10-Q 1 a18-14125_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 June 30, 2018

 

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 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. x

 

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 August 10, 2018, the registrant had 43,702,015.65 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 June 30, 2018 (unaudited) and December 31, 2017

 

4

 

 

 

 

 

 

 

Consolidated Statements of Operations for the three and six months ended June 30, 2018 and 2017 (unaudited)

 

5

 

 

 

 

 

 

 

Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2018 and 2017 (unaudited)

 

6

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017 (unaudited)

 

7

 

 

 

 

 

 

 

Consolidated Schedules of Investments as of June 30, 2018 (unaudited) and December 31, 2017

 

8

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

25

 

 

 

 

 

Item 2.

 

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

 

56

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

81

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

81

 

 

 

 

 

PART II

 

OTHER INFORMATION

 

82

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

82

 

 

 

 

 

Item 1A.

 

Risk Factors

 

82

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

82

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

82

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

82

 

 

 

 

 

Item 5.

 

Other Information

 

82

 

 

 

 

 

Item 6.

 

Exhibits

 

83

 

 

 

 

 

Signatures

 

 

 

84

 

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, 2017 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, 2017. 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

 

 

 

June 30, 2018

 

December 31, 2017

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

Non-controlled/non-affiliate investments (amortized cost of $853,181,573 and $633,645,701, respectively)

 

$

853,283,326

 

$

643,067,956

 

Controlled affiliate investments (amortized cost of $212,954,582 and $187,617,223, respectively)

 

215,852,365

 

188,510,115

 

Cash and cash equivalents

 

125,785,589

 

139,506,289

 

Foreign cash (cost of $15,201,888 and $1,383,845, respectively)

 

15,204,499

 

1,411,855

 

Collateral on forward currency exchange contracts

 

820,000

 

4,421,968

 

Deferred financing costs

 

5,097,608

 

5,808,726

 

Interest receivable on investments

 

3,936,470

 

2,888,847

 

Prepaid insurance

 

48,535

 

137,785

 

Receivable for sales and paydowns of investments

 

3,372,539

 

2,497,769

 

Distribution receivable

 

305,250

 

 

Unrealized appreciation on forward currency exchange contracts

 

4,089,279

 

 

Dividend receivable

 

5,390,500

 

 

Total Assets

 

$

1,233,185,960

 

$

988,251,310

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Revolving credit facilities

 

$

446,519,000

 

$

451,000,000

 

Interest payable

 

990,554

 

815,402

 

Payable for investments purchased

 

13,279,088

 

14,814,984

 

Unrealized depreciation on forward currency exchange contracts

 

 

3,504,814

 

Base management fee payable

 

1,878,062

 

1,244,033

 

Incentive fee payable

 

1,312,528

 

1,017,919

 

Accounts payable and accrued expenses

 

1,166,268

 

1,143,946

 

Excise tax payable

 

 

4,882

 

Distributions payable

 

13,484,328

 

7,742,502

 

Total Liabilities

 

478,629,828

 

481,288,482

 

 

 

 

 

 

 

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 June 30, 2018 and December 31, 2017, respectively

 

$

 

$

 

Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized, 37,456,468 and 24,975,812 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively

 

37,457

 

24,976

 

Paid in capital in excess of par value

 

757,681,897

 

503,533,321

 

Accumulated undistributed net investment income (loss)

 

(5,306,932

)

(3,469,772

)

Accumulated undistributed net realized gain (loss)

 

(4,947,853

)

35,676

 

Net unrealized appreciation

 

7,091,563

 

6,838,627

 

Total Net Assets

 

754,556,132

 

506,962,828

 

Total Liabilities and Total Net assets

 

$

1,233,185,960

 

$

988,251,310

 

 

 

 

 

 

 

Net asset value per share

 

$

20.14

 

$

20.30

 

 

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 June 30,

 

For the Three Months
Ended June 30,

 

For the Six Months
Ended June 30,

 

For the Six Months
Ended June 30,

 

 

 

2018

 

2017

 

2018

 

2017

 

Income

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Interest from investments

 

$

15,820,982

 

$

4,432,338

 

$

28,436,279

 

$

6,674,754

 

Other income

 

94,201

 

88,988

 

208,205

 

88,988

 

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

 

15,915,183

 

4,521,326

 

28,644,484

 

6,763,742

 

Investment income from controlled affiliate investments:

