10-Q 1 tm2024619d1_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, 2020

 

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: 814-01154

 

 

 

AUDAX CREDIT BDC INC.

(Exact name of registrant as specified in its charter)

 

 

DELAWARE   47-3039124

(State or other jurisdiction of
incorporation or organization)

 

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

 

101 HUNTINGTON AVENUE    
BOSTON, MASSACHUSETTS   02199
(Address of principal executive office)   (Zip Code)

 

(617) 859-1500

(Registrant’s telephone number, including area code)

 

Not Applicable

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

 

 

Securities registered pursuant to Section 12(b) of the 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   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 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, 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 12 b-2 of the Exchange Act.

 

         
Large accelerated filer ¨   Accelerated filer ¨
         
Non-accelerated filer x   Smaller reporting company ¨
         
Emerging growth company x      

 

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

 

The registrant had 38,343,577 shares of common stock, par value $0.001 per share, outstanding as of August 14, 2020.

 

 

 

 

 

 

AUDAX CREDIT BDC INC.

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION:  
     
Item 1. Financial Statements  
     
  Statements of Assets and Liabilities as of June 30, 2020 (unaudited) and December 31, 2019   2
  Statements of Operations for the three and six months ended June 30, 2020 (unaudited) and 2019 (unaudited) 3
  Statements of Changes in Net Assets for the six months ended June 30, 2020 (unaudited) and 2019 (unaudited) 4
  Statements of Cash Flows for the six months ended June 30, 2020 (unaudited) and 2019 (unaudited) 5
  Schedules of Investments as of June 30, 2020 (unaudited) and December 31, 2019 6
  Notes to Financial Statements (unaudited) 15
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations  
     
  Overview 36
  Results of Operations 38
  Financial Condition, Liquidity and Capital Resources 40
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 47
     
Item 4. Controls and Procedures 48
     
PART II. OTHER INFORMATION:  
     
Item 1. Legal Proceedings 49
     
Item 1A. Risk Factors 49
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50
     
Item 3. Defaults Upon Senior Securities 50
     
Item 4. Mine Safety Disclosures 50
     
Item 5. Other Information 50
     
Item 6. Exhibits 50
   
SIGNATURES 51

 

 

 

 

Audax Credit BDC Inc.

Statements of Assets and Liabilities

June 30, 2020 and December 31, 2019

(Expressed in U.S. Dollars)

 

   June 30, 2020    
   (unaudited)   December 31, 2019 
Assets          
Investments, at fair value          
Non-Control/Non-Affiliate investments (Cost of $342,780,598 and $332,722,006, respectively)  $327,764,913   $330,874,911 
Cash and cash equivalents   15,722,499    5,506,217 
Interest receivable   974,912    942,329 
Receivable from investments sold   -    1,993,379 
Receivable from bank loan repayment   9,984    80,161 
Other assets   98,529    - 
           
Total assets  $344,570,837   $339,396,997 
           
Liabilities          
Accrued expenses and other liabilities  $322,172   $297,938 
Fee due to administrator(a)   66,250    66,250 
Fees due to investment advisor, net of waivers(a)   683,370    688,136 
Payable for investments purchased   -    6,945,000 
           
Total liabilities  $1,071,792   $7,997,324 
Commitments and contingencies(b)          
           
Net Assets          
Common stock, $0.001 par value per share, 100,000,000 shares authorized, 37,793,522 and 35,109,246 shares issued and outstanding, respectively  $37,793   $35,110 
Capital in excess of par value   359,092,751    334,095,408 
Total distributable earnings   (15,631,499)   (2,730,845)
Total Net Assets  $343,499,045   $331,399,673 
           
Net Asset Value per Share of Common Stock at End of Period  $9.09   $9.44 
           
Shares Outstanding   37,793,522    35,109,246 

 

(a) Refer to Note 4-Related Party Transactions for additional information.

(b) Refer to Note 8-Commitments and Contingencies for additional information.

 

The accompanying notes are an integral part of these financial statements.

 

2

 

 

Audax Credit BDC Inc.

Statements of Operations

(Expressed in U.S. Dollars)

(unaudited)

 

   Three Months
Ended
   Three Months
Ended
   Six Months
Ended
   Six Months
Ended
 
   June 30, 2020   June 30, 2019   June 30, 2020   June 30, 2019 
Investment Income                    
Interest income                    
Non-Control/Non-Affiliate  $4,961,112   $5,216,545   $10,163,820   $10,086,548 
Other   1,325    42,795    29,995    93,515 
Total interest income   4,962,437    5,259,340    10,193,815    10,180,063 
Other income                    
Non-Control/Non-Affiliate   124,633    15,340    139,373    33,150 
Total income   5,087,070    5,274,680    10,333,188    10,213,213 
                     
Expenses                    
Base management fee(a)  $942,530   $808,440   $1,823,382   $1,547,094 
Incentive fee(a)   623,599    647,108    1,284,958    1,259,236 
Administrative fee(a)   66,250    66,250    132,500    132,500 
Directors' fees   52,500    52,500    105,000    105,000 
Professional fees   139,116    233,450    237,058    388,131 
Other expenses   59,805    83,452    108,190    188,053 
Expenses before waivers from investment adviser and administrator   1,883,800    1,891,200    3,691,088    3,620,014 
Base management fee waivers(a)   (329,886)   (282,954)   (638,184)   (541,483)
Incentive fee waivers(a)   (552,873)   (521,159)   (1,116,651)   (1,010,450)
Total expenses, net of waivers   1,001,041    1,087,087    1,936,253    2,068,081 
Net Investment Income   4,086,029    4,187,593    8,396,935    8,145,132 
                     
Realized and Unrealized Gain (Loss) on Investments                    
Net realized gain (loss) on investments   384    73,812    (3,392)   101,731 
Net change in unrealized appreciation (depreciation) on investments   2,368,943    (318,214)   (13,168,590)   (661,736)
Net realized and unrealized loss on investments   2,369,327    (244,402)   (13,171,982)   (560,005)
                     
Net Increase (Decrease) in Net Assets Resulting from Operations  $6,455,356   $3,943,191   $(4,775,047)  $7,585,127 
                     
Basic and Diluted per Share of Common Stock:                     
Net investment income  $0.11   $0.13   $0.23   $0.26 
Net increase (decrease) in net assets resulting from operations  $0.17   $0.12   $(0.13)  $0.24 
                     
Weighted average shares of common stock outstanding basic diluted   37,769,447    31,880,752    37,155,262    31,019,614 

 

(a) Refer to Note 4-Related Party Transactions for additional information

 

The accompanying notes are an integral part of these financial statements.

 

3

 

 

 

Audax Credit BDC Inc.

Statements of Changes in Net Assets

(Expressed in U.S. Dollars)

(unaudited)

 

   Six Months Ended
June 30, 2020
   Six Months Ended
June 30, 2019
 
Operations        
Net investment income  $8,396,935   $8,145,132 
Net realized (loss) gain on investments   (3,392)   101,731 
Net change in unrealized depreciation on investments   (13,168,590)   (661,736)
Net (decrease) increase in net assets resulting from operations   (4,775,047)   7,585,127 
           
Distributions:          
Distributions to common stockholders   (8,125,607)   (8,246,864)
Return of capital to common stockholders   -    (60,025)
Total distributions   (8,125,607)   (8,306,889)
           
Capital Share Transactions:          
Issuance of common stock   25,000,000    35,000,000 
Reinvestment of common stock   26    30 
Net increase in net assets from capital share transactions   25,000,026    35,000,030 
           
Net Increase in Net Assets   12,099,372    34,278,268 
           
Net Assets, Beginning of Period   331,399,673    267,423,235 
           
Net Assets, End of Period  $343,499,045   $301,701,503 

 

The accompanying notes are an integral part of these financial statements.

 

4

 

 

Audax Credit BDC Inc.

