10-Q 1 a19-9285_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 March 31, 2019

 

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
(State or other jurisdiction of
incorporation or organization)

 

81-2878769
(I.R.S. Employer
Identification No.)

 

 

 

200 Clarendon Street, 37th Floor
Boston, MA

(Address of principal executive offices)

 

02116
(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 every Interactive Data File required to be submitted 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 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, 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 12b-2 of the Exchange Act.

 

Large accelerated filer o

 

Accelerated filer o

Non-accelerated filer x

 

Smaller reporting companyo

 

 

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

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.001 per share

 

BCSF

 

New York Stock Exchange

 

As of May 8, 2019, the registrant had 51,649,812.27 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 March 31, 2019 (unaudited) and December 31, 2018

4

 

 

 

 

Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018 (unaudited)

5

 

 

 

 

Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2019 and 2018 (unaudited)

6

 

 

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018 (unaudited)

7

 

 

 

 

Consolidated Schedules of Investments as of March 31, 2019 (unaudited) and December 31, 2018

8

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

26

 

 

 

Item 2.

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

61

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

89

 

 

 

Item 4.

Controls and Procedures

89

 

 

 

PART II

OTHER INFORMATION

91

 

 

 

Item 1.

Legal Proceedings

91

 

 

 

Item 1A.

Risk Factors

91

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

91

 

 

 

Item 3.

Defaults Upon Senior Securities

91

 

 

 

Item 4.

Mine Safety Disclosures

91

 

 

 

Item 5.

Other Information

91

 

 

 

Item 6.

Exhibits

92

 

 

 

Signatures

 

94

 

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, 2018 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, 2018. 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

 

 

 

March 31, 2019

 

December 31, 2018

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

Non-controlled/non-affiliate investments (amortized cost of $1,481,673,496 and $1,449,749,445, respectively)

 

$

1,469,128,402

 

$

1,422,837,431

 

Controlled affiliate investment (amortized cost of $348,095,945 and $296,647,530, respectively)

 

354,091,548

 

298,248,240

 

Non-controlled/affiliate investment (amortized cost of $6,720,000 and $6,720,000, respectively)

 

6,720,000

 

6,720,000

 

Cash and cash equivalents

 

79,140,512

 

14,692,877

 

Foreign cash (cost of $1,657,573 and $588,622, respectively)

 

1,478,627

 

591,113

 

Restricted Cash

 

14,009,400

 

17,986,541

 

Collateral on forward currency exchange contracts

 

403,790

 

3,790

 

Deferred financing costs

 

3,872,902

 

4,017,802

 

Interest receivable on investments

 

7,973,786

 

6,250,621

 

Prepaid insurance

 

 

1,517

 

Receivable for sales and paydowns of investments

 

40,235,589

 

1,633,739

 

Other assets

 

3,701,001

 

 

Unrealized appreciation on forward currency exchange contracts

 

6,038,508

 

9,321,758

 

Dividend receivable

 

9,150,109

 

8,708,670

 

Total Assets

 

$

1,995,944,174

 

$

1,791,014,099

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Revolving credit facilities

 

$

551,194,090

 

$

271,264,902

 

2018-1 Notes (net of unamortized debt issuance costs of $1,997,725 and $2,040,320, respectively)

 

363,702,275

 

363,659,680

 

Offering costs payable

 

1,730,959

 

1,819,892

 

Interest payable

 

5,095,949

 

4,835,339

 

Payable for investments purchased

 

24,370,068

 

119,165,882

 

Base management fee payable

 

4,500,941

 

2,950,412

 

Incentive fee payable

 

2,103,341

 

3,300,398

 

Accounts payable and accrued expenses

 

2,304,869

 

1,280,770

 

Distributions payable

 

21,107,677

 

21,107,677

 

Total Liabilities

 

976,110,169

 

789,384,952

 

 

 

 

 

 

 

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 March 31, 2019 and December 31, 2018, respectively

 

$

 

$

 

Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized, 51,482,137 and 51,482,137 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively

 

51,482

 

51,482

 

Paid in capital in excess of par value

 

1,034,255,352

 

1,034,255,352

 

Total distributable earnings (loss)

 

(14,472,829

)

(32,677,687

)

Total Net Assets

 

1,019,834,005

 

1,001,629,147

 

Total Liabilities and Total Net assets

 

$

1,995,944,174

 

$

1,791,014,099

 

Net asset value per share

 

$

19.81

 

$

19.46

 

 

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
March 31,

 

For the Three Months Ended
March 31,

 

 

 

2019

 

2018

 

Income

 

 

 

 

 

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

 

 

 

 

 

Interest from investments

 

$

30,387,622

 

$

12,615,297

 

Dividend income

 

15,533

 

 

Other income

 

21,731

 

114,004

 