 

 

 

 

 

 

 

 

 

Interest from investments

 

77,339

 

7,846

 

98,627

 

7,846

 

Dividend income

 

5,432,984

 

 

10,140,962

 

 

Total investment income from controlled affiliate investments

 

5,510,323

 

7,846

 

10,239,589

 

7,846

 

Total investment income

 

21,425,506

 

4,529,172

 

38,884,073

 

6,771,588

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Interest and debt financing expenses

 

$

5,325,222

 

$

202,431

 

$

9,614,119

 

$

397,908

 

Amortization of deferred offering costs

 

 

104,998

 

 

208,843

 

Base management fee

 

1,878,062

 

582,131

 

3,501,843

 

848,715

 

Incentive fee

 

911,103

 

116,392

 

2,915,651

 

209,820

 

Professional fees

 

316,290

 

486,168

 

839,967

 

899,707

 

Directors fees

 

66,911

 

68,250

 

135,161

 

136,062

 

Other general and administrative expenses

 

449,718

 

174,412

 

624,410

 

286,491

 

Total expenses before incentive fee waivers

 

8,947,306

 

1,734,782

 

17,631,151

 

2,987,546

 

Incentive fee waiver

 

(1,004,198

)

 

(1,004,198

)

 

Total expenses, net of incentive fee waivers

 

7,943,108

 

1,734,782

 

16,626,953

 

2,987,546

 

Net investment income before taxes

 

13,482,398

 

2,794,390

 

22,257,120

 

3,784,042

 

Excise tax expense

 

 

 

309

 

 

Net investment income after taxes

 

13,482,398

 

2,794,390

 

22,256,811

 

3,784,042

 

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gains (losses)

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on non-controlled/non-affiliate investments

 

(2,103,579

)

(87,531

)

(1,845,877

)

32,601

 

Net realized gain (loss) on foreign currency transactions

 

(543,658

)

516,344

 

(264,513

)

581,045

 

Net realized gain (loss) on forward currency exchange contracts

 

444,246

 

(220,006

)

(2,873,139

)

(220,006

)

Net change in unrealized depreciation on foreign currency translation

 

(8,202

)

(424,018

)

(25,546

)

(439,082

)

Net change in unrealized appreciation (depreciation) on forward currency exchange contracts

 

6,652,602

 

(1,147,554

)

7,594,093

 

(1,409,238

)

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

 

(11,896,356

)

2,138,706

 

(9,320,502

)

2,853,478

 

Net change in unrealized appreciation on controlled affiliate investments

 

139,662

 

 

2,004,891

 

 

Total net gains (losses)

 

(7,315,285

)

775,941

 

(4,730,593

)

1,398,798

 

 

 

 

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

6,167,113

 

$

3,570,331

 

$

17,526,218

 

$

5,182,840

 

 

 

 

 

 

 

 

 

 

 

Per Common Share Data

 

 

 

 

 

 

 

 

 

Basic and diluted net investment income per common share

 

$

0.38

 

$

0.16

 

$

0.69

 

$

0.27

 

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

 

$

0.17

 

$

0.21

 

$

0.54

 

$

0.37

 

Basic and diluted weighted average common shares outstanding

 

35,379,436

 

17,221,607

 

32,273,765

 

14,068,549

 

 

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 Six Months
Ended June 30,

 

For the Six Months
Ended June 30,

 

 

 

2018

 

2017

 

 

 

 

 

 

 

Operations:

 

 

 

 

 

Net investment income

 

$

22,256,811

 

$

3,784,042

 

Net realized gain (loss)

 

(4,983,529

)

393,640

 

Net change in unrealized appreciation

 

252,936

 

1,005,158

 

Net increase in net assets resulting from operations

 

17,526,218

 

5,182,840

 

Stockholder distributions:

 

 

 

 

 

Distributions from net investment income

 

(24,093,971

)

(3,914,024

)

Net decrease in net assets resulting from stockholder distributions

 

(24,093,971

)

(3,914,024

)

Capital share transactions:

 

 

 

 

 

Issuance of common stock

 

250,975,412

 

392,735,246

 

Reinvestment of stockholder distributions

 

3,185,645

 

115,824

 

Net increase in net assets resulting from capital share transactions

 

254,161,057

 

392,851,070

 

 

 

 

 

 

 

Total increase in net assets

 

247,593,304

 

394,119,886

 

Net assets at beginning of period

 

506,962,828

 

110,344,258

 

Net assets at end of period

 

$

754,556,132

 

$

504,464,144

 

 

 

 

 

 

 

Net asset value per common share

 

$

20.14

 

$

20.25

 

Common stock outstanding at end of period

 

37,456,468

 

24,908,835

 

 

See Notes to Consolidated Financial Statements

 

6



Table of Contents

 

Bain Capital Specialty Finance, Inc.