Statements of Cash Flows

(Expressed in U.S. Dollars)

(unaudited)

 

   Six Months Ended   Six Months Ended 
   June 30, 2020   June 30, 2019 
Cash flows from operating activities:        
Net (decrease) increase in net assets resulting from operations  $(4,775,047)  $7,585,127 
Adjustments to reconcile net (decrease) increase in net assets from          
operations to net cash used in operating activities:          
Net realized loss (gain) on investments   3,392    (101,733)
Net change in unrealized depreciation on investments   13,168,590    661,736 
Accretion of original issue discount interest and payment-in-kind interest   (216,568)   (135,319)
Decrease in receivable from investments sold   1,993,379    - 
Increase in interest receivable   (32,583)   (269,162)
Decrease in receivable from bank loan repayment   70,177    679 
Increase in other assets   (98,529)   (90,000)
Increase (decrease) in accrued expenses and other liabilities   24,234    (182,307)
(Decrease) increase in fees due to investment advisor(a)   (4,766)   115,520 
Decrease in payable for investments purchased   (6,945,000)   (1,154,706)
Investment activity:          
Investments purchased   (36,506,991)   (75,349,578)
Proceeds from investments sold   5,743,556    1,951,362 
Repayment of bank loans   20,918,019    29,011,639 
Total investment activity   (9,845,416)   (44,386,577)
           
Net cash used in operating activities   (6,658,137)   (37,956,742)
           
Cash flows from financing activities:          
Issuance of shares of common stock   25,000,000    35,000,000 
Distributions paid to common stockholders   (8,125,581)   (8,306,859)
           
Net cash provided by financing activities   16,874,419    26,693,141 
           
Net increase (decrease) in cash and cash equivalents   10,216,282    (11,263,601)
           
Cash and cash equivalents:          
Cash and cash equivalents, beginning of period   5,506,217    17,715,145 
           
Cash and cash equivalents, end of period  $15,722,499   $6,451,544 
           
           
Supplemental non-cash information          
Issuance of common shares in connection with dividend reinvestment plan  $26   $30 
Payment-in-kind ("PIK") interest income  $35,921   $32,822 

 

(a)        Refer to Note 4-Related Party Transactions for additional information

 

The accompanying notes are an integral part of these financial statements.

 

5

 

 

Audax Credit BDC Inc. 

Schedule of Investments

As of June 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

 

             
Portfolio Investments (a) (b) (c) (d) (e) (f)  Par   Cost   Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (95.2%)(g)(h):               
                
Healthcare & Pharmaceuticals               
Radiology Partners, Senior Secured Term B Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/25(i)  $4,215,792   $4,344,174   $4,068,238 
Advarra, Senior Secured Initial Term Loan (First Lien), 4.55% (Libor + 4.25%), maturity 7/9/26   3,919,680    3,882,232    3,826,429 
Tecomet, Senior Secured 2017 Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/1/24   3,939,086    3,923,830    3,816,501 
Young, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/7/24   3,814,497    3,805,012    3,677,174 
Specialty Care, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 9/1/23   3,325,899    3,329,021    3,238,659 
Veritext, Senior Secured Initial Term Loan (First Lien), 3.80% (Libor + 3.50%), maturity 8/1/25   3,169,448    3,155,109    3,070,815 
Zest Dental, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 3/14/25   3,247,592    3,266,486    2,870,871 
Confluent Health, Senior Secured Initial Term Loan, 5.30% (Libor + 5.00%), maturity 6/24/26   2,970,000    2,944,579    2,870,327 
Physicians Endoscopy, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 8/18/23   2,892,017    2,873,776    2,780,848 
Waystar, Senior Secured Term Loan B, 4.30% (Libor + 4.00%), maturity 10/22/26(i)   2,493,750    2,483,602    2,468,813 
PharMedQuest, Senior Secured Initial Term Loan, 6.25% (Libor + 5.25%), maturity 10/31/24   2,487,500    2,456,918    2,422,253 
MedRisk, Senior Secured Initial Term Loan (First Lien), 3.05% (Libor + 2.75%), maturity 12/27/24   2,437,500    2,442,258    2,379,512 
Eating Recovery Center, Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 9/23/24   2,433,767    2,415,621    2,363,991 
OB Hospitalist Group, Senior Secured Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 8/1/24   2,316,088    2,306,383    2,260,988 
Premise Health, Senior Secured Initial Term Loan (First Lien), 3.80% (Libor + 3.50%), maturity 7/10/25   2,317,990    2,324,968    2,251,533 
MedRisk, Senior Secured Initial Loan (Second Lien), 7.05% (Libor + 6.75%), maturity 12/29/25   2,100,000    2,076,795    2,050,041 
Zelis RedCard, Senior Secured Initial Term Loan, 5.05% (Libor + 4.75%), maturity 9/30/26(i)   1,990,000    1,974,819    1,964,997 
Press Ganey, Senior Secured Initial Term Loan (First Lien), 3.80% (Libor + 3.50%), maturity 7/24/26(i)   1,985,000    1,978,295    1,934,081 
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 12/22/25   1,970,000    1,955,277    1,889,466 
CareCentrix, Senior Secured Initial Term Loan, 4.80% (Libor + 4.50%), maturity 4/3/25(i)   1,887,500    1,880,587    1,687,899 
Alpaca, Senior Secured Term Loan, 5.50% (Libor + 4.50%), maturity 4/19/24   1,665,714    1,643,582    1,609,813 
Upstream Rehabilitation, Senior Secured Term Loan, 4.80% (Libor + 4.50%), maturity 11/20/26   1,496,250    1,494,062    1,444,210 
CPS, Unitranche, 6.50% (Libor + 5.50%), maturity 2/28/25   1,485,054    1,466,877    1,431,592 
Stepping Stones, Unitranche, 6.75% (Libor + 5.75%), maturity 12/12/24   1,476,599    1,470,002    1,430,647 
Ensemble, Senior Secured Closing Date Term Loan, 4.05% (Libor + 3.75%), maturity 8/3/26(i)   992,500    988,042    992,500 
Athena, Senior Secured Term B Loan (First Lien), 4.80% (Libor + 4.50%), maturity 2/11/26(i)   992,469    983,375    969,453 
Veritext, Senior Secured Initial Term Loan (Second Lien), 7.30% (Libor + 7.00%), maturity 7/31/26   1,000,000    995,868    968,880 
Packaging Coordinators, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 6/30/23   979,592    984,493    951,507 
Dermatologists of Central States, Senior Secured Term Loan, 7.50% (Libor + 6.50%), maturity 4/20/22   972,344    972,344    938,526 
Alcami, Senior Secured Initial Term Loan (First Lien), 4.55% (Libor + 4.25%), maturity 7/14/25   982,500    978,726    935,144 
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 6.50% (Libor + 5.50%), maturity 5/9/25   982,500    971,432    927,952 
ATI Physical Therapy, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/10/23(i)   917,245    921,451    857,624 
Specialty Care, Senior Secured Initial Term Loan (Second Lien), 9.25% (Libor + 8.25%), maturity 9/1/24   850,000    843,914    829,779 
RMP & MedA/Rx, Senior Secured Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 2/6/25   436,126    435,287    422,554 
Injured Workers Pharmacy, Senior Secured Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 7/22/20(i)   375,681    379,005    375,681 
Alpaca, Senior Secured Revolver, 5.50% (Libor + 4.50%), maturity 4/19/24   258,852    254,969    250,165 
Advarra, Senior Secured Initial Revolving Loan (First Lien), 4.55% (Libor + 4.25%), maturity 7/9/26   -    (7,619)   - 
                
