,500
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2023 Notes
|
|
59,713
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2022 Notes
|
|
149,340
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2020 Notes
|
|
99,474
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
|
|
$
|
896,678
|
|
|
$
|
2,688
|
|
|
$
|
—
|
|
|
N/A
|
|
|
Total Amount Outstanding Exclusive of Treasury Securities
|
|
Asset Coverage Ratio Per Unit (1)
|
|
Involuntary Liquidation Preference Per Unit (2)
|
|
Asset Market Value Per Unit (3)
|
||||||
Wells Fargo Credit Facility
|
|
$
|
188,051
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
N/A
|
Citi Credit Facility
|
|
336,003
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
UBS Credit Facility
|
|
232,500
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2022 Notes
|
|
149,175
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2020 Notes
|
|
99,158
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
JPMC PB Account
|
|
36,262
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
|
|
$
|
1,041,149
|
|
|
$
|
2,435
|
|
|
$
|
—
|
|
|
N/A
|
|
|
Total Amount Outstanding Exclusive of Treasury Securities
|
|
Asset Coverage Ratio Per Unit (1)
|
|
Involuntary Liquidation Preference Per Unit (2)
|
|
Asset Market Value Per Unit (3)
|
||||||
Wells Fargo Credit Facility
|
|
$
|
298,152
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
N/A
|
Citi Credit Facility
|
|
286,003
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
UBS Credit Facility
|
|
232,500
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2020 Notes
|
|
98,842
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
|
|
$
|
915,497
|
|
|
$
|
2,671
|
|
|
$
|
—
|
|
|
N/A
|
|
|
Total Amount Outstanding Exclusive of Treasury Securities
|
|
Asset Coverage Ratio Per Unit (1)
|
|
Involuntary Liquidation Preference Per Unit (2)
|
|
Asset Market Value Per Unit (3)
|
||||||
Wells Fargo Credit Facility
|
|
$
|
263,087
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
N/A
|
Citi Credit Facility
|
|
270,625
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
UBS Credit Facility
|
|
210,000
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
2020 Notes
|
|
98,526
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|||
|
|
$
|
842,238
|
|
|
$
|
2,912
|
|
|
$
|
—
|
|
|
N/A
|
(1)
|
Asset coverage per unit is the ratio of the carrying value of the Company's total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness.
|
(2)
|
The amount to which such class of senior security would be entitled upon the voluntary liquidation of the issuer in preference to any security junior to it. The “—” in this column indicates that the SEC expressly does not require this information to be disclosed for certain types of senior securities.
|
(3)
|
Not applicable because senior securities are not registered for public trading.
|
Portfolio Company (1)
|
|
Type of Asset
|
|
Industry
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2018
|
|
Gross additions*
|
|
Gross reductions**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss) (4)
|
|
Fair Value at December 31, 2019
|
||||||||||||||
Control Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
California Resources Development JV, LLC (2) (5) (7)
|
|
Equity/Other
|
|
Energy
|
|
$
|
887
|
|
|
$
|
28,973
|
|
|
$
|
—
|
|
|
$
|
(28,402
|
)
|
|
$
|
—
|
|
|
$
|
(571
|
)
|
|
$
|
—
|
|
Capstone Nutrition Common Stock (fka Integrity Nutraceuticals, Inc.) (2) (5) (7) (8)
|
|
Equity/Other
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
|
(1,471
|
)
|
|
1,630
|
|
|
—
|
|
|||||||
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) - L+12.50% (15.08%), 9/25/2020 (2) (5) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
—
|
|
|
3,219
|
|
|
1,804
|
|
|
(5,471
|
)
|
|
838
|
|
|
(390
|
)
|
|
—
|
|
|||||||
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) - L+12.50% (15.08%), 9/19/2020 (2) (5) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
(12
|
)
|
|
3,459
|
|
|
—
|
|
|
(1,612
|
)
|
|
(14,794
|
)
|
|
12,947
|
|
|
—
|
|
|||||||
Capstone Nutrition (fka Integrity Nutraceuticals, Inc.) - L+12.50% (15.08%), 9/25/2020 (2) (5) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
—
|
|
|
7,692
|
|
|
—
|
|
|
(3,282
|
)
|
|
(30,365
|
)
|
|
25,955
|
|
|
—
|
|
|||||||
Capstone Nutrition Class B and C Common Stock (fka Integrity Nutraceuticals, Inc.) (2) (5) (7) (8)
|
|
Equity/Other
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
CRD Holdings, LLC - 9.00% (2) (7)
|
|
Equity/Other
|
|
Energy
|
|
3,341
|
|
|
—
|
|
|
41,560
|
|
|
(13,494
|
)
|
|
—
|
|
|
877
|
|
|
28,943
|
|
|||||||
CRS-SPV, Inc. (2) (7) (8)
|
|
Equity/Other
|
|
Industrials
|
|
26
|
|
|
2,221
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,221
|
|
|||||||
CRS-SPV, Inc. - L+4.50% (6.30%), 3/8/2020 (2) (7)
|
|
Senior Secured First Lien Debt
|
|
Industrials
|
|
2
|
|
|
—
|
|
|
67
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
62
|
|
|||||||
Kahala Ireland OpCo Designated Activity Company - L+8.00% (13.00%), 12/22/2028 (2) (3) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Transportation
|
|
11,695
|
|
|
111,549
|
|
|
38,000
|
|
|
(44,000
|
)
|
|
—
|
|
|
—
|
|
|
105,549
|
|
|||||||
Kahala Ireland OpCo Designated Activity Company (2) (3) (7) (8)
|
|
Equity/Other
|
|
Transportation
|
|
—
|
|
|
20,329
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36,897
|
|
|
57,226
|
|
Portfolio Company (1)
|
|
Type of Asset
|
|
Industry
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2018
|
|
Gross additions*
|
|
Gross reductions**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss) (4)
|
|
Fair Value at December 31, 2019
|
||||||||||||||
Kahala Ireland OpCo Designated Activity Company (2) (3) (7) (8)
|
|
Equity/Other
|
|
Transportation
|
|
$
|
—
|
|
|
$
|
3,250
|
|
|
$
|
—
|
|
|
$
|
(36
|
)
|
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
3,250
|
|
Kahala US OpCo, LLC - 13.00% (2) (3) (7) (8)
|
|
Equity/Other
|
|
Transportation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
MGTF Holdco, LLC (2) (7) (8)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
MGTF Radio Company, LLC - L+6.00% (7.80%), 4/1/2024 (2) (7)
|
|
Senior Secured First Lien Debt
|
|
Media/Entertainment
|
|
3,754
|
|
|
—
|
|
|
62,291
|
|
|
(4,472
|
)
|
|
12
|
|
|
(3,660
|
)
|
|
54,171
|
|
|||||||
MGTF Radio Company, LLC - P+3.50% (9.00%), 3/29/2020 (2) (5) (7)
|
|
Senior Secured First Lien Debt
|
|
Media/Entertainment
|
|
(9
|
)
|
|
—
|
|
|
37,577
|
|
|
(37,977
|
)
|
|
21
|
|
|
379
|
|
|
—
|
|
|||||||
MGTF Radio Company, LLC - 16.00%, 3/30/2020 (2) (5) (7)
|
|
Subordinated Debt
|
|
Media/Entertainment
|
|
188
|
|
|
—
|
|
|
20,082
|
|
|
(24,309
|
)
|
|
—
|
|
|
4,227
|
|
|
—
|
|
|||||||
NexSteppe, Inc. (2) (7) (8)
|
|
Equity/Other
|
|
Chemicals
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
NexSteppe, Inc. - 12.00% 3/31/2020 (2) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Chemicals
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
NexSteppe, Inc. - 12.00% 3/31/2020 (2) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Chemicals
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
NMFC Senior Loan Program I, LLC (2)
|
|
Equity/Other
|
|
Diversified Investment Vehicles
|
|
5,864
|
|
|
50,573
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,263
|
)
|
|
47,310
|
|
|||||||
Park Ave RE Holdings, LLC - 13.00% 12/31/2021 (2) (6) (7)
|
|
Subordinated Debt
|
|
Financials
|
|
4,858
|
|
|
37,192
|
|
|
1,750
|
|
|
(1,705
|
)
|
|
—
|
|
|
—
|
|
|
37,237
|
|
|||||||
Park Ave RE Holdings, LLC (2) (7) (8)
|
|
Equity/Other
|
|
Financials
|
|
—
|
|
|
15,578
|
|
|
2,500
|
|
|
(4,246
|
)
|
|
4,486
|
|
|
(7,185
|
)
|
|
11,133
|
|
|||||||
Park Ave RE Holdings, LLC (2) (5) (7) (8)
|
|
Equity/Other
|
|
Financials
|
|
—
|
|
|
23,645
|
|
|
—
|
|
|
(23,645
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Siena Capital Finance, LLC - 12.50% 8/16/2021 (2) (7)
|
|
Subordinated Debt
|
|
Financials
|
|
2,346
|
|
|
—
|
|
|
22,492
