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 (Do not check if a smaller reporting company) | Smaller reporting company o | |||
Emerging growth company o |
Description | Shares as of May 7, 2018 | |
Common stock, par value $0.01 per share | 75,935,093 |
PAGE | ||
Item 1. | Financial Statements |
March 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Investments at fair value | |||||||
Non-controlled/non-affiliated investments (cost of $1,563,275 and $1,438,889, respectively) | $ | 1,583,047 | $ | 1,462,182 | |||
Non-controlled/affiliated investments (cost of $152,521 and $180,380, respectively) | 155,729 | 178,076 | |||||
Controlled investments (cost of $229,862 and $171,958, respectively) | 239,147 | 185,402 | |||||
Total investments at fair value (cost of $1,945,658 and $1,791,227, respectively) | 1,977,923 | 1,825,660 | |||||
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000 respectively) | 25,200 | 25,212 | |||||
Cash and cash equivalents | 29,636 | 34,936 | |||||
Interest and dividend receivable | 36,767 | 31,844 | |||||
Receivable from affiliates | 651 | 343 | |||||
Other assets | 8,242 | 10,023 | |||||
Total assets | $ | 2,078,419 | $ | 1,928,018 | |||
Liabilities | |||||||
Borrowings | |||||||
Holdings Credit Facility | $ | 355,663 | $ | 312,363 | |||
Unsecured Notes | 235,000 | 145,000 | |||||
Convertible Notes | 155,385 | 155,412 | |||||
SBA-guaranteed debentures | 150,000 | 150,000 | |||||
NMFC Credit Facility | 95,000 | 122,500 | |||||
Deferred financing costs (net of accumulated amortization of $17,885 and $16,578, respectively) | (16,012 | ) | (15,777 | ) | |||
Net borrowings | 975,036 | 869,498 | |||||
Payable for unsettled securities purchased | 29,841 | — | |||||
Management fee payable | 14,435 | 7,065 | |||||
Incentive fee payable | 13,105 | 6,671 | |||||
Interest payable | 7,201 | 5,107 | |||||
Payable to affiliates | 2,076 | 863 | |||||
Deferred tax liability | 812 | 894 | |||||
Other liabilities | 2,912 | 2,945 | |||||
Total liabilities | 1,045,418 | 893,043 | |||||
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, 75,935,093 and 75,935,903 shares issued and outstanding, respectively | 759 | 759 | |||||
Paid in capital in excess of par | 1,053,468 | 1,053,468 | |||||
Accumulated undistributed net investment income | 39,083 | 39,165 | |||||
Accumulated undistributed net realized losses on investments | (76,475 | ) | (76,681 | ) | |||
Net unrealized appreciation (depreciation) (net of provision for taxes of $812 and $894, respectively) | 16,166 | 18,264 | |||||
Total net assets | $ | 1,033,001 | $ | 1,034,975 | |||
Total liabilities and net assets | $ | 2,078,419 | $ | 1,928,018 | |||
Number of shares outstanding | 75,935,093 | 75,935,093 | |||||
Net asset value per share | $ | 13.60 | $ | 13.63 |
Three Months Ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Investment income | |||||||
From non-controlled/non-affiliated investments: | |||||||
Interest income | $ | 35,436 | $ | 32,876 | |||
Dividend income | 486 | 39 | |||||
Non-cash dividend income | 1,324 | 12 | |||||
Other income | 2,868 | 2,265 | |||||
From non-controlled/affiliated investments: | |||||||
Interest income | 102 | 647 | |||||
Dividend income | 845 | 1,004 | |||||
Non-cash dividend income | 4,009 | 644 | |||||
Other income | 302 | 298 | |||||
From controlled investments: | |||||||
Interest income | 1,201 | 475 | |||||
Dividend income | 4,239 | 4,213 | |||||
Non-cash dividend income | 1,454 | 821 | |||||
Other income | 623 | 13 | |||||
Total investment income | 52,889 | 43,307 | |||||
Expenses | |||||||
Incentive fee | 6,434 | 5,408 | |||||
Management fee | 8,692 | 7,614 | |||||
Interest and other financing expenses | 11,290 | 8,376 | |||||
Professional fees | 694 | 850 | |||||
Administrative expenses | 939 | 708 | |||||
Other general and administrative expenses | 410 | 466 | |||||
Total expenses | 28,459 | 23,422 | |||||
Less: management and incentive fees waived (See Note 5) | (1,322 | ) | (3,156 | ) | |||
Less: expenses waived and reimbursed (See Note 5) | — | (470 | ) | ||||
Net expenses | 27,137 | 19,796 | |||||
Net investment income before income taxes | 25,752 | 23,511 | |||||
Income tax expense | 16 | 80 | |||||
Net investment income | 25,736 | 23,431 | |||||
Net realized gains (losses): | |||||||
Non-controlled/non-affiliated investments | 206 | 826 | |||||
Net change in unrealized appreciation (depreciation): | |||||||
Non-controlled/non-affiliated investments | (3,521 | ) | 7,979 | ||||
Non-controlled/affiliated investments | 1,809 | (296 | ) | ||||
Controlled investments | (456 | ) | (1,478 | ) | |||
Securities purchased under collateralized agreements to resell | (12 | ) | (800 | ) | |||
Benefit for taxes | 82 | 755 | |||||
Net realized and unrealized gains (losses) | (1,892 | ) | 6,986 | ||||
Net increase in net assets resulting from operations | $ | 23,844 | $ | 30,417 | |||
Basic earnings per share | $ | 0.31 | $ | 0.44 | |||
Weighted average shares of common stock outstanding - basic (See Note 11) | 75,935,093 | 69,718,968 | |||||
Diluted earnings per share | $ | 0.30 | $ | 0.40 | |||
Weighted average shares of common stock outstanding - diluted (See Note 11) | 85,759,220 | 79,543,095 | |||||
Distributions declared and paid per share | $ | 0.34 | $ | 0.34 |
Three Months Ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Increase (decrease) in net assets resulting from operations: | |||||||
Net investment income | $ | 25,736 | $ | 23,431 | |||
Net realized gains on investments | 206 | 826 | |||||
Net change in unrealized (depreciation) appreciation of investments | (2,168 | ) | 6,205 | ||||
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell | (12 | ) | (800 | ) | |||
Benefit for taxes | 82 | 755 | |||||
Net increase in net assets resulting from operations | 23,844 | 30,417 | |||||
Capital transactions | |||||||
Distributions declared to stockholders from net investment income | (25,818 | ) | (23,704 | ) | |||
Reinvestment of distributions | — | 1,548 | |||||
Other | — | (81 | ) | ||||
Total net decrease in net assets resulting from capital transactions | (25,818 | ) | (22,237 | ) | |||
Net (decrease) increase in net assets | (1,974 | ) | 8,180 | ||||
Net assets at the beginning of the period | 1,034,975 | 938,562 | |||||
Net assets at the end of the period | $ | 1,033,001 | $ | 946,742 | |||
Capital share activity | |||||||
Shares issued from the reinvestment of distributions | — | 66,306 | |||||
Shares reissued from repurchase program in connection with the reinvestment of distributions | — | 37,573 | |||||
Net increase in shares outstanding | — | 103,879 |
Three Months Ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Cash flows from operating activities | |||||||
Net increase in net assets resulting from operations | $ | 23,844 | $ | 30,417 | |||
Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash provided by (used in) operating activities: | |||||||
Net realized gains on investments | (206 | ) | (826 | ) | |||
Net change in unrealized depreciation (appreciation) of investments | 2,168 | (6,205 | ) | ||||
Net change in unrealized depreciation (appreciation) of securities purchased under collateralized agreements to resell | 12 | 800 | |||||
Amortization of purchase discount | (926 | ) | (747 | ) | |||
Amortization of deferred financing costs | 1,307 | 988 | |||||
Amortization of premium on Convertible Notes | (27 | ) | (27 | ) | |||
Non-cash investment income | (4,292 | ) | (1,933 | ) | |||
(Increase) decrease in operating assets: | |||||||
Purchase of investments and delayed draw facilities | (237,846 | ) | (349,477 | ) | |||
Proceeds from sales and paydowns of investments | 87,141 | 133,801 | |||||
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities | 29 | 120 | |||||
Cash paid on drawn revolvers | (5,423 | ) | (3,970 | ) | |||
Cash repayments on drawn revolvers | 7,092 | 1,159 | |||||
Interest and dividend receivable | (4,923 | ) | (3,881 | ) | |||
Receivable from unsettled securities sold | — | (691 | ) | ||||
Receivable from affiliates | (308 | ) | (369 | ) | |||
Other assets | 1,781 | (967 | ) | ||||
Increase (decrease) in operating liabilities: | |||||||
Payable for unsettled securities purchased | 29,841 | 47,811 | |||||
Management fee payable | 7,370 | 6,258 | |||||
Incentive fee payable | 6,434 | 3,608 | |||||
Interest payable | 2,094 | 2,478 | |||||
Payable to affiliates | 1,213 | 276 | |||||
Deferred tax liability | (82 | ) | (755 | ) | |||
Other liabilities | (101 | ) | 298 | ||||
Net cash flows used in operating activities | (83,808 | ) | (141,834 | ) | |||
Cash flows from financing activities | |||||||
Distributions paid | (25,818 | ) | (22,156 | ) | |||
Offering costs paid | — | (58 | ) | ||||
Proceeds from Holdings Credit Facility | 94,500 | 165,600 | |||||
Repayment of Holdings Credit Facility | (51,200 | ) | (122,200 | ) | |||
Proceeds from Unsecured Notes | 90,000 | — | |||||
Proceeds from NMFC Credit Facility | 65,000 | 122,500 | |||||
Repayment of NMFC Credit Facility | (92,500 | ) | (10,000 | ) | |||
Other | — | (81 | ) | ||||
Deferred financing costs paid | (1,474 | ) | (36 | ) | |||
Net cash flows provided by financing activities | 78,508 | 133,569 | |||||
Net decrease in cash and cash equivalents | (5,300 | ) | (8,265 | ) | |||
Cash and cash equivalents at the beginning of the period | 34,936 | 45,928 | |||||
Cash and cash equivalents at the end of the period | $ | 29,636 | $ | 37,663 | |||
Supplemental disclosure of cash flow information | |||||||
Cash interest paid | $ | 7,577 | $ | 4,570 | |||
Income taxes paid | 3 | 12 | |||||
Non-cash financing activities: | |||||||
Value of shares issued in connection with the distribution reinvestment plan | $ | — | $ | 988 | |||
Value of shares reissued from repurchase program in connection with the distribution reinvestment plan | — | 560 | |||||
Accrual for offering costs | 944 | 540 | |||||
Accrual for deferred financing costs | 171 | 63 |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Non-Controlled/Non-Affiliated Investments | |||||||||||||||||||||||
Funded Debt Investments - United Kingdom | |||||||||||||||||||||||
Shine Acquisition Co. S.à.r.l. / Boing US Holdco Inc.** | |||||||||||||||||||||||
Consumer Services | Second lien (3) | 9.29% (L + 7.50%/Q) | 9/25/2017 | 10/3/2025 | $ | 40,353 | $ | 40,064 | $ | 40,480 | 3.92 | % | |||||||||||
Air Newco LLC** | |||||||||||||||||||||||
Software | Second lien (3) | 11.37% (L + 9.50%/Q) | 1/30/2015 | 1/31/2023 | 40,000 | 39,068 | 39,600 | 3.83 | % | ||||||||||||||
Total Funded Debt Investments - United Kingdom | $ | 80,353 | $ | 79,132 | $ | 80,080 | 7.75 | % | |||||||||||||||
Funded Debt Investments - United States | |||||||||||||||||||||||
Benevis Holding Corp. | |||||||||||||||||||||||
Healthcare Services | First lien (2) | 8.50% (L + 6.32%/Q) | 3/15/2018 | 3/15/2024 | $ | 58,824 | $ | 58,824 | $ | 58,824 | |||||||||||||
First lien (3) | 8.50% (L + 6.32%/Q) | 3/15/2018 | 3/15/2024 | 20,691 | 20,691 | 20,691 | |||||||||||||||||
79,515 | 79,515 | 79,515 | 7.70 | % | |||||||||||||||||||
AmWINS Group, Inc. | |||||||||||||||||||||||
Business Services | Second lien (3) | 8.63% (L + 6.75%/Q) | 1/19/2017 | 1/25/2025 | 57,000 | 56,810 | 57,570 | 5.57 | % | ||||||||||||||
Alegeus Technologies, LLC | |||||||||||||||||||||||
Healthcare Services | Second lien (3)(10) | 10.80% (L + 8.50%/Q) | 4/28/2017 | 10/30/2023 | 23,500 | 23,500 | 23,500 | ||||||||||||||||
Second lien (4)(10) | 10.80% (L + 8.50%/Q) | 4/28/2017 | 10/30/2023 | 22,500 | 22,500 | 22,500 | |||||||||||||||||
46,000 | 46,000 | 46,000 | 4.45 | % | |||||||||||||||||||
Integro Parent Inc. | |||||||||||||||||||||||
Business Services | First lien (2) | 7.56% (L + 5.75%/Q) | 10/9/2015 | 10/31/2022 | 34,784 | 34,525 | 34,784 | ||||||||||||||||
Second lien (3) | 11.02% (L + 9.25%/Q) | 10/9/2015 | 10/30/2023 | 10,000 | 9,922 | 9,800 | |||||||||||||||||
44,784 | 44,447 | 44,584 | 4.32 | % | |||||||||||||||||||
Severin Acquisition, LLC | |||||||||||||||||||||||
Software | Second lien (4)(10) | 10.63% (L + 8.75%/M) | 7/31/2015 | 7/29/2022 | 15,000 | 14,896 | 15,000 | ||||||||||||||||
Second lien (3)(10) | 10.63% (L + 8.75%/M) | 2/1/2017 | 7/29/2022 | 14,518 | 14,368 | 14,518 | |||||||||||||||||
Second lien (4)(10) | 10.63% (L + 8.75%/M) | 11/5/2015 | 7/29/2022 | 4,154 | 4,124 | 4,154 | |||||||||||||||||
Second lien (4)(10) | 11.13% (L + 9.25%/M) | 2/1/2016 | 7/29/2022 | 3,273 | 3,249 | 3,273 | |||||||||||||||||
Second lien (3)(10) | 10.88% (L + 9.00%/M) | 10/14/2016 | 7/29/2022 | 2,361 | 2,342 | 2,361 | |||||||||||||||||
Second lien (3)(10) | 11.13% (L + 9.25%/M) | 8/8/2016 | 7/29/2022 | 1,825 | 1,810 | 1,825 | |||||||||||||||||
Second lien (4)(10) | 11.13% (L + 9.25%/M) | 8/8/2016 | 7/29/2022 | 300 | 298 | 300 | |||||||||||||||||
41,431 | 41,087 | 41,431 | 4.01 | % | |||||||||||||||||||
Salient CRGT Inc. | |||||||||||||||||||||||
Federal Services | First lien (2) | 7.63% (L + 5.75%/M) | 1/6/2015 | 2/28/2022 | 39,882 | 39,445 | 40,380 | 3.91 | % | ||||||||||||||
Tenawa Resource Holdings LLC (13) | |||||||||||||||||||||||
Tenawa Resource Management LLC | |||||||||||||||||||||||
Energy | First lien (3)(10) | 10.50% (Base + 8.00%/Q) | 5/12/2014 | 10/30/2024 | 39,800 | 39,737 | 39,800 | 3.85 | % | ||||||||||||||
VetCor Professional Practices LLC | |||||||||||||||||||||||
Consumer Services | First lien (4) | 8.56% (L + 6.25%/Q) | 5/15/2015 | 4/20/2021 | 19,062 | 18,955 | 19,085 | ||||||||||||||||
First lien (2) | 8.56% (L + 6.25%/Q) | 5/15/2015 | 4/20/2021 | 7,694 | 7,591 | 7,704 | |||||||||||||||||
First lien (3)(11) - Drawn | 8.56% (L + 6.25%/Q) | 2/24/2017 | 4/20/2021 | 5,990 | 5,884 | 5,998 | |||||||||||||||||
First lien (4) | 8.56% (L + 6.25%/Q) | 5/15/2015 | 4/20/2021 | 2,644 | 2,627 | 2,647 | |||||||||||||||||
First lien (3)(11) - Drawn | 8.56% (L + 6.25%/Q) | 6/24/2016 | 4/20/2021 | 1,881 | 1,865 | 1,884 | |||||||||||||||||
First lien (2) | 8.56% (L + 6.25%/Q) | 3/31/2016 | 4/20/2021 | 1,628 | 1,603 | 1,630 | |||||||||||||||||
First lien (4) | 8.56% (L + 6.25%/Q) | 5/15/2015 | 4/20/2021 | 494 | 487 | 494 | |||||||||||||||||
39,393 | 39,012 | 39,442 | 3.82 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Frontline Technologies Group Holdings, LLC | |||||||||||||||||||||||
Education | First lien (2)(10) | 8.38% (L + 6.50%/M) | 9/18/2017 | 9/18/2023 | $ | 16,708 | $ | 16,592 | $ | 16,583 | |||||||||||||
First lien (4)(10) | 8.38% (L + 6.50%/M) | 9/18/2017 | 9/18/2023 | 22,557 | 22,400 | 22,388 | |||||||||||||||||
39,265 | 38,992 | 38,971 | 3.77 | % | |||||||||||||||||||
NM GRC Holdco, LLC | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 7.80% (L + 5.50%/Q) | 2/9/2018 | 2/9/2024 | 38,930 | 38,739 | 38,735 | 3.75 | % | ||||||||||||||
Kronos Incorporated | |||||||||||||||||||||||
