10-Q 1 bkcc-10q_20190331.htm 10-Q bkcc-10q_20190331.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended March 31, 2019

OR

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

For the transition period from                  to                 

Commission file number 814-00712

BLACKROCK CAPITAL INVESTMENT CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

 

Delaware

20-2725151

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

 

 

40 East 52nd Street, New York, NY

10022

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: 212-810-5800

 

      

 

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 the 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 13(a) of the Exchange Act.    

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

The number of shares of the Registrant’s common stock, $.001 par value per share, outstanding at May 1, 2019 was 68,836,255.

 

 

 


 

BLACKROCK CAPITAL INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2019

Table of Contents

 

 

INDEX

PAGE NO.

 

 

 

PART I.

FINANCIAL INFORMATION

 

 

 

 

Item 1.

CONSOLIDATED FINANCIAL STATEMENTS

3

 

 

 

 

Consolidated Statements of Assets and Liabilities as of March 31, 2019 and December 31,
2018 (unaudited)

3

 

 

 

 

Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018 (unaudited)

4

 

 

 

 

Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2019 and
2018 (unaudited)

5

 

 

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and
2018 (unaudited)

6

 

 

 

 

Consolidated Schedules of Investments as of March 31, 2019 and December 31, 2018 (unaudited)

7

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

21

 

 

 

Item 2.

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

44

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

53

 

 

 

Item 4.

Controls and Procedures

53

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

54

 

 

 

Item 1A.

Risk Factors

54

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

54

 

 

 

Item 3.

Defaults Upon Senior Securities

55

 

 

 

Item 4.

Mine Safety Disclosures

55

 

 

 

Item 5.

Other Information

55

 

 

 

Item 6.

Exhibits

56

 

 

SIGNATURES

57

 

 

2


 

PART I. FINANCIAL INFORMATION

In this Quarterly Report, “Company”, “we”, “us” and “our” refer to BlackRock Capital Investment Corporation unless the context states otherwise.

Item 1. Consolidated Financial Statements

BlackRock Capital Investment Corporation

Consolidated Statements of Assets and Liabilities

(Unaudited)

 

 

 

March 31,

2019

 

 

December 31,

2018

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost of $253,938,127 and $233,331,450)

 

$

218,148,636

 

 

$

200,569,644

 

Non-controlled, affiliated investments (cost of $114,252,403 and $130,892,674)

 

 

99,991,510

 

 

 

111,727,234

 

Controlled investments (cost of $387,251,367 and $388,870,375)

 

 

362,234,127

 

 

 

359,356,068

 

Total investments at fair value (cost of $755,441,897 and $753,094,499)

 

 

680,374,273

 

 

 

671,652,946

 

Cash and cash equivalents

 

 

27,107,015

 

 

 

13,497,320

 

Receivable for investments sold

 

 

2,002,968

 

 

 

1,691,077

 

Interest, dividends and fees receivable

 

 

9,945,510

 

 

 

4,084,001

 

Prepaid expenses and other assets

 

 

2,368,966

 

 

 

2,707,036

 

Total Assets

 

$

721,798,732

 

 

$

693,632,380

 

Liabilities

 

 

 

 

 

 

 

 

Debt (net of deferred financing costs of $2,997,396 and $3,227,965)

 

$

208,835,348

 

 

$

186,397,728

 

Interest and credit facility fees payable

 

 

2,576,255

 

 

 

722,841

 

Distributions payable

 

 

12,390,525

 

 

 

12,552,212

 

Base management fees payable

 

 

2,923,149

 

 

 

3,494,520

 

Payable for investments purchased

 

 

 

 

 

989,460

 

Accrued administrative services

 

 

739,812

 

 

 

376,507

 

Other accrued expenses and payables

 

 

2,204,539

 

 

 

2,078,958

 

Total Liabilities

 

 

229,669,628

 

 

 

206,612,226

 

Commitments and Contingencies (See Note 9)

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

 

 

 

 

Common stock, par value $.001 per share, 200,000,000 common shares authorized, 77,861,287 and 77,861,287 issued and 68,836,255 and 68,921,798 outstanding

 

77,861

 

 

 

77,861

 

Paid-in capital in excess of par

 

 

853,248,794

 

 

 

853,248,794

 

Distributable earnings (losses)

 

 

(298,528,296

)

 

 

(304,106,473

)

Treasury stock at cost, 9,025,032 and 8,939,489 shares held

 

 

(62,669,255

)

 

 

(62,200,028

)

Total Net Assets

 

 

492,129,104

 

 

 

487,020,154

 

Total Liabilities and Net Assets

 

$

721,798,732

 

 

$

693,632,380

 

Net Asset Value Per Share

 

$

7.15

 

 

$

7.07

 

 

The accompanying notes are an integral part of these consolidated financial statements.