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
22,500
|
|
|||||||
Siena Capital Finance, LLC (2) (7)
|
|
Equity/Other
|
|
Financials
|
|
4,732
|
|
|
—
|
|
|
36,631
|
|
|
—
|
|
|
(94
|
)
|
|
378
|
|
|
36,915
|
|
|||||||
WPNT, LLC (2) (7) (8)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total Control Investments
|
|
|
|
|
|
$
|
37,672
|
|
|
$
|
307,680
|
|
|
$
|
264,754
|
|
|
$
|
(192,815
|
)
|
|
$
|
(41,367
|
)
|
|
$
|
68,265
|
|
|
$
|
406,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Answers Corp. (7)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
$
|
818
|
|
|
$
|
1,909
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,182
|
)
|
|
$
|
727
|
|
B&M CLO, Ltd. 2014-1A SUB - 0.00%, 4/16/2026 (5) (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
46
|
|
|
6,029
|
|
|
—
|
|
|
(5,839
|
)
|
|
(4,685
|
)
|
|
4,495
|
|
|
—
|
|
|||||||
Capstone Nutrition Development, LLC (7) (8)
|
|
Equity/Other
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
4,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,788
|
|
|||||||
CVP Cascade CLO, Ltd. 2013-CLO1 SUB - 0.00%, 1/16/2026 (5) (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
221
|
|
|
1,166
|
|
|
—
|
|
|
(539
|
)
|
|
(435
|
)
|
|
(192
|
)
|
|
—
|
|
|||||||
CVP Cascade CLO, Ltd. 2013-CLO1 Side Letter - 0.00%, 1/16/2026 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
12
|
|
|
68
|
|
|
—
|
|
|
(405
|
)
|
|
—
|
|
|
337
|
|
|
—
|
|
|||||||
CVP Cascade CLO, Ltd. 2014-2A Side Letter - 0.00%, 7/18/2026 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
43
|
|
|
274
|
|
|
—
|
|
|
(550
|
)
|
|
—
|
|
|
276
|
|
|
—
|
|
|||||||
Danish CRJ, Ltd. (7) (8)
|
|
Equity/Other
|
|
Transportation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Figueroa CLO, Ltd. 2014-1A FR - L+10.00% (12.30%), 1/15/2027 (5) (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
857
|
|
|
7,508
|
|
|
—
|
|
|
(5,730
|
)
|
|
(2,270
|
)
|
|
492
|
|
|
—
|
|
|||||||
Figueroa CLO, Ltd. 2014-1A SUB - 0.00%, 1/15/2027 (5) (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
324
|
|
|
7,468
|
|
|
—
|
|
|
(6,289
|
)
|
|
(5,280
|
)
|
|
4,101
|
|
|
—
|
|
Portfolio Company (1)
|
|
Type of Asset
|
|
Industry
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2018
|
|
Gross additions*
|
|
Gross reductions**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss) (4)
|
|
Fair Value at December 31, 2019
|
||||||||||||||
Figueroa CLO, Ltd. 2014-1A Side Letter - 0.00%, 1/15/2027 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
$
|
37
|
|
|
$
|
483
|
|
|
$
|
—
|
|
|
$
|
(550
|
)
|
|
$
|
—
|
|
|
$
|
67
|
|
|
$
|
—
|
|
Frank Entertainment Group, LLC - 6.00% 12/31/2019 (5) (7)
|
|
Senior Secured First Lien Debt
|
|
Media/Entertainment
|
|
—
|
|
|
1,441
|
|
|
—
|
|
|
(347
|
)
|
|
(1,489
|
)
|
|
395
|
|
|
—
|
|
|||||||
Frank Entertainment Group, LLC - L+9.00% (11.03%), 12/31/2019 (5) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
867
|
|
|
—
|
|
|
(867
|
)
|
|
—
|
|
|
—
|
|
|||||||
Frank Entertainment Group, LLC - 12.00% 12/31/2019 (5) (6) (7)
|
|
Senior Secured Second Lien Debt
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Frank Entertainment Group, LLC (5) (7) (8)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Frank Entertainment Group, LLC (5) (7) (8)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Frank Entertainment Group, LLC (5) (7) (8)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Frontstreet Facility Solutions, Inc. - 13.00%, 3/1/2021 (5) (7)
|
|
Subordinated Debt
|
|
Telcom
|
|
26
|
|
|
189
|
|
|
—
|
|
|
(123
|
)
|
|
(104
|
)
|
|
38
|
|
|
—
|
|
|||||||
Frontstreet Facility Solutions, Inc. (5) (7) (8)
|
|
Equity/Other
|
|
Telcom
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(128
|
)
|
|
128
|
|
|
—
|
|
|
—
|
|
|||||||
MidOcean Credit CLO 2013-2A INC - 0.76%, 1/29/2025 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
432
|
|
|
16,534
|
|
|
—
|
|
|
(3,630
|
)
|
|
—
|
|
|
(1,069
|
)
|
|
11,835
|
|
|||||||
MidOcean Credit CLO III, LLC - 13.99%, 7/21/2026 (5) (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
431
|
|
|
14,651
|
|
|
—
|
|
|
(17,458
|
)
|
|
544
|
|
|
2,263
|
|
|
—
|
|
|||||||
MidOcean Credit CLO 2015-4A INC - 0.00%, 4/15/2027 (5) (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
—
|
|
|
8,595
|
|
|
—
|
|
|
(6,795
|
)
|
|
(5,310
|
)
|
|
3,510
|
|
|
—
|
|
|||||||
NewStar Arlington Senior Loan Program, LLC 14-1A SUB - 16.56%, 7/25/2025 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
3,546
|
|
|
24,788
|
|
|
—
|
|
|
(447
|
)
|
|
—
|
|
|
(4,644
|
)
|
|
19,697
|
|
|||||||
NewStar Arlington Senior Loan Program, LLC 14-1A FR - L+11.00% (12.94%), 4/25/2031 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
664
|
|
|
4,425
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
169
|
|
|
4,612
|
|
|||||||
Newstar Fairfield Fund CLO, Ltd. 2015-1RA F - L+7.50% (9.47%), 1/20/2027 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
1,244
|
|
|
8,580
|
|
|
162
|
|
|
—
|
|
|
—
|
|
|
467
|
|
|
9,209
|
|
|||||||
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB - 21.81%, 1/20/2027 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
1,639
|
|
|
11,895
|
|
|
—
|
|
|
(3,032
|
)
|
|
—
|
|
|
(2,256
|
)
|
|
6,607
|
|
|||||||
OFSI Fund, Ltd. 2014-6A SUB - 0.00%, 3/20/2025 (5) (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
—
|
|
|
3,008
|
|
|
—
|
|
|
(1,535
|
)
|
|
(8,468
|
)
|
|
6,995
|
|
|
—
|
|
|||||||
OFSI Fund, Ltd. 2014-6A Side Letter - 0.00%, 3/20/2025 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
—
|
|
|
199
|
|
|
—
|
|
|
(238
|
)
|
|
—
|
|
|
39
|
|
|
—
|
|
|||||||
PCX Aerostructures, LLC - 6.00%, 8/9/2021 (6) (7)
|
|
Subordinated Debt
|
|
Industrials
|
|
464
|
|
|
—
|
|
|
6,023
|
|
|
—
|
|
|
—
|
|
|
(115
|
)
|
|
5,908
|
|
|||||||
PCX Aerostructures, LLC (7) (8)
|
|
Equity/Other
|
|
Industrials
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
PCX Aerostructures, LLC (7) (8)
|
|
Equity/Other
|
|
Industrials
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
PCX Aerostructures, LLC (7) (8)
|
|
Equity/Other
|
|
Industrials
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
PennantPark Credit Opportunities Fund II, LP
|
|
Equity/Other
|
|
Diversified Investment Vehicles
|
|
647
|
|
|
8,705
|
|
|
304
|
|
|
—
|
|
|
—
|
|
|
(302
|
)
|
|
8,707
|
|
Portfolio Company (1)
|
|
Type of Asset
|
|
Industry
|
|
Amount of dividends and interest included in income
|
|
Beginning Fair Value at December 31, 2018
|
|
Gross additions*
|
|
Gross reductions**
|
|
Realized Gain/(Loss)
|
|
Change in Unrealized Gain (Loss) (4)
|
|
Fair Value at December 31, 2019
|
||||||||||||||
Tap Rock Resources, LLC (7) (8)
|
|
Equity/Other
|
|
Energy
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,672
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
207
|
|
|
$
|
20,879
|
|
Tax Defense Network, LLC - L+6.00% (10.00%), 4/30/2020 (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
(4
|
)
|
|
1,195
|
|
|
—
|
|
|
(111
|
)
|
|
—
|
|
|
178
|
|
|
1,262
|
|
|||||||
Tax Defense Network, LLC - L+6.00% (10.00%), 4/30/2020 (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
(30
|
)
|
|
6,732
|
|
|
—
|
|
|
(631
|
)
|
|
3
|
|
|
1,004
|
|
|
7,108
|
|
|||||||
Tax Defense Network, LLC - L+10.00% (10.00%), 4/30/2020 (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
2,357
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,357
|
|
|||||||
Tax Defense Network, LLC (7) (8)
|
|
Equity/Other
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Tax Defense Network, LLC (7) (8)
|
|
Equity/Other
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Team Waste, LLC (7) (8)
|
|
Equity/Other
|
|
Industrials
|
|
—
|
|
|
2,235
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,235
|
|
|||||||
Tennenbaum Waterman Fund, LP
|
|
Equity/Other
|
|
Diversified Investment Vehicles
|
|
1,381
|
|
|
10,137
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(296
|
)
|
|
9,841
|
|
|||||||
THL Credit Greenway Fund II, LLC
|
|
Equity/Other
|
|
Diversified Investment Vehicles
|
|
1,636
|
|
