x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Registrant’s telephone number, including area code: (215) 495-1150
Securities registered pursuant to Section 12(b) Act: None
Delaware (State or other jurisdiction of incorporation or organization) |
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27-6822130 (I.R.S. Employer Identification No.) | ||||||||
201 Rouse Boulevard Philadelphia, Pennsylvania (Address of principal executive office) | 19112 (Zip Code) |
Large accelerated filer ¨ | Accelerated filer ¨ | |||||||||||||
Non-accelerated filer x | Smaller reporting company ¨ | |||||||||||||
Emerging growth company | ¨ |
Title of each class | Trading symbol(s) | Name on each exchange on which registered | ||||||||||||
N/A | N/A | N/A |
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September 30, 2021 (Unaudited) | December 31, 2020 | |||||||
Assets | ||||||||
Investments, at fair value | ||||||||
Non-controlled/unaffiliated investments (amortized cost—$1,899,827 and $2,053,838, respectively) | $ | 1,936,736 | $ | 1,825,470 | ||||
Non-controlled/affiliated investments (amortized cost—$202,741 and $406,430, respectively) | 181,013 | 239,279 | ||||||
Controlled/affiliated investments (amortized cost—$188,094 and $115,137, respectively) | 187,957 | 116,727 | ||||||
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Total investments, at fair value (amortized cost—$2,290,662 and $2,575,405, respectively) | 2,305,706 | 2,181,476 | ||||||
Cash | 71,573 | 142,536 | ||||||
Receivable for investments sold and repaid | 13,176 | 7,691 | ||||||
Interest receivable | 17,902 | 26,705 | ||||||
Prepaid expenses and other assets | 200 | 234 | ||||||
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Total assets | $ | 2,408,557 | $ | 2,358,642 | ||||
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Liabilities | ||||||||
Payable for investments purchased | $ | 80,184 | $ | — | ||||
Credit facilities payable (net of deferred financing costs of $2,602 and $5,816, respectively)(1) | 229,065 | 410,851 | ||||||
Secured note payable (net of deferred financing costs of $3,870 and $5,284, respectively)(1) | 481,417 | 478,521 | ||||||
Shareholder distributions payable | 13,339 | 13,188 | ||||||
Management fees payable | 9,051 | 10,156 | ||||||
Administrative services expense payable | 1,843 | 949 | ||||||
Interest payable | 4,769 | 14,236 | ||||||
Trustees’ fees payable | 189 | 192 | ||||||
Other accrued expenses and liabilities | 1,546 | 1,972 | ||||||
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Total liabilities | 821,403 | 930,065 | ||||||
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Commitments and contingencies(2) | ||||||||
Shareholders’ equity | ||||||||
Preferred shares, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding | — | — | ||||||
Common shares, $0.001 par value, 700,000,000 shares authorized, 444,629,043 and 440,020,123 shares issued and outstanding, respectively | 445 | 440 | ||||||
Capital in excess of par value | 3,168,360 | 3,152,485 | ||||||
Accumulated earnings (deficit) | (1,581,651 | ) | (1,724,348 | ) | ||||
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Total shareholders’ equity | 1,587,154 | 1,428,577 | ||||||
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Total liabilities and shareholders’ equity | $ | 2,408,557 | $ | 2,358,642 | ||||
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Net asset value per common share at period end | $ | 3.57 | $ | 3.25 |
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June 30, 2022 (Unaudited) | December 31, 2021 | |||||||||||||
Assets | ||||||||||||||
Investments, at fair value | ||||||||||||||
Non-controlled/unaffiliated investments (amortized cost—$1,964,688 and $1,961,617, respectively) | $ | 2,177,314 | $ | 2,037,956 | ||||||||||
Non-controlled/affiliated investments (amortized cost—$101,032 and $200,189, respectively) | 78,880 | 175,908 | ||||||||||||
Controlled/affiliated investments (amortized cost—$172,248 and $191,251, respectively) | 175,142 | 181,359 | ||||||||||||
Total investments, at fair value (amortized cost—$2,237,968 and $2,353,057, respectively) | 2,431,336 | 2,395,223 | ||||||||||||
Cash | 131,334 | 33,879 | ||||||||||||
Receivable for investments sold and repaid | 7,291 | 4,975 | ||||||||||||
Interest receivable | 19,432 | 26,242 | ||||||||||||
Dividends receivable | 3,691 | — | ||||||||||||
Prepaid expenses and other assets | 58 | 156 | ||||||||||||
Total assets | $ | 2,593,142 | $ | 2,460,475 | ||||||||||
Liabilities | ||||||||||||||
Payable for investments purchased | $ | 447 | $ | 49,500 | ||||||||||
Credit facilities payable (net of deferred financing costs of $671 and $2,036, respectively)(1) | 305,005 | 284,631 | ||||||||||||
Secured note payable (net of deferred financing costs of $2,257 and $3,350, respectively)(1) | 452,733 | 482,437 | ||||||||||||
Unrealized depreciation on swap contracts | 3,588 | — | ||||||||||||
Swap income payable | 453 | — | ||||||||||||
Shareholder distributions payable | 13,465 | 13,388 | ||||||||||||
Management fees payable | 9,576 | 10,466 | ||||||||||||
Administrative services expense payable | 1,677 | 1,324 | ||||||||||||
Interest payable | 13,232 | 14,170 | ||||||||||||
Trustees' fees payable | 190 | 200 | ||||||||||||
Other accrued expenses and liabilities | 1,521 | 2,036 | ||||||||||||
Total liabilities | 801,887 | 858,152 | ||||||||||||
Commitments and contingencies(2) | ||||||||||||||
Shareholders' equity | ||||||||||||||
Preferred shares, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding | — | — | ||||||||||||
Common shares, $0.001 par value, 700,000,000 shares authorized, 448,830,667 and 446,089,499 shares issued and outstanding, respectively | 449 | 446 | ||||||||||||
Capital in excess of par value | 3,139,709 | 3,129,252 | ||||||||||||
Accumulated earnings (deficit) | (1,348,903) | (1,527,375) | ||||||||||||
Total shareholders' equity | 1,791,255 | 1,602,323 | ||||||||||||
Total liabilities and shareholders' equity | $ | 2,593,142 | $ | 2,460,475 | ||||||||||
Net asset value per common share at period end | $ | 3.99 | $ | 3.59 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Investment income | ||||||||||||||||
From non-controlled/unaffiliated investments: | ||||||||||||||||
Interest income | $ | 20,066 | $ | 28,644 | $ | 69,393 | $ | 125,230 | ||||||||
Paid-in-kind interest income | 7,926 | 4,131 | 20,163 | 13,383 | ||||||||||||
Fee income | 117 | 352 | 1,312 | 862 | ||||||||||||
Dividend income | — | — | — | 66 | ||||||||||||
From non-controlled/affiliated investments: | ||||||||||||||||
Interest income | 1,961 | 5,510 | 5,072 | 20,670 | ||||||||||||
Paid-in-kind interest income | 43 | 5,921 | 175 | 9,153 | ||||||||||||
Dividend income | — | — | 1,574 | — | ||||||||||||
From controlled/affiliated investments: | ||||||||||||||||
Interest income | 2,173 | 1,561 | 6,242 | 1,561 | ||||||||||||
Paid-in-kind interest income | 645 | — | 6,117 | — | ||||||||||||
Dividend income | 4,960 | — | 4,960 | — | ||||||||||||
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Total investment income | 37,891 | 46,119 | 115,008 | 170,925 | ||||||||||||
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Operating expenses | ||||||||||||||||
Management fees | 10,077 | 10,626 | 31,005 | 38,619 | ||||||||||||
Administrative services expenses | 1,457 | 2,628 | 4,480 | 4,937 | ||||||||||||
Share transfer agent fees | 736 | 738 | 2,182 | 1,953 | ||||||||||||
Accounting and administrative fees | 169 | 172 | 516 | 611 | ||||||||||||
Interest expense(1) | 12,783 | 19,834 | 41,017 | 60,152 | ||||||||||||
Trustees’ fees | 189 | 190 | 587 | 597 | ||||||||||||
Other general and administrative expenses | 732 | 1,236 | 2,064 | 4,415 | ||||||||||||
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Total operating expenses | 26,143 | 35,424 | 81,851 | 111,284 | ||||||||||||
Less: Management fee offset(2) | (1,026 | ) | (2 | ) | (1,349 | ) | (452 | ) | ||||||||
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Net expenses | 25,117 | 35,422 | 80,502 | 110,832 | ||||||||||||
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Net investment income | 12,774 | 10,697 | 34,506 | 60,093 | ||||||||||||
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Realized and unrealized gain/loss | ||||||||||||||||
Net realized gain (loss) on investments: | ||||||||||||||||
Non-controlled/unaffiliated | 1,509 | (176,011 | ) | 22,012 | (503,067 | ) | ||||||||||
Non-controlled/affiliated | 116 | (309,777 | ) | (282,893 | ) | (427,633 | ) | |||||||||
Controlled/affiliated | — | — | — | (27,464 | ) | |||||||||||
Net realized gain (loss) on foreign currency | — | — | (6 | ) | — | |||||||||||
Net realized gain (loss) on swap contracts | — | — | — | 20,250 | ||||||||||||
Net realized gain (loss) on debt extinguishment | — | — | — | 2,591 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments: | ||||||||||||||||
Non-controlled/unaffiliated | 57,390 | 145,014 | 265,277 | (203,544 | ) | |||||||||||
Non-controlled/affiliated | (11,500 | ) | 323,167 | 145,423 | 183,156 | |||||||||||
Controlled/affiliated | 3,104 | 447 | (1,727 | ) | 27,608 | |||||||||||
Net change in unrealized appreciation (depreciation) on swap contracts | — | — | — | (6,551 | ) | |||||||||||
Net change in unrealized gain (loss) on foreign currency | (21 | ) | 6 | (13 | ) | (9 | ) | |||||||||
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Total net realized and unrealized gain (loss) | 50,598 | (17,154 | ) | 148,073 | (934,663 | ) | ||||||||||
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Net increase (decrease) in net assets resulting from operations | $ | 63,372 | $ | (6,457 | ) | $ | 182,579 | $ | (874,570 | ) | ||||||
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Per share information—basic and diluted | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations (Earnings per Share) | $ | 0.14 | $ | (0.01 | ) | $ | 0.41 | $ | (2.00 | ) | ||||||
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Weighted average shares outstanding | 444,498,317 | 438,305,464 | 443,021,423 | 436,850,956 | ||||||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||
From non-controlled/unaffiliated investments: | ||||||||||||||||||||||||||
Interest income | $ | 23,713 | $ | 23,268 | $ | 46,853 | $ | 49,327 | ||||||||||||||||||
Paid-in-kind interest income | 7,098 | 3,898 | 11,521 | 12,237 | ||||||||||||||||||||||
Fee income | 9,226 | 679 | 10,459 | 1,195 | ||||||||||||||||||||||
Dividend income | — | 1,574 | — | 1,574 | ||||||||||||||||||||||
From non-controlled/affiliated investments: | ||||||||||||||||||||||||||
Interest income | 1,030 | 2,025 | 2,940 | 3,111 | ||||||||||||||||||||||
Paid-in-kind interest income | 22 | 60 | 57 | 132 | ||||||||||||||||||||||
Dividend income | 3,691 | — | 5,417 | — | ||||||||||||||||||||||
From controlled/affiliated investments: | ||||||||||||||||||||||||||
Interest income | 2,072 | 2,049 | 4,109 | 4,069 | ||||||||||||||||||||||
Paid-in-kind interest income | 221 | 5,403 | 891 | 5,472 | ||||||||||||||||||||||
Dividend income | — | — | 735 | — | ||||||||||||||||||||||
Total investment income | 47,073 | 38,956 | 82,982 | 77,117 | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Management fees | 11,276 | 10,278 | 22,011 | 20,928 | ||||||||||||||||||||||
Administrative services expenses | 1,490 | 1,442 | 2,910 | 3,023 | ||||||||||||||||||||||
Share transfer agent fees | 728 | 728 | 1,448 | 1,446 | ||||||||||||||||||||||
Accounting and administrative fees | 189 | 161 | 366 | 347 | ||||||||||||||||||||||
Interest expense(1) | 13,196 | 12,744 | 26,890 | 28,234 | ||||||||||||||||||||||
Trustees' fees | 190 | 191 | 417 | 398 | ||||||||||||||||||||||
Other general and administrative expenses | 868 | 660 | 2,312 | 1,332 | ||||||||||||||||||||||
Total operating expenses | 27,937 | 26,204 | 56,354 | 55,708 | ||||||||||||||||||||||
Less: Management fee offset(2) | (1,700) | (321) | (2,398) | (323) | ||||||||||||||||||||||
Net expenses | 26,237 | 25,883 | 53,956 | 55,385 | ||||||||||||||||||||||
Net investment income | 20,836 | 13,073 | 29,026 | 21,732 | ||||||||||||||||||||||
Realized and unrealized gain/loss | ||||||||||||||||||||||||||
Net realized gain (loss) on investments: | ||||||||||||||||||||||||||
Non-controlled/unaffiliated | (3,938) | 20,943 | (20,602) | 20,503 | ||||||||||||||||||||||
Non-controlled/affiliated | 53,584 | (283,009) | 41,204 | (283,009) | ||||||||||||||||||||||
Controlled/affiliated | 10,858 | — | 10,858 | — | ||||||||||||||||||||||
Net realized gain (loss) on foreign currency | — | (6) | — | (6) | ||||||||||||||||||||||
Net realized gain (loss) on swap contracts | (1,392) | — | (1,808) | — | ||||||||||||||||||||||
Net realized gain (loss) on debt extinguishment | (183) | — | (929) | — | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments: | ||||||||||||||||||||||||||
Non-controlled/unaffiliated | 784 | 58,661 | 136,287 | 207,887 | ||||||||||||||||||||||
Non-controlled/affiliated | (53,922) | 163,364 | 2,129 | 156,923 | ||||||||||||||||||||||
Controlled/affiliated | (10,941) | 6,391 | 12,786 | (4,831) | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on swap contracts | (106) | — | (3,588) | — | ||||||||||||||||||||||
Net change in unrealized gain (loss) on foreign currency | — | 4 | — | 8 | ||||||||||||||||||||||
Total net realized and unrealized gain (loss) | (5,256) | (33,652) | 176,337 | 97,475 | ||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 15,580 | $ | (20,579) | $ | 205,363 | $ | 119,207 | ||||||||||||||||||
Per share information—basic and diluted | ||||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations (Earnings per Share) | $ | 0.03 | $ | (0.05) | $ | 0.46 | $ | 0.27 | ||||||||||||||||||
Weighted average shares outstanding | 448,730,149 | 443,011,321 | 448,070,934 | 442,270,736 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 12,774 | $ | 10,697 | $ | 34,506 | $ | 60,093 | ||||||||
Net realized gain (loss) on investments, foreign currency, swap contracts and debt extinguishment | 1,625 | (485,788 | ) | (260,887 | ) | (935,323 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on investments | 48,994 | 468,628 | 408,973 | 7,220 | ||||||||||||
Net change in unrealized appreciation (depreciation) on swap contracts | — | — | — | (6,551 | ) | |||||||||||
Net change in unrealized gain (loss) on foreign currency | (21 | ) | 6 | (13 | ) | (9 | ) | |||||||||
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Net increase (decrease) in net assets resulting from operations | 63,372 | (6,457 | ) | 182,579 | (874,570 | ) | ||||||||||
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Shareholder distributions(1) | ||||||||||||||||
Distributions to shareholders | (13,339 | ) | (13,163 | ) | (39,882 | ) | (62,468 | ) | ||||||||
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Net decrease in net assets resulting from shareholder distributions | (13,339 | ) | (13,163 | ) | (39,882 | ) | (62,468 | ) | ||||||||
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Capital share transactions(2) | ||||||||||||||||
Reinvestment of shareholder distributions | 5,262 | 5,442 | 15,880 | 20,871 | ||||||||||||
Repurchases of common shares | — | — | — | (26,823 | ) | |||||||||||
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Net increase (decrease) in net assets resulting from capital share transactions | 5,262 | 5,442 | 15,880 | (5,952 | ) | |||||||||||
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Total increase (decrease) in net assets | 55,295 | (14,178 | ) | 158,577 | (942,990 | ) | ||||||||||
Net assets at beginning of period | 1,531,859 | 1,450,793 | 1,428,577 | 2,379,605 | ||||||||||||
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Net assets at end of period | $ | 1,587,154 | $ | 1,436,615 | $ | 1,587,154 | $ | 1,436,615 | ||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||
Net investment income | $ | 20,836 | $ | 13,073 | $ | 29,026 | $ | 21,732 | ||||||||||||||||||
Net realized gain (loss) on investments, swap contracts and debt extinguishment | 58,929 | (262,072) | 28,723 | (262,512) | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (64,079) | 228,416 | 151,202 | 359,979 | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on swap contracts | (106) | — | (3,588) | — | ||||||||||||||||||||||
Net change in unrealized gain (loss) on foreign currency | — | 4 | — | 8 | ||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 15,580 | (20,579) | 205,363 | 119,207 | ||||||||||||||||||||||
Shareholder distributions(1) | ||||||||||||||||||||||||||
Distributions to shareholders | (13,465) | (13,294) | (26,891) | (26,543) | ||||||||||||||||||||||
Net decrease in net assets resulting from shareholder distributions | (13,465) | (13,294) | (26,891) | (26,543) | ||||||||||||||||||||||
Capital share transactions(2) | ||||||||||||||||||||||||||
Reinvestment of shareholder distributions | 5,225 | 5,277 | 10,460 | 10,618 | ||||||||||||||||||||||
Net increase in net assets resulting from capital share transactions | 5,225 | 5,277 | 10,460 | 10,618 | ||||||||||||||||||||||
Total increase (decrease) in net assets | 7,340 | (28,596) | 188,932 | 103,282 | ||||||||||||||||||||||
Net assets at beginning of period | 1,783,915 | 1,560,455 | 1,602,323 | 1,428,577 | ||||||||||||||||||||||
Net assets at end of period | $ | 1,791,255 | $ | 1,531,859 | $ | 1,791,255 | $ | 1,531,859 |
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net increase (decrease) in net assets resulting from operations | $ | 182,579 | $ | (874,570 | ) | |||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||||||
Purchases of investments | (668,351 | ) | (299,218 | ) | ||||
Paid-in-kind interest | (26,455 | ) | (22,536 | ) | ||||
Proceeds from sales and repayments of investments | 725,937 | 677,114 | ||||||
Net realized (gain) loss on investments | 260,881 | 958,164 | ||||||
Net change in unrealized (appreciation) depreciation on investments | (408,973 | ) | (7,220 | ) | ||||
Net change in unrealized (appreciation) depreciation on swap contracts | — | 6,551 | ||||||
Accretion of discount | (7,269 | ) | (24,391 | ) | ||||
Amortization of deferred financing costs and discount | 6,238 | 5,793 | ||||||
(Increase) decrease in receivable for investments sold and repaid | (5,485 | ) | 115 | |||||
(Increase) decrease in interest receivable | 8,803 | 14,443 | ||||||
(Increase) decrease in swap income receivable | — | 395 | ||||||
(Increase) decrease in prepaid expenses and other assets | 34 | 79 | ||||||
Increase (decrease) in payable for investments purchased | 80,184 | (28,518 | ) | |||||
Increase (decrease) in management fees payable | (1,105 | ) | 16,009 | |||||
Increase (decrease) in administrative services expense payable | 894 | 830 | ||||||
Increase (decrease) in interest payable(1) | (9,467 | ) | (11,522 | ) | ||||
Increase (decrease) in trustees’ fees payable | (3 | ) | (2 | ) | ||||
Increase (decrease) in other accrued expenses and liabilities | (426 | ) | (3,356 | ) | ||||
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Net cash provided by (used in) operating activities | 138,016 | 408,160 | ||||||
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Cash flows from financing activities | ||||||||
Repurchases of common shares | — | (26,823 | ) | |||||
Shareholder distributions paid | (23,851 | ) | (38,673 | ) | ||||
Borrowings under credit facilities(1) | — | 160,000 | ||||||
Repayments of credit facilities(1) | (185,000 | ) | (480,000 | ) | ||||
Repayments under senior secured notes(1) | — | (11,000 | ) | |||||
Deferred financing costs paid | (128 | ) | (2,513 | ) | ||||
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Net cash provided by (used in) financing activities | (208,979 | ) | (399,009 | ) | ||||
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Total increase (decrease) in cash | (70,963 | ) | 9,151 | |||||
Cash at beginning of period | 142,536 | 150,419 | ||||||
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Cash at end of period | $ | 71,573 | $ | 159,570 | ||||
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Supplemental disclosure | ||||||||
Reinvestment of shareholder distributions | $ | 15,880 | $ | 20,871 | ||||
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Non-cash purchases of investments | $ | (81,215 | ) | $ | (297,623 | ) | ||
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Non-cash sales of investments | $ | 81,215 | $ | 297,623 | ||||
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Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash flows from operating activities | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 205,363 | $ | 119,207 | ||||||||||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||||||||||||
Purchases of investments | (342,911) | (329,073) | ||||||||||||
Paid-in-kind interest | (12,469) | (17,841) | ||||||||||||
Proceeds from sales and repayments of investments | 505,815 | 430,599 | ||||||||||||
Net realized (gain) loss on investments | (31,460) | 262,506 | ||||||||||||
Net change in unrealized (appreciation) depreciation on investments | (151,202) | (359,979) | ||||||||||||
Net change in unrealized (appreciation) depreciation on swap contracts | 3,588 | — | ||||||||||||
Accretion of discount | (3,886) | (5,984) | ||||||||||||
Amortization of deferred financing costs and discount | 3,718 | 4,653 | ||||||||||||
(Increase) decrease in receivable for investments sold and repaid | (2,316) | 7,691 | ||||||||||||
(Increase) decrease in interest receivable | 6,810 | 6,459 | ||||||||||||
(Increase) decrease in dividends receivable | (3,691) | — | ||||||||||||
(Increase) decrease in prepaid expenses and other assets | 98 | 34 | ||||||||||||
Increase (decrease) in payable for investments purchased | (49,053) | 55,387 | ||||||||||||
Increase (decrease) in swap income payable | 453 | — | ||||||||||||
Increase (decrease) in management fees payable | (890) | (199) | ||||||||||||
Increase (decrease) in administrative services expense payable | 353 | 658 | ||||||||||||
Increase (decrease) in interest payable(1) | (938) | (319) | ||||||||||||
Increase (decrease) in trustees' fees payable | (10) | (1) | ||||||||||||
Increase (decrease) in other accrued expenses and liabilities | (515) | 44 | ||||||||||||
Net cash provided by (used in) operating activities | 126,857 | 173,842 | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Shareholder distributions paid | (16,354) | (15,819) | ||||||||||||
Borrowings under credit facilities(1) | 29,009 | — | ||||||||||||
Repayments of credit facilities(1) | (10,000) | (185,000) | ||||||||||||
Repayments under senior secured notes(1) | (31,925) | — | ||||||||||||
Deferred financing costs paid | (132) | (128) | ||||||||||||
Net cash provided by (used in) financing activities | (29,402) | (200,947) | ||||||||||||
Total increase (decrease) in cash | 97,455 | (27,105) | ||||||||||||
Cash at beginning of period | 33,879 | 142,536 | ||||||||||||
Cash at end of period | $ | 131,334 | $ | 115,431 | ||||||||||
Supplemental disclosure | ||||||||||||||
Reinvestment of shareholder distributions | $ | 10,460 | $ | 10,618 | ||||||||||
Non-cash purchases of investments | $ | (1,587) | $ | (81,215) | ||||||||||
Non-cash sales of investments | $ | 1,587 | $ | 81,215 | ||||||||||