3


 

BlackRock Capital Investment Corporation

Consolidated Statements of Operations

(Unaudited)

 

 

 

Three months ended

 

 

 

March 31,

2019

 

 

March 31,

2018

 

Investment Income:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

Cash interest income

 

$

5,942,016

 

 

$

7,144,027

 

PIK interest income

 

 

240,184

 

 

 

 

Fee income

 

 

475,407

 

 

 

465,206

 

Total investment income from non-controlled, non-affiliated investments

 

 

6,657,607

 

 

 

7,609,233

 

Non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

Cash interest income

 

 

1,222,251

 

 

 

2,214,613

 

PIK interest income

 

 

 

 

 

690,960

 

PIK dividend income

 

 

220,480

 

 

 

189,026

 

Fee income

 

 

 

 

 

35,000

 

Total investment income from non-controlled, affiliated investments

 

 

1,442,731

 

 

 

3,129,599

 

Controlled investments:

 

 

 

 

 

 

 

 

Cash interest income

 

 

6,900,738

 

 

 

5,085,705

 

PIK interest income

 

 

 

 

 

766,466

 

Cash dividend income

 

 

4,191,703

 

 

 

3,126,861

 

PIK dividend income

 

 

 

 

 

731,516

 

Fee income

 

 

121,862

 

 

 

387,058

 

Total investment income from controlled investments

 

 

11,214,303

 

 

 

10,097,606

 

Total investment income

 

 

19,314,641

 

 

 

20,836,438

 

Expenses:

 

 

 

 

 

 

 

 

Base management fees

 

 

2,923,149

 

 

 

3,312,369

 

Incentive management fees

 

 

2,280,836

 

 

 

1,735,195

 

Interest and credit facility fees

 

 

3,392,434

 

 

 

3,708,958

 

Professional fees

 

 

473,043

 

 

 

733,164

 

Administrative services

 

 

363,305

 

 

 

553,764

 

Director fees

 

 

193,000

 

 

 

187,000

 

Investment advisor expenses

 

 

87,500

 

 

 

87,500

 

Other

 

 

478,029

 

 

 

630,737

 

Total expenses, before incentive management fee waiver

 

 

10,191,296

 

 

 

10,948,687

 

Incentive management fee waiver (See Note 3)

 

 

(2,280,836

)

 

 

(1,735,195

)

Expenses, net of incentive management fee waiver

 

 

7,910,460

 

 

 

9,213,492

 

Net Investment Income

 

 

11,404,181

 

 

 

11,622,946

 

Realized and Unrealized Gain (Loss):

 

 

 

 

 

 

 

 

Net realized gain (loss):

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

325,489

 

 

 

(50,515,956

)

Non-controlled, affiliated investments

 

 

(269,226

)

 

 

 

Controlled investments

 

 

 

 

 

(26,118,432

)

Net realized gain (loss)

 

 

56,263

 

 

 

(76,634,388

)

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(2,684,053

)

 

 

43,690,517

 

Non-controlled, affiliated investments

 

 

4,560,914

 

 

 

1,422,575

 

Controlled investments

 

 

4,497,067

 

 

 

19,156,544

 

Foreign currency translation

 

 

134,330

 

 

 

(173,911

)

Net change in unrealized appreciation (depreciation)

 

 

6,508,258

 

 

 

64,095,725

 

Net realized and unrealized gain (loss)

 

 

6,564,521

 

 

 

(12,538,663

)

Net Increase (Decrease) in Net Assets Resulting from Operations

 

$

17,968,702

 

 

$

(915,717

)

Net Investment Income Per Share—basic

 

$

0.17

 

 

$

0.16

 

Earnings (Loss) Per Share—basic

 

$

0.26

 

 

$

(0.01

)

Average Shares Outstanding—basic

 

 

68,837,612

 

 

 

72,991,828

 

Net Investment Income Per Share—diluted

 

$

0.16

 

 

$

0.15

 

Earnings (Loss) Per Share—diluted

 

$

0.24

 

 

$

(0.01

)

Average Shares Outstanding—diluted (See Note 4)

 

 

85,831,349

 

 

 

89,985,565

 

Distributions Declared Per Share

 

$

0.18

 

 

$

0.18

 

 

The accompanying notes are an integral part of these consolidated financial statements.

