10-Q 1 s001464x1_10q.htm FORM 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarter Ended September 30, 2016
 
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 814-00899

TCP CAPITAL CORP.
(Exact Name of Registrant as Specified in Charter)

Delaware
56-2594706
(State or Other Jurisdiction of Incorporation)
(IRS Employer Identification No.)
 
 
2951 28 th Street, Suite 1000
 
Santa Monica, California
90405
(Address of Principal Executive Offices)
(Zip Code)

Registrant’s telephone number, including area code (310) 566-1000

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

Common Stock, par value $0.001 per share
NASDAQ Global Select Market
(Title of each class)
(Name of each exchange where registered)

Securities registered pursuant to Section 12(g) of the Act: None

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 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer
Accelerated filer    
 
 
Non-accelerated filer  
Smaller Reporting company

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, $0.001 par value, outstanding as of November 8, 2016 was 53,041,751.
 


 
TCP CAPITAL CORP.
 
FORM 10-Q FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016
 

 
TABLE OF CONTENTS
 
 
 
 
Part I.
Financial Information
 
 
 
 
Item 1.
Financial Statements
 
 
Consolidated Statements of Assets and Liabilities as of September 30, 2016 (unaudited) and December 31, 2015
2
 
Consolidated Schedule of Investments as of September 30, 2016 (unaudited) and December 31, 2015
3
 
Consolidated Statements of Operations for the three and nine months ended September 30, 2016 (unaudited) and September 30, 2015 (unaudited)
13
 
Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2016 (unaudited) and year ended December 31, 2015
14
 
Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 (unaudited) and September 30, 2015 (unaudited)
15
 
Notes to Consolidated Financial Statements (unaudited)
16
 
Consolidated Schedule of Changes in Investments in Affiliates for the nine months ended September 30, 2016 (unaudited) and year ended December 31, 2015
43
 
Consolidated Schedule of Restricted Securities of Unaffiliated Issuers as of September 30, 2016 (unaudited) and December 31, 2015
45
 
Consolidating Statements of Assets and Liabilities as of September 30, 2016 (unaudited) and December 31, 2015
47
 
Consolidating Statements of Operations for the nine months ended September 30, 2016 (unaudited) and September 30, 2015 (unaudited)
49
 
 
 
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
51
 
 
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
65
 
 
 
Item 4.
Controls and Procedures
65
 
 
 
Part II.
Other Information
 
 
 
 
Item 1.
Legal Proceedings
66
 
 
 
Item 1A.
Risk Factors
66
 
 
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
66
 
 
 
Item 3.
Defaults upon Senior Securities
66
 
 
 
Item 4.
Mine Safety Disclosures
66
 
 
 
Item 5.
Other Information
66
 
 
 
Item 6.
Exhibits
66
 

1

TCP Capital Corp.
 
Consolidated Statements of Assets and Liabilities
 
   
September 30, 2016
   
December 31, 2015
 
   
(unaudited)
       
Assets
           
Investments, at fair value:
           
Companies less than 5% owned (cost of $1,161,033,998 and $1,123,682,687, respectively)
 
$
1,144,719,963
   
$
1,099,208,475
 
Companies 5% to 25% owned (cost of $72,925,246 and $68,862,518, respectively)
   
68,900,676
     
69,008,931
 
Companies more than 25% owned (cost of $88,662,808 and $39,162,221, respectively)
   
62,809,253
     
14,702,319
 
Total investments (cost of $1,322,622,052 and $1,231,707,426, respectively)
   
1,276,429,892
     
1,182,919,725
 
                 
Cash and cash equivalents
   
140,873,527
     
35,629,435
 
Receivable for investments sold
   
6,306,581
     
-
 
Accrued interest income:
               
Companies less than 5% owned
   
11,067,134
     
8,842,528
 
Companies 5% to 25% owned
   
1,036,764
     
741,306
 
Companies more than 25% owned
   
15,919
     
29,230
 
Deferred debt issuance costs
   
4,216,157
     
5,390,241
 
Unrealized appreciation on swaps
   
-
     
3,229,442
 
Options (cost of $279,327 and $51,750, respectively)
   
460,972
     
-
 
Prepaid expenses and other assets
   
1,421,623
     
2,331,044
 
Total assets
   
1,441,828,569
     
1,239,112,951
 
                 
Liabilities
               
Debt, net of unamortized issuance costs
   
631,701,662
     
498,205,471
 
Payable for investments purchased
   
9,151,343
     
6,425,414
 
Incentive allocation payable
   
5,133,010
     
5,207,606
 
Interest payable
   
4,520,221
     
2,911,257
 
Payable to the Advisor
   
877,866
     
508,334
 
Accrued expenses and other liabilities
   
3,336,925
     
3,877,852
 
Total liabilities
   
654,721,027
     
517,135,934
 
                 
Commitments and contingencies (Note 5)
               