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

 

30,424,886

 

12,729,301

 

Investment income from controlled affiliate investments:

 

 

 

 

 

Interest from investments

 

107,293

 

21,288

 

Dividend income

 

9,357,644

 

4,707,978

 

Total investment income from controlled affiliate investments

 

9,464,937

 

4,729,266

 

Total investment income

 

39,889,823

 

17,458,567

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

Interest and debt financing expenses

 

$

10,545,687

 

$

4,288,897

 

Base management fee

 

6,751,412

 

3,247,562

 

Incentive fee

 

4,085,628

 

2,004,548

 

Professional fees

 

550,432

 

523,677

 

Directors fees

 

105,140

 

68,250

 

Other general and administrative expenses

 

841,177

 

174,692

 

Total expenses before fee waivers

 

22,879,476

 

10,307,626

 

Base management fee waiver

 

(2,250,471

)

(1,623,781

)

Incentive fee waiver

 

(1,982,287

)

 

Total expenses, net of fee waivers

 

18,646,718

 

8,683,845

 

Net investment income before taxes

 

21,243,105

 

8,774,722

 

Excise tax expense

 

 

309

 

Net investment income after taxes

 

21,243,105

 

8,774,413

 

 

 

 

 

 

 

Net realized and unrealized gains (losses)

 

 

 

 

 

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

 

(849,933

)

257,702

 

Net realized gain on foreign currency transactions

 

5,885

 

279,145

 

Net realized gain (loss) on forward currency exchange contracts

 

3,633,076

 

(3,317,385

)

Net change in unrealized depreciation on foreign currency translation

 

(198,161

)

(17,344

)

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

 

(3,283,250

)

941,491

 

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

 

14,366,920

 

2,575,854

 

Net change in unrealized appreciation on controlled affiliate investments

 

4,394,893

 

1,865,229

 

Total net gains

 

18,069,430

 

2,584,692

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

39,312,535

 

$

11,359,105

 

 

 

 

 

 

 

Per Common Share Data

 

 

 

 

 

Basic and diluted net investment income per common share

 

$

0.41

 

$

0.30

 

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

 

$

0.76

 

$

0.39

 

Basic and diluted weighted average common shares outstanding

 

51,482,137

 

29,133,586

 

 

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 Three Months
Ended March 31,

 

For the Three Months
Ended March 31,

 

 

 

2019

 

2018

 

 

 

 

 

 

 

Operations:

 

 

 

 

 

Net investment income

 

$

21,243,105

 

$

8,774,413

 

Net realized gain (loss)

 

2,789,028

 

(2,780,538

)

Net change in unrealized appreciation

 

15,280,402

 

5,365,230

 

Net increase in net assets resulting from operations

 

39,312,535

 

11,359,105

 

Stockholder distributions:

 

 

 

 

 

Distributions from net investment income

 

(21,107,677

)

(10,609,643

)

Net decrease in net assets resulting from stockholder distributions

 

(21,107,677

)

(10,609,643

)

Capital share transactions:

 

 

 

 

 

Issuance of common stock, net

 

 

125,427,706

 

Reinvestment of stockholder distributions

 

 

1,329,579

 

Net increase in net assets resulting from capital share transactions

 

 

126,757,285

 

 

 

 

 

 

 

Total increase in net assets

 

18,204,858

 

127,506,747

 

Net assets at beginning of period

 

1,001,629,147

 

506,962,828

 

Net assets at end of period

 

$

1,019,834,005

 

$

634,469,575

 

 

 

 

 

 

 

Net asset value per common share

 

$

19.81

 

$

20.33

 

Common stock outstanding at end of period

 

51,482,137

 

31,204,831

 

 

See Notes to Consolidated Financial Statements

 

6


Table of Contents

 

Bain Capital Specialty Finance, Inc.

 

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

For the Three Months
Ended March 31,

 

For the Three Months
Ended March 31,

 

 

 

2019

 

2018

 

Cash flows from operating activities

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

39,312,535

 

$

11,359,105

 

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

 

 

 

 

 

Purchases of investments

 

(370,321,836

)

(140,927,335

)

Proceeds from principal payments and sales of investments

 

153,616,278

 

66,582,086

 

Net realized (gain) loss from investments

 

849,933

 

(257,702

)

Net realized gain on foreign currency transactions

 

(5,885

)

(279,145

)

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

 

3,283,250

 

(941,491

)

Net change in unrealized appreciation on investments

 

(18,761,813

)

(4,441,083

)

Net change in unrealized depreciation on foreign currency translation

 

198,161

 

17,344

 

Increase in investments due to PIK

 

(100,779

)

 

Accretion of discounts and amortization of premiums

 

(838,687

)

(334,745

)

Amortization of deferred financing costs and debt issuance costs

 

