10-Q 1 tm2029645-1_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 September 30, 2020

 

OR

 

¨ 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 November 3, 2020, the registrant had 21,303,540 shares of common stock, $0.001 par value, outstanding.

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART I. FINANCIAL INFORMATION 3
   
Item 1. Consolidated Financial Statements 3
     
  Consolidated Statements of Assets and Liabilities as of September 30, 2020 (unaudited) and December 31, 2019 3
     
  Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2020 and 2019 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (unaudited) 6
     
  Consolidated Schedules of Investments as of September 30, 2020 (unaudited) and December 31, 2019 7
     
  Notes to Consolidated Financial Statements (unaudited) 24
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 54
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 78
     
Item 4. Controls and Procedures 79
     
PART II. OTHER INFORMATION 80
     
Item 1. Legal Proceedings 80
     
Item 1A. Risk Factors 80
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 84
     
Item 3. Defaults Upon Senior Securities 84
     
Item 4. Mine Safety Disclosures 84
     
Item 5. Other Information 84
     
Item 6. Exhibits 84
     
Signatures   85

 

2 

 

 

Part I. Financial Information

Item 1. Consolidated Financial Statements

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

 

   September 30, 2020   December 31, 2019 
    (unaudited)      
ASSETS          
Investments, at fair value:          
Non-controlled/non-affiliate company investments  $406,702   $513,959 
Non-controlled affiliate company investments   78,041    59,860 
Controlled affiliate company investments   37,524    42,412 
Total investments, at fair value (amortized cost of: $576,340 and $634,736, respectively)   522,267    616,231 
Cash   4,405    2,234 
Restricted cash   19,073    27,409 
Interest receivable   5,822    8,689 
Other assets   1,159    495 
Total assets   552,726    655,058 
           
LIABILITIES          
Debt:          
Revolving credit facility   99,351    180,294 
2023 Notes   109,000    109,000 
SBA debentures payable   115,000    115,000 
Total debt   323,351    404,294 
Less: Unamortized deferred financing costs   (7,566)   (8,053)
Total debt, less unamortized deferred financing costs   315,785    396,241 
Interest payable   1,691    2,763 
Unrealized loss on foreign currency forward contracts   40    59 
Management fees payable   2,414    2,751 
Incentive fees payable   —    1,374 
Accounts payable and accrued expenses   2,075    2,513 
Directors' fees payable   38    — 
Total liabilities   322,043    405,701 
Net assets  $230,683   $249,357 
           
Commitments and contingencies (See Note 11)          
           
ANALYSIS OF NET ASSETS          
Common stock, $0.001 par value, 100,000 shares authorized, 21,304 and 20,445 shares issued and outstanding, respectively  $21   $20 
Capital in excess of par value   295,344    288,850 
Accumulated undistributed (overdistributed) earnings   (64,682)   (39,513)
Total net assets  $230,683   $249,357 
           
Net asset value per share  $10.83   $12.20 

 

See Notes to Consolidated Financial Statements.

 

3 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

   Three months ended September 30,   Nine months ended September 30, 
   2020   2019   2020   2019 
Investment income:                    
Non-controlled/non-affiliate company investments:                    
Interest income  $9,992   $14,308   $36,800   $40,881 
Payment-in-kind interest income   553    156    1,479    369 
Dividend income   5    13    (71)   39 
Fee income   26    57    3,047    686 
Total investment income from non-controlled/non-affiliate company investments   10,576    14,534    41,255    41,975 
Non-controlled affiliate company investments:                    
Interest income   659    231    894    1,921 
Payment-in-kind interest income   1,010    1,465    3,624    3,567 
Dividend income   40    —    106    — 
Total investment income from non-controlled affiliate company investments   1,709    1,696    4,624    5,488 
Controlled affiliate company investments:                    
Dividend income   1,100    1,100    3,150    2,745 
Total investment income from controlled affiliate company investments   1,100    1,100    3,150    2,745 
Total investment income   13,385    17,330    49,029    50,208 
                     
Operating expenses:                    
Interest and other debt financing expenses   4,358    5,549    13,743    15,010 
Base management fees   2,414    2,785    7,399    8,029 
Incentive fees   —    1,469    —    4,237 
Professional fees   201    262    738    823 
Administrative service fees   321    322    973    988 
General and administrative expenses   284    281    729    793 
Directors' fees   38    40    113    115 
Expenses before incentive fee waiver   7,616    10,708    23,695    29,995 
Incentive fee waiver   —    (616)   —    (1,182)
Total expenses, net of incentive fee waiver   7,616    10,092    23,695    28,813 
Net investment income before income taxes   5,769    7,238    25,334    21,395 
Income taxes, including excise taxes   125    —    272    10 
Net investment income   5,644    7,238    25,062    21,385 
                     