Software | Second lien (2) | 10.02% (L + 8.25%/Q) | 10/26/2012 | 11/1/2024 | 36,000 | 35,520 | 37,425 | 3.62 | % | ||||||||||||||
Valet Waste Holdings, Inc. | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 8.14% (L + 6.25%/M) | 9/24/2015 | 9/24/2021 | 29,250 | 29,018 | 29,250 | ||||||||||||||||
First lien (2)(10) | 8.14% (L + 6.25%/M) | 7/27/2017 | 9/24/2021 | 3,722 | 3,690 | 3,722 | |||||||||||||||||
First lien (3)(10)(11) - Drawn | 8.89% (L + 7.00%/M) | 9/24/2015 | 9/24/2021 | 600 | 593 | 600 | |||||||||||||||||
33,572 | 33,301 | 33,572 | 3.25 | % | |||||||||||||||||||
Navicure, Inc. | |||||||||||||||||||||||
Healthcare Services | Second lien (3) | 9.38% (L + 7.50%/M) | 10/23/2017 | 10/31/2025 | 31,470 | 31,385 | 31,627 | 3.06 | % | ||||||||||||||
Evo Payments International, LLC | |||||||||||||||||||||||
Business Services | Second lien (2) | 10.88% (L + 9.00%/M) | 12/8/2016 | 12/23/2024 | 25,000 | 24,827 | 25,250 | ||||||||||||||||
Second lien (3) | 10.88% (L + 9.00%/M) | 12/8/2016 | 12/23/2024 | 5,000 | 5,052 | 5,050 | |||||||||||||||||
30,000 | 29,879 | 30,300 | 2.93 | % | |||||||||||||||||||
Wirepath LLC | |||||||||||||||||||||||
Distribution & Logistics | First lien (2) | 6.80% (L + 4.50%/Q) | 7/31/2017 | 8/5/2024 | 27,661 | 27,533 | 27,895 | 2.70 | % | ||||||||||||||
Ansira Holdings, Inc. | |||||||||||||||||||||||
Business Services | First lien (2) | 8.80% (L + 6.50%/Q) | 12/19/2016 | 12/20/2022 | 25,855 | 25,748 | 25,790 | ||||||||||||||||
First lien (3)(11) - Drawn | 8.80% (L + 6.50%/Q) | 12/19/2016 | 12/20/2022 | 2,102 | 2,093 | 2,097 | |||||||||||||||||
27,957 | 27,841 | 27,887 | 2.70 | % | |||||||||||||||||||
Trader Interactive, LLC | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 7.85% (L + 6.00%/M) | 6/15/2017 | 6/17/2024 | 27,122 | 26,937 | 26,919 | 2.61 | % | ||||||||||||||
TW-NHME Holdings Corp. (20) | |||||||||||||||||||||||
National HME, Inc. | |||||||||||||||||||||||
Healthcare Services | Second lien (4)(10) | 11.55% (L + 9.25%/Q) | 7/14/2015 | 7/14/2022 | 21,500 | 21,309 | 20,702 | ||||||||||||||||
Second lien (3)(10) | 11.55% (L + 9.25%/Q) | 7/14/2015 | 7/14/2022 | 5,800 | 5,740 | 5,585 | |||||||||||||||||
27,300 | 27,049 | 26,287 | 2.54 | % | |||||||||||||||||||
Keystone Acquisition Corp. | |||||||||||||||||||||||
Healthcare Services | First lien (2) | 7.55% (L + 5.25%/Q) | 5/10/2017 | 5/1/2024 | 19,900 | 19,720 | 20,024 | ||||||||||||||||
Second lien (3) | 11.55% (L + 9.25%/Q) | 5/10/2017 | 5/1/2025 | 4,500 | 4,458 | 4,556 | |||||||||||||||||
24,400 | 24,178 | 24,580 | 2.38 | % | |||||||||||||||||||
iPipeline, Inc. (Internet Pipeline, Inc.) | |||||||||||||||||||||||
Software | First lien (4)(10) | 9.14% (L + 7.25%/M) | 8/4/2015 | 8/4/2022 | 17,550 | 17,430 | 17,550 | ||||||||||||||||
First lien (4)(10) | 8.06% (L + 6.25%/M) | 6/16/2017 | 8/4/2022 | 4,566 | 4,546 | 4,543 | |||||||||||||||||
First lien (2)(10) | 8.04% (L + 6.25%/M) | 9/25/2017 | 8/4/2022 | 1,158 | 1,153 | 1,152 | |||||||||||||||||
First lien (4)(10) | 8.04% (L + 6.25%/M) | 9/25/2017 | 8/4/2022 | 509 | 507 | 507 | |||||||||||||||||
23,783 | 23,636 | 23,752 | 2.30 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
AAC Holding Corp. | |||||||||||||||||||||||
Education | First lien (2)(10) | 9.92% (L + 8.25%/M) | 9/30/2015 | 9/30/2020 | $ | 22,971 | $ | 22,781 | $ | 22,971 | 2.22 | % | |||||||||||
TWDiamondback Holdings Corp. (15) | |||||||||||||||||||||||
Diamondback Drugs of Delaware, L.L.C. (TWDiamondback II Holdings LLC) | |||||||||||||||||||||||
Distribution & Logistics | First lien (4)(10) | 11.22% (L + 8.75%/Q) | 11/19/2014 | 11/19/2019 | 19,895 | 19,895 | 19,895 | ||||||||||||||||
First lien (3)(10) | 10.79% (L + 8.75%/Q) | 11/19/2014 | 11/19/2019 | 2,158 | 2,158 | 2,158 | |||||||||||||||||
First lien (4)(10) | 10.79% (L + 8.75%/Q) | 11/19/2014 | 11/19/2019 | 605 | 605 | 605 | |||||||||||||||||
22,658 | 22,658 | 22,658 | 2.19 | % | |||||||||||||||||||
EN Engineering, LLC | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 8.30% (L + 6.00%/Q) | 7/30/2015 | 6/30/2021 | 20,839 | 20,715 | 20,839 | ||||||||||||||||
First lien (2)(10) | 8.30% (L + 6.00%/Q) | 7/30/2015 | 6/30/2021 | 1,205 | 1,197 | 1,205 | |||||||||||||||||
22,044 | 21,912 | 22,044 | 2.13 | % | |||||||||||||||||||
Avatar Topco, Inc. (23) | |||||||||||||||||||||||
EAB Global, Inc. | |||||||||||||||||||||||
Education | Second lien (3) | 9.23% (L + 7.50%/Q) | 11/17/2017 | 11/17/2025 | 21,450 | 21,139 | 21,450 | 2.08 | % | ||||||||||||||
DigiCert Holdings, Inc. | |||||||||||||||||||||||
Business Services | Second lien (3) | 9.77% (L + 8.00%/M) | 9/20/2017 | 10/31/2025 | 20,176 | 20,079 | 20,378 | 1.97 | % | ||||||||||||||
OEConnection LLC | |||||||||||||||||||||||
Business Services | Second lien (3) | 10.46% (L + 8.00%/Q) | 11/22/2017 | 11/22/2025 | 20,213 | 19,943 | 20,213 | 1.96 | % | ||||||||||||||
Help/Systems Holdings, Inc. | |||||||||||||||||||||||
Software | Second lien (5) | 10.05% (L+ 7.75%/Q) | 3/23/2018 | 3/27/2026 | 20,231 | 20,130 | 20,130 | 1.95 | % | ||||||||||||||
DiversiTech Holdings, Inc. | |||||||||||||||||||||||
Distribution & Logistics | Second lien (3) | 9.81% (L + 7.50%/Q) | 5/18/2017 | 6/2/2025 | 19,500 | 19,319 | 19,744 | 1.91 | % | ||||||||||||||
ABILITY Network Inc. | |||||||||||||||||||||||
Healthcare Information Technology | Second lien (3) | 9.54% (L + 7.75%/M) | 12/11/2017 | 12/12/2025 | 18,851 | 18,839 | 18,933 | 1.83 | % | ||||||||||||||
AgKnowledge Holdings Company, Inc. | |||||||||||||||||||||||
Business Services | Second lien (2)(10) | 10.13% (L + 8.25%/M) | 7/23/2014 | 7/23/2020 | 18,500 | 18,417 | 18,500 | 1.79 | % | ||||||||||||||
KeyPoint Government Solutions, Inc. | |||||||||||||||||||||||
Federal Services | First lien (2)(10) | 7.73% (L + 6.00%/M) | 4/18/2017 | 4/18/2024 | 18,173 | 18,012 | 18,355 | 1.78 | % | ||||||||||||||
BackOffice Associates Holdings, L.L.C. | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 9.38% (L + 7.50%/M) | 8/25/2017 | 8/25/2023 | 18,502 | 18,354 | 18,341 | 1.78 | % | ||||||||||||||
SW Holdings, LLC | |||||||||||||||||||||||
Business Services | Second lien (4)(10) | 11.05% (L + 8.75%/Q) | 6/30/2015 | 12/30/2021 | 18,161 | 18,030 | 18,260 | 1.77 | % | ||||||||||||||
VF Holding Corp. | |||||||||||||||||||||||
Software | Second lien (3)(10) | 10.88% (L + 9.00%/M) | 7/7/2016 | 6/28/2024 | 17,086 | 17,387 | 17,427 | 1.69 | % | ||||||||||||||
DCA Investment Holding, LLC | |||||||||||||||||||||||
Healthcare Services | First lien (2)(10) | 7.56% (L + 5.25%/Q) | 7/2/2015 | 7/2/2021 | 17,408 | 17,306 | 17,408 | 1.69 | % | ||||||||||||||
TIBCO Software Inc. | |||||||||||||||||||||||
Software | Subordinated (3) | 11.38%/S | 11/24/2014 | 12/1/2021 | 15,000 | 14,729 | 16,359 | 1.58 | % | ||||||||||||||
Hill International, Inc.** | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 7.63% (L + 5.75%/M) | 6/21/2017 | 6/21/2023 | 15,682 | 15,611 | 15,603 | 1.51 | % | ||||||||||||||
FR Arsenal Holdings II Corp. | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 9.31% (L + 7.25%/Q) | 9/29/2016 | 9/8/2022 | 15,317 | 15,189 | 15,348 | 1.49 | % | ||||||||||||||
Netsmart Inc. / Netsmart Technologies, Inc. | |||||||||||||||||||||||
Healthcare Information Technology | Second lien (2) | 11.38% (L + 9.50%/Q) | 4/18/2016 | 10/19/2023 | 15,000 | 14,695 | 15,075 | 1.46 | % | ||||||||||||||
Xactly Corporation | |||||||||||||||||||||||
Software | First lien (4)(10) | 9.14% (L + 7.25%/M) | 7/31/2017 | 7/29/2022 | 14,690 | 14,557 | 14,543 | 1.41 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Transcendia Holdings, Inc. | |||||||||||||||||||||||
Packaging | Second lien (3) | 9.88% (L + 8.00%/M) | 6/28/2017 | 5/30/2025 | $ | 14,500 | $ | 14,313 | $ | 14,391 | 1.39 | % | |||||||||||
Peraton Holding Corp. (fka MHVC Acquisition Corp.) | |||||||||||||||||||||||
Federal Services | First lien (2) | 7.56% (L + 5.25%/Q) | 4/25/2017 | 4/29/2024 | 13,994 | 13,953 | 14,099 | 1.36 | % | ||||||||||||||
Ministry Brands, LLC | |||||||||||||||||||||||
Software | First lien (3) | 6.88% (L + 5.00%/M) | 12/7/2016 | 12/2/2022 | 2,985 | 2,973 | 2,985 | ||||||||||||||||
Second lien (3)(10) | 11.13% (L + 9.25%/M) | 12/7/2016 | 6/2/2023 | 7,840 | 7,790 | 7,840 | |||||||||||||||||
Second lien (3)(10) | 11.13% (L + 9.25%/M) | 12/7/2016 | 6/2/2023 | 2,160 | 2,146 | 2,160 | |||||||||||||||||
First lien (3)(10)(11) - Drawn | 6.78% (L + 5.00%/Q) | 12/7/2016 | 12/2/2022 | 600 | 597 | 600 | |||||||||||||||||
13,585 | 13,506 | 13,585 | 1.32 | % | |||||||||||||||||||
Project Accelerate Parent, LLC | |||||||||||||||||||||||
Business Services | Second lien (3)(10) | 10.19% (L + 8.50%/Q) | 1/2/2018 | 1/2/2026 | 13,473 | 13,308 | 13,305 | 1.29 | % | ||||||||||||||
American Tire Distributors, Inc. | |||||||||||||||||||||||
Distribution & Logistics | Subordinated (3) | 10.25%/S | 2/10/2015 | 3/1/2022 | 12,520 | 12,279 | 12,849 | 1.24 | % | ||||||||||||||
nThrive, Inc. (fka Precyse Acquisition Corp.) | |||||||||||||||||||||||
Healthcare Services | Second lien (2)(10) | 11.63% (L + 9.75%/M) | 4/19/2016 | 4/20/2023 | 13,000 | 12,820 | 12,574 | 1.22 | % | ||||||||||||||
SSH Group Holdings, Inc. | |||||||||||||||||||||||
Education | First lien (2)(10) | 7.45% (L + 5.00%/Q) | 10/13/2017 | 10/2/2024 | 8,386 | 8,346 | 8,344 | ||||||||||||||||
Second lien (3)(10) | 11.45% (L + 9.00%/Q) | 10/13/2017 | 10/2/2025 | 3,363 | 3,330 | 3,329 | |||||||||||||||||
11,749 | 11,676 | 11,673 | 1.13 | % | |||||||||||||||||||
ProQuest LLC | |||||||||||||||||||||||
Business Services | Second lien (3) | 10.88% (L + 9.00%/M) | 12/14/2015 | 12/15/2022 | 11,620 | 11,447 | 11,620 | 1.12 | % | ||||||||||||||
Zywave, Inc. | |||||||||||||||||||||||
Software | Second lien (4)(10) | 10.87% (L + 9.00%/Q) | 11/22/2016 | 11/17/2023 | 11,000 | 10,929 | 11,022 | ||||||||||||||||
First lien (3)(10)(11) - Drawn | 6.57% (L + 5.00%/Q) | 11/22/2016 | 11/17/2022 | 500 | 496 | 500 | |||||||||||||||||
11,500 | 11,425 | 11,522 | 1.12 | % | |||||||||||||||||||
Amerijet Holdings, Inc. | |||||||||||||||||||||||
Distribution & Logistics | First lien (4)(10) | 9.65% (L + 8.00%/M) | 7/15/2016 | 7/15/2021 | 9,455 | 9,405 | 9,494 | ||||||||||||||||
First lien (4)(10) | 9.65% (L + 8.00%/M) | 7/15/2016 | 7/15/2021 | 1,576 | 1,567 | 1,582 | |||||||||||||||||
11,031 | 10,972 | 11,076 | 1.07 | % | |||||||||||||||||||
Vectra Co. | |||||||||||||||||||||||
Business Products | Second lien (3) | 8.96% (L + 7.25%/M) | 2/23/2018 | 3/8/2026 | 10,788 | 10,748 | 10,896 | 1.05 | % | ||||||||||||||
Masergy Holdings, Inc. | |||||||||||||||||||||||
Business Services | Second lien (2) | 9.80% (L + 7.50%/Q) | 12/14/2016 | 12/16/2024 | 10,500 | 10,448 | 10,583 | 1.02 | % | ||||||||||||||
QC McKissock Investment, LLC (14) | |||||||||||||||||||||||
McKissock, LLC | |||||||||||||||||||||||
Education | First lien (2)(10) | 8.30% (L + 6.00%/Q) | 8/6/2014 | 8/5/2021 | 6,399 | 6,372 | 6,399 | ||||||||||||||||
First lien (2)(10) | 8.30% (L + 6.00%/Q) | 8/6/2014 | 8/5/2021 | 3,051 | 3,040 | 3,051 | |||||||||||||||||
First lien (2)(10) | 8.30% (L + 6.00%/Q) | 8/6/2014 | 8/5/2021 | 985 | 980 | 985 | |||||||||||||||||
10,435 | 10,392 | 10,435 | 1.01 | % | |||||||||||||||||||
Idera, Inc. | |||||||||||||||||||||||
Software | Second lien (4) | 10.88% (L + 9.00%/M) | 6/27/2017 | 6/27/2025 | 10,000 | 9,859 | 10,200 | 0.99 | % | ||||||||||||||
Quest Software US Holdings Inc. | |||||||||||||||||||||||
Software | First lien (2) | 7.27% (L + 5.50%/M) | 10/31/2016 | 10/31/2022 | 9,899 | 9,780 | 10,095 | 0.98 | % | ||||||||||||||
PowerPlan Holdings, Inc. | |||||||||||||||||||||||
Software | Second lien (2)(10) | 10.88% (L + 9.00%/M) | 2/23/2015 | 2/23/2023 | 10,000 | 9,929 | 10,000 | 0.97 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
FPC Holdings, Inc. | |||||||||||||||||||||||
Distribution & Logistics | Second lien (3) | 10.88% (L + 9.00%/Q) | 3/28/2018 | 5/19/2023 | $ | 10,116 | $ | 9,711 | $ | 9,711 | 0.94 | % | |||||||||||
WD Wolverine Holdings, LLC | |||||||||||||||||||||||
Healthcare Services | First lien (2) | 7.38% (L + 5.50%/Q) | 2/22/2017 | 8/16/2022 | 9,750 | 9,486 | 9,671 | 0.94 | % | ||||||||||||||
Pelican Products, Inc. | |||||||||||||||||||||||
Business Products | Second lien (2) | 10.13% (L + 8.25%/Q) | 4/9/2014 | 4/9/2021 | 9,500 | 9,531 | 9,548 | 0.92 | % | ||||||||||||||
J.D. Power (fka J.D. Power and Associates) | |||||||||||||||||||||||
Business Services | Second lien (3) | 10.80% (L + 8.50%/Q) | 6/9/2016 | 9/7/2024 | 9,333 | 9,232 | 9,473 | 0.92 | % | ||||||||||||||
Harley Marine Services, Inc. | |||||||||||||||||||||||
Distribution & Logistics | Second lien (2) | 12.00% (L + 10.25%/M) | 12/18/2013 | 12/20/2019 | 9,000 | 8,937 | 8,955 | 0.87 | % | ||||||||||||||
JAMF Holdings, Inc. | |||||||||||||||||||||||
Software | First lien (3)(10) | 9.82% (L + 8.00%/Q) | 11/13/2017 | 11/11/2022 | 8,757 | 8,675 | 8,670 | 0.84 | % | ||||||||||||||
Autodata, Inc. (Autodata Solutions, Inc.) | |||||||||||||||||||||||
Business Services | Second lien (3) | 9.01% (L + 7.25%/M) | 12/12/2017 | 12/12/2025 | 7,406 | 7,388 | 7,517 | 0.73 | % | ||||||||||||||
MH Sub I, LLC (Micro Holding Corp.) | |||||||||||||||||||||||
Software | Second lien (3) | 9.28% (L + 7.50%/Q) | 8/16/2017 | 9/15/2025 | 7,000 | 6,933 | 7,101 | 0.69 | % | ||||||||||||||
DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC) | |||||||||||||||||||||||
Business Services | Second lien (3) | 9.05% (L + 6.75%/Q) | 1/29/2018 | 2/2/2026 | 6,732 | 6,699 | 6,833 | 0.66 | % | ||||||||||||||
First American Payment Systems, L.P. | |||||||||||||||||||||||
Business Services | First lien (2) | 6.44% (L + 4.75%/M) | 1/3/2017 | 1/5/2024 | 6,688 | 6,630 | 6,763 | 0.66 | % | ||||||||||||||
CP VI Bella Midco, LLC | |||||||||||||||||||||||
Healthcare Services | Second lien (3) | 8.63% (L + 6.75%/M) | 1/25/2018 | 12/29/2025 | 6,732 | 6,699 | 6,741 | 0.65 | % | ||||||||||||||
Pathway Partners Vet Management Company LLC | |||||||||||||||||||||||
Consumer Services | Second lien (4) | 9.88% (L + 8.00%/M) | 10/4/2017 | 10/10/2025 | 5,556 | 5,528 | 5,527 | ||||||||||||||||
Second lien (4)(11) - Drawn | 9.88% (L + 8.00%/M) | 10/4/2017 | 10/10/2025 | 698 | 694 | 694 | |||||||||||||||||
6,254 | 6,222 | 6,221 | 0.60 | % | |||||||||||||||||||
Solera LLC / Solera Finance, Inc. | |||||||||||||||||||||||
Software | Subordinated (3) | 10.50%/S | 2/29/2016 | 3/1/2024 | 5,000 | 4,797 | 5,588 | 0.54 | % | ||||||||||||||
Applied Systems, Inc. | |||||||||||||||||||||||
Software | Second lien (3) | 9.30% (L + 7.00%/Q) | 9/14/2017 | 9/19/2025 | 4,923 | 4,923 | 5,102 | 0.49 | % | ||||||||||||||
ADG, LLC | |||||||||||||||||||||||
Healthcare Services | Second lien (3)(10) | 10.88% (L + 9.00%/M) | 10/3/2016 | 3/28/2024 | 5,000 | 4,936 | 5,037 | 0.49 | % | ||||||||||||||
