(Mark One) | |
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2014 | |
OR | |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Maryland (State or Other Jurisdiction of Incorporation or Organization) | 45-3999996 (I.R.S. Employer Identification No.) | |
2800 Post Oak Boulevard Suite 5000 Houston, Texas (Address of Principal Executive Offices) | 77056-6118 (Zip Code) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
Item 1. | Financial Statements | |
Consolidated Balance Sheets as of June 30, 2014 (Unaudited) and December 31, 2013 | ||
Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2014 and 2013 | ||
Unaudited Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2014 and 2013 | ||
Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2014 and 2013 | ||
Consolidated Schedules of Investments as of June 30, 2014 (Unaudited) and December 31, 2013 | ||
Notes to the Consolidated Financial Statements (Unaudited) | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II — OTHER INFORMATION | ||
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
Signatures | ||
Exhibit Index |
June 30, 2014 | December 31, 2013 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Portfolio investments at fair value: | |||||||
Non-Control/Non-Affiliate investments (amortized cost: $247,943 and $66,410 as of June 30, 2014 and December 31, 2013, respectively) | $ | 248,687 | $ | 66,882 | |||
Total portfolio investments (amortized cost: $247,943 and $66,410 as of June 30, 2014 and December 31, 2013, respectively) | 248,687 | 66,882 | |||||
Cash | 12,321 | 6,356 | |||||
Interest receivable | 1,333 | 399 | |||||
Receivable for securities sold | 3,031 | — | |||||
Prepaid and other assets | 518 | 109 | |||||
Due from Main Street Capital Corporation | 21 | 19 | |||||
Deferred offering costs (net of accumulated amortization of $2,002 and $631 as of June 30, 2014 and December 31, 2013, respectively) | 3,495 | 3,688 | |||||
Deferred financing costs (net of accumulated amortization of $268 and $144 as of June 30, 2014 and December 31, 2013, respectively) | 1,803 | 168 | |||||
Total assets | $ | 271,209 | $ | 77,621 | |||
LIABILITIES | |||||||
Accounts payable and other liabilities | $ | 466 | $ | 71 | |||
Payable for unsettled trades | 3,692 | 2,608 | |||||
Stockholder distributions payable | 780 | 295 | |||||
Due to affiliates | 4,474 | 3,771 | |||||
Payable for securities purchased | 49,143 | 8,799 | |||||
Note payable | 83,000 | 14,000 | |||||
Total liabilities | 141,555 | 29,544 | |||||
Commitments and Contingencies (Note 11) | |||||||
NET ASSETS | |||||||
Common stock, $.001 par value; 150,000,000 shares authorized, 14,645,700 and 5,396,967 issued and outstanding as of June 30, 2014 and December 31, 2013, respectively | 14 | 5 | |||||
Additional paid in capital | 129,401 | 47,600 | |||||
Accumulated net investment income, net of stockholder distributions | — | — | |||||
Accumulated net realized gain on investment, net of stockholder distributions | — | — | |||||
Distributions in excess of accumulated net investment income and net realized gains | (505 | ) | — | ||||
Net unrealized appreciation | 744 | 472 | |||||
Total net assets | 129,654 | 48,077 | |||||
Total liabilities and net assets | $ | 271,209 | $ | 77,621 | |||
Net asset value per share | $ | 8.85 | $ | 8.91 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||
INVESTMENT INCOME: | |||||||||||||||
Interest income: | |||||||||||||||
Non-Control/Non-Affiliate investments | $ | 3,210 | $ | 559 | $ | 4,871 | $ | 951 | |||||||
Total interest income | 3,210 | 559 | 4,871 | 951 | |||||||||||
EXPENSES: | |||||||||||||||
Interest expense | 522 | 78 | 722 | 155 | |||||||||||
Base management and incentive fees | 1,101 | 118 | 1,707 | 202 | |||||||||||
Administrative services expenses | 385 | 222 | 714 | 455 | |||||||||||
Professional fees | 79 | 75 | 289 | 190 | |||||||||||
Insurance | 48 | 47 | 94 | 93 | |||||||||||
Other general and administrative | 166 | 62 | 244 | 115 | |||||||||||
Expenses before fee and expense waivers | 2,301 | 602 | 3,770 | 1,210 | |||||||||||
Waiver of management and incentive fees | (551 | ) | (118 | ) | (854 | ) | (202 | ) | |||||||
Waiver of administrative services expenses | (385 | ) | (222 | ) | (714 | ) | (455 | ) | |||||||
Total expenses, net of fee and expense waivers | 1,365 | 262 | 2,202 | 553 | |||||||||||
NET INVESTMENT INCOME | 1,845 | 297 | 2,669 | 398 | |||||||||||
NET REALIZED GAIN FROM INVESTMENTS | |||||||||||||||
Non-Control/Non-Affiliate investments | 82 | 4 | 151 | 4 | |||||||||||
Affiliate investments | — | — | — | — | |||||||||||
Total realized gain from investments | 82 | 4 | 151 | 4 | |||||||||||
NET REALIZED INCOME | 1,927 | 301 | 2,820 | 402 | |||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) | |||||||||||||||
Non-Control/Non-Affiliate investments | 44 | (69 | ) | 272 | 138 | ||||||||||
Affiliate investments | — | — | — | — | |||||||||||
Total net unrealized appreciation (depreciation) | 44 | (69 | ) | 272 | 138 | ||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,971 | $ | 232 | $ | 3,092 | $ | 540 | |||||||
NET INVESTMENT INCOME PER SHARE/UNIT – BASIC AND DILUTED | $ | 0.16 | $ | 0.15 | $ | 0.28 | $ | 0.23 | |||||||
NET REALIZED INCOME PER SHARE/UNIT | $ | 0.16 | $ | 0.15 | $ | 0.29 | $ | 0.23 | |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE/UNIT – BASIC AND DILUTED | $ | 0.17 | $ | 0.11 | $ | 0.32 | $ | 0.31 | |||||||
DISTRIBUTIONS DECLARED PER SHARE/UNIT | $ | 0.18 | $ | 0.18 | $ | 0.35 | $ | 0.35 | |||||||
WEIGHTED AVERAGE SHARES/UNITS OUTSTANDING – BASIC AND DILUTED | 11,740,655 | 2,040,929 | 9,576,473 | 1,726,103 |
Common Stock | ||||||||||||||||||||||||||||||
Number of Shares | Par Value | Additional Paid-In Capital | Accumulated Net Investment Income, Net of Stockholder Distributions | Accumulated Net Realized Gain, Net of Stockholder Distributions | Distributions from Other Sources (1) | Net Unrealized Appreciation | Total Net Assets | |||||||||||||||||||||||
Balance at December 31, 2013 | 5,396,967 | $ | 5 | $ | 47,600 | $ | — | $ | — | $ | — | $ | 472 | $ | 48,077 | |||||||||||||||
Issuance of common stock | 9,250,795 | 9 | 91,392 | — | — | — | — | 91,401 | ||||||||||||||||||||||