Net gain (loss):                    
Net realized gain (loss):                    
Non-controlled/non-affiliate company investments   (10)   11    2,545    46 
Foreign currency forward contracts   (15)   16    3    10 
Foreign currency and other transactions   3    (1)   (13)   (3)
Net realized gain (loss)   (22)   26    2,535    53 
                     
Net change in unrealized gain (loss):                    
Non-controlled/non-affiliate company investments   3,048    (1,568)   (22,527)   (2,029)
Non-controlled affiliate company investments   5,456    (2,355)   (8,153)   (5,163)
Controlled affiliate company investments   1,969    (350)   (4,888)   85 
Foreign currency forward contracts   (55)   60    19    67 
Foreign currency and other transactions   (855)   602    521    688 
Net change in unrealized gain (loss)   9,563    (3,611)   (35,028)   (6,352)
                     
Net gain (loss)   9,541    (3,585)   (32,493)   (6,299)
                     
Net increase (decrease) in net assets resulting from operations  $15,185   $3,653   $(7,431)  $15,086 
                     
Per common share data:                    
Net investment income per share - basic and diluted  $0.26   $0.35   $1.21   $1.05 
Net increase (decrease) in net assets resulting from operations per share - basic and diluted  $0.71   $0.17   $(0.36)  $0.73 
Weighted average common shares outstanding - basic and diluted   21,303    20,445    20,797    20,445 

 

See Notes to Consolidated Financial Statements. 

4 

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(in thousands)

 

   Common Stock       Accumulated
undistributed		     
   Number of
shares		   Par
value		   Capital in excess
of par value		   (overdistributed)
earnings		   Total
net assets		 
Balances at June 30, 2019   20,445   $20   $288,911   $(33,043)  $255,888 
Net investment income   —    —    —    7,238    7,238 
Net realized gain (loss)   —    —    —    26    26 
Net change in unrealized gain (loss)   —    —    —    (3,611)   (3,611)
Issuance of common stock, net of offering and underwriting costs   —    —    —    —    — 
Distributions to stockholders   —    —    —    (7,156)   (7,156)
Balances at September 30, 2019   20,445   $20   $288,911   $(36,546)  $252,385 
                          
Balances at June 30, 2020   21,270   $21   $295,116   $(74,541)  $220,596 
Net investment income   —    —    —    5,644    5,644 
Net realized gain (loss)   —    —    —    (22)   (22)
Net change in unrealized gain (loss)   —    —    —    9,563    9,563 
Issuance of common stock, net of offering and underwriting costs   34    —    228    —    228 
Distributions to stockholders   —    —    —    (5,326)   (5,326)
Balances at September 30, 2020   21,304   $21   $295,344   $(64,682)  $230,683 

 

   Common Stock       Accumulated
undistributed		     
   Number of
shares		   Par
value		   Capital in excess
of par value		   (overdistributed)
earnings		   Total
net assets		 
Balances at December 31, 2018   20,445   $20   $288,911   $(30,164)  $258,767 
Net investment income   —    —    —    21,385    21,385 
Net realized gain (loss)   —    —    —    53    53 
Net change in unrealized gain (loss)   —    —    —    (6,352)   (6,352)
Issuance of common stock, net of offering and underwriting costs   —    —    —    —    — 
Distributions to stockholders   —    —    —    (21,468)   (21,468)
Balances at September 30, 2019   20,445   $20   $288,911   $(36,546)  $252,385 
                          
Balances at December 31, 2019   20,445   $20   $288,850   $(39,513)  $249,357 
Net investment income   —    —    —    25,062    25,062 
Net realized gain (loss)   —    —    —    2,535    2,535 
Net change in unrealized gain (loss)   —    —    —    (35,028)   (35,028)
Issuance of common stock, net of offering and underwriting costs   859    1    6,494    —    6,495 
Distributions to stockholders   —    —    —    (17,738)   (17,738)
Balances at September 30, 2020   21,304   $21   $295,344   $(64,682)  $230,683 

 

See Notes to Consolidated Financial Statements.