Vencore, Inc. (fka The SI Organization Inc.) | |||||||||||||||||||||||
Federal Services | Second lien (3) | 10.63% (L + 8.75%/Q) | 6/14/2016 | 5/23/2020 | 4,400 | 4,355 | 4,439 | 0.43 | % | ||||||||||||||
Affinity Dental Management, Inc. | |||||||||||||||||||||||
Healthcare Services | First lien (2)(10) | 8.30% (L + 6.00%/Q) | 9/15/2017 | 9/15/2023 | 4,344 | 4,304 | 4,301 | 0.42 | % | ||||||||||||||
York Risk Services Holding Corp. | |||||||||||||||||||||||
Business Services | Subordinated (3) | 8.50%/S | 9/17/2014 | 10/1/2022 | 3,000 | 3,000 | 2,820 | 0.27 | % | ||||||||||||||
Ensemble S Merger Sub, Inc. | |||||||||||||||||||||||
Software | Subordinated (3) | 9.00%/S | 9/21/2015 | 9/30/2023 | 2,000 | 1,948 | 2,110 | 0.20 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Education Management Corporation (12) | |||||||||||||||||||||||
Education Management II LLC | |||||||||||||||||||||||
Education | First lien (2) | 10.25% (P + 5.50%/Q)(24) | 1/5/2015 | 7/2/2020 | $ | 211 | $ | 205 | $ | 50 | |||||||||||||
First lien (3) | 10.25% (P + 5.50%/Q)(24) | 1/5/2015 | 7/2/2020 | 119 | 116 | 28 | |||||||||||||||||
First lien (2) | 13.25% (P + 8.50%/Q)(24) | 1/5/2015 | 7/2/2020 | 475 | 437 | 7 | |||||||||||||||||
First lien (3) | 13.25% (P + 8.50%/Q)(24) | 1/5/2015 | 7/2/2020 | 268 | 246 | 4 | |||||||||||||||||
1,073 | 1,004 | 89 | 0.01 | % | |||||||||||||||||||
Total Funded Debt Investments - United States | $ | 1,442,480 | $ | 1,432,395 | $ | 1,446,005 | 139.98 | % | |||||||||||||||
Total Funded Debt Investments | $ | 1,522,833 | $ | 1,511,527 | $ | 1,526,085 | 147.73 | % | |||||||||||||||
Equity - Hong Kong | |||||||||||||||||||||||
Bach Special Limited (Bach Preference Limited)** | |||||||||||||||||||||||
Education | Preferred shares (3)(10)(22) | — | 9/1/2017 | — | 60,711 | $ | 5,991 | $ | 5,988 | 0.58 | % | ||||||||||||
Total Shares - Hong Kong | $ | 5,991 | $ | 5,988 | 0.58 | % | |||||||||||||||||
Equity - United States | |||||||||||||||||||||||
Avatar Topco, Inc. | |||||||||||||||||||||||
Education | Preferred shares (3)(10)(23) | — | 11/17/2017 | — | 35,750 | $ | 36,372 | $ | 36,321 | 3.52 | % | ||||||||||||
Tenawa Resource Holdings LLC (13) | |||||||||||||||||||||||
QID NGL LLC | |||||||||||||||||||||||
Energy | Ordinary shares (7)(10) | — | 5/12/2014 | — | 5,290,997 | 5,291 | 7,855 | ||||||||||||||||
Preferred shares (7)(10) | — | 10/30/2017 | — | 620,706 | 621 | 970 | |||||||||||||||||
5,912 | 8,825 | 0.85 | % | ||||||||||||||||||||
TWDiamondback Holdings Corp. (15) | |||||||||||||||||||||||
Distribution & Logistics | Preferred shares (4)(10) | — | 11/19/2014 | — | 200 | 2,000 | 4,508 | 0.44 | % | ||||||||||||||
TW-NHME Holdings Corp. (20) | |||||||||||||||||||||||
Healthcare Services | Preferred shares (4)(10) | — | 7/14/2015 | — | 100 | 1,000 | 409 | ||||||||||||||||
Preferred shares (4)(10) | — | 1/5/2016 | — | 16 | 158 | 64 | |||||||||||||||||
Preferred shares (4)(10) | — | 6/30/2016 | — | 6 | 68 | 25 | |||||||||||||||||
Preferred shares (3)(10) | — | 3/29/2018 | — | 40 | 162 | 162 | |||||||||||||||||
1,388 | 660 | 0.06 | % | ||||||||||||||||||||
Ancora Acquisition LLC | |||||||||||||||||||||||
Education | Preferred shares (6)(10) | — | 8/12/2013 | — | 372 | 83 | 393 | 0.04 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Education Management Corporation (12) | |||||||||||||||||||||||
Education | Preferred shares (2) | — | 1/5/2015 | — | 3,331 | $ | 200 | $ | — | ||||||||||||||
Preferred shares (3) | — | 1/5/2015 | — | 1,879 | 113 | — | |||||||||||||||||
Ordinary shares (2) | — | 1/5/2015 | — | 2,994,065 | 100 | 11 | |||||||||||||||||
Ordinary shares (3) | — | 1/5/2015 | — | 1,688,976 | 56 | 6 | |||||||||||||||||
469 | 17 | — | % | ||||||||||||||||||||
Total Shares - United States | $ | 46,224 | $ | 50,724 | 4.91 | % | |||||||||||||||||
Total Shares | $ | 52,215 | $ | 56,712 | 5.49 | % | |||||||||||||||||
Warrants - United States | |||||||||||||||||||||||
ASP LCG Holdings, Inc. | |||||||||||||||||||||||
Education | Warrants (3)(10) | — | 5/5/2014 | 5/5/2026 | 622 | $ | 37 | $ | 452 | 0.04 | % | ||||||||||||
Ancora Acquisition LLC | |||||||||||||||||||||||
Education | Warrants (6)(10) | — | 8/12/2013 | 8/12/2020 | 20 | — | — | — | % | ||||||||||||||
Total Warrants - United States | $ | 37 | $ | 452 | 0.04 | % | |||||||||||||||||
Total Funded Investments | $ | 1,563,779 | $ | 1,583,249 | 153.26 | % | |||||||||||||||||
Unfunded Debt Investments - United States | |||||||||||||||||||||||
VetCor Professional Practices LLC | |||||||||||||||||||||||
Consumer Services | First lien (3)(11) - Undrawn | — | 5/15/2015 | 4/20/2021 | $ | 2,700 | $ | (27 | ) | $ | 3 | ||||||||||||
First lien (3)(11) - Undrawn | — | 12/29/2017 | 12/29/2019 | 6,671 | (58 | ) | 8 | ||||||||||||||||
9,371 | (85 | ) | 11 | — | % | ||||||||||||||||||
DCA Investment Holding, LLC | |||||||||||||||||||||||
Healthcare Services | First lien (3)(10)(11) - Undrawn | — | 7/2/2015 | 7/2/2021 | 2,100 | (21 | ) | — | |||||||||||||||
First lien (3)(10)(11) - Undrawn | — | 12/20/2017 | 7/2/2021 | 13,465 | (118 | ) | — | ||||||||||||||||
15,565 | (139 | ) | — | — | % | ||||||||||||||||||
iPipeline, Inc. (Internet Pipeline, Inc.) | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 8/4/2015 | 8/4/2021 | 1,000 | (10 | ) | — | — | % | |||||||||||||
Valet Waste Holdings, Inc. | |||||||||||||||||||||||
Business Services | First lien (3)(10)(11) - Undrawn | — | 9/24/2015 | 9/24/2021 | 3,150 | (39 | ) | — | — | % | |||||||||||||
Ministry Brands, LLC | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 12/7/2016 | 12/2/2022 | 400 | (2 | ) | — | — | % | |||||||||||||
Zywave, Inc. | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 11/22/2016 | 11/17/2022 | 1,500 | (11 | ) | — | — | % | |||||||||||||
Ansira Holdings, Inc. | |||||||||||||||||||||||
Business Services | First lien (3)(11) - Undrawn | — | 12/19/2016 | 12/20/2018 | 1,700 | (9 | ) | (4 | ) | — | % | ||||||||||||
JAMF Holdings, Inc. | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 11/13/2017 | 11/11/2022 | 750 | (8 | ) | (8 | ) | — | % | ||||||||||||
Pathway Partners Vet Management Company LLC | |||||||||||||||||||||||
Consumer Services | Second lien (4)(11) - Undrawn | — | 10/4/2017 | 10/10/2025 | 1,746 | (9 | ) | (9 | ) | — | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Xactly Corporation | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 7/31/2017 | 7/29/2022 | $ | 992 | $ | (10 | ) | $ | (10 | ) | — | % | |||||||||
Trader Interactive, LLC | |||||||||||||||||||||||
Business Services | First lien (3)(10)(11) - Undrawn | — | 6/15/2017 | 6/15/2023 | 1,673 | (13 | ) | (13 | ) | — | % | ||||||||||||
NM GRC Holdco, LLC | |||||||||||||||||||||||
Business Services | First lien (3)(10)(11) - Undrawn | — | 2/9/2018 | 2/9/2024 | 11,563 | (29 | ) | (29 | ) | — | % | ||||||||||||
BackOffice Associates Holdings, LLC | |||||||||||||||||||||||
Business Services | First lien (3)(10)(11) - Undrawn | — | 8/25/2017 | 8/24/2018 | 3,448 | (13 | ) | (13 | ) | ||||||||||||||
First lien (3)(10)(11) - Undrawn | — | 8/25/2017 | 8/25/2023 | 2,586 | (23 | ) | (23 | ) | |||||||||||||||
6,034 | (36 | ) | (36 | ) | — | % | |||||||||||||||||
Affinity Dental Management, Inc. | |||||||||||||||||||||||
Healthcare Services | First lien (3)(10)(11) - Undrawn | — | 9/15/2017 | 3/15/2019 | 11,584 | (29 | ) | (29 | ) | ||||||||||||||
First lien (3)(10)(11) - Undrawn | — | 9/15/2017 | 3/15/2023 | 1,737 | (17 | ) | (17 | ) | |||||||||||||||
13,321 | (46 | ) | (46 | ) | (0.01 | )% | |||||||||||||||||
Frontline Technologies Group Holdings, LLC | |||||||||||||||||||||||
Education | First lien (3)(10)(11) - Undrawn | — | 9/18/2017 | 9/18/2019 | 7,738 | (58 | ) | (58 | ) | (0.01 | )% | ||||||||||||
Total Unfunded Debt Investments - United States | $ | 76,503 | $ | (504 | ) | $ | (202 | ) | (0.02 | )% | |||||||||||||
Total Non-Controlled/Non-Affiliated Investments | $ | 1,563,275 | $ | 1,583,047 | 153.24 | % | |||||||||||||||||
Non-Controlled/Affiliated Investments (25) | |||||||||||||||||||||||
Funded Debt Investments - United States | |||||||||||||||||||||||
Permian Holdco 1, Inc. | |||||||||||||||||||||||
Permian Holdco 2, Inc. | |||||||||||||||||||||||
Energy | Subordinated (3)(10) | 14.00% PIK/Q* | 10/31/2016 | 10/15/2021 | $ | 2,077 | $ | 2,077 | $ | 2,077 | |||||||||||||
Subordinated (3)(10)(11) | 14.00% PIK/Q* | 10/31/2016 | 10/15/2021 | 1,070 | 1,070 | 1,070 | |||||||||||||||||
3,147 | 3,147 | 3,147 | 0.30 | % | |||||||||||||||||||
Total Funded Debt Investments - United States | $ | 3,147 | $ | 3,147 | $ | 3,147 | 0.30 | % | |||||||||||||||
Equity - United States | |||||||||||||||||||||||
HI Technology Corp. | |||||||||||||||||||||||
Business Services | Preferred shares (3)(10)(21) | — | 3/21/2017 | — | 2,768,000 | $ | 105,155 | $ | 107,450 | 10.40 | % | ||||||||||||
NMFC Senior Loan Program I LLC** | |||||||||||||||||||||||
Investment Fund | Membership interest (3)(10) | — | 6/13/2014 | — | — | 23,000 | 23,000 | 2.23 | % | ||||||||||||||
Sierra Hamilton Holdings Corporation | |||||||||||||||||||||||
Energy | Ordinary shares (2)(10) | — | 7/31/2017 | — | 25,000,000 | 11,501 | 11,208 | ||||||||||||||||
Ordinary shares (3)(10) | — | 7/31/2017 | — | 2,786,000 | 1,281 | 1,248 | |||||||||||||||||
12,782 | 12,456 | 1.21 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Permian Holdco 1, Inc. | |||||||||||||||||||||||
Energy | Preferred shares (3)(10)(17) | — | 10/31/2016 | — | 1,616,302 | $ | 7,087 | $ | 8,890 | ||||||||||||||
Ordinary shares (3)(10) | — | 10/31/2016 | — | 1,366,452 | 1,350 | 786 | |||||||||||||||||
8,437 | 9,676 | 0.94 | % | ||||||||||||||||||||
Total Shares - United States | $ | 149,374 | $ | 152,582 | 14.78 | % | |||||||||||||||||
Total Funded Investments | $ | 152,521 | $ | 155,729 | 15.08 | % | |||||||||||||||||
Total Non-Controlled/Affiliated Investments | $ | 152,521 | $ | 155,729 | 15.08 | % | |||||||||||||||||
Controlled Investments (26) | |||||||||||||||||||||||
Funded Debt Investments - United States | |||||||||||||||||||||||
Edmentum Ultimate Holdings, LLC (16) | |||||||||||||||||||||||
Edmentum Inc. (fka Plato, Inc.)(Archipelago Learning Inc.) | |||||||||||||||||||||||
Education | Second lien (3)(10) | 7.00% PIK/Q* | 2/23/2018 | 12/9/2021 | $ | 10,657 | $ | 9,906 | $ | 9,859 | |||||||||||||
Second lien (3)(10)(11) - Drawn | 5.00% PIK/Q* | 6/9/2015 | 6/9/2020 | 4,881 | 4,881 | 4,881 | |||||||||||||||||
Subordinated (3)(10) | 8.50% PIK/Q* | 6/9/2015 | 6/9/2020 | 4,588 | 4,584 | 4,588 | |||||||||||||||||
Subordinated (2)(10) | 10.00% PIK/Q* | 6/9/2015 | 6/9/2020 | 17,188 | 17,188 | 13,751 | |||||||||||||||||
Subordinated (3)(10) | 10.00% PIK/Q* | 6/9/2015 | 6/9/2020 | 4,228 | 4,228 | 3,383 | |||||||||||||||||
41,542 | 40,787 | 36,462 | 3.53 | % | |||||||||||||||||||
UniTek Global Services, Inc. | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 10.81% (L + 8.50%/Q) | 1/13/2015 | 1/13/2019 | 10,846 | 10,846 | 10,846 | ||||||||||||||||
First lien (2)(10) | 10.81% (L + 7.50%/M) | 1/13/2015 | 1/13/2019 | 799 | 799 | 799 | |||||||||||||||||
Subordinated (2)(10) | 15.00% PIK/Q* | 1/13/2015 | 7/13/2019 | 2,079 | 2,079 | 2,079 | |||||||||||||||||
Subordinated (3)(10) | 15.00% PIK/Q* | 1/13/2015 | 7/13/2019 | 1,244 | 1,244 | 1,244 | |||||||||||||||||
14,968 | 14,968 | 14,968 | 1.45 | % | |||||||||||||||||||
Total Funded Debt Investments - United States | $ | 56,510 | $ | 55,755 | $ | 51,430 | 4.98 | % | |||||||||||||||
Equity - Canada | |||||||||||||||||||||||
NM APP Canada Corp.** | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 9/13/2016 | — | — | $ | 7,345 | $ | 8,234 | 0.80 | % | ||||||||||||
Total Shares - Canada | $ | 7,345 | $ | 8,234 | 0.80 | % | |||||||||||||||||
Equity - United States | |||||||||||||||||||||||
NMFC Senior Loan Program II LLC** | |||||||||||||||||||||||
Investment Fund | Membership interest (3)(10) | — | 5/3/2016 | — | — | $ | 79,400 | $ | 79,400 | 7.69 | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
UniTek Global Services, Inc. | |||||||||||||||||||||||
Business Services | Preferred shares (2)(10)(18) | — | 1/13/2015 | — | 22,487,269 | $ | 20,107 | $ | 20,413 | ||||||||||||||
Preferred shares (3)(10)(19) | — | 6/30/2017 | — | 11,379,603 | 11,380 | 11,380 | |||||||||||||||||
Preferred shares (3)(10)(18) | — | 1/13/2015 | — | 6,214,411 | 5,557 | 5,641 | |||||||||||||||||
Ordinary shares (2)(10) | — | 1/13/2015 | — | 2,096,477 | 1,925 | 6,787 | |||||||||||||||||
Ordinary shares (3)(10) | — | 1/13/2015 | — | 1,993,749 | 531 | 6,454 | |||||||||||||||||
39,500 | 50,675 | 4.91 | % | ||||||||||||||||||||
NM GLCR LLC | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 2/1/2018 | — | — | 14,750 | 14,750 | 1.43 | % | ||||||||||||||
NM CLFX LP | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 10/6/2017 | — | — | 12,538 | 12,538 | 1.21 | % | ||||||||||||||
NM KRLN LLC | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 11/15/2016 | — | — | 7,510 | 8,328 | 0.80 | % | ||||||||||||||
NM DRVT LLC | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 11/18/2016 | — | — | 5,152 | 5,446 | 0.53 | % | ||||||||||||||
NM APP US LLC | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 9/13/2016 | — | — | 5,080 | 5,206 | 0.50 | % | ||||||||||||||
NM JRA LLC | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 8/12/2016 | — | — | 2,043 | 2,215 | 0.21 | % | ||||||||||||||
Edmentum Ultimate Holdings, LLC (16) | |||||||||||||||||||||||
Education | Ordinary shares (3)(10) | — | 6/9/2015 | — | 123,968 | 11 | 84 | ||||||||||||||||
Ordinary shares (2)(10) | — | 6/9/2015 | — | 107,143 | 9 | 72 | |||||||||||||||||
20 | 156 | 0.02 | % | ||||||||||||||||||||
Total Shares - United States | $ | 165,993 | $ | 178,714 | 17.30 | % | |||||||||||||||||
Total Shares | $ | 173,338 | $ | 186,948 | 18.10 | % | |||||||||||||||||
Warrants - United States | |||||||||||||||||||||||
Edmentum Ultimate Holdings, LLC (16) | |||||||||||||||||||||||
Education | Warrants (3)(10) | — | 2/23/2018 | 5/5/2026 | 1,141,846 | $ | 769 | $ | 769 | 0.07 | % | ||||||||||||
UniTek Global Services, Inc. | |||||||||||||||||||||||
Business Services | Warrants (3)(10) | — | 6/30/2017 | 12/31/2018 | 526,925 | — | — | — | % | ||||||||||||||
Total Warrants - United States | $ | 769 | $ | 769 | 0.07 | % | |||||||||||||||||
Total Funded Investments | $ | 229,862 | $ | 239,147 | 23.15 | % | |||||||||||||||||
Unfunded Debt Investments - United States | |||||||||||||||||||||||
UniTek Global Services, Inc. | |||||||||||||||||||||||
Business Services | First lien (3)(10)(11) - Undrawn | — | 1/13/2015 | 1/13/2019 | $ | 2,048 | $ | — | $ | — | |||||||||||||
First lien (3)(10)(11) - Undrawn | — | 1/13/2015 | 1/13/2019 | 758 | — | — | |||||||||||||||||
2,806 | — | — | — | % |
