Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
FORM10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended JuneSeptember 30, 20192023
or
|
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number:000-55660814-01307
Goldman Sachs Private Middle Market Credit II LLC
(Exact Name of Registrant as Specified in Its Charter)
Delaware | 83-3053002 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
200 West Street, New York, New York | 10282 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (212)902-0300(312) 655-4419
Not Applicable
Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report.
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
None | None | None |
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 yes☒ no ☐ NO X
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of RegulationS-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). YESyes ☒ no ☐ NO ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-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 Rule12b-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. X☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Act). YES ☐ NO X☒
Securities registered pursuant to Section 12(b)As of November 7, 2023, there were 13,854,750 units of the Act: None
The number of the registrant’s limited liability companycompany's common units outstanding asoutstanding.
Table of August 1, 2019 was 1,155,852.Contents
GOLDMAN SACHS PRIVATE MIDDLE MARKET CREDIT II LLC
QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2023
INDEX | PAGE | ||||||||
Cautionary Statement Regarding Forward-Looking Statements | 3 | ||||||||
PART I | 4 | ||||||||
ITEM 1. | 4 | ||||||||
| 4 | ||||||||
5 | |||||||||
6 | |||||||||
7 | |||||||||
| 8 | ||||||||
25 | |||||||||
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 44 | |||||||
ITEM 3. | 57 | ||||||||
ITEM 4. | 57 | ||||||||
PART II | 58 | ||||||||
ITEM 1. | 58 | ||||||||
ITEM 1A. | 58 | ||||||||
ITEM 2. | 58 | ||||||||
ITEM 3. | 58 | ||||||||
ITEM 4. | 58 | ||||||||
ITEM 5. | 58 | ||||||||
ITEM 6. | 58 | ||||||||
60 |
2
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue” or “believe” or the negatives of, or other variations on, these terms or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. Our forward-looking statements include information in this report regarding general domestic and global economic conditions, our future financing plans, our ability to operate as a business development company (“BDC”) and the expected performance of, and the yield on, our portfolio companies. There may be events in the future, however, that we are not able to predict accurately or control. The factors listed under “Risk Factors” of Amendment No. 1 toin this report, in our Registration Statementannual report on Form 10, filed10-K for the year ended December 31, 2022 and in our quarterly reports on Form 10-Q for the quarters ended March 31, 2023 and June 21, 2019,30, 2023, as well as any cautionary language in this report, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events described in these risk factors and elsewhere in this report could have a material adverse effect on our business, results of operations and financial position. Any forward-looking statement made by us in this report speaks only as of the date of this report. Factors or events that could cause our actual results to differ from our forward-looking statements may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the U.S. Securities and Exchange Commission (the “SEC”), including annual reports on Form10-K, registration statements on Form N-2, quarterly reports on Form10-Q and current reports on Form8-K. Under The safe harbor provisions of Section 21E(b)(2)(B)21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995which preclude civil liability for certain forward-looking statements, do not apply to the forward-looking statements made in periodic reports we file under the Exchange Act, such as this quarterly report on Form10-Q.
because we are an investment company. The following factors are among those that may cause actual results to differ materially from our forward-looking statements:
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our expected financings and investments;
the use of borrowed money to finance a portion of our investments;
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3
3
|
ITEM 1. FINANCIAL STATEMENTS
Goldman Sachs Private Middle Market Credit II LLC
StatementConsolidated Statements of Financial Condition
(in thousands, except unit and per unit amounts)
| September 30, 2023 (Unaudited) |
|
| December 31, 2022 |
| |||||||
June 30, 2019 (unaudited) |
|
|
|
|
|
| ||||||
Assets |
|
|
|
|
|
| ||||||
Investments, at fair value |
|
|
|
|
|
| ||||||
Non-controlled/non-affiliated investments (cost of $85,433) | $ | 85,368 | ||||||||||
Investments in affiliated money market fund (cost of $659) | 659 | |||||||||||
Non-controlled/non-affiliated investments (cost of $2,639,468 and $2,691,993) |
| $ | 2,575,649 |
|
| $ | 2,637,489 |
| ||||
Non-controlled affiliated investments (cost of $17,967 and $10,576) |
|
| 18,571 |
|
|
| 10,708 |
| ||||
Total investments, at fair value (cost of $2,657,435 and $2,702,569) |
|
| 2,594,220 |
|
|
| 2,648,197 |
| ||||
Investments in affiliated money market fund (cost of $153,923 and $122,499) |
|
| 153,923 |
|
|
| 122,499 |
| ||||
Cash | 77,595 |
|
| 10,283 |
|
|
| 36,657 |
| |||
Receivable for common units sold | 762 | |||||||||||
Interest and dividends receivable fromnon-controlled/affiliated investments andnon-controlled/non-affiliated investments | 226 | |||||||||||
Interest and dividends receivable |
|
| 21,474 |
|
|
| 32,763 |
| ||||
Deferred financing costs | 1,151 |
|
| 9,228 |
|
|
| 7,215 |
| |||
Deferred offering costs | 842 | |||||||||||
Other assets | 3 |
|
| 470 |
|
|
| 2,680 |
| |||
| ||||||||||||
Total assets | $ | 166,606 |
| $ | 2,789,598 |
|
| $ | 2,850,011 |
| ||
| ||||||||||||
Liabilities |
|
|
|
|
|
| ||||||
Debt | $ | 80,900 |
| $ | 1,465,376 |
|
| $ | 1,465,196 |
| ||
Interest and other debt expenses payable | 352 |
|
| 30,356 |
|
|
| 24,117 |
| |||
Management fees payable | 154 |
|
| 4,647 |
|
|
| 4,598 |
| |||
Accrued offering costs | 1,071 | |||||||||||
Accrued organization costs | 147 | |||||||||||
Incentive fees payable |
|
| 46,255 |
|
|
| 33,111 |
| ||||
Distribution payable |
|
| — |
|
|
| 78,068 |
| ||||
Directors’ fees payable | 19 |
|
| 70 |
|
|
| — |
| |||
Accrued expenses and other liabilities | 252 |
|
| 3,673 |
|
|
| 4,411 |
| |||
| ||||||||||||
Total liabilities | $ | 82,895 |
| $ | 1,550,377 |
|
| $ | 1,609,501 |
| ||
| ||||||||||||
Commitments and Contingencies (Note 7) | ||||||||||||
Members’ Capital | ||||||||||||
Preferred units (0 units issued and outstanding) | $ | – | ||||||||||
Common units (849,211 units issued and outstanding as of June 30, 2019) | 84,407 | |||||||||||
Distributable earnings | (696 | ) | ||||||||||
| ||||||||||||
TOTAL MEMBERS’ CAPITAL | $ | 83,711 | ||||||||||
| ||||||||||||
TOTAL LIABILITIES AND MEMBERS’ CAPITAL | $ | 166,606 | ||||||||||
| ||||||||||||
Commitments and contingencies (Note 7) |
|
|
|
|
|
| ||||||
Members’ capital |
|
|
|
|
|
| ||||||
Preferred units (0 units issued and outstanding) |
| $ | — |
|
| $ | — |
| ||||
Common units (13,854,750 and 13,694,584 units issued and outstanding as of September 30, 2023 and December 31, 2022) |
|
| 1,320,430 |
|
|
| 1,305,672 |
| ||||
Distributable earnings (loss) |
|
| (81,209 | ) |
|
| (65,162 | ) | ||||
Total members’ capital |
| $ | 1,239,221 |
|
| $ | 1,240,510 |
| ||||
Total liabilities and members’ capital |
| $ | 2,789,598 |
|
| $ | 2,850,011 |
| ||||
Net asset value per unit | $ | 98.58 |
| $ | 89.44 |
|
| $ | 90.58 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
4
4
Goldman Sachs Private Middle Market Credit II LLC
StatementConsolidated Statements of Operations
(in thousands, except unit and per unit amounts)
(Unaudited)
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 |
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||||||
Investment Income: | |||||||||||||||||||
|
| September 30, 2023 |
|
| September 30, 2022 |
|
| September 30, 2023 |
| September 30, 2022 |
| ||||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Fromnon-controlled/non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest income | $ | 374 |
| $ | 74,039 |
|
| $ | 60,036 |
|
| $ | 217,479 |
| $ | 149,679 |
| ||
Payment-in-kind income |
|
| 6,433 |
|
|
| 4,348 |
|
|
| 18,953 |
| 10,766 |
| |||||
Other income | 5 |
|
| 679 |
|
|
| 931 |
|
|
| 2,239 |
| 2,628 |
| ||||
| |||||||||||||||||||
Total investment income fromnon-controlled/non-affiliated investments | 379 | ||||||||||||||||||
Fromnon-controlled affiliated investments: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Dividend income | 50 |
|
| 2,093 |
|
|
| 240 |
|
|
| 5,222 |
| 240 |
| ||||
| |||||||||||||||||||
Total investment income fromnon-controlled affiliated investments | 50 | ||||||||||||||||||
| |||||||||||||||||||
Interest income |
|
| 340 |
|
|
| — |
|
|
| 906 |
| — |
| |||||
Other income |
|
| 9 |
|
|
| — |
|
|
| 30 |
|
| — |
| ||||
Total investment income | $ | 429 |
| $ | 83,593 |
|
| $ | 65,555 |
|
| $ | 244,829 |
| $ | 163,313 |
| ||
| |||||||||||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest and other debt expenses | $ | 248 |
| $ | 33,384 |
|
| $ | 21,769 |
|
| $ | 92,423 |
| $ | 48,910 |
| ||
Management fees | 154 |
|
| 4,647 |
|
|
| 4,353 |
|
|
| 13,963 |
| 12,058 |
| ||||
Offering costs | 239 | ||||||||||||||||||
Organization expenses | 157 | ||||||||||||||||||
Incentive fees |
|
| 4,226 |
|
|
| 2,714 |
|
|
| 13,144 |
| 9,059 |
| |||||
Professional fees | 118 |
|
| 548 |
|
|
| 398 |
|
|
| 1,406 |
| 1,124 |
| ||||
Administration, custodian and transfer agent fees | 107 | ||||||||||||||||||
Directors’ fees | 19 |
|
| 73 |
|
|
| 74 |
|
|
| 221 |
| 217 |
| ||||
Other expenses | 18 | ||||||||||||||||||
| |||||||||||||||||||
Other general and administrative expenses |
|
| 749 |
|
|
| 565 |
|
|
| 2,139 |
|
| 1,814 |
| ||||
Total expenses | $ | 1,060 |
| $ | 43,627 |
|
| $ | 29,873 |
|
| $ | 123,296 |
| $ | 73,182 |
| ||
| |||||||||||||||||||
NET INVESTMENT LOSS | $ | (631 | ) | ||||||||||||||||
Net investment income |
| $ | 39,966 |
|
| $ | 35,682 |
|
| $ | 121,533 |
| $ | 90,131 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gains (losses): |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net realized gain (loss) from: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Non-controlled/non-affiliated investments | $ | – |
| $ | 69 |
|
| $ | (1 | ) |
| $ | (37,283 | ) | $ | (5,326 | ) | ||
Foreign currency transactions |
|
| (14 | ) |
|
| (112 | ) |
|
| (6 | ) |
| (113 | ) | ||||
Net change in unrealized appreciation (depreciation) from: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Non-controlled/non-affiliated investments | (65 | ) |
|
| (17,103 | ) |
|
| (21,933 | ) |
|
| (9,315 | ) |
| (36,461 | ) | ||
| |||||||||||||||||||
Non-controlled affiliated investments |
|
| 211 |
|
|
| — |
|
|
| 472 |
| — |
| |||||
Foreign currency translations |
|
| 841 |
|
|
| 1,606 |
|
|
| (141 | ) |
| 3,059 |
| ||||
Net realized and unrealized gains (losses) | $ | (65 | ) |
| $ | (15,996 | ) |
| $ | (20,440 | ) |
| $ | (46,273 | ) | $ | (38,841 | ) | |
| |||||||||||||||||||
NET DECREASE IN MEMBERS’ CAPITAL RESULTING FROM OPERATIONS | $ | (696 | ) | ||||||||||||||||
| |||||||||||||||||||
Net investment loss per unit (basic and diluted) | $ | (2.09 | ) | ||||||||||||||||
Earnings (loss) per unit (basic and diluted) | $ | (2.31 | ) | ||||||||||||||||
(Provision) benefit for taxes on unrealized appreciation/depreciation on investments |
|
| (20 | ) |
|
| 133 |
|
|
| (777 | ) |
| 39 |
| ||||
Net increase in members’ capital from operations |
| $ | 23,950 |
|
| $ | 15,375 |
|
| $ | 74,483 |
| $ | 51,329 |
| ||||
Weighted average units outstanding | 301,230 |
|
| 13,854,750 |
|
|
| 12,029,671 |
|
|
| 13,767,333 |
| 10,919,869 |
| ||||
Basic and diluted net investment income per unit |
| $ | 2.88 |
|
| $ | 2.97 |
|
| $ | 8.83 |
| $ | 8.25 |
| ||||
Basic and diluted earnings (loss) per unit |
| $ | 1.73 |
|
| $ | 1.28 |
|
| $ | 5.41 |
| $ | 4.70 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
5
5
Goldman Sachs Private Middle Market Credit II LLC
StatementConsolidated Statements of Changes in Members’ Capital
(in thousands, except unit and per unit amounts)
(Unaudited)
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 | ||||
Members’ Capital at beginning of period | $ | – | ||
Increase (decrease) in Members’ Capital resulting from operations: | ||||
Net investment loss | $ | (631 | ) | |
Net realized gain (loss) | – | |||
Net change in unrealized appreciation (depreciation) | (65 | ) | ||
|
|
| ||
Net increase (decrease) in Members’ Capital resulting from operations | $ | (696 | ) | |
|
|
| ||
Distributions to Unitholders from: | ||||
Distributable earnings | $ | – | ||
|
|
| ||
Total distributions to Unitholders | $ | – | ||
|
|
| ||
Capital transactions: | ||||
Issuance of units (849,211 units) | $ | 84,407 | ||
|
|
| ||
Net increase in Members’ Capital resulting from capital transactions | $ | 84,407 | ||
|
|
| ||
TOTAL INCREASE (DECREASE) IN MEMBERS’ CAPITAL | $ | 83,711 | ||
|
|
| ||
Members’ Capital at end of period | $ | 83,711 | ||
|
|
|
|
| For the Three Months Ended |
|
| For the Nine Months Ended |
| ||||||||||
|
| September 30, 2023 |
|
| September 30, 2022 |
|
| September 30, 2023 |
|
| September 30, 2022 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Members’ capital at beginning of period |
| $ | 1,264,301 |
|
| $ | 1,094,510 |
|
| $ | 1,240,510 |
|
| $ | 985,148 |
|
Increase in members’ capital from operations: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net investment income |
| $ | 39,966 |
|
| $ | 35,682 |
|
| $ | 121,533 |
|
| $ | 90,131 |
|
Net realized gain (loss) |
|
| 55 |
|
|
| (113 | ) |
|
| (37,289 | ) |
|
| (5,439 | ) |
Net change in unrealized appreciation (depreciation) |
|
| (16,051 | ) |
|
| (20,327 | ) |
|
| (8,984 | ) |
|
| (33,402 | ) |
(Provision) benefit for unrealized appreciation/depreciation on investments |
|
| (20 | ) |
|
| 133 |
|
|
| (777 | ) |
|
| 39 |
|
Net increase in members’ capital from operations |
| $ | 23,950 |
|
| $ | 15,375 |
|
| $ | 74,483 |
|
| $ | 51,329 |
|
Distributions to unitholders from: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Distributable earnings |
| $ | (49,030 | ) |
| $ | (30,917 | ) |
| $ | (90,530 | ) |
| $ | (60,816 | ) |
Total distributions to unitholders |
| $ | (49,030 | ) |
| $ | (30,917 | ) |
| $ | (90,530 | ) |
| $ | (60,816 | ) |
Capital transactions: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Issuance of units |
| $ | — |
|
| $ | 147,581 |
|
| $ | 14,758 |
|
| $ | 250,888 |
|
Net increase in members’ capital from capital transactions |
| $ | — |
|
| $ | 147,581 |
|
| $ | 14,758 |
|
| $ | 250,888 |
|
Total increase in members’ capital |
| $ | (25,080 | ) |
| $ | 132,039 |
|
| $ | (1,289 | ) |
| $ | 241,401 |
|
Members’ capital at end of period |
| $ | 1,239,221 |
|
| $ | 1,226,549 |
|
| $ | 1,239,221 |
|
| $ | 1,226,549 |
|
Distributions per unit |
| $ | 3.54 |
|
| $ | 2.72 |
|
| $ | 6.57 |
|
| $ | 5.62 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
6
Goldman Sachs Private Middle Market Credit II LLC
StatementConsolidated Statements of Cash Flows
(in thousands, except unit and per unit amounts)
(Unaudited)
| For the Nine Months Ended |
| ||||||||||
For the period of April 11, 2019 (commencement of operations) to June 30, 2019 |
| September 30, 2023 |
|
| September 30, 2022 |
| ||||||
|
|
|
|
|
| |||||||
Cash flows from operating activities: |
|
|
|
|
|
| ||||||
Net increase (decrease) in Members’ Capital resulting from operations: | $ | (696 | ) | |||||||||
Adjustments to reconcile net increase (decrease) in Members’ Capital resulting from operations to net cash provided by (used for) operating activities: | ||||||||||||
Net increase in members’ capital from operations: |
| $ | 74,483 |
|
| $ | 51,329 |
| ||||
Adjustments to reconcile net increase (decrease) in members’ capital from operations to net cash provided by (used for) operating activities: |
|
|
|
|
|
| ||||||
Purchases of investments | (89,377 | ) |
|
| (129,949 | ) |
|
| (579,106 | ) | ||
Payment-in-kind interest capitalized |
|
| (17,892 | ) |
|
| (10,815 | ) | ||||
Investments in affiliated money market fund, net | (659 | ) |
|
| (31,424 | ) |
|
| (66,170 | ) | ||
Proceeds from sales of investments and principal repayments | 3,958 |
|
| 164,713 |
|
|
| 142,187 |
| |||
Net realized (gain) loss on investments | – | |||||||||||
Net realized (gain) loss |
|
| 37,283 |
|
|
| 5,326 |
| ||||
Net change in unrealized (appreciation) depreciation on investments | 65 |
|
| 8,843 |
|
|
| 36,461 |
| |||
Net change in unrealized (appreciation) depreciation on foreign currency transactions |
|
| (20 | ) |
|
| 7 |
| ||||
Amortization of premium and accretion of discount, net | (14 | ) |
|
| (9,021 | ) |
|
| (9,154 | ) | ||
Amortization of deferred financing costs | 69 |
|
| 2,525 |
|
|
| 2,488 |
| |||
Amortization of deferred offering costs | 239 | |||||||||||
Increase (decrease) in operating assets and liabilities: | ||||||||||||
(Increase) decrease in receivable for common units sold | (762 | ) | ||||||||||
Change in operating assets and liabilities: |
|
|
|
|
|
| ||||||
(Increase) decrease in interest and dividends receivable | (226 | ) |
|
| 11,289 |
|
|
| (3,001 | ) | ||
(Increase) decrease in other assets | (3 | ) |
|
| 2,210 |
|
|
| (1,291 | ) | ||
Increase (decrease) in interest and other debt expenses payable | 87 |
|
| 6,238 |
|
|
| 10,161 |
| |||
Increase (decrease) in management fees payable | 154 |
|
| 49 |
|
|
| 591 |
| |||
Increase (decrease) in accrued organization costs | 147 | |||||||||||
Increase (decrease) in incentive fees payable |
|
| 13,144 |
|
|
| 9,059 |
| ||||
Increase (decrease) in directors’ fees payable | 19 |
|
| 70 |
|
|
| — |
| |||
Increase (decrease) in accrued expenses and other liabilities | 252 |
|
| (738 | ) |
|
| 2,433 |
| |||
| ||||||||||||
Net cash provided by (used for) operating activities | $ | (86,747 | ) |
| $ | 131,803 |
|
| $ | (409,495 | ) | |
| ||||||||||||
Cash flows from financing activities: |
|
|
|
|
|
| ||||||
Proceeds from issuance of common units | $ | 84,407 |
| $ | 14,758 |
|
| $ | 250,888 |
| ||
Offering costs paid | (10 | ) | ||||||||||
Distributions paid |
|
| (168,598 | ) |
|
| (89,179 | ) | ||||
Financing costs paid | (955 | ) |
|
| (4,537 | ) |
|
| (2,838 | ) | ||
Borrowings on debt | 136,700 |
|
| 76,680 |
|
|
| 513,036 |
| |||
Repayments of debt | (55,800 | ) |
|
| (76,500 | ) |
|
| (276,076 | ) | ||
| ||||||||||||
Net cash provided by (used for) financing activities | $ | 164,342 |
| $ | (158,197 | ) |
| $ | 395,831 |
| ||
| ||||||||||||
Net increase (decrease) in cash | $ | 77,595 |
| $ | (26,394 | ) |
| $ | (13,664 | ) | ||
Effect of foreign exchange rate changes on cash and cash equivalents |
|
| 20 |
|
|
| (7 | ) | ||||
Cash, beginning of period | – |
|
| 36,657 |
|
|
| 31,602 |
| |||
| ||||||||||||
Cash, end of period | $ | 77,595 |
| $ | 10,283 |
|
| $ | 17,931 |
| ||
| ||||||||||||
Supplemental andnon-cash financing activities | ||||||||||||
Supplemental and non-cash activities |
|
|
|
|
|
| ||||||
Interest expense paid | $ | 91 |
| $ | 82,140 |
|
| $ | 34,602 |
| ||
Accrued but unpaid deferred financing costs | $ | 265 | ||||||||||
Accrued but unpaid offering costs | $ | 1,071 | ||||||||||
Exchange of investments |
| $ | 25,934 |
|
| $ | 80,545 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
7
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of JuneSeptember 30, 20192023
(in thousands, except unit and per unit amounts)
(Unaudited)
Portfolio Company | Industry | Interest Rate (+) | Reference Rate and Spread (+) | Maturity | Par Amount (++) | Cost | Fair Value | |||||||||||||||
Investments at Fair Value – 101.98% # |
| |||||||||||||||||||||
Corporate Debt – 101.98% |
| |||||||||||||||||||||
1st Lien/Senior Secured Debt – 101.98% |
| |||||||||||||||||||||
CorePower Yoga, LLC(1) | Diversified Consumer Services | 7.08% | L + 4.75% | 05/14/2025 | $ | 7,389 | $ | 7,279 | $ | 7,278 | ||||||||||||
CorePower Yoga, LLC(1) (2) (3) | Diversified Consumer Services | L + 4.75% | 05/14/2025 | 633 | (9 | ) | (9 | ) | ||||||||||||||
CorePower Yoga, LLC(1) (2) (3) | Diversified Consumer Services | L + 4.75% | 05/14/2025 | 2,111 | (31 | ) | (32 | ) | ||||||||||||||
GlobalTranz Enterprises LLC(1) | Road & Rail | 7.39% | L + 5.00% | 05/15/2026 | 7,215 | 7,072 | 6,945 | |||||||||||||||
GlobalTranz Enterprises LLC(1) (2) (3) | Road & Rail | L + 5.00% | 05/15/2026 | 1,862 | (37 | ) | (70 | ) | ||||||||||||||
Picture Head Midco LLC(1) (4) | Media | 9.15% | L + 6.75%; 1.00% Floor | 08/31/2023 | 26,700 | 26,037 | 26,233 | |||||||||||||||
Picture Head Midco LLC(1) (4) | Media | 9.14% | L + 6.75%; 1.00% Floor | 08/31/2023 | 1,980 | 1,980 | 1,945 | |||||||||||||||
Riverpoint Medical, LLC(1) | Health Care Equipment & Supplies | 7.39% | L + 5.00%, 1.00% Floor | 06/23/2025 | 9,933 | 9,884 | 9,834 | |||||||||||||||
Riverpoint Medical, LLC(1) (2) (3) | Health Care Equipment & Supplies | L + 5.00%, 1.00% Floor | 06/23/2025 | 1,806 | (9 | ) | (18 | ) | ||||||||||||||
Wolfpack IP Co.(1) (5) | Real Estate Management & Development | 8.90% | L + 6.50%; 1.00% Floor | 06/13/2025 | 34,011 | 33,334 | 33,330 | |||||||||||||||
Wolfpack IP Co.(1) (2) (3) (5) | Real Estate Management & Development | L + 6.50%; 1.00% Floor | 06/13/2025 | 3,401 | (67 | ) | (68 | ) | ||||||||||||||
|
|
|
| |||||||||||||||||||
Total 1st Lien/Senior Secured Debt | 85,433 | 85,368 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||
Total Corporate Debt |
| 85,433 | 85,368 | |||||||||||||||||||
Yield | Shares | Cost | Fair Value | |||||||||||||||||||
Investments in Affiliated Money Market Fund– 0.79% # | ||||||||||||||||||||||
Goldman Sachs Financial Square Government Fund – Institutional Shares^^^ | 2.26%(6) | 659,254 | $ | 659 | $ | 659 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
Total Investments in Affiliated Money Market Fund | 659 | 659 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||
TOTAL INVESTMENTS – 102.77% | $ | 86,092 | $ | 86,027 | ||||||||||||||||||
|
|
|
| |||||||||||||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS – (2.77%) | $ | (2,316 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||
NET ASSETS – 100.00% | $ | 83,711 | ||||||||||||||||||||
|
|
Investment (1) | Industry | Interest | Reference Rate and | Maturity |
| Par(3) |
| Cost |
| Fair |
| Footnotes | |||
1st Lien/Senior Secured Debt - 202.09% |
|
|
|
|
|
|
|
|
|
|
|
| |||
1272775 B.C. LTD. (dba Everest Clinical Research) | Professional Services | 11.54% | S + 6.00% | 11/06/26 | $ |
| 8,480 |
| $ | 8,411 |
| $ | 8,374 |
| (4) (5) (6) (7) |
1272775 B.C. LTD. (dba Everest Clinical Research) | Professional Services | 14.50% | P + 6.00% | 11/06/26 |
|
| 846 |
|
| 805 |
|
| 801 |
| (4) (5) (6) (7) (8) |
1272775 B.C. LTD. (dba Everest Clinical Research) | Professional Services | 12.20% | CDN P + 4.75% | 11/06/26 | CAD |
| 418 |
|
| 312 |
|
| 304 |
| (4) (5) (6) (7) |
3SI Security Systems, Inc. | Commercial Services & Supplies | 12.05% | S + 6.50% | 12/16/26 |
|
| 2,033 |
|
| 2,014 |
|
| 1,927 |
| (6) (7) |
Abacus Data Holdings, Inc. (dba Clutch Intermediate Holdings) | Software | 11.72% | S + 6.25% | 03/10/27 |
|
| 14,555 |
|
| 14,339 |
|
| 14,264 |
| (5) (6) (7) |
Abacus Data Holdings, Inc. (dba Clutch Intermediate Holdings) | Software | 11.72% | S + 6.25% | 03/10/27 |
|
| 1,526 |
|
| 1,515 |
|
| 1,495 |
| (5) (6) (7) |
Abacus Data Holdings, Inc. (dba Clutch Intermediate Holdings) | Software | 11.72% | S + 6.25% | 03/10/27 |
|
| 1,100 |
|
| 1,084 |
|
| 1,078 |
| (5) (6) (7) |
Acquia, Inc. | Software | 12.34% | S + 7.00% | 10/31/25 |
|
| 24,940 |
|
| 24,694 |
|
| 24,504 |
| (5) (6) (7) |
Acquia, Inc. | Software | 12.72% | S + 7.00% | 10/31/25 |
|
| 1,933 |
|
| 935 |
|
| 917 |
| (5) (6) (7) (8) |
Acuity Specialty Products, Inc. (dba Zep Inc.) | Chemicals | 9.40% | S + 4.00% | 10/02/28 |
|
| 15,410 |
|
| 15,410 |
|
| 14,524 |
| (5) (6) (7) |
Admiral Buyer, Inc. (dba Fidelity Payment Services) | Diversified Financial Services | 10.89% | S + 5.50% | 05/08/28 |
|
| 23,948 |
|
| 23,562 |
|
| 23,709 |
| (5) (6) (7) |
Admiral Buyer, Inc. (dba Fidelity Payment Services) | Diversified Financial Services |
| S + 5.50% | 05/08/28 |
|
| 2,330 |
|
| (36 | ) |
| (23 | ) | (5) (7) (8) |
Admiral Buyer, Inc. (dba Fidelity Payment Services) | Diversified Financial Services |
| S + 5.50% | 05/08/28 |
|
| 6,510 |
|
| (50 | ) |
| (65 | ) | (5) (7) (8) |
AQ Helios Buyer, Inc. (dba SurePoint) | Software | 12.64% | S + 7.00% | 07/01/26 |
|
| 35,280 |
|
| 34,843 |
|
| 34,222 |
| (5) (6) (7) |
AQ Helios Buyer, Inc. (dba SurePoint) | Software | 13.63% | S + 8.00% | 07/01/26 |
|
| 5,900 |
|
| 5,900 |
|
| 5,856 |
| (5) (6) (7) |
AQ Helios Buyer, Inc. (dba SurePoint) | Software | 13.62% | S + 8.00% | 07/01/26 |
|
| 2,127 |
|
| 2,127 |
|
| 2,111 |
| (5) (6) (7) |
AQ Helios Buyer, Inc. (dba SurePoint) | Software |
| S + 7.00% | 07/01/26 |
|
| 4,160 |
|
| (46 | ) |
| (125 | ) | (5) (6) (7) (8) |
Argos Health Holdings, Inc | Health Care Providers & Services | 11.06% | S + 5.75% | 12/03/27 |
|
| 19,601 |
|
| 19,313 |
|
| 18,915 |
| (5) (6) (7) |
Aria Systems, Inc. | Diversified Financial Services | 13.43% | S + 8.00% | 06/30/26 |
|
| 24,562 |
|
| 24,300 |
|
| 23,580 |
| (5) (6) (7) |
Assembly Intermediate LLC | Diversified Consumer Services | 11.49% | S + 6.00% | 10/19/27 |
|
| 39,908 |
|
| 39,330 |
|
| 39,509 |
| (5) (6) (7) |
Assembly Intermediate LLC | Diversified Consumer Services | 11.49% | S + 6.00% | 10/19/27 |
|
| 9,977 |
|
| 5,475 |
|
| 5,487 |
| (5) (6) (7) (8) |
Assembly Intermediate LLC | Diversified Consumer Services |
| S + 6.00% | 10/19/27 |
|
| 3,991 |
|
| (55 | ) |
| (40 | ) | (5) (7) (8) |
Bigchange Group Limited | Software | 11.19% | SN + 6.00% | 12/23/26 | GBP |
| 10,810 |
|
| 14,303 |
|
| 12,925 |
| (4) (5) (6) (7) |
Bigchange Group Limited | Software | 11.19% | SN + 6.00% | 12/23/26 | GBP |
| 1,678 |
|
| 2,134 |
|
| 2,006 |
| (4) (5) (6) (7) |
Bigchange Group Limited | Software |
| SN + 6.00% | 12/23/26 | GBP |
| 2,160 |
|
| (39 | ) |
| (53 | ) | (4) (5) (6) (7) (8) |
Broadway Technology, LLC | Diversified Financial Services | 11.89% | S + 6.50% | 01/08/26 |
|
| 23,656 |
|
| 23,397 |
|
| 23,656 |
| (5) (6) (7) |
Broadway Technology, LLC | Diversified Financial Services |
| S + 6.50% | 01/08/26 |
|
| 1,010 |
|
| (12 | ) |
| — |
| (5) (7) (8) |
BSI3 Menu Buyer, Inc (dba Kydia) | Diversified Financial Services | 11.43% | S + 6.00% | 01/25/28 |
|
| 48,084 |
|
| 47,445 |
|
| 44,718 |
| (5) (6) (7) |
BSI3 Menu Buyer, Inc (dba Kydia) | Diversified Financial Services |
| S + 6.00% | 01/25/28 |
|
| 1,924 |
|
| (24 | ) |
| (135 | ) | (5) (7) (8) |
Bullhorn, Inc. | Professional Services | 11.24% | S + 5.75% | 09/30/26 |
|
| 13,456 |
|
| 13,323 |
|
| 13,254 |
| (5) (6) (7) |
Bullhorn, Inc. | Professional Services | 11.24% | S + 5.75% | 09/30/26 |
|
| 2,396 |
|
| 2,388 |
|
| 2,360 |
| (5) (6) (7) |
Bullhorn, Inc. | Professional Services | 11.24% | S + 5.75% | 09/30/26 |
|
| 623 |
|
| 617 |
|
| 613 |
| (5) (6) (7) |
Bullhorn, Inc. | Professional Services | 11.24% | S + 5.75% | 09/30/26 |
|
| 279 |
|
| 276 |
|
| 275 |
| (5) (6) (7) |
Bullhorn, Inc. | Professional Services | 11.24% | S + 5.75% | 09/30/26 |
|
| 222 |
|
| 220 |
|
| 219 |
| (5) (6) (7) |
Bullhorn, Inc. | Professional Services |
| S + 5.75% | 09/30/26 |
|
| 693 |
|
| (6 | ) |
| (10 | ) | (5) (6) (7) (8) |
Businessolver.com, Inc. | Health Care Technology | 10.99% | S + 5.50% | 12/01/27 |
|
| 16,570 |
|
| 16,448 |
|
| 16,404 |
| (5) (6) (7) |
Businessolver.com, Inc. | Health Care Technology | 10.99% | S + 5.50% | 12/01/27 |
|
| 4,525 |
|
| 367 |
|
| 339 |
| (5) (6) (7) (8) |
Capitol Imaging Acquisition Corp. | Health Care Providers & Services | 12.13% | S + 6.50% | 10/01/26 |
|
| 39,521 |
|
| 39,082 |
|
| 38,335 |
| (5) (6) (7) |
Capitol Imaging Acquisition Corp. | Health Care Providers & Services |
| S + 6.50% | 10/01/25 |
|
| 9,170 |
|
| (77 | ) |
| (275 | ) | (5) (7) (8) |
CFS Management, LLC (dba Center for Sight Management) | Health Care Providers & Services | 12.65% | S + 7.00% (Incl. 0.75% PIK) | 07/01/24 |
|
| 17,786 |
|
| 17,728 |
|
| 16,808 |
| (5) (6) (7) |
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
8
Goldman Sachs Private Middle Market Credit II LLC
Notes to the Financial StatementsConsolidated Schedule of Investments as of September 30, 2023 (continued)
(in thousands, except unit and per unit amounts)
(Unaudited)
|
Investment (1) | Industry | Interest | Reference Rate | Maturity |
| Par(3) |
| Cost |
| Fair |
| Footnotes | |||
CFS Management, LLC (dba Center for Sight Management) | Health Care Providers & Services | 12.65% | S + 7.00% (Incl. 0.75% PIK) | 07/01/24 | $ |
| 4,472 |
| $ | 4,456 |
| $ | 4,226 |
| (5) (6) (7) |
CFS Management, LLC (dba Center for Sight Management) | Health Care Providers & Services | 12.65% | S + 7.00% (Incl. 0.75% PIK) | 07/01/24 |
|
| 1,733 |
|
| 1,729 |
|
| 1,638 |
| (5) (6) (7) |
CFS Management, LLC (dba Center for Sight Management) | Health Care Providers & Services | 12.65% | S + 7.00% (Incl. 0.75% PIK) | 07/01/24 |
|
| 913 |
|
| 292 |
|
| 245 |
| (5) (6) (7) (8) |
Checkmate Finance Merger Sub, LLC | Entertainment | 11.99% | S + 6.50% | 12/31/27 |
|
| 27,882 |
|
| 27,464 |
|
| 27,116 |
| (5) (6) (7) |
Checkmate Finance Merger Sub, LLC | Entertainment |
| S + 6.50% | 12/31/27 |
|
| 2,831 |
|
| (40 | ) |
| (78 | ) | (5) (6) (7) (8) |
Chronicle Bidco Inc. (dba Lexitas) | Professional Services | 12.07% | S + 6.75% | 05/18/29 |
|
| 42,444 |
|
| 41,553 |
|
| 41,277 |
| (5) (6) (7) |
Chronicle Bidco Inc. (dba Lexitas) | Professional Services | 12.07% | S + 6.75% | 05/18/29 |
|
| 3,676 |
|
| 1,226 |
|
| 1,186 |
| (5) (6) (7) (8) |
CivicPlus LLC | Software | 12.07% | S + 6.50% (Incl. 2.50% PIK) | 08/24/27 |
|
| 5,888 |
|
| 5,798 |
|
| 5,785 |
| (5) (6) (7) |
CivicPlus LLC | Software | 12.07% | S + 6.50% (Incl. 2.50% PIK) | 08/24/27 |
|
| 5,834 |
|
| 5,743 |
|
| 5,732 |
| (5) (6) (7) |
CivicPlus LLC | Software | 12.07% | S + 6.50% (Incl. 2.50% PIK) | 08/24/27 |
|
| 2,743 |
|
| 2,698 |
|
| 2,695 |
| (5) (6) (7) |
CivicPlus LLC | Software | 11.42% | S + 6.00% | 08/24/27 |
|
| 1,112 |
|
| 72 |
|
| 69 |
| (5) (6) (7) (8) |
Clearcourse Partnership Acquireco Finance Limited | IT Services | 12.43% | SN + 7.50% (Incl. 0.75% PIK) | 08/19/28 | GBP |
| 5,692 |
|
| 6,734 |
|
| 6,754 |
| (4) (5) (6) (7) |
Clearcourse Partnership Acquireco Finance Limited | IT Services | 12.43% | SN + 7.50% (Incl. 0.75% PIK) | 08/19/28 | GBP |
| 4,892 |
|
| 2,773 |
|
| 2,791 |
| (4) (5) (6) (7) (8) |
CloudBees, Inc. | Software | 12.43% | S + 7.00% (Incl. 2.50% PIK) | 11/24/26 |
|
| 26,385 |
|
| 25,294 |
|
| 26,121 |
| (5) (6) (7) |
CloudBees, Inc. | Software | 12.43% | S + 7.00% (Incl. 2.50% PIK) | 11/24/26 |
|
| 11,938 |
|
| 10,761 |
|
| 11,154 |
| (5) (6) (7) (8) |
Coding Solutions Acquisition, Inc. | Health Care Providers & Services | 10.82% | S + 5.75% | 05/11/28 |
|
| 13,454 |
|
| 13,230 |
|
| 12,983 |
| (5) (6) (7) |
Coding Solutions Acquisition, Inc. | Health Care Providers & Services | 10.89% | S + 5.75% | 05/11/28 |
|
| 4,075 |
|
| 4,036 |
|
| 3,932 |
| (5) (6) (7) |
Coding Solutions Acquisition, Inc. | Health Care Providers & Services | 10.82% | S + 5.75% | 05/11/28 |
|
| 1,938 |
|
| 360 |
|
| 320 |
| (5) (6) (7) (8) |
CORA Health Holdings Corp | Health Care Providers & Services | 11.32% | S + 5.75% | 06/15/27 |
|
| 20,532 |
|
| 20,339 |
|
| 17,247 |
| (5) (6) (7) |
CORA Health Holdings Corp | Health Care Providers & Services | 11.32% | S + 5.75% | 06/15/27 |
|
| 344 |
|
| 340 |
|
| 289 |
| (5) (6) (7) |
CorePower Yoga LLC | Diversified Consumer Services | 12.65% | S + 7.00% (Incl. 5.00% PIK) | 05/14/25 |
|
| 10,242 |
|
| 10,184 |
|
| 8,603 |
| (5) (6) (7) |
CorePower Yoga LLC | Diversified Consumer Services |
| S + 7.00% (Incl. 5.00% PIK) | 05/14/25 |
|
| 633 |
|
| (3 | ) |
| (101 | ) | (5) (6) (7) (8) |
DECA Dental Holdings LLC | Health Care Providers & Services | 11.24% | S + 5.75% | 08/28/28 |
|
| 19,265 |
|
| 18,977 |
|
| 18,495 |
| (5) (6) (7) |
DECA Dental Holdings LLC | Health Care Providers & Services | 11.24% | S + 5.75% | 08/28/28 |
|
| 2,028 |
|
| 1,998 |
|
| 1,947 |
| (5) (6) (7) |
DECA Dental Holdings LLC | Health Care Providers & Services | 11.24% | S + 5.75% | 08/26/27 |
|
| 1,552 |
|
| 1,014 |
|
| 973 |
| (5) (6) (7) (8) |
Diligent Corporation | Professional Services | 11.77% | S + 6.25% | 08/04/25 |
|
| 20,449 |
|
| 20,242 |
|
| 20,398 |
| (5) (6) (7) |
Diligent Corporation | Professional Services | 11.27% | S + 5.75% | 08/04/25 |
|
| 12,675 |
|
| 12,616 |
|
| 12,517 |
| (5) (6) (7) |
Diligent Corporation | Professional Services | 11.27% | S + 5.75% | 08/04/25 |
|
| 8,609 |
|
| 8,570 |
|
| 8,502 |
| (5) (6) (7) |
Diligent Corporation | Professional Services | 11.77% | S + 6.25% | 08/04/25 |
|
| 1,711 |
|
| 1,694 |
|
| 1,706 |
| (5) (6) (7) |
Diligent Corporation | Professional Services | 11.77% | S + 6.25% | 08/04/25 |
|
| 3,503 |
|
| 1,412 |
|
| 1,427 |
| (5) (6) (7) (8) |
Diligent Corporation | Professional Services | 11.77% | S + 6.25% | 08/04/25 |
|
| 1,079 |
|
| 1,068 |
|
| 1,076 |
| (5) (6) (7) |
Elemica Parent, Inc. | Chemicals | 11.54% | S + 6.00% | 09/18/25 |