 

5 

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

   Nine months ended September 30, 
   2020   2019 
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $(7,431)  $15,086 
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   (2,545)   (46)
Net realized (gain) loss on foreign currency forward contracts   (3)   (10)
Net realized (gain) loss on foreign currency and other transactions   13    3 
Net change in unrealized (gain) loss on investments   35,568    7,107 
Net change in unrealized (gain) loss on foreign currency forward contracts   (19)   (67)
Net change in unrealized (gain) loss on foreign currency and other transactions   (521)   (688)
Payment-in-kind interest income   (5,103)   (3,936)
Net accretion of discounts and amortization of premiums   (960)   (1,180)
Purchases of investments   (96,451)   (188,363)
Proceeds from principal payments, sales of investments and settlement of forward contracts   163,458    82,599 
Amortization of deferred financing costs   1,586    1,374 
Changes in operating assets and liabilities:          
Interest receivable   2,867    (2,940)
Other assets   (664)   116 
Interest payable   (1,072)   (763)
Management fees payable   (337)   467 
Incentive fees payable   (1,374)   853 
Accounts payable and accrued expenses   (438)   384 
Directors' fees payable   38    40 
Net cash provided by (used in) operating activities   86,612    (89,964)
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   56,700    309,250 
Repayments of revolving credit facility   (137,100)   (227,950)
Proceeds from 2023 Notes   —    40,000 
Payments of deferred financing costs   (1,099)   (3,616)
Proceeds from shares sold, net of offering and underwriting costs   6,495    — 
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively   (17,738)   (21,468)
Net cash provided by (used in) financing activities   (92,742)   96,216 
           
Net increase (decrease) in Cash and Restricted Cash   (6,130)   6,252 
Effect of foreign currency exchange rates   (35)   (3)
Cash and Restricted Cash, beginning of period   29,643    17,726 
Cash and Restricted Cash, end of period  $23,478   $23,975 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $13,171   $14,343 
Cash paid (refund received) for excise taxes during the period  $85   $(13)

 

 

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:

 

   September 30, 2020   December 31, 2019 
Cash  $4,405   $2,234 
Restricted cash   19,073    27,409 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows  $23,478   $29,643 

 

   September 30, 2019   December 31, 2018 
Cash  $3,199   $3,744 
Restricted cash   20,776    13,982 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows  $23,975   $17,726 

 

See Notes to Consolidated Financial Statements.

 

