10-Q 1 tm2015461d1_10q.htm FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x	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

Commission file number: 814-00866

MONROE CAPITAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Maryland	27-4895840
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

311 South Wacker Drive, Suite 6400 Chicago, Illinois	60606
(Address of Principal Executive Office)	(Zip Code)

(312) 258-8300

(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 $0.001 per share 5.75% Notes due 2023		MRCC MRCCL		The Nasdaq Global Select Market 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 x 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 x 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	x

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 x

As of May 7, 2020, the registrant had 20,444,564 shares of common stock, $0.001 par value, outstanding.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements	3

	Consolidated Statements of Assets and Liabilities as of March 31, 2020 (unaudited) and December 31, 2019	3

	Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 (unaudited)	4

	Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2020 and 2019 (unaudited)	5

	Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 (unaudited)	6

	Consolidated Schedules of Investments as of March 31, 2020 (unaudited) and December 31, 2019	7

	Notes to Consolidated Financial Statements (unaudited)	20

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64

Item 4.	Controls and Procedures	64

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	65

Item 1A.	Risk Factors	65

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	69

Item 3.	Defaults Upon Senior Securities	69

Item 4.	Mine Safety Disclosures	69

Item 5.	Other Information	69

Item 6.	Exhibits	70

Signatures		71

Part I. Financial Information

Item 1. Consolidated Financial Statements

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

	March 31, 2020			December 31, 2019
	(unaudited)
ASSETS
Investments, at fair value:
Non-controlled/non-affiliate company investments	$	501,494		$	513,959
Non-controlled affiliate company investments		58,018			59,860
Controlled affiliate company investments		31,325			42,412
Total investments, at fair value (amortized cost of: $654,491 and $634,736, respectively)		590,837			616,231
Cash		9,320			2,234
Restricted cash		9,892			27,409
Unrealized gain on foreign currency forward contracts		39			—
Interest receivable		9,568			8,689
Other assets		759			495
Total assets		620,415			655,058

LIABILITIES
Debt:
Revolving credit facility		192,046			180,294
2023 Notes		109,000			109,000
SBA debentures payable		115,000			115,000
Total debt		416,046			404,294
Less: Unamortized deferred financing costs		(7,569	)		(8,053	)
Total debt, less unamortized deferred financing costs		408,477			396,241
Interest payable		1,807			2,763
Unrealized loss on foreign currency forward contracts		—			59
Management fees payable		2,551			2,751
Incentive fees payable		—			1,374
Accounts payable and accrued expenses		2,193			2,513
Directors' fees payable		35			—
Total liabilities		415,063			405,701
Net assets	$	205,352		$	249,357

Commitments and contingencies (See Note 11)

ANALYSIS OF NET ASSETS
Common stock, $0.001 par value, 100,000 shares authorized, 20,445 and 20,445 shares issued and outstanding, respectively	$	20		$	20
Capital in excess of par value		288,850			288,850
Accumulated undistributed (overdistributed) earnings		(83,518	)		(39,513	)
Total net assets	$	205,352		$	249,357

Net asset value per share	$	10.04		$	12.20

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

	Three months ended March 31,
	2020			2019
Investment income:
Non-controlled/non-affiliate company investments:
Interest income	$	12,347		$	12,830
Payment-in-kind interest income		71			98
Dividend income		16			13
Fee income		198			569
Total investment income from non-controlled/non-affiliate company investments		12,632			13,510
Non-controlled affiliate company investments:
Interest income		190			923
Dividend income		25			—
Payment-in-kind interest income		1,005			956
Total investment income from non-controlled affiliate company investments		1,220			1,879
Controlled affiliate company investments:
Dividend income		1,150			770
Total investment income from controlled affiliate company investments		1,150			770
Total investment income		15,002			16,159

Operating expenses:
Interest and other debt financing expenses		4,830			4,354
Base management fees		2,551			2,521
Incentive fees		—			1,600
Professional fees		215			289
Administrative service fees		338			347
General and administrative expenses		231			227
Directors' fees		35			35
Expenses before incentive fee waiver		8,200			9,373
Incentive fee waiver		—			(281	)
Total expenses, net of incentive fee waiver		8,200			9,092
Net investment income before income taxes		6,802			7,067
Income taxes, including excise taxes		20			(7	)
Net investment income		6,782			7,074

Net gain (loss):
Net realized gain (loss):
Non-controlled/non-affiliate company investments		94			—
Foreign currency forward contracts		(4	)		(8	)
Foreign currency and other transactions		(15	)		(1	)
Net realized gain (loss)		75			(9	)

Net change in unrealized gain (loss):
Non-controlled/non-affiliate company investments		(20,355	)		2,288
Non-controlled affiliate company investments		(13,707	)		(1,754	)
Controlled affiliate company investments		(11,087	)		323
Foreign currency forward contracts		98			(65	)
Foreign currency and other transactions		1,344			(416	)
Net change in unrealized gain (loss)		(43,707	)		376