                 
Net assets applicable to common shareholders
 
$
787,107,542
   
$
721,977,017
 
                 
Composition of net assets applicable to common shareholders
               
Common stock, $0.001 par value; 200,000,000 shares authorized, 53,041,751 and 48,834,734 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
 
$
53,042
   
$
48,834
 
Paid-in capital in excess of par
   
944,993,651
     
878,383,356
 
Accumulated net investment income
   
24,716,951
     
22,261,793
 
Accumulated net realized losses
   
(136,476,545
)
   
(132,483,593
)
Accumulated net unrealized depreciation
   
(46,179,557
)
   
(46,233,373
)
Net assets applicable to common shareholders
 
$
787,107,542
   
$
721,977,017
 
                 
Net assets per share
 
$
14.84
   
$
14.78
 
 
See accompanying notes to the consolidated financial statements.
2

TCP Capital Corp.
 
Consolidated Schedule of Investments (Unaudited)
 
September 30, 2016
 
                                             
Fair
Value
   
% of Total
Cash and
Investments
       
                                                       
Issuer
 
Instrument
 
Ref
 
Floor
   
Spread
   
Total Coupon
 
Maturity
 
Principal
   
Cost
           
Notes
 
                                                           
Debt Investments (A)
                                                     
Activities Related to Real Estate
                                                     
Associations, Inc.
 
First Lien FILO Term Loan
 
LIBOR (Q)
   
1.00
%
   
8.96
%
   
9.96
%
12/23/2019
 
$
12,924,237
   
$
12,795,214
   
$
12,794,994
     
0.90
%
     
                                                                         
Advertising and Public Relations Services
                                                                   
InMobi, Inc. (Singapore)
 
First Lien Delayed Draw Tranche 1 Term Loan
(1.25% Exit Fee)
 
LIBOR (M)
   
0.33
%
   
10.17
%
   
10.98
%
9/1/2018
 
$
15,000,000
     
14,717,540
     
14,735,250
     
1.04
%
 
H/L
 
InMobi, Inc. (Singapore)
 
First Lien Delayed Draw Tranche 1 Term Loan
 
LIBOR (M)
   
0.33
%
   
10.17
%
   
N/A
 
9/1/2018
 
$
     
-
     
-
     
-
    H
 
InMobi, Inc. (Singapore)
 
First Lien Delayed Draw Tranche 1 Term Loan
 
LIBOR (M)
   
0.33
%
   
10.17
%
   
N/A
 
9/1/2018
 
$
     
-
     
-
     
-
    H
 
                                               
14,717,540
     
14,735,250
     
1.04
%
     
Air Transportation
                                                                   
Mesa Air Group, Inc.
 
Acquisition Loan
 
LIBOR (M)
   
-
     
7.25
%
   
7.81
%
7/15/2022
 
$
14,545,227
     
14,324,197
     
14,836,131
     
1.05
%
     
                                                                         
Apparel Manufacturing
                                                                   
Broder Bros., Co.
 
First Lien Term Loan (First Out)
 
LIBOR (Q)
   
1.25
%
   
5.75
%
   
7.00
%
6/3/2021
 
$
9,760,000
     
9,592,010
     
9,711,200
     
0.69
%
     
Broder Bros., Co.
 
First Lien Term Loan B (Last Out)
 
LIBOR (Q)
   
1.25
%
   
12.25
%
   
13.50
%
6/3/2021
 
$
9,840,000
     
9,675,719
     
9,741,600
     
0.69
%
     
JH Apparel Holdings, LLC
 
First Lien FILO Term Loan
 
LIBOR (M)
   
1.00
%
   
9.60
%
   
10.60
%
4/8/2019
 
$
2,953,456
     
2,940,331
     
2,982,990
     
0.21
%
     
                                               
22,208,060
     
22,435,790
     
1.59
%
     
Building Equipment Contractors
                                                                   
Hylan Datacom & Electrical, LLC
 
First Lien Delayed Draw Term Loan
 
LIBOR (Q)
   
1.00
%
   
7.50
%
   
8.50
%
7/25/2021
 
$
     
-
     
-
     
-
       
Hylan Datacom & Electrical, LLC
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
7.50
%
   
8.50
%
7/25/2021
 
$
14,386,131
     
14,173,719
     
14,172,065
     
1.00
%
     
                                               
14,173,719
     
14,172,065
     
1.00
%
     
Business Support Services
                                                                   
Enerwise Global Technologies, Inc.
 
Sr Secured Revolving Loan
 
LIBOR (Q)
   
0.23
%
   
8.52
%
   
N/A
 
11/30/2018
 
$
     
(22,700
)
   
(24,400
)
   
-
    K
 
Enerwise Global Technologies, Inc.
 
