10-Q 1 tv526446_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 June 30, 2019

 

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 August 5, 2019, the registrant had 20,444,564 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 June 30, 2019 (unaudited) and December 31, 2018 3
     
  Consolidated Statements of Operations for the three and six months ended June 30, 2019 (unaudited) and 2018 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2019 (unaudited) and 2018 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the six months ended June 30, 2019 (unaudited) and 2018 (unaudited) 6
     
  Consolidated Schedules of Investments as of June 30, 2019 (unaudited) and December 31, 2018 7
     
  Notes to Consolidated Financial Statements (unaudited) 27
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 51
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 69
     
Item 4. Controls and Procedures 70
     
PART II. OTHER INFORMATION 71
     
Item 1. Legal Proceedings 71
     
Item 1A. Risk Factors 71
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 72
     
Item 3. Defaults Upon Senior Securities 72
     
Item 4. Mine Safety Disclosures 72
     
Item 5. Other Information 72
     
Item 6. Exhibits 73
     
Signatures   74

 

 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)

 

   June 30, 2019   December 31, 2018 
   (unaudited)      
ASSETS          
Investments, at fair value:          
Non-controlled/non-affiliate company investments  $533,779   $468,720 
Non-controlled affiliate company investments   61,081    57,267 
Controlled affiliate company investments   35,944    27,634 
Total investments, at fair value (amortized cost of: $644,141 and $564,124, respectively)   630,804    553,621 
Cash   2,985    3,744 
Restricted cash   23,884    13,982 
Unrealized gain on foreign currency forward contracts   23    16 
Interest receivable   10,330    7,774 
Other assets   537    692 
Total assets   668,563    579,829 
           
LIABILITIES          
Debt:          
Revolving credit facility   188,640    136,026 
2023 Notes   109,000    69,000 
SBA debentures payable   115,000    115,000 
Total debt   412,640    320,026 
Less:  Unamortized deferred financing costs   (8,797)   (6,262)
Total debt, less unamortized deferred financing costs   403,843    313,764 
Interest payable   2,681    2,550 
Management fees payable   2,723    2,318 
Incentive fees payable   883    — 
Accounts payable and accrued expenses   2,545    2,430 
Total liabilities   412,675    321,062 
Net assets  $255,888   $258,767 
           
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   288,911    288,911 
Accumulated undistributed (overdistributed) earnings   (33,043)   (30,164)
Total net assets  $255,888   $258,767 
           
Net asset value per share  $12.52   $12.66 

 

See Notes to Consolidated Financial Statements.

 

 3 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

(in thousands, except per share data)

 

   Three months ended June 30,   Six months ended June 30, 
   2019   2018   2019   2018 
Investment income:                    
Non-controlled/non-affiliate company investments:                    
Interest income  $13,743   $11,662   $26,573   $23,488 
Payment-in-kind interest income   115    126    213    263 
Dividend income   13    265    26    525 
Fee income   60    583    629    1,307 
Total investment income from non-controlled/non-affiliate company investments   13,931    12,636    27,441    25,583 
Non-controlled affiliate company investments:                    
Interest income   767    1,550    1,690    3,186 
Payment-in-kind interest income   1,146    201    2,102    393 
Fee income   —    83    —    83 
Total investment income from non-controlled affiliate company investments   1,913    1,834    3,792    3,662 
Controlled affiliate company investments:                    
Dividend income   875    350    1,645    525 
Total investment income from controlled affiliate company investments   875    350    1,645    525 
Total investment income   16,719    14,820    32,878    29,770 
                     
Operating expenses:                    
Interest and other debt financing expenses   5,107    2,836    9,461    5,542 
Base management fees   2,723    2,202    5,244    4,365 
Incentive fees   1,168    990    2,768    1,751 
Professional fees   272    302    561    609 
Administrative service fees   319    322    666    646 
General and administrative expenses   285    225    512    401 
Excise taxes   17    —    10    11 
Directors' fees   40    37    75    74 
Expenses before incentive fee waiver   9,931    6,914    19,297    13,399 
Incentive fee waiver   (285)   —    (566)   — 
Total expenses, net of incentive fee waiver   9,646    6,914    18,731    13,399 
Net investment income   7,073    7,906    14,147    16,371 
                     
Net gain (loss):                    
Net realized gain (loss):                    
Non-controlled/non-affiliate company investments   35    —    35    — 
Foreign currency forward contracts   2    —    (6)   — 
Foreign currency and other transactions   (1)   (9)   (2)   3 
Net realized gain (loss)   36    (9)   27    3 
                     
Net change in unrealized gain (loss):                    
Non-controlled/non-affiliate company investments   (2,749)   (515)   (461)   (680)
Non-controlled affiliate company investments   (1,054)   (4,157)   (2,808)   (11,080)
Controlled affiliate company investments   112    260    435    703 
Foreign currency forward contracts   72    —    7    — 
Foreign currency and other transactions   502    795    86    353 
Net change in unrealized gain (loss)   (3,117)   (3,617)   (2,741)   (10,704)
                     
Net gain (loss)   (3,081)   (3,626)   (2,714)   (10,701)
                     
Net increase (decrease) in net assets resulting from operations  $3,992   $4,280   $11,433   $5,670 
                     
Per common share data:                    
Net investment income per share - basic and diluted  $0.35   $0.39   $0.69   $0.81 
Net increase (decrease) in net assets resulting from operations per share - basic and diluted  $0.20   $0.21   $0.56   $0.28 
Weighted average common shares outstanding - basic and diluted   20,445    20,244    20,445    20,242 

 

See Notes to Consolidated Financial Statements. 

