10-Q 1 sicp20210331_10q.htm FORM 10-Q sicp20210331_10q.htm
 

 

Table of Contents



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________________

Form 10-Q

____________________________________________________

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended March 31, 2021
 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to             

Commission file number: 814-00924

_____________________________________________________

Sierra Income Corporation

(Exact Name of Registrant as Specified in its Charter)

_____________________________________________________

 

Maryland

 

45-2544432

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer
Identification No.)

280 Park Avenue, 6th Floor East, New York, NY 10017

(Address of Principal Executive Offices)

 

(212) 759-0777

(Registrants Telephone Number, Including Area Code)

___________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

___________________________________________________

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

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (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  ☒    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 during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☐    No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See 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
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  ☒

 

As of May 14, 2021, the Registrant had 102,526,411 shares of common stock, $0.001 par value, outstanding.



 

 

 

TABLE OF CONTENTS

 

Part I. Financial Information

 

Item 1. Financial Statements

 

Consolidated Statements of Assets and Liabilities as of March 31, 2021 (unaudited) and December 31, 2020

F-1

Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020 (unaudited)

F-2

Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2021 and 2020 (unaudited)

F-3

Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited)

F-4

Consolidated Schedule of Investments as of March 31, 2021 (unaudited)

F-5

Consolidated Schedule of Investments as of December 31, 2020

F-13

Notes to Consolidated Financial Statements (unaudited)

F-21

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

1

Item 3. Quantitative and Qualitative Disclosures About Market Risk

15

Item 4. Controls and Procedures

16

Part II. Other Information

 

Item 1. Legal Proceedings

16

Item 1A. Risk Factors

16

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

17

Item 3. Defaults Upon Senior Securities

17

Item 4. Mine Safety Disclosures

17

Item 5. Other Information

17

Item 6. Exhibits

17

SIGNATURES

18

 

 

 

Sierra Income Corporation

Consolidated Statements of Assets and Liabilities

 

   

March 31, 2021

   

December 31, 2020

 

ASSETS

 

(unaudited)

         

Investments at fair value

               

Non-controlled/non-affiliated investments (amortized cost of $528,108,044 and $521,483,006 respectively)

  $ 490,961,638     $ 472,813,820  

Controlled/affiliated investments (amortized cost of $180,173,971 and $179,520,933 respectively)

    135,324,835       131,172,660  

Investments at fair value

    626,286,473       603,986,480  

Cash and cash equivalents

    66,581,275       65,301,216  

Interest receivable from investments

    4,972,303       3,943,980  

Unsettled trades receivable

    1,604,750       2,541,500  

Prepaid expenses and other assets

    1,216,539       1,934,866  

Total assets

  $ 700,661,340     $ 677,708,042  
                 

LIABILITIES

               

Revolving credit facilities payable (net of deferred financing costs of $229,310 and $659,266, respectively) (Note 5)

  $ 144,770,690     $ 144,340,734  

Unsettled trades payable

    5,092,500       11,061  

Base management fees payable (Note 6)

    3,066,397       2,967,857  

Accounts payable and accrued expenses

    2,549,163       1,406,175  

Deferred tax liability

    1,582,627       2,390,596  

Administrator fees payable (Note 6)

    643,620       401,260  

Interest payable

    473,263       449,420  

Total liabilities

    158,178,260       151,967,103  
                 

Commitments (Note 10)

               
                 

NET ASSETS

               

Common shares, par value $0.001 per share, 250,000,000 common shares authorized, 102,839,640 and 102,630,605 common shares issued and outstanding, respectively

  $ 102,840     $ 102,631  

Capital in excess of par value

    851,722,263       850,737,609  

Total distributable earnings/(loss)

    (309,342,023 )     (325,099,301 )

Total net assets

    542,483,080       525,740,939  

Total liabilities and net assets

  $ 700,661,340     $ 677,708,042  

NET ASSET VALUE PER COMMON SHARE

  $ 5.28     $ 5.12  

 

See accompanying notes to consolidated financial statements.