4


 

BlackRock Capital Investment Corporation

Consolidated Statements of Changes in Net Assets

(Unaudited)

 

 

 

Three months ended

 

 

 

March 31, 2019

 

 

March 31, 2018

 

Net Increase (Decrease) in Net Assets Resulting from Operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

11,404,181

 

 

$

11,622,946

 

Net realized gain (loss)

 

 

56,263

 

 

 

(76,634,388

)

Net change in unrealized appreciation (depreciation)

 

 

6,508,258

 

 

 

64,095,725

 

Net increase (decrease) in net assets resulting from operations

 

 

17,968,702

 

 

 

(915,717

)

Distributions to Stockholders from(1):

 

 

 

 

 

 

 

 

Net investment income

 

 

(12,390,525

)

 

 

(13,150,684

)

Capital Share Transactions:

 

 

 

 

 

 

 

 

Share issuance - distribution reinvestment

 

 

 

 

 

816,549

 

Purchases of treasury stock

 

 

(469,227

)

 

 

(4,785,155

)

Net increase (decrease) in net assets resulting from capital share transactions

 

 

(469,227

)

 

 

(3,968,606

)

Total Increase (Decrease) in Net Assets

 

 

5,108,950

 

 

 

(18,035,007

)

Net assets at beginning of period

 

 

487,020,154

 

 

 

571,099,932

 

Net assets at end of period

 

$

492,129,104

 

 

$

553,064,925

 

Capital Share Activity:

 

 

 

 

 

 

 

 

Shares issued from reinvestment of distributions

 

 

 

 

 

137,523

 

Purchases of treasury stock

 

 

(85,543

)

 

 

(799,803

)

Net increase (decrease) in shares outstanding

 

 

(85,543

)

 

 

(662,280

)

 

(1)

Sources of distribution to stockholders will be adjusted on an annual basis, if necessary, and calculated in accordance with federal income tax regulations.

 

The accompanying notes are an integral part of these consolidated financial statements.

5


 

BlackRock Capital Investment Corporation

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Three months ended

 

 

 

March 31, 2019

 

 

March 31, 2018

 

Operating Activities:

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

17,968,702

 

 

$

(915,717

)

Adjustments to reconcile net increase (decrease) in net assets resulting from operations:

 

 

 

 

 

 

 

 

PIK interest, dividends and fees

 

 

(460,664

)

 

 

(2,377,968

)

Net amortization on investments

 

 

(164,987

)

 

 

(125,986

)

Amortization of debt issuance costs and discount

 

 

602,286

 

 

 

441,630

 

Net change in unrealized (appreciation) depreciation on investments

 

 

(6,373,928

)

 

 

(64,269,636

)

Net change in unrealized (appreciation) depreciation on foreign currency translation

 

 

(134,330

)

 

 

173,911

 

Net realized (gain) loss on investments

 

 

(56,263

)

 

 

76,634,388

 

Changes in operating assets:

 

 

 

 

 

 

 

 

Purchase of investments

 

 

(57,790,703

)

 

 

(142,614,716

)

Proceeds from disposition of investments

 

 

55,679,170

 

 

 

17,187,184

 

Change in interest, dividends and fees receivable

 

 

(5,621,325

)

 

 

397,619

 

Change in prepaid expenses and other assets

 

 

173,405

 

 

 

295,924

 

Changes in operating liabilities:

 

 

 

 

 

 

 

 

Change in payable for investments purchased

 

 

(989,460

)

 

 

274,856

 

Change in interest and credit facility fees payable

 

 

1,853,414

 

 

 

1,001,321

 

Change in base management fees payable

 

 

(571,371

)

 

 

(422,286

)

Change in accrued administrative services

 

 