Excise and state taxes paid | $ | 1,007 | $ | 71 |
2022
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||
Senior Secured Loans—First Lien—45.6% | ||||||||||||||||||||||
AIRRO (Mauritius) Holdings II | (k)(p)(s) | Power | L+350, 3.5% PIK (3.5% Max PIK) | 1.5% | 7/24/25 | $ | 21,876 | $ | 19,224 | $ | 18,542 | |||||||||||
AIRRO (Mauritius) Holdings II | (e)(k)(p)(s) | Power | L+350, 3.5% PIK (3.5% Max PIK) | 1.5% | 7/24/25 | 14,601 | 14,601 | 12,375 | ||||||||||||||
Allied Downhole Technologies, LLC | (f)(s)(x) | Service & Equipment | 8.0% PIK (8.0% Max PIK) | 3/31/22 | 5,137 | 5,137 | 5,138 | |||||||||||||||
Allied Wireline Services, LLC | (f)(s)(x) | Service & Equipment | 10.0% PIK (10.0% Max PIK) | 6/15/25 | 58,080 | 58,080 | 51,293 | |||||||||||||||
ARB Midstream Operating Company, LLC | (s) | Midstream | L+825 | 1.0% | 5/6/22 | 898 | 897 | 897 | ||||||||||||||
Bioenergy Infrastructure Holdings Limited | (k)(s) | Power | L+725 | 1.0% | 12/22/22 | 413 | 413 | 403 | ||||||||||||||
Birch Permian LLC | (s) | Upstream | L+800 | 1.5% | 4/12/23 | 49,865 | 49,671 | 50,208 | ||||||||||||||
Brazos Delaware II LLC | Midstream | L+400 | 5/21/25 | 39,791 | 38,120 | 39,269 | ||||||||||||||||
Cimarron Energy Inc. | (s) | Service & Equipment | L+900 | 1.0% | 12/31/22 | 7,500 | 7,500 | 3,713 | ||||||||||||||
Cox Oil Offshore, LLC, Volumetric Production Payments | (i)(o)(s)(v) | Upstream | 0.0% | 12/31/23 | 100,000 | 26,702 | 31,325 | |||||||||||||||
CPV Maryland, LLC | Power | L+400 | 1.0% | 5/10/28 | 15,820 | 15,640 | 15,425 | |||||||||||||||
CPV Shore Holdings LLC | (h) | Power | L+375 | 12/29/25 | 6,274 | 5,964 | 6,081 | |||||||||||||||
EIF Van Hook Holdings, LLC | Midstream | L+525 | 9/5/24 | 31,234 | 30,745 | 29,087 | ||||||||||||||||
FR BR Holdings LLC | (f)(s) | Midstream | L+650 | 12/14/23 | 82,873 | 80,287 | 83,701 | |||||||||||||||
FR XIII PAA Holdings HoldCo, LLC | (s) | Midstream | L+725 | 0.5% | 10/15/26 | 29,326 | 28,812 | 29,912 | ||||||||||||||
GasLog Ltd. | (e)(k)(o)(s) | Midstream | L+775 | 3/21/29 | 15,113 | 15,113 | 15,000 | |||||||||||||||
Generation Bridge LLC | (h) | Power | L+500 | 0.8% | 8/6/28 | 7,837 | 7,680 | 7,876 | ||||||||||||||
Generation Bridge LLC | (h) | Power | L+500 | 0.8% | 8/6/28 | 163 | 160 | 164 | ||||||||||||||
GIP II Blue Holding LP | Midstream | L+450 | 1.0% | 9/29/28 | 7,500 | 7,387 | 7,509 | |||||||||||||||
Limetree Bay Energy, LLC | (f)(o)(s)(w) | Midstream | 0.0% | 10/31/21 | 26,444 | 13,910 | 3,167 | |||||||||||||||
Lower Cadence Holdings LLC | Midstream | L+400 | 5/22/26 | 50,803 | 50,746 | 50,831 | ||||||||||||||||
MECO IV Holdco, LLC | (s)(x) | Upstream | 8.0% | 9/14/25 | 22,294 | 22,294 | 22,294 | |||||||||||||||
MRP CalPeak Holdings, LLC | (s) | Power | L+500 | 1.5% | 1/27/25 | 14,085 | 14,085 | 14,237 | ||||||||||||||
MRP West Power Holdings II, LLC | (s) | Power | L+500 | 1.5% | 1/27/25 | 13,924 | 13,924 | 14,044 | ||||||||||||||
Navitas Midstream Midland Basin LLC | (f) | Midstream | L+400 | 1.0% | 12/13/24 | 68,519 | 66,741 | 68,562 | ||||||||||||||
NNE Holding LLC | (s) | Upstream | L+475, 4.5% PIK (4.5% Max PIK) | 12/31/23 | 41,856 | 41,823 | 40,820 | |||||||||||||||
OE2 North, LLC | (s) | Midstream | L+525 | 1.0% | 5/21/26 | 11,333 | 11,228 | 11,404 | ||||||||||||||
OE2 North, LLC | (e)(s) | Midstream | L+525 | 1.0% | 5/21/26 | 18,667 | 18,667 | 18,495 | ||||||||||||||
Oryx Midstream Services Permian Basin LLC | (f)(h) | Midstream | L+325 | 0.5% | 10/5/28 | 50,000 | 49,750 | 50,039 | ||||||||||||||
Permian Production Holdings, LLC | (f)(s)(w) | Upstream | 7.0%, 2.0% PIK (2.0% Max PIK) | 11/23/25 | 7,849 | 6,598 | 7,849 | |||||||||||||||
Plainfield Renewable Energy Holdings LLC | (f)(s) | Power | 6.7%, 8.8% PIK (9.5% Max PIK) | 8/22/25 | 12,182 | 12,182 | 12,328 | |||||||||||||||
Plainfield Renewable Energy Holdings LLC | (f)(s) | Power | 10.0% PIK (10.0% Max PIK) | 8/22/25 | 3,304 | 3,304 | — | |||||||||||||||
Plainfield Renewable Energy Holdings LLC, Letter of Credit | (e)(o)(s) | Power | 10.0% | 8/22/25 | 2,709 | 2,709 | 54 |
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor(b) | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien—42.6% | ||||||||||||||||||||||||||||||||||||||||||||||||||
AIRRO (Mauritius) Holdings II | (k)(p)(s) | Power | L+350, 3.5% PIK (3.5% Max PIK) | 1.5% | 7/24/25 | $ | 22,390 | $ | 19,799 | $ | 19,627 | |||||||||||||||||||||||||||||||||||||||
AIRRO (Mauritius) Holdings II | (e)(k)(p)(s) | Power | L+350, 3.5% PIK (3.5% Max PIK) | 1.5% | 7/24/25 | 14,602 | 14,602 | 12,800 | ||||||||||||||||||||||||||||||||||||||||||
Allied Downhole Technologies, LLC | (f)(s)(z) | Service & Equipment | 8.0% PIK (8.0% Max PIK) | 9/30/23 | 8,101 | 8,101 | 8,101 | |||||||||||||||||||||||||||||||||||||||||||
Allied Downhole Technologies, LLC | (e)(s)(z) | Service & Equipment | 8.0% PIK (8.0% Max PIK) | 9/30/23 | 2,500 | 2,500 | 2,500 | |||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC | (f)(s)(z) | Service & Equipment | 10.0% PIK (10.0% Max PIK) | 6/15/25 | 63,888 | 63,888 | 53,669 | |||||||||||||||||||||||||||||||||||||||||||
Brazos Delaware II LLC | Midstream | L+400 | 5/21/25 | 39,472 | 38,098 | 38,120 | ||||||||||||||||||||||||||||||||||||||||||||
Cimarron Energy Inc. | (f)(m)(o)(s) | Service & Equipment | L+900 | 1.0% | 12/31/24 | 7,500 | 6,939 | 5,522 | ||||||||||||||||||||||||||||||||||||||||||
Compass Power Generation LLC | Power | L+425 | 1.0% | 4/7/29 | 34,175 | 33,168 | 32,808 | |||||||||||||||||||||||||||||||||||||||||||
Cox Oil Offshore, LLC, Volumetric Production Payments | (i)(s)(v) | Upstream | 10.5% | 12/31/23 | 100,000 | 17,847 | 33,459 | |||||||||||||||||||||||||||||||||||||||||||
CPV Maryland, LLC | Power | L+400 | 1.0% | 5/11/28 | 15,215 | 15,057 | 14,727 | |||||||||||||||||||||||||||||||||||||||||||
CPV Shore Holdings LLC | Power | L+375 | 12/29/25 | 23,601 | 22,642 | 21,837 | ||||||||||||||||||||||||||||||||||||||||||||
EIF Van Hook Holdings, LLC | Midstream | L+525 | 9/5/24 | 29,249 | 28,888 | 28,176 | ||||||||||||||||||||||||||||||||||||||||||||
FR BR Holdings LLC | (f)(s) | Midstream | L+650 | 12/14/23 | 82,126 | 80,355 | 82,061 | |||||||||||||||||||||||||||||||||||||||||||
FR XIII PAA Holdings HoldCo, LLC | (s) | Midstream | L+725 | 0.5% | 10/15/26 | 17,497 | 17,226 | 17,442 | ||||||||||||||||||||||||||||||||||||||||||
GasLog Ltd. | (k)(s) | Midstream | L+775 | 3/31/29 | 14,648 | 14,550 | 14,371 | |||||||||||||||||||||||||||||||||||||||||||
Generation Bridge LLC | Power | L+500 | 0.8% | 12/1/28 | 7,817 | 7,652 | 7,642 | |||||||||||||||||||||||||||||||||||||||||||
Generation Bridge LLC | Power | L+500 | 0.8% | 12/1/28 | 144 | 160 | 160 | |||||||||||||||||||||||||||||||||||||||||||
GIP II Blue Holding LP | Midstream | L+450 | 1.0% | 9/29/28 | 6,033 | 5,951 | 5,870 | |||||||||||||||||||||||||||||||||||||||||||
Goodnight Water Solutions, LLC | (s) | Midstream | L+775 | 0.5% | 6/3/27 | 15,000 | 14,777 | 14,775 | ||||||||||||||||||||||||||||||||||||||||||
Hamilton Intermediate Holdings, LLC | (s) | Power | 16.5% (16.5% Max PIK) | 6/17/25 | 28,000 | 28,791 | 28,800 | |||||||||||||||||||||||||||||||||||||||||||
Lucid Energy Group II Borrower LLC | Midstream | L+425 | 0.8% | 11/22/28 | 24,875 | 24,643 | 24,622 | |||||||||||||||||||||||||||||||||||||||||||
Medallion Midland Acquisition LP | Midstream | L+375 | 0.8% | 10/18/28 | 7,960 | 7,924 | 7,657 | |||||||||||||||||||||||||||||||||||||||||||
NNE Holding LLC | (s) | Upstream | L+475, 4.5% PIK (4.5% Max PIK) | 12/31/23 | 42,333 | 42,309 | 42,098 | |||||||||||||||||||||||||||||||||||||||||||
OE2 North, LLC | (s) | Midstream | L+525 | 1.0% | 5/21/26 | 18,025 | 17,731 | 18,148 | ||||||||||||||||||||||||||||||||||||||||||
OE2 North, LLC | (e)(s) | Midstream | L+525 | 1.0% | 5/21/26 | 12,179 | 12,179 | 12,262 | ||||||||||||||||||||||||||||||||||||||||||
Oryx Midstream Services Permian Basin LLC | (f) | Midstream | L+325 | 0.5% | 10/5/28 | 32,835 | 32,686 | 31,330 | ||||||||||||||||||||||||||||||||||||||||||
Parkway Generation LLC | Power | L+475 | 0.8% | 2/18/29 | 6,140 | 6,081 | 5,915 | |||||||||||||||||||||||||||||||||||||||||||
Parkway Generation LLC | Power | L+475 | 0.8% | 2/18/29 | 43,750 | 43,330 | 42,274 | |||||||||||||||||||||||||||||||||||||||||||
Permian Production Holdings, LLC | (f)(h)(s)(y) | Upstream | 7.0%, 2.0% PIK (2.0% Max PIK) | 11/23/25 | 4,718 | 4,156 | 4,719 | |||||||||||||||||||||||||||||||||||||||||||
Pinnacle Midland Gas Holdco LLC | (s) | Midstream | L+675 | 1.0% | 12/9/26 | 7,001 | 6,928 | 6,971 | ||||||||||||||||||||||||||||||||||||||||||
Pinnacle Midland Gas Holdco LLC | (e)(s) | Midstream | L+675 | 1.0% | 12/9/26 | 4,847 | 4,847 | 4,826 | ||||||||||||||||||||||||||||||||||||||||||
Plainfield Renewable Energy Holdings LLC | (f)(s) | Power | 6.4%, 9.1% PIK (9.5% Max PIK) | 8/22/25 | 12,400 | 12,400 | 11,853 |
(continued)
2022
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||
Traverse Midstream Partners LLC | Midstream | L+550 | 9/27/24 | $ | 28,744 | $ | 28,853 | $ | 28,811 | |||||||||||||||||
Warren Resources, Inc. | (s)(x) | Upstream | L+900, 1.0% PIK (1.0% Max PIK) | 1.0% | 5/22/24 | 23,627 | 23,627 | 23,627 | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total Senior Secured Loans—First Lien | 792,574 | 774,480 | ||||||||||||||||||||||||
Unfunded Loan Commitments | (51,090 | ) | (51,090 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Net Senior Secured Loans—First Lien | 741,484 | 723,390 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Senior Secured Loans— | ||||||||||||||||||||||||||
Aethon III BR LLC | (f)(s) | Upstream | L+750 | 1.5% | 1/10/25 | 20,000 | 19,778 | 20,585 | ||||||||||||||||||
Chisholm Energy Holdings, LLC | (f)(s) | Upstream | L+625 | 1.5% | 5/15/26 | 17,143 | 17,089 | 17,197 | ||||||||||||||||||
Olympus Energy, LLC | (f)(s) | Upstream | L+750 | 1.0% | 7/23/26 | 15,000 | 15,000 | 15,000 | ||||||||||||||||||
Olympus Energy, LLC | (e)(s) | Upstream | L+750 | 1.0% | 7/23/26 | 15,000 | 15,000 | 15,000 | ||||||||||||||||||
Peak Exploration & Production, LLC | (f)(s) | Upstream | L+675 | 1.5% | 11/16/23 | 13,545 | 13,508 | 13,405 | ||||||||||||||||||
Peak Exploration & Production, LLC | (e)(s) | Upstream | L+675 | 1.5% | 11/16/23 | 1,505 | 1,505 | 1,489 | ||||||||||||||||||
Penn Virginia Holdings Corp. | (f)(k)(s) | Upstream | P+725 | 9/30/24 | 15,086 | 14,784 | 15,105 | |||||||||||||||||||
SilverBow Resources, Inc. | (f)(k)(s) | Upstream | L+750 | 1.0% | 12/15/24 | 19,000 | 18,897 | 18,809 | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total Senior Secured Loans—Second Lien | 115,561 | 116,590 | ||||||||||||||||||||||||
Unfunded Loan Commitments | (16,505 | ) | (16,505 | ) | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Net Senior Secured Loans—Second Lien | 99,056 | 100,085 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Senior Secured Bonds—4.9% | ||||||||||||||||||||||||||
Great Western Petroleum, LLC | (f)(w) | Upstream | 12.0% | 9/1/25 | 55,096 | 53,860 | 56,062 | |||||||||||||||||||
SM Energy Co. | (k) | Upstream | 10.0% | 1/15/25 | 10,000 | 11,194 | 11,170 | |||||||||||||||||||
ST EIP Holdings Inc. | (s) | Midstream | 6.1% | 1/10/30 | 10,526 | 10,005 | 10,000 | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total Senior Secured Bonds | 75,059 | 77,232 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Unsecured Debt—25.5% | ||||||||||||||||||||||||||
Aethon United BR LP | Upstream | 8.3% | 2/15/26 | 40,500 | 40,500 | 43,791 | ||||||||||||||||||||
Archrock Partners, LP | (f)(h)(k) | Midstream | 6.3% | 4/1/28 | 19,035 | 19,883 | 19,713 | |||||||||||||||||||
Cheniere Energy Partners LP Holdings, LLC | (f)(k) | Midstream | 3.3% | 1/31/32 | 3,750 | 3,750 | 3,767 | |||||||||||||||||||
Cheniere Energy Partners LP Holdings, LLC | (f)(k) | Midstream | 4.5% | 10/1/29 | 13,500 | 14,561 | 14,369 | |||||||||||||||||||
Colgate Energy Partners III LLC | (f) | Upstream | 5.9% | 7/1/29 | 8,000 | 8,112 | 8,070 | |||||||||||||||||||
Colgate Energy Partners III LLC | Upstream | 7.8% | 2/15/26 | 23,365 | 24,811 | 24,641 | ||||||||||||||||||||
Encino Acquisition Partners Holdings LLC | (f) | Upstream | 8.5% | 5/1/28 | 6,080 | 6,080 | 6,225 | |||||||||||||||||||
Endeavor Energy Resources, LP | (h) | Upstream | 5.8% | 1/30/28 | 33,299 | 35,260 | 35,089 | |||||||||||||||||||
Endeavor Energy Resources, LP | Upstream | 5.5% | 1/30/26 | 11,000 | 11,411 | 11,473 | ||||||||||||||||||||
EnLink Midstream, LLC | (f)(k) | Midstream | 5.6% | 1/15/28 | 5,881 | 6,350 | 6,269 | |||||||||||||||||||
Global Jet Capital Holdings, LP | (f)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 1/30/25 | 1,486 | 1,272 | 1,193 | |||||||||||||||||||
Global Jet Capital Holdings, LP | (f)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 9/29/25 | 1,838 | 1,572 | 1,475 |
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor(b) | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Plainfield Renewable Energy Holdings LLC | (f)(s) | Power | 10.0% PIK (10.0% Max PIK) | 8/22/25 | $ | 3,469 | $ | 3,469 | $ | — | ||||||||||||||||||||||||||||||||||||||||
Plainfield Renewable Energy Holdings LLC, Letter of Credit | (e)(s) | Power | 10.0% | 8/22/25 | 2,709 | 2,709 | — | |||||||||||||||||||||||||||||||||||||||||||
Potomac Energy Center, LLC | (s) | Power | L+600 | 0.5% | 11/10/26 | 58,754 | 57,702 | 58,329 | ||||||||||||||||||||||||||||||||||||||||||
Traverse Midstream Partners LLC | Midstream | S+425 | 1.0% | 9/27/24 | 30,791 | 30,859 | 29,457 | |||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc. | (s)(z) | Upstream | L+900, 1.0% PIK (1.0% Max PIK) | 1.0% | 5/22/24 | 23,464 | 23,464 | 23,464 | ||||||||||||||||||||||||||||||||||||||||||
Wattbridge Inc. | (s) | Power | L+785 | 1.8% | 6/30/27 | 33,198 | 33,198 | 33,198 | ||||||||||||||||||||||||||||||||||||||||||
Wattbridge Inc. | (e)(s) | Power | L+785 | 1.8% | 6/30/27 | 9,302 | 9,302 | 9,302 | ||||||||||||||||||||||||||||||||||||||||||
Total Senior Secured Loans—First Lien | 816,908 | 808,892 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unfunded Loan Commitments | (46,139) | (46,139) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Senior Secured Loans—First Lien | 770,769 | 762,753 | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—Second Lien—9.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aethon III BR LLC | (f)(s) | Upstream | L+750 | 1.5% | 1/10/25 | 20,000 | 19,819 | 20,200 | ||||||||||||||||||||||||||||||||||||||||||
Citizen Energy Operating, LLC | (s) | Upstream | L+765 | 1.0% | 6/29/27 | 40,000 | 39,400 | 39,400 | ||||||||||||||||||||||||||||||||||||||||||
ERA II Minerals, LLC | (f)(s) | Upstream | S+625 | 0.8% | 3/7/27 | 39,000 | 38,539 | 38,864 | ||||||||||||||||||||||||||||||||||||||||||
Olympus Energy, LLC | (f)(s) | Upstream | L+750 | 1.0% | 7/23/26 | 30,000 | 30,000 | 30,413 | ||||||||||||||||||||||||||||||||||||||||||
Olympus Energy, LLC | (e)(s) | Upstream | L+750 | 1.0% | 7/23/26 | 12,955 | 12,955 | 12,955 | ||||||||||||||||||||||||||||||||||||||||||
Peak Exploration & Production, LLC | (f)(s) | Upstream | L+675 | 1.5% | 11/16/23 | 13,545 | 13,520 | 13,394 | ||||||||||||||||||||||||||||||||||||||||||
Peak Exploration & Production, LLC | (e)(s) | Upstream | L+675 | 1.5% | 11/16/23 | 1,505 | 1,505 | 1,488 | ||||||||||||||||||||||||||||||||||||||||||
SilverBow Resources, Inc. | (f)(k)(s) | Upstream | L+750 | 1.0% | 12/15/26 | 14,250 | 14,188 | 14,393 | ||||||||||||||||||||||||||||||||||||||||||
Tenrgys, LLC | (s) | Upstream | L+750 | 1.0% | 3/17/27 | 20,537 | 20,537 | 20,537 | ||||||||||||||||||||||||||||||||||||||||||
Total Senior Secured Loans—Second Lien | 190,463 | 191,644 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unfunded Loan Commitments | (14,460) | (14,460) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Senior Secured Loans—Second Lien | 176,003 | 177,184 | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Bonds—0.6% | ||||||||||||||||||||||||||||||||||||||||||||||||||
ST EIP Holdings Inc. | (s) | Midstream | 6.1% | 1/10/30 | 10,526 | 10,040 | 10,356 | |||||||||||||||||||||||||||||||||||||||||||
Total Senior Secured Bonds | 10,040 | 10,356 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Debt—20.1% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aethon United BR LP | (f) | Upstream | 8.3% | 2/15/26 | 40,500 | 40,500 | 39,422 | |||||||||||||||||||||||||||||||||||||||||||
Archrock Partners, L.P. | (f)(k) | Midstream | 6.3% | 4/1/28 | 22,239 | 23,079 | 19,723 | |||||||||||||||||||||||||||||||||||||||||||
Cheniere Energy Partners LP Holdings, LLC | (f)(k) | Midstream | 4.5% | 10/1/29 | 13,825 | 14,627 | 12,369 | |||||||||||||||||||||||||||||||||||||||||||
Colgate Energy Partners III LLC | (f) | Upstream | 5.9% | 7/1/29 | 11,000 | 11,118 | 9,654 |
(continued)
2022
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||
Global Jet Capital Holdings, LP | (f)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 9/3/25 | $ | 1,952 | $ | 1,670 | $ | 1,567 | ||||||||||||||||
Global Jet Capital Holdings, LP | (f)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 4/30/25 | 9,446 | 8,083 | 7,582 | |||||||||||||||||||
Global Jet Capital Holdings, LP | (f)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 12/2/26 | 1,616 | 1,383 | 1,297 | |||||||||||||||||||
Hammerhead Resources Inc. | (f)(k)(s) | Upstream | 12.0% PIK (12.0% Max PIK) | 7/15/24 | 63,889 | 63,378 | 63,889 | |||||||||||||||||||
Moss Creek Resources, LLC | (f) | Upstream | 7.5% | 1/15/26 | 11,693 | 9,947 | 10,855 | |||||||||||||||||||
NRG Energy, Inc. | (k) | Power | 3.9% | 2/15/32 | 8,625 | 8,676 | 8,539 | |||||||||||||||||||
Penn Virginia Escrow LLC | (k) | Upstream | 9.3% | 8/15/26 | 29,772 | 29,596 | 30,226 | |||||||||||||||||||
Range Resources Corp. | (k) | Upstream | 8.3% | 1/15/29 | 5,000 | 5,661 | 5,632 | |||||||||||||||||||
Range Resources Corp. | (k) | Upstream | 9.3% | 2/1/26 | 3,000 | 3,269 | 3,274 | |||||||||||||||||||
SM Energy Co. | (h)(k) | Upstream | 5.6% | 6/1/25 | 8,000 | 8,044 | 8,059 | |||||||||||||||||||
Southwestern Energy Co. | Upstream | 5.4% | 2/1/29 | 18,928 | 19,755 | 20,273 | ||||||||||||||||||||
Suburban Propane Partners LP | (f)(k) | Midstream | 5.0% | 6/1/31 | 6,750 | 7,035 | 7,012 | |||||||||||||||||||
Suburban Propane Partners LP | (f)(k) | Midstream | 5.9% | 3/1/27 | 2,501 | 2,623 | 2,616 | |||||||||||||||||||
Tallgrass Energy Partners, LP | (f)(h) | Midstream | 7.5% | 10/1/25 | 13,629 | 14,761 | 14,770 | |||||||||||||||||||
Tallgrass Energy Partners, LP | (f)(h) | Midstream | 6.0% | 3/1/27 | 1,500 | 1,571 | 1,573 | |||||||||||||||||||
Tenrgys, LLC | (f)(m)(n)(o)(s) | Upstream | L+900 | 2.5% | 12/23/18 | 75,000 | 75,300 | 37,400 | ||||||||||||||||||
Vistra Operations Company LLC | (f)(h)(k) | Midstream | 5.6% | 2/15/27 | 3,547 | 3,689 | 3,676 | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total Unsecured Debt | 438,003 | 404,315 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||
Preferred Equity—30.6%(l) | ||||||||||||||||||||||||||
Abaco Energy Technologies LLC, Preferred Equity | (f)(o)(s) | Service & Equipment | 28,942,003 | $ | 1,447 | $ | 3,980 | |||||||||||||||||||
Altus Midstream LP, Series A Preferred Units | (j)(s) | Midstream | 11.0% | 6/28/26 | 52,856 | 58,066 | 59,826 | |||||||||||||||||||
Global Jet Capital Holdings, LP, Preferred Equity | (f)(o)(s) | Industrials | 27,856 | 2,786 | — | |||||||||||||||||||||
NGL Energy Partners, LP, Preferred Equity | (f)(k)(m)(o)(s) | Midstream | 14.2% | 7/2/27 | 156,250 | 157,633 | 125,000 | |||||||||||||||||||
NuStar, Preferred Equity | (f)(k)(s) | Midstream | 12.8% | 6/29/28 | 3,910,165 | 102,642 | 124,050 | |||||||||||||||||||
Segreto Power Holdings, LLC, Preferred Equity | (g)(s) | Power | 13.1% | 6/30/25 | 70,297 | 99,761 | 82,903 | |||||||||||||||||||
USA Compression Partners, LP, Preferred Equity | (k)(s) | Midstream | 9.8% | 4/3/28 | 79,336 | 77,721 | 90,379 | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total Preferred Equity | 500,056 | 486,138 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Number of Shares | Cost | Fair Value(d) | ||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC—3.4% | ||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | (k)(s)(x) | Power | 60,603 | $ | 54,514 | $ | 54,430 | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total Sustainable Infrastructure Investments, LLC | 54,514 | 54,430 | ||||||||||||||||||||||||
|
|
|
|
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor(b) | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Colgate Energy Partners III LLC | Upstream | 7.8% | 2/15/26 | $ | 26,365 | $ | 27,676 | $ | 25,111 | |||||||||||||||||||||||||||||||||||||||||
Earthstone Energy Holdings, LLC | (k) | Upstream | 8.0% | 4/15/27 | 11,400 | 11,400 | 10,803 | |||||||||||||||||||||||||||||||||||||||||||
Endeavor Energy Resources, L.P. | (f) | Upstream | 5.8% | 1/30/28 | 31,299 | 32,905 | 29,899 | |||||||||||||||||||||||||||||||||||||||||||
EnLink Midstream, LLC | (k) | Midstream | 5.4% | 6/1/29 | 1,000 | 1,043 | 877 | |||||||||||||||||||||||||||||||||||||||||||
Hammerhead Resources Inc. | (f)(k)(s) | Upstream | 12.0% PIK (12.0% Max PIK) | 7/15/24 | 67,889 | 67,492 | 67,889 | |||||||||||||||||||||||||||||||||||||||||||
Moss Creek Resources, LLC | (f) | Upstream | 7.5% | 1/15/26 | 11,693 | 10,186 | 10,479 | |||||||||||||||||||||||||||||||||||||||||||
NRG Energy, Inc. | (k) | Power | 3.9% | 2/15/32 | 19,125 | 18,648 | 15,233 | |||||||||||||||||||||||||||||||||||||||||||
Range Resources Corp. | (k) | Upstream | 8.3% | 1/15/29 | 8,750 | 9,714 | 8,935 | |||||||||||||||||||||||||||||||||||||||||||
Ranger Oil Corp. | (k) | Upstream | 9.3% | 8/15/26 | 29,772 | 29,618 | 28,611 | |||||||||||||||||||||||||||||||||||||||||||
SM Energy Co. | (k) | Upstream | 5.6% | 6/1/25 | 8,000 | 8,036 | 7,570 | |||||||||||||||||||||||||||||||||||||||||||
Southwestern Energy Co. | Upstream | 5.4% | 2/1/29 | 18,928 | 19,683 | 17,593 | ||||||||||||||||||||||||||||||||||||||||||||
Suburban Propane Partners LP | (f)(k) | Midstream | 5.0% | 6/1/31 | 17,690 | 18,330 | 15,071 | |||||||||||||||||||||||||||||||||||||||||||
Tallgrass Energy Partners, LP | (f) | Midstream | 6.0% | 3/1/27 | 28,261 | 28,526 | 25,257 | |||||||||||||||||||||||||||||||||||||||||||
Tallgrass Energy Partners, LP | (f) | Midstream | 7.5% | 10/1/25 | 15,424 | 16,458 | 14,954 | |||||||||||||||||||||||||||||||||||||||||||
Total Unsecured Debt | 389,039 | 359,450 |
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor(b) | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Preferred Equity—26.5%(l) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Abaco Energy Technologies LLC, Preferred Equity | (f)(o)(s) | Service & Equipment | 28,942,003 | $ | 1,447 | $ | 5,687 | |||||||||||||||||||||||||||||||||||||||||||
Global Jet Capital Holdings, LP, Preferred Equity | (f)(m)(o)(s) | Industrials | 9.0% PIK (9.0% Max PIK) | 10/1/28 | 173,855 | 12,493 | 9,453 | |||||||||||||||||||||||||||||||||||||||||||
Global Jet Capital Holdings, LP, Preferred Equity | (f)(o)(s) | Industrials | 27,856 | 2,786 | — | |||||||||||||||||||||||||||||||||||||||||||||