311,495

 

353,594

 

Changes in operating assets and liabilities:

 

 

 

 

 

Collateral on forward currency exchange contracts

 

(400,000

)

(3,451,767

)

Interest receivable on investments

 

(1,723,165

)

(163,472

)

Prepaid insurance

 

1,517

 

44,625

 

Distribution receivable

 

 

(1,005,009

)

Dividend receivable

 

(441,439

)

(4,639,124

)

Other assets

 

(3,701,001

)

 

Interest payable

 

260,610

 

(154,422

)

Base management fee payable

 

1,550,529

 

379,748

 

Incentive fee payable

 

(1,197,057

)

2,004,548

 

Accounts payable and accrued expenses

 

1,024,099

 

(21,065

)

Excise tax payable

 

 

(4,882

)

Net cash used in operating activities

 

(197,083,255

)

(75,880,192

)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Borrowings on revolving credit facilities

 

465,929,188

 

59,000,000

 

Repayments of revolving credit facilities

 

(186,000,000

)

(120,601,250

)

Payments of financing costs

 

(124,000

)

 

Payments of offering costs

 

(88,933

)

 

Proceeds from issuance of common stock

 

 

125,427,706

 

Stockholder distributions paid

 

(21,107,677

)

(6,412,923

)

Net cash provided by financing activities

 

258,608,578

 

57,413,533

 

 

 

 

 

 

 

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

 

61,525,323

 

(18,466,659

)

Effect of foreign currency exchange rates

 

(167,315

)

289,401

 

Cash, foreign cash, restricted cash and cash equivalents, beginning of period

 

33,270,531

 

140,918,144

 

Cash, foreign cash, restricted cash and cash equivalents, end of period

 

$

94,628,539

 

$

122,740,886

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Cash interest paid during the period

 

$

9,973,582

 

$

4,089,725

 

Cash paid for excise taxes during the period

 

$

 

$

5,191

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

Reinvestment of stockholder distributions

 

$

 

$

1,329,579

 

 

 

 

As of March 31,

 

 

 

2019

 

2018

 

Cash

 

$

79,140,512

 

$

120,425,021

 

Restricted cash

 

14,009,400

 

2,315,865

 

Foreign cash

 

1,478,627

 

 

Total cash, foreign cash, restricted cash, and cash equivalents shown in the consolidated statements of cash flows

 

$

94,628,539

 

$

122,740,886

 

 

See Notes to Consolidated Financial Statements

 

7


Table of Contents

 

Bain Capital Specialty Finance, Inc.

 

Consolidated Schedule of Investments

As of March 31, 2019

(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 187.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments 179.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Controlled/Non-Affiliate Investments 144.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Fixed Income 2.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Bond 2.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Beverage, Food & Tobacco 0.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Hearthside Food Solutions, LLC

 

 

8.50

%

6/1/2026

 

$

10,000,000

 

$

9,798,421

 

$

8,725,000

 

Total Beverage, Food & Tobacco

 

 

 

 

 

 

 

 

 

9,798,421

 

8,725,000

 

Consumer Goods: Non-Durable 0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Kronos Acquisition Holdings Inc.

 

 

9.00

%

8/15/2023

 

$

10,000,000

 

9,383,119

 

8,625,000

 

Total Consumer Goods: Non-Durable

 

 

 

 

 

 

 

 

 

9,383,119

 

8,625,000

 

Utilities: Electric 1.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

CSVC Acquisition Corp

 

 

7.75

%

6/15/2025

 

$

13,478,000

 

 

12,510,549

 

 

10,479,145

 

Total Utilities: Electric

 

 

 

 

 

 

 

 

 

12,510,549

 

10,479,145

 

Total Corporate Bond

 

 

 

 

 

 

 

 

 

$

31,692,089

 

$

27,829,145

 

Total Corporate Fixed Income

 

 

 

 

 

 

 

 

 

$

31,692,089

 

$

27,829,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Debt 140.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Delayed Draw Term Loan 0.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Equipment 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

FFI Holdings I Corp (2) (3) (5) (15) (19)

 

 

 

1/24/2025

 

$

 

(16,727

)

(5,915

)

Total Capital Equipment

 

 

 

 

 

 

 

 

 

(16,727

)

(5,915

)

Construction & Building 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Chase Industries, Inc. (3) (15) (19) (21) (28)

 

L+ 4.00%

 

6.61

%

5/12/2025

 

$

199,183

 

182,648

 

189,824

 

Total Construction & Building

 

 

 

 

 

 

 

 

 

182,648

 

189,824

 

High Tech Industries 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Drilling Info Holdings, Inc (2) (3) (5) (12) (18) (21)

 

 

 

7/30/2025

 

$

 

(329

)

(301

)

Total High Tech Industries

 

 

 

 