|
| 3,484 |
|
| 3,451 |
|
| 3,388 |
| (5) (6) (7) |
Elemica Parent, Inc. | Chemicals | 11.00% | S + 5.50% | 09/18/25 |
|
| 1,361 |
|
| 1,342 |
|
| 1,324 |
| (5) (6) (7) |
Elemica Parent, Inc. | Chemicals | 11.54% | S + 6.00% | 09/18/25 |
|
| 681 |
|
| 674 |
|
| 662 |
| (5) (6) (7) |
Elemica Parent, Inc. | Chemicals | 11.54% | S + 6.00% | 09/18/25 |
|
| 509 |
|
| 502 |
|
| 495 |
| (5) (6) (7) |
Elemica Parent, Inc. | Chemicals | 10.88% | S + 5.50% | 09/18/25 |
|
| 470 |
|
| 466 |
|
| 457 |
| (5) (6) (7) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 11.56% | S + 6.00% | 12/06/25 |
|
| 8,506 |
|
| 8,386 |
|
| 8,315 |
| (5) (6) (7) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 10.92% | S + 5.50% | 12/06/25 |
|
| 6,189 |
|
| 6,151 |
|
| 5,988 |
| (5) (6) (7) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 10.92% | S + 5.50% | 12/06/25 |
|
| 2,933 |
|
| 2,901 |
|
| 2,837 |
| (5) (6) (7) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 10.92% | S + 5.50% | 12/06/25 |
|
| 2,912 |
|
| 2,886 |
|
| 2,817 |
| (5) (6) (7) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
9
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of September 30, 2023 (continued)
(in thousands, except unit and per unit amounts)
(Unaudited)
Investment (1) | Industry | Interest | Reference Rate | Maturity | Par(3) |
| Cost |
| Fair |
| Footnotes | |||
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 10.92% | S + 5.50% | 12/06/25 | $ | 2,668 |
| $ | 2,650 |
| $ | 2,581 |
| (5) (6) (7) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 10.92% | S + 5.50% | 12/06/25 |
| 1,365 |
|
| 1,356 |
|
| 1,320 |
| (5) (6) (7) |
ESO Solutions, Inc | Health Care Technology | 12.40% | S + 7.00% | 05/03/27 |
| 36,294 |
|
| 35,817 |
|
| 35,750 |
| (5) (6) (7) |
ESO Solutions, Inc | Health Care Technology | 12.33% | S + 7.00% | 05/03/27 |
| 3,292 |
|
| 1,935 |
|
| 1,926 |
| (5) (6) (7) (8) |
Everest Clinical Research Corporation | Professional Services | 11.54% | S + 6.00% | 11/06/26 |
| 5,409 |
|
| 5,320 |
|
| 5,342 |
| (4) (5) (6) (7) |
Experity, Inc. | Health Care Technology | 11.24% | S + 5.75% | 02/24/28 |
| 33,748 |
|
| 33,635 |
|
| 32,567 |
| (5) (6) (7) |
Experity, Inc. | Health Care Technology |
| S + 5.75% | 02/24/28 |
| 3,023 |
|
| (10 | ) |
| (106 | ) | (5) (6) (7) (8) |
Fullsteam Operations LLC | Diversified Financial Services | 11.65% | S + 6.00% (Incl. 3.00% PIK) | 10/04/27 |
| 57,325 |
|
| 56,247 |
|
| 55,892 |
| (5) (6) (7) |
Fullsteam Operations LLC | Diversified Financial Services | 17.65% | S + 12.00% (Incl. 4.50% PIK) | 10/04/27 |
| 22,172 |
|
| 21,729 |
|
| 21,617 |
| (5) (6) (7) |
Fullsteam Operations LLC | Diversified Financial Services | 13.15% | S + 7.50% PIK | 10/04/27 |
| 3,067 |
|
| 1,011 |
|
| 993 |
| (5) (6) (7) (8) |
Fullsteam Operations LLC | Diversified Financial Services | 13.16% | S + 7.76% PIK | 10/04/27 |
| 770 |
|
| 332 |
|
| 334 |
| (5) (7) (8) |
Fullsteam Operations LLC | Diversified Financial Services |
| S + 7.50% PIK | 05/01/28 |
| 1,478 |
|
| — |
|
| — |
| (5) (8) |
Fullsteam Operations LLC | Diversified Financial Services |
| S + 6.00% (Incl. 3.00% PIK) | 05/01/30 |
| 26,415 |
|
| — |
|
| — |
| (5) (8) |
Fullsteam Operations LLC | Diversified Financial Services |
| S + 12.00% (Incl. 4.50% PIK) | 05/01/30 |
| 8,313 |
|
| — |
|
| — |
| (5) (8) |
Fullsteam Operations LLC | Diversified Financial Services |
| S + 7.76% PIK | 05/01/30 |
| 3,694 |
|
| — |
|
| — |
| (5) (8) |
Gainsight, Inc. | Software | 12.27% | L + 6.75% PIK | 07/30/27 |
| 44,218 |
|
| 43,765 |
|
| 43,333 |
| (5) (6) (7) |
Gainsight, Inc. | Software | 12.27% | P + 6.75% PIK | 07/30/27 |
| 4,868 |
|
| 2,329 |
|
| 2,286 |
| (5) (6) (7) (8) |
GHA Buyer Inc. (dba Cedar Gate) | Health Care Technology | 13.79% | S + 8.25% (Incl. 3.75% PIK) | 06/24/26 |
| 14,136 |
|
| 13,988 |
|
| 13,571 |
| (5) (6) (7) |
GHA Buyer Inc. (dba Cedar Gate) | Health Care Technology | 13.79% | S + 8.25% (Incl. 3.75% PIK) | 06/24/26 |
| 2,473 |
|
| 2,453 |
|
| 2,374 |
| (5) (6) (7) |
GHA Buyer Inc. (dba Cedar Gate) | Health Care Technology | 13.79% | S + 8.25% (Incl. 3.75% PIK) | 06/24/26 |
| 924 |
|
| 914 |
|
| 887 |
| (5) (6) (7) |
GHA Buyer Inc. (dba Cedar Gate) | Health Care Technology |
| S + 8.25% (incl. 3.75% PIK) | 06/24/26 |
| 1,749 |
|
| (18 | ) |
| (70 | ) | (5) (7) (8) |
GovDelivery Holdings, LLC (dba Granicus, Inc.) | Software | 12.47% | S + 7.00% (Incl. 1.50% PIK) | 01/29/27 |
| 26,439 |
|
| 26,039 |
|
| 26,307 |
| (5) (6) |
GovDelivery Holdings, LLC (dba Granicus, Inc.) | Software | 11.47% | S + 6.00% | 01/29/27 |
| 3,425 |
|
| 3,380 |
|
| 3,408 |
| (5) (6) |
GovDelivery Holdings, LLC (dba Granicus, Inc.) | Software | 11.96% | S + 6.50% | 01/29/27 |
| 2,337 |
|
| 1,055 |
|
| 1,063 |
| (5) (8) |
Governmentjobs.com, Inc. (dba NeoGov) | Software | 10.92% | S + 5.50% | 12/01/28 |
| 37,622 |
|
| 37,548 |
|
| 37,057 |
| (5) (6) (7) |
Governmentjobs.com, Inc. (dba NeoGov) | Software | 10.90% | S + 5.50% | 12/01/28 |
| 13,262 |
|
| 1,564 |
|
| 1,393 |
| (5) (7) (8) |
Governmentjobs.com, Inc. (dba NeoGov) | Software |
| S + 5.50% | 12/02/27 |
| 4,244 |
|
| (7 | ) |
| (64 | ) | (5) (7) (8) |
GS AcquisitionCo, Inc. (dba Insightsoftware) | Diversified Financial Services | 11.29% | S + 5.75% | 05/22/26 |
| 22,679 |
|
| 22,513 |
|
| 22,339 |
| (5) (6) |
GS AcquisitionCo, Inc. (dba Insightsoftware) | Diversified Financial Services |
| S + 5.75% | 05/22/26 |
| 914 |
|
| (7 | ) |
| (14 | ) | (5) (6) (8) |
HealthEdge Software, Inc. | Health Care Technology | 12.43% | S + 7.00% | 04/09/26 |
| 32,000 |
|
| 31,601 |
|
| 31,520 |
| (5) (6) (7) |
HealthEdge Software, Inc. | Health Care Technology | 12.43% | S + 7.00% | 04/09/26 |
| 2,964 |
|
| 2,964 |
|
| 2,920 |
| (5) (6) (7) |
HealthEdge Software, Inc. | Health Care Technology |
| S + 7.00% | 04/09/26 |
| 3,400 |
|
| (40 | ) |
| (51 | ) | (5) (6) (7) (8) |
HealthEdge Software, Inc. | Health Care Technology |
| S + 7.00% | 04/09/26 |
| 8,500 |
|
| (50 | ) |
| (128 | ) | (5) (6) (7) (8) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services | 11.32% | S + 6.00% | 12/15/26 |
| 17,423 |
|
| 17,240 |
|
| 17,205 |
| (5) (6) (7) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services | 11.07% | S + 5.75% | 12/15/26 |
| 14,590 |
|
| 14,496 |
|
| 14,298 |
| (5) (6) (7) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services | 11.32% | S + 6.00% | 12/15/26 |
| 13,369 |
|
| 13,282 |
|
| 13,202 |
| (5) (6) (7) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services | 11.32% | S + 6.00% | 12/15/26 |
| 7,224 |
|
| 7,131 |
|
| 7,133 |
| (5) (6) (7) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services |
| S + 6.00% | 12/15/26 |
| 2,199 |
|
| (24 | ) |
| (27 | ) | (5) (7) (8) |
Honor HN Buyer, Inc | Health Care Providers & Services | 11.29% | S + 5.75% | 10/15/27 |
| 21,709 |
|
| 21,397 |
|
| 21,275 |
| (5) (6) (7) |
Honor HN Buyer, Inc | Health Care Providers & Services | 11.29% | S + 5.75% | 10/15/27 |
| 13,728 |
|
| 13,518 |
|
| 13,453 |
| (5) (7) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
10
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of September 30, 2023 (continued)
(in thousands, except unit and per unit amounts)
(Unaudited)
Investment (1) | Industry | Interest | Reference Rate | Maturity |
| Par(3) |
| Cost |
| Fair |
| Footnotes | |||
Honor HN Buyer, Inc | Health Care Providers & Services | 11.29% | S + 5.75% | 10/15/27 | $ |
| 19,515 |
| $ | 7,879 |
| $ | 7,719 |
| (5) (7) (8) |
Honor HN Buyer, Inc | Health Care Providers & Services | 11.29% | S + 5.75% | 10/15/27 |
|
| 2,542 |
|
| 283 |
|
| 267 |
| (5) (7) (8) |
HowlCO LLC (dba Lone Wolf) | Real Estate Mgmt. & Development | 11.43% | S + 6.00% | 10/23/26 |
|
| 31,926 |
|
| 31,613 |
|
| 30,329 |
| (4) (5) (6) (7) |
HowlCO LLC (dba Lone Wolf) | Real Estate Mgmt. & Development | 11.42% | S + 6.00% | 10/23/26 |
|
| 10,237 |
|
| 10,172 |
|
| 9,725 |
| (4) (5) (6) (7) |
HowlCO LLC (dba Lone Wolf) | Real Estate Mgmt. & Development | 11.43% | S + 6.00% | 10/23/26 |
|
| 9,793 |
|
| 9,741 |
|
| 9,303 |
| (4) (5) (6) (7) |
HS4 AcquisitionCo, Inc. (dba HotSchedules & Fourth) | Hotels, Restaurants & Leisure | 12.17% | S + 6.75% | 07/09/25 |
|
| 26,283 |
|
| 26,097 |
|
| 25,757 |
| (5) (6) (7) |
HS4 AcquisitionCo, Inc. (dba HotSchedules & Fourth) | Hotels, Restaurants & Leisure | 12.17% | S + 6.75% | 07/09/25 |
|
| 5,452 |
|
| 5,396 |
|
| 5,343 |
| (5) (6) (7) |
HS4 AcquisitionCo, Inc. (dba HotSchedules & Fourth) | Hotels, Restaurants & Leisure | 12.17% | S + 6.75% | 07/09/25 |
|
| 2,186 |
|
| 1,407 |
|
| 1,377 |
| (5) (6) (7) (8) |
HumanState Limited (dba PayProp) | Diversified Consumer Services | 11.33% | SN + 6.00% | 11/23/28 | GBP |
| 1,000 |
|
| 1,190 |
|
| 1,202 |
| (4) (5) (6) (7) |
HumanState Limited (dba PayProp) | Diversified Consumer Services |
| SN + 6.00% | 11/23/28 | GBP |
| 100 |
|
| — |
|
| (2 | ) | (4) (5) (6) (7) (8) |
HumanState Limited (dba PayProp) | Diversified Consumer Services |
| SN + 6.00% | 11/23/28 | GBP |
| 270 |
|
| 1 |
|
| (5 | ) | (4) (5) (6) (7) (8) |
iCIMS, Inc. | Professional Services | 12.63% | S + 7.25% (Incl. 3.88% PIK) | 08/18/28 |
|
| 39,362 |
|
| 38,797 |
|
| 38,083 |
| (5) (6) (7) |
iCIMS, Inc. | Professional Services | 12.14% | S + 6.75% | 08/18/28 |
|
| 3,639 |
|
| 556 |
|
| 489 |
| (5) (6) (7) (8) |
iCIMS, Inc. | Professional Services |
| S + 6.75% | 08/18/28 |
|
| 8,999 |
|
| — |
|
| (292 | ) | (5) (6) (7) (8) |
Intelligent Medical Objects, Inc. | Health Care Technology | 11.36% | S + 6.00% | 05/11/29 |
|
| 11,301 |
|
| 11,111 |
|
| 10,962 |
| (5) (6) (7) |
Intelligent Medical Objects, Inc. | Health Care Technology | 11.38% | S + 6.00% | 05/11/29 |
|
| 2,686 |
|
| 694 |
|
| 642 |
| (5) (6) (7) (8) |
Intelligent Medical Objects, Inc. | Health Care Technology | 11.42% | S + 6.00% | 05/11/28 |
|
| 1,396 |
|
| 201 |
|
| 181 |
| (5) (6) (7) (8) |
Internet Truckstop Group, LLC (dba Truckstop) | Transportation Infrastructure | 10.54% | S + 5.00% | 04/02/25 |
|
| 37,599 |
|
| 37,216 |
|
| 37,223 |
| (5) (6) (7) |
Kaseya Inc. | IT Services | 11.62% | S + 6.25% (Incl. 2.50% PIK) | 06/25/29 |
|
| 16,936 |
|
| 16,719 |
|
| 16,682 |
| (5) (6) (7) |
Kaseya Inc. | IT Services | 11.57% | S + 6.25% (Incl. 2.50% PIK) | 06/25/29 |
|
| 1,012 |
|
| 242 |
|
| 239 |
| (5) (6) (7) (8) |
Kaseya Inc. | IT Services | 11.62% | S + 6.25% (Incl. 2.50% PIK) | 06/25/29 |
|
| 1,010 |
|
| 55 |
|
| 47 |
| (5) (6) (7) (8) |
LS Clinical Services Holdings, Inc (dba CATO) | Pharmaceuticals | 12.43% | S + 6.75% | 12/16/27 |
|
| 13,723 |
|
| 13,469 |
|
| 12,591 |
| (5) (6) (7) |
LS Clinical Services Holdings, Inc (dba CATO) | Pharmaceuticals | 12.52% | S + 6.75% | 12/16/26 |
|
| 1,995 |
|
| 1,963 |
|
| 1,831 |
| (5) (6) (7) |
MedeAnalytics, Inc. | Health Care Technology |
| 3.00% PIK | 10/23/28 |
|
| 9,333 |
|
| 6,075 |
|
| 6,075 |
| (5) (6) (7) (9) (10) |
MerchantWise Solutions, LLC (dba HungerRush) | Diversified Financial Services | 11.39% | S + 6.00% | 06/01/28 |
|
| 19,630 |
|
| 19,311 |
|
| 18,649 |
| (5) (6) (7) |
MerchantWise Solutions, LLC (dba HungerRush) | Diversified Financial Services | 11.38% | S + 6.00% | 06/01/28 |
|
| 4,943 |
|
| 4,215 |
|
| 4,047 |
| (5) (6) (7) (8) |
MerchantWise Solutions, LLC (dba HungerRush) | Diversified Financial Services | 11.31% | S + 6.00% | 06/01/28 |
|
| 2,485 |
|
| 334 |
|
| 248 |
| (5) (7) (8) |
Millstone Medical Outsourcing, LLC | Health Care Providers & Services | 11.34% | S + 5.75% | 12/15/27 |
|
| 9,161 |
|
| 9,025 |
|
| 8,978 |
| (5) (6) (7) |
Millstone Medical Outsourcing, LLC | Health Care Providers & Services | 13.50% | P + 5.00% | 12/15/27 |
|
| 1,998 |
|
| 278 |
|
| 266 |
| (5) (6) (7) (8) |
MRI Software LLC | Real Estate Mgmt. & Development | 10.90% | S + 5.50% | 02/10/26 |
|
| 30,475 |
|
| 30,205 |
|
| 29,675 |
| (6) |
MRI Software LLC | Real Estate Mgmt. & Development | 10.99% | S + 5.50% | 02/10/26 |
|
| 16,333 |
|
| 16,259 |
|
| 15,904 |
| (6) |
MRI Software LLC | Real Estate Mgmt. & Development |
| S + 5.50% | 02/10/26 |
|
| 1,143 |
|
| (5 | ) |
| (30 | ) | (6) (8) |
NFM & J, L.P. (dba the Facilities Group) | Professional Services | 11.22% | S + 5.75% | 11/30/27 |
|
| 15,274 |
|
| 15,059 |
|
| 14,816 |
| (5) (6) (7) |
NFM & J, L.P. (dba the Facilities Group) | Professional Services | 11.27% | S + 5.75% | 11/30/27 |
|
| 15,522 |
|
| 13,871 |
|
| 13,627 |
| (5) (6) (7) (8) |
NFM & J, L.P. (dba the Facilities Group) | Professional Services | 13.25% | P + 4.75% | 11/30/27 |
|
| 2,696 |
|
| 52 |
|
| 9 |
| (5) (6) (7) (8) |
One GI LLC | Health Care Providers & Services | 12.17% | S + 6.75% | 12/22/25 |
|
| 20,817 |
|
| 20,608 |
|
| 19,568 |
| (5) (6) (7) |
One GI LLC | Health Care Providers & Services | 12.17% | S + 6.75% | 12/22/25 |
|
| 10,229 |
|
| 10,108 |
|
| 9,615 |
| (5) (6) (7) |
One GI LLC | Health Care Providers & Services | 12.17% | S + 6.75% | 12/22/25 |
|
| 8,655 |
|
| 8,569 |
|
| 8,136 |
| (5) (6) (7) |
One GI LLC | Health Care Providers & Services | 12.17% | S + 6.75% | 12/22/25 |
|
| 5,650 |
|
| 5,537 |
|
| 5,274 |
| (5) (6) (7) (8) |
One GI LLC | Health Care Providers & Services | 12.17% | S + 6.75% | 12/22/25 |
|
| 3,246 |
|
| 3,215 |
|
| 3,052 |
| (5) (6) (7) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
11
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of September 30, 2023 (continued)
(in thousands, except unit and per unit amounts)
(Unaudited)
Investment (1) | Industry | Interest | Reference Rate | Maturity | Par(3) |
| Cost |
| Fair |
| Footnotes | |||
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology | 13.09% | S + 7.50% | 07/18/28 | $ | 22,055 |
| $ | 21,684 |
| $ | 21,724 |
| (5) (6) (7) |
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology | 12.94% | S + 7.50% | 07/18/28 |
| 7,351 |
|
| 3,827 |
|
| 3,717 |
| (5) (6) (7) (8) |
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology | 13.09% | S + 7.50% | 07/18/28 |
| 2,145 |
|
| 2,127 |
|
| 2,113 |
| (5) (6) (7) |
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology |
| S + 7.50% | 07/18/28 |
| 1,705 |
|
| (27 | ) |
| (26 | ) | (5) (7) (8) |
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology |
| S + 7.50% | 07/18/28 |
| 2,530 |
|
| (20 | ) |
| (38 | ) | (5) (7) (8) |
Picture Head Midco LLC | Entertainment | 12.88% | S + 7.25% (incl. 0.50% PIK) | 12/31/24 |
| 19,376 |
|
| 19,171 |
|
| 18,601 |
| (5) (6) (7) (11) |
Pioneer Buyer I, LLC | Software | 12.39% | S + 7.00% PIK | 11/01/28 |
| 26,035 |
|
| 25,703 |
|
| 25,514 |
| (5) (6) (7) |
Pioneer Buyer I, LLC | Software |
| S + 7.00% PIK | 11/01/27 |
| 3,900 |
|
| (54 | ) |
| (78 | ) | (5) (6) (7) (8) |
Pluralsight, Inc | Professional Services | 13.45% | S + 8.00% | 04/06/27 |
| 68,747 |
|
| 67,845 |
|
| 65,997 |
| (5) (6) (7) |
Pluralsight, Inc | Professional Services | 13.44% | S + 8.00% | 04/06/27 |
| 4,600 |
|
| 2,829 |
|
| 2,700 |
| (5) (6) (7) (8) |
Premier Care Dental Management, LLC | Health Care Providers & Services | 10.82% | S + 5.50% | 08/05/28 |
| 16,778 |
|
| 16,529 |
|
| 15,813 |
| (5) (6) (7) |
Premier Care Dental Management, LLC | Health Care Providers & Services | 10.82% | S + 5.50% | 08/05/28 |
| 9,102 |
|
| 8,992 |
|
| 8,579 |
| (5) (6) (7) |
Premier Care Dental Management, LLC | Health Care Providers & Services |
| S + 5.50% | 08/05/27 |
| 2,769 |
|
| (36 | ) |
| (159 | ) | (5) (6) (7) (8) |
Premier Imaging, LLC (dba Lucid Health) | Health Care Providers & Services | 11.65% | S + 6.00% | 01/02/25 |
| 16,404 |
|
| 16,317 |
|
| 15,994 |
| (5) (6) (7) |
Premier Imaging, LLC (dba Lucid Health) | Health Care Providers & Services | 11.65% | S + 6.00% | 01/02/25 |
| 10,749 |
|
| 10,679 |
|
| 10,480 |
| (5) (6) (7) |
Premier Imaging, LLC (dba Lucid Health) | Health Care Providers & Services | 11.65% | S + 6.00% | 01/02/25 |
| 4,551 |
|
| 4,522 |
|
| 4,438 |
| (5) (6) (7) |
Premier Imaging, LLC (dba Lucid Health) | Health Care Providers & Services | 11.65% | S + 6.00% | 01/02/25 |
| 2,914 |
|
| 2,895 |
|
| 2,841 |
| (5) (6) (7) |
Project Eagle Holdings, LLC (dba Exostar) | Aerospace & Defense | 11.43% | S + 6.00% | 07/06/26 |
| 39,692 |
|
| 39,165 |
|
| 39,593 |
| (5) (6) (7) |
Project Eagle Holdings, LLC (dba Exostar) | Aerospace & Defense |
| S + 6.00% | 07/06/26 |
| 3,418 |
|
| (40 | ) |
| (9 | ) | (5) (7) (8) |
Prophix Software Inc. (dba Pound Bidco) | Diversified Financial Services | 11.93% | S + 6.50% | 01/30/26 |
| 17,147 |
|
| 16,970 |
|
| 17,018 |
| (4) (5) (6) (7) |
Prophix Software Inc. (dba Pound Bidco) | Diversified Financial Services | 11.93% | S + 6.50% | 01/30/26 |
| 7,015 |
|
| 6,933 |
|
| 6,963 |
| (4) (5) (6) (7) |
Prophix Software Inc. (dba Pound Bidco) | Diversified Financial Services |
| S + 6.50% | 01/30/26 |
| 3,118 |
|
| (29 | ) |
| (23 | ) | (4) (5) (7) (8) |
PT Intermediate Holdings III, LLC (dba Parts Town) | Trading Companies & Distributors | 11.52% | S + 5.98% | 11/01/28 |
| 20,387 |
|
| 20,229 |
|
| 20,081 |
| (5) (6) |
PT Intermediate Holdings III, LLC (dba Parts Town) | Trading Companies & Distributors | 11.52% | S + 5.98% | 11/01/28 |
| 1,812 |
|
| 1,798 |
|
| 1,785 |
| (5) (6) |
PT Intermediate Holdings III, LLC (dba Parts Town) | Trading Companies & Distributors | 11.52% | S + 5.98% | 11/01/28 |
| 1,749 |
|
| 1,735 |
|
| 1,723 |
| (5) (6) |
PT Intermediate Holdings III, LLC (dba Parts Town) | Trading Companies & Distributors | 11.52% | S + 5.98% | 11/01/28 |
| 1,251 |
|
| 1,242 |
|
| 1,233 |
| (5) (6) |
Purfoods, LLC | Health Care Providers & Services | 11.76% | S + 6.25% | 08/12/26 |
| 23,862 |
|
| 23,576 |
|
| 23,325 |
| (5) (6) (7) |
Purfoods, LLC | Health Care Providers & Services | 11.79% | S + 6.25% | 08/12/26 |
| 16,110 |
|
| 15,917 |
|
| 15,748 |
| (5) (6) (7) |
Riverpoint Medical, LLC | Health Care Equipment & Supplies | 10.54% | S + 5.00% | 06/21/25 |
| 13,410 |
|
| 13,332 |
|
| 13,108 |
| (5) (6) (7) |
Riverpoint Medical, LLC | Health Care Equipment & Supplies | 10.54% | S + 5.00% | 06/21/25 |
| 9,499 |
|
| 9,472 |
|
| 9,285 |
| (5) (6) (7) |
Riverpoint Medical, LLC | Health Care Equipment & Supplies | 10.42% | S + 5.00% | 06/21/25 |
| 1,806 |
|
| 223 |
|
| 185 |
| (5) (6) (7) (8) |
Rodeo Buyer Company (dba Absorb Software) | Professional Services | 11.67% | S + 6.25% | 05/25/27 |
| 19,155 |
|
| 18,902 |
|
| 18,915 |
| (4) (5) (6) (7) |
Rodeo Buyer Company (dba Absorb Software) | Professional Services | 11.67% | S + 6.25% | 05/25/27 |
| 3,065 |
|
| 1,188 |
|
| 1,188 |
| (4) (5) (7) (8) |
Rubrik, Inc. | Software | 12.53% | S + 7.00% | 08/17/28 |
| 4,387 |
|
| 4,344 |
|
| 4,343 |
| (5) (6) |
Rubrik, Inc. | Software | 12.37% | S + 7.00% | 08/17/28 |
| 613 |
|
| 56 |
|
| 56 |
| (5) (6) (8) |
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) | Diversified Consumer Services | 11.43% | S + 6.00% | 07/06/27 |
| 9,776 |
|
| 9,622 |
|
| 9,630 |
| (5) (6) (7) (10) |
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) | Diversified Consumer Services | 11.65% | S + 6.00% | 07/06/27 |
| 6,800 |
|
| 1,296 |
|
| 1,258 |
| (5) (7) (8) (10) |
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) | Diversified Consumer Services |
| S + 6.00% | 07/06/27 |
| 1,700 |
|
| (26 | ) |
| (26 | ) | (5) (7) (8) (10) |
SpendMend, LLC | Health Care Providers & Services | 11.04% | S + 5.50% | 03/01/28 |
| 12,120 |
|
| 11,956 |
|
| 11,817 |
| (5) (6) (7) |
SpendMend, LLC | Health Care Providers & Services | 11.03% | S + 5.50% | 03/01/28 |
| 5,322 |
|
| 2,197 |
|
| 2,115 |
| (5) (6) (7) (8) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
12
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of September 30, 2023 (continued)
(in thousands, except unit and per unit amounts)
(Unaudited)
Investment (1) | Industry | Interest | Reference Rate | Maturity | Par(3) |
| Cost |
| Fair |
| Footnotes | |||
SpendMend, LLC | Health Care Providers & Services | 11.03% | S + 5.50% | 03/01/28 | $ | 1,605 |
| $ | 620 |
| $ | 602 |
| (5) (6) (7) (8) |
StarCompliance Intermediate, LLC | Diversified Financial Services | 12.24% | S + 6.75% | 01/12/27 |
| 14,400 |
|
| 14,226 |
|
| 14,184 |
| (5) (6) (7) |
StarCompliance Intermediate, LLC | Diversified Financial Services | 12.24% | S + 6.75% | 01/12/27 |
| 2,319 |
|
| 2,288 |
|
| 2,285 |
| (5) (6) (7) |
StarCompliance Intermediate, LLC | Diversified Financial Services | 12.20% | S + 6.75% | 01/12/27 |
| 2,300 |
|
| 1,331 |
|
| 1,323 |
| (5) (7) (8) |
Sundance Group Holdings, Inc. (dba NetDocuments) | Software | 11.72% | S + 6.25% | 07/02/27 |
| 37,327 |
|
| 36,933 |
|
| 36,580 |
| (5) (6) (7) |
Sundance Group Holdings, Inc. (dba NetDocuments) | Software | 11.73% | S + 6.25% | 07/02/27 |
| 11,198 |
|
| 11,047 |
|
| 10,974 |
| (5) (6) (7) |
Sundance Group Holdings, Inc. (dba NetDocuments) | Software | 11.77% | S + 6.25% | 07/02/27 |
| 3,239 |
|
| 3,157 |
|
| 3,175 |
| (6) (7) |
Sundance Group Holdings, Inc. (dba NetDocuments) | Software | 11.71% | S + 6.25% | 07/02/27 |
| 4,479 |
|
| 2,345 |
|
| 2,299 |
| (5) (6) (7) (8) |
Sunstar Insurance Group, LLC | Insurance | 11.54% | S + 6.00% | 10/09/26 |
| 11,920 |
|
| 11,776 |
|
| 11,742 |
| (5) (6) (7) |
Sunstar Insurance Group, LLC | Insurance | 11.54% | S + 6.00% | 10/09/26 |
| 7,547 |
|
| 7,459 |
|
| 7,434 |
| (5) (6) (7) |
Sunstar Insurance Group, LLC | Insurance | 11.54% | S + 6.00% | 10/09/26 |
| 18,117 |
|
| 5,430 |
|
| 5,424 |
| (5) (7) (8) |
Sunstar Insurance Group, LLC | Insurance | 13.50% | P + 5.00% | 10/09/26 |
| 3,503 |
|
| 658 |
|
| 648 |
| (5) (7) (8) |
Sunstar Insurance Group, LLC | Insurance | 11.54% | S + 6.00% | 10/09/26 |
| 336 |
|
| 334 |
|
| 331 |
| (5) (6) (7) |
Superman Holdings, LLC (dba Foundation Software) | Construction & Engineering | 11.52% | S + 6.13% | 08/31/27 |
| 39,871 |
|
| 39,238 |
|
| 39,073 |
| (5) (6) (7) |
Superman Holdings, LLC (dba Foundation Software) | Construction & Engineering | 11.52% | S + 6.13% | 08/31/27 |
| 4,027 |
|
| 3,934 |
|
| 3,947 |
| (5) (6) (7) |
Superman Holdings, LLC (dba Foundation Software) | Construction & Engineering |
| S + 6.13% | 08/31/27 |
| 952 |
|
| (11 | ) |
| (19 | ) | (5) (6) (7) (8) |
Superman Holdings, LLC (dba Foundation Software) | Construction & Engineering |
| S + 6.13% | 08/31/26 |
| 5,134 |
|
| (63 | ) |
| (103 | ) | (5) (7) (8) |
Sweep Purchaser LLC | Commercial Services & Supplies | 11.24% | S + 5.75% | 11/30/26 |
| 25,806 |
|
| 25,508 |
|
| 24,516 |
| (5) (6) (7) |
Sweep Purchaser LLC | Commercial Services & Supplies | 11.22% | S + 5.75% | 11/30/26 |
| 8,193 |
|
| 8,096 |
|
| 7,783 |
| (5) (6) (7) |
Sweep Purchaser LLC | Commercial Services & Supplies | 11.22% | S + 5.75% | 11/30/26 |
| 6,569 |
|
| 6,490 |
|
| 6,241 |
| (5) (6) (7) |
Sweep Purchaser LLC | Commercial Services & Supplies | 11.23% | S + 5.75% | 11/30/26 |
| 4,201 |
|
| 4,071 |
|
| 3,907 |
| (5) (7) (8) |
Sweep Purchaser LLC | Commercial Services & Supplies | 11.22% | S + 5.75% | 11/30/26 |
| 3,276 |
|
| 3,231 |
|
| 3,113 |
| (5) (6) (7) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 11.52% | S + 6.00% | 08/15/25 |
| 16,432 |
|
| 16,288 |
|
| 16,145 |
| (5) (6) (7) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 11.01% | S + 6.00% | 08/15/25 |
| 8,884 |
|
| 8,790 |
|
| 8,728 |
| (5) (6) (7) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 11.19% | S + 6.00% | 08/15/25 |
| 7,111 |
|
| 7,030 |
|
| 6,987 |
| (5) (6) (7) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 11.02% | S + 6.00% | 08/15/25 |
| 3,873 |
|
| 3,837 |
|
| 3,806 |
| (5) (6) (7) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 11.50% | S + 6.00% | 08/15/25 |
| 3,938 |
|
| 3,270 |
|
| 3,246 |
| (5) (7) (8) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services |
| S + 6.00% | 08/15/25 |
| 2,361 |
|
| (20 | ) |
| (41 | ) | (5) (6) (7) (8) |
Thrasio, LLC | Internet & Direct Marketing Retail |
| S + 7.00% | 12/18/26 |
| 35,972 |
|
| 35,555 |
|
| 21,224 |
| (5) (6) (7) (9) |
Total Vision LLC | Health Care Providers & Services | 11.61% | S + 6.00% | 07/15/26 |
| 15,405 |
|
| 15,192 |
|
| 15,135 |
| (5) (6) (7) |
Total Vision LLC | Health Care Providers & Services | 11.63% | S + 6.00% | 07/15/26 |
| 9,482 |
|
| 8,768 |
|
| 8,746 |
| (5) (6) (7) (8) |
Total Vision LLC | Health Care Providers & Services | 11.63% | S + 6.00% | 07/15/26 |
| 4,518 |
|
| 4,464 |
|
| 4,439 |
| (5) (6) (7) |
Total Vision LLC | Health Care Providers & Services | 11.58% | S + 6.00% | 07/15/26 |
| 2,258 |
|
| 2,231 |
|
| 2,219 |
| (5) (6) (7) |
Total Vision LLC | Health Care Providers & Services |
| S + 6.00% | 07/15/26 |
| 1,150 |
|
| (13 | ) |
| (20 | ) | (5) (7) (8) |
USN Opco LLC (dba Global Nephrology Solutions) | Health Care Providers & Services | 11.29% | S + 5.75% | 12/21/26 |
| 19,884 |
|
| 19,651 |
|
| 19,287 |
| (5) (6) (7) |
USN Opco LLC (dba Global Nephrology Solutions) | Health Care Providers & Services | 11.29% | S + 5.75% | 12/21/26 |
| 8,591 |
|
| 8,330 |
|
| 8,153 |
| (5) (6) (7) (8) |
USN Opco LLC (dba Global Nephrology Solutions) | Health Care Providers & Services | 11.29% | S + 5.75% | 12/21/26 |
| 6,910 |
|
| 6,853 |
|
| 6,703 |
| (5) (6) (7) |
USN Opco LLC (dba Global Nephrology Solutions) | Health Care Providers & Services | 11.29% | S + 5.75% | 12/21/26 |
| 2,812 |
|
| 1,886 |
|
| 1,834 |
| (5) (7) (8) |
Viant Medical Holdings, Inc. | Health Care Equipment & Supplies | 11.68% | L + 6.25% | 07/02/25 |
| 18,660 |
|
| 18,546 |
|
| 18,473 |
| (5) (6) |
Volt Bidco, Inc. (dba Power Factors) | Independent Power and Renewable Electricity Producers | 12.39% | S + 7.00% | 08/11/27 |
| 31,886 |
|
| 31,425 |
|
| 31,328 |
| (5) (6) (7) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
13
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of September 30, 2023 (continued)
(in thousands, except unit and per unit amounts)
(Unaudited)
Investment (1) | Industry | Interest | Reference Rate | Maturity | Par(3) |
| Cost |
| Fair |
| Footnotes | |||
Volt Bidco, Inc. (dba Power Factors) | Independent Power and Renewable Electricity Producers | 12.40% | S + 7.00% | 08/11/27 | $ | 6,093 |
| $ | 6,093 |
| $ | 5,987 |
| (5) (6) (7) |
Volt Bidco, Inc. (dba Power Factors) | Independent Power and Renewable Electricity Producers |
| S + 7.00% | 08/11/27 |
| 3,343 |
|
| (46 | ) |
| (59 | ) | (5) (7) (8) |
VRC Companies, LLC (dba Vital Records Control) | Commercial Services & Supplies | 11.13% | S + 5.50% | 06/29/27 |
| 29,406 |
|
| 29,111 |
|
| 28,524 |
| (5) (6) (7) |
VRC Companies, LLC (dba Vital Records Control) | Commercial Services & Supplies |
| P + 4.50% | 06/29/27 |
| 858 |
|
| (8 | ) |
| (26 | ) | (5) (6) (7) (8) |
WebPT, Inc. | Health Care Technology | 12.27% | S + 6.75% | 01/18/28 |
| 12,701 |
|
| 12,410 |
|
| 12,383 |
| (5) (6) (7) |
WebPT, Inc. | Health Care Technology | 12.23% | S + 6.75% | 01/18/28 |
| 12,434 |
|
| 12,291 |
|
| 12,123 |
| (5) (6) (7) |
WebPT, Inc. | Health Care Technology | 12.25% | S + 6.75% | 01/18/28 |
| 2,146 |
|
| 1,665 |
|
| 1,635 |
| (5) (6) (7) (8) |
WebPT, Inc. | Health Care Technology | 12.30% | S + 6.75% | 01/18/28 |
| 2,146 |
|
| 346 |
|
| 314 |
| (5) (6) (7) (8) |
Wellness AcquisitionCo, Inc. (dba SPINS) | IT Services | 11.02% | S + 5.50% | 01/20/27 |
| 20,048 |
|
| 19,803 |
|
| 19,747 |
| (5) (6) (7) |
Wellness AcquisitionCo, Inc. (dba SPINS) | IT Services |
| S + 5.50% | 01/20/27 |
| 2,400 |
|
| (27 | ) |
| (36 | ) | (5) (7) (8) |
Wellness AcquisitionCo, Inc. (dba SPINS) | IT Services |
| S + 5.50% | 01/20/27 |
| 3,700 |
|
| (25 | ) |
| (56 | ) | (5) (6) (7) (8) |
Whitewater Holding Company LLC | Diversified Consumer Services | 11.29% | S + 5.75% | 12/21/27 |
| 15,510 |
|
| 15,280 |
|
| 15,044 |
| (5) (6) (7) |
Whitewater Holding Company LLC | Diversified Consumer Services | 11.31% | S + 5.75% | 12/21/27 |
| 5,206 |
|
| 5,125 |
|
| 5,050 |
| (5) (6) (7) |
Whitewater Holding Company LLC | Diversified Consumer Services | 11.29% | S + 5.75% | 12/21/27 |
| 5,173 |
|
| 5,096 |
|
| 5,018 |
| (5) (6) (7) |
Whitewater Holding Company LLC | Diversified Consumer Services | 11.54% | S + 6.00% | 12/21/27 |
| 2,894 |
|
| 2,047 |
|
| 2,024 |
| (5) (6) (7) (8) |
Whitewater Holding Company LLC | Diversified Consumer Services | 11.22% | S + 5.75% | 12/21/27 |
| 2,100 |
|
| 180 |
|
| 147 |
| (5) (6) (7) (8) |
WorkForce Software, LLC | Software | 12.82% | S + 7.25% (Incl. 3.00% PIK) | 07/31/25 |
| 11,919 |
|
| 11,826 |
|
| 11,681 |
| (5) (6) (7) |
WorkForce Software, LLC | Software | 12.82% | S + 7.25% (incl. 3.00% PIK) | 07/31/25 |
| 9,169 |
|
| 9,087 |
|
| 8,986 |
| (5) (6) (7) |
WorkForce Software, LLC | Software | 12.82% | S + 7.25% (Incl. 3.00% PIK) | 07/31/25 |
| 2,873 |
|
| 2,844 |
|
| 2,816 |
| (5) (6) (7) |
WorkForce Software, LLC | Software | 12.82% | S + 7.25% (Incl. 3.00% PIK) | 07/31/25 |
| 2,108 |
|
| 2,092 |
|
| 2,066 |
| (5) (6) (7) |
WorkForce Software, LLC | Software |
| S + 7.25% (Incl. 3.00% PIK) | 07/31/25 |
| 980 |
|
| (7 | ) |
| (20 | ) | (5) (6) (7) (8) |
WSO2, Inc. | IT Services | 12.46% | S + 7.50% (Incl. 3.00% PIK) | 11/04/26 |
| 29,821 |
|
| 29,454 |
|
| 29,225 |
| (5) (6) (7) |
Zarya Intermediate, LLC (dba iOFFICE) | Real Estate Mgmt. & Development | 11.92% | S + 6.50% | 07/01/27 |
| 80,545 |
|
| 80,545 |
|
| 79,740 |
| (5) (6) (7) |
Zarya Intermediate, LLC (dba iOFFICE) | Real Estate Mgmt. & Development | 11.91% | S + 6.50% | 07/01/27 |
| 8,383 |
|
| 3,593 |
|
| 3,509 |
| (5) (7) (8) |
Zodiac Intermediate, LLC (dba Zipari) | Health Care Technology |
| S + 8.00% | 12/21/26 |
| 46,540 |
|
| 45,659 |
|
| 28,296 |
| (5) (6) (7) (9) |
Zodiac Intermediate, LLC (dba Zipari) | Health Care Technology |
| S + 8.00% | 12/22/25 |
| 7,000 |
|
| 6,843 |
|
| 4,256 |
| (5) (7) (9) |
Total 1st Lien/Senior Secured Debt |
|
|
|
|
|
|
| 2,580,211 |
|
| 2,504,305 |
|
| |
1st Lien/Last-Out Unitranche (12) - 1.60% |
|
|
|
|
|
|
|
|
|
|
| |||
EDB Parent, LLC (dba Enterprise DB) | Software | 12.14% | S + 6.75% | 07/07/28 | $ | 17,879 |
| $ | 17,480 |
| $ | 17,432 |
| (5) (6) (7) |
EDB Parent, LLC (dba Enterprise DB) | Software | 12.14% | S + 6.75% | 07/07/28 |
| 6,958 |
|
| 2,606 |
|
| 2,432 |
| (5) (6) (7) (8) |
Total 1st Lien/Last-Out Unitranche |
|
|
|
|
|
|
| 20,086 |
|
| 19,864 |
|
| |
Unsecured Debt 0.53% |
|
|
|
|
|
|
|
|
|
|
| |||
CivicPlus LLC | Software | 17.09% | S + 11.75% PIK | 06/09/34 | $ | 6,734 |
| $ | 6,571 |
| $ | 6,566 |
| (5) (6) (7) |
Total Unsecured Debt |
|
|
|
|
|
|
| 6,571 |
|
| 6,566 |
|
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
14
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of September 30, 2023 (continued)
(in thousands, except unit and per unit amounts)
(Unaudited)
Investment (1) | Industry | Initial |
| Shares(3) |
| Cost |
| Fair |
| Footnotes | |||
Preferred Stock - 3.82% |
|
|
|
|
|
|
|
|
|
| |||
Broadway Parent, LLC | Diversified Financial Services | 01/25/21 |
|
| 3,700,000 |
| $ | 3,718 |
| $ | 7,400 |
| (5) (7) (14) |
CloudBees, Inc. | Software | 11/24/21 |
|
| 1,038,917 |
|
| 11,623 |
|
| 13,973 |
| (5) (7) (14) |
Diligent Corporation | Professional Services | 04/06/21 |
|
| 4,400 |
|
| 4,290 |
|
| 5,566 |
| (5) (7) (14) |
Foundation Software | Construction & Engineering | 08/31/20 |
|
| 912 |
|
| 912 |
|
| 1,200 |
| (5) (7) (14) |
Governmentjobs.com, Inc. (dba NeoGov) | Software | 12/02/21 |
|
| 9,549 |
|
| 9,310 |
|
| 11,253 |
| (5) (7) (14) |
MedeAnalytics, Inc. | Health Care Technology | 10/09/20 |
|
| — |
|
| — |
|
| — |
| (5) (7) (10) (14) (15) |
WSO2, Inc. | IT Services | 11/04/21 |
|
| 509,767 |
|
| 8,052 |
|
| 7,970 |
| (5) (7) (14) |
Total Preferred Stock |
|
|
|
|
|
| 37,905 |
|
| 47,362 |
|
| |
Common Stock - 1.28% |
|
|
|
|
|
|
|
|
|
| |||
Abacus Data Holdings, Inc. (dba Clutch Intermediate Holdings) | Software | 03/10/21 |
|
| 26,555 |
| $ | 2,655 |
| $ | 2,390 |
| (5) (7) (14) |
Exostar LLC - Class B | Aerospace & Defense | 07/06/20 |
|
| 1,424,165 |
|
| — |
|
| 3,617 |
| (5) (7) (14) |
Foundation Software - Class B | Construction & Engineering | 08/31/20 |
|
| 490,234 |
|
| — |
|
| 652 |
| (5) (7) (14) |
MedeAnalytics, Inc. | Health Care Technology | 04/21/23 |
|
| 373 |
|
| — |
|
| — |
| (7) (10) (14) |
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) | Diversified Consumer Services | 07/06/22 |
|
| 1,000 |
|
| 1,000 |
|
| 1,634 |
| (5) (7) (10) (14) |
Total Vision LLC | Health Care Providers & Services | 07/15/21 |
|
| 115,714 |
|
| 2,150 |
|
| 2,164 |
| (5) (7) (14) |
Volt Bidco, Inc. (dba Power Factors) | Independent Power and Renewable Electricity Producers | 08/11/21 |
|
| 3,044 |
|
| 3,091 |
|
| 3,367 |
| (5) (7) (14) |
Whitewater Holding Company LLC | Diversified Consumer Services | 12/21/21 |
|
| 21,000 |
|
| 2,100 |
|
| 2,004 |
| (5) (7) (14) |
Total Common Stock |
|
|
|
|
|
| 10,996 |
|
| 15,828 |
|
| |
Warrants - 0.02% |
|
|
|
|
|
|
|
|
|
| |||
CloudBees, Inc. | Software | 11/24/21 |
|
| 300,946 |
| $ | 1,666 |
| $ | 295 |
| (5) (7) (14) |
Total Warrants |
|
|
|
|
|
| 1,666 |
|
| 295 |
|
| |
Total Investments - 209.34% |
|
|
|
|
| $ | 2,657,435 |
| $ | 2,594,220 |
|
| |
Investments in Affiliated Money Market Fund - 12.42% |
|
|
|
|
|
|
|
|
|
| |||
Goldman Sachs Financial Square Government Fund - Institutional Shares |
|
|
|
| 153,923,175 |
| $ | 153,923 |
| $ | 153,923 |
| (6) (16) (17) |
Total Investments in Affiliated Money Market Fund |
|
|
|
|
|
| 153,923 |
|
| 153,923 |
|
| |
Total Investments and Investments in Affiliated Money Market Fund - 221.76% |
|
|
|
|
| $ | 2,811,358 |
| $ | 2,748,143 |
|
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
15
PIK – Payment-In-Kind
The accompanying notes are an integral part of these unaudited consolidated financial statements.