Kinetik Holdings, LP, Series A Preferred Units | (j)(s) | Midstream | 11.0% | 6/28/26 | 33,828 | 38,296 | 39,335 | |||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Preferred Equity | (f)(k)(m)(o)(s) | Midstream | 14.2% | 7/2/27 | 156,250 | 157,633 | 125,000 | |||||||||||||||||||||||||||||||||||||||||||
NuStar, Preferred Equity | (f)(k)(s) | Midstream | 12.8% | 6/29/28 | 3,910,165 | 106,752 | 117,890 | |||||||||||||||||||||||||||||||||||||||||||
Segreto Power Holdings, LLC, Preferred Equity | (f)(g)(m)(o)(s) | Power | 13.1% | 6/30/25 | 70,297 | 99,761 | 90,824 | |||||||||||||||||||||||||||||||||||||||||||
USA Compression Partners, LP, Preferred Equity | (k)(s) | Midstream | 9.8% | 4/3/28 | 79,336 | 77,851 | 86,888 | |||||||||||||||||||||||||||||||||||||||||||
Total Preferred Equity | 497,019 | 475,077 | ||||||||||||||||||||||||||||||||||||||||||||||||
Principal Amount(c) | Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC—2.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | (k)(s)(z) | Power | $ | 60,603 | $ | 54,514 | $ | 52,131 | ||||||||||||||||||||||||||||||||||||||||||
Total Sustainable Infrastructure Investments, LLC | 54,514 | 52,131 | ||||||||||||||||||||||||||||||||||||||||||||||||
(continued)
2022
Portfolio Company(a) | Footnotes | Industry | Number of Shares | Amortized Cost | Fair Value(d) | |||||||||||||||||||||
Equity/Other—29.0%(l) | ||||||||||||||||||||||||||
Abaco Energy Technologies LLC, Common Equity | (f)(o)(s) | Service & Equipment |
| 6,944,444 | $ | 6,944 | $ | 653 | ||||||||||||||||||
AIRRO (Mauritius) Holdings II, Warrants | (f)(k)(o)(p)(s) | Power | 35 | 2,652 | 2,090 | |||||||||||||||||||||
Allied Wireline Services, LLC, Common Equity | (f)(n)(o)(s)(x) | Service & Equipment | 48,400 | 1,527 | — | |||||||||||||||||||||
Allied Wireline Services, LLC, Warrants | (f)(n)(o)(s)(x) | Service & Equipment | 22,000 | — | — | |||||||||||||||||||||
Arena Energy, LP, Contingent Value Rights | (f)(o)(s) | Upstream | 126,632,117 | 351 | 923 | |||||||||||||||||||||
Ascent Resources Utica Holdings, LLC, Common Equity | (f)(o)(q)(s) | Upstream | 148,692,909 | 44,700 | 36,579 | |||||||||||||||||||||
Chisholm Oil and Gas, LLC, Series A Units | (g)(o)(s) | Upstream | 14,700,000 | 14,700 | — | |||||||||||||||||||||
Cimarron Energy Holdco Inc., Common Equity | (f)(o)(s) | Service & Equipment | 4,302,293 | 3,950 | — | |||||||||||||||||||||
Cimarron Energy Holdco Inc., Participation Option | (f)(o)(s) | Service & Equipment | 25,000,000 | 1,289 | — | |||||||||||||||||||||
Great Western Petroleum, LLC, Common Equity | (f)(o)(r)(s)(w) | Upstream | 105,785 | 30,790 | 36,236 | |||||||||||||||||||||
Harvest Oil & Gas Corp., Common Equity | (f)(o)(w) | Upstream | 135,062 | 17,153 | 2,838 | |||||||||||||||||||||
Limetree Bay Energy, LLC, Class A Units | (f)(o)(s)(w) | Midstream | 50,494,585 | 19,069 | 6,046 | |||||||||||||||||||||
Lonestar Resources US Inc., Common Equity | (f)(o)(w) | Upstream | 864,000 | 2,376 | 11,552 | |||||||||||||||||||||
Maverick Natural Resources, LLC, Common Equity | (f)(g)(n)(o)(s) | Upstream | 503,176 | 138,208 | 260,142 | |||||||||||||||||||||
MB Precision Investment Holdings LLC, Class A-2 Units | (f)(n)(o)(s) | Industrials | 1,426,110 | 490 | — | |||||||||||||||||||||
MECO IV Holdco, LLC, Class A-1 Units | (f)(n)(o)(s)(x) | Upstream | 1,225,000 | 2,161 | 4,460 | |||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Premium) | (f)(k)(o)(s) | Midstream | 2,187,500 | 3,083 | 572 | |||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Par) | (f)(k)(o)(s) | Midstream | 3,125,000 | 2,623 | 662 | |||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Premium) | (f)(k)(o)(s) | Midstream | 781,250 | 576 | 156 | |||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Par) | (f)(k)(o)(s) | Midstream | 546,880 | 630 | 138 | |||||||||||||||||||||
Permian Production Holdings, LLC, Common Equity | (f)(n)(o)(s)(w) | Upstream | 1,951,667 | — | 8,392 | |||||||||||||||||||||
Ridgeback Resources Inc., Common Equity | (f)(k)(o)(s)(t)(w) | Upstream | 9,599,928 | 58,985 | 48,871 | |||||||||||||||||||||
Rosehill Operating Company, LLC, Common Equity | (f)(n)(o)(s) | Upstream | 13,973 | 2,182 | 3,985 | |||||||||||||||||||||
Swift Worldwide Resources Holdco Limited, Common Equity | (f)(k)(o)(s)(u) | Service & Equipment | 3,750,000 | 6,028 | 2,963 | |||||||||||||||||||||
USA Compression Partners, LP, Warrants (Market) | (f)(k)(o)(s) | Midstream | 793,359 | 555 | 2,408 | |||||||||||||||||||||
USA Compression Partners, LP, Warrants (Premium) | (f)(k)(o)(s) | Midstream | 1,586,719 | 714 | 3,735 | |||||||||||||||||||||
Warren Resources, Inc., Common Equity | (f)(o)(s)(x) | Upstream | 4,415,749 | 20,754 | 26,715 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total Equity/Other | 382,490 | 460,116 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
TOTAL INVESTMENTS—145.3% | $ | 2,290,662 | 2,305,706 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS—(45.3%) | (718,552 | ) | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
NET ASSETS—100.0% | $ | 1,587,154 | ||||||||||||||||||||||||
|
|
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor(b) | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Equity/Other—33.2%(l) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Abaco Energy Technologies LLC, Common Equity | (f)(o)(s) | Service & Equipment | 6,944,444 | $ | 6,944 | $ | 872 | |||||||||||||||||||||||||||||||||||||||||||
AIRRO (Mauritius) Holdings II, Warrants, Strike: $1.00 | (f)(k)(o)(p)(s) | Power | 7/24/25 | 35 | 2,652 | 1,928 | ||||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Common Equity | (f)(n)(o)(s)(z) | Service & Equipment | 48,400 | 1,527 | — | |||||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Warrants | (f)(n)(o)(s)(z) | Service & Equipment | 22,000 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Arena Energy, LP, Contingent Value Rights | (f)(o)(s) | Upstream | 2/1/25 | 126,632,117 | 351 | 1,697 | ||||||||||||||||||||||||||||||||||||||||||||
Ascent Resources Utica Holdings, LLC, Common Equity | (f)(o)(q)(s) | Upstream | 148,692,909 | 44,700 | 53,009 | |||||||||||||||||||||||||||||||||||||||||||||
Cimarron Energy Holdco Inc., Common Equity | (f)(o)(s) | Service & Equipment | 4,302,293 | 3,950 | — | |||||||||||||||||||||||||||||||||||||||||||||
Cimarron Energy Holdco Inc., Participation Option | (f)(o)(s) | Service & Equipment | 25,000,000 | 1,289 | — | |||||||||||||||||||||||||||||||||||||||||||||
GWP Midstream Holdco, LLC, Common Equity | (f)(o)(r)(s)(y) | Midstream | 105,785 | 6,681 | 6,681 | |||||||||||||||||||||||||||||||||||||||||||||
Harvest Oil & Gas Corp., Common Equity | (f)(o)(y) | Upstream | 135,062 | 15,059 | 810 | |||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Energy, LLC, Class A Units | (f)(o)(s)(y) | Midstream | 76,938,973 | 21,458 | 4,616 | |||||||||||||||||||||||||||||||||||||||||||||
Maverick Natural Resources, LLC, Common Equity | (f)(g)(n)(o)(s) | Upstream | 503,176 | 138,208 | 410,778 | |||||||||||||||||||||||||||||||||||||||||||||
MB Precision Investment Holdings LLC, Class A-2 Units | (f)(n)(o)(s) | Industrials | 1,426,110 | 490 | — | |||||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Par), Strike: $14.54 | (f)(k)(o)(s) | Midstream | 12/31/25 | 2,187,500 | 3,083 | 129 | ||||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Premium), Strike: $17.45 | (f)(k)(o)(s) | Midstream | 12/31/25 | 3,125,000 | 2,623 | 130 | ||||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Premium), Strike: $16.27 | (f)(k)(o)(s) | Midstream | 12/31/25 | 781,250 | 576 | 31 | ||||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Par), Strike: $13.56 | (f)(k)(o)(s) | Midstream | 12/31/25 | 546,880 | 630 | 32 | ||||||||||||||||||||||||||||||||||||||||||||
Permian Production Holdings, LLC, Common Equity | (f)(n)(o)(s)(y) | Upstream | 1,968,861 | 1 | 10,594 | |||||||||||||||||||||||||||||||||||||||||||||
Ridgeback Resources Inc., Common Equity | (f)(k)(o)(s)(t)(y) | Upstream | 9,599,928 | 53,677 | 51,460 | |||||||||||||||||||||||||||||||||||||||||||||
Swift Worldwide Resources Holdco Limited, Common Equity | (f)(k)(o)(s)(u) | Service & Equipment | 3,750,000 | 6,029 | 2,194 | |||||||||||||||||||||||||||||||||||||||||||||
Telpico, LLC, Common Equity | (f)(n)(o)(s)(y) | Upstream | 50 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Tenrgys, LLC, Common Equity | (f)(n)(o)(s) | Upstream | 50 | 7,571 | 6,483 | |||||||||||||||||||||||||||||||||||||||||||||
USA Compression Partners, LP, Common Equity | (f)(k)(o) | Midstream | 84,779 | 1,617 | 1,418 | |||||||||||||||||||||||||||||||||||||||||||||
USA Compression Partners, LP, Warrants (Premium), Strike: $19.59 | (f)(k)(o)(s) | Midstream | 4/2/28 | 1,586,719 | 714 | 3,746 | ||||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc., Common Equity | (f)(o)(s)(z) | Upstream | 4,415,749 | 20,754 | 37,777 | |||||||||||||||||||||||||||||||||||||||||||||
Total Equity/Other | 340,584 | 594,385 | ||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS—135.8% | $ | 2,237,968 | 2,431,336 | |||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS—(35.8%) | (x) | (640,081) | ||||||||||||||||||||||||||||||||||||||||||||||||
NET ASSETS—100.0% | $ | 1,791,255 |
Counterparty | Type | Location | Period | Bbls | Weighted Average Price ($/Bbls) | Unrealized Appreciation(w) | Unrealized Depreciation(w) | |||||||||||||||||||||||||||||||||||||
BP Energy Co. | Fixed | ICE Brent | July 1, 2022 – December 31, 2023 | 255,958 | $82.47 | $ | — | $ | 3,156 | |||||||||||||||||||||||||||||||||||
Total Swap Contracts—Crude Oil | $ | — | $ | 3,156 |
(continued)
2022
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Counterparty | Type | Location | Period | MMBtu | Weighted Average Price ($/MMBtu) | Unrealized Appreciation(w) | Unrealized Depreciation(w) | |||||||||||||||||||||||||||||||||||||
BP Energy Co. | Fixed | NYMEX Henry Hub | July 1, 2022 – December 31, 2023 | 492,834 | $4.04 | $ | — | $ | 432 | |||||||||||||||||||||||||||||||||||
Total Swap Contracts—Natural Gas | $ | — | $ | 432 | ||||||||||||||||||||||||||||||||||||||||
TOTAL SWAP CONTRACTS | $ | — | $ | 3,588 |
(continued)
2022
Portfolio Company | Fair Value at December 31, 2020 | Purchases, Paid- in-Kind Interest and Transfers In | Sales, Repayments and Transfers Out | Accretion of Discount | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at September 30, 2021 | Interest Income(1) | PIK Income(1) | Dividend Income(1) | ||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||
Limetree Bay Energy, LLC | $ | — | $ | 13,910 | $ | — | $ | — | $ | — | $ | (10,743 | ) | $ | 3,167 | $ | — | $ | — | $ | — | |||||||||||||||||||
Permian Production Holdings, LLC | 11,446 | 175 | (6,401 | ) | 220 | 1,106 | 1,303 | 7,849 | 898 | 175 | — | |||||||||||||||||||||||||||||
Warren Resources, Inc.(2) | 27,788 | 69 | (27,857 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Senior Secured Bonds | ||||||||||||||||||||||||||||||||||||||||
Great Western Petroleum, LLC | — | 53,727 | — | 133 | — | 2,202 | 56,062 | 4,155 | — | — | ||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | 25,538 | — | (3,810 | ) | — | (21,752 | ) | 24 | — | — | — | — | ||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | 36,308 | — | (5,137 | ) | 19 | (29,021 | ) | (2,169 | ) | — | 19 | — | — | |||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | 89,968 | 43,291 | (9,889 | ) | — | (49,783 | ) | (73,587 | ) | — | — | — | — | |||||||||||||||||||||||||||
Unsecured Debt | ||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | — | — | (6,298 | ) | — | (31,516 | ) | 37,814 | — | — | — | — | ||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | — | — | (1,648 | ) | — | (8,244 | ) | 9,892 | — | — | — | — | ||||||||||||||||||||||||||||
Preferred Equity | ||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC, Preferred Equity | — | — | — | — | (53,548 | ) | 53,548 | — | — | — | — | |||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC, Preferred Equity | — | — | — | — | (86,729 | ) | 86,729 | — | — | — | — | |||||||||||||||||||||||||||||
Equity/Other | ||||||||||||||||||||||||||||||||||||||||
Great Western Petroleum, LLC, Common Equity | — | 30,790 | — | — | — | 5,446 | 36,236 | — | — | — | ||||||||||||||||||||||||||||||
Harvest Oil & Gas Corp., Common Equity | 2,794 | — | (405 | ) | — | — | 449 | 2,838 | — | — | — | |||||||||||||||||||||||||||||
Limetree Bay Energy, LLC, Class A Units | — | 19,069 | — | — | — | (13,023 | ) | 6,046 | — | — | — | |||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC, Common Equity | — | — | — | — | (3,406 | ) | 3,406 | — | — | — | — | |||||||||||||||||||||||||||||
Lonestar Resources US Inc., Common Equity | 2,592 | — | — | — | — | 8,960 | 11,552 | — | — | — | ||||||||||||||||||||||||||||||
Permian Production Holdings, LLC, Common Equity | — | — | — | — | — | 8,392 | 8,392 | — | — | 1,574 | ||||||||||||||||||||||||||||||
Ridgeback Resources Inc., Common Equity | 38,385 | — | — | — | — | 10,486 | 48,871 | — | — | — | ||||||||||||||||||||||||||||||
Warren Resources, Inc., Common Equity(2) | 4,460 | — | (20,754 | ) | — | — | 16,294 | — | — | — | — | |||||||||||||||||||||||||||||
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$ | 239,279 | $ | 161,031 | $ | (82,199 | ) | $ | 372 | $ | (282,893 | ) | $ | 145,423 | $ | 181,013 | $ | 5,072 | $ | 175 | $ | 1,574 | |||||||||||||||||||
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Portfolio Company | Fair Value at December 31, 2021 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at June 30, 2022 | Interest Income(3) | PIK Income(3) | Dividend Income(3) | |||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Energy, LLC | $ | 3,166 | $ | — | $ | (1,587) | $ | (12,756) | $ | 11,177 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Permian Production Holdings, LLC | 7,889 | 587 | (3,674) | 551 | (634) | 4,719 | 291 | 57 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Bonds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Great Western Petroleum, LLC | 58,055 | 96 | (55,096) | 1,087 | (4,142) | — | 2,649 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Great Western Petroleum, LLC, Common Equity | 40,731 | — | (82,883) | 52,093 | (9,941) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
GWP Midstream Holdco, LLC, Common Equity | — | 6,681 | — | — | — | 6,681 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Harvest Oil & Gas Corp., Common Equity | 2,836 | — | (743) | — | (1,283) | 810 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Energy, LLC, Class A Units | 6,046 | 1,795 | — | — | (3,225) | 4,616 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Permian Production Holdings, LLC, Common Equity | 8,829 | — | — | — | 1,765 | 10,594 | — | — | 1,726 | |||||||||||||||||||||||||||||||||||||||||||||||
Ridgeback Resources Inc., Common Equity | 48,356 | — | (5,537) | 229 | 8,412 | 51,460 | — | — | 3,691 | |||||||||||||||||||||||||||||||||||||||||||||||
Telpico, LLC, Common Equity | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 175,908 | $ | 9,159 | $ | (149,520) | $ | 41,204 | $ | 2,129 | $ | 78,880 | $ | 2,940 | $ | 57 | $ | 5,417 |
(continued)
2022
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Portfolio Company | Fair Value at December 31, 2020 | Purchases, Paid- in-Kind Interest and Transfers In | Sales, Repayments and Transfers Out | Accretion of Discount | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at September 30, 2021 | Interest Income(1) | PIK Income(1) | Dividend Income(1) | ||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC | $ | 53,007 | $ | 5,280 | $ | (207 | ) | $ | — | $ | — | $ | (6,787 | ) | $ | 51,293 | $ | 4,104 | $ | 5,280 | $ | — | ||||||||||||||||||
Allied Downhole Technologies, LLC | — | 7,637 | (2,500 | ) | — | — | 1 | 5,138 | 139 | 137 | — | |||||||||||||||||||||||||||||
MECO IV Holdco, LLC | — | 22,294 | — | — | — | — | 22,294 | 2 | 500 | — | ||||||||||||||||||||||||||||||
Warren Resources, Inc.(2) | — | 27,073 | (3,446 | ) | — | — | — | 23,627 | 1,997 | 200 | — | |||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | ||||||||||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | 61,816 | — | (6,089 | ) | — | — | (1,297 | ) | 54,430 | — | — | 4,960 | ||||||||||||||||||||||||||||
Equity/Other | ||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Common Equity | 1,904 | — | — | — | — | (1,904 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Warrants | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
MECO IV Holdco, LLC, Class A-1 Units | — | 2,161 | — | — | — | 2,299 | 4,460 | — | — | — | ||||||||||||||||||||||||||||||
Warren Resources, Inc., Common Equity(2) | — | 20,754 | — | — | — | 5,961 | 26,715 | — | — | — | ||||||||||||||||||||||||||||||
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$ | 116,727 | $ | 85,199 | $ | (12,242 | ) | $ | — | $ | — | $ | (1,727 | ) | $ | 187,957 | $ | 6,242 | $ | 6,117 | $ | 4,960 | |||||||||||||||||||
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Portfolio Company | Fair Value at December 31, 2021 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at June 30, 2022 | Interest Income(3) | PIK Income(3) | Dividend Income(3) | |||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allied Downhole Technologies, LLC(4) | $ | 7,782 | $ | 319 | $ | — | $ | — | $ | — | $ | 8,101 | $ | — | $ | 319 | $ | — | ||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC | 46,339 | 5,808 | — | — | 1,522 | 53,669 | 2,930 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
MECO IV Holdco, LLC | 22,745 | 455 | (23,200) | — | — | — | — | 455 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc. | 23,688 | 117 | (341) | — | — | 23,464 | 1,179 | 117 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | 50,770 | — | — | — | 1,361 | 52,131 | — | — | 735 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Common Equity | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Warrants | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
MECO IV Holdco, LLC, Class A-1 Units | 4,181 | — | (13,019) | 10,858 | (2,020) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc., Common Equity | 25,854 | — | — | — | 11,923 | 37,777 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 181,359 | $ | 6,699 | $ | (36,560) | $ | 10,858 | $ | 12,786 | $ | 175,142 | $ | 4,109 | $ | 891 | $ | 735 |
2021
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||
Senior Secured Loans—First Lien—42.5% | ||||||||||||||||||||||
AIRRO (Mauritius) Holdings II | (k)(p)(s) | Power | L+350, 3.5% PIK, (3.5% Max PIK) | 1.5% | 7/24/25 | $ | 20,734 | $ | 18,082 | $ | 15,992 | |||||||||||
AIRRO (Mauritius) Holdings II | (e)(k)(p)(s) | Power | L+350, 3.5% PIK, (3.5% Max PIK) | 1.5% | 7/24/25 | 15,189 | 15,189 | 11,715 | ||||||||||||||
Allied Wireline Services, LLC | (f)(n)(o)(s)(x) | Service & Equipment | 10.0% PIK (10.0% Max PIK) | 6/15/25 | 53,007 | 53,007 | 53,007 | |||||||||||||||
ARB Midstream Operating Company, LLC | (s) | Midstream | L+825 | 1.0% | 11/6/21 | 1,807 | 1,804 | 1,698 | ||||||||||||||
Bioenergy Infrastructure Holdings Limited | (k)(s) | Power | L+725 | 1.0% | 12/22/22 | 429 | 429 | 395 | ||||||||||||||
Birch Permian LLC | (s) | Upstream | L+800 | 1.5% | 4/12/23 | 49,865 | 49,598 | 49,372 | ||||||||||||||
Brazos Delaware II LLC | Midstream | L+400 | 5/21/25 | 40,111 | 38,155 | 35,140 | ||||||||||||||||
Cimarron Energy Inc. | (s) | Service & Equipment | L+900 | 1.0% | 6/30/21 | 7,500 | 7,500 | 6,797 | ||||||||||||||
Cox Oil Offshore, LLC, Volumetric Production Payments | (i)(o)(s)(v) | Upstream | 0.0% | 12/31/23 | 100,000 | 37,527 | 31,670 | |||||||||||||||
EIF Van Hook Holdings, LLC | (h) | Midstream | L+525 | 9/5/24 | 33,392 | 32,769 | 21,601 | |||||||||||||||
FR BR Holdings LLC | (f)(h)(s) | Midstream | L+650 | 12/14/23 | 85,700 | 82,258 | 82,966 | |||||||||||||||
FR XIII PAA Holdings HoldCo, LLC | (s) | Midstream | L+725 | 0.5% | 10/15/26 | 29,925 | 29,343 | 29,955 | ||||||||||||||
Luxe Drillship Operating, LLC | (s) | Upstream | 8.0% | 10/30/24 | 16,976 | 16,088 | 15,779 | |||||||||||||||
MECO IV LLC | (s) | Upstream | L+925 | 1.5% | 9/14/21 | 33,250 | 32,951 | 23,275 | ||||||||||||||
MRP CalPeak Holdings, LLC | (h)(s) | Power | L+525 | 1.5% | 1/27/25 | 14,328 | 14,328 | 14,122 | ||||||||||||||
MRP West Power Holdings II, LLC | (h)(s) | Power | L+525 | 1.5% | 1/27/25 | 14,586 | 14,586 | 14,378 | ||||||||||||||
Navitas Midstream Midland Basin LLC | (h) | Midstream | L+450 | 1.0% | 12/13/24 | 29,650 | 28,861 | 29,298 | ||||||||||||||
Navitas Midstream Midland Basin LLC (Mirror Tranche) | Midstream | L+450 | 1.0% | 12/13/24 | 39,400 | 38,041 | 38,931 | |||||||||||||||
NNE Holding LLC | (h)(s) | Upstream | L+475, 4.5% PIK (4.5% Max PIK) | 3/2/22 | 40,455 | 40,419 | 38,432 | |||||||||||||||
Permian Production Holdings, LLC | (f)(s)(w) | Upstream | 7.0%, 2.0% PIK (2.0% Max PIK) | 11/23/25 | 14,075 | 11,498 | 11,446 | |||||||||||||||
Plainfield Renewable Energy Holdings LLC | (o)(s) | Power | 10.0% (10.0% Max PIK) | 8/22/25 | 2,998 | 2,998 | — | |||||||||||||||
Plainfield Renewable Energy Holdings LLC, Letter of Credit | (e)(s) | Power | 10.0% | 8/22/23 | 2,709 | 2,709 | — | |||||||||||||||
Plainfield Renewable Energy Holdings LLC | (s) | Power | 15.5% (9.5% Max PIK) | 8/22/25 | 10,801 | 10,801 | 10,602 | |||||||||||||||
Swift Worldwide Resources US Holdings Corp. | (h)(s) | Service & Equipment | L+1000, 1.0% PIK (1.0% Max PIK) | 1.0% | 7/20/21 | 60,877 | 60,877 | 60,877 | ||||||||||||||
Warren Resources, Inc. | (s)(w) | Upstream | L+900, 1.0% PIK (1.0% Max PIK) | 1.0% | 5/21/21 | 27,788 | 27,788 | 27,788 | ||||||||||||||
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Total Senior Secured Loans—First Lien | 667,606 | 625,236 | ||||||||||||||||||||
Unfunded Loan Commitments | (17,898 | ) | (17,898 | ) | ||||||||||||||||||
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Net Senior Secured Loans—First Lien | 649,708 | 607,338 | ||||||||||||||||||||
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Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Liens—50.7% | ||||||||||||||||||||||||||||||||||||||||||||||||||
AIRRO (Mauritius) Holdings II | (k)(p)(s) | Power | L+350, 3.5% PIK (3.5% Max PIK) | 1.5% | 7/24/25 | $ | 22,067 | $ | 19,415 | $ | 19,229 | |||||||||||||||||||||||||||||||||||||||
AIRRO (Mauritius) Holdings II | (e)(k)(p)(s) | Power | L+350, 3.5% PIK (3.5% Max PIK) | 1.5% | 7/24/25 | 14,602 | 14,602 | 12,724 | ||||||||||||||||||||||||||||||||||||||||||
Allied Downhole Technologies, LLC | (f)(s)(x) | Service & Equipment | 8.0% PIK (8.0% Max PIK) | 9/30/22 | 7,782 | 7,782 | 7,782 | |||||||||||||||||||||||||||||||||||||||||||
Allied Downhole Technologies, LLC | (e)(s)(x) | Service & Equipment | 8.0% PIK (8.0% Max PIK) | 9/30/22 | 2,500 | 2,500 | 2,500 | |||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC | (f)(s)(x) | Service & Equipment | 10.0% PIK (10.0% Max PIK) | 6/15/25 | 58,080 | 58,080 | 46,339 | |||||||||||||||||||||||||||||||||||||||||||
ARB Midstream Operating Company, LLC | (s) | Midstream | L+825 | 1.0% | 5/6/22 | 625 | 624 | 625 | ||||||||||||||||||||||||||||||||||||||||||
Bioenergy Infrastructure Holdings Limited | (k)(s) | Power | L+725 | 1.0% | 12/22/22 | 413 | 413 | 403 | ||||||||||||||||||||||||||||||||||||||||||
Birch Permian LLC | (s) | Upstream | L+800 | 1.5% | 4/12/23 | 42,781 | 42,642 | 43,209 | ||||||||||||||||||||||||||||||||||||||||||
