UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended SeptemberJune 30, 20212022
OR
| |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number: 814-00866
MONROE CAPITAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Maryland | 27-4895840 | |
(State or Other Jurisdiction of | (I.R.S. Employer Identification No.) | |
311 South Wacker Drive, Suite 6400 Chicago, Illinois | 60606 | |
(Address of Principal Executive Office) | (Zip Code) |
(312) (312) 258-8300
(Registrant’s Telephone Number, Including Area Code)
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 | MRCC | The Nasdaq Global Select Market |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x☒ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§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 x☒ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x☒
As of NovemberAugust 1, 2021,2022, the registrant had 21,543,54021,666,340 shares of common stock, $0.001 par value, outstanding.
TABLE OF CONTENTS
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Management’s Discussion and Analysis of Financial Condition and Results of Operations | 73 | ||
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2
Part I. Financial Information
Item 1. Consolidated Financial Statements
MONROE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share data)
| | | | | | |
|
| June 30, 2022 |
| December 31, 2021 | ||
| | (unaudited) | | | | |
ASSETS |
| |
|
| |
|
Investments, at fair value: |
| |
|
| |
|
Non-controlled/non-affiliate company investments | | $ | 407,457 | | $ | 430,287 |
Non-controlled affiliate company investments | |
| 91,031 | |
| 90,281 |
Controlled affiliate company investments | |
| 37,551 | |
| 41,125 |
Total investments, at fair value (amortized cost of: $567,129 and $576,178, respectively) | |
| 536,039 | |
| 561,693 |
Cash | |
| 5,969 | |
| 2,622 |
Restricted cash | |
| — | |
| 15,459 |
Unrealized gain on foreign currency forward contracts | |
| 1,421 | |
| 781 |
Interest receivable | |
| 12,302 | |
| 9,476 |
Other assets | |
| 600 | |
| 427 |
Total assets | |
| 556,331 | |
| 590,458 |
| | | | | | |
LIABILITIES | |
|
| |
|
|
Debt: | |
|
| |
|
|
Revolving credit facility | |
| 190,000 | |
| 151,045 |
2026 Notes | |
| 130,000 | |
| 130,000 |
SBA debentures payable | |
| — | |
| 56,900 |
Total debt | |
| 320,000 | |
| 337,945 |
Less: Unamortized deferred financing costs | |
| (3,743) | |
| (5,794) |
Total debt, less unamortized deferred financing costs | |
| 316,257 | |
| 332,151 |
Interest payable | |
| 2,759 | |
| 3,304 |
Management fees payable | |
| 2,269 | |
| 2,454 |
Incentive fees payable | |
| 657 | |
| 435 |
Accounts payable and accrued expenses | |
| 2,268 | |
| 2,643 |
Total liabilities | |
| 324,210 | |
| 340,987 |
Net assets | | $ | 232,121 | | $ | 249,471 |
| | | | | | |
Commitments and contingencies (See Note 11) | |
|
| |
|
|
| | | | | | |
ANALYSIS OF NET ASSETS | |
|
| |
|
|
Common stock, $0.001 par value, 100,000 shares authorized, 21,666 and 21,666 shares issued and outstanding, respectively | | $ | 22 | | $ | 22 |
Capital in excess of par value | |
| 298,687 | |
| 298,687 |
Accumulated undistributed (overdistributed) earnings | |
| (66,588) | |
| (49,238) |
Total net assets | | $ | 232,121 | | $ | 249,471 |
| | | | | | |
Net asset value per share | | $ | 10.71 | | $ | 11.51 |
| September 30, 2021 | December 31, 2020 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Investments, at fair value: | ||||||||
| Non-controlled/non-affiliate company investments | $ | 416,667 | $ | 398,040 | ||||
| Non-controlled affiliate company investments | 95,746 | 109,715 | ||||||
| Controlled affiliate company investments | 41,331 | 39,284 | ||||||
| Total investments, at fair value (amortized cost of: $582,828 and $596,103, respectively) | 553,744 | 547,039 | ||||||
| Cash | 7,031 | 6,769 | ||||||
| Restricted cash | 8,045 | 25,657 | ||||||
| Unrealized gain on foreign currency forward contracts | 863 | — | ||||||
| Interest receivable | 9,389 | 4,606 | ||||||
| Other assets | 379 | 1,052 | ||||||
| Total assets | 579,451 | 585,123 | ||||||
| LIABILITIES | ||||||||
| Debt: | ||||||||
| Revolving credit facility | 144,425 | 126,559 | ||||||
| 2023 Notes | — | 109,000 | ||||||
| 2026 Notes | 130,000 | — | ||||||
| SBA debentures payable | 56,900 | 115,000 | ||||||
| Total debt | 331,325 | 350,559 | ||||||
| Less: Unamortized deferred financing costs | (6,318 | ) | (7,052 | ) | ||||
| Total debt, less unamortized deferred financing costs | 325,007 | 343,507 | ||||||
| Interest payable | 1,334 | 2,764 | ||||||
| Unrealized loss on foreign currency forward contracts | — | 113 | ||||||
| Management fees payable | 2,399 | 1,978 | ||||||
| Incentive fees payable | 1,578 | — | ||||||
| Accounts payable and accrued expenses | 2,448 | 2,327 | ||||||
| Directors' fees payable | 35 | — | ||||||
| Total liabilities | 332,801 | 350,689 | ||||||
| Net assets | $ | 246,650 | $ | 234,434 | ||||
| Commitments and contingencies (See Note 11) | ||||||||
| ANALYSIS OF NET ASSETS | ||||||||
| Common stock, $0.001 par value, 100,000 shares authorized, 21,544 and 21,304 shares issued and outstanding, respectively | $ | 22 | $ | 21 | ||||
| Capital in excess of par value | 297,586 | 294,897 | ||||||
| Accumulated undistributed (overdistributed) earnings | (50,958 | ) | (60,484 | ) | ||||
| Total net assets | $ | 246,650 | $ | 234,434 | ||||
| Net asset value per share | $ | 11.45 | $ | 11.00 | ||||
See Notes to Consolidated Financial Statements.
3
MONROE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
| | | | | | | | | | | | | ||||||||||||||||
| | Three months ended June 30, | | Six months ended June 30, | ||||||||||||||||||||||||
| | 2022 | | 2021 | | 2022 | | 2021 | ||||||||||||||||||||
| Investment income: |
| |
|
| |
|
| |
|
| |
| ||||||||||||||||
| Non-controlled/non-affiliate company investments: |
| |
|
| |
|
| |
|
| |
| ||||||||||||||||
| Interest income | $ | 8,495 | $ | 9,992 | $ | 24,807 | $ | 36,800 | | $ | 7,992 | | $ | 8,079 | | $ | 16,647 | | $ | 16,312 | ||||||||
| Payment-in-kind interest income | 405 | 553 | 1,286 | 1,479 | |
| 644 | |
| 227 | |
| 1,301 | |
| 881 | ||||||||||||
| Dividend income | 234 | 5 | 284 | (71 | ) | |
| 100 | |
| 30 | |
| 164 | |
| 50 | |||||||||||
| Fee income | 288 | 26 | 1,065 | 3,047 | |
| 1,192 | |
| 300 | |
| 1,192 | |
| 777 | ||||||||||||
| Total investment income from non-controlled/non-affiliate company investments | 9,422 | 10,576 | 27,442 | 41,255 | |
| 9,928 | |
| 8,636 | |
| 19,304 | |
| 18,020 | ||||||||||||
| Non-controlled affiliate company investments: | |
|
| |
|
| |
|
| |
|
| ||||||||||||||||
| Interest income | 1,561 | 659 | 4,225 | 894 | |
| 1,366 | |
| 1,102 | |
| 2,372 | |
| 2,664 | ||||||||||||
| Payment-in-kind interest income | 2,508 | 1,010 | 5,040 | 3,624 | |
| 753 | |
| 1,507 | |
| 1,917 | |
| 2,532 | ||||||||||||
| Dividend income | 698 | 40 | 784 | 106 | |
| 48 | |
| 44 | |
| 93 | |
| 86 | ||||||||||||
| Total investment income from non-controlled affiliate company investments | 4,767 | 1,709 | 10,049 | 4,624 | |
| 2,167 | |
| 2,653 | |
| 4,382 | |
| 5,282 | ||||||||||||
| Controlled affiliate company investments: | |
|
| |
|
| |
|
| |
|
| ||||||||||||||||
| Dividend income | 1,025 | 1,100 | 3,300 | 3,150 | |
| 900 | |
| 1,075 | |
| 1,800 | |
| 2,275 | ||||||||||||
| Total investment income from controlled affiliate company investments | 1,025 | 1,100 | 3,300 | 3,150 | |
| 900 | |
| 1,075 | |
| 1,800 | |
| 2,275 | ||||||||||||
| Total investment income | 15,214 | 13,385 | 40,791 | 49,029 | |
| 12,995 | |
| 12,364 | |
| 25,486 | |
| 25,577 | ||||||||||||
| | | | | | | | | | | | | ||||||||||||||||
| Operating expenses: | |
|
| |
|
| |
|
| |
|
| ||||||||||||||||
| Interest and other debt financing expenses | 3,924 | 4,358 | 12,219 | 13,743 | |
| 3,776 | |
| 3,842 | |
| 7,698 | |
| 8,295 | ||||||||||||
| Base management fees | 2,399 | 2,414 | 7,060 | 7,399 | |
| 2,269 | |
| 2,327 | |
| 4,612 | |
| 4,661 | ||||||||||||
| Incentive fees | 1,578 | — | 2,828 | — | |
| 774 | |
| 420 | |
| 1,182 | |
| 1,250 | ||||||||||||
| Professional fees | 264 | 201 | 730 | 738 | |
| 248 | |
| 240 | |
| 528 | |
| 466 | ||||||||||||
| Administrative service fees | 327 | 321 | 1,020 | 973 | |
| 303 | |
| 337 | |
| 633 | |
| 693 | ||||||||||||
| General and administrative expenses | 304 | 284 | 833 | 729 | |
| 287 | |
| 269 | |
| 506 | |
| 529 | ||||||||||||
| Directors' fees | 35 | 38 | 109 | 113 | ||||||||||||||||||||||||
| Expenses before incentive fee waivers | 8,831 | 7,616 | 24,799 | 23,695 | ||||||||||||||||||||||||
Directors’ fees | |
| 39 | |
| 39 | |
| 74 | |
| 74 | ||||||||||||||||
Expenses before base management fee and incentive fee waivers | |
| 7,696 | |
| 7,474 | |
| 15,233 | |
| 15,968 | ||||||||||||||||
Base management fee waivers | |
| — | |
| — | |
| (55) | |
| — | ||||||||||||||||
| Incentive fee waivers | — | — | (1,057 | ) | — | |
| (117) | |
| (420) | |
| (525) | |
| (1,057) | |||||||||||
| Total expenses, net of incentive fee waivers | 8,831 | 7,616 | 23,742 | 23,695 | ||||||||||||||||||||||||
Total expenses, net of base management fee and incentive fee waivers | |
| 7,579 | |
| 7,054 | |
| 14,653 | |
| 14,911 | ||||||||||||||||
| Net investment income before income taxes | 6,383 | 5,769 | 17,049 | 25,334 | |
| 5,416 | |
| 5,310 | |
| 10,833 | |
| 10,666 | ||||||||||||
| Income taxes, including excise taxes | 71 | 125 | 254 | 272 | |
| 402 | |
| 153 | |
| 421 | |
| 183 | ||||||||||||
| Net investment income | 6,312 | 5,644 | 16,795 | 25,062 | |
| 5,014 | |
| 5,157 | |
| 10,412 | |
| 10,483 | ||||||||||||
| | | | | | | | | | | | | ||||||||||||||||
| Net gain (loss): | |
|
| |
|
| |
|
| |
|
| ||||||||||||||||
| Net realized gain (loss): | |
|
| |
|
| |
|
| |
|
| ||||||||||||||||
| Non-controlled/non-affiliate company investments | (9,435 | ) | (10 | ) | (8,468 | ) | 2,545 | |
| 20 | |
| 909 | |
| (83) | |
| 967 | |||||||||
| Non-controlled affiliate company investments | — | — | (250 | ) | — | |
| — | |
| — | |
| — | |
| (250) | |||||||||||
| Extinguishment of debt | (336 | ) | — | (3,110 | ) | — | |
| — | |
| — | |
| (1,039) | |
| (2,774) | ||||||||||
| Foreign currency forward contracts | 20 | (15 | ) | (55 | ) | 3 | |
| 19 | |
| (37) | |
| 31 | |
| (75) | ||||||||||
| Foreign currency and other transactions | (880 | ) | 3 | (894 | ) | (13 | ) | |
| (28) | |
| — | |
| (37) | |
| (14) | |||||||||
| Net realized gain (loss) | (10,631 | ) | (22 | ) | (12,777 | ) | 2,535 | |
| 11 | |
| 872 | |
| (1,128) | |
| (2,146) | |||||||||
| | | | | | | | | | | | | ||||||||||||||||
| Net change in unrealized gain (loss): | |
|
| |
|
| |
|
| |
|
| ||||||||||||||||
| Non-controlled/non-affiliate company investments | 11,222 | 3,048 | 20,106 | (22,527 | ) | |
| (9,375) | |
| 4,243 | |
| (11,232) | |
| 8,884 | |||||||||||
| Non-controlled affiliate company investments | (1,076 | ) | 5,456 | (2,173 | ) | (8,153 | ) | |
| (910) | |
| 705 | |
| (1,299) | |
| (1,097) | |||||||||
| Controlled affiliate company investments | (54 | ) | 1,969 | 2,047 | (4,888 | ) | |
| (3,159) | |
| 318 | |
| (4,074) | |
| 2,101 | ||||||||||
| Foreign currency forward contracts | 530 | (55 | ) | 976 | 19 | |
| 1,056 | |
| 112 | |
| 640 | |
| 446 | |||||||||||
| Foreign currency and other transactions | 936 | (855 | ) | 650 | 521 | |
| (1) | |
| (77) | |
| 164 | |
| (286) | |||||||||||
| Net change in unrealized gain (loss) | 11,558 | 9,563 | 21,606 | (35,028 | ) | |
| (12,389) | |
| 5,301 | |
| (15,801) | |
| 10,048 | |||||||||||
| | | | | | | | | | | | | ||||||||||||||||
| Net gain (loss) | 927 | 9,541 | 8,829 | (32,493 | ) | |
| (12,378) | |
| 6,173 | |
| (16,929) | |
| 7,902 | |||||||||||
| | | | | | | | | | | | | ||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 7,239 | $ | 15,185 | $ | 25,624 | $ | (7,431 | ) | | $ | (7,364) | | $ | 11,330 | | $ | (6,517) | | $ | 18,385 | |||||||
| | | | | | | | | | | | | ||||||||||||||||
| Per common share data: | |
|
| |
|
| |
|
| |
|
| ||||||||||||||||
| Net investment income per share - basic and diluted | $ | 0.29 | $ | 0.26 | $ | 0.78 | $ | 1.21 | | $ | 0.23 | | $ | 0.24 | | $ | 0.48 | | $ | 0.49 | ||||||||
| Net increase (decrease) in net assets resulting from operations per share - basic and diluted | $ | 0.34 | $ | 0.71 | $ | 1.20 | $ | (0.36 | ) | | $ | (0.34) | | $ | 0.53 | | $ | (0.30) | | $ | 0.86 | |||||||
| Weighted average common shares outstanding - basic and diluted | 21,544 | 21,303 | 21,404 | 20,797 | |
| 21,666 | |
| 21,361 | |
| 21,666 | |
| 21,333 | ||||||||||||
See Notes to Consolidated Financial Statements.
4
MONROE CAPITAL CORPORATION
| Common Stock | Accumulated undistributed | |||||||||||||||||||
| Number of shares | Par value | Capital in excess of par value | (overdistributed) earnings | Total net assets | ||||||||||||||||
| Balances at June 30, 2020 | 21,270 | $ | 21 | $ | 295,116 | $ | (74,541 | ) | $ | 220,596 | ||||||||||
| Net investment income | — | — | — | 5,644 | 5,644 | |||||||||||||||
| Net realized gain (loss) | — | — | — | (22 | ) | (22 | ) | |||||||||||||
| Net change in unrealized gain (loss) | — | — | — | 9,563 | 9,563 | |||||||||||||||
| Issuance of common stock, net of offering and underwriting costs | 34 | — | 228 | — | 228 | |||||||||||||||
| Distributions to stockholders | — | — | — | (5,326 | ) | (5,326 | ) | |||||||||||||
| Balances at September 30, 2020 | 21,304 | $ | 21 | $ | 295,344 | $ | (64,682 | ) | $ | 230,683 | ||||||||||
| Balances at June 30, 2021 | 21,544 | $ | 22 | $ | 297,586 | $ | (52,811 | ) | $ | 244,797 | ||||||||||
| Net investment income | — | — | — | 6,312 | 6,312 | |||||||||||||||
| Net realized gain (loss) | — | — | — | (10,631 | ) | (10,631 | ) | |||||||||||||
| Net change in unrealized gain (loss) | — | — | — | 11,558 | 11,558 | |||||||||||||||
| Issuance of common stock, net of offering and underwriting costs | — | — | — | — | — | |||||||||||||||
| Distributions to stockholders | — | — | — | (5,386 | ) | (5,386 | ) | |||||||||||||
| Balances at September 30, 2021 | 21,544 | $ | 22 | $ | 297,586 | $ | (50,958 | ) | $ | 246,650 | ||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
| Common Stock | Accumulated undistributed | |||||||||||||||||||
| Number of shares | Par value | Capital in excess of par value | (overdistributed) earnings | Total net assets | ||||||||||||||||
| Balances at December 31, 2019 | 20,445 | $ | 20 | $ | 288,850 | $ | (39,513 | ) | $ | 249,357 | ||||||||||
| Net investment income | — | �� | — | — | 25,062 | 25,062 | ||||||||||||||
| Net realized gain (loss) | — | — | — | 2,535 | 2,535 | |||||||||||||||
| Net change in unrealized gain (loss) | — | — | — | (35,028 | ) | (35,028 | ) | |||||||||||||
| Issuance of common stock, net of offering and underwriting costs | 859 | 1 | 6,494 | — | 6,495 | |||||||||||||||
| Distributions to stockholders | — | — | — | (17,738 | ) | (17,738 | ) | |||||||||||||
| Balances at September 30, 2020 | 21,304 | $ | 21 | $ | 295,344 | $ | (64,682 | ) | $ | 230,683 | ||||||||||
| Balances at December 31, 2020 | 21,304 | $ | 21 | $ | 294,897 | $ | (60,484 | ) | $ | 234,434 | ||||||||||
| Net investment income | — | — | — | 16,795 | 16,795 | |||||||||||||||
| Net realized gain (loss) | — | — | — | (12,777 | ) | (12,777 | ) | |||||||||||||
| Net change in unrealized gain (loss) | — | — | — | 21,606 | 21,606 | |||||||||||||||
| Issuance of common stock, net of offering and underwriting costs | 240 | 1 | 2,689 | — | 2,690 | |||||||||||||||
| Distributions to stockholders | — | — | — | (16,098 | ) | (16,098 | ) | |||||||||||||
| Balances at September 30, 2021 | 21,544 | $ | 22 | $ | 297,586 | $ | (50,958 | ) | $ | 246,650 | ||||||||||
(unaudited)
(in thousands)
| | | | | | | | | | | | | | |
| | | | | | | | | | Accumulated | | | | |
| | Common Stock | | | | | undistributed | | | | ||||
| | | | Par | | Capital in excess of | | (overdistributed) | | Total | ||||
| | Number of shares | | value | | par value | | earnings | | net assets | ||||
Balances at March 31, 2021 |
| 21,304 |
| $ | 21 |
| $ | 294,897 |
| $ | (58,755) |
| $ | 236,163 |
Net investment income |
| — |
| | — |
| | — |
| | 5,157 |
| | 5,157 |
Net realized gain (loss) |
| — |
| | — |
| | — |
| | 872 |
| | 872 |
Net change in unrealized gain (loss) |
| — |
| | — |
| | — |
| | 5,301 |
| | 5,301 |
Issuance of common stock, net of offering and underwriting costs |
| 240 |
| | 1 |
| | 2,689 |
| | — |
| | 2,690 |
Distributions to stockholders |
| — |
| | — |
| | — |
| | (5,386) |
| | (5,386) |
Balances at June 30, 2021 |
| 21,544 |
| $ | 22 |
| $ | 297,586 |
| $ | (52,811) |
| $ | 244,797 |
| | | | | | | | | | | | | | |
Balances at March 31, 2022 |
| 21,666 | | $ | 22 | | $ | 298,687 | | $ | (53,808) | | $ | 244,901 |
Net investment income |
| — | |
| — | |
| — | |
| 5,014 | |
| 5,014 |
Net realized gain (loss) |
| — | |
| — | |
| — | |
| 11 | |
| 11 |
Net change in unrealized gain (loss) |
| — | |
| — | |
| — | |
| (12,389) | |
| (12,389) |
Issuance of common stock, net of offering and underwriting costs |
| — | |
| — | |
| — | |
| — | |
| — |
Distributions to stockholders |
| — | |
| — | |
| — | |
| (5,416) | |
| (5,416) |
Balances at June 30, 2022 |
| 21,666 | | $ | 22 | | $ | 298,687 | | $ | (66,588) | | $ | 232,121 |
| | | | | | | | | | | | | | |
| | | | | | | | | | Accumulated | | | | |
| | Common Stock | | | | | undistributed | | | | ||||
| | | | Par | | Capital in excess of | | (overdistributed) | | Total | ||||
| | Number of shares | | value | | par value | | earnings | | net assets | ||||
Balances at December 31, 2020 |
| 21,304 |
| $ | 21 |
| $ | 294,897 |
| $ | (60,484) |
| $ | 234,434 |
Net investment income |
| — |
| | — |
| | — |
| | 10,483 |
| | 10,483 |
Net realized gain (loss) |
| — |
| | — |
| | — |
| | (2,146) |
| | (2,146) |
Net change in unrealized gain (loss) |
| — |
| | — |
| | — |
| | 10,048 |
| | 10,048 |
Issuance of common stock, net of offering and underwriting costs |
| 240 |
| | 1 |
| | 2,689 |
| | — |
| | 2,690 |
Distributions to stockholders |
| — |
| | — |
| | — |
| | (10,712) |
| | (10,712) |
Balances at June 30, 2021 |
| 21,544 |
| $ | 22 |
| $ | 297,586 |
| $ | (52,811) |
| $ | 244,797 |
| | | | | | | | | | | | | | |
Balances at December 31, 2021 |
| 21,666 | | $ | 22 | | $ | 298,687 | | $ | (49,238) | | $ | 249,471 |
Net investment income |
| — | |
| — | |
| — | |
| 10,412 | |
| 10,412 |
Net realized gain (loss) |
| — | |
| — | |
| — | |
| (1,128) | |
| (1,128) |
Net change in unrealized gain (loss) |
| — | |
| — | |
| — | |
| (15,801) | |
| (15,801) |
Issuance of common stock, net of offering and underwriting costs |
| — | |
| — | |
| — | |
| — | |
| — |
Distributions to stockholders |
| — | |
| — | |
| — | |
| (10,833) | |
| (10,833) |
Balances at June 30, 2022 |
| 21,666 | | $ | 22 | | $ | 298,687 | | $ | (66,588) | | $ | 232,121 |
See Notes to Consolidated Financial Statements.
5
| Nine months ended September 30, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 25,624 | $ | (7,431 | ) | |||
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||||||
| Net realized (gain) loss on investments | 8,718 | (2,545 | ) | |||||
| Net realized (gain) loss on extinguishment of debt | 3,110 | — | ||||||
| Net realized (gain) loss on foreign currency forward contracts | 55 | (3 | ) | |||||
| Net realized (gain) loss on foreign currency and other transactions | 894 | 13 | ||||||
| Net change in unrealized (gain) loss on investments | (19,980 | ) | 35,568 | |||||
| Net change in unrealized (gain) loss on foreign currency forward contracts | (976 | ) | (19 | ) | ||||
| Net change in unrealized (gain) loss on foreign currency and other transactions | (650 | ) | (521 | ) | ||||
| Payment-in-kind interest income | (6,326 | ) | (5,103 | ) | ||||
| Net accretion of discounts and amortization of premiums | (857 | ) | (960 | ) | ||||
| Purchases of investments | (181,821 | ) | (96,451 | ) | ||||
| Proceeds from principal payments, sales of investments and settlement of forward contracts | 193,506 | 163,458 | ||||||
| Amortization of deferred financing costs | 1,677 | 1,586 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Interest receivable | (4,783 | ) | 2,867 | |||||
| Other assets | 673 | (664 | ) | |||||
| Interest payable | (1,430 | ) | (1,072 | ) | ||||
| Management fees payable | 421 | (337 | ) | |||||
| Incentive fees payable | 1,578 | (1,374 | ) | |||||
| Accounts payable and accrued expenses | 121 | (438 | ) | |||||
| Directors' fees payable | 35 | 38 | ||||||
| Net cash provided by (used in) operating activities | 19,589 | 86,612 | ||||||
| Cash flows from financing activities: | �� | |||||||
| Borrowings on revolving credit facility | 272,400 | 56,700 | ||||||
| Repayments of revolving credit facility | (253,854 | ) | (137,100 | ) | ||||
| Repayment of 2023 Notes | (109,000 | ) | — | |||||
| Proceeds from 2026 Notes | 130,000 | — | ||||||
| Repayment of SBA debentures | (58,100 | ) | — | |||||
| Payments of deferred financing costs | (4,053 | ) | (1,099 | ) | ||||
| Proceeds from shares sold, net of offering and underwriting costs | 2,690 | 6,495 | ||||||
| Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively | (16,098 | ) | (17,738 | ) | ||||
| Net cash provided by (used in) financing activities | (36,015 | ) | (92,742 | ) | ||||
| Net increase (decrease) in Cash and Restricted cash | (16,426 | ) | (6,130 | ) | ||||
| Effect of foreign currency exchange rates | (924 | ) | (35 | ) | ||||
| Cash and Restricted cash, beginning of period | 32,426 | 29,643 | ||||||
| Cash and Restricted cash, end of period | $ | 15,076 | $ | 23,478 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash interest paid during the period | $ | 11,889 | $ | 13,171 | ||||
| Cash paid (refund received) for income taxes, including excise taxes during the period | $ | 400 | $ | 85 | ||||
(unaudited)
(in thousands)
| | | | | | |
| | Six months ended June 30, | ||||
|
| 2022 |
| 2021 | ||
Cash flows from operating activities: |
| |
|
| |
|
Net increase (decrease) in net assets resulting from operations | | $ | (6,517) | | $ | 18,385 |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by | |
|
| |
|
|
(used in) operating activities: | |
|
| |
|
|
Net realized (gain) loss on investments | |
| 83 | |
| (717) |
Net realized (gain) loss on extinguishment of debt | |
| 1,039 | |
| 2,774 |
Net realized (gain) loss on foreign currency forward contracts | |
| (31) | |
| 75 |
Net realized (gain) loss on foreign currency and other transactions | |
| 37 | |
| 14 |
Net change in unrealized (gain) loss on investments | |
| 16,605 | |
| (9,888) |
Net change in unrealized (gain) loss on foreign currency forward contracts | |
| (640) | |
| (446) |
Net change in unrealized (gain) loss on foreign currency and other transactions | |
| (164) | |
| 286 |
Payment-in-kind interest income | |
| (3,218) | |
| (3,413) |
Net accretion of discounts and amortization of premiums | |
| (645) | |
| (617) |
Purchases of investments | |
| (42,827) | |
| (99,567) |
Proceeds from principal payments, sales of investments and settlement of forward contracts | |
| 55,687 | |
| 131,177 |
Amortization of deferred financing costs | |
| 1,091 | |
| 1,138 |
Changes in operating assets and liabilities: | |
|
| |
|
|
Interest receivable | |
| (2,826) | |
| (2,294) |
Other assets | |
| (173) | |
| (603) |
Interest payable | |
| (545) | |
| 1,225 |
Management fees payable | |
| (185) | |
| 349 |
Incentive fees payable | |
| 222 | |
| — |
Accounts payable and accrued expenses | |
| (375) | |
| (279) |
Net cash provided by (used in) operating activities | |
| 16,618 | |
| 37,599 |
| | | | | | |
Cash flows from financing activities: | |
|
| |
|
|
Borrowings on revolving credit facility | |
| 97,100 | |
| 175,500 |
Repayments of revolving credit facility | |
| (57,999) | |
| (175,650) |
Repayment of 2023 Notes | |
| — | |
| (109,000) |
Proceeds from 2026 Notes | |
| — | |
| 130,000 |
Repayment of SBA debentures | |
| (56,900) | |
| (28,100) |
Payments of deferred financing costs | |
| (79) | |
| (4,038) |
Proceeds from shares sold, net of offering and underwriting costs | |
| — | |
| 2,690 |
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0, and $0, respectively | |
| (10,833) | |
| (10,712) |
Net cash provided by (used in) financing activities | |
| (28,711) | |
| (19,310) |
| | | | | | |
Net increase (decrease) in Cash and Restricted cash | |
| (12,093) | |
| 18,289 |
Effect of foreign currency exchange rates | |
| (19) | |
| (41) |
Cash and Restricted cash, beginning of period | |
| 18,081 | |
| 32,426 |
Cash and Restricted cash, end of period | | $ | 5,969 | | $ | 50,674 |
| | | | | | |
Supplemental disclosure of cash flow information: | |
|
| |
|
|
Cash interest paid during the period | | $ | 7,080 | | $ | 5,874 |
Cash paid for income taxes, including excise taxes during the period | | $ | 578 | | $ | 400 |
6
MONROE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS - (continued)
(unaudited)
(in thousands)
The following tables provide a reconciliation of cash and restricted cash reported on the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:
| September 30, 2021 | December 31, 2020 | |||||||||||||
| | | | | | | ||||||||
|
| June 30, 2022 | | December 31, 2021 | ||||||||||
| Cash | $ | 7,031 | $ | 6,769 | | $ | 5,969 | | $ | 2,622 | ||||
| Restricted cash | 8,045 | 25,657 | |
| — | |
| 15,459 | ||||||
| Total cash and restricted cash shown on the Consolidated Statements of Cash Flows | $ | 15,076 | $ | 32,426 | | $ | 5,969 | | $ | 18,081 | ||||
| | | | | | | ||||||||
| | June 30, 2021 | | December 31, 2020 | ||||||||||
Cash | | $ | 21,129 | | $ | 6,769 | ||||||||
Restricted cash | |
| 29,545 | |
| 25,657 | ||||||||
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows | | $ | 50,674 | | $ | 32,426 | ||||||||
| September 30, 2020 | December 31, 2019 | |||||||
| Cash | $ | 4,405 | $ | 2,234 | ||||
| Restricted cash | 19,073 | 27,409 | ||||||
| Total cash and restricted cash shown on the Consolidated Statements of Cash Flows | $ | 23,478 | $ | 29,643 | ||||
See Notes to Consolidated Financial Statements.
6
7
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
(unaudited)
SeptemberJune 30, 20212022
(in thousands, except for shares and units)
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Non-Controlled/Non-Affiliate Company Investments | ||||||||||||||||||||||||
| Senior Secured Loans | ||||||||||||||||||||||||
| Aerospace & Defense | ||||||||||||||||||||||||
| Cassavant Holdings, LLC | L+6.50% | 7.50 | % | 9/8/2021 | 9/8/2026 | 8,000 | $ | 7,842 | $ | 7,840 | 3.2 | % | ||||||||||||
| 8,000 | 7,842 | 7,840 | 3.2 | % | ||||||||||||||||||||
| Automotive | ||||||||||||||||||||||||
| Born To Run, LLC | L+6.00% | 7.00 | % | 4/1/2021 | 4/1/2027 | 3,492 | 3,426 | 3,553 | 1.4 | % | ||||||||||||||
| Born To Run, LLC (Delayed Draw) (f) (g) | L+6.00% | 7.00 | % | 4/1/2021 | 4/1/2027 | 569 | — | — | 0.0 | % | ||||||||||||||
| Hastings Manufacturing Company | L+7.25% | 8.25 | % | 4/24/2018 | 4/24/2023 | 2,581 | 2,561 | 2,581 | 1.1 | % | ||||||||||||||
| Lifted Trucks Holdings, LLC | L+5.75% | 6.75 | % | 8/2/2021 | 8/2/2027 | 7,000 | 6,862 | 6,979 | �� | 2.8 | % | |||||||||||||
| Lifted Trucks Holdings, LLC (Delayed Draw) (f) (g) | L+5.75% | 6.75 | % | 8/2/2021 | 8/2/2027 | 1,400 | — | — | 0.0 | % | ||||||||||||||
| Lifted Trucks Holdings, LLC (Revolver) (f) | L+5.75% | 6.75 | % | 8/2/2021 | 8/2/2027 | 1,667 | 444 | 443 | 0.2 | % | ||||||||||||||
| Magneto & Diesel Acquisition, Inc. | L+6.05% | 7.10 | % | 12/18/2018 | 12/18/2023 | 4,863 | 4,820 | 4,863 | 2.0 | % | ||||||||||||||
| Magneto & Diesel Acquisition, Inc. | L+6.05% | 7.10 | % | 7/6/2020 | 12/18/2023 | 1,913 | 1,887 | 1,952 | 0.8 | % | ||||||||||||||
| Magneto & Diesel Acquisition, Inc. | L+6.05% | 7.10 | % | 8/4/2021 | 12/18/2023 | 831 | 816 | 848 | 0.3 | % | ||||||||||||||
| Magneto & Diesel Acquisition, Inc. (Revolver) (f) | L+5.50% | 6.55 | % | 12/18/2018 | 12/18/2023 | 500 | — | — | 0.0 | % | ||||||||||||||
| 24,816 | 20,816 | 21,219 | 8.6 | % | ||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| Florida East Coast Industries, LLC (h) | n/a | 10.50 | % | 8/9/2021 | 6/28/2024 | 3,572 | 3,469 | 3,576 | 1.5 | % | ||||||||||||||
| J2 BWA Funding LLC (Delayed Draw) (f) (g) (h) | n/a | 9.00 | % | 12/24/2020 | 12/24/2026 | 2,722 | 482 | 481 | 0.2 | % | ||||||||||||||
| Liftforward SPV II, LLC (h) | L+10.75% | 11.25 | % | 11/10/2016 | 12/31/2021 | 1,006 | 1,006 | 957 | 0.4 | % | ||||||||||||||
| MV Realty Holdings, LLC (Delayed Draw) (f) (g) (h) | L+9.75% | 11.25 | % | 7/29/2021 | 7/29/2026 | 8,000 | 441 | 745 | 0.3 | % | ||||||||||||||
| NCBP Property, LLC (h) | L+9.50% | 10.50 | % | 12/18/2020 | 12/16/2022 | 1,950 | 1,938 | 1,955 | 0.8 | % | ||||||||||||||
| Oceana Australian Fixed Income Trust (h) (i) (j) | n/a | 10.75 | % | 6/29/2021 | 6/29/2026 | 3,271 | 3,400 | 3,268 | 1.3 | % | ||||||||||||||
| Oceana Australian Fixed Income Trust (h) (i) (j) | n/a | 11.50 | % | 2/25/2021 | 2/25/2026 | 7,766 | 8,460 | 7,766 | 3.2 | % | ||||||||||||||
| StarCompliance MidCo, LLC | L+6.75% | 7.75 | % | 1/12/2021 | 1/11/2027 | 2,000 | 1,964 | 2,000 | 0.8 | % | ||||||||||||||
| StarCompliance MidCo, LLC (Revolver) (f) | L+6.75% | 7.75 | % | 1/12/2021 | 1/11/2027 | 322 | — | — | 0.0 | % | ||||||||||||||
| US Claims Litigation Funding, LLC (Revolver) (f) (h) | L+8.75% | 9.75 | % | 11/30/2020 | 11/29/2024 | 1,500 | 1,495 | 1,520 | 0.6 | % | ||||||||||||||
| W3 Monroe RE Debt LLC (h) | n/a | 10.00% PIK | 2/5/2021 | 2/4/2028 | 2,835 | 2,835 | 2,835 | 1.1 | % | |||||||||||||||
| 34,944 | 25,490 | 25,103 | 10.2 | % | ||||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||||||
| LVF Holdings, Inc. | L+6.25% | 7.25 | % | 6/10/2021 | 6/10/2027 | 1,500 | 1,471 | 1,500 | 0.6 | % | ||||||||||||||
| LVF Holdings, Inc. | L+6.25% | 7.25 | % | 6/10/2021 | 6/10/2027 | 1,436 | 1,436 | 1,436 | 0.6 | % | ||||||||||||||
| LVF Holdings, Inc. (Delayed Draw) (f) (g) | L+6.25% | 7.25 | % | 6/10/2021 | 6/10/2027 | 344 | — | — | 0.0 | % | ||||||||||||||
| LVF Holdings, Inc. (Revolver) (f) | L+6.25% | 7.25 | % | 6/10/2021 | 6/10/2027 | 238 | 28 | 28 | 0.0 | % | ||||||||||||||
| LX/JT Intermediate Holdings, Inc. (k) | L+6.00% | 7.50 | % | 3/11/2020 | 3/11/2025 | 9,464 | 9,326 | 9,431 | 3.8 | % | ||||||||||||||
| LX/JT Intermediate Holdings, Inc. (Revolver) (f) | L+6.00% | 7.50 | % | 3/11/2020 | 3/11/2025 | 833 | — | — | 0.0 | % | ||||||||||||||
| Toojay's Management LLC (l) | n/a | n/a | (m) | 10/26/2018 | 10/26/2022 | 1,448 | 1,407 | — | 0.0 | % | ||||||||||||||
| Toojay's Management LLC (l) | n/a | n/a | (m) | 10/26/2018 | 10/26/2022 | 199 | 199 | — | 0.0 | % | ||||||||||||||
| Toojay's Management LLC (Revolver) (l) | n/a | n/a | (m) | 10/26/2018 | 10/26/2022 | 66 | 66 | — | 0.0 | % | ||||||||||||||
| 15,528 | 13,933 | 12,395 | 5.0 | % | ||||||||||||||||||||
| Capital Equipment | ||||||||||||||||||||||||
| MCP Shaw Acquisitionco, LLC (k) | L+6.50% | 7.50 | % | 2/28/2020 | 11/28/2025 | 9,733 | 9,588 | 9,699 | 3.9 | % | ||||||||||||||
| MCP Shaw Acquisitionco, LLC (Revolver) (f) | L+6.50% | 7.50 | % | 2/28/2020 | 11/28/2025 | 1,784 | — | — | 0.0 | % | ||||||||||||||
| 11,517 | 9,588 | 9,699 | 3.9 | % | ||||||||||||||||||||
| Chemicals, Plastics & Rubber | ||||||||||||||||||||||||
| Valudor Products LLC | L+7.50% | 7.00% Cash/ 1.50% PIK | 6/18/2018 | 6/19/2023 | 1,579 | 1,566 | 1,842 | 0.8 | % | |||||||||||||||
| Valudor Products LLC (n) | L+7.50% | 8.50% PIK | 6/18/2018 | 6/19/2023 | 232 | 229 | 223 | 0.1 | % | |||||||||||||||
| Valudor Products LLC (Revolver) (f) | L+9.50% | 10.50 | % | 6/18/2018 | 6/19/2023 | 1,095 | 1,055 | 1,049 | 0.4 | % | ||||||||||||||
| 2,906 | 2,850 | 3,114 | 1.3 | % | ||||||||||||||||||||
| Construction & Building | ||||||||||||||||||||||||
| Dude Solutions Holdings, Inc. | L+7.25% | 8.25 | % | 6/14/2019 | 6/13/2025 | 9,925 | 9,770 | 9,910 | 4.0 | % | ||||||||||||||
| Dude Solutions Holdings, Inc. (Revolver) (f) | L+7.25% | 8.25 | % | 6/14/2019 | 6/13/2025 | 1,304 | — | — | 0.0 | % | ||||||||||||||
| TCFIII OWL Buyer LLC | L+6.00% | 7.00 | % | 4/19/2021 | 4/17/2026 | 2,045 | 2,012 | 2,045 | 0.8 | % | ||||||||||||||
| TCFIII OWL Buyer LLC (Delayed Draw) (f) (g) | L+6.00% | 7.00 | % | 4/19/2021 | 4/17/2026 | 2,495 | 1,876 | 1,876 | 0.8 | % | ||||||||||||||
| 15,769 | 13,658 | 13,831 | 5.6 | % | ||||||||||||||||||||
| Consumer Goods: Durable | ||||||||||||||||||||||||
| Independence Buyer, Inc. | L+5.75% | 6.75 | % | 8/3/2021 | 8/3/2026 | 6,000 | 5,883 | 6,000 | 2.4 | % | ||||||||||||||
| Independence Buyer, Inc. (Revolver) (f) | L+5.75% | 6.75 | % | 8/3/2021 | 8/3/2026 | 1,423 | — | — | 0.0 | % | ||||||||||||||
| Parterre Flooring & Surface Systems LLC (k) | L+9.00% | 10.00 | %(m) | 8/22/2017 | 8/22/2022 | 6,936 | 5,881 | 151 | 0.1 | % | ||||||||||||||
| Recycled Plastics Industries, LLC | L+6.75% | 7.75 | % | 8/4/2021 | 8/4/2026 | 3,500 | 3,431 | 3,500 | 1.4 | % | ||||||||||||||
| Recycled Plastics Industries, LLC (Revolver) (f) | L+6.75% | 7.75 | % | 8/4/2021 | 8/4/2026 | 473 | — | — | 0.0 | % | ||||||||||||||
| 18,332 | 15,195 | 9,651 | 3.9 | % | ||||||||||||||||||||
| Consumer Goods: Non-Durable | ||||||||||||||||||||||||
| The Kyjen Company, LLC | L+6.50% | 7.50 | % | 5/14/2021 | 4/3/2026 | 995 | 986 | 1,000 | 0.4 | % | ||||||||||||||
| The Kyjen Company, LLC (Revolver) (f) | L+6.50% | 7.50 | % | 5/14/2021 | 4/3/2026 | 105 | 43 | 43 | 0.0 | % | ||||||||||||||
| Thrasio, LLC | L+7.00% | 8.00 | % | 12/18/2020 | 12/18/2026 | 1,489 | 1,456 | 1,489 | 0.6 | % | ||||||||||||||
| Thrasio, LLC | L+7.00% | 8.00 | % | 12/18/2020 | 12/18/2026 | 988 | 988 | 988 | 0.4 | % | ||||||||||||||
| 3,577 | 3,473 | 3,520 | 1.4 | % | ||||||||||||||||||||
| Environmental Industries | ||||||||||||||||||||||||
| Quest Resource Management Group, LLC | L+7.50% | 8.75 | % | 10/19/2020 | 10/20/2025 | 993 | 926 | 1,017 | 0.4 | % | ||||||||||||||
| Quest Resource Management Group, LLC (Delayed Draw) (f) (g) | L+7.50% | 8.75 | % | 10/19/2020 | 10/20/2025 | 1,087 | — | — | 0.0 | % | ||||||||||||||
| StormTrap, LLC | L+5.50% | 6.50 | % | 12/10/2018 | 12/8/2023 | 7,170 | 7,108 | 7,170 | 2.9 | % | ||||||||||||||
| StormTrap, LLC (Revolver) (f) | L+5.50% | 6.50 | % | 12/10/2018 | 12/8/2023 | 432 | — | — | 0.0 | % | ||||||||||||||
| Synergy Environmental Corporation (k) | L+6.00% | 7.00 | % | 4/29/2016 | 9/29/2023 | 2,861 | 2,853 | 2,861 | 1.2 | % | ||||||||||||||
| Synergy Environmental Corporation (k) | L+6.00% | 7.00 | % | 4/29/2016 | 9/29/2023 | 478 | 477 | 478 | 0.2 | % | ||||||||||||||
| Synergy Environmental Corporation | L+6.00% | 7.00 | % | 4/29/2016 | 9/29/2023 | 813 | 813 | 813 | 0.3 | % | ||||||||||||||
| Synergy Environmental Corporation (Revolver) (f) | L+6.00% | 7.00 | % | 4/29/2016 | 9/29/2023 | 671 | — | — | 0.0 | % | ||||||||||||||
| 14,505 | 12,177 | 12,339 | 5.0 | % | ||||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| Apotheco, LLC | L+8.50% | 6.50% Cash/ 3.00% PIK | 4/8/2019 | 4/8/2024 | 3,614 | 3,575 | 3,432 | 1.4 | % | |||||||||||||||
| Apotheco, LLC (Revolver) | L+8.50% | 6.50% Cash/ 3.00% PIK | 4/8/2019 | 4/8/2024 | 948 | 948 | 900 | 0.4 | % | |||||||||||||||
| Brickell Bay Acquisition Corp. | L+6.50% | 7.50 | % | 2/12/2021 | 2/12/2026 | 1,904 | 1,869 | 1,904 | 0.8 | % | ||||||||||||||
| Brickell Bay Acquisition Corp. (Delayed Draw) (f) (g) | L+6.50% | 7.50 | % | 2/12/2021 | 2/12/2026 | 382 | — | — | 0.0 | % | ||||||||||||||
| Caravel Autism Health, LLC | L+5.75% | 6.75 | % | 6/30/2021 | 6/30/2027 | 5,000 | 4,903 | 5,000 | 2.0 | % | ||||||||||||||
| Caravel Autism Health, LLC (Delayed Draw) (f) (g) | L+5.75% | 6.75 | % | 6/30/2021 | 6/30/2027 | 3,750 | 188 | 188 | 0.1 | % | ||||||||||||||
| Caravel Autism Health, LLC (Revolver) (f) | L+5.75% | 6.75 | % | 6/30/2021 | 6/30/2027 | 1,250 | 125 | 125 | 0.1 | % | ||||||||||||||
| Dorado Acquisition, Inc. | L+6.75% | 7.75 | % | 6/30/2021 | 6/30/2026 | 5,000 | 4,903 | 4,992 | 2.0 | % | ||||||||||||||
| Dorado Acquisition, Inc. (Delayed Draw) (f) (g) | L+6.75% | 7.75 | % | 6/30/2021 | 6/30/2026 | 216 | — | — | 0.0 | % | ||||||||||||||
| Dorado Acquisition, Inc. (Revolver) (f) | L+6.75% | 7.75 | % | 6/30/2021 | 6/30/2026 | 596 | — | — | 0.0 | % | ||||||||||||||
| INH Buyer, Inc. | L+6.00% | 7.00 | % | 6/30/2021 | 6/28/2028 | 2,946 | 2,918 | 2,945 | 1.2 | % | ||||||||||||||
| NationsBenefits, LLC | L+7.00% | 8.00 | % | 8/20/2021 | 8/20/2026 | 4,000 | 3,921 | 4,002 | 1.6 | % | ||||||||||||||
| NationsBenefits, LLC (Revolver) (f) | L+7.00% | 8.00 | % | 8/20/2021 | 8/20/2026 | 445 | — | — | 0.0 | % | ||||||||||||||
| Rockdale Blackhawk, LLC | n/a | n/a | (o) | 3/31/2015 | n/a | (p) | — | — | 1,592 | 0.6 | % | |||||||||||||
| Seran BioScience, LLC | L+6.25% | 7.25 | % | 12/31/2020 | 12/31/2025 | 2,488 | 2,445 | 2,497 | 1.0 | % | ||||||||||||||
| Seran BioScience, LLC (Revolver) (f) | L+6.25% | 7.25 | % | 12/31/2020 | 12/31/2025 | 444 | — | — | 0.0 | % | ||||||||||||||
| 32,983 | 25,795 | 27,577 | 11.2 | % | ||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Arcstor Midco, LLC | L+7.00% | 8.00 | % | 3/16/2021 | 3/16/2027 | 4,478 | 4,393 | 4,469 | 1.8 | % | ||||||||||||||
| MarkLogic Corporation | L+6.00% | 7.00 | % | 10/20/2020 | 10/20/2025 | 3,474 | 3,401 | 3,526 | 1.4 | % | ||||||||||||||
| MarkLogic Corporation (Revolver) (f) | L+6.00% | 7.00 | % | 10/20/2020 | 10/20/2025 | 269 | — | — | 0.0 | % | ||||||||||||||
| Mindbody, Inc. | L+8.50% | 8.00% Cash/ 1.50% PIK | 2/15/2019 | 2/14/2025 | 6,462 | 6,386 | 6,427 | 2.6 | % | |||||||||||||||
| Mindbody, Inc. (Delayed Draw) (f) (g) | L+8.50% | 8.00% Cash/ 1.50% PIK | 9/22/2021 | 2/14/2025 | 667 | — | — | 0.0 | % | |||||||||||||||
| Mindbody, Inc. (Revolver) (f) | L+8.00% | 9.00 | % | 2/15/2019 | 2/14/2025 | 667 | — | — | 0.0 | % | ||||||||||||||
| Newforma, Inc. (k) | L+5.50% | 6.50 | % | 6/30/2017 | 6/30/2022 | 4,077 | 4,067 | 4,077 | 1.7 | % | ||||||||||||||
| Newforma, Inc. (Revolver) (f) | L+5.50% | 6.50 | % | 6/30/2017 | 6/30/2022 | 1,250 | — | — | 0.0 | % | ||||||||||||||
| Planful, Inc. | L+6.50% | 7.50 | % | 12/28/2018 | 12/30/2024 | 9,500 | 9,404 | 9,462 | 3.8 | % | ||||||||||||||
| Planful, Inc. | L+6.50% | 7.50 | % | 1/11/2021 | 12/30/2024 | 1,325 | 1,325 | 1,320 | 0.6 | % | ||||||||||||||
| Planful, Inc. (Revolver) (f) | L+6.50% | 7.50 | % | 12/28/2018 | 12/30/2024 | 442 | 88 | 88 | 0.0 | % | ||||||||||||||
| 32,611 | 29,064 | 29,369 | 11.9 | % | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of |
| |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) |
| ||
Non-Controlled/Non-Affiliate Company Investments |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Senior Secured Loans |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Automotive |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Born To Run, LLC |
| L+6.00 | % | 8.25 | % | 4/1/2021 |
| 4/1/2027 |
| 3,465 |
| $ | 3,408 |
| $ | 3,472 |
| 1.6 | % |
Born To Run, LLC (Delayed Draw) (f) (g) |
| L+6.00 | % | 8.25 | % | 4/1/2021 |
| 4/1/2027 |
| 569 |
| | 33 |
| | 33 |
| 0.0 | % |
Hastings Manufacturing Company |
| L+7.25 | % | 8.92 | % | 4/24/2018 |
| 4/24/2023 |
| 2,412 |
| | 2,402 |
| | 2,412 |
| 1.0 | % |
Lifted Trucks Holdings, LLC |
| L+5.75 | % | 6.75 | % | 8/2/2021 |
| 8/2/2027 |
| 6,965 |
| | 6,843 |
| | 6,906 |
| 3.0 | % |
Lifted Trucks Holdings, LLC (Delayed Draw) (f) (g) |
| L+5.75 | % | 6.75 | % | 8/2/2021 |
| 8/2/2027 |
| 1,400 |
| | — |
| | — |
| 0.0 | % |
Lifted Trucks Holdings, LLC (Revolver) (f) |
| L+5.75 | % | 6.75 | % | 8/2/2021 |
| 8/2/2027 |
| 1,667 |
| | — |
| | — |
| 0.0 | % |
Magneto & Diesel Acquisition, Inc. |
| L+5.50 | % | 7.17 | % | 12/18/2018 |
| 12/18/2023 |
| 4,825 |
| | 4,797 |
| | 4,825 |
| 2.1 | % |
Magneto & Diesel Acquisition, Inc. |
| L+5.50 | % | 7.17 | % | 7/6/2020 |
| 12/18/2023 |
| 1,899 |
| | 1,882 |
| | 1,913 |
| 0.8 | % |
Magneto & Diesel Acquisition, Inc. |
| L+5.50 | % | 7.17 | % | 8/4/2021 |
| 12/18/2023 |
| 79 |
| | 78 |
| | 80 |
| 0.0 | % |
Magneto & Diesel Acquisition, Inc. (Revolver) (f) |
| L+5.50 | % | 7.17 | % | 12/18/2018 |
| 12/18/2023 |
| 500 |
| | — |
| | — |
| 0.0 | % |
|
| | | | | | | | | 23,781 |
| | 19,443 |
| | 19,641 |
| 8.5 | % |
Banking |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
MV Receivables II, LLC (Delayed Draw) (f) (g) (h) |
| L+9.75 | % | 11.25 | % | 7/29/2021 |
| 7/29/2026 |
| 8,000 |
| | 3,768 |
| | 4,026 |
| 1.7 | % |
StarCompliance MidCo, LLC |
| L+6.75 | % | 9.00 | % | 1/12/2021 |
| 1/12/2027 |
| 2,000 |
| | 1,969 |
| | 1,983 |
| 0.9 | % |
StarCompliance MidCo, LLC |
| L+6.75 | % | 9.00 | % | 10/12/2021 |
| 1/12/2027 |
| 336 |
| | 330 |
| | 333 |
| 0.1 | % |
StarCompliance MidCo, LLC (Revolver) (f) |
| L+6.75 | % | 8.42 | % | 1/12/2021 |
| 1/12/2027 |
| 322 |
| | 32 |
| | 32 |
| 0.0 | % |
|
| | | | | | | | | 10,658 |
| | 6,099 |
| | 6,374 |
| 2.7 | % |
Beverage, Food & Tobacco |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
LVF Holdings, Inc. |
| L+6.25 | % | 8.45 | % | 6/10/2021 |
| 6/10/2027 |
| 1,493 |
| | 1,467 |
| | 1,470 |
| 0.6 | % |
LVF Holdings, Inc. |
| L+6.25 | % | 8.45 | % | 6/10/2021 |
| 6/10/2027 |
| 1,428 |
| | 1,428 |
| | 1,407 |
| 0.6 | % |
LVF Holdings, Inc. (Delayed Draw) (f) (g) |
| L+6.25 | % | 8.45 | % | 6/10/2021 |
| 6/10/2027 |
| 344 |
| | — |
| | — |
| 0.0 | % |
LVF Holdings, Inc. (Revolver) (f) |
| L+6.25 | % | 8.50 | % | 6/10/2021 |
| 6/10/2027 |
| 238 |
| | 176 |
| | 173 |
| 0.1 | % |
LX/JT Intermediate Holdings, Inc. |
| SF+6.00 | % | 7.63 | % | 3/11/2020 |
| 3/11/2025 |
| 5,518 |
| | 5,453 |
| | 5,438 |
| 2.4 | % |
LX/JT Intermediate Holdings, Inc. (Revolver) (f) |
| SF+6.00 | % | 7.63 | % | 3/11/2020 |
| 3/11/2025 |
| 833 |
| | — |
| | — |
| 0.0 | % |
Toojay’s Management LLC (i) |
| n/a |
| n/a | (j) | 10/26/2018 |
| 10/26/2022 |
| 1,448 |
| | 1,407 |
| | — |
| 0.0 | % |
Toojay’s Management LLC (i) |
| n/a |
| n/a | (j) | 10/26/2018 |
| 10/26/2022 |
| 199 |
| | 199 |
| | — |
| 0.0 | % |
Toojay’s Management LLC (Revolver) (i) |
| n/a |
| n/a | (j) | 10/26/2018 |
| 10/26/2022 |
| 66 |
| | 66 |
| | — |
| 0.0 | % |
|
| | | | | | | | | 11,567 |
| | 10,196 |
| | 8,488 |
| 3.7 | % |
Capital Equipment |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
MCP Shaw Acquisitionco, LLC |
| SF+6.50 | % | 8.82 | % | 2/28/2020 |
| 11/28/2025 |
| 9,733 |
| | 9,614 |
| | 9,738 |
| 4.2 | % |
MCP Shaw Acquisitionco, LLC |
| SF+6.50 | % | 8.82 | % | 12/29/2021 |
| 11/28/2025 |
| 2,987 |
| | 2,935 |
| | 2,989 |
| 1.3 | % |
MCP Shaw Acquisitionco, LLC (Delayed Draw) (f) (g) |
| SF+6.50 | % | 8.82 | % | 12/29/2021 |
| 11/28/2025 |
| 983 |
| | 437 |
| | 437 |
| 0.2 | % |
MCP Shaw Acquisitionco, LLC (Revolver) (f) |
| SF+6.50 | % | 8.82 | % | 2/28/2020 |
| 11/28/2025 |
| 1,784 |
| | 595 |
| | 595 |
| 0.2 | % |
|
| | | | | | | | | 15,487 |
| | 13,581 |
| | 13,759 |
| 5.9 | % |
8
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
SeptemberJune 30, 20212022
(in thousands, except for shares and units)
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Hotels, Gaming & Leisure | ||||||||||||||||||||||||
| Equine Network, LLC | L+8.00% | 9.00 | % | 12/31/2020 | 12/31/2025 | 1,741 | $ | 1,707 | $ | 1,743 | 0.7 | % | ||||||||||||
| Equine Network, LLC | L+8.00% | 9.00 | % | 1/29/2021 | 12/31/2025 | 790 | 776 | 790 | 0.3 | % | ||||||||||||||
| Equine Network, LLC (Delayed Draw) (f) (g) | L+8.00% | 9.00 | % | 12/31/2020 | 12/31/2025 | 427 | — | — | 0.0 | % | ||||||||||||||
| Equine Network, LLC (Revolver) (f) | L+8.00% | 9.00 | % | 12/31/2020 | 12/31/2025 | 171 | — | — | 0.0 | % | ||||||||||||||
| 3,129 | 2,483 | 2,533 | 1.0 | % | ||||||||||||||||||||
| Media: Advertising, Printing & Publishing | ||||||||||||||||||||||||
| AdTheorent, Inc. | L+8.50% | 9.00 | % | 12/22/2016 | 12/22/2021 | 2,512 | 2,509 | 2,512 | 1.0 | % | ||||||||||||||
| Destination Media, Inc. (k) | L+5.50% | 6.50 | % | 4/7/2017 | 4/7/2022 | 2,593 | 2,587 | 2,593 | 1.1 | % | ||||||||||||||
| Destination Media, Inc. (Revolver) (f) | L+5.50% | 6.50 | % | 4/7/2017 | 4/7/2022 | 542 | — | — | 0.0 | % | ||||||||||||||
| North Haven USHC Acquisition, Inc. | L+6.00% | 7.00 | % | 10/30/2020 | 10/30/2025 | 2,481 | 2,439 | 2,481 | 1.0 | % | ||||||||||||||
| North Haven USHC Acquisition, Inc. | L+6.00% | 7.00 | % | 3/12/2021 | 10/30/2025 | 719 | 719 | 726 | 0.3 | % | ||||||||||||||
| North Haven USHC Acquisition, Inc. (Delayed Draw) (f) (g) | L+6.00% | 7.00 | % | 9/3/2021 | 10/30/2025 | 1,442 | 483 | 488 | 0.2 | % | ||||||||||||||
| North Haven USHC Acquisition, Inc. (Revolver) (f) | L+6.00% | 7.00 | % | 10/30/2020 | 10/30/2025 | 240 | — | — | 0.0 | % | ||||||||||||||
| Relevate Health Group, LLC | L+6.00% | 7.00 | % | 11/20/2020 | 11/20/2025 | 1,493 | 1,467 | 1,507 | 0.6 | % | ||||||||||||||
| Relevate Health Group, LLC (Delayed Draw) (f) (g) | L+6.00% | 7.00 | % | 11/20/2020 | 11/20/2025 | 786 | 668 | 674 | 0.3 | % | ||||||||||||||
| Relevate Health Group, LLC (Revolver) (f) | L+6.00% | 7.00 | % | 11/20/2020 | 11/20/2025 | 316 | — | — | 0.0 | % | ||||||||||||||
| XanEdu Publishing, Inc. | L+6.00% | 7.00 | % | 1/28/2020 | 1/28/2025 | 4,642 | 4,561 | 4,654 | 1.9 | % | ||||||||||||||
| XanEdu Publishing, Inc. (Revolver) (f) | L+6.00% | 7.00 | % | 1/28/2020 | 1/28/2025 | 742 | 99 | 99 | 0.0 | % | ||||||||||||||
| 18,508 | 15,532 | 15,734 | 6.4 | % | ||||||||||||||||||||
| Media: Broadcasting & Subscription | ||||||||||||||||||||||||
| Vice Group Holding Inc. | L+12.00% | 5.50% Cash/ 8.00% PIK | 5/2/2019 | 11/2/2022 | 1,496 | 1,491 | 1,496 | 0.6 | % | |||||||||||||||
| Vice Group Holding Inc. | L+12.00% | 5.50% Cash/ 8.00% PIK | 11/4/2019 | 11/2/2022 | 287 | 285 | 287 | 0.1 | % | |||||||||||||||
| Vice Group Holding Inc. | L+12.00% | 5.50% Cash/ 8.00% PIK | 5/2/2019 | 11/2/2022 | 469 | 469 | 469 | 0.2 | % | |||||||||||||||
| Vice Group Holding Inc. | L+12.00% | 5.50% Cash/ 8.00% PIK | 5/2/2019 | 11/2/2022 | 177 | 177 | 177 | 0.1 | % | |||||||||||||||
| 2,429 | 2,422 | 2,429 | 1.0 | % | ||||||||||||||||||||
| Media: Diversified & Production | ||||||||||||||||||||||||
| Attom Intermediate Holdco, LLC | L+6.15% | 7.15 | % | 1/4/2019 | 1/4/2024 | 1,945 | 1,926 | 1,945 | 0.8 | % | ||||||||||||||
| Attom Intermediate Holdco, LLC | L+6.15% | 7.15 | % | 6/25/2020 | 1/4/2024 | 474 | 468 | 474 | 0.2 | % | ||||||||||||||
| Attom Intermediate Holdco, LLC | L+6.15% | 7.15 | % | 7/1/2021 | 1/4/2024 | 279 | 274 | 279 | 0.1 | % | ||||||||||||||
| Attom Intermediate Holdco, LLC (Revolver) (f) | L+5.75% | 6.75 | % | 1/4/2019 | 1/4/2024 | 320 | — | — | 0.0 | % | ||||||||||||||
| Crownpeak Technology, Inc. | L+5.75% | 6.75 | % | 2/28/2019 | 2/28/2024 | 4,000 | 3,958 | 4,000 | 1.6 | % | ||||||||||||||
| Crownpeak Technology, Inc. | L+5.75% | 6.75 | % | 2/28/2019 | 2/28/2024 | 60 | 60 | 60 | 0.0 | % | ||||||||||||||
| Crownpeak Technology, Inc. (Revolver) (f) | L+5.75% | 6.75 | % | 2/28/2019 | 2/28/2024 | 167 | — | — | 0.0 | % | ||||||||||||||
| CyberGrants Holdings, LLC | L+6.50% | 7.25 | % | 9/8/2021 | 9/8/2027 | 10,900 | 10,738 | 10,737 | 4.4 | % | ||||||||||||||
| CyberGrants Holdings, LLC (Delayed Draw) (f) (g) | L+6.50% | 7.25 | % | 9/8/2021 | 9/8/2027 | 1,069 | — | — | 0.0 | % | ||||||||||||||
| CyberGrants Holdings, LLC (Revolver) (f) | L+6.50% | 7.25 | % | 9/8/2021 | 9/8/2027 | 1,069 | — | — | 0.0 | % | ||||||||||||||
| 20,283 | 17,424 | 17,495 | 7.1 | % | ||||||||||||||||||||
| Retail | ||||||||||||||||||||||||
| BLST Operating Company, LLC | L+8.50% | 1.00% Cash/ 9.00% PIK | (m) | 8/28/2020 | 8/28/2025 | 1,147 | 1,054 | 1,142 | 0.5 | % | ||||||||||||||
| Forman Mills, Inc. (k) | L+9.50% | 8.50% Cash/ 2.00% PIK | 1/14/2020 | 12/30/2022 | 1,336 | 1,336 | 1,329 | 0.5 | % | |||||||||||||||
| Forman Mills, Inc. (k) | L+9.50% | 8.50% Cash/ 2.00% PIK | 10/4/2016 | 12/30/2022 | 441 | 441 | 439 | 0.2 | % | |||||||||||||||
| Forman Mills, Inc. (k) | L+9.50% | 8.50% Cash/ 2.00% PIK | 10/4/2016 | 12/30/2022 | 7,623 | 7,623 | 7,497 | 3.0 | % | |||||||||||||||
| LuLu's Fashion Lounge, LLC | L+9.50% | 8.00% Cash/ 2.50% PIK | 8/21/2017 | 8/29/2022 | 3,919 | 3,893 | 3,351 | 1.4 | % | |||||||||||||||
| 14,466 | 14,347 | 13,758 | 5.6 | % | ||||||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| Aras Corporation | L+7.00% | 4.25% Cash/ 3.75% PIK | 4/13/2021 | 4/13/2027 | 1,514 | 1,486 | 1,544 | 0.6 | % | |||||||||||||||
| Aras Corporation (Delayed Draw) (f) (g) | L+7.00% | 4.25% Cash/ 3.75% PIK | 4/13/2021 | 4/13/2027 | 200 | — | — | 0.0 | % | |||||||||||||||
| Aras Corporation (Revolver) (f) | L+7.00% | 4.25% Cash/ 3.75% PIK | 4/13/2021 | 4/13/2027 | 150 | — | — | 0.0 | % | |||||||||||||||
| Atlas Sign Industries of FLA, LLC (k) | L+11.50% | 11.50% Cash/ 1.00% PIK | 5/14/2018 | 5/15/2023 | 3,590 | 3,395 | 3,590 | 1.5 | % | |||||||||||||||
| Burroughs, Inc. (k) | L+6.50% | 7.50 | % | 12/22/2017 | 12/22/2022 | 5,576 | 5,550 | 5,576 | 2.3 | % | ||||||||||||||
| Burroughs, Inc. (Revolver) (f) | L+6.50% | 7.50 | % | 12/22/2017 | 12/22/2022 | 1,220 | — | — | 0.0 | % | ||||||||||||||
| Certify, Inc. | L+5.50% | 6.50 | % | 2/28/2019 | 2/28/2024 | 9,000 | 8,928 | 9,000 | 3.6 | % | ||||||||||||||
| Certify, Inc. | L+5.50% | 6.50 | % | 2/28/2019 | 2/28/2024 | 1,227 | 1,227 | 1,227 | 0.5 | % | ||||||||||||||
| Certify, Inc. (Revolver) (f) | L+5.50% | 6.50 | % | 2/28/2019 | 2/28/2024 | 409 | 102 | 102 | 0.0 | % | ||||||||||||||
| HS4 Acquisitionco, Inc. | L+6.75% | 7.75 | % | 7/9/2019 | 7/9/2025 | 10,025 | 9,887 | 9,919 | 4.0 | % | ||||||||||||||
| HS4 Acquisitionco, Inc. (Revolver) (f) | L+6.75% | 7.75 | % | 7/9/2019 | 7/9/2025 | 817 | — | — | 0.0 | % | ||||||||||||||
| IT Global Holding LLC (h) | L+9.00% | 10.00 | % | 11/15/2018 | 11/10/2023 | 7,101 | 7,030 | 7,677 | 3.1 | % | ||||||||||||||
| IT Global Holding LLC (h) | L+9.00% | 10.00 | % | 7/19/2019 | 11/10/2023 | 2,648 | 2,614 | 2,863 | 1.2 | % | ||||||||||||||
| IT Global Holding LLC (Revolver) (h) | L+9.00% | 10.00 | % | 11/15/2018 | 11/10/2023 | 875 | 875 | 946 | 0.4 | % | ||||||||||||||
| RedZone Robotics, Inc. | L+6.75% | 7.75 | % | 6/1/2018 | 6/5/2023 | 215 | 213 | 215 | 0.1 | % | ||||||||||||||
| RedZone Robotics, Inc. (Revolver) (f) | L+6.75% | 7.75 | % | 6/1/2018 | 6/5/2023 | 158 | — | — | 0.0 | % | ||||||||||||||
| Relativity ODA LLC | L+7.50% | 8.50% PIK | 5/12/2021 | 5/12/2027 | 1,855 | 1,811 | 1,854 | 0.8 | % | |||||||||||||||
| Relativity ODA LLC (Revolver) (f) | L+7.50% | 8.50% PIK | 5/12/2021 | 5/12/2027 | 180 | — | — | 0.0 | % | |||||||||||||||
| Security Services Acquisition Sub Corp. | L+6.00% | 7.00 | % | 9/30/2021 | 2/15/2024 | 8,000 | 7,880 | 8,000 | 3.2 | % | ||||||||||||||
| Security Services Acquisition Sub Corp. (k) | L+6.00% | 7.00 | % | 2/15/2019 | 2/15/2024 | 3,421 | 3,387 | 3,421 | 1.4 | % | ||||||||||||||
| Security Services Acquisition Sub Corp. (k) | L+6.00% | 7.00 | % | 2/15/2019 | 2/15/2024 | 2,461 | 2,461 | 2,461 | 1.0 | % | ||||||||||||||
| Security Services Acquisition Sub Corp. (k) | L+6.00% | 7.00 | % | 2/15/2019 | 2/15/2024 | 2,162 | 2,162 | 2,162 | 0.9 | % | ||||||||||||||
| Security Services Acquisition Sub Corp. | L+6.00% | 7.00 | % | 2/15/2019 | 2/15/2024 | 1,555 | 1,555 | 1,555 | 0.6 | % | ||||||||||||||
| VPS Holdings, LLC | L+9.00% | 8.00% Cash/ 2.00% PIK | 10/5/2018 | 10/4/2024 | 3,492 | 3,452 | 3,201 | 1.3 | % | |||||||||||||||
| VPS Holdings, LLC | L+9.00% | 8.00% Cash/ 2.00% PIK | 10/5/2018 | 10/4/2024 | 2,852 | 2,852 | 2,614 | 1.1 | % | |||||||||||||||
| VPS Holdings, LLC (Revolver) (f) | L+9.00% | 8.00% Cash/ 2.00% PIK | 10/5/2018 | 10/4/2024 | 1,000 | 100 | 92 | 0.0 | % | |||||||||||||||
| 71,703 | 66,967 | 68,019 | 27.6 | % | ||||||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| Express Wash Acquisition Company, LLC | L+6.50% | 7.50 | % | 12/28/2020 | 12/26/2025 | 3,211 | 3,161 | 3,211 | 1.3 | % | ||||||||||||||
| Express Wash Acquisition Company, LLC | L+6.50% | 7.50 | % | 9/3/2021 | 12/26/2025 | 7,275 | 7,149 | 7,275 | 2.9 | % | ||||||||||||||
| Express Wash Acquisition Company, LLC (Delayed Draw) (f) (g) | L+6.50% | 7.50 | % | 9/3/2021 | 12/26/2025 | 3,500 | — | — | 0.0 | % | ||||||||||||||
| Express Wash Acquisition Company, LLC (Delayed Draw) (f) (g) | L+6.50% | 7.50 | % | 9/3/2021 | 12/26/2025 | 2,500 | 450 | 450 | 0.2 | % | ||||||||||||||
| Express Wash Acquisition Company, LLC (Revolver) (f) | L+6.50% | 7.50 | % | 12/28/2020 | 12/26/2025 | 750 | 400 | 400 | 0.2 | % | ||||||||||||||
| IDIG Parent, LLC | L+6.00% | 7.00 | % | 12/15/2020 | 12/15/2026 | 5,530 | 5,432 | 5,537 | 2.2 | % | ||||||||||||||
| IDIG Parent, LLC | L+6.00% | 7.00 | % | 12/15/2020 | 12/15/2026 | 918 | 918 | 919 | 0.4 | % | ||||||||||||||
| IDIG Parent, LLC (Revolver) (f) | L+6.00% | 7.00 | % | 12/15/2020 | 12/15/2026 | 429 | — | — | 0.0 | % | ||||||||||||||
| Mammoth Holdings, LLC | L+6.00% | 7.00 | % | 10/16/2018 | 10/16/2023 | 1,945 | 1,927 | 1,947 | 0.8 | % | ||||||||||||||
| Mammoth Holdings, LLC | L+6.00% | 7.00 | % | 10/16/2018 | 10/16/2023 | 4,083 | 4,083 | 4,087 | 1.7 | % | ||||||||||||||
| Mammoth Holdings, LLC (Delayed Draw) (f) (g) | L+6.00% | 7.00 | % | 3/12/2021 | 10/16/2023 | 6,371 | 6,060 | 6,066 | 2.4 | % | ||||||||||||||
| Mammoth Holdings, LLC (Delayed Draw) (f) (g) | L+6.00% | 7.00 | % | 6/15/2021 | 10/16/2023 | 1,646 | — | — | 0.0 | % | ||||||||||||||
| Mammoth Holdings, LLC (Revolver) (f) | L+6.00% | 7.00 | % | 10/16/2018 | 10/16/2023 | 657 | — | — | 0.0 | % | ||||||||||||||
