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 August 3, 2016 | |
Common stock, par value $0.01 per share | 63,756,888 |
PAGE | ||
Item 1. | Financial Statements |
June 30, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Investments at fair value | |||||||
Non-controlled/non-affiliated investments (cost of $1,383,739 and $1,438,415, respectively) | $ | 1,321,957 | $ | 1,377,515 | |||
Non-controlled/affiliated investments (cost of $94,105 and $89,047, respectively) | 92,320 | 87,287 | |||||
Controlled investments (cost of $69,139 and $41,254, respectively) | 83,784 | 47,422 | |||||
Total investments at fair value (cost of $1,546,983 and $1,568,716, respectively) | 1,498,061 | 1,512,224 | |||||
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively) | 29,630 | 29,704 | |||||
Cash and cash equivalents | 34,467 | 30,102 | |||||
Interest and dividend receivable | 15,272 | 13,832 | |||||
Receivable from unsettled securities sold | 3,600 | — | |||||
Receivable from affiliates | 953 | 360 | |||||
Other assets | 2,618 | 1,924 | |||||
Total assets | $ | 1,584,601 | $ | 1,588,146 | |||
Liabilities | |||||||
Borrowings | |||||||
Holdings Credit Facility | $ | 348,013 | $ | 419,313 | |||
SBA-guaranteed debentures | 121,745 | 117,745 | |||||
Convertible Notes | 115,000 | 115,000 | |||||
NMFC Credit Facility | 87,000 | 90,000 | |||||
Unsecured Notes | 50,000 | — | |||||
Deferred financing costs (net of accumulated amortization of $10,411 and $8,822, respectively) | (13,915 | ) | (13,992 | ) | |||
Net borrowings | 707,843 | 728,066 | |||||
Payable for unsettled securities purchased | 15,832 | 5,441 | |||||
Management fee payable | 5,577 | 5,466 | |||||
Incentive fee payable | 5,449 | 5,622 | |||||
Interest payable | 2,749 | 2,343 | |||||
Deferred tax liability | 868 | 1,676 | |||||
Payable to affiliates | 437 | 564 | |||||
Other liabilities | 2,521 | 2,060 | |||||
Total liabilities | 741,276 | 751,238 | |||||
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, 64,005,387 and 64,005,387 shares issued, respectively, and 63,756,888 and 64,005,387 shares outstanding, respectively | 640 | 640 | |||||
Paid in capital in excess of par | 899,751 | 899,713 | |||||
Treasury stock at cost, 248,499 and 0 shares held, respectively | (2,948 | ) | — | ||||
Accumulated undistributed net investment income | 4,146 | 4,164 | |||||
Accumulated undistributed net realized gains on investments | 2,383 | 1,342 | |||||
Net unrealized (depreciation) appreciation (net of provision for taxes of $868 and $1,676, respectively) | (60,647 | ) | (68,951 | ) | |||
Total net assets | $ | 843,325 | $ | 836,908 | |||
Total liabilities and net assets | $ | 1,584,601 | $ | 1,588,146 | |||
Number of shares outstanding | 63,756,888 | 64,005,387 | |||||
Net asset value per share | $ | 13.23 | $ | 13.08 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||
Investment income | |||||||||||||||
From non-controlled/non-affiliated investments: | |||||||||||||||
Interest income | $ | 36,302 | $ | 33,767 | $ | 72,008 | $ | 65,621 | |||||||
Dividend income | 92 | 201 | 92 | 102 | |||||||||||