Net gain (loss)		(43,632	)		367

Net increase (decrease) in net assets resulting from operations	$	(36,850	)	$	7,441

Per common share data:
Net investment income per share - basic and diluted	$	0.33		$	0.35
Net increase (decrease) in net assets resulting from operations per share - basic and diluted	$	(1.81	)	$	0.36
Weighted average common shares outstanding - basic and diluted		20,445			20,445

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(in thousands)

	Common Stock
	Number of shares		Par value		Capital in excess of par value		Accumulated undistributed (overdistributed) earnings			Total net assets
Balances at December 31, 2018		20,445	$	20	$	288,911	$	(30,164	)	$	258,767
Net investment income		—		—		—		7,074			7,074
Net realized gain (loss)		—		—		—		(9	)		(9	)
Net change in unrealized gain (loss)		—		—		—		376			376
Distributions to stockholders		—		—		—		(7,156	)		(7,156	)
Balances at March 31, 2019		20,445	$	20	$	288,911	$	(29,879	)	$	259,052

Balances at December 31, 2019		20,445	$	20	$	288,850	$	(39,513	)	$	249,357
Net investment income		—		—		—		6,782			6,782
Net realized gain (loss)		—		—		—		75			75
Net change in unrealized gain (loss)		—		—		—		(43,707	)		(43,707	)
Distributions to stockholders		—		—		—		(7,155	)		(7,155	)
Balances at March 31, 2020		20,445	$	20	$	288,850	$	(83,518	)	$	205,352

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

	Three months ended March 31,
	2020			2019

Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	(36,850	)	$	7,441
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash provided by (used in) operating activities:
Net realized (gain) loss on investments		(94	)		—
Net realized (gain) loss on foreign currency forward contracts		4			8
Net realized (gain) loss on foreign currency and other transactions		15			1
Net change in unrealized (gain) loss on investments		45,149			(857	)
Net change in unrealized (gain) loss on foreign currency forward contracts		(98	)		65
Net change in unrealized (gain) loss on foreign currency and other transactions		(1,344	)		416
Payment-in-kind interest income		(1,076	)		(1,054	)
Net accretion of discounts and amortization of premiums		(344	)		(426	)
Purchases of investments		(71,088	)		(70,122	)
Proceeds from principal payments, sales of investments and settlement of forward contracts		52,843			29,127
Amortization of deferred financing costs		484			433
Changes in operating assets and liabilities:
Interest receivable		(879	)		(1,202	)
Other assets		(264	)		104
Interest payable		(956	)		(618	)
Management fees payable		(200	)		203
Incentive fees payable		(1,374	)		1,319
Accounts payable and accrued expenses		(320	)		99
Directors' fees payable		35			35
Net cash provided by (used in) operating activities		(16,357	)		(35,028	)

Cash flows from financing activities:
Borrowings on revolving credit facility		51,700			210,850
Repayments of revolving credit facility		(38,600	)		(200,950	)
Proceeds from 2023 Notes		—			40,000
Payments of deferred financing costs		—			(3,436	)
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively		(7,155	)		(7,156	)
Net cash provided by (used in) financing activities		5,945			39,308

Net increase (decrease) in Cash and Restricted Cash		(10,412	)		4,280
Effect of foreign currency exchange rates		(19	)		(1	)
Cash and Restricted Cash, beginning of period		29,643			17,726
Cash and Restricted Cash, end of period	$	19,212		$	22,005

Supplemental disclosure of cash flow information:
Cash interest paid during the period	$	5,294		$	4,845
Cash paid (refund received) for excise taxes during the period	$	85		$	130

The following tables provide a reconciliation of cash and restricted cash reported on the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:

	March 31, 2020		December 31, 2019
Cash	$	9,320	$	2,234
Restricted cash		9,892		27,409
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows	$	19,212	$	29,643

	March 31, 2019		December 31, 2018
Cash	$	4,690	$	3,744
Restricted cash		17,315		13,982
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows	$	22,005	$	17,726