Redemption of common stock | (2,062 | ) | — | (15 | ) | — | — | — | — | (15 | ) | |||||||||||||||||||
Selling commissions and dealer manager fees | — | — | (8,205 | ) | — | — | — | — | (8,205 | ) | ||||||||||||||||||||
Offering costs | — | — | (1,371 | ) | — | — | — | — | (1,371 | ) | ||||||||||||||||||||
Stockholder distributions declared | — | — | — | (2,669 | ) | (151 | ) | (505 | ) | — | (3,325 | ) | ||||||||||||||||||
Net increase in net assets resulting from operations | — | — | — | 2,669 | 151 | — | 272 | 3,092 | ||||||||||||||||||||||
Balance at June 30, 2014 | 14,645,700 | $ | 14 | $ | 129,401 | $ | — | $ | — | $ | (505 | ) | $ | 744 | $ | 129,654 |
Common Stock | ||||||||||||||||||||||||||||||
Number of Shares | Par Value | Additional Paid-In Capital | Accumulated Net Investment Income, Net of Stockholder Distributions | Accumulated Net Realized Gain, Net of Stockholder Distributions | Distributions from Other Sources (1) | Net Unrealized Appreciation | Total Net Assets | |||||||||||||||||||||||
Balance at December 31, 2012 | 1,289,472 | $ | 1 | $ | 11,248 | $ | 109 | $ | 14 | $ | — | $ | 51 | $ | 11,423 | |||||||||||||||
Issuance of common stock | 1,117,630 | 1 | 11,008 | — | — | — | — | 11,009 | ||||||||||||||||||||||
Selling commissions and dealer manager fees | — | — | (947 | ) | — | — | — | — | (947 | ) | ||||||||||||||||||||
Offering costs | — | — | (165 | ) | — | — | — | — | (165 | ) | ||||||||||||||||||||
Stockholder distributions declared | — | — | — | (507 | ) | (18 | ) | (74 | ) | — | (599 | ) | ||||||||||||||||||
Net increase in net assets resulting from operations | — | — | — | 398 | 4 | — | 138 | 540 | ||||||||||||||||||||||
Balance at June 30, 2013 | 2,407,102 | $ | 2 | $ | 21,144 | $ | — | $ | — | $ | (74 | ) | $ | 189 | $ | 21,261 |
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net increase in net assets resulting from operations | $ | 3,092 | $ | 540 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: | |||||||
Principal repayments received, proceeds from sales of investments in portfolio companies | 26,757 | 6,422 | |||||
Investments in portfolio companies | (170,492 | ) | (19,827 | ) | |||
Net unrealized (appreciation) of portfolio investments | (272 | ) | (138 | ) | |||
Net realized (gain) on sale of portfolio investments | (151 | ) | (4 | ) | |||
Amortization of deferred financing costs | 124 | 40 | |||||
Accretion of unearned income | (412 | ) | (21 | ) | |||
Net payment-in-kind interest accrual | (44 | ) | (59 | ) | |||
Changes in other assets and liabilities: | |||||||
Interest receivable | (934 | ) | (83 | ) | |||
Prepaid and other assets | (288 | ) | (98 | ) | |||
Due from Main Street Capital Corporation | (2 | ) | 936 | ||||
Due to affiliates | 1,807 | (199 | ) | ||||
Accounts payable and other liabilities | 235 | (59 | ) | ||||
Payable for unsettled trades | 1,084 | 911 | |||||
Net cash provided by (used in) operating activities | (139,496 | ) | (11,639 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from issuance of common stock | 88,814 | 10,761 | |||||
Redemption of common shares | (15 | ) | — | ||||
Payment of selling commissions and dealer manager fees | (7,743 | ) | (947 | ) | |||
Payment of offering costs | (1,373 | ) | (186 | ) | |||
Payment of stockholder distributions | (1,624 | ) | (458 | ) | |||
Repayments on note payable | (64,000 | ) | (2,000 | ) | |||
Proceeds from note payable | 133,000 | 5,000 | |||||
Payment of deferred financing costs | (1,598 | ) | (11 | ) | |||
Net cash provided by (used in) financing activities | 145,461 | 12,159 | |||||
Net increase in cash and cash equivalents | 5,965 | 520 | |||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 6,356 | 1,832 | |||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | $ | 12,321 | $ | 2,352 |
Portfolio Company (1) | Business Description | Type of Investment (1) | Principal (5) | Cost (5) | Fair Value | ||||||
Non-Control/Non-Affiliate Investments (2) | |||||||||||
Ability Network Inc. (6) | Health Care Information Technology | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.00%, Secured Debt (Maturity - May 14, 2021) | $ | 5,000 | $ | 4,946 | $ | 4,994 | |||
Accuvant Finance LLC (6) | Cyber Security Value Added Reseller | LIBOR Plus 4.75% (Floor 1%), Current Coupon 5.75%, Secured Debt (Maturity - October 22, 2020) | 2,875 | 2,847 | 2,861 | ||||||
Allflex Holdings III Inc. (6) (9) | Manufacturer of Livestock Identification Products | LIBOR Plus 7.00% (Floor 1%), Current Coupon 8.00%, Secured Debt (Maturity - July 19, 2021) (11) | 5,222 | 5,309 | 5,280 | ||||||
Ameritech College Operations, LLC (8) (10) | For-Profit Nursing and Healthcare College | 18% Secured Debt, (Maturity - March 9, 2017) | 750 | 750 | 750 | ||||||
AMF Bowling Centers, Inc. (6) | Bowling Alley Operator | LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity - June 29, 2018) | 4,924 | 4,992 | 5,032 | ||||||
Ancile Solutions, Inc. (6) | Provider of eLearning Solutions | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - July 15, 2018) | 1,203 | 1,194 | 1,211 | ||||||
Answers Corporation (6) (9) | Consumer Internet Search Services Provider | LIBOR Plus 5.50% (Floor 1%), Current Coupon 6.50%, Secured Debt (Maturity - December 20, 2018) | 3,197 | 3,200 | 3,204 | ||||||
Aptean, Inc. (6) (9) | Enterprise Application Software Provider | LIBOR Plus 4.25% (Floor 1%), Current Coupon 5.25%, Secured Debt (Maturity - February 26, 2020) | 6,983 | 6,979 | 7,026 | ||||||
Artel, LLC (6) | Land-Based and Commercial Satellite Provider | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - November 27, 2017) | 966 | 939 | 932 | ||||||
Ascend Learning, LLC (6) (9) | Technology Based Healthcare Learning Solutions | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.00%, Secured Debt (Maturity - July 31, 2019) | 746 | 737 | 757 | ||||||
Atkins Nutritionals Holdings II, Inc. (6) | Weight Management Food Products | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - January 2, 2019) | 956 | 948 | 957 | ||||||
BBTS Borrower LP (6) | Oil & Gas Exploration and Midstream Services | LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity - June 4, 2019) | 4,666 | 4,709 | 4,716 | ||||||