 

 

 

Sierra Income Corporation

Consolidated Statements of Operations

(unaudited)

 

   

Three Months Ended

 
   

March 31,

 
   

2021

   

2020

 

INVESTMENT INCOME

               

Interest and dividend income from investments

               

Non-controlled/non-affiliated investments:

               

Cash

  $ 9,127,886     $ 7,325,853  

Payment-in-kind

    436,461       537,045  

Controlled/affiliated investments:

               

Cash

    1,903,714       1,846,077  

Payment-in-kind

    94,169       114,763  

Total interest and dividend income

    11,562,230       9,823,738  

Fee income (Note 11)

    356,758       121,698  

Interest from cash and cash equivalents

    5,667       1,231,375  

Total investment income

    11,924,655       11,176,811  
                 

EXPENSES

               

Base management fees (Note 6)

    3,066,397       3,251,451  

Interest and financing expenses

    1,687,059       4,287,663  

General and administrative expenses

    1,611,627       1,970,968  

Professional fees

    724,182       118,054  

Administrator expenses (Note 6)

    643,620       721,632  

Offering costs

          3,243  

Total expenses

    7,732,885       10,353,011  
                 
Income tax expense     1,253,011        
                 

NET INVESTMENT INCOME/(LOSS)

    2,938,759       823,800  
                 

REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS

               

Net realized gain/(loss) from non-controlled/non-affiliated investments

    33,031       (14,913 )

Net realized gain/(loss) from controlled/affiliated investments

    37,764       232,392  

Net change in unrealized appreciation/(depreciation) on non-controlled/non-affiliated investments

    11,521,587       (88,998,580 )

Net change in unrealized appreciation/(depreciation) on controlled/affiliated investments

    3,499,137       (31,524,640 )

Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments

    807,969       240,935  

Net realized and unrealized gain/(loss) on investments

    15,899,488       (120,064,806 )

NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ 18,838,247     $ (119,241,006 )
                 

WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS/(LOSS) PER COMMON SHARE

  $ 0.18     $ (1.16 )

WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME/(LOSS) PER COMMON SHARE

  $ 0.03     $ 0.01  

WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (NOTE 9)

    102,771,859       102,715,153  

DISTRIBUTIONS DECLARED PER COMMON SHARE

  $ 0.03     $ 0.11  

 

See accompanying notes to the consolidated financial statements.

 

 

 

Sierra Income Corporation

Consolidated Statements of Changes in Net Assets

(unaudited)

 

   

Common Stock

                         
           

Par

   

Paid in Capital

   

Distributable

   

Total

 
   

Shares

   

Amount

   

in Excess of Par

   

Earnings

   

Net Assets

 

Balance at December 31, 2019

    102,282,366     $ 102,282     $ 869,567,685     $ (278,607,246 )   $ 591,062,721  

Net increase (decrease) in net assets resulting from operations:

                                       

Net investment income/(loss)

                      823,800       823,800  

Net realized gain (loss) on investments

                      217,479       217,479  

Net change in unrealized appreciation/(depreciation) on investments

                      (120,523,220 )     (120,523,220 )
Change in provision for deferred taxes on unrealized appreciate/(depreciation) on investments                       240,935       240,935  

Shareholder distributions:

                                       

Issuance of common shares pursuant to distribution reinvestment plan

    710,046       711       3,842,420             3,843,131  

Repurchase of common shares

    (124,861 )     (125 )     (721,569 )           (721,694 )

Distributions from earnings

                      (10,691,828 )     (10,691,828 )

Total increase/(decrease) for the three months ended March 31, 2020

    585,185       586       3,120,851       (129,932,834 )     (126,811,397 )

Balance at March 31, 2020

    102,867,551     $ 102,868     $ 872,688,536     $ (408,540,080 )   $ 464,251,324  
                                         

Balance at December 31, 2020

    102,630,605     $ 102,631     $ 850,737,609     $ (325,099,301 )   $ 525,740,939  

Net increase (decrease) in net assets resulting from operations:

                                       

Net investment income/(loss)

                      2,938,759       2,938,759  

Net realized gain (loss) on investments

                      70,795       70,795  

Net change in unrealized appreciation/(depreciation) on investments

                      15,020,724       15,020,724  

Change in provision for deferred taxes on unrealized appreciate/(depreciation) on investments

                      807,969       807,969  
Shareholder distributions:                                        
Issuance of common shares pursuant to distribution reinvestment plan     211,486       211       1,025,975             1,026,186  

Repurchase of common shares

    (2,451 )     (2 )     (41,321 )           (41,323 )

Distributions from earnings

                      (3,080,969 )     (3,080,969 )

Total increase/(decrease) for the three months ended March 31, 2021

    209,035       209       984,654       15,757,278       16,742,141  

Balance at March 31, 2021

    102,839,640     $ 102,840     $ 851,722,263     $ (309,342,023 )   $ 542,483,080  

 

See accompanying notes to consolidated financial statements.

