x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 83-0423116 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
1521 WESTBRANCH DRIVE, SUITE 100 | 22102 | |||||||
MCLEAN, VIRGINIA | ||||||||
(Address of principal executive offices) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Common Stock, $0.001 par value per share | GAIN | The Nasdaq Stock Market LLC | ||||||||||||
5.00% Notes due 2026 | ||||||||||||||
The Nasdaq Stock Market LLC | ||||||||||||||
4.875% Notes due 2028 | ||||||||||||||
The Nasdaq Stock Market LLC |
Large accelerated filer | o | Accelerated filer | ||||||||||||
Non-accelerated filer | x | Smaller reporting company | ||||||||||||
o | ||||||||||||||
Emerging growth company | o |
Consolidated Statements of Operations for the three and nine months ended | ||||||||||||
Consolidated Statements of Changes in Net Assets for the three and nine months ended | ||||||||||||
Consolidated Statements of Cash Flows for the | ||||||||||||
Consolidated Schedules of Investments as of | ||||||||||||
June 30, 2021 | March 31, 2021 | |||||||
ASSETS | ||||||||
Investments at fair value | ||||||||
Non-Control/Non-Affiliate investments (Cost of $307,652 and $297,400, respectively) | $ | 325,375 | $ | 298,222 | ||||
Affiliate investments (Cost of $328,650 and $341,651, respectively) | 324,185 | 307,977 | ||||||
Control investments (Cost of $24,512 and $24,512, respectively) | 29,034 | 27,630 | ||||||
Cash and cash equivalents | 26,796 | 2,062 | ||||||
Restricted cash and cash equivalents | 481 | 336 | ||||||
Interest receivable | 2,563 | 3,369 | ||||||
Due from administrative agent | 1,823 | 1,164 | ||||||
Deferred financing costs, net | 1,299 | 1,359 | ||||||
Other assets, net | 1,636 | 1,612 | ||||||
|
|
|
| |||||
TOTAL ASSETS | $ | 713,192 | $ | 643,731 | ||||
|
|
|
| |||||
LIABILITIES | ||||||||
Borrowings: | ||||||||
Line of credit at fair value (Cost of $41,900 and $22,400, respectively) | $ | 41,900 | $ | 22,400 | ||||
Notes payable, net | 124,057 | 123,883 | ||||||
Secured borrowing | 5,096 | 5,096 | ||||||
|
|
|
| |||||
Total borrowings | 171,053 | 151,379 | ||||||
Mandatorily redeemable preferred stock, $0.001 par value per share, $25.00 liquidation preference per share; 5,990,000 shares authorized; 3,774,853 shares issued and outstanding, net | 92,332 | 92,209 | ||||||
Accounts payable and accrued expenses | 1,464 | 563 | ||||||
Interest payable | 1,162 | 591 | ||||||
Fees due to Adviser(A) | 25,409 | 15,664 | ||||||
Fee due to Administrator(A) | 671 | 577 | ||||||
Other liabilities | 563 | 384 | ||||||
|
|
|
| |||||
TOTAL LIABILITIES | $ | 292,654 | $ | 261,367 | ||||
|
|
|
| |||||
Commitments and contingencies(B) | ||||||||
NET ASSETS | $ | 420,538 | $ | 382,364 | ||||
|
|
|
| |||||
ANALYSIS OF NET ASSETS | ||||||||
Common stock, $0.001 par value per share, 100,000,000 shares authorized, 33,205,023 shares issued and outstanding | $ | 33 | $ | 33 | ||||
Capital in excess of par value | 400,223 | 400,796 | ||||||
Cumulative net unrealized appreciation (depreciation) of investments | 17,780 | (29,734 | ) | |||||
(Overdistributed) underdistributed net investment income | (7,190 | ) | 2,592 | |||||
Accumulated net realized gain in excess of distributions | 9,692 | 8,677 | ||||||
|
|
|
| |||||
Total distributable earnings | 20,282 | (18,465 | ) | |||||
|
|
|
| |||||
TOTAL NET ASSETS | $ | 420,538 | $ | 382,364 | ||||
|
|
|
| |||||
NET ASSET VALUE PER SHARE | $ | 12.66 | $ | 11.52 | ||||
|
|
|
|
|
|
December 31, 2021 | March 31, 2021 | ||||||||||
ASSETS | |||||||||||
Investments at fair value | |||||||||||
Non-Control/Non-Affiliate investments (Cost of $385,819 and $297,400, respectively) | $ | 424,918 | $ | 298,222 | |||||||
Affiliate investments (Cost of $289,737 and $341,651, respectively) | 275,820 | 307,977 | |||||||||
Control investments (Cost of $620 and $24,512, respectively) | — | 27,630 | |||||||||
Cash and cash equivalents | 27,950 | 2,062 | |||||||||
Restricted cash and cash equivalents | 694 | 336 | |||||||||
Interest receivable | 2,755 | 3,369 | |||||||||
Due from administrative agent | 1,807 | 1,164 | |||||||||
Deferred financing costs, net | 1,030 | 1,359 | |||||||||
Other assets, net | 1,121 | 1,612 | |||||||||
TOTAL ASSETS | $ | 736,095 | $ | 643,731 | |||||||
LIABILITIES | |||||||||||
Borrowings: | |||||||||||
Line of credit at fair value (Cost of $0 and $22,400, respectively) | $ | — | $ | 22,400 | |||||||
Notes payable, net | 255,939 | 123,883 | |||||||||
Secured borrowing | 5,096 | 5,096 | |||||||||
Total borrowings | 261,035 | 151,379 | |||||||||
Mandatorily redeemable preferred stock, $0.001 par value per share, $25.00 liquidation preference per share; 0 and 5,990,000 shares authorized; 0 and 3,774,853 shares issued and outstanding, respectively, net | — | 92,209 | |||||||||
Accounts payable and accrued expenses | 1,346 | 563 | |||||||||
Interest payable | 2,263 | 591 | |||||||||
Fees due to Adviser(A) | 29,605 | 15,664 | |||||||||
Fee due to Administrator(A) | 537 | 577 | |||||||||
Other liabilities | 720 | 384 | |||||||||
TOTAL LIABILITIES | $ | 295,506 | $ | 261,367 | |||||||
Commitments and contingencies(B) | |||||||||||
NET ASSETS | $ | 440,589 | $ | 382,364 | |||||||
ANALYSIS OF NET ASSETS | |||||||||||
Common stock, $0.001 par value per share, 100,000,000 shares authorized, 33,205,023 shares issued and outstanding | $ | 33 | $ | 33 | |||||||
Capital in excess of par value | 397,950 | 400,796 | |||||||||
Cumulative net unrealized appreciation (depreciation) of investments | 25,182 | (29,734) | |||||||||
(Overdistributed) underdistributed net investment income | (9,022) | 2,592 | |||||||||
Accumulated net realized gain in excess of distributions | 26,446 | 8,677 | |||||||||
Total distributable earnings | 42,606 | (18,465) | |||||||||
TOTAL NET ASSETS | $ | 440,589 | $ | 382,364 | |||||||
NET ASSET VALUE PER SHARE | $ | 13.27 | $ | 11.52 |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
INVESTMENT INCOME | ||||||||
Interest income | ||||||||
Non-Control/Non-Affiliate investments | $ | 6,877 | $ | 5,964 | ||||
Affiliate investments | 8,831 | 4,348 | ||||||
Control investments | 284 | 209 | ||||||
Cash and cash equivalents | — | 4 | ||||||
|
|
|
| |||||
Total interest income | 15,992 | 10,525 | ||||||
Dividend income | ||||||||
Non-Control/Non-Affiliate investments | 2 | — | ||||||
|
|
|
| |||||
Total dividend income | 2 | — | ||||||
Success fee income | ||||||||
Non-Control/Non-Affiliate investments | — | 182 | ||||||
Affiliate investments | 2,032 | — | ||||||
|
|
|
| |||||
Total success fee income | 2,032 | 182 | ||||||
|
|
|
| |||||
Total investment income | 18,026 | 10,707 | ||||||
|
|
|
| |||||
EXPENSES | ||||||||
Base management fee(A) | 3,320 | 2,856 | ||||||
Loan servicing fee(A) | 1,868 | 1,709 | ||||||
Incentive fee(A) | 12,248 | (754 | ) | |||||
Administration fee(A) | 399 | 446 | ||||||
Interest expense on borrowings | 2,300 | 917 | ||||||
Dividends on mandatorily redeemable preferred stock | 1,504 | 2,102 | ||||||
Amortization of deferred financing costs and discounts | 456 | 374 | ||||||
Professional fees | 306 | 571 | ||||||
Other general and administrative expenses | 1,048 | 757 | ||||||
|
|
|
| |||||
Expenses before credits from Adviser | 23,449 | 8,978 | ||||||
|
|
|
| |||||
Credits to base management fee – loan servicing fee(A) | (1,868 | ) | (1,709 | ) | ||||
Credits to fees from Adviser—other(A) | (1,251 | ) | (735 | ) | ||||
|
|
|
| |||||
Total expenses, net of credits to fees | 20,330 | 6,534 | ||||||
|
|
|
| |||||
NET INVESTMENT (LOSS) INCOME | (2,304 | ) | 4,173 | |||||
|
|
|
| |||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss): | ||||||||
Non-Control/Non-Affiliate investments | 143 | 13 | ||||||
Affiliate investments | 1,786 | 740 | ||||||
|
|
|
| |||||
Total net realized gain | 1,929 | 753 | ||||||
Net unrealized appreciation (depreciation): | ||||||||
Non-Control/Non-Affiliate investments | 16,902 | (8,938 | ) | |||||
Affiliate investments | 29,208 | 1,358 | ||||||
Control investments | 1,404 | 2,693 | ||||||
|
|
|
| |||||
Total net unrealized appreciation (depreciation) | 47,514 | (4,887 | ) | |||||
|
|
|
| |||||
Net realized and unrealized gain (loss) | 49,443 | (4,134 | ) | |||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 47,139 | $ | 39 | ||||
|
|
|
|
|
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
INVESTMENT INCOME | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Non-Control/Non-Affiliate investments | $ | 8,240 | $ | 6,804 | $ | 22,524 | $ | 19,782 | |||||||||||||||
Affiliate investments | 5,100 | 5,123 | 20,609 | 14,087 | |||||||||||||||||||
Control investments | 3 | 220 | 500 | 639 | |||||||||||||||||||
Cash and cash equivalents | 1 | 1 | 1 | 5 | |||||||||||||||||||
Total interest income | 13,344 | 12,148 | 43,634 | 34,513 | |||||||||||||||||||
Dividend income | |||||||||||||||||||||||
Non-Control/Non-Affiliate investments | — | 908 | 3 | 908 | |||||||||||||||||||
Affiliate investments | — | 4,127 | 1,589 | 4,127 | |||||||||||||||||||
Total dividend income | — | 5,035 | 1,592 | 5,035 | |||||||||||||||||||
Success fee income | |||||||||||||||||||||||
Non-Control/Non-Affiliate investments | — | 189 | 1,650 | 371 | |||||||||||||||||||
Affiliate investments | 3,398 | — | 6,430 | — | |||||||||||||||||||
Total success fee income | 3,398 | 189 | 8,080 | 371 | |||||||||||||||||||
Total investment income | 16,742 | 17,372 | 53,306 | 39,919 | |||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Base management fee(A) | 3,630 | 3,116 | 10,527 | 8,961 | |||||||||||||||||||
Loan servicing fee(A) | 1,768 | 1,786 | 5,430 | 5,242 | |||||||||||||||||||
Incentive fee(A) | 2,587 | 3,756 | 22,186 | 3,454 | |||||||||||||||||||
Administration fee(A) | 437 | 382 | 1,407 | 1,218 | |||||||||||||||||||
Interest expense on borrowings | 3,918 | 1,092 | 9,300 | 3,064 | |||||||||||||||||||
Dividends on mandatorily redeemable preferred stock | — | 2,291 | 2,306 | 6,551 | |||||||||||||||||||
Amortization of deferred financing costs and discounts | 447 | 451 | 1,355 | 1,291 | |||||||||||||||||||
Professional fees | 444 | 322 | 1,093 | 1,147 | |||||||||||||||||||
Other general and administrative expenses | 562 | 496 | 2,735 | 2,031 | |||||||||||||||||||
Expenses before credits from Adviser | 13,793 | 13,692 | 56,339 | 32,959 | |||||||||||||||||||
Credits to base management fee – loan servicing fee(A) | (1,768) | (1,786) | (5,430) | (5,242) | |||||||||||||||||||
Credits to fees from Adviser - other(A) | (3,682) | (789) | (5,863) | (2,594) | |||||||||||||||||||
Total expenses, net of credits to fees | 8,343 | 11,117 | 45,046 | 25,123 | |||||||||||||||||||
NET INVESTMENT INCOME | 8,399 | 6,255 | 8,260 | 14,796 | |||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | |||||||||||||||||||||||
Net realized gain (loss): | |||||||||||||||||||||||
Non-Control/Non-Affiliate investments | 113 | 5,816 | 256 | 5,876 | |||||||||||||||||||
Affiliate investments | 21,936 | 3,289 | 24,186 | 4,603 | |||||||||||||||||||
Other | — | — | (1,998) | — | |||||||||||||||||||
Total net realized gain | 22,049 | 9,105 | 22,444 | 10,479 | |||||||||||||||||||
Net unrealized appreciation (depreciation): | |||||||||||||||||||||||
Non-Control/Non-Affiliate investments | 6,275 | (5,358) | 38,278 | (18,372) | |||||||||||||||||||
Affiliate investments | $ | (26,377) | 4,894 | 19,757 | 12,864 | ||||||||||||||||||
Control investments | — | 375 | (3,119) | 2,173 | |||||||||||||||||||
Total net unrealized (depreciation) appreciation | (20,102) | (89) | 54,916 | (3,335) | |||||||||||||||||||
Net realized and unrealized gain | 1,947 | 9,016 | 77,360 | 7,144 | |||||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 10,346 | $ | 15,271 | $ | 85,620 | $ | 21,940 | |||||||||||||||
BASIC AND DILUTED PER COMMON SHARE: | |||||||||||||||||||||||
Net investment income | $ | 0.25 | $ | 0.19 | $ | 0.25 | $ | 0.45 | |||||||||||||||
Net increase in net assets resulting from operations | $ | 0.31 | $ | 0.46 | $ | 2.58 | $ | 0.66 | |||||||||||||||
WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING: | |||||||||||||||||||||||
Basic and diluted | 33,205,023 | 33,205,023 | 33,205,023 | 33,167,511 |
(DOLLAR AMOUNTSCHANGES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
NET ASSETS
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
BASIC AND DILUTED PER COMMON SHARE: | ||||||||
Net investment (loss) income | $ | (0.07 | ) | $ | 0.13 | |||
|
|
|
| |||||
Net increase in net assets resulting from operations | $ | 1.42 | $ | — | ||||
|
|
|
| |||||
WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING: | ||||||||
Basic and diluted | 33,205,023 | 33,091,662 |
2021 | 2020 | ||||||||||
NET ASSETS, MARCH 31 | $ | 382,364 | $ | 369,031 | |||||||
OPERATIONS | |||||||||||
Net investment (loss) income | (2,304) | 4,173 | |||||||||
Net realized gain on investments | 1,929 | 753 | |||||||||
Net unrealized appreciation (depreciation) of investments | 47,514 | (4,887) | |||||||||
Net increase in net assets from operations | 47,139 | 39 | |||||||||
DISTRIBUTIONS(A) | |||||||||||
Distributions to common stockholders from net investment income ($0.20 and $0.28 per share, respectively) | (6,593) | (9,272) | |||||||||
Distributions to common stockholders from net realized gains ($0.07 and $0.02 per share, respectively) | (2,372) | (666) | |||||||||
Net decrease in net assets from distributions | (8,965) | (9,938) | |||||||||
CAPITAL ACTIVITY | |||||||||||
Issuance of common stock | — | 1,772 | |||||||||
Discounts, commissions, and offering costs for issuance of common stock | — | (35) | |||||||||
Net increase in net assets from capital activity | — | 1,737 | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 38,174 | (8,162) | |||||||||
NET ASSETS, JUNE 30 | $ | 420,538 | $ | 360,869 | |||||||
OPERATIONS | |||||||||||
Net investment income | $ | 2,165 | $ | 4,368 | |||||||
Net realized gain on investments | 464 | 621 | |||||||||
Net realized loss on other | (1,998) | — | |||||||||
Net unrealized appreciation of investments | 27,504 | 1,641 | |||||||||
Net increase in net assets from operations | 28,135 | 6,630 | |||||||||
DISTRIBUTIONS(A) | |||||||||||
Distributions to common stockholders from net investment income ($0.16 and $0.20 per share, respectively) | (5,490) | (6,553) | |||||||||
Distributions to common stockholders from net realized gains ($0.08 and $0.01 per share, respectively) | (2,482) | (420) | |||||||||
Net decrease in net assets from distributions | (7,972) | (6,973) | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 20,163 | (343) | |||||||||
NET ASSETS, SEPTEMBER 30 | $ | 440,701 | $ | 360,526 | |||||||
OPERATIONS | |||||||||||
Net investment income | $ | 8,399 | $ | 6,255 | |||||||
Net realized gain on investments | 22,049 | 9,105 | |||||||||
Net unrealized depreciation of investments | (20,102) | (89) | |||||||||
Net increase in net assets from operations | 10,346 | 15,271 | |||||||||
DISTRIBUTIONS(A) | |||||||||||
Distributions to common stockholders from net investment income ($0.23 and $0.20 per share, respectively) | (7,456) | (6,619) | |||||||||
Distributions to common stockholders from net realized gains ($0.09 and $0.01 per share, respectively) | (3,002) | (355) | |||||||||
Net decrease in net assets from distributions | (10,458) | (6,974) | |||||||||
NET (DECREASE) INCREASE IN NET ASSETS | (112) | 8,297 | |||||||||
NET ASSETS, DECEMBER 31 | $ | 440,589 | $ | 368,823 |
CASH FLOWS
2021 | 2020 | |||||||
NET ASSETS, MARCH 31 | $ | 382,364 | $ | 369,031 | ||||
OPERATIONS | ||||||||
Net investment (loss) income | (2,304 | ) | 4,173 | |||||
Net realized gain on investments | 1,929 | 753 | ||||||
Net unrealized appreciation (depreciation) of investments | 47,514 | (4,887 | ) | |||||
|
|
|
| |||||
Net increase in net assets from operations | 47,139 | 39 | ||||||
|
|
|
| |||||
DISTRIBUTIONS(A) | ||||||||
Distributions to common stockholders from net investment income ($0.20 and $0.28 per share, respectively) | (6,593 | ) | (9,272 | ) | ||||
Distributions to common stockholders from net realized gains ($0.07 and $0.02 per share, respectively) | (2,372 | ) | (666 | ) | ||||
|
|
|
| |||||
Net decrease in net assets from distributions | (8,965 | ) | (9,938 | ) | ||||
|
|
|
| |||||
CAPITAL ACTIVITY | ||||||||
Issuance of common stock | — | 1,772 | ||||||
Discounts, commissions, and offering costs for issuance of common stock | — | (35 | ) | |||||
|
|
|
| |||||
Net increase in net assets from capital activity | — | 1,737 | ||||||
|
|
|
| |||||
NET INCREASE (DECREASE) IN NET ASSETS | 38,174 | (8,162 | ) | |||||
|
|
|
| |||||
NET ASSETS, JUNE 30 | $ | 420,538 | $ | 360,869 | ||||
|
|
|
|
|
Nine Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net increase in net assets resulting from operations | $ | 85,620 | $ | 21,940 | |||||||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |||||||||||
Purchase of investments | (84,550) | (89,571) | |||||||||
Principal repayments of investments | 46,898 | 20,734 | |||||||||
Net proceeds from the sale of investments | 50,018 | 30,515 | |||||||||
Net realized gain on investments | (24,442) | (10,479) | |||||||||
Net realized loss on other | 1,998 | — | |||||||||
Net unrealized (appreciation) depreciation of investments | (54,916) | 3,335 | |||||||||
Amortization of premiums, discounts, and acquisition costs, net | (14) | (14) | |||||||||
Amortization of deferred financing costs and discounts | 1,355 | 1,291 | |||||||||
Bad debt expense, net of recoveries | 698 | 61 | |||||||||
Changes in assets and liabilities: | |||||||||||
Decrease in interest receivable | 156 | 1,610 | |||||||||
Increase in due from administrative agent | (643) | (3,608) | |||||||||
Decrease in other assets, net | 378 | 1 | |||||||||
Increase (decrease) in accounts payable and accrued expenses | 782 | (93) | |||||||||
Increase in interest payable | 1,672 | 110 | |||||||||
Increase in fees due to Adviser(A) | 13,887 | 4,663 | |||||||||
Decrease in fee due to Administrator(A) | (39) | (120) | |||||||||
Increase (decrease) in other liabilities | 435 | (12,934) | |||||||||
Net cash provided by (used in) operating activities | 39,293 | (32,559) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from issuance of common stock | — | 1,772 | |||||||||
Discounts, commissions, and offering costs for issuance of common stock | — | (31) | |||||||||
Proceeds from line of credit | 111,700 | 111,700 | |||||||||
Repayments on line of credit | (134,100) | (76,900) | |||||||||
Proceeds from issuance of notes payable | 134,550 | — | |||||||||
Proceeds from issuance of mandatorily redeemable preferred stock | — | 19,276 | |||||||||
Redemption of mandatorily redeemable preferred stock | (94,371) | — | |||||||||
Deferred financing and offering costs | (3,431) | (773) | |||||||||
Distributions paid to common stockholders | (27,395) | (23,885) | |||||||||