Sr Secured Term Loan (1.0% Exit Fee)
 
LIBOR (Q)
   
0.23
%
   
9.27
%
   
9.92
%
11/30/2019
 
$
23,937,500
     
23,785,168
     
23,791,481
     
1.68
%
  L
 
STG-Fairway Acquisitions, Inc.
(First Advantage)
 
Second Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
9.25
%
   
10.25
%
6/30/2023
 
$
31,000,000
     
30,574,535
     
31,093,000
     
2.19
%
     
                                               
54,337,003
     
54,860,081
     
3.87
%
     
Chemicals
                                                                       
Anuvia Plant Nutrients Holdings, LLC
 
Sr Secured Term Loan (8.0% Exit Fee)
 
LIBOR (Q)
   
-
     
10.63
%
   
12.15
%
2/1/2018
 
$
9,053,891
     
9,480,486
     
9,650,996
     
0.68
%
  L
 
Green Biologics, Inc.
 
Sr Secured Delayed Draw Term Loan
(10.0% Exit Fee)
 
Prime Rate
   
-
     
7.75
%
   
11.25
%
5/1/2018
 
$
15,000,000
     
15,340,950
     
14,694,750
     
1.04
%
  L
 
                                               
24,821,436
     
24,345,746
     
1.72
%
     
Communications Equipment Manufacturing
                                                                   
Globecomm Systems, Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
1.25
%
   
7.63
%
   
8.88
%
12/11/2018
 
$
14,517,321
     
14,372,148
     
14,517,320
     
1.02
%
  B
 
Globecomm Systems, Inc.
 
First Lien Series A Term Loan
 
LIBOR (Q)
   
1.25
%
   
7.63
%
   
N/A
 
12/11/2018
 
$
     
-
     
-
     
-
    B  
Triangle Acquisition Co. (Polycom)
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
6.50
%
   
7.50
%
9/29/2023
 
$
5,000,000
     
4,800,000
     
4,825,000
     
0.34
%
     
                                               
19,172,148
     
19,342,320
     
1.36
%
     
                                                                         
Computer Equipment Manufacturing
                                                                   
Silicon Graphics  International Corp.
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
9.00
%
   
10.00
%
7/27/2018
 
$
15,846,397
     
15,677,901
     
16,140,347
     
1.14
%
  J
 
                                                                         
Computer Systems Design and Related Services
                                                               
Dealersocket, Inc.
 
Senior Secured 1st Lien Term Loan
 
LIBOR (M)
   
1.00
%
   
10.00
%
   
11.00
%
2/10/2021
 
$
17,500,000
     
16,858,354
     
17,272,500
     
1.22
%
     
MSC Software Corporation
 
Second Lien Term Loan
 
LIBOR (M)
   
1.00
%
   
7.50
%
   
8.50
%
5/29/2021
 
$
6,993,035
     
6,949,718
     
6,853,175
     
0.49
%
     
Marketo, Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
9.50
%
   
10.50
%
8/16/2021
 
$
23,295,455
     
22,605,970
     
22,596,591
     
1.59
%
     
Marketo, Inc.
 
Senior Secured Revolver
 
LIBOR (Q)
   
1.00
%
   
9.50
%
   
10.50
%
8/16/2021
 
$
     
(49,877
)
   
(51,135
)
   
-
    K
 
OnX Enterprise Solutions, Ltd. (Canada)
 
First Lien Term Loan B
 
LIBOR (Q)
   
-
     
8.00
%
   
8.75
%
9/3/2018
 
$
2,319,933
     
2,319,933
     
2,319,933
     
0.16
%
  H
 
OnX Enterprise Solutions, Ltd. (Canada)
 
First Lien Term Loan
 
LIBOR (Q)
   
-
     
8.00
%
   
8.75
%
9/3/2018
 
$
10,346,667
     
10,287,679
     
10,346,667
     
0.73
%
 
H
 
OnX USA, LLC
 
First Lien Term Loan B
 
LIBOR (Q)
   
-
     
8.00
%
   
8.75
%
9/3/2018
 
$
3,749,867
     
3,749,867
     
3,749,867
     
0.26
%
     
OnX USA, LLC
 
First Lien Term Loan
 
LIBOR (Q)
   
-
     
8.00
%
   
8.75
%
9/3/2018
 
$
3,173,333
     
3,160,481
     
3,173,333
     
0.22
%
     
Waterfall International, Inc.
 
First Lien Delayed Draw Term Loan
(3.0% Exit Fee)
 
LIBOR (Q)
   
-
     
11.67
%
   
12.48
%
9/1/2018
 
$
4,800,000
     
4,798,895
     
4,779,360
     
0.34
%
 
L
 
                                               
70,681,020
     
71,040,291
     
5.01
%
     
Data Processing and Hosting Services
                                                                   
Rightside Group, Ltd.
 