|
7,435
|
|
|
—
|
|
|
(3,290
|
)
|
|
—
|
|
|
(1,591
|
)
|
|
2,554
|
|
|||||||
TwentyEighty, Inc. (5) (7) (8)
|
|
Equity/Other
|
|
Business Services
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,465
|
)
|
|
6,465
|
|
|
—
|
|
|
—
|
|
|||||||
TwentyEighty, Inc. - L+8.00% (10.33%), 3/31/2020 (5) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Business Services
|
|
40
|
|
|
300
|
|
|
13
|
|
|
(304
|
)
|
|
17
|
|
|
(26
|
)
|
|
—
|
|
|||||||
TwentyEighty, Inc. - 8.00%, 3/31/2020 (5) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Business Services
|
|
1,013
|
|
|
6,422
|
|
|
813
|
|
|
(6,754
|
)
|
|
481
|
|
|
(962
|
)
|
|
—
|
|
|||||||
TwentyEighty, Inc. - 9.00%, 3/31/2020 (5) (6) (7)
|
|
Senior Secured First Lien Debt
|
|
Business Services
|
|
992
|
|
|
6,158
|
|
|
981
|
|
|
(6,709
|
)
|
|
438
|
|
|
(868
|
)
|
|
—
|
|
|||||||
Vantage Mobility International, LLC - L+6.00% (7.80%), 6/30/2023 (6) (7)
|
|
Senior Secured Second Lien Debt
|
|
Transportation
|
|
—
|
|
|
—
|
|
|
2,742
|
|
|
—
|
|
|
—
|
|
|
141
|
|
|
2,883
|
|
|||||||
Vantage Mobility International, LLC - L+6.00% (8.44%), 6/30/2023 (5)
|
|
Senior Secured First Lien Debt
|
|
Transportation
|
|
—
|
|
|
—
|
|
|
2,351
|
|
|
(2,351
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Vantage Mobility International, LLC - L+7.75% (10.26%), 9/1/2021 (5) (7)
|
|
Subordinated Debt
|
|
Transportation
|
|
480
|
|
|
—
|
|
|
5,842
|
|
|
(5,490
|
)
|
|
(509
|
)
|
|
157
|
|
|
—
|
|
|||||||
Vantage Mobility International, LLC (7) (8)
|
|
Equity/Other
|
|
Transportation
|
|
—
|
|
|
—
|
|
|
3,140
|
|
|
—
|
|
|
—
|
|
|
(2,198
|
)
|
|
942
|
|
|||||||
Vantage Mobility International, LLC (7) (8)
|
|
Equity/Other
|
|
Transportation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Vantage Mobility International, LLC (7) (8)
|
|
Equity/Other
|
|
Transportation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Whitehorse, Ltd. 2014-1A SUB - 0.00%, 5/1/2026 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
18
|
|
|
3,975
|
|
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|
(1,794
|
)
|
|
286
|
|
|||||||
Whitehorse, Ltd. 2014-1A Side Letter - 10.44%, 5/1/2026 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
8
|
|
|
297
|
|
|
—
|
|
|
(342
|
)
|
|
—
|
|
|
80
|
|
|
35
|
|
|||||||
Whitehorse, Ltd. 2014-1A E - L+4.55% (6.46%), 5/1/2026 (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
297
|
|
|
—
|
|
|
7,314
|
|
|
—
|
|
|
—
|
|
|
(260
|
)
|
|
7,054
|
|
|||||||
World Business Lenders, LLC (7) (8)
|
|
Equity/Other
|
|
Financials
|
|
—
|
|
|
3,759
|
|
|
—
|
|
|
(3,755
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|||||||
Total Affiliate Investments
|
|
|
|
|
|
$
|
17,282
|
|
|
$
|
176,560
|
|
|
$
|
58,387
|
|
|
$
|
(91,732
|
)
|
|
$
|
(21,341
|
)
|
|
$
|
7,652
|
|
|
$
|
129,526
|
|
Total Control & Affiliate Investments
|
|
|
|
|
|
$
|
54,954
|
|
|
$
|
484,240
|
|
|
$
|
323,141
|
|
|
$
|
(284,547
|
)
|
|
$
|
(62,708
|
)
|
|
$
|
75,917
|
|
|
$
|
536,043
|
|
(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, 2019.
|
(3)
|
For the year ended December 31, 2019, 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 2019 Form 10-K.
|
(4)
|
Gross of deferred taxes in the amount of $1.0 million.
|
(5)
|
Investment no longer held as of December 31, 2019.
|
(6)
|
Investment paid or has the option to pay all or a portion of interest and dividends via payment-in-kind.
|
(7)
|
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).
|
(8)
|
Investment is non-income producing at December 31, 2019.
|
Portfolio Company (1)
|
|
Type of Asset
|
|
Industry
|
|
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 December 31, 2018
|
||||||||||||||
Control Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capstone Nutrition Common Stock (fka Integrity Nutraceuticals) (4) (5) (10)
|
|
Equity/Other
|
|
Consumer
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Capstone Nutrition (fka Integrity Nutraceuticals) - L+12.50% (15.03%), 9/25/2020 (4) (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
2,829
|
|
|
—
|
|
|
—
|
|
|
390
|
|
|
3,219
|
|
|||||||
Capstone Nutrition (fka Integrity Nutraceuticals) - L+12.50% (15.03%), 9/25/2020 (4) (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
—
|
|
|
4,096
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(637
|
)
|
|
3,459
|
|
|||||||
Capstone Nutrition (fka Integrity Nutraceuticals) - L+12.50% (15.03%), 9/25/2020 (4) (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
—
|
|
|
9,467
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,775
|
)
|
|
7,692
|
|
|||||||
Capstone Nutrition Class B and C Common Stock (fka Integrity Nutraceuticals) (4) (5) (10)
|
|
Equity/Other
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
CRD Holdings, LLC - 9.00% (5)
|
|
Equity/Other
|
|
Energy
|
|
4,132
|
|
|
26,984
|
|
|
11,899
|
|
|
(9,680
|
)
|
|
—
|
|
|
(230
|
)
|
|
28,973
|
|
|||||||
CRS-SPV, Inc. (5) (10)
|
|
Equity/Other
|
|
Industrials
|
|
—
|
|
|
—
|
|
|
2,219
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2,221
|
|
|||||||
Kahala Ireland OpCo Designated Activity Company - L+8.00% (13.00%), 12/23/2028 (3) (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Transportation
|
|
17,447
|
|
|
141,549
|
|
|
—
|
|
|
(30,000
|
)
|
|
—
|
|
|
—
|
|
|
111,549
|
|
Portfolio Company (1)
|
|
Type of Asset
|
|
Industry
|
|
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 December 31, 2018
|
||||||||||||||
Kahala Ireland OpCo Designated Activity Company (3) (5) (10)
|
|
Equity/Other
|
|
Transportation
|
|
$
|
—
|
|
|
$
|
11,709
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,620
|
|
|
$
|
20,329
|
|
Kahala Ireland OpCo Designated Activity Company (3) (5) (10)
|
|
Equity/Other
|
|
Transportation
|
|
—
|
|
|
3,250
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
20
|
|
|
3,250
|
|
|||||||
Kahala US OpCo, LLC - 13.00% (3) (5) (10)
|
|
Equity/Other
|
|
Transportation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
NexSteppe, Inc. (5) (10)
|
|
Equity/Other
|
|
Chemicals
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
NexSteppe, Inc. - 12.00%, 3/31/2019 (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Chemicals
|
|
—
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|||||||
NexSteppe, Inc. - 12.00%, 3/31/2019 (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Chemicals
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
NMFC Senior Loan Program I, LLC
|
|
Equity/Other
|
|
Diversified Investment Vehicles
|
|
6,051
|
|
|
50,805
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(232
|
)
|
|
50,573
|
|
|||||||
Park Ave RE Holdings, LLC - 13.00%, 12/31/2021 (2) (5) (8) (9)
|
|
Subordinated Debt
|
|
Financials
|
|
4,902
|
|
|
37,192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,192
|
|
|||||||
Park Ave RE Holdings, LLC (2) (5) (10)
|
|
Equity/Other
|
|
Financials
|
|
—
|
|
|
12,678
|
|
|
102
|
|
|
—
|
|
|
—
|
|
|
2,798
|
|
|
15,578
|
|
|||||||
Park Ave RE Holdings, LLC - 8.00% (2) (5) (10)
|
|
Equity/Other
|
|
Financials
|
|
—
|
|
|
23,645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,645
|
|
|||||||
South Grand MM CLO I, LLC (7)
|
|
Equity/Other
|
|
Diversified Investment Vehicles
|
|
100
|
|
|
28,904
|
|
|
—
|
|
|
(29,555
|
)
|
|
460
|
|
|
191
|
|
|
—
|
|
|||||||
Total Control Investments
|
|
|
|
|
|
$
|
32,632
|
|
|
$
|
350,279
|
|
|
$
|
17,299
|
|
|
$
|
(69,255
|
)
|
|
$
|
460
|
|
|
$
|
8,897
|
|
|
$
|
307,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Answers Corp. (5)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
$
|
—
|
|
|
$
|
14,231
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(12,322
|
)
|
|
$
|
1,909
|
|
Answers Corp. (5) (7)
|
|
Senior Secured First Lien Debt
|
|
Media/Entertainment
|
|
82
|
|
|
2,916
|
|
|
7
|
|
|
(3,007
|
)
|
|
55
|
|
|
29
|
|
|
—
|
|
|||||||
Answers Corp. - L+7.90% (9.00%), 9/15/2021 (5) (7)
|
|
Senior Secured Second Lien Debt
|
|
Media/Entertainment
|
|
557
|
|
|
4,371
|
|
|
153
|
|
|
(4,675
|
)
|
|
435
|
|
|
(284
|
)
|
|
—
|
|
|||||||
