Commission File Number | Exact name of registrant as specified in its charter, address of principal executive offices, telephone numbers and states or other jurisdictions of incorporation or organization | I.R.S. Employer Identification Number | ||
814-00832 | New Mountain Finance Corporation | 27-2978010 | ||
787 Seventh Avenue, 48th Floor New York, New York 10019 Telephone: (212) 720-0300 State of Incorporation: Delaware |
Large accelerated filer ý | Accelerated filer o | ||
Non-accelerated filer o | Smaller reporting company o |
Description | Shares as of November 4, 2015 | |
Common stock, $0.01 par value | 64,005,387 |
PAGE | ||
Item 1. | Financial Statements |
September 30, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Investments at fair value | |||||||
Non-controlled/non-affiliated investments (cost of $1,361,806 and $1,422,891, respectively) | $ | 1,343,861 | $ | 1,402,210 | |||
Non-controlled/affiliated investments (cost $88,532 and $23,000, respectively) | 88,446 | 22,461 | |||||
Controlled investments (cost $41,129 and $0, respectively) | 45,673 | — | |||||
Total investments at fair value (cost $1,491,467 and $1,445,891, respectively) | 1,477,980 | 1,424,671 | |||||
Securities purchased under collateralized agreements to resell | 30,000 | 30,000 | |||||
Cash and cash equivalents | 24,612 | 23,445 | |||||
Interest and dividend receivable | 15,900 | 11,744 | |||||
Deferred financing costs (net of accumulated amortization of $8,047 and $5,867, respectively) | 14,429 | 14,052 | |||||
Receivable from unsettled securities sold | 4,669 | 8,912 | |||||
Receivable from affiliates | 371 | 490 | |||||
Other assets | 2,014 | 1,606 | |||||
Total assets | $ | 1,569,975 | $ | 1,514,920 | |||
Liabilities | |||||||
Holdings Credit Facility | $ | 385,538 | $ | 468,108 | |||
Convertible Notes | 115,000 | 115,000 | |||||
SBA-guaranteed debentures | 103,795 | 37,500 | |||||
NMFC Credit Facility | 67,500 | 50,000 | |||||
Management fee payable | 5,136 | 5,144 | |||||
Incentive fee payable | 5,034 | 4,803 | |||||
Interest payable | 2,719 | 1,352 | |||||
Payable for unsettled securities purchased | 2,428 | 26,460 | |||||
Deferred tax liability | 1,710 | 493 | |||||
Payable to affiliates | 134 | 822 | |||||
Other liabilities | 2,284 | 3,068 | |||||
Total liabilities | 691,278 | 712,750 | |||||
Commitments and contingencies (see Note 9) | |||||||
Net assets | |||||||
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued | — | — | |||||
Common stock, par value $0.01 per share, 100,000,000 shares authorized, and 64,005,387 and 57,997,890 shares issued and outstanding, respectively | 640 | 580 | |||||
Paid in capital in excess of par | 899,854 | 817,129 | |||||
Accumulated undistributed net investment income | 3,264 | 2,530 | |||||
Accumulated undistributed net realized gains on investments | 623 | 14,131 | |||||
Net unrealized (depreciation) appreciation on investments (net of provision for taxes of $1,710 and $493, respectively) | (25,684 | ) | (32,200 | ) | |||
Total net assets | $ | 878,697 | $ | 802,170 | |||
Total liabilities and net assets | $ | 1,569,975 | $ | 1,514,920 | |||
Number of shares outstanding | 64,005,387 | 57,997,890 | |||||
Net asset value per share | $ | 13.73 | $ | 13.83 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Investment income(1) | |||||||||||||||
From non-controlled/non-affiliated investments: | |||||||||||||||
Interest income | $ | 31,628 | $ | 32,353 | $ | 97,249 | $ | 51,141 | |||||||
Dividend income | (509 | ) | 214 | (407 | ) | 1,186 | |||||||||