Second Lien Term Loan
 
LIBOR (Q)
   
0.50
%
   
8.75
%
   
9.63
%
8/6/2019
 
$
4,562,500
     
3,964,688
     
4,608,125
     
0.33
%
     
United TLD Holdco, Ltd. (Rightside)
(Cayman Islands)
 
Second Lien Term Loan
 
LIBOR (Q)
   
0.50
%
   
8.75
%
   
9.63
%
8/6/2019
 
$
9,125,000
     
7,929,375
     
9,216,250
     
0.65
%
 
H
 
                                               
11,894,063
     
13,824,375
     
0.98
%
     
Electric Power Generation, Transmission and Distribution
                                                                   
Holocene Renewable Energy Fund 3, LLC
(Conergy)
 
First Lien Term Loan
 
Fixed
   
-
     9% Cash
+ 1% PIK
   
10.00
%
9/10/2017
 
$
7,518,173
     
7,480,132
     
7,442,991
     
0.53
%
     
CGY UK Portfolio I Borrower LLC,
(Conergy)
 
Senior Secured 1st Lien Term Loan
 
LIBOR (Q)
   
-
     
9.00
%
   
9.85
%
3/3/2018
 
$
3,951,020
     
3,862,845
     
3,911,510
     
0.28
%
     
                                               
11,342,977
     
11,354,501
     
0.81
%
     
Electronic Component Manufacturing
                                                                   
Redaptive, Inc.
 
First Lien Delayed Draw Term Loan
 
LIBOR (Q)
   
-
     
10.72
%
   
N/A
 
7/1/2018
 
$
     
(84,877
)
   
-
     
-
   
K
 
Soraa, Inc.
 
Tranche A Term Loan (3.0% Exit Fee)
 
LIBOR (Q)
   
0.44
%
   
9.33
%
   
10.15
%
3/1/2018
 
$
18,563,581
     
18,170,569
     
18,164,464
     
1.28
%
 
L
 
Soraa, Inc.
 
Tranche B Term Loan
 
LIBOR (Q)
   
0.44
%
   
9.33
%
   
10.15
%
9/1/2017
 
$
1,603,779
     
1,539,706
     
1,548,689
     
0.11
%
     
                                               
19,625,398
     
19,713,153
     
1.39
%
     
Equipment Leasing
                                                                   
36th Street Capital Partners Holdings, LLC
 
Senior Note
 
Fixed
   
-
     
12.00
%
   
12.00
%
11/1/2020
 
$
24,180,718
     
24,180,718
     
24,180,718
     
1.71
%
 
E/F
 
Essex Ocean, LLC (Solexel)
 
Sr Secured Term Loan
 
Fixed
   
-
     
8.00
%
   
8.00
%
8/15/2018
 
$
1,928,731
     
1,928,731
     
1,967,306
     
0.14
%
     
                                               
26,109,449
     
26,148,024
     
1.85
%
     

3

TCP Capital Corp.
 
Consolidated Schedule of Investments (Unaudited) (Continued)
 
September 30, 2016
 
                                             
Fair
Value
   
% of Total
Cash and
Investments
       
                                                       
Issuer
 
Instrument
 
Ref
 
Floor
   
Spread
   
Total Coupon
 
Maturity
 
Principal
   
Cost
           
Notes
 
                                                           
Debt Investments (continued)
                                                     
Facilities Support Services
                                                     
NANA Development Corp.
 
First Lien Term Loan B
 
LIBOR (M)
   
1.25
%
   
6.75
%
   
8.00
%
3/15/2018
 
$
1,055,416
   
$
991,404
   
$
997,368
     
0.07
%
     
                                                                         
Financial Investment Activities
                                                                   
iPayment, Inc.
 
First Lien Term Loan B2
 
LIBOR (Q)
   
1.50
%
   
5.25
%
   
6.75
%
5/8/2017
 
$
12,304,553
     
12,015,428
     
11,689,326
     
0.83
%
     
Magnolia Finance V plc (Cayman Islands)
 
Asset-Backed Credit Linked Notes
 
Fixed
   
-
     
13.13
%
   
13.13
%
8/2/2021
 
$
15,000,000
     
15,000,000
     
14,926,500
     
1.05
%
 
E/H
 
                                               
27,015,428
     
26,615,826
     
1.88
%
     
Gaming
                                                                   
AP Gaming I, LLC
 
First Lien Revolver
 
LIBOR (M)
   
-
     
8.25
%
   
N/A
 
12/20/2018
 
$
     
(1,707,675
)
   
(1,125,000
)
   
(0.08
%)
  K
 
                                                                         
Grocery Stores
                                                                   
Bashas, Inc.
 