Net cash (used in) provided by financing activities | (13,047) | 31,159 | |||||||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS | 26,246 | (1,400) | |||||||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,398 | 4,060 | |||||||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD | $ | 28,644 | $ | 2,660 | |||||||
CASH PAID FOR INTEREST | $ | 6,437 | $ | 2,370 |
INVESTMENTS
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net increase in net assets resulting from operations | $ | 47,139 | $ | 39 | ||||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||||||
Purchase of investments | (17,150 | ) | (300 | ) | ||||
Principal repayments of investments | 14,060 | — | ||||||
Net proceeds from the sale of investments | 7,775 | 620 | ||||||
Net realized gain on investments | (1,929 | ) | (753 | ) | ||||
Net unrealized (appreciation) depreciation of investments | (47,514 | ) | 4,887 | |||||
Amortization of premiums, discounts, and acquisition costs, net | (5 | ) | (5 | ) | ||||
Amortization of deferred financing costs and discounts | 456 | 374 | ||||||
Bad debt expense, net of recoveries | 55 | 74 | ||||||
Changes in assets and liabilities: | ||||||||
Decrease in interest receivable | 806 | 912 | ||||||
Increase in due from administrative agent | (659 | ) | (560 | ) | ||||
Increase in other assets, net | (68 | ) | (231 | ) | ||||
Increase in accounts payable and accrued expenses | 901 | 190 | ||||||
Increase (decrease) in interest payable | 571 | (5 | ) | |||||
Increase in fees due to Adviser(A) | 9,708 | 313 | ||||||
Increase in fee due to Administrator(A) | 94 | 152 | ||||||
Increase (decrease) in other liabilities | 179 | (10,837 | ) | |||||
|
|
|
| |||||
Net cash provided by (used in) operating activities | 14,419 | (5,130 | ) | |||||
|
|
|
| |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from issuance of common stock | — | 1,772 | ||||||
Discounts, commissions, and offering costs for issuance of common stock | — | (31 | ) | |||||
Proceeds from line of credit | 29,800 | 18,200 | ||||||
Repayments on line of credit | (10,300 | ) | (7,900 | ) | ||||
Proceeds from issuance of mandatorily redeemable preferred stock | — | 2,321 | ||||||
Deferred financing and offering costs | (75 | ) | (285 | ) | ||||
Distributions paid to common stockholders | (8,965 | ) | (9,938 | ) | ||||
|
|
|
| |||||
Net cash provided by financing activities | 10,460 | 4,139 | ||||||
|
|
|
| |||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS | 24,879 | (991 | ) | |||||
|
|
|
| |||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,398 | 4,060 | ||||||
|
|
|
| |||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD | $ | 27,277 | $ | 3,069 | ||||
|
|
|
| |||||
CASH PAID FOR INTEREST | $ | 1,339 | $ | 554 | ||||
|
|
|
| |||||
NON-CASH ACTIVITIES | $ | — | $ | — | ||||
|
|
|
|
|
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||||||||||
NON-CONTROL/NON-AFFILIATE INVESTMENTS(N) – 96.7% | ||||||||||||||||||||
Secured First Lien Debt – 53.0% | ||||||||||||||||||||
Diversified/Conglomerate Manufacturing – 1.0% | ||||||||||||||||||||
Phoenix Door Systems, Inc. – Line of Credit, $600 available (L+7.0%, 9.0% Cash (0.3% Unused Fee), Due 3/2024)(K) | $ | 1,550 | $ | 1,550 | $ | 1,504 | ||||||||||||||
Phoenix Door Systems, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 9/2024)(K) | 3,200 | 3,200 | 3,104 | |||||||||||||||||
4,750 | 4,608 | |||||||||||||||||||
Diversified/Conglomerate Services –29.2% | ||||||||||||||||||||
Bassett Creek Services, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 4/2023)(L) | 48,000 | 48,000 | 48,000 | |||||||||||||||||
Counsel Press, Inc. – Term Debt (L+11.8%, 12.8% Cash, Due 3/2023)(L) | 21,100 | 21,100 | 21,100 | |||||||||||||||||
Counsel Press, Inc. – Term Debt (L+13.0%, 14.0% Cash, Due 3/2023)(L) | 6,400 | 6,400 | 6,400 | |||||||||||||||||
Horizon Facilities Services, Inc. – Term Debt (L+9.5%, 12.0% Cash, Due 6/2024)(L) | 27,700 | 27,700 | 27,700 | |||||||||||||||||
Mason West, LLC – Term Debt (L+10.0%, 12.5% Cash, Due 7/2025)(L) | 25,250 | 25,250 | 25,250 | |||||||||||||||||
128,450 | 128,450 | |||||||||||||||||||
Healthcare, Education, and Childcare – 4.5% | ||||||||||||||||||||
Educators Resource, Inc. – Term Debt (L+10.5%, 13.0% Cash, Due 11/2023)(L) | 20,000 | 20,000 | 20,000 | |||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.6% | ||||||||||||||||||||
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L) | 17,700 | 17,700 | 17,700 | |||||||||||||||||
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L) | 6,850 | 6,850 | 6,850 | |||||||||||||||||
24,550 | 24,550 | |||||||||||||||||||
Hotels, Motels, Inns, and Gaming Total –6.3% | ||||||||||||||||||||
Nocturne Villa Rentals, Inc. – Line of Credit, $2,000 available (L+8.0%, 10.0% Cash, Due 6/2023)(L) | — | — | — | |||||||||||||||||
Nocturne Villa Rentals, Inc. – Term Debt (L+10.5%, 12.5% Cash, Due 6/2026)(L) | 27,700 | 27,700 | 27,700 | |||||||||||||||||
27,700 | 27,700 | |||||||||||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 6.4% | ||||||||||||||||||||
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L) | 13,081 | 13,081 | 13,081 | |||||||||||||||||
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L) | 8,500 | 8,500 | 8,500 | |||||||||||||||||
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L) | 6,400 | 6,400 | 6,400 | |||||||||||||||||
27,981 | 27,981 | |||||||||||||||||||
Total Secured First Lien Debt | $ | 233,431 | $ | 233,289 | ||||||||||||||||
Secured Second Lien Debt – 15.2% | ||||||||||||||||||||
Aerospace and Defense – 5.8% | ||||||||||||||||||||
Galaxy Technologies Holdings, Inc. – Term Debt (L+4.1%, 7.1% Cash, Due 10/2026)(L) | $ | 6,500 | $ | 6,500 | $ | 6,500 | ||||||||||||||
Galaxy Technologies Holdings, Inc. – Term Debt (L+7.0%, 10.0% Cash, Due 10/2026)(L) | 18,796 | 18,796 | 18,796 | |||||||||||||||||
25,296 | 25,296 | |||||||||||||||||||
Automobile – 0.9% | ||||||||||||||||||||
Country Club Enterprises, LLC – Term Debt (L+8.0%, 10.0% Cash, Due 2/2022)(K) | 4,000 | 4,000 | 3,980 | |||||||||||||||||
Country Club Enterprises, LLC – Guaranty ($1,000)(T) | — | — | — | |||||||||||||||||
4,000 | 3,980 | |||||||||||||||||||
Cargo Transport – 3.0% | ||||||||||||||||||||
Diligent Delivery Systems – Term Debt (L+9.0%, 11.0% Cash, Due 11/2022)(K) | 13,000 | 12,983 | 13,064 | |||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 3.0% | ||||||||||||||||||||
Ginsey Home Solutions, Inc. – Term Debt (L+10.0%, 13.5% Cash, Due 1/2025)(H)(L) | 13,300 | 13,300 | 13,300 | |||||||||||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 2.5% | ||||||||||||||||||||
SBS Industries Holdings, Inc. – Term Debt (L+7.0%, 9.0% Cash, Due 11/2024)(G)(K) | 11,736 | 11,736 | 10,885 | |||||||||||||||||
Total Secured Second Lien Debt | $ | 67,315 | $ | 66,525 | ||||||||||||||||
Preferred Equity – 28.1% | ||||||||||||||||||||
Diversified/Conglomerate Services – 12.4% | ||||||||||||||||||||
Bassett Creek Services, Inc. – Preferred Stock(C)(L) | 4,900 | $ | 4,900 | $ | 7,033 | |||||||||||||||
Counsel Press, Inc. – Preferred Stock(C)(L) | 6,995 | 6,995 | 24,714 | |||||||||||||||||
Horizon Facilities Services, Inc. – Preferred Stock(C)(L) | 10,080 | 10,080 | 15,209 | |||||||||||||||||
Mason West, LLC – Preferred Stock(C)(L) | 11,206 | 11,206 | 7,556 | |||||||||||||||||
33,181 | 54,512 | |||||||||||||||||||
Healthcare, Education, and Childcare – 4.6% | ||||||||||||||||||||
Educators Resource, Inc. – Preferred Stock(C)(L) | 8,560 | 8,560 | 20,070 |
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 4.4% | ||||||||||||||||||||
Brunswick Bowling Products, Inc. – Preferred Stock(C)(L) | 6,653 | 6,653 | 14,856 | |||||||||||||||||
Ginsey Home Solutions, Inc. – Preferred Stock(C)(L) | 19,280 | 9,583 | 4,538 | |||||||||||||||||
16,236 | 19,394 | |||||||||||||||||||
Hotels, Motels, Inns, and Gaming Total -1.8% | ||||||||||||||||||||
Nocturne Villa Rentals, Inc.- Preferred Stock (C)(L) | 6,600 | 6,600 | 8,104 | |||||||||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 4.9 % | ||||||||||||||||||||
Schylling, Inc. – Preferred Stock(C)(L) | 4,000 | 4,000 | 21,390 | |||||||||||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0% | ||||||||||||||||||||
SBS Industries Holdings, Inc. – Preferred Stock(C)(L) | 27,705 | 2,771 | — | |||||||||||||||||
Total Preferred Equity | $ | 71,348 | $ | 123,470 | ||||||||||||||||
Common Equity/Equivalents – 0.4% | ||||||||||||||||||||
Aerospace and Defense -0.1% | ||||||||||||||||||||
Galaxy Technologies Holdings, Inc. – Common Stock(C)(L) | 16,957 | $ | 11,513 | $ | 296 | |||||||||||||||
Cargo Transport – 0.3% | ||||||||||||||||||||
Diligent Delivery Systems – Common Stock Warrants(C)(L) | 8 | % | 500 | 1,258 | ||||||||||||||||
Diversified/Conglomerate Manufacturing – 0.0% | ||||||||||||||||||||
Phoenix Door Systems, Inc. – Common Stock(C)(L) | 3,195 | 1,452 | — | |||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 0.0% | ||||||||||||||||||||
Ginsey Home Solutions, Inc. – Common Stock(C)(L) | 63,747 | 8 | — | |||||||||||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0% | ||||||||||||||||||||
SBS Industries Holdings, Inc. – Common Stock(C)(L) | 221,500 | 222 | — | |||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0% | ||||||||||||||||||||
Funko Acquisition Holdings, LLC(M) – Common Units(C)(S) | 6,290 | 30 | 80 | |||||||||||||||||
Total Common Equity/Equivalents | $ | 13,725 | $ | 1,634 | ||||||||||||||||
Total Non-Control/Non-Affiliate Investments | $ | 385,819 | $ | 424,918 | ||||||||||||||||
AFFILIATE INVESTMENTS(O) – 62.6% | ||||||||||||||||||||
Secured First Lien Debt – 45.4% | ||||||||||||||||||||
Chemicals, Plastics, and Rubber – 6.0% | ||||||||||||||||||||
PSI Molded Plastics, Inc. – Term Debt (L+5.5%, 7.0% Cash, Due 1/2024)(L) | $ | 26,618 | $ | 26,618 | $ | 26,618 | ||||||||||||||
Diversified/Conglomerate Manufacturing –2.1% | ||||||||||||||||||||
Edge Adhesives Holdings, Inc.(M) – Term Debt (L+10.5%, 12.5% Cash, Due 8/2024)(K) | 9,210 | 9,210 | 9,117 | |||||||||||||||||
Diversified/Conglomerate Services – 22.4% | ||||||||||||||||||||
ImageWorks Display and Marketing Group, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 11/2022)(L) | 22,000 | 22,000 | 22,000 | |||||||||||||||||
J.R. Hobbs Co. - Atlanta, LLC - Term Debt (L+6.0%, 8.0% Cash, Due 10/2024) (G)(K) | 36,000 | 36,000 | 33,120 | |||||||||||||||||
J.R. Hobbs Co. - Atlanta, LLC – Term Debt (L+10.3%, 11.8% Cash, Due 10/2024) (G)(K) | 16,500 | 16,500 | 15,180 | |||||||||||||||||
The Maids International, LLC – Term Debt (L+10.5%, 12.0% Cash, Due 3/2025)(L) | 28,560 | 28,560 | 28,560 | |||||||||||||||||
103,060 | 98,860 | |||||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 6.1% | ||||||||||||||||||||
Old World Christmas, Inc. – Secured First Lien Term Loan (L+9.5%, 11.0% Cash, Due 12/2025)(L) | 27,000 | 27,000 | 27,000 | |||||||||||||||||
Mining, Steel, Iron and Non-Precious Metals Total – 4.1% | ||||||||||||||||||||
Utah Pacific Bridge & Steel, Ltd., $2,000 available (L+8.5%, 10.0% Cash, Due 7/2022)(L) | — | — | — | |||||||||||||||||
Utah Pacific Bridge & Steel, Ltd. (L+10.0%, 11.5% Cash, Due 7/2026)(L) | 18,250 | 18,250 | 18,250 | |||||||||||||||||
18,250 | 18,250 | |||||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.9% | ||||||||||||||||||||
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 5/2022)(G)(L) | 3,400 | 3,400 | 3,400 |
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||||||||||
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 5/2022)(G)(L) | 500 | 500 | 500 | |||||||||||||||||
3,900 | 3,900 | |||||||||||||||||||
Telecommunications – 3.8% | ||||||||||||||||||||
B+T Group Acquisition, Inc.(M) – Line of Credit, $0 available (L+11.0%, 13.0% Cash, Due 12/2024)(L) | 2,800 | 2,800 | 2,800 | |||||||||||||||||
B+T Group Acquisition, Inc.(M) – Term Debt (L+11.0%, 13.0% Cash, Due 12/2024)(L) | 14,000 | 14,000 | 14,000 | |||||||||||||||||
16,800 | 16,800 | |||||||||||||||||||
Total Secured First Lien Debt | $ | 204,838 | $ | 200,545 | ||||||||||||||||
Secured Second Lien Debt – 0.4% | ||||||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.4% | ||||||||||||||||||||
The Mountain Corporation – Term Debt (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L) | $ | 11,700 | $ | 11,700 | $ | 1,568 | ||||||||||||||
The Mountain Corporation – Delayed Draw Term Debt, $0 available (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L) | 1,500 | 1,500 | 201 | |||||||||||||||||
13,200 | 1,769 | |||||||||||||||||||
Total Secured Second Lien Debt | $ | 13,200 | $ | 1,769 | ||||||||||||||||
Preferred Equity – 16.6% | ||||||||||||||||||||
Chemicals, Plastics, and Rubber – 0.0% | ||||||||||||||||||||
PSI Molded Plastics, Inc. – Preferred Stock(C)(L) | 158,598 | $ | 19,730 | $ | — | |||||||||||||||
Diversified/Conglomerate Manufacturing – 0.0% | ||||||||||||||||||||
Edge Adhesives Holdings, Inc.(M) – Preferred Stock(C)(L) | 8,199 | 8,199 | — | |||||||||||||||||
Diversified/Conglomerate Services – 4.5% | ||||||||||||||||||||
ImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(L) | 67,490 | 6,749 | 16,139 | |||||||||||||||||
J.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(L) | 10,920 | 10,920 | — | |||||||||||||||||
The Maids International, LLC – Preferred Stock(C)(L) | 6,640 | 6,640 | 3,398 | |||||||||||||||||
24,309 | 19,537 | |||||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 7.7% | ||||||||||||||||||||
Old World Christmas, Inc. – Preferred Stock(C)(L) | 6,180 | — | 33,807 | |||||||||||||||||
Mining, Steel, Iron and Non-Precious Metals – 1.4% | ||||||||||||||||||||
Utah Pacific Bridge & Steel, Ltd. - Preferred Stock(C)(L) | 6,000 | 6,000 | 6,000 | |||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0% | ||||||||||||||||||||
The Mountain Corporation – Preferred Stock(C)(L) | 6,899 | 6,899 | — | |||||||||||||||||
6,899 | — | |||||||||||||||||||
Telecommunications – 3.0% | ||||||||||||||||||||
B+T Group Acquisition, Inc.(M) – Preferred Stock(C)(L) | 14,304 | 4,722 | 13,290 | |||||||||||||||||
Total Preferred Equity | $ | 69,859 | $ | 72,634 | ||||||||||||||||
Common Equity/Equivalents – 0.2% | ||||||||||||||||||||
Diversified/Conglomerate Services – 0.0% | ||||||||||||||||||||
Nth Degree Investment Group, LLC – Common Units(C)(L) | 14,360,000 | $ | 1,219 | 100 | ||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0% | ||||||||||||||||||||
The Mountain Corporation – Common Stock(C)(L) | 751 | 1 | — | |||||||||||||||||
Telecommunications – 0.2% | ||||||||||||||||||||
B+T Group Acquisition, Inc.(M) – Common Stock Warrant(C)(L) | 3.5 | % | — | 772 | ||||||||||||||||
Total Common Equity/Equivalents | $ | 1,220 | $ | 872 | ||||||||||||||||
Total Affiliate Investments | $ | 289,117 | $ | 275,820 | ||||||||||||||||
CONTROL INVESTMENTS(P) –0.0% | ||||||||||||||||||||
Common Equity/Equivalents – 0.0% | ||||||||||||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 0.0% | ||||||||||||||||||||
Gladstone SOG Investments, Inc. - Common Stock(C)(I)(L) | 100 | $ | 620 | — | ||||||||||||||||
Total Common Equity/Equivalents | $ | 620 | $ | — | ||||||||||||||||
Total Control Investments | $ | 620 | $ | — | ||||||||||||||||
TOTAL INVESTMENTS – 159.3% | $ | 675,556 | $ | 700,738 |
JUNE 30,
(UNAUDITED)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
NON-CONTROL/NON-AFFILIATE INVESTMENTS(N) – 77.4% | ||||||||||||
Secured First Lien Debt – 45.7% | ||||||||||||
Diversified/Conglomerate Manufacturing – 1.1% | ||||||||||||
Phoenix Door Systems, Inc. – Line of Credit, $0 available (L+7.0%, 9.0% Cash (0.3% Unused Fee), Due 3/2022)(K) | $ | 1,150 | $ | 1,150 | $ | 1,136 | ||||||
Phoenix Door Systems, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 9/2024)(K) | 3,200 | 3,200 | 3,160 | |||||||||
|
|
|
| |||||||||
4,350 | 4,296 | |||||||||||
Diversified/Conglomerate Services – 28.0% | ||||||||||||
Bassett Creek Services, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 4/2023)(L) | 37,500 | 37,500 | 37,500 | |||||||||
Counsel Press, Inc. – Term Debt (L+11.8%, 12.8% Cash, Due 3/2023)(L) | 21,100 | 21,100 | 21,100 | |||||||||
Counsel Press, Inc. – Term Debt (L+13.0%, 14.0% Cash, Due 3/2023)(L) | 6,400 | 6,400 | 6,400 | |||||||||
Horizon Facilities Services, Inc. – Term Debt (L+9.5%, 12.0% Cash, Due 6/2024)(L) | 27,700 | 27,700 | 27,700 | |||||||||
Mason West, LLC – Term Debt (L+10.0%, 12.5% Cash, Due 7/2025)(L) | 25,250 | 25,250 | 25,250 | |||||||||
|
|
|
| |||||||||
117,950 | 117,950 | |||||||||||
Healthcare, Education, and Childcare – 4.8% | ||||||||||||
Educators Resource, Inc. – Term Debt (L+10.5%, 13.0% Cash, Due 11/2023)(L) | 20,000 | 20,000 | 20,000 | |||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.8% | ||||||||||||
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L) | 17,700 | 17,700 | 17,700 | |||||||||
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L) | 6,850 | 6,850 | 6,850 | |||||||||
|
|
|
| |||||||||
24,550 | 24,550 | |||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 5.1% | ||||||||||||
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L) | 13,081 | 13,081 | 13,081 | |||||||||
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L) | 8,500 | 8,500 | 8,500 | |||||||||
|
|
|
| |||||||||
21,581 | 21,581 | |||||||||||
Hotels, Motels, Inns, and Gaming Total – 0.9% | ||||||||||||
Nocturne Villa Rentals, Inc. – Line of Credit, $2,200 available (L+8.0%, 10.0% Cash, Due 7/2022) (L) | 800 | 800 | 800 | |||||||||
Nocturne Villa Rentals, Inc. – Term Debt (L+10.5%, 12.5% Cash, Due 7/2026) (L) | 2,850 | 2,850 | 2,850 | |||||||||
|
|
|
| |||||||||
3,650 | 3,650 | |||||||||||
|
|
|
| |||||||||
Total Secured First Lien Debt | $ | 192,081 | $ | 192,027 | ||||||||
|
|
|
| |||||||||
Secured Second Lien Debt – 10.0% | ||||||||||||
Automobile – 0.9% | ||||||||||||
Country Club Enterprises, LLC – Term Debt (L+8.0%, 10.0% Cash, Due 2/2022)(K) | $ | 4,000 | $ | 4,000 | $ | 3,950 | ||||||
Country Club Enterprises, LLC – Guaranty ($1,000)(T) | — | — | — | |||||||||
|
|
|
| |||||||||
4,000 | 3,950 | |||||||||||
Cargo Transport – 3.1% | ||||||||||||
Diligent Delivery Systems – Term Debt (L+9.0%, 11.0% Cash, Due 11/2022)(K) | 13,000 | 12,974 | 12,967 | |||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 3.2% | ||||||||||||
Ginsey Home Solutions, Inc. – Term Debt (L+10.0%, 13.5% Cash, Due 1/2025)(H)(L) | 13,300 | 13,300 | 13,300 | |||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 2.8% | ||||||||||||
SBS Industries Holdings, Inc. – Term Debt (L+7.0%, 9.0% Cash, Due 11/2024)(G)(L) | 11,736 | 11,736 | 11,736 | |||||||||
|
|
|
| |||||||||
Total Secured Second Lien Debt | $ | 42,010 | $ | 41,953 | ||||||||
|
|
|
|
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||||||||||
NON-CONTROL/NON-AFFILIATE INVESTMENTS(N) – 77.9% | ||||||||||||||||||||
