497 1 d570115d497.htm 497 497

Filed pursuant to Rule 497
File No. 333-175624

 

LOGO

Maximum Offering of 150,000,000 Shares of Common Stock

Sierra Income Corporation

Common Stock

 

 

Supplement No. 6 dated July 23, 2013

to

Prospectus dated April 30, 2013

 

 

This Supplement No. 6 contains information which amends, supplements, or modifies certain information contained in the Prospectus of Sierra Income Corporation (the “Company”) dated April 30, 2013 (the “Prospectus”), Supplement No. 1 to the Prospectus dated May 16, 2013, Supplement No. 2 to the Prospectus dated May 31, 2013, Supplement No. 3 to the Prospectus dated June 18, 2013, Supplement No. 4 to the Prospectus dated June 28, 2013, and Supplement No. 5 to the Prospectus dated July 1, 2013.

You should carefully consider the “Risk Factors” beginning on page 28 of the Prospectus before you decide to invest.

Status of Our Offering and Investment Activity

Since commencing operations, we have raised a total of approximately $68.8 million, which includes the issuance of 1,108,033.24 shares of our common stock to SIC Advisors LLC (“SIC Advisors”) in exchange for gross proceeds of $10 million immediately following the effectiveness of our registration statement. As of July 19, 2013, we have combined proceeds, as well as a modest amount of leverage through a prime brokerage account with Barclays Capital Inc., to invest $74.7 million across 46 transactions, the details of which are listed below.

 

Company

    Sector    Security Type    Maturity      Interest
Rate *		     Principal
Amount
($’MM)		  

Aderant North America, Inc.

    Electronics    Senior Secured
Second Lien Term Loan		      6/20/2019         10.000 %    $ 0.45   

Alcatel-Lucent USA, Inc.

    Communications    Senior Secured
First Lien Term Loan		      1/30/2019         6.250 %      1.00   

ALG USA Holdings, Inc.

    Travel and
Entertainment		    Senior Secured
Second Lien Term Loan		      2/28/2020         10.250 %      2.00   

American Apparel, Inc.

    Retail Stores    Senior Secured Note      4/15/2020         13.000 %      2.50   

Associated Asphalt Partners, LLC

    Business Services    Senior Secured Note      2/15/2018         8.500 %      1.50   

Atkore International, Inc.

    Mining, Steel, Iron, and
Nonprecious Metals		    Senior Secured Note      1/1/2018         9.875 %      0.75   

Bon-Ton Stores, Inc.

    Retail Stores    Senior Secured Note      7/15/2017         10.625 %      1.70   

Caesars Entertainment Operating Co., Inc.

    Gaming    Senior Secured Note      6/1/2017         11.250 %      3.00   

Camp Systems International, Inc.

    Aerospace & Defense    Senior Secured
Second Lien Term Loan		      11/30/2019         10.000 %      0.50   

Checkers Drive-In Restaurants, Inc.

    Restaurant & Franchise    Senior Secured Note      12/1/2017         11.000 %      1.50   

 

1

Company

    Sector   Security Type    Maturity      Interest
Rate *		     Principal
Amount
($’MM)		  

Clondalkin Acquisitions B.V.

    Personal and
Nondurable Consumer
Products
(Manufacturing Only)		   Senior Secured
Second Lien Term Loan		      11/30/2020         10.000 %    $ 2.00   

Cornerstone Chemical Company

    Chemicals   Senior Secured Note      3/15/2018         9.375 %      4.50   

Deltek, Inc.

    Software   Senior Secured
Second Lien Term Loan		      10/10/2019         10.000 %      3.00   

Dispensing Dynamics International, Inc.

    Personal and
Nondurable Consumer
Products
(Manufacturing Only)		   Senior Secured Note      1/1/2018         12.500 %      2.20   

EarthLink, Inc.

    Telecommunications   Senior Secured Note      6/1/2020         7.375 %      0.45   

Erickson Air-Crane, Inc.

    Industrial   Senior Secured Note      5/1/2020         8.250 %      0.20   

Fifth and Pacific Companies

    Retail Stores   Senior Secured Note      4/15/2019         10.500 %      0.50   

Gastar Exploration USA, Inc.

    Energy   Senior Secured Note      5/15/2018         8.625 %      3.00   

Getco Financing Escrow LLC

    Business Services   Senior Secured Note      6/15/2018         8.250 %      3.00   

Great Atlantic & Pacific Tea Company

    Grocery   Senior Secured
First Lien Term Loan		      3/13/2017         11.000 %      0.94   

Green Field Energy Services, Inc.

    Oil and Gas   Senior Secured Note      11/15/2016         13.000 %      0.72   

Healogics, Inc.

