Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
 
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00813

OFS CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)  

Delaware
46-1339639
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)

10 S. Wacker Drive, Suite 2500
Chicago, Illinois 60606
(Address of principal executive office)

(847) 734-2060
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý     No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ¨     No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
¨
Accelerated filer
ý
 
 
 
 
Non-accelerated filer
¨  (do not check if a smaller reporting company)
Smaller reporting company
¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨     No  ý

The number of shares of the issuer’s Common Stock, $0.01 par value, outstanding as of November 2, 2016 was 9,697,210.





OFS CAPITAL CORPORATION

TABLE OF CONTENTS
 
 
Item 1.
 
Consolidated Balance Sheets as of September 30, 2016 (unaudited), and December 31, 2015
 
Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2016 (unaudited), and 2015 (unaudited)
 
Consolidated Statements of Changes in Net Assets for the Three and Nine Months Ended September 30, 2016 (unaudited), and 2015 (unaudited)
 
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2016 (unaudited), and 2015 (unaudited)
 
Consolidated Schedules of Investments as of September 30, 2016 (unaudited), and December 31, 2015
 
Item 2.
Item 3.
Item 4.
 
 
Item 1.
Item 1A.
Item 2
Item 3.
Item 4.
Item 5.
Item 6.

2


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

OFS Capital Corporation and Subsidiaries

Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)

September 30,
2016

December 31,
2015

(unaudited)


Assets





Investments, at fair value





Non-control/non-affiliate investments (amortized cost of $166,634 and $175,529, respectively)
$
164,606


$
177,290

Affiliate investments (amortized cost of $66,686 and $63,113, respectively)
68,826


66,393

Control investments (amortized cost of $24,994 and $13,613, respectively)
25,737


13,613

Total investments at fair value (amortized cost of $258,154 and $252,255, respectively)
259,169


257,296

Cash and cash equivalents
27,989


32,714

Interest receivable
1,056


789

Prepaid expenses and other assets
4,008


3,877

Total assets
$
292,222


$
294,676







Liabilities





SBA debentures (net of deferred debt issuance costs of $3,133 and $3,420, respectively)
$
146,747


$
146,460

Interest payable
391


1,548

Management and incentive fees payable
1,937


2,238

Administration fee payable
366


488

Accrued professional fees
423


433

Other liabilities
148


497

Total liabilities
150,012


151,664







Commitments and Contingencies (Note 8)











Net Assets





Preferred stock, par value of $0.01 per share, 2,000,000 shares authorized, -0- shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
$


$

Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 9,697,210 and 9,691,170 shares issued and outstanding as of September 30, 2016, and December 31, 2015, respectively
97


97

Paid-in capital in excess of par
134,522


134,446

Accumulated undistributed net investment income
5,230


4,612

Accumulated undistributed net realized gain (loss)
1,346


(1,184
)
Net unrealized appreciation on investments
1,015


5,041

Total net assets
142,210


143,012







Total liabilities and net assets
$
292,222


$
294,676







Number of shares outstanding
9,697,210


9,691,170

Net asset value per share
$
14.67


$
14.76


See Notes to Consolidated Financial Statements.

3


OFS Capital Corporation and Subsidiaries

Consolidated Statements of Operations (unaudited)
(Dollar amounts in thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2016

2015

2016

2015








Investment income











Interest income











Non-control/non-affiliate investments
$
4,355


$
5,387


$
13,522


$
17,319

Affiliate investments
1,643


1,308


5,000


4,062

Control investment
582




1,413



Total interest income
6,580


6,695


19,935


21,381

Dividend income











Non-control/non-affiliate investments
102


185


264


333

Affiliate investments
343


406


1,166


1,016

Control investments
83




194



Total dividend income
528


591


1,624


1,349

Fee income











Non-control/non-affiliate investments
169


310


1,164


448

Affiliate investments
48


92


87


213

Control investments
34




75



Total fee income
251


402


1,326


661













Total investment income
7,359


7,688


22,885


23,391













Expenses











Interest expense
1,320


1,185


3,936


5,646

Management fees
1,120


1,120


3,324


4,101

Incentive fee
817


908


2,407


1,514

Professional fees
260


262


877


857

Administration fee
255


281


1,009


1,148

General and administrative expenses
290


302


923


994













Total expenses
4,062


4,058


12,476


14,260













Net investment income
3,297


3,630


10,409


9,131













Net realized and unrealized gain (loss) on investments











Net realized gain (loss) on non-control/non-affiliate investments (2015 revised - Note 2)
58