High Tech Industries               
Qlik, Senior Secured 2019 Incremental Term Loan, 5.25% (Libor + 4.25%), maturity 4/26/24(i)   3,960,000    3,937,219    3,945,150 
Barracuda, Senior Secured 2019 Incremental Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 2/12/25(i)   3,433,703    3,445,545    3,370,046 
Masergy, Senior Secured Initial Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/16/24   3,428,571    3,420,963    3,330,274 
Syncsort, Senior Secured 2018 Refinancing Term Loan (First Lien), 6.55% (Libor + 6.25%), maturity 8/16/24   3,404,363    3,382,210    3,298,419 
Jaggaer, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 8/14/26(i)   3,138,534    3,133,758    3,061,322 
Infogroup, Senior Secured Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 4/3/23   2,904,925    2,883,805    2,821,641 
McAfee, Senior Secured Term B USD Loan, 4.05% (Libor + 3.75%), maturity 9/30/24(i)   2,849,928    2,860,058    2,801,449 
Idera, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 6/28/24   2,632,524    2,630,694    2,569,896 
EverCommerce, Senior Secured Initial Term Loan, 5.80% (Libor + 5.50%), maturity 8/23/25   2,596,070    2,549,994    2,527,975 
ECi Software Solutions, Senior Secured Initial Term Loan, 5.25% (Libor + 4.25%), maturity 9/27/24(i)   2,450,978    2,441,163    2,418,363 
QuickBase, Senior Secured Term Loan (First Lien), 4.30% (Libor + 4.00%), maturity 4/2/26   1,980,000    1,971,503    1,918,382 
Sophos, Senior Secured Dollar Tranche Term Loan (First Lien), 3.80% (Libor + 3.50%), maturity 3/5/27(i)(q)   2,000,000    1,878,750    1,933,619 
Flexera Software, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 2/26/25(i)   1,955,000    1,960,759    1,915,979 
Corsair, Senior Secured Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 8/28/24   1,966,242    1,952,904    1,914,668 
Intermedia , Senior Secured New Term Loan (First Lien), 7.00% (Libor + 6.00%), maturity 7/21/25   1,970,000    1,957,371    1,913,520 
GlobalLogic, Senior Secured Initial Term Loan, 3.05% (Libor + 2.75%), maturity 8/1/25(i)   1,724,063    1,716,163    1,663,181 
Bomgar, Senior Secured Initial Term Loan (First Lien), 4.30% (Libor + 4.00%), maturity 4/18/25   1,715,000    1,724,186    1,657,445 
Liaison, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 12/20/26   1,492,500    1,488,750    1,453,352 
OEConnection, Senior Secured Initial Term Loan, 5.00% (Libor + 4.00%), maturity 9/25/26   1,488,750    1,482,131    1,446,068 
Navex Global, Senior Secured Initial Term Loan (First Lien), 3.55% (Libor + 3.25%), maturity 9/5/25(i)   1,473,750    1,460,732    1,434,420 
Ultimate Software , Senior Secured Initial Term Loan (First Lien), 4.05% (Libor + 3.75%), maturity 5/4/26(i)   1,075,208    1,077,046    1,071,176 
Unison, Senior Secured 2020 Term Loan, 8.00% (Libor + 7.00%), maturity 6/25/26(i)(j)   1,000,000    975,000    975,000 
Insurity, Senior Secured Closing Date Term Loan (First Lien), 4.30% (Libor + 4.00%), maturity 7/31/26   995,000    990,542    968,901 

 

The accompanying notes are an integral part of these financial statements.

 

6

 

 

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of June 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

 

Portfolio Investments (a) (b) (c) (d) (e) (f)  Par   Cost   Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h) (Continued):               
                
High Tech Industries (continued)               
LANDesk, Senior Secured Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 1/20/24(i)  $973,876   $965,948   $954,399 
Community Brands, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 12/2/22   830,009    826,616    801,141 
Sparta, Senior Secured New Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 8/21/24   791,973    792,375    748,002 
Global Knowledge, Senior Secured Initial Term Loan (Second Lien), 13.25% (Libor + 12.25%), maturity 1/20/22(m)   1,000,000    996,457    650,000 
Idera, Senior Secured Loan (Second Lien), 10.00% (Libor + 9.00%), maturity 6/28/27   500,000    505,000    488,105 
HelpSystems, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 11/19/26   498,750    497,500    485,668 
DigiCert, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 4.00%), maturity 10/16/26(i)   498,750    470,000    486,828 
McAfee, Senior Secured Initial Loan (Second Lien), 9.50% (Libor + 8.50%), maturity 9/29/25(i)   500,000    492,500    502,956 
Masergy, Senior Secured 2017 Replacement Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 12/15/23   482,408    481,070    468,578 
Endurance Int'l Group, Senior Secured Refinancing Loan (2018), 4.75% (Libor + 3.75%), maturity 2/9/23(i)   399,855    399,248    389,963 
                
Services: Business               
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 9/23/25   3,970,000    3,936,667    3,865,867 
RevSpring, Senior Secured Initial Term Loan (First Lien), 4.55% (Libor + 4.25%), maturity 10/11/25   3,940,000    3,936,001    3,817,387 
Addison, Senior Secured Initial Term Loan, 5.05% (Libor + 4.75%), maturity 4/15/26   2,970,000    2,920,689    2,884,850 
Fleetwash, Senior Secured Incremental Term Loan, 5.75% (Libor + 4.75%), maturity 10/1/24   2,947,725    2,925,510    2,855,992 
Service Logic, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 12/31/24   2,922,063    2,912,851    2,823,998 
Aimbridge, Senior Secured Initial Term Loan (2019) (First Lien), 4.05% (Libor + 3.75%), maturity 2/2/26(i)   2,967,575    2,958,760    2,599,642 
Duff & Phelps, Senior Secured Initial Dollar Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 4/9/27(i)   2,500,000    2,475,000    2,487,500 
Allied Universal, Senior Secured Initial Term Loan, 4.55% (Libor + 4.25%), maturity 7/10/26(i)   2,478,577    2,460,808    2,426,175 
HireRight, Senior Secured Initial Term Loan (Second Lien), 7.55% (Libor + 7.25%), maturity 7/10/26   2,500,000    2,481,051    2,422,200 
Newport Group, Senior Secured Initial Term Loan (First Lien), 3.80% (Libor + 3.50%), maturity 9/12/25   2,458,719    2,446,824    2,394,226 
Vistage, Senior Secured Term B Loan (First Lien), 5.00% (Libor + 4.00%), maturity 2/10/25   2,452,455    2,447,096    2,394,112 
Sterling Backcheck, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 6/19/24   2,381,940    2,381,940    2,313,650 
Cast & Crew, Senior Secured Initial Term Loan (First Lien), 4.05% (Libor + 3.75%), maturity 2/9/26(i)   2,468,750    2,471,910    2,283,271 
Eliassen Group, Senior Secured Initial Term B Loan, 4.80% (Libor + 4.50%), maturity 11/5/24   1,489,371    1,483,537    1,446,671 
OSG Billing Services, Senior Secured Term B Loan (First Lien), 5.50% (Libor + 4.50%), maturity 3/27/24   1,466,891    1,462,724    1,415,873 
DBi Services, Senior Secured Term B Loan (Second Lien), 8.00% (Libor + 9.00%), maturity 2/2/26   1,268,604    1,268,604    1,268,604 
WCG, Senior Secured Term Loan, 5.00% (Libor + 4.00%), maturity 1/8/27(i)   1,000,000    990,000    979,767 
Diversified, Senior Secured Initial Term Loan, 5.75% (Libor + 4.75%), maturity 12/23/23   987,538    981,799    959,225 
First Advantage, Senior Secured Term Facility (First Lien), 4.50% (Libor + 3.50%), maturity 1/31/27(i)   1,000,000    995,000    938,631 
Franklin Energy, Senior Secured Term B Loan (First Lien), 4.30% (Libor + 4.00%), maturity 8/14/26   992,500    990,121    908,138 
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 4.30% (Libor + 4.00%), maturity 6/3/26   496,241    492,624    482,013 
                
Chemicals, Plastics & Rubber               
Plaskolite, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 12/15/25(i)   3,940,000    3,881,267    3,861,200 
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/30/24   3,410,112    3,398,302    3,237,424 
DuBois Chemicals, Senior Secured Term Loan (Second Lien), 8.80% (Libor + 8.50%), maturity 9/30/27   3,000,000    2,966,037    2,906,640 
Universal Fiber Systems, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 10/4/21   2,796,460    2,792,694    2,620,731 
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 1/31/25(i)   2,668,575    2,677,060    2,361,952 
Unifrax, Senior Secured USD Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 12/12/25(i)   2,463,734    2,443,131    2,099,671 
Boyd Corp, Senior Secured Initial Loan (Second Lien), 7.05% (Libor + 6.75%), maturity 9/6/26   2,000,000    2,002,087    1,930,440 
Q Holding, Senior Secured Term B Loan (2019), 6.00% (Libor + 5.00%), maturity 12/29/23   1,985,000    1,976,564    1,913,540 
DuBois Chemicals, Senior Secured Term Loan B (First Lien), 4.80% (Libor + 4.50%), maturity 9/30/26   1,804,471    1,763,762    1,743,913 
Zep, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 8/12/24   1,946,219    1,944,439    1,751,597 
Spartech, Senior Secured Term Loan, 5.50% (Libor + 4.50%), maturity 10/17/25   995,000    980,936    968,901 
Vantage Specialty Chemicals, Senior Secured Closing Date Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 10/28/24(i)   982,368    967,013    853,162 
Prince Minerals, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 3/31/25(i)   977,500    973,923    846,225 
                