 

 

 

 

 

(329

)

(301

)

Services: Business 0.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

AMCP Clean Acquisition Company, LLC (3) (12) (18) (19) (21)

 

L+ 4.25%

 

6.93

%

6/16/2025

 

$

1,530,988

 

1,524,691

 

1,511,402

 

Sovos Compliance, LLC (3) (12) (15) (19)

 

 

 

8/2/2019

 

$

 

 

 

Total Services: Business

 

 

 

 

 

 

 

 

 

1,524,691

 

1,511,402

 

Telecommunications 0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Horizon Telcom, Inc. (2) (3) (5) (12) (15) (19) (21)

 

 

 

6/15/2023

 

$

 

(18,327

)

(26,069

)

Total Telecommunications

 

 

 

 

 

 

 

 

 

(18,327

)

(26,069

)

Total Delayed Draw Term Loan

 

 

 

 

 

 

 

 

 

$

1,671,956

 

$

1,668,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Last Out Term Loan 2.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Environmental Industries 1.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

GBP LIBOR+ 8.25%

 

9.10

%

9/30/2022

 

£

13,126,156

 

16,589,772

 

16,938,845

 

Total Environmental Industries

 

 

 

 

 

 

 

 

 

16,589,772

 

16,938,845

 

Healthcare & Pharmaceuticals 1.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical Innovations, LLC (12) (15) (19) (21) (22)

 

L+ 5.50%

 

8.00

%

10/17/2023

 

$

10,999,896

 

10,800,725

 

11,109,895

 

Total Healthcare & Pharmaceuticals

 

 

 

 

 

 

 

 

 

10,800,725

 

11,109,895

 

Total First Lien Last Out Term Loan

 

 

 

 

 

 

 

 

 

$

27,390,497

 

$

28,048,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Senior Secured Loan 107.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense 7.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Forming & Machining Industries Inc. (12) (18) (19) (26)

 

L+ 4.25%

 

6.95

%

10/9/2025

 

$

14,899,926

 

14,829,285

 

14,378,429

 

 

8


Table of Contents

 

Novetta, LLC (12) (15) (21)

 

L+ 5.00%

 

7.50

%

10/17/2022

 

$

6,632,716

 

6,529,850

 

6,512,498

 

Salient CRGT, Inc. (12) (15) (19) (26)

 

L+ 5.75%

 

8.25

%

2/28/2022

 

$

12,995,678

 

13,051,778

 

12,833,232

 

StandardAero Aviation Holdings, Inc. (12) (15) (21)

 

L+ 3.75%

 

6.25

%

7/7/2022

 

$

19,719,833

 

19,814,703

 

19,769,232

 

WCI-HSG Purchaser, Inc. (12) (15) (19) (21)

 

L+ 4.50%

 

6.99

%

2/24/2025

 

$

17,868,359

 

17,611,833

 

17,600,333

 

WP CPP Holdings, LLC. (12) (15) (26)

 

L+ 3.75%

 

6.51

%

4/30/2025

 

$

4,703,208

 

4,692,553

 

4,676,165

 

Total Aerospace & Defense

 

 

 

 

 

 

 

 

 

76,530,002

 

75,769,889

 

Automotive 2.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

CST Buyer Company (12) (15) (19)

 

L+ 5.00%

 

7.50

%

3/1/2023

 

$

9,162,113

 

9,062,551

 

9,162,113

 

OEConnection LLC (12) (15) (26)

 

L+ 4.00%

 

6.50

%

11/22/2024

 

$

14,148,324

 

14,080,567

 

14,042,212

 

Wand Newco 3, Inc. (12) (18)

 

L+ 3.50%

 

5.98

%

2/5/2026

 

$

735,656

 

728,304

 

737,404

 

Total Automotive

 

 

 

 

 

 

 

 

 

23,871,422

 

23,941,729

 

Banking 1.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction Network Services, Inc. (12) (15) (21) (26)

 

L+ 4.00%

 

6.50

%

8/15/2022

 

$

18,374,730

 

18,156,200

 

18,195,577

 

Total Banking

 

 

 

 

 

 

 

 

 

18,156,200

 

18,195,577

 

Beverage, Food & Tobacco 2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

GOBP Holdings, Inc. (12) (18) (21) (26)

 

L+ 3.75%

 

6.35

%

10/22/2025

 

$

16,590,882

 

16,581,628

 

16,470,598

 

NPC International, Inc. (15) (26)

 

L+ 3.50%

 

6.05

%

4/19/2024

 

$

4,987,342

 

5,019,077

 

4,521,848

 

Total Beverage, Food & Tobacco

 

 

 

 

 

 

 

 

 

21,600,705

 

20,992,446

 

Capital Equipment 2.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Dorner Manufacturing Corp. (12) (15) (19)