First Lien FILO Term Loan
 
LIBOR (M)
   
1.50
%
   
8.80
%
   
10.30
%
10/8/2019
 
$
9,362,778
     
9,326,959
     
9,456,406
     
0.67
%
     
                                                                         
Hospitals
                                                                   
KPC Healthcare, Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
9.50
%
   
10.50
%
8/28/2020
 
$
15,821,501
     
15,527,235
     
16,194,097
     
1.14
%
     
Pacific Coast Holdings Investment, LLC
 
Senior Secured 1st Lien Delayed
Draw Term Loan
 
LIBOR (M)
   
2.00
%
   
9.70
%
   
11.70
%
10/23/2019
 
$
10,828,233
     
10,762,079
     
10,828,233
     
0.76
%
     
                                               
26,289,314
     
27,022,330
     
1.90
%
     
Insurance Carriers
                                                                   
JSS Holdings, Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
6.50
%
   
7.50
%
8/31/2021
 
$
3,800,000
     
3,735,379
     
3,781,000
     
0.27
%
     
US Apple Holdco, LLC (Ventiv Technology)
 
First Lien Term Loan
 
LIBOR (Q)
   
0.50
%
   
13.62
%
   
14.50
%
8/29/2019
 
$
20,015,152
     
19,495,681
     
20,015,152
     
1.41
%
     
                                               
23,231,060
     
23,796,152
     
1.68
%
     
Insurance Related Activities
                                                                   
Acrisure, LLC
 
Second Lien Notes
 
LIBOR (Q)
   
1.00
%
   
9.00
%
   
10.00
%
11/19/2022
 
$
28,999,999
     
28,618,700
     
28,999,999
     
2.05
%
     
Acrisure, LLC
 
Second Lien Incremental Notes
 
LIBOR (Q)
   
1.00
%
   
9.00
%
   
10.00
%
11/19/2022
 
$
6,000,000
     
5,943,055
     
6,000,000
     
0.42
%
     
                                               
34,561,755
     
34,999,999
     
2.47
%
     
Lessors of Nonfinancial Licenses
                                                                   
ABG Intermediate Holdings 2, LLC
 
Second Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
8.50
%
   
9.50
%
5/27/2022
 
$
16,573,588
     
16,430,136
     
16,283,550
     
1.15
%
     
ABG Intermediate Holdings 2, LLC
 
Second Lien Incremental Term Loan
 
LIBOR (Q)
   
1.00
%
   
8.50
%
   
9.50
%
5/27/2022
 
$
3,426,412
     
3,396,188
     
3,366,450
     
0.24
%
     
                                               
19,826,324
     
19,650,000
     
1.39
%
     
Management, Scientific, and Technical Consulting Services
                                                               
Dodge Data & Analytics, LLC
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
8.75
%
   
9.75
%
10/31/2019
 
$
24,170,030
     
23,748,562
     
23,573,030
     
1.66
%
     
                                                                         
Medical Equipment and Supplies Manufacturing
                                                               
Bioventus, LLC
 
Second Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
10.00
%
   
11.00
%
4/10/2020
 
$
11,000,000
     
10,844,831
     
11,027,500
     
0.78
%
     
                                                                         
Motion Picture and Video Industries
                                                                   
CORE Entertainment, Inc.
 
First Lien Term Loan
 
Fixed
   
-
     
11.00
%
   
11.00
%
6/21/2017
 
$
9,462,231
     
9,497,311
     
4,315,251
     
0.30
%
 
C
 
CORE Entertainment, Inc.
 
Second Lien Term Loan
 
Fixed
   
-
     
15.50
%
   
15.50
%
6/21/2018
 
$
7,569,785
     
7,700,187
     
297,493
     
0.02
%
 
C
 
                                               
17,197,498
     
4,612,744
     
0.32
%
     
Nondepository Credit Intermediation
                                                                   
Caribbean Financial Group
(Cayman Islands)
 
Sr Secured Notes
 
Fixed
   
-
     
11.50
%
   
11.50
%
11/15/2019
 
$
28,678,000
     
28,560,113
     
29,108,170
     
2.05
%
 
E/G/H
 
Daymark Financial Acceptance, LLC
 
First Lien Delayed Draw Term Loan
 
LIBOR (M)
   
-
     
9.50
%
   
10.02
%
1/12/2020
 
$
17,500,000
     
17,283,898
     
17,263,750
     
1.22
%
     
Greystone Select Holdings, LLC
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
8.00
%
   
9.00
%
3/26/2021
 
$
16,102,989
     
15,945,396
     
15,933,907
     
1.13
%
     
Trade Finance Funding I, Ltd.
(Cayman Islands)
 
Secured Class B Notes
 
Fixed
   
-
     
10.75
%
   
10.75
%
11/13/2018
 
$
15,084,000
     
15,084,000
     
14,857,740
     
1.05
%
 
E/H
 
                                               
76,873,407
     
77,163,567
     
5.45
%
     
Other Chemical Product and Preparation Manufacturing
                                                                   
Nanosys, Inc.
 
First Lien Delayed Draw Term Loan
(3.5% Exit Fee)
 
LIBOR (Q)
   
-
     
9.81
%
   
10.69
%
4/1/2019
 
$
7,000,000
     
6,448,006
     
6,740,300
     
0.48
%
 
L
 
                                                                         
Other Information Services
                                                                   
Asset International, Inc.
 