 

 

 

Sierra Income Corporation

Consolidated Statements of Cash Flows

(unaudited)

 

   

Three Months Ended March 31,

 
   

2021

   

2020

 

Cash flows from operating activities

               

NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:

  $ 18,838,247     $ (119,241,006 )

ADJUSTMENT TO RECONCILE NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES:

               

Payment-in-kind interest income

    (530,630 )     (651,808 )

Net amortization of premium on investments

    (140,980 )     148,646  

Amortization of deferred financing costs

    429,956       485,291  

Net realized (gain)/loss on investments

    (70,795 )     (217,479 )

Net change in unrealized (appreciation)/depreciation on investments

    (15,020,724 )     120,523,220  

Purchases and originations

    (40,550,367 )     (36,713,624 )

Proceeds from sale of investments and principal repayments

    34,013,503       24,253,640  

(Increase)/decrease in operating assets:

               

Unsettled trades receivable

    936,750       (302,519 )

Interest receivable from investments

    (1,028,323 )     4,172,989  

Deferred transaction costs

          (714,684 )

Prepaid expenses and other assets

    718,327       475,603  
Increase/(decrease) in operating liabilities:                

Unsettled trades payable

    5,081,439        

Base management fee payable

    98,540       (809,067 )

Accounts payable and accrued expenses

    1,142,988       484,691  

Administrator fees payable

    242,360       339,709  

Interest payable

    23,843       (227,390 )

Deferred tax liability

    (807,969 )     (240,935 )

NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES

    3,376,165       (8,234,723 )

Cash flows from financing activities:

               

Repayments of revolving credit facility

          (60,000,000 )

Payment of cash distributions

    (2,054,783 )     (4,513,897 )

Financing costs paid

          (50,926 )

Repurchase of common shares

    (41,323 )     (721,694 )

NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES

    (2,096,106 )     (65,286,517 )

TOTAL INCREASE/(DECREASE) IN CASH

    1,280,059       (73,521,240 )

CASH, CASH EQUIVALENTS AT BEGINNING OF PERIOD

    65,301,216       225,316,656  

CASH, CASH EQUIVALENTS AT END OF PERIOD

  $ 66,581,275     $ 151,795,416  

Supplemental Information:

               

Cash paid during the period for interest

  $ 1,233,260     $ 4,029,762  

Supplemental non-cash information:

               

Issuance of common shares in connection with distribution reinvestment plan

  $ 1,026,186     $ 3,843,131  

 

 

 

See accompanying notes to consolidated financial statements.

 

 

 

Sierra Income Corporation

Consolidated Schedule of Investments

As of March 31, 2021

(unaudited)

 

Company(1)(2)

 

Industry

 

Type of Investment

 

Maturity

 

Par Amount

   

Cost

   

Fair Value

   

% of Net Assets(3)

 

Non-controlled/non-affiliated investments –

  90.5%                                        
                                             

AAAHI Acquisition Corporation

 

Transportation: Consumer

 

Senior Secured First Lien Term Loan LIBOR + 8.250%, 1.000% Floor (4) (5) (6)

 

12/10/2023

  $ 7,171,475     $ 6,872,257     $ 5,020,032       0.9 %
                  7,171,475       6,872,257       5,020,032          
AAdvantage Loyality IP Ltd.   Transportation: Consumer   Senior Secured First Lien Term Loan LIBOR + 4.750%, 0.750% Floor (9)   4/20/2028     1,000,000       990,000       990,000       0.2 %
        Senior Secured First Lien Notes 5.750% (7) (9)   4/20/2029     1,000,000       1,000,000       1,000,000       0.2 %
                  2,000,000       1,990,000       1,990,000          

Alpine SG, LLC

 

High Tech Industries

 

Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor (4) (5) (12)

 

11/16/2022

    1,262,051       1,234,720       1,305,213       0.2 %
       

Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.750%, 1.000% Floor (4) (5)

 

11/16/2022

    6,165,725       6,165,643       6,116,399       1.1 %
       

Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor (4) (5)

 

11/16/2022

    12,529,258       12,519,035       12,429,023       2.3 %
                  19,957,034       19,919,398       19,850,635          

American Dental Partners, Inc.

 

Healthcare & Pharmaceuticals

 

Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor (4) (5)

 

9/25/2023

    4,893,750       4,893,750       4,749,384       0.9 %
                  4,893,750       4,893,750       4,749,384          

Amerijet Holdings, Inc.

