CUSIP Number | ISIN Number | Principal Amount | Selling Price | Gross Concession | Net Proceeds | Coupon Type | Coupon Rate | Coupon Frequency | Maturity Date | 1st Coupon Date | 1st Coupon Amount | Survivor's Option | Product Ranking |
74348YL41 | US74348YL415 | $2,510,000.00 | 100.000% | 1.250% | $2,478,625.00 | Fixed | 5.750% | Semi-Annual | 3/15/2024 | 9/15/2019 | $26.67 | Yes | Unsecured Notes |
Redemption Information: Callable at 100.000% on 9/15/2019 and every business day thereafter (“Optional Redemption Date”). |
CUSIP Number | ISIN Number | Principal Amount | Selling Price | Gross Concession | Net Proceeds | Coupon Type | Coupon Rate | Coupon Frequency | Maturity Date | 1st Coupon Date | 1st Coupon Amount | Survivor's Option | Product Ranking |
74348YL58 | US74348YL589 | $1,784,000.00 | 100.000% | 1.750% | $1,752,780.00 | Fixed | 6.000% | Semi-Annual | 3/15/2026 | 9/15/2019 | $27.83 | Yes | Unsecured Notes |
Redemption Information: Callable at 100.000% on 9/15/2019 and every business day thereafter (“Optional Redemption Date”). |
CUSIP Number | ISIN Number | Principal Amount | Selling Price | Gross Concession | Net Proceeds | Coupon Type | Coupon Rate | Coupon Frequency | Maturity Date | 1st Coupon Date | 1st Coupon Amount | Survivor's Option | Product Ranking |
74348YL66 | US74348YL662 | $1,575,000.00 | 100.000% | 2.200% | $1,540,350.00 | Fixed | 6.250% | Semi-Annual | 3/15/2029 | 9/15/2019 | $28.99 | Yes | Unsecured Notes |
Redemption Information: Callable at 100.000% on 9/15/2019 and every business day thereafter (“Optional Redemption Date”). |
• | We may offer to sell our Prospect Capital InterNotes® from time to time. The specific terms of the notes will be set prior to the time of sale and described in a pricing supplement. You should read this prospectus supplement, the accompanying prospectus and the applicable pricing supplement carefully before you invest. We may offer other debt securities from time to time other than the notes under our Registration Statement or in private placements. |
• | We may offer the notes to or through agents for resale. The applicable pricing supplement will specify the purchase price, agent discounts and net proceeds of any particular offering of notes. The agents are not required to sell any specific amount of notes but will use their reasonable best efforts to sell the notes. We also may offer the notes directly. We have not set a date for termination of our offering. |
• | The agents have advised us that from time to time they may purchase and sell notes in the secondary market, but they are not obligated to make a market in the notes and may suspend or completely stop that activity at any time. Unless otherwise specified in the applicable pricing supplement, we do not intend to list the notes on any stock exchange. |
Incapital LLC | Citigroup | RBC Capital Markets |
• | our future operating results, |
• | our business prospects and the prospects of our portfolio companies, |
• | the impact of investments that we expect to make, |
• | our contractual arrangements and relationships with third parties, |
• | the dependence of our future success on the general economy and its impact on the industries in which we invest, |
• | the ability of our portfolio companies to achieve their objectives, |
• | difficulty in obtaining financing or raising capital, especially in the current credit and equity environment, |
• | the level and volatility of prevailing interest rates and credit spreads, magnified by the current turmoil in the credit markets, |
• | adverse developments in the availability of desirable loan and investment opportunities whether they are due to competition, regulation or otherwise, |
• | a compression of the yield on our investments and the cost of our liabilities, as well as the level of leverage available to us, |
• | our regulatory structure and tax treatment, including our ability to operate as a business development company and a regulated investment company, |
• | the adequacy of our cash resources and working capital, |
• | the timing of cash flows, if any, from the operations of our portfolio companies, |
• | the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments, |
• | authoritative generally accepted accounting principles or policy changes from such standard-setting bodies as the Financial Accounting Standards Board, the SEC, Internal Revenue Service, the NASDAQ Global Select Market, and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business, and |
• | the risks, uncertainties and other factors we identify in “Risk Factors” and elsewhere in this prospectus supplement and the accompanying prospectus and in our filings with the SEC. |
PROSPECTUS SUPPLEMENT | PAGE |
PROSPECTUS | PAGE |
• | $0.06 per share for February 2019 to holders of record on February 28, 2019 with a payment date of March 21, 2019. |
• | $0.06 per share for March 2019 to holders of record on March 29, 2019 with a payment date of April 18, 2019. |
• | $0.06 per share for April 2019 to holders of record on April 30, 2019 with a payment date of May 23, 2019. |
Issuer | Prospect Capital Corporation | |
Purchasing Agent | Incapital LLC | |
Agents | Citigroup Global Markets Inc. and RBC Capital Markets, LLC. From time to time, we may sell the notes to or through additional agents. | |
Title of Notes | Prospect Capital InterNotes® | |
Amount | We may issue notes from time to time in various offerings up to $1.5 billion, the aggregate principal amount authorized by our board of directors for notes. As of February 7, 2019, approximately $1.3 billion aggregate principal amount of notes has been issued. We have, from time to time, repurchased certain notes and, therefore, as of February 7, 2019, $713.6 million aggregate principal amount of notes were outstanding. There are no limitations on our ability to issue additional indebtedness in the form of Prospect Capital InterNotes® or otherwise other than under the 1940 Act and the asset coverage requirement under our credit facility. | |
Denominations | The notes will be issued and sold in denominations of $1,000 and multiples of $1,000 (unless otherwise stated in the pricing supplement). | |
Status | The notes will be our direct unsecured senior obligations and will rank equally in right of payment with all of our other unsecured senior indebtedness from time to time outstanding. | |
Maturities | Each note will mature 12 months or more from its date of original issuance. | |
Interest | Notes may be issued with a fixed or floating interest rate; a floating interest rate note will be based on the London Interbank Offered Rate (“LIBOR”). | |
Interest on each fixed or floating interest rate note will be payable either monthly, quarterly, semi-annually or annually on each interest payment date and on the stated maturity date. Interest also will be paid on the date of redemption or repayment if a note is redeemed or repaid prior to its stated maturity in accordance with its terms. | ||
Interest on the notes will be computed on the basis of a 360-day year of twelve 30-day months, often referred to as the 30/360 (ISDA) day count convention. | ||
Principal | The principal amount of each note will be payable on its stated maturity date at the corporate trust office of the paying agent or at any other place we may designate. | |
Redemption and Repayment | Unless otherwise stated in the applicable pricing supplement, a note will not be redeemable at our option or be repayable at the option of the holder prior to its stated maturity date. The notes will not be subject to any sinking fund. | |
Survivor’s Option | Specific notes may contain a provision permitting the optional repayment of those notes prior to stated maturity, if requested by the authorized representative of the beneficial owner of those notes, following the death of the beneficial owner of the notes, so long as the notes were owned by the beneficial owner or his or her estate at least six months prior to the request. This feature is referred to as a “Survivor’s Option.” Your notes will not be repaid in this manner unless the pricing supplement for your notes provides for the Survivor’s Option. If the pricing supplement for your notes provides for the Survivor’s Option, your right to exercise the Survivor’s Option will be subject to limits set by us on (1) the permitted dollar amount of total exercises by all holders of notes in any calendar year, and (2) the permitted dollar amount of an individual exercise by a holder of a note in any calendar year. Additional details on the Survivor’s Option are described in the section entitled “Description of Notes—Survivor’s Option.” | |
Sale and Clearance | We will sell notes in the United States only. Notes will be issued in book-entry only form and will clear through The Depository Trust Company. We do not intend to issue notes in certificated form. | |
Trustee | The trustee for the notes is U.S. Bank National Association, under an indenture dated as of February 16, 2012, as amended and as supplemented from time to time. | |
Selling Group | The agents and dealers comprising the selling group are broker-dealers and securities firms. Each of the Purchasing Agent, Citigroup Global Markets Inc. and RBC Capital Markets, LLC entered into a Seventh Amended and Restated Selling Agent Agreement with us dated November 9, 2018 (as amended, the “Selling Agent Agreement”). Additional agents appointed by us from time to time in connection with the offering of the notes contemplated by this prospectus supplement will become parties to the Selling Agent Agreement. Dealers who are members of the selling group have executed a Master Selected Dealer Agreement with the Purchasing Agent. The agents and the dealers have agreed to market and sell the notes in accordance with the terms of those respective agreements and all other applicable laws and regulations. You may contact the Purchasing Agent at info@incapital.com for a list of selling group members. |
For the Three Months Ended December 31, | For the Six Months Ended December 31, | For the Year Ended June 30, | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||
(in thousands except data relating to shares, per share and number of portfolio companies) | ||||||||||||||||||||||||||||||||||||
Performance Data: | ||||||||||||||||||||||||||||||||||||
Total interest income | $ | 157,994 | $ | 153,382 | $ | 317,436 | $ | 301,467 | $ | 607,012 | $ | 668,717 | $ | 731,618 | $ | 748,974 | $ | 613,741 | ||||||||||||||||||
Total dividend income | 13,266 | 326 | 28,193 | 870 | 13,046 | 5,679 | 26,501 | 7,663 | 26,837 | |||||||||||||||||||||||||||
Total other income | 16,623 | 8,692 | 22,676 | 18,642 | 37,787 | 26,650 | 33,854 | 34,447 | 71,713 | |||||||||||||||||||||||||||
Total Investment Income | 187,883 | 162,400 | 368,305 | 320,979 | 657,845 | 701,046 | 791,973 | 791,084 | 712,291 | |||||||||||||||||||||||||||
Interest and credit facility expenses | (40,656 | ) | (39,347 | ) | (78,564 | ) | (80,382 | ) | (155,039 | ) | (164,848 | ) | (167,719 | ) | (170,660 | ) | (130,103 | ) | ||||||||||||||||||
Investment advisory expense | (53,390 | ) | (47,857 | ) | (104,637 | ) | (93,953 | ) | (189,759 | ) | (199,394 | ) | (219,305 | ) | (225,277 | ) | (198,296 | ) | ||||||||||||||||||
Other expenses | (13,026 | ) | (2,004 | ) | (19,134 | ) | (9,720 | ) | (26,197 | ) | (30,722 | ) | (33,821 | ) | (32,400 | ) | (26,669 | ) | ||||||||||||||||||
Total Operating Expenses | (107,072 | ) | (89,208 | ) | (202,335 | ) | (184,055 | ) | (370,995 | ) | (394,964 | ) | (420,845 | ) | (428,337 | ) | (355,068 | ) | ||||||||||||||||||
Net Investment Income | 80,811 | 73,192 | 165,970 | 136,924 | 286,850 | 306,082 | 371,128 | 362,747 | 357,223 | |||||||||||||||||||||||||||
Net realized and change in unrealized gains (losses) | (148,200 | ) | 48,535 | (149,564 | ) | (3,224 | ) | 13,013 | (53,176 | ) | (267,766 | ) | (16,408 | ) | (38,203 | ) | ||||||||||||||||||||
Net increase in Net Assets from Operations | $ | (67,389 | ) | $ | 121,727 | $ | 16,406 | $ | 133,700 | $ | 299,863 | $ | 252,906 | $ | 103,362 | $ | 346,339 | $ | 319,020 | |||||||||||||||||
Per Share Data: | ||||||||||||||||||||||||||||||||||||
Net Increase in Net Assets from Operations(1) | $ | (0.18 | ) | $ | 0.34 | $ | 0.04 | $ | 0.37 | $ | 0.83 | $ | 0.70 | $ | 0.29 | $ | 0.98 | $ | 1.06 | |||||||||||||||||
Dividends declared per share | $ | (0.18 | ) | $ | (0.18 | ) | $ | (0.36 | ) | $ | (0.41 | ) | $ | (0.77 | ) | $ | (1.00 | ) | $ | (1.00 | ) | $ | (1.19 | ) | $ | (1.32 | ) | |||||||||
Weighted average shares of common stock outstanding | 365,591,722 | 360,473,705 | 365,187,429 | 360,322,770 | 361,456,075 | 358,841,714 | 356,134,297 | 353,648,522 | 300,283,941 | |||||||||||||||||||||||||||
Assets and Liabilities Data: | ||||||||||||||||||||||||||||||||||||
Investments at Fair Value | $ | 5,842,570 | $ | 5,421,132 | $ | 5,842,570 | $ | 5,421,132 | 5,727,279 | $ | 5,838,305 | $ | 5,897,708 | $ | 6,609,558 | $ | 6,253,739 | |||||||||||||||||||
Other Assets(4) | 127,297 | 496,381 | 127,297 | 496,381 | 111,541 | 334,484 | 338,473 | 144,356 | 166,520 | |||||||||||||||||||||||||||
Total Assets(4) | 5,969,867 | 5,917,513 | 5,969,867 | 5,917,513 | 5,838,820 | 6,172,789 | 6,236,181 | 6,753,914 | 6,420,259 | |||||||||||||||||||||||||||
Revolving Credit Facility | 297,000 | — | 297,000 | — | 37,000 | — | — | 368,700 | 92,000 | |||||||||||||||||||||||||||
Convertible notes(4) | 798,011 | 889,233 | 798,011 | 889,233 | 809,073 | 937,641 | 1,074,361 | 1,218,226 | 1,219,676 | |||||||||||||||||||||||||||
Public notes (4) | 742,762 | 739,318 | 742,762 | 739,318 | 716,810 | 738,300 | 699,368 | 541,490 | 637,584 | |||||||||||||||||||||||||||
Prospect Capital InterNotes®(4) | 714,018 | 824,383 | 714,018 | 824,383 | 748,926 | 966,254 | 893,210 | 811,180 | 766,781 | |||||||||||||||||||||||||||
Due to Prospect Administration and Prospect Capital Management | 53,086 | 49,564 | 53,086 | 49,564 | 51,257 | 50,159 | 55,914 | 6,788 | 2,211 | |||||||||||||||||||||||||||
Other liabilities | 61,815 | 66,603 | 61,815 | 66,603 | 68,707 | 125,483 | 77,411 | 104,481 | 83,825 | |||||||||||||||||||||||||||
Total Liabilities(4) | 2,666,692 | 2,569,101 | 2,666,692 | 2,569,101 | 2,431,773 | 2,817,837 | 2,800,264 | 3,050,865 | 2,802,077 | |||||||||||||||||||||||||||
Net Assets | $ | 3,303,175 | $ | 3,348,412 | $ | 3,303,175 | $ | 3,348,412 | $ | 3,407,047 | $ | 3,354,952 | $ | 3,435,917 | $ | 3,703,049 | $ | 3,618,182 | ||||||||||||||||||
Investment Activity Data: | ||||||||||||||||||||||||||||||||||||
No. of portfolio companies at period end | 139 | 122 | 139 | 122 | 135 | 121 | 125 | 131 | 142 | |||||||||||||||||||||||||||
Acquisitions | $ | 226,252 | $ | 738,737 | $ | 480,894 | $ | 960,888 | $ | 1,730,657 | $ | 1,489,470 | $ | 979,102 | $ | 1,867,477 | $ | 2,933,365 | ||||||||||||||||||
Sales, repayments, and other disposals | $ | 163,502 | $ | 1,042,269 | $ | 220,110 | $ | 1,353,163 | $ | 1,831,286 | $ | 1,413,882 | $ | 1,338,875 | $ | 1,411,562 | $ | 767,978 | ||||||||||||||||||
Total return based on market value(2) | (11.54 | )% | 3.01 | % | (0.90 | )% | (11.82 | )% | (7.42 | )% | 16.80 | % | 21.84 | % | (20.84 | )% | 10.88 | % | ||||||||||||||||||
Total return based on net asset value(2) | (1.29 | )% | 4.51 | % | 1.67 | % | 5.78 | % | 12.39 | % | 8.98 | % | 7.15 | % | 11.47 | % | 10.97 | % | ||||||||||||||||||
Weighted average yield on debt portfolio at period end(3) | 13.1 | % | 12.5 | % | 13.1 | % | 12.5 | % | 13.0 | % | 12.2 | % | 13.2 | % | 12.7 | % | 12.1 | % | ||||||||||||||||||
Weighted average yield on total portfolio at period end | 10.7 | % | 10.3 | % | 10.7 | % | 10.3 | % | 10.5 | % | 10.4 | % | 12.0 | % | 11.9 | % | 11.9 | % |
(1) | Per share data is based on the weighted average number of common shares outstanding for the year/period presented (except for dividends to shareholders which is based on actual rate per share). |
(2) | Total return based on market value is based on the change in market price per share between the opening and ending market prices per share in each year/period and assumes that dividends are reinvested in accordance with our dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in each year/period and assumes that dividends are reinvested in accordance with our dividend reinvestment plan. For a period less than a year, the return is not annualized. |
(3) | Excludes equity investments and non-performing loans. |
(4) | We have changed our method of presentation relating to debt issuance costs in accordance with ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30). Unamortized deferred financing costs of $40,526, $44,140, and $57,010 previously reported as an asset on the Consolidated Statements of Assets and Liabilities as of June 30, 2016, 2015, and 2014, respectively, have been reclassified as a direct deduction to the respective Unsecured Notes. See Critical Accounting Policies and Estimates for further discussion. |
(5) | Includes equity investments and non-performing loans. |
• | making it more difficult for us to meet our payment and other obligations under the notes and our other outstanding debt; |
• | resulting in an event of default if we fail to comply with the financial and other restrictive covenants contained in our debt agreements, which event of default could result in substantially all of our debt becoming immediately due and payable; |
• | reducing the availability of our cash flow to fund investments, acquisitions and other general corporate purposes, and limiting our ability to obtain additional financing for these purposes; |
• | subjecting us to the risk of increased sensitivity to interest rate increases on our indebtedness with variable interest rates, including borrowings under our credit facility; and |
• | limiting our flexibility in planning for, or reacting to, and increasing our vulnerability to, changes in our business, the industry in which we operate and the general economy. |
• | issue securities or otherwise incur additional indebtedness or other obligations, including (1) any indebtedness or other obligations that would be equal in right of payment to the notes, (2) any indebtedness or other obligations that would be secured and therefore rank effectively senior in right of payment to the notes to the extent of the values of the assets securing such debt, (3) indebtedness of ours that is guaranteed by one or more of our subsidiaries and which therefore is structurally senior to the notes and (4) securities, indebtedness or obligations issued or incurred by our subsidiaries that would be senior to our equity interests in our subsidiaries and therefore rank structurally senior to the notes with respect to the assets of our subsidiaries, in each case other than an incurrence of indebtedness or other obligation that would cause a violation of Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions; |
• | pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior in right of payment to the notes; |
• | sell assets (other than certain limited restrictions on our ability to consolidate, merge or sell all or substantially all of our assets); |
• | enter into transactions with affiliates; |
• | create liens (including liens on the shares of our subsidiaries) or enter into sale and leaseback transactions; |
• | make investments; or |
• | create restrictions on the payment of dividends or other amounts to us from our subsidiaries. |
• | the method of calculating the principal and interest for the notes; |
• | the time remaining to the stated maturity of the notes; |
• | the outstanding amount of the notes; |
• | the redemption or repayment features of the notes; and |
• | the level, direction and volatility of interest rates generally. |
• | restrictions on the level of indebtedness that we are permitted to incur in relation to the value of our assets; |
• | restrictions on our ability to incur liens; and |
• | maintenance of a minimum level of stockholders’ equity. |
• | the notes will be our direct unsecured senior obligations and will rank equally with all of our other unsecured senior indebtedness from time to time outstanding; |
• | the notes may be offered from time to time by us through the Purchasing Agent or the agents and each note will mature on a day that is at least 12 months from its date of original issuance; |
• | each note may be issued with a fixed or floating interest rate; any floating interest rate will be based on LIBOR; |
• | the notes will not be subject to any sinking fund; and |
• | the minimum denomination of the notes will be $1,000 (unless otherwise stated in the pricing supplement). |
• | the stated maturity; |
• | the denomination of your notes; |
• | the price at which we originally issue your notes, expressed as a percentage of the principal amount, and the original issue date; |
• | whether your notes are fixed rate notes or floating rate notes; |
• | if your notes are fixed rate notes, the annual rate at which your notes will bear interest, or the periodic rates in the case of notes that bear different rates at different times during the term of the notes, and the interest payment dates, if different from those stated below under “—Interest Rates—Fixed Rate Notes;” |
• | if your notes are floating rate notes, the interest rate, spread or spread multiplier or initial base rate, maximum rate and/or minimum rate; if there is more than one spread to be applied at different times during the term of the notes for your interest rate, which spread during which periods applies to your notes; and the interest reset, determination, calculation and payment dates, all of which we describe under “—Interest Rates—Floating Rate Notes” below; |
• | if applicable, the circumstances under which your notes may be redeemed at our option or repaid at the holder’s option before the stated maturity, including any redemption commencement date, repayment date(s), redemption price(s) and redemption period(s), all of which we describe under “—Redemption and Repayment” below; |
• | whether the authorized representative of the holder of a beneficial interest in the notes will have the right to seek repayment upon the death of the holder as described under “—Survivor’s Option;” |
• | any special U.S. federal income tax consequences of the purchase, ownership and disposition of the notes; and |
• | any other significant terms of your notes, which could be different from those described in this prospectus supplement and the accompanying prospectus, but in no event inconsistent with the indenture. |
• | by adding or subtracting a specified number of basis points, called the spread, with one basis point being 0.01%; or |
• | by multiplying the base rate by a specified percentage, called the spread multiplier. |
• | a maximum rate—i.e., a specified upper limit that the actual interest rate in effect at any time may not exceed; and/or |
• | a minimum rate—i.e., a specified lower limit that the actual interest rate in effect at any time may not fall below. |
• | for floating rate notes that reset daily, each London business day (as defined below); |
• | for floating rate notes that reset weekly, the Wednesday of each week; |
• | for floating rate notes that reset monthly, the third Wednesday of each month; |
• | for floating rate notes that reset quarterly, the third Wednesday of each of four months of each year as specified in your pricing supplement; |
• | for floating rate notes that reset semi-annually, the third Wednesday of each of two months of each year as specified in your pricing supplement; and |
• | for floating rate notes that reset annually, the third Wednesday of one month of each year as specified in your pricing supplement. |
• | If the rate described above does not so appear on the Reuters screen LIBOR page, then LIBOR will be determined on the basis of the rates at which deposits in U.S. dollars are offered by four major banks in the London interbank market selected by the calculation agent at approximately 11:00 A.M., London time, on the relevant LIBOR interest determination date, to prime banks in the London interbank market for a period of the specified index maturity, beginning on the relevant interest reset date, and in a representative amount. The calculation agent will request the principal London office of each of these major banks to provide a quotation of its rate. If at least two quotations are provided, LIBOR for the relevant interest reset date will be the arithmetic mean of the quotations. |
• | If fewer than two of the requested quotations described above are provided, LIBOR for the relevant interest reset date will be the arithmetic mean of the rates quoted by major banks in New York City selected by the calculation agent, at approximately 11:00 A.M., New York City time (or the time in the relevant principal financial center), on the relevant interest reset date, for loans in U.S. dollars (or the index currency) to leading European banks for a period of the specified index maturity, beginning on the relevant interest reset date, and in a representative amount. |
• | If no quotation is provided as described in the preceding paragraph, then the calculation agent, after consulting such sources as it deems comparable to any of the foregoing quotations or display page, or any such source as it deems reasonable from which to estimate LIBOR or any of the foregoing lending rates, shall determine LIBOR for that interest reset date in its sole discretion. |
• | For the purpose of this section, we define the term “index maturity” as the interest rate period of LIBOR on which the interest rate formula is based as specified in your pricing supplement. |
Interest Payment Frequency | Interest Payment Dates | |
Monthly | Fifteenth day of each calendar month, beginning in the first calendar month following the month the note was issued. | |
Quarterly | Fifteenth day of every third month, beginning in the third calendar month following the month the note was issued. | |
Semi-annually | Fifteenth day of every sixth month, beginning in the sixth calendar month following the month the note was issued. | |
Annually | Fifteenth day of every twelfth month, beginning in the twelfth calendar month following the month the note was issued. |
• | a written instruction to such broker or other entity to notify DTC of the authorized representative’s desire to obtain repayment pursuant to exercise of the Survivor’s Option; |
• | appropriate evidence satisfactory to the trustee (a) that the deceased was the beneficial owner of the note at the time of death and his or her interest in the note was owned by the deceased beneficial owner or his or her estate at least six months prior to the request for repayment, (b) that the death of the beneficial owner has occurred, (c) of the date of death of the beneficial owner, and (d) that the representative has authority to act on behalf of the beneficial owner; |
• | if the interest in the note is held by a nominee of the deceased beneficial owner, a certificate satisfactory to the trustee from the nominee attesting to the deceased’s beneficial ownership of such note; |
• | written request for repayment signed by the authorized representative of the deceased beneficial owner with the signature guaranteed by a member firm of a registered national securities exchange or of the Financial Industry Regulatory Authority, Inc. or a commercial bank or trust company having an office or correspondent in the United States; |
• | if applicable, a properly executed assignment or endorsement; |
• | tax waivers and any other instruments or documents that the trustee reasonably requires in order to establish the validity of the beneficial ownership of the note and the claimant’s entitlement to payment; and |
• | any additional information the trustee reasonably requires to evidence satisfaction of any conditions to the exercise of the Survivor’s Option or to document beneficial ownership or authority to make the election and to cause the repayment of the note. |
December 31, 2018 | June 30, 2018 | ||||||||||||||||||||
Level of Control | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
Control Investments | $ | 2,381,352 | 39.1 | % | $ | 2,432,766 | 41.6 | % | $ | 2,300,526 | 39.5 | % | $ | 2,404,326 | 42.0 | % | |||||
Affiliate Investments | 176,997 | 2.9 | % | 91,861 | 1.6 | % | 55,637 | 0.9 | % | 58,436 | 1.0 | % | |||||||||
Non-Control/Non-Affiliate Investments | 3,538,047 | 58.0 | % | 3,317,943 | 56.8 | % | 3,475,295 | 59.6 | % | 3,264,517 | 57.0 | % | |||||||||
Total Investments | $ | 6,096,396 | 100.0 | % | $ | 5,842,570 | 100.0 | % | $ | 5,831,458 | 100.0 | % | $ | 5,727,279 | 100.0 | % |
December 31, 2018 | June 30, 2018 | ||||||||||||||||||||
Type of Investment | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
Revolving Line of Credit | $ | 28,597 | 0.5 | % | $ | 28,508 | 0.5 | % | $ | 38,659 | 0.7 | % | $ | 38,559 | 0.7 | % | |||||
Senior Secured Debt | 2,860,986 | 47.0 | % | 2,670,438 | 45.7 | % | 2,602,018 | 44.6 | % | 2,481,353 | 43.3 | % | |||||||||
Subordinated Secured Debt | 1,437,437 | 23.6 | % | 1,347,359 | 23.1 | % | 1,318,028 | 22.6 | % | 1,260,525 | 22.0 | % | |||||||||
Subordinated Unsecured Debt | 38,879 | 0.6 | % | 26,033 | 0.4 | % | 38,548 | 0.7 | % | 32,945 | 0.6 | % | |||||||||
Small Business Loans | — | — | % | — | — | % | 30 | — | % | 17 | — | % | |||||||||
CLO Debt | 44,783 | 0.7 | % | 47,636 | 0.8 | % | 6,159 | 0.1 | % | 6,159 | 0.1 | % | |||||||||
CLO Residual Interest | 1,097,830 | 18.0 | % | 889,491 | 15.2 | % | 1,096,768 | 18.8 | % | 954,035 | 16.7 | % | |||||||||
Preferred Stock | 92,346 | 1.5 | % | 80,525 | 1.4 | % | 92,346 | 1.6 | % | 75,986 | 1.3 | % | |||||||||
Common Stock | 301,596 | 4.9 | % | 401,165 | 6.9 | % | 445,364 | 7.6 | % | 517,858 | 9.0 | % | |||||||||
Membership Interest | 193,942 | 3.2 | % | 251,923 | 4.3 | % | 193,538 | 3.3 | % | 257,799 | 4.5 | % | |||||||||
Participating Interest(1) | — | — | % | 98,541 | 1.7 | % | — | — | % | 101,126 | 1.8 | % | |||||||||
Escrow Receivable | — | — | % | 951 | — | % | — | — | % | 917 | — | % | |||||||||
Total Investments | $ | 6,096,396 | 100.0 | % | $ | 5,842,570 | 100.0 | % | $ | 5,831,458 | 100.0 | % | $ | 5,727,279 | 100.0 | % |
(1) | Participating Interest includes our participating equity investments, such as net profits interests, net operating income interests, net revenue interests, and overriding royalty interests. |
December 31, 2018 | June 30, 2018 | ||||||||||||||||||||
Type of Investment | Cost | % | Fair Value | % | Cost | % | Fair Value | % | |||||||||||||
First Lien | $ | 2,887,811 | 52.5 | % | $ | 2,697,174 | 53.8 | % | $ | 2,632,843 | 51.6 | % | $ | 2,512,078 | 52.6 | % | |||||
Second Lien | 1,439,209 | 26.1 | % | 1,349,131 | 26.9 | % | 1,325,862 | 26.0 | % | 1,268,359 | 26.6 | % | |||||||||
Unsecured | 38,879 | 0.7 | % | 26,033 | 0.5 | % | 38,548 | 0.8 | % | 32,945 | 0.7 | % | |||||||||
Small Business Loans | — | — | % | — | — | % | 30 | — | % | 17 | — | % | |||||||||
CLO Debt | 44,783 | 0.8 | % | 47,636 | 1.0 | % | 6,159 | 0.1 | % | 6,159 | 0.1 | % | |||||||||
CLO Residual Interest | 1,097,830 | 19.9 | % | 889,491 | 17.8 | % | 1,096,768 | 21.5 | % | 954,035 | 20.0 | % | |||||||||
Total Interest Bearing Investments | $ | 5,508,512 | 100.0 | % | $ | 5,009,465 | 100.0 | % | $ | 5,100,210 | 100.0 | % | $ | 4,773,593 | 100.0 | % |
December 31, 2018 | June 30, 2018 | ||||||||||||||||||||
Geographic Location | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
Canada | $ | 5,974 | 0.1 | % | $ | 5,957 | 0.1 | % | $ | 16,809 | 0.3 | % | $ | 17,816 | 0.3 | % | |||||
Cayman Islands | 1,142,613 | 18.7 | % | 937,127 | 16.0 | % | 1,102,927 | 18.9 | % | 960,194 | 16.8 | % | |||||||||
France | 12,654 | 0.2 | % | 12,654 | 0.2 | % | 12,490 | 0.2 | % | 12,334 | 0.2 | % | |||||||||
MidAtlantic US | 552,002 | 9.1 | % | 550,624 | 9.4 | % | 410,644 | 7.0 | % | 410,644 | 7.2 | % | |||||||||
Midwest US | 412,820 | 6.8 | % | 496,882 | 8.5 | % | 395,622 | 6.8 | % | 413,758 | 7.2 | % | |||||||||
Northeast US | 716,996 | 11.8 | % | 773,472 | 13.2 | % | 677,204 | 11.6 | % | 701,851 | 12.3 | % | |||||||||
Northwest US | 108,317 | 1.8 | % | 128,560 | 2.2 | % | 103,906 | 1.8 | % | 90,288 | 1.6 | % | |||||||||
Puerto Rico | 81,306 | 1.3 | % | 79,496 | 1.4 | % | 84,713 | 1.5 | % | 83,507 | 1.5 | % | |||||||||
Southeast US | 1,233,827 | 20.2 | % | 1,353,239 | 23.2 | % | 1,243,430 | 21.3 | % | 1,524,379 | 26.6 | % | |||||||||
Southwest US | 718,372 | 11.8 | % | 595,323 | 10.2 | % | 723,038 | 12.4 | % | 599,914 | 10.4 | % | |||||||||
Western US | 1,111,515 | 18.2 | % | 909,236 | 15.6 | % | 1,060,675 | 18.2 | % | 912,594 | 15.9 | % | |||||||||
Total Investments | $ | 6,096,396 | 100.0 | % | $ | 5,842,570 | 100.0 | % | $ | 5,831,458 | 100.0 | % | $ | 5,727,279 | 100.0 | % |
December 31, 2018 | June 30, 2018 | ||||||||||||||||||||
Industry | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
Aerospace & Defense | $ | 73,561 | 1.2 | % | $ | 91,820 | 1.6 | % | $ | 69,837 | 1.2 | % | $ | 82,278 | 1.4 | % | |||||
Air Freight & Logistics | 12,316 | 0.2 | % | 12,316 | 0.2 | % | — | — | % | — | — | % | |||||||||
Auto Components | 25,409 | 0.4 | % | 25,409 | 0.4 | % | 12,681 | 0.2 | % | 12,887 | 0.2 | % | |||||||||
Building Products | 19,830 | 0.3 | % | 19,249 | 0.3 | % | 9,905 | 0.2 | % | 10,000 | 0.2 | % | |||||||||
Capital Markets | 21,534 | 0.4 | % | 21,673 | 0.4 | % | 19,799 | 0.3 | % | 20,000 | 0.3 | % | |||||||||
Commercial Services & Supplies | 363,530 | 6.0 | % | 295,991 | 5.2 | % | 386,187 | 6.6 | % | 330,024 | 5.8 | % | |||||||||
Communications Equipment | 47,877 | 0.8 | % | 47,171 | 0.8 | % | 39,860 | 0.7 | % | 40,000 | 0.7 | % | |||||||||
Construction & Engineering | 69,515 | 1.1 | % | 89,758 | 1.5 | % | 64,415 | 1.1 | % | 50,797 | 0.9 | % | |||||||||
Consumer Finance | 474,805 | 7.8 | % | 561,200 | 9.6 | % | 485,381 | 8.3 | % | 586,978 | 10.2 | % | |||||||||
Distributors | 300,824 | 4.9 | % | 215,541 | 3.7 | % | 470,750 | 8.1 | % | 402,465 | 7.0 | % | |||||||||
Diversified Consumer Services | 149,218 | 2.4 | % | 136,544 | 2.4 | % | 173,695 | 3.0 | % | 163,152 | 2.8 | % | |||||||||
Diversified Telecommunication Services | 24,567 | 0.4 | % | 24,567 | 0.4 | % | — | — | % | — | — | % | |||||||||
Electronic Equipment, Instruments & Components | 39,776 | 0.8 | % | 53,936 | 1.0 | % | 54,805 | 0.9 | % | 62,964 | 1.1 | % | |||||||||
Energy Equipment & Services | 261,397 | 4.3 | % | 174,014 | 3.0 | % | 257,371 | 4.4 | % | 170,574 | 3.0 | % | |||||||||
Entertainment | 43,267 | 0.7 | % | 43,314 | 0.7 | % | — | — | % | — | — | % | |||||||||
Equity Real Estate Investment Trusts (REITs) | 496,440 | 8.1 | % | 805,752 | 13.8 | % | 499,858 | 8.6 | % | 811,915 | 14.2 | % | |||||||||
Food Products | 34,709 | 0.7 | % | 34,478 | 0.7 | % | 9,884 | 0.2 | % | 9,886 | 0.2 | % | |||||||||
Health Care Equipment & Supplies | 42,412 | 0.7 | % | 40,926 | 0.7 | % | 43,279 | 0.7 | % | 43,279 | 0.8 | % | |||||||||
Health Care Providers & Services | 475,938 | 7.8 | % | 453,888 | 7.8 | % | 421,198 | 7.2 | % | 404,130 | 7.1 | % | |||||||||
Hotels & Personal Products | — | — | % | — | — | % | 24,938 | 0.4 | % | 24,938 | 0.4 | % | |||||||||
Hotels, Restaurants & Leisure | 36,921 | 0.6 | % | 36,857 | 0.6 | % | 37,295 | 0.6 | % | 37,295 | 0.6 | % | |||||||||
Household Products | 24,813 | 0.4 | % | 24,813 | 0.4 | % | — | — | % | — | — | % | |||||||||
Household Durables | 38,660 | 0.6 | % | 36,656 | 0.6 | % | 42,539 | 0.7 | % | 41,623 | 0.7 | % | |||||||||
Insurance | 2,987 | — | % | 2,899 | — | % | 2,986 | 0.1 | % | 2,986 | 0.1 | % | |||||||||
Interactive Media & Services | 48,449 | 0.8 | % | 48,449 | 0.8 | % | — | — | % | — | — | % | |||||||||
Internet & Direct Marketing Retail | — | — | % | — | — | % | 39,813 | 0.7 | % | 39,813 | 0.7 | % | |||||||||
Internet Software & Services | — | — | % | — | — | % | 229,717 | 4.0 | % | 229,791 | 4.0 | % | |||||||||
IT Services | 304,435 | 5.0 | % | 304,169 | 5.2 | % | 182,183 | 3.1 | % | 182,578 | 3.2 | % |
December 31, 2018 | June 30, 2018 | ||||||||||||||||||||
Industry | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
Leisure Products | 40,454 | 0.7 | % | 40,537 | 0.7 | % | 45,531 | 0.8 | % | 45,626 | 0.8 | % | |||||||||
Machinery | 35,488 | 0.6 | % | 24,670 | 0.4 | % | 35,488 | 0.6 | % | 31,886 | 0.6 | % | |||||||||
Media | 154,078 | 2.5 | % | 152,574 | 2.6 | % | 143,063 | 2.5 | % | 140,365 | 2.4 | % | |||||||||
Online Lending | 305,949 | 5.0 | % | 210,707 | 3.6 | % | 327,159 | 5.6 | % | 243,078 | 4.2 | % | |||||||||
Paper & Forest Products | 11,345 | 0.2 | % | 11,345 | 0.2 | % | 11,328 | 0.2 | % | 11,226 | 0.2 | % | |||||||||
Personal Products | 228,325 | 3.7 | % | 132,530 | 2.3 | % | 228,575 | 3.9 | % | 165,020 | 2.9 | % | |||||||||
Pharmaceuticals | 11,883 | 0.2 | % | 12,000 | 0.2 | % | 11,882 | 0.2 | % | 12,000 | 0.2 | % | |||||||||
Professional Services | 186,666 | 3.1 | % | 188,783 | 3.2 | % | 74,272 | 1.3 | % | 76,991 | 1.3 | % | |||||||||
Real Estate Management & Development | 41,370 | 0.7 | % | 41,370 | 0.7 | % | 41,860 | 0.7 | % | 41,860 | 0.7 | % | |||||||||
Software | 69,455 | 1.1 | % | 69,302 | 1.2 | % | 66,435 | 1.1 | % | 67,265 | 1.2 | % | |||||||||
Technology Hardware, Storage & Peripherals | 12,392 | 0.2 | % | 12,114 | 0.2 | % | 12,384 | 0.2 | % | 12,500 | 0.2 | % | |||||||||
Textiles, Apparel & Luxury Goods | 317,709 | 5.2 | % | 329,764 | 5.6 | % | 46,429 | 0.8 | % | 60,220 | 1.1 | % | |||||||||
Tobacco | 14,405 | 0.2 | % | 14,405 | 0.2 | % | 14,392 | 0.3 | % | 14,392 | 0.3 | % | |||||||||
Trading Companies & Distributors | 63,538 | 1.0 | % | 36,832 | 0.6 | % | 63,863 | 1.1 | % | 56,199 | 1.0 | % | |||||||||
Transportation Infrastructure | 27,536 | 0.5 | % | 27,120 | 0.5 | % | 27,494 | 0.5 | % | 28,104 | 0.5 | % | |||||||||
Subtotal | $ | 4,953,783 | 81.3 | % | $ | 4,905,443 | 84.0 | % | $ | 4,728,531 | 81.1 | % | $ | 4,767,085 | 83.2 | % | |||||
Structured Finance(1) | $ | 1,142,613 | 18.7 | % | $ | 937,127 | 16.0 | % | $ | 1,102,927 | 18.9 | % | $ | 960,194 | 16.8 | % | |||||
Total Investments | $ | 6,096,396 | 100.0 | % | $ | 5,842,570 | 100.0 | % | $ | 5,831,458 | 100.0 | % | $ | 5,727,279 | 100.0 | % |
Quarter Ended | Acquisitions(1) | Dispositions(2) | ||||
September 30, 2016 | 347,150 | 114,331 | ||||
December 31, 2016 | 469,537 | 644,995 | ||||
March 31, 2017 | 449,607 | 302,513 | ||||
June 30, 2017 | 223,176 | 352,043 | ||||
September 30, 2017 | 222,151 | 310,894 | ||||
December 31, 2017 | 738,737 | 1,041,126 | ||||
March 31, 2018 | 429,928 | 116,978 | ||||
June 30, 2018 | 339,841 | 362,287 | ||||
September 30, 2018 | 254,642 | 56,608 | ||||
December 31, 2018 | 226,252 | 163,502 |
(1) | Includes investments in new portfolio companies, follow-on investments in existing portfolio companies, refinancings and PIK interest. |
(2) | Includes sales, scheduled principal payments, prepayments and refinancings. |
Loan Type | Outstanding Principal Balance | Fair Value | Interest Rate Range | Weighted Average Interest Rate* | ||||||||
Super Prime | $ | 14,681 | $ | 14,254 | 4.0% - 24.1% | 12.5% | ||||||
Prime | 40,595 | 38,015 | 4.0% - 36.0% | 17.2% | ||||||||
Near Prime | 140,988 | 128,809 | 6.0% - 36.0% | 26.8% |
No. | Property Name | City | Acquisition Date | Purchase Price | Mortgage Outstanding | |||||||||
1 | Filet of Chicken | Forest Park, GA | 10/24/2012 | $ | 7,400 | $ | — | |||||||
2 | Lofton Place, LLC | Tampa, FL | 4/30/2013 | 26,000 | 20,102 | |||||||||
3 | Arlington Park Marietta, LLC | Marietta, GA | 5/8/2013 | 14,850 | 9,570 | |||||||||
4 | NPRC Carroll Resort, LLC | Pembroke Pines, FL | 6/24/2013 | 225,000 | 174,302 | |||||||||
5 | Cordova Regency, LLC | Pensacola, FL | 11/15/2013 | 13,750 | 11,375 | |||||||||
6 | Crestview at Oakleigh, LLC | Pensacola, FL | 11/15/2013 | 17,500 | 13,845 | |||||||||
7 | Inverness Lakes, LLC | Mobile, AL | 11/15/2013 | 29,600 | 24,700 | |||||||||
8 | Kings Mill Pensacola, LLC | Pensacola, FL | 11/15/2013 | 20,750 | 17,550 | |||||||||
9 | Plantations at Pine Lake, LLC | Tallahassee, FL | 11/15/2013 | 18,000 | 14,092 | |||||||||
10 | Verandas at Rocky Ridge, LLC | Birmingham, AL | 11/15/2013 | 15,600 | 10,205 | |||||||||
11 | Vinings Corner II, LLC | Smyrna, GA | 11/19/2013 | 35,691 | 32,395 | |||||||||
12 | Atlanta Eastwood Village LLC | Stockbridge, GA | 12/12/2013 | 25,957 | 22,361 | |||||||||
13 | Atlanta Monterey Village LLC | Jonesboro, GA | 12/12/2013 | 11,501 | 10,879 | |||||||||
14 | Atlanta Hidden Creek LLC | Morrow, GA | 12/12/2013 | 5,098 | 4,658 | |||||||||
15 | Atlanta Meadow Springs LLC | College Park, GA | 12/12/2013 | 13,116 | 12,808 | |||||||||
16 | Atlanta Meadow View LLC | College Park, GA | 12/12/2013 | 14,354 | 12,862 | |||||||||
17 | Atlanta Peachtree Landing LLC | Fairburn, GA | 12/12/2013 | 17,224 | 15,235 | |||||||||
18 | NPH Carroll Bartram Park, LLC | Jacksonville, FL | 12/31/2013 | 38,000 | 26,909 | |||||||||
19 | Crestview at Cordova, LLC | Pensacola, FL | 1/17/2014 | 8,500 | 7,695 | |||||||||
20 | Taco Bell, OK | Yukon, OK | 6/4/2014 | 1,719 | — | |||||||||
21 | Taco Bell, MO | Marshall, MO | 6/4/2014 | 1,405 | — | |||||||||
22 | 23 Mile Road Self Storage, LLC | Chesterfield, MI | 8/19/2014 | 5,804 | 4,350 | |||||||||
23 | 36th Street Self Storage, LLC | Wyoming, MI | 8/19/2014 | 4,800 | 3,600 | |||||||||
24 | Ball Avenue Self Storage, LLC | Grand Rapids, MI | 8/19/2014 | 7,281 | 5,460 | |||||||||
25 | Ford Road Self Storage, LLC | Westland, MI | 8/29/2014 | 4,642 | 3,480 | |||||||||
26 | Ann Arbor Kalamazoo Self Storage, LLC | Ann Arbor, MI | 8/29/2014 | 4,458 | 3,345 | |||||||||
27 | Ann Arbor Kalamazoo Self Storage, LLC | Ann Arbor, MI | 8/29/2014 | 8,927 | 6,695 | |||||||||
28 | Ann Arbor Kalamazoo Self Storage, LLC | Kalamazoo, MI | 8/29/2014 | 2,363 | 1,775 | |||||||||
29 | Canterbury Green Apartments Holdings LLC | Fort Wayne, IN | 9/29/2014 | 85,500 | 86,580 | |||||||||
30 | Abbie Lakes OH Partners, LLC | Canal Winchester, OH | 9/30/2014 | 12,600 | 14,233 | |||||||||
31 | Kengary Way OH Partners, LLC | Reynoldsburg, OH | 9/30/2014 | 11,500 | 15,935 | |||||||||
32 | Lakeview Trail OH Partners, LLC | Canal Winchester, OH | 9/30/2014 | 26,500 | 28,969 | |||||||||
33 | Lakepoint OH Partners, LLC | Pickerington, OH | 9/30/2014 | 11,000 | 14,480 | |||||||||
34 | Sunbury OH Partners, LLC | Columbus, OH | 9/30/2014 | 13,000 | 15,359 | |||||||||
35 | Heatherbridge OH Partners, LLC | Blacklick, OH | 9/30/2014 | 18,416 | 18,328 | |||||||||
36 | Jefferson Chase OH Partners, LLC | Blacklick, OH | 9/30/2014 | 13,551 | 19,493 | |||||||||
37 | Goldenstrand OH Partners, LLC | Hilliard, OH | 10/29/2014 | 7,810 | 11,893 | |||||||||
38 | Jolly Road Self Storage, LLC | Okemos, MI | 1/16/2015 | 7,492 | 5,620 |
No. | Property Name | City | Acquisition Date | Purchase Price | Mortgage Outstanding | |||||||||
39 | Eaton Rapids Road Self Storage, LLC | Lansing West, MI | 1/16/2015 | 1,741 | 1,305 | |||||||||
40 | Haggerty Road Self Storage, LLC | Novi, MI | 1/16/2015 | 6,700 | 5,025 | |||||||||
41 | Waldon Road Self Storage, LLC | Lake Orion, MI | 1/16/2015 | 6,965 | 5,225 | |||||||||
42 | Tyler Road Self Storage, LLC | Ypsilanti, MI | 1/16/2015 | 3,507 | 2,630 | |||||||||
43 | SSIL I, LLC | Aurora, IL | 11/5/2015 | 34,500 | 26,450 | |||||||||
44 | Vesper Tuscaloosa, LLC | Tuscaloosa, AL | 9/28/2016 | 54,500 | 43,109 | |||||||||
45 | Vesper Iowa City, LLC | Iowa City, IA | 9/28/2016 | 32,750 | 24,825 | |||||||||
46 | Vesper Corpus Christi, LLC | Corpus Christi, TX | 9/28/2016 | 14,250 | 10,800 | |||||||||
47 | Vesper Campus Quarters, LLC | Corpus Christi, TX | 9/28/2016 | 18,350 | 14,175 | |||||||||
48 | Vesper College Station, LLC | College Station, TX | 9/28/2016 | 41,500 | 32,058 | |||||||||
49 | Vesper Kennesaw, LLC | Kennesaw, GA | 9/28/2016 | 57,900 | 48,647 | |||||||||
50 | Vesper Statesboro, LLC | Statesboro, GA | 9/28/2016 | 7,500 | 7,480 | |||||||||
51 | Vesper Manhattan KS, LLC | Manhattan, KS | 9/28/2016 | 23,250 | 15,415 | |||||||||
52 | JSIP Union Place, LLC | Franklin, MA | 12/7/2016 | 64,750 | 51,800 | |||||||||
53 | 9220 Old Lantern Way, LLC | Laurel, MD | 1/30/2017 | 187,250 | 153,580 | |||||||||
54 | 7915 Baymeadows Circle Owner, LLC | Jacksonville, FL | 10/31/2017 | 95,700 | 76,560 | |||||||||
55 | 8025 Baymeadows Circle Owner, LLC | Jacksonville, FL | 10/31/2017 | 15,300 | 12,240 | |||||||||
56 | 23275 Riverside Drive Owner, LLC | Southfield, MI | 11/8/2017 | 52,000 | 44,044 | |||||||||
57 | 23741 Pond Road Owner, LLC | Southfield, MI | 11/8/2017 | 16,500 | 14,185 | |||||||||
58 | 150 Steeplechase Way Owner, LLC | Largo, MD | 1/10/2018 | 44,500 | 36,668 | |||||||||
59 | Laurel Pointe Holdings, LLC | Forest Park, GA | 5/9/2018 | 33,005 | 26,400 | |||||||||
60 | Bradford Ridge Holdings, LLC | Forest Park, GA | 5/9/2018 | 12,500 | 10,000 | |||||||||
61 | Olentangy Commons Owner LLC | Columbus, OH | 6/1/2018 | 113,000 | 92,876 | |||||||||
62 | Villages of Wildwood Holdings LLC | Fairfield, OH | 7/20/2018 | 46,500 | 39,525 | |||||||||
63 | Falling Creek Holdings LLC | Richmond, VA | 8/8/2018 | 25,000 | 19,335 | |||||||||
64 | Crown Pointe Passthrough LLC | Danbury, CT | 8/30/2018 | 108,500 | 89,400 | |||||||||
65 | Ashwood Ridge Holdings LLC | Jonesboro, GA | 9/21/2018 | 9,600 | 7,300 | |||||||||
66 | Lorring Owner LLC | Forestville, MD | 10/30/2018 | 58,521 | 47,680 | |||||||||
$ | 1,992,698 | $ | 1,659,875 |
Principal Outstanding | Unamortized Discount & Debt Issuance Costs | Net Carrying Value | Fair Value (1) | Effective Interest Rate | ||||||||||||||||||
Revolving Credit Facility(2) | $ | 297,000 | $ | 8,493 | $ | 297,000 | (3 | ) | $ | 297,000 | 1ML+2.20% | (6 | ) | |||||||||
2019 Notes | 101,647 | 25 | 101,622 | 101,549 | (4 | ) | 6.51 | % | (7 | ) | ||||||||||||
2020 Notes | 378,500 | 2,998 | 375,502 | 375,964 | (4 | ) | 5.52 | % | (7 | ) | ||||||||||||
2022 Notes | 328,500 | 7,613 | 320,887 | 319,171 | (4 | ) | 5.71 | % | (7 | ) | ||||||||||||
Convertible Notes | 808,647 | 798,011 | 796,684 | |||||||||||||||||||