Other income | 997 | 320 | 2,219 | 1,877 | |||||||||||
From non-controlled/affiliated investments: | |||||||||||||||
Interest income | 1,627 | 1,183 | 3,209 | 2,226 | |||||||||||
Dividend income | 887 | 951 | 1,807 | 1,809 | |||||||||||
Other income | 305 | 308 | 618 | 622 | |||||||||||
From controlled investments: | |||||||||||||||
Interest income | 483 | 520 | 985 | 970 | |||||||||||
Dividend income | 742 | 643 | 1,461 | 1,191 | |||||||||||
Other income | 55 | 12 | 67 | 23 | |||||||||||
Total investment income | 41,490 | 37,905 | 82,466 | 74,441 | |||||||||||
Expenses | |||||||||||||||
Incentive fee | 5,449 | 5,057 | 10,834 | 9,935 | |||||||||||
Capital gains incentive fee | — | 9 | — | 490 | |||||||||||
Total incentive fees | 5,449 | 5,066 | 10,834 | 10,425 | |||||||||||
Management fee | 6,818 | 6,198 | 13,654 | 12,666 | |||||||||||
Interest and other financing expenses | 6,771 | 5,598 | 13,373 | 11,075 | |||||||||||
Professional fees | 861 | 909 | 1,738 | 1,648 | |||||||||||
Administrative expenses | 629 | 522 | 1,468 | 1,157 | |||||||||||
Other general and administrative expenses | 384 | 453 | 816 | 882 | |||||||||||
Total expenses | 20,912 | 18,746 | 41,883 | 37,853 | |||||||||||
Less: management fee waived (See Note 5) | (1,241 | ) | (1,247 | ) | (2,560 | ) | (2,629 | ) | |||||||
Less: expenses waived and reimbursed (See Note 5) | (63 | ) | — | (347 | ) | (400 | ) | ||||||||
Net expenses | 19,608 | 17,499 | 38,976 | 34,824 | |||||||||||
Net investment income before income taxes | 21,882 | 20,406 | 43,490 | 39,617 | |||||||||||
Income tax expense | 50 | 153 | 91 | 302 | |||||||||||
Net investment income | 21,832 | 20,253 | 43,399 | 39,315 | |||||||||||
Net realized gains (losses): | |||||||||||||||
Non-controlled/non-affiliated investments | 865 | (13,338 | ) | 1,041 | (13,471 | ) | |||||||||
Net change in unrealized appreciation (depreciation): | |||||||||||||||
Non-controlled/non-affiliated investments | 13,532 | 11,970 | (882 | ) | 10,508 | ||||||||||
Non-controlled/affiliated investments | 1,126 | 1,600 | (25 | ) | 728 | ||||||||||
Controlled investments | 7,298 | (86 | ) | 8,477 | 6,734 | ||||||||||
Securities purchased under collateralized agreements to resell | (44 | ) | — | (74 | ) | — | |||||||||
Benefit (provision) for taxes | 84 | (135 | ) | 808 | (636 | ) | |||||||||
Net realized and unrealized gains (losses) | 22,861 | 11 | 9,345 | 3,863 | |||||||||||
Net increase in net assets resulting from operations | $ | 44,693 | $ | 20,264 | $ | 52,744 | $ | 43,178 | |||||||
Basic earnings per share | $ | 0.70 | $ | 0.35 | $ | 0.83 | $ | 0.74 | |||||||
Weighted average shares of common stock outstanding - basic (See Note 11) | 63,839,920 | 58,076,552 | 63,887,036 | 58,037,868 | |||||||||||
Diluted earnings per share | $ | 0.64 | $ | 0.33 | $ | 0.77 | $ | 0.70 | |||||||
Weighted average shares of common stock outstanding - diluted (See Note 11) | 71,117,051 | 65,313,497 | 71,164,167 | 65,265,931 | |||||||||||
Dividends declared and paid per share | $ | 0.34 | $ | 0.34 | $ | 0.68 | $ | 0.68 |
Six Months Ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