6 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

September 30, 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   2,853   $2,819   $2,743   1.2%
Magneto & Diesel Acquisition, Inc.   L+6.05%  7.10%  12/18/2018  12/18/2023   4,912    4,852    4,913   2.1%
Magneto & Diesel Acquisition, Inc.   L+6.05%  7.10%  7/6/2020  12/18/2023   1,933    1,896    1,940   0.9%
Magneto & Diesel Acquisition, Inc. (Revolver) (f)   L+6.05%  7.10%  12/18/2018  12/18/2023   500    —    —   0.0%
                 10,198    9,567    9,596   4.2%
Banking, Finance, Insurance & Real Estate                                
777 SPV I, LLC (Delayed Draw) (g) (h)   L+8.50%  10.25%  4/15/2019  4/14/2023   4,844    4,803    4,850   2.1%
Echelon Funding I, LLC (g)   L+10.25%  10.75%  12/31/2019  1/11/2021   1,113    1,113    1,116   0.5%
Echelon Funding I, LLC (Delayed Draw) (f) (g) (h)   L+10.25%  10.75%  2/24/2017  1/11/2021   14,175    1,690    1,695   0.8%
HFZ Capital Group, LLC (g)   L+12.50%  14.00%  10/20/2017  11/25/2020   18,000    18,000    17,705   7.7%
HFZ Member RB Portfolio, LLC (g)   L+12.00%  13.00%  10/30/2018  10/29/2021   9,780    9,771    9,710   4.2%
Kudu Investment Holdings, LLC (g)   L+5.75%  6.75%  12/23/2019  12/23/2025   5,500    5,413    5,555   2.4%
Kudu Investment Holdings, LLC (Delayed Draw) (f) (g) (h)   L+5.75%  6.75%  12/23/2019  12/23/2025   3,667    1,640    1,657   0.7%
Kudu Investment Holdings, LLC (Revolver) (f) (g)   L+5.75%  6.75%  12/23/2019  12/23/2025   482    —    —   0.0%
Liftforward SPV II, LLC (g)   L+10.75%  11.25%  11/10/2016  11/10/2020   2,192    2,192    2,044   0.9%
TCP-NG (U.S.), LLC (g)   L+10.25%  8.75% Cash/ 3.00% PIK   8/23/2019  8/22/2024   2,170    2,141    2,164   0.9%
                 61,923    46,763    46,496   20.2%
Beverage, Food & Tobacco                                
California Pizza Kitchen, Inc.   L+6.00%   7.00%(i)  8/19/2016  8/23/2022   6,755    6,729    2,060   0.9%
LX/JT Intermediate Holdings, Inc. (j)   L+6.00%   7.50%  3/11/2020  3/11/2025   9,821    9,643    9,650   4.2%
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 (ac)  n/a  n/a(i)   10/26/2018  10/26/2022   1,448    1,407    —   0.0%
Toojay's Management, LLC (ac)  n/a  n/a(i)   10/26/2018  10/26/2022   199    199    —   0.0%
Toojay's Management, LLC (Revolver) (ac)  n/a  n/a(i)   10/26/2018  10/26/2022   66    66    —   0.0%
                 19,122    18,044    11,710   5.1%
Capital Equipment                                
MCP Shaw Acquisitionco, LLC (j)   L+6.50%   7.50%  2/28/2020  11/28/2025   9,949    9,770    9,735   4.2%
MCP Shaw Acquisitionco, LLC (Revolver) (f)   L+6.50%   7.50%  2/28/2020  11/28/2025   1,784    —    —   0.0%
                 11,733    9,770    9,735   4.2%
Chemicals, Plastics & Rubber                                
Midwest Composite Technologies, LLC (j)   L+6.75%   7.75%  12/2/2019  8/31/2023   14,925    14,684    14,743   6.4%
Midwest Composite Technologies, LLC   L+6.75%   7.75%  8/31/2018  8/31/2023   887    875    876   0.4%
Midwest Composite Technologies, LLC (Delayed Draw) (f) (h)   L+6.75%   7.75%  8/31/2018  8/31/2023   509    179    177   0.1%
Midwest Composite Technologies, LLC (Revolver) (f)   L+6.75%   7.75%  8/31/2018  8/31/2023   90    —    —   0.0%
Valudor Products, LLC   L+7.50%   7.00% Cash/ 1.50% PIK   6/18/2018  6/19/2023   1,553    1,534    1,678   0.7%
Valudor Products, LLC (k)   L+7.50%   7.00% Cash/ 1.50% PIK   6/18/2018  6/19/2023   211    207    —   0.0%
Valudor Products, LLC (Revolver) (f)   L+9.50%   10.50%  6/18/2018  6/19/2023   818    483    459   0.2%
                 18,993    17,962    17,933   7.8%
Construction & Building                                
Cali Bamboo, LLC   L+9.50%   8.00% Cash/ 2.50% PIK   7/10/2015  3/31/2022   7,876    7,875    7,876   3.4%
Cali Bamboo, LLC (Revolver) (f)   L+9.50%   8.00% Cash/ 2.50% PIK   7/10/2015  3/31/2022   2,165    —    —   0.0%
Dude Solutions Holdings, Inc.   L+7.50%   8.50%  6/14/2019  6/13/2025   9,987    9,796    9,958   4.3%
Dude Solutions Holdings, Inc. (Revolver) (f)   L+7.50%   8.50%  6/14/2019  6/13/2025   1,304    348    347   0.2%
                 21,332    18,019    18,181   7.9%
Consumer Goods: Durable                                
Franchise Group Intermediate Holdco, LLC   L+8.00%   9.50%  2/24/2020  2/14/2025   3,867    3,797    3,764   1.6%
Nova Wildcat Amerock, LLC   L+5.75%   6.75%  10/12/2018  10/12/2023   9,032    8,911    9,021   3.9%
Nova Wildcat Amerock, LLC (Revolver) (f)   L+5.75%   6.75%  10/12/2018  10/12/2023   931    —    —   0.0%
Parterre Flooring & Surface Systems, LLC (j)   L+9.00%   10.00%(i)  8/22/2017  8/22/2022   7,920    7,837    5,188   2.3%
Parterre Flooring & Surface Systems, LLC (Revolver)   L+9.00%   10.00%(i)  8/22/2017  8/22/2022   696    696    456   0.2%
                 22,446    21,241    18,429   8.0%

 