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate	Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Automotive
Hastings Manufacturing Company	L+10.25%	9.25% Cash/ 2.00% PIK	4/24/2018	4/24/2023		2,812	$	2,773	$	2,709		1.3	%
Magneto & Diesel Acquisition, Inc.	L+5.50%	6.50%	12/18/2018	12/18/2023		4,937		4,869		4,671		2.3	%
Magneto & Diesel Acquisition, Inc. (Revolver) ^(f)	L+5.50%	6.50%	12/18/2018	12/18/2023		500		250		236		0.1	%
						8,249		7,892		7,616		3.7	%
Banking, Finance, Insurance & Real Estate
777 SPV I, LLC (Delayed Draw) ^{(g) (h)}	L+8.50%	10.25%	4/15/2019	4/14/2023		5,204		5,152		5,217		2.5	%
Echelon Funding I, LLC ^(h)	L+10.25%	11.83%	12/31/2019	1/11/2021		2,004		2,004		2,004		1.0	%
Echelon Funding I, LLC (Delayed Draw) ^{(f) (g) (h)}	L+10.25%	11.83%	2/24/2017	1/11/2021		14,175		8,844		8,842		4.3	%
HFZ Capital Group, LLC ^(h)	L+12.50%	14.41%	10/20/2017	11/25/2020		18,000		18,000		17,800		8.7	%
HFZ Member RB Portfolio, LLC ^(h)	L+12.00%	13.91%	10/30/2018	10/29/2021		9,780		9,767		9,639		4.7	%
Kudu Investment Holdings, LLC ^(h)	L+6.25%	7.70%	12/23/2019	12/23/2025		5,500		5,407		5,372		2.6	%
Kudu Investment Holdings, LLC (Delayed Draw) ^{(f) (g) (h)}	L+6.25%	7.68%	12/23/2019	12/23/2025		3,667		1,158		1,131		0.6	%
Kudu Investment Holdings, LLC (Revolver) ^{(f) (h)}	L+6.25%	7.70%	12/23/2019	12/23/2025		482		—		—		0.0	%
Liftforward SPV II, LLC ^(h)	L+10.75%	11.74%	11/10/2016	11/10/2020		2,568		2,565		2,556		1.2	%
PKS Holdings, LLC ^(h)	L+15.00%	16.58%	11/30/2017	11/30/2022		1,645		1,514		1,661		0.8	%
PKS Holdings, LLC (Revolver) ^{(f) (h)}	L+15.00%	16.58%	11/30/2017	11/30/2022		80		—		—		0.0	%
TCP-NG (U.S.), LLC ^(h)	L+7.25%	8.75%	8/23/2019	8/22/2024		2,850		2,808		2,769		1.3	%
TCP-NG (U.S.), LLC (Revolver) ^{(f) (h)}	L+7.25%	8.75%	8/23/2019	8/22/2024		180		—		—		0.0	%
						66,135		57,219		56,991		27.7	%
Beverage, Food & Tobacco
California Pizza Kitchen, Inc.	L+6.00%	7.62%	8/19/2016	8/23/2022		6,755		6,724		3,415		1.6	%
LX/JT Intermediate Holdings, Inc. ⁽ⁱ⁾	L+6.00%	7.50%	3/11/2020	3/11/2025		10,000		9,801		9,800		4.8	%
LX/JT Intermediate Holdings, Inc. (Revolver) ^(f)	L+6.00%	7.50%	3/11/2020	3/11/2025		833		—		—		0.0	%
Toojay's Management, LLC	L+5.50%	6.50%	10/26/2018	10/26/2022		3,465		3,417		3,224		1.6	%
Toojay's Management, LLC	L+5.50%	6.50%	10/26/2018	10/26/2022		475		475		442		0.2	%
Toojay's Management, LLC (Revolver)	L+5.50%	6.50%	10/26/2018	10/26/2022		159		159		148		0.1	%
						21,687		20,576		17,029		8.3	%
Capital Equipment
MCP Shaw Acquisitionco, LLC ⁽ⁱ⁾	L+6.50%	8.11%	2/28/2020	11/28/2025		10,000		9,804		9,790		4.8	%
MCP Shaw Acquisitionco, LLC (Revolver)	L+6.50%	8.02%	2/28/2020	11/28/2025		1,784		1,784		1,746		0.8	%
						11,784		11,588		11,536		5.6	%
Chemicals, Plastics & Rubber
Midwest Composite Technologies, LLC ⁽ⁱ⁾	L+6.75%	7.75%	12/2/2019	8/31/2023		14,925		14,648		14,081		6.9	%
Midwest Composite Technologies, LLC	L+6.75%	7.75%	8/31/2018	8/31/2023		887		873		836		0.4	%
Midwest Composite Technologies, LLC (Delayed Draw) ^{(f) (g)}	L+6.75%	7.75%	8/31/2018	8/31/2023		509		59		56		0.0	%
Midwest Composite Technologies, LLC (Revolver)	L+6.75%	7.75%	8/31/2018	8/31/2023		90		90		85		0.0	%
Valudor Products, LLC	L+7.50%	8.50%	6/18/2018	6/19/2023		1,553		1,531		1,479		0.7	%
Valudor Products, LLC ^(j)	L+7.50%	8.50%	6/18/2018	6/19/2023		211		206		200		0.1	%
Valudor Products, LLC (Revolver) ^(f)	L+9.50%	10.50%	6/18/2018	6/19/2023		818		401		384		0.2	%
						18,993		17,808		17,121		8.3	%
Construction & Building
Cali Bamboo, LLC	L+7.00%	7.99%	7/10/2015	7/10/2020		7,834		7,817		7,161		3.5	%
Cali Bamboo, LLC (Revolver) ^(f)	L+7.00%	7.99%	7/10/2015	7/10/2020		2,165		930		850		0.4	%