363,305

 

 

 

438,769

 

Change in other accrued expenses and payables

 

 

153,885

 

 

 

567,143

 

Net cash provided by (used in) operating activities

 

 

4,631,136

 

 

 

(113,313,564

)

Financing Activities:

 

 

 

 

 

 

 

 

Distributions paid in cash

 

 

(12,552,214

)

 

 

(12,336,375

)

Proceeds from debt

 

 

55,000,000

 

 

 

170,031,067

 

Repayments of debt

 

 

(33,000,000

)

 

 

(67,041,000

)

Purchase of treasury stock

 

 

(469,227

)

 

 

(4,785,155

)

Net cash provided by financing activities

 

 

8,978,559

 

 

 

85,868,537

 

Net increase (decrease) in cash and cash equivalents

 

 

13,609,695

 

 

 

(27,445,027

)

Cash and cash equivalents, beginning of period

 

 

13,497,320

 

 

 

29,014,645

 

Cash and cash equivalents, end of period

 

$

27,107,015

 

 

$

1,569,618

 

Supplemental disclosure of cash flow information and non-cash financing activities:

 

 

 

 

 

 

 

 

Cash paid during period for:

 

 

 

 

 

 

 

 

Interest

 

$

622,776

 

 

$

1,695,057

 

Taxes

 

$

6,395

 

 

$

56,464

 

Share issuance — distribution reinvestment

 

$

 

 

$

816,549

 

 

The accompanying notes are an integral part of these consolidated financial statements.

6


 

BlackRock Capital Investment Corporation

Consolidated Schedules of Investments

March 31, 2019

(Unaudited)

 

Portfolio Company(r)

 

Industry(t)

 

 

 

Interest Rate

 

 

Maturity

 

Principal

Amount or

Number of

Shares/Units

 

 

Cost(a)

 

 

Fair

Value(b)

 

Senior Secured Notes—4.81%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Lighting Technologies, Inc., Second Lien(d)(f)(j)(u)

 

Capital Equipment

 

 

19.80% (L + 1700,  1.00% Floor PIK)

 

 

10/4/23

 

$

7,038,104

 

 

$

2,181,306

 

 

$

703,810

 

AGY Holding Corp., Second Lien(g)(j)

 

Chemicals, Plastics, & Rubber

 

 

 

11.00%

 

 

11/15/20

 

 

22,959,438

 

 

 

22,883,567

 

 

 

22,959,438

 

Total Senior Secured Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,064,873

 

 

 

23,663,248

 

Unsecured Debt—23.69%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CB-HDT Holdings, Inc.(d)(j)(x)

 

Aerospace & Defense

 

 

 

12.00% PIK

 

 

12/15/19

 

 

8,117,338

 

 

 

8,117,338

 

 

 

8,117,338

 

Gordon Brothers Finance Company(g)(p)

 

Finance

 

 

 

13.48% (L + 1100, 1.00% Floor)

 

 

10/31/21

 

 

108,461,861

 

 

 

108,461,861

 

 

 

108,461,860

 

Total Unsecured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

116,579,199

 

 

 

116,579,198

 

Subordinated Debt—8.13%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Boston Construction Holdings, LLC(d)(g)(k)(v)

 

Finance

 

 

 

12.00%

 

 

2/23/23

 

 

40,000,000

 

 

 

40,000,000

 

 

 

40,000,000

 

Total Subordinated Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40,000,000

 

 

 

40,000,000

 

Senior Secured Loans—59.79%(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Lighting Technologies, Inc., First Lien(f)

 

Capital Equipment

 

 

 

10.30% (L + 750, 1.00% Floor)

 

 

10/4/22

 

 

5,128,083

 

 

 

5,055,758

 

 

 

5,128,083

 

AGY Holding Corp., First Lien(g)

 

Chemicals, Plastics, & Rubber

 

 

 

12.00%

 

 

9/15/20

 

 

24,021,390

 

 

 

24,021,390

 

 

 

24,021,390

 

CareATC, Inc., First Lien(v)

 

Healthcare & Pharmaceuticals

 

 

 

9.84% (L + 725, 1.00% Floor)

 

 

3/14/24

 

 

4,733,036

 

 

 

4,639,256

 

 

 

4,638,376

 

FinancialForce.com, First Lien(v)