Brazos Delaware II LLC | Midstream | L+400 | 5/21/25 | 39,685 | 38,112 | 38,738 | ||||||||||||||||||||||||||||||||||||||||||||
Cimarron Energy Inc. | (f)(m)(o)(s) | Service & Equipment | L+900 | 1.0% | 12/31/24 | 7,500 | 7,311 | 3,600 | ||||||||||||||||||||||||||||||||||||||||||
Cox Oil Offshore, LLC, Volumetric Production Payments | (i)(o)(s)(v) | Upstream | 0.0% | 12/31/23 | 100,000 | 23,342 | 28,987 | |||||||||||||||||||||||||||||||||||||||||||
CPV Maryland, LLC | Power | L+400 | 1.0% | 5/11/28 | 15,353 | 15,182 | 15,276 | |||||||||||||||||||||||||||||||||||||||||||
CPV Shore Holdings LLC | Power | L+375 | 12/29/25 | 23,601 | 22,525 | 22,682 | ||||||||||||||||||||||||||||||||||||||||||||
EIF Van Hook Holdings, LLC | Midstream | L+525 | 9/5/24 | 30,332 | 29,889 | 29,081 | ||||||||||||||||||||||||||||||||||||||||||||
FR BR Holdings LLC | (f)(s) | Midstream | L+650 | 12/14/23 | 82,610 | 80,293 | 83,436 | |||||||||||||||||||||||||||||||||||||||||||
FR XIII PAA Holdings HoldCo, LLC | (s) | Midstream | L+725 | 0.5% | 10/15/26 | 29,141 | 28,650 | 30,307 | ||||||||||||||||||||||||||||||||||||||||||
GasLog Ltd. | (e)(k)(o)(s) | Midstream | L+775 | 3/21/29 | 15,113 | 15,113 | 15,000 | |||||||||||||||||||||||||||||||||||||||||||
Generation Bridge LLC | Power | L+500 | 0.8% | 12/1/28 | 7,837 | 7,681 | 7,876 | |||||||||||||||||||||||||||||||||||||||||||
Generation Bridge LLC | Power | L+500 | 0.8% | 12/1/28 | 163 | 160 | 164 | |||||||||||||||||||||||||||||||||||||||||||
GIP II Blue Holding LP | Midstream | L+450 | 1.0% | 9/29/28 | 7,481 | 7,372 | 7,477 | |||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Energy, LLC | (f)(o)(s)(w) | Midstream | 0.0% | 10/31/21 | 26,444 | 14,343 | 3,166 | |||||||||||||||||||||||||||||||||||||||||||
Lucid Energy Group II Borrower LLC | Midstream | L+425 | 0.8% | 11/22/28 | 25,000 | 24,752 | 24,737 | |||||||||||||||||||||||||||||||||||||||||||
MECO IV Holdco, LLC | (s)(x) | Upstream | 8.0% | 9/14/25 | 22,745 | 22,745 | 22,745 | |||||||||||||||||||||||||||||||||||||||||||
Medallion Midland Acquisition LP | Midstream | L+375 | 0.8% | 10/18/28 | 7,980 | 7,941 | 7,954 | |||||||||||||||||||||||||||||||||||||||||||
MRP CalPeak Holdings, LLC | (s) | Power | L+500 | 1.5% | 1/27/25 | 12,842 | 12,842 | 12,842 | ||||||||||||||||||||||||||||||||||||||||||
MRP West Power Holdings II, LLC | (s) | Power | L+500 | 1.5% | 1/27/25 | 13,887 | 13,887 | 13,887 | ||||||||||||||||||||||||||||||||||||||||||
Navitas Midstream Midland Basin LLC | (f) | Midstream | L+400 | 1.0% | 12/13/24 | 68,341 | 66,690 | 68,359 | ||||||||||||||||||||||||||||||||||||||||||
NNE Holding LLC | (s) | Upstream | L+475, 4.5% PIK (4.5% Max PIK) | 12/31/23 | 42,333 | 42,302 | 41,696 | |||||||||||||||||||||||||||||||||||||||||||
OE2 North, LLC | (s) | Midstream | L+525 | 1.0% | 5/21/26 | 11,627 | 11,527 | 11,688 | ||||||||||||||||||||||||||||||||||||||||||
OE2 North, LLC | (e)(s) | Midstream | L+525 | 1.0% | 5/21/26 | 18,373 | 18,373 | 18,468 | ||||||||||||||||||||||||||||||||||||||||||
Oryx Midstream Services Permian Basin LLC | (f) | Midstream | L+325 | 0.5% | 10/5/28 | 36,000 | 35,825 | 35,817 | ||||||||||||||||||||||||||||||||||||||||||
Parkway Generation LLC | (h) | Power | L+475 | 0.8% | 11/5/28 | 6,140 | 6,079 | 6,117 | ||||||||||||||||||||||||||||||||||||||||||
Parkway Generation LLC | (h) | Power | L+475 | 0.8% | 11/5/28 | 43,860 | 43,421 | 43,654 | ||||||||||||||||||||||||||||||||||||||||||
Permian Production Holdings, LLC | (f)(s)(w) | Upstream | 7.0%, 2.0% PIK (2.0% Max PIK) | 11/23/25 | 7,889 | 6,692 | 7,889 | |||||||||||||||||||||||||||||||||||||||||||
Pinnacle Midland Gas Holdco LLC | (s) | Midstream | L+675 | 1.0% | 12/2/26 | 5,385 | 5,306 | 5,305 | ||||||||||||||||||||||||||||||||||||||||||
Pinnacle Midland Gas Holdco LLC | (e)(s) | Midstream | L+675 | 1.0% | 12/2/26 | 6,462 | 6,462 | 6,365 | ||||||||||||||||||||||||||||||||||||||||||
Plainfield Renewable Energy Holdings LLC | (f)(s) | Power | 6.7%, 8.8% PIK (9.5% Max PIK) | 8/22/25 | 11,804 | 11,804 | 11,954 |
(continued)
2021
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||
Senior Secured Loans—Second Lien—19.3% | ||||||||||||||||||||||
Aethon III BR LLC | (s) | Upstream | L+750 | 1.5% | 1/10/25 | $ | 20,000 | $ | 19,740 | $ | 20,000 | |||||||||||
Aethon United BR LP | (f)(h)(s) | Upstream | L+675 | 1.0% | 9/8/23 | 148,150 | 146,950 | 147,365 | ||||||||||||||
Chisholm Energy Holdings, LLC | (f)(s) | Upstream | L+625 | 1.5% | 5/15/26 | 21,429 | 21,353 | 20,792 | ||||||||||||||
Encino Acquisition Partners Holdings LLC | (f) | Upstream | L+675 | 1.0% | 10/29/25 | 41,828 | 36,014 | 38,561 | ||||||||||||||
Peak Exploration & Production, LLC | (f)(s) | Upstream | L+675 | 1.5% | 11/16/23 | 13,545 | 13,497 | 13,334 | ||||||||||||||
Peak Exploration & Production, LLC | (e)(s) | Upstream | L+675 | 1.5% | 11/16/23 | 1,505 | 1,505 | 1,482 | ||||||||||||||
Penn Virginia Holdings Corp. | (f)(h)(k)(s) | Upstream | L+700 | 1.0% | 9/29/22 | 20,950 | 20,587 | 19,563 | ||||||||||||||
SilverBow Resources, Inc. | (f)(h)(k)(s) | Upstream | L+750 | 1.0% | 12/15/24 | 19,000 | 18,877 | 16,720 | ||||||||||||||
|
|
|
| |||||||||||||||||||
Total Senior Secured Loans—Second Lien | 278,523 | 277,817 | ||||||||||||||||||||
Unfunded Loan Commitments | (1,505 | ) | (1,505 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||||
Net Senior Secured Loans—Second Lien | 277,018 | 276,312 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||
Senior Secured Bonds—23.8% | ||||||||||||||||||||||
Black Swan Energy Ltd. | (k)(s) | Upstream | 9.0% | 1/20/24 | 90,000 | 90,000 | 89,100 | |||||||||||||||
Limetree Bay Ventures, LLC | (f)(m)(o)(s)(w) | Midstream | 20.0% PIK (20.0% Max PIK) | 1/4/21 | 25,538 | 25,562 | 25,538 | |||||||||||||||
Limetree Bay Ventures, LLC | (f)(m)(o)(s)(w) | Midstream | 20.0% PIK (20.0% Max PIK) | 1/4/21 | 36,308 | 34,139 | 36,308 | |||||||||||||||
Limetree Bay Ventures, LLC | (f)(m)(o)(s)(w) | Midstream | 20.0% PIK (20.0% Max PIK) | 1/4/21 | 89,968 | 16,381 | 89,968 | |||||||||||||||
Velvet Energy Ltd. | (f)(k)(s) | Upstream | 9.0% | 10/5/23 | 120,000 | 120,000 | 99,128 | |||||||||||||||
|
|
|
| |||||||||||||||||||
Total Senior Secured Bonds | 286,082 | 340,042 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||
Unsecured Debt—9.5% | ||||||||||||||||||||||
Global Jet Capital Holdings, LP | (f)(o)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 1/30/25 | 1,330 | 1,178 | 1,172 | |||||||||||||||
Global Jet Capital Holdings, LP | (f)(o)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 4/30/25 | 8,450 | 7,484 | 7,447 | |||||||||||||||
Global Jet Capital Holdings, LP | (f)(o)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 9/3/25 | 1,746 | 1,547 | 1,539 | |||||||||||||||
Global Jet Capital Holdings, LP | (f)(o)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 9/29/25 | 1,644 | 1,456 | 1,449 | |||||||||||||||
Global Jet Capital Holdings, LP | (f)(o)(s) | Industrials | 15.0% PIK (15.0% Max PIK) | 12/2/26 | 1,446 | 1,280 | 1,274 | |||||||||||||||
Great Western Petroleum, LLC | (f)(s) | Upstream | 8.5% | 4/15/25 | 13,636 | 13,183 | 12,954 | |||||||||||||||
Great Western Petroleum, LLC | (f) | Upstream | 9.0% | 9/30/21 | 35,830 | 35,827 | 21,140 | |||||||||||||||
Hammerhead Resources Inc. | (f)(k)(o)(s) | Upstream | 12.0% PIK (12.0% Max PIK) | 7/15/24 | 55,607 | 55,144 | 55,607 | |||||||||||||||
Limetree Bay Ventures, LLC | (f)(m)(o)(s)(w) | Midstream | 15.0% PIK (15.0% Max PIK) | 3/3/21 | 37,778 | 37,814 | — | |||||||||||||||
Limetree Bay Ventures, LLC | (f)(m)(o)(s)(w) | Midstream | 20.0% PIK (20.0% Max PIK) | 2/1/21 | 9,882 | 9,892 | — | |||||||||||||||
Moss Creek Resources, LLC | (f) | Upstream | 7.5% | 1/15/26 | 6,693 | 5,075 | 5,103 | |||||||||||||||
Tenrgys, LLC | (f)(m)(n)(o)(s) | Upstream | L+900 | 2.5% | 12/23/18 | 75,000 | 75,300 | 26,875 | ||||||||||||||
|
|
|
| |||||||||||||||||||
Total Unsecured Debt | 245,180 | 134,560 | ||||||||||||||||||||
|
|
|
|
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Plainfield Renewable Energy Holdings LLC | (f)(s) | Power | 10.0% PIK (10.0% Max PIK) | 8/22/25 | $ | 3,304 | $ | 3,304 | $ | — | ||||||||||||||||||||||||||||||||||||||||
Plainfield Renewable Energy Holdings LLC, Letter of Credit | (e)(o)(s) | Power | 10.0% | 8/22/25 | 2,709 | 2,709 | — | |||||||||||||||||||||||||||||||||||||||||||
Potomac Energy Center, LLC | Power | L+600 | 0.5% | 11/10/26 | 59,000 | 57,848 | 58,705 | |||||||||||||||||||||||||||||||||||||||||||
Traverse Midstream Partners LLC | Midstream | SF+425 | 1.0% | 9/27/24 | 31,702 | 31,788 | 31,623 | |||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc. | (s)(x) | Upstream | L+900, 1.0% PIK (1.0% Max PIK) | 1.0% | 5/22/24 | 23,688 | 23,688 | 23,688 | ||||||||||||||||||||||||||||||||||||||||||
Total Senior Secured Loans—First Lien | 892,016 | 872,094 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unfunded Loan Commitments | (59,759) | (59,759) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Senior Secured Loans—First Lien | 832,257 | 812,335 | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—Second Lien—5.2% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aethon III BR LLC | (f)(s) | Upstream | L+750 | 1.5% | 1/10/25 | 20,000 | 19,792 | 20,200 | ||||||||||||||||||||||||||||||||||||||||||
Chisholm Energy Holdings, LLC | (f)(s) | Upstream | L+625 | 1.5% | 5/15/26 | 17,143 | 17,091 | 17,314 | ||||||||||||||||||||||||||||||||||||||||||
Olympus Energy, LLC | (f)(s) | Upstream | L+750 | 1.0% | 7/23/26 | 18,750 | 18,750 | 18,750 | ||||||||||||||||||||||||||||||||||||||||||
Olympus Energy, LLC | (e)(s) | Upstream | L+750 | 1.0% | 7/23/26 | 11,250 | 11,250 | 11,250 | ||||||||||||||||||||||||||||||||||||||||||
Peak Exploration & Production, LLC | (f)(s) | Upstream | L+675 | 1.5% | 11/16/23 | 13,545 | 13,512 | 13,438 | ||||||||||||||||||||||||||||||||||||||||||
Peak Exploration & Production, LLC | (e)(s) | Upstream | L+675 | 1.5% | 11/16/23 | 1,505 | 1,505 | 1,493 | ||||||||||||||||||||||||||||||||||||||||||
SilverBow Resources, Inc. | (f)(k)(s) | Upstream | L+750 | 1.0% | 12/15/26 | 14,250 | 14,177 | 14,393 | ||||||||||||||||||||||||||||||||||||||||||
Total Senior Secured Loans—Second Lien | 96,077 | 96,838 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unfunded Loan Commitments | (12,755) | (12,755) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Senior Secured Loans—Second Lien | 83,322 | 84,083 | ||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Bonds—5.1% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Great Western Petroleum, LLC | (f)(w) | Upstream | 12.0% | 9/1/25 | 55,096 | 53,913 | 58,055 | |||||||||||||||||||||||||||||||||||||||||||
SM Energy Co. | (k) | Upstream | 10.0% | 1/15/25 | 12,000 | 13,337 | 13,220 | |||||||||||||||||||||||||||||||||||||||||||
ST EIP Holdings Inc. | (s) | Midstream | 6.1% | 1/10/30 | 10,526 | 10,016 | 10,371 | |||||||||||||||||||||||||||||||||||||||||||
Total Senior Secured Bonds | 77,266 | 81,646 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Debt—24.8% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aethon United BR LP | (f) | Upstream | 8.3% | 2/15/26 | 40,500 | 40,500 | 43,552 | |||||||||||||||||||||||||||||||||||||||||||
Archrock Partners, L.P. | (f)(k) | Midstream | 6.3% | 4/1/28 | 22,239 | 23,141 | 23,221 | |||||||||||||||||||||||||||||||||||||||||||
Cheniere Energy Partners LP Holdings, LLC | (f)(k) | Midstream | 4.5% | 10/1/29 | 13,500 | 14,531 | 14,333 | |||||||||||||||||||||||||||||||||||||||||||
Colgate Energy Partners III LLC | (f) | Upstream | 5.9% | 7/1/29 | 8,000 | 8,110 | 8,251 | |||||||||||||||||||||||||||||||||||||||||||
Colgate Energy Partners III LLC | Upstream | 7.8% | 2/15/26 | 23,365 | 24,737 | 25,312 | ||||||||||||||||||||||||||||||||||||||||||||
Endeavor Energy Resources, L.P. | Upstream | 5.8% | 1/30/28 | 31,299 | 33,030 | 33,412 | ||||||||||||||||||||||||||||||||||||||||||||
EnLink Midstream, LLC | (k) | Midstream | 5.4% | 6/1/29 | 6,000 | 6,271 | 6,145 | |||||||||||||||||||||||||||||||||||||||||||
EnLink Midstream, LLC | (f)(k) | Midstream | 5.6% | 1/15/28 | 5,881 | 6,334 | 6,125 |
(continued)
2021
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | |||||||||||||||
Preferred Equity—33.0%(l) | ||||||||||||||||||||||
Abaco Energy Technologies LLC, Preferred Equity | (o)(s) | Service & Equipment | 28,942,003 | $ | 1,447 | $ | 5,354 | |||||||||||||||
Altus Midstream LP, Series A Preferred Units | (j)(s) | Midstream | 11.0% | 6/28/26 | 52,856 | 56,228 | 54,177 | |||||||||||||||
Global Jet Capital Holdings, LP, Preferred Equity | (f)(o)(s) | Industrials | 27,856 | 2,786 | — | |||||||||||||||||
Great Western Petroleum, LLC, Preferred Equity | (f)(h)(r)(s) | Upstream | 15.5% | 12/31/27 | 36,364 | 47,372 | 18,182 | |||||||||||||||
Limetree Bay Ventures, LLC, Preferred Equity | (f)(m)(o)(s)(w) | Midstream | 13.5% | 11/30/24 | 95,821,000 | 86,729 | — | |||||||||||||||
Limetree Bay Ventures, LLC, Preferred Equity | (f)(m)(o)(s)(w) | Midstream | 13.5% | 11/27/23 | 59,819,000 | 53,548 | — | |||||||||||||||
NGL Energy Partners, LP, Preferred Equity | (k)(s) | Midstream | 14.2% | 7/2/27 | 156,250 | 168,049 | 109,375 | |||||||||||||||
NuStar, Preferred Equity | (f)(h)(k)(s) | Midstream | 12.8% | 6/29/28 | 3,910,165 | 102,744 | 118,048 | |||||||||||||||
Segreto Power Holdings, LLC, Preferred Equity | (f)(g)(s) | Power | 13.1% | 6/30/25 | 70,297 | 92,750 | 79,546 | |||||||||||||||
USA Compression Partners, LP, Preferred Equity | (h)(k)(s) | Midstream | 9.8% | 4/3/28 | 79,336 | 77,600 | 86,395 | |||||||||||||||
|
|
|
| |||||||||||||||||||
Total Preferred Equity | 689,253 | 471,077 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||
Number of Shares | Cost | Fair Value(d) | ||||||||||||||||||||
Sustainable Infrastructure Investments, LLC—4.3% | ||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | (k)(s)(x) | Power | 60,603 | $ | 60,603 | $ | 61,816 | |||||||||||||||
|
|
|
| |||||||||||||||||||
Total Sustainable Infrastructure Investments, LLC | 60,603 | 61,816 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||
Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||
Equity/Other—20.3%(l) | ||||||||||||||||||||||
Abaco Energy Technologies LLC, Common Equity | (f)(o)(s) | Service & Equipment |
| 6,944,444 | $ | 6,944 | $ | 896 | ||||||||||||||
AIRRO (Mauritius) Holdings II, Warrants | (f)(k)(o)(p)(s) | Power | 35 | 2,652 | 2,504 | |||||||||||||||||
Allied Wireline Services, LLC, Common Equity | (f)(n)(o)(s)(x) | Service & Equipment | 48,400 | 1,527 | 1,904 | |||||||||||||||||
Allied Wireline Services, LLC, Warrants | (f)(n)(o)(s)(x) | Service & Equipment | 22,000 | — | — | |||||||||||||||||
Arena Energy, LP, Contingent Value Rights | (f)(o)(s) | Upstream | 126,632,117 | 351 | 418 | |||||||||||||||||
Ascent Resources Utica Holdings, LLC, Common Equity | (f)(o)(q)(s) | Upstream | 148,692,908 | 44,700 | 33,084 | |||||||||||||||||
Chisholm Oil and Gas, LLC, Series A Units | (g)(o)(s) | Upstream | 14,700,000 | 14,700 | — | |||||||||||||||||
Cimarron Energy Holdco Inc., Common Equity | (f)(o)(s) | Service & Equipment | 4,302,293 | 3,950 | 30 |
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Hammerhead Resources Inc. | (f)(k)(s) | Upstream | 12.0% PIK (12.0% Max PIK) | 7/15/24 | $ | 64,046 | $ | 63,569 | $ | 64,046 | ||||||||||||||||||||||||||||||||||||||||
Moss Creek Resources, LLC | (f) | Upstream | 7.5% | 1/15/26 | 11,693 | 10,027 | 10,945 | |||||||||||||||||||||||||||||||||||||||||||
NRG Energy, Inc. | (k) | Power | 3.9% | 2/15/32 | 11,625 | 11,619 | 11,411 | |||||||||||||||||||||||||||||||||||||||||||
Penn Virginia Escrow LLC | (k) | Upstream | 9.3% | 8/15/26 | 29,772 | 29,603 | 30,926 | |||||||||||||||||||||||||||||||||||||||||||
Range Resources Corp. | (k) | Upstream | 8.3% | 1/15/29 | 5,000 | 5,643 | 5,584 | |||||||||||||||||||||||||||||||||||||||||||
Range Resources Corp. | (k) | Upstream | 9.3% | 2/1/26 | 3,000 | 3,256 | 3,237 | |||||||||||||||||||||||||||||||||||||||||||
SM Energy Co. | (k) | Upstream | 5.6% | 6/1/25 | 8,000 | 8,041 | 8,079 | |||||||||||||||||||||||||||||||||||||||||||
Southwestern Energy Co. | Upstream | 5.4% | 2/1/29 | 18,928 | 19,731 | 20,043 | ||||||||||||||||||||||||||||||||||||||||||||
Suburban Propane Partners LP | (f)(k) | Midstream | 5.0% | 6/1/31 | 17,690 | 18,359 | 17,919 | |||||||||||||||||||||||||||||||||||||||||||
Tallgrass Energy Partners, LP | (f) | Midstream | 7.5% | 10/1/25 | 13,424 | 14,499 | 14,545 | |||||||||||||||||||||||||||||||||||||||||||
Tallgrass Energy Partners, LP | (f) | Midstream | 6.0% | 3/1/27 | 9,000 | 9,414 | 9,369 | |||||||||||||||||||||||||||||||||||||||||||
Tenrgys, LLC | (f)(m)(n)(o)(s) | Upstream | L+900 | 2.5% | 12/23/18 | 75,000 | 75,300 | 40,613 | ||||||||||||||||||||||||||||||||||||||||||
Total Unsecured Debt | 425,715 | 397,068 |
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Preferred Equity—31.0%(l) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Abaco Energy Technologies LLC, Preferred Equity | (f)(o)(s) | Service & Equipment | 28,942,003 | $ | 1,447 | $ | 3,965 | |||||||||||||||||||||||||||||||||||||||||||
Altus Midstream LP, Series A Preferred Units | (j)(s) | Midstream | 11.0% | 6/28/26 | 52,856 | 58,725 | 61,379 | |||||||||||||||||||||||||||||||||||||||||||
Global Jet Capital Holdings, LP, Preferred Equity | (f)(s) | Industrials | 9.0% PIK (9.0% Max PIK) | 10/1/28 | 167,176 | 12,305 | 12,204 | |||||||||||||||||||||||||||||||||||||||||||
Global Jet Capital Holdings, LP, Preferred Equity | (f)(o)(s) | Industrials | 27,856 | 2,786 | — | |||||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Preferred Equity | (f)(k)(m)(o)(s) | Midstream | 14.2% | 7/2/27 | 156,250 | 157,633 | 125,000 | |||||||||||||||||||||||||||||||||||||||||||
NuStar, Preferred Equity | (f)(k)(s) | Midstream | 12.8% | 6/29/28 | 3,910,165 | 105,291 | 124,050 | |||||||||||||||||||||||||||||||||||||||||||
Segreto Power Holdings, LLC, Preferred Equity | (f)(g)(m)(o)(s) | Power | 13.1% | 6/30/25 | 70,297 | 99,761 | 80,772 | |||||||||||||||||||||||||||||||||||||||||||
USA Compression Partners, LP, Preferred Equity | (k)(s) | Midstream | 9.8% | 4/3/28 | 79,336 | 77,763 | 89,918 | |||||||||||||||||||||||||||||||||||||||||||
Total Preferred Equity | 515,711 | 497,288 | ||||||||||||||||||||||||||||||||||||||||||||||||
Principal Amount(c) | Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC—3.2% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | (k)(s)(x) | Power | $ | 60,603 | $ | 54,514 | $ | 50,770 | ||||||||||||||||||||||||||||||||||||||||||
Total Sustainable Infrastructure Investments, LLC | 54,514 | 50,770 | ||||||||||||||||||||||||||||||||||||||||||||||||
(continued)
2021
Portfolio Company(a) | Footnotes | Industry | Number of Shares | Amortized Cost | Fair Value(d) | |||||||||||||||||
Cimarron Energy Holdco Inc., Participation Option | (f)(o)(s) | Service & Equipment | 25,000,000 | $ | 1,289 | $ | 175 | |||||||||||||||
Denbury Inc., Common Equity | (f)(k)(o) | Upstream | 1,265,510 | 22,906 | 32,511 | |||||||||||||||||
Harvest Oil & Gas Corp., Common Equity | (f)(o)(w) | Upstream | 135,062 | 17,558 | 2,794 | |||||||||||||||||
Limetree Bay Ventures, LLC, Common Equity | (f)(o)(s)(w) | Midstream | 128,645 | 3,406 | — | |||||||||||||||||
Lonestar Resources US Inc., Common Equity | (f)(o)(w) | Upstream | 864,000 | 2,376 | 2,592 | |||||||||||||||||
Luxe Drillship Operating, LLC, Overriding Royalty Interest | (f)(o)(s) | Upstream | N/A | 1,354 | 773 | |||||||||||||||||
Maverick Natural Resources, LLC, Common Equity | (f)(g)(n)(o)(s) | Upstream | 503,176 | 138,208 | 152,860 | |||||||||||||||||
MB Precision Investment Holdings LLC, Class A-2 Units | (f)(n)(o)(s) | Industrials | 1,426,110 | $ | 490 | $ | — | |||||||||||||||
NGL Energy Partners, LP, Warrants (Par) | (f)(k)(o)(s) | Midstream | 2,187,500 | 3,083 | 88 | |||||||||||||||||
NGL Energy Partners, LP, Warrants (Premium) | (f)(k)(o)(s) | Midstream | 3,125,000 | 2,623 | 81 | |||||||||||||||||
NGL Energy Partners, LP, Warrants (Premium) | (f)(k)(o)(s) | Midstream | 781,250 | 576 | 21 | |||||||||||||||||
NGL Energy Partners, LP, Warrants (Par) | (f)(k)(o)(s) | Midstream | 546,880 | 630 | 22 | |||||||||||||||||
Permian Production Holdings, LLC, Common Equity | (f)(n)(o)(s)(w) | Upstream | 1,951,667 | — | — | |||||||||||||||||
Ridgeback Resources Inc., Common Equity | (f)(k)(o)(s)(t)(w) | Upstream | 9,599,928 | 58,985 | 38,385 | |||||||||||||||||
Rosehill Operating Company, LLC, Common Equity | (f)(n)(o)(s) | Upstream | 13,973 | 2,182 | 2,377 | |||||||||||||||||
Swift Worldwide Resources Holdco Limited, Common Equity | (f)(k)(o)(s)(u) | Service & Equipment | 3,750,000 | 6,029 | 2,531 | |||||||||||||||||
UP Energy, LLC, Common Equity | (f)(o)(s) | Upstream | 367,237 | 9,019 | 8,160 | |||||||||||||||||
USA Compression Partners, LP, Warrants (Market) | (f)(h)(k)(o)(s) | Midstream | 793,359 | 555 | 1,412 | |||||||||||||||||
USA Compression Partners, LP, Warrants (Premium) | (f)(h)(k)(o)(s) | Midstream | 1,586,719 | 714 | 2,253 | |||||||||||||||||
Warren Resources, Inc., Common Equity | (f)(o)(s)(w) | Upstream | 4,415,749 | 20,754 | 4,460 | |||||||||||||||||
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Total Equity/Other | 367,561 | 290,331 | ||||||||||||||||||||
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| |||||||||||||||||||
TOTAL INVESTMENTS—152.7% | $ | 2,575,405 | 2,181,476 | |||||||||||||||||||
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| |||||||||||||||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS—(52.7%) | (752,899 | ) | ||||||||||||||||||||
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NET ASSETS—100.0% | $ | 1,428,577 | ||||||||||||||||||||
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|
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||
Equity/Other—29.5%(l) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Abaco Energy Technologies LLC, Common Equity | (f)(o)(s) | Service & Equipment | 6,944,444 | $ | 6,944 | $ | 642 | |||||||||||||||||||||||||||||||||||||||||||
AIRRO (Mauritius) Holdings II, Warrants | (f)(k)(o)(p)(s) | Power | 35 | 2,652 | 2,125 | |||||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Common Equity | (f)(n)(o)(s)(x) | Service & Equipment | 48,400 | 1,527 | — | |||||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Warrants | (f)(n)(o)(s)(x) | Service & Equipment | 22,000 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Arena Energy, LP, Contingent Value Rights | (f)(o)(s) | Upstream | 126,632,117 | 351 | 1,070 | |||||||||||||||||||||||||||||||||||||||||||||
Ascent Resources Utica Holdings, LLC, Common Equity | (f)(o)(q)(s) | Upstream | 148,692,909 | 44,700 | 34,051 | |||||||||||||||||||||||||||||||||||||||||||||
Cimarron Energy Holdco Inc., Common Equity | (f)(o)(s) | Service & Equipment | 4,302,293 | 3,950 | — | |||||||||||||||||||||||||||||||||||||||||||||
Cimarron Energy Holdco Inc., Participation Option | (f)(o)(s) | Service & Equipment | 25,000,000 | 1,289 | — | |||||||||||||||||||||||||||||||||||||||||||||
Great Western Petroleum, LLC, Common Equity | (f)(o)(r)(s)(w) | Upstream | 105,785 | 30,790 | 40,731 | |||||||||||||||||||||||||||||||||||||||||||||