B&M CLO, Ltd. 2014-1A SUB - 0.00%, 4/16/2026 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
767
|
|
|
12,804
|
|
|
—
|
|
|
(3,003
|
)
|
|
(1,857
|
)
|
|
(1,915
|
)
|
|
6,029
|
|
|||||||
Basho Technologies, Inc. (7)
|
|
Senior Secured First Lien Debt
|
|
Software
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,238
|
)
|
|
(5,247
|
)
|
|
6,485
|
|
|
—
|
|
|||||||
Basho Technologies, Inc. (7)
|
|
Senior Secured First Lien Debt
|
|
Software
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,550
|
)
|
|
2,550
|
|
|
—
|
|
|||||||
Basho Technologies, Inc. (7)
|
|
Equity/Other
|
|
Software
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,000
|
)
|
|
2,000
|
|
|
—
|
|
|||||||
CVP Cascade CLO, Ltd. 2013-CLO1 SUB - 0.00%, 1/16/2026 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
633
|
|
|
4,121
|
|
|
—
|
|
|
(1,143
|
)
|
|
(5,500
|
)
|
|
3,688
|
|
|
1,166
|
|
|||||||
CVP Cascade CLO, Ltd. 2013-CLO1 Side Letter (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
15
|
|
|
602
|
|
|
—
|
|
|
(629
|
)
|
|
(343
|
)
|
|
438
|
|
|
68
|
|
|||||||
CVP Cascade CLO, Ltd. 2014-2A Side Letter (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
19
|
|
|
1,101
|
|
|
—
|
|
|
(701
|
)
|
|
—
|
|
|
(126
|
)
|
|
274
|
|
|||||||
Danish CRJ, Ltd. (5) (10)
|
|
Equity/Other
|
|
Transportation
|
|
—
|
|
|
605
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(604
|
)
|
|
—
|
|
|||||||
Figueora - Class F Notes - 12.79%, 1/15/2027 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
465
|
|
|
—
|
|
|
8,000
|
|
|
—
|
|
|
—
|
|
|
(492
|
)
|
|
7,508
|
|
|||||||
Figueroa CLO, Ltd. 2014-1A Side Letter (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
44
|
|
|
895
|
|
|
—
|
|
|
(617
|
)
|
|
—
|
|
|
205
|
|
|
483
|
|
Portfolio Company (1)
|
|
Type of Asset
|
|
Industry
|
|
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 December 31, 2018
|
||||||||||||||
Figueroa CLO, Ltd. 2014-1A SUB - 0.00%, 1/15/2027 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
$
|
882
|
|
|
$
|
12,508
|
|
|
$
|
—
|
|
|
$
|
(852
|
)
|
|
$
|
(4,000
|
)
|
|
$
|
(188
|
)
|
|
$
|
7,468
|
|
Frank Entertainment Group, LLC - 6.00%, 6/30/2019 (5)
|
|
Senior Secured First Lien Debt
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
1,836
|
|
|
—
|
|
|
—
|
|
|
(395
|
)
|
|
1,441
|
|
|||||||
Frank Entertainment Group, LLC - 10.00%, 6/30/2019 (5)
|
|
Senior Secured Second Lien Debt
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Frank Entertainment Group, LLC (5) (10)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Frank Entertainment Group, LLC (5) (10)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Frank Entertainment Group, LLC (5) (10)
|
|
Equity/Other
|
|
Media/Entertainment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Frontstreet Facility Solutions, Inc. (5) (10)
|
|
Equity/Other
|
|
Business Services
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Frontstreet Facility Solutions, Inc. - 13.00%, 3/1/2021 (5)
|
|
Subordinated Debt
|
|
Business Services
|
|
126
|
|
|
—
|
|
|
227
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
189
|
|
|||||||
MidOcean Credit CLO 2013-2A INC - 12.07%, 1/29/2025 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
2,130
|
|
|
20,651
|
|
|
—
|
|
|
(431
|
)
|
|
—
|
|
|
(3,686
|
)
|
|
16,534
|
|
|||||||
MidOcean Credit CLO 2014-3A SUB - 14.97%, 7/21/2026 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
2,398
|
|
|
17,508
|
|
|
1,738
|
|
|
(1,847
|
)
|
|
(3,300
|
)
|
|
552
|
|
|
14,651
|
|
|||||||
MidOcean Credit CLO 2015-4A INC - 0.00%, 4/15/2027 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
1,128
|
|
|
12,212
|
|
|
—
|
|
|
(1,184
|
)
|
|
—
|
|
|
(2,433
|
)
|
|
8,595
|
|
|||||||
NewStar Arlington Senior Loan Program, LLC 14-1A FR - 13.77%, 4/25/2031 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
455
|
|
|
—
|
|
|
4,532
|
|
|
—
|
|
|
—
|
|
|
(107
|
)
|
|
4,425
|
|
|||||||
NewStar Arlington Senior Loan Program, LLC 14-1A SUB - 17.51%, 7/25/2025 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
3,973
|
|
|
25,439
|
|
|
—
|
|
|
(2,050
|
)
|
|
—
|
|
|
1,399
|
|
|
24,788
|
|
|||||||
Newstar Fairfield Fund CLO, Ltd. 2015-1RA F - 10.26%, 1/20/2027 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
1,212
|
|
|
8,660
|
|
|
161
|
|
|
—
|
|
|
—
|
|
|
(241
|
)
|
|
8,580
|
|
|||||||
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB - 12.31%, 1/19/2027 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
517
|
|
|
13,089
|
|
|
—
|
|
|
(2,141
|
)
|
|
(7,000
|
)
|
|
7,947
|
|
|
11,895
|
|
|||||||
OFSI Fund, Ltd. 2014-6A Side Letter (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
(25
|
)
|
|
680
|
|
|
—
|
|
|
(485
|
)
|
|
—
|
|
|
4
|
|
|
199
|
|
|||||||
OFSI Fund, Ltd. 2014-6A SUB - 0.00%, 3/20/2025 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
183
|
|
|
10,162
|
|
|
—
|
|
|
(3,003
|
)
|
|
(1,000
|
)
|
|
(3,151
|
)
|
|
3,008
|
|
|||||||
PennantPark Credit Opportunities Fund II, LP
|
|
Equity/Other
|
|
Diversified Investment Vehicles
|
|
1,264
|
|
|
10,136
|
|
|
—
|
|
|
(1,518
|
)
|
|
—
|
|
|
87
|
|
|
8,705
|
|
|||||||
Silver Spring CLO, Ltd. - 4.84%, 10/16/2026 (5) (7)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
370
|
|
|
10,363
|
|
|
—
|
|
|
(8,241
|
)
|
|
(6,882
|
)
|
|
4,760
|
|
|
—
|
|
|||||||
Tax Defense Network, LLC - L+6.00% (10.00%), 4/30/2020 (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Consumer
|
|
157
|
|
|
7,477
|
|
|
—
|
|
|
(314
|
)
|
|
—
|
|
|
764
|
|
|
7,927
|
|
|||||||
Tax Defense Network, LLC (5) (10)
|
|
Equity/Other
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Tax Defense Network, LLC (5) (10)
|
|
Equity/Other
|
|
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Team Waste, LLC (5) (10)
|
|
Equity/Other
|
|
Industrials
|
|
—
|
|
|
—
|
|
|
2,234
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2,235
|
|
|||||||
Tennenbaum Waterman Fund, LP (5)
|
|
Equity/Other
|
|
Diversified Investment Vehicles
|
|
1,254
|
|
|
10,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(290
|
)
|
|
10,137
|
|
Portfolio Company (1)
|
|
Type of Asset
|
|
Industry
|
|
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 December 31, 2018
|
||||||||||||||
THL Credit Greenway Fund II, LLC
|
|
Equity/Other
|
|
Diversified Investment Vehicles
|
|
$
|
1,048
|
|
|
$
|
11,373
|
|
|
$
|
856
|
|
|
$
|
(4,659
|
)
|
|
$
|
—
|
|
|
$
|
(135
|
)
|
|
$
|
7,435
|
|
TwentyEighty, Inc. (5)
|
|
Equity/Other
|
|
Business Services
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
TwentyEighty, Inc. - L+8.00% (10.80%), 3/31/2020 (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Business Services
|
|
307
|
|
|
2,853
|
|
|
131
|
|
|
(2,620
|
)
|
|
337
|
|
|
(401
|
)
|
|
300
|
|
|||||||
TwentyEighty, Inc. - 8.00%, 3/31/2020 (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Business Services
|
|
1,183
|
|
|
4,719
|
|
|
925
|
|
|
—
|
|
|
—
|
|
|
778
|
|
|
6,422
|
|
|||||||
TwentyEighty, Inc. - 8.75%, 3/31/2020 (5) (8)
|
|
Senior Secured First Lien Debt
|
|
Business Services
|
|
1,137
|
|
|
3,739
|
|
|
1,125
|
|
|
—
|
|
|
—
|
|
|
1,294
|
|
|
6,158
|
|
|||||||
Whitehorse, Ltd. 2014-1A Side Letter (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
39
|
|
|
639
|
|
|
—
|
|
|
(406
|
)
|
|
—
|
|
|
64
|
|
|
297
|
|
|||||||
Whitehorse, Ltd. 2014-1A SUB - 0.00%, 5/1/2026 (5)
|
|
Collateralized Securities
|
|
Diversified Investment Vehicles
|
|
(30
|
)
|
|
8,761
|
|
|
—
|
|
|
(3,087
|
)
|
|
(1,000
|
)
|
|
(699
|
)
|
|
3,975
|
|
|||||||
World Business Lenders, LLC (5) (10)
|
|
Equity/Other
|
|
Financials
|
|
—
|
|
|
3,759
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,759
|
|
|||||||
Total Affiliate Investments
|
|
|
|
|
|
$
|
22,290
|
|
|
$
|
236,801
|
|
|
$
|
21,925
|
|
|
$
|
(47,852
|
)
|
|
$
|
(39,852
|
)
|
|
$
|
5,538
|
|
|
$
|
176,560
|
|
Total Control & Affiliate Investments
|
|
|
|
|
|
$
|
54,922
|
|
|
$
|
587,080
|
|
|
$
|
39,224
|
|
|
$
|
(117,107
|
)
|
|
$
|
(39,392
|
)
|
|
$
|
14,435
|
|
|
$
|
484,240
|
|
(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, 2018.