7 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

September 30, 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)		  
Consumer Goods: Non-Durable                                
Quirch Foods Holdings, LLC   L+5.75%   5.90%  2/14/2019  12/19/2025   1,965   $1,949   $1,936   0.8%
                 1,965    1,949    1,936   0.8%
Environmental Industries                                
StormTrap, LLC   L+5.50%   6.50%  12/10/2018  12/8/2023   7,860    7,764    7,794   3.4%
StormTrap, LLC (Revolver) (f)   L+5.50%   6.50%  12/10/2018  12/8/2023   432    —    —   0.0%
Synergy Environmental Corporation (j)   L+6.00%   6.50%  4/29/2016  9/30/2021   2,893    2,879    2,868   1.2%
Synergy Environmental Corporation (j)   L+6.00%   6.50%  4/29/2016  9/30/2021   484    482    480   0.2%
Synergy Environmental Corporation   L+6.00%   6.50%  4/29/2016  9/30/2021   827    827    820   0.4%
Synergy Environmental Corporation (Revolver) (f)   L+6.00%   6.50%  4/29/2016  9/30/2021   671    270    267   0.1%
                 13,167    12,222    12,229   5.3%
Healthcare & Pharmaceuticals                                
American Optics Holdco, Inc. (g) (l)   L+6.50%   7.50%  9/13/2017  9/13/2022   2,186    2,166    2,186   0.9%
American Optics Holdco, Inc. (g) (l)   L+6.50%   7.50%  9/13/2017  9/13/2022   1,637    1,620    1,637   0.7%
American Optics Holdco, Inc. (Revolver) (f) (g) (l)   L+6.50%   7.50%  9/13/2017  9/13/2022   220    —    —   0.0%
American Optics Holdco, Inc. (Revolver) (f) (g) (l)   L+6.50%   7.50%  9/13/2017  9/13/2022   440    —    —   0.0%
Apotheco, LLC   L+8.50%   6.50% Cash/ 3.00% PIK   4/8/2019  4/8/2024   3,514    3,461    3,222   1.4%
Apotheco, LLC (Revolver)   L+8.50%   6.50% Cash/ 3.00% PIK   4/8/2019  4/8/2024   920    920    843   0.3%
Familia Dental Group Holdings, LLC (j)   L+10.75%   10.50% Cash/ 0.75% PIK   4/8/2016  4/8/2021   5,049    5,037    4,770   2.1%
Familia Dental Group Holdings, LLC   L+10.75%   10.50% Cash/ 0.75% PIK   4/8/2016  4/8/2021   486    486    459   0.2%
Familia Dental Group Holdings, LLC (Revolver) (f)   L+10.75%   10.50% Cash/ 0.75% PIK   4/8/2016  4/8/2021   805    713    674   0.3%
Rockdale Blackhawk, LLC   n/a   n/a(m)  3/31/2015  n/a(n)  —    —    1,772   0.8%
                 15,257    14,403    15,563   6.7%
High Tech Industries                                
Mindbody, Inc.   L+8.50%   8.00% Cash/ 1.50% PIK   2/15/2019  2/14/2025   6,365    6,269    6,085   2.6%
Mindbody, Inc. (Revolver) (f)   L+8.00%   9.00%  2/15/2019  2/14/2025   667    —    —   0.0%
Newforma, Inc. (j)   L+5.00%   6.00%  6/30/2017  6/30/2022   11,993    11,920    11,953   5.2%