 4 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

 

(in thousands)

 

   Common Stock   Capital in    Accumulated undistributed     
   Number of
shares		     Par
value		   excess of par
value		   (overdistributed)
earnings		   Total
net assets		 
Balances at March 31, 2018   20,240   $20   $286,141   $(13,156)  $273,005 
Net investment income   —    —    —    7,906    7,906 
Net realized gain (loss)   —    —    —    (9)   (9)
Net change in unrealized gain (loss)   —    —    —    (3,617)   (3,617)

Issuance of common stock, net of offering and underwriting costs

   17    —    209    —    209 
Distributions to stockholders   22    —    301    (7,087)   (6,786)
Balances at June 30, 2018   20,279   $20   $286,651   $(15,963)  $270,708 
                          
Balances at March 31, 2019   20,445   $20   $288,911   $(29,879)  $259,052 
Net investment income   —    —    —    7,073    7,073 
Net realized gain (loss)   —    —    —    36    36 
Net change in unrealized gain (loss)   —    —    —    (3,117)   (3,117)

Issuance of common stock, net of offering and underwriting costs

   —    —    —    —    — 
Distributions to stockholders   —    —    —    (7,156)   (7,156)
Balances at June 30, 2019   20,445   $20   $288,911   $(33,043)  $255,888 

 

   Common Stock   Capital in    Accumulated undistributed     
   Number of
shares		     Par
value		   excess of par
value		   (overdistributed)
earnings		   Total
net assets		 
Balances at December 31, 2017   20,240   $20   $286,141   $(7,462)  $278,699 
Net investment income   —    —    —    16,371    16,371 
Net realized gain (loss)   —    —    —    3    3 
Net change in unrealized gain (loss)   —    —    —    (10,704)   (10,704)

Issuance of common stock, net of offering and underwriting costs

   17    —    209    —    209 
Distributions to stockholders   22    —    301    (14,171)   (13,870)
Balances at June 30, 2018   20,279   $20   $286,651   $(15,963)  $270,708 
                          
Balances at December 31, 2018   20,445   $20   $288,911   $(30,164)  $258,767 
Net investment income   —    —    —    14,147    14,147 
Net realized gain (loss)   —    —    —    27    27 
Net change in unrealized gain (loss)   —    —    —    (2,741)   (2,741)

Issuance of common stock, net of offering and underwriting costs

   —    —    —    —    — 
Distributions to stockholders   —    —    —    (14,312)   (14,312)
Balances at June 30, 2019   20,445   $20   $288,911   $(33,043)  $255,888 

 

See Notes to Consolidated Financial Statements.

 

 5 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

(in thousands)

 

   Six months ended June 30, 
   2019   2018 
         
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $11,433   $5,670 
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   (35)   — 
Net realized (gain) loss on foreign currency forward contracts   6    — 
Net realized (gain) loss on foreign currency and other transactions   2    (3)
Net change in unrealized (gain) loss on investments   2,834    11,057 
Net change in unrealized (gain) loss on foreign currency forward contracts   (7)   — 
Net change in unrealized (gain) loss on foreign currency and other transactions   (86)   (353)
Payment-in-kind interest income   (2,315)   (656)
Payment-in-kind dividend income   —    (522)
Net accretion of discounts and amortization of premiums   (819)   (1,556)
Proceeds from principal payments, sales of investments and settlement of forward contracts   53,797    60,368 
Purchases of investments   (130,651)   (72,788)
Amortization of deferred financing costs   901    596 
Changes in operating assets and liabilities:          
Interest receivable   (2,556)   (1,904)
Other assets   155    (338)
Interest payable   131    122 
Management fees payable   405    138 
Incentive fees payable   883    (167)
Accounts payable and accrued expenses   115    (23)
Net cash provided by (used in) operating activities   (65,807)   (359)
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   264,450    67,107 
Repayments of revolving credit facility   (211,750)   (58,350)
Proceeds from 2023 Notes   40,000    — 
SBA debentures borrowings   —    5,480 
Payments of deferred financing costs   (3,436)   (388)
Proceeds from shares sold, net of offering and underwriting costs   —    209 
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $301, respectively   (14,312)   (13,870)
Net cash provided by (used in) financing activities   74,952    188 
           
Net increase (decrease) in Cash and Restricted Cash   9,145    (171)
Effect of foreign currency exchange rates   (2)   3 
Cash and Restricted Cash, beginning of period   17,726    7,199 
Cash and Restricted Cash, end of period  $26,869   $7,031 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $8,391   $4,786 
Cash paid (refunded) for excise taxes during the period  $(13)  $91 

 

 

The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:

 

   June 30, 2019   December 31, 2018 
Cash  $2,985   $3,744 
Restricted cash   23,884    13,982 
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows  $26,869   $17,726 
           
    June 30, 2018    December 31, 2017 
Cash  $2,779   $4,332 
Restricted cash   4,252    2,867 
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows  $7,031   $7,199 

 

See Notes to Consolidated Financial Statements.