 

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

For the Six Months
Ended June 30,

 

For the Six Months
Ended June 30,

 

 

 

2018

 

2017

 

Cash flows from operating activities

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

17,526,218

 

$

5,182,840

 

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

 

 

 

 

 

Purchases of investments

 

(375,022,354

)

(305,271,134

)

Proceeds from principal payments and sales of investments

 

126,574,268

 

13,380,378

 

Net realized (gain) loss from investments

 

1,845,877

 

(32,601

)

Net realized loss on foreign currency transactions

 

264,513

 

 

Net change in unrealized (appreciation) depreciation on forward currency exchange contracts

 

(7,594,093

)

1,409,238

 

Net change in unrealized appreciation (depreciation) on investments

 

7,315,611

 

(2,853,478

)

Net change in unrealized appreciation on foreign currency translation

 

25,546

 

439,082

 

Accretion of discounts and amortization of premiums

 

(709,845

)

(305,669

)

Amortization of deferred financing costs and upfront commitment fees

 

711,118

 

181,459

 

Amortization of deferred offering costs

 

 

208,843

 

Changes in operating assets and liabilities:

 

 

 

 

 

Collateral on forward currency exchange contracts

 

3,601,968

 

(2,020,000

)

Interest receivable on investments

 

(1,047,623

)

(843,851

)

Prepaid insurance

 

89,250

 

93,172

 

Distribution receivable

 

(305,250

)

 

Dividend receivable

 

(5,390,500

)

 

Other assets

 

 

5,723

 

Interest payable

 

175,152

 

87,426

 

Base management fee payable

 

634,029

 

403,927

 

Incentive fee payable

 

294,609

 

209,821

 

Accounts payable and accrued expenses

 

22,322

 

283,296

 

Excise tax payable

 

(4,882

)

 

Net cash used in operating activities

 

(230,994,066

)

(289,441,528

)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Borrowings on revolving credit facilities

 

144,000,000

 

94,689,940

 

Repayments on revolving credit facilities

 

(148,481,000

)

(77,959,900

)

Proceeds from issuance of common stock

 

250,975,412

 

227,513,324

 

Stockholder distributions paid

 

(15,166,500

)

(1,140,591

)

Net cash provided by financing activities

 

231,327,912

 

243,102,773

 

 

 

 

 

 

 

Net increase (decrease) in cash, foreign cash and cash equivalents

 

333,846

 

(46,338,755

)

Effect of foreign currency exchange rates

 

(261,902

)

103

 

Cash, foreign cash and cash equivalents, beginning of period

 

140,918,144

 

66,732,154

 

Cash, foreign cash and cash equivalents, end of period

 

$

140,990,088

 

$

20,393,502

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Cash interest paid during the period

 

$

8,727,849

 

$

212,175

 

Cash paid for excise taxes during the period

 

$

5,191

 

$

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

Reinvestment of stockholder distributions

 

$

3,185,645

 

$

115,824

 

 

See Notes to Consolidated Financial Statements

 

7



Table of Contents

 

Bain Capital Specialty Finance, Inc.

 

Consolidated Schedule of Investments

As of June 30, 2018

(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 158.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments 141.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Controlled/Non-Affiliate Investments 113.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Fixed Income 3.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Bond 3.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Beverage, Food & Tobacco 1.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Hearthside Food Solutions, LLC

 

 

8.50

%

6/1/2026

 

$

10,000,000

 

9,782,623

 

9,675,000

 

Total Beverage, Food & Tobacco

 

 

 

 

 

 

 

 

 

9,782,623

 

9,675,000

 

Consumer Goods: Non-Durable 1.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

Kronos Acquisition Holdings Inc.