Portfolio Company, Location and Industry (1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity / Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Edmentum Ultimate Holdings, LLC (16) | |||||||||||||||||||||||
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.) | |||||||||||||||||||||||
Education | Second lien (3)(10)(11) - Undrawn | — | 6/9/2015 | 6/9/2020 | $ | 2,568 | $ | — | $ | — | — | % | |||||||||||
Total Unfunded Debt Investments - United States | $ | 5,374 | $ | — | $ | — | — | % | |||||||||||||||
Total Controlled Investments | $ | 229,862 | $ | 239,147 | 23.15 | % | |||||||||||||||||
Total Investments | $ | 1,945,658 | $ | 1,977,923 | 191.47 | % |
(1) | New Mountain Finance Corporation (the “Company”) generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. |
(2) | Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company as Collateral Manager, New Mountain Finance Holdings, L.L.C. (“NMF Holdings”) as the Borrower, Wells Fargo Securities, LLC as the Administrative Agent, and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian. See Note 7. Borrowings, for details. |
(3) | Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Stifel Bank & Trust as Lenders. See Note 7. Borrowings, for details. |
(4) | Investment is held in New Mountain Finance SBIC, L.P. |
(5) | Investment is held in New Mountain Finance SBIC II, L.P. |
(6) | Investment is held in NMF Ancora Holdings, Inc. |
(7) | Investment is held in NMF QID NGL Holdings, Inc. |
(8) | Investment is held in New Mountain Net Lease Corporation. |
(9) | All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of March 31, 2018. |
(10) | The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details. |
(11) | Par Value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws. |
(12) | The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds a tranche A first lien term loan and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation. |
(13) | The Company holds investments in three related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC), class A preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC. |
(14) | The Company holds investments in QC McKissock Investment, LLC and one related entity of QC McKissock Investment, LLC. The Company holds a first lien term loan in QC McKissock Investment, LLC (which at closing represented 71.1% of the ownership in the Series A common units of McKissock Investment Holdings, LLC) and holds a first lien term loan and a delayed draw term loan in McKissock, LLC, a wholly-owned subsidiary of McKissock Investment Holdings, LLC. |
(15) | The Company holds investments in TWDiamondback Holdings Corp. and one related entity of TWDiamondback Holdings Corp. The Company holds preferred equity in TWDiamondback Holdings Corp. and holds a first lien last out term loan and a delayed draw term loan in Diamondback Drugs of Delaware LLC, a wholly-owned subsidiary of TWDiamondback Holdings Corp. |
(16) | The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes and ordinary equity in Edmentum Ultimate Holdings, LLC and holds a second lien revolver in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC. |
(17) | The Company holds preferred equity in Permian Holdco 1, Inc. that is entitled to receive cumulative preferential dividends at a rate of 12.0% per annum payable in additional shares. |
(18) | The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares. |
(19) | The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares. |
(20) | The Company holds equity investments in TW-NHME Holdings Corp., and holds a second lien term loan investment in National HME, Inc., a wholly-owned subsidiary of TW-NHME Holdings Corp. |
(21) | The Company holds convertible preferred equity in HI Technology Corp that is accruing dividends at a rate of 15.0% per annum. |
(22) | The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares. |
(23) | The Company holds preferred equity in Avatar Topco, Inc., and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum. |
(24) | Investment is on non-accrual status. See Note 3. Investments, for details. |
(25) | Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of March 31, 2018 and December 31, 2017, along with transactions during the three months ended March 31, 2018 in which the issuer was a non-controlled/affiliated investment, is as follows: |
Portfolio Company | Fair Value at December 31, 2017 | Gross Additions (A) | Gross Redemptions (B) | Net Realized Gains (Losses) | Net Change In Unrealized Appreciation (Depreciation) | Fair Value at March 31, 2018 | Interest Income | Dividend Income | Other Income | |||||||||||||||||||||||||||
Edmentum Ultimate Holdings, LLC/Edmentum Inc. | $ | 24,858 | $ | — | $ | (24,858 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
HI Technology Corp. | 105,155 | — | — | — | 2,295 | 107,450 | — | 3,750 | — | |||||||||||||||||||||||||||
NMFC Senior Loan Program I LLC | 23,000 | — | — | — | — | 23,000 | — | 845 | 295 | |||||||||||||||||||||||||||
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. | 12,733 | 702 | — | — | (612 | ) | 12,824 | 102 | 259 | 7 | ||||||||||||||||||||||||||
Sierra Hamilton Holdings Corporation | 12,330 | — | — | — | 126 | 12,456 | — | — | — | |||||||||||||||||||||||||||
Total Non-Controlled/Affiliated Investments | $ | 178,076 | $ | 702 | $ | (24,858 | ) | $ | — | $ | 1,809 | $ | 155,730 | $ | 102 | $ | 4,854 | $ | 302 |
(A) | Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind ("PIK") interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category. |
(B) | Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category. |
(26) | Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote 25.0% or more of the outstanding voting securities of the investment. Fair value as of March 31, 2018 and December 31, 2017, along with transactions during the three months ended March 31, 2018 in which the issuer was a controlled investment, is as follows: |
Portfolio Company | Fair Value at December 31, 2017 | Gross Additions (A) | Gross Redemptions (B) | Net Realized Gains (Losses) | Net Change In Unrealized Appreciation (Depreciation) | Fair Value at March 31, 2018 | Interest Income | Dividend Income | Other Income | |||||||||||||||||||||||||||
Edmentum Ultimate Holdings, LLC/Edmentum Inc. | $ | — | $ | 37,873 | $ | — | $ | — | $ | (486 | ) | $ | 37,387 | $ | 779 | $ | — | $ | 385 | |||||||||||||||||
NM APP Canada Corp. | 7,962 | — | — | — | 272 | 8,234 | — | 184 | — | |||||||||||||||||||||||||||
NM APP US LLC | 5,138 | — | — | — | 68 | 5,206 | — | 130 | — | |||||||||||||||||||||||||||
NM CLFX LP | 12,538 | — | — | — | — | 12,538 | 365 | — | ||||||||||||||||||||||||||||
NM DRVT LLC | 5,385 | — | — | — | 61 | 5,446 | — | 120 | — | |||||||||||||||||||||||||||
NM JRA LLC | 2,191 | — | — | — | 24 | 2,215 | — | 50 | — | |||||||||||||||||||||||||||
NM GLCR LLC | — | 14,750 | — | — | — | 14,750 | 425 | — | ||||||||||||||||||||||||||||
NM KRLN LLC | 8,195 | — | — | — | 133 | 8,328 | — | 345 | — | |||||||||||||||||||||||||||
NMFC Senior Loan Program II LLC | 79,400 | — | — | — | — | 79,400 | — | 2,620 | — | |||||||||||||||||||||||||||
UniTek Global Services, Inc. | 64,593 | 1,578 | — | — | (528 | ) | 65,643 | 422 | 1,454 | 238 | ||||||||||||||||||||||||||
Total Controlled Investments | $ | 185,402 | $ | 54,201 | $ | — | $ | — | $ | (456 | ) | $ | 239,147 | $ | 1,201 | $ | 5,693 | $ | 623 |
(A) | Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category. |
(B) | Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category. |
* | All or a portion of interest contains PIK interest. |
** | Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of March 31, 2018, 10.2% of the Company’s total investments were non-qualifying assets. |
March 31, 2018 | |||
Investment Type | Percent of Total Investments at Fair Value | ||
First lien | 37.31 | % | |
Second lien | 39.16 | % | |
Subordinated | 3.43 | % | |
Equity and other | 20.10 | % | |
Total investments | 100.00 | % |
March 31, 2018 | |||
Industry Type | Percent of Total Investments at Fair Value | ||
Business Services | 32.87 | % | |
Software | 14.89 | % | |
Healthcare Services | 13.36 | % | |
Education | 9.41 | % | |
Distribution & Logistics | 5.94 | % | |
Investment Fund | 5.18 | % | |
Consumer Services | 4.35 | % | |
Federal Services | 3.91 | % | |
Energy | 3.74 | % | |
Net Lease | 2.87 | % | |
Healthcare Information Technology | 1.72 | % | |
Business Products | 1.03 | % | |
Packaging | 0.73 | % | |
Total investments | 100.00 | % |
March 31, 2018 | |||
Interest Rate Type | Percent of Total Investments at Fair Value | ||
Floating rates | 87.74 | % | |
Fixed rates | 12.26 | % | |
Total investments | 100.00 | % |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Non-Controlled/Non-Affiliated Investments | |||||||||||||||||||||||
Funded Debt Investments - United Kingdom | |||||||||||||||||||||||
Air Newco LLC** | |||||||||||||||||||||||
Software | Second lien (3) | 10.94% (L + 9.50%/Q) | 1/30/2015 | 1/31/2023 | $ | 40,000 | $ | 39,033 | $ | 39,000 | 3.77 | % | |||||||||||
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.** | |||||||||||||||||||||||
Consumer Services | Second lien (3) | 8.88% (L + 7.50%/Q) | 9/25/2017 | 10/3/2025 | 40,353 | 40,056 | 40,656 | 3.93 | % | ||||||||||||||
Total Funded Debt Investments - United Kingdom | $ | 80,353 | $ | 79,089 | $ | 79,656 | 7.70 | % | |||||||||||||||
Funded Debt Investments - United States | |||||||||||||||||||||||
AmWINS Group, Inc. | |||||||||||||||||||||||
Business Services | Second lien (3) | 8.32% (L + 6.75%/M) | 1/19/2017 | 1/25/2025 | $ | 57,000 | $ | 56,804 | $ | 57,606 | 5.57 | % | |||||||||||
Alegeus Technologies, LLC | |||||||||||||||||||||||
Healthcare Services | Second lien (3)(10) | 10.19% (L + 8.50%/Q) | 4/28/2017 | 10/30/2023 | 23,500 | 23,500 | 23,500 | ||||||||||||||||
Second lien (4)(10) | 10.19% (L + 8.50%/Q) | 4/28/2017 | 10/30/2023 | 22,500 | 22,500 | 22,500 | |||||||||||||||||
46,000 | 46,000 | 46,000 | 4.44 | % | |||||||||||||||||||
PetVet Care Centers LLC | |||||||||||||||||||||||
Consumer Services | First lien (2)(10) | 7.69% (L + 6.00%/Q) | 6/8/2017 | 6/8/2023 | 34,527 | 34,409 | 34,872 | ||||||||||||||||
First lien (3)(10)(11) - Drawn | 7.55% (L + 6.00%/Q) | 6/8/2017 | 6/8/2023 | 8,646 | 8,616 | 8,733 | |||||||||||||||||
First lien (3)(10)(11) - Drawn | 9.50% (P + 5.00%/Q) | 6/8/2017 | 6/8/2023 | 2,200 | 2,192 | 2,200 | |||||||||||||||||
45,373 | 45,217 | 45,805 | 4.43 | % | |||||||||||||||||||
Integro Parent Inc. | |||||||||||||||||||||||
Business Services | First lien (2) | 7.16% (L + 5.75%/Q) | 10/9/2015 | 10/31/2022 | 34,873 | 34,601 | 34,786 | ||||||||||||||||
Second lien (3) | 10.63% (L + 9.25%/Q) | 10/9/2015 | 10/30/2023 | 10,000 | 9,920 | 9,800 | |||||||||||||||||
44,873 | 44,521 | 44,586 | 4.31 | % | |||||||||||||||||||
Severin Acquisition, LLC | |||||||||||||||||||||||
Software | Second lien (4)(10) | 10.32% (L + 8.75%/M) | 7/31/2015 | 7/29/2022 | 15,000 | 14,891 | 15,000 | ||||||||||||||||
Second lien (3)(10) | 10.32% (L + 8.75%/M) | 2/1/2017 | 7/29/2022 | 14,518 | 14,361 | 14,518 | |||||||||||||||||
Second lien (4)(10) | 10.32% (L + 8.75%/M) | 11/5/2015 | 7/29/2022 | 4,154 | 4,123 | 4,154 | |||||||||||||||||
Second lien (4)(10) | 10.82% (L + 9.25%/M) | 2/1/2016 | 7/29/2022 | 3,273 | 3,248 | 3,273 | |||||||||||||||||
Second lien (3)(10) | 10.57% (L + 9.00%/M) | 10/14/2016 | 7/29/2022 | 2,361 | 2,341 | 2,361 | |||||||||||||||||
Second lien (3)(10) | 10.82% (L + 9.25%/M) | 8/8/2016 | 7/29/2022 | 1,825 | 1,810 | 1,825 | |||||||||||||||||
Second lien (4)(10) | 10.82% (L + 9.25%/M) | 8/8/2016 | 7/29/2022 | 300 | 298 | 300 | |||||||||||||||||
41,431 | 41,072 | 41,431 | 4.00 | % | |||||||||||||||||||
Salient CRGT Inc. | |||||||||||||||||||||||
Federal Services | First lien (2) | 7.32% (L + 5.75%/M) | 1/6/2015 | 2/28/2022 | 40,894 | 40,421 | 41,251 | 3.99 | % | ||||||||||||||
Tenawa Resource Holdings LLC (13) | |||||||||||||||||||||||
Tenawa Resource Management LLC | |||||||||||||||||||||||
Energy | First lien (3)(10) | 10.50% (Base + 8.00%/Q) | 5/12/2014 | 10/30/2024 | 39,900 | 39,835 | 39,900 | 3.86 | % |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
VetCor Professional Practices LLC | |||||||||||||||||||||||
Consumer Services | First lien (4) | 7.69% (L + 6.00%/Q) | 5/15/2015 | 4/20/2021 | $ | 19,111 | $ | 18,996 | $ | 19,134 | |||||||||||||
First lien (2) | 7.69% (L + 6.00%/Q) | 5/15/2015 | 4/20/2021 | 7,714 | 7,603 | 7,724 | |||||||||||||||||
First lien (3)(11) - Drawn | 7.69% (L + 6.00%/Q) | 2/24/2017 | 4/20/2021 | 6,005 | 5,891 | 6,013 | |||||||||||||||||
First lien (4) | 7.69% (L + 6.00%/Q) | 5/15/2015 | 4/20/2021 | 2,650 | 2,632 | 2,654 | |||||||||||||||||
First lien (2) | 7.69% (L + 6.00%/Q) | 6/24/2016 | 4/20/2021 | 1,632 | 1,606 | 1,634 | |||||||||||||||||
First lien (4) | 7.69% (L + 6.00%/Q) | 3/31/2016 | 4/20/2021 | 495 | 487 | 496 | |||||||||||||||||
First lien (3)(11) - Drawn | 7.69% (L + 6.00%/Q) | 5/15/2015 | 4/20/2021 | 1,426 | 1,412 | 1,428 | |||||||||||||||||
39,033 | 38,627 | 39,083 | 3.78 | % | |||||||||||||||||||
Frontline Technologies Group Holdings, LLC | |||||||||||||||||||||||
Education | First lien (2)(10) | 8.09% (L + 6.50%/Q) | 9/18/2017 | 9/18/2023 | 16,750 | 16,629 | 16,625 | ||||||||||||||||
First lien (4)(10) | 8.09% (L + 6.50%/Q) | 9/18/2017 | 9/18/2023 | 22,613 | 22,450 | 22,444 | |||||||||||||||||
39,363 | 39,079 | 39,069 | 3.77 | % | |||||||||||||||||||
Kronos Incorporated | |||||||||||||||||||||||
Software | Second lien (2) | 9.63% (L + 8.25%/Q) | 10/26/2012 | 11/1/2024 | 36,000 | 35,508 | 37,449 | 3.62 | % | ||||||||||||||
Valet Waste Holdings, Inc. | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 8.57% (L + 7.00%/M) | 9/24/2015 | 9/24/2021 | 29,325 | 29,078 | 29,325 | ||||||||||||||||
First lien (2)(10) | 8.57% (L + 7.00%/M) | 7/27/2017 | 9/24/2021 | 3,731 | 3,697 | 3,731 | |||||||||||||||||
33,056 | 32,775 | 33,056 | 3.19 | % | |||||||||||||||||||
Evo Payments International, LLC | |||||||||||||||||||||||
Business Services | Second lien (2) | 10.57% (L + 9.00%/M) | 12/8/2016 | 12/23/2024 | 25,000 | 24,824 | 25,250 | ||||||||||||||||
Second lien (3) | 10.57% (L + 9.00%/M) | 12/8/2016 | 12/23/2024 | 5,000 | 5,052 | 5,050 | |||||||||||||||||
30,000 | 29,876 | 30,300 | 2.93 | % | |||||||||||||||||||
Wirepath LLC | |||||||||||||||||||||||
Distribution & Logistics | First lien (2) | 6.87% (L + 5.25%/Q) | 7/31/2017 | 8/5/2024 | 27,731 | 27,598 | 28,112 | 2.72 | % | ||||||||||||||
Ansira Holdings, Inc. | |||||||||||||||||||||||
Business Services | First lien (2) | 8.19% (L + 6.50%/Q) | 12/19/2016 | 12/20/2022 | 25,920 | 25,809 | 25,855 | ||||||||||||||||
First lien (3)(11) - Drawn | 8.19% (L + 6.50%/Q) | 12/19/2016 | 12/20/2022 | 2,107 | 2,097 | 2,102 | |||||||||||||||||
28,027 | 27,906 | 27,957 | 2.70 | % | |||||||||||||||||||
