10-Q 1 a17-20660_110q.htm 10-Q

Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended September 30, 2017

 

OR

 

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

 

Commission file number: 814-01175

 

BAIN CAPITAL SPECIALTY FINANCE, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

 

81-2878769

(State or Other Jurisdiction of
Incorporation or Organization)

 

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

 

 

 

200 Clarendon Street, 37th Floor
Boston, MA

 

02116

(Address of Principal Executive Office)

 

(Zip Code)

 

(617) 516-2000

(Registrant’s Telephone Number, Including Area Code)

 

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 o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes o     No o

 

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 the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer o

 

Accelerated filer o

 

 

 

Non-accelerated filer x

 

Smaller reporting company o

(Do not check if a smaller reporting company)

 

Emerging growth companyo

 

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.   o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o    No x

 

As of November 13, 2017, the registrant had 24,931,841.86 shares of common stock, $0.001 par value, outstanding.

 

 

 



Table of Contents

 

TABLE OF CONTENTS

 

 

 

 

Page

 

 

 

 

PART I

 

FINANCIAL INFORMATION

4

 

 

 

 

Item 1.

 

Consolidated Financial Statements

4

 

 

 

 

 

 

Consolidated Statements of Assets and Liabilities as of September 30, 2017 (Unaudited) and December 31, 2016

4

 

 

 

 

 

 

Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016 (Unaudited)

5

 

 

 

 

 

 

Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2017 and 2016 (Unaudited)

6

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 (Unaudited)

7

 

 

 

 

 

 

Consolidated Schedule of Investments as of September 30, 2017 (Unaudited)

8

 

 

 

 

 

 

Schedule of Investments as of December 31, 2016

11

 

 

 

 

 

 

Notes to Consolidated Financial Statements

12

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

31

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

44

 

 

 

 

Item 4.

 

Controls and Procedures

44

 

 

 

 

PART II

 

OTHER INFORMATION

46

 

 

 

 

Item 1.

 

Legal Proceedings

46

 

 

 

 

Item 1A.

 

Risk Factors

46

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

46

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

46

 

 

 

 

Item 4.

 

Mine Safety Disclosures

46

 

 

 

 

Item 5.

 

Other Information

46

 

 

 

 

Item 6.

 

Exhibits

47

 

 

 

 

Signatures

 

 

48

 

2


 


Table of Contents

 

FORWARD-LOOKING STATEMENTS

 

Statements contained in this Quarterly Report on Form 10-Q (the “Quarterly Report”) (including those relating to current and future market conditions and trends in respect thereof) that are not historical facts are based on current expectations, estimates, projections, opinions and/or beliefs of the Company, BCSF Advisors, LP (the “Advisor”) and/or Bain Capital Credit, LP and its affiliated advisers (collectively, “Bain Capital Credit”). Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. Certain information contained in this Quarterly Report constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “seek,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” “target,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of the Company may differ materially from those reflected or contemplated in such forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors we identify in the section entitled Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K (the “Annual Report”) for the fiscal year ended December 31, 2016 and in our filings with the Securities and Exchange Commission (the “SEC”).

 

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, some of those assumptions may be based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, the forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly Report should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in the section entitled Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report. We do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which preclude civil liability for certain forward-looking statements, do not apply to the forward-looking statements in this Quarterly Report because we are an investment company.

 

3



Table of Contents

 

PART I. FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

Bain Capital Specialty Finance, Inc.

 

Consolidated Statements of Assets and Liabilities

 

 

 

As of

 

As of

 

 

September 30, 2017

 

December 31, 2016

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

Non-controlled/non-affiliate investments (amortized cost of $467,907,834 and $106,251,499, respectively)

 

$

475,372,716

 

$

107,942,008

 

Controlled affiliate investments (amortized cost of $8,005,359 and $0, respectively)

 

8,005,359

 

 

Cash and cash equivalents

 

37,813,409

 

66,732,154

 

Foreign cash (cost of $719,766 and $0, respectively)

 

728,717

 

 

Collateral on forward currency exchange contracts

 

4,220,000

 

 

Deferred financing costs

 

815,059

 

1,088,751

 

Deferred offering costs

 

15,000

 

329,995

 

Interest receivable on investments

 