 

 

9.00

%

8/15/2023

 

$

10,000,000

 

9,301,439

 

9,025,000

 

Total Consumer Goods: Non-Durable

 

 

 

 

 

 

 

 

 

9,301,439

 

9,025,000

 

Utilities: Electric 1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

CSVC Acquisition Corp

 

 

7.75

%

6/15/2025

 

$

13,478,000

 

$

12,869,999

 

$

10,984,570

 

Total Utilities: Electric

 

 

 

 

 

 

 

 

 

12,869,999

 

10,984,570

 

Total Corporate Bond

 

 

 

 

 

 

 

 

 

$

31,954,061

 

$

29,684,570

 

Total Corporate Fixed Income

 

 

 

 

 

 

 

 

 

$

31,954,061

 

$

29,684,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Debt 108.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Delayed Draw Term Loan 0.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Equipment 0.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Endries International, Inc. (3) (15) (19)

 

P+3.75%

 

8.75

%

6/1/2023

 

$

2,525,067

 

2,484,790

 

2,525,067

 

Total Capital Equipment

 

 

 

 

 

 

 

 

 

2,484,790

 

2,525,067

 

Construction & Building 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Chase Industries, Inc. (2) (3) (5) (15) (19) (21)

 

 

 

5/12/2025

 

$

 

(18,451

)

(9,360

)

Total Construction & Building

 

 

 

 

 

 

 

 

 

(18,451

)

(9,360

)

Media: Diversified & Production 0.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

International Entertainment Investments Limited (3) (6) (18) (19)

 

GBP LIBOR+3.75%

 

4.52

%

2/28/2022

 

£

599,178

 

757,979

 

791,334

 

Total Media: Diversified & Production

 

 

 

 

 

 

 

 

 

757,979

 

791,334

 

Services: Business 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Sovos Compliance, LLC (2) (3) (15) (19)

 

 

 

3/1/2022

 

$

 

 

(48,387

)

Total Services: Business

 

 

 

 

 

 

 

 

 

 

(48,387

)

Telecommunications 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Horizon Telcom, Inc. (2) (3) (5) (15) (19) (21)

 

 

 

6/15/2023

 

$

 

(21,538

)

(21,724

)

Total Telecommunications

 

 

 

 

 

 

 

 

 

(21,538

)

(21,724

)

Transportation: Cargo 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

ENC Holding Corporation (3) (5) (18) (21)

 

 

 

5/30/2025

 

$

 

(1,202

)

1,503

 

Transportation: Cargo

 

 

 

 

 

 

 

 

 

(1,202

)

1,503

 

Total Delayed Draw Term Loan

 

 

 

 

 

 

 

 

 

$

3,201,578

 

$

3,238,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Last Out Term Loan 3.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Environmental Industries 2.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adler & Allan Group Limited (6) (17) (19) (21) (22)

 

GBP LIBOR+7.50%

 

8.21

%

6/30/2024

 

£

15,141,463

 

19,083,886

 

18,797,490

 

Total Environmental Industries

 

 

 

 

 

 

 

 

 

19,083,886

 

18,797,490

 

Healthcare & Pharmaceuticals 1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical Innovations, LLC (15) (19) (21) (22)

 

L+6.00%

 

8.09

%

10/17/2023

 

$

10,313,690

 

10,101,649

 

10,287,905

 

Total Healthcare & Pharmaceuticals

 

 

 

 

 

 

 

 

 

10,101,649

 

10,287,905

 

Total First Lien Last Out Term Loan

 

 

 

 

 

 

 

 

 

$

29,185,535

 

$

29,085,395

 

 

8



Table of Contents

 

First Lien Senior Secured Loan 81.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense 2.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Novetta, LLC (15)

 

L+5.00%

 

7.10

%

10/17/2022

 

$

3,834,373

 

3,765,171

 

3,728,928

 

Salient CRGT, Inc. (15) (19) (21)

 

L+5.75%

 

7.84

%

2/28/2022

 

$

3,592,258

 

3,536,727

 

3,646,142

 

StandardAero Aviation Holdings, Inc. (15) (21)

 

L+3.75%

 

5.84

%

7/7/2022

 

$

9,873,096

 

9,966,658

 

9,907,652

 

Total Aerospace & Defense

 

 

 

 

 

 

 

 

 

17,268,556

 

17,282,722

 

Automotive 2.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

CST Buyer Company (15) (19) (21)

 

L+5.00%

 

7.45

%

3/1/2023

 

$

9,456,999

 

9,341,101

 

9,504,284

 