TW-NHME Holdings Corp. (20) | |||||||||||||||||||||||
National HME, Inc. | |||||||||||||||||||||||
Healthcare Services | Second lien (4)(10) | 10.95% (L + 9.25%/Q) | 7/14/2015 | 7/14/2022 | 21,500 | 21,301 | 21,646 | ||||||||||||||||
Second lien (3)(10) | 10.95% (L + 9.25%/Q) | 7/14/2015 | 7/14/2022 | 5,800 | 5,737 | 5,839 | |||||||||||||||||
27,300 | 27,038 | 27,485 | 2.66 | % | |||||||||||||||||||
Navicure, Inc. | |||||||||||||||||||||||
Healthcare Services | Second lien (3) | 8.86% (L + 7.50%/M) | 10/23/2017 | 10/31/2025 | 26,952 | 26,819 | 27,154 | 2.62 | % | ||||||||||||||
Trader Interactive, LLC | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 7.50% (L + 6.00%/M) | 6/15/2017 | 6/17/2024 | 27,190 | 26,999 | 26,986 | 2.61 | % | ||||||||||||||
Marketo, Inc. | |||||||||||||||||||||||
Software | First lien (3)(10) | 11.19% (L + 9.50%/Q) | 8/16/2016 | 8/16/2021 | 26,820 | 26,509 | 26,820 | 2.59 | % | ||||||||||||||
Keystone Acquisition Corp. | |||||||||||||||||||||||
Healthcare Services | First lien (2) | 6.94% (L + 5.25%/Q) | 5/10/2017 | 5/1/2024 | 19,950 | 19,764 | 20,087 | ||||||||||||||||
Second lien (3) | 10.94% (L + 9.25%/Q) | 5/10/2017 | 5/1/2025 | 4,500 | 4,457 | 4,511 | |||||||||||||||||
24,450 | 24,221 | 24,598 | 2.38 | % |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
iPipeline, Inc. (Internet Pipeline, Inc.) | |||||||||||||||||||||||
Software | First lien (4)(10) | 8.82% (L + 7.25%/M) | 8/4/2015 | 8/4/2022 | $ | 17,589 | $ | 17,464 | $ | 17,589 | |||||||||||||
First lien (4)(10) | 7.74% (L + 6.25%/M) | 6/16/2017 | 8/4/2022 | 4,577 | 4,556 | 4,554 | |||||||||||||||||
First lien (2)(10) | 7.74% (L + 6.25%/M) | 9/25/2017 | 8/4/2022 | 1,161 | 1,155 | 1,155 | |||||||||||||||||
First lien (4)(10) | 7.74% (L + 6.25%/M) | 9/25/2017 | 8/4/2022 | 511 | 508 | 508 | |||||||||||||||||
23,838 | 23,683 | 23,806 | 2.30 | % | |||||||||||||||||||
AAC Holding Corp. | |||||||||||||||||||||||
Education | First lien (2)(10) | 9.62% (L + 8.25%/M) | 9/30/2015 | 9/30/2020 | 23,161 | 22,953 | 23,161 | 2.24 | % | ||||||||||||||
BackOffice Associates Holdings, LLC | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 8.06% (L + 6.50%/M) | 8/25/2017 | 8/25/2023 | 22,869 | 22,679 | 22,669 | 2.19 | % | ||||||||||||||
TWDiamondback Holdings Corp. (15) | |||||||||||||||||||||||
Diamondback Drugs of Delaware, L.L.C. (TWDiamondback II Holdings LLC) | |||||||||||||||||||||||
Distribution & Logistics | First lien (4)(10) | 10.49% (L + 8.75%/Q) | 11/19/2014 | 11/19/2019 | 19,895 | 19,895 | 19,895 | ||||||||||||||||
First lien (3)(10) | 10.44% (L + 8.75%/Q) | 11/19/2014 | 11/19/2019 | 2,158 | 2,158 | 2,158 | |||||||||||||||||
First lien (4)(10) | 10.44% (L + 8.75%/Q) | 11/19/2014 | 11/19/2019 | 605 | 605 | 605 | |||||||||||||||||
22,658 | 22,658 | 22,658 | 2.19 | % | |||||||||||||||||||
EN Engineering, LLC | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 7.69% (L + 6.00%/Q) | 7/30/2015 | 6/30/2021 | 20,893 | 20,760 | 20,893 | ||||||||||||||||
First lien (2)(10) | 7.69% (L + 6.00%/Q) | 7/30/2015 | 6/30/2021 | 1,208 | 1,200 | 1,208 | |||||||||||||||||
22,101 | 21,960 | 22,101 | 2.14 | % | |||||||||||||||||||
Avatar Topco, Inc (23) | |||||||||||||||||||||||
EAB Global, Inc. | |||||||||||||||||||||||
Education | Second lien (3) | 8.99% (L + 7.50%/M) | 11/17/2017 | 11/17/2025 | 21,450 | 21,132 | 21,236 | 2.05 | % | ||||||||||||||
DigiCert Holdings, Inc. | |||||||||||||||||||||||
Business Services | Second lien (3) | 9.38% (L + 8.00%/Q) | 9/20/2017 | 10/31/2025 | 20,176 | 20,077 | 20,347 | 1.97 | % | ||||||||||||||
DiversiTech Holdings, Inc. | |||||||||||||||||||||||
Distribution & Logistics | Second lien (3) | 9.20% (L + 7.50%/Q) | 5/18/2017 | 6/2/2025 | 19,500 | 19,315 | 19,744 | 1.91 | % | ||||||||||||||
ABILITY Network Inc. | |||||||||||||||||||||||
Healthcare Information Technology | Second lien (3) | 9.21% (L + 7.75%/M) | 12/11/2017 | 12/12/2025 | 18,851 | 18,839 | 18,945 | 1.83 | % | ||||||||||||||
KeyPoint Government Solutions, Inc. | |||||||||||||||||||||||
Federal Services | First lien (2)(10) | 7.35% (L + 6.00%/Q) | 4/18/2017 | 4/18/2024 | 18,413 | 18,243 | 18,597 | 1.80 | % | ||||||||||||||
AgKnowledge Holdings Company, Inc. | |||||||||||||||||||||||
Business Services | Second lien (2)(10) | 9.82% (L + 8.25%/M) | 7/23/2014 | 7/23/2020 | 18,500 | 18,409 | 18,500 | 1.79 | % | ||||||||||||||
VF Holding Corp. | |||||||||||||||||||||||
Software | Second lien (3)(10) | 10.57% (L + 9.00%/M) | 7/7/2016 | 6/28/2024 | 17,086 | 17,396 | 17,598 | 1.70 | % | ||||||||||||||
DCA Investment Holding, LLC | |||||||||||||||||||||||
Healthcare Services | First lien (2)(10) | 6.94% (L + 5.25%/Q) | 7/2/2015 | 7/2/2021 | 17,453 | 17,344 | 17,453 | 1.69 | % | ||||||||||||||
OEConnection LLC | |||||||||||||||||||||||
Business Services | Second lien (3) | 9.69% (L + 8.00%/Q) | 11/22/2017 | 11/22/2025 | 16,841 | 16,548 | 16,841 | 1.63 | % | ||||||||||||||
TIBCO Software Inc. | |||||||||||||||||||||||
Software | Subordinated (3) | 11.38%/S | 11/24/2014 | 12/1/2021 | 15,000 | 14,714 | 16,378 | 1.58 | % | ||||||||||||||
American Tire Distributors, Inc. | |||||||||||||||||||||||
Distribution & Logistics | Subordinated (3) | 10.25%/S | 2/10/2015 | 3/1/2022 | 15,520 | 15,267 | 16,063 | 1.55 | % |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Hill International, Inc.** | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 7.32% (L + 5.75%/M) | 6/21/2017 | 6/21/2023 | $ | 15,721 | $ | 15,648 | $ | 15,642 | 1.51 | % | |||||||||||
Netsmart Inc. / Netsmart Technologies, Inc. | |||||||||||||||||||||||
Healthcare Information Technology | Second lien (2) | 10.98% (L + 9.50%/Q) | 4/18/2016 | 10/19/2023 | 15,000 | 14,686 | 15,075 | 1.46 | % | ||||||||||||||
Transcendia Holdings, Inc. | |||||||||||||||||||||||
Packaging | Second lien (3) | 9.57% (L + 8.00%/M) | 6/28/2017 | 5/30/2025 | 14,500 | 14,309 | 14,391 | 1.39 | % | ||||||||||||||
SW Holdings, LLC | |||||||||||||||||||||||
Business Services | Second lien (4)(10) | 10.44% (L + 8.75%/Q) | 6/30/2015 | 12/30/2021 | 14,265 | 14,167 | 14,331 | 1.38 | % | ||||||||||||||
Peraton Holding Corp. (fka MHVC Acquisition Corp.) | |||||||||||||||||||||||
Federal Services | First lien (2) | 6.95% (L + 5.25%/Q) | 4/25/2017 | 4/29/2024 | 14,030 | 13,987 | 14,135 | 1.37 | % | ||||||||||||||
Ministry Brands, LLC | |||||||||||||||||||||||
Software | First lien (3) | 6.38% (L + 5.00%/Q) | 12/7/2016 | 12/2/2022 | 2,993 | 2,980 | 2,993 | ||||||||||||||||
First lien (3)(10)(11) - Drawn | 6.57% (L + 5.00%/M) | 12/7/2016 | 12/2/2022 | 1,000 | 995 | 1,000 | |||||||||||||||||
Second lien (3)(10) | 10.63% (L + 9.25%/Q) | 12/7/2016 | 6/2/2023 | 7,840 | 7,788 | 7,840 | |||||||||||||||||
Second lien (3)(10) | 10.63% (L + 9.25%/Q) | 12/7/2016 | 6/2/2023 | 2,160 | 2,146 | 2,160 | |||||||||||||||||
13,993 | 13,909 | 13,993 | 1.35 | % | |||||||||||||||||||
nThrive, Inc. (fka Precyse Acquisition Corp.) | |||||||||||||||||||||||
Healthcare Services | Second lien (2)(10) | 11.32% (L + 9.75%/M) | 4/19/2016 | 4/20/2023 | 13,000 | 12,813 | 12,702 | 1.23 | % | ||||||||||||||
FR Arsenal Holdings II Corp. | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 8.81% (L + 7.25%/Q) | 9/29/2016 | 9/8/2022 | 12,356 | 12,252 | 12,373 | 1.19 | % | ||||||||||||||
Amerijet Holdings, Inc. | |||||||||||||||||||||||
Distribution & Logistics | First lien (4)(10) | 9.57% (L + 8.00%/M) | 7/15/2016 | 7/15/2021 | 10,403 | 10,344 | 10,458 | ||||||||||||||||
First lien (4)(10) | 9.57% (L + 8.00%/M) | 7/15/2016 | 7/15/2021 | 1,734 | 1,724 | 1,743 | |||||||||||||||||
12,137 | 12,068 | 12,201 | 1.18 | % | |||||||||||||||||||
SSH Group Holdings, Inc. | |||||||||||||||||||||||
Education | First lien (2)(10) | 6.69% (L + 5.00%/Q) | 10/13/2017 | 10/2/2024 | 8,407 | 8,366 | 8,365 | ||||||||||||||||
Second lien (3)(10) | 10.69% (L + 9.00%/Q) | 10/13/2017 | 10/2/2025 | 3,363 | 3,330 | 3,329 | |||||||||||||||||
11,770 | 11,696 | 11,694 | 1.13 | % | |||||||||||||||||||
ProQuest LLC | |||||||||||||||||||||||
Business Services | Second lien (3) | 10.55% (L + 9.00%/M) | 12/14/2015 | 12/15/2022 | 11,620 | 11,440 | 11,620 | 1.12 | % | ||||||||||||||
Xactly Corporation | |||||||||||||||||||||||
Software | First lien (4)(10) | 8.82% (L + 7.25%/M) | 7/31/2017 | 7/29/2022 | 11,600 | 11,492 | 11,484 | 1.11 | % | ||||||||||||||
Zywave, Inc. | |||||||||||||||||||||||
Software | Second lien (4)(10) | 10.42% (L + 9.00%/Q) | 11/22/2016 | 11/17/2023 | 11,000 | 10,927 | 11,011 | ||||||||||||||||
First lien (3)(10)(11) - Drawn | 8.50% (P + 4.00%/Q) | 11/22/2016 | 11/17/2022 | 200 | 199 | 200 | |||||||||||||||||
First lien (3)(10)(11) - Drawn | 6.57% (L + 5.00%/Q) | 11/22/2016 | 11/17/2022 | 250 | 248 | 250 | |||||||||||||||||
11,450 | 11,374 | 11,461 | 1.11 | % | |||||||||||||||||||
QC McKissock Investment, LLC (14) | |||||||||||||||||||||||
McKissock, LLC | |||||||||||||||||||||||
Education | First lien (2)(10) | 7.94% (L + 6.25%/Q) | 8/6/2014 | 8/5/2021 | 6,415 | 6,386 | 6,415 | ||||||||||||||||
First lien (2)(10) | 7.94% (L + 6.25%/Q) | 8/6/2014 | 8/5/2021 | 3,058 | 3,046 | 3,058 | |||||||||||||||||
First lien (2)(10) | 7.94% (L + 6.25%/Q) | 8/6/2014 | 8/5/2021 | 987 | 983 | 987 | |||||||||||||||||
10,460 | 10,415 | 10,460 | 1.01 | % |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Masergy Holdings, Inc. | |||||||||||||||||||||||
Business Services | Second lien (2) | 10.19% (L + 8.50%/Q) | 12/14/2016 | 12/16/2024 | $ | 10,000 | $ | 9,943 | $ | 10,144 | 0.98 | % | |||||||||||
Idera, Inc. | |||||||||||||||||||||||
Software | Second lien (4) | 10.57% (L + 9.00%/M) | 6/27/2017 | 6/27/2025 | 10,000 | 9,856 | 10,100 | 0.97 | % | ||||||||||||||
Quest Software US Holdings Inc. | |||||||||||||||||||||||
Software | First lien (2) | 6.92% (L + 5.50%/Q) | 10/31/2016 | 10/31/2022 | 9,899 | 9,775 | 10,071 | 0.97 | % | ||||||||||||||
PowerPlan Holdings, Inc. | |||||||||||||||||||||||
Software | Second lien (2)(10) | 10.57% (L + 9.00%/M) | 2/23/2015 | 2/23/2023 | 10,000 | 9,927 | 10,000 | 0.97 | % | ||||||||||||||
WD Wolverine Holdings, LLC | |||||||||||||||||||||||
Healthcare Services | First lien (2) | 7.07% (L + 5.50%/M) | 2/22/2017 | 8/16/2022 | 9,813 | 9,534 | 9,512 | 0.92 | % | ||||||||||||||
Pelican Products, Inc. | |||||||||||||||||||||||
Business Products | Second lien (2) | 9.94% (L + 8.25%/Q) | 4/9/2014 | 4/9/2021 | 9,500 | 9,533 | 9,500 | 0.92 | % | ||||||||||||||
J.D. Power (fka J.D. Power and Associates) | |||||||||||||||||||||||
Business Services | Second lien (3) | 10.19% (L + 8.50%/Q) | 6/9/2016 | 9/7/2024 | 9,333 | 9,230 | 9,473 | 0.91 | % | ||||||||||||||
Harley Marine Services, Inc. | |||||||||||||||||||||||
Distribution & Logistics | Second lien (2) | 10.63% (L + 9.25%/Q) | 12/18/2013 | 12/20/2019 | 9,000 | 8,929 | 8,955 | 0.86 | % | ||||||||||||||
JAMF Holdings, Inc. | |||||||||||||||||||||||
Software | First lien (3)(10) | 9.41% (L + 8.00%/Q) | 11/13/2017 | 11/11/2022 | 8,757 | 8,672 | 8,670 | 0.84 | % | ||||||||||||||
Autodata, Inc. (Autodata Solutions, Inc.) | |||||||||||||||||||||||
Business Services | Second lien (3) | 8.82% (L + 7.25%/Q) | 12/12/2017 | 12/12/2025 | 7,406 | 7,387 | 7,387 | 0.71 | % | ||||||||||||||
MH Sub I, LLC (Micro Holding Corp.) | |||||||||||||||||||||||
Software | Second lien (3) | 9.09% (L + 7.50%/Q) | 8/16/2017 | 9/15/2025 | 7,000 | 6,932 | 7,048 | 0.68 | % | ||||||||||||||
First American Payment Systems, L.P. | |||||||||||||||||||||||
Business Services | First lien (2) | 7.14% (L + 5.75%/M) | 1/3/2017 | 1/5/2024 | 6,844 | 6,783 | 6,880 | 0.66 | % | ||||||||||||||
Solera LLC / Solera Finance, Inc. | |||||||||||||||||||||||
Software | Subordinated (3) | 10.50%/S | 2/29/2016 | 3/1/2024 | 5,000 | 4,791 | 5,650 | 0.55 | % | ||||||||||||||
Pathway Partners Vet Management Company LLC | |||||||||||||||||||||||
Consumer Services | Second lien (4) | 9.57% (L + 8.00%/M) | 10/4/2017 | 10/10/2025 | 5,556 | 5,527 | 5,527 | 0.53 | % | ||||||||||||||
Applied Systems, Inc. | |||||||||||||||||||||||
Software | Second lien (3) | 8.69% (L + 7.00%/Q) | 9/14/2017 | 9/19/2025 | 4,923 | 4,923 | 5,106 | 0.49 | % | ||||||||||||||
ADG, LLC | |||||||||||||||||||||||
Healthcare Services | Second lien (3)(10) | 10.57% (L + 9.00%/M) | 10/3/2016 | 3/28/2024 | 5,000 | 4,934 | 5,038 | 0.49 | % | ||||||||||||||
Vencore, Inc. (fka The SI Organization Inc.) | |||||||||||||||||||||||
Federal Services | Second lien (3) | 10.44% (L + 8.75%/Q) | 6/14/2016 | 5/23/2020 | 4,400 | 4,350 | 4,450 | 0.43 | % | ||||||||||||||
Affinity Dental Management, Inc. | |||||||||||||||||||||||
Healthcare Services | First lien (2)(10) | 7.59% (L + 6.00%/Q) | 9/15/2017 | 9/15/2023 | 4,344 | 4,302 | 4,301 | 0.41 | % | ||||||||||||||
York Risk Services Holding Corp. | |||||||||||||||||||||||
Business Services | Subordinated (3) | 8.50%/S | 9/17/2014 | 10/1/2022 | 3,000 | 3,000 | 2,940 | 0.28 | % | ||||||||||||||
Ensemble S Merger Sub, Inc. | |||||||||||||||||||||||
Software | Subordinated (3) | 9.00%/S | 9/21/2015 | 9/30/2023 | 2,000 | 1,946 | 2,125 | 0.20 | % |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Education Management Corporation (12) | |||||||||||||||||||||||
Education Management II LLC | |||||||||||||||||||||||
Education | First lien (2) | 5.85% (L + 4.50%/Q) | 1/5/2015 | 7/2/2020 | $ | 211 | $ | 205 | $ | 82 | |||||||||||||
First lien (3) | 5.85% (L + 4.50%/Q) | 1/5/2015 | 7/2/2020 | 119 | 116 | 46 | |||||||||||||||||
First lien (2) | 8.85% (L + 7.50%/Q) | 1/5/2015 | 7/2/2020 | 475 | 437 | 10 | |||||||||||||||||
First lien (3) | 8.85% (L + 7.50%/Q) | 1/5/2015 | 7/2/2020 | 268 | 247 | 6 | |||||||||||||||||
1,073 | 1,005 | 144 | 0.01 | % | |||||||||||||||||||
Total Funded Debt Investments - United States | $ | 1,319,560 | $ | 1,309,577 | $ | 1,325,328 | 128.05 | % | |||||||||||||||
Total Funded Debt Investments | $ | 1,399,913 | $ | 1,388,666 | $ | 1,404,984 | 135.75 | % | |||||||||||||||
Equity - Hong Kong | |||||||||||||||||||||||
Bach Special Limited (Bach Preference Limited)** | |||||||||||||||||||||||
Education | Preferred shares (3)(10)(22) | — | 9/1/2017 | — | 58,868 | $ | 5,807 | $ | 5,806 | 0.56 | % | ||||||||||||
Total Shares - Hong Kong | $ | 5,807 | $ | 5,806 | 0.56 | % | |||||||||||||||||
Equity - United States | |||||||||||||||||||||||
Avatar Topco, Inc. (23) | |||||||||||||||||||||||
Education | Preferred shares (3)(10)(23) | — | 11/17/2017 | — | 35,750 | $ | 35,220 | $ | 35,204 | 3.40 | % | ||||||||||||
Tenawa Resource Holdings LLC (13) | |||||||||||||||||||||||
QID NGL LLC | |||||||||||||||||||||||
Energy | Ordinary shares (7)(10) | — | 5/12/2014 | — | 5,290,997 | 5,291 | 8,154 | ||||||||||||||||
Preferred shares (7)(10) | — | 10/30/2017 | — | 620,706 | 621 | 1,007 | |||||||||||||||||
5,912 | 9,161 | 0.88 | % | ||||||||||||||||||||