Delayed Draw Term Loan
 
LIBOR (M)
   
1.00
%
   
7.00
%
   
N/A
 
7/31/2020
 
$
     
(24,780
)
   
(56,427
)
   
-
   
K
 
Asset International, Inc.
 
Revolver Loan
 
LIBOR (M)
   
1.00
%
   
7.00
%
   
N/A
 
7/31/2020
 
$
     
(11,672
)
   
(26,580
)
   
-
   
K
 
Asset International, Inc.
 
First Lien Term Loan
 
LIBOR (M)
   
1.00
%
   
7.00
%
   
8.00
%
7/31/2020
 
$
15,506,085
     
15,293,023
     
15,086,646
     
1.06
%
     
Simmons Research, LLC
 
First Lien Term Loan
 
LIBOR (Q)
   
0.50
%
   
10.50
%
   
11.38
%
12/11/2020
 
$
4,936,601
     
4,849,352
     
4,899,576
     
0.35
%
     
SoundCloud Ltd. (United Kingdom)
 
Sr Secured Term Loan (2.0% Exit Fee)
 
LIBOR (M)
   
0.28
%
   
10.72
%
   
11.60
%
10/1/2018
 
$
31,550,000
     
31,562,496
     
32,039,060
     
2.26
%
 
H/L
 
TCH-2 Holdings, LLC (TravelClick)
 
Second Lien Term Loan
 
LIBOR (M)
   
1.00
%
   
7.75
%
   
8.75
%
11/6/2021
 
$
19,988,392
     
19,760,997
     
19,788,509
     
1.40
%
 
G
 
                                               
71,429,416
     
71,730,784
     
5.07
%
     
Other Manufacturing
                                                                   
AGY Holding Corp.
 
Sr Secured Term Loan
 
Fixed
   
-
     
12.00
%
   
12.00
%
9/15/2018
 
$
4,869,577
     
4,869,577
     
4,869,577
     
0.34
%
 
B
 
AGY Holding Corp.
 
Second Lien Notes
 
Fixed
   
-
     
11.00
%
   
11.00
%
11/15/2016
 
$
9,268,000
     
7,586,317
     
9,268,000
     
0.65
%
 
B/E
 
AGY Holding Corp.
 
Delayed Draw Term Loan
 
Fixed
   
-
     
12.00
%
   
12.00
%
9/15/2018
 
$
     
-
     
-
     
-
   
B
 
Boomerang Tube, LLC
 
Subordinated Notes
 
LIBOR (M)
   
-
     
17.50
%
   
17.50
%
2/1/2021
 
$
1,030,741
     
1,030,741
     
149,458
     
0.01
%
 
C
 
                                               
13,486,635
     
14,287,035
     
1.00
%
     
Other Publishing
                                                                   
Bisnow, LLC
 
First Lien Revolver
 
LIBOR (Q)
   
-
     
9.00
%
   
N/A
 
4/29/2021
 
$
     
(24,000
)
   
(22,200
)
   
-
    K
 
Bisnow, LLC
 
First Lien Term Loan
 
LIBOR (Q)
   
-
     
9.00
%
   
9.88
%
4/29/2021
 
$
8,614,356
     
8,453,191
     
8,459,298
     
0.60
%
     
                                               
8,429,191
     
8,437,098
     
0.60
%
     
Other Telecommunications
                                                                   
Securus Technologies, Inc.
 
Second Lien Term Loan
 
LIBOR (Q)
   
1.25
%
   
7.75
%
   
9.00
%
4/30/2021
 
$
10,387,097
     
10,283,226
     
10,043,024
     
0.71
%
     
                                                                         
Pharmaceuticals 
                                                                   
Lantheus Medical Imaging, Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
6.00
%
   
7.00
%
6/30/2022
 
$
9,277,833
     
8,785,818
     
9,115,471
     
0.64
%
     
                                                                         
Plastics Manufacturing
                                                                   
Iracore International, Inc.
 
Sr Secured Notes
 
Fixed
   
-
     
9.50
%
   
9.50
%
6/1/2018
 
$
13,600,000
     
13,600,000
     
7,208,000
     
0.51
%
 
E/G
 
 
4

TCP Capital Corp.
 
Consolidated Schedule of Investments (Unaudited) (Continued)
 
September 30, 2016
 
                                             
Fair
Value
   
% of Total
Cash and
Investments
       
                                                       
Issuer
 
Instrument
 
Ref
 
Floor
   
Spread
   
Total Coupon
 
Maturity
 
Principal
   
Cost
           
Notes
 
                                                           
Debt Investments (continued)
                                                     
Radio and Television Broadcasting 
                                                     
Fuse, LLC
 
Sr Secured Notes
 
Fixed
   
-
     
10.38
%
   
10.38
%
7/1/2019
 
$
7,312,000
   
$
7,312,000
   
$
5,027,000
     
0.35
%
 
E/G
 
NEP/NCP Holdco, Inc.
 