 

Transportation: Cargo

 

Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor (5) (8)

 

7/15/2021

    2,746,268       2,746,268       2,746,268       0.5 %
                  2,746,268       2,746,268       2,746,268          

AMMC CLO 22, Limited Series 2018-22A

 

Multi-Sector Holdings

 

Subordinated Notes 13.429% effective yield (7) (9) (10)

 

4/25/2031

    7,222,000       5,288,931       4,827,907       0.9 %
                  7,222,000       5,288,931       4,827,907          

AMMC CLO 23, Ltd. Series 2020-23A

 

Multi-Sector Holdings

 

Subordinated Notes 19.100% effective yield (7) (9) (10)

 

10/17/2031

    2,000,000       1,688,071       1,724,200       0.3 %
                  2,000,000       1,688,071       1,724,200          

Answers Finance, LLC

 

High Tech Industries

 

Common Stock - 388,533 shares (11)

          4,769,445             %
                        4,769,445                

Apidos CLO XXIV, Series 2016-24A

 

Multi-Sector Holdings

 

Subordinated Notes 8.894% effective yield (5) (7) (9) (10)

 

7/20/2027

    18,357,647       9,906,069       9,364,236       1.7 %
                  18,357,647       9,906,069       9,364,236          

Arrow International Inc.

 

Hotel, Gaming & Leisure

 

Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.250% Floor (4)

 

12/21/2025

    10,000,000       10,000,000       10,046,000       1.9 %
                  10,000,000       10,000,000       10,046,000          

Aviation Technical Services, Inc.

 

Aerospace & Defense

 

Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor (4) (5)

 

3/31/2022

    25,000,000       25,000,000       22,365,000       4.1 %
                  25,000,000       25,000,000       22,365,000          

 

 

Company(1)(2)

 

Industry

 

Type of Investment

 

Maturity

 

Par Amount

   

Cost

   

Fair Value

   

% of Net Assets(3)

 

Brook & Whittle Holding Corp.

 

Containers, Packaging & Glass

 

Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.250%, 1.000% Floor (4) (5)

 

10/17/2024

    699,967       697,598       686,458       0.1 %
       

Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor (4) (5)

 

10/17/2024

    2,976,219       2,966,146       2,918,778       0.5 %
                  3,676,186       3,663,744       3,605,236          

CM Finance SPV LLC

 

Banking, Finance, Insurance & Real Estate

 

Subordinated Notes 3.000% (5)

 

6/24/2021

    35,600       35,600       35,600       %
                  35,600       35,600       35,600          

CPI International, Inc.

 

Aerospace & Defense

 

Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor (5) (8)

 

7/28/2025

    8,575,302       8,559,759       7,989,609       1.5 %
                  8,575,302       8,559,759       7,989,609          

CT Technologies Intermediate Holdings, Inc.

 

Healthcare & Pharmaceuticals

 

Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor (5) (8)

 

12/16/2025

    7,000,000       6,966,977       7,007,700       1.3 %
                  7,000,000       6,966,977       7,007,700          

DataOnline Corp.

 

High Tech Industries

 

Revolving Credit Facility LIBOR + 6.250%, 1.000% Floor (4) (5) (12)

 

11/13/2025

    1,821,429       1,821,429       1,784,143       0.3 %
       

Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor (4) (5)

 

11/13/2025

    14,850,000       14,850,000       14,591,610       2.7 %
                  16,671,429       16,671,429       16,375,753          

Dryden 43 Senior Loan Fund, Series 2016-43A

 

Multi-Sector Holdings

 

Subordinated Notes 8.262% effective yield (5) (7) (9) (10)

 

7/20/2029

    3,620,000       2,432,720       2,280,962       0.4 %
                  3,620,000       2,432,720       2,280,962          

Dryden 49 Senior Loan Fund, Series 2017-49A

 

Multi-Sector Holdings

 

Subordinated Notes 9.989% effective yield (5) (7) (9) (10)

 

7/18/2030

    17,233,288       11,996,289       10,143,513       1.9 %
                  17,233,288       11,996,289       10,143,513          

Envision Healthcare Corporation

 

Healthcare & Pharmaceuticals

 

Senior Secured First Lien Term Loan LIBOR + 3.750% (5) (8)

 

10/10/2025

    48,875       33,791       42,047       %
                  48,875       33,791       42,047          

Friedrich Holdings, Inc.

 

Construction & Building

 

Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (5) (8)

 

2/7/2023

    10,394,850       10,394,850       10,309,612       1.9 %
                  10,394,850       10,394,850       10,309,612          

GK Holdings, Inc.