Blackhawk Specialty Tools LLC (6) | Oilfield Equipment & Services | LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity - August 1, 2019) | 1,462 | 1,462 | 1,466 | ||||||
Blue Bird Body Company (6) | School Bus Manufacturer | LIBOR Plus 5.50% (Floor 1%), Current Coupon 6.50%, Secured Debt (Maturity - June 26, 2020) | 6,000 | 5,910 | 5,925 | ||||||
Bluestem Brands, Inc. (6) | Multi-Channel Retailer of General Merchandise | LIBOR Plus 6.50% (Floor 1%), Current Coupon 7.50%, Secured Debt (Maturity - December 6, 2018) | 1,644 | 1,637 | 1,657 | ||||||
California Healthcare Medical Billing, Inc. (8) (10) | Outsourced Billing & Revenue Cycle Management | 9% Secured Debt, (Maturity - October 17, 2016) | 750 | 744 | 750 | ||||||
California Pizza Kitchen, Inc. (6) (9) | Casual Dining Restaurant Chain | LIBOR Plus 4.25% (Floor 1%), Current Coupon 5.25%, Secured Debt (Maturity - March 29, 2018) | 5,979 | 5,720 | 5,725 | ||||||
Cedar Bay Generation Company LP (6) | Coal-Fired Cogeneration Plant | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - April 23, 2020) | 1,615 | 1,615 | 1,635 | ||||||
Charlotte Russe, Inc. (9) | Fast-fashion retailer to young women | LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity - May 22, 2019) | 5,500 | 5,499 | 5,479 | ||||||
CST Industries, Inc. (6) | Storage Tank Manufacturer | LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity - May 22, 2017) | 2,432 | 2,404 | 2,372 | ||||||
Datacom, LLC (8) (10) | Technology and Telecommunications Provider | Member Units (Fully Diluted 4.18%) | 670 | 670 | |||||||
10.50% Secured Debt (Maturity - May 30, 2019) | 1,245 | 1,220 | 1,220 | ||||||||
8.00% Secured Debt (Maturity - May 29, 2015) | 40 | 40 | 40 | ||||||||
1,930 | 1,930 | ||||||||||
e-Rewards, Inc. (6) | Provider of Digital Data Collection | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.00%, Secured Debt (Maturity - October 29, 2018) | 4,444 | 4,429 | 4,444 | ||||||
Excelitas Technologies Corp. (6) | Lighting and Sensor Components | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.00%, Secured Debt (Maturity - November 2, 2020) | 3,469 | 3,485 | 3,503 | ||||||
Extreme Reach, LLC (6) | TV and Video Advertising Platform | LIBOR Plus 5.75% (Floor 1%), Current Coupon 6.75%, Secured Debt (Maturity - February 7, 2020) | 748 | 737 | 758 | ||||||
Fender Musical Instruments Corporation (6) | Manufacturer of Musical Instruments | LIBOR Plus 4.50% (Floor 1.25%), Current Coupon 5.75%, Secured Debt (Maturity - April 3, 2019) | 445 | 444 | 449 | ||||||
FishNet Security, Inc. (6) (9) | Information Technology Value-Added Reseller | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - November 30, 2017) | 2,783 | 2,768 | 2,776 | ||||||
Fram Group Holdings, Inc. (6) | Manufacturer of Automotive Maintenance Products | LIBOR Plus 5.00% (Floor 1.50%), Current Coupon 6.50%, Secured Debt (Maturity - July 29, 2017) | 3,492 | 3,480 | 3,508 | ||||||
iEnergizer Limited (6) (7) (9) | Provider of Business Outsourcing Solutions | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - May 1, 2019) | 5,650 | 5,603 | 5,537 | ||||||
Inn of the Mountain Gods Resort and Casino | Hotel & Casino Owner & Operator | 9.25% Secured Bond (Maturity - November 30, 2020) | 5,884 | 5,833 | 5,840 | ||||||
Ipreo Holdings LLC (6) | Application Software for Capital Markets | LIBOR Plus 4.00% (Floor 1%), Current Coupon 5.00%, Secured Debt (Maturity - August 7, 2017) | 728 | 728 | 728 | ||||||
iQor US Inc. (6) (9) | Business Process Outsourcing Services Provider | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.00%, Secured Debt (Maturity - April 1, 2021) | 5,921 | 5,766 | 5,698 | ||||||
Jackson Hewitt Tax Service Inc. (6) | Tax Preparation Service Provider | LIBOR Plus 8.50% (Floor 1.50%), Current Coupon 10.00%, Secured Debt (Maturity - October 16, 2017) | 3,258 | 3,266 | 3,250 | ||||||
Keypoint Government Solutions, Inc. (6) | Pre-Employment Screening Services | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - November 13, 2017) | 1,866 | 1,862 | 1,867 | ||||||
Larchmont Resources, LLC (6) | Oil & Gas Exploration & Production | LIBOR Plus 7.25% (Floor 1%), Current Coupon 8.25%, Secured Debt (Maturity - August 7, 2019) | 743 | 746 | 759 | ||||||
Learning Care Group (US) No. 2 Inc. (6) | Provider of Early Childhood Education | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - May 5, 2021) | 750 | 742 | 763 | ||||||
LJ Host Merger Sub, Inc. (6) | Managed Services and Hosting Provider | LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity - December 13, 2019) | 5,453 | 5,434 | 5,453 | ||||||
LIBOR Plus 8.75% (Floor 1.25%), Current Coupon 10.00%, Secured Debt (Maturity - December 11, 2020) (11) | 500 | 490 | 498 | ||||||||
5,924 | 5,951 | ||||||||||
LTI Flexible Products, Inc. (6) | Manufacturer of Environmental & Energy Management Components | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - May 1, 2021) | 3,000 | 2,985 | 3,004 | ||||||
MAH Merger Corporation (6) | Sports-Themed Casual Dining Chain | LIBOR Plus 4.50% (Floor 1.25%), Current Coupon 5.75%, Secured Debt (Maturity - July 19, 2019) | 1,489 | 1,489 | 1,492 | ||||||
MediMedia USA, Inc. (6) | Provider of Healthcare Media and Marketing | LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity - November 20, 2018) | 1,973 | 1,929 | 1,933 | ||||||
MedSolutions Holdings, Inc. (6) | Specialty Benefit Management | LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity - July 8, 2019) | 1,924 | 1,923 | 1,933 | ||||||
Milk Specialties Company (9) | Processor of Nutrition Products | LIBOR Plus 6.25% (Floor 1.25%), Current Coupon 7.50%, Secured Debt (Maturity - November 9, 2018) | 4,738 | 4,738 | 4,714 | ||||||
Mood Media Corporation (7) (9) | Electronic Equipment & Instruments | LIBOR Plus 6.00% (Floor 1%), Current Coupon 7.00%, Secured Debt (Maturity - May 1, 2019) | 5,985 | 6,010 | 6,004 | ||||||
MP Assets Corporation (6) | Manufacturer of Battery Components | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - December 19, 2019) | 980 | 971 | 980 | ||||||
New Media Holdings II LLC (6) (7) | Local Newspaper Operator | LIBOR Plus 6.25% (Floor 1%), Current Coupon 7.25%, Secured Debt (Maturity - June 3, 2020) | 5,000 | 4,901 | 4,925 | ||||||