| 38,815 | 29,580 | 29,892 | 12.1 | % | ||||||||||||||||||||
| Telecommunications | ||||||||||||||||||||||||
| Calabrio, Inc. | L+7.00% | 8.00 | % | 4/16/2021 | 4/16/2027 | 3,400 | 3,320 | 3,400 | 1.4 | % | ||||||||||||||
| Calabrio, Inc. (Revolver) (f) | L+7.00% | 8.00 | % | 4/16/2021 | 4/16/2027 | 409 | — | — | 0.0 | % | ||||||||||||||
| 3,809 | 3,320 | 3,400 | 1.4 | % | ||||||||||||||||||||
| Wholesale | ||||||||||||||||||||||||
| Nearly Natural, Inc. (k) | L+11.50% | 8.50% Cash/ 4.00% PIK | 12/15/2017 | 12/15/2022 | 6,535 | 6,498 | 6,535 | 2.6 | % | |||||||||||||||
| Nearly Natural, Inc. | L+11.50% | 8.50% Cash/ 4.00% PIK | 2/16/2021 | 12/15/2022 | 3,068 | 3,027 | 3,068 | 1.2 | % | |||||||||||||||
| Nearly Natural, Inc. (k) | L+11.50% | 8.50% Cash/ 4.00% PIK | 9/22/2020 | 12/15/2022 | 1,689 | 1,670 | 1,689 | 0.7 | % | |||||||||||||||
| Nearly Natural, Inc. (k) | L+11.50% | 8.50% Cash/ 4.00% PIK | 8/28/2019 | 12/15/2022 | 1,840 | 1,840 | 1,840 | 0.8 | % | |||||||||||||||
| Nearly Natural, Inc. (Revolver) | L+11.50% | 8.50% Cash/ 4.00% PIK | 12/15/2017 | 12/15/2022 | 2,406 | 2,406 | 2,406 | 1.0 | % | |||||||||||||||
| 15,538 | 15,441 | 15,538 | 6.3 | % | ||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Senior Secured Loans | 404,168 | 347,397 | 344,455 | 139.7 | % | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of |
| |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) |
| ||
Chemicals, Plastics & Rubber |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Valudor Products LLC |
| L+7.50 | % | 7.67% Cash/ |
| 6/18/2018 |
| 6/19/2023 |
| 1,597 |
| $ | 1,590 |
| $ | 1,914 |
| 0.8 | % |
Valudor Products LLC |
| L+7.50 | % | 9.17 | % | 12/22/2021 |
| 6/19/2023 |
| 502 |
| | 502 |
| | 1,509 |
| 0.6 | % |
Valudor Products LLC (k) |
| L+7.50 | % | 9.17% PIK |
| 6/18/2018 |
| 6/19/2023 |
| 247 |
| | 246 |
| | 243 |
| 0.1 | % |
Valudor Products LLC (Revolver) (f) |
| L+9.50 | % | 11.17 | % | 6/18/2018 |
| 6/19/2023 |
| 1,095 |
| | 589 |
| | 589 |
| 0.3 | % |
|
| | | | | | | | | 3,441 |
| | 2,927 |
| | 4,255 |
| 1.8 | % |
Construction & Building |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Brightly Software Holdings, Inc. (fka Dude Solutions Holdings, Inc.) |
| L+6.25 | % | 8.50 | % | 6/14/2019 |
| 6/13/2025 |
| 9,850 |
| | 9,725 |
| | 9,860 |
| 4.2 | % |
Brightly Software Holdings, Inc. (fka Dude Solutions Holdings, Inc.) (Revolver) (f) |
| L+6.25 | % | 8.50 | % | 6/14/2019 |
| 6/13/2025 |
| 1,304 |
| | 696 |
| | 696 |
| 0.3 | % |
TCFIII OWL Buyer LLC |
| SF+5.50 | % | 7.14 | % | 4/19/2021 |
| 4/17/2026 |
| 2,030 |
| | 2,001 |
| | 2,030 |
| 0.9 | % |
TCFIII OWL Buyer LLC |
| SF+5.50 | % | 7.14 | % | 4/19/2021 |
| 4/17/2026 |
| 2,478 |
| | 2,478 |
| | 2,478 |
| 1.1 | % |
TCFIII OWL Buyer LLC |
| SF+5.50 | % | 7.14 | % | 12/17/2021 |
| 4/17/2026 |
| 2,224 |
| | 2,189 |
| | 2,224 |
| 1.0 | % |
|
| | | | | | | | | 17,886 |
| | 17,089 |
| | 17,288 |
| 7.5 | % |
Consumer Goods: Durable |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Independence Buyer, Inc. |
| L+5.50 | % | 6.79 | % | 8/3/2021 |
| 8/3/2026 |
| 5,970 |
| | 5,870 |
| | 5,955 |
| 2.6 | % |
Independence Buyer, Inc. (Revolver) (f) |
| L+5.50 | % | 6.79 | % | 8/3/2021 |
| 8/3/2026 |
| 1,423 |
| | — |
| | — |
| 0.0 | % |
Recycled Plastics Industries, LLC |
| L+6.75 | % | 7.81 | % | 8/4/2021 |
| 8/4/2026 |
| 3,474 |
| | 3,415 |
| | 3,443 |
| 1.5 | % |
Recycled Plastics Industries, LLC (Revolver) (f) |
| L+6.75 | % | 7.81 | % | 8/4/2021 |
| 8/4/2026 |
| 473 |
| | 95 |
| | 94 |
| 0.0 | % |
|
| | | | | | | | | 11,340 |
| | 9,380 |
| | 9,492 |
| 4.1 | % |
Consumer Goods: Non-Durable |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
The Kyjen Company, LLC |
| L+6.50 | % | 7.99 | % | 5/14/2021 |
| 4/3/2026 |
| 988 |
| | 979 |
| | 983 |
| 0.4 | % |
The Kyjen Company, LLC (Revolver) (f) |
| L+6.50 | % | 8.17 | % | 5/14/2021 |
| 4/3/2026 |
| 105 |
| | 79 |
| | 78 |
| 0.0 | % |
Thrasio, LLC |
| L+7.00 | % | 9.25 | % | 12/18/2020 |
| 12/18/2026 |
| 2,458 |
| | 2,450 |
| | 2,470 |
| 1.1 | % |
|
| | | | | | | | | 3,551 |
| | 3,508 |
| | 3,531 |
| 1.5 | % |
Environmental Industries |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Quest Resource Management Group, LLC |
| L+7.00 | % | 8.06 | % | 10/19/2020 |
| 10/20/2025 |
| 977 |
| | 912 |
| | 959 |
| 0.4 | % |
Quest Resource Management Group, LLC |
| L+7.00 | % | 8.06 | % | 10/19/2020 |
| 10/20/2025 |
| 1,073 |
| | 1,073 |
| | 1,053 |
| 0.4 | % |
Quest Resource Management Group, LLC |
| L+7.00 | % | 8.06 | % | 12/7/2021 |
| 10/20/2025 |
| 3,816 |
| | 3,749 |
| | 3,731 |
| 1.6 | % |
Quest Resource Management Group, LLC (Delayed Draw) (f) (g) |
| L+7.00 | % | 8.06 | % | 12/7/2021 |
| 10/20/2025 |
| 1,774 |
| | 385 |
| | 376 |
| 0.2 | % |
|
| | | | | | | | | 7,640 |
| | 6,119 |
| | 6,119 |
| 2.6 | % |
FIRE: Finance |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
J2 BWA Funding LLC (Delayed Draw) (f) (g) (h) |
| n/a |
| 9.00 | % | 12/24/2020 |
| 12/24/2026 |
| 2,710 |
| | 1,033 |
| | 1,008 |
| 0.4 | % |
Liftforward SPV II, LLC (h) |
| L+10.75 | % | 12.42 | % | 11/10/2016 |
| 9/30/2022 |
| 555 |
| | 555 |
| | 532 |
| 0.2 | % |
Oceana Australian Fixed Income Trust (h) (l) (m) |
| n/a |
| 10.75 | % | 6/29/2021 |
| 6/29/2026 |
| 3,125 |
| | 3,400 |
| | 3,125 |
| 1.4 | % |
Oceana Australian Fixed Income Trust (h) (l) (m) |
| n/a |
| 11.50 | % | 2/25/2021 |
| 2/25/2026 |
| 7,418 |
| | 8,460 |
| | 7,418 |
| 3.2 | % |
W3 Monroe RE Debt LLC (h) |
| n/a |
| 10.00% PIK |
| 2/5/2021 |
| 2/4/2028 |
| 3,053 |
| | 3,053 |
| | 3,053 |
| 1.3 | % |
|
| | | | | | | | | 16,861 |
| | 16,501 |
| | 15,136 |
| 6.5 | % |
9
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
SeptemberJune 30, 20212022
(in thousands, except for shares and units)
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Unitranche Secured Loans (q) | ||||||||||||||||||||||||
| Chemicals, Plastics & Rubber | ||||||||||||||||||||||||
| MFG Chemical, LLC (k) | L+8.00% | 9.00 | % | 6/23/2017 | 6/23/2022 | 6,441 | $ | 6,424 | $ | 6,441 | 2.6 | % | ||||||||||||
| MFG Chemical, LLC | L+8.00% | 9.00 | % | 3/15/2018 | 6/23/2022 | 630 | 630 | 630 | 0.3 | % | ||||||||||||||
| 7,071 | 7,054 | 7,071 | 2.9 | % | ||||||||||||||||||||
| Consumer Goods: Non-Durable | ||||||||||||||||||||||||
| Vinci Brands LLC (fka Incipio, LLC) | n/a | 2.00% PIK | (m) | 7/6/2018 | 2/6/2024 | 7,026 | 7,026 | 6,141 | 2.5 | % | ||||||||||||||
| Vinci Brands LLC (fka Incipio, LLC) (ac) | n/a | 2.00% PIK | (m) | 3/9/2018 | 2/6/2024 | 3,065 | 3,065 | — | 0.0 | % | ||||||||||||||
| Vinci Brands LLC (fka Incipio, LLC) (ad) | n/a | 2.00% PIK | (m) | 12/26/2014 | 2/6/2024 | 13,552 | 13,528 | — | 0.0 | % | ||||||||||||||
| Vinci Brands LLC (fka Incipio, LLC) (ae) | n/a | 2.00% PIK | (m) | 12/26/2014 | 2/6/2024 | 1,149 | 1,149 | — | 0.0 | % | ||||||||||||||
| 24,792 | 24,768 | 6,141 | 2.5 | % | ||||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| Priority Ambulance, LLC (r) | L+6.50% | 7.50 | % | 7/18/2018 | 4/12/2022 | 10,015 | 10,015 | 10,010 | 4.0 | % | ||||||||||||||
| Priority Ambulance, LLC (s) | L+6.50% | 7.50 | % | 4/12/2017 | 4/12/2022 | 1,253 | 1,248 | 1,253 | 0.5 | % | ||||||||||||||
| Priority Ambulance, LLC | L+6.50% | 7.50 | % | 12/13/2018 | 4/12/2022 | 659 | 659 | 659 | 0.3 | % | ||||||||||||||
| Priority Ambulance, LLC | L+6.50% | 7.50 | % | 10/22/2020 | 4/12/2022 | 996 | 996 | 995 | 0.4 | % | ||||||||||||||
| 12,923 | 12,918 | 12,917 | 5.2 | % | ||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Energy Services Group, LLC | L+8.42% | 9.42 | % | 5/4/2017 | 5/4/2022 | 3,781 | 3,773 | 3,781 | 1.5 | % | ||||||||||||||
| Energy Services Group, LLC (h) (t) | L+8.42% | 9.42 | % | 5/4/2017 | 5/4/2022 | 4,588 | 4,517 | 4,588 | 1.9 | % | ||||||||||||||
| Energy Services Group, LLC | L+8.42% | 9.42 | % | 5/4/2017 | 5/4/2022 | 1,076 | 1,063 | 1,076 | 0.4 | % | ||||||||||||||
| WillowTree, LLC | L+5.00% | 6.00 | % | 10/9/2018 | 10/9/2023 | 7,689 | 7,627 | 7,732 | 3.1 | % | ||||||||||||||
| 17,134 | 16,980 | 17,177 | 6.9 | % | ||||||||||||||||||||
| Telecommunications | ||||||||||||||||||||||||
| VB E1, LLC (Delayed Draw) (f) (g) | L+8.50% | 9.00 | % | 11/18/2020 | 11/18/2026 | 2,250 | 1,100 | 1,114 | 0.5 | % | ||||||||||||||
| 2,250 | 1,100 | 1,114 | 0.5 | % | ||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Unitranche Secured Loans | 64,170 | 62,820 | 44,420 | 18.0 | % | |||||||||||||||||||
| Junior Secured Loans | ||||||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| Florida East Coast Industries, LLC (h) | n/a | 16.00% PIK | 8/9/2021 | 6/28/2024 | 1,461 | 1,420 | 1,470 | 0.6 | % | |||||||||||||||
| MoneyLion, Inc. (h) | n/a | 12.00 | % | 8/27/2021 | 5/1/2023 | 1,500 | 1,486 | 1,500 | 0.6 | % | ||||||||||||||
| Witkoff/Monroe 700 JV LLC (Delayed Draw) (f) (g) (h) | n/a | 8.00% Cash/ 4.00% PIK | 7/2/2021 | 7/2/2026 | 5,500 | 4,472 | 4,534 | 1.8 | % | |||||||||||||||
| 8,461 | 7,378 | 7,504 | 3.0 | % | ||||||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| Education Corporation of America | L+11.00% | 5.63% Cash/ 5.50% PIK | (m) | 9/3/2015 | n/a | (p) | 833 | 831 | 576 | 0.2 | % | |||||||||||||
| 833 | 831 | 576 | 0.2 | % | ||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Junior Secured Loans | 9,294 | 8,209 | 8,080 | 3.2 | % | |||||||||||||||||||
| Equity Securities (u) (v) | ||||||||||||||||||||||||
| Automotive | ||||||||||||||||||||||||
| Born To Run, LLC (269,438 Class A units) | — | — | (w) | 4/1/2021 | — | — | 269 | 283 | 0.1 | % | ||||||||||||||
| Lifted Trucks Holdings, LLC (111,111 Class A units) (x) | — | — | (w) | 8/2/2021 | — | — | 111 | 110 | 0.1 | % | ||||||||||||||
| 380 | 393 | 0.2 | % | |||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| J2 BWA Funding LLC (0.7% profit sharing) (h) (x) | — | — | (w) | 12/24/2020 | — | — | — | — | 0.0 | % | ||||||||||||||
| MV Realty Holdings, LLC (729 common units) (h) (x) | — | — | (w) | 7/29/2021 | — | — | 300 | 295 | 0.2 | % | ||||||||||||||
| MV Realty Holdings, LLC (warrant to purchase up to 0.8% of the equity) (h) (x) | — | — | (w) | 7/28/2021 | 7/28/2031 | — | 363 | 532 | 0.2 | % | ||||||||||||||
| PKS Holdings, LLC (5,680 preferred units) (h) | n/a | 12.00% PIK | 11/30/2017 | — | — | 58 | 229 | 0.1 | % | |||||||||||||||
| PKS Holdings, LLC (5,714 preferred units) (h) | n/a | 12.00% PIK | 11/30/2017 | — | — | 9 | 35 | 0.0 | % | |||||||||||||||
| PKS Holdings, LLC (132 preferred units) (h) | n/a | 12.00% PIK | 11/30/2017 | — | — | 1 | 5 | 0.0 | % | |||||||||||||||
| PKS Holdings, LLC (916 preferred units) (h) | n/a | 12.00% PIK | 11/30/2017 | — | — | 9 | 35 | 0.0 | % | |||||||||||||||
| Witkoff/Monroe 700 JV LLC (2,141 preferred units) (h) (x) | n/a | 8.00% Cash/ 4.00% PIK | 7/2/2021 | — | — | 2 | 2 | 0.0 | % | |||||||||||||||
| 742 | 1,133 | 0.5 | % | |||||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||||||
| California Pizza Kitchen, Inc. (78,699 common units) | — | — | (w) | 8/19/2016 | — | — | 5,468 | 4,643 | 1.9 | % | ||||||||||||||
| 5,468 | 4,643 | 1.9 | % | |||||||||||||||||||||
| Capital Equipment | ||||||||||||||||||||||||
| MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) (x) | — | — | (w) | 2/28/2020 | — | — | 119 | 168 | 0.1 | % | ||||||||||||||
| 119 | 168 | 0.1 | % | |||||||||||||||||||||
| Chemicals, Plastics & Rubber | ||||||||||||||||||||||||
| Valudor Products LLC (501,014 Class A-1 units) (x) | n/a | 10.00% PIK | 6/18/2018 | — | — | 501 | 169 | 0.1 | % | |||||||||||||||
| 501 | 169 | 0.1 | % | |||||||||||||||||||||
| Consumer Goods: Durable | ||||||||||||||||||||||||
| Independence Buyer, Inc. (81 Class A units) | — | — | (w) | 8/3/2021 | — | — | 81 | 92 | 0.0 | % | ||||||||||||||
| 81 | 92 | 0.0 | % | |||||||||||||||||||||
| Environmental Industries | ||||||||||||||||||||||||
| Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) | — | — | (w) | 10/19/2020 | 3/19/2028 | — | 67 | 204 | 0.1 | % | ||||||||||||||
| 67 | 204 | 0.1 | % | |||||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| Dorado Acquisition, Inc. (178,891 Class A-1 units) | — | — | (w) | 6/30/2021 | — | — | 179 | 179 | 0.1 | % | ||||||||||||||
| Dorado Acquisition, Inc. (178,891 Class A-2 units) | — | — | (w) | 6/30/2021 | — | — | — | 14 | 0.0 | % | ||||||||||||||
| NationsBenefits, LLC (888,889 Series A units) (x) | n/a | 9.00% PIK | 8/20/2021 | — | — | 736 | 729 | 0.3 | % | |||||||||||||||
| NationsBenefits, LLC (106,667 common units) (x) | — | — | (w) | 8/20/2021 | — | — | 153 | 151 | 0.1 | % | ||||||||||||||
| Seran BioScience, LLC (33,333 common units) (x) | — | — | (w) | 12/31/2020 | — | — | 334 | 665 | 0.2 | % | ||||||||||||||
| 1,402 | 1,738 | 0.7 | % | |||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Answers Finance, LLC (76,539 shares of common stock) | — | — | (w) | 4/14/2017 | — | — | 2,284 | 11 | 0.0 | % | ||||||||||||||
| MarkLogic Corporation (290,239 Class A units) | — | — | (w) | 10/20/2020 | — | — | 290 | 408 | 0.2 | % | ||||||||||||||
| Planful, Inc. (473,082 Class A units) | n/a | 8.00% PIK | 12/28/2018 | — | — | 473 | 565 | 0.2 | % | |||||||||||||||
| Recorded Future, Inc. (80,486 Class A units) (y) | — | — | (w) | 7/3/2019 | — | — | 81 | 192 | 0.1 | % | ||||||||||||||
| 3,128 | 1,176 | 0.5 | % | |||||||||||||||||||||
| Hotels, Gaming & Leisure | ||||||||||||||||||||||||
| Equine Network, LLC (99 Class A units) (x) | — | — | (w) | 12/31/2020 | — | — | 99 | 96 | 0.0 | % | ||||||||||||||
| 99 | 96 | 0.0 | % | |||||||||||||||||||||
| Media: Advertising, Printing & Publishing | ||||||||||||||||||||||||
| AdTheorent, Inc. (128,866 Class A voting units) | — | — | (w) | 12/22/2016 | — | — | 129 | 1,763 | 0.7 | % | ||||||||||||||
| InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) (h) (j) | — | — | (w) | 9/18/2015 | 9/18/2025 | — | — | 1,963 | 0.8 | % | ||||||||||||||
| Relevate Health Group, LLC (40 preferred units) | n/a | 12.00% PIK | 11/20/2020 | — | — | 40 | 40 | 0.0 | % | |||||||||||||||
| Relevate Health Group, LLC (40 Class B common units) | — | — | (w) | 11/20/2020 | — | — | — | 1 | 0.0 | % | ||||||||||||||
| XanEdu Publishing, Inc. (49,479 Class A units) | n/a | 8.00% PIK | 1/28/2020 | — | — | 49 | 102 | 0.0 | % | |||||||||||||||
| 218 | 3,869 | 1.5 | % | |||||||||||||||||||||
| Media: Diversified & Production | ||||||||||||||||||||||||
| Attom Intermediate Holdco, LLC (297,197 Class A units) (x) | — | — | (w) | 1/4/2019 | — | — | 297 | 490 | 0.2 | % | ||||||||||||||
| 297 | 490 | 0.2 | % | |||||||||||||||||||||
| Retail | ||||||||||||||||||||||||
| BLST Operating Company, LLC (139,883 Class A units) (x) | — | — | (w) | 8/28/2020 | — | — | 712 | 350 | 0.1 | % | ||||||||||||||
| Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity) (k) | — | — | (w) | 1/14/2020 | 1/14/2029 | — | — | 518 | 0.2 | % | ||||||||||||||
| 712 | 868 | 0.3 | % | |||||||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| APCO Worldwide, Inc. (100 Class A voting common stock) | — | — | (w) | 11/1/2017 | — | — | 395 | 433 | 0.2 | % | ||||||||||||||
| Atlas Sign Industries of FLA, LLC (warrant to purchase up to 3.0% of the equity) (k) | — | — | (w) | 5/14/2018 | 5/14/2026 | — | 125 | 239 | 0.1 | % | ||||||||||||||
| 520 | 672 | 0.3 | % | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of |
| |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) | | ||
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | |
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (h) |
| SF+8.25 | % | 9.38 | % | 5/3/2022 |
| 4/30/2025 |
| 3,300 | | $ | 3,237 |
| $ | 3,300 |
| 1.4 | % |
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (Delayed Draw) (f) (g) (h) |
| SF+8.25 | % | 9.51 | % | 5/3/2022 |
| 4/30/2025 |
| 337 | |
| 116 |
| | 116 |
| 0.0 | % |
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (Revolver) (f) (h) |
| SF+8.25 | % | 9.38 | % | 5/3/2022 |
| 4/30/2025 |
| 1,653 | |
| — |
| | — |
| 0.0 | % |
Florida East Coast Industries, LLC (h) |
| n/a |
| 10.50 | % | 8/9/2021 |
| 6/28/2024 |
| 2,084 | |
| 2,039 |
| | 2,063 |
| 0.9 | % |
NCBP Property, LLC (h) |
| L+9.50 | % | 10.56 | % | 12/18/2020 |
| 12/16/2022 |
| 1,950 | |
| 1,946 |
| | 1,955 |
| 0.9 | % |
|
| | | | | | | | | 9,324 | |
| 7,338 |
| | 7,434 |
| 3.2 | % |
Healthcare & Pharmaceuticals |
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| |
Apotheco, LLC |
| L+8.50 | % | 7.17% Cash/ |
| 4/8/2019 |
| 4/8/2024 |
| 3,670 | |
| 3,642 |
| | 3,670 |
| 1.6 | % |
Apotheco, LLC (Revolver) |
| L+8.50 | % | 7.17% Cash/ |
| 4/8/2019 |
| 4/8/2024 |
| 970 | |
| 970 |
| | 970 |
| 0.4 | % |
Brickell Bay Acquisition Corp. |
| L+6.50 | % | 7.50 | % | 2/12/2021 |
| 2/12/2026 |
| 1,890 | |
| 1,858 |
| | 1,880 |
| 0.8 | % |
Brickell Bay Acquisition Corp. (Delayed Draw) (f) (g) |
| L+6.50 | % | 7.50 | % | 2/12/2021 |
| 2/12/2026 |
| 382 | |
| — |
| | — |
| 0.0 | % |
Caravel Autism Health, LLC |
| SF+8.75 | % | 6.75% Cash/ |
| 6/30/2021 |
| 6/30/2027 |
| 4,975 | |
| 4,889 |
| | 4,546 |
| 2.0 | % |
Caravel Autism Health, LLC (Delayed Draw) (f) (g) |
| SF+8.75 | % | 6.75% Cash/ |
| 6/30/2021 |
| 6/30/2027 |
| 3,749 | |
| 186 |
| | 170 |
| 0.1 | % |
Caravel Autism Health, LLC (Revolver) (f) |
| SF+8.75 | % | 6.75% Cash/ |
| 6/30/2021 |
| 6/30/2027 |
| 1,250 | |
| 625 |
| | 571 |
| 0.2 | % |
Dorado Acquisition, Inc. |
| L+6.25 | % | 7.25 | % | 6/30/2021 |
| 6/30/2026 |
| 4,963 | |
| 4,880 |
| | 4,980 |
| 2.1 | % |
Dorado Acquisition, Inc. (Delayed Draw) (f) (g) |
| L+6.25 | % | 7.25 | % | 6/30/2021 |
| 6/30/2026 |
| 216 | |
| — |
| | — |
| 0.0 | % |
Dorado Acquisition, Inc. (Revolver) (f) |
| L+6.25 | % | 7.25 | % | 6/30/2021 |
| 6/30/2026 |
| 596 | |
| — |
| | — |
| 0.0 | % |
INH Buyer, Inc. |
| L+6.00 | % | 8.25 | % | 6/30/2021 |
| 6/28/2028 |
| 2,924 | |
| 2,898 |
| | 2,762 |
| 1.2 | % |
NationsBenefits, LLC |
| SF+7.00 | % | 8.15 | % | 8/20/2021 |
| 8/20/2026 |
| 3,980 | |
| 3,912 |
| | 4,020 |
| 1.7 | % |
NationsBenefits, LLC (Revolver) (f) |
| SF+7.00 | % | 8.15 | % | 8/20/2021 |
| 8/20/2026 |
| 445 | |
| — |
| | — |
| 0.0 | % |
Rockdale Blackhawk, LLC |
| n/a |
| n/a | (n) | 3/31/2015 |
| n/a | (o) | — | |
| — |
| | 1,102 |
| 0.5 | % |
Seran BioScience, LLC |
| L+6.25 | % | 7.25 | % | 12/31/2020 |
| 7/8/2027 |
| 2,469 | |
| 2,433 |
| | 2,469 |
| 1.1 | % |
Seran BioScience, LLC (Revolver) (f) |
| L+6.25 | % | 7.25 | % | 12/31/2020 |
| 7/8/2027 |
| 444 | |
| — |
| | — |
| 0.0 | % |
TigerConnect, Inc. |
| SF+6.75 | % | 7.75 | % | 2/16/2022 |
| 2/16/2028 |
| 3,000 | |
| 2,944 |
| | 2,966 |
| 1.3 | % |
TigerConnect, Inc. (Delayed Draw) (f) (g) |
| SF+6.75 | % | 7.75 | % | 2/16/2022 |
| 2/16/2028 |
| 124 | |
| — |
| | — |
| 0.0 | % |
TigerConnect, Inc. (Revolver) (f) |
| SF+6.75 | % | 7.75 | % | 2/16/2022 |
| 2/16/2028 |
| 429 | |
| — |
| | — |
| 0.0 | % |
Whistler Parent Holdings III, Inc. |
| SF+6.75 | % | 8.38 | % | 6/3/2022 |
| 6/2/2028 |
| 4,500 | |
| 4,410 |
| | 4,410 |
| 1.9 | % |
Whistler Parent Holdings III, Inc. (Delayed Draw) (f) (g) |
| SF+6.75 | % | 8.38 | % | 6/3/2022 |
| 6/2/2028 |
| 1,406 | |
| — |
| | — |
| 0.0 | % |
Whistler Parent Holdings III, Inc. (Revolver) (f) |
| SF+6.75 | % | 8.38 | % | 6/3/2022 |
| 6/2/2028 |
| 563 | |
| — |
| | — |
| 0.0 | % |
|
| | | | | | | | | 42,945 | |
| 33,647 |
| | 34,516 |
| 14.9 | % |
10
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
SeptemberJune 30, 20212022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of |
| |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) | | ||
High Tech Industries |
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| |
Arcstor Midco, LLC |
| L+7.00 | % | 9.25 | % | 3/16/2021 |
| 3/16/2027 |
| 4,444 | | $ | 4,370 |
| $ | 4,180 |
| 1.8 | % |
MarkLogic Corporation |
| L+6.50 | % | 7.79 | % | 10/20/2020 |
| 10/20/2025 |
| 3,448 | |
| 3,388 |
| | 3,425 |
| 1.5 | % |
MarkLogic Corporation |
| L+6.50 | % | 7.79 | % | 11/23/2021 |
| 10/20/2025 |
| 321 | |
| 316 |
| | 319 |
| 0.1 | % |
MarkLogic Corporation |
| SF+6.50 | % | 7.95 | % | 11/23/2021 |
| 10/20/2025 |
| 215 | |
| 215 |
| | 214 |
| 0.1 | % |
MarkLogic Corporation |
| SF+6.50 | % | 7.95 | % | 5/10/2022 |
| 10/20/2025 |
| 2,682 | |
| 2,630 |
| | 2,664 |
| 1.1 | % |
MarkLogic Corporation (Revolver) (f) |
| SF+6.50 | % | 7.95 | % | 10/20/2020 |
| 10/20/2025 |
| 269 | |
| — |
| | — |
| 0.0 | % |
Mindbody, Inc. |
| L+8.50 | % | 8.38% Cash/ |
| 2/15/2019 |
| 2/14/2025 |
| 6,536 | |
| 6,476 |
| | 6,533 |
| 2.8 | % |
Mindbody, Inc. |
| L+8.50 | % | 8.38% Cash/ |
| 9/22/2021 |
| 2/14/2025 |
| 674 | |
| 674 |
| | 673 |
| 0.3 | % |
Mindbody, Inc. (Revolver) (f) |
| L+8.00 | % | 9.38 | % | 2/15/2019 |
| 2/14/2025 |
| 667 | |
| — |
| | — |
| 0.0 | % |
Newforma, Inc. |
| L+5.50 | % | 7.75 | % | 6/30/2017 |
| 3/31/2023 |
| 3,077 | |
| 3,075 |
| | 3,077 |
| 1.3 | % |
Newforma, Inc. (Revolver) (f) |
| L+5.50 | % | 7.75 | % | 6/30/2017 |
| 3/31/2023 |
| 1,250 | |
| — |
| | — |
| 0.0 | % |
Planful, Inc. |
| L+6.50 | % | 7.56 | % | 12/28/2018 |
| 12/30/2024 |
| 9,500 | |
| 9,436 |
| | 9,462 |
| 4.1 | % |
Planful, Inc. |
| L+6.50 | % | 7.56 | % | 1/11/2021 |
| 12/30/2024 |
| 1,325 | |
| 1,325 |
| | 1,320 |
| 0.6 | % |
Planful, Inc. |
| L+6.50 | % | 7.56 | % | 2/11/2022 |
| 12/30/2024 |
| 884 | |
| 884 |
| | 880 |
| 0.4 | % |
Planful, Inc. (Revolver) |
| L+6.50 | % | 7.56 | % | 12/28/2018 |
| 12/30/2024 |
| 442 | |
| 442 |
| | 440 |
| 0.2 | % |
|
| | | | | | | | | 35,734 | |
| 33,231 |
| | 33,187 |
| 14.3 | % |
Hotels, Gaming & Leisure |
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| |
Equine Network, LLC |
| SF+8.00 | % | 9.05 | % | 12/31/2020 |
| 12/31/2025 |
| 1,728 | |
| 1,700 |
| | 1,704 |
| 0.7 | % |
Equine Network, LLC |
| SF+8.00 | % | 9.05 | % | 1/29/2021 |
| 12/31/2025 |
| 784 | |
| 772 |
| | 773 |
| 0.3 | % |
Equine Network, LLC (Delayed Draw) (f) (g) |
| SF+8.00 | % | 9.05 | % | 12/31/2020 |
| 12/31/2025 |
| 427 | |
| — |
| | — |
| 0.0 | % |
Equine Network, LLC (Revolver) (f) |
| SF+8.00 | % | 9.05 | % | 12/31/2020 |
| 12/31/2025 |
| 171 | |
| 85 |
| | 84 |
| 0.1 | % |
|
| | | | | | | | | 3,110 | |
| 2,557 |
| | 2,561 |
| 1.1 | % |
Media: Advertising, Printing & Publishing |
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| |
Destination Media, Inc. |
| SF+5.50 | % | 7.14 | % | 4/7/2017 |
| 10/7/2022 |
| 1,093 | |
| 1,093 |
| | 1,093 |
| 0.5 | % |
Destination Media, Inc. (Revolver) (f) |
| SF+5.50 | % | 7.14 | % | 4/7/2017 |
| 10/7/2022 |
| 542 | |
| — |
| | — |
| 0.0 | % |
North Haven USHC Acquisition, Inc. |
| L+6.00 | % | 8.25 | % | 10/30/2020 |
| 10/30/2025 |
| 2,463 | |
| 2,428 |
| | 2,447 |
| 1.1 | % |
North Haven USHC Acquisition, Inc. |
| L+6.00 | % | 8.25 | % | 3/12/2021 |
| 10/30/2025 |
| 713 | |
| 713 |
| | 709 |
| 0.3 | % |
North Haven USHC Acquisition, Inc. (Delayed Draw) (f) (g) |
| L+6.00 | % | 8.25 | % | 9/3/2021 |
| 10/30/2025 |
| 1,439 | |
| 479 |
| | 477 |
| 0.2 | % |
North Haven USHC Acquisition, Inc. (Revolver) (f) |
| L+6.00 | % | 8.25 | % | 10/30/2020 |
| 10/30/2025 |
| 240 | |
| — |
| | — |
| 0.0 | % |
Relevate Health Group, LLC |
| SF+6.00 | % | 7.15 | % | 11/20/2020 |
| 11/20/2025 |
| 1,481 | |
| 1,460 |
| | 1,469 |
| 0.6 | % |
Relevate Health Group, LLC (Delayed Draw) (f) (g) |
| SF+6.00 | % | 7.15 | % | 11/20/2020 |
| 11/20/2025 |
| 781 | |
| 663 |
| | 657 |
| 0.3 | % |
Relevate Health Group, LLC (Revolver) (f) |
| SF+6.00 | % | 7.15 | % | 11/20/2020 |
| 11/20/2025 |
| 316 | |
| — |
| | — |
| 0.0 | % |
Spherix Global Inc. |
| SF+6.00 | % | 7.16 | % | 12/22/2021 |
| 12/22/2026 |
| 1,097 | |
| 1,080 |
| | 1,093 |
| 0.4 | % |
Spherix Global Inc. (Revolver) (f) |
| SF+6.00 | % | 7.16 | % | 12/22/2021 |
| 12/22/2026 |
| 122 | |
| — |
| | — |
| 0.0 | % |
XanEdu Publishing, Inc. |
| L+6.50 | % | 8.17 | % | 1/28/2020 |
| 1/28/2025 |
| 4,607 | |
| 4,543 |
| | 4,610 |
| 2.0 | % |
XanEdu Publishing, Inc. (Revolver) (f) |
| L+6.50 | % | 8.75 | % | 1/28/2020 |
| 1/28/2025 |
| 742 | |
| 198 |
| | 198 |
| 0.1 | % |
|
| | | | | | | | | 15,636 | |
| 12,657 |
| | 12,753 |
| 5.5 | % |
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| Education Corporation of America - Series G Preferred Stock (8,333 shares) | n/a | 12.00% PIK | (m) | 9/3/2015 | — | — | $ | 7,492 | $ | 3,272 | 1.3 | % | ||||||||||||
| Express Wash Acquisition Company, LLC (120,492 Class A units) (x) | n/a | 8.00% PIK | 12/28/2020 | — | — | 120 | 208 | 0.1 | % | |||||||||||||||
| IDIG Parent, LLC (245,958 shares of common stock) (x) (z) | — | — | (w) | 1/4/2021 | — | — | 248 | 399 | 0.2 | % | ||||||||||||||
| 7,860 | 3,879 | 1.6 | % | |||||||||||||||||||||
| Wholesale | ||||||||||||||||||||||||
| Nearly Natural, Inc. (152,174 Class A units) | — | — | (w) | 12/15/2017 | — | — | 153 | 109 | 0.0 | % | ||||||||||||||
| Nearly Natural, Inc. (17,585 Class AA units) | — | — | (w) | 8/27/2021 | — | — | 18 | 13 | 0.0 | % | ||||||||||||||
| 171 | 122 | 0.0 | % | |||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Equity Securities | 21,765 | 19,712 | 8.0 | % | ||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Company Investments | $ | 440,191 | $ | 416,667 | 168.9 | % | ||||||||||||||||||
| Non-Controlled Affiliate Company Investments (aa) | ||||||||||||||||||||||||
| Senior Secured Loans | ||||||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 7/22/2014 | 12/31/2021 | 10,159 | $ | 10,159 | $ | 10,159 | 4.1 | % | |||||||||||||
| American Community Homes, Inc. | L+14.50% | 16.00% PIK | 7/22/2014 | 12/31/2021 | 4,566 | 4,566 | 4,566 | 1.9 | % | |||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 5/24/2017 | 12/31/2021 | 616 | 616 | 616 | �� | 0.2 | % | ||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 8/10/2018 | 12/31/2021 | 2,264 | 2,264 | 3,098 | 1.3 | % | |||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 3/29/2019 | 12/31/2021 | 4,192 | 4,192 | 4,234 | 1.7 | % | |||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 9/30/2019 | 12/31/2021 | 20 | 20 | 20 | 0.0 | % | |||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 12/30/2019 | 12/31/2021 | 96 | 96 | 96 | 0.0 | % | |||||||||||||||
| HFZ Capital Group LLC (h) (ab) | L+12.50% | 14.00% PIK | 10/20/2017 | n/a | (p) | 13,242 | 13,242 | 14,814 | 6.0 | % | ||||||||||||||
| HFZ Capital Group LLC (h) (ab) | L+12.50% | 14.00% PIK | 10/20/2017 | n/a | (p) | 4,758 | 4,758 | 5,322 | 2.2 | % | ||||||||||||||
| MC Asset Management (Corporate), LLC (h) | L+15.00% | 16.00% PIK | 1/26/2021 | 1/26/2024 | 6,873 | 6,873 | 6,873 | 2.8 | % | |||||||||||||||
| MC Asset Management (Corporate), LLC (Delayed Draw) (f) (g) (h) | L+15.00% | 16.00% PIK | 4/26/2021 | 1/26/2024 | 1,586 | 816 | 816 | 0.3 | % | |||||||||||||||
| MC Asset Management (Industrial), LLC (h) (ab) | L+17.00% | 18.00% PIK | 6/11/2019 | 10/30/2024 | 501 | 501 | 501 | 0.2 | % | |||||||||||||||
| Second Avenue SFR Holdings II LLC (Revolver) (f) (h) | L+7.00% | 7.50 | % | 8/11/2021 | 8/9/2024 | 4,875 | 642 | 642 | 0.3 | % | ||||||||||||||
| 53,748 | 48,745 | 51,757 | 21.0 | % | ||||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||||||
| TJ Management HoldCo LLC (Revolver) (f) (l) | L+5.50% | 6.50 | % | 9/9/2020 | 6/28/2024 | 477 | — | — | 0.0 | % | ||||||||||||||
| 477 | — | — | 0.0 | % | ||||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| Ascent Midco, LLC (k) | L+5.50% | 6.50 | % | 2/5/2020 | 2/5/2025 | 6,409 | 6,320 | 6,473 | 2.6 | % | ||||||||||||||
| Ascent Midco, LLC (Revolver) (f) | L+5.50% | 6.50 | % | 2/5/2020 | 2/5/2025 | 1,129 | — | — | 0.0 | % | ||||||||||||||
| SHI Holdings, Inc. (k) | L+10.75% | 10.84% PIK | (m) | 7/10/2014 | n/a | (p) | 2,899 | 2,897 | 131 | 0.1 | % | |||||||||||||
| SHI Holdings, Inc. (Revolver) (f) | L+10.75% | 10.84% PIK | (m) | 7/10/2014 | n/a | (p) | 4,667 | 4,585 | 208 | 0.1 | % | |||||||||||||
| 15,104 | 13,802 | 6,812 | 2.8 | % | ||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Mnine Holdings, Inc. | L+8.00% | 4.00% Cash/ 5.00% PIK | 11/2/2018 | 12/30/2022 | 12,026 | 11,950 | 12,595 | 5.1 | % | |||||||||||||||
| 12,026 | 11,950 | 12,595 | 5.1 | % | ||||||||||||||||||||
| Retail | ||||||||||||||||||||||||
| Luxury Optical Holdings Co. | L+8.00% | 9.00% PIK | 9/12/2014 | 12/15/2021 | 1,615 | 1,615 | 1,602 | 0.6 | % | |||||||||||||||
| Luxury Optical Holdings Co. (Delayed Draw) (f) (g) | L+11.50% | 12.50 | % | 9/29/2017 | 12/15/2021 | 3,565 | 2,260 | 2,353 | 1.0 | % | ||||||||||||||
| Luxury Optical Holdings Co. (Revolver) | L+8.00% | 9.00% PIK | 9/12/2014 | 12/15/2021 | 74 | 74 | 74 | 0.0 | % | |||||||||||||||
| 5,254 | 3,949 | 4,029 | 1.6 | % | ||||||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| Curion Holdings, LLC (k) | n/a | 14.00% PIK | (m) | 5/2/2017 | 5/2/2022 | 4,226 | 4,189 | 3,890 | 1.6 | % | ||||||||||||||
| Curion Holdings, LLC (Revolver) (f) | n/a | 14.00% PIK | (m) | 5/2/2017 | 5/2/2022 | 871 | 836 | 830 | 0.3 | % | ||||||||||||||
| 5,097 | 5,025 | 4,720 | 1.9 | % | ||||||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| NECB Collections, LLC (Revolver) (f) | L+11.00% | 12.00% PIK | (m) | 6/25/2019 | n/a | (p) | 1,356 | 1,312 | 687 | 0.3 | % | |||||||||||||
| 1,356 | 1,312 | 687 | 0.3 | % | ||||||||||||||||||||
| Total Non-Controlled Affiliate Senior Secured Loans | 93,062 | 84,783 | 80,600 | 32.7 | % | |||||||||||||||||||
| Junior Secured Loans | ||||||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| Second Avenue SFR Holdings II LLC (Delayed Draw) (f) (g) (h) | n/a | 8.00 | % | 8/6/2021 | 7/28/2028 | 5,850 | 1,101 | 1,101 | 0.5 | % | ||||||||||||||
| 5,850 | 1,101 | 1,101 | 0.5 | % | ||||||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| Curion Holdings, LLC (k) | n/a | 15.00% PIK | (m) | 8/17/2018 | 1/2/2023 | 1,720 | 1 | — | 0.0 | % | ||||||||||||||
| Curion Holdings, LLC (k) | n/a | 15.00% PIK | (m) | 8/17/2018 | 1/2/2023 | 44 | — | — | 0.0 | % | ||||||||||||||
| 1,764 | 1 | — | 0.0 | % | ||||||||||||||||||||
| Total Non-Controlled Affiliate Company Junior Secured Loans | 7,614 | 1,102 | 1,101 | 0.5 | % | |||||||||||||||||||
| Equity Securities (v) (aa) | ||||||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) | — | — | (w) | 10/9/2014 | 12/18/2024 | — | — | 350 | 0.1 | % | ||||||||||||||
| MC Asset Management (Corporate), LLC (15.9% of interests) (h) (x) (ab) | — | — | (w) | 6/11/2019 | — | — | 793 | 720 | 0.3 | % | ||||||||||||||
| Second Avenue SFR Holdings II LLC (24.4% of interests) (h) (af) | — | — | (w) | 8/6/2021 | — | — | 734 | 734 | 0.3 | % | ||||||||||||||
| 1,527 | 1,804 | 0.7 | % | |||||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||||||
| TJ Management HoldCo LLC (16 shares of common stock) (l) (x) | — | — | (w) | 9/9/2020 | — | — | 1,631 | 3,085 | 1.2 | % | ||||||||||||||
| 1,631 | 3,085 | 1.2 | % | |||||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| Ascent Midco, LLC (2,032,258 Class A units) (x) | n/a | 8.00% PIK | 2/5/2020 | — | — | 2,032 | 3,111 | 1.2 | % | |||||||||||||||
| Familia Dental Group Holdings, LLC (1,052 Class A units) (x) (ag) | — | — | (w) | 4/8/2016 | — | — | 3,602 | 2,441 | 1.0 | % | ||||||||||||||
| SHI Holdings, Inc. (24 shares of common stock) | — | — | (w) | 12/14/2016 | — | — | 27 | — | 0.0 | % | ||||||||||||||
| 5,661 | 5,552 | 2.2 | % | |||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Mnine Holdings, Inc. (6,400 Class B units) | — | — | (w) | 6/30/2020 | — | — | — | — | 0.0 | % | ||||||||||||||
| — | — | 0.0 | % | |||||||||||||||||||||
| Retail | ||||||||||||||||||||||||
| Luxury Optical Holdings Co. (91 preferred units) | n/a | 15.00% PIK | 9/12/2014 | — | — | 4,325 | 3,604 | 1.5 | % | |||||||||||||||
| Luxury Optical Holdings Co. (86 shares of common stock) | — | — | (w) | 9/29/2017 | — | — | — | — | 0.0 | % | ||||||||||||||
| 4,325 | 3,604 | 1.5 | % | |||||||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| Curion Holdings, LLC (58,779 shares of common stock) (k) | — | — | (w) | 8/17/2018 | — | — | — | — | 0.0 | % | ||||||||||||||
| — | — | 0.0 | % | |||||||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| NECB Collections, LLC (20.8% of units) (x) | — | — | (w) | 6/21/2019 | — | — | 1,458 | — | 0.0 | % | ||||||||||||||
| 1,458 | — | 0.0 | % | |||||||||||||||||||||
| Total Non-Controlled Affiliate Equity Securities | 14,602 | 14,045 | 5.6 | % | ||||||||||||||||||||
| Total Non-Controlled Affiliate Company Investments | $ | 100,487 | $ | 95,746 | 38.8 | % | ||||||||||||||||||
| Controlled Affiliate Company Investments (ah) | ||||||||||||||||||||||||
| Equity Securities | ||||||||||||||||||||||||
| Investment Funds & Vehicles | ||||||||||||||||||||||||
| MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) (h) | — | — | 10/31/2017 | — | — | $ | 42,150 | $ | 41,331 | 16.8 | % | |||||||||||||
| Total Controlled Affiliate Equity Securities | 42,150 | 41,331 | 16.8 | % | ||||||||||||||||||||
| Total Controlled Affiliate Company Investments | $ | 42,150 | $ | 41,331 | 16.8 | % | ||||||||||||||||||
| TOTAL INVESTMENTS | $ | 582,828 | $ | 553,744 | 224.5 | % | ||||||||||||||||||
10
11
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
SeptemberJune 30, 20212022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of | | |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) | | ||
Media: Broadcasting & Subscription |
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| |
Vice Group Holding Inc. |
| L+12.00 | % | 5.50% Cash/ |
| 5/2/2019 |
| 11/2/2022 |
| 1,604 | | $ | 1,602 |
| $ | 1,597 |
| 0.7 | % |
Vice Group Holding Inc. |
| L+12.00 | % | 5.50% Cash/ |
| 11/4/2019 |
| 11/2/2022 |
| 308 | |
| 307 |
| | 307 |
| 0.1 | % |
Vice Group Holding Inc. |
| L+12.00 | % | 5.50% Cash/ |
| 5/2/2019 |
| 11/2/2022 |
| 503 | |
| 503 |
| | 501 |
| 0.2 | % |
Vice Group Holding Inc. |
| L+12.00 | % | 5.50% Cash/ |
| 5/2/2019 |
| 11/2/2022 |
| 189 | |
| 189 |
| | 189 |
| 0.1 | % |
|
| | | | | | | | | 2,604 | |
| 2,601 |
| | 2,594 |
| 1.1 | % |
Media: Diversified & Production |
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| |
Attom Intermediate Holdco, LLC |
| L+6.15 | % | 7.82 | % | 1/4/2019 |
| 1/4/2024 |
| 1,930 | |
| 1,917 |
| | 1,929 |
| 0.9 | % |
Attom Intermediate Holdco, LLC |
| L+6.15 | % | 7.82 | % | 6/25/2020 |
| 1/4/2024 |
| 470 | |
| 466 |
| | 470 |
| 0.2 | % |
Attom Intermediate Holdco, LLC |
| L+6.15 | % | 7.82 | % | 7/1/2021 |
| 1/4/2024 |
| 277 | |
| 273 |
| | 277 |
| 0.1 | % |
Attom Intermediate Holdco, LLC (Revolver) (f) |
| L+5.75 | % | 7.42 | % | 1/4/2019 |
| 1/4/2024 |
| 320 | |
| 224 |
| | 224 |
| 0.1 | % |
Bonterra, LLC (fka Cybergrants Holdings) |
| L+6.50 | % | 8.75 | % | 9/8/2021 |
| 9/8/2027 |
| 12,799 | |
| 12,633 |
| | 12,543 |
| 5.4 | % |
Bonterra, LLC (fka Cybergrants Holdings) (Delayed Draw) (f) (g) |
| L+6.50 | % | 8.75 | % | 9/8/2021 |
| 9/8/2027 |
| 2,302 | |
| — |
| | — |
| 0.0 | % |
Bonterra, LLC (fka Cybergrants Holdings) (Revolver) (f) |
| L+6.50 | % | 8.75 | % | 9/8/2021 |
| 9/8/2027 |
| 1,069 | |
| 652 |
| | 639 |
| 0.3 | % |
Chess.com, LLC |
| L+6.50 | % | 8.75 | % | 12/31/2021 |
| 12/31/2027 |
| 5,985 | |
| 5,875 |
| | 5,925 |
| 2.6 | % |
Chess.com, LLC (Revolver) (f) |
| L+6.50 | % | 8.75 | % | 12/31/2021 |
| 12/31/2027 |
| 652 | |
| — |
| | — |
| 0.0 | % |
Crownpeak Technology, Inc. |
| L+5.75 | % | 6.81 | % | 2/28/2019 |
| 2/28/2024 |
| 4,000 | |
| 3,971 |
| | 3,984 |
| 1.7 | % |
Crownpeak Technology, Inc. |
| L+5.75 | % | 6.81 | % | 2/28/2019 |
| 2/28/2024 |
| 60 | |
| 60 |
| | 60 |
| 0.0 | % |
Crownpeak Technology, Inc. (Revolver) (f) |
| L+5.75 | % | 6.81 | % | 2/28/2019 |
| 2/28/2024 |
| 167 | |
| — |
| | — |
| 0.0 | % |
Spectrum Science Communications, LLC |
| SF+6.25 | % | 7.91 | % | 1/25/2022 |
| 1/25/2027 |
| 1,000 | |
| 982 |
| | 996 |
| 0.4 | % |
Spectrum Science Communications, LLC (Revolver) (f) |
| SF+6.25 | % | 7.91 | % | 1/25/2022 |
| 1/25/2027 |
| 200 | |
| — |
| | — |
| 0.0 | % |
|
| | | | | | | | | 31,231 | |
| 27,053 |
| | 27,047 |
| 11.7 | % |
Retail |
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| |
BLST Operating Company, LLC |
| L+8.50 | % | 1.00% Cash/ 9.00% PIK | (j) | 8/28/2020 |
| 8/28/2025 |
| 1,147 | |
| 967 |
| | 1,143 |
| 0.5 | % |
Forman Mills, Inc. |
| SF+9.50 | % | 9.14% Cash/ |
| 1/14/2020 |
| 12/30/2022 |
| 1,275 | |
| 1,275 |
| | 1,263 |
| 0.5 | % |
Forman Mills, Inc. |
| SF+9.50 | % | 9.14% Cash/ |
| 10/4/2016 |
| 12/30/2022 |
| 7,228 | |
| 7,217 |
| | 7,163 |
| 3.1 | % |
|
| | | | | | | | | 9,650 | |
| 9,459 |
| | 9,569 |
| 4.1 | % |
Services: Business | | | | | | | | | | | | | | | | | | | |
Aras Corporation |
| L+7.00 | % | 4.27% Cash/ 3.75% PIK |
| 4/13/2021 |
| 4/13/2027 |
| 2,115 |
| | 2,083 |
| | 2,142 |
| 0.9 | % |
Aras Corporation (Revolver) (f) |
| L+7.00 | % | 4.27% Cash/ |
| 4/13/2021 |
| 4/13/2027 |
| 150 |
| | — |
| | — |
| 0.0 | % |
Burroughs, Inc. |
| SF+7.50 | % | 8.65 | % | 12/22/2017 |
| 12/22/2023 |
| 5,351 |
| | 5,339 |
| | 5,303 |
| 2.3 | % |
Burroughs, Inc. (Revolver) (f) |
| SF+7.50 | % | 8.65 | % | 12/22/2017 |
| 12/22/2023 |
| 1,215 |
| | — |
| | — |
| 0.0 | % |
HS4 Acquisitionco, Inc. |
| L+6.75 | % | 9.00 | % | 7/9/2019 |
| 7/9/2025 |
| 9,950 |
| | 9,838 |
| | 9,910 |
| 4.3 | % |
HS4 Acquisitionco, Inc. (Revolver) (f) |
| L+6.75 | % | 9.00 | % | 7/9/2019 |
| 7/9/2025 |
| 817 |
| | 123 |
| | 122 |
| 0.1 | % |
RedZone Robotics, Inc. |
| L+6.75 | % | 8.42 | % | 6/1/2018 |
| 6/5/2023 |
| 208 |
| | 207 |
| | 208 |
| 0.1 | % |
RedZone Robotics, Inc. (Revolver) (f) |
| L+6.75 | % | 8.42 | % | 6/1/2018 |
| 6/5/2023 |
| 158 |
| | — |
| | — |
| 0.0 | % |
Relativity ODA LLC |
| L+7.50 | % | 9.15% PIK |
| 5/12/2021 |
| 5/12/2027 |
| 1,954 |
| | 1,914 |
| | 1,946 |
| 0.8 | % |
Relativity ODA LLC (Revolver) (f) |
| L+7.50 | % | 9.15% PIK |
| 5/12/2021 |
| 5/12/2027 |
| 180 |
| | — |
| | — |
| 0.0 | % |
Security Services Acquisition Sub Corp. |
| L+6.00 | % | 7.67 | % | 9/30/2021 |
| 9/30/2026 |
| 7,940 |
| | 7,858 |
| | 7,940 |
| 3.4 | % |
Security Services Acquisition Sub Corp. |
| L+6.00 | % | 7.67 | % | 2/15/2019 |
| 9/30/2026 |
| 3,396 |
| | 3,372 |
| | 3,396 |
| 1.5 | % |
Security Services Acquisition Sub Corp. |
| L+6.00 | % | 7.67 | % | 2/15/2019 |
| 9/30/2026 |
| 2,442 |
| | 2,442 |
| | 2,442 |
| 1.1 | % |
Security Services Acquisition Sub Corp. |
| L+6.00 | % | 7.67 | % | 2/15/2019 |
| 9/30/2026 |
| 2,146 |
| | 2,146 |
| | 2,146 |
| 0.9 | % |
Security Services Acquisition Sub Corp. |
| L+6.00 | % | 7.67 | % | 2/15/2019 |
| 9/30/2026 |
| 1,543 |
| | 1,543 |
| | 1,543 |
| 0.7 | % |
ServiceMax, Inc. (h) |
| L+7.00 | % | 8.00% PIK |
| 11/1/2021 |
| 11/1/2027 |
| 3,618 |
| | 3,555 |
| | 3,582 |
| 1.5 | % |
ServiceMax, Inc. (Revolver) (f) (h) |
| L+7.00 | % | 8.00% PIK |
| 11/1/2021 |
| 11/1/2027 |
| 350 |
| | — |
| | — |
| 0.0 | % |
VPS Holdings, LLC |
| L+8.00 | % | 8.67% Cash/ |
| 10/5/2018 |
| 10/4/2024 |
| 3,351 |
| | 3,322 |
| | 3,355 |
| 1.4 | % |
VPS Holdings, LLC |
| L+8.00 | % | 8.67% Cash/ |
| 10/5/2018 |
| 10/4/2024 |
| 2,740 |
| | 2,740 |
| | 2,743 |
| 1.2 | % |
VPS Holdings, LLC (Revolver) (f) |
| L+8.00 | % | 8.67% Cash/ |
| 10/5/2018 |
| 10/4/2024 |
| 1,002 |
| | 102 |
| | 102 |
| 0.0 | % |
|
| | | | | | | | | 50,626 |
| | 46,584 |
| | 46,880 |
| 20.2 | % |
Derivative Instruments
12
Foreign currency forward contracts
| Description | Notional Amount to be Purchased | Notional Amount to be Sold | Counterparty | Settlement Date | Unrealized Gain (Loss) | |||||||||||
| Foreign currency forward contract | 102 | £ | 83 | Bannockburn Global Forex, LLC | 10/4/2021 | $ | (10 | ) | ||||||||
| Foreign currency forward contract | 101 | £ | 82 | Bannockburn Global Forex, LLC | 1/3/2022 | (10 | ) | |||||||||
| Foreign currency forward contract | 97 | £ | 79 | Bannockburn Global Forex, LLC | 4/4/2022 | (9 | ) | |||||||||
| Foreign currency forward contract | 36 | £ | 29 | Bannockburn Global Forex, LLC | 5/6/2022 | (3 | ) | |||||||||
| Foreign currency forward contract | 113 | AUD | 145 | Bannockburn Global Forex, LLC | 10/19/2021 | 8 | ||||||||||
| Foreign currency forward contract | 105 | AUD | 136 | Bannockburn Global Forex, LLC | 11/16/2021 | 7 | ||||||||||
| Foreign currency forward contract | 115 | AUD | 148 | Bannockburn Global Forex, LLC | 12/16/2021 | 8 | ||||||||||
| Foreign currency forward contract | 121 | AUD | 156 | Bannockburn Global Forex, LLC | 1/19/2022 | 8 | ||||||||||
| Foreign currency forward contract | 105 | AUD | 136 | Bannockburn Global Forex, LLC | 2/16/2022 | 7 | ||||||||||
| Foreign currency forward contract | 102 | AUD | 132 | Bannockburn Global Forex, LLC | 3/16/2022 | 7 | ||||||||||
| Foreign currency forward contract | 113 | AUD | 146 | Bannockburn Global Forex, LLC | 4/19/2022 | 7 | ||||||||||
| Foreign currency forward contract | 107 | AUD | 138 | Bannockburn Global Forex, LLC | 5/17/2022 | 7 | ||||||||||
| Foreign currency forward contract | 119 | AUD | 153 | Bannockburn Global Forex, LLC | 6/17/2022 | 8 | ||||||||||
| Foreign currency forward contract | 107 | AUD | 138 | Bannockburn Global Forex, LLC | 7/18/2022 | 7 | ||||||||||
| Foreign currency forward contract | 108 | AUD | 140 | Bannockburn Global Forex, LLC | 8/16/2022 | 7 | ||||||||||
| Foreign currency forward contract | 118 | AUD | 153 | Bannockburn Global Forex, LLC | 9/16/2022 | 8 | ||||||||||
| Foreign currency forward contract | 117 | AUD | 152 | Bannockburn Global Forex, LLC | 10/19/2022 | 8 | ||||||||||
| Foreign currency forward contract | 105 | AUD | 136 | Bannockburn Global Forex, LLC | 11/16/2022 | 7 | ||||||||||
| Foreign currency forward contract | 109 | AUD | 142 | Bannockburn Global Forex, LLC | 12/16/2022 | 7 | ||||||||||
| Foreign currency forward contract | 118 | AUD | 153 | Bannockburn Global Forex, LLC | 1/18/2023 | 7 | ||||||||||
| Foreign currency forward contract | 108 | AUD | 140 | Bannockburn Global Forex, LLC | 2/16/2023 | 7 | ||||||||||
| Foreign currency forward contract | 102 | AUD | 132 | Bannockburn Global Forex, LLC | 3/16/2023 | 6 | ||||||||||
| Foreign currency forward contract | 123 | AUD | 160 | Bannockburn Global Forex, LLC | 4/20/2023 | 8 | ||||||||||
| Foreign currency forward contract | 93 | AUD | 121 | Bannockburn Global Forex, LLC | 5/16/2023 | 6 | ||||||||||
| Foreign currency forward contract | 121 | AUD | 157 | Bannockburn Global Forex, LLC | 6/19/2023 | 7 | ||||||||||
| Foreign currency forward contract | 107 | AUD | 138 | Bannockburn Global Forex, LLC | 7/18/2023 | 6 | ||||||||||
| Foreign currency forward contract | 113 | AUD | 146 | Bannockburn Global Forex, LLC | 8/16/2023 | 7 | ||||||||||
| Foreign currency forward contract | 113 | AUD | 146 | Bannockburn Global Forex, LLC | 9/18/2023 | 7 | ||||||||||
| Foreign currency forward contract | 114 | AUD | 148 | Bannockburn Global Forex, LLC | 10/18/2023 | 7 | ||||||||||
| Foreign currency forward contract | 107 | AUD | 140 | Bannockburn Global Forex, LLC | 11/16/2023 | 6 | ||||||||||
| Foreign currency forward contract | 109 | AUD | 142 | Bannockburn Global Forex, LLC | 12/18/2023 | 6 | ||||||||||
| Foreign currency forward contract | 115 | AUD | 150 | Bannockburn Global Forex, LLC | 1/17/2024 | 7 | ||||||||||
| Foreign currency forward contract | 110 | AUD | 143 | Bannockburn Global Forex, LLC | 2/16/2024 | 6 | ||||||||||
| Foreign currency forward contract | 11,827 | AUD | 15,410 | Bannockburn Global Forex, LLC | 3/18/2024 | 691 | ||||||||||
| $ | 863 | |||||||||||||||
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
SeptemberJune 30, 20212022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of | | |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) | | ||
Services: Consumer |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Express Wash Acquisition Company, LLC |
| L+6.50 | % | 7.50 | % | 12/28/2020 |
| 12/26/2025 |
| 3,187 |
| $ | 3,145 |
| $ | 3,186 |
| 1.4 | % |
Express Wash Acquisition Company, LLC |
| L+6.50 | % | 7.50 | % | 9/3/2021 |
| 12/26/2025 |
| 7,239 |
| | 7,136 |
| | 7,239 |
| 3.1 | % |
Express Wash Acquisition Company, LLC |
| L+6.50 | % | 7.50 | % | 9/3/2021 |
| 12/26/2025 |
| 3,483 |
| | 3,483 |
| | 3,483 |
| 1.5 | % |
Express Wash Acquisition Company, LLC (Delayed Draw) (f) (g) |
| L+6.50 | % | 7.52 | % | 9/3/2021 |
| 12/26/2025 |
| 2,370 |
| | 1,794 |
| | 1,794 |
| 0.8 | % |
Express Wash Acquisition Company, LLC (Revolver) (f) |
| L+6.50 | % | 7.50 | % | 12/28/2020 |
| 12/26/2025 |
| 750 |
| | 400 |
| | 400 |
| 0.2 | % |
IDIG Parent, LLC |
| L+6.00 | % | 7.00 | % | 12/15/2020 |
| 12/15/2026 |
| 5,489 |
| | 5,405 |
| | 5,454 |
| 2.3 | % |
IDIG Parent, LLC |
| L+6.00 | % | 7.00 | % | 12/15/2020 |
| 12/15/2026 |
| 913 |
| | 913 |
| | 907 |
| 0.4 | % |
IDIG Parent, LLC (Revolver) |
| L+6.00 | % | 7.02 | % | 12/15/2020 |
| 12/15/2026 |
| 429 |
| | 429 |
| | 426 |
| 0.2 | % |
Kar Wash Holdings, LLC |
| SF+6.00 | % | 7.00 | % | 2/28/2022 |
| 2/26/2027 |
| 1,600 |
| | 1,570 |
| | 1,600 |
| 0.7 | % |
Kar Wash Holdings, LLC (Delayed Draw) (f) (g) |
| SF+6.00 | % | 7.72 | % | 2/28/2022 |
| 2/26/2027 |
| 1,143 |
| | 1,067 |
| | 1,067 |
| 0.5 | % |
Kar Wash Holdings, LLC (Revolver) (f) |
| SF+6.00 | % | 7.72 | % | 2/28/2022 |
| 2/26/2027 |
| 381 |
| | — |
| | — |
| 0.0 | % |
Mammoth Holdings, LLC |
| SF+6.00 | % | 7.00 | % | 10/16/2018 |
| 10/16/2023 |
| 1,930 |
| | 1,918 |
| | 1,930 |
| 0.8 | % |
Mammoth Holdings, LLC |
| SF+6.00 | % | 7.00 | % | 10/16/2018 |
| 10/16/2023 |
| 4,052 |
| | 4,052 |
| | 4,052 |
| 1.7 | % |
Mammoth Holdings, LLC |
| SF+6.00 | % | 7.00 | % | 3/12/2021 |
| 10/16/2023 |
| 6,324 |
| | 6,324 |
| | 6,334 |
| 2.7 | % |
Mammoth Holdings, LLC |
| SF+6.00 | % | 7.00 | % | 6/15/2021 |
| 10/16/2023 |
| 1,641 |
| | 1,641 |
| | 1,643 |
| 0.7 | % |
Mammoth Holdings, LLC (Revolver) (f) |
| SF+6.00 | % | 7.00 | % | 10/16/2018 |
| 10/16/2023 |
| 657 |
| | — |
| | — |
| 0.0 | % |
|
| | | | | | | | | 41,588 |
| | 39,277 |
| | 39,515 |
| 17.0 | % |
Telecommunications |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
American Broadband and Telecommunications Company LLC (Delayed Draw) (f) (g) |
| P+10.00 | % | 14.00 | % | 6/10/2022 |
| 6/10/2025 |
| 2,000 |
| | 1,793 |
| | 1,797 |
| 0.8 | % |
American Broadband and Telecommunications Company LLC (Revolver) (f) |
| P+10.00 | % | 14.00 | % | 6/10/2022 |
| 6/10/2025 |
| 500 |
| | 120 |
| | 120 |
| 0.1 | % |
Calabrio, Inc. |
| L+7.00 | % | 9.25 | % | 4/16/2021 |
| 4/16/2027 |
| 3,400 |
| | 3,329 |
| | 3,387 |
| 1.5 | % |
Calabrio, Inc. (Revolver) (f) |
| L+7.00 | % | 9.25 | % | 4/16/2021 |
| 4/16/2027 |
| 409 |
| | — |
| | — |
| 0.0 | % |
VHT Acquisitions, LLC |
| L+7.00 | % | 8.00% PIK |
| 12/21/2021 |
| 12/21/2026 |
| 1,534 |
| | 1,507 |
| | 1,527 |
| 0.6 | % |
VHT Acquisitions, LLC (Delayed Draw) (f) (g) |
| L+7.00 | % | 8.00% PIK |
| 12/21/2021 |
| 12/21/2026 |
| 120 |
| | — |
| | — |
| 0.0 | % |
VHT Acquisitions, LLC (Revolver) (f) |
| L+7.00 | % | 8.00% PIK |
| 12/21/2021 |
| 12/21/2026 |
| 43 |
| | — |
| | — |
| 0.0 | % |
|
| | | | | | | | | 8,006 |
| | 6,749 |
| | 6,831 |
| 3.0 | % |
Wholesale |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Nearly Natural, Inc. |
| L+11.50 | % | 9.75% Cash/ |
| 12/15/2017 |
| 12/15/2022 |
| 6,647 |
| | 6,634 |
| | 6,226 |
| 2.7 | % |
Nearly Natural, Inc. |
| L+11.50 | % | 9.75% Cash/ |
| 2/16/2021 |
| 12/15/2022 |
| 3,122 |
| | 3,107 |
| | 2,924 |
| 1.2 | % |
Nearly Natural, Inc. |
| L+11.50 | % | 9.75% Cash/ |
| 9/22/2020 |
| 12/15/2022 |
| 1,719 |
| | 1,712 |
| | 1,609 |
| 0.7 | % |
Nearly Natural, Inc. |
| L+11.50 | % | 9.75% Cash/ |
| 8/28/2019 |
| 12/15/2022 |
| 1,873 |
| | 1,873 |
| | 1,754 |
| 0.8 | % |
Nearly Natural, Inc. (Revolver) |
| L+11.50 | % | 9.75% Cash/ |
| 12/15/2017 |
| 12/15/2022 |
| 2,480 |
| | 2,480 |
| | 2,322 |
| 1.0 | % |
|
| | | | | | | | | 15,841 |
| | 15,806 |
| | 14,835 |
| 6.4 | % |
Total Non-Controlled/Non-Affiliate Senior Secured Loans |
| | | | | | | | | 388,507 |
| | 341,802 |
| | 341,805 |
| 147.3 | % |
| | | | | | | | | | | | | | | | | | | |
Unitranche Secured Loans (p) |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Aerospace & Defense |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Cassavant Holdings, LLC |
| L+6.50 | % | 7.56 | % | 9/8/2021 |
| 9/8/2026 |
| 7,940 |
| | 7,805 |
| | 7,873 |
| 3.4 | % |
|
| | | | | | | | | 7,940 |
| | 7,805 |
| | 7,873 |
| 3.4 | % |
12
13
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
December 31, 2020(unaudited)
June 30, 2022
(in thousands, except for shares and units)
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Non-Controlled/Non-Affiliate Company Investments | ||||||||||||||||||||||||
| Senior Secured Loans | ||||||||||||||||||||||||
| Automotive | ||||||||||||||||||||||||
| Hastings Manufacturing Company | L+8.25% | 9.25 | % | 4/24/2018 | 4/24/2023 | 2,820 | $ | 2,790 | $ | 2,829 | 1.2 | % | ||||||||||||
| Magneto & Diesel Acquisition, Inc. | L+6.05% | 7.10 | % | 12/18/2018 | 12/18/2023 | 4,876 | 4,820 | 4,876 | 2.1 | % | ||||||||||||||
| Magneto & Diesel Acquisition, Inc. | L+6.05% | 7.10 | % | 7/6/2020 | 12/18/2023 | 1,918 | 1,885 | 1,932 | 0.8 | % | ||||||||||||||
| Magneto & Diesel Acquisition, Inc. (Revolver) (f) | L+6.05% | 7.10 | % | 12/18/2018 | 12/18/2023 | 500 | — | — | 0.0 | % | ||||||||||||||
| 10,114 | 9,495 | 9,637 | 4.1 | % | ||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| 777 SPV I, LLC (g) | L+8.50% | 10.25 | % | 4/15/2019 | 4/14/2023 | 4,665 | 4,628 | 4,760 | 2.0 | % | ||||||||||||||
| J2 BWA Funding, LLC (Delayed Draw) (f) (g) (h) | n/a | 10.00 | % | 12/24/2020 | 12/24/2026 | 2,750 | — | — | 0.0 | % | ||||||||||||||
| Liftforward SPV II, LLC (g) | L+10.75% | 11.25 | % | 11/10/2016 | 6/30/2021 | 2,057 | 2,057 | 1,929 | 0.8 | % | ||||||||||||||
| NCBP Property, LLC (g) | L+9.50% | 10.50 | % | 12/18/2020 | 12/16/2022 | 1,950 | 1,931 | 1,931 | 0.8 | % | ||||||||||||||
| US Claims Litigation Funding, LLC (Revolver) (f) (g) | L+8.75% | 9.75 | % | 11/30/2020 | 11/29/2024 | 1,500 | 850 | 850 | 0.4 | % | ||||||||||||||
| 12,922 | 9,466 | 9,470 | 4.0 | % | ||||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||||||
| LX/JT Intermediate Holdings, Inc. (j) | L+6.00% | 7.50 | % | 3/11/2020 | 3/11/2025 | 9,732 | 9,564 | 9,567 | 4.1 | % | ||||||||||||||
| LX/JT Intermediate Holdings, Inc. (Revolver) (f) | L+6.00% | 7.50 | % | 3/11/2020 | 3/11/2025 | 833 | — | — | 0.0 | % | ||||||||||||||
| Toojay’s Management, LLC (k) | n/a | n/a | (l) | 10/26/2018 | 10/26/2022 | 1,448 | 1,407 | — | 0.0 | % | ||||||||||||||
| Toojay’s Management, LLC (k) | n/a | n/a | (l) | 10/26/2018 | 10/26/2022 | 199 | 199 | — | 0.0 | % | ||||||||||||||
| Toojay’s Management, LLC (Revolver) (k) | n/a | n/a | (l) | 10/26/2018 | 10/26/2022 | 66 | 66 | — | 0.0 | % | ||||||||||||||
| 12,278 | 11,236 | 9,567 | 4.1 | % | ||||||||||||||||||||
| Capital Equipment | ||||||||||||||||||||||||
| MCP Shaw Acquisitionco, LLC (j) | L+6.50% | 7.50 | % | 2/28/2020 | 11/28/2025 | 9,924 | 9,752 | 9,721 | 4.2 | % | ||||||||||||||
| MCP Shaw Acquisitionco, LLC (Revolver) (f) | L+6.50% | 7.50 | % | 2/28/2020 | 11/28/2025 | 1,784 | — | — | 0.0 | % | ||||||||||||||
| 11,708 | 9,752 | 9,721 | 4.2 | % | ||||||||||||||||||||
| Chemicals, Plastics & Rubber | ||||||||||||||||||||||||
| Midwest Composite Technologies, LLC (j) | L+6.75% | 7.75 | % | 12/2/2019 | 8/31/2023 | 14,925 | 14,701 | 14,926 | 6.4 | % | ||||||||||||||
| Midwest Composite Technologies, LLC | L+6.75% | 7.75 | % | 8/31/2018 | 8/31/2023 | 887 | 876 | 887 | 0.4 | % | ||||||||||||||
| Midwest Composite Technologies, LLC (Delayed Draw) (f) (h) | L+6.75% | 7.75 | % | 8/31/2018 | 8/31/2023 | 509 | 179 | 179 | 0.1 | % | ||||||||||||||
| Midwest Composite Technologies, LLC (Revolver) (f) | L+6.75% | 7.75 | % | 8/31/2018 | 8/31/2023 | 90 | — | — | 0.0 | % | ||||||||||||||
| Valudor Products, LLC | L+7.50% | 7.00% Cash/ 1.50% PIK | 6/18/2018 | 6/19/2023 | 1,561 | 1,543 | 1,702 | 0.7 | % | |||||||||||||||
| Valudor Products, LLC (m) | L+7.50% | 8.50% PIK | 6/18/2018 | 6/19/2023 | 217 | 214 | — | 0.0 | % | |||||||||||||||
| Valudor Products, LLC (Revolver) (f) | L+9.50% | 10.50 | % | 6/18/2018 | 6/19/2023 | 818 | 549 | 521 | 0.2 | % | ||||||||||||||
| 19,007 | 18,062 | 18,215 | 7.8 | % | ||||||||||||||||||||
| Construction & Building | ||||||||||||||||||||||||
| Cali Bamboo, LLC | L+9.50% | 8.00% Cash/ 2.50% PIK | 7/10/2015 | 3/31/2022 | 6,859 | 6,857 | 6,859 | 2.9 | % | |||||||||||||||
| Cali Bamboo, LLC (Revolver) (f) | L+9.50% | 8.00% Cash/ 2.50% PIK | 7/10/2015 | 3/31/2022 | 2,165 | — | — | 0.0 | % | |||||||||||||||
| Dude Solutions Holdings, Inc. | L+7.50% | 8.50 | % | 6/14/2019 | 6/13/2025 | 9,975 | 9,794 | 9,950 | 4.3 | % | ||||||||||||||
| Dude Solutions Holdings, Inc. (Revolver) (f) | L+7.50% | 8.50 | % | 6/14/2019 | 6/13/2025 | 1,304 | — | — | 0.0 | % | ||||||||||||||
| 20,303 | 16,651 | 16,809 | 7.2 | % | ||||||||||||||||||||
| Consumer Goods: Durable | ||||||||||||||||||||||||
| Franchise Group Intermediate Holdco, LLC | L+8.00% | 9.50 | % | 2/24/2020 | 2/14/2025 | 3,425 | 3,366 | 3,382 | 1.4 | % | ||||||||||||||
| Nova Wildcat Amerock, LLC | L+5.25% | 6.25 | % | 10/12/2018 | 10/12/2023 | 9,009 | 8,897 | 9,009 | 3.9 | % | ||||||||||||||
| Nova Wildcat Amerock, LLC (Revolver) (f) | L+5.25% | 6.25 | % | 10/12/2018 | 10/12/2023 | 931 | — | — | 0.0 | % | ||||||||||||||
| Parterre Flooring & Surface Systems, LLC (j) | L+9.00% | 10.00 | %(l) | 8/22/2017 | 8/22/2022 | 7,613 | 7,533 | 2,351 | 1.0 | % | ||||||||||||||
| Parterre Flooring & Surface Systems, LLC (Revolver) | L+9.00% | 10.00 | %(l) | 8/22/2017 | 8/22/2022 | 696 | 696 | 215 | 0.1 | % | ||||||||||||||