Newforma, Inc. (Revolver) (f)   L+5.00%   6.00%  6/30/2017  6/30/2022   1,250    —    —   0.0%
Planful, Inc.   L+6.00%   7.00%  12/28/2018  12/28/2023   9,500    9,366    9,381   4.1%
Planful, Inc. (Revolver) (f)   L+6.00%   7.00%  12/28/2018  12/28/2023   442    —    —   0.0%
RPL Bidco Limited  (g) (l) (o)   L+7.50%   8.00%  11/9/2017  11/9/2023   13,694    13,911    13,655   5.9%
RPL Bidco Limited (g) (l) (o)   L+7.50%   8.00%  5/22/2018  11/9/2023   1,680    1,639    1,675   0.7%
RPL Bidco Limited (Revolver) (f) (g) (l) (o)   L+7.50%   8.00%  11/9/2017  11/9/2023   517    —    —   0.0%
                 46,108    43,105    42,749   18.5%
Media: Advertising, Printing & Publishing                                
AdTheorent Holding Company, LLC   L+8.50%   9.00%  12/22/2016  12/22/2021   3,146    3,127    3,108   1.4%
Destination Media, Inc. (j)   L+5.50%   6.50%  4/7/2017  4/7/2022   4,425    4,400    4,352   1.9%
Destination Media, Inc. (Revolver)   L+5.50%   6.50%  4/7/2017  4/7/2022   542    542    533   0.2%
Stratus Unlimited, LLC (fka MC Sign Lessor Corp.)   L+7.00%   8.00%  12/22/2017  8/30/2024   15,602    15,533    15,050   6.5%
Stratus Unlimited, LLC (fka MC Sign Lessor Corp.) (Revolver) (f)   L+7.00%   8.00%  12/22/2017  8/30/2024   3,490    1,396    1,347   0.6%
XanEdu Publishing, Inc.   L+6.50%   7.50%  1/28/2020  1/28/2025   1,890    1,857    1,881   0.8%
XanEdu Publishing, Inc. (Revolver) (f)   L+6.50%   7.50%  1/28/2020  1/28/2025   495    494    491   0.2%
                 29,590    27,349    26,762   11.6%
Media: Broadcasting & Subscription                                
Vice Group Holding, Inc.   L+12.00%   5.50% Cash/ 8.00% PIK   5/2/2019  11/2/2022   1,328    1,320    1,343   0.6%
Vice Group Holding, Inc.   L+12.00%   5.50% Cash/ 8.00% PIK   11/4/2019  11/2/2022   255    251    258   0.1%
Vice Group Holding, Inc.   L+12.00%   5.50% Cash/ 8.00% PIK   5/2/2019  11/2/2022   416    416    421   0.2%
Vice Group Holding, Inc. (Delayed Draw) (f) (h)    L+12.00%   13.50%  5/2/2019  11/2/2022   160    —    —   0.0%
                 2,159    1,987    2,022   0.9%
Media: Diversified & Production                                
Attom Intermediate Holdco, LLC   L+5.75%   6.75%  1/4/2019  1/4/2024   1,965    1,938    1,916   0.9%
Attom Intermediate Holdco, LLC   L+7.50%   8.75%  6/25/2020  1/4/2024   479    470    493   0.2%
Attom Intermediate Holdco, LLC (Revolver) (f)   L+5.75%   6.75%  1/4/2019  1/4/2024   320    —    —   0.0%
Crownpeak Technology, Inc.   L+6.25%   7.25%  2/28/2019  2/28/2024   4,000    3,942    3,971   1.7%
Crownpeak Technology, Inc.   L+6.25%   7.25%  2/28/2019  2/28/2024   60    60    60   0.0%
Crownpeak Technology, Inc. (Revolver) (f)   L+6.25%   7.25%  2/28/2019  2/28/2024   167    —    —   0.0%
                 6,991    6,410    6,440   2.8%

 