 6 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 2019

(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+ 8.25%   10.65 %   4/24/2018   4/24/2023       2,888     $ 2,840     $ 2,720       1.1 % 
Magneto & Diesel Acquisition, Inc.   L+ 5.50%   7.90 %   12/18/2018   12/18/2023       4,975       4,895       5,007       1.9 % 
Magneto & Diesel Acquisition, Inc. (Revolver) (f)   L+ 5.50%   7.90 %   12/18/2018   12/18/2023       500        —       —       0.0 % 
                          8,363       7,735       7,727       3.0 % 
Banking, Finance, Insurance & Real Estate                                                  
777 SPV I LLC (Delayed Draw) (g) (h)   L+ 8.50%   10.90 %   4/15/2019   4/14/2023       5,252       5,189       5,270       2.0 % 
Echelon Funding I, LLC (Delayed Draw) (f) (g) (h)   L+ 7.50%   9.94 %   2/24/2017   2/24/2022       18,900       16,533       16,541       6.5 % 
HFZ Capital Group, LLC (h)   L+ 10.17%   12.59% Cash/
0.17% PIK		 (i)   10/20/2017   10/21/2019       18,000       17,930       18,000       7.0 %
HFZ Member RB Portfolio LLC (Delayed Draw) (f) (g) (h)   L+ 12.00%   14.59 %   10/30/2018   10/29/2021       9,000       5,164       5,156       2.0 %
Liftforward SPV II, LLC (f) (g) (h)   L+ 10.75%   13.15 %   11/10/2016   11/10/2020       10,000       3,994       4,021       1.6 %
PKS Holdings, LLC (h)   L+ 10.50%   12.94 %   11/30/2017   11/30/2022       1,710       1,568       1,694       0.7 %
PKS Holdings, LLC (Revolver) (f) (h)   L+ 10.50%   12.94 %   11/30/2017   11/30/2022       80       —       —       0.0 % 
                          62,942       50,378       50,682       19.8 % 
Beverage, Food & Tobacco                                                    
California Pizza Kitchen, Inc.   L+ 6.00%   8.53 %   8/19/2016   8/23/2022       6,808       6,764       6,671       2.6 % 
Toojay's Management LLC   L+ 5.50%   7.90 %   10/26/2018   10/26/2022       3,483       3,423       3,474       1.4 % 
Toojay's Management LLC   L+ 5.50%   7.90 %   10/26/2018   10/26/2022       477       477       476       0.2 % 
Toojay's Management LLC (Revolver) (f)   L+ 5.50%   7.90 %   10/26/2018   10/26/2022       159       80       79       0.0 % 
                          10,927       10,744       10,700       4.2 % 
Chemicals, Plastics & Rubber                                                    
Midwest Composite Technologies, LLC   L+ 6.25%   8.65 %   8/31/2018   8/31/2023       893       878       911       0.4 %
Midwest Composite Technologies, LLC (Delayed Draw) (f) (g)   L+ 6.25%   8.65 %   8/31/2018   8/31/2023       600       60       61       0.0 %
Midwest Composite Technologies, LLC (Revolver) (f)   L+ 6.25%   8.65 %   8/31/2018   8/31/2023       90       —       —       0.0 %
Valudor Products, LLC   L+ 7.50%   9.90 %   6/18/2018   6/19/2023       1,584       1,557       1,562       0.6 %
Valudor Products, LLC (j)   L+ 7.50%   9.90 %   6/18/2018   6/19/2023       211       206       208       0.1 %
Valudor Products, LLC (Revolver) (f)   L+ 9.50%   11.90 %   6/18/2018   6/19/2023       818       336       333       0.1 %
                          4,196       3,037       3,075       1.2 %
Construction & Building                                                    
Cali Bamboo, LLC   L+ 7.00%   9.40 %   7/10/2015   7/10/2020       7,896       7,836       7,896       3.1 % 
Cali Bamboo, LLC (Revolver) (f)   L+ 7.00%   9.40 %   7/10/2015   7/10/2020       2,165       —       —       0.0 %
Construction Supply Acquisition, LLC   L+ 6.00%   8.41 %   11/27/2018   6/30/2023       4,509       4,489       4,498       1.8 %
Dude Solutions Holdings, Inc.   L+ 7.00%   9.40 %   6/14/2019   6/13/2025       10,000       9,777       9,775       3.8 %
Dude Solutions Holdings, Inc. (Revolver) (f)   L+ 7.00%   9.40 %   6/14/2019   6/13/2025       1,304       365       357       0.1 %
                          25,874       22,467       22,526       8.8 %
Consumer Goods: Durable                                                    
Nova Wildcat Amerock, LLC   L+ 5.75%   8.15 %   10/12/2018   10/12/2023       9,453       9,285       9,358       3.7 %
Nova Wildcat Amerock, LLC (Revolver) (f)   L+ 5.75%   8.15 %   10/12/2018   10/12/2023       931       —       —       0.0 % 
Parterre Flooring & Surface Systems, LLC (k)   L+ 9.00%   11.40 %   8/22/2017   8/22/2022       9,030       8,906       8,606       3.4 %
Parterre Flooring & Surface Systems, LLC (Revolver)   L+ 9.00%   11.40 %   8/22/2017   8/22/2022       696       696       660       0.2 % 
                          20,110       18,887       18,624       7.3 % 
Consumer Goods: Non-Durable                                                    
Quirch Foods Holdings, LLC   L+ 6.00%   8.40 %   2/14/2019   12/19/2025       1,990       1,971       1,990       0.8 % 
                          1,990       1,971       1,990       0.8 % 
Energy: Oil & Gas                                                    
BJ Services, LLC   L+ 7.00%   9.59 %   1/28/2019   1/3/2023       4,500       4,460       4,502       1.7 % 
Landpoint, LLC   L+ 10.00%   12.40 %   12/17/2013   12/20/2019       2,069       2,067       2,069       0.8 % 
Landpoint, LLC (Revolver) (f)   L+ 10.00%   12.40 %   12/17/2013   12/20/2019       313       156       156       0.1 % 
                          6,882       6,683       6,727       2.6 % 

 

 7 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2019

(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)		  
Environmental Industries                                                    
StormTrap, LLC   L+ 5.50%   7.90 %   12/10/2018   12/8/2023       7,960      $ 7,833      $ 7,896       3.1 % 
StormTrap, LLC (Revolver) (f)   L+ 5.50%   7.90 %   12/10/2018   12/8/2023       432       108       108       0.0 % 
Synergy Environmental Corporation (k)   L+ 7.00%   9.40 %   4/29/2016   4/29/2021       2,893       2,861       2,885       1.1 % 
Synergy Environmental Corporation (k)   L+ 7.00%   9.40 %   4/29/2016   4/29/2021       484       479       482       0.2 % 
Synergy Environmental Corporation (Delayed Draw) (f) (g)   L+ 7.00%   9.40 %   4/29/2016   4/29/2021       1,310       827       824       0.3 % 
Synergy Environmental Corporation (Revolver) (f)   L+ 7.00%   9.40 %   4/29/2016   4/29/2021       671       437       436       0.2 % 
                          13,750       12,545       12,631       4.9 % 
Healthcare & Pharmaceuticals                                                    
American Optics Holdco, Inc. (h) (l)   L+ 7.00%   9.40 %   9/13/2017   9/13/2022       4,267       4,206       4,250       1.7 %
American Optics Holdco, Inc. (h) (l)   L+ 7.00%   9.40 %   9/13/2017   9/13/2022       1,664       1,637       1,658       0.6 %
American Optics Holdco, Inc. (Revolver) (f) (h) (l)   L+ 7.00%   9.40 %   9/13/2017   9/13/2022       440       —       —       0.0 %
American Optics Holdco, Inc. (Revolver) (f) (h) (l)   L+ 7.00%   9.40 %   9/13/2017   9/13/2022       440       —       —       0.0 %
Apotheco, LLC   L+ 5.50%   7.90 %   4/8/2019   4/8/2024       3,500       3,433       3,493       1.4 %
Apotheco, LLC (Delayed Draw) (f) (g)   L+ 5.50%   7.90 %   4/8/2019   4/8/2024       1,647       —       —       0.0 %
Apotheco, LLC (Revolver) (f)   L+ 5.50%   7.90 %   4/8/2019   4/8/2024       909       159       159       0.1 %
Familia Dental Group Holdings, LLC (k)   L+ 8.00%   10.40 %   4/8/2016   4/8/2021       5,019       4,985       4,715       1.8 %
Familia Dental Group Holdings, LLC   L+ 8.00%   10.40 %   4/8/2016   4/8/2021       483       483       454       0.2 %
Familia Dental Group Holdings, LLC (Revolver) (f)   L+ 8.00%   10.40 %   4/8/2016   4/8/2021       573       372       350       0.1 %
Rockdale Blackhawk, LLC (DIP Facility)   n/a   15.10 %   8/30/2018   n/a (m)      198       198       198       0.1 %
Rockdale Blackhawk, LLC (DIP Facility)   n/a   15.10 %   8/6/2018   n/a (m)      8,877       8,877       8,877       3.5 %
Rockdale Blackhawk, LLC   L+ 13.00%   15.40 %(n) 3/31/2015   3/31/2020       10,923       10,465       8,826       3.4 % 
                          38,940       34,815       32,980       12.9 % 
High Tech Industries                                                    
Host Analytics, Inc.   L+ 6.00%   8.44 %   12/28/2018   12/28/2023       9,500       9,325       9,538       3.7 %
Host Analytics, Inc. (Revolver) (f)   L+ 6.00%   8.44 %   12/28/2018   12/28/2023       442       —       —       0.0 %
Mindbody, Inc.   L+ 7.00%   9.39 %   2/15/2019   2/14/2025       6,333       6,216       6,330       2.5 %
Mindbody, Inc. (Revolver) (f)   L+ 7.00%   9.39 %   2/15/2019   2/14/2025       667       —       —       0.0 %
Newforma, Inc. (k)   L+ 5.50%   7.83 %   6/30/2017   6/30/2022       13,382       13,254       13,382       5.2 %
Newforma, Inc. (Revolver) (f)   L+ 5.50%   7.83 %   6/30/2017   6/30/2022       1,250       —       —       0.0 % 
Prototek Sheetmetal Fabrication, LLC   L+ 7.00%   9.40 %   12/11/2017   12/12/2022       3,377       3,327       3,353       1.3 %
Prototek Sheetmetal Fabrication, LLC   L+ 7.00%   9.40 %   6/27/2019   12/12/2022       1,604       1,572       1,593       0.6 %
Prototek Sheetmetal Fabrication, LLC (Delayed Draw) (f) (g)   L+ 7.00%   9.40 %   12/11/2017   12/12/2022       2,306       1,723       1,711       0.7 %
Prototek Sheetmetal Fabrication, LLC (Revolver) (f)   L+ 7.00%   9.40 %   12/11/2017   12/12/2022       233       —       —       0.0 %
RPL Bidco Limited  (h) (l) (o)   L+ 7.50%   8.29 %   11/9/2017   11/9/2023       13,667       14,090       13,804       5.4 %
RPL Bidco Limited (Delayed Draw) (f) (g) (h) (l) (o)   L+ 7.50%   8.29 %   5/22/2018   11/9/2023       2,031       —       —       0.0 %
RPL Bidco Limited (Revolver) (f) (h) (l) (o)   L+ 7.50%   8.29 %   11/9/2017   11/9/2023       508       —       —       0.0 %
WillowTree, LLC   L+ 5.50%   7.90 %   10/9/2018   10/9/2023       7,940       7,817       7,976       3.1 %
WillowTree, LLC (Revolver) (f)   L+ 5.50%   7.90 %   10/9/2018   10/9/2023       1,000       920       920       0.4 %
                          64,240       58,244       58,607       22.9 %