| 21,674 | 20,492 | 14,957 | 6.4 | % | ||||||||||||||||||||
| Consumer Goods: Non-Durable | ||||||||||||||||||||||||
| Thrasio, LLC | L+7.00% | 8.00 | % | 12/18/2020 | 12/18/2026 | 1,500 | 1,463 | 1,463 | 0.6 | % | ||||||||||||||
| Thrasio, LLC (Delayed Draw) (f) (h) | L+7.00% | 8.00 | % | 12/18/2020 | 12/18/2026 | 990 | — | — | 0.0 | % | ||||||||||||||
| 2,490 | 1,463 | 1,463 | 0.6 | % | ||||||||||||||||||||
| Environmental Industries | ||||||||||||||||||||||||
| Quest Resource Management Group, LLC | L+8.50% | 9.75 | % | 10/19/2020 | 10/20/2025 | 1,000 | 933 | 979 | 0.4 | % | ||||||||||||||
| Quest Resource Management Group, LLC (Delayed Draw) (f) (h) | L+8.50% | 9.75 | % | 10/19/2020 | 10/20/2025 | 1,087 | — | — | 0.0 | % | ||||||||||||||
| StormTrap, LLC | L+5.50% | 6.50 | % | 12/10/2018 | 12/8/2023 | 7,840 | 7,751 | 7,840 | 3.4 | % | ||||||||||||||
| StormTrap, LLC (Revolver) (f) | L+5.50% | 6.50 | % | 12/10/2018 | 12/8/2023 | 432 | — | — | 0.0 | % | ||||||||||||||
| Synergy Environmental Corporation (j) | L+6.00% | 7.00 | % | 4/29/2016 | 9/29/2023 | 2,885 | 2,874 | 2,888 | 1.2 | % | ||||||||||||||
| Synergy Environmental Corporation (j) | L+6.00% | 7.00 | % | 4/29/2016 | 9/29/2023 | 482 | 481 | 483 | 0.2 | % | ||||||||||||||
| Synergy Environmental Corporation | L+6.00% | 7.00 | % | 4/29/2016 | 9/29/2023 | 823 | 823 | 824 | 0.4 | % | ||||||||||||||
| Synergy Environmental Corporation (Revolver) (f) | L+6.00% | 7.00 | % | 4/29/2016 | 9/29/2023 | 671 | 67 | 67 | 0.0 | % | ||||||||||||||
| 15,220 | 12,929 | 13,081 | 5.6 | % | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of | | |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) | | ||
Consumer Goods: Non-Durable |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Vinci Brands LLC |
| n/a |
| 2.00% PIK | (j) | 7/6/2018 |
| 2/6/2024 |
| 7,026 |
| $ | 7,026 |
| $ | — |
| 0.0 | % |
Vinci Brands LLC |
| n/a |
| 2.00% PIK | (j) | 3/9/2018 |
| 2/6/2024 |
| 3,065 |
| | 3,065 |
| | — |
| 0.0 | % |
Vinci Brands LLC |
| n/a |
| 2.00% PIK | (j) | 12/26/2014 |
| 2/6/2024 |
| 13,552 |
| | 13,528 |
| | — |
| 0.0 | % |
Vinci Brands LLC |
| n/a |
| 2.00% PIK | (j) | 12/26/2014 |
| 2/6/2024 |
| 1,149 |
| | 1,149 |
| | — |
| 0.0 | % |
|
| | | | | | | | | 24,792 |
| | 24,768 |
| | — |
| 0.0 | % |
Healthcare & Pharmaceuticals |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Priority Ambulance, LLC |
| L+6.50 | % | 8.75 | % | 7/18/2018 |
| 8/25/2022 |
| 10,015 |
| | 10,015 |
| | 10,010 |
| 4.3 | % |
Priority Ambulance, LLC |
| L+6.50 | % | 8.75 | % | 4/12/2017 |
| 8/25/2022 |
| 1,253 |
| | 1,253 |
| | 1,253 |
| 0.6 | % |
Priority Ambulance, LLC |
| L+6.50 | % | 8.75 | % | 12/13/2018 |
| 8/25/2022 |
| 655 |
| | 655 |
| | 654 |
| 0.3 | % |
Priority Ambulance, LLC |
| L+6.50 | % | 8.75 | % | 10/22/2020 |
| 8/25/2022 |
| 990 |
| | 990 |
| | 989 |
| 0.4 | % |
|
| | | | | | | | | 12,913 |
| | 12,913 |
| | 12,906 |
| 5.6 | % |
High Tech Industries |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
WillowTree, LLC |
| L+5.00 | % | 6.67 | % | 10/9/2018 |
| 10/9/2023 |
| 7,539 |
| | 7,501 |
| | 7,535 |
| 3.2 | % |
|
| | | | | | | | | 7,539 |
| | 7,501 |
| | 7,535 |
| 3.2 | % |
Services: Business |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
ASG II, LLC |
| SF+6.50 | % | 8.70 | % | 5/25/2022 |
| 5/25/2028 |
| 1,900 |
| | 1,862 |
| | 1,862 |
| 0.8 | % |
ASG II, LLC (Delayed Draw) (f) (g) |
| SF+6.50 | % | 8.70 | % | 5/25/2022 |
| 5/25/2028 |
| 285 |
| | — |
| | — |
| 0.0 | % |
Onit, Inc. |
| SF+7.25 | % | 9.46 | % | 12/20/2021 |
| 5/2/2025 |
| 1,680 |
| | 1,653 |
| | 1,668 |
| 0.7 | % |
|
| | | | | | | | | 3,865 |
| | 3,515 |
| | 3,530 |
| 1.5 | % |
Telecommunications |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
VB E1, LLC |
| L+7.65 | % | 9.90 | % | 11/18/2020 |
| 11/18/2026 |
| 2,250 |
| | 2,250 |
| | 2,270 |
| 1.0 | % |
|
| | | | | | | | | 2,250 |
| | 2,250 |
| | 2,270 |
| 1.0 | % |
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans |
| | | | | | | | | 59,299 |
| | 58,752 |
| | 34,114 |
| 14.7 | % |
| | | | | | | | | | | | | | | | | | | |
Junior Secured Loans |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Banking |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
MoneyLion, Inc. (h) |
| SF+8.50 | % | 10.82 | % | 3/25/2022 |
| 3/24/2026 |
| 5,250 |
| | 5,199 |
| | 5,178 |
| 2.2 | % |
MoneyLion, Inc. (h) |
| n/a |
| 12.00 | % | 8/27/2021 |
| 5/1/2023 |
| 1,500 |
| | 1,490 |
| | 1,498 |
| 0.7 | % |
MoneyLion, Inc. (Delayed Draw) (f) (g) (h) |
| SF+8.50 | % | 10.82 | % | 3/25/2022 |
| 3/24/2026 |
| 1,500 |
| | — |
| | — |
| 0.0 | % |
|
| | | | | | | | | 8,250 |
| | 6,689 |
| | 6,676 |
| 2.9 | % |
FIRE: Real Estate |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Florida East Coast Industries, LLC (h) |
| n/a |
| 16.00% PIK |
| 8/9/2021 |
| 6/28/2024 |
| 1,643 |
| | 1,612 |
| | 1,602 |
| 0.7 | % |
Witkoff/Monroe 700 JV LLC (Delayed Draw) (f) (g) (h) |
| n/a |
| 8.00% Cash/ |
| 7/2/2021 |
| 7/2/2026 |
| 5,672 |
| | 5,037 |
| | 5,037 |
| 2.2 | % |
|
| | | | | | | | | 7,315 |
| | 6,649 |
| | 6,639 |
| 2.9 | % |
Services: Consumer |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
| |
Education Corporation of America |
| L+11.00 | % | 7.75% Cash/ | (j) | 9/3/2015 |
| n/a | (o) | 833 |
| | 831 |
| | 580 |
| 0.2 | % |
|
| | | | | | | | | 833 |
| | 831 |
| | 580 |
| 0.2 | % |
Total Non-Controlled/Non-Affiliate Junior Secured Loans |
| | | | | | | | | 16,398 |
| | 14,169 |
| | 13,895 |
| 6.0 | % |
| | | | | | | | | | | | | | | | | | | |
Equity Securities (q) (r) |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Automotive |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Born To Run, LLC (269,438 Class A units) |
| — |
| — | (s) | 4/1/2021 |
| — |
| — |
| | 269 |
| | 342 |
| 0.2 | % |
Lifted Trucks Holdings, LLC (111,111 Class A units) (t) |
| — |
| — | (s) | 8/2/2021 |
| — |
| — |
| | 111 |
| | 91 |
| 0.0 | % |
|
| | | | | | | | | | | | 380 |
| | 433 |
| 0.2 | % |
14
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS –- (continued)
December 31, 2020(unaudited)
June 30, 2022
(in thousands, except for shares and units)
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| American Optics Holdco, Inc. (g) (n) | L+6.50% | 7.50 | % | 9/13/2017 | 9/13/2022 | 2,165 | $ | 2,148 | $ | 2,165 | 0.9 | % | ||||||||||||
| American Optics Holdco, Inc. (g) (n) | L+6.50% | 7.50 | % | 9/13/2017 | 9/13/2022 | 1,637 | 1,622 | 1,637 | 0.7 | % | ||||||||||||||
| American Optics Holdco, Inc. (Revolver) (f) (g) (n) | L+6.50% | 7.50 | % | 9/13/2017 | 9/13/2022 | 220 | — | — | 0.0 | % | ||||||||||||||
| American Optics Holdco, Inc. (Revolver) (f) (g) (n) | L+6.50% | 7.50 | % | 9/13/2017 | 9/13/2022 | 440 | — | — | 0.0 | % | ||||||||||||||
| Apotheco, LLC | L+8.50% | 6.50% Cash / 3.00% PIK | 4/8/2019 | 4/8/2024 | 3,541 | 3,491 | 3,315 | 1.4 | % | |||||||||||||||
| Apotheco, LLC (Revolver) | L+8.50% | 6.50% Cash / 3.00% PIK | 4/8/2019 | 4/8/2024 | 927 | 927 | 868 | 0.4 | % | |||||||||||||||
| Rockdale Blackhawk, LLC | n/a | n/a | (o) | 3/31/2015 | n/a | (i) | — | — | 1,592 | 0.7 | % | |||||||||||||
| Seran BioScience, LLC | L+7.25% | 8.25 | % | 12/31/2020 | 12/31/2025 | 2,500 | 2,450 | 2,450 | 1.0 | % | ||||||||||||||
| Seran BioScience, LLC (Revolver) (f) | L+7.25% | 8.25 | % | 12/31/2020 | 12/31/2025 | 444 | — | — | 0.0 | % | ||||||||||||||
| 11,874 | 10,638 | 12,027 | 5.1 | % | ||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| MarkLogic Corporation | L+8.00% | 9.00 | % | 10/20/2020 | 10/20/2025 | 3,500 | 3,415 | 3,544 | 1.5 | % | ||||||||||||||
| MarkLogic Corporation (Revolver) (f) | L+8.00% | 9.00 | % | 10/20/2020 | 10/20/2025 | 269 | — | — | 0.0 | % | ||||||||||||||
| Mindbody, Inc. | L+8.50% | 8.00% Cash / 1.50% PIK | 2/15/2019 | 2/14/2025 | 6,389 | 6,297 | 6,143 | 2.6 | % | |||||||||||||||
| Mindbody, Inc. (Revolver) (f) | L+8.00% | 9.00 | % | 2/15/2019 | 2/14/2025 | 667 | — | — | 0.0 | % | ||||||||||||||
| Newforma, Inc. (j) | L+5.00% | 6.00 | % | 6/30/2017 | 6/30/2022 | 11,899 | 11,836 | 11,899 | 5.1 | % | ||||||||||||||
| Newforma, Inc. (Revolver) (f) | L+5.00% | 6.00 | % | 6/30/2017 | 6/30/2022 | 1,250 | — | — | 0.0 | % | ||||||||||||||
| Planful, Inc. (fka Host Analytics, Inc.) | L+6.00% | 7.00 | % | 12/28/2018 | 12/28/2023 | 9,500 | 9,375 | 9,443 | 4.0 | % | ||||||||||||||
| Planful, Inc. (fka Host Analytics, Inc.) (Revolver) (f) | L+6.00% | 7.00 | % | 12/28/2018 | 12/28/2023 | 442 | 88 | 88 | 0.0 | % | ||||||||||||||
| RPL Bidco Limited (g) (n) (p) | L+7.50% | 8.00 | % | 11/9/2017 | 11/9/2023 | 14,429 | 13,867 | 14,429 | 6.2 | % | ||||||||||||||
| RPL Bidco Limited (g) (n) (p) | L+7.50% | 8.00 | % | 5/22/2018 | 11/9/2023 | 1,777 | 1,639 | 1,777 | 0.8 | % | ||||||||||||||
| RPL Bidco Limited (Revolver) (f) (g) (n) (p) | L+7.50% | 8.00 | % | 11/9/2017 | 11/9/2023 | 547 | — | — | 0.0 | % | ||||||||||||||
| 50,669 | 46,517 | 47,323 | 20.2 | % | ||||||||||||||||||||
| Hotels, Gaming & Leisure | ||||||||||||||||||||||||
| Equine Network, LLC | L+8.00% | 9.00 | % | 12/31/2020 | 12/31/2025 | 1,750 | 1,711 | 1,711 | 0.7 | % | ||||||||||||||
| Equine Network, LLC (Delayed Draw) (f) (h) | L+8.00% | 9.00 | % | 12/31/2020 | 12/31/2025 | 427 | — | — | 0.0 | % | ||||||||||||||
| Equine Network, LLC (Revolver) (f) | L+8.00% | 9.00 | % | 12/31/2020 | 12/31/2025 | 171 | — | — | 0.0 | % | ||||||||||||||
| 2,348 | 1,711 | 1,711 | 0.7 | % | ||||||||||||||||||||
| Media: Advertising, Printing & Publishing | ||||||||||||||||||||||||
| AdTheorent Holding Company, LLC | L+8.50% | 9.00 | % | 12/22/2016 | 12/22/2021 | 2,700 | 2,687 | 2,683 | 1.2 | % | ||||||||||||||
| Destination Media, Inc. (j) | L+5.50% | 6.50 | % | 4/7/2017 | 4/7/2022 | 4,324 | 4,304 | 4,315 | 1.8 | % | ||||||||||||||
| Destination Media, Inc. (Revolver) | L+5.50% | 6.50 | % | 4/7/2017 | 4/7/2022 | 542 | 542 | 542 | 0.2 | % | ||||||||||||||
| North Haven USHC Acquisition, Inc. | L+6.50% | 7.50 | % | 10/30/2020 | 10/30/2025 | 2,500 | 2,451 | 2,525 | 1.1 | % | ||||||||||||||
| North Haven USHC Acquisition, Inc. (Revolver) (f) | L+6.50% | 7.50 | % | 10/30/2020 | 10/30/2025 | 240 | — | — | 0.0 | % | ||||||||||||||
| Relevate Health Group, LLC | L+6.25% | 7.25 | % | 11/20/2020 | 11/20/2025 | 1,500 | 1,470 | 1,506 | 0.6 | % | ||||||||||||||
| Relevate Health Group, LLC (Delayed Draw) (f) (h) | L+6.25% | 7.25 | % | 11/20/2020 | 11/20/2025 | 789 | 671 | 674 | 0.3 | % | ||||||||||||||
| Relevate Health Group, LLC (Revolver) (f) | L+6.25% | 7.25 | % | 11/20/2020 | 11/20/2025 | 316 | — | — | 0.0 | % | ||||||||||||||
| Stratus Unlimited, LLC (fka MC Sign Lessor Corp.) | L+7.00% | 8.00 | % | 12/22/2017 | 8/30/2024 | 15,563 | 15,498 | 15,465 | 6.6 | % | ||||||||||||||
| Stratus Unlimited, LLC (fka MC Sign Lessor Corp.) (Revolver) (f) | L+7.00% | 8.00 | % | 12/22/2017 | 8/30/2024 | 3,490 | — | — | 0.0 | % | ||||||||||||||
| XanEdu Publishing, Inc. | L+6.50% | 7.50 | % | 1/28/2020 | 1/28/2025 | 1,886 | 1,854 | 1,890 | 0.8 | % | ||||||||||||||
| XanEdu Publishing, Inc. (Revolver) (f) | L+6.50% | 7.50 | % | 1/28/2020 | 1/28/2025 | 495 | 197 | 197 | 0.1 | % | ||||||||||||||
| 34,345 | 29,674 | 29,797 | 12.7 | % | ||||||||||||||||||||
| Media: Broadcasting & Subscription | ||||||||||||||||||||||||
| Vice Group Holding, Inc. | L+12.00% | 5.50% Cash/ 8.00% PIK | 5/2/2019 | 11/2/2022 | 1,355 | 1,348 | 1,372 | 0.6 | % | |||||||||||||||
| Vice Group Holding, Inc. | L+12.00% | 5.50% Cash/ 8.00% PIK | 11/4/2019 | 11/2/2022 | 260 | 257 | 263 | 0.1 | % | |||||||||||||||
| Vice Group Holding, Inc. | L+12.00% | 5.50% Cash/ 8.00% PIK | 5/2/2019 | 11/2/2022 | 425 | 425 | 430 | 0.2 | % | |||||||||||||||
| Vice Group Holding, Inc. | L+12.00% | 5.50% Cash/ 8.00% PIK | 5/2/2019 | 11/2/2022 | 160 | 160 | 162 | 0.1 | % | |||||||||||||||
| 2,200 | 2,190 | 2,227 | 1.0 | % | ||||||||||||||||||||
| Media: Diversified & Production | ||||||||||||||||||||||||
| Attom Intermediate Holdco, LLC | L+5.75% | 6.75 | % | 1/4/2019 | 1/4/2024 | 1,960 | 1,935 | 1,927 | 0.8 | % | ||||||||||||||
| Attom Intermediate Holdco, LLC | L+7.50% | 8.75 | % | 6/25/2020 | 1/4/2024 | 478 | 469 | 492 | 0.2 | % | ||||||||||||||
| Attom Intermediate Holdco, LLC (Revolver) (f) | L+5.75% | 6.75 | % | 1/4/2019 | 1/4/2024 | 320 | — | — | 0.0 | % | ||||||||||||||
| Crownpeak Technology, Inc. | L+6.25% | 7.25 | % | 2/28/2019 | 2/28/2024 | 4,000 | 3,946 | 3,962 | 1.7 | % | ||||||||||||||
| Crownpeak Technology, Inc. | L+6.25% | 7.25 | % | 2/28/2019 | 2/28/2024 | 60 | 60 | 59 | 0.0 | % | ||||||||||||||
| Crownpeak Technology, Inc. (Revolver) (f) | L+6.25% | 7.25 | % | 2/28/2019 | 2/28/2024 | 167 | — | — | 0.0 | % | ||||||||||||||
| 6,985 | 6,410 | 6,440 | 2.7 | % | ||||||||||||||||||||
| Retail | ||||||||||||||||||||||||
| BLST Operating Company, LLC (fka Bluestem Brands, Inc.) | L+8.50% | 1.00% Cash/ 9.00% PIK | (l) | 8/28/2020 | 8/28/2025 | 1,259 | 1,254 | 1,039 | 0.4 | % | ||||||||||||||
| Forman Mills, Inc. (j) | L+9.50% | 8.50% Cash/ 2.00% PIK | 1/14/2020 | 12/30/2022 | 1,308 | 1,308 | 1,292 | 0.5 | % | |||||||||||||||
| Forman Mills, Inc. (j) | L+9.50% | 8.50% Cash/ 2.00% PIK | 10/4/2016 | 12/30/2022 | 744 | 741 | 735 | 0.3 | % | |||||||||||||||
| Forman Mills, Inc. (j) | L+9.50% | 8.50% Cash/ 2.00% PIK | 10/4/2016 | 12/30/2022 | 7,459 | 7,429 | 6,944 | 3.0 | % | |||||||||||||||
| LuLu’s Fashion Lounge, LLC | L+9.50% | 8.00% Cash/ 2.50% PIK | 8/21/2017 | 8/29/2022 | 4,123 | 4,074 | 3,525 | 1.5 | % | |||||||||||||||
| The Worth Collection, Ltd. (j) | L+8.50% | 9.00 | %(l) | 9/29/2016 | 9/29/2021 | 10,587 | 10,248 | 120 | 0.1 | % | ||||||||||||||
| 25,480 | 25,054 | 13,655 | 5.8 | % | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of | | |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) | | ||
Banking |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
MV Receivables II, LLC (1,458 common units) (h) (t) |
| — |
| — | (s) | 7/29/2021 |
| — |
| — |
| $ | 600 |
| $ | 1,146 |
| 0.5 | % |
MV Receivables II, LLC (warrant to purchase up to 0.8% of the equity) (h) (t) |
| — |
| — | (s) | 7/28/2021 |
| 7/28/2031 |
| — |
| | 363 |
| | 1,034 |
| 0.5 | % |
|
| | | | | | | | | | | | 963 |
| | 2,180 |
| 1.0 | % |
Beverage, Food & Tobacco |
|
|
|
| |
|
|
|
|
|
| |
|
| ��� |
|
|
| |
California Pizza Kitchen, Inc. (78,699 common units) |
| — |
| — | (s) | 8/19/2016 |
| — |
| — |
| | 5,468 |
| | 2,479 |
| 1.1 | % |
|
| | | | | | | | | | | | 5,468 |
| | 2,479 |
| 1.1 | % |
Capital Equipment |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) (t) |
| — |
| — | (s) | 2/28/2020 |
| — |
| — |
| | 119 |
| | 155 |
| 0.1 | % |
|
| | | | | | | | | | | | 119 |
| | 155 |
| 0.1 | % |
Chemicals, Plastics & Rubber |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Valudor Products LLC (501,014 Class A-1 units) (t) |
| n/a |
| 10.00% PIK | | 6/18/2018 |
| — |
| — |
| | 501 |
| | 275 |
| 0.1 | % |
|
| | | | | | | | | | | | 501 |
| | 275 |
| 0.1 | % |
Consumer Goods: Durable |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Independence Buyer, Inc. (81 Class A units) |
| — |
| — | (s) | 8/3/2021 |
| — |
| — |
| | 81 |
| | 100 |
| 0.1 | % |
| | | | | | | | | | | | | 81 |
| | 100 |
| 0.1 | % |
Environmental Industries | | | | | | | | | | | | | | | | | | | |
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — | (s) | 10/19/2020 |
| 3/19/2028 |
| — |
| | 67 |
| | 123 |
| 0.1 | % |
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — | (s) | 10/19/2021 |
| 3/19/2028 |
| — |
| | — |
| | 86 |
| 0.0 | % |
|
| | | | | | | | | | | | 67 |
| | 209 |
| 0.1 | % |
FIRE: Finance |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
J2 BWA Funding LLC (0.7% profit sharing) (h) (t) |
| — |
| — | (s) | 12/24/2020 |
| — |
| — |
| | — |
| | — |
| 0.0 | % |
PKS Holdings, LLC (5,680 preferred units) (h) |
| n/a |
| 12.00% PIK | | 11/30/2017 |
| — |
| — |
| | 58 |
| | 313 |
| 0.2 | % |
PKS Holdings, LLC (5,714 preferred units) (h) |
| n/a |
| 12.00% PIK | | 11/30/2017 |
| — |
| — |
| | 9 |
| | 49 |
| 0.0 | % |
PKS Holdings, LLC (132 preferred units) (h) |
| n/a |
| 12.00% PIK | | 11/30/2017 |
| — |
| — |
| | 1 |
| | 7 |
| 0.0 | % |
PKS Holdings, LLC (916 preferred units) (h) |
| n/a |
| 12.00% PIK | | 11/30/2017 |
| — |
| — |
| | 9 |
| | 49 |
| 0.0 | % |
|
| | | | | | | | | | | | 77 |
| | 418 |
| 0.2 | % |
FIRE: Real Estate |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
Witkoff/Monroe 700 JV LLC (2,141 preferred units) (h) (t) |
| n/a |
| 8.00% Cash/ | | 7/2/2021 |
| — |
| — |
| | 2 |
| | 108 |
| 0.0 | % |
|
| | | | | | | | | | | | 2 |
| | 108 |
| 0.0 | % |
Healthcare & Pharmaceuticals |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
Dorado Acquisition, Inc. (178,891 Class A-1 units) |
| — |
| — | (s) | 6/30/2021 |
| — |
| — |
| | 179 |
| | 179 |
| 0.1 | % |
Dorado Acquisition, Inc. (178,891 Class A-2 units) |
| — |
| — | (s) | 6/30/2021 |
| — |
| — |
| | — |
| | 133 |
| 0.1 | % |
NationsBenefits, LLC (116,460 Series B units) (t) |
| n/a |
| 5.00% PIK | | 8/20/2021 |
| — |
| — |
| | 781 |
| | 934 |
| 0.4 | % |
NationsBenefits, LLC (106,667 shares of common units) (t) |
| — |
| — | (s) | 8/20/2021 |
| — |
| — |
| | 153 |
| | 326 |
| 0.1 | % |
Seran BioScience, LLC (33,333 common units) (t) |
| — |
| — | (s) | 12/31/2020 |
| — |
| — |
| | 334 |
| | 547 |
| 0.2 | % |
|
| | | | | | | | | | | | 1,447 |
| | 2,119 |
| 0.9 | % |
15
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS –- (continued)
December 31, 2020(unaudited)
June 30, 2022
(in thousands, except for shares and units)
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| Arcserve (USA), LLC | L+6.00% | 7.00 | % | 5/1/2019 | 5/1/2024 | 4,634 | $ | 4,567 | $ | 4,644 | 2.0 | % | ||||||||||||
| Atlas Sign Industries of FLA, LLC (j) | L+11.50% | 11.50% Cash/ 1.00% PIK | 5/14/2018 | 5/15/2023 | 3,563 | 3,368 | 3,324 | 1.4 | % | |||||||||||||||
| Burroughs, Inc. (j) | L+7.50% | 8.50 | % | 12/22/2017 | 12/22/2022 | 5,726 | 5,681 | 5,726 | 2.4 | % | ||||||||||||||
| Burroughs, Inc. (Revolver) (f) | L+7.50% | 8.50 | % | 12/22/2017 | 12/22/2022 | 1,220 | 170 | 170 | 0.1 | % | ||||||||||||||
| Certify, Inc. | L+5.75% | 6.75 | % | 2/28/2019 | 2/28/2024 | 9,000 | 8,907 | 9,000 | 3.8 | % | ||||||||||||||
| Certify, Inc. | L+5.75% | 6.75 | % | 2/28/2019 | 2/28/2024 | 1,227 | 1,227 | 1,227 | 0.5 | % | ||||||||||||||
| Certify, Inc. (Revolver) (f) | L+5.75% | 6.75 | % | 2/28/2019 | 2/28/2024 | 409 | 102 | 102 | 0.0 | % | ||||||||||||||
| HS4 Acquisitionco, Inc. | L+6.75% | 7.75 | % | 7/9/2019 | 7/9/2025 | 10,050 | 9,887 | 9,929 | 4.2 | % | ||||||||||||||
| HS4 Acquisitionco, Inc. (Revolver) (f) | L+6.75% | 7.75 | % | 7/9/2019 | 7/9/2025 | 817 | — | — | 0.0 | % | ||||||||||||||
| IT Global Holding, LLC | L+9.00% | 10.00 | % | 11/15/2018 | 11/10/2023 | 9,975 | 9,845 | 9,794 | 4.2 | % | ||||||||||||||
| IT Global Holding, LLC | L+9.00% | 10.00 | % | 7/19/2019 | 11/10/2023 | 3,719 | 3,661 | 3,651 | 1.6 | % | ||||||||||||||
| IT Global Holding, LLC (Revolver) | L+9.00% | 10.00 | % | 11/15/2018 | 11/10/2023 | 875 | 875 | 875 | 0.4 | % | ||||||||||||||
| Madison Logic, Inc. (j) | L+7.50% | 8.00 | % | 11/30/2016 | 11/30/2021 | 9,080 | 9,037 | 9,080 | 3.9 | % | ||||||||||||||
| Madison Logic, Inc. (Revolver) (f) | L+7.50% | 8.00 | % | 11/30/2016 | 11/30/2021 | 988 | — | — | 0.0 | % | ||||||||||||||
| RedZone Robotics, Inc. | L+7.25% | 7.75% Cash/ 0.50% PIK | 6/1/2018 | 6/5/2023 | 591 | 585 | 556 | 0.2 | % | |||||||||||||||
| RedZone Robotics, Inc. (Revolver) (f) | L+6.75% | 7.75 | % | 6/1/2018 | 6/5/2023 | 158 | — | — | 0.0 | % | ||||||||||||||
| Security Services Acquisition Sub Corp. (j) | L+6.00% | 7.00 | % | 2/15/2019 | 2/15/2024 | 3,439 | 3,394 | 3,442 | 1.5 | % | ||||||||||||||
| Security Services Acquisition Sub Corp. (j) | L+6.00% | 7.00 | % | 2/15/2019 | 2/15/2024 | 2,473 | 2,473 | 2,476 | 1.1 | % | ||||||||||||||
| Security Services Acquisition Sub Corp. (j) | L+6.00% | 7.00 | % | 2/15/2019 | 2/15/2024 | 2,180 | 2,180 | 2,182 | 0.9 | % | ||||||||||||||
| Security Services Acquisition Sub Corp. | L+6.00% | 7.00 | % | 2/15/2019 | 2/15/2024 | 1,563 | 1,563 | 1,564 | 0.7 | % | ||||||||||||||
| VPS Holdings, LLC | L+7.00% | 8.00 | % | 10/5/2018 | 10/4/2024 | 3,663 | 3,611 | 3,469 | 1.5 | % | ||||||||||||||
| VPS Holdings, LLC | L+7.00% | 8.00 | % | 10/5/2018 | 10/4/2024 | 2,989 | 2,989 | 2,831 | 1.2 | % | ||||||||||||||
| VPS Holdings, LLC (Revolver) (f) | L+7.00% | 8.00 | % | 10/5/2018 | 10/4/2024 | 1,000 | 100 | 95 | 0.0 | % | ||||||||||||||
| 79,339 | 74,222 | 74,137 | 31.6 | % | ||||||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| Express Wash Acquisition Company, LLC | L+6.50% | 7.50 | % | 12/28/2020 | 12/26/2025 | 2,500 | 2,456 | 2,456 | 1.0 | % | ||||||||||||||
| Express Wash Acquisition Company, LLC (Revolver) (f) | L+6.50% | 7.50 | % | 12/28/2020 | 12/26/2025 | 1,000 | — | — | 0.0 | % | ||||||||||||||
| IDIG Parent, LLC (q) | L+6.50% | 7.50 | % | 12/15/2020 | 12/15/2026 | 10,200 | 9,997 | 9,996 | 4.3 | % | ||||||||||||||
| IDIG Parent, LLC (Delayed Draw) (f) (h) | L+6.50% | 7.50 | % | 12/15/2020 | 12/15/2026 | 1,684 | — | — | 0.0 | % | ||||||||||||||
| IDIG Parent, LLC (Revolver) (f) | L+6.50% | 7.50 | % | 12/15/2020 | 12/15/2026 | 723 | — | — | 0.0 | % | ||||||||||||||
| Mammoth Holdings, LLC | L+6.00% | 7.00 | % | 10/16/2018 | 10/16/2023 | 1,960 | 1,936 | 1,949 | 0.8 | % | ||||||||||||||
| Mammoth Holdings, LLC | L+6.00% | 7.00 | % | 10/16/2018 | 10/16/2023 | 4,115 | 4,115 | 4,092 | 1.8 | % | ||||||||||||||
| Mammoth Holdings, LLC (Revolver) (f) | L+6.00% | 7.00 | % | 10/16/2018 | 10/16/2023 | 500 | — | — | 0.0 | % | ||||||||||||||
| 22,682 | 18,504 | 18,493 | 7.9 | % | ||||||||||||||||||||
| Wholesale | ||||||||||||||||||||||||
| Nearly Natural, Inc. (j) | L+6.75% | 7.75 | % | 12/15/2017 | 12/15/2022 | 6,685 | 6,625 | 6,650 | 2.9 | % | ||||||||||||||
| Nearly Natural, Inc. (j) | L+6.75% | 7.75 | % | 9/22/2020 | 12/15/2022 | 1,728 | 1,698 | 1,719 | 0.7 | % | ||||||||||||||
| Nearly Natural, Inc. (j) | L+6.75% | 7.75 | % | 8/28/2019 | 12/15/2022 | 1,882 | 1,882 | 1,872 | 0.8 | % | ||||||||||||||
| Nearly Natural, Inc. (Revolver) (f) | L+6.75% | 7.75 | % | 12/15/2017 | 12/15/2022 | 2,397 | 959 | 959 | 0.4 | % | ||||||||||||||
| 12,692 | 11,164 | 11,200 | 4.8 | % | ||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Senior Secured Loans | 374,330 | 335,630 | 319,930 | 136.5 | % | |||||||||||||||||||
| Unitranche Secured Loans (r) | ||||||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| Kudu Investment Holdings, LLC (g) | L+5.75% | 6.75 | % | 12/23/2019 | 12/23/2025 | 7,932 | 7,849 | 7,971 | 3.4 | % | ||||||||||||||
| Kudu Investment Holdings, LLC (Delayed Draw) (f) (g) (h) | L+5.75% | 6.75 | % | 12/23/2019 | 12/23/2025 | 2,357 | 448 | 451 | 0.2 | % | ||||||||||||||
| 10,289 | 8,297 | 8,422 | 3.6 | % | ||||||||||||||||||||
| Chemicals, Plastics & Rubber | ||||||||||||||||||||||||
| MFG Chemical, LLC (j) | L+6.00% | 6.50 | % | 6/23/2017 | 6/23/2022 | 9,232 | 9,184 | 8,627 | 3.7 | % | ||||||||||||||
| MFG Chemical, LLC | L+6.00% | 6.50 | % | 3/15/2018 | 6/23/2022 | 976 | 976 | 912 | 0.4 | % | ||||||||||||||
| 10,208 | 10,160 | 9,539 | 4.1 | % | ||||||||||||||||||||
| Consumer Goods: Durable | ||||||||||||||||||||||||
| RugsUSA, LLC | L+6.00% | 7.00 | % | 5/2/2018 | 4/28/2023 | 3,937 | 3,918 | 3,936 | 1.7 | % | ||||||||||||||
| 3,937 | 3,918 | 3,936 | 1.7 | % | ||||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| Priority Ambulance, LLC (s) | L+6.50% | 7.50 | % | 7/18/2018 | 4/12/2022 | 10,015 | 10,015 | 9,930 | 4.2 | % | ||||||||||||||
| Priority Ambulance, LLC (t) | L+6.50% | 7.50 | % | 4/12/2017 | 4/12/2022 | 1,253 | 1,242 | 1,243 | 0.5 | % | ||||||||||||||
| Priority Ambulance, LLC | L+6.50% | 7.50 | % | 12/13/2018 | 4/12/2022 | 672 | 672 | 666 | 0.3 | % | ||||||||||||||
| Priority Ambulance, LLC (Delayed Draw) (f) (h) | L+6.50% | 7.50 | % | 10/22/2020 | 4/12/2022 | 1,009 | — | — | 0.0 | % | ||||||||||||||
| 12,949 | 11,929 | 11,839 | 5.0 | % | ||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Energy Services Group, LLC | L+8.42% | 9.42 | % | 5/4/2017 | 5/4/2022 | 3,948 | 3,930 | 3,948 | 1.7 | % | ||||||||||||||
| Energy Services Group, LLC (g) (p) | L+8.42% | 9.42 | % | 5/4/2017 | 5/4/2022 | 4,861 | 4,699 | 4,861 | 2.0 | % | ||||||||||||||
| Energy Services Group, LLC | L+8.42% | 9.42 | % | 5/4/2017 | 5/4/2022 | 1,124 | 1,110 | 1,124 | 0.5 | % | ||||||||||||||
| WillowTree, LLC | L+5.50% | 6.50 | % | 10/9/2018 | 10/9/2023 | 7,840 | 7,755 | 7,707 | 3.3 | % | ||||||||||||||
| 17,773 | 17,494 | 17,640 | 7.5 | % | ||||||||||||||||||||
| Telecommunications | ||||||||||||||||||||||||
| VB E1, LLC (Delayed Draw) (f) (h) | L+8.50% | 9.00 | % | 11/18/2020 | 11/18/2026 | 2,250 | 1,100 | 1,100 | 0.5 | % | ||||||||||||||
| 2,250 | 1,100 | 1,100 | 0.5 | % | ||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Unitranche Secured Loans | 57,406 | 52,898 | 52,476 | 22.4 | % | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of |
| |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) | | ||
High Tech Industries |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
MarkLogic Corporation (290,239 Class A units) |
| — |
| — | (s) | 10/20/2020 |
| — |
| — |
| $ | — |
| $ | 323 |
| 0.1 | % |
Planful, Inc. (473,082 Class A units) |
| n/a |
| 8.00% PIK | | 12/28/2018 |
| — |
| — |
| | 473 |
| | 458 |
| 0.2 | % |
Recorded Future, Inc. (80,486 Class A units) (u) |
| — |
| — | (s) | 7/3/2019 |
| — |
| — |
| | 81 |
| | 217 |
| 0.1 | % |
|
| | | | | | | | | | | | 554 |
| | 998 |
| 0.4 | % |
Hotels, Gaming & Leisure |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Equine Network, LLC (108 Class A units) (t) |
| — |
| — | (s) | 12/31/2020 |
| — |
| — |
| | 111 |
| | 97 |
| 0.0 | % |
|
| | | | | | | | | | | | 111 |
| | 97 |
| 0.0 | % |
Media: Advertising, Printing & Publishing | | | | | | | | | | | | | | | | | | | |
AdTheorent Holding Company, Inc. (177,362 shares of common stock) (h) (v) |
| — |
| — | (s) | 12/22/2016 |
| — |
| — |
| | 114 |
| | 548 |
| 0.2 | % |
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) (h) (m) |
| — |
| — | (s) | 9/18/2015 |
| 9/18/2025 |
| — |
| | — |
| | 1,858 |
| 0.8 | % |
Relevate Health Group, LLC (40 preferred units) |
| n/a |
| 12.00% PIK | | 11/20/2020 |
| — |
| — |
| | 40 |
| | 22 |
| 0.0 | % |
Relevate Health Group, LLC (40 Class B common units) |
| — |
| — | (s) | 11/20/2020 |
| — |
| — |
| | — |
| | 3 |
| 0.0 | % |
Spherix Global Inc. (81 Class A units) |
| — |
| — | (s) | 12/22/2021 |
| — |
| — |
| | 81 |
| | 76 |
| 0.0 | % |
XanEdu Publishing, Inc. (49,479 Class A units) |
| n/a |
| 8.00% PIK | | 1/28/2020 |
| — |
| — |
| | 49 |
| | 141 |
| 0.1 | % |
|
| | | | | | | | | | | | 284 |
| | 2,648 |
| 1.1 | % |
Media: Diversified & Production |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
Attom Intermediate Holdco, LLC (297,197 Class A units) (t) |
| — |
| — | (s) | 1/4/2019 | | — |
| — |
| | 297 |
| | 449 |
| 0.2 | % |
Chess.com, LLC (2 Class A units) (t) |
| — |
| — | (s) | 12/31/2021 | | — |
| — |
| | 87 |
| | 81 |
| 0.0 | % |
|
| | | | | | | | | | | | 384 |
| | 530 |
| 0.2 | % |
Retail |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
BLST Operating Company, LLC (139,883 Class A units) (t) |
| — |
| — | (s) | 8/28/2020 | | — |
| — |
| | 712 |
| | 420 |
| 0.2 | % |
Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity) |
| — |
| — | (s) | 1/14/2020 | | 1/14/2029 |
| — |
| | — |
| | 614 |
| 0.3 | % |
Luxury Optical Holdings Co. (w) |
| n/a |
| n/a | (s) | 9/12/2014 | | — |
| — |
| | — |
| | 118 |
| 0.0 | % |
|
| | | | | | | | | | | | 712 |
| | 1,152 |
| 0.5 | % |
Services: Business |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
APCO Worldwide, Inc. (100 Class A voting common stock) |
| — |
| — | (s) | 11/1/2017 |
| — |
| — |
| | 395 |
| | 786 |
| 0.3 | % |
|
| | | | | | | | | | | | 395 |
| | 786 |
| 0.3 | % |
Services: Consumer |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
Education Corporation of America - Series G Preferred Stock (8,333 shares) |
| n/a |
| 12.00% PIK | (j) | 9/3/2015 |
| — |
| — |
| | 7,492 |
| | 2,295 |
| 1.0 | % |
Express Wash Acquisition Company, LLC (121,311 Class A units) (t) |
| n/a |
| 8.00% PIK | | 12/28/2020 |
| — |
| — |
| | 125 |
| | 192 |
| 0.1 | % |
IDIG Parent, LLC (245,958 shares of common stock) (t) (x) |
| — |
| — | (s) | 1/4/2021 |
| — |
| — |
| | 248 |
| | 349 |
| 0.1 | % |
Kar Wash Holdings, LLC (85,917 Class A units) |
| — |
| — | (s) | 2/28/2022 |
| — |
| — |
| | 86 |
| | 78 |
| 0.0 | % |
|
| | | | | | | | | | | | 7,951 |
| | 2,914 |
| 1.2 | % |
Telecommunications |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
American Broadband and Telecommunications Company LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — | (s) | 6/10/2022 |
| 6/10/2032 |
| — |
| | 42 |
| | 42 |
| 0.0 | % |
|
| | | | | | | | | | | | 42 |
| | 42 |
| 0.0 | % |
Wholesale |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
Nearly Natural, Inc. (152,174 Class A units) |
| — |
| — | (s) | 12/15/2017 |
| — |
| — |
| | 153 |
| | — |
| 0.0 | % |
Nearly Natural, Inc. (39,394 Class AA units) |
| — |
| — | (s) | 8/27/2021 |
| — |
| — |
| | 39 |
| | — |
| 0.0 | % |
|
| | | | | | | | | | | | 192 |
| | — |
| 0.0 | % |
Total Non-Controlled/Non-Affiliate Equity Securities |
| | | | | | |
|
|
|
| | 19,730 |
| | 17,643 |
| 7.5 | % |
Total Non-Controlled/Non-Affiliate Company Investments | | | | | | | |
|
|
|
| $ | 434,453 |
| $ | 407,457 |
| 175.5 | % |
16
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS –- (continued)
December 31, 2020(unaudited)
June 30, 2022
(in thousands, except for shares and units)
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Junior Secured Loans | ||||||||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||||||
| California Pizza Kitchen, Inc. | L+12.50% | 1.00% Cash/ 14.00% PIK | (l) | 8/19/2016 | 5/23/2025 | 1,264 | $ | 1,264 | $ | 1,011 | 0.4 | % | ||||||||||||
| CSM Bakery Solutions, LLC | L+7.75% | 8.75 | % | 5/23/2013 | 2/4/2022 | 5,954 | 5,954 | 5,909 | 2.5 | % | ||||||||||||||
| 7,218 | 7,218 | 6,920 | 2.9 | % | ||||||||||||||||||||
| Capital Equipment | ||||||||||||||||||||||||
| ALTA Enterprises, LLC (g) | L+8.00% | 9.80 | % | 2/14/2020 | 8/13/2025 | 3,850 | 3,732 | 3,886 | 1.7 | % | ||||||||||||||
| 3,850 | 3,732 | 3,886 | 1.7 | % | ||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Micro Holdings Corp. | L+7.50% | 7.65 | % | 8/16/2017 | 8/18/2025 | 3,000 | 2,981 | 3,024 | 1.3 | % | ||||||||||||||
| 3,000 | 2,981 | 3,024 | 1.3 | % | ||||||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| Education Corporation of America | L+11.00% | 5.75% Cash/ 5.50% PIK | (l) | 9/3/2015 | n/a | (i) | 833 | 831 | 762 | 0.3 | % | |||||||||||||
| 833 | 831 | 762 | 0.3 | % | ||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Junior Secured Loans | 14,901 | 14,762 | 14,592 | 6.2 | % | |||||||||||||||||||
| Equity Securities (u) (v) | ||||||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| J2 BWA Funding, LLC (0.7% profit sharing) (g) | — | — | (w) | 12/24/2020 | — | — | — | — | 0.0 | % | ||||||||||||||
| PKS Holdings, LLC (5,680 preferred units) (g) | n/a | 5.00% PIK | 11/30/2017 | — | — | 58 | 214 | 0.1 | % | |||||||||||||||
| PKS Holdings, LLC (5,714 preferred units) (g) | n/a | 5.00% PIK | 11/30/2017 | — | — | 9 | 33 | 0.0 | % | |||||||||||||||
| PKS Holdings, LLC (132 preferred units) (g) | n/a | 5.00% PIK | 11/30/2017 | — | — | 1 | 5 | 0.0 | % | |||||||||||||||
| PKS Holdings, LLC (916 preferred units) (g) | n/a | 5.00% PIK | 11/30/2017 | — | — | 9 | 33 | 0.0 | % | |||||||||||||||
| 77 | 285 | 0.1 | % | |||||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||||||
| California Pizza Kitchen, Inc. (78,699 preferred units) | — | — | (w) | 8/19/2016 | — | — | 5,468 | 866 | 0.4 | % | ||||||||||||||
| 5,468 | 866 | 0.4 | % | |||||||||||||||||||||
| Capital Equipment | ||||||||||||||||||||||||
| MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) | — | — | (w) | 2/28/2020 | — | — | 119 | 143 | 0.1 | % | ||||||||||||||
| 119 | 143 | 0.1 | % | |||||||||||||||||||||
| Chemicals, Plastics & Rubber | ||||||||||||||||||||||||
| Valudor Products, LLC (501,014 Class A-1 units) | n/a | 10.00% PIK | (l) | 6/18/2018 | — | — | 501 | — | 0.0 | % | ||||||||||||||
| 501 | — | 0.0 | % | |||||||||||||||||||||
| Environmental Industries | ||||||||||||||||||||||||
| Quest Resource Holding Corporation (warrant to purchase up to 0.2% of the equity) | — | — | (w) | 10/19/2020 | 3/19/2028 | — | 67 | 87 | 0.0 | % | ||||||||||||||
| 67 | 87 | 0.0 | % | |||||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| Seran BioScience, LLC (33,333 common units) | — | — | (w) | 12/31/2020 | — | — | 333 | 333 | 0.1 | % | ||||||||||||||
| 333 | 333 | 0.1 | % | |||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Answers Finance, LLC (76,539 shares of common stock) | — | — | (w) | 4/14/2017 | — | — | 2,344 | 54 | 0.0 | % | ||||||||||||||
| MarkLogic Corporation (289,941 Class A units) | — | — | (w) | 10/20/2020 | — | — | 290 | 286 | 0.1 | % | ||||||||||||||
| Planful, Inc. (fka Host Analytics, Inc.) (473,082 Class A units) | n/a | 8.00% PIK | 12/28/2018 | — | — | 473 | 603 | 0.3 | % | |||||||||||||||
| Recorded Future, Inc. (80,486 Class A units) (x) | — | — | (w) | 7/3/2019 | — | — | 81 | 131 | 0.1 | % | ||||||||||||||
| 3,188 | 1,074 | 0.5 | % | |||||||||||||||||||||
| Hotels, Gaming & Leisure | ||||||||||||||||||||||||
| Equine Network, LLC (60 Class A units) | n/a | 10.00% PIK | 12/31/2020 | — | — | 60 | 60 | 0.0 | % | |||||||||||||||
| 60 | 60 | 0.0 | % | |||||||||||||||||||||
| Media: Advertising, Printing & Publishing | ||||||||||||||||||||||||
| AdTheorent Holding Company, LLC (128,866 Class A voting units) | — | — | (w) | 12/22/2016 | — | — | 129 | 445 | 0.2 | % | ||||||||||||||
| InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) (g) (n) | — | — | (w) | 9/18/2015 | 9/18/2025 | — | — | 203 | 0.1 | % | ||||||||||||||
Relevate Health Group, LLC (40 preferred units) | n/a | 12.00% PIK | 11/20/2020 | — | — | 40 | 40 | 0.0 | % | |||||||||||||||
| Relevate Health Group, LLC (40 Class B common units) | — | — | (w) | 11/20/2020 | — | — | — | 1 | 0.0 | % | ||||||||||||||
| Stratus Unlimited, LLC (fka MC Sign Lessor Corp.) (686 shares of common units) | — | — | (w) | 8/30/2019 | — | — | 872 | 996 | 0.4 | % | ||||||||||||||
| XanEdu Publishing, Inc. (49,479 Class A units) | n/a | 8.00% PIK | 1/28/2020 | — | — | 49 | 71 | 0.0 | % | |||||||||||||||
| 1,090 | 1,756 | 0.7 | % | |||||||||||||||||||||
| Media: Diversified & Production | ||||||||||||||||||||||||
| Attom Intermediate Holdco, LLC (297,197 Class A units) | — | — | (w) | 1/4/2019 | — | — | 297 | 371 | 0.2 | % | ||||||||||||||
| 297 | 371 | 0.2 | % | |||||||||||||||||||||
| Retail | ||||||||||||||||||||||||
| BLST Operating Company, LLC (fka Bluestem Brands, Inc.) (139,883 Class A units) | — | — | (w) | 8/28/2020 | — | — | 1,072 | 140 | 0.1 | % | ||||||||||||||
| Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity) | — | — | (w) | 1/14/2020 | 1/14/2029 | — | — | 48 | 0.0 | % | ||||||||||||||
| The Tie Bar Operating Company, LLC - Class A preferred units (1,275 units) | — | — | (w) | 6/25/2013 | — | — | 87 | 4 | 0.0 | % | ||||||||||||||
| The Tie Bar Operating Company, LLC - Class B preferred units (1,275 units) | — | — | (w) | 6/25/2013 | — | — | — | — | 0.0 | % | ||||||||||||||
| 1,159 | 192 | 0.1 | % | |||||||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| APCO Worldwide, Inc. (100 Class A voting common stock) | — | — | (w) | 11/1/2017 | — | — | 395 | 433 | 0.2 | % | ||||||||||||||
| Atlas Sign Industries of FLA, LLC (warrant to purchase up to 0.8% of the equity) | — | — | (w) | 5/14/2018 | 5/14/2026 | — | 125 | 35 | 0.0 | % | ||||||||||||||
| 520 | 468 | 0.2 | % | |||||||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| Education Corporation of America - Series G preferred stock (8,333 shares) | n/a | 12.00% PIK | (l) | 9/3/2015 | — | — | 7,492 | 5,117 | 2.2 | % | ||||||||||||||
| Express Wash Acquisition Company, LLC (100,000 Class A units) | n/a | 8.00% PIK | 12/28/2020 | — | — | 100 | 100 | 0.0 | % | |||||||||||||||
| 7,592 | 5,217 | 2.2 | % | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of |
| |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) | | ||
Non-Controlled Affiliate Company Investments (y) | |
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| |
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| |
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Senior Secured Loans | |
|
|
|
|
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|
|
|
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| |
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| |
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Beverage, Food & Tobacco | |
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| |
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| |
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TJ Management HoldCo LLC (Revolver) (f) | | L+5.50 | % | 7.79 | % | 9/9/2020 |
| 6/28/2024 |
| 477 |
| $ | — |
| $ | — |
| 0.0 | % |
| | | | | | | | | | 477 |
| | — |
| | — |
| 0.0 | % |
FIRE: Real Estate | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
American Community Homes, Inc. | | SF+8.00 | % | 9.64 | % | 7/22/2014 |
| 12/31/2026 |
| 10,923 |
| | 10,923 |
| | 10,119 |
| 4.4 | % |
American Community Homes, Inc. | | SF+14.50 | % | 16.14% PIK |
| 7/22/2014 |
| 12/31/2026 |
| 5,078 |
| | 5,078 |
| | 4,705 |
| 2.0 | % |
American Community Homes, Inc. | | SF+8.00 | % | 9.64 | % | 5/24/2017 |
| 12/31/2026 |
| 662 |
| | 662 |
| | 613 |
| 0.3 | % |
American Community Homes, Inc. | | SF+8.00 | % | 9.64 | % | 8/10/2018 |
| 12/31/2026 |
| 2,435 |
| | 2,435 |
| | 2,256 |
| 1.0 | % |
American Community Homes, Inc. | | SF+8.00 | % | 9.64 | % | 3/29/2019 |
| 12/31/2026 |
| 4,507 |
| | 4,507 |
| | 4,176 |
| 1.8 | % |
American Community Homes, Inc. | | SF+8.00 | % | 9.64 | % | 9/30/2019 |
| 12/31/2026 |
| 21 |
| | 21 |
| | 20 |
| 0.0 | % |
American Community Homes, Inc. | | SF+8.00 | % | 9.64 | % | 12/30/2019 |
| 12/31/2026 |
| 103 |
| | 103 |
| | 96 |
| 0.1 | % |
American Community Homes, Inc. (Revolver) (f) | | SF+8.00 | % | 9.64 | % | 3/30/2020 |
| 12/31/2026 |
| 2,500 |
| | — |
| | — |
| 0.0 | % |
HFZ Capital Group LLC (h) (z) | | L+12.50 | % | 14.00% PIK |
| 10/20/2017 |
| n/a | (o) | 13,242 |
| | 13,242 |
| | 15,617 |
| 6.7 | % |
HFZ Capital Group LLC (h) (z) | | L+12.50 | % | 14.00% PIK |
| 10/20/2017 |
| n/a | (o) | 4,758 |
| | 4,758 |
| | 5,611 |
| 2.4 | % |
MC Asset Management (Corporate), LLC (h) | | L+15.00 | % | 16.00% PIK |
| 1/26/2021 |
| 1/26/2024 |
| 7,744 |
| | 7,744 |
| | 7,744 |
| 3.3 | % |
MC Asset Management (Corporate), LLC (Delayed Draw) (f) (g) (h) | | L+15.00 | % | 16.00% PIK |
| 4/26/2021 |
| 1/26/2024 |
| 1,713 |
| | 920 |
| | 920 |
| 0.4 | % |
Second Avenue SFR Holdings II LLC (Revolver) (f) (h) | | L+7.00 | % | 8.06 | % | 8/11/2021 |
| 8/9/2024 |
| 4,875 |
| | 2,592 |
| | 2,592 |
| 1.1 | % |
| | | | | | | | | | 58,561 |
| | 52,985 |
| | 54,469 |
| 23.5 | % |
Healthcare & Pharmaceuticals | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Ascent Midco, LLC | | L+5.75 | % | 7.42 | % | 2/5/2020 |
| 2/5/2025 |
| 6,304 |
| | 6,235 |
| | 6,304 |
| 2.7 | % |
Ascent Midco, LLC (Revolver) (f) | | L+5.75 | % | 7.42 | % | 2/5/2020 |
| 2/5/2025 |
| 1,129 |
| | — |
| | — |
| 0.0 | % |
| | | | | | | | | | 7,433 |
| | 6,235 |
| | 6,304 |
| 2.7 | % |
High Tech Industries | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Mnine Holdings, Inc. | | L+8.00 | % | 4.24% Cash/ |
| 11/2/2018 |
| 12/30/2022 |
| 5,330 |
| | 5,311 |
| | 5,908 |
| 2.5 | % |
| | | | | | | | | | 5,330 |
| | 5,311 |
| | 5,908 |
| 2.5 | % |
Services: Business | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Curion Holdings, LLC | | n/a |
| 14.00% PIK | (j) | 5/2/2017 |
| 3/31/2023 |
| 4,533 |
| | 4,400 |
| | 5,906 |
| 2.6 | % |
Curion Holdings, LLC (Revolver) (f) | | n/a |
| 14.00% PIK | (j) | 5/2/2017 |
| 3/31/2023 |
| 871 |
| | 150 |
| | 337 |
| 0.1 | % |
| | | | | | | | | | 5,404 |
| | 4,550 |
| | 6,243 |
| 2.7 | % |
Services: Consumer | |
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
NECB Collections, LLC (Revolver) (f) | | L+11.00 | % | 14.61% PIK | (j) | 6/25/2019 |
| n/a | (o) | 1,356 |
| | 1,312 |
| | 515 |
| 0.2 | % |
| | | | | | | | | | 1,356 |
| | 1,312 |
| | 515 |
| 0.2 | % |
Total Non-Controlled Affiliate Senior Secured Loans | | | | | | | | | | 78,561 |
| | 70,393 |
| | 73,439 |
| 31.6 | % |
| | | | | | | | | | | | | | | | | | | |
Junior Secured Loans | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
FIRE: Real Estate | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
SFR Holdco, LLC (h) | | n/a |
| 8.00 | % | 8/6/2021 |
| 7/28/2028 |
| 5,850 |
| | 5,850 |
| | 5,850 |
| 2.5 | % |
| | | | | | | | | | 5,850 |
| | 5,850 |
| | 5,850 |
| 2.5 | % |
Services: Business | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Curion Holdings, LLC | | n/a |
| 15.00% PIK | (j) | 8/17/2018 |
| 1/2/2023 |
| 1,720 |
| | 1 |
| | — |
| 0.0 | % |
Curion Holdings, LLC | | n/a |
| 15.00% PIK | (j) | 8/17/2018 |
| 1/2/2023 |
| 44 |
| | — |
| | — |
| 0.0 | % |
| | | | | | | | | | 1,764 |
| | 1 |
| | — |
| 0.0 | % |
Total Non-Controlled Affiliate Company Junior Secured Loans | | | | | | | | | | 7,614 |
| | 5,851 |
| | 5,850 |
| 2.5 | % |
17
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS –- (continued)
December 31, 2020(unaudited)
June 30, 2022
(in thousands, except for shares and units)
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Wholesale | ||||||||||||||||||||||||
| Nearly Natural, Inc. (152,174 Class A units) | — | — | (w) | 12/15/2017 | — | — | $ | 152 | $ | 190 | 0.1 | % | ||||||||||||
| 152 | 190 | 0.1 | % | |||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Equity Securities | 20,623 | 11,042 | 4.7 | % | ||||||||||||||||||||
| Total Non-Controlled/Non-Affiliate Company Investments | $ | 423,913 | $ | 398,040 | 169.8 | % | ||||||||||||||||||
| Non-Controlled Affiliate Company Investments (y) | ||||||||||||||||||||||||
| Senior Secured Loans | ||||||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 7/22/2014 | 2/26/2021 | 9,401 | $ | 9,401 | $ | 9,401 | 4.0 | % | |||||||||||||
| American Community Homes, Inc. | L+14.50% | 16.00% PIK | 7/22/2014 | 2/26/2021 | 6,239 | 6,239 | 6,239 | 2.7 | % | |||||||||||||||
| American Community Homes, Inc. | L+14.50% | 16.00% PIK | 3/17/2016 | 2/26/2021 | 825 | 825 | 825 | 0.4 | % | |||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 5/24/2017 | 2/26/2021 | 570 | 570 | 570 | 0.2 | % | |||||||||||||||
| American Community Homes, Inc. | L+14.50% | 16.00% PIK | 5/24/2017 | 2/26/2021 | 335 | 335 | 335 | 0.2 | % | |||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 8/10/2018 | 2/26/2021 | 2,095 | 2,095 | 2,915 | 1.2 | % | |||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 3/29/2019 | 2/26/2021 | 3,879 | 3,879 | 3,879 | 1.7 | % | |||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 9/30/2019 | 2/26/2021 | 18 | 18 | 18 | 0.0 | % | |||||||||||||||
| American Community Homes, Inc. | L+10.00% | 11.50% PIK | 12/30/2019 | 2/26/2021 | 89 | 89 | 89 | 0.0 | % | |||||||||||||||
| HFZ Capital Group, LLC (g) (af) | L+12.50% | 14.00% PIK | 10/20/2017 | n/a | (i) | 13,242 | 13,242 | 13,106 | 5.6 | % | ||||||||||||||
| HFZ Capital Group, LLC (g) (af) | L+12.50% | 14.00% PIK | 10/20/2017 | n/a | (i) | 4,758 | 4,758 | 4,709 | 2.0 | % | ||||||||||||||
| MC Asset Management (Industrial), LLC (g) (af) | L+17.00% | 18.00% PIK | 6/11/2019 | 10/30/2024 | 10,702 | 10,695 | 11,579 | 4.9 | % | |||||||||||||||
| 52,153 | 52,146 | 53,665 | 22.9 | % | ||||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||||||
| TJ Management HoldCo, LLC (Revolver) (f) (k) | L+5.50% | 6.50 | % | 9/9/2020 | 9/8/2023 | 795 | — | — | 0.0 | % | ||||||||||||||
| 795 | — | — | 0.0 | % | ||||||||||||||||||||
| Containers, Packaging & Glass | ||||||||||||||||||||||||
| Summit Container Corporation | L+8.00% | 9.00 | % | 12/5/2013 | 3/31/2021 | 3,259 | 3,269 | 3,204 | 1.4 | % | ||||||||||||||
| Summit Container Corporation (Revolver) (f) | L+8.00% | 9.00 | % | 6/15/2018 | 3/31/2021 | 6,015 | 1,657 | 1,654 | 0.7 | % | ||||||||||||||
| 9,274 | 4,926 | 4,858 | 2.1 | % | ||||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| Ascent Midco, LLC (j) | L+5.50% | 6.50 | % | 2/5/2020 | 2/5/2025 | 6,930 | 6,814 | 6,997 | 3.0 | % | ||||||||||||||
| Ascent Midco, LLC (Delayed Draw) (f) (h) (j) | L+5.50% | 6.50 | % | 2/5/2020 | 2/5/2025 | 2,838 | — | — | 0.0 | % | ||||||||||||||
| Ascent Midco, LLC (Revolver) (f) | L+5.50% | 6.50 | % | 2/5/2020 | 2/5/2025 | 1,129 | — | — | 0.0 | % | ||||||||||||||
| SHI Holdings, Inc. (j) | L+10.75% | 10.90% PIK | (l) | 7/10/2014 | n/a | (i) | 2,899 | 2,897 | 188 | 0.1 | % | |||||||||||||
| SHI Holdings, Inc. (Revolver) (f) | L+10.75% | 10.90% PIK | (l) | 7/10/2014 | n/a | (i) | 4,667 | 4,585 | 297 | 0.1 | % | |||||||||||||
| 18,463 | 14,296 | 7,482 | 3.2 | % | ||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Mnine Holdings, Inc. | L+8.00% | 4.00% Cash/ 5.00% PIK | 11/2/2018 | 12/30/2022 | 11,768 | 11,665 | 12,356 | 5.3 | % | |||||||||||||||
| 11,768 | 11,665 | 12,356 | 5.3 | % | ||||||||||||||||||||
| Retail | ||||||||||||||||||||||||
| Luxury Optical Holdings Co. | L+8.00% | 9.00% PIK | (l) | 9/12/2014 | 12/15/2021 | 1,481 | 1,481 | 1,430 | 0.6 | % | ||||||||||||||
| Luxury Optical Holdings Co. (Delayed Draw) (f) (h) | L+11.50% | 12.50 | %(l) | 9/29/2017 | 12/15/2021 | 3,565 | 624 | 624 | 0.3 | % | ||||||||||||||
| Luxury Optical Holdings Co. (Revolver) | L+8.00% | 9.00% PIK | (l) | 9/12/2014 | 12/15/2021 | 68 | 68 | 66 | 0.0 | % | ||||||||||||||
| 5,114 | 2,173 | 2,120 | 0.9 | % | ||||||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| Curion Holdings, LLC (j) | n/a | 14.00% PIK | (l) | 5/2/2017 | 5/2/2022 | 4,226 | 4,189 | 3,159 | 1.4 | % | ||||||||||||||
| Curion Holdings, LLC (Revolver) (f) | n/a | 14.00% PIK | (l) | 5/2/2017 | 5/2/2022 | 871 | 836 | 820 | 0.3 | % | ||||||||||||||
| 5,097 | 5,025 | 3,979 | 1.7 | % | ||||||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| NECB Collections, LLC (Revolver) (f) | L+11.00% | 12.00% PIK | (l) | 6/25/2019 | 6/30/2021 | 1,356 | 1,312 | 834 | 0.3 | % | ||||||||||||||
| 1,356 | 1,312 | 834 | 0.3 | % | ||||||||||||||||||||
| Total Non-Controlled Affiliate Senior Secured Loans | 104,020 | 91,543 | 85,294 | 36.4 | % | |||||||||||||||||||
| Unitranche Secured Loans (r) | ||||||||||||||||||||||||
| Consumer Goods: Non-Durable | ||||||||||||||||||||||||
| Incipio, LLC (z) | L+8.50% | 9.50% PIK | (l) | 12/26/2014 | 8/22/2022 | 14,701 | 14,677 | 1,764 | 0.8 | % | ||||||||||||||
| Incipio, LLC (aa) | L+8.50% | 9.50% PIK | 3/9/2018 | 8/22/2022 | 4,278 | 4,278 | 4,227 | 1.8 | % | |||||||||||||||
| Incipio, LLC | L+8.50% | 9.50% PIK | 7/6/2018 | 8/22/2022 | 1,818 | 1,818 | 1,805 | 0.8 | % | |||||||||||||||
| Incipio, LLC | L+8.50% | 9.50% PIK | 1/15/2020 | 8/22/2022 | 1,530 | 1,530 | 1,519 | 0.6 | % | |||||||||||||||
| Incipio, LLC | L+8.50% | 9.50% PIK | 4/17/2019 | 8/22/2022 | 766 | 766 | 761 | 0.3 | % | |||||||||||||||
| Incipio, LLC (Delayed Draw) (f) (h) | L+8.50% | 9.50% PIK | 7/8/2020 | 8/22/2022 | 2,525 | 1,498 | 1,488 | 0.6 | % | |||||||||||||||
| 25,618 | 24,567 | 11,564 | 4.9 | % | ||||||||||||||||||||
| Total Non-Controlled Affiliate Unitranche Secured Loans | 25,618 | 24,567 | 11,564 | 4.9 | % | |||||||||||||||||||
| Junior Secured Loans | ||||||||||||||||||||||||
| Consumer Goods: Non-Durable | ||||||||||||||||||||||||
| Incipio, LLC (ab) | n/a | 10.70% PIK | (l) | 6/18/2018 | 8/22/2022 | 3,766 | — | — | 0.0 | % | ||||||||||||||
| Incipio, LLC (ac) | n/a | 10.70% PIK | (l) | 6/18/2018 | 8/22/2022 | 7,194 | — | — | 0.0 | % | ||||||||||||||
| 10,960 | — | — | 0.0 | % | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
| Spread Above |
| Interest |
| Acquisition |
| |
| |
| Amortized |
| | |
| % of |
| |
Portfolio Company (a) | | Index (b) | | Rate | | Date (c) | | Maturity | | Principal | | Cost | | Fair Value (d) | | Net Assets (e) | | ||
Equity Securities (r) (y) | |
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
Beverage, Food & Tobacco | |
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
TJ Management HoldCo LLC (16 shares of common stock) (i) (t) | | — |
| — | (s) | 9/9/2020 |
| — |
| — |
| $ | 1,631 |
| $ | 3,030 |
| 1.3 | % |
| | | | | | | | | | | | | 1,631 |
| | 3,030 |
| 1.3 | % |
FIRE: Real Estate | |
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) | | — |
| — | (s) | 10/9/2014 |
| 12/18/2024 |
| — |
| | — |
| | — |
| 0.0 | % |
MC Asset Management (Corporate), LLC (15.9% of interests) (h) (t) (z) | | — |
| — | (s) | 6/11/2019 |
| — |
| — |
| | 793 |
| | 439 |
| 0.2 | % |
SFR Holdco, LLC (24.4% of interests) (h) | | — |
| — | (s) | 8/6/2021 |
| — |
| — |
| | 3,900 |
| | 3,900 |
| 1.7 | % |
| | | | | | | | | | | | | 4,693 |
| | 4,339 |
| 1.9 | % |
Healthcare & Pharmaceuticals | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Ascent Midco, LLC (2,032,258 Class A units) (t) | | n/a |
| 8.00% PIK |
| 2/5/2020 |
| — |
| — |
| | 2,032 |
| | 1,618 |
| 0.7 | % |
Familia Dental Group Holdings, LLC (1,158 Class A units) (t) (aa) | | — |
| — | (s) | 4/8/2016 |
| — |
| — |
| | 3,968 |
| | 2,755 |
| 1.2 | % |
| | | | | | | | | | | | | 6,000 |
| | 4,373 |
| 1.9 | % |
High Tech Industries | |
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
Mnine Holdings, Inc. (6,400 Class B units) | | — |
| — | (s) | 6/30/2020 |
| — |
| — |
| | — |
| | — |
| 0.0 | % |
| | | | | | | | | | | | | — |
| | — |
| 0.0 | % |
Services: Business | |
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
Curion Holdings, LLC (58,779 shares of common stock) | | — |
| — | (s) | 8/17/2018 |
| — |
| — |
| | — |
| | — |
| 0.0 | % |
| | | | | | | | | | | | | — |
| | — |
| 0.0 | % |
Services: Consumer | |
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
|
|
NECB Collections, LLC (20.8% of units) (t) | | — |
| — | (s) | 6/21/2019 |
| — |
| — |
| | 1,458 |
| | — |
| 0.0 | % |
| | | | | | | | | | | | | 1,458 |
| | — |
| 0.0 | % |
Total Non-Controlled Affiliate Equity Securities | | | | | | | |
|
|
|
| | 13,782 |
| | 11,742 |
| 5.1 | % |
Total Non-Controlled Affiliate Company Investments | | | | | | | |
|
|
|
| $ | 90,026 |
| $ | 91,031 |
| 39.2 | % |
| | | | | | | | | | | | | | | | | | | |
Controlled Affiliate Company Investments (ab) | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Equity Securities | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Investment Funds & Vehicles | |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) (h) | | — |
| — |
| 10/31/2017 |
| — |
| — |
| $ | 42,650 |
| $ | 37,551 |
| 16.2 | % |
Total Controlled Affiliate Equity Securities | | | | | | | |
|
|
|
| | 42,650 |
| | 37,551 |
| 16.2 | % |
Total Controlled Affiliate Company Investments | | | | | | | |
|
|
|
| $ | 42,650 |
| $ | 37,551 |
| 16.2 | % |
| | | | | | | | | | | | | | | | | | | |
TOTAL INVESTMENTS | | | | | | | | | | | | $ | 567,129 |
| $ | 536,039 |
| 230.9 | % |
18
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS –- (continued)
December 31, 2020(unaudited)
June 30, 2022
(in thousands, except for shares and units)
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate | Acquisition Date (c) | Maturity | Principal | Amortized Cost | Fair Value (d) | % of Net Assets (e) | ||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| Curion Holdings, LLC (j) | n/a | 15.00% PIK | (l) | 8/17/2018 | 1/2/2023 | 1,720 | $ | 1 | $ | — | 0.0 | % | ||||||||||||
| Curion Holdings, LLC (j) | n/a | 15.00% PIK | (l) | 8/17/2018 | 1/2/2023 | 44 | — | — | 0.0 | % | ||||||||||||||
| 1,764 | 1 | — | 0.0 | % | ||||||||||||||||||||
| Total Non-Controlled Affiliate Company Junior Secured Loans | 12,724 | 1 | — | 0.0 | % | |||||||||||||||||||
| Equity Securities (v) (y) | ||||||||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||||||
| American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) | — | — | (w) | 10/9/2014 | 12/18/2024 | — | — | — | 0.0 | % | ||||||||||||||
| MC Asset Management (Corporate), LLC (15.9% of interests) (g) (af) | — | — | (w) | 6/11/2019 | — | — | 793 | 785 | 0.3 | % | ||||||||||||||
| 793 | 785 | 0.3 | % | |||||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||||||
| TJ Management HoldCo, LLC (16 shares of common stock) (k) | — | — | (w) | 9/9/2020 | — | — | 2,386 | 3,323 | 1.4 | % | ||||||||||||||
| 2,386 | 3,323 | 1.4 | % | |||||||||||||||||||||
| Consumer Goods: Non-Durable | ||||||||||||||||||||||||
| Incipio, LLC (1,774 shares of Series C common units) | — | — | (w) | 7/6/2018 | — | — | — | — | 0.0 | % | ||||||||||||||
| — | — | 0.0 | % | |||||||||||||||||||||
| Containers, Packaging & Glass | ||||||||||||||||||||||||
| Summit Container Corporation (warrant to purchase up to 19.5% of the equity) | — | — | (w) | 1/6/2014 | 1/6/2024 | — | — | 139 | 0.1 | % | ||||||||||||||
| — | 139 | 0.1 | % | |||||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||||||
| Ascent Midco, LLC (2,032,258 Class A units) | n/a | 8.00% PIK | 2/5/2020 | — | — | 2,032 | 3,016 | 1.3 | % | |||||||||||||||
| Familia Dental Group Holdings, LLC (1,052 Class A units) (ad) | — | — | (w) | 4/8/2016 | — | — | 3,602 | 3,118 | 1.3 | % | ||||||||||||||