2023 Notes | 320,000 | 3,683 | 316,317 | 324,326 | (4 | ) | 6.09 | % | (7 | ) | ||||||||||||
2024 Notes | 219,297 | 4,846 | 214,451 | 214,560 | (4 | ) | 6.76 | % | (7 | ) | ||||||||||||
2028 Notes | 67,411 | 2,255 | 65,156 | 61,641 | (4 | ) | 6.77 | % | (7 | ) | ||||||||||||
6.375% 2024 Notes | 100,000 | 1,230 | 98,770 | 101,981 | (4 | ) | 6.62 | % | (7 | ) | ||||||||||||
2029 Notes | 50,000 | 1,932 | 48,068 | 46,220 | (4 | ) | 7.39 | % | (7 | ) | ||||||||||||
Public Notes | 756,708 | 742,762 | 748,728 | |||||||||||||||||||
Prospect Capital InterNotes® | 725,659 | 11,641 | 714,018 | 681,652 | (5 | ) | 5.91 | % | (8 | ) | ||||||||||||
Total | $ | 2,588,014 | $ | 2,551,791 | $ | 2,524,064 |
(1) | As permitted by ASC 825-10-25, we have not elected to value our Revolving Credit Facility, Convertible Notes, Public Notes and Prospect Capital InterNotes® at fair value. The fair value of these debt obligations are categorized as Level 2 under ASC 820 as of December 31, 2018. |
(2) | The maximum draw amount of the Revolving Credit facility as of December 31, 2018 is $1,020,000. |
(3) | Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Critical Accounting Policies and Estimates for accounting policy details. |
(4) | We use available market quotes to estimate the fair value of the Convertible Notes and Public Notes. |
(5) | The fair value of Prospect Capital InterNotes® is estimated by discounting remaining payments using current Treasury rates plus spread based on observable market inputs. |
(6) | Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation. |
(7) | The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs. For the 2024 Notes and the 2028 Notes, the rate presented is a combined effective interest rate of their respective original Note issuances and Note Follow-on Programs. |
(8) | For the Prospect Capital InterNotes®, the rate presented is the weighted average effective interest rate. Interest expense and deferred debt issuance costs, which are amortized on a straight-line method over the stated life of the obligation which approximates level yield, are weighted against the average year-to-date principal balance. |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | After 5 Years | |||||||||||||||
Revolving Credit Facility | $ | 297,000 | $ | — | $ | — | $ | — | $ | 297,000 | |||||||||
Convertible Notes | 808,647 | 101,647 | 378,500 | 328,500 | — | ||||||||||||||
Public Notes | 756,708 | — | — | 320,000 | 436,708 | ||||||||||||||
Prospect Capital InterNotes® | 725,659 | — | 245,018 | 210,398 | 270,243 | ||||||||||||||
Total Contractual Obligations | $ | 2,588,014 | $ | 101,647 | $ | 623,518 | $ | 858,898 | $ | 1,003,951 |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | After 5 Years | |||||||||||||||
Revolving Credit Facility | $ | 37,000 | $ | — | $ | 37,000 | $ | — | $ | — | |||||||||
Convertible Notes | 822,147 | 101,647 | 392,000 | 328,500 | — | ||||||||||||||
Public Notes | 727,817 | — | 153,536 | 320,000 | 254,281 | ||||||||||||||
Prospect Capital InterNotes® | 760,924 | — | 276,484 | 246,525 | 237,915 | ||||||||||||||
Total Contractual Obligations | $ | 2,347,888 | $ | 101,647 | $ | 859,020 | $ | 895,025 | $ | 492,196 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Average stated interest rate | 4.5 | % | 3.6 | % | 4.4 | % | 3.6 | % | |||
Average outstanding balance | $308,424 | 66,437 | $237,283 | $33,219 |
2019 Notes | 2020 Notes | 2022 Notes | ||||||||||
Initial conversion rate(1) | 79.7766 | 80.6647 | 100.2305 | |||||||||
Initial conversion price | $ | 12.54 | $ | 12.40 | $ | 9.98 | ||||||
Conversion rate at December 31, 2018(1)(2) | 79.8360 | 80.6670 | 100.2305 | |||||||||
Conversion price at December 31, 2018(2)(3) | $ | 12.53 | $ | 12.40 | $ | 9.98 | ||||||
Last conversion price calculation date | 12/21/2017 | 4/11/2018 | 4/11/2018 | |||||||||
Dividend threshold amount (per share)(4) | $ | 0.110025 | $ | 0.110525 | $ | 0.083330 |
(1) | Conversion rates denominated in shares of common stock per $1 principal amount of the Convertible Notes converted. |
(2) | Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date. |
(3) | The conversion price will increase only if the current monthly dividends (per share) exceed the dividend threshold amount (per share). |
(4) | The conversion rate is increased if monthly cash dividends paid to common shares exceed the monthly dividend threshold amount, subject to adjustment. Current dividend rates are at or below the minimum dividend threshold amount for further conversion rate adjustments for all bonds. |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | ||||||||
5 | $ | 33,295 | 5.00%–5.75% | 5.29 | % | July 15, 2023 – January 15, 2024 | ||||||
7 | 14,718 | 5.50%–6.00% | 5.84 | % | July 15, 2025 – January 15, 2026 | |||||||
8 | 385 | 5.75 | % | 5.75 | % | July 15, 2026 | ||||||
10 | 21,188 | 6.00%–6.25% | 6.06 | % | July 15, 2028 – November 15, 2028 | |||||||
$ | 69,586 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | |||||||
5 | $ | 31,950 | 4.00%–4.75% | 4.23 | % | July 15, 2022 – December 15, 2022 | |||||
7 | 2,825 | 4.75%–5.00% | 4.94 | % | July 15, 2024 | ||||||
8 | 17,402 | 4.50%–5.00% | 4.61 | % | August 15, 2025 – December 15, 2025 | ||||||
$ | 52,177 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | ||||||||
5 | $ | 254,515 | 4.00% – 5.75% | 4.97 | % | July 15, 2020 - January 15, 2024 | ||||||
5.2 | 2,618 | 4.63 | % | 4.63 | % | September 15, 2020 | ||||||
5.3 | 2,601 | 4.63 | % | 4.63 | % | September 15, 2020 | ||||||
5.5 | 53,836 | 4.25% – 4.75% | 4.59 | % | June 15, 2020 - October 15, 2020 | |||||||
6 | 2,182 | 4.88 | % | 4.88 | % | April 15, 2021 - May 15, 2021 | ||||||
6.5 | 38,672 | 5.10% – 5.25% | 5.23 | % | December 15, 2021 - May 15, 2022 | |||||||
7 | 103,377 | 4.00% – 6.00% | 5.21 | % | January 15, 2020 - January 15, 2026 | |||||||
7.5 | 1,996 | 5.75 | % | 5.75 | % | February 15, 2021 | ||||||
8 | 24,720 | 4.50% – 5.75% | 4.67 | % | August 15, 2025 - July 15, 2026 | |||||||
10 | 58,497 | 5.33% – 7.00% | 6.14 | % | March 15, 2022 - November 15, 2028 | |||||||
12 | 2,978 | 6.00 | % | 6.00 | % | November 15, 2025 - December 15, 2025 | ||||||
15 | 17,138 | 5.25% – 6.00% | 5.36 | % | May 15, 2028 - November 15, 2028 | |||||||
18 | 19,806 | 4.13% – 6.25% | 5.56 | % | December 15, 2030 - August 15, 2031 | |||||||
20 | 3,990 | 5.75% – 6.00% | 5.89 | % | November 15, 2032 - October 15, 2033 | |||||||
25 | 32,335 | 6.25% – 6.50% | 6.39 | % | August 15, 2038 - May 15, 2039 | |||||||
30 | 106,398 | 5.50% – 6.75% | 6.24 | % | November 15, 2042 - October 15, 2043 | |||||||
$ | 725,659 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | ||||||||
5 | $ | 228,835 | 4.00% – 5.50% | 4.92 | % | July 15, 2020 - June 15, 2023 | ||||||
5.2 | 4,440 | 4.63 | % | 4.63 | % | August 15, 2020 - September 15, 2020 | ||||||
5.3 | 2,636 | 4.63 | % | 4.63 | % | September 15, 2020 | ||||||
5.5 | 86,097 | 4.25% – 4.75% | 4.61 | % | May 15, 2020 - November 15, 2020 | |||||||
6 | 2,182 | 4.88 | % | 4.88 | % | April 15, 2021 - May 15, 2021 | ||||||
6.5 | 38,832 | 5.10% – 5.25% | 5.23 | % | December 15, 2021 - May 15, 2022 | |||||||
7 | 147,349 | 4.00% – 5.75% | 5.05 | % | January 15, 2020 - June 15, 2025 | |||||||
7.5 | 1,996 | 5.75% | 5.75 | % | February 15, 2021 | |||||||
8 | 24,720 | 4.50% – 5.25% | 4.65 | % | August 15, 2025 - May 15, 2026 | |||||||
10 | 37,424 | 5.34% – 7.00% | 6.19 | % | March 15, 2022 - December 15, 2025 | |||||||
12 | 2,978 | 6.00 | % | 6.00 | % | November 15, 2025 - December 15, 2025 | ||||||
15 | 17,163 | 5.25% – 6.00% | 5.35 | % | May 15, 2028 - November 15, 2028 | |||||||
18 | 20,677 | 4.13% – 6.25% | 5.55 | % | December 15, 2030 - August 15, 2031 | |||||||
20 | 4,120 | 5.75% – 6.00% | 5.89 | % | November 15, 2032 - October 15, 2033 | |||||||
25 | 33,139 | 6.25% – 6.50% | 6.39 | % | August 15, 2038 - May 15, 2039 | |||||||
30 | 108,336 | 5.50% – 6.75% | 6.24 | % | November 15, 2042 - October 15, 2043 | |||||||
$ | 760,924 |
December 31, 2018 | June 30, 2018 | |||||||
Net assets | $ | 3,303,175 | $ | 3,407,047 | ||||
Shares of common stock issued and outstanding | 366,055,966 | 364,409,938 | ||||||
Net asset value per share | $ | 9.02 | $ | 9.35 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Total Investment Income | $ | 187,883 | $ | 162,400 | $ | 368,305 | $ | 320,979 | |||||||
Total Operating Expenses | 107,072 | 89,208 | 202,335 | 184,055 | |||||||||||
Net Investment Income | 80,811 | 73,192 | 165,970 | 136,924 | |||||||||||
Net Realized Gains (Losses) | 2,993 | (5,673 | ) | 4,034 | (4,236 | ) | |||||||||
Net Change in Unrealized Gains (Losses) | (150,696 | ) | 54,695 | (149,647 | ) | 1,944 | |||||||||
Net Realized Losses on Extinguishment of Debt | (497 | ) | (487 | ) | (3,951 | ) | (932 | ) | |||||||
Net Increase in Net Assets Resulting from Operations | $ | (67,389 | ) | $ | 121,727 | $ | 16,406 | $ | 133,700 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest income | $ | 157,994 | $ | 153,382 | $ | 317,436 | $ | 301,467 | |||||||
Dividend income | 13,266 | 326 | 28,193 | 870 | |||||||||||
Other income | 16,623 | 8,692 | 22,676 | 18,642 | |||||||||||
Total investment income | $ | 187,883 | $ | 162,400 | $ | 368,305 | $ | 320,979 | |||||||
Average debt principal of performing interest bearing investments(1) | $ | 5,504,149 | $ | 5,541,686 | $ | 5,503,842 | $ | 5,482,245 | |||||||
Weighted average interest rate earned on performing interest bearing investments(1) | 11.23 | % | 10.83 | % | 11.41 | % | 10.88 | % | |||||||
Average debt principal of all interest bearing investments(2) | $ | 6,058,947 | $ | 5,838,576 | $ | 5,994,970 | $ | 5,804,372 | |||||||
Weighted average interest rate earned on all interest bearing investments(2) | 10.20 | % | 10.28 | % | 10.47 | % | 10.27 | % |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Base management fee | $ | 33,187 | $ | 29,559 | $ | 63,144 | $ | 59,722 | |||||||
Income incentive fee | 20,203 | 18,298 | 41,493 | 34,231 | |||||||||||
Interest and credit facility expenses | 40,656 | 39,347 | 78,564 | 80,382 | |||||||||||
Allocation of overhead from Prospect Administration | 5,642 | (824 | ) | 9,007 | 2,704 | ||||||||||
Audit, compliance and tax related fees | 2,389 | 1,866 | 2,782 | 2,954 | |||||||||||
Directors' fees | 150 | 112 | 229 | 225 | |||||||||||
Other general and administrative expenses | 4,845 | 850 | 7,116 | 3,837 | |||||||||||
Total Operating Expenses | $107,072 | $89,208 | $202,335 | $184,055 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest on borrowings | $ | 34,998 | $ | 34,130 | $ | 67,983 | $ | 69,668 | |||||||
Amortization of deferred financing costs | 3,627 | 3,053 | 6,343 | 6,219 | |||||||||||
Accretion of discount on Public Notes | 104 | 72 | 235 | 141 | |||||||||||
Facility commitment fees | 1,927 | 2,092 | 4,003 | 4,354 | |||||||||||
Total interest and credit facility expenses | $ | 40,656 | $ | 39,347 | $ | 78,564 | $ | 80,382 | |||||||
Average principal debt outstanding | $ | 2,600,363 | $ | 2,588,997 | $ | 2,548,458 | $ | 2,627,534 | |||||||
Annualized weighted average stated interest rate on borrowings(1) | 5.38 | % | 5.27 | % | 5.34 | % | 5.30 | % | |||||||
Annualized weighted average interest rate on borrowings(2) | 6.25 | % | 6.08 | % | 6.17 | % | 6.12 | % |
(1) | Includes only the stated interest expense. |
(2) | Includes the stated interest expense, amortization of deferred financing costs, accretion of discount on Public Notes and commitment fees on the undrawn portion of our Revolving Credit Facility. |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Control investments | $ | (85,733 | ) | $ | 44,425 | $ | (33,815 | ) | $ | 45,518 | |||||
Affiliate investments | (5,894 | ) | 1,533 | (19,649 | ) | 6,726 | |||||||||
Non-control/non-affiliate investments | (59,069 | ) | 8,737 | (96,183 | ) | (50,300 | ) | ||||||||
Net change in unrealized (losses) gains | $ | (150,696 | ) | $ | 54,695 | $ | (149,647 | ) | $ | 1,944 |
Net Change in Unrealized Gains (Losses) | |||||
Valley Electric Company, Inc. | $ | 7,815 | |||
CCPI Inc. | 6,706 | ||||
NMMB, Inc. | 3,972 | ||||
Credit Central Loan Company, LLC | (3,562 | ) | |||
USES Corp. | (3,246 | ) | |||
InterDent, Inc. | (3,248 | ) | |||
ACE Cash Express, Inc. | (3,681 | ) | |||
Engine Group, Inc. | (4,368 | ) | |||
MITY, Inc. | (6,372 | ) | |||
United Sporting Companies, Inc. | (7,700 | ) | |||
Universal Turbine Parts, LLC | (8,135 | ) | |||
CP Energy Services Inc. | (12,422 | ) | |||
National Property REIT Corp. | (28,921 | ) | |||
Pacific World Corporation | (31,628 | ) | |||
CLO Equity | (39,765 | ) | |||
Other, net | (16,141 | ) | |||
Net change in unrealized losses | $ | (150,696 | ) |
Net Change in Unrealized Gains (Losses) | ||||
First Tower Finance Company LLC | $ | 32,654 | ||
PrimeSport, Inc. | 19,355 | |||
Spartan Energy Services, Inc. | 18,245 | |||
National Property REIT Corp. | 11,236 | |||
Credit Central Loan Company, LLC | 8,117 | |||
Echelon Aviation LLC | 6,075 | |||
Arctic Energy Services, LLC | 5,923 | |||
InterDent, Inc. | 4,838 | |||
Valley Electric Company, Inc. | 3,796 | |||
Pacific World Corporation | (3,277 | ) | ||
Edmentum Ultimate Holdings, LLC | (4,763 | ) | ||
MITY, Inc. | (8,254 | ) | ||
Nationwide Loan Company LLC | (9,826 | ) | ||
CLO Equity | (12,047 | ) | ||
United Sporting Companies, Inc. | (13,757 | ) | ||
Other, net | (3,619 | ) | ||
Net change in unrealized gains | $ | 54,695 |
Net Change in Unrealized Gains (Losses) | ||||
Valley Electric Company, Inc. | $ | 33,861 | ||
CP Energy Services Inc. | 6,957 | |||
NMMB, Inc. | 6,311 | |||
CCPI Inc. | 5,863 | |||
Echelon Aviation LLC | 5,817 | |||
First Tower Finance Company LLC | 3,253 | |||
Nationwide Loan Company LLC | (3,030 | ) | ||
Freedom Marine Solutions, LLC | (3,313 | ) | ||
InterDent, Inc. | (3,720 | ) | ||
USES Corp. | (3,758 | ) | ||
ACE Cash Express, Inc. | (3,919 | ) | ||
Engine Group, Inc. | (5,067 | ) | ||
R-V Industries, Inc. | (7,216 | ) | ||
MITY, Inc. | (7,751 | ) | ||
Credit Central Loan Company, LLC | (10,499 | ) | ||
National Property REIT Corp. | (13,918 | ) | ||
United Sporting Companies, Inc. | (15,836 | ) | ||
Universal Turbine Parts, LLC | (19,043 | ) | ||
Pacific World Corporation | (32,240 | ) | ||
CLO Equity | (64,477 | ) | ||
Other, net | (17,922 | ) | ||
Net change in unrealized losses | $ | (149,647 | ) |
Net Change in Unrealized Gains (Losses) | ||||
First Tower Finance Company LLC | $ | 41,784 | ||
PrimeSport, Inc. | 23,741 | |||
Spartan Energy Services, Inc. | 18,612 | |||
CP Energy Services Inc. | 14,341 | |||
Credit Central Loan Company, LLC | 9,337 | |||
Targus International, LLC | 7,572 | |||
National Property REIT Corp. | 7,508 | |||
Valley Electric Company, Inc. | 7,320 | |||
Arctic Energy Services, LLC | 6,788 | |||
Echelon Aviation LLC | 5,259 | |||
CCPI Inc. | (4,046 | ) | ||
MITY, Inc. | (7,030 | ) | ||
Universal Turbine Parts, LLC | (8,218 | ) | ||
USES Corp. | (8,859 | ) | ||
Nationwide Loan Company LLC | (10,764 | ) | ||
Edmentum Ultimate Holdings, LLC | (13,094 | ) | ||
United Sporting Companies, Inc. | (27,164 | ) | ||
CLO Equity | (56,802 | ) | ||
Other, net | (4,341 | ) | ||
Net change in unrealized gains | $ | 1,944 |
• | $0.06 per share for February 2019 to holders of record on February 28, 2019 with a payment date of March 21, 2019 |
• | $0.06 per share for March 2019 to holders of record on March 29, 2019 with a payment date of April 18, 2019. |
• | $0.06 per share for April 2019 to holders of record on April 30, 2019 with a payment date of May 23, 2019. |
i. | fair value of investment securities, other assets and liabilities—at the spot exchange rate on the last business day of the period; and |
ii. | purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such investment transactions, income or expenses. |
1. | Each portfolio company or investment is reviewed by our investment professionals with independent valuation firms engaged by our Board of Directors. |
2. | The independent valuation firms prepare independent valuations for each investment based on their own independent assessments and issue their report. |
3. | The Audit Committee of our Board of Directors reviews and discusses with the independent valuation firms the valuation reports, and then makes a recommendation to the Board of Directors of the value for each investment. |
4. | The Board of Directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm and the Audit Committee. |
(in thousands) Basis Point Change | Interest Income | Interest Expense | Net Investment Income | Net Investment Income (1) | ||||||||||||
Up 300 basis points | $ | 100,576 | $ | 52 | $ | 100,524 | $ | 80,419 | ||||||||
Up 200 basis points | 66,628 | 35 | 66,593 | 53,274 | ||||||||||||
Up 100 basis points | 32,679 | 17 | 32,662 | 26,130 | ||||||||||||
Down 100 basis points | (41,924 | ) | (41 | ) | (41,883 | ) | (33,506 | ) |
(1) | Includes the impact of income incentive fees. See Note 13 in the accompanying Consolidated Financial Statements for more information on income incentive fees. |
• | banks, insurance companies or other financial institutions; |
• | pension plans or trusts; |
• | U.S. noteholders (as defined below) whose functional currency is not the U.S. dollar; |
• | real estate investment trusts; |
• | regulated investment companies; |
• | persons subject to the alternative minimum tax; |
• | cooperatives; |
• | tax-exempt organizations; |
• | dealers in securities; |
• | expatriates; |
• | foreign persons or entities (except to the extent set forth below); |
• | persons deemed to sell the notes under the constructive sale provisions of the Code; or |
• | persons that hold the notes as part of a straddle, hedge, conversion transaction or other integrated investment. |
• | the rate is subject to one or more minimum or maximum rate floors or ceilings or one or more governors limiting the amount of increase or decrease in each case which are not fixed throughout the term of the note and which are reasonably expected as of the issue date to cause the rate in some accrual periods to be significantly higher or lower than the overall expected return on the note determined without the floor, ceiling, or governor; or |
• | the rate is a multiple of a qualified floating rate unless the multiple is a fixed multiple that is greater than 0.65 but not more than 1.35 (provided, however, that if a multiple of a qualified floating rate is not within such limits and thus is not itself a qualified floating rate, it may nevertheless qualify as an “objective rate”). |
• | does not own, actually or constructively, 10% or more of the total combined voting power of all classes of our stock entitled to vote; |
• | is not a “controlled foreign corporation” with respect to which we are, directly or indirectly, a “related person”; |
• | is not a bank whose receipt of interest on the notes is described in section 881(c)(3)(A) of the Code; and |
• | provides its name and address, and certifies, under penalties of perjury, that it is not a U.S. person (on a properly executed IRS Form W-8BEN or W-8BEN-E (or other applicable form)), or holds its notes through certain foreign intermediaries and satisfies the certification requirements of applicable Treasury Regulations. |
• | the gain is effectively connected with its conduct of a U.S. trade or business (and, if required by an applicable income tax treaty, is attributable to a United States permanent establishment); or |
• | the non-U.S. noteholder is a nonresident alien individual present in the U.S. for 183 or more days in the taxable year within which the sale, exchange, redemption or other disposition takes place and certain other requirements are met. |
Total Amount Outstanding(1) | Asset Coverage per Unit(2) | Involuntary Liquidating Preference per Unit(3) | Average Market Value per Unit(4) | ||||||||||||
Credit Facility(15) | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 297,000 | $ | 19,830 | — | — | |||||||||
Fiscal 2018 (as of June 30, 2018) | 37,000 | 155,503 | — | — | |||||||||||
Fiscal 2017 (as of June 30, 2017) | — | — | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | — | — | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 368,700 | 18,136 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 92,000 | 69,470 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 124,000 | 34,996 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 96,000 | 22,668 | — | — | |||||||||||
Fiscal 2011 (as of June 30, 2011) | 84,200 | 18,065 | — | — | |||||||||||
Fiscal 2010 (as of June 30, 2010) | 100,300 | 8,093 | — | — | |||||||||||
Fiscal 2009 (as of June 30, 2009) | 124,800 | 5,268 | — | — | |||||||||||
2015 Notes(5) | |||||||||||||||
Fiscal 2015 (as of June 30, 2015) | $ | 150,000 | $ | 44,579 | — | — | |||||||||
Fiscal 2014 (as of June 30, 2014) | 150,000 | 42,608 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 150,000 | 28,930 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 150,000 | 14,507 | — | — | |||||||||||
Fiscal 2011 (as of June 30, 2011) | 150,000 | 10,140 | — | — | |||||||||||
2016 Notes(6) | |||||||||||||||
Fiscal 2016 (as of June 30, 2016) | $ | 167,500 | $ | 36,677 | — | — | |||||||||
Fiscal 2015 (as of June 30, 2015) | 167,500 | 39,921 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 167,500 | 38,157 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 167,500 | 25,907 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 167,500 | 12,992 | — | — | |||||||||||
Fiscal 2011 (as of June 30, 2011) | 172,500 | 8,818 | — | — | |||||||||||
2017 Notes(7) | |||||||||||||||
Fiscal 2017 (as of June 30, 2017) | $ | 50,734 | $ | 118,981 | — | — | |||||||||
Fiscal 2016 (as of June 30, 2016) | 129,500 | 47,439 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 130,000 | 51,437 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 130,000 | 49,163 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 130,000 | 33,381 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 130,000 | 16,739 | — | — | |||||||||||
2018 Notes(8) | |||||||||||||||
Fiscal 2017 (as of June 30, 2017) | $ | 85,419 | $ | 70,668 | — | — | |||||||||
Fiscal 2016 (as of June 30, 2016) | 200,000 | 30,717 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 200,000 | 33,434 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 200,000 | 31,956 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 200,000 | 21,697 | — | — |
Total Amount Outstanding(1) | Asset Coverage per Unit(2) | Involuntary Liquidating Preference per Unit(3) | Average Market Value per Unit(4) | ||||||||||||
2019 Notes(16) | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 101,647 | $ | 57,942 | — | — | |||||||||
Fiscal 2018 (as of June 30, 2018) | 101,647 | 56,604 | — | — | |||||||||||
Fiscal 2017 (as of June 30, 2017) | 200,000 | 30,182 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 200,000 | 30,717 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 200,000 | 33,434 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 200,000 | 31,956 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 200,000 | 21,697 | — | — | |||||||||||
5.00% 2019 Notes(10) | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 153,536 | $ | 37,474 | — | — | |||||||||
Fiscal 2017 (as of June 30, 2017) | 300,000 | 20,121 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 300,000 | 20,478 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 300,000 | 22,289 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 300,000 | 21,304 | — | — | |||||||||||
2020 Notes | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 378,500 | $ | 15,560 | — | — | |||||||||
Fiscal 2018 (as of June 30, 2018) | 392,000 | 14,678 | — | — | |||||||||||
Fiscal 2017 (as of June 30, 2017) | 392,000 | 15,399 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 392,000 | 15,672 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 392,000 | 17,058 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 400,000 | 15,978 | — | — | |||||||||||
6.95% 2022 Notes(9) | |||||||||||||||
Fiscal 2014 (as of June 30, 2014) | $ | 100,000 | $ | 63,912 | — | $ | 1,038 | ||||||||
Fiscal 2013 (as of June 30, 2013) | 100,000 | 43,395 | — | 1,036 | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 100,000 | 21,761 | — | 996 | |||||||||||
2022 Notes | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 328,500 | $ | 17,929 | — | — | |||||||||
Fiscal 2018 (as of June 30, 2018) | 328,500 | 17,515 | — | — | |||||||||||
Fiscal 2017 (as of June 30, 2017) | 225,000 | 26,828 | — | — | |||||||||||
2023 Notes(11) | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 318,718 | $ | 18,479 | — | — | |||||||||
Fiscal 2018 (as of June 30, 2018) | 318,675 | 18,055 | — | — | |||||||||||
Fiscal 2017 (as of June 30, 2017) | 248,507 | 24,291 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 248,293 | 24,742 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 248,094 | 26,953 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 247,881 | 25,783 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 247,725 | 17,517 | — | — | |||||||||||
2024 Notes | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 219,297 | $ | 26,857 | — | $ | 990 | ||||||||
Fiscal 2018 (as of June 30, 2018) | 199,281 | 28,872 | — | 1,029 | |||||||||||
Fiscal 2017 (as of June 30, 2017) | 199,281 | 30,291 | — | 1,027 | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 161,364 | 38,072 | — | 951 |
Total Amount Outstanding(1) | Asset Coverage per Unit(2) | Involuntary Liquidating Preference per Unit(3) | Average Market Value per Unit(4) | ||||||||||||
6.375% 2024 Notes(11) | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 99,700 | $ | 59,073 | — | — | |||||||||
2028 Notes | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 67,411 | $ | 87,369 | — | $ | 956 | ||||||||
Fiscal 2018 (as of June 30, 2018) | 55,000 | 104,611 | — | 1,004 | |||||||||||
2029 Notes | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 50,000 | $ | 117,792 | 924 | ||||||||||
Prospect Capital InterNotes®(13) | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 725,659 | $ | 8,116 | — | — | |||||||||
Fiscal 2018 (as of June 30, 2018) | 760,924 | 7,561 | — | — | |||||||||||
Fiscal 2017 (as of June 30, 2017) | 980,494 | 6,156 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 908,808 | 6,760 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 827,442 | 8,081 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 785,670 | 8,135 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 363,777 | 11,929 | — | — | |||||||||||
All Senior Securities(11)(12)(13)(14) | |||||||||||||||
Fiscal 2019 (as of December 31, 2018, unaudited) | $ | 2,586,432 | $ | 2,277 | — | — | |||||||||
Fiscal 2018 (as of June 30, 2018) | 2,346,563 | 2,452 | — | — | |||||||||||
Fiscal 2017 (as of June 30, 2017) | 2,681,435 | 2,251 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 2,707,465 | 2,269 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 2,983,736 | 2,241 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 2,773,051 | 2,305 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 1,683,002 | 2,578 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 664,138 | 3,277 | — | — |
(1) | Except as noted, the total amount of each class of senior securities outstanding at the end of the year/period presented (in 000’s). |
(2) | The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit. |
(3) | This column is inapplicable. |
(4) | This column is inapplicable, except for the 6.95% 2022 Notes, the 2024 Notes, the 2028 Notes and the 2029 Notes. The average market value per unit is calculated as an average of quarter-end prices and shown as the market value per $1,000 of indebtedness. |
(5) | We repaid the outstanding principal amount of the 2015 Notes on December 15, 2015. |
(6) | We repaid the outstanding principal amount of the 2016 Notes on August 15, 2016. |
(7) | We repaid the outstanding principal amount of the 2017 Notes on October 15, 2017. |
(8) | We repaid the outstanding principal amount of the 2018 Notes on March 15, 2018. |
(9) | We redeemed the 6.95% 2022 Notes on May 15, 2015. |
(10) | We redeemed the 5.00% 2019 Notes on September 26, 2018. |
(11) | For the period ended December 31, 2018 and all fiscal years ended June 30th, the notes are presented net of unamortized discount. |
(12) | While we do not consider commitments to fund under revolving arrangements to be Senior Securities, if we were to elect to treat such unfunded commitments, which were $24,737 as of December 31, 2018 as Senior Securities for purposes of Section 18 of the 1940 Act, our asset coverage per unit would be $2,265. |
(13) | We have provided notice to call on December 14, 2018 with settlement on January 15, 2019, $24.0 million of our Prospect Capital InterNotes® at par maturing on July 15, 2020, with a weighted average rate of 4.71%. |
(14) | If we were to consider the additional issuance, repurchases and maturities subsequent to December 31, 2018 including all notices to redeem with settlements through February 7, 2019, our asset coverage per unit would be $2,304, or $2,293 including the effects of unfunded commitments. |
(15) | As of February 7, 2019, we had $358.0 million outstanding borrowings under our credit facility. |
(16) | We redeemed the 2019 Notes on January 15, 2019. |
Financial Statements | ||
December 31, 2018 | June 30, 2018 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Investments at fair value: | |||||||
Control investments (amortized cost of $2,381,352 and $2,300,526, respectively) | $ | 2,432,766 | $ | 2,404,326 | |||
Affiliate investments (amortized cost of $176,997 and $55,637, respectively) | 91,861 | 58,436 | |||||
Non-control/non-affiliate investments (amortized cost of $3,538,047 and $3,475,295, respectively) | 3,317,943 | 3,264,517 | |||||
Total investments at fair value (amortized cost of $6,096,396 and $5,831,458, respectively) | 5,842,570 | 5,727,279 | |||||
Cash | 109,668 | 83,758 | |||||
Receivables for: | |||||||
Interest, net | 7,663 | 19,783 | |||||
Other | 237 | 1,867 | |||||
Deferred financing costs on Revolving Credit Facility (Note 4) | 8,493 | 2,032 | |||||
Due from broker (Note 6) | 580 | 3,029 | |||||
Prepaid expenses | 568 | 984 | |||||
Due from Affiliate (Note 13) | 88 | 88 | |||||
Total Assets | 5,969,867 | 5,838,820 | |||||
Liabilities | |||||||
Revolving Credit Facility (Notes 4 and 8) | 297,000 | 37,000 | |||||
Convertible Notes (less unamortized debt issuance costs of $10,636 and $13,074, respectively) (Notes 5 and 8) | 798,011 | 809,073 | |||||
Public Notes (less unamortized discount and debt issuance costs of $13,946 and $11,007, respectively) (Notes 6 and 8) | 742,762 | 716,810 | |||||
Prospect Capital InterNotes® (less unamortized debt issuance costs of $11,641 and $11,998, respectively) (Notes 7 and 8) | 714,018 | 748,926 | |||||
Due to Prospect Capital Management (Note 13) | 51,301 | 49,045 | |||||
Interest payable | 32,975 | 33,741 | |||||
Dividends payable | 21,963 | 21,865 | |||||
Due to broker | — | 6,159 | |||||
Accrued expenses | 5,505 | 5,426 | |||||
Due to Prospect Administration (Note 13) | 1,785 | 2,212 | |||||
Other liabilities | 1,372 | 1,516 | |||||
Total Liabilities | 2,666,692 | 2,431,773 | |||||
Commitments and Contingencies (Note 3) | |||||||
Net Assets | $ | 3,303,175 | $ | 3,407,047 | |||
Components of Net Assets | |||||||
Common stock, par value $0.001 per share (1,000,000,000 common shares authorized; 366,055,966 and 364,409,938 issued and outstanding, respectively) (Note 9) | $ | 366 | $ | 364 | |||
Paid-in capital in excess of par (Note 9) | 4,032,761 | 4,021,541 | |||||
Accumulated overdistributed net investment income | (10,716 | ) | (45,186 | ) | |||
Accumulated net realized loss | (465,410 | ) | (465,493 | ) | |||
Net unrealized loss | (253,826 | ) | (104,179 | ) | |||
Net Assets | $ | 3,303,175 | $ | 3,407,047 | |||
Net Asset Value Per Share (Note 16) | $ | 9.02 | $ | 9.35 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Investment Income | |||||||||||||||
Interest income: | |||||||||||||||
Control investments | $ | 53,674 | $ | 47,418 | $ | 110,128 | $ | 93,448 | |||||||
Affiliate investments | 174 | — | 401 | 205 | |||||||||||
Non-control/non-affiliate investments | 68,679 | 75,833 | 137,288 | 148,263 | |||||||||||
Structured credit securities | 35,467 | 30,131 | 69,619 | 59,551 | |||||||||||
Total interest income | 157,994 | 153,382 | 317,436 | 301,467 | |||||||||||
Dividend income: | |||||||||||||||
Control investments | 13,000 | — | 27,665 | — | |||||||||||
Non-control/non-affiliate investments | 266 | 326 | 528 | 870 | |||||||||||
Total dividend income | 13,266 | 326 | 28,193 | 870 | |||||||||||
Other income: | |||||||||||||||
Control investments | 15,741 | 4,038 | 18,532 | 6,129 | |||||||||||
Non-control/non-affiliate investments | 882 | 4,654 | 4,144 | 12,513 | |||||||||||
Total other income (Note 10) | 16,623 | 8,692 | 22,676 | 18,642 | |||||||||||
Total Investment Income | 187,883 | 162,400 | 368,305 | 320,979 | |||||||||||
Operating Expenses | |||||||||||||||
Base management fee (Note 13) | 33,187 | 29,559 | 63,144 | 59,722 | |||||||||||
Income incentive fee (Note 13) | 20,203 | 18,298 | 41,493 | 34,231 | |||||||||||
Interest and credit facility expenses | 40,656 | 39,347 | 78,564 | 80,382 | |||||||||||
Allocation of overhead from Prospect Administration (Note 13) | 5,642 | (824 | ) | 9,007 | 2,704 | ||||||||||
Audit, compliance and tax related fees | 2,389 | 1,866 | 2,782 | 2,954 | |||||||||||
Directors’ fees | 150 | 112 | 229 | 225 | |||||||||||
Other general and administrative expenses | 4,845 | 850 | 7,116 | 3,837 | |||||||||||
Total Operating Expenses | 107,072 | 89,208 | 202,335 | 184,055 | |||||||||||
Net Investment Income | 80,811 | 73,192 | 165,970 | 136,924 | |||||||||||
Net Realized and Net Change in Unrealized Gains (Losses) from Investments | |||||||||||||||
Net realized gains (losses) | |||||||||||||||
Control investments | 2,801 | 2 | 2,802 | 11 | |||||||||||
Affiliate investments | — | — | — | 846 | |||||||||||
Non-control/non-affiliate investments | 192 | (5,675 | ) | 1,232 | (5,093 | ) | |||||||||
Net realized gains (losses) | 2,993 | (5,673 | ) | 4,034 | (4,236 | ) | |||||||||
Net change in unrealized (losses) gains | |||||||||||||||
Control investments | (85,733 | ) | 44,425 | (33,815 | ) | 45,518 | |||||||||
Affiliate investments | (5,894 | ) | 1,533 | (19,649 | ) | 6,726 | |||||||||
Non-control/non-affiliate investments | (59,069 | ) | 8,737 | (96,183 | ) | (50,300 | ) | ||||||||
Net change in unrealized (losses) gains | (150,696 | ) | 54,695 | (149,647 | ) | 1,944 | |||||||||
Net Realized and Net Change in Unrealized (Losses) Gains from Investments | (147,703 | ) | 49,022 | (145,613 | ) | (2,292 | ) | ||||||||
Net realized losses on extinguishment of debt | (497 | ) | (487 | ) | (3,951 | ) | (932 | ) | |||||||
Net (Decrease) Increase in Net Assets Resulting from Operations | $ | (67,389 | ) | $ | 121,727 | $ | 16,406 | $ | 133,700 | ||||||
Net (decrease) increase in net assets resulting from operations per share | $ | (0.18 | ) | $ | 0.34 | $ | 0.04 | $ | 0.37 | ||||||
Dividends declared per share | $ | (0.18 | ) | $ | (0.18 | ) | $ | (0.36 | ) | $ | (0.41 | ) |
Six Months Ended December 31, | |||||||
2018 | 2017 | ||||||
Operations | |||||||
Net investment income | $ | 165,970 | $ | 136,924 | |||
Net realized gains (losses) | 83 | (5,168 | ) | ||||
Net change in net unrealized (losses) gains | (149,647 | ) | 1,944 | ||||
Net Increase in Net Assets Resulting from Operations | 16,406 | 133,700 | |||||
Distributions to Shareholders | |||||||
Distribution from net investment income | (131,531 | ) | (146,559 | ) | |||
Net Decrease in Net Assets Resulting from Distributions to Shareholders | (131,531 | ) | (146,559 | ) | |||
Common Stock Transactions | |||||||
Value of shares issued through reinvestment of dividends | 11,253 | 6,319 | |||||
Net Increase in Net Assets Resulting from Common Stock Transactions | 11,253 | 6,319 | |||||
Total Decrease in Net Assets | (103,872 | ) | (6,540 | ) | |||
Net assets at beginning of period | 3,407,047 | 3,354,952 | |||||
Net Assets at End of Period (Accumulated Overdistributed Net Investment Income of $10,716 and $64,446, respectively) | $ | 3,303,175 | $ | 3,348,412 | |||
Common Stock Activity | |||||||
Shares issued through reinvestment of dividends | 1,646,028 | 903,819 | |||||
Shares issued and outstanding at beginning of period | 364,409,938 | 360,076,933 | |||||
Shares Issued and Outstanding at End of Period | 366,055,966 | 360,980,752 |
Six Months Ended December 31, | |||||||
2018 | 2017 | ||||||
Operating Activities | |||||||
Net increase in net assets resulting from operations | $ | 16,406 | $ | 133,700 | |||
Net realized losses on extinguishment of debt | 3,951 | 932 | |||||
Net realized (gains) losses on investments | (4,034 | ) | 4,236 | ||||
Net change in net unrealized losses (gains) on investments | 149,647 | (1,944 | ) | ||||
(Accretion of premiums) and amortization of discounts, net | (120 | ) | 22,607 | ||||
Accretion of discount on Public Notes (Note 6) | 235 | 141 | |||||
Amortization of deferred financing costs | 6,343 | 6,219 | |||||
Payment-in-kind interest | (19,306 | ) | (3,980 | ) | |||
Structuring fees | (3,434 | ) | (5,531 | ) | |||
Change in operating assets and liabilities: | |||||||
Payments for purchases of investments | (458,154 | ) | (951,377 | ) | |||
Proceeds from sale of investments and collection of investment principal | 220,110 | 1,353,163 | |||||
Decrease in due to broker | (6,159 | ) | (50,371 | ) | |||
Increase (decrease) in due to Prospect Capital Management | 2,256 | (620 | ) | ||||
Decrease (increase) in interest receivable, net | 12,120 | (4,873 | ) | ||||
(Decrease) increase in interest payable | (766 | ) | 550 | ||||
Increase (decrease) in accrued expenses | 79 | (765 | ) | ||||
Decrease (increase) in due from broker | 2,449 | (600 | ) | ||||
(Decrease) increase in other liabilities | (144 | ) | 52 | ||||
Decrease in other receivables | 1,630 | 161 | |||||
Increase in due from Prospect Administration | — | (2,082 | ) | ||||
Increase in due from affiliate | — | (74 | ) | ||||
Decrease in prepaid expenses | 416 | 579 | |||||
(Decrease) Increase in due to Prospect Administration | (427 | ) | 25 | ||||
Net Cash (Used in) Provided by Operating Activities | (76,902 | ) | 500,148 | ||||
Financing Activities | |||||||
Borrowings under Revolving Credit Facility (Note 4) | 746,791 | 341,000 | |||||
Principal payments under Revolving Credit Facility (Note 4) | (486,791 | ) | (341,000 | ) | |||
Issuances of Public Notes, net of original issue discount (Note 6) | 182,427 | — | |||||
Redemptions of Public Notes (Note 6) | (153,536 | ) | — | ||||
Redemptions of Convertible Notes (Note 5) | — | (50,734 | ) | ||||
Repurchase of Convertible Notes, net (Note 5) | (13,433 | ) | — | ||||
Issuances of Prospect Capital InterNotes® (Note 7) | 69,586 | 52,177 | |||||
Redemptions of Prospect Capital InterNotes®, net (Note 7) | (104,851 | ) | (195,174 | ) | |||
Financing costs paid and deferred | (17,201 | ) | (1,437 | ) | |||
Dividends paid | (120,180 | ) | (148,587 | ) | |||
Net Cash Provided by (Used in) Financing Activities | 102,812 | (343,755 | ) | ||||
Net Increase in Cash | 25,910 | 156,393 | |||||
Cash at beginning of period | 83,758 | 318,083 | |||||
Cash at End of Period | $ | 109,668 | $ | 474,476 | |||
Supplemental Disclosures | |||||||
Cash paid for interest | $ | 72,752 | $ | 73,472 | |||
Non-Cash Financing Activities | |||||||
Value of shares issued through reinvestment of dividends | $ | 11,253 | $ | 6,319 | |||
Cost basis of investments written off as worthless | $ | — | $ | 5,662 |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Control Investments (greater than 25.00% voting control)(47) | |||||||||||||
CCPI Inc.(19) | Electronic Equipment, Instruments & Components | Senior Secured Term Loan A (10.00%, due 12/31/2020)(3) | 12/13/2012 | $ | 2,797 | $ | 2,797 | $ | 2,797 | 0.1% | |||
Senior Secured Term Loan B (12.00% plus 7.00% PIK, due 12/31/2020)(3)(46) | 12/13/2012 | 17,566 | 17,566 | 17,566 | 0.5% | ||||||||
Common Stock (14,857 shares)(16) | 12/13/2012 | 6,759 | 20,919 | 0.6% | |||||||||
27,122 | 41,282 | 1.2% | |||||||||||
CP Energy Services Inc.(20) | Energy Equipment & Services | Senior Secured Term Loan (13.81% (LIBOR + 11.00% with 1.00% LIBOR floor), due 12/29/2022)(11) | 12/29/2017 | 35,048 | 35,048 | 35,048 | 1.1% | ||||||
Series B Convertible Preferred Stock (16.00%, 790 shares)(16) | 10/30/2015 | 63,225 | 63,225 | 1.9% | |||||||||
Common Stock (102,924 shares)(16) | 8/2/2013 | 81,203 | 31,945 | 1.0% | |||||||||
179,476 | 130,218 | 4.0% | |||||||||||
Credit Central Loan Company, LLC(21) | Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2024)(14)(46) | 6/24/2014 | 53,631 | 50,180 | 53,631 | 1.6% | ||||||
Class A Units (10,640,642 units)(14)(16) | 6/24/2014 | 13,731 | 14,292 | 0.5% | |||||||||
Net Revenues Interest (25% of Net Revenues)(14)(16) | 1/28/2015 | — | 938 | —% | |||||||||
63,911 | 68,861 | 2.1% | |||||||||||
Echelon Transportation, LLC | Aerospace & Defense | Senior Secured Term Loan (11.83% (LIBOR + 9.75% with 2.00% LIBOR floor) plus 2.25% PIK, due 3/31/2022)(13)(46) | 3/31/2014 | 33,811 | 33,811 | 33,811 | 1.0% | ||||||
Senior Secured Term Loan (11.08% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.00% PIK, due 12/7/2024)(13)(46) | 12/9/2016 | 17,012 | 17,012 | 17,012 | 0.5% | ||||||||
Membership Interest (100%)(16) | 3/31/2014 | 22,738 | 40,997 | 1.3% | |||||||||
73,561 | 91,820 | 2.8% | |||||||||||
First Tower Finance Company LLC(23) | Consumer Finance | Subordinated Term Loan to First Tower, LLC (10.00% plus 10.00% PIK, due 6/24/2019)(14)(46) | 6/24/2014 | 272,170 | 272,170 | 272,170 | 8.2% | ||||||
Class A Units (95,709,910 units)(14)(16) | 6/24/2014 | 81,146 | 173,197 | 5.3% | |||||||||
353,316 | 445,367 | 13.5% | |||||||||||
Freedom Marine Solutions, LLC(24) | Energy Equipment & Services | Membership Interest (100%)(16) | 10/1/2009 | 43,892 | 10,024 | 0.3% | |||||||
43,892 | 10,024 | 0.3% | |||||||||||
InterDent, Inc.(52) | Health Care Providers & Services | Senior Secured Term Loan A (8.03% (LIBOR + 5.50% with 0.75% LIBOR floor), due 9/5/2020)(13) | 8/3/2012 | 77,994 | 77,994 | 77,994 | 2.4% | ||||||
Senior Secured Term Loan B (16.00% PIK, due 9/5/2020)(46) | 8/3/2012 | 107,397 | 107,397 | 107,397 | 3.2% | ||||||||
Senior Secured Term Loan A/B (2.78% (LIBOR + 0.25% with 0.75% LIBOR floor), due 9/5/2020)(13) | 8/1/2018 | 14,000 | 14,000 | 14,000 | 0.4% | ||||||||
Senior Secured Term Loan C (18.00% PIK, in non-accrual status effective 10/1/2018, due 9/5/2020) | 3/22/2018 | 37,447 | 35,766 | 21,967 | 0.7% | ||||||||
Senior Secured Term Loan D (1.00% PIK, in non-accrual status effective 10/1/2018, due 9/5/2020) | 9/19/2018 | 5,014 | 5,001 | — | —% | ||||||||
Warrants (to purchase 99,900 shares of Common Stock, expires 9/19/2030)(16) | 2/23/2018 | — | — | —% | |||||||||
240,158 | 221,358 | 6.7% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Control Investments (greater than 25.00% voting control)(47) | |||||||||||||
MITY, Inc.(25) | Commercial Services & Supplies | Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 1/30/2020)(3)(11) | 9/19/2013 | $ | 26,250 | $ | 26,250 | $ | 26,250 | 0.8% | |||
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 1/30/2020)(3)(11)(46) | 6/23/2014 | 25,498 | 25,498 | 25,498 | 0.8% | ||||||||
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due 1/1/2028)(14) | 9/19/2013 | 5,402 | 7,200 | 451 | —% | ||||||||
Common Stock (42,053 shares)(16) | 9/19/2013 | 6,849 | — | —% | |||||||||
65,797 | 52,199 | 1.6% | |||||||||||
National Property REIT Corp.(26) | Equity Real Estate Investment Trusts (REITs) / Online Lending | Senior Secured Term Loan A (6.50% (LIBOR + 3.50% with 3.00% LIBOR floor) plus 5.00% PIK, due 12/31/2023)(11)(46) | 12/31/2018 | 433,553 | 433,553 | 433,553 | 13.1% | ||||||
Senior Secured Term Loan B (5.00% (LIBOR + 2.00% with 3.00% LIBOR floor) plus 5.50% PIK, due 12/31/2023)(11)(46) | 12/31/2018 | 205,000 | 205,000 | 205,000 | 6.2% | ||||||||
Common Stock (3,110,101 shares) | 12/31/2013 | 163,836 | 283,430 | 8.6% | |||||||||
Residual Profit Interest (25% of Residual Profit) | 12/31/2018 | — | 94,476 | 2.9% | |||||||||
— | 802,389 | 1,016,459 | 30.8% | ||||||||||
Nationwide Loan Company LLC(27) | Consumer Finance | Senior Subordinated Term Loan to Nationwide Acceptance LLC (10.00% plus 10.00% PIK, due 6/18/2019)(14)(46) | 6/18/2014 | 17,854 | 17,854 | 17,854 | 0.5% | ||||||
Class A Units (32,456,159 units)(14)(16) | 1/31/2013 | 21,962 | 13,413 | 0.4% | |||||||||
39,816 | 31,267 | 0.9% | |||||||||||
NMMB, Inc.(28) | Media | Senior Secured Note (14.00%, due 5/6/2021)(3) | 5/6/2011 | 3,714 | 3,714 | 3,714 | 0.1% | ||||||
Senior Secured Note to Armed Forces Communications, Inc. (14.00%, due 5/6/2021)(3) | 6/12/2014 | 3,900 | 3,900 | 3,900 | 0.1% | ||||||||
Series A Preferred Stock (7,200 shares)(16) | 12/12/2013 | 7,200 | 9,193 | 0.3% | |||||||||
Series B Preferred Stock (5,669 shares)(16) | 12/12/2013 | 5,669 | 7,239 | 0.2% | |||||||||
20,483 | 24,046 | 0.7% | |||||||||||
Pacific World Corporation(40) | Personal Products | Revolving Line of Credit – $26,000 Commitment (9.76% (LIBOR + 7.25% with 1.00% LIBOR floor), due 9/26/2020)(13)(15) | 9/26/2014 | 20,825 | 20,825 | 20,825 | 0.6% | ||||||
Senior Secured Term Loan A (7.76% (LIBOR + 5.25% with 1.00% LIBOR floor), in non-accrual status effective 10/24/2018, due 9/26/2020)(13) | 12/31/2014 | 97,273 | 96,000 | 97,273 | 3.0% | ||||||||
Senior Secured Term Loan B (11.76% PIK (LIBOR + 9.25% with 1.00% LIBOR floor), in non-accrual status effective 5/21/2018, due 9/26/2020)(13) | 12/31/2014 | 102,163 | 96,500 | 14,432 | 0.4% | ||||||||
Convertible Preferred Equity (100,000 shares)(16) | 6/15/2018 | 15,000 | — | —% | |||||||||
Common Stock (6,778,414 shares)(16) | 9/29/2017 | — | — | —% | |||||||||
228,325 | 132,530 | 4.0% | |||||||||||
R-V Industries, Inc. | Machinery | Senior Subordinated Note (11.81% (LIBOR + 9.00% with 1.00% LIBOR floor), due 3/31/2022)(3)(11) | 6/12/2013 | 28,622 | 28,622 | 24,670 | 0.7% | ||||||