 

 

 8 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2019

(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)		  
Hotels, Gaming & Leisure                                                    
TRG, LLC   L+ 13.63%   9.94% Cash/
6.13% PIK		 (p)    12/23/2014   2/14/2020       17,096     $  17,069     $  18,617       7.2 % 
TRG, LLC (CapEx)   L+ 9.50%   9.94% Cash/
2.00% PIK		     9/1/2015   2/14/2020       1,364       1,362       1,486       0.6 % 
TRG, LLC (Revolver) (f)   L+ 9.50%   11.94 %   12/23/2014   2/14/2020       262       131       143       0.1 %
                          18,722       18,562       20,246       7.9 %
Media: Advertising, Printing & Publishing                                                    
AdTheorent, Inc.   L+ 8.50%   10.94 %   12/22/2016   12/22/2021       3,523       3,484       3,519       1.4 % 
Destination Media, Inc. (k)   L+ 5.50%   7.90 %   4/7/2017   4/7/2022       5,024       4,979       5,070       2.0 % 
Destination Media, Inc. (Revolver) (f)   L+ 5.50%   7.90 %   4/7/2017   4/7/2022       542       —       —       0.0 % 
MC Sign Lessor Corp.   L+ 7.00%   9.44 %   12/22/2017   12/22/2022       9,134       8,997       9,225       3.6 % 
MC Sign Lessor Corp.   L+ 7.00%   9.44 %   12/22/2017   12/22/2022       2,078       2,078       2,099       0.8 %
MC Sign Lessor Corp. (Revolver)   L+ 7.00%   9.40 %   12/22/2017   12/22/2022       625       625       625       0.2 %
                          20,926       20,163       20,538       8.0 %
Media: Broadcasting & Subscription                                                    
Vice Group Holding Inc.   L+ 12.00%   6.62% Cash/
8.00% PIK		     5/2/2019   11/2/2022       1,200       1,188       1,193       0.5 %
Vice Group Holding Inc. (Delayed Draw) (f) (g)   L+ 9.00%   11.62 %   5/2/2019   11/2/2022       400       —       —       0.0 %
Vice Group Holding Inc. (Delayed Draw) (f) (g)   L+ 9.00%   11.62 %   5/2/2019   11/2/2022       400       —       —       0.0 %
                          2,000       1,188       1,193       0.5 %
Media: Diversified & Production                                                    
Attom Intermediate Holdco, LLC   L+ 5.75%   8.15 %   1/4/2019   1/4/2024       1,990       1,954       1,987       0.8 %
Attom Intermediate Holdco, LLC (Revolver) (f)   L+ 5.75%   8.15 %   1/4/2019   1/4/2024       320       —       —       0.0 %
Crownpeak Technology, Inc.   L+ 6.25%   8.69 %   2/28/2019   2/28/2024       4,000       3,925       4,012       1.5 %
Crownpeak Technology, Inc. (Delayed Draw) (f) (g)   L+ 6.25%   8.69 %   2/28/2019   2/28/2024       333       —       —       0.0 %
Crownpeak Technology, Inc. (Revolver) (f)   L+ 6.25%   8.69 %   2/28/2019   2/28/2024       167       —       —       0.0 %
                          6,810       5,879       5,999       2.3 %
Retail                                                    
Bluestem Brands, Inc.   L+ 7.50%   9.90 %   6/26/2015   11/6/2020       2,355       2,348       1,796       0.7 %
Forman Mills, Inc. (k)   L+ 9.50%   9.90% Cash/
2.00% PIK		     10/4/2016   10/4/2021       8,256       8,171       7,859       3.1 %
LuLu's Fashion Lounge, LLC   L+ 9.00%   11.40 %   8/21/2017   8/29/2022       4,344       4,254       4,294       1.7 %
The Worth Collection, Ltd. (k)   L+ 8.50%   6.65% Cash/
4.25% PIK		     9/29/2016   9/29/2021       10,588       10,480       7,379       2.9 %
Yandy Holding, LLC   L+ 11.00%   13.40 %   9/30/2014   9/30/2019       3,643       3,640       3,635       1.4 %
Yandy Holding, LLC (Revolver) (f)   L+ 11.00%   13.40 %   9/30/2014   9/30/2019       907       —       —       0.0 %
                          30,093       28,893       24,963       9.8 %