Harvest Oil & Gas Corp., Common Equity | (f)(o)(w) | Upstream | 135,062 | 15,802 | 2,836 | |||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Energy, LLC, Class A Units | (f)(o)(s)(w) | Midstream | 50,494,585 | 19,663 | 6,046 | |||||||||||||||||||||||||||||||||||||||||||||
Maverick Natural Resources, LLC, Common Equity | (f)(g)(n)(o)(s) | Upstream | 503,176 | 138,208 | 278,760 | |||||||||||||||||||||||||||||||||||||||||||||
MB Precision Investment Holdings LLC, Class A-2 Units | (f)(n)(o)(s) | Industrials | 1,426,110 | 490 | — | |||||||||||||||||||||||||||||||||||||||||||||
MECO IV Holdco, LLC, Class A-1 Units | (f)(n)(o)(s)(x) | Upstream | 1,225,000 | 2,161 | 4,181 | |||||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Par) | (f)(k)(o)(s) | Midstream | 2,187,500 | 3,083 | 265 | |||||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Premium) | (f)(k)(o)(s) | Midstream | 3,125,000 | 2,623 | 280 | |||||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Premium) | (f)(k)(o)(s) | Midstream | 781,250 | 576 | 69 | |||||||||||||||||||||||||||||||||||||||||||||
NGL Energy Partners, LP, Warrants (Par) | (f)(k)(o)(s) | Midstream | 546,880 | 630 | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Permian Production Holdings, LLC, Common Equity | (f)(n)(o)(s)(w) | Upstream | 1,961,896 | 1 | 8,829 | |||||||||||||||||||||||||||||||||||||||||||||
Ranger Oil Corp., Common Equity | (f)(o) | Upstream | 332,863 | 1,795 | 8,961 | |||||||||||||||||||||||||||||||||||||||||||||
Ridgeback Resources Inc., Common Equity | (f)(k)(o)(s)(t)(w) | Upstream | 9,599,928 | 58,985 | 48,356 | |||||||||||||||||||||||||||||||||||||||||||||
Swift Worldwide Resources Holdco Limited, Common Equity | (f)(k)(o)(s)(u) | Service & Equipment | 3,750,000 | 6,029 | 3,206 | |||||||||||||||||||||||||||||||||||||||||||||
USA Compression Partners, LP, Warrants (Market) | (f)(k)(o)(s) | Midstream | 793,359 | 555 | 2,209 | |||||||||||||||||||||||||||||||||||||||||||||
USA Compression Partners, LP, Warrants (Premium) | (f)(k)(o)(s) | Midstream | 1,586,719 | 714 | 3,499 | |||||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc., Common Equity | (f)(o)(s)(x) | Upstream | 4,415,749 | 20,754 | 25,854 | |||||||||||||||||||||||||||||||||||||||||||||
Total Equity/Other | 364,272 | 472,033 | ||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS—149.5% | $ | 2,353,075 | $ | 2,395,223 | ||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS—(49.5%) | (792,900) | |||||||||||||||||||||||||||||||||||||||||||||||||
NET ASSETS—100.0% | $ | 1,602,323 |
(continued)
2021
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(continued)
2021
Portfolio Company | Fair Value at December 31, 2019 | Purchases, Paid -in-Kind Interest and Transfers In | Sales, Repayments and Transfers Out | Accretion of Discount | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2020 | Interest Income(1) | PIK Income(1) | |||||||||||||||||||||||||||
Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||
BL Sand Hills Unit, L.P. | $ | 288 | $ | — | $ | (223 | ) | $ | — | $ | (16,451 | ) | $ | 16,386 | $ | — | $ | — | $ | — | ||||||||||||||||
MB Precision Holdings LLC | 4,585 | 157 | (3,949 | ) | 48 | (748 | ) | (93 | ) | — | 305 | 157 | ||||||||||||||||||||||||
Permian Production Holdings, LLC | — | 11,450 | — | 48 | — | (52 | ) | 11,446 | 262 | 23 | ||||||||||||||||||||||||||
Warren Resources, Inc. | 27,507 | 281 | — | — | — | — | 27,788 | 2,915 | 280 | |||||||||||||||||||||||||||
Senior Secured Loans—Second Lien | ||||||||||||||||||||||||||||||||||||
Titan Energy Operating, LLC | — | — | (600 | ) | — | (100,302 | ) | 100,902 | — | — | — | |||||||||||||||||||||||||
Senior Secured Bonds | ||||||||||||||||||||||||||||||||||||
FourPoint Energy, LLC | 223,369 | — | (135,635 | ) | 636 | (96,598 | ) | 8,228 | — | 5,647 | — | |||||||||||||||||||||||||
Limetree Bay Ventures, LLC | — | 25,562 | — | — | — | (24 | ) | 25,538 | — | 2,700 | ||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | — | 33,813 | — | 326 | — | 2,169 | 36,308 | 326 | 1,790 | |||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | — | 16,381 | — | — | — | 73,587 | 89,968 | — | — | |||||||||||||||||||||||||||
Unsecured Debt | ||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | — | 37,814 | — | — | — | (37,814 | ) | — | — | 3,068 | ||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | — | 9,892 | — | — | — | (9,892 | ) | — | — | 1,045 | ||||||||||||||||||||||||||
Preferred Equity | ||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC, Preferred Equity | — | 86,105 | — | 624 | — | (86,729 | ) | — | 689 | 1,950 | ||||||||||||||||||||||||||
Limetree Bay Ventures, LLC, Preferred Equity | — | 53,548 | — | — | — | (53,548 | ) | — | — | 986 | ||||||||||||||||||||||||||
MB Precision Investment Holdings LLC, Class A Preferred Units | 1,205 | — | — | — | (1,880 | ) | 675 | — | — | — | ||||||||||||||||||||||||||
Equity/Other | ||||||||||||||||||||||||||||||||||||
BL Sand Hills Unit, L.P., Net Profits Interest | — | — | (60 | ) | — | (5,120 | ) | 5,180 | — | — | — | |||||||||||||||||||||||||
BL Sand Hills Unit, L.P., Overriding Royalty Interest | — | — | (8 | ) | — | (732 | ) | 740 | — | — | — | |||||||||||||||||||||||||
BL Sand Hills Unit, L.P., Series A Units | — | — | — | — | (24,019 | ) | 24,019 | — | — | — | ||||||||||||||||||||||||||
FourPoint Energy, LLC, Common Equity, Class C-II-A Units | 6,906 | — | (376 | ) | — | (65,624 | ) | 59,094 | — | — | — | |||||||||||||||||||||||||
FourPoint Energy, LLC, Common Equity, Class D Units | 1,307 | — | (70 | ) | — | (8,106 | ) | 6,869 | — | — | — | |||||||||||||||||||||||||
FourPoint Energy, LLC, Common Equity, Class E-II Units | 15,793 | — | (859 | ) | — | (36,875 | ) | 21,941 | — | — | — | |||||||||||||||||||||||||
FourPoint Energy, LLC, Common Equity, Class E-III Units | 23,306 | — | (1,268 | ) | — | (54,420 | ) | 32,382 | — | — | — | |||||||||||||||||||||||||
Harvest Oil & Gas Corp., Common Equity | 8,644 | — | (2,701 | ) | — | — | (3,149 | ) | 2,794 | — | — | |||||||||||||||||||||||||
Limetree Bay Ventures, LLC, Common Equity | — | 3,406 | — | — | — | (3,406 | ) | — | — | — | ||||||||||||||||||||||||||
Lonestar Resources US Inc., Common Equity | — | 2,376 | — | — | — | 216 | 2,592 | — | — | |||||||||||||||||||||||||||
MB Precision Investment Holdings LLC, Class A-2 Units | — | — | (490 | ) | — | — | 490 | — | — | — | ||||||||||||||||||||||||||
Permian Production Holdings, LLC, Common Equity | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Ridgeback Resources Inc., Common Equity | $ | 50,721 | $ | — | $ | — | $ | — | $ | — | $ | (12,336 | ) | $ | 38,385 | $ | — | $ | — | |||||||||||||||||
Titan Energy, LLC, Common Equity | 16 | — | — | — | (17,554 | ) | 17,538 | — | — | — | ||||||||||||||||||||||||||
Warren Resources, Inc., Common Equity | 10,951 | — | — | — | — | (6,491 | ) | 4,460 | — | — | ||||||||||||||||||||||||||
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$ | 374,598 | $ | 280,785 | $ | (146,239 | ) | $ | 1,682 | $ | (428,429 | ) | $ | 156,882 | $ | 239,279 | $ | 10,144 | $ | 11,999 | |||||||||||||||||
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Portfolio Company | Fair Value at December 31, 2020 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2021 | Interest Income(3) | PIK Income(3) | Dividend Income(3) | |||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Energy, LLC | $ | — | $ | 14,343 | $ | — | $ | — | $ | (11,177) | $ | 3,166 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Permian Production Holdings, LLC | 11,446 | 489 | (6,401) | 1,106 | 1,249 | 7,889 | 1,009 | 215 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc.(4) | 27,788 | 69 | (27,857) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Bonds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Great Western Petroleum, LLC | — | 53,913 | — | — | 4,142 | 58,055 | 5,861 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | 25,538 | — | (3,810) | (21,752) | 24 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | 36,308 | 19 | (5,137) | (29,021) | (2,169) | — | 19 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | 89,968 | 43,291 | (9,889) | (49,783) | (73,587) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | — | — | (6,298) | (31,516) | 37,814 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC | — | — | (1,648) | (8,244) | 9,892 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC, Preferred Equity | — | — | — | (53,548) | 53,548 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC, Preferred Equity | — | — | — | (86,729) | 86,729 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Great Western Petroleum, LLC, Common Equity | — | 30,790 | — | — | 9,941 | 40,731 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Harvest Oil & Gas Corp., Common Equity | 2,794 | — | (1,756) | — | 1,798 | 2,836 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Energy, LLC, Class A Units | — | 19,663 | — | — | (13,617) | 6,046 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Limetree Bay Ventures, LLC, Common Equity | — | — | — | (3,406) | 3,406 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Lonestar Resources US Inc., Common Equity | 2,592 | — | (2,376) | — | (216) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Permian Production Holdings, LLC, Common Equity | — | 1 | — | — | 8,828 | 8,829 | — | — | 1,574 | |||||||||||||||||||||||||||||||||||||||||||||||
Ridgeback Resources Inc., Common Equity | 38,385 | — | — | — | 9,971 | 48,356 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc., Common Equity(4) | 4,460 | — | (20,754) | — | 16,294 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 239,279 | $ | 162,578 | $ | (85,926) | $ | (282,893) | $ | 142,870 | $ | 175,908 | $ | 6,889 | $ | 215 | $ | 1,574 |
(continued)
2021
| ||||||||||||||
Portfolio Company | Fair Value at December 31, 2019 | Purchases, Paid-in-Kind Interest and Transfers In | Sales, Repayments and Transfers Out | Accretion of Discount | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2020 | Interest Income(1) | ||||||||||||||||||||||||
Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC | $ | — | $ | 53,007 | $ | — | $ | — | $ | — | $ | — | $ | 53,007 | $ | 2,886 | ||||||||||||||||
Lusk Operating LLC | — | — | — | — | (27,464 | ) | 27,464 | — | — | |||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | ||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | — | 60,603 | — | — | — | 1,213 | 61,816 | — | ||||||||||||||||||||||||
Equity/Other | ||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Common Equity | — | 1,527 | — | — | — | 377 | 1,904 | — | ||||||||||||||||||||||||
Allied Wireline Services, LLC, Warrants | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Lusk Operating LLC, Common Equity | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
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$ | — | $ | 115,137 | $ | — | $ | — | $ | (27,464 | ) | $ | 29,054 | $ | 116,727 | $ | 2,886 | ||||||||||||||||
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Portfolio Company | Fair Value at December 31, 2020 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2021 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allied Downhole Technologies, LLC | $ | — | $ | 10,282 | $ | (2,500) | $ | — | $ | — | $ | 7,782 | $ | 2 | $ | 282 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC | 53,007 | 5,280 | (207) | — | (11,741) | 46,339 | 276 | 5,280 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
MECO IV Holdco, LLC | — | 22,745 | — | — | — | 22,745 | 91 | 951 | 9 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc.(4) | — | 27,134 | (3,446) | — | — | 23,688 | 2,601 | 261 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | 61,816 | — | (6,089) | — | (4,957) | 50,770 | — | — | — | 5,729 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Common Equity | 1,904 | — | — | — | (1,904) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allied Wireline Services, LLC, Warrants | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
MECO IV Holdco, LLC, Class A-1 Units | — | 2,161 | — | — | 2,020 | 4,181 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Warren Resources, Inc., Common Equity(4) | — | 20,754 | — | — | 5,100 | 25,854 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 116,727 | $ | 88,356 | $ | (12,242) | $ | — | $ | (11,482) | $ | 181,359 | $ | 2,970 | $ | 6,774 | $ | 9 | $ | 5,729 |
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 2. Summary of Significant Accounting Policies (Continued)
follows the accounting and reporting guidance applicable to investment companies under Accounting Standards Codification Topic 946, Financial Services—Investment Companies. The Company has evaluated the impact of subsequent events through the date the unaudited consolidated financial statements were issued and filed with the Securities and Exchange Commission, or the SEC.
2022.
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 2. Summary of Significant Accounting Policies (Continued)
dividend income on the ex-dividend date. Distributions received from limited liability company, or LLC, and limited partnership, or LP, investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. The Company does not accrue as a receivable interest or dividends on loans and securities if it has reason to doubt its ability to collect such income. The Company’s policy is to place investments on non-accrual status when there is reasonable doubt that interest income will be collected. The Company considers many factors relevant to an investment when placing it on or removing it from non-accrual status including, but not limited to, the delinquency status of the investment, economic and business conditions, the overall financial condition of the underlying investment, the value of the underlying collateral, bankruptcy status, if any, and any other facts or circumstances relevant to the investment. If there is reasonable doubt that the Company will receive any previously accrued interest, then the accrued interest income will be written-off. Payments received on non-accrual investments may be recognized as income or applied to principal depending upon the collectability of the remaining principal and interest. Non-accrual investments may be restored to accrual status when principal and interest become current and are likely to remain current based on the Company’s judgment.
Nine Months Ended September 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Reinvestment of Distributions | 4,608,920 | $ | 15,880 | 4,793,767 | $ | 20,871 | ||||||||||
Share Repurchase Program | — | — | (4,877,069 | ) | (26,823 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Proceeds from Share Transactions | 4,608,920 | $ | 15,880 | (83,302 | ) | $ | (5,952 | ) | ||||||||
|
|
|
|
|
|
|
|
2021:
Six Months Ended June 30, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Reinvestment of Distributions | 2,741,168 | $ | 10,460 | 3,105,572 | $ | 10,618 | ||||||||||||||||||||
Proceeds from Share Transactions | 2,741,168 | $ | 10,460 | 3,105,572 | $ | 10,618 |
$4.00.
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 3. Share Transactions (Continued)
repurchase program and will reassess the Company’s ability to recommence such program in future periods. The Company’s board of trustees determined to terminate the Company’s previously announced quarterly tender offer pursuant to its share repurchase program, or Tender Offer, that it made pursuant to the Tender Offer Statement on Schedule TO originally filed with the SEC on February 24, 2020. As a result of this termination, no common shares were purchased in the Tender Offer and all common shares previously tendered and not withdrawn were promptly returned to tendering holders.
• the effect of such repurchases on the Company’s qualification as a RIC (including the consequences of any necessary asset sales);
• the liquidity of the Company’sCompany's assets (including fees and costs associated with disposing of assets);
• the Company’s investment plans and working capital requirements;
• the relative economies of scale with respect to the Company’s size;
• the Company’s history in repurchasing common shares or portions thereof; and
• the condition of the securities markets.
(continued)
(continued)
The Company did not repurchase any shares pursuant to its share repurchase program during the ninesix months ended SeptemberJune 30, 2022 and 2021. The following table provides information concerning the Company’s repurchases of common shares pursuant to its share repurchase program during the nine months ended September 30, 2020:
For the Three Months | Repurchase Date | Shares Repurchased | Percentage of Shares Tendered That Were Repurchased | Percentage of Outstanding Shares Repurchased as of the Repurchase Date | Repurchase Price Per Share | Aggregate Consideration for Repurchased Shares | ||||||||||||||||||
Fiscal 2020 | ||||||||||||||||||||||||
December 31, 2019 | January 8, 2020 | 4,354,073 | 9 | % | 0.99 | % | $ | 5.50 | $ | 23,947 |
For the Three Months Ended | Repurchase Date | Shares Repurchased | Percentage of Outstanding Shares Repurchased as of the Repurchase Date | Repurchase Price Per Share | Aggregate Consideration for Repurchased Shares | |||||||||||||||
Fiscal 2020 | ||||||||||||||||||||
December 31, 2019 | January 17, 2020 | 522,996 | 0.12 | % | $ | 5.50 | $ | 2,876 |
FS Energy2022 and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 4. Related Party Transactions (Continued)
such as time allocations and other reasonable metrics. The Company’s board of trustees reviews the methodology employed in determining how the expenses are allocated to the Company and assesses the reasonableness of such reimbursements for expenses allocated to the Company based on the breadth, depth and quality of such services as compared to the estimated cost to the Company of obtaining similar services from third-party providers known to be available. In addition, the Company’s board of trustees considers whether any single third-party service provider would be capable of providing all such services at comparable cost and quality. Finally, the Company’s board of trustees, among other things, compares the total amount paid to FS/EIG Advisor for such services as a percentage of the Company’s net assets to the same ratio as
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
Related Party | Source Agreement | Description | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
FS/EIG Advisor | FS/EIG investment advisory agreement | Base Management Fee(1) | $ | 9,576 | $ | 9,957 | $ | 19,613 | $ | 20,605 | ||||||||||||||||||||||||||||
FS/EIG Advisor | FS/EIG investment advisory agreement | Administrative Services Expenses(2) | $ | 1,490 | $ | 1,442 | $ | 2,910 | $ | 3,023 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
Related Party | Source Agreement | Description | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
FS/EIG Advisor | FS/EIG investment advisory agreement | Base Management Fee(1) | $ | 9,051 | $ | 10,624 | $ | 29,656 | $ | 38,167 | ||||||||||
FS/EIG Advisor | FS/EIG investment advisory agreement | Administrative Services Expenses(2) | $ | 1,457 | $ | 2,628 | $ | 4,480 | $ | 4,937 |
|
|
$20,804, respectively, in base management fees were paid to
FS/EIG Advisor. The base management fee amount shown in the table above is shown net of $1,700 and $321 in structuring, upfront or certain other fees received by FS/EIG Advisor or its members and offset against base management fees for the three months ended June 30, 2022 and 2021, respectively, and $2,398 and $323 in structuring, upfront or certain other fees received by FS/EIG Advisor or its members and offset against base management fees for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, $9,576 in base management fees were payable to FS/EIG Advisor.FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 4. Related Party Transactions (Continued)
overlap with the investment objectives of such investment funds, accounts or other investment vehicles. For additional information regarding potential conflicts of interest, see the Company’s annual report on Form 10-K for the year ended December 31, 2020.
2021.
Distribution | ||||||||
For the Three Months Ended | Per Share | Amount | ||||||
Fiscal 2020 | ||||||||
March 31, 2020 | $ | 0.0833 | $ | 36,207 | ||||
June 30, 2020 | 0.0300 | 13,098 | ||||||
September 30, 2020 | 0.0300 | 13,163 | ||||||
|
|
|
| |||||
Total | $ | 0.1433 | $ | 62,468 | ||||
|
|
|
| |||||
Fiscal 2021 | ||||||||
March 31, 2021 | $ | 0.0300 | $ | 13,249 | ||||
June 30, 2021 | 0.0300 | 13,294 | ||||||
September 30, 2021 | 0.0300 | 13,339 | ||||||
|
|
|
| |||||
Total | $ | 0.0900 | $ | 39,882 | ||||
|
|
|
|
2021:
Distribution | ||||||||||||||
For the Three Months Ended | Per Share | Amount | ||||||||||||
Fiscal 2021 | ||||||||||||||
March 31, 2021 | $ | 0.03 | $ | 13,249 | ||||||||||
June 30, 2021 | 0.03 | 13,294 | ||||||||||||
Total | $ | 0.06 | $ | 26,543 | ||||||||||
Fiscal 2022 | ||||||||||||||
March 31, 2022 | $ | 0.03 | $ | 13,426 | ||||||||||
June 30, 2022 | 0.03 | 13,465 | ||||||||||||
Total | $ | 0.06 | $ | 26,891 |
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 5. Distributions (Continued)
distributions to shareholders are subject to applicable legal restrictions and the sole discretion of the Company’s board of trustees. Furthermore, the JPMorgan Facility restricts the ability of the Company to make certain discretionary cash dividends and distributions and other restricted payments. See Note 9 for a discussion of the JPMorgan Facility.
Six Months Ended June 30, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
Source of Distribution | Distribution Amount | Percentage | Distribution Amount | Percentage | ||||||||||||||||||||||
Net investment income(1) | $ | 26,891 | 100 | % | $ | 26,543 | 100 | % | ||||||||||||||||||
Short-term capital gains proceeds from the sale of assets | — | — | — | — | ||||||||||||||||||||||
Long-term capital gains proceeds from the sale of assets | — | — | — | — | ||||||||||||||||||||||
Total | $ | 26,891 | 100 | % | $ | 26,543 | 100 | % |
Nine Months Ended September 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
Source of Distribution | Distribution Amount | Percentage | Distribution Amount | Percentage | ||||||||||||
Net investment income(1) | $ | 39,882 | 100 | % | $ | 62,468 | 100 | % | ||||||||
Short-term capital gains proceeds from the sale of assets | — | — | — | — | ||||||||||||
Long-term capital gains proceeds from the sale of assets | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 39,882 | 100 | % | $ | 62,468 | 100 | % | ||||||||
|
|
|
|
|
|
|
|
In the past, the |
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 5. Distributions (Continued)
The Company has in the pastexperienced restructurings and defaults and may experience additional restructurings or defaultssuch events again in the future. Any restructuring or default may have an impact on the level of income received by the Company.
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 6. Financial Instruments (Continued)
the NYMEX West Texas Intermediate, or NYMEX WTI,ICE Brent for oil. Gas volumes are measured in one million British thermal units, or MMBtus, and oil volumes are measured in barrels, or Bbls.