 

L+ 5.75%

 

8.25

%

3/15/2023

 

$

7,931,735

 

7,828,384

 

7,931,735

 

DXP Enterprises, Inc. (6) (12) (15)

 

L+ 4.75%

 

7.25

%

8/29/2023

 

$

5,164,807

 

5,123,478

 

5,151,895

 

FFI Holdings I Corp (12) (15) (19)

 

L+ 5.75%

 

8.51

%

1/24/2025

 

$

5,208,526

 

5,146,791

 

5,156,441

 

Wilsonart LLC (15) (26)

 

L+ 3.25%

 

5.86

%

12/19/2023

 

$

9,949,367

 

9,938,124

 

9,678,894

 

Total Capital Equipment

 

 

 

 

 

 

 

 

 

28,036,777

 

27,918,965

 

Chemicals, Plastics & Rubber 2.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

L+ 3.50%

 

6.00

%

11/20/2023

 

$

503,551

 

501,851

 

500,404

 

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

 

L+ 3.50%

 

6.00

%

11/20/2023

 

$

654,777

 

652,566

 

650,685

 

Niacet b.v. (6) (15) (19) (21)

 

EURIBOR+ 4.50%

 

5.50

%

2/1/2024

 

3,769,837

 

4,036,084

 

4,218,430

 

Niacet Corporation (12) (15) (19)

 

L+ 4.50%

 

7.00

%

2/1/2024

 

$

2,168,353

 

2,151,398

 

2,162,932

 

Plaskolite, Inc. (15) (26)

 

L+ 4.25%

 

6.73

%

12/15/2025

 

$

12,000,401

 

11,766,907

 

12,015,401

 

US Salt, LLC (6) (18) (21)

 

L+ 4.75%

 

7.23

%

1/16/2026

 

$

3,729,604

 

3,692,587

 

3,729,604

 

Total Chemicals, Plastics & Rubber

 

 

 

 

 

 

 

 

 

22,801,393

 

23,277,456

 

Construction & Building 4.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Bolt Infrastructure Merger Sub, Inc. (12) (15)

 

L+ 3.50%

 

6.00

%

6/21/2024

 

$

2,663,662

 

2,655,830

 

2,638,690

 

Chase Industries, Inc. (12) (15) (19) (21) (27)

 

L+ 4.00%

 

6.61

%

5/12/2025

 

$

11,921,048

 

11,868,094

 

11,891,245

 

Crown Subsea (12) (18) (26)

 

L+ 6.00%

 

8.49

%

11/3/2025

 

$

13,232,500

 

13,041,177

 

13,100,175

 

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

 

EURIBOR+ 7.00%

 

7.50

%

4/18/2022

 

2,556,609

 

2,785,426

 

2,868,004

 

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

 

EURIBOR+ 7.00%

 

7.50

%

4/18/2022

 

7,759,873

 

8,333,528

 

8,705,026

 

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

 

EURIBOR+ 7.00%

 

7.50

%

4/18/2022

 

828,924

 

941,409

 

929,886

 

Total Construction & Building

 

 

 

 

 

 

 

 

 

39,625,464

 

40,133,026

 

Consumer Goods: Durable 1.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

New Milani Group LLC (12) (15) (19) (21)

 

L+ 4.25%

 

6.74

%

6/6/2024

 

$

17,273,200

 

17,119,701

 

17,273,200

 

Total Consumer Goods: Durable

 

 

 

 

 

 

 

 

 

17,119,701

 

17,273,200

 

Consumer Goods: Non-Durable 10.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

FineLine Technologies, Inc. (12) (15) (19) (21)

 

L+ 4.25%

 

6.85

%

11/4/2022

 

$

31,623,451

 

31,404,784

 

31,465,333

 

Kronos Acquisition Holdings Inc. (12) (15) (26)

 

L+ 4.00%

 

6.50

%

5/15/2023

 

$

13,181,476

 

13,144,549

 

12,346,694

 

Kronos Acquisition Holdings Inc. (18) (19) (21)

 

L+ 7.00%

 

9.50

%

5/15/2023

 

$

2,666,667

 

2,617,921

 

2,700,000

 

MND Holdings III Corp (15) (19) (21) (26)

 

L+ 3.50%

 

6.10

%

6/19/2024

 

$

13,731,923

 

13,778,746

 

13,543,109

 

RoC Opco LLC (12) (15) (19) (21)

 

L+ 7.25%

 

9.90

%

2/25/2025

 

$

47,793,140

 

46,651,384

 

46,837,277

 

Total Consumer Goods: Non-Durable

 

 

 

 

 

 

 

 

 

107,597,384

 

106,892,413

 

Containers, Packaging & Glass 2.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Mauser Packaging Solutions Holding Company (12) (18) (26)