Secured First Lien Debt – 48.9% | ||||||||||||||||||||
Diversified/Conglomerate Manufacturing – 1.1% | ||||||||||||||||||||
Phoenix Door Systems, Inc. – Line of Credit, $0 available (L+7.0%, 9.0% Cash (0.3% Unused Fee), Due 3/2022)(L) | $ | 1,150 | $ | 1,150 | $ | 1,150 | ||||||||||||||
Phoenix Door Systems, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 9/2024)(L) | 3,200 | 3,200 | 3,200 | |||||||||||||||||
4,350 | 4,350 | |||||||||||||||||||
Diversified/Conglomerate Services – 30.6% | ||||||||||||||||||||
Bassett Creek Services, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 4/2023)(K) | 37,500 | 37,500 | 36,656 | |||||||||||||||||
Counsel Press, Inc. – Term Debt (L+11.8%, 12.8% Cash, Due 3/2023)(L) | 21,100 | 21,100 | 21,100 | |||||||||||||||||
Counsel Press, Inc. – Term Debt (L+13.0%, 14.0% Cash, Due 3/2023)(L) | 6,400 | 6,400 | 6,400 | |||||||||||||||||
Horizon Facilities Services, Inc. – Term Debt (L+9.5%, 12.0% Cash, Due 6/2024)(G)(L) | 27,700 | 27,700 | 27,700 | |||||||||||||||||
Mason West, LLC – Line of Credit, $3,000 available (L+8.0%, 10.0% Cash, Due 7/2021)(L) | — | — | — | |||||||||||||||||
Mason West, LLC – Term Debt (L+10.0%, 12.5% Cash, Due 7/2025)(L) | 25,250 | 25,250 | 25,250 | |||||||||||||||||
117,950 | 117,106 | |||||||||||||||||||
Healthcare, Education, and Childcare – 5.2% | ||||||||||||||||||||
Educators Resource, Inc. – Term Debt (L+10.5%, 13.0% Cash, Due 11/2023)(L) | 20,000 | 20,000 | 20,000 | |||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 6.4% | ||||||||||||||||||||
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L) | 17,700 | 17,700 | 17,700 | |||||||||||||||||
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L) | 6,850 | 6,850 | 6,850 | |||||||||||||||||
24,550 | 24,550 | |||||||||||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 5.6% | ||||||||||||||||||||
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L) | 13,081 | 13,081 | 13,081 | |||||||||||||||||
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L) | 8,500 | 8,500 | 8,500 | |||||||||||||||||
21,581 | 21,581 | |||||||||||||||||||
Total Secured First Lien Debt | $ | 188,431 | $ | 187,587 | ||||||||||||||||
Secured Second Lien Debt – 11.0% | ||||||||||||||||||||
Automobile – 1.0% | ||||||||||||||||||||
Country Club Enterprises, LLC – Term Debt (L+8.0%, 10.0% Cash, Due 2/2022)(K) | $ | 4,000 | $ | 4,000 | $ | 3,890 | ||||||||||||||
Country Club Enterprises, LLC – Guaranty ($1,000)(T) | — | — | — | |||||||||||||||||
4,000 | 3,890 | |||||||||||||||||||
Cargo Transport – 3.4% | ||||||||||||||||||||
Diligent Delivery Systems – Term Debt (L+9.0%, 11.0% Cash, Due 11/2022)(Q) | 13,000 | 12,970 | 13,000 | |||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 3.5% | ||||||||||||||||||||
Ginsey Home Solutions, Inc. – Term Debt (L+10.0%, 13.5% Cash, Due 1/2025)(H)(L) | 13,300 | 13,300 | 13,300 | |||||||||||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 3.1% | ||||||||||||||||||||
SBS Industries Holdings, Inc. – Term Debt (L+7.0%, 9.0% Cash, Due 11/2024)(L) | 11,736 | 11,736 | 11,736 | |||||||||||||||||
Total Secured Second Lien Debt | $ | 42,006 | $ | 41,926 | ||||||||||||||||
Preferred Equity – 17.3% | ||||||||||||||||||||
Diversified/Conglomerate Services – 9.2% | ||||||||||||||||||||
Bassett Creek Services, Inc. – Preferred Stock(C)(L) | 4,900 | $ | 4,900 | $ | — | |||||||||||||||
Counsel Press, Inc. – Preferred Stock(C)(L) | 6,995 | 6,995 | 21,348 | |||||||||||||||||
Horizon Facilities Services, Inc. – Preferred Stock(C)(L) | 10,080 | 10,080 | 3,663 | |||||||||||||||||
Mason West, LLC – Preferred Stock(C)(L) | 11,206 | 11,206 | 9,774 | |||||||||||||||||
33,181 | 34,785 | |||||||||||||||||||
Healthcare, Education, and Childcare – 2.9% | ||||||||||||||||||||
Educators Resource, Inc. – Preferred Stock(C)(L) | 8,560 | 8,560 | 11,194 | |||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 2.5% | ||||||||||||||||||||
Brunswick Bowling Products, Inc. – Preferred Stock(C)(L) | 6,653 | 6,653 | 1,015 | |||||||||||||||||
Ginsey Home Solutions, Inc. – Preferred Stock(C)(L) | 19,280 | 9,583 | 8,550 | |||||||||||||||||
16,236 | 9,565 | |||||||||||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 2.1% | ||||||||||||||||||||
Schylling, Inc. – Preferred Stock(C)(L) | 4,000 | 4,000 | 7,936 | |||||||||||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.6% | ||||||||||||||||||||
SBS Industries Holdings, Inc. – Preferred Stock(C)(L) | 27,705 | 2,771 | 2,463 |
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||||||||||
Total Preferred Equity | $ | 64,748 | $ | 65,943 | ||||||||||||||||
Common Equity/Equivalents – 0.7% | ||||||||||||||||||||
Cargo Transport – 0.6% | ||||||||||||||||||||
Diligent Delivery Systems – Common Stock Warrants(C)(Q) | 8 | % | $ | 500 | $ | 2,211 | ||||||||||||||
Diversified/Conglomerate Manufacturing – 0.1% | ||||||||||||||||||||
Phoenix Door Systems, Inc. – Common Stock(C)(L) | 3,195 | 1,452 | 460 | |||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 0.0% | ||||||||||||||||||||
Ginsey Home Solutions, Inc. – Common Stock(C)(L) | 63,747 | 8 | — | |||||||||||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0% | ||||||||||||||||||||
SBS Industries Holdings, Inc. – Common Stock(C)(L) | 221,500 | 222 | — | |||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0% | ||||||||||||||||||||
Funko Acquisition Holdings, LLC(M) – Common Units(C)(S) | 7,178 | 33 | 95 | |||||||||||||||||
Total Common Equity/Equivalents | $ | 2,215 | $ | 2,766 | ||||||||||||||||
Total Non-Control/Non-Affiliate Investments | $ | 297,400 | $ | 298,222 | ||||||||||||||||
AFFILIATE INVESTMENTS(O) – 80.9% | ||||||||||||||||||||
Secured First Lien Debt – 47.6% | ||||||||||||||||||||
Beverage, Food, and Tobacco – 2.4% | ||||||||||||||||||||
Head Country, Inc. – Term Debt (L+10.5%, 12.5% Cash, Due 2/2023)(L) | $ | 9,050 | $ | 9,050 | $ | 9,050 | ||||||||||||||
Chemicals, Plastics, and Rubber – 6.0% | ||||||||||||||||||||
PSI Molded Plastics, Inc. – Term Debt (L+5.5%, 7.0% Cash, Due 1/2024)(L) | 26,618 | 26,618 | 22,985 | |||||||||||||||||
Diversified/Conglomerate Manufacturing – 5.4% | ||||||||||||||||||||
D.P.M.S., Inc. – Line of Credit, $0 available (L+6.5%, 9.0% Cash (0.5% Unused Fee), Due 10/2023)(L) | 1,500 | 1,500 | 1,500 | |||||||||||||||||
D.P.M.S., Inc. – Term Debt (10.0% Cash, Due 10/2023)(I)(L) | 10,796 | 10,796 | 5,751 | |||||||||||||||||
Edge Adhesives Holdings, Inc.(M) – Line of Credit, $0 available (L+8.0%, 10.0% Cash, Due 9/2021)(K) | 1,020 | 1,020 | 1,005 | |||||||||||||||||
Edge Adhesives Holdings, Inc.(M) – Term Debt (L+10.5%, 12.5% Cash, Due 2/2022)(K) | 9,300 | 9,300 | 9,161 | |||||||||||||||||
Edge Adhesives Holdings, Inc.(M) – Term Debt (L+11.8%, 13.8% Cash, Due 2/2022)(K) | 3,000 | 3,000 | 2,955 | |||||||||||||||||
25,616 | 20,372 | |||||||||||||||||||
Diversified/Conglomerate Services – 13.3% | ||||||||||||||||||||
ImageWorks Display and Marketing Group, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 11/2022)(L) | 22,000 | 22,000 | 22,000 | |||||||||||||||||
The Maids International, LLC – Term Debt (L+10.5%, 12.0% Cash, Due 3/2025)(L) | 28,560 | 28,560 | 28,560 | |||||||||||||||||
50,560 | 50,560 | |||||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 7.1% | ||||||||||||||||||||
Old World Christmas, Inc. – Secured First Lien Term Loan (L+9.5%, 11.0% Cash, Due 12/2025)(L) | 27,000 | 27,000 | 27,000 | |||||||||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 2.3% | ||||||||||||||||||||
SOG Specialty Knives & Tools, LLC – Term Debt (Due 12/2023)(L)(R) | 538 | 538 | 538 | |||||||||||||||||
SOG Specialty Knives & Tools, LLC – Term Debt (L+4.0%, 6.0% Cash, Due 12/2023)(L) | 8,399 | 8,399 | 8,399 | |||||||||||||||||
8,937 | 8,937 | |||||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 7.0% | ||||||||||||||||||||
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 4/2021)(G)(L) | 3,400 | 3,400 | 3,400 | |||||||||||||||||
Pioneer Square Brands, Inc. – Term Debt (L+12.0%, 13.0% Cash, Due 8/2022)(Q) | 23,100 | 23,100 | 23,215 | |||||||||||||||||
26,500 | 26,615 | |||||||||||||||||||
Telecommunications – 4.1% | ||||||||||||||||||||
B+T Group Acquisition, Inc.(M) – Line of Credit, $0 available (L+11.0%, 13.0% Cash, Due 12/2021)(G)(K) | 2,800 | 2,800 | 2,597 | |||||||||||||||||
B+T Group Acquisition, Inc.(M) – Term Debt (L+11.0%, 13.0% Cash, Due 12/2021)(G)(K) | 14,000 | 14,000 | 12,985 | |||||||||||||||||
16,800 | 15,582 | |||||||||||||||||||
Total Secured First Lien Debt | $ | 191,081 | $ | 181,101 | ||||||||||||||||
Secured Second Lien Debt – 12.6% |
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||||||||||
Diversified/Conglomerate Services – 12.0% | ||||||||||||||||||||
J.R. Hobbs Co. – Atlanta, LLC – Line of Credit, $0 available (L+6.0%, 8.0% Cash, Due 10/2024)(K) | $ | 10,000 | $ | 10,000 | $ | 9,975 | ||||||||||||||
J.R. Hobbs Co. – Atlanta, LLC – Term Debt (L+10.3%, 11.8% Cash, Due 10/2024)(K) | 36,000 | 36,000 | 35,910 | |||||||||||||||||
46,000 | 45,885 | |||||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.6% | ||||||||||||||||||||
The Mountain Corporation – Term Debt (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L) | 11,700 | 11,700 | 1,849 | |||||||||||||||||
The Mountain Corporation – Delayed Draw Term Debt, $0 available (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L) | 1,500 | 1,500 | 237 | |||||||||||||||||
13,200 | 2,086 | |||||||||||||||||||
Total Secured Second Lien Debt | $ | 59,200 | $ | 47,971 | ||||||||||||||||
Preferred Equity – 20.7% | ||||||||||||||||||||
Beverage, Food, and Tobacco – 1.7% | ||||||||||||||||||||
Head Country, Inc. – Preferred Stock(C)(L) | 4,000 | $ | 4,000 | $ | 6,469 | |||||||||||||||
Chemicals, Plastics, and Rubber – 0.0% | ||||||||||||||||||||
PSI Molded Plastics, Inc. – Preferred Stock(C)(L) | 158,598 | 19,730 | — | |||||||||||||||||
Diversified/Conglomerate Manufacturing – 0.0% | ||||||||||||||||||||
Channel Technologies Group, LLC – Preferred Stock(C)(L) | 2,279 | 1,841 | — | |||||||||||||||||
Edge Adhesives Holdings, Inc.(M) – Preferred Stock(C)(L) | 8,199 | 8,199 | — | |||||||||||||||||
10,040 | — | |||||||||||||||||||
Diversified/Conglomerate Services – 3.5% | ||||||||||||||||||||
ImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(L) | 67,490 | 6,749 | 9,819 | |||||||||||||||||
J.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(L) | 10,920 | 10,920 | — | |||||||||||||||||
The Maids International, LLC – Preferred Stock(C)(L) | 6,640 | 6,640 | 3,560 | |||||||||||||||||
24,309 | 13,379 | |||||||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.3% | ||||||||||||||||||||
Old World Christmas, Inc. – Preferred Stock(C)(L) | 6,180 | — | 20,248 | |||||||||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 1.8% | ||||||||||||||||||||
SOG Specialty Knives & Tools, LLC – Preferred Stock(C)(L) | 14,949 | 14,949 | 6,754 | |||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 8.4% | ||||||||||||||||||||
The Mountain Corporation – Preferred Stock(C)(L) | 6,899 | 6,899 | — | |||||||||||||||||
Pioneer Square Brands, Inc. – Preferred Stock(C)(Q) | 5,502 | 5,500 | 32,055 | |||||||||||||||||
12,399 | 32,055 | |||||||||||||||||||
Telecommunications – 0.0% | ||||||||||||||||||||
B+T Group Acquisition, Inc.(M) – Preferred Stock(C)(L) | 14,304 | 4,722 | — | |||||||||||||||||
Total Preferred Equity | $ | 90,149 | $ | 78,905 | ||||||||||||||||
Common Equity/Equivalents – 0.0% | ||||||||||||||||||||
Diversified/Conglomerate Manufacturing – 0.0% | ||||||||||||||||||||
Channel Technologies Group, LLC – Common Stock(C)(L) | 2,319,184 | $ | — | $ | — | |||||||||||||||
D.P.M.S., Inc. – Common Stock(C)(L) | 627 | 1 | — | |||||||||||||||||
1 | — | |||||||||||||||||||
Diversified/Conglomerate Services – 0.0% | ||||||||||||||||||||
Nth Degree Investment Group, LLC – Common Units(C)(L) | 14,360,000 | 1,219 | — | |||||||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0% | ||||||||||||||||||||
The Mountain Corporation – Common Stock(C)(L) | 751 | 1 | — | |||||||||||||||||
Telecommunications – 0.0% | ||||||||||||||||||||
B+T Group Acquisition, Inc.(M) – Common Stock Warrant(C)(L) | 3.5 | % | — | — | ||||||||||||||||
Total Common Equity/Equivalents | $ | 1,221 | $ | — | ||||||||||||||||
Total Affiliate Investments | $ | 341,651 | $ | 307,977 | ||||||||||||||||
CONTROL INVESTMENTS(P) – 7.2%: | ||||||||||||||||||||
Secured Second Lien Debt – 3.4% | ||||||||||||||||||||
Aerospace and Defense – 3.4% | ||||||||||||||||||||
Galaxy Technologies, Inc. – Line of Credit, $0 available (L+4.5%, 6.5% Cash (0.5% Unused Fee), Due 8/2023)(L) | $ | 5,000 | $ | 5,000 | $ | 5,000 | ||||||||||||||
Galaxy Technologies, Inc. – Term Debt (L+6.0%, 10.0% Cash, Due 8/2023)(L) | 8,000 | 8,000 | 8,000 | |||||||||||||||||
$ | 13,000 | $ | 13,000 |
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||||||||||
Preferred Equity – 3.8% | ||||||||||||||||||||
Aerospace and Defense – 3.8% | ||||||||||||||||||||
Galaxy Technologies, Inc. – Preferred Stock(C)(L) | 5,517,444 | $ | 11,464 | $ | 14,630 | |||||||||||||||
Common Equity – 0.0% | ||||||||||||||||||||
Aerospace and Defense – 0.0% | ||||||||||||||||||||
Galaxy Technologies, Inc. – Common Stock(C)(L) | 88,843 | $ | 48 | $ | — | |||||||||||||||
Total Control Investments | $ | 24,512 | $ | 27,630 | ||||||||||||||||
TOTAL INVESTMENTS – 166.0% | $ | 663,563 | $ | 633,829 |
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
Preferred Equity – 21.3% | ||||||||||||
Diversified/Conglomerate Services – 9.9% | ||||||||||||
Bassett Creek Services, Inc. – Preferred Stock(C)(L) | 4,900 | $ | 4,900 | $ | 2,169 | |||||||
Counsel Press, Inc. – Preferred Stock(C)(L) | 6,995 | 6,995 | 23,489 | |||||||||
Horizon Facilities Services, Inc. – Preferred Stock(C)(L) | 10,080 | 10,080 | 7,097 | |||||||||
Mason West, LLC – Preferred Stock(C)(L) | 11,206 | 11,206 | 8,883 | |||||||||
|
|
|
| |||||||||
33,181 | 41,638 | |||||||||||
Healthcare, Education, and Childcare – 3.9% | ||||||||||||
Educators Resource, Inc. – Preferred Stock(C)(L) | 8,560 | 8,560 | 16,398 | |||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 2.4% | ||||||||||||
Brunswick Bowling Products, Inc. – Preferred Stock(C)(L) | 6,653 | 6,653 | 2,186 | |||||||||
Ginsey Home Solutions, Inc. – Preferred Stock(C)(L) | 19,280 | 9,583 | 8,148 | |||||||||
|
|
|
| |||||||||
16,236 | 10,334 | |||||||||||
Hotels, Motels, Inns, and Gaming Total -1.6% | ||||||||||||
Nocturne Villa Rentals, Inc.- Preferred Stock (C)(L) | 6,600 | 6,600 | 6,600 | |||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 2.9 % | ||||||||||||
Schylling, Inc. – Preferred Stock(C)(L) | 4,000 | 4,000 | 12,181 | |||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.6% | ||||||||||||
SBS Industries Holdings, Inc. – Preferred Stock(C)(L) | 27,705 | 2,771 | 2,574 | |||||||||
|
|
|
| |||||||||
Total Preferred Equity | $ | 71,348 | $ | 89,725 | ||||||||
|
|
|
| |||||||||
Common Equity/Equivalents – 0.4% | ||||||||||||
Cargo Transport – 0.4% | ||||||||||||
Diligent Delivery Systems – Common Stock Warrants(C)(L) | 8 | % | $ | 500 | $ | 1,579 | ||||||
Diversified/Conglomerate Manufacturing – 0.0% | ||||||||||||
Phoenix Door Systems, Inc. – Common Stock(C)(L) | 3,195 | 1,452 | — | |||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 0.0% | ||||||||||||
Ginsey Home Solutions, Inc. – Common Stock(C)(L) | 63,747 | 8 | — | |||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0% | ||||||||||||
SBS Industries Holdings, Inc. – Common Stock(C)(L) | 221,500 | 222 | — | |||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0% | ||||||||||||
Funko Acquisition Holdings, LLC(M) – Common Units(C)(S) | 6,290 | 31 | 91 | |||||||||
|
|
|
| |||||||||
Total Common Equity/Equivalents | $ | 2,213 | $ | 1,670 | ||||||||
|
|
|
| |||||||||
Total Non-Control/Non-Affiliate Investments | $ | 307,652 | $ | 325,375 | ||||||||
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
AFFILIATE INVESTMENTS(O) – 77.2% | ||||||||||||
Secured First Lien Debt – 53.5% | ||||||||||||
Chemicals, Plastics, and Rubber – 6.3% | ||||||||||||
PSI Molded Plastics, Inc. – Term Debt (L+5.5%, 7.0% Cash, Due 1/2024)(L) | 26,618 | 26,618 | 26,618 | |||||||||
Diversified/Conglomerate Manufacturing – 3.8% | ||||||||||||
D.P.M.S., Inc. – Line of Credit, $0 available (L+6.5%, 9.0% Cash (0.5% Unused Fee), Due 10/2023)(L) | 1,500 | 1,500 | 1,500 | |||||||||
D.P.M.S., Inc. – Term Debt (10.0% Cash, Due 10/2023)(I)(L) | 10,796 | 10,796 | 5,841 | |||||||||
Edge Adhesives Holdings, Inc.(M) – Term Debt (L+10.5%, 12.5% Cash, Due 2/2022)(K) | 8,310 | 8,310 | 8,290 | |||||||||
|
|
|
| |||||||||
20,606 | 15,631 | |||||||||||
Diversified/Conglomerate Services – 24.5% | ||||||||||||
ImageWorks Display and Marketing Group, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 11/2022)(L) | 22,000 | 22,000 | 22,000 | |||||||||
J.R. Hobbs Co. – Atlanta, LLC – Term Debt (L+6.0%, 8.0% Cash, Due 10/2024)(K) | 36,000 | 36,000 | 36,000 | |||||||||
J.R. Hobbs Co. – Atlanta, LLC – Term Debt (L+10.3%, 11.8% Cash, Due 10/2024)(K) | 16,500 | 16,500 | 16,500 | |||||||||
The Maids International, LLC – Term Debt (L+10.5%, 12.0% Cash, Due 3/2025)(L) | 28,560 | 28,560 | 28,560 | |||||||||
|
|
|
| |||||||||
103,060 | 103,060 | |||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 6.4% | ||||||||||||
Old World Christmas, Inc. – Secured First Lien Term Loan (L+9.5%, 11.0% Cash, Due 12/2025)(L) | 27,000 | 27,000 | 27,000 | |||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 2.1% | ||||||||||||
SOG Specialty Knives & Tools, LLC – Term Debt (Due 12/2023)(L)(R) | 538 | 538 | 538 | |||||||||
SOG Specialty Knives & Tools, LLC – Term Debt (L+4.0%, 6.0% Cash, Due 12/2023)(L) | 8,399 | 8,399 | 8,399 | |||||||||
|
|
|
| |||||||||
8,937 | 8,937 | |||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 6.4% | ||||||||||||
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 5/2022)(G)(L) | 3,400 | 3,400 | 3,400 | |||||||||
The Mountain Corporation – Line of Credit, $100 available (L+5.0%, 9.0% Cash, Due 5/2022)(G)(L) | 400 | 400 | 400 | |||||||||
Pioneer Square Brands, Inc. – Term Debt (L+12.0%, 13.0% Cash, Due 8/2022)(L) | 23,100 | 23,100 | 23,100 | |||||||||
|
|
|
| |||||||||
26,900 | 26,900 | |||||||||||
Telecommunications – 4.0% | ||||||||||||
B+T Group Acquisition, Inc.(M) – Line of Credit, $0 available (L+11.0%, 13.0% Cash, Due 12/2021)(L) | 2,800 | 2,800 | 2,800 | |||||||||
B+T Group Acquisition, Inc.(M) – Term Debt (L+11.0%, 13.0% Cash, Due 12/2021)(L) | 14,000 | 14,000 | 14,000 | |||||||||
|
|
|
| |||||||||
16,800 | 16,800 | |||||||||||
|
|
|
| |||||||||
Total Secured First Lien Debt | $ | 229,921 | $ | 224,946 | ||||||||
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
Secured Second Lien Debt – 0.5% | ||||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.5% | ||||||||||||
