ptmn-10q_20200331.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to

Commission File No. 814-00735

Portman Ridge Finance Corporation

(Exact name of Registrant as specified in its charter)

 

 

Delaware

 

20-5951150

(State or other jurisdiction of

Incorporation or organization)

 

(I.R.S. Employer

Identification Number)

650 Madison Avenue, 23rd Floor

New York, New York 10022

(Address of principal executive offices)

(212) 891-2880

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

PTMN

 

The NASDAQ Global Select Market

6.125% Notes due 2022

 

KCAPL

 

The NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No

 

The number of outstanding shares of common stock of the registrant as of May 4, 2020 was 44,725,872.

 

 

 

 


TABLE OF CONTENTS

 

 

 

Page

 

 

 

 

Part I. Financial Information

 

 

 

 

Item 1.

Consolidated Financial Statements

 

 

 

 

 

Consolidated Balance Sheets as of March 31, 2020 (unaudited) and December 31, 2019

5

 

 

 

 

Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2020 and 2019

6

 

 

 

 

Consolidated Statements of Changes in Net Assets (unaudited) for the three months ended March 31, 2020 and 2019

7

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2020 and 2019

8

 

 

 

 

Consolidated Schedules of Investments as of March 31, 2020 (unaudited) and December 31, 2019

9

 

 

 

 

Consolidated Financial Highlights (unaudited) for the three months ended March 31, 2020 and 2019

28

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

29

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

65

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

88

 

 

 

Item 4.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

90

 

 

 

Item 5.

Controls and Procedures

90

 

 

 

 

Part II. Other Information

 

 

 

 

Item 1.

Legal Proceedings

91

 

 

 

Item 1A.

Risk Factors

91

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

92

 

 

 

Item 3.

Defaults Upon Senior Securities

93

 

 

 

Item 4.

Mine Safety Disclosures

93

 

 

 

Item 5.

Other Information

93

 

 

 

Item 6.

Exhibits

93

 

 

 

Signatures

 

95

 

2


NOTE ABOUT REFERENCES TO PORTMAN RIDGE FINANCE CORPORATION

In this Quarterly Report on Form 10-Q, the “Company”, “Portman Ridge”, “we”, “us” and “our” refer to Portman Ridge Finance Corporation and its wholly-owned subsidiaries, Great Lakes KCAP Funding I LLC, Great Lakes Portman Ridge Funding, LLC, OHA Investment Sub, LLC, OHA Asset Holdings II, LP, Kohlberg Capital Funding I LLC, KCAP Senior Funding I, LLC and KCAP Senior Funding I Holdings, LLC, unless the context otherwise requires.

NOTE ABOUT FORWARD-LOOKING STATEMENTS

The information contained in this item should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report and in conjunction with the financial statements and notes thereto in the Company’s Form 10-K for the year ended December 31, 2019, as filed with the U.S. Securities and Exchange Commission (the “Commission” or the “SEC”). In addition, some of the statements in this report constitute forward-looking statements. The matters discussed in this Quarterly Report, as well as in future oral and written statements by management of Portman Ridge Finance Corporation, that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “outlook, ”believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Important assumptions include our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly Report should not be regarded as a representation by us that our plans or objectives will be achieved. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

 

our future operating results;

 

our business prospects and the prospects of our existing and prospective portfolio companies;

 

the return or impact of current and future investments;

 

our contractual arrangements and other relationships with third parties;

 

the dependence of our future success on the general economy and its impact on the industries in which we invest;

 

the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives;

 

our expected financings and investments;

 

our ability to operate as a business development company (“BDC”) under the Investment Company Act of 1940 and a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, including the impact of changes in laws or regulations governing our operations;

 

the adequacy of our available liquidity, cash resources and working capital;

 

the timing of cash flows, if any, from the operations of our portfolio companies;

 

the ability of Sierra Crest Investment Management LLC (the “Adviser”) to locate suitable investments for us to monitor and administer our investments;

 

the ability of the Adviser to attract and retain highly talented professionals;

 

actual and potential conflicts of interest with the Adviser and its affiliates;

 

the effect of legal, tax, and regulatory changes on us and our portfolio companies;

 

the impact of a protracted decline in the liquidity of credit markets on our business;

 

the impact of fluctuations in interest rates on our business;

 

the valuation of our investments in portfolio companies, particularly those having no liquid trading market;

3


 

our ability to recover unrealized losses;

 

market conditions and our ability to access additional capital;

 

the duration and effects of the COVID-19 pandemic on us and our portfolio companies;

 

an economic downturn, including as a result of the impact of the COVID-19 pandemic, could have a material adverse effect on our portfolio companies’ results of operations and financial condition, which could lead to a loss on some or all of our investments in such portfolio companies and have a material adverse effect on our results of operations and financial condition; and

 

the timing, form and amount of any dividend distributions.