 

Services: Business

 

 

 

9.38% (L + 675)

 

 

2/1/24

 

 

7,500,000

 

 

 

7,306,170

 

 

 

7,306,170

 

MBS OpCo LLC, First Lien

 

Services: Business

 

 

 

11.80% (L + 900, 1.00% Floor)

 

 

12/29/22

 

 

14,812,500

 

 

 

14,812,500

 

 

 

14,664,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

7


 

BlackRock Capital Investment Corporation

Consolidated Schedules of Investments—(Continued)

March 31, 2019  

(Unaudited)

 

Portfolio Company(r)

 

Industry(t)

 

Interest Rate

 

 

Maturity

 

Principal

Amount or

Number of

Shares/Units

 

 

Cost(a)

 

 

Fair

Value(b)

 

Midwest Physician Administrative Services, LLC, Second Lien(s)

 

Healthcare & Pharmaceuticals

 

9.49% (L + 700, 0.75% Floor)

 

 

8/15/25

 

$

15,000,000

 

 

$

14,880,195

 

 

$

14,512,500

 

NorthStar Financial Services Group, LLC et al, Second Lien

 

Services: Business

 

10.08% (L + 750, 0.75% Floor)

 

 

5/25/26

 

 

11,040,744

 

 

 

10,991,363

 

 

 

10,819,929

 

Outcomes Group Holdings, Inc., Second Lien(s)

 

Services: Business

 

10.00% (L + 750)

 

 

10/26/26

 

 

15,000,000

 

 

 

14,964,369

 

 

 

14,850,000

 

Paragon Films, Inc., Second Lien

 

Containers, Packaging, & Glass

 

10.99% (L + 850, 1.00% Floor)

 

 

3/29/26

 

 

21,000,000

 

 

 

20,580,487

 

 

 

20,580,487

 

PharmaLogic Holdings Corp., Second Lien(h)(k)(v)

 

Healthcare & Pharmaceuticals

 

10.50% (L + 800)

 

 

12/11/23

 

 

6,409,565

 

 

 

6,382,094

 

 

 

6,377,518

 

Red Apple Stores Inc., Second Lien(g)(h)(k)

 

Retail

 

10.00%

 

 

7/24/20

 

 

23,050,000

 

 

 

23,050,000

 

 

 

17,979,000

 

St. George Warehousing & Trucking Co. of California, Inc., First Lien

 

Transportation: Cargo

 

11.85% (L + 925, 1.00% Floor)

 

 

4/28/22

 

 

32,530,635

 

 

 

32,530,635

 

 

 

29,277,571

 

St. George Warehousing & Trucking Co. of California, Inc., Delayed Draw Term Loan

 

Transportation: Cargo

 

11.85% (L + 925, 1.00% Floor)

 

 

4/28/22

 

 

6,667,022

 

 

 

6,667,022

 

 

 

6,000,320

 

Sur La Table, Inc., First Lien

 

Retail

 

12.00%

 

 

7/28/20

 

 

30,000,000

 

 

 

30,000,000

 

 

 

29,850,000

 

United PF Holdings, LLC, First Lien

 

Services: Consumer

 

8.50% (L + 600, 1.00% Floor)

 

 

11/2/21

 

 

19,222,246

 

 

 

19,222,246

 

 

 

18,933,913

 

United PF Holdings, LLC, Delayed Draw Term Loan(v)

 

Services: Consumer

 

8.50% (L + 600, 1.00% Floor)

 

 

11/2/21

 

 

3,271,538

 

 

 

3,271,538

 

 

 

3,222,465

 

Vertellus Holdings LLC, First Lien(f)

 

Chemicals, Plastics, & Rubber

 

9.16% (L + 675, 1.00% Floor)

 

 

8/2/21

 

 

22,461,298

 

 

 

22,461,298

 

 

 

22,461,298

 

Vertellus Holdings LLC, Second Lien(f)

 

Chemicals, Plastics, & Rubber

 

14.41% (L + 1200, 1.00% Floor)

 

 

10/29/21

 

 

15,109,890

 

 

 

15,109,890

 

 

 

14,958,791

 

Westmoreland Resource Partners, LP (Oxford Mining Company, LLC), First Lien(d)(u)(w)

 

Metals & Mining

 