TWDiamondback Holdings Corp. (15) | |||||||||||||||||||||||
Distribution & Logistics | Preferred shares (4)(10) | — | 11/19/2014 | — | 200 | 2,000 | 4,508 | 0.44 | % | ||||||||||||||
TW-NHME Holdings Corp. (20) | |||||||||||||||||||||||
Healthcare Services | Preferred shares (4)(10) | — | 7/14/2015 | — | 100 | 1,000 | 944 | ||||||||||||||||
Preferred shares (4)(10) | — | 1/5/2016 | — | 16 | 158 | 149 | |||||||||||||||||
Preferred shares (4)(10) | — | 6/30/2016 | — | 6 | 68 | 58 | |||||||||||||||||
1,226 | 1,151 | 0.11 | % | ||||||||||||||||||||
Ancora Acquisition LLC | |||||||||||||||||||||||
Education | Preferred shares (6)(10) | — | 8/12/2013 | — | 372 | 83 | 393 | 0.04 | % | ||||||||||||||
Education Management Corporation (12) | |||||||||||||||||||||||
Education | Preferred shares (2) | — | 1/5/2015 | — | 3,331 | 200 | — | ||||||||||||||||
Preferred shares (3) | — | 1/5/2015 | — | 1,879 | 113 | — | |||||||||||||||||
Ordinary shares (2) | — | 1/5/2015 | — | 2,994,065 | 100 | 10 | |||||||||||||||||
Ordinary shares (3) | — | 1/5/2015 | — | 1,688,976 | 56 | 6 | |||||||||||||||||
469 | 16 | 0.00 | % | ||||||||||||||||||||
Total Shares - United States | $ | 44,910 | $ | 50,433 | 4.87 | % | |||||||||||||||||
Total Shares | $ | 50,717 | $ | 56,239 | 5.43 | % |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Warrants - United States | |||||||||||||||||||||||
ASP LCG Holdings, Inc. | |||||||||||||||||||||||
Education | Warrants (3)(10) | — | 5/5/2014 | 5/5/2026 | 622 | $ | 37 | $ | 1,089 | 0.11 | % | ||||||||||||
Ancora Acquisition LLC | |||||||||||||||||||||||
Education | Warrants (6)(10) | — | 8/12/2013 | 8/12/2020 | 20 | — | — | — | % | ||||||||||||||
YP Equity Investors, LLC | |||||||||||||||||||||||
Media | Warrants (5)(10) | — | 5/3/2012 | 5/8/2022 | 5 | — | — | — | % | ||||||||||||||
Total Warrants - United States | $ | 37 | $ | 1,089 | 0.11 | % | |||||||||||||||||
Total Funded Investments | $ | 1,439,420 | $ | 1,462,312 | 141.29 | % | |||||||||||||||||
Unfunded Debt Investments - United States | |||||||||||||||||||||||
PetVet Care Centers LLC | |||||||||||||||||||||||
Consumer Services | First lien (3)(10)(11) - Undrawn | — | 6/8/2017 | 6/8/2019 | $ | 4,439 | $ | (16 | ) | $ | 44 | 0.00 | % | ||||||||||
VetCor Professional Practices LLC | |||||||||||||||||||||||
Consumer Services | First lien (3)(11) - Undrawn | — | 5/15/2015 | 4/20/2021 | 1,274 | (13 | ) | 2 | |||||||||||||||
First lien (3)(11) - Undrawn | — | 12/29/2017 | 12/29/2019 | 8,552 | (75 | ) | 11 | ||||||||||||||||
9,826 | (88 | ) | 13 | 0.00 | % | ||||||||||||||||||
DCA Investment Holding, LLC | |||||||||||||||||||||||
Healthcare Services | First lien (3)(10)(11) - Undrawn | — | 7/2/2015 | 7/2/2021 | 2,100 | (21 | ) | — | |||||||||||||||
First lien (3)(10)(11) - Undrawn | — | 12/20/2017 | 12/20/2019 | 13,465 | (118 | ) | — | ||||||||||||||||
15,565 | (139 | ) | — | — | % | ||||||||||||||||||
iPipeline, Inc. (Internet Pipeline, Inc.) | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 8/4/2015 | 8/4/2021 | 1,000 | (10 | ) | — | — | % | |||||||||||||
Valet Waste Holdings, Inc. | |||||||||||||||||||||||
Business Services | First lien (3)(10)(11) - Undrawn | — | 9/24/2015 | 9/24/2021 | 3,750 | (47 | ) | — | — | % | |||||||||||||
Zywave, Inc. | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 11/22/2016 | 11/17/2022 | 1,550 | (12 | ) | — | — | % | |||||||||||||
Marketo, Inc. | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 8/16/2016 | 8/16/2021 | 1,788 | (27 | ) | — | — | % | |||||||||||||
Ansira Holdings, Inc. | |||||||||||||||||||||||
Business Services | First lien (3)(11) - Undrawn | — | 12/19/2016 | 12/20/2018 | 1,700 | (9 | ) | (4 | ) | (0.00 | )% | ||||||||||||
JAMF Holdings, Inc. | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 11/13/2017 | 11/11/2022 | 750 | (8 | ) | (8 | ) | (0.00 | )% | ||||||||||||
Xactly Corporation | |||||||||||||||||||||||
Software | First lien (3)(10)(11) - Undrawn | — | 7/31/2017 | 7/29/2022 | 992 | (10 | ) | (10 | ) | (0.00 | )% | ||||||||||||
Pathway Partners Vet Management Company LLC | |||||||||||||||||||||||
Consumer Services | Second lien (4)(11) - Undrawn | — | 10/4/2017 | 10/10/2019 | 2,444 | (12 | ) | (12 | ) | (0.00 | )% |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Trader Interactive, LLC | |||||||||||||||||||||||
Business Services | First lien (3)(10)(11) - Undrawn | — | 6/15/2017 | 6/15/2023 | $ | 1,673 | $ | (13 | ) | $ | (13 | ) | (0.00 | )% | |||||||||
BackOffice Associates Holdings, LLC | |||||||||||||||||||||||
Business Services | First lien (3)(10)(11) - Undrawn | — | 8/25/2017 | 8/24/2018 | 3,448 | (13 | ) | (13 | ) | ||||||||||||||
First lien (3)(10)(11) - Undrawn | — | 8/25/2017 | 8/25/2023 | 2,586 | (23 | ) | (23 | ) | |||||||||||||||
6,034 | (36 | ) | (36 | ) | (0.00 | )% | |||||||||||||||||
Affinity Dental Management, Inc. | |||||||||||||||||||||||
Healthcare Services | First lien (3)(10)(11) - Undrawn | — | 9/15/2017 | 3/15/2019 | 11,584 | (29 | ) | (29 | ) | ||||||||||||||
First lien (3)(10)(11) - Undrawn | — | 9/15/2017 | 3/15/2023 | 1,738 | (17 | ) | (17 | ) | |||||||||||||||
13,322 | (46 | ) | (46 | ) | (0.00 | )% | |||||||||||||||||
Frontline Technologies Group Holdings, LLC | |||||||||||||||||||||||
Education | First lien (3)(10)(11) - Undrawn | — | 9/18/2017 | 9/18/2019 | 7,738 | (58 | ) | (58 | ) | (0.01 | )% | ||||||||||||
Total Unfunded Debt Investments - United States | $ | 72,571 | $ | (531 | ) | $ | (130 | ) | (0.01 | )% | |||||||||||||
Total Non-Controlled/Non-Affiliated Investments | $ | 1,438,889 | $ | 1,462,182 | 141.28 | % | |||||||||||||||||
Non-Controlled/Affiliated Investments(24) | |||||||||||||||||||||||
Funded Debt Investments - United States | |||||||||||||||||||||||
Edmentum Ultimate Holdings, LLC (16) | |||||||||||||||||||||||
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.) | |||||||||||||||||||||||
Education | Second lien (3)(10)(11) - Drawn | 5.00%/M | 6/9/2015 | 6/9/2020 | $ | 3,172 | $ | 3,172 | $ | 3,172 | |||||||||||||
Subordinated (3)(10) | 8.50% PIK/Q* | 6/9/2015 | 6/9/2020 | 4,491 | 4,486 | 4,491 | |||||||||||||||||
Subordinated (2)(10) | 10.00% PIK/Q* | 6/9/2015 | 6/9/2020 | 16,760 | 16,760 | 13,408 | |||||||||||||||||
Subordinated (3)(10) | 10.00% PIK/Q* | 6/9/2015 | 6/9/2020 | 4,123 | 4,123 | 3,298 | |||||||||||||||||
28,546 | 28,541 | 24,369 | 2.36 | % | |||||||||||||||||||
Permian Holdco 1, Inc. | |||||||||||||||||||||||
Permian Holdco 2, Inc. | |||||||||||||||||||||||
Energy | Subordinated (3)(10) | 14.00% PIK/Q* | 10/31/2016 | 10/15/2021 | 2,007 | 2,007 | 2,007 | ||||||||||||||||
Subordinated (3)(10)(11) - Drawn | 14.00% PIK/Q* | 10/31/2016 | 10/15/2021 | 696 | 696 | 696 | |||||||||||||||||
2,703 | 2,703 | 2,703 | 0.26 | % | |||||||||||||||||||
Total Funded Debt Investments - United States | $ | 31,249 | $ | 31,244 | $ | 27,072 | 2.62 | % | |||||||||||||||
Equity - United States | |||||||||||||||||||||||
HI Technology Corp. | |||||||||||||||||||||||
Business Services | Preferred shares (3)(10)(21) | — | 3/21/2017 | — | 2,768,000 | $ | 105,155 | $ | 105,155 | 10.16 | % | ||||||||||||
NMFC Senior Loan Program I LLC** | |||||||||||||||||||||||
Investment Fund | Membership interest (3)(10) | — | 6/13/2014 | — | — | 23,000 | 23,000 | 2.22 | % |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Sierra Hamilton Holdings Corporation | |||||||||||||||||||||||
Energy | Ordinary shares (2)(10) | — | 7/31/2017 | — | 25,000,000 | $ | 11,501 | $ | 11,094 | ||||||||||||||
Ordinary shares (3)(10) | — | 7/31/2017 | — | 2,786,000 | 1,281 | 1,236 | |||||||||||||||||
12,782 | 12,330 | 1.19 | % | ||||||||||||||||||||
Permian Holdco 1, Inc. | |||||||||||||||||||||||
Energy | Preferred shares (3)(10)(17) | — | 10/31/2016 | — | 1,569,226 | 6,829 | 8,631 | ||||||||||||||||
Ordinary shares (3)(10) | — | 10/31/2016 | — | 1,366,452 | 1,350 | 1,399 | |||||||||||||||||
8,179 | 10,030 | 0.97 | % | ||||||||||||||||||||
Edmentum Ultimate Holdings, LLC (16) | |||||||||||||||||||||||
Education | Ordinary shares (3)(10) | — | 6/9/2015 | — | 123,968 | 11 | 262 | ||||||||||||||||
Ordinary shares (2)(10) | — | 6/9/2015 | — | 107,143 | 9 | 227 | |||||||||||||||||
20 | 489 | 0.05 | % | ||||||||||||||||||||
Total Shares - United States | $ | 149,136 | $ | 151,004 | 14.59 | % | |||||||||||||||||
Total Funded Investments | $ | 180,380 | $ | 178,076 | 17.21 | % | |||||||||||||||||
Unfunded Debt Investments - United States | |||||||||||||||||||||||
Edmentum Ultimate Holdings, LLC (16) | |||||||||||||||||||||||
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.) | |||||||||||||||||||||||
Education | Second lien (3)(10)(11) - Undrawn | — | 6/9/2015 | 6/9/2020 | $ | 1,709 | $ | — | $ | — | — | % | |||||||||||
Permian Holdco 1, Inc. | |||||||||||||||||||||||
Permian Holdco 2, Inc. | |||||||||||||||||||||||
Energy | Subordinated (3)(10)(11) - Undrawn | — | 10/31/2016 | 10/15/2021 | 342 | — | — | — | % | ||||||||||||||
Total Unfunded Debt Investments - United States | $ | 2,051 | $ | — | $ | — | — | % | |||||||||||||||
Total Non-Controlled/Affiliated Investments | $ | 180,380 | $ | 178,076 | 17.21 | % | |||||||||||||||||
Controlled Investments(25) | |||||||||||||||||||||||
Funded Debt Investments - United States | |||||||||||||||||||||||
UniTek Global Services, Inc. | |||||||||||||||||||||||
Business Services | First lien (2)(10) | 10.20% (L + 8.50%/Q) | 1/13/2015 | 1/13/2019 | $ | 10,846 | $ | 10,846 | $ | 10,846 | |||||||||||||
First lien (2)(10) | 9.84% (L + 7.50% + 1.00% PIK/Q)* | 1/13/2015 | 1/13/2019 | 797 | 797 | 797 | |||||||||||||||||
Subordinated (2)(10) | 15.00% PIK/Q* | 1/13/2015 | 7/13/2019 | 2,003 | 2,003 | 2,003 | |||||||||||||||||
Subordinated (3)(10) | 15.00% PIK/Q* | 1/13/2015 | 7/13/2019 | 1,198 | 1,198 | 1,198 | |||||||||||||||||
14,844 | 14,844 | 14,844 | 1.43 | % | |||||||||||||||||||
Total Funded Debt Investments - United States | $ | 14,844 | $ | 14,844 | $ | 14,844 | 1.43 | % | |||||||||||||||
Equity - Canada | |||||||||||||||||||||||
NM APP Canada Corp.** | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 9/13/2016 | — | — | $ | 7,345 | $ | 7,962 | 0.77 | % | ||||||||||||
Total Shares - Canada | $ | 7,345 | $ | 7,962 | 0.77 | % |
Portfolio Company, Location and Industry(1) | Type of Investment | Interest Rate(9) | Acquisition Date | Maturity/Expiration Date | Principal Amount, Par Value or Shares | Cost | Fair Value | Percent of Net Assets | |||||||||||||||
Equity - United States | |||||||||||||||||||||||
NMFC Senior Loan Program II LLC** | |||||||||||||||||||||||
Investment Fund | Membership interest (3)(10) | — | 5/3/2016 | — | — | $ | 79,400 | $ | 79,400 | 7.67 | % | ||||||||||||
UniTek Global Services, Inc. | |||||||||||||||||||||||
Business Services | Preferred shares (2)(10)(18) | — | 1/13/2015 | — | 21,753,102 | 19,373 | 19,288 | ||||||||||||||||
Preferred shares (3)(10)(18) | — | 1/13/2015 | — | 6,011,522 | 5,353 | 5,330 | |||||||||||||||||
Preferred shares (3)(10)(19) | — | 6/30/2017 | — | 10,863,583 | 10,864 | 10,864 | |||||||||||||||||
Ordinary shares (2)(10) | — | 1/13/2015 | — | 2,096,477 | 1,925 | 7,313 | |||||||||||||||||
Ordinary shares (3)(10) | — | 1/13/2015 | — | 1,993,749 | 531 | 6,954 | |||||||||||||||||
38,046 | 49,749 | 4.81 | % | ||||||||||||||||||||
NM CLFX LP | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 10/6/2017 | — | — | 12,538 | 12,538 | 1.21 | % | ||||||||||||||
NM KRLN LLC | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 11/15/2016 | — | — | 7,510 | 8,195 | 0.79 | % | ||||||||||||||
NM DRVT LLC | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 11/18/2016 | — | — | 5,152 | 5,385 | 0.52 | % | ||||||||||||||
NM APP US LLC | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 9/13/2016 | — | — | 5,080 | 5,138 | 0.50 | % | ||||||||||||||
NM JRA LLC | |||||||||||||||||||||||
Net Lease | Membership interest (8)(10) | — | 8/12/2016 | — | — | 2,043 | 2,191 | 0.21 | % | ||||||||||||||
Total Shares - United States | $ | 149,769 | $ | 162,596 | 15.71 | % | |||||||||||||||||
Total Shares | $ | 157,114 | $ | 170,558 | 16.48 | % | |||||||||||||||||
Warrants - United States | |||||||||||||||||||||||
UniTek Global Services, Inc. | |||||||||||||||||||||||
Business Services | Warrants (3)(10) | — | 6/30/2017 | 12/31/2018 | 526,925 | $ | — | $ | — | — | % | ||||||||||||
Total Warrants - United States | $ | — | $ | — | — | % | |||||||||||||||||
Total Funded Investments | $ | 171,958 | $ | 185,402 | 17.91 | % | |||||||||||||||||
Unfunded Debt Investments - United States | |||||||||||||||||||||||
UniTek Global Services, Inc. | |||||||||||||||||||||||
Business Services | First lien (3)(10)(11) - Undrawn | — | 1/13/2015 | 1/13/2019 | $ | 2,048 | $ | — | $ | — | |||||||||||||
First lien (3)(10)(11) - Undrawn | — | 1/13/2015 | 1/13/2019 | 758 | — | — | |||||||||||||||||
2,806 | — | — | — | % | |||||||||||||||||||
Total Unfunded Debt Investments - United States | $ | 2,806 | $ | — | $ | — | — | % | |||||||||||||||
Total Controlled Investments | $ | 171,958 | $ | 185,402 | 17.91 | % | |||||||||||||||||
Total Investments | $ | 1,791,227 | $ | 1,825,660 | 176.4 | % |
(1) | New Mountain Finance Corporation (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act. |
(2) | Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company as Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower, Wells Fargo Securities, LLC as the Administrative Agent, and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian. See Note 7. Borrowings, for details. |
(3) | Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Stifel Bank & Trust as Lenders. See Note 7. Borrowings, for details. |
(4) | Investment is held in New Mountain Finance SBIC, L.P. |
(5) | Investment is held in NMF YP Holdings, Inc. |
(6) | Investment is held in NMF Ancora Holdings, Inc. |
(7) | Investment is held in NMF QID NGL Holdings, Inc. |
(8) | Investment is held in New Mountain Net Lease Corporation. |
(9) | All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of December 31, 2017. |
(10) | The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details. |
(11) | Par Value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net the impact of paydowns and cash paid for drawn revolvers or delayed draws. |
(12) | The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds a tranche A first lien term loan and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation. |
(13) | The Company holds investments in three related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC), class A preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC. |