Second Lien Term Loan
 
LIBOR (M)
   
1.25
%
   
8.75
%
   
10.00
%
7/22/2020
 
$
15,981,496
     
15,709,496
     
16,101,357
     
1.14
%
     
                                               
23,021,496
     
21,128,357
     
1.49
%
     
                                                                         
Restaurants 
                                                                   
RM OpCo, LLC (Real Mex)
 
Convertible Second Lien Term Loan Tranche B-1
 
Fixed
   
-
     
8.50
%
   
8.50
%
3/30/2018
 
$
1,902,207
     
1,902,207
     
1,902,207
     
0.13
%
 
B
 
RM OpCo, LLC (Real Mex)
 
First Lien Term Loan Tranche A
 
Fixed
   
-
     
7.00
%
   
7.00
%
3/30/2018
 
$
4,864,613
     
4,581,227
     
4,864,613
     
0.34
%
  B
 
RM OpCo, LLC (Real Mex)
 
Second Lien Term Loan Tranche B
 
Fixed
   
-
     
8.50
%
   
8.50
%
3/30/2018
 
$
9,478,043
     
9,478,043
     
3,981,726
     
0.28
%
 
B
 
RM OpCo, LLC (Real Mex)
 
Second Lien Term Loan Tranche B-1
 
Fixed
   
-
     
8.50
%
   
8.50
%
3/30/2018
 
$
2,984,959
     
2,969,537
     
2,984,959
     
0.21
%
  B
 
RM OpCo, LLC (Real Mex)
 
Sr Convertible Second Lien Term Loan B
 
Fixed
   
-
     
8.50
%
   
8.50
%
3/30/2018
 
$
3,422,601
     
3,422,601
     
3,422,601
     
0.24
%
  B
 
                                               
22,353,615
     
17,156,106
     
1.20
%
     
Retail 
                                                                   
Bon-Ton, Inc.
 
First Lien Tranche A-1 Revolver
 
LIBOR (Q)
   
1.00
%
   
9.50
%
   
10.50
%
3/15/2021
 
$
4,432,934
     
4,344,275
     
4,388,604
     
0.31
%
     
Gander Mountain Company
 
Second Lien Term Loan
 
LIBOR (Q)
   
-
     
9.50
%
   
10.33
%
6/15/2018
 
$
11,465,152
     
11,360,266
     
11,350,501
     
0.80
%
     
The Gymboree Corporation
 
First Lien Term Loan
 
LIBOR (Q)
   
-
     
10.25
%
   
11.09
%
9/24/2020
 
$
9,704,432
     
9,519,691
     
9,530,723
     
0.67
%
     
Kenneth Cole Productions, Inc.
 
First Lien FILO Term Loan
 
LIBOR (M)
   
1.00
%
   
8.50
%
   
9.50
%
9/25/2020
 
$
20,672,789
     
20,479,758
     
20,879,517
     
1.47
%
     
                                               
45,703,990
     
46,149,345
     
3.25
%
     
Satellite Telecommunications
                                                                   
Avanti Communications Group, PLC
(United Kingdom)
 
Sr Secured Notes
 
Fixed
   
-
     
10.00
%
   
10.00
%
10/1/2019
 
$
9,393,000
     
9,393,000
     
7,509,506
     
0.53
%
 
E/G/H
 
                                                                         
Scientific Research and Development Services 
                                                               
BPA Laboratories, Inc.
 
Senior Secured Notes
 
Fixed
   
-
     
12.25
%
   
12.25
%
4/1/2017
 
$
38,932,000
     
39,001,750
     
39,061,760
     
2.76
%
 
E/G
 
                                                                         
Software Publishing 
                                                                   
Acronis International GmbH
(Switzerland)
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
11.00
%
   
12.00
%
6/9/2017
 
$
28,336,513
     
28,303,218
     
28,121,155
     
1.98
%
  H
 
ArcServe (USA), LLC
 
Second Lien Term Loan
 
LIBOR (Q)
   
0.50
%
   8.5% Cash
+ 1.25% PIK
   
10.60
%
1/31/2020
 
$
30,124,704
     
29,727,413
     
28,312,703
     
2.00
%
     
Aptos Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
6.75
%
   
7.75
%
9/1/2022
 
$
10,000,000
     
9,800,200
     
9,800,000
     
0.69
%
     
Autoalert, LLC
 
First Lien Term Loan
 
LIBOR (Q)
   
0.25
%
   4.75% Cash
+ 4% PIK
   
9.63
%
3/31/2019
 
$
35,627,947
     
35,232,825
     
35,531,752
     
2.51
%
     
BlackLine Systems, Inc.
 