For a more detailed discussion of factors that could cause our actual results to differ from forward-looking statements contained in this Quarterly Report, please see the discussion in Part II, “Item 1A. Risk Factors” of this Quarterly Report, and in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 You should not place undue reliance on these forward-looking statements. The forward-looking statements made in this Quarterly Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date this Quarterly Report is filed with the SEC.

4


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

March 31,

2020

 

 

December 31,

2019

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

 

 

Short-term investments (cost: 2020 - $2,565,771; 2019 - $4,207,107)

 

$

2,565,771

 

 

$

4,207,107

 

Debt securities (amortized cost: 2020 - $219,388,095; 2019 - $194,686,364)

 

 

200,726,402

 

 

 

186,802,908

 

CLO Fund Securities managed by affiliates (amortized cost: 2020 - $44,560,217; 2019 - $45,099,076)

 

 

18,282,913

 

 

 

29,984,047

 

CLO Fund Securities managed by non-affiliates (amortized cost: 2020 - $1,494,665; 2019 - $1,519,641)

 

 

1,387,750

 

 

 

1,984,155

 

Equity securities (cost: 2020 - $20,619,993; 2019 - $22,160,993)

 

 

8,045,512

 

 

 

9,864,419

 

Asset Manager Affiliates (cost: 2020 - $17,791,230; 2019 - $17,791,230)

 

 

 

 

 

 

Joint Ventures (cost: 2020 - $53,091,172; 2019 - $48,594,539)

 

 

41,475,403

 

 

 

45,087,967

 

Derivatives (cost: 2020 - $30,609; 2019 - $30,609)

 

 

(59,073

)

 

 

(33,437

)

Total Investments at Fair Value (cost: 2020 - $359,541,752; 2019 - $334,089,559)

 

 

272,424,678

 

 

 

277,897,166

 

Cash

 

 

403,497

 

 

 

136,864

 

Restricted cash

 

 

4,728,007

 

 

 

4,967,491

 

Interest receivable

 

 

920,627

 

 

 

1,367,447

 

Receivable for unsettled trades

 

 

3,344,492

 

 

 

24,420,045

 

Due from affiliates

 

 

288,037

 

 

 

473,100

 

Other assets

 

 

1,201,211

 

 

 

1,112,150

 

Total Assets

 

$

283,310,549

 

 

$

310,374,263

 

LIABILITIES

 

 

 

 

 

 

 

 

6.125% Notes Due 2022 (net of offering costs of: 2020-$1,508,472; 2019 - $1,651,946)

 

$

75,326,027

 

 

$

75,755,253

 

Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of offering costs of: 2020-$1,372,255; 2019 - $1,462,364)

 

 

55,698,643

 

 

 

78,108,535

 

Payable for unsettled trades

 

 

26,571,709

 

 

 

 

Accounts payable and accrued expenses

 

 

1,502,532

 

 

 

1,386,981

 

Accrued interest payable

 

 

799,978

 

 

 

136,486

 

Due to affiliates

 

 

2,030,692

 

 

 

1,711,793

 

Management and incentive fees payable

 

 

1,011,356

 

 

 

1,076,645

 

Total Liabilities

 

 

162,940,937

 

 

 

158,175,693

 

COMMITMENTS AND CONTINGENCIES (NOTE 9)

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share, 100,000,000 common shares authorized; 44,920,731 issued, and 44,725,872 outstanding at March 31, 2020, and 45,024,535 issued, and 44,829,676 outstanding at December 31, 2019

 

 

447,259

 

 

 

448,297

 

Capital in excess of par value

 

 

451,268,171

 

 

 

451,353,379

 

Total distributable (loss) earnings

 

 

(331,345,818

)

 

 

(299,603,106

)

Total Stockholders' Equity

 

 

120,369,612

 

 

 

152,198,570

 

Total Liabilities and Stockholders' Equity

 

$

283,310,549

 

 

$

310,374,263

 

NET ASSET VALUE PER COMMON SHARE

 

$

2.69

 

 

$

3.40

 

 

See accompanying notes to consolidated financial statements.