16
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of December 31, 2022
(in thousands, except unit and per unit amounts)
Investment # | Industry | Interest | Reference Rate and | Maturity |
| Par(++) |
| Cost |
| Fair |
| Footnotes | |||
1st Lien/Senior Secured Debt - 206.50% |
|
|
|
|
|
|
|
|
|
|
|
| |||
1272775 B.C. LTD. (dba Everest Clinical Research) | Professional Services | 10.73% | S + 6.00% | 11/06/26 | $ |
| 8,546 |
| $ | 8,460 |
| $ | 8,439 |
| (1) (2) (3) (4) |
1272775 B.C. LTD. (dba Everest Clinical Research) | Professional Services | 11.46% | P + 6.00% | 11/06/26 |
|
| 846 |
|
| 688 |
|
| 685 |
| (1) (2) (3) (4) (5) |
1272775 B.C. LTD. (dba Everest Clinical Research) | Professional Services | 11.45% | CDN P + 4.75% | 11/06/26 | CAD |
| 418 |
|
| 312 |
|
| 305 |
| (1) (2) (3) (4) |
3SI Security Systems, Inc. | Commercial Services & Supplies | 11.24% | L + 6.50% | 12/16/24 |
|
| 2,059 |
|
| 2,038 |
|
| 1,992 |
| (3) (4) |
Abacus Data Holdings, Inc. (dba Clutch Intermediate Holdings) | Software | 9.99% | L + 6.25% | 03/10/27 |
|
| 14,667 |
|
| 14,405 |
|
| 14,373 |
| (2) (3) (4) |
Abacus Data Holdings, Inc. (dba Clutch Intermediate Holdings) | Software | 9.99% | L + 6.25% | 03/10/27 |
|
| 2,751 |
|
| 1,513 |
|
| 1,482 |
| (2) (3) (4) (5) |
Abacus Data Holdings, Inc. (dba Clutch Intermediate Holdings) | Software | 10.64% | L + 6.25% | 03/10/27 |
|
| 1,100 |
|
| 532 |
|
| 528 |
| (2) (3) (4) (5) |
Acquia, Inc. | Software | 10.74% | L + 7.00% | 10/31/25 |
|
| 24,940 |
|
| 24,615 |
|
| 24,379 |
| (2) (3) (4) |
Acquia, Inc. | Software | 12.16% | L + 7.00% | 10/31/25 |
|
| 1,933 |
| �� | 1,115 |
|
| 1,093 |
| (2) (3) (4) (5) |
Admiral Buyer, Inc. (dba Fidelity Payment Services) | Diversified Financial Services | 10.08% | S + 5.50% | 05/08/28 |
|
| 24,130 |
|
| 23,689 |
|
| 23,647 |
| (2) (3) (4) |
Admiral Buyer, Inc. (dba Fidelity Payment Services) | Diversified Financial Services |
| S + 6.00% | 05/08/28 |
|
| 2,330 |
|
| (42 | ) |
| (47 | ) | (2) (3) (4) (5) |
Admiral Buyer, Inc. (dba Fidelity Payment Services) | Diversified Financial Services |
| S + 6.00% | 05/08/28 |
|
| 6,510 |
|
| (58 | ) |
| (130 | ) | (2) (3) (4) (5) |
Apptio, Inc. | IT Services | 9.94% | L + 6.00% | 01/10/25 |
|
| 26,813 |
|
| 26,357 |
|
| 26,545 |
| (3) (4) |
Apptio, Inc. | IT Services | 9.93% | L + 6.00% | 01/10/25 |
|
| 769 |
|
| 447 |
|
| 454 |
| (3) (4) (5) |
AQ Helios Buyer, Inc. (dba SurePoint) | Software | 10.03% | S + 7.00% | 07/01/26 |
|
| 35,280 |
|
| 34,740 |
|
| 34,222 |
| (2) (3) (4) |
AQ Helios Buyer, Inc. (dba SurePoint) | Software | 12.01% | S + 8.00% | 07/01/26 |
|
| 2,127 |
|
| 2,127 |
|
| 2,121 |
| (2) (3) (4) |
AQ Helios Buyer, Inc. (dba SurePoint) | Software | 12.35% | S + 8.00% | 07/01/26 |
|
| 5,900 |
|
| 2,040 |
|
| 2,025 |
| (2) (3) (4) (5) |
AQ Helios Buyer, Inc. (dba SurePoint) | Software |
| S + 7.00% | 07/01/26 |
|
| 4,160 |
|
| (59 | ) |
| (125 | ) | (2) (3) (4) (5) |
Argos Health Holdings, Inc | Health Care Providers & Services | 9.72% | L + 5.50% | 12/03/27 |
|
| 19,750 |
|
| 19,416 |
|
| 19,158 |
| (2) (3) (4) |
Aria Systems, Inc. | Diversified Financial Services | 11.44% | S + 7.00% | 06/30/26 |
|
| 24,702 |
|
| 24,376 |
|
| 23,899 |
| (2) (3) (4) |
Assembly Intermediate LLC | Diversified Consumer Services | 11.23% | L + 6.50% | 10/19/27 |
|
| 39,908 |
|
| 39,242 |
|
| 39,310 |
| (2) (3) (4) |
Assembly Intermediate LLC | Diversified Consumer Services | 10.77% | L + 6.50% | 10/19/27 |
|
| 9,977 |
|
| 5,456 |
|
| 5,437 |
| (2) (3) (4) (5) |
Assembly Intermediate LLC | Diversified Consumer Services | 11.05% | L + 6.50% | 10/19/27 |
|
| 3,991 |
|
| 1,532 |
|
| 1,536 |
| (2) (3) (4) (5) |
Bigchange Group Limited | Software | 9.43% | SN + 6.00% | 12/23/26 | GBP |
| 10,810 |
|
| 14,265 |
|
| 12,775 |
| (1) (2) (3) (4) |
Bigchange Group Limited | Software | 9.43% | SN + 6.00% | 12/23/26 | GBP |
| 790 |
|
| 450 |
|
| 424 |
| (1) (2) (3) (4) (5) |
Bigchange Group Limited | Software |
| SN + 6.00% | 12/23/26 | GBP |
| 2,160 |
|
| (49 | ) |
| (59 | ) | (1) (2) (3) (4) (5) |
Broadway Technology, LLC | Diversified Financial Services | 11.34% | S + 6.50% | 01/08/26 |
|
| 23,777 |
|
| 23,440 |
|
| 23,539 |
| (2) (3) (4) |
Broadway Technology, LLC | Diversified Financial Services |
| S + 6.50% | 01/08/26 |
|
| 1,010 |
|
| (16 | ) |
| (10 | ) | (2) (3) (4) (5) |
BSI3 Menu Buyer, Inc (dba Kydia) | Diversified Financial Services | 10.44% | S + 6.00% | 01/25/28 |
|
| 48,084 |
|
| 47,351 |
|
| 46,161 |
| (2) (3) (4) |
BSI3 Menu Buyer, Inc (dba Kydia) | Diversified Financial Services |
| S + 6.00% | 01/25/28 |
|
| 1,924 |
|
| (29 | ) |
| (77 | ) | (2) (3) (4) (5) |
Bullhorn, Inc. | Professional Services | 10.48% | L + 5.75% | 09/30/26 |
|
| 13,561 |
|
| 13,398 |
|
| 13,358 |
| (2) (3) (4) |
Bullhorn, Inc. | Professional Services | 10.48% | L + 5.75% | 09/30/26 |
|
| 2,415 |
|
| 2,405 |
|
| 2,378 |
| (2) (3) (4) |
Bullhorn, Inc. | Professional Services | 10.48% | L + 5.75% | 09/30/26 |
|
| 628 |
|
| 620 |
|
| 618 |
| (2) (3) (4) |
Bullhorn, Inc. | Professional Services | 10.48% | L + 5.75% | 09/30/26 |
|
| 693 |
|
| 311 |
|
| 309 |
| (2) (3) (4) (5) |
Bullhorn, Inc. | Professional Services | 10.48% | L + 5.75% | 09/30/26 |
|
| 281 |
|
| 278 |
|
| 277 |
| (2) (3) (4) |
Bullhorn, Inc. | Professional Services | 10.48% | L + 5.75% | 09/30/26 |
|
| 224 |
|
| 221 |
|
| 221 |
| (2) (3) (4) |
Businessolver.com, Inc. | Health Care Technology | 9.67% | L + 5.50% | 12/01/27 |
|
| 16,696 |
|
| 16,554 |
|
| 16,529 |
| (2) (3) (4) |
Businessolver.com, Inc. | Health Care Technology | 9.88% | L + 5.50% | 12/01/27 |
|
| 4,528 |
|
| 367 |
|
| 342 |
| (2) (3) (4) (5) |
Capitol Imaging Acquisition Corp. | Health Care Providers & Services | 11.38% | S + 6.50% | 10/01/26 |
|
| 39,824 |
|
| 39,287 |
|
| 38,630 |
| (2) (3) (4) |
Capitol Imaging Acquisition Corp. | Health Care Providers & Services | 13.00% | P + 5.50% | 10/01/25 |
|
| 9,170 |
|
| 7,140 |
|
| 6,969 |
| (2) (4) (5) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
17
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of December 31, 2022 (continued)
(in thousands, except unit and per unit amounts)
Investment # | Industry | Interest | Reference Rate | Maturity |
| Par(++) |
| Cost |
| Fair |
| Footnotes | |||
CFS Management, LLC (dba Center for Sight Management) | Health Care Providers & Services | 11.84% | S + 7.00% (incl. 0.75% PIK) | 07/01/24 | $ |
| 18,099 |
| $ | 17,983 |
| $ | 16,741 |
| (2) (3) (4) |
CFS Management, LLC (dba Center for Sight Management) | Health Care Providers & Services | 11.84% | S + 7.00% (incl. 0.75% PIK) | 07/01/24 |
|
| 4,540 |
|
| 4,509 |
|
| 4,200 |
| (2) (3) (4) |
CFS Management, LLC (dba Center for Sight Management) | Health Care Providers & Services | 11.84% | S + 7.00% (incl. 0.75% PIK) | 07/01/24 |
|
| 1,764 |
|
| 1,755 |
|
| 1,631 |
| (2) (3) (4) |
CFS Management, LLC (dba Center for Sight Management) | Health Care Providers & Services | 11.84% | S + 7.00% | 07/01/24 |
|
| 919 |
|
| 293 |
|
| 232 |
| (2) (3) (4) (5) |
Checkmate Finance Merger Sub, LLC | Entertainment | 11.23% | L + 6.50% | 12/31/27 |
|
| 28,095 |
|
| 27,611 |
|
| 27,252 |
| (2) (3) (4) |
Checkmate Finance Merger Sub, LLC | Entertainment |
| L + 6.50% | 12/31/27 |
|
| 2,831 |
|
| (47 | ) |
| (85 | ) | (2) (3) (4) (5) |
Chronicle Bidco Inc. (dba Lexitas) | Professional Services | 10.83% | S + 6.25% | 05/18/29 |
|
| 42,768 |
|
| 41,784 |
|
| 41,485 |
| (2) (3) (4) |
Chronicle Bidco Inc. (dba Lexitas) | Professional Services |
| S + 6.25% | 05/18/29 |
|
| 3,676 |
|
| (69 | ) |
| (110 | ) | (2) (3) (4) (5) |
CivicPlus LLC | Software | 11.48% | L + 6.75% (incl. 2.50% PIK) | 08/24/27 |
|
| 5,777 |
|
| 5,673 |
|
| 5,633 |
| (2) (3) (4) |
CivicPlus LLC | Software | 11.48% | L + 6.75% (incl. 2.50% PIK) | 08/24/27 |
|
| 5,724 |
|
| 5,619 |
|
| 5,581 |
| (2) (3) (4) |
CivicPlus LLC | Software | 11.48% | L + 6.75% (incl. 2.50% PIK) | 08/24/27 |
|
| 2,691 |
|
| 2,640 |
|
| 2,624 |
| (2) (3) (4) |
CivicPlus LLC | Software |
| L + 6.75% (incl. 2.50% PIK) | 08/24/27 |
|
| 1,112 |
|
| (20 | ) |
| (28 | ) | (2) (3) (4) (5) |
Clearcourse Partnership Acquireco Finance Limited | IT Services | 10.69% | SN + 7.25% (Incl. 0.75% PIK) | 07/25/28 | GBP |
| 5,379 |
|
| 6,324 |
|
| 6,340 |
| (1) (2) (3) (4) |
Clearcourse Partnership Acquireco Finance Limited | IT Services | 9.55% | SN + 7.25% PIK | 07/25/28 | GBP |
| 4,771 |
|
| 1,864 |
|
| 1,894 |
| (1) (2) (3) (4) (5) |
CloudBees, Inc. | Software | 11.39% | L + 7.00% (incl. 2.50% PIK) | 11/24/26 |
|
| 25,890 |
|
| 24,568 |
|
| 25,437 |
| (2) (3) (4) |
CloudBees, Inc. | Software | 11.39% | L + 7.00% (incl. 2.50% PIK) | 11/24/26 |
|
| 11,727 |
|
| 10,443 |
|
| 10,857 |
| (2) (3) (4) (5) |
Coding Solutions Acquisition, Inc. | Health Care Providers & Services | 9.82% | S + 5.50% | 05/11/28 |
|
| 13,556 |
|
| 13,305 |
|
| 13,217 |
| (2) (3) (4) |
Coding Solutions Acquisition, Inc. | Health Care Providers & Services | 9.82% | S + 5.50% | 05/11/28 |
|
| 1,938 |
|
| 354 |
|
| 339 |
| (2) (3) (4) (5) |
Coding Solutions Acquisition, Inc. | Health Care Providers & Services |
| S + 5.50% | 05/11/28 |
|
| 4,077 |
|
| (37 | ) |
| (102 | ) | (2) (3) (4) (5) |
CORA Health Holdings Corp | Health Care Providers & Services | 10.48% | L + 5.75% | 06/15/27 |
|
| 20,404 |
|
| 20,172 |
|
| 18,160 |
| (2) (3) (4) |
CORA Health Holdings Corp | Health Care Providers & Services | 10.31% | L + 5.75% | 06/15/27 |
|
| 8,090 |
|
| 298 |
|
| (544 | ) | (2) (3) (4) (5) |
CorePower Yoga LLC | Diversified Consumer Services | 11.73% | L + 7.00% (incl. 5.00% PIK) | 05/14/25 |
|
| 9,860 |
|
| 9,790 |
|
| 8,061 |
| (2) (3) (4) |
CorePower Yoga LLC | Diversified Consumer Services | 11.72% | L + 7.00% (incl. 5.00% PIK) | 05/14/25 |
|
| 633 |
|
| 207 |
|
| 96 |
| (2) (3) (4) (5) |
DECA Dental Holdings LLC | Health Care Providers & Services | 10.48% | L + 5.75% | 08/28/28 |
|
| 19,413 |
|
| 19,086 |
|
| 18,442 |
| (2) (3) (4) |
DECA Dental Holdings LLC | Health Care Providers & Services | 10.48% | L + 5.75% | 08/28/28 |
|
| 6,699 |
|
| 1,971 |
|
| 1,708 |
| (2) (3) (4) (5) |
DECA Dental Holdings LLC | Health Care Providers & Services | 10.48% | L + 5.75% | 08/26/27 |
|
| 1,552 |
|
| 1,321 |
|
| 1,267 |
| (2) (3) (4) (5) |
Diligent Corporation | Professional Services | 10.63% | L + 6.25% | 08/04/25 |
|
| 20,608 |
|
| 20,320 |
|
| 20,556 |
| (2) (3) (4) |
Diligent Corporation | Professional Services | 10.13% | L + 5.75% | 08/04/25 |
|
| 12,773 |
|
| 12,691 |
|
| 12,613 |
| (2) (3) (4) |
Diligent Corporation | Professional Services | 10.13% | L + 5.75% | 08/04/25 |
|
| 8,675 |
|
| 8,621 |
|
| 8,567 |
| (2) (3) (4) |
Diligent Corporation | Professional Services | 10.63% | L + 6.25% | 08/04/25 |
|
| 1,724 |
|
| 1,700 |
|
| 1,719 |
| (2) (3) (4) |
Diligent Corporation | Professional Services | 10.63% | L + 6.25% | 08/04/25 |
|
| 1,087 |
|
| 1,072 |
|
| 1,084 |
| (2) (3) (4) |
Diligent Corporation | Professional Services | 10.63% | L + 6.25% | 08/04/25 |
|
| 3,503 |
|
| 1,017 |
|
| 1,042 |
| (2) (3) (4) (5) |
Elemica Parent, Inc. | Chemicals | 10.74% | L + 6.00% | 09/18/25 |
|
| 3,511 |
|
| 3,467 |
|
| 3,371 |
| (2) (3) (4) |
Elemica Parent, Inc. | Chemicals | 10.58% | S + 6.00% | 09/18/25 |
|
| 1,372 |
|
| 1,346 |
|
| 1,317 |
| (2) (3) (4) |
Elemica Parent, Inc. | Chemicals | 10.68% | S + 6.00% | 09/18/25 |
|
| 686 |
|
| 677 |
|
| 659 |
| (2) (3) (4) |
Elemica Parent, Inc. | Chemicals | 10.68% | S + 6.00% | 09/18/25 |
|
| 513 |
|
| 503 |
|
| 492 |
| (2) (3) (4) |
Elemica Parent, Inc. | Chemicals | 10.51% | S + 6.00% | 09/18/25 |
|
| 470 |
|
| 464 |
|
| 451 |
| (2) (3) (4) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 9.75% | S + 5.75% | 12/06/25 |
|
| 8,571 |
|
| 8,413 |
|
| 8,399 |
| (2) (3) (4) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 9.67% | S + 5.25% | 12/06/25 |
|
| 6,237 |
|
| 6,187 |
|
| 6,035 |
| (2) (3) (4) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 9.67% | S + 5.50% | 12/06/25 |
|
| 2,955 |
|
| 2,914 |
|
| 2,859 |
| (2) (3) (4) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
18
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of December 31, 2022 (continued)
(in thousands, except unit and per unit amounts)
Investment # | Industry | Interest | Reference Rate | Maturity | Par(++) |
| Cost |
| Fair |
| Footnotes | |||
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 9.67% | S + 5.25% | 12/06/25 | $ | 2,934 |
| $ | 2,899 |
| $ | 2,839 |
| (2) (3) (4) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 9.67% | S + 5.25% | 12/06/25 |
| 2,688 |
|
| 2,665 |
|
| 2,601 |
| (2) (3) (4) |
Eptam Plastics, Ltd. | Health Care Equipment & Supplies | 9.67% | S + 5.25% | 12/06/25 |
| 1,365 |
|
| 126 |
|
| 92 |
| (2) (3) (4) (5) |
ESO Solutions, Inc | Health Care Technology | 11.59% | S + 7.00% | 05/03/27 |
| 36,294 |
|
| 35,733 |
|
| 35,750 |
| (2) (3) (4) |
ESO Solutions, Inc | Health Care Technology |
| S + 7.00% | 05/03/27 |
| 3,292 |
|
| (48 | ) |
| (49 | ) | (2) (3) (4) (5) |
Everest Clinical Research Corporation | Professional Services | 10.65% | S + 6.00% | 11/06/26 |
| 5,450 |
|
| 5,342 |
|
| 5,382 |
| (1) (2) (3) (4) |
Experity, Inc. | Health Care Technology | 10.48% | L + 5.75% | 02/24/28 |
| 34,005 |
|
| 33,873 |
|
| 33,495 |
| (2) (3) (4) |
Experity, Inc. | Health Care Technology |
| L + 5.75% | 02/24/28 |
| 3,023 |
|
| (12 | ) |
| (45 | ) | (2) (3) (4) (5) |
Fullsteam Operations LLC | Diversified Financial Services | 12.23% | L + 7.50% (Incl. 5.25% PIK) | 10/04/27 |
| 53,981 |
|
| 52,748 |
|
| 52,632 |
| (2) (3) (4) |
Fullsteam Operations LLC | Diversified Financial Services | 12.23% | L + 7.50% (Incl. 5.25% PIK) | 10/04/27 |
| 20,906 |
|
| 20,398 |
|
| 20,383 |
| (2) (3) (4) |
Fullsteam Operations LLC | Diversified Financial Services | 12.23% | L + 7.50% (Incl. 5.25% PIK) | 10/04/27 |
| 3,067 |
|
| 1,001 |
|
| 993 |
| (2) (3) (4) (5) |
Fullsteam Operations LLC | Diversified Financial Services |
| L + 7.50% (Incl. 5.25% PIK) | 10/04/27 |
| 764 |
|
| (16 | ) |
| (19 | ) | (2) (4) (5) |
Gainsight, Inc. | Software | 11.16% | L + 6.75% PIK | 07/30/27 |
| 40,594 |
|
| 40,066 |
|
| 39,072 |
| (2) (3) (4) |
Gainsight, Inc. | Software |
| L + 6.75% | 07/30/27 |
| 4,830 |
|
| (65 | ) |
| (181 | ) | (2) (3) (4) (5) |
GHA Buyer Inc. (dba Cedar Gate) | Health Care Technology | 12.98% | S + 8.25% (Incl. 3.75% PIK) | 06/24/26 |
| 13,845 |
|
| 13,682 |
|
| 13,014 |
| (2) (3) (4) |
GHA Buyer Inc. (dba Cedar Gate) | Health Care Technology | 12.98% | S + 8.25% (Incl. 3.75% PIK) | 06/24/26 |
| 2,422 |
|
| 2,394 |
|
| 2,277 |
| (2) (3) (4) |
GHA Buyer Inc. (dba Cedar Gate) | Health Care Technology | 12.98% | S + 8.25% (Incl. 3.75% PIK) | 06/24/26 |
| 905 |
|
| 891 |
|
| 850 |
| (2) (3) (4) |
GHA Buyer Inc. (dba Cedar Gate) | Health Care Technology |
| S + 8.25% (Incl. 3.75% PIK) | 06/24/26 |
| 1,749 |
|
| (20 | ) |
| (105 | ) | (2) (4) (5) |
GovDelivery Holdings, LLC (dba Granicus, Inc.) | Software | 9.64% | L + 5.50% | 01/29/27 |
| 26,375 |
|
| 25,892 |
|
| 25,715 |
| (2) (3) |
GovDelivery Holdings, LLC (dba Granicus, Inc.) | Software | 10.14% | L + 6.00% | 01/29/27 |
| 3,444 |
|
| 3,390 |
|
| 3,358 |
| (2) (3) |
GovDelivery Holdings, LLC (dba Granicus, Inc.) | Software | 10.69% | L + 6.50% | 01/29/27 |
| 2,337 |
|
| 760 |
|
| 726 |
| (2) (5) |
Governmentjobs.com, Inc. (dba NeoGov) | Software | 9.88% | L + 5.50% | 12/01/28 |
| 37,908 |
|
| 37,825 |
|
| 37,245 |
| (2) (3) (4) |
Governmentjobs.com, Inc. (dba NeoGov) | Software |
| L + 5.50% | 12/02/27 |
| 4,244 |
|
| (9 | ) |
| (74 | ) | (2) (3) (4) (5) |
Governmentjobs.com, Inc. (dba NeoGov) | Software |
| L + 5.50% | 12/01/28 |
| 13,262 |
|
| (14 | ) |
| (232 | ) | (2) (3) (4) (5) |
GS AcquisitionCo, Inc. (dba Insightsoftware) | Diversified Financial Services | 9.92% | L + 5.75% | 05/22/26 |
| 22,855 |
|
| 22,648 |
|
| 22,055 |
| (2) (3) |
GS AcquisitionCo, Inc. (dba Insightsoftware) | Diversified Financial Services |
| L + 5.75% | 05/22/26 |
| 914 |
|
| (9 | ) |
| (32 | ) | (2) (3) (5) |
HealthEdge Software, Inc. | Health Care Technology | 11.74% | L + 7.00% | 04/09/26 |
| 32,000 |
|
| 31,496 |
|
| 31,280 |
| (2) (3) (4) |
HealthEdge Software, Inc. | Health Care Technology | 11.74% | L + 7.00% | 04/09/26 |
| 2,964 |
|
| 2,964 |
|
| 2,897 |
| (2) (3) (4) |
HealthEdge Software, Inc. | Health Care Technology |
| L + 7.00% | 04/09/26 |
| 3,400 |
|
| (52 | ) |
| (77 | ) | (2) (3) (4) (5) |
HealthEdge Software, Inc. | Health Care Technology |
| L + 7.00% | 04/09/26 |
| 8,500 |
|
| (65 | ) |
| (191 | ) | (2) (3) (4) (5) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services | 10.38% | L + 6.00% | 12/15/26 |
| 17,557 |
|
| 17,336 |
|
| 17,206 |
| (2) (3) (4) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services | 10.10% | L + 5.75% | 12/15/26 |
| 18,616 |
|
| 13,934 |
|
| 13,668 |
| (2) (3) (4) (5) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services | 10.38% | L + 6.00% | 12/15/26 |
| 13,471 |
|
| 13,365 |
|
| 13,202 |
| (2) (3) (4) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services | 10.38% | L + 6.00% | 12/15/26 |
| 7,279 |
|
| 7,167 |
|
| 7,134 |
| (2) (3) (4) |
Helios Buyer, Inc. (dba Heartland) | Diversified Consumer Services |
| L + 6.00% | 12/15/26 |
| 2,199 |
|
| (30 | ) |
| (44 | ) | (2) (4) (5) |
Honor HN Buyer, Inc | Health Care Providers & Services | 10.48% | S + 5.75% | 10/15/27 |
| 21,875 |
|
| 21,511 |
|
| 21,383 |
| (2) (3) (4) |
Honor HN Buyer, Inc | Health Care Providers & Services | 10.48% | S + 5.75% | 10/15/27 |
| 13,816 |
|
| 5,801 |
|
| 5,654 |
| (2) (3) (4) (5) |
Honor HN Buyer, Inc | Health Care Providers & Services |
| S + 5.75% | 10/15/27 |
| 2,542 |
|
| (41 | ) |
| (57 | ) | (2) (3) (4) (5) |
Honor HN Buyer, Inc | Health Care Providers & Services |
| S + 5.75% | 10/15/27 |
| 19,555 |
|
| (183 | ) |
| (440 | ) | (2) (4) (5) |
HowlCO LLC (dba Lone Wolf) | Real Estate Mgmt. & Development | 10.57% | L + 6.00% | 10/23/26 |
| 32,007 |
|
| 31,627 |
|
| 30,407 |
| (1) (2) (3) (4) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
19
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of December 31, 2022 (continued)
(in thousands, except unit and per unit amounts)
Investment # | Industry | Interest | Reference Rate | Maturity |
| Par(++) |
| Cost |
| Fair |
| Footnotes | |||
HowlCO LLC (dba Lone Wolf) | Real Estate Mgmt. & Development | 10.69% | L + 6.00% | 10/23/26 | $ |
| 10,263 |
| $ | 10,184 |
| $ | 9,750 |
| (1) (2) (3) (4) |
HowlCO LLC (dba Lone Wolf) | Real Estate Mgmt. & Development | 10.73% | L + 6.00% | 10/23/26 |
|
| 9,818 |
|
| 9,755 |
|
| 9,327 |
| (1) (2) (3) (4) |
HS4 AcquisitionCo, Inc. (dba HotSchedules & Fourth) | Hotels, Restaurants & Leisure | 11.14% | L + 6.75% | 07/09/25 |
|
| 26,485 |
|
| 26,225 |
|
| 25,690 |
| (2) (3) (4) |
HS4 AcquisitionCo, Inc. (dba HotSchedules & Fourth) | Hotels, Restaurants & Leisure | 11.14% | L + 6.75% | 07/09/25 |
|
| 5,493 |
|
| 5,416 |
|
| 5,329 |
| (2) (3) (4) |
HS4 AcquisitionCo, Inc. (dba HotSchedules & Fourth) | Hotels, Restaurants & Leisure | 11.14% | L + 6.75% | 07/09/25 |
|
| 2,186 |
|
| 1,074 |
|
| 1,027 |
| (2) (3) (4) (5) |
HumanState Limited (dba PayProp) | Diversified Consumer Services | 9.43% | SN + 6.00% | 11/23/28 | GBP |
| 1,000 |
|
| 1,189 |
|
| 1,191 |
| (1) (2) (3) |
HumanState Limited (dba PayProp) | Diversified Consumer Services |
| SN + 6.00% | 11/23/28 | GBP |
| 100 |
|
| (4 | ) |
| (2 | ) | (1) (2) (3) (5) |
HumanState Limited (dba PayProp) | Diversified Consumer Services |
| SN + 6.00% | 11/23/28 | GBP |
| 270 |
|
| (2 | ) |
| (2 | ) | (1) (2) (3) (5) |
iCIMS, Inc. | Professional Services | 11.52% | S + 7.25% (Incl. 3.88% PIK) | 08/18/28 |
|
| 38,211 |
|
| 37,574 |
|
| 37,543 |
| (2) (3) (4) |
iCIMS, Inc. | Professional Services |
| S + 7.25% (Incl. 3.88% PIK) | 08/18/28 |
|
| 3,639 |
|
| (60 | ) |
| (64 | ) | (2) (3) (4) (5) |
iCIMS, Inc. | Professional Services |
| S + 7.25% | 08/18/28 |
|
| 10,150 |
|
| — |
|
| (178 | ) | (2) (3) (4) (5) |
Intelligent Medical Objects, Inc. | Health Care Technology | 10.62% | S + 6.00% | 05/11/29 |
|
| 11,386 |
|
| 11,175 |
|
| 11,159 |
| (2) (3) (4) |
Intelligent Medical Objects, Inc. | Health Care Technology | 10.61% | S + 6.00% | 05/11/28 |
|
| 1,396 |
|
| 240 |
|
| 237 |
| (2) (3) (4) (5) |
Intelligent Medical Objects, Inc. | Health Care Technology |
| S + 6.00% | 05/11/29 |
|
| 2,690 |
|
| (25 | ) |
| (54 | ) | (2) (3) (4) (5) |
Internet Truckstop Group, LLC (dba Truckstop) | Transportation Infrastructure | 10.23% | L + 5.50% | 04/02/25 |
|
| 38,291 |
|
| 37,723 |
|
| 37,812 |
| (2) (3) (4) |
Kaseya Inc. | IT Services | 10.33% | S + 5.75% | 06/25/29 |
|
| 16,900 |
|
| 16,661 |
|
| 16,646 |
| (2) (3) (4) |
Kaseya Inc. | IT Services |
| S + 5.75% | 06/25/29 |
|
| 1,010 |
|
| (7 | ) |
| (15 | ) | (2) (3) (4) (5) |
Kaseya Inc. | IT Services |
| S + 5.75% | 06/25/29 |
|
| 1,010 |
|
| (14 | ) |
| (15 | ) | (2) (3) (4) (5) |
LS Clinical Services Holdings, Inc (dba CATO) | Pharmaceuticals | 11.48% | L + 6.75% | 12/16/27 |
|
| 13,828 |
|
| 13,533 |
|
| 13,448 |
| (2) (3) (4) |
LS Clinical Services Holdings, Inc (dba CATO) | Pharmaceuticals | 11.18% | L + 6.75% | 12/16/26 |
|
| 1,995 |
|
| 1,956 |
|
| 1,941 |
| (2) (3) (4) |
MedeAnalytics, Inc. | Health Care Technology |
| S + 8.00% (incl. 1.50% PIK) | 10/09/26 |
|
| 43,737 |
|
| 41,615 |
|
| 34,552 |
| (2) (3) (4) (6) |
MerchantWise Solutions, LLC (dba HungerRush) | Diversified Financial Services | 9.31% | S + 6.00% | 06/01/28 |
|
| 19,779 |
|
| 19,415 |
|
| 19,186 |
| (2) (3) (4) |
MerchantWise Solutions, LLC (dba HungerRush) | Diversified Financial Services | 10.63% | S + 6.00% | 06/01/28 |
|
| 4,968 |
|
| 3,234 |
|
| 3,204 |
| (2) (3) (4) (5) |
MerchantWise Solutions, LLC (dba HungerRush) | Diversified Financial Services |
| S + 6.00% | 06/01/28 |
|
| 2,485 |
|
| (45 | ) |
| (75 | ) | (2) (3) (4) (5) |
Millstone Medical Outsourcing, LLC | Health Care Providers & Services | 10.87% | S + 6.00% | 12/15/27 |
|
| 9,231 |
|
| 9,074 |
|
| 9,047 |
| (2) (3) (4) |
Millstone Medical Outsourcing, LLC | Health Care Providers & Services | 12.5% | P + 5.00% | 12/15/27 |
|
| 1,998 |
|
| 366 |
|
| 360 |
| (2) (3) (4) (5) |
MRI Software LLC | Real Estate Mgmt. & Development | 10.23% | L + 5.50% | 02/10/26 |
|
| 27,464 |
|
| 27,138 |
|
| 26,331 |
| (3) |
MRI Software LLC | Real Estate Mgmt. & Development | 10.23% | L + 5.50% | 02/10/26 |
|
| 16,460 |
|
| 16,364 |
|
| 15,781 |
| (3) |
MRI Software LLC | Real Estate Mgmt. & Development |
| L + 5.50% | 02/10/26 |
|
| 1,143 |
|
| (6 | ) |
| (47 | ) | (3) (5) |
MRI Software LLC | Real Estate Mgmt. & Development |
| L + 5.50% | 02/10/26 |
|
| 3,238 |
|
| (13 | ) |
| (134 | ) | (2) (5) |
NFM & J, L.P. (dba the Facilities Group) | Professional Services | 10.13% | L + 5.75% | 11/30/27 |
|
| 15,391 |
|
| 15,137 |
|
| 14,929 |
| (2) (3) (4) |
NFM & J, L.P. (dba the Facilities Group) | Professional Services | 10.27% | L + 5.75% | 11/30/27 |
|
| 15,625 |
|
| 12,621 |
|
| 12,397 |
| (2) (3) (4) (5) |
NFM & J, L.P. (dba the Facilities Group) | Professional Services |
| L + 5.75% | 11/30/27 |
|
| 2,696 |
|
| (45 | ) |
| (81 | ) | (2) (3) (4) (5) |
One GI LLC | Health Care Providers & Services | 11.13% | L + 6.75% | 12/22/25 |
|
| 20,978 |
|
| 20,704 |
|
| 19,929 |
| (2) (3) (4) |
One GI LLC | Health Care Providers & Services | 11.13% | L + 6.75% | 12/22/25 |
|
| 10,307 |
|
| 10,148 |
|
| 9,791 |
| (2) (3) (4) |
One GI LLC | Health Care Providers & Services | 11.13% | L + 6.75% | 12/22/25 |
|
| 8,722 |
|
| 8,610 |
|
| 8,286 |
| (2) (3) (4) |
One GI LLC | Health Care Providers & Services | 11.07% | L + 6.75% | 12/22/25 |
|
| 5,679 |
|
| 5,543 |
|
| 5,357 |
| (2) (3) (4) (5) |
One GI LLC | Health Care Providers & Services |
| L + 6.75% | 12/22/25 |
|
| 3,246 |
|
| (42 | ) |
| (162 | ) | (2) (3) (4) (5) |
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology | 12.54% | S + 7.50% | 07/18/28 |
|
| 22,055 |
|
| 21,639 |
|
| 21,614 |
| (2) (3) (4) |
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology | 12.54% | S + 7.50% | 07/18/28 |
|
| 2,145 |
|
| 2,125 |
|
| 2,102 |
| (2) (3) (4) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
20
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of December 31, 2022 (continued)
(in thousands, except unit and per unit amounts)
Investment # | Industry | Interest | Reference Rate | Maturity | Par(++) |
| Cost |
| Fair |
| Footnotes | |||
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology | 12.53% | S + 7.50% | 07/18/28 | $ | 2,530 |
| $ | 1,170 |
| $ | 1,119 |
| (2) (3) (4) (5) |
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology |
| S + 6.75% | 07/18/28 |
| 1,705 |
|
| (32 | ) |
| (34 | ) | (2) (3) (4) (5) |
PDDS Holdco, Inc. (dba Planet DDS) | Health Care Technology |
| S + 6.75% | 07/18/28 |
| 2,530 |
|
| (23 | ) |
| (51 | ) | (2) (3) (4) (5) |
Picture Head Midco LLC | Entertainment | 11.11% | S + 6.75% | 08/31/23 |
| 19,521 |
|
| 19,416 |
|
| 19,130 |
| (2) (3) (4) |
Pioneer Buyer I, LLC | Software | 11.72% | L + 7.00% PIK | 11/01/28 |
| 23,810 |
|
| 23,438 |
|
| 23,334 |
| (2) (3) (4) |
Pioneer Buyer I, LLC | Software |