Increase (decrease) in net assets resulting from operations: | |||||||
Net investment income | $ | 43,399 | $ | 39,315 | |||
Net realized gains (losses) on investments | 1,041 | (13,471 | ) | ||||
Net change in unrealized appreciation (depreciation) of investments | 7,570 | 17,970 | |||||
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell | (74 | ) | — | ||||
Benefit (provision) for taxes | 808 | (636 | ) | ||||
Net increase in net assets resulting from operations | 52,744 | 43,178 | |||||
Capital transactions | |||||||
Deferred offering costs | 38 | 59 | |||||
Dividends declared to stockholders from net investment income | (43,417 | ) | (39,465 | ) | |||
Reinvestment of dividends | — | 2,384 | |||||
Repurchase of shares under repurchase program | (2,948 | ) | — | ||||
Total net decrease in net assets resulting from capital transactions | (46,327 | ) | (37,022 | ) | |||
Net increase in net assets | 6,417 | 6,156 | |||||
Net assets at the beginning of the period | 836,908 | 802,170 | |||||
Net assets at the end of the period | $ | 843,325 | $ | 808,326 | |||
Capital share activity | |||||||
Shares issued from reinvestment of dividends | — | 163,931 | |||||
Shares repurchased under repurchase program | (248,499 | ) | — | ||||
Net (decrease) increase in shares outstanding | (248,499 | ) | 163,931 |
Six Months Ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
Cash flows from operating activities | |||||||
Net increase in net assets resulting from operations | $ | 52,744 | $ | 43,178 | |||
Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash (used in) provided by operating activities: | |||||||
Net realized (gains) losses on investments | (1,041 | ) | 13,471 | ||||
Net change in unrealized (appreciation) depreciation of investments | (7,570 | ) | (17,970 | ) | |||
Net change in unrealized depreciation (appreciation) of securities purchased under collateralized agreements to resell | 74 | — | |||||
Amortization of purchase discount | (1,617 | ) | (1,176 | ) | |||
Amortization of deferred financing costs | 1,589 | 1,419 | |||||
Non-cash investment income | (3,356 | ) | (3,209 | ) | |||
(Increase) decrease in operating assets: | |||||||
Purchase of investments and delayed draw facilities | (163,888 | ) | (187,045 | ) | |||
Proceeds from sales and paydowns of investments | 198,211 | 315,219 | |||||
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities | 43 | 54 | |||||
Cash paid for purchase of drawn portion of revolving credit facilities | — | (3,050 | ) | ||||
Cash paid on drawn revolvers | (8,851 | ) | (970 | ) | |||
Cash repayments on drawn revolvers | 2,232 | 475 | |||||
Interest and dividend receivable | (1,440 | ) | 288 | ||||
Receivable from unsettled securities sold | (3,600 | ) | 8,912 | ||||
Receivable from affiliates | (593 | ) | 128 | ||||
Other assets | (423 | ) | (1,162 | ) | |||
Increase (decrease) in operating liabilities: | |||||||
Payable for unsettled securities purchased | 10,391 | (26,460 | ) | ||||
Management fee payable | 111 | (193 | ) | ||||
Incentive fee payable | (173 | ) | 254 | ||||