1,795,921

 

596,164

 

Prepaid insurance

 

2,078

 

139,875

 

Receivable for sales and paydowns of investments

 

21,402

 

20,415

 

Other assets

 

 

5,723

 

Total Assets

 

$

528,789,661

 

$

176,855,085

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Revolving credit facility

 

$

 

$

59,100,000

 

Interest payable

 

71,300

 

17,992

 

Payable for investments purchased

 

11,024,441

 

6,266,467

 

Unrealized depreciation on forward currency exchange contracts

 

2,643,944

 

 

Base management fee payable

 

856,260

 

178,204

 

Incentive fee payable

 

703,400

 

253,576

 

Accounts payable and accrued expenses

 

1,358,383

 

478,419

 

Directors fees payable

 

 

133,806

 

Distributions payable

 

5,235,687

 

82,363

 

Total Liabilities

 

21,893,415

 

66,510,827

 

 

 

 

 

 

 

Commitments and Contingencies (See Note 10)

 

 

 

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

 

Preferred stock, $0.001 par value per share, 10,000,000,000 shares authorized, none issued and outstanding as of September 30, 2017 and December 31, 2016, respectively

 

$

 

$

 

Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized, 24,931,842 and 5,490,882 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively

 

24,932

 

5,491

 

Paid in capital in excess of par value

 

502,659,613

 

109,677,129

 

Accumulated undistributed net investment income (loss)

 

(477,633

)

(1,028,871

)

Accumulated undistributed net realized loss

 

(140,774

)

 

Net unrealized appreciation

 

4,830,108

 

1,690,509

 

Total Net Assets

 

506,896,246

 

110,344,258

 

Total Liabilities and Total Net assets

 

$

528,789,661

 

$

176,855,085

 

 

 

 

 

 

 

Net asset value per share

 

$

20.33

 

$

20.10

 

 

See Notes to Consolidated Financial Statements

 

4



Table of Contents

 

Bain Capital Specialty Finance, Inc.

 

Consolidated Statements of Operations

(Unaudited)

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

2017

 

2016

 

2017

 

2016

Income

 

 

 

 

 

 

 

 

 

Investment income from non-controlled/non-affiliate investments:

 

 

 

 

 

 

 

 

 

Interest from investments

 

$

7,793,040

 

$

 

$

14,467,794

 

$

 

Other income

 

 

 

88,988

 

 

Total investment income from non-controlled/non-affiliate investments

 

7,793,040

 

 

14,556,782

 

 

Investment income from controlled affiliate investments:

 

 

 

 

 

 

 

 

 

Interest from investments

 

24,060

 

 

31,906

 

 

Total investment income from controlled affiliate investments:

 

24,060

 

 

31,906

 

 

Total investment income

 

7,817,100

 

 

14,588,688

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Interest and debt financing expenses

 

$

223,945

 

$

 

$

621,853

 

$

 

Amortization of deferred offering costs

 

106,152

 

 

314,995

 

 

Base management fee

 

856,260

 

 

1,704,975

 

 

Incentive fee

 

240,003

 

 

449,824

 

 

Organizational costs

 

 

725,768

 

 

725,768

 

Professional fees

 

506,756

 

63,878

 

1,406,462

 

63,878

 

Directors fees

 

68,250

 

68,753

 

204,312

 

68,753

 

Other general and administrative expenses

 

213,822

 

 

500,313

 

 

Total expenses

 

2,215,188

 

858,399

 

5,202,734

 

858,399

 

Net investment income (loss)

 

5,601,912

 

(858,399

)

9,385,954

 

(858,399

)

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gains (losses)

 

 

 

 

 

 

 

 

 

Net realized gain on non-controlled/non-affiliate investments

 

48,735

 

 

81,336

 

 

Net realized loss on foreign currency transactions

 

(583,149

)

 

(2,104

)

 

Net realized loss on forward currency exchange contracts

 

 

 

(220,006

)

 

Net change in unrealized appreciation on foreign currency translation

 

448,252

 

 

9,170

 

 

Net change in unrealized depreciation on forward currency exchange contracts

 

(1,234,706

)

 

(2,643,944

)

 

Net change in unrealized appreciation on non-controlled/non-affiliate investments