Services: Consumer               
CIBT Holdings, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 6/3/24   5,396,449    5,380,824    4,284,781 
A Place For Mom, Senior Secured Term Loan, 4.75% (Libor + 3.75%), maturity 8/10/24   2,652,506    2,651,953    2,531,127 
Weld North, Senior Secured Initial Term Loan, 4.55% (Libor + 4.25%), maturity 2/15/25(i)   2,451,137    2,430,902    2,426,625 
Cambium Learning, Senior Secured Initial Term Loan (First Lien), 4.80% (Libor + 4.50%), maturity 12/18/25   2,462,500    2,360,487    2,391,900 
Smart Start, Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 2/21/22   2,405,195    2,405,195    2,342,107 
Valet Living, Senior Secured Initial Term Loan, 4.05% (Libor + 3.75%), maturity 9/28/25   1,973,674    1,969,813    1,921,905 
Mister Car Wash, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 5/14/26(i)   2,079,500    2,075,091    1,890,728 
LegalShield, Senior Secured Initial Term Loan (First Lien), 3.55% (Libor + 3.25%), maturity 5/1/25(i)   1,927,000    1,915,235    1,864,373 
Ned Stevens, Senior Secured Term A Loan, 6.75% (Libor + 5.75%), maturity 9/30/25   1,535,229    1,510,962    1,487,452 
Spring Education, Senior Secured Initial Term Loan (First Lien), 4.55% (Libor + 4.25%), maturity 7/30/25   982,500    980,613    954,332 
Valet Living, Senior Secured Initial Term Loan, 6.75% (Libor + 5.75%), maturity 9/28/25(i)   500,000    495,000    495,000 
LegalShield, Senior Secured Initial Term Loan (Second Lien), 7.80% (Libor + 7.50%), maturity 5/1/26   500,000    500,000    485,665 
StubHub, Senior Secured USD Term B Loan, 3.80% (Libor + 3.50%), maturity 2/12/27(i)   497,500    495,000    437,230 
Ned Stevens, Senior Secured Revolver, 5.75% (Libor + 4.75%), maturity 9/30/25   -    (2,614)   - 

 

The accompanying notes are an integral part of these financial statements.

 

7

 

 

 

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of June 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

 

Portfolio Investments (a) (b) (c) (d) (e) (f)  Par   Cost   Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h) (Continued):               
                
Aerospace & Defense               
CPI International, Senior Secured TL, 5.75% (Libor + 4.75%), maturity 7/26/24  $5,301,835   $5,248,817   $5,149,831 
StandardAero, Senior Secured 2020 Term B-1 Loan, 3.80% (Libor + 3.50%), maturity 4/6/26(i)   3,550,096    3,539,519    3,102,756 
Whitcraft, Unitranche, 7.00% (Libor + 6.00%), maturity 4/3/23   1,992,479    1,982,479    1,930,473 
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 4/30/26   2,000,000    2,008,964    1,928,000 
StandardAero, Senior Secured 2020 Term B-2 Loan, 3.80% (Libor + 3.50%), maturity 4/6/26(i)   1,908,654    1,902,967    1,668,149 
Tronair, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 9/8/23   1,448,611    1,443,186    1,378,788 
Amentum, Senior Secured Initial Term Loan (First Lien), 4.30% (Libor + 4.00%), maturity 1/29/27(i)   1,000,000    967,500    988,009 
API Technologies, Senior Secured Initial Term Loan (First Lien), 4.55% (Libor + 4.25%), maturity 5/9/26   994,975    964,975    956,728 
Eton, Senior Secured Initial Term Loan (First Lien), 4.80% (Libor + 4.50%), maturity 5/1/25(i)   497,462    497,462    488,497 
Eton, Senior Secured Initial Term Loan (Second Lien), 8.30% (Libor + 8.00%), maturity 5/1/26   500,000    495,000    484,440 
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 4/30/25   495,127    492,774    477,907 
Novaria Group, Senior Secured Initial Term Loan, 6.50% (Libor + 5.50%), maturity 1/27/27   481,818    476,818    466,824 
                
Banking, Finance, Insurance & Real Estate               
American Beacon Advisors, Senior Secured Tranche C Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 4/30/23   2,500,000    2,506,250    2,440,525 
Kestra Financial, Senior Secured Initial Term Loan, 4.55% (Libor + 4.25%), maturity 6/3/26   1,985,000    1,967,691    1,932,933 
Integro Insurance Brokers, Senior Secured Initial Term Loan (First Lien), 6.75% (Libor + 5.75%), maturity 10/31/22   1,973,502    1,945,385    1,916,922 
EPIC Insurance, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 9/6/24   1,462,500    1,460,291    1,411,634 
Advisor Group, Senior Secured Initial Term B Loan, 5.30% (Libor + 5.00%), maturity 7/31/26(i)   1,492,500    1,478,544    1,404,421 
AmeriLife, Senior Secured Initial Term Loan (First Lien), 4.30% (Libor + 4.00%), maturity 3/18/27   1,329,545    1,326,222    1,284,926 
Aperio, Senior Secured Initial Commitment, 5.30% (Libor + 5.00%), maturity 10/25/24   933,889    930,021    911,672 
Sedgwick Claims, Senior Secured Initial Term Loan, 3.55% (Libor + 3.25%), maturity 12/31/25(i)   497,475    496,850    474,911 
                
Capital Equipment               
MW Industries, Senior Secured 2018 New Term Loan (First Lien), 4.05% (Libor + 3.75%), maturity 9/30/24(i)   2,431,250    2,431,250    2,088,313 
BAS, Senior Secured Repricing Term Loan, 4.75% (Libor + 3.75%), maturity 5/21/24   1,959,512    1,961,434    1,908,114 
Excelitas, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/1/25(i)   1,500,000    1,477,500    1,437,896 
Edward Don, Senior Secured Initial Term Loan, 5.25% (Libor + 4.25%), maturity 7/2/25   1,471,281    1,465,982    1,400,366 
Cole-Parmer, Senior Secured Closing Date Term Loan (First Lien), 4.55% (Libor + 4.25%), maturity 11/4/26   997,500    993,274    966,458 
Duravant, Senior Secured Incremental Amendment No. 2 Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/19/24   497,475    497,475    483,212 
Excelitas, Senior Secured Initial USD Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/2/24(i)   491,184    494,618    482,525 
Restaurant Technologies, Senior Secured Initial Loan (Second Lien), 6.80% (Libor + 6.50%), maturity 10/1/26   500,000    503,750    482,000 
TriMark, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 8/28/24(i)   488,695    490,010    373,663 
                
Construction & Building               
Tangent, Senior Secured Closing Date Term Loan (First Lien), 5.05% (Libor + 4.75%), maturity 11/30/24   1,820,383    1,807,423    1,759,291 
PlayPower, Senior Secured Initial Term Loan, 5.80% (Libor + 5.50%), maturity 5/8/26   1,896,764    1,896,764    1,729,849 
PlayCore, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 9/29/25   1,500,000    1,467,188    1,447,830 
DiversiTech Corporation, Senior Secured Tranche B-1 Term Loan (First Lien), 4.00% (Libor + 3.00%), maturity 6/3/24   1,467,272    1,456,630    1,418,030 
PlayCore, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 9/30/24   971,915    970,219    938,112 
CHI Overhead Doors, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 7/29/22(i)   625,170    619,973    613,114 
Hoffman Southwest, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 8/14/23   527,876    524,689    510,161 
DiversiTech Corporation, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 6/2/25   500,000    488,750    484,440 
Acuren, Senior Secured Initial Term Loan, 4.55% (Libor + 4.25%), maturity 1/23/27   498,750    496,250    483,229 
                