| SHI Holdings, Inc. (24 shares of common stock) | — | — | (w) | 12/14/2016 | — | — | 27 | — | 0.0 | % | ||||||||||||||
| 5,661 | 6,134 | 2.6 | % | |||||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||||||
| Mnine Holdings, Inc. (6,400 Class B units) | — | — | (w) | 6/30/2020 | — | — | — | — | 0.0 | % | ||||||||||||||
| — | — | 0.0 | % | |||||||||||||||||||||
| Retail | ||||||||||||||||||||||||
| Luxury Optical Holdings Co. (91 preferred units) | n/a | 15.00% PIK | (l) | 9/12/2014 | — | — | 3,631 | 2,476 | 1.1 | % | ||||||||||||||
| Luxury Optical Holdings Co. (86 shares of common stock) | — | — | (w) | 9/29/2017 | — | — | — | — | 0.0 | % | ||||||||||||||
| 3,631 | 2,476 | 1.1 | % | |||||||||||||||||||||
| Services: Business | ||||||||||||||||||||||||
| Curion Holdings, LLC (58,779 shares of common stock) | — | — | (w) | 8/17/2018 | — | — | — | — | 0.0 | % | ||||||||||||||
| — | — | 0.0 | % | |||||||||||||||||||||
| Services: Consumer | ||||||||||||||||||||||||
| NECB Collections, LLC (20.8% of units) | — | — | (w) | 6/21/2019 | — | — | 1,458 | — | 0.0 | % | ||||||||||||||
| 1,458 | — | 0.0 | % | |||||||||||||||||||||
| Total Non-Controlled Affiliate Equity Securities | 13,929 | 12,857 | 5.5 | % | ||||||||||||||||||||
| Total Non-Controlled Affiliate Company Investments | $ | 130,040 | $ | 109,715 | 46.8 | % | ||||||||||||||||||
| Controlled Affiliate Company Investments (ae) | ||||||||||||||||||||||||
| Equity Securities | ||||||||||||||||||||||||
| Investment Funds & Vehicles | ||||||||||||||||||||||||
| MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) (g) | — | — | 10/31/2017 | — | — | $ | 42,150 | $ | 39,284 | 16.7 | % | |||||||||||||
| Total Controlled Affiliate Equity Securities | 42,150 | 39,284 | 16.7 | % | ||||||||||||||||||||
| Total Controlled Affiliate Company Investments | $ | 42,150 | $ | 39,284 | 16.7 | % | ||||||||||||||||||
| TOTAL INVESTMENTS | $ | 596,103 | $ | 547,039 | 233.3 | % | ||||||||||||||||||
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2020
(in thousands, except for shares and units)
Derivative Instruments
Foreign currency forward contracts
| Notional Amount | Notional Amount | Unrealized Gain | ||||||||||||||
| Description | to be Purchased | to be Sold | Counterparty | Settlement Date | (Loss) | |||||||||||
| Foreign currency forward contract | $ | 107 | £ | 87 | Bannockburn Global Forex, LLC | 1/4/2021 | $ | (12 | ) | |||||||
| Foreign currency forward contract | $ | 264 | £ | 206 | Bannockburn Global Forex, LLC | 3/3/2021 | (18 | ) | ||||||||
| Foreign currency forward contract | $ | 33 | £ | 26 | Bannockburn Global Forex, LLC | 3/3/2021 | (2 | ) | ||||||||
| Foreign currency forward contract | $ | 103 | £ | 84 | Bannockburn Global Forex, LLC | 4/2/2021 | (12 | ) | ||||||||
| Foreign currency forward contract | $ | 271 | £ | 212 | Bannockburn Global Forex, LLC | 6/1/2021 | (19 | ) | ||||||||
| Foreign currency forward contract | $ | 33 | £ | 26 | Bannockburn Global Forex, LLC | 6/1/2021 | (2 | ) | ||||||||
| Foreign currency forward contract | $ | 103 | £ | 83 | Bannockburn Global Forex, LLC | 7/2/2021 | (11 | ) | ||||||||
| Foreign currency forward contract | $ | 102 | £ | 83 | Bannockburn Global Forex, LLC | 10/4/2021 | (11 | ) | ||||||||
| Foreign currency forward contract | $ | 101 | £ | 82 | Bannockburn Global Forex, LLC | 1/3/2022 | (11 | ) | ||||||||
| Foreign currency forward contract | $ | 97 | £ | 79 | Bannockburn Global Forex, LLC | 4/4/2022 | (11 | ) | ||||||||
| Foreign currency forward contract | $ | 36 | £ | 29 | Bannockburn Global Forex, LLC | 5/6/2022 | (4 | ) | ||||||||
| $ | (113 | ) | ||||||||||||||
| | | | | | | | | | | | | |
|
| Notional Amount |
| Notional Amount |
| |
| Settlement |
| Unrealized Gain | |||
Description | | to be Purchased | | to be Sold | | Counterparty | | Date | | (Loss) | |||
Foreign currency forward contract | | $ | 107 |
| AUD | 138 |
| Bannockburn Global Forex, LLC |
| 7/18/2022 | | $ | 11 |
Foreign currency forward contract | | $ | 108 |
| AUD | 140 |
| Bannockburn Global Forex, LLC |
| 8/16/2022 | |
| 11 |
Foreign currency forward contract | | $ | 118 |
| AUD | 153 |
| Bannockburn Global Forex, LLC |
| 9/16/2022 | |
| 13 |
Foreign currency forward contract | | $ | 117 |
| AUD | 152 |
| Bannockburn Global Forex, LLC |
| 10/19/2022 | |
| 12 |
Foreign currency forward contract | | $ | 105 |
| AUD | 136 |
| Bannockburn Global Forex, LLC |
| 11/16/2022 | |
| 11 |
Foreign currency forward contract | | $ | 109 |
| AUD | 142 |
| Bannockburn Global Forex, LLC |
| 12/16/2022 | |
| 11 |
Foreign currency forward contract | | $ | 118 |
| AUD | 153 |
| Bannockburn Global Forex, LLC |
| 1/18/2023 | |
| 13 |
Foreign currency forward contract | | $ | 108 |
| AUD | 140 |
| Bannockburn Global Forex, LLC |
| 2/16/2023 | |
| 11 |
Foreign currency forward contract | | $ | 102 |
| AUD | 132 |
| Bannockburn Global Forex, LLC |
| 3/16/2023 | |
| 11 |
Foreign currency forward contract | | $ | 123 |
| AUD | 160 |
| Bannockburn Global Forex, LLC |
| 4/20/2023 | |
| 13 |
Foreign currency forward contract | | $ | 93 |
| AUD | 121 |
| Bannockburn Global Forex, LLC |
| 5/16/2023 | |
| 9 |
Foreign currency forward contract | | $ | 121 |
| AUD | 156 |
| Bannockburn Global Forex, LLC |
| 6/19/2023 | |
| 13 |
Foreign currency forward contract | | $ | 107 |
| AUD | 138 |
| Bannockburn Global Forex, LLC |
| 7/18/2023 | |
| 11 |
Foreign currency forward contract | | $ | 113 |
| AUD | 146 |
| Bannockburn Global Forex, LLC |
| 8/16/2023 | |
| 12 |
Foreign currency forward contract | | $ | 113 |
| AUD | 146 |
| Bannockburn Global Forex, LLC |
| 9/18/2023 | |
| 12 |
Foreign currency forward contract | | $ | 114 |
| AUD | 148 |
| Bannockburn Global Forex, LLC |
| 10/18/2023 | |
| 12 |
Foreign currency forward contract | | $ | 107 |
| AUD | 140 |
| Bannockburn Global Forex, LLC |
| 11/16/2023 | |
| 11 |
Foreign currency forward contract | | $ | 109 |
| AUD | 142 |
| Bannockburn Global Forex, LLC |
| 12/18/2023 | |
| 11 |
Foreign currency forward contract | | $ | 115 |
| AUD | 150 |
| Bannockburn Global Forex, LLC |
| 1/17/2024 | |
| 12 |
Foreign currency forward contract | | $ | 110 |
| AUD | 143 |
| Bannockburn Global Forex, LLC |
| 2/16/2024 | |
| 11 |
Foreign currency forward contract | | $ | 11,827 |
| AUD | 15,410 |
| Bannockburn Global Forex, LLC |
| 3/18/2024 | |
| 1,190 |
| | | | | | | | | | | | $ | 1,421 |
| (a) | All of the Company’s investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of the Company’s investments are issued by U.S. portfolio companies unless otherwise noted. |
| (b) | The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) |
| (c) | Except as otherwise noted, all of the Company’s portfolio company investments, which as of |
| (d) | Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs by the Company’s board of directors as required by the 1940 Act. (See Note 4 in the accompanying notes to the consolidated financial statements.) |
| (e) | Percentages are based on net assets of |
| (f) | All or a portion of this commitment was unfunded at |
| (g) | This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings. |
19
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
June 30, 2022
(in thousands, except for shares and units)
| (h) | This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of |
| (i) |
| During |
| (j) | This position was on non-accrual status as of |
| (k) | This investment represents a note convertible to preferred shares of the borrower. |
| (l) |
| (m) | This is an international company. |
| (n) |
| (o) | This |
| (p) |
| The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan, in which case the “first out” portion of the loan will generally receive priority with respect to payments of principal, interest and any other amounts due thereunder. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and the Company’s unitranche secured loans will expose the Company to the risks associated with second lien and subordinated loans and may limit the Company’s recourse or ability to recover collateral upon a portfolio company’s bankruptcy. Unitranche secured loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche secured loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases the Company, together with its affiliates, are the sole or majority lender of these unitranche secured loans, which can afford the Company additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of underperformance. |
| (q) |
| Represents less than 5% ownership of the portfolio company’s voting securities. |
| (r) | Ownership of certain equity investments may occur through a holding company or partnership. |
| (s) | Represents a non-income producing security. |
| (t) |
| (u) | As of |
| (v) | The fair value of this investment was valued using Level 1 inputs. See Note 4 in the accompanying notes to the consolidated financial statements. |
| (w) | During the three months ended December 31, 2021, the Company sold its investment in Luxury Optical Holding Co. The remaining fair value at June 30, 2022 represents the remaining expected escrow proceeds associated with the sale. |
| (x) | As of June 30, 2022, the Company was party to a subscription agreement with a commitment to fund an equity investment of $43. |
20
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
June 30, 2022
(in thousands, except for shares and units)
| (y) | As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns 5% or more of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was an Affiliated Person (but not a portfolio company that the Company is deemed to control). |
| (z) |
The Company restructured its investments in HFZ Capital Group LLC (“HFZ”) and HFZ Member RB portfolio, LLC (“Member RB”) during |
| (aa) | As of June 30, 2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $244. |
(ab) | As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and to “Control” this portfolio company as it owns more than 25% of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control. |
n/a - not applicable
See Notes to Consolidated Financial Statements.21
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread |
| |
| |
| |
| |
| | |
| | |
| |
|
| | Above | | | | Acquisition | | | | | | | | | Fair | | % of | | |
Portfolio Company (a) | | Index (b) |
| Interest Rate |
| Date (c) |
| Maturity |
| Principal |
| Amortized Cost |
| Value (d) |
| Net Assets (e) | | ||
Non-Controlled/Non-Affiliate Company Investments |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Senior Secured Loans |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Automotive |
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
Born To Run, LLC |
| L+6.00 | % | 7.00 | % | 4/1/2021 |
| 4/1/2027 |
| 3,483 | | $ | 3,419 | | $ | 3,544 |
| 1.4 | % |
Born To Run, LLC (Delayed Draw) (f) (g) |
| L+6.00 | % | 7.00 | % | 4/1/2021 |
| 4/1/2027 |
| 569 | |
| 33 | |
| 34 |
| 0.0 | % |
Hastings Manufacturing Company |
| L+7.25 | % | 8.25 | % | 4/24/2018 |
| 4/24/2023 |
| 2,524 | |
| 2,508 | |
| 2,524 |
| 1.0 | % |
Lifted Trucks Holdings, LLC |
| L+5.75 | % | 6.75 | % | 8/2/2021 |
| 8/2/2027 |
| 7,000 | |
| 6,866 | |
| 6,979 |
| 2.8 | % |
Lifted Trucks Holdings, LLC (Delayed Draw) (f) (g) |
| L+5.75 | % | 6.75 | % | 8/2/2021 |
| 8/2/2027 |
| 1,400 | |
| — | |
| — |
| 0.0 | % |
Lifted Trucks Holdings, LLC (Revolver) (f) |
| L+5.75 | % | 6.75 | % | 8/2/2021 |
| 8/2/2027 |
| 1,667 | |
| 444 | |
| 443 |
| 0.2 | % |
Magneto & Diesel Acquisition, Inc. |
| L+5.50 | % | 6.50 | % | 12/18/2018 |
| 12/18/2023 |
| 4,850 | |
| 4,812 | |
| 4,850 |
| 1.9 | % |
Magneto & Diesel Acquisition, Inc. |
| L+5.50 | % | 6.50 | % | 7/6/2020 |
| 12/18/2023 |
| 1,908 | |
| 1,885 | |
| 1,938 |
| 0.8 | % |
Magneto & Diesel Acquisition, Inc. |
| L+5.50 | % | 6.50 | % | 8/4/2021 |
| 12/18/2023 |
| 829 | |
| 815 | |
| 842 |
| 0.4 | % |
Magneto & Diesel Acquisition, Inc. (Revolver) (f) |
| L+5.50 | % | 6.50 | % | 12/18/2018 |
| 12/18/2023 |
| 500 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 24,730 | | | 20,782 | | | 21,154 | | 8.5 | % |
Banking |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
MV Receivables II, LLC (Delayed Draw) (f) (g) (h) |
| L+9.75 | % | 11.25 | % | 7/29/2021 |
| 7/29/2026 |
| 8,000 | |
| 971 | |
| 1,289 |
| 0.5 | % |
StarCompliance MidCo, LLC |
| L+6.75 | % | 7.75 | % | 1/12/2021 |
| 1/11/2027 |
| 2,000 | |
| 1,965 | |
| 2,000 |
| 0.8 | % |
StarCompliance MidCo, LLC |
| L+6.75 | % | 7.75 | % | 10/12/2021 |
| 1/11/2027 |
| 336 | |
| 329 | |
| 336 |
| 0.1 | % |
StarCompliance MidCo, LLC (Revolver) (f) |
| L+6.75 | % | 7.75 | % | 1/12/2021 |
| 1/11/2027 |
| 322 | |
| — | |
| — |
| 0.0 | % |
|
| | | | | | | | | 10,658 | | | 3,265 |
| | 3,625 | | 1.4 | % |
Beverage, Food & Tobacco |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
LVF Holdings, Inc. |
| L+6.25 | % | 7.25 | % | 6/10/2021 |
| 6/10/2027 |
| 1,496 | |
| 1,468 | |
| 1,496 |
| 0.6 | % |
LVF Holdings, Inc. |
| L+6.25 | % | 7.25 | % | 6/10/2021 |
| 6/10/2027 |
| 1,432 | |
| 1,432 | |
| 1,432 |
| 0.6 | % |
LVF Holdings, Inc. (Delayed Draw) (f) (g) |
| L+6.25 | % | 7.25 | % | 6/10/2021 |
| 6/10/2027 |
| 344 | |
| — | |
| — |
| 0.0 | % |
LVF Holdings, Inc. (Revolver) (f) |
| L+6.25 | % | 7.25 | % | 6/10/2021 |
| 6/10/2027 |
| 238 | |
| 119 | |
| 119 |
| 0.0 | % |
LX/JT Intermediate Holdings, Inc. (k) |
| L+6.00 | % | 7.50 | % | 3/11/2020 |
| 3/11/2025 |
| 9,375 | |
| 9,246 | |
| 9,239 |
| 3.7 | % |
LX/JT Intermediate Holdings, Inc. (Revolver) (f) |
| L+6.00 | % | 7.50 | % | 3/11/2020 |
| 3/11/2025 |
| 833 | |
| — | |
| — |
| 0.0 | % |
Toojay’s Management LLC (l) |
| n/a |
| n/a | (m) | 10/26/2018 |
| 10/26/2022 |
| 1,448 | |
| 1,407 | |
| — |
| 0.0 | % |
Toojay’s Management LLC (l) |
| n/a |
| n/a | (m) | 10/26/2018 |
| 10/26/2022 |
| 199 | |
| 199 | |
| — |
| 0.0 | % |
Toojay’s Management LLC (Revolver) (l) |
| n/a |
| n/a | (m) | 10/26/2018 |
| 10/26/2022 |
| 66 | |
| 66 | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 15,431 | | | 13,937 | | | 12,286 | | 4.9 | % |
22
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
| | Spread | | | | | | | | | | | | | | | | |
|
| | Above | | | | Acquisition | | | | | | | | | | | | % of |
|
Portfolio Company (a) |
| Index (b) |
| Interest Rate |
| Date (c) |
| Maturity |
| Principal |
| Amortized Cost |
| Fair Value (d) |
| Net Assets (e) |
| ||
Capital Equipment | | | | | | | | | | | | | | | | | | | |
MCP Shaw Acquisitionco, LLC (k) |
| SF+6.50 | % | 7.50 | % | 2/28/2020 |
| 11/28/2025 |
| 9,733 | | $ | 9,595 | | $ | 9,699 |
| 3.9 | % |
MCP Shaw Acquisitionco, LLC |
| SF+6.50 | % | 7.50 | % | 12/29/2021 |
| 11/28/2025 |
| 3,002 | |
| 2,942 | |
| 2,992 |
| 1.2 | % |
MCP Shaw Acquisitionco, LLC (Delayed Draw) (f) (g) |
| SF+6.50 | % | 7.50 | % | 12/29/2021 |
| 11/28/2025 |
| 983 | |
| — | |
| — |
| 0.0 | % |
MCP Shaw Acquisitionco, LLC (Revolver) (f) |
| SF+6.50 | % | 7.50 | % | 2/28/2020 |
| 11/28/2025 |
| 1,784 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 15,502 | | | 12,537 | | | 12,691 | | 5.1 | % |
Chemicals, Plastics & Rubber | | | | | | | | | | | | | | | | | | | |
Valudor Products LLC |
| L+7.50 | % | 7.00% Cash/ |
| 6/18/2018 |
| 6/19/2023 |
| 1,585 | |
| 1,574 | |
| 1,871 |
| 0.7 | % |
Valudor Products LLC |
| L+7.50 | % | 8.50 | % | 12/22/2021 |
| 6/19/2023 |
| 548 | |
| 548 | |
| 1,469 |
| 0.6 | % |
Valudor Products LLC (n) |
| L+7.50 | % | 8.50% PIK |
| 6/18/2018 |
| 6/19/2023 |
| 237 | |
| 234 | |
| 230 |
| 0.1 | % |
Valudor Products LLC (Revolver) (f) |
| L+9.50 | % | 10.50 | % | 6/18/2018 |
| 6/19/2023 |
| 1,095 | |
| 480 | |
| 479 |
| 0.2 | % |
|
| |
| |
| |
| | | 3,465 | | | 2,836 | | | 4,049 | | 1.6 | % |
Construction & Building | | | | | | | | | | | | | | | | | | | |
Dude Solutions Holdings, Inc. |
| L+6.25 | % | 7.25 | % | 6/14/2019 |
| 6/13/2025 |
| 9,900 | |
| 9,755 | |
| 9,870 |
| 4.0 | % |
Dude Solutions Holdings, Inc. (Revolver) (f) |
| L+6.25 | % | 7.25 | % | 6/14/2019 |
| 6/13/2025 |
| 1,304 | |
| — | |
| — |
| 0.0 | % |
TCFIII OWL Buyer LLC |
| L+6.00 | % | 7.00 | % | 4/19/2021 |
| 4/17/2026 |
| 2,040 | |
| 2,008 | |
| 2,040 |
| 0.8 | % |
TCFIII OWL Buyer LLC |
| L+6.00 | % | 7.00 | % | 4/19/2021 |
| 4/17/2026 |
| 2,491 | |
| 2,491 | |
| 2,491 |
| 1.0 | % |
TCFIII OWL Buyer LLC |
| L+6.00 | % | 7.00 | % | 12/17/2021 |
| 4/17/2026 |
| 2,235 | |
| 2,196 | |
| 2,235 |
| 0.9 | % |
|
| |
| |
| |
| | | 17,970 | | | 16,450 | | | 16,636 | | 6.7 | % |
Consumer Goods: Durable | | | | | | | | | | | | | | | | | | | |
Independence Buyer, Inc. |
| L+5.75 | % | 6.75 | % | 8/3/2021 |
| 8/3/2026 |
| 6,000 | |
| 5,887 | |
| 6,000 |
| 2.4 | % |
Independence Buyer, Inc. (Revolver) (f) |
| L+5.75 | % | 6.75 | % | 8/3/2021 |
| 8/3/2026 |
| 1,423 | |
| — | |
| — |
| 0.0 | % |
Recycled Plastics Industries, LLC |
| L+6.75 | % | 7.75 | % | 8/4/2021 |
| 8/4/2026 |
| 3,491 | |
| 3,426 | |
| 3,491 |
| 1.4 | % |
Recycled Plastics Industries, LLC (Revolver) (f) |
| L+6.75 | % | 7.75 | % | 8/4/2021 |
| 8/4/2026 |
| 473 | |
| 142 | |
| 142 |
| 0.1 | % |
|
| |
| |
| |
| | | 11,387 | | | 9,455 | | | 9,633 | | 3.9 | % |
Consumer Goods: Non-Durable | | | | | | | | | | | | | | | | | | | |
The Kyjen Company, LLC |
| L+6.50 | % | 7.50 | % | 5/14/2021 |
| 4/3/2026 |
| 993 | |
| 983 | |
| 997 |
| 0.4 | % |
The Kyjen Company, LLC (Revolver) (f) |
| L+6.50 | % | 7.50 | % | 5/14/2021 |
| 4/3/2026 |
| 105 | |
| 43 | |
| 43 |
| 0.0 | % |
Thrasio, LLC |
| L+7.00 | % | 8.00 | % | 12/18/2020 |
| 12/18/2026 |
| 2,470 | |
| 2,438 | |
| 2,470 |
| 1.0 | % |
|
| |
| |
| |
| | | 3,568 | | | 3,464 | | | 3,510 | | 1.4 | % |
Environmental Industries | | | | | | | | | | | | | | | | | | | |
Quest Resource Management Group, LLC |
| L+6.50 | % | 7.50 | % | 10/19/2020 |
| 10/20/2025 |
| 990 | |
| 924 | |
| 989 |
| 0.4 | % |
Quest Resource Management Group, LLC |
| L+6.50 | % | 7.50 | % | 10/19/2020 |
| 10/20/2025 |
| 1,087 | |
| 1,087 | |
| 1,086 |
| 0.4 | % |
Quest Resource Management Group, LLC |
| L+6.50 | % | 7.50 | % | 12/7/2021 |
| 10/20/2025 |
| 3,856 | |
| 3,779 | |
| 3,853 |
| 1.6 | % |
Quest Resource Management Group, LLC (Delayed Draw) (f) (g) |
| L+6.50 | % | 7.50 | % | 12/7/2021 |
| 10/20/2025 |
| 1,778 | |
| — | |
| — |
| 0.0 | % |
StormTrap, LLC |
| L+5.50 | % | 6.50 | % | 12/10/2018 |
| 12/8/2023 |
| 7,170 | |
| 7,114 | |
| 7,170 |
| 2.9 | % |
StormTrap, LLC (Revolver) (f) |
| L+5.50 | % | 6.50 | % | 12/10/2018 |
| 12/8/2023 |
| 432 | |
| — | |
| — |
| 0.0 | % |
Synergy Environmental Corporation (k) |
| L+6.00 | % | 7.00 | % | 4/29/2016 |
| 9/29/2023 |
| 2,853 | |
| 2,846 | |
| 2,853 |
| 1.1 | % |
Synergy Environmental Corporation (k) |
| L+6.00 | % | 7.00 | % | 4/29/2016 |
| 9/29/2023 |
| 477 | |
| 476 | |
| 477 |
| 0.2 | % |
Synergy Environmental Corporation |
| L+6.00 | % | 7.00 | % | 4/29/2016 |
| 9/29/2023 |
| 810 | |
| 810 | |
| 810 |
| 0.3 | % |
Synergy Environmental Corporation (Revolver) (f) |
| L+6.00 | % | 7.00 | % | 4/29/2016 |
| 9/29/2023 |
| 671 | |
| — | |
| — |
| 0.0 | % |
|
| | | | | | | | | 20,124 |
| | 17,036 | |
| 17,238 | | 6.9 | % |
23
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread |
| |
| |
| |
| |
| | |
| | |
| |
|
| | Above | | | | Acquisition | | | | | | | | | Fair | | % of | | |
Portfolio Company (a) | | Index (b) | | Interest Rate | | Date (c) | | Maturity | | Principal | | Amortized Cost | | Value (d) | | Net Assets (e) | | ||
FIRE: Finance | | | | | | | | | | | | | | | | | | | |
J2 BWA Funding LLC (Delayed Draw) (f) (g) (h) |
| n/a |
| 9.00 | % | 12/24/2020 |
| 12/24/2026 |
| 2,710 | | $ | 677 | | $ | 677 |
| 0.3 | % |
Liftforward SPV II, LLC (h) |
| L+10.75 | % | 11.25 | % | 11/10/2016 |
| 9/30/2022 |
| 744 | |
| 744 | |
| 713 |
| 0.3 | % |
Oceana Australian Fixed Income Trust (h) (i) (j) |
| n/a |
| 10.75 | % | 6/29/2021 |
| 6/29/2026 |
| 3,288 | |
| 3,400 | |
| 3,288 |
| 1.3 | % |
Oceana Australian Fixed Income Trust (h) (i) (j) |
| n/a |
| 11.50 | % | 2/25/2021 |
| 2/25/2026 |
| 7,805 | |
| 8,460 | |
| 7,805 |
| 3.1 | % |
W3 Monroe RE Debt LLC (h) |
| n/a |
| 10.00% PIK |
| 2/5/2021 |
| 2/4/2028 |
| 2,906 | |
| 2,906 | |
| 2,906 |
| 1.2 | % |
|
| |
| |
| |
| | | 17,453 | | | 16,187 | | | 15,389 | | 6.2 | % |
FIRE: Real Estate |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Florida East Coast Industries, LLC (h) |
| n/a |
| 10.50 | % | 8/9/2021 |
| 6/28/2024 |
| 3,572 | |
| 3,477 | |
| 3,571 |
| 1.4 | % |
NCBP Property, LLC (h) |
| L+9.50 | % | 10.50 | % | 12/18/2020 |
| 12/16/2022 |
| 1,950 | |
| 1,940 | |
| 1,955 |
| 0.8 | % |
|
| |
| |
| |
| | | 5,522 | | | 5,417 | | | 5,526 | | 2.2 | % |
Healthcare & Pharmaceuticals |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Apotheco, LLC |
| L+8.50 | % | 6.50% Cash/ |
| 4/8/2019 |
| 4/8/2024 |
| 3,632 | |
| 3,597 | |
| 3,462 |
| 1.4 | % |
Apotheco, LLC (Revolver) |
| L+8.50 | % | 6.50% Cash/ |
| 4/8/2019 |
| 4/8/2024 |
| 955 | |
| 955 | |
| 910 |
| 0.4 | % |
Brickell Bay Acquisition Corp. |
| L+6.50 | % | 7.50 | % | 2/12/2021 |
| 2/12/2026 |
| 1,899 | |
| 1,865 | |
| 1,889 |
| 0.7 | % |
Brickell Bay Acquisition Corp. (Delayed Draw) (f) (g) |
| L+6.50 | % | 7.50 | % | 2/12/2021 |
| 2/12/2026 |
| 382 | |
| — | |
| — |
| 0.0 | % |
Caravel Autism Health, LLC |
| L+5.75 | % | 6.75 | % | 6/30/2021 |
| 6/30/2027 |
| 5,000 | |
| 4,906 | |
| 4,699 |
| 1.9 | % |
Caravel Autism Health, LLC (Delayed Draw) (f) (g) |
| L+5.75 | % | 6.75 | % | 6/30/2021 |
| 6/30/2027 |
| 3,750 | |
| 187 | |
| 176 |
| 0.1 | % |
Caravel Autism Health, LLC (Revolver) (f) |
| L+5.75 | % | 6.75 | % | 6/30/2021 |
| 6/30/2027 |
| 1,250 | |
| 625 | |
| 587 |
| 0.2 | % |
Dorado Acquisition, Inc. |
| L+6.75 | % | 7.75 | % | 6/30/2021 |
| 6/30/2026 |
| 4,988 | |
| 4,895 | |
| 4,983 |
| 2.0 | % |
Dorado Acquisition, Inc. (Delayed Draw) (f) (g) |
| L+6.75 | % | 7.75 | % | 6/30/2021 |
| 6/30/2026 |
| 216 | |
| — | |
| — |
| 0.0 | % |
Dorado Acquisition, Inc. (Revolver) (f) |
| L+6.75 | % | 7.75 | % | 6/30/2021 |
| 6/30/2026 |
| 596 | |
| — | |
| — |
| 0.0 | % |
INH Buyer, Inc. |
| L+6.00 | % | 7.00 | % | 6/30/2021 |
| 6/28/2028 |
| 2,939 | |
| 2,911 | |
| 2,857 |
| 1.1 | % |
NationsBenefits, LLC |
| L+7.00 | % | 8.00 | % | 8/20/2021 |
| 8/20/2026 |
| 4,000 | |
| 3,924 | |
| 3,993 |
| 1.6 | % |
NationsBenefits, LLC (Revolver) (f) |
| L+7.00 | % | 8.00 | % | 8/20/2021 |
| 8/20/2026 |
| 445 | |
| — | |
| — |
| 0.0 | % |
Rockdale Blackhawk, LLC |
| n/a |
| n/a | (o) | 3/31/2015 |
| n/a | (p) | — | | | — | |
| 1,681 |
| 0.7 | % |
Seran BioScience, LLC |
| L+6.25 | % | 7.25 | % | 12/31/2020 |
| 12/31/2025 |
| 2,481 | |
| 2,440 | |
| 2,487 |
| 1.0 | % |
Seran BioScience, LLC (Revolver) (f) |
| L+6.25 | % | 7.25 | % | 12/31/2020 |
| 12/31/2025 |
| 444 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 32,977 | | | 26,305 | | | 27,724 | | 11.1 | % |
High Tech Industries |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Arcstor Midco, LLC |
| L+7.00 | % | 8.00 | % | 3/16/2021 |
| 3/16/2027 |
| 4,466 | |
| 4,386 | |
| 4,433 |
| 1.8 | % |
MarkLogic Corporation |
| L+6.00 | % | 7.00 | % | 10/20/2020 |
| 10/20/2025 |
| 3,465 | |
| 3,396 | |
| 3,517 |
| 1.4 | % |
MarkLogic Corporation |
| L+6.00 | % | 7.00 | % | 11/23/2021 |
| 10/20/2025 |
| 323 | |
| 317 | |
| 330 |
| 0.1 | % |
MarkLogic Corporation (Delayed Draw) (f) (g) |
| L+6.00 | % | 7.00 | % | 11/23/2021 |
| 10/20/2025 |
| 215 | |
| — | |
| — |
| 0.0 | % |
MarkLogic Corporation (Revolver) (f) |
| L+6.00 | % | 7.00 | % | 10/20/2020 |
| 10/20/2025 |
| 269 | |
| — | |
| — |
| 0.0 | % |
Mindbody, Inc. |
| L+8.50 | % | 8.00% Cash/ |
| 2/15/2019 |
| 2/14/2025 |
| 6,487 | |
| 6,415 | |
| 6,438 |
| 2.6 | % |
Mindbody, Inc. |
| L+8.50 | % | 8.00% Cash/ |
| 9/22/2021 |
| 2/14/2025 |
| 669 | |
| 669 | |
| 664 |
| 0.3 | % |
Mindbody, Inc. (Revolver) (f) |
| L+8.00 | % | 9.00 | % | 2/15/2019 |
| 2/14/2025 |
| 667 | |
| — | |
| — |
| 0.0 | % |
Newforma, Inc. (k) |
| L+5.50 | % | 6.50 | % | 6/30/2017 |
| 6/30/2022 |
| 3,890 | |
| 3,882 | |
| 3,890 |
| 1.6 | % |
Newforma, Inc. (Revolver) (f) |
| L+5.50 | % | 6.50 | % | 6/30/2017 |
| 6/30/2022 |
| 1,250 | |
| — | |
| — |
| 0.0 | % |
Planful, Inc. |
| L+6.50 | % | 7.50 | % | 12/28/2018 |
| 12/30/2024 |
| 9,500 | |
| 9,414 | |
| 9,472 |
| 3.8 | % |
Planful, Inc. |
| L+6.50 | % | 7.50 | % | 1/11/2021 |
| 12/30/2024 |
| 1,325 | |
| 1,325 | |
| 1,322 |
| 0.5 | % |
Planful, Inc. (Revolver) (f) |
| L+6.50 | % | 7.50 | % | 12/28/2018 |
| 12/30/2024 |
| 442 | |
| 88 | |
| 88 |
| 0.0 | % |
|
| |
| |
| |
| | | 32,968 | | | 29,892 | | | 30,154 | | 12.1 | % |
Hotels, Gaming & Leisure |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Equine Network, LLC |
| L+8.00 | % | 9.00 | % | 12/31/2020 |
| 12/31/2025 |
| 1,737 | |
| 1,704 | |
| 1,733 |
| 0.7 | % |
Equine Network, LLC |
| L+8.00 | % | 9.00 | % | 1/29/2021 |
| 12/31/2025 |
| 788 | |
| 774 | |
| 786 |
| 0.3 | % |
Equine Network, LLC (Delayed Draw) (f) (g) |
| L+8.00 | % | 9.00 | % | 12/31/2020 |
| 12/31/2025 |
| 427 | |
| — | |
| — |
| 0.0 | % |
Equine Network, LLC (Revolver) (f) |
| L+8.00 | % | 9.00 | % | 12/31/2020 |
| 12/31/2025 |
| 171 | |
| 85 | |
| 85 |
| 0.1 | % |
|
| |
| |
| |
| | | 3,123 | | | 2,563 | | | 2,604 | | 1.1 | % |
24
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread |
| |
| |
| |
| |
| | |
| | |
| |
|
| | Above | | | | Acquisition | | | | | | | | | Fair | | % of | | |
Portfolio Company (a) |
| Index (b) |
| Interest Rate |
| Date (c) |
| Maturity |
| Principal |
| Amortized Cost |
| Value (d) |
| Net Assets (e) | | ||
Media: Advertising, Printing & Publishing | | | | | | | | | | | | | | | | | | | |
Destination Media, Inc. (k) |
| L+5.50 | % | 6.50 | % | 4/7/2017 |
| 4/7/2022 |
| 1,738 | | $ | 1,736 | | $ | 1,738 |
| 0.7 | % |
Destination Media, Inc. (Revolver) (f) |
| L+5.50 | % | 6.50 | % | 4/7/2017 |
| 4/7/2022 |
| 542 | |
| — | |
| — |
| 0.0 | % |
North Haven USHC Acquisition, Inc. |
| L+6.00 | % | 7.00 | % | 10/30/2020 |
| 10/30/2025 |
| 2,475 | |
| 2,435 | |
| 2,475 |
| 1.0 | % |
North Haven USHC Acquisition, Inc. |
| L+6.00 | % | 7.00 | % | 3/12/2021 |
| 10/30/2025 |
| 717 | |
| 717 | |
| 717 |
| 0.3 | % |
North Haven USHC Acquisition, Inc. (Delayed Draw) (f) (g) |
| L+6.00 | % | 7.00 | % | 9/3/2021 |
| 10/30/2025 |
| 1,441 | |
| 482 | |
| 487 |
| 0.2 | % |
North Haven USHC Acquisition, Inc. (Revolver) (f) |
| L+6.00 | % | 7.00 | % | 10/30/2020 |
| 10/30/2025 |
| 240 | |
| — | |
| — |
| 0.0 | % |
Relevate Health Group, LLC |
| L+6.00 | % | 7.00 | % | 11/20/2020 |
| 11/20/2025 |
| 1,489 | |
| 1,465 | |
| 1,504 |
| 0.6 | % |
Relevate Health Group, LLC (Delayed Draw) (f) (g) |
| L+6.00 | % | 7.00 | % | 11/20/2020 |
| 11/20/2025 |
| 784 | |
| 666 | |
| 673 |
| 0.3 | % |
Relevate Health Group, LLC (Revolver) (f) |
| L+6.00 | % | 7.00 | % | 11/20/2020 |
| 11/20/2025 |
| 316 | |
| — | |
| — |
| 0.0 | % |
Spherix Global Inc. |
| SF+6.00 | % | 7.00 | % | 12/22/2021 |
| 12/22/2026 |
| 1,100 | |
| 1,081 | |
| 1,081 |
| 0.4 | % |
Spherix Global Inc. (Revolver) (f) |
| SF+6.00 | % | 7.00 | % | 12/22/2021 |
| 12/22/2026 |
| 122 | |
| — | |
| — |
| 0.0 | % |
XanEdu Publishing, Inc. |
| L+6.50 | % | 7.50 | % | 1/28/2020 |
| 1/28/2025 |
| 4,631 | |
| 4,555 | |
| 4,647 |
| 1.8 | % |
XanEdu Publishing, Inc. (Revolver) (f) |
| L+6.50 | % | 7.50 | % | 1/28/2020 |
| 1/28/2025 |
| 742 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 16,337 | | | 13,137 | | | 13,322 | | 5.3 | % |
Media: Broadcasting & Subscription |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Vice Group Holding Inc. |
| L+12.00 | % | 5.50% Cash/ |
| 5/2/2019 |
| 11/2/2022 |
| 1,526 | |
| 1,523 | |
| 1,526 |
| 0.6 | % |
Vice Group Holding Inc. |
| L+12.00 | % | 5.50% Cash/ |
| 11/4/2019 |
| 11/2/2022 |
| 293 | |
| 291 | |
| 293 |
| 0.1 | % |
Vice Group Holding Inc. |
| L+12.00 | % | 5.50% Cash/ |
| 5/2/2019 |
| 11/2/2022 |
| 478 | |
| 478 | |
| 478 |
| 0.2 | % |
Vice Group Holding Inc. |
| L+12.00 | % | 5.50% Cash/ |
| 5/2/2019 |
| 11/2/2022 |
| 180 | |
| 180 | |
| 180 |
| 0.1 | % |
|
| |
| |
| |
| | | 2,477 | | | 2,472 | | | 2,477 | | 1.0 | % |
Media: Diversified & Production |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Attom Intermediate Holdco, LLC |
| L+6.15 | % | 7.15 | % | 1/4/2019 |
| 1/4/2024 |
| 1,940 | |
| 1,923 | |
| 1,937 |
| 0.8 | % |
Attom Intermediate Holdco, LLC |
| L+6.15 | % | 7.15 | % | 6/25/2020 |
| 1/4/2024 |
| 473 | |
| 467 | |
| 472 |
| 0.2 | % |
Attom Intermediate Holdco, LLC |
| L+6.15 | % | 7.15 | % | 7/1/2021 |
| 1/4/2024 |
| 279 | |
| 273 | |
| 278 |
| 0.1 | % |
Attom Intermediate Holdco, LLC (Revolver) (f) |
| L+5.75 | % | 6.75 | % | 1/4/2019 |
| 1/4/2024 |
| 320 | |
| 160 | |
| 160 |
| 0.1 | % |
Chess.com, LLC |
| L+6.50 | % | 7.50 | % | 12/31/2021 |
| 12/31/2027 |
| 6,000 | |
| 5,880 | |
| 5,880 |
| 2.3 | % |
Chess.com, LLC (Revolver) (f) |
| L+6.50 | % | 7.50 | % | 12/31/2021 |
| 12/31/2027 |
| 652 | |
| — | |
| — |
| 0.0 | % |
Crownpeak Technology, Inc. |
| L+5.75 | % | 6.75 | % | 2/28/2019 |
| 2/28/2024 |
| 4,000 | |
| 3,962 | |
| 4,000 |
| 1.6 | % |
Crownpeak Technology, Inc. |
| L+5.75 | % | 6.75 | % | 2/28/2019 |
| 2/28/2024 |
| 60 | |
| 60 | |
| 60 |
| 0.0 | % |
Crownpeak Technology, Inc. (Revolver) (f) |
| L+5.75 | % | 6.75 | % | 2/28/2019 |
| 2/28/2024 |
| 167 | |
| — | |
| — |
| 0.0 | % |
CyberGrants Holdings, LLC |
| L+6.50 | % | 7.25 | % | 9/8/2021 |
| 9/8/2027 |
| 10,900 | |
| 10,744 | |
| 10,900 |
| 4.4 | % |
CyberGrants Holdings, LLC (Delayed Draw) (f) (g) |
| L+6.50 | % | 7.25 | % | 9/8/2021 |
| 9/8/2027 |
| 1,069 | |
| — | |
| — |
| 0.0 | % |
CyberGrants Holdings, LLC (Revolver) (f) |
| L+6.50 | % | 7.25 | % | 9/8/2021 |
| 9/8/2027 |
| 1,069 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 26,929 | | | 23,469 | | | 23,687 | | 9.5 | % |
Retail |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
BLST Operating Company, LLC |
| L+8.50 | % | 1.00% Cash/ | (m) | 8/28/2020 |
| 8/28/2025 | | 1,147 | | | 1,025 | |
| 1,143 |
| 0.5 | % |
Forman Mills, Inc. (k) |
| L+9.50 | % | 8.50% Cash/ |
| 1/14/2020 |
| 12/30/2022 |
| 1,336 | |
| 1,336 | |
| 1,330 |
| 0.5 | % |
Forman Mills, Inc. (k) |
| L+9.50 | % | 8.50% Cash/ |
| 10/4/2016 |
| 12/30/2022 |
| 282 | |
| 281 | |
| 281 |
| 0.1 | % |
Forman Mills, Inc. (k) |
| L+9.50 | % | 8.50% Cash/ |
| 10/4/2016 |
| 12/30/2022 |
| 7,623 | |
| 7,600 | |
| 7,524 |
| 3.0 | % |
|
| |
| |
| |
| | | 10,388 | | | 10,242 | | | 10,278 | | 4.1 | % |
25
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
| | Spread |
| |
| |
| |
| |
| | |
| | |
| |
|
| | Above | | | | Acquisition | | | | | | Amortized | | Fair | | % of |
| ||
Portfolio Company (a) |
| Index (b) |
| Interest Rate |
| Date (c) |
| Maturity |
| Principal |
| Cost |
| Value (d) |
| Net Assets (e) |
| ||
Services: Business | | | | | | | | | | | | | | | | | | | |
Aras Corporation |
| L+7.00 | % | 4.25% Cash/ 3.75% PIK |
| 4/13/2021 |
| 4/13/2027 |
| 2,079 | | $ | 2,044 | | $ | 2,103 |
| 0.8 | % |
Aras Corporation (Revolver) (f) |
| L+7.00 | % | 4.25% Cash/ 3.75% PIK |
| 4/13/2021 |
| 4/13/2027 |
| 150 | |
| — | |
| — |
| 0.0 | % |
Burroughs, Inc. (k) |
| L+6.50 | % | 7.50 | % | 12/22/2017 |
| 12/22/2022 |
| 5,501 | |
| 5,477 | |
| 5,480 |
| 2.2 | % |
Burroughs, Inc. (Revolver) (f) |
| L+6.50 | % | 7.50 | % | 12/22/2017 |
| 12/22/2022 |
| 1,220 | |
| — | |
| — |
| 0.0 | % |
Certify, Inc. |
| L+5.50 | % | 6.50 | % | 2/28/2019 |
| 2/28/2024 |
| 9,000 | |
| 8,935 | |
| 9,000 |
| 3.6 | % |
Certify, Inc. |
| L+5.50 | % | 6.50 | % | 2/28/2019 |
| 2/28/2024 |
| 1,227 | |
| 1,227 | |
| 1,227 |
| 0.5 | % |
Certify, Inc. (Revolver) (f) |
| L+5.50 | % | 6.50 | % | 2/28/2019 |
| 2/28/2024 |
| 409 | |
| 102 | |
| 102 |
| 0.0 | % |
HS4 Acquisitionco, Inc. |
| L+6.75 | % | 7.75 | % | 7/9/2019 |
| 7/9/2025 |
| 10,000 | |
| 9,869 | |
| 9,910 |
| 4.0 | % |
HS4 Acquisitionco, Inc. (Revolver) (f) |
| L+6.75 | % | 7.75 | % | 7/9/2019 |
| 7/9/2025 |
| 817 | |
| — | |
| — | | 0.0 | % |
IT Global Holding LLC (h) |
| L+9.00 | % | 10.00 | % | 11/15/2018 |
| 11/10/2023 |
| 3,405 | |
| 3,374 | |
| 4,411 |
| 1.8 | % |
IT Global Holding LLC (h) |
| L+9.00 | % | 10.00 | % | 7/19/2019 |
| 11/10/2023 |
| 1,270 | |
| 1,255 | |
| 1,645 |
| 0.7 | % |
IT Global Holding LLC (Revolver) (h) |
| L+9.00 | % | 10.00 | % | 11/15/2018 |
| 11/10/2023 |
| 875 | |
| 875 | |
| 1,060 |
| 0.4 | % |
RedZone Robotics, Inc. |
| L+6.75 | % | 7.75 | % | 6/1/2018 |
| 6/5/2023 |
| 213 | |
| 211 | |
| 213 |
| 0.1 | % |
RedZone Robotics, Inc. (Revolver) (f) |
| L+6.75 | % | 7.75 | % | 6/1/2018 |
| 6/5/2023 |
| 158 | |
| — | |
| — |
| 0.0 | % |
Relativity ODA LLC |
| L+7.50 | % | 8.50% PIK |
| 5/12/2021 |
| 5/12/2027 |
| 1,896 | |
| 1,854 | |
| 1,894 |
| 0.8 | % |
Relativity ODA LLC (Revolver) (f) |
| L+7.50 | % | 8.50% PIK |
| 5/12/2021 |
| 5/12/2027 |
| 180 | |
| — | |
| — |
| 0.0 | % |
Security Services Acquisition Sub Corp. |
| L+6.00 | % | 7.00 | % | 9/30/2021 |
| 9/30/2026 |
| 7,980 | |
| 7,872 | |
| 7,972 |
| 3.2 | % |
Security Services Acquisition Sub Corp. (k) |
| L+6.00 | % | 7.00 | % | 2/15/2019 |
| 9/30/2026 |
| 3,413 | |
| 3,382 | |
| 3,409 |
| 1.4 | % |
Security Services Acquisition Sub Corp. (k) |
| L+6.00 | % | 7.00 | % | 2/15/2019 |
| 9/30/2026 |
| 2,455 | |
| 2,455 | |
| 2,452 |
| 1.0 | % |
Security Services Acquisition Sub Corp. (k) |
| L+6.00 | % | 7.00 | % | 2/15/2019 |
| 9/30/2026 |
| 2,157 | |
| 2,157 | |
| 2,154 |
| 0.9 | % |
Security Services Acquisition Sub Corp. |
| L+6.00 | % | 7.00 | % | 2/15/2019 |
| 9/30/2026 |
| 1,551 | |
| 1,551 | |
| 1,549 |
| 0.6 | % |
ServiceMax, Inc. (h) |
| L+7.00 | % | 8.00 | % | 11/1/2021 |
| 11/1/2027 |
| 3,500 | |
| 3,431 | |
| 3,500 |
| 1.4 | % |
ServiceMax, Inc. (Revolver) (f) (h) |
| L+7.00 | % | 8.00 | % | 11/1/2021 |
| 11/1/2027 |
| 350 | |
| — | |
| — |
| 0.0 | % |
VPS Holdings, LLC |
| L+9.00 | % | 8.00% Cash/ |
| 10/5/2018 |
| 10/4/2024 |
| 3,447 | |
| 3,410 | |
| 3,325 |
| 1.3 | % |
VPS Holdings, LLC |
| L+9.00 | % | 8.00% Cash/ |
| 10/5/2018 |
| 10/4/2024 |
| 2,817 | |
| 2,817 | |
| 2,717 |
| 1.1 | % |
VPS Holdings, LLC (Revolver) (f) |
| L+9.00 | % | 8.00% Cash/ |
| 10/5/2018 |
| 10/4/2024 |
| 1,001 | |
| 101 | |
| 97 |
| 0.0 | % |
|
| |
| |
| |
| | | 67,071 | | | 62,399 | | | 64,220 | | 25.8 | % |
Services: Consumer |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
| |
Express Wash Acquisition Company, LLC |
| L+6.50 | % | 7.50 | % | 12/28/2020 |
| 12/26/2025 |
| 3,203 | |
| 3,156 | |
| 3,203 |
| 1.3 | % |
Express Wash Acquisition Company, LLC |
| L+6.50 | % | 7.50 | % | 9/3/2021 |
| 12/26/2025 |
| 7,275 | |
| 7,156 | |
| 7,275 |
| 2.9 | % |
Express Wash Acquisition Company, LLC |
| L+6.50 | % | 7.50 | % | 9/3/2021 |
| 12/26/2025 |
| 3,500 | |
| 3,500 | |
| 3,500 |
| 1.4 | % |
Express Wash Acquisition Company, LLC (Delayed Draw) (f) (g) |
| L+6.50 | % | 7.50 | % | 9/3/2021 |
| 12/26/2025 |
| 2,500 | |
| 925 | |
| 925 |
| 0.4 | % |
Express Wash Acquisition Company, LLC (Revolver) (f) |
| L+6.50 | % | 7.50 | % | 12/28/2020 |
| 12/26/2025 |
| 750 | |
| 400 | |
| 400 |
| 0.2 | % |
IDIG Parent, LLC |
| L+6.00 | % | 7.00 | % | 12/15/2020 |
| 12/15/2026 |
| 5,517 | |
| 5,423 | |
| 5,530 |
| 2.2 | % |
IDIG Parent, LLC |
| L+6.00 | % | 7.00 | % | 12/15/2020 |
| 12/15/2026 |
| 918 | |
| 918 | |
| 920 |
| 0.4 | % |
IDIG Parent, LLC (Revolver) (f) |
| L+6.00 | % | 7.00 | % | 12/15/2020 |
| 12/15/2026 |
| 429 | |
| — | |
| — |
| 0.0 | % |
Mammoth Holdings, LLC |
| L+6.00 | % | 7.00 | % | 10/16/2018 |
| 10/16/2023 |
| 1,940 | |
| 1,924 | |
| 1,940 |
| 0.8 | % |
Mammoth Holdings, LLC |
| L+6.00 | % | 7.00 | % | 10/16/2018 |
| 10/16/2023 |
| 4,073 | |
| 4,073 | |
| 4,073 |
| 1.5 | % |
Mammoth Holdings, LLC |
| L+6.00 | % | 7.00 | % | 3/12/2021 |
| 10/16/2023 |
| 6,355 | |
| 6,355 | |
| 6,368 |
| 2.6 | % |
Mammoth Holdings, LLC (Delayed Draw) (f) (g) |
| L+6.00 | % | 7.00 | % | 6/15/2021 |
| 10/16/2023 |
| 1,646 | |
| 988 | |
| 989 |
| 0.4 | % |
Mammoth Holdings, LLC (Revolver) (f) |
| L+6.00 | % | 7.00 | % | 10/16/2018 |
| 10/16/2023 |
| 657 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 38,763 | | | 34,818 | | | 35,123 | | 14.1 | % |
26
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
| | Spread |
| |
| |
| |
| |
| | |
| | |
| |
|
| | Above | | | | Acquisition | | | | | | | | | | | | % of | |
Portfolio Company (a) |
| Index (b) |
| Interest Rate |
| Date (c) |
| Maturity |
| Principal |
| Amortized Cost |
| Fair Value (d) |
| Net Assets (e) | | ||
Telecommunications | | | | | | | | | | | | | | | | | | | |
Calabrio, Inc. |
| L+7.00 | % | 8.00 | % | 4/16/2021 |
| 4/16/2027 |
| 3,400 | | $ | 3,322 | | $ | 3,400 |
| 1.4 | % |
Calabrio, Inc. (Revolver) (f) |
| L+7.00 | % | 8.00 | % | 4/16/2021 |
| 4/16/2027 |
| 409 | |
| — | |
| — |
| 0.0 | % |
VHT Solutions |
| L+7.00 | % | 8.00% PIK |
| 12/21/2021 |
| 12/21/2026 |
| 1,500 | |
| 1,470 | |
| 1,470 |
| 0.6 | % |
VHT Solutions (Delayed Draw) (f) (g) |
| L+7.00 | % | 8.00% PIK |
| 12/21/2021 |
| 12/21/2026 |
| 120 | |
| — | |
| — |
| 0.0 | % |
VHT Solutions (Revolver) (f) |
| L+7.00 | % | 8.00% PIK |
| 12/21/2021 |
| 12/21/2026 |
| 43 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 5,472 | | | 4,792 | | | 4,870 | | 2.0 | % |
Wholesale |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Nearly Natural, Inc. (k) |
| L+11.50 | % | 8.50% Cash/ |
| 12/15/2017 |
| 12/15/2022 |
| 6,601 | |
| 6,572 | |
| 6,520 |
| 2.6 | % |
Nearly Natural, Inc. |
| L+11.50 | % | 8.50% Cash/ |
| 2/16/2021 |
| 12/15/2022 |
| 3,099 | |
| 3,066 | |
| 3,061 |
| 1.2 | % |
Nearly Natural, Inc. (k) |
| L+11.50 | % | 8.50% Cash/ |
| 9/22/2020 |
| 12/15/2022 |
| 1,706 | |
| 1,691 | |
| 1,685 |
| 0.7 | % |
Nearly Natural, Inc. (k) |
| L+11.50 | % | 8.50% Cash/ |
| 8/28/2019 |
| 12/15/2022 |
| 1,859 | |
| 1,859 | |
| 1,836 |
| 0.7 | % |
Nearly Natural, Inc. (Revolver) |
| L+11.50 | % | 8.50% Cash/ |
| 12/15/2017 |
| 12/15/2022 |
| 2,430 | |
| 2,430 | |
| 2,400 |
| 1.0 | % |
|
| |
| |
| |
| | | 15,695 | | | 15,618 | | | 15,502 | | 6.2 | % |
Total Non-Controlled/Non-Affiliate Senior Secured Loans |
| |
| |
| |
| | | 398,010 | |
| 347,073 | |
| 351,698 |
| 141.1 | % |
| | | | | | | | | | | | | | | | | | | |
Unitranche Secured Loans (q) |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Aerospace & Defense |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Cassavant Holdings, LLC |
| L+6.50 | % | 7.50 | % | 9/8/2021 |
| 9/8/2026 |
| 7,980 | |
| 7,828 | |
| 7,972 |
| 3.2 | % |
|
| |
| |
| |
| | | 7,980 | | | 7,828 | | | 7,972 | | 3.2 | % |
Chemicals, Plastics & Rubber |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
MFG Chemical, LLC (k) |
| L+8.00 | % | 9.00 | % | 6/23/2017 |
| 6/23/2022 |
| 5,555 | |
| 5,546 | |
| 5,555 |
| 2.2 | % |
MFG Chemical, LLC |
| L+8.00 | % | 9.00 | % | 3/15/2018 |
| 6/23/2022 |
| 543 | |
| 543 | |
| 543 |
| 0.2 | % |
|
| |
| |
| |
| | | 6,098 | | | 6,089 | | | 6,098 | | 2.4 | % |
Consumer Goods: Non-Durable |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Vinci Brands LLC (fka Incipio, LLC) |
| n/a |
| 2.00% PIK | (m) | 7/6/2018 |
| 2/6/2024 |
| 7,026 | |
| 7,026 | |
| 4,950 |
| 2.0 | % |
Vinci Brands LLC (fka Incipio, LLC) (r) |
| n/a |
| 2.00% PIK | (m) | 3/9/2018 |
| 2/6/2024 |
| 3,065 | |
| 3,065 | |
| — |
| 0.0 | % |
Vinci Brands LLC (fka Incipio, LLC) (s) |
| n/a |
| 2.00% PIK | (m) | 12/26/2014 |
| 2/6/2024 |
| 13,552 | |
| 13,528 | |
| — |
| 0.0 | % |
Vinci Brands LLC (fka Incipio, LLC) (t) |
| n/a |
| 2.00% PIK | (m) | 12/26/2014 |
| 2/6/2024 |
| 1,149 | |
| 1,149 | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 24,792 | | | 24,768 | | | 4,950 | | 2.0 | % |
Healthcare & Pharmaceuticals |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Priority Ambulance, LLC (u) |
| L+6.50 | % | 7.50 | % | 7/18/2018 |
| 4/12/2022 |
| 10,015 | |
| 10,015 | |
| 10,010 |
| 4.0 | % |
Priority Ambulance, LLC (v) |
| L+6.50 | % | 7.50 | % | 4/12/2017 |
| 4/12/2022 |
| 1,253 | |
| 1,251 | |
| 1,253 |
| 0.5 | % |
Priority Ambulance, LLC |
| L+6.50 | % | 7.50 | % | 12/13/2018 |
| 4/12/2022 |
| 655 | |
| 655 | |
| 655 |
| 0.3 | % |
Priority Ambulance, LLC |
| L+6.50 | % | 7.50 | % | 10/22/2020 |
| 4/12/2022 |
| 990 | |
| 990 | |
| 989 |
| 0.4 | % |
|
| |
| |
| |
| | | 12,913 | | | 12,911 | | | 12,907 | | 5.2 | % |
High Tech Industries |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Energy Services Group, LLC |
| L+8.42 | % | 9.42 | % | 5/4/2017 |
| 5/4/2022 |
| 3,725 | |
| 3,720 | |
| 3,725 |
| 1.5 | % |
Energy Services Group, LLC (h) (w) |
| SN+8.42 | % | 9.42 | % | 5/4/2017 |
| 5/4/2022 |
| 4,541 | |
| 4,458 | |
| 4,541 |
| 1.8 | % |
Energy Services Group, LLC |
| L+8.42 | % | 9.42 | % | 5/4/2017 |
| 5/4/2022 |
| 1,060 | |
| 1,047 | |
| 1,060 |
| 0.4 | % |
WillowTree, LLC |
| L+5.00 | % | 6.00 | % | 10/9/2018 |
| 10/9/2023 |
| 7,639 | |
| 7,584 | |
| 7,651 |
| 3.1 | % |
|
| |
| |
| |
| | | 16,965 | | | 16,809 | | | 16,977 | | 6.8 | % |
27
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread |
| |
| |
| |
| |
| | |
| | |
| |
|
| | Above | | | | Acquisition | | | | | | | | | | | | % of | |
Portfolio Company (a) | | Index (b) | | Interest Rate | | Date (c) | | Maturity | | Principal | | Amortized Cost | | Fair Value (d) | | Net Assets (e) | | ||
Services: Business | | | | | | | | | | | | | | | | | | | |
Onit, Inc. |
| L+7.25 | % | 8.25 | % | 12/20/2021 |
| 5/2/2025 |
| 1,500 | | $ | 1,472 | | $ | 1,472 |
| 0.6 | % |
|
| |
| |
| |
| | | 1,500 | | | 1,472 | | | 1,472 | | 0.6 | % |
Telecommunications | | | | | | | | | | | | | | | | | | | |
VB E1, LLC (Delayed Draw) (f) (g) |
| L+7.65 | % | 8.15 | % | 11/18/2020 |
| 11/18/2026 |
| 2,250 | |
| 1,100 | |
| 1,118 |
| 0.4 | % |
|
| |
| |
| |
| | | 2,250 | | | 1,100 | | | 1,118 | | 0.4 | % |
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans |
| |
| |
| |
| | | 72,498 | | | 70,977 | | | 51,494 | | 20.6 | % |
| | | | | | | | | | | | | | | | | | | |
Junior Secured Loans | | | | | | | | | | | | | | | | | | | |
Banking | | | | | | | | | | | | | | | | | | | |
MoneyLion, Inc. (h) |
| n/a |
| 12.00 | % | 8/27/2021 |
| 5/1/2023 |
| 1,500 | |
| 1,488 | |
| 1,522 |
| 0.6 | % |
|
| |
| |
| |
| | | 1,500 | | | 1,488 | | | 1,522 | | 0.6 | % |
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | |
Florida East Coast Industries, LLC (h) |
| n/a |
| 16.00% PIK |
| 8/9/2021 |
| 6/28/2024 |
| 1,520 | |
| 1,482 | |
| 1,530 |
| 0.6 | % |
Witkoff/Monroe 700 JV LLC (Delayed Draw) (f) (g) (h) |
| n/a |
| 8.00% Cash/ |
| 7/2/2021 |
| 7/2/2026 |
| 5,576 | |
| 4,665 | |
| 4,886 |
| 2.0 | % |
|
| |
| |
| |
| | | 7,096 | | | 6,147 | | | 6,416 | | 2.6 | % |
Services: Consumer | | | | | | | | | | | | | | | | | | | |
Education Corporation of America |
| L+11.00 | % | 5.72% Cash/ | (m) | 9/3/2015 |
| n/a | (p) | 833 | | | 831 | |
| 576 |
| 0.2 | % |
|
| |
| |
| |
| | | 833 | | | 831 | | | 576 | | 0.2 | % |
Total Non-Controlled/Non-Affiliate Junior Secured Loans |
| |
| |
| |
| | | 9,429 | |
| 8,466 | |
| 8,514 |
| 3.4 | % |
| | | | | | | | | | | | | | | | | | | |
Equity Securities (x) (y) |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Automotive |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Born To Run, LLC (269,438 Class A units) |
| — |
| — | (z) | 4/1/2021 |
| — |
| — | |
| 269 | |
| 293 |
| 0.1 | % |
Lifted Trucks Holdings, LLC (111,111 Class A units) (aa) |
| — |
| — | (z) | 8/2/2021 |
| — |
| — | |
| 111 | |
| 109 |
| 0.1 | % |
|
| |
| |
| | | | | | | | 380 | | | 402 | | 0.2 | % |
Banking |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
MV Receivables II, LLC (729 common units) (h) (aa) |
| — |
| — | (z) | 7/29/2021 |
| — |
| — | |
| 300 | |
| 558 |
| 0.2 | % |
MV Receivables II, LLC (warrant to purchase up to 0.8% of the equity) (h) (aa) |
| — |
| — | (z) | 7/28/2021 |
| 7/28/2031 |
| — | |
| 363 | |
| 1,007 |
| 0.4 | % |
|
| |
| |
| | | | | | | | 663 | | | 1,565 | | 0.6 | % |
28
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread |
| |
| |
| |
| | |
| |
| | |
| |
|
| | Above | | | | Acquisition | | | | | | | | | | | | % of | |
Portfolio Company (a) | | Index (b) | | Interest Rate | | Date (c) | | Maturity | | Principal | | Amortized Cost | | Fair Value (d) | | Net Assets (e) | | ||
Beverage, Food & Tobacco |
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
|
|
California Pizza Kitchen, Inc. (78,699 common units) |
| — |
| — | (z) | 8/19/2016 |
| — |
| — | | $ | 5,468 | | $ | 3,699 | | 1.5 | % |
|
| |
| |
| | | | | | | | 5,468 | | | 3,699 | | 1.5 | % |
Capital Equipment |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) (aa) |
| — |
| — | (z) | 2/28/2020 |
| — |
| — | |
| 119 | |
| 148 | | 0.1 | % |
|
| |
| |
| | | | | | | | 119 | | | 148 | | 0.1 | % |
Chemicals, Plastics & Rubber |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
Valudor Products LLC (501,014 Class A-1 units) (aa) |
| n/a |
| 10.00% PIK |
| 6/18/2018 |
| — |
| — | |
| 501 | |
| 16 | | 0.0 | % |
|
| |
| |
| | | | | | | | 501 | | | 16 | | 0.0 | % |
Consumer Goods: Durable |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
Independence Buyer, Inc. (81 Class A units) |
| — |
| — | (z) | 8/3/2021 |
| — | | — | | | 81 | | | 101 |
| 0.0 | % |
|
| | | | | | | | | | | | 81 |
| | 101 | | 0.0 | % |
Environmental Industries |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — | (z) | 10/19/2020 |
| 3/19/2028 | | — | | | 67 | | | 286 |
| 0.1 | % |
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — | (z) | 10/19/2021 |
| 3/19/2028 | | — | | | — | | | 169 |
| 0.1 | % |
|
| |
| |
| | | | | | | | 67 | | | 455 | | 0.2 | % |
FIRE: Finance |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
J2 BWA Funding LLC (0.7% profit sharing) (h) (aa) |
| — |
| — | (z) | 12/24/2020 |
| — | | — | | | — | | | — |
| 0.0 | % |
PKS Holdings, LLC (5,680 preferred units) (h) |
| n/a |
| 12.00% PIK |
| 11/30/2017 |
| — |
| — | |
| 58 | |
| 219 | | 0.1 | % |
PKS Holdings, LLC (5,714 preferred units) (h) |
| n/a |
| 12.00% PIK |
| 11/30/2017 |
| — |
| — | |
| 9 | |
| 34 | | 0.0 | % |
PKS Holdings, LLC (132 preferred units) (h) |
| n/a |
| 12.00% PIK |
| 11/30/2017 |
| — |
| — | |
| 1 | |
| 5 | | 0.0 | % |
PKS Holdings, LLC (916 preferred units) (h) |
| n/a |
| 12.00% PIK |
| 11/30/2017 |
| — |
| — | |
| 9 | |
| 34 | | 0.0 | % |
|
| | | | | | | | | | | | 77 |
| | 292 | | 0.1 | % |
FIRE: Real Estate |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
Witkoff/Monroe 700 JV LLC (2,141 preferred units) (h) (aa) |
| n/a |
| 8.00% Cash/ |
| 7/2/2021 |
| — |
| — | |
| 2 | |
| 2 | | 0.0 | % |
|
| |
| |
| | | | | | | | 2 | | | 2 | | 0.0 | % |
Healthcare & Pharmaceuticals |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
Dorado Acquisition, Inc. (178,891 Class A-1 units) |
| — |
| — | (z) | 6/30/2021 |
| — | | — | | | 179 | |
| 179 | | 0.1 | % |
Dorado Acquisition, Inc. (178,891 Class A-2 units) |
| — |
| — | (z) | 6/30/2021 |
| — | | — | | | — | | | 9 | | 0.0 | % |
NationsBenefits, LLC (888,889 Series A units) (aa) |
| n/a |
| 9.00% PIK |
| 8/20/2021 |
| — |
| — | |
| 736 | |
| 714 | | 0.3 | % |
NationsBenefits, LLC (106,667 shares of common units) (aa) |
| — |
| — | (z) | 8/20/2021 |
| — |
| — | |
| 153 | |
| 67 | | 0.0 | % |
Seran BioScience, LLC (33,333 common units) (aa) |
| — |
| — | (z) | 12/31/2020 |
| — |
| — | |
| 334 | |
| 714 | | 0.3 | % |
|
| |
| |
| | | | | | | | 1,402 | | | 1,683 | | 0.7 | % |
High Tech Industries |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
MarkLogic Corporation (290,239 Class A units) |
| — |
| — | (z) | 10/20/2020 |
| — |
| — | |
| 290 | |
| 423 | | 0.2 | % |
Planful, Inc. (473,082 Class A units) |
| n/a |
| 8.00% PIK |
| 12/28/2018 |
| — |
| — | |
| 473 | |
| 557 | | 0.2 | % |
Recorded Future, Inc. (80,486 Class A units) (ab) |
| — |
| — | (z) | 7/3/2019 |
| — |
| — | |
| 81 | |
| 203 | | 0.1 | % |
|
| |
| |
| | | | | | | | 844 | | | 1,183 | | 0.5 | % |
Hotels, Gaming & Leisure |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
Equine Network, LLC (99 Class A units) (aa) |
| — |
| — | (z) | 12/31/2020 |
| — |
| — | |
| 99 | |
| 102 | | 0.0 | % |
|
| |
| |
| | | | | | | | 99 | | | 102 | | 0.0 | % |
29
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
| | Spread | | |
| |
| |
| | |
| |
| | |
| |
|
| | Above | | | | Acquisition | | | | | | | | | | | | % of | |
Portfolio Company (a) |
| Index (b) |
| Interest Rate |
| Date (c) |
| Maturity |
| Principal |
| Amortized Cost |
| Fair Value (d) |
| Net Assets (e) | | ||
Media: Advertising, Printing & Publishing | | | | | | | | | | | | | | | | | | | |
AdTheorent Holding Company, Inc. (177,362 shares of common stock) (h) (aj) | | — |
| — | (z) | 12/22/2016 |
| — |
| — | | $ | 114 | | $ | 1,041 | | 0.4 | % |
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) (h) (j) | | — |
| — | (z) | 9/18/2015 |
| 9/18/2025 |
| — | |
| — | |
| 2,204 | | 0.9 | % |
Relevate Health Group, LLC (40 preferred units) | | n/a |
| 12.00% PIK |
| 11/20/2020 |
| — |
| — | |
| 40 | |
| 40 | | 0.0 | % |
Relevate Health Group, LLC (40 Class B common units) | | — |
| — | (z) | 11/20/2020 |
| — |
| — | |
| — | |
| — | | 0.0 | % |
Spherix Global Inc. (81 Class A units) | | — |
| — | (z) | 12/22/2021 |
| — |
| — | |
| 81 | |
| 81 | | 0.0 | % |
XanEdu Publishing, Inc. (49,479 Class A units) | | n/a |
| 8.00% PIK |
| 1/28/2020 |
| — |
| — | |
| 49 | |
| 106 | | 0.0 | % |
| | |
| |
| | | | | | | | 284 | | | 3,472 | | 1.3 | % |
Media: Diversified & Production | | | | | | | | | | | | | | | | | | | |
Attom Intermediate Holdco, LLC (297,197 Class A units) (aa) | | — |
| — | (z) | 1/4/2019 |
| — |
| — | |
| 297 | |
| 446 | | 0.2 | % |
Chess.com, LLC (2 Class A units) (aa) | | — |
| — | (z) | 12/31/2021 |
| — |
| — | |
| 87 | |
| 87 | | 0.0 | % |
| | |
| |
| | | | | | | | 384 | | | 533 | | 0.2 | % |
Retail | | | | | | | | | | | | | | | | | | | |
BLST Operating Company, LLC (139,883 Class A units) (aa) | | — |
| — | (z) | 8/28/2020 |
| — |
| — | |
| 712 | |
| 420 | | 0.2 | % |
Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity) (k) | | — |
| — | (z) | 1/14/2020 |
| 1/14/2029 |
| — | |
| — | |
| 702 | | 0.3 | % |
Luxury Optical Holdings Co. (af) | | n/a |
| n/a | (z) | 9/12/2014 |
| — |
| — | |
| — | |
| 78 | | 0.0 | % |
| | |
| |
| | | | | | | | 712 | | | 1,200 | | 0.5 | % |
Services: Business | | | | | | | | | | | | | | | | | | | |
APCO Worldwide, Inc. (100 Class A voting common stock) | | — |
| — | (z) | 11/1/2017 |
| — |
| — | |
| 395 | |
| 737 | | 0.3 | % |
| | |
| |
| | | | | | | | 395 | | | 737 | | 0.3 | % |
Services: Consumer | | | | | | | | | | | | | | | | | | | |
Education Corporation of America - Series G Preferred Stock (8,333 shares) | | n/a |
| 12.00% PIK | (m) | 9/3/2015 |
| — |
| — | |
| 7,492 | |
| 2,281 | | 0.9 | % |
Express Wash Acquisition Company, LLC (121,311 Class A units) (aa) | | n/a |
| 8.00% PIK |
| 12/28/2020 |
| — |
| — | |
| 125 | |
| 208 | | 0.1 | % |
IDIG Parent, LLC (245,958 shares of common stock) (aa) (ac) | | — |
| — | (z) | 1/4/2021 |
| — |
| — | |
| 248 | |
| 428 | | 0.2 | % |
| | |
| |
| | | | | | | | 7,865 | | | 2,917 | | 1.2 | % |
Wholesale | |
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
Nearly Natural, Inc. (152,174 Class A units) | | — |
| — | (z) | 12/15/2017 |
| — |
| — | |
| 153 | |
| 69 | | 0.0 | % |
Nearly Natural, Inc. (39,394 Class AA units) | | — |
| — | (z) | 8/27/2021 |
| — |
| — | |
| 39 | |
| 5 | | 0.0 | % |
| | |
| |
| | | | | | | | 192 | | | 74 | | 0.0 | % |
Total Non-Controlled/Non-Affiliate Equity Securities | | |
| |
| | |
|
|
| |
| 19,535 | |
| 18,581 | | 7.4 | % |
Total Non-Controlled/Non-Affiliate Company Investments | | |
| |
| | |
|
|
| | $ | 446,051 | | $ | 430,287 | | 172.5 | % |
30
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread |
| |
| |
| |
| |
| | |
| | |
| |
|
| | Above | | | | Acquisition | | | | | | | | | | | | % of | |
Portfolio Company (a) | | Index (b) | | Interest Rate | | Date (c) | | Maturity | | Principal | | Amortized Cost | | Fair Value (d) | | Net Assets (e) | | ||
Non-Controlled Affiliate Company Investments (ad) | | | | | | | | | | | | | | | | | | | |
Senior Secured Loans | | | | | | | | | | | | | | | | | | | |
Beverage, Food & Tobacco | | | | | | | | | | | | | | | | | | | |
TJ Management HoldCo LLC (Revolver) (f) |
| L+5.50 | % | 6.50 | % | 9/9/2020 |
| 6/28/2024 |
| 477 | | $ | — | | $ | — |
| 0.0 | % |
|
| |
| |
| |
| | | 477 | | | — | | | — | | 0.0 | % |
FIRE Real Estate | | | | | | | | | | | | | | | | | | | |
American Community Homes, Inc. |
| L+10.00 | % | 11.50% PIK |
| 7/22/2014 |
| 3/31/2022 |
| 10,457 | |
| 10,457 | |
| 10,457 |
| 4.2 | % |
American Community Homes, Inc. |
| L+14.50 | % | 16.00% PIK |
| 7/22/2014 |
| 3/31/2022 |
| 4,753 | |
| 4,753 | |
| 4,753 |
| 1.9 | % |
American Community Homes, Inc. |
| L+10.00 | % | 11.50% PIK |
| 5/24/2017 |
| 3/31/2022 |
| 634 | |
| 634 | |
| 634 |
| 0.3 | % |
American Community Homes, Inc. |
| L+10.00 | % | 11.50% PIK |
| 8/10/2018 |
| 3/31/2022 |
| 2,331 | |
| 2,331 | |
| 3,164 |
| 1.3 | % |
American Community Homes, Inc. |
| L+10.00 | % | 11.50% PIK |
| 3/29/2019 |
| 3/31/2022 |
| 4,315 | |
| 4,315 | |
| 4,357 |
| 1.8 | % |
American Community Homes, Inc. |
| L+10.00 | % | 11.50% PIK |
| 9/30/2019 |
| 3/31/2022 |
| 20 | |
| 20 | |
| 20 |
| 0.0 | % |
American Community Homes, Inc. |
| L+10.00 | % | 11.50% PIK |
| 12/30/2019 |
| 3/31/2022 |
| 99 | |
| 99 | |
| 99 |
| 0.0 | % |
HFZ Capital Group LLC (h) (ae) |
| L+12.50 | % | 14.00% PIK |
| 10/20/2017 |
| n/a | (p) | 13,242 | |
| 13,242 | |
| 15,084 |
| 6.0 | % |
HFZ Capital Group LLC (h) (ae) |
| L+12.50 | % | 14.00% PIK |
