UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| ☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the Quarterly Period Ended May 31, 2017
| ☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Commission File Number: 001-33376
SARATOGA INVESTMENT CORP.
(Exact name of registrant as specified in its charter)
| Maryland | 20-8700615 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
535 Madison Avenue New York, New York | 10022 | |
| (Address of principal executive office) | (Zip Code) |
(212) 906-7800
(Registrant's telephone number, including area code)
Not applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☐ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (check one):
| Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | |||
| Non-Accelerated Filer | ☒ | Smaller Reporting Company | ☐ | |||
| Emerging Growth Company | ☐ | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares of the registrant's common stock, $0.001 par value, outstanding as of July 12, 2017 was 5,967,273.
TABLE OF CONTENTS
| Page | ||||||
PART I. | FINANCIAL INFORMATION | 3 | ||||
| Item 1. | Consolidated Financial Statements | 3 | ||||
| Consolidated Statements of Assets and Liabilities as of May 31, 2017 (unaudited) and February 28, 2017 | 3 | |||||
| Consolidated Statements of Operations for the three months ended May 31, 2017 and May 31, 2016 (unaudited) | 4 | |||||
| Consolidated Schedules of Investments as of May 31, 2017 (unaudited) and February 28, 2017 | 5 | |||||
| Consolidated Statements of Changes in Net Assets for the three months ended May 31, 2017 and May 31, 2016 (unaudited) | 7 | |||||
| Consolidated Statements of Cash Flows for the three months ended May 31, 2017 and May 31, 2016 (unaudited) | 8 | |||||
| Notes to Consolidated Financial Statements as of May 31, 2017 (unaudited) | 9 | |||||
| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 35 | ||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 59 | ||||
| Item 4. | Controls and Procedures | 60 | ||||
| PART II. | OTHER INFORMATION | 61 | ||||
| Item 1. | Legal Proceedings | 61 | ||||
| Item 1A. | Risk Factors | 61 | ||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 61 | ||||
| Item 3. | Defaults Upon Senior Securities | 61 | ||||
| Item 4. | Mine Safety Disclosures | 61 | ||||
| Item 5. | Other Information | 61 | ||||
| Item 6. | Exhibits | 62 | ||||
| Signatures | 64 | |||||
2
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Saratoga Investment Corp.
Consolidated Statements of Assets and Liabilities
| As of | ||||||||
| May 31, 2017 | February 28, 2017 | |||||||
| (unaudited) | ||||||||
ASSETS | ||||||||
Investments at fair value | ||||||||
Non-control/Non-affiliate investments (amortized cost of $291,471,679 and $251,198,896, respectively) | $ | 278,767,064 | $ | 242,531,514 | ||||
Control investments (cost of $48,625,339 and $49,283,536, respectively) | 50,922,884 | 50,129,799 | ||||||
|
|
|
| |||||
Total investments at fair value (amortized cost of $340,097,018 and $300,482,432, respectively) | 329,689,948 | 292,661,313 | ||||||
Cash and cash equivalents | 1,246,815 | 9,306,543 | ||||||
Cash and cash equivalents, reserve accounts | 26,526,889 | 12,781,425 | ||||||
Interest receivable (net of reserve of $817,374 and $157,560, respectively) | 3,652,935 | 3,294,450 | ||||||
Management and incentive fee receivable | 276,484 | 171,106 | ||||||
Other assets | 278,376 | 183,346 | ||||||
Receivable from unsettled trades | 253,041 | 253,041 | ||||||
|
|
|
| |||||
Total assets | $ | 361,924,488 | $ | 318,651,224 | ||||
|
|
|
| |||||
LIABILITIES | ||||||||
Revolving credit facility | $ | 24,500,000 | $ | - | ||||
Deferred debt financing costs, revolving credit facility | (760,150 | ) | (437,183 | ) | ||||
SBA debentures payable | 134,660,000 | 112,660,000 | ||||||
Deferred debt financing costs, SBA debentures payable | (2,924,288 | ) | (2,508,280 | ) | ||||
Notes payable | 74,450,500 | 74,450,500 | ||||||
Deferred debt financing costs, notes payable | (2,578,509 | ) | (2,689,511 | ) | ||||
Base management and incentive fees payable | 3,992,960 | 5,814,692 | ||||||
Accounts payable and accrued expenses | 773,025 | 852,987 | ||||||
Interest and debt fees payable | 1,805,492 | 2,764,237 | ||||||
Directors fees payable | 51,500 | 51,500 | ||||||
Due to manager | 345,305 | 397,505 | ||||||
|
|
|
| |||||
Total liabilities | $ | 234,315,835 | $ | 191,356,447 | ||||
|
|
|
| |||||
Commitments and contingencies (See Note 7) | ||||||||
NET ASSETS | ||||||||
Common stock, par value $.001, 100,000,000 common shares authorized, 5,884,475 and 5,794,600 common shares issued and outstanding, respectively | $ | 5,884 | $ | 5,795 | ||||
Capital in excess of par value | 192,449,147 | 190,483,931 | ||||||
Distribution in excess of net investment income | (26,898,415 | ) | (27,737,348 | ) | ||||
Accumulated net realized loss from investments and derivatives | (27,540,893 | ) | (27,636,482 | ) | ||||
Accumulated net unrealized depreciation on investments and derivatives | (10,407,070 | ) | (7,821,119 | ) | ||||
|
|
|
| |||||
Total net assets | 127,608,653 | 127,294,777 | ||||||
|
|
|
| |||||
Total liabilities and net assets | $ | 361,924,488 | $ | 318,651,224 | ||||
|
|
|
| |||||
NET ASSET VALUE PER SHARE | $ | 21.69 | $ | 21.97 | ||||
|
|
|
| |||||
See accompanying notes to consolidated financial statements.
3
Saratoga Investment Corp.
Consolidated Statements of Operations
(unaudited)
| For the three months ended May 31, 2017 | For the three months ended May 31, 2016 | |||||||
INVESTMENT INCOME | ||||||||
Interest from investments | ||||||||
Non-control/Non-affiliate investments | $ | 5,920,433 | $ | 6,620,113 | ||||
Payment-in-kind interest income from Non-control/Non-affiliate investments | 223,273 | 129,090 | ||||||
Control investments | 1,335,386 | 532,126 | ||||||
Payment-in-kind interest income from Control investments | 262,109 | - | ||||||
|
|
|
| |||||
Total interest income | 7,741,201 | 7,281,329 | ||||||
Interest from cash and cash equivalents | 7,081 | 3,786 | ||||||
Management fee income | 375,681 | 373,684 | ||||||
Incentive fee income | 105,295 | - | ||||||
Other income | 478,190 | 249,596 | ||||||
|
|
|
| |||||
Total investment income | 8,707,448 | 7,908,395 | ||||||
|
|
|
| |||||
OPERATING EXPENSES | ||||||||
Interest and debt financing expenses | 2,523,606 | 2,368,056 | ||||||
Base management fees | 1,391,027 | 1,227,157 | ||||||
Professional fees | 384,331 | 359,299 | ||||||
Administrator expenses | 375,000 | 325,000 | ||||||
Incentive management fees | 176,096 | 728,280 | ||||||
Insurance | 66,165 | 70,658 | ||||||
Directors fees and expenses | 51,000 | 66,000 | ||||||
General & administrative | 197,243 | 212,209 | ||||||
Other expense | 38,531 | 13,187 | ||||||
|
|
|
| |||||
Total operating expenses | 5,202,999 | 5,369,846 | ||||||
|
|
|
| |||||
NET INVESTMENT INCOME | 3,504,449 | 2,538,549 | ||||||
|
|
|
| |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
Net realized gain from investments | 95,589 | 6,102,905 | ||||||
Net unrealized depreciation on investments | (2,585,951 | ) | (5,353,867 | ) | ||||
|
|
|
| |||||
Net gain (loss) on investments | (2,490,362 | ) | 749,038 | |||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,014,087 | $ | 3,287,587 | ||||
|
|
|
| |||||
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE | $ | 0.17 | $ | 0.57 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 5,861,654 | 5,737,496 | ||||||
See accompanying notes to consolidated financial statements.
4
Saratoga Investment Corp.
Consolidated Schedule of Investments
May 31, 2017
(unaudited)
Company | Industry | Investment Interest Rate/ | Principal/ Number of Shares | Cost | Fair Value (c) | % of Net Assets | ||||||||||||||
Non-control/Non-affiliated investments - 218.5% (b) |
| |||||||||||||||||||
Apex Holdings Software Technologies, LLC | Business Services | First Lien Term Loan (L+8.00%), 9.21% Cash, 9/21/2021 | $ | 18,000,000 | $ | 17,864,592 | $ | 18,000,000 | 14.1 | % | ||||||||||
Avionte Holdings, LLC (g) | Business Services | Common Stock | 100,000 | 100,000 | 257,000 | 0.2 | % | |||||||||||||
BMC Software, Inc. (d) | Business Services | Syndicated Loan (L+4.00%), 5.21% Cash, 9/10/2022 | $ | 4,883,493 | 4,835,787 | 4,905,468 | 3.8 | % | ||||||||||||
CLEO Communications Holding, LLC | Business Services | First Lien Term Loan (L+7.00%), 8.21% Cash/2.00% PIK, 3/31/2022 | $ | 13,000,000 | 12,872,436 | 12,870,000 | 10.1 | % | ||||||||||||
CLEO Communications Holding, LLC (j) | Business Services | Delayed Draw Term Loan (L+7.00%), 8.21% Cash/2.00% PIK, 3/31/2022 | $ | - | - | - | 0.0 | % | ||||||||||||
Courion Corporation | Business Services | Second Lien Term Loan (L+10.00%), 11.21% Cash, 6/1/2021 | $ | 15,000,000 | 14,885,014 | 14,229,000 | 11.1 | % | ||||||||||||
Emily Street Enterprises, L.L.C. | Business Services | Senior Secured Note (L+8.50%), 10.00% Cash, 1/23/2020 | $ | 3,300,000 | 3,287,284 | 3,321,450 | 2.6 | % | ||||||||||||
Emily Street Enterprises, L.L.C. (g) | Business Services | Warrant Membership Interests Expires 12/28/2022 | 49,318 | 400,000 | 426,600 | 0.3 | % | |||||||||||||
Erwin, Inc. | Business Services | Second Lien Term Loan (L+11.50%), 12.71% Cash/1.00% PIK, 8/28/2021 | $ | 13,143,616 | 13,036,964 | 13,143,616 | 10.3 | % | ||||||||||||
FranConnect LLC (d) | Business Services | First Lien Term Loan (L+7.00%), 8.50% Cash, 5/26/2022 | $ | 14,500,000 | 14,427,500 | 14,427,500 | 11.3 | % | ||||||||||||
GreyHeller LLC | Business Services | First Lien Term Loan (L+11.00%), 12.21% Cash, 11/16/2021 | $ | 7,000,000 | 6,935,808 | 7,000,000 | 5.5 | % | ||||||||||||
GreyHeller LLC (j) | Business Services | Delayed Draw Term Loan B (L+11.00%), 12.21% Cash, 11/16/2021 | $ | - | - | - | 0.0 | % | ||||||||||||
GreyHeller LLC (g) | Business Services | Common Stock | 850,000 | 850,000 | 850,000 | 0.7 | % | |||||||||||||
Help/Systems Holdings, Inc.(Help/Systems, LLC) | Business Services | First Lien Term Loan (L+5.25%), 6.46% Cash, 10/8/2021 | $ | 5,932,462 | 5,847,487 | 5,937,208 | 4.7 | % | ||||||||||||
Help/Systems Holdings, Inc.(Help/Systems, LLC) | Business Services | Second Lien Term Loan (L+9.50%), 10.71% Cash, 10/8/2022 | $ | 3,000,000 | 2,925,229 | 2,928,900 | 2.3 | % | ||||||||||||
Identity Automation Systems | Business Services | Convertible Promissory Note 13.50% (6.75% Cash/6.75% PIK), 8/18/2018 | $ | 621,695 | 621,695 | 621,695 | 0.5 | % | ||||||||||||
Identity Automation Systems (g) | Business Services | Common Stock Class A Units | 232,616 | 232,616 | 514,298 | 0.4 | % | |||||||||||||
Identity Automation Systems | Business Services | First Lien Term Loan (L+9.25%), 10.46% Cash/1.75% PIK, 12/18/2020 | $ | 10,324,839 | 10,261,369 | 10,324,839 | 8.1 | % | ||||||||||||
Knowland Technology Holdings, L.L.C. | Business Services | First Lien Term Loan (L+8.75%), 9.96% Cash, 7/20/2021 | $ | 16,888,730 | 16,833,572 | 16,888,731 | 13.2 | % | ||||||||||||
Microsystems Company | Business Services | Second Lien Term Loan (L+10.00%), 11.21% Cash, 7/1/2022 | $ | 8,000,000 | 7,929,936 | 8,000,000 | 6.3 | % | ||||||||||||
National Waste Partners (d) | Business Services | First Lien Term Loan 10.00% Cash, 2/13/2022 | $ | 9,000,000 | 8,910,000 | 8,910,000 | 7.0 | % | ||||||||||||
Vector Controls Holding Co., LLC (d) | Business Services | First Lien Term Loan 14.00% (12.00% Cash/2.00% PIK), 3/6/2018 | $ | 8,711,174 | 8,679,449 | 8,711,174 | 6.8 | % | ||||||||||||
Vector Controls Holding Co., LLC (d), (g) | Business Services | Warrants to Purchase Limited Liability Company Interests, Expires 5/31/2025 | 343 | - | 328,008 | 0.3 | % | |||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Business Services | 151,736,738 | 152,595,487 | 119.6 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Targus Holdings, Inc. (d), (g) | Consumer Products | Common Stock | 210,456 | 1,791,242 | 24,957 | 0.0 | % | |||||||||||||
Targus Holdings, Inc. (d) | Consumer Products | Second Lien Term Loan A-2 15.00% PIK, 12/31/2019 | $ | 243,206 | 243,206 | 243,206 | 0.2 | % | ||||||||||||
Targus Holdings, Inc. (d) | Consumer Products | Second Lien Term Loan B 15.00% PIK, 12/31/2019 | $ | 729,230 | 729,230 | 729,230 | 0.6 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Consumer Products | 2,763,678 | 997,393 | 0.8 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
My Alarm Center, LLC (g) | Consumer Services | Second Lien Term Loan (L+11.00%), 12.21% Cash, 7/9/2019 | $ | 10,343,750 | 10,329,743 | 2,695,581 | 2.1 | % | ||||||||||||
PrePaid Legal Services, Inc. (d) | Consumer Services | First Lien Term Loan (L+5.25%), 6.50% Cash, 7/1/2019 | $ | 2,558,573 | 2,546,279 | 2,564,458 | 2.0 | % | ||||||||||||
PrePaid Legal Services, Inc. (d) | Consumer Services | Second Lien Term Loan (L+9.00%), 10.25% Cash, 7/1/2020 | $ | 11,000,000 | 10,968,443 | 10,957,100 | 8.6 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Consumer Services | 23,844,465 | 16,217,139 | 12.7 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
C2 Educational Systems | Education | First Lien Term Loan (L+8.50%), 10.00% Cash, 5/31/2020 | $ | 16,000,000 | 15,840,181 | 15,840,000 | 12.4 | % | ||||||||||||
M/C Acquisition Corp., L.L.C. (d), (g) | Education | Class A Common Stock | 544,761 | 30,241 | - | 0.0 | % | |||||||||||||
M/C Acquisition Corp., L.L.C. (d), (g) | Education | First Lien Term Loan 1.00% Cash, 3/31/2018 | $ | 2,321,073 | 1,193,790 | 6,320 | 0.0 | % | ||||||||||||
Texas Teachers of Tomorrow, LLC (g), (h) | Education | Common Stock | 750,000 | 750,000 | 878,603 | 0.7 | % | |||||||||||||
Texas Teachers of Tomorrow, LLC | Education | Second Lien Term Loan (L+8.00%), 9.21% Cash, 6/2/2021 | $ | 10,000,000 | 9,922,434 | 10,000,000 | 7.8 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Education | 27,736,646 | 26,724,923 | 20.9 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TM Restaurant Group L.L.C. (g) | Food and Beverage | First Lien Term Loan 14.50% PIK, 7/17/2017 | $ | 9,358,694 | 9,349,470 | 8,279,637 | 6.5 | % | ||||||||||||
TM Restaurant Group L.L.C. (g), (i) | Food and Beverage | Revolver 14.50% PIK, 7/17/2017 | $ | 413,954 | 413,954 | 366,225 | 0.3 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Food and Beverage | 9,763,424 | 8,645,862 | 6.8 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Censis Technologies, Inc. | Healthcare Services | First Lien Term Loan B (L+10.00%), 11.21% Cash, 7/24/2019 | $ | 10,950,000 | 10,840,545 | 10,879,920 | 8.5 | % | ||||||||||||
Censis Technologies, Inc. (g), (h) | Healthcare Services | Limited Partner Interests | 999 | 999,000 | 907,701 | 0.7 | % | |||||||||||||
ComForCare Health Care | Healthcare Services | First Lien Term Loan (L+8.50%), 9.71% Cash, 1/31/2022 | $ | 10,500,000 | 10,400,434 | 10,500,000 | 8.2 | % | ||||||||||||
Roscoe Medical, Inc. (d), (g) | Healthcare Services | Common Stock | 5,081 | 508,077 | 585,152 | 0.5 | % | |||||||||||||
Roscoe Medical, Inc. | Healthcare Services | Second Lien Term Loan 11.25% Cash, 9/26/2019 | $ | 4,200,000 | 4,159,694 | 4,186,560 | 3.3 | % | ||||||||||||
Ohio Medical, LLC (g) | Healthcare Services | Common Stock | 5,000 | 500,000 | 218,050 | 0.2 | % | |||||||||||||
Ohio Medical, LLC | Healthcare Services | Senior Subordinated Note 12.00% Cash, 7/15/2021 | $ | 7,300,000 | 7,241,526 | 6,395,530 | 5.0 | % | ||||||||||||
Zest Holdings, LLC (d) | Healthcare Services | Syndicated Loan (L+4.25%), 5.46% Cash, 8/16/2023 | $ | 4,136,911 | 4,056,579 | 4,162,973 | 3.3 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Healthcare Services | 38,705,855 | 37,835,886 | 29.7 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
HMN Holdco, LLC | Media | First Lien Term Loan 12.00% Cash/2.00% PIK, 7/8/2021 | $ | 8,343,607 | 8,267,744 | 8,593,916 | 6.7 | % | ||||||||||||
HMN Holdco, LLC | Media | Delayed Draw First Lien Term Loan 12.00% Cash, 7/8/2021 | $ | 4,800,000 | 4,754,553 | 4,824,000 | 3.8 | % | ||||||||||||
HMN Holdco, LLC (g) | Media | Class A Series, Expires 1/16/2025 | 4,264 | 61,647 | 263,131 | 0.2 | % | |||||||||||||
HMN Holdco, LLC (g) | Media | Class A Warrant, Expires 1/16/2025 | 30,320 | 438,353 | 1,481,132 | 1.2 | % | |||||||||||||
HMN Holdco, LLC (g) | Media | Warrants to Purchase Limited Liability Company Interests (Common), Expires 5/16/2024 | 57,872 | - | 2,530,743 | 2.0 | % | |||||||||||||
HMN Holdco, LLC (g) | Media | Warrants to Purchase Limited Liability Company Interests (Preferred), Expires 5/16/2024 | 8,139 | - | 413,217 | 0.3 | % | |||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Media | 13,522,297 | 18,106,139 | 14.2 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Elyria Foundry Company, L.L.C. (d), (g) | Metals | Common Stock | 35,000 | 9,217,564 | 1,458,100 | 1.1 | % | |||||||||||||
Elyria Foundry Company, L.L.C. (d) | Metals | Second Lien Term Loan 15.00% PIK, 8/10/2022 | $ | 437,500 | 437,500 | 437,500 | 0.4 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Metals | 9,655,064 | 1,895,600 | 1.5 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Mercury Network, LLC | Real Estate | Second Lien Term Loan (L+10.50%), 11.71% Cash, 3/17/2022 | $ | 12,988,202 | 12,885,683 | 13,118,084 | 10.2 | % | ||||||||||||
Mercury Network, LLC (g) | Real Estate | Common Stock | 580,559 | 857,829 | 2,630,551 | 2.1 | % | |||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Real Estate | 13,743,512 | 15,748,635 | 12.3 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Sub Total Non-control/Non-affiliated investments | 291,471,679 | 278,767,064 | 218.5 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Control investments - 39.9% (b) | ||||||||||||||||||||
Easy Ice, LLC (f) | Business Services | Preferred Equity 10.00% PIK | 5,080,000 | 8,124,444 | 8,131,921 | 6.4 | % | |||||||||||||
Easy Ice, LLC (d), (f) | Business Services | First Lien Term Loan (L+10.25%), 11.31% Cash, 1/15/2020 | $ | 26,680,000 | 26,480,450 | 26,680,000 | 20.9 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Business Services | 34,604,894 | 34,811,921 | 27.3 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (d), (e), (f) | Structured Finance Securities | Other/Structured Finance Securities 22.56%, 10/20/2025 | $ | 30,000,000 | 9,520,445 | 11,563,263 | 9.0 | % | ||||||||||||
Saratoga Investment Corp. Class F Note (a), (d), (f) | Structured Finance Securities | Other/Structured Finance Securities (L+8.50%), 9.71%, 10/20/2025 | $ | 4,500,000 | 4,500,000 | 4,547,700 | 3.6 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Structured Finance Securities | 14,020,445 | 16,110,963 | 12.6 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Sub Total Control investments | 48,625,339 | 50,922,884 | 39.9 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL INVESTMENTS - 258.4% (b) | $ | 340,097,018 | $ | 329,689,948 | 258.4 | % | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
| Principal | Cost | Fair Value | % of Net Assets | |||||||||||||||||
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 21.8% (b) | ||||||||||||||||||||
U.S. Bank Money Market (k) | $ | 27,773,704 | $ | 27,773,704 | $ | 27,773,704 | 21.8 | % | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total cash and cash equivalents and cash and cash equivalents, reserve accounts | $ | 27,773,704 | $ | 27,773,704 | $ | 27,773,704 | 21.8 | % | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
| (a) | Represents a non-qualifying investment as defined under Section 55 (a) of the Investment Company Act of 1940, as amended. Non-qualifying assets represent 4.9% of the Company's portfolio at fair value. As a BDC, the Company can only invest 30% of its portfolio in non-qualifying assets. |
| (b) | Percentages are based on net assets of $127,608,653 as of May 31, 2017. |
| (c) | Because there is no readily available market value for these investments, the fair value of these investments is approved in good faith by our board of directors (see Note 3 to the consolidated financial statements). |
| (d) | These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 6 to the consolidated financial statements). |
| (e) | This investment does not have a stated interest rate that is payable thereon. As a result, the 22.56% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment. |
| (f) | As defined in the Investment Company Act, we "Control" this portfolio company because we own more than 25% of the portfolio company's outstanding voting securities. Transactions during the period in which the issuer was both an Affiliate and a portfolio company that we Control are as follows: |
Company | Purchases | Redemptions | Sales (Cost) | Interest Income | Management and Incentive Fee Income | Net Realized Gains (Losses) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
Easy Ice, LLC | $ | - | $ | - | $ | - | $ | 1,037,917 | $ | - | $ | - | $ | (8,811 | ) | |||||||||||||
Saratoga Investment Corp. CLO 2013-1, Ltd. | $ | - | $ | - | $ | - | $ | 453,586 | $ | 480,976 | $ | - | $ | 1,411,943 | ||||||||||||||
Saratoga Investment Corp. Class F Note | $ | - | $ | - | $ | - | $ | 105,992 | $ | - | $ | - | $ | 48,150 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| (g) | Non-income producing at May 31, 2017. |
| (h) | Includes securities issued by an affiliate of the company. |
| (i) | The investment has an unfunded commitment as of May 31, 2017 (see Note 7 to the consolidated financial statements). |
| (j) | The entire commitment was unfunded at May 31, 2017. As such, no interest is being earned on this investment. |
| (k) | Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company's Consolidated Statements of Assets and Liabilities as of May 31, 2017. |
5
Saratoga Investment Corp.