Interest payable | 406 | 8 | |||||
Deferred tax liability | (808 | ) | 636 | ||||
Payable to affiliates | (127 | ) | (362 | ) | |||
Capital gains incentive fee payable | — | 490 | |||||
Other liabilities | 257 | (658 | ) | ||||
Net cash flows provided by operating activities | 72,571 | 142,277 | |||||
Cash flows from financing activities | |||||||
Dividends paid | (43,417 | ) | (37,081 | ) | |||
Offering costs paid | (53 | ) | (56 | ) | |||
Proceeds from Holdings Credit Facility | 103,300 | 138,750 | |||||
Repayment of Holdings Credit Facility | (174,600 | ) | (247,000 | ) | |||
Proceeds from SBA-guaranteed debentures | 4,000 | 17,500 | |||||
Proceeds from NMFC Credit Facility | 71,000 | 51,300 | |||||
Repayment of NMFC Credit Facility | (74,000 | ) | (63,300 | ) | |||
Proceeds from Unsecured Notes | 50,000 | — | |||||
Deferred financing costs paid | (1,488 | ) | (1,609 | ) | |||
Repurchase of shares under repurchase program | (2,948 | ) | — | ||||
Net cash flows used in financing activities | (68,206 | ) | (141,496 | ) | |||
Net increase in cash and cash equivalents | 4,365 | 781 | |||||
Cash and cash equivalents at the beginning of the period | 30,102 | 23,445 | |||||
Cash and cash equivalents at the end of the period | $ | 34,467 | $ | 24,226 | |||
Supplemental disclosure of cash flow information | |||||||
Cash interest paid | $ | 10,960 | $ | 9,303 | |||
Income taxes paid | 3 | 143 | |||||
Non-cash operating activities: | |||||||
Non-cash activity on investments | $ | 167 | $ | 60,652 | |||
Non-cash financing activities: | |||||||
Value of shares issued in connection with dividend reinvestment plan | $ | — | $ | 2,384 | |||
Accrual for offering costs | 817 | 824 | |||||
Accrual for deferred financing costs | 106 | 127 |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(10) | Maturity / Expiration 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% (L + 7.00%/M) | 9/23/2019 | $ | 7,755 | $ | 7,725 | $ | 7,523 | 0.89 | % | ||||||||||
Total Funded Debt Investments - Australia | $ | 7,755 | $ | 7,725 | $ | 7,523 | 0.89 | % | |||||||||||||
Funded Debt Investments - Luxembourg | |||||||||||||||||||||
Pinnacle Holdco S.à.r.l. / Pinnacle (US) Acquisition Co Limited** | |||||||||||||||||||||
Software | Second lien (2) | 10.50% (L + 9.25%/Q) | 7/30/2020 | $ | 24,630 | $ | 24,349 | $ | 17,240 | ||||||||||||
Second lien (3) | 10.50% (L + 9.25%/Q) | 7/30/2020 | 8,204 | 8,329 | 5,743 | ||||||||||||||||
32,834 | 32,678 | 22,983 | 2.73 | % | |||||||||||||||||
Total Funded Debt Investments - Luxembourg | $ | 32,834 | $ | 32,678 | $ | 22,983 | 2.73 | % | |||||||||||||
Funded Debt Investments - Netherlands | |||||||||||||||||||||
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC)** | |||||||||||||||||||||
Software | Second lien (3) | 10.13% (L + 9.13%/Q) | 2/17/2023 | $ | 10,000 | $ | 9,337 | $ | 9,450 | 1.12 | % | ||||||||||
Total Funded Debt Investments - Netherlands | $ | 10,000 | $ | 9,337 | $ | 9,450 | 1.12 | % | |||||||||||||
Funded Debt Investments - United Kingdom | |||||||||||||||||||||
Air Newco LLC** | |||||||||||||||||||||