5


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

Three Months Ended

March 31,

 

 

 

2020

 

 

2019

 

Investment Income:

 

 

 

 

 

 

 

 

Interest from investments in debt securities

 

$

4,579,782

 

 

$

2,936,796

 

Payment-in-kind investment income

 

 

309,369

 

 

 

2,022

 

Interest from short-term investments

 

 

15,279

 

 

 

35,669

 

Investment income on CLO Fund Securities managed by affiliates

 

 

1,073,494

 

 

 

132,446

 

Investment income on CLO Fund Securities managed by non-affiliates

 

 

117,243

 

 

 

1,681,274

 

Dividends from Asset Manager Affiliates

 

 

 

 

 

 

Investment income - Joint Ventures

 

 

1,577,136

 

 

 

950,000

 

Capital structuring service fees

 

 

81,904

 

 

 

61,203

 

Total investment income

 

 

7,754,207

 

 

 

5,799,410

 

Expenses:

 

 

 

 

 

 

 

 

Management fees

 

 

1,011,690

 

 

 

 

Performance-based incentive fees

 

 

102,006

 

 

 

 

Interest and amortization of debt issuance costs

 

 

2,350,071

 

 

 

1,800,926

 

Compensation

 

 

 

 

 

3,688,578

 

Professional fees

 

 

843,630

 

 

 

1,668,122

 

Insurance

 

 

123,750

 

 

 

88,651

 

Administrative services expense

 

 

461,000

 

 

 

 

Other general and administrative expenses

 

 

198,276

 

 

 

748,320

 

Total expenses

 

 

5,090,423

 

 

 

7,994,597

 

Management and performance-based incentive fees waived

 

 

(102,006

)

 

 

 

Net Expenses

 

 

4,988,417

 

 

 

7,994,597

 

Net Investment Income (Loss)

 

 

2,765,790

 

 

 

(2,195,187

)

Realized And Unrealized (Losses) Gains On Investments:

 

 

 

 

 

 

 

 

Net realized (losses) gains from investment transactions

 

 

(1,048,147

)

 

 

(13,349,430

)

Net change in unrealized (depreciation) appreciation on:

 

 

 

 

 

 

 

 

Debt securities

 

 

(10,778,237

)

 

 

1,899,864

 

Equity securities

 

 

(277,907

)

 

 

(5,051,031

)

CLO Fund Securities managed by affiliates

 

 

(11,162,275

)

 

 

(82,569

)

CLO Fund Securities managed by non-affiliates

 

 

(571,429

)

 

 

2,543,252

 

Asset Manager Affiliates investments

 

 

 

 

 

 

Joint Venture Investments

 

 

(8,109,197

)

 

 

5,317,529

 

Derivatives

 

 

(25,637

)

 

 

 

Total net change in unrealized appreciation (depreciation)

 

 

(30,924,682

)

 

 

4,627,045

 

Net realized and unrealized (depreciation) on investments

 

 

(31,972,829

)

 

 

(8,722,385

)

Realized gains on extinguishments of Debt

 

 

154,106

 

 

 

 

Net (Decrease) Increase In Stockholders’ Equity Resulting From Operations

 

$

(29,052,933

)

 

$

(10,917,572

)

Net (Decrease) Increase In Stockholders' Equity Resulting from Operations per Common Share:

 

 

 

 

 

 

 

 

Basic:

 

$

(0.65

)

 

$

(0.29

)

Diluted:

 

$

(0.65

)

 

$

(0.29

)

Net Investment (Loss) Income Per Common Share:

 

 

 

 

 

 

 

 

Basic:

 

$

0.06

 

 

$

(0.06

)

Diluted:

 

$

0.06

 

 

$

(0.06

)

Weighted Average Shares of Common Stock Outstanding—Basic

 

 

44,823,193

 

 

 

37,335,094

 

Weighted Average Shares of Common Stock Outstanding—Diluted

 

 

44,823,193

 

 

 

37,335,094

 

 

See accompanying notes to consolidated financial statements.