 

2,920,895

 

 

5,774,373

 

 

Total net realized and unrealized gains

 

1,600,027

 

 

2,998,825

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

7,201,939

 

$

(858,399

)

$

12,384,779

 

$

(858,399

)

 

 

 

 

 

 

 

 

 

 

Per Common Share Data

 

 

 

 

 

 

 

 

 

Basic and diluted net investment income per common share

 

$

0.22

 

$

(858.40

)

$

0.53

 

$

(858.40

)

Basic and diluted increase in net assets resulting from operations per common share

 

$

0.29

 

$

(858.40

)

$

0.70

 

$

(858.40

)

Basic and diluted weighted average common shares outstanding

 

24,921,589

 

1,000

 

17,725,983

 

1,000

 

 

See Notes to Consolidated Financial Statements

 

5



Table of Contents

 

Bain Capital Specialty Finance, Inc.

 

Consolidated Statements of Changes in Net Assets

(Unaudited)

 

 

 

For the Nine Months Ended September 30,

 

 

2017

 

2016

 

 

 

 

 

 

Operations:

 

 

 

 

 

Net investment income (loss)

 

$

9,385,954

 

$

(858,399

)

Net realized loss

 

(140,774

)

 

Net change in unrealized appreciation

 

3,139,599

 

 

Net increase (decrease) in net assets resulting from operations

 

12,384,779

 

(858,399

)

Stockholder distributions:

 

 

 

 

 

Distributions from net investment income

 

(9,149,711

)

 

Net decrease in net assets resulting from stockholder distributions

 

(9,149,711

)

 

Capital share transactions:

 

 

 

 

 

Issuance of common stock

 

392,735,221

 

 

Reinvestment of stockholder distributions

 

581,699

 

 

Net increase in net assets resulting from capital share transactions

 

393,316,920

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

396,551,988

 

(858,399

)

Net assets at beginning of period

 

110,344,258

 

 

Net assets at end of period

 

$

506,896,246

 

$

(858,399

)

 

 

 

 

 

 

Net asset value per common share

 

$

20.33

 

$

(858.40

)

Common stock outstanding at end of period

 

24,931,842

 

1,000

 

 

See Notes to Consolidated Financial Statements

 

6



Table of Contents

 

Bain Capital Specialty Finance, Inc.

 

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

For the Nine Months Ended September 30,

 

 

2017

 

2016

Cash flows from operating activities

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

12,384,779

 

$

(858,399

)

Adjustments to reconcile net increase (decrease) in net assets from operations to net cash used in operating activities:

 

 

 

 

 

Purchases of investments

 

(390,313,756

)

 

Proceeds from principal payments and sales of investments

 

26,029,281

 

 

Net realized gain from investments

 

(81,336

)

 

Net realized loss on foreign currency transactions

 

2,104

 

 

Net change in unrealized depreciation on forward currency exchange contracts

 

2,643,944

 

 

Net change in unrealized appreciation on investments

 

(5,774,373

)

 

Net change in unrealized appreciation on foreign currency translation

 

(9,170

)

 

Accretion of discounts and amortization of premiums

 

(538,677

)

 

Amortization of deferred financing costs and upfront commitment fees

 

273,692

 

 

Amortization of deferred offering costs

 

314,995

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

Collateral on forward currency exchange contracts

 

(4,220,000

)

 

Interest receivable on investments

 

(1,199,757

)

 

Prepaid insurance

 

137,797

 

 

Other assets

 

5,723

 

 

Interest payable

 

53,308

 

 

Base management fee payable

 

678,056

 

 

Incentive fee payable

 

449,824

 

 

Accounts payable and accrued expenses

 

879,964

 

858,399

 

Directors fees payable

 

(133,806

)

 

Net cash used in operating activities

 

(358,417,408

)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Borrowings on revolving credit facility

 

94,899,918

 

 

Repayments on revolving credit facility

 

(154,563,966

)

 

Proceeds from issuance of common stock

 

392,735,221

 

 

Stockholder distributions paid

 

(3,414,688

)

 

Net cash provided by financing activities

 

329,656,485

 

 

 

 

 

 

 

 

Net decrease in cash, foreign cash and cash equivalents

 

(28,760,923

)

 

Effect of foreign currency exchange rates

 

570,895

 

 

Cash, foreign cash and cash equivalents, beginning of period

 

66,732,154

 

 

Cash, foreign cash and cash equivalents, end of period

 

$

38,542,126

 

$

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Cash interest paid during the period

 

$

294,853

 

$

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

Reinvestment of stockholder distributions

 

$

581,699

 

$

 

 

See Notes to Consolidated Financial Statements

 

7



Table of Contents

 

Bain Capital Specialty Finance, Inc.