235


2,624


200

Net realized gain on affiliate investments






1,471

Net change in unrealized appreciation/depreciation on non-control/non-affiliate investments (2015 revised - Note 2)
(538
)

(2,096
)

(3,668
)

(241
)
Net change in unrealized appreciation/depreciation on affiliate investments
(363
)

(348
)

79


1,494

Net change in unrealized appreciation/depreciation on control investment
(66
)



(439
)














Net gain (loss) on investments
(909
)

(2,209
)

(1,404
)

2,924













Net increase in net assets resulting from operations
$
2,388


$
1,421


$
9,005


$
12,055













Net investment income per common share - basic and diluted
$
0.34


$
0.38


$
1.07


$
0.94

Net increase in net assets resulting from operations per common share - basic and diluted
$
0.25


$
0.15


$
0.93


$
1.25

Distributions declared per common share
$
0.34


$
0.34


$
1.02


$
1.02

Basic and diluted weighted average shares outstanding
9,694,353


9,675,930


9,692,634


9,663,418


See Notes to Consolidated Financial Statements.

4


OFS Capital Corporation and Subsidiaries

Consolidated Statements of Changes in Net Assets (unaudited)
(Dollar amounts in thousands)
 
Nine Months Ended September 30,
 
2016
 
2015
Increase in net assets resulting from operations:
 
 
 
Net investment income
$
10,409

 
$
9,131

Net realized gain on investments (2015 revised - Note 2)
2,624

 
1,671

Net change in unrealized appreciation/depreciation on investments (2015 revised - Note 2)
(4,028
)
 
1,253

Net increase in net assets resulting from operations
9,005

 
12,055

Distributions to shareholders from:
 
 
 
Accumulated net investment income (2015 revised - Note 2)
(9,886
)
 
(9,856
)
Accumulated net realized gain (2015 revised - Note 2)

 

Total distributions to shareholders
(9,886
)
 
(9,856
)
Common stock transactions:
 
 
 
Reinvestment of shareholder distributions
79

 
449

Net increase in net assets resulting from capital transactions
79

 
449

Net increase (decrease) in net assets
(802
)
 
2,648

Net assets:
 
 
 
Beginning of period
$
143,012

 
$
137,471

End of period
$
142,210

 
$
140,119

Accumulated undistributed net investment income (2015 revised - Note 2)
$
5,230

 
$
1,379

Common stock activity:
 
 
 
Shares issued from reinvestment of shareholder distributions
6,040

 
39,295

Shares issued and outstanding at beginning of period
9,691,170

 
9,650,834

Shares issued and outstanding at end of period
9,697,210

 
9,690,129


See Notes to Consolidated Financial Statements.

5


OFS Capital Corporation and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)
(Dollar amounts in thousands)
 
Nine Months Ended September 30,
 
2016
 
2015
Cash Flows From Operating Activities
 
 
 
Net increase in net assets resulting from operations
$
9,005


$
12,055

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
 
 
 
Net realized gain on investments(1)
(2,624
)
 
(1,671
)
Net change in unrealized appreciation/depreciation on investments(1)
4,028

 
(1,253
)
Amortization of discounts and premiums, net
(790
)
 
(913
)
Amortization of deferred loan amendment and other fee revenue
(372
)
 
(448
)
Proceeds from collection of deferred loan fee revenue
107

 
58

Payment-in-kind interest and dividend income
(1,903
)
 
(1,983
)
Amortization and write-off of deferred debt issuance costs
330

 
2,004

Amortization of intangible asset
146

 
146

Purchase and origination of portfolio investments
(40,179
)
 
(78,578
)
Proceeds from principal payments on portfolio investments
37,137

 
61,904

Proceeds from sale or redemption of portfolio investments
2,115

 
97,687

Proceeds from distribution received from portfolio company

 
51

Changes in operating assets and liabilities:
 
 
 
Interest payable
(1,157
)
 
(967
)
Management and incentive fees payable
(301
)
 
800

Administration fee payable
(122
)
 
8

Other assets and liabilities
(338
)
 
147

Net cash provided by operating activities
5,082

 
89,047

 
 
 
 
Cash Flows From Financing Activities
 
 
 
Distributions paid to shareholders
(9,807
)
 
(9,407
)
Borrowings under revolving line of credit

 
1,217

Repayments under revolving line of credit

 
(73,829
)
Draw down on SBA debentures

 
22,585

Payment of debt issuance costs

 
(548
)
Payment of common stock offering costs

 
(4
)
Net cash used in financing activities
(9,807
)
 
(59,986
)
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(4,725
)
 
29,061

 
 
 
 
Cash and cash equivalents — beginning of period
32,714

 
12,447

Cash and cash equivalents — end of period
$
27,989

 
$
41,508

 
 
 
 
Supplemental Disclosure of Cash Flow Information:
 
 
 
Cash paid during the period for interest
$
4,731

 
$
4,609

Reinvestment of shareholder distributions
$
79


$
449


(1)
2015 includes the effects of a revision to the 2015 consolidated statement of operations. The revision had no impact on net cash provided by operating activities for the nine months ended September 30, 2015. See Note 2 for more details.