 

 9 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2019

(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                                                    
APCO Worldwide, Inc.   L+ 8.00%   10.40 %   6/30/2017   6/30/2022       4,750     $  4,687      $ 4,691       1.8 %
Arcserve (USA) LLC   L+ 6.00%   8.52 %   5/1/2019   5/1/2024       5,000       4,902       5,000       2.0 %
Arcserve (USA) LLC (Revolver) (f)   L+ 6.00%   8.52 %   5/1/2019   5/1/2024       641       —       —       0.0 %
Atlas Sign Industries of FLA, LLC (k)   L+ 11.50%   12.90% Cash/
1.00% PIK		     5/14/2018   5/15/2023       3,509       3,314       3,353       1.3 %
Burroughs, Inc. (k)   L+ 8.50%   9.94% Cash/
1.00% PIK		     12/22/2017   12/22/2022       5,813       5,749       5,746       2.2 %
Burroughs, Inc. (Revolver)   L+ 8.50%   9.94% Cash/
1.00% PIK		     12/22/2017   12/22/2022       1,215       1,125       1,125       0.4 %
Certify, Inc.   L+ 5.75%   8.15 %   2/28/2019   2/28/2024       9,000       8,872       8,924       3.5 %
Certify, Inc. (Delayed Draw) (f) (g)   L+ 5.75%   8.15 %   2/28/2019   2/28/2024       1,227       205       203       0.1 %
Certify, Inc. (Revolver) (f)   L+ 5.75%   8.15 %   2/28/2019   2/28/2024       409       —       —       0.0 %
First Call Resolution, LLC (k)   L+ 7.00%   9.44 %   9/22/2017   9/22/2022       3,733       3,688       3,771       1.5 %
First Call Resolution, LLC   L+ 7.00%   9.44 %   9/28/2018   9/22/2022       9,077       8,952       9,167       3.6 %
HaystackID LLC   L+ 6.50%   8.90 %   1/14/2019   1/12/2024       4,975       4,884       4,965       1.9 %
HaystackID LLC (Revolver) (f)   L+ 6.50%   8.90 %   1/14/2019   1/12/2024       403       161       161       0.1 %
IT Global Holding LLC   L+ 7.00%   9.40 %   11/15/2018   11/10/2023       10,369       10,182       10,400       4.0 %
IT Global Holding LLC (Revolver) (f)   L+ 7.00%   9.40 %   11/15/2018   11/10/2023       875       263       263       0.1 % 
Kaseya Traverse, Inc.   L+ 6.50%   7.94% Cash/
1.00% PIK		     5/3/2019   5/2/2025       6,005       5,887       6,038       2.4 %
Kaseya Traverse, Inc. (Delayed Draw) (f) (g)   L+ 5.50%   7.94 %   5/3/2019   5/2/2025       723       —       —       0.0 %
Kaseya Traverse, Inc. (Revolver) (f)   L+ 6.50%   8.94 %   5/3/2019   5/2/2025       506       —       —       0.0 %
Madison Logic, Inc. (k)   L+ 8.00%   10.40 %   11/30/2016   11/30/2021       9,741       9,634       9,741       3.8 %
Madison Logic, Inc. (Revolver) (f)   L+ 8.00%   10.40 %   11/30/2016   11/30/2021       988       —       —       0.0 %
RedZone Robotics, Inc.   L+ 7.75%   9.15% Cash/
1.00% PIK		     6/1/2018   6/5/2023       755       743       679       0.3 %
RedZone Robotics, Inc. (Revolver) (f) (g)   L+ 6.75%   9.15 %   6/1/2018   6/5/2023       158       —       —       0.0 %
Security Services Acquisition Sub Corp.(k)   L+ 6.00%   8.39 %   2/15/2019   2/15/2024       3,491       3,427       3,486       1.4 %
Security Services Acquisition Sub Corp. (Delayed Draw) (f) (g) (k)   L+ 6.00%   8.39 %   2/15/2019   2/15/2024       2,500       —       —       0.0 %
Security Services Acquisition Sub Corp. (Delayed Draw) (f) (g) (k)   L+ 6.00%   8.39 %   2/15/2019   2/15/2024       2,188       —       —       0.0 %
Security Services Acquisition Sub Corp. (Revolver) (f)   L+ 6.00%   8.39 %   2/15/2019   2/15/2024       1,042       —       —       0.0 %
TRP Construction Group, LLC (k)   L+ 7.00%   9.40 %   10/5/2017   10/5/2022       7,863       7,752       7,819       3.1 %
TRP Construction Group, LLC   L+ 7.00%   9.40 %   9/5/2018   10/5/2022       6,741       6,741       6,704       2.6 %
TRP Construction Group, LLC (Revolver) (f)   L+ 7.00%   9.40 %   10/5/2017   10/5/2022       2,133       —       —       0.0 %
VPS Holdings, LLC   L+ 7.00%   9.40 %   10/5/2018   10/4/2024       4,938       4,847       4,977       1.9 %
VPS Holdings, LLC   L+ 7.00%   9.40 %   10/5/2018   10/4/2024       4,000       4,000       4,032       1.6 %
VPS Holdings, LLC (Revolver) (f)   L+ 7.00%   9.40 %   10/5/2018   10/4/2024       1,000       100       100       0.0 %
                          115,768       100,115       101,345       39.6 %
Services: Consumer                                                    
Mammoth Holdings, LLC   L+ 6.00%   8.59 %   10/16/2018   10/16/2023       1,990       1,956       1,983       0.8 %
Mammoth Holdings, LLC (Delayed Draw) (f) (g)   L+ 6.00%   8.55 %   10/16/2018   10/16/2023       4,167       2,827       2,817       1.1 %
Mammoth Holdings, LLC (Revolver) (f)   L+ 6.00%   8.59 %   10/16/2018   10/16/2023       500       —       —       0.0 %
PeopleConnect Intermediate, LLC   L+ 6.50%   9.10 %   7/1/2015   7/1/2020       4,168       4,146       4,159       1.6 %
PeopleConnect Intermediate, LLC   L+ 12.50%   15.10 %   7/1/2015   7/1/2020       4,584       4,558       4,567       1.8 %
PeopleConnect Intermediate, LLC (Revolver) (f)   L+ 9.50%   12.10 %   7/1/2015   7/1/2020       236       118       118       0.0 %
                          15,645       13,605       13,644       5.3 %
Wholesale                                                    
Mid-West Wholesale Hardware Co. (q)   L+ 8.00%   10.40 %   2/9/2017   2/9/2022       19,472       19,214       19,443       7.6 %
Mid-West Wholesale Hardware Co. (Revolver) (f)   L+ 8.00%   10.40 %   2/9/2017   2/9/2022       5,491       3,844       3,838       1.5 %
Nearly Natural, Inc. (k)   L+ 7.00%   9.33 %   12/15/2017   12/15/2022       6,895       6,794       6,854       2.7 % 
Nearly Natural, Inc. (Revolver) (f)   L+ 7.00%   9.33 %   12/15/2017   12/15/2022       1,522       457       457       0.2 %
                          33,380       30,309       30,592       12.0 %
  Total Non-Controlled/Non-Affiliate Senior Secured Loans               501,558       446,220       444,789       173.8 % 
                                                     