 

Consolidated Schedule of Investments

As of September 30, 2017

(Unaudited)

 

Portfolio Company (4)

 

Spread Above
Index 
(1)

 

Interest Rate

 

Maturity Date

 

Principal/
Par Amount/
Shares 
(9)

 

Amortized Cost

 

Fair Value

 

Investments and Cash Equivalents 102.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments 95.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Controlled/Non-Affiliate Investments 93.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Fixed Income 1.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Bond 1.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Utilities: Electric 1.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

CSVC Acquisition Corp

 

 

7.75

%

6/15/2025

 

$

8,478,000

 

8,478,000

 

8,329,635

 

Total Utilities: Electric

 

 

 

 

 

 

 

 

 

 

8,478,000

 

8,329,635

 

Total Corporate Bond

 

 

 

 

 

 

 

 

 

 

8,478,000

 

8,329,635

 

Total Corporate Fixed Income

 

 

 

 

 

 

 

 

 

 

8,478,000

 

8,329,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Debt 92.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delayed Draw Term Loan 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Equipment 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Endries International, Inc. (2) (3) (16) (19)

 

 

 

6/1/2023

 

$

 

(46,687

)

 

Total Capital Equipment

 

 

 

 

 

 

 

 

 

 

(46,687

)

 

Healthcare & Pharmaceuticals 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Great Expressions Dental Centers PC (2) (3) (16) (19)

 

 

 

9/28/2023

 

$

 

(4,323

)

(3,335

)

Total Healthcare & Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

(4,323

)

(3,335

)

Hotel, Gaming & Leisure 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NPC International, Inc. (2) (3) (16) (19)

 

 

 

4/18/2025

 

$

 

(19,358

)

(20,002

)

Total Hotel, Gaming & Leisure

 

 

 

 

 

 

 

 

 

 

(19,358

)

(20,002

)

Media: Diversified & Production 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Entertainment Investments Limited (3) (5) (6) (12) (19)

 

GBP LIBOR + 4.00

%

4.25

%

2/28/2022

 

£

599,178

 

753,868

 

789,214

 

Total Media: Diversified & Production

 

 

 

 

 

 

 

 

 

 

753,868

 

789,214

 

Services: Business 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sovos Compliance, LLC (3) (16) (19)

 

 

 

3/1/2022

 

$

 

 

 

Total Services: Business

 

 

 

 

 

 

 

 

 

 

 

 

Total Delayed Draw Term Loan

 

 

 

 

 

 

 

 

 

 

683,500

 

765,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First lien last out term loan 3.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Environmental Industries 3.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adler & Allan Group Limited (6) (12) (18) (19)

 

GBP LIBOR + 7.50

%

8.00

%

6/30/2024

 

£

15,141,463

 

19,051,907

 

19,880,801

 

Total Environmental Industries

 

 

 

 

 

 

 

 

 

 

19,051,907

 

19,880,801

 

Total First lien last out term loan

 

 

 

 

 

 

 

 

 

 

19,051,907

 

19,880,801

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First lien senior secured loan 73.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense 4.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anaren, Inc. (16)

 

L + 4.50

%

5.83

%

2/18/2021

 

$

2,527,521

 

2,540,100

 

2,543,318

 

Novetta, LLC (16)

 

L + 5.00

%

6.34

%

10/17/2022

 

$

3,864,126

 

3,777,183

 

3,762,693

 

Salient CRGT, Inc. (16) (19)

 

L + 5.75

%

6.99

%

2/28/2022

 

$

3,787,240

 

3,719,186

 

3,815,644

 

StandardAero Aviation Holdings, Inc. (16)

 

L + 3.75

%

4.99

%

7/7/2022

 