(14) | The Company holds investments in QC McKissock Investment, LLC and one related entity of QC McKissock Investment, LLC. The Company holds a first lien term loan in QC McKissock Investment, LLC (which at closing represented 71.1% of the ownership in the Series A common units of McKissock Investment Holdings, LLC) and holds a first lien term loan and a delayed draw term loan in McKissock, LLC, a wholly-owned subsidiary of McKissock Investment Holdings, LLC. |
(15) | The Company holds investments in TWDiamondback Holdings Corp. and one related entity of TWDiamondback Holdings Corp. The Company holds preferred equity in TWDiamondback Holdings Corp. and holds a first lien last out term loan and a delayed draw term loan in Diamondback Drugs of Delaware LLC, a wholly-owned subsidiary of TWDiamondback Holdings Corp. |
(16) | The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes and ordinary equity in Edmentum Ultimate Holdings, LLC and holds a second lien revolver in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC. |
(17) | The Company holds preferred equity in Permian Holdco 1, Inc. that is entitled to receive cumulative preferential dividends at a rate of 12.0% per annum payable in additional shares. |
(18) | The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares. |
(19) | The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares. |
(20) | The Company holds equity investments in TW-NHME Holdings Corp., and holds a second lien term loan investment in National HME, Inc., a wholly-owned subsidiary of TW-NHME Holdings Corp. |
(21) | The Company holds convertible preferred equity in HI Technology Corp that is accruing dividends at a rate of 15.0% per annum. |
(22) | The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares. |
(23) | The Company holds preferred equity in Avatar Topco, Inc., and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum. |
(24) | Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of December 31, 2017 and December 31, 2016 along with transactions during the year ended December 31, 2017 in which the issuer was a non-controlled/affiliated investment is as follows: |
Portfolio Company | Fair Value at December 31, 2016 | Gross Additions (A) | Gross Redemptions (B) | Net Realized Gains (Losses) | Net Change In Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2017 | Interest Income | Dividend Income | Other Income | |||||||||||||||||||||||||||
Edmentum Ultimate Holdings, LLC/Edmentum Inc. | $ | 23,247 | $ | 10,912 | $ | (5,381 | ) | $ | — | $ | (3,920 | ) | $ | 24,858 | $ | 2,538 | $ | — | $ | — | ||||||||||||||||
HI Technology Corp. | — | 105,155 | — | — | — | 105,155 | — | 11,667 | — | |||||||||||||||||||||||||||
NMFC Senior Loan Program I LLC | 23,000 | — | — | — | — | 23,000 | — | 3,498 | 1,156 | |||||||||||||||||||||||||||
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. | 11,193 | 1,916 | — | — | (376 | ) | 12,733 | 270 | 960 | 30 | ||||||||||||||||||||||||||
Sierra Hamilton Holdings Corporation | — | 12,782 | — | — | (452 | ) | 12,330 | — | — | — | ||||||||||||||||||||||||||
Total Non-Controlled/Affiliated Investments | $ | 57,440 | $ | 130,765 | $ | (5,381 | ) | $ | — | $ | (4,748 | ) | $ | 178,076 | $ | 2,808 | $ | 16,125 | $ | 1,186 |
(A) | Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind (“PIK”) interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement at fair value of an existing portfolio company into this category from a different category. |
(B) | Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category. |
(25) | Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote 25.0% or more of the outstanding voting securities of the investment. Fair value as of December 31, 2017 and December 31, 2016 along with transactions during the year ended December 31, 2017 in which the issuer was a controlled investment, is as follows: |
Portfolio Company | Fair Value at December 31, 2016 | Gross Additions (A) | Gross Redemptions (B) | Net Realized Gains (Losses) | Net Change In Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2017 | Interest Income | Dividend Income | Other Income | |||||||||||||||||||||||||||
New Mountain Net Lease Corporation | $ | 27,000 | $ | — | $ | (27,000 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
NM APP CANADA CORP | — | 7,345 | — | — | 617 | 7,962 | — | 911 | — | |||||||||||||||||||||||||||
NM APP US LLC | — | 5,080 | — | — | 58 | 5,138 | — | 594 | — | |||||||||||||||||||||||||||
NM CLFX LP | — | 12,538 | — | — | — | 12,538 | — | 341 | — | |||||||||||||||||||||||||||
NM DRVT LLC | — | 5,152 | — | — | 233 | 5,385 | — | 520 | — | |||||||||||||||||||||||||||
NM JRA LLC | — | 2,043 | — | — | 148 | 2,191 | — | 232 | — | |||||||||||||||||||||||||||
NM KRLN LLC | — | 7,510 | — | — | 685 | 8,195 | — | 736 | — | |||||||||||||||||||||||||||
NMFC Senior Loan Program II LLC | 71,460 | 7,940 | — | — | — | 79,400 | — | 12,406 | — | |||||||||||||||||||||||||||
UniTek Global Services, Inc. | 56,361 | 14,777 | (4,006 | ) | — | (2,539 | ) | 64,593 | 1,709 | 4,415 | 819 | |||||||||||||||||||||||||
Total Controlled Investments | $ | 154,821 | $ | 62,385 | $ | (31,006 | ) | $ | — | $ | (798 | ) | $ | 185,402 | $ | 1,709 | $ | 20,155 | $ | 819 |
(A) | Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement at fair value of an existing portfolio company into this category from a different category. |
(B) | Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category. |
* | All or a portion of interest contains PIK interest. |
** | Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of December 31, 2017, 11.0% of the Company’s total investments were non-qualifying assets. |
December 31, 2017 | |||
Investment Type | Percent of Total Investments at Fair Value | ||
First lien | 37.99 | % | |
Second lien | 37.41 | % | |
Subordinated | 3.85 | % | |
Equity and other | 20.75 | % | |
Total investments | 100.00 | % |
December 31, 2017 | |||
Industry Type | Percent of Total Investments at Fair Value | ||
Business Services | 31.85 | % | |
Software | 16.33 | % | |
Healthcare Services | 9.60 | % | |
Education | 9.48 | % | |
Consumer Services | 7.18 | % | |
Distribution & Logistics | 6.15 | % | |
Investment Fund | 5.61 | % | |
Federal Services | 4.30 | % | |
Energy | 4.06 | % | |
Net Lease | 2.27 | % | |
Healthcare Information Technology | 1.86 | % | |
Packaging | 0.79 | % | |
Business Products | 0.52 | % | |
Total investments | 100.00 | % |
December 31, 2017 | |||
Interest Rate Type | Percent of Total Investments at Fair Value | ||
Floating rates | 87.48 | % | |
Fixed rates | 12.52 | % | |
Total investments | 100.00 | % |
(1) | Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services. |
(2) | Investments for which indicative prices are obtained from various pricing services and/or brokers or dealers are valued through a multi-step valuation process, as described below, to determine whether the quote(s) obtained is representative of fair value in accordance with GAAP. |
a. | Bond quotes are obtained through independent pricing services. Internal reviews are performed by the investment professionals of the Investment Adviser to ensure that the quote obtained is representative of fair value in accordance with GAAP and, if so, the quote is used. If the Investment Adviser is unable to sufficiently validate the quote(s) internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below); and |
b. | For investments other than bonds, the Company looks at the number of quotes readily available and performs the following procedures: |
i. | Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained. |
ii. | Investments for which one quote is received from a pricing service are validated internally. The investment professionals of the Investment Adviser analyze the market quotes obtained using an array of valuation methods (further described below) to validate the fair value. If the Investment Adviser is unable to sufficiently validate the quote internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below). |
(3) | Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process: |
a. | Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring; |
b. | Preliminary valuation conclusions will then be documented and discussed with the Company’s senior management; |
c. | If an investment falls into (3) above for four consecutive quarters and if the investment’s par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for each portfolio investment for which the Company does not have a readily available market quotation will be reviewed by an independent valuation firm engaged by the Company’s board of directors; and |
d. | When deemed appropriate by the Company’s management, an independent valuation firm may be engaged to review and value investment(s) of a portfolio company, without any preliminary valuation being performed by the Investment Adviser. The investment professionals of the Investment Adviser will review and validate the value provided. |
Lease | Total | Fair Value as of | ||||||||||
Portfolio Company | Tenant | Expiration Date | Location | Square Feet | March 31, 2018 | |||||||
NM GLCR LLC | Artic Glacier U.S.A. | 2/28/2038 | Los Angeles, CA/ San Diego, CA/ Bakersfield, CA/ East Bay, CA | 214 | $ | 14,750 | ||||||
NM CLFX LP | Victor Equipment Company | 08/31/2033 | Denton, TX | 423 | 12,538 | |||||||
NM KRLN LLC | Kirlin Group, LLC | 6/30/2029 | Rockville, MD | 95 | 8,328 | |||||||
NM APP Canada Corp. | A.P. Plasman, Inc. | 9/30/2031 | Ontario, Canada | 436 | 8,234 | |||||||
NM DRVT LLC | FMH Conveyors, LLC | 10/31/2031 | Jonesboro, AR | 195 | 5,446 | |||||||
NM APP US LLC | Plasman Corp, LLC / A-Brite LP | 9/30/2033 | Fort Payne, AL/Cleveland, OH | 261 | 5,206 | |||||||
NM JRA LLC | J.R. Automation Technologies, LLC | 1/31/2031 | Holland, MI | 88 | 2,215 | |||||||
$ | 56,717 |
Cost | Fair Value | ||||||
First lien | $ | 734,071 | $ | 738,027 | |||
Second lien | 766,631 | 774,515 | |||||
Subordinated | 69,223 | 67,918 | |||||
Equity and other | 375,733 | 397,463 | |||||
Total investments | $ | 1,945,658 | $ | 1,977,923 |
Cost | Fair Value | ||||||
Business Services | $ | 633,138 | $ | 650,179 | |||
Software | 287,848 | 294,622 | |||||
Healthcare Services | 264,881 | 264,355 | |||||
Education | 190,454 | 186,089 | |||||
Distribution & Logistics | 113,409 | 117,396 | |||||
Investment Fund | 102,400 | 102,400 | |||||
Consumer Services | 85,204 | 86,145 | |||||
Federal Services | 75,765 | 77,273 | |||||
Energy | 70,015 | 73,904 | |||||
Net Lease | 54,418 | 56,717 | |||||
Healthcare Information Technology | 33,534 | 34,008 | |||||
Business Products | 20,279 | 20,444 | |||||
Packaging | 14,313 | 14,391 | |||||
Total investments | $ | 1,945,658 | $ | 1,977,923 |
Cost | Fair Value | ||||||
First lien | $ | 688,696 | $ | 693,563 | |||
Second lien | 674,536 | 682,950 | |||||
Subordinated | 70,991 | 70,257 | |||||
Equity and other | 357,004 | 378,890 | |||||
Total investments | $ | 1,791,227 | $ | 1,825,660 |
Cost | Fair Value | ||||||
Business Services | $ | 566,344 | $ | 581,434 | |||
Software | 291,445 | 298,172 | |||||
Healthcare Services | 174,046 | 175,348 | |||||
Education | 176,399 | 173,072 | |||||
Consumer Services | 129,311 | 131,116 | |||||
Distribution & Logistics | 107,835 | 112,241 | |||||
Investment Fund | 102,400 | 102,400 | |||||
Federal Services | 77,001 | 78,433 | |||||
Energy | 69,411 | 74,124 | |||||
Net Lease | 39,668 | 41,409 | |||||
Healthcare Information Technology | 33,525 | 34,020 | |||||
Packaging | 14,309 | 14,391 | |||||
Business Products | 9,533 | 9,500 | |||||
Total investments | $ | 1,791,227 | $ | 1,825,660 |
March 31, 2018 | December 31, 2017 | |||||
First lien investments (1) | 376,233 | 386,100 | ||||
Weighted average interest rate on first lien investments (2) | 6.36 | % | 6.05 | % | ||
Number of portfolio companies in SLP II | 32 | 35 | ||||
Largest portfolio company investment (1) | 17,281 | 17,369 | ||||
Total of five largest portfolio company investments (1) | 79,442 | 81,728 |
(1) | Reflects principal amount or par value of investment. |
(2) | Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments. |
Portfolio Company and Type of Investment | Industry | Interest Rate (1) | Maturity Date | Principal Amount or Par Value | Cost | Fair Value (2) | ||||||||||||
Funded Investments - First lien: | ||||||||||||||||||
Access CIG, LLC | Business Services | 5.63% (L + 3.75%) | 2/27/2025 | $ | 8,273 | $ | 8,232 | $ | 8,379 | |||||||||
ADG, LLC | Healthcare Services | 6.63% (L + 4.75%) | 9/28/2023 | 16,991 | 16,852 | 16,736 | ||||||||||||
ASG Technologies Group, Inc. | Software | 5.38% (L + 3.50%) | 7/31/2024 | 7,463 | 7,428 | 7,490 | ||||||||||||
AVSC Holding Corp. | Business Services | 5.13% (L + 3.25%) | 3/3/2025 | 1,500 | 1,496 | 1,503 | ||||||||||||
Beaver-Visitec International Holdings, Inc. | Healthcare Products | 7.30% (L + 5.00%) | 8/21/2023 | 14,775 | 14,656 | 14,849 | ||||||||||||
DigiCert, Inc. | Business Services | 6.52% (L + 4.75%) | 10/31/2024 | 10,000 | 9,952 | 10,129 | ||||||||||||
FPC Holdings, Inc. | Distribution & Logistics | 5.88% (L + 4.50%) | 11/18/2022 | 15,000 | 14,550 | 14,681 | ||||||||||||
Globallogic Holdings Inc. | Business Services | 6.05% (L + 3.75%) | 6/20/2022 | 9,677 | 9,615 | 9,762 | ||||||||||||
Greenway Health, LLC | Software | 6.55% (L + 4.25%) | 2/16/2024 | 14,887 | 14,823 | 15,036 | ||||||||||||
Idera, Inc. | Software | 6.38% (L + 4.50%) | 6/28/2024 | 12,588 | 12,472 | 12,729 | ||||||||||||
J.D. Power (fka J.D. Power and Associates) | Business Services | 6.55% (L + 4.25%) | 9/7/2023 | 13,324 | 13,276 | 13,390 | ||||||||||||
Keystone Acquisition Corp. | Healthcare Services | 7.55% (L + 5.25%) | 5/1/2024 | 5,373 | 5,325 | 5,407 | ||||||||||||
LSCS Holdings, Inc. | Healthcare Services | 6.40% (L + 4.25%) | 3/17/2025 | 4,400 | 4,378 | 4,389 | ||||||||||||
Market Track, LLC | Business Services | 6.55% (L + 4.25%) | 6/5/2024 | 11,910 | 11,856 | 11,940 | ||||||||||||
Medical Solutions Holdings, Inc. | Healthcare Services | 5.63% (L + 3.75%) | 6/14/2024 | 6,965 | 6,933 | 6,998 | ||||||||||||
Ministry Brands, LLC | Software | 6.88% (L + 5.00%) | 12/2/2022 | 2,132 | 2,123 | 2,132 | ||||||||||||
Ministry Brands, LLC | Software | 6.88% (L + 5.00%) | 12/2/2022 | 7,748 | 7,717 | 7,748 | ||||||||||||
Navex Global, Inc. | Software | 6.13% (L + 4.25%) | 11/19/2021 | 14,859 | 14,695 | 14,924 | ||||||||||||
Navicure, Inc. | Healthcare Services | 5.63% (L + 3.75%) | 11/1/2024 | 14,962 | 14,891 | 15,056 | ||||||||||||
OEConnection LLC | Business Services | 6.46% (L + 4.00%) | 11/22/2024 | 14,963 | 14,890 | 15,056 | ||||||||||||
Pathway Partners Vet Management Company LLC | Consumer Services | 6.13% (L + 4.25%) | 10/10/2024 | 1,878 | 1,868 | 1,882 | ||||||||||||
Pathway Partners Vet Management Company LLC | Consumer Services | 6.13% (L + 4.25%) | 10/10/2024 | 6,945 | 6,913 | 6,963 | ||||||||||||
Peraton Corp. (fka MHVC Acquisition Corp.) | Federal Services | 7.56% (L + 5.25%) | 4/29/2024 | 10,421 | 10,375 | 10,499 | ||||||||||||