Nice-Pak Products, Inc. (6) | Pre-Moistened Wipes Manufacturer | LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity - June 18, 2015) | 4,162 | 4,142 | 4,162 | ||||||
North Atlantic Trading Company, Inc. (6) | Marketer/Distributor of Tobacco | LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity -January 13, 2020) | 1,493 | 1,478 | 1,505 | ||||||
NRC US Holding Company LLC (6) | Environmental Services Provider | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity -March 3, 2020) | 3,483 | 3,474 | 3,500 | ||||||
Panolam Industries International, Inc. (6) | Decorative Laminate Manufacturer | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - August 23, 2017) | 868 | 862 | 868 | ||||||
Permian Holdings, Inc. | Storage Tank Manufacturer | 10.50% Secured Bond (Maturity - January 15, 2018) | 1,910 | 1,885 | 1,963 | ||||||
Peroxychem, LLC. (6) | Chemical Manufacturer | Libor Plus 6.50% (Floor 1%), Current Coupon 7.5%, Secured Debt (Maturity - February 28, 2020) | 4,489 | 4,466 | 4,534 | ||||||
Pitney Bowes Management Services Inc. (6) | Provider of Document Management Services | LIBOR Plus 6.25% (Floor 1.25%), Current Coupon 7.5%, Secured Debt (Maturity - October 1, 2019) | 993 | 984 | 1,004 | ||||||
Polyconcept Financial B.V. (6) (9) | Promotional Products to Corporations and Consumers | LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity - June 28, 2019) | 5,936 | 5,935 | 5,921 | ||||||
Premier Dental Services, Inc. (6) (9) | Dental Care Services | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.25%, Secured Debt (Maturity - November 1, 2018) | 4,987 | 5,015 | 5,014 | ||||||
Prowler Acquisition Corporation (6) (9) | Specialty Distributor to the Energy Sector | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - January 28, 2020) | 2,334 | 2,347 | 2,357 | ||||||
Quad-C JH Holdings Inc. (6) (9) | Health Care Equipment & Supplies | LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity - May 9, 2020) | 4,479 | 4,454 | 4,462 | ||||||
Ravago Holdings America, Inc. (6) (9) | Polymers Distributor | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - December 20, 2020) | 5,985 | 6,028 | 6,045 | ||||||
RCHP, Inc. (6) (9) | Regional non-urban hospital owner/operator | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.00%, Secured Debt (Maturity - April 23, 2019) | 1,500 | 1,485 | 1,501 | ||||||
LIBOR Plus 9.50% (Floor 1%), Current Coupon 10.50%, Secured Debt (Maturity - October 23, 2019) (11) | 6,500 | 6,453 | 6,472 | ||||||||
7,938 | 7,973 | ||||||||||
Recorded Books, Inc. (6) | Audiobook and Digital Content Publisher | LIBOR Plus 4.25% (Floor 1%), Current Coupon 5.25%, Secured Debt (Maturity - March 3, 2020) | 4,444 | 4,425 | 4,444 | ||||||
Relativity Media, LLC | Full-scale Film and Television Production and Distribution | 10.00% Secured Debt (Maturity - May 30, 2015) | 3,693 | 3,693 | 3,703 | ||||||
15.00% PIK Secured Debt (Maturity - May 30, 2015) (11) | 3,044 | 3,044 | 3,105 | ||||||||
6,737 | 6,808 | ||||||||||
Renaisssance Learning, Inc. (6) | Technology-based K-12 learning solutions | LIBOR Plus 7.00% (Floor 1%), Current Coupon 8.00%, Secured Debt (Maturity - April 11, 2022) (11) | 2,000 | 1,980 | 1,999 | ||||||
RentPath, Inc. (6) (9) | Online Apartment Aggregator | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - May 29, 2020) | 492 | 480 | 497 | ||||||
SCE Partners, LLC (6) | Hotel & Casino Operator | LIBOR Plus 7.25% (Floor 1%), Current Coupon 8.25%, Secured Debt (Maturity - August 14, 2019) | 1,000 | 991 | 915 | ||||||
The SI Organization, Inc. (6) | Manufacturer of Telecom Structures and Equipment | LIBOR Plus 4.75% (Floor 1%), Current Coupon 5.75%, Secured Debt (Maturity - November 23, 2019) | 3,533 | 3,498 | 3,548 | ||||||
Sotera Defense Solutions, Inc. (6) | Defense Industry Intelligence Services | LIBOR Plus 8.50% (Floor 1.50%), Current Coupon 10.00%, Secured Debt (Maturity - April 21, 2017) | 936 | 911 | 861 | ||||||
Sutherland Global Services, Inc. (6) (9) | Business Process Outsourcing Provider | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - March 6, 2019) | 1,678 | 1,669 | 1,690 | ||||||
Synagro Infrastructure Company, Inc. (6) (9) | Waste Management Services | LIBOR Plus 5.25% (Floor 1%), Current Coupon 6.25%, Secured Debt (Maturity - August 22, 2020) | 3,985 | 3,967 | 3,965 | ||||||
TeleGuam Holdings, LLC (6) | Cable and Telecom Services Provider | LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity - December 10, 2018) | 941 | 942 | 942 | ||||||
LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity - June 10, 2019) (11) | 3,000 | 3,023 | 3,023 | ||||||||
3,965 | 3,965 | ||||||||||
Templar Energy, LLC (9) | Oil & Gas Exploration & Production | LIBOR Plus 7.00% (Floor 1%), Current Coupon 8.00%, Secured Debt (Maturity - November 25, 2020) (11) | 3,000 | 2,978 | 2,985 | ||||||
Tervita Corporation (6) (7) | Oil and Gas Environmental Services | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - May 15, 2018) | 2,487 | 2,496 | 2,500 | ||||||
The Topps Company, Inc. (6) | Trading Cards & Confectionary | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - October 2, 2018) | 995 | 986 | 985 | ||||||
Therakos, Inc. (6) | Immune System Disease Treatment | LIBOR Plus 6.25% (Floor 1.25%), Current Coupon 7.50%, Secured Debt (Maturity - December 27, 2017) | 1,450 | 1,427 | 1,461 | ||||||
ThermaSys Corporation (6) | Manufacturer of Industrial Heat Exchanges | LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity - May 3, 2019) | 1,472 | 1,457 | 1,471 | ||||||
Travel Leaders Group, LLC (6) (9) | Travel Agency Network Provider | LIBOR Plus 6.00% (Floor 1%), Current Coupon 7.00%, Secured Debt (Maturity - December 5, 2018) | 4,875 | 4,835 | 4,884 | ||||||
Universal Fiber Systems, LLC (6) | Manufacturer of Synthetic Fibers | LIBOR Plus 4.25% (Floor 1%), Current Coupon 5.25%, Secured Debt (Maturity - January 31, 2019) | 1,688 | 1,684 | 1,692 | ||||||
USJ-IMECO Holding Company, LLC (6) | Marine Interior Design and Installation | LIBOR Plus 6.00% (Floor 1%), Current Coupon 7.00%, Secured Debt (Maturity - April 16, 2020) | 4,988 | 4,963 | 4,975 | ||||||
Vantage Oncology, LLC | Outpatient Radiation Oncology Treatment Centers | 9.50% Secured Bond (Maturity - June 15, 2017) | 1,000 | 1,000 | 990 | ||||||