Consolidated Schedule of Investments
February 28, 2017
Company | Industry | Investment Interest Rate/ | Principal/ Number of Shares | Cost | Fair Value (c) | % of Net Assets | ||||||||||||||
Non-control/Non-affiliated investments - 190.5% (b) | ||||||||||||||||||||
Apex Holdings Software Technologies, LLC | Business Services | First Lien Term Loan (L+8.00%), 9.05% Cash, 9/21/2021 | $ | 18,000,000 | $ | 17,857,818 | $ | 17,843,400 | 14.0 | % | ||||||||||
Avionte Holdings, LLC (g) | Business Services | Common Stock | 100,000 | 100,000 | 251,000 | 0.2 | % | |||||||||||||
BMC Software, Inc. (d) | Business Services | Syndicated Loan (L+4.00%), 5.05% Cash, 9/10/2020 | $ | 5,611,666 | 5,582,551 | 5,639,163 | 4.4 | % | ||||||||||||
Courion Corporation | Business Services | Second Lien Term Loan (L+10.00%), 11.05% Cash, 6/1/2021 | $ | 15,000,000 | 14,879,353 | 14,230,500 | 11.2 | % | ||||||||||||
Emily Street Enterprises, L.L.C. | Business Services | Senior Secured Note (L+8.50%), 10.00% Cash, 1/23/2020 | $ | 3,300,000 | 3,282,213 | 3,316,500 | 2.6 | % | ||||||||||||
Emily Street Enterprises, L.L.C. (g) | Business Services | Warrant Membership Interests Expires 12/28/2022 | 49,318 | 400,000 | 394,544 | 0.3 | % | |||||||||||||
Erwin, Inc. | Business Services | Second Lien Term Loan (L+11.50%), 12.55% (11.50% Cash/1.00% PIK), 8/28/2021 | $ | 13,111,929 | 13,000,581 | 13,111,929 | 10.2 | % | ||||||||||||
GreyHeller LLC | Business Services | First Lien Term Loan (L+11.00%), 12.05% Cash, 11/16/2021 | $ | 7,000,000 | 6,933,141 | 6,930,000 | 5.4 | % | ||||||||||||
GreyHeller LLC (i), (j) | Business Services | Delayed Draw Term Loan B (L+11.00%), 12.05% Cash, 11/16/2021 | $ | - | - | - | 0.0 | % | ||||||||||||
GreyHeller LLC (g) | Business Services | Common Stock | 850,000 | 850,000 | 850,000 | 0.7 | % | |||||||||||||
Help/Systems Holdings, Inc.(Help/Systems, LLC) | Business Services | First Lien Term Loan (L+5.25%), 6.30% Cash, 10/8/2021 | $ | 5,947,481 | 5,857,960 | 5,947,481 | 4.7 | % | ||||||||||||
Help/Systems Holdings, Inc.(Help/Systems, LLC) | Business Services | Second Lien Term Loan (L+9.50%), 10.55% Cash, 10/8/2022 | $ | 3,000,000 | 2,922,606 | 2,926,800 | 2.3 | % | ||||||||||||
Identity Automation Systems | Business Services | Convertible Promissory Note 13.50% (6.75% Cash/6.75% PIK), 8/18/2018 | 611,517 | 611,517 | 611,517 | 0.5 | % | |||||||||||||
Identity Automation Systems (g) | Business Services | Common Stock Class A Units | 232,616 | 232,616 | 386,143 | 0.3 | % | |||||||||||||
Identity Automation Systems | Business Services | First Lien Term Loan (L+9.25%), 10.30% (9.25% Cash/1.75% PIK) 12/18/2020 | $ | 10,293,791 | 10,223,741 | 10,293,791 | 8.1 | % | ||||||||||||
Knowland Technology Holdings, L.L.C. | Business Services | First Lien Term Loan (L+8.75%), 9.80% Cash, 7/20/2021 | $ | 17,777,730 | 17,692,307 | 17,777,730 | 14.0 | % | ||||||||||||
Microsystems Company | Business Services | Second Lien Term Loan (L+10.00%), 11.05% Cash, 7/1/2022 | $ | 8,000,000 | 7,927,489 | 7,964,800 | 6.3 | % | ||||||||||||
National Waste Partners | Business Services | First Lien Term Loan 10.00% Cash, 2/13/2022 | $ | 9,000,000 | 8,910,000 | 8,910,000 | 7.0 | % | ||||||||||||
Vector Controls Holding Co., LLC (d) | Business Services | First Lien Term Loan, 14.00% (12.00% Cash/2.00% PIK), 3/6/2018 | $ | 8,819,270 | 8,778,186 | 8,819,270 | 6.9 | % | ||||||||||||
Vector Controls Holding Co., LLC (d), (g) | Business Services | Warrants to Purchase Limited Liability Company Interests, Expires 5/31/2025 | 343 | - | 327,200 | 0.3 | % | |||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Business Services | 126,042,079 | 126,531,768 | 99.4 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Targus Holdings, Inc. (d), (g) | Consumer Products | Common Stock | 210,456 | 1,791,242 | 29,241 | 0.0 | % | |||||||||||||
Targus Holdings, Inc. (d) | Consumer Products | Second Lien Term Loan A-2 15.00% PIK, 12/31/2019 | $ | 234,630 | 234,630 | 234,630 | 0.2 | % | ||||||||||||
Targus Holdings, Inc. (d) | Consumer Products | Second Lien Term Loan B 15.00% PIK, 12/31/2019 | $ | 703,889 | 703,889 | 703,889 | 0.6 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Consumer Products | 2,729,761 | 967,760 | 0.8 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
My Alarm Center, LLC | Consumer Services | Second Lien Term Loan (L+11.00%), 12.05% Cash, 7/9/2019 | $ | 9,375,000 | 9,359,492 | 7,061,250 | 5.6 | % | ||||||||||||
PrePaid Legal Services, Inc. (d) | Consumer Services | First Lien Term Loan (L+5.25%), 6.50% Cash, 7/1/2019 | $ | 2,687,143 | 2,672,435 | 2,687,143 | 2.1 | % | ||||||||||||
PrePaid Legal Services, Inc. (d) | Consumer Services | Second Lien Term Loan (L+9.00%), 10.25% Cash, 7/1/2020 | $ | 11,000,000 | 10,966,188 | 11,000,000 | 8.6 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Consumer Services | 22,998,115 | 20,748,393 | 16.3 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
M/C Acquisition Corp., L.L.C. (d), (g) | Education | Class A Common Stock | 544,761 | 30,241 | - | 0.0 | % | |||||||||||||
M/C Acquisition Corp., L.L.C. (d) | Education | First Lien Term Loan 1.0% Cash, 3/31/2018 | $ | 2,321,073 | 1,193,790 | 8,087 | 0.0 | % | ||||||||||||
Texas Teachers of Tomorrow, LLC (g), (h) | Education | Common Stock | 750 | 750,000 | 919,680 | 0.7 | % | |||||||||||||
Texas Teachers of Tomorrow, LLC | Education | Second Lien Term Loan (L+9.75%), 10.80% Cash, 6/2/2021 | $ | 10,000,000 | 9,918,572 | 10,000,000 | 7.9 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Education | 11,892,603 | 10,927,767 | 8.6 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TM Restaurant Group L.L.C. (g) | Food and Beverage | First Lien Term Loan (L+8.50%), 9.75% Cash, 7/17/2017 | $ | 9,358,694 | 9,331,446 | 8,422,825 | 6.6 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Food and Beverage | 9,331,446 | 8,422,825 | 6.6 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Censis Technologies, Inc. | Healthcare Services | First Lien Term Loan B (L+10.00%), 11.05% Cash, 7/24/2019 | $ | 11,100,000 | 10,977,689 | 10,940,160 | 8.6 | % | ||||||||||||
Censis Technologies, Inc. (g), (h) | Healthcare Services | Limited Partner Interests | 999 | 999,000 | 886,772 | 0.7 | % | |||||||||||||
ComForCare Health Care | Healthcare Services | First Lien Term Loan (L+8.50%), 9.55% Cash, 1/31/2022 | $ | 10,500,000 | 10,398,957 | 10,395,000 | 8.2 | % | ||||||||||||
Roscoe Medical, Inc. (d), (g) | Healthcare Services | Common Stock | 5,081 | 508,077 | 680,823 | 0.5 | % | |||||||||||||
Roscoe Medical, Inc. | Healthcare Services | Second Lien Term Loan 11.25% Cash, 9/26/2019 | $ | 4,200,000 | 4,155,827 | 4,179,000 | 3.3 | % | ||||||||||||
Ohio Medical, LLC (g) | Healthcare Services | Common Stock | 5,000 | 500,000 | 288,800 | 0.2 | % | |||||||||||||
Ohio Medical, LLC | Healthcare Services | Senior Subordinated Note 12.00%, 7/15/2021 | $ | 7,300,000 | 7,238,831 | 6,989,750 | 5.5 | % | ||||||||||||
Zest Holdings, LLC (d) | Healthcare Services | Syndicated Loan (L+4.75%), 5.80% Cash, 8/17/2020 | $ | 4,136,911 | 4,085,888 | 4,183,658 | 3.3 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Healthcare Services | 38,864,269 | 38,543,963 | 30.3 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
HMN Holdco, LLC | Media | First Lien Term Loan 12.00% Cash, 7/8/2021 | $ | 8,462,482 | 8,376,876 | 8,462,482 | 6.6 | % | ||||||||||||
HMN Holdco, LLC | Media | Delayed Draw First Lien Term Loan 12.00% Cash, 7/8/2021 | $ | 4,800,000 | 4,751,258 | 4,800,000 | 3.8 | % | ||||||||||||
HMN Holdco, LLC (g) | Media | Class A Series, Expires 1/16/2025 | 4,264 | 61,647 | 294,770 | 0.2 | % | |||||||||||||
HMN Holdco, LLC (g) | Media | Class A Warrant, Expires 1/16/2025 | 30,320 | 438,353 | 1,706,410 | 1.3 | % | |||||||||||||
HMN Holdco, LLC (g) | Media | Warrants to Purchase Limited Liability Company Interests (Common), Expires 5/16/2024 | 57,872 | - | 2,961,310 | 2.3 | % | |||||||||||||
HMN Holdco, LLC (g) | Media | Warrants to Purchase Limited Liability Company Interests (Preferred), Expires 5/16/2024 | 8,139 | - | 473,690 | 0.4 | % | |||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Media | 13,628,134 | 18,698,662 | 14.6 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Elyria Foundry Company, L.L.C. (d), (g) | Metals | Common Stock | 35,000 | 9,217,564 | 413,350 | 0.3 | % | |||||||||||||
Elyria Foundry Company, L.L.C. (d) | Metals | Second Lien Term Loan 15.00% PIK, 8/10/2022 | $ | 437,500 | 437,500 | 437,500 | 0.4 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Metals | 9,655,064 | 850,850 | 0.7 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Mercury Network, LLC | Real Estate | First Lien Term Loan (L+9.50%), 10.55% Cash, 8/24/2021 | $ | 15,773,875 | 15,644,382 | 15,773,875 | 12.4 | % | ||||||||||||
Mercury Network, LLC (g) | Real Estate | Common Stock | 413,043 | 413,043 | 1,065,651 | 0.8 | % | |||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Real Estate | 16,057,425 | 16,839,526 | 13.2 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Sub Total Non-control/Non-affiliated investments | 251,198,896 | 242,531,514 | 190.5 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Control investments - 39.4% (b) | ||||||||||||||||||||
Easy Ice, LLC (g) | Business Services | Preferred Equity | 5,080,000 | 8,000,000 | 8,000,000 | 6.3 | % | |||||||||||||
Easy Ice, LLC (d), (f) | Business Services | First Lien Term Loan (L+10.25%), 11.02% Cash, 1/15/2020 | $ | 26,680,000 | 26,464,162 | 26,680,000 | 20.9 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Business Services | 34,464,162 | 34,680,000 | 27.2 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (d), (e), (f) | Structured Finance Securities | Other/Structured Finance Securities 14.87%, 10/20/2025 | $ | 30,000,000 | 10,319,374 | 10,950,249 | 8.7 | % | ||||||||||||
Saratoga Investment Corp. Class F Note (a), (d), (f) | Structured Finance Securities | Other/Structured Finance Securities (L+8.50%), 9.55%, 10/20/2025 | $ | 4,500,000 | 4,500,000 | 4,499,550 | 3.5 | % | ||||||||||||
|
|
|
|
|
| |||||||||||||||
| Total Structured Finance Securities | 14,819,374 | 15,449,799 | 12.2 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Sub Total Control investments | 49,283,536 | 50,129,799 | 39.4 | % | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL INVESTMENTS - 229.9% (b) | $ | 300,482,432 | $ | 292,661,313 | 229.9 | % | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
| Principal | Cost | Fair Value | % of Net Assets | |||||||||||||||||
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 17.4% (b) | ||||||||||||||||||||
U.S. Bank Money Market (k) | $ | 22,087,968 | $ | 22,087,968 | $ | 22,087,968 | 17.4 | % | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total cash and cash equivalents and cash and cash equivalents, reserve accounts | $ | 22,087,968 | $ | 22,087,968 | $ | 22,087,968 | 17.4 | % | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
| (a) | Represents a non-qualifying investment as defined under Section 55(a) of the Investment Company Act of 1940, as amended. Non-qualifying assets represent 5.3% of the Company's portfolio at fair value. As a BDC, the Company can only invest 30% of its portfolio in non-qualifying assets. |
| (b) | Percentages are based on net assets of $127,294,777 as of February 28, 2017. |
| (c) | Because there is no readily available market value for these investments, the fair value of these investments is approved in good faith by our board of directors (see Note 3 to the consolidated financial statements). |
| (d) | These securities are pledged as collateral under a senior secured revolving credit facility (see Note 6 to the consolidated financial statements). |
| (e) | This investment does not have a stated interest rate that is payable thereon. As a result, the 14.87% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment. |
| (f) | As defined in the Investment Company Act, we "Control" this portfolio company because we own more than 25% of the portfolio company's outstanding voting securities. Transactions during the period in which the issuer was both an Affiliate and a portfolio company that we Control are as follows: |
| Sales (Cost) | Interest Income | Management Fee Income | Net Realized Gains (Losses) | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||
Company | Purchases | Redemptions | ||||||||||||||||||||||||||
Easy Ice, LLC | $ | 20,553,200 | $ | - | $ | - | $ | 217,362 | $ | - | $ | - | $ | 283,226 | ||||||||||||||
Saratoga Investment Corp. CLO 2013-1, Ltd. | $ | - | $ | - | $ | - | $ | 1,941,914 | $ | 1,499,001 | $ | - | $ | 833,646 | ||||||||||||||
Saratoga Investment Corp. Class F Note | $ | 4,500,000 | $ | - | $ | - | $ | 122,121 | $ | - | $ | - | $ | (450 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| (g) | Non-income producing at February 28, 2017. |
| (h) | Includes securities issued by an affiliate of the company. |
| (i) | The investment has an unfunded commitment as of February 28, 2017 (see Note 7 to the consolidated financial statements). |
| (j) | The entire commitment was unfunded at February 28, 2017. As such, no interest is being earned on this investment. |
| (k) | Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company's Consolidated Statements of Assets and Liabilities as of February 28, 2017. |
6
Saratoga Investment Corp.
Consolidated Statements of Changes in Net Assets
(unaudited)
| For the three months ended May 31, 2017 | For the three months ended May 31, 2016 | |||||||
INCREASE FROM OPERATIONS: | ||||||||
Net investment income | $ | 3,504,449 | $ | 2,538,549 | ||||
Net realized gain from investments | 95,589 | 6,102,905 | ||||||
Net unrealized depreciation on investments | (2,585,951 | ) | (5,353,867 | ) | ||||
|
|
|
| |||||
Net increase in net assets from operations | 1,014,087 | 3,287,587 | ||||||
|
|
|
| |||||
DECREASE FROM SHAREHOLDER DISTRIBUTIONS: | ||||||||
Distributions declared | (2,665,516 | ) | (2,346,311 | ) | ||||
|
|
|
| |||||
Net decrease in net assets from shareholder distributions | (2,665,516 | ) | (2,346,311 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from issuance of common stock | 1,367,168 | - | ||||||
Stock dividend distribution | 622,088 | 1,750,901 | ||||||
Repurchases of common stock | - | (713,184 | ) | |||||
Offering costs | (23,951 | ) | - | |||||
|
|
|
| |||||
Net increase in net assets from capital share transactions | 1,965,305 | 1,037,717 | ||||||
|
|
|
| |||||
Total increase in net assets | 313,876 | 1,978,993 | ||||||
Net assets at beginning of period | 127,294,777 | 125,149,875 | ||||||
|
|
|
| |||||
Net assets at end of period | $ | 127,608,653 | $ | 127,128,868 | ||||
|
|
|
| |||||
Net asset value per common share | $ | 21.69 | $ | 22.11 | ||||
Common shares outstanding at end of period | 5,884,475 | 5,750,222 | ||||||
Distribution in excess of net investment income | $ | (26,898,415 | ) | $ | (26,025,665 | ) | ||
See accompanying notes to consolidated financial statements.
7
Saratoga Investment Corp.
Consolidated Statements of Cash Flows
(unaudited)
| For the three months ended May 31, 2017 | For the three months ended May 31, 2016 | |||||||
Operating activities | ||||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 1,014,087 | $ | 3,287,587 | ||||
ADJUSTMENTS TO RECONCILE NET INCREASE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ||||||||
Payment-in-kind interest income | (261,677 | ) | (134,256 | ) | ||||
Net accretion of discount on investments | (168,970 | ) | (136,568 | ) | ||||
Amortization of deferred debt financing costs | 236,124 | 262,663 | ||||||
Net realized gain from investments | (95,589 | ) | (6,102,905 | ) | ||||
Net unrealized depreciation on investments | 2,585,951 | 5,353,867 | ||||||
Proceeds from sales and repayments of investments | 5,876,640 | 20,588,570 | ||||||
Purchase of investments | (44,964,990 | ) | - | |||||
(Increase) decrease in operating assets: | ||||||||
Interest receivable | (358,485 | ) | (246,128 | ) | ||||
Management and incentive fee receivable | (105,378 | ) | (478 | ) | ||||
Other assets | 1,938 | (9,834 | ) | |||||
Receivable from unsettled trades | - | 300,000 | ||||||
Increase (decrease) in operating liabilities: | ||||||||
Base management and incentive fees payable | (1,821,732 | ) | 159,089 | |||||
Accounts payable and accrued expenses | 64,171 | 82,384 | ||||||
Interest and debt fees payable | (958,745 | ) | (513,146 | ) | ||||
Payable for repurchases of common stock | - | 15,930 | ||||||
Directors fees payable | - | 22,500 | ||||||
Due to manager | (52,200 | ) | 6,977 | |||||
|
|
|
| |||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (39,008,855 | ) | 22,936,252 | |||||
|
|
|
| |||||
Financing activities | ||||||||
Borrowings on debt | 46,500,000 | - | ||||||
Payments of deferred debt financing costs | (1,108,645 | ) | (313,400 | ) | ||||
Proceeds from issuance of common stock | 1,367,168 | - | ||||||
Payments of offering costs | (20,504 | ) | - | |||||
Repurchases of common stock | - | (713,184 | ) | |||||
Payments of cash dividends | (2,043,428 | ) | (1,471,009 | ) | ||||
|
|
|
| |||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 44,694,591 | (2,497,593 | ) | |||||
|
|
|
| |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS | 5,685,736 | 20,438,659 | ||||||
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD | 22,087,968 | 7,034,783 | ||||||
|
|
|
| |||||
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD | $ | 27,773,704 | $ | 27,473,442 | ||||
|
|
|
| |||||
Supplemental information: | ||||||||
Interest paid during the period | $ | 3,246,228 | $ | 2,618,539 | ||||
Cash paid for taxes | $ | 54,084 | $ | 140,029 | ||||
Supplemental non-cash information: | ||||||||
Payment-in-kind interest income | $ | 261,677 | $ | 134,256 | ||||
Net accretion of discount on investments | $ | 168,970 | $ | 136,568 | ||||
Amortization of deferred debt financing costs | $ | 236,124 | $ | 262,663 | ||||
Stock dividend distribution | $ | 622,088 | $ | 1,750,901 | ||||
See accompanying notes to consolidated financial statements.
8
SARATOGA INVESTMENT CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2017
(unaudited)
Note 1. Organization
Saratoga Investment Corp. (the "Company", "we", "our" and "us") is a non-diversified closed end management investment company incorporated in Maryland that has elected to be treated and is regulated as a business development company ("BDC") under the Investment Company Act of 1940 (the "1940 Act"). The Company commenced operations on March 23, 2007 as GSC Investment Corp. and completed the initial public offering ("IPO") on March 28, 2007. The Company has elected to be treated as a regulated investment company ("RIC") under subchapter M of the Internal Revenue Code (the "Code"). The Company expects to continue to qualify and to elect to be treated, for tax purposes, as a RIC. The Company's investment objective is to generate current income and, to a lesser extent, capital appreciation from its investments.
GSC Investment, LLC (the "LLC") was organized in May 2006 as a Maryland limited liability company. As of February 28, 2007, the LLC had not yet commenced its operations and investment activities.
On March 21, 2007, the Company was incorporated and concurrently therewith the LLC was merged with and into the Company, with the Company as the surviving entity, in accordance with the procedure for such merger in the LLC's limited liability company agreement and Maryland law. In connection with such merger, each outstanding limited liability company interest of the LLC was converted into a share of common stock of the Company.
On July 30, 2010, the Company changed its name from "GSC Investment Corp." to "Saratoga Investment Corp." in connection with the consummation of a recapitalization transaction.
The Company is externally managed and advised by the investment adviser, Saratoga Investment Advisors, LLC (the "Manager"), pursuant to a management agreement (the "Management Agreement"). Prior to July 30, 2010, the Company was managed and advised by GSCP (NJ), L.P.
The Company has established wholly-owned subsidiaries, SIA Avionte, Inc., SIA Easy Ice, LLC, SIA GH, Inc., SIA Mercury, Inc., SIA TT Inc., and SIA Vector Inc., which are structured as Delaware entities, or tax blockers, to hold equity or equity-like investments in portfolio companies organized as limited liability companies, or LLCs (or other forms of pass through entities). Tax blockers are consolidated for accounting purposes, but are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of portfolio companies.
On March 28, 2012, our wholly-owned subsidiary, Saratoga Investment Corp. SBIC, LP ("SBIC LP"), received a Small Business Investment Company ("SBIC") license from the Small Business Administration ("SBA").
On April 2, 2015, the SBA issued a "green light" letter inviting the Company to continue the application process to obtain a license to form and operate its second SBIC subsidiary. On September 27, 2016, the SBA informed us that as part of their continued review of our application for a second license, and in order to ensure that they were reviewing the most current information available, we would need to update all previously submitted materials and invited us to reapply. As a result of this request, with which we are in the process of complying, the existing "green light" letter that the SBA issued to us has expired. If approved in the future, a second SBIC license would provide us an incremental source of long-term capital by permitting us to issue up to $150.0 million of additional SBA-guaranteed debentures in addition to the $150.0 million already approved under the first license.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with generally accepted accounting principles ("U.S. GAAP"), are stated in U.S. Dollars and include the accounts of the Company
9
and its special purpose financing subsidiary, Saratoga Investment Funding, LLC (previously known as GSC Investment Funding LLC), SBIC LP, SIA Avionte, Inc., SIA Easy Ice, LLC, SIA GH, Inc., SIA Mercury, Inc., SIA TT Inc., and SIA Vector Inc. All intercompany accounts and transactions have been eliminated in consolidation. All references made to the "Company," "we," and "us" herein include Saratoga Investment Corp. and its consolidated subsidiaries, except as stated otherwise.
The Company and SBIC LP are both considered to be investment companies for financial reporting purposes and have applied the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946, Financial Services - Investment Companies ("ASC 946"). There have been no changes to the Company or SBIC LP's status as investment companies during the three months ended May 31, 2017.
Use of Estimates in the Preparation of Financial Statements
The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and income, gains (losses) and expenses during the period reported. Actual results could differ materially from those estimates.
Cash and Cash Equivalents
Cash and cash equivalents include short-term, liquid investments in a money market fund. Cash and cash equivalents are carried at cost which approximates fair value. Per section 12(d)(1)(A) of the 1940 Act, the Company may not invest in another registered investment company such as, a money market fund if such investment would cause the Company to exceed any of the following limitations:
| • | we were to own more than 3.0% of the total outstanding voting stock of the money market fund; |
| • | we were to hold securities in the money market fund having an aggregate value in excess of 5.0% of the value of our total assets, except as allowed pursuant to Rule 12d1-1 of Section 12(d)(1) of the 1940 Act which is designed to permit "cash sweep" arrangements rather than investments directly in short-term instruments; or |
| • | we were to hold securities in money market funds and other registered investment companies and BDCs having an aggregate value in excess of 10.0% of the value of our total assets. |
As of May 31, 2017, the Company did not exceed any of these limitations.
Cash and Cash Equivalents, Reserve Accounts
Cash and cash equivalents, reserve accounts include amounts held in designated bank accounts in the form of cash and short-term liquid investments in money market funds, representing payments received on secured investments or other reserved amounts associated with the Company's $45.0 million senior secured revolving credit facility with Madison Capital Funding LLC. The Company is required to use these amounts to pay interest expense, reduce borrowings, or pay other amounts in accordance with the terms of the senior secured revolving credit facility.
In addition, cash and cash equivalents, reserve accounts also include amounts held in designated bank accounts, in the form of cash and short-term liquid investments in money market funds, within our wholly-owned subsidiary, SBIC LP.
In November 2016, the FASB issued Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires that the statements of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statements of cash flows. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted and is to be applied on a retrospective basis. The Company has adopted the provisions of ASU 2016-18 as of November 30, 2016. The adoption of the provisions of ASU 2016-18 did not materially impact the Company's consolidated financial position or results of operations. Prior period amounts were reclassified to conform to the current period presentation.
The following table provides a reconciliation of cash and cash equivalents and cash and cash equivalents, reserve accounts reported within the consolidated statements of assets and liabilities that sum to the total of the same such amounts shown in the consolidated statements of cash flows:
10
| May 31, 2017 | May 31, 2016 | |||||||
Cash and cash equivalents | $ | 1,246,815 | $ | 1,309,111 | ||||
Cash and cash equivalents, reserve accounts | 26,526,889 | 26,164,331 | ||||||
|
|
|
| |||||
Total cash and cash equivalents, and cash and cash equivalents, reserve accounts | $ | 27,773,704 | $ | 27,473,442 | ||||
|
|
|
| |||||
Investment Classification
The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, "Control Investments" are defined as investments in companies in which we own more than 25.0% of the voting securities or maintain greater than 50.0% of the board representation. Under the 1940 Act, "Affiliated Investments" are defined as those non-control investments in companies in which we own between 5.0% and 25.0% of the voting securities. Under the 1940 Act, "Non-affiliated Investments" are defined as investments that are neither Control Investments nor Affiliated Investments.
Investment Valuation
The Company accounts for its investments at fair value in accordance with the FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires the Company to assume that its investments are to be sold at the balance sheet date in the principal market to independent market participants, or in the absence of a principal market, in the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.
Investments for which market quotations are readily available are fair valued at such market quotations obtained from independent third party pricing services and market makers subject to any decision by our board of directors to approve a fair value determination to reflect significant events affecting the value of these investments. We value investments for which market quotations are not readily available at fair value as approved, in good faith, by our board of directors based on input from our Manager, the audit committee of our board of directors and a third party independent valuation firm. Determinations of fair value may involve subjective judgments and estimates. The types of factors that may be considered in determining the fair value of our investments include the nature and realizable value of any collateral, the portfolio company's ability to make payments, market yield trend analysis, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flow and other relevant factors.
The Company undertakes a multi-step valuation process each quarter when valuing investments for which market quotations are not readily available, as described below:
| • | Each investment is initially valued by the responsible investment professionals of Saratoga Investment Advisors and preliminary valuation conclusions are documented and discussed with our senior management; and |
| • | An independent valuation firm engaged by our board of directors independently reviews a selection of these preliminary valuations each quarter so that the valuation of each investment for which market quotes are not readily available is reviewed by the independent valuation firm at least once each fiscal year. |
In addition, all our investments are subject to the following valuation process:
| • | The audit committee of our board of directors reviews and approves each preliminary valuation and our Manager and independent valuation firm (if applicable) will supplement the preliminary valuation to reflect any comments provided by the audit committee; and |
| • | Our board of directors discusses the valuations and approves the fair value of each investment, in good faith, based on the input of our Manager, independent valuation firm (to the extent applicable) and the audit committee of our board of directors. |
The Company's investment in Saratoga Investment Corp. CLO 2013-1, Ltd. ("Saratoga CLO") is carried at fair value, which is based on a discounted cash flow model that utilizes prepayment, re-investment and loss assumptions based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for
11
equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flow models, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The models use a set of assumptions including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The assumptions are based on available market data and projections provided by third parties as well as management estimates. The Company uses the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investment in Saratoga CLO.
Because such valuations, and particularly valuations of private investments and private companies, are inherently uncertain, they may fluctuate over short periods of time and may be based on estimates. The determination of fair value may differ materially from the values that would have been used if a ready market for these investments existed. The Company's net asset value could be materially affected if the determinations regarding the fair value of our investments were materially higher or lower than the values that we ultimately realize upon the disposal of such investments.
Derivative Financial Instruments
The Company accounts for derivative financial instruments in accordance with ASC Topic 815, Derivatives and Hedging ("ASC 815"). ASC 815 requires recognizing all derivative instruments as either assets or liabilities on the consolidated statements of assets and liabilities at fair value. The Company values derivative contracts at the closing fair value provided by the counterparty. Changes in the values of derivative contracts are included in the consolidated statements of operations.