8 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

September 30, 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)		  
Retail                                
BLST Operating Company, LLC (fka Bluestem Brands, Inc.)   L+8.50%   1.00% Cash/ 9.00% PIK(i)  8/28/2020  8/28/2025   1,259   $1,254   $567   0.2%
Forman Mills, Inc. (j)   L+9.50%   8.50% Cash/ 2.00% PIK   1/14/2020  10/4/2021   1,308    1,308    1,284   0.6%
Forman Mills, Inc. (j)   L+9.50%   8.50% Cash/ 2.00% PIK   10/4/2016  10/4/2021   744    740    730   0.3%
Forman Mills, Inc. (j)   L+9.50%   8.50% Cash/ 2.00% PIK   10/4/2016  10/4/2021   7,459    7,421    6,683   2.9%
LuLu's Fashion Lounge, LLC   L+9.50%   8.00% Cash/ 2.50% PIK   8/21/2017  8/29/2022   4,190    4,134    3,583   1.5%
The Worth Collection, Ltd. (j)   L+8.50%   9.00%(i)  9/29/2016  9/29/2021   10,587    10,248    120   0.1%
                 25,547    25,105    12,967   5.6%
Services: Business                                
Arcserve (USA), LLC   L+6.00%   7.00%  5/1/2019  5/1/2024   4,664    4,593    4,709   2.0%
Atlas Sign Industries of FLA, LLC (j)   L+11.50%   11.50% Cash/ 1.00% PIK   5/14/2018  5/15/2023   3,554    3,359    3,282   1.4%
Burroughs, Inc. (j)   L+7.50%   8.50%  12/22/2017  12/22/2022   5,726    5,681    5,726   2.5%
Burroughs, Inc. (Revolver) (f)   L+7.50%   8.50%  12/22/2017  12/22/2022   1,220    170    170   0.1%
Certify, Inc.   L+5.75%   6.75%  2/28/2019  2/28/2024   9,000    8,900    9,024   3.9%
Certify, Inc.   L+5.75%   6.75%  2/28/2019  2/28/2024   1,227    1,227    1,231   0.5%
Certify, Inc. (Revolver) (f)   L+5.75%   6.75%  2/28/2019  2/28/2024   409    —    —   0.0%
HS4 Acquisitionco, Inc.   L+6.75%   7.75%  7/9/2019  7/9/2025   10,050    9,880    9,849   4.3%
HS4 Acquisitionco, Inc. (Revolver) (f)   L+6.75%   7.75%  7/9/2019  7/9/2025   817    —    —   0.0%
IT Global Holding, LLC   L+9.00%   10.00%  11/15/2018  11/10/2023   10,041    9,900    9,935   4.3%
IT Global Holding, LLC   L+9.00%   10.00%  7/19/2019  11/10/2023   3,743    3,681    3,704   1.6%
IT Global Holding, LLC (Revolver)   L+9.00%   10.00%  11/15/2018  11/10/2023   875    875    875   0.4%
Madison Logic, Inc. (j)   L+8.00%   8.50%  11/30/2016  11/30/2021   9,440    9,384    9,430   4.1%
Madison Logic, Inc. (Revolver) (f)   L+8.00%   8.50%  11/30/2016  11/30/2021   988    —    —   0.0%
RedZone Robotics, Inc.   L+7.25%   7.75% Cash/ 0.50% PIK   6/1/2018  6/5/2023   619    612    578   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. (j)   L+6.00%   7.00%  2/15/2019  2/15/2024   3,447    3,399    3,427   1.5%
Security Services Acquisition Sub Corp. (Delayed Draw) (f) (h) (j)   L+6.00%   7.00%  2/15/2019  2/15/2024   2,478    1,749    1,738   0.8%
Security Services Acquisition Sub Corp. (Delayed Draw) (f) (h) (j)   L+6.00%   7.00%  2/15/2019  2/15/2024   2,181    1,061    1,055   0.5%
Security Services Acquisition Sub Corp. (Revolver)   L+6.00%   7.00%  2/15/2019  2/15/2024   1,563    1,563    1,553   0.7%
VPS Holdings, LLC   L+7.00%   8.00%  10/5/2018  10/4/2024   4,113    4,051    3,794   1.6%
VPS Holdings, LLC   L+7.00%   8.00%  10/5/2018  10/4/2024   3,355    3,355    3,096   1.3%
VPS Holdings, LLC (Revolver) (f)   L+7.00%   8.00%  10/5/2018  10/4/2024   1,000    100    92   0.0%
                 80,668    73,540    73,268   31.8%
Services: Consumer                                
Mammoth Holdings, LLC   L+6.00%   7.00%  10/16/2018  10/16/2023   1,965    1,939    1,954   0.8%
Mammoth Holdings, LLC   L+6.00%   7.00%  10/16/2018  10/16/2023   4,125    4,125    4,102   1.8%
Mammoth Holdings, LLC (Revolver) (f)   L+6.00%   7.00%  10/16/2018  10/16/2023   500    —    —   0.0%
                 6,590    6,064    6,056   2.6%
Wholesale                                
Nearly Natural, Inc. (j)   L+6.75%   7.75%  12/15/2017  12/15/2022   6,729    6,661    6,676   2.9%
Nearly Natural, Inc. (j)   L+6.75%   7.75%  9/22/2020  12/15/2022   1,739    1,705    1,725   0.7%
Nearly Natural, Inc. (j)   L+6.75%   7.75%  8/28/2019  12/15/2022   1,894    1,894    1,879   0.8%
Nearly Natural, Inc. (Revolver) (f)   L+6.75%   7.75%  12/15/2017  12/15/2022   2,397    —    —   0.0%
                 12,759    10,260    10,280   4.4%
 Total Non-Controlled/Non-Affiliate Senior Secured Loans                406,548    363,760    342,352   148.4%
                                 
 Unitranche Secured Loans (p)                                
Chemicals, Plastics & Rubber                                
MFG Chemical, LLC (j)   L+6.00%   6.50%  6/23/2017  6/23/2022   9,232    9,176    8,599   3.7%
MFG Chemical, LLC   L+6.00%   6.50%  3/15/2018  6/23/2022   979    979    912   0.4%
                 10,211    10,155    9,511   4.1%
Consumer Goods: Durable                                
RugsUSA, LLC   L+6.00%   7.00%  5/2/2018  4/28/2023   3,992    3,970    3,968   1.7%
                 3,992    3,970    3,968   1.7%