Other income | 1,619 | 1,667 | 3,496 | 2,372 | |||||||||||
From non-controlled/affiliated investments: | |||||||||||||||
Interest income | 1,594 | — | 3,820 | — | |||||||||||
Dividend income | 892 | 297 | 2,701 | 297 | |||||||||||
Other income | 1,020 | 175 | 1,642 | 179 | |||||||||||
From controlled investments: | |||||||||||||||
Interest income | 517 | — | 1,487 | — | |||||||||||
Dividend income | 673 | — | 1,864 | — | |||||||||||
Other income | 13 | — | 36 | — | |||||||||||
Investment income allocated from New Mountain Finance Holdings, L.L.C.(2) | |||||||||||||||
Interest income | — | — | — | 40,515 | |||||||||||
Dividend income | — | — | — | 2,368 | |||||||||||
Other income | — | — | — | 795 | |||||||||||
Total investment income | 37,447 | 34,706 | 111,888 | 98,853 | |||||||||||
Expenses | |||||||||||||||
Incentive fee(1) | 5,034 | 4,520 | 14,969 | 7,267 | |||||||||||
Capital gains incentive fee(1) | (490 | ) | (2,667 | ) | — | (1,904 | ) | ||||||||
Total incentive fees(1) | 4,544 | 1,853 | 14,969 | 5,363 | |||||||||||
Management fee(1) | 6,373 | 5,021 | 19,039 | 7,763 | |||||||||||
Interest and other financing expenses(1) | 5,788 | 5,237 | 16,863 | 7,796 | |||||||||||
Professional fees(1) | 808 | 890 | 2,456 | 1,530 | |||||||||||
Administrative expenses(1) | 647 | 549 | 1,804 | 909 | |||||||||||
Other general and administrative expenses(1) | 370 | 448 | 1,252 | 687 | |||||||||||
Net expenses allocated from New Mountain Finance Holdings, L.L.C. (2) | — | — | — | 20,808 | |||||||||||
Total expenses | 18,530 | 13,998 | 56,383 | 44,856 | |||||||||||
Less: management fee waived (see Note 5) (1) | (1,237 | ) | — | (3,866 | ) | — | |||||||||
Less: expenses waived and reimbursed (see Note 5) (1) | (333 | ) | (322 | ) | (733 | ) | (380 | ) | |||||||
Net expenses | 16,960 | 13,676 | 51,784 | 44,476 | |||||||||||
Net investment income before income taxes | 20,487 | 21,030 | 60,104 | 54,377 | |||||||||||
Income tax (benefit) expense(1) | (172 | ) | 230 | 130 | 230 | ||||||||||
Net investment income | 20,659 | 20,800 | 59,974 | 54,147 | |||||||||||
Net realized (losses) gains: | |||||||||||||||
Non-controlled/non-affiliated investments(1) | (37 | ) | 768 | (13,508 | ) | (299 | ) | ||||||||
Investments allocated from New Mountain Finance Holdings, L.L.C. (2) | — | — | — | 8,568 | |||||||||||
Net change in unrealized (depreciation) appreciation: | |||||||||||||||
Non-controlled/non-affiliated investments(1) | (8,360 | ) | (14,220 | ) | 2,148 | (8,512 | ) | ||||||||
Non-controlled/affiliated investments(1) | 313 | (52 | ) | 1,041 | (52 | ) | |||||||||
Controlled investments(1) | (2,190 | ) | — | 4,544 | — | ||||||||||
Investments allocated from New Mountain Finance Holdings, L.L.C. (2) | — | — | — | 940 | |||||||||||
(Provision) benefit for taxes(1) | (581 | ) | 115 | (1,217 | ) | (271 | ) | ||||||||
Net increase in net assets resulting from operations | 9,804 | 7,411 | 52,982 | 54,521 | |||||||||||
Basic earnings per share | $ | 0.17 | $ | 0.14 | $ | 0.91 | $ | 1.09 | |||||||
Weighted average shares of common stock outstanding - basic (See Note 11) | 58,725,338 | 52,071,071 | 58,269,543 | 50,262,656 | |||||||||||
Diluted earnings per share | $ | 0.17 | $ | 0.14 | $ | 0.86 | $ | 1.05 | |||||||
Weighted average shares of common stock outstanding - diluted (See Note 11) | 66,002,469 | 59,290,154 | 65,514,142 | 53,594,541 | |||||||||||
Dividends declared and paid per share | $ | 0.34 | $ | 0.46 | $ | 1.02 | $ | 1.14 |