The Mountain Corporation – Term Debt (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L) | 11,700 | 11,700 | 1,853 | |||||||||
The Mountain Corporation – Delayed Draw Term Debt, $0 available (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L) | 1,500 | 1,500 | 238 | |||||||||
|
|
|
| |||||||||
13,200 | 2,091 | |||||||||||
|
|
|
| |||||||||
Total Secured Second Lien Debt | $ | 13,200 | $ | 2,091 | ||||||||
|
|
|
| |||||||||
Preferred Equity – 23.1% | ||||||||||||
Chemicals, Plastics, and Rubber – 0.0% | ||||||||||||
PSI Molded Plastics, Inc. – Preferred Stock(C)(L) | 158,598 | 19,730 | — | |||||||||
Diversified/Conglomerate Manufacturing – 0.0% | ||||||||||||
Edge Adhesives Holdings, Inc.(M) – Preferred Stock(C)(L) | 8,199 | 8,199 | — | |||||||||
Diversified/Conglomerate Services – 3.6% | ||||||||||||
ImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(L) | 67,490 | 6,749 | 12,183 | |||||||||
J.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(L) | 10,920 | 10,920 | — | |||||||||
The Maids International, LLC – Preferred Stock(C)(L) | 6,640 | 6,640 | 2,741 | |||||||||
|
|
|
| |||||||||
24,309 | 14,924 | |||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 6.9% | ||||||||||||
Old World Christmas, Inc. – Preferred Stock(C)(L) | 6,180 | — | 28,898 | |||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 3.0% | ||||||||||||
SOG Specialty Knives & Tools, LLC – Preferred Stock(C)(L) | 14,949 | 14,949 | 12,539 | |||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 7.3% | ||||||||||||
The Mountain Corporation – Preferred Stock(C)(L) | 6,899 | 6,899 | — | |||||||||
Pioneer Square Brands, Inc. – Preferred Stock(C)(L) | 5,502 | 5,500 | 30,708 | |||||||||
|
|
|
| |||||||||
12,399 | 30,708 | |||||||||||
Telecommunications – 2.3% | ||||||||||||
B+T Group Acquisition, Inc.(M) – Preferred Stock(C)(L) | 14,304 | 4,722 | 9,637 | |||||||||
|
|
|
| |||||||||
Total Preferred Equity | $ | 84,308 | $ | 96,706 | ||||||||
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
Common Equity/Equivalents – 0.1% | ||||||||||||
Diversified/Conglomerate Manufacturing – 0.0% | ||||||||||||
D.P.M.S., Inc. – Common Stock(C)(L) | 627 | 1 | — | |||||||||
Diversified/Conglomerate Services – 0.0% | ||||||||||||
Nth Degree Investment Group, LLC – Common Stock(C)(L) | 14,360,000 | 1,219 | — | |||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0% | ||||||||||||
The Mountain Corporation – Common Stock(C)(L) | 751 | 1 | — | |||||||||
Telecommunications – 0.1% | ||||||||||||
B+T Group Acquisition, Inc.(M) – Common Stock Warrant(C)(L) | 3.5 | % | — | 442 | ||||||||
|
|
|
| |||||||||
Total Common Equity/Equivalents | $ | 1,221 | $ | 442 | ||||||||
|
|
|
| |||||||||
Total Affiliate Investments | $ | 328,650 | $ | 324,185 | ||||||||
|
|
|
| |||||||||
CONTROL INVESTMENTS(P) – 6.9%: | ||||||||||||
Secured Second Lien Debt – 3.1% | ||||||||||||
Aerospace and Defense – 3.1% | ||||||||||||
Galaxy Technologies, Inc. – Line of Credit, $0 available (L+4.5%, 6.5% Cash (0.5% Unused Fee), Due 8/2023)(L) | $ | 5,000 | $ | 5,000 | $ | 5,000 | ||||||
Galaxy Technologies, Inc. – Term Debt (L+6.0%, 10.0% Cash, Due 8/2023)(L) | 8,000 | 8,000 | 8,000 | |||||||||
|
|
|
| |||||||||
$ | 13,000 | $ | 13,000 | |||||||||
|
|
|
| |||||||||
Preferred Equity – 3.8% | ||||||||||||
Aerospace and Defense – 3.8% | ||||||||||||
Galaxy Technologies, Inc. – Preferred Stock(C)(L) | 5,517,444 | $ | 11,464 | $ | 16,034 | |||||||
Common Equity – 0.0% | ||||||||||||
Aerospace and Defense – 0.0% | ||||||||||||
Galaxy Technologies, Inc. – Common Stock(C)(L) | 88,843 | $ | 48 | $ | — | |||||||
|
|
|
| |||||||||
Total Control Investments | $ | 24,512 | $ | 29,034 | ||||||||
|
|
|
| |||||||||
TOTAL INVESTMENTS – 161.5% | $ | 660,814 | $ | 678,594 | ||||||||
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
NON-CONTROL/NON-AFFILIATE INVESTMENTS(N) – 77.9% | ||||||||||||
Secured First Lien Debt – 48.9% | ||||||||||||
Diversified/Conglomerate Manufacturing – 1.1% | ||||||||||||
Phoenix Door Systems, Inc. – Line of Credit, $0 available (L+7.0%, 9.0% Cash (0.3% Unused Fee), Due 3/2022)(L) | $ | 1,150 | $ | 1,150 | $ | 1,150 | ||||||
Phoenix Door Systems, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 9/2024)(L) | 3,200 | 3,200 | 3,200 | |||||||||
|
|
|
| |||||||||
4,350 | 4,350 | |||||||||||
Diversified/Conglomerate Services – 30.6% | ||||||||||||
Bassett Creek Services, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 4/2023)(K) | 37,500 | 37,500 | 36,656 | |||||||||
Counsel Press, Inc. – Term Debt (L+11.8%, 12.8% Cash, Due 3/2023)(L) | 21,100 | 21,100 | 21,100 | |||||||||
Counsel Press, Inc. – Term Debt (L+13.0%, 14.0% Cash, Due 3/2023)(L) | 6,400 | 6,400 | 6,400 | |||||||||
Horizon Facilities Services, Inc. – Term Debt (L+9.5%, 12.0% Cash, Due 6/2024)(G)(L) | 27,700 | 27,700 | 27,700 | |||||||||
Mason West, LLC – Line of Credit, $3,000 available (L+8.0%, 10.0% Cash, Due 7/2021)(L) | — | — | — | |||||||||
Mason West, LLC – Term Debt (L+10.0%, 12.5% Cash, Due 7/2025)(L) | 25,250 | 25,250 | 25,250 | |||||||||
|
|
|
| |||||||||
117,950 | 117,106 | |||||||||||
Healthcare, Education, and Childcare – 5.2% | ||||||||||||
Educators Resource, Inc. – Term Debt (L+10.5%, 13.0% Cash, Due 11/2023)(L) | 20,000 | 20,000 | 20,000 | |||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 6.4% | ||||||||||||
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L) | 17,700 | 17,700 | 17,700 | |||||||||
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L) | 6,850 | 6,850 | 6,850 | |||||||||
|
|
|
| |||||||||
24,550 | 24,550 | |||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 5.6% | ||||||||||||
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L) | 13,081 | 13,081 | 13,081 | |||||||||
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L) | 8,500 | 8,500 | 8,500 | |||||||||
|
|
|
| |||||||||
21,581 | 21,581 | |||||||||||
|
|
|
| |||||||||
Total Secured First Lien Debt | $ | 188,431 | $ | 187,587 | ||||||||
|
|
|
| |||||||||
Secured Second Lien Debt – 11.0% | ||||||||||||
Automobile – 1.0% | ||||||||||||
Country Club Enterprises, LLC – Term Debt (L+8.0%, 10.0% Cash, Due 2/2022)(K) | $ | 4,000 | $ | 4,000 | $ | 3,890 | ||||||
Country Club Enterprises, LLC – Guaranty ($1,000)(T) | — | — | — | |||||||||
|
|
|
| |||||||||
4,000 | 3,890 | |||||||||||
Cargo Transport – 3.4% | ||||||||||||
Diligent Delivery Systems – Term Debt (L+9.0%, 11.0% Cash, Due 11/2022)(Q) | 13,000 | 12,970 | 13,000 | |||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 3.5% | ||||||||||||
Ginsey Home Solutions, Inc. – Term Debt (L+10.0%, 13.5% Cash, Due 1/2025)(H)(L) | 13,300 | 13,300 | 13,300 | |||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 3.1% | ||||||||||||
SBS Industries Holdings, Inc. – Term Debt (L+7.0%, 9.0% Cash, Due 11/2024)(L) | 11,736 | 11,736 | 11,736 | |||||||||
|
|
|
| |||||||||
Total Secured Second Lien Debt | $ | 42,006 | $ | 41,926 | ||||||||
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
Preferred Equity – 17.3% | ||||||||||||
Diversified/Conglomerate Services – 9.2% | ||||||||||||
Bassett Creek Services, Inc. – Preferred Stock(C)(L) | 4,900 | $ | 4,900 | $ | — | |||||||
Counsel Press, Inc. – Preferred Stock(C)(L) | 6,995 | 6,995 | 21,348 | |||||||||
Horizon Facilities Services, Inc. – Preferred Stock(C)(L) | 10,080 | 10,080 | 3,663 | |||||||||
Mason West, LLC – Preferred Stock(C)(L) | 11,206 | 11,206 | 9,774 | |||||||||
|
|
|
| |||||||||
33,181 | 34,785 | |||||||||||
Healthcare, Education, and Childcare – 2.9% | ||||||||||||
Educators Resource, Inc. – Preferred Stock(C)(L) | 8,560 | 8,560 | 11,194 | |||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 2.5% | ||||||||||||
Brunswick Bowling Products, Inc. – Preferred Stock(C)(L) | 6,653 | 6,653 | 1,015 | |||||||||
Ginsey Home Solutions, Inc. – Preferred Stock(C)(L) | 19,280 | 9,583 | 8,550 | |||||||||
|
|
|
| |||||||||
16,236 | 9,565 | |||||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 2.1% | ||||||||||||
Schylling, Inc. – Preferred Stock(C)(L) | 4,000 | 4,000 | 7,936 | |||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.6% | ||||||||||||
SBS Industries Holdings, Inc. – Preferred Stock(C)(L) | 27,705 | 2,771 | 2,463 | |||||||||
|
|
|
| |||||||||
Total Preferred Equity | $ | 64,748 | $ | 65,943 | ||||||||
|
|
|
| |||||||||
Common Equity/Equivalents – 0.7% | ||||||||||||
Cargo Transport – 0.6% | ||||||||||||
Diligent Delivery Systems – Common Stock Warrants(C)(Q) | 8 | % | $ | 500 | $ | 2,211 | ||||||
Diversified/Conglomerate Manufacturing – 0.1% | ||||||||||||
Phoenix Door Systems, Inc. – Common Stock(C)(L) | 3,195 | 1,452 | 460 | |||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 0.0% | ||||||||||||
Ginsey Home Solutions, Inc. – Common Stock(C)(L) | 63,747 | 8 | — | |||||||||
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0% | ||||||||||||
SBS Industries Holdings, Inc. – Common Stock(C)(L) | 221,500 | 222 | — | |||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0% | ||||||||||||
Funko Acquisition Holdings, LLC(M) – Common Units(C)(S) | 7,178 | 33 | 95 | |||||||||
|
|
|
| |||||||||
Total Common Equity/Equivalents | $ | 2,215 | $ | 2,766 | ||||||||
|
|
|
| |||||||||
|
|
|
| |||||||||
Total Non-Control/Non-Affiliate Investments | $ | 297,400 | $ | 298,222 | ||||||||
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
AFFILIATE INVESTMENTS(O) – 80.9% | ||||||||||||
Secured First Lien Debt – 47.6% | ||||||||||||
Beverage, Food, and Tobacco – 2.4% | ||||||||||||
Head Country, Inc. – Term Debt (L+10.5%, 12.5% Cash, Due 2/2023)(L) | $ | 9,050 | $ | 9,050 | $ | 9,050 | ||||||
Chemicals, Plastics, and Rubber – 6.0% | ||||||||||||
PSI Molded Plastics, Inc. – Term Debt (L+5.5%, 7.0% Cash, Due 1/2024)(L) | 26,618 | 26,618 | 22,985 | |||||||||
Diversified/Conglomerate Manufacturing – 5.4% | ||||||||||||
D.P.M.S., Inc. – Line of Credit, $0 available (L+6.5%, 9.0% Cash (0.5% Unused Fee), Due 10/2023)(L) | 1,500 | 1,500 | 1,500 | |||||||||
D.P.M.S., Inc. – Term Debt (10.0% Cash, Due 10/2023)(I)(L) | 10,796 | 10,796 | 5,751 | |||||||||
Edge Adhesives Holdings, Inc.(M) – Line of Credit, $0 available (L+8.0%, 10.0% Cash, Due 9/2021)(K) | 1,020 | 1,020 | 1,005 | |||||||||
Edge Adhesives Holdings, Inc.(M) – Term Debt (L+10.5%, 12.5% Cash, Due 2/2022)(K) | 9,300 | 9,300 | 9,161 | |||||||||
Edge Adhesives Holdings, Inc.(M) – Term Debt (L+11.8%, 13.8% Cash, Due 2/2022)(K) | 3,000 | 3,000 | 2,955 | |||||||||
|
|
|
| |||||||||
25,616 | 20,372 | |||||||||||
Diversified/Conglomerate Services – 13.3% | ||||||||||||
ImageWorks Display and Marketing Group, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 11/2022)(L) | 22,000 | 22,000 | 22,000 | |||||||||
The Maids International, LLC – Term Debt (L+10.5%, 12.0% Cash, Due 3/2025)(L) | 28,560 | 28,560 | 28,560 | |||||||||
|
|
|
| |||||||||
50,560 | 50,560 | |||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 7.1% | ||||||||||||
Old World Christmas, Inc. – Secured First Lien Term Loan (L+9.5%, 11.0% Cash, Due 12/2025)(L) | 27,000 | 27,000 | 27,000 | |||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 2.3% | ||||||||||||
SOG Specialty Knives & Tools, LLC – Term Debt (Due 12/2023)(L)(R) | 538 | 538 | 538 | |||||||||
SOG Specialty Knives & Tools, LLC – Term Debt (L+4.0%, 6.0% Cash, Due 12/2023)(L) | 8,399 | 8,399 | 8,399 | |||||||||
|
|
|
| |||||||||
8,937 | 8,937 | |||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 7.0% | ||||||||||||
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 4/2021)(G)(L) | 3,400 | 3,400 | 3,400 | |||||||||
Pioneer Square Brands, Inc. – Term Debt (L+12.0%, 13.0% Cash, Due 8/2022)(Q) | 23,100 | 23,100 | 23,215 | |||||||||
|
|
|
| |||||||||
26,500 | 26,615 | |||||||||||
Telecommunications – 4.1% | ||||||||||||
B+T Group Acquisition, Inc.(M) – Line of Credit, $0 available (L+11.0%, 13.0% Cash, Due 12/2021)(G)(K) | 2,800 | 2,800 | 2,597 | |||||||||
B+T Group Acquisition, Inc.(M) – Term Debt (L+11.0%, 13.0% Cash, Due 12/2021)(G)(K) | 14,000 | 14,000 | 12,985 | |||||||||
|
|
|
| |||||||||
16,800 | 15,582 | |||||||||||
|
|
|
| |||||||||
Total Secured First Lien Debt | $ | 191,081 | $ | 181,101 | ||||||||
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
Secured Second Lien Debt – 12.6% | ||||||||||||
Diversified/Conglomerate Services – 12.0% | ||||||||||||
J.R. Hobbs Co. – Atlanta, LLC – Line of Credit, $0 available (L+6.0%, 8.0% Cash, Due 10/2024)(K) | $ | 10,000 | $ | 10,000 | $ | 9,975 | ||||||
J.R. Hobbs Co. – Atlanta, LLC – Term Debt (L+10.3%, 11.8% Cash, Due 10/2024)(K) | 36,000 | 36,000 | 35,910 | |||||||||
|
|
|
| |||||||||
46,000 | 45,885 | |||||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.6% | ||||||||||||
The Mountain Corporation – Term Debt (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L) | 11,700 | 11,700 | 1,849 | |||||||||
The Mountain Corporation – Delayed Draw Term Debt, $0 available (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L) | 1,500 | 1,500 | 237 | |||||||||
|
|
|
| |||||||||
13,200 | 2,086 | |||||||||||
|
|
|
| |||||||||
Total Secured Second Lien Debt | $ | 59,200 | $ | 47,971 | ||||||||
|
|
|
| |||||||||
Preferred Equity – 20.7% | ||||||||||||
Beverage, Food, and Tobacco – 1.7% | ||||||||||||
Head Country, Inc. – Preferred Stock(C)(L) | 4,000 | $ | 4,000 | $ | 6,469 | |||||||
Chemicals, Plastics, and Rubber – 0.0% | ||||||||||||
PSI Molded Plastics, Inc. – Preferred Stock(C)(L) | 158,598 | 19,730 | — | |||||||||
Diversified/Conglomerate Manufacturing – 0.0% | ||||||||||||
Channel Technologies Group, LLC – Preferred Stock(C)(L) | 2,279 | 1,841 | — | |||||||||
Edge Adhesives Holdings, Inc.(M) – Preferred Stock(C)(L) | 8,199 | 8,199 | — | |||||||||
|
|
|
| |||||||||
10,040 | — | |||||||||||
Diversified/Conglomerate Services – 3.5% | ||||||||||||
ImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(L) | 67,490 | 6,749 | 9,819 | |||||||||
J.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(L) | 10,920 | 10,920 | — | |||||||||
The Maids International, LLC – Preferred Stock(C)(L) | 6,640 | 6,640 | 3,560 | |||||||||
|
|
|
| |||||||||
24,309 | 13,379 | |||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.3% | ||||||||||||
Old World Christmas, Inc. – Preferred Stock(C)(L) | 6,180 | — | 20,248 | |||||||||
Leisure, Amusement, Motion Pictures, and Entertainment – 1.8% | ||||||||||||
SOG Specialty Knives & Tools, LLC – Preferred Stock(C)(L) | 14,949 | 14,949 | 6,754 | |||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 8.4% | ||||||||||||
The Mountain Corporation – Preferred Stock(C)(L) | 6,899 | 6,899 | — | |||||||||
Pioneer Square Brands, Inc. – Preferred Stock(C)(Q) | 5,502 | 5,500 | 32,055 | |||||||||
|
|
|
| |||||||||
12,399 | 32,055 | |||||||||||
Telecommunications – 0.0% | ||||||||||||
B+T Group Acquisition, Inc.(M) – Preferred Stock(C)(L) | 14,304 | 4,722 | — | |||||||||
|
|
|
| |||||||||
Total Preferred Equity | $ | 90,149 | $ | 78,905 | ||||||||
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E) | Principal/Shares/ Units(F)(J) | Cost | Fair Value | |||||||||
Common Equity/Equivalents – 0.0% | ||||||||||||
Diversified/Conglomerate Manufacturing – 0.0% | ||||||||||||
Channel Technologies Group, LLC – Common Stock(C)(L) | 2,319,184 | $ | — | $ | — | |||||||
D.P.M.S., Inc. – Common Stock(C)(L) | 627 | 1 | — | |||||||||
|
|
|
| |||||||||
1 | — | |||||||||||
Diversified/Conglomerate Services – 0.0% | ||||||||||||
Nth Degree Investment Group, LLC – Common Stock(C)(L) | 14,360,000 | 1,219 | — | |||||||||
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0% | ||||||||||||
The Mountain Corporation – Common Stock(C)(L) | 751 | 1 | — | |||||||||
Telecommunications – 0.0% | ||||||||||||
B+T Group Acquisition, Inc.(M) – Common Stock Warrant(C)(L) | 3.5 | % | — | — | ||||||||
|
|
|
| |||||||||
Total Common Equity/Equivalents | $ | 1,221 | $ | — | ||||||||
|
|
|
| |||||||||
Total Affiliate Investments | $ | 341,651 | $ | 307,977 | ||||||||
|
|
|
| |||||||||
CONTROL INVESTMENTS(P) – 7.2%: | ||||||||||||
Secured Second Lien Debt – 3.4% | ||||||||||||
Aerospace and Defense – 3.4% | ||||||||||||
Galaxy Technologies, Inc. – Line of Credit, $0 available (L+4.5%, 6.5% Cash (0.5% Unused Fee), Due 8/2023)(L) | $ | 5,000 | $ | 5,000 | $ | 5,000 | ||||||
Galaxy Technologies, Inc. – Term Debt (L+6.0%, 10.0% Cash, Due 8/2023)(L) | 8,000 | 8,000 | 8,000 | |||||||||
|
|
|
| |||||||||
$ | 13,000 | $ | 13,000 | |||||||||
|
|
|
| |||||||||
Preferred Equity – 3.8% | ||||||||||||
Aerospace and Defense – 3.8% | ||||||||||||
Galaxy Technologies, Inc. – Preferred Stock(C)(L) | 5,517,444 | $ | 11,464 | $ | 14,630 | |||||||
Common Equity – 0.0% | ||||||||||||
Aerospace and Defense – 0.0% | ||||||||||||
Galaxy Technologies, Inc. – Common Stock(C)(L) | 88,843 | $ | 48 | $ | — | |||||||
|
|
|
| |||||||||
|
|
|
| |||||||||
Total Control Investments | $ | 24,512 | $ | 27,630 | ||||||||
|
|
|
| |||||||||
|
|
|
| |||||||||
TOTAL INVESTMENTS – 166.0% | $ | 663,563 | $ | 633,829 | ||||||||
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
As of December 31, 2021, our investment portfolio was comprised of 76.8% in debt securities and 23.2% in equity securities, at cost.
Use of Estimates
We may engage other independent valuation firms to provide earnings multiple ranges, as well as other information, and evaluate such information for incorporation into the total enterprise value (“TEV”) of certain of our investments. Generally, at least once per year, we engage an independent valuation firm to value or review the valuation of each of our significant equity investments, which includes providing the information noted above. The Valuation Team evaluates such information for incorporation into our TEV, including review of all inputs provided by the independent valuation firm. The Valuation Team then makes a recommendation to our Valuation Committee and Board of Directors as to the fair value. Our Board of Directors reviews the recommended fair value and whether it is reasonable in light of the Policy and other relevant facts and circumstances before determining fair value.
|
|
|
|
•Yield Analysis — The Valuation Team generally determines the fair value of our debt investments for which we do not have the ability to effectuate a sale of the applicable portfolio company using the yield analysis, which includes a DCF calculation and assumptions that the Valuation Team believes market participants would use, including: estimated remaining life, current market yield, current leverage, and interest rate spreads. This technique develops a modified discount rate that incorporates risk premiums including, among other things, increased probability of default, increased loss upon default, and increased liquidity risk. Generally, the Valuation Team uses the yield analysis to corroborate both estimates of value provided by ICE and market quotes.