|
(3)
|
For the year ended December 31, 2018, 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 2018 Form 10-K.
|
(4)
|
This investment was not deemed significant under Regulation S-X as of December 31, 2018.
|
(5)
|
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).
|
(6)
|
Gross of deferred taxes in the amount of $0.5 million.
|
(7)
|
Investment no longer held as of December 31, 2018.
|
(8)
|
Investment paid or has the option to pay all or a portion of interest and dividends via payment-in-kind.
|
(9)
|
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.
|
(10)
|
Investment is non-income producing at December 31, 2018.
|
Title of Class
|
|
Amount Authorized
|
|
Amount Outstanding
|
Common Stock, par value $0.001 per share
|
|
450,000,000
|
|
190,207,517
|
•
|
Amend the charter (other than as described above); or
|
•
|
Remove the Adviser and elect a new investment adviser.
|
•
|
Amend the charter in a manner that adversely affects the interests of our stockholders;
|
•
|
Except as permitted by our charter, permit our Adviser to voluntarily withdraw as our investment adviser unless such withdrawal would not affect our tax status and would not materially adversely affect our stockholders;
|
•
|
Appoint a new investment adviser;
|
•
|
Unless otherwise permitted by law, sell all or substantially all of our assets other than in the ordinary course of business; or
|
•
|
Unless otherwise permitted by law, approve a merger or similar reorganization of our Company.
|
•
|
one-tenth or more but less than one-third;
|
•
|
one-third or more but less than a majority; or
|
•
|
a majority or more of all voting power.
|
•
|
any person who beneficially owns 10% or more of the voting power of the corporation’s outstanding voting stock; or
|
•
|
an affiliate or associate of the corporation who, at any time within the two-year period immediately prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding stock of the corporation.
|
•
|
80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and
|
•
|
two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.
|
•
|
provide that a special meeting of stockholders will be called only at the request of stockholders entitled to cast at least a majority of the votes entitled to be cast at the meeting;
|
•
|
reserve for itself the exclusive power to fix the number of directors;
|
•
|
provide that a director may be removed only by the vote of stockholders entitled to cast two-thirds of all the votes entitled to be cast generally in the election of directors; and
|
•
|
provide that all vacancies on the Board of Directors may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and that any director elected to fill a vacancy will serve for the remainder of the full term of the directorship and until his or her successor is elected and qualifies.
|
Name
|
|
|
Domicile
|
|
BDCA Funding I, LLC
|
|
|
Delaware
|
|
54th Street Equity Holding, Inc.
|
|
|
Delaware
|
|
Park Ave RE, Inc.
|
|
|
Delaware
|
|
Kahala Aviation Holdings, LLC
|
|
|
Delaware
|
|
Kahala Aviation US, Inc.
|
|
|
Delaware
|
|
Kahala LuxCo S.A.R.L.
|
|
|
Luxembourg
|
|
BDCA-CB Funding, LLC
|
|
|
Delaware
|
|
BDCA Helvetica Funding, Ltd.
|
|
|
Cayman Islands
|
|
1.
|
I have reviewed this Annual Report on Form 10-K for the annual period ended December 31, 2019 of Business Development Corporation of America;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
March 20, 2020
|
/s/ Richard J. Byrne
|
|
|
Richard J. Byrne
|
|
|
Chief Executive Officer, President, and
Chairman of the Board of Directors
(Principal Executive Officer) |
1.
|
I have reviewed this Annual Report on Form 10-K for the annual period ended December 31, 2019 of Business Development Corporation of America;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
March 20, 2020
|
/s/ Nina Kang Baryski
|
|
|
Nina Kang Baryski
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|
/s/ Richard J. Byrne
|
Richard J. Byrne
Chief Executive Officer, President, and Chairman of the Board of Directors
(Principal Executive Officer)
|
|
/s/ Nina Kang Baryski
|
Nina Kang Baryski
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|
|
Page
|
Financial Statements
|
|
Independent Auditors' Report
|
1 - 2
|
|
|
Consolidated Balance Sheet as of December 31, 2019
|
3 - 4
|
|
|
Consolidated Statement of Income for the year ended December 31, 2019
|
5
|
|
|
Consolidated Statement of Changes in Members' Equity for the year ended December 31, 2019
|
6
|
|
|
Consolidated Statement of Cash Flows for the year ended December 31, 2019
|
7 - 8
|
|
|
Notes to Consolidated Financial Statements
|
9 - 36
|
|
Note
|
|
2019
US$
|
2018
US$
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents (including US$19 million as of December 31, 2019 representing
share in VIE entities) |
3
|
|
32,518,559
|
20,113,924
|
Net trade receivables
|
|
|
1,986,149
|
2,056,254
|
Other receivables
|
|
|
154,949
|
254,634
|
Due from related parties
|
19
|
|
446,971
|
320,238
|
Prepayments
|
|
|
111,250
|
111,250
|
Assets held for sale
|
8
|
|
52,069,591
|
19,554,330
|
|
|
|
87,287,469
|
42,410,630
|
Non‑current assets
|
|
|
|
|
Property and equipment, net (including US$Nil million as of December 31, 2019 and
US$152 million as of December 31, 2018 representing collateral of VIE entities)
|
6
|
|
126,244,516
|
217,146,197
|
Intangible assets (including US$Nil as of December 31, 2019 and
US$8.7 million as of December 31, 2018 representing collateral of VIE entities)
|
7
|
|
6,228,990
|
8,728,572
|
Restricted cash (including US$Nil as of December 31, 2019 and
US$56 million as of December 31, 2018 representing collateral of VIE entities)
|
4
|
|
-
|
56,660,051
|
Lessor contributions
|
5
|
|
-
|
1,245,466
|
Deferred tax assets
|
18
|
|
-
|
893,613
|
|
|
|
132,473,506
|
284,673,899
|
Total assets
|
|
|
219,760,975
|
327,084,529
|
Liabilities and Members' Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Other liabilities (US$8,783,072 as of December 31, 2019 (2018: US$5,913,942) is a related party liability)
|
10
|
|
10,473,312
|
8,641,258
|
Accrued interest
|
9
|
|
21,754,926
|
22,030,925
|
Due to related parties
|
19
|
|
57,093
|
67,798
|
Deferred revenue
|
|
|
1,351,616
|
1,187,653
|
Liabilities directly associated with assets held for sale
|
8
|
|
8,774,233
|
3,290,000
|
Aircraft maintenance reserve
|
11
|
|
8,210,523
|
19,913,685
|
Lease security deposits
|
|
|
440,000
|
-
|
Current maturing long-term debt (debt financing of VIE’s as of December 31, 2019 and 2018 that do not have recourse of the general credit of the Company)
|
9
|
|
-
|
51,088,700
|
|
|
|
51,061,703
|
106,220,019
|
Non‑current liabilities
|
|
|
|
|
Lease security deposits
|
|
|
2,088,000
|
8,763,000
|
Aircraft maintenance reserve
|
11
|
|
204,649
|
5,616,958
|
Loans from BDCA – related party
|
9,18
|
|
83,223,818
|
89,223,818
|
Loans from KLS – related party
|
9,18
|
|
4,556,272
|
4,556,272
|
Intangible liabilities (including US$Nil million as of December 31, 2019 and
US$23.2 million as of December 31, 2018 representing collateral of VIE entities)
|
7
|
|
8,950,434
|
23,231,453
|
Long-term debt (including debt financing of VIE’s of US$Nil million as of December 31, 2019
and US$51 million as of December 31, 2018 that do not have recourse of the general credit