(1) | For the nine months ended September 30, 2014, the amounts reported relate to the period from May 8, 2014 to September 30, 2014. |
(2) | For the nine months ended September 30, 2014, the amounts reported relate to the period from January 1, 2014 to May 7, 2014. |
Nine Months Ended | |||||||
September 30, 2015 | September 30, 2014 | ||||||
Increase (decrease) in net assets resulting from operations: | |||||||
Net investment income(1) | $ | 59,974 | $ | 31,277 | |||
Net investment income allocated from New Mountain Finance Holdings, L.L.C. (2) | — | 22,870 | |||||
Net realized losses on investments(1) | (13,508 | ) | (299 | ) | |||
Net realized gains on investments allocated from New Mountain Finance Holdings, L.L.C. (2) | — | 8,568 | |||||
Net change in unrealized appreciation (depreciation) of investments(1) | 7,733 | (8,564 | ) | ||||
Net change in unrealized appreciation (depreciation) of investments allocated from New Mountain Finance Holdings, L.L.C.(2) | — | 940 | |||||
Provision for taxes(1) | (1,217 | ) | (271 | ) | |||
Net increase in net assets resulting from operations | 52,982 | 54,521 | |||||
Capital transactions | |||||||
Net proceeds from shares sold | 79,415 | 58,644 | |||||
Deferred offering costs(1) | (285 | ) | (126 | ) | |||
Deferred offering costs allocated from New Mountain Finance Holdings, L.L.C.(2) | — | (250 | ) | ||||
Value of shares issued for exchanged units | — | 38,840 | |||||
Dividends declared to stockholders from net investment income | (59,240 | ) | (51,673 | ) | |||
Dividends declared to stockholders from net realized gains | — | (6,247 | ) | ||||
Reinvestment of dividends | 3,655 | 3,641 | |||||
Total net increase in net assets resulting from capital transactions | 23,545 | 42,829 | |||||
Net increase in net assets | 76,527 | 97,350 | |||||
Net assets at the beginning of the period | 802,170 | 650,107 | |||||
Net assets at the end of the period | $ | 878,697 | $ | 747,457 |
(1) | For the nine months ended September 30, 2014, the amounts reported relate to the period from May 8, 2014 to September 30, 2014. |
(2) | For the nine months ended September 30, 2014, the amounts reported relate to the period from January 1, 2014 to May 7, 2014. |
Nine Months Ended | |||||||
September 30, 2015 | September 30, 2014 | ||||||
Cash flows from operating activities | |||||||
Net increase in net assets resulting from operations | $ | 52,982 | $ | 54,521 | |||
Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash (used in) provided by operating activities: | |||||||
Net investment income allocated from New Mountain Finance Holdings, L.L.C.(2) | — | (22,870 | ) | ||||
Net realized losses on investments(1) | 13,508 | 299 | |||||
Net realized gains on investments allocated from New Mountain Finance Holdings, L.L.C. (2) | — | (8,568 | ) | ||||
Net change in unrealized (appreciation) depreciation of investments(1) | (7,733 | ) | 8,564 | ||||
Net change in unrealized (appreciation) depreciation of investments allocated from New Mountain Finance Holdings, L.L.C. (2) | — | (940 | ) | ||||
Amortization of purchase discount(1) | (1,787 | ) | (1,073 | ) | |||
Amortization of deferred financing costs(1) | 2,180 | 1,029 | |||||
Non-cash investment income(1) | (4,374 | ) | (1,029 | ) | |||
(Increase) decrease in operating assets: | |||||||
Cash and cash equivalents from New Mountain Finance Holdings, L.L.C.(3) | — | 957 | |||||
Restricted cash and cash equivalents(1) | — | (1,784 | ) | ||||
Purchase of investments and delayed draw facilities(1) | (397,745 | ) | (325,038 | ) | |||