Investment Transactions and Income Recognition
Purchases and sales of investments and the related realized gains or losses are recorded on a trade-date basis. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on its investments when it is determined that interest is no longer collectible. Discounts and premiums on investments purchased are accreted/amortized over the life of the respective investment using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts and amortization of premiums on investments.
Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as a reduction in principal depending upon management's judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection.
Interest income on our investment in Saratoga CLO is recorded using the effective interest method in accordance with the provisions of ASC Topic 325-40, Investments-Other, Beneficial Interests in Securitized Financial Assets , ("ASC 325-40"), based on the anticipated yield and the estimated cash flows over the projected life of the investment. Yields are revised when there are changes in actual or estimated cash flows due to changes in prepayments and/or re-investments, credit losses or asset pricing. Changes in estimated yield are recognized as an adjustment to the estimated yield over the remaining life of the investment from the date the estimated yield was changed.
Other Income
Other income includes dividends received, origination fees, structuring fees and advisory fees, and is recorded in the consolidated statements of operations when earned.
Payment-in-Kind Interest
The Company holds debt investments in its portfolio that contain a payment-in-kind ("PIK") interest provision. The PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. We stop accruing PIK interest if we do not expect the issuer to be able to pay all principal and interest when due.
Deferred Debt Financing Costs
Financing costs incurred in connection with our credit facility and notes are deferred and amortized using the straight line method over the life of the respective facility and debt securities. Financing costs incurred in connection with our SBA debentures are deferred and amortized using the effective yield method over the life of the debentures.
12
ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03") requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company has adopted the provisions of ASU 2015-03 as of February 28, 2015, by reclassifying deferred debt financing costs from within total assets to within total liabilities as a contra-liability. Prior period amounts were reclassified to conform to the current period presentation.
Contingencies
In the ordinary course of business, the Company may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Company. Based on its history and experience, management feels that the likelihood of such an event is remote. Therefore, the Company has not accrued any liabilities in connection with such indemnifications.
In the ordinary course of business, the Company may directly or indirectly be a defendant or plaintiff in legal actions with respect to bankruptcy, insolvency or other types of proceedings. Such lawsuits may involve claims that could adversely affect the value of certain financial instruments owned by the Company.
Income Taxes
The Company has filed an election to be treated for tax purposes as a RIC under the Code and, among other things, intends to make the requisite distributions to its stockholders which will relieve the Company from federal income taxes. Therefore, no provision has been recorded for federal income taxes.
In order to qualify as a RIC, among other requirements, the Company is required to timely distribute to its stockholders at least 90.0% of its investment company taxable income, as defined by the Code, for each fiscal tax year. The Company will be subject to a nondeductible U.S. federal excise tax of 4.0% on undistributed income if it does not distribute at least 98.0% of its ordinary income in any calendar year and 98.2% of its capital gain net income for each one-year period ending on October 31.
Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year dividend distributions into the next tax year and pay a 4.0% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions for excise tax purposes, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned.
In accordance with certain applicable U.S. Treasury regulations and private letter rulings issued by the Internal Revenue Service ("IRS"), a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC subject to a limitation on the aggregate amount of cash to be distributed to all stockholders, which limitation must be at least 20.0% of the aggregate declared distribution. If too many stockholders elect to receive cash, each stockholder electing to receive cash will receive a pro rata amount of cash (with the balance of the distribution paid in stock). In no event will any stockholder, electing to receive cash, receive less than 20.0% of his or her entire distribution in cash. If these and certain other requirements are met, for U.S federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock.
ASC 740, Income Taxes , ("ASC 740"), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions deemed to meet a "more-likely-than-not" threshold would be recorded as a tax benefit or expense in the current period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the consolidated statements of operations. During the fiscal year ended February 28, 2017, the Company did not incur any interest or penalties. Although we file federal and state tax returns, our major tax jurisdiction is federal. The 2014, 2015 and 2016 federal tax years for the Company remain subject to examination by the IRS. As of May 31, 2017 and February 28, 2017, there were no uncertain tax positions. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months.
13
Dividends
Dividends to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend is determined by the board of directors. Net realized capital gains, if any, are generally distributed at least annually, although we may decide to retain such capital gains for reinvestment.
We have adopted a dividend reinvestment plan ("DRIP") that provides for reinvestment of our dividend distributions on behalf of our stockholders unless a stockholder elects to receive cash. As a result, if our board of directors authorizes, and we declare, a cash dividend, then our stockholders who have not "opted out" of the DRIP by the dividend record date will have their cash dividends automatically reinvested into additional shares of our common stock, rather than receiving the cash dividends. We have the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator.
Capital Gains Incentive Fee
The Company records an expense accrual on the consolidated statements of operations, relating to the capital gains incentive fee payable on the consolidated statements of assets and liabilities, by the Company to its investment adviser when the net realized and unrealized gain on its investments exceed all net realized and unrealized capital losses on its investments given the fact that a capital gains incentive fee would be owed to the investment adviser if the Company were to liquidate its investment portfolio at such time. The actual incentive fee payable to the Company's investment adviser related to capital gains will be determined and payable in arrears at the end of each fiscal year and will include only realized capital gains net of realized and unrealized losses for the period.
New Accounting Pronouncements
In October 2016, the U.S. Securities and Exchange Commission ("SEC") adopted new rules and amended existing rules (together, "final rules") intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Company's consolidated financial statements and related disclosures.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"), which is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods therein. Early adoption is permitted. Management is currently evaluating the impact ASU 2016-15 will have on the Company's consolidated financial statements and disclosures.
In February 2016, the FASB issued ASU 2016-02, Amendments to the Leases ("ASU Topic 842"), which will require for all operating leases the recognition of a right-of-use asset and a lease liability, in the statement of financial position. The lease cost will be allocated over the lease term on a straight-line basis. This guidance is effective for annual and interim periods beginning after December 15, 2018. Management is currently evaluating the impact these changes will have on the Company's consolidated financial statements and disclosures.
In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). ASU 2016-01 retains many current requirements for the classification and measurement of financial instruments; however, it significantly revises an entity's accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments. This guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted for public business entities. Management is currently evaluating the impact the adoption of this standard has on the Company's consolidated financial statements and disclosures.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605). Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In May 2016, ASU 2016-12 amended ASU 2014-09 and deferred the effective period to December 15, 2017. Management is currently evaluating the impact these changes will have on the Company's consolidated financial statements and disclosures.
14
Risk Management
In the ordinary course of its business, the Company manages a variety of risks, including market risk and credit risk. Market risk is the risk of potential adverse changes to the value of investments because of changes in market conditions such as interest rate movements and volatility in investment prices.
Credit risk is the risk of default or non-performance by portfolio companies, equivalent to the investment's carrying amount.
The Company is also exposed to credit risk related to maintaining all of its cash and cash equivalents, including those in reserve accounts, at a major financial institution and credit risk related to any of its derivative counterparties.
The Company has investments in lower rated and comparable quality unrated high yield bonds and bank loans. Investments in high yield investments are accompanied by a greater degree of credit risk. The risk of loss due to default by the issuer is significantly greater for holders of high yield securities, because such investments are generally unsecured and are often subordinated to other creditors of the issuer.
Note 3. Investments
As noted above, the Company values all investments in accordance with ASC 820. ASC 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
ASC 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:
| • | Level 1-Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. |
| • | Level 2-Valuations based on inputs other than quoted prices in active markets, which are either directly or indirectly observable. |
| • | Level 3-Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The inputs used in the determination of fair value may require significant management judgment or estimation. Such information may be the result of consensus pricing information or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by a disclaimer would result in classification as a Level 3 asset, assuming no additional corroborating evidence. |
In addition to using the above inputs in investment valuations, the Company continues to employ the valuation policy approved by the board of directors that is consistent with ASC 820 and the 1940 Act (see Note 2). Consistent with our valuation policy, we evaluate the source of inputs, including any markets in which our investments are trading, in determining fair value.
The following table presents fair value measurements of investments, by major class, as of May 31, 2017 (dollars in thousands), according to the fair value hierarchy:
| Fair Value Measurements | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Syndicated loans | $ | - | $ | - | $ | 9,068 | $ | 9,068 | ||||||||
First lien term loans | - | - | 186,015 | 186,015 | ||||||||||||
Second lien term loans | - | - | 95,975 | 95,975 | ||||||||||||
Structured finance securities | - | - | 16,111 | 16,111 | ||||||||||||
Equity interests | - | - | 22,521 | 22,521 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | - | $ | - | $ | 329,690 | $ | 329,690 | ||||||||
|
|
|
|
|
|
|
| |||||||||
15
The following table presents fair value measurements of investments, by major class, as of February 28, 2017 (dollars in thousands), according to the fair value hierarchy:
| Fair Value Measurements | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Syndicated loans | $ | - | $ | - | $ | 9,823 | $ | 9,823 | ||||||||
First lien term loans | - | - | 159,097 | 159,097 | ||||||||||||
Second lien term loans | - | - | 87,750 | 87,750 | ||||||||||||
Structured finance securities | - | - | 15,450 | 15,450 | ||||||||||||
Equity interests | - | - | 20,541 | 20,541 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | - | $ | - | $ | 292,661 | $ | 292,661 | ||||||||
|
|
|
|
|
|
|
| |||||||||
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended May 31, 2017 (dollars in thousands):
| Syndicated loans | First lien term loans | Second lien term loans | Structured finance securities | Equity interests | Total | |||||||||||||||||||
Balance as of February 28, 2017 | $ | 9,823 | $ | 159,097 | $ | 87,750 | $ | 15,450 | $ | 20,541 | $ | 292,661 | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 21 | 387 | (5,855 | ) | 1,460 | 1,401 | (2,586 | ) | ||||||||||||||||
Purchases and other adjustments to cost | 6 | 43,738 | 1,073 | - | 579 | 45,396 | ||||||||||||||||||
Sales and repayments | (728 | ) | (1,440 | ) | (2,786 | ) | (799 | ) | (124 | ) | (5,877 | ) | ||||||||||||
Net realized gain (loss) from investments | (54 | ) | 7 | 19 | - | 124 | 96 | |||||||||||||||||
Restructures in | - | - | 15,774 | - | - | 15,774 | ||||||||||||||||||
Restructures out | - | (15,774 | ) | - | - | - | (15,774 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance as of May 31, 2017 | $ | 9,068 | $ | 186,015 | $ | 95,975 | $ | 16,111 | $ | 22,521 | $ | 329,690 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
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: | $ | 21 | $ | 387 | $ | (5,855 | ) | $ | 1,460 | $ | 1,401 | $ | (2,586 | ) | ||||||||||
Purchases and other adjustments to cost include purchases of new investments at cost, effects of refinancing/restructuring, accretion/amortization of income from discount/premium on debt securities, and PIK.
Sales and repayments represent net proceeds received from investments sold, and principal paydowns received, during the period.
Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur.
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended May 31, 2016 (dollars in thousands):
16
| Syndicated loans | First lien term loans | Second lien term loans | Structured finance securities | Equity interests | Total | |||||||||||||||||||
Balance as of February 29, 2016 | $ | 11,868 | $ | 144,643 | $ | 88,178 | $ | 12,828 | $ | 26,479 | $ | 283,996 | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 1,242 | (363 | ) | 1,268 | 583 | (8,084 | ) | (5,354 | ) | |||||||||||||||
Purchases and other adjustments to cost | 26 | 164 | 73 | - | 8 | 271 | ||||||||||||||||||
Sales and redemptions | (95 | ) | (13,078 | ) | - | (959 | ) | (6,457 | ) | (20,589 | ) | |||||||||||||
Net realized gain from investments | 1 | 126 | - | - | 5,976 | 6,103 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance as of May 31, 2016 | $ | 13,042 | $ | 131,492 | $ | 89,519 | $ | 12,452 | $ | 17,922 | $ | 264,427 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
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: | $ | 1,242 | $ | (297 | ) | $ | 1,268 | $ | 583 | $ | (2,329 | ) | $ | 467 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Purchases and other adjustments to cost include purchases of new investments at cost, effects of refinancing/restructuring, accretion/amortization of income from discount/premium on debt securities, and PIK.
Sales and repayments represent net proceeds received from investments sold, and principal paydowns received, during the period.
Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur.
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of May 31, 2017 were as follows (dollars in thousands):
| Fair Value | Valuation Technique | Unobservable Input | Range | |||||||
Syndicated loans | $ | 9,068 | Market Comparables | Third-Party Bid (%) | 100.5% - 101.1% | |||||
First lien term loans | 186,015 | Market Comparables | Market Yield (%) | 6.4% - 13.9% | ||||||
| EBITDA Multiples (x) | 3.0x - 5.5x | |||||||||
| Third-Party Bid (%) | 100% - 100.5% | |||||||||
Second lien term loans | 95,975 | Market Comparables | Market Yield (%) | 9.2% - 90.3% | ||||||
| Third-Party Bid (%) | 97.6% - 99.8% | |||||||||
Structured finance securities | 16,111 | Discounted Cash Flow | Discount Rate (%) | 8.0% - 13.0% | ||||||
Equity interests | 22,521 | Market Comparables | EBITDA Multiples (x) | 3.7x - 16.3x | ||||||
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of February 28, 2017 were as follows (dollars in thousands):
| Fair Value | Valuation Technique | Unobservable Input | Range | |||||||
Syndicated loans | $ | 9,823 | Market Comparables | Third-Party Bid (%) | 100.5% - 101.1% | |||||
First lien term loans | 159,097 | Market Comparables | Market Yield (%) | 6.3% - 39.0% | ||||||
| EBITDA Multiples (x) | 3.0x - 10.3x | |||||||||
| Third-Party Bid (%) | 100.0% - 100.2% | |||||||||
Second lien term loans | 87,750 | Market Comparables | Market Yield (%) | 10.1% - 26.4% | ||||||
| Third-Party Bid (%) | 97.6% - 99.9% | |||||||||
Structured finance securities | 15,450 | Discounted Cash Flow | Discount Rate (%) | 8.5% - 13.0% | ||||||
Equity interests | 20,541 | Market Comparables | EBITDA Multiples (x) | 3.7x - 12.0x | ||||||
17
For investments utilizing a market comparables valuation technique, a significant increase (decrease) in the market yield, in isolation, would result in a significantly lower (higher) fair value measurement, and a significant increase (decrease) in any of the EBITDA or revenue valuation multiples, in isolation, would result in a significantly higher (lower) fair value measurement. For investments utilizing a discounted cash flow valuation technique, a significant increase (decrease) in the discount rate, in isolation, would result in a significantly lower (higher) fair value measurement. For investments utilizing a market quote in deriving a value, a significant increase (decrease) in the market quote, in isolation, would result in a significantly higher (lower) fair value measurement.
The composition of our investments as of May 31, 2017, at amortized cost and fair value was as follows (dollars in thousands):
| Investments at Amortized Cost | Amortized Cost Percentage of Total Portfolio | Investments at Fair Value | Fair Value Percentage of Total Portfolio | |||||||||||||
Syndicated loans | $ | 8,892 | 2.6 | % | $ | 9,068 | 2.8 | % | ||||||||
First lien term loans | 187,097 | 55.0 | 186,015 | 56.4 | ||||||||||||
Second lien term loans | 104,605 | 30.8 | 95,975 | 29.1 | ||||||||||||
Structured finance securities | 14,020 | 4.1 | 16,111 | 4.9 | ||||||||||||
Equity interests | 25,483 | 7.5 | 22,521 | 6.8 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 340,097 | 100.0 | % | $ | 329,690 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
| |||||||||
The composition of our investments as of February 28, 2017, at amortized cost and fair value was as follows (dollars in thousands):
| Investments at Amortized Cost | Amortized Cost Percentage of Total Portfolio | Investments at Fair Value | Fair Value Percentage of Total Portfolio | |||||||||||||
Syndicated loans | $ | 9,669 | 3.2 | % | $ | 9,823 | 3.4 | % | ||||||||
First lien term loans | 160,436 | 53.4 | 159,097 | 54.3 | ||||||||||||
Second lien term loans | 90,655 | 30.2 | 87,750 | 30.0 | ||||||||||||
Structured finance securities | 14,819 | 4.9 | 15,450 | 5.3 | ||||||||||||
Equity interests | 24,903 | 8.3 | 20,541 | 7.0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 300,482 | 100.0 | % | $ | 292,661 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
| |||||||||
For loans and debt securities for which market quotations are not available, we determine their fair value based on third party indicative broker quotes, where available, or the assumptions that a hypothetical market participant would use to value the security in a current hypothetical sale using a market yield valuation methodology. In applying the market yield valuation methodology, we determine the fair value based on such factors as market participant assumptions including synthetic credit ratings, estimated remaining life, current market yield and interest rate spreads of similar securities as of the measurement date. If, in our judgment, the market yield methodology is not sufficient or appropriate, we may use additional methodologies such as an asset liquidation or expected recovery model.
For equity securities of portfolio companies and partnership interests, we determine the fair value based on the market approach with value then attributed to equity or equity like securities using the enterprise value waterfall valuation methodology. Under the enterprise value waterfall valuation methodology, we determine the enterprise fair value of the portfolio company and then waterfall the enterprise value over the portfolio company's securities in order of their preference relative to one another. To estimate the enterprise value of the portfolio company, we weigh some or all of the traditional market valuation methods and factors based on the individual circumstances of the portfolio company in order to estimate the enterprise value. The methodologies for performing investments may be based on, among other things: valuations of comparable public companies, recent sales of private and public comparable companies, discounting the forecasted cash flows of the portfolio company, third party valuations of the portfolio company, considering offers from third parties to buy the company, estimating the value to potential strategic buyers and considering the value of recent investments in the equity securities of the portfolio company. For non-performing investments, we may estimate the liquidation or collateral value of the portfolio company's assets and liabilities. We also take into account historical and anticipated financial results.
18
Our investment in Saratoga CLO is carried at fair value, which is based on a discounted cash flow model that utilizes prepayment, re-investment and loss assumptions based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flow models, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The models use a set of assumptions including projected default rates, recovery rates, reinvestment rate and prepayment rates in order to arrive at estimated valuations. The assumptions are based on available market data and projections provided by third parties as well as management estimates. In connection with the refinancing of the Saratoga CLO liabilities, we ran Intex models based on assumptions about the refinanced Saratoga CLO's structure, including capital structure, cost of liabilities and reinvestment period. We use the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investment in Saratoga CLO at May 31, 2017. The significant inputs at May 31, 2017 for the valuation model include:
| • | Default rates: 2.0% |
| • | Recovery rates: 35-70% |
| • | Discount rate: 13.0% |
| • | Prepayment rate: 20.0% |
| • | Reinvestment rate / price: L+350bps / $99.75. |
Note 4. Investment in Saratoga Investment Corp. CLO 2013-1, Ltd. ("Saratoga CLO")
On January 22, 2008, the Company invested $30.0 million in all of the outstanding subordinated notes of GSC Investment Corp. CLO 2007, Ltd., a collateralized loan obligation fund managed by the Company that invests primarily in senior secured loans. Additionally, the Company entered into a collateral management agreement with GSC Investment Corp. CLO 2007, Ltd. pursuant to which we act as collateral manager to it. The Saratoga CLO was initially refinanced in October 2013 and its reinvestment period ended in October 2016. On November 15, 2016, the Company completed the second refinancing of the Saratoga CLO. The Saratoga CLO refinancing, among other things, extended its reinvestment period to October 2018, and extended its legal maturity date to October 2025. Following the refinancing, the Saratoga CLO portfolio remained at the same size and with a similar capital structure of approximately $300.0 million in aggregate principal amount of predominantly senior secured first lien term loans. In addition to refinancing its liabilities, we also purchased $4.5 million in aggregate principal amount of the Class F notes tranche of the Saratoga CLO at par, with a coupon of LIBOR plus 8.5%.
The Saratoga CLO remains 100.0% owned and managed by Saratoga Investment Corp. Following the refinancing, the Company receives a base management fee of 0.10% and a subordinated management fee of 0.40% of the fee basis amount at the beginning of the collection period, paid quarterly to the extent of available proceeds. The Company is also entitled to an incentive management fee equal to 20.0% of excess cash flow to the extent the Saratoga CLO subordinated notes receive an internal rate of return paid in cash equal to or greater than 12.0%. For the three months ended May 31, 2017 and May 31, 2016, we accrued $0.4 million and $0.4 million in management fee income, respectively, and $0.5 million and $0.5 million in interest income, respectively, from Saratoga CLO. For the three months ended May 31, 2017, we accrued $0.1 million related to the incentive management fee from Saratoga CLO. For the three months ended May 31, 2016, we did not accrue any amounts related to the incentive management fee from Saratoga CLO as the 12.0% hurdle rate has not yet been achieved.
As of May 31, 2017, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $11.6 million. The Company determines the fair value of its investment in the subordinated notes of Saratoga CLO based on the present value of the projected future cash flows of the subordinated notes over the life of Saratoga CLO. As of May 31, 2017, Saratoga CLO had investments with a principal balance of $299.3 million and a weighted average spread over LIBOR of 4.0%, and had debt with a principal balance of $282.4 million with a weighted average spread over LIBOR of 2.4%. As a result, Saratoga CLO earns a "spread" between the interest income it receives on its investments and the interest expense it pays on its debt and other operating expenses, which is distributed quarterly to the Company as the holder of its subordinated notes. At May 31, 2017, the present value of the projected future cash flows of the subordinated notes was approximately $11.8 million, using a 13.0% discount rate. Saratoga Investment Corp. invested $32.8 million into the CLO since January 2008, and to date has since received distributions of $50.6 million and management fees of $16.9 million.
Below is certain financial information from the separate financial statements of Saratoga CLO as of May 31, 2017 (unaudited) and February 28, 2017 and for the three months ended May 31, 2017 (unaudited) and May 31, 2016 (unaudited).
19
Saratoga Investment Corp. CLO 2013-1, Ltd.
Statements of Assets and Liabilities
| As of | ||||||||
| May 31, 2017 | February 28, 2017 | |||||||
| (unaudited) | ||||||||
ASSETS | ||||||||
Investments | ||||||||
Fair Value Loans (amortized cost of $296,570,507 and $294,270,284, respectively) | $ | 294,679,202 | $ | 292,437,930 | ||||
Fair Value Other/Structured finance securities (amortized cost of $3,531,218 and $3,531,218, respectively) | 33,902 | 22,718 | ||||||
|
|
|
| |||||
Total investments at fair value (amortized cost of $300,101,725 and $297,801,502, respectively) | 294,713,104 | 292,460,648 | ||||||
Cash and cash equivalents | 7,039,670 | 13,046,555 | ||||||
Receivable from open trades | 7,927,175 | 1,505,000 | ||||||
Interest receivable | 1,337,584 | 1,443,865 | ||||||
Other assets | - | 6,049 | ||||||
|
|
|
| |||||
Total assets | $ | 311,017,533 | $ | 308,462,117 | ||||
|
|
|
| |||||
LIABILITIES | ||||||||
Interest payable | $ | 1,084,119 | $ | 1,031,457 | ||||
Payable from open trades | 11,603,306 | 9,431,552 | ||||||
Accrued base management fee | 34,238 | 34,221 | ||||||
Accrued subordinated management fee | 136,951 | 136,885 | ||||||
Accrued incentive fee | 105,295 | - | ||||||
Class A-1 Notes - SIC CLO 2013-1, Ltd. | 170,000,000 | 170,000,000 | ||||||
Class A-2 Notes - SIC CLO 2013-1, Ltd. | 20,000,000 | 20,000,000 | ||||||
Class B Notes - SIC CLO 2013-1, Ltd. | 44,800,000 | 44,800,000 | ||||||
Class C Notes - SIC CLO 2013-1, Ltd. | 16,000,000 | 16,000,000 | ||||||
Discount on Class C Notes - SIC CLO 2013-1, Ltd. | (75,111 | ) | (77,383 | ) | ||||
Class D Notes - SIC CLO 2013-1, Ltd. | 14,000,000 | 14,000,000 | ||||||
Discount on Class D Notes - SIC CLO 2013-1, Ltd. | (348,703 | ) | (359,249 | ) | ||||
Class E Notes - SIC CLO 2013-1, Ltd. | 13,100,000 | 13,100,000 | ||||||
Class F Notes - SIC CLO 2013-1, Ltd. | 4,500,000 | 4,500,000 | ||||||
Deferred debt financing costs, SIC CLO 2013-1, Ltd. Notes | (1,108,709 | ) | (1,161,590 | ) | ||||
Subordinated Notes | 30,000,000 | 30,000,000 | ||||||
|
|
|
| |||||
Total liabilities | $ | 323,831,386 | $ | 321,435,893 | ||||
|
|
|
| |||||
Commitments and contingencies | ||||||||
NET ASSETS | ||||||||
Ordinary equity, par value $1.00, 250 ordinary shares authorized, 250 and 250 issued and outstanding, respectively | $ | 250 | $ | 250 | ||||
Accumulated loss | (12,974,026 | ) | (21,557,618 | ) | ||||
Net gain | 159,923 | 8,583,592 | ||||||
|
|
|
| |||||
Total net assets | (12,813,853 | ) | (12,973,776 | ) | ||||
|
|
|
| |||||
Total liabilities and net assets | $ | 311,017,533 | $ | 308,462,117 | ||||
|
|
|
| |||||
20
Saratoga Investment Corp. CLO 2013-1, Ltd.
Statements of Operations
(unaudited)
| For the three months ended May 31 | ||||||||
| 2017 | 2016 | |||||||
INVESTMENT INCOME | ||||||||
Interest from investments | $ | 3,977,871 | $ | 3,788,336 | ||||
Interest from cash and cash equivalents | 5,083 | 771 | ||||||
Other income | 160,614 | 243,301 | ||||||
|
|
|
| |||||
Total investment income | 4,143,568 | 4,032,408 | ||||||
|
|
|
| |||||
EXPENSES | ||||||||
Interest expense | 3,623,558 | 3,281,015 | ||||||
Professional fees | 34,551 | 18,482 | ||||||
Miscellaneous fee expense | 10,126 | 8,244 | ||||||
Base management fee | 75,136 | 186,842 | ||||||
Subordinated management fee | 300,545 | 186,842 | ||||||
Incentive fees | 105,295 | - | ||||||
Trustee expenses | 36,168 | 26,688 | ||||||
Amortization expense | 44,357 | 239,963 | ||||||
|
|
|
| |||||
Total expenses | 4,229,736 | 3,948,076 | ||||||
|
|
|
| |||||
NET INVESTMENT INCOME (LOSS) | (86,168 | ) | 84,332 | |||||
|
|
|
| |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
Net realized gain on investments | 293,858 | 55,562 | ||||||
Net unrealized appreciation (depreciation) on investments | (47,767 | ) | 9,320,673 | |||||
|
|
|
| |||||
Net gain on investments | 246,091 | 9,376,235 | ||||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 159,923 | $ | 9,460,567 | ||||
|
|
|
| |||||
21
Saratoga Investment Corp. CLO 2013-1 Ltd.