    Healthcare, Education,
and Childcare		   Senior Secured
Second Lien Term Loan		      2/5/2020         8.000 %      1.50   

IDQ Holdings, Inc.

    Automobile   Senior Secured Note      4/1/2017         11.500 %      1.00   

Ineos Finance PLC

    Chemicals   Senior Secured Note      5/1/2020         7.500 %      1.25   

Integra Telecom, Inc.

    Telecommunications   Senior Secured
Second Lien Term Loan		      2/15/2020         9.750 %      1.62   

Interface Security Systems Holdings, Inc.

    Business Services   Senior Secured Note      1/15/2018         9.250 %      3.42   

IronGate Energy Services LLC

    Energy   Senior Secured Note      7/1/2018         11.000 %      3.00   

Linc Energy Finance (USA), Inc.

    Oil and Gas   Senior Secured Note      10/31/2017         12.500 %      1.00   

Liquidnet Holdings, Inc.

    Business Services   Senior Secured
First Lien Term Loan		      5/7/2017         9.250 %      2.96   

Livingston International, Inc.

    Business Services   Senior Secured
Second Lien Term Loan		      4/18/2020         9.000 %      1.00   

Maxim Crane Works Holdings, Inc.

    Industrial   Senior Secured Note      4/15/2015         12.250 %      1.50   

Mohegan Tribal Gaming Authority

    Gaming   Senior Secured Note      11/1/2017         11.500 %      1.00   

Murray Energy Corp.

    Energy   Senior Secured Note      6/15/2021         8.625 %      0.10   

Pittsburgh Glass Works, LLC

    Automobile   Senior Secured Note      4/15/2016         8.500 %      1.43   

Prince Minerals Holding Corp.

    Mining, Steel, Iron, and
Nonprecious Metals		   Senior Secured Note      12/15/2019         11.500 %      1.20   

Reddy Ice Group, Inc.

    Beverage, Food, and
Tobacco		   Senior Secured
Second Lien Term Loan		      10/1/2019         10.750 %      2.00   

 

2

Company

    Sector    Security Type    Maturity      Interest
Rate *		     Principal
Amount
($’MM)		  

Satmex Mexicanos, S.A. de C.V.

    Telecommunications    Senior Secured Note      5/15/2017         9.500 %    $ 1.00   

School Specialty, Inc.

    Healthcare, Education,
and Childcare		    Senior Secured
First Lien Term Loan		      5/31/2019         9.500 %      2.50   

Securus Technologies, Inc.

    Telecommunications    Senior Secured
Second Lien Term Loan		      4/30/2021         9.000 %      2.00   

Sesac Holdco II, LLC

    Business Services    Senior Secured
Second Lien Term Loan		      7/12/2019         8.750 %      0.75   

Shale-Inland Holdings, Inc.

    Energy    Senior Secured Note      11/15/2019         8.750 %      1.00   

Sizzling Platter, LLC

    Restaurant & Franchise    Senior Secured Note      4/15/2016         12.250 %      2.06   

Sorenson Communications

    Communications    Senior Secured
First Lien Term Loan		      10/31/2014         9.500 %      2.00   

Tempel Steel Company

    Mining, Steel, Iron, and
Nonprecious Metals		    Senior Secured Note      8/15/2016         12.000 %      1.12   

Tower International, Inc.

    Automobile    Senior Secured Note      9/1/2017         10.625 %      0.06   

US Well Services, LLC

    Oil and Gas    Senior Secured Note      2/15/2017         14.500 %      2.82   

Total

               $ 74.68   

 

* Reflects the current interest rate as of July 19, 2013.

Appointment of Jeff Tonkel as President

On July 12, 2013, Seth Taube, the Chairman of the Board of Directors (the “Board”), Chief Executive Officer and President of the Company, resigned from his position as President of the Company. On the same date, the Board appointed Jeff Tonkel, a Principal of the Company’s investment adviser, SIC Advisors, and a Partner of Medley LLC, to serve as the President of the Company in Mr. Taube’s place. Mr. Taube remains the Chairman of the Board and Chief Executive Officer of the Company.

In connection with the foregoing, this supplement revises the disclosure in the Prospectus as follows:

 

  •  

The following tables on page 74 of the Prospectus are replaced with the following disclosure:

Directors

Information regarding the board of directors is as follows:

 

Name

    Age     

Position

    Director
Since		      Expiration
of Term		  

Interested Directors:

            

Seth Taube

      43       Director, Chairman of the Board, and Chief Executive Officer      2012         2015   

Brook Taube

      43       Director      2012         2014   

Independent Directors:

            

Spencer Neumann

      43       Director      2012         2016   

Valerie Lancaster Beal

      57       Director      2012         2015   

Stephen R. Byers

      59       Director      2012         2014   

The address for each director is c/o Sierra Income Corporation, 375 Park Ave, 33rd Floor, New York, NY 10152.