Software | Second lien (3) | 10.50% (L + 9.50%/Q) | 1/31/2023 | $ | 32,500 | $ | 31,774 | $ | 30,265 | 3.59 | % | ||||||||||
Total Funded Debt Investments - United Kingdom | $ | 32,500 | $ | 31,774 | $ | 30,265 | 3.59 | % | |||||||||||||
Funded Debt Investments - United States | |||||||||||||||||||||
Engility Corporation (fka TASC, Inc.) | |||||||||||||||||||||
Federal Services | First lien (2) | 7.00% (L + 6.00%/Q) | 5/22/2020 | $ | 27,600 | $ | 27,325 | $ | 27,651 | ||||||||||||
Second lien (3) | 12.00%/M | 5/21/2021 | 12,500 | 12,104 | 12,552 | ||||||||||||||||
Second lien (3) | 12.00%/M | 5/21/2021 | 4,000 | 3,974 | 4,017 | ||||||||||||||||
44,100 | 43,403 | 44,220 | 5.24 | % | |||||||||||||||||
Deltek, Inc. | |||||||||||||||||||||
Software | Second lien (3) | 9.50% (L + 8.50%/Q) | 6/26/2023 | 21,000 | 20,982 | 21,276 | |||||||||||||||
Second lien (2) | 9.50% (L + 8.50%/Q) | 6/26/2023 | 20,000 | 19,629 | 20,263 | ||||||||||||||||
41,000 | 40,611 | 41,539 | 4.93 | % | |||||||||||||||||
Hill International, Inc. | |||||||||||||||||||||
Business Services | First lien (2) | 7.75% (L + 6.75%/Q) | 9/28/2020 | 41,756 | 41,315 | 41,443 | 4.91 | % | |||||||||||||
Navex Global, Inc. | |||||||||||||||||||||
Software | First lien (4) | 5.75% (L + 4.75%/Q) | 11/19/2021 | 4,574 | 4,537 | 4,545 | |||||||||||||||
First lien (2) | 5.75% (L + 4.75%/Q) | 11/19/2021 | 2,589 | 2,568 | 2,573 | ||||||||||||||||
Second lien (4) | 9.75% (L + 8.75%/Q) | 11/18/2022 | 18,187 | 17,972 | 17,734 | ||||||||||||||||
Second lien (3) | 9.75% (L + 8.75%/Q) | 11/18/2022 | 15,313 | 14,831 | 14,930 | ||||||||||||||||
40,663 | 39,908 | 39,782 | 4.72 | % | |||||||||||||||||
AssuredPartners, Inc. | |||||||||||||||||||||
Business Services | Second lien (2) | 10.00% (L + 9.00%/M) | 10/20/2023 | 20,000 | 19,246 | 19,762 | |||||||||||||||
Second lien (3) | 10.00% (L + 9.00%/M) | 10/20/2023 | 20,200 | 19,444 | 19,960 | ||||||||||||||||
40,200 | 38,690 | 39,722 | 4.71 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(10) | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | ||||||||||||||
TIBCO Software Inc. | |||||||||||||||||||||
Software | First lien (2) | 6.50% (L + 5.50%/M) | 12/4/2020 | $ | 29,625 | $ | 28,474 | $ | 27,181 | ||||||||||||
Subordinated (3) | 11.38%/S | 12/1/2021 | 15,000 | 14,635 | 12,000 | ||||||||||||||||
44,625 | 43,109 | 39,181 | 4.65 | % | |||||||||||||||||
Kronos Incorporated | |||||||||||||||||||||
Software | Second lien (2) | 9.75% (L + 8.50%/Q) | 4/30/2020 | 32,632 | 32,454 | 32,931 | |||||||||||||||
Second lien (3) | 9.75% (L + 8.50%/Q) | 4/30/2020 | 4,999 | 4,962 | 5,044 | ||||||||||||||||
37,631 | 37,416 | 37,975 | 4.50 | % | |||||||||||||||||
ProQuest LLC | |||||||||||||||||||||
Business Services | Second lien (3) | 10.00% (L + 9.00%/Q) | 12/15/2022 | 35,000 | 34,337 | 35,000 | 4.15 | % | |||||||||||||
Ascend Learning, LLC | |||||||||||||||||||||
Education | Second lien (3) | 9.50% (L + 8.50%/Q) | 11/30/2020 | 35,227 | 34,860 | 33,906 | 4.02 | % | |||||||||||||
CRGT Inc. | |||||||||||||||||||||
Federal Services | First lien (2) | 7.50% (L + 6.50%/M) | 12/19/2020 | 32,408 | 32,203 | 32,164 | 3.81 | % | |||||||||||||