Proceeds from sales and paydowns of investments(1) | 344,753 | 159,792 | |||||
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities(1) | 157 | 29 | |||||
Cash paid for purchase of drawn portion of revolving credit facilities(1) | (3,227 | ) | (2,548 | ) | |||
Cash paid on drawn revolvers(1) | (1,160 | ) | — | ||||
Cash repayments on drawn revolvers(1) | 4,299 | 380 | |||||
Interest and dividend receivable(1) | (4,156 | ) | (1,934 | ) | |||
Receivable from unsettled securities sold(1) | 4,243 | — | |||||
Receivable from affiliates(1) | 119 | 201 | |||||
Other assets(1) | (329 | ) | (167 | ) | |||
Purchase of investment in New Mountain Finance Holdings, L.L.C.(2) | — | (58,644 | ) | ||||
Distributions from New Mountain Finance Holdings, L.L.C.(2) | — | 15,247 | |||||
Increase (decrease) in operating liabilities: | |||||||
Management fee payable(1) | (8 | ) | (1,034 | ) | |||
Incentive fee payable(1) | 231 | (1,805 | ) | ||||
Interest payable(1) | 1,367 | 2,690 | |||||
Payable for unsettled securities purchased(1) | (24,032 | ) | 15,816 | ||||
Deferred tax liability(1) | 1,217 | 271 | |||||
Payable to affiliates(1) | (688 | ) | 21 | ||||
Capital gains incentive fee payable(1) | — | (1,904 | ) | ||||
Other liabilities(1) | (735 | ) | 1,859 | ||||
Net cash flows used in operating activities | (20,918 | ) | (167,662 | ) | |||
Cash flows from financing activities | |||||||
Net proceeds from shares sold | 79,415 | 58,644 | |||||
Dividends paid | (55,585 | ) | (54,279 | ) | |||
Offering costs paid(1) | (141 | ) | (264 | ) | |||
Proceeds from Holdings Credit Facility(1) | 246,330 | 247,830 | |||||
Repayment of Holdings Credit Facility(1) | (328,900 | ) | (188,100 | ) | |||
Proceeds from Convertible Notes(1) | — | 115,000 | |||||
Proceeds from SBA-guaranteed debentures(1) | 66,295 | — | |||||
Proceeds from NMFC Credit Facility(1) | 101,300 | 22,000 | |||||
Repayment of NMFC Credit Facility(1) | (83,800 | ) | — | ||||
Proceeds from SLF Credit Facility | — | 19,867 | |||||
Repayment of SLF Credit Facility | — | (30,000 | ) | ||||
Deferred financing costs paid(1) | (2,829 | ) | (5,179 | ) | |||
Net cash flows provided by financing activities | 22,085 | 185,519 | |||||
Net increase in cash and cash equivalents | 1,167 | 17,857 | |||||
Cash and cash equivalents at the beginning of the period | 23,445 | — | |||||
Cash and cash equivalents at the end of the period | $ | 24,612 | $ | 17,857 | |||
Supplemental disclosure of cash flow information | |||||||
Cash interest paid | $ | 12,764 | $ | 3,866 | |||
Income taxes paid | 151 | — | |||||
Non-cash operating activities: | |||||||
Non-cash activity on investments | $ | 60,652 | $ | — | |||
Non-cash financing activities: | |||||||
New Mountain Finance AIV Holdings Corporation exchange of New Mountain Finance Holdings, L.L.C. units for shares | $ | — | $ | 38,840 | |||
Value of shares issued in connection with dividend reinvestment plan | 3,655 | 3,641 | |||||
Accrual for offering costs(1) | 739 | 729 | |||||
Accrual for deferred financing costs(1) | 103 | 576 | |||||
Deferred offering costs allocated from New Mountain Finance Holdings, L.L.C.(2) | — | (250 | ) |
(1) | For the nine months ended September 30, 2014, the amounts reported relate to the period from May 8, 2014 to September 30, 2014. |
(2) | For the nine months ended September 30, 2014, the amounts reported relate to the period from January 1, 2014 to May 7, 2014. |