$

9,949,239

 

10,058,122

 

10,033,807

 

Total Aerospace & Defense

 

 

 

 

 

 

 

 

 

 

20,094,591

 

20,155,462

 

Automotive 2.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CST Buyer Company (16) (19)

 

L + 6.25

%

7.75

%

3/1/2023

 

$

10,269,392

 

10,129,641

 

10,341,278

 

Total Automotive

 

 

 

 

 

 

 

 

 

 

10,129,641

 

10,341,278

 

Beverage, Food & Tobacco 3.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

K-Mac Holdings Corp. (16) (19)

 

L + 4.75

%

5.99

%

12/20/2022

 

$

14,130,000

 

13,936,854

 

14,214,780

 

Restaurant Technologies, Inc. (16)

 

L + 4.75

%

6.06

%

11/23/2022

 

$

5,279,919

 

5,233,583

 

5,273,319

 

Total Beverage, Food & Tobacco

 

 

 

 

 

 

 

 

 

 

19,170,437

 

19,488,099

 

Capital Equipment 5.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dorner Manufacturing Corp. (16) (19)

 

L + 5.75

%

7.08

%

3/15/2023

 

$

8,309,751

 

8,119,786

 

8,318,060

 

DXP Enterprises, Inc. (6) (16)

 

L + 5.50

%

6.74

%

8/29/2023

 

$

5,243,459

 

5,191,828

 

5,227,073

 

Endries International, Inc. (16) (19)

 

L + 4.75

%

5.98

%

6/1/2023

 

$

6,556,711

 

6,463,498

 

6,556,711

 

Excelitas Technologies Corp. (16)

 

L + 5.00

%

6.34

%

11/2/2020

 

$

4,029,177

 

4,049,348

 

4,042,607

 

Wilsonart LLC (16)

 

L + 3.25

%

4.59

%

12/19/2023

 

$

2,487,500

 

2,508,139

 

2,498,383

 

Total Capital Equipment

 

 

 

 

 

 

 

 

 

 

26,332,599

 

26,642,834

 

Chemicals, Plastics & Rubber 1.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASP Chromaflo Intermediate Holdings, Inc. (16)

 

L + 4.00

%

5.24

%

11/20/2023

 

$

511,278

 

509,066

 

514,634

 

ASP Chromaflo Intermediate Holdings, Inc. (6) (16)

 

L + 4.00

%

5.24

%

11/20/2023

 

$

664,825

 

661,948

 

669,188

 

Niacet b.v. (6) (16) (19)

 

EURIBOR + 4.50

%

5.50

%

2/1/2024

 

3,874,930

 

4,142,004

 

4,585,013

 

Niacet Corporation (16) (19)

 

L + 4.50

%

5.83

%

2/1/2024

 

$

2,228,800

 

2,208,712

 

2,234,372

 

Total Chemicals, Plastics & Rubber

 

 

 

 

 

 

 

 

 

 

7,521,730

 

8,003,207

 

Construction & Building 3.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bolt Infrastructure Merger Sub, Inc. (16)

 

L + 4.00

%

5.24

%

6/21/2024

 

$

2,704,225

 

2,691,077

 

2,726,197

 

Regan Development Holdings Limited (6) (12) (18) (19)

 

EURIBOR + 7.00

%

7.50

%

5/2/2022

 

2,825,002

 

3,077,840

 

3,334,350

 

Regan Development Holdings Limited (6) (12) (18) (19)

 

EURIBOR + 7.00

%

7.50

%

5/2/2022

 

8,574,506

 

9,155,788

 

10,120,489

 

Regan Development Holdings Limited (6) (12) (18) (19)

 

EURIBOR + 7.00

%

7.50

%

5/2/2022

 

1,041,198

 

1,182,488

 

1,228,926

 

Total Capital Equipment

 

 

 

 

 

 

 

 

 

 

16,107,193

 

17,409,962

 

Consumer goods: non-durable 4.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FineLine Technologies, Inc. (16) (19)

 

L + 4.75

%

6.08

%

11/2/2022

 

$

14,696,036

 

14,411,227

 

14,475,596

 

Kronos Acquisition Holdings Inc. (16)

 