Common Stock (745,107 shares)(16) | 6/26/2007 | 6,866 | — | —% | |||||||||
35,488 | 24,670 | 0.7% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Control Investments (greater than 25.00% voting control)(47) | |||||||||||||
Universal Turbine Parts, LLC(54) | Trading Companies & Distributors | Senior Secured Term Loan A (8.56% (LIBOR + 5.75% with 1.00% LIBOR floor), due 7/22/2021)(11) | 7/22/2016 | $ | 31,038 | $ | 31,038 | $ | 31,038 | 0.9% | |||
Senior Secured Term Loan B (14.56% PIK (LIBOR + 11.75% with 1.00% LIBOR floor), in non-accrual status effective 7/1/2018, due 7/22/2021)(11) | 7/22/2016 | 34,861 | 32,500 | 5,794 | 0.2% | ||||||||
Common Stock (10,000 units)(16) | 12/10/2018 | — | — | —% | |||||||||
63,538 | 36,832 | 1.1% | |||||||||||
USES Corp.(30) | Commercial Services & Supplies | Senior Secured Term Loan A (9.00% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | 3/31/2014 | 42,505 | 35,101 | 16,061 | 0.5% | ||||||
Senior Secured Term Loan B (15.50% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | 3/31/2014 | 52,455 | 35,568 | — | —% | ||||||||
Common Stock (268,962 shares)(16) | 6/15/2016 | — | — | —% | |||||||||
70,669 | 16,061 | 0.5% | |||||||||||
Valley Electric Company, Inc.(31) | Construction & Engineering | Senior Secured Note to Valley Electric Co. of Mt. Vernon, Inc. (8.00% (LIBOR + 5.00% with 3.00% LIBOR floor) plus 2.50% PIK, due 12/31/2024)(3)(11)(46) | 12/31/2012 | 10,430 | 10,430 | 10,430 | 0.3% | ||||||
Senior Secured Note (8.00% plus 10.00% PIK, due 6/23/2024)(46) | 6/24/2014 | 32,881 | 32,881 | 32,881 | 1.0% | ||||||||
Consolidated Revenue Interest (2.0%)(38) | 6/22/2018 | — | 3,113 | 0.1% | |||||||||
Common Stock (50,000 shares) | 12/31/2012 | 26,204 | 43,334 | 1.3% | |||||||||
69,515 | 89,758 | 2.7% | |||||||||||
Wolf Energy, LLC(32) | Energy Equipment & Services | Membership Interest (100%)(16) | 7/1/2014 | — | — | —% | |||||||
Membership Interest in Wolf Energy Services Company, LLC (100%)(16) | 3/14/2017 | 3,896 | — | —% | |||||||||
Net Profits Interest (8% of Equity Distributions)(4)(16) | 4/15/2013 | — | 14 | —% | |||||||||
3,896 | 14 | —% | |||||||||||
Total Control Investments (Level 3) | $ | 2,381,352 | $ | 2,432,766 | 73.6% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Affiliate Investments (5.00% to 24.99% voting control)(48) | |||||||||||||
Edmentum Ultimate Holdings, LLC(22) | Diversified Consumer Services | Second Lien Revolving Credit Facility to Edmentum, Inc. – $7,834 Commitment (5.00% PIK, due 12/9/2021)(15)(46) | 6/9/2015 | $ | 1,772 | $ | 1,772 | $ | 1,772 | 0.1% | |||
Unsecured Senior PIK Note (8.50% PIK, due 12/9/2021)(46) | 6/9/2015 | 7,850 | 7,850 | 7,850 | 0.2% | ||||||||
Unsecured Junior PIK Note (10.00% PIK, in non-accrual status effective 1/1/2017, due 12/9/2021) | 6/9/2015 | 37,050 | 23,829 | 17,732 | 0.5% | ||||||||
Class A Units (370,964 units)(16) | 6/9/2015 | 6,577 | — | —% | |||||||||
40,028 | 27,354 | 0.8% | |||||||||||
Nixon, Inc.(39) | Textiles, Apparel & Luxury Goods | Common Stock (857 units)(16) | 5/12/2017 | — | — | —% | |||||||
— | — | —% | |||||||||||
Targus Cayman HoldCo Limited(33) | Textiles, Apparel & Luxury Goods | Common Stock (7,383,395 shares)(16) | 5/24/2011 | 9,878 | 21,537 | 0.7% | |||||||
9,878 | 21,537 | 0.7% | |||||||||||
United Sporting Companies, Inc.(18) | Distributors | Second Lien Term Loan (13.53% (LIBOR + 11.00% with 1.75% LIBOR floor) plus 2.00% PIK, in non-accrual status effective 4/1/2017, due 11/16/2019)(13) | 9/28/2012 | 160,922 | 127,091 | 42,970 | 1.3% | ||||||
Common Stock (218,941 shares)(16) | 5/2/2017 | — | — | —% | |||||||||
127,091 | 42,970 | 1.3% | |||||||||||
Total Affiliate Investments (Level 3) | $ | 176,997 | $ | 91,861 | 2.8% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
8TH Avenue Food & Provisions, Inc. | Food Products | Second Lien Term Loan (10.10% (LIBOR + 7.75%), due 10/1/2026)(3)(8)(13) | 10/10/2018 | $ | 25,000 | $ | 24,817 | $ | 24,805 | 0.8% | |||
24,817 | 24,805 | 0.8% | |||||||||||
ACE Cash Express, Inc. | Consumer Finance | Senior Secured Note (12.00%, due 12/15/2022)(8)(14) | 12/15/2017 | 18,000 | 17,762 | 15,705 | 0.5% | ||||||
17,762 | 15,705 | 0.5% | |||||||||||
AgaMatrix, Inc. | Health Care Equipment & Supplies | Senior Secured Term Loan (11.81% (LIBOR + 9.00% with 1.25% LIBOR floor), due 9/29/2022)(3)(11) | 9/29/2017 | 34,945 | 34,945 | 33,780 | 1.0% | ||||||
34,945 | 33,780 | 1.0% | |||||||||||
Apidos CLO IX | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 7/15/2023)(5)(14)(17) | 7/11/2012 | 23,525 | 21 | 56 | —% | ||||||
21 | 56 | —% | |||||||||||
Apidos CLO XI | Structured Finance | Subordinated Notes (Residual Interest, current yield 8.84%, due 10/17/2028)(5)(14) | 1/17/2013 | 40,500 | 33,007 | 26,403 | 0.8% | ||||||
33,007 | 26,403 | 0.8% | |||||||||||
Apidos CLO XII | Structured Finance | Subordinated Notes (Residual Interest, current yield 14.80%, due 4/15/2031)(5)(14) | 4/18/2013 | 52,203 | 35,005 | 26,950 | 0.8% | ||||||
35,005 | 26,950 | 0.8% | |||||||||||
Apidos CLO XV | Structured Finance | Subordinated Notes (Residual Interest, current yield 13.73%, due 4/20/2031)(5)(14) | 10/16/2013 | 48,515 | 36,642 | 26,101 | 0.8% | ||||||
36,642 | 26,101 | 0.8% | |||||||||||
Apidos CLO XXII | Structured Finance | Subordinated Notes (Residual Interest, current yield 10.81%, due 10/20/2027)(5)(6)(14) | 10/14/2015 | 31,350 | 28,248 | 24,557 | 0.7% | ||||||
28,248 | 24,557 | 0.7% | |||||||||||
Ark-La-Tex Wireline Services, LLC | Energy Equipment & Services | Senior Secured Term Loan B (14.02% (LIBOR + 11.50% with 1.00% LIBOR floor), in non-accrual status effective 4/1/2016, due 4/8/2019)(13) | 4/8/2014 | 25,595 | 1,145 | 770 | —% | ||||||
1,145 | 770 | —% | |||||||||||
Atlantis Health Care Group (Puerto Rico), Inc. | Health Care Providers & Services | Revolving Line of Credit – $7,000 Commitment (11.30% (LIBOR + 8.50% with 1.50% LIBOR floor), due 8/21/2019)(11)(15) | 2/21/2013 | 4,000 | 4,000 | 3,911 | 0.1% | ||||||
Senior Term Loan (11.30% (LIBOR + 8.50% with 1.50% LIBOR floor), due 2/21/2020)(3)(11) | 2/21/2013 | 77,306 | 77,306 | 75,585 | 2.3% | ||||||||
81,306 | 79,496 | 2.4% | |||||||||||
Autodata, Inc./ Autodata Solutions, Inc.(9) | Software | Second Lien Term Loan (9.77% (LIBOR + 7.25%), due 12/12/2025)(3)(8)(13) | 12/14/2017 | 6,000 | 5,974 | 5,957 | 0.2% | ||||||
5,974 | 5,957 | 0.2% | |||||||||||
Barings CLO 2018-III (f/k/a Babson CLO Ltd. 2014-III) | Structured Finance | Subordinated Notes (Residual Interest, current yield 14.13%, due 7/20/2029)(5)(6)(14) | 6/14/2018 | 83,098 | 51,236 | 42,011 | 1.3% | ||||||
51,236 | 42,011 | 1.3% | |||||||||||
Broder Bros., Co. | Textiles, Apparel & Luxury Goods | Senior Secured Note (11.31% (LIBOR + 8.50% with 1.25% LIBOR floor), due 12/02/2022)(3)(11) | 12/4/2017 | 271,227 | 271,227 | 271,227 | 8.2% | ||||||
271,227 | 271,227 | 8.2% | |||||||||||
Brookside Mill CLO Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 8.73%, due 1/18/2028)(5)(14) | 5/23/2013 | 36,300 | 18,783 | 13,580 | 0.4% | ||||||
18,783 | 13,580 | 0.4% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
California Street CLO IX Ltd. (f/k/a Symphony CLO IX Ltd.) | Structured Finance | Preference Shares (Residual Interest, current yield 9.97%, due 10/16/2028)(5)(14) | 5/8/2012 | $ | 58,915 | $ | 41,900 | $ | 34,790 | 1.1% | |||
41,900 | 34,790 | 1.1% | |||||||||||
Candle-Lite Company, LLC | Household Products | Senior Secured Term Loan A (8.21% (LIBOR + 5.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11) | 1/23/2018 | 12,313 | 12,313 | 12,313 | 0.4% | ||||||
Senior Secured Term Loan B (12.21% (LIBOR + 9.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11) | 1/23/2018 | 12,500 | 12,500 | 12,500 | 0.4% | ||||||||
24,813 | 24,813 | 0.8% | |||||||||||
Capstone Logistics Acquisition, Inc. | Commercial Services & Supplies | Second Lien Term Loan (10.77% (LIBOR + 8.25% with 1.00% LIBOR floor), due 10/7/2022)(3)(8)(13) | 10/7/2014 | 101,030 | 100,711 | 101,030 | 3.1% | ||||||
100,711 | 101,030 | 3.1% | |||||||||||
Carlyle Global Market Strategies CLO 2014-4-R, Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 22.13%, due 7/15/2030)(5)(6)(14) | 6/29/2018 | 25,534 | 16,528 | 18,309 | 0.6% | ||||||
16,528 | 18,309 | 0.6% | |||||||||||
Carlyle Global Market Strategies CLO 2016-3, Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 17.17%, due 10/20/2029)(5)(6)(14) | 9/13/2016 | 32,200 | 33,301 | 28,715 | 0.9% | ||||||
33,301 | 28,715 | 0.9% | |||||||||||
Carlyle C17 CLO Limited (f/k/a Cent CLO 17 Limited) | Structured Finance | Subordinated Notes (Residual Interest, current yield 19.48%, due 4/30/2031)(5)(14) | 5/10/2018 | 24,870 | 14,130 | 12,251 | 0.4% | ||||||
14,130 | 12,251 | 0.4% | |||||||||||
CCS-CMGC Holdings, Inc. | Health Care Providers & Services | Second Lien Term Loan (11.52% (LIBOR + 9.00%), due 10/1/2026)(3)(8)(13) | 10/12/2018 | 35,000 | 34,318 | 33,625 | 1.0% | ||||||
34,318 | 33,625 | 1.0% | |||||||||||
Cent CLO 21 Limited | Structured Finance | Subordinated Notes (Residual Interest, current yield 15.75%, due 7/27/2030)(5)(6)(14) | 6/18/2014 | 49,552 | 37,238 | 30,591 | 0.9% | ||||||
37,238 | 30,591 | 0.9% | |||||||||||
Cent CLO 21 Limited | Structured Finance | Class E Notes (12.66% (LIBOR + 8.65%), due 7/27/2030)(6)(11)(14)(37) | 7/27/2018 | 10,591 | 9,995 | 10,793 | 0.3% | ||||||
9,995 | 10,793 | 0.3% | |||||||||||
Columbia Cent CLO 27 Limited | Structured Finance | Subordinated Notes (Residual Interest, current yield 14.52%, due 10/25/2028)(5)(14) | 1/15/2014 | 40,275 | 21,719 | 25,733 | 0.8% | ||||||
21,719 | 25,733 | 0.8% | |||||||||||
Columbia Cent CLO 27 Limited | Structured Finance | Class E Notes (11.86% (LIBOR + 8.29%), due 10/25/2028)(11)(14)(37) | 10/25/2018 | 7,450 | 7,237 | 7,448 | 0.2% | ||||||
7,237 | 7,448 | 0.2% | |||||||||||
Centerfield Media Holding Company(35) | IT Services | Senior Secured Term Loan A (9.81% (LIBOR + 7.00% with 2.00% LIBOR floor), due 1/17/2022)(3)(11) | 1/17/2017 | 74,842 | 74,842 | 74,842 | 2.3% | ||||||
Senior Secured Term Loan B (15.31% (LIBOR + 12.50% with 2.00% LIBOR floor), due 1/17/2022)(11) | 1/17/2017 | 78,100 | 78,100 | 78,100 | 2.4% | ||||||||
152,942 | 152,942 | 4.7% | |||||||||||
CIFC Funding 2013-III-R, Ltd. (f/k/a CIFC Funding 2013-III, Ltd.) | Structured Finance | Subordinated Notes (Residual Interest, current yield 14.92%, due 4/24/2031)(5)(14) | 4/5/2018 | 44,100 | 29,113 | 24,641 | 0.7% | ||||||
29,113 | 24,641 | 0.7% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
CIFC Funding 2013-IV, Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 16.95%, due 4/28/2031)(5)(14) | 11/14/2013 | $ | 45,500 | $ | 32,020 | $ | 27,080 | 0.8% | |||
32,020 | 27,080 | 0.8% | |||||||||||
CIFC Funding 2014-IV-R, Ltd. | Structured Finance | Income Notes (Residual Interest, current yield 13.97%, due 10/17/2030)(5)(6)(14) | 9/3/2014 | 44,467 | 30,057 | 23,952 | 0.7% | ||||||
30,057 | 23,952 | 0.7% | |||||||||||
CIFC Funding 2014-V, Ltd. | Structured Finance | Class F Notes (12.03% (LIBOR + 8.50%), due 10/17/2031)(6)(11)(14)(37) | 9/27/2018 | 10,250 | 9,963 | 10,348 | 0.3% | ||||||
9,963 | 10,348 | 0.3% | |||||||||||
CIFC Funding 2016-I, Ltd. | Structured Finance | Income Notes (Residual Interest, current yield 13.60%, due 10/21/2028)(5)(6)(14) | 12/21/2016 | 34,000 | 31,141 | 28,320 | 0.9% | ||||||
31,141 | 28,320 | 0.9% | |||||||||||
Cinedigm DC Holdings, LLC | Entertainment | Senior Secured Term Loan (11.81% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021)(11)(46) | 2/28/2013 | 26,405 | 26,355 | 26,405 | 0.8% | ||||||
26,355 | 26,405 | 0.8% | |||||||||||
Class Valuation, LLC (f/k/a Class Appraisal, LLC) | Real Estate Management & Development | Revolving Line of Credit – $1,500 Commitment (11.06% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/12/2020)(11)(15) | 3/12/2018 | — | — | — | —% | ||||||
Senior Secured Term Loan (11.06% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/10/2023)(3)(11) | 3/12/2018 | 41,370 | 41,370 | 41,370 | 1.3% | ||||||||
41,370 | 41,370 | 1.3% | |||||||||||
Coverall North America, Inc. | Commercial Services & Supplies | Senior Secured Term Loan A (8.81% (LIBOR + 6.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11) | 11/2/2015 | 13,975 | 13,975 | 13,975 | 0.4% | ||||||
Senior Secured Term Loan B (13.81% (LIBOR + 11.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11) | 11/2/2015 | 24,125 | 24,125 | 24,125 | 0.8% | ||||||||
38,100 | 38,100 | 1.2% | |||||||||||
CP VI Bella Midco | IT Services | Second Lien Term Loan (9.27% (LIBOR + 6.75%, due 12/29/2025)(3)(8)(13) | 12/28/2017 | 11,500 | 11,487 | 11,376 | 0.3% | ||||||
11,487 | 11,376 | 0.3% | |||||||||||
Digital Room, LLC | Commercial Services & Supplies | First Lien Term Loan (7.53% (LIBOR + 5.00% with 1.00% LIBOR floor), due 12/29/2023)(3)(8)(13) | 2/9/2018 | 9,900 | 9,816 | 9,900 | 0.3% | ||||||
Second Lien Term Loan (11.28% (LIBOR + 8.75% with 1.00% LIBOR floor), due 12/29/2024)(3)(8)(13) | 2/8/2018 | 57,100 | 56,357 | 57,100 | 1.7% | ||||||||
66,173 | 67,000 | 2.0% | |||||||||||
Dunn Paper, Inc. | Paper & Forest Products | Second Lien Term Loan (11.27% (LIBOR + 8.75% with 1.00% LIBOR floor), due 8/26/2023)(3)(8)(13) | 10/7/2016 | 11,500 | 11,345 | 11,345 | 0.3% | ||||||
11,345 | 11,345 | 0.3% | |||||||||||
Dynatrace, LLC | Software | Second Lien Term Loan (9.52% (LIBOR + 7.00%), due 8/23/2026)(3)(8)(13) | 8/23/2018 | 2,735 | 2,728 | 2,728 | 0.1% | ||||||
2,728 | 2,728 | 0.1% | |||||||||||
Easy Gardener Products, Inc. | Household Durables | Senior Secured Term Loan (12.81% (LIBOR + 10.00% with 0.25% LIBOR floor), due 09/30/2020)(3)(11) | 10/2/2015 | 16,056 | 16,056 | 14,923 | 0.5% | ||||||
16,056 | 14,923 | 0.5% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Engine Group, Inc.(7) | Media | Senior Secured Term Loan (7.80% (LIBOR + 5.00% with 1.00% LIBOR floor), due 9/15/2022)(8)(11) | 9/25/2017 | $ | 4,650 | $ | 4,650 | $ | 4,583 | 0.1% | |||
Second Lien Term Loan (11.80% (LIBOR + 9.00% with 1.00% LIBOR floor), due 9/15/2023)(3)(8)(11) | 9/25/2017 | 35,000 | 35,000 | 30,000 | 0.9% | ||||||||
39,650 | 34,583 | 1.0% | |||||||||||
EXC Holdings III Corp | Technology Hardware, Storage & Peripherals | Second Lien Term Loan (9.85% (LIBOR + 7.50% with 1.00% LIBOR floor), due 12/01/2025)(3)(8)(13) | 12/5/2017 | 12,500 | 12,392 | 12,114 | 0.4% | ||||||
12,392 | 12,114 | 0.4% | |||||||||||
Galaxy XV CLO, Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 12.30%, due 10/15/2030)(5)(14) | 3/14/2013 | 50,525 | 35,571 | 27,837 | 0.8% | ||||||
35,571 | 27,837 | 0.8% | |||||||||||
Galaxy XXVII CLO, Ltd. (f/k/a Galaxy XVI CLO, Ltd.) | Structured Finance | Subordinated Notes (Residual Interest, current yield 10.84%, due 5/16/2031)(5)(14) | 4/17/2018 | 24,575 | 16,599 | 12,508 | 0.4% | ||||||
16,599 | 12,508 | 0.4% | |||||||||||
Galaxy XXVIII CLO, Ltd. (f/k/a Galaxy XVII CLO, Ltd.) | Structured Finance | Subordinated Notes (Residual Interest, current yield 11.87%, due 7/15/2031)(5)(6)(14) | 6/27/2014 | 39,905 | 29,052 | 20,331 | 0.6% | ||||||
29,052 | 20,331 | 0.6% | |||||||||||
Galaxy XXVIII CLO, Ltd. | Structured Finance | Class F Junior Note (12.70% (LIBOR + 8.48%), due 7/15/2031)(6)(11)(14)(37) | 7/16/2018 | 6,658 | 6,187 | 6,770 | 0.2% | ||||||
6,187 | 6,770 | 0.2% | |||||||||||
Global Tel*Link Corporation | Diversified Telecommunication Services | Second Lien Term Loan (10.96% (LIBOR + 8.25%), due 11/29/2026)(8)(11) | 12/4/2018 | 25,000 | 24,567 | 24,567 | 0.7% | ||||||
24,567 | 24,567 | 0.7% | |||||||||||
GlobalTranz Enterprises, Inc. | Air Freight & Logistics | Second Lien Term Loan (10.52% (LIBOR + 8.00%), due 10/16/2026)(3)(8)(13) | 10/25/2018 | 12,500 | 12,316 | 12,316 | 0.4% | ||||||
12,316 | 12,316 | 0.4% | |||||||||||
H.I.G. ECI Merger Sub, Inc. | IT Services | Senior Secured Term Loan A (8.31% (LIBOR + 5.50% with 1.50% LIBOR floor), due 5/31/2023)(3)(11) | 5/31/2018 | 44,464 | 44,464 | 44,464 | 1.3% | ||||||
Senior Secured Term Loan B (13.31% (LIBOR + 10.50% with 1.50% LIBOR floor), due 5/31/2023)(3)(11) | 5/31/2018 | 29,900 | 29,900 | 29,387 | 0.9% | ||||||||
74,364 | 73,851 | 2.2% | |||||||||||
Halcyon Loan Advisors Funding 2012-1 Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 8/15/2023)(5)(14)(17) | 8/21/2012 | 23,188 | 3,823 | 1,463 | —% | ||||||
3,823 | 1,463 | —% | |||||||||||
Halcyon Loan Advisors Funding 2013-1 Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 4/15/2025)(5)(14)(17) | 3/28/2013 | 40,400 | 20,715 | 14,281 | 0.4% | ||||||
20,715 | 14,281 | 0.4% | |||||||||||
Halcyon Loan Advisors Funding 2014-1 Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 4/18/2026)(5)(14)(17) | 3/6/2014 | 24,500 | 12,715 | 8,252 | 0.2% | ||||||
12,715 | 8,252 | 0.2% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Halcyon Loan Advisors Funding 2014-2 Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 4/28/2025)(5)(6)(14)(17) | 4/28/2014 | $ | 41,164 | $ | 22,238 | $ | 12,941 | 0.4% | |||
22,238 | 12,941 | 0.4% | |||||||||||
Halcyon Loan Advisors Funding 2015-3 Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 18.31%, due 10/18/2027)(5)(6)(14) | 9/3/2015 | 39,598 | 34,074 | 30,322 | 0.9% | ||||||
34,074 | 30,322 | 0.9% | |||||||||||
Halyard MD OPCO, LLC | Media | Revolving Line of Credit – $2,000 Commitment (10.81% (LIBOR + 8.00%), due 2/6/2020)(11)(15) | 8/6/2018 | — | — | — | —% | ||||||
First Lien Term Loan (10.81% (LIBOR + 8.00% with 2.00% LIBOR floor), due 8/6/2023)(3)(11) | 8/6/2018 | 11,850 | 11,850 | 11,850 | 0.4% | ||||||||
Delayed Draw Term Loan – $3,500 Commitment (10.81% (LIBOR + 8.00% with 2.00% LIBOR floor), due 8/6/2019)(11)(15) | 8/6/2018 | — | — | — | —% | ||||||||
11,850 | 11,850 | 0.4% | |||||||||||
Harbortouch Payments, LLC | Commercial Services & Supplies | Escrow Receivable | 3/31/2014 | — | 951 | —% | |||||||
— | 951 | —% | |||||||||||
HarbourView CLO VII-R, Ltd. (f/k/a HarbourView CLO VII, Ltd.) | Structured Finance | Subordinated Notes (Residual Interest, current yield 21.84%, due 7/18/2031)(5)(6)(14) | 6/10/2015 | 19,025 | 13,331 | 12,661 | 0.4% | ||||||
13,331 | 12,661 | 0.4% | |||||||||||
Help/Systems Holdings, Inc. | Software | Second Lien Term Loan (10.27% (LIBOR + 7.75%), due 3/27/2026)(3)(8)(13) | 4/17/2018 | 11,293 | 11,248 | 11,112 | 0.3% | ||||||
11,248 | 11,112 | 0.3% | |||||||||||
Ingenio, LLC | Interactive Media & Services | Senior Secured Term Loan (10.25% (LIBOR + 7.50% with 1.25% LIBOR floor), due 9/26/2022)(3)(8)(11) | 9/25/2017 | 9,647 | 9,647 | 9,647 | 0.3% | ||||||
9,647 | 9,647 | 0.3% | |||||||||||
Inpatient Care Management Company, LLC | Health Care Providers & Services | Senior Secured Term Loan (10.81% (LIBOR + 8.00% with 1.00% LIBOR floor), due 6/8/2021)(3)(11) | 6/8/2016 | 20,443 | 20,443 | 20,252 | 0.6% | ||||||
20,443 | 20,252 | 0.6% | |||||||||||
Janus International Group, LLC | Building Products | Second Lien Term Loan (10.27% (LIBOR + 7.75% with 1.00% LIBOR floor), due 2/12/2026)(3)(8)(13) | 2/22/2018 | 20,000 | 19,830 | 19,249 | 0.6% | ||||||
19,830 | 19,249 | 0.6% | |||||||||||
JD Power and Associates | Capital Markets | Second Lien Term Loan (11.02% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/7/2024)(3)(8)(13) | 9/16/2016 | 21,673 | 21,534 | 21,673 | 0.7% | ||||||
21,534 | 21,673 | 0.7% | |||||||||||
Jefferson Mill CLO Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 13.26%, due 10/20/2031)(5)(6)(14) | 7/28/2015 | 23,594 | 18,303 | 12,743 | 0.4% | ||||||
18,303 | 12,743 | 0.4% | |||||||||||
K&N Parent, Inc. | Auto Components | Second Lien Term Loan (11.27% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/21/2024)(3)(8)(13) | 10/20/2016 | 25,887 | 25,409 | 25,409 | 0.8% | ||||||
25,409 | 25,409 | 0.8% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Keystone Acquisition Corp.(36) | Health Care Providers & Services | Second Lien Term Loan (12.05% (LIBOR + 9.25% with 1.00% LIBOR floor), due 5/1/2025)(3)(8)(11) | 5/18/2017 | $ | 50,000 | $ | 50,000 | $ | 50,000 | 1.5% | |||
50,000 | 50,000 | 1.5% | |||||||||||
LCM XIV Ltd. | Structured Finance | Income Notes (Residual Interest, current yield 15.73%, due 7/21/2031)(5)(14) | 7/11/2013 | 49,934 | 26,947 | 22,272 | 0.7% | ||||||
26,947 | 22,272 | 0.7% | |||||||||||
Madison Park Funding IX, Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 8/15/2022)(5)(14)(17) | 7/18/2012 | 43,110 | 1,974 | 1,388 | —% | ||||||
1,974 | 1,388 | —% | |||||||||||
Maverick Healthcare Equity, LLC | Health Care Providers & Services | Preferred Units (10.00%, 1,250,000 units)(16) | 10/31/2007 | 1,252 | 868 | —% | |||||||
Class A Common Units (1,250,000 units)(16) | 10/31/2007 | — | — | —% | |||||||||
1,252 | 868 | —% | |||||||||||
MedMark Services, Inc.(51) | Health Care Providers & Services | Second Lien Term Loan (10.60% (LIBOR + 8.25% with 1.00% LIBOR floor), due 3/1/2025)(3)(8)(13) | 3/16/2018 | 7,000 | 6,938 | 6,938 | 0.2% | ||||||
6,938 | 6,938 | 0.2% | |||||||||||
Memorial MRI & Diagnostic, LLC | Health Care Providers & Services | Senior Secured Term Loan (11.31% (LIBOR + 8.50% with 1.00% LIBOR floor), due 3/16/2022)(3)(11) | 3/16/2017 | 36,545 | 36,545 | 36,545 | 1.1% | ||||||
36,545 | 36,545 | 1.1% | |||||||||||
Mobile Posse, Inc. | Media | First Lien Term Loan (11.31% (LIBOR + 8.50% with 2.00% LIBOR floor), due 4/3/2023)(3)(11) | 4/3/2018 | 27,100 | 27,100 | 27,100 | 0.8% | ||||||
27,100 | 27,100 | 0.8% | |||||||||||
Mountain View CLO 2013-I Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 12.42%, due 10/15/2030)(5)(14) | 5/1/2013 | 43,650 | 28,932 | 21,617 | 0.7% | ||||||
28,932 | 21,617 | 0.7% | |||||||||||
Mountain View CLO IX Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 18.59%, due 7/15/2031)(5)(6)(14) | 6/25/2015 | 47,830 | 31,532 | 33,219 | 1.0% | ||||||
31,532 | 33,219 | 1.0% | |||||||||||
MRP Holdco, Inc. | Professional Services | Senior Secured Term Loan A (7.53% (LIBOR + 5.00% with 1.50% LIBOR floor), due 4/17/2024)(3)(13) | 4/17/2018 | 54,511 | 54,511 | 54,511 | 1.6% | ||||||
Senior Secured Term Loan B (11.53% (LIBOR + 9.00% with 1.50% LIBOR floor), due 4/17/2024)(13) | 4/17/2018 | 55,000 | 55,000 | 55,000 | 1.7% | ||||||||
109,511 | 109,511 | 3.3% | |||||||||||
Octagon Investment Partners XV, Ltd. | Structured Finance | Income Notes (Residual Interest, current yield 13.40%, due 7/19/2030)(5)(14) | 2/20/2013 | 42,064 | 32,493 | 25,890 | 0.8% | ||||||
32,493 | 25,890 | 0.8% | |||||||||||
Octagon Investment Partners 18-R Ltd. (f/k/a Octagon Investment Partners XVIII, Ltd.) | Structured Finance | Subordinated Notes (Residual Interest, current yield 18.50%, due 4/16/2031)(5)(6)(14) | 8/17/2015 | 46,016 | 27,497 | 25,411 | 0.8% | ||||||
27,497 | 25,411 | 0.8% | |||||||||||
Pearl Intermediate Parent LLC | Health Care Providers & Services | Second Lien Term Loan (8.75% (LIBOR + 6.25%), due 2/15/2026)(3)(8)(13) | 2/28/2018 | 5,000 | 4,978 | 4,806 | 0.1% | ||||||
4,978 | 4,806 | 0.1% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
PeopleConnect Intermediate, LLC (f/k/a Intelius, Inc.) | Interactive Media & Services | Revolving Line of Credit – $1,000 Commitment (12.30% (LIBOR + 9.50% with 1.00% LIBOR floor), due 7/1/2020)(11)(15) | 7/1/2015 | $ | 500 | $ | 500 | $ | 500 | —% | |||
Senior Secured Term Loan A (9.30% (LIBOR + 6.50% with 1.00% LIBOR floor), due 7/1/2020)(3)(11) | 7/1/2015 | 18,369 | 18,369 | 18,369 | 0.6% | ||||||||
Senior Secured Term Loan B (15.30% (LIBOR + 12.50% with 1.00% LIBOR floor), due 7/1/2020)(3)(11) | 7/1/2015 | 19,933 | 19,933 | 19,933 | 0.6% | ||||||||
38,802 | 38,802 | 1.2% | |||||||||||
PGX Holdings, Inc. | Diversified Consumer Services | Second Lien Term Loan (11.53% (LIBOR + 9.00% with 1.00% LIBOR floor), due 9/29/2021)(3)(13) | 9/29/2014 | 109,190 | 109,190 | 109,190 | 3.3% | ||||||
109,190 | 109,190 | 3.3% | |||||||||||
PharMerica Corporation | Pharmaceuticals | Second Lien Term Loan (10.21% (LIBOR + 7.75% with 1.00% LIBOR floor), due 12/7/2025)(3)(8)(13) | 12/7/2017 | 12,000 | 11,883 | 12,000 | 0.4% | ||||||
11,883 | 12,000 | 0.4% | |||||||||||
Photonis Technologies SAS | Electronic Equipment, Instruments & Components | First Lien Term Loan (10.31% (LIBOR + 7.50% with 1.00% LIBOR floor), due 9/18/2019)(8)(11)(14) | 9/10/2013 | 12,872 | 12,654 | 12,654 | 0.4% | ||||||
12,654 | 12,654 | 0.4% | |||||||||||
PlayPower, Inc. | Leisure Products | Second Lien Term Loan (11.55% (LIBOR + 8.75% with 1.00% LIBOR floor), due 6/23/2022)(3)(8)(11) | 6/23/2015 | 11,000 | 10,916 | 11,000 | 0.3% | ||||||
10,916 | 11,000 | 0.3% | |||||||||||
Research Now Group, Inc. & Survey Sampling International LLC | Professional Services | First Lien Term Loan (8.02% (LIBOR + 5.50% with 1.00% LIBOR floor), due 12/20/2024)(3)(8)(13) | 1/5/2018 | 9,900 | 9,454 | 9,454 | 0.3% | ||||||
Second Lien Term Loan (12.02% (LIBOR + 9.50% with 1.00% LIBOR floor), due 12/20/2025)(3)(8)(13) | 1/5/2018 | 50,000 | 46,958 | 46,957 | 1.4% | ||||||||
56,412 | 56,411 | 1.7% | |||||||||||
RGIS Services, LLC | Commercial Services & Supplies | Senior Secured Term Loan (10.02% (LIBOR + 7.50% with 1.00% LIBOR floor), due 3/31/2023)(3)(8)(13) | 4/20/2017 | 15,173 | 15,113 | 13,724 | 0.4% | ||||||
15,113 | 13,724 | 0.4% | |||||||||||
RME Group Holding Company | Media | Senior Secured Term Loan A (8.81% (LIBOR + 6.00% with 1.00% LIBOR floor), due 5/4/2022)(3)(11) | 5/4/2017 | 31,571 | 31,571 | 31,571 | 1.0% | ||||||
Senior Secured Term Loan B (13.81% (LIBOR + 11.00% with 1.00% LIBOR floor), due 5/4/2022)(3)(11) | 5/4/2017 | 23,424 | 23,424 | 23,424 | 0.7% | ||||||||
54,995 | 54,995 | 1.7% | |||||||||||
Rocket Software, Inc. | Software | Second Lien Term Loan (10.77% (LIBOR + 8.25%), due 11/27/2026)(8)(13) | 12/7/2018 | 50,000 | 49,505 | 49,505 | 1.5% | ||||||
49,505 | 49,505 | 1.5% | |||||||||||
Romark WM-R Ltd. (f/k/a Washington Mill CLO Ltd.) | Structured Finance | Subordinated Notes (Residual Interest, current yield 13.17%, due 4/20/2031)(5)(6)(14) | 5/15/2014 | 27,725 | 22,283 | 15,923 | 0.5% | ||||||
22,283 | 15,923 | 0.5% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Rosa Mexicano | Hotels, Restaurants & Leisure | Revolving Line of Credit – $2,500 Commitment (10.31% (LIBOR + 7.50% with 1.50% LIBOR floor), due 3/29/2023(11)(15) | 3/29/2018 | $ | — | $ | — | $ | — | —% | |||
Senior Secured Term Loan (10.31% (LIBOR + 7.50% with 1.50% LIBOR floor), due 3/29/2023(3)(11) | 3/29/2018 | 29,438 | 29,438 | 29,438 | 0.9% | ||||||||
29,438 | 29,438 | 0.9% | |||||||||||
SCS Merger Sub, Inc. | IT Services | Second Lien Term Loan (12.02% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/30/2023)(3)(8)(13) | 11/6/2015 | 20,000 | 19,642 | 20,000 | 0.6% | ||||||
19,642 | 20,000 | 0.6% | |||||||||||
Securus Technologies Holdings, Inc. | Communications Equipment | Second Lien Term Loan (10.77% (LIBOR + 8.25% with 1.00% LIBOR floor), due 11/01/2025)(3)(8)(13) | 11/3/2017 | 48,000 | 47,877 | 47,171 | 1.4% | ||||||
47,877 | 47,171 | 1.4% | |||||||||||
SEOTownCenter, Inc. | IT Services | Senior Secured Term Loan A (10.31% (LIBOR + 7.50% with 2.00% LIBOR floor), due 4/07/2023)(3)(11) | 4/10/2018 | 27,000 | 27,000 | 27,000 | 0.8% | ||||||
Senior Secured Term Loan B (15.31% (LIBOR + 12.50% with 2.00% LIBOR floor), due 4/07/2023)(3)(11) | 4/10/2018 | 19,000 | 19,000 | 19,000 | 0.6% | ||||||||
46,000 | 46,000 | 1.4% | |||||||||||
SESAC Holdco II LLC | Entertainment | Second Lien Term Loan (9.76% (LIBOR + 7.25% with 1.00% LIBOR floor), due 2/23/2025)(8)(13) | 3/2/2017 | 3,000 | 2,977 | 2,909 | 0.1% | ||||||
2,977 | 2,909 | 0.1% | |||||||||||
SMG US Midco | Hotels, Restaurants & Leisure | Second Lien Term Loan (9.52% (LIBOR + 7.00%), due 1/23/2026)(3)(8)(13) | 1/23/2018 | 7,500 | 7,483 | 7,419 | 0.2% | ||||||
7,483 | 7,419 | 0.2% | |||||||||||
Spartan Energy Services, Inc. | Energy Equipment & Services | Senior Secured Term Loan A (10.52% (LIBOR + 8.00% with 1.00% LIBOR floor), due 2/11/2019)(13) | 10/20/2014 | 13,156 | 13,156 | 13,156 | 0.4% | ||||||
Senior Secured Term Loan B (16.52% PIK (LIBOR + 14.00% with 1.00% LIBOR floor), due 2/11/2019)(13)(46) | 10/20/2014 | 19,832 | 19,832 | 19,832 | 0.6% | ||||||||
32,988 | 32,988 | 1.0% | |||||||||||
Spectrum Holdings III Corp | Health Care Equipment & Supplies | Second Lien Term Loan (9.52% (LIBOR + 7.00% with 1.00% LIBOR floor), due 1/31/2026)(3)(8)(13) | 1/31/2018 | 7,500 | 7,467 | 7,146 | 0.2% | ||||||
7,467 | 7,146 | 0.2% | |||||||||||
Strategic Materials | Household Durables | Second Lien Term Loan (10.29% (LIBOR + 7.75% with 1.00% LIBOR floor), due 11/1/2025)(3)(8)(11) | 11/1/2017 | 7,000 | 6,940 | 5,840 | 0.2% | ||||||
6,940 | 5,840 | 0.2% | |||||||||||
Stryker Energy, LLC | Energy Equipment & Services | Overriding Royalty Interests(43) | 12/4/2006 | — | — | —% | |||||||
— | — | —% | |||||||||||
Sudbury Mill CLO Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 5.83%, due 1/17/2026)(5)(14) | 12/5/2013 | 28,200 | 17,744 | 14,912 | 0.5% | ||||||
17,744 | 14,912 | 0.5% | |||||||||||
Symphony CLO XIV Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 7/14/2026)(5)(6)(14)(17) | 5/29/2014 | 49,250 | 32,724 | 22,884 | 0.7% | ||||||
32,724 | 22,884 | 0.7% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Symphony CLO XV, Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 9.35%, due 1/17/2032)(5)(14) | 11/17/2014 | $ | 63,831 | $ | 41,872 | $ | 21,489 | 0.7% | |||
41,872 | 21,489 | 0.7% | |||||||||||
Symphony CLO XV, Ltd. | Structured Finance | Class F Notes (12.55% (LIBOR + 8.68%), due 1/17/2032)(11)(14)(37) | 12/24/2018 | 12,000 | 11,401 | 12,277 | 0.4% | ||||||
11,401 | 12,277 | 0.4% | |||||||||||
TGP HOLDINGS III LLC | Household Durables | Second Lien Term Loan (11.30% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/25/2025)(8)(11) | 10/3/2017 | 3,000 | 2,962 | 2,960 | 0.1% | ||||||
2,962 | 2,960 | 0.1% | |||||||||||
TouchTunes Interactive Networks, Inc. | Entertainment | Second Lien Term Loan (10.63% (LIBOR + 8.25% with 1.00% LIBOR floor), due 5/29/2022)(3)(8)(13) | 5/29/2015 | 14,000 | 13,935 | 14,000 | 0.4% | ||||||
13,935 | 14,000 | 0.4% | |||||||||||
Town & Country Holdings, Inc. | Distributors | First Lien Term Loan (11.31% (LIBOR + 8.50% with 1.50% LIBOR floor), due 1/26/2023)(3)(11) | 1/26/2018 | 173,733 | 173,733 | 172,571 | 5.2% | ||||||
173,733 | 172,571 | 5.2% | |||||||||||
Transplace Holdings, Inc. | Transportation Infrastructure | Second Lien Term Loan (11.21% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/6/2025)(3)(8)(13) | 10/5/2017 | 28,104 | 27,536 | 27,120 | 0.8% | ||||||
27,536 | 27,120 | 0.8% | |||||||||||
Turning Point Brands, Inc.(42) | Tobacco | Second Lien Term Loan (9.46% (LIBOR + 7.00%), due 3/7/2024)(3)(8)(13) | 2/17/2017 | 14,500 | 14,405 | 14,405 | 0.4% | ||||||
14,405 | 14,405 | 0.4% | |||||||||||
Universal Fiber Systems, LLC | Textiles, Apparel & Luxury Goods | Second Lien Term Loan (12.03% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/02/2022)(3)(8)(11) | 10/2/2015 | 37,000 | 36,604 | 37,000 | 1.1% | ||||||
36,604 | 37,000 | 1.1% | |||||||||||
USG Intermediate, LLC | Leisure Products | Revolving Line of Credit – $2,000 Commitment (11.78% (LIBOR + 9.25% with 1.00% LIBOR floor), due 8/24/2019)(13)(15) | 4/15/2015 | 1,500 | 1,500 | 1,500 | —% | ||||||
Senior Secured Term Loan A (9.28% (LIBOR + 6.75% with 1.00% LIBOR floor), due 8/24/2022)(3)(13) | 4/15/2015 | 8,235 | 8,235 | 8,235 | 0.3% | ||||||||
Senior Secured Term Loan B (14.28% (LIBOR + 11.75% with 1.00% LIBOR floor), due 8/24/2022)(3)(13) | 4/15/2015 | 19,802 | 19,802 | 19,802 | 0.6% | ||||||||
Equity(16) | 4/15/2015 | 1 | — | —% | |||||||||
29,538 | 29,537 | 0.9% | |||||||||||
UTZ Quality Foods, LLC | Food Products | Second Lien Term Loan (9.77% (LIBOR + 7.25%), due 11/21/2025)(3)(8)(13) | 11/21/2017 | 10,000 | 9,892 | 9,673 | 0.3% | ||||||
9,892 | 9,673 | 0.3% | |||||||||||
VC GB Holdings, Inc. | Household Durables | Subordinated Secured Term Loan (10.52% (LIBOR + 8.00% with 1.00% LIBOR floor), due 2/28/2025)(3)(8)(13) | 2/28/2017 | 12,933 | 12,702 | 12,933 | 0.4% | ||||||
12,702 | 12,933 | 0.4% | |||||||||||
Venio LLC | Professional Services | Second Lien Term Loan (4.00% plus 10.31% PIK (LIBOR + 7.50% with 2.50% LIBOR floor), due 2/19/2020)(11)(46) | 2/19/2014 | 23,762 | 20,743 | 22,861 | 0.7% | ||||||
20,743 | 22,861 | 0.7% | |||||||||||
Voya CLO 2012-2, Ltd. | Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(5)(14)(17) | 8/28/2012 | 38,070 | 450 | 617 | —% | ||||||
450 | 617 | —% |
December 31, 2018 (Unaudited) | |||||||||||||
Portfolio Company | Industry | Investments(1)(44) | Acquisition Date(53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Voya CLO 2012-3, Ltd. | Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(5)(14)(17) | 10/18/2012 | $ | 46,632 | $ | — | $ | 617 | —% | |||
— | 617 | —% | |||||||||||
Voya CLO 2012-4, Ltd. | Structured Finance | Income Notes (Residual Interest, current yield 11.30%, due 10/16/2028)(5)(14) | 11/29/2012 | 40,613 | 31,128 | 27,359 | 0.8% | ||||||
31,128 | 27,359 | 0.8% | |||||||||||
Voya CLO 2014-1, Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 14.42%, due 4/18/2031)(5)(6)(14) | 3/13/2014 | 40,773 | 29,294 | 22,625 | 0.7% | ||||||
29,294 | 22,625 | 0.7% | |||||||||||
Voya CLO 2016-3, Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 13.29%, due 10/20/2031)(5)(6)(14) | 10/27/2016 | 28,100 | 27,320 | 22,740 | 0.7% | ||||||
27,320 | 22,740 | 0.7% | |||||||||||
Voya CLO 2017-3, Ltd. | Structured Finance | Subordinated Notes (Residual Interest, current yield 12.60%, due 7/20/2030)(5)(6)(14) | 7/12/2017 | 44,885 | 49,130 | 43,149 | 1.3% | ||||||
49,130 | 43,149 | 1.3% | |||||||||||
VT Topco, Inc. | Commercial Services & Supplies | Second Lien Term Loan (9.80% (LIBOR + 7.00%), due 8/17/2026)(3)(8)(11) | 8/23/2018 | 7,000 | 6,967 | 6,926 | 0.2% | ||||||
6,967 | 6,926 | 0.2% | |||||||||||
Wink Holdco, Inc. | Insurance | Second Lien Term Loan (9.27% (LIBOR + 6.75% with 1.00% LIBOR floor), due 12/1/2025)(3)(8)(13) | 12/1/2017 | 3,000 | 2,987 | 2,899 | 0.1% | ||||||
2,987 | 2,899 | 0.1% | |||||||||||
Total Non-Control/Non-Affiliate Investments (Level 3) | $ | 3,538,047 | $ | 3,317,943 | 100.5% | ||||||||
Total Portfolio Investments (Level 3) | $ | 6,096,396 | $ | 5,842,570 | 176.9% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Control Investments (greater than 25.00% voting control)(49) | |||||||||||||
CCPI Inc.(19) | Ohio / Electronic Equipment, Instruments & Components | Senior Secured Term Loan A (10.00%, due 12/31/2020)(3) | 12/13/2012 | $ | 2,881 | $ | 2,881 | $ | 2,881 | 0.1% | |||
Senior Secured Term Loan B (12.00% plus 7.00% PIK, due 12/31/2020)(3)(46) | 12/13/2012 | 17,819 | 17,819 | 17,819 | 0.5% | ||||||||
Common Stock (14,857 shares)(16) | 12/13/2012 | 6,759 | 15,056 | 0.4% | |||||||||
27,459 | 35,756 | 1.0% | |||||||||||
CP Energy Services Inc.(20) | Oklahoma / Energy Equipment & Services | Senior Secured Term Loan (13.31% (LIBOR + 11.00% with 1.00% LIBOR floor), due 12/29/2022)(11) | 12/29/2017 | 35,048 | 35,048 | 35,048 | 1.0% | ||||||
Series B Convertible Preferred Stock (16.00%, 790 shares)(16) | 10/30/2015 | 63,225 | 63,225 | 1.9% | |||||||||
Common Stock (102,924 shares)(16) | 8/2/2013 | 81,203 | 24,988 | 0.7% | |||||||||
179,476 | 123,261 | 3.6% | |||||||||||
Credit Central Loan Company, LLC(21) | South Carolina / Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2024)(14)(46) | 6/24/2014 | 51,855 | 47,496 | 51,855 | 1.5% | ||||||
Class A Units (10,640,642 units)(14)(16) | 6/24/2014 | 13,731 | 23,196 | 0.7% | |||||||||
Net Revenues Interest (25% of Net Revenues)(14)(16) | 1/28/2015 | — | 1,626 | 0.1% | |||||||||
61,227 | 76,677 | 2.3% | |||||||||||
Echelon Transportation, LLC (f/k/a Echelon Aviation, LLC) | New York / Aerospace & Defense | Senior Secured Term Loan (11.75% (LIBOR + 9.75% with 2.00% LIBOR floor) plus 2.25% PIK, due 3/31/2022)(13)(46) | 3/31/2014 | 31,055 | 31,055 | 31,055 | 0.9% | ||||||
Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.00% PIK, due 12/7/2024)(13)(46) | 12/9/2016 | 16,044 | 16,044 | 16,044 | 0.5% | ||||||||
Membership Interest (100%)(16) | 3/31/2014 | 22,738 | 35,179 | 1.0% | |||||||||
69,837 | 82,278 | 2.4% | |||||||||||
First Tower Finance Company LLC(23) | Mississippi / Consumer Finance | Subordinated Term Loan to First Tower, LLC (10.00% plus 10.00% PIK, due 6/24/2019)(14)(46) | 6/24/2014 | 273,066 | 273,066 | 273,066 | 8.0% | ||||||
Class A Units (95,709,910 units)(14)(16) | 6/24/2014 | 81,146 | 169,944 | 5.0% | |||||||||
354,212 | 443,010 | 13.0% | |||||||||||
Freedom Marine Solutions, LLC(24) | Louisiana / Energy Equipment & Services | Membership Interest (100%)(16) | 10/1/2009 | 43,592 | 13,037 | 0.4% | |||||||
43,592 | 13,037 | 0.4% | |||||||||||
InterDent, Inc. (52) | California / Health Care Providers & Services | Senior Secured Term Loan A (7.59% (LIBOR + 5.50% with 0.75% LIBOR floor), due 12/31/2017, past due)(13) | 8/3/2012 | 77,994 | 77,994 | 77,994 | 2.3% | ||||||
Senior Secured Term Loan B (8.34% (LIBOR + 6.25% with 0.75% LIBOR floor) plus 4.25% PIK, due 12/31/2017, past due)(13) | 8/3/2012 | 131,558 | 131,558 | 119,627 | 3.5% | ||||||||
Senior Secured Term Loan C (18.00% PIK, due on demand)(46) | 3/22/2018 | 3,149 | 3,149 | — | —% | ||||||||
Warrants (to purchase 4,900 shares of Common Stock, expires 3/22/2030)(16) | 2/23/2018 | — | — | —% | |||||||||
212,701 | 197,621 | 5.8% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Control Investments (greater than 25.00% voting control)(49) | |||||||||||||
MITY, Inc.(25) | Utah / Commercial Services & Supplies | Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 1/30/2020)(3)(11) | 9/19/2013 | $ | 26,250 | $ | 26,250 | $ | 26,250 | 0.8% | |||
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 1/30/2020)(3)(11)(46) | 6/23/2014 | 24,442 | 24,442 | 24,442 | 0.7% | ||||||||
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due on demand)(14) | 9/19/2013 | 5,563 | 7,200 | 5,563 | 0.1% | ||||||||
Common Stock (42,053 shares)(16) | 9/19/2013 | 6,849 | 2,639 | 0.1% | |||||||||
64,741 | 58,894 | 1.7% | |||||||||||
National Property REIT Corp.(26) | Various / Equity Real Estate Investment Trusts (REITs) / Online Lending | Senior Secured Term Loan A (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 10.50% PIK, due 4/1/2019)(13)(46) | 4/1/2014 | 293,203 | 293,203 | 293,203 | 8.6% | ||||||
Senior Secured Term Loan E (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.50% PIK, due 4/1/2019)(13)(46) | 4/1/2014 | 226,180 | 226,180 | 226,180 | 6.7% | ||||||||
Common Stock (3,042,393 shares) | 12/31/2013 | 307,604 | 436,105 | 12.8% | |||||||||
Net Operating Income Interest (5% of Net Operating Income) | 12/31/2013 | — | 99,488 | 2.9% | |||||||||
826,987 | 1,054,976 | 31.0% | |||||||||||
Nationwide Loan Company LLC(27) | Illinois / Consumer Finance | Senior Subordinated Term Loan to Nationwide Acceptance LLC (10.00% plus 10.00% PIK, due 6/18/2019)(14)(46) | 6/18/2014 | 17,410 | 17,410 | 17,410 | 0.5% | ||||||
Class A Units (32,456,159 units)(14)(16) | 1/31/2013 | 21,962 | 16,443 | 0.5% | |||||||||
39,372 | 33,853 | 1.0% | |||||||||||
NMMB, Inc.(28) | New York / Media | Senior Secured Note (14.00%, due 5/6/2021)(3) | 5/6/2011 | 3,714 | 3,714 | 3,714 | 0.1% | ||||||
Senior Secured Note to Armed Forces Communications, Inc. (14.00%, due 5/6/2021)(3) | 6/12/2014 | 4,900 | 4,900 | 4,900 | 0.2% | ||||||||
Series A Preferred Stock (7,200 shares)(16) | 12/12/2013 | 7,200 | 5,663 | 0.2% | |||||||||
Series B Preferred Stock (5,669 shares)(16) | 12/12/2013 | 5,669 | 4,458 | 0.1% | |||||||||
21,483 | 18,735 | 0.6% | |||||||||||
Pacific World Corporation(40) | California / Personal Products | Revolving Line of Credit – $26,000 Commitment (9.34% (LIBOR + 7.25% with 1.00% LIBOR floor), due 9/26/2020)(13)(15) | 9/26/2014 | 20,825 | 20,825 | 20,825 | 0.6% | ||||||
Senior Secured Term Loan A (7.34% (LIBOR + 5.25% with 1.00% LIBOR floor), due 9/26/2020)(13) | 12/31/2014 | 96,250 | 96,250 | 96,250 | 2.8% | ||||||||
Senior Secured Term Loan B (11.34% PIK (LIBOR + 9.25% with 1.00% LIBOR floor), in non-accrual status effective 5/21/2018, due 9/26/2020)(13) | 12/31/2014 | 96,500 | 96,500 | 47,945 | 1.4% | ||||||||
Convertible Preferred Equity (100,000 shares)(16) | 6/15/2018 | 15,000 | — | —% | |||||||||
Common Stock (6,778,414 shares)(16) | 9/29/2017 | — | — | —% | |||||||||
228,575 | 165,020 | 4.8% | |||||||||||
R-V Industries, Inc. | Pennsylvania / Machinery | Senior Subordinated Note (11.34% (LIBOR + 9.00% with 1.00% LIBOR floor), due 3/31/2022)(11) | 6/12/2013 | 28,622 | 28,622 | 28,622 | 0.8% | ||||||
Common Stock (745,107 shares)(16) | 6/26/2007 | 6,866 | 3,264 | 0.1% | |||||||||
35,488 | 31,886 | 0.9% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Control Investments (greater than 25.00% voting control)(49) | |||||||||||||
SB Forging Company II, Inc. (f/k/a Gulf Coast Machine & Supply Company)(29) | Texas / Energy Equipment & Services | Series A Convertible Preferred Stock (6.50%, 99,000 shares)(16) | 11/8/2013 | $ | — | $ | 2,194 | 0.1% | |||||
Common Stock (100 shares)(16) | 11/8/2013 | — | — | —% | |||||||||
— | 2,194 | 0.1% | |||||||||||
USES Corp.(30) | Texas / Commercial Services & Supplies | Senior Secured Term Loan A (9.00% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | 3/31/2014 | $ | 36,964 | 31,601 | 16,319 | 0.5% | |||||
Senior Secured Term Loan B (15.50% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | 3/31/2014 | 47,866 | 35,568 | — | —% | ||||||||
Common Stock (268,962 shares)(16) | 6/15/2016 | — | — | —% | |||||||||
67,169 | 16,319 | 0.5% | |||||||||||
Valley Electric Company, Inc.(31) | Washington / Construction & Engineering | Senior Secured Note to Valley Electric Co. of Mt. Vernon, Inc. (8.00% (LIBOR + 5.00% with 3.00% LIBOR floor) plus 2.50% PIK, due 12/31/2024)(3)(11)(46) | 12/31/2012 | 10,430 | 10,430 | 10,430 | 0.3% | ||||||
Senior Secured Note (8.00% plus 10.00% PIK, due 6/23/2024)(46) | 6/24/2014 | 27,781 | 27,781 | 27,781 | 0.8% | ||||||||
Consolidated Revenue Interest (2.0%) | 6/22/2018 | — | — | —% | |||||||||
Common Stock (50,000 shares)(16) | 12/31/2012 | 26,204 | 12,586 | 0.4% | |||||||||
64,415 | 50,797 | 1.5% | |||||||||||
Wolf Energy, LLC(32) | Kansas / Energy Equipment & Services | Membership Interest (100%)(16) | 7/1/2014 | — | — | —% | |||||||
Membership Interest in Wolf Energy Services Company, LLC (100%)(16) | 3/14/2017 | 3,792 | — | —% | |||||||||
Net Profits Interest (8% of Equity Distributions)(4)(16) | 4/15/2013 | — | 12 | —% | |||||||||
3,792 | 12 | —% | |||||||||||
Total Control Investments (Level 3) | $ | 2,300,526 | $ | 2,404,326 | 70.6% |
Affiliate Investments (5.00% to 24.99% voting control)(50) | |||||||||||||
Edmentum Ultimate Holdings, LLC(22) | Minnesota / Diversified Consumer Services | Second Lien Revolving Credit Facility to Edmentum, Inc. – $7,834 Commitment (5.00%, due 12/9/2021)(15) | 6/9/2015 | $ | 7,834 | $ | 7,834 | $ | 7,834 | 0.2% | |||
Unsecured Senior PIK Note (8.50% PIK, due 12/9/2021)(46) | 6/9/2015 | 7,520 | 7,520 | 7,520 | 0.2% | ||||||||
Unsecured Junior PIK Note (10.00% PIK, in non-accrual status effective 1/1/2017, due 12/9/2021) | 6/9/2015 | 35,226 | 23,828 | 19,862 | 0.6% | ||||||||
Class A Units (370,964 units)(16) | 6/9/2015 | 6,577 | — | —% | |||||||||
45,759 | 35,216 | 1.0% | |||||||||||
Nixon, Inc.(39) | California / Textiles, Apparel & Luxury Goods | Common Stock (857 units)(16) | 5/12/2017 | — | — | —% | |||||||
— | — | —% | |||||||||||
Targus International, LLC(33) | California / Textiles, Apparel & Luxury Goods | Common Stock (7,383,395 shares)(16) | 5/24/2011 | 9,878 | 23,220 | 0.7% | |||||||
9,878 | 23,220 | 0.7% | |||||||||||
Total Affiliate Investments (Level 3) | $ | 55,637 | $ | 58,436 | 1.7% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
ACE Cash Express, Inc. | Texas / Consumer Finance | Senior Secured Note (12.00%, due 12/15/2022)(8)(14) | 12/15/2017 | $ | 20,000 | $ | 19,733 | $ | 21,594 | 0.6% | |||
19,733 | 21,594 | 0.6% | |||||||||||
AgaMatrix, Inc. | New Hampshire / Healthcare Equipment and Supplies | Senior Secured Term Loan (11.33% (LIBOR + 9.00% with 1.25% LIBOR floor), due 9/29/2022)(3)(11) | 9/29/2017 | 35,815 | 35,815 | 35,815 | 1.1% | ||||||
35,815 | 35,815 | 1.1% | |||||||||||
American Gilsonite Company(34) | Utah / Chemicals | Membership Interest (0.05%, 131 shares)(16) | 3/14/2008 | — | — | —% | |||||||
— | — | —% | |||||||||||
Apidos CLO IX | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 7/15/2023)(5)(14)(17) | 7/11/2012 | 23,525 | 21 | 76 | —% | ||||||
21 | 76 | —% | |||||||||||
Apidos CLO XI | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 7.80%, due 1/17/2028)(5)(14) | 1/17/2013 | 40,500 | 32,397 | 25,000 | 0.7% | ||||||
32,397 | 25,000 | 0.7% | |||||||||||
Apidos CLO XII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.35%, due 4/15/2031)(5)(14) | 4/18/2013 | 52,203 | 35,014 | 26,518 | 0.8% | ||||||
35,014 | 26,518 | 0.8% | |||||||||||
Apidos CLO XV | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.14%, due 4/20/2031)(5)(14) | 10/16/2013 | 48,515 | 35,776 | 26,960 | 0.8% | ||||||
35,776 | 26,960 | 0.8% | |||||||||||
Apidos CLO XXII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.65%, due 10/20/2027)(5)(6)(14) | 10/14/2015 | 31,350 | 27,496 | 25,047 | 0.7% | ||||||
27,496 | 25,047 | 0.7% | |||||||||||
Ark-La-Tex Wireline Services, LLC | Louisiana / Energy Equipment & Services | Senior Secured Term Loan B (13.59% (LIBOR + 11.50% with 1.00% LIBOR floor), in non-accrual status effective 4/1/2016, due 4/8/2019)(13) | 4/8/2014 | 25,595 | 1,145 | 787 | —% | ||||||
1,145 | 787 | —% | |||||||||||
Armor Holding II LLC | New York / Commercial Services & Supplies | Second Lien Term Loan (11.10% (LIBOR + 9.00% with 1.25% LIBOR floor), due 12/26/2020)(3)(8)(13) | 6/26/2018 | 7,000 | 6,949 | 7,000 | 0.2% | ||||||
6,949 | 7,000 | 0.2% | |||||||||||
Atlantis Health Care Group (Puerto Rico), Inc. | Puerto Rico / Health Care Providers & Services | Revolving Line of Credit – $7,000 Commitment (10.81% (LIBOR + 8.50% with 1.50% LIBOR floor), due 8/21/2019)(11)(15) | 2/21/2013 | 7,000 | 7,000 | 6,900 | 0.2% | ||||||