6


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS(1)

(unaudited)

 

 

 

For the Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

2,765,790

 

 

$

(2,195,187

)

Net realized (losses) gains from investment transactions

 

 

(1,048,147

)

 

 

(13,349,430

)

Realized gains from extinguishments of debt

 

 

154,106

 

 

 

 

Net change in unrealized appreciation on investments

 

 

(30,924,682

)

 

 

4,627,045

 

Net (decrease) increase in stockholders’ equity resulting from operations

 

 

(29,052,933

)

 

 

(10,917,572

)

 

 

 

 

 

 

 

 

 

Stockholder distributions:

 

 

(2,689,779

)

 

 

(3,732,836

)

 

 

 

 

 

 

 

 

 

Capital share transactions:

 

 

 

 

 

 

 

 

Issuance of common stock for:

 

 

 

 

 

 

 

 

Dividend reinvestment plan

 

 

37,084

 

 

 

56,489

 

Stock repurchase

 

 

(123,330

)

 

 

 

Stock based compensation

 

 

 

 

 

258,936

 

Net increase in net assets resulting from capital share transactions

 

 

(86,246

)

 

 

315,425

 

Net assets at beginning of period

 

 

152,198,570

 

 

 

158,021,011

 

Net assets at end of period

 

$

120,369,612

 

 

$

143,686,028

 

Net asset value per common share

 

$

2.69

 

 

$

3.85

 

Common shares outstanding at end of period

 

 

44,725,872

 

 

 

37,331,709

 

 

(1)

Refer to note 10 "Stockholders' Equity" for additional information on changes in components of Stockholders' Equity

See accompanying notes to consolidated financial statements.

7


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

For the Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net (decrease) increase in stockholders' equity resulting from operations

 

$

(29,052,933

)

 

$

(10,917,572

)

Adjustments to reconcile net (decrease) increase in stockholders' equity resulting from operations to net cash (used in) provided by in operations:

 

 

 

 

 

 

 

 

Net realized losses on investment transactions

 

 

1,048,147

 

 

 

13,349,430

 

Net change in unrealized appreciation from investments

 

 

30,924,682

 

 

 

(4,627,045

)

Purchases of investments

 

 

(47,942,983

)

 

 

(35,189,571

)

Proceeds from sales and redemptions of investments

 

 

23,453,568

 

 

 

19,050,340

 

Net accretion of investments

 

 

(1,951,807

)

 

 

(1,744,332

)

Amortization of debt issuance costs

 

 

234,925

 

 

 

227,366

 

Realized gains on extinguishments of debt

 

 

(154,106

)

 

 

 

Net amortization of operating lease

 

 

 

 

 

3,098

 

Payment-in-kind interest income

 

 

(59,119

)

 

 

(2,022

)

Stock-based compensation

 

 

 

 

 

258,936

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Increase (decrease) in payable for open trades

 

 

26,571,709

 

 

 

420,182

 

(Increase) decrease in receivable for open trades

 

 

21,075,553

 

 

 

 

Decrease (increase) in interest and dividends receivable

 

 

446,820

 

 

 

465,814

 

Increase (decrease) in accrued interest payable

 

 

663,492

 

 

 

3,142

 

(Increase) decrease in other assets

 

 

(89,061

)

 

 

(89,105

)

Decrease (increase) in due from affiliates

 

 

185,063

 

 

 

79,532

 

Increase (decrease) in management and incentive fees payable

 

 

(65,289

)

 

 

 

(Decrease) increase in due to affiliates

 

 

318,899

 

 

 

(115,825

)

Decrease (increase) in accounts payable and accrued expenses

 

 

115,551

 

 

 

681,979

 

Net cash provided by (used in) operating activities

 

 

25,723,111

 

 

 

(18,145,653

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Debt issuance costs

 

 

(1,342

)

 

 

(263,450

)

Stock repurchase program

 

 

(123,330

)

 

 

 

Distributions to stockholders

 

 

(2,652,695

)

 

 

(3,676,349

)

Repurchase of 6.125% Notes Due 2022

 

 

(418,594

)

 

 

 

Borrowings from Revolving Credit Facilities

 

 

6,000,000

 

 

 

23,000,000

 

Repayment of  Revolving Credit Facilities

 

 

(28,500,000

)

 

 

(5,485,002

)

Net cash (used in) provided by financing activities

 

 