of the Company)
|
9
|
|
-
|
58,132,126
|
|
Note
|
|
2019
US$
|
2018
US$
|
Non‑current liabilities (continued)
|
|
|
|
|
Other liabilities – related party
|
10
|
|
11,905,809
|
8,321,370
|
Deferred tax liabilities
|
18
|
|
17,967,596
|
7,953,850
|
|
|
|
128,896,578
|
205,798,847
|
Total liabilities
|
|
|
179,958,281
|
312,018,866
|
|
|
|
|
|
Commitments and contingencies
|
20
|
|
-
|
-
|
|
|
|
||
Members' equity
|
|
|
|
|
Share capital
|
|
|
|
|
Common shares Eur 1 par value
|
|
|
|
|
Authorised: 1,000,000 shares
|
|
|
|
|
Issued and outstanding: 100 shares
|
17
|
|
137
|
137
|
Retained earnings
|
|
|
39,802,557
|
15,065,526
|
Total members' equity
|
|
|
39,802,694
|
15,065,663
|
Total liabilities and members' equity
|
|
|
219,760,975
|
327,084,529
|
|
Note
|
2019
US$
|
2018
US$
|
Revenues
|
|
|
|
Lease rental income
|
16
|
44,560,333
|
63,846,081
|
Maintenance reserve income
|
11, 13
|
28,596,569
|
55,014,619
|
Gain/(loss) on sale of aircraft
|
6
|
16,831,071
|
(3,954,908)
|
Other income
|
|
521,473
|
430,243
|
Total revenues
|
|
90,509,446
|
115,336,035
|
Expenses
|
|
|
|
Interest expense
|
|
|
|
Loans from third parties
|
9
|
3,200,811
|
6,340,446
|
Loans from BDCA – related party
|
9, 19
|
11,696,930
|
17,458,097
|
Loans from KLS – related party
|
9, 19
|
330,688
|
290,060
|
Depreciation and amortization
|
6 , 7
|
18,187,266
|
56,214,630
|
Selling, general and administrative expenses (including US$13.8 million as of December 31, 2019
and US$10.7 million as of December 31, 2018 which is related party)
|
14, 19
|
19,226,497
|
15,646,202
|
Total expenses
|
|
52,642,192
|
95,949,435
|
Net profit before income tax expense
|
|
37,867,254
|
19,386,600
|
Income tax expense
|
18
|
(13,130,223)
|
(5,862,516)
|
Net profit after taxes and total comprehensive income
|
|
24,737,031
|
13,524,084
|
|
Share Capital
Number of shares
|
Share Capital
Par value
US$
|
Retained
earnings
US$
|
Total
US$
|
|
|
|
|
|
2018
|
|
|
|
|
Balance at January 1, 2018
|
100
|
137
|
1,541,442
|
1,541,579
|
Net profit and total comprehensive income for the year
|
-
|
-
|
13,524,084
|
13,524,084
|
Balance at December 31, 2018
|
100
|
137
|
15,065,526
|
15,065,663
|
|
|
|
|
|
2019
|
|
|
|
|
Balance at January 1, 2019
|
100
|
137
|
15,065,526
|
15,065,663
|
Net profit and total comprehensive income for the year
|
-
|
-
|
24,737,031
|
24,737,031
|
Balance at December 31, 2019
|
100
|
137
|
39,802,557
|
39,802,694
|
|
|
||
|
|
2019
US$
|
2018
US$
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
Net profit for the year
|
|
24,737,031
|
13,524,084
|
Adjustments to reconcile net profit to net cash provided by operating activities:
|
|
|
|
Depreciation and amortization
|
|
18,187,266
|
56,214,630
|
Loss on transfer to assets held for sale
|
|
233,477
|
-
|
Amortization of deferred financing costs and discounts
|
|
148,142
|
125,731
|
Net (gain)/loss on sale of aircraft and assets held for sale
|
|
(16,831,071)
|
3,954,908
|
Deferred tax expense
|
|
10,907,360
|
4,230,031
|
Changes in operating assets and liabilities:
|
|
|
|
Lessor contributions
|
|
1,245,466
|
1,671,411
|
Other receivables
|
|
169,790
|
197,965
|
Due from related parties
|
|
(126,733)
|
(103,432)
|
Other liabilities
|
|
5,416,493
|
7,468,178
|
Liabilities directly associated with assets held for sale
|
|
5,484,233
|
3,290,000
|
Accrued interest
|
|
(275,999)
|
310,644
|
Due to related parties
|
|
(10,705)
|
(22,197)
|
Deferred revenue
|
|
163,963
|
(1,049,442)
|
Net cash provided by operating activities
|
|
49,448,713
|
89,812,511
|
Cash flows from investing activities
|
|
|
|
Payments for purchase of aircraft
|
|
-
|
(536,652)
|
Proceeds from disposal of aircraft
|
|
45,015,311
|
46,068,187
|
Net cash provided by investing activities
|
|
45,015,311
|
45,531,535
|
Cash flows from financing activities
|
|
|
|
Decrease/(increase) in restricted cash
|
|
56,660,051
|
(20,196,653)
|
Deferred financing costs incurred
|
|
524,689
|
61,727
|
Receipts of maintenance reserve
|
|
23,511,346
|
24,928,293
|
Repayments of maintenance reserve
|
|
(40,626,818)
|
(67,694,063)
|
Payments of lease security deposits
|
|
(6,235,000)
|
(4,256,000)
|
Repayment of BDCA loans – related party
|
|
(44,000,000)
|
(30,000,000)
|
Receipts from BDCA loans – related party
|
|
38,000,000
|
-
|
Repayment of third party debt financing
|
|
(109,893,657)
|
(49,722,093)
|
|
|
2019
US$ |
2018
US$ |
Net cash used in financing activities
|
|
(82,059,389)
|
(146,878,789)
|
Increase/(decrease) in cash and cash equivalents
|
|
12,404,635
|
(11,534,743)
|
Cash and cash equivalents at beginning of year
|
|
20,113,924
|
31,648,667
|
Cash and cash equivalents at end of year
|
|
32,518,559
|
20,113,924
|
Supplemental disclosures of non-cash investing and financing activities:
|
|
|
|
Transfer of Aircraft to Assets Held for Sale
|
|
52,069,591
|
19,554,330
|
Income taxes paid
|
|
1,073,165
|
575,387
|
Interest paid
|
|
15,356,286
|
23,590,500
|
1. Organization
|
2.
|
Summary of Significant Accounting Policies
|
|
Basis of preparation
|
|
Variable interest entities
|
|
When changes in circumstances or events occur, the Group reconsiders whether it remains the primary beneficiary of VIEs.
|
2.
|
Summary of Significant Accounting Policies (continued)
|
|
Use of estimates
|
|
Functional currency
|
|
Cash and cash equivalents
|
|
Cash and cash equivalents include cash and all highly liquid investments with initial maturities of three months or less.
|
|
Restricted cash
|
|
Restricted cash represents cash held by the Group but which is ring-fenced or used as security for specific financing arrangements, and to which the Group have restricted access.
|
|
Loans and receivables
|
2.
|
Summary of Significant Accounting Policies (continued)
|
2.
|
Summary of Significant Accounting Policies (continued)
|
2.
|
Summary of Significant Accounting Policies (continued)
|
|
Security deposits
|
|
Segment information
|
2.
|
Summary of Significant Accounting Policies (continued)
|
2.
|
Summary of Significant Accounting Policies (continued)
|
2.
|
Summary of Significant Accounting Policies (continued)
|
3.
|
Cash and cash equivalents
|
4.
|
Restricted cash
|
|
Restricted cash consists of cash balances held for specific purposes under the terms of the Group’s lease and financing agreements. As of December 31, 2019, restricted cash balance amounts to US$Nil (2018: US$56,660,051). In previous years, the Group’s restricted cash was pledged as security for the Group obligations under the A and B notes issued by Diamond Head. The use of this cash was restricted and held for payments of principal and interest of Class A and B notes. In 2019, the Group’s restricted cash pledged as security was released and terminated upon the Group’s purchase of the Class A and B notes issued by Diamond Head. Group’s restricted cash of US$Nil (2018: US$882,346) that was pledged as security for Kahala 28574 28576 obligations with PK Airfinance was fully settled in 2019.
|
5.
|
Lessor contributions
|
6.
|
Property and equipment, net
|
Flight equipment
|
2019
US$
|
2018
US$
|
Cost
|
192,376,346
|
340,400,379
|
Accumulated depreciation
|
(66,131,830)
|
(123,254,182)
|
Total property and equipment
|
126,244,516
|
217,146,197
|
7.