Senior Term Loan (10.81% (LIBOR + 8.50% with 1.50% LIBOR floor), due 2/21/2020)(3)(11) | 2/21/2013 | 77,713 | 77,713 | 76,607 | 2.2% | ||||||||
84,713 | 83,507 | 2.4% | |||||||||||
ATS Consolidated, Inc. | Arizona / Electronic Equipment, Instruments & Components | Second Lien Term Loan (9.84% (LIBOR + 7.75%, due 2/27/2026)(8)(13) | 3/19/2018 | 15,000 | 14,856 | 14,873 | 0.4% | ||||||
14,856 | 14,873 | 0.4% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Autodata, Inc. / Autodata Solutions, Inc.(9) | Canada / Software | Second Lien Term Loan (9.34% (LIBOR + 7.25% with 1.00% LIBOR floor), due 12/12/2025)(8)(13) | 12/14/2017 | $ | 6,000 | $ | 5,972 | $ | 5,972 | 0.2% | |||
5,972 | 5,972 | 0.2% | |||||||||||
Barings CLO 2018-III (f/k/a Babson CLO Ltd. 2014-III) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 11.35%, due 7/20/2029)(5)(6)(14) | 6/14/2018 | 83,098 | 49,688 | 46,933 | 1.4% | ||||||
49,688 | 46,933 | 1.4% | |||||||||||
Broder Bros., Co. | Pennsylvania / Textiles, Apparel & Luxury Goods | Senior Secured Note (10.33% (LIBOR + 8.00% with 1.25% LIBOR floor), due 12/02/2022)(3)(11) | 12/4/2017 | 274,009 | 274,009 | 274,009 | 8.0% | ||||||
274,009 | 274,009 | 8.0% | |||||||||||
Brookside Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 8.73%, due 1/18/2028)(5)(14) | 5/23/2013 | 36,300 | 19,287 | 13,466 | 0.4% | ||||||
19,287 | 13,466 | 0.4% | |||||||||||
California Street CLO IX Ltd. (f/k/a Symphony CLO IX Ltd.) | Cayman Islands / Structured Finance | Preference Shares (Residual Interest, current yield 12.20%, due 10/16/2028)(5)(14) | 5/8/2012 | 58,915 | 41,645 | 35,852 | 1.1% | ||||||
41,645 | 35,852 | 1.1% | |||||||||||
Candle-Lite Company, LLC | Ohio / Household & Personal Products | Senior Secured Term Loan A (7.81% (LIBOR + 5.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11) | 1/23/2018 | 12,438 | 12,438 | 12,438 | 0.3% | ||||||
Senior Secured Term Loan B (11.81% (LIBOR + 9.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11) | 1/23/2018 | 12,500 | 12,500 | 12,500 | 0.4% | ||||||||
24,938 | 24,938 | 0.7% | |||||||||||
Capstone Logistics Acquisition, Inc. | Georgia / Commercial Services & Supplies | Second Lien Term Loan (10.34% (LIBOR + 8.25% with 1.00% LIBOR floor), due 10/7/2022)(3)(8)(13) | 10/7/2014 | 101,030 | 100,669 | 100,136 | 2.9% | ||||||
100,669 | 100,136 | 2.9% | |||||||||||
Carlyle Global Market Strategies CLO 2014-4-R, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 20.73%, due 7/15/2030)(5)(6)(14) | 6/29/2018 | 25,534 | 17,832 | 18,807 | 0.6% | ||||||
17,832 | 18,807 | 0.6% | |||||||||||
Carlyle Global Market Strategies CLO 2016-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 18.00%, due 10/20/2029)(5)(6)(14) | 9/13/2016 | 32,200 | 32,364 | 29,080 | 0.9% | ||||||
32,364 | 29,080 | 0.9% | |||||||||||
Carlyle C17 CLO Limited (f/k/a Cent CLO 17 Limited) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 18.34%, due 4/30/2031)(5)(14) | 5/10/2018 | 24,870 | 15,140 | 15,196 | 0.4% | ||||||
15,140 | 15,196 | 0.4% | |||||||||||
Cent CLO 20 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.40%, due 1/25/2026)(5)(14) | 1/15/2014 | 40,275 | 31,692 | 28,269 | 0.8% | ||||||
31,692 | 28,269 | 0.8% | |||||||||||
Cent CLO 21 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.56%, due 7/27/2026)(5)(6)(14) | 6/18/2014 | 48,528 | 36,311 | 33,703 | 1.0% | ||||||
36,311 | 33,703 | 1.0% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Centerfield Media Holding Company(35) | California / Internet Software & Services | Senior Secured Term Loan A (9.31% (LIBOR + 7.00% with 2.00% LIBOR floor), due 1/17/2022)(3)(11) | 1/17/2017 | $ | 66,300 | $ | 66,300 | $ | 66,300 | 1.9% | |||
Senior Secured Term Loan B (14.81% (LIBOR + 12.50% with 2.00% LIBOR floor), due 1/17/2022)(11) | 1/17/2017 | 68,000 | 68,000 | 68,000 | 2.0% | ||||||||
134,300 | 134,300 | 3.9% | |||||||||||
CIFC Funding 2013-III-R, Ltd. (f/k/a CIFC Funding 2013-III, Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.43%, due 4/24/2031)(5)(14) | 4/5/2018 | 44,100 | 27,624 | 25,250 | 0.7% | ||||||
27,624 | 25,250 | 0.7% | |||||||||||
CIFC Funding 2013-IV, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.31%, due 4/28/2031)(5)(14) | 11/14/2013 | 45,500 | 31,503 | 27,697 | 0.8% | ||||||
31,503 | 27,697 | 0.8% | |||||||||||
CIFC Funding 2014-IV Investor, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 8.46%, due 10/19/2026)(5)(6)(14) | 9/3/2014 | 41,500 | 28,512 | 23,715 | 0.7% | ||||||
28,512 | 23,715 | 0.7% | |||||||||||
CIFC Funding 2016-I, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 13.11%, due 10/21/2028)(5)(6)(14) | 12/21/2016 | 34,000 | 31,179 | 27,998 | 0.8% | ||||||
31,179 | 27,998 | 0.8% | |||||||||||
Cinedigm DC Holdings, LLC | New York / Media | Senior Secured Term Loan (11.31% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021)(11)(46) | 2/28/2013 | 31,460 | 31,410 | 31,460 | 0.9% | ||||||
31,410 | 31,460 | 0.9% | |||||||||||
Class Appraisal, LLC | Michigan / Real Estate Management & Development | Revolving Line of Credit – $1,500 Commitment (10.58% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/12/2020)(11)(15) | 3/12/2018 | — | — | — | — | ||||||
Senior Secured Term Loan (10.58% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/10/2023)(3)(11) | 3/12/2018 | 41,860 | 41,860 | 41,860 | — | ||||||||
41,860 | 41,860 | 1.2% | |||||||||||
Coverall North America, Inc. | Florida / Commercial Services & Supplies | Senior Secured Term Loan A (8.31% (LIBOR + 6.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11) | 11/2/2015 | 19,100 | 19,100 | 19,100 | — | ||||||
Senior Secured Term Loan B (13.31% (LIBOR + 11.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11) | 11/2/2015 | 24,750 | 24,750 | 24,750 | — | ||||||||
43,850 | 43,850 | 1.3% | |||||||||||
CP VI Bella Midco | Pennsylvania / IT Services | Second Lien Term Loan (8.84% (LIBOR + 6.75%, due 12/29/2025)(8)(13) | 12/28/2017 | 2,000 | 1,990 | 1,990 | — | ||||||
1,990 | 1,990 | 0.1% | |||||||||||
CURO Financial Technologies Corp. | Canada / Consumer Finance | Senior Secured Notes (12.00%, due 3/1/2022)(8)(14) | 2/1/2017 | 10,896 | 10,837 | 11,844 | 0.3% | ||||||
10,837 | 11,844 | 0.3% | |||||||||||
Digital Room, LLC | California / Commercial Services & Supplies | First Lien Term Loan (7.10% (LIBOR + 5.00% with 1.00% LIBOR floor), due 12/29/2023)(3)(8)(13) | 2/9/2018 | 9,950 | 9,857 | 9,925 | 0.3% | ||||||
Second Lien Term Loan (10.85% (LIBOR + 8.75% with 1.00% LIBOR floor), due 12/29/2024)(3)(8)(13) | 2/8/2018 | 57,100 | 56,295 | 57,100 | 1.7% | ||||||||
66,152 | 67,025 | 2.0% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Dunn Paper, Inc. | Georgia / Paper & Forest Products | Second Lien Term Loan (10.84% (LIBOR + 8.75% with 1.00% LIBOR floor), due 8/26/2023)(3)(8)(13) | 10/7/2016 | $ | 11,500 | $ | 11,328 | $ | 11,226 | 0.3% | |||
11,328 | 11,226 | 0.3% | |||||||||||
Easy Gardener Products, Inc. | Texas / Household Durables | Senior Secured Term Loan (12.31% (LIBOR + 10.00% with 0.25% LIBOR floor), due 09/30/2020)(11) | 10/2/2015 | 16,894 | 16,894 | 15,728 | 0.5% | ||||||
16,894 | 15,728 | 0.5% | |||||||||||
Engine Group, Inc.(7) | California / Media | Senior Secured Term Loan (7.08% (LIBOR + 4.75% with 1.00% LIBOR floor), due 9/15/2022)(8)(11) | 9/25/2017 | 4,813 | 4,813 | 4,813 | 0.1% | ||||||
Second Lien Term Loan (11.08% (LIBOR + 8.75% with 1.00% LIBOR floor), due 9/15/2023)(3)(8)(11) | 9/25/2017 | 35,000 | 35,000 | 35,000 | 1.0% | ||||||||
39,813 | 39,813 | 1.1% | |||||||||||
EXC Holdings III Corp | Massachusetts / Technology Hardware, Storage & Peripherals | Second Lien Term Loan (9.97% (LIBOR + 7.50% with 1.00% LIBOR floor), due 12/01/2025)(8)(10) | 12/5/2017 | 12,500 | 12,384 | 12,500 | 0.4% | ||||||
12,384 | 12,500 | 0.4% | |||||||||||
Fleetwash, Inc. | New Jersey / Commercial Services & Supplies | Senior Secured Term Loan B (11.31% (LIBOR + 9.00% with 1.00% LIBOR floor), due 4/30/2022)(3)(11) | 4/30/2014 | 21,544 | 21,544 | 21,544 | 0.6% | ||||||
Delayed Draw Term Loan – $15,000 Commitment (10.31% (LIBOR + 8.00% with 1.00% LIBOR floor), expires 4/30/2022)(11)(15) | 4/30/2014 | — | — | — | —% | ||||||||
21,544 | 21,544 | 0.6% | |||||||||||
Galaxy XV CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.42%, due 10/15/2030)(5)(14) | 3/14/2013 | 50,525 | 34,853 | 30,457 | 0.9% | ||||||
34,853 | 30,457 | 0.9% | |||||||||||
Galaxy XXVII CLO, Ltd. (f/k/a Galaxy XVI CLO, Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.57%, due 5/16/2031)(5)(14) | 4/17/2018 | 24,575 | 16,936 | 13,688 | 0.4% | ||||||
16,936 | 13,688 | 0.4% | |||||||||||
Galaxy XXVIII CLO, Ltd. (f/k/a Galaxy XVII CLO, Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 10.89%, due 7/15/2031)(5)(6)(14) | 6/27/2014 | 39,905 | 28,009 | 22,335 | 0.7% | ||||||
28,009 | 22,335 | 0.7% | |||||||||||
Galaxy XXVIII CLO, Ltd. | Cayman Islands / Structured Finance | Class F Junior Notes (LIBOR + 8.48%, due 7/15/2031)(6)(11)(14)(37) | 6,658 | 6,159 | 6,159 | 0.2% | |||||||
6,159 | 6,159 | 0.2% | |||||||||||
H.I.G. ECI Merger Sub, Inc. | Massachusetts / IT Services | Revolving Line of Credit – $5,000 Commitment (9.81% (LIBOR + 7.50% with 1.50% LIBOR floor), due 9/30/2018)(11) | 5/31/2018 | — | — | — | —% | ||||||
Senior Secured Term Loan A (7.81% (LIBOR + 5.50% with 1.50% LIBOR floor), due 5/31/2023)(11) | 5/31/2018 | 44,688 | 44,688 | 44,688 | 1.3% | ||||||||
Senior Secured Term Loan B (12.81% (LIBOR + 10.50% with 1.50% LIBOR floor), due 5/31/2023)(11) | 5/31/2018 | 29,900 | 29,900 | 29,900 | 0.9% | ||||||||
74,588 | 74,588 | 2.2% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Halcyon Loan Advisors Funding 2012-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 8/15/2023)(5)(14)(17) | 8/21/2012 | $ | 23,188 | $ | 3,869 | $ | 3,125 | 0.1% | |||
3,869 | 3,125 | 0.1% | |||||||||||
Halcyon Loan Advisors Funding 2013-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 4/15/2025)(5)(14)(17) | 3/28/2013 | 40,400 | 22,057 | 11,017 | 0.3% | ||||||
22,057 | 11,017 | 0.3% | |||||||||||
Halcyon Loan Advisors Funding 2014-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 10.30%, due 4/18/2026)(5)(14) | 3/6/2014 | 24,500 | 14,007 | 11,647 | 0.3% | ||||||
14,007 | 11,647 | 0.3% | |||||||||||
Halcyon Loan Advisors Funding 2014-2 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 8.64%, due 4/28/2025)(5)(6)(14) | 4/28/2014 | 41,164 | 24,290 | 19,050 | 0.6% | ||||||
24,290 | 19,050 | 0.6% | |||||||||||
Halcyon Loan Advisors Funding 2015-3 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 19.80%, due 10/18/2027)(5)(6)(14) | 9/3/2015 | 39,598 | 34,675 | 32,513 | 1.0% | ||||||
34,675 | 32,513 | 1.0% | |||||||||||
Harbortouch Payments, LLC | Pennsylvania / Commercial Services & Supplies | Escrow Receivable | 3/31/2014 | — | 917 | —% | |||||||
— | 917 | —% | |||||||||||
HarbourView CLO VII-R, Ltd. (f/k/a HarbourView CLO VII, Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 18.94%, due 7/18/2031)(5)(6)(14) | 6/10/2015 | 19,025 | 13,411 | 13,689 | 0.4% | ||||||
13,411 | 13,689 | 0.4% | |||||||||||
Help/Systems Holdings, Inc. | Minnesota / Software | Second Lien Term Loan (9.84% (LIBOR + 7.75%, due 3/27/2026)(8)(13) | 4/17/2018 | 11,293 | 11,244 | 11,293 | 0.3% | ||||||
11,244 | 11,293 | 0.3% | |||||||||||
Ingenio, LLC | California / Internet Software & Services | Senior Secured Term Loan (9.82% (LIBOR + 7.50% with 1.25% LIBOR floor), due 9/26/2022)(3)(8)(11) | 9/25/2017 | 9,647 | 9,647 | 9,647 | 0.3% | ||||||
9,647 | 9,647 | 0.3% | |||||||||||
Inpatient Care Management Company, LLC | Florida / Health Care Providers & Services | Senior Secured Term Loan (10.31% (LIBOR + 8.00% with 1.00% LIBOR floor), due 6/8/2021)(3)(11) | 6/8/2016 | 23,698 | 23,698 | 23,698 | 0.7% | ||||||
23,698 | 23,698 | 0.7% | |||||||||||
Janus International Group, LLC | Georgia / Building Products | Second Lien Term Loan (9.84% (LIBOR + 7.75% with 1.00% LIBOR floor), due 2/12/2026)(8)(13) | 2/22/2018 | 10,000 | 9,905 | 10,000 | 0.3% | ||||||
9,905 | 10,000 | 0.3% | |||||||||||
JD Power and Associates | California / Capital Markets | Second Lien Term Loan (10.59% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/7/2024)(3)(8)(13) | 9/16/2016 | 20,000 | 19,799 | 20,000 | 0.6% | ||||||
19,799 | 20,000 | 0.6% | |||||||||||
Jefferson Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 7.20%, due 7/20/2027)(5)(6)(14) | 7/28/2015 | 19,500 | 16,078 | 12,392 | 0.4% | ||||||
16,078 | 12,392 | 0.4% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
K&N Parent, Inc. | California / Auto Components | Second Lien Term Loan (11.08% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/21/2024)(3)(8)(11) | 10/20/2016 | $ | 12,887 | $ | 12,681 | $ | 12,887 | 0.4% | |||
12,681 | 12,887 | 0.4% | |||||||||||
Keystone Acquisition Corp.(36) | Pennsylvania / Health Care Providers & Services | Second Lien Term Loan (11.58% (LIBOR + 9.25% with 1.00% LIBOR floor), due 5/1/2025)(3)(8)(11) | 5/18/2017 | 50,000 | 50,000 | 50,000 | 1.5% | ||||||
50,000 | 50,000 | 1.5% | |||||||||||
LCM XIV Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 16.28%, due 7/21/2031)(5)(14) | 7/11/2013 | 49,934 | 26,516 | 24,257 | 0.7% | ||||||
26,516 | 24,257 | 0.7% | |||||||||||
Madison Park Funding IX, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 57.45%, due 8/15/2022)(5)(14) | 7/18/2012 | 43,110 | 2,058 | 2,200 | 0.1% | ||||||
2,058 | 2,200 | 0.1% | |||||||||||
Maverick Healthcare Equity, LLC | Arizona / Health Care Providers & Services | Preferred Units (10.00%, 1,250,000 units)(16) | 10/31/2007 | 1,252 | 446 | —% | |||||||
Class A Common Units (1,250,000 units)(16) | 10/31/2007 | — | — | —% | |||||||||
1,252 | 446 | —% | |||||||||||
MedMark Services, Inc.(51) | Texas / Health Care Providers & Services | Second Lien Term Loan (10.55% (LIBOR + 8.25% with 1.00% LIBOR floor), due 3/1/2025)(3)(8)(11) | 3/16/2018 | 7,000 | 6,933 | 6,933 | 0.2% | ||||||
6,933 | 6,933 | 0.2% | |||||||||||
Memorial MRI & Diagnostic, LLC | Texas / Health Care Providers & Services | Senior Secured Term Loan (10.83% (LIBOR + 8.50% with 1.00% LIBOR floor), due 3/16/2022)(11) | 3/16/2017 | 36,925 | 36,925 | 36,925 | 1.1% | ||||||
36,925 | 36,925 | 1.1% | |||||||||||
Mobile Posse, Inc. | Virginia / Media | First Lien Term Loan (10.83% (LIBOR + 8.50% with 2.00% LIBOR floor), due 4/3/2023)(3)(11) | 4/3/2018 | 27,700 | 27,700 | 27,700 | 0.8% | ||||||
27,700 | 27,700 | 0.8% | |||||||||||
Mountain View CLO 2013-I Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.66%, due 10/15/2030)(5)(14) | 5/1/2013 | 43,650 | 28,357 | 23,267 | 0.7% | ||||||
28,357 | 23,267 | 0.7% | |||||||||||
Mountain View CLO IX Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.63%, due 7/15/2031)(5)(6)(14) | 6/25/2015 | 47,830 | 31,528 | 37,333 | 1.1% | ||||||
31,528 | 37,333 | 1.1% | |||||||||||
MRP Holdco, Inc. | Massachusetts / IT Services | Senior Secured Term Loan A (6.59% (LIBOR + 4.50% with 1.50% LIBOR floor), due 4/17/2024)(3)(13) | 4/17/2018 | 43,000 | 43,000 | 43,000 | 1.3% | ||||||
Senior Secured Term Loan B (10.59% (LIBOR + 8.50% with 1.50% LIBOR floor), due 4/17/2024)(13) | 4/17/2018 | 43,000 | 43,000 | 43,000 | 1.3% | ||||||||
86,000 | 86,000 | 2.6% | |||||||||||
Octagon Investment Partners XV, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 14.58%, due 7/19/2030)(5)(14) | 2/20/2013 | 42,063 | 31,734 | 26,350 | 0.8% | ||||||
31,734 | 26,350 | 0.8% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Octagon Investment Partners 18-R Ltd. (f/k/a Octagon Investment Partners XVIII, Ltd.) | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 17.26%, due 4/16/2031)(5)(6)(14) | 8/17/2015 | $ | 46,016 | $ | 27,295 | $ | 26,420 | 0.8% | |||
27,295 | 26,420 | 0.8% | |||||||||||
Pearl Intermediate Parent LLC | Connecticut / Health Care Providers & Services | Second Lien Term Loan (8.33% (LIBOR + 6.25%, due 2/15/2026)(8)(13) | 2/28/2018 | 5,000 | 4,976 | 5,000 | 0.1% | ||||||
4,976 | 5,000 | 0.1% | |||||||||||
PeopleConnect Intermediate, LLC (f/k/a Intelius, Inc.) | Washington / Internet Software & Services | Revolving Line of Credit – $1,000 Commitment (11.81% (LIBOR + 9.50% with 1.00% LIBOR floor), due 8/11/2020)(11)(15) | 7/1/2015 | 500 | 500 | 500 | —% | ||||||
Senior Secured Term Loan A (8.81% (LIBOR + 6.50% with 1.00% LIBOR floor), due 7/1/2020)(3)(11) | 7/1/2015 | 18,828 | 18,828 | 18,828 | 0.6% | ||||||||
Senior Secured Term Loan B (14.81% (LIBOR + 12.50% with 1.00% LIBOR floor), due 7/1/2020)(3)(11) | 7/1/2015 | 20,163 | 20,163 | 20,163 | 0.6% | ||||||||
39,491 | 39,491 | 1.2% | |||||||||||
PGX Holdings, Inc. | Utah / Diversified Consumer Services | Second Lien Term Loan (11.09% (LIBOR + 9.00% with 1.00% LIBOR floor), due 9/29/2021)(3)(13) | 9/29/2014 | 118,289 | 118,289 | 118,289 | 3.5% | ||||||
118,289 | 118,289 | 3.5% | |||||||||||
PharMerica Corporation | Kentucky / Pharmaceuticals | Second Lien Term Loan (9.80% (LIBOR + 7.75% with 1.00% LIBOR floor), due 12/7/2025)(8)(13) | 12/7/2017 | 12,000 | 11,882 | 12,000 | 0.4% | ||||||
11,882 | 12,000 | 0.4% | |||||||||||
Photonis Technologies SAS | France / Electronic Equipment, Instruments & Components | First Lien Term Loan (9.83% (LIBOR + 7.50% with 1.00% LIBOR floor), due 9/18/2019)(8)(11)(14) | 9/10/2013 | 12,872 | 12,490 | 12,335 | 0.4% | ||||||
12,490 | 12,335 | 0.4% | |||||||||||
PlayPower, Inc. | North Carolina / Leisure Products | Second Lien Term Loan (11.08% (LIBOR + 8.75% with 1.00% LIBOR floor), due 6/23/2022)(3)(8)(11) | 6/23/2015 | 11,000 | 10,904 | 11,000 | 0.3% | ||||||
10,904 | 11,000 | 0.3% | |||||||||||
Research Now Group, Inc. | Connecticut / Professional Services | First Lien Term Loan (7.86% (LIBOR + 5.50% with 1.00% LIBOR floor), due 12/20/2024)(8)(10) | 1/5/2018 | 9,950 | 9,468 | 9,608 | 0.3% | ||||||
Second Lien Term Loan (11.82% (LIBOR + 9.50% with 1.00% LIBOR floor), due 12/20/2025)(8)(11) | 1/5/2018 | 50,000 | 46,738 | 47,382 | 1.4% | ||||||||
56,206 | 56,990 | 1.7% | |||||||||||
RGIS Services, LLC | Michigan / Commercial Services & Supplies | Senior Secured Term Loan (9.59% (LIBOR + 7.50% with 1.00% LIBOR floor), due 3/31/2023)(3)(8)(13) | 4/20/2017 | 15,173 | 15,113 | 14,339 | 0.4% | ||||||
15,113 | 14,339 | 0.4% | |||||||||||
RME Group Holding Company | Florida / Media | Senior Secured Term Loan A (8.33% (LIBOR + 6.00% with 1.00% LIBOR floor), due 5/4/2022)(3)(11) | 5/4/2017 | 35,146 | 35,146 | 35,146 | 1.0% | ||||||
Senior Secured Term Loan B (13.33% (LIBOR + 11.00% with 1.00% LIBOR floor), due 5/4/2022)(3)(11) | 5/4/2017 | 24,349 | 24,349 | 24,349 | 0.7% | ||||||||
59,495 | 59,495 | 1.7% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Rocket Software, Inc. | Massachusetts / Software | Second Lien Term Loan (11.83% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/14/2024)(3)(8)(11) | 10/20/2016 | $ | 50,000 | $ | 49,219 | $ | 50,000 | 1.5% | |||
49,219 | 50,000 | 1.5% | |||||||||||
Romark WM-R Ltd. (f/k/a Washington Mill CLO Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.41%, due 4/20/2031)(5)(6)(14) | 5/15/2014 | 27,724 | 21,494 | 17,961 | 0.5% | ||||||
21,494 | 17,961 | 0.5% | |||||||||||
Rosa Mexicano | New York / Hotels, Restaurants & Leisure | Revolving Line of Credit – $2,500 Commitment (9.83% (LIBOR + 7.50% with 1.50% LIBOR floor), due 3/29/2023(11)(15) | 3/29/2018 | — | — | — | —% | ||||||
Senior Secured Term Loan (9.83% (LIBOR + 7.50% with 1.50% LIBOR floor), due 3/29/2023(3)(11) | 3/29/2018 | 29,813 | 29,813 | 29,813 | 0.9% | ||||||||
29,813 | 29,813 | 0.9% | |||||||||||
SCS Merger Sub, Inc. | Texas / IT Services | Second Lien Term Loan (11.59% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/30/2023)(3)(8)(13) | 11/6/2015 | 20,000 | 19,605 | 20,000 | 0.6% | ||||||
19,605 | 20,000 | 0.6% | |||||||||||
Securus Technologies Holdings, Inc. | Texas / Communications Equipment | Second Lien Term Loan (10.34% (LIBOR + 8.25% with 1.00% LIBOR floor), due 11/01/2025)(8)(13) | 11/3/2017 | 40,000 | 39,860 | 40,000 | 1.2% | ||||||
39,860 | 40,000 | 1.2% | |||||||||||
SEOTownCenter, Inc | Utah / Internet Software & Services | Senior Secured Term Loan A (9.84% (LIBOR + 7.50% with 2.00% LIBOR floor), due 4/07/2023)(3)(11) | 4/10/2018 | 25,000 | 25,000 | 25,000 | 0.7% | ||||||
Senior Secured Term Loan B (14.84% (LIBOR + 12.50% with 2.00% LIBOR floor), due 4/07/2023)(3)(11) | 4/10/2018 | 17,000 | 17,000 | 17,000 | 0.5% | ||||||||
42,000 | 42,000 | 1.2% | |||||||||||
SESAC Holdco II LLC | Tennessee / Media | Second Lien Term Loan (9.34% (LIBOR + 7.25% with 1.00% LIBOR floor), due 2/23/2025)(8)(13) | 3/2/2017 | 3,000 | 2,975 | 2,975 | 0.1% | ||||||
2,975 | 2,975 | 0.1% | |||||||||||
Small Business Whole Loan Portfolio(41) | New York / Online Lending | 124 Small Business Loans purchased from On Deck Capital, Inc. | 2/21/2014 | 30 | 30 | 17 | —% | ||||||
30 | 17 | —% | |||||||||||
SMG US Midco | Pennsylvania / Hotels, Restaurants & Leisure | Second Lien Term Loan (9.09% (LIBOR + 7.00%, due 1/23/2026)(8)(13) | 1/23/2018 | 7,500 | 7,482 | 7,482 | 0.2% | ||||||
7,482 | 7,482 | 0.2% | |||||||||||
Spartan Energy Services, Inc. | Louisiana / Energy Equipment & Services | Senior Secured Term Loan A (7.98% (LIBOR + 6.00% with 1.00% LIBOR floor), due 12/28/2018)(13) | 10/20/2014 | 13,156 | 12,528 | 13,046 | 0.4% | ||||||
Senior Secured Term Loan B (13.98% PIK (LIBOR + 12.00% with 1.00% LIBOR floor), due 12/28/2018)(13)(46) | 10/20/2014 | 18,237 | 16,838 | 18,237 | 0.5% | ||||||||
29,366 | 31,283 | 0.9% | |||||||||||
Spectrum Holdings III Corp | Georgia / Health Care Equipment & Supplies | Second Lien Term Loan (9.09% (LIBOR + 7.00% with 1.00% LIBOR floor), due 1/31/2026)(8)(13) | 1/31/2018 | 7,500 | 7,464 | 7,464 | 0.2% | ||||||
7,464 | 7,464 | 0.2% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Strategic Materials | Texas / Household Durables | Second Lien Term Loan (10.10% (LIBOR + 7.75% with 1.00% LIBOR floor), due 11/1/2025)(8)(11) | 11/1/2017 | $ | 7,000 | $ | 6,936 | $ | 6,936 | 0.2% | |||
6,936 | 6,936 | 0.2% | |||||||||||
Stryker Energy, LLC | Louisiana / Energy Equipment & Services | Overriding Royalty Interests (43) | 12/4/2006 | — | — | —% | |||||||
— | — | —% | |||||||||||
Sudbury Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 5.47%, due 1/17/2026)(5)(14) | 12/5/2013 | 28,200 | 18,183 | 14,218 | 0.4% | ||||||
18,183 | 14,218 | 0.4% | |||||||||||
Symphony CLO XIV Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 3.78%, due 7/14/2026)(5)(6)(14) | 5/29/2014 | 49,250 | 34,297 | 27,478 | 0.8% | ||||||
34,297 | 27,478 | 0.8% | |||||||||||
Symphony CLO XV, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 7.30%, due 10/17/2026)(5)(14) | 11/17/2014 | 50,250 | 39,512 | 32,433 | 1.0% | ||||||
39,512 | 32,433 | 1.0% | |||||||||||
TGP HOLDINGS III LLC | Oregon / Household Durables | Second Lien Term Loan (10.83% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/25/2025)(8)(11) | 10/3/2017 | 3,000 | 2,959 | 2,959 | 0.1% | ||||||
2,959 | 2,959 | 0.1% | |||||||||||
TouchTunes Interactive Networks, Inc. | New York / Internet Software & Services | Second Lien Term Loan (10.25% (LIBOR + 8.25% with 1.00% LIBOR floor), due 5/29/2022)(3)(8)(13) | 5/29/2015 | 14,000 | 13,926 | 14,000 | 0.4% | ||||||
13,926 | 14,000 | 0.4% | |||||||||||
Town & Country Holdings, Inc. | New York / Distributors | First Lien Term Loan (11.33% (LIBOR + 9.00% with 1.25% LIBOR floor), due 1/26/2023)(3)(11) | 1/26/2018 | 69,650 | 69,650 | 69,650 | 2.0% | ||||||
69,650 | 69,650 | 2.0% | |||||||||||
Transplace Holdings, Inc. | Texas / Transportation Infrastructure | Second Lien Term Loan (10.79% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/6/2025)(8)(13) | 10/5/2017 | 28,104 | 27,494 | 28,104 | 0.8% | ||||||
27,494 | 28,104 | 0.8% | |||||||||||
Turning Point Brands, Inc.(42) | Kentucky / Tobacco | Second Lien Term Loan (9.04% (LIBOR + 7.00%), due 3/7/2024)(3)(8)(13) | 2/17/2017 | 14,500 | 14,392 | 14,392 | 0.4% | ||||||
14,392 | 14,392 | 0.4% | |||||||||||
United Sporting Companies, Inc.(18) | South Carolina / Distributors | Second Lien Term Loan (13.09% (LIBOR + 11.00% with 1.75% LIBOR floor) plus 2.00% PIK, in non-accrual status effective 4/1/2017, due 11/16/2019)(13)(46) | 9/28/2012 | 149,126 | 127,091 | 58,806 | 1.7% | ||||||
Common Stock (24,967 shares)(16) | 5/2/2017 | — | — | —% | |||||||||
127,091 | 58,806 | 1.7% | |||||||||||
Universal Fiber Systems, LLC | Virginia / Textiles, Apparel & Luxury Goods | Second Lien Term Loan (11.60% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/02/2022)(3)(8)(12) | 10/2/2015 | 37,000 | 36,551 | 37,000 | 1.1% | ||||||
36,551 | 37,000 | 1.1% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Universal Turbine Parts, LLC | Alabama / Trading Companies & Distributors | Senior Secured Term Loan A (8.06% (LIBOR + 5.75% with 1.00% LIBOR floor), due 7/22/2021)(3)(11) | 7/22/2016 | $ | 31,363 | $ | 31,363 | $ | 27,926 | 0.8% | |||
Senior Secured Term Loan B (14.06% (LIBOR + 11.75% with 1.00% LIBOR floor), due 7/22/2021)(11) | 7/22/2016 | 32,500 | 32,500 | 28,273 | 0.8% | ||||||||
63,863 | 56,199 | 1.6% | |||||||||||
USG Intermediate, LLC | Texas / Leisure Products | Revolving Line of Credit – $2,500 Commitment (11.34% (LIBOR + 9.25% with 1.00% LIBOR floor), due 8/24/2018)(13)(15) | 4/15/2015 | 2,500 | 2,500 | 2,500 | 0.1% | ||||||
Senior Secured Term Loan A (8.84% (LIBOR + 6.75% with 1.00% LIBOR floor), due 8/24/2022)(3)(13) | 4/15/2015 | 11,385 | 11,385 | 11,385 | 0.3% | ||||||||
Senior Secured Term Loan B (13.84% (LIBOR + 11.75% with 1.00% LIBOR floor), due 8/24/2022)(3)(13) | 4/15/2015 | 20,741 | 20,741 | 20,741 | 0.6% | ||||||||
Equity(16) | 4/15/2015 | 1 | — | —% | |||||||||
34,627 | 34,626 | 1.0% | |||||||||||
UTZ Quality Foods, LLC | Pennsylvania / Food Products | Second Lien Term Loan (9.34% (LIBOR + 7.25%, due 11/21/2025)(8)(13) | 11/21/2017 | 10,000 | 9,884 | 9,886 | 0.3% | ||||||
9,884 | 9,886 | 0.3% | |||||||||||
VC GB Holdings, Inc. | Illinois / Household Durables | Subordinated Secured Term Loan (10.09% (LIBOR + 8.00% with 1.00% LIBOR floor), due 2/28/2025)(3)(8)(13) | 2/28/2017 | 16,000 | 15,750 | 16,000 | 0.5% | ||||||
15,750 | 16,000 | 0.5% | |||||||||||
Venio LLC | Pennsylvania / Professional Services | Second Lien Term Loan (4.00% plus PIK 10.00% (LIBOR + 7.50% with 2.50% LIBOR floor), due 2/19/2020)(11)(46) | 2/19/2014 | 22,048 | 18,066 | 20,001 | 0.6% | ||||||
18,066 | 20,001 | 0.6% | |||||||||||
Voya CLO 2012-2, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(5)(14)(17) | 8/28/2012 | 38,070 | 450 | 595 | —% | ||||||
450 | 595 | —% | |||||||||||
Voya CLO 2012-3, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(5)(14)(17) | 10/18/2012 | 46,632 | — | 585 | —% | ||||||
— | 585 | —% | |||||||||||
Voya CLO 2012-4, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 11.96%, due 10/16/2028)(5)(14) | 11/29/2012 | 40,613 | 30,893 | 28,264 | 0.8% | ||||||
30,893 | 28,264 | 0.8% | |||||||||||
Voya CLO 2014-1, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 16.47%, due 4/18/2031)(5)(6)(14) | 3/13/2014 | 40,773 | 28,205 | 26,931 | 0.8% | ||||||
28,205 | 26,931 | 0.8% | |||||||||||
Voya CLO 2016-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.68%, due 10/18/2027)(5)(6)(14) | 10/27/2016 | 28,100 | 27,180 | 22,912 | 0.7% | ||||||
27,180 | 22,912 | 0.7% | |||||||||||
Voya CLO 2017-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.26%, due 7/20/2030)(5)(6)(14) | 7/12/2017 | 44,885 | 47,400 | 43,351 | 1.3% | ||||||
47,400 | 43,351 | 1.3% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Acquisition Date (53) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | |||||||||||||
Wink Holdco, Inc. | Texas / Insurance | Second Lien Term Loan (8.85% (LIBOR + 6.75% with 1.00% LIBOR floor), due 12/1/2025)(8)(13) | 12/1/2017 | $ | 3,000 | $ | 2,986 | $ | 2,986 | 0.1% | |||
2,986 | 2,986 | 0.1% | |||||||||||
Total Non-Control/Non-Affiliate Investments (Level 3) | $ | 3,475,295 | $ | 3,264,517 | 95.8% | ||||||||
Total Portfolio Investments (Level 3) | $ | 5,831,458 | $ | 5,727,279 | 168.1% |
(1) | The terms “Prospect,” “the Company,” “we,” “us” and “our” mean Prospect Capital Corporation and its subsidiaries unless the context specifically requires otherwise. The securities in which Prospect has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act. |
(2) | Fair value is determined by or under the direction of our Board of Directors. As of December 31, 2018 and June 30, 2018, all of our investments were valued using significant unobservable inputs. In accordance with ASC 820, such investments are classified as Level 3 within the fair value hierarchy. See Notes 2 and 3 within the accompanying notes to consolidated financial statements for further discussion. |
(3) | Security, or a portion thereof, is held by Prospect Capital Funding LLC (“PCF”), our wholly-owned subsidiary and a bankruptcy remote special purpose entity, and is pledged as collateral for the Revolving Credit Facility and such security is not available as collateral to our general creditors (see Note 4). The fair values of the investments held by PCF at December 31, 2018 and June 30, 2018 were $1,604,357 and $1,307,955, respectively, representing 27.5% and 22.8% of our total investments, respectively. |
(4) | In addition to the stated returns, the net profits interest held will be realized upon sale of the borrower or a sale of the interests. |
(5) | This investment is in the equity class of the collateralized loan obligation (“CLO”) security. The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield, calculated using amortized cost, is based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions. |
(6) | Co-investment with another fund managed by an affiliate of our investment adviser, Prospect Capital Management L.P. See Note 13 for further discussion. |
(7) | Engine Group. Inc., Clearstream.TV. Inc., and ORC International, Inc., are joint borrowers on the senior secured and the second lien term loans. |
(8) | Syndicated investment which was originated by a financial institution and broadly distributed. |
(9) | Autodata, Inc. and Autodata Solutions, Inc. are joint borrowers. |
(10) | The interest rate on these investments is subject to the base rate of 6-Month LIBOR, which was 2.88% and 2.50% at December 31, 2018 and June 30, 2018, respectively. The current base rate for each investment may be different from the reference rate on December 31, 2018 and June 30, 2018. |
(11) | The interest rate on these investments is subject to the base rate of 3-Month LIBOR, which was 2.81% and 2.34% at December 31, 2018 and June 30, 2018, respectively. The current base rate for each investment may be different from the reference rate on December 31, 2018 and June 30, 2018. |
(12) | The interest rate on these investments is subject to the base rate of 2-Month LIBOR, which was 2.61% and 2.17% at December 31, 2018 and June 30, 2018, respectively. The current base rate for each investment may be different from the reference rate on December 31, 2018 and June 30, 2018. |
(13) | The interest rate on these investments is subject to the base rate of 1-Month LIBOR, which was 2.50% and 2.09% at December 31, 2018 and June 30, 2018, respectively. The current base rate for each investment may be different from the reference rate on December 31, 2018 and June 30, 2018. |
(14) | Investment has been designated as an investment not “qualifying” under Section 55(a) of the Investment Company Act of 1940 (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of December 31, 2018 and June 30, 2018, our qualifying assets as a percentage of total assets, stood at 74.69% and 73.20%, respectively. We monitor the status of these assets on an ongoing basis. |
(15) | Undrawn committed revolvers and delayed draw term loans to our portfolio companies incur commitment and unused fees ranging from 0.00% to 5.00%. As of December 31, 2018 and June 30, 2018, we had $24,737 and $29,675, respectively, of undrawn revolver and delayed draw term loan commitments to our portfolio companies. |
(16) | Represents non-income producing security that has not paid a dividend in the year preceding the reporting date. |
(17) | The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital with any remaining unamortized investment costs written off if the actual distributions are less than the amortized investment cost. If an investment has been impaired upon being called, any future distributions will be recorded as a return of capital. To the extent that the impaired CLO’s cost basis is fully recovered, any future distributions will be recorded as realized gains. |
(18) | Ellett Brothers, LLC, Evans Sports, Inc., Jerry’s Sports, Inc., Simmons Gun Specialties, Inc., Bonitz Brothers, Inc., and Outdoor Sports Headquarters, Inc. are joint borrowers on the second lien term loan. United Sporting Companies, Inc. (“USC”) is a parent guarantor of this debt investment, and is 100% owned by SportCo Holdings, Inc. (“SportCo”). Prospect previously held a 3.48% equity interest in SportCo and following an additional issuance common stock by SportCo, Prospect’s ownership increased to 22.0% as of September 30, 2018. As a result, Prospect’s investment in USC is classified as an affiliate investment beginning the period ended September 30, 2018. |
(19) | CCPI Holdings Inc., a consolidated entity in which we own 100% of the common stock, owns 94.59% of CCPI Inc. (“CCPI”), the operating company, as of December 31, 2018 and June 30, 2018. We report CCPI as a separate controlled company. |
(20) | CP Holdings of Delaware LLC, a consolidated entity in which we own 100% of the membership interests, owns 99.8% of CP Energy Services Inc. (“CP Energy”) as of December 31, 2018 and June 30, 2018. CP Energy owns directly or indirectly 100% of each of CP Well Testing, LLC; Wright Foster Disposals, LLC; Foster Testing Co., Inc.; ProHaul Transports, LLC; and Wright Trucking, Inc. We report CP Energy as a separate controlled company. On October 1, 2017, we restructured our investment in CP Energy. Concurrent with the restructuring, we exchanged $35,048 of Series B Convertible Preferred Stock for $35,048 of senior secured debt. On January 18, 2018, CP Energy redeemed common shares belonging to senior management, which increased our ownership percentage from 82.3% to 94.2% as of March 31, 2018. Our ownership percentage in CP Energy further increased to 99.8% as of June 30, 2018 following the April 6, 2018 merger between Arctic Oilfield Equipment USA, Inc. (“Arctic Equipment"), a previously controlled portfolio company, and CP Energy, with CP Energy continuing as the surviving corporation. As a result of this transaction, our equity interest in Arctic Equipment was exchanged for newly issued common shares of CP Energy (See Note 14). |
(21) | Credit Central Holdings of Delaware, LLC (“Credit Central Delaware”), a consolidated entity in which we own 100% of the membership interests, owns 98.26% of Credit Central Loan Company, LLC (f/k/a Credit Central Holdings, LLC (“Credit Central”)) as of December 31, 2018 and June 30, 2018. Credit Central owns 100% of each of Credit Central, LLC; Credit Central South, LLC; Credit Central of Texas, LLC; and Credit Central of Tennessee, LLC, the operating companies. We report Credit Central as a separate controlled company. |
(22) | As of June 30, 2017, Prospect held a 37.1% membership interest in Edmentum Ultimate Holdings, LLC (“Edmentum Holdings”), which owns 100% of the equity of Edmentum, Inc. On February 23, 2018, certain participating members of Edmentum Holdings increased their revolving credit commitment and extended additional credit to Edmentum, Inc. in exchange for additional common units of Edmentum Holdings. As a result, Prospect's equity ownership was diluted to 11.5% and the investment was transferred from control to affiliate investment classification as of March 31, 2018. |
(23) | First Tower Holdings of Delaware LLC, a consolidated entity in which we own 100% of the membership interests, owns 80.1% of First Tower Finance Company LLC (“First Tower Finance”), which owns 100% of First Tower, LLC, the operating company as of December 31, 2018 and June 30, 2018. We report First Tower Finance as a separate controlled company. |
(24) | Energy Solutions Holdings Inc., a consolidated entity in which we own 100% of the equity, owns 100% of Freedom Marine Solutions, LLC (“Freedom Marine”), which owns Vessel Company, LLC, Vessel Company II, LLC and Vessel Company III, LLC. We report Freedom Marine as a separate controlled company. |
(25) | MITY Holdings of Delaware Inc. (“MITY Delaware”), a consolidated entity in which we own 100% of the common stock, owns 95.58% of the equity of MITY, Inc. (f/k/a MITY Enterprises, Inc.) (“MITY”). MITY owns 100% of each of MITY-Lite, Inc. (“Mity-Lite”); Broda Enterprises USA, Inc.; and Broda Enterprises ULC (“Broda Canada”). We report MITY as a separate controlled company. As of June 30, 2018, MITY Delaware has a subordinated unsecured note issued and outstanding to Broda Canada that is denominated in Canadian Dollars (“CAD”). As of December 31, 2018, MITY Delaware assigned the subordinated unsecured note to Prospect. As of December 31, 2018 and June 30, 2018, the principal balance of this note was CAD 7,371. In accordance with ASC 830, Foreign Currency Matters (“ASC 830”), this note was remeasured into our functional currency, US Dollars (USD), and is presented on our Consolidated Schedule of Investments in USD. We formed a separate legal entity domiciled |
(26) | NPH Property Holdings, LLC, a consolidated entity in which we own 100% of the membership interests, owns 100% of the common equity of National Property REIT Corp. (“NPRC”) (f/k/a National Property Holdings Corp.), a property REIT which holds investments in several real estate properties. Additionally, NPRC invests in online consumer loans through ACL Loan Holdings, Inc. (“ACLLH”) and American Consumer Lending Limited (“ACLL”), its wholly-owned subsidiaries. We report NPRC as a separate controlled company. See Note 3 for further discussion of the properties held by NPRC. During the period from July 1, 2018 to December 27, 2018, we received partial repayments of $21,181 for our loans previously outstanding with NPRC and its wholly-owned subsidiaries and $15,000 as a return of capital on our equity investment. Effective December 31, 2018, we amended and restated the terms of our credit agreement with NPRC. As part of the amendment, we increased our investment through a New Term Loan A Secured Note (“New TLA”) in the aggregate principal amount of $433,553 and a New Term Loan B Secured Note (“New TLB”) in the aggregate principal amount of $205,000. Under the new agreement, our profit interest is revised to an amount equal to 25% of NPRC’s quarterly residual profit. NPRC utilized a portion of the proceeds from the New TLA and New TLB to repay the previously outstanding Senior Secured Term Loan A and Senior Secured Term Loan E. The remaining proceeds of $140,351 were returned to us as a return of capital, reducing our equity investment in NPRC. We received structuring fees of $12,771 as a result of the amendment. |
(27) | Nationwide Acceptance Holdings LLC, a consolidated entity in which we own 100% of the membership interests, owns 94.48% of Nationwide Loan Company LLC (f/k/a Nationwide Acceptance LLC), the operating company, as of December 31, 2018 and June 30, 2018. We report Nationwide Loan Company LLC as a separate controlled company. On June 1, 2015, Nationwide Acceptance LLC completed a reorganization and was renamed Nationwide Loan Company LLC (“Nationwide”) and formed two new wholly-owned subsidiaries: Pelican Loan Company LLC (“Pelican”) and Nationwide Consumer Loans LLC. Nationwide assigned 100% of the equity interests in its other subsidiaries to Pelican which, in turn, assigned these interests to a new operating company wholly-owned by Pelican named Nationwide Acceptance LLC (“New Nationwide”). New Nationwide also assumed the existing senior subordinated term loan due to Prospect. |
(28) | NMMB Holdings, a consolidated entity in which we own 100% of the equity, owns 91.52% of the fully diluted equity of NMMB, Inc. (“NMMB”) as of December 31, 2018 and June 30, 2018. NMMB owns 100% of Refuel Agency, Inc., which owns 100% of Armed Forces Communications, Inc. We report NMMB as a separate controlled company. |
(29) | On June 3, 2017, Gulf Coast Machine & Supply Company (“Gulf Coast”) sold all of its assets to a third party, for total consideration of $10,250, including escrowed amounts. The proceeds from the sale were primarily used to repay a $6,115 third party revolving credit facility, and the remainder was used to pay other legal and administrative costs incurred by Gulf Coast. As no proceeds were allocated to Prospect, our debt and equity investment in Gulfco was written-off and we recorded a realized loss of $66,103, during the year ended June 30, 2017. On June 28, 2017, Gulf Coast was renamed as SB Forging Company II, Inc. In June 2018, SB Forging Company II, Inc. received escrow proceeds of $2,050 related to the sale. The escrow proceeds and $752 of excess cash held at SB Forging Company II, Inc. were subsequently distributed to Prospect Administration and offset amounts Due to Prospect Administration in our Consolidated Statement of Assets and Liabilities as of December 31, 2018. In connection with the liquidation of our investment, we recorded a realized gain of $2,802 in our Consolidated Statement of Operations for the three months ended December 31, 2018. |
(30) | Prospect owns 99.96% of the equity of USES Corp. as of December 31, 2018 and June 30, 2018. |
(31) | Valley Electric Holdings I, Inc., a consolidated entity in which we own 100% of the common stock, owns 100% of Valley Electric Holdings II, Inc. (“Valley Holdings II”), another consolidated entity. Valley Holdings II owns 94.99% of Valley Electric Company, Inc. (“Valley Electric”). Valley Electric owns 100% of the equity of VE Company, Inc., which owns 100% of the equity of Valley Electric Co. of Mt. Vernon, Inc. We report Valley Electric as a separate controlled company. |
(32) | On March 14, 2017, assets previously held by Ark-La-Tex Wireline Services, LLC (“Ark-La-Tex”) were assigned to Wolf Energy Services Company, LLC, a new wholly-owned subsidiary of Wolf Energy Holdings, in exchange for a full reduction of Ark-La-Tex’s Senior Secured Term Loan A and a partial reduction of the Senior Secured Term Loan B cost basis, in total equal to $22,145. The cost basis of the transferred assets is equal to the appraised fair value of assets at the time of transfer. During the three months ended June 30, 2017, Ark-La-Tex Term Loan B was written-off and a loss of $19,818 was realized. On June 30, 2017, the 18.00% Senior Secured Promissory Note, due April 15, 2018, in Wolf Energy, LLC was contributed to the equity of Wolf Energy LLC. There was no impact from the transaction due to the note being on non-accrual status and having zero cost basis. |
(33) | Prospect owns 9.67% and 16.04% of the equity in Targus Cayman HoldCo Limited, the parent company of Targus International LLC (“Targus”) as of December 31, 2018 and June 30, 2018, respectively. On September 25, 2017, Prospect exchanged $1,600 of Senior Secured Term Loan A and $4,799 of Senior Secured Term Loan B investments in Targus into 6,120,658 of common shares, and recorded a realized gain of $846, as a result of this transaction. |
(34) | We own 99.9999% of AGC/PEP, LLC (“AGC/PEP”). As of September 30, 2016, AGC/PEP, owned 2,038 out of a total of 93,485 shares (including 7,456 vested and unvested management options) of American Gilsonite Holding Company (“AGC Holdco”) which owns 100% of American Gilsonite Company (“AGC”). On October 24, 2016, AGC filed for a joint prepackaged plan of reorganization under Chapter 11 of the bankruptcy code. During the year ended June 30, 2017, AGC emerged from bankruptcy and AGC Holdco was dissolved. AGC/PEP received a total of 131 shares representing a total ownership stake of 0.05% in AGC. On December 7, 2018, AGC/PEP sold all 131 shares back to AGC. As a result of the transaction, Prospect recorded a realized gain of $24 in our Consolidated Statement of Operations for the three months ended December 31, 2018. |
(35) | Centerfield Media Holding Company and Oology Direct Holdings, Inc. are joint borrowers and guarantors on the senior secured loan facilities. |
(36) | Keystone Acquisition Corp. is the parent borrower on the second lien term loan. Other joint borrowers on this debt investment include Keystone Peer Review Organization, Inc., KEPRO Acquisitions, Inc., APS Healthcare Bethesda, Inc., Ohio KEPRO, Inc., and APS Healthcare Quality Review, Inc. |
(37) | These investments are in the debt class of the CLO security. As of June 30, 2018, the all-in interest rate of the Galaxy XXVIII CLO, Ltd. Class F Junior Note was not yet determined as the investment was unsettled. |
(38) | The consolidated revenue interest is equal to the lesser of (i) 2.0% of consolidated revenue for the twelve-month period ending on the last day of the prior fiscal quarter (or portion thereof) and (ii) 25% of the amount of interest accrued on the Notes at the cash interest rate for such fiscal quarter (or portion thereof). |
(39) | As of December 31, 2018 and June 30, 2018, Prospect owns 8.57% of the equity in Encinitas Watches Holdco, LLC (f/k/a Nixon Holdco, LLC), the parent company of Nixon, Inc. On February 26, 2018, Prospect entered into a debt forgiveness agreement with Nixon, Inc., which terminated $17,472 Senior Secured Term Loan receivable due to us. We recorded a realized loss of $14,197 in our Consolidated Statement of Operations for the year ended June 30, 2018 as a result of this transaction. |
(40) | On May 29, 2018, Prospect exercised its rights and remedies under its loan documents to exercise the shareholder voting rights in respect of the stock of Pacific World Corporation (“Pacific World”) and to appoint a new Board of Directors of Pacific World. As a result, Prospect’s investment in Pacific World is classified as a control investment. |