L + 4.50

%

5.74

%

8/26/2022

 

$

2,783,522

 

2,776,725

 

2,809,269

 

Melissa & Doug, LLC (16) (19)

 

L + 4.50

%

5.83

%

6/19/2024

 

$

3,840,305

 

3,822,477

 

3,890,709

 

Total Consumer goods: non-durable

 

 

 

 

 

 

 

 

 

 

21,010,429

 

21,175,574

 

Containers, Packaging & Glass 4.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BWAY Holding Company

 

L + 3.25

%

4.48

%

4/3/2024

 

$

9,975,000

 

9,945,959

 

10,006,172

 

CSP Technologies North America, LLC (16) (19)

 

L + 5.25

%

6.58

%

1/29/2022

 

$

12,317,703

 

12,317,703

 

12,348,497

 

Total Containers, Packaging & Glass

 

 

 

 

 

 

 

 

 

 

22,263,662

 

22,354,669

 

Energy: Oil & Gas 2.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keane Group, Inc. (6) (16) (19)

 

L + 7.25

%

8.63

%

8/18/2022

 

$

13,828,125

 

13,696,455

 

13,828,125

 

Total Energy: Oil & Gas

 

 

 

 

 

 

 

 

 

 

13,696,455

 

13,828,125

 

Healthcare & Pharmaceuticals 7.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Drive DeVilbiss (16)

 

L + 5.50

%

6.83

%

1/3/2023

 

$

6,757,111

 

6,208,247

 

6,301,006

 

Endo Luxembourg Holding Company S.a.r.l. and NIMA (6) (17)

 

L + 4.25

%

5.50

%

4/29/2024

 

$

14,962,500

 

15,202,423

 

15,130,828

 

Great Expressions Dental Centers PC (16) (19)

 

L + 4.75

%

6.00

%

9/28/2023

 

$

8,084,340

 

7,974,935

 

8,043,918

 

Island Medical Management Holdings, LLC (16) (19)

 

L + 5.50

%

7.00

%

9/1/2022

 

$

10,655,883

 

10,498,028

 

10,442,766

 

Total Healthcare & Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

39,883,633

 

39,918,518

 

High Tech Industries 14.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lighthouse Network, LLC (16) (19)

 

L + 4.75

%

5.99

%

10/13/2023

 

$

12,045,813

 

11,938,572

 

12,060,871

 

Netsmart Technologies, Inc. (16)

 

L + 4.50

%

5.83

%

4/19/2023

 

$

16,207,234

 

16,242,772

 

16,379,436

 

Qlik Technologies (16)

 

L + 3.50

%

4.81

%

4/26/2024

 

$

14,962,500

 

14,939,310

 

14,691,305

 

SolarWinds Holdings, Inc. (16)

 

L + 3.50

%

4.74

%

2/3/2023

 

$

9,949,875

 

10,020,448

 

9,998,589

 

Zywave, Inc. (16) (19)

 

L + 5.00

%

6.32

%

11/17/2022

 

$

17,773,344

 

17,626,339

 

17,773,344

 

Total High Tech Industries

 

 

 

 

 

 

 

 

 

 

70,767,441

 

70,903,545

 

Media: Diversified & Production 4.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deluxe Entertainment Services Group Inc. (16)

 

L + 5.50

%

6.81

%

2/28/2020

 

$

12,858,859

 

12,226,090

 

12,947,264

 

International Entertainment Investments Limited (6) (12) (19)

 

GBP LIBOR + 4.75

%

5.00

%

5/31/2022

 

£

7,673,114

 

9,263,780

 

10,280,438

 

Total Media: Diversified & Production

 

 

 

 

 

 

 

 

 

 

21,489,870

 

23,227,702

 

 

8



Table of Contents

 

Real Estate 2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spectre (Carrisbrook House) Limited (6) (16) (19)

 

EURIBOR + 7.50

%

8.50

%

8/9/2021

 

9,300,000

 

10,633,539

 

10,647,486

 

Total Real Estate

 

 

 

 

 

 

 

 

 

 

10,633,539

 

10,647,486

 

Retail 0.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CH Hold Corp. (16)

 

L + 3.00

%

4.24

%

2/1/2024

 

$

1,517,767

 