  Unitranche Secured Loans (r)                                                    
Chemicals, Plastics & Rubber                                                    
MFG Chemical, LLC (k)   L+ 6.00%   8.40 %   6/23/2017   6/23/2022       10,477       10,373       10,257       4.0 %
MFG Chemical, LLC   L+ 6.00%   8.40 %   3/15/2018   6/23/2022       1,126       1,126       1,103       0.4 %
                          11,603       11,499       11,360       4.4 %
Construction & Building                                                    
Inland Pipe Rehabilitation LLC   L+ 5.50%   7.83 %   12/27/2018   12/26/2024       12,438       12,202       12,487       4.9 %
                          12,438       12,202       12,487       4.9 %
Consumer Goods: Durable                                                    
RugsUSA, LLC   L+ 6.00%   8.33 %   5/2/2018   4/28/2023       4,000       3,969       4,008       1.6 %
                          4,000       3,969       4,008       1.6 %

 

 10 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2019

(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                                                    
Collaborative Neuroscience Network, LLC   L+ 11.50%   13.90 %   12/27/2012   n/a (m)      6,120     $  6,108     $ 6,096       2.4 %
Collaborative Neuroscience Network, LLC   n/a   12.00% Cash/
3.00% PIK		     4/14/2016   n/a (m)      308       308       308       0.1 %
Collaborative Neuroscience Network, LLC (Revolver)   L+ 10.00%   12.40 %   5/25/2017   n/a (m)      200       193       200       0.1 %
Priority Ambulance, LLC (s)   L+ 6.50%   8.83 %   7/18/2019   4/12/2022       10,015       10,015       10,000       3.9 %
Priority Ambulance, LLC (t)   L+ 6.50%   8.83 %   4/12/2017   4/12/2022       1,253       1,230       1,251       0.5 %
Priority Ambulance, LLC (Delayed Draw) (f) (g)   L+ 6.50%   8.83 %   7/18/2019   4/12/2022       246       —       —       0.0 %
Priority Ambulance, LLC (Delayed Draw) (f) (g)   L+ 6.50%   8.83 %   12/13/2018   4/12/2022       2,482       693       692       0.3 %
                          20,624       18,547       18,547       7.3 %
High Tech Industries                                                    
Energy Services Group, LLC   L+ 8.42%   10.82 %   5/4/2017   5/4/2022       4,281       4,244       4,275       1.6 %
Energy Services Group, LLC (h) (o)   L+ 8.42%   9.42 %   5/4/2017   5/4/2022       4,896       5,061       4,896       1.9 %
Energy Services Group, LLC   L+ 8.42%   10.82 %   5/4/2017   5/4/2022       1,219       1,204       1,217       0.5 %
Mnine Holdings, Inc.   L+ 6.75%   9.16 %   11/2/2018   11/2/2023       7,960       7,817       7,861       3.1 %
                          18,356       18,326       18,249       7.1 %
  Total Non-Controlled/Non-Affiliate Unitranche Secured Loans           67,021       64,543       64,651       25.3 %
                                                     
  Junior Secured Loans                                                    
Beverage, Food & Tobacco                                                    
CSM Bakery Supplies, LLC   L+ 7.75%   10.34 %   5/23/2013   7/5/2021       5,792       5,792       5,392       2.1 % 
                          5,792       5,792       5,392       2.1 %
High Tech Industries                                                    
Micro Holdings Corp.   L+ 7.50%   9.90 %   8/16/2017   8/18/2025       3,000       2,973       3,015       1.2 %
                          3,000       2,973       3,015       1.2 %
Media: Broadcasting & Subscription                                                    
Mergermarket Bidco Limited   L+ 7.25%   9.64 %   7/26/2017   8/4/2025       4,500       4,459       4,483       1.7 %
                          4,500       4,459       4,483       1.7 %
Media: Diversified & Production                                                    
The Octave Music Group, Inc.   L+ 8.25%   10.68 %   5/29/2015   5/27/2022       4,355       4,322       4,355       1.7 %
                          4,355       4,322       4,355       1.7 %
Services: Consumer                                                    
Education Corporation of America   L+ 11.00%   7.83% Cash/
5.50% PIK		 (n)    9/3/2015   3/31/2020       833       831       813       0.3 %
                          833       831       813       0.3 %
Total Non-Controlled/Non-Affiliate Junior Secured Loans             18,480       18,377       18,058       7.0 %
                                                     