 

L+ 3.25%

 

6.03

%

4/3/2024

 

$

6,296,385

 

6,338,095

 

6,158,651

 

Technimark LLC (12) (18) (19)

 

L+ 3.75%

 

6.38

%

8/8/2025

 

$

2,819,389

 

2,816,344

 

2,791,196

 

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

 

L+ 5.00%

 

7.63

%

6/20/2022

 

$

15,100,000

 

14,818,649

 

15,100,000

 

Total Containers, Packaging & Glass

 

 

 

 

 

 

 

 

 

23,973,088

 

24,049,847

 

 

9


Table of Contents

 

Energy: Electricity 1.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Infinite Electronics International Inc. (12) (18) (19) (21)

 

L+ 4.00%

 

6.50

%

7/2/2025

 

$

19,902,863

 

19,888,457

 

19,604,320

 

Total Energy: Electricity

 

 

 

 

 

 

 

 

 

19,888,457

 

19,604,320

 

Energy: Oil & Gas 3.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Blackbrush Oil & Gas, L.P. (12) (15) (19) (21)

 

L+ 8.00%

 

10.89

%

2/9/2024

 

$

32,075,000

 

31,531,482

 

31,192,938

 

Total Energy: Oil & Gas

 

 

 

 

 

 

 

 

 

31,531,482

 

31,192,938

 

FIRE: Finance 0.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Newport Group Holdings II Inc. (12) (18)

 

L+ 3.75%

 

6.36

%

9/12/2025

 

$

3,632,650

 

3,615,064

 

3,603,134

 

Total FIRE: Finance

 

 

 

 

 

 

 

 

 

3,615,064

 

3,603,134

 

FIRE: Insurance 1.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Alliant Holdings Intermediate, LLC (18) (21)

 

L+ 2.75%

 

5.23

%

5/9/2025

 

$

3,608,914

 

3,604,643

 

3,478,668

 

Wink Holdco, Inc. (12) (15) (21)

 

L+ 3.00%

 

5.50

%

12/2/2024

 

$

12,536,055

 

12,485,619

 

12,175,643

 

Total FIRE: Insurance

 

 

 

 

 

 

 

 

 

16,090,262

 

15,654,311

 

FIRE: Real Estate 1.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

EURIBOR+ 7.50%

 

8.50

%

8/9/2021

 

9,300,000.00

 

10,732,696

 

10,432,740

 

Total FIRE: Real Estate

 

 

 

 

 

 

 

 

 

10,732,696

 

10,432,740

 

Forest Products & Paper 1.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Solenis International LLC (12) (18) (21) (26)

 

L+ 4.00%

 

6.63

%

6/26/2025

 

$

15,314,412

 

15,240,654

 

15,110,195

 

Total Forest Products & Paper

 

 

 

 

 

 

 

 

 

15,240,654

 

15,110,195

 

Healthcare & Pharmaceuticals 3.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Datix Bidco Limited (6) (19) (21)

 

BBSW+ 4.50%

 

6.57

%

4/28/2025

 

AUD

4,211,615

 

3,199,293

 

2,943,734

 

Medical Depot Holdings, Inc. (12) (15) (19) (21)

 

L+ 5.50%

 

8.10

%

1/3/2023

 

$

16,326,691

 

14,798,825

 

12,979,720

 

Great Expressions Dental Centers PC (12) (15) (19)

 

L+ 4.75%

 

7.63

%

9/28/2023

 

$

7,961,850

 

7,877,358

 

7,842,422

 

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

 

L+ 6.50%

 

9.00

%

9/1/2022

 

$

9,240,771

 

9,139,104

 

8,039,470

 

Total Healthcare & Pharmaceuticals

 

 

 

 

 

 

 

 

 

35,014,580

 

31,805,346

 

High Tech Industries 16.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

CMI Marketing Inc (12) (15) (19) (21)

 

L+ 4.75%

 

7.25

%

5/24/2024

 

$

15,371,840

 

15,237,949

 

15,371,840

 

Drilling Info Holdings, Inc (12) (18) (21)

 

L+ 4.25%

 

6.75

%

7/30/2025

 

$

22,707,343

 

22,622,998

 

22,622,191

 

Elo Touch Solutions, Inc. (18) (21) (26)

 

L+ 6.50%

 

9.09

%

12/15/2025

 

$

18,705,958

 

17,799,075

 

18,705,958

 

Lighthouse Network, LLC (12) (15) (26)

 

L+ 4.50%

 

7.24

%

12/2/2024

 

$

20,037,653

 

19,978,781

 

20,004,291

 

MeridianLink, Inc. (15) (26)

 

L+ 4.00%

 

6.50

%

5/30/2025

 

$

1,838,830

 

1,815,948

 

1,811,247

 