 

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Executive Officers Who are not Directors

Information regarding our executive officers who are not directors is as follows:

 

Name

    Age     

Position

Jeff Tonkel

      41       President

Richard T. Allorto, Jr.

      41       Chief Financial Officer, Treasurer, Chief Compliance Officer and Secretary

The address for each executive officer is c/o Sierra Income Corporation, 375 Park Ave, 33rd Floor, New York, NY 10152.

 

  •  

Seth Taube’s biography on page 74 of the Prospectus is replaced with the following disclosure:

Interested Directors

Seth Taube is the Chairman of the board of directors and Chief Executive Officer of the Company. Mr. Taube is also Chief Executive Officer of SIC Advisors, a Partner of Medley, a Senior Portfolio Manager of the Medley Opportunity Funds and a member of the Board of Directors of Medley Capital Corporation. Prior to forming Medley Mr. Taube was a Partner with CN Opportunity Fund where he was a Portfolio Manager for the firm’s global investment fund. Prior to CN Opportunity Fund, Mr. Taube co-founded T3 Group, a principal and advisory firm focused on distressed asset and credit investments. Prior to T3, Mr. Taube worked with Griphon Capital Management, serving as Managing Director of the firm’s private investment activities. Prior to Griphon, Mr. Taube was a Vice President with Tiger Management, and held positions with Morgan Stanley & Co. in the Investment Banking and Institutional Equity Divisions. Mr. Taube also serves on the board of directors of Medley Capital Corporation. Mr. Taube received a B.A. from Harvard University, an M.Litt. in Economics from St. Andrew’s University in Great Britain, where he was a Rotary Foundation Fellow, and an M.B.A. from the Wharton School at the University of Pennsylvania.

We believe that Mr. Taube’s broad and extensive experience in asset and credit management and finance industries and his service as portfolio manager for several Medley affiliates supports his appointment to our board of directors.

 

  •  

Jeff Tonkel’s biography, as set forth below, is added to page 76 of the Prospectus as the first biography under “Executive Officers Who are not Directors”:

Jeff Tonkel is the President of the Company. Mr. Tonkel is also a Principal of SIC Advisors and a Partner of Medley LLC. Mr. Tonkel serves on the investment committee and is a member of Medley LLC’s Executive Management Committee. In addition, Mr. Tonkel oversees the capital markets and structured finance activities for Medley LLC and is actively engaged in the management of Medley Capital Corporation, a publicly traded business development company. Prior to his time with SIC Advisors and Medley LLC, Mr. Tonkel was a Managing Director with JP Morgan, where he was Chief Financial Officer of a global financing and markets business. Prior to JP Morgan, Mr. Tonkel was a Managing Director, Principal Investments, with Friedman Billings Ramsey where he focused on Merchant Banking and Corporate Development investments in diversified industrials, energy, real estate and specialty finance. Mr. Tonkel began his investment career with Summit Partners, a leading equity and subordinated debt investor in privately held growth companies. Mr. Tonkel received a B.A. from Harvard University and an M.B.A. from Harvard Business School.

 

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  •  

The Beneficial Ownership table in the section of the Prospectus entitled “Control Persons and Principal Holders of Securities” on page 95 of the Prospectus is replaced in its entirety with the following disclosure:

Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities. There is no common stock subject to options that are currently exercisable or exercisable within 60 days of the offering. Percentage of beneficial ownership is based on 6,955,372 shares of common stock outstanding as of July 19, 2013.

 

     Shares Beneficially Owned As
of the date of this Prospectus		  

Name

    Number     Percentage  

5% or Greater Stockholder:

     

SIC Advisors LLC

      1,108,144.04        15.9%   

Executive Officers:(1)

     

Jeff Tonkel

      —        —   

Richard T. Allorto, Jr.

      —        —   

Interested Directors:(1)

     

Seth Taube

      1,108,144.04 (2)      15.9%   

Brook Taube

      1,108,144.04 (2)      15.9%   

Independent Directors:(1)

     

Spencer Neumann

      —        —   

Valerie Lancaster Beal

      —        —   

Stephen R. Byers

      —        —   

All officers and directors as a group (seven persons)

      1,108,144.04        15.9%   

 

  * Represents less than 1%.

 

  (1) The address for all officers and directors is c/o Medley LLC, 375 Park Ave., 33rd Floor, New York, NY 10152.

 

  (2) The record holder of these shares is SIC Advisors. Brook Taube and Seth Taube indirectly control SIC Advisors with Andrew Fentress and, as a result, may be deemed to be the beneficial owner of the shares held by SIC Advisors.

 

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