Dude Solutions Holdings, Inc.	L+7.50%	8.57%	6/14/2019	6/13/2025		10,000		9,794		9,830		4.8	%
Dude Solutions Holdings, Inc. (Revolver) ^(f)	L+7.50%	8.57%	6/14/2019	6/13/2025		1,304		348		342		0.2	%
						21,303		18,889		18,183		8.9	%
Consumer Goods: Durable
Franchise Group Intermediate Holdco, LLC	L+9.00%	10.65%	2/24/2020	2/14/2025		4,000		3,922		3,852		1.9	%
Nova Wildcat Amerock, LLC	L+5.75%	6.75%	10/12/2018	10/12/2023		9,078		8,939		8,785		4.3	%
Nova Wildcat Amerock, LLC (Revolver) ^(f)	L+5.75%	6.75%	10/12/2018	10/12/2023		931		466		451		0.2	%
Parterre Flooring & Surface Systems, LLC ⁽ⁱ⁾	L+9.00%	10.00%	8/22/2017	8/22/2022		7,920		7,835		6,130		3.0	%
Parterre Flooring & Surface Systems, LLC (Revolver)	L+9.00%	10.00%	8/22/2017	8/22/2022		696		696		539		0.3	%
						22,625		21,858		19,757		9.7	%
Consumer Goods: Non-Durable
Quirch Foods Holdings, LLC	L+6.00%	6.96%	2/14/2019	12/19/2025		1,975		1,958		1,728		0.8	%
						1,975		1,958		1,728		0.8	%
Energy: Oil & Gas
BJ Services, LLC	L+7.00%	8.50%	1/28/2019	1/3/2023		4,275		4,243		4,203		2.0	%
						4,275		4,243		4,203		2.0	%
Environmental Industries
StormTrap, LLC	L+5.50%	6.50%	12/10/2018	12/8/2023		7,920		7,810		7,400		3.6	%
StormTrap, LLC (Revolver) ^(f)	L+5.50%	6.50%	12/10/2018	12/8/2023		432		—		—		0.0	%
Synergy Environmental Corporation ⁽ⁱ⁾	L+8.00%	8.99%	4/29/2016	9/30/2021		2,893		2,872		2,852		1.4	%
Synergy Environmental Corporation ⁽ⁱ⁾	L+8.00%	8.99%	4/29/2016	9/30/2021		484		480		477		0.2	%
Synergy Environmental Corporation	L+8.00%	8.99%	4/29/2016	9/30/2021		827		827		815		0.4	%
Synergy Environmental Corporation (Revolver) ^(f)	L+8.00%	8.99%	4/29/2016	9/30/2021		671		270		266		0.1	%
						13,227		12,259		11,810		5.7	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity		Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Healthcare & Pharmaceuticals
American Optics Holdco, Inc. ^{(h) (k)}	L+7.00%	8.00%		9/13/2017	9/13/2022			4,210	$	4,163	$	4,184		2.0	%
American Optics Holdco, Inc. ^{(h) (k)}	L+7.00%	8.00%		9/13/2017	9/13/2022			1,637		1,616		1,627		0.8	%
American Optics Holdco, Inc. (Revolver) ^{(f) (h) (k)}	L+7.00%	8.00%		9/13/2017	9/13/2022			440		—		—		0.0	%
American Optics Holdco, Inc. (Revolver) ^{(f) (h) (k)}	L+7.00%	8.00%		9/13/2017	9/13/2022			440		—		—		0.0	%
Apotheco, LLC	L+5.50%	6.50%		4/8/2019	4/8/2024			3,474		3,415		3,233		1.6	%
Apotheco, LLC (Delayed Draw) ^{(f) (g)}	L+5.50%	6.50%		4/8/2019	4/8/2024			1,647		—		—		0.0	%
Apotheco, LLC (Revolver)	L+5.50%	6.50%		4/8/2019	4/8/2024			909		909		846		0.4	%
Familia Dental Group Holdings, LLC ⁽ⁱ⁾	L+8.75%	9.00% Cash/ 0.75% PIK		4/8/2016	4/8/2021			5,030		5,008		4,438		2.2	%
Familia Dental Group Holdings, LLC	L+8.75%	9.00% Cash/ 0.75% PIK		4/8/2016	4/8/2021			484		484		427		0.2	%
Familia Dental Group Holdings, LLC (Revolver) ^(f)	L+8.75%	9.00% Cash/ 0.75% PIK		4/8/2016	4/8/2021			573		373		329		0.2	%
Rockdale Blackhawk, LLC (DIP Facility)	n/a	15.10%		8/30/2018	n/a	_(l)		198		198		198		0.1	%
Rockdale Blackhawk, LLC (DIP Facility)	n/a	15.10%		8/6/2018	n/a	_(l)		8,877		8,877		10,169		5.0	%
Rockdale Blackhawk, LLC	L+13.00%	14.00%	^(m)	3/31/2015	n/a	_(l)		10,923		10,465		19,188		9.3	%
								38,842		35,508		44,639		21.8	%
High Tech Industries
Mindbody, Inc.	L+7.00%	8.00%		2/15/2019	2/14/2025			6,333		6,229		6,023		2.9	%
Mindbody, Inc. (Revolver)	L+7.00%	8.07%		2/15/2019	2/14/2025			667		667		634		0.3	%
Mnine Holdings, Inc.	P+7.75%	11.00%		11/2/2018	11/2/2023			10,587		10,463		10,303		5.0	%
Mnine Holdings, Inc. (Revolver) ^(f)	P+3.00%	6.25%		1/17/2020	11/2/2023			533		20		18		0.0	%
Newforma, Inc. ⁽ⁱ⁾	L+5.50%	6.95%		6/30/2017	6/30/2022			13,157		13,057		13,048		6.4	%
Newforma, Inc. (Revolver) ^(f)	L+5.50%	6.95%		6/30/2017	6/30/2022			1,250		—		—		0.0	%