 

Services: Business

 

Senior Secured Second Lien Term Loan LIBOR + 10.250%, 1.000% Floor (4) (6)

 

1/20/2022

    10,000,000       10,000,000       5,500,000       1.0 %
                  10,000,000       10,000,000       5,500,000          

 

 

Company(1)(2)

 

Industry

 

Type of Investment

 

Maturity

 

Par Amount

   

Cost

   

Fair Value

   

% of Net Assets(3)

 

Glass Mountain Pipeline Holdings, LLC

 

Energy: Oil & Gas

 

Senior Secured First Lien Term Loan LIBOR + 4.500%, 1.000% Floor (5) (6) (8)

 

12/23/2024

    48,500       23,854       16,684       %
                  48,500       23,854       16,684          

Golden West Packaging Group LLC

 

Forest Products & Paper

 

Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor (5) (8)

 

6/20/2023

    1,323,073       1,323,073       1,315,929       0.2 %
                  1,323,073       1,323,073       1,315,929          

Holland Acquisition Corp.

 

Energy: Oil & Gas

 

Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor (4) (6) (13)

 

5/29/2020

    3,754,497       3,634,434             %
                  3,754,497       3,634,434                

Hylan Datacom & Electrical LLC

 

Construction & Building

 

Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor (4) (5)

 

7/25/2022

    15,370,038       15,370,038       12,296,030       2.3 %
                  15,370,038       15,370,038       12,296,030          

Impact Group, LLC

 

Services: Business

 

Senior Secured First Lien Term Loan LIBOR + 7.370%, 1.000% Floor (4) (5)

 

6/27/2023

    5,688,042       5,688,042       5,540,153       1.0 %
                  5,688,042       5,688,042       5,540,153          

Innovative XCessories & Services, LLC

 

Automotive

 

Senior Secured First Lien Term Loan LIBOR + 5.200%, 1.000% Floor (5) (14)

 

3/5/2027

    2,969,243       2,943,952       2,965,087       0.5 %
                  2,969,243       2,943,952       2,965,087          

Interflex Acquisition Company, LLC

 

Containers, Packaging & Glass

 

Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor (5) (8)

 

8/18/2022

    11,371,703       11,363,162       11,371,703       2.1 %
                  11,371,703       11,363,162       11,371,703          

Iqor US Inc.

 

Services: Business

 

Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor (5) (8)

 

11/19/2024

    3,335,567       3,274,293       3,260,517       0.6 %
       

Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor (8)

 

11/19/2025

    7,392,831       7,392,831       7,448,277       1.4 %
       

Equity - 158,959 Shares (11)

          1,907,509       2,106,207       0.4 %
                  10,728,398       12,574,633       12,815,001          

Isagenix International, LLC

 

Wholesale

 

Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor (4) (5)

 

6/16/2025

    1,743,875       1,714,131       1,284,015       0.2 %
                  1,743,875       1,714,131       1,284,015          

Isola USA Corp.

 

High Tech Industries

 

Senior Secured Second Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK (4) (6) (12)

 

1/2/2023

    11,615,718       6,986,729       9,292,575       1.7 %
       

Common Units - 10,283,782 units (11)

                      %
                  11,615,718       6,986,729       9,292,575          

Ivanti Software, Inc.

 

High Tech Industries

 

Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor (5) (8)

 

12/1/2028

    6,000,000       6,000,000       5,947,800       1.1 %
                  6,000,000       6,000,000       5,947,800          

JFL-WCS Partners, LLC

 

Environmental Industries

 

Preferred units - 618,876 6.000%, PIK (5)

          659,447       709,806       0.1 %
       

Common Units - 70,412 units (5) (11)

          98,052       5,069,664       0.9 %
                        757,499       5,779,470          
JFL-NGS Partners, LLC   Environmental Industries   Preferred units - 6,375,000 units 12.500%           6,354,478       6,354,283       1.2 %
        Common Units - 3,252.95 units (11)           1,125,000       1,125,000       0.2 %
                        7,479,478       7,479,283          

 

 

Company(1)(2)

 

Industry

 

Type of Investment

 

Maturity

 

Par Amount

   

Cost

   

Fair Value

   

% of Net Assets(3)

 
K&N Parent, Inc.   Automotive   Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor (8)   10/21/2024     2,000,000       1,715,972       1,715,000       0.3 %
                  2,000,000       1,715,972       1,715,000          

Keystone Acquisition Corp.