We are also party to the Administration Agreement with the Administrator, which is owned and controlled by our chairman and chief executive officer, whereby we pay separately for administrative services.
|
|
|
As of June 30,December 31, 2021 and March 31, 2021, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:
Fair Value Measurements | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
As of June 30, 2021: | ||||||||||||||||
Secured first lien debt | $ | 416,973 | $ | — | $ | — | $ | 416,973 | ||||||||
Secured second lien debt | 57,044 | — | — | 57,044 | ||||||||||||
Preferred equity | 202,465 | — | — | 202,465 | ||||||||||||
Common equity/equivalents | 2,112 | — | 91 | (A) | 2,021 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments as of June 30, 2021 | $ | 678,594 | $ | — | $ | 91 | $ | 678,503 | ||||||||
|
|
|
|
|
|
|
|
Fair Value Measurements | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
As of March 31, 2021: | ||||||||||||||||
Secured first lien debt | $ | 368,688 | $ | — | $ | — | $ | 368,688 | ||||||||
Secured second lien debt | 102,897 | — | — | 102,897 | ||||||||||||
Preferred equity | 159,478 | — | — | 159,478 | ||||||||||||
Common equity/equivalents | 2,766 | — | 95 | (A) | 2,671 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments as of March 31, 2021 | $ | 633,829 | $ | — | $ | 95 | $ | 633,734 | ||||||||
|
|
|
|
|
|
|
|
|
Fair Value Measurements Fair Value As of December 31, 2021: Secured first lien debt $ 433,834 $ — $ — $ 433,834 Secured second lien debt 68,294 — — 68,294 Preferred equity 196,104 — — 196,104 Common equity/equivalents 2,506 — 80 (A) 2,426 Total Investments as of December 31, 2021 $ 700,738 $ — $ 80 $ 700,658
Fair Value Measurements | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
As of March 31, 2021: | |||||||||||||||||||||||
Secured first lien debt | $ | 368,688 | $ | — | $ | — | $ | 368,688 | |||||||||||||||
Secured second lien debt | 102,897 | — | — | 102,897 | |||||||||||||||||||
Preferred equity | 159,478 | — | — | 159,478 | |||||||||||||||||||
Common equity/equivalents | 2,766 | — | 95 | (A) | 2,671 | ||||||||||||||||||
Total Investments as of March 31, 2021 | $ | 633,829 | $ | — | $ | 95 | $ | 633,734 |
Total Recurring Fair Value Measurements Reported in Consolidated Statements of Assets and Liabilities Valued Using Level 3 Inputs | ||||||||
June 30, 2021 | March 31, 2021 | |||||||
Non-Control/Non-Affiliate Investments | ||||||||
Secured first lien debt | $ | 192,027 | $ | 187,587 | ||||
Secured second lien debt | 41,953 | 41,926 | ||||||
Preferred equity | 89,725 | 65,943 | ||||||
Common equity/equivalents(A) | 1,579 | 2,671 | ||||||
|
|
|
| |||||
Total Non-Control/Non-Affiliate Investments | 325,284 | 298,127 | ||||||
Affiliate Investments | ||||||||
Secured first lien debt | 224,946 | 181,101 | ||||||
Secured second lien debt | 2,091 | 47,971 | ||||||
Preferred equity | 96,706 | 78,905 | ||||||
Common equity/equivalents | 442 | — | ||||||
|
|
|
| |||||
Total Affiliate Investments | 324,185 | 307,977 | ||||||
Control Investments | ||||||||
Secured first lien debt | — | — | ||||||
Secured second lien debt | 13,000 | 13,000 | ||||||
Preferred equity | 16,034 | 14,630 | ||||||
Common equity/equivalents | — | — | ||||||
|
|
|
| |||||
Total Control Investments | 29,034 | 27,630 | ||||||
|
|
|
| |||||
Total investments at fair value using Level 3 inputs | $ | 678,503 | $ | 633,734 | ||||
|
|
|
|
|
December 31, 2021 March 31, 2021 Non-Control/Non-Affiliate Investments Secured first lien debt $ 233,289 $ 187,587 Secured second lien debt 66,525 41,926 Preferred equity 123,470 65,943 1,554 2,671 Total Non-Control/Non-Affiliate Investments 424,838 298,127 Affiliate Investments Secured first lien debt 200,545 181,101 Secured second lien debt 1,769 47,971 Preferred equity 72,634 78,905 Common equity/equivalents 872 — Total Affiliate Investments 275,820 307,977 Control Investments Secured first lien debt — — Secured second lien debt — 13,000 Preferred equity — 14,630 Common equity/equivalents — — Total Control Investments — 27,630 Total investments at fair value using Level 3 inputs $ 700,658 $ 633,734
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
Fair Value as of | Valuation Technique/ Methodology | Unobservable Input | Range / Weighted-Average as of | |||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2021 | March 31, 2021 | |||||||||||||
Secured first lien debt | $ | 351,888 | $ | 303,330 | (A) | TEV | EBITDA multiple | 3.9x – 8.0x / 6.8x | 4.6x – 8.0x / 7.0x | |||||||
EBITDA |
$1,397 – $20,969 / $7,414 |
$1,403 – $9,500 / $5,746 | ||||||||||||||
Revenue |
0.7x – 0.7x / 0.7x |
0.6x – 0.7x / 0.6x | ||||||||||||||
Revenue |
$14,298 – $14,298 / |
$14,474 – $30,537 / | ||||||||||||||
|
65,085 |
|
|
65,358 |
|
Yield |
Discount |
8.0% – 13.5% / |
13.3% – 17.9% / | |||||||
Secured second lien debt |
|
40,126 |
|
|
53,122 |
(B) |
TEV |
EBITDA |
6.0x – 6.7x / 6.4x |
5.9x – 6.6x / 6.2x | ||||||
EBITDA |
$4,650 – $5,017 / |
$4,551 – $5,100 / | ||||||||||||||
Revenue |
0.7x – 0.7x / 0.7x |
0.7x – 0.7x / 0.7x | ||||||||||||||
Revenue |
$14,298 – $14,298 / |
$14,474 – $14,474 / | ||||||||||||||
|
16,918 |
|
|
49,775 |
|
Yield |
Discount |
11.8% – 12.3% / |
8.1% – 13.5% / | |||||||
Preferred equity |
|
202,465 |
|
|
159,478 |
(C) |
TEV |
EBITDA |
3.9x – 8.0x / 6.5x |
5.6x – 8.0 / 6.6 x | ||||||
EBITDA |
$1,809 – $20,969 / |
$2,587– $9,720 / | ||||||||||||||
Revenue |
0.7x – 0.7x / 0.7x |
0.6x – 0.7x / 0.6x | ||||||||||||||
Revenue |
$14,298 – $14,298 / |
$14,474 – $30,537 / | ||||||||||||||
Common equity/equivalents(E) |
|
2,021 |
|
|
2,671 |
(D) |
TEV |
EBITDA |
4.6x – 8.0x / 6.2x |
4.6x – 7.1x / 5.7x | ||||||
EBITDA |
$856 – $12,964 / |
$1,403 – $7,135 / | ||||||||||||||
Revenue |
0.7x – 0.7x / 0.7x |
0.7x – 0.7x / 0.7x | ||||||||||||||
Revenue |
$14,298 – $14,298 / |
$14,474 – $14,474 / | ||||||||||||||
|
|
|
| |||||||||||||
Total | $ | 678,503 | $ | 633,734 | ||||||||||||
|
|
|
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||
Fair Value as of | Valuation Technique/ Methodology | Unobservable Input | Range / Weighted-Average as of | ||||||||||||||||||||||||||||||||
December 31, 2021 | March 31, 2021 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||||||
Secured first lien debt | $ | 371,809 | $ | 303,330 | (A) | TEV | EBITDA multiple | 3.4x – 8.4x / 7.0x | 4.6x – 8.0x / 7.0x | ||||||||||||||||||||||||||
EBITDA | $3,990 –$13,488 / $7,583 | $1,403 – $9,500 / $5,746 | |||||||||||||||||||||||||||||||||
Revenue multiple | 0.7x – 0.7x / 0.7x | 0.6x – 0.7x / 0.6x | |||||||||||||||||||||||||||||||||
Revenue | $14,716 – $14,716 / $14,716 | $14,474 – $30,537 / $26,110 | |||||||||||||||||||||||||||||||||
62,025 | 65,358 | Yield Analysis | Discount Rate | 10.6% – 15.4% / 13.9% | 13.3% – 17.9% / 14.7% | ||||||||||||||||||||||||||||||
Secured second lien debt | 40,364 | 53,122 | (B) | TEV | EBITDA multiple | 5.8x – 7.0x / 6.2x | 5.9x – 6.6x / 6.2x | ||||||||||||||||||||||||||||
EBITDA | $3,953 – $5,637 / $5,056 | $4,551 – $5,100 / $4,772 | |||||||||||||||||||||||||||||||||
Revenue multiple | 0.7x – 0.7x / 0.7x | 0.7x – 0.7x / 0.7x | |||||||||||||||||||||||||||||||||
Revenue | $14,716 – $14,716 / $14,716 | $14,474 – $14,474 / $14,474 | |||||||||||||||||||||||||||||||||
27,930 | 49,775 | Yield Analysis | Discount Rate | 10.1% – 12.1% / 11.0% | 8.1% – 13.5% / 11.2% | ||||||||||||||||||||||||||||||
Preferred equity | 196,104 | 159,478 | (C) | TEV | EBITDA multiple | 3.4x – 8.4x / 6.9x | 5.6x – 8.0x / 6.6x | ||||||||||||||||||||||||||||
EBITDA | $1,632 – $13,488 / $6,543 | $2,587– $9,720 / $5,938 | |||||||||||||||||||||||||||||||||
Revenue multiple | 0.7x – 0.7x / 0.7x | 0.6x – 0.7x / 0.6x | |||||||||||||||||||||||||||||||||
Revenue | $14,716 – $14,716 / $14,716 | $14,474 – $30,537 / $25,465 | |||||||||||||||||||||||||||||||||
Common equity/ equivalents(E) | 2,426 | 2,671 | (D) | TEV | EBITDA multiple | 4.9x – 8.6x / 6.0x | 4.6x – 7.1x / 5.7x | ||||||||||||||||||||||||||||
EBITDA | $559 – $13,488 / $5,491 | $1,403 – $7,135 / $4,132 | |||||||||||||||||||||||||||||||||
Revenue multiple | 0.7x – 0.7x / 0.7x | 0.7x – 0.7x / 0.7x | |||||||||||||||||||||||||||||||||
Revenue | $14,716 – $14,716 / $14,716 | $14,474 – $14,474 / $14,474 | |||||||||||||||||||||||||||||||||
Total | $ | 700,658 | $ | 633,734 |
Changes in Level 3 Fair Value Measurements of Investments
Secured First Lien Debt | Secured Second Lien Debt | Preferred Equity | Common Equity/ Equivalents | Total | ||||||||||||||||
Three Months ended June 30, 2021: | ||||||||||||||||||||
Fair value as of March 31, 2021 | $ | 368,688 | $ | 102,897 | $ | 159,478 | $ | 2,671 | $ | 633,734 | ||||||||||
Total gain (loss): | ||||||||||||||||||||
Net realized gain (loss)(A) | — | — | 1,786 | — | 1,786 | |||||||||||||||
Net unrealized appreciation (depreciation)(B) | 5,850 | 27 | 42,855 | (650 | ) | 48,082 | ||||||||||||||
Reversal of previously recorded (appreciation) depreciation upon realization(B) | 60 | — | (628 | ) | — | (568 | ) | |||||||||||||
New investments, repayments and settlements(C): | ||||||||||||||||||||
Issuances / originations | 4,050 | 6,505 | 6,600 | 17,155 | ||||||||||||||||
Settlements / repayments | (14,060 | ) | — | — | — | (14,060 | ) | |||||||||||||
Sales | — | — | (7,626 | ) | — | (7,626 | ) | |||||||||||||
Transfers(D) | 52,385 | (52,385 | ) | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Fair value as of June 30, 2021 | $ | 416,973 | $ | 57,044 | $ | 202,465 | $ | 2,021 | $ | 678,503 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Secured First Lien Debt | Secured Second Lien Debt | Preferred Equity | Common Equity/ Equivalents | Total | ||||||||||||||||
Three Months ended June 30, 2020: | ||||||||||||||||||||
Fair value as of March 31, 2020 | $ | 308,248 | $ | 123,340 | $ | 119,849 | $ | 14,454 | $ | 565,891 | ||||||||||
Total gain (loss): | ||||||||||||||||||||
Net realized gain (loss)(A) | — | — | — | — | — | |||||||||||||||
Net unrealized appreciation (depreciation)(B) | (2,570 | ) | (561 | ) | 2,388 | (4,159 | ) | (4,902 | ) | |||||||||||
Reversal of previously recorded (appreciation) depreciation upon realization(B) | — | — | — | — | — | |||||||||||||||
New investments, repayments and settlements(C): | ||||||||||||||||||||
Issuances / originations | 100 | 205 | — | — | 305 | |||||||||||||||
Settlements / repayments | — | — | — | — | — | |||||||||||||||
Sales | — | — | — | — | — | |||||||||||||||
Transfers(D) | 6,850 | (6,850 | ) | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Fair value as of June 30, 2020 | $ | 312,628 | $ | 116,134 | $ | 122,237 | $ | 10,295 | $ | 561,294 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured First Lien Debt | Secured Second Lien Debt | Preferred Equity | Common Equity/ Equivalents | Total | |||||||||||||||||||||||||
Three Months ended December 31, 2021: | |||||||||||||||||||||||||||||
Fair value as of September 30, 2021 | $ | 431,413 | $ | 68,489 | $ | 228,931 | $ | 7,592 | $ | 736,425 | |||||||||||||||||||
Total gain (loss): | |||||||||||||||||||||||||||||
Net realized gain (loss)(A) | — | — | 21,939 | — | 21,939 | ||||||||||||||||||||||||
Net unrealized appreciation (depreciation)(B) | (1,741) | (200) | 12,427 | (5,166) | 5,320 | ||||||||||||||||||||||||
Reversal of previously recorded (appreciation) depreciation upon realization(B) | — | — | (25,425) | — | (25,425) | ||||||||||||||||||||||||
New investments, repayments and settlements(C): | |||||||||||||||||||||||||||||
Issuances / originations | 37,000 | 5 | — | 37,005 | |||||||||||||||||||||||||
Settlements / repayments | (32,838) | — | — | — | (32,838) | ||||||||||||||||||||||||
Sales | — | — | (41,768) | — | (41,768) | ||||||||||||||||||||||||
Transfers(D) | — | — | — | — | — | ||||||||||||||||||||||||
Fair value as of December 31, 2021 | $ | 433,834 | $ | 68,294 | $ | 196,104 | $ | 2,426 | $ | 700,658 |
Secured First Lien Debt | Secured Second Lien Debt | Preferred Equity | Common Equity/ Equivalents | Total | |||||||||||||||||||||||||
Nine Months ended December 31, 2021: | |||||||||||||||||||||||||||||
Fair value as of March 31, 2021 | $ | 368,688 | $ | 102,897 | $ | 159,478 | $ | 2,671 | $ | 633,734 | |||||||||||||||||||
Total gain (loss): | |||||||||||||||||||||||||||||
Net realized gain (loss)(A) | — | — | 23,725 | — | 23,725 | ||||||||||||||||||||||||
Net unrealized appreciation (depreciation)(B) | 1,491 | 3,925 | 91,782 | (16,279) | 80,919 | ||||||||||||||||||||||||
Reversal of previously recorded (appreciation) depreciation upon realization(B) | 60 | — | (26,053) | — | (25,993) | ||||||||||||||||||||||||
New investments, repayments and settlements(C): | |||||||||||||||||||||||||||||
Issuances / originations | 65,450 | 6,515 | 12,600 | — | 84,565 | ||||||||||||||||||||||||
Settlements / repayments | (46,898) | — | — | — | (46,898) | ||||||||||||||||||||||||
Sales | — | — | (49,394) | — | (49,394) | ||||||||||||||||||||||||
Transfers(D) | 45,043 | (45,043) | (16,034) | 16,034 | — | ||||||||||||||||||||||||
Fair value as of December 31, 2021 | $ | 433,834 | $ | 68,294 | $ | 196,104 | $ | 2,426 | $ | 700,658 |
Secured First Lien Debt | Secured Second Lien Debt | Preferred Equity | Common Equity/ Equivalents | Total | |||||||||||||||||||||||||
Three Months ended December 31, 2020: | |||||||||||||||||||||||||||||
Fair value as of September 30, 2020 | $ | 356,496 | $ | 100,076 | $ | 140,076 | $ | 12,266 | $ | 608,914 | |||||||||||||||||||
Total gain (loss): | |||||||||||||||||||||||||||||
Net realized gain (loss)(A) | (8,470) | — | 3,292 | 14,030 | 8,852 | ||||||||||||||||||||||||
Net unrealized appreciation (depreciation)(B) | (700) | 84 | 9,680 | 2,678 | 11,742 | ||||||||||||||||||||||||
Reversal of previously recorded (appreciation) depreciation upon realization(B) | — | — | (84) | (11,785) | (11,869) | ||||||||||||||||||||||||
New investments, repayments and settlements(C): | |||||||||||||||||||||||||||||
Issuances / originations | 27,280 | 3,205 | 1,709 | — | 32,194 | ||||||||||||||||||||||||
Settlements / repayments | (12,734) | — | — | — | (12,734) | ||||||||||||||||||||||||
Sales | — | — | (12,114) | (14,182) | (26,296) | ||||||||||||||||||||||||
Transfers(D) | — | — | — | — | — | ||||||||||||||||||||||||
Fair value as of December 31, 2020 | $ | 361,872 | $ | 103,365 | $ | 142,559 | $ | 3,007 | $ | 610,803 |
Secured First Lien Debt | Secured Second Lien Debt | Preferred Equity | Common Equity/ Equivalents | Total | |||||||||||||||||||||||||
Nine Months ended December 31, 2020: | |||||||||||||||||||||||||||||
Fair value as of March 31, 2020 | $ | 308,248 | $ | 123,340 | $ | 119,849 | $ | 14,454 | $ | 565,891 | |||||||||||||||||||
Total gain (loss): | |||||||||||||||||||||||||||||
Net realized gain (loss)(A) | (8,470) | — | 3,292 | 14,144 | 8,966 | ||||||||||||||||||||||||
Net unrealized appreciation (depreciation)(B) | (1,915) | 474 | 9,432 | 490 | 8,481 | ||||||||||||||||||||||||
Reversal of previously recorded (appreciation) depreciation upon realization(B) | — | — | (84) | (11,785) | (11,869) | ||||||||||||||||||||||||
New investments, repayments and settlements(C): | |||||||||||||||||||||||||||||
Issuances / originations | 60,779 | 3,515 | 25,290 | — | 89,584 | ||||||||||||||||||||||||
Settlements / repayments | (20,734) | — | — | — | (20,734) | ||||||||||||||||||||||||
Sales | — | — | (15,220) | (14,296) | (29,516) | ||||||||||||||||||||||||
Transfers(D) | 23,964 | (23,964) | — | — | — | ||||||||||||||||||||||||
Fair value as of December 31, 2020 | $ | 361,872 | $ | 103,365 | $ | 142,559 | $ | 3,007 | $ | 610,803 |
Investment Activity
During2020 and (2) secured second lien debt of PSI Molded Plastics, Inc., with a total cost basis and fair value of $26.6 million and $17.1 million, respectively, which
•In May 2021, we dissolved our investment in Channel Technologies Group, LLC and recorded a realized loss of $1.8 million.
•In June 2021, we invested $10.0 million in Nocturne Villa Rentals, Inc. (“Nocturne”) through a combination of secured first lien debt and preferred equity. Nocturne, headquartered in Telluride, Colorado, is a luxury vacation rental manager.
•In June 2021, we invested an additional $6.5 million in J.R. Hobbs Co. – Atlanta, LLC (“J.R. Hobbs”) in the form of secured second lien debt. In connection with the investment, our secured second lien debt was converted to secured first lien debt.
•In June 2021, we sold our investment in Head Country, Inc. (“Head Country”), which resulted in success fee income of $2.0 million and a realized gain of $3.6 million. In connection with the sale, we received net cash proceeds of $16.7 million, including the repayment of our debt investment of $9.1 million at par.
Secured first lien debt Secured second lien debt Total debt Preferred equity Common equity/equivalents Total equity/equivalents Total investments Diversified/Conglomerate Services Home and Office Furnishings, Housewares, and Durable Consumer Products Personal and Non-Durable Consumer Products (Manufacturing Only) Leisure, Amusement, Motion Pictures, and Entertainment Healthcare, Education, and Childcare Aerospace and Defense Telecommunications Chemicals, Plastics, and Rubber Diversified/Conglomerate Manufacturing Cargo Transport Machinery (Non-agriculture, Non-construction, and Non-electronic) Hotels, Motels, Inns, and Gaming Beverage, Food, and Tobacco Other < 2.0% Total investments Location South West Northeast Midwest Total investments June 30,December 31, 2021, our investment portfolio consisted of investments in 2726 portfolio companies located in 1819 states across 1314 different industries with an aggregate fair value of $678.6$700.7 million. Our investments in Old World Christmas, Inc., Pioneer Square Brands Inc., J.R. Hobbs,Bassett Creek, Counsel Press, Inc., Schylling, and Bassett Creek Services, Inc.J.R. Hobbs represented our five largest portfolio investments at fair value and collectively comprised $252.9$265.7 million, or 37.1%38.0%, of our total investment portfolio at fair value as of June 30,December 31, 2021.June 30,December 31, 2021 and March 31, 2021: June 30, 2021 March 31, 2021 Cost Fair Value Cost Fair Value $ 422,002 63.9 % $ 416,973 61.4 % $ 379,512 57.2 % $ 368,688 58.2 % 68,210 10.3 57,044 8.4 114,206 17.2 102,897 16.2 490,212 74.2 474,017 69.8 493,718 74.4 471,585 74.4 167,120 25.3 202,465 29.8 166,361 25.1 159,478 25.2 3,482 0.5 2,112 0.4 3,484 0.5 2,766 0.4 170,602 25.8 204,577 30.2 169,845 25.6 162,244 25.6 $ 660,814 100.0 % $ 678,594 100.0 % $ 663,563 100.0 % $ 633,829 100.0 % December 31, 2021 March 31, 2021 Cost Fair Value Cost Fair Value Secured first lien debt $ 438,269 64.9 % $ 433,834 61.9 % $ 379,512 57.2 % $ 368,688 58.2 % Secured second lien debt 80,515 11.9 % 68,294 9.7 % 114,206 17.2 % 102,897 16.2 % Total debt 518,784 76.8 % 502,128 71.6 % 493,718 74.4 % 471,585 74.4 % Preferred equity 141,207 20.9 % 196,104 28.0 % 166,361 25.1 % 159,478 25.2 % Common equity/equivalents 15,565 2.3 % 2,506 0.4 % 3,484 0.5 % 2,766 0.4 % Total equity/equivalents 156,772 23.2 % 198,610 28.4 % 169,845 25.6 % 162,244 25.6 % Total investments $ 675,556 100.0 % $ 700,738 100.0 % $ 663,563 100.0 % $ 633,829 100.0 % June 30,December 31, 2021 and March 31, 2021: June 30, 2021 March 31, 2021 Fair Value Percentage of
Total Investments Fair Value Percentage
of Total
Investments $ 277,571 40.9 % $ 261,714 41.3 % 104,082 15.4 94,663 15.0 59,791 8.8 60,852 9.6 55,237 8.1 45,209 7.1 36,398 5.4 31,194 4.9 29,034 4.3 27,630 4.4 26,879 4.0 15,582 2.5 26,618 3.9 22,985 3.6 19,928 2.9 25,181 4.0 14,546 2.1 15,211 2.4 14,310 2.1 14,199 2.2 10,250 1.5 — — — — 15,519 2.4 3,950 0.6 3,890 0.6 $ 678,594 100.0 % $ 633,829 100.0 % December 31, 2021 March 31, 2021 Fair Value Percentage of
Total InvestmentsFair Value Percentage of Total Investments Diversified/Conglomerate Services $ 301,459 43.0 % $ 261,714 41.3 % Home and Office Furnishings, Housewares, and Durable Consumer Products 118,051 16.8 % 94,663 15.0 % Leisure, Amusement, Motion Pictures, and Entertainment 49,371 7.0 % 45,209 7.1 % Healthcare, Education, and Childcare 40,070 5.7 % 31,194 4.9 % Hotels, Motels, Inns, and Gaming 35,804 5.1 % — — % Telecommunications 30,862 4.4 % 15,582 2.5 % Chemicals, Plastics, and Rubber 26,618 3.8 % 22,985 3.6 % Aerospace and Defense 25,592 3.7 % 27,630 4.4 % Mining, Steel, Iron and Non-Precious Metals 24,250 3.5 % — — % Cargo Transport 14,322 2.0 % 15,211 2.4 % Diversified/Conglomerate Manufacturing 13,725 2.0 % 25,181 4.0 % Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) 10,885 1.6 % 14,199 2.2 % Personal and Non-Durable Consumer Products (Manufacturing Only) 5,749 0.8 % 60,852 9.6 % Beverage, Food, and Tobacco — — % 15,519 2.4 % Other < 2.0% 3,980 0.6 % 3,890 0.6 % Total investments $ 700,738 100.0 % $ 633,829 100.0 % June 30,December 31, 2021 and March 31, 2021: June 30, 2021 March 31, 2021 Fair
Value Percentage of
Total Investments Fair
Value Percentage
of
Total
Investments $ 187,105 27.6 % $ 182,529 28.8 % 182,998 27.0 160,581 25.3 177,455 26.2 163,938 25.9 131,036 19.2 126,781 20.0 $ 678,594 100.0 % $ 633,829 100.0 % December 31, 2021 March 31, 2021 Location Fair Value Percentage of
Total InvestmentsFair Value Percentage of
Total InvestmentsNortheast $ 198,598 28.3 % $ 163,938 25.9 % South 191,795 27.4 182,529 28.8 Midwest 156,597 22.3 126,781 20.0 West 153,748 22.0 160,581 25.3 Total investments $ 700,738 100.0 % $ 633,829 100.0 %
Amount | ||||||
For the remaining nine months ending March 31: | 2022 | $ | 30,261 | |||
For the fiscal years ending March 31: | 2023 | 114,750 | ||||
2024 | 118,350 | |||||
2025 | 171,777 | |||||
2026 | 52,250 | |||||
Thereafter | 2,850 | |||||
|
| |||||
Total contractual repayments | $ | 490,238 | ||||
Adjustments to cost basis of debt investments | (26 | ) | ||||
Investments in equity securities | 170,602 | |||||
|
| |||||
Total cost basis of investments held as of June 30, 2021: | $ | 660,814 | ||||
|
|
Amount | ||||||||||||||
For the remaining three months ending March 31: | 2022 | $ | 4,000 | |||||||||||
For the fiscal years ending March 31: | 2023 | 90,950 | ||||||||||||
2024 | 96,168 | |||||||||||||
2025 | 204,187 | |||||||||||||
2026 | 52,250 | |||||||||||||
Thereafter | 71,246 | |||||||||||||
Total contractual repayments | $ | 518,801 | ||||||||||||
Adjustments to cost basis of debt investments | (17) | |||||||||||||
Investments in equity securities | 156,772 | |||||||||||||
Total cost basis of investments held as of December 31, 2021: | $ | 675,556 |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Average total assets subject to base management fee(A) | $ | 664,000 | $ | 571,200 | ||||
Multiplied by prorated annual base management fee of 2.0% | 0.5 | % | 0.5 | % | ||||
|
|
|
| |||||
Base management fee(B) | 3,320 | 2,856 | ||||||
Credits to fees from Adviser—other(B) | (1,251 | ) | (735 | ) | ||||
|
|
|
| |||||
Net base management fee | $ | 2,069 | $ | 2,121 | ||||
|
|
|
| |||||
Loan servicing fee(B) | 1,868 | 1,709 | ||||||
Credits to base management fee—loan servicing fee(B) | (1,868 | ) | (1,709 | ) | ||||
|
|
|
| |||||
Net loan servicing fee | $ | — | $ | — | ||||
|
|
|
| |||||
Incentive fee – income-based | $ | 1,938 | $ | — | ||||
Incentive fee – capital gains-based(C) | 10,310 | (754 | ) | |||||
|
|
|
| |||||
Total incentive fee(B) | $ | 12,248 | $ | (754 | ) | |||
Credits to fees from Adviser—other(B) | — | — | ||||||
|
|
|
| |||||
Net total incentive fee | $ | 12,248 | $ | (754 | ) | |||
|
|
|
|
|
|
|
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Average total assets subject to base management fee(A) | $ | 726,000 | $ | 623,200 | $ | 701,800 | $ | 597,400 | |||||||||||||||
Multiplied by prorated annual base management fee of 2.0% | 0.5 | % | 0.5 | % | 1.5 | % | 1.5 | % | |||||||||||||||
Base management fee(B) | 3,630 | 3,116 | 10,527 | 8,961 | |||||||||||||||||||
Credits to fees from Adviser - other(B) | (3,682) | (789) | (5,863) | (2,594) | |||||||||||||||||||
Net base management fee | $ | (52) | $ | 2,327 | $ | 4,664 | $ | 6,367 | |||||||||||||||
Loan servicing fee(B) | 1,768 | 1,786 | 5,430 | 5,242 | |||||||||||||||||||
Credits to base management fee - loan servicing fee(B) | (1,768) | (1,786) | (5,430) | (5,242) | |||||||||||||||||||
Net loan servicing fee | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Incentive fee – income-based | $ | 2,197 | $ | 2,002 | $ | 5,892 | $ | 2,002 | |||||||||||||||
Incentive fee – capital gains-based(C) | 390 | 1,754 | 16,294 | 1,452 | |||||||||||||||||||
Total incentive fee(B) | $ | 2,587 | $ | 3,756 | $ | 22,186 | $ | 3,454 | |||||||||||||||
Credits to fees from Adviser - other(B) | — | — | — | — | |||||||||||||||||||
Net total incentive fee | $ | 2,587 | $ | 3,756 | $ | 22,186 | $ | 3,454 |
Incentive Fee
•No incentive fee in any calendar quarter in which our pre-incentive fee net investment income does not exceed the Hurdle Rate;
•100.0% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the Hurdle Rate but is less than 2.1875% of our net assets, adjusted appropriately for any share issuances or repurchases during the period, in any calendar quarter; and
•20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeds 2.1875% of our net assets, adjusted appropriately for any share issuances or repurchases during the period, in any calendar quarter.