16.15% (L + 1350, 0.75% Floor PIK)

 

 

12/31/18

 

 

28,601,196

 

 

 

26,618,276

 

 

 

4,433,185

 

Zest Acquisition Corp., Second Lien

 

Healthcare & Pharmaceuticals

 

9.99% (L + 750, 1.00% Floor)

 

 

3/14/26

 

 

25,000,000

 

 

 

24,781,411

 

 

 

24,250,000

 

Total Senior Secured Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

327,345,898

 

 

 

294,265,371

 

Preferred Stock—9.44%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Insurance Inc.(d)(f)(j)

 

Insurance

 

8.00% PIK

 

 

 

 

 

750,000

 

 

 

11,397,599

 

 

 

9,210,000

 

Gordon Brothers Finance Company(g)(p)

 

Finance

 

13.50%

 

 

 

 

 

34,285

 

 

 

34,284,750

 

 

 

34,284,750

 

KAGY Holding Company, Inc. (AGY Holding Corp.)(d)(g)(u)

 

Chemicals, Plastics, & Rubber

 

20.00% PIK

 

 

 

 

 

22,960

 

 

 

11,053,124

 

 

 

2,964,509

 

Red Apple Stores Inc.(c)(g)(h)(k)

 

Retail

 

 

 

 

 

 

 

 

6,806,383

 

 

 

 

 

 

 

Total Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

56,735,473

 

 

 

46,459,259

 

 

The accompanying notes are an integral part of these consolidated financial statements.

8


 

BlackRock Capital Investment Corporation

Consolidated Schedules of Investments—(Continued)

March 31, 2019  

(Unaudited)

 

Portfolio Company(r)

 

Industry(t)

 

Interest Rate

 

Maturity

 

Principal

Amount or

Number of

Shares/Units

 

 

Cost(a)

 

 

Fair

Value(b)

 

Common Stock—2.34%(c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Lighting Technologies, Inc.(f)

 

Capital Equipment

 

 

 

 

 

 

149,717

 

 

$

 

 

$

 

Gordon Brothers Finance Company(g)(p)

 

Finance

 

 

 

 

 

 

10,612

 

 

 

10,611,548

 

 

 

10,611,548

 

KAGY Holding Company, Inc. (AGY Holding Corp.)(g)

 

Chemicals, Plastics, & Rubber

 

 

 

 

 

 

3,131,292

 

 

 

 

 

 

 

Red Apple Stores Inc.(g)(h)(i)(k)

 

Retail

 

 

 

 

 

 

8,756,859

 

 

 

6,551,794

 

 

 

 

U.S. Well Services, Inc., Class A(f)(s)

 

Energy: Oil & Gas

 

 

 

 

 

 

115,402

 

 

 

1,154,024

 

 

 

920,908

 

U.S. Well Services, Inc., Class B(f)(j)(l)

 

Energy: Oil & Gas

 

 

 

 

 

 

4,359,535

 

 

 

 

 

 

 

Total Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

18,317,366

 

 

 

11,532,456

 

Limited Partnership/Limited Liability Company Interests—30.03%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BCIC Senior Loan Partners, LLC(g)(j)(k)(q)(v)

 

Finance

 

 

 

 

 

 

96,333,333

 

 

 

96,333,333

 

 

 

93,443,333

 

ETX Energy, LLC(c)(m)

 

Energy: Oil & Gas

 

 

 

 

 

 

51,119

 

 

 

 

 

 

 

ETX Energy Management Company, LLC(c)

 

Energy: Oil & Gas

 

 

 

 

 

 

53,815

 

 

 

 

 

 

 

First Boston Construction Holdings, LLC(c)(g)(k)(v)

 

Finance

 

 

 

 

 

 

10,000,000

 

 

 

10,000,000

 

 

 

7,508,299

 

Marsico Holdings, LLC(c)(j)

 

Finance

 

 

 

 

 

 

91,445

 

 

 

1,848,077

 

 

 

 

MBS Parent, LLC(c)(o)

 

Services: Business

 

 

 

 

 

 

546

 

 

 

500,000

 

 

 

213,945

 

SVP-Singer Holdings LP(c)(j)

 

Consumer Goods: Durable

 

 

 

 

 

 

1,416,279

 

 

 

5,030,156