Valet Waste Holdings, Inc. | |||||||||||||||||||||
Business Services | First lien (2) | 8.00% (L + 7.00%/Q) | 9/24/2021 | 29,775 | 29,442 | 29,404 | |||||||||||||||
First lien (3)(11) - Drawn | 8.00% (L + 7.00%/Q) | 9/24/2021 | 2,250 | 2,222 | 2,222 | ||||||||||||||||
32,025 | 31,664 | 31,626 | 3.75 | % | |||||||||||||||||
PetVet Care Centers LLC | |||||||||||||||||||||
Consumer Services | Second lien (3) | 10.25% (L + 9.25%/Q) | 6/17/2021 | 24,000 | 23,804 | 24,329 | |||||||||||||||
Second lien (3) | 10.50% (L + 9.50%/Q) | 6/17/2021 | 6,500 | 6,438 | 6,630 | ||||||||||||||||
30,500 | 30,242 | 30,959 | 3.67 | % | |||||||||||||||||
Rocket Software, Inc. | |||||||||||||||||||||
Software | Second lien (2) | 10.25% (L + 8.75%/Q) | 2/8/2019 | 30,875 | 30,793 | 30,810 | 3.65 | % | |||||||||||||
VetCor Professional Practices LLC | |||||||||||||||||||||
Consumer Services | First lien (4) | 7.25% (L + 6.25%/Q) | 4/20/2021 | 19,404 | 19,241 | 19,598 | |||||||||||||||
First lien (2) | 7.25% (L + 6.25%/Q) | 4/20/2021 | 7,832 | 7,676 | 7,911 | ||||||||||||||||
First lien (4)(11) - Drawn | 7.25% (L + 6.25%/Q) | 4/20/2021 | 2,265 | 2,244 | 2,288 | ||||||||||||||||
First lien (3)(11) - Drawn | 7.25% (L + 6.25%/Q) | 4/20/2021 | 675 | 668 | 682 | ||||||||||||||||
30,176 | 29,829 | 30,479 | 3.61 | % | |||||||||||||||||
CompassLearning, Inc. (15) | |||||||||||||||||||||
Education | First lien (2) | 8.00% (L + 6.75%/Q) | 11/26/2018 | 30,000 | 29,605 | 29,828 | 3.54 | % | |||||||||||||
Integro Parent Inc. | |||||||||||||||||||||
Business Services | First lien (2) | 6.75% (L + 5.75%/Q) | 10/31/2022 | 18,887 | 18,538 | 18,604 | |||||||||||||||
First lien (2) | 6.75% (L + 5.75%/Q) | 10/31/2022 | 1,019 | 1,000 | 1,003 | ||||||||||||||||
Second lien (3) | 10.25% (L + 9.25%/Q) | 10/30/2023 | 10,000 | 9,906 | 9,650 | ||||||||||||||||
29,906 | 29,444 | 29,257 | 3.47 | % | |||||||||||||||||
Ryan, LLC | |||||||||||||||||||||
Business Services | First lien (2) | 6.75% (L + 5.75%/M) | 8/7/2020 | 26,600 | 26,263 | 26,069 | 3.09 | % | |||||||||||||
DigiCert Holdings, Inc. | |||||||||||||||||||||
Software | First lien (2) | 6.00% (L + 5.00%/Q) | 10/21/2021 | 24,875 | 24,200 | 24,752 | 2.94 | % | |||||||||||||
Precyse Acquisition Corp. | |||||||||||||||||||||
Healthcare Services | Second lien (2) | 10.75% (L + 9.75%/Q) | 4/20/2023 | 25,000 | 24,570 | 24,563 | 2.91 | % | |||||||||||||
AAC Holding Corp. | |||||||||||||||||||||
Education | First lien (2) | 8.25% (L + 7.25%/M) | 9/30/2020 | 24,621 | 24,299 | 24,253 | 2.88 | % | |||||||||||||
KeyPoint Government Solutions, Inc. | |||||||||||||||||||||
Federal Services | First lien (2) | 7.75% (L + 6.50%/Q) | 11/13/2017 | 24,143 | 23,977 | 24,023 | 2.85 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(10) | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | ||||||||||||||
Pelican Products, Inc. | |||||||||||||||||||||
Business Products | Second lien (3) | 9.25% (L + 8.25%/Q) | 4/9/2021 | $ | 15,500 | $ | 15,512 | $ | 14,105 | ||||||||||||