Year | Location | Bbls | Weighted Average Price ($/Bbls) | |||||||||||||||||
2022 | ICE Brent | 87,447 | $87.22 | |||||||||||||||||
2023 | ICE Brent | 168,511 | $80.00 |
Year | Location | MMBtu | Weighted Average Price ($/MMBtu) | |||||||||||||||||
2022 | NYMEX Henry Hub | 149,132 | $4.58 | |||||||||||||||||
2023 | NYMEX Henry Hub | 343,702 | $3.80 |
Instrument | Asset(1) | Liability(2) | ||||||||||||
Swap Contracts—Crude Oil | $ | — | $ | (3,156) | ||||||||||
Swap Contracts—Natural Gas | — | (432) | ||||||||||||
Total | $ | — | $ | (3,588) |
In addition, the Company entered into oil basis swap positions, which settled on the pricing index to basis differential of Argus Light Louisiana Sweet Crude Oil, or Argus LLS, to NYMEX WTI. As of September 30, 2021, the Company did not have any oil basis swap positions for Argus LLS.
contracts. The effect of swap contracts (which are not considered to be hedging instruments for accounting disclosure purposes) on the Company’sCompany's statements of operations for the ninesix months ended SeptemberJune 30, 2020 were2022 was as follows:
Instrument | Realized Gain (Loss) on Derivatives Recognized in Income(1) | Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income(2) | ||||||
Swap Contracts—Crude Oil | $ | 19,313 | $ | (5,982 | ) | |||
Swap Contracts—Natural Gas | 937 | (569 | ) | |||||
|
|
|
| |||||
Total | $ | 20,250 | $ | (6,551 | ) | |||
|
|
|
|
Instrument | Realized Gain (Loss) on Derivatives Recognized in Income(1) | Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income(2) | ||||||||||||
Swap Contracts—Crude Oil | $ | (1,502) | $ | (3,156) | ||||||||||
Swap Contracts—Natural Gas | (306) | (432) | ||||||||||||
Total | $ | (1,808) | $ | (3,588) |
Counterparty | Derivative Assets | Derivative Liabilities | Net Value of Derivatives | Non-Cash Collateral (Received) Pledged(1) | Cash Collateral (Received) Pledged(1) | Net Amount of Derivative Assets (Liabilities)(2) | ||||||||||||||||||||||||||||||||
BP Energy Co. | — | $ | (3,588) | $ | (3,588) | — | — | $ | (3,588) |
| ||||||||||||||
|
September 30, 2021 (Unaudited) | December 31, 2020 | |||||||||||||||||||||||
Amortized Cost(1) | Fair Value | Percentage of Portfolio | Amortized Cost(1) | Fair Value | Percentage of Portfolio | |||||||||||||||||||
Senior Secured Loans—First Lien | $ | 741,484 | $ | 723,390 | 32 | % | $ | 649,708 | $ | 607,338 | 28 | % | ||||||||||||
Senior Secured Loans—Second Lien | 99,056 | 100,085 | 4 | % | 277,018 | 276,312 | 13 | % | ||||||||||||||||
Senior Secured Bonds | 75,059 | 77,232 | 3 | % | 286,082 | 340,042 | 16 | % | ||||||||||||||||
Unsecured Debt | 438,003 | 404,315 | 18 | % | 245,180 | 134,560 | 6 | % | ||||||||||||||||
Preferred Equity | 500,056 | 486,138 | 21 | % | 689,253 | 471,077 | 22 | % | ||||||||||||||||
Sustainable Infrastructure Investments, LLC | 54,514 | 54,430 | 2 | % | 60,603 | 61,816 | 3 | % | ||||||||||||||||
Equity/Other | 382,490 | 460,116 | 20 | % | 367,561 | 290,331 | 12 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 2,290,662 | $ | 2,305,706 | 100 | % | $ | 2,575,405 | $ | 2,181,476 | 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2021:
June 30, 2022 (Unaudited) | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Amortized Cost(1) | Fair Value | Percentage of Portfolio | Amortized Cost(1) | Fair Value | Percentage of Portfolio | |||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | $ | 770,769 | $ | 762,753 | 31 | % | $ | 832,257 | $ | 812,335 | 34 | % | ||||||||||||||||||||||||||
Senior Secured Loans—Second Lien | 176,003 | 177,184 | 7 | % | 83,322 | 84,083 | 3 | % | ||||||||||||||||||||||||||||||
Senior Secured Bonds | 10,040 | 10,356 | 0 | % | 77,266 | 81,646 | 3 | % | ||||||||||||||||||||||||||||||
Unsecured Debt | 389,039 | 359,450 | 15 | % | 425,715 | 397,068 | 17 | % | ||||||||||||||||||||||||||||||
Preferred Equity | 497,019 | 475,077 | 20 | % | 515,711 | 497,288 | 21 | % | ||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | 54,514 | 52,131 | 2 | % | 54,514 | 50,770 | 2 | % | ||||||||||||||||||||||||||||||
Equity/Other | 340,584 | 594,385 | 25 | % | 364,272 | 472,033 | 20 | % | ||||||||||||||||||||||||||||||
Total | $ | 2,237,968 | $ | 2,431,336 | 100 | % | $ | 2,353,057 | $ | 2,395,223 | 100 | % |
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 7. Investment Portfolio (Continued)
policies of a portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities.
2021 in this quarterly report on Form 10-Q.
During the nine months ended September 30, 2021, the Company’s debt and equity investments in Limetree Bay Ventures, LLC and Limetree Energy, LLC, or collectively Limetree, resulted in realized and unrealized losses of approximately $192,110. The losses are a result of a write-down of such investments due to the shut-down of Limetree’s refinery operations as a result of regulatory, operational and financial challenges. In July 2021, Limetree filed for bankruptcy. There is a substantial risk that no new cash flows will accrue to our investments in Limetree.
September 30, 2021 (Unaudited) | December 31, 2020 | |||||||||||||||
Industry Classification | Fair Value | Percentage of Portfolio | Fair Value | Percentage of Portfolio | ||||||||||||
Upstream | $ | 1,093,030 | 47 | % | $ | 1,080,577 | 50 | % | ||||||||
Midstream | 899,641 | 39 | % | 763,275 | 34 | % | ||||||||||
Power | 177,751 | 8 | % | 131,356 | 6 | % | ||||||||||
Service & Equipment | 67,740 | 3 | % | 131,571 | 6 | % | ||||||||||
Industrials | 13,114 | 1 | % | 12,881 | 1 | % | ||||||||||
Sustainable Infrastructure Investments, LLC(1) | 54,430 | 2 | % | 61,816 | 3 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,305,706 | 100 | % | $ | 2,181,476 | 100 | % | ||||||||
|
|
|
|
|
|
|
|
|
June 30, 2022 (Unaudited) | December 31, 2021 | |||||||||||||||||||||||||
Industry Classification | Fair Value | Percentage of Portfolio | Fair Value | Percentage of Portfolio | ||||||||||||||||||||||
Upstream | $ | 1,109,498 | 46 | % | $ | 1,071,201 | 44 | % | ||||||||||||||||||
Midstream | 803,565 | 33 | % | 893,004 | 37 | % | ||||||||||||||||||||
Power | 380,644 | 16 | % | 302,510 | 13 | % | ||||||||||||||||||||
Service & Equipment | 76,045 | 3 | % | 65,534 | 3 | % | ||||||||||||||||||||
Industrials | 9,453 | 0 | % | 12,204 | 1 | % | ||||||||||||||||||||
Sustainable Infrastructure Investments, LLC(1) | 52,131 | 2 | % | 50,770 | 2 | % | ||||||||||||||||||||
Total | $ | 2,431,336 | 100 | % | $ | 2,395,223 | 100 | % |
_____________________
(continued)
(continued)
$252,351.
September 30, 2021 (Unaudited) | December 31, 2020 | |||||||
Total investments(1) | $ | 380,089 | $ | 442,916 | ||||
Weighted average current interest rate on debt investments(2) | 2.12 | % | 2.24 | % | ||||
Number of portfolio assets in SIIJV | 12 | 14 | ||||||
Largest investment in a single portfolio company(1) | $ | 82,228 | $ | 84,914 |
|
|
June 30, 2022
(Unaudited)December 31, 2021 $ 293,718 $ 316,422 4.57 % 3.34 % Number of portfolio assets in SIIJV 10 11 $ 76,689 $ 79,521
(continued)
(continued)
Portfolio Company(a)(f) | Footnotes | Industry | Rate(b) | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | |||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien—100% | ||||||||||||||||||||||||||||||||||||||||||||
AES DE Holdings V, LLC | Renewables | L+175 | 6/13/26 | $ | 12,702 | $ | 12,702 | $ | 12,490 | |||||||||||||||||||||||||||||||||||
Alianca Transportadora de Gas Participacoes S.A. | Midstream | L+260 | 5/23/27 | 76,689 | 76,689 | 76,864 | ||||||||||||||||||||||||||||||||||||||
Blue Heron Intermediate Holdco I, LLC | Midstream | L+188 | 4/22/24 | 32,359 | 32,359 | 32,407 | ||||||||||||||||||||||||||||||||||||||
Cedar Creek II LLC | Renewables | L+188 | 11/18/23 | 9,083 | 9,083 | 9,133 | ||||||||||||||||||||||||||||||||||||||
Copper Mountain Solar 3, LLC | Renewables | L+175 | 5/29/25 | 18,499 | 18,499 | 18,684 | ||||||||||||||||||||||||||||||||||||||
FLNG Liquefaction 2, LLC | Midstream | L+150 | 12/31/26 | 28,951 | 28,951 | 28,965 | ||||||||||||||||||||||||||||||||||||||
Meikle Wind Energy, LP | (e) | Renewables | C+150 | 5/12/24 | C$ | 16,266 | 12,514 | 12,748 | ||||||||||||||||||||||||||||||||||||
NES Hercules Class B Member, LLC | Renewables | L+150 | 1/31/28 | $ | 24,624 | 24,624 | 25,006 | |||||||||||||||||||||||||||||||||||||
ST EIP Holdco LLC | Midstream | L+250 | 11/5/24 | 59,400 | 59,400 | 58,651 | ||||||||||||||||||||||||||||||||||||||
Top of the World Wind Energy LLC | Renewables | L+188 | 12/2/28 | 18,897 | 18,897 | 19,093 | ||||||||||||||||||||||||||||||||||||||
Total Senior Secured Loans—First Lien | 293,718 | 294,041 | ||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS—100% | $ | 293,718 | $ | 294,041 |
(Unaudited)
Portfolio Company(a)(f) | Footnotes | Industry | Rate(b) | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | |||||||||||||||||||||
Senior Secured Loans—First | ||||||||||||||||||||||||||||
AES DE Holdings V, LLC | Renewables | L+175 | 6/13/26 | $ | 14,945 | $ | 14,945 | $ | 14,242 | |||||||||||||||||||
Alianca Transportadora de Gas Participacoes S.A. | Midstream | L+260 | 5/23/27 | 82,228 | 82,228 | 82,797 | ||||||||||||||||||||||
Astoria Energy II LLC | Power | L+150 | 8/31/24 | 56,426 | 56,426 | 57,079 | ||||||||||||||||||||||
Blue Heron Intermediate Holdco I, LLC | Midstream | L+175 | 4/22/24 | 33,136 | 33,136 | 33,362 | ||||||||||||||||||||||
Cedar Creek II LLC | Renewables | L+188 | 11/18/23 | 9,894 | 9,894 | 10,016 | ||||||||||||||||||||||
Copper Mountain Solar 3, LLC | Renewables | L+175 | 5/29/25 | 19,868 | 19,868 | 20,107 | ||||||||||||||||||||||
FLNG Liquefaction 2, LLC | Midstream | L+150 | 12/31/26 | 30,175 | 30,175 | 30,386 | ||||||||||||||||||||||
Meikle Wind Energy, LP | (e) | Renewables | C+150 | 5/29/24 | C$ | 16,945 | 13,036 | 13,751 | ||||||||||||||||||||
NES Hercules Class B Member, LLC | Renewables | L+150 | 12/15/27 | $ | 24,777 | 24,777 | 25,490 | |||||||||||||||||||||
ST EIP Holdco LLC | Midstream | L+250 | 11/5/24 | 60,000 | 60,000 | 60,144 | ||||||||||||||||||||||
Top of the World Wind Energy LLC | Renewables | L+188 | 12/2/28 | 21,987 | 21,987 | 22,165 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Senior Secured Loans—First Lien | 366,472 | 369,539 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Unsecured Debt—3.6% | ||||||||||||||||||||||||||||
Sociedad Minera Cerro Verde S.A.A. | Power | L+190 | 6/19/22 | 13,617 | 13,617 | 13,637 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Unsecured Debt | 13,617 | 13,637 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL INVESTMENTS—100.0% | $ | 380,089 | $ | 383,176 | ||||||||||||||||||||||||
|
|
|
|
Portfolio Company(a)(f) | Footnotes | Industry | Rate(b) | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | |||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien—95.7% | ||||||||||||||||||||||||||||||||||||||||||||
AES DE Holdings V, LLC | Renewables | L+175 | 6/13/26 | $ | 12,720 | $ | 12,720 | $ | 12,166 | |||||||||||||||||||||||||||||||||||
Alianca Transportadora de Gas Participacoes S.A. | Midstream | L+260 | 5/23/27 | 79,521 | 79,521 | 80,498 | ||||||||||||||||||||||||||||||||||||||
Blue Heron Intermediate Holdco I, LLC | Midstream | L+175 | 4/22/24 | 32,894 | 32,894 | 33,034 | ||||||||||||||||||||||||||||||||||||||
Cedar Creek II LLC | Renewables | L+188 | 11/18/23 | 9,574 | 9,574 | 9,633 | ||||||||||||||||||||||||||||||||||||||
Copper Mountain Solar 3, LLC | Renewables | L+175 | 5/29/25 | 19,189 | 19,189 | 19,315 | ||||||||||||||||||||||||||||||||||||||
FLNG Liquefaction 2, LLC | Midstream | L+150 | 12/31/26 | 29,753 | 29,753 | 29,893 | ||||||||||||||||||||||||||||||||||||||
Meikle Wind Energy, LP | (e) | Renewables | C+150 | 5/12/24 | C$ | 16,777 | 12,907 | 13,567 | ||||||||||||||||||||||||||||||||||||
NES Hercules Class B Member, LLC | Renewables | L+150 | 1/31/28 | $ | 24,777 | 24,777 | 25,573 | |||||||||||||||||||||||||||||||||||||
ST EIP Holdco LLC | Midstream | L+250 | 11/5/24 | 60,000 | 60,000 | 60,018 | ||||||||||||||||||||||||||||||||||||||
Top of the World Wind Energy LLC | Renewables | L+188 | 12/2/28 | 21,470 | 21,470 | 21,604 | ||||||||||||||||||||||||||||||||||||||
Total Senior Secured Loans—First Lien | 302,805 | 305,301 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured Debt—4.3% | ||||||||||||||||||||||||||||||||||||||||||||
Sociedad Minera Cerro Verde S.A.A. | Power | L+190 | 6/19/22 | 13,617 | 13,617 | 13,665 | ||||||||||||||||||||||||||||||||||||||
Total Unsecured Debt | 13,617 | 13,665 | ||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS—100.0% | $ | 316,422 | $ | 318,966 |
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(a) Security may be an obligation of one or more entities affiliated with the named company.
(continued)
Sustainable Infrastructure Investments, LLC Portfolio
As of December 31, 2020
Portfolio Company(a)(g) | Footnotes | Industry | Rate(b) | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | |||||||||||||||||||||
Senior Secured Loans—First | ||||||||||||||||||||||||||||
AES DE Holdings V, LLC | Renewables | L+175 | 6/13/26 | $ | 15,442 | $ | 15,442 | $ | 14,971 | |||||||||||||||||||
Alianca Transportadora de Gas Participacoes S.A. | Midstream | L+230 | 5/23/27 | 84,914 | 84,914 | 83,790 | ||||||||||||||||||||||
Astoria Energy II LLC | Power | L+150 | 8/31/24 | 58,789 | 58,789 | 59,178 | ||||||||||||||||||||||
Blue Heron Intermediate Holdco I, LLC | Midstream | L+175 | 4/22/24 | 33,884 | 33,884 | 33,872 | ||||||||||||||||||||||
Cedar Creek II LLC | Renewables | L+188 | 11/18/23 | 10,580 | 10,580 | 10,633 | ||||||||||||||||||||||
Copper Mountain Solar 3, LLC | (f) | Renewables | L+175 | 5/29/25 | 20,539 | 20,539 | 20,698 | |||||||||||||||||||||
CPV Maryland, LLC | (f) | Power | L+425 | 3/31/22 | 12,386 | 12,386 | 12,353 | |||||||||||||||||||||
Flex Intermediate Holdco, LLC | (f) | Midstream | L+250 | 5/15/23 | 30,151 | 30,151 | 29,921 | |||||||||||||||||||||
FLNG Liquefaction 2, LLC | Midstream | L+150 | 12/31/26 | 31,330 | 31,330 | 31,165 | ||||||||||||||||||||||
Meikle Wind Energy, LP | (e)(f) | Renewables | C+150 | 5/29/24 | C$ | 17,397 | 13,382 | 13,870 | ||||||||||||||||||||
NES Hercules Class B Member, LLC | (f) | Renewables | L+125 | 12/15/27 | $ | 24,906 | 24,906 | 24,412 | ||||||||||||||||||||
ST EIP Holdco LLC | Midstream | L+250 | 11/5/24 | 60,000 | 60,000 | 59,779 | ||||||||||||||||||||||
Top of the World Wind Energy LLC | Renewables | L+188 | 12/2/28 | 24,617 | 24,617 | 24,556 | ||||||||||||||||||||||
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| |||||||||||||||||||||||||
Total Senior Secured Loans—First Lien | 420,920 | 419,198 | ||||||||||||||||||||||||||
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| |||||||||||||||||||||||||
Unsecured Debt—5.0% | ||||||||||||||||||||||||||||
Sociedad Minera Cerro Verde S.A.A. | Power | L+190 | 6/19/22 | 21,996 | 21,996 | 21,934 | ||||||||||||||||||||||
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Total Unsecured Debt | 21,996 | 21,934 | ||||||||||||||||||||||||||
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| |||||||||||||||||||||||||
TOTAL INVESTMENTS—100.0% | $ | 442,916 | $ | 441,132 | ||||||||||||||||||||||||
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Percentages are shown as a percentage of total investments.
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FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 7. Investment Portfolio (Continued)
Below is selected balance sheet information for SIIJV as of SeptemberJune 30, 20212022 and December 31, 2020:
September 30, 2021 (Unaudited) | December 31, 2020 | |||||||
Selected Balance Sheet Information | ||||||||
Total investments, at fair value | $ | 383,176 | $ | 441,132 | ||||
Cash and other assets | 13,818 | 71,809 | ||||||
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| |||||
Total assets | $ | 396,994 | $ | 512,941 | ||||
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| |||||
Debt | $ | 329,018 | $ | 439,533 | ||||
Other liabilities | 1,179 | 1,527 | ||||||
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| |||||
Total liabilities | 330,197 | 441,060 | ||||||
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| |||||
Member’s equity | $ | 66,797 | $ | 71,881 | ||||
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2021:
June 30, 2022 (Unaudited) | December 31, 2021 | |||||||||||||
Selected Balance Sheet Information | ||||||||||||||
Total investments, at fair value | $ | 294,041 | $ | 318,966 | ||||||||||
Cash and other assets | 24,833 | 67,611 | ||||||||||||
Total assets | $ | 318,874 | $ | 386,577 | ||||||||||
Debt | $ | 252,351 | $ | 318,894 | ||||||||||
Other liabilities | 1,474 | 1,464 | ||||||||||||
Total liabilities | 253,825 | 320,358 | ||||||||||||
Member's equity | $ | 65,049 | $ | 66,219 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Selected Statement of Operations Information | ||||||||||||||||
Total investment income | $ | 2,124 | $ | 3,539 | $ | 6,940 | $ | 15,493 | ||||||||
Expenses | ||||||||||||||||
Interest expense | 1,157 | 2,272 | 3,814 | 10,821 | ||||||||||||
Custodian and accounting fees | 34 | 39 | 122 | 124 | ||||||||||||
Administrative services | 43 | 39 | 133 | 100 | ||||||||||||
Professional services | 46 | 56 | 116 | 967 | ||||||||||||
Other | 3 | 11 | 23 | 31 | ||||||||||||
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| |||||||||
Total expenses | 1,283 | 2,417 | 4,208 | 12,043 | ||||||||||||
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| |||||||||
Net investment income | 841 | 1,122 | 2,732 | 3,450 | ||||||||||||
Net realized and unrealized gain (loss) | 1,217 | 11,160 | 4,829 | (4,330 | ) | |||||||||||
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| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 2,058 | $ | 12,282 | $ | 7,561 | $ | (880 | ) | |||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Selected Statement of Operations Information | ||||||||||||||||||||||||||
Total investment income | $ | 2,243 | $ | 2,312 | $ | 4,073 | $ | 4,816 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Interest expense | 1,178 | 1,299 | 2,151 | 2,657 | ||||||||||||||||||||||
Administrative services | 40 | 45 | 81 | 90 | ||||||||||||||||||||||
Custodian and accounting fees | 57 | 42 | 104 | 88 | ||||||||||||||||||||||
Professional services | 26 | 36 | 51 | 70 | ||||||||||||||||||||||
Other | — | 10 | — | 20 | ||||||||||||||||||||||
Total expenses | 1,301 | 1,432 | 2,387 | 2,925 | ||||||||||||||||||||||
Net investment income | 942 | 880 | 1,686 | 1,891 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) | (1,316) | 2,485 | (2,016) | 3,612 | ||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (374) | $ | 3,365 | $ | (330) | $ | 5,503 |
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 8. Fair Value of Financial Instruments (Continued)
would use in pricing an asset or liability developed based on the best information available in the circumstances. The Company classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting guidance:
Valuation Inputs | September 30, 2021 (Unaudited) | December 31, 2020 | ||||||
Level 1—Price quotations in active markets | $ | 14,390 | $ | 35,305 | ||||
Level 2—Significant other observable inputs | 660,798 | 192,366 | ||||||
Level 3—Significant unobservable inputs | 1,630,518 | 1,953,805 | ||||||
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| |||||
Total | $ | 2,305,706 | $ | 2,181,476 | ||||
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Valuation Inputs | June 30, 2022 (Unaudited) | December 31, 2021 | ||||||||||||
Level 1—Price quotations in active markets | $ | 2,228 | $ | 11,797 | ||||||||||
Level 2—Significant other observable inputs | 582,156 | 761,944 | ||||||||||||
Level 3—Significant unobservable inputs | 1,846,952 | 1,621,482 | ||||||||||||
Total | $ | 2,431,336 | $ | 2,395,223 |
Valuation Inputs | Assets | Liabilities | ||||||||||||
Level 1—Price quotations in active markets | $ | — | $ | — | ||||||||||
Level 2—Significant other observable inputs | — | 3,588 | ||||||||||||
Level 3—Significant unobservable inputs | — | — | ||||||||||||
Total | $ | — | $ | 3,588 |
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 8. Fair Value of Financial Instruments (Continued)
The Company periodically benchmarks the bid and ask prices it receives from the third-party pricing service and/or dealers and independent valuation firms, as applicable, against the actual prices at which the Company purchases and sells its investments. Based on the results of the benchmark analysis and the experience of the Company’s management in purchasing and selling these investments, the Company believes that these prices are reliable indicators of fair value. The valuation committee of the board of trustees, or the valuation committee, and the board of trustees reviewed and approved the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation policy.