(41) | Our wholly-owned subsidiary Prospect Small Business Lending, LLC purchases small business whole loans from small business loan originators, including On Deck Capital, Inc. |
(42) | Turning Point Brands, Inc. and North Atlantic Trading Company, Inc. are joint borrowers and guarantors on the secured loan facility. |
(43) | The overriding royalty interests held receive payments at the stated rates based upon operations of the borrower. |
(44) | The following shows the composition of our investment portfolio at cost by control designation, investment type and by industry as of December 31, 2018: |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Cost Total | ||||||||||||
Control Investments | ||||||||||||||||||
Aerospace & Defense | $ | 50,823 | $ | — | $ | — | $ | — | $ | 22,738 | $ | 73,561 | ||||||
Commercial Services & Supplies | 122,417 | — | — | 7,200 | 6,849 | 136,466 | ||||||||||||
Construction & Engineering | 43,311 | — | — | — | 26,204 | 69,515 | ||||||||||||
Consumer Finance | — | 340,204 | — | 116,839 | 457,043 | |||||||||||||
Electronic Equipment, Instruments & Components | 20,363 | — | — | — | 6,759 | 27,122 | ||||||||||||
Energy Equipment & Services | 35,048 | — | — | — | 192,216 | 227,264 | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 433,553 | — | — | — | 62,887 | 496,440 | ||||||||||||
Health Care Providers & Services | 240,158 | — | — | — | — | 240,158 |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Cost Total | ||||||||||||
Machinery | $ | — | $ | 28,622 | $ | — | $ | — | $ | 6,866 | $ | 35,488 | ||||||
Online Lending | 205,000 | — | — | — | 100,949 | 305,949 | ||||||||||||
Media | 7,614 | — | — | — | 12,869 | 20,483 | ||||||||||||
Personal Products | 213,325 | — | — | — | 15,000 | 228,325 | ||||||||||||
Trading Companies & Distributors | 63,538 | — | — | — | — | 63,538 | ||||||||||||
Total Control Investments | $ | 1,435,150 | $ | 368,826 | $ | — | $ | 7,200 | $ | 570,176 | $ | 2,381,352 | ||||||
Affiliate Investments | ||||||||||||||||||
Diversified Consumer Services | $ | — | $ | 1,772 | $ | — | $ | 31,679 | $ | 6,577 | $ | 40,028 | ||||||
Textiles, Apparel & Luxury Goods | — | — | — | — | 9,878 | 9,878 | ||||||||||||
Distributors | — | 127,091 | — | — | — | 127,091 | ||||||||||||
Total Affiliate Investments | $ | — | $ | 128,863 | $ | — | $ | 31,679 | $ | 16,455 | $ | 176,997 | ||||||
Non-Control/Non-Affiliate Investments | ||||||||||||||||||
Air Freight & Logistics | $ | — | $ | 12,316 | $ | — | $ | — | $ | — | $ | 12,316 | ||||||
Auto Components | — | 25,409 | — | — | — | 25,409 | ||||||||||||
Building Products | — | 19,830 | — | — | — | 19,830 | ||||||||||||
Capital Markets | — | 21,534 | — | — | — | 21,534 | ||||||||||||
Commercial Services & Supplies | 63,029 | 164,035 | — | — | — | 227,064 | ||||||||||||
Communications Equipment | — | 47,877 | — | — | — | 47,877 | ||||||||||||
Consumer Finance | 17,762 | — | — | — | — | 17,762 | ||||||||||||
Distributors | 173,733 | — | — | — | — | 173,733 | ||||||||||||
Diversified Consumer Services | — | 109,190 | — | — | — | 109,190 | ||||||||||||
Diversified Telecommunication Services | — | 24,567 | — | — | — | 24,567 | ||||||||||||
Electronic Equipment, Instruments & Components | 12,654 | — | — | — | — | 12,654 | ||||||||||||
Energy Equipment & Services | 34,133 | — | — | — | — | 34,133 | ||||||||||||
Entertainment | 26,355 | 16,912 | — | — | — | 43,267 | ||||||||||||
Food Products | — | 34,709 | — | — | — | 34,709 | ||||||||||||
Health Care Equipment & Supplies | 34,945 | 7,467 | — | — | — | 42,412 | ||||||||||||
Health Care Providers & Services | 138,294 | 96,234 | — | — | 1,252 | 235,780 | ||||||||||||
Hotels, Restaurants & Leisure | 29,438 | 7,483 | — | — | — | 36,921 | ||||||||||||
Household Durables | 16,056 | 22,604 | — | — | — | 38,660 | ||||||||||||
Household Products | 24,813 | — | — | — | — | 24,813 | ||||||||||||
Insurance | — | 2,987 | — | — | — | 2,987 | ||||||||||||
Interactive Media & Services | 48,449 | — | — | — | — | 48,449 | ||||||||||||
IT Services | 273,306 | 31,129 | — | — | — | 304,435 | ||||||||||||
Leisure Products | 29,537 | 10,916 | — | — | 1 | 40,454 | ||||||||||||
Media | 98,595 | 35,000 | — | — | — | 133,595 | ||||||||||||
Paper & Forest Products | — | 11,345 | — | — | — | 11,345 | ||||||||||||
Pharmaceuticals | — | 11,883 | — | — | — | 11,883 | ||||||||||||
Professional Services | 118,965 | 67,701 | — | — | — | 186,666 | ||||||||||||
Real Estate Management & Development | 41,370 | — | — | — | — | 41,370 | ||||||||||||
Software | — | 69,455 | — | — | — | 69,455 | ||||||||||||
Technology Hardware, Storage & Peripherals | — | 12,392 | — | — | — | 12,392 | ||||||||||||
Textiles, Apparel & Luxury Goods | 271,227 | 36,604 | — | — | — | 307,831 | ||||||||||||
Tobacco | — | 14,405 | — | — | — | 14,405 | ||||||||||||
Transportation Infrastructure | — | 27,536 | — | — | — | 27,536 | ||||||||||||
Structured Finance (A) | — | — | 1,142,613 | — | — | 1,142,613 | ||||||||||||
Total Non-Control/ Non-Affiliate | $ | 1,452,661 | $ | 941,520 | $ | 1,142,613 | $ | — | $ | 1,253 | $ | 3,538,047 | ||||||
Total Portfolio Investment Cost | $ | 2,887,811 | $ | 1,439,209 | $ | 1,142,613 | $ | 38,879 | $ | 587,884 | $ | 6,096,396 |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Control Investments | ||||||||||||||||||||
Aerospace & Defense | $ | 50,823 | $ | — | $ | — | $ | — | $ | 40,997 | $ | 91,820 | 2.8 | % | ||||||
Commercial Services & Supplies | 67,809 | — | — | 451 | — | 68,260 | 2.1 | % | ||||||||||||
Construction & Engineering | 43,311 | — | — | — | 46,447 | 89,758 | 2.7 | % | ||||||||||||
Consumer Finance | — | 343,655 | — | — | 201,840 | 545,495 | 16.5 | % | ||||||||||||
Electronic Equipment, Instruments & Components | 20,363 | — | — | — | 20,919 | 41,282 | 1.3 | % | ||||||||||||
Energy Equipment & Services | 35,048 | — | — | — | 105,208 | 140,256 | 4.2 | % | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 433,553 | — | — | — | 372,199 | 805,752 | 24.4 | % | ||||||||||||
Health Care Providers & Services | 221,358 | — | — | — | — | 221,358 | 6.7 | % | ||||||||||||
Machinery | — | 24,670 | — | — | — | 24,670 | 0.7 | % | ||||||||||||
Media | 7,614 | — | — | — | 16,432 | 24,046 | 0.7 | % | ||||||||||||
Online Lending | 205,000 | — | — | — | 5,707 | 210,707 | 6.4 | % | ||||||||||||
Personal Products | 132,530 | — | — | — | — | 132,530 | 4.0 | % | ||||||||||||
Trading Companies & Distributors | 36,832 | — | — | — | — | 36,832 | 1.1 | % | ||||||||||||
Total Control Investments | $ | 1,254,241 | $ | 368,325 | $ | — | $ | 451 | $ | 809,749 | $ | 2,432,766 | 73.6 | % | ||||||
Fair Value % of Net Assets | 37.9 | % | 11.2 | % | — | % | — | % | 24.5 | % | 73.6 | % | ||||||||
Affiliate Investments | ||||||||||||||||||||
Diversified Consumer Services | $ | — | $ | 1,772 | $ | — | $ | 25,582 | $ | — | $ | 27,354 | 0.8 | % | ||||||
Textiles, Apparel & Luxury Goods | — | — | — | — | 21,537 | 21,537 | 0.7 | % | ||||||||||||
Distributors | — | 42,970 | — | — | — | 42,970 | 1.3 | % | ||||||||||||
Total Affiliate Investments | $ | — | $ | 44,742 | $ | — | $ | 25,582 | $ | 21,537 | $ | 91,861 | 2.8 | % | ||||||
Fair Value % of Net Assets | — | % | 1.4 | % | — | % | 0.7 | % | 0.7 | % | 2.8 | % | ||||||||
Non-Control/Non-Affiliate Investments | ||||||||||||||||||||
Air Freight & Logistics | $ | — | $ | 12,316 | $ | — | $ | — | $ | — | $ | 12,316 | 0.4 | % | ||||||
Auto Components | — | 25,409 | — | — | — | 25,409 | 0.8 | % | ||||||||||||
Building Products | — | 19,249 | — | — | — | 19,249 | 0.6 | % | ||||||||||||
Capital Markets | — | 21,673 | — | — | — | 21,673 | 0.7 | % | ||||||||||||
Commercial Services & Supplies | 61,724 | 165,056 | — | — | 951 | 227,731 | 6.9 | % | ||||||||||||
Communications Equipment | — | 47,171 | — | — | — | 47,171 | 1.4 | % | ||||||||||||
Consumer Finance | 15,705 | — | — | — | — | 15,705 | 0.5 | % | ||||||||||||
Distributors | 172,571 | — | — | — | — | 172,571 | 5.2 | % | ||||||||||||
Diversified Consumer Services | — | 109,190 | — | — | — | 109,190 | 3.3 | % | ||||||||||||
Diversified Telecommunication Services | — | 24,567 | — | — | — | 24,567 | 0.7 | % | ||||||||||||
Electronic Equipment, Instruments & Components | 12,654 | — | — | — | — | 12,654 | 0.4 | % | ||||||||||||
Energy Equipment & Services | 33,758 | — | — | — | — | 33,758 | 1.0 | % | ||||||||||||
Entertainment | 26,405 | 16,909 | — | — | — | 43,314 | 1.3 | % | ||||||||||||
Food Products | — | 34,478 | — | — | — | 34,478 | 1.1 | % | ||||||||||||
Health Care Equipment & Supplies | 33,780 | 7,146 | — | — | — | 40,926 | 1.2 | % | ||||||||||||
Health Care Providers & Services | 136,293 | 95,369 | — | — | 868 | 232,530 | 7.0 | % | ||||||||||||
Hotels, Restaurants & Leisure | 29,438 | 7,419 | — | — | — | 36,857 | 1.1 | % | ||||||||||||
Household Durables | 14,923 | 21,733 | — | — | — | 36,656 | 1.1 | % | ||||||||||||
Household Products | 24,813 | — | — | — | — | 24,813 | 0.8 | % | ||||||||||||
Insurance | — | 2,899 | — | — | — | 2,899 | 0.1 | % | ||||||||||||
Interactive Media & Services | 48,449 | — | — | — | — | 48,449 | 1.5 | % | ||||||||||||
IT Services | 272,793 | 31,376 | — | — | — | 304,169 | 9.2 | % | ||||||||||||
Leisure Products | 29,537 | 11,000 | — | — | — | 40,537 | 1.2 | % |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Media | $ | 98,528 | $ | 30,000 | $ | — | $ | — | $ | — | $ | 128,528 | 3.9 | % | ||||||
Paper & Forest Products | — | 11,345 | — | — | — | 11,345 | 0.3 | % | ||||||||||||
Pharmaceuticals | — | 12,000 | — | — | — | 12,000 | 0.4 | % | ||||||||||||
Professional Services | 118,965 | 69,818 | — | — | — | 188,783 | 5.7 | % | ||||||||||||
Real Estate Management & Development | 41,370 | — | — | — | — | 41,370 | 1.3 | % | ||||||||||||
Software | — | 69,302 | — | — | — | 69,302 | 2.1 | % | ||||||||||||
Technology Hardware, Storage & Peripherals | — | 12,114 | — | — | — | 12,114 | 0.4 | % | ||||||||||||
Textiles, Apparel & Luxury Goods | 271,227 | 37,000 | — | — | — | 308,227 | 9.3 | % | ||||||||||||
Tobacco | — | 14,405 | — | — | — | 14,405 | 0.4 | % | ||||||||||||
Transportation Infrastructure | — | 27,120 | — | — | — | 27,120 | 0.8 | % | ||||||||||||
Structured Finance (A) | — | — | 937,127 | — | — | 937,127 | 28.4 | % | ||||||||||||
Total Non-Control/ Non-Affiliate | $ | 1,442,933 | $ | 936,064 | $ | 937,127 | $ | — | $ | 1,819 | $ | 3,317,943 | 100.5 | % | ||||||
Fair Value % of Net Assets | 43.7 | % | 28.3 | % | 28.4 | % | — | % | 0.1 | % | 100.5 | % | ||||||||
Total Portfolio | $ | 2,697,174 | $ | 1,349,131 | $ | 937,127 | $ | 26,033 | $ | 833,105 | $ | 5,842,570 | 176.9 | % | ||||||
Fair Value % of Net Assets | 81.7 | % | 40.8 | % | 28.4 | % | 0.8 | % | 25.2 | % | 176.9 | % |
(45) | The following table shows the composition of our investment portfolio at cost by control designation, investment type and by industry as of June 30, 2018: |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Cost Total | ||||||||||||
Control Investments | ||||||||||||||||||
Aerospace & Defense | $ | 47,099 | $ | — | $ | — | $ | — | $ | 22,738 | $ | 69,837 | ||||||
Commercial Services & Supplies | 117,861 | — | — | 7,200 | 6,849 | 131,910 | ||||||||||||
Construction & Engineering | 38,211 | — | — | — | 26,204 | 64,415 | ||||||||||||
Consumer Finance | — | 337,972 | — | — | 116,839 | 454,811 | ||||||||||||
Electronic Equipment, Instruments & Components | 20,700 | — | — | — | 6,759 | 27,459 | ||||||||||||
Energy Equipment & Services | 35,048 | — | — | — | 191,812 | 226,860 | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 293,203 | — | — | — | 206,655 | 499,858 | ||||||||||||
Health Care Providers & Services | 212,701 | — | — | — | — | 212,701 | ||||||||||||
Machinery | — | 28,622 | — | — | 6,866 | 35,488 | ||||||||||||
Media | 8,614 | — | — | — | 12,869 | 21,483 | ||||||||||||
Online Lending | 226,180 | — | — | — | 100,949 | 327,129 | ||||||||||||
Personal Products | 213,575 | — | — | — | 15,000 | 228,575 | ||||||||||||
Total Control Investments | $ | 1,213,192 | $ | 366,594 | $ | — | $ | 7,200 | $ | 713,540 | $ | 2,300,526 | ||||||
Affiliate Investments | ||||||||||||||||||
Diversified Consumer Services | $ | — | $ | 7,834 | $ | — | $ | 31,348 | $ | 6,577 | $ | 45,759 | ||||||
Textiles, Apparel & Luxury Goods | — | — | — | — | 9,878 | 9,878 | ||||||||||||
Total Affiliate Investments | $ | — | $ | 7,834 | $ | — | $ | 31,348 | $ | 16,455 | $ | 55,637 | ||||||
Non-Control/Non-Affiliate Investments | ||||||||||||||||||
Auto Components | $ | — | $ | 12,681 | $ | — | $ | — | $ | — | $ | 12,681 | ||||||
Building Products | — | 9,905 | — | — | — | 9,905 |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Cost Total | ||||||||||||
Capital Markets | $ | — | $ | 19,799 | $ | — | $ | — | $ | — | $ | 19,799 | ||||||
Commercial Services & Supplies | 90,364 | 163,913 | — | — | — | 254,277 | ||||||||||||
Communications Equipment | — | 39,860 | — | — | — | 39,860 | ||||||||||||
Consumer Finance | 30,570 | — | — | — | — | 30,570 | ||||||||||||
Distributors | 343,659 | 127,091 | — | — | — | 470,750 | ||||||||||||
Diversified Consumer Services | 9,647 | 118,289 | — | — | — | 127,936 | ||||||||||||
Electronic Equipment, Instruments & Components | 12,490 | 14,856 | — | — | — | 27,346 | ||||||||||||
Energy Equipment & Services | 30,511 | — | — | — | — | 30,511 | ||||||||||||
Food Products | — | 9,884 | — | — | — | 9,884 | ||||||||||||
Health Care Equipment & Supplies | 35,815 | 7,464 | — | — | — | 43,279 | ||||||||||||
Health Care Providers & Services | 145,336 | 61,909 | — | — | 1,252 | 208,497 | ||||||||||||
Hotels, Restaurants & Leisure | 29,813 | 7,482 | — | — | — | 37,295 | ||||||||||||
Household & Personal Products | 24,938 | — | — | — | — | 24,938 | ||||||||||||
Household Durables | 16,894 | 25,645 | — | — | — | 42,539 | ||||||||||||
Insurance | — | 2,986 | — | — | — | 2,986 | ||||||||||||
Internet & Direct Marketing Retail | 4,813 | 35,000 | — | — | — | 39,813 | ||||||||||||
Internet Software & Services | 215,791 | 13,926 | — | — | — | 229,717 | ||||||||||||
IT Services | 160,588 | 21,595 | — | — | — | 182,183 | ||||||||||||
Leisure Products | 34,626 | 10,904 | — | — | 1 | 45,531 | ||||||||||||
Media | 118,605 | 2,975 | — | — | — | 121,580 | ||||||||||||
Online Lending | — | — | — | 30 | — | 30 | ||||||||||||
Paper & Forest Products | — | 11,328 | — | — | — | 11,328 | ||||||||||||
Pharmaceuticals | — | 11,882 | — | — | — | 11,882 | ||||||||||||
Professional Services | 9,468 | 64,804 | — | — | — | 74,272 | ||||||||||||
Real Estate Management & Development | 41,860 | — | — | — | — | 41,860 | ||||||||||||
Software | — | 66,435 | — | — | — | 66,435 | ||||||||||||
Technology Hardware, Storage & Peripherals | — | 12,384 | — | — | — | 12,384 | ||||||||||||
Textiles, Apparel & Luxury Goods | — | 36,551 | — | — | — | 36,551 | ||||||||||||
Tobacco | — | 14,392 | — | — | — | 14,392 | ||||||||||||
Trading Companies & Distributors | 63,863 | — | — | — | — | 63,863 | ||||||||||||
Transportation Infrastructure | — | 27,494 | — | — | — | 27,494 | ||||||||||||
Structured Finance (A) | — | — | 1,102,927 | — | — | 1,102,927 | ||||||||||||
Total Non-Control/ Non-Affiliate | $ | 1,419,651 | $ | 951,434 | $ | 1,102,927 | $ | 30 | $ | 1,253 | $ | 3,475,295 | ||||||
Total Portfolio Investment Cost | $ | 2,632,843 | $ | 1,325,862 | $ | 1,102,927 | $ | 38,578 | $ | 731,248 | $ | 5,831,458 |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Control Investments | ||||||||||||||||||||
Aerospace & Defense | $ | 47,099 | $ | — | $ | — | $ | — | $ | 35,179 | $ | 82,278 | 2.4 | % | ||||||
Commercial Services & Supplies | 67,011 | — | — | 5,563 | 2,639 | 75,213 | 2.2 | % | ||||||||||||
Construction & Engineering | 38,211 | — | — | — | 12,586 | 50,797 | 1.5 | % | ||||||||||||
Consumer Finance | — | 342,331 | — | — | 211,209 | 553,540 | 16.2 | % | ||||||||||||
Electronic Equipment, Instruments & Components | 20,700 | — | — | — | 15,056 | 35,756 | 1.1 | % | ||||||||||||
Energy Equipment & Services | 35,048 | — | — | — | 103,456 | 138,504 | 4.1 | % | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 293,203 | — | — | — | 518,712 | 811,915 | 23.8 | % | ||||||||||||
Health Care Providers & Services | 197,621 | — | — | — | — | 197,621 | 5.8 | % |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Machinery | $ | — | $ | 28,622 | $ | — | $ | — | $ | 3,264 | $ | 31,886 | 0.9 | % | ||||||
Media | 8,614 | — | — | — | 10,121 | 18,735 | 0.6 | % | ||||||||||||
Online Lending | 226,180 | — | — | — | 16,881 | 243,061 | 7.1 | % | ||||||||||||
Personal Products | $ | 165,020 | $ | — | $ | — | $ | — | $ | — | $ | 165,020 | 4.9 | % | ||||||
Total Control Investments | $ | 1,098,707 | $ | 370,953 | $ | — | $ | 5,563 | $ | 929,103 | $ | 2,404,326 | 70.6 | % | ||||||
Fair Value % of Net Assets | 32.2 | % | 10.9 | % | — | % | 0.2 | % | 27.3 | % | 70.6 | % | ||||||||
Affiliate Investments | ||||||||||||||||||||
Diversified Consumer Services | $ | — | $ | 7,834 | $ | — | $ | 27,382 | $ | — | $ | 35,216 | 1.0 | % | ||||||
Textiles, Apparel & Luxury Goods | — | — | — | 23,220 | 23,220 | 0.7 | % | |||||||||||||
Total Affiliate Investments | $ | — | $ | 7,834 | $ | — | $ | 27,382 | $ | 23,220 | $ | 58,436 | 1.7 | % | ||||||
Fair Value % of Net Assets | — | % | 0.2 | % | — | % | 0.8 | % | 0.7 | % | 1.7 | % | ||||||||
Non-Control/Non-Affiliate Investments | ||||||||||||||||||||
Auto Components | $ | — | $ | 12,887 | $ | — | $ | — | $ | — | $ | 12,887 | 0.4 | % | ||||||
Building Products | — | 10,000 | — | — | — | 10,000 | 0.3 | % | ||||||||||||
Capital Markets | — | 20,000 | — | — | — | 20,000 | 0.6 | % | ||||||||||||
Commercial Services & Supplies | 89,658 | 164,236 | — | — | 917 | 254,811 | 7.5 | % | ||||||||||||
Communications Equipment | — | 40,000 | — | — | — | 40,000 | 1.2 | % | ||||||||||||
Consumer Finance | 33,438 | — | — | — | — | 33,438 | 1.0 | % | ||||||||||||
Distributors | 343,659 | 58,806 | — | — | — | 402,465 | 11.8 | % | ||||||||||||
Diversified Consumer Services | 9,647 | 118,289 | — | — | — | 127,936 | 3.8 | % | ||||||||||||
Electronic Equipment, Instruments & Components | 12,335 | 14,873 | — | — | — | 27,208 | 0.8 | % | ||||||||||||
Energy Equipment & Services | 32,070 | — | — | — | — | 32,070 | 0.9 | % | ||||||||||||
Food Products | — | 9,886 | — | — | — | 9,886 | 0.3 | % | ||||||||||||
Health Care Equipment & Supplies | 35,815 | 7,464 | — | — | — | 43,279 | 1.3 | % | ||||||||||||
Health Care Providers & Services | 144,130 | 61,933 | — | — | 446 | 206,509 | 6.0 | % | ||||||||||||
Hotels, Restaurants & Leisure | 29,813 | 7,482 | — | — | — | 37,295 | 1.1 | % | ||||||||||||
Household & Personal Products | 24,938 | — | — | — | — | 24,938 | 0.7 | % | ||||||||||||
Household Durables | 15,728 | 25,895 | — | — | — | 41,623 | 1.2 | % | ||||||||||||
Insurance | — | 2,986 | — | — | — | 2,986 | 0.1 | % | ||||||||||||
Internet & Direct Marketing Retail | 4,813 | 35,000 | — | — | — | 39,813 | 1.2 | % | ||||||||||||
Internet Software & Services | 215,791 | 14,000 | — | — | — | 229,791 | 6.7 | % | ||||||||||||
IT Services | 160,588 | 21,990 | — | — | — | 182,578 | 5.4 | % | ||||||||||||
Leisure Products | 34,626 | 11,000 | — | — | — | 45,626 | 1.3 | % | ||||||||||||
Media | 118,655 | 2,975 | — | — | — | 121,630 | 3.6 | % | ||||||||||||
Online Lending | — | — | — | 17 | — | 17 | — | % | ||||||||||||
Paper & Forest Products | — | 11,226 | — | — | — | 11,226 | 0.3 | % | ||||||||||||
Pharmaceuticals | — | 12,000 | — | — | — | 12,000 | 0.3 | % | ||||||||||||
Professional Services | 9,608 | 67,383 | — | — | — | 76,991 | 2.3 | % | ||||||||||||
Real Estate Management & Development | 41,860 | — | — | — | — | 41,860 | 1.2 | % | ||||||||||||
Software | — | 67,265 | — | — | — | 67,265 | 2.0 | % | ||||||||||||
Technology Hardware, Storage & Peripherals | — | 12,500 | — | — | — | 12,500 | 0.4 | % | ||||||||||||
Textiles, Apparel & Luxury Goods | — | 37,000 | — | — | — | 37,000 | 1.1 | % | ||||||||||||
Tobacco | — | 14,392 | — | — | — | 14,392 | 0.4 | % | ||||||||||||
Trading Companies & Distributors | 56,199 | — | — | — | — | 56,199 | 1.6 | % | ||||||||||||
Transportation Infrastructure | — | 28,104 | — | — | — | 28,104 | 0.8 | % |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Structured Finance (A) | — | — | 960,194 | — | — | 960,194 | 28.2 | % | ||||||||||||
Total Non-Control/ Non-Affiliate | $ | 1,413,371 | $ | 889,572 | $ | 960,194 | $ | 17 | $ | 1,363 | $ | 3,264,517 | 95.8 | % | ||||||
Fair Value % of Net Assets | 41.5 | % | 26.1 | % | 28.2 | % | — | % | — | % | 95.8 | % | ||||||||
Total Portfolio | $ | 2,512,078 | $ | 1,268,359 | $ | 960,194 | $ | 32,962 | $ | 953,686 | $ | 5,727,279 | 168.1 | % | ||||||
Fair Value % of Net Assets | 73.7 | % | 37.2 | % | 28.2 | % | 1.0 | % | 28.0 | % | 168.1 | % |
(46) | The interest rate on these investments, excluding those on non-accrual, contains a paid in kind (“PIK”) provision, whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments. |
Security Name | PIK Rate - Capitalized | PIK Rate - Paid as cash | Maximum Current PIK Rate | |
CCPI Inc. | —% | 7.00% | 7.00% | |
Cinedigm DC Holdings, LLC | —% | 2.50% | 2.50% | |
Credit Central Loan Company | 10.00% | —% | 10.00% | (A) |
Echelon Transportation, LLC (f/k/a Echelon Aviation LLC) | N/A | N/A | 2.25% | (B) |
Echelon Transportation, LLC (f/k/a Echelon Aviation LLC) | N/A | N/A | 1.00% | (B) |
Edmentum Ultimate Holdings, LLC - Revolver | 5.00% | —% | 5.00% | |
Edmentum Ultimate Holdings, LLC - Senior PIK Note | 8.50% | —% | 8.50% | |
First Tower Finance Company LLC | 0.47% | 9.53% | 10.00% | |
Interdent, Inc - Senior Secured Term Loan B | 16.00% | —% | 16.00% | |
MITY, Inc. - Senior Secured Term Loan B | 10.00% | —% | 10.00% | |
National Property REIT Corp. - Senior Secured Term Loan A | N/A | N/A | 5.00% | (C) |
National Property REIT Corp. - Senior Secured Term Loan B | N/A | N/A | 5.50% | (C) |
Nationwide Loan Company LLC | 10.00% | —% | 10.00% | |
Spartan Energy Services, Inc. | 16.52% | —% | 16.52% | |
Valley Electric Co. of Mt. Vernon, Inc. | —% | 2.50% | 2.50% | |
Valley Electric Company, Inc. | —% | 10.00% | 10.00% | |
Venio LLC | 10.31% | —% | 10.31% |
Security Name | PIK Rate - Capitalized | PIK Rate - Paid as cash | Maximum Current PIK Rate | |
CCPI Inc. | —% | 7.00% | 7.00% | |
Cinedigm DC Holdings, LLC | —% | 2.50% | 2.50% | |
Credit Central Loan Company | —% | 10.00% | 10.00% | |
Echelon Transportation, LLC (f/k/a Echelon Aviation LLC) | N/A | N/A | 2.25% | (A) |
Echelon Transportation, LLC (f/k/a Echelon Aviation LLC) | N/A | N/A | 1.00% | (A) |
Edmentum Ultimate Holdings, LLC - Unsecured Senior PIK Note | 8.50% | —% | 8.50% | |
First Tower Finance Company LLC | 1.45% | 8.55% | 10.00% | |
InterDent, Inc. - Senior Secured Team Loan B | 4.25% | —% | 4.25% | |
InterDent, Inc. - Senior Secured Team Loan C | 18.00% | —% | 18.00% | |
MITY, Inc. | —% | 10.00% | 10.00% | |
National Property REIT Corp. - Senior Secured Term Loan A | —% | 10.50% | 10.50% | |
National Property REIT Corp. - Senior Secured Term Loan E | —% | 1.50% | 1.50% | |
Nationwide Loan Company LLC | —% | 10.00% | 10.00% | |
Spartan Energy Services, Inc. | 13.98% | —% | 13.98% | |
Valley Electric Co. of Mt. Vernon, Inc. | —% | 2.50% | 2.50% | |
Valley Electric Company, Inc. | 7.17% | 2.83% | 10.00% | |
Venio LLC | 10.00% | —% | 10.00% |
(47) | As defined in the 1940 Act, we are deemed to “Control” these portfolio companies because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the six months ended December 31, 2018 with these controlled investments were as follows: |
Portfolio Company | Fair Value at June 30, 2018 | Gross Additions (Cost)* | Gross Reductions (Cost)** | Net unrealized gains (losses) | Fair Value at December 31, 2018 | Interest income | Dividend income | Other income | Net realized gains (losses) | ||||||||||||||||||
CCPI, Inc. | $ | 35,756 | $ | — | $ | (337 | ) | $ | 5,863 | $ | 41,282 | $ | 1,823 | $ | — | $ | — | $ | — | ||||||||
CP Energy Services Inc. | 123,261 | — | — | 6,957 | 130,218 | 2,395 | — | — | — | ||||||||||||||||||
Credit Central Loan Company, LLC | 76,677 | 2,683 | — | (10,499 | ) | 68,861 | 6,232 | — | — | — | |||||||||||||||||
Echelon Transportation LLC | 82,278 | 3,725 | — | 5,817 | 91,820 | 3,383 | — | — | — | ||||||||||||||||||
First Tower Finance Company LLC | 443,010 | 1,582 | (2,478 | ) | 3,253 | 445,367 | 27,879 | — | — | — | |||||||||||||||||
Freedom Marine Solutions, LLC | 13,037 | 300 | — | (3,313 | ) | 10,024 | — | — | — | — | |||||||||||||||||
InterDent, Inc. | 197,621 | 27,457 | — | (3,720 | ) | 221,358 | 12,630 | — | — | — | |||||||||||||||||
MITY, Inc. | 58,894 | 1,056 | — | (7,751 | ) | 52,199 | 4,163 | — | 201 | — | |||||||||||||||||
National Property REIT Corp. | 1,054,976 | 11,582 | (36,181 | ) | (13,918 | ) | 1,016,459 | 40,352 | 20,000 | 17,859 | — | ||||||||||||||||
Nationwide Loan Company LLC | 33,853 | 444 | — | (3,030 | ) | 31,267 | 1,787 | 165 | — | — | |||||||||||||||||
NMMB, Inc. | 18,735 | — | (1,000 | ) | 6,311 | 24,046 | 583 | — | — | — | |||||||||||||||||
Pacific World Corporation | 165,020 | 5,000 | (5,250 | ) | (32,240 | ) | 132,530 | 3,253 | — | — | — | ||||||||||||||||
R-V Industries, Inc. | 31,886 | — | — | (7,216 | ) | 24,670 | 1,628 | — | — | — | |||||||||||||||||
SB Forging Company II, Inc. (f/k/a Gulf Coast Machine & Supply Company) | 2,194 | — | — | (2,194 | ) | — | — | — | — | 2,802 | |||||||||||||||||
Universal Turbine Parts, LLC *** | — | 45,129 | (162 | ) | (8,135 | ) | 36,832 | 654 | — | — | — | ||||||||||||||||
USES Corp. | 16,319 | 3,500 | — | (3,758 | ) | 16,061 | — | — | — | — | |||||||||||||||||
Valley Electric Company, Inc. | 50,797 | 5,100 | — | 33,861 | 89,758 | 3,366 | 7,500 | 472 | — | ||||||||||||||||||
Wolf Energy, LLC | 12 | 47 | 58 | (103 | ) | 14 | — | — | — | — | |||||||||||||||||
Total | $ | 2,404,326 | $ | 107,605 | $ | (45,350 | ) | $ | (33,815 | ) | $ | 2,432,766 | $ | 110,128 | $ | 27,665 | $ | 18,532 | $ | 2,802 |
(48) | As defined in the 1940 Act, we are deemed to be an “Affiliated company” of these portfolio companies because we own more than 5% of the portfolio company’s outstanding voting securities. Transactions during the six months ended December 31, 2018 with these affiliated investments were as follows: |
Portfolio Company | Fair Value at June 30, 2018 | Gross Additions (Cost)* | Gross Reductions (Cost)** | Net unrealized gains (losses) | Fair Value at December 31, 2018 | Interest income | Dividend income | Other income | Net realized gains (losses) | ||||||||||||||||||
Edmentum Ultimate Holdings, LLC | $ | 35,216 | $ | 2,123 | $ | (7,855 | ) | $ | (2,130 | ) | $ | 27,354 | $ | 401 | $ | — | $ | — | $ | — | |||||||
Nixon, Inc. | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Targus Cayman HoldCo Limited | 23,220 | — | — | (1,683 | ) | 21,537 | — | — | — | — | |||||||||||||||||
United Sporting Companies, Inc.*** | — | 58,806 | — | (15,836 | ) | 42,970 | — | — | — | — | |||||||||||||||||
Total | $ | 58,436 | $ | 60,929 | $ | (7,855 | ) | $ | (19,649 | ) | $ | 91,861 | $ | 401 | $ | — | $ | — | $ | — |
(49) | As defined in the 1940 Act, we are deemed to “Control” these portfolio companies because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended June 30, 2018 with these controlled investments were as follows: |
Portfolio Company | Fair Value at June 30, 2017 | Gross Additions (Cost)* | Gross Reductions (Cost)** | Net unrealized gains (losses) | Fair Value at June 30, 2018 | Interest income | Dividend income | Other income | Net realized gains (losses) | ||||||||||||||||||
Arctic Energy Services, LLC *** | $ | 17,370 | $ | — | $ | (60,876 | ) | $ | 43,506 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
CCPI Inc. | 43,052 | — | (482 | ) | (6,814 | ) | 35,756 | 3,704 | — | — | — | ||||||||||||||||
CP Energy Services Inc. *** | 72,216 | 65,976 | — | (14,931 | ) | 123,261 | 3,394 | — | 228 | — | |||||||||||||||||
Credit Central Loan Company, LLC | 64,435 | 2,240 | — | 10,002 | 76,677 | 12,755 | — | 903 | — | ||||||||||||||||||
Echelon Transportation, LLC (f/k/a Echelon Aviation LLC) | 71,318 | — | — | 10,960 | 82,278 | 6,360 | — | — | — | ||||||||||||||||||
Edmentum Ultimate Holdings, LLC **** | 46,895 | 5,394 | (39,196 | ) | (13,093 | ) | — | 572 | — | — | — | ||||||||||||||||
First Tower Finance Company LLC | 365,588 | 21,352 | (6,735 | ) | 62,805 | 443,010 | 47,422 | — | 2,664 | — | |||||||||||||||||
Freedom Marine Solutions, LLC | 23,994 | 982 | — | (11,939 | ) | 13,037 | — | — | — | — | |||||||||||||||||
Interdent, Inc. ***** | — | 209,120 | — | (11,499 | ) | 197,621 | 4,775 | — | — | — | |||||||||||||||||
MITY, Inc. | 76,512 | — | — | (17,618 | ) | 58,894 | 8,206 | — | 1,093 | 13 | |||||||||||||||||
National Property REIT Corp. | 987,304 | 160,769 | (124,078 | ) | 30,981 | 1,054,976 | 90,582 | 11,279 | 8,834 | — | |||||||||||||||||
Nationwide Loan Company LLC | 36,945 | 4,370 | — | (7,462 | ) | 33,853 | 3,485 | — | — | — | |||||||||||||||||
NMMB, Inc. | 20,825 | — | (1,999 | ) | (91 | ) | 18,735 | 1,455 | — | — | — | ||||||||||||||||
Pacific World Corporation ****** | — | 198,149 | (250 | ) | (32,879 | ) | 165,020 | 3,742 | — | — | — | ||||||||||||||||
R-V Industries, Inc. | 32,678 | — | — | (792 | ) | 31,886 | 3,064 | — | — | — | |||||||||||||||||
SB Forging Company II, Inc. (f/k/a Gulf Coast Machine & Supply Company) | 1,940 | — | — | 254 | 2,194 | — | — | — | — | ||||||||||||||||||
USES Corp. | 12,517 | 3,000 | (3 | ) | 805 | 16,319 | — | — | — | — | |||||||||||||||||
Valley Electric Company, Inc. | 32,509 | 2,157 | — | 16,131 | 50,797 | 5,971 | — | 138 | — | ||||||||||||||||||
Wolf Energy, LLC | 5,677 | — | (3,009 | ) | (2,656 | ) | 12 | — | — | 1,220 | — | ||||||||||||||||
Total | $ | 1,911,775 | $ | 673,509 | $ | (236,628 | ) | $ | 55,670 | $ | 2,404,326 | $ | 195,487 | $ | 11,279 | $ | 15,080 | $ | 13 |
(50) | As defined in the 1940 Act, we are deemed to be an “Affiliated company” of these portfolio companies because we own more than 5% of the portfolio company’s outstanding voting securities. Transactions during the year ended June 30, 2018 with these affiliated investments were as follows: |
Portfolio Company | Fair Value at June 30, 2017 | Gross Additions (Cost)* | Gross Reductions (Cost)** | Net unrealized gains (losses) | Fair Value at June 30, 2018 | Interest income | Dividend income | Other income | Net realized gains (losses) | ||||||||||||||||||
Edmentum Ultimate Holdings, LLC *** | $ | — | $ | 34,416 | $ | — | $ | 800 | $ | 35,216 | $ | 348 | $ | — | $ | — | $ | — | |||||||||
Nixon, Inc. | — | — | (14,197 | ) | 14,197 | — | — | — | — | (14,197 | ) | ||||||||||||||||
Targus International, LLC | 11,429 | 1,117 | — | 10,674 | 23,220 | 205 | — | — | 846 | ||||||||||||||||||
Total | $ | 11,429 | $ | 35,533 | $ | (14,197 | ) | $ | 25,671 | $ | 58,436 | $ | 553 | $ | — | $ | — | $ | (13,351 | ) |
(51) | BAART Programs, Inc. and MedMark Services, Inc. are joint borrowers of the second lien term loan. |
(52) | During the year ended June 30, 2018, Prospect exercised its rights and remedies under its loan documents to exercise the shareholder voting rights in respect of the stock of InterDent, Inc. (“InterDent”) and to appoint a new Board of Directors of InterDent. As a result, Prospect’s investment in InterDent is classified as a control investment. |
(53) | In accordance with endnote 8 of Regulation S-X Rule 12-12 - Form and Content of Schedules - Investments in securities of unaffiliated issuers, we have updated the presentation of our Consolidated Schedule of Investments to include the acquisition dates of our investments. The presentation of our Consolidated Schedule of Investments for the year ended June 30, 2018 has been similarly updated to provide comparable disclosures. |
(54) | On December 10, 2018, Prospect purchased all of the voting stock of Universal Turbine Parts, LLC (“UTP”) and appointed a new Board of Directors to UTP, including three Prospect employees. As a result of the purchase, Prospect’s investment in UTP is classified as a control investment. |
i. | fair value of investment securities, other assets and liabilities—at the spot exchange rate on the last business day of the period; and |
ii. | purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such investment transactions, income or expenses. |
1. | Each portfolio company or investment is reviewed by our investment professionals with independent valuation firms engaged by our Board of Directors. |
2. | The independent valuation firms prepare independent valuations for each investment based on their own independent assessments and issue their report. |
3. | The Audit Committee of our Board of Directors reviews and discusses with the independent valuation firms the valuation reports, and then makes a recommendation to the Board of Directors of the value for each investment. |
4. | The Board of Directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm and the Audit Committee. |
December 31, 2018 | June 30, 2018 | ||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||
Revolving Line of Credit | $ | 28,597 | $ | 28,508 | $ | 38,659 | $ | 38,559 | |||||||
Senior Secured Debt | 2,860,986 | 2,670,438 | 2,602,018 | 2,481,353 | |||||||||||
Subordinated Secured Debt | 1,437,437 | 1,347,359 | 1,318,028 | 1,260,525 | |||||||||||
Subordinated Unsecured Debt | 38,879 | 26,033 | 38,548 | 32,945 | |||||||||||
Small Business Loans | — | — | 30 | 17 | |||||||||||
CLO Debt | 44,783 | 47,636 | 6,159 | 6,159 | |||||||||||
CLO Residual Interest | 1,097,830 | 889,491 | 1,096,768 | 954,035 | |||||||||||
Equity | 587,884 | 833,105 | 731,248 | 953,686 | |||||||||||
Total Investments | $ | 6,096,396 | $ | 5,842,570 | $ | 5,831,458 | $ | 5,727,279 |
• | Revolving Line of Credit includes our investments in delayed draw term loans. |
• | Senior Secured Debt includes investments listed on the SOI such as senior secured term loans, senior term loans, secured promissory notes, senior demand notes, and first lien term loans. |
• | Subordinated Secured Debt includes investments listed on the SOI such as subordinated secured term loans, subordinated term loans, senior subordinated notes, and second lien term loans. |
• | Subordinated Unsecured Debt includes investments listed on the SOI such as subordinated unsecured notes and senior unsecured notes. |
• | Small Business Loans includes our investments in SME whole loans purchased from OnDeck. |
• | CLO Debt includes our investment in the “debt” class of security of CLO funds. |
• | CLO Residual Interest includes our investments in the “equity” security class of CLO funds such as income notes, preference shares, and subordinated notes. |
• | Equity, unless specifically stated otherwise, includes our investments in preferred stock, common stock, membership interests, net profits interests, net operating income interests, net revenue interests, overriding royalty interests, escrows receivable, and warrants. |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Revolving Line of Credit | $ | — | $ | — | $ | 28,508 | $ | 28,508 | |||||||
Senior Secured Debt | — | — | 2,670,438 | 2,670,438 | |||||||||||
Subordinated Secured Debt | — | — | 1,347,359 | 1,347,359 | |||||||||||
Subordinated Unsecured Debt | — | — | 26,033 | 26,033 | |||||||||||
CLO Debt | — | — | 47,636 | 47,636 | |||||||||||
CLO Residual Interest | — | — | 889,491 | 889,491 | |||||||||||
Equity | — | — | 833,105 | 833,105 | |||||||||||
Total Investments | $ | — | $ | — | $ | 5,842,570 | $ | 5,842,570 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Revolving Line of Credit | $ | — | $ | — | $ | 38,559 | $ | 38,559 | |||||||
Senior Secured Debt | — | — | 2,481,353 | 2,481,353 | |||||||||||
Subordinated Secured Debt | — | — | 1,260,525 | 1,260,525 | |||||||||||
Subordinated Unsecured Debt | — | — | 32,945 | 32,945 | |||||||||||
Small Business Loans | — | — | 17 | 17 | |||||||||||
CLO Debt | — | — | 6,159 | 6,159 | |||||||||||
CLO Residual Interest | — | — | 954,035 | 954,035 | |||||||||||
Equity | — | — | 953,686 | 953,686 | |||||||||||
Total Investments | $ | — | $ | — | $ | 5,727,279 | $ | 5,727,279 |
Fair Value Measurements Using Unobservable Inputs (Level 3) | |||||||||||||||
Control Investments | Affiliate Investments | Non-Control/ Non-Affiliate Investments | Total | ||||||||||||
Fair value as of June 30, 2018 | $ | 2,404,326 | $ | 58,436 | $ | 3,264,517 | $ | 5,727,279 | |||||||
Net realized gains on investments | 2,802 | — | 48 | 2,850 | |||||||||||
Net change in unrealized gains (losses)(1) | (33,815 | ) | (19,649 | ) | (96,183 | ) | (149,647 | ) | |||||||
Net realized and unrealized gains (losses) | (31,013 | ) | (19,649 | ) | (96,135 | ) | (146,797 | ) | |||||||
Purchases of portfolio investments | 46,129 | 1,567 | 413,892 | 461,588 | |||||||||||
Payment-in-kind interest | 15,440 | 556 | 3,310 | 19,306 | |||||||||||
Accretion (amortization) of discounts and premiums, net | 907 | — | (787 | ) | 120 | ||||||||||
Repayments and sales of portfolio investments | (48,152 | ) | (7,855 | ) | (162,919 | ) | (218,926 | ) | |||||||
Transfers within Level 3(1) | 45,129 | 58,806 | (103,935 | ) | — | ||||||||||
Transfers in (out) of Level 3(1) | — | — | — | — | |||||||||||
Fair value as of December 31, 2018 | $ | 2,432,766 | $ | 91,861 | $ | 3,317,943 | $ | 5,842,570 |
Revolving Line of Credit | Senior Secured Debt | Subordinated Secured Debt | Subordinated Unsecured Debt | Small Business Loans | CLO Debt | CLO Residual Interest | Equity | Total | |||||||||||||||||||||||||||
Fair value as of June 30, 2018 | $ | 38,559 | $ | 2,481,353 | $ | 1,260,525 | $ | 32,945 | $ | 17 | $ | 6,159 | $ | 954,035 | $ | 953,686 | $ | 5,727,279 | |||||||||||||||||
Net realized gains on investments | — | — | — | — | 22 | — | — | 2,828 | 2,850 | ||||||||||||||||||||||||||
Net change in unrealized gains (losses)(1) | 10 | (69,884 | ) | (32,575 | ) | (7,243 | ) | 13 | 2,853 | (65,606 | ) | 22,785 | (149,647 | ) | |||||||||||||||||||||
Net realized and unrealized (losses) gains | 10 | (69,884 | ) | (32,575 | ) | (7,243 | ) | 35 | 2,853 | (65,606 | ) | 25,613 | (146,797 | ) | |||||||||||||||||||||
Purchases of portfolio investments | 6,568 | 335,751 | 202,283 | — | — | 38,524 | 6,887 | (128,425 | ) | 461,588 | |||||||||||||||||||||||||
Payment-in-kind interest | 226 | 13,233 | 5,516 | 331 | — | — | — | — | 19,306 | ||||||||||||||||||||||||||
Accretion (amortization) of discounts and premiums, net | — | 2,324 | 3,521 | — | — | 100 | (5,825 | ) | — | 120 | |||||||||||||||||||||||||
Repayments and sales of portfolio investments | (16,855 | ) | (92,339 | ) | (91,911 | ) | — | (52 | ) | — | — | (17,769 | ) | (218,926 | ) | ||||||||||||||||||||
Transfers within Level 3(1) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers in (out) of Level 3(1) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Fair value as of December 31, 2018 | $ | 28,508 | $ | 2,670,438 | $ | 1,347,359 | $ | 26,033 | $ | — | $ | 47,636 | $ | 889,491 | $ | 833,105 | $ | 5,842,570 |
(1) | Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. |
Fair Value Measurements Using Unobservable Inputs (Level 3) | |||||||||||||||
Control Investments | Affiliate Investments | Non-Control/ Non-Affiliate Investments | Total | ||||||||||||
Fair value as of June 30, 2017 | $ | 1,911,775 | $ | 11,429 | $ | 3,915,101 | $ | 5,838,305 | |||||||
Net realized gains on investments | 11 | 846 | (5,774 | ) | (4,917 | ) | |||||||||
Net change in unrealized gains (losses) | 45,518 | 6,726 | (50,300 | ) | 1,944 | ||||||||||
Net realized and unrealized gains (losses) | 45,529 | 7,572 | (56,074 | ) | (2,973 | ) | |||||||||
Purchases of portfolio investments | 103,567 | 846 | 852,495 | 956,908 | |||||||||||
Payment-in-kind interest | 3,345 | 271 | 364 | 3,980 | |||||||||||
Accretion (amortization) of discounts and premiums, net | 940 | — | (23,547 | ) | (22,607 | ) | |||||||||
Repayments and sales of portfolio investments | (53,234 | ) | (846 | ) | (1,298,401 | ) | (1,352,481 | ) | |||||||
Transfers within Level 3(1) | — | — | — | — | |||||||||||
Transfers in (out) of Level 3(1) | — | — | — | — | |||||||||||
Fair value as of December 31, 2017 | $ | 2,011,922 | $ | 19,272 | $ | 3,389,938 | $ | 5,421,132 |
Revolving Line of Credit | Senior Secured Debt | Subordinated Secured Debt | Subordinated Unsecured Debt | Small Business Loans | CLO Residual Interest | Equity | Total | ||||||||||||||||||||||||
Fair value as of June 30, 2017 | $ | 27,409 | $ | 2,798,796 | $ | 1,107,040 | $ | 44,434 | $ | 7,964 | $ | 1,079,712 | $ | 772,950 | $ | 5,838,305 | |||||||||||||||
Net realized gains (losses) on investments | — | (2,174 | ) | — | 10 | (297 | ) | (2,494 | ) | 38 | (4,917 | ) | |||||||||||||||||||
Net change in unrealized gains (losses) | (221 | ) | 25,703 | (26,197 | ) | (12,685 | ) | 351 | (56,802 | ) | 71,795 | 1,944 | |||||||||||||||||||
Net realized and unrealized (losses) gains | (221 | ) | 23,529 | (26,197 | ) | (12,675 | ) | 54 | (59,296 | ) | 71,833 | (2,973 | ) | ||||||||||||||||||
Purchases of portfolio investments | 14,967 | 710,078 | 177,830 | — | 7,551 | — | 46,482 | 956,908 | |||||||||||||||||||||||
Payment-in-kind interest | — | 2,511 | 1,166 | 303 | — | — | — | 3,980 | |||||||||||||||||||||||
Accretion (amortization) of discounts and premiums, net | — | 1,312 | 2,718 | — | — | (26,637 | ) | — | (22,607 | ) | |||||||||||||||||||||
Repayments and sales of portfolio investments | (8,059 | ) | (1,148,359 | ) | (108,681 | ) | (10 | ) | (14,204 | ) | (53,503 | ) | (19,665 | ) | (1,352,481 | ) | |||||||||||||||
Transfers within Level 3(1) | — | (6,128 | ) | — | — | — | — | 6,128 | — | ||||||||||||||||||||||
Transfers in (out) of Level 3(1) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Fair value as of December 31, 2017 | $ | 34,096 | $ | 2,381,739 | $ | 1,153,876 | $ | 32,052 | $ | 1,365 | $ | 940,276 | $ | 877,728 | $ | 5,421,132 |
(1) | Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. |
Unobservable Input | ||||||||||||
Asset Category | Fair Value | Primary Valuation Approach or Technique | Input | Range | Weighted Average | |||||||
Senior Secured Debt | $ | 1,440,663 | Discounted Cash Flow (Yield analysis) | Market yield | 7.2% - 22.6% | 11.5% | ||||||
Senior Secured Debt | 419,546 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 4.0x - 9.5x | 8.0x | |||||||
Senior Secured Debt | 148,591 | Enterprise Value Waterfall (Market approach) | Revenue multiple | 0.3x - 1.4x | 1.1x | |||||||
Senior Secured Debt | 50,823 | Enterprise Value Waterfall (Discounted cash flow) | Discount rate | 7.3% - 15.9% | 10.5% | |||||||
Senior Secured Debt | 770 | Liquidation Analysis | N/A | N/A | N/A | |||||||
Senior Secured Debt (1) | 205,000 | Enterprise Value Waterfall | Loss-adjusted discount rate | 3.0% - 13.6% | 10.9% | |||||||
Senior Secured Debt (2) | 433,553 | Enterprise Value Waterfall (NAV Analysis) | Capitalization Rate | 3.4% - 8.1% | 6.5% | |||||||
Senior Secured Debt (2) | Discounted Cash Flow | Discount rate | 6.5% - 7.5% | 7.0% | ||||||||
Subordinated Secured Debt | 936,064 | Discounted Cash Flow (Yield analysis) | Market yield | 9.3% - 23.2% | 12.2% | |||||||
Subordinated Secured Debt | 24,670 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 7.8x - 8.8x | 8.3x | |||||||
Subordinated Secured Debt | 42,970 | Enterprise Value Waterfall (Market approach) | Revenue multiple | 0.2x - 0.3x | 0.3x | |||||||
Subordinated Secured Debt (3) | 343,655 | Enterprise Value Waterfall (Market approach) | Book value multiple | 0.8x - 2.9x | 2.5x | |||||||
Subordinated Secured Debt (3) | Enterprise Value Waterfall (Market approach) | Earnings multiple | 7.5x - 12.0x | 10.9x | ||||||||
Subordinated Unsecured Debt | 26,033 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 5.8x - 11.5x | 10.4x | |||||||
CLO Debt | 47,636 | Discounted Cash Flow | Discount rate (5) | 11.4% - 12.4% | 12.1% | |||||||
CLO Residual Interest | 889,491 | Discounted Cash Flow | Discount rate (5) | 2.6% - 24.8% | 19.2% | |||||||
Preferred Equity | 80,525 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 4.0x - 8.5x | 7.3x | |||||||
Preferred Equity | Liquidation Analysis | EBITDA multiple | 1.1x - 1.4x | 1.3x | ||||||||
Common Equity/Interests/Warrants | 120,848 | Enterprise value waterfall (Market approach) | EBITDA multiple | 5.3x - 8.8x | 6.8x | |||||||
Common Equity/Interests/Warrants (1) | 5,707 | Enterprise value waterfall | Loss-adjusted discount rate | 3.0% - 13.6% | 10.9% | |||||||
Common Equity/Interests/Warrants (2) | 277,723 | Enterprise value waterfall (NAV analysis) | Capitalization Rate | 3.4% - 8.1% | 6.3% | |||||||
Common Equity/Interests/Warrants (2) | Discounted cash flow | Discount rate | 6.5% - 7.5% | 7.0% | ||||||||
Common Equity/Interests/Warrants (3) | 200,902 | Enterprise value waterfall (Market approach) | Book value multiple | 0.8x - 2.9x | 2.4x | |||||||
Common Equity/Interests/Warrants (3) | Enterprise value waterfall (Market approach) | Earnings multiple | 7.5x - 12.0x | 11.1x | ||||||||
Common Equity/Interests/Warrants (4) | 94,476 | Discounted cash flow | Discount rate | 6.5% - 7.5% | 7.0% | |||||||
Common Equity/Interests/Warrants | 41,935 | Discounted cash flow | Discount rate | 7.3% - 15.5% | 8.4% | |||||||
Common Equity/Interests/Warrants | 10,038 | Liquidation analysis | N/A | N/A | N/A | |||||||
Escrow Receivable | 951 | Discounted cash flow | Discount rate | 7.0% - 8.1% | 7.6% | |||||||
Total Level 3 Investments | $ | 5,842,570 |
(1) | Represents an investment in a Real Estate Investment subsidiary. The Enterprise Value analysis includes the fair value of our investments in such indirect subsidiary’s consumer loans purchased from online consumer lending platforms, which are valued using a discounted cash flow valuation technique. The key unobservable input to the discounted cash flow analysis is noted above. In addition, the valuation also used projected loss rates as an unobservable input ranging from 0.0%-15.6%, with a weighted average of 2.6%. |