| L + 7.00% | 11/01/27 |
| 3,900 |
|
| (63 | ) |
| (78 | ) | (2) (3) (4) (5) |
Pluralsight, Inc | Professional Services | 11.83% | L + 8.00% | 04/06/27 |
| 68,747 |
|
| 67,688 |
|
| 67,200 |
| (2) (3) (4) |
Pluralsight, Inc | Professional Services | 12.36% | L + 8.00% | 04/06/27 |
| 4,600 |
|
| 2,234 |
|
| 2,196 |
| (2) (3) (4) (5) |
Premier Care Dental Management, LLC | Health Care Providers & Services | 9.88% | L + 5.50% | 08/05/28 |
| 16,906 |
|
| 16,623 |
|
| 16,399 |
| (2) (3) (4) |
Premier Care Dental Management, LLC | Health Care Providers & Services | 9.88% | L + 5.50% | 08/05/28 |
| 9,172 |
|
| 7,647 |
|
| 7,475 |
| (2) (3) (4) (5) |
Premier Care Dental Management, LLC | Health Care Providers & Services | 9.73% | L + 5.50% | 08/05/27 |
| 2,769 |
|
| 880 |
|
| 840 |
| (2) (3) (4) (5) |
Premier Imaging, LLC (dba Lucid Health) | Health Care Providers & Services | 10.13% | L + 5.75% | 01/02/25 |
| 16,404 |
|
| 16,269 |
|
| 15,994 |
| (2) (3) (4) |
Premier Imaging, LLC (dba Lucid Health) | Health Care Providers & Services | 10.13% | L + 5.75% | 01/02/25 |
| 10,831 |
|
| 10,720 |
|
| 10,560 |
| (2) (3) (4) |
Premier Imaging, LLC (dba Lucid Health) | Health Care Providers & Services | 10.13% | L + 5.75% | 01/02/25 |
| 4,580 |
|
| 4,533 |
|
| 4,466 |
| (2) (3) (4) |
Premier Imaging, LLC (dba Lucid Health) | Health Care Providers & Services | 10.13% | L + 5.75% | 01/02/25 |
| 10,242 |
|
| 2,832 |
|
| 2,680 |
| (2) (3) (4) (5) |
Project Eagle Holdings, LLC (dba Exostar) | Aerospace & Defense | 10.64% | L + 6.25% | 07/06/26 |
| 40,093 |
|
| 39,438 |
|
| 39,291 |
| (2) (3) (4) |
Project Eagle Holdings, LLC (dba Exostar) | Aerospace & Defense |
| L + 6.50% | 07/06/26 |
| 3,418 |
|
| (51 | ) |
| (68 | ) | (2) (3) (4) (5) |
Prophix Software Inc. (dba Pound Bidco) | Diversified Financial Services | 10.67% | L + 6.50% | 01/30/26 |
| 17,147 |
|
| 16,920 |
|
| 16,932 |
| (1) (2) (3) (4) |
Prophix Software Inc. (dba Pound Bidco) | Diversified Financial Services | 10.67% | L + 6.50% | 01/30/26 |
| 7,015 |
|
| 6,910 |
|
| 6,928 |
| (1) (2) (3) (4) |
Prophix Software Inc. (dba Pound Bidco) | Diversified Financial Services |
| L + 6.50% | 01/30/26 |
| 3,118 |
|
| (39 | ) |
| (39 | ) | (1) (2) (4) (5) |
PT Intermediate Holdings III, LLC (dba Parts Town) | Trading Companies & Distributors | 10.23% | L + 5.50% | 11/01/28 |
| 20,543 |
|
| 20,364 |
|
| 19,824 |
| (2) (3) |
PT Intermediate Holdings III, LLC (dba Parts Town) | Trading Companies & Distributors | 10.23% | L + 5.50% | 11/01/28 |
| 1,826 |
|
| 1,810 |
|
| 1,762 |
| (2) (3) |
PT Intermediate Holdings III, LLC (dba Parts Town) | Trading Companies & Distributors | 10.23% | L + 5.50% | 11/01/28 |
| 1,762 |
|
| 1,747 |
|
| 1,701 |
| (2) (3) |
PT Intermediate Holdings III, LLC (dba Parts Town) | Trading Companies & Distributors | 10.23% | L + 5.50% | 11/01/28 |
| 1,261 |
|
| 1,250 |
|
| 1,217 |
| (2) (3) |
Purfoods, LLC | Health Care Providers & Services | 10.90% | L + 6.25% | 08/12/26 |
| 24,047 |
|
| 23,692 |
|
| 23,505 |
| (2) (3) (4) |
Purfoods, LLC | Health Care Providers & Services | 10.88% | L + 6.25% | 08/12/26 |
| 16,233 |
|
| 15,994 |
|
| 15,868 |
| (2) (3) (4) |
Qualawash Holdings, LLC | Commercial Services & Supplies | 9.44% | L + 5.50% | 08/31/26 |
| 10,345 |
|
| 10,211 |
|
| 10,138 |
| (2) (3) (4) |
Qualawash Holdings, LLC | Commercial Services & Supplies | 9.89% | L + 5.50% | 08/31/26 |
| 2,607 |
|
| 2,123 |
|
| 2,098 |
| (2) (3) (4) (5) |
Qualawash Holdings, LLC | Commercial Services & Supplies |
| L + 5.50% | 08/31/26 |
| 2,613 |
|
| (33 | ) |
| (52 | ) | (2) (3) (4) (5) |
Riverpoint Medical, LLC | Health Care Equipment & Supplies | 9.73% | S + 5.00% | 06/21/25 |
| 13,477 |
|
| 13,367 |
|
| 13,174 |
| (2) (3) (4) |
Riverpoint Medical, LLC | Health Care Equipment & Supplies | 9.73% | S + 5.00% | 06/21/25 |
| 9,548 |
|
| 9,510 |
|
| 9,333 |
| (2) (3) (4) |
Riverpoint Medical, LLC | Health Care Equipment & Supplies |
| S + 5.00% | 06/21/25 |
| 1,806 |
|
| (4 | ) |
| (41 | ) | (2) (3) (4) (5) |
Rodeo Buyer Company (dba Absorb Software) | Professional Services | 10.63% | L + 6.25% | 05/25/27 |
| 19,155 |
|
| 18,858 |
|
| 18,819 |
| (1) (2) (3) (4) |
Rodeo Buyer Company (dba Absorb Software) | Professional Services | 10.49% | L + 6.25% | 05/25/27 |
| 3,065 |
|
| 261 |
|
| 253 |
| (1) (2) (4) (5) |
Rubrik,Inc. | Software | 10.75% | S + 6.50% | 06/10/27 |
| 32,242 |
|
| 31,657 |
|
| 31,597 |
| (2) (3) (4) |
Rubrik,Inc. | Software | 11.45% | S + 7.00% | 06/10/27 |
| 3,685 |
|
| 1,567 |
|
| 1,493 |
| (2) (3) (4) (5) |
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) | Diversified Consumer Services | 10.44% | S + 6.00% | 07/06/27 |
| 9,851 |
|
| 9,669 |
|
| 9,653 |
| ^ (2) (3) (4) |
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) | Diversified Consumer Services |
| S + 6.00% | 07/06/27 |
| 1,700 |
|
| (31 | ) |
| (34 | ) | ^ (2) (3) (4) (5) |
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) | Diversified Consumer Services |
| S + 6.00% | 07/06/27 |
| 6,800 |
|
| (62 | ) |
| (136 | ) | ^ (2) (3) (4) (5) |
SpendMend, LLC | Health Care Providers & Services | 10.17% | S + 5.75% | 03/01/28 |
| 12,212 |
|
| 12,023 |
|
| 11,907 |
| (2) (3) (4) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
21
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of December 31, 2022 (continued)
(in thousands, except unit and per unit amounts)
Investment # | Industry | Interest | Reference Rate | Maturity | Par(++) |
| Cost |
| Fair |
| Footnotes | |||
SpendMend, LLC | Health Care Providers & Services | 10.17% | S + 5.75% | 03/01/28 | $ | 5,339 |
| $ | 2,093 |
| $ | 2,018 |
| (2) (3) (4) (5) |
SpendMend, LLC | Health Care Providers & Services | 10.17% | S + 5.75% | 03/01/28 |
| 1,605 |
|
| 189 |
|
| 174 |
| (2) (3) (4) (5) |
StarCompliance Intermediate, LLC | Diversified Financial Services | 11.48% | L + 6.75% | 01/12/27 |
| 14,400 |
|
| 14,192 |
|
| 14,184 |
| (2) (3) (4) |
StarCompliance Intermediate, LLC | Diversified Financial Services | 11.48% | L + 6.75% | 01/12/27 |
| 2,319 |
|
| 2,282 |
|
| 2,285 |
| (2) (3) (4) |
StarCompliance Intermediate, LLC | Diversified Financial Services | 11.14% | L + 6.75% | 01/12/27 |
| 2,300 |
|
| 544 |
|
| 540 |
| (2) (4) (5) |
Sundance Group Holdings, Inc. (dba NetDocuments) | Software | 10.75% | S + 6.25% | 07/02/27 |
| 37,327 |
|
| 36,867 |
|
| 36,394 |
| (2) (3) (4) |
Sundance Group Holdings, Inc. (dba NetDocuments) | Software | 10.75% | S + 6.25% | 07/02/27 |
| 11,198 |
|
| 11,023 |
|
| 10,918 |
| (2) (3) (4) |
Sundance Group Holdings, Inc. (dba NetDocuments) | Software | 10.93% | S + 6.25% | 07/02/27 |
| 3,239 |
|
| 3,144 |
|
| 3,158 |
| (3) (4) |
Sundance Group Holdings, Inc. (dba NetDocuments) | Software |
| S + 6.25% | 07/02/27 |
| 4,479 |
|
| (53 | ) |
| (112 | ) | (2) (3) (4) (5) |
Sunstar Insurance Group, LLC | Insurance | 10.73% | S + 6.00% | 10/09/26 |
| 12,009 |
|
| 11,833 |
|
| 11,769 |
| (2) (3) (4) |
Sunstar Insurance Group, LLC | Insurance | 10.73% | S + 6.00% | 10/09/26 |
| 7,603 |
|
| 7,495 |
|
| 7,451 |
| (2) (3) (4) |
Sunstar Insurance Group, LLC | Insurance | 10.73% | S + 6.00% | 10/09/26 |
| 338 |
|
| 288 |
|
| 284 |
| (2) (3) (4) (5) |
Sunstar Insurance Group, LLC | Insurance |
| S + 6.00% | 10/09/26 |
| 3,503 |
|
| (53 | ) |
| (70 | ) | (2) (3) (4) (5) |
Sunstar Insurance Group, LLC | Insurance |
| S + 6.00% | 10/09/26 |
| 18,136 |
|
| (328 | ) |
| (363 | ) | (2) (3) (4) (5) |
Superman Holdings, LLC (dba Foundation Software) | Construction & Engineering | 10.85% | L + 6.13% | 08/31/27 |
| 40,174 |
|
| 39,442 |
|
| 39,370 |
| (2) (3) (4) |
Superman Holdings, LLC (dba Foundation Software) | Construction & Engineering |
| L + 8.00% | 08/31/26 |
| 5,134 |
|
| (79 | ) |
| (103 | ) | (2) (4) (5) |
Sweep Purchaser LLC | Commercial Services & Supplies | 10.48% | L + 5.75% | 11/30/26 |
| 26,005 |
|
| 25,642 |
|
| 25,550 |
| (2) (3) (4) |
Sweep Purchaser LLC | Commercial Services & Supplies | 10.35% | L + 5.75% | 11/30/26 |
| 8,256 |
|
| 8,139 |
|
| 8,111 |
| (2) (3) (4) |
Sweep Purchaser LLC | Commercial Services & Supplies | 10.20% | L + 5.75% | 11/30/26 |
| 6,620 |
|
| 6,523 |
|
| 6,504 |
| (2) (3) (4) |
Sweep Purchaser LLC | Commercial Services & Supplies | 10.35% | L + 5.75% | 11/30/26 |
| 3,301 |
|
| 3,247 |
|
| 3,244 |
| (2) (3) (4) |
Sweep Purchaser LLC | Commercial Services & Supplies | 10.14% | L + 5.75% | 11/30/26 |
| 4,201 |
|
| 700 |
|
| 683 |
| (2) (4) (5) |
Syntellis Performance Solutions, LLC (dba Axiom) | Health Care Technology | 10.82% | S + 6.50% | 08/02/27 |
| 37,377 |
|
| 36,565 |
|
| 36,630 |
| (2) (3) (4) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 10.24% | S + 6.00% | 08/15/25 |
| 16,561 |
|
| 16,363 |
|
| 16,271 |
| (2) (3) (4) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 10.41% | S + 6.00% | 08/15/25 |
| 8,951 |
|
| 8,823 |
|
| 8,794 |
| (2) (3) (4) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 9.91% | S + 5.50% | 08/15/25 |
| 7,164 |
|
| 7,052 |
|
| 7,039 |
| (2) (3) (4) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 10.24% | S + 6.00% | 08/15/25 |
| 3,903 |
|
| 3,853 |
|
| 3,835 |
| (2) (3) (4) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 10.05% | S + 5.50% | 08/15/25 |
| 2,361 |
|
| 1,862 |
|
| 1,847 |
| (2) (3) (4) (5) |
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) | Health Care Providers & Services | 10.20% | S + 5.50% | 08/15/25 |
| 3,947 |
|
| 1,018 |
|
| 985 |
| (2) (3) (4) (5) |
Thrasio, LLC | Internet & Direct Marketing Retail | 11.17% | L + 7.00% | 12/18/26 |
| 36,249 |
|
| 35,781 |
|
| 33,712 |
| (2) (3) (4) |
Thrasio, LLC | Internet & Direct Marketing Retail |
| L + 7.00% | 12/18/26 |
| 13,604 |
|
| (52 | ) |
| (952 | ) | (2) (3) (4) (5) |
Total Vision LLC | Health Care Providers & Services | 10.32% | S + 6.00% | 07/15/26 |
| 15,522 |
|
| 15,256 |
|
| 15,212 |
| (2) (3) (4) |
Total Vision LLC | Health Care Providers & Services | 10.60% | S + 6.00% | 07/15/26 |
| 4,552 |
|
| 4,485 |
|
| 4,461 |
| (2) (3) (4) |
Total Vision LLC | Health Care Providers & Services | 10.22% | S + 6.00% | 07/15/26 |
| 2,275 |
|
| 2,242 |
|
| 2,230 |
| (2) (3) (4) |
Total Vision LLC | Health Care Providers & Services | 10.42% | S + 6.00% | 07/15/26 |
| 9,494 |
|
| 1,009 |
|
| 907 |
| (2) (3) (4) (5) |
Total Vision LLC | Health Care Providers & Services |
| S + 6.00% | 07/15/26 |
| 1,150 |
|
| (16 | ) |
| (23 | ) | (2) (3) (4) (5) |
USN Opco LLC (dba Global Nephrology Solutions) | Health Care Providers & Services | 10.48% | S + 5.75% | 12/21/26 |
| 20,037 |
|
| 19,754 |
|
| 19,436 |
| (2) (3) (4) |
USN Opco LLC (dba Global Nephrology Solutions) | Health Care Providers & Services | 10.48% | S + 5.75% | 12/21/26 |
| 6,963 |
|
| 6,893 |
|
| 6,754 |
| (2) (3) (4) |
USN Opco LLC (dba Global Nephrology Solutions) | Health Care Providers & Services | 10.45% | S + 5.75% | 12/21/26 |
| 8,622 |
|
| 4,280 |
|
| 4,084 |
| (2) (3) (4) (5) |
USN Opco LLC (dba Global Nephrology Solutions) | Health Care Providers & Services | 10.48% | S + 5.75% | 12/21/26 |
| 2,812 |
|
| 1,767 |
|
| 1,721 |
| (2) (4) (5) |
Viant Medical Holdings, Inc. | Health Care Equipment & Supplies | 10.63% | L + 6.25% | 07/02/25 |
| 18,805 |
|
| 18,646 |
|
| 18,100 |
| (2) (3) |
The accompanying notes are an integral part of these unaudited consolidated financial statements.
22
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of December 31, 2022 (continued)
(in thousands, except unit and per unit amounts)
Investment # | Industry | Interest | Reference Rate | Maturity | Par(++) |
| Cost |
| Fair |
| Footnotes | |||
Volt Bidco, Inc. (dba Power Factors) | Independent Power and Renewable Electricity Producers | 11.08% | S + 6.50% | 08/11/27 | $ | 31,617 |
| $ | 31,082 |
| $ | 31,064 |
| (2) (3) (4) |
Volt Bidco, Inc. (dba Power Factors) | Independent Power and Renewable Electricity Producers | 11.07% | S + 6.50% PIK | 08/11/27 |
| 5,716 |
|
| 3,059 |
|
| 2,959 |
| (2) (3) (4) (5) |
Volt Bidco, Inc. (dba Power Factors) | Independent Power and Renewable Electricity Producers |
| S + 6.50% | 08/11/27 |
| 3,343 |
|
| (55 | ) |
| (59 | ) | (2) (3) (4) (5) |
VRC Companies, LLC (dba Vital Records Control) | Commercial Services & Supplies | 10.65% | L + 5.50% | 06/29/27 |
| 29,631 |
|
| 29,283 |
|
| 28,668 |
| (2) (3) (4) |
VRC Companies, LLC (dba Vital Records Control) | Commercial Services & Supplies |
| P + 4.50% | 06/29/27 |
| 858 |
|
| (10 | ) |
| (28 | ) | (2) (3) (4) (5) |
WebPT, Inc. | Health Care Technology | 11.48% | L + 6.75% | 01/18/28 |
| 12,701 |
|
| 12,369 |
|
| 12,320 |
| (2) (3) (4) |
WebPT, Inc. | Health Care Technology | 10.98% | L + 6.75% | 01/18/28 |
| 12,434 |
|
| 12,271 |
|
| 12,061 |
| (2) (3) (4) |
WebPT, Inc. | Health Care Technology | 11.26% | L + 6.75% | 01/18/28 |
| 2,146 |
|
| 802 |
|
| 763 |
| (2) (3) (4) (5) |
WebPT, Inc. | Health Care Technology |
| L + 6.75% | 01/18/28 |
| 2,146 |
|
| (14 | ) |
| (64 | ) | (2) (3) (4) (5) |
Wellness AcquisitionCo, Inc. (dba SPINS) | IT Services | 9.91% | L + 5.50% | 01/20/27 |
| 20,202 |
|
| 19,906 |
|
| 19,899 |
| (2) (3) (4) |
Wellness AcquisitionCo, Inc. (dba SPINS) | IT Services |
| L + 5.50% | 01/20/27 |
| 2,400 |
|
| (33 | ) |
| (36 | ) | (2) (4) (5) |
Wellness AcquisitionCo, Inc. (dba SPINS) | IT Services |
| L + 5.50% | 01/20/27 |
| 3,700 |
|
| (31 | ) |
| (56 | ) | (2) (3) (4) (5) |
Whitewater Holding Company LLC | Diversified Consumer Services | 10.48% | L + 5.75% | 12/21/27 |
| 15,628 |
|
| 15,361 |
|
| 15,198 |
| (2) (3) (4) |
Whitewater Holding Company LLC | Diversified Consumer Services | 10.48% | L + 5.75% | 12/21/27 |
| 5,245 |
|
| 5,152 |
|
| 5,101 |
| (2) (3) (4) |
Whitewater Holding Company LLC | Diversified Consumer Services | 10.48% | L + 5.75% | 12/21/27 |
| 5,213 |
|
| 5,123 |
|
| 5,069 |
| (2) (3) (4) |
Whitewater Holding Company LLC | Diversified Consumer Services | 10.50% | L + 5.75% | 12/21/27 |
| 2,100 |
|
| 700 |
|
| 677 |
| (2) (3) (4) (5) |
Whitewater Holding Company LLC | Diversified Consumer Services | 10.54% | L + 6.00% | 12/21/27 |
| 2,900 |
|
| 268 |
|
| 239 |
| (2) (3) (4) (5) |
WorkForce Software, LLC | Software | 12.46% | L + 7.25% (incl. 3.00% PIK) | 07/31/25 |
| 11,651 |
|
| 11,524 |
|
| 11,418 |
| (2) (3) (4) |
WorkForce Software, LLC | Software | 12.46% | L + 7.25% (incl. 3.00% PIK) | 07/31/25 |
| 8,963 |
|
| 8,850 |
|
| 8,784 |
| (2) (3) (4) |
WorkForce Software, LLC | Software | 12.46% | L + 7.25% (incl. 3.00% PIK) | 07/31/25 |
| 2,809 |
|
| 2,768 |
|
| 2,753 |
| (2) (3) (4) |
WorkForce Software, LLC | Software | 12.46% | L + 7.25% (incl. 3.00% PIK) | 07/31/25 |
| 2,065 |
|
| 2,042 |
|
| 2,023 |
| (2) (3) (4) |
WorkForce Software, LLC | Software | 11.71% | L + 6.50% | 07/31/25 |
| 980 |
|
| 643 |
|
| 634 |
| (2) (3) (4) (5) |
WSO2, Inc. | IT Services | 11.80% | L + 7.50% (incl. 3.00% PIK) | 11/04/26 |
| 29,147 |
|
| 28,700 |
|
| 28,856 |
| (2) (3) (4) |
Zarya Intermediate, LLC (dba iOFFICE) | Real Estate Mgmt. & Development | 10.90% | S + 6.50% | 07/01/27 |
| 80,545 |
|
| 80,545 |
|
| 79,740 |
| (2) (3) (4) |
Zarya Intermediate, LLC (dba iOFFICE) | Real Estate Mgmt. & Development |
| S + 6.50% | 07/01/27 |
| 8,383 |
|
| — |
|
| (84 | ) | (2) (3) (4) (5) |
Zodiac Intermediate, LLC (dba Zipari) | Health Care Technology | 12.42% | L + 8.00% | 12/21/26 |
| 46,540 |
|
| 45,553 |
|
| 42,002 |
| (2) (3) (4) |
Zodiac Intermediate, LLC (dba Zipari) | Health Care Technology | 12.30% | L + 8.00% | 12/22/25 |
| 7,000 |
|
| 6,873 |
|
| 6,317 |
| (2) (4) |
Total 1st Lien/Senior Secured Debt |
|
|
|
|
|
|
| 2,610,793 |
|
| 2,561,708 |
|
| |
1st Lien/Last-Out Unitranche (7) - 1.47% |
|
|
|
|
|
|
|
|
|
|
| |||
EDB Parent, LLC (dba Enterprise DB) | Software | 11.58% | S + 7.00% | 07/07/28 | $ | 17,879 |
| $ | 17,425 |
| $ | 17,432 |
| (2) (3) (4) |
EDB Parent, LLC (dba Enterprise DB) | Software | 11.58% | S + 7.00% | 07/07/28 |
| 6,958 |
|
| 985 |
|
| 811 |
| (2) (3) (4) (5) |
Total 1st Lien/Last-Out Unitranche |
|
|
|
|
|
|
| 18,410 |
|
| 18,243 |
|
| |
2nd Lien/Senior Secured Debt 0.75% |
|
|
|
|
|
|
|
|
|
|
| |||
Zep Inc. | Chemicals | 12.98% | L + 8.25% | 08/11/25 | $ | 15,410 |
| $ | 15,384 |
| $ | 9,246 |
| (3) |
Total 2nd Lien/Senior Secured Debt |
|
|
|
|
|
|
| 15,384 |
|
| 9,246 |
|
| |
Unsecured Debt 0.45% |
|
|
|
|
|
|
|
|
|
|
| |||
CivicPlus LLC | Software | 16.54% | S + 11.75% PIK | 06/09/34 | $ | 5,753 |
| $ | 5,590 |
| $ | 5,552 |
| (2) (3) (4) |
Total Unsecured Debt |
|
|
|
|
|
|
| 5,590 |
|
| 5,552 |
|
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
23
Goldman Sachs Private Middle Market Credit II LLC
Consolidated Schedule of Investments as of December 31, 2022 (continued)
(in thousands, except unit and per unit amounts)
Investment # | Industry | Initial |
| Shares |
| Cost |
| Fair |
| Footnotes | |||
Preferred Stock - 3.30% |
|
|
|
|
|
|
|
|
|
| |||
Broadway Parent, LLC | Diversified Financial Services | 01/25/21 |
|
| 3,700,000 |
| $ | 3,718 |
| $ | 5,022 |
| (2) (4) (9) |
CloudBees, Inc. | Software | 11/24/21 |
|
| 1,038,917 |
|
| 11,623 |
|
| 11,407 |
| (2) (4) (9) |
Diligent Corporation | Professional Services | 04/06/21 |
|
| 4,400 |
|
| 4,290 |
|
| 5,152 |
| (2) (4) (9) |
Foundation Software | Construction & Engineering | 08/31/20 |
|
| 912 |
|
| 912 |
|
| 1,123 |
| (2) (4) (9) |
Governmentjobs.com, Inc. (dba NeoGov) | Software | 12/02/21 |
|
| 9,549 |
|
| 9,310 |
|
| 10,412 |
| (2) (4) (9) |
MedeAnalytics, Inc. | Health Care Technology | 10/09/20 |
|
| 1,825,100 |
|
| 1,825 |
|
| — |
| (2) (4) (9) |
WSO2, Inc. | IT Services | 11/04/21 |
|
| 509,767 |
|
| 8,052 |
|
| 7,878 |
| (2) (4) (9) |
Total Preferred Stock |
|
|
|
|
|
| 39,730 |
|
| 40,994 |
|
| |
Common Stock - 0.96% |
|
|
|
|
|
|
|
|
|
| |||
Abacus Data Holdings, Inc. (dba Clutch Intermediate Holdings) | Software | 03/10/21 |
|
| 26,555 |
| $ | 2,655 |
| $ | 2,124 |
| (2) (4) (9) |
Exostar LLC - Class B | Aerospace & Defense | 07/06/20 |
|
| 1,424,165 |
|
| — |
|
| 1,225 |
| (2) (4) (9) |
Foundation Software - Class B | Construction & Engineering | 08/31/20 |
|
| 490,234 |
|
| — |
|
| 431 |
| (2) (4) (9) |
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) | Diversified Consumer Services | 07/06/22 |
|
| 1,000 |
|
| 1,000 |
|
| 1,225 |
| ^ (2) (4) (9) |
Total Vision LLC | Health Care Providers & Services | 07/15/21 |
|
| 115,714 |
|
| 2,150 |
|
| 1,971 |
| (2) (4) (9) |
Volt Bidco, Inc. (dba Power Factors) | Independent Power and Renewable Electricity Producers | 08/11/21 |
|
| 3,044 |
|
| 3,091 |
|
| 2,765 |
| (2) (4) (9) |
Whitewater Holding Company LLC | Diversified Consumer Services | 12/21/21 |
|
| 21,000 |
|
| 2,100 |
|
| 2,162 |
| (2) (4) (9) |
Total Common Stock |
|
|
|
|
|
| 10,996 |
|
| 11,903 |
|
| |
Warrants - 0.04% |
|
|
|
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CloudBees, Inc. | Software | 11/24/21 |
|
| 300,946 |
| $ | 1,666 |
| $ | 551 |
| (2) (4) (9) |
Total Warrants |
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|
|
|
|
| 1,666 |
|
| 551 |
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| |
Investments in Affiliated Money Market Fund - 9.88% |
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Goldman Sachs Financial Square Government Fund - Institutional Shares |
|
|
|
| 122,498,973 |
| $ | 122,499 |
| $ | 122,499 |
| ^^^ (3) (10) |
Total Investments in Affiliated Money Market Fund |
|
|
|
|
|
| 122,499 |
|
| 122,499 |
|
| |
Total Investments - 223.35% |
|
|
|
|
| $ | 2,825,068 |
| $ | 2,770,696 |
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(+) Represents the actual interest rate for partially or fully funded debt in effect as of the reporting date. Certain investments are subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by the larger of the floor or the reference to either L, S, SN or alternate base rate (commonly based on the P, unless otherwise noted) at the borrower's option, which reset periodically based on the terms of the credit agreement. L and S loans are typically indexed to 12 month, 6 month, 3 month or 1 month L or S rates. As of December 31, 2022, rates for the 12 month, 6 month, 3 month and 1 month L were 5.48%, 5.14%, 4.77% and 4.39%, respectively. As of December 31, 2022, 1 month S was 4.06%, 3 month S was 3.62%, 3 month SN was 3.43%, P was 7.50%, and CDN P was 6.45%. For investments with multiple reference rates or alternate base rates, the interest rate shown is the weighted average interest rate in effect at December 31, 2022.
(++) Par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in $ unless otherwise noted, €, GBP or CAD.
# Percentages are based on net assets.
^ As defined in the Investment Company Act, the investment is deemed to be an “affiliated person” of the Company because the Company owns, either directly or indirectly, 5% or more of the portfolio company’s outstanding voting securities. See Note 3 “Significant Agreements and Related Party Transactions”.
^^^ The investment is otherwise deemed to be an “affiliated person” of the Company. See Note 3 “Significant Agreements and Related Party Transactions”.
PIK Payment-In-Kind
The accompanying notes are an integral part of these unaudited consolidated financial statements.
24
Goldman Sachs Private Middle Market Credit II LLC
Notes to the Consolidated Financial Statements
(in thousands, except unit and per unit amounts)
(Unaudited)
1. ORGANIZATION
Goldman Sachs Private Middle Market Credit II LLC (the “Company”), which term refers to either Goldman Sachs Private Middle Market Credit II LLC or Goldman Sachs Private Middle Market Credit II LLC, together with its consolidated subsidiaries, as the context may require) was formed on December 20, 2018 as a Delaware limited liability company and commenced operations on April 11, 2019. The Company has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “Investment Company Act”).Act. In addition, the Company intends to electhas elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year endingended December 31, 2019.
The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien debt, unitranche debt, including last outlast-out portions of such loans, and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments.
Goldman Sachs Asset Management, L.P. (“GSAM”), a Delaware limited partnership and an affiliate of Goldman Sachs & Co. LLC (including its predecessors, “GS & Co.”), is the investment adviser (the “Investment Adviser”)Investment Adviser of the Company. The term “Goldman Sachs” refers to The Goldman Sachs Group, Inc. (“GS Group Inc.”), together with GS & Co., GSAM and its other subsidiaries.
On March 25, 2019 (the “Initial Closing Date”), the Company began accepting subscription agreements (“Subscription Agreements”) from investors acquiring common units of the Company’s limited liability company interests (“Units”) in the Company’s private offering. Under the terms of the Subscription Agreements, investors are required to make capital contributions up to the undrawn amount of their capital commitment to purchase Units each time the Company delivers a drawdown notice. On February 26, 2020, the Company’s board of directors (the “Board of Directors” or the “Board”) approved an extension of the final date on which the Company accepted Subscription Agreements (the “Final Closing Date”) to September 26, 2020.
The investment period commenced on the Initial Closing Date and will continue until the third anniversary of the date of the final closingFinal Closing Date in the Company’s private offering, (such final closing to occur no later than the 12 month anniversary of the Initial Closing Date), provided that it may be extended by the Board of Directors, in its discretion, for one additional twelve-month period, and, with the approval of amajority-in-interest of the unitholders of the Company (the “Unitholders”), for up to one additional year thereafter. In addition, the Board of Directors may terminate the investment period at any time in its discretion. On August 2, 2023, the Board approved and authorized an extension of the investment period of the Company for an additional twelve-month period ending September 26, 2024.
Following the end of the investment period, the Company will have the right to issue drawdowns only (i) to pay, and/or establish reserves for, actual or anticipated Company expenses, liabilities, including the payment or repayment of indebtedness for borrowed money (including through the issuance of notes and other evidence of indebtedness), other indebtedness, financings or extensions of credit, or other obligations, contingent or otherwise, including the Management Fee (as defined below), whether incurred before or after the end of the investment period, (ii) to fulfill investment commitments made or approved by the BDC investment committee of Goldman Sachs Asset Management's Private Credit Team (the “BDC Investment Committee (as defined below)Committee”) prior to the expiration of the Investment Period,investment period, (iii) to engage in hedging transactions or (iv) to make additional investments in existing portfolio companies (including transactions to hedge interest rate or currency risks related to such additional investment).