See Notes to Consolidated Financial Statements.

6

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments
September 30, 2016
(Dollar amounts in thousands)


Portfolio Company
Investment Type
 
Industry
 
Interest Rate (1)
 
Spread Above Index (1)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value
 
Percent of Net Assets
Non-control/Non-affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accurate Group Holdings, Inc. (3)

Offices of Real Estate Appraisers


















Subordinated Loan



13.00%

N/A

8/23/2018

$
10,000


$
10,037


$
10,000


7.0
 %





















Armor Holdings II LLC

Other Professional, Scientific, and Technical Services


















Senior Secured Term Loan



10.25%

(L +9.00%)

12/26/2020

3,500


3,467


3,473


2.4






















AssuredPartners, Inc

Insurance Agencies and Brokerages


















Senior Secured Term Loan



10.00%

(L +9.00%)

10/20/2023

5,000


4,849


4,969


3.5






















BCC Software, LLC (3)

Custom Computer Programming Services


















Senior Secured Term Loan



9.00%

(L +8.00%)

6/20/2019

5,542


5,497


5,514


3.9

Senior Secured Revolver (8) (2)



N/A

(L +8.00%)

6/20/2019



(9
)

(6
)












5,542


5,488


5,508


3.9

Community Intervention Services, Inc. (3)

Outpatient Mental Health and Substance Abuse Centers


















Subordinated  Loan (5)(8)(9)



10.0% cash / 3.0% PIK

N/A

1/16/2021

6,722


6,664


5,433


3.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Confie Seguros Holdings II Co.

Insurance Agencies and Brokerages


















Senior Secured Term Loan



11.50%

(P +8.00%)

5/8/2019

4,000


3,973


3,997


2.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C7 Data Centers, Inc. (3)

Other Computer Related Services


















Senior Secured Term Loan (7)



12.42%

(L +8.50%)

6/22/2020

13,850


13,781


13,674


9.6

Elgin Fasteners Group

Bolt, Nut, Screw, Rivet, and Washer Manufacturing


















Senior Secured Term Loan



8.50%

(L +7.25%)

8/27/2018

4,158


4,142


4,003


2.8






















Inhance Technologies Holdings LLC

Other Basic Inorganic Chemical Manufacturing


















Senior Secured Term Loan A



5.50%

(L +4.50%)

2/7/2018

2,061


2,053


2,043


1.4


7

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
September 30, 2016
(Dollar amounts in thousands)


Portfolio Company
Investment Type
 
Industry
 
Interest Rate (1)
 
Spread Above Index (1)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value
 
Percent of Net Assets
Intelli-Mark Technologies, Inc.(3)

Other Travel Arrangement and Reservation Services


















Senior Secured Term Loan (9)



13.00%

N/A

11/23/2020

$
8,750


$
8,678


$
8,857


6.2
 %
Common Equity (2,553,089 shares) (8)












1,500


1,755


1.2











8,750


10,178


10,612


7.4

Intrafusion Holding Corp. (3)

Other Outpatient Care Centers


















Senior Secured Term Loan B (6)



11.48%

(L +6.75%)

9/25/2020

14,250


14,204


14,393


10.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jobson Healthcare Information, LLC (3)

Other Professional, Scientific, and Technical Services


















Senior Secured Term Loan (9)



10.13% cash / 2.795% PIK

(L +10.925%)

7/21/2019

14,505


14,288


13,362


9.4

Warrants (1,056,428 member units (8)












454


119


0.1











14,505


14,742


13,481


9.5

Maverick Healthcare Equity, LLC (3)

Home Health Equipment Rental


















Preferred Equity (1,250,000 units) (8)












900


1,572


1.1

Class A Common Equity (1,250,000 units) (8)














235


0.2














900


1,807


1.3

MN Acquisition, LLC (3)

Software Publishers


















Senior Secured Term Loan



10.50%

(L + 9.50%)

8/24/2021

4,995


4,896


4,896


3.4

My Alarm Center, LLC (3)

Security Systems Services (except Locksmiths)


