(2) | Represents Real Estate Investments. Enterprise Value Waterfall methodology uses both the net asset value analysis and discounted cash flow technique, which are weighted equally (50%). |
(3) | Represents investments in consumer finance subsidiaries. The enterprise value waterfall methodology utilizes book value and earnings multiples, as noted above. In addition, the valuation of certain consumer finance companies utilizes the discounted cash flow technique whereby the significant unobservable input is the discount rate. For these companies the discount rate ranged from 14.0% to 16.0% with a weighted average of 14.7%. |
(4) | Represents net operating income interests in Real Estate Investments. |
(5) | Represents the implied discount rate based on our internally generated single-cash flow model that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm. |
Unobservable Input | ||||||||||||
Asset Category | Fair Value | Primary Valuation Approach or Technique | Input | Range | Weighted Average | |||||||
Senior Secured Debt | $ | 1,409,584 | Discounted Cash Flow (Yield analysis) | Market yield | 7.0% - 21.2% | 11.3% | ||||||
Senior Secured Debt | 361,720 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 4.0x - 10.3x | 8.3x | |||||||
Senior Secured Debt | 181,339 | Enterprise Value Waterfall (Market approach) | Revenue multiple | 0.3x - 1.6x | 1.4x | |||||||
Senior Secured Debt | 47,099 | Enterprise Value Waterfall (Discounted cash flow) | Discount rate | 7.5% - 16.1% | 10.7% | |||||||
Senior Secured Debt | 787 | Liquidation Analysis | N/A | N/A | N/A | |||||||
Senior Secured Debt (1) | 226,180 | Enterprise Value Waterfall | Loss-adjusted discount rate | 3.0% - 14.2% | 11.0% | |||||||
Senior Secured Debt (2) | 293,203 | Enterprise Value Waterfall (NAV Analysis) | Capitalization Rate | 3.3% - 8.7% | 6.0% | |||||||
Senior Secured Debt (2) | Discounted Cash Flow | Discount rate | 6.5% - 7.5% | 7.0% | ||||||||
Subordinated Secured Debt | 830,766 | Discounted Cash Flow (Yield analysis) | Market yield | 7.6% - 22.5% | 11.7% | |||||||
Subordinated Secured Debt | 28,622 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 6.5x - 7.5x | 7.0x | |||||||
Subordinated Secured Debt | 58,806 | Enterprise Value Waterfall (Market approach) | Revenue multiple | 0.3x - 0.4x | 0.4x | |||||||
Subordinated Secured Debt (3) | 342,331 | Enterprise Value Waterfall (Market approach) | Book value multiple | 0.8x - 3.1x | 2.5x | |||||||
Subordinated Secured Debt (3) | Enterprise Value Waterfall (Market approach) | Earnings multiple | 7.5x - 13.0x | 11.9x | ||||||||
Subordinated Unsecured Debt | 32,945 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 5.8x - 11.5x | 9.7% | |||||||
Small Business Loans (4) | 17 | Discounted Cash Flow | Loss-adjusted discount rate | 13.0% - 24.3% | 15.5% | |||||||
CLO Interests | 960,194 | Discounted Cash Flow | Discount rate (6) | 2.33% - 24.28% | 17.24% | |||||||
Preferred Equity | 73,792 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 4.0x - 9.0x | 7.9x | |||||||
Preferred Equity | 2,194 | Liquidation Analysis | N/A | N/A | N/A | |||||||
Common Equity/Interests/Warrants | 81,753 | Enterprise value waterfall (Market approach) | EBITDA multiple | 5.0x - 9.0x | 6.8x | |||||||
Common Equity/Interests/Warrants (1) | 16,881 | Enterprise value waterfall | Loss-adjusted discount rate | 3.0% - 14.2% | 11.0% | |||||||
Common Equity/Interests/Warrants (2) | 419,224 | Enterprise value waterfall (NAV analysis) | Capitalization Rate | 3.3% - 8.7% | 6.0% | |||||||
Common Equity/Interests/Warrants (2) | Discounted cash flow | Discount rate | 6.5% - 7.5% | 7.0% | ||||||||
Common Equity/Interests/Warrants (3) | 209,583 | Enterprise value waterfall (Market approach) | Book value multiple | 0.8x - 3.1x | 2.4x | |||||||
Common Equity/Interests/Warrants (3) | Enterprise value waterfall (Market approach) | Earnings multiple | 7.5x - 13.0x | 11.9x | ||||||||
Common Equity/Interests/Warrants (5) | 99,488 | Discounted cash flow | Discount rate | 6.5% - 7.5% | 7.0% | |||||||
Common Equity/Interests/Warrants | 36,805 | Discounted cash flow | Discount rate | 7.5% - 15.5% | 8.8% | |||||||
Common Equity/Interests/Warrants | 13,049 | Liquidation analysis | N/A | N/A | N/A | |||||||
Escrow Receivable | 917 | Discounted cash flow | Discount rate | 7.3% - 8.4% | 7.9% | |||||||
Total Level 3 Investments | $ | 5,727,279 |
(1) | Represents an investment in a Real Estate Investment subsidiary. The Enterprise Value analysis includes the fair value of our investments in such indirect subsidiary’s consumer loans purchased from online consumer lending platforms, which are valued using a discounted cash flow valuation technique. The key unobservable input to the discounted cash flow analysis is noted above. In addition, the valuation also used projected loss rates as an unobservable input ranging from 0.0%-20.7%, with a weighted average of 4.2%. |
(2) | Represents our REIT investments. EV waterfall methodology uses both the net asset value analysis and discounted cash flow technique, which are weighted equally (50%). |
(3) | Represents investments in consumer finance subsidiaries. The enterprise value waterfall methodology utilizes book value and earnings multiples, as noted above. In addition, the valuation of certain consumer finance companies utilizes the discounted cash flow technique whereby the significant unobservable input is the discount rate. For these companies, each valuation technique (book value multiple, earnings multiple, and discount rate) is weighted equally. For these companies the discount rate ranged from 13.5% to 15.5% with a weighted average of 14.2%. |
(4) | Includes our investments in small business whole loans purchased from OnDeck. Valuation also used projected loss rates as an unobservable input ranging from 0.00%-0.06%, with a weighted average of 0.01%. |
(5) | Represents net operating income interests in our REIT investments. |
(6) | Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm. |
Loan Type | Outstanding Principal Balance | Fair Value | Interest Rate Range | Weighted Average Interest Rate* | ||||||||
Super Prime | $ | 14,681 | $ | 14,254 | 4.0% - 24.1% | 12.5% | ||||||
Prime | 40,595 | 38,015 | 4.0% - 36.0% | 17.2% | ||||||||
Near Prime | 140,988 | 128,809 | 6.0% - 36.0% | 26.8% |
No. | Property Name | City | Acquisition Date | Purchase Price | Mortgage Outstanding | |||||||||
1 | Filet of Chicken | Forest Park, GA | 10/24/2012 | $ | 7,400 | $ | — | |||||||
2 | Lofton Place, LLC | Tampa, FL | 4/30/2013 | 26,000 | 20,102 | |||||||||
3 | Arlington Park Marietta, LLC | Marietta, GA | 5/8/2013 | 14,850 | 9,570 | |||||||||
4 | NPRC Carroll Resort, LLC | Pembroke Pines, FL | 6/24/2013 | 225,000 | 174,302 | |||||||||
5 | Cordova Regency, LLC | Pensacola, FL | 11/15/2013 | 13,750 | 11,375 | |||||||||
6 | Crestview at Oakleigh, LLC | Pensacola, FL | 11/15/2013 | 17,500 | 13,845 | |||||||||
7 | Inverness Lakes, LLC | Mobile, AL | 11/15/2013 | 29,600 | 24,700 | |||||||||
8 | Kings Mill Pensacola, LLC | Pensacola, FL | 11/15/2013 | 20,750 | 17,550 | |||||||||
9 | Plantations at Pine Lake, LLC | Tallahassee, FL | 11/15/2013 | 18,000 | 14,092 | |||||||||
10 | Verandas at Rocky Ridge, LLC | Birmingham, AL | 11/15/2013 | 15,600 | 10,205 | |||||||||
11 | Vinings Corner II, LLC | Smyrna, GA | 11/19/2013 | 35,691 | 32,395 | |||||||||
12 | Atlanta Eastwood Village LLC | Stockbridge, GA | 12/12/2013 | 25,957 | 22,361 | |||||||||
13 | Atlanta Monterey Village LLC | Jonesboro, GA | 12/12/2013 | 11,501 | 10,879 | |||||||||
14 | Atlanta Hidden Creek LLC | Morrow, GA | 12/12/2013 | 5,098 | 4,658 | |||||||||
15 | Atlanta Meadow Springs LLC | College Park, GA | 12/12/2013 | 13,116 | 12,808 | |||||||||
16 | Atlanta Meadow View LLC | College Park, GA | 12/12/2013 | 14,354 | 12,862 | |||||||||
17 | Atlanta Peachtree Landing LLC | Fairburn, GA | 12/12/2013 | 17,224 | 15,235 | |||||||||
18 | NPH Carroll Bartram Park, LLC | Jacksonville, FL | 12/31/2013 | 38,000 | 26,909 | |||||||||
19 | Crestview at Cordova, LLC | Pensacola, FL | 1/17/2014 | 8,500 | 7,695 | |||||||||
20 | Taco Bell, OK | Yukon, OK | 6/4/2014 | 1,719 | — | |||||||||
21 | Taco Bell, MO | Marshall, MO | 6/4/2014 | 1,405 | — | |||||||||
22 | 23 Mile Road Self Storage, LLC | Chesterfield, MI | 8/19/2014 | 5,804 | 4,350 | |||||||||
23 | 36th Street Self Storage, LLC | Wyoming, MI | 8/19/2014 | 4,800 | 3,600 | |||||||||
24 | Ball Avenue Self Storage, LLC | Grand Rapids, MI | 8/19/2014 | 7,281 | 5,460 | |||||||||
25 | Ford Road Self Storage, LLC | Westland, MI | 8/29/2014 | 4,642 | 3,480 | |||||||||
26 | Ann Arbor Kalamazoo Self Storage, LLC | Ann Arbor, MI | 8/29/2014 | 4,458 | 3,345 | |||||||||
27 | Ann Arbor Kalamazoo Self Storage, LLC | Ann Arbor, MI | 8/29/2014 | 8,927 | 6,695 | |||||||||
28 | Ann Arbor Kalamazoo Self Storage, LLC | Kalamazoo, MI | 8/29/2014 | 2,363 | 1,775 |
No. | Property Name | City | Acquisition Date | Purchase Price | Mortgage Outstanding | |||||||||
29 | Canterbury Green Apartments Holdings LLC | Fort Wayne, IN | 9/29/2014 | 85,500 | 86,580 | |||||||||
30 | Abbie Lakes OH Partners, LLC | Canal Winchester, OH | 9/30/2014 | 12,600 | 14,233 | |||||||||
31 | Kengary Way OH Partners, LLC | Reynoldsburg, OH | 9/30/2014 | 11,500 | 15,935 | |||||||||
32 | Lakeview Trail OH Partners, LLC | Canal Winchester, OH | 9/30/2014 | 26,500 | 28,969 | |||||||||
33 | Lakepoint OH Partners, LLC | Pickerington, OH | 9/30/2014 | 11,000 | 14,480 | |||||||||
34 | Sunbury OH Partners, LLC | Columbus, OH | 9/30/2014 | 13,000 | 15,359 | |||||||||
35 | Heatherbridge OH Partners, LLC | Blacklick, OH | 9/30/2014 | 18,416 | 18,328 | |||||||||
36 | Jefferson Chase OH Partners, LLC | Blacklick, OH | 9/30/2014 | 13,551 | 19,493 | |||||||||
37 | Goldenstrand OH Partners, LLC | Hilliard, OH | 10/29/2014 | 7,810 | 11,893 | |||||||||
38 | Jolly Road Self Storage, LLC | Okemos, MI | 1/16/2015 | 7,492 | 5,620 | |||||||||
39 | Eaton Rapids Road Self Storage, LLC | Lansing West, MI | 1/16/2015 | 1,741 | 1,305 | |||||||||
40 | Haggerty Road Self Storage, LLC | Novi, MI | 1/16/2015 | 6,700 | 5,025 | |||||||||
41 | Waldon Road Self Storage, LLC | Lake Orion, MI | 1/16/2015 | 6,965 | 5,225 | |||||||||
42 | Tyler Road Self Storage, LLC | Ypsilanti, MI | 1/16/2015 | 3,507 | 2,630 | |||||||||
43 | SSIL I, LLC | Aurora, IL | 11/5/2015 | 34,500 | 26,450 | |||||||||
44 | Vesper Tuscaloosa, LLC | Tuscaloosa, AL | 9/28/2016 | 54,500 | 43,109 | |||||||||
45 | Vesper Iowa City, LLC | Iowa City, IA | 9/28/2016 | 32,750 | 24,825 | |||||||||
46 | Vesper Corpus Christi, LLC | Corpus Christi, TX | 9/28/2016 | 14,250 | 10,800 | |||||||||
47 | Vesper Campus Quarters, LLC | Corpus Christi, TX | 9/28/2016 | 18,350 | 14,175 | |||||||||
48 | Vesper College Station, LLC | College Station, TX | 9/28/2016 | 41,500 | 32,058 | |||||||||
49 | Vesper Kennesaw, LLC | Kennesaw, GA | 9/28/2016 | 57,900 | 48,647 | |||||||||
50 | Vesper Statesboro, LLC | Statesboro, GA | 9/28/2016 | 7,500 | 7,480 | |||||||||
51 | Vesper Manhattan KS, LLC | Manhattan, KS | 9/28/2016 | 23,250 | 15,415 | |||||||||
52 | JSIP Union Place, LLC | Franklin, MA | 12/7/2016 | 64,750 | 51,800 | |||||||||
53 | 9220 Old Lantern Way, LLC | Laurel, MD | 1/30/2017 | 187,250 | 153,580 | |||||||||
54 | 7915 Baymeadows Circle Owner, LLC | Jacksonville, FL | 10/31/2017 | 95,700 | 76,560 | |||||||||
55 | 8025 Baymeadows Circle Owner, LLC | Jacksonville, FL | 10/31/2017 | 15,300 | 12,240 | |||||||||
56 | 23275 Riverside Drive Owner, LLC | Southfield, MI | 11/8/2017 | 52,000 | 44,044 | |||||||||
57 | 23741 Pond Road Owner, LLC | Southfield, MI | 11/8/2017 | 16,500 | 14,185 | |||||||||
58 | 150 Steeplechase Way Owner, LLC | Largo, MD | 1/10/2018 | 44,500 | 36,668 | |||||||||
59 | Laurel Pointe Holdings, LLC | Forest Park, GA | 5/9/2018 | 33,005 | 26,400 | |||||||||
60 | Bradford Ridge Holdings, LLC | Forest Park, GA | 5/9/2018 | 12,500 | 10,000 | |||||||||
61 | Olentangy Commons Owner LLC | Columbus, OH | 6/1/2018 | 113,000 | 92,876 | |||||||||
62 | Villages of Wildwood Holdings LLC | Fairfield, OH | 7/20/2018 | 46,500 | 39,525 | |||||||||
63 | Falling Creek Holdings LLC | Richmond, VA | 8/8/2018 | 25,000 | 19,335 | |||||||||
64 | Crown Pointe Passthrough LLC | Danbury, CT | 8/30/2018 | 108,500 | 89,400 | |||||||||
65 | Ashwood Ridge Holdings LLC | Jonesboro, GA | 9/21/2018 | 9,600 | 7,300 | |||||||||
66 | Lorring Owner LLC | Forestville, MD | 10/30/2018 | 58,521 | 47,680 | |||||||||
$ | 1,992,698 | $ | 1,659,875 |
Asset Test | Income Test | Investment Test | ||||
Greater than 10% but Less than 20% | Greater than 20% | Greater than 10% but Less than 20% | Greater than 20% | Greater than 10% but Less than 20% | Greater than 20% | |
Six Months Ended December 31, 2018 | N/A | NPRC | N/A | CCPI Inc., CP Energy, Credit Central Loan Company, LLC, Echelon Transportation, LLC, First Tower Finance Company, LLC, InterDent, NMMB, Inc., NPRC, Pacific World Corporation, R-V Industries, Inc., UTP, and Valley Electric Company, Inc. | NPRC | - |
Year Ended June 30, 2018 | - | NPRC | Arctic (1) | First Tower Finance NPRC | NPRC | - |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 9,486 | $ | 8,391 | $ | 18,529 | $ | 15,921 | |||||||
Total expenses | 10,260 | 8,136 | 19,751 | 16,109 | |||||||||||
Net income (loss) | $ | (774 | ) | $ | 255 | $ | (1,222 | ) | $ | (188 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Summary of Operations | |||||||||||
Total revenue | 13,595 | 16,586 | 33,982 | 30,070 | |||||||
Total expenses | 20,150 | 21,243 | 43,227 | 36,371 | |||||||
Net income (loss) | (6,555 | ) | (4,657 | ) | (9,245 | ) | (6,301 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 19,907 | $ | 19,895 | $ | 38,802 | $ | 39,432 | |||||||
Total expenses | 18,033 | 17,878 | 35,089 | 35,213 | |||||||||||
Net income (loss) | $ | 1,874 | $ | 2,017 | $ | 3,713 | $ | 4,219 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 1,456 | $ | 3,675 | $ | 2,919 | $ | 6,794 | |||||||
Total expenses | 2,344 | 3,521 | 4,910 | 5,231 | |||||||||||
Fair value adjustment | 1,730 | 5,503 | 6,769 | 4,580 | |||||||||||
Net income (loss) | $ | 842 | $ | 5,657 | $ | 4,778 | $ | 6,143 |
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 65,544 | $ | 57,186 | $ | 131,294 | $ | 114,415 | |||||||
Total expenses | 69,389 | 57,542 | 137,214 | 116,211 | |||||||||||
Net income (loss) | $ | (3,845 | ) | $ | (356 | ) | $ | (5,920 | ) | $ | (1,796 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 73,336 | $ | 81,339 | $ | 152,949 | $ | 163,089 | |||||||
Total expenses | 88,776 | 92,138 | 178,185 | 182,822 | |||||||||||
Net income (loss) | $ | (15,440 | ) | $ | (10,799 | ) | $ | (25,236 | ) | $ | (19,733 | ) |
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 11,259 | $ | 8,543 | $ | 18,409 | $ | 14,395 | |||||||
Total expenses | 9,805 | 7,773 | 16,889 | 14,271 | |||||||||||
Net income (loss) | $ | 1,454 | $ | 770 | $ | 1,520 | $ | 124 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 168,614 | $ | 99,458 | $ | 269,258 | $ | 198,343 | |||||||
Total expenses | 101,507 | 85,292 | 184,577 | 167,470 | |||||||||||
Operating income | 67,107 | 14,166 | 84,681 | 30,873 | |||||||||||
Depreciation and amortization | (22,901 | ) | (16,502 | ) | (41,099 | ) | (35,602 | ) | |||||||
Fair value adjustment | (11,641 | ) | (29,441 | ) | (19,720 | ) | (60,255 | ) | |||||||
Net income (loss) | $ | 32,565 | $ | (31,777 | ) | $ | 23,862 | $ | (64,984 | ) |
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 31,043 | $ | 32,114 | $ | 62,656 | $ | 69,850 | |||||||
Total expenses | 60,582 | 41,437 | 105,876 | 83,511 | |||||||||||
Net income (loss) | $ | (29,539 | ) | $ | (9,323 | ) | $ | (43,220 | ) | $ | (13,661 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 12,000 | $ | 12,339 | $ | 23,061 | $ | 23,769 | |||||||
Total expenses | 12,146 | 12,819 | 23,836 | 24,439 | |||||||||||
Net income (loss) | $ | (146 | ) | $ | (480 | ) | $ | (775 | ) | $ | (670 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 10,871 | $ | 15,323 | $ | 23,767 | $ | 31,816 | |||||||
Total expenses | 14,543 | 18,577 | 31,108 | 37,326 | |||||||||||
Net income (loss) | $ | (3,672 | ) | $ | (3,254 | ) | $ | (7,341 | ) | $ | (5,510 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Summary of Operations | |||||||||||||||
Total revenue | $ | 60,788 | $ | 34,766 | $ | 114,268 | $ | 67,631 | |||||||
Total expenses | 55,422 | 36,900 | 101,313 | 68,640 | |||||||||||
Net income (loss) | $ | 5,366 | $ | (2,134 | ) | $ | 12,955 | $ | (1,009 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Average stated interest rate | 4.50 | % | 3.55 | % | 4.43 | % | 3.55 | % | |||
Average outstanding balance | $308,424 | $66,437 | $237,283 | $33,219 |
2019 Notes | 2020 Notes | 2022 Notes | ||||||||||
Initial conversion rate(1) | 79.7766 | 80.6647 | 100.2305 | |||||||||
Initial conversion price | $ | 12.54 | $ | 12.40 | $ | 9.98 | ||||||
Conversion rate at December 31, 2018(1)(2) | 79.8360 | 80.6670 | 100.2305 | |||||||||
Conversion price at December 31, 2018(2)(3) | $ | 12.53 | $ | 12.40 | $ | 9.98 | ||||||
Last conversion price calculation date | 12/21/2017 | 4/11/2018 | 4/11/2018 | |||||||||
Dividend threshold amount (per share)(4) | $ | 0.110025 | $ | 0.110525 | $ | 0.083330 |
(1) | Conversion rates denominated in shares of common stock per $1 principal amount of the Convertible Notes converted. |
(2) | Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date. |
(3) | The conversion price will increase only if the current monthly dividends (per share) exceed the dividend threshold amount (per share). |
(4) | The conversion rate is increased if monthly cash dividends paid to common shares exceed the monthly dividend threshold amount, subject to adjustment. Current dividend rates are at or below the minimum dividend threshold amount for further conversion rate adjustments for all bonds. |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | ||||||||
5 | $ | 33,295 | 5.00%–5.75% | 5.29 | % | July 15, 2023 – January 15, 2024 | ||||||
7 | 14,718 | 5.50%–6.00% | 5.84 | % | July 15, 2025 – January 15, 2026 | |||||||
8 | 385 | 5.75 | % | 5.75 | % | July 15, 2026 | ||||||
10 | 21,188 | 6.00%–6.25% | 6.06 | % | July 15, 2028 – November 15, 2028 | |||||||
$ | 69,586 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | |||||||
5 | $ | 31,950 | 4.00%–4.75% | 4.23 | % | July 15, 2022 – December 15, 2022 | |||||
7 | 2,825 | 4.75%–5.00% | 4.94 | % | July 15, 2024 | ||||||
8 | 17,402 | 4.50%–5.00% | 4.61 | % | August 15, 2025 – December 15, 2025 | ||||||
$ | 52,177 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | ||||||||
5 | $ | 254,515 | 4.00% – 5.75% | 4.97 | % | July 15, 2020 - January 15, 2024 | ||||||
5.2 | 2,618 | 4.63 | % | 4.63 | % | September 15, 2020 | ||||||
5.3 | 2,601 | 4.63 | % | 4.63 | % | September 15, 2020 | ||||||
5.5 | 53,836 | 4.25% – 4.75% | 4.59 | % | June 15, 2020 - October 15, 2020 | |||||||
6 | 2,182 | 4.88 | % | 4.88 | % | April 15, 2021 - May 15, 2021 | ||||||
6.5 | 38,672 | 5.10% – 5.25% | 5.23 | % | December 15, 2021 - May 15, 2022 | |||||||
7 | 103,377 | 4.00% – 6.00% | 5.21 | % | January 15, 2020 - January 15, 2026 | |||||||
7.5 | 1,996 | 5.75 | % | 5.75 | % | February 15, 2021 | ||||||
8 | 24,720 | 4.50% – 5.75% | 4.67 | % | August 15, 2025 - July 15, 2026 | |||||||
10 | 58,497 | 5.33% – 7.00% | 6.14 | % | March 15, 2022 - November 15, 2028 | |||||||
12 | 2,978 | 6.00 | % | 6.00 | % | November 15, 2025 - December 15, 2025 | ||||||
15 | 17,138 | 5.25% – 6.00% | 5.36 | % | May 15, 2028 - November 15, 2028 | |||||||
18 | 19,806 | 4.13% – 6.25% | 5.56 | % | December 15, 2030 - August 15, 2031 | |||||||
20 | 3,990 | 5.75% – 6.00% | 5.89 | % | November 15, 2032 - October 15, 2033 | |||||||
25 | 32,335 | 6.25% – 6.50% | 6.39 | % | August 15, 2038 - May 15, 2039 | |||||||
30 | 106,398 | 5.50% – 6.75% | 6.24 | % | November 15, 2042 - October 15, 2043 | |||||||
$ | 725,659 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | ||||||||
5 | $ | 228,835 | 4.00% – 5.50% | 4.92 | % | July 15, 2020 - June 15, 2023 | ||||||
5.2 | 4,440 | 4.63 | % | 4.63 | % | August 15, 2020 - September 15, 2020 | ||||||
5.3 | 2,636 | 4.63 | % | 4.63 | % | September 15, 2020 | ||||||
5.5 | 86,097 | 4.25% – 4.75% | 4.61 | % | May 15, 2020 - November 15, 2020 | |||||||
6 | 2,182 | 4.88 | % | 4.88 | % | April 15, 2021 - May 15, 2021 | ||||||
6.5 | 38,832 | 5.10% – 5.25% | 5.23 | % | December 15, 2021 - May 15, 2022 | |||||||
7 | 147,349 | 4.00% – 5.75% | 5.05 | % | January 15, 2020 - June 15, 2025 | |||||||
7.5 | 1,996 | 5.75% | 5.75 | % | February 15, 2021 | |||||||
8 | 24,720 | 4.50% – 5.25% | 4.65 | % | August 15, 2025 - May 15, 2026 | |||||||
10 | 37,424 | 5.34% – 7.00% | 6.19 | % | March 15, 2022 - December 15, 2025 | |||||||
12 | 2,978 | 6.00 | % | 6.00 | % | November 15, 2025 - December 15, 2025 | ||||||
15 | 17,163 | 5.25% – 6.00% | 5.35 | % | May 15, 2028 - November 15, 2028 | |||||||
18 | 20,677 | 4.13% – 6.25% | 5.55 | % | December 15, 2030 - August 15, 2031 | |||||||
20 | 4,120 | 5.75% – 6.00% | 5.89 | % | November 15, 2032 - October 15, 2033 | |||||||
25 | 33,139 | 6.25% – 6.50% | 6.39 | % | August 15, 2038 - May 15, 2039 | |||||||
30 | 108,336 | 5.50% – 6.75% | 6.24 | % | November 15, 2042 - October 15, 2043 | |||||||
$ | 760,924 |
Principal Outstanding | Unamortized Discount & Debt Issuance Costs | Net Carrying Value | Fair Value (1) | Effective Interest Rate | |||||||||||||||
Revolving Credit Facility(2) | $ | 297,000 | $ | 8,493 | $ | 297,000 | (3) | $ | 297,000 | 1ML+2.20% | (6) | ||||||||
2019 Notes | 101,647 | 25 | 101,622 | 101,549 | (4) | 6.51 | % | (7) | |||||||||||
2020 Notes | 378,500 | 2,998 | 375,502 | 375,964 | (4) | 5.52 | % | (7) | |||||||||||
2022 Notes | 328,500 | 7,613 | 320,887 | 319,171 | (4) | 5.71 | % | (7) | |||||||||||
Convertible Notes | 808,647 | 798,011 | 796,684 | ||||||||||||||||
2023 Notes | 320,000 | 3,683 | 316,317 | 324,326 | (4) | 6.09 | % | (7) | |||||||||||
2024 Notes | 219,297 | 4,846 | 214,451 | 214,560 | (4) | 6.76 | % | (7) | |||||||||||
2028 Notes | 67,411 | 2,255 | 65,156 | 61,641 | (4) | 6.77 | % | (7) | |||||||||||
6.375% 2024 Notes | 100,000 | 1,230 | 98,770 | 101,981 | (4) | 6.62 | % | (7) | |||||||||||
2029 Notes | 50,000 | 1,932 | 48,068 | 46,220 | (4) | 7.39 | % | (7) | |||||||||||
Public Notes | 756,708 | 742,762 | 748,728 | ||||||||||||||||
Prospect Capital InterNotes® | 725,659 | 11,641 | 714,018 | 681,652 | (5) | 5.91 | % | (8) | |||||||||||
Total | $ | 2,588,014 | $ | 2,551,791 | $ | 2,524,064 |
(1) | As permitted by ASC 825-10-25, we have not elected to value our Revolving Credit Facility, Convertible Notes, Public Notes and Prospect Capital InterNotes® at fair value. The fair value of these debt obligations are categorized as Level 2 under ASC 820 as of December 31, 2018. |
(2) | The maximum draw amount of the Revolving Credit facility as of December 31, 2018 is $1,020,000. |
(3) | Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Note 2 for accounting policy details. |
(4) | We use available market quotes to estimate the fair value of the Convertible Notes and Public Notes. |
(5) | The fair value of Prospect Capital InterNotes® is estimated by discounting remaining payments using current Treasury rates plus spread based on observable market inputs. |
(6) | Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation. |
(7) | The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs. For the 2024 Notes and the 2028 Notes, the rate presented is a combined effective interest rate of their respective original Note issuances and Note Follow-on Programs. |
(8) | For the Prospect Capital InterNotes®, the rate presented is the weighted average effective interest rate. Interest expense and deferred debt issuance costs, which are amortized on a straight-line method over the stated life of the obligation which approximates level yield, are weighted against the average year-to-date principal balance. |
Principal Outstanding | Unamortized Discount & Debt Issuance Costs | Net Carrying Value | Fair Value (1) | Effective Interest Rate | |||||||||||||||
Revolving Credit Facility(2) | $ | 37,000 | $ | 2,032 | $ | 37,000 | (3) | $ | 37,000 | 1ML+2.25% | (6) | ||||||||
2019 Notes | 101,647 | 339 | 101,308 | 103,562 | (4) | 6.51 | % | (7) | |||||||||||
2020 Notes | 392,000 | 4,270 | 387,730 | 392,529 | (4) | 5.38 | % | (7) | |||||||||||
2022 Notes | 328,500 | 8,465 | 320,035 | 320,084 | (4) | 5.69 | % | (7) | |||||||||||
Convertible Notes | 822,147 | 809,073 | 816,175 | ||||||||||||||||
5.00% 2019 Notes | 153,536 | 456 | 153,080 | 155,483 | (4) | 5.29 | % | (7) | |||||||||||
2023 Notes | 320,000 | 4,120 | 315,880 | 328,909 | (4) | 6.09 | % | (7) | |||||||||||
2024 Notes | 199,281 | 4,559 | 194,722 | 202,151 | (4) | 6.74 | % | (7) | |||||||||||
2028 Notes | 55,000 | 1,872 | 53,128 | 55,220 | (4) | 6.72 | % | (7) | |||||||||||
Public Notes | 727,817 | 716,810 | 741,763 | ||||||||||||||||
Prospect Capital InterNotes® | 760,924 | 11,998 | 748,926 | 779,400 | (5) | 5.76 | % | (8) | |||||||||||
Total | $ | 2,347,888 | $ | 2,311,809 | $ | 2,374,338 |
(1) | As permitted by ASC 825-10-25, we have not elected to value our Revolving Credit Facility, Convertible Notes, Public Notes and Prospect Capital InterNotes® at fair value. The fair value of these debt obligations are categorized as Level 2 under ASC 820 as of June 30, 2018. |
(2) | The maximum draw amount of the Revolving Credit facility as of June 30, 2018 is $885,000. |
(3) | Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Note 2 for accounting policy details. |
(4) | We use available market quotes to estimate the fair value of the Convertible Notes and Public Notes. |
(5) | The fair value of Prospect Capital InterNotes® is estimated by discounting remaining payments using current Treasury rates plus spread based on observable market inputs. |
(6) | Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation. |
(7) | The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs. For the 2024 Notes, the rate presented is a combined effective interest rate of the 2024 Notes and 2024 Notes Follow-on Program. |
(8) | For the Prospect Capital InterNotes®, the rate presented is the weighted average effective interest rate. Interest expense and deferred debt issuance costs, which are amortized on a straight-line method over the stated life of the obligation which approximates level yield, are weighted against the average year-to-date principal balance. |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | After 5 Years | |||||||||||||||
Revolving Credit Facility | $ | 297,000 | $ | — | $ | — | $ | — | $ | 297,000 | |||||||||
Convertible Notes | 808,647 | 101,647 | 378,500 | 328,500 | — | ||||||||||||||
Public Notes | 756,708 | — | — | 320,000 | 436,708 | ||||||||||||||
Prospect Capital InterNotes® | 725,659 | — | 245,018 | 210,398 | 270,243 | ||||||||||||||
Total Contractual Obligations | $ | 2,588,014 | $ | 101,647 | $ | 623,518 | $ | 858,898 | $ | 1,003,951 |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | After 5 Years | |||||||||||||||
Revolving Credit Facility | $ | 37,000 | $ | — | $ | 37,000 | $ | — | $ | — | |||||||||
Convertible Notes | 822,147 | 101,647 | 392,000 | 328,500 | — | ||||||||||||||
Public Notes | 727,817 | — | 153,536 | 320,000 | 254,281 | ||||||||||||||
Prospect Capital InterNotes® | 760,924 | — | 276,484 | 246,525 | 237,915 | ||||||||||||||
Total Contractual Obligations | $ | 2,347,888 | $ | 101,647 | $ | 859,020 | $ | 895,025 | $ | 492,196 |
Declaration Date | Record Date | Payment Date | Amount Per Share | Amount Distributed (in thousands) | ||||||||
5/9/2017 | 7/31/2017 | 8/24/2017 | $ | 0.083330 | $ | 30,011 | ||||||
5/9/2017 | 8/31/2017 | 9/21/2017 | 0.083330 | 30,017 | ||||||||
8/28/2017 | 9/29/2017 | 10/19/2017 | 0.060000 | 21,619 | ||||||||
8/28/2017 | 10/31/2017 | 11/22/2017 | 0.060000 | 21,623 | ||||||||
11/8/2017 | 11/30/2017 | 12/21/2017 | 0.060000 | 21,630 | ||||||||
11/8/2017 | 12/29/2017 | 1/18/2018 | 0.060000 | 21,659 | ||||||||
Total declared and payable for the six months ended December 31, 2017 | $ | 146,559 | ||||||||||
5/9/2018 | 7/31/2018 | 8/23/2018 | $ | 0.060000 | $ | 21,881 | ||||||
5/9/2018 | 8/31/2018 | 9/20/2018 | 0.060000 | 21,898 | ||||||||
8/28/2018 | 9/28/2018 | 10/18/2018 | 0.060000 | 21,914 | ||||||||
8/28/2018 | 10/31/2018 | 11/21/2018 | 0.060000 | 21,930 | ||||||||
11/6/2018 | 11/30/2018 | 12/20/2018 | 0.060000 | 21,945 | ||||||||
11/6/2018 | 1/2/2019 | 1/24/2019 | 0.060000 | 21,963 | ||||||||
Total declared and payable for the six months ended December 31, 2018 | $ | 131,531 |
• | $0.06 per share for January 2019 to holders of record on January 31, 2019 with a payment date of February 21, 2019. |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Structuring, amendment, and advisory fees | $ | 14,339 | $ | 6,751 | $ | 18,444 | $ | 14,958 | |||||||
Royalty and Net Revenue interests | 2,107 | 1,872 | 3,930 | 3,450 | |||||||||||
Administrative agent fees | 177 | 69 | 302 | 234 | |||||||||||
Total Other Income | $ | 16,623 | $ | 8,692 | $ | 22,676 | $ | 18,642 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (67,389 | ) | $ | 121,727 | $ | 16,406 | $ | 133,700 | ||||||
Weighted average common shares outstanding | 365,591,722 | 360,473,705 | 365,187,429 | 360,322,770 | |||||||||||
Net increase (decrease) in net assets resulting from operations per share | $ | (0.18 | ) | $ | 0.34 | $ | 0.04 | $ | 0.37 |
Tax Year Ended August 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Ordinary income | $ | 269,095 | $ | 359,215 | $ | 355,985 | ||||||
Capital gain | — | — | — | |||||||||
Return of capital | — | — | — | |||||||||
Total distributions paid to shareholders | $ | 269,095 | $ | 359,215 | $ | 355,985 |
Tax Year Ended August 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net increase in net assets resulting from operations | $ | 389,732 | $ | 254,904 | $ | 262,831 | ||||||
Net realized loss on investments | 26,762 | 100,765 | 22,666 | |||||||||
Net unrealized (gains) losses on investments | (105,599 | ) | (61,939 | ) | 73,181 | |||||||
Other temporary book-to-tax differences | (43,615 | ) | (32,117 | ) | (56,036 | ) | ||||||
Permanent differences | 31 | (772 | ) | 2,489 | ||||||||
Taxable income before deductions for distributions | $ | 267,311 | $ | 260,841 | $ | 305,131 |
• | No incentive fee in any calendar quarter in which our pre-incentive fee net investment income does not exceed the hurdle rate; |
• | 100.00% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming a 7.00% annualized hurdle rate); and |
• | 20.00% of the amount of our pre-incentive fee net investment income, if any, that exceeds 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming a 7.00% annualized hurdle rate). |
June 30, 2018 | $ | 225 | |
December 31, 2018 | 225 |
Three Months Ended December 31, 2017 | $ | 112 | |
Three Months Ended December 31, 2018 | 114 | ||
Six Months Ended December 31, 2017 | 225 | ||
Six Months Ended December 31, 2018 | 337 |
Three Months Ended December 31, 2017 | $ | 928 | |
Three Months Ended December 31, 2018 | 909 | ||
Six Months Ended December 31, 2017 | 1,863 | ||
Six Months Ended December 31, 2018 | 1,823 |
June 30, 2018 | $ | 306 | |
December 31, 2018 | — |
Three Months Ended December 31, 2017 | $ | 60 | |
Three Months Ended December 31, 2018 | 69 | ||
Six Months Ended December 31, 2017 | 120 | ||
Six Months Ended December 31, 2018 | 129 |
June 30, 2018 | $ | 60 | |
December 31, 2018 | — |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | — | ||
Six Months Ended December 31, 2017 | 45 | ||
Six Months Ended December 31, 2018 | — |
June 30, 2018 | $ | 7 | |
December 31, 2018 | 1 |
Three Months Ended December 31, 2017 | $ | 1,105 | |
Three Months Ended December 31, 2018 | 1,200 | ||
Six Months Ended December 31, 2017 | 1,105 | ||
Six Months Ended December 31, 2018 | 2,395 |
June 30, 2018 | $ | — | |
December 31, 2018 | 13 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 300 | ||
Six Months Ended December 31, 2017 | 175 | ||
Six Months Ended December 31, 2018 | 300 |
June 30, 2018 | $ | 150 | |
December 31, 2018 | 150 |
June 30, 2018 | $ | 55 | |
December 31, 2018 | 16 |
Three Months Ended December 31, 2017 | $ | 430 | |
Three Months Ended December 31, 2018 | 60 | ||
Six Months Ended December 31, 2017 | 940 | ||
Six Months Ended December 31, 2018 | 908 |
Three Months Ended December 31, 2017 | $ | 3,161 | |
Three Months Ended December 31, 2018 | 2,673 | ||
Six Months Ended December 31, 2017 | 6,241 | ||
Six Months Ended December 31, 2018 | 5,324 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 1,775 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 1,775 |
June 30, 2018 | $ | — | |
December 31, 2018 | 30 |
Three Months Ended December 31, 2017 | $ | 317 | |
Three Months Ended December 31, 2018 | — | ||
Six Months Ended December 31, 2017 | 317 | ||
Six Months Ended December 31, 2018 | — |
Three Months Ended December 31, 2017 | $ | 175 | |
Three Months Ended December 31, 2018 | 175 | ||
Six Months Ended December 31, 2017 | 350 | ||
Six Months Ended December 31, 2018 | 350 |
June 30, 2018 | $ | 175 | |
December 31, 2018 | 175 |
June 30, 2018 | $ | 33 | |
December 31, 2018 | — |
June 30, 2018 | $ | — | |
December 31, 2018 | 2 |
Three Months Ended December 31, 2017 | $ | 1,603 | |
Three Months Ended December 31, 2018 | 1,725 | ||
Six Months Ended December 31, 2017 | 3,206 | ||
Six Months Ended December 31, 2018 | 3,383 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | — | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 2,125 |
June 30, 2018 | $ | 2,631 | |
December 31, 2018 | 2,860 |
Three Months Ended December 31, 2017 | $ | 63 | |
Three Months Ended December 31, 2018 | 125 | ||
Six Months Ended December 31, 2017 | 125 | ||
Six Months Ended December 31, 2018 | 125 |
June 30, 2018 | $ | 63 | |
December 31, 2018 | — |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 735 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 735 |
June 30, 2018 | $ | 18 | |
December 31, 2018 | 9 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | N/A | ||
Six Months Ended December 31, 2017 | 7,834 | ||
Six Months Ended December 31, 2018 | N/A |
Three Months Ended December 31, 2017 | $ | 203 | |
Three Months Ended December 31, 2018 | N/A | ||
Six Months Ended December 31, 2017 | 415 | ||
Six Months Ended December 31, 2018 | N/A |
Three Months Ended December 31, 2017 | $ | 153 | |
Three Months Ended December 31, 2018 | N/A | ||
Six Months Ended December 31, 2017 | 302 | ||
Six Months Ended December 31, 2018 | N/A |
June 30, 2018 | $ | 274 | |
December 31, 2018 | N/A |
Three Months Ended December 31, 2017 | $ | 1,301 | |
Three Months Ended December 31, 2018 | 324 | ||
Six Months Ended December 31, 2017 | 3,211 | ||
Six Months Ended December 31, 2018 | 2,478 |
Three Months Ended December 31, 2017 | $ | 11,261 | |
Three Months Ended December 31, 2018 | 13,917 | ||
Six Months Ended December 31, 2017 | 22,603 | ||
Six Months Ended December 31, 2018 | 27,879 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 324 | ||
Six Months Ended December 31, 2017 | 869 | ||
Six Months Ended December 31, 2018 | 1,582 |
June 30, 2018 | $ | 4,703 | |
December 31, 2018 | 151 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 1,200 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 1,200 |
June 30, 2018 | $ | 600 | |
December 31, 2018 | — |
June 30, 2018 | $ | 26 | |
December 31, 2018 | 35 |
June 30, 2018 | $ | 825 | |
December 31, 2018 | 975 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 5,809 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 12,630 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 4,307 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 8,457 |
June 30, 2018 | $ | 127 | |
December 31, 2018 | 66 |
Three Months Ended December 31, 2017 | $ | 1,920 | |
Three Months Ended December 31, 2018 | 1,952 | ||
Six Months Ended December 31, 2017 | 3,840 | ||
Six Months Ended December 31, 2018 | 3,876 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 845 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 1,056 |
June 30, 2018 | $ | — | |
December 31, 2018 | 21 |
Three Months Ended December 31, 2017 | $ | 148 | |
Three Months Ended December 31, 2018 | 143 | ||
Six Months Ended December 31, 2017 | 299 | ||
Six Months Ended December 31, 2018 | 287 |
Three Months Ended December 31, 2017 | $ | 75 | |
Three Months Ended December 31, 2018 | 75 | ||
Six Months Ended December 31, 2017 | 150 | ||
Six Months Ended December 31, 2018 | 150 |
June 30, 2018 | $ | 75 | |
December 31, 2018 | 150 |
June 30, 2018 | $ | 51 | |
December 31, 2018 | 16 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 9,000 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 20,000 |
Three Months Ended December 31, 2017 | $ | 17,598 | |
Three Months Ended December 31, 2018 | 19,954 | ||
Six Months Ended December 31, 2017 | 34,936 | ||
Six Months Ended December 31, 2018 | 40,352 |
June 30, 2018 | $ | 426 | |
December 31, 2018 | 179 |
Three Months Ended December 31, 2017 | $ | 816 | |
Three Months Ended December 31, 2018 | — | ||
Six Months Ended December 31, 2017 | 2,618 | ||
Six Months Ended December 31, 2018 | — |
Three Months Ended December 31, 2017 | $ | 5,188 | |
Three Months Ended December 31, 2018 | — | ||
Six Months Ended December 31, 2017 | 9,391 | ||
Six Months Ended December 31, 2018 | — |
Three Months Ended December 31, 2017 | $ | 1,554 | |
Three Months Ended December 31, 2018 | 1,935 | ||
Six Months Ended December 31, 2017 | 3,132 | ||
Six Months Ended December 31, 2018 | 3,598 |
Three Months Ended December 31, 2017 | $ | 768 | |
Three Months Ended December 31, 2018 | 13,141 | ||
Six Months Ended December 31, 2017 | 781 | ||
Six Months Ended December 31, 2018 | 13,765 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | — | ||
Six Months Ended December 31, 2017 | 288 | ||
Six Months Ended December 31, 2018 | — |
Three Months Ended December 31, 2017 | $ | 325 | |
Three Months Ended December 31, 2018 | 525 | ||
Six Months Ended December 31, 2017 | 650 | ||
Six Months Ended December 31, 2018 | 1,050 |
June 30, 2018 | $ | 525 | |
December 31, 2018 | 525 |
Three Months Ended December 31, 2017 | $ | 314 | |
Three Months Ended December 31, 2018 | 93 | ||
Six Months Ended December 31, 2017 | 1,151 | ||
Six Months Ended December 31, 2018 | 225 |
June 30, 2018 | $ | 286 | |
December 31, 2018 | 84 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 165 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 165 |
Three Months Ended December 31, 2017 | $ | 875 | |
Three Months Ended December 31, 2018 | 897 | ||
Six Months Ended December 31, 2017 | 1,737 | ||
Six Months Ended December 31, 2018 | 1,787 |
Three Months Ended December 31, 2017 | $ | 151 | |
Three Months Ended December 31, 2018 | 444 | ||
Six Months Ended December 31, 2017 | 295 | ||
Six Months Ended December 31, 2018 | 444 |
June 30, 2018 | $ | — | |
December 31, 2018 | 10 |
Three Months Ended December 31, 2017 | $ | 100 | |
Three Months Ended December 31, 2018 | 100 | ||
Six Months Ended December 31, 2017 | 200 | ||
Six Months Ended December 31, 2018 | 200 |
June 30, 2018 | $ | 100 | |
December 31, 2018 | 100 |
June 30, 2018 | $ | 15 | |
December 31, 2018 | 4 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | — | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 1,000 |
Three Months Ended December 31, 2017 | $ | 133 | |
Three Months Ended December 31, 2018 | 133 | ||
Six Months Ended December 31, 2017 | 266 | ||
Six Months Ended December 31, 2018 | 267 |
June 30, 2018 | $ | 1 | |
December 31, 2018 | 1 |
Three Months Ended December 31, 2017 | $ | 247 | |
Three Months Ended December 31, 2018 | 140 | ||
Six Months Ended December 31, 2017 | 493 | ||
Six Months Ended December 31, 2018 | 316 |
June 30, 2018 | $ | 2 | |
December 31, 2018 | 2 |
Three Months Ended December 31, 2017 | $ | 100 | |
Three Months Ended December 31, 2018 | 100 | ||
Six Months Ended December 31, 2017 | 200 | ||
Six Months Ended December 31, 2018 | 200 |
June 30, 2018 | $ | 100 | |
December 31, 2018 | 100 |
June 30, 2018 | $ | 1,288 | |
December 31, 2018 | — |
June 30, 2018 | $ | 4 | |
December 31, 2018 | 2 |
Three Months Ended December 31, 2017 | — | |
Three Months Ended December 31, 2018 | 5,000 | |
Six Months Ended December 31, 2017 | — | |
Six Months Ended December 31, 2018 | 5,250 |
Three Months Ended December 31, 2017 | N/A | |
Three Months Ended December 31, 2018 | 922 | |
Six Months Ended December 31, 2017 | N/A | |
Six Months Ended December 31, 2018 | 3,253 |
June 30, 2018 | $ | 270 | |
December 31, 2018 | 33 |
June 30, 2018 | $ | — | |
December 31, 2018 | — |
Three Months Ended December 31, 2017 | $ | 742 | |
Three Months Ended December 31, 2018 | 826 | ||
Six Months Ended December 31, 2017 | 1,479 | ||
Six Months Ended December 31, 2018 | 1,628 |
Three Months Ended December 31, 2017 | $ | 45 | |
Three Months Ended December 31, 2018 | 45 | ||
Six Months Ended December 31, 2017 | 90 | ||
Six Months Ended December 31, 2018 | 90 |
June 30, 2018 | $ | 45 | |
December 31, 2018 | 45 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | — | ||
Six Months Ended December 31, 2017 | 2 | ||
Six Months Ended December 31, 2018 | — |
Three Months Ended December 31, 2017 | N/A | |
Three Months Ended December 31, 2018 | 162 | |
Six Months Ended December 31, 2017 | N/A | |
Six Months Ended December 31, 2018 | 162 |
Three Months Ended December 31, 2017 | N/A | |
Three Months Ended December 31, 2018 | 654 | |
Six Months Ended December 31, 2017 | N/A | |
Six Months Ended December 31, 2018 | 654 |
June 30, 2018 | $ | 625 | |
December 31, 2018 | 775 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 4,000 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 7,500 |
Three Months Ended December 31, 2017 | $ | 1,211 | |
Three Months Ended December 31, 2018 | 1,487 | ||
Six Months Ended December 31, 2017 | 2,396 | ||
Six Months Ended December 31, 2018 | 2,806 |
Three Months Ended December 31, 2017 | $ | 556 | |
Three Months Ended December 31, 2018 | — | ||
Six Months Ended December 31, 2017 | 1,103 | ||
Six Months Ended December 31, 2018 | — |
June 30, 2018 | $ | 14 | |
December 31, 2018 | 17 |
Three Months Ended December 31, 2017 | $ | 280 | |
Three Months Ended December 31, 2018 | 274 | ||
Six Months Ended December 31, 2017 | 560 | ||
Six Months Ended December 31, 2018 | 560 |
June 30, 2018 | $ | 3 | |
December 31, 2018 | 3 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 169 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 319 |
Three Months Ended December 31, 2017 | $ | — | |
Three Months Ended December 31, 2018 | 153 | ||
Six Months Ended December 31, 2017 | — | ||
Six Months Ended December 31, 2018 | 153 |
Three Months Ended December 31, 2017 | $ | 75 | |
Three Months Ended December 31, 2018 | 150 | ||
Six Months Ended December 31, 2017 | 150 | ||
Six Months Ended December 31, 2018 | 225 |
June 30, 2018 | $ | 75 | |
December 31, 2018 | 75 |
June 30, 2018 | $ | 3 | |
December 31, 2018 | 1 |
June 30, 2018 | $ | 41 | |
December 31, 2018 | 14 |
June 30, 2018 | $ | 41 | |
December 31, 2018 | — |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Per Share Data | ||||||||||||||||
Net asset value at beginning of period | $ | 9.39 | $ | 9.12 | $ | 9.35 | $ | 9.32 | ||||||||
Net investment income(1) | 0.22 | 0.20 | 0.45 | 0.38 | ||||||||||||
Net realized and change in unrealized (losses) gains(1) | (0.40 | ) | 0.14 | (0.41 | ) | (0.01 | ) | |||||||||
Net increase from operations | (0.18 | ) | 0.34 | 0.04 | 0.37 | |||||||||||
Distributions of net investment income | (0.18 | ) | (0.18 | ) | (0.36 | ) | (0.41 | ) | ||||||||
Common stock transactions(2) | (0.01 | ) | — | (4) | (0.01 | ) | — | (4) | ||||||||
Net asset value at end of period | $ | 9.02 | $ | 9.28 | $ | 9.02 | $ | 9.28 | ||||||||
Per share market value at end of period | $ | 6.31 | $ | 6.74 | $ | 6.31 | $ | 6.74 | ||||||||
Total return based on market value(3) | (11.54 | %) | 3.01 | % | (0.90 | %) | (11.82 | %) | ||||||||
Total return based on net asset value(3) | (1.29 | %) | 4.51 | % | 1.67 | % | 5.78 | % | ||||||||
Shares of common stock outstanding at end of period | 366,055,966 | 360,980,752 | 366,055,966 | 360,980,752 | ||||||||||||
Weighted average shares of common stock outstanding | 365,591,722 | 360,473,705 | 365,187,429 | 360,322,770 | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net assets at end of period | $ | 3,303,175 | $ | 3,348,412 | $ | 3,303,175 | $ | 3,348,412 | ||||||||
Portfolio turnover rate | 2.78 | % | 13.30 | % | 3.77 | % | 17.01 | % | ||||||||
Annualized ratio of operating expenses to average net assets | 12.72 | % | 10.76 | % | 11.97 | % | 11.06 | % | ||||||||
Annualized ratio of net investment income to average net assets | 9.60 | % | 8.83 | % | 9.82 | % | 8.23 | % |
Year Ended June 30, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Per Share Data | |||||||||||||||||||
Net asset value at beginning of year | $ | 9.32 | $ | 9.62 | $ | 10.31 | $ | 10.56 | $ | 10.72 | |||||||||
Net investment income(1) | 0.79 | 0.85 | 1.04 | 1.03 | 1.19 | ||||||||||||||
Net realized and change in unrealized gains (losses)(1) | 0.04 | (0.15 | ) | (0.75 | ) | (0.05 | ) | (0.13 | ) | ||||||||||
Net increase from operations | 0.83 | 0.70 | 0.29 | 0.98 | 1.06 | ||||||||||||||
Distributions of net investment income | (0.77 | ) | (1.00 | ) | (1.00 | ) | (1.19 | ) | (1.32 | ) | |||||||||
Common stock transactions(2) | (0.03 | ) | — | (4) | 0.02 | (0.04 | ) | 0.10 | |||||||||||
Net asset value at end of year | $ | 9.35 | $ | 9.32 | $ | 9.62 | $ | 10.31 | $ | 10.56 | |||||||||
Per share market value at end of year | $ | 6.71 | $ | 8.12 | $ | 7.82 | $ | 7.37 | $ | 10.63 | |||||||||
Total return based on market value(3) | (7.42 | %) | 16.80 | % | 21.84 | % | (20.84 | %) | 10.88 | % | |||||||||
Total return based on net asset value(3) | 12.39 | % | 8.98 | % | 7.15 | % | 11.47 | % | 10.97 | % | |||||||||
Shares of common stock outstanding at end of year | 364,409,938 | 360,076,933 | 357,107,231 | 359,090,759 | 342,626,637 | ||||||||||||||