Containers, Packaging & Glass               
ProAmpac, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 11/20/23(i)   2,985,068    2,999,580    2,962,680 
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 4.05% (Libor + 3.75%), maturity 7/18/26   2,422,500    2,413,456    2,364,869 
Pregis Corporation, Senior Secured Initial Term Loan (First Lien), 4.30% (Libor + 4.00%), maturity 7/31/26(i)   995,000    992,811    973,083 
Tank Holding, Senior Secured 2020 Refinancing Term Loan (First Lien), 3.80% (Libor + 3.50%), maturity 3/26/26(i)   992,500    988,691    941,131 
Berlin Packaging, Senior Secured Initial Term Loan (First Lien), 3.00% (Libor + 3.00%), maturity 11/7/25(i)   497,462    475,019    478,652 
Alpha Packaging, Senior Secured Tranche B-1 Term Loan, 7.00% (Libor + 6.00%), maturity 11/12/21   486,337    485,895    468,829 
TricorBraun, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 11/30/23(i)   484,858    484,858    466,337 
                
Consumer Goods: Non-durable               
Manna Pro, Senior Secured Term Loan, 7.00% (Libor + 6.00%), maturity 12/8/23   3,421,250    3,385,428    3,314,781 
Augusta Sportswear Group, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 10/26/23   2,212,521    2,200,118    1,991,269 
Badger Sportswear, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 9/11/23   1,906,766    1,896,793    1,819,512 
Varsity Brands, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/16/24(i)   982,385    988,271    845,300 
                
Automotive               
Mavis, Senior Secured Closing Date Term Loan (First Lien), 3.55% (Libor + 3.25%), maturity 3/20/25(i)   3,917,710    3,904,276    3,672,853 
Truck Hero, Senior Secured Initial Term Loan (Second Lien), 9.25% (Libor + 8.25%), maturity 4/21/25   1,800,000    1,798,621    1,757,178 
Safe Fleet, Senior Secured Tranche B-1 Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 2/3/25   975,849    953,692    945,481 
Safe Fleet, Senior Secured Initial Term Loan (Second Lien), 7.05% (Libor + 6.75%), maturity 2/2/26   500,000    488,750    483,220 
IXS, Senior Secured Initial Term Loan, 6.00% (Libor + 5.00%), maturity 3/5/27(i)   498,718    493,718    469,713 
                
Transportation: Cargo               
Odyssey Logistics & Technology , Senior Secured New Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 10/12/24   3,614,314    3,610,311    3,488,608 
Transplace, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 10/7/24   2,454,271    2,448,373    2,389,896 
Capstone Logistics, Senior Secured Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 10/7/21(i)   1,161,707    1,161,868    1,150,090 

 

The accompanying notes are an integral part of these financial statements.

 

8

 

 

 

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of June 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

 

Portfolio Investments (a) (b) (c) (d) (e) (f)  Par   Cost   Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h) (Continued):               
Wholesale               
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 3.00%), maturity 3/20/25  $3,915,746   $3,916,177   $3,779,556 
PetroChoice, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 8/19/22   1,905,184    1,887,552    1,729,907 
ABB Optical, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 6/15/23   1,447,387    1,445,742    1,374,091 
                
Forest Products & Paper               
Hoffmaster Group, Senior Secured Tranche B-1 Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/21/23(i)   2,912,188    2,901,708    2,424,397 
Loparex, Senior Secured Initial Term Loan (First Lien), 4.80% (Libor + 4.50%), maturity 7/31/26   1,488,750    1,475,376    1,446,068 
Hoffmaster Group, Senior Secured Initial Term Loan (Second Lien), 10.50% (Libor + 9.50%), maturity 11/21/24   1,250,000    1,250,000    1,201,950 
                
Media: Advertising, Printing & Publishing               
Ansira, Unitranche, 7.50% (Libor + 6.50%), maturity 12/20/24   1,940,398    1,929,827    1,649,339 
Northstar, Senior Secured Term Loan, 7.25% (Libor + 6.25%), maturity 6/7/22   1,424,055    1,424,055    1,379,739 
Vestcom International, Senior Secured L/C Collaterilized, 5.00% (Libor + 4.00%), maturity 12/19/23   783,750    786,245    757,447 
Imagine! Print Solutions, Senior Secured Term B-1 Loan (First Lien), 5.75% (Libor + 4.75%), maturity 6/21/22   1,451,250    1,445,269    435,375 
                
Beverage, Food & Tobacco               
Sovos Brands, Senior Secured Initial Term Loan (2018), 5.75% (Libor + 4.75%), maturity 11/20/25   1,970,000    1,953,963    1,908,694 
Kettle Cuisine, Senior Secured Initial Term Loan (First Lien) , 4.75% (Libor + 3.75%), maturity 8/25/25   1,965,000    1,958,117    1,903,849 
                
Consumer Goods: Durable               
Strategic Partners, Senior Secured Initial Term Loan, 4.75% (Libor + 3.75%), maturity 6/30/23(i)   2,297,675    2,294,918    2,194,280 
                
Retail               
Grocery Outlet, Senior Secured 2020 Term Loan (First Lien), 3.05% (Libor + 2.75%), maturity 10/22/25(i)   1,269,483    1,267,299    1,250,441 
                
Hotel, Gaming & Leisure               
Auto Europe, Senior Secured Initial Dollar Term Loan, 6.00% (Libor + 5.00%), maturity 10/21/23   1,119,231    1,111,922    1,007,308 
                
Metals & Mining               
Dynatect, Senior Secured Term B Loan, 5.50% (Libor + 4.50%), maturity 9/30/22   992,738    989,866    954,577 
                
Health Care Equipment & Services               
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 4.55% (Libor + 4.25%), maturity 8/31/26(i)   583,320    577,854    534,149 
                
Total Bank Loans       $341,660,017   $326,911,360 

 

Portfolio Investments (a) (b) (c) (d) (e) (f)  Par   Cost   Value 
EQUITY AND PREFERRED SHARES:  NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.2%)(g)(h):              
                
Services: Business               
DBi Services, Class A-1 Preferred Units (800.53 units)(k)       $800,535   $576,385 
DBi Services, Class B Common Shares (169,362.31 shares)(l)(m)        -    - 
               
Services: Consumer               
Ned Stevens, Class B Common Units (261,438 Common B units, Fair value of $237,077)(f)(j)(m)(n)(o)        261,438    237,077 
               
Healthcare & Pharmaceuticals               
Alpaca, Class A Units (33,300.04 Class A Units, Fair value of $40,091)(f)(j)(m)(o)(p)        58,608    40,091 
                
Total Equity and Preferred Shares       $1,120,581   $853,553 
               
Total Portfolio Investments(r)       $342,780,598   $327,764,913 

 

(a)All companies are located in the United States of America, unless otherwise noted.
(b)Interest rate percentages represent actual interest rates which are indexed from then 30-day London Interbank Offered Rate ("LIBOR") unless otherwise noted. LIBOR rates are subject to interest rate floors which can vary based on the contractual agreement with the borrower.  Due dates represent the contractual maturity date.
(c)All loans are income-producing, unless otherwise noted.
(d)All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act") unless otherwise noted.
(e)All investments are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.
(f)Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.

(g)Percentages are calculated using fair value of investments over net assets.

(h)As defined in 1940 Act, the Company is not deemed to be an “Affiliated Person” of or “Control” this portfolio company because it neither owns 5% or  more of the portfolio company’s outstanding voting securities nor has the power to exercise control over the management or policies of such portfolio company (including through a management agreement).
(i)Investment was valued using Level 2 inputs within the ASC 820 fair value hierarchy.  Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
(j)Three of our affiliated funds, Audax Direct Lending Solutions Fund - A, L.P., Audax Direct Lending Solutions Fund - C, L.P., and Audax Direct Lending Solutions Fund - D, L.P., 'co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
(k)Represents an investment owned by APD Dbi Preferred, Inc., a holding company for the investment in DBi.

 

The accompanying notes are an integral part of these financial statements.

 

9

 

 

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of June 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

 

(l)Represents an investment owned by APD Dbi Common, Inc., a holding company for the investment in DBi.
(m)Investment is non-income producing.
(n)Represents an investment in APD NS Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(o)Other net assets of $0 at the aggregator levels are included in the fair value of the investments when using the net asset value as a practical expedient.
(p)Represents an investment in APD ALP Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(q)The borrower for Sophos, Surf Holdings S.a.r.l., is located in United Kingdom.
(r)At June 30, 2020, the cost of investments for income tax purposes was $342,780,598 the gross unrealized depreciation for federal tax purposes was $15,188,515, the gross unrealized appreciation for federal income tax purposes was $172,830, and the net unrealized depreciation was $15,015,685.

 

The accompanying notes are an integral part of these financial statements.

 

10

 

Audax Credit BDC Inc.