Visant Corporation (6) (10) | School Affinity Stores | LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity - December 22, 2016) | 2,691 | 2,682 | 2,684 | ||||||
Vision Solutions, Inc. (6) | Provider of Information Availability Software | LIBOR Plus 4.50% (Floor 1.50%), Current Coupon 6.00%, Secured Debt (Maturity - July 23, 2016) | 6,142 | 6,162 | 6,142 | ||||||
Walker & Dunlop Inc. (6) (7) | Real Estate Financial Services | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - December 20, 2020) | 746 | 739 | 759 | ||||||
YP Holdings LLC (6) | Online and Offline Advertising Operator | LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity - June 4, 2018) | 3,657 | 3,673 | 3,684 | ||||||
Total Non-Control/Non-Affiliate Investments (2) (3) (4) (100% of total Portfolio Investments at fair value) | $ | 247,943 | $ | 248,687 |
(1) | See Note 3 - Fair Value Hierarchy for Investments for summary geographic location of portfolio companies |
(2) | Non-Control/Non-Affiliate investments are defined by the Investment Company Act of 1940, as amended (the “1940 Act”) as investments that are neither Control investments nor Affiliate investments. |
(3) | Control investments are defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained. As of June 30, 2014, the Company did not own any Control investments |
(4) | Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% of the voting securities are owned, or an investment in an investment company’s investment adviser, and the investments are not classified as Control investments. As of June 30, 2014, the Company did not own any Affiliate investments. |
(5) | Principal is net of payments. Cost represents amortized cost which is net of repayments and adjusted for the amortization of premiums and/or accretion of discounts, as applicable. |
(6) | Index based floating interest rate is subject to contractual minimum interest rates. |
(7) | The investment is not a qualifying asset under the 1940 Act. A business development company (“BDC”) may not acquire any asset other than qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC's total assets. |
(8) | Lower middle market investment. |
(9) | Investment or portion of investment is under contract to purchase and met trade date accounting criteria as of June 30, 2014. Settlement occurred or is scheduled to occur after June 30, 2014. See Note 2 for summary of Security Transactions. |
(10) | Investment serviced by Main Street Partners pursuant to the Servicing Agreement. See Note 2 for summary of Investment Classification. |
(11) | Second lien secured debt investment. |
Portfolio Company (1) | Business Description | Type of Investment (1) | Principal (5) | Cost (5) | Fair Value | ||||||
Non-Control/Non-Affiliate Investments (2) | |||||||||||
ABG Intermediate Holdings 2, LLC (6) | Trademark Licensing of Clothing | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.00%, Secured Debt (Maturity - June 28, 2019) | $ | 1,500 | $ | 1,492 | $ | 1,496 | |||
Allflex Holdings III Inc. (6) (11) | Manufacturer of Livestock Identification Products | LIBOR Plus 7.00% (Floor 1%), Current Coupon 8.00%, Secured Debt (Maturity - July 19, 2021) | 950 | 969 | 964 | ||||||
Ameritech College Operations, LLC (8) (10) | For-Profit Nursing and Healthcare College | 18% Secured Debt (Maturity - March 9, 2017) | 750 | 750 | 750 | ||||||
AMF Bowling Centers, Inc. (6) | Bowling Alley Operator | LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity - June 29, 2018) | 988 | 959 | 995 | ||||||
Ancile Solutions, Inc. (6) | Provider of eLearning Solutions | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - July 15, 2018) | 1,234 | 1,224 | 1,234 | ||||||
Answers Corporation (6) (9) | Consumer Internet Search Services Provider | LIBOR Plus 5.50% (Floor 1%), Current Coupon 6.50%, Secured Debt (Maturity - December 20, 2018) | 1,500 | 1,485 | 1,485 | ||||||
Apria Healthcare Group, Inc. (6) | Home Healthcare Equipment | LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity - April 6, 2020) | 995 | 995 | 1,000 | ||||||
Artel, LLC (6) (9) | Land-Based and Commercial Satellite Provider | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - November 27, 2017) | 1,188 | 1,152 | 1,170 | ||||||
Atkins Nutritionals Holdings II, Inc. (6) | Weight Management Food Products | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - January 2, 2019) | 993 | 983 | 1,005 | ||||||
BBTS Borrower LP (6) | Oil & Gas Exploration and Midstream Services | LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity - June 4, 2019) | 1,489 | 1,482 | 1,503 | ||||||
Blackhawk Specialty Tools LLC (6) | Oilfield Equipment & Services | LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity - August 1, 2019) | 1,500 | 1,500 | 1,496 | ||||||
Bluestem Brands, Inc. (6) | Multi-Channel Retailer of General Merchandise | LIBOR Plus 6.50% (Floor 1%), Current Coupon 7.50%, Secured Debt (Maturity - December 6, 2018) | 1,000 | 980 | 990 | ||||||
California Healthcare Medical Billing, Inc. (8) (10) | Outsourced Billing & Revenue Cycle Management | 12% Secured Debt, (Maturity - October 17, 2015) | 750 | 750 | 750 | ||||||
CDC Software Corporation (6) | Enterprise Application Software | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - August 6, 2018) | 743 | 737 | 749 | ||||||
Cedar Bay Generation Company LP (6) | Coal-Fired Cogeneration Plant | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - April 23, 2020) | 885 | 876 | 892 | ||||||
Collective Brands Finance, Inc. (6) | Specialty Footwear Retailer | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - October 19, 2019) | 496 | 496 | 499 | ||||||
e-Rewards, Inc. (6) | Provider of Digital Data Collection | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.00%, Secured Debt (Maturity - October 29, 2018) | 1,000 | 980 | 994 | ||||||
Excelitas Technologies Corp. (6) | Lighting and Sensor Components | LIBOR Plus 5.00% (Floor 1%), Current Coupon 6.00%, Secured Debt (Maturity - November 2, 2020) | 989 | 980 | 997 | ||||||
Fender Musical Instruments Corporation (6) | Manufacturer of Musical Instruments | LIBOR Plus 4.50% (Floor 1.25%), Current Coupon 5.75%, Secured Debt (Maturity - April 3, 2019) | 448 | 443 | 455 | ||||||