Planful, Inc.	L+6.00%	7.58%		12/28/2018	12/28/2023			9,500		9,349		9,239		4.5	%
Planful, Inc. (Revolver)	L+6.00%	7.00%		12/28/2018	12/28/2023			442		442		430		0.2	%
Prototek Sheetmetal Fabrication, LLC	L+7.50%	8.50%		6/27/2019	12/12/2022			1,592		1,566		1,550		0.8	%
Prototek Sheetmetal Fabrication, LLC	L+7.50%	8.50%		12/11/2017	12/12/2022			3,351		3,311		3,263		1.6	%
Prototek Sheetmetal Fabrication, LLC	L+7.50%	8.50%		12/11/2017	12/12/2022			2,289		2,289		2,230		1.1	%
Prototek Sheetmetal Fabrication, LLC (Revolver)	L+7.50%	8.50%		12/11/2017	12/12/2022			233		233		227		0.1	%
Recorded Future, Inc.	L+6.25%	7.25%		7/3/2019	7/3/2025			7,333		7,198		7,347		3.6	%
Recorded Future, Inc. (Delayed Draw) ^{(f) (g)}	L+6.25%	7.25%		7/3/2019	7/3/2025			587		—		—		0.0	%
Recorded Future, Inc. (Revolver) ^(f)	L+6.25%	7.25%		7/3/2019	7/3/2025			880		587		587		0.3	%
RPL Bidco Limited ^{(h) (k) (n)}	L+7.50%	8.23%		11/9/2017	11/9/2023			13,272		14,008		12,750		6.2	%
RPL Bidco Limited ^{(h) (k) (n)}	L+7.50%	8.23%		5/22/2018	11/9/2023			1,615		1,639		1,549		0.8	%
RPL Bidco Limited (Revolver) ^{(h) (k) (n)}	L+7.50%	8.56%		11/9/2017	11/9/2023			497		497		477		0.2	%
								74,118		71,555		69,675		34.0	%
Media: Advertising, Printing & Publishing
AdTheorent, Inc.	L+8.50%	10.08%		12/22/2016	12/22/2021			3,335		3,309		3,275		1.6	%
Destination Media, Inc. ⁽ⁱ⁾	L+5.50%	6.50%		4/7/2017	4/7/2022			4,624		4,592		4,554		2.2	%
Destination Media, Inc. (Revolver) ^(f)	L+5.50%	6.50%		4/7/2017	4/7/2022			542		434		427		0.2	%
MC Sign Lessor Corp.	L+7.00%	8.58%		12/22/2017	8/30/2024			15,681		15,606		15,123		7.4	%
MC Sign Lessor Corp. (Revolver) ^(f)	L+7.00%	8.58%		12/22/2017	8/30/2024			3,490		349		337		0.2	%
XanEdu Publishing, Inc.	L+6.50%	7.50%		1/28/2020	1/28/2025			1,900		1,863		1,885		0.9	%
XanEdu Publishing, Inc. (Revolver) ^(f)	L+6.50%	7.50%		1/28/2020	1/28/2025			495		494		490		0.2	%
								30,067		26,647		26,091		12.7	%
Media: Broadcasting & Subscription
Vice Group Holding, Inc.	L+12.00%	5.92% Cash/ 8.00% PIK		5/2/2019	11/2/2022			1,276		1,266		1,257		0.6	%
Vice Group Holding, Inc.	L+12.00%	5.92% Cash/ 8.00% PIK		11/4/2019	11/2/2022			245		241		241		0.1	%
Vice Group Holding, Inc.	L+12.00%	13.77%		5/2/2019	11/2/2022			400		400		394		0.2	%
Vice Group Holding, Inc. (Delayed Draw) ^{(f) (g)}	L+12.00%	13.77%		5/2/2019	11/2/2022			160		—		—		0.0	%
								2,081		1,907		1,892		0.9	%
Media: Diversified & Production
Attom Intermediate Holdco, LLC	L+5.75%	6.75%		1/4/2019	1/4/2024			1,975		1,944		1,928		0.9	%
Attom Intermediate Holdco, LLC (Revolver)	L+5.75%	6.75%		1/4/2019	1/4/2024			320		320		312		0.2	%
Crownpeak Technology, Inc.	L+6.25%	7.83%		2/28/2019	2/28/2024			4,000		3,935		3,905		1.9	%
Crownpeak Technology, Inc.	L+6.25%	7.83%		2/28/2019	2/28/2024			60		60		59		0.0	%
Crownpeak Technology, Inc. (Revolver) ^(f)	L+6.25%	7.83%		2/28/2019	2/28/2024			167		—		—		0.0	%
								6,522		6,259		6,204		3.0	%
Retail
Bluestem Brands, Inc.	P+6.50%	9.75%	^(m)	6/26/2015	11/6/2020			2,275		2,272		1,353		0.7	%
Forman Mills, Inc. ⁽ⁱ⁾	L+9.50%	8.50% Cash/ 2.00% PIK		1/14/2020	10/4/2021			1,308		1,308		1,278		0.6	%
Forman Mills, Inc. ⁽ⁱ⁾	L+9.50%	8.50% Cash/ 2.00% PIK		10/4/2016	10/4/2021			744		738		727		0.4	%
Forman Mills, Inc. ⁽ⁱ⁾	L+9.50%	8.50% Cash/ 2.00% PIK		10/4/2016	10/4/2021			7,459		7,405		4,587		2.2	%
LuLu's Fashion Lounge, LLC	L+9.00%	10.07%		8/21/2017	8/29/2022			4,156		4,088		3,554		1.7	%
The Worth Collection, Ltd. ⁽ⁱ⁾	L+8.50%	9.49%	^(m)	9/29/2016	9/29/2021			10,587		10,248		958		0.5	%
								26,529		26,059		12,457		6.1	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate	Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Services: Business