 

Healthcare & Pharmaceuticals

 

Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor (4) (5)

 

5/1/2024

    1,779,520       1,735,664       1,703,891       0.3 %
       

Senior Secured Second Lien Term Loan LIBOR + 9.250%, 1.000% Floor (4) (5)

 

5/1/2025

    7,000,000       6,926,230       6,511,400       1.2 %
                  8,779,520       8,661,894       8,215,291          

KNB Holdings Corporation

 

Consumer Goods: Durable

 

Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor (8)

 

4/26/2024

    1,972,973       1,451,410       1,749,830       0.3 %
                  1,972,973       1,451,410       1,749,830          

Lifestyle Intermediate II, LLC

 

Consumer Goods: Durable

 

Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor (5) (12)

 

1/26/2026

    3,234,510       3,234,510       3,234,510       0.6 %
                  3,234,510       3,234,510       3,234,510          

LogMeIn, Inc.

 

High Tech Industries

 

Senior Secured First Lien Term Loan LIBOR + 7.750%, 1.000% Floor (5) (8)

 

8/31/2027

    1,995,000       1,969,268       1,989,015       0.4 %
                  1,995,000       1,969,268       1,989,015          

Magnetite XIX, Limited

 

Multi-Sector Holdings

 

Subordinated Notes LIBOR + 7.610% (4) (7) (9) (10)

 

7/17/2030

    2,000,000       1,893,387       1,980,200       0.4 %
        Subordinated Notes LIBOR + 8.770% (4) (7) (9) (10)   4/17/2034     5,250,000       5,092,500       5,092,500       0.9 %
       

Subordinated Notes 9.779% effective yield (5) (7) (9) (10)

 

7/17/2030

    13,730,209       9,154,651       8,269,705       1.5 %
                  20,980,209       16,140,538       15,342,405          

Novetta Solutions, LLC

 

High Tech Industries

 

Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor (4) (5)

 

10/17/2022

    1,556,671       1,523,226       1,545,463       0.3 %
       

Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor (4) (5)

 

10/16/2023

    11,000,000       10,955,272       10,676,600       2.0 %
                  12,556,671       12,478,498       12,222,063          

Offen Inc.

 

Transportation: Cargo

 

Senior Secured First Lien Term Loan LIBOR + 5.000% (5) (8)

 

6/21/2026

    2,886,637       2,864,934       2,835,544       0.5 %
       

Senior Secured First Lien Term Loan LIBOR + 5.000% (5) (8)

 

6/21/2026

    1,059,292       1,051,328       1,040,543       0.2 %
                  3,945,929       3,916,262       3,876,087          

Path Medical, LLC

 

Healthcare & Pharmaceuticals

 

Senior Secured First Lien Term Loan LIBOR + 13.000%, 1.000% Floor, PIK (4) (5) (6) (8)

 

10/11/2021

    11,111,601       8,860,931             %
       

Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK (4) (5) (8)

 

10/11/2021

    8,141,732       8,141,732       7,327,559       1.4 %
       

Warrants - 36,716 warrants (5) (11)

 

1/9/2027

          669,709             %
                  19,253,333       17,672,372       7,327,559          

PetroChoice Holdings, Inc.

 

Chemicals, Plastics & Rubber

 

Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor (4) (5)

 

8/21/2023

    9,000,000       9,000,000       8,111,700       1.5 %
                  9,000,000       9,000,000       8,111,700          

Polymer Solutions Group Holdings, LLC

 

Chemicals, Plastics & Rubber

 

Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor (5) (8)

 

6/30/2021

    1,055,988       1,054,153       1,050,391       0.2 %
                  1,055,988       1,054,153       1,050,391          

Proppants Holdings, LLC

 

Energy: Oil & Gas

 

Senior Secured First Lien Term Loan LIBOR + 5.000%, 19.000% PIK (5)

    87,494       87,494       87,494       %
       

Common Units - 216,882 units (11)

          874,363       433,763       0.1 %
        Common Units - 161,852 units (11)           8,832             %
                  87,494       970,689       521,257          

PT Network, LLC

 

Healthcare & Pharmaceuticals

 

Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor, 2.00% PIK (5) (14)

 

11/30/2023

    8,094,377       7,780,056       7,760,079       1.4 %
       

Membership Units - 1.441 units (5) (11)

                      %
                  8,094,377       7,780,056       7,760,079          

 

 

Company(1)(2)

 

Industry

 

Type of Investment

 

Maturity

 

Par Amount

   

Cost

   

Fair Value

   

% of Net Assets(3)

 

RateGain Technologies, Inc.