For the Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Senior Secured Loans— First Lien | Senior Secured Loans— Second Lien | Senior Secured Bonds | Unsecured Debt | Preferred Equity | Sustainable Infrastructure Investments, LLC | Equity/ Other | Total | |||||||||||||||||||||||||
Fair value at beginning of period | $ | 482,368 | $ | 237,751 | $ | 340,042 | $ | 108,317 | $ | 471,077 | $ | 61,816 | $ | 252,434 | $ | 1,953,805 | ||||||||||||||||
Accretion of discount (amortization of premium) | 2,219 | 1,338 | 23 | 76 | 1,962 | — | 455 | 6,073 | ||||||||||||||||||||||||
Net realized gain (loss) | (8,197 | ) | 448 | (100,555 | ) | (39,319 | ) | (156,872 | ) | — | 162 | (304,333 | ) | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 9,552 | 4,282 | (53,965 | ) | 57,706 | 204,258 | (1,297 | ) | 155,052 | 375,588 | ||||||||||||||||||||||
Purchases | 54,953 | 15,000 | 53,291 | 832 | 13 | — | 52,021 | 176,110 | ||||||||||||||||||||||||
Paid-in-kind interest | 11,174 | — | — | 8,373 | 6,907 | — | — | 26,454 | ||||||||||||||||||||||||
Sales and repayments | (132,333 | ) | (158,734 | ) | (228,836 | ) | (21,582 | ) | (41,207 | ) | (6,089 | ) | (14,398 | ) | (603,179 | ) | ||||||||||||||||
Net transfers in or out of Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
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Fair value at end of period | $ | 419,736 | $ | 100,085 | $ | 10,000 | $ | 114,403 | $ | 486,138 | $ | 54,430 | $ | 445,726 | $ | 1,630,518 | ||||||||||||||||
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The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date | $ | (433 | ) | $ | 4,697 | $ | (5 | ) | $ | 9,771 | $ | 34,791 | $ | (1,297 | ) | $ | 150,206 | $ | 197,730 | |||||||||||||
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For the Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Senior Secured Loans— First Lien | Senior Secured Loans— Second Lien | Senior Secured Bonds | Unsecured Debt | Preferred Equity | Sustainable Infrastructure Investments, LLC | Equity/ Other | Total | |||||||||||||||||||||||||
Fair value at beginning of period | $ | 569,778 | $ | 533,234 | $ | 437,761 | $ | 149,300 | $ | 721,842 | $ | — | $ | 167,270 | $ | 2,579,185 | ||||||||||||||||
Accretion of discount (amortization of premium) | 1,191 | 339 | 961 | 380 | 16,652 | — | — | 19,523 | ||||||||||||||||||||||||
Net realized gain (loss) | (93,897 | ) | (288,366 | ) | (96,598 | ) | (29,277 | ) | (3,249 | ) | — | (208,453 | ) | (719,840 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 12,914 | (15,821 | ) | 293 | (11,365 | ) | (169,067 | ) | 303 | 131,109 | (51,634 | ) | ||||||||||||||||||||
Purchases | 146,433 | 8,571 | 54,832 | 112,848 | 22,717 | 60,603 | 150,956 | 556,960 | ||||||||||||||||||||||||
Paid-in-kind interest | 2,834 | — | 2,315 | 5,037 | 12,350 | — | — | 22,536 | ||||||||||||||||||||||||
Sales and repayments | (177,187 | ) | (11,386 | ) | (135,635 | ) | (69,300 | ) | (64,008 | ) | — | (4,141 | ) | (461,657 | ) | |||||||||||||||||
Net transfers in or out of Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
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Fair value at end of period | $ | 462,066 | $ | 226,571 | $ | 263,929 | $ | 157,623 | $ | 537,237 | $ | 60,906 | $ | 236,741 | $ | 1,945,073 | ||||||||||||||||
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The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date | $ | (44,442 | ) | $ | (151,941 | ) | $ | (7,935 | ) | $ | (13,016 | ) | $ | (165,752 | ) | $ | 303 | $ | (979 | ) | $ | (383,762 | ) | |||||||||
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For the Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | Senior Secured Loans—Second Lien | Senior Secured Bonds | Unsecured Debt | Preferred Equity | Sustainable Infrastructure Investments, LLC | Equity/Other | Total | |||||||||||||||||||||||||||||||||||||||||||
Fair value at beginning of period | $ | 414,075 | $ | 84,083 | $ | 10,371 | $ | 104,659 | $ | 497,288 | $ | 50,770 | $ | 460,236 | $ | 1,621,482 | ||||||||||||||||||||||||||||||||||
Accretion of discount (amortization of premium) | 1,085 | 125 | 24 | 80 | 2,662 | — | — | 3,976 | ||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) | (12,192) | 446 | — | (27,729) | 270 | — | 60,903 | 21,698 | ||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 20,588 | 420 | (39) | 34,607 | (3,519) | 1,361 | 154,688 | 208,106 | ||||||||||||||||||||||||||||||||||||||||||
Purchases | 99,677 | 110,150 | — | — | — | — | 45,835 | 255,662 | ||||||||||||||||||||||||||||||||||||||||||
Paid-in-kind interest | 7,901 | 537 | — | 3,843 | 188 | — | — | 12,469 | ||||||||||||||||||||||||||||||||||||||||||
Sales and repayments | (117,681) | (18,577) | — | (47,571) | (21,812) | — | (129,505) | (335,146) | ||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 58,705 | — | — | — | — | — | — | 58,705 | ||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Fair value at end of period | $ | 472,158 | $ | 177,184 | $ | 10,356 | $ | 67,889 | $ | 475,077 | $ | 52,131 | $ | 592,157 | $ | 1,846,952 | ||||||||||||||||||||||||||||||||||
The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date | $ | 10,826 | $ | 643 | $ | (39) | $ | (80) | $ | (3,519) | $ | 1,361 | $ | 168,303 | $ | 177,495 |
For the Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | Senior Secured Loans—Second Lien | Senior Secured Bonds | Unsecured Debt | Preferred Equity | Sustainable Infrastructure Investments, LLC | Equity/Other | Total | |||||||||||||||||||||||||||||||||||||||||||
Fair value at beginning of period | $ | 482,368 | $ | 237,751 | $ | 340,042 | $ | 108,317 | $ | 471,077 | $ | 61,816 | $ | 252,434 | $ | 1,953,805 | ||||||||||||||||||||||||||||||||||
Accretion of discount (amortization of premium) | 3,047 | 159 | 19 | 64 | 1,335 | — | 455 | 5,079 | ||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) | (9,505) | 1,185 | (100,556) | (39,319) | (156,872) | — | (3,993) | (309,060) | ||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 19,864 | 3,234 | (67,273) | 48,831 | 208,874 | (242) | 120,349 | 333,637 | ||||||||||||||||||||||||||||||||||||||||||
Purchases | 49,805 | — | 43,292 | — | 13 | — | 52,021 | 145,131 | ||||||||||||||||||||||||||||||||||||||||||
Paid-in-kind interest | 8,788 | — | — | 4,449 | 4,604 | — | — | 17,841 | ||||||||||||||||||||||||||||||||||||||||||
Sales and repayments | (121,084) | (158,102) | (18,836) | (21,581) | (41,207) | (6,089) | (1,221) | (368,120) | ||||||||||||||||||||||||||||||||||||||||||
Net transfers in or out of Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Fair value at end of period | $ | 433,283 | $ | 84,227 | $ | 196,688 | $ | 100,761 | $ | 487,824 | $ | 55,485 | $ | 420,045 | $ | 1,778,313 | ||||||||||||||||||||||||||||||||||
The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date | $ | 13,720 | $ | 4,065 | $ | 8,460 | $ | 875 | $ | 5,625 | $ | (1,970) | $ | 118,760 | $ | 149,535 |
(continued)
(continued)
Type of Investment | Fair Value at September 30, 2021 (Unaudited) | Valuation Technique(1) | Unobservable Input | Range | Weighted Average | |||||||||||
Senior Secured Loans—First Lien | $ | 385,357 | Market Comparables | Market Yield (%) | 6.3%-16.5% | 9.0 | % | |||||||||
EBITDA Multiples (x) | 3.5x-6.2x | 4.4x | ||||||||||||||
31,325 | Discounted Cash Flow | Discount Rate (%) | 10.5%-15.5% | 13.0 | % | |||||||||||
3,054 | Other(2) | Other(2) | N/A | N/A | ||||||||||||
Senior Secured Loans—Second Lien | 100,085 | Market Comparables | Market Yield (%) | 7.0%-10.5% | 8.8 | % | ||||||||||
Senior Secured Bonds | 10,000 | Market Comparables | Market Yield (%) | 7.0%-7.5% | 7.3 | % | ||||||||||
Unsecured Debt | 77,003 | Market Comparables | Market Yield (%) | 9.1%-10.1% | 9.6 | % | ||||||||||
Net Aircraft Book Value Multiple (x) | 1.0x-1.0x | 1.0x | ||||||||||||||
37,400 | Other(2) | Other(2) | N/A | N/A | ||||||||||||
Preferred Equity | 403,235 | Market Comparables | Market Yield (%) | 7.3%-24.0% | 14.9 | % | ||||||||||
EBITDA Multiples (x) | 9.0x-10.0x | 9.5x | ||||||||||||||
82,903 | Discounted Cash Flow | Discount Rate (%) | 10.0%-11.0% | 10.5 | % | |||||||||||
Sustainable Infrastructure Investments, LLC | 54,430 | Discounted Cash Flow | Discount Rate (%) | 11.5%-12.5% | 12.0 | % | ||||||||||
Equity/Other | 428,996 | Market Comparables | EBITDA Multiples (x) | 2.4x-10.5x | 5.1x | |||||||||||
Production Multiples (Mboe/d) | $32,500.0-$37,500.0 | $ | 35,000.0 | |||||||||||||
Proved Reserves Multiples (Mmboe) | 10.8x-12.3x | 11.5x | ||||||||||||||
Production Multiples (MMcfe/d) | $3,050.0-$3,550.0 | $ | 3,300.0 | |||||||||||||
Proved Reserves Multiples (Bcfe) | 0.7x-0.8x | 0.7x | ||||||||||||||
PV-10 Multiples (x) | 1.2x-4.9x | 3.0x | ||||||||||||||
3,013 | Discounted Cash Flow | Discount Rate (%) | 7.1%-31.0% | 22.4 | % | |||||||||||
7,671 | Option Valuation Model | Volatility (%) | 52.5%-65.0% | 58.0 | % | |||||||||||
6,046 | Other(2) | Other(2) | N/A | N/A | ||||||||||||
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| |||||||||||||||
Total | $ | 1,630,518 | ||||||||||||||
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Type of Investment | Fair Value at June 30, 2022 (Unaudited) | Valuation Technique(1) | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||||||||
Senior Secured Loans—First Lien | $ | 369,751 | Market Comparables | Market Yield (%) | 8.3%-19.0% | 11.3% | ||||||||||||||||||||||||||
EBITDA Multiples (x) | 4.1x-8.3x | 5.4x | ||||||||||||||||||||||||||||||
40,409 | Discounted Cash Flow | Discount Rate (%) | 11.0%-17.5% | 14.4% | ||||||||||||||||||||||||||||
61,998 | Cost | |||||||||||||||||||||||||||||||
Senior Secured Loans—Second Lien | 137,784 | Market Comparables | Market Yield (%) | 9.3%-12.8% | 10.6% | |||||||||||||||||||||||||||
39,400 | Cost | |||||||||||||||||||||||||||||||
Senior Secured Bonds | 10,356 | Market Comparables | Market Yield (%) | 6.7%-7.7% | 7.2% | |||||||||||||||||||||||||||
Unsecured Debt | 67,889 | Market Comparables | Market Yield (%) | 8.5%-9.5% | 9.0% | |||||||||||||||||||||||||||
Preferred Equity | 384,253 | Market Comparables | Market Yield (%) | 10.3%-26.5% | 16.4% | |||||||||||||||||||||||||||
EBITDA Multiples (x) | 7.8x-8.8x | 8.3x | ||||||||||||||||||||||||||||||
Net Aircraft Book Value Multiple (x) | 1.0x-1.0x | 1.0x | ||||||||||||||||||||||||||||||
90,824 | Discounted Cash Flow | Discount Rate (%) | 10.8%-11.3% | 11.0% | ||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | 52,131 | Discounted Cash Flow | Discount Rate (%) | 13.0%-13.5% | 13.3% | |||||||||||||||||||||||||||
Equity/Other | 579,848 | Market Comparables | Market Yield (%) | 9.3%-9.8% | 9.6% | |||||||||||||||||||||||||||
EBITDA Multiples (x) | 2.0x-8.8x | 5.2x | ||||||||||||||||||||||||||||||
Production Multiples (Mboe/d) | $38,000.0-$43,000.0 | $40,500.0 | ||||||||||||||||||||||||||||||
Proved Reserves Multiples (Mmboe) | 10.0x-11.5x | 10.8x | ||||||||||||||||||||||||||||||
Production Multiples (MMcfe/d) | $3,850.0-$4,150.0 | $4,000.0 | ||||||||||||||||||||||||||||||
Proved Reserves Multiples (Bcfe) | 0.8x-0.9x | 0.8x | ||||||||||||||||||||||||||||||
PV-10 Multiples (x) | 0.6x-0.9x | 0.8x | ||||||||||||||||||||||||||||||
3,625 | Discounted Cash Flow | Discount Rate (%) | 8.0%-33.0% | 21.2% | ||||||||||||||||||||||||||||
4,068 | Option Valuation Model | Volatility (%) | 37.5%-65.0% | 46.2% | ||||||||||||||||||||||||||||
4,616 | Other(2) | |||||||||||||||||||||||||||||||
Total | $ | 1,846,952 |
(continued)
Type of Investment | Fair Value at December 31, 2020 | Valuation Technique(1) | Unobservable Input | Range | Weighted Average | |||||||||||
Senior Secured Loans—First Lien | $ | 450,698 | Market Comparables | Market Yield (%) | 6.8%-26.3% | 10.4 | % | |||||||||
EBITDA Multiples (x) | 2.3x-6.7x | 4.1x | ||||||||||||||
31,670 | Discounted Cash Flow | Discount Rate (%) | 10.0%-12.5% | 11.3 | % | |||||||||||
Senior Secured Loans—Second Lien | 237,751 | Market Comparables | Market Yield (%) | 8.0%-15.3% | 9.7 | % | ||||||||||
Senior Secured Bonds | 340,042 | Market Comparables | Market Yield (%) | 8.7%-15.8% | 12.6 | % | ||||||||||
EBITDA Multiples (x) | 6.0x-8.0x | 7.0x | ||||||||||||||
Unsecured Debt | 81,442 | Market Comparables | Market Yield (%) | 9.8%-11.5% | 10.8 | % | ||||||||||
Net Aircraft Book Value Multiple (x) | 1.0x-1.0x | 1.0x | ||||||||||||||
26,875 | Other(2) | Other(2) | N/A | N/A | ||||||||||||
Preferred Equity | 5,354 | Market Comparables | EBITDA Multiples (x) | 6.0x-10.5x | 10.0x | |||||||||||
465,723 | Discounted Cash Flow | Discount Rate (%) | 7.5%-50.3% | 18.8 | % | |||||||||||
Sustainable Infrastructure Investments, LLC | 61,816 | Discounted Cash Flow | Discount Rate (%) | 10.8%-11.3% | 11.0 | % | ||||||||||
Equity/Other | 92,002 | Market Comparables | EBITDA Multiples (x) | 2.3x-10.5x | 4.6x | |||||||||||
Production Multiples (Mboe/d) | $26,500.0-$31,500.0 | $ | 29,000.0 | |||||||||||||
Proved Reserves Multiples (Mmboe) | 7.6x-9.1x | 8.4x | ||||||||||||||
Production Multiples (MMcfe/d) | $1,650.0-$3,400.0 | $ | 2,923.6 | |||||||||||||
Proved Reserves Multiples (Bcfe) | 0.4x-0.7x | 0.6x | ||||||||||||||
PV-10 Multiples (x) | 0.5x-1.6x | 1.0x | ||||||||||||||
3,695 | Discounted Cash Flow | Discount Rate (%) | 8.0%-32.0% | 24.0 | % | |||||||||||
3,877 | Option Valuation Model | Volatility (%) | 55.0%-65.0% | 60.0 | % | |||||||||||
152,860 | Other(2) | Other(2) | N/A | N/A | ||||||||||||
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| |||||||||||||||
Total | $ | 1,953,805 | ||||||||||||||
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(continued)
(1) Investments using a market quotes valuation technique were valued by using the midpoint of the prevailing bid |
|
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(ask prices from dealers on the date of the relevant period end, which were provided by an independent third-party pricing service and screened for validity by such service. For investments utilizing a market comparables valuation technique, a significant increase (decrease) in thousands, except sharethe market yield, in isolation, would result in a significantly lower (higher) fair value measurement, and per share amounts)
As of September 30, 2021 | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Arrangement(1) | Type of Arrangement | Rate(2) | Amount Outstanding | Amount Available | Maturity Date | |||||||||||||
JPMorgan Facility | Revolving/Term | L+3.00% | $ | 231,667 | $ | 140,000 | February 16, 2023 | |||||||||||
Senior Secured Notes(3) | Bond | 7.50% | 489,000 | — | August 15, 2023 | |||||||||||||
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Total | $ | 720,667 | $ | 140,000 | ||||||||||||||
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As of December 31, 2020 | ||||||||||||||||||
Arrangement(1) | Type of Arrangement | Rate(2) | Amount Outstanding | Amount Available | Maturity Date | |||||||||||||
JPMorgan Facility | Revolving/Term | L+3.00% | $ | 416,667 | $ | — | February 16, 2023 | |||||||||||
Senior Secured Notes(3) | Bond | 7.50% | 489,000 | — | August 15, 2023 | |||||||||||||
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Total | $ | 905,667 | $ | — | ||||||||||||||
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As of June 30, 2022 (Unaudited) | ||||||||||||||||||||||||||||||||
Arrangement(1) | Type of Arrangement | Rate(2) | Amount Outstanding | Amount Available | Maturity Date | |||||||||||||||||||||||||||
JPMorgan Facility | Revolving/Term | L+3.00% | $ | 305,676 | $ | — | February 16, 2023 | |||||||||||||||||||||||||
Senior Secured Notes(3) | Bond | 7.50% | 457,075 | — | August 15, 2023 | |||||||||||||||||||||||||||
Total | $ | 762,751 | $ | — |
| ||||||||||||||
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As of December 31, 2021 | ||||||||||||||||||||||||||||||||
Arrangement(1) | Type of Arrangement | Rate(2) | Amount Outstanding | Amount Available | Maturity Date | |||||||||||||||||||||||||||
JPMorgan Facility | Revolving/Term | L+3.00% | $ | 286,667 | $ | 85,000 | February 16, 2023 | |||||||||||||||||||||||||
Senior Secured Notes(3) | Bond | 7.50% | 489,000 | — | August 15, 2023 | |||||||||||||||||||||||||||
Total | $ | 775,667 | $ | 85,000 |
Three Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Arrangement(1) | Direct Interest Expense(2) | Amortization of Deferred Financing Costs and Discount | Total Interest Expense | Direct Interest Expense(2) | Amortization of Deferred Financing Costs and Discount | Total Interest Expense | ||||||||||||||||||
Goldman Facility(3) | $ | — | $ | — | $ | — | $ | 3,510 | $ | 637 | $ | 4,147 | ||||||||||||
JPMorgan Facility | 2,030 | 565 | 2,595 | 4,845 | 665 | 5,510 | ||||||||||||||||||
Senior Secured Notes | 9,168 | 1,020 | 10,188 | 9,169 | 1,008 | 10,177 | ||||||||||||||||||
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Total | $ | 11,198 | $ | 1,585 | $ | 12,783 | $ | 17,524 | $ | 2,310 | $ | 19,834 | ||||||||||||
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FS EnergySix Months Ended June 30, 2022 2021 Amortization of Deferred Financing Costs and Discount Total Interest Expense Amortization of Deferred Financing Costs and Discount Total Interest Expense JPMorgan Facility $ 5,364 $ 1,365 $ 6,729 $ 5,243 $ 2,649 $ 7,892 Senior Secured Notes 17,808 2,353 20,161 18,338 2,004 20,342 Total $ 23,172 $ 3,718 $ 26,890 $ 23,581 $ 4,653 $ 28,234
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 9. Financing Arrangements (Continued)
Nine Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Arrangement(1) | Direct Interest Expense(2) | Amortization of Deferred Financing Costs and Discount | Total Interest Expense | Direct Interest Expense(2) | Amortization of Deferred Financing Costs and Discount | Total Interest Expense | ||||||||||||||||||
Goldman Facility(3) | $ | — | $ | — | $ | — | $ | 13,534 | $ | 773 | $ | 14,307 | ||||||||||||
JPMorgan Facility | 7,273 | 3,214 | 10,487 | 12,985 | 1,694 | 14,679 | ||||||||||||||||||
Senior Secured Notes | 27,506 | 3,024 | 30,530 | 27,840 | 3,326 | 31,166 | ||||||||||||||||||
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Total | $ | 34,779 | $ | 6,238 | $ | 41,017 | $ | 54,359 | $ | 5,793 | $ | 60,152 | ||||||||||||
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make-whole fees, if any.
Recent events such as the
FS Energy and Power Fund
Notes to Unaudited Consolidated Financial Statements (Continued)
(in thousands, except share and per share amounts)
Note 9. Financing Arrangements (Continued)
These events have already had adverse effects on the Company’s investment income and the Company expects that such adverse effects may continue for some time. These adverse effects have required the Company to restructure certain of its investments, which could result in further reductions to the Company’s investment income or in impairments on the Company’s investments. In addition, disruptions in the capital markets have resulted in illiquidity in certain market areas at times. These market disruptions and illiquidity are likely to have an adverse effect on the Company’s business, financial condition, results of operations and cash flows. Unfavorable economic conditions caused by these events can also be expected to increase the Company’s funding costs and limit its access to the capital markets. These events have limited the Company’s investment originations, which is likely to continue for the immediate future, and have also had a material negative impact on the Company’s operating results. In addition, depressed mark-to-market valuations of many of the Company’s portfolio companies have materially reduced the value of collateral available to secure the Company’s financing arrangements, and consequently have adversely impacted the Company’s liquidity and may continue to do so in the future.
Under its financing arrangements, the Company has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar financing arrangements. As a result of the events described above, the Company sold certain investments to satisfy certain margin obligations, and if such market conditions recur or worsen, the Company may need to sell additional investments at similarly or even more disadvantageous prices, or enter into other transactions on terms that are disadvantageous to the Company, to satisfy obligations under its financing arrangements. The Company did not comply with covenants under certain of its financing arrangements relating to the Company’s level of shareholder equity as of March 31, 2020. Accordingly, in early April 2020, the Company obtained waivers from the other parties to the applicable financing arrangements to satisfy those covenants. The Company was otherwise in compliance with all covenants required by its financing arrangements as of March 31, 2020. The Company was in compliance with all covenants required by its financing arrangements as of SeptemberJune 30, 2022 and December 31, 2021.
On March 29, 2021, the Company made a $185,000 prepayment of outstanding borrowings under the JPMorgan Facility. Per the terms of the JPMorgan Facility, the first $45,000 of such prepayment was applied to permanently reduce the outstanding commitments under the JPMorgan Facility. The remaining $140,000 of such prepayment reduced outstanding borrowings, but such amount remains available to be re-drawn at any time, at the option of the Company, in accordance with the terms of the JPMorgan Facility.
(continued)
Nine Months Ended September 30, 2021 (Unaudited) | Year Ended December 31, 2020 | |||||||
Per Share Data:(1) | ||||||||
Net asset value, beginning of period | $ | 3.25 | $ | 5.43 | ||||
Results of operations(2) | ||||||||
Net investment income | 0.08 | 0.19 | ||||||
Net realized gain (loss) and unrealized appreciation (depreciation) | 0.33 | (2.20 | ) | |||||
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| |||||
Net increase (decrease) in net assets resulting from operations | 0.41 | (2.01 | ) | |||||
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Shareholder distributions(3) | ||||||||
Distributions from net investment income | (0.09 | ) | (0.14 | ) | ||||
Distributions representing tax return of capital | — | (0.03 | ) | |||||
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| |||||
Net decrease in net assets resulting from shareholder distributions | (0.09 | ) | (0.17 | ) | ||||
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Capital share transactions | ||||||||
Issuance of common shares(4) | — | — | ||||||
Repurchases of common shares(5) | — | — | ||||||
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Net increase (decrease) in net assets resulting from capital share transactions | — | — | ||||||
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Net asset value, end of period | $ | 3.57 | $ | 3.25 | ||||
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Shares outstanding, end of period | 444,629,043 | 440,020,123 | ||||||
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Total return(6) | 12.65 | % | (37.68 | )% | ||||
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Total return (without assuming reinvestment of distributions)(6) | 12.62 | % | (37.02 | )% | ||||
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Ratio/Supplemental Data: | ||||||||
Net assets, end of period | $ | 1,587,154 | $ | 1,428,577 | ||||
Ratio of net investment income to average net assets(7) | 2.94 | % | 4.82 | % | ||||
Ratio of total operating expenses to average net assets(7) | 7.03 | % | 8.20 | % | ||||
Portfolio turnover(8) | 33.61 | % | 26.54 | % | ||||
Total amount of senior securities outstanding, exclusive of treasury securities | $ | 720,667 | $ | 905,667 | ||||
Asset coverage per unit(9) | 3.20 | 2.58 |
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Six Months Ended June 30, 2022 (Unaudited) | Year Ended December 31, 2021 | |||||||||||||
Per Share Data:(1) | ||||||||||||||
Net asset value, beginning of period | $ | 3.59 | $ | 3.25 | ||||||||||
Results of operations(2) | ||||||||||||||
Net investment income | 0.06 | 0.09 | ||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) | 0.40 | 0.37 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 0.46 | 0.46 | ||||||||||||
Shareholder distributions(3) | ||||||||||||||
Distributions from net investment income | (0.06) | (0.12) | ||||||||||||
Net decrease in net assets resulting from shareholder distributions | (0.06) | (0.12) | ||||||||||||
Capital share transactions | ||||||||||||||
Issuance of common shares(4) | — | — | ||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | — | — | ||||||||||||
Net asset value, end of period | $ | 3.99 | $ | 3.59 | ||||||||||
Shares outstanding, end of period | 448,830,667 | 446,089,499 | ||||||||||||
Total return(5) | 12.81 | % | 14.22 | % | ||||||||||
Total return (without assuming reinvestment of distributions)(5) | 12.81 | % | 14.15 | % | ||||||||||
Ratio/Supplemental Data: | ||||||||||||||
Net assets, end of period | $ | 1,791,255 | $ | 1,602,323 | ||||||||||
Ratio of net investment income to average net assets(6)(7) | 3.31 | % | 2.77 | % | ||||||||||
Ratio of total operating expenses to average net assets(6) | 6.70 | % | 6.96 | % | ||||||||||
Ratio of management fee offset to average net assets(6) | (0.14) | % | (0.09) | % | ||||||||||
Ratio of net operating expenses to average net assets(6) | 6.56 | % | 6.87 | % | ||||||||||
Ratio of interest expense to average net assets(6) | 3.20 | % | 3.46 | % | ||||||||||
Portfolio turnover(8) | 14.41 | % | 44.25 | % | ||||||||||
Total amount of senior securities outstanding, exclusive of treasury securities | $ | 762,751 | $ | 775,667 | ||||||||||
Asset coverage per unit(9) | 3.35 | 3.07 |
(1) Per share data may be rounded in order to recompute the ending net asset value per share.
(continued)
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Nine Months Ended September 30, 2021 (Unaudited) | Year Ended December 31, 2020 | |||||||
Ratio of interest expense to average net assets | 3.52 | % | 4.39 | % |
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•our future operating results;
• our business prospects and the prospects of the companies in which we may invest, including our and their ability to achieve our respective objectives as a result of the current COVID-19 pandemic;
• the impact of the investments that we expect to make;
• the ability of our portfolio companies to achieve their objectives;
• our current and expected financing arrangements and investments;
•changes in the general interest rate environment;
• the adequacy of our cash resources, financing sources and working capital;
• the timing and amount of cash flows, distributions and dividends, if any, from our portfolio companies;
• our contractual arrangements and relationships with third parties;
• actual and potential conflicts of interest with FS/EIG Advisor, FS Investments, EIG, or any of their respective affiliates;
• the dependence of our future success on the general economy and its effect on the industries in which we may invest;
• general economic and political trends and other external factors, including the current COVID-19 pandemic and related disruptions caused thereby;
• our use of financial leverage;
• the ability of FS/EIG Advisor to locate suitable investments for us and to monitor and administer our investments;
• the ability of FS/EIG Advisor or its affiliates to attract and retain highly talented professionals;
• our ability to maintain our qualification as a RIC and as a BDC;
• the impact on our business of the Dodd-Frank Act, as amended, and the rules and regulations issued thereunder;
• the effect of changes to tax legislation and our tax position; and
• the tax status of the enterprises in which we may invest.
• changes in the economy;
• risks associated with possible disruption in our operations or the economy generally due to terrorism, natural disasters or pandemics; and
• future changes in laws or regulations and conditions in our operating areas.
In the case of broadly syndicated investments, we generally intend to capitalize on market inefficiencies by investing in loans, bonds, and other asset classes where the market price of such investment reflects a lower value than we believe is warranted based on our fundamental analysis, providing us with an opportunity to earn an attractive return on our investment.
Expenses
Our
agreement
.COVID-19 and Energy Market Developments
We will continue to carefully monitor the impact of both the COVID-19 pandemic and disruptions in the energy markets on our business and the business of our portfolio companies. Because the full effects of these events are not capable of being known at this time, we cannot estimate the impacts on our future financial condition, results of operations or cash flows. We do, however, expect that these events may continue to have a negative impact on our business and the financial condition of certain of our portfolio companies.