Netsmart Technologies, Inc. (12) (15) (26)

 

L+ 3.75%

 

6.25

%

4/19/2023

 

$

21,567,193

 

21,601,682

 

21,459,357

 

Park Place Technologies (12) (15) (21)

 

L+ 4.00%

 

6.50

%

3/31/2025

 

$

11,618,900

 

11,575,936

 

11,565,627

 

Project Alpha Intermediate Holding, Inc. (12) (15) (26)

 

L+ 3.50%

 

6.37

%

4/26/2024

 

$

21,021,259

 

20,973,132

 

20,548,280

 

VPARK BIDCO AB (6) (16) (19) (21)

 

CIBOR+ 4.00%

 

4.75

%

3/10/2025

 

DKK

56,999,385

 

9,140,275

 

8,565,025

 

VPARK BIDCO AB (6) (16) (19) (21)

 

NIBOR+ 4.00%

 

5.24

%

3/10/2025

 

NOK

74,019,870

 

9,177,214

 

8,580,323

 

Zywave, Inc. (12) (15) (19) (21)

 

L+ 5.00%

 

7.50

%

11/17/2022

 

$

17,504,729

 

17,422,456

 

17,504,729

 

Total High Tech Industries

 

 

 

 

 

 

 

 

 

167,345,446

 

166,738,868

 

Hotel, Gaming & Leisure 3.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Captain D’s LLC (12) (15) (19) (21)

 

L+ 4.50%

 

6.99

%

12/15/2023

 

$

13,138,727

 

13,026,488

 

12,908,799

 

Quidditch Acquisition, Inc. (12) (15) (19) (21) (26)

 

L+ 7.00%

 

9.49

%

3/21/2025

 

$

19,168,334

 

19,154,996

 

19,360,017

 

Tacala Investment Corp. (12) (18) (26)

 

L+ 3.25%

 

5.75

%

1/31/2025

 

$

3,495,045

 

3,443,487

 

3,456,809

 

Total Hotel, Gaming & Leisure

 

 

 

 

 

 

 

 

 

35,624,971

 

35,725,625

 

Media: Advertising, Printing & Publishing 1.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

Cambium Learning Group, Inc. (12) (18) (19) (26)

 

L+ 4.50%

 

7.00

%

12/18/2025

 

$

12,294,508

 

11,696,837

 

12,202,299

 

Total Media: Advertising, Printing & Publishing

 

 

 

 

 

 

 

 

 

11,696,837

 

12,202,299

 

Media: Broadcasting & Subscription 1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Micro Holding Corp. (12) (18) (26)

 

L+ 3.75%

 

6.24

%

9/13/2024

 

$

14,729,292

 

14,683,488

 

14,553,351

 

Total Media: Broadcasting & Subscription

 

 

 

 

 

 

 

 

 

14,683,488

 

14,553,351

 

Media: Diversified & Production 3.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Getty Images, Inc. (18) (21) (26)

 

L+ 4.50%

 

7.00

%

2/19/2026

 

$

22,067,221

 

21,861,549

 

21,939,673

 

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

 

GBP LIBOR+ 4.75%

 

5.65

%

5/31/2023

 

£

8,685,518

 

10,624,422

 

11,321,573

 

Total Media: Diversified & Production

 

 

 

 

 

 

 

 

 

32,485,971

 

33,261,246

 

Retail 3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Calceus Acquisition, Inc. (18) (21)

 

L+ 5.50%

 

7.99

%

2/12/2025

 

$

9,169,354

 

9,095,558

 

9,135,015

 

CVS Holdings I, LP (12) (15) (21)

 

L+ 2.75%

 

5.25

%

2/6/2025

 

$

14,874,812

 

14,856,126

 

14,409,974

 

 

10


Table of Contents

 

Eyemart Express LLC (15) (21)

 

L+ 3.00%

 

5.50

%

8/5/2024

 

$

7,506,781

 

7,528,708

 

7,445,789

 

Total Retail

 

 

 

 

 

 

 

 

 

31,480,392

 

30,990,778

 

Services: Business 13.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Sales & Marketing Inc. (12) (15) (26)

 

L+ 3.25%

 

5.75

%

7/23/2021

 

$

15,702,089

 

15,483,104

 

13,403,224

 

AMCP Clean Acquisition Company, LLC (12) (18) (19) (21)

 

L+ 4.25%

 

6.85

%

6/16/2025

 

$

16,215,820

 

16,170,294

 

16,134,741

 

Comet Bidco Limited (6) (18) (21)

 

GBP LIBOR+ 5.00%

 

5.73

%

9/30/2024

 

£

10,260,870

 

13,094,692

 

12,998,937

 

Lakeland Tours, LLC (12) (15)

 

L+ 4.00%

 

6.61

%

12/16/2024

 