1,514,816

 

1,529,466

 

Total Retail

 

 

 

 

 

 

 

 

 

 

1,514,816

 

1,529,466

 

Services: Business 7.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Sales & Marketing Inc. (16)

 

L + 3.25

%

4.49

%

7/23/2021

 

$

9,948,718

 

9,879,211

 

9,451,282

 

Camelot Finance LP (6) (16)

 

L + 3.50

%

4.74

%

10/3/2023

 

$

7,960,000

 

8,031,213

 

7,999,179

 

Genuine Financial Holdings LLC (16) (19)

 

L + 4.75

%

6.13

%

1/26/2023

 

$

9,518,355

 

9,412,082

 

9,604,020

 

Sovos Compliance, LLC (16) (19)

 

L + 6.00

%

7.24

%

3/1/2022

 

$

8,709,675

 

8,626,295

 

8,622,578

 

Travel Leaders Group, LLC

 

L + 4.50

%

5.81

%

1/25/2024

 

$

294,836

 

293,539

 

298,245

 

Total Services: Business

 

 

 

 

 

 

 

 

 

 

36,242,340

 

35,975,304

 

Telecommunications 2.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Masergy Holdings, Inc. (16)

 

L + 3.75

%

5.08

%

12/15/2023

 

$

694,866

 

691,789

 

700,077

 

Polycom, Inc. (16)

 

L + 5.25

%

6.48

%

9/27/2023

 

$

13,291,168

 

13,120,652

 

13,484,993

 

Total Telecommunications

 

 

 

 

 

 

 

 

 

 

13,812,441

 

14,185,070

 

Wholesale 3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Tire Distributors Inc (16)

 

L + 4.25

%

5.49

%

9/1/2021

 

$

14,923,469

 

15,007,917

 

15,032,291

 

Total Wholesale

 

 

 

 

 

 

 

 

 

 

15,007,917

 

15,032,291

 

Total First lien senior secured loan

 

 

 

 

 

 

 

 

 

 

365,678,734

 

370,818,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolver 0.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CST Buyer Company (2) (3) (16) (19)

 

 

 

3/1/2023

 

$

 

(12,158

)

6,282

 

Total Automotive

 

 

 

 

 

 

 

 

 

 

(12,158

)

6,282

 

Beverage, Food & Tobacco 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

K-Mac Holdings Corp. (3) (16) (19)

 

L + 3.50

%

3.88

%

2/28/2022

 

$

202,667

 

202,667

 

212,267

 

Total Beverage, Food & Tobacco

 

 

 

 

 

 

 

 

 

 

202,667

 

212,267

 

Capital Equipment 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dorner Manufacturing Corp. (3) (16) (19)

 

L + 5.75

%

7.08

%

3/15/2023

 

$

494,497

 

469,385

 

497,794

 

Endries International, Inc. (3) (16) (19)

 

P + 3.75

%

8.00

%

6/1/2022

 

$

437,808

 

391,780

 

437,808

 

Total Capital Equipment

 

 

 

 

 

 

 

 

 

 

861,165

 

935,602

 

Consumer goods: non-durable 0.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FineLine Technologies, Inc. (3) (16) (19)

 

P + 3.75

%

8.00

%

11/2/2021

 

$

655,181

 

606,915

 

615,870

 

Total Consumer goods: non-durable

 

 

 

 

 

 

 

 

 

 

606,915

 

615,870

 

Healthcare & Pharmaceuticals 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Great Expressions Dental Centers PC (3) (16) (19)

 

L + 4.75

%

6.69

%

9/28/2022

 

$

933,600

 

918,928

 

927,765

 

Total Healthcare & Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

918,928

 

927,765

 

High Tech Industries 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zywave, Inc. (2) (3) (16) (19)

 

 

 

11/17/2022

 

$

 

(16,432

)

 

Total High Tech Industries

 

 

 

 

 

 

 

 

 

 

(16,432

)

 

Services: Business 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sovos Compliance, LLC (2) (3) (16) (19)

 

 

 

3/1/2022

 

$

 

(14,003

)

(14,516

)

Total Services: Business

 

 

 

 

 

 

 

 

 

 

(14,003

)

(14,516

)

Total Revolver

 