| 10/20/2017 |
| n/a | (p) | 4,758 | |
| 4,758 | |
| 5,420 |
| 2.2 | % |
MC Asset Management (Corporate), LLC (h) |
| L+15.00 | % | 16.00% PIK |
| 1/26/2021 |
| 1/26/2024 |
| 7,154 | |
| 7,154 | |
| 7,154 |
| 2.9 | % |
MC Asset Management (Corporate), LLC (Delayed Draw) (f) (g) (h) |
| L+15.00 | % | 16.00% PIK |
| 4/26/2021 |
| 1/26/2024 |
| 1,643 | |
| 850 | |
| 850 |
| 0.3 | % |
Second Avenue SFR Holdings II LLC (Revolver) (f) (h) |
| L+7.00 | % | 7.50 | % | 8/11/2021 |
| 8/9/2024 |
| 4,875 | |
| 2,104 | |
| 2,104 |
| 0.8 | % |
|
| |
| |
| |
| | | 54,281 | | | 50,717 | | | 54,096 | | 21.7 | % |
Healthcare & Pharmaceuticals | | | | | | | | | | | | | | | | | | | |
Ascent Midco, LLC (k) |
| L+5.50 | % | 6.50 | % | 2/5/2020 |
| 2/5/2025 |
| 6,392 | |
| 6,308 | |
| 6,392 |
| 2.6 | % |
Ascent Midco, LLC (Revolver) (f) |
| L+5.50 | % | 6.50 | % | 2/5/2020 |
| 2/5/2025 |
| 1,129 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 7,521 | | | 6,308 | | | 6,392 | | 2.6 | % |
High Tech Industries | | | | | | | | | | | | | | | | | | | |
Mnine Holdings, Inc. |
| L+8.00 | % | 4.00% Cash/ |
| 11/2/2018 |
| 12/30/2022 |
| 5,193 | |
| 5,165 | |
| 5,771 |
| 2.3 | % |
|
| |
| |
| |
| | | 5,193 | | | 5,165 | | | 5,771 | | 2.3 | % |
Services: Business | | | | | | | | | | | | | | | | | | | |
Curion Holdings, LLC (ag) |
| n/a |
| 14.00% PIK | (m) | 5/2/2017 |
| 8/31/2022 |
| 4,533 | |
| 4,497 | |
| 4,561 |
| 1.8 | % |
Curion Holdings, LLC (Revolver) (f) |
| n/a |
| 14.00% PIK | (m) | 5/2/2017 |
| 8/31/2022 |
| 871 | |
| 528 | |
| 550 |
| 0.2 | % |
|
| |
| |
| |
| | | 5,404 | | | 5,025 | | | 5,111 | | 2.0 | % |
Services: Consumer | | | | | | | | | | | | | | | | | | | |
NECB Collections, LLC (Revolver) (f) |
| L+11.00 | % | 12.00% PIK | (m) | 6/25/2019 |
| n/a | (p) | 1,356 | | | 1,312 | |
| 632 |
| 0.3 | % |
|
| |
| |
| |
| | | 1,356 | | | 1,312 | | | 632 | | 0.3 | % |
Total Non-Controlled Affiliate Senior Secured Loans |
| |
| |
| |
| | | 74,232 | | | 68,527 | | | 72,002 | | 28.9 | % |
| | | | | | | | | | | | | | | | | | | |
Junior Secured Loans | | | | | | | | | | | | | | | | | | | |
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | |
Second Avenue SFR Holdings II LLC (h) |
| n/a |
| 8.00 | % | 8/6/2021 |
| 7/28/2028 |
| 5,850 | |
| 5,850 | |
| 5,850 |
| 2.3 | % |
|
| |
| |
| |
| | | 5,850 | | | 5,850 | | | 5,850 | | 2.3 | % |
Services: Business | | | | | | | | | | | | | | | | | | | |
Curion Holdings, LLC (k) |
| n/a |
| 15.00% PIK | (m) | 8/17/2018 |
| 1/2/2023 |
| 1,720 | |
| 1 | |
| — |
| 0.0 | % |
Curion Holdings, LLC (k) |
| n/a |
| 15.00% PIK | (m) | 8/17/2018 |
| 1/2/2023 |
| 44 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | | 1,764 | | | 1 | | | — | | 0.0 | % |
Total Non-Controlled Affiliate Company Junior Secured Loans |
| |
| |
| |
| | | 7,614 | | | 5,851 | | | 5,850 | | 2.3 | % |
| | | | | | | | | | | | | | | | | | | |
Equity Securities (y) (ad) | | | | | | | | | | | | | | | | | | | |
Beverage, Food & Tobacco | | | | | | | | | | | | | | | | | | | |
TJ Management HoldCo LLC (16 shares of common stock) (l) (aa) |
| — |
| — | (z) | 9/9/2020 |
| — |
| — | |
| 1,631 | |
| 3,148 |
| 1.3 | % |
|
| |
| |
| | | | | | | | 1,631 | | | 3,148 | | 1.3 | % |
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | |
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) |
| — |
| — | (z) | 10/9/2014 |
| 12/18/2024 |
| — | |
| — | |
| 264 |
| 0.1 | % |
MC Asset Management (Corporate), LLC (15.9% of interests) (h) (aa) (ae) |
| — |
| — | (z) | 6/11/2019 |
| — |
| — | |
| 793 | |
| 644 |
| 0.2 | % |
Second Avenue SFR Holdings II LLC (24.4% of interests) (h) |
| — |
| — | (z) | 8/6/2021 |
| — |
| — | |
| 3,900 | |
| 3,900 |
| 1.6 | % |
|
| |
| |
| | | | | | | | 4,693 | | | 4,808 | | 1.9 | % |
31
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | |
|
| Spread |
| |
| |
| |
| |
| | |
| | |
| | |
| | Above | | | | Acquisition | | | | | | | | | | | | % of | |
Portfolio Company (a) | | Index (b) | | Interest Rate | | Date (c) | | Maturity | | Principal | | Amortized Cost | | Fair Value (d) | | Net Assets (e) | | ||
Healthcare & Pharmaceuticals | | | | | | | | | | | | | | | | | | | |
Ascent Midco, LLC (2,032,258 Class A units) (aa) | | n/a |
| 8.00% PIK |
| 2/5/2020 |
| — |
| — | | $ | 2,032 | | $ | 2,554 |
| 1.0 | % |
Familia Dental Group Holdings, LLC (1,105 Class A units) (aa) (ah) | | — |
| — | (z) | 4/8/2016 |
| — |
| — | |
| 3,785 | |
| 1,919 |
| 0.8 | % |
| | |
| |
| | | | | | | | 5,817 | | | 4,473 | | 1.8 | % |
High Tech Industries | | | | | | | | | | | | | | | | | | | |
Mnine Holdings, Inc. (6,400 Class B units) | | — |
| — | (z) | 6/30/2020 |
| — |
| — | |
| — | |
| — |
| 0.0 | % |
| | | | |
| | | | | | | | — | | | — | | 0.0 | % |
Services: Business | | | | | | | | | | | | | | | | | | | |
Curion Holdings, LLC (58,779 shares of common stock) (k) | | — |
| — | (z) | 8/17/2018 |
| — |
| — | |
| — | |
| — |
| 0.0 | % |
| | |
| |
| | | | | | | | — | | | — | | 0.0 | % |
Services: Consumer | | | | | | | | | | | | | | | | | | | |
NECB Collections, LLC (20.8% of units) (aa) | | — |
| — | (z) | 6/21/2019 |
| — |
| — | |
| 1,458 | |
| — |
| 0.0 | % |
| | |
| |
| | | | | | | | 1,458 | | | — | | 0.0 | % |
Total Non-Controlled Affiliate Equity Securities | | |
| |
| | | | | | | | 13,599 | | | 12,429 | | 5.0 | % |
Total Non-Controlled Affiliate Company Investments | | |
| |
| | | | | | | $ | 87,977 | | $ | 90,281 | | 36.2 | % |
| | | | | | | | | | | | | | | | | | | |
Controlled Affiliate Company Investments (ai) | | | | | | | | | | | | | | | | | | | |
Equity Securities | | | | | | | | | | | | | | | | | | | |
Investment Funds & Vehicles | | | | | | | | | | | | | | | | | | | |
MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) (h) |
| — |
| — |
| 10/31/2017 |
| — |
| — | | $ | 42,150 | | $ | 41,125 |
| 16.5 | % |
Total Controlled Affiliate Equity Securities |
| |
| |
| | |
|
|
| |
| 42,150 | |
| 41,125 |
| 16.5 | % |
Total Controlled Affiliate Company Investments | | |
| |
| | |
|
|
| | $ | 42,150 | | $ | 41,125 |
| 16.5 | % |
| | | | | | | | | | | | | | | | | | | |
TOTAL INVESTMENTS | | |
| |
| | |
|
|
| | $ | 576,178 | | $ | 561,693 |
| 225.2 | % |
32
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
Derivative Instruments
Foreign currency forward contracts
| | | | | | | | | | | | | |
| | Notional |
| | |
| | | | |
|
| |
| | Amount | | Notional Amount | | | | Settlement | | Unrealized Gain | |||
Description |
| to be Purchased |
| to be Sold |
| Counterparty |
| Date |
| (Loss) | |||
Foreign currency forward contract | | $ | 101 |
| £ | 82 |
| Bannockburn Global Forex, LLC | | 1/3/2022 | | $ | (10) |
Foreign currency forward contract | | $ | 97 |
| £ | 79 |
| Bannockburn Global Forex, LLC |
| 4/4/2022 | |
| (10) |
Foreign currency forward contract | | $ | 36 |
| £ | 29 |
| Bannockburn Global Forex, LLC |
| 5/6/2022 | |
| (3) |
Foreign currency forward contract | | $ | 121 |
| AUD | 156 |
| Bannockburn Global Forex, LLC |
| 1/19/2022 | |
| 8 |
Foreign currency forward contract | | $ | 105 |
| AUD | 136 |
| Bannockburn Global Forex, LLC |
| 2/16/2022 | |
| 7 |
Foreign currency forward contract | | $ | 102 |
| AUD | 132 |
| Bannockburn Global Forex, LLC |
| 3/16/2022 | |
| 6 |
Foreign currency forward contract | | $ | 113 |
| AUD | 146 |
| Bannockburn Global Forex, LLC |
| 4/19/2022 | |
| 7 |
Foreign currency forward contract | | $ | 107 |
| AUD | 138 |
| Bannockburn Global Forex, LLC |
| 5/17/2022 | |
| 7 |
Foreign currency forward contract | | $ | 119 |
| AUD | 153 |
| Bannockburn Global Forex, LLC |
| 6/17/2022 | |
| 7 |
Foreign currency forward contract | | $ | 107 |
| AUD | 138 |
| Bannockburn Global Forex, LLC |
| 7/18/2022 | |
| 7 |
Foreign currency forward contract | | $ | 108 |
| AUD | 140 |
| Bannockburn Global Forex, LLC |
| 8/16/2022 | |
| 7 |
Foreign currency forward contract | | $ | 118 |
| AUD | 153 |
| Bannockburn Global Forex, LLC |
| 9/16/2022 | |
| 7 |
Foreign currency forward contract | | $ | 117 |
| AUD | 152 |
| Bannockburn Global Forex, LLC |
| 10/19/2022 | |
| 7 |
Foreign currency forward contract | | $ | 105 |
| AUD | 136 |
| Bannockburn Global Forex, LLC |
| 11/16/2022 | |
| 6 |
Foreign currency forward contract | | $ | 109 |
| AUD | 142 |
| Bannockburn Global Forex, LLC |
| 12/16/2022 | |
| 7 |
Foreign currency forward contract | | $ | 118 |
| AUD | 153 |
| Bannockburn Global Forex, LLC |
| 1/18/2023 | |
| 7 |
Foreign currency forward contract | | $ | 108 |
| AUD | 140 |
| Bannockburn Global Forex, LLC |
| 2/16/2023 | |
| 6 |
Foreign currency forward contract | | $ | 102 |
| AUD | 132 |
| Bannockburn Global Forex, LLC |
| 3/16/2023 | |
| 6 |
Foreign currency forward contract | | $ | 123 |
| AUD | 160 |
| Bannockburn Global Forex, LLC |
| 4/20/2023 | |
| 7 |
Foreign currency forward contract | | $ | 93 |
| AUD | 121 |
| Bannockburn Global Forex, LLC |
| 5/16/2023 | |
| 5 |
Foreign currency forward contract | | $ | 121 |
| AUD | 156 |
| Bannockburn Global Forex, LLC |
| 6/19/2023 | |
| 7 |
Foreign currency forward contract | | $ | 107 |
| AUD | 138 |
| Bannockburn Global Forex, LLC |
| 7/18/2023 | |
| 6 |
Foreign currency forward contract | | $ | 113 |
| AUD | 146 |
| Bannockburn Global Forex, LLC |
| 8/16/2023 | |
| 6 |
Foreign currency forward contract | | $ | 113 |
| AUD | 146 |
| Bannockburn Global Forex, LLC |
| 9/18/2023 | |
| 6 |
Foreign currency forward contract | | $ | 114 |
| AUD | 148 |
| Bannockburn Global Forex, LLC |
| 10/18/2023 | |
| 6 |
Foreign currency forward contract | | $ | 107 |
| AUD | 140 |
| Bannockburn Global Forex, LLC |
| 11/16/2023 | |
| 6 |
Foreign currency forward contract | | $ | 109 |
| AUD | 142 |
| Bannockburn Global Forex, LLC |
| 12/18/2023 | |
| 6 |
Foreign currency forward contract | | $ | 115 |
| AUD | 150 |
| Bannockburn Global Forex, LLC |
| 1/17/2024 | |
| 6 |
Foreign currency forward contract | | $ | 110 |
| AUD | 143 |
| Bannockburn Global Forex, LLC |
| 2/16/2024 | |
| 6 |
Foreign currency forward contract | | $ | 11,827 |
| AUD | 15,410 |
| Bannockburn Global Forex, LLC |
| 3/18/2024 | |
| 635 |
| | | | | | | | | | | | $ | 781 |
(a) | All of the Company’s investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of the Company’s investments are issued by U.S. portfolio companies unless otherwise noted. |
(b) | The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), Prime Rate (“Prime” or “P”), Sterling Overnight Index Average (“SONIA” or “SN”) or Secured Overnight Financing Rate (“SOFR” or “SF”) which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, Prime, or SOFR and the current contractual interest rate in effect at December 31, 2021. Certain investments are subject to a LIBOR, Prime, or SOFR interest rate floor, or rate cap. Certain investments contain a Payment-in-Kind (“PIK”) provision. |
(c) | Except as otherwise noted, all of the Company’s portfolio company investments, which as of December 31, 2021 represented 225.2% of the Company’s net assets or 95.1% of the Company’s total assets, are subject to legal restrictions on sales. |
(d) | Except as otherwise noted, because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs by the Company’s board of directors as required by the 1940 Act. See Note 4 in the accompanying notes to the consolidated financial statements. |
(e) | Percentages are based on net assets of $249,471 as of December 31, 2021. |
(f) | All or a portion of this commitment was unfunded at December 31, 2021. As such, interest is earned only on the funded portion of this commitment. |
33
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
(g) | This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings. |
(h) | This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, 2021, non-qualifying assets totaled 22.5% of the Company’s total assets. |
(i) | This loan is denominated in Australian dollars and is translated into U.S. dollars as of the valuation date. |
(j) | This is an international company. |
(k) | All of this loan is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility. |
(l) | During 2020, the senior secured lender group of Toojay’s Management, LLC (“Toojay’s OldCo”) established TJ Management HoldCo, LLC (“Toojay’s NewCo”) in order to acquire certain of the assets of Toojay’s OldCo as part of a bankruptcy restructuring. The Company owns 15.9% of the equity in Toojay’s NewCo. Toojay’s NewCo credit bid a portion of the senior secured debt in Toojay’s OldCo to acquire certain assets of Toojay’s OldCo which constitute the ongoing operations of the portfolio company. The Company’s portion of this credit bid was $2,386, and as such the Company’s outstanding senior secured debt investment in Toojay’s OldCo was reduced by the amount of the credit bid and the Company’s cost basis of its new equity investment in Toojay’s NewCo was increased by the amount of the credit bid. While the Company still has loans outstanding at Toojay’s OldCo, the Company has valued these positions at zero as of December 31, 2021. |
(m) | This position was on non-accrual status as of December 31, 2021, meaning that the Company has ceased accruing interest income on the position. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s accounting policies. |
(n) | This investment represents a note convertible to preferred shares of the borrower. |
(o) | In 2020, an arbitrator issued a final award in favor of the estate of Rockdale Blackhawk, LLC (the “Estate”) in the legal proceeding between the Estate and a national insurance carrier. The Company’s share of the net proceeds from the award exceeded the contractual obligations due to the Company as a result of the Company’s right to receive excess proceeds pursuant to the terms of a sharing agreement between the lenders and the Estate. This investment is a non-income producing security. |
(p) | This is a demand note with no stated maturity. |
(q) | The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan, in which case the “first out” portion of the loan will generally receive priority with respect to payments of principal, interest and any other amounts due thereunder. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and the Company’s unitranche secured loans will expose the Company to the risks associated with second lien and subordinated loans and may limit the Company’s recourse or ability to recover collateral upon a portfolio company’s bankruptcy. Unitranche secured loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche secured loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases the Company, together with its affiliates, are the sole or majority lender of these unitranche secured loans, which can afford the Company additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of underperformance. |
(r) | A portion of this loan (principal of $54) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility. |
(s) | A portion of this loan (principal of $4,969) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility. |
(t) | A portion of this loan (principal of $421) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility. |
(u) | A portion of this loan (principal of $9,258) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility. |
(v) | A portion of this loan (principal of $525) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility. |
34
MONROE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2021
(in thousands, except for shares and units)
(w) | This loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date. |
(x) | Represents less than 5% ownership of the portfolio company’s voting securities. |
(y) | Ownership of certain equity investments may occur through a holding company or partnership. |
(z) | Represents a non-income producing security. |
(aa) | Investment is held by a taxable subsidiary of the Company. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s wholly-owned taxable subsidiaries. |
(ab) | As of December 31, 2021, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $16. |
(ac) | As of December 31, 2021, the Company was party to a subscription agreement with a commitment to fund an equity investment of $43. |
(ad) | As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns 5% or more of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was an Affiliated Person (but not a portfolio company that the Company is deemed to control). |
(ae) | The Company restructured its investment in HFZ Capital Group LLC (“HFZ”) during 2020. As part of the restructuring of HFZ, the Company obtained a 15.9% equity interest in MC Asset Management (Corporate), LLC (“Corporate”). Corporate owns 100% of the equity of MC Asset Management Industrial, LLC (“Industrial”). In conjunction with these restructurings, the Company participated $4,758 of principal of its loan to HFZ as an equity contribution to Industrial. This participation did not qualify for sale accounting under ASC Topic 860–Transfers and Servicing because the sale did not meet the definition of a “participating interest”, as defined in the guidance, in order for sale treatment to be allowed. As a result, the Company continues to reflect its full investment in HFZ but has split the loan into two investments. |
(af) | During the three months ended December 31, 2021, the Company sold its investment in Luxury Optical Holdings Co. The remaining fair value at December 31, 2021 represents the remaining expected escrow proceeds associated with the sale. |
(ag) | A portion of this loan (principal of $4,226) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility. |
(ah) | As of December 31, 2021, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $428. |
(ai) | As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and to “Control” this portfolio company as it owns more than 25% of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control. |
(aj) | The fair value of this investment was valued using Level 1 inputs. See Note 4 in the accompanying notes to the consolidated financial statements. |
n/a - not applicable
35
MONROE CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(unaudited)
(in thousands, except share and per share data)
Note 1. Organization and Principal Business
Monroe Capital Corporation (together with its subsidiaries, the “Company”) is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured (a combination of senior secured and junior secured debt in the same facility in which the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan) debt and, to a lesser extent, unsecured subordinated debt and equity investments.co-investments in preferred and common stock and warrants. The Company is managed by Monroe Capital BDC Advisors, LLC (“MC Advisors”), a registered investment adviser under the Investment Advisers Act of 1940, as amended. In addition, for U.S. federal income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).
On February 28, 2014, the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP (“MRCC SBIC”), a Delaware limited partnership, received a license from the Small Business Administration (“SBA”) to operate as a Small Business Investment Company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958, as amended. MRCC SBIC commenced operations on September 16, 2013. MRCC SBIC received approval from the SBA to surrender its SBIC license and on March 31, 2022, MRCC SBIC was dissolved. See Note 7 for additional information.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Articles 6 and 10 of Regulation S-X. The Company has determined it meets the definition of an investment company and follows the accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 – Financial Services – Investment Companies (“ASC Topic 946”).
Certain prior period amounts have been reclassified to conform to the current period presentation.
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Consolidation
As permitted under ASC Topic 946, the Company will generally not consolidate its investment in a portfolio company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly-owned subsidiaries, including MRCC SBIC (through its dissolution date) and its wholly-owned general partner MCC SBIC GP, LLC, and the Company’s wholly-owned taxable subsidiaries (the “Taxable Subsidies”Subsidiaries”) in its consolidated financial statements. The purpose of the Taxable Subsidiaries is to permit the Company to hold equity investments in portfolio companies that are taxed as partnerships for U.S. federal income tax purposes while complying with the “source of income” requirements contained in the RIC tax provisions. The Taxable Subsidiaries are not consolidated with the Company for U.S. federal corporate income tax purposes, and each Taxable Subsidiary is subject to U.S. federal corporate income tax on its taxable income. All intercompany balances and transactions have been eliminated. The Company does not
36
consolidate its non-controlling interest in MRCC Senior Loan Fund I, LLC (“SLF”). See further description of the Company’s investment in SLF in Note 3.
Fair Value of Financial Instruments
The Company applies fair value to substantially all of its financial instruments in accordance with ASC Topic 820 –— Fair Value Measurements and Disclosures (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value, and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. See Note 4 for further discussion regarding the fair value measurements and hierarchy.
ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company believes that the carrying amounts of its other financial instruments such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such instruments.
Revenue Recognition
The Company’s revenue recognition policies are as follows:
Investments and related investment income: Interest and dividend income is recorded on the accrual basis to the extent that the Company expects to collect such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. The Company records fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service has been completed.
Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the applicable distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. For both the three and ninesix months ended SeptemberJune 30, 2021,2022, the Company received return of capital distributions from its equity investments and its investment in LLC equity in SLF of $0$290 and $1,177,$290, respectively. For the three and ninesix months ended SeptemberJune 30, 2020,2021, the Company did not receivereceived return of capital distributions from its equity investments.
investments and its investment in LLC equity in SLF of $1,117 and $1,177, respectively.
The Company has certain investments in its portfolio that contain a payment-in-kind (“PIK”) provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. The Company stops accruing PIK interest or PIK dividends when it is determined that PIK interest or PIK dividends are no longer collectible. To maintain RIC tax treatment, and to avoid incurring corporate U.S. federal income tax, substantially all of this income must be paid out to stockholders in the form of distributions, even though the Company has not yet collected the cash.
Loan origination fees, original issue discount and market discount or premiums are capitalized, and the Company then amortizes such amounts using the effective interest method as interest income over the life of the investment. Unamortized discounts and loan origination fees totaled $4,646$3,932 and $4,844$4,370 as of SeptemberJune 30, 20212022 and December 31, 2020,2021, respectively. Upfront loan origination and closing fees received for the three and ninesix months ended SeptemberJune 30, 20212022 totaled $1,611$456 and $3,114,$745, respectively. Upfront loan origination and closing fees received for the three and ninesix months ended SeptemberJune 30, 20202021 totaled $94$1,038 and $1,080,$1,503, respectively. Upon the prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are recorded as interest income.
37
The components of the Company’s investment income were as follows:
| | | | | | |
| | Three months ended | ||||
| | June 30, | ||||
| | 2022 | | 2021 | ||
Interest income |
| $ | 9,026 |
| $ | 8,500 |
PIK interest income | |
| 1,397 | |
| 1,734 |
Dividend income (1) | |
| 1,048 | |
| 1,149 |
Fee income | |
| 1,192 | |
| 300 |
Prepayment gain (loss) | |
| 65 | |
| 416 |
Accretion of discounts and amortization of premiums | |
| 267 | |
| 265 |
Total investment income | | $ | 12,995 | | $ | 12,364 |
| Three months ended September 30, | ||||||||
| 2021 | 2020 | |||||||
| Interest income | $ | 9,444 | $ | 10,179 | ||||
| PIK interest income | 2,913 | 1,563 | ||||||
| Dividend income (1) | 1,957 | 1,145 | ||||||
| Fee income | 288 | 26 | ||||||
| Prepayment gain (loss) | 372 | 192 | ||||||
| Accretion of discounts and amortization of premium | 240 | 280 | ||||||
| Total investment income | $ | 15,214 | $ | 13,385 | ||||
| Nine months ended September 30, | ||||||||
| 2021 | 2020 | |||||||
| Interest income | $ | 26,905 | $ | 35,689 | ||||
| PIK interest income | 6,326 | 5,103 | ||||||
| Dividend income (2) | 4,368 | 3,185 | ||||||
| Fee income | 1,065 | 3,047 | ||||||
| Prepayment gain (loss) | 1,270 | 1,045 | ||||||
| Accretion of discounts and amortization of premium | 857 | 960 | ||||||
| Total investment income | $ | 40,791 | $ | 49,029 | ||||
| | | | | | |
| | Six months ended | ||||
| | June 30, | ||||
| | 2022 | | 2021 | ||
Interest income | | $ | 18,111 | | $ | 17,461 |
PIK interest income |
|
| 3,218 |
|
| 3,413 |
Dividend income (2) | |
| 2,057 | |
| 2,411 |
Fee income | |
| 1,192 | |
| 777 |
Prepayment gain (loss) | |
| 263 | |
| 898 |
Accretion of discounts and amortization of premiums | |
| 645 | |
| 617 |
Total investment income | | $ | 25,486 | | $ | 25,577 |
| (1) | Includes PIK dividends of |
| (2) | Includes PIK dividends of |
Investment transactions are recorded on a trade-date basis. Realized gains or losses on portfolio investments are calculated based upon the difference between the net proceeds from the disposition and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized. Realized gains and losses are recorded within net realized gain (loss) on investments on the consolidated statements of operations. Changes in the fair value of investments from the prior period, as determined by the Company’s board of directors (the “Board”) through the application of the Company’s valuation policy, are included within net change in unrealized gain (loss) on investments on the consolidated statements of operations.
Non-accrual: Loans or preferred equity securities are placed on non-accrual status when principal, interest or dividend payments become materially past due, or when there is reasonable doubt that principal, interest or dividends will be collected. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal, interest, or dividends are paid, or are expected to be paid, and, in management’s judgment are likely to remain current. The fair value of the Company’s investments on non-accrual status totaled $17,028$10,776 and $22,273$14,693 at SeptemberJune 30, 20212022 and December 31, 2020,2021, respectively.
Distributions
Distributions to common stockholders are recorded on the applicable record date. The amount, if any, to be distributed to common stockholders is determined by the Board each quarter and is generally based upon the Company’s earnings estimated by management. Net realized capital gains, if any, are generally distributed at least annually.
The determination of the tax attributes for the Company’s distributions is made annually, based upon its taxable income for the full year and distributions paid for the full year. Ordinary dividend distributions from a RIC do not qualify for the preferential tax rate on qualified dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax
38
attributes for distributions will generally include both ordinary income and capital gains, but may also include qualified dividends or return of capital.
In October 2012, the Company adopted a dividend reinvestment plan (“DRIP”) that provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. When the Company declares a cash dividend, the Company’s stockholders who have not “opted out” of the DRIP at least three days prior to the dividend payment date will have their cash dividend automatically reinvested into additional shares of the Company’s common stock. The Company has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares are valued based upon the final closing price of the Company’s common stock on a date determined by the Board. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs. See Note 9 for additional information on the Company’s distributions.
Segments
In accordance with ASC Topic 280 — – Segment Reporting, the Company has determined that it has a single reporting segment and operating unit structure.
Cash
The Company deposits its cash in a financial institution and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits.
Restricted Cash
Restricted cash includesincluded amounts held within MRCC SBIC. Cash held within an SBIC is generally restricted to the originations of new loans from the SBIC and the payment of SBA debentures and related interest expense.
Unamortized Deferred Financing Costs
Deferred financing costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. As of SeptemberJune 30, 20212022 and December 31, 2020,2021, the Company had unamortized deferred financing costs of $6,318$3,743 and $7,052$5,794 respectively, presented as a direct reduction of the carrying amount of debt on the consolidated statements of assets and liabilities. These amounts are amortized and included in interest and other debt financing expenses on the consolidated statements of operations over the estimated average life of the borrowings. Amortization of deferred financing costs for the three and ninesix months ended SeptemberJune 30, 20212022 was $539$490 and $1,677,$1,091, respectively. Amortization of deferred financing costs for the three and ninesix months ended SeptemberJune 30, 20202021 was $582$537 and $1,586,$1,138, respectively.
Offering Costs
Offering costs include, among other things, fees paid in relation to legal, accounting, regulatory and printing work completed in preparation of debt and equity offerings. Offering costs from equity offerings are charged against the proceeds from the offering within the consolidated statements of changes in net assets. Offering costs from debt offerings are reclassified to unamortized deferred financing costs on the consolidated statements of assets and liabilities as noted above. As of SeptemberJune 30, 20212022 and December 31, 2020,2021, other assets on the consolidated statements of assets and liabilities included $137$182 and $562, respectively,$123 of deferred offering costs, respectively, which will be charged against the proceeds from future debt or equity offerings when completed.
Investments Denominated in Foreign Currency
As of SeptemberJune 30, 2022, the Company held investments in one portfolio company that was denominated in Australian dollars. As of December 31, 2021, the Company held investments in one portfolio company that was denominated in Great Britain pounds and one portfolio company that was denominated in Australian dollars. As
39
At each balance sheet date, portfolio company investments denominated in foreign currencies are translated into U.S. dollars using the spot exchange rate on the last business day of the period. Purchases and sales of foreign portfolio company investments, and any income from such investments, are translated into U.S. dollars using the rates of exchange prevailing on the respective dates of such transactions.
Although the fair values of foreign portfolio company investments and the fluctuation in such fair values are translated into U.S. dollars using the applicable foreign exchange rates described above, the Company does not isolate the portion of the change in fair value resulting from foreign currency exchange rates fluctuations from the change in fair value of the underlying investment. All fluctuations in fair value are included in net change in unrealized gain (loss) on investments on the Company’s consolidated statements of operations.
Investments denominated in foreign currencies and foreign currency transactions may involve certain consideration and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.
Derivative Instruments
The Company may enter into foreign currency forward contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another, at a pre-determined price at a future date. Foreign currency forward contracts are marked-to-market based on the difference between the forward rate and the exchange rate at the current period end. Unrealized gain (loss) on foreign currency forward contracts are recorded on the Company’s consolidated statements of assets and liabilities by counterparty on a net basis.
The Company does not utilize hedge accounting and as such values its foreign currency forward contracts at fair value with the change in unrealized gain or loss recorded in net change in unrealized gain (loss) on foreign currency forward contracts and the realized gain or loss recorded in net realized gain (loss) on foreign currency forward contracts on the Company’s consolidated statements of operations.
Income Taxes
The Company has elected to be treated as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment available to RICs. To maintain qualification as a RIC, the Company must, among other things, meet certain source-of-income and asset diversification requirements and distribute to stockholders, for each taxable year, at least 90% of the Company’s “investment company taxable income,” which is generally the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses. If the Company qualifies as a RIC and satisfies the annual distribution requirement, the Company will not have to pay corporate-level federal income taxes on any income that the Company distributes to its stockholders. The Company intends to make distributions in an amount sufficient to maintain RIC status each year and to avoid any federal income taxes on income. The Company is also subject to nondeductible federal excise taxes if the Company does not distribute at least 98% of net ordinary income, 98.2% of any capital gain net income, if any, and any recognized and undistributed income from prior years for which it paid no federal income taxes. To the extent that the Company determines that its estimated current year annual taxable income may exceed estimated current year dividend distributions, the Company accrues excise tax, calculated as 4% of the estimated excess taxable income, if any, as taxable income is earned. For the three and ninesix months ended SeptemberJune 30, 2022, the Company recorded a net expense on the consolidated statements of operations of $100 and $119, respectively, for U.S. federal excise tax. For the three and six months ended June 30, 2021, the Company recorded a net expense on the consolidated statements of operations of $68$153 and $251, respectively, for U.S. federal excise tax. For the three and nine months ended September 30, 2020, the Company recorded a net expense on the consolidated statements of operations of $125 and $270,$183, respectively, for U.S. federal excise tax. As of SeptemberJune 30, 20212022 and December 31, 2020,2021, the Company had payablesa payable of $156$26 and $306$183 for excise taxes, respectively, which were included in accounts payable and accrued expenses on the Company’s consolidated statements of assets and liabilities.
The Company’s consolidated Taxable Subsidiaries may be subject to U.S. federal and state corporate-level income taxes. For both the three and ninesix months ended SeptemberJune 30, 2021,2022, the Company recorded a net tax expense of $3$302 on the consolidated statements of operations for these subsidiaries. For the three and ninesix months ended SeptemberJune 30, 2020,2021, the Company recordeddid not record a net tax expense of zero and $2, respectively, on the consolidated statements of operations for these subsidiaries. As of both SeptemberJune 30, 20212022 and December 31, 2020,2021, no payables for corporate-level income taxes were accrued.
40
The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. The Company did not take any material uncertain income tax positions through SeptemberJune 30, 2021.2022. The 20172018 through 20202021 tax years remain subject to examination by U.S. federal and state tax authorities.
Subsequent Events
The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the ninesix months ended SeptemberJune 30, 2021.
2022.
Recent Accounting Pronouncements
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the optional guidance on the Company’s consolidated financial statements and disclosures. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the ninesix months ended SeptemberJune 30, 2021.2022.
Note 3. Investments
The following tables show the composition of the Company’s investment portfolio, at amortized cost and fair value (with corresponding percentage of total portfolio investments):
| | | | | | | | | | | |
| | June 30, 2022 | | December 31, 2021 |
| ||||||
Amortized Cost: | | | | | | | | | | | |
Senior secured loans |
| $ | 412,195 |
| 72.7 | % | $ | 415,600 |
| 72.1 | % |
Unitranche secured loans | |
| 58,752 |
| 10.4 | |
| 70,977 |
| 12.3 | |
Junior secured loans | |
| 20,020 |
| 3.5 | |
| 14,317 |
| 2.5 | |
LLC equity interest in SLF | |
| 42,650 |
| 7.5 | |
| 42,150 |
| 7.3 | |
Equity securities | |
| 33,512 |
| 5.9 | |
| 33,134 |
| 5.8 | |
Total | | $ | 567,129 |
| 100.0 | % | $ | 576,178 |
| 100.0 | % |
| September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||
| Amortized Cost: | |||||||||||||||||||||||||||
| | | | | | | | | | | | ||||||||||||||||
| | June 30, 2022 | | December 31, 2021 |
| ||||||||||||||||||||||
Fair Value: |
| |
|
|
|
| |
|
|
| | ||||||||||||||||
| Senior secured loans | $ | 432,180 | 74.2 | % | $ | 427,173 | 71.7 | % | | $ | 415,244 |
| 77.5 | % | $ | 423,700 |
| 75.4 | % | ||||||||
| Unitranche secured loans | 62,820 | 10.8 | 77,465 | 13.0 | |
| 34,114 |
| 6.3 | |
| 51,494 |
| 9.2 | | ||||||||||||
| Junior secured loans | 9,311 | 1.6 | 14,763 | 2.4 | |
| 19,745 |
| 3.7 | |
| 14,364 |
| 2.6 | | ||||||||||||
| LLC equity interest in SLF | 42,150 | 7.2 | 42,150 | 7.1 | |
| 37,551 |
| 7.0 | |
| 41,125 |
| 7.3 | | ||||||||||||
| Equity securities | 36,367 | 6.2 | 34,552 | 5.8 | |
| 29,385 |
| 5.5 | |
| 31,010 |
| 5.5 | | ||||||||||||
| Total | $ | 582,828 | 100.0 | % | $ | 596,103 | 100.0 | % | | $ | 536,039 |
| 100.0 | % | $ | 561,693 |
| 100.0 | % | ||||||||
| September 30, 2021 | December 31, 2020 | |||||||||||||||
| Fair Value: | ||||||||||||||||
| Senior secured loans | $ | 425,055 | 76.8 | % | $ | 405,224 | 74.1 | % | ||||||||
| Unitranche secured loans | 44,420 | 8.0 | 64,040 | 11.7 | ||||||||||||
| Junior secured loans | 9,181 | 1.6 | 14,592 | 2.6 | ||||||||||||
| LLC equity interest in SLF | 41,331 | 7.5 | 39,284 | 7.2 | ||||||||||||
| Equity securities | 33,757 | 6.1 | 23,899 | 4.4 | ||||||||||||
| Total | $ | 553,744 | 100.0 | % | $ | 547,039 | 100.0 | % | ||||||||
41
The following tables show the composition of the Company’s investment portfolio by geographic region, at amortized cost and fair value (with corresponding percentage of total portfolio investments). The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business:
| September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||
| | | | | | | | | | | | ||||||||||||||||
| | June 30, 2022 | | December 31, 2021 |
| ||||||||||||||||||||||
| Amortized Cost: |
| |
|
|
|
| |
|
|
| | ||||||||||||||||
| International | $ | 11,860 | 2.0 | % | $ | 19,276 | 3.2 | % | | $ | 11,860 |
| 2.1 | % | $ | 11,860 |
| 2.0 | % | ||||||||
| Midwest | 133,202 | 22.9 | 149,468 | 25.1 | |
| 144,765 |
| 25.5 | |
| 145,023 |
| 25.2 | | ||||||||||||
| Northeast | 114,791 | 19.7 | 139,553 | 23.4 | |
| 92,162 |
| 16.3 | |
| 107,828 |
| 18.7 | | ||||||||||||
| Southeast | 167,796 | 28.8 | 142,721 | 24.0 | |
| 168,095 |
| 29.6 | |
| 164,100 |
| 28.5 | | ||||||||||||
| Southwest | 38,745 | 6.6 | 23,857 | 4.0 | |
| 33,881 |
| 6.0 | |
| 40,121 |
| 7.0 | | ||||||||||||
| West | 116,434 | 20.0 | 121,228 | 20.3 | |
| 116,366 |
| 20.5 | |
| 107,246 |
| 18.6 | | ||||||||||||
| Total | $ | 582,828 | 100.0 | % | $ | 596,103 | 100.0 | % | | $ | 567,129 |
| 100.0 | % | $ | 576,178 |
| 100.0 | % | ||||||||
| September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||
| | | | | | | | | | | | ||||||||||||||||
| | June 30, 2022 | | December 31, 2021 |
| ||||||||||||||||||||||
| Fair Value: |
| |
|
|
|
| |
|
|
| | ||||||||||||||||
| International | $ | 11,034 | 2.0 | % | $ | 20,008 | 3.7 | % | | $ | 10,543 |
| 2.0 | % | $ | 11,093 |
| 2.0 | % | ||||||||
| Midwest | 130,740 | 23.6 | 144,261 | 26.4 | |
| 136,302 |
| 25.4 | |
| 143,435 |
| 25.5 | | ||||||||||||
| Northeast | 112,751 | 20.4 | 123,349 | 22.5 | |
| 97,781 |
| 18.2 | |
| 112,175 |
| 20.0 | | ||||||||||||
| Southeast | 164,476 | 29.7 | 138,406 | 25.3 | |
| 163,347 |
| 30.5 | |
| 159,807 |
| 28.4 | | ||||||||||||
| Southwest | 41,867 | 7.5 | 25,557 | 4.7 | |
| 35,324 |
| 6.6 | |
| 44,380 |
| 7.9 | | ||||||||||||
| West | 92,876 | 16.8 | 95,458 | 17.4 | |
| 92,742 |
| 17.3 | |
| 90,803 |
| 16.2 | | ||||||||||||
| Total | $ | 553,744 | 100.0 | % | $ | 547,039 | 100.0 | % | | $ | 536,039 |
| 100.0 | % | $ | 561,693 |
| 100.0 | % | ||||||||
42
The following tables show the composition of the Company’s investment portfolio by industry, at amortized cost and fair value (with corresponding percentage of total portfolio investments):
| | | | | | | | | | | |
| | June 30, 2022 | | December 31, 2021 |
| ||||||
Amortized Cost: | | | | | | | | | | | |
Aerospace & Defense |
| $ | 7,805 |
| 1.4 | % | $ | 7,828 |
| 1.4 | % |
Automotive | |
| 19,823 |
| 3.5 | |
| 21,162 |
| 3.7 | |
Banking | |
| 13,751 |
| 2.4 | |
| 5,416 |
| 1.0 | |
Beverage, Food & Tobacco | |
| 17,295 |
| 3.0 | |
| 21,036 |
| 3.7 | |
Capital Equipment | |
| 13,700 |
| 2.4 | |
| 12,656 |
| 2.2 | |
Chemicals, Plastics & Rubber | |
| 3,428 |
| 0.6 | |
| 9,426 |
| 1.6 | |
Construction & Building | |
| 17,089 |
| 3.0 | |
| 16,450 |
| 2.9 | |
Consumer Goods: Durable | |
| 9,461 |
| 1.7 | |
| 9,536 |
| 1.7 | |
Consumer Goods: Non-Durable | |
| 28,276 |
| 5.0 | |
| 28,232 |
| 4.9 | |
Environmental Industries | |
| 6,186 |
| 1.1 | |
| 17,103 |
| 3.0 | |
FIRE: Finance | |
| 16,578 |
| 2.9 | |
| 16,264 |
| 2.8 | |
FIRE: Real Estate | |
| 77,517 |
| 13.7 | |
| 72,826 |
| 12.6 | |
Healthcare & Pharmaceuticals | |
| 60,242 |
| 10.6 | |
| 52,743 |
| 9.2 | |
High Tech Industries | |
| 46,597 |
| 8.2 | |
| 52,710 |
| 9.1 | |
Hotels, Gaming & Leisure | |
| 2,668 |
| 0.5 | |
| 2,662 |
| 0.5 | |
Investment Funds & Vehicles | |
| 42,650 |
| 7.5 | |
| 42,150 |
| 7.3 | |
Media: Advertising, Printing & Publishing | |
| 12,941 |
| 2.3 | |
| 13,421 |
| 2.3 | |
Media: Broadcasting & Subscription | |
| 2,601 |
| 0.5 | |
| 2,472 |
| 0.4 | |
Media: Diversified & Production | |
| 27,437 |
| 4.8 | |
| 23,853 |
| 4.1 | |
Retail | |
| 10,171 |
| 1.8 | |
| 10,954 |
| 1.9 | |
Services: Business | |
| 55,045 |
| 9.7 | |
| 69,292 |
| 12.0 | |
Services: Consumer | |
| 50,829 |
| 9.0 | |
| 46,284 |
| 8.0 | |
Telecommunications | |
| 9,041 |
| 1.6 | |
| 5,892 |
| 1.0 | |
Wholesale | |
| 15,998 |
| 2.8 | |
| 15,810 |
| 2.7 | |
Total | | $ | 567,129 |
| 100.0 | % | $ | 576,178 |
| 100.0 | % |
| September 30, 2021 | December 31, 2020 | |||||||||||||||
| Amortized Cost: | ||||||||||||||||
| Aerospace & Defense | $ | 7,842 | 1.4 | % | $ | — | — | % | ||||||||
| Automotive | 21,196 | 3.6 | 9,495 | 1.6 | ||||||||||||
| Banking, Finance, Insurance & Real Estate | 84,983 | 14.6 | 70,779 | 11.9 | ||||||||||||
| Beverage, Food & Tobacco | 21,032 | 3.6 | 26,308 | 4.4 | ||||||||||||
| Capital Equipment | 9,707 | 1.7 | 13,603 | 2.3 | ||||||||||||
| Chemicals, Plastics & Rubber | 10,405 | 1.8 | 28,723 | 4.8 | ||||||||||||
| Construction & Building | 13,658 | 2.4 | 16,651 | 2.8 | ||||||||||||
| Consumer Goods: Durable | 15,276 | 2.6 | 24,410 | 4.1 | ||||||||||||
| Consumer Goods: Non-Durable | 28,241 | 4.9 | 26,030 | 4.3 | ||||||||||||
| Containers, Packaging & Glass | — | — | 4,926 | 0.8 | ||||||||||||
| Environmental Industries | 12,244 | 2.1 | 12,996 | 2.2 | ||||||||||||
| Healthcare & Pharmaceuticals | 59,578 | 10.2 | 42,857 | 7.2 | ||||||||||||
| High Tech Industries | 61,122 | 10.5 | 81,845 | 13.7 | ||||||||||||
| Hotels, Gaming & Leisure | 2,582 | 0.4 | 1,771 | 0.3 | ||||||||||||
| Investment Funds & Vehicles | 42,150 | 7.2 | 42,150 | 7.1 | ||||||||||||
| Media: Advertising, Printing & Publishing | 15,750 | 2.7 | 30,764 | 5.1 | ||||||||||||
| Media: Broadcasting & Subscription | 2,422 | 0.4 | 2,190 | 0.4 | ||||||||||||
| Media: Diversified & Production | 17,721 | 3.0 | 6,707 | 1.1 | ||||||||||||
| Retail | 23,333 | 4.0 | 32,017 | 5.4 | ||||||||||||
| Services: Business | 72,513 | 12.4 | 79,768 | 13.4 | ||||||||||||
| Services: Consumer | 41,041 | 7.0 | 29,697 | 5.0 | ||||||||||||
| Telecommunications | 4,420 | 0.8 | 1,100 | 0.2 | ||||||||||||
| Wholesale | 15,612 | 2.7 | 11,316 | 1.9 | ||||||||||||
| Total | $ | 582,828 | 100.0 | % | $ | 596,103 | 100.0 | % | ||||||||
43
| September 30, 2021 | December 31, 2020 | |||||||||||||||
| Fair Value: | ||||||||||||||||
| Aerospace & Defense | $ | 7,840 | 1.4 | % | $ | — | — | % | ||||||||
| Automotive | 21,612 | 3.9 | 9,637 | 1.8 | ||||||||||||
| Banking, Finance, Insurance & Real Estate | 88,401 | 16.0 | 72,627 | 13.3 | ||||||||||||
| Beverage, Food & Tobacco | 20,123 | 3.6 | 20,676 | 3.8 | ||||||||||||
| Capital Equipment | 9,867 | 1.8 | 13,750 | 2.5 | ||||||||||||
| Chemicals, Plastics & Rubber | 10,354 | 1.9 | 27,754 | 5.1 | ||||||||||||
| Construction & Building | 13,831 | 2.5 | 16,809 | 3.0 | ||||||||||||
| Consumer Goods: Durable | 9,743 | 1.8 | 18,893 | 3.4 | ||||||||||||
| Consumer Goods: Non-Durable | 9,661 | 1.7 | 13,027 | 2.4 | ||||||||||||
| Containers, Packaging & Glass | — | — | 4,997 | 0.9 | ||||||||||||
| Environmental Industries | 12,543 | 2.3 | 13,168 | 2.4 | ||||||||||||
| Healthcare & Pharmaceuticals | 54,596 | 9.9 | 37,815 | 6.9 | ||||||||||||
| High Tech Industries | 60,317 | 10.9 | 81,417 | 14.9 | ||||||||||||
| Hotels, Gaming & Leisure | 2,629 | 0.5 | 1,771 | 0.3 | ||||||||||||
| Investment Funds & Vehicles | 41,332 | 7.5 | 39,284 | 7.2 | ||||||||||||
| Media: Advertising, Printing & Publishing | 19,603 | 3.5 | 31,553 | 5.8 | ||||||||||||
| Media: Broadcasting & Subscription | 2,429 | 0.4 | 2,227 | 0.4 | ||||||||||||
| Media: Diversified & Production | 17,985 | 3.2 | 6,811 | 1.2 | ||||||||||||
| Retail | 22,259 | 4.0 | 18,443 | 3.4 | ||||||||||||
| Services: Business | 73,411 | 13.3 | 78,584 | 14.4 | ||||||||||||
| Services: Consumer | 35,034 | 6.3 | 25,306 | 4.6 | ||||||||||||
| Telecommunications | 4,514 | 0.8 | 1,100 | 0.2 | ||||||||||||
| Wholesale | 15,660 | 2.8 | 11,390 | 2.1 | ||||||||||||
| Total | $ | 553,744 | 100.0 | % | $ | 547,039 | 100.0 | % | ||||||||
| | | | | | | | | | | |
| | June 30, 2022 | | December 31, 2021 |
| ||||||
Fair Value: | | | | | | | | | | | |
Aerospace & Defense |
| $ | 7,873 |
| 1.5 | % | $ | 7,972 |
| 1.4 | % |
Automotive | |
| 20,074 |
| 3.8 | |
| 21,556 |
| 3.8 | |
Banking | |
| 15,230 |
| 2.8 | |
| 6,712 |
| 1.2 | |
Beverage, Food & Tobacco | |
| 13,997 |
| 2.6 | |
| 19,133 |
| 3.4 | |
Capital Equipment | |
| 13,914 |
| 2.6 | |
| 12,839 |
| 2.3 | |
Chemicals, Plastics & Rubber | |
| 4,530 |
| 0.8 | |
| 10,163 |
| 1.8 | |
Construction & Building | |
| 17,288 |
| 3.2 | |
| 16,636 |
| 3.0 | |
Consumer Goods: Durable | |
| 9,592 |
| 1.8 | |
| 9,734 |
| 1.7 | |
Consumer Goods: Non-Durable | |
| 3,531 |
| 0.7 | |
| 8,460 |
| 1.5 | |
Environmental Industries | |
| 6,328 |
| 1.2 | |
| 17,693 |
| 3.2 | |
FIRE: Finance | |
| 15,554 |
| 2.9 | |
| 15,681 |
| 2.8 | |
FIRE: Real Estate | |
| 78,839 |
| 14.7 | |
| 76,698 |
| 13.6 | |
Healthcare & Pharmaceuticals | |
| 60,218 |
| 11.2 | |
| 53,179 |
| 9.5 | |
High Tech Industries | |
| 47,628 |
| 8.9 | |
| 54,085 |
| 9.6 | |
Hotels, Gaming & Leisure | |
| 2,658 |
| 0.5 | |
| 2,706 |
| 0.5 | |
Investment Funds & Vehicles | |
| 37,551 |
| 7.0 | |
| 41,125 |
| 7.3 | |
Media: Advertising, Printing & Publishing | |
| 15,401 |
| 2.9 | |
| 16,794 |
| 3.0 | |
Media: Broadcasting & Subscription | |
| 2,594 |
| 0.5 | |
| 2,477 |
| 0.5 | |
Media: Diversified & Production | |
| 27,577 |
| 5.1 | |
| 24,220 |
| 4.3 | |
Retail | |
| 10,721 |
| 2.0 | |
| 11,478 |
| 2.0 | |
Services: Business | |
| 57,439 |
| 10.7 | |
| 71,540 |
| 12.7 | |
Services: Consumer | |
| 43,524 |
| 8.1 | |
| 39,248 |
| 7.0 | |
Telecommunications | |
| 9,143 |
| 1.7 | |
| 5,988 |
| 1.1 | |
Wholesale | |
| 14,835 |
| 2.8 | |
| 15,576 |
| 2.8 | |
Total | | $ | 536,039 |
| 100.0 | % | $ | 561,693 |
| 100.0 | % |
MRCC Senior Loan Fund I, LLC
The Company co-invests with Life Insurance Company of the Southwest (“LSW”) in senior secured loans through SLF, an unconsolidated Delaware LLC. SLF is capitalized as underlying investment transactions are completed, taking into account available debt and equity commitments available for funding these investments. All portfolio and investment decisions in respect to SLF must be approved by the SLF investment committee, consisting of one representative from the Company and one representative from LSW. SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business. Investments held by SLF are measured at fair value using the same valuation methodologies as described in Note 4. The Company’s investment is illiquid in nature as SLF does not allow for withdrawal from the LLC or the sale of a member’s interest unless approved by the board members of SLF. The full withdrawal of a member would result in an orderly wind-down of SLF.
SLF’s profits and losses are allocated to the Company and LSW in accordance with their respective ownership interests. As of both SeptemberJune 30, 20212022 and December 31, 2020,2021, the Company and LSW each owned 50.0% of the LLC equity interests of SLF. As of both SeptemberJune 30, 20212022 and December 31, 2020,2021, SLF had $100,000 in equity commitments from its members (in the aggregate), of which $85,300 and $84,300 was funded.
funded, respectively.
As of both SeptemberJune 30, 20212022 and December 31, 2020,2021, the Company had committed to fund $50,000 of LLC equity interest subscriptions to SLF. As of both SeptemberJune 30, 20212022 and December 31, 2020,2021, $42,650 and $42,150 of the Company’s LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall.
recall, respectively.
For the three and ninesix months ended SeptemberJune 30, 2021,2022, the Company received $1,025$900 and $3,300$1,800 of dividend income from its LLC equity interest in SLF, respectively. For the three and ninesix months ended SeptemberJune 30, 2020,2021, the Company received $1,100$1,075 and $3,150$2,275 of dividend income from its LLC equity interest in SLF, respectively.
44
SLF has a senior secured revolving credit facility (as amended, the “SLF Credit Facility”) with Capital One, N.A., through its wholly-owned subsidiary MRCC Senior Loan Fund I Financing SPV, LLC (“SLF SPV”), which as of September 30, 2021, allowed. The SLF Credit Facility allows SLF SPV to borrow up to $170,000 at any one time,$175,000, subject to leverage and borrowing base restrictions. Borrowings underon the SLF Credit Facility bear interest at an annual rate of LIBOR (three-month) plus 2.25%2.10%. The maturity date on the SLF Credit Facility is March 22, 2023.
SLF does not pay any fees to MC Advisors or its affiliates; however, SLF has entered into an administration agreement with Monroe Capital Management Advisors, LLC (“MC Management”), pursuant to which certain loan servicing and administrative functions are delegated to MC Management. SLF may reimburse MC Management for its allocable share of overhead and other expenses incurred by MC Management. For the three and ninesix months ended SeptemberJune 30, 2022, SLF incurred $59 and $110 of allocable expenses, respectively. For the three and six months ended June 30, 2021, SLF incurred $51$50 and $159, respectively,$108 of allocable expenses. For the three and nine months ended September 30, 2020, SLF incurred $51 and $157, respectively, of allocable expenses.expenses, respectively. There are no agreements or understandings by which the Company guarantees any SLF obligations.
As of SeptemberJune 30, 20212022 and December 31, 2020,2021, SLF had total assets at fair value of $196,632$203,555 and $209,666,$194,623, respectively. As of SeptemberJune 30, 2021 and2022, SLF had two portfolio company investments on non-accrual status with a fair value of $2,612. As of December 31, 2020,2021, SLF had one portfolio company investment on non-accrual status with a fair value of $1,054 and $1,031, respectively.$1,072. The portfolio companies in SLF are in industries and geographies similar to those in which the Company may invest directly. Additionally, as of SeptemberJune 30, 20212022 and December 31, 2020,2021, SLF had $408$4,960 and $839,$2,061, respectively, in outstanding commitments to fund investments under undrawn revolvers and delayed draw commitments.