(3) | Represents the cash and cash equivalent balance of New Mountain Finance Holdings, L.L.C.’s at the date of restructuring. See Note 1, Formation and Business Purpose. |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate | Maturity Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | ||||||||||||||
Non-Controlled/Non-Affiliated Investments | |||||||||||||||||||||
Funded Debt Investments - Australia | |||||||||||||||||||||
Project Sunshine IV Pty Ltd** | |||||||||||||||||||||
Media | First lien (2) | 8.00% (Base Rate + 7.00%) | 9/23/2019 | $ | 11,689 | $ | 11,634 | $ | 11,733 | 1.34 | % | ||||||||||
Total Funded Debt Investments - Australia | $ | 11,689 | $ | 11,634 | $ | 11,733 | 1.34 | % | |||||||||||||
Funded Debt Investments - Luxembourg | |||||||||||||||||||||
Pinnacle Holdco S.à.r.l. / Pinnacle (US) Acquisition Co Limited** | |||||||||||||||||||||
Software | Second lien (2) | 10.50% (Base Rate + 9.25%) | 7/30/2020 | $ | 24,630 | $ | 24,333 | $ | 22,044 | ||||||||||||
Second lien (3) | 10.50% (Base Rate + 9.25%) | 7/30/2020 | 8,204 | 8,323 | 7,342 | ||||||||||||||||
32,834 | 32,656 | 29,386 | 3.34 | % | |||||||||||||||||
Total Funded Debt Investments - Luxembourg | $ | 32,834 | $ | 32,656 | $ | 29,386 | 3.34 | % | |||||||||||||
Funded Debt Investments - Netherlands | |||||||||||||||||||||
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC)** | |||||||||||||||||||||
Software | Second lien (3) | 10.13% (Base Rate + 9.13%) | 2/17/2023 | $ | 10,000 | $ | 9,286 | $ | 9,050 | 1.03 | % | ||||||||||
Total Funded Debt Investments - Netherlands | $ | 10,000 | $ | 9,286 | $ | 9,050 | 1.03 | % | |||||||||||||
Funded Debt Investments - United Kingdom | |||||||||||||||||||||
Air Newco LLC** | |||||||||||||||||||||
Software | Second lien (3) | 10.50% (Base Rate + 9.50%) | 1/31/2023 | $ | 32,500 | $ | 31,718 | $ | 31,525 | 3.59 | % | ||||||||||
Total Funded Debt Investments - United Kingdom | $ | 32,500 | $ | 31,718 | $ | 31,525 | 3.59 | % | |||||||||||||
Funded Debt Investments - United States | |||||||||||||||||||||
TIBCO Software Inc. | |||||||||||||||||||||
Software | First lien (2) | 6.50% (Base Rate + 5.50%) | 12/4/2020 | $ | 29,850 | $ | 28,525 | $ | 29,794 | ||||||||||||
Subordinated (3) | 11.38% | 12/1/2021 | 15,000 | 14,600 | 15,019 | ||||||||||||||||
44,850 | 43,125 | 44,813 | 5.10 | % | |||||||||||||||||
Deltek, Inc. | |||||||||||||||||||||
Software | Second lien (3) | 9.50% (Base Rate + 8.50%) | 6/26/2023 | 21,000 | 20,967 | 21,114 | |||||||||||||||
Second lien (2) | 9.50% (Base Rate + 8.50%) | 6/26/2023 | 20,000 | 19,615 | 20,108 | ||||||||||||||||
41,000 | 40,582 | 41,222 | 4.69 | % | |||||||||||||||||
Kronos Incorporated | |||||||||||||||||||||
Software | Second lien (2) | 9.75% (Base Rate + 8.50%) | 4/30/2020 | 32,641 | 32,434 | 33,518 | |||||||||||||||
Second lien (3) | 9.75% (Base Rate + 8.50%) | 4/30/2020 | 5,000 | 4,959 | 5,134 | ||||||||||||||||
37,641 | 37,393 | 38,652 | 4.40 | % | |||||||||||||||||
Tolt Solutions, Inc. (15) | |||||||||||||||||||||
Business Services | First lien (2) | 7.00% (Base Rate + 6.00%) | 3/7/2019 | 18,255 | 18,255 | 18,255 | |||||||||||||||
First lien (2) | 12.00% (Base Rate + 11.00%) | 3/7/2019 | 18,800 | 18,800 | 18,800 | ||||||||||||||||
37,055 | 37,055 | 37,055 | 4.22 | % | |||||||||||||||||
Hill International, Inc. | |||||||||||||||||||||
Business Services | First lien (2) | 7.75% (Base Rate + 6.75%) | 9/28/2020 | 34,650 | 34,351 | 34,433 | 3.92 | % | |||||||||||||
CRGT Inc. | |||||||||||||||||||||
Federal Services | First lien (2) | 7.50% (Base Rate + 6.50%) | 12/19/2020 | 33,474 | 33,232 | 33,390 | 3.80 | % | |||||||||||||