Arcserve (USA), LLC	L+5.50%	7.41%	5/1/2019	5/1/2024		4,724	$	4,643	$	4,538		2.2	%
Atlas Sign Industries of FLA, LLC ⁽ⁱ⁾	L+11.50%	11.50% Cash/ 1.00% PIK	5/14/2018	5/15/2023		3,536		3,341		3,170		1.5	%
Burroughs, Inc. ⁽ⁱ⁾	L+8.00%	9.08% Cash/ 0.50% PIK	12/22/2017	12/22/2022		5,722		5,665		5,371		2.6	%
Burroughs, Inc. (Revolver) ^(f)	L+8.00%	9.08% Cash/ 0.50% PIK	12/22/2017	12/22/2022		1,219		1,167		1,095		0.5	%
Certify, Inc.	L+5.75%	6.75%	2/28/2019	2/28/2024		9,000		8,888		8,905		4.3	%
Certify, Inc. (Delayed Draw) ^{(f) (g)}	L+5.75%	6.75%	2/28/2019	2/28/2024		1,227		818		810		0.4	%
Certify, Inc. (Revolver) ^(f)	L+5.75%	6.75%	2/28/2019	2/28/2024		409		61		61		0.0	%
HS4 Acquisitionco, Inc.	L+6.75%	8.20%	7/9/2019	7/9/2025		10,050		9,866		9,738		4.8	%
HS4 Acquisitionco, Inc. (Revolver) ^(f)	L+6.75%	7.75%	7/9/2019	7/9/2025		817		470		455		0.2	%
IT Global Holding, LLC	L+9.00%	10.00%	11/15/2018	11/10/2023		10,172		10,010		9,648		4.7	%
IT Global Holding, LLC	L+9.00%	10.00%	7/19/2019	11/10/2023		3,791		3,723		3,596		1.8	%
IT Global Holding, LLC (Revolver)	L+9.00%	10.00%	11/15/2018	11/10/2023		875		875		830		0.5	%
Kaseya Traverse, Inc.	L+7.00%	5.91% Cash/ 3.00% PIK	5/3/2019	5/2/2025		6,475		6,360		6,185		3.0	%
Kaseya Traverse, Inc. (Delayed Draw) ^{(f) (g)}	L+7.00%	5.91% Cash/ 3.00% PIK	5/3/2019	5/2/2025		723		94		90		0.0	%
Kaseya Traverse, Inc. (Delayed Draw) ^{(f) (g)}	L+7.00%	5.91% Cash/ 3.00% PIK	3/4/2020	3/4/2022		289		—		—		0.0	%
Kaseya Traverse, Inc. (Revolver) ^(f)	L+6.50%	7.50%	5/3/2019	5/2/2025		506		501		479		0.3	%
Madison Logic, Inc. ⁽ⁱ⁾	L+7.50%	8.49%	11/30/2016	11/30/2021		9,561		9,482		9,341		4.5	%
Madison Logic, Inc. (Revolver) ^(f)	L+7.50%	8.49%	11/30/2016	11/30/2021		988		—		—		0.0	%
RedZone Robotics, Inc.	L+8.25%	7.75% Cash/ 1.50% PIK	6/1/2018	6/5/2023		621		612		558		0.3	%
RedZone Robotics, Inc. (Revolver) ^(f)	L+6.75%	7.75%	6/1/2018	6/5/2023		158		—		—		0.0	%
Security Services Acquisition Sub Corp. ⁽ⁱ⁾	L+6.00%	7.00%	2/15/2019	2/15/2024		3,465		3,410		3,422		1.7	%
Security Services Acquisition Sub Corp. (Delayed Draw) ^{(f) (g) (i)}	L+6.00%	7.00%	2/15/2019	2/15/2024		2,487		1,758		1,736		0.9	%
Security Services Acquisition Sub Corp. (Delayed Draw) ^{(f) (g) (i)}	L+6.00%	7.00%	2/15/2019	2/15/2024		2,184		1,064		1,051		0.5	%
Security Services Acquisition Sub Corp. (Revolver)	L+6.00%	7.00%	2/15/2019	2/15/2024		1,563		1,563		1,543		0.8	%
TRP Construction Group, LLC ⁽ⁱ⁾	L+6.50%	7.50%	10/5/2017	10/5/2022		7,860		7,773		7,612		3.7	%
TRP Construction Group, LLC	L+6.50%	7.50%	9/5/2018	10/5/2022		6,657		6,657		6,447		3.1	%
TRP Construction Group, LLC (Revolver)	L+6.50%	7.50%	10/5/2017	10/5/2022		2,133		2,133		2,066		1.0	%
VPS Holdings, LLC	L+7.00%	8.00%	10/5/2018	10/4/2024		4,506		4,431		4,204		2.0	%
VPS Holdings, LLC	L+7.00%	8.00%	10/5/2018	10/4/2024		3,675		3,675		3,428		1.7	%
VPS Holdings, LLC (Revolver) ^(f)	L+7.00%	8.00%	10/5/2018	10/4/2024		1,000		100		93		0.0	%
						106,393		99,140		96,472		47.0	%
Services: Consumer
Mammoth Holdings, LLC	L+6.00%	7.91%	10/16/2018	10/16/2023		1,975		1,945		1,950		1.0	%
Mammoth Holdings, LLC	L+6.00%	7.91%	10/16/2018	10/16/2023		4,146		4,146		4,094		2.0	%
Mammoth Holdings, LLC (Revolver)	L+6.00%	7.00%	10/16/2018	10/16/2023		500		500		494		0.2	%
						6,621		6,591		6,538		3.2	%
Wholesale
Nearly Natural, Inc. ⁽ⁱ⁾	L+7.00%	8.45%	12/15/2017	12/15/2022		6,816		6,735		6,491		3.2	%
Nearly Natural, Inc. (Delayed Draw) ^{(f) (g) (i)}	L+7.00%	8.45%	8/28/2019	12/15/2022		1,915		1,390		1,323		0.6	%
Nearly Natural, Inc. (Revolver)	L+7.00%	8.45%	12/15/2017	12/15/2022		1,522		1,522		1,449		0.7	%
						10,253		9,647		9,263		4.5	%
Total Non-Controlled/Non-Affiliate Senior Secured Loans						491,679		457,603		439,205		213.9	%