Below is a summary of SLF’s portfolio, followed by a listing of the individual investments in SLF’s portfolio as of SeptemberJune 30, 20212022 and December 31, 2020:2021:
| As of | ||||||||
September 30, 2021 | December 31, 2020 | |||||||
| Senior secured loans (1) | 196,230 | 214,389 | ||||||
| Weighted average current interest rate on senior secured loans (2) | 5.8 | % | 5.8 | % | ||||
| Number of borrowers in SLF | 54 | 57 | ||||||
| Largest portfolio company investment (1) | 6,737 | 6,790 | ||||||
| Total of five largest portfolio company investments (1) | 28,118 | 27,064 | ||||||
| | | | | |
| | As of |
| ||
| | June 30, 2022 | | December 31, 2021 |
|
Senior secured loans (1) |
| 207,803 |
| 193,062 | |
Weighted average current interest rate on senior secured loans (2) |
| 7.1 | % | 5.9 | % |
Number of portfolio company investments in SLF |
| 62 |
| 57 | |
Largest portfolio company investment (1) |
| 6,685 |
| 6,720 | |
Total of five largest portfolio company investments (1) |
| 26,996 |
| 27,074 | |
| (1) | Represents outstanding principal amount, excluding unfunded commitments. |
| (2) | Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at outstanding principal amount. |
MRCC SENIOR LOAN FUND I, LLC
CONSOLIDATED SCHEDULE OF INVESTMENTS
(unaudited)
September 30, 2021
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate (b) | Maturity | Principal | Fair Value | |||||||||||||||
| Non-Controlled/Non-Affiliate Company Investments | ||||||||||||||||||||
| Senior Secured Loans | ||||||||||||||||||||
| Aerospace & Defense | ||||||||||||||||||||
| Bromford Industries Limited (c) | L+5.25% | 6.25 | % | 11/5/2025 | 2,751 | $ | 2,695 | |||||||||||||
| Bromford Industries Limited (c) | L+5.25% | 6.25 | % | 11/5/2025 | 1,834 | 1,796 | ||||||||||||||
| Trident Maritime SH, Inc. | L+5.50% | 6.50 | % | 2/26/2027 | 2,473 | 2,483 | ||||||||||||||
| Trident Maritime SH, Inc. (Revolver) (d) | L+5.50% | 6.50 | % | 2/26/2027 | 265 | 37 | ||||||||||||||
| 7,323 | 7,011 | |||||||||||||||||||
| Automotive | ||||||||||||||||||||
| Truck-Lite Co., LLC | L+6.25% | 7.25 | % | 12/14/2026 | 1,713 | 1,723 | ||||||||||||||
| Truck-Lite Co., LLC | L+6.25% | 7.25 | % | 12/14/2026 | 254 | 255 | ||||||||||||||
| Wheel Pros, Inc. | L+4.50% | 5.25 | % | 5/11/2028 | 1,957 | 1,957 | ||||||||||||||
| 3,924 | 3,935 | |||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||
| Avison Young (USA) Inc. (c) | L+6.00% | 6.13 | % | 1/30/2026 | 4,862 | 4,814 | ||||||||||||||
| Harbour Benefit Holdings, Inc. | L+5.25% | 6.25 | % | 12/13/2024 | 4,617 | 4,557 | ||||||||||||||
| Harbour Benefit Holdings, Inc. | L+5.25% | 6.25 | % | 12/13/2024 | 103 | 101 | ||||||||||||||
| Lightbox Intermediate, L.P. | L+5.00% | 5.13 | % | 5/11/2026 | 4,888 | 4,863 | ||||||||||||||
| Minotaur Acquisition, Inc. (g) | L+4.75% | 4.83 | % | 3/27/2026 | 5,925 | 5,903 | ||||||||||||||
| 20,395 | 20,238 | |||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||
| CBC Restaurant Corp. (f) | n/a | 5.00% PIK | (e) | 12/30/2022 | 1,116 | 1,054 | ||||||||||||||
| SW Ingredients Holdings, LLC | L+4.75% | 5.75 | % | 7/3/2025 | 3,628 | 3,628 | ||||||||||||||
| 4,744 | 4,682 | |||||||||||||||||||
| Capital Equipment | ||||||||||||||||||||
| Analogic Corporation | L+5.25% | 6.25 | % | 6/24/2024 | 4,764 | 4,582 | ||||||||||||||
| 4,764 | 4,582 | |||||||||||||||||||
| Chemicals, Plastics & Rubber | ||||||||||||||||||||
| Polymer Solutions Group | L+7.00% | 8.00 | % | 1/3/2023 | 1,187 | 1,172 | ||||||||||||||
| 1,187 | 1,172 | |||||||||||||||||||
| Construction & Building | ||||||||||||||||||||
| The Cook & Boardman Group LLC | L+5.75% | 6.75 | % | 10/20/2025 | 2,918 | 2,891 | ||||||||||||||
| 2,918 | 2,891 | |||||||||||||||||||
| Consumer Goods: Durable | ||||||||||||||||||||
| International Textile Group, Inc. | L+5.00% | 5.13 | % | 5/1/2024 | 1,723 | 1,664 | ||||||||||||||
| 1,723 | 1,664 | |||||||||||||||||||
| Consumer Goods: Non-Durable | ||||||||||||||||||||
| PH Beauty Holdings III, INC | L+5.00% | 5.12 | % | 9/26/2025 | 2,424 | 2,385 | ||||||||||||||
| 2,424 | 2,385 | |||||||||||||||||||
| Containers, Packaging & Glass | ||||||||||||||||||||
| Liqui-Box Holdings, Inc. | L+4.50% | 5.50 | % | 2/26/2027 | 4,279 | 4,058 | ||||||||||||||
| Polychem Acquisition, LLC | L+5.00% | 5.50 | % | 3/17/2025 | 2,925 | 2,925 | ||||||||||||||
| Port Townsend Holdings Company, Inc. and Crown Corrugated Company | L+6.75% | 5.75% Cash/ 2.00% PIK | 4/3/2024 | 4,751 | 4,300 | |||||||||||||||
| PVHC Holding Corp | L+4.75% | 5.75 | % | 8/5/2024 | 3,225 | 2,983 | ||||||||||||||
| 15,180 | 14,266 | |||||||||||||||||||
| Energy: Oil & Gas | ||||||||||||||||||||
| Drilling Info Holdings, Inc. | L+4.25% | 4.33 | % | 7/30/2025 | 4,528 | 4,471 | ||||||||||||||
| Offen, Inc. | L+5.00% | 5.08 | % | 6/22/2026 | 2,394 | 2,394 | ||||||||||||||
| Offen, Inc. | L+5.00% | 5.08 | % | 6/22/2026 | 878 | 878 | ||||||||||||||
| 7,800 | 7,743 | |||||||||||||||||||
MRCC SENIOR LOAN FUND I, LLC
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
September 30, 2021
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate (b) | Maturity | Principal | Fair Value | |||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||
| Cano Health, LLC (g) | L+4.50% | 5.25 | % | 11/23/2027 | 2,000 | $ | 2,004 | |||||||||||||
| LSCS Holdings, Inc. | L+4.25% | 4.42 | % | 3/17/2025 | 2,281 | 2,259 | ||||||||||||||
| LSCS Holdings, Inc. | L+4.25% | 4.42 | % | 3/17/2025 | 589 | 583 | ||||||||||||||
| Radiology Partners, Inc. | L+4.25% | 4.33 | % | 7/9/2025 | 4,760 | 4,762 | ||||||||||||||
| Team RMS, LLC (g) | L+5.00% | 6.00 | % | 12/17/2027 | 3,000 | 3,000 | ||||||||||||||
| 12,630 | 12,608 | |||||||||||||||||||
| High Tech Industries | ||||||||||||||||||||
| Corel Inc. (c) | L+5.00% | 5.12 | % | 7/2/2026 | 3,825 | 3,842 | ||||||||||||||
| LW Buyer, LLC | L+5.00% | 5.08 | % | 12/30/2024 | 4,888 | 4,863 | ||||||||||||||
| TGG TS Acquisition Company | L+6.50% | 6.58 | % | 12/12/2025 | 3,496 | 3,508 | ||||||||||||||
| 12,209 | 12,213 | |||||||||||||||||||
| Hotels, Gaming & Leisure | ||||||||||||||||||||
| Excel Fitness Holdings, Inc. | L+5.25% | 6.25 | % | 10/7/2025 | 4,176 | 4,134 | ||||||||||||||
| North Haven Spartan US Holdco, LLC | L+5.00% | 6.00 | % | 6/6/2025 | 2,303 | 2,003 | ||||||||||||||
| Tait LLC | L+5.00% | 5.14 | % | 3/28/2025 | 4,136 | 3,732 | ||||||||||||||
| Tait LLC (Revolver) | P+4.00% | 7.25 | % | 3/28/2025 | 769 | 725 | ||||||||||||||
| 11,384 | 10,594 | |||||||||||||||||||
| Media: Advertising, Printing & Publishing | ||||||||||||||||||||
| Cadent, LLC | L+5.00% | 6.00 | % | 9/11/2023 | 4,339 | 4,328 | ||||||||||||||
| Cadent, LLC (Revolver) (d) | L+5.00% | 6.00 | % | 9/11/2023 | 167 | — | ||||||||||||||
| Digital Room Holdings, Inc. | L+5.00% | 5.08 | % | 5/21/2026 | 4,329 | 4,303 | ||||||||||||||
| Monotype Imaging Holdings Inc. | L+5.50% | 6.50 | % | 10/9/2026 | 4,813 | 4,817 | ||||||||||||||
| 13,648 | 13,448 | |||||||||||||||||||
| Media: Diversified & Production | ||||||||||||||||||||
| Research Now Group, Inc. and Survey Sampling International, LLC | L+5.50% | 6.50 | % | 12/20/2024 | 6,737 | 6,675 | ||||||||||||||
| STATS Intermediate Holdings, LLC | L+5.25% | 5.37 | % | 7/10/2026 | 4,913 | 4,909 | ||||||||||||||
| The Octave Music Group, Inc. | L+6.00% | 6.25% Cash/ 0.75% PIK | 5/29/2025 | 4,440 | 4,418 | |||||||||||||||
| 16,090 | 16,002 | |||||||||||||||||||
| Services: Business | ||||||||||||||||||||
| AQ Carver Buyer, Inc. | L+5.00% | 6.00 | % | 9/23/2025 | 4,900 | 4,912 | ||||||||||||||
| CHA Holdings, Inc | L+4.50% | 5.50 | % | 4/10/2025 | 1,985 | 1,983 | ||||||||||||||
| CHA Holdings, Inc | L+4.50% | 5.50 | % | 4/10/2025 | 419 | 418 | ||||||||||||||
| Eliassen Group LLC | L+4.25% | 4.33 | % | 11/5/2024 | 3,006 | 2,987 | ||||||||||||||
| Engage2Excel, Inc. | L+7.25% | 7.00% Cash/ 1.25% PIK | 3/7/2023 | 4,319 | 4,330 | |||||||||||||||
| Engage2Excel, Inc. | L+7.25% | 7.00% Cash/ 1.25% PIK | 3/7/2023 | 779 | 781 | |||||||||||||||
| Engage2Excel, Inc. (Revolver) (d) | L+7.25% | 7.00% Cash/ 1.25% PIK | 3/7/2023 | 553 | 539 | |||||||||||||||
| Legility, LLC | L+6.00% | 7.00 | % | 12/17/2025 | 4,800 | 4,747 | ||||||||||||||
| Orbit Purchaser LLC | L+4.50% | 5.50 | % | 10/21/2024 | 2,438 | 2,431 | ||||||||||||||
| Orbit Purchaser LLC | L+4.50% | 5.50 | % | 10/21/2024 | 1,882 | 1,878 | ||||||||||||||
| Orbit Purchaser LLC | L+4.50% | 5.50 | % | 10/21/2024 | 550 | 549 | ||||||||||||||
| Output Services Group, Inc. | L+4.50% | 5.50 | % | 3/27/2024 | 4,827 | 4,167 | ||||||||||||||
| SIRVA Worldwide Inc. | L+5.50% | 5.58 | % | 8/4/2025 | 1,863 | 1,761 | ||||||||||||||
| Teneo Holdings LLC | L+5.25% | 6.25 | % | 7/11/2025 | 4,900 | 4,889 | ||||||||||||||
| The Kleinfelder Group, Inc. | L+5.25% | 6.25 | % | 11/29/2024 | 2,393 | 2,393 | ||||||||||||||
| 39,614 | 38,765 | |||||||||||||||||||
| Telecommunications | ||||||||||||||||||||
| Intermedia Holdings, Inc. | L+6.00% | 7.00 | % | 7/21/2025 | 1,783 | 1,784 | ||||||||||||||
| Mavenir Systems, Inc. | L+4.75% | 5.25 | % | 8/18/2028 | 1,667 | 1,673 | ||||||||||||||
| Sandvine Corporation (g) | L+4.50% | 4.58 | % | 11/3/2025 | 2,000 | 1,999 | ||||||||||||||
| 5,450 | 5,456 | |||||||||||||||||||
| Utilities: Oil & Gas | ||||||||||||||||||||
| NGS US Finco, LLC | L+4.25% | 5.25 | % | 10/1/2025 | 1,699 | 1,648 | ||||||||||||||
| NGS US Finco, LLC | L+5.25% | 6.25 | % | 10/1/2025 | 248 | 244 | ||||||||||||||
| 1,947 | 1,892 | |||||||||||||||||||
| Wholesale | ||||||||||||||||||||
| BMC Acquisition, Inc. | L+5.25% | 6.25 | % | 12/30/2024 | 4,486 | 4,475 | ||||||||||||||
| HALO Buyer, Inc. | L+4.50% | 5.50 | % | 6/30/2025 | 4,837 | 4,542 | ||||||||||||||
| PT Intermediate Holdings III, LLC | L+5.50% | 6.50 | % | 10/15/2025 | 1,965 | 1,970 | ||||||||||||||
| 11,288 | 10,987 | |||||||||||||||||||
| TOTAL INVESTMENTS | $ | 192,534 | ||||||||||||||||||
45
MRCC SENIOR LOAN FUND I, LLC
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020(unaudited)
June 30, 2022
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate (b) | Maturity | Principal | Fair Value | |||||||||||||||
| Non-Controlled/Non-Affiliate Company Investments | ||||||||||||||||||||
| Senior Secured Loans | ||||||||||||||||||||
| Aerospace & Defense | ||||||||||||||||||||
| Bromford Industries Limited (c) | L+5.25 | % | 6.25 | % | 11/5/2025 | 2,772 | $ | 2,685 | ||||||||||||
| Bromford Industries Limited (c) | L+5.25 | % | 6.25 | % | 11/5/2025 | 1,848 | 1,790 | |||||||||||||
| Trident Maritime SH, Inc. | L+4.75 | % | 5.75 | % | 6/4/2024 | 4,401 | 4,363 | |||||||||||||
| Trident Maritime SH, Inc. (Revolver) (d) | L+4.75 | % | 5.75 | % | 6/4/2024 | 340 | — | |||||||||||||
| 9,361 | 8,838 | |||||||||||||||||||
| Automotive | ||||||||||||||||||||
| Truck-Lite Co., LLC | L+6.25 | % | 7.25 | % | 12/14/2026 | 1,726 | 1,716 | |||||||||||||
| Truck-Lite Co., LLC | L+6.25 | % | 7.25 | % | 12/14/2026 | 256 | 254 | |||||||||||||
| Wheel Pros, Inc. | L+5.25 | % | 6.25 | % | 11/10/2027 | 3,000 | 2,961 | |||||||||||||
| 4,982 | 4,931 | |||||||||||||||||||
| Banking, Finance, Insurance & Real Estate | ||||||||||||||||||||
| Avison Young (USA), Inc. (c) | L+5.00 | % | 5.25 | % | 1/30/2026 | 4,900 | 4,659 | |||||||||||||
| Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.) | L+5.25 | % | 6.25 | % | 12/13/2024 | 4,653 | 4,585 | |||||||||||||
| Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.) (Delayed Draw) (d) | L+5.25 | % | 6.25 | % | 12/13/2024 | 264 | 102 | |||||||||||||
| Lightbox Intermediate, L.P. | L+5.00 | % | 5.15 | % | 5/11/2026 | 4,925 | 4,777 | |||||||||||||
| Minotaur Acquisition, Inc. | L+5.00 | % | 5.15 | % | 3/27/2026 | 2,947 | 2,900 | |||||||||||||
| 17,689 | 17,023 | |||||||||||||||||||
| Beverage, Food & Tobacco | ||||||||||||||||||||
| CBC Restaurant Corp. | n/a | 5.00% PIK | (e) | 4/28/2022 | 1,117 | 1,031 | ||||||||||||||
| SW Ingredients Holdings, LLC | L+4.00 | % | 5.00 | % | 7/3/2025 | 3,656 | 3,647 | |||||||||||||
| 4,773 | 4,678 | |||||||||||||||||||
| Capital Equipment | ||||||||||||||||||||
| Analogic Corporation | L+5.25 | % | 6.25 | % | 6/24/2024 | 4,800 | 4,800 | |||||||||||||
| 4,800 | 4,800 | |||||||||||||||||||
| Chemicals, Plastics & Rubber | ||||||||||||||||||||
| Polymer Solutions Group | L+7.00 | % | 8.00 | % | 6/30/2021 | 1,216 | 1,189 | |||||||||||||
| 1,216 | 1,189 | |||||||||||||||||||
| Construction & Building | ||||||||||||||||||||
| ISC Purchaser, LLC | L+4.00 | % | 5.00 | % | 7/11/2025 | 4,937 | 4,896 | |||||||||||||
| The Cook & Boardman Group, LLC | L+5.75 | % | 6.75 | % | 10/20/2025 | 2,940 | 2,811 | |||||||||||||
| 7,877 | 7,707 | |||||||||||||||||||
| Consumer Goods: Durable | ||||||||||||||||||||
| International Textile Group, Inc. | L+5.00 | % | 5.37 | % | 5/1/2024 | 1,758 | 1,597 | |||||||||||||
| 1,758 | 1,597 | |||||||||||||||||||
| Consumer Goods: Non-Durable | ||||||||||||||||||||
| PH Beauty Holdings III, Inc. | L+5.00 | % | 5.23 | % | 9/26/2025 | 2,442 | 2,149 | |||||||||||||
| 2,442 | 2,149 | |||||||||||||||||||
| Containers, Packaging & Glass | ||||||||||||||||||||
| Liqui-Box Holdings, Inc. | L+4.50 | % | 5.50 | % | 2/26/2027 | 4,312 | 3,848 | |||||||||||||
| Polychem Acquisition, LLC | L+5.00 | % | 5.15 | % | 3/17/2025 | 2,948 | 2,948 | |||||||||||||
| Port Townsend Holdings Company, Inc. | L+6.75 | % | 5.75% Cash/ 2.00% PIK | 4/3/2024 | 4,683 | 4,263 | ||||||||||||||
| PVHC Holding Corp. | L+4.75 | % | 5.75 | % | 8/5/2024 | 3,250 | 2,844 | |||||||||||||
| 15,193 | 13,903 | |||||||||||||||||||
| Energy: Oil & Gas | ||||||||||||||||||||
| Drilling Info Holdings, Inc. | L+4.25 | % | 4.40 | % | 7/30/2025 | 4,563 | 4,429 | |||||||||||||
| Offen, Inc. | L+5.00 | % | 5.15 | % | 6/22/2026 | 2,412 | 2,343 | |||||||||||||
| Offen, Inc. | L+5.00 | % | 5.15 | % | 6/22/2026 | 885 | 860 | |||||||||||||
| 7,860 | 7,632 | |||||||||||||||||||
| Healthcare & Pharmaceuticals | ||||||||||||||||||||
| LSCS Holdings, Inc. | L+4.25 | % | 4.51 | % | 3/17/2025 | 2,299 | 2,253 | |||||||||||||
| LSCS Holdings, Inc. | L+4.25 | % | 4.51 | % | 3/17/2025 | 593 | 582 | |||||||||||||
| Radiology Partners, Inc. | L+4.25 | % | 4.40 | % | 7/9/2025 | 4,760 | 4,692 | |||||||||||||
| 7,652 | 7,527 | |||||||||||||||||||
| | | | | | | | | | | | |
|
| Spread Above | | | | | | | | | | |
Portfolio Company (a) | | Index (b) |
| Interest Rate (b) |
| Maturity |
| Principal |
| Fair Value | ||
Non-Controlled/Non-Affiliate Company Investments | | | | | | | | | | | |
|
Senior Secured Loans | | | | | | | | | | | | |
Aerospace & Defense | | | | | | | | | | | | |
Bromford Industries Limited (c) |
| P+5.25 | % | 10.00 | % | 11/5/2025 | | | 2,744 |
| $ | 2,597 |
Bromford Industries Limited (c) |
| P+5.25 | % | 10.00 | % | 11/5/2025 | |
| 1,829 |
| | 1,731 |
Trident Maritime Systems, Inc. |
| L+4.75 | % | 7.00 | % | 2/26/2027 | |
| 2,460 |
| | 2,453 |
Trident Maritime Systems, Inc. |
| L+4.75 | % | 7.00 | % | 2/26/2027 | |
| 746 |
| | 744 |
Trident Maritime Systems, Inc. (Revolver) (d) |
| L+4.75 | % | 6.35 | % | 2/26/2027 | |
| 319 |
| | 258 |
| | |
| |
| | |
| 8,098 |
| | 7,783 |
Automotive | | |
| |
| | | | | | | |
Accelerate Auto Works Intermediate, LLC |
| L+4.75 | % | 6.35 | % | 12/1/2027 | |
| 1,418 |
| | 1,416 |
Accelerate Auto Works Intermediate, LLC (Delayed Draw) (d) |
| L+4.75 | % | 6.35 | % | 12/1/2027 | |
| 388 |
| | — |
Accelerate Auto Works Intermediate, LLC (Revolver) (d) |
| L+4.75 | % | 6.35 | % | 12/1/2027 | |
| 132 |
| | — |
Truck-Lite Co., LLC |
| SF+6.25 | % | 8.93 | % | 12/14/2026 | |
| 1,700 |
| | 1,701 |
Truck-Lite Co., LLC |
| SF+6.25 | % | 8.93 | % | 12/14/2026 | |
| 252 |
| | 252 |
Wheel Pros, Inc. |
| L+4.50 | % | 6.10 | % | 5/11/2028 | |
| 1,942 |
| | 1,617 |
| | | | | | | |
| 5,832 |
| | 4,986 |
Beverage, Food & Tobacco | | | | | | | | | | | | |
CBC Restaurant Corp. |
| n/a |
| 5.00% PIK | (e) | 12/30/2022 | |
| 1,099 |
| | 919 |
SW Ingredients Holdings, LLC |
| L+4.75 | % | 6.42 | % | 7/3/2025 | |
| 3,600 |
| | 3,591 |
| | | | | | | |
| 4,699 |
| | 4,510 |
Capital Equipment | | | | | | | | | | | | |
Analogic Corporation |
| L+5.25 | % | 6.49 | % | 6/24/2024 | |
| 4,727 |
| | 4,544 |
DS Parent, Inc. |
| L+5.75 | % | 8.00 | % | 12/8/2028 | |
| 2,925 |
| | 2,813 |
MacQueen Equipment, LLC |
| L+5.25 | % | 7.50 | % | 1/7/2028 | |
| 2,107 |
| | 2,107 |
MacQueen Equipment, LLC (Delayed Draw) (d) |
| L+5.25 | % | 7.50 | % | 1/7/2028 | |
| 592 |
| | — |
MacQueen Equipment, LLC (Revolver) (d) |
| L+5.25 | % | 6.44 | % | 1/7/2028 | |
| 296 |
| | 99 |
| | |
| | | | |
| 10,647 |
| | 9,563 |
Chemicals, Plastics & Rubber | | |
| | | | | | | | | |
Phoenix Chemical Holding Company LLC (fka Polymer Solutions Group) |
| L+7.00 | % | 8.67 | % | 1/3/2023 | |
| 1,158 |
| | 1,149 |
TJC Spartech Acquisition Corp. |
| L+4.75 | % | 5.87 | % | 5/5/2028 | |
| 4,275 |
| | 4,168 |
| | | | | | | |
| 5,433 |
| | 5,317 |
Construction & Building | | | | | | | | | | | | |
The Cook & Boardman Group LLC |
| SF+5.75 | % | 6.97 | % | 10/20/2025 | |
| 2,894 |
| | 2,779 |
| | | | | | | |
| 2,894 |
| | 2,779 |
Consumer Goods: Durable | | | | | | | | | | | | |
International Textile Group, Inc. |
| L+5.00 | % | 5.97 | % | 5/1/2024 | |
| 1,688 |
| | 1,375 |
Runner Buyer INC. |
| L+5.50 | % | 7.07 | % | 10/23/2028 | |
| 2,993 |
| | 2,342 |
| | | | | | | |
| 4,681 |
| | 3,717 |
Consumer Goods: Non-Durable | | | | | | | | | | | | |
PH Beauty Holdings III, INC. |
| L+5.00 | % | 6.57 | % | 9/26/2025 | |
| 2,405 |
| | 2,189 |
| | | | | | | |
| 2,405 |
| | 2,189 |
Containers, Packaging & Glass | | | | | | | | | | | | |
Liqui-Box Holdings, Inc. |
| L+4.50 | % | 6.07 | % | 2/26/2027 | |
| 4,247 |
| | 3,912 |
Polychem Acquisition, LLC |
| L+5.00 | % | 6.50 | % | 3/17/2025 | |
| 2,903 |
| | 2,898 |
Port Townsend Holdings Company, Inc. and Crown Corrugated Company |
| SF+8.75 | % | 8.38% Cash/ | (e) | 4/3/2024 | |
| 4,916 |
| | 1,693 |
PVHC Holding Corp |
| L+4.75 | % | 7.00 | % | 8/5/2024 | |
| 3,200 |
| | 3,088 |
| | | | | | | |
| 15,266 |
| | 11,591 |
Energy: Oil & Gas | | | | | | | | | | | | |
Drilling Info Holdings, Inc. |
| L+4.25 | % | 5.92 | % | 7/30/2025 | |
| 4,493 |
| | 4,407 |
Offen, Inc. |
| L+5.00 | % | 7.88 | % | 6/22/2026 | |
| 2,249 |
| | 2,249 |
Offen, Inc. |
| L+5.00 | % | 7.88 | % | 6/22/2026 | |
| 872 |
| | 872 |
| | | | | | | |
| 7,614 |
| | 7,528 |
FIRE: Finance | | | | | | | | | | | | |
Harbour Benefit Holdings, Inc. |
| L+5.25 | % | 7.50 | % | 12/13/2024 | |
| 2,924 |
| | 2,907 |
Harbour Benefit Holdings, Inc. |
| L+5.25 | % | 6.92 | % | 12/13/2024 | |
| 64 |
| | 64 |
Minotaur Acquisition, Inc. |
| SF+4.75 | % | 6.38 | % | 3/27/2026 | |
| 4,882 |
| | 4,634 |
| | | | | | | |
| 7,870 |
| | 7,605 |
FIRE: Real Estate | | | | | | | | | | | | |
Avison Young (USA) Inc. (c) |
| L+5.75 | % | 8.00 | % | 1/30/2026 | |
| 4,825 |
| | 4,768 |
| | | | | | | |
| 4,825 |
| | 4,768 |
32
46
MRCC SENIOR LOAN FUND I, LLC
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
December 31, 2020(unaudited)
June 30, 2022
| | | | | | | | | | | | | ||||||||||||||||||||
| | Spread Above | | | | | | | | | | | ||||||||||||||||||||
| Portfolio Company (a) | Spread Above Index (b) | Interest Rate (b) | Maturity | Principal | Fair Value |
| Index (b) |
| Interest Rate (b) |
| Maturity |
| Principal |
| Fair Value | |||||||||||||||||
Healthcare & Pharmaceuticals | | | | | | | | | | | | | ||||||||||||||||||||
Cano Health, LLC |
| SF+4.00 | % | 5.63 | % | 11/23/2027 | | | 1,980 |
| $ | 1,814 | ||||||||||||||||||||
HAH Group Holding Company LLC |
| SF+5.00 | % | 7.21 | % | 10/29/2027 | |
| 2,993 |
| | 2,858 | ||||||||||||||||||||
LSCS Holdings, Inc. |
| L+4.50 | % | 6.75 | % | 12/15/2028 | |
| 1,837 |
| | 1,754 | ||||||||||||||||||||
Paragon Healthcare, Inc. |
| SF+5.75 | % | 6.75 | % | 1/19/2028 | |
| 2,076 |
| | 2,066 | ||||||||||||||||||||
Paragon Healthcare, Inc. (Delayed Draw) (d) |
| SF+5.75 | % | 6.75 | % | 1/19/2028 | | | 429 |
| | 61 | ||||||||||||||||||||
Paragon Healthcare, Inc. (Revolver) (d) |
| SF+5.75 | % | 6.75 | % | 1/19/2028 | |
| 490 |
| | — | ||||||||||||||||||||
Radiology Partners, Inc. |
| L+4.25 | % | 5.89 | % | 7/9/2025 | |
| 4,760 |
| | 4,292 | ||||||||||||||||||||
TEAM Public Choices, LLC |
| L+5.00 | % | 6.67 | % | 12/17/2027 | |
| 2,970 |
| | 2,866 | ||||||||||||||||||||
| | | | | | | |
| 17,535 |
| | 15,711 | ||||||||||||||||||||
| High Tech Industries | | | | | | | | | | | | | ||||||||||||||||||||
| AQA Acquisition Holding, Inc. | L+4.25 | % | 5.25 | % | 5/24/2023 | 3,257 | $ | 3,257 | ||||||||||||||||||||||||
| Corel, Inc. (c) | L+5.00 | % | 5.23 | % | 7/2/2026 | 3,900 | 3,844 | |||||||||||||||||||||||||
Corel Inc. (c) |
| L+5.00 | % | 6.57 | % | 7/2/2026 | |
| 3,700 |
| | 3,550 | ||||||||||||||||||||
Lightbox Intermediate, L.P. |
| L+5.00 | % | 7.25 | % | 5/11/2026 | |
| 4,850 |
| | 4,729 | ||||||||||||||||||||
| LW Buyer, LLC | L+5.00 | % | 5.15 | % | 12/30/2024 | 4,925 | 4,900 |
| L+5.00 | % | 6.67 | % | 12/30/2024 | |
| 4,850 |
| | 4,777 | |||||||||||||
| TGG TS Acquisition Company | L+6.50 | % | 6.65 | % | 12/12/2025 | 3,753 | 3,720 |
| L+6.50 | % | 8.17 | % | 12/12/2025 | |
| 3,252 |
| | 3,149 | |||||||||||||
| 15,835 | 15,721 | |||||||||||||||||||||||||||||||
| | | | | | | |
| 16,652 |
| | 16,205 | ||||||||||||||||||||
| Hotels, Gaming & Leisure | | | | | | | | | | | | | ||||||||||||||||||||
| Excel Fitness Holdings, Inc. | L+5.25 | % | 6.25 | % | 10/7/2025 | 4,207 | 3,878 |
| SF+5.25 | % | 7.98 | % | 4/27/2029 | |
| 4,375 |
| | 4,309 | |||||||||||||
Excel Fitness Holdings, Inc. (Revolver) (d) |
| SF+5.25 | % | 7.98 | % | 4/28/2028 | |
| 625 |
| | — | ||||||||||||||||||||
| North Haven Spartan US Holdco, LLC | L+5.00 | % | 6.00 | % | 6/6/2025 | 2,321 | 1,979 |
| L+5.00 | % | 6.67 | % | 6/6/2025 | |
| 2,285 |
| | 2,106 | |||||||||||||
| Tait, LLC | L+5.00 | % | 5.23 | % | 3/28/2025 | 4,167 | 3,669 | |||||||||||||||||||||||||
| Tait, LLC (Revolver) | P+4.00 | % | 7.25 | % | 3/28/2025 | 769 | 711 | |||||||||||||||||||||||||
| 11,464 | 10,237 | |||||||||||||||||||||||||||||||
Tait LLC |
| L+5.00 | % | 5.97 | % | 3/28/2025 | |
| 4,104 |
| | 3,851 | ||||||||||||||||||||
Tait LLC (Revolver) |
| P+4.00 | % | 8.75 | % | 3/28/2025 | |
| 769 |
| | 736 | ||||||||||||||||||||
| | | | | | | |
| 12,158 |
| | 11,002 | ||||||||||||||||||||
| Media: Advertising, Printing & Publishing | | | | | | | | | | | | | ||||||||||||||||||||
| Cadent, LLC | L+5.50 | % | 6.50 | % | 9/11/2023 | 4,728 | 4,622 |
| L+5.00 | % | 6.67 | % | 9/11/2025 | |
| 4,237 |
| | 4,227 | |||||||||||||
| Cadent, LLC (Revolver) (d) | L+5.50 | % | 6.50 | % | 9/11/2023 | 167 | — |
| L+5.00 | % | 6.67 | % | 9/11/2025 | |
| 167 |
| | — | |||||||||||||
| Digital Room Holdings, Inc. | L+5.00 | % | 5.27 | % | 5/21/2026 | 4,362 | 4,133 | |||||||||||||||||||||||||
| Monotype Imaging Holdings, Inc. | L+5.50 | % | 6.50 | % | 10/9/2026 | 4,906 | 4,653 | |||||||||||||||||||||||||
| 14,163 | 13,408 | |||||||||||||||||||||||||||||||
| | | | | | | |
| 4,404 |
| | 4,227 | ||||||||||||||||||||
| Media: Diversified & Production | | | | | | | | | | | | | ||||||||||||||||||||
| Research Now Group, Inc. and Survey Sampling International, LLC | L+5.50 | % | 6.50 | % | 12/20/2024 | 6,790 | 6,708 |
| L+5.50 | % | 6.50 | % | 12/20/2024 | |
| 6,685 |
| | 6,197 | |||||||||||||
| Stats Intermediate Holding, LLC | L+5.25 | % | 5.47 | % | 7/10/2026 | 4,950 | 4,909 | |||||||||||||||||||||||||
| The Octave Music Group, Inc. | L+6.00 | % | 6.25% Cash/ 0.75% PIK | 5/29/2025 | 4,871 | 4,335 | ||||||||||||||||||||||||||
| 16,611 | 15,952 | |||||||||||||||||||||||||||||||
STATS Intermediate Holdings, LLC |
| L+5.25 | % | 6.69 | % | 7/10/2026 | |
| 4,875 |
| | 4,680 | ||||||||||||||||||||
TA TT Buyer, LLC |
| SF+5.25 | % | 7.30 | % | 3/30/2029 | |
| 3,333 |
| | 3,238 | ||||||||||||||||||||
| | | | | | | |
| 14,893 |
| | 14,115 | ||||||||||||||||||||
| Services: Business | | | | | | | | | | | | | ||||||||||||||||||||
| AQ Carver Buyer, Inc. | L+5.00 | % | 6.00 | % | 9/23/2025 | 4,937 | 4,888 |
| L+5.00 | % | 7.25 | % | 9/23/2025 | |
| 4,863 |
| | 4,717 | |||||||||||||
| CHA Holdings, Inc. | L+4.50 | % | 5.50 | % | 4/10/2025 | 2,002 | 1,872 | |||||||||||||||||||||||||
| CHA Holdings, Inc. | L+4.50 | % | 5.50 | % | 4/10/2025 | 422 | 395 | |||||||||||||||||||||||||
CHA Holdings, Inc |
| L+4.50 | % | 6.75 | % | 4/10/2025 | |
| 1,970 |
| | 1,871 | ||||||||||||||||||||
CHA Holdings, Inc |
| L+4.50 | % | 6.75 | % | 4/10/2025 | |
| 415 |
| | 395 | ||||||||||||||||||||
| Eliassen Group, LLC | L+4.25 | % | 4.40 | % | 11/5/2024 | 3,017 | 2,922 |
| SF+5.75 | % | 7.80 | % | 4/14/2028 | |
| 3,259 |
| | 3,241 | |||||||||||||
Eliassen Group, LLC (Delayed Draw) (d) |
| SF+5.75 | % | 7.80 | % | 4/14/2028 | |
| 741 |
| | — | ||||||||||||||||||||
| Engage2Excel, Inc. | L+8.00 | % | 7.00% Cash/ 2.00% PIK | 3/7/2023 | 4,299 | 4,178 |
| L+7.25 | % | 10.13 | % | 3/7/2023 | |
| 4,304 |
| | 4,282 | ||||||||||||||
| Engage2Excel, Inc. | L+8.00 | % | 7.00% Cash/ 2.00% PIK | 3/7/2023 | 776 | 754 |
| L+7.25 | % | 10.13 | % | 3/7/2023 | |
| 777 |
| | 773 | ||||||||||||||
| Engage2Excel, Inc. (Revolver) (d) | L+8.00 | % | 7.00% Cash/ 2.00% PIK | 3/7/2023 | 548 | 364 |
| P+6.25 | % | 11.00 | % | 3/7/2023 | |
| 557 |
| | 452 | ||||||||||||||
| GI Revelation Acquisition, LLC | L+5.00 | % | 5.15 | % | 4/16/2025 | 1,365 | 1,344 | |||||||||||||||||||||||||
| Legility, LLC | L+6.00 | % | 7.00 | % | 12/17/2025 | 4,906 | 4,735 | |||||||||||||||||||||||||
| Orbit Purchaser, LLC | L+4.50 | % | 5.50 | % | 10/21/2024 | 2,456 | 2,407 | |||||||||||||||||||||||||
| Orbit Purchaser, LLC | L+4.50 | % | 5.50 | % | 10/21/2024 | 1,897 | 1,859 | |||||||||||||||||||||||||
| Orbit Purchaser, LLC | L+4.50 | % | 5.50 | % | 10/21/2024 | 555 | 544 | |||||||||||||||||||||||||
Orbit Purchaser LLC |
| L+4.50 | % | 7.38 | % | 10/21/2024 | |
| 2,419 |
| | 2,370 | ||||||||||||||||||||
Orbit Purchaser LLC |
| L+4.50 | % | 7.38 | % | 10/21/2024 | |
| 1,868 |
| | 1,830 | ||||||||||||||||||||
Orbit Purchaser LLC |
| L+4.50 | % | 7.38 | % | 10/21/2024 | |
| 546 |
| | 535 | ||||||||||||||||||||
| Output Services Group, Inc. | L+4.50 | % | 5.50 | % | 3/27/2024 | 4,865 | 3,648 |
| L+4.50 | % | 6.01 | % | 3/27/2024 | |
| 4,790 |
| | 3,590 | |||||||||||||
| SIRVA Worldwide, Inc. | L+5.50 | % | 5.65 | % | 8/4/2025 | 1,900 | 1,741 | |||||||||||||||||||||||||
| Teneo Holdings, LLC | L+5.25 | % | 6.25 | % | 7/11/2025 | 4,938 | 4,903 | |||||||||||||||||||||||||
Secretariat Advisors LLC |
| L+4.75 | % | 7.00 | % | 12/29/2028 | |
| 1,701 |
| | 1,633 | ||||||||||||||||||||
Secretariat Advisors LLC (Delayed Draw) (d) |
| L+4.75 | % | 7.00 | % | 12/29/2028 | |
| 270 |
| | — | ||||||||||||||||||||
SIRVA Worldwide Inc. |
| L+5.50 | % | 7.17 | % | 8/4/2025 | |
| 1,825 |
| | 1,643 | ||||||||||||||||||||
Teneo Holdings LLC |
| SF+5.25 | % | 6.85 | % | 7/11/2025 | |
| 4,862 |
| | 4,550 | ||||||||||||||||||||
| The Kleinfelder Group, Inc. | L+5.25 | % | 6.25 | % | 11/29/2024 | 2,450 | 2,450 |
| L+5.25 | % | 7.50 | % | 11/29/2024 | |
| 2,374 |
| | 2,372 | |||||||||||||
| 41,333 | 39,004 | |||||||||||||||||||||||||||||||
| | | | | | | |
| 37,541 |
| | 34,254 | ||||||||||||||||||||
| Services: Consumer | | | | | | | | | | | | | ||||||||||||||||||||
| Cambium Learning Group, Inc. | L+4.50 | % | 4.75 | % | 12/18/2025 | 4,900 | 4,883 | |||||||||||||||||||||||||
| LegalZoom.com, Inc. | L+4.50 | % | 4.65 | % | 11/21/2024 | 2,694 | 2,706 | |||||||||||||||||||||||||
| 7,594 | 7,589 | |||||||||||||||||||||||||||||||
360Holdco, Inc. |
| L+4.75 | % | 6.42 | % | 8/2/2025 | |
| 2,156 |
| | 2,145 | ||||||||||||||||||||
360Holdco, Inc. (Delayed Draw) (d) |
| L+4.75 | % | 6.42 | % | 8/2/2025 | |
| 827 |
| | — | ||||||||||||||||||||
Laseraway Intermediate Holdings II, LLC |
| L+5.75 | % | 6.79 | % | 10/14/2027 | |
| 2,211 |
| | 2,179 | ||||||||||||||||||||
McKissock Investment Holdings, LLC |
| SF+5.00 | % | 5.92 | % | 3/9/2029 | |
| 2,494 |
| | 2,419 | ||||||||||||||||||||
| | | | | | | |
| 7,688 |
| | 6,743 | ||||||||||||||||||||
| Telecommunications | | | | | | | | | | | | | ||||||||||||||||||||
| Intermedia Holdings, Inc. | L+6.00 | % | 7.00 | % | 7/21/2025 | 1,797 | 1,795 |
| L+6.00 | % | 7.67 | % | 7/21/2025 | |
| 1,769 |
| | 1,672 | |||||||||||||
| Mavenir Systems, Inc. | L+6.00 | % | 7.00 | % | 5/8/2025 | 3,900 | 3,893 |
| L+4.75 | % | 6.21 | % | 8/18/2028 | |
| 1,663 |
| | 1,554 | |||||||||||||
| 5,697 | 5,688 | |||||||||||||||||||||||||||||||
Sandvine Corporation |
| L+4.50 | % | 6.17 | % | 10/31/2025 | |
| 2,000 |
| | 1,920 | ||||||||||||||||||||
| | | | | | | |
| 5,432 |
| | 5,146 | ||||||||||||||||||||
| Transportation: Cargo | | | | | | | | | | | | | ||||||||||||||||||||
| GlobalTranz Enterprises, LLC | L+5.00 | % | 5.15 | % | 5/15/2026 | 3,262 | 3,050 | |||||||||||||||||||||||||
| 3,262 | 3,050 | |||||||||||||||||||||||||||||||
Keystone Purchaser, LLC |
| L+6.25 | % | 8.50 | % | 5/7/2027 | |
| 4,981 |
| | 4,981 | ||||||||||||||||||||
| | | | | | | |
| 4,981 |
| | 4,981 | ||||||||||||||||||||
| Utilities: Oil & Gas | | | | | | | | | | | | | ||||||||||||||||||||
| NGS US Finco, LLC | L+4.25 | % | 5.25 | % | 10/1/2025 | 1,712 | 1,640 | |||||||||||||||||||||||||
| NGS US Finco, LLC | L+5.25 | % | 6.25 | % | 10/1/2025 | 250 | 246 | |||||||||||||||||||||||||
| 1,962 | 1,886 | |||||||||||||||||||||||||||||||
Dresser Utility Solutions, LLC (fka NGS US Finco, LLC) |
| L+4.25 | % | 5.92 | % | 10/1/2025 | |
| 1,686 |
| | 1,627 | ||||||||||||||||||||
Dresser Utility Solutions, LLC (fka NGS US Finco, LLC) |
| L+5.25 | % | 6.92 | % | 10/1/2025 | |
| 246 |
| | 240 | ||||||||||||||||||||
| | | | | | | |
| 1,932 |
| | 1,867 | ||||||||||||||||||||
| Wholesale | | | | | | | | | | | | | ||||||||||||||||||||
| BMC Acquisition, Inc. | L+5.25 | % | 6.25 | % | 12/30/2024 | 4,850 | 4,802 |
| L+5.25 | % | 7.08 | % | 12/30/2024 | |
| 4,486 |
| | 4,273 | |||||||||||||
| HALO Buyer, Inc. | L+4.50 | % | 5.50 | % | 6/30/2025 | 4,875 | 4,533 |
| L+4.50 | % | 6.17 | % | 6/30/2025 | |
| 4,799 |
| | 4,330 | |||||||||||||
| PT Intermediate Holdings III, LLC | L+5.50 | % | 6.50 | % | 10/15/2025 | 1,980 | 1,851 | |||||||||||||||||||||||||
| 11,705 | 11,186 | |||||||||||||||||||||||||||||||
| | | | | | | |
| 9,285 |
| | 8,603 | ||||||||||||||||||||
| TOTAL INVESTMENTS | $ | 205,695 | | | | | | | | | |
| $ | 195,190 | ||||||||||||||||||
47
MRCC SENIOR LOAN FUND I, LLC
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
June 30, 2022
| (a) | All investments are U.S. companies unless otherwise noted. |
| (b) | The majority of |
| (c) | This is an international company. |
| (d) | All or a portion of this commitment was unfunded as of |
| (e) | This position was on non-accrual status as of |
48
MRCC SENIOR LOAN FUND I, LLC
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2021
| | | | | | | | | | | |
|
| Spread Above |
| |
| |
| |
| | |
Portfolio Company (a) | | Index (b) | | Interest Rate (b) | | Maturity | | Principal | | Fair Value | |
Non-Controlled/Non-Affiliate Company Investments | | | | | | | | | | | |
Senior Secured Loans |
|
|
|
|
|
|
|
|
| |
|
Aerospace & Defense |
|
|
|
|
|
|
|
|
| |
|
Bromford Industries Limited (c) |
| P+4.25 | % | 7.50 | % | 11/5/2025 |
| 2,744 | | $ | 2,692 |
Bromford Industries Limited (c) |
| P+4.25 | % | 7.50 | % | 11/5/2025 |
| 1,829 | |
| 1,794 |
Trident Maritime Systems, Inc. |
| L+5.50 | % | 6.50 | % | 2/26/2027 |
| 2,467 | |
| 2,478 |
Trident Maritime Systems, Inc. (Revolver) (d) |
| L+5.50 | % | 6.50 | % | 2/26/2027 |
| 265 | |
| — |
|
| |
| | | | | 7,305 | | | 6,964 |
Automotive |
|
|
|
|
|
|
|
| |
|
|
Accelerate Auto Works Intermediate, LLC |
| L+4.75 | % | 5.75 | % | 12/1/2027 |
| 1,454 | |
| 1,436 |
Accelerate Auto Works Intermediate, LLC (Delayed Draw) (d) |
| L+4.75 | % | 5.75 | % | 12/1/2027 |
| 388 | |
| — |
Accelerate Auto Works Intermediate, LLC (Revolver) (d) |
| L+4.75 | % | 5.75 | % | 12/1/2027 |
| 132 | |
| — |
Truck-Lite Co., LLC |
| L+6.25 | % | 7.25 | % | 12/14/2026 |
| 1,709 | |
| 1,718 |
Truck-Lite Co., LLC |
| L+6.25 | % | 7.25 | % | 12/14/2026 |
| 253 | |
| 255 |
Wheel Pros, Inc. |
| L+4.50 | % | 5.25 | % | 5/11/2028 |
| 1,952 | |
| 1,951 |
|
| |
| | | | | 5,888 | | | 5,360 |
Beverage, Food & Tobacco |
|
|
|
|
|
|
|
| |
|
|
CBC Restaurant Corp. |
| n/a |
| 5.00% PIK | (f) | 12/30/2022 |
| 1,116 | |
| 1,072 |
SW Ingredients Holdings, LLC |
| L+4.75 | % | 5.75 | % | 7/3/2025 |
| 3,619 | |
| 3,619 |
|
| |
| | | | | 4,735 | | | 4,691 |
Capital Equipment |
|
|
|
|
|
|
|
| |
|
|
Analogic Corporation |
| L+5.25 | % | 6.25 | % | 6/24/2024 |
| 4,752 | |
| 4,702 |
DS Parent, Inc. (e) |
| L+5.75 | % | 6.50 | % | 12/8/2028 |
| 3,000 | |
| 2,970 |
|
| |
| | | | | 7,752 | | | 7,672 |
Chemicals, Plastics & Rubber |
|
|
|
|
|
|
|
| |
|
|
Polymer Solutions Group |
| L+7.00 | % | 8.00 | % | 1/3/2023 |
| 1,178 | |
| 1,169 |
|
| |
| | | | | 1,178 | | | 1,169 |
Construction & Building |
|
|
|
|
|
|
|
| |
|
|
The Cook & Boardman Group LLC |
| L+5.75 | % | 6.75 | % | 10/20/2025 |
| 2,910 | |
| 2,838 |
|
| |
| | | | | 2,910 | | | 2,838 |
Consumer Goods: Durable |
|
|
|
|
|
|
|
| |
|
|
International Textile Group, Inc. |
| L+5.00 | % | 5.13 | % | 5/1/2024 |
| 1,711 | |
| 1,590 |
Runner Buyer INC. (e) |
| L+5.50 | % | 6.25 | % | 10/23/2028 |
| 3,000 | |
| 2,970 |
|
| |
| | | | | 4,711 | | | 4,560 |
Consumer Goods: Non-Durable |
|
|
|
|
|
|
|
| |
|
|
PH Beauty Holdings III, INC. |
| L+5.00 | % | 5.18 | % | 9/26/2025 |
| 2,418 | |
| 2,284 |
|
| |
| | | | | 2,418 | | | 2,284 |
Containers, Packaging & Glass |
|
|
|
|
|
|
|
| |
|
|
Liqui-Box Holdings, Inc. |
| L+4.50 | % | 5.50 | % | 2/26/2027 |
| 4,268 | |
| 3,991 |
Polychem Acquisition, LLC |
| L+5.00 | % | 5.50 | % | 3/17/2025 |
| 2,918 | |
| 2,917 |
Port Townsend Holdings Company, Inc. and Crown Corrugated Company |
| L+6.75 | % | 5.75% Cash/ |
| 4/3/2024 |
| 4,751 | |
| 4,238 |
PVHC Holding Corp |
| L+4.75 | % | 5.75 | % | 8/5/2024 |
| 3,217 | |
| 2,976 |
|
| |
| | | | | 15,154 | | | 14,122 |
Energy: Oil & Gas |
|
|
|
|
|
|
|
| |
|
|
Drilling Info Holdings, Inc. |
| L+4.25 | % | 4.35 | % | 7/30/2025 |
| 4,516 | |
| 4,471 |
Offen, Inc. |
| L+5.00 | % | 5.10 | % | 6/22/2026 |
| 2,388 | |
| 2,387 |
Offen, Inc. |
| L+5.00 | % | 5.10 | % | 6/22/2026 |
| 876 | |
| 876 |
|
| |
| | | | | 7,780 | | | 7,734 |
FIRE: Finance |
|
|
|
|
|
|
|
| |
|
|
Harbour Benefit Holdings, Inc. |
| L+5.25 | % | 6.25 | % | 12/13/2024 |
| 2,948 | |
| 2,932 |
Harbour Benefit Holdings, Inc. |
| L+5.25 | % | 6.25 | % | 12/13/2024 |
| 66 | |
| 65 |
Minotaur Acquisition, Inc. (e) |
| L+4.75 | % | 4.85 | % | 3/27/2026 |
| 4,912 | |
| 4,894 |
|
| |
| | | | | 7,926 | | | 7,891 |
FIRE: Real Estate |
|
|
|
|
|
|
|
| |
|
|
Avison Young (USA) Inc. (c) |
| L+5.75 | % | 5.97 | % | 1/30/2026 |
| 4,850 | |
| 4,824 |
|
| |
| | | | | 4,850 | | | 4,824 |
Healthcare & Pharmaceuticals |
|
|
|
|
|
|
|
| |
|
|
Cano Health, LLC (e) | | SF+4.00 | % | 4.51 | % | 11/23/2027 | | 1,995 | | | 1,997 |
LSCS Holdings, Inc. (e) |
| L+4.50 | % | 5.00 | % | 12/15/2028 |
| 1,846 | |
| 1,849 |
Radiology Partners, Inc. |
| L+4.25 | % | 4.35 | % | 7/9/2025 |
| 4,760 | |
| 4,700 |
TEAM Public Choices, LLC (e) |
| L+5.00 | % | 6.00 | % | 12/17/2027 |
| 2,992 | |
| 2,985 |
|
| |
| | | | | 11,593 | | | 11,531 |
49
MRCC SENIOR LOAN FUND I, LLC
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
December 31, 2021
| | | | | | | | | | | | |
|
| Spread Above |
| |
| |
| |
| | | |
Portfolio Company (a) |
| Index (b) |
| Interest Rate (b) |
| Maturity |
| Principal |
| Fair Value | ||
High Tech Industries | |
| | | | |
| |
| |
| |
Corel Inc. (c) |
| | L+5.00 | % | 5.18 | % | 7/2/2026 |
| 3,800 | | $ | 3,797 |
Lightbox Intermediate, L.P. |
| | L+5.00 | % | 5.13 | % | 5/11/2026 |
| 4,875 | |
| 4,814 |
LW Buyer, LLC |
| | L+5.00 | % | 5.14 | % | 12/30/2024 |
| 4,875 | |
| 4,863 |
TGG TS Acquisition Company |
| | L+6.50 | % | 6.60 | % | 12/12/2025 |
| 3,435 | |
| 3,446 |
|
| | |
| | | | | 16,985 | | | 16,920 |
Hotels, Gaming & Leisure |
| |
|
|
|
|
|
|
| |
|
|
Excel Fitness Holdings, Inc. |
| | L+5.25 | % | 6.25 | % | 10/7/2025 |
| 4,165 | |
| 4,155 |
North Haven Spartan US Holdco, LLC |
| | L+5.00 | % | 6.00 | % | 6/6/2025 |
| 2,297 | |
| 2,037 |
Tait LLC |
| | L+5.00 | % | 5.14 | % | 3/28/2025 |
| 4,125 | |
| 3,785 |
Tait LLC (Revolver) |
| | P+4.00 | % | 7.25 | % | 3/28/2025 |
| 769 | |
| 728 |
|
| | |
| | | | | 11,356 | | | 10,705 |
Media: Advertising, Printing & Publishing |
| |
|
|
|
|
|
|
| |
|
|
Cadent, LLC |
| | L+5.00 | % | 6.00 | % | 9/11/2023 |
| 4,339 | |
| 4,296 |
Cadent, LLC (Revolver) (d) |
| | L+5.00 | % | 6.00 | % | 9/11/2023 |
| 167 | |
| — |
|
| | |
| | | | | 4,506 | | | 4,296 |
Media: Diversified & Production |
| |
|
|
|
|
|
|
| |
|
|
Research Now Group, Inc. and Survey Sampling International, LLC |
| | L+5.50 | % | 6.50 | % | 12/20/2024 |
| 6,720 | |
| 6,645 |
STATS Intermediate Holdings, LLC |
| | L+5.25 | % | 5.41 | % | 7/10/2026 |
| 4,900 | |
| 4,897 |
The Octave Music Group, Inc. |
| | L+6.00 | % | 7.00 | % | 5/29/2025 |
| 3,866 | |
| 3,871 |
|
| | |
| | | | | 15,486 | | | 15,413 |
Services: Business |
| |
|
|
|
|
|
|
| |
|
|
AQ Carver Buyer, Inc. |
| | L+5.00 | % | 6.00 | % | 9/23/2025 |
| 4,888 | |
| 4,900 |
CHA Holdings, Inc |
| | L+4.50 | % | 5.50 | % | 4/10/2025 |
| 1,980 | |
| 1,901 |
CHA Holdings, Inc |
| | L+4.50 | % | 5.50 | % | 4/10/2025 |
| 418 | |
| 401 |
Eliassen Group LLC |
| | L+4.25 | % | 4.35 | % | 11/5/2024 |
| 3,956 | |
| 3,956 |
Engage2Excel, Inc. |
| | L+8.00 | % | 7.00% Cash/ |
| 3/7/2023 |
| 4,326 | |
| 4,329 |
Engage2Excel, Inc. |
| | L+8.00 | % | 7.00% Cash/ |
| 3/7/2023 |
| 781 | |
| 781 |
Engage2Excel, Inc. (Revolver) (d) |
| | L+8.00 | % | 7.00% Cash/ |
| 3/7/2023 |
| 555 | |
| 541 |
Orbit Purchaser LLC |
| | L+4.50 | % | 5.50 | % | 10/21/2024 |
| 2,431 | |
| 2,425 |
Orbit Purchaser LLC |
| | L+4.50 | % | 5.50 | % | 10/21/2024 |
| 1,877 | |
| 1,873 |
Orbit Purchaser LLC |
| | L+4.50 | % | 5.50 | % | 10/21/2024 |
| 549 | |
| 548 |
Output Services Group, Inc. |
| | L+4.50 | % | 5.50 | % | 3/27/2024 |
| 4,815 | |
| 4,145 |
Secretariat Advisors LLC (e) |
| | L+4.75 | % | 5.50 | % | 12/29/2028 |
| 1,710 | |
| 1,693 |
Secretariat Advisors LLC (d) (e) |
| | L+4.75 | % | 5.50 | % | 12/29/2028 |
| 270 | |
| — |
SIRVA Worldwide Inc. |
| | L+5.50 | % | 5.60 | % | 8/4/2025 |
| 1,850 | |
| 1,683 |
Teneo Holdings LLC |
| | L+5.25 | % | 6.25 | % | 7/11/2025 |
| 4,888 | |
| 4,908 |
The Kleinfelder Group, Inc. |
| | L+5.25 | % | 6.25 | % | 11/29/2024 |
| 2,387 | |
| 2,387 |
|
| | |
| | | | | 37,681 | | | 36,471 |
Services: Consumer |
| |
|
|
|
|
|
|
| |
|
|
360Holdco, Inc. |
| | L+4.75 | % | 5.75 | % | 8/2/2025 |
| 2,168 | |
| 2,161 |
360Holdco, Inc. (Delayed Draw) (d) |
| | L+4.75 | % | 5.75 | % | 8/2/2025 |
| 827 | |
| — |
Laseraway Intermediate Holdings II, LLC |
| | L+5.75 | % | 6.50 | % | 10/14/2027 |
| 2,222 | |
| 2,214 |
|
| | |
| | | | | 5,217 | | | 4,375 |
Telecommunications |
| |
|
|
|
|
|
|
| |
|
|
Intermedia Holdings, Inc. |
| | L+6.00 | % | 7.00 | % | 7/21/2025 |
| 1,778 | |
| 1,770 |
Mavenir Systems, Inc. |
| | L+4.75 | % | 5.25 | % | 8/18/2028 |
| 1,667 | |
| 1,669 |
Sandvine Corporation |
| | L+4.50 | % | 4.60 | % | 10/31/2025 |
| 2,000 | |
| 1,999 |
|
| | |
| | | | | 5,445 | | | 5,438 |
Transportation: Cargo |
| |
|
|
|
|
|
|
| |
|
|
Keystone Purchaser, LLC (e) |
| | L+6.25 | % | 7.25 | % | 5/7/2027 |
| 3,000 | |
| 2,947 |
|
| | |
| | | | | 3,000 | | | 2,947 |
Utilities: Oil & Gas |
| |
|
|
|
|
|
|
| |
|
|
NGS US Finco, LLC |
| | L+4.25 | % | 5.25 | % | 10/1/2025 |
| 1,695 | |
| 1,644 |
NGS US Finco, LLC |
| | L+5.25 | % | 6.25 | % | 10/1/2025 |
| 248 | |
| 244 |
|
| | |
| | | | | 1,943 | | | 1,888 |
Wholesale |
| |
|
|
|
|
|
|
| |
|
|
BMC Acquisition, Inc. |
| | L+5.25 | % | 6.25 | % | 12/30/2024 |
| 4,486 | |
| 4,469 |
HALO Buyer, Inc. |
| | L+4.50 | % | 5.50 | % | 6/30/2025 |
| 4,824 | |
| 4,547 |
|
| | |
| | | | | 9,310 | | | 9,016 |
| | | | | | | | | | | | |
TOTAL INVESTMENTS | | | |
|
|
|
|
|
| | $ | 189,109 |
50
| (a) | All investments are U.S. companies unless otherwise noted. |
| (b) | The majority of investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), Secured Overnight Financing Rate (“SOFR” or “SF”) or Prime (“P”) which reset daily, monthly, quarterly or semiannually. The Company has provided the spread over LIBOR, SOFR or Prime and the current contractual rate of interest in effect at December 31, 2021. Certain investments are subject to an interest rate floor. |
| (c) | This is an international company. |
| (d) | All or a portion of this commitment was unfunded as of December 31, 2021. As such, interest is earned only on the funded portion of this commitment. Principal reflects the commitment outstanding. |
| (e) | Investment position or portion thereof unsettled at December 31, 2021. |
| (f) | This position was on non-accrual status as of December 31, 2021, meaning that the Company has ceased accruing interest income on the position. |
51
Below is certain summarized financial information for SLF as of SeptemberJune 30, 20212022 and December 31, 20202021 and for the three and ninesix months ended SeptemberJune 30, 20212022 and 2020:2021:
| | | | | | |
|
| June 30, 2022 |
| December 31, 2021 | ||
| | (unaudited) | | | | |
Assets |
| |
|
| |
|
Investments, at fair value | | $ | 195,190 | | $ | 189,109 |
Cash | |
| 735 | |
| 40 |
Restricted cash | |
| 6,744 | |
| 4,862 |
Interest receivable | |
| 886 | |
| 600 |
Other assets | |
| — | |
| 12 |
Total assets | | $ | 203,555 | | $ | 194,623 |
Liabilities | |
|
| |
|
|
Revolving credit facility | | $ | 129,615 | | $ | 94,765 |
Less: Unamortized deferred financing costs | |
| (1,922) | |
| (2,319) |
Total debt, less unamortized deferred financing costs | |
| 127,693 | |
| 92,446 |
Payable for open trades | |
| — | |
| 19,367 |
Interest payable | |
| 423 | |
| 242 |
Accounts payable and accrued expenses | |
| 338 | |
| 318 |
Total liabilities | |
| 128,454 | |
| 112,373 |
Members’ capital | |
| 75,101 | |
| 82,250 |
Total liabilities and members’ capital | | $ | 203,555 | | $ | 194,623 |
| | | | | | | | | | | | |
| | Three months ended June 30, | | Six months ended June 30, | ||||||||
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||
| | (unaudited) | | (unaudited) | ||||||||
Investment income: |
| |
|
| |
|
| |
|
| |
|
Interest income | | $ | 3,385 | | $ | 3,210 | | $ | 6,518 | | $ | 6,663 |
Total investment income | |
| 3,385 | |
| 3,210 | |
| 6,518 | |
| 6,663 |
Expenses: | |
|
| |
|
| |
|
| |
|
|
Interest and other debt financing expenses | |
| 1,216 | |
| 1,024 | |
| 2,197 | |
| 2,003 |
Professional fees | |
| 205 | |
| 162 | |
| 377 | |
| 332 |
Total expenses | |
| 1,421 | |
| 1,186 | |
| 2,574 | |
| 2,335 |
Net investment income (loss) | |
| 1,964 | |
| 2,024 | |
| 3,944 | |
| 4,328 |
Net gain (loss): | |
|
| |
|
| |
|
| |
|
|
Net change in unrealized gain (loss) | |
| (6,483) | |
| 761 | |
| (8,493) | |
| 4,424 |
Net gain (loss) | |
| (6,483) | |
| 761 | |
| (8,493) | |
| 4,424 |
Net increase (decrease) in members’ capital | | $ | (4,519) | | $ | 2,785 | | $ | (4,549) | | $ | 8,752 |
| September 30, 2021 | December 31, 2020 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Investments, at fair value | $ | 192,534 | $ | 205,695 | ||||
| Cash | 78 | 351 | ||||||
| Restricted cash | 3,450 | 2,948 | ||||||
| Interest receivable | 520 | 629 | ||||||
| Other assets | 50 | 43 | ||||||
| Total assets | $ | 196,632 | $ | 209,666 | ||||
| Liabilities | ||||||||
| Revolving credit facility | $ | 104,564 | $ | 131,497 | ||||
| Less: Unamortized deferred financing costs | (1,173 | ) | (969 | ) | ||||
| Total debt, less unamortized deferred financing costs | 103,391 | 130,528 | ||||||
| Payable for open trades | 9,964 | — | ||||||
| Interest payable | 242 | 294 | ||||||
| Accounts payable and accrued expenses | 372 | 277 | ||||||
| Total liabilities | 113,969 | 131,099 | ||||||
| Members’ capital | 82,663 | 78,567 | ||||||
| Total liabilities and members’ capital | $ | 196,632 | $ | 209,666 | ||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Investment income: | ||||||||||||||||
| Interest income | $ | 3,250 | $ | 3,726 | $ | 9,913 | $ | 11,990 | ||||||||
| Total investment income | 3,250 | 3,726 | 9,913 | 11,990 | ||||||||||||
| Expenses: | ||||||||||||||||
| Interest and other debt financing expenses | 972 | 1,111 | 2,975 | 4,213 | ||||||||||||
| Professional fees | 158 | 169 | 490 | 517 | ||||||||||||
| Total expenses | 1,130 | 1,280 | 3,465 | 4,730 | ||||||||||||
| Net investment income (loss) | 2,120 | 2,446 | 6,448 | 7,260 | ||||||||||||
| Net gain (loss): | ||||||||||||||||
| Net realized gain (loss) | — | 15 | — | 15 | ||||||||||||
| Net change in unrealized gain (loss) | (177 | ) | 3,677 | 4,247 | (10,751 | ) | ||||||||||
| Net gain (loss) | (177 | ) | 3,692 | 4,247 | (10,736 | ) | ||||||||||
| Net increase (decrease) in members’ capital | $ | 1,943 | $ | 6,138 | $ | 10,695 | $ | (3,476 | ) | |||||||
Note 4. Fair Value Measurements
Investments
The Company values all investments in accordance with ASC Topic 820. ASC Topic 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity.
52
ASC Topic 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:
| Level 1 –Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. |
| Level 2 –Valuations based on inputs other than quoted prices in active markets, including quoted prices for similar assets or liabilities, which are either directly or indirectly observable. |
| Level 3 –Valuations based on inputs that are unobservable and significant to the overall fair value measurement. This includes situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value are based upon the best information available and may require significant management judgment or estimation. |
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. As of September 30, 2021 and December 31, 2020, all investments, with the exception of investments measured at fair value using net asset value (“NAV”), were categorized as Level 3 investments.
With respect to investments for which market quotations are not readily available, the Company’s Board undertakes a multi-step valuation process each quarter, as described below:
| the quarterly valuation process begins with each portfolio company or investment being initially evaluated and rated by the investment professionals of MC Advisors responsible for the credit monitoring of the portfolio investment; |
| ● | ||
| the Board engages one or more independent valuation firm(s) to conduct independent appraisals of a selection of investments for which market quotations are not readily available. The Company will consult with independent valuation firm(s) relative to each portfolio company at least once in every calendar year, but the independent appraisals are generally received quarterly for each investment; |
| to the extent an independent valuation firm is not engaged to conduct an investment appraisal on an investment for which market quotations are not readily available, the investment will be valued by the MC Advisors investment professional responsible for the credit monitoring; |
| ● | ||
| preliminary valuation conclusions are then documented and discussed with the investment committee of MC Advisors; |
| ● | ||
| the audit committee of the Board reviews the preliminary valuations of MC Advisors and of the independent valuation firm(s) and MC Advisors adjusts or further supplements the valuation recommendations to reflect any comments provided by the audit committee; and |
| ● | ||
| the Board discusses these valuations and determines the fair value of each investment in the portfolio in good faith, based on the input of MC Advisors, the independent valuation firm(s) and the audit committee. |
53
The accompanying consolidated schedules of investments held by the Company consist primarily of private debt instruments (“Level 3 debt”). The Company generally uses the income approach to determine fair value for Level 3 debt where market quotations are not readily available, as long as it is appropriate. If there is deterioration in credit quality or a debt investment is in workout status, the Company may consider other factors in determining the fair value, including the value attributable to the debt investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. This liquidation analysis may include probability weighting of alternative outcomes. The Company generally considers its Level 3 debt to be performing if the borrower is not in default, the borrower is remitting payments in a timely manner; the loan is in covenant compliance or is otherwise not deemed to be impaired. In determining the fair value of the performing Level 3 debt, the Company considers fluctuations in current interest rates, the trends in yields of debt instruments with similar credit ratings, financial condition of the borrower, economic conditions and other relevant factors, both qualitative and quantitative. In the event that a Level 3 debt instrument is not performing, as defined above, the Company will evaluate the value of the collateral utilizing the same framework described above for a performing loan to determine the value of the Level 3 debt instrument.
Under the income approach, discounted cash flow models are utilized to determine the present value of the future cash flow streams of its debt investments, based on future interest and principal payments as set forth in the associated loan agreements. In determining fair value under the income approach, the Company also considers the following factors: applicable market yields and leverage levels, credit quality, prepayment penalties, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, and changes in the interest rate environment and the credit markets that generally may affect the price at which similar investments may be made.
Under the market approach, the enterprise value methodology is typically utilized to determine the fair value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which the Company derives a single estimate of enterprise value. In estimating the enterprise value of a portfolio company, the Company analyzes various factors consistent with industry practice, including but not limited to original transaction multiples, the portfolio company’s historical and projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. Typically, the enterprise values of private companies are based on multiples of earnings before interest, income taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value.
In addition, for certain debt investments, the Company may base its valuation on indicative bid and ask prices provided by an independent third-party pricing service. Bid prices reflect the highest price that the Company and others may be willing to pay. Ask prices represent the lowest price that the Company and others may be willing to accept. The Company generally uses the midpoint of the bid/ask range as its best estimate of fair value of such investment.
As of SeptemberJune 30, 2021,2022, the Board determined, in good faith, the fair value of the Company’s portfolio investments in accordance with GAAP and the Company’s valuation procedures based on the facts and circumstances known by the Company at that time, or reasonably expected to be known at that time. Due to the overall volatility that the COVID-19 pandemic has caused, any valuations conducted in the future in conformity with GAAP could result in a lower fair value of the Company’s portfolio. The potential impact of COVID-19 on the Company’s results going forward will depend to a large extent on future developments or new information that may emerge regarding the full duration and severity of COVID-19, including the actions taken by governments and other entities to contain COVID-19 or treat its impact, all of which are beyond the Company’s control. Accordingly, the Company cannot predict the extent to which its financial condition and results of operations will be affected at this time.
Foreign Currency Forward Contracts
The valuation for the Company’s foreign currency forward contracts is based on the difference between the exchange rate associated with the forward contract and the exchange rate at the current period end. Foreign currency forward contracts are categorized as Level 2 in the fair value hierarchy.
54
Fair Value Disclosures
The following tables present fair value measurements of investments and foreign currency forward contracts, by major class according to the fair value hierarchy:
| | | | | | | | | | | | |
| | Fair Value Measurements | ||||||||||
June 30, 2022 | | Level 1 | | Level 2 | | Level 3 | | Total | ||||
Investments: |
| |
|
| |
|
| |
|
| |
|
Senior secured loans | | $ | — | | $ | — | | $ | 415,244 | | $ | 415,244 |
Unitranche secured loans | |
| — | |
| — | |
| 34,114 | |
| 34,114 |
Junior secured loans | |
| — | |
| — | |
| 19,745 | |
| 19,745 |
Equity securities | |
| 548 | |
| — | |
| 28,837 | |
| 29,385 |
Investments measured at NAV (1) (2) | |
| — | |
| — | |
| — | |
| 37,551 |
Total investments | | $ | 548 | | $ | — | | $ | 497,940 | | $ | 536,039 |
Foreign currency forward contracts asset (liability) | | $ | — | | $ | 1,421 | | $ | — | | $ | 1,421 |
| Fair Value Measurements | ||||||||||||||||
| September 30, 2021 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Investments: | ||||||||||||||||
| Senior secured loans | $ | — | $ | — | $ | 425,055 | $ | 425,055 | ||||||||
| Unitranche secured loans | — | — | 44,420 | 44,420 | ||||||||||||
| Junior secured loans | — | — | 9,181 | 9,181 | ||||||||||||
| Equity securities | — | — | 33,757 | 33,757 | ||||||||||||
| Investments measured at NAV (1) (2) | — | — | — | 41,331 | ||||||||||||
| Total investments | $ | — | $ | — | $ | 512,413 | $ | 553,744 | ||||||||
| Foreign currency forward contracts asset (liability) | $ | — | $ | 863 | $ | — | $ | 863 | ||||||||
| Fair Value Measurements | ||||||||||||||||
| December 31, 2020 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Investments: | ||||||||||||||||
| Senior secured loans | $ | — | $ | — | $ | 405,224 | $ | 405,224 | ||||||||
| Unitranche secured loans | — | — | 64,040 | 64,040 | ||||||||||||
| Junior secured loans | — | — | 14,592 | 14,592 | ||||||||||||
| Equity securities | — | — | 23,899 | 23,899 | ||||||||||||
| Investments measured at NAV (1) (2) | — | — | — | 39,284 | ||||||||||||
| Total investments | $ | — | $ | — | $ | 507,755 | $ | 547,039 | ||||||||
| Foreign currency forward contracts asset (liability) | $ | — | $ | (113 | ) | $ | — | $ | (113 | ) | ||||||
| | | | | | | | | | | | |
| | Fair Value Measurements | ||||||||||
December 31, 2021 | | Level 1 | | Level 2 | | Level 3 | | Total | ||||
Investments: |
| |
|
| |
|
| |
|
| |
|
Senior secured loans | | $ | — | | $ | — | | $ | 423,700 | | $ | 423,700 |
Unitranche secured loans | |
| — | |
| — | |
| 51,494 | |
| 51,494 |
Junior secured loans | |
| — | |
| — | |
| 14,364 | |
| 14,364 |
Equity securities | |
| 1,041 | |
| — | |
| 29,969 | |
| 31,010 |
Investments measured at NAV (1) (2) | |
| — | |
| — | |
| — | |
| 41,125 |
Total investments | | $ | 1,041 | | $ | — | | $ | 519,527 | | $ | 561,693 |
Foreign currency forward contracts asset (liability) | | $ | — | | $ | 781 | | $ | — | | $ | 781 |
| (1) | Certain investments that are measured at fair value using the NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the consolidated statements of assets and liabilities. |
| (2) | Represents the Company’s investment in LLC equity interests in SLF. The fair value of this investment has been determined using the NAV of the Company’s ownership interest in SLF’s members’ capital. |
Senior secured loans, unitranche secured loans and junior secured loans are collateralized by tangible and intangible assets of the borrowers. These investments include loans to entities that have some level of challenge in obtaining financing from other, more conventional institutions, such as a bank. Interest rates on these loans are either fixed or floating, and are based on current market conditions and credit ratings of the borrower. Excluding loans on non-accrual, the contractual interest rates on the loans ranged from 6.00%6.67% to 18.00%16.14% at SeptemberJune 30, 20212022 and 6.00% to 18.00%16.00% at December 31, 2020.2021. The maturity dates on the loans outstanding at SeptemberJune 30, 20212022 range between December 2021August 2022 and July 2028.
55
The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and ninesix months ended SeptemberJune 30, 2021:2022:
| Investments | |||||||||||||||||||||||||||||||||||
| Senior secured loans | Unitranche secured loans | Junior secured loans | Equity securities | Total investments | |||||||||||||||||||||||||||||||
| Balance as of June 30, 2021 | $ | 404,322 | $ | 45,500 | $ | 8,125 | $ | 30,657 | $ | 488,604 | |||||||||||||||||||||||||
| | | | | | | | | | | | | | | | ||||||||||||||||||||
| | Investments | |||||||||||||||||||||||||||||||||
| | Senior | | Unitranche | | Junior | | Equity | | Total Level 3 | |||||||||||||||||||||||||
| | secured loans | | secured loans | | secured loans | | securities | | investments | |||||||||||||||||||||||||
Balance as of March 31, 2022 |
| $ | 418,798 |
| $ | 34,785 |
| $ | 19,521 |
| $ | 30,930 |
| $ | 504,034 | ||||||||||||||||||||
| Net realized gain (loss) on investments | (9,435 | ) | — | — | — | (9,435 | ) | |
| (12) | |
| — | |
| — | |
| 32 | |
| 20 | |||||||||||||
| Net change in unrealized gain (loss) on investments | 11,209 | (904 | ) | (47 | ) | (112 | ) | 10,146 | |
| (4,674) | |
| (2,480) | |
| (90) | |
| (1,844) | |
| (9,088) | ||||||||||||
| Purchases of investments and other adjustments to cost (1) | 73,696 | 20 | 8,479 | 3,212 | 85,407 | |
| 20,190 | |
| 1,878 | |
| 314 | |
| 42 | |
| 22,424 | |||||||||||||||
| Proceeds from principal payments and sales of investments (2) | (54,737 | ) | (196 | ) | (7,376 | ) | — | (62,309 | ) | |
| (19,058) | |
| (69) | |
| — | |
| (323) | |
| (19,450) | |||||||||||
| Reclassifications (3) | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Balance as of September 30, 2021 | $ | 425,055 | $ | 44,420 | $ | 9,181 | $ | 33,757 | $ | 512,413 | |||||||||||||||||||||||||
Balance as of June 30, 2022 | | $ | 415,244 | | $ | 34,114 | | $ | 19,745 | | $ | 28,837 | | $ | 497,940 | ||||||||||||||||||||
| Investments | ||||||||||||||||||||
| Senior secured loans | Unitranche secured loans | Junior secured loans | Equity securities | Total investments | ||||||||||||||||
| Balance as of December 31, 2020 | $ | 405,224 | $ | 64,040 | $ | 14,592 | $ | 23,899 | $ | 507,755 | ||||||||||
| Net realized gain (loss) on investments | (9,610 | ) | — | — | 892 | (8,718 | ) | |||||||||||||
| Net change in unrealized gain (loss) on investments | 14,820 | (4,975 | ) | 40 | 8,048 | 17,933 | ||||||||||||||
| Purchases of investments and other adjustments to cost (1) | 174,934 | 1,475 | 8,647 | 3,948 | 189,004 | |||||||||||||||
| Proceeds from principal payments and sales of investments (2) | (160,313 | ) | (16,120 | ) | (14,098 | ) | (3,030 | ) | (193,561 | ) | ||||||||||
| Reclassifications (3) | — | — | — | — | — | |||||||||||||||
| Balance as of September 30, 2021 | $ | 425,055 | $ | 44,420 | $ | 9,181 | $ | 33,757 | $ | 512,413 | ||||||||||
| | | | | | | | | | | | | | | |
| | Investments | |||||||||||||
| | Senior | | Unitranche | | Junior | | Equity | | Total Level 3 | |||||
| | secured loans | | secured loans | | secured loans | | securities | | investments | |||||
Balance as of December 31, 2021 |
| $ | 423,700 |
| $ | 51,494 |
| $ | 14,364 |
| $ | 29,969 |
| $ | 519,527 |
Net realized gain (loss) on investments | |
| (21) | |
| (94) | |
| — | |
| 32 | |
| (83) |
Net change in unrealized gain (loss) on investments | |
| (5,050) | |
| (5,156) | |
| (322) | |
| (1,510) | |
| (12,038) |
Purchases of investments and other adjustments to cost (1) | |
| 36,580 | |
| 3,238 | |
| 5,703 | |
| 669 | |
| 46,190 |
Proceeds from principal payments and sales of investments (2) | |
| (39,965) | |
| (15,368) | |
| — | |
| (323) | |
| (55,656) |
Balance as of June 30, 2022 | | $ | 415,244 | | $ | 34,114 | | $ | 19,745 | | $ | 28,837 | | $ | 497,940 |
| (1) | Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest. |
| (2) | Represents net proceeds from investments sold and principal paydowns received. |
56
The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and ninesix months ended SeptemberJune 30, 2020:2021:
| | | | | | | | | | | | | | | |
| | Investments | |||||||||||||
| | Senior | | Unitranche | | Junior | | Equity | | Total Level 3 | |||||
| | secured loans | | secured loans | | secured loans | | securities | | investments | |||||
Balance as of March 31, 2021 |
| $ | 392,399 |
| $ | 48,298 |
| $ | 11,999 |
| $ | 27,616 |
| $ | 480,312 |
Net realized gain (loss) on investments | |
| 19 | |
| — | |
| — | |
| 890 | |
| 909 |
Net change in unrealized gain (loss) on investments | |
| 986 | |
| (508) | |
| (199) | |
| 4,669 | |
| 4,948 |
Purchases of investments and other adjustments to cost (1) | |
| 56,342 | |
| 1,031 | |
| — | |
| 449 | |
| 57,822 |
Proceeds from principal payments and sales of investments (2) | |
| (45,424) | |
| (3,321) | |
| (3,675) | |
| (2,967) | |
| (55,387) |
Balance as of June 30, 2021 | | $ | 404,322 | | $ | 45,500 | | $ | 8,125 | | $ | 30,657 | | $ | 488,604 |
| Investments | ||||||||||||||||||||
| Senior secured loans | Unitranche secured loans | Junior secured loans | Equity securities | Total investments | ||||||||||||||||
| Balance as of June 30, 2020 | $ | 449,815 | $ | 54,015 | $ | 12,376 | $ | 11,535 | $ | 527,741 | ||||||||||
| Net realized gain (loss) on investments | (10 | ) | — | — | — | (10 | ) | |||||||||||||
| Net change in unrealized gain (loss) on investments | 6,727 | 170 | 271 | 1,336 | 8,504 | |||||||||||||||
| Purchases of investments and other adjustments to cost (1) | 15,456 | 1,262 | 166 | — | 16,884 | |||||||||||||||
| Proceeds from principal payments and sales of investments (2) | (68,157 | ) | (171 | ) | (48 | ) | — | (68,376 | ) | |||||||||||
| Reclassifications (3) | (2,750 | ) | — | — | 2,750 | — | ||||||||||||||
| Balance as of September 30, 2020 | $ | 401,081 | $ | 55,276 | $ | 12,765 | $ | 15,621 | $ | 484,743 | ||||||||||
| Investments | ||||||||||||||||||||
| Senior secured loans | Unitranche secured loans | Junior secured loans | Equity securities | Total investments | ||||||||||||||||
| Balance as of December 31, 2019 | $ | 475,157 | $ | 76,247 | $ | 13,676 | $ | 8,739 | $ | 573,819 | ||||||||||
| Net realized gain (loss) on investments | 2,335 | 89 | — | 121 | 2,545 | |||||||||||||||
| Net change in unrealized gain (loss) on investments | (21,775 | ) | (10,277 | ) | (529 | ) | 1,901 | (30,680 | ) | |||||||||||
| Purchases of investments and other adjustments to cost (1) | 92,888 | 3,315 | 4,041 | 2,270 | 102,514 | |||||||||||||||
| Proceeds from principal payments and sales of investments (2) | (144,777 | ) | (14,095 | ) | (4,423 | ) | (160 | ) | (163,455 | ) | ||||||||||
| Reclassifications (3) | (2,747 | ) | (3 | ) | — | 2,750 | — | |||||||||||||
| Balance as of September 30, 2020 | $ | 401,081 | $ | 55,276 | $ | 12,765 | $ | 15,621 | $ | 484,743 | ||||||||||
| | | | | | | | | | | | | | | |
| | Investments | |||||||||||||
| | Senior | | Unitranche | | Junior | | Equity | | Total Level 3 | |||||
| | secured loans | | secured loans | | secured loans | | securities | | investments | |||||
Balance as of December 31, 2020 |
| $ | 405,224 |
| $ | 64,040 |
| $ | 14,592 |
| $ | 23,899 |
| $ | 507,755 |
Net realized gain (loss) on investments | |
| (175) | |
| — | |
| — | |
| 892 | |
| 717 |
Net change in unrealized gain (loss) on investments | |
| 3,611 | |
| (4,071) | |
| 87 | |
| 8,160 | |
| 7,787 |
Purchases of investments and other adjustments to cost (1) | |
| 101,238 | |
| 1,455 | |
| 168 | |
| 736 | |
| 103,597 |
Proceeds from principal payments and sales of investments (2) | |
| (105,576) | |
| (15,924) | |
| (6,722) | |
| (3,030) | |
| (131,252) |
Balance as of June 30, 2021 | | $ | 404,322 | | $ | 45,500 | | $ | 8,125 | | $ | 30,657 | | $ | 488,604 |
| (1) | Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest. |
| (2) | Represents net proceeds from investments sold and principal paydowns received. |
The total net change in unrealized gain (loss) on investments included on the consolidated statements of operations for the three and ninesix months ended SeptemberJune 30, 2021,2022, attributable to Level 3 investments still held at SeptemberJune 30, 2021,2022, was $973($7,506) and $8,791,($10,226), respectively. The total net change in unrealized gain (loss) on investments included on the consolidated statements of operations for the three and ninesix months ended SeptemberJune 30, 2020,2021, attributable to Level 3 investments still held at SeptemberJune 30, 2020,2021, was $8,579$5,602 and ($19,939),$8,339, respectively. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of Level 3 as of the beginning of the period in which the reclassifications occur. There were no transfers among Levels 1, 2 and 3 during the three and ninesix months ended SeptemberJune 30, 20212022 and 2020.
2021.
Significant Unobservable Inputs
ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. Disclosure of this information is not required in circumstances where a valuation (unadjusted) is obtained from a third-party pricing service and the information regarding the unobservable inputs is not reasonably available to the Company and as such, the disclosures provided below exclude those investments valued in that manner. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.