FishNet Security, Inc. (6) | Information Technology Value-Added Reseller | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - November 30, 2017) | 1,980 | 1,963 | 1,989 | ||||||
Fram Group Holdings, Inc. (6) (9) | Manufacturer of Automotive Maintenance Products | LIBOR Plus 5.00% (Floor 1.50%), Current Coupon 6.50%, Secured Debt (Maturity - July 31, 2017) | 1,500 | 1,489 | 1,489 | ||||||
Getty Images, Inc. (6) | Digital Photography and Video Content Marketplace | LIBOR Plus 3.50% (Floor 1.25%), Current Coupon 4.75%, Secured Debt (Maturity - October 18, 2019) | 997 | 895 | 933 | ||||||
Golden Nugget, Inc. (6) | Hotels & Casinos in Las Vegas and Louisiana | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - November 21, 2019) | 700 | 693 | 712 | ||||||
iEnergizer Limited (6) (7) (9) | Provider of Business Outsourcing Solutions | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - May 1, 2019) | 1,437 | 1,413 | 1,417 | ||||||
Inn of the Mountain Gods Resort and Casino | Hotel & Casino | 9.25% Secured Bond (Maturity - November 30, 2020) | 1,000 | 955 | 968 | ||||||
Ipreo Holdings LLC (6) (9) | Application Software for Capital Markets | LIBOR Plus 4.00% (Floor 1%), Current Coupon 5.00%, Secured Debt (Maturity - August 5, 2017) | 732 | 732 | 743 | ||||||
Jackson Hewitt Tax Service Inc. (6) | Tax Preparation Services | LIBOR Plus 8.50% (Floor 1.50%), Current Coupon 10.00%, Secured Debt (Maturity - October 16, 2017) | 1,000 | 1,000 | 995 | ||||||
Joernes Healthcare, LLC (6) | Health Care Equipment & Supplies | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - March 28, 2018) | 993 | 984 | 973 | ||||||
Keypoint Government Solutions, Inc. (6) | Pre-Employment Screening Services | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - November 13, 2017) | 920 | 915 | 910 | ||||||
Larchmont Resources, LLC (6) | Oil & Gas Exploration & Production | LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity - August 7, 2019) | 746 | 750 | 760 | ||||||
Learning Care Group (US) No. 2 Inc. (6) | Provider of Early Childhood Education | LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity - May 8, 2019) | 998 | 988 | 1,004 | ||||||
LJ Host Merger Sub, Inc. (6) (9) | Managed Services and Hosting Provider | LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity - December 13, 2019) | 1,000 | 990 | 995 | ||||||
LIBOR Plus 8.75% (Floor 1.25%), Current Coupon 10.00%, Secured Debt (Maturity - December 11, 2020) (11) | 500 | 490 | 498 | ||||||||
1,480 | 1,493 | ||||||||||
MAH Merger Corporation (6) | Sports-Themed Casual Dining Chain | LIBOR Plus 4.50% (Floor 1.25%), Current Coupon 5.75%, Secured Debt (Maturity - July 19, 2019) | 1,500 | 1,500 | 1,493 | ||||||
MediMedia USA, Inc. (6) | Provider of Health Care Media and Marketing | LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity - November 20, 2018) | 995 | 967 | 973 | ||||||
MedSolutions Holdings, Inc. (6) | Specialty Benefit Management | LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity - July 8, 2019) | 975 | 966 | 974 | ||||||
Mitel US Holdings, Inc. (6) | Manufacturer of Battery Components | LIBOR Plus 5.75% (Floor 1.25%), Current Coupon 7.00%, Secured Debt (Maturity - December 19, 2019) | 893 | 884 | 896 | ||||||
MP Assets Corporation (6) | Manufacturer of Battery Components | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - December 19, 2019) | 1,000 | 990 | 998 | ||||||
National Vision, Inc. (6) | Discount Optical Retailer | LIBOR Plus 5.75% (Floor 1.25%), Current Coupon 7.00%, Secured Debt (Maturity - August 2, 2018) | 730 | 721 | 732 | ||||||
Neenah Foundry Company (6) | Operator of Iron Foundries | LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity - August 26, 2017) | 12 | 12 | 12 | ||||||
NRC US Holding Company LLC (6) | Environmental Services Provider | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - July 30, 2019) | 975 | 970 | 977 | ||||||
Orbitz Worldwide, Inc. (6) (7) | Online Travel Agent | LIBOR Plus 4.75% (Floor 1%), Current Coupon 5.75%, Secured Debt (Maturity - March 25, 2019) | 498 | 498 | 500 | ||||||
Panolam Industries International, Inc. (6) | Decorative Laminate Manufacturer | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - August 23, 2017) | 905 | 897 | 875 | ||||||
Permian Holdings, Inc. | Storage Tank Manufacturer | 10.50% Secured Bond (Maturity - January 15, 2018) | 910 | 888 | 896 | ||||||
Pitney Bowes Management Services Inc. (6) | Provider of Document Management Services | LIBOR Plus 6.25% (Floor 1.25%), Current Coupon 7.50%, Secured Debt (Maturity - October 1, 2019) | 998 | 988 | 1,005 | ||||||
Polyconcept Financial B.V. (6) | Promotional Products to Corporations and Consumers | LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity - June 28, 2019) | 975 | 966 | 979 | ||||||
Ravago Holdings America, Inc. (6) (9) | Polymers Distributor | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - December 20, 2020) | 1,250 | 1,238 | 1,253 | ||||||
Relativity Media, LLC | Full-scale Film and Television Production and Distribution | 10.00% Secured Debt (Maturity - May 30, 2015) | 1,976 | 1,976 | 1,976 | ||||||
SCE Partners, LLC (6) | Hotel & Casino Operator | LIBOR Plus 7.25% (Floor 1%), Current Coupon 8.25%, Secured Debt (Maturity - August 14, 2019) | 1,000 | 990 | 930 | ||||||
Sotera Defense Solutions, Inc. (6) | Defense Industry Intelligence Services | LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity - April 21, 2017) | 944 | 913 | 849 | ||||||
Sutherland Global Services, Inc. (6) | Business Process Outsourcing Provider | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - March 6, 2019) | 963 | 945 | 965 | ||||||
Synagro Infrastructure Company, Inc. (6) | Waste Management Services | LIBOR Plus 5.25% (Floor 1%), Current Coupon 6.25%, Secured Debt (Maturity - August 22, 2020) | 998 | 978 | 989 | ||||||
TeleGuam Holdings, LLC (6) | Cable and Telecom Services Provider | LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity - December 10, 2018) | 499 | 499 | 498 | ||||||
LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity - June 10, 2019) (11) | 1,000 | 1,006 | 1,005 | ||||||||
1,505 | 1,503 | ||||||||||