Equity Securities  (u) (v)                                                    
Banking, Finance, Insurance & Real Estate                                                    
PKS Holdings, LLC (warrant to purchase up to 0.8% of the equity) (h)   —   — (w)    11/30/2017   11/30/2027       —       116       —       0.0 % 
                                  116        —       0.0 %
Chemicals, Plastics & Rubber                                                    
Valudor Products, LLC (501,014 class A-1 units)    n/a   10.00% PIK     6/18/2018   —       —       501       351       0.1 %
                                  501       351       0.1 %
Healthcare & Pharmaceuticals                                                    
Collaborative Neuroscience Network, LLC (warrant to purchase up to 1.5% of the equity)   —   — (w)    12/27/2012   12/27/2022       —       —       234       0.1 %
Collaborative Neuroscience Network, LLC (warrant to purchase up to 2.1% of the equity)   —   — (w)    7/19/2016   12/31/2027       —       —       —       0.0 %
                                  —       234       0.1 %
High Tech Industries                                                    
Answers Finance, LLC (76,539 shares of common stock)   —   — (w)    4/14/2017   —       —       2,413       126       0.1 %
Host Analytics, Inc. (441,860 class A Units)   —   — (w)    12/28/2018   —       —       442       543       0.2 %
                                  2,855       669       0.3 % 
Hotels, Gaming & Leisure                                                    
Playtime, LLC - Preferred Units (8,665 units)   —   — (w)    12/4/2012   —       —       200       —       0.0 %
                                  200       —       0.0 %
Media: Advertising, Printing & Publishing                                                    
AdTheorent, Inc. (128,866 class A voting units)   —   — (w)    12/22/2016   —       —       129       332       0.1 %
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) (h) (l)   —   — (w)    9/18/2015   9/18/2025       —        —       209       0.1 %
                                  129       541       0.2 %
Media: Diversified & Production                                                    
Attom Intermediate Holdco, LLC (260,000 class A units)   —   — (w)    1/4/2019   —       —       260       257       0.1 %
                                  260       257       0.1 %

 

 11 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2019

(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                                                    
The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units)   —   —   6/25/2013   —       —     $  87     $  110       0.0 %
The Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units)   —   —   6/25/2013   —       —       —       —       0.0 %
                                  87       110       0.0 %
Services: Business                                                    
APCO Worldwide, Inc. (100 class A voting common stock)   —   — (w)    11/1/2017   —       —       395       311       0.1 %
Atlas Sign Industries of FLA, LLC (warrants to purchase up to 0.8% of the equity)   —   — (w)    5/14/2018   5/14/2026       —       125       86       0.1 %
                                  520       397       0.2 %
Services: Consumer                                                    
Education Corporation of America - Series G Preferred Stock (8,333 shares)   n/a   12.00% PIK (n)    9/3/2015   —       —       7,492       3,571       1.4 %
                                  7,492       3,571       1.4 %
Wholesale                                                    
Nearly Natural, Inc. (152,174 class A units)   —   — (w)    12/15/2017   —       —       152       151       0.1 %
                                  152       151       0.1 %
Total Non-Controlled/Non-Affiliate Equity Securities                       12,312       6,281       2.5 %
Total Non-Controlled/Non-Affiliate Company Investments                     $ 541,452     $ 533,779       208.6 % 
                                                     
Non-Controlled Affiliate Company Investments (x)                                        
Senior Secured Loans                                                    
Banking, Finance, Insurance & Real Estate                                                    
American Community Homes, Inc.   L+ 10.00%   12.40% PIK     7/22/2014   12/31/2020       8,302      $ 8,290     $  6,202       2.4 %
American Community Homes, Inc.   L+ 14.50%   16.90% PIK     7/22/2014   12/31/2020       5,145       5,140       3,844       1.5 %
American Community Homes, Inc.   L+ 10.00%   12.40% PIK     3/17/2016   12/31/2020       628       627       469       0.2 %
American Community Homes, Inc.   L+ 10.00%   12.40% PIK     5/24/2017   12/31/2020       503       501       376       0.2 %
American Community Homes, Inc.   L+ 14.50%   16.90% PIK     5/24/2017   12/31/2020       277       276       207       0.1 %
American Community Homes, Inc.   L+ 8.00%   10.40% PIK     8/10/2018   12/31/2020       1,825       1,825       1,363       0.5 %
American Community Homes, Inc.   L+ 8.00%   10.40% PIK     3/29/2019   12/31/2020       3,422       3,422       2,557       1.0 %
                          20,102       20,081       15,018       5.9 %
Containers, Packaging & Glass                                                    
Summit Container Corporation (k)   L+ 8.00%   10.40 %   12/5/2013   1/6/2021       3,259       3,269       3,026       1.2 %
Summit Container Corporation (Revolver) (f) (k)   L+ 8.00%   10.40 %   6/15/2018   1/6/2021       8,000       5,369       5,305       2.0 %
                          11,259       8,638       8,331       3.2 %
Healthcare & Pharmaceuticals                                                    
SHI Holdings, Inc. (k)   L+ 10.25%   12.65% PIK     7/10/2014   12/31/2020       2,723       2,721       2,680       1.1 %
SHI Holdings, Inc. (Revolver) (f)   L+ 10.25%   12.65% PIK     7/10/2014   12/31/2020       4,413       3,656       3,608       1.4 %
                          7,136       6,377       6,288       2.5 %
Retail                                                    
Luxury Optical Holdings Co.   L+ 8.00%   10.40% PIK     9/12/2014   9/12/2019       4,953       4,949       4,346       1.7 %
Luxury Optical Holdings Co. (Delayed Draw) (f) (g)   L+ 11.50%   13.90 %   9/29/2017   9/12/2019       1,059       624       623       0.2 %
Luxury Optical Holdings Co. (Revolver)   L+ 8.00%   10.40% PIK     9/12/2014   9/12/2019       228       228       200       0.1 %
                          6,240       5,801       5,169       2.0 %
Services: Business                                                    
Curion Holdings, LLC (k)   n/a   14.00% PIK     5/2/2017   5/2/2022       4,226       4,189       3,602       1.4 %
Curion Holdings, LLC (Revolver) (f)   n/a   14.00% PIK     5/2/2017   5/2/2022       478       344       335       0.1 %
                          4,704       4,533       3,937       1.5 %
Services: Consumer                                                    
New England College of Business and Finance, LLC (Revolver) (f)   L+ 11.00%   13.40 %   6/25/2019   12/31/2019       450       150       150       0.1 %
                          450       150       150       0.1 %
Total Non-Controlled Affiliate Senior Secured Loans               49,891       45,580       38,893       15.2 %
                                                     
Unitranche Secured Loans (r)                                                    
Consumer Goods: Non-Durable                                                    
Incipio, LLC (y)   L+ 8.72%   10.94% Cash/
0.22% PIK		 (z)    12/26/2014   8/22/2022       13,803       13,777       12,941       5.1 %
Incipio, LLC (aa)   L+ 8.50%   10.94 %   3/9/2018   8/22/2022       3,613       3,613       3,568       1.4 %
Incipio, LLC   L+ 8.50%   10.94 %   7/6/2018   8/22/2022       1,535       1,535       1,530       0.6 %
Incipio, LLC   L+ 8.50%   10.94 %   4/17/2019   8/22/2022       656       656       653       0.2 %
                          19,607       19,581       18,692       7.3 %
Total Non-Controlled Affiliate Unitranche Secured Loans           19,607       19,581       18,692       7.3 %