57
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of SeptemberJune 30, 20212022 were as follows:
| Weighted | ||||||||||||||||||||
| Unobservable | Average | Range | ||||||||||||||||||
| Fair Value | Valuation Technique | Input | Mean | Minimum | Maximum | |||||||||||||||
| Senior secured loans | $ | 294,098 | Discounted cash flow | EBITDA multiples | 7.3 | x | 4.3 | x | 19.5 | x | ||||||||||
| Market yields | 9.4 | % | 5.3 | % | 20.0 | % | ||||||||||||||
| Senior secured loans | 83,464 | Discounted cash flow | Revenue multiples | 6.4 | x | 0.5 | x | 18.5 | x | |||||||||||
| Market yields | 8.3 | % | 5.3 | % | 16.8 | % | ||||||||||||||
| Senior secured loans | 22,789 | Enterprise value | Book value multiples | 1.5 | x | 1.5 | x | 1.5 | x | |||||||||||
| Senior secured loans | 16,485 | Enterprise value | Revenue multiples | 2.4 | x | 0.7 | x | 2.9 | x | |||||||||||
| Senior secured loans | 3,727 | Liquidation | Probability weighting of alternative outcomes | 77.3 | % | 2.2 | % | 100.0 | % | |||||||||||
| Unitranche secured loans | 38,279 | Discounted cash flow | EBITDA multiples | 8.9 | x | 5.8 | x | 11.0 | x | |||||||||||
| Market yields | 8.8 | % | 7.5 | % | 13.3 | % | ||||||||||||||
| Unitranche secured loans | 6,141 | Enterprise value | Revenue multiples | 0.6 | x | 0.6 | x | 0.6 | x | |||||||||||
| Junior secured loans | 7,105 | Discounted cash flow | Market yields | 19.2 | % | 13.8 | % | 25.6 | % | |||||||||||
| Junior secured loans | 1,500 | Discounted cash flow | Revenue multiples | 16.3 | x | 16.3 | x | 16.3 | x | |||||||||||
| Market yields | 12.0 | % | 12.0 | % | 12.0 | % | ||||||||||||||
| Junior secured loans | 576 | Liquidation | Probability weighting of alternative outcomes | 69.1 | % | 69.1 | % | 69.1 | % | |||||||||||
| Equity securities | 20,651 | Enterprise value | EBITDA multiples | 8.4 | x | 4.8 | x | 16.5 | x | |||||||||||
| Equity securities | 3,546 | Enterprise value | Revenue multiples | 5.1 | x | 4.4 | x | 12.3 | x | |||||||||||
| Equity securities | 3,272 | Liquidation | Probability weighting of alternative outcomes | 34.9 | % | 34.9 | % | 34.9 | % | |||||||||||
| Equity securities | 729 | Discounted cash flow | EBITDA multiples | 13.3 | x | 13.3 | x | 13.3 | x | |||||||||||
| Market yields | 12.3 | % | 12.3 | % | 12.3 | % | ||||||||||||||
| Equity securities | 350 | Enterprise value | Tangible book value multiples | 1.5 | x | 1.5 | x | 1.5 | x | |||||||||||
| Equity securities | 204 | Option pricing model | Volatility | 42.5 | % | 42.5 | % | 42.5 | % | |||||||||||
| Total Level 3 Assets | $ | 502,916 | (1) | |||||||||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | Weighted |
| | | |
|
| | | | | | | Unobservable | | Average | | Range |
| ||
|
| Fair Value |
| Valuation Technique |
| Input |
| Mean |
| Minimum |
| Maximum |
| |
Assets: | | | | | | | | | | | | | |
|
Senior secured loans | | $ | 258,381 |
| Discounted cash flow |
| EBITDA multiples |
| 10.2x |
| 4.0x |
| 36.5x | |
| |
| |
| | | Market yields | | 10.9 | % | 4.4 | % | 20.0 | % |
Senior secured loans | |
| 103,333 |
| Discounted cash flow |
| Revenue multiples |
| 4.4x |
| 0.6x |
| 12.0x | |
| |
| |
| | | Market yields | | 12.2 | % | 7.9 | % | 20.1 | % |
Senior secured loans | |
| 22,345 |
| Enterprise value |
| EBITDA multiples |
| 9.7x |
| 6.4x |
| 11.0x | |
Senior secured loans | |
| 21,985 |
| Enterprise value |
| Book value multiples |
| 1.2x |
| 1.2x |
| 1.2x | |
Senior secured loans | |
| 5,908 |
| Enterprise value |
| Revenue multiples |
| 2.5x |
| 2.5x |
| 2.5x | |
Senior secured loans | |
| 2,149 |
| Liquidation |
| Probability weighting of alternative outcomes |
| 84.4 | % | 39.3 | % | 100.0 | % |
Unitranche secured loans | |
| 30,584 |
| Discounted cash flow |
| EBITDA multiples |
| 8.5x |
| 6.5x |
| 11.5x | |
| |
| |
| | | Market yields | | 9.3 | % | 8.3 | % | 11.4 | % |
Unitranche secured loans | |
| 3,530 |
| Discounted cash flow |
| Revenue multiples |
| 9.0x |
| 5.8x |
| 12.5x | |
| |
| |
| |
| Market yields |
| 8.9 | % | 7.6 | % | 10.5 | % |
Junior secured loans | |
| 19,165 |
| Discounted cash flow |
| Market yields |
| 16.1 | % | 10.5 | % | 27.6 | % |
Junior secured loans | |
| 580 |
| Liquidation |
| Probability weighting of alternative outcomes |
| 69.6 | % | 69.6 | % | 69.6 | % |
Equity securities | |
| 15,548 |
| Enterprise value |
| EBITDA multiples |
| 7.6x | | 4.0x | | 16.0x | |
Equity securities | |
| 7,468 |
| Enterprise value |
| Revenue multiples |
| 3.1x |
| 0.7x |
| 11.3x | |
Equity securities | |
| 2,295 |
| Liquidation |
| Probability weighting of alternative outcomes |
| 20.4 | % | 20.4 | % | 20.4 | % |
Equity securities | |
| 418 |
| Discounted cash flow |
| EBITDA multiples |
| 7.0x |
| 7.0x |
| 7.0x | |
| |
| |
| | | Market yields | | 25.0 | % | 25.0 | % | 25.0 | % |
Equity securities | |
| 209 |
| Option pricing model |
| Volatility |
| 46.8 | % | 46.8 | % | 46.8 | % |
Total Level 3 Assets | | $ | 493,898 | (1) | |
|
|
|
|
|
|
|
| |
| (1) | Excludes loans of |
58
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of December 31, 20202021 were as follows:
| Fair | Valuation | Weighted Average | Range | |||||||||||||||||
| Value | Technique | Unobservable Input | Mean | Minimum | Maximum | |||||||||||||||
| Assets: | ||||||||||||||||||||
| Senior secured loans | $ | 271,926 | Discounted cash flow | EBITDA multiples | 7.5 | x | 2.8 | x | 16.6 | x | ||||||||||
| Market yields | 9.5 | % | 6.2 | % | 18.8 | % | ||||||||||||||
| Senior secured loans | 74,479 | Discounted cash flow | Revenue multiples | 4.8 | x | 0.5 | x | 10.5 | x | |||||||||||
| Market yields | 9.2 | % | 6.1 | % | 18.5 | % | ||||||||||||||
| Senior secured loans | 24,271 | Enterprise value | Book value multiples | 2.0 | x | 2.0 | x | 2.0 | x | |||||||||||
| Senior secured loans | 15,515 | Enterprise value | Revenue multiples | 2.0 | x | 0.7 | x | 2.4 | x | |||||||||||
| Senior secured loans | 7,525 | Liquidation | Probability weighting of alternative outcomes | 63.2 | % | 1.1 | % | 100.0 | % | |||||||||||
| Senior secured loans | 6,944 | Enterprise value | EBITDA multiples | 8.0 | x | 8.0 | x | 8.0 | x | |||||||||||
| Unitranche secured loans | 52,476 | Discounted cash flow | EBITDA multiples | 9.7 | x | 8.0 | x | 12.5 | x | |||||||||||
| Market yields | 9.3 | % | 7.5 | % | 12.8 | % | ||||||||||||||
| Unitranche secured loans | 9,800 | Discounted cash flow | Revenue multiples | 0.7 | x | 0.7 | x | 0.7 | x | |||||||||||
| Market yields | 10.7 | % | 10.5 | % | 11.0 | % | ||||||||||||||
| Unitranche secured loans | 1,764 | Enterprise value | Revenue multiples | 0.7 | x | 0.7 | x | 0.7 | x | |||||||||||
| Junior secured loans | 3,886 | Discounted cash flow | Market yields | 10.0 | % | 10.0 | % | 10.0 | % | |||||||||||
| Junior secured loans | 762 | Liquidation | Probability weighting of alternative outcomes | 91.5 | % | 91.5 | % | 91.5 | % | |||||||||||
| Equity securities | 10,865 | Enterprise value | EBITDA multiples | 7.6 | x | 2.8 | x | 15.3 | x | |||||||||||
| Equity securities | 6,771 | Enterprise value | Revenue multiples | 1.3 | x | 0.5 | x | 11.0 | x | |||||||||||
| Equity securities | 5,117 | Liquidation | Probability weighting of alternative outcomes | 54.6 | % | 54.6 | % | 54.6 | % | |||||||||||
| Equity securities | 87 | Option pricing model | Volatility | 70.0 | % | 70.0 | % | 70.0 | % | |||||||||||
| Total Level 3 Assets | $ | 492,188 | (1) | |||||||||||||||||
| | | | | | | | | | | | | | |
|
| | |
| |
| |
| |
| | | |
|
| | | | | | | | | Weighted | | |
| ||
| | Fair | | | | Unobservable | | Average | | Range |
| |||
| | Value | | Valuation Technique | | Input | | Mean | | Minimum | | Maximum |
| |
Assets: |
| |
|
|
|
|
|
|
|
|
|
|
| |
Senior secured loans | | $ | 305,252 |
| Discounted cash flow |
| EBITDA multiples |
| 7.7 | x | 5.0 | x | 20.0 | x |
| |
|
|
|
|
| Market yields |
| 9.6 | % | 5.3 | % | 20.0 | % |
Senior secured loans | |
| 79,913 |
| Discounted cash flow |
| Revenue multiples |
| 6.5 | x | 0.5 | x | 13.0 | x |
| |
| |
| | | Market yields | | 8.4 | % | 5.2 | % | 13.1 | % |
Senior secured loans | |
| 23,484 |
| Enterprise value |
| Book value multiples |
| 1.5 | x | 1.5 | x | 1.5 | x |
Senior secured loans | |
| 5,771 |
| Enterprise value |
| Revenue multiples |
| 2.8 | x | 2.8 | x | 2.8 | x |
Senior secured loans | |
| 5,111 |
| Enterprise value |
| EBITDA multiples |
| 6.5 | x | 6.5 | x | 6.5 | x |
Senior secured loans | |
| 3,026 |
| Liquidation |
| Probability weighting of alternative outcomes |
| 88.2 | % | 48.2 | % | 100.0 | % |
Unitranche secured loans | |
| 45,072 |
| Discounted cash flow |
| EBITDA multiples |
| 8.4 | x | 5.5 | x | 11.0 | x |
| |
| | | | | Market yields |
| 8.5 | % | 7.3 | % | 13.3 | % |
Unitranche secured loans | |
| 4,950 |
| Enterprise value |
| Revenue multiples |
| 0.6 | x | 0.6 | x | 0.6 | x |
Unitranche secured loans | |
| 1,472 |
| Discounted cash flow |
| Revenue multiples |
| 14.0 | x | 14.0 | x | 14.0 | x |
| |
| | | | | Market yields | | 8.3 | % | 8.3 | % | 8.3 | % |
Junior secured loans | |
| 12,266 |
| Discounted cash flow |
| Market yields |
| 15.8 | % | 8.0 | % | 25.1 | % |
Junior secured loans | |
| 1,522 |
| Discounted cash flow |
| Revenue multiples |
| 15.0 | x | 15.0 | x | 15.0 | x |
| |
| | | | | Market yields |
| 2.0 | % | 2.0 | % | 2.0 | % |
Junior secured loans | |
| 576 |
| Liquidation |
| Probability weighting of alternative outcomes |
| 69.1 | % | 69.1 | % | 69.1 | % |
Equity securities | |
| 15,688 |
| Enterprise value |
| EBITDA multiples |
| 5.6 | x | 4.5 | x | 15.1 | x |
Equity securities | |
| 6,448 |
| Enterprise value |
| Revenue multiples |
| 4.8 | x | 0.6 | x | 12.3 | x |
Equity securities | |
| 2,281 |
| Liquidation |
| Probability weighting of alternative outcomes |
| 24.4 | % | 24.4 | % | 24.4 | % |
Equity securities | |
| 714 |
| Discounted cash flow |
| EBITDA multiples |
| 13.3 | x | 13.3 | x | 13.3 | x |
| |
| |
| | | Market yields | | 12.3 | % | 12.3 | % | 12.3 | % |
Equity securities | |
| 455 |
| Option pricing model |
| Volatility |
| 42.5 | % | 42.5 | % | 42.5 | % |
Equity securities | |
| 264 |
| Enterprise value |
| Tangible book value multiples |
| 1.5 | x | 1.5 | x | 1.5 | x |
Total Level 3 Assets | | $ | 514,265 | (1) | | | | | | | | | | |
| (1) | Excludes loans of |
The significant unobservable input used in the income approach of fair value measurement of the Company’s investments is the discount rate used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. Increases (decreases) in the discount rate would result in a decrease (increase) in the fair value estimate of the investment. Included in the consideration and selection of discount rates are the following factors: risk of default, rating of the investment and comparable investments, and call provisions.
59
The significant unobservable inputs used in the market approach of fair value measurement of the Company’s investments are the market multiples of EBITDA or revenue of the comparable guideline public companies. The Company selects a population of public companies for each investment with similar operations and attributes of the portfolio company. Using these guideline public companies’ data, a range of multiples of enterprise value to EBITDA or revenue is calculated. The Company selects percentages from the range of multiples for purposes of determining the portfolio company’s estimated enterprise value based on said multiple and generally the latest twelve months EBITDA or revenue of the portfolio company (or other meaningful measure). Increases (decreases) in the multiple will result in an increase (decrease) in enterprise value, resulting in an increase (decrease) in the fair value estimate of the investment.
Other Financial Assets and Liabilities
ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company believes that the carrying amounts of its other financial instruments such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such instruments. Fair value of the Company’s revolving credit facility is estimated by discounting remaining payments using applicable market rates or market quotes for similar instruments at the measurement date, if applicable. As of both SeptemberJune 30, 20212022 and December 31, 2020,2021, the Company believes that the carrying value of its revolving credit facility approximates fair value. The senior unsecured notes (“2026 NotesNotes”) are carried at cost and with their longer maturity dates, fair value is estimated by discounting remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the notes. As of SeptemberJune 30, 2022 and December 31, 2021, the Company believes that the carrying value of the 2026 Notes approximates fair value. SBA debentures arewere carried at cost and with their longer maturity dates, fair value iswas estimated by discounting remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the SBA debentures. As of both September 30, 2021 and December 31, 2020,2021, the Company believesbelieved that the carrying value of the SBA debentures approximatesapproximated fair value.
60
Note 5. Transactions with Affiliated Companies
An affiliated company is a company in which the Company has an ownership interest of 5% or more of its voting securities. A controlled affiliate company is a company in which the Company has an ownership interest of more than 25% of its voting securities. Please see the Company’s consolidated schedule of investments for the type of investment, principal amount, interest rate including the spread, and the maturity date. Transactions related to the Company’s investments with affiliates for the ninesix months ended SeptemberJune 30, 20212022 and 20202021 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | Sales and | | PIK | | | | | | | | Net | | | | |||
| | Fair value at | | Transfers | | Purchases | | paydowns | | interest | | Discount | | Net realized | | unrealized | | Fair value at | |||||||||
Portfolio Company | | December 31, 2021 |
| in (out) |
| (cost) |
| (cost) |
| (cost) |
| accretion |
| gain (loss) |
| gain (loss) |
| June 30, 2022 | |||||||||
Non-controlled affiliate company investment: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
American Community Homes, Inc. | | $ | 10,457 | | $ | — | | $ | — | | $ | — | | $ | 466 | | $ | — | | $ | — | | $ | (804) | | $ | 10,119 |
American Community Homes, Inc. |
| | 4,753 |
| | — | | | — | | | — | | | 325 | | | — | | | — | | | (373) | | | 4,705 |
American Community Homes, Inc. |
| | 634 |
| | — | | | — | | | — | | | 28 | | | — | | | — | | | (49) | | | 613 |
American Community Homes, Inc. |
| | 3,164 |
| | — | | | — | | | — | | | 104 | | | — | | | — | | | (1,012) | | | 2,256 |
American Community Homes, Inc. |
| | 4,357 |
| | — | | | — | | | — | | | 192 | | | — | | | — | | | (373) | | | 4,176 |
American Community Homes, Inc. |
| | 20 |
| | — | | | — | | | — | | | 1 | | | — | | | — | | | (1) | | | 20 |
American Community Homes, Inc. |
| | 99 |
| | — | | | — | | | — | | | 4 | | | — | | | — | | | (7) | | | 96 |
American Community Homes, Inc. (Revolver) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) |
| | 264 |
| | — | | | — | | | — | | | — | | | — | | | — | | | (264) | | | — |
|
| | 23,748 |
| | — | | | — | | | — | | | 1,120 | | | — | | | — | | | (2,883) | | | 21,985 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ascent Midco, LLC |
| | 6,392 |
| | — | | | — | | | (87) | | | — | | | 14 | | | — | | | (15) | | | 6,304 |
Ascent Midco, LLC (Revolver) |
| | — |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Ascent Midco, LLC (2,032,258 Class A units) |
| | 2,554 |
| | — | | | — | | | — | | | — | | | — | | | — | | | (936) | | | 1,618 |
|
| | 8,946 |
| | — | | | — | | | (87) | | | — | | | 14 | | | — | | | (951) | | | 7,922 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Curion Holdings, LLC |
| | 4,561 |
| | — | | | — | | | (97) | | | — | | | — | | | — | | | 1,442 | | | 5,906 |
Curion Holdings, LLC (Revolver) |
| | 550 |
| | — | | | 92 | | | (470) | | | — | | | — | | | — | | | 165 | | | 337 |
Curion Holdings, LLC (Junior secured loan) |
| | — |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Curion Holdings, LLC (Junior secured loan) |
| | — |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Curion Holdings, LLC (58,779 shares of common stock) |
| | — |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
|
| | 5,111 |
| | — | | | 92 | | | (567) | | | — | | | — | | | — | | | 1,607 | | | 6,243 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Familia Dental Group Holdings, LLC (1,158 Class A units) |
| | 1,919 |
| | — | | | 183 | | | — | | | — | | | — | | | — | | | 653 | | | 2,755 |
|
| | 1,919 |
| | — | | | 183 | | | — | | | — | | | — | | | — | | | 653 | | | 2,755 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
HFZ Capital Group, LLC |
| | 15,084 |
| | — | | | — | | | — | | | — | | | — | | | — | | | 533 | | | 15,617 |
HFZ Capital Group, LLC |
| | 5,420 |
| | — | | | — | | | — | | | — | | | — | | | — | | | 191 | | | 5,611 |
MC Asset Management (Corporate), LLC |
| | 7,154 |
| | — | | | — | | | — | | | 590 | | | — | | | — | | | — | | | 7,744 |
MC Asset Management (Corporate), LLC (Delayed Draw) |
| | 850 |
| | — | | | — | | | — | | | 70 | | | — | | | — | | | — | | | 920 |
MC Asset Management (Corporate), LLC (15.9% interests) |
| | 644 |
| | — | | | — | | | — | | | — | | | — | | | — | | | (205) | | | 439 |
|
| | 29,152 |
| | — | | | — | | | — | | | 660 | | | — | | | — | | | 519 | | | 30,331 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mnine Holdings, Inc. |
| | 5,771 |
| | — | | | — | | | — | | | 137 | | | 9 | | | — | | | (9) | | | 5,908 |
Mnine Holdings, Inc. (6,400 Class B units) |
| | — |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
|
| | 5,771 |
| | — | | | — | | | — | | | 137 | | | 9 | | | — | | | (9) | | | 5,908 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
NECB Collections, LLC (Revolver) |
| | 632 |
| | — | | | — | | | — | | | — | | | — | | | — | | | (117) | | | 515 |
NECB Collections, LLC (20.8% of units) |
| | — |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
|
| | 632 |
| | — | | | — | | | — | | | — | | | — | | | — | | | (117) | | | 515 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Second Avenue SFR Holdings II LLC (Revolver) (1) |
| | 2,104 |
| | — | | | 488 | | | — | | | — | | | — | | | — | | | — | | | 2,592 |
|
| | 2,104 |
| | — | | | 488 | | | — | | | — | | | — | | | — | | | — | | | 2,592 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
SFR Holdco, LLC (Junior secured loan) |
| | 5,850 |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 5,850 |
SFR Holdco, LLC (24.4% of interests) |
| | 3,900 |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,900 |
|
| | 9,750 |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 9,750 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
TJ Management HoldCo, LLC (Revolver) |
| | — |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
TJ Management HoldCo, LLC (16 shares of common stock) |
| | 3,148 |
| | — | | | — | | | — | | | — | | | — | | | — | | | (118) | | | 3,030 |
|
| | 3,148 |
| | — | | | — | | | — | | | — | | | — | | | — | | | (118) | | | 3,030 |
Total non-controlled affiliate company investments | | $ | 90,281 | | $ | — | | $ | 763 | | $ | (654) | | $ | 1,917 | | $ | 23 | | $ | — | | $ | (1,299) | | $ | 91,031 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Controlled affiliate company investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
MRCC Senior Loan Fund I, LLC | | $ | 41,125 | | $ | — | | $ | 500 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (4,074) | | $ | 37,551 |
| |
| 41,125 | |
| — | |
| 500 | |
| — | |
| — | |
| — | |
| — | |
| (4,074) | | | 37,551 |
Total Controlled affiliate company investments | | $ | 41,125 | | $ | — | | $ | 500 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (4,074) | | $ | 37,551 |
61
| Portfolio Company | Fair value at December 31, 2020 | Transfers in (out) | Purchases (cost) | Sales and paydowns (cost) | PIK interest (cost) | Discount accretion | Net realized gain (loss) | Net unrealized gain (loss) | Fair value at September 30, 2021 | |||||||||||||||||||||||||||
| Non-controlled affiliate company investment: | ||||||||||||||||||||||||||||||||||||
| American Community Homes, Inc. | $ | 9,401 | $ | — | $ | — | $ | (90 | ) | $ | 848 | $ | — | $ | — | $ | — | $ | 10,159 | |||||||||||||||||
| American Community Homes, Inc. | 6,239 | — | — | (2,229 | ) | 556 | — | — | — | 4,566 | ||||||||||||||||||||||||||
| American Community Homes, Inc. | 825 | — | — | (838 | ) | 13 | — | — | — | — | ||||||||||||||||||||||||||
| American Community Homes, Inc. | 570 | — | — | (5 | ) | 51 | — | — | — | 616 | ||||||||||||||||||||||||||
| American Community Homes, Inc. | 335 | — | — | (341 | ) | 6 | — | — | — | — | ||||||||||||||||||||||||||
| American Community Homes, Inc. | 2,915 | — | — | (20 | ) | 189 | — | — | 14 | 3,098 | ||||||||||||||||||||||||||
| American Community Homes, Inc. | 3,879 | — | — | (37 | ) | 350 | — | — | 42 | 4,234 | ||||||||||||||||||||||||||
| American Community Homes, Inc. | 18 | — | — | — | 2 | — | — | — | 20 | |||||||||||||||||||||||||||
| American Community Homes, Inc. | 89 | — | — | (1 | ) | 8 | — | — | — | 96 | ||||||||||||||||||||||||||
| American Community Homes, Inc. (Revolver) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) | — | — | — | — | — | — | — | 350 | 350 | |||||||||||||||||||||||||||
| 24,271 | — | — | (3,561 | ) | 2,023 | — | — | 406 | 23,139 | |||||||||||||||||||||||||||
| Ascent Midco, LLC | 6,997 | — | — | (513 | ) | — | 19 | — | (30 | ) | 6,473 | |||||||||||||||||||||||||
| Ascent Midco, LLC (Delayed Draw) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Ascent Midco, LLC (Revolver) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Ascent Midco, LLC (2,032,258 Class A units) | 3,016 | — | — | — | — | — | — | 95 | 3,111 | |||||||||||||||||||||||||||
| 10,013 | — | — | (513 | ) | — | 19 | — | 65 | 9,584 | |||||||||||||||||||||||||||
| Curion Holdings, LLC | 3,159 | — | — | — | — | — | — | 731 | 3,890 | |||||||||||||||||||||||||||
| Curion Holdings, LLC (Revolver) | 820 | — | — | — | — | — | — | 10 | 830 | |||||||||||||||||||||||||||
| Curion Holdings, LLC (Junior secured loan) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Curion Holdings, LLC (Junior secured loan) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Curion Holdings, LLC (58,779 shares of common stock) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 3,979 | — | — | — | — | — | — | 741 | 4,720 | ||||||||||||||||||||||||||||
| Familia Dental Group Holdings, LLC (1,052 Class A units) | 3,118 | — | — | — | — | — | — | (677 | ) | 2,441 | ||||||||||||||||||||||||||
| 3,118 | — | — | — | — | — | — | (677 | ) | 2,441 | |||||||||||||||||||||||||||
| HFZ Capital Group, LLC | 13,106 | — | — | — | — | — | — | 1,708 | 14,814 | |||||||||||||||||||||||||||
| HFZ Capital Group, LLC | 4,709 | — | — | — | — | — | — | 613 | 5,322 | |||||||||||||||||||||||||||
| MC Asset Management (Corporate), LLC | — | — | 6,423 | — | 450 | — | — | — | 6,873 | |||||||||||||||||||||||||||
| MC Asset Management (Corporate), LLC (Delayed Draw) | — | — | 793 | — | 23 | — | — | — | 816 | |||||||||||||||||||||||||||
| MC Asset Management (Corporate), LLC (15.9% interests) | 785 | — | — | — | — | — | — | (65 | ) | 720 | ||||||||||||||||||||||||||
| MC Asset Management (Industrial), LLC | 11,579 | — | — | (11,365 | ) | 1,170 | 1 | — | (884 | ) | 501 | |||||||||||||||||||||||||
| 30,179 | — | 7,216 | (11,365 | ) | 1,643 | 1 | — | 1,372 | 29,046 | |||||||||||||||||||||||||||
| Incipio, LLC (1) | 1,764 | — | — | — | — | — | — | (1,764 | ) | — | ||||||||||||||||||||||||||
| Incipio, LLC (1) | 4,227 | (1,562 | ) | — | — | 48 | — | — | (2,713 | ) | — | |||||||||||||||||||||||||
| Incipio, LLC (1) | 1,805 | (1,732 | ) | — | — | 15 | — | — | (88 | ) | — | |||||||||||||||||||||||||
| Incipio, LLC (1) | 761 | (730 | ) | — | — | 6 | — | — | (37 | ) | — | |||||||||||||||||||||||||
| Incipio, LLC (1) | 1,519 | (1,458 | ) | — | — | 13 | — | — | (74 | ) | — | |||||||||||||||||||||||||
| Incipio, LLC (1) | 1,488 | (1,527 | ) | 108 | — | 9 | — | — | (78 | ) | — | |||||||||||||||||||||||||
| Incipio, LLC (Junior secured loan) (1) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Incipio, LLC (Junior secured loan) (1) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Incipio, LLC (1,774 shares of Series C common units) (1) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 11,564 | (7,009 | ) | 108 | — | 91 | — | — | (4,754 | ) | — | ||||||||||||||||||||||||||
| Luxury Optical Holdings Co. | 1,430 | — | — | — | 134 | — | — | 38 | 1,602 | |||||||||||||||||||||||||||
| Luxury Optical Holdings Co. (Delayed Draw) | 624 | — | 1,729 | (93 | ) | — | — | — | 93 | 2,353 | ||||||||||||||||||||||||||
| Luxury Optical Holdings Co. (Revolver) | 66 | — | — | — | 6 | — | — | 2 | 74 | |||||||||||||||||||||||||||
| Luxury Optical Holdings Co. (91 preferred units) | 2,476 | — | — | — | 694 | — | — | 434 | 3,604 | |||||||||||||||||||||||||||
| Luxury Optical Holdings Co. (86 shares of common stock) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 4,596 | — | 1,729 | (93 | ) | 834 | — | — | 567 | 7,633 | |||||||||||||||||||||||||||
| Mnine Holdings, Inc. | 12,356 | — | — | (191 | ) | 449 | 27 | — | (46 | ) | 12,595 | |||||||||||||||||||||||||
| Mnine Holdings, Inc. (6,400 Class B units) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 12,356 | — | — | (191 | ) | 449 | 27 | — | (46 | ) | 12,595 | ||||||||||||||||||||||||||
| NECB Collections, LLC (Revolver) | 834 | — | — | — | — | — | — | (147 | ) | 687 | ||||||||||||||||||||||||||
| NECB Collections, LLC (20.8% of units) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 834 | — | — | — | — | — | — | (147 | ) | 687 | |||||||||||||||||||||||||||
| SHI Holdings, Inc. | 188 | — | — | — | — | — | — | (57 | ) | 131 | ||||||||||||||||||||||||||
| SHI Holdings, Inc. (Revolver) | 297 | — | — | — | — | — | — | (89 | ) | 208 | ||||||||||||||||||||||||||
| SHI Holdings, Inc. (24 shares of common stock) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| 485 | — | — | — | — | — | — | (146 | ) | 339 | |||||||||||||||||||||||||||
| Second Avenue SFR Holdings II LLC (Revolver) | — | — | 642 | — | — | — | — | — | 642 | |||||||||||||||||||||||||||
| Second Avenue SFR Holdings II LLC (Delayed Draw) | — | — | 1,101 | — | — | — | — | — | 1,101 | |||||||||||||||||||||||||||
| Second Avenue SFR Holdings II LLC (24.4 % of interests) | — | — | 734 | — | — | — | — | — | 734 | |||||||||||||||||||||||||||
| — | — | 2,477 | — | — | — | — | — | 2,477 | ||||||||||||||||||||||||||||
| Summit Container Corporation | 3,204 | — | — | (3,019 | ) | — | — | (250 | ) | 65 | — | |||||||||||||||||||||||||
| Summit Container Corporation (Revolver) | 1,654 | — | 5,402 | (7,059 | ) | — | — | — | 3 | — | ||||||||||||||||||||||||||
| Summit Container Corporation (warrant to purchase up to 19.5% of the equity) | 139 | — | — | — | — | — | — | (139 | ) | — | ||||||||||||||||||||||||||
| 4,997 | — | 5,402 | (10,078 | ) | — | — | (250 | ) | (71 | ) | — | |||||||||||||||||||||||||
| TJ Management HoldCo, LLC (Revolver) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| TJ Management HoldCo, LLC (16 shares of common stock) | 3,323 | — | — | (755 | ) | — | — | — | 517 | 3,085 | ||||||||||||||||||||||||||
| 3,323 | — | — | (755 | ) | — | — | — | 517 | 3,085 | |||||||||||||||||||||||||||
| Total non-controlled affiliate company investments | $ | 109,715 | $ | (7,009 | ) | $ | 16,932 | $ | (26,556 | ) | $ | 5,040 | $ | 47 | $ | (250 | ) | $ | (2,173 | ) | $ | 95,746 | ||||||||||||||
| Controlled affiliate company investments: | ||||||||||||||||||||||||||||||||||||
| MRCC Senior Loan Fund I, LLC | $ | 39,284 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,047 | $ | 41,331 | ||||||||||||||||||
| 39,284 | — | — | — | — | — | — | 2,047 | 41,331 | ||||||||||||||||||||||||||||
| Total controlled affiliate company investments | $ | 39,284 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,047 | $ | 41,331 | ||||||||||||||||||
| Portfolio Company | Fair value at December 31, 2019 | Transfers in (out) | Purchases (cost) | Sales and paydowns (cost) | PIK (cost) | Discount accretion | Net realized gain (loss) | Net unrealized gain (loss) | Fair value at September 30, 2020 | |||||||||||||||||||
| Non-controlled affiliate company investment: | ||||||||||||||||||||||||||||
| American Community Homes, Inc. | $ | 6,764 | $ | — | $ | — | $ | — | $ | 812 | $ | 6 | $ | — | $ | 1,601 | $ | 9,183 | ||||||||||
| American Community Homes, Inc. | 4,289 | — | — | — | 726 | 3 | — | 1,006 | 6,024 | |||||||||||||||||||
| American Community Homes, Inc. | 512 | — | — | — | 168 | 1 | — | 115 | 796 | |||||||||||||||||||
| American Community Homes, Inc. | 410 | — | — | — | 48 | 2 | — | 96 | 556 | |||||||||||||||||||
| American Community Homes, Inc. | 230 | — | — | — | 40 | — | — | 54 | 324 | |||||||||||||||||||
| American Community Homes, Inc. | 1,472 | — | — | — | 236 | — | — | 450 | 2,158 | |||||||||||||||||||
| American Community Homes, Inc. | 2,760 | — | — | — | 391 | — | — | 653 | 3,804 | |||||||||||||||||||
| American Community Homes, Inc. | 11 | — | — | — | 5 | — | — | 2 | 18 | |||||||||||||||||||
| American Community Homes, Inc. | 1,168 | — | — | (1,111 | ) | 17 | — | — | 13 | 87 | ||||||||||||||||||
| American Community Homes, Inc. (Revolver) | — | — | 2,500 | — | 25 | — | — | (120 | ) | 2,405 | ||||||||||||||||||
| American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| 17,616 | — | 2,500 | (1,111 | ) | 2,468 | 12 | — | 3,870 | 25,355 | |||||||||||||||||||
| Ascent Midco, LLC | — | — | 6,860 | (52 | ) | — | 17 | — | 47 | 6,872 | ||||||||||||||||||
| Ascent Midco, LLC (Delayed Draw) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| Ascent Midco, LLC (Revolver) | — | — | 734 | (734 | ) | — | — | — | — | — | ||||||||||||||||||
| Ascent Midco, LLC (2,032,258 Class A units) | — | — | 2,032 | — | — | — | — | 807 | 2,839 | |||||||||||||||||||
| — | — | 9,626 | (786 | ) | — | 17 | — | 854 | 9,711 | |||||||||||||||||||
| Curion Holdings, LLC | 3,279 | — | — | — | — | — | — | (158 | ) | 3,121 | ||||||||||||||||||
| Curion Holdings, LLC (Revolver) | 441 | — | — | — | — | — | — | — | 441 | |||||||||||||||||||
| Curion Holdings, LLC (Junior secured loan) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| Curion Holdings, LLC (Junior secured loan) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| Curion Holdings, LLC (58,779 shares of common stock) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| 3,720 | — | — | — | — | — | — | (158 | ) | 3,562 | |||||||||||||||||||
| Incipio, LLC | 12,343 | — | — | — | 128 | — | — | (9,053 | ) | 3,418 | ||||||||||||||||||
| Incipio, LLC | 3,750 | — | — | — | 362 | — | — | (7 | ) | 4,105 | ||||||||||||||||||
| Incipio, LLC | 1,606 | — | — | — | 154 | — | — | (6 | ) | 1,754 | ||||||||||||||||||
| Incipio, LLC | 686 | — | — | — | 56 | — | — | (3 | ) | 739 | ||||||||||||||||||
| Incipio, LLC | — | — | 1,404 | — | 90 | — | — | (18 | ) | 1,476 | ||||||||||||||||||
| Incipio, LLC (Delayed Draw) | — | — | 1,026 | — | 15 | — | — | (12 | ) | 1,029 | ||||||||||||||||||
| Incipio, LLC (Junior secured loan) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| Incipio, LLC (Junior secured loan) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| Incipio, LLC (1,774 shares of Series C common units) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| 18,385 | — | 2,430 | — | 805 | — | — | (9,099 | ) | 12,521 | |||||||||||||||||||
| Luxury Optical Holdings Co. | 3,457 | — | — | — | — | — | — | (75 | ) | 3,382 | ||||||||||||||||||
| Luxury Optical Holdings Co. (Delayed Draw) | 620 | — | — | — | — | — | — | (4 | ) | 616 | ||||||||||||||||||
| Luxury Optical Holdings Co. (Revolver) | 159 | — | — | — | — | — | — | (3 | ) | 156 | ||||||||||||||||||
| Luxury Optical Holdings Co. (86 shares of common stock) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| 4,236 | — | — | — | — | — | — | (82 | ) | 4,154 | |||||||||||||||||||
| Mnine Holdings, Inc. (2) | — | 10,321 | — | — | 964 | 14 | — | 850 | 12,149 | |||||||||||||||||||
| Mnine Holdings, Inc. (6,400 Class B units) (2) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| — | 10,321 | — | — | 964 | 14 | — | 850 | 12,149 | ||||||||||||||||||||
| NECB Collections, LLC (Revolver) | 1,148 | — | 112 | — | 52 | — | — | — | 1,312 | |||||||||||||||||||
| NECB Collections, LLC (20.8% of units) | 318 | — | — | — | — | — | — | (304 | ) | 14 | ||||||||||||||||||
| 1,466 | — | 112 | — | 52 | — | — | (304 | ) | 1,326 | |||||||||||||||||||
| SHI Holdings, Inc. | 2,459 | — | — | — | — | — | — | (2,314 | ) | 145 | ||||||||||||||||||
| SHI Holdings, Inc. (Revolver) | 3,601 | — | 345 | — | — | — | — | (3,716 | ) | 230 | ||||||||||||||||||
| SHI Holdings, Inc. (24 shares of common stock) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| 6,060 | — | 345 | — | — | — | — | (6,030 | ) | 375 | |||||||||||||||||||
| Summit Container Corporation | 2,971 | — | — | — | — | — | — | 174 | 3,145 | |||||||||||||||||||
| Summit Container Corporation (Revolver) | 5,406 | — | 24,103 | (27,760 | ) | — | — | — | 56 | 1,805 | ||||||||||||||||||
| Summit Container Corporation (warrant to purchase up to 19.5% of the equity) | — | — | — | — | — | — | — | 188 | 188 | |||||||||||||||||||
| 8,377 | — | 24,103 | (27,760 | ) | — | — | — | 418 | 5,138 | |||||||||||||||||||
| TJ Management HoldCo, LLC (Revolver) (3) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| TJ Management HoldCo, LLC (16 shares of common stock) (3) | — | 2,222 | — | — | — | — | — | 1,528 | 3,750 | |||||||||||||||||||
| — | 2,222 | — | — | — | — | — | 1,528 | 3,750 | ||||||||||||||||||||
| Total non-controlled affiliate company investments | $ | 59,860 | $ | 12,543 | $ | 39,116 | $ | (29,657 | ) | $ | 4,289 | $ | 43 | $ | — | $ | (8,153 | ) | $ | 78,041 | ||||||||
| Controlled affiliate company investments: | ||||||||||||||||||||||||||||
| MRCC Senior Loan Fund I, LLC | $ | 42,412 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4,888 | ) | $ | 37,524 | |||||||||
| 42,412 | — | — | — | — | — | — | (4,888 | ) | 37,524 | |||||||||||||||||||
| Total controlled affiliate company investments | $ | 42,412 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4,888 | ) | $ | 37,524 | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Fair value at |
| | |
| | |
| Sales and |
| PIK |
| | |
| Net |
| Net |
| Fair value at | ||||||
| | December | | Transfers | | Purchases | | paydowns | | interest | | Discount | | realized | | unrealized | | June | |||||||||
Portfolio Company | | 31, 2020 | | in (out) | | (cost) | | (cost) | | (cost) | | accretion | | gain (loss) | | gain (loss) | | 30, 2021 | |||||||||
Non-controlled affiliate company investment: |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
American Community Homes, Inc. | | $ | 9,401 | | $ | — | | $ | — | | $ | (90) | | $ | 555 | | $ | — | | $ | — | | $ | — | | $ | 9,866 |
American Community Homes, Inc. | |
| 6,239 | |
| — | |
| — | |
| (2,229) | |
| 374 | |
| — | |
| — | |
| — | |
| 4,384 |
American Community Homes, Inc. | |
| 825 | |
| — | |
| — | |
| (838) | |
| 13 | |
| — | |
| — | |
| — | |
| — |
American Community Homes, Inc. | |
| 570 | |
| — | |
| — | |
| (5) | |
| 33 | |
| — | |
| — | |
| — | |
| 598 |
American Community Homes, Inc. | |
| 335 | |
| — | |
| — | |
| (341) | |
| 6 | |
| — | |
| — | |
| — | |
| — |
American Community Homes, Inc. | |
| 2,915 | |
| — | |
| — | |
| (20) | |
| 125 | |
| — | |
| — | |
| 205 | |
| 3,225 |
American Community Homes, Inc. | |
| 3,879 | |
| — | |
| — | |
| (37) | |
| 229 | |
| — | |
| — | |
| 42 | |
| 4,113 |
American Community Homes, Inc. | |
| 18 | |
| — | |
| — | |
| — | |
| 1 | |
| — | |
| — | |
| — | |
| 19 |
American Community Homes, Inc. | |
| 89 | |
| — | |
| — | |
| (1) | |
| 6 | |
| — | |
| — | |
| — | |
| 94 |
American Community Homes, Inc. (Revolver) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 584 | |
| 584 |
| |
| 24,271 | |
| — | |
| — | |
| (3,561) | |
| 1,342 | |
| — | |
| — | |
| 831 | |
| 22,883 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ascent Midco, LLC | |
| 6,997 | |
| — | |
| — | |
| (496) | |
| — | |
| 14 | |
| — | |
| (24) | |
| 6,491 |
Ascent Midco, LLC (Delayed Draw) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Ascent Midco, LLC (Revolver) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Ascent Midco, LLC (2,032,258 Class A units) | |
| 3,016 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 414 | |
| 3,430 |
| |
| 10,013 | |
| — | |
| — | |
| (496) | |
| — | |
| 14 | |
| — | |
| 390 | |
| 9,921 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Curion Holdings, LLC | |
| 3,159 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 443 | |
| 3,602 |
Curion Holdings, LLC (Revolver) | |
| 820 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 5 | |
| 825 |
Curion Holdings, LLC (Junior secured loan) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Curion Holdings, LLC (Junior secured loan) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Curion Holdings, LLC (58,779 shares of common stock) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| 3,979 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 448 | |
| 4,427 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Familia Dental Group Holdings, LLC (1,052 Class A units) | |
| 3,118 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 60 | |
| 3,178 |
| |
| 3,118 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 60 | |
| 3,178 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
HFZ Capital Group, LLC | |
| 13,106 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 1,437 | |
| 14,543 |
HFZ Capital Group, LLC | |
| 4,709 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 516 | |
| 5,225 |
MC Asset Management (Corporate), LLC | |
| — | |
| — | |
| 6,423 | |
| — | |
| 183 | |
| — | |
| — | |
| — | |
| 6,606 |
MC Asset Management (Corporate), LLC (Delayed Draw) | |
| — | |
| — | |
| 793 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 793 |
MC Asset Management (Corporate), LLC (15.9% interests) | |
| 785 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 101 | |
| 886 |
MC Asset Management (Industrial), LLC | |
| 11,579 | |
| — | |
| — | |
| — | |
| 619 | |
| — | |
| — | |
| (98) | |
| 12,100 |
| |
| 30,179 | |
| — | |
| 7,216 | |
| — | |
| 802 | |
| — | |
| — | |
| 1,956 | |
| 40,153 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Incipio, LLC | |
| 1,764 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| (1,764) | |
| — |
Incipio, LLC | |
| 4,227 | |
| — | |
| — | |
| — | |
| 48 | |
| — | |
| — | |
| (2,713) | |
| 1,562 |
Incipio, LLC | |
| 1,805 | |
| — | |
| — | |
| — | |
| 15 | |
| — | |
| — | |
| (88) | |
| 1,732 |
Incipio, LLC | |
| 1,519 | |
| — | |
| — | |
| — | |
| 13 | |
| — | |
| — | |
| (74) | |
| 1,458 |
Incipio, LLC | |
| 761 | |
| — | |
| — | |
| — | |
| 6 | |
| — | |
| — | |
| (37) | |
| 730 |
Incipio, LLC | |
| 1,488 | |
| — | |
| 108 | |
| — | |
| 9 | |
| — | |
| — | |
| (78) | |
| 1,527 |
Incipio, LLC (Junior secured loan) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Incipio, LLC (Junior secured loan) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Incipio, LLC (1,774 shares of Series C common units) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| 11,564 | |
| — | |
| 108 | |
| — | |
| 91 | |
| — | |
| — | |
| (4,754) | |
| 7,009 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Luxury Optical Holdings Co. | |
| 1,430 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 51 | |
| 1,481 |
Luxury Optical Holdings Co. (Delayed Draw) | |
| 624 | |
| — | |
| 882 | |
| (93) | |
| — | |
| — | |
| — | |
| 93 | |
| 1,506 |
Luxury Optical Holdings Co. (Revolver) | |
| 66 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 2 | |
| 68 |
Luxury Optical Holdings Co. (91 preferred units) | |
| 2,476 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| (91) | |
| 2,385 |
Luxury Optical Holdings Co. (86 shares of common stock) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| 4,596 | |
| — | |
| 882 | |
| (93) | |
| — | |
| — | |
| — | |
| 55 | |
| 5,440 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mnine Holdings, Inc. | |
| 12,356 | |
| — | |
| — | |
| — | |
| 297 | |
| 20 | |
| — | |
| (30) | |
| 12,643 |
Mnine Holdings, Inc. (6,400 Class B units) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| 12,356 | |
| — | |
| — | |
| — | |
| 297 | |
| 20 | |
| — | |
| (30) | |
| 12,643 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
NECB Collections, LLC (Revolver) | |
| 834 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| (90) | |
| 744 |
NECB Collections, LLC (20.8% of units) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| 834 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| (90) | |
| 744 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
SHI Holdings, Inc. | |
| 188 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| (56) | |
| 132 |
SHI Holdings, Inc. (Revolver) | |
| 297 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| (89) | |
| 208 |
SHI Holdings, Inc. (24 shares of common stock) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| 485 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| (145) | |
| 340 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Summit Container Corporation | |
| 3,204 | |
| — | |
| — | |
| (3,019) | |
| — | |
| — | |
| (250) | |
| 65 | |
| — |
Summit Container Corporation (Revolver) | |
| 1,654 | |
| — | |
| 5,402 | |
| (7,059) | |
| — | |
| — | |
| — | |
| 3 | |
| — |
Summit Container Corporation (warrant to purchase up to 19.5% of the equity) | |
| 139 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| (139) | |
| — |
| |
| 4,997 | |
| — | |
| 5,402 | |
| (10,078) | |
| — | |
| — | |
| (250) | |
| (71) | |
| — |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
TJ Management HoldCo, LLC (Revolver) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
TJ Management HoldCo, LLC (16 shares of common stock) | |
| 3,323 | |
| — | |
| — | |
| (755) | |
| — | |
| — | |
| — | |
| 253 | |
| 2,821 |
| |
| 3,323 | |
| — | |
| — | |
| (755) | |
| — | |
| — | |
| — | |
| 253 | |
| 2,821 |
Total non-controlled affiliate company investments | | $ | 109,715 | | $ | — | | $ | 13,608 | | $ | (14,983) | | $ | 2,532 | | $ | 34 | | $ | (250) | | $ | (1,097) | | $ | 109,559 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Controlled affiliate company investments: | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
MRCC Senior Loan Fund I, LLC | | $ | 39,284 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 2,101 | | $ | 41,385 |
| |
| 39,284 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 2,101 | |
| 41,385 |
Total controlled affiliate company investments | | $ | 39,284 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 2,101 | | $ | 41,385 |
| (1) |
62
| | | | | | | | | | | | | | | | | | |
|
| For the six months ended June 30, | ||||||||||||||||
| | 2022 | | 2021 | ||||||||||||||
| | Interest | | Dividend | | | | | Interest | | Dividend | | | | ||||
Portfolio Company | | Income |
| Income |
| Fee Income |
| Income |
| Income |
| Fee Income | ||||||
Non-controlled affiliate company investments: |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
American Community Homes, Inc. | | $ | 592 | | $ | — | | $ | — | | $ | 553 | | $ | — | | $ | — |
American Community Homes, Inc. | |
| 383 | |
| — | |
| — | |
| 371 | |
| — | |
| — |
American Community Homes, Inc. | |
| n/a | |
| n/a | |
| n/a | |
| 13 | |
| — | |
| — |
American Community Homes, Inc. | |
| 36 | |
| — | |
| — | |
| 33 | |
| — | |
| — |
American Community Homes, Inc. | |
| n/a | |
| n/a | |
| n/a | |
| 5 | |
| — | |
| — |
American Community Homes, Inc. | |
| 132 | |
| — | |
| — | |
| 123 | |
| — | |
| — |
American Community Homes, Inc. | |
| 244 | |
| — | |
| — | |
| 228 | |
| — | |
| — |
American Community Homes, Inc. | |
| 1 | |
| — | |
| — | |
| 23 | |
| — | |
| — |
American Community Homes, Inc. | |
| 5 | |
| — | |
| — | |
| 6 | |
| — | |
| — |
American Community Homes, Inc. (Revolver) | |
| 18 | |
| — | |
| — | |
| — | |
| — | |
| — |
American Community Homes, Inc. (Warrant) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| 1,411 | |
| — | |
| — | |
| 1,355 | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
Ascent Midco, LLC | |
| 225 | |
| — | |
| — | |
| 247 | |
| — | |
| — |
Ascent Midco, LLC (Delayed Draw) | |
| n/a | |
| n/a | |
| n/a | |
| 8 | |
| — | |
| — |
Ascent Midco, LLC (Revolver) | |
| 2 | |
| — | |
| — | |
| 2 | |
| — | |
| — |
Ascent Midco, LLC (Class A units) | |
| — | |
| 93 | |
| — | |
| — | |
| 86 | |
| — |
| |
| 227 | |
| 93 | |
| — | |
| 257 | |
| 86 | |
| — |
| | | | | | | | | | | | | | | | | | |
Curion Holdings, LLC | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Curion Holdings, LLC (Revolver) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Curion Holdings, LLC (Junior secured loan) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Curion Holdings, LLC (Junior secured loan) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
Curion Holdings, LLC (Common stock) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
Familia Dental Group Holdings, LLC (Class A units) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
HFZ Capital Group, LLC | |
| 932 | |
| — | |
| — | |
| 932 | |
| — | |
| — |
HFZ Capital Group, LLC | |
| 335 | |
| — | |
| — | |
| 335 | |
| — | |
| — |
MC Asset Management (Corporate), LLC | |
| 611 | |
| — | |
| — | |
| 450 | |
| — | |
| — |
MC Asset Management (Corporate), LLC (Delayed Draw) | |
| 72 | |
| — | |
| — | |
| 23 | |
| — | |
| — |
MC Asset Management (Corporate), LLC (LLC interest) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
MC Asset Management (Industrial), LLC | |
| n/a | |
| n/a | |
| n/a | |
| 1,073 | |
| — | |
| — |
| |
| 1,950 | |
| — | |
| — | |
| 2,813 | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
Incipio, LLC | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Incipio, LLC | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Incipio, LLC | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Incipio, LLC | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Incipio, LLC | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Incipio, LLC (Delayed Draw) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Incipio, LLC (Junior secured loan) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Incipio, LLC (Junior secured loan) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Incipio, LLC (Common units) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
| |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
Luxury Optical Holdings Co. | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Luxury Optical Holdings Co. (Delayed Draw) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Luxury Optical Holdings Co. (Revolver) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Luxury Optical Holdings Co. (Preferred units) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
Luxury Optical Holdings Co. (Common stock) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
| |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
Mnine Holdings, Inc. | |
| 364 | |
| — | |
| — | |
| 673 | |
| — | |
| — |
Mnine Holdings, Inc. (Class B units) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| 364 | |
| — | |
| — | |
| 673 | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
NECB Collections, LLC (Revolver) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
NECB Collections, LLC (LLC units) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
Second Avenue SFR Holdings II LLC (Revolver) | |
| 98 | |
| — | |
| — | |
| n/a | |
| n/a | |
| n/a |
| |
| 98 | |
| — | |
| — | |
| n/a | |
| n/a | |
| n/a |
| | | | | | | | | | | | | | | | | | |
SFR Holdco, LLC (Junior secured loan) | |
| 234 | |
| — | |
| — | |
| n/a | |
| n/a | |
| n/a |
SFR Holdco, LLC (LLC interest) | |
| — | |
| — | |
| — | |
| n/a | |
| n/a | |
| n/a |
| |
| 234 | |
| — | |
| — | |
| n/a | |
| n/a | |
| n/a |
| | | | | | | | | | | | | | | | | | |
SHI Holdings, Inc. | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
SHI Holdings, Inc. (Revolver) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
SHI Holdings, Inc. (Common stock) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
| |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
Summit Container Corporation | |
| n/a | |
| n/a | |
| n/a | |
| 57 | |
| — | |
| — |
Summit Container Corporation (Revolver) | |
| n/a | |
| n/a | |
| n/a | |
| 35 | |
| — | |
| — |
Summit Container Corporation (Warrant) | |
| n/a | |
| n/a | |
| n/a | |
| — | |
| — | |
| — |
| |
| n/a | |
| n/a | |
| n/a | |
| 92 | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
TJ Management HoldCo, LLC (Revolver) | |
| 5 | |
| — | |
| — | |
| 6 | |
| — | |
| — |
TJ Management HoldCo, LLC (Common stock) | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — |
| |
| 5 | |
| — | |
| — | |
| 6 | |
| — | |
| — |
| | | | | | | | | | | | | | | | | | |
Total non-controlled affiliate company investments | | $ | 4,289 | | $ | 93 | | $ | — | | $ | 5,196 | | $ | 86 | | $ | — |
| | | | | | | | | | | | | | | | | | |
Controlled affiliate company investments: | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
MRCC Senior Loan Fund I, LLC | | $ | — | | $ | 1,800 | | $ | — | | $ | — | | $ | 2,275 | | $ | — |
| |
| — | |
| 1,800 | |
| — | |
| — | |
| 2,275 | |
| — |
Total controlled affiliate company investments | | $ | — | | $ | 1,800 | | $ | — | | $ | — | | $ | 2,275 | | $ | — |
| Nine months ended September 30, | ||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||
| Portfolio Company | Interest Income | Dividend Income | Fee Income | Interest Income | Dividend Income | Fee Income | ||||||||||||||||||
| Non-controlled affiliate company investments: | ||||||||||||||||||||||||
| American Community Homes, Inc. | $ | 846 | $ | — | $ | — | $ | 815 | $ | — | $ | — | ||||||||||||
| American Community Homes, Inc. | 553 | — | — | 727 | — | — | ||||||||||||||||||
| American Community Homes, Inc. | 13 | — | — | 168 | — | — | ||||||||||||||||||
| American Community Homes, Inc. | 51 | — | — | 50 | — | — | ||||||||||||||||||
| American Community Homes, Inc. | 5 | — | — | 40 | — | — | ||||||||||||||||||
| American Community Homes, Inc. | 188 | — | — | 235 | — | — | ||||||||||||||||||
| American Community Homes, Inc. | 349 | — | — | 426 | — | — | ||||||||||||||||||
| American Community Homes, Inc. | 27 | — | — | 5 | — | — | ||||||||||||||||||
| American Community Homes, Inc. | 9 | — | — | 16 | — | — | ||||||||||||||||||
| American Community Homes, Inc. (Revolver) | — | — | — | 146 | — | — | ||||||||||||||||||
| American Community Homes, Inc. (Warrant) | — | — | — | — | — | — | ||||||||||||||||||
| 2,041 | — | — | 2,628 | — | — | |||||||||||||||||||
| Ascent Midco, LLC | 359 | — | — | 334 | — | — | ||||||||||||||||||
| Ascent Midco, LLC (Delayed Draw) | 9 | — | — | 10 | — | — | ||||||||||||||||||
| Ascent Midco, LLC (Revolver) | 3 | — | — | 19 | — | — | ||||||||||||||||||
| Ascent Midco, LLC (Class A units) | — | 130 | — | — | 106 | — | ||||||||||||||||||
| 371 | 130 | — | 363 | 106 | — | |||||||||||||||||||
| Curion Holdings, LLC | — | — | — | — | — | — | ||||||||||||||||||
| Curion Holdings, LLC (Revolver) | — | — | — | — | — | — | ||||||||||||||||||
| Curion Holdings, LLC (Junior secured loan) | — | — | — | — | — | — | ||||||||||||||||||
| Curion Holdings, LLC (Junior secured loan) | — | — | — | — | — | — | ||||||||||||||||||
| Curion Holdings, LLC (Common units) | — | — | — | — | — | — | ||||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||||
| Familia Dental Group Holdings, LLC (Class A units) | — | — | — | n/a | n/a | n/a | ||||||||||||||||||
| — | — | — | n/a | n/a | n/a | |||||||||||||||||||
| HFZ Capital Group, LLC | 1,406 | — | — | n/a | n/a | n/a | ||||||||||||||||||
| HFZ Capital Group, LLC | 505 | — | — | n/a | n/a | n/a | ||||||||||||||||||
| MC Asset Management (Corporate), LLC | 731 | — | — | n/a | n/a | n/a | ||||||||||||||||||
| MC Asset Management (Corporate), LLC (Delayed Draw) | 56 | — | — | n/a | n/a | n/a | ||||||||||||||||||
| MC Asset Management (Corporate), LLC (LLC interest) | — | — | — | n/a | n/a | n/a | ||||||||||||||||||
| MC Asset Management (Industrial), LLC | 2,113 | — | — | n/a | n/a | n/a | ||||||||||||||||||
| 4,811 | — | — | n/a | n/a | n/a | |||||||||||||||||||
| Incipio, LLC | — | — | — | (309 | ) | — | — | |||||||||||||||||
| Incipio, LLC | — | — | — | 299 | — | — | ||||||||||||||||||
| Incipio, LLC | — | — | — | 126 | — | — | ||||||||||||||||||
| Incipio, LLC | — | — | — | 53 | — | — | ||||||||||||||||||
| Incipio, LLC | — | — | — | 101 | — | — | ||||||||||||||||||
| Incipio, LLC | — | — | — | 23 | — | — | ||||||||||||||||||
| Incipio, LLC (Junior secured loan) | — | — | — | — | — | — | ||||||||||||||||||
| Incipio, LLC (Junior secured loan) | — | — | — | — | — | — | ||||||||||||||||||
| Incipio, LLC (Common units) | — | — | — | — | — | — | ||||||||||||||||||
| — | — | — | 293 | — | — | |||||||||||||||||||
| Luxury Optical Holdings Co. | 135 | — | — | — | — | — | ||||||||||||||||||
| Luxury Optical Holdings Co. (Delayed Draw) | 74 | — | — | 61 | — | — | ||||||||||||||||||
| Luxury Optical Holdings Co. (Revolver) | 6 | — | — | — | — | — | ||||||||||||||||||
| Luxury Optical Holdings Co. (Preferred units) | 694 | 654 | — | n/a | n/a | n/a | ||||||||||||||||||
| Luxury Optical Holdings Co. (Common stock) | — | — | — | — | — | — | ||||||||||||||||||
| 909 | 654 | — | 61 | — | — | |||||||||||||||||||
| Mnine Holdings, Inc. | 1,019 | — | — | 602 | — | — | ||||||||||||||||||
| Mnine Holdings, Inc. (Common units) | — | — | — | — | — | — | ||||||||||||||||||
| 1,019 | — | — | 602 | — | — | |||||||||||||||||||
| NECB Collections, LLC (Revolver) | — | — | — | 77 | — | — | ||||||||||||||||||
| NECB Collections, LLC (LLC units) | — | — | — | — | — | — | ||||||||||||||||||
| — | — | — | 77 | — | — | |||||||||||||||||||
| Second Avenue SFR Holdings II LLC (Revolver) | 5 | — | — | n/a | n/a | n/a | ||||||||||||||||||
| Second Avenue SFR Holdings II LLC (Delayed Draw) | 8 | — | — | n/a | n/a | n/a | ||||||||||||||||||
| Second Avenue SFR Holdings II LLC (LLC interest) | — | — | — | n/a | n/a | n/a | ||||||||||||||||||
| 13 | — | — | n/a | n/a | n/a | |||||||||||||||||||
| SHI Holdings, Inc. | — | — | — | (2 | ) | — | — | |||||||||||||||||
| SHI Holdings, Inc. (Revolver) | — | — | — | (3 | ) | — | — | |||||||||||||||||
| SHI Holdings, Inc. (Common stock) | — | — | — | — | — | — | ||||||||||||||||||
| — | — | — | (5 | ) | — | — | ||||||||||||||||||
| Summit Container Corporation | 57 | — | — | 229 | — | — | ||||||||||||||||||
| Summit Container Corporation (Revolver) | 35 | — | — | 269 | — | — | ||||||||||||||||||
| Summit Container Corporation (Warrant) | — | — | — | — | — | — | ||||||||||||||||||
| 92 | — | — | 498 | — | — | |||||||||||||||||||
| TJ Management HoldCo, LLC (Revolver) | 9 | — | — | 1 | — | — | ||||||||||||||||||
| TJ Management HoldCo, LLC (Common stock) | — | — | — | — | — | — | ||||||||||||||||||
| 9 | — | — | 1 | — | — | |||||||||||||||||||
| Total non-controlled affiliate company investments | $ | 9,265 | $ | 784 | $ | — | $ | 4,518 | $ | 106 | $ | — | ||||||||||||
| Controlled affiliate company investments: | ||||||||||||||||||||||||
| MRCC Senior Loan Fund I, LLC | $ | — | $ | 3,300 | $ | — | $ | — | $ | 3,150 | $ | — | ||||||||||||
| — | 3,300 | — | — | 3,150 | — | |||||||||||||||||||
| Total controlled affiliate company investments | $ | — | $ | 3,300 | $ | — | $ | — | $ | 3,150 | $ | — | ||||||||||||
63
Note 6. Transactions with Related Parties
The Company has entered into an investment advisory agreement with MC Advisors (the “Investment Advisory Agreement”), under which MC Advisors, subject to the overall supervision of the Board, provides investment advisory services to the Company. The Company pays MC Advisors a fee for its services under the Investment Advisory Agreement consisting of two components - a base management fee and an incentive fee. The cost of both the base management fee and the incentive fee are borne by the Company’s stockholders, unless such fees are waived by MC Advisors.
The base management fee is calculated initially at an annual rate equal to 1.75% of average invested assets (calculated as total assets excluding cash, which includes assets financed using leverage); provided, however, the base management fee is calculated at an annual rate equal to 1.00% of the Company’s average invested assets (calculated as total assets excluding cash, which includes assets financed using leverage) that exceeds the product of (i) 200% and (ii) the Company’s average net assets. For the avoidance of doubt, the 200% is calculated in accordance with the asset coverage limitation as defined in the 1940 Act to give effect to the Company’s exemptive relief with respect to MRCC SBIC’s SBA debentures.debentures during the period they were outstanding. This has the effect of reducing the Company’s base management fee rate on assets in excess of regulatory leverage of 1:1 debt to equity to 1.00% per annum. The base management fee is payable quarterly in arrears.
Base management fees for the three and ninesix months ended SeptemberJune 30, 20212022 were $2,399$2,269 and $7,060,$4,612, respectively. Base management fees for the three and ninesix months ended SeptemberJune 30, 20202021 were $2,414$2,327 and $7,399,$4,661, respectively.
MC Advisors elected to voluntarily waive zero and $55 of such base management fees for the three and six months ended June 30, 2022, respectively. MC Advisors did not voluntarily waive any of such base management fees for the three and six months ended June 30, 2021.
The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears and equals 20% of “pre-incentive fee net investment income” for the immediately preceding quarter, subject to a 2% (8% annualized) preferred return, or “hurdle,” and a “catch up” feature. The foregoing incentive fee is subject to a total return requirement, which provides that no incentive fee in respect of pre-incentive fee net investment income will be payable except to the extent that 20% of the cumulative net increase in net assets resulting from operations over the then current and 11 preceding calendar quarters exceeds the cumulative incentive fees accrued and/or paid for the 11 preceding calendar quarters (the “Incentive Fee Limitation”). Therefore, any ordinary income incentive fee that is payable in a calendar quarter will be limited to the lesser of (1) 20% of the amount by which pre-incentive fee net investment income for such calendar quarter exceeds the 2% hurdle, subject to the “catch-up” provision, and (2) (x) 20% of the cumulative net increase in net assets resulting from operations for the then current and 11 preceding calendar quarters minus (y) the cumulative incentive fees accrued and/or paid for the 11 preceding calendar quarters. For the foregoing purpose, the “cumulative net increase in net assets resulting from operations” is the sum of pre-incentive fee net investment income, realized gains and losses and unrealized gains and losses for the then current and 11 preceding calendar quarters. The second part of the incentive fee is determined and payable in arrears as of the end of each fiscal year in an amount equal to 20% of realized capital gains, if any, on a cumulative basis from inception through the end of the year, computed net of all realized capital losses on a cumulative basis and unrealized depreciation, less the aggregate amount of any previously paid capital gain incentive fees.
The composition of the Company’s incentive fees was as follows:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Part one incentive fees (1) | $ | 1,578 | $ | 1,129 | $ | 2,828 | $ | 5,012 | ||||||||
| Part two incentive fees (2) | — | — | — | — | ||||||||||||
| Incentive Fee Limitation | — | (1,129 | ) | — | (5,012 | ) | ||||||||||
| Incentive fees, excluding the impact of incentive fee waivers | 1,578 | — | 2,828 | — | ||||||||||||
| Incentive fee waivers (3) | — | — | (1,057 | ) | — | |||||||||||
| Total incentive fees, net of incentive fee waivers | $ | 1,578 | $ | — | $ | 1,771 | $ | — | ||||||||
| | | | | | | | | | | | |
|
| Three months ended June 30, |
| Six months ended June 30, | ||||||||
| | 2022 | | 2021 | | 2022 | | 2021 | ||||
Part one incentive fees (1) | | $ | 774 | | $ | 420 | | $ | 1,182 | | $ | 1,250 |
Part two incentive fees (2) | |
| — | |
| — | |
| — | |
| — |
Incentive Fee Limitation | |
| — | |
| — | |
| — | |
| — |
Incentive fees, excluding the impact of the incentive fee waiver | |
| 774 | |
| 420 | |
| 1,182 | |
| 1,250 |
Incentive fee waiver (3) | |
| (117) | |
| (420) | |
| (525) | |
| (1,057) |
Total incentive fees, net of incentive fee waiver | | $ | 657 | | $ | — | | $ | 657 | | $ | 193 |
| (1) | Based on pre-incentive fee net investment income. |
| (2) | Based upon net realized and unrealized gains and losses, or capital gains. The Company accrues, but does not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. If, on a cumulative basis, the sum of net realized gain (loss) plus net unrealized gain (loss) decreases during a period, the Company will reverse any excess capital gains |
64
| incentive fee previously accrued such that the amount of capital gains incentive fee accrued is no more than 20% of the sum of net realized gain (loss) plus net unrealized gain (loss). |
| (3) | Represents part one incentive fees waived by MC Advisors. |
The Company has entered into an administration agreement with MC Management (the “Administration Agreement”), under which the Company reimburses MC Management, subject to the review and approval of the Board, for its allocable portion of overhead and other expenses, including the costs of furnishing the Company with office facilities and equipment and providing clerical, bookkeeping, record-keeping and other administrative services at such facilities, and the Company’s allocable portion of the cost of the chief financial officer and chief compliance officer and their respective staffs. To the extent that MC Management outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis, without incremental profit to MC Management. For the three and ninesix months ended SeptemberJune 30, 2021,2022, the Company incurred $895$838 and $2,583,$1,667, respectively, in administrative expenses (included within Professional fees, Administrative service fees and General and administrative expenses on the consolidated statements of operations) under the Administration Agreement, of which $327$303 and $1,020,$633, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. For the three and ninesix months ended SeptemberJune 30, 2020,2021, the Company incurred $806$846 and $2,440,$1,688, respectively, in administrative expenses (included within Professional fees, Administrative service fees and General and administrative expenses on the consolidated statements of operations) under the Administration Agreement, of which $321$337 and $973,$693, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. As of SeptemberJune 30, 20212022 and December 31, 2020, $3272021, $303 and $327,$337, respectively, of expenses were due to MC Management under this agreement and are included in accounts payable and accrued expenses on the consolidated statements of assets and liabilities.
The Company has entered into a license agreement with Monroe Capital LLC under which Monroe Capital LLC has agreed to grant the Company a non-exclusive, royalty-free license to use the name “Monroe Capital” for specified purposes in its business. Under this agreement, the Company has the right to use the “Monroe Capital” name at no cost, subject to certain conditions, for so long as MC Advisors or one of its affiliates remains its investment adviser. Other than with respect to this limited license, the Company has no legal right to the “Monroe Capital” name or logo.
As of Septemberboth June 30, 20212022 and December 31, 2020,2021, the Company had accounts payable to members of the Board of $35 and zero, respectively, representing accrued and unpaid fees for their services.
Note 7. Borrowings
In accordance with the 1940 Act, the Company is permitted to borrow amounts such that its asset coverage ratio, as defined in the 1940 Act, is at least 150% after such borrowing. The Company has been granted exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA prior to its dissolution from the asset coverage test under the 1940 Act. As of SeptemberJune 30, 20212022 and December 31, 2020,2021, the Company’s asset coverage ratio based on aggregate borrowings outstanding was 190%173% and 200%189%, respectively.
Revolving Credit Facility: The Company has a $255,000 revolving credit facility with ING Capital LLC, as agent. The revolving credit facility has an accordion feature which permits the Company, under certain circumstances to increase the size of the facility up to $400,000 (subject to maintaining 150% asset coverage, as defined by the 1940 Act). The revolving credit facility is secured by a lien on all of the Company’s assets, including cash on hand, but excluding the assets of the Company’s wholly-owned subsidiary, MRCC SBIC.SBIC, prior to its dissolution. The Company may make draws under the revolving credit facility to make or purchase additional investments through March 1, 2023 and for general working capital purposes until March 1, 2024, the maturity date of the revolving credit facility.
The Company’s ability to borrow under the revolving credit facility is subject to availability under the borrowing base, which permits the Company to borrow up to 72.5% of the fair market value of its portfolio company investments depending on the type of investment the Company holds and whether the investment is quoted. The Company’s ability to borrow is also subject to certain concentration limits, and continued compliance with the representations, warranties and covenants given by the Company under the facility. The revolving credit facility contains certain financial and restrictive covenants, including, but not limited to, the Company’s maintenance of: (1) minimum consolidated total net assets at least equal to $150,000 plus 65% of the net proceeds to the Company from sales of its equity securities after March 1, 2019; (2) a ratio of total assets (less total liabilities other than indebtedness) to total indebtedness of not less than 1.5 to 1; and (3) a senior debt coverage ratio of at least 2 to 1. The revolving credit facility also requires
65
the Company to undertake customary indemnification obligations with respect to ING Capital LLC and other members of the lending group and to reimburse the lenders for expenses associated with entering into the credit facility. The revolving credit facility also has customary provisions regarding events of default, including events of default for nonpayment, change in control transactions at both Monroe Capital Corporation and MC Advisors, failure to comply with financial and negative covenants, and failure to maintain the Company’s relationship with MC Advisors. If the Company incurs an event of default under the revolving credit facility and fails to remedy such default under any applicable grace period, if any, then the entire revolving credit facility could become immediately due and payable, which would materially and adversely affect the Company’s liquidity, financial condition, results of operations and cash flows.
The Company’s revolving credit facility also imposes certain conditions that may limit the amount of the Company’s distributions to stockholders. Distributions payable in the Company’s common stock under the DRIP are not limited by the revolving credit facility. Distributions in cash or property other than common stock are generally limited to 115% of the amount of distributions required to maintain the Company’s status as a RIC.
As of SeptemberJune 30, 2022, the Company had U.S. dollar borrowings of $190,000. As of December 31, 2021, the Company had U.S. dollar borrowings of $139,800$146,400 and non-U.S. dollar borrowings denominated in Great Britain pounds of £3,433 ($4,6254,645 in U.S. dollars) under the revolving credit facility. As of December 31, 2020, the Company had U.S. dollar borrowings of $104,550 and non-U.S. dollarAny borrowings denominated in Great Britain pounds of £16,100 ($22,009 in U.S. dollars) under the revolving credit facility. The borrowings denominated in Great Britain poundsa foreign currency may be positively or negatively affected by movements in the rate of exchange between the U.S. dollar and the Great Britain pound.respective foreign currency. These movements are beyond the control of the Company and cannot be predicted. The borrowingsBorrowings denominated in Great Britain poundsa foreign currency are translated into U.S. dollars based on the spot rate at each balance sheet date. The impact resulting from changes in foreign currency borrowings is included in net change in unrealized gain (loss) on foreign currency and other transactions on the Company’s consolidated statements of operations and totaled $939zero and $680$157 for the three and ninesix months ended SeptemberJune 30, 2021,2022, and ($835)77) and $543($259) for the three and ninesix months ended SeptemberJune 30, 2020,2021, respectively. During both the three and ninesix months ended SeptemberJune 30, 2021,2022, the Company repaid borrowings denominated in Great Britain pounds of £12,667.£3,433. As a result of this repayment, the Company recognized a realized gain (loss) on foreign currency and other transactions on the Company’s consolidated statements of operations of ($866)11) for both the three and ninesix months ended SeptemberJune 30, 2021.2022. There were no repayments of foreign currency borrowings for the three and ninesix months ended SeptemberJune 30, 2020.2021.
Borrowings under the revolving credit facility bear interest, at the Company’s election, at an annual rate of LIBOR (one-month, three-month or six-month at the Company’s discretion based on the term of the borrowing) plus 2.625% or at a daily rate equal to 1.625% per annum plus the greater of the prime interest rate, the federal funds rate plus 0.5% or LIBOR plus 1.0%, with a LIBOR floor of 0.5%. In addition to the stated interest rate on borrowings under the revolving credit facility, the Company is required to pay a commitment fee and certain conditional fees based on usage of the expanded borrowing base and usage of the asset coverage ratio flexibility. A commitment fee of 0.5% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is less than 35% of the then available maximum borrowing or a commitment fee of 1.0% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is greater than or equal to 35% of the then available maximum borrowing. As of SeptemberJune 30, 20212022 and December 31, 2020,2021, the outstanding borrowings were accruing at a weighted average interest rate of 3.3%4.2% and 3.2%3.1%, respectively.
20232026 Notes: On February 18, As of both June 30, 2022 and December 31, 2021, the Company redeemed $109,000had $130,000 in aggregate principal amount of senior unsecured notes outstanding that mature on February 15, 2026. The 2026 Notes bear interest at an annual rate of 4.75% payable semi-annually on February 15 and August 15. The Company may redeem the 2023 Notes.2026 Notes in whole or in part at any time or from time to time at the Company’s option at par plus a “make-whole” premium, if applicable. The redemption2026 Notes are general, unsecured obligations and rank equal in right of payment with all of the Company’s existing and future unsecured indebtedness.