Schedule of Investments

As of December 31, 2019

(Expressed in U.S. Dollars)

 

Portfolio Investments (a) (b) (c) (d) (e) (f)  Par   Cost   Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (99.6%)(g)(h):               
                
Healthcare & Pharmaceuticals               
Radiology Partners, Senior Secured Term B Loan (First Lien), 6.66% (Libor + 4.75%), maturity 7/9/25(i)  $5,187,469   $5,149,488   $5,211,316 
Pathway, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 12/20/24   4,956,161    4,911,269    4,943,769 
Tecomet, Senior Secured 2017 Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 5/1/24   3,959,391    3,942,690    3,949,491 
Advarra, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/9/26(j)   3,939,427    3,899,562    3,909,879 
Young, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 11/7/24   3,834,156    3,823,748    3,805,398 
Specialty Care, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 9/1/23   3,342,954    3,346,536    3,334,596 
Zest Dental, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 3/14/25(i)   3,333,213    3,356,177    3,199,884 
Veritext, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 8/1/25   3,187,891    3,173,500    3,171,951 
Confluent Health, Senior Secured Initial Term Loan, 6.91% (Libor + 5.00%), maturity 6/24/26   2,985,000    2,957,225    2,962,613 
Physicians Endoscopy, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 8/18/23   2,906,775    2,886,868    2,874,073 
PharMedQuest, Senior Secured Initial Term Loan, 7.41% (Libor + 5.50%), maturity 10/31/24   2,500,000    2,463,488    2,481,250 
Waystar, Senior Secured Term Loan B, 5.91% (Libor + 4.00%), maturity 10/22/26   2,500,000    2,487,836    2,481,250 
MedRisk, Senior Secured Initial Term Loan (First Lien), 4.66% (Libor + 2.75%), maturity 12/27/24   2,450,000    2,455,219    2,450,000 
Eating Recovery Center, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 9/23/24   2,446,014    2,426,873    2,421,554 
OB Hospitalist Group, Senior Secured Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/1/24   2,316,088    2,305,375    2,316,088 
MedRisk, Senior Secured Initial Loan (Second Lien), 8.66% (Libor + 6.75%), maturity 12/29/25   2,100,000    2,074,832    2,100,000 
Zelis RedCard, Senior Secured Initial Term Loan, 6.66% (Libor + 4.75%), maturity 9/30/26(i)   2,000,000    1,980,688    2,014,889 
Press Ganey, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 7/24/26(i)   1,995,000    1,987,841    2,011,774 
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 12/22/25   1,980,000    1,962,728    1,957,725 
CareCentrix, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 4/3/25   1,912,500    1,904,900    1,912,500 
Premise Health, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 7/10/25   1,829,786    1,838,127    1,825,212 
Alpaca, Senior Secured Term Loan, 6.16% (Libor + 4.25%), maturity 4/19/24(j)   1,674,127    1,650,502    1,669,942 
CPS, Unitranche, 7.16% (Libor + 5.25%), maturity 2/28/25   1,492,500    1,472,625    1,488,769 
Stepping Stones, Unitranche, 7.41% (Libor + 5.50%), maturity 12/12/24   1,484,409    1,477,320    1,467,709 
Ensemble, Senior Secured Closing Date Term Loan, 5.66% (Libor + 3.75%), maturity 8/3/26(i)   997,500    992,719    1,006,949 
Veritext, Senior Secured Initial Term Loan (Second Lien), 8.91% (Libor + 7.00%), maturity 7/31/26   1,000,000    995,613    995,000 
Upstream Rehabilitation, Senior Secured Term Loan, 6.41% (Libor + 4.50%), maturity 11/20/26   1,000,000    995,045    992,500 
Packaging Coordinators, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 6/30/23(i)   984,694    990,391    978,540 
Alcami, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/14/25   987,500    983,389    972,688 
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 7.41% (Libor + 5.50%), maturity 5/9/25   987,500    975,453    960,344 
Dermatologists of Central States, Senior Secured Term Loan, 8.41% (Libor + 6.50%), maturity 4/20/22   977,310    970,785    960,207 
ATI Physical Therapy, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 5/10/23(i)   922,022    926,900    920,657 
Specialty Care, Senior Secured Initial Term Loan (Second Lien), 10.16% (Libor + 8.25%), maturity 9/1/24   850,000    843,325    850,000 
Athena, Senior Secured Term B Loan (First Lien), 6.41% (Libor + 4.50%), maturity 2/11/26(i)   497,494    495,129    500,973 
RMP & MedA/Rx, Senior Secured Term Loan, 6.41% (Libor + 4.50%), maturity 3/2/22   441,647    440,553    441,647 
Injured Workers Pharmacy, Senior Secured Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 7/22/20   378,724    375,038    375,883 
Alpaca, Senior Secured Revolver, 6.16% (Libor + 4.25%), maturity 4/19/24(j)   134,215    130,332    133,879 
Advarra, Senior Secured Initial Revolving Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/9/26(j)   -    (7,619)   - 
                
High Tech Industries               
Qlik, Senior Secured 2019 Incremental Term Loan, 6.16% (Libor + 4.25%), maturity 4/26/24   3,980,000    3,954,501    3,950,150 
Barracuda, Senior Secured 2019 Incremental Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 2/12/25(i)   3,451,222    3,464,246    3,477,852 
Masergy, Senior Secured Initial Loan (Second Lien), 9.41% (Libor + 7.50%), maturity 12/16/24   3,428,571    3,420,116    3,411,429 
Syncsort, Senior Secured 2018 Refinancing Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 8/16/24   3,421,688    3,397,118    3,387,471 
Sparta, Senior Secured New Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 8/21/24   3,421,250    3,423,008    3,344,272 
Jaggaer, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/14/26(i)   3,154,345    3,150,077    3,166,174 
Infogroup, Senior Secured Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 4/3/23   2,919,937    2,895,405    2,890,738 
McAfee, Senior Secured Term B USD Loan, 5.66% (Libor + 3.75%), maturity 9/30/24(i)   2,864,431    2,875,358    2,883,023 
eResearch (ERT), Senior Secured Initial Term Loan, 5.66% (Libor + 3.75%), maturity 5/2/23(i)   2,538,022    2,538,022    2,538,022 
ECi Software Solutions, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 9/27/24(i)   2,463,579    2,451,402    2,468,662 
EverCommerce, Senior Secured Initial Term Loan, 7.41% (Libor + 5.50%), maturity 8/23/25   2,184,679    2,142,420    2,179,217 
Idera, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 6/28/24   2,146,089    2,145,337    2,146,089 
Intermedia , Senior Secured New Term Loan (First Lien), 7.91% (Libor + 6.00%), maturity 7/21/25(i)   1,980,000    1,963,699    1,985,107 
Flexera Software, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 2/26/25(i)   1,965,000    1,970,591    1,973,626 
QuickBase, Senior Secured Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 4/2/26   1,990,000    1,981,139    1,970,100 
GlobalLogic, Senior Secured Initial Term Loan, 5.16% (Libor + 3.25%), maturity 8/1/25(i)   1,728,438    1,719,948    1,728,438 
Bomgar, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 4/18/25   1,723,750    1,733,891    1,702,203 
Liaison, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 12/20/26(i)   1,500,000    1,496,250    1,496,250 
OEConnection, Senior Secured Initial Term Loan, 5.91% (Libor + 4.00%), maturity 9/25/26   1,496,250    1,488,267    1,485,028 
Navex Global, Senior Secured Initial Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 9/5/25(i)   1,481,250    1,467,074    1,484,310 
Compusearch Software Systems, Senior Secured Term Loan C, 6.16% (Libor + 4.25%), maturity 5/8/23   1,432,979    1,432,391    1,425,814 
Ultimate Software , Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 5/4/26(i)   1,080,625    1,082,379    1,089,829 
Insurity, Senior Secured Closing Date Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 7/31/26   1,000,000    995,219    997,500 
Global Knowledge, Senior Secured Initial Term Loan (Second Lien), 12.16% (Libor + 10.25%), maturity 1/20/22   1,000,000    995,441    988,750 
LANDesk, Senior Secured Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 1/20/24(i)   978,627    969,988    981,924 
Corsair, Senior Secured Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 8/28/24   982,444    978,622    967,707 
Community Brands, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 12/2/22   834,254    830,477    825,912 
HelpSystems, Senior Secured Initial Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 11/19/26(i)   500,000    498,750    498,750 
Masergy, Senior Secured 2017 Replacement Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 12/15/23   484,908    483,405    482,484 
Endurance Int'l Group, Senior Secured Refinancing Loan (2018), 5.66% (Libor + 3.75%), maturity 2/9/23(i)   404,507    403,788    401,013 

 

The accompanying notes are an integral part of these financial statements.