Schedule of Investments
May 31, 2017
(unaudited)
Issuer Name | Industry | Asset Name | Asset Type | Spread | LIBOR Floor | PIK | Current Rate (All In) | Maturity Date | Principal/ Number of Shares | Cost | Fair Value | |||||||||||||||||||||||||||
Education Management II, LLC | Leisure Goods/Activities/Movies | A-1 Preferred Shares | Equity | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 6,692 | $ | 669,214 | $ | 13,384 | ||||||||||||||||||||||
Education Management II, LLC | Leisure Goods/Activities/Movies | A-2 Preferred Shares | Equity | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 18,975 | 1,897,538 | 76 | ||||||||||||||||||||||||
New Millennium Holdco, Inc. | Healthcare & Pharmaceuticals | Common Stock | Equity | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 14,813 | 964,466 | 20,442 | ||||||||||||||||||||||||
24 Hour Holdings III, LLC | Leisure Goods/Activities/Movies | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.90 | % | 5/28/2021 | $ | 486,250 | 483,268 | 483,211 | ||||||||||||||||||||||
ABB Con-Cise Optical Group, LLC | Healthcare & Pharmaceuticals | Term Loan B | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.10 | % | 6/15/2023 | $ | 1,990,000 | 1,970,291 | 2,007,413 | ||||||||||||||||||||||
Acosta Holdco, Inc. | Media | Term Loan B1 | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.29 | % | 9/26/2021 | $ | 1,940,025 | 1,929,835 | 1,806,997 | ||||||||||||||||||||||
Advantage Sales & Marketing, Inc. | Services: Business | Delayed Draw Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.29 | % | 7/25/2021 | $ | 2,439,950 | 2,437,594 | 2,412,061 | ||||||||||||||||||||||
Aegis Toxicology Science Corporation | Healthcare & Pharmaceuticals | Term B Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.66 | % | 2/24/2021 | $ | 2,457,233 | 2,337,953 | 2,440,843 | ||||||||||||||||||||||
Agrofresh, Inc. | Food Services | Term Loan | Loan | 4.75 | % | 1.00 | % | 0.00 | % | 5.90 | % | 7/30/2021 | $ | 1,965,000 | 1,957,975 | 1,953,957 | ||||||||||||||||||||||
AI MISTRAL T/L (V. GROUP) | Utilities | Term Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.18 | % | 3/11/2024 | $ | 500,000 | 500,000 | 499,375 | ||||||||||||||||||||||
Akorn, Inc. | Healthcare & Pharmaceuticals | Term Loan B | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.31 | % | 4/16/2021 | $ | 398,056 | 397,016 | 402,534 | ||||||||||||||||||||||
Albertson's LLC | Retailers (Except Food and Drugs) | Term Loan B-4 | Loan | 3.00 | % | 0.75 | % | 0.00 | % | 4.04 | % | 8/25/2021 | $ | 2,888,953 | 2,873,134 | 2,904,120 | ||||||||||||||||||||||
Alere Inc. (fka IM US Holdings, LLC) | Healthcare & Pharmaceuticals | Term Loan B | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.30 | % | 6/20/2022 | $ | 915,616 | 913,895 | 919,050 | ||||||||||||||||||||||
Alion Science and Technology Corporation | High Tech Industries | Term Loan B (First Lien) | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.54 | % | 8/19/2021 | $ | 2,947,500 | 2,936,726 | 2,945,054 | ||||||||||||||||||||||
Alliance Healthcare Services, Inc. | Healthcare & Pharmaceuticals | Term Loan B | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.36 | % | 6/3/2019 | $ | 981,997 | 978,851 | 979,542 | ||||||||||||||||||||||
ALPHA 3 T/L B1 (ATOTECH) | Chemicals/Plastics | Term Loan B 1 | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.15 | % | 1/31/2024 | $ | 250,000 | 249,380 | 251,173 | ||||||||||||||||||||||
Almonde, Inc. (Misys) | High Tech Industries | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 4/26/2024 | $ | 1,000,000 | 995,000 | 1,001,920 | ||||||||||||||||||||||
Anchor Glass T/L (11/16) | Containers/Glass Products | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 12/7/2023 | $ | 498,750 | 496,452 | 502,047 | ||||||||||||||||||||||
APCO Holdings, Inc. | Automotive | Term Loan | Loan | 6.00 | % | 1.00 | % | 0.00 | % | 7.00 | % | 1/31/2022 | $ | 1,896,081 | 1,851,847 | 1,848,679 | ||||||||||||||||||||||
Aramark Corporation | Food Products | U.S. Term F Loan | Loan | 2.00 | % | 0.00 | % | 0.00 | % | 3.05 | % | 3/28/2024 | $ | 2,000,000 | 2,000,000 | 2,013,120 | ||||||||||||||||||||||
Arctic Glacier U.S.A., Inc. | Beverage, Food & Tobacco | Term Loan B | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.30 | % | 3/20/2024 | $ | 500,000 | 497,543 | 505,940 | ||||||||||||||||||||||
Aspen Dental Management, Inc. | Healthcare & Pharmaceuticals | Term Loan Initial | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.92 | % | 4/29/2022 | $ | 1,979,905 | 1,975,830 | 1,998,477 | ||||||||||||||||||||||
Astoria Energy T/L B | Utilities | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.15 | % | 12/24/2021 | $ | 1,495,307 | 1,480,752 | 1,491,569 | ||||||||||||||||||||||
Asurion, LLC (fka Asurion Corporation) | Insurance | Replacement Term Loan B-2 | Loan | 3.25 | % | 0.75 | % | 0.00 | % | 4.29 | % | 7/8/2020 | $ | 522,122 | 518,066 | 525,495 | ||||||||||||||||||||||
Asurion, LLC (fka Asurion Corporation) | Insurance | Term Loan B4 (First Lien) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.29 | % | 8/4/2022 | $ | 2,391,773 | 2,380,910 | 2,405,430 | ||||||||||||||||||||||
Auction.com, LLC | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.05 | % | 5/13/2019 | $ | 2,711,717 | 2,711,519 | 2,728,665 | ||||||||||||||||||||||
Avantor Performance Materials Holdings, Inc. | Chemicals/Plastics | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.05 | % | 3/8/2024 | $ | 3,000,000 | 2,992,568 | 3,006,000 | ||||||||||||||||||||||
AVOLON TLB BORROWER 1 LUXEMBOURG S.A.R.L. | Capital Equipment | Term Loan B-2 | Loan | 2.75 | % | 0.75 | % | 0.00 | % | 3.76 | % | 3/20/2022 | $ | 1,000,000 | 995,342 | 1,012,430 | ||||||||||||||||||||||
Bass Pro Group, LLC | Retailers (Except Food and Drugs) | Term Loan | Loan | 3.25 | % | 0.75 | % | 0.00 | % | 4.24 | % | 6/5/2020 | $ | 1,470,000 | 1,468,053 | 1,468,163 | ||||||||||||||||||||||
Belmond Interfin Ltd. | Lodging & Casinos | Term Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.15 | % | 3/19/2021 | $ | 2,473,003 | 2,476,208 | 2,476,094 | ||||||||||||||||||||||
Blackboard T/L B4 | High Tech Industries | Term Loan B4 | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.16 | % | 6/30/2021 | $ | 2,985,000 | 2,963,237 | 2,990,612 | ||||||||||||||||||||||
Blucora, Inc. | High Tech Industries | Term Loan B | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.76 | % | 5/22/2024 | $ | 1,000,000 | 995,075 | 1,007,500 | ||||||||||||||||||||||
BMC Software | Technology | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.16 | % | 9/12/2022 | $ | 1,946,210 | 1,888,314 | 1,947,436 | ||||||||||||||||||||||
BMC Software T/L US | Technology | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.16 | % | 9/12/2022 | $ | 588,449 | 578,390 | 591,056 | ||||||||||||||||||||||
Brickman Group Holdings, Inc. | Brokers/Dealers/Investment Houses | Initial Term Loan (First Lien) | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.04 | % | 12/18/2020 | $ | 1,431,702 | 1,421,385 | 1,432,246 | ||||||||||||||||||||||
BWAY Holding Company | Leisure Goods/Activities/Movies | Term Loan B | Loan | 3.25 | % | 0.00 | % | 0.00 | % | 4.25 | % | 4/3/2024 | $ | 1,000,000 | 995,071 | 998,540 | ||||||||||||||||||||||
Cable One, Inc. | Telecommunications | Term Loan B | Loan | 2.25 | % | 1.00 | % | 0.00 | % | 3.43 | % | 5/1/2024 | $ | 500,000 | 499,375 | 503,125 | ||||||||||||||||||||||
Candy Intermediate Holdings, Inc. | Beverage, Food & Tobacco | Term Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.65 | % | 6/15/2023 | $ | 496,250 | 494,152 | 470,197 | ||||||||||||||||||||||
Capital Automotive L.P. | Conglomerate | Tranche B-1 Term Loan Facility | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.03 | % | 3/25/2024 | $ | 500,000 | 497,547 | 503,905 | ||||||||||||||||||||||
Caraustar Industries Inc. | Forest Products & Paper | Term Loan B | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.65 | % | 3/14/2022 | $ | 500,000 | 498,761 | 501,625 | ||||||||||||||||||||||
CASA SYSTEMS T/L | Telecommunications | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.04 | % | 12/20/2023 | $ | 1,496,250 | 1,482,060 | 1,499,991 | ||||||||||||||||||||||
Catalent Pharma Solutions, Inc | Drugs | Initial Term B Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.79 | % | 5/20/2021 | $ | 423,560 | 422,273 | 427,854 | ||||||||||||||||||||||
Cengage Learning Acquisitions, Inc. | Publishing | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 6/7/2023 | $ | 1,488,750 | 1,473,865 | 1,401,107 | ||||||||||||||||||||||
CH HOLD (CALIBER COLLISION) T/L | Automotive | Term Loan | Loan | 3.00 | % | 0.00 | % | 0.00 | % | 4.04 | % | 2/1/2024 | $ | 227,273 | 226,761 | 228,789 | ||||||||||||||||||||||
Charter Communications Operating, LLC | Cable and Satellite Television | Term F Loan | Loan | 2.00 | % | 0.00 | % | 0.00 | % | 3.05 | % | 1/3/2021 | $ | 1,605,364 | 1,599,826 | 1,614,193 | ||||||||||||||||||||||
CHS/Community Health Systems, Inc. | Healthcare & Pharmaceuticals | Term G Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.95 | % | 12/31/2019 | $ | 922,719 | 901,552 | 923,181 | ||||||||||||||||||||||
CHS/Community Health Systems, Inc. | Healthcare & Pharmaceuticals | Term H Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.20 | % | 1/27/2021 | $ | 1,697,791 | 1,644,603 | 1,697,859 | ||||||||||||||||||||||
CITGO Petroleum Corporation | Oil & Gas | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.65 | % | 7/29/2021 | $ | 1,959,849 | 1,942,358 | 1,960,338 | ||||||||||||||||||||||
Communications Sales & Leasing, Inc. | Telecommunications | Term Loan B (First Lien) | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.04 | % | 10/24/2022 | $ | 1,965,137 | 1,954,120 | 1,974,609 | ||||||||||||||||||||||
Concordia Healthcare Corporation | Healthcare & Pharmaceuticals | Term Loan B | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.28 | % | 10/21/2021 | $ | 1,967,500 | 1,883,686 | 1,421,519 | ||||||||||||||||||||||
Consolidated Aerospace Manufacturing, LLC | Aerospace and Defense | Term Loan (First Lien) | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.80 | % | 8/11/2022 | $ | 1,418,750 | 1,413,095 | 1,369,094 | ||||||||||||||||||||||
Consolidated Communications, Inc. | Telecommunications | Term Loan B-2 | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 10/5/2023 | $ | 500,000 | 497,500 | 502,395 | ||||||||||||||||||||||
CPI Acquisition Inc. | Technology | Term Loan B (First Lien) | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.83 | % | 8/17/2022 | $ | 1,436,782 | 1,419,495 | 1,250,000 | ||||||||||||||||||||||
CPI International Acquisition, Inc. (f/k/a Catalyst Holdings, Inc.) | Electronics/Electric | Term B Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.30 | % | 4/7/2021 | $ | 2,462,342 | 2,461,788 | 2,462,342 | ||||||||||||||||||||||
Crosby US Acquisition Corporation | Industrial Equipment | Initial Term Loan (First Lien) | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.17 | % | 11/23/2020 | $ | 725,625 | 725,152 | 661,044 | ||||||||||||||||||||||
CT Technologies Intermediate Hldgs, Inc | Healthcare & Pharmaceuticals | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.29 | % | 12/1/2021 | $ | 1,466,381 | 1,455,744 | 1,449,884 | ||||||||||||||||||||||
Cypress Intermediate Holdings III, Inc. | Services: Business | Term Loan B | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.04 | % | 4/29/2024 | $ | 500,000 | 498,776 | 498,500 | ||||||||||||||||||||||
Culligan International Company-T/L | Conglomerate | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 12/13/2023 | $ | 2,044,875 | 2,045,149 | 2,056,388 | ||||||||||||||||||||||
Cumulus Media Holdings Inc. | Broadcast Radio and Television | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.30 | % | 12/23/2020 | $ | 470,093 | 467,518 | 372,548 | ||||||||||||||||||||||
DAE Aviation (StandardAero) | Aerospace and Defense | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.79 | % | 7/7/2022 | $ | 2,470,000 | 2,460,059 | 2,488,525 | ||||||||||||||||||||||
DASEKE T/L (HENNESSY CAPITAL) | Transportation | Term Loan | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.54 | % | 2/27/2024 | $ | 827,143 | 820,224 | 832,313 | ||||||||||||||||||||||
DCS Business Services, Inc. | Financial Intermediaries | Term B Loan | Loan | 7.25 | % | 1.50 | % | 0.00 | % | 8.75 | % | 3/19/2018 | $ | 1,782,727 | 1,778,648 | 1,782,727 | ||||||||||||||||||||||
Delta 2 (Lux) S.a.r.l. | Lodging & Casinos | Term Loan B-3 | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.57 | % | 2/1/2024 | $ | 1,000,000 | 996,775 | 1,000,680 | ||||||||||||||||||||||
DELL INTERNATIONAL 1ST LIEN T/L | High Tech Industries | Term Loan (01/17) | Loan | 2.50 | % | 0.75 | % | 0.00 | % | 3.55 | % | 9/7/2023 | $ | 997,500 | 996,476 | 1,003,146 | ||||||||||||||||||||||
Deluxe Entertainment Service Group, Inc. | Leisure Goods/Activities/Movies | Term Loan (First Lien) | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.62 | % | 2/28/2020 | $ | 2,849,297 | 2,821,745 | 2,845,735 | ||||||||||||||||||||||
DEX MEDIA, INC. | Media | Term Loan (07/16) | Loan | 10.00 | % | 1.00 | % | 0.00 | % | 11.04 | % | 7/29/2021 | $ | 35,702 | 35,702 | 36,505 | ||||||||||||||||||||||
DIGITALGLOBE T/L B (12/16) | Aerospace and Defense | Term Loan B | Loan | 2.75 | % | 0.75 | % | 0.00 | % | 3.79 | % | 1/15/2024 | $ | 498,750 | 497,631 | 499,373 | ||||||||||||||||||||||
DJO Finance, LLC | Healthcare & Pharmaceuticals | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 6/8/2020 | $ | 491,250 | 489,802 | 485,601 | ||||||||||||||||||||||
Dole Food Company, Inc. | Beverage, Food & Tobacco | Term Loan B | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.18 | % | 4/8/2024 | $ | 500,000 | 497,548 | 501,965 | ||||||||||||||||||||||
DPX Holdings B.V. | Healthcare & Pharmaceuticals | Term Loan 2015 Incr Dollar | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.41 | % | 4/22/2024 | $ | 2,917,500 | 2,912,750 | 2,929,170 | ||||||||||||||||||||||
Drew Marine Group, Inc. | Chemicals/Plastics | Term Loan (First Lien) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.40 | % | 11/19/2020 | $ | 2,863,470 | 2,839,806 | 2,852,731 | ||||||||||||||||||||||
DTZ U.S. Borrower, LLC | Construction & Building | Term Loan B Add-on | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.40 | % | 11/4/2021 | $ | 1,957,576 | 1,948,917 | 1,962,019 | ||||||||||||||||||||||
DUKE FINANCE (OM GROUP/VECTRA) T/L | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.15 | % | 2/21/2024 | $ | 1,500,000 | 1,399,164 | 1,514,370 | ||||||||||||||||||||||
Edelman Financial Group, Inc. | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.66 | % | 12/19/2022 | $ | 1,474,728 | 1,450,390 | 1,475,952 | ||||||||||||||||||||||
Education Management II, LLC | Leisure Goods/Activities/Movies | Term Loan A | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.66 | % | 7/2/2020 | $ | 501,970 | 489,732 | 221,494 | ||||||||||||||||||||||
Education Management II, LLC | Leisure Goods/Activities/Movies | Term Loan B (2.00% Cash/6.50% PIK) | Loan | 1.00 | % | 1.00 | % | 6.50 | % | 8.66 | % | 7/2/2020 | $ | 954,307 | 935,402 | 11,929 | ||||||||||||||||||||||
Emerald Performance Materials, LLC | Chemicals/Plastics | Term Loan (First Lien) | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.54 | % | 8/1/2021 | $ | 480,602 | 479,081 | 485,009 | ||||||||||||||||||||||
Emerald Performance Materials, LLC | Chemicals/Plastics | Term Loan (Second Lien) | Loan | 7.75 | % | 1.00 | % | 0.00 | % | 8.79 | % | 8/1/2022 | $ | 500,000 | 498,224 | 498,595 | ||||||||||||||||||||||
Emerald 2 Limited | Chemicals/Plastics | Term Loan B1A | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.15 | % | 5/14/2021 | $ | 1,000,000 | 993,241 | 948,330 | ||||||||||||||||||||||
Endo International plc | Healthcare & Pharmaceuticals | Term Loan B | Loan | 4.25 | % | 0.75 | % | 0.00 | % | 5.31 | % | 4/29/2024 | $ | 1,000,000 | 995,089 | 1,016,880 | ||||||||||||||||||||||
Engility Corporation | Aerospace and Defense | Term Loan B-1 | Loan | 3.25 | % | 0.00 | % | 0.00 | % | 4.29 | % | 8/12/2020 | $ | 237,500 | 236,554 | 239,222 | ||||||||||||||||||||||
Equian, LLC | Services: Business | Term Loan B | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.93 | % | 5/20/2024 | $ | 1,529,412 | 1,519,428 | 1,533,235 | ||||||||||||||||||||||
Evergreen Acqco 1 LP | Retailers (Except Food and Drugs) | New Term Loan | Loan | 3.75 | % | 1.25 | % | 0.00 | % | 5.00 | % | 7/9/2019 | $ | 952,613 | 951,841 | 869,259 | ||||||||||||||||||||||
EWT Holdings III Corp. (fka WTG Holdings III Corp.) | Industrial Equipment | Term Loan (First Lien) | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.90 | % | 1/15/2021 | $ | 1,942,311 | 1,939,288 | 1,949,595 | ||||||||||||||||||||||
EWT Holdings III Corp. | Capital Equipment | Term Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.65 | % | 1/15/2021 | $ | 990,000 | 982,363 | 996,188 | ||||||||||||||||||||||
Extreme Reach, Inc. | Media | Term Loan B | Loan | 6.25 | % | 1.00 | % | 0.00 | % | 7.30 | % | 2/7/2020 | $ | 2,831,250 | 2,806,680 | 2,873,719 | ||||||||||||||||||||||
Federal-Mogul Corporation | Automotive | Tranche C Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 4/15/2021 | $ | 2,917,500 | 2,906,685 | 2,926,369 | ||||||||||||||||||||||
First Data Corporation | Financial Intermediaries | First Data T/L Ext (2021) | Loan | 2.50 | % | 0.00 | % | 0.00 | % | 3.53 | % | 4/26/2024 | $ | 1,886,914 | 1,809,171 | 1,896,651 | ||||||||||||||||||||||
First Eagle Investment Management | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 3.50 | % | 0.75 | % | 0.00 | % | 4.66 | % | 12/1/2022 | $ | 2,481,250 | 2,452,109 | 2,512,266 | ||||||||||||||||||||||
Fitness International, LLC | Leisure Goods/Activities/Movies | Term Loan B | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.40 | % | 7/1/2020 | $ | 1,624,755 | 1,604,627 | 1,643,716 | ||||||||||||||||||||||
Gardner Denver, Inc. | High Tech Industries | Initial Dollar Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.57 | % | 7/30/2020 | $ | 2,054,505 | 2,051,123 | 2,058,614 | ||||||||||||||||||||||
Gates Global LLC | Leisure Goods/Activities/Movies | Term Loan (First Lien) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.41 | % | 4/1/2024 | $ | 349,886 | 346,468 | 351,233 | ||||||||||||||||||||||
General Nutrition Centers, Inc. | Retailers (Except Food and Drugs) | Amended Tranche B Term Loan | Loan | 2.50 | % | 0.75 | % | 0.00 | % | 3.55 | % | 3/4/2019 | $ | 2,047,169 | 2,044,152 | 1,841,715 | ||||||||||||||||||||||
GLOBALLOGIC HOLDINGS INC TERM LOAN B | Services: Business | Term Loan B | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.65 | % | 6/20/2022 | $ | 500,000 | 495,340 | 503,125 | ||||||||||||||||||||||
Global Tel*Link Corporation | Services: Business | Term Loan (First Lien) | Loan | 3.75 | % | 1.25 | % | 0.00 | % | 5.00 | % | 5/26/2020 | $ | 2,641,595 | 2,635,582 | 2,640,486 | ||||||||||||||||||||||
Goodyear Tire & Rubber Company, The | Chemicals/Plastics | Loan (Second Lien) | Loan | 2.00 | % | 0.00 | % | 0.00 | % | 3.00 | % | 4/30/2019 | $ | 1,833,333 | 1,822,047 | 1,844,792 | ||||||||||||||||||||||
Grosvenor Capital Management Holdings, LP | Brokers/Dealers/Investment Houses | Initial Term Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.04 | % | 8/18/2023 | $ | 1,000,000 | 995,091 | 1,002,500 | ||||||||||||||||||||||
GTCR Valor Companies, Inc. | Services: Business | Term Loan B | Loan | 6.00 | % | 1.00 | % | 0.00 | % | 7.15 | % | 6/16/2023 | $ | 1,488,751 | 1,434,934 | 1,498,800 | ||||||||||||||||||||||
Harland Clarke Holdings Corp. (fka Clarke American Corp.) | Publishing | Tranche B-4 Term Loan | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.65 | % | 2/9/2022 | $ | 2,162,357 | 2,105,279 | 2,160,195 | ||||||||||||||||||||||
Hargray Communications Group, Inc. | Media | Term Loan B | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.03 | % | 2/9/2022 | $ | 1,000,000 | 997,509 | 1,001,500 | ||||||||||||||||||||||
Helix Gen Funding, LLC | Utilities | Term Loan B | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.96 | % | 5/3/2024 | $ | 479,104 | 476,709 | 479,104 | ||||||||||||||||||||||
Highline Aftermarket Acquisition, LLC | Automotive | Term Loan B | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.31 | % | 3/15/2024 | $ | 1,000,000 | 995,000 | 1,005,000 | ||||||||||||||||||||||
Help/Systems Holdings, Inc. | High Tech Industries | Term Loan | Loan | 5.25 | % | 1.00 | % | 0.00 | % | 6.40 | % | 10/8/2021 | $ | 1,481,250 | 1,432,668 | 1,482,479 | ||||||||||||||||||||||
Hemisphere Media Holdings, LLC | Media | Term Loan B | Loan | 3.50 | % | 0.00 | % | 0.00 | % | 4.54 | % | 2/14/2024 | $ | 2,493,750 | 2,506,145 | 2,496,867 | ||||||||||||||||||||||
Herbalife T/L B (HLF Financing) | Drugs | Term Loan B | Loan | 5.50 | % | 0.75 | % | 0.00 | % | 6.54 | % | 2/15/2023 | $ | 2,000,000 | 1,985,640 | 2,010,840 | ||||||||||||||||||||||
Hercules Achievement Holdings, Inc. | Retailers (Except Food and Drugs) | Term Loan B | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 12/10/2021 | $ | 246,222 | 244,291 | 247,497 | ||||||||||||||||||||||
Hoffmaster Group, Inc. | Containers/Glass Products | Term Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.54 | % | 11/21/2023 | $ | 997,500 | 1,001,241 | 1,008,722 | ||||||||||||||||||||||
Hostess Brand, LLC | Beverage, Food & Tobacco | Term Loan B (First Lien) | Loan | 2.50 | % | 0.75 | % | 0.00 | % | 3.54 | % | 8/3/2022 | $ | 1,486,275 | 1,482,559 | 1,496,619 | ||||||||||||||||||||||
HUB International Limited | Banking, Finance, Insurance & Real Estate | Term Loan B | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.42 | % | 10/2/2022 | $ | 748,072 | 748,072 | 751,932 | ||||||||||||||||||||||
Huntsman International LLC | Chemicals/Plastics | Term Loan B (First Lien) | Loan | 3.00 | % | 0.70 | % | 0.00 | % | 4.04 | % | 4/19/2019 | $ | 1,021,487 | 1,017,292 | 1,027,023 | ||||||||||||||||||||||