SRA International, Inc. | |||||||||||||||||||||
Federal Services | First lien (2) | 6.50% (Base Rate + 5.25%) | 7/20/2018 | 31,765 | 31,196 | 31,884 | 3.63 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate | Maturity Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | ||||||||||||||
TASC, Inc. | |||||||||||||||||||||
Federal Services | First lien (2) | 7.00% (Base Rate + 6.00%) | 5/22/2020 | $ | 29,323 | $ | 28,983 | $ | 29,433 | ||||||||||||
Second lien (3) | 12.00% | 5/21/2021 | 2,000 | 1,963 | 2,070 | ||||||||||||||||
31,323 | 30,946 | 31,503 | 3.59 | % | |||||||||||||||||
Navex Global, Inc. | |||||||||||||||||||||
Software | First lien (4) | 5.75% (Base Rate + 4.75%) | 11/19/2021 | 10,468 | 10,373 | 10,363 | |||||||||||||||
First lien (2) | 5.75% (Base Rate + 4.75%) | 11/19/2021 | 4,420 | 4,380 | 4,376 | ||||||||||||||||
Second lien (4) | 9.75% (Base Rate + 8.75%) | 11/18/2022 | 11,953 | 11,842 | 11,774 | ||||||||||||||||
Second lien (3) | 9.75% (Base Rate + 8.75%) | 11/18/2022 | 5,047 | 5,000 | 4,971 | ||||||||||||||||
31,888 | 31,595 | 31,484 | 3.58 | % | |||||||||||||||||
Rocket Software, Inc. | |||||||||||||||||||||
Software | Second lien (2) | 10.25% (Base Rate + 8.75%) | 2/8/2019 | 30,875 | 30,774 | 30,901 | 3.52 | % | |||||||||||||
Physio-Control International, Inc. | |||||||||||||||||||||
Healthcare Products | Second lien (2) | 10.00% (Base Rate + 9.00%) | 6/5/2023 | 30,000 | 29,415 | 29,962 | 3.41 | % | |||||||||||||
Valet Waste Holdings, Inc. | |||||||||||||||||||||
Business Services | First lien (2) | 8.00% (Base Rate + 7.00%) | 9/24/2021 | 30,000 | 29,626 | 29,625 | 3.37 | % | |||||||||||||
Aderant North America, Inc. | |||||||||||||||||||||
Software | Second lien (2) | 10.00% (Base Rate + 8.75%) | 6/20/2019 | 24,000 | 23,785 | 23,970 | |||||||||||||||
Second lien (3) | 10.00% (Base Rate + 8.75%) | 6/20/2019 | 5,000 | 5,074 | 4,994 | ||||||||||||||||
29,000 | 28,859 | 28,964 | 3.30 | % | |||||||||||||||||
Ascend Learning, LLC | |||||||||||||||||||||
Education | Second lien (3) | 9.50% (Base Rate + 8.50%) | 11/30/2020 | 29,000 | 28,892 | 28,782 | 3.27 | % | |||||||||||||
CompassLearning, Inc. (14) | |||||||||||||||||||||
Education | First lien (2) | 8.00% (Base Rate + 6.75%) | 11/26/2018 | 30,000 | 29,494 | 28,528 | 3.25 | % | |||||||||||||
Transtar Holding Company | |||||||||||||||||||||
Distribution & Logistics | Second lien (2) | 10.00% (Base Rate + 8.75%) | 10/9/2019 | 28,300 | 27,957 | 27,451 | 3.12 | % | |||||||||||||
Ryan, LLC | |||||||||||||||||||||
Business Services | First lien (2) | 6.75% (Base Rate + 5.75%) | 8/7/2020 | 27,650 | 27,245 | 27,408 | 3.12 | % | |||||||||||||
McGraw-Hill Global Education Holdings, LLC | |||||||||||||||||||||
Education | First lien (2)(9) | 9.75% | 4/1/2021 | 24,500 | 24,374 | 26,889 | 3.06 | % | |||||||||||||
KeyPoint Government Solutions, Inc. | |||||||||||||||||||||
Federal Services | First lien (2) | 7.75% (Base Rate + 6.50%) | 11/13/2017 | 26,743 | 26,463 | 26,609 | 3.03 | % | |||||||||||||
Pelican Products, Inc. | |||||||||||||||||||||
Business Products | Second lien (3) | 9.25% (Base Rate + 8.25%) | 4/9/2021 | 15,500 | 15,522 | 15,423 | |||||||||||||||
Second lien (2) | 9.25% (Base Rate + 8.25%) | 4/9/2021 | 10,000 | 10,117 | 9,950 | ||||||||||||||||
25,500 | 25,639 | 25,373 | 2.89 | % | |||||||||||||||||
AAC Holding Corp. | |||||||||||||||||||||
Education | First lien (2) | 8.25% (Base Rate + 7.25%) | 9/30/2020 | 25,000 | 24,625 | 24,625 | 2.80 | % | |||||||||||||