Unitranche Secured Loans ^(o)
Chemicals, Plastics & Rubber
MFG Chemical, LLC ⁽ⁱ⁾	L+6.00%	6.99%	6/23/2017	6/23/2022		9,232		9,161		8,383		4.1	%
MFG Chemical, LLC	L+6.00%	6.99%	3/15/2018	6/23/2022		985		985		894		0.4	%
						10,217		10,146		9,277		4.5	%
Consumer Goods: Durable
RugsUSA, LLC	L+6.50%	7.96%	5/2/2018	4/28/2023		4,000		3,973		3,888		1.9	%
						4,000		3,973		3,888		1.9	%
Healthcare & Pharmaceuticals
Priority Ambulance, LLC ^(p)	L+6.50%	7.95%	7/18/2018	4/12/2022		10,015		10,015		9,850		4.8	%
Priority Ambulance, LLC ^(q)	L+6.50%	7.95%	4/12/2017	4/12/2022		1,253		1,235		1,233		0.6	%
Priority Ambulance, LLC (Delayed Draw) ^{(f) (g)}	L+6.50%	7.95%	12/13/2018	4/12/2022		2,474		685		674		0.3	%
						13,742		11,935		11,757		5.7	%
High Tech Industries
Energy Services Group, LLC	L+8.42%	9.42%	5/4/2017	5/4/2022		4,115		4,088		4,006		2.0	%
Energy Services Group, LLC ^{(h) (n)}	L+8.42%	9.42%	5/4/2017	5/4/2022		4,605		4,880		4,515		2.2	%
Energy Services Group, LLC	L+8.42%	9.42%	5/4/2017	5/4/2022		1,171		1,157		1,140		0.6	%
WillowTree, LLC	L+5.00%	6.00%	10/9/2018	10/9/2023		7,900		7,795		7,683		3.7	%
						17,791		17,920		17,344		8.5	%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans						45,750		43,974		42,266		20.6	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity		Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Junior Secured Loans
Beverage, Food & Tobacco
CSM Bakery Supplies, LLC	L+7.75%	9.62%		5/23/2013	7/5/2021			5,792	$	5,792	$	4,518		2.2	%
								5,792		5,792		4,518		2.2	%
Capital Equipment
ALTA Enterprises, LLC	L+8.00%	9.80%		2/14/2020	8/13/2025			4,000		3,863		3,889		1.9	%
								4,000		3,863		3,889		1.9	%
High Tech Industries
Micro Holdings Corp.	L+7.50%	8.57%		8/16/2017	8/18/2025			3,000		2,976		2,535		1.2	%
								3,000		2,976		2,535		1.2	%
Services: Consumer
Education Corporation of America	L+11.00%	6.95% Cash/ 5.50% PIK	^(m)	9/3/2015	n/a	^(l)		833		831		762		0.4	%
								833		831		762		0.4	%
Total Non-Controlled/Non-Affiliate Junior Secured Loans								13,625		13,462		11,704		5.7	%