Husky Injection Molding Systems Ltd. | Services: Business | Term Loan B | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.29 | % | 6/30/2021 | $ | 449,208 | 447,231 | 452,690 | ||||||||||||||||||||||
Hyland Software, Inc. | High Tech Industries | Term Loan B | Loan | 3.25 | % | 0.75 | % | 0.00 | % | 4.00 | % | 7/1/2022 | $ | 1,000,000 | 997,500 | 1,000,000 | ||||||||||||||||||||||
Hyperion Refinance T/L | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.06 | % | 4/29/2022 | $ | 1,881,998 | 1,859,264 | 1,881,998 | ||||||||||||||||||||||
ICSH Parent, Inc. | Containers/Glass Products | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.18 | % | 4/29/2024 | $ | 847,059 | 842,847 | 844,941 | ||||||||||||||||||||||
IG Investments Holdings, LLC | Services: Business | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.08 | % | 10/29/2021 | $ | 3,441,142 | 3,425,616 | 3,466,950 | ||||||||||||||||||||||
Imagine! Print Solutions, Inc. | Media | Term Loan B | Loan | 6.00 | % | 1.00 | % | 0.00 | % | 7.15 | % | 3/30/2022 | $ | 495,000 | 488,876 | 495,619 | ||||||||||||||||||||||
Infor US (Lawson) T/L B-6 | Services: Business | Term Loan B-6 | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.90 | % | 2/1/2022 | $ | 1,609,802 | 1,596,120 | 1,605,986 | ||||||||||||||||||||||
Informatica Corporation | High Tech Industries | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.65 | % | 8/5/2022 | $ | 485,671 | 484,711 | 485,215 | ||||||||||||||||||||||
Inmar, Inc. | Services: Business | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.67 | % | 5/1/2024 | $ | 500,000 | 495,040 | 500,625 | ||||||||||||||||||||||
ION Media T/L B | Media | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 12/18/2020 | $ | 500,000 | 497,761 | 505,000 | ||||||||||||||||||||||
J. Crew Group, Inc. | Retailers (Except Food and Drugs) | Term B-1 Loan Retired 03/05/2014 | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 3/5/2021 | $ | 943,325 | 943,325 | 642,131 | ||||||||||||||||||||||
Jazz Acquisition, Inc | Aerospace and Defense | First Lien 6/14 | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.65 | % | 6/19/2021 | $ | 486,667 | 485,937 | 472,067 | ||||||||||||||||||||||
J.Jill Group, Inc. | Retailers (Except Food and Drugs) | Term Loan (First Lien) | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.18 | % | 5/9/2022 | $ | 948,238 | 944,632 | 923,745 | ||||||||||||||||||||||
Kinetic Concepts, Inc. | Healthcare & Pharmaceuticals | Term Loan F-1 | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.40 | % | 2/2/2024 | $ | 2,400,000 | 2,389,073 | 2,366,256 | ||||||||||||||||||||||
Koosharem, LLC | Services: Business | Term Loan | Loan | 6.50 | % | 1.00 | % | 0.00 | % | 7.54 | % | 5/15/2020 | $ | 2,927,613 | 2,911,567 | 2,710,969 | ||||||||||||||||||||||
Kraton Polymers, LLC | Chemicals/Plastics | Term Loan (Initial) | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.05 | % | 1/6/2022 | $ | 1,733,177 | 1,592,433 | 1,754,703 | ||||||||||||||||||||||
Lannett Company T/L A | Healthcare & Pharmaceuticals | Term Loan A | Loan | 4.75 | % | 1.00 | % | 0.00 | % | 5.79 | % | 11/25/2020 | $ | 986,842 | 959,754 | 976,974 | ||||||||||||||||||||||
Lannett Company, Inc. | Healthcare & Pharmaceuticals | Term Loan B | Loan | 5.38 | % | 1.00 | % | 0.00 | % | 6.42 | % | 11/25/2022 | $ | 1,875,000 | 1,820,609 | 1,860,938 | ||||||||||||||||||||||
LEARFIELD COMMUNICATIONS INITIAL T/L (A-L PARENT) | Healthcare & Pharmaceuticals | Initial Term Loan (A-L Parent) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.30 | % | 12/1/2023 | $ | 498,750 | 496,523 | 504,361 | ||||||||||||||||||||||
Lightstone Generation T/L B | Utilities | Term Loan B | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.54 | % | 1/30/2024 | $ | 57,971 | 56,838 | 56,667 | ||||||||||||||||||||||
Lightstone Generation T/L C | Utilities | Term Loan C | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.54 | % | 1/30/2024 | $ | 939,674 | 921,338 | 918,531 | ||||||||||||||||||||||
Limetree Bay Terminals T/L (01/17) | Oil & Gas | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.00 | % | 2/15/2024 | $ | 500,000 | 495,258 | 504,375 | ||||||||||||||||||||||
LPL Holdings | Banking, Finance, Insurance & Real Estate | Term Loan B (2022) | Loan | 2.50 | % | 0.00 | % | 0.00 | % | 3.61 | % | 3/11/2024 | $ | 1,750,000 | 1,745,678 | 1,757,665 | ||||||||||||||||||||||
McGraw-Hill Global Education Holdings, LLC | Publishing | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.04 | % | 5/4/2022 | $ | 992,500 | 988,527 | 980,878 | ||||||||||||||||||||||
MHVC Acquisition Corp. | Aerospace and Defense | Term Loan | Loan | 5.25 | % | 1.00 | % | 0.00 | % | 6.30 | % | 4/29/2024 | $ | 2,000,000 | 1,990,154 | 2,013,760 | ||||||||||||||||||||||
Michaels Stores, Inc. | Retailers (Except Food and Drugs) | Term Loan B1 | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.79 | % | 1/30/2023 | $ | 1,675,147 | 1,669,900 | 1,673,053 | ||||||||||||||||||||||
Micro Holding Corporation | High Tech Industries | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.79 | % | 7/8/2021 | $ | 322,700 | 321,911 | 325,524 | ||||||||||||||||||||||
Micro Holding Corporation | High Tech Industries | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.79 | % | 7/8/2021 | $ | 979,860 | 976,399 | 988,130 | ||||||||||||||||||||||
Microsemi Corporation | Electronics/Electric | Term Loan B | Loan | 2.25 | % | 0.00 | % | 0.00 | % | 3.33 | % | 1/17/2023 | $ | 829,180 | 808,580 | 832,173 | ||||||||||||||||||||||
Midas Intermediate Holdco II, LLC | Automotive | Term Loan (Initial) | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.90 | % | 8/18/2021 | $ | 243,764 | 242,937 | 244,373 | ||||||||||||||||||||||
Milacron T/L B | Capital Equipment | Term Loan B | Loan | 3.00 | % | 0.00 | % | 0.00 | % | 4.04 | % | 9/28/2023 | $ | 997,500 | 994,134 | 999,994 | ||||||||||||||||||||||
Milk Specialties Company | Beverage, Food & Tobacco | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.15 | % | 8/16/2023 | $ | 995,000 | 985,645 | 1,002,463 | ||||||||||||||||||||||
Mister Car Wash T/L | Automotive | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.30 | % | 8/20/2021 | $ | 1,495,312 | 1,489,711 | 1,497,182 | ||||||||||||||||||||||
MWI Holdings, Inc. | Capital Equipment | Term Loan (First Lien) | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.65 | % | 6/29/2020 | $ | 2,977,500 | 2,951,521 | 2,999,831 | ||||||||||||||||||||||
National Vision, Inc. | Retailers (Except Food and Drugs) | Term Loan (Second Lien) | Loan | 5.75 | % | 1.00 | % | 0.00 | % | 6.79 | % | 3/11/2022 | $ | 250,000 | 249,802 | 242,813 | ||||||||||||||||||||||
New Media Holdings II T/L (NEW) | Retailers (Except Food and Drugs) | Term Loan | Loan | 6.25 | % | 1.00 | % | 0.00 | % | 7.29 | % | 6/4/2020 | $ | 3,160,034 | 3,147,716 | 3,136,334 | ||||||||||||||||||||||
New Millennium Holdco, Inc. | Healthcare & Pharmaceuticals | Term Loan | Loan | 6.50 | % | 1.00 | % | 0.00 | % | 7.54 | % | 12/21/2020 | $ | 1,925,088 | 1,784,595 | 1,138,208 | ||||||||||||||||||||||
Novetta Solutions | Aerospace and Defense | Term Loan (200MM) | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.15 | % | 10/16/2022 | $ | 1,975,000 | 1,959,035 | 1,881,188 | ||||||||||||||||||||||
Novetta Solutions | Aerospace and Defense | Term Loan (2nd Lien) | Loan | 8.50 | % | 1.00 | % | 0.00 | % | 9.50 | % | 10/16/2023 | $ | 1,000,000 | 991,479 | 941,250 | ||||||||||||||||||||||
NPC International, Inc. | Food Services | Term Loan (2013) | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.51 | % | 4/19/2024 | $ | 500,000 | 499,408 | 503,335 | ||||||||||||||||||||||
NVA Holdings (National Veterinary) T/L B2 | Services: Consumer | Term Loan B2 | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.65 | % | 8/14/2021 | $ | 1,261,425 | 1,256,849 | 1,275,616 | ||||||||||||||||||||||
NXT Capital T/L (11/16) | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.65 | % | 11/23/2022 | $ | 1,247,500 | 1,242,663 | 1,264,653 | ||||||||||||||||||||||
Onex Carestream Finance LP | Healthcare & Pharmaceuticals | Term Loan (First Lien 2013) | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.15 | % | 6/7/2019 | $ | 3,558,804 | 3,552,314 | 3,475,777 | ||||||||||||||||||||||
OnexYork Acquisition Co | Healthcare & Pharmaceuticals | Term Loan B | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.90 | % | 10/1/2021 | $ | 487,500 | 485,121 | 476,044 | ||||||||||||||||||||||
OpenLink International, LLC | Services: Business | Term B Loan | Loan | 6.50 | % | 1.25 | % | 0.00 | % | 7.75 | % | 7/29/2019 | $ | 2,906,156 | 2,905,864 | 2,915,834 | ||||||||||||||||||||||
P.F. Chang's China Bistro, Inc. (Wok Acquisition Corp.) | Food/Drug Retailers | Term Borrowing | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.54 | % | 6/24/2019 | $ | 1,413,810 | 1,410,322 | 1,403,207 | ||||||||||||||||||||||
P2 Upstream Acquisition Co. (P2 Upstream Canada BC ULC) | Services: Business | Term Loan (First Lien) | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.18 | % | 10/30/2020 | $ | 967,500 | 964,621 | 945,731 | ||||||||||||||||||||||
Petsmart, Inc. (Argos Merger Sub, Inc.) | Retailers (Except Food and Drugs) | Term Loan B1 | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.01 | % | 3/11/2022 | $ | 980,000 | 975,713 | 940,898 | ||||||||||||||||||||||
PGX Holdings, Inc. | Financial Intermediaries | Term Loan | Loan | 5.25 | % | 1.00 | % | 0.00 | % | 6.30 | % | 9/29/2020 | $ | 2,871,499 | 2,857,322 | 2,873,308 | ||||||||||||||||||||||
Planet Fitness Holdings LLC | Leisure Goods/Activities/Movies | Term Loan | Loan | 3.00 | % | 0.75 | % | 0.00 | % | 4.15 | % | 3/31/2021 | $ | 2,386,345 | 2,379,828 | 2,390,831 | ||||||||||||||||||||||
Polycom Term Loan (9/16) | Telecommunications | Term Loan | Loan | 5.25 | % | 1.00 | % | 0.00 | % | 6.25 | % | 9/27/2023 | $ | 1,804,333 | 1,780,636 | 1,821,023 | ||||||||||||||||||||||
Pike Corporation | Construction & Building | Term Loan B | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.80 | % | 3/8/2024 | $ | 500,000 | 497,661 | 504,375 | ||||||||||||||||||||||
PrePaid Legal Services, Inc. | Services: Business | Term Loan B | Loan | 5.25 | % | 1.25 | % | 0.00 | % | 6.50 | % | 7/1/2019 | $ | 3,169,278 | 3,172,153 | 3,184,142 | ||||||||||||||||||||||
Presidio, Inc. | Services: Business | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.40 | % | 2/2/2022 | $ | 2,101,767 | 2,040,643 | 2,119,505 | ||||||||||||||||||||||
Prestige Brands T/L B4 | Drugs | Term Loan B4 | Loan | 2.75 | % | 0.75 | % | 0.00 | % | 3.79 | % | 1/26/2024 | $ | 477,225 | 476,160 | 481,005 | ||||||||||||||||||||||
Prime Security Services (Protection One) | Services: Business | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.29 | % | 5/2/2022 | $ | 1,980,062 | 1,970,177 | 1,995,982 | ||||||||||||||||||||||
Radio Systems Corporation | Leisure Goods/Activities/Movies | Term Loan | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.54 | % | 5/2/2024 | $ | 1,500,000 | 1,500,000 | 1,505,625 | ||||||||||||||||||||||
Ranpak Holdings, Inc. | Services: Business | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.29 | % | 10/1/2021 | $ | 913,716 | 911,432 | 914,858 | ||||||||||||||||||||||
Ranpak Holdings, Inc. | Services: Business | Term Loan (Second Lien) | Loan | 7.25 | % | 1.00 | % | 0.00 | % | 8.25 | % | 10/3/2022 | $ | 311,111 | 310,001 | 309,556 | ||||||||||||||||||||||
Redtop Acquisitions Limited | Electronics/Electric | Initial Dollar Term Loan (First Lien) | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.67 | % | 12/3/2020 | $ | 483,778 | 481,891 | 485,592 | ||||||||||||||||||||||
RGIS Services, LLC | Services: Business | Term Loan | Loan | 7.50 | % | 1.00 | % | 0.00 | % | 8.65 | % | 3/31/2023 | $ | 500,000 | 492,623 | 497,815 | ||||||||||||||||||||||
Research Now Group, Inc | Media | Term Loan B | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.65 | % | 3/18/2021 | $ | 2,004,470 | 1,996,990 | 1,979,414 | ||||||||||||||||||||||
Resolute Investment Managers, Inc. | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.40 | % | 4/30/2022 | $ | 728,517 | 727,070 | 729,733 | ||||||||||||||||||||||
Rexnord LLC/RBS Global, Inc. | Industrial Equipment | Term B Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.90 | % | 8/21/2023 | $ | 1,370,341 | 1,370,341 | 1,375,480 | ||||||||||||||||||||||
Reynolds Group Holdings Inc. | Industrial Equipment | Incremental U.S. Term Loan | Loan | 3.00 | % | 0.00 | % | 0.00 | % | 4.04 | % | 2/3/2023 | $ | 1,756,731 | 1,756,731 | 1,765,111 | ||||||||||||||||||||||
Rovi Solutions Corporation / Rovi Guides, Inc. | Electronics/Electric | Tranche B-3 Term Loan | Loan | 2.50 | % | 0.75 | % | 0.00 | % | 3.55 | % | 7/2/2021 | $ | 1,458,750 | 1,454,281 | 1,460,880 | ||||||||||||||||||||||
Royal Adhesives and Sealants | Chemicals/Plastics | Term Loan (Second Lien) | Loan | 7.50 | % | 1.00 | % | 0.00 | % | 8.65 | % | 6/19/2023 | $ | 275,862 | 274,177 | 275,172 | ||||||||||||||||||||||
Royal Holdings T/L (02/17) | Chemicals/Plastics | Term Loan (Second Lien) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.40 | % | 6/17/2022 | $ | 541,607 | 539,264 | 547,364 | ||||||||||||||||||||||
Russell Investment Management T/L B | Banking, Finance, Insurance & Real Estate | Term Loan B | Loan | 5.75 | % | 1.00 | % | 0.00 | % | 6.79 | % | 6/1/2023 | $ | 2,234,372 | 2,123,883 | 2,267,887 | ||||||||||||||||||||||
Sable International Finance Ltd | Telecommunications | Term Loan B2 | Loan | 3.50 | % | 0.00 | % | 0.00 | % | 4.54 | % | 1/31/2025 | $ | 1,500,000 | 1,492,500 | 1,505,250 | ||||||||||||||||||||||
SBP Holdings LP | Industrial Equipment | Term Loan (First Lien) | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.04 | % | 3/27/2021 | $ | 970,000 | 967,121 | 887,550 | ||||||||||||||||||||||
Scientific Games International, Inc. | Electronics/Electric | Term Loan B2 | Loan | 4.00 | % | 0.75 | % | 0.00 | % | 5.01 | % | 10/1/2021 | $ | 769,549 | 762,015 | 781,092 | ||||||||||||||||||||||
SCS Holdings (Sirius Computer) | High Tech Industries | Term Loan (First Lien) | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.29 | % | 10/31/2022 | $ | 1,871,532 | 1,837,243 | 1,887,327 | ||||||||||||||||||||||
Seadrill Operating LP | Oil & Gas | Term Loan B | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.15 | % | 2/21/2021 | $ | 974,811 | 923,318 | 667,746 | ||||||||||||||||||||||
Shearers Foods LLC | Food Services | Term Loan (First Lien) | Loan | 3.94 | % | 1.00 | % | 0.00 | % | 5.09 | % | 6/30/2021 | $ | 975,000 | 973,500 | 971,344 | ||||||||||||||||||||||
SG Acquisition, Inc. (Safe Guard) | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.15 | % | 3/29/2024 | $ | 2,000,000 | 1,980,387 | 1,985,000 | ||||||||||||||||||||||
Sitel Worldwide | Telecommunications | Term Loan | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.69 | % | 9/18/2021 | $ | 1,970,000 | 1,955,355 | 1,962,120 | ||||||||||||||||||||||
SMB Shipping Logistics T/L B (REP WWEX Acquisition) | Transportation | Term Loan B | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.67 | % | 2/2/2024 | $ | 1,000,000 | 995,503 | 1,002,080 | ||||||||||||||||||||||
Sonneborn, LLC | Chemicals/Plastics | Term Loan (First Lien) | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.79 | % | 12/10/2020 | $ | 207,451 | 207,127 | 209,007 | ||||||||||||||||||||||
Sonneborn, LLC | Chemicals/Plastics | Initial US Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.79 | % | 12/10/2020 | $ | 1,175,553 | 1,173,719 | 1,184,370 | ||||||||||||||||||||||
Sophia, L.P. | Electronics/Electric | Term Loan (Closing Date) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.40 | % | 9/30/2022 | $ | 1,935,931 | 1,927,068 | 1,929,155 | ||||||||||||||||||||||
SourceHOV LLC | Services: Business | Term Loan B (First Lien) | Loan | 6.75 | % | 1.00 | % | 0.00 | % | 7.90 | % | 10/31/2019 | $ | 1,812,500 | 1,782,852 | 1,703,750 | ||||||||||||||||||||||
SRAM, LLC | Industrial Equipment | Term Loan (First Lien) | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.58 | % | 3/15/2024 | $ | 2,677,652 | 2,655,727 | 2,684,346 | ||||||||||||||||||||||
Steak 'n Shake Operations, Inc. | Food Services | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.80 | % | 3/19/2021 | $ | 852,491 | 847,501 | 843,966 | ||||||||||||||||||||||
Survey Sampling International | Services: Business | Term Loan B | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.15 | % | 12/16/2020 | $ | 2,714,821 | 2,701,862 | 2,711,427 | ||||||||||||||||||||||
Sybil Finance BV | High Tech Industries | Term Loan B | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.40 | % | 9/29/2023 | $ | 987,500 | 983,249 | 1,000,091 | ||||||||||||||||||||||
Syniverse Holdings, Inc. | Telecommunications | Initial Term Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.17 | % | 4/23/2019 | $ | 468,409 | 466,632 | 445,377 | ||||||||||||||||||||||
Tennessee Merger T/L (Team Health) | Healthcare & Pharmaceuticals | Term Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.79 | % | 2/6/2024 | $ | 1,000,000 | 997,601 | 994,060 | ||||||||||||||||||||||
Townsquare Media, Inc. | Media | Term Loan B | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.04 | % | 4/1/2022 | $ | 911,712 | 907,481 | 914,374 | ||||||||||||||||||||||
TPF II Power LLC and TPF II Covert Midco LLC | Utilities | Term Loan B | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.04 | % | 10/2/2023 | $ | 1,413,873 | 1,367,114 | 1,403,566 | ||||||||||||||||||||||
TransDigm, Inc. | Aerospace and Defense | Tranche C Term Loan | Loan | 3.00 | % | 0.75 | % | 0.00 | % | 4.15 | % | 2/28/2020 | $ | 4,222,175 | 4,227,281 | 4,238,219 | ||||||||||||||||||||||
Travel Leaders Group, LLC | Hotel, Gaming and Leisure | Term Loan B | Loan | 5.25 | % | 0.00 | % | 0.00 | % | 6.29 | % | 1/25/2024 | $ | 2,000,000 | 1,990,390 | 2,018,760 | ||||||||||||||||||||||
Truck Hero, Inc. (Tectum Holdings) | Transportation | Term Loan B | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.16 | % | 4/22/2024 | $ | 2,000,000 | 1,980,000 | 2,000,000 | ||||||||||||||||||||||
Trugreen Limited Partnership | Services: Business | Term Loan B | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.50 | % | 4/13/2023 | $ | 496,250 | 489,897 | 500,592 | ||||||||||||||||||||||
Twin River Management Group, Inc. | Lodging & Casinos | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.65 | % | 7/10/2020 | $ | 792,846 | 794,051 | 796,810 | ||||||||||||||||||||||
Univar Inc. | Chemicals/Plastics | Term B Loan | Loan | 2.75 | % | 0.00 | % | 0.00 | % | 3.79 | % | 7/1/2022 | $ | 2,955,094 | 2,941,679 | 2,966,175 | ||||||||||||||||||||||
UOS, LLC (Utility One Source) | Capital Equipment | Term Loan B | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.53 | % | 4/18/2023 | $ | 500,000 | 495,062 | 509,375 | ||||||||||||||||||||||
Univision Communications Inc. | Telecommunications | Replacement First-Lien Term Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.79 | % | 3/15/2024 | $ | 2,877,927 | 2,860,288 | 2,852,746 | ||||||||||||||||||||||
Valeant Pharmaceuticals International, Inc. | Drugs | Series D2 Term Loan B | Loan | 4.75 | % | 0.75 | % | 0.00 | % | 5.75 | % | 4/1/2022 | $ | 1,689,182 | 1,689,182 | 1,718,743 | ||||||||||||||||||||||
Verint Systems Inc. | Services: Business | Term Loan | Loan | 2.75 | % | 0.75 | % | 0.00 | % | 3.92 | % | 9/6/2019 | $ | 1,003,684 | 1,001,096 | 1,010,790 | ||||||||||||||||||||||
Virtus Investment Partners, Inc. | Banking, Finance, Insurance & Real Estate | Term Loan B | Loan | 3.75 | % | 0.75 | % | 0.00 | % | 4.95 | % | 6/3/2024 | $ | 500,000 | 497,542 | 507,500 | ||||||||||||||||||||||
Vistra Operations Company T/L B (12/16) | Utilities | Term Loan B | Loan | 3.25 | % | 0.75 | % | 0.00 | % | 4.28 | % | 12/13/2023 | $ | 498,750 | 497,576 | 498,940 | ||||||||||||||||||||||
Vizient Inc. | Healthcare & Pharmaceuticals | Term Loan | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.54 | % | 2/13/2023 | $ | 879,853 | 857,810 | 890,121 | ||||||||||||||||||||||
Washington Inventory Service | High Tech Industries | Revolver | Loan | 5.50 | % | 0.00 | % | 0.00 | % | 9.50 | % | 7/14/2017 | $ | 31,390 | 31,390 | 30,919 | ||||||||||||||||||||||
Washington Inventory Service | High Tech Industries | U.S. Term Loan (First Lien) | Loan | 0.00 | % | 0.00 | % | 5.75 | % | 7.50 | % | 12/20/2018 | $ | 1,738,077 | 1,745,574 | 1,425,223 | ||||||||||||||||||||||
Western Digital Corporation | High Tech Industries | Term Loan B (USD) | Loan | 2.75 | % | 0.75 | % | 0.00 | % | 3.78 | % | 4/28/2023 | $ | 1,588,020 | 1,541,984 | 1,601,661 | ||||||||||||||||||||||
Windstream Services, LLC | Telecommunications | Term Loan B6 | Loan | 4.00 | % | 0.75 | % | 0.00 | % | 5.01 | % | 3/29/2021 | $ | 996,870 | 987,502 | 998,116 | ||||||||||||||||||||||
Xerox Business Services T/L B (Conduent) | Services: Business | Term Loan | Loan | 4.00 | % | 0.00 | % | 0.00 | % | 4.99 | % | 12/7/2023 | $ | 748,125 | 736,442 | 759,534 | ||||||||||||||||||||||
ZEP, Inc. | Chemicals/Plastics | Term Loan B | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.04 | % | 6/27/2022 | $ | 2,947,500 | 2,934,504 | 2,954,869 | ||||||||||||||||||||||
Zest Holdings 1st Lien T/L (2014 Replacement) | Healthcare & Pharmaceuticals | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.40 | % | 8/16/2023 | $ | 1,000,000 | 995,336 | 1,006,250 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||
| $ | 300,101,725 | $ | 294,713,104 | |||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||
| Principal | Cost | Fair Value | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||
U.S. Bank Money Market (a) | $ | 7,039,670 | $ | 7,039,670 | $ | 7,039,670 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 7,039,670 | $ | 7,039,670 | $ | 7,039,670 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
(a) Included within cash and cash equivalents in Saratoga CLO's Statements of Assets and Liabilities as of May 31, 2017.
22
Saratoga Investment Corp. CLO 2013-1 Ltd.