 

Hotel, Gaming & Leisure

 

Subordinated Notes (5) (11) (13)

 

7/31/2020

    404,335       404,335             %
       

Subordinated Notes (5) (11)

 

7/31/2021

    476,190       476,190             %
                  880,525       880,525                

Redwood Services Group, LLC

 

Services: Business

 

Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor (4) (5)

 

6/6/2023

    3,990,000       3,990,000       3,990,000       0.7 %
       

Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (5) (8)

 

6/6/2023

    22,550,832       22,550,832       22,023,143       4.1 %
       

Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor (5) (8)

 

6/6/2023

    732,200       716,527       746,844       0.1 %
       

Revolving Credit Facility LIBOR + 6.000%, 1.000% Floor (5) (8) (12)

 

6/6/2023

    287,500       287,500       214,762       %
                  27,560,532       27,544,859       26,974,749          

Resolute Investment Managers, Inc.

 

Banking, Finance, Insurance & Real Estate

 

Senior Secured Second Lien Term Loan LIBOR + 8.000%, 1.000% Floor (4) (5)

 

4/30/2025

    6,000,000       5,972,491       6,015,000       1.1 %
                  6,000,000       5,972,491       6,015,000          

Rhombus Cinema Holdings, LP

 

Media: Diversified & Production

 

Preferred Equity - 7,449 shares 10.000% PIK (5) (6) (11)

          4,584,207             %
       

Common Units - 3,163 units (5) (11)

          2,864,831             %
       

Common Units - 3,163 units (5) (11)

          297,962             %
                        7,747,000                

RTIC Subsidiary Holdings, LLC

 

Consumer Goods: Durable

 

Senior Secured First Lien Term Loan LIBOR + 7.750%, 1.250% Floor (4) (5)

 

9/1/2025

    9,937,500       9,937,500       10,013,025       1.8 %
        Senior Secured First Lien Term Loan LIBOR + 7.750%, 1.250% Floor (4) (5) (8)   9/1/2025     952,381       952,381       947,619       0.2 %
        Revolving Credit Facility LIBOR + 7.750%, 1.250% Floor (4) (5) (8) (12)   9/1/2025     793,651       793,651       785,714       0.1 %
       

Preferred Class A units - 142.50 units (11)

          142,500       142,500       %
       

Preferred Class B units - 142.50 units (11)

          142,500       142,500       %
       

Common units - 150 units (11)

          15,000       22,500       %
                  11,683,532       11,983,532       12,053,858          

SavATree, LLC

 

Environmental Industries

 

Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor (4) (5)

 

6/2/2022

    4,272,928       4,272,928       4,267,373       0.8 %
                  4,272,928       4,272,928       4,267,373          

SFP Holding, Inc.

 

Construction & Building

 

Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor (4) (5) (12)

 

9/1/2022

    23,595,073       23,576,731       23,595,073       4.3 %
       

Equity - 0.94% of outstanding equity (5) (11)

          788,116       709,304       0.1 %
                  23,595,073       24,364,847       24,304,377          

Simplified Logistics, LLC

 

Services: Business

 

Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor (4) (5)

 

2/28/2022

    17,279,750       17,279,750       17,089,673       3.2 %
       

Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor (4) (5)

 

2/28/2022

    968,780       968,780       958,124       0.2 %
       

Revolving Credit Facility LIBOR + 6.500%, 1.000% Floor (4) (5)

 

2/28/2022

    3,533,333       3,533,333       3,496,940       0.6 %
                  21,781,863       21,781,863       21,544,737          

SMART Financial Operations, LLC

 

Retail

 

Preferred Equity - 1,000,000 units (5) (11)

          1,000,000       490,000       0.1 %
                        1,000,000       490,000          

 

 

Company(1)(2)

 

Industry

 

Type of Investment

 

Maturity

 

Par Amount

   

Cost

   

Fair Value

   

% of Net Assets(3)

 

Smile Doctors, LLC

 

Healthcare & Pharmaceuticals

 

Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor (4) (5)

 

10/6/2022

    13,770,549       13,754,062       13,694,811       2.5 %
                  13,770,549       13,754,062       13,694,811          

Sound Point CLO XX, Ltd.

 

Multi-Sector Holdings

 

Subordinated Notes 8.553% effective yield (5) (7) (9) (10)

 

7/26/2031

    4,489,000       3,391,711       2,793,954       0.5 %
                  4,489,000       3,391,711       2,793,954          

Starfish Holdco, LLC

 

High Tech Industries

 

Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor (4) (5)

 

8/18/2025

    2,000,000       1,983,197       1,993,800       0.4 %
                  2,000,000       1,983,197       1,993,800          

Team Car Care, LLC

 

Automotive

 

Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor (4) (5)

 

2/23/2023

    13,488,757       13,488,757       13,402,429       2.5 %
                  13,488,757       13,488,757       13,402,429          

Team Services Group

 

Services: Consumer

 

Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor (5) (8)

 

12/20/2027

    5,000,000       4,853,387       4,975,000       0.9 %
       

Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor (5) (8)

 

12/18/2028

    5,000,000       4,852,959       4,975,000       0.9 %
                  10,000,000       9,706,346       9,950,000          

The Octave Music Group, Inc.