 

9 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

September 30, 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                              
Priority Ambulance, LLC (q)   L+6.50%   7.50%  7/18/2018  4/12/2022   10,015   $10,015   $9,915   4.3%
Priority Ambulance, LLC (r)   L+6.50%   7.50%  4/12/2017  4/12/2022   1,253    1,240    1,241   0.5%
Priority Ambulance, LLC (Delayed Draw) (f) (h)   L+6.50%   7.50%  12/13/2018  4/12/2022   2,466    676    670   0.3%
                 13,734    11,931    11,826   5.1%
High Tech Industries                                
Energy Services Group, LLC   L+8.42%   9.42%  5/4/2017  5/4/2022   4,003    3,983    3,986   1.7%
Energy Services Group, LLC (g) (o)   L+8.42%   9.42%  5/4/2017  5/4/2022   4,659    4,757    4,659   2.0%
Energy Services Group, LLC   L+8.42%   9.42%  5/4/2017  5/4/2022   1,139    1,125    1,134   0.5%
WillowTree, LLC   L+5.50%   6.50%  10/9/2018  10/9/2023   7,860    7,768    7,671   3.4%
                 17,661    17,633    17,450   7.6%
 Total Non-Controlled/Non-Affiliate Unitranche Secured Loans                45,598    43,689    42,755   18.5%
                                 
 Junior Secured Loans                                
Beverage, Food & Tobacco                                
CSM Bakery Solutions, LLC   L+10.00%   1.00% Cash/ 10.00% PIK   5/23/2013  2/4/2022   5,954    5,954    5,080   2.2%
                 5,954    5,954    5,080   2.2%
Capital Equipment                                
ALTA Enterprises, LLC (g)   L+8.00%   9.80%  2/14/2020  8/13/2025   3,900    3,776    3,930   1.7%
                 3,900    3,776    3,930   1.7%
High Tech Industries                                
Micro Holdings Corp.   L+7.50%   7.65%  8/16/2017  8/18/2025   3,000    2,981    2,993   1.3%
                 3,000    2,981    2,993   1.3%
Services: Consumer                                
Education Corporation of America   L+11.00%   5.72% Cash/ 5.50% PIK(i)  9/3/2015  n/a(n)  833    831    762   0.3%
                 833    831    762   0.3%
 Total Non-Controlled/Non-Affiliate Junior Secured Loans                13,687    13,542    12,765   5.5%
                                 
 Equity Securities (s) (t)                                
Banking, Finance, Insurance & Real Estate                                
PKS Holdings, LLC (5,680 Preferred Units) (g)  —  5.00% PIK   11/30/2017  —   —    58    214   0.1%
PKS Holdings, LLC (5,714 Preferred Units) (g)  —  5.00% PIK   11/30/2017  —   —    9    33   0.0%
PKS Holdings, LLC (132 Preferred Units) (g)  —  5.00% PIK   11/30/2017  —   —    1    5   0.0%
PKS Holdings, LLC (916 Preferred Units) (g)  —  5.00% PIK   11/30/2017  —   —    9    33   0.0%
                      77    285   0.1%
Capital Equipment                                
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units)  —  —(u)  2/28/2020  —   —    119    136   0.1%
                      119    136   0.1%
Chemicals, Plastics & Rubber                                
Valudor Products, LLC (501,014 Class A-1 units)   n/a   10.00% PIK(i)  6/18/2018  —   —    501    —   0.0%
                      501    —   0.0%
High Tech Industries                                
Answers Finance, LLC (76,539 shares of common stock)  —  —(u)  4/14/2017  —   —    2,344    49   0.0%
Planful, Inc. (473,082 Class A units)  —  —(u)  12/28/2018  —   —    473    670   0.3%
Recorded Future, Inc. (80,486 Class A units) (v)  —  —(u)  7/3/2019  —   —    81    115   0.1%
                      2,898    834   0.4%
Media: Advertising, Printing & Publishing                                
AdTheorent Holding Company, LLC (128,866 Class A voting units)  —  —(u)  12/22/2016  —   —    129    406   0.2%
Stratus Unlimited LLC (fka MC Sign Lessor Corp.) (686 shares of common units)  —  —(u)  8/30/2019  —   —    872    786   0.4%
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) (g) (l)  —  —(u)  9/18/2015  9/18/2025   —    —    193   0.1%
XanEdu Publishing, Inc. (49,479 Class A units)   n/a   8.00% PIK   1/28/2020  —   —    49    63