Weighted average shares of common stock outstanding | 361,456,075 | 358,841,714 | 356,134,297 | 353,648,522 | 300,283,941 | ||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets at end of year | $ | 3,407,047 | $ | 3,354,952 | $ | 3,435,917 | $ | 3,703,049 | $ | 3,618,182 | |||||||||
Portfolio turnover rate | 30.70 | % | 23.65 | % | 15.98 | % | 21.89 | % | 15.21 | % | |||||||||
Ratio of operating expenses to average net assets | 11.08 | % | 11.57 | % | 11.95 | % | 11.66 | % | 11.11 | % | |||||||||
Ratio of net investment income to average net assets | 8.57 | % | 8.96 | % | 10.54 | % | 9.87 | % | 11.18 | % |
(1) | Per share data amount is based on the weighted average number of common shares outstanding for the year/period presented (except for dividends to shareholders which is based on actual rate per share). |
(2) | Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our dividend reinvestment plan, shares issued to acquire investments and shares repurchased below net asset value pursuant to our Repurchase Program. |
(3) | Total return based on market value is based on the change in market price per share between the opening and ending market prices per share in each period and assumes that dividends are reinvested in accordance with our dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in each period and assumes that dividends are reinvested in accordance with our dividend reinvestment plan. For periods less than a year, total return is not annualized. |
(4) | Amount is less than $0.01. |
Investment Income | Net Investment Income | Net Realized and Unrealized (Losses) Gains | Net Increase (Decrease) in Net Assets from Operations | |||||||||||||||||||||||||||||
Quarter Ended | Total | Per Share (1) | Total | Per Share (1) | Total | Per Share (1) | Total | Per Share (1) | ||||||||||||||||||||||||
September 30, 2016 | $ | 179,832 | $ | 0.50 | $ | 78,919 | $ | 0.22 | $ | 2,447 | $ | 0.01 | $ | 81,366 | $ | 0.23 | ||||||||||||||||
December 31, 2016 | 183,480 | 0.51 | 84,405 | 0.24 | 16,475 | 0.04 | 100,880 | 0.28 | ||||||||||||||||||||||||
March 31, 2017 | 171,032 | 0.48 | 73,080 | 0.20 | (53,588 | ) | (0.15 | ) | 19,492 | 0.05 | ||||||||||||||||||||||
June 30, 2017 | 166,702 | 0.46 | 69,678 | 0.19 | (18,510 | ) | (0.05 | ) | 51,168 | 0.14 | ||||||||||||||||||||||
September 30, 2017 | $ | 158,579 | $ | 0.44 | $ | 63,732 | $ | 0.18 | $ | (51,759 | ) | $ | (0.15 | ) | $ | 11,973 | $ | 0.03 | ||||||||||||||
December 31, 2017 | 162,400 | 0.45 | 73,192 | 0.20 | 48,535 | 0.14 | 121,727 | 0.34 | ||||||||||||||||||||||||
March 31, 2018 | 162,835 | 0.45 | 70,446 | 0.19 | (18,587 | ) | (0.04 | ) | 51,859 | 0.14 | ||||||||||||||||||||||
June 30, 2018 | 174,031 | 0.48 | 79,480 | 0.22 | 34,823 | 0.09 | 114,304 | 0.31 | ||||||||||||||||||||||||
September 30, 2018 | $ | 180,422 | $ | 0.49 | $ | 85,159 | $ | 0.23 | $ | (1,364 | ) | $ | — | (2) | $ | 83,795 | $ | 0.23 | ||||||||||||||
December 31, 2018 | 187,883 | 0.51 | 80,811 | 0.22 | (148,200 | ) | (0.40 | ) | (67,389 | ) | (0.18 | ) |
(1) | Per share amounts are calculated using the weighted average number of common shares outstanding for the period presented. As such, the sum of the quarterly per share amounts above will not necessarily equal the per share amounts for the fiscal year. |
(2) | Amount is less than $0.01. |
• | $0.06 per share for February 2019 to holders of record on February 28, 2019 with a payment date of March 21, 2019. |
• | $0.06 per share for March 2019 to holders of record on March 29, 2019 with a payment date of April 18, 2019. |
• | $0.06 per share for April 2019 to holders of record on April 30, 2019 with a payment date of May 23, 2019. |
Page | ||
Use of proceeds | Unless otherwise specified in a prospectus supplement, we intend to use the net proceeds from selling Securities pursuant to this prospectus initially to maintain balance sheet liquidity, involving repayment of debt under our credit facility, if any, investments in high quality short-term debt instruments or a combination thereof, and thereafter to make long-term investments in accordance with our investment objective. Interest on borrowings under the credit facility is one-month LIBOR plus 220 basis points, with no minimum LIBOR floor. Additionally, the lenders charge a fee on the unused portion of the credit facility equal to either 50 basis points if more than sixty percent of the credit facility is drawn, or 100 basis points if more than thirty-five percent and an amount less than or equal to sixty percent of the credit facility is drawn, or 150 basis points if an amount less than or equal to thirty-five percent of the credit facility is drawn. See “Use of Proceeds.” |
Distributions | In June 2010, our Board of Directors approved a change in dividend policy from quarterly distributions to monthly distributions. Since that time, we have paid monthly distributions to the holders of our common stock and intend to continue to do so. The amount of the monthly distributions is determined by our Board of Directors and is based on our estimate of our investment company taxable income and net short-term capital gains. Certain amounts of the monthly distributions may from time to time be paid out of our capital rather than from earnings for the month as a result of our deliberate planning or accounting reclassifications. Distributions in excess of our current and accumulated earnings and profits constitute a return of capital and will reduce the stockholder’s adjusted tax basis in such stockholder’s common stock. A return of capital (1) is a return of the original amount invested, (2) does not constitute earnings or profits and (3) will have the effect of reducing the basis such that when a stockholder sells its shares the sale may be subject to taxes even if the shares are sold for less than the original purchase price. After the adjusted basis is reduced to zero, these distributions will constitute capital gains to such stockholders. Certain additional amounts may be deemed as distributed to stockholders for income tax purposes. Other types of Securities will likely pay distributions in accordance with their terms. See “Price Range of Common Stock,” “Distributions” and “Material U.S. Federal Income Tax Considerations.” | |
Taxation | We have qualified and elected to be treated for U.S. federal income tax purposes as a regulated investment company, or a RIC, under Subchapter M of the Internal Revenue Code of 1986, or the Code. As a RIC, we generally do not have to pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that we distribute to our stockholders as dividends. To maintain our qualification as a RIC and obtain RIC tax treatment, we must satisfy certain source-of-income and asset diversification requirements and distribute annually at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. See “Distributions” and “Material U.S. Federal Income Tax Considerations.” | |
Dividend reinvestment and direct stock purchase plan | We have adopted a dividend reinvestment and direct stock purchase plan that provides for reinvestment of our dividends or distributions on behalf of our stockholders, unless a stockholder elects to receive cash, and the ability to purchase additional shares by making optional cash investments. As a result, when our Board of Directors authorizes, and we declare, a cash dividend or distribution, then our stockholders who have not “opted out” of our dividend reinvestment and direct stock purchase plan will have their cash dividends or distributions automatically reinvested in additional shares of our common stock, rather than receiving the cash dividends or distributions. If you are not a current stockholder and want to enroll or have “opted out” and wish to rejoin, you may purchase shares directly through the plan or opt in by enrolling online or submitting to the plan administrator a completed enrollment form and, if you are not a current stockholder, making an initial investment of at least $250. Stockholders who receive distributions in the form of stock are subject to the same U.S. federal, state and local tax consequences as stockholders who elect to receive their distributions in cash. See “Dividend Reinvestment and Direct Stock Purchase Plan.” | |
The NASDAQ Global Select Market Symbol | PSEC | |
Anti-takeover provisions | Our charter and bylaws, as well as certain statutory and regulatory requirements, contain provisions that may have the effect of discouraging a third party from making an acquisition proposal for us. These anti-takeover provisions may inhibit a change in control in circumstances that could give the holders of our common stock the opportunity to realize a premium over the market price of our common stock. See “Description Of Our Capital Stock.” | |
Management arrangements | Prospect Capital Management serves as our investment adviser. Prospect Administration serves as our administrator. For a description of Prospect Capital Management, Prospect Administration and our contractual arrangements with these companies, see “Business—Management Services—Investment Advisory Agreement,” and “Business— Management Services—Administration Agreement.” |
Risk factors | Investment in our Securities involves certain risks relating to our structure and investment objective that should be considered by prospective purchasers of our Securities. In addition, as a business development company, our portfolio primarily includes securities issued by privately-held companies. These investments generally involve a high degree of business and financial risk, and are less liquid than public securities. We are required to mark the carrying value of our investments to fair value on a quarterly basis, and economic events, market conditions and events affecting individual portfolio companies can result in quarter-to-quarter mark-downs and mark-ups of the value of individual investments that collectively can materially affect our net asset value, or NAV. Also, our determinations of fair value of privately-held securities may differ materially from the values that would exist if there was a ready market for these investments. A large number of entities compete for the same kind of investment opportunities as we do. Moreover, our business requires a substantial amount of capital to operate and to grow and we seek additional capital from external sources. In addition, the failure to qualify as a RIC eligible for pass-through tax treatment under the Code on income distributed to stockholders could have a materially adverse effect on the total return, if any, obtainable from an investment in our Securities. See “Risk Factors” and the other information included in this prospectus for a discussion of factors you should carefully consider before deciding to invest in our Securities. | |
Plan of distribution | We may offer, from time to time, up to $5,000,000,000 of our common stock, preferred stock, debt securities, subscription rights to purchase shares of our securities, warrants representing rights to purchase our securities or separately tradeable units combining two or more of our securities on the terms to be determined at the time of the offering. Securities may be offered at prices and on terms described in one or more supplements to this prospectus directly to one or more purchasers, through agents designated from time to time by us, or to or through underwriters or dealers. The supplement to this prospectus relating to the offering will identify any agents or underwriters involved in the sale of our Securities, and will set forth any applicable purchase price, fee and commission or discount arrangement or the basis upon which such amount may be calculated. We may not sell Securities pursuant to this prospectus without delivering a prospectus supplement describing the method and terms of the offering of such Securities. For more information, see “Plan of Distribution.” |
Stockholder transaction expenses: | ||
Sales load (as a percentage of offering price)(1) | - | |
Offering expenses borne by the Company (as a percentage of offering price)(2) | - | |
Dividend reinvestment plan expenses(3) | $15.00 | |
Total stockholder transaction expenses (as a percentage of offering price)(4) | - | |
Annual expenses (as a percentage of net assets attributable to common stock): | ||
Management fees(5) | 3.89 | % |
Incentive fees payable under Investment Advisory Agreement (20% of realized capital gains and 20% of pre-incentive fee net investment income)(6) | 2.10 | % |
Total advisory fees | 5.99 | % |
Total interest expense(7) | 5.06 | % |
Acquired Fund Fees and Expenses(8) | 1.14 | % |
Other expenses(9) | 0.76 | % |
Total annual expenses(6)(9) | 12.95 | % |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
You would pay the following expenses on a $1,000 investment, assuming a 5% annual return* | $ | 109 | $ | 307 | $ | 483 | $ | 840 | ||||||||
You would pay the following expenses on a $1,000 investment, assuming a 5% annual return** | $ | 118 | $ | 335 | $ | 526 | $ | 913 |
* | Assumes that we will not realize any capital gains computed net of all realized capital losses and unrealized capital depreciation. |
** | Assumes no unrealized capital depreciation or realized capital losses and 5% annual return resulting entirely from net realized capital gains (and therefore subject to the capital gains incentive fee). |
(1) | In the event that the Securities to which this prospectus relates are sold to or through underwriters, a corresponding prospectus supplement will disclose the estimated applicable sales load. |
(2) | The related prospectus supplement will disclose the estimated amount of offering expenses, the offering price and the estimated offering expenses borne by us as a percentage of the offering price. |
(3) | The expenses of the dividend reinvestment plan are included in “other expenses.” The plan administrator’s fees under the plan are paid by us. There are no brokerage charges or other charges to stockholders who participate in reinvestment of dividends or other distributions under the plan except that, if a participant elects by written notice to the plan administrator to have the plan administrator sell part or all of the shares held by the plan administrator in the participant’s account and remit the proceeds to the participant, the plan administrator is authorized to deduct a $15 transaction fee plus a $0.10 per share brokerage commissions from the proceeds. See “Capitalization” and “Dividend Reinvestment and Direct Stock Repurchase Plan” in this prospectus. |
(4) | The related prospectus supplement will disclose the offering price and the total stockholder transaction expenses as a percentage of the offering price. |
(5) | Our base management fee is 2% of our gross assets (which include any amount borrowed, i.e., total assets without deduction for any liabilities, including any borrowed amounts for non-investment purposes, for which purpose we have not and have no intention of borrowing). Although we have no intent to borrow the entire amount available under our line of credit, assuming that we had total borrowings of $3.1 billion, the 2% management fee of gross assets would equal approximately 3.89% of net assets. Based on our borrowings as of October 19, 2018 of $2.6 billion, the 2% management fee of gross assets would equal approximately 3.58% of net assets including costs of the undrawn credit facility. See “Business— Management Services—Investment Advisory Agreement” and footnote 6 below. |
(6) | Based on the incentive fee paid during our most recently completed quarter ended June 30, 2018, all of which consisted of an income incentive fee. The capital gain incentive fee is paid without regard to pre-incentive fee income. The incentive fee has two parts. The first part, the income incentive fee, which is payable quarterly in arrears, will equal 20% of the excess, if any, of our pre-incentive fee net investment income that exceeds a 1.75% quarterly (7% annualized) hurdle rate, subject to a “catch up” provision measured as of the end of each calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees and other fees that we receive from portfolio companies) accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, expenses payable under the Administration Agreement described below, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment in kind interest and zero coupon securities), accrued income that we have not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, is compared to a “hurdle rate” of 1.75% per quarter (7% annualized). The “catch-up” provision requires us to pay 100% of our pre-incentive fee net investment income with respect to that portion of such income, if any, that exceeds the hurdle rate but is less than 125% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming an annualized hurdle rate of 7%). The “catch-up” provision is meant to provide Prospect Capital Management with 20% of our pre-incentive fee net investment income as if a hurdle rate did not apply when our pre-incentive fee net investment income exceeds 125% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming an annualized hurdle rate of 7%). The second part of the incentive fee, the capital gains incentive fee, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20% of our realized capital gains for the calendar year, if any, computed net of all realized capital losses and unrealized capital |
(7) | As of October 19, 2018 Prospect has $2.3 billion outstanding of its Unsecured Notes (as defined below) in various maturities, ranging from January 15, 2020 to October 15, 2043, and interest rates, ranging from 4.00% to 7.00%, some of which are convertible into shares of Prospect common stock at various conversion rates. Interest on borrowings under the credit facility is one-month LIBOR plus 220 basis points, with no minimum LIBOR floor. Additionally, the lenders charge a fee on the unused portion of the credit facility equal to either 50 basis points if more than sixty percent of the credit facility is drawn, or 100 basis points if more than thirty-five percent and an amount less than or equal to sixty percent of the credit facility is drawn, or 150 basis points if an amount less than or equal to thirty-five percent of the credit facility is drawn. Please see “Business of Prospect—General” and “Risks Related to Prospect—Risks Relating to Prospect’s Business” below for more detail on the Unsecured Notes. |
(8) | The Company’s stockholders indirectly bear the expenses of underlying investment companies in which the Company invests. This amount includes the fees and expenses of investment companies in which the Company is invested in as of June 30, 2018. When applicable, fees and expenses are based on historic fees and expenses for the investment companies, and for those investment companies with little or no operating history fees and expenses are based on expected fees and expenses stated in the investment companies’ prospectus or other similar communication without giving effect to any performance. Future fees and expenses for certain investment companies may be substantially higher or lower because certain fees and expenses are based on the performance of the investment companies, which may fluctuate over time. The amount of the Company’s average net assets used in calculating this percentage was based on net assets of approximately $3.4 billion as of June 30, 2018. Amount reflects the estimated annual asset management fees incurred indirectly by us in connection with our investment in CLOs during the next 12 months, including asset management fees payable to the collateral managers of CLO equity tranches and incentive fees due to the collateral managers of CLO equity tranches. As a percent of the Company’s net assets, the CLO acquired fund fees are 1.13%. The 1.13% is based on 3.57% of fees for the entire CLO portfolio. The 3.57% is composed of 3.49% of collateral manager fees and 0.08% of incentive fees. The 3.49% of collateral manager fees are determined by multiplying 0.4085% (collateral managers fees historically paid) by 8.6 (the a leverage in such CLOs). The 0.08% of incentive fees are determined by multiplying 0.08% (an estimate if the CLOs were redeemed in the next 12 months and the underlying portfolios were liquidated) by 100% (the assumed amount of total assets invested in equity tranches of CLOs). However, such amounts are uncertain and difficult to predict. Future fees and expenses may be substantially higher or lower because certain fees and expenses are based on the performance of the CLOs, which may fluctuate over time. As a result of such investments, our stockholders may be required to pay two levels of fees in connection with their investment in our shares, including fees payable under our Investment Advisory Agreement, and fees charged to us on such investments. |
(9) | “Other expenses” are based on estimated amounts for the current fiscal year. The amount shown above represents expenses during the year ended June 30, 2018, which reflects all of our estimated recurring operating expenses (except fees and expenses reported in other items of this table) that are deducted from our operating income and reflected as expenses in our Statement of Operations. The estimate of our overhead expenses, including payments under an administration agreement with Prospect Administration, or the Administration Agreement is based on our projected allocable portion of overhead and other expenses incurred by Prospect Administration in performing its obligations under the Administration Agreement. “Other expenses” does not include non-recurring expenses. See “Business—Management Services—Administration Agreement.” |
Year Ended June 30, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(in thousands except data relating to shares, per share and number of portfolio companies) | |||||||||||||||||||
Performance Data: | |||||||||||||||||||
Total interest income | $ | 607,012 | $ | 668,717 | $ | 731,618 | $ | 748,974 | $ | 613,741 | |||||||||
Total dividend income | 13,046 | 5,679 | 26,501 | 7,663 | 26,837 | ||||||||||||||
Total other income | 37,787 | 26,650 | 33,854 | 34,447 | 71,713 | ||||||||||||||
Total Investment Income | 657,845 | 701,046 | 791,973 | 791,084 | 712,291 | ||||||||||||||
Interest and credit facility expenses | (155,039 | ) | (164,848 | ) | (167,719 | ) | (170,660 | ) | (130,103 | ) | |||||||||
Investment advisory expense | (189,759 | ) | (199,394 | ) | (219,305 | ) | (225,277 | ) | (198,296 | ) | |||||||||
Other expenses | (26,197 | ) | (30,722 | ) | (33,821 | ) | (32,400 | ) | (26,669 | ) | |||||||||
Total Operating Expenses | (370,995 | ) | (394,964 | ) | (420,845 | ) | (428,337 | ) | (355,068 | ) | |||||||||
Net Investment Income | 286,850 | 306,082 | 371,128 | 362,747 | 357,223 | ||||||||||||||
Net realized and change in unrealized gains (losses) | 13,013 | (53,176 | ) | (267,766 | ) | (16,408 | ) | (38,203 | ) | ||||||||||
Net Increase in Net Assets from Operations | $ | 299,863 | $ | 252,906 | $ | 103,362 | $ | 346,339 | $ | 319,020 | |||||||||
Per Share Data: | |||||||||||||||||||
Net Increase in Net Assets from Operations(1) | $ | 0.83 | $ | 0.70 | $ | 0.29 | $ | 0.98 | $ | 1.06 | |||||||||
Dividends declared per share | $ | (0.77 | ) | $ | (1.00 | ) | $ | (1.00 | ) | $ | (1.19 | ) | $ | (1.32 | ) | ||||
Weighted average shares of common stock outstanding | 361,456,075 | 358,841,714 | 356,134,297 | 353,648,522 | 300,283,941 | ||||||||||||||
Assets and Liabilities Data: | |||||||||||||||||||
Investments at Fair Value | 5,727,279 | 5,838,305 | 5,897,708 | $ | 6,609,558 | $ | 6,253,739 | ||||||||||||
Other Assets(4) | 111,541 | 334,484 | 338,473 | 144,356 | 166,520 | ||||||||||||||
Total Assets(4) | 5,838,820 | 6,172,789 | 6,236,181 | 6,753,914 | 6,420,259 | ||||||||||||||
Revolving Credit Facility | 37,000 | — | — | 368,700 | 92,000 | ||||||||||||||
Convertible Notes(4) | 809,073 | 937,641 | 1,074,361 | 1,218,226 | 1,219,676 | ||||||||||||||
Public Notes(4) | 716,810 | 738,300 | 699,368 | 541,490 | 637,584 | ||||||||||||||
Prospect Capital InterNotes®(4) | 748,926 | 966,254 | 893,210 | 811,180 | 766,781 | ||||||||||||||
Due to Prospect Administration and Prospect Capital Management | 51,257 | 50,159 | 55,914 | 6,788 | 2,211 | ||||||||||||||
Other liabilities | 68,707 | 125,483 | 77,411 | 104,481 | 83,825 | ||||||||||||||
Total Liabilities(4) | 2,431,773 | 2,817,837 | 2,800,264 | 3,050,865 | 2,802,077 | ||||||||||||||
Net Assets | $ | 3,407,047 | $ | 3,354,952 | $ | 3,435,917 | $ | 3,703,049 | $ | 3,618,182 |
Year Ended June 30, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(in thousands except data relating to shares, per share and number of portfolio companies) | |||||||||||||||||||
Investment Activity Data: | |||||||||||||||||||
No. of portfolio companies at period end | 135 | 121 | 125 | 131 | 142 | ||||||||||||||
Acquisitions | $ | 1,730,657 | $ | 1,489,470 | $ | 979,102 | $ | 1,867,477 | $ | 2,933,365 | |||||||||
Sales, repayments, and other disposals | $ | 1,831,286 | $ | 1,413,882 | $ | 1,338,875 | $ | 1,411,562 | $ | 767,978 | |||||||||
Total return based on market value(2) | (7.42 | )% | 16.80 | % | 21.84 | % | (20.84 | )% | 10.88 | % | |||||||||
Total return based on net asset value(2) | 12.39 | % | 8.98 | % | 7.15 | % | 11.47 | % | 10.97 | % | |||||||||
Weighted average yield on debt portfolio at year end(3) | 13.00 | % | 12.20 | % | 13.20 | % | 12.70 | % | 12.10 | % | |||||||||
Weighted average yield on total portfolio at year end(5) | 10.50 | % | 10.35 | % | 12.04 | % | 11.87 | % | 11.90 | % |
(1) | Per share data is based on the weighted average number of common shares outstanding for the year presented (except for dividends to shareholders which is based on actual rate per share). |
(2) | Total return based on market value is based on the change in market price per share between the opening and ending market prices per share in each year and assumes that dividends are reinvested in accordance with our dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in each year and assumes that dividends are reinvested in accordance with our dividend reinvestment plan. |
(3) | Excludes equity investments and non-performing loans. |
(4) | We have changed our method of presentation relating to debt issuance costs in accordance with ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30). Unamortized deferred financing costs of $40,526, $44,140, and $57,010 previously reported as an asset on the Consolidated Statements of Assets and Liabilities as of June 30, 2016, 2015, and 2014, respectively, have been reclassified as a direct deduction to the respective Unsecured Notes. See Critical Accounting Policies and Estimates for further discussion. |
(5) | Includes equity investments and non-performing loans. |
• | sudden electrical or telecommunications outages; |
• | natural disasters such as earthquakes, tornadoes and hurricanes; |
• | disease pandemics; |
• | events arising from local or larger scale political or social matters, including terrorist acts; and |
• | cyber-attacks. |
• | These companies may have limited financial resources and may be unable to meet their obligations under their securities that we hold, which may be accompanied by a deterioration in the value of their securities or of any collateral with respect to any securities, and a reduction in the likelihood of our realizing on any guarantees we may have obtained in connection with our investment. |
• | They may have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions as well as general economic downturns. |
• | Because many of these companies are privately held companies, public information is generally not available about these companies. As a result, we will depend on the ability of the Investment Adviser to obtain adequate information to evaluate these companies in making investment decisions. If the Investment Adviser is unable to uncover all material information about these companies, it may not make a fully informed investment decision, and we may lose money on our investments. |
• | They are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a materially adverse impact on our portfolio company and, in turn, on us. |
• | They may have less predictable operating results, may from time to time be parties to litigation, may be engaged in changing businesses with products subject to a risk of obsolescence and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. |
• | They may have difficulty accessing the capital markets to meet future capital needs. |
• | Changes in laws and regulations, as well as their interpretations, may adversely affect their business, financial structure or prospects. |
• | Increased taxes, regulatory expense or the costs of changes to the way they conduct business due to the effects of climate change may adversely affect their business, financial structure or prospects. |
• | Any equity investment we make in a portfolio company could be subject to further dilution as a result of the issuance of additional equity interests and to serious risks as a junior security that will be subordinate to all indebtedness (including trade creditors) or senior securities in the event that the issuer is unable to meet its obligations or becomes subject to a bankruptcy process. |
• | To the extent that the portfolio company requires additional capital and is unable to obtain it, we may not recover our investment. |
• | In some cases, equity securities in which we invest will not pay current dividends, and our ability to realize a return on our investment, as well as to recover our investment, will be dependent on the success of the portfolio company. Even if the portfolio company is successful, our ability to realize the value of our investment may be dependent on the occurrence of a liquidity event, such as a public offering or the sale of the portfolio company. It is likely to take a significant amount of time before a liquidity event occurs or we can otherwise sell our investment. In addition, the equity securities we receive or invest in may be subject to restrictions on resale during periods in which it could be advantageous to sell them. |
• | Preferred securities may include provisions that permit the issuer, at its discretion, to defer distributions for a stated period without any adverse consequences to the issuer. If we own a preferred security that is deferring its distributions, we may be required to report income for tax purposes before we receive such distributions. |
• | Preferred securities are subordinated to debt in terms of priority to income and liquidation payments, and therefore will be subject to greater credit risk than debt. |
• | Preferred securities may be substantially less liquid than many other securities, such as common stock or U.S. government securities. |
• | Generally, preferred security holders have no voting rights with respect to the issuing company, subject to limited exceptions. |
• | Our debt investments may be in the form of unsecured loans, therefore our liens on the collateral, if any, are subordinated to those of the senior secured debt of the portfolio companies, if any. As a result, we may not be able to control remedies with respect to the collateral. |
• | The collateral may not be valuable enough to satisfy all of the obligations under our secured loan, particularly after giving effect to the repayment of secured debt of the portfolio company that ranks senior to our loan. |
• | Bankruptcy laws may limit our ability to realize value from the collateral and may delay the realization process. |
• | Our rights in the collateral may be adversely affected by the failure to perfect security interests in the collateral. |
• | The need to obtain regulatory and contractual consents could impair or impede how effectively the collateral would be liquidated and could affect the value received. |
• | Some or all of the collateral may be illiquid and may have no readily ascertainable market value. The liquidity and value of the collateral could be impaired as a result of changing economic conditions, competition, and other factors, including the availability of suitable buyers. |
• | become delinquent in the payment of an outstanding obligation; |
• | defaulted on a pre-existing debt obligation; |
• | taken on additional debt; or |
• | sustained other adverse financial events. |
• | national economic conditions; |
• | regional and local economic conditions (which may be adversely impacted by plant closings, business layoffs, industry slow-downs, weather conditions, natural disasters, and other factors); |
• | local real estate conditions (such as over-supply of or insufficient demand for office space); |
• | changing demographics; |
• | perceptions by prospective tenants of the convenience, services, safety, and attractiveness of a property; |
• | the ability of property managers to provide capable management and adequate maintenance; |
• | the quality of a property’s construction and design; |
• | increases in costs of maintenance, insurance, and operations (including energy costs and real estate taxes); |
• | changes in applicable laws or regulations (including tax laws, zoning laws, or building codes); |
• | potential environmental and other legal liabilities; |
• | the level of financing used by NPRC in respect of its properties, increases in interest rate levels on such financings and the risk that NPRC will default on such financings, each of which increases the risk of loss to us; |
• | the availability and cost of refinancing; |
• | the ability to find suitable tenants for a property and to replace any departing tenants with new tenants; |
• | potential instability, default or bankruptcy of tenants in the properties owned by NPRC; |
• | potential limited number of prospective buyers interested in purchasing a property that NPRC wishes to sell; and |
• | the relative illiquidity of real estate investments in general, which may make it difficult to sell a property at an attractive price or within a reasonable time frame. |
• | The higher interest rates of OID and PIK instruments reflect the payment deferral and increased credit risk associated with these instruments, and OID and PIK instruments generally represent a significantly higher credit risk than coupon loans. |
• | Even if the accounting conditions for income accrual are met, the borrower could still default when our actual collection is supposed to occur at the maturity of the obligation. |
• | OID and PIK instruments may have unreliable valuations because their continuing accruals require continuing judgments about the collectibility of the deferred payments and the value of any associated collateral. OID and PIK income may also create uncertainty about the source of our cash distributions. |
• | A likelihood of greater volatility in the net asset value and market price of our common stock; |
• | Diminished operating flexibility as a result of asset coverage or investment portfolio composition requirements required by lenders or investors that are more stringent than those imposed by the 1940 Act; |
• | The possibility that investments will have to be liquidated at less than full value or at inopportune times to comply with debt covenants or to pay interest or dividends on the leverage; |
• | Increased operating expenses due to the cost of leverage, including issuance and servicing costs; |
• | Convertible or exchangeable securities, such as the Convertible Notes (as defined below) outstanding or those issued in the future may have rights, preferences and privileges more favorable than those of our common stock; |
• | Subordination to lenders’ superior claims on our assets as a result of which lenders will be able to receive proceeds available in the case of our liquidation before any proceeds will be distributed to our stockholders; |
• | Difficulty meeting our payment and other obligations under the Unsecured Notes (as defined below) and our other outstanding debt; |
• | The occurrence of an event of default if we fail to comply with the financial and/or other restrictive covenants contained in our debt agreements, including the credit agreement and each indenture governing the Unsecured Notes, which event of default could result in all or some of our debt becoming immediately due and payable; |
• | Reduced availability of our cash flow to fund investments, acquisitions and other general corporate purposes, and limiting our ability to obtain additional financing for these purposes; |
• | The risk of increased sensitivity to interest rate increases on our indebtedness with variable interest rates, including borrowings under our amended senior credit facility; and |
• | Reduced flexibility in planning for, or reacting to, and increasing our vulnerability to, changes in our business, the industry in which we operate and the general economy. |
• | In addition, our ability to meet our payment and other obligations of the Unsecured Notes and our credit facility depends on our ability to generate significant cash flow in the future. This, to some extent, is subject to general economic, financial, competitive, legislative and regulatory factors as well as other factors that are beyond our control. We cannot provide assurance that our business will generate cash flow from operations, or that future borrowings will be available to us under our existing credit facility or otherwise, in an amount sufficient to enable us to meet our payment obligations under the Unsecured Notes and our other debt and to fund other liquidity needs. If we are not able to generate sufficient cash flow to service our debt obligations, we may need to refinance or restructure our debt, including the Unsecured Notes, sell assets, reduce or delay capital investments, or seek to raise additional capital. If we are unable to implement one or more of these alternatives, we may not be able to meet our payment obligations under the Unsecured Notes and our other debt. |
Assumed Return on Our Portfolio (net of expenses) | (10.0 | )% | (5.0 | )% | — | % | 5.0 | % | 10.0 | % | |||||
Corresponding Return to Stockholder | (20.1 | )% | (11.8 | )% | (3.5 | )% | 4.8 | % | 13.1 | % |
• | Restrictions on the level of indebtedness that we are permitted to incur in relation to the value of our assets; |
• | Restrictions on our ability to incur liens; and |
• | Maintenance of a minimum level of stockholders’ equity. |
• | the time remaining to the maturity of these debt securities; |
• | the outstanding principal amount of debt securities with terms identical to these debt securities; |
• | the ratings assigned by national statistical ratings agencies; |
• | the general economic environment; |
• | the supply of debt securities trading in the secondary market, if any; |
• | the redemption or repayment features, if any, of these debt securities; |
• | the level, direction and volatility of market interest rates generally; and |
• | market rates of interest higher or lower than rates borne by the debt securities. |
• | significant volatility in the market price and trading volume of securities of business development companies or other companies in the energy industry, which are not necessarily related to the operating performance of these companies; |
• | price and volume fluctuations in the overall stock market from time to time; |
• | changes in regulatory policies or tax guidelines, particularly with respect to RICs or business development companies; |
• | loss of RIC qualification; |
• | changes in earnings or variations in operating results; |
• | changes in the value of our portfolio of investments; |
• | any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts; |
• | departure of one or more of Prospect Capital Management’s key personnel; |
• | operating performance of companies comparable to us; |
• | short-selling pressure with respect to shares of our common stock or BDCs generally; |
• | future sales of our securities convertible into or exchangeable or exercisable for our common stock or the conversion of such securities, including the Convertible Notes; |
• | uncertainty surrounding the strength of the U.S. economic recovery; |
• | concerns regarding European sovereign debt; |
• | changes in prevailing interest rates; |
• | litigation matters; |
• | general economic trends and other external factors; and |
• | loss of a major funding source. |
• | The Maryland Business Combination Act, which, subject to certain limitations, prohibits certain business combinations between us and an “interested stockholder” (defined generally as any person who beneficially owns 10% or more of the voting power of the common stock or an affiliate thereof) for five years after the most recent date on which the stockholder becomes an interested stockholder and, thereafter, imposes special minimum price provisions and special stockholder voting requirements on these combinations. |
• | The Maryland Control Share Acquisition Act, which provides that “control shares” of a Maryland corporation (defined as shares of common stock which, when aggregated with other shares of common stock controlled by the stockholder, entitles the stockholder to exercise one of three increasing ranges of voting power in electing directors, as described more fully below) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of ownership or control of “control shares”) have no voting rights except to the extent approved by stockholders by the affirmative vote of at least two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares of common stock. |
• | our future operating results; |
• | our business prospects and the prospects of our portfolio companies; |
• | the impact of investments that we expect to make; |
• | our contractual arrangements and relationships with third parties; |
• | the dependence of our future success on the general economy and its impact on the industries in which we invest; |
• | the ability of our portfolio companies to achieve their objectives; |
June 30, 2018 | June 30, 2017 | ||||||||||||||||||||
Level of Control | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
Control Investments | $ | 2,300,526 | 39.5 | % | $ | 2,404,326 | 42.0 | % | $ | 1,840,731 | 30.8 | % | $ | 1,911,775 | 32.7 | % | |||||
Affiliate Investments | 55,637 | 0.9 | % | 58,436 | 1.0 | % | 22,957 | 0.4 | % | 11,429 | 0.2 | % | |||||||||
Non-Control/Non-Affiliate Investments | 3,475,295 | 59.6 | % | 3,264,517 | 57.0 | % | 4,117,868 | 68.8 | % | 3,915,101 | 67.1 | % | |||||||||
Total Investments | $ | 5,831,458 | 100.0 | % | $ | 5,727,279 | 100.0 | % | $ | 5,981,556 | 100.0 | % | $ | 5,838,305 | 100.0 | % |
June 30, 2018 | June 30, 2017 | ||||||||||||||||||||
Type of Investment | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
Revolving Line of Credit | $ | 38,659 | 0.7 | % | $ | 38,559 | 0.7 | % | $ | 27,409 | 0.5 | % | $ | 27,409 | 0.5 | % | |||||
Senior Secured Debt | 2,602,018 | 44.6 | % | 2,481,353 | 43.3 | % | 2,940,163 | 49.2 | % | 2,798,796 | 47.9 | % | |||||||||
Subordinated Secured Debt | 1,318,028 | 22.6 | % | 1,260,525 | 22.0 | % | 1,160,019 | 19.4 | % | 1,107,040 | 19.0 | % | |||||||||
Subordinated Unsecured Debt | 38,548 | 0.7 | % | 32,945 | 0.6 | % | 37,934 | 0.6 | % | 44,434 | 0.8 | % | |||||||||
Small Business Loans | 30 | — | % | 17 | — | % | 8,434 | 0.1 | % | 7,964 | 0.1 | % | |||||||||
CLO Debt | 6,159 | 0.1 | % | 6,159 | 0.1 | % | — | — | % | — | — | % | |||||||||
CLO Residual Interest | 1,096,768 | 18.8 | % | 954,035 | 16.7 | % | 1,150,006 | 19.2 | % | 1,079,712 | 18.5 | % | |||||||||
Preferred Stock | 92,346 | 1.6 | % | 75,986 | 1.3 | % | 112,394 | 1.9 | % | 83,209 | 1.4 | % | |||||||||
Common Stock | 445,364 | 7.6 | % | 517,858 | 9.0 | % | 295,200 | 4.9 | % | 391,374 | 6.7 | % | |||||||||
Membership Interest | 193,538 | 3.3 | % | 257,799 | 4.5 | % | 249,997 | 4.2 | % | 206,012 | 3.5 | % | |||||||||
Participating Interest(1) | — | — | % | 101,126 | 1.8 | % | — | — | % | 91,491 | 1.6 | % | |||||||||
Escrow Receivable | — | — | % | 917 | — | % | — | — | % | 864 | — | % | |||||||||
Total Investments | $ | 5,831,458 | 100.0 | % | $ | 5,727,279 | 100.0 | % | $ | 5,981,556 | 100.0 | % | $ | 5,838,305 | 100.0 | % |
(1) | Participating Interest includes our participating equity investments, such as net profits interests, net operating income interests, net revenue interests, and overriding royalty interests. |
June 30, 2018 | June 30, 2017 | ||||||||||||||||||||
Type of Investment | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
First Lien | $ | 2,632,843 | 51.6 | % | $ | 2,512,078 | 52.6 | % | $ | 2,959,738 | 55.6 | % | $ | 2,818,371 | 55.6 | % | |||||
Second Lien | 1,325,862 | 26.0 | % | 1,268,359 | 26.6 | % | 1,167,853 | 21.9 | % | 1,114,874 | 22.0 | % | |||||||||
Unsecured | 38,548 | 0.8 | % | 32,945 | 0.7 | % | 37,934 | 0.7 | % | 44,434 | 0.9 | % | |||||||||
Small Business Loans | 30 | — | % | 17 | — | % | 8,434 | 0.2 | % | 7,964 | 0.2 | % | |||||||||
CLO Debt | 6,159 | 0.1 | % | 6,159 | 0.1 | % | — | — | % | — | — | % | |||||||||
CLO Residual Interest | 1,096,768 | 21.5 | % | 954,035 | 20.0 | % | 1,150,006 | 21.6 | % | 1,079,712 | 21.3 | % | |||||||||
Total Debt Investments | $ | 5,100,210 | 100.0 | % | $ | 4,773,593 | 100.0 | % | $ | 5,323,965 | 100.0 | % | $ | 5,065,355 | 100.0 | % |
June 30, 2018 | June 30, 2017 | ||||||||||||||||||||
Geographic Location | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
Canada | $ | 16,809 | 0.3 | % | $ | 17,816 | 0.3 | % | $ | 9,831 | 0.2 | % | $ | 10,000 | 0.2 | % | |||||
Cayman Islands | 1,102,927 | 18.9 | % | 960,194 | 16.8 | % | 1,150,006 | 19.2 | % | 1,079,712 | 18.5 | % | |||||||||
France | 12,490 | 0.2 | % | 12,334 | 0.2 | % | 9,755 | 0.2 | % | 8,794 | 0.2 | % | |||||||||
MidAtlanticUS | 410,644 | 7.0 | % | 410,644 | 7.2 | % | — | — | % | — | — | % | |||||||||
Midwest US | 395,622 | 6.8 | % | 413,758 | 7.2 | % | 605,417 | 10.1 | % | 678,766 | 11.6 | % | |||||||||