Tervita Corporation (6) (7) | Oil and Gas Environmental Services | LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - May 15, 2018) | 996 | 990 | 1,002 | ||||||
The Topps Company, Inc. (6) | Trading Cards & Confectionary | LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - October 2, 2018) | 1,000 | 990 | 1,003 | ||||||
Therakos, Inc. (6) | Immune System Disease Treatment | LIBOR Plus 6.25% (Floor 1.25%), Current Coupon 7.50%, Secured Debt (Maturity - December 27, 2017) | 1,489 | 1,460 | 1,494 | ||||||
ThermaSys Corporation (6) | Manufacturer of Industrial Heat Exchanges | LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity - May 3, 2019) | 1,500 | 1,482 | 1,489 | ||||||
Totes Isotoner Corporation (6) | Weather Accessory Retail | LIBOR Plus 5.75% (Floor 1.50%), Current Coupon 7.25%, Secured Debt (Maturity - July 7, 2017) | 944 | 952 | 949 | ||||||
Travel Leaders Group, LLC (6) | Travel Agency Network Provider | LIBOR Plus 6.00% (Floor 1%), Current Coupon 7.00%, Secured Debt (Maturity - December 5, 2018) | 1,500 | 1,470 | 1,481 | ||||||
Universal Fiber Systems, LLC (6) | Manufacturer of Synthetic Fibers | LIBOR Plus 5.75% (Floor 1.75%), Current Coupon 7.50%, Secured Debt (Maturity - June 26, 2015) | 1,699 | 1,678 | 1,707 | ||||||
Vantage Oncology, LLC | Outpatient Radiation Oncology Treatment Centers | 9.50% Secured Bond (Maturity - August 7, 2017) | 1,000 | 1,000 | 1,030 | ||||||
Visant Corporation (6) (10) | School Affinity Stores | LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity - December 22, 2016) | 691 | 691 | 683 | ||||||
Vision Solutions, Inc. (6) | Provider of Information Availability Software | LIBOR Plus 4.50% (Floor 1.50%), Current Coupon 6.00%, Secured Debt (Maturity - July 23, 2016) | 1,000 | 990 | 1,004 | ||||||
Walker & Dunlop Inc. (6) (7) (9) | Real Estate Financial Services | LIBOR Plus 4.50% (Floor 1%), Current Coupon 5.50%, Secured Debt (Maturity - December 20, 2020) | 750 | 743 | 746 | ||||||
YP Holdings LLC (6) | Online and Offline Advertising Operator | LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity - June 4, 2018) | 700 | 682 | 709 | ||||||
Total Non-Control/Non-Affiliate Investments (2) (3) (4) (100% of total Portfolio Investments at fair value) | $ | 66,410 | $ | 66,882 |
(1) | See Note 3 - Fair Value Hierarchy for Investments for summary geographic location of portfolio companies |
(2) | Non-Control/Non-Affiliate investments are defined by the Investment Company Act of 1940, as amended (the “1940 Act”) as investments that are neither Control investments nor Affiliate investments. |
(3) | Control investments are defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained. As of December 31, 2013, the Company did not own any Control investments |
(4) | Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% of the voting securities are owned, or an investment in an investment company’s investment adviser, and the investments are not classified as Control investments. As of December 31, 2013, the Company did not own any Affiliate investments. |
(5) | Principal is net of payments. Cost represents amortized cost which is net of repayments and adjusted for the amortization of premiums and/or accretion of discounts, as applicable. |
(6) | Index based floating interest rate is subject to contractual minimum interest rates. |
(7) | The investment is not a qualifying asset under the 1940 Act. A business development company (“BDC”) may not acquire any asset other than qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC's total assets. |
(8) | Lower middle market investment. |
(9) | Investment is under contract to purchase and met trade date accounting criteria as of December 31, 2013. Settlement occurred after December 31, 2013. See Note 2 for summary of Security Transactions. |
(10) | Investment serviced by Main Street Partners pursuant to the Servicing Agreement. See Note 2 for summary of Investment Classification. |
(11) | Second lien secured debt investment. |
• | Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. |
• | Level 2—Valuations based on inputs other than quoted prices in active markets, which are either directly or indirectly observable for essentially the full term of the investment. Level 2 inputs include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in non-active markets (for example, thinly traded public companies), pricing models whose inputs are observable for substantially the full term of the investment, and pricing models whose inputs are derived principally from or corroborated by, observable market data through correlation or other means for substantially the full term of the investment. |
• | Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Such information may be the result of consensus pricing information or broker quotes for which sufficient observable inputs were not available. |
• | Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers; |
• | Current and projected financial condition of the portfolio company; |
• | Current and projected ability of the portfolio company to service its debt obligations; |
• | Type and amount of collateral, if any, underlying the investment; |
• | Current financial ratios (e.g., fixed charge coverage ratio, interest coverage ratio, and net debt/EBITDA ratio) applicable to the investment; |
• | Current liquidity of the investment and related financial ratios (e.g., current ratio and quick ratio); |
• | Pending debt or capital restructuring of the portfolio company; |
• | Projected operating results of the portfolio company; |
• | Current information regarding any offers to purchase the investment; |
• | Current ability of the portfolio company to raise any additional financing as needed; |
• | Changes in the economic environment which may have a material impact on the operating results of the portfolio company; |
• | Internal occurrences that may have an impact (both positive and negative) on the operating performance of the portfolio company; |
• | Qualitative assessment of key management; |
• | Contractual rights, obligations or restrictions associated with the investment; |
• | Third party pricing for securities with limited observability of inputs determining the pricing; and |