Confie Seguros Holding II Co. | |||||||||||||||||||||
Consumer Services | Second lien (2) | 10.25% (Base Rate + 9.00%) | 5/8/2019 | 18,886 | 18,788 | 18,791 | |||||||||||||||
Second lien (3) | 10.25% (Base Rate + 9.00%) | 5/8/2019 | 5,571 | 5,648 | 5,543 | ||||||||||||||||
24,457 | 24,436 | 24,334 | 2.77 | % | |||||||||||||||||
PetVet Care Centers LLC | |||||||||||||||||||||
Consumer Services | Second lien (3) | 9.75% (Base Rate + 8.75%) | 6/17/2021 | 24,000 | 23,782 | 23,760 | 2.70 | % | |||||||||||||
Aricent Technologies | |||||||||||||||||||||
Business Services | Second lien (2) | 9.50% (Base Rate + 8.50%) | 4/14/2022 | 20,000 | 19,879 | 19,700 | |||||||||||||||
Second lien (3) | 9.50% (Base Rate + 8.50%) | 4/14/2022 | 2,550 | 2,557 | 2,512 | ||||||||||||||||
22,550 | 22,436 | 22,212 | 2.53 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate | Maturity Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | ||||||||||||||
McGraw-Hill School Education Holdings, LLC | |||||||||||||||||||||
Education | First lien (2) | 6.25% (Base Rate + 5.00%) | 12/18/2019 | $ | 21,615 | $ | 21,455 | $ | 21,683 | 2.47 | % | ||||||||||
YP Holdings LLC / Print Media Holdings LLC (10): | |||||||||||||||||||||
YP LLC / Print Media LLC | |||||||||||||||||||||
Media | First lien (2) | 8.00% (Base Rate + 6.75%) | 6/4/2018 | 21,374 | 21,197 | 21,214 | 2.41 | % | |||||||||||||
EN Engineering, LLC | |||||||||||||||||||||
Business Services | First lien (2) | 7.00% (Base Rate + 6.00%) | 6/30/2021 | 21,375 | 21,166 | 21,161 | 2.41 | % | |||||||||||||
Weston Solutions, Inc. | |||||||||||||||||||||
Business Services | Subordinated (4) | 16.00% | 7/3/2019 | 20,000 | 20,000 | 20,014 | 2.28 | % | |||||||||||||
TWDiamondback Holdings Corp. (18): | |||||||||||||||||||||
Diamondback Drugs of Delaware, L.L.C. (TWDiamondback II Holdings LLC) | |||||||||||||||||||||
Distribution & Logistics | First lien (4) | 9.75% (Base Rate + 8.75%) | 11/19/2019 | 19,895 | 19,895 | 19,895 | 2.26 | % | |||||||||||||
American Pacific Corporation | |||||||||||||||||||||
Specialty Chemicals and Materials | First lien (2) | 7.00% (Base Rate + 6.00%) | 2/27/2019 | 19,700 | 19,594 | 19,733 | 2.25 | % | |||||||||||||
VetCor Professional Practices LLC | |||||||||||||||||||||
Consumer Services | First lien (4) | 7.00% (Base Rate + 6.00%) | 4/20/2021 | 19,551 | 19,366 | 19,499 | |||||||||||||||
First lien (3)(11) - Drawn | 7.00% (Base Rate + 6.00%) | 4/20/2021 | 90 | 90 | 90 | ||||||||||||||||
19,641 | 19,456 | 19,589 | 2.23 | % | |||||||||||||||||
First American Payment Systems, L.P. | |||||||||||||||||||||
Business Services | Second lien (2) | 10.75% (Base Rate + 9.50%) | 4/12/2019 | 18,643 | 18,409 | 18,550 | 2.11 | % | |||||||||||||
Sierra Hamilton LLC / Sierra Hamilton Finance, Inc. | |||||||||||||||||||||
Energy | First lien (2) | 12.25% | 12/15/2018 | 25,000 | 25,000 | 16,500 | |||||||||||||||
First lien (3) | 12.25% | 12/15/2018 | 2,660 | 2,029 | 1,755 | ||||||||||||||||
27,660 | 27,029 | 18,255 | 2.08 | % | |||||||||||||||||
iPipeline, Inc. (Internet Pipeline, Inc.) | |||||||||||||||||||||
Software | First lien (4) | 8.25% (Base Rate + 7.25%) | 8/4/2022 | 18,000 | 17,823 | 17,820 | 2.03 | % | |||||||||||||
DCA Investment Holding, LLC | |||||||||||||||||||||
Healthcare Services | First lien (2) | 6.25% (Base Rate + 5.25%) | 7/2/2021 | 17,855 | 17,683 | 17,677 | 2.01 | % | |||||||||||||
AgKnowledge Holdings Company, Inc. | |||||||||||||||||||||