Second lien (2) | 9.25% (L + 8.25%/Q) | 4/9/2021 | 10,000 | 10,111 | 9,100 | ||||||||||||||||
25,500 | 25,623 | 23,205 | 2.75 | % | |||||||||||||||||
EN Engineering, LLC | |||||||||||||||||||||
Business Services | First lien (2) | 7.00% (L + 6.00%/Q) | 6/30/2021 | 21,214 | 21,030 | 21,002 | |||||||||||||||
First lien (2)(11) - Drawn | 8.50% (P + 5.00%/Q) | 6/30/2021 | 2,197 | 2,177 | 2,175 | ||||||||||||||||
23,411 | 23,207 | 23,177 | 2.75 | % | |||||||||||||||||
TWDiamondback Holdings Corp. (18) | |||||||||||||||||||||
Diamondback Drugs of Delaware, L.L.C. (TWDiamondback II Holdings LLC) | |||||||||||||||||||||
Distribution & Logistics | First lien (4) | 9.75% (L + 8.75%/Q) | 11/19/2019 | 19,895 | 19,895 | 20,156 | |||||||||||||||
First lien (3) | 9.75% (L + 8.75%/Q) | 11/19/2019 | 2,158 | 2,158 | 2,186 | ||||||||||||||||
First lien (4) | 9.75% (L + 8.75%/Q) | 11/19/2019 | 605 | 605 | 613 | ||||||||||||||||
22,658 | 22,658 | 22,955 | 2.72 | % | |||||||||||||||||
Vision Solutions, Inc. | |||||||||||||||||||||
Software | First lien (2) | 7.50% (L + 6.50%/Q) | 6/16/2022 | 22,500 | 22,276 | 22,275 | 2.64 | % | |||||||||||||
Severin Acquisition, LLC | |||||||||||||||||||||
Software | Second lien (4) | 9.75% (L + 8.75%/Q) | 7/29/2022 | 15,000 | 14,864 | 14,850 | |||||||||||||||
Second lien (4) | 9.75% (L + 8.75%/Q) | 7/29/2022 | 4,154 | 4,115 | 4,112 | ||||||||||||||||
Second lien (4) | 10.25% (L + 9.25%/Q) | 7/29/2022 | 3,273 | 3,242 | 3,305 | ||||||||||||||||
22,427 | 22,221 | 22,267 | 2.64 | % | |||||||||||||||||
TW-NHME Holdings Corp. (23) | |||||||||||||||||||||
National HME, Inc. | |||||||||||||||||||||
Healthcare Services | Second lien (4) | 10.25% (L + 9.25%/Q) | 7/14/2022 | 21,500 | 21,252 | 21,231 | |||||||||||||||
Second lien (3) | 10.25% (L + 9.25%/Q) | 7/14/2022 | 500 | 494 | 494 | ||||||||||||||||
22,000 | 21,746 | 21,725 | 2.58 | % | |||||||||||||||||
Sierra Hamilton LLC / Sierra Hamilton Finance, Inc. | |||||||||||||||||||||
Energy | First lien (2) | 12.25%/S | 12/15/2018 | 25,000 | 25,000 | 19,500 | |||||||||||||||
First lien (3) | 12.25%/S | 12/15/2018 | 2,660 | 2,144 | 2,075 | ||||||||||||||||
27,660 | 27,144 | 21,575 | 2.56 | % | |||||||||||||||||
Confie Seguros Holding II Co. | |||||||||||||||||||||
Consumer Services | Second lien (2) | 10.25% (L + 9.00%/M) | 5/8/2019 | 18,886 | 18,811 | 17,988 | |||||||||||||||
Second lien (3) | 10.25% (L + 9.00%/M) | 5/8/2019 | 3,571 | 3,631 | 3,402 | ||||||||||||||||
22,457 | 22,442 | 21,390 | 2.54 | % | |||||||||||||||||
Weston Solutions, Inc. | |||||||||||||||||||||
Business Services | Subordinated (4) | 16.00%/Q | 7/3/2019 | 20,000 | 20,000 | 20,311 | 2.41 | % | |||||||||||||
IT'SUGAR LLC | |||||||||||||||||||||
Retail | First lien (4) | 10.50% (L + 9.50%/Q) | 10/23/2019 | 20,895 | 20,200 | 20,082 | 2.38 | % | |||||||||||||
Aricent Technologies | |||||||||||||||||||||
Business Services | Second lien (2) | 9.50% (L + 8.50%/Q) | 4/14/2022 | 20,000 | 19,887 | 16,200 | |||||||||||||||
Second lien (3) | 9.50% (L + 8.50%/Q) | 4/14/2022 | 4,000 | 3,733 | 3,240 | ||||||||||||||||
24,000 | 23,620 | 19,440 | 2.31 | % | |||||||||||||||||