Schedule of Investments
February 28, 2017
Issuer Name | Industry | Asset Name | Asset Type | Spread | LIBOR Floor | PIK | Current Rate (All In) | Maturity Date | Principal/ Number of Shares | Cost | Fair Value | |||||||||||||||||||||||||||||
Education Management II, LLC | Leisure Goods/Activities/Movies | A-1 Preferred Shares | Equity | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 6,692 | $ | 669,214 | $ | 6,725 | ||||||||||||||||||||||||
Education Management II, LLC | Leisure Goods/Activities/Movies | A-2 Preferred Shares | Equity | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 18,975 | 1,897,538 | 247 | ||||||||||||||||||||||||||
New Millennium Holdco, Inc. | Healthcare & Pharmaceuticals | Common Stock | Equity | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 14,813 | 964,466 | 15,746 | ||||||||||||||||||||||||||
24 Hour Holdings III, LLC | Leisure Goods/Activities/Movies | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 5/28/2021 | $ | 487,500 | 484,284 | 476,127 | ||||||||||||||||||||||||
ABB Con-Cise Optical Group, LLC | Healthcare & Pharmaceuticals | Term Loan B | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.00 | % | 6/15/2023 | $ | 1,995,000 | 1,975,193 | 2,009,963 | ||||||||||||||||||||||||
Acosta Holdco, Inc. | Media | Term Loan B1 | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.29 | % | 9/26/2021 | $ | 1,940,025 | 1,929,297 | 1,893,348 | ||||||||||||||||||||||||
Advantage Sales & Marketing, Inc. | Services: Business | Delayed Draw Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 7/25/2021 | $ | 2,446,206 | 2,443,710 | 2,438,574 | ||||||||||||||||||||||||
Aegis Toxicology Science Corporation | Healthcare & Pharmaceuticals | Term B Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.50 | % | 2/24/2021 | $ | 2,463,550 | 2,337,204 | 2,412,234 | ||||||||||||||||||||||||
Agrofresh, Inc. | Food Services | Term Loan | Loan | 4.75 | % | 1.00 | % | 0.00 | % | 5.75 | % | 7/30/2021 | $ | 1,970,000 | 1,962,367 | 1,898,587 | ||||||||||||||||||||||||
AI MISTRAL T/L (V. GROUP) | Utilities | Term Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 3/11/2024 | $ | 500,000 | 500,000 | 500,940 | ||||||||||||||||||||||||
Akorn, Inc. | Healthcare & Pharmaceuticals | Term Loan B | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 4/16/2021 | $ | 398,056 | 396,948 | 403,529 | ||||||||||||||||||||||||
Albertson's LLC | Retailers (Except Food and Drugs) | Term Loan B-4 | Loan | 3.00 | % | 0.75 | % | 0.00 | % | 3.78 | % | 8/25/2021 | $ | 2,896,193 | 2,879,009 | 2,931,179 | ||||||||||||||||||||||||
Alere Inc. (fka IM US Holdings, LLC) | Healthcare & Pharmaceuticals | Term Loan B | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 6/20/2022 | $ | 917,946 | 916,144 | 919,479 | ||||||||||||||||||||||||
Alion Science and Technology Corporation | High Tech Industries | Term Loan B (First Lien) | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.50 | % | 8/19/2021 | $ | 2,955,000 | 2,943,621 | 2,951,306 | ||||||||||||||||||||||||
Alliance Healthcare Services, Inc. | Healthcare & Pharmaceuticals | Term Loan B | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.29 | % | 6/3/2019 | $ | 984,570 | 981,094 | 977,184 | ||||||||||||||||||||||||
ALPHA 3 T/L B1 (ATOTECH) | Chemicals/Plastics | Term Loan B 1 | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 1/31/2024 | $ | 250,000 | 249,377 | 252,500 | ||||||||||||||||||||||||
Anchor Glass T/L (11/16) | Containers/Glass Products | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 12/7/2023 | $ | 500,000 | 497,626 | 505,780 | ||||||||||||||||||||||||
APCO Holdings, Inc. | Automotive | Term Loan | Loan | 6.00 | % | 1.00 | % | 0.00 | % | 7.00 | % | 1/31/2022 | $ | 1,933,919 | 1,887,037 | 1,885,571 | ||||||||||||||||||||||||
Aramark Corporation | Food Products | U.S. Term F Loan | Loan | 2.50 | % | 0.75 | % | 0.00 | % | 3.50 | % | 2/24/2021 | $ | 3,118,358 | 3,118,358 | 3,147,327 | ||||||||||||||||||||||||
Aspen Dental Management, Inc. | Healthcare & Pharmaceuticals | Term Loan Initial | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 4/29/2022 | $ | 1,484,941 | 1,481,061 | 1,491,446 | ||||||||||||||||||||||||
Astoria Energy T/L B | Utilities | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 12/24/2021 | $ | 1,495,307 | 1,480,354 | 1,499,045 | ||||||||||||||||||||||||
Asurion, LLC (fka Asurion Corporation) | Insurance | Replacement Term Loan B-2 | Loan | 3.25 | % | 0.75 | % | 0.00 | % | 4.03 | % | 7/8/2020 | $ | 531,422 | 526,976 | 537,024 | ||||||||||||||||||||||||
Asurion, LLC (fka Asurion Corporation) | Insurance | Term Loan B4 (First Lien) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 8/4/2022 | $ | 2,434,375 | 2,422,950 | 2,463,661 | ||||||||||||||||||||||||
Auction.com, LLC | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.00 | % | 5/13/2019 | $ | 2,718,634 | 2,718,434 | 2,739,024 | ||||||||||||||||||||||||
Avantor Performance Materials Holdings, Inc. | Chemicals/Plastics | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.00 | % | 6/21/2022 | $ | 2,784,429 | 2,760,689 | 2,819,234 | ||||||||||||||||||||||||
AVOLON TLB BORROWER 1 LUXEMBOURG S.A.R.L. | Capital Equipment | Term Loan B-2 | Loan | 2.75 | % | 0.75 | % | 0.00 | % | 3.50 | % | 3/20/2022 | $ | 1,000,000 | 995,000 | 1,017,300 | ||||||||||||||||||||||||
Bass Pro Group, LLC | Retailers (Except Food and Drugs) | Term Loan | Loan | 3.25 | % | 0.75 | % | 0.00 | % | 4.02 | % | 6/5/2020 | $ | 1,473,750 | 1,471,637 | 1,411,116 | ||||||||||||||||||||||||
Belmond Interfin Ltd. | Lodging & Casinos | Term Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 3/19/2021 | $ | 2,481,122 | 2,484,502 | 2,488,888 | ||||||||||||||||||||||||
BJ's Wholesale Club, Inc. | Food/Drug Retailers | New 2013 (November) Replacement Loan (First Lien) | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 2/2/2024 | $ | 1,500,000 | 1,496,335 | 1,487,385 | ||||||||||||||||||||||||
Blackboard T/L B4 | High Tech Industries | Term Loan B4 | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.02 | % | 6/30/2021 | $ | 2,992,500 | 2,969,529 | 3,008,390 | ||||||||||||||||||||||||
BMC Software | Technology | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 9/10/2020 | $ | 1,959,596 | 1,917,256 | 1,965,729 | ||||||||||||||||||||||||
BMC Software T/L US | Technology | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 9/10/2020 | $ | 676,193 | 665,400 | 679,607 | ||||||||||||||||||||||||
Brickman Group Holdings, Inc. | Brokers/Dealers/Investment Houses | Initial Term Loan (First Lien) | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 12/18/2020 | $ | 1,461,186 | 1,451,382 | 1,467,952 | ||||||||||||||||||||||||
BWAY Holding Company | Leisure Goods/Activities/Movies | Term Loan B | Loan | 3.25 | % | 0.00 | % | 0.00 | % | 4.75 | % | 8/14/2023 | $ | 1,189,327 | 1,179,242 | 1,189,826 | ||||||||||||||||||||||||
Candy Intermediate Holdings, Inc. | Beverage, Food & Tobacco | Term Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.50 | % | 6/15/2023 | $ | 497,500 | 495,317 | 500,609 | ||||||||||||||||||||||||
Capital Automotive L.P. | Conglomerate | Tranche B-1 Term Loan Facility | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 4/10/2019 | $ | 1,487,353 | 1,489,058 | 1,500,829 | ||||||||||||||||||||||||
CASA SYSTEMS T/L | Telecommunications | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 12/20/2023 | $ | 1,500,000 | 1,485,318 | 1,500,000 | ||||||||||||||||||||||||
Catalent Pharma Solutions, Inc | Drugs | Initial Term B Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.75 | % | 5/20/2021 | $ | 424,821 | 423,456 | 429,953 | ||||||||||||||||||||||||
Cengage Learning Acquisitions, Inc. | Publishing | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 6/7/2023 | $ | 1,492,500 | 1,477,575 | 1,411,965 | ||||||||||||||||||||||||
CH HOLD (CALIBER COLLISION) T/L | Automotive | Term Loan | Loan | 3.00 | % | 0.00 | % | 0.00 | % | 4.00 | % | 2/1/2024 | $ | 227,273 | 226,758 | 229,545 | ||||||||||||||||||||||||
Charter Communications Operating, LLC | Cable and Satellite Television | Term F Loan | Loan | 2.00 | % | 0.00 | % | 0.00 | % | 2.79 | % | 1/3/2021 | $ | 1,609,533 | 1,603,525 | 1,617,130 | ||||||||||||||||||||||||
CHS/Community Health Systems, Inc. | Healthcare & Pharmaceuticals | Term G Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.80 | % | 12/31/2019 | $ | 981,177 | 960,939 | 972,866 | ||||||||||||||||||||||||
CHS/Community Health Systems, Inc. | Healthcare & Pharmaceuticals | Term H Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.05 | % | 1/27/2021 | $ | 1,805,352 | 1,763,950 | 1,773,940 | ||||||||||||||||||||||||
CITGO Petroleum Corporation | Oil & Gas | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 7/29/2021 | $ | 1,964,874 | 1,946,245 | 1,976,172 | ||||||||||||||||||||||||
Communications Sales & Leasing, Inc. | Telecommunications | Term Loan B (First Lien) | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 10/24/2022 | $ | 1,970,062 | 1,958,282 | 1,980,405 | ||||||||||||||||||||||||
Concordia Healthcare Corporation | Healthcare & Pharmaceuticals | Term Loan B | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 10/21/2021 | $ | 1,980,000 | 1,891,488 | 1,615,522 | ||||||||||||||||||||||||
Consolidated Aerospace Manufacturing, LLC | Aerospace and Defense | Term Loan (First Lien) | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 8/11/2022 | $ | 1,418,750 | 1,412,839 | 1,365,547 | ||||||||||||||||||||||||
Consolidated Communications, Inc. | Telecommunications | Term Loan B-2 | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 10/5/2023 | $ | 500,000 | 497,500 | 502,890 | ||||||||||||||||||||||||
CPI Acquisition Inc. | Technology | Term Loan B (First Lien) | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.83 | % | 8/17/2022 | $ | 1,436,782 | 1,418,783 | 1,289,511 | ||||||||||||||||||||||||
CPI International Acquisition, Inc. (f/k/a Catalyst Holdings, Inc.) | Electronics/Electric | Term B Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 11/17/2017 | $ | 2,462,342 | 2,461,490 | 2,457,934 | ||||||||||||||||||||||||
Crosby US Acquisition Corporation | Industrial Equipment | Initial Term Loan (First Lien) | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.05 | % | 11/23/2020 | $ | 727,500 | 726,911 | 667,329 | ||||||||||||||||||||||||
CT Technologies Intermediate Hldgs, Inc | Healthcare & Pharmaceuticals | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 12/1/2021 | $ | 1,470,113 | 1,458,924 | 1,389,256 | ||||||||||||||||||||||||
Culligan International Company-T/L | Conglomerate | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 12/13/2023 | $ | 2,050,000 | 2,049,738 | 2,083,313 | ||||||||||||||||||||||||
Cumulus Media Holdings Inc. | Broadcast Radio and Television | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 12/23/2020 | $ | 470,093 | 467,345 | 342,580 | ||||||||||||||||||||||||
DAE Aviation (StandardAero) | Aerospace and Defense | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 7/7/2022 | $ | 1,975,000 | 1,967,190 | 1,987,838 | ||||||||||||||||||||||||
DASEKE T/L (HENNESSY CAPITAL) | Transportation | Term Loan | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.50 | % | 2/27/2024 | $ | 714,286 | 707,143 | 717,857 | ||||||||||||||||||||||||
DCS Business Services, Inc. | Financial Intermediaries | Term B Loan | Loan | 7.25 | % | 1.50 | % | 0.00 | % | 8.75 | % | 3/19/2018 | $ | 2,101,458 | 2,096,045 | 2,101,458 | ||||||||||||||||||||||||
Delta 2 (Lux) S.a.r.l. | Lodging & Casinos | Term Loan B-3 | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 5.07 | % | 7/30/2021 | $ | 1,000,000 | 996,568 | 1,002,920 | ||||||||||||||||||||||||
DELL INTERNATIONAL 1ST LIEN T/L | High Tech Industries | Term Loan (01/17) | Loan | 2.50 | % | 0.75 | % | 0.00 | % | 3.25 | % | 9/7/2023 | $ | 1,000,000 | 998,850 | 1,006,480 | ||||||||||||||||||||||||
Deluxe Entertainment Service Group, Inc. | Leisure Goods/Activities/Movies | Term Loan (Incremental) | Loan | 6.00 | % | 1.00 | % | 0.00 | % | 7.04 | % | 2/28/2020 | $ | 1,000,000 | 972,672 | 997,500 | ||||||||||||||||||||||||
Deluxe Entertainment Service Group, Inc. | Leisure Goods/Activities/Movies | Term Loan (First Lien) | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.54 | % | 2/28/2020 | $ | 1,868,084 | 1,869,141 | 1,864,199 | ||||||||||||||||||||||||
DEX MEDIA, INC. | Media | Term Loan (07/16) | Loan | 10.00 | % | 1.00 | % | 0.00 | % | 11.00 | % | 7/29/2021 | $ | 43,444 | 43,444 | 44,041 | ||||||||||||||||||||||||
Diebold, Inc. | High Tech Industries | Term Loan B | Loan | 4.50 | % | 0.75 | % | 0.00 | % | 5.31 | % | 11/6/2023 | $ | 398,750 | 395,190 | 404,731 | ||||||||||||||||||||||||
DIGITALGLOBE T/L B (12/16) | Aerospace and Defense | Term Loan B | Loan | 2.75 | % | 0.75 | % | 0.00 | % | 3.53 | % | 1/15/2024 | $ | 500,000 | 498,815 | 502,030 | ||||||||||||||||||||||||
DJO Finance, LLC | Healthcare & Pharmaceuticals | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 6/8/2020 | $ | 492,500 | 490,933 | 483,388 | ||||||||||||||||||||||||
DPX Holdings B.V. | Healthcare & Pharmaceuticals | Term Loan 2015 Incr Dollar | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 3/11/2021 | $ | 2,925,000 | 2,919,916 | 2,937,431 | ||||||||||||||||||||||||
Drew Marine Group, Inc. | Chemicals/Plastics | Term Loan (First Lien) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 11/19/2020 | $ | 2,950,591 | 2,923,591 | 2,928,461 | ||||||||||||||||||||||||
DTZ U.S. Borrower, LLC | Construction & Building | Term Loan B Add-on | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.30 | % | 11/4/2021 | $ | 1,962,557 | 1,954,741 | 1,973,703 | ||||||||||||||||||||||||
DUKE FINANCE (OM GROUP/VECTRA) T/L | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.00 | % | 2/21/2024 | $ | 1,500,000 | 1,395,987 | 1,511,250 | ||||||||||||||||||||||||
Edelman Financial Group, Inc. | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.51 | % | 12/19/2022 | $ | 1,485,000 | 1,459,535 | 1,487,317 | ||||||||||||||||||||||||
Education Management II, LLC | Leisure Goods/Activities/Movies | Term Loan A | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.51 | % | 7/2/2020 | $ | 501,970 | 488,778 | 177,446 | ||||||||||||||||||||||||
Education Management II, LLC | Leisure Goods/Activities/Movies | Term Loan B (2.00% Cash/6.50% PIK) | Loan | 1.00 | % | 1.00 | % | 6.50 | % | 8.51 | % | 7/2/2020 | $ | 954,307 | 934,189 | 77,938 | ||||||||||||||||||||||||
Emerald Performance Materials, LLC | Chemicals/Plastics | Term Loan (First Lien) | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 8/1/2021 | $ | 480,756 | 479,151 | 483,308 | ||||||||||||||||||||||||
Emerald Performance Materials, LLC | Chemicals/Plastics | Term Loan (Second Lien) | Loan | 7.75 | % | 1.00 | % | 0.00 | % | 8.75 | % | 8/1/2022 | $ | 500,000 | 498,153 | 498,595 | ||||||||||||||||||||||||
Emerald 2 Limited | Chemicals/Plastics | Term Loan B1A | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 5/14/2021 | $ | 1,000,000 | 994,172 | 950,000 | ||||||||||||||||||||||||
Endo International plc | Healthcare & Pharmaceuticals | Term Loan B | Loan | 3.00 | % | 0.75 | % | 0.00 | % | 3.81 | % | 9/26/2022 | $ | 990,000 | 987,999 | 994,247 | ||||||||||||||||||||||||
EnergySolutions, LLC | Environmental Industries | Term Loan B | Loan | 5.75 | % | 1.00 | % | 0.00 | % | 6.75 | % | 5/29/2020 | $ | 795,000 | 785,654 | 799,969 | ||||||||||||||||||||||||
Engility Corporation | Aerospace and Defense | Term Loan B-1 | Loan | 4.25 | % | 0.70 | % | 0.00 | % | 4.03 | % | 8/12/2020 | $ | 243,750 | 242,680 | 245,503 | ||||||||||||||||||||||||
Evergreen Acqco 1 LP | Retailers (Except Food and Drugs) | New Term Loan | Loan | 3.75 | % | 1.25 | % | 0.00 | % | 5.00 | % | 7/9/2019 | $ | 955,106 | 954,175 | 846,224 | ||||||||||||||||||||||||
EWT Holdings III Corp. (fka WTG Holdings III Corp.) | Industrial Equipment | Term Loan (First Lien) | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 1/15/2021 | $ | 1,947,330 | 1,943,904 | 1,954,632 | ||||||||||||||||||||||||
EWT Holdings III Corp. | Capital Equipment | Term Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.50 | % | 1/15/2021 | $ | 992,500 | 984,248 | 997,463 | ||||||||||||||||||||||||
Extreme Reach, Inc. | Media | Term Loan B | Loan | 6.25 | % | 1.00 | % | 0.00 | % | 7.25 | % | 2/7/2020 | $ | 2,887,500 | 2,860,092 | 2,905,547 | ||||||||||||||||||||||||
Federal-Mogul Corporation | Automotive | Tranche C Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 4/15/2021 | $ | 2,925,000 | 2,915,873 | 2,894,434 | ||||||||||||||||||||||||
First Data Corporation | Financial Intermediaries | First Data T/L Ext (2021) | Loan | 3.00 | % | 0.70 | % | 0.00 | % | 3.78 | % | 3/24/2021 | $ | 1,886,914 | 1,804,119 | 1,904,010 | ||||||||||||||||||||||||
First Eagle Investment Management | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 4.00 | % | 0.75 | % | 0.00 | % | 5.00 | % | 12/1/2022 | $ | 1,485,000 | 1,460,081 | 1,493,361 | ||||||||||||||||||||||||
Fitness International, LLC | Leisure Goods/Activities/Movies | Term Loan B | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.00 | % | 7/1/2020 | $ | 1,929,311 | 1,905,661 | 1,947,793 | ||||||||||||||||||||||||
FMG Resources (August 2006) Pty LTD (FMG America Finance, Inc.) | Nonferrous Metals/Minerals | Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.75 | % | 6/28/2019 | $ | 801,502 | 802,865 | 806,279 | ||||||||||||||||||||||||
Garda World Security Corporation | Services: Business | Term B Delayed Draw Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 11/6/2020 | $ | 197,083 | 196,509 | 197,822 | ||||||||||||||||||||||||
Garda World Security Corporation | Services: Business | Term B Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 11/6/2020 | $ | 770,417 | 768,226 | 773,306 | ||||||||||||||||||||||||
Gardner Denver, Inc. | High Tech Industries | Initial Dollar Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.57 | % | 7/30/2020 | $ | 2,426,061 | 2,421,316 | 2,420,263 | ||||||||||||||||||||||||
Gates Global LLC | Leisure Goods/Activities/Movies | Term Loan (First Lien) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 7/5/2021 | $ | 481,656 | 476,839 | 481,478 | ||||||||||||||||||||||||
General Nutrition Centers, Inc. | Retailers (Except Food and Drugs) | Amended Tranche B Term Loan | Loan | 2.50 | % | 0.75 | % | 0.00 | % | 3.29 | % | 3/4/2019 | $ | 2,121,102 | 2,117,573 | 1,765,817 | ||||||||||||||||||||||||
GLOBALLOGIC HOLDINGS INC TERM LOAN B | Services: Business | Term Loan B | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.50 | % | 6/20/2022 | $ | 500,000 | 495,133 | 501,250 | ||||||||||||||||||||||||
Global Tel*Link Corporation | Services: Business | Term Loan (First Lien) | Loan | 3.75 | % | 1.25 | % | 0.00 | % | 5.00 | % | 5/26/2020 | $ | 2,667,633 | 2,661,035 | 2,654,962 | ||||||||||||||||||||||||
Goodyear Tire & Rubber Company, The | Chemicals/Plastics | Loan (Second Lien) | Loan | 3.00 | % | 0.75 | % | 0.00 | % | 3.78 | % | 4/30/2019 | $ | 1,333,333 | 1,320,613 | 1,333,747 | ||||||||||||||||||||||||
Grosvenor Capital Management Holdings, LP | Brokers/Dealers/Investment Houses | Initial Term Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.75 | % | 1/4/2021 | $ | 1,014,560 | 1,011,573 | 1,010,755 | ||||||||||||||||||||||||
GTCR Valor Companies, Inc. | Services: Business | Term Loan B | Loan | 6.00 | % | 1.00 | % | 0.00 | % | 7.00 | % | 6/16/2023 | $ | 1,492,500 | 1,436,528 | 1,501,201 | ||||||||||||||||||||||||
Harland Clarke Holdings Corp. (fka Clarke American Corp.) | Publishing | Tranche B-4 Term Loan | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.50 | % | 2/9/2022 | $ | 2,176,889 | 2,117,378 | 2,190,495 | ||||||||||||||||||||||||
Headwaters Incorporated | Building & Development | Term Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 3/24/2022 | $ | 242,058 | 241,141 | 242,784 | ||||||||||||||||||||||||
Help/Systems Holdings, Inc. | High Tech Industries | Term Loan | Loan | 5.25 | % | 1.00 | % | 0.00 | % | 6.25 | % | 10/8/2021 | $ | 1,485,000 | 1,433,886 | 1,485,000 | ||||||||||||||||||||||||
Hemisphere Media Holdings, LLC | Media | Term Loan B | Loan | 3.50 | % | 0.00 | % | 0.00 | % | 4.27 | % | 2/14/2024 | $ | 2,500,000 | 2,512,500 | 2,493,750 | ||||||||||||||||||||||||
Herbalife T/L B (HLF Financing) | Drugs | Term Loan B | Loan | 5.50 | % | 0.75 | % | 0.00 | % | 6.28 | % | 2/15/2023 | $ | 2,000,000 | 1,985,000 | 2,001,660 | ||||||||||||||||||||||||
Hercules Achievement Holdings, Inc. | Retailers (Except Food and Drugs) | Term Loan B | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 12/10/2021 | $ | 246,851 | 244,820 | 250,431 | ||||||||||||||||||||||||
Hoffmaster Group, Inc. | Containers/Glass Products | Term Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.50 | % | 11/21/2023 | $ | 1,000,000 | 1,003,734 | 1,013,750 | ||||||||||||||||||||||||
Hostess Brand, LLC | Beverage, Food & Tobacco | Term Loan B (First Lien) | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 8/3/2022 | $ | 1,490,000 | 1,486,482 | 1,507,508 | ||||||||||||||||||||||||
Huntsman International LLC | Chemicals/Plastics | Term Loan B (First Lien) | Loan | 3.00 | % | 0.70 | % | 0.00 | % | 3.78 | % | 4/19/2019 | $ | 1,518,031 | 1,510,811 | 1,525,150 | ||||||||||||||||||||||||
Husky Injection Molding Systems Ltd. | Services: Business | Term Loan B | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 6/30/2021 | $ | 469,398 | 467,182 | 472,158 | ||||||||||||||||||||||||
Hyperion Refinance T/L | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.50 | % | 4/29/2022 | $ | 1,994,924 | 1,971,849 | 1,998,675 | ||||||||||||||||||||||||
Imagine! Print Solutions, Inc. | Media | Term Loan B | Loan | 6.00 | % | 1.00 | % | 0.00 | % | 7.00 | % | 3/30/2022 | $ | 496,250 | 489,837 | 499,972 | ||||||||||||||||||||||||
Infor US (Lawson) T/L B-6 | Services: Business | Term Loan B-6 | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.75 | % | 2/1/2022 | $ | 1,609,802 | 1,595,316 | 1,610,945 | ||||||||||||||||||||||||
Informatica Corporation | High Tech Industries | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 8/5/2022 | $ | 493,750 | 492,732 | 490,664 | ||||||||||||||||||||||||
Insight Global | Services: Business | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.00 | % | 10/29/2021 | $ | 3,450,126 | 3,434,977 | 3,471,690 | ||||||||||||||||||||||||
ION Media T/L B | Media | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 12/18/2020 | $ | 500,000 | 497,615 | 506,875 | ||||||||||||||||||||||||
J. Crew Group, Inc. | Retailers (Except Food and Drugs) | Term B-1 Loan Retired 03/05/2014 | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 3/5/2021 | $ | 945,756 | 945,756 | 540,660 | ||||||||||||||||||||||||
Jazz Acquisition, Inc | Aerospace and Defense | First Lien 6/14 | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 6/19/2021 | $ | 487,879 | 487,106 | 471,208 | ||||||||||||||||||||||||
J.Jill Group, Inc. | Retailers (Except Food and Drugs) | Term Loan (First Lien) | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.04 | % | 5/9/2022 | $ | 950,648 | 946,877 | 935,200 | ||||||||||||||||||||||||
Kinetic Concepts, Inc. | Healthcare & Pharmaceuticals | Term Loan F-1 | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 4.28 | % | 2/2/2024 | $ | 2,400,000 | 2,388,246 | 2,399,496 | ||||||||||||||||||||||||
Koosharem, LLC | Services: Business | Term Loan | Loan | 6.50 | % | 1.00 | % | 0.00 | % | 7.50 | % | 5/15/2020 | $ | 2,935,100 | 2,917,778 | 2,730,259 | ||||||||||||||||||||||||
Kraton Polymers, LLC | Chemicals/Plastics | Term Loan (Initial) | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 1/6/2022 | $ | 2,500,000 | 2,286,776 | 2,533,825 | ||||||||||||||||||||||||
Lannett Company T/L A | Healthcare & Pharmaceuticals | Term Loan A | Loan | 4.75 | % | 1.00 | % | 0.00 | % | 5.75 | % | 11/25/2020 | $ | 1,000,000 | 970,576 | 985,000 | ||||||||||||||||||||||||
Lannett Company, Inc. | Healthcare & Pharmaceuticals | Term Loan B | Loan | 5.38 | % | 1.00 | % | 0.00 | % | 6.38 | % | 11/25/2022 | $ | 1,900,000 | 1,842,852 | 1,885,750 | ||||||||||||||||||||||||
LEARFIELD COMMUNICATIONS INITIAL T/L (A-L PARENT) | Healthcare & Pharmaceuticals | Initial Term Loan (A-L Parent) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 12/1/2023 | $ | 500,000 | 497,713 | 505,625 | ||||||||||||||||||||||||
Lightstone Generation T/L B | Utilities | Term Loan B | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.54 | % | 1/30/2024 | $ | 913,043 | 894,897 | 925,981 | ||||||||||||||||||||||||
Lightstone Generation T/L C | Utilities | Term Loan C | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.54 | % | 1/30/2024 | $ | 86,957 | 85,236 | 88,189 | ||||||||||||||||||||||||
Limetree Bay Terminals T/L (01/17) | Oil & Gas | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.04 | % | 2/15/2024 | $ | 500,000 | 495,000 | 503,125 | ||||||||||||||||||||||||
LPL Holdings | Banking, Finance, Insurance & Real Estate | Term Loan B (2022) | Loan | 4.00 | % | 0.75 | % | 0.00 | % | 4.78 | % | 11/21/2022 | $ | 1,980,000 | 1,963,355 | 2,007,225 | ||||||||||||||||||||||||
Mauser Holdings, Inc. | Containers/Glass Products | Term Loan | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 7/31/2021 | $ | 488,750 | 487,123 | 488,647 | ||||||||||||||||||||||||
McGraw-Hill Global Education Holdings, LLC | Publishing | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 5/4/2022 | $ | 995,000 | 990,840 | 977,468 | ||||||||||||||||||||||||
Michaels Stores, Inc. | Retailers (Except Food and Drugs) | Term Loan B1 | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.75 | % | 1/30/2023 | $ | 1,679,779 | 1,674,140 | 1,674,673 | ||||||||||||||||||||||||
Micro Holding Corporation | High Tech Industries | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 7/8/2021 | $ | 982,378 | 978,629 | 985,079 | ||||||||||||||||||||||||