SBA Debentures: On March 1, 2022, MRCC SBIC fully repaid its outstanding debentures utilizing a borrowing on the revolving credit facility and the restricted cash at MRCC SBIC. This repayment was accounted for as a debt extinguishment in accordance with ASC Subtopic 470-50, Debt – Modifications and Extinguishments (“ASC 470-50”), which resulted in a realized loss of $2,335 (primarily comprised of the unamortized deferred financing costs at the time of the redemption) recorded in net gain (loss) on extinguishment of debt on the Company’s consolidated statements of operations. The 2023 Notes were delisted from the Nasdaq Global Select Market in conjunction with the redemption.
2026 Notes: On January 25, 2021, the Company closed a private offering of $130,000 in aggregate principal amount of senior unsecured notes (the “2026 Notes”). Aggregate underwriting commissions were $3,325 and other issuance costs were $683, resulting in net proceeds of approximately $125,992. The 2026 Notes mature on February 15, 2026 and may be redeemed in whole or in part at any time or from time to time at the Company’s option at par plus a “make-whole” premium, if applicable. The 2026 Notes bear interest at an annual rate of 4.75% payable semi-annually on February 15 and August 15 of each year, commencing on August 15, 2021. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of the Company’s existing and future unsecured indebtedness.
SBA Debentures: On February 28, 2014, the Company’s wholly-owned subsidiary, MRCC SBIC received a license from the SBA to operate as a SBIC under Section 301(c) of the Small Business Investment Act of 1958, as amended. MRCC SBIC commenced operations on September 16, 2013.
The SBIC license allows MRCC SBIC to obtain leverage by issuing SBA debentures, subject to the issuance of a leverage commitment by the SBA and other customary procedures. SBA debentures are non-recourse, interest only debentures with interest payable semi-annually and have a 10-year maturity. The principal amount of SBA debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed on a semi-annual basis (pooling date) at a market-driven spread over U.S. Treasury Notes with 10-year maturities. The SBA, as a creditor, has a superior claim to MRCC SBIC’s assets over the Company’s stockholders in the event the Company liquidates MRCC SBIC, or the SBA exercises its remedies upon an event of default.
On March 1, 2021, the Company repaid $28,100 in aggregate principal amount of the SBA debentures. The repayment was accounted for as a debt extinguishment in accordance with ASC 470-50 which resulted in a realized loss of $439$1,039 (primarily comprised of the unamortized deferred financing costs at the time of the repayment) recorded in net gain (loss) on extinguishment of debt on the Company’s consolidated statements of operations. On September 1, 2021, the Company repaid an additional $30,000 in aggregate principal amount ofMRCC SBIC received approval from the SBA debentures. The repaymentto surrender its SBIC license and on March 31, 2022, MRCC SBIC was accounted for as a debt extinguishment in accordance with ASC 470-50 which resulted in a realized lossdissolved.
66
As of SeptemberJune 30, 2022 and December 31, 2021, MRCC SBIC had $8,045 in cashzero and $93,301 in investments at fair value. As of December 31, 2020, MRCC SBIC had $25,657 in cash and $131,167 in investments at fair value.
As of September 30, 2021 and December 31, 2020, MRCC SBIC had $57,624, respectively, in leverageable capital and the following SBA-guaranteedSBA debentures outstanding:
| | | | | | | | | | ||||||||||||
| Maturity Date | Interest Rate | September 30, 2021 | December 31, 2020 |
| Interest Rate |
| June 30, 2022 |
| December 31, 2021 | ||||||||||||
| September 2024 | 3.4 | % | $ | 2,920 | $ | 12,920 |
| | 3.4 | % | $ | — | | $ | 2,920 | ||||||
| March 2025 | 3.3 | % | 14,800 | 14,800 |
| | 3.3 | % |
| — | |
| 14,800 | ||||||||
| March 2025 | 2.9 | % | 7,080 | 7,080 |
| | 2.9 | % |
| — | |
| 7,080 | ||||||||
| September 2025 | 3.6 | % | — | 5,200 | |||||||||||||||||
| March 2027 | 3.5 | % | — | 20,000 | |||||||||||||||||
| September 2027 | 3.2 | % | 32,100 | 32,100 |
| | 3.2 | % |
| — | |
| 32,100 | ||||||||
| March 2028 | 3.9 | % | — | 18,520 | |||||||||||||||||
| September 2028 | 4.2 | % | — | 4,380 | |||||||||||||||||
| Total | $ | 56,900 | $ | 115,000 | | | | | $ | — | | $ | 56,900 | ||||||||
The Company has been granted exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA from the asset coverage test under the 1940 Act. The receipt of this exemption for this SBA debt increases flexibility under the asset coverage test.
Components of interest expense: The components of the Company’s interest expense and other debt financing expenses, average outstanding balances and average stated interest rates (i.e. the rate in effect plus spread) were as follows:
| Three months ended September 30, | |||||||||||||||
| 2021 | 2020 | ||||||||||||||
| | | | | | | | ||||||||
|
| Three months ended |
| ||||||||||||
| | June 30, | | ||||||||||||
| | 2022 | | 2021 |
| ||||||||||
| Interest expense - revolving credit facility | $ | 1,209 | $ | 1,218 | | $ | 1,731 | | $ | 1,051 | | ||||
| Interest expense - 2023 Notes | — | 1,567 | |
| — | |
| — | | ||||||
| Interest expense - 2026 Notes | 1,544 | — | |
| 1,555 | |
| 1,544 | | ||||||
| Interest expense - SBA debentures | 632 | 991 | |
| — | |
| 710 | | ||||||
| Amortization of deferred financing costs | 539 | 582 | |
| 490 | |
| 537 | | ||||||
| Total interest and other debt financing expenses | $ | 3,924 | $ | 4,358 | | $ | 3,776 | | $ | 3,842 | | ||||
| Average debt outstanding | $ | 329,542 | $ | 350,992 | | $ | 314,538 | | $ | 320,074 | | ||||
| Average stated interest rate | 4.0 | % | 4.3 | % | |
| 4.1 | % |
| 4.1 | % | ||||
| Nine months ended September 30, | |||||||||||||||
| 2021 | 2020 | ||||||||||||||
| | | | | | | | ||||||||
| | Six months ended June 30, |
| ||||||||||||
|
| 2022 |
| 2021 |
| ||||||||||
| Interest expense - revolving credit facility | $ | 3,265 | $ | 4,504 | | $ | 3,205 | | $ | 2,056 | | ||||
| Interest expense - 2023 Notes | 837 | 4,701 | |
| — | |
| 837 | | ||||||
| Interest expense - 2026 Notes | 4,220 | — | |
| 3,110 | |
| 2,676 | | ||||||
| Interest expense - SBA debentures | 2,220 | 2,952 | |
| 292 | |
| 1,588 | | ||||||
| Amortization of deferred financing costs | 1,677 | 1,586 | |
| 1,091 | |
| 1,138 | | ||||||
| Total interest and other debt financing expenses | $ | 12,219 | $ | 13,743 | | $ | 7,698 | | $ | 8,295 | | ||||
| Average debt outstanding | $ | 332,028 | $ | 384,452 | | $ | 326,426 | | $ | 333,291 | | ||||
| Average stated interest rate | 4.2 | % | 4.2 | % | |
| 4.0 | % |
| 4.3 | % | ||||
Note 8. Derivative Instruments
The Company enters into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on future interest cash flows from the Company’s investments denominated in foreign currencies. As of SeptemberJune 30, 20212022 and December 31, 2020,2021, the counterparty to these foreign currency forward contracts was Bannockburn Global Forex, LLC. Net unrealized gain or loss on foreign currency forward contracts are included in net change in unrealized gain (loss) on foreign currency forward contracts and net realized gain or loss on forward currency forward contracts are included in net realized gain (loss) on foreign currency forward contracts on the accompanying consolidated statements of operations.
67
Certain information related to the Company’s foreign currency forward contracts is presented below as of SeptemberJune 30, 20212022 and December 31, 2020.2021.
| | | | | | | | | | | | | |
| | As of June 30, 2022 | |||||||||||
| | | | | | | Gross | | Gross | | | ||
| | | | | | | Amount of | | Amount of |
| | ||
|
| Notional Amount |
| Settlement |
| Unrealized |
| Unrealized |
| | |||
Description | | to be Sold | | Date | | Gain | | Loss |
| Balance Sheet location of Net Amounts | |||
Foreign currency forward contract | | AUD | 138 | | 7/18/2022 | | $ | 11 | | $ | — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 140 | | 8/16/2022 | |
| 11 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 153 | | 9/16/2022 | |
| 13 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 152 | | 10/19/2022 | |
| 12 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 136 | | 11/16/2022 | |
| 11 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 142 | | 12/16/2022 | |
| 11 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 153 | | 1/18/2023 | |
| 13 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 140 | | 2/16/2023 | |
| 11 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 132 | | 3/16/2023 | |
| 11 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 160 | | 4/20/2023 | |
| 13 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 121 | | 5/16/2023 | |
| 9 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 156 | | 6/19/2023 | |
| 13 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 138 | | 7/18/2023 | |
| 11 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 146 | | 8/16/2023 | |
| 12 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 146 | | 9/18/2023 | |
| 12 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 148 | | 10/18/2023 | |
| 12 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 140 | | 11/16/2023 | |
| 11 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 142 | | 12/18/2023 | |
| 11 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 150 | | 1/17/2024 | |
| 12 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 143 | | 2/16/2024 | |
| 11 | |
| — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 15,410 | | 3/18/2024 | |
| 1,190 | |
| — | | Unrealized gain on foreign currency forward contracts |
| | | | | | | $ | 1,421 | | $ | — | | |
68
| As of September 30, 2021 | ||||||||||||||||
| Description | Notional Amount to be Sold | Settlement Date | Gross Amount of Unrealized Gain | Gross Amount of Unrealized Loss | Balance Sheet location of Net Amounts | |||||||||||
| Foreign currency forward contract | £ | 83 | 10/4/2021 | $ | - | $ | (10 | ) | Unrealized gain on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 82 | 1/3/2022 | - | (10 | ) | Unrealized gain on foreign currency forward contracts | |||||||||
| Foreign currency forward contract | £ | 79 | 4/4/2022 | - | (9 | ) | Unrealized gain on foreign currency forward contracts | |||||||||
| Foreign currency forward contract | £ | 29 | 5/6/2022 | - | (3 | ) | Unrealized gain on foreign currency forward contracts | |||||||||
| Foreign currency forward contract | AUD | 145 | 10/19/2021 | 8 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 136 | 11/16/2021 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 148 | 12/16/2021 | 8 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 156 | 1/19/2022 | 8 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 136 | 2/16/2022 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 132 | 3/16/2022 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 146 | 4/19/2022 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 138 | 5/17/2022 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 153 | 6/17/2022 | 8 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 138 | 7/18/2022 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 140 | 8/16/2022 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 153 | 9/16/2022 | 8 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 152 | 10/19/2022 | 8 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 136 | 11/16/2022 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 142 | 12/16/2022 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 153 | 1/18/2023 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 140 | 2/16/2023 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 132 | 3/16/2023 | 6 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 160 | 4/20/2023 | 8 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 121 | 5/16/2023 | 6 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 157 | 6/19/2023 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 138 | 7/18/2023 | 6 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 146 | 8/16/2023 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 146 | 9/18/2023 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 148 | 10/18/2023 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 140 | 11/16/2023 | 6 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 142 | 12/18/2023 | 6 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 150 | 1/17/2024 | 7 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 143 | 2/16/2024 | 6 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| Foreign currency forward contract | AUD | 15,410 | 3/18/2024 | 691 | - | Unrealized gain on foreign currency forward contracts | ||||||||||
| $ | 895 | $ | (32 | ) | ||||||||||||
| | | | | | | | | | | | | | |
|
| As of December 31, 2021 | ||||||||||||
| | | | | | | | Gross | | Gross | | | ||
| | Notional | | | | Amount of | | Amount of | | | ||||
| | Amount to be | | Settlement | | Unrealized | | Unrealized | | | ||||
Description | | Sold |
| Date |
| Gain |
| Loss |
| Balance Sheet location of Net Amounts | ||||
Foreign currency forward contract | | £ |
| 82 | | 1/3/2022 | | $ | — | | $ | (10) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | £ | | 79 | | 4/4/2022 | | | — | | | (10) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | £ | | 29 | | 5/6/2022 | | | — | | | (3) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 156 |
| 1/19/2022 |
| | 8 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 136 |
| 2/16/2022 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 132 |
| 3/16/2022 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 146 |
| 4/19/2022 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 138 |
| 5/17/2022 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 153 |
| 6/17/2022 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 138 |
| 7/18/2022 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 140 |
| 8/16/2022 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 153 |
| 9/16/2022 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 152 |
| 10/19/2022 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 136 |
| 11/16/2022 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 142 |
| 12/16/2022 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 153 |
| 1/18/2023 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 140 |
| 2/16/2023 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 132 |
| 3/16/2023 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 160 |
| 4/20/2023 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 121 |
| 5/16/2023 |
| | 5 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 156 |
| 6/19/2023 |
| | 7 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 138 |
| 7/18/2023 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 146 |
| 8/16/2023 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 146 |
| 9/18/2023 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 148 |
| 10/18/2023 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 140 |
| 11/16/2023 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 142 |
| 12/18/2023 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 150 |
| 1/17/2024 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 143 |
| 2/16/2024 |
| | 6 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD |
| 15,410 |
| 3/18/2024 |
| | 635 |
| | — |
| Unrealized gain on foreign currency forward contracts |
| | | | | | | | $ | 804 | | $ | (23) | | |
| As of December 31, 2020 | ||||||||||||||
| Notional Amount to be Sold | Settlement Date | Gross Amount of Unrealized Gain | Gross Amount of Unrealized Loss | Balance Sheet location of Net Amounts | ||||||||||
| Foreign currency forward contract | £ | 87 | 1/4/2021 | $ | — | $ | (12 | ) | Unrealized loss on foreign currency forward contracts | |||||
| Foreign currency forward contract | £ | 206 | 3/3/2021 | — | (18 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 26 | 3/3/2021 | — | (2 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 84 | 4/2/2021 | — | (12 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 212 | 6/1/2021 | — | (19 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 26 | 6/1/2021 | — | (2 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 83 | 7/2/2021 | — | (11 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 83 | 10/4/2021 | — | (11 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 82 | 1/3/2022 | — | (11 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 79 | 4/4/2022 | — | (11 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Foreign currency forward contract | £ | 29 | 5/6/2022 | — | (4 | ) | Unrealized loss on foreign currency forward contracts | |||||||
| Total | $ | — | $ | (113 | ) | |||||||||
For the three and ninesix months ended SeptemberJune 30, 2022, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of $1,056 and $640, respectively. For the three and six months ended June 30, 2022, the Company recognized net realized gain (loss) on foreign currency forward contracts of $19 and $31, respectively.
For the three and six months ended June 30, 2021, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of $530$112 and $976,$446, respectively. For the three and ninesix months ended SeptemberJune 30, 2021, the Company recognized net realized gain (loss) on foreign currency forward contracts of $20($37) and ($55)75), respectively.
For the three and nine months ended September 30, 2020, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts69
Note 9. Distributions
The Company’s distributions are recorded on the record date. The following table summarizes distributions declared during the ninesix months ended SeptemberJune 30, 20212022 and 2020:2021:
| Date Declared | Record Date | Payment Date | Amount Per Share | Cash Distribution | DRIP Shares Issued | DRIP Shares Value | DRIP Shares Repurchased in the Open Market | Cost of DRIP Shares Repurchased | ||||||||||||||||||
| Nine months ended September 30, 2021: | ||||||||||||||||||||||||||
| March 2, 2021 | March 16, 2021 | March 31, 2021 | $ | 0.25 | $ | 5,326 | — | $ | — | 35,611 | $ | 364 | ||||||||||||||
| June 2, 2021 | June 16, 2021 | June 30, 2021 | 0.25 | 5,386 | — | — | 31,277 | 343 | ||||||||||||||||||
| September 2, 2021 | September 16, 2021 | September 30, 2021 | 0.25 | 5,386 | — | — | 35,623 | 369 | ||||||||||||||||||
| Total distributions declared | $ | 0.75 | $ | 16,098 | — | $ | — | 102,511 | $ | 1,076 | ||||||||||||||||
| Nine months ended September 30, 2020: | ||||||||||||||||||||||||||
| March 3, 2020 | March 16, 2020 | March 31, 2020 | $ | 0.35 | $ | 7,155 | — | $ | — | 55,938 | $ | 374 | ||||||||||||||
| May 8, 2020 | June 15, 2020 | June 30, 2020 | 0.25 | 5,257 | — | — | 40,612 | 283 | ||||||||||||||||||
| September 4, 2020 | September 16, 2020 | September 30, 2020 | 0.25 | 5,326 | — | — | 44,246 | 305 | ||||||||||||||||||
| Total distributions declared | $ | 0.85 | $ | 17,738 | — | $ | — | 140,796 | $ | 962 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
|
| | |
| | |
| | |
| | |
| |
| | |
| DRIP Shares |
| | |
| | | | | | | | Amount | | | | | DRIP | | DRIP | | Repurchased | | Cost of | |||
Date | | Record | | Payment | | Per | | Cash | | Shares | | Shares | | in the Open | | DRIP Shares | ||||||
Declared | | Date | | Date | | Share | | Distribution | | Issued | | Value | | Market | | Repurchased | ||||||
Six months ended June 30, 2022: | | | | | | | | | | | | | | | | | | | | | | |
March 2, 2022 | | | March 16, 2022 | | | March 31, 2022 | | $ | 0.25 | | $ | 5,417 | | — | | $ | — | | 25,229 | | $ | 276 |
June 1, 2022 | | | June 15, 2022 | | | June 30, 2022 | | | 0.25 | | | 5,416 | | — | | | — | | 29,655 | | | 280 |
Total distributions declared | | | | | | |
| $ | 0.50 | | $ | 10,833 |
| — | | $ | — |
| 54,884 |
| $ | 556 |
| | | | | | | | | | | | | | | | | | | | | | |
Six months ended June 30, 2021: | |
|
| |
|
|
| |
| |
|
|
|
| |
|
|
|
|
| |
|
March 2, 2021 | | | March 16, 2021 | | | March 31, 2021 | | $ | 0.25 | | $ | 5,326 |
| — | | $ | — |
| 35,611 | | $ | 364 |
June 2, 2021 | | | June 16, 2021 | | | June 30, 2021 | |
| 0.25 | |
| 5,386 |
| — | |
| — |
| 31,277 | |
| 343 |
Total distributions declared | | | | | | | | $ | 0.50 | | $ | 10,712 |
| — | | $ | — |
| 66,888 | | $ | 707 |
Note 10. Stock Issuances and Repurchases
Stock Issuances: On May 12, 2017, the Company entered into at-the-market (“ATM”) equity distribution agreements with each of JMP Securities LLC (“JMP”) and FBR Capital Markets & Co. (“FBR”) (the “ATM Program”) through which the Company could sell, by means of ATM offerings, from time to time, up to $50,000 of the Company’s common stock. On May 8, 2020, the Company entered into an amendment to the ATM Program to extend its term. All other material terms of the ATM Program remain unchanged. There were no stock issuances through the ATM Program during the six months ended June 30, 2022. During the ninesix months ended SeptemberJune 30, 2021, the Company sold 240,000 shares at an average price of $11.43 per share for gross proceeds of $2,743 under the ATM program. Aggregate underwriter’s discounts and commissions were $41 and offering costs were $12, resulting in net proceeds of approximately $2,690. During the nine months ended September 30, 2020, the Company sold 858,976 shares at an average price of $7.78 per share for gross proceeds of $6,684 under the ATM program. Aggregate underwriter’s discounts and commissions were $100 and offering costs were $89, resulting in net proceeds of approximately $6,495.
Note 11. Commitments and Contingencies
Commitments: As of SeptemberJune 30, 20212022 and December 31, 2020,2021, the Company had $70,780$54,715 and $52,252,$55,483, respectively, in outstanding commitments to fund investments under undrawn revolvers, capital expenditure loans, delayed draw commitments and subscription agreements (excluding SLF). As described in Note 3, the Company had unfunded commitments of $7,350 and $7,850, to SLF as of SeptemberJune 30, 20212022 and December 31, 20202021, respectively, that may be contributed primarily for the purpose of funding new investments approved by the SLF investment committee. Drawdowns of the commitments to SLF require authorization from one of the Company’s representatives on SLF’s board of managers. Management believes that the Company’s available cash balances and/or ability to draw on the revolving credit facility provide sufficient funds to cover its unfunded commitments as of SeptemberJune 30, 2021.2022.
Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The Company’s maximum exposure under these agreements is unknown, as these involve future claims that may be made against the Company but that have not occurred. The Company expects the risk of any future obligations under these indemnifications to be remote.
Concentration of credit and counterparty risk: Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of the contract. In the event that the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparties or issuers of the instruments. It is the Company’s policy to review, as necessary, the credit standing of each counterparty.
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Market risk: The Company’s investments and borrowings are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments and borrowings are traded.
Legal proceedings: In the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company is not currently aware of any such proceedings or disposition that would have a material adverse effect on the Company’s consolidated financial statements.
Note 12. Financial Highlights
The following is a schedule of financial highlights for the ninesix months ended SeptemberJune 30, 20212022 and 2020:2021:
| September 30, 2021 | September 30, 2020 | |||||||
| Per share data: | ||||||||
| Net asset value at beginning of period | $ | 11.00 | $ | 12.20 | ||||
| Net investment income (1) | 0.78 | 1.21 | ||||||
| Net gain (loss) (1) | 0.42 | (1.57 | ) | |||||
| Net increase (decrease) in net assets resulting from operations (1) | 1.20 | (0.36 | ) | |||||
| Stockholder distributions - income (2) | (0.75 | ) | (0.85 | ) | ||||
| Effect of share issuances below NAV (3) | — | (0.16 | ) | |||||
| Net asset value at end of period | $ | 11.45 | $ | 10.83 | ||||
| Net assets at end of period | $ | 246,650 | $ | 230,683 | ||||
| Shares outstanding at end of period | 21,543,540 | 21,303,540 | ||||||
| Per share market value at end of period | $ | 10.39 | $ | 6.84 | ||||
| Total return based on market value (4) | 38.85 | % | (28.85 | )% | ||||
| Total return based on average net asset value (5) | 10.65 | % | (3.28 | )% | ||||
| Ratio/Supplemental data: | ||||||||
| Ratio of net investment income to average net assets (6) | 9.58 | % | 14.78 | % | ||||
| Ratio of total expenses, net of incentive fee waivers, to average net assets (6) (7) | 13.09 | % | 14.13 | % | ||||
| Portfolio turnover (8) | 33.79 | % | 16.83 | % | ||||
| | | | | | | |
|
| June 30, 2022 |
| June 30, 2021 |
| ||
Per share data: |
| |
|
| |
| |
Net asset value at beginning of period | | $ | 11.51 | | $ | 11.00 | |
Net investment income (1) | |
| 0.48 | |
| 0.49 | |
Net gain (loss) (1) | |
| (0.78) | |
| 0.37 | |
Net increase (decrease) in net assets resulting from operations (1) | |
| (0.30) | |
| 0.86 | |
Stockholder distributions - income (2) | |
| (0.50) | |
| (0.50) | |
Net asset value at end of period | | $ | 10.71 | | $ | 11.36 | |
Net assets at end of period | | $ | 232,121 | | $ | 244,797 | |
Shares outstanding at end of period | |
| 21,666,340 | |
| 21,543,540 | |
Per share market value at end of period | | $ | 9.03 | | $ | 10.73 | |
Total return based on market value (3) | |
| (15.50) | % |
| 40.00 | % |
Total return based on average net asset value (4) | |
| (2.69) | % |
| 7.71 | % |
Ratio/Supplemental data: | |
|
| |
|
| |
Ratio of net investment income to average net assets (5) | |
| 8.92 | % |
| 8.95 | % |
Ratio of total expenses, net of base management fee and incentive fee waivers, to average net assets (5) (6) | |
| 12.30 | % |
| 12.68 | % |
Portfolio turnover (7) | |
| 7.82 | % |
| 18.69 | % |
| (1) | Calculated using the weighted average shares outstanding during the periods presented. |
| (2) | Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company’s taxable earnings fall below the total amount of the Company’s distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company’s stockholders. The tax character of distributions will be determined at the end of the fiscal year. However, if the character of such distributions were determined as of |
| (3) | |
| Total return based on market value is calculated assuming a purchase of common shares at the market value on the first day and a sale at the market value on the last day of the periods reported. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s DRIP. Total return based on market value does not reflect brokerage commissions. Return calculations are not annualized. |
| Total return based on average net asset value is calculated by dividing the net increase (decrease) in net assets resulting from operations by the average net asset value. Return calculations are not annualized. |
| Ratios are annualized. Incentive fees included within the ratio are not annualized. |
| The following is a schedule of supplemental ratios for the |
| September 30, 2021 | September 30, 2020 | |||||||
| Ratio of total investment income to average net assets | 22.68 | % | 28.91 | % | ||||
| Ratio of interest and other debt financing expenses to average net assets | 6.79 | % | 8.10 | % | ||||
| Ratio of total expenses (without incentive fees) to average net assets | 12.35 | % | 14.13 | % | ||||
| Ratio of incentive fees, net of incentive fee waivers, to average net assets (8) (9) | 0.74 | % | 0.00 | % | ||||
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| | | | | |
|
| June 30, 2022 |
| June 30, 2021 |
|
Ratio of total investment income to average net assets |
| 21.22 | % | 21.63 | % |
Ratio of interest and other debt financing expenses to average net assets |
| 6.41 | % | 7.01 | % |
Ratio of total expenses (without base management fee waivers and incentive fees) to average net assets |
| 12.05 | % | 12.60 | % |
Ratio of incentive fees, net of incentive fee waivers, to average net assets (7) (8) |
| 0.27 | % | 0.08 | % |
| Ratios are not annualized. |
| The ratio of waived incentive fees to average net assets was |
72
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Except as otherwise specified, references to “we,” “us” and “our” refer to Monroe Capital Corporation and its consolidated subsidiaries; MC Advisors refers to Monroe Capital BDC Advisors, LLC, our investment adviser and a Delaware limited liability company; MC Management refers to Monroe Capital Management Advisors, LLC, our administrator and a Delaware limited liability company; Monroe Capital refers to Monroe Capital LLC, a Delaware limited liability company, and its subsidiaries and affiliates; and SLF refers to MRCC Senior Loan Fund I, LLC, an unconsolidated Delaware limited liability company, in which we co-invest with Life Insurance Company of the Southwest (“LSW”) primarily in senior secured loans. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes appearing in our annual report on Form 10-K (the “Annual Report”) for the year ended December 31, 2020,2021, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 2, 2021.3, 2022. The information contained in this section should also be read in conjunction with our unaudited consolidated financial statements and related notes and other financial information appearing elsewhere in this quarterly report on Form 10-Q (the “Quarterly Report”).
FORWARD-LOOKING STATEMENTS
This Quarterly Report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements that constitute forward-looking statements, which relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry, our beliefs and our assumptions. The forward-looking statements contained in this Quarterly Report involve risks and uncertainties, including statements as to:
| our future operating results; |
| ● | our business prospects and the prospects of our portfolio companies; |
| ● | the dependence of our future success on the general economy and its impact on the industries in which we invest; |
| ● | the impact of global health epidemics, such as the current novel coronavirus (“COVID-19”) pandemic, on our or our portfolio companies’ business and the global economy; |
| ● | the impact of the Russian invasion of Ukraine on our portfolio companies and the global economy; |
| the impact of a protracted decline in the liquidity of credit markets on our business; |
| ● | ||
| the impact of changes in London Interbank Offered Rate (“LIBOR”) on our operating results; |
| ● | the impact of increased competition; |
| ● | the impact of fluctuations in interest rates on our business and our portfolio companies; |
| ● | our contractual arrangements and relationships with third parties; |
| ● | the valuation of our investments in portfolio companies, particularly those having no liquid trading market; |
| ● | actual and potential conflicts of interest with MC Advisors, MC Management and other affiliates of Monroe Capital; |
| ● | the ability of our portfolio companies to achieve their objectives; |
| ● | the use of borrowed money to finance a portion of our investments; |
| ● | the adequacy of our financing sources and working capital; |
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| ● | the timing of cash flows, if any, from the operations of our portfolio companies; |
| ● | the ability of MC Advisors to locate suitable investments for us and to monitor and administer our investments; |
| ● | the ability of MC Advisors or its affiliates to attract and retain highly talented professionals; |
| ● | our ability to qualify and maintain our qualification as a regulated investment company and as a business development company; and |
| ● | the impact of future legislation and regulation on our business and our portfolio companies. |
We use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates,” “targets” and similar expressions to identify forward-looking statements. The forward-looking statements contained in this Quarterly Report involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Part I-Item 1A. Risk Factors” in our Annual Report and “Part II-Item 1A. Risk Factors” in this Quarterly Report.
Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include our ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statements in this Quarterly Report should not be regarded as a representation by us that our plans and objectives will be achieved.
We have based the forward-looking statements included in this Quarterly Report on information available to us on the date of this Quarterly Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements in this Quarterly Report, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we may file in the future with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Overview
Monroe Capital Corporation is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, we have elected to be treated as a regulated investment company (“RIC”) under the subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We are a specialty finance company focused on providing financing solutions primarily to lower middle-market companies in the United States and Canada. We provide customized financing solutions focused primarily on senior secured, junior secured and unitranche secured (a combination of senior secured and junior secured debt in the same facility in which we syndicate a “first out” portion of the loan to an investor and retain a “last out” portion of the loan) debt and, to a lesser extent, unsecured subordinated debt and equity, including equity co-investments in preferred and common stock, and warrants.
Our shares are currently listed on the NASDAQ Global Select Market under the symbol “MRCC”.
Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through investment in senior secured, unitranche secured and junior secured debt and, to a lesser extent, unsecured subordinated debt and equity investments. We seek to use our extensive leveraged finance origination infrastructure and broad expertise in sourcing loans to invest in primarily senior secured, unitranche secured and junior secured debt of middle-market companies. Our investments will generally range between $2.0 million and $25.0 million each, although this investment size may vary proportionately with the size of our capital base. As of SeptemberJune 30, 2021,2022, our portfolio included approximately 76.8%77.5% senior secured loans, 8.0%6.3% unitranche secured loans, 1.6%3.7% junior secured loans and 13.6%12.5% equity securities, compared to December 31, 2020,2021, when our portfolio included approximately 74.1%75.4% senior secured loans, 11.7%9.2% unitranche secured loans, 2.6% junior secured loans and 11.6%12.8% equity securities. We expect that the companies in which we invest may be leveraged, often as a result of leveraged buy-outs or
74
other recapitalization transactions, and, in certain cases, will not be rated by national ratings agencies. If such companies were rated, we believe that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor’s system) from the national rating agencies.
While our primary focus is to maximize current income and capital appreciation through debt investments in thinly traded or private U.S. companies, we may invest a portion of the portfolio in opportunistic investments in order to seek to enhance returns to stockholders. Such investments may include investments in real estate, specialty finance, litigation finance, fund finance, high-yield bonds, distressed debt, private equity or securities of public companies that are not thinly traded and securities of middle-market companies located outside of the United States. We expect that these public companies generally will have debt securities that are non-investment grade.
On February 28, 2014, our wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP (“MRCC SBIC”), a Delaware limited partnership, received a license from the Small Business Administration (“SBA”) to operate as a Small Business Investment Company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958. MRCC SBIC commenced operations on September 16, 2013. MRCC SBIC received approval from the SBA to surrender its SBIC license and on March 31, 2022, MRCC SBIC was dissolved. See “SBA Debentures” below for more information.
54
Investment income
We generate interest income on the debt investments in portfolio company investments that we originate or acquire. Our debt investments, whether in the form of senior secured, unitranche secured or junior secured debt, typically have an initial term of three to seven years and bear interest at a fixed or floating rate. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. In some cases, our investments provide for deferred interest of payment-in-kind (“PIK”) interest. In addition, we may generate revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing managerial assistance and consulting fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums and prepayment gains (losses) on loans as interest income. As the frequency or volume of the repayments which trigger these prepayment premiums and prepayment gains (losses) may fluctuate significantly from period to period, the associated interest income recorded may also fluctuate significantly from period to period. Interest and fee income are recorded on the accrual basis to the extent we expect to collect such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. We record fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service has been completed.
Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. The frequency and volume of the distributions on common equity securities and LLC and LP investments may fluctuate significantly from period to period.
Expenses
Our primary operating expenses include the payment of base management and incentive fees to MC Advisors, under the investment advisory and management agreement (the “Investment Advisory Agreement”), the payment of fees to MC Management for our allocable portion of overhead and other expenses under the administration agreement (the “Administration Agreement”) and other operating costs. See Note 6 to our consolidated financial statements and “Related Party Transactions” below for additional
75
information on our Investment Advisory Agreement and Administration Agreement. Our expenses also include interest expense on our various forms of indebtedness. We bear all other out-of-pocket costs and expenses of our operations and transactions.
Net gain (loss)
We recognize realized gains or losses on investments, foreign currency forward contracts and foreign currency and other transactions based on the difference between the net proceeds from the disposition and the cost basis without regard to unrealized gains or losses previously recognized within net realized gain (loss) on the consolidated statements of operations. We record current period changes in fair value of investments, foreign currency forward contracts, foreign currency and other transactions within net change in unrealized gain (loss) on the consolidated statements of operations.
Portfolio and Investment Activity
During the three months ended SeptemberJune 30, 2021,2022, we invested $54.7$11.6 million in 11four new portfolio companies and $27.5$9.7 million in 1720 existing portfolio companies and had $62.3$19.5 million in aggregate amount of sales and principal repayments, resulting in net investmentspurchases of $19.9$1.8 million for the period.
During the ninesix months ended SeptemberJune 30, 2021,2022, we invested $118.6$18.3 million in 27seven new portfolio companies and $63.2$24.6 million in 2629 existing portfolio companies and had $193.6$55.7 million in aggregate amount of sales and principal repayments, resulting in net sales and repayments of $11.8$12.8 million for the period.
During the three months ended SeptemberJune 30, 2020,2021, we did not investinvested $40.9 million in any11 new portfolio companies. During the three months ended September 30, 2020, we invested $15.0companies and $14.9 million in eight12 existing portfolio companies and had $68.4$55.4 million in aggregate amount of sales and principal repayments, resulting in net sales and repayments of $53.4$0.4 million for the period.
During the ninesix months ended SeptemberJune 30, 2020,2021, we invested $41.3$62.4 million in six16 new portfolio companies and $55.1$37.2 million in 3724 existing portfolio companies and had $163.5$131.3 million in aggregate amount of sales and principal repayments, resulting in net sales and repayments of $67.1$31.7 million for the period.
The following table shows portfolio yield by security type:
| September 30, 2021 | December 31, 2020 | |||||||||||||||
| Weighted Average Annualized Contractual Coupon Yield (1) | Weighted Average Annualized Effective Yield (2) | Weighted Average Annualized Contractual Coupon Yield (1) | Weighted Average Annualized Effective Yield (2) | |||||||||||||
| Senior secured loans | 8.4 | % | 8.4 | % | 8.1 | % | 8.1 | % | ||||||||
| Unitranche secured loans | 4.8 | 5.0 | 6.3 | 6.5 | ||||||||||||
| Junior secured loans | 11.1 | 11.1 | 7.6 | 7.6 | ||||||||||||
| Preferred equity securities | 5.3 | 5.3 | 1.4 | 1.4 | ||||||||||||
| Total | 7.9 | % | 7.9 | % | 7.7 | % | 7.7 | % | ||||||||
_____________________________
| | | | | | | | | |
| | June 30, 2022 | | December 31, 2021 |
| ||||
| | Weighted Average | | Weighted | | Weighted Average | | Weighted |
|
| | Annualized | | Average | | Annualized | | Average |
|
| | Contractual | | Annualized | | Contractual | | Annualized |
|
| | Coupon | | Effective | | Coupon | | Effective |
|
|
| Yield (1) |
| Yield (2) |
| Yield (1) |
| Yield (2) |
|
Senior secured loans |
| 9.0 | % | 9.0 | % | 8.5 | % | 8.5 | % |
Unitranche secured loans |
| 4.7 |
| 5.0 |
| 5.1 |
| 5.4 | |
Junior secured loans |
| 10.4 |
| 10.4 |
| 10.1 |
| 10.1 | |
Preferred equity securities |
| 2.7 |
| 2.7 |
| 3.0 |
| 3.0 | |
Total |
| 8.4 | % | 8.5 | % | 7.9 | % | 8.0 | % |
| (1) | The weighted average annualized contractual coupon yield at period end is computed by dividing (a) the interest income on our debt investments and preferred equity investments (with a stated coupon rate) at the period end contractual coupon rate for each investment by (b) the par value of our debt investments (excluding debt investments acquired for no cost in a restructuring on non-accrual status) and the cost basis of our preferred equity investments. We exclude loans acquired for no cost in a restructuring on non-accrual status within this metric as management believes this disclosure provides a better indication of return on invested capital. This exclusion impacts only the junior secured loans and total disclosed above. The weighted average contractual coupon yield including debt investments acquired for no cost in a restructuring on non-accrual status was |
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| (2) | The weighted average annualized effective yield on portfolio investments at period end is computed by dividing (a) interest income on our debt investments and preferred equity investments (with a stated coupon rate) at the period end effective rate for each investment by (b) the par value of our debt investments (excluding debt investments acquired for no cost in a restructuring on non-accrual status) and the cost basis of our preferred equity investments. We exclude loans acquired for no cost in a restructuring on non-accrual status within this metric as management believes this disclosure provides a better indication of return on invested capital. This exclusion impacts only the junior secured loans and total disclosed above. The weighted average effective yield including debt investments acquired for no cost in a restructuring on non-accrual status was |
The following table shows the composition of our investment portfolio (in thousands):
| September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||
| | | | | | | | | | | | ||||||||||||||||
|
| June 30, 2022 |
| December 31, 2021 |
| ||||||||||||||||||||||
| Fair Value: | |
| | |
| |
| | |
|
| ||||||||||||||||
| Senior secured loans | $ | 425,055 | 76.8 | % | $ | 405,224 | 74.1 | % | | $ | 415,244 |
| 77.5 | % | $ | 423,700 |
| 75.4 | % | ||||||||
| Unitranche secured loans | 44,420 | 8.0 | 64,040 | 11.7 | |
| 34,114 |
| 6.3 | |
| 51,494 |
| 9.2 | | ||||||||||||
| Junior secured loans | 9,181 | 1.6 | 14,592 | 2.6 | |
| 19,745 |
| 3.7 | |
| 14,364 |
| 2.6 | | ||||||||||||
| LLC equity interest in SLF | 41,331 | 7.5 | 39,284 | 7.2 | |
| 37,551 |
| 7.0 | |
| 41,125 |
| 7.3 | | ||||||||||||
| Equity securities | 33,757 | 6.1 | 23,899 | 4.4 | |
| 29,385 |
| 5.5 | |
| 31,010 |
| 5.5 | | ||||||||||||
| Total | $ | 553,744 | 100.0 | % | $ | 547,039 | 100.0 | % | | $ | 536,039 |
| 100.0 | % | $ | 561,693 |
| 100.0 | % | ||||||||
Our portfolio composition remained relatively consistent with December 31, 2020.2021. Our effective yields increased from December 31, 2021, driven primarily by increases in LIBOR and SOFR rates. The increase inmajority of our loans surpassed their interest rate floors near the effective yield on our portfolio included the benefitend of returning certain investments to accrual status during the three months ended SeptemberJune 30, 2021.2022.
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The following table shows our portfolio composition by industry (in thousands):
| September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||
| | | | | | | | | | | | ||||||||||||||||
|
| June 30, 2022 |
| December 31, 2021 |
| ||||||||||||||||||||||
| Fair Value: | | | | | | | | | | | | ||||||||||||||||
| Aerospace & Defense | $ | 7,840 | 1.4 | % | $ | — | — | % | | $ | 7,873 |
| 1.5 | % | $ | 7,972 |
| 1.4 | % | ||||||||
| Automotive | 21,612 | 3.9 | 9,637 | 1.8 | |
| 20,074 |
| 3.8 | |
| 21,556 |
| 3.8 | | ||||||||||||
| Banking, Finance, Insurance & Real Estate | 88,401 | 16.0 | 72,627 | 13.3 | |||||||||||||||||||||||
Banking | |
| 15,230 |
| 2.8 | |
| 6,712 |
| 1.2 | | ||||||||||||||||
| Beverage, Food & Tobacco | 20,123 | 3.6 | 20,676 | 3.8 | |
| 13,997 |
| 2.6 | |
| 19,133 |
| 3.4 | | ||||||||||||
| Capital Equipment | 9,867 | 1.8 | 13,750 | 2.5 | |
| 13,914 |
| 2.6 | |
| 12,839 |
| 2.3 | | ||||||||||||
| Chemicals, Plastics & Rubber | 10,354 | 1.9 | 27,754 | 5.1 | |
| 4,530 |
| 0.8 | |
| 10,163 |
| 1.8 | | ||||||||||||
| Construction & Building | 13,831 | 2.5 | 16,809 | 3.0 | |
| 17,288 |
| 3.2 | |
| 16,636 |
| 3.0 | | ||||||||||||
| Consumer Goods: Durable | 9,743 | 1.8 | 18,893 | 3.4 | |
| 9,592 |
| 1.8 | |
| 9,734 |
| 1.7 | | ||||||||||||
| Consumer Goods: Non-Durable | 9,661 | 1.7 | 13,027 | 2.4 | |
| 3,531 |
| 0.7 | |
| 8,460 |
| 1.5 | | ||||||||||||
| Containers, Packaging & Glass | — | — | 4,997 | 0.9 | |||||||||||||||||||||||
| Environmental Industries | 12,543 | 2.3 | 13,168 | 2.4 | |
| 6,328 |
| 1.2 | |
| 17,693 |
| 3.2 | | ||||||||||||
FIRE: Finance | |
| 15,554 |
| 2.9 | |
| 15,681 |
| 2.8 | | ||||||||||||||||
FIRE: Real Estate | |
| 78,839 |
| 14.7 | |
| 76,698 |
| 13.6 | | ||||||||||||||||
| Healthcare & Pharmaceuticals | 54,596 | 9.9 | 37,815 | 6.9 | |
| 60,218 |
| 11.2 | |
| 53,179 |
| 9.5 | | ||||||||||||
| High Tech Industries | 60,317 | 10.9 | 81,417 | 14.9 | |
| 47,628 |
| 8.9 | |
| 54,085 |
| 9.6 | | ||||||||||||
| Hotels, Gaming & Leisure | 2,629 | 0.5 | 1,771 | 0.3 | |
| 2,658 |
| 0.5 | |
| 2,706 |
| 0.5 | | ||||||||||||
| Investment Funds & Vehicles | 41,332 | 7.5 | 39,284 | 7.2 | |
| 37,551 |
| 7.0 | |
| 41,125 |
| 7.3 | | ||||||||||||
| Media: Advertising, Printing & Publishing | 19,603 | 3.5 | 31,553 | 5.8 | |
| 15,401 |
| 2.9 | |
| 16,794 |
| 3.0 | | ||||||||||||
| Media: Broadcasting & Subscription | 2,429 | 0.4 | 2,227 | 0.4 | |
| 2,594 |
| 0.5 | |
| 2,477 |
| 0.5 | | ||||||||||||
| Media: Diversified & Production | 17,985 | 3.2 | 6,811 | 1.2 | |
| 27,577 |
| 5.1 | |
| 24,220 |
| 4.3 | | ||||||||||||
| Retail | 22,259 | 4.0 | 18,443 | 3.4 | |
| 10,721 |
| 2.0 | |
| 11,478 |
| 2.0 | | ||||||||||||
| Services: Business | 73,411 | 13.3 | 78,584 | 14.4 | |
| 57,439 |
| 10.7 | |
| 71,540 |
| 12.7 | | ||||||||||||
| Services: Consumer | 35,034 | 6.3 | 25,306 | 4.6 | |
| 43,524 |
| 8.1 | |
| 39,248 |
| 7.0 | | ||||||||||||
| Telecommunications | 4,514 | 0.8 | 1,100 | 0.2 | |
| 9,143 |
| 1.7 | |
| 5,988 |
| 1.1 | | ||||||||||||
| Wholesale | 15,660 | 2.8 | 11,390 | 2.1 | |
| 14,835 |
| 2.8 | |
| 15,576 |
| 2.8 | | ||||||||||||
| Total | $ | 553,744 | 100.0 | % | $ | 547,039 | 100.0 | % | | $ | 536,039 |
| 100.0 | % | $ | 561,693 |
| 100.0 | % | ||||||||
Portfolio Asset Quality
MC Advisors’ portfolio management staff closely monitors all credits, with senior portfolio managers covering agented and more complex investments. MC Advisors segregates our capital markets investments by industry. The MC Advisors’ monitoring process and projections developed by Monroe Capital both have daily, weekly, monthly and quarterly components and related reports, each to evaluate performance against historical, budget and underwriting expectations. MC Advisors’ analysts will monitor performance using standard industry software tools to provide consistent disclosure of performance. When necessary, MC Advisors will update our internal risk ratings, borrowing base criteria and covenant compliance reports.
78
As part of the monitoring process, MC Advisors regularly assesses the risk profile of each of our investments and rates each of them based on an internal proprietary system that uses the categories listed below, which we refer to as MC Advisors’ investment performance risk rating. For any investment rated in grades 3, 4 or 5, MC Advisors, through its internal Portfolio Management Group (“PMG”), will increase its monitoring intensity and prepare regular updates for the investment committee, summarizing current operating results and material impending events and suggesting recommended actions. The PMG is responsible for oversight and management of any investments rated in grades 3, 4, or 5. MC Advisors monitors and, when appropriate, changes the investment ratings assigned to each investment in our portfolio. In connection with our valuation process, MC Advisors reviews these investment performance risk ratings on a quarterly basis. The investment performance rating system is described as follows:
Our investment performance risk ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or reflect or represent any third-party assessment of any of our investments. In the event of a delinquency or a decision to rate an investment grade 4 or grade 5, the PMG, in consultation with the investment committee, will develop an action plan. Such a plan may require a meeting with the borrower’s management or the lender group to discuss reasons for the default and the steps management is undertaking to address the under-performance, as well as amendments and waivers that may be required. In the event of a dramatic deterioration of a credit, MC Advisors and the PMG will form a team or engage outside advisors to analyze, evaluate and take further steps to preserve our value in the credit. In this regard, we would expect to explore all options, including in a private equity sponsored investment, assuming certain responsibilities for the private equity sponsor or a formal sale of the business with oversight of the sale process by us. The PMG and the investment committee have extensive experience in running debt work-out transactions and bankruptcies. The following table shows the distribution of our investments on the 1 to 5 investment performance risk rating scale as of
79 The following table shows the distribution of our investments on the 1 to 5 investment performance risk rating scale as of December 31,
As of Results of Operations Operating results were as follows (in thousands):
80
Investment Income The composition of our investment income was as follows (in thousands):
The increase in investment income of income. The decrease in investment income of 81 Operating Expenses The composition of our operating expenses was as follows (in thousands):
82 The composition of our interest and other debt financing expenses, average outstanding balances and average stated interest rates (i.e. the rate in effect plus spread) were as follows (in thousands):
The increase in expenses of
Income Taxes, Including Excise Taxes We have elected to be treated as a RIC under Subchapter M of the Code and operate in a manner so as to qualify for the tax treatment available to RICs. To maintain qualification as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements and distribute to stockholders, for each taxable year, at least 90% of our “investment company taxable income,” which is generally our net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses. Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions from such current year taxable income into the next year and pay a 4% excise tax on such income, as required. To the extent that we determine that our estimated current year annual taxable income may exceed estimated current year dividend distributions, we accrue excise tax, if any, on estimated excess taxable income as such taxable income is earned. For both the three and Certain of our consolidated subsidiaries are subject to U.S. federal and state corporate-level income taxes. For both the three and 83 Net Realized Gain (Loss) During the three months ended gain (loss) on investments, respectively. During the three and We may enter into foreign currency forward contracts to reduce our exposure to foreign currency exchange rate fluctuations. During the three months ended Net Change in Unrealized Gain (Loss) For the three months ended During the three months ended
We estimate approximately For the six months ended June 30, 2022 and 2021, our investments had ($16.6) million and $9.9 million of net change in unrealized gain (loss), respectively. During the six months ended June 30, 2022, the net change in unrealized loss on investments was primarily attributable to overall market volatility and spread widening in the loan market, including approximately $4.1 million of unrealized losses attributable to our investment in SLF. Additionally, approximately $4.8 million in net unrealized losses were attributable to We estimate approximately $6.0 million of the net unrealized gain on investments during the six months ended June 30, 2021 was attributable to broad market movements and tightening of credit spreads in the loan markets. Approximately $3.9 million of these net unrealized gains were attributable to investments held in the portfolio directly, while approximately $2.1 million of these gains were attributable to our investment in SLF. Additionally, $3.8 million in net unrealized gain on investments was attributable to 84 portfolio companies that have underlying credit or fundamental performance concerns resulting in a risk rating of Grade 3, 4 or 5 on our investment performance risk rating scale. For the , respectively. For the Net Increase (Decrease) in Net Assets Resulting from Operations For the three months ended For the The that had underlying credit or fundamental performance concerns resulting in a risk rating of Grade 3, 4 or 5 on our investment performance risk rating scale. Liquidity and Capital Resources As of In accordance with the 1940 Act, we are permitted to borrow amounts such that our asset coverage ratio, as defined in the 1940 Act, is at least 150% after such borrowing. We were granted exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA prior to its dissolution from the asset coverage test under the 1940 Act during the period the SBA debentures were outstanding. As of Cash Flows For the 85 Capital Resources As a BDC, we distribute substantially all of our net income to our stockholders and have an ongoing need to raise additional capital for investment purposes. We intend to generate additional cash primarily from future offerings of securities, future borrowings and cash flows from operations, including income earned from investments in our portfolio companies. On both a short-term and long-term basis, our primary use of funds will be to invest in portfolio companies and make cash distributions to our stockholders. We may also use available funds to repay outstanding borrowings. As a BDC, we are generally not permitted to issue and sell our common stock at a price below net asset value (“NAV”) per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current NAV per share of our common stock if our board of directors (“Board”), including our independent directors, determines that such sale is in the best interests of us and our stockholders, and if our stockholders have approved such sales. On June outstanding. On June 24, 2015, our stockholders approved a proposal to authorize us to issue warrants, options or rights to subscribe to, convert to, or purchase our common stock in one or more offerings. This is a standing authorization and does not require annual re-approval by our stockholders. Stock Issuances: On May 12, 2017, we entered into at-the-market (“ATM”) equity distribution agreements with each of JMP Securities LLC (“JMP”) and FBR Capital Markets & Co. (“FBR”) (the “ATM Program”) through which we can sell, by means of ATM offerings, from time to time, up to $50.0 million of our common stock. On May 8, 2020, we entered into an amendment to the ATM Program to extend its term. All other material terms of the ATM Program remain unchanged. There were no stock issuances through the ATM Program during the six months ended June 30, 2022. During the Borrowings
Revolving Credit Facility: We have a $255.0 million revolving credit facility with ING Capital LLC, as agent. The revolving credit facility has an accordion feature which permits us, under certain circumstances to increase the size of the facility up to $400.0 million (subject to maintaining 150% asset coverage, as defined by the 1940 Act). The revolving credit facility is secured by a lien on all of our assets, including cash on hand, but excluding the assets of our wholly-owned subsidiary, MRCC Our ability to borrow under the revolving credit facility is subject to availability under the borrowing base, which permits us to borrow up to 72.5% of the fair market value of our portfolio company investments depending on the type of investment we hold and whether the investment is quoted. Our ability to borrow is also subject to certain concentration limits, and continued compliance with the representations, warranties and covenants given by us under the facility. The revolving credit facility contains certain financial and restrictive covenants, including, but not limited to, our maintenance of: (1) minimum consolidated total net assets at least equal to $150.0 million plus 65% of the net proceeds to us from sales of our equity securities after March 1, 2019; (2) a ratio of total assets (less total liabilities other than indebtedness) to total indebtedness of not less than 1.5 to 1; and (3) a senior debt coverage ratio of at least 2 to 1. The revolving credit facility also requires us to undertake customary indemnification obligations with respect to ING Capital LLC and other members of the lending group and to reimburse the lenders for expenses associated with entering into the credit facility. The revolving credit facility also has customary provisions regarding events of default, including events of default for nonpayment, change in control transactions at both Monroe Capital Corporation and MC Advisors, failure to comply with financial and negative covenants, and failure to maintain our relationship with MC Advisors. If we incur an event of default under the revolving credit facility and fail to remedy such default under any applicable grace period, if any, then the entire revolving credit facility could become immediately due and payable, which would materially and adversely affect our liquidity, financial condition, results of operations and cash flows. 86 Our revolving credit facility also imposes certain conditions that may limit the amount of our distributions to stockholders. Distributions payable in our common stock under the DRIP are not limited by the revolving credit facility. Distributions in cash or property other than common stock are generally limited to 115% of the amount of distributions required to maintain our status as a RIC. As of Borrowings under the revolving credit facility bear interest, at our election, at an annual rate of LIBOR (one-month, three-month or six-month at our discretion based on the term of the borrowing) plus 2.625% or at a daily rate equal to 1.625% per annum plus the greater of the prime interest rate, the federal funds rate plus 0.5% or LIBOR plus 1.0%, with a LIBOR floor of 0.5%. In addition to the stated interest rate on borrowings under the revolving credit facility, we are required to pay a commitment fee and certain conditional fees based on usage of the expanded borrowing base and usage of the asset coverage ratio flexibility. A commitment fee of 0.5% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is less than 35% of the then available maximum borrowing or a commitment fee of 1.0% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is greater than or equal to 35% of the then available maximum borrowing. As of
SBA Debentures: On March 1, 2022, MRCC SBIC fully repaid its outstanding SBA debentures utilizing a borrowing on our revolving credit facility and the restricted cash at MRCC SBIC. This repayment was accounted for as a debt extinguishment in accordance with ASC Subtopic 470-50, Debt – Modifications and Extinguishment (“ASC 470-50”), which resulted in a realized loss of
As of
Distributions Our Board will determine the timing and amount, if any, of our distributions. We intend to pay distributions on a quarterly basis. In order to avoid corporate-level tax on the income we distribute as a RIC, we must distribute to our stockholders at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, on an annual basis out of the assets legally available for such distributions. In addition, we also intend to distribute any realized net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) at least annually out of the assets legally available for such distributions. Distributions to stockholders for the three and In October 2012, we adopted an “opt out” dividend reinvestment plan (“DRIP”) for our common stockholders. When we declare a distribution, our stockholders’ cash distributions will automatically be reinvested in additional shares of our common stock unless a stockholder specifically “opts out” of our DRIP. If a stockholder opts out, that stockholder will receive cash distributions. Although distributions paid in the form of additional shares of our common stock will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, stockholders participating in our DRIP will not receive any corresponding cash distributions with which to pay any such applicable taxes. MRCC Senior Loan Fund I, LLC We co-invest with LSW in senior secured loans through SLF, an unconsolidated Delaware LLC. SLF is capitalized as underlying investment transactions are completed, taking into account available debt and equity commitments available for funding these investments. All portfolio and investment decisions in respect to SLF must be approved by the SLF investment committee, consisting of one representative of each of us and LSW. SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business. Investments held by SLF are measured at fair value using the same valuation methodologies as described below. Our investment is illiquid in nature as SLF does not allow for withdrawal from the LLC or the sale of a member’s interest unless approved by the board members of SLF. The full withdrawal of a member would result in an orderly wind-down of SLF. SLF’s profits and losses are allocated to us and LSW in accordance with the respective ownership interests. As of both As of both For the three and SLF has a senior secured revolving credit facility (as amended, the “SLF Credit Facility”) with Capital One, N.A., through its wholly-owned subsidiary MRCC Senior Loan Fund I Financing SPV, LLC (“SLF SPV”), 88 SLF does not pay any fees to MC Advisors or its affiliates; however, SLF has entered into an administration agreement with Monroe Capital Management Advisors, LLC (“MC Management”), pursuant to which certain loan servicing and administrative functions are delegated to MC Management. SLF may reimburse MC Management for its allocable share of overhead and other expenses incurred by MC Management. For the three and As of Below is a summary of SLF’s portfolio, followed by a listing of the individual investments in SLF’s portfolio as of
89 MRCC SENIOR LOAN FUND I, LLC CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)
(in thousands)
90 MRCC SENIOR LOAN FUND I, LLC CONSOLIDATED SCHEDULE OF INVESTMENTS- (continued) (unaudited)
(in thousands)
91 MRCC SENIOR LOAN FUND I, LLC CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued) (unaudited) June 30, 2022 (in thousands)
92 MRCC SENIOR LOAN FUND I, LLC CONSOLIDATED SCHEDULE OF INVESTMENTS December 31, 2021 (in thousands)
93 MRCC SENIOR LOAN FUND I, LLC CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued) December 31, 2021 (in thousands)
94
95 Below is certain summarized financial information for SLF as of
Related Party Transactions We have a number of business relationships with affiliated or related parties, including the following:
96
In addition, we have adopted a formal code of ethics that governs the conduct of MC Advisors’ officers, directors and employees. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and Maryland General Corporation Law. Commitments and Contingencies and Off-Balance Sheet Arrangements Commitments and Contingencies As of Off-Balance Sheet Arrangements Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have any off-balance sheet financings or liabilities. Market Trends
We have Target Market: We believe that small and middle-market companies in the United States with annual revenues between $10.0 million and $2.5 billion represent a significant growth segment of the U.S. economy and often require substantial capital investments to grow. Middle-market companies have generated a significant number of investment opportunities for investment funds managed or advised by Monroe Capital, and we believe that this market segment will continue to produce significant investment opportunities for us. Specialized Lending Requirements: We believe that several factors render many U.S. financial institutions ill-suited to lend to U.S. middle-market companies. For example, based on the experience of our management team, lending to U.S. middle-market companies (1) is generally more labor intensive than lending to larger companies due to the smaller size of each investment and the fragmented nature of information for such companies, (2) requires due diligence and underwriting practices consistent with the demands and economic limitations of the middle-market and (3) may also require more extensive ongoing monitoring by the lender. Demand for Debt Capital: We believe there is a large pool of uninvested private equity capital for middle-market companies. We expect private equity firms will seek to leverage their investments by combining equity capital with senior secured loans and mezzanine debt from other sources, such as us. 97 Competition from Other Lenders: We believe that many traditional bank lenders, in recent years, de-emphasized their service and product offerings to middle-market businesses in favor of lending to large corporate clients and managing capital market transactions. In addition, many commercial banks face significant balance sheet constraints as they seek to build capital and meet future regulatory capital requirements. These factors may result in opportunities for alternative funding sources to middle-market companies and therefore drive increased new investment opportunities for us. Conversely, there has been a significant amount of capital raised over the past several years dedicated to middle market lending which has increased competitive pressure in the BDC and investment company marketplace for senior and subordinated debt, which in turn could result in lower yields and weaker financial covenants for new assets. Pricing and Deal Structures: We believe that the volatility in global markets over the last several years and current macroeconomic issues including changes in bank regulations for middle-market banks has reduced access to, and availability of, debt capital to middle-market companies, causing a reduction in competition and generally more favorable capital structures and deal terms. Market Environment: We believe middle market investments are attractive in uncertain market environments such as the current market environment following the COVID-19 outbreak that began in late 2019 and early 2020, and that these investments have historically generated considerable yield premia with more favorable capital structures for lenders when compared to the market for large corporate loans.(1) On the other hand, we believe that the increased competition for direct lending to middle market businesses could result in less favorable pricing terms for our potential investments. If pricing, terms and structures weaken, we would expect to experience decreased net interest income, lower yields and increased risk of credit loss. However, we believe that Monroe Capital’s scale, product suite, entrenched relationships and strong market position will continue to allow us to find investment opportunities with attractive risk-adjusted returns.
98 Significant Accounting Estimates and Critical Accounting Policies Revenue Recognition We record interest and fee income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt securities with contractual PIK interest, we do not accrue PIK interest if the portfolio company valuation indicates that such PIK interest is not collectible. We do not accrue as a receivable interest on loans and debt securities if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount and market discount or premium are capitalized, and then we amortize such amounts using the effective interest method as interest income over the life of the investment. Upon the prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are recorded as interest income. We record prepayment premiums on loans and debt securities as interest income when we receive such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. We record fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service has been completed. Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from LLC and LP investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. Valuation of Portfolio Investments As a BDC, we generally invest in illiquid securities including debt and, to a lesser extent, equity securities of middle-market companies. Under procedures established by our Board, we value investments for which market quotations are readily available and within a recent date at such market quotations. When doing so, we determine whether the quote obtained is sufficient in accordance with generally accepted accounting principles in the United States of America to determine the fair value of the security. Debt and equity securities that are not publicly traded or whose market prices are not readily available or whose market prices are not regularly updated are valued at fair value as determined in good faith by our Board. Such determination of fair values may involve subjective judgments and estimates. Investments purchased within 60 days of maturity are valued at cost plus accreted discount, or minus amortized premium, which approximates fair value. Our Board is ultimately and solely responsible for determining the fair value of the portfolio investments that are not publicly traded, whose market prices are not readily available on a quarterly basis in good faith or in any other situation where portfolio investments require a fair value determination. Because we expect that there will not be a readily available market for many of the investments in our portfolio, we expect to value many of our portfolio investments at fair value as determined in good faith by our Board using a documented valuation policy and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. With respect to investments for which market quotations are not readily available, our Board undertakes a multi-step valuation process each quarter, as described below:
99
We generally use the income approach to determine fair value for loans where market quotations are not readily available, as long as it is appropriate. If there is deterioration in credit quality or a debt investment is in workout status, we may consider other factors in determining the fair value, including the value attributable to the debt investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. This liquidation analysis may also include probability weighting of alternative outcomes. We generally consider our debt to be performing if the borrower is not in default, the borrower is remitting payments in a timely manner, the loan is in covenant compliance and the loan is otherwise not deemed to be impaired. In determining the fair value of the performing debt, we consider fluctuations in current interest rates, the trends in yields of debt instruments with similar credit ratings, financial condition of the borrower, economic conditions and other relevant factors, both qualitative and quantitative. In the event that a debt instrument is not performing, as defined above, we will evaluate the value of the collateral utilizing the same framework described above for a performing loan to determine the value of the debt instrument. Under the income approach, discounted cash flow models are utilized to determine the present value of the future cash flow streams of our debt investments, based on future interest and principal payments as set forth in the associated loan agreements. In determining fair value under the income approach, we also consider the following factors: applicable market yields and leverage levels, credit quality, prepayment penalties, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, and changes in the interest rate environment and the credit markets that generally may affect the price at which similar investments may be made. Under the market approach, the enterprise value methodology is typically utilized to determine the fair value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which we derive a single estimate of enterprise value. In estimating the enterprise value of a portfolio company, we analyze various factors consistent with industry practice, including but not limited to original transaction multiples, the portfolio company’s historical and projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. Typically, the enterprise values of private companies are based on multiples of earnings before interest, income taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value. In addition, for certain debt investments, we may base our valuation on indicative bid and ask prices provided by an independent third-party pricing service. Bid prices reflect the highest price that we and others may be willing to pay. Ask prices represent the lowest price that we and others may be willing to accept. We generally use the midpoint of the bid/ask range as our best estimate of fair value of such investment. As of 100 Net Realized Gain or Loss and Net Change in Unrealized Gain or Loss We measure realized gain or loss by the difference between the net proceeds from the sale and the amortized cost basis of the investment, without regard to unrealized gain or loss previously recognized. Net change in unrealized gain or loss reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gain or loss, when gain or loss is realized. Additionally, we do not isolate the portion of the change in fair value resulting from foreign currency exchange rate fluctuations from the changes in fair values of the underlying investment. All fluctuations in fair value are included in net change in unrealized gain (loss) on our consolidated statements of operations. The impact resulting from changes in foreign exchange rates on the revolving credit facility borrowings is included in net change in unrealized gain (loss) on foreign currency and other transactions. Capital Gains Incentive Fee Pursuant to the terms of the Investment Advisory Agreement with MC Advisors, the incentive fee on capital gains earned on liquidated investments of our portfolio is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement). This fee equals 20% of our incentive fee capital gains (i.e., our realized capital gains on a cumulative basis from inception, calculated as of the end of the applicable period, net of all realized capital losses and unrealized capital depreciation on a cumulative basis), less the aggregate amount of any previously paid capital gains incentive fees. On a quarterly basis, we accrue for the capital gains incentive fee by calculating such fee as if it were due and payable as of the end of such period. While the Investment Advisory Agreement with MC Advisors neither includes nor contemplates the inclusion of unrealized gains in the calculation of the capital gains incentive fee, pursuant to an interpretation of an American Institute for Certified Public Accountants Technical Practice Aid for investment companies, we include unrealized gains in the calculation of the capital gains incentive fee expense and related accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to MC Advisors if our entire portfolio was liquidated at its fair value as of the balance sheet date even though MC Advisors is not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized. During the three and New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. Uncertainty with respect to the economic effects of the COVID-19 outbreak The majority of the loans in our portfolio have floating interest rates, and we expect that our loans in the future may also have floating interest rates. These loans are usually based on a floating LIBOR or SOFR and typically have interest rate re-set provisions that adjust applicable interest rates under such loans to current market rates on a monthly or quarterly basis. The majority of the loans in our current portfolio have interest rate floors which will effectively convert the loans to fixed rate loans in the event interest rates decrease. In addition, our revolving credit facility has a floating interest rate provision, whereas our 101 rates until maturity. We expect that other credit facilities into which we may enter in the future may also have floating interest rate provisions.
Assuming that the consolidated statement of assets and liabilities as of
Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments, including borrowing under the credit facility or other borrowings that could affect net increase in net assets resulting from operations, or net income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above. We may in the future hedge against interest rate fluctuations by using standard hedging instruments such as futures, options and forward contracts to the extent permitted under the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to the investments in our portfolio with fixed interest rates or interest rate floors. We may also have exposure to foreign currencies (currently the ITEM 4. CONTROLS AND PROCEDURES In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that, at the end of the period covered by our Quarterly Report on Form 10-Q, our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in the Company’s periodic reports. No change occurred in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended 102 PART II OTHER INFORMATION Item 1. Legal Proceedings Neither we, our subsidiaries nor our investment adviser are currently subject to any material legal proceedings. Item 1A. Risk Factors In addition to the other information set forth in this report, you should carefully consider the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, The Russian invasion of Ukraine may have a material adverse impact on us and our portfolio companies. On February 24, 2022, the President of Russia, Vladimir Putin, announced a military invasion of Ukraine. In response, countries worldwide, including the United States, have imposed sanctions against Russia on certain businesses and individuals, including, but not limited to, those in the banking, import and export sectors. This invasion has led, is currently leading, and for an unknown period of time will continue to lead to disruptions in local, regional, national, and global markets and economies affected thereby. These disruptions caused by the invasion have included, and may continue to include, political, social, and economic disruptions and uncertainties that may affect our business operations or the business operations of our portfolio companies. The COVID-19 pandemic has caused severe disruptions in the global economy, which has had, and may continue to have, a negative impact on our portfolio companies and our business and operations. In late 2019 and early 2020, COVID-19 emerged in China and spread rapidly to across the world, including to the United States. This outbreak has led and for an unknown period of time will continue to lead to disruptions in local, regional, national and global markets and economies affected thereby. With respect to the U.S. credit markets (in particular for middle market loans), this outbreak has resulted in, and until fully resolved is likely to continue to result in, the following among other things: (i) government imposition of various forms of “stay at home” orders and the closing of “non-essential” businesses, resulting in significant disruption to the businesses of many middle-market loan borrowers including supply chains, demand and practical aspects of their operations, as well as in lay-offs of employees, and, while these effects are hoped to be temporary, some effects could be persistent or even permanent; (ii) increased draws by borrowers on revolving lines of credit; (iii) increased requests by borrowers for amendments and waivers of their credit agreements to avoid default, increased defaults by such borrowers and/or increased difficulty in obtaining refinancing at the maturity dates of their loans; (iv) volatility and disruption of these markets including greater volatility in pricing and spreads and difficulty in valuing loans during periods of increased volatility, and liquidity issues; and (v) rapidly evolving proposals and/or actions by state and federal governments to address problems being experienced by the markets and by businesses and the economy in general that will not necessarily adequately address the problems facing the loan market and middle market businesses. This outbreak is having, and any future outbreaks could have, an adverse impact on our portfolio companies and us and on the markets and the economy in general, and that impact could be material. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter. It is impossible to determine the scope of the COVID-19 pandemic, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on us, MC Advisors and our portfolio companies. 103 The COVID-19 pandemic (including the preventative measures taken in response thereto) has to date (i) created significant business disruption issues for certain of our portfolio companies, and (ii) adversely impacted the value and performance of certain of our portfolio companies. The COVID-19 pandemic is continuing as of the filing date of this Quarterly Report, and its extended duration may have further adverse impacts on our portfolio companies after The effects described above on our portfolio companies have, for certain of our portfolio companies to date, impacted their ability to make payments on their loans on a timely basis and in some cases have required us to amend certain terms, including payment terms. In addition, an extended duration of the COVID-19 pandemic may impact the ability of our portfolio companies to continue making their loan payments on a timely basis or meeting their loan covenants. The inability of portfolio companies to make timely payments or meet loan covenants may in the future require us to undertake similar amendment actions with respect to other of our investments or to restructure our investments. The amendment or restructuring of our investments may include the need for us to make additional investments in our portfolio companies (including debt or equity investments) beyond any existing commitments, exchange debt for equity, or change the payment terms of our investments to permit a portfolio company to pay a portion of its interest through payment-in-kind, which would defer the cash collection of such interest and add it to the principal balance, which would generally be due upon repayment of the outstanding principal.
The COVID-19 pandemic has adversely impacted the fair value of certain of our investments as of The volatility and disruption to the global economy from the COVID-19 pandemic has affected, and may continue to affect, the pace of our investment activity, which may have a material adverse impact on our results of operations. Such volatility and disruption have also led to the increased credit spreads in the private debt capital markets. Further, from an operational perspective, MC Advisors’ investment professionals are currently partially working remotely. An extended period of remote work arrangements could strain our business continuity plans, introduce operational risk, including but not limited to cybersecurity risks, and impair our ability to manage our business. In addition, we are highly dependent on third party service providers for certain communication and information systems. As a result, we rely upon the successful implementation and execution of the business continuity planning of such providers in the current environment. If one or more of these third parties to whom we outsource certain critical business activities experience operational failures as a result of the impacts from the spread of COVID-19, or claim that they cannot perform due to a force majeure, it may have a material adverse effect on our business, financial condition, results of operations, liquidity and cash flows. 104 The 1940 Act allows us to incur additional leverage, which could increase the risk of investing in us. The 1940 Act generally prohibits us from incurring indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed On June 20, 2018, our stockholders approved the application of the modified asset coverage requirements, as approved by our board of directors on March 27, 2018, and we became subject to the 150% minimum asset coverage ratio, effective June 21, 2018. Leverage is generally considered a speculative investment technique and may increase the risk of investing in our securities. Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, you will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to pay distributions, scheduled debt payments or other payments related to our securities. The effects of leverage would cause any decrease in net asset value for any losses to be greater than any increase in net asset value for any corresponding gains. If we incur additional leverage, you will experience increased risks of investing in our common stock. We maintain a revolving credit facility and use other borrowed funds to make investments or fund our business operations, which exposes us to risks typically associated with leverage and increases the risk of investing in us. We maintain a revolving credit facility, have issued debt securities and may borrow money, including through the issuance of additional debt securities or preferred stock, to leverage our capital structure, which is generally considered a speculative investment technique. As a result:
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The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below.
We are subject to risks associated with our revolving credit facility and the terms of our revolving credit facility may contractually limit our ability to incur additional indebtedness. Our revolving credit facility, as amended, imposes certain conditions that may limit the amount of our distributions to stockholders. Distributions payable in our common stock under our dividend reinvestment plan are not limited by the revolving credit facility. Distributions in cash or property other than our common stock are generally limited to 115% of the amount of distributions required to maintain our ability to be subject to taxation as a RIC. We are required under the revolving credit facility to maintain our ability to be subject to taxation as a RIC. The revolving credit facility requires us to comply with certain financial and operational covenants, including asset coverage ratios and a minimum net worth. For example, the revolving credit facility requires that we maintain an asset coverage ratio of at least 1.5 to 1 and a senior debt coverage ratio of at least 2 to 1 at all times. We may divert cash to pay the lenders in amounts sufficient to cause these tests to be satisfied. Our compliance with these covenants depends on many factors, some of which, such as market conditions, are beyond our control. Our ability to sell our investments is also limited under the revolving credit facility. Under the revolving credit facility, the sale of any portfolio investment may not cause our covered debt amount to exceed our borrowing base. As a result, there may be times or circumstances during which we are unable to sell investments, pay distributions or take other actions that might be in our best interests. Availability of borrowings under the revolving credit facility is linked to the valuation of the collateral pursuant to a borrowing base mechanism. As such, declines in the fair market value of our investments which are collateral to the revolving credit facility may reduce availability under our revolving credit facility. 106 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds None. Item 3. Defaults Upon Senior Securities None. Item 4. Mine Safety Disclosures None. Item 5. Other Information None. 107 Item 6. Exhibits
108 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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