• | Other factors deemed relevant. |
Fair Value Measurements | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
First lien secured debt investment | $ | — | $ | — | 224,656 | $ | 224,656 | ||||||||
Second lien secured debt investment | — | — | 23,361 | 23,361 | |||||||||||
LMM equity investment | — | — | 670 | 670 | |||||||||||
Total | $ | — | $ | — | $ | 248,687 | $ | 248,687 |
Fair Value Measurements | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
First lien secured debt investment | $ | — | $ | 4,728 | $ | 59,686 | $ | 64,414 | |||||||
Second lien secured debt investment | — | — | 2,468 | 2,468 | |||||||||||
Total | $ | — | $ | 4,728 | $ | 62,154 | $ | 66,882 |
Fair Value Measurements | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
LMM portfolio investments | $ | — | $ | — | $ | 3,430 | $ | 3,430 | |||||||
Private placement investments | — | — | 245,257 | 245,257 | |||||||||||
Total | $ | — | $ | — | $ | 248,687 | $ | 248,687 |
Fair Value Measurements | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
LMM portfolio investments | $ | — | $ | — | $ | 1,500 | $ | 1,500 | |||||||
Private placement investments | — | 4,728 | 60,654 | 65,382 | |||||||||||
Total | $ | — | $ | 4,728 | $ | 62,154 | $ | 66,882 |
Fair Value | Valuation Technique | Significant Unobservable Input | Range | Weighted Average | ||||||||
LMM equity investments | $ | 670 | Market Approach | Recent Transactions | — | — | % | |||||
LMM debt portfolio investments | $ | 2,760 | Discounted Cash Flows | Expected Principal Recovery | — | 100 | % | |||||
Risk Adjusted Discount Factor | 9% - 18% | 12.1 | % | |||||||||
Private placement investments | $ | 245,257 | Market Approach | Third Party Quotes | 92% - 103% | 100 | % | |||||
$ | 248,687 |
Fair Value | Valuation Technique | Significant Unobservable Input | Range | Weighted Average | ||||||||
LMM debt portfolio investments | $ | 1,500 | Discounted Cash Flows | Expected Principal Recovery | — | 100 | % | |||||
Risk Adjusted Discount Factor | 12% - 18% | 15.0 | % | |||||||||
Private placement investments | $ | 60,654 | Market Approach | Third Party Quotes | 88% - 103% | 99.7 | % | |||||
$ | 62,154 |
Type of Investment | January 1, 2014 Fair Value | Transfers Into Level 3 Hierarchy | Payment-in-Kind Interest Accrual | New Investments (1) | Sales/ Repayments | Net Unrealized Appreciation (Depreciation) | Net Realized Gain (Loss) | June 30, 2014 Fair Value | |||||||||||||||||||||||
LMM Equity | $ | — | $ | — | $ | — | $ | 670 | $ | — | $ | — | $ | — | $ | 670 | |||||||||||||||
LMM Debt | 1,500 | — | — | 1,254 | — | 6 | — | 2,760 | |||||||||||||||||||||||
Private Placement | 60,654 | 4,728 | 44 | 209,322 | (29,908 | ) | 266 | 151 | 245,257 | ||||||||||||||||||||||
Total | $ | 62,154 | $ | 4,728 | $ | 44 | $ | 211,246 | $ | (29,908 | ) | $ | 272 | $ | 151 | $ | 248,687 |
Investments at Cost | Cost Percentage of Total Portfolio | Investments at Fair Value | Fair Value Percentage of Total Portfolio | ||||||||||
First lien secured debt investment | $ | 223,997 | 90.3 | % | $ | 224,656 | 90.3 | % | |||||
Second lien secured debt investment | 23,276 | 9.4 | % | 23,361 | 9.4 | % | |||||||
LMM equity investment | 670 | 0.3 | % | 670 | 0.3 | % | |||||||
Total | $ | 247,943 | 100.0 | % | $ | 248,687 | 100.0 | % |
Investments at Cost | Cost Percentage of Total Portfolio | Investments at Fair Value | Fair Value Percentage of Total Portfolio | ||||||||||
First lien secured debt investment | $ | 63,945 | 96.3 | % | $ | 64,414 | 96.3 | % | |||||
Second lien secured debt investment | 2,465 | 3.7 | % | 2,468 | 3.7 | % | |||||||
Total | $ | 66,410 | 100.0 | % | $ | 66,882 | 100.0 | % |
Investments at Cost | Cost Percentage of Total Portfolio | Investments at Fair Value | Fair Value Percentage of Total Portfolio | ||||||||||
Northeast | $ | 67,258 | 27.1 | % | $ | 67,543 | 27.2 | % | |||||
Southeast | 51,003 | 20.6 | % | 51,208 | 20.6 | % | |||||||
Southwest | 42,549 | 17.2 | % | 42,721 | 17.2 | % | |||||||
West | 40,269 | 16.2 | % | 40,347 | 16.2 | % | |||||||
Midwest | 34,801 | 14.0 | % | 34,866 | 14.0 | % | |||||||
Non-United States | 12,063 | 4.9 | % | 12,002 | 4.8 | % | |||||||
Total | $ | 247,943 | 100.0 | % | $ | 248,687 | 100.0 | % |
Investments at Cost | Cost Percentage of Total Portfolio | Investments at Fair Value | Fair Value Percentage of Total Portfolio | ||||||||||
Northeast | $ | 20,459 | 30.8 | % | $ | 20,611 | 30.8 | % | |||||
Southwest | 9,545 | 14.4 | % | 9,645 | 14.4 | % | |||||||
West | 9,254 | 13.9 | % | 9,358 | 14.0 | % | |||||||
Southeast | 11,674 | 17.6 | % | 11,771 | 17.6 | % | |||||||
Midwest | 11,569 | 17.4 | % | 11,575 | 17.3 | % | |||||||
Non-United States | 3,909 | 5.9 | % | 3,922 | 5.9 | % | |||||||
Total | $ | 66,410 | 100.0 | % | $ | 66,882 | 100.0 | % |
Cost: | June 30, 2014 | December 31, 2013 | |||
Media | 8.9 | % | 6.7 | % | |
Electronic Equipment, Instruments & Components | 8.5 | % | 3.0 | % | |
IT Services | 7.5 | % | 11.2 | % | |
Hotels, Restaurants, and Leisure | 7.1 | % | 5.4 | % | |
Health Care Providers and Services | 6.7 | % | 5.6 | % | |
Internet Software and Services | 5.2 | % | 5.9 | % | |
Chemicals | 4.2 | % | 1.9 | % | |
Specialty Retail | 3.3 | % | 6.6 | % | |
Textiles, Apparel, & Luxury Goods | 3.1 | % | 4.0 | % | |
Diversified Consumer Services | 3.0 | % | 4.1 | % | |
Commercial Services and Supplies | 3.0 | % | 2.9 | % | |
Oil, Gas, and Consumable Fuels | 3.0 | % | 4.7 | % | |
Application Software | 2.8 | % | — | % | |
Software | 2.8 | % | 3.7 | % | |
Energy Equipment and Services | 2.5 | % | 3.7 | % | |
Data Processing and Outsourced Services | 2.4 | % | 2.2 | % | |
Automobiles | 2.4 | % | — | % | |
Food Products | 2.1 | % | 1.5 | % | |
Healthcare Technology | 2.0 | % | — | % | |
Marine | 2.0 | % | — | % | |
Aerospace and Defense | 1.8 | % | 1.7 | % | |
Health Care Equipment and Supplies | 1.8 | % | 1.5 | % | |
Household Products | 1.7 | % | — | % | |
Advertising | 1.5 | % | 1.0 | % | |
Auto Components | 1.4 | % | 2.2 | % | |
Oil and Gas Exploration and Production | 1.2 | % | — | % | |
Professional Services | 1.1 | % | 2.8 | % | |
Containers and Packaging | 1.0 | % | — | % | |
Diversified Telecommunicaton Services | 0.8 | % | — |