|
Intangible assets and liabilities
|
7.
|
Intangible assets and liabilities (continued)
|
|
Lease intangible assets
US$
|
Maintenance intangible assets
US$
|
Lease intangible liabilities
US$
|
Maintenance intangible liabilities
US$
|
Total
US$
|
Cost
|
15,290,238
|
3,264,181
|
(19,868,122)
|
(8,079,298)
|
(9,393,001)
|
Accumulated amortization
|
(10,164,012)
|
(2,161,417)
|
13,078,439
|
5,918,547
|
6,671,557
|
Net book value
|
5,126,226
|
1,102,764
|
(6,789,683)
|
(2,160,751)
|
(2,721,444)
|
|
Lease intangible assets
US$
|
Maintenance intangible assets
US$
|
Lease intangible liabilities
US$
|
Maintenance intangible liabilities
US$
|
Total
US$
|
Cost
|
17,758,755
|
3,264,181
|
(19,868,122)
|
(40,897,190)
|
(39,742,376)
|
Accumulated amortization
|
(10,700,083)
|
(1,594,281)
|
9,766,009
|
27,767,850
|
25,239,495
|
Net book value
|
7,058,672
|
1,669,900
|
(10,102,113)
|
(13,129,340)
|
(14,502,881)
|
8.
|
Assets held for sale
|
|
2019
|
2018
|
|
US$
|
US$
|
Assets held for sale:
|
|
|
Aircraft
|
98,977,981
|
37,069,642
|
Net accumulated depreciation and amortization
|
(46,908,390)
|
(17,515,312)
|
Total
|
52,069,591
|
19,554,330
|
|
|
|
Liabilities directly associated with assets held-for-sale:
|
|
|
Acceptance deposit
|
2,980,700
|
2,000,000
|
Cash security deposit
|
5,020,000
|
1,290,000
|
Maintenance reserve
|
773,533
|
-
|
Total
|
8,774,233
|
3,290,000
|
9.
|
Long-term debt
|
|
Maturity
|
Interest rate
|
|
Loan balance 2019
US$
|
Accrued interest 2019
US$
|
Loans payable to BDCA
|
|
|
|
|
|
Long-term debt
|
Dec 23, 2028
|
13.00
|
%
|
83,223,818
|
20,369,573
|
Loans payable to KLS
|
|
|
|
|
|
Long-term debt
|
Jun 27, 2021
|
13.00
|
%
|
1,306,272
|
1,385,353
|
PPN
|
Dec 23, 2043
|
-
|
|
3,250,000
|
-
|
Total loans payable to KLS
|
|
|
4,556,272
|
1,385,353
|
|
Loans payable to PK Airfinance
|
|
|
|
|
|
MSN 28574
|
Feb 20, 2020
|
4.27
|
%
|
-
|
-
|
MSN 28576
|
Mar 21, 2020
|
4.28
|
%
|
-
|
-
|
Deferred financing costs
|
|
|
-
|
-
|
|
Total loans payable to PK Airfinance
|
|
|
-
|
-
|
|
Notes in issue – Diamond Head
|
|
|
|
|
|
Class A
|
July 14, 2028
|
3.81
|
%
|
-
|
-
|
Class B
|
July 14, 2028
|
5.92
|
%
|
-
|
-
|
Deferred financing costs
|
|
|
-
|
-
|
|
Total debt in issue ‑ Diamond Head
|
|
|
-
|
-
|
|
|
|
|
87,780,090
|
21,754,926
|
9.
|
Long-term debt (continued)
|
|
Maturity
|
Interest rate
|
|
Loan balance 2018
US$
|
Accrued interest 2018
US$
|
Loans payable to BDCA
|
|
|
|
|
|
Long-term debt
|
Dec 23, 2028
|
13.00%
|
89,223,818
|
20,369,573
|
|
Loans payable to KLS
|
|
|
|
|
|
Long-term debt
|
Jun 27, 2021
|
13.00
|
%
|
1,306,272
|
1,054,665
|
PPN
|
Dec 23, 2043
|
-
|
|
3,250,000
|
-
|
Total loans payable to KLS
|
|
|
4,556,272
|
1,054,665
|
|
Loans payable to PK Airfinance
|
|
|
|
|
|
MSN 28574
|
Feb 20, 2020
|
4.27
|
%
|
3,603,954
|
-
|
MSN 28576
|
Mar 21, 2020
|
4.28
|
%
|
3,722,502
|
-
|
Deferred financing costs
|
|
|
(148,142)
|
-
|
|
Total loans payable to PK Airfinance
|
|
|
7,178,314
|
-
|
|
Notes in issue – Diamond Head
|
|
|
|
|
|
Class A
|
July 14, 2028
|
3.81
|
%
|
78,372,967
|
357,300
|
Class B
|
July 14, 2028
|
5.92
|
%
|
24,194,234
|
249,387
|
Deferred financing costs
|
|
|
(524,689)
|
-
|
|
Total debt in issue ‑ Diamond Head
|
|
|
102,042,512
|
606,687
|
|
|
|
|
203,000,916
|
22,030,925
|
|
2019
US$
|
2018
US$
|
Beginning of the year
|
203,000,916
|
282,535,550
|
Additions
|
38,000,000
|
-
|
Repayments
|
(153,220,826)
|
(79,534,634)
|
End of the year
|
87,780,090
|
203,000,916
|
9.
|
Long-term debt (continued)
|
|
Loans payable to BDCA
|
9.
|
Long-term debt (continued)
|
|
Principal
US$
|
Interest
US$
|
Total
US$
|
Year ended 31 December
|
|
|
|
2020
|
-
|
11,768,912
|
11,768,912
|
2021
|
1,306,272
|
11,684,004
|
12,990,276
|
2022
|
-
|
11,599,096
|
11,599,096
|
2023
|
-
|
11,599,096
|
11,599,096
|
Thereafter
|
86,473,818
|
57,995,482
|
144,469,300
|
Total
|
87,780,090
|
104,646,590
|
192,426,680
|
9.
|
Long-term debt (continued)
|
|
2019
US$
|
2018
US$
|
Interest expense on:
|
|
|
BDCA loans
|
11,696,930
|
17,458,097
|
KLS loans
|
330,688
|
290,060
|
PK Airfinance
|
123,032
|
413,466
|
Class A and B Notes
|
2,404,948
|
5,739,521
|
Amortization of deferred financing costs and discounts
|
148,142
|
125,731
|
Amortization of issue costs
|
524,689
|
61,728
|
|
15,228,429
|
24,088,603
|
10.
|
Other liabilities
|
|
Breakdown of other liabilities for December 31, 2019 and 2018 are as follows:
|
Current
|
2019
US$
|
2018
US$
|
Accounts payable
|
718,975
|
1,236,862
|
Accrued bonus – related party (Notes 13, 18)
|
8,783,072
|
5,913,942
|
Income tax payable
|
971,265
|
1,490,454
|
Total current
|
10,473,312
|
8,641,258
|
Non-current
|
|
|
Accrued bonus – related party (Notes 13, 18)
|
11,905,809
|
8,321,370
|
Total non-current
|
11,905,809
|
8,321,370
|
|
|
|
Total
|
22,379,121
|
16,962,628
|
|
2019
|
2018
|
|
US$
|
US$
|
At beginning of the year
|
25,530,643
|
68,296,414
|
Billed
|
23,511,347
|
24,928,293
|
Released
|
(28,596,569)
|
(55,014,619)
|
Claims
|
(11,256,716)
|
(12,679,445)
|
Transfer to assets held for sale
|
(773,533)
|
-
|
At end of the year
|
8,415,172
|
25,530,643
|
|
|
|
Current
|
8,210,523
|
19,913,685
|
Non-current
|
204,649
|
5,616,958
|
Total
|
8,415,172
|
25,530,643
|
|
Total
US$
|
Available
to the Group
US$
|
Not available to the Group
US$
|
Cash and cash equivalents
|
32,518,559
|
32,518,559
|
-
|
Property and equipment, net
|
126,244,516
|
126,244,516
|
-
|
Intangible assets
|
6,228,990
|
6,228,990
|
-
|
Assets held for sale
|
52,069,591
|
52,069,591
|
-
|
Other assets
|
3,638,848
|
3,638,848
|
-
|
|
220,700,504
|
220,700,504
|
-
|
|
Total
US$
|
Available
to the Group
US$
|
Not available to the Group
US$
|
Cash and cash equivalents
|
20,113,924
|
20,113,613
|
311
|
Restricted cash
|
56,660,051
|
882,656
|
55,777,395
|
Property and equipment, net
|
217,146,197
|
65,056,646
|
152,089,551
|
Intangible assets
|
8,728,572
|
-
|
8,728,572
|
Assets held for sale
|
19,554,330
|
-
|
19,554,330
|
Other assets
|
3,987,842
|
2,352,137
|
1,635,705
|
|
326,190,916
|
88,405,052
|
237,785,864
|
13.
|
Contractual lease receivables
|
Year ended December 31
|
2019
US$
|
2020
|
28,843,950
|
2021
|
13,724,200
|
2022
|
2,880,000
|
2023
|
2,880,000
|
2024
|
2,880,000
|
Thereafter
|
3,000,000
|
|
54,208,150
|
13.