fees of $1.8 million and $1.5 million, respectively.
Our allocable portion of the Administrator’s expenses is generally derived by multiplying the Administrator’s total expenses by the approximate percentage of time during the current quarter the Administrator’s employees performed services for us in relation to their time spent performing services for all companies serviced by the Administrator. On July 13, 2021, our Board of Directors, including a majority of the directors who are not parties to the Administration Agreement or interested persons of either party, approved the annual renewal of the Administration Agreement through August 31, 2022.
companies totaled $0.3 million and $0.6 million, respectively.
As of June 30, | As of March 31, | |||||||
2021 | 2021 | |||||||
Base management and loan servicing fee due to Adviser, net of credits | $ | 638 | $ | 1,435 | ||||
Incentive fee due to Adviser(A) | 24,718 | 14,163 | ||||||
Other due to Adviser | 53 | 66 | ||||||
|
|
|
| |||||
Total fees due to Adviser | $ | 25,409 | $ | 15,664 | ||||
Fee due to Administrator | $ | 671 | $ | 577 | ||||
|
|
|
| |||||
Total related party fees due | $ | 26,080 | $ | 16,241 | ||||
|
|
|
|
|
As of December 31, | As of March 31, | ||||||||||
2021 | 2021 | ||||||||||
Base management and loan servicing fee due to Adviser, net of credits | $ | (1,375) | $ | 1,435 | |||||||
Incentive fee due to Adviser(A) | 30,909 | 14,163 | |||||||||
Other due to Adviser | 71 | 66 | |||||||||
Total fees due to Adviser | 29,605 | 15,664 | |||||||||
Fee due to Administrator | 537 | 577 | |||||||||
Total related party fees due | $ | 30,142 | $ | 16,241 |
On August 10, 2020, we, through Business Investment, entered into Amendment No. 5 to the Credit Facility. Among other things, Amendment No. 5 amended the Credit Facility to (i) add London Interbank Offered Rate (“LIBOR”) replacement language; (ii) implement a 0.5% LIBOR floor; (iii) reduce the facility size from $200.0 million to $180.0 million, which may be expanded to $300.0 million through additional commitments; and (iv) provide certain other changes to existing terms and covenants. In addition, Amendment No. 5 provided for certain temporary changes during the COVID-19 Relief Period (August 10, 2020 until March 31, 2021, which may be extended, subject to certain conditions) including: (i) amending the definition of “Effective Advance Rate,” provided that during such period the overall effective advance rate does not exceed 55%; and (ii) removing or changing certain “Excess Concentration Limits” (as defined in the Credit Facility).
As of June 30, 2021 | As of March 31, 2021 | |||||||
Commitment amount | $ | 180,000 | $ | 180,000 | ||||
Borrowings outstanding at cost | 41,900 | 22,400 | ||||||
Availability(A) | 138,100 | 157,600 |
For the Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Weighted-average borrowings outstanding | $ | 26,363 | $ | 54,601 | ||||
Effective interest rate(B) | 9.3 | % | 6.1 | % | ||||
Commitment (unused) fees incurred | $ | 389 | $ | 368 |
|
|
As of December 31, 2021 | As of March 31, 2021 | ||||||||||
Commitment amount | $ | 180,000 | $ | 180,000 | |||||||
Borrowings outstanding at cost | $ | — | $ | 22,400 | |||||||
Availability(A) | $ | 180,000 | $ | 157,600 |
For the Three Months Ended December 31, | For the Nine Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Weighted-average borrowings outstanding | $ | 21,184 | $ | 104,829 | $ | 23,959 | $ | 88,652 | |||||||||||||||
Effective interest rate(B) | 11.1 | % | 3.8 | % | 10.1 | % | 4.2 | % | |||||||||||||||
Commitment (unused) fees incurred | $ | 406 | $ | 95 | $ | 1,191 | $ | 585 |
The following tables provide relevant information and disclosures about the Credit Facility as of June 30,December 31, 2021 and March 31, 2021, and for the three and nine months ended June 30,December 31, 2021 and 2020, as required by ASC 820:
Level 3 – Borrowings | ||||||||
Recurring Fair Value Measurements | ||||||||
Reported in Consolidated | ||||||||
Statements of Assets and Liabilities Using Significant Unobservable Inputs (Level 3) | ||||||||
June 30, 2021 | March 31, 2021 | |||||||
Credit Facility | $ | 41,900 | $ | 22,400 | ||||
|
|
|
|
Fair Value Measurements of Borrowings Using Significant | ||||
Unobservable Inputs (Level 3) Reported in | ||||
Consolidated Statements of Assets and Liabilities | ||||
Credit | ||||
Facility | ||||
Three Months Ended June 30, 2021: | ||||
Fair value at March 30, 2021 | $ | 22,400 | ||
Borrowings | 29,800 | |||
Repayments | (10,300 | ) | ||
Unrealized appreciation (depreciation) | — | |||
|
| |||
Fair value at June 30, 2021 | $ | 41,900 | ||
|
| |||
Three Months Ended June 30, 2020: | ||||
Fair value at March 31, 2020 | $ | 49,200 | ||
Borrowings | 18,200 | |||
Repayments | (7,900 | ) | ||
Unrealized appreciation (depreciation) | — | |||
|
| |||
Fair value at June 30, 2020 | $ | 59,500 | ||
|
|
Level 3 – Borrowings | |||||||||||
Recurring Fair Value Measurements Reported in Consolidated Statements of Assets and Liabilities Using Significant Unobservable Inputs (Level 3) | |||||||||||
December 31, 2021 | March 31, 2021 | ||||||||||
Credit Facility | $ | — | $ | 22,400 |
Fair Value Measurements of Borrowings Using Significant Unobservable Inputs (Level 3) Reported in Consolidated Statements of Assets and Liabilities | |||||
Credit Facility | |||||
Three Months Ended December 31, 2021: | |||||
Fair value at September 30, 2021 | $ | 8,900 | |||
Borrowings | 49,000 | ||||
Repayments | (57,900) | ||||
Fair value at December 31, 2021 | $ | — | |||
Nine Months Ended December 31, 2021: | |||||
Fair value at March 31, 2021 | $ | 22,400 | |||
Borrowings | 111,700 | ||||
Repayments | (134,100) | ||||
Fair value at December 31, 2021 | $ | — |
Fair Value Measurements of Borrowings Using Significant Unobservable Inputs (Level 3) Reported in Consolidated Statements of Assets and Liabilities | |||||
Credit Facility | |||||
Three Months Ended December 31, 2020: | |||||
Fair value at September 30, 2020 | $ | 116,600 | |||
Borrowings | 30,200 | ||||
Repayments | (62,800) | ||||
Fair value at December 31, 2020 | $ | 84,000 | |||
Nine Months Ended December 31, 2020: | |||||
Fair value at March 31, 2020 | $ | 49,200 | |||
Borrowings | 111,700 | ||||
Repayments | (76,900) | ||||
Fair value at December 31, 2020 | $ | 84,000 |
4.875% Notes due 2028
As of December 31, 2021: | ||||||||||||||||||||||||||||||||||||||||||||
Description | Ticker Symbol | Date Issued | Maturity Date(A) | Interest Rate | Notes Outstanding | Principal Amount per Note | Aggregate Principal Amount | |||||||||||||||||||||||||||||||||||||
2026 Notes | GAINN | March 2, 2021 | May 1, 2026 | 5.00% | 5,117,500 | $ | 25.00 | $ | 127,938 | |||||||||||||||||||||||||||||||||||
2028 Notes | GAINZ | August 18, 2021 | November 1, 2028 | 4.875% | 5,382,000 | $ | 25.00 | 134,550 | ||||||||||||||||||||||||||||||||||||
Notes payable, gross(B) | 10,499,500 | 262,488 | ||||||||||||||||||||||||||||||||||||||||||
Less: Discounts | (6,549) | |||||||||||||||||||||||||||||||||||||||||||
Notes payable, net(C) | $ | 255,939 |
As of March 31, 2021: | ||||||||||||||||||||||||||||||||||||||||||||
Description | Ticker Symbol | Date Issued | Maturity Date(A) | Interest Rate | Notes Outstanding | Principal Amount per Note | Aggregate Principal Amount | |||||||||||||||||||||||||||||||||||||
2026 Notes | GAINN | March 2, 2021 | May 1, 2026 | 5.00% | 5,117,500 | $ | 25.00 | $ | 127,938 | |||||||||||||||||||||||||||||||||||
Notes payable, gross(B) | 127,938 | |||||||||||||||||||||||||||||||||||||||||||
Less: Discounts | (4,055) | |||||||||||||||||||||||||||||||||||||||||||
Notes payable, net(C) | $ | 123,883 |
Description | Ticker Symbol | Date Issued | Maturity Date(A) | Interest Rate | Notes Outstanding | Principal Amount per Note | Aggregate Principal Amount | |||||||||||||||
2026 Notes | GAINN | March 2, 2021 | May 1, 2026 | 5.00 | % | 5,117,500 | $ | 25.00 | $ | 127,938 | ||||||||||||
|
| |||||||||||||||||||||
Notes payable, gross(B) |
| $ | 127,938 | |||||||||||||||||||
Less: Discounts |
| (3,881 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||
Notes payable, net(C) |
| $ | 124,057 | |||||||||||||||||||
|
|
As of MarchDecember 31, 2021:
Description | Ticker Symbol | Date Issued | Maturity Date(A) | Interest Rate | Notes Outstanding | Principal Amount per Note | Aggregate Principal Amount | |||||||||||||||
2026 Notes | GAINN | March 2, 2021 | May 1, 2026 | 5.00 | % | 5,117,500 | $ | 25.00 | $ | 127,938 | ||||||||||||
|
| |||||||||||||||||||||
Notes payable, gross(B) |
| $ | 127,938 | |||||||||||||||||||
Less: Discounts |
| (4,055 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||
Notes payable, net(C) |
| $ | 123,883 | |||||||||||||||||||
|
|
|
|
|
and March 31, 2021, asset coverage on our senior securities representing indebtedness, calculated pursuant to Sections 18 and 61 of the 1940 Act, was 259.5% and 398.0%, respectively.
The following tables summarize
As of June 30, 2021:
Class of | Ticker Symbol | Date Issued | Mandatory Redemption Date(A) | Interest Rate | Shares Outstanding | Liquidation Preference per Share | Aggregate Liquidation Preference | |||||||||||||||
Series E | GAINL | August 22, 2018 | August 31, 2025 | 6.375 | % | 3,774,853 | $ | 25.00 | $ | 94,371 | ||||||||||||
|
|
|
|
|
| |||||||||||||||||
Term preferred stock, gross(B) |
| 3,774,853 | $25.00 | $ | 94,371 | |||||||||||||||||
Less: Discounts |
| (2,039 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||
Term preferred stock, net(C) |
| $ | 92,332 | |||||||||||||||||||
|
|
Class of
Term
Preferred
StockTicker
SymbolDate Issued Mandatory
Redemption
DateInterest
RateShares
OutstandingLiquidation
Preference
per ShareAggregate
Liquidation
PreferenceSeries E GAINL August 22, 2018 August 31, 2025 6.375% 3,774,853 $ 25.00 $ 94,371 3,774,853 $ 25.00 $ 94,371 Less: Discounts (2,162) $ 92,209
Class of | Ticker Symbol | Date Issued | Mandatory Redemption Date(A) | Interest Rate | Shares Outstanding | Liquidation Preference per Share | Aggregate Liquidation Preference | |||||||||||||||
Series E | GAINL | August 22, 2018 | August 31, 2025 | 6.375 | % | 3,774,853 | $ | 25.00 | $ | 94,371 | ||||||||||||
|
|
|
|
|
| |||||||||||||||||
Term preferred stock, gross(B) |
| 3,774,853 | $ | 25.00 | $ | 94,371 | ||||||||||||||||
Less: Discounts |
| (2,162 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||
Term preferred stock, net(C) |
| $ | 92,209 | |||||||||||||||||||
|
|
|
|
|
asset coverage on our senior securities that are stock, calculated pursuant to Sections 18 and 61 of the 1940 Act, was 248.6%.
Declaration Date | Record Date | Payment Date | Dividend per Share of Series E Term Preferred Stock | |||||
April 13, 2021 | April 23, 2021 | April 30, 2021 | $ | 0.13281250 | ||||
April 13, 2021 | May 19, 2021 | May 28, 2021 | 0.13281250 | |||||
April 13, 2021 | June 18, 2021 | June 30, 2021 | 0.13281250 | |||||
|
| |||||||
Total | $ | 0.39843750 | ||||||
|
|
Declaration Date | Record Date | Payment Date | Dividend per Share of Series E Term Preferred Stock(A) | ||||||||||||||||||||
April 13, 2021 | April 23, 2021 | April 30, 2021 | $ | 0.13281250 | |||||||||||||||||||
April 13, 2021 | May 19, 2021 | May 28, 2021 | 0.13281250 | ||||||||||||||||||||
April 13, 2021 | June 18, 2021 | June 30, 2021 | 0.13281250 | ||||||||||||||||||||
July 13, 2021 | July 23, 2021 | July 30, 2021 | 0.13281250 | ||||||||||||||||||||
July 13, 2021 | August 23, 2021 | August 31, 2021 | 0.07968750 | (B) | |||||||||||||||||||
Total | $ | 0.61093750 |
Declaration Date | Record Date | Payment Date | Dividend per Share of Series D Term Preferred Stock(A) | Dividend per Share of Series E Term Preferred Stock | ||||||||
April 14, 2020 | April 24, 2020 | April 30, 2020 | $ | 0.13020833 | $ | 0.13281250 | ||||||
April 14, 2020 | May 19, 2020 | May 29, 2020 | 0.13020833 | 0.13281250 | ||||||||
April 14, 2020 | June 19, 2020 | June 30, 2020 | 0.13020833 | 0.13281250 | ||||||||
|
|
|
| |||||||||
Total | $ | 0.39062499 | $ | 0.39843750 | ||||||||
|
|
|
|
|
Declaration Date | Record Date | Payment Date | Dividend per Share of Series D Term Preferred Stock(C) | Dividend per Share of Series E Term Preferred Stock(A) | ||||||||||||||||||||||
April 14, 2020 | April 24, 2020 | April 30, 2020 | $ | 0.13020833 | $ | 0.13281250 | ||||||||||||||||||||
April 14, 2020 | May 19, 2020 | May 29, 2020 | 0.13020833 | 0.13281250 | ||||||||||||||||||||||
April 14, 2020 | June 19, 2020 | June 30, 2020 | 0.13020833 | 0.13281250 | ||||||||||||||||||||||
July 14, 2020 | July 24, 2020 | July 31, 2020 | 0.13020833 | 0.13281250 | ||||||||||||||||||||||
July 14, 2020 | August 24, 2020 | August 31, 2020 | 0.13020833 | 0.13281250 | ||||||||||||||||||||||
July 14, 2020 | September 23, 2020 | September 30, 2020 | 0.13020833 | 0.13281250 | ||||||||||||||||||||||
October 13, 2020 | October 23, 2020 | October 30, 2020 | 0.13020833 | 0.13281250 | ||||||||||||||||||||||
October 13, 2020 | November 20, 2020 | November 30, 2020 | 0.13020833 | 0.13281250 | ||||||||||||||||||||||
October 13, 2020 | December 23, 2020 | December 31, 2020 | 0.13020833 | 0.13281250 | ||||||||||||||||||||||
Total | $ | 1.17187497 | $ | 1.19531250 |
If we determined the The tax characterization of dividends paid to our preferred stockholders induring the current calendar year as of June 30,ended
The tax characterization of dividends paid to our preferred stockholders during the calendar year ended December 31, 2020 was 42.1% from ordinary income and 57.9% from capital gains.
The following table summarizes the fair value of our Series E Term Preferred Stock, based on the last reported closing sale price as of June 30, 2021 and March 31, 2021, which we consider to be a Level 1 input within the fair value hierarchy:
Fair Value as of | ||||||||
June 30, 2021 | March 31, 2021 | |||||||
Series E Term Preferred Stock | $ | 97,014 | $ | 96,108 |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Numerator: net increase in net assets resulting from operations | $ | 47,139 | $ | 39 | ||||
Denominator: basic and diluted weighted-average common shares | 33,205,023 | 33,091,662 | ||||||
|
|
|
| |||||
Basic and diluted net increase in net assets resulting from operations per weighted-average common share | $ | 1.42 | $ | — | ||||
|
|
|
|
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 10,346 | $ | 15,271 | $ | 85,620 | $ | 21,940 | |||||||||||||||
Basic and diluted weighted-average common shares | 33,205,023 | 33,205,023 | 33,205,023 | 33,167,511 | |||||||||||||||||||
Basic and diluted net increase in net assets resulting from operations per weighted-average common share | $ | 0.31 | $ | 0.46 | $ | 2.58 | $ | 0.66 |
We paid the following cash distributions to our common stockholders for the threenine months ended June 30,December 31, 2021 and 2020:
Fiscal Year | Declaration Date | Record Date | Payment Date | Distribution per Common Share | ||||||
2022 | April 13, 2021 | April 23, 2021 | April 30, 2021 | $ | 0.070 | |||||
April 13, 2021 | May 19, 2021 | May 28, 2021 | 0.070 | |||||||
April 13, 2021 | June 8, 2021 | June 17, 2021 | 0.060 | (A) | ||||||
April 13, 2021 | June 18, 2021 | June 30, 2021 | 0.070 | |||||||
|
| |||||||||
Three Months Ended June 30, 2021: | $ | 0.270 | ||||||||
|
|
Fiscal Year | Declaration Date | Record Date | Payment Date | Distribution per Common Share | ||||||
2021 | April 14, 2020 | April 24, 2020 | April 30, 2020 | $ | 0.070 | |||||
April 14, 2020 | May 19, 2020 | May 29, 2020 | 0.070 | |||||||
April 14, 2020 | June 8, 2020 | June 17, 2020 | 0.090 | (A) | ||||||
April 14, 2020 | June 19, 2020 | June 30, 2020 | 0.070 | |||||||
|
| |||||||||
Three Months Ended June 30, 2020: | 0.300 | |||||||||
|
|
Declaration Date | Record Date | Payment Date | Distribution per Common Share | ||||||||||||||||||||
April 13, 2021 | April 23, 2021 | April 30, 2021 | $ | 0.070 | |||||||||||||||||||
April 13, 2021 | May 19, 2021 | May 28, 2021 | 0.070 | ||||||||||||||||||||
April 13, 2021 | June 8, 2021 | June 17, 2021 | 0.060 | (A) | |||||||||||||||||||
| June 18, 2021 | June 30, 2021 | 0.070 | ||||||||||||||||||||
July 13, 2021 | July 23, 2021 | July 30, 2021 | 0.070 | ||||||||||||||||||||
July 13, 2021 | August 23, 2021 | August 31, 2021 | 0.070 | ||||||||||||||||||||
July 13, 2021 | September 3, 2021 | September 15, 2021 | 0.030 | (A) | |||||||||||||||||||
July 13, 2021 | September 22, 2021 | September 30, 2021 | 0.070 | ||||||||||||||||||||
October 12, 2021 | October 22, 2021 | October 29, 2021 | 0.075 | ||||||||||||||||||||
October 12, 2021 | November 19, 2021 | November 30, 2021 | 0.075 | ||||||||||||||||||||
October 12, 2021 | December 7, 2021 | December 15, 2021 | 0.090 | (A) | |||||||||||||||||||
October 12, 2021 | December 23, 2021 | December 31, 2021 | 0.075 | ||||||||||||||||||||
Nine Months Ended December 31, 2021 | $ | 0.825 |
Declaration Date | Record Date | Payment Date | Distribution per Common Share | ||||||||||||||||||||
April 14, 2020 | April 24, 2020 | April 30, 2020 | $ | 0.070 | |||||||||||||||||||
April 14, 2020 | May 19, 2020 | May 29, 2020 | 0.070 | ||||||||||||||||||||
April 14, 2020 | June 8, 2020 | June 17, 2020 | 0.090 | (A) | |||||||||||||||||||
April 14, 2020 | June 19, 2020 | June 30, 2020 | 0.070 | ||||||||||||||||||||
July 14, 2020 | July 24, 2020 | July 31, 2020 | 0.070 | ||||||||||||||||||||
July 14, 2020 | August 24, 2020 | August 31, 2020 | 0.070 | ||||||||||||||||||||
July 14, 2020 | September 23, 2020 | September 30, 2020 | 0.070 | ||||||||||||||||||||
October 13, 2020 | October 23, 2020 | October 30, 2020 | 0.070 | ||||||||||||||||||||
October 13, 2020 | November 20, 2020 | November 30, 2020 | 0.070 | ||||||||||||||||||||
October 13, 2020 | December 23, 2020 | December 31, 2020 | 0.070 | ||||||||||||||||||||
Nine Months Ended December 31, 2020 | $ | 0.720 |
Escrow Holdbacks
insignificant.
insignificant.