The term of the Company will be five years fromexpire on the five-year anniversary of the expiration of the investment period, subject to the Board of Directors’ right to liquidate the Company at any time and to extend the term of the Company for up to two successiveone-year periods. Upon the request of the Board of Directors and the approval of amajority-in-interest of the Unitholders, the term of the Company may be further extended.
Credit Alternatives GP LLC (the “Initial Member”), an affiliate of the Investment Adviser, made a capital contribution to the Company of one hundred dollars on April 11, 2019 and served as the sole initial member of the Company. The Company cancelled the Initial Member’s interest in the Company on May 3, 2019, the first date on which investors (other than the Initial Member) made their initial capital contribution to purchase Units (the “Initial Drawdown Date”).
25
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2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Company’s functional currency is U.S. dollars (“USD”)USD and these consolidated financial statements have been prepared in that currency. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to RegulationS-X. This requires the Company to make certain estimates and assumptions that may affect the amounts reported in the consolidated financial statements and accompanying notes. These consolidated financial statements reflect normal and recurring adjustments that in the opinion of the Company are necessary for the fair statement of the results for the periods presented. Actual results may differ from the estimates and assumptions included in the consolidated financial statements.
TheCertain financial information reflects all normal recurring adjustments necessarythat is included in annual consolidated financial statements, including certain financial statement disclosures, prepared in accordance with GAAP, is not required for fair presentation ofinterim reporting purposes and has been condensed or omitted herein. These consolidated financial statements should be read in conjunction with the informationCompany’s audited consolidated financial statements and notes related thereto for the period presented.year ended December 31, 2022, included in the Company’s annual report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission (the "SEC") on March 2, 2023. The results for the period from April 11, 2019 (commencement of operations) to Junethree and nine months ended September 30, 20192023 are not necessarily indicative of the results to be expected for the full fiscal year, any other interim period, or any future year or period.
9
As an investment company, the Company applies the accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies (“ASC 946”) issued by the Financial Accounting Standards Board (“FASB”).
Basis of Consolidation
As provided under ASC 946, the Company will not consolidate its investment in a 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 financial position and results of operations of its wholly owned subsidiaries, PMMC II Blocker III LLC, Goldman Sachs Private Middle Market Credit II SPV II LLC (“SPV”), PMMC II Blocker IV LLC, PMMC II Blocker V LLC and PMMC II Blocker VI LLC. All significant intercompany transactions and balances have been eliminated in consolidation.
Revenue Recognition
The Company records its investment transactions on a trade date basis, which is the date when the Company assumes the risks for gains and losses related to that instrument. Realized gains and losses are based on the specific identification method.
Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Discounts and premiums to par value on investments purchased are accreted and amortized respectively, into interest income over the life of the respective investment using the effective interest method. Loan origination fees, original issue discount (“OID”) and market discounts or premiums are capitalized and amortized into interest income using the effective interest method or straight-line method, as applicable. Exit fees that are receivable upon repayment of a loan or debt security are amortized into interest income over the life of the respective investment. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts are recorded as interest income. For the period from April 11, 2019 (commencement of operations) to June 30, 2019income, for which the Company has earned $0 in prepayment premiums and $0 in accelerated accretion of upfront loan origination fees and unamortized discounts.the following:
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| For the Three Months Ended |
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| For the Nine Months Ended |
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| September 30, 2023 |
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| September 30, 2022 |
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| September 30, 2023 |
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| September 30, 2022 |
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Accelerated amortization of upfront loan origination fees and unamortized discounts |
| $ | 1,721 |
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| $ | 2,193 |
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| $ | 2,110 |
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| $ | 2,381 |
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Fees received from portfolio companies (directors’ fees, consulting fees, administrative fees, tax advisory fees and other similar compensation) are paid to the Company, unless, to the extent required by applicable law or exemptive relief, if any, therefrom, the Company only receives its allocable portion of such fees when invested in the same portfolio company as another accountAccount (as defined below) managed by the Investment Adviser.
Dividend income on preferred equity investments is recorded 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 investments is recorded on the record date for private portfolio companies and on theex-dividend date for publicly traded portfolio companies. Interest and dividend income are presented net of withholding tax, if any.
Certain investments may have contractualpayment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the principal amount or shares (if equity) of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon the investment being called by the issuer. PIK is recorded as interest or dividend income, as applicable. If at any point the Company believes PIK is not expected to be realized, the investment generating PIK will be placed onnon-accrual status. When a PIK investment is placed onnon-accrual status, the accrued, uncapitalized interest or dividends are generally reversed through interest or dividend income, respectively.income.
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Certain structuring fees, amendment fees, syndication fees and commitment fees are recorded as other income when earned. Administrative agent fees received by the Company are recorded as other income when the services are rendered over time.
Non-Accrual Investments
Non-Accrual Investments
Investments are placed onnon-accrual status when it is probable that principal, interest or dividends will not be collected according to contractual terms. Accrued interest or dividends generally are reversed when an investment is placed onnon-accrual status. Interest or dividend payments received onnon-accrual investments may be recognized as income or applied to principal depending upon management’s judgment.Non-accrual investments are restored to accrual status when past due principal and interest or dividends are paid and, in management’s judgment, principal and interest or dividend payments are likely to remain current. The Company may make exceptions to this treatment if an investment has sufficient collateral value and is in the process of collection. As of JuneSeptember 30, 2019,2023, the Company did not have anyhad certain investments held in 3 portfolio companies onnon-accrual status. status, which represented 3.5% and 2.3% of total investments (excluding investments in money market funds, if any) at amortized cost and at fair value. As of December 31, 2022, the Company had certain investments held in one portfolio company on non-accrual status, which represented 1.5% and 1.3% of total investments (excluding investments in money market funds, if any) at amortized cost and at fair value.
Investments
Investments
The Company carries its investments in accordance with ASC Topic 820,Fair Value Measurements and Disclosures (“ASC 820”), issued by the FASB, which defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. Fair value is generally based on quoted market prices provided by independent pricing services, broker or dealer quotations or alternative price sources. In the absence of quoted market prices, broker or dealer quotations or alternative price sources, investments are measured at fair value as determined by the Investment Adviser, as the valuation designee ("Valuation Designee") designated by the Board of Directors, within the meaning ofpursuant to Rule 2a-5 under the Investment Company Act.
Due to the inherent uncertainties of valuation, certain estimated fair values may differ significantly from the values that would have been realized had a ready market for these investments existed, and these differences could be material. See Note 5 “Fair Value Measurement.”
10
The Company generally invests in illiquid securities, including debt and equity investments, of middle-market companies. The Board of Directors has delegateddesignated to the Investment Adviserday-to-day responsibility responsibilities for implementing and maintaining internal controls and procedures related to the valuation of the Company’s portfolio investments. Under valuation procedures adoptedapproved by the Board of Directors and adopted by the Valuation Designee, market quotations are generally used to assess the value of the investments for which market quotations are readily available.available (as defined in Rule 2a-5). The Investment Adviser obtains these market quotations from independent pricing services orsources. If market quotations are not readily available, the Investment Adviser prices securities at the bid prices obtained from at least two brokers or dealers, if available; otherwise, the Investment Adviser obtains prices from a principal market maker or a primary market dealer. To assess the continuing appropriateness of pricing sources and methodologies, the Investment Adviser regularly performs price verification procedures and issues challenges as necessary to independent pricing servicessources or brokers, and any differences are reviewed in accordance with the valuation procedures. If the Board of Directors or Investment Adviser has a bona fide reason to believeValuation Designee believes any such market quotation does not reflect the fair value of an investment, it may independently value such investment in accordance with valuation procedures for investments for which market quotations are not readily available.
With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, the valuation procedures adoptedapproved by the Board of Directors and adopted by the Valuation Designee, contemplate a multi-step valuation process conducted by the Investment Adviser each quarter and more frequently as needed. As the Valuation Designee, the Investment Adviser is primarily responsible for the valuation of the Company’s assets, subject to the oversight of the Board of Directors, as described below:
27
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Money Market Funds
Investments in money market funds are valued at net asset value (“NAV”) per share. See Note 3 “Significant Agreements and Related Party Transactions.”
Cash
Cash
Cash consists of deposits held at a custodian bank. As of JuneSeptember 30, 2019,2023 and December 31, 2022, the Company held $77,595$10,283 and $36,657 in cash. Foreign currency of $309 and $534 (acquisition cost of $298 and $544) is included in cash as of September 30, 2023 and December 31, 2022.
Foreign Currency Translation
Amounts denominated in foreign currencies are translated into USD on the following basis: (i) investments and other assets and liabilities denominated in foreign currencies are translated into USD based upon currency exchange rates effective on the last business day of the period; and (ii) purchases and sales of investments, borrowings and repayments of such borrowings, income, and expenses denominated in foreign currencies are translated into USD based upon currency exchange rates prevailing on the transaction dates.
11
The Company does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included within the net realized and unrealized gains or losses on investments. Fluctuations arising from the translation ofnon-investment assets and liabilities, if any, are included with the net change in unrealized gains (losses) on foreign currency translations onin the StatementConsolidated Statements of Operations.
Foreign securitysecurities and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices to be more volatile than those of comparable U.S. companies or U.S. government securities.
Income Taxes
The Company recognizes tax positions in its consolidated financial statements only when it is more likely than not that the position will be sustained upon examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized upon settlement. The Company reports any interest expense related to income tax matters in income tax expense and any income tax penalties under expenses in the StatementConsolidated Statements of Operations.
The Company’s tax positions have been reviewed based on applicable statutes of limitation for tax assessments, which may vary by jurisdiction, and based on such review, the Company has concluded that no additional provision for income tax is required in the consolidated financial statements. The Company is subject to potential examination by certain taxing authorities in various jurisdictions. The Company’s tax positions are subject to ongoing interpretation of laws and regulations by taxing authorities.
28
The Company intends to electhas elected to be treated as a RIC commencing with its taxable year ended December 31, 2019. So long as the Company obtains and maintains its statusqualification for tax treatment as a RIC, it will generally not be required to pay corporate-level U.S. federal income tax on any ordinary income or capital gains that it distributes at least annually to its stockholdersUnitholders as dividends. As a result, any U.S. federal income tax liability related to income earned and distributed by the Company represents obligations of the Company’s stockholdersUnitholders and will not be reflected in the consolidated financial statements of the Company.
To qualify for and maintain its tax treatment as a RIC, the Company must meet specifiedsource-of-income and asset diversification requirements and timely distribute to its Unitholders for each taxable year at least 90% of its investment company taxable income (generally, its net ordinary income plus the excess of its realized net short-term capital gains over realized net long-term capital losses, determined without regard to the dividends paid deduction). In order for the Company not to be subject to U.S. federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its net ordinary income (taking into account certain deferrals and elections) for the calendar year, (ii) 98.2% of its capital gains in excess of capital losses for theone-year period ending on October 31 of the calendar year and (iii) any net ordinary income and capital gains in excess of capital losses for preceding years that were not distributed during such years. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% nondeductible U.S. federal excise tax on this income. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to Unitholders. The Company will accrue excise tax on estimated undistributed taxable income as required.
Certain of the Company’s consolidated subsidiaries are subject to U.S. federal and state corporate level income taxes. Income tax expense, if any, is included under the income category for which it applies in the Consolidated Statements of Operations.
Distributions
12
Distributions
Distributions from net investment income and net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined in accordance with GAAP. The Company may pay distributions in excess of its taxable net investment income. This excess would be atax-free return of capital in the period and reduce the Unitholder’s tax basis in its Units. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to common Units accumulated undistributed net investment income or accumulated net realized gain (loss),distributable earnings, as appropriate, in the period that the differences arise. Temporary and permanent differences are primarily attributable to differences in the tax treatment of certain loans and the tax characterization of income andnon-deductible expenses. These differences are generally determined in conjunction with the preparation of the Company’s annual RIC tax return. Distributions to common Unitholders are recorded on theex-dividend record date. The amount to be paid out as a distribution is determined by the Board of Directors each quarter and is generally based upon the earnings estimated by the Investment Adviser. The Company may pay distributions to its Unitholders in a year in excess of its net ordinary income and capital gains for that year and, accordingly, a portion of such distributions may constitute a return of capital for U.S. federal income tax purposes. The Company intends to timely distribute to its Unitholders substantially all of its annual taxable income for each year, except that the Company may retain certain net capital gains for reinvestment and, depending upon the level of the Company’s taxable income earned in a year, the Company may choose to carry forward taxable income for distribution in the following year and pay any applicable tax. The specific tax characteristics of the Company’s distributions will be reported to Unitholders after the end of the calendar year. All distributions will be subject to available funds, and no assurance can be given that the Company will be able to declare such distributions in future periods.
Deferred Financing Costs
Deferred financing costs consist of fees and expenses paid in connection with the closing of, and amendments to, the JPM Revolving Credit Facility and the revolving credit facility (thebetween the Company and MUFG Bank Ltd. (as amended, restated, supplemented or otherwise modified from time to time, the “MUFG Revolving Credit Facility” and together with the JPM Revolving Credit Facility, the “Revolving Credit Facility”Facilities”) dated as of May 7, 2019, with MUFG Union Bank, N.A., as administrative agent and lender.. These costs are amortized using the straight-line method over the respective termterms of the Revolving Credit Facility.Facilities. Deferred financing costs related to the Revolving Credit FacilityFacilities are presented separately as an asset on the Company’s StatementConsolidated Statements of Financial Condition.
Offering Costs
Offering costs consist primarily
29
Organization Costs
3. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS
Organization costs include costs relating to the formation and organization of the Company. These costs are expensed as incurred. Upon the Initial Drawdown Date, Unitholders will bear such cost. Unitholders that make capital commitments after the Initial Drawdown Date will bear a pro rata portion of such cost at the time of their first investment in the Company.
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Investment Advisory Agreement
The Company entered into an investment advisory agreement effective as of February 27, 2019 (the “Investment Advisory Agreement”) with the Investment Adviser, pursuant to which the Investment Adviser manages the Company’s investment program and related activities.
Management Fee
The Company pays the Investment Adviser a management fee (the “Management Fee”), payable quarterly in arrears, equal to 0.375%0.375% (i.e., an annual rate of 1.50%1.50%) of the average of the NAV of the Company (includingun-invested cash and cash equivalents) at the end of the then-current calendar quarter and the prior calendar quarter (and, in the case of the Company’s first quarter, the average of the NAV asof the Company at the end of suchquarter-end quarter and zero). The Management Fee for any partial quarter will be appropriately prorated. The Investment Adviser waives a portion of its management fee payable by the Company in an amount equal to the management fees it earns as an investment adviser for any affiliated money market funds in which the Company invests.
For the period from April 11, 2019 (commencement of operations) to Junethree and nine months ended September 30, 2019,2023, Management Fees amounted to $154.$4,647 and $13,963. As of JuneSeptember 30, 2019, $1542023, $4,647 remained payable.
13
Incentive Fee
Pursuant to the Investment Advisory Agreement, the Company pays to the Investment Adviser an Incentive Feeincentive fee (the “Incentive Fee”) as follows:
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The Incentive Fee is calculated on a cumulative basis and the amount of the Incentive Fee payable prior to a proposed distribution will be determined and, if applicable, paid in accordance with the foregoing formula each time amounts are to be distributed to the Unitholders. The Incentive Fee is a fee owed by the Company to the Investment Adviser and is not paid out of distributions made to Unitholders.
“Contributed Capital” is the aggregate amount of capital contributions that have been made by all Unitholders in respect of their Units to the Company. All distributions (or deemed distributions), including investment income (i.e. proceeds received in respect of interest payments, dividends and fees) and proceeds attributable to the repayment or disposition of any Investment, to Unitholders will be considered a return of Contributed Capital. Unreturned Contributed Capital equals aggregate Contributed Capital minus cumulative distributions, but is never less than zero.
The term “proceeds intended for distribution and Incentive Fee payments” includes proceeds from the full or partial realization of the Company’s Investmentsinvestments and income from investing activities and may include return of capital, ordinary income and capital gains.
If, at the termination of the Company, the Investment Adviser has received aggregate payments of Incentive Fees in excess of the amount the Investment Adviser would have received had the Incentive Fees been determined upon such termination, then the Investment Adviser will reimburse the Company for the difference between the amount of Incentive Fees actually received and the amount determined at termination (the “Investment Adviser Reimbursement Obligation”). However, the Investment Adviser will not be required to reimburse the Company an amount greater than the aggregate Incentive Fees paid to the Investment Adviser, reduced by the excess (if any) of (a) the aggregate federal, state and local income tax liability the Investment Adviser incurred in connection with the payment of such Incentive Fees (assuming the highest marginal applicable federal and New York city and state income tax rates applied to such payments), over (b) an amount equal to the U.S. federal and state tax benefits available to the Investment Adviser by virtue of the payment made by the Investment Adviser pursuant to its Investment Adviser Reimbursement Obligation (assuming that, to the extent such payments are deductible by the Investment Adviser, the benefit of such deductions will be computed using the then highest marginal applicable federal and New York city and state income tax rates).
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If the Investment Advisory Agreement is terminated prior to the termination of the Company (other than the Investment Adviser voluntarily terminating the agreement), the Company will pay to the Investment Adviser a final Incentive Fee payment (the “Final Incentive Fee Payment”). The Final Incentive Fee Payment will be calculated as of the date the Investment Advisory Agreement is terminated and will equal the amount of Incentive Fee that would be payable to the Investment Adviser if (a) all Investmentsinvestments were liquidated for their current value (but without taking into account any unrealized appreciation of any Investment), and any unamortized deferred Investment-related fees would be deemed accelerated, (b) the proceeds from such liquidation were used to pay all of the Company’s outstanding liabilities, and (c) the remainder was distributed to Unitholders and paid as Incentive Fee in accordance with the Incentive Fee waterfall described above for determining the amount of the Incentive Fee, subject to the Incentive Fee Cap. The Company will make the Final Incentive Fee Payment in cash on or immediately following the date the Investment Advisory Agreement is so terminated. The Investment Adviser Reimbursement Obligation will be determined as of the date of the termination of the Investment Advisory Agreement for purposes of the Final Incentive Fee Payment.
For the period from April 11, 2019 (commencement of operations) to Junethree and nine months ended September 30, 2019,2023, the Company accrued unvested Incentive Fees of $0.$4,226 and $13,144. As of JuneSeptember 30, 2019, $02023, $46,255 remained payable in accordance with the terms of the Investment Advisory Agreement.
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Expense Limitation
Pursuant to the Investment Advisory Agreement, Company expenses borne by the Company in the ordinary course on an annual basis (excluding Management Fee, Incentive Fee, organizational andstart-up expenses and leverage-related expenses) will not exceed an amount equal to 0.5%0.5% of the aggregate amount of commitments to the Company by holders of its common Units; provided, however, that expenses incurred outside of the ordinary course, including litigation and similar expenses, are not subject to such cap. For the period from April 11, 2019 (commencement of operations) to Junethree and nine months ended September 30, 2019,2023 and September 30, 2022, there have been no reimbursements from the Investment Adviser pursuant to this provision.
Administration and Custodian Fees
The Company has entered into an administration agreement with State Street Bank and Trust Company (the “Administrator”) under which the Administrator provides various accounting and administrative services to the Company. The Company pays the Administrator fees for its services as it determines areto be commercially reasonable in its sole discretion. The Company also reimburses the Administrator for all reasonable expenses. To the extent that the Administrator outsources any of its functions, the Administrator pays any compensation associated with such functions. The Administrator also serves as the Company’s custodian (the “Custodian”).
For the period from April 11, 2019 (commencement of operations) to Junethree and nine months ended September 30, 2019,2023, the Company incurred expenses for services provided by the Administrator and the Custodian of $78.$414 and $1,239. As of JuneSeptember 30, 2019, $782023, $397 remained payable. For the three and nine months ended September 30, 2022, the Company incurred expenses for services provided by the Administrator and the Custodian of $361 and $1,067.
Transfer Agent Fees
State Street Bank and Trust Company serves as the Company’s transfer agent (“Transfer Agent”), registrar and disbursing agent. For the period from April 11, 2019 (commencement of operations) to Junethree and nine months ended September 30, 2019,2023, the Company incurred expenses for services provided by the Transfer Agent of $29.$38 and $94. As of JuneSeptember 30, 2019, $292023, $31 remained payable. For the three and nine months ended September 30, 2022, the Company incurred expenses for services provided by the Transfer Agent of $35 and $96.
Affiliates
The table below presents the Company’s affiliated investments:
The Company’s
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Goldman Sachs Financial Square Government Fund |
| $ | 122,499 |
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| $ | 481,806 |
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| $ | (450,382 | ) | $ | — |
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| $ | 153,923 |
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| $ | 5,222 |
|
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) |
|
| 10,708 |
|
|
| 1,390 |
|
|
| (74 | ) |
| — |
|
|
| 472 |
|
|
| 12,496 |
|
|
| 936 |
|
MedeAnalytics Inc |
|
| — |
|
|
| 6,075 |
|
|
| — |
|
| — |
|
|
| — |
|
|
| 6,075 |
|
|
| — |
|
Total Non-Controlled Affiliates |
| $ | 133,207 |
|
| $ | 489,271 |
|
| $ | (450,456 | ) | $ | — |
|
| $ | 472 |
|
| $ | 172,494 |
|
| $ | 6,158 |
|
For the Year Ended December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Non-Controlled Affiliates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Goldman Sachs Financial Square Government Fund |
| $ | — |
|
| $ | 803,088 |
|
| $ | (680,589 | ) | $ | — |
|
| $ | — |
|
| $ | 122,499 |
|
| $ | 920 |
|
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) |
|
| — |
|
|
| 10,625 |
|
|
| (49 | ) |
| — |
|
|
| 132 |
|
|
| 10,708 |
|
|
| 493 |
|
Total Non-Controlled Affiliates |
| $ | — |
|
| $ | 813,713 |
|
| $ | (680,638 | ) | $ | — |
|
| $ | 132 |
|
| $ | 133,207 |
|
| $ | 1,413 |
|
31
Due to June 30, 2019 were as follows:Affiliates
Fair Value as of April 11, 2019 (commencement of operations) | Gross Additions(2) | Gross Reductions(3) | Net realized gain (loss) | Net change in unrealized | Fair Value as of June 30, 2019 | Dividend, Interest and Other Income | ||||||||||||||||||||||
Non-Controlled Affiliates | ||||||||||||||||||||||||||||
Goldman Sachs Financial Square Government Fund(1) | $ | – | $ | 59,786 | $ | (59,127 | ) | $ | – | $ | – | $ | 659 | $ | 50 | |||||||||||||
TotalNon-Controlled Affiliates | $ | – | $ | 59,786 | $ | (59,127 | ) | $ | – | $ | – | $ | 659 | $ | 50 |
|
|
|
Due To Affiliates
The Investment Adviser pays certain general and administrative expenses, including legal expenses on behalf of the Company in the ordinary course of business. As of JuneSeptember 30, 2019,2023 and December 31, 2022, there were $4$460 and $206 included within Accrued expenses and other liabilities $1,004 included within Accrued offering costs, $202 included within Interest and other debt expenses payable and $147 included within Accrued organization coststhat were paid by the Investment Adviser and its affiliates on behalf of the Company.
Co-investmentCo-Investment Activity
In certain circumstances, negotiatedco-investments by the Company and other funds managed by the Investment Adviser may be made onlycan make negotiated co-investments pursuant to an order from the SEC permitting the Companyit to do so. On January 4, 2017,November 16, 2022, the SEC granted exemptive relief (“Exemptive Relief”) that permitsto the Company toco-invest with Goldman Sachs BDC, Inc. (“GS BDC”), Goldman Sachs Private Middle Market Credit LLC (“GS PMMC”), Goldman Sachs Middle Market Lending Corp. (“GS MMLC”)Investment Adviser, the BDCs advised by the Investment Adviser and certain other funds that may beaffiliated applicants exemptive relief on which the Company expects to rely to co-invest alongside certain other client accounts managed by GSAM, including the GSAM Credit Alternatives Team, afterInvestment Adviser (collectively with the dateCompany, the “Accounts”), which may include proprietary accounts of the exemptive order, subject to certain conditions including thatco-investments are madeGoldman Sachs, in a manner consistent with the Company’s investment objectives positions, policies,and strategies, certain Board-established criteria, the conditions of such exemptive relief and restrictions,other pertinent factors (the “Relief”). Additionally, if the Investment Adviser forms other funds in the future, the Company may co-invest alongside such other affiliates, subject to compliance with the Relief, applicable regulations and regulatory guidance, as well as regulatory requirementsapplicable allocation procedures. As a result of the Relief, there could be significant overlap in the Company’s investment portfolio and pursuant to the conditions required by the Exemptive Relief, and are allocated fairly among participants.investment portfolios of other Accounts, including, in some cases, proprietary accounts of Goldman Sachs. The GSAMGoldman Sachs Asset Management Private Credit Alternatives Team is comprisedcomposed of investment professionals dedicated to the Company’s investment strategy and to other funds that share a similar investment strategy with the Company, who areCompany. The Goldman Sachs Asset Management Private Credit Team is responsible for identifying investment opportunities, conducting research and due diligence on prospective investments, negotiating and structuring the Company’s investments and monitoring and servicing the Company’s investments,investments. The team works together with investment professionals who are primarily focused on investment strategies in syndicated, liquid credit. Under the terms of the Exemptive Relief, a “required majority” (as defined in Section 57(o) of the Investment Company Act) of the Company’s independent directors must make certain conclusions in connection with aco-investment transaction, including that (1) the terms of the proposed transaction are reasonable and fair to the Company and the Company’s stockholdersUnitholders and do not involve overreaching in respect of the Company or its stockholdersUnitholders on the part of any person concerned, and (2) the transaction is consistent with the interests of the Company’s stockholdersUnitholders and is consistent with the then-current investment objectives and strategies of the Company. As a result of
In addition, the ExemptiveCompany has filed an application to amend the Relief there could be significant overlapto permit the Company to participate in follow-on investments in the Company’s investmentexisting portfolio and the investment portfolios of GS BDC, GS PMMC, GS MMLC and/or other funds establishedcompanies with certain affiliates covered by the GSAM Credit Alternatives TeamRelief if such affiliates, that could avail themselves ofare not BDCs or registered investment companies, did not have an investment in such existing portfolio company. There can be no assurance if and when the Exemptive Relief.Company will receive the amended exemptive order.
4. INVESTMENTS
15
|
As of the dates indicated, theThe Company’s investments (excluding an investmentinvestments in a money market fund managed by an affiliate of Group Inc. of $659)funds, if any) consisted of the following:
June 30, 2019 |
| September 30, 2023 |
|
| December 31, 2022 |
| ||||||||||||||||||
Investment Type | Cost | Fair Value |
| Cost |
|
| Fair Value |
|
| Cost |
|
| Fair Value |
| ||||||||||
1st Lien/Senior Secured Debt | $ | 85,433 | $ | 85,368 |
| $ | 2,580,211 |
|
| $ | 2,504,305 |
|
| $ | 2,610,793 |
|
| $ | 2,561,708 |
| ||||
Total Investments | $ | 85,433 | $ | 85,368 | ||||||||||||||||||||
1st Lien/Last-Out Unitranche |
|
| 20,086 |
|
|
| 19,864 |
|
|
| 18,410 |
|
|
| 18,243 |
| ||||||||
2nd Lien/Senior Secured Debt |
|
| — |
|
|
| — |
|
|
| 15,384 |
|
|
| 9,246 |
| ||||||||
Unsecured Debt |
|
| 6,571 |
|
|
| 6,566 |
|
|
| 5,590 |
|
|
| 5,552 |
| ||||||||
Preferred Stock |
|
| 37,905 |
|
|
| 47,362 |
|
|
| 39,730 |
|
|
| 40,994 |
| ||||||||
Common Stock |
|
| 10,996 |
|
|
| 15,828 |
|
|
| 10,996 |
|
|
| 11,903 |
| ||||||||
Warrants |
|
| 1,666 |
|
|
| 295 |
|
|
| 1,666 |
|
|
| 551 |
| ||||||||
Total investments |
| $ | 2,657,435 |
|
| $ | 2,594,220 |
|
| $ | 2,702,569 |
|
| $ | 2,648,197 |
|
As
32
Table of the dates indicated, theContents
The industry composition of the Company’s portfolio atinvestments as a percentage of fair value and net assets was as follows:
June 30, 2019 |
| September 30, 2023 |
|
| December 31, 2022 |
| ||||||||||||||||||
Industry | Fair Value | Net Assets |
| Fair Value |
|
| Net Assets |
|
| Fair Value |
|
| Net Assets |
| ||||||||||
Real Estate Management & Development | 39.0 | % | 39.7 | % | ||||||||||||||||||||
Media | 33.0 | 33.7 | ||||||||||||||||||||||
Health Care Providers & Services |
|
| 17.5 | % |
|
| 36.5 | % |
|
| 16.1 | % |
|
| 34.4 | % | ||||||||
Software |
|
| 16.5 |
|
|
| 34.6 |
|
|
| 16.3 |
|
|
| 34.6 |
| ||||||||
Diversified Financial Services |
|
| 11.1 |
|
|
| 23.3 |
|
|
| 10.6 |
|
|
| 22.7 |
| ||||||||
Professional Services |
|
| 10.8 |
|
|
| 22.6 |
|
|
| 10.5 |
|
|
| 22.3 |
| ||||||||
Health Care Technology |
|
| 9.3 |
|
|
| 19.5 |
|
|
| 12.0 |
|
|
| 25.5 |
| ||||||||
Real Estate Mgmt. & Development |
|
| 6.9 |
|
|
| 14.4 |
|
|
| 6.5 |
|
|
| 13.8 |
| ||||||||
Diversified Consumer Services |
|
| 5.7 |
|
|
| 12.0 |
|
|
| 5.5 |
|
|
| 11.8 |
| ||||||||
IT Services |
|
| 3.2 |
|
|
| 6.7 |
|
|
| 4.1 |
|
|
| 8.7 |
| ||||||||
Commercial Services & Supplies |
|
| 2.9 |
|
|
| 6.1 |
|
|
| 3.3 |
|
|
| 7.0 |
| ||||||||
Health Care Equipment & Supplies | 11.5 | 11.7 |
|
| 2.5 |
|
|
| 5.2 |
|
|
| 2.4 |
|
|
| 5.1 |
| ||||||
Diversified Consumer Services | 8.5 | 8.7 | ||||||||||||||||||||||
Road & Rail | 8.0 | 8.2 | ||||||||||||||||||||||
Entertainment |
|
| 1.8 |
|
|
| 3.7 |
|
|
| 1.7 |
|
|
| 3.7 |
| ||||||||
Construction & Engineering |
|
| 1.7 |
|
|
| 3.6 |
|
|
| 1.5 |
|
|
| 3.3 |
| ||||||||
Aerospace & Defense |
|
| 1.7 |
|
|
| 3.5 |
|
|
| 1.5 |
|
|
| 3.3 |
| ||||||||
Independent Power and Renewable Electricity Producers |
|
| 1.6 |
|
|
| 3.3 |
|
|
| 1.4 |
|
|
| 3.0 |
| ||||||||
Transportation Infrastructure |
|
| 1.4 |
|
|
| 3.0 |
|
|
| 1.4 |
|
|
| 3.0 |
| ||||||||
Hotels, Restaurants & Leisure |
|
| 1.2 |
|
|
| 2.6 |
|
|
| 1.2 |
|
|
| 2.6 |
| ||||||||
Insurance |
|
| 1.0 |
|
|
| 2.1 |
|
|
| 0.7 |
|
|
| 1.5 |
| ||||||||
Trading Companies & Distributors |
|
| 1.0 |
|
|
| 2.0 |
|
|
| 0.9 |
|
|
| 2.0 |
| ||||||||
Internet & Direct Marketing Retail |
|
| 0.8 |
|
|
| 1.7 |
|
|
| 1.2 |
|
|
| 2.6 |
| ||||||||
Chemicals |
|
| 0.8 |
|
|
| 1.7 |
|
|
| 0.6 |
|
|
| 1.2 |
| ||||||||
Pharmaceuticals |
|
| 0.6 |
|
|
| 1.2 |
|
|
| 0.6 |
|
|
| 1.3 |
| ||||||||
Total | 100.0 | % | 102.0 | % |
|
| 100.0 | % |
|
| 209.3 | % |
|
| 100.0 | % |
|
| 213.4 | % |
As of the dates indicated, the
The geographic composition of the Company’s portfolioinvestments at fair value was as follows:
|
Geographic |
| September 30, 2023 |
|
| December 31, 2022 |
| ||
United States |
|
| 96.7 | % |
|
| 97.0 | % |
Canada |
|
| 2.3 |
|
|
| 2.2 |
|
United Kingdom |
|
| 1.0 |
|
|
| 0.8 |
|
Total |
|
| 100.0 | % |
|
| 100.0 | % |
|
33
5. FAIR VALUE MEASUREMENT
The fair value of a financial instrument is the amount that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price).
The fair value hierarchy under ASC 820 prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The levels used for classifying investments are not necessarily an indication of the risk associated with investing in these securities. The three levels of the fair value hierarchy are as follows:
Basis of Fair Value Measurement
Level 1 – Inputs to the valuation methodology are quoted prices available in active markets for identical instruments as of the reporting date. The types of financial instruments included in Level 1 include unrestricted securities, including equities and derivatives, listed in active markets.
Level 2 – Inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date. The types of financial instruments in this category include less liquid and restricted securities listed in active markets, securities traded in other than active markets, government and agency securities and certainover-the-counter derivatives where the fair value is based on observable inputs.
16
Level 3 – Inputs to the valuation methodology are unobservable and significant to overall fair value measurement. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category include investments in privately held entities and certainover-the-counter derivatives where the fair value is based on unobservable inputs.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Note 2 “Significant Accounting Policies” should be read in conjunction with the information outlined below.
34
The table below presents the valuation techniques and the nature of significant inputs generally used in determining the fair value of Level 2 and Level 3 Instruments.
Level 2 Instruments | Valuation Techniques and Significant Inputs | |
Equity and Fixed Income | The types of instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency include commercial paper, most government agency obligations, most corporate debt securities, certain mortgage-backed securities, certain bank loans, less liquid publicly listed equities, certain state and municipal obligations, certain money market instruments and certain loan commitments. Valuations of Level 2 Equity and Fixed Income instruments can be verified to quoted prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. Consideration is given to the nature of the quotations (e.g. indicative or firm) and the relationship of recent market activity to the prices provided from alternative pricing sources. | |
Derivative Contracts |
|
The table below presents the valuation techniques and the nature of significant inputs generally used in determining the fair value of Level 3 Instruments.
Level 3 Instruments | Valuation Techniques and Significant Inputs | |
Bank Loans, Corporate Debt, and Other Debt Obligations | Valuations are generally based on discounted cash flow techniques, for which the significant inputs are the amount and timing of expected future cash flows, market yields and recovery assumptions. The significant inputs are generally determined based on relative value analyses, which incorporate comparisons both to credit default swaps that reference the same underlying credit risk and to other debt instruments for the same issuer for which observable prices or broker quotes are available. Other valuation methodologies are used as appropriate including market comparables, transactions in similar instruments and recovery/liquidation analysis. | |
Equity | Recent third-party investments or pending transactions are considered to be the best evidence for any change in fair value. When these are not available, the following valuation methodologies are used, as appropriate and available:
Evidence includes recent or pending reorganizations (for example, merger proposals, tender offers and debt restructurings) and significant changes in financial metrics, including:
|
35
The tabletables below presentspresent the ranges of significant unobservable inputs used to value the Company’s Level 3 assets and liabilities as of JuneSeptember 30, 2019.2023 and December 31, 2022. These ranges represent the significant unobservable inputs that were used in the valuation of each type of instrument, but they do not represent a range of values for any one instrument. For example, the lowest yielddiscount rate in 1st Lien/Senior Secured Debt is appropriate for valuing that specific debt investment but may not be appropriate for valuing any other debt investments in this asset class. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 assets and liabilities.
assets.
|
| |||||
|
Level 3 Instruments | Fair |
| Valuation | Significant | Range(4) of Significant | Weighted | |
As of September 30, 2023 |
|
|
|
|
|
| |
Bank Loans, Corporate Debt, and Other Debt Obligations | |||||||
1st Lien/Senior Secured | $ | 2,298,108 |
| Discounted cash flows | Discount Rate | 9.3% - 22.4% | 11.4% |
| $ | 59,851 |
| Comparable multiples | EV/Revenue | 0.4x - 2.7x | 1.7x |
1st Lien/Last-Out Unitranche | $ | 19,864 |
| Discounted cash flows | Discount Rate | — | 12.1% |
Unsecured Debt | $ | 6,566 |
| Discounted cash flows | Discount Rate | — | 17.2% |
Equity |
|
|
|
|
|
| |
Preferred Stock | $ | 25,419 |
| Comparable multiples | EV/EBITDA(6) | 13.7x - 34.5x | 31.0x |
| $ | 21,943 |
| Comparable multiples | EV/Revenue | 4.1x - 4.2x | 4.1x |
Common Stock | $ | 12,461 |
| Comparable multiples | EV/EBITDA(6) | 9.3x - 18.6x | 14.9x |
| $ | 3,367 |
| Comparable multiples | EV/Revenue | — | 14.8x |
Warrants | $ | 295 |
| Comparable multiples | EV/Revenue | — | 4.2x |
As of December 31, 2022 |
|
|
|
|
|
| |
Bank Loans, Corporate Debt, and Other Debt Obligations | |||||||
1st Lien/Senior Secured | $ | 2,389,612 |
| Discounted cash flows | Discount Rate | 7.8% - 19.7% | 10.9% |
| $ | 34,552 |
| Comparable multiples | EV/Revenue | — | 2.3x |
1st Lien/Last-Out Unitranche | $ | 18,243 |
| Discounted cash flows | Discount Rate | — | 10.9% |
Unsecured Debt | $ | 5,552 |
| Discounted cash flows | Discount Rate | — | 17.3% |
Equity |
|
|
|
|
|
| |
Preferred Stock | $ | 19,198 |
| Comparable multiples | EV/EBITDA(6) | 14.4x - 29.7x | 27.1x |
| $ | 21,796 |
| Comparable multiples | EV/Revenue | 4.0x - 7.3x | 4.6x |
Common Stock | $ | 9,138 |
| Comparable multiples | EV/EBITDA(6) | 9.1x - 18.3x | 13.9x |
| $ | 2,765 |
| Comparable multiples | EV/Revenue | — | 15.2x |
Warrants | $ | 551 |
| Comparable multiples | EV/Revenue | — | 4.0x |
|
|
|
|
As noted above, the income and market approaches were used in the determination of fair value of certain Level 3 assets as of JuneSeptember 30, 2019.2023 and December 31, 2022. The significant unobservable inputs used in the income approach are the discount rate or market yield used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. An increase in the discount rate or market yield would result in a decrease in the fair value. Included in the consideration and selection of discount rates or market yields is risk of default, rating of the investment, call provisions and comparable company investments. The significant unobservable inputs used in the market approach are based on market comparable transactions and market multiples of publicly traded comparable companies. Increases or decreases in market comparable transactions or market multiples would result in an increase or decrease respectively, in the fair value.