Equity Securities ^{(r) (s)}
Banking, Finance, Insurance & Real Estate
PKS Holdings, LLC (warrant to purchase up to 0.8% of the equity) ^(h)	—	—	^(t)	11/30/2017	11/30/2027			—		116		428		0.2	%
										116		428		0.2	%
Capital Equipment
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units)	—	—	^(t)	2/28/2020	—			—		119		109		0.1	%
										119		109		0.1	%
Chemicals, Plastics & Rubber
Valudor Products, LLC (501,014 Class A-1 units)	n/a	10.00% PIK		6/18/2018	—			—		501		—		0.0	%
										501		—		0.0	%
High Tech Industries
Answers Finance, LLC (76,539 shares of common stock)	—	—	^(t)	4/14/2017	—			—		2,344		54		0.0	%
Planful, Inc. (441,860 Class A units)	—	—	^(t)	12/28/2018	—			—		442		479		0.2	%
Recorded Future, Inc. (80,080 Class A units) ^(u)	—	—	^(t)	7/3/2019	—			—		80		85		0.1	%
										2,866		618		0.3	%
Media: Advertising, Printing & Publishing
AdTheorent, Inc. (128,866 Class A voting units)	—	—	^(t)	12/22/2016	—			—		129		397		0.2	%
MC Sign Lessor Corp. (686 shares of common units)	—	—	^(t)	8/30/2019	—			—		872		645		0.3	%
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) ^{(h) (k)}	—	—	^(t)	9/18/2015	9/18/2025			—		—		188		0.1	%
XanEdu Publishing, Inc. (49,479 Class A units)	n/a	8.00% PIK		1/28/2020	—			—		49		51		0.0	%
										1,050		1,281		0.6	%
Media: Diversified & Production
Attom Intermediate Holdco, LLC (260,000 Class A units)	—	—	^(t)	1/4/2019	—			—		260		246		0.1	%
										260		246		0.1	%
Retail
Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity)	—	—	^(t)	1/14/2020	1/14/2029			—		—		—		0.0	%
The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units)	—	—	^(t)	6/25/2013	—			—		87		63		0.0	%
The Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units)	—	—	^(t)	6/25/2013	—			—		—		—		0.0	%
										87		63		0.0	%
Services: Business
APCO Worldwide, Inc. (100 Class A voting common stock)	—	—	^(t)	11/1/2017	—			—		395		282		0.1	%
Atlas Sign Industries of FLA, LLC (warrant to purchase up to 0.8% of the equity)	—	—	^(t)	5/14/2018	5/14/2026			—		125		31		0.0	%
										520		313		0.1	%
Services: Consumer
Education Corporation of America - Series G Preferred Stock (8,333 shares)	n/a	12.00% PIK	^(m)	9/3/2015	—			—		7,492		5,117		2.5	%
										7,492		5,117		2.5	%
Wholesale
Nearly Natural, Inc. (152,174 Class A units)	—	—	^(t)	12/15/2017	—			—		152		144		0.1	%
										152		144		0.1	%
Total Non-Controlled/Non-Affiliate Equity Securities										13,163		8,319