•A $1.0 million continuing guaranty of a wholesale financing facility agreement (the “Floor Plan Facility”) between DLL Finance LLC (f/k/a Agricredit Acceptance, LLC) and Country Club Enterprises, LLC (“CCE”). The Floor Plan Facility provides CCE with financing to bridge the time and cash flow gap between the order and delivery of golf carts to customers.
June 30, 2021 | March 31, 2021 | |||||||
Unused line of credit and delayed draw term loan commitments | $ | 2,300 | $ | 3,000 | ||||
Guaranties | 1,000 | 1,000 | ||||||
|
|
|
| |||||
Total | $ | 3,300 | $ | 4,000 | ||||
|
|
|
|
December 31, 2021 | March 31, 2021 | ||||||||||
Unused line of credit and delayed draw term loan commitments | $ | 4,600 | $ | 3,000 | |||||||
Guaranties | 1,000 | 1,000 | |||||||||
Total | $ | 5,600 | $ | 4,000 |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Per Common Share Data: | ||||||||
Net asset value at beginning of period(A) | $ | 11.52 | $ | 11.17 | ||||
Income from investment operations(B) | ||||||||
Net investment (loss) income | (0.07 | ) | 0.13 | |||||
Net realized gain on investments and other | 0.06 | 0.02 | ||||||
Net unrealized appreciation (depreciation) of investments and other | 1.43 | (0.15 | ) | |||||
|
|
|
| |||||
Total from investment operations | 1.42 | — | ||||||
Effect of equity capital activity(B) | ||||||||
Cash distributions to common stockholders from net investment income(C) | (0.20 | ) | (0.28 | ) | ||||
Cash distributions to common stockholders from realized gains(C) | (0.07 | ) | (0.02 | ) | ||||
|
|
|
| |||||
Total from equity capital activity | (0.27 | ) | (0.30 | ) | ||||
Other, net(B)(E) | (0.01 | ) | — | |||||
|
|
|
| |||||
Net asset value at end of period(A) | $ | 12.66 | $ | 10.87 | ||||
|
|
|
| |||||
Per common share market value at beginning of period | $ | 12.23 | $ | 7.85 | ||||
Per common share market value at end of period | 14.41 | 10.24 | ||||||
Total investment return(F) | 20.08 | % | 34.11 | % | ||||
Common stock outstanding at end of period(A) | 33,205,023 | 33,205,023 | ||||||
Statement of Assets and Liabilities Data: | ||||||||
Net assets at end of period | $ | 420,538 | $ | 360,869 | ||||
Average net assets(G) | 394,470 | 365,696 | ||||||
Senior Securities Data: | ||||||||
Total borrowings, at cost | $ | 174,934 | $ | 64,596 | ||||
Mandatorily redeemable preferred stock (H) | 94,371 | 134,637 | ||||||
Ratios/Supplemental Data: | ||||||||
Ratio of net expenses to average net assets – annualized(I) | 20.62 | % | 7.15 | % | ||||
Ratio of net investment (loss) income to average net assets – annualized(J) | (2.34 | ) | 4.56 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Per Common Share Data: | |||||||||||||||||||||||
Net asset value at beginning of period(A) | $ | 13.27 | $ | 10.86 | $ | 11.52 | $ | 11.17 | |||||||||||||||
Income from investment operations(B) | |||||||||||||||||||||||
Net investment income (loss) | 0.25 | 0.19 | 0.25 | 0.45 | |||||||||||||||||||
Net realized gain (loss) on investments and other | 0.67 | 0.27 | 0.68 | 0.31 | |||||||||||||||||||
Net unrealized appreciation (depreciation) of investments | (0.61) | — | 1.65 | (0.10) | |||||||||||||||||||
Total from investment operations | 0.31 | 0.46 | 2.58 | 0.66 | |||||||||||||||||||
Effect of equity capital activity(B) | |||||||||||||||||||||||
Cash distributions to common stockholders from net investment income(C) | (0.23) | (0.20) | (0.59) | (0.68) | |||||||||||||||||||
Cash distributions to common stockholders from realized gains(C) | (0.09) | (0.01) | (0.24) | (0.04) | |||||||||||||||||||
Total from equity capital activity | (0.32) | (0.21) | (0.83) | (0.72) | |||||||||||||||||||
Other, net(B)(D) | 0.01 | — | — | — | |||||||||||||||||||
Net asset value at end of period(A) | $ | 13.27 | $ | 11.11 | $ | 13.27 | $ | 11.11 | |||||||||||||||
Per common share market value at beginning of period | $ | 13.87 | $ | 9.10 | $ | 12.23 | $ | 7.85 | |||||||||||||||
Per common share market value at end of period | $ | 17.08 | $ | 10.09 | $ | 17.08 | $ | 10.09 | |||||||||||||||
Total investment return(E) | 25.52 | % | 13.38 | % | 47.50 | % | 38.22 | % | |||||||||||||||
Common stock outstanding at end of period(A) | 33,205,023 | 33,205,023 | 33,205,023 | 33,205,023 | |||||||||||||||||||
Statement of Assets and Liabilities Data: | |||||||||||||||||||||||
Net assets at end of period | $ | 440,589 | $ | 368,823 | $ | 440,589 | $ | 368,823 | |||||||||||||||
Average net assets(F) | $ | 439,754 | $ | 362,659 | $ | 420,286 | $ | 362,862 | |||||||||||||||
Senior Securities Data: | |||||||||||||||||||||||
Total borrowings, at cost | $ | 267,584 | $ | 89,096 | $ | 267,584 | $ | 89,096 | |||||||||||||||
Mandatorily redeemable preferred stock (G) | $ | — | $ | 151,871 | $ | — | $ | 151,871 | |||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||
Ratio of net expenses to average net assets – annualized(H) | 7.59 | % | 12.26 | % | 14.29 | % | 9.23 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets – annualized(I) | 7.64 | % | 6.90 | % | 2.62 | % | 5.44 | % |
We had onedid not have any unconsolidated subsidiary, Galaxy Tool Holding Corporation (“Galaxy”), whichsubsidiaries that met at least oneany of the significance conditions under Rule 1-02(w)(2) of the SEC’s Regulation S-X as of or during at least one of the threenine month periods ended June 30,December 31, 2021 and 2020. Accordingly, summarized, comparative financial information, pursuant to Rule 10-01(b), is presented below for Galaxy, which is a designer and manufacturer of precision tools for the business jet industry and of injection and blow molds for the plastics industry.
For the Three Months Ended June 30, | ||||||||
Income Statement | 2021 | 2020 | ||||||
Net sales | $ | 10,260 | $ | 6,943 | ||||
Gross profit | 1,258 | 1,463 | ||||||
Net (loss) profit | (361 | ) | 482 |
In July 2021, we invested $24.3 million in Utah Pacific Bridge & Steel, Ltd. (“Utah Pacific”an existing portfolio company, SBS Industries Holdings, Inc. ("SBS"), through a combination of secured firstsecond lien debt and preferred equity. Utah Pacific, headquartered in Lindon, Utah, isAs part of the additional investment, SBS was renamed SFEG Holdings, Inc.
we consider the likelihood of future required payment to be remote and the fair value of the guaranty to be insignificant.
Record Date | Payment Date | Distribution per Common Share | Dividend per Share of Series E Term Preferred Stock | |||||||
July 23, 2021 | July 30, 2021 | $ | 0.07 | $ | 0.13281250 | |||||
August 23, 2021 | August 31, 2021 | 0.07 | 0.13281250 | |||||||
September 3, 2021 | September 15, 2021 | 0.03 | (A) | — | ||||||
September 22, 2021 | September 30, 2021 | 0.07 | 0.13281250 | |||||||
|
|
|
| |||||||
Total for the Quarter: | $ | 0.24 | $ | 0.39843750 | ||||||
|
|
|
|
| |||||||||||||||||
Record Date | Payment Date | Distribution per Common Share | |||||||||||||||
January 21, 2022 | January 31, 2022 | $ | 0.075 | ||||||||||||||
February 4, 2022 | February 14, 2022 | 0.120 | (A) | ||||||||||||||
February 18, 2022 | February 28, 2022 | 0.075 | |||||||||||||||
March 23, 2022 | March 31, 2022 | 0.075 | |||||||||||||||
Total for the Quarter: | $ | 0.345 |
Factors”Factors” herein and the “Risk Factors” sections of our Annual Report on Form 10-K for the fiscal year ended March 31, 2021, filed with the U.S. Securities and Exchange Commission (“SEC”) on May 11, 2021 (the “Annual Report”). We caution readers not to place undue reliance on any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements and future results could differ materially from historical performance. We have based forward-looking statements on information available to us on the date of this Quarterly Report on Form 10-Q (the “Quarterly Report”). Except as required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this Quarterly Report. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the SEC, including subsequent annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The forward-looking statements contained in this Quarterly Report are excluded from the safe harbor protection provided by the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended.
We are externally managed by the Adviser, an affiliate of ours and an SEC-registered investment adviser, pursuant to an investment advisory and management agreement (the “Advisory Agreement”). We have also entered into an administration agreement (the “Administration Agreement”) with Gladstone Administration, LLC (the “Administrator”), an affiliate of ours and the Adviser. Each of the Adviser and the Administrator are privately-held companies that are indirectly owned and controlled by David Gladstone, our chairman and chief executive officer. David Dullum, our president, also serves as the executive vice president of private equity (buyouts) of the Adviser. Michael LiCalsi, our general counsel and secretary, also serves as the Administrator’s president, general counsel, and secretary, as well as the executive vice president of administration of the Adviser).
Business
At our 2020 Annual Meeting of Stockholders held on August 20, 2020, our stockholders approved a proposal authorizing us, with the subsequent approval of our board of directors (“Board of Directors”), to issue and sell shares of our common stock at a price below our then-current NAV per share, provided that the number of shares issued and sold pursuant to such authority does not exceed 25.0% of our then-outstanding common stock immediately prior to each such sale. This August 2020 stockholder authorization is in effect for one year from the date of stockholder approval. We sought and obtained stockholder approval concerning a similar proposal at each Annual Meeting of Stockholders since 2008, and with our Board of Directors’ subsequent approval, we issued shares of our common stock in three offerings at a price below the then-current NAV per share, once in May 2017, once in March 2015, and once in October 2012. Certain sales under the previous Common Stock ATM Program in March and April of 2018 were also below the then-current estimated NAV per share. The resulting proceeds, in part, have allowed us to (i) grow our portfolio by making new investments, (ii) generate additional income through these new investments, (iii) ensure continued compliance with regulatory tests and (iv) increase our debt capital while still complying with our applicable debt-to-equity ratios. We are not seeking stockholder approval for a similar proposal at the 2021 Annual Meeting of Stockholders to be held in August 2021. Refer to “Liquidity and Capital Resources — Equity — Common Stock” for further discussion of our common stock.
Regulatory Compliance
•In May 2021, we dissolved our investment in Channel Technologies Group, LLC (“CTG”) and recorded a realized loss of $1.8 million.
•In June 2021, we invested $10.0 million in Nocturne Villa Rentals, Inc. (“Nocturne”) through a combination of secured first lien debt and preferred equity. Nocturne, headquartered in Telluride, Colorado, is a luxury vacation rental manager.
•In June 2021, we invested an additional $6.5 million in J.R. Hobbs Co. —– Atlanta, LLC (“J.R. Hobbs”) in the form of secured second lien debt. In connection with the investment, our secured second lien debt was converted to secured first lien debt.
•In June 2021, we sold our investment in Head Country, Inc. (“Head Country”), which resulted in success fee income of $2.0 million and a realized gain of $3.6 million. In connection with the sale, we received net cash proceeds of $16.7 million, including the repayment of our debt investment of $9.1 million at par.
The following significant investment activity occurred subsequent to June 30, 2021. Also refer to Note 13 — Subsequent Events in the accompanying Notes to Consolidated Financial Statements.
•In July 2021, we invested an additional $5.9 million in the form of secured first lien debt intoin Nocturne.
•In July 2021, we invested $24.3 million in Utah Pacific Bridge & Steel, Ltd. (“Utah Pacific”) through a combination of secured first lien debt and preferred equity. Utah Pacific, headquartered in Lindon, Utah, is a manufacturer of large steel components used in bridge replacement, rehabilitation, and construction.
Record Date | Payment Date | Distribution per Common Share | |||||||||||||||
January 21, 2022 | January 31, 2022 | $ | 0.075 | ||||||||||||||
February 4, 2022 | February 14, 2022 | 0.120 | (A) | ||||||||||||||
February 18, 2022 | February 28, 2022 | 0.075 | |||||||||||||||
March 23, 2022 | March 31, 2022 | 0.075 | |||||||||||||||
Total for the Quarter: | $ | 0.345 |
Record Date | Payment Date | Distribution per Common Share | Dividend per Share of Series E Term Preferred Stock | |||||||
July 23, 2021 | July 30, 2021 | $ | 0.07 | $ | 0.13281250 | |||||
August 23, 2021 | August 31, 2021 | 0.07 | 0.13281250 | |||||||
September 3, 2021 | September 15, 2021 | 0.03 | (A) | — | ||||||
September 22, 2021 | September 30, 2021 | 0.07 | 0.13281250 | |||||||
|
|
|
| |||||||
Total for the Quarter: | $ | 0.24 | $ | 0.39843750 | ||||||
|
|
|
|
|
common stockholders.
For the Three Months Ended June 30, | ||||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Interest income | $ | 15,992 | $ | 10,525 | $ | 5,467 | 51.9 | % | ||||||||
Dividend and success fee income | 2,034 | 182 | 1,852 | NM | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 18,026 | 10,707 | 7,319 | 68.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Base management fee | 3,320 | 2,856 | 464 | 16.2 | ||||||||||||
Loan servicing fee | 1,868 | 1,709 | 159 | 9.3 | ||||||||||||
Incentive fee | 12,248 | (754 | ) | 13,002 | NM | |||||||||||
Administration fee | 399 | 446 | (47 | ) | (10.5 | ) | ||||||||||
Interest and dividend expense | 3,804 | 3,019 | 785 | 26.0 | ||||||||||||
Amortization of deferred financing costs and discounts | 456 | 374 | 82 | 21.9 | ||||||||||||
Other | 1,354 | 1,328 | 26 | 2.0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses before credits from Adviser | 23,449 | 8,978 | 14,471 | 161.2 | ||||||||||||
Credits to fees from Adviser | (3,119 | ) | (2,444 | ) | (675 | ) | 27.6 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses, net of credits to fees | 20,330 | 6,534 | 13,796 | 211.1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INVESTMENT (LOSS) INCOME | (2,304 | ) | 4,173 | (6,477 | ) | (155.2 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain on investments | 1,929 | 753 | 1,176 | 156.2 | ||||||||||||
Net unrealized appreciation (depreciation) of investments | 47,514 | (4,887 | ) | 52,401 | NM | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | 49,443 | (4,134 | ) | 53,577 | NM | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 47,139 | $ | 39 | $ | 47,100 | NM | |||||||||
|
|
|
|
|
|
|
| |||||||||
BASIC AND DILUTED PER COMMON SHARE: | ||||||||||||||||
Net investment (loss) income | $ | (0.07 | ) | $ | 0.13 | $ | (0.20 | ) | (153.8 | )% | ||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | $ | 1.42 | $ | — | $ | 1.42 | NM | |||||||||
|
|
|
|
|
|
|
|
For the Three Months Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
INVESTMENT INCOME | |||||||||||||||||||||||
Interest income | $ | 13,344 | $ | 12,148 | $ | 1,196 | 9.8 | % | |||||||||||||||
Dividend and success fee income | 3,398 | 5,224 | (1,826) | (35.0) | % | ||||||||||||||||||
Total investment income | 16,742 | 17,372 | (630) | (3.6) | % | ||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Base management fee | 3,630 | 3,116 | 514 | 16.5 | % | ||||||||||||||||||
Loan servicing fee | 1,768 | 1,786 | (18) | (1.0) | % | ||||||||||||||||||
Incentive fee | 2,587 | 3,756 | (1,169) | (31.1) | % | ||||||||||||||||||
Administration fee | 437 | 382 | 55 | 14.4 | % | ||||||||||||||||||
Interest and dividend expense | 3,918 | 3,383 | 535 | 15.8 | % | ||||||||||||||||||
Amortization of deferred financing costs and discounts | 447 | 451 | (4) | (0.9) | % | ||||||||||||||||||
Other | 1,006 | 818 | 188 | 23.0 | % | ||||||||||||||||||
Expenses before credits from Adviser | 13,793 | 13,692 | 101 | 0.7 | % | ||||||||||||||||||
Credits to fees from Adviser | (5,450) | (2,575) | (2,875) | 111.7 | % | ||||||||||||||||||
Total expenses, net of credits to fees | 8,343 | 11,117 | (2,774) | (25.0) | % | ||||||||||||||||||
NET INVESTMENT INCOME | 8,399 | 6,255 | 2,144 | 34.3 | % | ||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | |||||||||||||||||||||||
Net realized gain on investments | 22,049 | 9,105 | 12,944 | 142.2 | % | ||||||||||||||||||
Net unrealized depreciation of investments | (20,102) | (89) | (20,013) | NM | |||||||||||||||||||
Net realized and unrealized gain (loss) | 1,947 | 9,016 | (7,069) | NM | |||||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 10,346 | $ | 15,271 | $ | (4,925) | (32.3) | % | |||||||||||||||
WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING | |||||||||||||||||||||||
Basic and diluted | 33,205,023 | 33,205,023 | — | — | |||||||||||||||||||
BASIC AND DILUTED PER COMMON SHARE: | |||||||||||||||||||||||
Net investment income | $ | 0.25 | $ | 0.19 | $ | 0.06 | 31.6 | % | |||||||||||||||
Net increase in net assets resulting from operations | $ | 0.31 | $ | 0.46 | $ | (0.15) | (32.6) | % |
Dividend and success fee income for the three months ended June 30,December 31, 2021 increased $1.9decreased $1.8 million from the prior year period. During the three months ended June 30,December 31, 2021, dividend and success fee income primarily consisted of $2.0$3.4 million of success fee income. During the three months ended June 30,December 31, 2020, dividend and success fee income consisted primarily of $0.2$5.0 million of success feedividend income.
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Average total assets subject to base management fee(A) | $ | 664,000 | $ | 571,200 | ||||
Multiplied by prorated annual base management fee of 2.0% | 0.5 | % | 0.5 | % | ||||
|
|
|
| |||||
Base management fee(B) | 3,320 | 2,856 | ||||||
Credits to fees from Adviser — other(B) | (1,251 | ) | (735 | ) | ||||
|
|
|
| |||||
Net base management fee | $ | 2,069 | $ | 2,121 | ||||
|
|
|
| |||||
Loan servicing fee(B) | 1,868 | 1,709 | ||||||
Credits to base management fee — loan servicing fee(B) | (1,868 | ) | (1,709 | ) | ||||
|
|
|
| |||||
Net loan servicing fee | $ | — | $ | — | ||||
|
|
|
| |||||
Incentive fee — income-based | $ | 1,938 | $ | — | ||||
Incentive fee — capital gains-based(C) | 10,310 | (754 | ) | |||||
|
|
|
| |||||
Total incentive fee(B) | $ | 12,248 | $ | (754 | ) | |||
Credits to fees from Adviser — other(B) | — | — | ||||||
|
|
|
| |||||
Net total incentive fee | $ | 12,248 | $ | (754 | ) | |||
|
|
|
|
|
|
|
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Average total assets subject to base management fee(A) | $ | 726,000 | $ | 623,200 | |||||||
Multiplied by prorated annual base management fee of 2.0% | 0.5 | % | 0.5 | % | |||||||
Base management fee(B) | $ | 3,630 | $ | 3,116 | |||||||
Credits to fees from Adviser - other(B) | (3,682) | (789) | |||||||||
Net base management fee | $ | (52) | $ | 2,327 | |||||||
Loan servicing fee(B) | $ | 1,768 | $ | 1,786 | |||||||
Credits to base management fee - loan servicing fee(B) | (1,768) | (1,786) | |||||||||
Net loan servicing fee | $ | — | $ | — | |||||||
Incentive fee – income-based | $ | 2,197 | $ | 2,002 | |||||||
Incentive fee – capital gains-based(C) | 390 | 1,754 | |||||||||
Total incentive fee(B) | $ | 2,587 | $ | 3,756 | |||||||
Credits to fees from Adviser - other(B) | — | — | |||||||||
Net total incentive fee | $ | 2,587 | $ | 3,756 |
Net Realized Gain (Loss) on Investments
During the three months ended June 30, 2021, we recorded net realized gains on investments of $1.9 million, primarily related to a $3.6 million realized gain from the exit of Head Country, partially offset by a $1.8 million realized loss from the dissolution of CTG. During the three months ended June 30, 2020, we recorded net realized gains on investments of $0.8 million related to previous exits.
Net Unrealized Appreciation (Depreciation) of Investments
During the three months ended June 30, 2021, we recorded net unrealized appreciation of investments of $47.5 million.