1736
The following is a summary of the Company’s assets categorized within the fair value hierarchy ashierarchy:
|
| September 30, 2023 |
|
| December 31, 2022 |
| ||||||||||||||||||||||||||
Assets |
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
| ||||||||
1st Lien/Senior Secured Debt |
| $ | — |
|
| $ | 88,844 |
|
| $ | 2,415,461 |
|
| $ | 2,504,305 |
|
| $ | — |
|
| $ | 60,031 |
|
| $ | 2,501,677 |
|
| $ | 2,561,708 |
|
1st Lien/Last-Out Unitranche |
|
| — |
|
|
| — |
|
|
| 19,864 |
|
|
| 19,864 |
|
|
| — |
|
|
| — |
|
|
| 18,243 |
|
|
| 18,243 |
|
2nd Lien/Senior Secured Debt |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 9,246 |
|
|
| — |
|
|
| 9,246 |
|
Unsecured Debt |
|
| — |
|
|
| — |
|
|
| 6,566 |
|
|
| 6,566 |
|
|
| — |
|
|
| — |
|
|
| 5,552 |
|
|
| 5,552 |
|
Preferred Stock |
|
| — |
|
|
| — |
|
|
| 47,362 |
|
|
| 47,362 |
|
|
| — |
|
|
| — |
|
|
| 40,994 |
|
|
| 40,994 |
|
Common Stock |
|
| — |
|
|
| — |
|
|
| 15,828 |
|
|
| 15,828 |
|
|
| — |
|
|
| — |
|
|
| 11,903 |
|
|
| 11,903 |
|
Warrants |
|
| — |
|
|
| — |
|
|
| 295 |
|
|
| 295 |
|
|
| — |
|
|
| — |
|
|
| 551 |
|
|
| 551 |
|
Investments in Affiliated Money Market Fund |
|
| 153,923 |
|
|
| — |
|
|
| — |
|
|
| 153,923 |
|
|
| 122,499 |
|
|
| — |
|
|
| — |
|
|
| 122,499 |
|
Total |
| $ | 153,923 |
|
| $ | 88,844 |
|
| $ | 2,505,376 |
|
| $ | 2,748,143 |
|
| $ | 122,499 |
|
| $ | 69,277 |
|
| $ | 2,578,920 |
|
| $ | 2,770,696 |
|
The below table presents a summary of June 30, 2019:
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
1st Lien/Senior Secured Debt | $ | – | $ | – | $ | 85,368 | $ | 85,368 | ||||||||
Affiliated Money Market Fund | 659 | – | – | 659 | ||||||||||||
Total assets | $ | 659 | $ | – | $ | 85,368 | $ | 86,027 |
The following is a reconciliationchanges in fair value of Level 3 assets forby investment type:
Assets |
| Beginning |
|
| Purchases(1) |
|
| Net |
|
| Net Change in |
|
| Sales and |
|
| Net |
|
| Transfers |
|
| Transfers |
|
| Ending Balance |
|
| Net Change in |
| ||||||||||
For the Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
1st Lien/Senior Secured Debt |
| $ | 2,501,677 |
|
| $ | 167,943 |
|
| $ | (35,458 | ) |
| $ | (28,420 | ) |
| $ | (174,546 | ) |
| $ | 8,769 |
|
| $ | — |
|
| $ | (24,504 | ) |
| $ | 2,415,461 |
|
| $ | (36,375 | ) |
1st Lien/Last-Out Unitranche |
|
| 18,243 |
|
|
| 1,621 |
|
|
| — |
|
|
| (55 | ) |
|
| — |
|
|
| 55 |
|
|
| — |
|
|
| — |
|
|
| 19,864 |
|
|
| (55 | ) |
2nd Lien/Senior Secured Debt |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Unsecured Debt |
|
| 5,552 |
|
|
| 981 |
|
|
| — |
|
|
| 33 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 6,566 |
|
|
| 33 |
|
Preferred Stock |
|
| 40,994 |
|
|
| — |
|
|
| (1,825 | ) |
|
| 8,193 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 47,362 |
|
|
| 6,368 |
|
Common Stock |
|
| 11,903 |
|
|
| — |
|
|
| — |
|
|
| 3,925 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 15,828 |
|
|
| 3,925 |
|
Warrants |
|
| 551 |
|
|
| — |
|
|
| — |
|
|
| (256 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 295 |
|
|
| (256 | ) |
Total assets |
| $ | 2,578,920 |
|
| $ | 170,545 |
|
| $ | (37,283 | ) |
| $ | (16,580 | ) |
| $ | (174,546 | ) |
| $ | 8,824 |
|
| $ | — |
|
| $ | (24,504 | ) |
| $ | 2,505,376 |
|
| $ | (26,360 | ) |
For the Nine Months Ended September 30, 2022 |
| |||||||||||||||||||||||||||||||||||||||
1st Lien/Senior |
| $ | 2,183,501 |
|
| $ | 643,017 |
|
| $ | (5,326 | ) |
| $ | (27,759 | ) |
| $ | (222,152 | ) |
| $ | 8,994 |
|
| $ | — |
|
| $ | — |
|
| $ | 2,580,275 |
|
| $ | (33,780 | ) |
1st Lien/Last-Out Unitranche |
|
| — |
|
|
| 17,400 |
|
|
| — |
|
|
| 109 |
|
|
| — |
|
|
| 12 |
|
|
| — |
|
|
| — |
|
|
| 17,521 |
|
|
| 109 |
|
2nd Lien/Senior Secured Debt |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (2,266 | ) |
|
| — |
|
|
| 6 |
|
|
| 14,588 |
|
|
| — |
|
|
| 12,328 |
|
|
| (2,266 | ) |
Unsecured Debt |
|
| — |
|
|
| 5,580 |
|
|
| — |
|
|
| (4 | ) |
|
| — |
|
|
| 5 |
|
|
| — |
|
|
| — |
|
|
| 5,581 |
|
|
| (4 | ) |
Preferred Stock |
|
| 40,782 |
|
|
| — |
|
|
| — |
|
|
| (2,181 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 38,601 |
|
|
| (2,181 | ) |
Common Stock |
|
| 10,343 |
|
|
| 2,452 |
|
|
| — |
|
|
| (1,308 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,487 |
|
|
| (1,308 | ) |
Warrants |
|
| 1,667 |
|
|
| — |
|
|
| — |
|
|
| (1,246 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 421 |
|
|
| (1,246 | ) |
Total assets |
| $ | 2,236,293 |
|
| $ | 668,449 |
|
| $ | (5,326 | ) |
| $ | (34,655 | ) |
| $ | (222,152 | ) |
| $ | 9,017 |
|
| $ | 14,588 |
|
| $ | — |
|
| $ | 2,666,214 |
|
| $ | (40,676 | ) |
Level 3 | Beginning Balance as of April 11, 2019 (commencement | Purchases(1) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation)(2) | Sales and Settlements(1) | Net Amortization of Premium/ Discount | Transfers In | Transfers Out | Ending Balance as of June 30, 2019 | |||||||||||||||||||||||||||
1st Lien/Senior Secured Debt | $ | – | $ | 89,377 | $ | – | $ | (65) | $ | (3,958 | ) | $ | 14 | $ | – | $ | – | $ | 85,368 | |||||||||||||||||
Total assets | $ | – | $ | 89,377 | $ | – | $ | (65) | $ | (3,958 | ) | $ | 14 | $ | – | $ | – | $ | 85,368 |
|
|
For the period from April 11, 2019 (commencement of operations) to June 30, 2019, there were no transfers between levels of the fair value hierarchy.
Debt Not Carried at Fair Value
The fair value of the Company’s debt, which would have been categorized as Level 3 within the fair value hierarchy as of JuneSeptember 30, 2019,2023 and December 31, 2022, approximates its carrying value.value because the Revolving Credit Facilities have variable interest based on selected short-term rates.
|
37
6. DEBT
On May 2, 2019, the Initial Member approved the application of the reduced asset coverage requirements in Section 61(a)(2) of the Investment Company Act to the Company and such election became effective the following day. As a result of this approval, the Company is currently allowed to borrow amounts such that its asset coverage ratio, as defined in the Investment Company Act, is at least 150%150% after such borrowing (if certain requirements are met). As of JuneSeptember 30, 2019,2023 and December 31, 2022, the Company’s asset coverage ratio based on the aggregate amount outstanding of senior securities was 203%185% and 185%.
The Company’s outstanding debt as of June 30, 2019 was as follows:
June 30, 2019 | ||||||||||||
Aggregate Borrowing Amount Committed | Amount Available | Carrying Value | ||||||||||
Revolving Credit Facility(1) | $ | 175,000 | $ | 94,100 | $ | 80,900 | ||||||
Total Debt | $ | 175,000 | $ | 94,100 | $ | 80,900 |
|
| September 30, 2023 |
|
| December 31, 2022 |
| ||||||||||||||||||
|
| Aggregate |
|
| Amount |
|
| Carrying |
|
| Aggregate |
|
| Amount |
|
| Carrying |
| ||||||
MUFG Revolving Credit Facility(1) |
| $ | 50,050 |
|
| $ | 50,050 |
|
| $ | — |
|
| $ | 91,000 |
|
|
| 91,000 |
|
| $ | — |
|
JPM Revolving Credit Facility(2) |
|
| 1,650,000 |
|
|
| 184,721 |
|
|
| 1,465,376 |
|
|
| 1,650,000 |
|
|
| 184,721 |
|
|
| 1,465,196 |
|
Total debt |
| $ | 1,700,050 |
|
| $ | 234,771 |
|
| $ | 1,465,376 |
|
| $ | 1,741,000 |
|
| $ | 275,721 |
|
| $ | 1,465,196 |
|
|
The combined weighted average interest rate of the aggregate borrowings outstanding for the nine months ended September 30, 2023 was 7.88% and the year ended December 31, 2022 was 4.57%. The combined weighted average debt of the aggregate borrowings outstanding for the nine months ended September 30, 2023 was $1,496,718 and the year ended December 31, 2022 was $1,529,965.
18
MUFG Revolving Credit Facility
The Company entered into athe MUFG Revolving Credit Facility on May 7, 2019 with MUFG Union Bank N.A.Ltd., as administrative agent (the “Administrative Agent”), lead arranger, letter of credit issuer and lender. The Company amended the MUFG Revolving Credit Facility on numerous occasions between July 31, 2019 and May 4, 2023.
Subject to availability under the “Borrowing Base,” the maximum principal amount of the MUFG Revolving Credit Facility was $175,000$50,050 as of JuneSeptember 30, 2019.2023. The Borrowing Base is calculated based on the unfunded capital commitments of the investors meeting various eligibility requirements (subject to investor concentration limits) multiplied by specified advance rates. The Company has the ability to increase the maximum principal amount of the Revolving Credit Facility up to $500,000, subject to increasing commitments of existing lenders and/or obtaining commitments of new lenders and certain other conditions. The stated maturity date of the MUFG Revolving Credit Facility is May 7, 2021.November 3, 2023, which may be extended by the Company exercising its committed 6-month extension option. Subsequent to the three months ended September 30, 2023, the Company exercised the option to extend the maturity of the MUFG Revolving Credit Facility. See Note 11 “Subsequent Events.”
Proceeds from the MUFG Revolving Credit Facility may be used for investments, working capital, expenses and general corporate purposes (including to pay dividends or distributions).
Under the MUFG Revolving Credit Facility, the Company has the ability to elect, for loans denominated in U.S. Dollars, either LIBORTerm SOFR with a one-, three- or, if available, six-month tenor or the alternative base rate at the time of draw-down (and with respect to loans denominated in non-U.S. Dollar currencies, the applicable benchmark specified in the MUFG Revolving Credit Facility), and loans denominated in U.S. Dollars may be converted from one rate to another at any time, subject to certain conditions. InterestThe interest rate on obligations under the MUFG Revolving Credit Facility is (A) Term Loan plus a credit adjustment spread for the prevailing LIBOR for one month (the “Applicable LIBOR”)applicable tenor (or other listed offered rate, depending upon the currency of borrowing) plus 2.15%2.75% per annum or (B) an alternatealternative base rate (the greater(the greatest of the prime rate of such commercial bank,set by MUFG Bank, Ltd., the federal funds rate plus 0.50%0.50%, and LIBORTerm SOFR with a one-month tenor plus 1.00%) (“ABR”)) plus 1.15%1.75% per annum. The Company pays a 0.25%0.35% annualized fee on a quarterly basis on committed but undrawn amounts under the MUFG Revolving Credit Facility.
Amounts drawn under the MUFG Revolving Credit Facility may be prepaid at any time without premium or penalty, subject to applicable breakage costs. Loans are subject to mandatory prepayment for amounts exceeding the Borrowing Base or the lenders’ aggregate commitment and to the extent required to comply with the Investment Company Act, as applied to BDCs. Transfers of interests in the Company by investors are subject to certain restrictions under the MUFG Revolving Credit Facility. In addition, any transfer of Units from a Unitholder whose undrawn commitments are included in the Borrowing Base to a Unitholder that is not eligible to be included in the Borrowing Base (or that is eligible to be included in the Borrowing Base at a lower advance rate) may trigger mandatory prepayment obligations.
38
The MUFG Revolving Credit Facility is secured by a perfected first priority security interest in the unfunded capital commitments of the Company’s investors (with certain exceptions) and the proceeds thereof, including an assignment of the right to make capital calls, receive and apply capital contributions, and enforce remedies and claims related thereto, and a pledge of the collateral account into which capital call proceeds are deposited. Additionally, under the MUFG Revolving Credit Facility, in certain circumstances after an event of default, the Administrative Agent will be able to require investors to fund their capital commitments directly to the Administrative Agent for the purposes of repaying the loans, but lenders cannot seek recourse against a Unitholder in excess of such Unitholder’s obligation to contribute capital to the Company.
The MUFG Revolving Credit Facility contains customary representations, warranties, and affirmative and negative covenants, including without limitation, representations and covenants regarding treatment as a RIC under the Code and as a BDC under the Investment Company Act and restrictions on the Company’s ability to make certain distributions, to incur additional indebtedness, to incur any liens on the collateral and to permit certain transfers of Unitholders’ ownership interest in the Units. The MUFG Revolving Credit Facility includes customary conditions precedent to the draw-down of loans and customary events of default. TheAs of September 30, 2023, the Company iswas in compliance with these covenants.
AsCosts of June 30, 2019, costs of $1,220$5,970 were incurred in connection with obtaining and amending the MUFG Revolving Credit Facility and exercising its right under the accordion feature, which have been recorded as deferred financing costs onin the StatementConsolidated Statements of Financial Condition and are being amortized over the life of the MUFG Revolving Credit Facility using the straight-line method. As of JuneSeptember 30, 2019,2023 and December 31, 2022, outstanding deferred financing costs were $1,151.
19
The below table presents the summary information of the MUFG Revolving Credit Facility:
|
| For the Three Months Ended |
| For the Nine Months Ended |
| ||||||||||||
|
| September 30, 2023 |
|
| September 30, 2022 |
|
|
| September 30, 2023 |
|
| September 30, 2022 |
| ||||
Borrowing interest expense |
| $ | 470 |
|
| $ | 2,007 |
|
|
| $ | 1,765 |
|
| $ | 6,126 |
|
Facility fees |
|
| 31 |
|
|
| 9 |
|
|
|
| 136 |
|
|
| 13 |
|
Amortization of financing costs |
|
| 209 |
|
|
| 198 |
|
|
|
| 598 |
|
|
| 760 |
|
Total |
| $ | 710 |
|
| $ | 2,214 |
|
|
| $ | 2,499 |
|
| $ | 6,899 |
|
Weighted average interest rate |
|
| 8.19 | % |
|
| 4.51 | % |
|
|
| 7.62 | % |
|
| 3.30 | % |
Average outstanding balance |
| $ | 22,761 |
|
| $ | 176,446 |
|
|
| $ | 30,963 |
|
| $ | 248,513 |
|
JPM Revolving Credit Facility
On September 24, 2020, SPV entered into the JPM Revolving Credit Facility. JPMorgan Chase Bank, National Association (“JPM”) serves as administrative agent, U.S. Bank Trust Company, National Association serves as collateral agent and collateral administrator, U.S. Bank National Association serves as securities intermediary and the Company serves as portfolio manager under the JPM Revolving Credit Facility. The Company amended the JPM Revolving Credit Facility on numerous occasions between February 12, 2021 and September 14, 2023.
Borrowings under the JPM Revolving Credit Facility bear interest (at SPV’s election) at a per annum rate equal to (x) Term SOFR (or the applicable benchmark for loans denominated in non-U.S. Dollar currencies) plus a credit spread adjustment of 0.15% (or other listed offered rate, depending upon the currency of borrowing) in effect and, (y) to the extent Term SOFR is unavailable, a rate per annum equal to the greater of (i) the prime rate of JPM in effect on such day and (ii) the Federal Funds Effective Rate in effect on such day plus 0.50%, in each case, plus the applicable margin. The applicable margin is 2.55% per annum, after giving effect to the amendment dated September 14, 2023. SPV will also pay a commitment fee of 0.55% per annum on the average daily unused amount of the financing commitments until the last day of the reinvestment period from April 11, 2019 (commencement(as defined in the JPM Revolving Credit Facility), and an administrative fee of operations) to June 30, 20190.20% per annum on the total commitment. The JPM Revolving Credit Facility is as follows:
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 | ||||
Borrowing Interest Expense | $ | 137 | ||
Facility fees | 42 | |||
Amortization of financing costs | 69 | |||
Total | $ | 248 | ||
Weighted average interest rate | 4.66% | * | ||
Average outstanding balance | $ | 19,429 | * |
|
|
Capital Commitments
a multicurrency facility. As of September 30, 2023, the dates indicated,total commitments under the JPM Revolving Credit Facility were $1,650,000. The JPM Revolving Credit Facility also has an accordion feature, subject to the satisfaction of various conditions, which could bring total commitments under the JPM Revolving Credit Facility to $2,000,000. All amounts outstanding under the JPM Revolving Credit Facility must be repaid by the sixth anniversary of the JPM Revolving Credit Facility, subject to a six-month extension of the maturity date with the consent of the administrative agent at such time.
SPV’s obligations to the lenders under the JPM Revolving Credit Facility are secured by a first priority security interest in all of SPV’s portfolio of investments and cash. The obligations of SPV under the JPM Revolving Credit Facility are non-recourse to the Company, and the Company’s exposure under the JPM Revolving Credit Facility is limited to the value of the Company’s investment in SPV.
In connection with the JPM Revolving Credit Facility, SPV has made certain customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. The JPM Revolving Credit Facility contains customary events of default for similar financing transactions, including if a change of control of SPV occurs or if the Company is no longer the portfolio manager of SPV. Upon the occurrence and during the continuation of an event of default, JPM may declare the outstanding advances and all other obligations under the JPM Revolving Credit Facility immediately due and payable. As of September 30, 2023, the Company was in compliance with these covenants.
39
Costs of $14,922 were incurred in connection with obtaining the JPM Revolving Credit Facility, which have been recorded as deferred financing costs in the Consolidated Statements of Financial Condition and are being amortized over the life of the JPM Revolving Credit Facility using the straight-line method. As of September 30, 2023 and December 31, 2022, outstanding deferred financing costs were $9,151 and $6,952.
The below table presents the summary information of the JPM Revolving Credit Facility:
|
| For the Three Months Ended |
| For the Nine Months Ended |
| ||||||||||||
|
| September 30, 2023 |
|
| September 30, 2022 |
|
|
| September 30, 2023 |
|
| September 30, 2022 |
| ||||
Borrowing interest expense |
| $ | 31,408 |
|
| $ | 18,408 |
|
|
| $ | 86,475 |
|
| $ | 38,748 |
|
Facility fees |
|
| 601 |
|
|
| 505 |
|
|
|
| 1,523 |
|
|
| 1,535 |
|
Amortization of financing costs |
|
| 665 |
|
|
| 642 |
|
|
|
| 1,926 |
|
|
| 1,728 |
|
Total |
| $ | 32,674 |
|
| $ | 19,555 |
|
|
| $ | 89,924 |
|
| $ | 42,011 |
|
Weighted average interest rate |
|
| 8.50 | % |
|
| 5.05 | % |
|
|
| 7.89 | % |
|
| 4.04 | % |
Average outstanding balance |
| $ | 1,466,120 |
|
| $ | 1,445,845 |
|
|
| $ | 1,465,755 |
|
| $ | 1,280,842 |
|
7. COMMITMENTS AND CONTINGENCIES
Capital Commitments
The Company had aggregate capital commitments and undrawn capital commitments from investors as follows:
June 30, 2019 | ||||||||||||
Capital Commitments | Unfunded Capital Commitments | % of Capital Commitments Funded | ||||||||||
Common Units | $ | 806,620 | $ | 722,213 | 10 | % |
|
| September 30, 2023 |
|
| December 31, 2022 |
| ||||||||||||||||||
|
| Capital |
|
| Unfunded |
|
| % of Capital |
|
| Capital |
|
| Unfunded |
|
| % of Capital |
| ||||||
Common Units |
| $ | 1,475,812 |
|
| $ | 132,823 |
|
|
| 91 | % |
| $ | 1,475,812 |
|
| $ | 147,581 |
|
|
| 90 | % |
Portfolio Company Commitments
The Company may enter into investment commitments to fund investments through signed commitment letters which in certain circumstances may be disclosed by the Company.letters. In many circumstances, borrower acceptance and final terms are subject to transaction-related contingencies. These are disclosed as commitments upon execution of a final agreement. As of JuneSeptember 30, 2019,2023, the Company believed that it had adequate financial resources to satisfy its unfunded commitments. As of the dates indicated, theThe Company had the following unfunded commitments by investment types:
|
| Unfunded Commitment Balances(1) |
| |||||
|
| September 30, 2023 |
|
| December 31, 2022 |
| ||
1st Lien/Senior Secured Debt |
|
|
|
|
|
| ||
1272775 B.C. LTD. (dba Everest Clinical Research) |
| $ | 34 |
|
| $ | 150 |
|
Acquia, Inc. |
|
| 982 |
|
|
| 796 |
|
Admiral Buyer, Inc. (dba Fidelity Payment Services) |
|
| 8,840 |
|
|
| 8,840 |
|
AQ Helios Buyer, Inc. (dba SurePoint) |
|
| 4,160 |
|
|
| 8,020 |
|
Assembly Intermediate LLC |
|
| 8,381 |
|
|
| 6,785 |
|
Bigchange Group Limited |
|
| 2,635 |
|
|
| 3,121 |
|
Broadway Technology, LLC |
|
| 1,010 |
|
|
| 1,010 |
|
BSI3 Menu Buyer, Inc (dba Kydia) |
|
| 1,924 |
|
|
| 1,924 |
|
Bullhorn, Inc. |
|
| 693 |
|
|
| 374 |
|
Businessolver.com, Inc. |
|
| 4,141 |
|
|
| 4,141 |
|
Capitol Imaging Acquisition Corp. |
|
| 9,170 |
|
|
| 1,926 |
|
CFS Management, LLC (dba Center for Sight Management) |
|
| 618 |
|
|
| 618 |
|
Checkmate Finance Merger Sub, LLC |
|
| 2,831 |
|
|
| 2,831 |
|
Chronicle Bidco Inc. (dba Lexitas) |
|
| 2,389 |
|
|
| 3,676 |
|
CivicPlus LLC |
|
| 1,023 |
|
|
| 1,112 |
|
Clearcourse Partnership Acquireco Finance Limited |
|
| 3,014 |
|
|
| 3,730 |
|
CloudBees, Inc. |
|
| 665 |
|
|
| 665 |
|
Coding Solutions Acquisition, Inc. |
|
| 1,551 |
|
|
| 5,628 |
|
CorePower Yoga LLC |
|
| 633 |
|
|
| 422 |
|
DECA Dental Holdings LLC |
|
| 517 |
|
|
| 4,863 |
|
Diligent Corporation |
|
| 2,067 |
|
|
| 2,452 |
|
ESO Solutions, Inc |
|
| 1,317 |
|
|
| 3,292 |
|
Experity, Inc. |
|
| 3,023 |
|
|
| 3,023 |
|
Fullsteam Operations LLC |
|
| 41,297 |
|
|
| 2,761 |
|
Gainsight, Inc. |
|
| 2,484 |
|
|
| 4,830 |
|
GHA Buyer Inc. (dba Cedar Gate) |
|
| 1,749 |
|
|
| 1,749 |
|
40
June 30, 2019 | ||||||||||||
Commitment Expiration Date(1) | Unfunded Commitment | Fair Value(2) | ||||||||||
1st Lien/Senior Secured Debt | ||||||||||||
GlobalTranz Enterprises LLC | 05/15/2020 | $ | 1,862 | $ | (70 | ) | ||||||
CorePower Yoga, LLC | 05/14/2021 | 2,111 | (32 | ) | ||||||||
CorePower Yoga, LLC | 05/14/2025 | 633 | (9 | ) | ||||||||
Wolfpack IP Co. | 06/13/2025 | 3,401 | (68 | ) | ||||||||
Riverpoint Medical, LLC | 06/23/2025 | 1,806 | (18 | ) | ||||||||
Total 1st Lien/Senior Secured Debt | $ | 9,813 | $ | (197 | ) | |||||||
Total | $ | 9,813 | $ | (197 | ) |
|
|
ContingenciesTable of Contents
|
| Unfunded Commitment Balances(1) |
| |||||
|
| September 30, 2023 |
|
| December 31, 2022 |
| ||
GovDelivery Holdings, LLC (dba Granicus, Inc.) |
| $ | 1,262 |
|
| $ | 1,553 |
|
Governmentjobs.com, Inc. (dba NeoGov) |
|
| 15,915 |
|
|
| 17,506 |
|
GS AcquisitionCo, Inc. (dba Insightsoftware) |
|
| 914 |
|
|
| 914 |
|
HealthEdge Software, Inc. |
|
| 11,900 |
|
|
| 11,900 |
|
Helios Buyer, Inc. (dba Heartland) |
|
| 2,199 |
|
|
| 6,775 |
|
Honor HN Buyer, Inc |
|
| 13,629 |
|
|
| 29,948 |
|
HS4 AcquisitionCo, Inc. (dba HotSchedules & Fourth) |
|
| 765 |
|
|
| 1,093 |
|
HumanState Limited (dba PayProp) |
|
| 451 |
|
|
| 447 |
|
iCIMS, Inc. |
|
| 12,030 |
|
|
| 13,789 |
|
Intelligent Medical Objects, Inc. |
|
| 3,137 |
|
|
| 3,821 |
|
Kaseya Inc. |
|
| 1,706 |
|
|
| 2,020 |
|
MerchantWise Solutions, LLC (dba HungerRush) |
|
| 2,762 |
|
|
| 4,100 |
|
Millstone Medical Outsourcing, LLC |
|
| 1,692 |
|
|
| 1,599 |
|
MRI Software LLC |
|
| 1,143 |
|
|
| 4,381 |
|
NFM & J, L.P. (dba the Facilities Group) |
|
| 4,035 |
|
|
| 5,455 |
|
One GI LLC |
|
| 38 |
|
|
| 3,284 |
|
PDDS Holdco, Inc. (dba Planet DDS) |
|
| 7,759 |
|
|
| 5,595 |
|
Pioneer Buyer I, LLC |
|
| 3,900 |
|
|
| 3,900 |
|
Pluralsight, Inc |
|
| 1,716 |
|
|
| 2,300 |
|
Premier Care Dental Management, LLC |
|
| 2,769 |
|
|
| 3,268 |
|
Project Eagle Holdings, LLC (dba Exostar) |
|
| 3,418 |
|
|
| 3,418 |
|
Prophix Software Inc. (dba Pound Bidco) |
|
| 3,118 |
|
|
| 3,118 |
|
Riverpoint Medical, LLC |
|
| 1,580 |
|
|
| 1,806 |
|
Rodeo Buyer Company (dba Absorb Software) |
|
| 1,839 |
|
|
| 2,758 |
|
Rubrik,Inc. |
|
| 551 |
|
|
| 2,118 |
|
Southeast Mechanical, LLC (dba. SEM Holdings, LLC) |
|
| 7,140 |
|
|
| 8,500 |
|
SpendMend, LLC |
|
| 4,037 |
|
|
| 4,579 |
|
StarCompliance Intermediate, LLC |
|
| 943 |
|
|
| 1,725 |
|
Sundance Group Holdings, Inc. (dba NetDocuments) |
|
| 2,090 |
|
|
| 4,479 |
|
Sunstar Insurance Group, LLC |
|
| 15,224 |
|
|
| 21,687 |
|
Superman Holdings, LLC (dba Foundation Software) |
|
| 6,086 |
|
|
| 5,134 |
|
Sweep Purchaser LLC |
|
| 84 |
|
|
| 3,445 |
|
The Center for Orthopedic and Research Excellence, Inc. (dba HOPCo) |
|
| 2,985 |
|
|
| 3,365 |
|
Total Vision LLC |
|
| 1,720 |
|
|
| 9,548 |
|
USN Opco LLC (dba Global Nephrology Solutions) |
|
| 1,074 |
|
|
| 5,287 |
|
Volt Bidco, Inc. (dba Power Factors) |
|
| 3,343 |
|
|
| 6,000 |
|
VRC Companies, LLC (dba Vital Records Control) |
|
| 858 |
|
|
| 858 |
|
WebPT, Inc. |
|
| 2,235 |
|
|
| 3,464 |
|
Wellness AcquisitionCo, Inc. (dba SPINS) |
|
| 6,100 |
|
|
| 6,100 |
|
Whitewater Holding Company LLC |
|
| 2,695 |
|
|
| 3,968 |
|
WorkForce Software, LLC |
|
| 980 |
|
|
| 327 |
|
Zarya Intermediate, LLC (dba iOFFICE) |
|
| 4,790 |
|
|
| 8,383 |
|
Abacus Data Holdings, Inc. (dba Clutch Intermediate Holdings) |
|
| — |
|
|
| 1,764 |
|
Apptio, Inc. |
|
| — |
|
|
| 308 |
|
CORA Health Holdings Corp |
|
| — |
|
|
| 7,744 |
|
Eptam Plastics, Ltd. |
|
| — |
|
|
| 1,228 |
|
Premier Imaging, LLC (dba Lucid Health) |
|
| — |
|
|
| 7,305 |
|
Qualawash Holdings, LLC |
|
| — |
|
|
| 3,070 |
|
Thrasio, LLC |
|
| — |
|
|
| 13,604 |
|
Total 1st Lien/Senior Secured Debt |
| $ | 269,760 |
|
| $ | 347,477 |
|
|
|
|
|
|
|
| ||
1st Lien/Last-Out Unitranche |
|
|
|
|
|
| ||
EDB Parent, LLC (dba Enterprise DB) |
| $ | 4,352 |
|
| $ | 5,973 |
|
Total 1st Lien/Last-Out Unitranche |
| $ | 4,352 |
|
| $ | 5,973 |
|
Total |
| $ | 274,112 |
|
| $ | 353,450 |
|
Contingencies
In the normal course of business, the Company enters into contracts that provide a variety of general indemnifications. Any exposure to the Company under these arrangements could involve future claims that may be made against the Company. Currently, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications.
41
8. MEMBERS’ CAPITAL
20
|
Capital Drawdowns
The following table summarizes the totalTotal Units issued and proceeds related to capital drawdowns fordrawdowns:
Unit Issue Date |
| Units Issued |
|
| Proceeds Received |
| ||
For the Nine Months Ended September 30, 2023 |
|
|
|
|
|
| ||
May 30, 2023 |
|
| 160,166 |
|
| $ | 14,758 |
|
Total capital drawdowns |
|
| 160,166 |
|
| $ | 14,758 |
|
For the Nine Months Ended September 30, 2022 |
|
|
|
|
|
| ||
June 21, 2022 |
|
| 1,069,872 |
|
| $ | 103,307 |
|
August 23, 2022 |
|
| 1,564,324 |
|
|
| 147,581 |
|
Total capital drawdowns |
|
| 2,634,196 |
|
| $ | 250,888 |
|
Distributions
The following table reflects the period from April 11, 2019 (commencement of operations) to June 30, 2019:distributions declared on the Company’s common Units:
Unit Issue Date | Units Issued | Proceeds | ||||
May 3, 2019 | 324,643 | $ | 32,464 | |||
June 21, 2019 | 524,568 | 51,943 | ||||
Total capital drawdowns | 849,211 | $ | 84,407 |
Date Declared |
| Record Date |
| Payment Date |
| Amount Per Unit |
| |
For the Nine Months Ended September 30, 2023 |
|
|
|
|
| |||
September 19, 2023 |
| September 18, 2023 |
| September 29, 2023 |
| $ | 3.54 |
|
May 3, 2023 |
| May 8, 2023 |
| May 25, 2023 |
| $ | 3.03 |
|
For the Nine Months Ended September 30, 2022 |
|
|
|
|
| |||
March 2, 2022 |
| April 4, 2022 |
| April 29, 2022 |
| $ | 2.90 |
|
May 3, 2022 |
| July 5, 2022 |
| July 29, 2022 |
| $ | 2.72 |
|
Distributions
As of June 30, 2019, no distributions had been declared or paid by the Company.9. EARNINGS PER UNIT
|
The following information sets forth the computation of basic and diluted earnings per unit for the period from April 11, 2019 (commencement of operations) to June 30, 2019:unit:
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 | ||||
Numerator for basic and diluted earnings per unit - decrease in Members’ Capital resulting from operations | $ | (696 | ) | |
Denominator for basic and diluted earnings per unit - the weighted average Units outstanding | 301,230 | |||
Basic and diluted earnings (loss) per unit | $ | (2.31 | ) |
|
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||
|
| September 30, |
|
| September 30, |
|
| September 30, |
| September 30, |
| ||||
Net increase in Members’ Capital from operations |
| $ | 23,950 |
|
| $ | 15,375 |
|
| $ | 74,483 |
| $ | 51,329 |
|
Weighted average Units outstanding |
|
| 13,854,750 |
|
|
| 12,029,671 |
|
|
| 13,767,333 |
|
| 10,919,869 |
|
Basic and diluted earnings per unit |
| $ | 1.73 |
|
| $ | 1.28 |
|
| $ | 5.41 |
| $ | 4.70 |
|
Diluted earnings per unit equal basic earnings per unit because there were no common unit equivalents outstanding during the period presented.
10. FINANCIAL HIGHLIGHTS
|
Below isThe below table presents the schedule of financial highlights of the CompanyCompany:
|
| For the Nine Months Ended |
| |||||
|
| September 30, 2023 |
|
| September 30, 2022 |
| ||
Per Unit Data:(1) |
|
|
|
|
|
| ||
NAV, beginning of period |
| $ | 90.58 |
|
| $ | 95.68 |
|
Net investment income |
|
| 8.83 |
|
|
| 8.25 |
|
Net realized and unrealized gains (losses)(2) |
|
| (3.34 | ) |
|
| (3.46 | ) |
Income tax provision, realized and unrealized gains |
|
| (0.06 | ) |
|
| — |
|
Net increase in Members’ Capital from operations(2) |
| $ | 5.43 |
|
| $ | 4.79 |
|
Distributions declared from net investment income |
|
| (6.57 | ) |
|
| (5.62 | ) |
Total increase (decrease) in Members’ Capital |
| $ | (1.14 | ) |
| $ | (0.83 | ) |
NAV, end of period |
| $ | 89.44 |
|
| $ | 94.85 |
|
Units outstanding, end of period |
|
| 13,854,750 |
|
|
| 12,930,858 |
|
Weighted average units outstanding |
|
| 13,767,333 |
|
|
| 10,919,869 |
|
Total return based on NAV(3) |
|
| 5.99 | % |
|
| 5.01 | % |
Supplemental Data/Ratio:(4) |
|
|
|
|
|
| ||
Members’ Capital, end of period |
| $ | 1,239,221 |
|
| $ | 1,226,549 |
|
Ratio of expenses (without incentive fees and interest and other debt |
|
| 1.90 | % |
|
| 1.93 | % |
Ratio of interest and other debt expenses to average Members’ Capital |
|
| 9.88 | % |
|
| 6.21 | % |
Ratio of incentive fees to average Members’ Capital |
|
| 1.05 | % |
|
| 0.86 | % |
Ratio of total expenses to average Members’ Capital |
|
| 12.83 | % |
|
| 9.00 | % |
Ratio of net investment income to average Members’ Capital |
|
| 13.35 | % |
|
| 11.74 | % |
Portfolio turnover |
|
| 6 | % |
|
| 9 | % |
42
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 | ||||
Per Unit Data:(1) |
| |||
NAV, beginning of period | $ | 100.00 | ||
Net investment loss | (2.09 | ) | ||
Net realized and unrealized gains (losses)(2) | 0.67 | |||
|
|
| ||
Net increase (decrease) in net assets resulting from operations(2) | (1.42 | ) | ||
|
|
| ||
Distributions declared from net investment income(3) | – | |||
|
|
| ||
Total increase (decrease) in net assets | (1.42 | ) | ||
|
|
| ||
NAV, end of period | $ | 98.58 | ||
|
|
| ||
Units outstanding, end of period | 849,211 | |||
Weighted average units outstanding | 301,230 | |||
Total return based on NAV(4) | (1.42)% | |||
Ratio/Supplemental Data (all amounts in thousands except ratios): | ||||
Members’ Capital, end of period | $ | 83,711 | ||
Ratio of net expenses to average Members’ Capital(5) | 11.51% | |||
Ratio of expenses (without incentive fees and interest and other debt expenses) to average Members’ Capital(5) | 7.74% | |||
Ratio of interest and other debt expenses to average Members’ Capital(5) | 3.77% | |||
Ratio of incentive fees to average Members’ Capital(5) | –% | |||
Ratio of total expenses to average Members’ Capital(5) | 11.51% | |||
Ratio of net investment income to average Members’ Capital(5) | (4.98)% | |||
Average debt outstanding | $ | 19,429 | ||
Average debt per unit(6) | $ | 64.50 | ||
Portfolio turnover | 9% |
|
|
|
|
|
|
11. SUBSEQUENT EVENTS
21
|
Subsequent events after the Statementdate of the Consolidated Statements of Financial Condition date have been evaluated through the date the unaudited consolidated financial statements were issued. Other than the items discussed below, the Company has concluded that there is no impact requiring adjustment or disclosure in the consolidated financial statements.
On July 16, 2019,October 5, 2023, the Company entered into subscription agreements with investors providing additional capital commitments of $75,500. When combined with capital commitments madeexercised the option to extend the Company as of June 30, 2019, total capital commitments were $882,120.
On July 23, 2019,maturity on the Company delivered a capital drawdown notice to certain of its investors relating to the sale of 306,641 common Units for an aggregate offering price of approximately $30,269. The common Units were issued on July 30, 2019.
On July 31, 2019, the Company entered into the first amendment to theMUFG Revolving Credit Facility pursuant to whichMay 3, 2024.
On November 1, 2023, the Company agreedBoard of Directors declared a distribution equal to certain amendmentsan amount up to the Revolving Credit Facility and Western Alliance Bank agreedCompany’s taxable earnings per unit, including net investment income (if positive) for the period July 1, 2023 through September 30, 2023, payable on or about November 27, 2023 to become a lender with a $100,000 commitment under the accordion feature in the Company’s Revolving Credit Facility. Effective July 31, 2019, aggregate commitments under the Company’s Revolving Credit Facility are $275,000.Unitholders of record as of October 3, 2023.