Portfolio Investment Activity for the Three and Nine Months Ended September 30, 2021 and for the Year Ended December 31, 2020
Total Portfolio Activity
The following tables present certain selected information regarding our portfolio investment activity for the three and nine months ended September 30, 2021:
Net Investment Activity | For the Three Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2021 | ||||||
Purchases | $ | 339,278 | $ | 749,566 | ||||
Sales and Repayments | (295,338 | ) | (807,152 | ) | ||||
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Net Portfolio Activity | $ | 43,940 | $ | (57,586 | ) | |||
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For the Three Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2021 | |||||||||||||||
New Investment Activity by Asset | Purchases | Percentage | Purchases | Percentage | ||||||||||||
Senior Secured Loans—First Lien | $ | 116,869 | 35 | % | $ | 221,509 | 30 | % | ||||||||
Senior Secured Loans—Second Lien | 15,000 | 4 | % | 15,000 | 2 | % | ||||||||||
Senior Secured Bonds | 21,199 | 6 | % | 167,058 | 22 | % | ||||||||||
Unsecured Debt | 186,210 | 55 | % | 293,965 | 39 | % | ||||||||||
Preferred Equity | — | — | 13 | 0 | % | |||||||||||
Equity/Other | — | — | 52,021 | 7 | % | |||||||||||
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Total | $ | 339,278 | 100 | % | $ | 749,566 | 100 | % | ||||||||
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The following table summarizes the composition of our investment portfolio at cost and fair value as of September 30, 2021 and December 31, 2020:
September 30, 2021 (Unaudited) |
| December 31, 2020 | ||||||||||||||||||||||
Amortized Cost(1) | Fair Value | Percentage of Portfolio | Amortized Cost(1) | Fair Value | Percentage of Portfolio | |||||||||||||||||||
Senior Secured Loans—First Lien | $ | 741,484 | $ | 723,390 | 32 | % | $ | 649,708 | $ | 607,338 | 28 | % | ||||||||||||
Senior Secured Loans—Second Lien | 99,056 | 100,085 | 4 | % | 277,018 | 276,312 | 13 | % | ||||||||||||||||
Senior Secured Bonds | 75,059 | 77,232 | 3 | % | 286,082 | 340,042 | 16 | % | ||||||||||||||||
Unsecured Debt | 438,003 | 404,315 | 18 | % | 245,180 | 134,560 | 6 | % | ||||||||||||||||
Preferred Equity | 500,056 | 486,138 | 21 | % | 689,253 | 471,077 | 22 | % | ||||||||||||||||
Sustainable Infrastructure Investments, LLC | 54,514 | 54,430 | 2 | % | 60,603 | 61,816 | 3 | % | ||||||||||||||||
Equity/Other | 382,490 | 460,116 | 20 | % | 367,561 | 290,331 | 12 | % | ||||||||||||||||
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Total | $ | 2,290,662 | $ | 2,305,706 | 100 | % | $ | 2,575,405 | $ | 2,181,476 | 100 | % | ||||||||||||
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The following table presents certain selected information regarding the composition of our investment portfolio as of September 30, 2021 and December 31, 2020:
September 30, 2021 | December 31, 2020 | |||||||
Number of Portfolio Companies | 73 | 54 | ||||||
% Variable Rate (based on fair value) | 33.0 | % | 37.7 | % | ||||
% Fixed Rate (based on fair value) | 23.6 | % | 24.6 | % | ||||
% Income Producing Preferred Equity and Equity/Other Investments (based on fair value) | 17.9 | % | 24.2 | % | ||||
% Non-Income Producing Preferred Equity and Equity/Other Investments (based on fair value) | 25.5 | % | 13.5 | % | ||||
Weighted Average Purchase Price of Debt Investments (as a % of par value) | 98.5 | % | 93.6 | % | ||||
% of Investments on Non-Accrual (based on fair value) | 7.0 | % | 8.2 | % | ||||
Gross Portfolio Yield Prior to Leverage (based on amortized cost) | 6.0 | % | 7.0 | % | ||||
Gross Portfolio Yield Prior to Leverage (based on amortized cost)—Excluding Non-Income Producing Assets | 8.2 | % | 9.7 | % |
Although our board of trustees has not declared or resumed regular cash distributions to shareholders for any period after March 31, 2020, our board of trustees has since declared three cash distributions in 2020, and three four cash distributions in 2021 and two cash distributions in 2022, each in the amount of $0.03 per share. FS/EIG Advisor and our board of trustees expect that future regular cash distributions to shareholders will beremain suspended until such time that our board of trustees and FS/EIG Advisor believe that market conditions and our financial condition support the resumption of such distributions. Our board of trustees has and will continue to evaluate our ability to pay any distributions in the future. There can be no assurance that we will be able to pay distributions in the future and any annualized distribution rate provided in this report may not be representativefuture.
Net Investment Activity | For the Three Months Ended June 30, 2022 | For the Six Months Ended June 30, 2022 | ||||||||||||||||||||||||
Purchases | $ | 220,408 | $ | 344,498 | ||||||||||||||||||||||
Sales and Repayments | (267,067) | (507,402) | ||||||||||||||||||||||||
Net Portfolio Activity | $ | (46,659) | $ | (162,904) | ||||||||||||||||||||||
For the Three Months Ended June 30, 2022 | For the Six Months Ended June 30, 2022 | |||||||||||||||||||||||||
New Investment Activity by Asset Class | Purchases | Percentage | Purchases | Percentage | ||||||||||||||||||||||
Senior Secured Loans—First Lien | $ | 115,986 | 53 | % | $ | 133,628 | 39 | % | ||||||||||||||||||
Senior Secured Loans—Second Lien | 46,900 | 21 | % | 110,150 | 32 | % | ||||||||||||||||||||
Unsecured Debt | 19,228 | 9 | % | 53,269 | 15 | % | ||||||||||||||||||||
Equity/Other | 38,294 | 17 | % | 47,451 | 14 | % | ||||||||||||||||||||
Total | $ | 220,408 | 100 | % | $ | 344,498 | 100 | % |
June 30, 2022 (Unaudited) | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Amortized Cost(1) | Fair Value | Percentage of Portfolio | Amortized Cost(1) | Fair Value | Percentage of Portfolio | |||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | $ | 770,769 | $ | 762,753 | 31 | % | $ | 832,257 | $ | 812,335 | 34 | % | ||||||||||||||||||||||||||
Senior Secured Loans—Second Lien | 176,003 | 177,184 | 7 | % | 83,322 | 84,083 | 3 | % | ||||||||||||||||||||||||||||||
Senior Secured Bonds | 10,040 | 10,356 | 0 | % | 77,266 | 81,646 | 3 | % | ||||||||||||||||||||||||||||||
Unsecured Debt | 389,039 | 359,450 | 15 | % | 425,715 | 397,068 | 17 | % | ||||||||||||||||||||||||||||||
Preferred Equity | 497,019 | 475,077 | 20 | % | 515,711 | 497,288 | 21 | % | ||||||||||||||||||||||||||||||
Sustainable Infrastructure Investments, LLC | 54,514 | 52,131 | 2 | % | 54,514 | 50,770 | 2 | % | ||||||||||||||||||||||||||||||
Equity/Other | 340,584 | 594,385 | 25 | % | 364,272 | 472,033 | 20 | % | ||||||||||||||||||||||||||||||
Total | $ | 2,237,968 | $ | 2,431,336 | 100 | % | $ | 2,353,057 | $ | 2,395,223 | 100 | % |
June 30, 2022 | December 31, 2021 | |||||||||||||
Number of Portfolio Companies | 71 | 71 | ||||||||||||
% Variable Rate (based on fair value) | 34.4% | 35.1% | ||||||||||||
% Fixed Rate (based on fair value) | 19.5% | 22.3% | ||||||||||||
% Income Producing Preferred Equity and Equity/Other Investments (based on fair value) | 14.3% | 14.1% | ||||||||||||
% Non-Income Producing Preferred Equity and Equity/Other Investments (based on fair value) | 31.8% | 28.5% | ||||||||||||
Weighted Average Purchase Price of Debt Investments (as a % of par value) | 99.3% | 98.5% | ||||||||||||
% of Investments on Non-Accrual (based on fair value) | 9.5% | 10.4% | ||||||||||||
Gross Portfolio Yield Prior to Leverage (based on amortized cost) | 6.3% | 5.5% | ||||||||||||
Gross Portfolio Yield Prior to Leverage (based on amortized cost)—Excluding Non-Income Producing Assets | 8.4% | 7.8% |
Direct Originations
Characteristics of All Direct Originations held in | September 30, 2021 | December 31, 2020 | ||||||
Number of Portfolio Companies | 45 | 46 | ||||||
% of Investments on Non-Accrual (based on fair value) | 10.0 | % | 9.1 | % | ||||
Total Cost of Direct Originations | $ | 1,618,948 | $ | 2,317,824 | ||||
Total Fair Value of Direct Originations | $ | 1,630,518 | $ | 1,953,804 | ||||
% of Total Investments, at Fair Value | 70.7 | % | 89.6 | % | ||||
Gross Portfolio Yield Prior to Leverage (based on amortized cost) of Funded Direct Originations | 6.0 | % | 7.1 | % | ||||
Gross Portfolio Yield Prior to Leverage (based on amortized cost) of Funded Direct Originations—Excluding Non-Income Producing Assets | 9.5 | % | 10.0 | % |
2021:
Characteristics of All Direct Originations held in Portfolio | June 30, 2022 | December 31, 2021 | ||||||||||||
Number of Portfolio Companies | 44 | 43 | ||||||||||||
% of Investments on Non-Accrual (based on fair value) | 12.9% | 15.4% | ||||||||||||
Total Cost of Direct Originations | $1,546,521 | $1,586,099 | ||||||||||||
Total Fair Value of Direct Originations | $1,790,041 | $1,621,482 | ||||||||||||
% of Total Investments, at Fair Value | 73.6% | 67.7% | ||||||||||||
Gross Portfolio Yield Prior to Leverage (based on amortized cost) of Funded Direct Originations | 6.2% | 5.1% | ||||||||||||
Gross Portfolio Yield Prior to Leverage (based on amortized cost) of Funded Direct Originations—Excluding Non-Income Producing Assets | 9.7% | 8.4% |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Portfolio Composition by Strategy | Fair Value | Percentage of Portfolio | Fair Value | Percentage of Portfolio | ||||||||||||
Direct Originations | $ | 1,630,518 | 71 | % | $ | 1,953,804 | 90 | % | ||||||||
Broadly Syndicated/Other | 675,188 | 29 | % | 227,672 | 10 | % | ||||||||||
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| |||||||||
Total | $ | 2,305,706 | 100 | % | $ | 2,181,476 | 100 | % | ||||||||
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2021:
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Portfolio Composition by Strategy | Fair Value | Percentage of Portfolio | Fair Value | Percentage of Portfolio | ||||||||||||||||||||||
Direct Originations | $ | 1,790,041 | 74 | % | $ | 1,621,482 | 68 | % | ||||||||||||||||||
Broadly Syndicated/Other | 641,295 | 26 | % | 773,741 | 32 | % | ||||||||||||||||||||
Total | $ | 2,431,336 | 100 | % | $ | 2,395,223 | 100 | % |
Investment
| Summary Description | |||||||
1 | Investment exceeding expectations and/or capital gain expected. | |||||||
2 | Performing investment generally executing in accordance with the portfolio company’s business plan—full return of principal and interest expected. | |||||||
3 | Performing investment requiring closer monitoring. | |||||||
4 | Underperforming investment—some loss of interest or dividend possible, but still expecting a positive return on investment. | |||||||
5 | Underperforming investment with expected loss of interest and some principal. |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Investment Rating | Fair Value | Percentage of Portfolio | Fair Value | Percentage of Portfolio | ||||||||||||
1 | $ | — | — | $ | — | — | ||||||||||
2 | 1,726,767 | 75 | % | 966,968 | 44 | % | ||||||||||
3 | 302,593 | 13 | % | 888,656 | 41 | % | ||||||||||
4 | 170,899 | 7 | % | 162,251 | 7 | % | ||||||||||
5 | 105,447 | 5 | % | 163,601 | 8 | % | ||||||||||
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| |||||||||
Total | $ | 2,305,706 | 100 | % | $ | 2,181,476 | 100 | % | ||||||||
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2021:
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Investment Rating | Fair Value | Percentage of Portfolio | Fair Value | Percentage of Portfolio | ||||||||||||||||||||||
1 | $ | — | — | $ | — | — | ||||||||||||||||||||
2 | 1,878,180 | 77 | % | 1,771,346 | 74 | % | ||||||||||||||||||||
3 | 164,034 | 7 | % | 232,319 | 10 | % | ||||||||||||||||||||
4 | 314,885 | 13 | % | 284,055 | 12 | % | ||||||||||||||||||||
5 | 74,237 | 3 | % | 107,503 | 4 | % | ||||||||||||||||||||
Total | $ | 2,431,336 | 100 | % | $ | 2,395,223 | 100 | % |
2021
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Amount | Percentage of Total Income | Amount | Percentage of Total Income | Amount | Percentage of Total Income | Amount | Percentage of Total Income | |||||||||||||||||||||||||
Interest income | $ | 24,200 | 64 | % | $ | 35,715 | 77 | % | $ | 80,707 | 70 | % | $ | 147,461 | 86 | % | ||||||||||||||||
Paid-in-kind interest income | 8,614 | 23 | % | 10,052 | 22 | % | 26,455 | 23 | % | 22,536 | 13 | % | ||||||||||||||||||||
Fee income | 117 | 0 | % | 352 | 1 | % | 1,312 | 1 | % | 862 | 1 | % | ||||||||||||||||||||
Dividend income | 4,960 | 13 | % | — | — | 6,534 | 6 | % | 66 | 0 | % | |||||||||||||||||||||
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Total investment income(1) | $ | 37,891 | 100 | % | $ | 46,119 | 100 | % | $ | 115,008 | 100 | % | $ | 170,925 | 100 | % | ||||||||||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Amount | Percentage of Total Income | Amount | Percentage of Total Income | Amount | Percentage of Total Income | Amount | Percentage of Total Income | |||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 26,815 | 57 | % | $ | 27,342 | 70 | % | $ | 53,902 | 65 | % | $ | 56,507 | 73 | % | ||||||||||||||||||||||||||||||||||
Paid-in-kind interest income | 7,341 | 15 | % | 9,361 | 24 | % | 12,469 | 15 | % | 17,841 | 23 | % | ||||||||||||||||||||||||||||||||||||||
Fee income | 9,226 | 20 | % | 679 | 2 | % | 10,459 | 13 | % | 1,195 | 2 | % | ||||||||||||||||||||||||||||||||||||||
Dividend income | 3,691 | 8 | % | 1,574 | 4 | % | 6,152 | 7 | % | 1,574 | 2 | % | ||||||||||||||||||||||||||||||||||||||
Total investment income(1) | $ | 47,073 | 100 | % | $ | 38,956 | 100 | % | $ | 82,982 | 100 | % | $ | 77,117 | 100 | % |
Fee income is transaction based, and typically consists of prepayment fees and structuring fees. As such, future fee income is generally dependent on new direct origination investments and the occurrence of events at existing portfolio companies resulting in such fees.
The increase in the amount of fee income for the three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021 was primarily due to an increase in prepayment fees.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Management fees | $ | 10,077 | $ | 10,626 | $ | 31,005 | $ | 38,619 | ||||||||
Administrative services expenses | 1,457 | 2,628 | 4,480 | 4,937 | ||||||||||||
Share transfer agent fees | 736 | 738 | 2,182 | 1,953 | ||||||||||||
Accounting and administrative fees | 169 | 172 | 516 | 611 | ||||||||||||
Interest expense | 12,783 | 19,834 | 41,017 | 60,152 | ||||||||||||
Trustees’ fees | 189 | 190 | 587 | 597 | ||||||||||||
Expenses associated with our independent audit and related fees | 113 | 114 | 336 | 338 | ||||||||||||
Legal fees | 15 | 661 | 18 | 1,581 | ||||||||||||
Printing fees | 89 | 164 | 399 | 522 | ||||||||||||
Other | 515 | 297 | 1,311 | 1,974 | ||||||||||||
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| |||||||||
Total operating expenses | 26,143 | 35,424 | 81,851 | 111,284 | ||||||||||||
Less: Management fee offset | (1,026 | ) | (2 | ) | (1,349 | ) | (452 | ) | ||||||||
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Net operating expenses | $ | 25,117 | $ | 35,422 | $ | 80,502 | $ | 110,832 | ||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Management fees | $ | 11,276 | $ | 10,278 | $ | 22,011 | $ | 20,928 | ||||||||||||||||||
Administrative services expenses | 1,490 | 1,442 | 2,910 | 3,023 | ||||||||||||||||||||||
Share transfer agent fees | 728 | 728 | 1,448 | 1,446 | ||||||||||||||||||||||
Accounting and administrative fees | 189 | 161 | 366 | 347 | ||||||||||||||||||||||
Interest expense | 13,196 | 12,744 | 26,890 | 28,234 | ||||||||||||||||||||||
Trustees' fees | 190 | 191 | 417 | 398 | ||||||||||||||||||||||
Expenses associated with our independent audit and related fees | 112 | 112 | 223 | 223 | ||||||||||||||||||||||
Legal fees | 150 | — | 150 | 3 | ||||||||||||||||||||||
Printing fees | 76 | 123 | 409 | 310 | ||||||||||||||||||||||
Other | 530 | 425 | 1,530 | 796 | ||||||||||||||||||||||
Total operating expenses | 27,937 | 26,204 | 56,354 | 55,708 | ||||||||||||||||||||||
Less: Management fee offset | (1,700) | (321) | (2,398) | (323) | ||||||||||||||||||||||
Net operating expenses | $ | 26,237 | $ | 25,883 | $ | 53,956 | $ | 55,385 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Ratio of operating expenses to average net assets | 1.72 | % | 2.42 | % | 5.28 | % | 6.21 | % | ||||||||
Ratio of management fee offset to average net assets | (0.07 | )% | — | (0.09 | )% | (0.03 | )% | |||||||||
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Ratio of net operating expenses to average net assets | 1.65 | % | 2.42 | % | 5.19 | % | 6.18 | % | ||||||||
Ratio of interest expense to average net assets | (0.84 | )% | (1.35 | )% | (2.64 | )% | (3.36 | )% | ||||||||
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Ratio of net operating expenses, excluding interest expense, to average net assets | 0.81 | % | 1.07 | % | 2.55 | % | 2.82 | % | ||||||||
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(not annualized):
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Ratio of operating expenses to average net assets | 1.59 | % | 1.63 | % | 3.35 | % | 3.56 | % | ||||||||||||||||||
Ratio of management fee offset to average net assets | (0.10) | % | (0.02) | % | (0.14) | % | (0.02) | % | ||||||||||||||||||
Ratio of net operating expenses to average net assets | 1.49 | % | 1.61 | % | 3.21 | % | 3.54 | % | ||||||||||||||||||
Ratio of interest expense to average net assets | (0.75) | % | (0.79) | % | (1.60) | % | (1.80) | % | ||||||||||||||||||
Ratio of net operating expenses, excluding interest expense, to average net assets | 0.74 | % | 0.82 | % | 1.61 | % | 1.74 | % |
Net Investment Income
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net realized gain (loss) on investments(1) | $ | 1,625 | $ | (485,788 | ) | $ | (260,881 | ) | $ | (958,164 | ) | |||||
Net realized gain (loss) on foreign currency | — | — | (6 | ) | — | |||||||||||
Net realized gain (loss) on swap contracts | — | — | — | 20,250 | ||||||||||||
Net realized gain (loss) on debt extinguishment | — | — | — | 2,591 | ||||||||||||
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Total net realized gain (loss) | $ | 1,625 | $ | (485,788 | ) | $ | (260,887 | ) | $ | (935,323 | ) | |||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net realized gain (loss) on investments(1) | $ | 60,504 | $ | (262,066) | $ | 31,460 | $ | (262,506) | ||||||||||||||||||
Net realized gain (loss) on foreign currency | — | (6) | — | (6) | ||||||||||||||||||||||
Net realized gain (loss) on swap contracts | (1,392) | — | (1,808) | — | ||||||||||||||||||||||
Net realized gain (loss) on debt extinguishment | (183) | — | (929) | — | ||||||||||||||||||||||
Total net realized gain (loss) | $ | 58,929 | $ | (262,072) | $ | 28,723 | $ | (262,512) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net change in unrealized appreciation (depreciation) on investments | $ | 48,994 | $ | 468,628 | $ | 408,973 | $ | 7,220 | ||||||||
Net change in unrealized appreciation (depreciation) on swap contracts | — | — | — | (6,551 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency | (21 | ) | 6 | (13 | ) | (9 | ) | |||||||||
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Total net change in unrealized appreciation (depreciation) | $ | 48,973 | $ | 468,634 | $ | 408,960 | $ | 660 | ||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | $ | (64,079) | $ | 228,416 | $ | 151,202 | $ | 359,979 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on swap contracts | (106) | — | (3,588) | — | ||||||||||||||||||||||
Net change in unrealized gain (loss) on foreign currency | — | 4 | — | 8 | ||||||||||||||||||||||
Total net change in unrealized appreciation (depreciation) and unrealized gain (loss) | $ | (64,185) | $ | 228,420 | $ | 147,614 | $ | 359,987 |
continuing uncertainty surrounding its long-term impact, the failure of Saudi Arabia, Russia and other oil producing countries to reach an agreement around crude oil production and the conversion of unrealized depreciation to realized losses.
Net Increase (Decrease) in Net Assets Resulting from Operations
$119,207 ($0.27 per share), respectively.
This “Financial Condition, Liquidity and Capital Resources” section should be read in conjunction with “COVID-19“COVID-19 and Energy Market Developments” above and “—Financing Arrangements” below.
Arrangement(1) | Type of Arrangement | Rate(2) | Amount Outstanding | Amount Available | Maturity Date | |||||||||||||
JPMorgan Facility | Revolving/Term | L+3.00% | $ | 231,667 | $ | 140,000 | February 16, 2023 | |||||||||||
Senior Secured Notes(3) | Bond | 7.50% | 489,000 | — | August 15, 2023 | |||||||||||||
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Total | $ | 720,667 | $ | 140,000 | ||||||||||||||
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2022:
Arrangement(1) | Type of Arrangement | Rate(2) | Amount Outstanding | Amount Available | Maturity Date | |||||||||||||||||||||||||||
JPMorgan Facility | Revolving/Term | L+3.00% | $ | 305,676 | $ | — | February 16, 2023 | |||||||||||||||||||||||||
Senior Secured Notes(3) | Bond | 7.50% | 457,075 | — | August 15, 2023 | |||||||||||||||||||||||||||
Total | $ | 762,751 | $ | — |
distributions in the form of cash or common shares at the discretion of our board of trustees. The timing and amount of any future distributions to shareholders are subject to applicable legal restrictions and the sole discretion of our board of trustees.
our continuous public offering, including any fees payable to FS/EIG Advisor. Moreover, a return of capital will generally not be taxable, but will reduce each shareholder’s cost basis in our common shares, and will result in a higher reported capital gain or lower reported capital loss when the common shares on which such return of capital was received are sold. Each year a statement on Form 1099-DIV identifying the sources of the distributions will be mailed to our shareholders.
Distribution | ||||||||
For the Three Months Ended | Per Share | Amount | ||||||
Fiscal 2020 | ||||||||
March 31, 2020 | $ | 0.0833 | $ | 36,207 | ||||
June 30, 2020 | 0.0300 | 13,098 | ||||||
September 30, 2020 | 0.0300 | 13,163 | ||||||
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Total | $ | 0.1433 | $ | 62,468 | ||||
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Fiscal 2021 | ||||||||
March 31, 2021 | $ | 0.0300 | $ | 13,249 | ||||
June 30, 2021 | 0.0300 | 13,294 | ||||||
September 30, 2021 | 0.0300 | 13,339 | ||||||
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Total | $ | 0.0900 | $ | 39,882 | ||||
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2021:
Distribution | ||||||||||||||
For the Three Months Ended | Per Share | Amount | ||||||||||||
Fiscal 2021 | ||||||||||||||
March 31, 2021 | $ | 0.03 | $ | 13,249 | ||||||||||
June 30, 2021 | 0.03 | 13,294 | ||||||||||||
Total | $ | 0.06 | $ | 26,543 | ||||||||||
Fiscal 2022 | ||||||||||||||
March 31, 2022 | $ | 0.03 | $ | 13,426 | ||||||||||
June 30, 2022 | 0.03 | 13,465 | ||||||||||||
Total | $ | 0.06 | $ | 26,891 |
and Estimates
•our quarterly fair valuation process begins with FS/EIG Advisor reviewing and documenting preliminary valuations of each portfolio company or investment;
•such preliminary valuations for each portfolio companycompany or investment are compared to a valuation range that is obtained from an independent third-party valuation service;
•FS/EIG Advisor then provides the valuation committee of our board of trustees, or the valuation committee, its valuation recommendation for each portfolio company or investment, along with supporting materials;
•preliminary valuations are then discussed with the valuation committee;
•the valuation committee reviews the preliminary valuations and FS/EIG Advisor, together with our independent third-party valuation services, if applicable, supplements the preliminary valuations to reflect any comments provided by the valuation committee;
•following its review, the valuation committee will recommend that our board of trustees approve our fair valuations; and
•our board of trustees discusses the valuations and determines the fair value of each such investment in our portfolio in good faith based on various statistical and other factors, including the input and recommendation of FS/EIG Advisor, the valuation committee and any independent third-party valuation services, if applicable.
interests in public companies for which market quotations are readily available is based upon the most recent closing public market price. Portfolio securities that carry certain restrictions on sale are typically valued at a discount from the public market value of the security.
A summaryhedging relationship. We are currently evaluating the impact of the adoption of ASU 2020-04 and ASU 2021-01 on our significant contractual payment obligations for the repayment of outstanding indebtedness at September 30, 2021 is as follows:
Payments Due By Period | ||||||||||||||||||||||
Maturity Date(1) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||
JPMorgan Facility(2) | February 16, 2023 | $ | 231,667 | — | $ | 231,667 | — | — | ||||||||||||||
Senior Secured Notes(3) | August 15, 2023 | $ | 489,000 | — | $ | 489,000 | — | — |
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Off-Balanceconsolidated financial statements. Sheet Arrangements
We currently have no off-balance sheet arrangements, including any risk management of commodity pricing or other hedging practices.
Basis Point Change in Interest Rates Down 13 basis points No change Up 100 basis points Up 300 basis points Up 500 basis pointsSeptemberJune 30, 2021, 33.0%2022, 34.4% of our portfolio investments (based on fair value) paid variable interest rates, 23.6%19.5% paid fixed interest rates, 17.9%14.3% were income producing preferred equity and equity/other investments and the remaining 25.5%31.8% consisted of non-income producing preferred equity and equity/other investments. A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to the variable rate In 2020, the U.S. Federal Reserve and other central banks reduced certain interest rates in response to the COVID-19P pandemic and market conditions. A prolonged reduction in interest rates may reduce our net investment income.Pursuantursuant to the terms of the JPMorgan Facility, we borrow at a floating rate based on a benchmark interest rate. Under the indenture governing the Senior Secured Notes, we pay interest to the holders of such notes at a fixed rate. To the extent that any present or future credit facilities or other financing arrangements that we or any of our subsidiaries enter into are based on a floating interest rate, we will be subject to risks relating to changes in market interest rates. In periods of rising interest rates when we or our subsidiaries have such debt outstanding or financing arrangements in effect, our interest expense would increase, which could reduce our net investment income, especially to the extent we hold fixed rate investments.SeptemberJune 30, 20212022 (dollar amounts are presented in thousands): Increase
(Decrease)
in Interest
Income Increase
(Decrease)
in Interest
Expense Increase
(Decrease) in
Net Interest
Income Percentage
Change in
Net Interest
Income $ (230 ) $ (218 ) $ (12 ) (0.0 )% — — — — $ 3,011 $ 2,176 $ 835 0.9 % $ 15,435 $ 6,528 $ 8,907 9.7 % $ 28,461 $ 10,880 $ 17,581 19.1 % Basis Point Change in Interest Rates
(Decrease)
in Interest
IncomeIncrease
(Decrease)
in Interest
ExpenseIncrease
(Decrease) in
Net Interest
IncomePercentage
Change in
Net Interest
IncomeDown 229 basis points $ (13,211) $ (5,943) $ (7,268) (7.6) % No change — — — — Up 100 basis points $ 8,138 $ 2,641 $ 5,497 5.7 % Up 300 basis points $ 24,415 $ 7,924 $ 16,491 17.2 % Up 500 basis points $ 30,112 $ 9,773 $ 20,339 21.2 % ninesix months ended SeptemberJune 30, 20212022 and 2020,2021, we did not engage in interest rate hedging activities.Policies—Policies and Estimates—Valuation of Portfolio Investments.”
SeptemberJune 30, 2021.2022. Based on the foregoing, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that we would meet our disclosure obligations.SeptemberJune 30, 20212022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
10-K.10-K, as supplemented by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, other than the risk described below.
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FS Energy and Power Fund | ||||||||
By: | /s/ MICHAEL C. FORMAN | |||||||
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Chief Executive Officer (Principal Executive Officer) | ||||||||
By: | /s/ EDWARD T. GALLIVAN, JR. | |||||||
Edward T. Gallivan, Jr.
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