Microsemi Corporation | Electronics/Electric | Term Loan B | Loan | 2.25 | % | 0.00 | % | 0.00 | % | 3.03 | % | 1/17/2023 | $ | 868,445 | 845,882 | 874,593 | ||||||||||||||||||||||||
Midas Intermediate Holdco II, LLC | Automotive | Term Loan (Initial) | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 3.75 | % | 8/18/2021 | $ | 244,375 | 243,499 | 246,005 | ||||||||||||||||||||||||
Milacron T/L B | Capital Equipment | Term Loan B | Loan | 3.00 | % | 0.00 | % | 0.00 | % | 3.78 | % | 9/28/2023 | $ | 1,000,000 | 996,250 | 1,004,380 | ||||||||||||||||||||||||
Milk Specialties Company | Beverage, Food & Tobacco | Term Loan | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 8/16/2023 | $ | 997,500 | 987,646 | 1,004,562 | ||||||||||||||||||||||||
Mister Car Wash T/L | Automotive | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 8/20/2021 | $ | 831,203 | 825,179 | 832,931 | ||||||||||||||||||||||||
MSC Software Corporation | Services: Business | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 5/29/2020 | $ | 1,969,898 | 1,931,995 | 1,972,360 | ||||||||||||||||||||||||
MWI Holdings, Inc. | Capital Equipment | Term Loan (First Lien) | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.50 | % | 6/29/2020 | $ | 2,985,000 | 2,956,823 | 3,007,388 | ||||||||||||||||||||||||
National Veterinary Associates, Inc | Healthcare & Pharmaceuticals | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 8/14/2021 | $ | 977,543 | 974,893 | 982,430 | ||||||||||||||||||||||||
National Vision, Inc. | Retailers (Except Food and Drugs) | Term Loan (Second Lien) | Loan | 5.75 | % | 1.00 | % | 0.00 | % | 6.75 | % | 3/11/2022 | $ | 250,000 | 249,793 | 242,750 | ||||||||||||||||||||||||
New Media Holdings II T/L (NEW) | Retailers (Except Food and Drugs) | Term Loan | Loan | 6.25 | % | 1.00 | % | 0.00 | % | 7.25 | % | 6/4/2020 | $ | 3,168,116 | 3,154,983 | 3,140,395 | ||||||||||||||||||||||||
New Millennium Holdco, Inc. | Healthcare & Pharmaceuticals | Term Loan | Loan | 6.50 | % | 1.00 | % | 0.00 | % | 7.50 | % | 12/21/2020 | $ | 1,930,106 | 1,777,976 | 980,494 | ||||||||||||||||||||||||
Novetta Solutions | Aerospace and Defense | Term Loan (200MM) | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.00 | % | 10/16/2022 | $ | 1,980,000 | 1,963,361 | 1,890,900 | ||||||||||||||||||||||||
Novetta Solutions | Aerospace and Defense | Term Loan (2nd Lien) | Loan | 8.50 | % | 1.00 | % | 0.00 | % | 9.50 | % | 10/16/2023 | $ | 1,000,000 | 991,237 | 930,000 | ||||||||||||||||||||||||
NPC International, Inc. | Food Services | Term Loan (2013) | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 12/28/2018 | $ | 476,250 | 476,250 | 477,241 | ||||||||||||||||||||||||
NVA Holdings (National Veterinary) T/L B2 | Services: Consumer | Term Loan B2 | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 8/14/2021 | $ | 129,601 | 129,601 | 130,897 | ||||||||||||||||||||||||
NVA Holdings, Inc. | Services: Consumer | Term Loan B1 | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 8/14/2021 | $ | 157,443 | 157,108 | 158,034 | ||||||||||||||||||||||||
NXT Capital T/L (11/16) | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.50 | % | 11/23/2022 | $ | 1,000,000 | 995,240 | 1,013,750 | ||||||||||||||||||||||||
ON Semiconductor Corporation | High Tech Industries | Term Loan B | Loan | 3.25 | % | 0.70 | % | 0.00 | % | 4.03 | % | 3/31/2023 | $ | 498,750 | 491,370 | 503,204 | ||||||||||||||||||||||||
Onex Carestream Finance LP | Healthcare & Pharmaceuticals | Term Loan (First Lien 2013) | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 6/7/2019 | $ | 3,613,555 | 3,606,228 | 3,490,297 | ||||||||||||||||||||||||
OnexYork Acquisition Co | Healthcare & Pharmaceuticals | Term Loan B | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 10/1/2021 | $ | 488,750 | 486,195 | 475,554 | ||||||||||||||||||||||||
OpenLink International, LLC | Services: Business | Term B Loan | Loan | 6.50 | % | 1.25 | % | 0.00 | % | 7.75 | % | 7/29/2019 | $ | 2,913,824 | 2,913,362 | 2,938,096 | ||||||||||||||||||||||||
P.F. Chang's China Bistro, Inc. (Wok Acquisition Corp.) | Food/Drug Retailers | Term Borrowing | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.54 | % | 6/24/2019 | $ | 1,417,598 | 1,413,680 | 1,389,245 | ||||||||||||||||||||||||
P2 Upstream Acquisition Co. (P2 Upstream Canada BC ULC) | Services: Business | Term Loan (First Lien) | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.25 | % | 10/30/2020 | $ | 970,000 | 966,928 | 933,625 | ||||||||||||||||||||||||
Petsmart, Inc. (Argos Merger Sub, Inc.) | Retailers (Except Food and Drugs) | Term Loan B1 | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 3/11/2022 | $ | 982,500 | 977,998 | 967,183 | ||||||||||||||||||||||||
PGX Holdings, Inc. | Financial Intermediaries | Term Loan | Loan | 5.25 | % | 1.00 | % | 0.00 | % | 6.25 | % | 9/29/2020 | $ | 2,891,464 | 2,876,188 | 2,889,671 | ||||||||||||||||||||||||
Planet Fitness Holdings LLC | Leisure Goods/Activities/Movies | Term Loan | Loan | 3.50 | % | 0.75 | % | 0.00 | % | 4.28 | % | 3/31/2021 | $ | 2,392,341 | 2,385,223 | 2,407,293 | ||||||||||||||||||||||||
Polycom Term Loan (9/16) | Telecommunications | Term Loan | Loan | 5.25 | % | 1.00 | % | 0.00 | % | 6.25 | % | 9/27/2023 | $ | 1,894,167 | 1,868,863 | 1,907,426 | ||||||||||||||||||||||||
PrePaid Legal Services, Inc. | Services: Business | Term Loan B | Loan | 5.25 | % | 1.25 | % | 0.00 | % | 6.50 | % | 7/1/2019 | $ | 3,328,536 | 3,330,285 | 3,335,825 | ||||||||||||||||||||||||
Presidio, Inc. | Services: Business | Term Loan | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 2/2/2022 | $ | 2,297,698 | 2,248,964 | 2,314,930 | ||||||||||||||||||||||||
Prestige Brands T/L B4 | Drugs | Term Loan B4 | Loan | 2.75 | % | 0.75 | % | 0.00 | % | 3.53 | % | 1/26/2024 | $ | 500,000 | 498,779 | 506,040 | ||||||||||||||||||||||||
Prime Security Services (Protection One) | Services: Business | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 5/2/2022 | $ | 1,985,025 | 1,975,632 | 2,003,645 | ||||||||||||||||||||||||
Ranpak Holdings, Inc. | Services: Business | Term Loan | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 10/1/2021 | $ | 916,047 | 913,757 | 918,337 | ||||||||||||||||||||||||
Ranpak Holdings, Inc. | Services: Business | Term Loan (Second Lien) | Loan | 7.25 | % | 1.00 | % | 0.00 | % | 8.25 | % | 10/3/2022 | $ | 500,000 | 498,149 | 475,000 | ||||||||||||||||||||||||
Redtop Acquisitions Limited | Electronics/Electric | Initial Dollar Term Loan (First Lien) | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.54 | % | 12/3/2020 | $ | 485,019 | 483,001 | 486,634 | ||||||||||||||||||||||||
Regal Cinemas Corporation | Services: Consumer | Term Loan | Loan | 2.50 | % | 0.75 | % | 0.00 | % | 3.28 | % | 4/1/2022 | $ | 495,009 | 493,772 | 499,573 | ||||||||||||||||||||||||
Research Now Group, Inc | Media | Term Loan B | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.50 | % | 3/18/2021 | $ | 2,037,705 | 2,029,696 | 2,002,045 | ||||||||||||||||||||||||
Resolute Investment Managers, Inc. | Banking, Finance, Insurance & Real Estate | Term Loan | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 4/30/2022 | $ | 240,815 | 239,883 | 241,518 | ||||||||||||||||||||||||
Rexnord LLC/RBS Global, Inc. | Industrial Equipment | Term B Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.75 | % | 8/21/2023 | $ | 732,374 | 732,374 | 736,497 | ||||||||||||||||||||||||
Rexnord LLC/RBS Global, Inc. | Industrial Equipment | Term B Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.75 | % | 8/21/2023 | $ | 641,402 | 641,402 | 645,013 | ||||||||||||||||||||||||
Reynolds Group Holdings Inc. | Industrial Equipment | Incremental U.S. Term Loan | Loan | 3.00 | % | 0.00 | % | 0.00 | % | 3.78 | % | 2/3/2023 | $ | 1,761,134 | 1,761,134 | 1,773,603 | ||||||||||||||||||||||||
Rovi Solutions Corporation / Rovi Guides, Inc. | Electronics/Electric | Tranche B-3 Term Loan | Loan | 2.50 | % | 0.75 | % | 0.00 | % | 3.29 | % | 7/2/2021 | $ | 1,462,500 | 1,457,765 | 1,467,984 | ||||||||||||||||||||||||
Royal Adhesives and Sealants | Chemicals/Plastics | Term Loan (Second Lien) | Loan | 7.50 | % | 1.00 | % | 0.00 | % | 8.50 | % | 6/19/2023 | $ | 275,862 | 274,109 | 276,552 | ||||||||||||||||||||||||
Royal Holdings T/L (02/17) | Chemicals/Plastics | Term Loan (Second Lien) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 6/17/2022 | $ | 541,607 | 539,167 | 544,992 | ||||||||||||||||||||||||
RPI Finance Trust | Financial Intermediaries | Term B-4 Term Loan | Loan | 2.50 | % | 0.00 | % | 0.00 | % | 3.50 | % | 10/14/2022 | $ | 2,554,764 | 2,554,764 | 2,580,848 | ||||||||||||||||||||||||
Russell Investment Management T/L B | Banking, Finance, Insurance & Real Estate | Term Loan B | Loan | 5.75 | % | 1.00 | % | 0.00 | % | 6.75 | % | 6/1/2023 | $ | 2,240,000 | 2,127,043 | 2,259,600 | ||||||||||||||||||||||||
Sable International Finance Ltd | Telecommunications | Term Loan B2 | Loan | 4.75 | % | 0.75 | % | 0.00 | % | 5.53 | % | 12/30/2022 | $ | 1,500,000 | 1,470,825 | 1,521,570 | ||||||||||||||||||||||||
SBP Holdings LP | Industrial Equipment | Term Loan (First Lien) | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 3/27/2021 | $ | 972,500 | 969,442 | 870,388 | ||||||||||||||||||||||||
Scientific Games International, Inc. | Electronics/Electric | Term Loan B2 | Loan | 4.00 | % | 0.75 | % | 0.00 | % | 4.85 | % | 10/1/2021 | $ | 769,549 | 762,102 | 781,416 | ||||||||||||||||||||||||
SCS Holdings (Sirius Computer) | High Tech Industries | Term Loan (First Lien) | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 10/31/2022 | $ | 1,972,528 | 1,934,960 | 1,991,030 | ||||||||||||||||||||||||
Seadrill Operating LP | Oil & Gas | Term Loan B | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 2/21/2021 | $ | 977,330 | 922,444 | 729,635 | ||||||||||||||||||||||||
Shearers Foods LLC | Food Services | Term Loan (First Lien) | Loan | 3.94 | % | 1.00 | % | 0.00 | % | 4.94 | % | 6/30/2021 | $ | 977,500 | 975,832 | 979,944 | ||||||||||||||||||||||||
Sitel Worldwide | Telecommunications | Term Loan | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.56 | % | 9/18/2021 | $ | 1,975,000 | 1,959,274 | 1,961,432 | ||||||||||||||||||||||||
SMB Shipping Logistics T/L B (REP WWEX Acquisition) | Transportation | Term Loan B | Loan | 4.50 | % | 1.00 | % | 0.00 | % | 5.53 | % | 2/2/2024 | $ | 1,000,000 | 995,095 | 1,008,330 | ||||||||||||||||||||||||
Sonneborn, LLC | Chemicals/Plastics | Term Loan (First Lien) | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 12/10/2020 | $ | 207,981 | 207,633 | 208,501 | ||||||||||||||||||||||||
Sonneborn, LLC | Chemicals/Plastics | Initial US Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 12/10/2020 | $ | 1,178,561 | 1,176,588 | 1,181,508 | ||||||||||||||||||||||||
Sophia, L.P. | Electronics/Electric | Term Loan (Closing Date) | Loan | 3.25 | % | 1.00 | % | 0.00 | % | 4.25 | % | 9/30/2022 | $ | 1,960,897 | 1,951,404 | 1,967,761 | ||||||||||||||||||||||||
SourceHOV LLC | Services: Business | Term Loan B (First Lien) | Loan | 6.75 | % | 1.00 | % | 0.00 | % | 7.75 | % | 10/31/2019 | $ | 1,837,500 | 1,804,647 | 1,808,412 | ||||||||||||||||||||||||
SRAM, LLC | Industrial Equipment | Term Loan (First Lien) | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 4/10/2020 | $ | 2,725,103 | 2,719,454 | 2,718,289 | ||||||||||||||||||||||||
Steak ‘n Shake Operations, Inc. | Food Services | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 3/19/2021 | $ | 923,173 | 917,444 | 930,097 | ||||||||||||||||||||||||
Survey Sampling International | Services: Business | Term Loan B | Loan | 5.00 | % | 1.00 | % | 0.00 | % | 6.00 | % | 12/16/2020 | $ | 2,721,749 | 2,707,531 | 2,721,749 | ||||||||||||||||||||||||
Sybil Finance BV | High Tech Industries | Term Loan B | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 9/30/2022 | $ | 987,500 | 982,957 | 1,002,006 | ||||||||||||||||||||||||
Syniverse Holdings, Inc. | Telecommunications | Initial Term Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.04 | % | 4/23/2019 | $ | 468,977 | 466,972 | 427,473 | ||||||||||||||||||||||||
TaxACT, Inc. | Services: Business | Term Loan B | Loan | 6.00 | % | 1.00 | % | 0.00 | % | 7.00 | % | 1/3/2023 | $ | 1,200,000 | 1,168,727 | 1,206,000 | ||||||||||||||||||||||||
Tectum Holdings, Inc. | Transportation | Delayed Draw Term Loan (Initial) | Loan | 4.75 | % | 1.00 | % | 0.00 | % | 5.80 | % | 8/24/2023 | $ | 997,500 | 988,185 | 1,004,981 | ||||||||||||||||||||||||
Tennessee Merger T/L (Team Health) | Healthcare & Pharmaceuticals | Term Loan | Loan | 2.75 | % | 1.00 | % | 0.00 | % | 3.75 | % | 2/6/2024 | $ | 1,000,000 | 997,518 | 996,880 | ||||||||||||||||||||||||
TGI Friday's, Inc. | Food Services | Term Loan B | Loan | 4.25 | % | 1.00 | % | 0.00 | % | 5.25 | % | 7/15/2020 | $ | 1,651,817 | 1,648,856 | 1,646,316 | ||||||||||||||||||||||||
Townsquare Media, Inc. | Media | Term Loan B | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 4/1/2022 | $ | 932,522 | 927,933 | 937,185 | ||||||||||||||||||||||||
TPF II Power LLC and TPF II Covert Midco LLC | Utilities | Term Loan B | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 10/2/2021 | $ | 1,413,873 | 1,364,619 | 1,426,683 | ||||||||||||||||||||||||
TransDigm, Inc. | Aerospace and Defense | Tranche C Term Loan | Loan | 3.00 | % | 0.75 | % | 0.00 | % | 3.78 | % | 2/28/2020 | $ | 4,233,198 | 4,238,155 | 4,249,920 | ||||||||||||||||||||||||
Travel Leaders Group, LLC | Hotel, Gaming and Leisure | Term Loan B | Loan | 5.25 | % | 0.00 | % | 0.00 | % | 6.03 | % | 1/25/2024 | $ | 2,000,000 | 1,990,095 | 2,025,000 | ||||||||||||||||||||||||
Trugreen Limited Partnership | Services: Business | Term Loan B | Loan | 5.50 | % | 1.00 | % | 0.00 | % | 6.50 | % | 4/13/2023 | $ | 497,500 | 490,931 | 503,719 | ||||||||||||||||||||||||
Twin River Management Group, Inc. | Lodging & Casinos | Term Loan B | Loan | 3.50 | % | 1.00 | % | 0.00 | % | 4.50 | % | 7/10/2020 | $ | 809,438 | 810,684 | 819,556 | ||||||||||||||||||||||||
Univar Inc. | Chemicals/Plastics | Term B Loan | Loan | 2.75 | % | 0.00 | % | 0.00 | % | 3.61 | % | 7/1/2022 | $ | 2,962,500 | 2,948,361 | 2,971,565 | ||||||||||||||||||||||||
Univision Communications Inc. | Telecommunications | Replacement First-Lien Term Loan | Loan | 3.00 | % | 1.00 | % | 0.00 | % | 4.00 | % | 3/1/2020 | $ | 2,885,666 | 2,876,319 | 2,896,949 | ||||||||||||||||||||||||
Valeant Pharmaceuticals International, Inc. | Drugs | Series D2 Term Loan B | Loan | 4.25 | % | 0.75 | % | 0.00 | % | 5.03 | % | 2/13/2019 | $ | 2,445,056 | 2,437,788 | 2,456,890 | ||||||||||||||||||||||||
Verint Systems Inc. | Services: Business | Term Loan | Loan | 2.75 | % | 0.75 | % | 0.00 | % | 3.53 | % | 9/6/2019 | $ | 1,006,278 | 1,003,396 | 1,010,554 | ||||||||||||||||||||||||
Vistra Operations Company T/L B (12/16) | Utilities | Term Loan B | Loan | 3.25 | % | 0.75 | % | 0.00 | % | 4.02 | % | 12/13/2023 | $ | 500,000 | 498,784 | 502,970 | ||||||||||||||||||||||||
Vizient Inc. | Healthcare & Pharmaceuticals | Term Loan | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 2/13/2023 | $ | 879,853 | 856,884 | 891,405 | ||||||||||||||||||||||||
Vouvray US Finance | Industrial Equipment | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 6/27/2021 | $ | 487,500 | 485,889 | 486,891 | ||||||||||||||||||||||||
Washington Inventory Service | Services: Business | U.S. Term Loan (First Lien) | Loan | 0.00 | % | 0.00 | % | 5.75 | % | 5.75 | % | 12/20/2018 | $ | 1,735,292 | 1,743,798 | 1,418,601 | ||||||||||||||||||||||||
Western Digital Corporation | High Tech Industries | Term Loan B (USD) | Loan | 3.75 | % | 0.75 | % | 0.00 | % | 4.53 | % | 5/1/2023 | $ | 1,592,000 | 1,547,312 | 1,602,396 | ||||||||||||||||||||||||
Windstream Services, LLC | Telecommunications | Term Loan B6 | Loan | 4.00 | % | 0.75 | % | 0.00 | % | 4.78 | % | 3/29/2021 | $ | 999,375 | 989,489 | 1,006,121 | ||||||||||||||||||||||||
Xerox Business Services T/L B (Conduent) | Services: Business | Term Loan | Loan | 5.50 | % | 0.75 | % | 0.00 | % | 6.28 | % | 12/7/2023 | $ | 750,000 | 737,850 | 761,955 | ||||||||||||||||||||||||
Zekelman Industries (JMC Steel) T/L (01/17) | Nonferrous Metals/Minerals | Term Loan | Loan | 3.75 | % | 1.00 | % | 0.00 | % | 4.75 | % | 6/14/2021 | $ | 500,000 | 501,250 | 506,040 | ||||||||||||||||||||||||
ZEP, Inc. | Chemicals/Plastics | Term Loan B | Loan | 4.00 | % | 1.00 | % | 0.00 | % | 5.00 | % | 6/27/2022 | $ | 2,955,000 | 2,941,390 | 2,984,550 | ||||||||||||||||||||||||
Zest Holdings 1st Lien T/L (2014 Replacement) | Healthcare & Pharmaceuticals | Term Loan | Loan | 4.75 | % | 1.00 | % | 0.00 | % | 5.75 | % | 8/17/2020 | $ | 1,000,000 | 995,523 | 1,012,500 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
| $ | 297,801,502 | $ | 292,460,648 | |||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
| Principal | Cost | Fair Value | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||
U.S. Bank Money Market (a) | $ | 13,046,555 | $ | 13,046,555 | $ | 13,046,555 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 13,046,555 | $ | 13,046,555 | $ | 13,046,555 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
(a) Included within cash and cash equivalents in Saratoga CLO's Statements of Assets and Liabilities as of February 28, 2017.
23
Note 5. Agreements and Related Party Transactions
On July 30, 2010, the Company entered into the Management Agreement with our Manager. The initial term of the Management Agreement was two years, with automatic, one-year renewals at the end of each year, subject to certain approvals by our board of directors and/or the Company's stockholders. On July 11, 2017, our board of directors approved the renewal of the Management Agreement for an additional one-year term. Pursuant to the Management Agreement, our Manager implements our business strategy on a day-to-day basis and performs certain services for us, subject to oversight by our board of directors. Our Manager is responsible for, among other duties, determining investment criteria, sourcing, analyzing and executing investments transactions, asset sales, financings and performing asset management duties. Under the Management Agreement, we have agreed to pay our Manager a management fee for investment advisory and management services consisting of a base management fee and an incentive fee.
The base management fee of 1.75% is calculated based on the average value of our gross assets (other than cash or cash equivalents, but including assets purchased with borrowed funds) at the end of the two most recently completed fiscal quarters.
The incentive fee consists of the following two parts:
The first, payable quarterly in arrears, equals 20.0% of our pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding quarter, that exceeds a 1.875% quarterly hurdle rate measured as of the end of each fiscal quarter, subject to a "catch-up" provision. Under this provision, in any fiscal quarter, our Manager receives no incentive fee unless our pre-incentive fee net investment income exceeds the hurdle rate of 1.875%. Our Manager will receive 100.0% of pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than or equal to 2.344% in any fiscal quarter; and 20.0% of the amount of the our pre-incentive fee net investment income, if any, that exceeds 2.344% in any fiscal quarter. There is no accumulation of amounts on the hurdle rate from quarter to quarter, and accordingly there is no claw back of amounts previously paid if subsequent quarters are below the quarterly hurdle rate, and there is no delay of payment if prior quarters are below the quarterly hurdle rate.
The second part of the incentive fee is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Management Agreement) and equals 20.0% of our "incentive fee capital gains," which equals our realized capital gains on a cumulative basis from May 31, 2010 through the end of the fiscal year, if any, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fee. Importantly, the capital gains portion of the incentive fee is based on realized gains and realized and unrealized losses from May 31, 2010. Therefore, realized and unrealized losses incurred prior to such time will not be taken into account when calculating the capital gains portion of the incentive fee, and our Manager will be entitled to 20.0% of incentive fee capital gains that arise after May 31, 2010. In addition, for the purpose of the "incentive fee capital gains" calculations, the cost basis for computing realized gains and losses on investments held by us as of May 31, 2010 will equal the fair value of such investments as of such date.
For the three months ended May 31, 2017 and May 31, 2016, the Company incurred $1.4 million and $1.2 million in base management fees, respectively. For the three months ended May 31, 2017 and May 31, 2016, the Company incurred $0.7 million and $0.6 million in incentive fees related to pre-incentive fee net investment income, respectively. For the three months ended May 31, 2017, there was a reduction of $0.5 million in incentive fees related to capital gains. For the three months ended May 31, 2016, the Company accrued $0.1 million in incentive fees related to capital gains. The accrual is calculated using both realized and unrealized capital gains for the period. The actual incentive fee related to capital gains will be determined and payable in arrears at the end of the fiscal year and will include only realized capital gains for the period. As of May 31, 2017, the base management fees accrual was $1.4 million and the incentive fees accrual was $2.6 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. As of February 28, 2017, the base management fees accrual was $1.2 million and the incentive fees accrual was $4.6 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities.
On July 30, 2010, the Company entered into a separate administration agreement (the "Administration Agreement") with our Manager, pursuant to which our Manager, as our administrator, has agreed to furnish us with the facilities and administrative services necessary to conduct our day-to-day operations and provide managerial assistance on our behalf to those portfolio companies to which we are required to provide such assistance. The initial term of the Administration Agreement was two years, with automatic, one-year renewals at the end of each year subject to certain approvals by our board of directors and/or our stockholders. The amount of expenses payable or reimbursable thereunder by the Company was capped at $1.0 million for the initial two year term of the
24
Administration Agreement and subsequent renewals. On July 8, 2015, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company thereunder, which had not been increased since the inception of the agreement, to $1.3 million. On October 5, 2016, our board of directors determined to increase the cap on the payment or reimbursement of expenses by the Company under the Administration Agreement, from $1.3 million to $1.5 million, effective November 1, 2016. On July 11, 2017, our board of directors approved the renewal of the Administration Agreement for an additional one-year term, and determined to increase the cap on the payment or reimbursement of expenses by the Company from $1.5 million to $1.75 million, effective August 1, 2017.
For the three months ended May 31, 2017 and May 31, 2016, we recognized $0.4 million and $0.3 million, in administrator expenses, respectively, pertaining to bookkeeping, record keeping and other administrative services provided to us in addition to our allocable portion of rent and other overhead related expenses. As of May 31, 2017, $0.3 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. As of February 28, 2017, $0.4 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. For the three months ended May 31, 2017 and May 31, 2016, the Company neither bought nor sold any investments from the Saratoga CLO.
Note 6. Borrowings
Credit Facility
As a BDC, we are only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at least 200.0% after giving effect to such leverage. The amount of leverage that we employ at any time depends on our assessment of the market and other factors at the time of any proposed borrowing.
On April 11, 2007, we entered into a $100.0 million revolving securitized credit facility (the "Revolving Facility"). On May 1, 2007, we entered into a $25.7 million term securitized credit facility (the "Term Facility" and, together with the Revolving Facility, the "Facilities"), which was fully drawn at closing. In December 2007, we consolidated the Facilities by using a draw under the Revolving Facility to repay the Term Facility. In response to the market wide decline in financial asset prices, which negatively affected the value of our portfolio, we terminated the revolving period of the Revolving Facility effective January 14, 2009 and commenced a two-year amortization period during which all principal proceeds from the collateral were used to repay outstanding borrowings. A significant percentage of our total assets had been pledged under the Revolving Facility to secure our obligations thereunder. Under the Revolving Facility, funds were borrowed from or through certain lenders and interest was payable monthly at the greater of the commercial paper rate and our lender's prime rate plus 4.00% plus a default rate of 2.00% or, if the commercial paper market was unavailable, the greater of the prevailing LIBOR rates and our lender's prime rate plus 6.00% plus a default rate of 3.00%.
In March 2009, we amended the Revolving Facility to increase the portion of the portfolio that could be invested in "CCC" rated investments in return for an increased interest rate and expedited amortization. As a result of these transactions, we expected to have additional cushion under our borrowing base under the Revolving Facility that would allow us to better manage our capital in times of declining asset prices and market dislocation.