 

11

 

Audax Credit BDC Inc.

Schedule of Investments

As of December 31, 2019 (Continued)

(Expressed in U.S. Dollars)

 

Portfolio Investments (a) (b) (c) (d) (e) (f)  Par   Cost   Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h) (Continued):               
                
Services: Business               
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 9/23/25  $3,990,000   $3,950,952   $3,970,050 
RevSpring, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 10/11/25   3,960,000    3,955,758    3,950,100 
Aimbridge, Senior Secured Initial Term Loan (2019) (First Lien), 5.66% (Libor + 3.75%), maturity 2/2/26   2,982,525    2,973,315    2,975,069 
Addison, Senior Secured Initial Term Loan, 6.91% (Libor + 5.00%), maturity 4/15/26   2,985,000    2,931,090    2,962,613 
Fleetwash, Senior Secured Incremental Term Loan, 6.66% (Libor + 4.75%), maturity 10/1/24   2,962,613    2,938,051    2,947,799 
Sterling Backcheck, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 6/19/24(i)   2,894,218    2,894,218    2,883,365 
Allied Universal, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 7/10/26(i)   2,613,149    2,591,810    2,635,788 
Cast & Crew, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 2/9/26(i)   2,481,250    2,484,662    2,497,618 
HireRight, Senior Secured Initial Term Loan (Second Lien), 9.16% (Libor + 7.25%), maturity 7/10/26   2,500,000    2,479,365    2,481,250 
Newport Group, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 9/12/25   2,471,231    2,458,304    2,452,697 
First Advantage, Senior Secured Term Loan (First Lien), 7.16% (Libor + 5.25%), maturity 6/30/22   2,000,000    1,996,094    1,990,000 
Vistage, Senior Secured Term B Loan (First Lien), 5.91% (Libor + 4.00%), maturity 2/10/25   1,965,000    1,961,739    1,960,088 
Service Logic, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 12/31/24   2,339,998    2,333,703    2,316,598 
Eliassen Group, Senior Secured Initial Term B Loan, 6.41% (Libor + 4.50%), maturity 11/5/24   1,493,123    1,486,683    1,489,390 
OSG Billing Services, Senior Secured Term B Loan (First Lien), 6.41% (Libor + 4.50%), maturity 3/27/24   1,474,855    1,470,192    1,467,481 
DBi Services, Senior Secured Term B Loan (Second Lien), 8.00% (Libor + 8.00%), maturity 2/2/26   1,268,869    1,268,869    1,268,869 
Diversified, Senior Secured Initial Term Loan, 6.66% (Libor + 4.75%), maturity 12/23/23   992,500    986,007    990,019 
WCG, Senior Secured Term Loan, 5.91% (Libor + 4.00%), maturity 1/8/27(i)   1,000,000    990,000    990,000 
Franklin Energy, Senior Secured Term B Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/14/26   997,500    995,123    987,525 
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 6/3/26(i)   498,747    494,694    498,747 
                
Chemicals, Plastics & Rubber               
Plaskolite, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 12/15/25   3,960,000    3,896,852    3,920,400 
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 5/30/24   3,427,599    3,413,966    3,341,909 
Universal Fiber Systems, Senior Secured Initial Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 10/4/21   2,811,462    2,806,249    2,741,176 
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 1/31/25   2,682,225    2,691,463    2,615,169 
Unifrax, Senior Secured USD Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 12/12/25(i)   2,476,241    2,454,997    2,286,895 
Q Holding, Senior Secured Term B Loan (2019), 6.91% (Libor + 5.00%), maturity 12/29/23   1,995,000    1,985,388    1,985,025 
Boyd Corp, Senior Secured Initial Loan (Second Lien), 8.66% (Libor + 6.75%), maturity 9/6/26   2,000,000    2,002,217    1,985,000 
DuBois Chemicals 2019, Senior Secured Term Loan (Second Lien), 10.41% (Libor + 8.50%), maturity 9/30/27   2,000,000    1,950,862    1,985,000 
Borchers, Senior Secured Term Loan, 6.41% (Libor + 4.50%), maturity 11/1/24   1,910,136    1,905,332    1,900,585 
Zep, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/12/24   1,956,225    1,954,251    1,584,542 
DuBois Chemicals 2019, Senior Secured Term Loan B (First Lien), 6.41% (Libor + 4.50%), maturity 9/30/26   1,560,865    1,516,107    1,549,159 
Spartech, Senior Secured Term Loan, 6.91% (Libor + 5.00%), maturity 10/17/25   1,000,000    985,134    992,500 
Vantage Specialty Chemicals, Senior Secured Closing Date Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 10/28/24   987,406    970,460    967,657 
Prince Minerals, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 3/31/25(i)   982,500    978,584    892,145 
                
Services: Consumer               
CIBT Holdings, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 6/3/24   5,424,266    5,407,341    5,370,023 
A Place For Mom, Senior Secured Term Loan, 5.66% (Libor + 3.75%), maturity 8/10/24   2,666,144    2,665,484    2,599,490 
Weld North, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 2/15/25   2,463,674    2,441,530    2,463,674 
Cambium Learning, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 12/18/25   2,475,000    2,365,058    2,462,625 
Smart Start, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 2/21/22   2,417,625    2,417,625    2,399,493 
Mister Car Wash, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 5/14/26(i)   1,990,000    1,985,439    2,002,726 
SMG, Senior Secured Initial Term Loan (First Lien), 4.91% (Libor + 3.00%), maturity 1/23/25(i)   1,976,118    1,963,737    1,976,118 
Valet Living, Senior Secured Initial Term Loan, 5.91% (Libor + 4.00%), maturity 9/28/25   1,983,718    1,979,195    1,973,800 
LegalShield, Senior Secured Initial Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 5/1/25   1,940,510    1,927,273    1,935,659 
Ned Stevens, Senior Secured Term A Loan, 7.66% (Libor + 5.75%), maturity 9/30/25(j)   1,603,824    1,572,794    1,591,795 
Spring Education, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/30/25   987,500    985,450    982,563 
Ned Stevens, Senior Secured Revolver, 6.66% (Libor + 4.75%), maturity 9/30/25(j)   -    (2,614)   - 
                
Aerospace & Defense               
CPI International, Senior Secured TL, 6.66% (Libor + 4.75%), maturity 7/26/24   4,000,000    3,960,000    3,970,000 
StandardAero, Senior Secured Initial Term B-1 Loan, 5.91% (Libor + 4.00%), maturity 4/6/26(i)   3,567,981    3,556,378    3,599,650 
StandardAero, Senior Secured Initial Term B-2 Loan, 5.91% (Libor + 4.00%), maturity 4/6/26(i)   1,918,269    1,912,031    1,935,296 
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 9.66% (Libor + 7.75%), maturity 4/30/26   1,500,000    1,514,877    1,485,000 
Tronair, Senior Secured Initial Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 9/8/23   1,459,899    1,453,639    1,427,051 
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 4/30/25(i)   497,481    495,124    494,358 
                
Banking, Finance, Insurance & Real Estate               
American Beacon Advisors, Senior Secured Tranche C Term Loan (Second Lien), 9.41% (Libor + 7.50%), maturity 4/30/23   2,000,000    2,000,000    1,995,000 
Kestra Financial, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 6/3/26   1,995,000    1,976,368    1,990,013 
Integro Insurance Brokers, Senior Secured Initial Term Loan (First Lien), 7.66% (Libor + 5.75%), maturity 10/31/22   1,989,457    1,951,565    1,939,721 
Advisor Group, Senior Secured Initial Term B Loan, 6.91% (Libor + 5.00%), maturity 7/31/26(i)   1,490,625    1,465,245    1,478,349 
EPIC Insurance, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 9/6/24   1,470,000    1,467,280    1,458,975 
AmeriLife Group, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 6/12/26   978,070    973,369    970,735 
Aperio, Senior Secured Loan, 6.91% (Libor + 5.00%), maturity 10/25/24   933,889    929,619    933,889 
                
Consumer Goods: Non-durable               
Manna Pro, Senior Secured Term Loan, 7.91% (Libor + 6.00%), maturity 12/8/23   3,438,750    3,399,412    3,412,959 
Augusta Sportswear Group, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 10/26/23   2,228,517    2,214,540    2,211,804 
Badger Sportswear, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 9/11/23   1,906,766    1,895,349    1,873,398 
Varsity Brands, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 12/16/24(i)   987,418    993,636    973,861 

 

The accompanying notes are an integral part of these financial statements.