|
Contractual lease receivables (continued)
|
14.
|
Management fees
|
15.
|
Fair value measurements
|
December 31, 2019
|
Carrying Value
US$
|
Fair Value
US$
|
Quoted Prices
(Level 1)
US$
|
Significant Other Observable Inputs
(Level 2)
US$
|
Significant Unobservable Inputs
(Level 3)
US$
|
Assets
|
|
|
|
|
|
Cash and cash equivalents
|
32,518,559
|
32,518,559
|
32,518,559
|
-
|
-
|
Other receivables
|
1,986,287
|
1,986,287
|
-
|
1,986,287
|
-
|
Due from related parties
|
446,971
|
446,971
|
-
|
446,971
|
-
|
Liabilities
|
|
|
|
|
|
Other liabilities
|
21,407,856
|
21,407,856
|
-
|
21,407,856
|
-
|
Liabilities directly associated with assets held for sale
|
8,774,233
|
8,774,233
|
-
|
8,774,233
|
-
|
Accrued interest
|
21,754,926
|
21,754,926
|
-
|
21,754,926
|
-
|
Lease security deposits
|
2,528,000
|
2,528,000
|
2,528,000
|
-
|
-
|
Due to related parties
|
57,093
|
57,093
|
-
|
57,093
|
-
|
Loans from BDCA – related party
|
83,223,818
|
83,223,818
|
-
|
83,223,818
|
-
|
Loans from KLS – related party
|
4,556,272
|
4,556,272
|
-
|
-
|
4,556,272
|
15.
|
Fair value measurements (continued)
|
December 31, 2018
|
Carrying Value US$
|
Fair Value
US$
|
Quoted prices
(Level 1)
US$
|
Significant Other Observable Inputs (level 2)
US$
|
Significant unobservable Inputs (Level 3) US$
|
Assets
|
|
|
|
|
|
Cash and cash equivalents
|
20,113,924
|
20,113,924
|
20,113,924
|
-
|
-
|
Other receivables
|
2,056,392
|
2,056,392
|
-
|
2,056,392
|
-
|
Restricted cash
|
56,660,051
|
56,660,051
|
56,660,051
|
-
|
-
|
Due from related parties
|
320,238
|
320,238
|
-
|
320,238
|
-
|
Liabilities
|
|
|
|
|
|
Other liabilities
|
15,472,174
|
15,472,174
|
-
|
15,472,174
|
-
|
Liabilities directly associated with assets held for sale
|
3,290,000
|
3,290,000
|
-
|
3,290,000
|
|
Accrued interest
|
22,030,925
|
22,030,925
|
-
|
22,030,925
|
-
|
Lease security deposits
|
8,763,000
|
8,763,000
|
8,763,000
|
-
|
-
|
Due to related parties
|
67,798
|
67,798
|
-
|
67,798
|
-
|
Loans from BDCA – related party
|
89,223,818
|
89,223,818
|
-
|
89,223,818
|
-
|
Loans from KLS – related party
|
4,556,272
|
4,556,272
|
-
|
-
|
4,556,272
|
Long-term debt
|
109,220,826
|
103,216,069
|
-
|
103,216,069
|
-
|
|
The Group attempts to minimize currency and exchange risks by entering into lease agreements and debt agreements with US Dollar as the designated payment currency. Most of the revenue and expenses are therefore denominated in US$ thus reducing currency risk.
|
|
December 31, 2019
|
December 31, 2018
|
||||
Region
|
Net Book Value
US$
|
% of Total
|
|
Net Book
Value
US$
|
% of Total
|
|
Europe
|
46,871,530
|
37.13
|
%
|
89,152,891
|
41.06
|
%
|
South America
|
-
|
-
|
|
4,737,617
|
2.18
|
%
|
North America
|
70,663,306
|
55.97
|
%
|
95,323,529
|
43.90
|
%
|
Asia
|
8,709,680
|
6.90
|
%
|
27,932,160
|
12.86
|
%
|
|
126,244,516
|
100.00
|
%
|
217,146,197
|
100.00
|
%
|
|
December 31, 2019
|
December 31, 2018
|
||||
Region
|
Number of Customers
|
% of Total
|
|
Number of Customers
|
% of Total
|
|
Europe
|
8
|
57.14
|
%
|
9
|
50.00
|
%
|
South America
|
1
|
7.14
|
%
|
2
|
11.11
|
%
|
North America
|
2
|
14.29
|
%
|
2
|
11.11
|
%
|
Asia
|
3
|
21.43
|
%
|
5
|
27.78
|
%
|
|
14
|
100.00
|
%
|
18
|
100.00
|
%
|
|
December 31, 2019
|
December 31, 2018
|
||||
Region
|
Amount of Lease
Rental Income
US$
|
% of Total
|
|
Amount of Lease Rental Income
US$
|
% of Total
|
|
Europe
|
20,034,596
|
44.96
|
%
|
22,190,705
|
34.76
|
%
|
South America
|
1,701,913
|
3.82
|
%
|
8,992,544
|
14.08
|
%
|
North America
|
11,748,000
|
26.36
|
%
|
11,748,000
|
18.40
|
%
|
Asia
|
11,075,824
|
24.86
|
%
|
20,914,832
|
32.76
|
%
|
|
44,560,333
|
100.00
|
%
|
63,846,081
|
100.00
|
%
|
17.
|
Share capital
|
|
Number of
shares
|
Par value
2019
EUR
|
Par value
2019
EUR
|
Authorised
|
|
|
|
1,000,000 ordinary shares of EUR 1 each
|
1,000,000
|
1,000,000
|
1,000,000
|
|
|
|
|
Allotted and called up
|
|
|
|
100 ordinary shares of EUR 1 each
|
100
|
100
|
100
|
|
|
|
|
|
Number of
shares
|
Par value
2019
USD
|
Par value
2018
USD
|
Allotted and called up
|
|
|
|
100 ordinary shares of EUR 1 each
|
100
|
137
|
137
|
18.
|
Income taxes
|
18.
|
Income taxes (continued)
|
|
2019
US$
|
2018
US$
|
(b) Reconciliation of effective tax rate
|
|
|
Net profit before income tax expense
|
37,867,254
|
19,386,600
|
Effects of:
|
|
|
Income tax expense at 25 percent
|
9,466,814
|
4,846,650
|
Income taxed at different rates
|
(4,136,634)
|
(1,313,617)
|
Prior period over/under provision
|
(741,300)
|
(1,043,825)
|
Valuation allowance
|
8,541,343
|
3,373,308
|
Reported amount of income tax expense
|
13,130,223
|
5,862,516
|
|
2019
US$
|
2018
US$
|
Deferred tax assets
|
|
|
Operating loss carry-forwards
|
29,688,857
|
8,417,618
|
Property and equipment
|
128,035
|
1,409,447
|
Intercompany financing arrangements
|
1,479,340
|
953,170
|
Total deferred tax assets
|
31,296,232
|
10,780,235
|
Valuation allowance
|
(15,258,379)
|
(6,652,819)
|
Total deferred tax assets net of valuation allowance
|
16,037,853
|
4,127,416
|
|
2019
US$
|
2018
US$
|
Deferred tax liabilities
|
|
|
Property and equipment
|
(4,013,192)
|
(1,776,899)
|
Intercompany financing arrangements
|
(29,992,257)
|
(9,410,754)
|
Total deferred tax liabilities
|
(34,005,449)
|
(11,187,653)
|
|
|
|
Net deferred tax liabilities
|
(17,967,596)
|
(7,060,237)
|
|
Nature of Relationship
|
2019
US$
|
|
2018
US$
|
|
Assets
|
|
|
|
||
Due from related parties:
|
|
|
|
||
KAH
|
Ultimate parent
|
180,068
|
|
89,335
|
|
KLS
|
Immediate parent
|
261,000
|
|
225,000
|
|
KAU
|
Group company
|
5,903
|
|
5,903
|
|
Total
|
|
446,971
|
|
320,238
|
|
Liabilities
|
|
|
|
||
Due to related parties:
|
|
|
|
||
KAGL
|
Manager
|
57,093
|
|
67,798
|
|
Subtotal
|
|
57,093
|
|
67,798
|
|
Other liabilities - KAGL (Note 10)
|
Manager
|
20,688,881
|
|
14,235,312
|
|
PPN
|
Immediate parent
|
3,250,000
|
|
3,250,000
|
|
Loans payable to KLS
|
Immediate parent
|
1,306,272
|
|
1,306,272
|
|
Loans payable to BDCA
|
Ultimate shareholder
|
83,223,818
|
|
89,223,818
|
|
|
Account
|
Related Party
|
2019
US$
|
2018
US$
|
Related party transactions
|
|
|
|
|
Loan interest expense
|
Interest expense
|
BDCA
|
11,696,930
|
17,458,097
|
Management fees – fixed (Note 14)
|
Administrative expenses
|
KAGL
|
1,250,004
|
1,250,004
|
Management fees – performance-based (Note 14)
|
Administrative expenses
|
Manager
|
12,512,874
|
9,420,458
|
Directors' fees
|
Administrative expenses
|
Directors
|
120,449
|
132,065
|