OEConnection LLC (15) (21)

 

L+4.00%

 

6.10

%

11/22/2024

 

$

8,134,900

 

8,100,185

 

8,134,900

 

Total Automotive

 

 

 

 

 

 

 

 

 

17,441,286

 

17,639,184

 

Beverage, Food & Tobacco 0.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant Technologies, Inc. (15) (21) (24)

 

L+4.75%

 

7.07

%

11/23/2022

 

$

5,240,121

 

5,199,548

 

5,233,571

 

Total Beverage, Food & Tobacco

 

 

 

 

 

 

 

 

 

5,199,548

 

5,233,571

 

Capital Equipment 3.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Dorner Manufacturing Corp. (15) (19) (21)

 

L+5.75%

 

7.84

%

3/15/2023

 

$

8,247,114

 

8,076,942

 

8,288,350

 

DXP Enterprises, Inc. (6) (15) (21)

 

L+4.75%

 

6.84

%

8/29/2023

 

$

5,204,133

 

5,158,848

 

5,236,659

 

Endries International, Inc. (15) (19) (21)

 

L+4.75%

 

6.80

%

6/1/2023

 

$

6,507,536

 

6,425,737

 

6,507,536

 

Wilsonart LLC (15) (21)

 

L+3.25%

 

5.59

%

12/19/2023

 

$

5,446,241

 

5,500,414

 

5,447,602

 

Total Capital Equipment

 

 

 

 

 

 

 

 

 

25,161,941

 

25,480,147

 

Chemicals, Plastics & Rubber 1.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

ASP Chromaflo Intermediate Holdings, Inc. (15) (21)

 

L+3.50%

 

5.59

%

11/20/2023

 

$

507,414

 

505,454

 

509,634

 

ASP Chromaflo Intermediate Holdings, Inc. (6) (15) (21)

 

L+3.50%

 

5.59

%

11/20/2023

 

$

659,801

 

657,252

 

663,925

 

Niacet b.v. (6) (15) (19) (21)

 

EURIBOR+4.50%

 

5.50

%

2/1/2024

 

3,792,044

 

4,056,726

 

4,452,777

 

Niacet Corporation (15) (19) (21)

 

L+4.50%

 

6.59

%

2/1/2024

 

$

2,181,126

 

2,163,241

 

2,192,032

 

Total Chemicals, Plastics & Rubber

 

 

 

 

 

 

 

 

 

7,382,673

 

7,818,368

 

Construction & Building 3.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Bolt Infrastructure Merger Sub, Inc. (15) (21)

 

L+3.50%

 

5.59

%

6/21/2024

 

$

2,683,944

 

2,672,194

 

2,677,234

 

Chase Industries, Inc. (15) (19) (21)

 

L+4.00%

 

6.36

%

5/11/2025

 

$

11,980,952

 

11,921,224

 

11,951,000

 

Regan Development Holdings Limited (6) (17) (19)

 

EURIBOR+7.00%

 

7.50

%

4/18/2022

 

2,825,002

 

3,077,840

 

3,300,732

 

Regan Development Holdings Limited (6) (17) (19)

 

EURIBOR+7.00%

 

7.50

%

4/18/2022

 

8,574,506

 

9,183,741

 

10,018,452

 

Regan Development Holdings Limited (6) (17) (19)

 

EURIBOR+7.00%

 

7.50

%

4/18/2022

 

915,945

 

1,040,239

 

1,070,190

 

Total Construction & Building

 

 

 

 

 

 

 

 

 

27,895,238

 

29,017,608

 

Consumer Goods: Durable 2.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

New Milani Group LLC (15) (19) (21)

 

L+4.25%

 

6.28

%

6/6/2024

 

$

17,360,000

 

17,187,266

 

17,186,400

 

Total Consumer Goods: Durable

 

 

 

 

 

 

 

 

 

17,187,266

 

17,186,400

 

Consumer Goods: Non-Durable 2.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

FineLine Technologies, Inc. (15) (19) (21)

 

L+4.75%

 

6.85

%

11/2/2022

 

$

14,537,817

 

14,290,303

 

14,537,817

 

Kronos Acquisition Holdings Inc. (15) (21)

 

L+4.00%

 

5.98

%

5/15/2023

 

$

3,181,476

 

3,174,049

 

3,172,861

 

MND Holdings III Corp (15) (19) (21)