(25,695,962

)

 

 

13,575,199

 

CHANGE IN CASH AND RESTRICTED CASH

 

 

27,149

 

 

 

(4,570,454

)

CASH AND RESTRICTED CASH, BEGINNING OF PERIOD

 

 

5,104,355

 

 

 

9,324,466

 

CASH AND RESTRICTED CASH, END OF PERIOD

 

$

5,131,504

 

 

$

4,754,012

 

Amounts per balance sheet:

 

 

 

 

 

 

 

 

Cash

 

$

403,497

 

 

$

3,288,010

 

Restricted cash

 

 

4,728,007

 

 

 

1,466,002

 

Total Cash and Restricted cash

 

$

5,131,504

 

 

$

4,754,012

 

Supplemental Information:

 

 

 

 

 

 

 

 

Interest paid during the period

 

$

1,440,865

 

 

$

1,570,418

 

Dividends paid during the period under the dividend reinvestment plan

 

$

37,084

 

 

$

56,489

 

 

See accompanying notes to consolidated financial statements.

8


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2020

(unaudited)

Debt Securities Portfolio

 

Portfolio Company /

Principal Business

 

Investment

Interest Rate¹ / Maturity15

 

Initial

Acquisition

Date

 

Principal

 

 

Amortized

Cost

 

 

Fair Value2

 

Acrisure, LLC

     Banking, Finance, Insurance & Real Estate

(8)(14)

Senior Secured Loan — 2020 Term Loan (First Lien)

5.2% Cash, 3 month LIBOR(1.71%) + 3.50% , Due 2/27

 

3/20/2020

 

$

5,500,000

 

 

$

4,323,750

 

 

$

4,826,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Lighting Technologies, Inc.

     Consumer goods: Durable

(5)(8)(13)

Junior Secured Loan — Second Lien Notes

8.9% Cash, 10.0% PIK, 3 month LIBOR(1.87%) + 7.00%; LIBOR Floor 1.00% , Due 10/23

 

6/13/2012

 

 

1,278,885

 

 

 

1,098,456

 

 

 

2,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Capital Holdings LLC

     Banking, Finance, Insurance & Real Estate

(8)(13)(14)(23)

Senior Secured Loan — Term Loan

5.0% Cash, 8.0% PIK, 3 month LIBOR + 5.00% , Due 1/25

 

2/14/2020

 

 

2,327,500

 

 

 

2,321,559

 

 

 

2,327,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Capital Holdings LLC

     Banking, Finance, Insurance & Real Estate

(8)(13)(23)

Senior Secured Loan — Delayed Draw Term Loan

5.0% Cash, 8.0% PIK, Due 1/25

 

2/14/2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Akumin Corp.

     Healthcare & Pharmaceuticals

(8)(13)(14)

Senior Secured Loan — Initial Term B Loan

7.0% Cash, 1 month LIBOR(1.00%) + 6.00%; LIBOR Floor 1.00% , Due 5/24

 

5/31/2019

 

 

2,233,125

 

 

 

2,195,966

 

 

 

2,081,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allied Universal Holdco LLC (f/k/a USAGM Holdco, LLC)

     Services: Business

(8)(14)

Senior Secured Loan — Initial Term Loan

5.2% Cash, 1 month LIBOR(0.99%) + 4.25% , Due 7/26

 

3/23/2020

 

 

6,982,500

 

 

 

5,675,775

 

 

 

6,493,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthem Sports & Entertainment Inc.

     Media: Broadcasting & Subscription

(8)(13)(14)(23)

Senior Secured Loan — Term Loan

8.2% Cash, 2.8% PIK, 3 month LIBOR(1.45%) + 6.75%; LIBOR Floor 1.00% , Due 9/24

 

9/9/2019

 

 

4,193,621

 

 

 

4,052,587

 

 

 

3,988,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthem Sports & Entertainment Inc.