DCA Investment Holding, LLC | |||||||||||||||||||||
Healthcare Services | First lien (2) | 6.25% (L + 5.25%/Q) | 7/2/2021 | 17,721 | 17,569 | 17,544 | |||||||||||||||
First lien (3)(11) - Drawn | 7.75% (P + 4.25%/Q) | 7/2/2021 | 1,244 | 1,231 | 1,231 | ||||||||||||||||
18,965 | 18,800 | 18,775 | 2.23 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(10) | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | ||||||||||||||
First American Payment Systems, L.P. | |||||||||||||||||||||
Business Services | Second lien (2) | 10.75% (L + 9.50%/M) | 4/12/2019 | $ | 18,643 | $ | 18,451 | $ | 17,990 | 2.13 | % | ||||||||||
iPipeline, Inc. (Internet Pipeline, Inc.) | |||||||||||||||||||||
Software | First lien (4) | 8.25% (L + 7.25%/Q) | 8/4/2022 | 17,865 | 17,704 | 17,686 | 2.10 | % | |||||||||||||
YP Holdings LLC / Print Media Holdings LLC (12) | |||||||||||||||||||||
YP LLC / Print Media LLC | |||||||||||||||||||||
Media | First lien (2) | 8.00% (L + 6.75%/M) | 6/4/2018 | 18,320 | 18,208 | 17,233 | 2.04 | % | |||||||||||||
AgKnowledge Holdings Company, Inc. | |||||||||||||||||||||
Business Services | Second lien (2) | 9.25% (L + 8.25%/M) | 7/23/2020 | 18,500 | 18,365 | 17,122 | 2.03 | % | |||||||||||||
Netsmart Inc. / Netsmart Technologies, Inc. | |||||||||||||||||||||
Healthcare Information Technology | Second lien (2) | 10.50% (L + 9.50%/Q) | 10/19/2023 | 15,000 | 14,631 | 14,850 | 1.76 | % | |||||||||||||
SW Holdings, LLC | |||||||||||||||||||||
Business Services | Second lien (4) | 9.75% (L + 8.75%/Q) | 12/30/2021 | 14,265 | 14,138 | 14,122 | 1.67 | % | |||||||||||||
Poseidon Intermediate, LLC | |||||||||||||||||||||
Software | Second lien (2) | 9.50% (L + 8.50%/Q) | 8/15/2023 | 13,000 | 12,820 | 12,805 | 1.52 | % | |||||||||||||
American Tire Distributors, Inc. | |||||||||||||||||||||
Distribution & Logistics | Subordinated (3) | 10.25%/S | 3/1/2022 | 13,000 | 12,810 | 11,473 | 1.36 | % | |||||||||||||
Transtar Holding Company | |||||||||||||||||||||
Distribution & Logistics | Second lien (2) | 12.00% (L + 10.75%/Q)(8) | 10/9/2019 | 28,300 | 28,011 | 8,490 | |||||||||||||||
Second lien (3) | 12.00% (L + 10.75%/Q)(8) | 10/9/2019 | 9,564 | 2,889 | 2,869 | ||||||||||||||||
37,864 | 30,900 | 11,359 | 1.35 | % | |||||||||||||||||
Smile Brands Group Inc. | |||||||||||||||||||||
Healthcare Services | First lien (2) | 9.00% (L + 6.25% + 1.50% PIK/Q)* | 8/16/2019 | 12,243 | 12,145 | 10,635 | 1.26 | % | |||||||||||||
PowerPlan Holdings, Inc. | |||||||||||||||||||||
Software | Second lien (2) | 10.75% (L + 9.75%/Q) | 2/23/2023 | 10,000 | 9,912 | 9,908 | 1.17 | % | |||||||||||||
Harley Marine Services, Inc. | |||||||||||||||||||||
Distribution & Logistics | Second lien (2) | 10.50% (L + 9.25%/Q) | 12/20/2019 | 9,000 | 8,883 | 8,955 | 1.06 | % | |||||||||||||
QC McKissock Investment, LLC (17) | |||||||||||||||||||||
McKissock, LLC | |||||||||||||||||||||
Education | First lien (2) | 7.50% (L + 6.50%/Q) | 8/5/2019 | 4,796 | 4,764 | 4,796 | |||||||||||||||
First lien (2) | 7.50% (L + 6.50%/Q) | 8/5/2019 | 3,096 | 3,076 | 3,096 | ||||||||||||||||
First lien (2) |