 

L+3.50%

 

5.83

%

6/19/2024

 

$

3,811,430

 

3,796,079

 

3,825,723

 

Total Consumer Goods: Non-Durable

 

 

 

 

 

 

 

 

 

21,260,431

 

21,536,401

 

Containers, Packaging & Glass 5.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

BWAY Holding Company (18) (21)

 

L+3.25%

 

5.59

%

4/3/2024

 

$

12,877,444

 

12,872,636

 

12,905,619

 

CSP Technologies North America, LLC (15) (19) (21)

 

L+5.25%

 

7.58

%

1/28/2022

 

$

12,222,275

 

12,222,275

 

12,283,386

 

Terminator Bidco AS (6) (18) (19) (21)

 

L+5.00%

 

7.33

%

5/22/2022

 

$

15,100,000

 

14,762,592

 

14,760,250

 

Total Containers, Packaging & Glass

 

 

 

 

 

 

 

 

 

39,857,503

 

39,949,255

 

Energy: Oil & Gas 4.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Blackbrush Oil & Gas, L.P. (15) (19) (21)

 

L+8.00%

 

10.50

%

2/9/2024

 

$

31,200,000

 

30,623,727

 

30,731,999

 

Total Energy: Oil & Gas

 

 

 

 

 

 

 

 

 

30,623,727

 

30,731,999

 

Healthcare & Pharmaceuticals 3.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Datix Bidco Limited (6) (18) (19) (21)

 

BBSW+4.50%

 

6.65

%

4/28/2025

 

AUD

4,211,615

 

3,195,318

 

3,056,327

 

Drive DeVilbiss (15) (21)

 

L+5.50%

 

7.83

%

1/3/2023

 

$

6,627,994

 

6,152,646

 

6,081,185

 

 

9



Table of Contents

 

Great Expressions Dental Centers PC (15) (19) (21)

 

L+4.75%

 

6.84

%

9/28/2023

 

$

8,023,095

 

7,929,154

 

7,902,749

 

Island Medical Management Holdings, LLC (15) (19) (21)

 

L+6.50%

 

8.59

%

9/1/2022

 

$

9,321,091

 

9,205,810

 

8,668,615

 

U.S. Anesthesia Partners, Inc. (15) (21)

 

L+3.00%

 

5.09

%

6/24/2024

 

$

1,175,426

 

1,171,448

 

1,173,957

 

Total Healthcare & Pharmaceuticals

 

 

 

 

 

 

 

 

 

27,654,376

 

26,882,833

 

High Tech Industries 17.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

CMI Marketing Inc. (15) (19) (21)

 

L+5.00%

 

7.33

%

5/23/2024

 

$

15,488,000

 

15,334,349

 

15,333,120

 

Lighthouse Network, LLC (15) (21)

 

L+4.50%

 

6.59

%

12/2/2024

 

$

16,169,636

 

16,099,734

 

16,179,742

 

Netsmart Technologies, Inc. (15) (21)

 

L+4.50%

 

6.57

%

4/19/2023

 

$

16,084,141

 

16,115,768

 

16,154,509

 

Netsmart Technologies, Inc.(15) (21)

 

L+3.75%

 

6.11

%

4/19/2023

 

$

5,649,380

 

5,649,380

 

5,677,627

 

Park Place Technologies (15) (21)

 

L+4.00%

 

6.09

%

3/31/2025

 

$

9,873,651

 

9,836,952

 

9,892,164

 

Qlik Technologies (15) (21)

 

L+3.50%

 

5.99

%

4/26/2024

 

$

17,827,444

 

17,782,271

 

17,749,448

 

SolarWinds Holdings, Inc. (18) (21)

 

L+3.00%

 

5.09

%

2/5/2024

 

$

14,837,656

 

14,928,925

 

14,872,688

 

VPARK BIDCO AB (6) (16) (19) (21)

 

CIBOR+5.00%

 

5.75

%

3/8/2025

 

DKK

56,999,385

 

9,120,683

 

8,938,696

 

VPARK BIDCO AB (6) (16) (19) (21)

 

NIBOR+5.00%

 

5.81

%

3/8/2025

 

NOK

74,019,870

 

9,170,912

 

9,085,091

 

Zywave, Inc. (15) (19) (21)

 

L+5.00%

 

7.34

%

11/17/2022

 

$

17,582,974

 