Senior Secured Term Loan



12.00%

(L +11.00%)

7/9/2019

6,250


6,013


6,159


4.3

Class A Preferred Equity (100 units) (8)












203


217


0.2

Class A-1 Preferred Equity (25 units) (8)












44


44













6,250


6,260


6,420


4.5

MYI Acquiror Limited (4)

Insurance Agencies and Brokerages


















Senior Secured Term Loan A



5.75%

(L +4.50%)

5/28/2019

4,686


4,680


4,609


3.2






















NHR Holdings, LLC

Other Telecommunications


















Senior Secured Term Loan A



5.50%

(L +4.25%)

11/30/2018

1,425


1,416


1,405


1.0

Senior Secured Term Loan B



5.50%

(L +4.25%)

11/30/2018

1,445


1,436


1,425


1.0











2,870


2,852


2,830


2.0

NVA Holdings, Inc.

Veterinary Services


















Senior Secured Term Loan



8.00%

(L +7.00%)

8/14/2022

650


650


650


0.5


8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
September 30, 2016
(Dollar amounts in thousands)


Portfolio Company
Investment Type
 
Industry
 
Interest Rate (1)
 
Spread Above Index (1)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value
 
Percent of Net Assets
O2 Holdings, LLC (3)

Fitness and Recreational Sports Centers


















Senior Secured Term Loan



11.53%

(L +11.00%)

9/2/2021

$
9,500


$
9,413


$
9,418


6.6
 %





















Planet Fitness Midwest LLC (3)

Fitness and Recreational Sports Centers


















Senior Secured Term Loan



13.00%

N/A

12/16/2021

5,000


4,953


4,972


3.5






















Quantum Spatial, Inc. (f/k/a Aero-Metric, Inc.)

Other Information Services


















Senior Secured Term Loan



6.75% cash / 1.0% PIK

(L +6.50%)

8/27/2017

2,503


2,490


2,391


1.7






















Ranpak Corp.

Packaging Machinery Manufacturing


















Senior Secured Term Loan



8.25%

(L +7.25%)

10/3/2022

2,000


1,996


1,817


1.3

Sentry Centers Holdings, LLC

Other Professional, Scientific, and Technical Services


















Senior Secured Loan



12.34%

(L +11.50%)

7/24/2019

4,212


4,141


4,189


2.9






















smarTours, LLC (3)

Tour Operators


















Senior Secured Loan



9.25%

N/A

10/11/2018

2,439


2,418


2,439


1.8

Preferred Equity A (500,000 units) (8)












439


874


0.6











2,439


2,857


3,313


2.4

Southern Technical Institute, LLC (3)

Colleges, Universities, and Professional Schools


















Subordinated Loan



9.0% cash / 4.0% PIK

(L +12.00%)

12/2/2020

3,398


3,326


3,181


2.3

1,764,720 Class SP-1 Units in Southern Technical Holdings, LLC, 15.75% PIK (8)












1,863


1,694


1.2

Class A Warrants (2,174,905 units) (8)












46


33













3,398


5,235


4,908


3.5

Stancor, L.P. (3)

Pump and Pumping Equipment Manufacturing


















Senior Secured  Term Loan



9.75%

(L +9.00%)

8/19/2019

9,818


9,744


9,583


6.7

1,250,000 Class A Units in SCT Holdings, LLC, 8% PIK (8)












1,473


1,092


0.8











9,818


11,217


10,675


7.5

TravelCLICK, Inc.

Computer Systems Design and Related Services


















Senior Secured Term Loan



8.75%

(L +7.75%)

11/8/2021

4,000


3,873


3,734


2.6


9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
September 30, 2016
(Dollar amounts in thousands)


Portfolio Company
Investment Type
 
Industry
 
Interest Rate (1)
 
Spread Above Index (1)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value
 
Percent of Net Assets
United Biologics Holdings, LLC (3)

Medical Laboratories


















Subordinated  Loan



12.0% cash / 2.0% PIK

N/A

3/5/2017

$
4,166


$
4,124


$
3,940


2.8
 %
Subordinated Loan



8.0% PIK

N/A

3/1/2018

6


6


6



Class A-1 Units (2,686 units) and Kicker Units (2,015 units) (8)












9


15



Class A-1 Warrants (2,272 units) and Kicker Warrants (1,704 units) (8)












8


13



Class A-2 Kicker Units (147,086 units) (8)

















Class A Warrants (10,160 units) (8)












67


3



Class B Warrants (15,238 units) (8)












7


4













4,172


4,221


3,981


2.8

VanDeMark Chemical Inc.