 

 12 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2019

(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                                                    
Consumer Goods: Non-Durable                                                    
Incipio, LLC (ab)   n/a   10.70% PIK (n)     6/18/2018   8/22/2022       3,766     $  —     $  800       0.3 %
Incipio, LLC (ac)   n/a   10.70% PIK (n)    6/18/2018   8/22/2022       7,194       —       —       0.0 %
                          10,960       —       800       0.3 %
Services: Business                                                    
Curion Holdings, LLC (k)   n/a   15.00% PIK (n)    8/17/2018   1/2/2023       1,720       1       —       0.0 %
Curion Holdings, LLC (k)   n/a   15.00% PIK (n)    8/17/2018   1/2/2023       44       —       —       0.0 %
                          1,764       1       —       0.0 %
Total Non-Controlled Affiliate Company Junior Secured Loans           12,724       1       800       0.3 %
                                                     
Equity Securities (v) (x)                                                    
Banking, Finance, Insurance & Real Estate                                                    
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)   —   — (w)    10/9/2014   12/18/2024       —       —       —       0.0 %
                                  —       —       0.0 %
Consumer Goods: Non-Durable                                                    
Incipio, LLC (1,774 shares of series C common units)   —   — (w)    7/6/2018   —       —       —       —       0.0 %
Millennial Brands LLC (10 preferred units)   —   — (w)    5/2/2014   —       —       967       —       0.0 %
Millennial Brands LLC (75,502 common units)   —   — (w)    5/2/2014   —       —       —       —       0.0 %
                                  967       —       0.0 %
Containers, Packaging & Glass                                                    
Summit Container Corporation (warrant to purchase up to 19.5% of the equity)   —   — (w)    1/6/2014   1/6/2024       —       —       —       0.0 %
                                  —       —       0.0 %
Healthcare & Pharmaceuticals                                                    
SHI Holdings, Inc. (24 shares of common stock)   —   — (w)    12/14/2016   —       —       27       102       0.1 %
                                  27       102       0.1 %
Retail                                                    
Luxury Optical Holdings Co. (86 shares of common stock)   —   — (w)    9/29/2017   —       —       —       —       0.0 %
                                  —       —       0.0 %
Services: Business                                                    
Curion Holdings, LLC (58,779 shares of common stock)   —   — (w)    8/17/2018   —       —       —       —       0.0 %
                                  —       —       0.0 %
Services: Consumer                                                    
New England College of Business and Finance, LLC (20.8% of units)   —   — (w)    6/21/2019   —       —       1,458       2,594       1.0 %
                                  1,458       2,594       1.0 %
Total Non-Controlled Affiliate Equity Securities                       2,452       2,696       1.1 %
Total Non-Controlled Affiliate Company Investments                 $ 67,614     $ 61,081       23.9 % 
                                                     
Controlled Affiliate Company Investments (ad)                                                    
Equity Securities                                                    
Investment Funds & Vehicles                                                    
MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) (h)   —   —     10/31/2017   —       —      $ 35,075     $ 35,944       14.0 %
Total Controlled Affiliate Equity Securities                             35,075       35,944       14.0 %
Total Controlled Affiliate Company Investments                     $ 35,075     $ 35,944       14.0 %
                                                     
TOTAL INVESTMENTS                               $ 644,141     $ 630,804       246.5 % 

 

 13 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2019

(in thousands, except for shares and units)

 

Derivative Instruments

 

Foreign currency forward contracts

 

   Notional Amount   Notional Amount         Unrealized Gain 
Description  to be Purchased   to be Sold   Counterparty  Settlement Date  (Loss) 
Foreign currency forward contract  $53   £41   Bannockburn Global Forex, LLC  7/1/2019  $1 
Foreign currency forward contract  $294   £230   Bannockburn Global Forex, LLC  8/30/2019   3 
Foreign currency forward contract  $134   £105   Bannockburn Global Forex, LLC  10/1/2019   1 
Foreign currency forward contract  $295   £230   Bannockburn Global Forex, LLC  11/29/2019   3 
Foreign currency forward contract  $133   £104   Bannockburn Global Forex, LLC  1/2/2020   1 
Foreign currency forward contract  $296   £231   Bannockburn Global Forex, LLC  2/28/2020   3 
Foreign currency forward contract  $132   £103   Bannockburn Global Forex, LLC  4/1/2020   1 
Foreign currency forward contract  $130   £102   Bannockburn Global Forex, LLC  5/5/2020   1 
Foreign currency forward contract  $296   £230   Bannockburn Global Forex, LLC  5/29/2020   3 
Foreign currency forward contract  $295   £230   Bannockburn Global Forex, LLC  8/28/2020   3 
Foreign currency forward contract  $294   £229   Bannockburn Global Forex, LLC  11/30/2020   3 
                   $23 

 

 

(a)All of our investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of our investments are issued by U.S. portfolio companies unless otherwise noted.
(b)The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or Prime Rate (“Prime” or “P”) which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR or Prime and the current contractual interest rate in effect at June 30, 2019. Certain investments are subject to a LIBOR or Prime interest rate floor, or rate cap.
(c)Except as otherwise noted, all of the Company’s portfolio company investments, which as of June 30, 2019 represented 246.5% of the Company’s net assets or 94.4% of the Company’s total assets, are subject to legal restrictions on sales.
(d)Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs by our board of directors as required by the Investment Company Act of 1940. (See Note 4 in the accompanying notes to the consolidated financial statements.)
(e)Percentages are based on net assets of $255,888 as of June 30, 2019.
(f)All or a portion of this commitment was unfunded at June 30, 2019. As such, interest is earned only on the funded portion of this commitment.
(g)This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.
(h)This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of June 30, 2019, non-qualifying assets totaled 16.7% of the Company’s total assets.
(i)The PIK portion of the interest rate for HFZ Capital Group, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.17% per annum.
(j)This investment represents a note convertible to preferred shares of the borrower.
(k)All of this loan is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(l)This is an international company.
(m)This is a demand note with no stated maturity.
(n)This position was on non-accrual status as of June 30, 2019, meaning that the Company has ceased accruing interest income on the position. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s accounting policies.
(o)This loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date.
(p)A portion of the PIK interest rate for TRG, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 4.13% per annum.
(q)A portion of this loan (principal of $17,218) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.

 

 14 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2019

(in thousands, except for shares and units)

 

(r)The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan, in which case th