17,455,733

 

17,582,974

 

Total High Tech Industries

 

 

 

 

 

 

 

 

 

131,494,707

 

131,466,059

 

Hotel, Gaming & Leisure 6.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Aimbridge Hospitality LP (15) (19) (21)

 

L+5.00%

 

7.09

%

6/22/2022

 

$

25,648,038

 

25,276,858

 

25,648,038

 

Captain D’s LLC (15) (19) (21)

 

L+4.50%

 

6.57

%

12/15/2023

 

$

13,456,424

 

13,330,993

 

13,355,501

 

Quidditch Acquisition, Inc. (15) (19) (21)

 

L+7.00%

 

9.09

%

3/21/2025

 

$

7,970,961

 

7,816,063

 

8,050,670

 

Tacala Investment Corp. (18) (21)

 

L+3.25%

 

5.23

%

1/31/2025

 

$

1,516,498

 

1,512,870

 

1,511,759

 

Total Hotel, Gaming & Leisure

 

 

 

 

 

 

 

 

 

47,936,784

 

48,565,968

 

Insurance 1.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Alliant Holdings Intermediate, LLC (18) (21)

 

L+3.00%

 

5.05

%

5/9/2025

 

$

11,668,880

 

11,731,599

 

11,609,859

 

Wink Holdco, Inc. (15) (21)

 

L+3.00%

 

5.09

%

12/2/2024

 

$

2,606,076

 

2,600,931

 

2,599,545

 

Total Insurance

 

 

 

 

 

 

 

 

 

14,332,530

 

14,209,404

 

Media: Broadcasting & Subscription 2.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Micro Holding Corp. (18) (21)

 

L+3.75%

 

5.84

%

9/13/2024

 

$

17,029,874

 

16,996,290

 

17,047,619

 

Total Media: Broadcasting & Subscription

 

 

 

 

 

 

 

 

 

16,996,290

 

17,047,619

 

Media: Diversified & Production 1.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

International Entertainment Investments Limited (6) (18) (19) (21)

 

GBP LIBOR+3.75%

 

4.52

%

5/31/2022

 

£

7,673,114

 

9,322,696

 

10,133,882

 

Total Media: Diversified & Production

 

 

 

 

 

 

 

 

 

9,322,696

 

10,133,882

 

Real Estate 1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Spectre (Carrisbrook House) Limited (6) (15) (19)

 

EURIBOR+7.50%

 

8.50

%

8/9/2021

 

9,300,000

 

10,682,903

 

10,594,467

 

Total Real Estate

 

 

 

 

 

 

 

 

 

10,682,903

 

10,594,467

 

Retail 2.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

CH Hold Corp. (15) (21)

 

L+3.00%

 

5.09

%

2/1/2024

 

$

1,506,006

 

1,503,356

 

1,507,418

 

CVS Holdings I, LP (15) (21)

 

L+3.00%

 

5.10

%

2/6/2025

 

$

4,987,500

 

4,966,648

 

4,956,328

 

Eyemart Express LLC (15) (21)

 

L+3.00%

 

5.06

%

8/5/2024

 

$

11,563,940

 

11,608,804

 

11,632,606

 

Total Retail

 

 

 

 

 

 

 

 

 

18,078,808

 

18,096,352

 

Services: Business 7.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Sales & Marketing Inc. (15) (21)

 

L+3.25%

 

5.34

%

7/23/2021

 

$

15,825,403

 

15,544,309

 

15,063,806

 

Comet Bidco Limited (6) (18)

 

GBP LIBOR+5.25%

 

5.76

%

9/30/2024

 

£

6,260,870

 

8,042,851

 

8,110,244

 

Genuine Financial Holdings LLC (15) (19) (21)

 

L+4.75%

 

7.13

%

1/26/2023

 

$

10,416,497

 

10,329,082

 

10,416,497

 

Lakeland Tours, LLC (15) (21)

 

L+4.00%

 

6.34

%

12/16/2024

 

$

2,446,270

 

2,440,225

 

2,452,386

 

New Insight Holdings, Inc. (15) (21)

 

L+5.50%

 

7.86

%

12/20/2024

 

$

10,620,105

 

10,115,512

 

10,460,803

 

Sovos Compliance, LLC (15) (19) (21)

 

L+6.00%

 

8.09

%

3/1/2022

 

$

8,644,352

 