Three Months Ended June 30, 2021 | ||||||||||||||||
Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) | ||||||||||||
B+T Group Acquisition, Inc. | $ | — | $ | 11,297 | $ | — | $ | 11,297 | ||||||||
Old World Christmas, Inc. | — | 8,650 | — | 8,650 | ||||||||||||
SOG Specialty Knives and Tools, LLC | — | 5,785 | — | 5,785 | ||||||||||||
Educators Resource, Inc. | — | 5,204 | — | 5,204 | ||||||||||||
Schylling, Inc. | — | 4,244 | — | 4,244 | ||||||||||||
PSI Molded Plastics, Inc. | — | 3,633 | — | 3,633 | ||||||||||||
Horizon Facilities Service, Inc. | — | 3,435 | — | 3,435 | ||||||||||||
Basset Creek Services, Inc. | — | 3,013 | — | 3,013 | ||||||||||||
ImageWorks Display and Marketing Group, Inc. | — | 2,364 | — | 2,364 | ||||||||||||
Counsel Press, Inc. | — | 2,141 | — | 2,141 | ||||||||||||
Galaxy Tool Holding Corporation | — | 1,404 | — | 1,404 | ||||||||||||
Brunswick Bowling Products, Inc. | — | 1,172 | — | 1,172 | ||||||||||||
Head Country, Inc. | 3,627 | — | (2,469 | ) | 1,158 | |||||||||||
Channel Technologies Group, LLC | (1,841 | ) | — | 1,841 | — | |||||||||||
Diligent Delivery Systems | — | (669 | ) | — | (669 | ) | ||||||||||
The Maids International, LLC | — | (819 | ) | — | (819 | ) | ||||||||||
Mason West, LLC | — | (891 | ) | — | (891 | ) | ||||||||||
Pioneer Square Brands, Inc. | — | (1,462 | ) | — | (1,462 | ) | ||||||||||
Other, net (<$1.0 million, net) | 143 | (411 | ) | 52 | (216 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,929 | $ | 48,090 | $ | (576 | ) | $ | 49,443 | |||||||
|
|
|
|
|
|
|
|
The primary drivers
Three Months Ended December 31, 2021 | ||||||||||||||||||||||||||
Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) | ||||||||||||||||||||||
Brunswick Bowling Products, Inc. | $ | — | $ | 10,344 | $ | — | $ | 10,344 | ||||||||||||||||||
Horizon Facilities Service, Inc. | — | 5,129 | — | 5,129 | ||||||||||||||||||||||
Schylling, Inc. | — | 2,931 | — | 2,931 | ||||||||||||||||||||||
ImageWorks Display and Marketing Group, Inc. | — | 1,019 | — | 1,019 | ||||||||||||||||||||||
The Maids International, LLC | — | (1,216) | — | (1,216) | ||||||||||||||||||||||
J.R. Hobbs Co. – Atlanta, LLC | — | (1,575) | — | (1,575) | ||||||||||||||||||||||
Mason West, LLC | — | (3,390) | — | (3,390) | ||||||||||||||||||||||
Pioneer Square Brands, Inc. | 21,939 | — | (25,425) | (3,486) | ||||||||||||||||||||||
Counsel Press, Inc. | — | (3,679) | — | (3,679) | ||||||||||||||||||||||
Galaxy Technologies Holdings, Inc. | — | (4,464) | — | (4,464) | ||||||||||||||||||||||
Other, net (<$1.0 million, net) | 110 | 224 | — | 334 | ||||||||||||||||||||||
Total | $ | 22,049 | $ | 5,323 | $ | (25,425) | $ | 1,947 |
Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||
Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) | ||||||||||||||||||||||
Pioneer Square Brands, Inc. | $ | — | $ | 4,420 | $ | — | $ | 4,420 | ||||||||||||||||||
Educators Resource, Inc. | — | 3,488 | — | 3,488 | ||||||||||||||||||||||
Old World Christmas, Inc. | 3,289 | 27 | — | 3,316 | ||||||||||||||||||||||
Diligent Delivery Systems | — | 2,961 | — | 2,961 | ||||||||||||||||||||||
Frontier Packaging, Inc. | 14,032 | — | (11,869) | 2,163 | ||||||||||||||||||||||
SOG Specialty Knives and Tools, LLC | — | 1,806 | — | 1,806 | ||||||||||||||||||||||
Schylling, Inc. | — | 1,138 | — | 1,138 | ||||||||||||||||||||||
Head Country, Inc. | — | 916 | — | 916 | ||||||||||||||||||||||
Horizon Facilities Service, Inc. | — | 909 | — | 909 | ||||||||||||||||||||||
The Maids International, LLC | — | 495 | — | 495 | ||||||||||||||||||||||
Ginsey Home Solutions, Inc. | — | 480 | — | 480 | ||||||||||||||||||||||
Bassett Creek Services, Inc. | — | 469 | — | 469 | ||||||||||||||||||||||
PSI Molded Plastics, Inc. | — | 459 | — | 459 | ||||||||||||||||||||||
ImageWorks Display and Marketing Group, Inc. | — | (1,411) | — | (1,411) | ||||||||||||||||||||||
D.P.M.S., Inc. | — | (1,805) | — | (1,805) | ||||||||||||||||||||||
Brunswick Bowling Products, Inc. | — | (4,825) | — | (4,825) | ||||||||||||||||||||||
SBS Industries Holdings, Inc. | (8,470) | 1,580 | — | (6,890) | ||||||||||||||||||||||
Other, net (<$1.0 million, net) | 254 | 673 | — | 927 | ||||||||||||||||||||||
Total | $ | 9,105 | $ | 11,780 | $ | (11,869) | $ | 9,016 |
During the three months ended June 30, 2020,Across our entire investment portfolio, we recorded net unrealized depreciation of $1.9 million and $18.2 million on our debt and on our equity positions, respectively, for the three months ended December 31, 2021. As of December 31, 2021, the fair value of our investment portfolio was more than the cost basis by $25.2 million, as compared to September 30, 2021, when the fair value of our investment portfolio was more than the cost basis by $45.3 million, representing net unrealized depreciation of $20.1 million for the three months ended December 31, 2021. Our entire portfolio had a fair value of 103.7% of cost as of December 31, 2021.
For the Nine Months Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
INVESTMENT INCOME | |||||||||||||||||||||||
Interest income | $ | 43,634 | $ | 34,513 | $ | 9,121 | 26.4 | % | |||||||||||||||
Dividend and success fee income | 9,672 | 5,406 | 4,266 | 78.9 | % | ||||||||||||||||||
Total investment income | 53,306 | 39,919 | 13,387 | 33.5 | % | ||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Base management fee | 10,527 | 8,961 | 1,566 | 17.5 | % | ||||||||||||||||||
Loan servicing fee | 5,430 | 5,242 | 188 | 3.6 | % | ||||||||||||||||||
Incentive fee | 22,186 | 3,454 | 18,732 | NM | |||||||||||||||||||
Administration fee | 1,407 | 1,218 | 189 | 15.5 | % | ||||||||||||||||||
Interest and dividend expense | 11,606 | 9,615 | 1,991 | 20.7 | % | ||||||||||||||||||
Amortization of deferred financing costs and discounts | 1,355 | 1,291 | 64 | 5.0 | % | ||||||||||||||||||
Other | 3,828 | 3,178 | 650 | 20.5 | % | ||||||||||||||||||
Expenses before credits from Adviser | 56,339 | 32,959 | 23,380 | 70.9 | % | ||||||||||||||||||
Credits to fees from Adviser | (11,293) | (7,836) | (3,457) | 44.1 | % | ||||||||||||||||||
Total expenses, net of credits to fees | 45,046 | 25,123 | 19,923 | 79.3 | % | ||||||||||||||||||
NET INVESTMENT INCOME | 8,260 | 14,796 | (6,536) | (44.2 | %) | ||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | |||||||||||||||||||||||
Net realized gain on investments | 24,442 | 10,479 | 13,963 | 133.2 | % | ||||||||||||||||||
Net realized loss on other | (1,998) | — | (1,998) | NM | |||||||||||||||||||
Net unrealized appreciation (depreciation) of investments | 54,916 | (3,335) | 58,251 | NM | |||||||||||||||||||
Net realized and unrealized gain (loss) | 77,360 | 7,144 | 70,216 | NM | |||||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 85,620 | $ | 21,940 | $ | 63,680 | 290.2 | % | |||||||||||||||
WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING | |||||||||||||||||||||||
Basic and diluted | 33,205,023 | 33,167,511 | 37,512 | 0.1 | % | ||||||||||||||||||
BASIC AND DILUTED PER COMMON SHARE: | |||||||||||||||||||||||
Net investment income | $ | 0.25 | $ | 0.45 | $ | (0.20) | (44.4 | %) | |||||||||||||||
Net increase in net assets resulting from operations | $ | 2.58 | $ | 0.66 | $ | 1.92 | NM |
Nine Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Average total assets subject to base management fee(A) | $ | 701,800 | $ | 597,400 | |||||||
Multiplied by prorated annual base management fee of 2.0% | 1.5 | % | 1.5 | % | |||||||
Base management fee(B) | 10,527 | 8,961 | |||||||||
Credits to fees from Adviser - other(B) | (5,863) | (2,594) | |||||||||
Net base management fee | $ | 4,664 | $ | 6,367 | |||||||
Loan servicing fee(B) | 5,430 | 5,242 | |||||||||
Credits to base management fee - loan servicing fee(B) | (5,430) | (5,242) | |||||||||
Net loan servicing fee | $ | — | $ | — | |||||||
Incentive fee – income-based | $ | 5,892 | $ | 2,002 | |||||||
Incentive fee – capital gains-based(C) | 16,294 | 1,452 | |||||||||
Total incentive fee(B) | $ | 22,186 | $ | 3,454 | |||||||
Credits to fees from Adviser - other(B) | — | — | |||||||||
Net total incentive fee | $ | 22,186 | $ | 3,454 |
Three Months Ended June 30, 2020 | ||||||||||||||||
Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) | ||||||||||||
Pioneer Square Brands, Inc. | $ | — | $ | 4,348 | $ | — | $ | 4,348 | ||||||||
Galaxy Tool Holding Corporation | — | 2,693 | — | 2,693 | ||||||||||||
Edge Adhesives Holdings, Inc. | — | 1,700 | — | 1,700 | ||||||||||||
Ginsey Home Solutions, Inc. | — | 1,257 | — | 1,257 | ||||||||||||
Head Country, Inc. | — | 881 | — | 881 | ||||||||||||
The Mountain Corporation | — | (1,249 | ) | — | (1,249 | ) | ||||||||||
ImageWorks Display and Marketing Group, Inc. | — | (1,353 | ) | — | (1,353 | ) | ||||||||||
Bassett Creek Services, Inc. | — | (2,063 | ) | — | (2,063 | ) | ||||||||||
Horizon Facilities Service, Inc. | — | (2,205 | ) | — | (2,205 | ) | ||||||||||
Nth Degree, Inc. | — | (3,649 | ) | — | (3,649 | ) | ||||||||||
Brunswick Bowling Products, Inc. | — | (4,616 | ) | — | (4,616 | ) | ||||||||||
Other, net (<$1.0 million, net) | 753 | (631 | ) | — | 122 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 753 | $ | (4,887 | ) | $ | — | $ | (4,134 | ) | ||||||
|
|
|
|
|
|
|
|
The primary driver
Nine Months Ended December 31, 2021 | ||||||||||||||||||||||||||
Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) | ||||||||||||||||||||||
B+T Group Acquisition, Inc. | $ | — | $ | 15,279 | $ | — | $ | 15,279 | ||||||||||||||||||
Brunswick Bowling Products, Inc. | — | 13,842 | — | 13,842 | ||||||||||||||||||||||
Old World Christmas, Inc. | — | 13,559 | — | 13,559 | ||||||||||||||||||||||
Schylling, Inc. | — | 13,453 | — | 13,453 | ||||||||||||||||||||||
Horizon Facilities Service, Inc. | — | 11,547 | — | 11,547 | ||||||||||||||||||||||
Educators Resource, Inc. | — | 8,876 | — | 8,876 | ||||||||||||||||||||||
Bassett Creek Services, Inc. | — | 7,877 | — | 7,877 | ||||||||||||||||||||||
SOG Specialty Knives & Tools, LLC | — | 7,575 | — | 7,575 | ||||||||||||||||||||||
ImageWorks Display and Marketing Group, Inc. | — | 6,321 | — | 6,321 | ||||||||||||||||||||||
PSI Molded Plastics, Inc. | — | 3,633 | — | 3,633 | ||||||||||||||||||||||
Counsel Press, Inc. | — | 3,366 | — | 3,366 | ||||||||||||||||||||||
Nocturne Villa Rentals, Inc. | — | 1,504 | — | 1,504 | ||||||||||||||||||||||
Galaxy Technologies Holdings, Inc. | — | 1,404 | — | 1,404 | ||||||||||||||||||||||
Head Country, Inc. | 3,627 | — | (2,469) | 1,158 | ||||||||||||||||||||||
Channel Technologies Group, LLC | (1,841) | — | 1,841 | — | ||||||||||||||||||||||
Diligent Delivery Systems | — | (903) | — | (903) | ||||||||||||||||||||||
Mason West, LLC | — | (2,217) | — | (2,217) | ||||||||||||||||||||||
SBS Industries Holdings, Inc. | — | (3,314) | — | (3,314) | ||||||||||||||||||||||
Ginsey Home Solutions, Inc. | — | (4,012) | — | (4,012) | ||||||||||||||||||||||
J.R. Hobbs Co. – Atlanta, LLC | — | (4,085) | — | (4,085) | ||||||||||||||||||||||
Pioneer Square Brands, Inc. | 21,939 | (1,245) | (25,425) | (4,731) | ||||||||||||||||||||||
Galaxy Technologies Holdings, Inc. | — | (10,784) | — | (10,784) | ||||||||||||||||||||||
Other, net (<$1.0 million, net) | 717 | (759) | 52 | 10 | ||||||||||||||||||||||
Total | $ | 24,442 | $ | 80,917 | $ | (26,001) | $ | 79,358 |
Nine Months Ended December 31, 2020 | ||||||||||||||||||||||||||
Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) | ||||||||||||||||||||||
Pioneer Square Brands, Inc. | $ | — | $ | 20,635 | $ | — | $ | 20,635 | ||||||||||||||||||
Frontier Packaging, Inc. | 14,032 | 2,534 | (11,869) | 4,697 | ||||||||||||||||||||||
Ginsey Home Solutions, Inc. | — | 4,151 | — | 4,151 | ||||||||||||||||||||||
SOG Specialty Knives and Tools, LLC | — | 3,964 | — | 3,964 | ||||||||||||||||||||||
Educators Resource, Inc. | — | 3,335 | — | 3,335 | ||||||||||||||||||||||
Old World Christmas, Inc. | 3,289 | 37 | — | 3,326 | ||||||||||||||||||||||
Diligent Delivery Systems | — | 2,409 | — | 2,409 | ||||||||||||||||||||||
Galaxy Technologies, Inc. | — | 2,173 | — | 2,173 | ||||||||||||||||||||||
Head Country, Inc. | — | 1,762 | — | 1,762 | ||||||||||||||||||||||
Schylling, Inc. | — | 1,069 | — | 1,069 | ||||||||||||||||||||||
Cambridge Sound Management, Inc. | 740 | — | — | 740 | ||||||||||||||||||||||
ImageWorks Display and Marketing Group, Inc. | — | (1,312) | — | (1,312) | ||||||||||||||||||||||
Bassett Creek Services, Inc. | — | (1,359) | — | (1,359) | ||||||||||||||||||||||
Counsel Press, Inc. | — | (1,850) | — | (1,850) | ||||||||||||||||||||||
Nth Degree, Inc. | 113 | (3,649) | — | (3,536) | ||||||||||||||||||||||
PSI Molded Plastics, Inc. | — | (3,755) | — | (3,755) | ||||||||||||||||||||||
D.P.M.S., Inc. | — | (4,442) | — | (4,442) | ||||||||||||||||||||||
SBS Industries Holdings, Inc. | (8,470) | 1,580 | — | (6,890) | ||||||||||||||||||||||
Brunswick Bowling Products, Inc. | — | (18,048) | — | (18,048) | ||||||||||||||||||||||
Other, net (<$1.0 million, net) | 775 | (700) | — | 75 | ||||||||||||||||||||||
Total | $ | 10,479 | $ | 8,534 | $ | (11,869) | $ | 7,144 |
Purchases of investments were $17.2 million during the three months ended June 30, 2021, compared to $0.3 million during the three months ended June 30, 2020.
Purchases of investments were $84.6 million during the nine months ended December 31, 2021, compared to $89.6 million during the nine months ended December 31, 2020.
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Beginning investment portfolio, at fair value | $ | 633,829 | $ | 565,924 | ||||
New investments | 9,950 | — | ||||||
Disbursements to existing portfolio companies | 7,200 | 300 | ||||||
Unscheduled principal repayments | (14,060 | ) | — | |||||
Net proceeds from sales of investments | (7,648 | ) | — | |||||
Net realized gain on investments | 1,804 | — | ||||||
Net unrealized appreciation (depreciation) of investments | 48,090 | (4,887 | ) | |||||
Reversal of net unrealized appreciation of investments | (576 | ) | — | |||||
Amortization of premiums, discounts, and acquisition costs, net | 5 | 5 | ||||||
|
|
|
| |||||
Ending investment portfolio, at fair value | $ | 678,594 | $ | 561,342 | ||||
|
|
|
|
Nine Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Beginning investment portfolio, at fair value | $ | 633,829 | $ | 565,924 | |||||||
New investments | 34,200 | 46,902 | |||||||||
Disbursements to existing portfolio companies | 50,350 | 42,669 | |||||||||
Unscheduled principal repayments | (46,898) | (20,734) | |||||||||
Net proceeds from sales of investments | (49,421) | (29,410) | |||||||||
Net realized gain on investments | 23,748 | 8,858 | |||||||||
Net unrealized appreciation (depreciation) of investments | 80,917 | 8,534 | |||||||||
Reversal of net unrealized appreciation of investments | (26,001) | (11,869) | |||||||||
Amortization of premiums, discounts, and acquisition costs, net | 14 | 14 | |||||||||
Ending investment portfolio, at fair value | $ | 700,738 | $ | 610,888 |
Amount | ||||||
For the remaining nine months ending March 31: | 2022 | $ | 30,261 | |||
For the fiscal years ending March 31: | 2023 | 114,750 | ||||
2024 | 118,350 | |||||
2025 | 171,777 | |||||
2026 | 52,250 | |||||
Thereafter | 2,850 | |||||
|
| |||||
Total contractual repayments | $ | 490,238 | ||||
Adjustments to cost basis of debt investments | (26 | ) | ||||
Investments in equity securities | 170,602 | |||||
|
| |||||
Total cost basis of investments held as of June 30, 2021: | $ | 660,814 | ||||
|
|
Amount | ||||||||||||||
For the remaining three months ending March 31: | 2022 | $ | 4,000 | |||||||||||
For the fiscal years ending March 31: | 2023 | 90,950 | ||||||||||||
2024 | 96,168 | |||||||||||||
2025 | 204,187 | |||||||||||||
2026 | 52,250 | |||||||||||||
Thereafter | 71,246 | |||||||||||||
Total contractual repayments | $ | 518,801 | ||||||||||||
Adjustments to cost basis of debt investments | (17) | |||||||||||||
Investments in equity securities | 156,772 | |||||||||||||
Total cost basis of investments held as of December 31, 2021: | $ | 675,556 |
Net cash used in financing activities for the three months ended June 30, 2020 was $4.1 million, which consisted primarily of $10.3$34.8 million of net borrowings under the Credit Facility, $2.3$19.3 million of netgross proceeds from the issuance of mandatorily redeemable preferred stock under the then existing Series E ATM Program, and $1.7 million of netgross proceeds from the issuance of common stock under the then existing Common Stock ATM Program, partially offset by $9.9$23.9 million in distributions to common stockholders.
Distributions and Dividends to Stockholders
January 2022.
Common Stock
Sales Agents.
At our 2020 Annual Meeting
Ourdate, prior to redemption in August 2021. Prior to redemption in August 2021, the Series E Term Preferred Stock is not convertible into our common stock or any other security and provides provided
In August 2018, we used the proceeds from the initial issuance of our Series E Term Preferred Stock, along with borrowings under the Credit Facility, to voluntarily redeem all outstanding shares of our 6.750% Series B Cumulative Term Preferred Stock (our “Series B Term Preferred Stock”) and our 6.500% Series C Cumulative Term Preferred Stock (our “Series C Term Preferred Stock”), each of which had a liquidation preference of $25.00 per share. In connection with the voluntary redemption of our Series B Term Preferred Stock and our Series C Term Preferred Stock, we incurred a loss on extinguishment of debt of $1.7 million, which was recorded in Realized loss on other in our accompanying Consolidated Statements of Operations and which was primarily comprised of unamortized deferred issuance costs at the time of redemption.
monthly.
We did not sell any shares of our Series E Term Preferred Stock under the Series E ATM Program during the threenine months ended June 30,December 31, 2021. During the year ended March 31, 2021, we sold 784,853 shares of our Series E Term Preferred Stock under the Series E ATM Program with an aggregate liquidation preference of $19.6 million. The weighted-average gross price per share net of discounts was $24.56 and resulted in gross proceeds of approximately $19.3 million. After deducting commissions and offering costs borne by us, net proceeds totaled approximately $19.1 million.
Our mandatorily redeemable preferred stock has Prior to redemption in March 2021, the Series D Term Preferred Stock provided
redemption.
Contents
At December 31, 2021, we had no borrowings outstanding on the Credit Facility.
Notes Payable
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations(A) | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
Credit Facility(B) | $ | 41,900 | $ | — | $ | — | $ | 41,900 | $ | — | ||||||||||
Notes payable | 127,938 | — | — | 127,938 | — | |||||||||||||||
Mandatorily redeemable preferred stock | 94,371 | — | — | 94,371 | — | |||||||||||||||
Secured borrowing | 5,096 | — | — | 5,096 | — | |||||||||||||||
Interest payments on obligations(C) | 70,438 | 15,598 | 31,205 | 23,635 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 339,743 | $ | 15,598 | $ | 31,205 | $ | 292,940 | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments Due by Period | ||||||||||||||||||||||||||||||||
Contractual Obligations(A) | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||||||||||||||
Credit Facility(B) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Notes payable | 262,488 | — | — | 127,938 | 134,550 | |||||||||||||||||||||||||||
Secured borrowing | 5,096 | — | — | 5,096 | — | |||||||||||||||||||||||||||
Interest payments on obligations(C) | 81,231 | 15,143 | 30,292 | 23,771 | 12,025 | |||||||||||||||||||||||||||
Total | $ | 348,815 | $ | 15,143 | $ | 30,292 | $ | 156,805 | $ | 146,575 |
Rating | June 30, 2021 | March 31, 2021 | ||||||
Highest | 9.0 | 9.0 | ||||||
Average | 6.6 | 6.2 | ||||||
Weighted-average | 7.1 | 6.6 | ||||||
Lowest | 4.0 | 4.0 |
Rating | December 31, 2021 | March 31, 2021 | ||||||||||||
Highest | 9.0 | 9.0 | ||||||||||||
Average | 6.6 | 6.2 | ||||||||||||
Weighted-average | 6.6 | 6.6 | ||||||||||||
Lowest | 3.0 | 4.0 |
|
Rates: | June 30, 2021 | March 31, 2021 | ||||||
Variable rates with a floor | 97.7 | % | 97.7 | % | ||||
Fixed rates | 2.3 | 2.3 | ||||||
|
|
|
| |||||
Total | 100.0 | % | 100.0 | % | ||||
|
|
|
|
Rates: | December 31, 2021 | March 31, 2021 | ||||||||||||
Variable rates with a floor | 100.0 | % | 97.7 | % | ||||||||||
Fixed rates | — | 2.3 | % | |||||||||||
Total | 100.0 | % | 100.0 | % |
|
|
|
|
|
|
|
|
EXHIBIT INDEX
|
|
GLADSTONE INVESTMENT CORPORATION | |||||||||
By: | /s/ | ||||||||
Rachael Easton | |||||||||
Chief Financial Officer and Treasurer | |||||||||
(principal financial and accounting officer) |
61