 

12

 

 

 

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2019

(Expressed in U.S. Dollars)

 

 

Portfolio Investments (a) (b) (c) (d) (e) (f)  Par   Cost   Value 
BANK LOANS:  NON-CONTROL/NON-AFFILIATE INVESTMENTS(h) (Continued):            
             
Containers, Packaging & Glass               
ProAmpac, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 11/20/23(i)  $3,000,535   $3,017,391   $2,972,870 
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 7/18/26   1,995,000    1,985,448    1,995,000 
Tank Holding, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 3/26/26(i)   997,500    993,032    1,003,416 
Pregis Corporation, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 7/31/26   1,000,000    997,605    995,000 
TricorBraun, Senior Secured Closing Date Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 11/30/23(i)   494,901    494,901    491,978 
Alpha Packaging, Senior Secured Tranche B-1 Term Loan, 6.16% (Libor + 4.25%), maturity 5/12/20   488,837    488,275    483,338 
                
Capital Equipment               
MW Industries, Senior Secured 2018 New Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 9/30/24   2,443,750    2,443,750    2,419,313 
BAS, Senior Secured Repricing Term Loan, 5.66% (Libor + 3.75%), maturity 5/21/24   1,969,661    1,971,159    1,959,812 
Edward Don, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 7/2/25   1,478,769    1,472,799    1,452,890 
Cole-Parmer, Senior Secured Closing Date Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 11/4/26   1,000,000    995,111    992,500 
Excelitas, Senior Secured Initial USD Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 12/2/24   493,703    497,366    490,000 
TriMark, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 8/28/24(i)   491,207    492,665    406,376 
                
Wholesale               
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 4.91% (Libor + 3.00%), maturity 3/20/25   3,935,671    3,936,089    3,906,153 
PetroChoice, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 8/19/22   1,915,184    1,893,658    1,891,245 
ABB Optical, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 6/15/23   1,454,906    1,452,426    1,422,170 
                
Transportation: Cargo               
Odyssey Logistics & Technology , Senior Secured New Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 10/12/24   3,615,344    3,611,340    3,588,229 
Transplace, Senior Secured Closing Date Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 10/7/24(i)   2,466,458    2,459,768    2,460,292 
Capstone Logistics, Senior Secured Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 10/7/21   1,161,707    1,161,868    1,144,282 
                
Construction & Building               
PlayPower, Senior Secured Initial Term Loan, 7.41% (Libor + 5.50%), maturity 5/8/26   1,934,722    1,934,722    1,920,212 
Tangent, Senior Secured Closing Date Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 11/30/24   1,496,238    1,480,815    1,488,757 
DiversiTech Corporation, Senior Secured Tranche B-1 Term Loan (First Lien), 4.91% (Libor + 3.00%), maturity 6/3/24   1,474,832    1,462,983    1,460,084 
PlayCore, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 9/30/24(i)   976,912    975,059    964,701 
CHI Overhead Doors, Senior Secured Initial Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 7/29/22(i)   628,442    623,246    630,799 
Hoffman Southwest, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 8/14/23   527,876    523,556    525,237 
                
Automotive               
Mavis, Senior Secured Closing Date Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 3/20/25(i)   3,592,566    3,578,510    3,516,090 
Truck Hero, Senior Secured Initial Term Loan (Second Lien), 10.16% (Libor + 8.25%), maturity 4/21/25   1,800,000    1,798,507    1,795,500 
Safe Fleet, Senior Secured Tranche B-1 Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 2/3/25   987,500    963,545    982,563 
                
Media: Advertising, Printing & Publishing               
Ansira, Unitranche, 7.66% (Libor + 5.75%), maturity 12/20/22   1,905,523    1,893,460    1,872,177 
Northstar, Senior Secured Term Loan, 8.16% (Libor + 6.25%), maturity 6/7/22   1,449,510    1,449,510    1,438,639 
Imagine! Print Solutions, Senior Secured Term B-1 Loan (First Lien), 6.66% (Libor + 4.75%), maturity 6/21/22   1,458,750    1,451,152    1,035,712 
Vestcom International, Senior Secured L/C Collaterilized, 5.91% (Libor + 4.00%), maturity 12/19/23   783,878    786,703    777,999 
                
Forest Products & Paper               
Hoffmaster Group, Senior Secured Tranche B-1 Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 11/21/23   2,927,277    2,915,319    2,898,005 
Loparex, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 7/31/26   1,496,250    1,481,906    1,481,288 
                
Beverage, Food & Tobacco               
Sovos Brands, Senior Secured Initial Term Loan (2018), 6.91% (Libor + 5.00%), maturity 11/20/25   1,980,000    1,962,677    1,960,200 
Kettle Cuisine, Senior Secured Initial Term Loan (First Lien) , 5.66% (Libor + 3.75%), maturity 8/25/25   1,975,000    1,966,820    1,970,063 
                
Hotel, Gaming & Leisure               
On Location, Senior Secured Second Amendment Term Loan, 6.91% (Libor + 5.00%), maturity 9/29/21   2,396,566    2,384,489    2,384,584 
Auto Europe, Senior Secured Initial Dollar Term Loan, 6.91% (Libor + 5.00%), maturity 10/21/23   1,119,231    1,110,756    1,119,231 
                
Consumer Goods: Durable               
Strategic Partners, Senior Secured Initial Term Loan, 5.66% (Libor + 3.75%), maturity 6/30/23   2,309,428    2,306,211    2,309,428 
                
Retail               
Grocery Outlet, Senior Secured 2019 Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 10/22/25(i)   1,269,483    1,266,905    1,286,070 
                
Metals & Mining               
Dynatect, Senior Secured Term B Loan, 6.41% (Libor + 4.50%), maturity 9/30/22   997,579    990,633    987,604 
                
Health Care Equipment & Services               
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 8/31/26(i)   525,311    519,256    526,851 
                
Total Bank Loans       $331,601,425   $330,155,654 

 

13

 

 

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2019

(Expressed in U.S. Dollars)

 

  

Portfolio Investments (a) (b) (c) (d) (e) (f)  Par   Cost  Value 
EQUITY AND PREFERRED SHARES:  NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.2%)(g)(h):           
            
Services: Business             
DBi Services, Class A-1 Preferred Units (800.53 units)(k)      $800,535  $400,267 
DBi Services, Class B Common Shares (169,362.31 shares)(l)(m)       -   - 
             
Services: Consumer             
Ned Stevens, Class B Common Units (261,438 Common B units, Fair value of $261,438)(f)(j)(m)(n)(o)       261,438   261,438 
              
Healthcare & Pharmaceuticals             
Alpaca, Class A Units (33,300.04 Class A Units, Fair value of $57,552)(f)(i)(j)(m)(o)(p)       58,608   57,552 
Total Equity and Preferred Shares      $1,120,581  $719,257 
              
Total Portfolio Investments(q)      $332,722,006  $330,874,911 

 

(a) All companies are located in the United States of America, unless otherwise noted.
(b) Interest rate percentages represent actual interest rates which are indexed from then 30-day London Interbank Offered Rate ("LIBOR") unless otherwise noted. LIBOR rates are subject  to interest rate floors which can vary based on the contractual agreement with the borrower.  Due dates represent the contractual maturity date.
(c) All loans are income-producing, unless otherwise noted.
(d) All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act") unless otherwise noted.
(e) All investments are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.
(f) Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
(g) Percentages are calculated using fair value of investments over net assets.
(h) As defined in 1940 Act, the Company is not deemed to be an “Affiliated Person” of or “Control” this portfolio company because it neither owns 5% or more of the portfolio company’s outstanding voting securities nor has the power to exercise control over the management or policies of such portfolio company (including through a management agreement).
(i) Investment was valued using Level 2 inputs within the ASC 820 fair value hierarchy.Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
(j) Three of our affiliated