8,571,706

 

8,557,909

 

Travel Leaders Group, LLC (18) (21)

 

L+4.50%

 

7.00

%

1/25/2024

 

$

292,619

 

291,515

 

294,448

 

Total Services: Business

 

 

 

 

 

 

 

 

 

55,335,200

 

55,356,093

 

Services: Consumer 0.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Trident LS Merger Sub Corp (18) (21)

 

L+3.25%

 

5.23

%

5/1/2025

 

$

4,562,044

 

4,541,851

 

4,594,836

 

Total Services: Consumer

 

 

 

 

 

 

 

 

 

4,541,851

 

4,594,836

 

 

10



Table of Contents

 

Telecommunications 3.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Horizon Telcom, Inc. (15) (19) (21)

 

L+4.50%

 

6.59

%

6/15/2023

 

$

13,903,448

 

13,731,463

 

13,729,655

 

Masergy Holdings, Inc. (15) (21)

 

L+3.25%

 

5.58

%

12/15/2023

 

$

689,615

 

686,955

 

690,765

 

Polycom, Inc. (15) (21)

 

L+5.25%

 

7.34

%

9/27/2023

 

$

11,456,616

 

11,326,932

 

11,478,097

 

Total Telecommunications

 

 

 

 

 

 

 

 

 

25,745,350

 

25,898,517

 

Transportation: Cargo 2.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

ENC Holding Corporation (18) (21)

 

L+4.25%

 

6.58

%

5/30/2025

 

$

7,933,540

 

7,913,706

 

7,958,332

 

PS HoldCo, LLC (15) (21)

 

L+5.25%

 

7.30

%

3/13/2025

 

$

8,681,818

 

8,640,687

 

8,749,641

 

Total Transportation: Cargo

 

 

 

 

 

 

 

 

 

16,554,393

 

16,707,973

 

Wholesale 2.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

American Tire Distributors Inc. (15) (21)

 

L+4.25%

 

6.34

%

9/1/2021

 

$

7,479,579

 

7,517,199

 

4,903,799

 

PT Holdings, LLC (15) (21)

 

L+4.00%

 

6.33

%

12/9/2024

 

$

14,988,930

 

14,933,353

 

14,988,930

 

Total Wholesale

 

 

 

 

 

 

 

 

 

22,450,552

 

19,892,729

 

Total First Lien Senior Secured Loan

 

 

 

 

 

 

 

 

 

$

610,404,609

 

$

611,322,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolver 0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

API Technologies Corp. (2) (3) (5) (15) (19)

 

 

 

4/22/2024

 

$

 

(50,588

)

(52,290

)

Total Aerospace & Defense

 

 

 

 

 

 

 

 

 

(50,588

)

(52,290

)

Automotive 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

CST Buyer Company (3) (5) (15) (19)

 

 

 

3/1/2023

 

$

 

(10,479

)

4,487

 

Total Automotive

 

 

 

 

 

 

 

 

 

(10,479

)

4,487

 

Banking 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tidel Engineering, L.P. (3) (15) (19)

 

 

 

3/1/2023

 

$

 

 

 

Total Banking

 

 

 

 

 

 

 

 

 

 

 

Capital Equipment 0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

Dorner Manufacturing Corp. (3) (15) (19)

 

L+5.75%

 

7.84

%

3/15/2023

 

$

65,933

 

44,244

 

68,680

 

Endries International, Inc. (3) (15) (19)

 

P+3.75%

 

8.75

%

6/1/2022

 

$

722,492

 

683,837

 

722,492

 

Winchester Electronics Corporation (3) (15) (18) (19)

 

L+5.00%

 

7.09

%

6/30/2021

 

$

850,020

 

850,020

 

850,020

 

Total Capital Equipment

 

 

 

 

 

 

 

 

 

1,578,101

 

1,641,192

 

Chemicals, Plastics & Rubber 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

AP Plastics Group, LLC (3) (15) (19)

 

 

 

8/1/2021

 

$

 

 

 

PRCC Holdings, Inc. (3) (15) (19)

 

 

 

2/1/2021

 

$

 

 

 

Total Chemicals, Plastics & Rubber

 

 

 

 

 

 

 

 

 

 

 

Construction & Building 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Stanton Carpet Corp. (3) (15) (19)

 

 

 

11/21/2022

 

$

 

 

 

Total Construction & Building