43
22
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
The following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. References to “we,” “us,” “our,” and the “Company,” mean Goldman Sachs Private Middle Market Credit II LLC unless otherwise specified.or Goldman Sachs Private Middle Market Credit II LLC, together with its consolidated subsidiaries, as the context may require. The terms “GSAM,” “Goldman Sachs Asset Management,”our “Adviser” or our “Investment Adviser” refer to Goldman Sachs Asset Management, L.P., a Delaware limited partnership. The term “Group“GS Group Inc.” refers to The Goldman Sachs Group, Inc. “GS & Co.” refers to Goldman Sachs & Co. LLC and its predecessors. The term “Goldman Sachs” refers to GS Group Inc., together with Goldman SachsGS & Co. LLC (including its predecessors, “GS & Co.”), GSAM and its other subsidiaries and affiliates. The discussion and analysis contained in this section refers to our financial condition, results of operations and cash flows. The information contained in this section should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report. Please see “Cautionary Statement Regarding Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions associated with this discussion and analysis. Our actual results could differ materially from those anticipated by such forward-looking information due to factors discussed under “Cautionary Statement Regarding Forward-Looking Statements” appearing elsewhere in this report.
OVERVIEW
We are a specialty finance company focused on lending to middle-market companies. We are aclosed-end 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 “Investment Company Act”). In addition, we intend to electhave elected to be treated and expect to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and we expect to qualify annually for tax treatment as a RIC, commencing with our taxable year endingended December 31, 2019. From our commencement of investment operations on April 11, 2019 through JuneSeptember 30, 2019,2023, we have originated $99.20 millionapproximately $4.06 billion in aggregate principal amount of debt and equity investments prior to any subsequent exits and repayments. We seek to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, unitranche debt, including last outlast-out portions of such loans, and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments.
“Unitranche” loans are first lien loans that may extend deeper in a company’sborrower’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority between different lenders in the unitranchesuch loan. In a number of instances, we may find another lender to provide the “first out”“first-out” portion of sucha unitranche loan andwhile we retain the “last out”“last-out” portion of such loan, in which case, the “first out”“first-out” portion of the loan would generally receive priority with respect to the payment of principal, interest and any other amounts due thereunder overas compared to the “last out”“last-out” portion that we would continue to hold. In exchange for thetaking greater risk of loss, the “last out”“last-out” portion generally earns a higher interest rate than our “first out” portion.the “first-out” portion of the loan. We use the term “mezzanine” to refer to debt that ranks senior in right of payment only to a borrower’s equity securities and ranks junior in right of payment to all of such borrower’s other indebtedness. We may make multiple investments in the same portfolio company.
We expect to invest, under normal circumstances, at least 80% of our net assets (plus any borrowings for investment purposes), directly or indirectly in private middle-market credit obligations and related instruments. We define “credit obligations and related instruments” for this purpose as any fixed-income instrument, including loans to, and bonds and preferred stock of, portfolio companies and other instruments that provide exposure to such fixed-income instruments. “Middle market” is used to refer to companies with between $5 million and $125$200 million of annual earnings before interest expense, income tax expense, depreciation and amortization (“EBITDA”) excludingcertain one-time and non-recurring items that are outside the operations of these companies. While, as a result of fluctuations in the net asset value (“NAV”) of one asset relative to another asset,other assets, private middle-market credit obligations and related instruments may represent less than 80% of our net assets (plus any borrowings for investment purposes) at any time, we may not invest, under normal circumstances, more than 20% of our net assets (plus any borrowings for investment purposes) in securities and other instruments that are not private middle-market credit obligations and related instruments. To the extent we determine to invest indirectly in private middle-market credit obligations and related instruments, we may invest through certain synthetic instruments, including derivatives that have similar economic characteristics to private middle-market credit obligations. For purposes of determining compliance with our 80% policy, each applicable derivative instrument will be valued based upon its market value. We will notify our Unitholdersunitholders (the “Unitholders”) at least 60 days prior to any change to the 80% investment policy described above.
We may also originate “covenant-lite” loans, which are loans with fewer financial maintenance covenants than other obligations, or no financial maintenance covenants. Such covenant-lite loans may not include terms that allow the lender to monitor the performance of the borrower or to declare a default if certain criteria are breached. These flexible covenants (or the absence of covenants) could permit borrowers to experience a significant downturn in their results of operations without triggering any default that would permit holders of their debt (such as us) to accelerate indebtedness or negotiate terms and pricing. In the event of default, covenant-lite loans may recover less value than traditional loans as the lender may not have an opportunity to negotiate with the borrower prior to such default.
We expect to directly or indirectly invest at least 70% of our total assets in middle-market companies domiciled in the United States. However, we may from time to time invest opportunistically in large U.S. companies,non-U.S. companies, stressed or distressed debt, structured products, private equity or other opportunities, subject to limits imposed by the Investment Company Act.
44
While our investment program is expected to focus primarily on debt investments, our investments may include equity features, such as a direct investment in the equity or convertible securities of a portfolio company or warrants or options to buy a minority interest in a portfolio company. Any warrants we may receive with debt securities will generally require only a nominal cost to exercise, so as a portfolio company appreciates in value, we may achieve additional investment return from these equity investments. We may structure the warrants to provide provisions protecting our rights as a minority-interest holder, as well as puts, or rights to sell such securities back to the portfolio company, upon the occurrence of specified events. In many cases, we may also obtain registration rights in connection with these equity investments, which may include demand and “piggyback” registration rights.
For a discussion of the competitive landscape we face, please see “Item“Item 1A. Risk Factors—Competition—We operate in a highly competitive market for investment opportunities” and “Item“Item 1. Business—Competitive Advantages” in Amendment No. 1 to our Registration Statementannual report on Form 10, filed with10-K for the SEC on June 21, 2019.
Replacement of Interbank Offered Rates (IBORs) Including the London InterBank Offered Rate (“LIBOR”):
23On July 1, 2023, the publication of all LIBOR settings as representative rates ceased. The Financial Conduct Authority has allowed the publication and use of synthetic rates for certain U.S. dollar (“USD”) LIBOR settings in legal USD LIBOR-based contracts through September 2024. Since January 1, 2022, our new investments have generally been indexed to SOFR. As of September 30, 2023, we have facilitated an orderly transition of a majority of our investments and our Revolving Credit Facilities (as defined below) to SOFR or to alternative risk-free reference rates. Any remaining USD LIBOR-based investments will have transitioned subsequent to September 30, 2023 or have fallback provisions that will be utilized.
KEY COMPONENTS OF OPERATIONS
Investments
Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity for such companies, the general economic environment, the amount of capital we have available to us and the competitive environment for the type of investments we make.
As a BDC, we may not acquire any assets other than “qualifying assets” specified in the Investment Company Act, unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Pursuant to rules adopted by the Securities and Exchange Commission (the “SEC”), “eligible portfolio companies” include certain companies that do not have any securities listed on a national securities exchange and public companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million.
Revenues
We generate revenuerevenues in the form of interest income on debt investments and, to a lesser extent, capital gains and distributions, if any, on equity securities that we may acquire in portfolio companies. Some of our investments may provide for deferred interest payments orpayment-in-kind (“PIK”) interest.income. The principal amount of the debt investments and any accrued but unpaid interest generally becomes due at the maturity date.
We generate revenues primarily through receipt of interest income from the investments we hold. In addition, we may generate revenue in the form of commitment, origination, structuring, syndication, exit fees or diligence fees, fees for providing managerial assistance and consulting fees. Portfolio company fees (directors’ fees, consulting fees, administrative fees, tax advisory fees and other similar compensation) will be paid to us, unless, to the extent required by applicable law or exemptive relief, if any, therefrom, we receive our allocable portion of such fees when invested in the same portfolio company as other client accounts managed by our Investment Adviser (including GS BDC, GS PMMC and GS MMLC, collectively(collectively with other client accounts managed by our Investment Adviser,the Company, the “Accounts”), which other Accounts could receive their allocable portion of such fee. We do not expect to receive material fee income as it is not our principal investment strategy. We record contractual prepayment premiums on loans and debt securities as interest income.
45
Dividend income on preferred equity investments is recorded 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 investments is recorded on the record date for private portfolio companies and on theex-dividend date for publicly traded portfolio companies. Interest and dividend income are presented net of withholding tax, if any.
Expenses
Our primary operating expenses include the payment of the management fee (the “Management Fee”) and the incentive fee (the “Incentive Fee”) to theour Investment Adviser, legal and professional fees, interest and other debt expenses and other operating and overhead related expenses. The Management Fee and Incentive Fee compensate our Investment Adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. Pursuant to an investment advisory agreement with the Investment Adviser (the “Investment Advisory Agreement”), Company expenses borne by us in the ordinary course on an annual basis (excluding Management Fees, Incentive Fees, organizational andstart-up expenses and leverage-related expenses) will not exceed an amount equal to 0.5% of the aggregate amount of commitments to us by holders of common units of our limited liability company interests (“Units”); provided, however, that expenses incurred outside of the ordinary course, including litigation and similar expenses, are not subject to such cap. We bear all other expenses of our operations and transactions in accordance with our Investment Advisory Agreement and administration agreement (the “Administration Agreement”), including those relating to:including:
•our operational and organizational expenses;
• fees and expenses, including travel expenses, incurred by our Investment Adviser or payable to third parties related to our investments, including, among others, professional fees (including the fees and expenses of consultants and experts) and fees and expenses from evaluating, monitoring, researching and performing due diligence on investments and prospective investments;
• interest, fees and other expenses payable on indebtedness for borrowed money (including through the issuance of notes and other evidence of indebtedness), other indebtedness, financings or extensions of credit, if any, incurred by us;
• fees and expenses incurred by us in connection with membership in investment company organizations;
• brokers’ commissions;
• fees and expenses associated with calculating our net asset value (“NAV”)NAV (including the expenses of any independent valuation firm);
• legal, auditing or accounting expenses;
24
• taxes or governmental fees;
• the fees and expenses of our administrator, transfer agent, orsub-transfer agent;
• the cost of preparing unit certificates or any other expenses, including clerical expenses of issue or repurchase of our Units;
• the expenses of and fees for registering or qualifying our Units for sale and of maintaining our registration or qualifying and registering us as a broker or a dealer;
• the fees and expenses of our directors who are not affiliated with our Investment Adviser;
• the cost of preparing and distributing reports, proxy statements and notices to our Unitholders, the SEC and other regulatory authorities;
• costs of holding Unitholder meetings;
• the fees or disbursements of custodians of our assets, including expenses incurred in the performance of any obligations enumerated by limited liability company agreement or other organizational documents insofar as they govern agreements with any such custodian;
• insurance premiums; and
• costs incurred in connection with any claim, litigation, arbitration, mediation, government investigation or dispute in connection with our business and the amount of any judgment or settlement paid in connection therewith, or the enforcement of our rights against any person and indemnification or contribution expenses payable by us to any person and other extraordinary expenses not incurred in the ordinary course of our business.
Our Investment Adviser will not be required to pay expenses of activities which are primarily intended to result in sales of Units.
We expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines.
Leverage
The revolving credit facility with JPMorgan Chase Bank, National Association (as amended, restated, supplemented or otherwise modified from time to time, the “JPM Revolving Credit Facility”), and the revolving credit facility between the Company and MUFG Union Bank N.A.,Ltd. (the “MUFG Revolving Credit Facility” and together with the JPM Revolving Credit Facility, the “Revolving Credit Facility”Facilities”) allow us to borrow money and lever our investment portfolio, subject to the limitations of the Investment Company Act, with the objective of increasing our yield. This is known as “leverage” and could increase or decrease returns to our Unitholders. The use of leverage involves significant risks. As a BDC, with certain limited exceptions, we are only permitted to borrow amounts such that our asset coverage ratio, as defined in the Investment Company Act, equals at least 150% after such borrowing (if certain requirements are met). As of JuneSeptember 30, 2019,2023 and December 31, 2022, our asset coverage ratio based on the aggregate amount outstanding of our senior securities (which includes the Revolving Credit Facility)Facilities) was 203%185% and 185%. Short-term credits necessary for the settlement of securities transactions and arrangements with respect to securities lending will not be considered borrowings for these purposes. Practices and investments that may involve leverage but are not considered borrowings are not subject to the Investment Company Act’s asset coverage requirement, and we will not otherwise segregate or earmark liquid assets or enter into offsetting positions for such transactions.requirement. The amount of leverage that we employ will depend on the assessment by our Investment Adviser’sAdviser and our board of directors’directors (the “Board of Directors” or the “Board”) assessment of market conditions and other factors at the time of any proposed borrowing.
46
25
PORTFOLIO AND INVESTMENT ACTIVITY
As of June 30, 2019, ourOur portfolio (excluding our investmentinvestments in a money market fund managed by an affiliate of Group Inc. of $0.66 million)funds, if any) consisted of the following:
| As of | ||||||||||||||||||||||||||||
As of June 30, 2019 |
| September 30, 2023 |
|
| December 31, 2022 | ||||||||||||||||||||||||
Amortized Cost | Fair Value | Percentage of Total Portfolio at Fair Value |
| Amortized Cost |
|
| Fair Value |
|
| Amortized Cost |
|
| Fair Value |
|
| ||||||||||||||
($ in millions) |
| ($ in millions) |
|
| |||||||||||||||||||||||||
First Lien/Senior Secured Debt | $ | 85.43 | $ | 85.37 | 100.0 | % |
| $ | 2,580.21 |
|
| $ | 2,504.30 |
|
| $ | 2,610.79 |
|
| $ | 2,561.72 |
|
| ||||||
|
|
| |||||||||||||||||||||||||||
Total Investments | $ | 85.43 | $ | 85.37 | 100.0 | % | |||||||||||||||||||||||
|
|
| |||||||||||||||||||||||||||
First Lien/Last-Out Unitranche |
|
| 20.09 |
|
|
| 19.86 |
|
|
| 18.41 |
|
|
| 18.24 |
|
| ||||||||||||
Second Lien/Senior Secured Debt |
|
| — |
|
|
| — |
|
|
| 15.38 |
|
|
| 9.25 |
|
| ||||||||||||
Unsecured Debt |
|
| 6.57 |
|
|
| 6.57 |
|
|
| 5.59 |
|
|
| 5.55 |
|
| ||||||||||||
Preferred Stock |
|
| 37.90 |
|
|
| 47.36 |
|
|
| 39.73 |
|
|
| 40.99 |
|
| ||||||||||||
Common Stock |
|
| 11.00 |
|
|
| 15.83 |
|
|
| 11.00 |
|
|
| 11.90 |
|
| ||||||||||||
Warrants |
|
| 1.67 |
|
|
| 0.30 |
|
|
| 1.67 |
|
|
| 0.55 |
|
| ||||||||||||
Total investments |
| $ | 2,657.44 |
|
| $ | 2,594.22 |
|
| $ | 2,702.57 |
|
| $ | 2,648.20 |
|
|
As of June 30, 2019, the
The weighted average yield of our portfolio by asset type (excluding our investmentinvestments in a money market fund managed by an affiliate of Group Inc. of $0.66 million)funds, if any), at amortized cost and fair value, was as follows:
| As of |
| ||||||||||||||||||||||
As of June 30, 2019 |
| September 30, 2023 |
|
| December 31, 2022 |
| ||||||||||||||||||
Amortized Cost | Fair Value |
| Amortized |
|
| Fair Value |
|
| Amortized |
|
| Fair Value |
| |||||||||||
Weighted Average Yield(1) |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
First Lien/Senior Secured Debt(2) | 9.0% | 9.0% |
|
| 11.8 | % |
|
| 12.6 | % |
|
| 11.1 | % |
|
| 11.6 | % | ||||||
First Lien/Last-Out Unitranche(2)(3) |
|
| 14.3 |
|
|
| 14.4 |
|
|
| 13.2 |
|
|
| 13.2 |
| ||||||||
Second Lien/Senior Secured Debt(2) |
|
| — |
|
|
| — |
|
|
| 13.1 |
|
|
| 37.7 |
| ||||||||
Unsecured Debt(2) |
|
| 17.6 |
|
|
| 17.6 |
|
|
| 17.1 |
|
|
| 17.2 |
| ||||||||
Preferred Stock(4) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
| ||||||||
Common Stock(4) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
| ||||||||
Warrants(4) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
| ||||||||
Total Portfolio | 9.0% | 9.0% |
|
| 11.6 | % |
|
| 12.3 | % |
|
| 10.9 | % |
|
| 11.5 | % |
|
|
As of September 30, 2023, the total portfolio weighted average yield measured at amortized cost and fair value was 11.6% and 12.3%, as compared to 10.9% and 11.5% as of December 31, 2022. The increase in the weighted average yield at fair value within First Lien/Senior Secured Debt was primarily driven by rising interest rates and financial underperformance. The increase in the weighted average yield at amortized cost and fair value within First Lien/Last-Out Unitranche was primarily driven by rising interest rates. Within Second Lien/Senior Secured Debt, the decrease in weighted average yield at amortized cost and fair value was primarily driven by the recapitalization of our investment in Zep, Inc.
The following table presents certain selected information regarding our investment portfolio (excluding our investmentinvestments in a money market fund managed by an affiliate of Group Inc. of $0.66 million) as of June 30, 2019:funds, if any):
|
| As of |
| ||||||
|
| September 30, 2023 |
| December 31, 2022 |
| ||||
Number of portfolio companies |
|
|
| 89 |
|
|
| 92 |
|
Percentage of performing debt bearing a floating rate(1) |
|
|
| 100.0 | % |
|
| 100.0 | % |
Percentage of performing debt bearing a fixed rate(1)(2) |
|
| —% |
|
| —% |
| ||
Weighted average leverage (net debt/EBITDA)(3) |
|
| 5.8x |
|
| 6.0x |
| ||
Weighted average interest coverage(3) |
|
| 1.5x |
|
| 1.7x |
| ||
Median EBITDA(3) |
| $ | 47.73 million |
| $ | 45.10 million |
|
(1) | ||||
Measured on a fair value basis. Excludes investments, if any, placed onnon-accrual. |
(2) | Includes income producing preferred stock investments, if applicable. |
(3) | For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking EBITDA for the trailing |
47
For a particular portfolio company, we also calculate the level of contractual interest expense owed by the portfolio company and compare that amount to EBITDA (“interest coverage ratio”). We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of our performing debt investments, excluding investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. |
Median EBITDA is based on our debt investments, excluding investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. |
Portfolio company statistics are derived from the most recently available financial statements of each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by us and may reflect a normalized or adjusted amount. |
As of |
26
Floating rates are primarily London InterBank Offered Rate (“LIBOR”) plus a spread.
Our Investment Adviser monitors our portfolio companies on an ongoing basis. It monitorsbasis, the financial trends of each portfolio company to determine if it is meeting its respective business plan and to assess the appropriate course of action for each portfolio company. Our Investment Adviser has several methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:
(i) assessment of success in adhering to the portfolio company’s business plan and compliance with covenants;
(ii) periodic or regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor to discuss financial position, requirements and accomplishments;
(iii) comparisons to our other portfolio companies in the industry, if any;
(iv) attendance at and participation in boardBoard meetings or presentations by portfolio companies; and
(v) review of monthly and quarterly financial statements and financial projections of portfolio companies.
As part of the monitoring process, our Investment Adviser also employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our Investment Adviser grades the credit risk of all investments on a scale of 1 to 4 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of origination or acquisition), although it may also take into account in certain circumstances the performance of the portfolio company’s business, the collateral coverage of the investment and other relevant factors. The grading system for our investments is as follows:
• Grade 1investments with a grade of 1 involve the least amount of risk to our initial cost basis. The trends and risk factors for this investment since origination or acquisition are generally favorable, which may include the performance of the portfolio company or a potential exit;
• Grade 2investments with a grade of 2 involve a level of risk to our initial cost basis that is similar to the risk to our initial cost basis at the time of origination or acquisition. This portfolio company is generally performing as expected and the risk factors to our ability to ultimately recoup the cost of our investment are neutral to favorable. All investments or acquired investments in new portfolio companies are initially assessed a grade of 2;
• Grade 3investments with a grade of 3 indicate that the risk to our ability to recoup the initial cost basis of such investment has increased materially since origination or acquisition, including as a result of factors such as declining performance andnon-compliance with debt covenants; however, payments are generally not more than 120 days past due; and
• Grade 4investments with a grade of 4 indicate that the risk to our ability to recoup the initial cost basis of such investment has substantially increased since origination or acquisition, and the portfolio company likely has materially declining performance. For debt investments with an investment grade of 4, in most cases, most or all of the debt covenants are out of compliance and payments are substantially delinquent. For investments graded 4, it is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis upon exit.
Our Investment Adviser grades the investments in our portfolio at least each quarter and it is possible that the grade of a portfolio investment may be reduced or increased over time. For investments with a grade of 3 or 4, theour Investment Adviser enhances its level of scrutiny over the monitoring of such portfolio company. The following table shows the composition of our portfolio (excluding our investmentinvestments in a money market fund managed by an affiliate of Group Inc. of $0.66 million)funds, if any) on the 1 to 4 grading scale asscale:
|
| As of |
| |||||||||||||
|
| September 30, 2023 |
|
| December 31, 2022 |
| ||||||||||
Investment Performance Rating |
| Fair Value |
|
| Percentage of |
|
| Fair Value |
|
| Percentage of |
| ||||
|
| (in millions) |
|
|
|
|
| (in millions) |
|
|
|
| ||||
Grade 1 |
| $ | 189.07 |
|
|
| 7.3 | % |
| $ | — |
|
|
| — |
|
Grade 2 |
|
| 2,319.26 |
|
|
| 89.4 |
|
|
| 2,587.88 |
|
|
| 97.7 |
|
Grade 3 |
|
| 26.04 |
|
|
| 1.0 |
|
|
| 25.77 |
|
|
| 1.0 |
|
Grade 4 |
|
| 59.85 |
|
|
| 2.3 |
|
|
| 34.55 |
|
|
| 1.3 |
|
Total Investments |
| $ | 2,594.22 |
|
|
| 100.0 |
|
| $ | 2,648.20 |
|
|
| 100.0 | % |
48
Table of June 30, 2019:Contents
As of June 30, 2019 | ||||||||
Investment Performance Rating | Fair Value | Percentage of Total Portfolio at Fair Value | ||||||
(in millions) | ||||||||
Grade 1 | $ | – | – | % | ||||
Grade 2 | 85.37 | 100.0 | ||||||
Grade 3 | – | – | ||||||
Grade 4 | – | – | ||||||
|
|
|
| |||||
Total Investments | $ | 85.37 | 100.0 | % | ||||
|
|
|
|
The increase in investments with a grade 1 investment performance rating was driven by investments with an aggregate fair value of $189.07 million being upgraded from a grade 2 investment performance rating due to potential exits. The increase in investments with a grade 4 investment performance rating was primarily driven by investments with an aggregate fair value of $53.78 million being downgraded from a grade 2 investment performance rating due to financial underperformance offset by the restructuring of an investment with a fair value of $34.55 million.
27
The following table shows the amortized cost of our performing andnon-accrual investments (excluding our investmentinvestments in a money market fund managed by an affiliate of Group Inc. of $0.66 million) as of June 30, 2019:funds, if any):
| As of |
| ||||||||||||||||||||||
June 30, 2019 |
| September 30, 2023 |
|
| December 31, 2022 |
| ||||||||||||||||||
Amortized Cost | Percentage of Total Portfolio at Amortized Cost |
| Amortized Cost |
|
| Percentage of |
|
| Amortized Cost |
|
| Percentage of |
| |||||||||||
(in millions) |
| (in millions) |
|
|
|
|
| (in millions) |
|
|
|
| ||||||||||||
Performing | $ | 85.43 | 100.0 | % |
| $ | 2,563.31 |
|
|
| 96.5 | % |
| $ | 2,660.95 |
|
|
| 98.5 | % | ||||
Non-accrual | – | – |
|
| 94.13 |
|
|
| 3.5 |
|
|
| 41.62 |
|
|
| 1.5 |
| ||||||
|
| |||||||||||||||||||||||
Total Investments | $ | 85.43 | 100.0 | % |
| $ | 2,657.44 |
|
|
| 100.0 | % |
| $ | 2,702.57 |
|
|
| 100.0 | % | ||||
|
|
Investments are placed onnon-accrual status when it is probable that principal, interest or dividends will not be collected according to the contractual terms. Accrued interest or dividends generally are reversed when an investment is placed onnon-accrual status. Interest or dividend payments received onnon-accrual investments may be recognized as income or applied to principal depending upon management’s judgment.Non-accrual investments are restored to accrual status when past due principal and interest or dividends are paid and, in management’s judgment, principal and interest or dividend payments are likely to remain current. We may make exceptions to this treatment if the loan has sufficient collateral value and is in the process of collection.
The following table shows our investment activity by investment type(1):
|
| For the Three Months Ended |
| |||||
|
| September 30, 2023 |
|
| September 30, 2022 |
| ||
|
| ($ in millions) |
| |||||
Amount of investments committed at cost: |
|
|
|
|
|
| ||
First Lien/Senior Secured Debt |
| $ | 20.36 |
|
| $ | 208.30 |
|
Common Stock |
|
| — |
|
|
| 1.00 |
|
Total |
| $ | 20.36 |
|
| $ | 209.30 |
|
Proceeds from investments sold or repaid: |
|
|
|
|
|
| ||
First Lien/Senior Secured Debt |
| $ | 104.08 |
|
| $ | 154.94 |
|
Second Lien/Senior Secured Debt |
|
| 15.41 |
|
|
| — |
|
Total |
| $ | 119.49 |
|
| $ | 154.94 |
|
Net increase (decrease) in portfolio |
| $ | (99.13 | ) |
| $ | 54.36 |
|
Number of new portfolio companies with new investment commitments |
|
| — |
|
|
| 3 |
|
Total new investment commitment amount in new portfolio companies |
| $ | — |
|
| $ | 39.19 |
|
Average new investment commitment amount in new portfolio companies |
| $ | — |
|
| $ | 13.06 |
|
Number of existing portfolio companies with new investment commitments |
|
| 2 |
|
|
| 8 |
|
Total new investment commitment amount in existing portfolio companies |
| $ | 20.36 |
|
| $ | 170.11 |
|
Weighted average remaining term for new investment commitments (in years)(2) |
|
| — |
|
|
| 5.0 |
|
Percentage of new debt investment commitments at floating interest rates |
|
| 100.0 | % |
|
| 100.0 | % |
Percentage of new debt investment commitments at fixed interest rates(3) |
|
| — | % |
|
| — | % |
Weighted average yield on new debt and income producing investment commitments(4) |
|
| 10.2 | % |
|
| 10.0 | % |
Weighted average yield on new investment commitments(5) |
|
| 10.2 | % |
|
| 9.9 | % |
Weighted average yield on debt and income producing investments sold or repaid(6) |
|
| 11.9 | % |
|
| 8.0 | % |
Weighted average yield on investments sold or repaid(7) |
|
| 11.9 | % |
|
| 8.0 | % |
49
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 | ||||
($ in millions) | ||||
New investments committed at cost: | ||||
Gross originations | $ | 99.20 | ||
Less: Syndications(1) | – | |||
|
| |||
Net amount of new investments committed at cost: | $ | 99.20 | ||
Amount of investments committed at cost(2): | ||||
First Lien/Senior Secured Debt | $ | 99.20 | ||
|
| |||
Total | $ | 99.20 | ||
|
| |||
Proceeds from investments sold or repaid(9): | ||||
First Lien/Senior Secured Debt | $ | 3.97 | ||
|
| |||
Total | $ | 3.97 | ||
|
| |||
Net increase (decrease) in portfolio | $ | 95.23 | ||
|
| |||
Number of new portfolio companies with new investment commitments(3) | 5 | |||
Total new investment commitment amount in new portfolio companies(3) | $ | 99.20 | ||
Average new investment commitment amount in new portfolio companies(3) | $ | 19.84 | ||
Number of existing portfolio companies with new investment commitments(3) | – | |||
Total new investment commitment amount in existing portfolio companies(3) | $ | – | ||
Weighted average remaining term for new investment commitments (in years)(3)(4) | 5.5 | |||
Percentage of new debt investment commitments at floating interest rates(3)(10) | 100.0% | |||
Percentage of new debt investment commitments at fixed interest rates(3)(10) | –% | |||
Weighted average yield on new debt and income producing investment commitments(2)(3)(5) | 8.9% | |||
Weighted average yield on new investment commitments(2)(3)(6) | 8.9% | |||
Weighted average yield on debt and income producing investments sold or paid down(7)(9) | 9.3% | |||
Weighted average yield on investments sold or paid down(8)(9) | 9.3% |
|
|
|
|
28
|
|
|
|
|
|
RESULTS OF OPERATIONS
Our operating results for the period from April 11, 2019 (commencement of operations) to June 30, 2019 were as follows:
| For the Three Months Ended |
|
| For the Nine Months Ended |
| ||||||||||||||
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 |
| September 30, 2023 |
|
| September 30, 2022 |
|
| September 30, 2023 |
| September 30, 2022 |
| ||||||||
($ in millions) |
| ($ in millions) |
| ||||||||||||||||
Total investment income | $ | 0.43 |
| $ | 83.59 |
|
| $ | 65.55 |
|
| $ | 244.83 |
| $ | 163.31 |
| ||
Net expenses | (1.06 | ) |
|
| (43.62 | ) |
|
| (29.87 | ) |
|
| (123.30 | ) |
| (73.18 | ) | ||
| |||||||||||||||||||
Net investment income | (0.63 | ) |
|
| 39.97 |
|
|
| 35.68 |
|
|
| 121.53 |
| 90.13 |
| |||
| |||||||||||||||||||
Net realized gain (loss) on investments | – |
|
| 0.07 |
|
|
| — |
|
|
| (37.28 | ) |
| (5.33 | ) | |||
Net unrealized appreciation (depreciation) on investments | (0.07 | ) |
|
| (16.89 | ) |
|
| (21.93 | ) |
|
| (8.84 | ) |
| (36.46 | ) | ||
| |||||||||||||||||||
Net increase (decrease) in Members’ Capital resulting from operations | $ | (0.70 | ) | ||||||||||||||||
| |||||||||||||||||||
Net realized and unrealized gains (losses) on foreign currency translations and other transactions |
|
| 0.82 |
|
|
| 1.50 |
|
|
| (0.15 | ) |
| 2.95 |
| ||||
Income tax (provision) benefit, realized and unrealized gain/loss |
|
| (0.02 | ) |
|
| 0.13 |
|
|
| (0.78 | ) |
| 0.04 |
| ||||
Net increase in members’ capital from operations |
| $ | 23.95 |
|
| $ | 15.38 |
|
| $ | 74.48 |
| $ | 51.33 |
|
Net increase (decrease) in Members’ Capital resultingmembers’ capital from operations can vary from period to period as a result of various factors, including acquisitions, the level of new investment commitments, the recognition of realized gains and losses and changes in unrealized appreciation and depreciation onin the investment portfolio. As a result, comparisons may not be meaningful.
Investment Income
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 | ||||
($ in millions) | ||||
Interest | $ | 0.37 | ||
Dividend income | 0.05 | |||
Other income | 0.01 | |||
|
| |||
Total investment income | $ | 0.43 | ||
|
|
Investment IncomeOur investment income was as follows:
Investment
|
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||
|
| September 30, 2023 |
|
| September 30, 2022 |
|
| September 30, 2023 |
| September 30, 2022 |
| ||||
|
| ($ in millions) |
| ||||||||||||
Interest income |
| $ | 74.38 |
|
| $ | 60.03 |
|
| $ | 218.39 |
| $ | 149.68 |
|
Payment-in-kind income |
|
| 6.43 |
|
|
| 4.35 |
|
|
| 18.95 |
|
| 10.76 |
|
Dividend income |
|
| 2.09 |
|
|
| 0.24 |
|
|
| 5.22 |
|
| 0.24 |
|
Other income |
|
| 0.69 |
|
|
| 0.93 |
|
|
| 2.27 |
|
| 2.63 |
|
Total investment income |
| $ | 83.59 |
|
| $ | 65.55 |
|
| $ | 244.83 |
| $ | 163.31 |
|
In the table above:
50
29
Expenses
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 | ||||
($ in millions) | ||||
Interest and other debt expenses | $ | 0.25 | ||
Management fees | 0.15 | |||
Offering costs | 0.24 | |||
Organization expenses | 0.16 | |||
Professional fees | 0.11 | |||
Administration, custodian and transfer agent fees | 0.11 | |||
Directors’ fees | 0.02 | |||
Other expenses | 0.02 | |||
|
| |||
Net expenses | $ | 1.06 | ||
|
|
Interest and other debtOur expenses were as follows:
|
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||
|
| September 30, 2023 |
|
| September 30, 2022 |
|
| September 30, 2023 |
| September 30, 2022 |
| ||||
|
| ($ in millions) |
| ||||||||||||
Interest and other debt expenses |
| $ | 33.38 |
|
| $ | 21.77 |
|
| $ | 92.42 |
| $ | 48.91 |
|
Management fees |
|
| 4.65 |
|
|
| 4.35 |
|
|
| 13.96 |
|
| 12.06 |
|
Incentive fees |
|
| 4.23 |
|
|
| 2.71 |
|
|
| 13.14 |
|
| 9.06 |
|
Professional fees |
|
| 0.55 |
|
|
| 0.40 |
|
|
| 1.41 |
|
| 1.12 |
|
Directors’ fees |
|
| 0.07 |
|
|
| 0.07 |
|
|
| 0.22 |
|
| 0.22 |
|
Other general and administrative expenses |
|
| 0.74 |
|
|
| 0.57 |
|
|
| 2.15 |
|
| 1.81 |
|
Total expenses |
| $ | 43.62 |
|
| $ | 29.87 |
|
| $ | 123.30 |
| $ | 73.18 |
|
In the table above:
Facilities.
For increased from $4.35 million and $12.06 million for the periodthree and nine months ended September 30, 2022 to $4.65 million and $13.96 million for the three and nine months ended September 30, 2023. The increase for the nine months September 30, 2023 is primarily driven by an increase in members' capital.
Organization ExpensesNet Realized Gains (Losses) and Offering Costs
We have incurred expenses related to our formation, organization and continuous offering of our Units. For the period from April 11, 2019 (commencement of operations) to June 30, 2019, we accrued offering costs of $0.24 million. For the period from April 11, 2019 (commencement of operations) to June 30, 2019, we incurred organization costs of $0.16 million.
Net Change in Unrealized Appreciation (Depreciation) on Investments
The realized gains and losses on fully exited and partially exited investments in portfolio companies consisted of the following:
|
| For the Three Months Ended |
|
| For the Nine Months Ended |
| ||||||||||
|
| September 30, 2023 |
|
| September 30, 2022 |
|
| September 30, 2023 |
|
| September 30, 2022 |
| ||||
|
| (in millions) |
| |||||||||||||
MedeAnalytics, Inc. |
| $ | — |
|
| $ | — |
|
| $ | (37.37 | ) |
| $ | — |
|
Convene 237 Park Avenue, LLC (dba Convene) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5.33 | ) |
Other, net |
|
| 0.07 |
|
|
| — |
|
|
| 0.09 |
|
|
| — |
|
Net realized gain (loss) on investments |
| $ | 0.07 |
|
| $ | — |
|
| $ | (37.28 | ) |
| $ | (5.33 | ) |
For the nine months ended September 30, 2023, net realized losses were primarily driven by the restructuring of our first lien debt investment in MedeAnalytics Inc. which resulted in a realized loss of $37.37 million. For the nine months ended September 30, 2022, net realized losses were primarily driven by the full exit of our first lien debt investments in Convene 237 Park Avenue, LLC (dba Convene) in April 2022, which resulted in a realized loss of $5.33 million.
Any changes in fair value are recorded inas a change in unrealized appreciation (depreciation) on investments. For further details on the valuation process, refer to “CriticalNote 2 “Significant Accounting Policies—Valuation of Portfolio Investments.”Investments” in our consolidated financial statements. Net change in unrealized appreciation (depreciation) on investments for the period from April 11, 2019 (commencement of operations) to June 30, 2019 were as follows:
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||||||||
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 |
| September 30, 2023 |
|
| September 30, 2022 |
|
| September 30, 2023 |
|
| September 30, 2022 |
| ||||||||
($ in millions) |
| ($ in millions) |
| |||||||||||||||||
Unrealized appreciation | $ | 0.16 |
| $ | 16.84 |
|
| $ | 1.80 |
|
| $ | 32.80 |
|
| $ | 8.36 |
| ||
Unrealized depreciation | (0.23 | ) |
|
| (33.73 | ) |
|
| (23.73 | ) |
|
| (41.64 | ) |
|
| (44.82 | ) | ||
| ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | $ | (0.07 | ) |
| $ | (16.89 | ) |
| $ | (21.93 | ) |
| $ | (8.84 | ) |
| $ | (36.46 | ) | |
|
51
30
The net change in unrealized appreciation (depreciation) on investments for the period from April 11, 2019 (commencement of operations) to June 30, 2019 consisted of the following:
For the period from April 11, 2019 (commencement of operations) to June 30, 2019 | ||||
($ in millions) | ||||
Portfolio Company: | ||||
Picture Head Midco LLC | $ | 0.16 | ||
CorePower Yoga, LLC | – | (1) | ||
Wolfpack IP Co. | (0.01 | ) | ||
Riverpoint Medical, LLC | (0.06 | ) | ||
GlobalTranz Enterprises LLC | (0.16 | ) | ||
|
| |||
Total | $ | (0.07 | ) | |
|
|
|
| For the Three |
| For the Nine |
| ||
|
| ($ in millions) |
| ||||
Portfolio Company: |
|
|
|
|
| ||
Zep Inc. |
| $ | 6.90 |
| $ | 6.14 |
|
Exostar LLC - Class B |
|
| 1.87 |
|
| 2.39 |
|
Broadway Parent, LLC |
|
| 1.26 |
|
| 2.38 |
|
CloudBees, Inc. |
|
| 1.18 |
|
| 2.25 |
|
PT Intermediate Holdings III, LLC (dba Parts Town) |
|
| 0.50 |
|
| 0.49 |
|
Other, net (1) |
|
| 0.27 |
|
| 0.56 |
|
MedeAnalytics, Inc. |
|
| — |
|
| 8.89 |
|
BSI3 Menu Buyer, Inc (dba Kydia) |
|
| (1.04 | ) |
| (1.61 | ) |
Pluralsight, Inc |
|
| (1.34 | ) |
| (1.45 | ) |
Sweep Purchaser LLC |
|
| (1.24 | ) |
| (1.68 | ) |
Thrasio, LLC |
|
| (11.14 | ) |
| (11.36 | ) |
Zodiac Intermediate, LLC (dba Zipari) |
|
| (14.11 | ) |
| (15.84 | ) |
Total |
| $ | (16.89 | ) | $ | (8.84 | ) |
|
Net change in unrealized appreciation (depreciation) in our investments for the three months ended September 30, 2023 was primarily driven by the financial underperformance of Thrasio, LLC and Zodiac Intermediate, LLC (dba Zipari), partially offset by the reversal of unrealized depreciation in connection with the recapitalization of our second lien debt investment in Zep Inc.