On July 30, 2009, we exceeded the permissible borrowing limit under the Revolving Facility for 30 consecutive days, resulting in an event of default under the Revolving Facility. As a result of this event of default, our lender had the right to accelerate repayment of the outstanding indebtedness under the Revolving Facility and to foreclose and liquidate the collateral pledged thereunder. Acceleration of the outstanding indebtedness and/or liquidation of the collateral could have had a material adverse effect on our liquidity, financial condition and operations.
On July 30, 2010, we used the net proceeds from (i) the stock purchase transaction and (ii) a portion of the funds available to us under the $45.0 million senior secured revolving credit facility (the "Credit Facility") with Madison Capital Funding LLC, in each case, to pay the full amount of principal and accrued interest, including default interest, outstanding under the Revolving Facility. As a result, the Revolving Facility was terminated in connection therewith. Substantially all of our total assets, other than those held by SBIC LP, have been pledged under the Credit Facility to secure our obligations thereunder.
On February 24, 2012, we amended our senior secured revolving credit facility with Madison Capital Funding LLC to, among other things:
25
| • | expand the borrowing capacity under the Credit Facility from $40.0 million to $45.0 million; |
| • | extend the period during which we may make and repay borrowings under the Credit Facility from July 30, 2013 to February 24, 2015 (the "Revolving Period"). The Revolving Period may, upon the occurrence of an event of default, by action of the lenders or automatically, be terminated. All borrowings and other amounts payable under the Credit Facility are due and payable five years after the end of the Revolving Period; and |
| • | remove the condition that we may not acquire additional loan assets without the prior written consent of Madison Capital Funding LLC. |
On September 17, 2014, we entered into a second amendment to the Credit Facility with Madison Capital Funding LLC to, among other things:
| • | extend the commitment termination date from February 24, 2015 to September 17, 2017; |
| • | extend the maturity date of the Credit Facility from February 24, 2020 to September 17, 2022 (unless terminated sooner upon certain events); |
| • | reduce the applicable margin rate on base rate borrowings from 4.50% to 3.75%, and on LIBOR borrowings from 5.50% to 4.75%; and |
| • | reduce the floor on base rate borrowings from 3.00% to 2.25%; and on LIBOR borrowings from 2.00% to 1.25%. |
On May 18, 2017, we entered into a third amendment to the Credit Facility with Madison Capital Funding LLC to, among other things:
| • | extend the commitment termination date from September 17, 2017 to September 17, 2020; |
| • | extend the final maturity date of the Credit Facility from September 17, 2022 to September 17, 2025 (unless terminated sooner upon certain events); |
| • | reduce the floor on base rate borrowings from 2.25% to 2.0%; |
| • | reduce the floor on LIBOR borrowings from 1.25% to 1.00%; and |
| • | reduce the commitment fee rate from 0.75% to 0.50% for any period during which the ratio of advances outstanding to aggregate commitments, expressed as a percentage, is greater than or equal to 50%. |
As of May 31, 2017 and February 28, 2017, there was $24.5 million and $0.0, respectively, of outstanding borrowings under the Credit Facility and the Company was in compliance with all of the limitations and requirements of the Credit Facility. Financing costs of $3.1 million related to the Credit Facility have been capitalized and are being amortized over the term of the facility. For the three months ended May 31, 2017 and May 31, 2016, we recorded $0.1 million and $0.1 million of interest expense, respectively. For the three months ended May 31, 2017 and May 31, 2016, we recorded $0.02 million and $0.02 million of amortization of deferred financing costs related to the Credit Facility and Revolving Facility, respectively. The interest rate during the three months ended May 31, 2017 on the outstanding borrowings under the Credit Facility was 5.83%. During the three months ended May 31, 2017 and May 31, 2016, the average dollar amount of outstanding borrowings under the Credit Facility was $0.5 million and $0.0, respectively.
The Credit Facility contains limitations as to how borrowed funds may be used, such as restrictions on industry concentrations, asset size, weighted average life, currency denomination and collateral interests. The Credit Facility also includes certain requirements relating to portfolio performance, the violation of which could result in the limit of further advances and, in some cases, result in an event of default, allowing the lenders to accelerate repayment of amounts owed thereunder. The Credit Facility has an eight year term, consisting of a three year period (the "Revolving Period"), under which the Company may make and repay borrowings, and a final maturity five years from the end of the Revolving Period. Availability on the Credit Facility will be subject to a borrowing base calculation, based on, among other things, applicable advance rates (which vary from 50.0% to 75.0% of par or fair value depending on the type of loan asset) and the value of certain "eligible" loan assets included as part of the Borrowing Base. Funds may be borrowed at the greater of the prevailing LIBOR rate and 1.00%, plus an applicable margin of 4.75%. At the Company's option, funds may be borrowed based on an alternative base rate, which in no event will be less than 2.00%, and the applicable margin over such alternative base rate is 3.75%. In addition, the Company will pay the lenders a commitment fee of 0.75% per year (or 0.50% if the ratio of advances outstanding to aggregate commitments is greater than or equal to 50%) on the unused amount of the Credit Facility for the duration of the Revolving Period.
26
Our borrowing base under the Credit Facility was $45.0 million subject to the Credit Facility cap of $45.0 million at May 31, 2017. For purposes of determining the borrowing base, most assets are assigned the values set forth in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the SEC. Accordingly, the May 31, 2017 borrowing base relies upon the valuations set forth in the Annual Report on Form 10-K for the year ended February 28, 2017. The valuations presented in this Quarterly Report on Form 10-Q will not be incorporated into the borrowing base until after this Quarterly Report on Form 10-Q is filed with the SEC.
SBA Debentures
SBIC LP is able to borrow funds from the SBA against regulatory capital (which approximates equity capital) that is paid in and is subject to customary regulatory requirements including but not limited to an examination by the SBA. As of May 31, 2017, we have funded SBIC LP with $75.0 million of equity capital, and have $134.7 million of SBA-guaranteed debentures outstanding. SBA debentures are non-recourse to us, have a 10-year maturity, and may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a market-driven spread over 10-year U.S. Treasury Notes. SBA current regulations limit the amount that SBIC LP may borrow to a maximum of $150.0 million, which is up to twice its potential regulatory capital.
SBICs are designed to stimulate the flow of private equity capital to eligible small businesses. Under SBA regulations, SBICs may make loans to eligible small businesses and invest in the equity securities of small businesses. Under present SBA regulations, eligible small businesses include businesses that have a tangible net worth not exceeding $19.5 million and have average annual fully taxed net income not exceeding $6.5 million for the two most recent fiscal years. In addition, an SBIC must devote 25.0% of its investment activity to ‘‘smaller'' concerns as defined by the SBA. A smaller concern is one that has a tangible net worth not exceeding $6.0 million and has average annual fully taxed net income not exceeding $2.0 million for the two most recent fiscal years. SBA regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on such factors as the number of employees and gross sales. According to SBA regulations, SBICs may make long-term loans to small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services.
SBIC LP is subject to regulation and oversight by the SBA, including requirements with respect to maintaining certain minimum financial ratios and other covenants. Receipt of an SBIC license does not assure that SBIC LP will receive SBA-guaranteed debenture funding, which is dependent upon SBIC LP continuing to be in compliance with SBA regulations and policies. The SBA, as a creditor, will have a superior claim to SBIC LP's assets over our stockholders and debtholders in the event we liquidate SBIC LP or the SBA exercises its remedies under the SBA-guaranteed debentures issued by SBIC LP upon an event of default.
The Company received exemptive relief from the SEC to permit it to exclude the debt of SBIC LP guaranteed by the SBA from the definition of senior securities in the 200.0% asset coverage test under the 1940 Act. This allows the Company increased flexibility under the 200.0% asset coverage test by permitting it to borrow up to $150.0 million more than it would otherwise be able to absent the receipt of this exemptive relief.
As of May 31, 2017 and February 28, 2017, there was $134.7 million and $112.7 million outstanding of SBA debentures, respectively. The carrying amount of the amount outstanding of SBA debentures approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage, $4.6 million, of financing costs related to the SBA debentures, have been capitalized and are being amortized over the term of the commitment and drawdown. For the three months ended May 31, 2017 and May 31, 2016, we recorded $0.9 million and $0.8 million of interest expense related to the SBA debentures, respectively. For the three months ended May 31, 2017 and May 31, 2016, we recorded $0.1 million and $0.1 million of amortization of deferred financing costs related to the SBA debentures, respectively. The weighted average interest rate during the three months ended May 31, 2017 and May 31, 2016 on the outstanding borrowings of the SBA debentures was 3.18% and 3.09%, respectively. During the three months ended May 31, 2017 and May 31, 2016, the average dollar amount of SBA debentures outstanding was $114.2 million and $103.7 million, respectively.
In December 2015, the 2016 omnibus spending bill approved by Congress and signed into law by the President increased the amount of SBA-guaranteed debentures that affiliated SBIC funds can have outstanding from $225.0 million to $350.0 million, subject to SBA approval. SBA regulations currently limit the amount of SBA-guaranteed debentures that an SBIC may issue to $150.0 million when it has at least $75.0 million in regulatory capital. Affiliated SBICs are permitted to issue up to a combined maximum amount of $350.0 million in SBA-guaranteed debentures when they have at least $175.0 million in combined regulatory capital.
27
On April 2, 2015, the SBA issued a "green light" letter inviting the Company to continue the application process to obtain a license to form and operate its second SBIC subsidiary. On September 27, 2016, the SBA informed us that as part of their continued review of our application for a second license, and in order to ensure that they were reviewing the most current information available, we would need to update all previously submitted materials and invited us to reapply. As a result of this request, with which we are in the process of complying, the existing "green light" letter that the SBA issued to us has expired. If approved in the future, a second SBIC license would provide us an incremental source of long-term capital by permitting us to issue up to $150.0 million of additional SBA-guaranteed debentures in addition to the $150.0 million already approved under the first license.
Notes
On May 10, 2013, the Company issued $42.0 million in aggregate principal amount of 7.50% fixed-rate notes due 2020 (the "2020 Notes"). The 2020 Notes will mature on May 31, 2020, and since May 31, 2016, may be redeemed in whole or in part at any time or from time to time at the Company's option. Interest will be payable quarterly beginning August 15, 2013.
On May 17, 2013, the Company closed an additional $6.3 million in aggregate principal amount of the 2020 Notes, pursuant to the full exercise of the underwriters' option to purchase additional 2020 Notes. On May 29, 2015, the Company entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which the Company may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an At-the-Market ("ATM") offering. As of May 31, 2017, the Company sold 539,725 bonds with a principal of $13,493,125 at an average price of $25.31 for aggregate net proceeds of $13,385,766 (net of transaction costs).
On December 21, 2016, the Company issued $74.5 million in aggregate principal amount of our 6.75% fixed-rate notes due 2023 (the "2023 Notes") for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The issuance included the exercise of substantially all of the underwriters' option to purchase an additional $9.8 million aggregate principal amount of 2023 Notes within 30 days. Interest on the 2023 Notes is paid quarterly in arrears on March 15, June 15, September 15 and December 15, at a rate of 6.75% per year, beginning March 30, 2017. The 2023 Notes mature on December 30, 2023, and commencing December 21, 2019, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes, which amounted to $61.8 million, and for general corporate purposes in accordance with our investment objective and strategies. The 2023 Notes are listed on the NYSE under the trading symbol "SAB" with a par value of $25.00 per share. The remaining unamortized deferred debt financing costs of $1.5 million (including underwriting commissions and net of issuance premiums), was recorded within loss on debt extinguishment in the consolidated statements of operations in the fourth quarter of the fiscal year ended February 28, 2017, when the related 2020 Notes were extinguished. As of May 31, 2017, $2.8 million of financing costs related to the 2023 Notes have been capitalized and are being amortized over the term of the 2023 Notes.
As of May 31, 2017, the carrying amount and fair value of the 2023 Notes was $74.5 million and $78.1 million, respectively. The fair value of the 2023 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. For the three months ended May 31, 2017, we recorded $1.3 million of interest expense and $0.1 million of amortization of deferred financing costs related to the 2023 Notes. As of February 28, 2017, the carrying amount and fair value of the 2023 Notes was $74.5 million and $77.1 million, respectively. For the three months ended May 31, 2016, we recorded $1.2 million of interest expense and $0.1 million of amortization of deferred financing costs related to the 2020 Notes. During the three months ended May 31, 2017, the average dollar amount of 2023 Notes outstanding was $74.5 million. During the three months ended May 31, 2016, the average dollar amount of 2020 Notes outstanding was $61.8 million.
Note 7. Commitments and contingencies
Contractual obligations
The following table shows our payment obligations for repayment of debt and other contractual obligations at May 31, 2017:
| Payment Due by Period | ||||||||||||||||||||
| Total | Less Than 1 Year | 1 - 3 Years | 3 - 5 Years | More Than 5 Years | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
Long-Term Debt Obligations | $ | 233,611 | $ | - | $ | - | $ | - | $ | 233,611 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
28
Off-balance sheet arrangements
The Company's off-balance sheet arrangements consisted of $7.0 million and $2.0 million of unfunded commitments to provide debt financing to its portfolio companies or to fund limited partnership interests as of May 31, 2017 and February 28, 2017, respectively. Such commitments are generally up to the Company's discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company's consolidated statements of assets and liabilities and are not reflected in the Company's consolidated statements of assets and liabilities.
A summary of the composition of the unfunded commitments as of May 31, 2017 and February 28, 2017 is shown in the table below (dollars in thousands):
| As of | ||||||||
| May 31, 2017 | February 28, 2017 | |||||||
CLEO Communications Holding, LLC | $ | 5,000 | $ | - | ||||
GreyHeller LLC | 2,000 | 2,000 | ||||||
TM Restaurant Group L.L.C. | 17 | - | ||||||
|
|
|
| |||||
Total | $ | 7,017 | $ | 2,000 | ||||
|
|
|
| |||||
Note 8. Directors Fees
The independent directors receive an annual fee of $40,000. They also receive $2,500 plus reimbursement of reasonable out-of- pocket expenses incurred in connection with attending each board meeting and receive $1,000 plus reimbursement of reasonable out-of- pocket expenses incurred in connection with attending each committee meeting. In addition, the chairman of the Audit Committee receives an annual fee of $5,000 and the chairman of each other committee receives an annual fee of $2,000 for their additional services in these capacities. In addition, we have purchased directors' and officers' liability insurance on behalf of our directors and officers. Independent directors have the option to receive their directors' fees in the form of our common stock issued at a price per share equal to the greater of net asset value or the market price at the time of payment. No compensation is paid to directors who are "interested persons" of the Company (as such term is defined in the 1940 Act). For the three months ended May 31, 2017 and May 31, 2016, we incurred $0.05 million and $0.07 million for directors' fees and expenses, respectively. As of May 31, 2017 and February 28, 2017, $0.05 million and $0.05 million in directors' fees and expenses were accrued and unpaid, respectively. As of May 31, 2017, we had not issued any common stock to our directors as compensation for their services.
Note 9. Stockholders' Equity
On May 16, 2006, GSC Group, Inc. capitalized the LLC, by contributing $1,000 in exchange for 67 shares, constituting all of the issued and outstanding shares of the LLC.
On March 20, 2007, the Company issued 95,995.5 and 8,136.2 shares of common stock, priced at $150.00 per share, to GSC Group and certain individual employees of GSC Group, respectively, in exchange for the general partnership interest and a limited partnership interest in GSC Partners CDO III GP, LP, collectively valued at $15.6 million. At this time, the 6.7 shares owned by GSC Group in the LLC were exchanged for 6.7 shares of the Company.
On March 28, 2007, the Company completed its IPO of 725,000 shares of common stock, priced at $150.00 per share, before underwriting discounts and commissions. Total proceeds received from the IPO, net of $7.1 million in underwriter's discount and commissions, and $1.0 million in offering costs, were $100.7 million.
On November 13, 2009, we declared a dividend of $18.25 per share payable on December 31, 2009. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to $2.1 million or $2.50 per share. Based on shareholder elections, the dividend consisted of $2.1 million in cash and 864,872.5 of newly issued shares of common stock.
On July 30, 2010, our Manager and its affiliates purchased 986,842 shares of common stock at $15.20 per share. Total proceeds received from this sale were $15.0 million.
On August 12, 2010, we effected a one-for-ten reverse stock split of our outstanding common stock. As a result of the reverse stock split, every ten shares of our common stock were converted into one share of our common stock. Any fractional shares received as a result of the reverse stock split were redeemed for cash. The total cash payment in lieu of shares was $230. Immediately after the reverse stock split, we had 2,680,842 shares of our common stock outstanding.
29
On November 12, 2010, we declared a dividend of $4.40 per share payable on December 29, 2010. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to approximately $1.2 million or $0.44 per share. Based on shareholder elections, the dividend consisted of approximately $1.2 million in cash and 596,235 shares of common stock.
On November 15, 2011, we declared a dividend of $3.00 per share payable on December 30, 2011. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to approximately $2.0 million or $0.60 per share. Based on shareholder elections, the dividend consisted of approximately $2.0 million in cash and 599,584 shares of common stock.
On November 9, 2012, the Company declared a dividend of $4.25 per share payable on December 31, 2012. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to approximately $3.3 million or $0.85 per share. Based on shareholder elections, the dividend consisted of approximately $3.3 million in cash and 853,455 shares of common stock.
On October 30, 2013, the Company declared a dividend of $2.65 per share payable on December 27, 2013. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to approximately $2.5 million or $0.53 per share. Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 649,500 shares of common stock.
On September 24, 2014, the Company declared a dividend of $0.18 per share payable on November 28, 2014. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock pursuant to the Company's DRIP. Based on shareholder elections, the dividend consisted of approximately $0.6 million in cash and 22,283 newly issued shares of common stock.
On September 24, 2014, the Company declared a dividend of $0.22 per share payable on February 27, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $0.8 million in cash and 26,858 newly issued shares of common stock.
On April 9, 2015, the Company declared a dividend of $0.27 per share payable on May 29, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $0.9 million in cash and 33,766 newly issued shares of common stock.
On May 14, 2015, the Company declared a special dividend of $1.00 per share payable on June 5, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 126,230 newly issued shares of common stock.
On July 8, 2015, the Company declared a dividend of $0.33 per share payable on August 31, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 47,861 newly issued shares of common stock.
On October 7, 2015, the Company declared a dividend of $0.36 per share payable on November 30, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 61,029 newly issued shares of common stock.
On January 12, 2016, the Company declared a dividend of $0.40 per share payable on February 29, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.4 million in cash and 66,765 newly issued shares of common stock.
30
On March 31, 2016, the Company declared a dividend of $0.41 per share payable on April 27, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 56,728 newly issued shares of common stock.
On July 7, 2016, the Company declared a dividend of $0.43 per share payable on August 9, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,167 newly issued shares of common stock.
On August 8, 2016, the Company declared a special dividend of $0.20 per share payable on September 5, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $0.7 million in cash and 24,786 newly issued shares of common stock.
On October 5, 2016, the Company declared a dividend of $0.44 per share payable on November 9, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,548 newly issued shares of common stock.
On January 12, 2017, the Company declared a dividend of $0.45 per share payable on February 9, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.6 million in cash and 50,453 newly issued shares of common stock.
On February 28, 2017, the Company declared a dividend of $0.46 per share payable on March 28, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.0 million in cash and 29,096 newly issued shares of common stock.
On September 24, 2014, the Company announced the approval of an open market share repurchase plan that allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements. On October 7, 2015, the Company's board of directors extended the open market share repurchase plan for another year and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 400,000 shares of its common stock. On October 5, 2016, the Company's board of directors extended the open market share repurchase plan for another year to October 15, 2017 and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 600,000 shares of its common stock. As of May 31, 2017, the Company purchased 218,491 shares of common stock, at the average price of $16.87 for approximately $3.7 million pursuant to this repurchase plan.
On March 16, 2017, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offer for sale, from time to time, up to $30.0 million of our common stock through an ATM offering. As of May 31, 2017, the Company sold 60,779 shares for gross proceeds of $1.4 million at an average price of $22.49 for aggregate net proceeds of $1.3 million (net of transaction costs).
Note 10. Summarized Financial Information of Our Unconsolidated Subsidiary
In accordance with SEC Regulation S-X Rules 3-09 and 4-08(g), the Company must determine which of its unconsolidated controlled portfolio companies, if any, are considered "significant subsidiaries." After performing this analysis, the Company determined that one of its portfolio companies, Easy Ice, LLC ("Easy Ice") is not a significant subsidiary for the three months ended May 31, 2017 under at least one of the significance conditions of Rule 4-08(g) of SEC Regulation S-X, but was a significant subsidiary for the year ended February 28, 2017. Accordingly, audited financial information for the year ended December 31, 2016 and as of December 31, 2016 has been included as follows (in thousands):
31
| As of | ||||
Balance Sheet – Easy Ice, LLC | December 31, 2016 | |||
Current assets | $ | 1,058 | ||
Noncurrent assets | $ | 18,245 | ||
Current liabilities | $ | 3,473 | ||
Noncurrent liabilities | $ | 23,113 | ||
Total deficit | $ | (7,283 | ) | |
| For the year ended | ||||
Statement of Operations – Easy Ice, LLC | December 31, 2016 | |||
Rental income | $ | 14,463 | ||
Rental expenses | $ | 8,463 | ||
Gross margin | $ | 6,000 | ||
Operating expenses | $ | 5,123 | ||
Income from operations | $ | 877 | ||
Net loss | $ | (1,356 | ) | |
Note 11. Earnings Per Share
In accordance with the provisions of FASB ASC 260, "Earnings per Share" ("ASC 260"), basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.
The following information sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations for the three months ended May 31, 2017 and May 31, 2016 (dollars in thousands except share and per share amounts):
| For the three months ended | ||||||||
Basic and diluted | May 31, 2017 | May 31, 2016 | ||||||
Net increase in net assets from operations | $ | 1,014 | $ | 3,288 | ||||
Weighted average common shares outstanding | 5,861,654 | 5,737,496 | ||||||
Weighted average earnings per common share | $ | 0.17 | $ | 0.57 | ||||
Note 12. Dividend
On February 28, 2017, the Company declared a dividend of $0.46 per share which was paid on March 28, 2017, to common stockholders of record as of March 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP.
Based on shareholder elections, the dividend consisted of approximately $2.0 million in cash and 29,096 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.38 per share, which equaled the volume weighted average trading price per share of the common stock on March 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2017.
The following table summarizes dividends declared for the three months ended May 31, 2017 (dollars in thousands except per share amounts):
32
Date Declared | Record Date | Payment Date | Amount Per Share* | Total Amount | ||||||||||||
February 28, 2017 | March 15, 2017 | March 28, 2017 | $ | 0.46 | $ | 2,666 | ||||||||||
|
|
|
| |||||||||||||
Total dividends declared | $ | 0.46 | $ | 2,666 | ||||||||||||
|
|
|
| |||||||||||||
| * | Amount per share is calculated based on the number of shares outstanding at the date of declaration. |
The following table summarizes dividends declared for the three months ended May 31, 2016 (dollars in thousands except per share amounts):
Date Declared | Record Date | Payment Date | Amount Per Share* | Total Amount | ||||||||||||
March 31, 2016 | April 15, 2016 | April 27, 2016 | $ | 0.41 | $ | 2,346 | ||||||||||
|
|
|
| |||||||||||||
Total dividends declared | $ | 0.41 | $ | 2,346 | ||||||||||||
|
|
|
| |||||||||||||
| * | Amount per share is calculated based on the number of shares outstanding at the date of declaration. |
Note 13. Financial Highlights
The following is a schedule of financial highlights for the three months ended May 31, 2017 and May 31, 2016:
| May 31, 2017 | May 31, 2016 | |||||||
Per share data: | ||||||||
Net asset value at beginning of period | $ | 21.97 | $ | 22.06 | ||||
Net investment income(1) | 0.60 | 0.44 | ||||||
Net realized and unrealized gains and losses on investments | (0.43 | ) | 0.13 | |||||
|
|
|
| |||||
Net increase in net assets from operations | 0.17 | 0.57 | ||||||
Distributions declared from net investment income | (0.46 | ) | (0.41 | ) | ||||
|
|
|
| |||||
Total distributions to stockholders | (0.46 | ) | (0.41 | ) | ||||
Dilution(4) | 0.01 | (0.11 | ) | |||||
Net asset value at end of period | $ | 21.69 | $ | 22.11 | ||||
Net assets at end of period | $ | 127,608,653 | $ | 127,128,868 | ||||
Shares outstanding at end of period | 5,884,475 | 5,750,222 | ||||||
Per share market value at end of period | $ | 22.13 | $ | 16.39 | ||||
Total return based on market value(2) | (0.59 | )% | 19.71 | % | ||||
Total return based on net asset value(3) | 0.85 | % | 4.10 | % | ||||
Ratio/Supplemental data: | ||||||||
Ratio of net investment income to average net assets(8) | 11.29 | % | 7.98 | % | ||||
Ratio of operating expenses to average net assets(7) | 7.77 | % | 7.15 | % | ||||
Ratio of incentive management fees to average net assets(6) | 0.14 | % | 0.58 | % | ||||
Ratio of interest and debt financing expenses to average net assets(7) | 7.84 | % | 7.44 | % | ||||
Ratio of total expenses to average net assets(8) | 15.75 | % | 15.17 | % | ||||
Portfolio turnover rate(5) | 2.00 | % | N/A | |||||
Asset coverage ratio per unit(6) | 2,290 | 3,057 | ||||||
Average market value per unit: | ||||||||
Credit Facility(9) | N/A | N/A | ||||||
SBA Debentures(9) | N/A | N/A | ||||||
2020 Notes | N/A | 25.02 | ||||||
2023 Notes | 26.04 | N/A | ||||||
33
| (1) | Net investment income per share is calculated using the weighted average shares outstanding during the period. |
| (2) | Total investment return is calculated assuming a purchase of common shares at the current market value on the first day and a sale at the current market value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company's DRIP. Total investment return does not reflect brokerage commissions. Total investment returns covering less than a full period are not annualized. |
| (3) | Total investment return is calculated assuming a purchase of common shares 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. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company's DRIP. Total investment return does not reflect brokerage commissions. |
| (4) | Represents the dilutive effect of issuing common stock below net asset value per share during the period in connection with the satisfaction of the Company's annual RIC distribution requirement. See Note 12, Dividend. |
| (5) | Portfolio turnover rate is calculated using the lesser of year-to-date sales or year-to-date purchases over the average of the invested assets at fair value. |
| (6) | Ratios are not annualized. |
| (7) | Ratios are annualized. |
| (8) | Ratios are annualized. Incentive management fees included within the ratio are not annualized. |
| (9) | The Credit Facility and SBA Debentures are not registered for public trading. |
Note 14. Subsequent Events
The Company has evaluated subsequent events through the filing of this Form 10-Q and determined that there have been no events that have occurred that would require adjustments to the Company's disclosures in the consolidated financial statements except for the following:
On May 30, 2017, the Company declared a dividend of $0.47 per share payable on June 27, 2017, to common stockholders of record on June 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant the Company's DRIP. Based on shareholder elections, the dividend consisted of approximately $2.3 million in cash and 26,222 newly issued shares of com