     Media: Broadcasting & Subscription

(8)(13)(23)

Senior Secured Loan — Revolving Loan

11.0% Cash, 3 month LIBOR(1.45%) + 9.50%; LIBOR Floor 1.00% , Due 9/24

 

9/9/2019

 

 

416,667

 

 

 

379,634

 

 

 

396,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asurion, LLC (fka Asurion Corporation)

     Banking, Finance, Insurance & Real Estate

(8)(14)

Senior Secured Loan — Replacement B-6 Term Loan

5.2% Cash, 3 month LIBOR(1.71%) + 3.50% , Due 11/23

 

3/20/2020

 

 

997,371

 

 

 

837,792

 

 

 

968,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BMC Acquisition, Inc. (aka BenefitMall)

     Banking, Finance, Insurance & Real Estate

(8)(13)(14)

Senior Secured Loan — Initial Term Loan

7.2% Cash, 6 month LIBOR(1.93%) + 5.25%; LIBOR Floor 1.00% , Due 12/24

 

1/2/2018

 

 

2,932,500

 

 

 

2,931,329

 

 

 

2,733,970

 

 

9


 

Portfolio Company /

Principal Business

 

Investment

Interest Rate¹ / Maturity15

 

Initial

Acquisition

Date

 

Principal

 

 

Amortized

Cost

 

 

Fair Value2

 

BW NHHC Holdco Inc.

     Healthcare & Pharmaceuticals

(8)(14)

Senior Secured Loan — Initial Term Loan (First Lien)

6.6% Cash, 3 month LIBOR(1.62%) + 5.00% , Due 5/25

 

5/16/2018

 

 

1,965,000

 

 

 

1,943,379

 

 

 

1,208,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carestream Health, Inc.

     Healthcare & Pharmaceuticals

(8)(14)

Junior Secured Loan — Extended Term Loan (Second Lien)

11.6% Cash, 6 month LIBOR(1.07%) + 10.50%; LIBOR Floor 1.00% , Due 6/21

 

10/7/2014

 

 

1,514,734

 

 

 

1,507,511

 

 

 

1,306,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Child Development Schools, Inc.

     Services: Consumer

(8)(13)(14)

Senior Secured Loan — Term Loan

5.7% Cash, 3 month LIBOR(1.45%) + 4.25%; LIBOR Floor 1.00% , Due 5/23

 

6/6/2018

 

 

4,451,705

 

 

 

4,444,670

 

 

 

4,316,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coinamatic Canada Inc. (fka 8433143 Canada Limited )

     Consumer goods: Durable

(3)(13)(14)

Junior Secured Loan — Initial Canadian Term Loan (Second Lien)

8.0% Cash, 1 month LIBOR(1.00%) + 7.00%; LIBOR Floor 1.00% , Due 5/23

 

12/18/2019

 

 

521,646

 

 

 

449,645

 

 

 

476,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colibri Group, LLC

     Services: Business

(8)(13)(14)(20)(23)

Senior Secured Loan — Last Out Term Loan

9.0% Cash, 1 month LIBOR(1.00%) + 7.97% , Due 5/25

 

3/31/2020

 

 

7,676,648

 

 

 

7,619,073

 

 

 

7,620,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Community Care Health Network, Inc. (aka Matrix Medical Network)

     Healthcare & Pharmaceuticals

(8)(13)(14)

Senior Secured Loan — Closing Date Term Loan

5.7% Cash, 1 month LIBOR(0.99%) + 4.75%; LIBOR Floor 1.00% , Due 2/25

 

2/9/2018

 

 

1,965,000

 

 

 

1,961,570

 

 

 

1,767,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSM Bakery Solutions Limited (fka CSM Bakery Supplies Limited)

     Beverage, Food and Tobacco

(8)(14)

Senior Secured Loan — Term Loan (First Lien)

5.4% Cash, 3 month LIBOR(1.35%) + 4.00%; LIBOR Floor 1.00% , Due 7/20

 

2/7/2020

 

 

1,250,000

 

 

 

1,225,000

 

 

 

1,054,125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSM Bakery Solutions Limited (fka CSM Bakery Supplies Limited)

     Beverage, Food and Tobacco

(8)(14)

Junior Secured Loan — Term Loan (Second Lien)

9.6% Cash, 3 month LIBOR(1.87%) + 7.75%; LIBOR Floor 1.00% , Due 7/21

 

5/23/2013

 

 

3,000,000

 

 

 

3,003,160

 

 

 

2,340,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dental Implant Holdings, LLC

     Healthcare & Pharmaceuticals

(8)(13)(14)(20)

Senior Secured Loan — Term Loan

8.1% Cash, 1 month LIBOR(1.61%) + 6.50%; LIBOR Floor 1.00% , Due 1/23

 

12/18/2019

 

 

500,000

 

 

 

451,969

 

 

 

429,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dental Implant Holdings, LLC

     Healthcare & Pharmaceuticals

(8)(13)

Senior Secured Loan — Revolving Loan

7.5% Cash, 1 month LIBOR(1.00%) + 6.50%; LIBOR Floor 1.00% , Due 1/23

 

12/18/2019

 

 

1,718,750

 

 

 

1,718,750

 

 

 

1,476,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digitran Innovations B.V. (Pomeroy Solutions Holding Company, Inc.)