Other Basic Inorganic Chemical Manufacturing


















Senior Secured Term Loan



6.50%

(L +5.25%)

11/30/2017

2,440


2,422


2,410


1.7






















Total Non-control/Non-affiliate Investments









161,271


166,634


164,606


115.6

Affiliate Investments




















All Metals Holding, LLC (3)

Metal Service Centers and Other Metal Merchant Wholesalers


















Senior Secured Term Loan



11.00%

N/A

3/31/2021

12,067


11,634


12,034


8.5

Subordinated Loan



14.0% PIK

N/A

11/15/2016

1,234


1,216


1,836


1.3

Performance Fee (8)












79


90


0.1

Common Equity (166,049 member units) (8)












370


492


0.3











13,301


13,299


14,452


10.2

Contract Datascan Holdings, Inc. (3)

Office Machinery and Equipment Rental and Leasing


















Subordinated Loan



12.00%

N/A

2/5/2021

8,000


7,979


7,892


5.6

Preferred Equity A (3,061 shares, 10% PIK) (8)












3,677


3,901


2.7

Common Equity (11,273 shares) (8)












104


607


0.4











8,000


11,760


12,400


8.7


10

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
September 30, 2016
(Dollar amounts in thousands)


Portfolio Company
Investment Type
 
Industry
 
Interest Rate (1)
 
Spread Above Index (1)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value
 
Percent of Net Assets
Master Cutlery, LLC (3)

Sporting and Recreational Goods and Supplies Merchant Wholesalers


















Subordinated Loan



13.00%

N/A

4/17/2020

$
4,742


$
4,720


$
4,621


3.3
 %
3,723 Preferred Equity A units in MC Parent, LLC, 5% cash, 3% PIK (8)












3,807


1,747


1.2

15,564 Common Equity units in MC Parent, LLC (8)



























4,742


8,527


6,368


4.5

NeoSystems Corp. (3)

Other Accounting Services


















Subordinated Loan



10.50% cash / 2.25% PIK

N/A

8/13/2019

4,061


4,039


3,956


2.8

Convertible Preferred Stock (521,962 shares, 10% PIK) (8)












1,227


1,225


0.9











4,061


5,266


5,181


3.7

Pfanstiehl Holdings, Inc. (3)

Pharmaceutical Preparation Manufacturing


















Subordinated Loan (9)



10.50%

N/A

9/29/2021

3,788


3,834


3,845


2.7

Class A Common Equity (400 shares)












217


4,350


3.1











3,788


4,051


8,195


5.8

Strategic Pharma Solutions, Inc. (3)

Other Professional, Scientific, and Technical Services


















Senior Secured Term Loan



11.25%

(L +10.00%)

12/18/2020

8,411


8,340


8,304


5.8

1,191 Class A Units in Strategic Pharma Solutions Holdings, LLC, 6% PIK (8)












1,886


2,147


1.5











8,411


10,226


10,451


7.3

TRS Services, LLC (3)

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance


















Senior Secured Term Loan



9.75% cash / 1.5% PIK

(L +10.25%)

12/10/2019

9,798


9,580


9,563


6.8

329,266 Class AA Units in IGT Holdings, LLC, 15% PIK (8)












333


347


0.2

3,000,000 Class A Units in IGT Holdings, LLC, 11% PIK (8)












3,072


1,869


1.3

3,000,000 Common Units in IGT Holdings, LLC (8)












572















9,798


13,557


11,779


8.3

Total Affiliate Investments









52,101


66,686


68,826


48.5


11

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
September 30, 2016
(Dollar amounts in thousands)


Portfolio Company
Investment Type
 
Industry
 
Interest Rate (1)
 
Spread Above Index (1)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value
 
Percent of Net Assets
Control Investments




















Malabar International (3)

Other Aircraft Parts and Auxiliary Equipment Manufacturing


















Subordinated Loan



11.25% cash / 2.0% PIK

N/A

11/13/2021

$
7,578


$
7,604


$
7,570


5.3
 %
Preferred Stock (1,644 shares, 6% cash)












4,283


4,923


3.5











7,578


11,887


12,493


8.8

Mirage Trailers LLC (3)

Travel Trailer and Camper Manufacturing


















Senior Secured Term Loan



12.50%

(L +11.50%)

11/25/2020

9,962


9,878


9,917


7.0

554 common equity shares in MTE Holding Corp.












3,069


3,327


2.3











9,962


12,947


13,244


9.3

Total Control Investment









17,540


24,834


25,737


18.1






















Total Investments