Poseidon Intermediate, LLC | Software | 6.13% (L + 4.25%) | 8/15/2022 | 14,852 | 14,849 | 14,926 | ||||||||||||
Project Accelerate Parent, LLC | Business Services | 5.94% (L + 4.25%) | 1/2/2025 | 15,000 | 14,927 | 15,131 | ||||||||||||
PSC Industrial Holdings Corp. | Industrial Services | 6.04% (L + 4.25%) | 10/11/2024 | 10,474 | 10,375 | 10,578 | ||||||||||||
Quest Software US Holdings Inc. | Software | 7.27% (L + 5.50%) | 10/31/2022 | 9,899 | 9,780 | 10,095 | ||||||||||||
Salient CRGT Inc. | Federal Services | 7.63% (L + 5.75%) | 2/28/2022 | 14,076 | 13,962 | 14,252 | ||||||||||||
Severin Acquisition, LLC | Software | 6.64% (L + 4.75%) | 7/30/2021 | 14,850 | 14,793 | 14,999 | ||||||||||||
Shine Acquisition Co. S.a.r.l./ Boing US Holdco Inc. | Consumer Services | 5.29% (L + 3.50%) | 10/3/2024 | 14,962 | 14,927 | 15,047 | ||||||||||||
Sierra Acquisition Inc. | Food & Beverage | 6.13% (L + 4.25%) | 11/11/2024 | 3,741 | 3,723 | 3,772 | ||||||||||||
WP CityMD Bidco LLC | Healthcare Services | 6.30% (L + 4.00%) | 6/7/2024 | 14,925 | 14,891 | 15,009 | ||||||||||||
YI, LLC | Healthcare Services | 6.30% (L + 4.00%) | 11/7/2024 | 1,103 | 1,111 | 1,109 | ||||||||||||
YI, LLC | Healthcare Services | 6.30% (L + 4.00%) | 11/7/2024 | 12,130 | 12,119 | 12,190 | ||||||||||||
Zywave, Inc. | Software | 7.18% (L + 5.00%) | 11/17/2022 | 17,281 | 17,212 | 17,281 | ||||||||||||
Total Funded Investments | $ | 370,327 | $ | 367,985 | $ | 372,067 | ||||||||||||
Unfunded Investments - First lien: | ||||||||||||||||||
Access CIG, LLC | Business Services | — | 8/27/2018 | $ | 1,727 | $ | — | $ | 22 | |||||||||
LSCS Holdings, Inc. | Healthcare Services | — | 9/17/2018 | 1,100 | (6 | ) | (3 | ) | ||||||||||
Pathway Partners Vet Management Company LLC | Consumer Services | — | 10/10/2019 | 1,142 | (6 | ) | 3 | |||||||||||
YI, LLC | Healthcare Services | — | 11/7/2018 | 1,937 | (10 | ) | 10 | |||||||||||
Total Unfunded Investments | $ | 5,906 | $ | (22 | ) | $ | 32 | |||||||||||
Total Investments | $ | 376,233 | $ | 367,963 | $ | 372,099 |
(1) | All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of March 31, 2018. |
(2) | Represents the fair value in accordance with Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). The Company's board of directors does not determine the fair value of the investments held by SLP II. |
Portfolio Company and Type of Investment | Industry | Interest Rate (1) | Maturity Date | Principal Amount or Par Value | Cost | Fair Value (2) | ||||||||||||
Funded Investments - First lien | ||||||||||||||||||
ADG, LLC | Healthcare Services | 6.32% (L + 4.75%) | 9/28/2023 | $ | 17,034 | $ | 16,890 | $ | 16,779 | |||||||||
ASG Technologies Group, Inc. | Software | 6.32% (L + 4.75%) | 7/31/2024 | 7,481 | 7,446 | 7,547 | ||||||||||||
Beaver-Visitec International Holdings, Inc. | Healthcare Products | 6.69% (L + 5.00%) | 8/21/2023 | 14,812 | 14,688 | 14,813 | ||||||||||||
DigiCert, Inc. | Business Services | 6.13% (L + 4.75%) | 10/31/2024 | 10,000 | 9,951 | 10,141 | ||||||||||||
Emerald 2 Limited | Business Services | 5.69% (L + 4.00%) | 5/14/2021 | 1,266 | 1,211 | 1,267 | ||||||||||||
Evo Payments International, LLC | Business Services | 5.57% (L + 4.00%) | 12/22/2023 | 17,369 | 17,292 | 17,492 | ||||||||||||
Explorer Holdings, Inc. | Healthcare Services | 5.13% (L + 3.75%) | 5/2/2023 | 2,940 | 2,917 | 2,973 | ||||||||||||
Globallogic Holdings Inc. | Business Services | 6.19% (L + 4.50%) | 6/20/2022 | 9,677 | 9,611 | 9,755 | ||||||||||||
Greenway Health, LLC | Software | 5.94% (L + 4.25%) | 2/16/2024 | 14,925 | 14,858 | 15,074 | ||||||||||||
Idera, Inc. | Software | 6.57% (L + 5.00%) | 6/28/2024 | 12,619 | 12,499 | 12,556 | ||||||||||||
J.D. Power (fka J.D. Power and Associates) | Business Services | 5.94% (L + 4.25%) | 9/7/2023 | 13,357 | 13,308 | 13,407 | ||||||||||||
Keystone Acquisition Corp. | Healthcare Services | 6.94% (L + 5.25%) | 5/1/2024 | 5,386 | 5,336 | 5,424 | ||||||||||||
Market Track, LLC | Business Services | 5.94% (L + 4.25%) | 6/5/2024 | 11,940 | 11,884 | 11,940 | ||||||||||||
McGraw-Hill Global Education Holdings, LLC | Education | 5.57% (L + 4.00%) | 5/4/2022 | 9,850 | 9,813 | 9,844 | ||||||||||||
Medical Solutions Holdings, Inc. | Healthcare Services | 5.82% (L + 4.25%) | 6/14/2024 | 6,965 | 6,932 | 7,043 | ||||||||||||
Ministry Brands, LLC | Software | 6.38% (L + 5.00%) | 12/2/2022 | 2,138 | 2,128 | 2,138 | ||||||||||||
Ministry Brands, LLC | Software | 6.38% (L + 5.00%) | 12/2/2022 | 7,768 | 7,735 | 7,768 | ||||||||||||
Navex Global, Inc. | Software | 5.82% (L + 4.25%) | 11/19/2021 | 14,897 | 14,724 | 14,971 | ||||||||||||
Navicure, Inc. | Healthcare Services | 5.11% (L + 3.75%) | 11/1/2024 | 15,000 | 14,926 | 15,000 | ||||||||||||
OEConnection LLC | Business Services | 5.69% (L + 4.00%) | 11/22/2024 | 15,000 | 14,925 | 14,981 | ||||||||||||
Pathway Partners Vet Management Company LLC | Consumer Services | 5.82% (L + 4.25%) | 10/10/2024 | 6,963 | 6,929 | 6,980 | ||||||||||||
Pathway Partners Vet Management Company LLC | Consumer Services | 5.82% (L + 4.25%) | 10/10/2024 | 291 | 290 | 292 | ||||||||||||
Peraton Corp. (fka MHVC Acquisition Corp.) | Federal Services | 6.95% (L + 5.25%) | 4/29/2024 | 10,448 | 10,399 | 10,526 | ||||||||||||
Poseidon Intermediate, LLC | Software | 5.82% (L + 4.25%) | 8/15/2022 | 14,881 | 14,877 | 14,955 | ||||||||||||
Project Accelerate Parent, LLC | Business Services | 5.94% (L + 4.25%) | 1/2/2025 | 15,000 | 14,925 | 15,038 | ||||||||||||
PSC Industrial Holdings Corp. | Industrial Services | 5.71% (L + 4.25%) | 10/11/2024 | 10,500 | 10,398 | 10,500 | ||||||||||||
Quest Software US Holdings Inc. | Software | 6.92% (L + 5.50%) | 10/31/2022 | 9,899 | 9,775 | 10,071 | ||||||||||||
Salient CRGT Inc. | Federal Services | 7.32% (L + 5.75%) | 2/28/2022 | 14,433 | 14,310 | 14,559 | ||||||||||||
Severin Acquisition, LLC | Software | 6.32% (L + 4.75%) | 7/30/2021 | 14,888 | 14,827 | 14,813 | ||||||||||||
Shine Acquisitoin Co. S.à.r.l / Boing US Holdco Inc. | Consumer Services | 4.88% (L + 3.50%) | 10/3/2024 | 15,000 | 14,964 | 15,108 | ||||||||||||
Sierra Acquisition, Inc. | Food & Beverage | 5.68% (L + 4.25%) | 11/11/2024 | 3,750 | 3,731 | 3,789 | ||||||||||||
TMK Hawk Parent, Corp. | Distribution & Logistics | 4.88% (L + 3.50%) | 8/28/2024 | 1,671 | 1,667 | 1,686 | ||||||||||||
University Support Services LLC (St. George's University Scholastic Services LLC) | Education | 5.82% (L + 4.25%) | 7/6/2022 | 1,875 | 1,875 | 1,900 | ||||||||||||
Vencore, Inc. (fka SI Organization, Inc., The) | Federal Services | 6.44% (L + 4.75%) | 11/23/2019 | 10,686 | 10,673 | 10,835 | ||||||||||||
WP CityMD Bidco LLC | Healthcare Services | 5.69% (L + 4.00%) | 6/7/2024 | 14,963 | 14,928 | 15,009 | ||||||||||||
YI, LLC | Healthcare Services | 5.69% (L + 4.00%) | 11/7/2024 | 8,240 | 8,204 | 8,230 | ||||||||||||
Zywave, Inc. | Software | 6.61% (L + 5.00%) | 11/17/2022 | 17,325 | 17,252 | 17,325 | ||||||||||||
Total Funded Investments | $ | 381,237 | $ | 379,098 | $ | 382,529 | ||||||||||||
Unfunded Investments - First lien | ||||||||||||||||||
Pathway Partners Vet Management Company LLC | Consumer Services | — | 10/10/2019 | $ | 2,728 | $ | (14 | ) | $ | 7 | ||||||||
TMK Hawk Parent, Corp. | Distribution & Logistics | — | 3/28/2018 | 75 | — | 1 | ||||||||||||
YI, LLC | Healthcare Services | — | 11/7/2018 | 2,060 | (9 | ) | (3 | ) | ||||||||||
Total Unfunded Investments | $ | 4,863 | $ | (23 | ) | $ | 5 | |||||||||||
Total Investments | $ | 386,100 | $ | 379,075 | $ | 382,534 |
(1) | All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2017. |
(2) | Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP II. |
Selected Balance Sheet Information: | March 31, 2018 | December 31, 2017 | |||||
Investments at fair value (cost of $367,963 and $379,075, respectively) | $ | 372,099 | $ | 382,534 | |||
Receivable from unsettled securities sold | 19,466 | — | |||||
Cash and other assets | 7,585 | 8,065 | |||||
Total assets | $ | 399,150 | $ | 390,599 | |||
Credit facility | $ | 255,070 | $ | 266,270 | |||
Deferred financing costs | (1,818 | ) | (1,966 | ) | |||
Payable for unsettled securities purchased | 34,636 | 15,964 | |||||
Distribution payable | 3,300 | 3,500 | |||||
Other liabilities | 3,191 | 2,891 | |||||
Total liabilities | 294,379 | 286,659 | |||||
Members' capital | $ | 104,771 | $ | 103,940 | |||
Total liabilities and members' capital | $ | 399,150 | $ | 390,599 |
Three Months Ended | |||||||
Selected Statement of Operations Information: | March 31, 2018 | March 31, 2017 | |||||
Interest income | $ | 5,630 | $ | 5,173 | |||
Other income | 22 | 214 | |||||
Total investment income | 5,652 | 5,387 | |||||
Interest and other financing expenses | 2,428 | 1,849 | |||||
Other expenses | 224 | 162 | |||||
Total expenses | 2,652 | 2,011 | |||||
Net investment income | 3,000 | 3,376 | |||||
Net realized gains on investments | 453 | 1,108 | |||||
Net change in unrealized appreciation (depreciation) of investments | 677 | (106 | ) | ||||
Net increase in members' capital | $ | 4,130 | $ | 4,378 |
• | Quoted prices for similar assets or liabilities in active markets; |
• | Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently); |
• | Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including foreign exchange forward contracts); and |
• | Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. |
Total | Level I | Level II | Level III | ||||||||||||
First lien | $ | 738,027 | $ | — | $ | 88,636 | $ | 649,391 | |||||||
Second lien | 774,515 | — | 336,379 | 438,136 | |||||||||||
Subordinated | 67,918 | — | 39,726 | 28,192 | |||||||||||
Equity and other | 397,463 | 17 | — | 397,446 | |||||||||||
Total investments | $ | 1,977,923 | $ | 17 | $ | 464,741 | $ | 1,513,165 |
Total | Level I | Level II | Level III | ||||||||||||
First lien | $ | 693,563 | $ | — | $ | 136,866 | $ | 556,697 | |||||||
Second lien | 682,950 | — | 239,868 | 443,082 | |||||||||||
Subordinated | 70,257 | — | 43,156 | 27,101 | |||||||||||
Equity and other | 378,890 | 16 | — | 378,874 | |||||||||||
Total investments | $ | 1,825,660 | $ | 16 | $ | 419,890 | $ | 1,405,754 |
Total | First Lien | Second Lien | Subordinated | Equity and other | |||||||||||||||
Fair value, December 31, 2017 | $ | 1,405,754 | $ | 556,697 | $ | 443,082 | $ | 27,101 | $ | 378,874 | |||||||||
Total gains or losses included in earnings: | |||||||||||||||||||
Net realized gains on investments | 97 | 97 | — | — | — | ||||||||||||||
Net change in unrealized (depreciation) appreciation | (1,554 | ) | (282 | ) | (1,009 | ) | (107 | ) | (156 | ) | |||||||||
Purchases, including capitalized PIK and revolver fundings | 198,319 | 134,287 | 44,106 | 1,198 | 18,728 | ||||||||||||||
Proceeds from sales and paydowns of investments | (89,333 | ) | (89,333 | ) | — | — | — | ||||||||||||
Transfers into Level III(1) | 76,037 | 76,037 | — | — | — | ||||||||||||||
Transfers out of Level III(1) | (76,155 | ) | (28,112 | ) | (48,043 | ) | — | — | |||||||||||
Fair Value, March 31, 2018 | $ | 1,513,165 | $ | 649,391 | $ | 438,136 | $ | 28,192 | $ | 397,446 | |||||||||
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period: | $ | (1,043 | ) | $ | 229 | $ | (1,009 | ) | $ | (107 | ) | $ | (156 | ) |
(1) | As of March 31, 2018, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred. |
Total | First Lien | Second Lien | Subordinated | Equity and other | |||||||||||||||
Fair value, December 31, 2016 | $ | 1,066,878 | $ | 530,601 | $ | 324,177 | $ | 24,653 | $ | 187,447 | |||||||||
Total gains or losses included in earnings: | |||||||||||||||||||
Net realized gains on investments | 311 | 19 | 292 | — | — | ||||||||||||||
Net change in unrealized (depreciation) appreciation | (964 | ) | 139 | 1,770 | 211 | (3,084 | ) | ||||||||||||
Purchases, including capitalized PIK and revolver fundings | 196,404 | 37,058 | 44,020 | 739 | 114,587 | ||||||||||||||
Proceeds from sales and paydowns of investments | (50,061 | ) | (34,425 | ) | (15,636 | ) | — | — | |||||||||||
Transfers into Level III(1) | 44,352 | 19,608 | 24,744 | — | — | ||||||||||||||
Transfers out of Level III(1) | (57,881 | ) | (26,032 | ) | (31,848 | ) | — | (1 | ) | ||||||||||
Fair Value, March 31, 2017 | $ | 1,199,039 | $ | 526,968 | $ | 347,519 | $ | 25,603 | $ | 298,949 | |||||||||
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period: | $ | (744 | ) | $ | 359 | $ | 1,770 | $ | 211 | $ | (3,084 | ) |
(1) | As of March 31, 2017, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred. |
Range | ||||||||||||||||
Type | Fair Value as of March 31, 2018 | Approach | Unobservable Input | Low | High | Weighted Average | ||||||||||
First lien | $ | 424,391 | Market & income approach | EBITDA multiple | 2.0x | 20.0x | 11.6x | |||||||||
Revenue multiple | 1.3x | 6.0x | 3.2x | |||||||||||||
Discount rate | 7.0 | % | 12.3 | % | 9.5 | % | ||||||||||
145,485 | Market quote | Broker quote | N/A | N/A | N/A | |||||||||||
79,515 | Other | N/A(1) | N/A | N/A | N/A | |||||||||||
Second lien | 247,912 | Market & income approach | EBITDA multiple | 7.5x | 16.8x | 12.7x | ||||||||||
Discount rate | 9.5 | % | 13.3 | % | 11.3 | % | ||||||||||
190,224 | Market quote | Broker quote | N/A | N/A | N/A | |||||||||||
Subordinated | 28,192 | Market & income approach | EBITDA multiple | 4.5x | 12.3x | 9.0x | ||||||||||
Discount rate | 8.0 | % | 14.5 | % | 13.1 | % | ||||||||||
Equity and other | 396,225 | Market & income approach | EBITDA multiple | 2.5x | 18.0x | 11.1x | ||||||||||
Discount rate | 7.0 | % | 23.2 | % | 12.2 | % | ||||||||||
1,221 | Black Scholes analysis | Expected life in years | 8.0 | 8.0 | 8.0 | |||||||||||
Volatility | 39.3 | % | 39.3 | % | 39.3 | % | ||||||||||
Discount rate | 3.0 | % | 3.0 | % | 3.0 | % | ||||||||||
$ | 1,513,165 |
(1) | Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date. |
Range | ||||||||||||||||
Type | Fair Value as of December 31, 2017 | Approach | Unobservable Input | Low | High | Weighted Average | ||||||||||
First lien | $ | 458,543 | Market & income approach | EBITDA multiple | 2.0x | 20.0x | 11.8x | |||||||||
Revenue multiple | 3.5x | 8.0x | 6.1x | |||||||||||||
Discount rate | 6.5 | % | 11.2 | % | 9.2 | % | ||||||||||
98,154 | Market quote | Broker quote | N/A | N/A | N/A | |||||||||||
Second lien | 220,597 | Market & income approach | EBITDA multiple | 8.0x | 16.0x | 11.4x | ||||||||||
Discount rate | 7.9 | % | 12.5 | % | 10.8 | % | ||||||||||
215,098 | Market quote | Broker quote | N/A | N/A | N/A | |||||||||||
7,387 | Other | N/A(1) | N/A | N/A | N/A | |||||||||||
Subordinated | 27,101 | Market & income approach | EBITDA multiple | 4.5x | 11.8x | 9.0x | ||||||||||
Revenue multiple | 0.5x | 1.0x | 0.8x | |||||||||||||
Discount rate | 7.9 |