     High Tech Industries

(8)(13)

Senior Secured Loan — Incremental Tranche 2 Term Loan

11.0% Cash, 1 month LIBOR(1.50%) + 9.50% , Due 7/24

 

12/10/2018

 

 

286,430

 

 

 

281,213

 

 

 

277,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digitran Innovations B.V. (Pomeroy Solutions Holding Company, Inc.)

     High Tech Industries

(8)(13)

Senior Secured Loan — Incremental Tranche A-1 TL

11.0% Cash, 1 month LIBOR(1.50%) + 9.50% , Due 7/24

 

12/10/2018

 

 

146,079

 

 

 

143,490

 

 

 

141,449

 

 

10


 

Portfolio Company /

Principal Business

 

Investment

Interest Rate¹ / Maturity15

 

Initial

Acquisition

Date

 

Principal

 

 

Amortized

Cost

 

 

Fair Value2

 

Digitran Innovations B.V. (Pomeroy Solutions Holding Company, Inc.)

     High Tech Industries

(8)(13)

Senior Secured Loan — Incremental Tranche A-3 Term Loan

11.0% Cash, 1 month LIBOR(1.50%) + 9.50% , Due 7/24

 

12/10/2018

 

 

47,738

 

 

 

46,855

 

 

 

46,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digitran Innovations B.V. (Pomeroy Solutions Holding Company, Inc.)

     High Tech Industries

(8)(13)

Senior Secured Loan — Incremental Tranche A-6 Term Loan

11.0% Cash, 1 month LIBOR(1.50%) + 9.50% , Due 7/24

 

12/10/2018

 

 

305,427

 

 

 

299,696

 

 

 

295,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digitran Innovations B.V. (Pomeroy Solutions Holding Company, Inc.)

     High Tech Industries

(8)(13)

Senior Secured Loan — Incremental Tranche A-7 Term Loan

11.0% Cash, 1 month LIBOR(1.50%) + 9.50% , Due 7/24

 

1/23/2020

 

 

91,137

 

 

 

89,391

 

 

 

88,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digitran Innovations B.V. (Pomeroy Solutions Holding Company, Inc.)

     High Tech Industries

(8)(13)

Senior Secured Loan — Incremental Tranche A-8 Term Loan

11.0% Cash, 1 month LIBOR(1.50%) + 9.50% , Due 7/24

 

2/20/2020

 

 

34,083

 

 

 

34,083

 

 

 

33,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digitran Innovations B.V. (Pomeroy Solutions Holding Company, Inc.)

     High Tech Industries

(5)(8)(13)

Senior Secured Loan — Term Loan

11.5% Cash, 3 month LIBOR(1.50%) + 10.00%; LIBOR Floor 1.50% , Due 7/24

 

12/10/2018

 

 

4,962,406

 

 

 

4,919,958

 

 

 

2,341,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Drilling Info Holdings, Inc.

     High Tech Industries

(8)(13)(14)

Senior Secured Loan — 2019 Delayed Draw Term Loan (First Lien)

5.2% Cash, 1 month LIBOR(0.99%) + 4.25% , Due 7/25

 

6/27/2019

 

 

0

 

 

 

(1,600

)

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Drilling Info Holdings, Inc.

     High Tech Industries

(8)(13)(14)

Senior Secured Loan — 2020 Term Loan (First Lien)

5.5% Cash, 1 month LIBOR(0.99%) + 4.50% , Due 7/25

 

2/14/2020

 

 

1,000,000

 

 

 

995,118

 

 

 

932,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Drilling Info Holdings, Inc.

     High Tech Industries

(8)(13)(14)

Senior Secured Loan — Initial Term Loan (First Lien)

5.2% Cash, 1 month LIBOR(0.99%) + 4.25% , Due 7/25

 

6/27/2019