$

2,887,182

 

2,878,204

 

2,876,355

 

LegalZoom.com, Inc. (18) (21) (26)

 

L+ 4.50%

 

6.99

%

11/21/2024

 

$

15,799,043

 

15,698,055

 

15,887,913

 

New Insight Holdings, Inc. (12) (15) (26)

 

L+ 5.50%

 

8.00

%

12/20/2024

 

$

20,477,176

 

20,002,609

 

20,400,387

 

Sovos Compliance, LLC (12) (15) (19)

 

L+ 6.00%

 

8.50

%

3/1/2022

 

$

8,579,030

 

8,519,093

 

8,493,240

 

Sovos Compliance, LLC (12) (15) (19)

 

L+ 6.00%

 

8.50

%

8/2/2019

 

$

3,947,903

 

3,947,903

 

3,899,715

 

Valet Waste Holdings, Inc (12) (18) (21) (26)

 

L+ 4.00%

 

6.50

%

9/29/2025

 

$

30,580,255

 

30,509,554

 

30,484,692

 

XO Management Holding Inc. (18) (19) (26)

 

L+ 5.75%

 

8.36

%

12/6/2021

 

$

12,354,923

 

11,549,868

 

11,984,276

 

Total Services: Business

 

 

 

 

 

 

 

 

 

137,853,376

 

136,563,480

 

Services: Consumer 4.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

GI Chill Acquisition LLC (12) (18) (21) (26)

 

L+ 4.00%

 

6.60

%

8/6/2025

 

$

15,370,063

 

15,325,606

 

15,398,882

 

Trafalgar Bidco Limited (6) (19) (21)

 

GBP LIBOR+ 5.00%

 

5.73

%

9/11/2024

 

£

6,011,060

 

7,704,288

 

7,639,531

 

Travel Leaders Group, LLC (12) (18)

 

L+ 4.00%

 

6.48

%

1/25/2024

 

$

526,641

 

525,454

 

528,395

 

Trident LS Merger Sub Corp (12) (18)

 

L+ 3.00%

 

5.50

%

5/1/2025

 

$

4,185,675

 

4,181,440

 

4,143,818

 

WeddingWire, Inc. (18) (21) (26)

 

L+ 4.50%

 

6.99

%

12/19/2025

 

$

16,177,326

 

16,214,865

 

16,167,215

 

Total Services: Consumer

 

 

 

 

 

 

 

 

 

43,951,653

 

43,877,841

 

Telecommunications 1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Horizon Telcom, Inc. (12) (15) (19) (21)

 

L+ 4.50%

 

6.99

%

6/15/2023

 

$

13,833,931

 

13,688,028

 

13,626,422

 

Masergy Holdings, Inc. (15) (26)

 

L+ 3.25%

 

5.85

%

12/15/2023

 

$

684,364

 

682,089

 

670,677

 

Total Telecommunications

 

 

 

 

 

 

 

 

 

14,370,117

 

14,297,099

 

Transportation: Cargo 4.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

ENC Holding Corporation (12) (18) (26)

 

L+ 4.00%

 

6.60

%

5/30/2025

 

$

10,345,408

 

10,331,665

 

10,222,556

 

Grammer Purchaser, Inc. (12) (15) (19) (21)

 

L+ 4.75%

 

7.25

%

9/30/2024

 

$

10,283,318

 

10,118,785

 

10,129,068

 

PS HoldCo, LLC (12) (15) (26)

 

L+ 4.75%

 

7.25

%

3/13/2025

 

$

23,448,440

 

23,438,751

 

23,419,129

 

Total Transportation: Cargo

 

 

 

 

 

 

 

 

 

43,889,201

 

43,770,753

 

Wholesale 5.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

PetroChoice Holdings, Inc. (15) (26)

 

L+ 5.00%

 

7.74

%

8/19/2022

 

$

3,619,869

 

3,587,386

 

3,619,869

 

PT Holdings, LLC (12) (15) (26)

 

L+ 4.00%

 

6.50

%

12/9/2024

 

$

21,616,515

 

21,577,120

 

21,292,267

 

Specialty Building Products Holdings, LLC (12) (18) (26)

 

L+ 5.75%

 

8.25

%

10/1/2025

 

$

16,944,043

 

16,845,998

 

16,605,162

 

SRS Distribution Inc. (18) (21) (26)

 

L+ 3.25%

 

5.75

%

5/23/2025

 

$

19,949,875

 

19,471,177

 

19,093,726

 

Total Wholesale

 

 

 

 

 

 

 

 

 

61,481,681

 

60,611,024

 

Total First Lien Senior Secured Loan

 

 

 

 

 

 

 

 

 

$

1,106,288,464

 

$

1,098,439,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolver 2.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense 0.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

4/22/2024