First Lien Acquisition Term Loan
 
LIBOR (Q)
   
1.50
%
   3.25% Cash
+ 4.75% PIK
   
9.50
%
9/25/2018
 
$
9,593,227
     
9,500,850
     
9,503,530
     
0.67
%
     
BlackLine Systems, Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
1.50
%
   3.25% Cash
+ 4.75% PIK
   
9.50
%
9/25/2018
 
$
15,347,165
     
14,711,503
     
15,203,669
     
1.07
%
     
BlackLine Systems, Inc.
 
Senior Secured 1st Lien Incremental Term Loan
 
LIBOR (Q)
   
1.50
%
   3.25% Cash
+ 4.75% PIK
   
9.50
%
9/25/2018
 
$
3,868,410
     
3,808,441
     
3,832,240
     
0.27
%
     
BlackLine Systems, Inc.
 
Senior Secured Revolver
 
LIBOR (Q)
   
0.50
%
   
6.00
%
   
6.50
%
9/25/2018
 
$
     
-
     
-
     
-
       
Bluehornet Networks, Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
-
     
9.50
%
   
10.36
%
12/3/2020
 
$
5,837,798
     
5,732,817
     
5,837,798
     
0.41
%
     
Edmentum, Inc.
 
Jr Revolving Facility
 
Fixed
   
-
     
5.00
%
   
5.00
%
6/9/2020
 
$
-
     
-
     
-
     
-
    B
 
Edmentum Ultimate Holdings, LLC
 
Sr PIK Notes
 
Fixed
   
-
     
8.50
%
   
8.50
%
6/9/2020
 
$
2,784,444
     
2,784,444
     
2,784,444
     
0.20
%
  B
 
Edmentum Ultimate Holdings, LLC
 
Jr PIK Notes
 
Fixed
   
-
     
10.00
%
   
10.00
%
6/9/2020
 
$
12,708,557
     
12,176,942
     
12,225,632
     
0.86
%
  B
 
Fidelis Acquisitionco, LLC
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
8.00
%
   
9.00
%
11/4/2019
 
$
42,565,572
     
41,947,258
     
42,246,330
     
2.98
%
     
Fidelis Acquisitionco, LLC
 
Sr Secured Revolver
 
LIBOR (Q)
   
1.00
%
   
8.00
%
   
9.00
%
11/4/2019
 
$
3,182,143
     
3,182,143
     
3,158,277
     
0.22
%
     
Newscycle Solutions, Inc.
 
Second Lien Term Loan
 
LIBOR (Q)
   
-
     
13.00
%
   
13.83
%
9/10/2021
 
$
11,513,362
     
11,181,123
     
11,255,463
     
0.79
%
     
Newscycle Solutions AB
 
Second Lien Term Loan B
 
LIBOR (Q)
   
-
     
13.00
%
   
13.83
%
9/10/2021
 
$
11,513,362
     
11,181,123
     
11,255,463
     
0.79
%
     
Soasta, Inc.
 
Senior Secured 1st Lien Term Loan
(4.0% Exit Fee)
 
LIBOR (Q)
   
-
     
9.56
%
   
10.44
%
4/1/2019
 
$
17,880,435
     
17,699,921
     
17,777,622
     
1.25
%
  L
 
Utilidata, Inc.
 
First Lien Delayed Draw Term Loan
(1.0% Exit Fee)
 
LIBOR (M)
   
0.62
%
   
9.88
%
   
10.69
%
1/1/2019
 
$
3,200,000
     
3,120,904
     
3,040,000
     
0.21
%
  L
 
Virgin Pulse Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
-
     
8.00
%
   
8.88
%
5/21/2020
 
$
7,500,000
     
7,416,185
     
7,500,000
     
0.53
%
     
                                               
247,507,310
     
247,386,078
     
17.43
%
     
                                                                         
Textile Furnishings Mills 
                                                                   
Lexmark Carpet Mills, Inc.
 
First Lien Term Loan
 
LIBOR (Q)
   
1.00
%
   
10.00
%
   
11.00
%
12/19/2019
 
$
23,038,235
     
23,038,235
     
22,653,496
     
1.60
%
     
Lexmark Carpet Mills, Inc.
 
First Lien Term Loan B
 
LIBOR (Q)
   
1.00
%
   
10.00
%
   
11.00
%
12/19/2019
 
$
7,902,650
     
7,749,659
     
7,770,676
     
0.55
%
     
                                               
30,787,894
     
30,424,172
     
2.15
%
     
Utility System Construction 
                                                                   
Kawa Solar Holdings Limited
 
Bank Guarantee Credit Facility
 
Fixed
   
-
     8.2% Cash
+ 3.5% PIK
   
11.70
%
7/2/2017
 
$
21,089,833
     
21,089,833
     
20,704,944
     
1.46
%
  F
 
Kawa Solar Holdings Limited
 
Revolving Credit Facility
 
Fixed
   
-
     
8.20
%
   
8.20
%
7/2/2017
 
$
4,000,000
     
4,000,000
     
4,000,000
     
0.28
%
  F