Business Services | Second lien (2) | 9.25% (Base Rate + 8.25%) | 7/23/2020 | 18,500 | 18,344 | 17,566 | 2.00 | % | |||||||||||||
Vertafore, Inc. | |||||||||||||||||||||
Software | Second lien (2) | 9.75% (Base Rate + 8.25%) | 10/27/2017 | 13,855 | 13,849 | 13,962 | |||||||||||||||
Second lien (3) | 9.75% (Base Rate + 8.25%) | 10/27/2017 | 2,000 | 2,016 | 2,016 | ||||||||||||||||
15,855 | 15,865 | 15,978 | 1.82 | % | |||||||||||||||||
MailSouth, Inc. (d/b/a Mspark) | |||||||||||||||||||||
Media | First lien (2) | 6.75% (Base Rate + 5.00%) | 12/14/2016 | 15,512 | 15,170 | 15,201 | 1.73 | % | |||||||||||||
Severin Acquisition, LLC | |||||||||||||||||||||
Software | Second lien (4) | 9.25% (Base Rate + 8.25%) | 7/29/2022 | 15,000 | 14,853 | 14,850 | 1.69 | % | |||||||||||||
GSDM Holdings Corp. | |||||||||||||||||||||
Healthcare Services | Subordinated (4) | 10.00% | 6/23/2020 | 15,000 | 14,875 | 14,643 | 1.67 | % | |||||||||||||
Vision Solutions, Inc. | |||||||||||||||||||||
Software | Second lien (2) | 9.50% (Base Rate + 8.00%) | 7/23/2017 | 14,000 | 13,975 | 14,000 | 1.59 | % | |||||||||||||
Permian Tank & Manufacturing, Inc. | |||||||||||||||||||||
Energy | First lien (2) | 10.50% | 1/15/2018 | 24,357 | 24,509 | 13,640 | 1.55 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate | Maturity Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | ||||||||||||||
TW-NHME Holdings Corp. (23): | |||||||||||||||||||||
National HME, Inc. | |||||||||||||||||||||
Healthcare Services | Second lien (4) | 10.25% (Base Rate + 9.25%) | 7/14/2022 | $ | 14,000 | $ | 13,829 | $ | 13,472 | 1.53 | % | ||||||||||
SW Holdings, LLC | |||||||||||||||||||||
Business Services | Second lien (4) | 9.75% (Base Rate + 8.75%) | 12/30/2021 | 13,500 | 13,369 | 13,155 | 1.50 | % | |||||||||||||
Poseidon Intermediate, LLC | |||||||||||||||||||||
Software | Second lien (2) | 9.50% (Base Rate + 8.50%) | 8/15/2023 | 13,000 | 12,807 | 12,805 | 1.46 | % | |||||||||||||
American Tire Distributors, Inc. | |||||||||||||||||||||
Distribution & Logistics | Subordinated (3) | 10.25% | 3/1/2022 | 10,000 | 10,000 | 10,250 | 1.17 | % | |||||||||||||
PowerPlan Holdings, Inc. | |||||||||||||||||||||
Software | Second lien (2) | 10.75% (Base Rate + 9.75%) | 2/23/2023 | 10,000 | 9,905 | 9,970 | 1.13 | % | |||||||||||||
Novitex Acquisition, LLC (fka ARSloane Acquisition, LLC) | |||||||||||||||||||||
Business Services | First lien (2) | 7.50% (Base Rate + 6.25%) | 7/7/2020 | 9,788 | 9,577 | 9,201 | 1.05 | % | |||||||||||||
Harley Marine Services, Inc. | |||||||||||||||||||||
Distribution & Logistics | Second lien (2) | 10.50% (Base Rate + 9.25%) | 12/20/2019 | 9,000 | 8,862 | 8,910 | 1.01 | % | |||||||||||||
Vitera Healthcare Solutions, LLC | |||||||||||||||||||||
Software | First lien (2) | 6.00% (Base Rate + 5.00%) | 11/4/2020 | 1,965 | 1,950 | 1,951 | |||||||||||||||
Second lien (2) | 9.25% (Base Rate + 8.25%) | 11/4/2021 | 7,000 | 6,914 | 6,825 | ||||||||||||||||
8,965 | 8,864 | 8,776 | 1.00 | % | |||||||||||||||||
Smile Brands Group Inc. | |||||||||||||||||||||
Healthcare Services | First lien (2) | 8.50% (Base Rate + 5.25%) | 8/16/2019 | 12,220 | 12,100 | 8,625 | 0.98 | % | |||||||||||||
QC McKissock Investment, LLC (17): | |||||||||||||||||||||
McKissock, LLC | |||||||||||||||||||||
Education | First lien (2) | 7.50% (Base Rate + 6.50%) | 8/5/2019 | 4,887 | 4,848 | 4,747 | |||||||||||||||
First lien (2) | 7.50% (Base Rate + 6.50%) | 8/5/2019 | 3,155 | 3,130 | 3,065 | ||||||||||||||||
First lien (2)(11) - Drawn | 7.50% (Base Rate + 6.50%) | 8/5/2019 | 576 | 571 |