 

Media: Diversified & Production

 

Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor, 0.75% PIK (5) (8)

 

5/29/2025

    7,724,138       7,662,378       7,106,207       1.3 %
                  7,724,138       7,662,378       7,106,207          
Thermacell Repellents, Inc.   Consumer Goods: Durable   Revolving Credit Facility LIBOR + 6.250%, 1.000% Floor (5) (12)   12/4/2026     1,430,000       1,408,596       1,408,000       0.3 %
        Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor (5) (8)   12/4/2026     2,570,000       2,544,997       2,544,300       0.5 %
        Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor (5) (8)   12/4/2026     230,000       227,762       227,700       %
                  4,230,000       4,181,355       4,180,000          
Time Manufacturing Acquisition, LLC   Capital Equipment   Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor (5)   2/3/2023     2,496,538       2,496,263       2,496,289       0.5 %
                  2,496,538       2,496,263       2,496,289          

True Religion Apparel, Inc.

 

Retail

 

Senior Secured First Lien Term Loan 10.000% (6)

 

10/27/2022

    179,437       133,654       162,049       %
       

Common Stock - 2,448 shares (11)

                      %
       

Warrants - 1,122 warrants (11)

                      %
                  179,437       133,654       162,049          

Velocity Pooling Vehicle, LLC

 

Automotive

 

Senior Secured First Lien Term Loan LIBOR + 11.000%, 1.000% Floor (4) (5)

 

4/28/2023

    871,784       841,658       871,784       0.2 %
       

Common Units - 4,676 units (5) (11)

          259,938       18,704       %
       

Warrants - 5,591 warrants (5) (11)

 

3/30/2028

          310,802       22,364       %
                  871,784       1,412,398       912,852          

VOYA CLO 2015-2, LTD.

 

Multi-Sector Holdings

 

Subordinated Notes 0.516% effective yield (5) (7) (9) (10)

 

7/19/2028

    10,735,659       5,410,541       3,785,393       0.7 %
                  10,735,659       5,410,541       3,785,393          

VOYA CLO 2016-2, LTD.

 

Multi-Sector Holdings

 

Subordinated Notes 2.808% effective yield (5) (7) (9) (10)

 

7/19/2028

    11,088,290       6,992,766       5,007,472       0.9 %
                  11,088,290       6,992,766       5,007,472          

Walker Edison Furniture Company LLC

 

Consumer Goods: Durable

 

Senior Secured First Lien Term Loan LIBOR + 8.750%, 1.000% Floor (4) (5)

 

9/26/2024

    1,962,500       1,962,500       1,962,500       0.4 %
       

Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor (4) (5)

 

9/26/2024

    14,156,250       14,156,250       14,156,250       2.6 %
       

Common Units - 2,000 units (5) (11)

          2,000,000       11,400,000       2.1 %
                  16,118,750       18,118,750       27,518,750          

Watermill-QMC Midco, Inc.

 

Automotive

 

Equity - 1.62% partnership interest (5) (11)

          902,277             %
                        902,277                

Wawona Delaware Holdings, LLC

 

Beverage & Food

 

Senior Secured First Lien Term Loan LIBOR + 4.750% (4) (5)

 

9/11/2026

    45,050       42,860       44,811       %
                  45,050       42,860       44,811          

West Dermatology, LLC

 

Healthcare & Pharmaceuticals

 

Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor (4) (5) (12)

 

2/11/2025

    724,855       724,855       733,478       0.1 %
       

Revolving Credit Facility LIBOR + 6.000%, 1.000% Floor, 0.75% PIK (4) (5)

 

2/11/2025

    1,659,427       1,659,427       1,632,544       0.3 %
       

Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor, 0.750% PIK (4) (5) (12)

 

2/11/2025

    4,733,252       4,730,784       4,657,520       0.9 %
                  7,117,534       7,115,066       7,023,542          

Wok Holdings Inc.

 

Retail

 

Senior Secured First Lien Term Loan LIBOR + 6.250% (5) (8)

 

3/1/2026

    49,000