 

 

 

 

 

 

 

 

 

2,547,082

 

2,683,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second lien senior secured loan 14.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense 2.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TECT Power Holdings, LLC (16) (19)

 

L + 8.50

%

9.74

%

12/27/2021

 

$

14,757,969

 

14,474,262

 

14,757,969

 

Total Aerospace & Defense

 

 

 

 

 

 

 

 

 

 

14,474,262

 

14,757,969

 

Beverage, Food & Tobacco 0.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant Technologies, Inc. (16) (19)

 

L + 8.75

%

10.06

%

11/23/2023

 

$

1,693,548

 

1,662,852

 

1,685,081

 

Total Beverage, Food & Tobacco

 

 

 

 

 

 

 

 

 

 

1,662,852

 

1,685,081

 

Energy: Oil & Gas 2.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bruin E&P Partners, LLC (16) (19)

 

L + 7.38

%

8.70

%

3/7/2023

 

$

13,020,000

 

12,792,871

 

13,182,750

 

Total Energy: Oil & Gas

 

 

 

 

 

 

 

 

 

 

12,792,871

 

13,182,750

 

Healthcare & Pharmaceuticals 5.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TecoStar Holdings, Inc. (16) (19)

 

L + 8.50

%

9.81

%

11/1/2024

 

$

9,471,942

 

9,241,979

 

9,471,942

 

U.S. Anesthesia Partners, Inc. (16) (19)

 

L + 7.25

%

8.49

%

6/23/2025

 

$

16,520,000

 

16,280,734

 

16,520,000

 

Total Healthcare & Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

25,522,713

 

25,991,942

 

Hotel, Gaming & Leisure 0.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NPC International, Inc. (16)

 

L + 7.50

%

8.74

%

4/18/2025

 

$

4,703,667

 

4,681,859

 

4,768,342

 

Total Hotel, Gaming & Leisure

 

 

 

 

 

 

 

 

 

 

4,681,859

 

4,768,342

 

Media: Advertising, Printing & Publishing 1.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Learfield Communications LLC (16)

 

L + 7.25

%

8.49

%

12/2/2024

 

$

5,400,000

 

5,350,769

 

5,413,500

 

Total Media: Advertising, Printing & Publishing

 

 

 

 

 

 

 

 

 

 

5,350,769

 

5,413,500

 

Retail 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CH Hold Corp. (16)

 

L + 7.25

%

8.49

%

2/3/2025

 

$

1,215,470

 

1,209,989

 

1,245,856

 

Total Retail

 

 

 

 

 

 

 

 

 

 

1,209,989

 

1,245,856

 

Services: Business 1.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPE Inmar Acquisition, Inc. (16)

 

L + 8.00

%

9.27

%

5/1/2025

 

$

5,058,410

 

5,001,638

 

5,060,519

 

Total Services: Business

 

 

 

 

 

 

 

 

 

 

5,001,638

 

5,060,519

 

Telecommunications 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Masergy Holdings, Inc. (16)

 

L + 8.50

%

9.83

%

12/16/2024

 

$

778,846

 

771,658

 

788,582

 

Total Telecommunications

 

 

 

 

 

 

 

 

 

 

771,658

 

788,582

 

Total Second lien senior secured loan

 

 

 

 

 

 

 

 

 

 

71,468,611

 

72,894,541

 

Total Corporate Debt

 

 

 

 

 

 

 

 

 

 

459,429,834

 

467,043,081

 

Total Non-Controlled/Non-Affiliate Investments

 

 

 

 

 

 

 

 

 

 

467,907,834

 

475,372,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Controlled Affiliate Investments 1.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Debt 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First lien senior secured loan 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BCC Jetstream Holdings Aviation (On II), LLC (10) (11) (14) (19)

 

 

10.00

%

6/2/2022

 

$

941,502

 

941,502

 

941,502

 

Total Aerospace & Defense

 

 

 

 

 

 

 

 

 

 

941,502

 

941,502

 

Total First lien senior secured loan

 

 

 

 

 

 

 

 

 

 

941,502

 

941,502

 

Total Corporate Debt

 

 

 

 

 

 

 

 

 

 

941,502

 

941,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity 1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Interest 1.4%