Net change in unrealized appreciation (depreciation) in our investments for the nine months ended September 30, 2023 was primarily driven by the financial underperformance of Thrasio, LLC and Zodiac Intermediate, LLC (dba Zipari), partially offset by the reversal of unrealized depreciation in connection with the aforementioned restructuring of our first lien debt investments in MedeAnalytics, Inc. and the reversal of unrealized depreciation in connection with the recapitalization of our second lien debt investment in Zep Inc.
|
| For the Three |
| For the Nine |
| ||
|
| ($ in millions) |
| ||||
Portfolio Company: |
|
|
|
|
| ||
Broadway Parent, LLC |
| $ | 0.29 |
| $ | (0.39 | ) |
Governmentjobs.com, Inc. (dba NeoGov) |
|
| 0.26 |
|
| (0.03 | ) |
Superman Holdings, LLC (dba Foundation Software) |
|
| 0.19 |
|
| 0.01 |
|
Exostar LLC - Class B |
|
| 0.16 |
|
| (0.07 | ) |
Syntellis Performance Solutions, LLC (dba Axiom) |
|
| 0.15 |
|
| 0.18 |
|
EDB Parent, LLC (dba Enterprise DB) |
|
| 0.11 |
|
| 0.11 |
|
Kaseya Inc. |
|
| 0.08 |
|
| 0.08 |
|
HS4 AcquisitionCo, Inc. (dba HotSchedules & Fourth) |
|
| 0.06 |
|
| 0.08 |
|
Convene 237 Park Avenue, LLC (dba Convene) |
| — |
|
| 7.59 |
| |
MedeAnalytics, Inc. |
|
| (0.28 | ) |
| (3.46 | ) |
Zep Inc. |
|
| (0.77 | ) |
| (2.27 | ) |
CloudBees, Inc. |
|
| (1.00 | ) |
| (2.51 | ) |
Bigchange Group Limited |
|
| (1.07 | ) |
| (2.56 | ) |
MRI Software LLC |
|
| (1.28 | ) |
| (1.48 | ) |
GHA Buyer Inc. (dba Cedar Gate) |
|
| (1.34 | ) |
| (1.55 | ) |
Zodiac Intermediate, LLC (dba Zipari) |
|
| (1.53 | ) |
| (1.65 | ) |
Zarya Intermediate, LLC (dba iOFFICE) |
|
| (1.67 | ) |
| (0.96 | ) |
Thrasio, LLC |
|
| (2.03 | ) |
| (2.08 | ) |
Other, net (1) |
|
| (12.26 | ) |
| (25.50 | ) |
Total |
| $ | (21.93 | ) | $ | (36.46 | ) |
Net change in unrealized appreciation (depreciation) in our investments for the three and nine months ended September 30, 2022 was primarily driven by increased market volatility and widening credit spreads, partially offset by the reversal of unrealized depreciation in connection with the aforementioned exit of our first lien debt investments in Convene 237 Park Avenue, LLC (dba Convene).
52
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
The primary use of existing funds and any funds raised in the future is expected to be for our investments in portfolio companies, cash distributions to our Unitholders or for other general corporate purposes, including paying for operating expenses or debt service to the extent we borrow or issue senior securities.
We expect to generate cash primarily from the net proceeds of any future offerings of securities, drawdowns of capital commitments, future borrowings and cash flows from operations. To the extent we determine that additional capital would allow us to take advantage of additional investment opportunities, if the market for debt financing presents attractively priced debt financing opportunities, or if our Board of Directors otherwise determines that leveraging our portfolio would be in our best interest and the best interests of our Unitholders, we may enter into credit facilities in addition to our Revolving Credit Facility,Facilities, or issue other senior securities. We would expect any such credit facilities may be secured by certain of our assets and may contain advance rates based upon pledged collateral. The pricing and other terms of any such facilities would depend upon market conditions when we enter into any such facilities as well as the performance of our business, among other factors. As a BDC, with certain limited exceptions, we are only permitted to borrow amounts such that our asset coverage ratio, as defined in the Investment Company Act, is at least 150% after such borrowing (if certain requirements are met). See “—Key Components of Operations—Leverage.Leverage.” As of JuneSeptember 30, 2019,2023 and December 31, 2022, our asset coverage ratio based on the aggregate amount outstanding of our senior securities (which includes the Revolving Credit Facilities) was 203%185% and 185%. We may also refinance or repay any of our indebtedness at any time based on our financial condition and market conditions.
We may enter into investment commitments through signed commitment letters, whichthat may ultimately become investment transactions in the future. We regularly evaluate and carefully consider our unfunded commitments using GSAM’s proprietary risk management framework for the purpose of planning our capital resources and ongoing liquidity, including our financial leverage.
31
As of June 30, 2019, we had cash of approximately $77.59 million. In addition, as of June 30, 2019, we had an investment in a money market fund managed by an affiliate of Group Inc. of $0.66 million. Cash used for operating activities for the period from April 11, 2019 (commencement of operations) to June 30, 2019 was approximately $86.75 million, primarily driven by purchases of investments of $89.38 million, net purchases of investments in the affiliated money market fund of $0.66 million, and a decrease in Members’ Capital resulting from operations of $0.70 million, offset by proceeds from sales and principal repayments of $3.96 million and other operating activities of $0.03 million. Cash provided by financing activities for the period from April 11, 2019 (commencement of operations) to June 30, 2019 was approximately $164.34 million, primarily driven by proceeds from the issuance of common Units of $84.41 million and borrowings on debt of $136.70 million, offset by repayments on debt of $55.80 million and other financing activities of $0.97 million.
To the extent permissible under the risk retention rules and applicable provisions of the Investment Company Act, we may raise capital by securitizing certain of our investments, including through the formation of one or more collateralized loan obligations or asset based facilities, while retaining all or most of the exposure to the performance of these investments. This would involve contributing a pool of assets to a special purpose entity, and selling debt interests in such entity on anon-recourse or limited-recourse basis to purchasers. We may also pursue other forms of debt financing, including potentially from the Small Business Administration through a future small business investment company (“SBIC”) subsidiary (subject to regulatory approvals).
Credit Alternatives GP LLC (the “Initial Member”), an affiliate of our Investment Adviser, made a capital contribution to us of $100 on April 11, 2019 and served as our sole initial member. We cancelled the Initial Member’s interest in the Company on May 3, 2019. We began accepting subscription agreements (“Subscription Agreements”) from investors acquiring common Units in our private offering. Under the terms of the Subscription Agreements, investors are required to make capital contributions up to the amount of their undrawn capital commitment to purchase Units each time we deliver a drawdown notice.
As of June 30, 2019,the dates indicated, we had aggregate capital commitments and undrawn capital commitments from investors as follows:
June 30, 2019 | ||||||||||||
Capital Commitments ($ in millions) | Unfunded Capital Commitments ($ in millions) | % of Capital Commitments Funded | ||||||||||
Common Units | $ | 806.62 | $ | 722.21 | 10 | % |
|
| September 30, 2023 |
|
| December 31, 2022 |
| ||||||||||||||||||
|
| Capital |
|
| Unfunded |
|
| % of Capital |
|
| Capital |
|
| Unfunded |
|
| % of Capital |
| ||||||
Common Units |
| $ | 1,475.81 |
|
| $ | 132.82 |
|
|
| 91 | % |
| $ | 1,475.81 |
|
| $ | 147.58 |
|
|
| 90 | % |
The following table summarizes the total Units issued and proceeds related to capital drawdowns for the period from April 11, 2019 (commencement of operations) to June 30, 2019:drawdowns:
Unit Issue Date |
| Units Issued |
|
| Proceeds |
| ||
For the Nine Months Ended September 30, 2023 |
|
|
|
|
|
| ||
May 30, 2023 |
|
| 160,166 |
|
| $ | 14.76 |
|
Total capital drawdowns |
|
| 160,166 |
|
| $ | 14.76 |
|
For the Nine Months Ended September 30, 2022 |
|
|
|
|
|
| ||
June 21, 2022 |
|
| 1,069,872 |
|
| $ | 103.31 |
|
August 23, 2022 |
|
| 1,564,324 |
|
|
| 147.58 |
|
Total capital drawdowns |
|
| 2,634,196 |
|
| $ | 250.89 |
|
Unit Issue Date | Units Issued | Proceeds ($ in millions) | ||||
May 3, 2019 | 324,643 | $ | 32.47 | |||
June 21, 2019 | 524,568 | 51.94 | ||||
Total capital drawdowns | 849,211 | $ | 84.41 |
Contractual Obligations
We have entered into certain contracts under which we have future commitments. Payments under the Investment Advisory Agreement, pursuant to which GSAM has agreed to serve as our Investment Adviser, are equal to (1) a percentage of our average NAV and (2) an Incentive Fee based on investment performance. Under the Administration Agreement, pursuant to which State Street Bank and Trust Company (the “Administrator”) has agreed to furnish us with the administrative services necessary to conduct ourday-to-day operations, we pay our administratorAdministrator such fees as may be agreed between us and our administratorAdministrator that we determine are commercially reasonable in our sole discretion. Generally, either party may terminate the Investment Advisory Agreement without penalty on at least 60 days’ written notice to the other party. Either party may terminate the Administration Agreement without penalty upon at least 30 days’ written notice to the other party.
The following table shows our contractual obligations as of JuneSeptember 30, 2019:2023:
Payments Due by Period ($ in millions) | ||||||||||||||||||||
Total | Less Than 1 Year | 1 – 3 Years | 3 – 5 Years | More Than 5 Years | ||||||||||||||||
Revolving Credit Facility | $ | 80.90 | $ | – | $ | 80.90 | $ | – | $ | – |
|
| Payments Due by Period ($ in millions) |
| |||||||||||||||||
|
| Total |
|
| Less Than |
|
| 1 – 3 |
|
| 3 – 5 |
|
| More Than |
| |||||
MUFG Revolving Credit Facility |
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
JPM Revolving Credit Facility(1) |
| $ | 1,465.38 |
|
| $ | — |
|
| $ | 1,465.38 |
|
| $ | — |
|
| $ | — |
|
53
MUFG Revolving Credit Facility
We entered into the MUFG Revolving Credit Facility on May 7, 2019 with MUFG Union Bank N.A.Ltd., as administrative agent (the “Administrative Agent”), lead arranger, letter of credit issuer and a lender.
32
Subject to availability under the “Borrowing Base,” the maximum principal amount of the MUFG Revolving Credit Facility was $175.00$50.05 million as of JuneSeptember 30, 2019.2023. The Borrowing Base is calculated based on the unfunded capital commitments of the investors meeting various eligibility requirements (subject to investor concentration limits) multiplied by specified advance rates. We have the ability to increase the maximum principal amount of the Revolving Credit Facility up to $500.00 million, subject to increasing commitments of existing lenders and/or obtaining commitments of new lenders and certain other conditions. The stated maturity date of the MUFG Revolving Credit Facility is May 7, 2021.November 3, 2023, which may be extended by us exercising our committed 6-month extension option. Subsequent to the three months ended September 30, 2023, we exercised our option to extend the maturity of the MUFG Revolving Credit Facility. See “Recent Developments”.
Under the MUFG Revolving Credit Facility, we have the ability to elect, for loans denominated in U.S. Dollars, either LIBORTerm SOFR with a one-, three- or, if available, six-month tenor or the alternative base rate at the time of draw-down (and with respect to loans denominated in non-U.S. Dollar currencies, the applicable benchmark specified in the MUFG Revolving Credit Facility), and loans denominated in U.S. Dollars may be converted from one rate to another at any time, subject to certain conditions. InterestThe interest rate on obligations under the MUFG Revolving Credit Facility is (A) Term SOFR plus a credit spread adjustment for the prevailing LIBOR for one, two, three or six months (the “Applicable LIBOR”)applicable tenor (or other listed offered rate, depending upon the currency of borrowing) plus 2.25%2.75% per annum or (B) an alternatealternative base rate (the greatergreatest of the prime rate of such commercial bank,set by MUFG Bank, Ltd., the federal funds rate plus 0.50%, and LIBORTerm SOFR with a one-month tenor plus 1.00%) (“ABR”)) plus 1.15%1.75% per annum. We pay a 0.25%0.35% annualized fee on a quarterly basis on committed but undrawn amounts under the MUFG Revolving Credit Facility.
Amounts drawnFor further details, see Note 6 “Debt – MUFG Revolving Credit Facility” to our consolidated financial statements included in this report.
JPM Revolving Credit Facility
On September 24, 2020, Goldman Sachs Private Middle Market Credit II SPV II LLC (“SPV”) entered into the JPM Revolving Credit Facility. JPMorgan Chase Bank, National Association (“JPM”) serves as administrative agent, U.S. Bank Trust Company, National Association serves as collateral agent and collateral administrator, U.S. Bank National Association serves as securities intermediary and the Company serves as portfolio manager under the JPM Revolving Credit Facility. The Company amended the JPM Revolving Credit Facility may be prepaidon numerous occasions between February 12, 2021 and September 14, 2023.
Borrowings under the JPM Revolving Credit Facility bear interest (at SPV’s election) at any time without premium or penalty, subjecta per annum rate equal to (x) Term SOFR (or the applicable breakage costs. Loans are subject to mandatory prepaymentbenchmark for amounts exceedingloans denominated in non-U.S. Dollar currencies) plus a credit spread adjustment of 0.15% (or other listed offered rate, depending upon the Borrowing Base or the lenders’ aggregate commitmentcurrency of borrowing) in effect and, (y) to the extent requiredTerm SOFR is unavailable, a rate per annum equal to comply with the Investment Company Act, as appliedgreater of (i) the prime rate of JPM in effect on such day and (ii) the Federal Funds Effective Rate in effect on such day plus 0.50%, in each case, plus the applicable margin. The applicable margin is 2.55% per annum, after giving effect to BDCs. Transfersthe amendment dated September 14, 2023. SPV will also pay a commitment fee of interests0.55% per annum on the average daily unused amount of the financing commitments until the last day of the reinvestment period (as defined in the Company by investors are subject to certain restrictions under theJPM Revolving Credit FacilityFacility), and may trigger mandatory prepayment obligations.
an administrative fee of 0.20% per annum on the total commitment. The JPM Revolving Credit Facility is a multicurrency facility. As of September 30, 2023, the total commitments under the JPM Revolving Credit Facility were $1,650.00 million. The JPM Revolving Credit Facility also has an accordion feature, subject to the satisfaction of various conditions, which could bring total commitments under the JPM Revolving Credit Facility to $2,000.00 million. All amounts outstanding under the JPM Revolving Credit Facility must be repaid by the sixth anniversary of the JPM Revolving Credit Facility, subject to a six-month extension of the maturity date with the consent of the administrative agent at that time.
SPV’s obligations to the lenders under the JPM Revolving Credit Facility are secured by a perfected first priority security interest in the unfunded capital commitmentsall of our investors (with certain exceptions)SPV’s portfolio of investments and the proceeds thereof, including an assignmentcash. The obligations of the right to make capital calls, receive and apply capital contributions, and enforce remedies and claims related thereto, and a pledge of the collateral account into which capital call proceeds are deposited. Additionally,SPV under the JPM Revolving Credit Facility are non-recourse to us, and our exposure under the lenders can directly require investorsJPM Revolving Credit Facility is limited to the value of our investment in SPV.
For further details, see Note 6 “Debt – JPM Revolving Credit Facility” to our consolidated financial statements included in this report.
54
Off-Balance Sheet Arrangements
We may become a party to investment commitments and to financial instruments with off-balance sheet risk in the normal course of our business to fund their capitalinvestments and to meet the financial needs of our portfolio companies. These instruments may include commitments but lenders cannot seek recourse against a Unitholderto extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of such Unitholder’s obligationthe amount recognized in the balance sheet. As of September 30, 2023, we believed that we had adequate financial resources to contribute capitalsatisfy our unfunded commitments. Our unfunded commitments to us.provide funds to portfolio companies were as follows:
The Revolving Credit Facility contains customary representations, warranties, and affirmative and negative covenants, including without limitation, treatment as a RIC under the Code and as a BDC under the Investment Company Act and restrictions on our ability to make certain distributions. The Revolving Credit Facility includes customary conditions precedent to draw-down of loans and customary events of default. We are in compliance with these covenants.
|
| As of |
| |||||
|
| September 30, 2023 |
|
| December 31, 2022 |
| ||
|
| (in millions) |
| |||||
Unfunded Commitments |
|
|
|
|
|
| ||
First Lien/Senior Secured Debt |
| $ | 269.76 |
|
| $ | 347.48 |
|
First Lien/Last-Out Unitranche |
|
| 4.35 |
|
|
| 5.97 |
|
Total |
| $ | 274.11 |
|
| $ | 353.45 |
|
HEDGING
Subject to applicable provisions of the Investment Company Act and applicable Commodity Futures Trading Commission (“CFTC”) regulations, we may enter into hedging transactions in a manner consistent with SEC guidance. To the extent that any of our loans are denominated in a currency other than U.S. dollars, we may enter into currency hedging contracts to reduce our exposure to fluctuations in currency exchange rates. We may also enter into interest rate hedging agreements. Such hedging activities, which will be subject to compliance with applicable legal requirements, may include the use of futures, options, swaps and forward contracts. Costs incurred in entering into such contracts or in settling them, if any, will be borne by us. Our Investment Adviser has claimedno-action relief from CFTC registration and regulation as a commodity pool operator pursuant to a CFTC staffno-action letter (the “BDC CFTCNo-Action Letter”)Rule 4.5 with respect to our operations, with the result that we will be limited in our ability to use futures contracts or options on futures contracts or engage in swap transactions. Specifically, the BDC CFTCNo-Action Letter Rule 4.5 imposes strict limitations on using such derivatives other than for hedging purposes, whereby the use of derivatives not used solely for hedging purposes is generally limited to situations where (i) the aggregate initial margin and premiums required to establish such positions does not exceed five percent of the liquidation value of our portfolio, after taking into account unrealized profits and unrealized losses on any such contracts it has entered into; or (ii) the aggregate net notional value of such derivatives does not exceed 100% of the liquidation value of our portfolio. Moreover, we anticipate entering into transactions involving such derivatives to a very limited extent solely for hedging purposes or otherwise within the limitations of CFTC Rule 4.5.
In August 2022, Rule 18f-4 under the Investment Company Act, regarding the ability of a BDC (or a RIC) to use derivatives and other transactions that create future payment or delivery obligations (including reverse repurchase agreements and similar financing transactions), became effective. Under the newly adopted rule, BDCs that make significant use of derivatives are subject to a value-at-risk leverage limit, a derivatives risk management program, testing requirements and requirements related to board reporting. These new requirements will apply unless the BDC CFTCNo-Action Letter.
33
OFF-BALANCE SHEET ARRANGEMENTS
Wequalifies as a “limited derivatives user,” as defined under the adopted rules. Under the new rule, a BDC may becomeenter into an unfunded commitment agreement that is not a partyderivatives transaction, such as an agreement to investment commitmentsprovide financing to a portfolio company, if the BDC has, among other things, a reasonable belief, at the time it enters into such an agreement, that it will have sufficient cash and to financial instruments withoff-balance sheet risk in the normal course of our business to fund investments andcash equivalents to meet its obligations with respect to all of its unfunded commitment agreements, in each case as it becomes due. Under the financial needs of our portfolio companies. These instruments may include commitmentsfinal rule, when we trade reverse repurchase agreements or similar financing transactions, including certain tender option bonds, we need to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess ofaggregate the amount recognized in the balance sheet. As of June 30, 2019 we believed that we had adequateany other senior securities representing indebtedness (e.g., bank borrowings, if applicable) when calculating our asset coverage ratio. We currently operate as a “limited derivatives user” and these requirements may limit our ability to use derivatives and/or enter into certain other financial resources to satisfy our unfunded commitments. As of June 30, 2019 our unfunded commitments to provide funds to portfolio companies were as follows:contracts.
As of June 30, 2019 | ||||
(in millions) | ||||
Unfunded Commitments | ||||
First Lien/Senior Secured Debt | $ | 9.81 | ||
|
| |||
Total | $ | 9.81 | ||
|
|
As of June 30, 2019, we had aggregate Commitments and undrawn Commitments from investors as follows:
June 30, 2019 | ||||||||||||
Capital Commitments ($ in millions) | Unfunded Capital Commitments ($ in millions) | % of Capital Commitments Funded | ||||||||||
Common Units | $ | 806.62 | $ | 722.21 | 10 | % |
RECENT DEVELOPMENTS
On July 16, 2019, we entered into subscription agreements with investors providing additional capital commitments of $75.50 million. When combined with capital commitments made to us as of June 30, 2019, total capital commitments were $882.12 million.
On July 23, 2019, we delivered a capital drawdown notice to certain of our investors relating to the sale of 306,641 common Units for an aggregate offering price of approximately $30.27 million. The common Units were issued on July 30, 2019.
On July 31, 2019, we entered into the first amendment to the Revolving Credit Facility pursuant to which we agreed to certain amendments to the Revolving Credit Facility and Western Alliance Bank agreed to become a lender with a $100.00 million commitment under the accordion feature in our Revolving Credit Facility. Effective July 31, 2019, aggregate commitments under our Revolving Credit Facility are $275.00 million.
CRITICAL ACCOUNTING POLICIES
Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ materially. In addition to the discussion below,
For a description of our critical accounting policies, are further described in the notes to the financial statements.
Valuation of Portfolio Investments
As a BDC, we conduct the valuation of our assets, pursuant to which our NAV is determined, consistent with GAAP and the Investment Company Act. Our Board of Directors, with the assistance of our Audit Committee, determines the fair value of our assets within the meaning of the Investment Company Act, on at least a quarterly basis, in accordance with the terms of Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement and Disclosures (“ASC 820”).
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ASC 820 defines fair value as 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. Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same—to estimate the price when an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).
ASC 820 establishes a hierarchal disclosure framework which ranks the observability of inputs used in measuring financial instruments at fair value. The observability of inputs is impacted by a number of factors, including the type of financial instruments and their specific characteristics. Financial instruments with readily available quoted prices, or for which fair value can be measured from quoted prices in active markets, generally will have a higher degree of market price observability and a lesser degree of judgment applied in determining fair value. The levels used for classifying investments are not necessarily an indication of the risk associated with investing in these securities.
The three-level hierarchy for fair value measurement is defined as follows:
Level 1—inputs to the valuation methodology are quoted prices available in active markets for identical instruments as of the reporting date. The types of financial instruments included in Level 1 include unrestricted securities, including equities and derivatives, listed in active markets.
Level 2—inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date. The type of financial instruments in this category includes less liquid and restricted securities listed in active markets, securities traded in other than active markets, government and agency securities, and certainover-the-counter derivatives where the fair value is based on observable inputs.
Level 3—inputs to the valuation methodology are unobservable and significant to overall fair value measurement. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category include investments in privately held entities and certainover-the-counter derivatives where the fair value is based on unobservable inputs.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and considers factors specific to the financial instrument.
Currently, the majority of our investments fall within Level 3 of the fair value hierarchy. We do not expect that there will be readily available market values for most of the investments which are in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our Board of Directors using a documented valuation policy, described below, and a consistently applied valuation process. The factors that may be taken into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, and the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. Available current market data are considered such as applicable market yields and multiples of publicly traded securities, comparison of financial ratios of peer companies, and changes in the interest rate environment and the credit markets that may affect the price at which similar investments would trade in their principal market, and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation.
With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, the valuation procedures adopted by our Board of Directors contemplates a multi-step valuation process each quarter, as described below:
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When our NAV is determined other than on aquarter-end (such as in connection with issuances of Units on dates occurringmid-quarter), it is determined by our Investment Adviser, acting under delegated authority from, and subject to the supervision of, our Board of Directors and in accordance with procedures adopted by our Board of Directors.
Investment Transactions and Related Investment Income
We record our investment transactions on a trade date basis, which is the date when we assume the risks for gains and losses related to that instrument. Realized gains and losses are based on the specific identification method. Dividend income on common equity investments is recorded on the record date for private portfolio companies or on theex-dividend date for publicly traded portfolio companies. Interest income and dividend income are presented net of withholding tax, if any. Accretion of discounts and amortization of premiums, which are included in interest income and expense, are recorded over the life of the underlying instrument using the effective interest method.
Fair value generally is based on quoted market prices, broker or dealer quotations, or alternative price sources. In the absence of quoted market prices, broker or dealer quotations, or alternative price sources, investments in securities are measured at fair value as determined by our Investment Adviser and/or by one or more independent third parties.
Due to the inherent uncertainties of valuation, certain estimated fair values may differ significantly from the values that would have been realized had a ready market for these investments existed, and these differences could be material. For additional information, see Note 2 “Significant Accounting Policies” to our consolidated financial statements included in this report.
We may also invest in newly-issued debt securities that are sold by issuers with an OIDconsider the most significant accounting policies to par value of 1% to 3%, although we do not expect OID securities to comprise a material portion of our portfolio. To the extent we purchase new issues with OID, the discounts will be accreted over the life of the securities, as required under GAAP. Loan origination fees, OID and market discounts or premiums are capitalized, and we accrete or amortize such amounts into income over the life of the loan. We record contractual prepayment premiums on loans and debt securities as interest income.
Non-Accrual Status
Investments are placed onnon-accrual status when it is probable that principal, interest or dividends will not be collected according to contractual terms. Accrued interest or dividends generally are reversed when an investment is placed onnon-accrual status. Interest or dividend payments received onnon-accrual investments may be recognized as income or applied to principal depending upon management’s judgment.Non-accrual investments are restored to accrual status when past due principal and interest or dividends are paid and, in management’s judgment, principal and interest or dividend payments are likely to remain current. We may make exceptions to this treatment if the investment has sufficient collateral value and is in the process of collection. As of June 30, 2019, we had no investments onnon-accrual status.
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Distribution Policy
We intend to pay quarterly distributionsthose related to our Unitholders outValuation of assets legally available for distribution. Future quarterly distributions, ifPortfolio Investments, Revenue Recognition, Non-Accrual Investments, Distribution Policy, and Income Taxes.
RECENT DEVELOPMENTS
On September 7, 2023, David Pessah notified us of his intention to resign as our Chief Financial Officer, Treasurer and principal accounting officer to pursue a new professional opportunity. Effective November 10, 2023, Mr. Pessah will cease serving as our Chief Financial Officer, Treasurer and principal accounting officer. Mr. Pessah’s resignation was not the result of any disagreement with us.
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On September 25, 2023, the Board of Directors appointed Stanley Matuszewski as our Chief Financial Officer and Treasurer and John Lanza as our principal accounting officer, each effective November 10, 2023.
To assist in an orderly transition, Mr. Pessah will be determined bycontinue to serve in his current roles during the transition period, until Mr. Matuszewski and Mr. Lanza each assume their respective roles on November 10, 2023.
On October 5, 2023, we exercised the option to extend the maturity on the MUFG Revolving Credit Facility to May 3, 2024.
On November 1, 2023, our Board of Directors. All distributions will be subject to lawfully available funds therefor, and no assurance can be given that we will be able to declare distributions in future periods.
We intend to elect to be treated, and expect to qualify annually, as a RIC under Subchapter M of the Code, commencing with our taxable year ending December 31, 2019. To qualify for and maintain our tax treatment as a RIC, we must, among other things, timely distribute to our Unitholders at least 90% of our investment company taxable income for each taxable year. We intend to timely distribute to our Unitholders substantially all of our annual taxable income for each year, except that we may retain certain net capital gains for reinvestment and carry forward taxable income for distribution in the following year and pay any applicable tax. The distributions we pay to our Unitholders in a year may exceed our net ordinary income and capital gains for that year and, accordingly, a portion of such distributions may constitute a return of capital for U.S. federal income tax purposes. The specific tax characteristics of our distributions will be reported to Unitholders after the end of the calendar year. Unitholders should read carefully any written disclosure regardingDirectors declared a distribution from us and should not assume thatequal to an amount up to the source of any distribution is our net ordinary income or capital gains.
Federal Income Taxes
As a RIC, we generally will not be required to pay corporate-level U.S. federal income taxes on any net ordinary income or capital gains that we timely distribute to our Unitholders as dividends. To maintain our RIC status, we must meet specifiedsource-of-income and asset diversification requirements and timely distribute to our Unitholders at least 90% of our investment companyCompany’s taxable income for each year. Depending upon the level of taxable income earned in a year, we may choose to carry forward taxable income for distribution in the following year and pay any applicable tax. We generally will be required to pay a U.S. federal excise tax if our distributions during a calendar year do not exceed the sum of (1) 98% of our net ordinary income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gains in excess of capital losses for theone-year period ending on October 31 of the calendar year and (3) any net ordinary income and capital gains in excess of capital losses for preceding years that were not distributed during such years.
Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ fromearnings per unit, including net investment income and realized gains recognized(if positive) for financial reporting purposes. Differences may be permanentthe period July 1, 2023 through September 30, 2023, payable on or temporary. Permanent differences are reclassified among capital accounts in the financial statementsabout November 27, 2023 to reflect their tax character. Temporary differences arise when certain itemsUnitholders of income, expense, gain or loss are recognized at some time in the future. Differences in classification may also result from the treatmentrecord as of short-term gains as ordinary income for tax purposes.October 3, 2023.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are subject to financial market risks, most significantly changes in interest rates. Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we expect to fund a portion of our investments with borrowings, our net investment income is expected to be affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.
As of JuneSeptember 30, 2019,2023 and December 31, 2022, on a fair value basis, 100.0% and 100.0% of our performing debt investments bore interest at a floating rate. Our borrowings under the Revolving Credit FacilityFacilities bear interest at a floating rate.
We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities.
Based on our JuneSeptember 30, 2019 balance sheet,2023 Consolidated Statements of Financial Condition, the following table shows the annual impact on net income of base rate changes in interest rates (considering interest rate floors for variable rate instruments) assuming no changes in our investment and borrowing structure:
As of June 30, 2019 Basis Point Change | Interest Income | Interest Expense | Net Income | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
As of September 30, 2023 |
| Interest |
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| Interest |
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| Net |
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($ in millions) |
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Up 300 basis points | $ | 2.40 | $ | (2.27 | ) | $ | 0.13 |
| $ | 61.89 |
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| $ | (33.46 | ) |
| $ | 28.43 |
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Up 200 basis points | 1.60 | (1.51 | ) | 0.09 |
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| 41.26 |
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| (22.31 | ) |
|
| 18.95 |
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Up 100 basis points | 0.80 | (0.76 | ) | 0.04 |
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| 20.63 |
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| (11.15 | ) |
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| 9.48 |
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Up 75 basis points | 0.60 | (0.57 | ) | 0.03 |
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| 15.47 |
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| (8.36 | ) |
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| 7.11 |
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Up 50 basis points | 0.40 | (0.38 | ) | 0.02 |
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| 10.32 |
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| (5.58 | ) |
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| 4.74 |
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Up 25 basis points | 0.20 | (0.19 | ) | 0.01 |
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| 5.16 |
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| (2.79 | ) |
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| 2.37 |
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Down 25 basis points | (0.20 | ) | 0.19 | (0.01 | ) |
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| (5.16 | ) |
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| 2.79 |
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| (2.37 | ) | |||||||
Down 50 basis points | (0.40 | ) | 0.38 | (0.02 | ) |
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| (10.32 | ) |
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| 5.58 |
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| (4.74 | ) | |||||||
Down 75 basis points | (0.60 | ) | 0.57 | (0.03 | ) |
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| (15.47 | ) |
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| 8.36 |
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| (7.11 | ) | |||||||
Down 100 basis points | (0.80 | ) | 0.76 | (0.04 | ) |
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| (20.63 | ) |
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| 11.15 |
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| (9.48 | ) | |||||||
Down 200 basis points | (1.19 | ) | 1.51 | 0.32 |
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| (41.26 | ) |
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| 22.31 |
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| (18.95 | ) | ||||||||
Down 300 basis points | (1.23 | ) | 1.82 | 0.59 |
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| (61.89 | ) |
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| 33.46 |
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| (28.43 | ) |
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We may, in the future, hedge against interest rate fluctuations by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the Investment Company Act, applicable CFTC regulations and in a manner consistent with SEC guidance. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates.
Inflation is likely to continue in the near to medium-term, particularly in the United States, with the possibility that monetary policy will continue to tighten in response. Persistent inflationary pressures could affect our portfolio companies’ profit margins.
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ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures.Procedures. As of the end of the period covered by this report, our management carried out an evaluation, under the supervision and with the participation of our ChiefCo-Chief Executive OfficerOfficers and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation, our ChiefCo-Chief Executive OfficerOfficers and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of JuneSeptember 30, 2019.2023. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Changes in Internal Control over Financial Reporting.Reporting. There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter ended JuneSeptember 30, 20192023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II –II. OTHER INFORMATION
Item 1. Legal Proceedings.LEGAL PROCEEDINGS
From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under loans to or other contracts with our portfolio companies. We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us.
Item 1A. Risk Factors.RISK FACTORS
An investment in our securities involves a high degree of risk. Except as set forth below, there have been no material changes to the risk factors previously reported under Item 1A:1A. “Risk Factors” of Amendment No. 1 to our Registration Statementannual report on Form 1010-K for the year ended December 31, 2022, which was filed with the SEC on June 21, 2019.March 2, 2023. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may materially affect our business, financial condition and/or operating results.
WeOur business and the businesses of our portfolio companies are exposed to risksdependent on bank relationships and recent concerns associated with changesthe banking system may adversely impact us.
The financial markets recently experienced volatility in interest rates.
Our debt investmentsconnection with concerns that some banks, especially small and regional banks, may have significant investment-related losses that might make it difficult to fund demands to withdraw deposits and other liquidity needs. Although the federal government announced measures to assist certain banks and protect depositors, some banks had already been impacted and others may be based on floating rates,adversely impacted, by such as LIBOR,volatility. Our business and the Euro Interbank Offered Rate, the Federal Funds Rate or the Prime Rate. General interest rate fluctuations may have a substantial negative impact on our investments, the valuebusinesses of our securities and our rate of returnportfolio companies are dependent on invested capital. Currently, most of our floating rate investments are linkedbank relationships. We continue to LIBOR and it is unclear how increased regulatory oversight and changes in the method for determining LIBOR may affect the value ofmonitor the financial obligations to be held by or issued to us that are linked to LIBOR, or how such changes could affect ourhealth of these relationships. Any further strain on the banking system may adversely impact the business, financial condition and results of operations or financial condition. For example, on July 27, 2017, the U.K. Financial Conduct Authority announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021. At this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or any other reforms to LIBOR that may be enacted in the United Kingdom or elsewhere. The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-linked securities, loans,us and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations. In addition, if LIBOR ceases to exist, we may need to renegotiate the credit agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established, which may have an adverse effect on our overall financial condition or results of operations. Following the replacement of LIBOR, some or all of these credit agreements may bear interest a lower interest rate, which could have an adverse impact on our results of operations. Moreover, if LIBOR ceases to exist, we may need to renegotiate certain terms of our Revolving Credit Facility. If we are unable to do so, amounts drawn under the Revolving Credit Facility may bear interest at a higher rate, which would increase the cost of our borrowings and, in turn, affect our results of operations.companies.
Because we have borrowed money, and may issue preferred stock to finance investments, our net investment income depends, in part, upon the difference between the rate at which we borrow funds or pay distributions on preferred stock and the rate that our investments yield. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.
A reduction in the interest rates on new investments relative to interest rates on current investments could also have an adverse impact on our net interest income. However, an increase in interest rates could decrease the value of any investments we hold which earn fixed interest rates, including subordinated loans, senior and junior secured and unsecured debt securities and loans and high yield bonds, and also could increase our interest expense, thereby decreasing our net income. Also, an increase in interest rates available to investors could make an investment in our common stock less attractive if we are not able to increase our dividend rate, which could reduce the value of our common stock. Further, rising interest rates could also adversely affect our performance if such increases cause our borrowing costs to rise at a rate in excess of the rate that our investments yield.
Further, rising interest rates could also adversely affect our performance if we hold investments with floating interest rates, subject to specified minimum interest rates (such as a LIBOR floor), while at the same time engaging in borrowings subject to floating interest rates not subject to such minimums. In such a scenario, rising interest rates may increase our interest expense, even though our interest income from Investments is not increasing in a corresponding manner as a result of such minimum interest rates.
In periods of rising interest rates, to the extent we borrow money subject to a floating interest rate, our cost of funds would increase, which could reduce our net investment income. Further, rising interest rates could also adversely affect our performance if we hold investments with floating interest rates, subject to specified minimum interest rates (such as a LIBOR floor), while at the same time engaging in borrowings subject to floating interest rates not subject to such minimums. In such a scenario, rising interest rates may increase our interest expense, even though our interest income from investments is not increasing in a corresponding manner as a result of such minimum interest rates.
If general interest rates rise, there is a risk that the portfolio companies in which we hold floating rate securities will be unable to pay escalating interest amounts, which could result in a default under their loan documents with us. Rising interest rates could also cause portfolio companies to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults. In addition, rising interest rates may increase pressure on us to provide fixed rate loans to our portfolio companies, which could adversely affect our net investment income, as increases in our cost of borrowed funds would not be accompanied by increased interest income from such fixed-rate investments.
A change in the general level of interest rates can be expected to lead to a change in the interest rate we receive on many of our debt investments. Accordingly, a change in the interest rate could make it easier for us to meet or exceed the performance threshold in the Investment Management Agreement and may result in a substantial increase in the amount of incentive fees payable to our Investment Adviser with respect to the portion of the Incentive Fee based on income.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES
The following table summarizes the total Units issued and proceeds related to capital drawdowns delivered pursuant to the Subscription Agreements for the period from April 11, 2019 (commencement of operations) to June 30, 2019:drawdowns:
Unit Issue Date |
| Units Issued |
|
| Proceeds |
| ||
For the Nine Months Ended September 30, 2023 |
|
|
|
|
|
| ||
May 30, 2023 |
|
| 160,166 |
|
| $ | 14.76 |
|
Total capital drawdowns |
|
| 160,166 |
|
| $ | 14.76 |
|
For the Nine Months Ended September 30, 2022 |
|
|
|
|
|
| ||
June 21, 2022 |
|
| 1,069,872 |
|
| $ | 103.31 |
|
August 23, 2022 |
|
| 1,564,324 |
|
|
| 147.58 |
|
Total capital drawdowns |
|
| 2,634,196 |
|
| $ | 250.89 |
|
Unit Issue Date | Units Issued | Proceeds ($ in millions) | ||||
May 3, 2019 | 324,643 | $ | 32.47 | |||
June 21, 2019 | 524,568 | 51.94 | ||||
Total capital drawdowns | 849,211 | $ | 84.41 |
Each of the above issuances and sales of the common Units was exempt from the registration requirements of the Securities Act pursuant to Section 4(a)(2) of the Securities Act and Regulation D or Regulation S under the Securities Act. Each purchaser of common Units was required to represent that it is (i) either an “accredited investor” as defined in Rule 501 of Regulation D under the Securities Act or, in the case of Units sold outside the United States, not a “U.S. person” in accordance with Regulation S of the Securities Act and (ii) was acquiring the common Units purchased by it for investment and not with a view to resell or distribute. We did not engage in general solicitation or advertising, and did not offer securities to the public, in connection with such issuances and sales.
Item 3. Defaults Upon Senior Securities.DEFAULTS UPON SENIOR SECURITIES
Not applicable.
Item 4. Mine Safety Disclosures.MINE SAFETY DISCLOSURES
Not applicable.
Item 5. Other Information.OTHER INFORMATION
None.
The exhibits filed as part of this Quarterly Report on Form10-Q are set forth on the Index to Exhibits, which is incorporated herein by reference.
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INDEX TO EXHIBITS
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EXHIBIT NO. | EXHIBIT | ||
3.1 | |||
3.2 | |||
10.1 | |||
31.1* | |||
31.2* | |||
31.3* | |||
32.1* | |||
32.2* | |||
32.3* | |||
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document | ||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | ||
101 CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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* Filed herewith.
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59
Table of ContentsSIGNATURES
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.
GOLDMAN SACHS PRIVATE MIDDLE MARKET CREDIT II LLC | |||||||||||
Date: | /s/ | ||||||||||
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| Name: Alex Chi | |||||||||
Title: Co-Chief Executive Officer and
| |||||||||||
(Co-Principal Executive Officer) | |||||||||||
Date: November 7, 2023 |
| /s/ David Miller | |||||||||
Name: David Miller | |||||||||||
Title: Co-Chief Executive Officer and Co-President | |||||||||||
(Co-Principal Executive Officer) | |||||||||||
Date: November 7, 2023 | /s/ David Pessah | ||||||||||
David Pessah | |||||||||||
Chief Financial Officer and Treasurer | |||||||||||
(Principal Financial Officer) |
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