Northeast US | 677,204 | 11.6 | % | 701,851 | 12.3 | % | 786,552 | 13.1 | % | 823,616 | 14.1 | % | |||||||||
Northwest US | 103,906 | 1.8 | % | 90,288 | 1.6 | % | 281,336 | 4.7 | % | 207,962 | 3.6 | % | |||||||||
Puerto Rico | 84,713 | 1.5 | % | 83,507 | 1.5 | % | 83,410 | 1.4 | % | 83,410 | 1.4 | % | |||||||||
Southeast US | 1,243,430 | 21.3 | % | 1,524,379 | 26.6 | % | 1,367,606 | 22.9 | % | 1,412,351 | 24.2 | % | |||||||||
Southwest US | 723,038 | 12.4 | % | 599,914 | 10.4 | % | 616,008 | 10.3 | % | 558,368 | 9.5 | % | |||||||||
Western US | 1,060,675 | 18.2 | % | 912,594 | 15.9 | % | 1,071,635 | 17.9 | % | 975,326 | 16.7 | % | |||||||||
Total Investments | $ | 5,831,458 | 100.0 | % | $ | 5,727,279 | 100.0 | % | $ | 5,981,556 | 100.0 | % | $ | 5,838,305 | 100.0 | % |
June 30, 2018 | June 30, 2017 | ||||||||||||||||||||
Industry | Cost | % of Portfolio | Fair Value | % of Portfolio | Cost | % of Portfolio | Fair Value | % of Portfolio | |||||||||||||
Aerospace & Defense | $ | 69,837 | 1.2 | % | $ | 82,278 | 1.4 | % | $ | 69,837 | 1.2 | % | $ | 71,318 | 1.2 | % | |||||
Air Freight & Logistics | — | — | % | — | — | % | 51,952 | 0.9 | % | 51,952 | 0.9 | % | |||||||||
Auto Components | 12,681 | 0.2 | % | 12,887 | 0.2 | % | 30,222 | 0.5 | % | 30,460 | 0.5 | % | |||||||||
Building Products | 9,905 | 0.2 | % | 10,000 | 0.2 | % | — | — | % | — | — | % | |||||||||
Capital Markets | 19,799 | 0.3 | % | 20,000 | 0.3 | % | 14,796 | 0.2 | % | 15,000 | 0.3 | % | |||||||||
Chemicals | — | — | % | — | — | % | 17,489 | 0.3 | % | 16,699 | 0.3 | % | |||||||||
Commercial Services & Supplies | 386,187 | 6.6 | % | 330,024 | 5.8 | % | 354,185 | 5.9 | % | 312,634 | 5.3 | % | |||||||||
Communications Equipment | 39,860 | 0.7 | % | 40,000 | 0.7 | % | — | — | % | — | — | % | |||||||||
Construction & Engineering | 64,415 | 1.1 | % | 50,797 | 0.9 | % | 62,258 | 1.0 | % | 32,509 | 0.6 | % | |||||||||
Consumer Finance | 485,381 | 8.3 | % | 586,978 | 10.2 | % | 469,869 | 7.9 | % | 502,941 | 8.6 | % | |||||||||
Distributors | 470,750 | 8.1 | % | 402,465 | 7.0 | % | 140,847 | 2.4 | % | 83,225 | 1.4 | % | |||||||||
Diversified Consumer Services | 173,695 | 3.0 | % | 163,152 | 2.8 | % | 188,912 | 3.2 | % | 190,662 | 3.3 | % | |||||||||
Diversified Telecommunication Services | — | — | % | — | — | % | 4,395 | 0.1 | % | 4,410 | 0.1 | % | |||||||||
Electronic Equipment, Instruments & Components | 54,805 | 0.9 | % | 62,964 | 1.1 | % | 37,696 | 0.6 | % | 51,846 | 0.9 | % | |||||||||
Energy Equipment & Services | 257,371 | 4.4 | % | 170,574 | 3.0 | % | 251,019 | 4.2 | % | 131,660 | 2.3 | % | |||||||||
Equity Real Estate Investment Trusts (REITs) | 499,858 | 8.6 | % | 811,915 | 14.2 | % | 374,380 | 6.3 | % | 624,337 | 10.7 | % | |||||||||
Food Products | 9,884 | 0.2 | % | 9,886 | 0.2 | % | — | — | % | — | — | % | |||||||||
Health Care Equipment & Supplies | 43,279 | 0.7 | % | 43,279 | 0.8 | % | — | — | % | — | — | % | |||||||||
Health Care Providers & Services | 421,198 | 7.2 | % | 404,130 | 7.1 | % | 422,919 | 7.2 | % | 421,389 | 7.1 | % | |||||||||
Hotels, Restaurants & Leisure | 37,295 | 0.6 | % | 37,295 | 0.6 | % | 127,638 | 2.1 | % | 103,897 | 1.8 | % | |||||||||
Hotels & Personal Products | 24,938 | 0.4 | % | 24,938 | 0.4 | % | — | — | % | — | — | % | |||||||||
Household Durables | 42,539 | 0.7 | % | 41,623 | 0.7 | % | 146,031 | 2.4 | % | 146,183 | 2.5 | % | |||||||||
Insurance | 2,986 | 0.1 | % | 2,986 | 0.1 | % | — | — | % | — | — | % | |||||||||
Internet & Direct Marketing Retail | 39,813 | 0.7 | % | 39,813 | 0.7 | % | — | — | % | — | — | % | |||||||||
Internet Software & Services | 229,717 | 4.0 | % | 229,791 | 4.0 | % | 219,348 | 3.7 | % | 219,348 | 3.8 | % | |||||||||
IT Services | 182,183 | 3.1 | % | 182,578 | 3.2 | % | 19,531 | 0.3 | % | 20,000 | 0.3 | % | |||||||||
Leisure Products | 45,531 | 0.8 | % | 45,626 | 0.8 | % | 44,085 | 0.7 | % | 44,204 | 0.8 | % | |||||||||
Machinery | 35,488 | 0.6 | % | 31,886 | 0.6 | % | 35,488 | 0.6 | % | 32,678 | 0.6 | % | |||||||||
Marine (1) | — | — | % | — | — | % | 8,919 | 0.1 | % | 8,800 | 0.2 | % | |||||||||
Media | 143,063 | 2.5 | % | 140,365 | 2.4 | % | 469,108 | 7.8 | % | 466,500 | 8.0 | % | |||||||||
Metals & Mining | — | — | % | — | — | % | 9,953 | 0.2 | % | 10,000 | 0.2 | % | |||||||||
Online Lending | 327,159 | 5.6 | % | 243,078 | 4.2 | % | 424,350 | 7.0 | % | 370,931 | 6.3 | % | |||||||||
Paper & Forest Products | 11,328 | 0.2 | % | 11,226 | 0.2 | % | 11,295 | 0.2 | % | 11,500 | 0.2 | % | |||||||||
Personal Products | 228,575 | 3.9 | % | 165,020 | 2.9 | % | 222,698 | 3.7 | % | 192,748 | 3.3 | % | |||||||||
Pharmaceuticals | 11,882 | 0.2 | % | 12,000 | 0.2 | % | 117,989 | 2.0 | % | 117,989 | 2.0 | % | |||||||||
Professional Services | 74,272 | 1.3 | % | 76,991 | 1.3 | % | 64,242 | 1.1 | % | 64,473 | 1.1 | % | |||||||||
Real Estate Management & Development | 41,860 | 0.7 | % | 41,860 | 0.7 | % | — | — | % | — | — | % | |||||||||
Software | 66,435 | 1.1 | % | 67,265 | 1.2 | % | 56,041 | 0.9 | % | 55,150 | 0.9 | % | |||||||||
Technology Hardware, Storage & Peripherals | 12,384 | 0.2 | % | 12,500 | 0.2 | % | — | — | % | — | — | % | |||||||||
Textiles, Apparel & Luxury Goods | 46,429 | 0.8 | % | 60,220 | 1.1 | % | 285,180 | 4.8 | % | 274,206 | 4.7 | % | |||||||||
Tobacco | 14,392 | 0.3 | % | 14,392 | 0.3 | % | 14,365 | 0.2 | % | 14,431 | 0.2 | % | |||||||||
Trading Companies & Distributors | 63,863 | 1.1 | % | 56,199 | 1.0 | % | 64,513 | 1.1 | % | 64,513 | 1.1 | % | |||||||||
Transportation Infrastructure | 27,494 | 0.5 | % | 28,104 | 0.5 | % | — | — | % | — | — | % | |||||||||
Subtotal | $ | 4,728,531 | 81.1 | % | $ | 4,767,085 | 83.2 | % | $ | 4,831,550 | 80.8 | % | $ | 4,758,593 | 81.5 | % | |||||
Structured Finance (2) | $ | 1,102,927 | 18.9 | % | $ | 960,194 | 16.8 | % | $ | 1,150,006 | 19.2 | % | $ | 1,079,712 | 18.5 | % | |||||
Total Investments | $ | 5,831,458 | 100.0 | % | $ | 5,727,279 | 100.0 | % | $ | 5,981,556 | 100.0 | % | $ | 5,838,305 | 100.0 | % |
(1) | Industry includes exposure to the energy markets through our investments in Harley Marine Services, Inc. Including this investment, our overall fair value exposure to the broader energy industry, including energy equipment and services as noted above as of June 30, 2017 is $140,460. We do not hold an investment in Harley Marine Services, Inc. as of June 30, 2018. |
(2) | Our CLO investments do not have industry concentrations and as such have been separated in the table above. |
Quarter Ended | Acquisitions(1) | Dispositions(2) | ||||||
September 30, 2015 | $ | 345,743 | $ | 436,919 | ||||
December 31, 2015 | 316,145 | 354,855 | ||||||
March 31, 2016 | 23,176 | 163,641 | ||||||
June 30, 2016 | 294,038 | 383,460 | ||||||
September 30, 2016 | 347,150 | 114,331 | ||||||
December 31, 2016 | 469,537 | 644,995 | ||||||
March 31, 2017 | 449,607 | 302,513 | ||||||
June 30, 2017 | 223,176 | 352,043 | ||||||
September 30, 2017 | 222,151 | 310,894 | ||||||
December 31, 2017 | 738,737 | 1,041,126 | ||||||
March 31, 2018 | 429,928 | 116,978 | ||||||
June 30, 2018 | 339,841 | 362,287 |
(1) | Includes investments in new portfolio companies, follow-on investments in existing portfolio companies, refinancings and PIK interest. |
(2) | Includes sales, scheduled principal payments, prepayments and refinancings. |
Loan Type | Outstanding Principal Balance | Fair Value | Weighted Average Interest Rate* | |||||||
Super Prime | $ | 20,714 | $ | 20,063 | 13.8% | |||||
Prime | 63,565 | 60,554 | 17.9% | |||||||
Near Prime | 241,907 | 224,652 | 31.1% |
No. | Property Name | City | Acquisition Date | Purchase Price | Mortgage Outstanding | |||||||||
1 | Filet of Chicken | Forest Park, GA | 10/24/2012 | $ | 7,400 | $ | — | |||||||
2 | 5100 Live Oaks Blvd, LLC | Tampa, FL | 1/17/2013 | 63,400 | 46,426 | |||||||||
3 | Lofton Place, LLC | Tampa, FL | 4/30/2013 | 26,000 | 20,273 | |||||||||
4 | Arlington Park Marietta, LLC | Marietta, GA | 5/8/2013 | 14,850 | 9,650 | |||||||||
5 | NPRC Carroll Resort, LLC | Pembroke Pines, FL | 6/24/2013 | 225,000 | 175,885 | |||||||||
6 | Cordova Regency, LLC | Pensacola, FL | 11/15/2013 | 13,750 | 11,375 | |||||||||
7 | Crestview at Oakleigh, LLC | Pensacola, FL | 11/15/2013 | 17,500 | 13,845 | |||||||||
8 | Inverness Lakes, LLC | Mobile, AL | 11/15/2013 | 29,600 | 24,700 | |||||||||
9 | Kings Mill Pensacola, LLC | Pensacola, FL | 11/15/2013 | 20,750 | 17,550 | |||||||||
10 | Plantations at Pine Lake, LLC | Tallahassee, FL | 11/15/2013 | 18,000 | 14,092 | |||||||||
11 | Verandas at Rocky Ridge, LLC | Birmingham, AL | 11/15/2013 | 15,600 | 10,205 | |||||||||
12 | Matthews Reserve II, LLC | Matthews, NC | 11/19/2013 | 22,063 | 19,765 | |||||||||
13 | City West Apartments II, LLC | Orlando, FL | 11/19/2013 | 23,562 | 23,084 | |||||||||
14 | Vinings Corner II, LLC | Smyrna, GA | 11/19/2013 | 35,691 | 32,649 | |||||||||
15 | Atlanta Eastwood Village LLC | Stockbridge, GA | 12/12/2013 | 25,957 | 22,546 | |||||||||
16 | Atlanta Monterey Village LLC | Jonesboro, GA | 12/12/2013 | 11,501 | 10,969 | |||||||||
17 | Atlanta Hidden Creek LLC | Morrow, GA | 12/12/2013 | 5,098 | 4,696 | |||||||||
18 | Atlanta Meadow Springs LLC | College Park, GA | 12/12/2013 | 13,116 | 12,914 | |||||||||
19 | Atlanta Meadow View LLC | College Park, GA | 12/12/2013 | 14,354 | 12,968 | |||||||||
20 | Atlanta Peachtree Landing LLC | Fairburn, GA | 12/12/2013 | 17,224 | 15,361 | |||||||||
21 | APH Carroll Bartram Park, LLC | Jacksonville, FL | 12/31/2013 | 38,000 | 27,157 | |||||||||
22 | Crestview at Cordova, LLC | Pensacola, FL | 1/17/2014 | 8,500 | 7,785 | |||||||||
23 | APH Carroll Atlantic Beach, LLC | Atlantic Beach, FL | 1/31/2014 | 13,025 | 8,443 | |||||||||
24 | Taco Bell, OK | Yukon, OK | 6/4/2014 | 1,719 | — | |||||||||
25 | Taco Bell, MO | Marshall, MO | 6/4/2014 | 1,405 | — | |||||||||
26 | 23 Mile Road Self Storage, LLC | Chesterfield, MI | 8/19/2014 | 5,804 | 4,350 | |||||||||
27 | 36th Street Self Storage, LLC | Wyoming, MI | 8/19/2014 | 4,800 | 3,600 | |||||||||
28 | Ball Avenue Self Storage, LLC | Grand Rapids, MI | 8/19/2014 | 7,281 | 5,460 | |||||||||
29 | Ford Road Self Storage, LLC | Westland, MI | 8/29/2014 | 4,642 | 3,480 | |||||||||
30 | Ann Arbor Kalamazoo Self Storage, LLC | Ann Arbor, MI | 8/29/2014 | 4,458 | 3,345 | |||||||||
31 | Ann Arbor Kalamazoo Self Storage, LLC | Ann Arbor, MI | 8/29/2014 | 8,927 | 6,695 | |||||||||
32 | Ann Arbor Kalamazoo Self Storage, LLC | Kalamazoo, MI | 8/29/2014 | 2,363 | 1,775 | |||||||||
33 | Canterbury Green Apartments Holdings LLC | Fort Wayne, IN | 9/29/2014 | 85,500 | 74,046 | |||||||||
34 | Abbie Lakes OH Partners, LLC | Canal Winchester, OH | 9/30/2014 | 12,600 | 13,055 | |||||||||
35 | Kengary Way OH Partners, LLC | Reynoldsburg, OH | 9/30/2014 | 11,500 | 13,502 | |||||||||
36 | Lakeview Trail OH Partners, LLC | Canal Winchester, OH | 9/30/2014 | 26,500 | 23,256 | |||||||||
37 | Lakepoint OH Partners, LLC | Pickerington, OH | 9/30/2014 | 11,000 | 14,480 | |||||||||
38 | Sunbury OH Partners, LLC | Columbus, OH | 9/30/2014 | 13,000 | 14,115 | |||||||||
39 | Heatherbridge OH Partners, LLC | Blacklick, OH | 9/30/2014 | 18,416 | 18,328 |
No. | Property Name | City | Acquisition Date | Purchase Price | Mortgage Outstanding | |||||||||
40 | Jefferson Chase OH Partners, LLC | Blacklick, OH | 9/30/2014 | 13,551 | 17,200 | |||||||||
41 | Goldenstrand OH Partners, LLC | Hilliard, OH | 10/29/2014 | 7,810 | 9,600 | |||||||||
42 | Jolly Road Self Storage, LLC | Okemos, MI | 1/16/2015 | 7,492 | 5,620 | |||||||||
43 | Eaton Rapids Road Self Storage, LLC | Lansing West, MI | 1/16/2015 | 1,741 | 1,305 | |||||||||
44 | Haggerty Road Self Storage, LLC | Novi, MI | 1/16/2015 | 6,700 | 5,025 | |||||||||
45 | Waldon Road Self Storage, LLC | Lake Orion, MI | 1/16/2015 | 6,965 | 5,225 | |||||||||
46 | Tyler Road Self Storage, LLC | Ypsilanti, MI | 1/16/2015 | 3,507 | 2,630 | |||||||||
47 | SSIL I, LLC | Aurora, IL | 11/5/2015 | 34,500 | 26,450 | |||||||||
48 | Vesper Tuscaloosa, LLC | Tuscaloosa, AL | 9/28/2016 | 54,500 | 43,120 | |||||||||
49 | Vesper Iowa City, LLC | Iowa City, IA | 9/28/2016 | 32,750 | 24,825 | |||||||||
50 | Vesper Corpus Christi, LLC | Corpus Christi, TX | 9/28/2016 | 14,250 | 10,800 | |||||||||
51 | Vesper Campus Quarters, LLC | Corpus Christi, TX | 9/28/2016 | 18,350 | 14,175 | |||||||||
52 | Vesper College Station, LLC | College Station, TX | 9/28/2016 | 41,500 | 32,057 | |||||||||
53 | Vesper Kennesaw, LLC | Kennesaw, GA | 9/28/2016 | 57,900 | 48,668 | |||||||||
54 | Vesper Statesboro, LLC | Statesboro, GA | 9/28/2016 | 7,500 | 6,076 | |||||||||
55 | Vesper Manhattan KS, LLC | Manhattan, KS | 9/28/2016 | 23,250 | 15,145 | |||||||||
56 | JSIP Union Place, LLC | Franklin, MA | 12/7/2016 | 64,750 | 51,800 | |||||||||
57 | 9220 Old Lantern Way, LLC | Laurel, MD | 1/30/2017 | 187,250 | 153,580 | |||||||||
58 | 7915 Baymeadows Circle Owner, LLC | Jacksonville, FL | 10/31/2017 | 95,700 | 76,560 | |||||||||
59 | 8025 Baymeadows Circle Owner, LLC | Jacksonville, FL | 10/31/2017 | 15,300 | 12,240 | |||||||||
60 | 23275 Riverside Drive Owner, LLC | Southfield, MI | 11/8/2017 | 52,000 | 44,044 | |||||||||
61 | 23741 Pond Road Owner, LLC | Southfield, MI | 11/8/2017 | 16,500 | 14,185 | |||||||||
62 | 150 Steeplechase Way Owner, LLC | Largo, MD | 1/10/2018 | 44,500 | 36,668 | |||||||||
63 | Laurel Pointe Holdings, LLC | Forest Park, GA | 5/9/2018 | 33,005 | 26,400 | |||||||||
64 | Bradford Ridge Holdings, LLC | Forest Park, GA | 5/9/2018 | 12,500 | 10,000 | |||||||||
65 | Olentangy Commons Owner LLC | Columbus, OH | 6/1/2018 | 113,000 | 92,876 | |||||||||
$ | 1,866,627 | $ | 1,528,099 |
Principal Outstanding | Unamortized Discount & Debt Issuance Costs | Net Carrying Value | Fair Value (1) | Effective Interest Rate | ||||||||||||||||||
Revolving Credit Facility(2) | $ | 37,000 | $ | 2,032 | $ | 37,000 | (3 | ) | $ | 37,000 | 1ML+2.25% | (6 | ) | |||||||||
2019 Notes | 101,647 | 339 | 101,308 | 103,562 | (4 | ) | 6.51 | % | (7 | ) | ||||||||||||
2020 Notes | 392,000 | 4,270 | 387,730 | 392,529 | (4 | ) | 5.38 | % | (7 | ) | ||||||||||||
2022 Notes | 328,500 | 8,465 | 320,035 | 320,084 | (4 | ) | 5.69 | % | (7 | ) | ||||||||||||
Convertible Notes | 822,147 | 809,073 | 816,175 | |||||||||||||||||||
5.00% 2019 Notes | 153,536 | 456 | 153,080 | 155,483 | (4 | ) | 5.29 | % | (7 | ) | ||||||||||||
2023 Notes | 320,000 | 4,120 | 315,880 | 328,909 | (4 | ) | 6.09 | % | (7 | ) | ||||||||||||
2024 Notes | 199,281 | 4,559 | 194,722 | 202,151 | (4 | ) | 6.74 | % | (7 | ) | ||||||||||||
2028 Notes | 55,000 | 1,872 | 53,128 | 55,220 | (4 | ) | 6.72 | % | (7 | ) | ||||||||||||
Public Notes | 727,817 | 716,810 | 741,763 | |||||||||||||||||||
Prospect Capital InterNotes® | 760,924 | 11,998 | 748,926 | 779,400 | (5 | ) | 5.76 | % | (8 | ) | ||||||||||||
Total | $ | 2,347,888 | $ | 2,311,809 | $ | 2,374,338 |
(1) | As permitted by ASC 825-10-25, we have not elected to value our Revolving Credit Facility, Convertible Notes, Public Notes and Prospect Capital InterNotes® at fair value. The fair value of these debt obligations are categorized as Level 2 under ASC 820 as of June 30, 2018. |
(2) | The maximum draw amount of the Revolving Credit facility as of June 30, 2018 is $885,000. |
(3) | Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Critical Accounting Policies and Estimates for accounting policy details. |
(4) | We use available market quotes to estimate the fair value of the Convertible Notes and Public Notes. |
(5) | The fair value of Prospect Capital InterNotes® is estimated by discounting remaining payments using current Treasury rates plus spread based on observable market inputs. |
(6) | Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation. |
(7) | The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs. For the 2024 Notes, the rate presented is a combined effective interest rate of the 2024 Notes and 2024 Notes Follow-on Program. |
(8) | For the Prospect Capital InterNotes®, the rate presented is the weighted average effective interest rate. Interest expense and deferred debt issuance costs, which are amortized on a straight-line method over the stated life of the obligation, are weighted against the average year-to-date principal balance. |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | After 5 Years | |||||||||||||||
Revolving Credit Facility | $ | 37,000 | $ | — | $ | 37,000 | $ | — | $ | — | |||||||||
Convertible Notes | 822,147 | 101,647 | 392,000 | 328,500 | — | ||||||||||||||
Public Notes | 727,817 | — | 153,536 | 320,000 | 254,281 | ||||||||||||||
Prospect Capital InterNotes® | 760,924 | — | 276,484 | 246,525 | 237,915 | ||||||||||||||
Total Contractual Obligations | $ | 2,347,888 | $ | 101,647 | $ | 859,020 | $ | 895,025 | $ | 492,196 |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | After 5 Years | |||||||||||||||
Revolving Credit Facility | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Convertible Notes | 953,153 | 136,153 | 592,000 | — | 225,000 | ||||||||||||||
Public Notes | 749,281 | — | 300,000 | — | 449,281 | ||||||||||||||
Prospect Capital InterNotes® | 980,494 | 39,038 | 325,661 | 399,490 | 216,305 | ||||||||||||||
Total Contractual Obligations | $ | 2,682,928 | $ | 175,191 | $ | 1,217,661 | $ | 399,490 | $ | 890,586 |
2019 Notes | 2020 Notes | 2022 Notes | |||||||||
Initial conversion rate(1) | 79.7766 | 80.6647 | 100.2305 | ||||||||
Initial conversion price | $ | 12.54 | $ | 12.40 | $ | 9.98 | |||||
Conversion rate at June 30, 2018(1)(2) | 79.8360 | 80.6670 | 100.2305 | ||||||||
Conversion price at June 30, 2018(2)(3) | $ | 12.53 | $ | 12.40 | $ | 9.98 | |||||
Last conversion price calculation date | 12/21/2017 | 4/11/2018 | 4/11/2018 | ||||||||
Dividend threshold amount (per share)(4) | $ | 0.110025 | $ | 0.110525 | $ | 0.083330 |
(1) | Conversion rates denominated in shares of common stock per $1 principal amount of the Convertible Notes converted. |
(2) | Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date. |
(3) | The conversion price will increase only if the current monthly dividends (per share) exceed the dividend threshold amount (per share). |
(4) | The conversion rate is increased if monthly cash dividends paid to common shares exceed the monthly dividend threshold amount, subject to adjustment. Current dividend rates are at or below the minimum dividend threshold amount for further conversion rate adjustments for all bonds. |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | |||||||
5 | $ | 46,893 | 4.00% - 5.00% | 4.24 | % | July 15, 2022 - June 15, 2023 | |||||
7 | 4,684 | 4.75% - 5.25% | 5.06 | % | July 15, 2024 - June 15, 2025 | ||||||
8 | 24,720 | 4.50% - 5.25% | 4.65 | % | August 15, 2025 - May 15, 2026 | ||||||
$ | 76,297 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | |||||||
5 | $ | 138,882 | 4.75% - 5.50% | 5.08 | % | July 15, 2021 - June 15, 2022 | |||||
$ | 138,882 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | |||||||
5 | $ | 228,835 | 4.00% – 5.50% | 4.92 | % | July 15, 2020 - June 15, 2023 | |||||
5.2 | 4,440 | 4.63% | 4.63 | % | August 15, 2020 - September 15, 2020 | ||||||
5.3 | 2,636 | 4.63% | 4.63 | % | September 15, 2020 | ||||||
5.5 | 86,097 | 4.25% – 4.75% | 4.61 | % | May 15, 2020 - November 15, 2020 | ||||||
6 | 2,182 | 4.88% | 4.88 | % | April 15, 2021 - May 15, 2021 | ||||||
6.5 | 38,832 | 5.10% – 5.25% | 5.23 | % | December 15, 2021 - May 15, 2022 | ||||||
7 | 147,349 | 4.00% – 5.75% | 5.05 | % | January 15, 2020 - June 15, 2025 | ||||||
7.5 | 1,996 | 5.75% | 5.75 | % | February 15, 2021 | ||||||
8 | 24,720 | 4.50% – 5.25% | 4.65 | % | August 15, 2025 - May 15, 2026 | ||||||
10 | 37,424 | 5.34% – 7.00% | 6.19 | % | March 15, 2022 - December 15, 2025 | ||||||
12 | 2,978 | 6.00% | 6.00 | % | November 15, 2025 - December 15, 2025 | ||||||
15 | 17,163 | 5.25% – 6.00% | 5.35 | % | May 15, 2028 - November 15, 2028 | ||||||
18 | 20,677 | 4.13% – 6.25% | 5.55 | % | December 15, 2030 - August 15, 2031 | ||||||
20 | 4,120 | 5.75% – 6.00% | 5.89 | % | November 15, 2032 - October 15, 2033 | ||||||
25 | 33,139 | 6.25% – 6.50% | 6.39 | % | August 15, 2038 - May 15, 2039 | ||||||
30 | 108,336 | 5.50% – 6.75% | 6.24 | % | November 15, 2042 - October 15, 2043 | ||||||
$ | 760,924 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | ||||||||
4 | $ | 39,038 | 3.75% - 4.00% | 3.92 | % | November 15, 2017 - May 15, 2018 | ||||||
5 | 354,805 | 4.25% - 5.50% | 5.00 | % | July 15, 2018 - June 15, 2022 | |||||||
5.2 | 4,440 | 4.63% | 4.63 | % | August 15, 2020 - September 15, 2020 | |||||||
5.3 | 2,686 | 4.63 | % | 4.63 | % | September 15, 2020 | ||||||
5.4 | 5,000 | 4.75 | % | 4.75 | % | August 15, 2019 | ||||||
5.5 | 109,068 | 4.25% - 5.00% | 4.67 | % | February 15, 2019 - November 15, 2020 | |||||||
6 | 2,182 | 4.88 | % | 4.88 | % | April 15, 2021 - May 15, 2021 | ||||||
6.5 | 40,702 | 5.10% - 5.50% | 5.24 | % | February 15, 2020 - May 15, 2022 | |||||||
7 | 191,356 | 4.00% - 6.55% | 5.38 | % | June 15, 2019 - December 15, 2022 | |||||||
7.5 | 1,996 | 5.75 | % | 5.75 | % | February 15, 2021 | ||||||
10 | 37,509 | 4.27% - 7.00% | 6.20 | % | March 15, 2022 - December 15, 2025 | |||||||
12 | 2,978 | 6.00 | % | 6.00 | % | November 15, 2025 - December 15, 2025 | ||||||
15 | 17,245 | 5.25% - 6.00% | 5.36 | % | May 15, 2028 - November 15, 2028 | |||||||
18 | 21,532 | 4.13% - 6.25% | 5.47 | % | December 15, 2030 - August 15, 2031 | |||||||
20 | 4,248 | 5.63% - 6.00% | 5.84 | % | November 15, 2032 - October 15, 2033 | |||||||
25 | 34,218 | 6.25% - 6.50% | 6.39 | % | August 15, 2038 - May 15, 2039 | |||||||
30 | 111,491 | 5.50% - 6.75% | 6.22 | % | November 15, 2042 - October 15, 2043 | |||||||
$ | 980,494 |
June 30, 2018 | June 30, 2017 | |||||||
Net assets | $ | 3,407,047 | $ | 3,354,952 | ||||
Shares of common stock issued and outstanding | 364,409,938 | 360,076,933 | ||||||
Net asset value per share | $ | 9.35 | $ | 9.32 |
Year Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Interest income | $ | 607,012 | $ | 668,717 | $ | 731,618 | |||||
Dividend income | 13,046 | 5,679 | 26,501 | ||||||||
Other income | 37,787 | 26,650 | 33,854 | ||||||||
Total investment income | $ | 657,845 | $ | 701,046 | $ | 791,973 | |||||
Average debt principal of performing interest bearing investments(1) | $ | 5,474,563 | $ | 5,706,090 | $ | 6,013,754 | |||||
Weighted average interest rate earned on performing interest bearing investments (1) | 11.09 | % | 11.72 | % | 12.17 | % | |||||
Average debt principal of all interest bearing investments(2) | $ | 5,792,662 | $ | 5,977,050 | $ | 6,013,754 | |||||
Weighted average interest rate earned on all interest bearing investments(2) | 10.48 | % | 11.19 | % | 12.17 | % |
Year Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Interest on borrowings | $ | 134,270 | $ | 142,819 | $ | 146,659 | |||||
Amortization of deferred financing costs | 12,063 | 13,013 | 13,561 | ||||||||
Accretion of discount on Public Notes | 226 | 269 | 200 | ||||||||
Facility commitment fees | 8,480 | 8,747 | 7,299 | ||||||||
Total interest and credit facility expenses | $ | 155,039 | $ | 164,848 | $ | 167,719 | |||||
Average principal debt outstanding | $ | 2,535,681 | $ | 2,683,254 | $ | 2,807,125 | |||||
Weighted average stated interest rate on borrowings(1) | 5.30 | % | 5.32 | % | 5.22 | % | |||||
Weighted average interest rate on borrowings(2) | 6.11 | % | 6.14 | % | 5.97 | % |
(1) | Includes only the stated interest expense. |
(2) | Includes the stated interest expense, amortization of deferred financing costs, accretion of discount on Public Notes and commitment fees on the undrawn portion of our Revolving Credit Facility. |
• | $0.06 per share for September 2018 to holders of record on September 28, 2018 with a payment date of October 18, 2018. |
• | $0.06 per share for October 2018 to holders of record on October 31, 2018 with a payment date of November 21, 2018. |
i. | fair value of investment securities, other assets and liabilities—at the spot exchange rate on the last business day of the period; and |
ii. | purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such investment transactions, income or expenses. |
1. | Each portfolio company or investment is reviewed by our investment professionals with independent valuation firms engaged by our Board of Directors. |
2. | The independent valuation firms prepare independent valuations for each investment based on their own independent assessments and issue their report. |
3. | The Audit Committee of our Board of Directors reviews and discusses with the independent valuation firms the valuation reports, and then makes a recommendation to the Board of Directors of the value for each investment. |
4. | The Board of Directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm and the Audit Committee. |
(in thousands) Basis Point Change | Interest Income | Interest Expense | Net Investment Income | Net Investment Income (1) | ||||||||||||
Up 300 basis points | $ | 97,878 | $ | 44 | $ | 97,834 | $ | 78,267 | ||||||||
Up 200 basis points | 65,354 | 30 | 65,324 | 52,259 | ||||||||||||
Up 100 basis points | 32,831 | 15 | 32,816 | 26,253 | ||||||||||||
Down 100 basis points | (28,908 | ) | (33 | ) | (28,875 | ) | (23,100 | ) |
(1) | Includes the impact of income incentive fees. See Note 13 in the accompanying Consolidated Financial Statements for more information on income incentive fees. |
• | our future operating results; |
• | our business prospects and the prospects of our portfolio companies; |
• | the impact of investments that we expect to make; |
• | our contractual arrangements and relationships with third parties; |
• | the dependence of our future success on the general economy and its impact on the industries in which we invest; |
• | the ability of our portfolio companies to achieve their objectives; |
• | difficulty in obtaining financing or raising capital, especially in the current credit and equity environment; |
• | the level and volatility of prevailing interest rates and credit spreads, magnified by the current turmoil in the credit markets; |
• | adverse developments in the availability of desirable loan and investment opportunities whether they are due to competition, regulation or otherwise; |
• | a compression of the yield on our investments and the cost of our liabilities, as well as the level of leverage available to us; |
• | our regulatory structure and tax treatment, including our ability to operate as a business development company and a regulated investment company; |
• | the adequacy of our cash resources and working capital; |
• | the timing of cash flows, if any, from the operations of our portfolio companies; |
• | the ability of the Investment Adviser to locate suitable investments for us and to monitor and administer our investments; and |
• | authoritative generally accepted accounting principles or policy changes from such standard-setting bodies as the Financial Accounting Standards Board, the Securities and Exchange Commission, Internal Revenue Service, the NASDAQ Global Select Market, and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business. |
Declaration Date | Record Date | Payment Date | Amount Per Share | Amount Distributed (in thousands) | ||||||||
5/9/2016 | 7/29/2016 | 8/18/2016 | $ | 0.083330 | $ | 29,783 | ||||||
5/9/2016 | 8/31/2016 | 9/22/2016 | 0.083330 | 29,809 | ||||||||
8/25/2016 | 9/30/2016 | 10/20/2016 | 0.083330 | 29,837 | ||||||||
8/25/2016 | 10/31/2016 | 11/17/2016 | 0.083330 | 29,863 | ||||||||
11/8/2016 | 11/30/2016 | 12/22/2016 | 0.083330 | 29,890 | ||||||||
11/8/2016 | 12/30/2016 | 1/19/2017 | 0.083330 | 29,915 | ||||||||
11/8/2016 | 1/31/2017 | 2/16/2017 | 0.083330 | 29,940 | ||||||||
2/7/2017 | 2/28/2017 | 3/23/2017 | 0.083330 | 29,963 | ||||||||
2/7/2017 | 3/31/2017 | 4/20/2017 | 0.083330 | 29,989 | ||||||||
2/7/2017 | 4/28/2017 | 5/18/2017 | 0.083330 | 29,994 | ||||||||
5/9/2017 | 5/31/2017 | 6/22/2017 | 0.083330 | 29,999 | ||||||||
5/9/2017 | 6/30/2017 | 7/20/2017 | 0.083330 | 30,005 | ||||||||
Total declared and payable for the year ended June 30, 2017 | $ | 358,987 | ||||||||||
5/9/2017 | 7/31/2017 | 8/24/2017 | $ | 0.083330 | $ | 30,011 | ||||||
5/9/2017 | 8/31/2017 | 9/21/2017 | 0.083330 | 30,017 | ||||||||
8/28/2017 | 9/29/2017 | 10/19/2017 | 0.060000 | 21,619 | ||||||||
8/28/2017 | 10/31/2017 | 11/22/2017 | 0.060000 | 21,623 | ||||||||
11/8/2017 | 11/30/2017 | 12/21/2017 | 0.060000 | 21,630 | ||||||||
11/8/2017 | 12/29/2017 | 1/18/2018 | 0.060000 | 21,659 | ||||||||
11/8/2017 | 1/31/2018 | 2/15/2018 | 0.060000 | 21,691 | ||||||||
2/7/2018 | 2/28/2018 | 3/22/2018 | 0.060000 | 21,724 | ||||||||
2/7/2018 | 3/30/2018 | 4/19/2018 | 0.060000 | 21,759 | ||||||||
2/7/2018 | 4/30/2018 | 5/24/2018 | 0.060000 | 21,797 | ||||||||
5/9/2018 | 5/31/2018 | 6/21/2018 | 0.060000 | 21,829 | ||||||||
5/9/2018 | 6/29/2018 | 7/19/2018 | 0.060000 | 21,865 | ||||||||
Total declared and payable for the year ended June 30, 2018 | $ | 277,224 |
• | $0.06 per share for July 2018 to holders of record on July 31, 2018 with a payment date of August 23, 2018; |
• | $0.06 per share for August 2018 to holders of record on August 31, 2018 with a payment date of September 20, 2018; |
• | $0.06 per share for September 2018 to holders of record on September 28, 2018 with a payment date of October 18, 2018; and |
• | $0.06 per share for October 2018 to holders of record on October 31, 2018 with a payment date of November 21, 2018. |
Credit Facility(14) | Total Amount Outstanding(1) | Asset Coverage per Unit(2) | Involuntary Liquidating Preference per Unit(3) | Average Market Value per Unit(4) | |||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 37,000 | $ | 155,503 | — | — | |||||||||
Fiscal 2017 (as of June 30, 2017) | — | — | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | — | — | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 368,700 | 18,136 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 92,000 | 69,470 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 124,000 | 34,996 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 96,000 | 22,668 | — | — | |||||||||||
Fiscal 2011 (as of June 30, 2011) | 84,200 | 18,065 | — | — | |||||||||||
Fiscal 2010 (as of June 30, 2010) | 100,300 | 8,093 | — | — | |||||||||||
Fiscal 2009 (as of June 30, 2009) | 124,800 | 5,268 | — | — | |||||||||||
2015 Notes(5) | |||||||||||||||
Fiscal 2015 (as of June 30, 2015) | $ | 150,000 | $ | 44,579 | — | — | |||||||||
Fiscal 2014 (as of June 30, 2014) | 150,000 | 42,608 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 150,000 | 28,930 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 150,000 | 14,507 | — | — | |||||||||||
Fiscal 2011 (as of June 30, 2011) | 150,000 | 10,140 | — | — | |||||||||||
2016 Notes(6) | |||||||||||||||
Fiscal 2016 (as of June 30, 2016) | $ | 167,500 | $ | 36,677 | — | — | |||||||||
Fiscal 2015 (as of June 30, 2015) | 167,500 | 39,921 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 167,500 | 38,157 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 167,500 | 25,907 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 167,500 | 12,992 | — | — | |||||||||||
Fiscal 2011 (as of June 30, 2011) | 172,500 | 8,818 | — | — | |||||||||||
2017 Notes(7) | |||||||||||||||
Fiscal 2017 (as of June 30, 2017) | $ | 50,734 | $ | 118,981 | — | — | |||||||||
Fiscal 2016 (as of June 30, 2016) | 129,500 | 47,439 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 130,000 | 51,437 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 130,000 | 49,163 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 130,000 | 33,381 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 130,000 | 16,739 | — | — | |||||||||||
2018 Notes(8) | |||||||||||||||
Fiscal 2017 (as of June 30, 2017) | $ | 85,419 | $ | 70,668 | — | — | |||||||||
Fiscal 2016 (as of June 30, 2016) | 200,000 | 30,717 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 200,000 | 33,434 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 200,000 | 31,956 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 200,000 | 21,697 | — | — | |||||||||||
Total Amount Outstanding(1) | Asset Coverage per Unit(2) | Involuntary Liquidating Preference per Unit(3) | Average Market Value per Unit(4) | ||||||||||||
2019 Notes | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 101,647 | $ | 56,604 | — | — | |||||||||
Fiscal 2017 (as of June 30, 2017) | 200,000 | 30,182 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 200,000 | 30,717 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 200,000 | 33,434 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 200,000 | 31,956 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 200,000 | 21,697 | — | — | |||||||||||
5.00% 2019 Notes(12) | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 153,536 | $ | 37,474 | — | — | |||||||||
Fiscal 2017 (as of June 30, 2017) | 300,000 | 20,121 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 300,000 | 20,478 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 300,000 | 22,289 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 300,000 | 21,304 | — | — | |||||||||||
2020 Notes | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 392,000 | $ | 14,678 | — | — | |||||||||
Fiscal 2017 (as of June 30, 2017) | 392,000 | 15,399 | |||||||||||||
Fiscal 2016 (as of June 30, 2016) | 392,000 | 15,672 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 392,000 | 17,058 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 400,000 | 15,978 | — | — | |||||||||||
6.95% 2022 Notes(9) | |||||||||||||||
Fiscal 2014 (as of June 30, 2014) | $ | 100,000 | $ | 63,912 | — | $ | 1,038 | ||||||||
Fiscal 2013 (as of June 30, 2013) | 100,000 | 43,395 | — | 1,036 | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 100,000 | 21,761 | — | 996 | |||||||||||
2022 Notes | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 328,500 | $ | 17,515 | — | — | |||||||||
Fiscal 2017 (as of June 30, 2017) | 225,000 | 26,828 | — | — | |||||||||||
2023 Notes(10) | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 318,675 | $ | 18,055 | — | — | |||||||||
Fiscal 2017 (as of June 30, 2017) | 248,507 | 24,291 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 248,293 | 24,742 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 248,094 | 26,953 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 247,881 | 25,783 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 247,725 | 17,517 | — | — | |||||||||||
2024 Notes | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 199,281 | $ | 28,872 | — | $ | 1,029 | ||||||||
Fiscal 2017 (as of June 30, 2017) | 199,281 | 30,291 | — | 1,027 | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 161,364 | 38,072 | — | 951 | |||||||||||
2028 Notes | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 55,000 | $ | 104,611 | — | 1,004 | |||||||||
Total Amount Outstanding(1) | Asset Coverage per Unit(2) | Involuntary Liquidating Preference per Unit(3) | Average Market Value per Unit(4) | ||||||||||||
Prospect Capital InterNotes®(12) | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 760,924 | $ | 7,561 | — | — | |||||||||
Fiscal 2017 (as of June 30, 2017) | 980,494 | 6,156 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 908,808 | 6,760 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 827,442 | 8,081 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 785,670 | 8,135 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 363,777 | 11,929 | — | — | |||||||||||
All Senior Securities(10)(11)(12)(13) | |||||||||||||||
Fiscal 2018 (as of June 30, 2018) | $ | 2,346,563 | $ | 2,452 | — | — | |||||||||
Fiscal 2017 (as of June 30, 2017) | 2,681,435 | 2,251 | — | — | |||||||||||
Fiscal 2016 (as of June 30, 2016) | 2,707,465 | 2,269 | — | — | |||||||||||
Fiscal 2015 (as of June 30, 2015) | 2,983,736 | 2,241 | — | — | |||||||||||
Fiscal 2014 (as of June 30, 2014) | 2,773,051 | 2,305 | — | — | |||||||||||
Fiscal 2013 (as of June 30, 2013) | 1,683,002 | 2,578 | — | — | |||||||||||
Fiscal 2012 (as of June 30, 2012) | 664,138 | 3,277 | — | — |
(1) | Except as noted, the total amount of each class of senior securities outstanding at the end of the year/period presented (in 000’s). |
(2) | The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit. |
(3) | This column is inapplicable. |
(4) | This column is inapplicable, except for the 6.95% 2022 Notes, the 2024 Notes and the 2028 Notes. The average market value per unit is calculated as an average of quarter-end prices and shown as the market value per $1,000 of indebtedness. |
(5) | We repaid the outstanding principal amount of the 2015 Notes on December 15, 2015. |
(6) | We repaid the outstanding principal amount of the 2016 Notes on August 15, 2016. |
(7) | We repaid the outstanding principal amount of the 2017 Notes on October 15, 2017. |
(8) | We repaid the outstanding principal amount of the 2018 Notes on March 15, 2018. |
(9) | We redeemed the 6.95% 2022 Notes on May 15, 2015. |
(10) | For all fiscal years ended June 30th, the notes are presented net of unamortized discount. |
(11) | While we do not consider commitments to fund under revolving arrangements to be Senior Securities, if we were to elect to treat such unfunded commitments, which were $29,675 as of June 30, 2018 as Senior Securities for purposes of Section 18 of the 1940 Act, our asset coverage per unit would be $2,434. |
(12) | We have provided notice to call on July 5, 2018 which settled on August 15, 2018, $2,589 of our Prospect Capital InterNotes® at par maturing on February 15, 2020, with a weighted average rate of 4.00%. We have provided notice to call on August 8, 2018 with settlement on September 15, 2018, $26,771 of our Prospect Capital InterNotes® at par maturing between March 15, 2020 and September 15, 2020, with a weighted average rate of 4.77%. We have provided notice to call on October 12, 2018 with settlement on November 15, 2018, $70,100 of our Prospect Capital InterNotes® at par maturing between March 15, 2020 and November 15, 2020, with a weighted average rate of 4.92%. We have provided notice to redeem the 5.00% 2019 Notes on August 20, 2018 in the amount of $153,536. The redemption was completed on September 26, 2018. Following the redemption, none of the 5.00% 2019 Notes are outstanding. On September 27, 2018, we issued $100,000 in aggregate principal amount of notes that mature on January 15, 2024. The 6.375% 2024 Notes bear interest at a rate of 6.375% per year. The offering closed on October 1, 2018. Total proceeds from the issuance, net of underwriting discounts, were $98,985. |
(13) | If we were to consider the additional issuance and repurchases subsequent to June 30, 2018 including all notices to redeem with settlements through October 19, 2018, our asset coverage per unit would be $2,305, or $2,285 including the effects of unfunded commitments. |
(14) | As of October 19, 2018, we had $308,000 outstanding borrowings under our credit facility. |
Stock Price | Premium (Discount) of High to NAV | Premium (Discount) of Low to NAV | Dividends Declared | ||||||||||||||||||||
NAV(1) | High(2) | Low(2) | |||||||||||||||||||||
Twelve Months Ending June 30, 2017 | |||||||||||||||||||||||
First quarter | $ | 9.60 | $ | 8.65 | $ | 7.80 | (9.9 | )% | (18.8 | )% | $ | 0.249990 | |||||||||||
Second quarter | 9.62 | 8.50 | 7.46 | (11.6 | )% | (22.5 | )% | 0.249990 | |||||||||||||||
Third quarter | 9.43 | 9.53 | 8.42 | 1.1 | % | (10.7 | )% | 0.249990 | |||||||||||||||
Fourth quarter | 9.32 | 9.40 | 7.95 | 0.9 | % | (14.7 | )% | 0.249990 | |||||||||||||||
Twelve Months Ending June 30, 2018 | |||||||||||||||||||||||
First quarter | $ | 9.12 | $ | 8.34 | $ | 6.55 | (8.6 | )% | (28.2 | )% | $ | 0.226660 | |||||||||||
Second quarter | 9.28 | 7.26 | 5.56 | (21.8 | )% | (40.1 | )% | 0.180000 | |||||||||||||||
Third quarter | 9.23 | 7.01 | 6.21 | (24.1 | )% | (32.7 | )% | 0.180000 | |||||||||||||||
Fourth quarter | 9.35 | 6.93 | 6.30 | (25.9 | )% | (32.6 | )% | 0.180000 | |||||||||||||||
Twelve Months Ending June 30, 2019 | |||||||||||||||||||||||
First quarter | (3)(4) | $ | 7.58 | $ | 6.67 | (4) | (4) | $ | 0.180000 | (5) | |||||||||||||
Second quarter (through October 19, 2018) | (3)(4) | 7.27 | 7.01 | (4) | (4) | 0.060000 | (5) |
(1) | Net asset value per share is determined as of the last day in the relevant quarter and therefore may not reflect the net asset value per share on the date of the high or low sales price. The NAVs shown are based on outstanding shares of our common stock at the end of each period. |
(2) | The High/Low Stock Price is calculated as of the closing price on a given day in the applicable quarter. |
(3) | Our most recently estimated NAV per share is $9.35 on June 30, 2018. NAV per share as of September 30, 2018, may be higher or lower than $9.35 based on potential changes in valuations, issuances of securities, dividends paid and earnings for the quarters then ended. |
(4) | NAV has not yet been finally determined for any day after June 30, 2018. |
(5) | On August 28, 2018, Prospect announced the declaration of monthly dividends in the following amounts and with the following dates: |
• | $0.06 per share for September 2018 (record date of September 28, 2018 and payment date of October 18, 2018); and |
• | $0.06 per share for October 2018 (record date of October 31, 2018 and payment date of November 21, 2018). |
Title of Class | Amount Authorized | Amount Held by Registrant or for its Account | Amount Outstanding | ||||||
Common Stock | 1,000,000,000 | — | 365,480,988 |
• | Assessment of success in adhering to the portfolio company’s business plan and compliance with covenants; |
• | Regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor to discuss financial position, requirements and accomplishments; |
• | Comparisons to other portfolio companies in the industry, if any; |
• | Attendance at and participation in board meetings of the portfolio company; and |
• | Review of monthly and quarterly financial statements and financial projections for the portfolio company. |
1. | Each portfolio company or investment is reviewed by our investment professionals with independent valuation firms engaged by our Board of Directors. |
2. | The independent valuation firms prepare independent valuations for each investment based on their own independent assessments and issue their report. |
3. | The Audit Committee of our Board of Directors reviews and discusses with the independent valuation firms the valuation reports, and then makes a recommendation to the Board of Directors of the value for each investment. |
4. | The Board of Directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm and the Audit Committee. |
Name and Age | Position(s) Held with the Company | Term of Office(1) and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund Complex(2) Overseen by Director | Other Directorships Held by Director | |||||
William J. Gremp, 75 | Director | Class II Director from 2006 to 2009; Class I Director since April 2010; Term expires 2020 | Mr. Gremp is responsible for traditional banking services, credit and lending, private equity and corporate cash management with Merrill Lynch & Co. from 1999 to present. | Three | Priority Income Fund, Inc. since October 28, 2012(3), Pathway Capital Opportunity Fund, Inc. since February 19, 2013(3) | |||||
Eugene S. Stark, 60 | Director | Class III Director since September 2008; Term expires 2019 | Principal Financial Officer, Chief Compliance Officer and Vice President—Administration of General American Investors Company, Inc. from May 2005 to present. | Three | Priority Income Fund, Inc. since October 28, 2012(3), Pathway Capital Opportunity Fund, Inc. since February 19, 2013(3) | |||||
Andrew C. Cooper, 56 | Lead Independent Director | Class II Director since February 2009; Term expires 2018 | Mr. Cooper is an entrepreneur, who over the last 15 years has founded, built, run and sold three companies. He is Co-Chief Executive Officer of Unison Energy, LLC, a company that develops, owns and operates, distributed combined heat and power co-generation solutions. | Three | Priority Income Fund, Inc. since October 28, 2012(3), Pathway Capital Opportunity Fund, Inc. since February 19, 2013(3) |
(1) | Our Board of Directors is divided into three classes of directors serving staggered three-year terms. Mr. Gremp is a Class I director with a term that will expire in 2020, Mr. Eliasek and Mr. Cooper are Class II directors with terms that will expire in 2018, and Mr. Barry and Mr. Stark are Class III directors with terms that will expire in 2019. |
(2) | The Fund Complex consists of the Company, Priority Income Fund, Inc. and Pathway Capital Opportunity Fund, Inc. |
(3) | An investment company subject to the 1940 Act. |
Name and Age | Position(s) Held with the Company | Term of Office(1) and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund Complex(2) Overseen by Director | Other Directorships Held by Director | |||||
John F. Barry III, 66(3) | Director, Chairman of the Board of Directors, and Chief Executive Officer | Class III Director since April 2004; Term expires 2019 | Chairman and Chief Executive Officer of the Company; Managing Director of Prospect Capital Management and Prospect Administration since June 2004. | One | None | |||||
M. Grier Eliasek, 45(3) | Director, Chief Operating Officer | Class II Director since June 2004; Term expires 2018 | President and Chief Operating Officer of the Company, Managing Director of Prospect Capital Management and Prospect Administration, President and CEO of Priority Income Fund, Inc., President and COO of Priority Senior Secured Income Management, LLC, President and CEO of Pathway Energy Infrastructure Fund, Inc., President and COO of Pathway Energy Infrastructure Management, LLC. | Three | Priority Income Fund, Inc. since July 31, 2012(4), Pathway Capital Opportunity Fund, Inc. since February 19, 2013(4) |
(1) | Our Board of Directors is divided into three classes of directors serving staggered three-year terms. Mr. Gremp is a Class I director with a term that will expire in 2020, Mr. Eliasek and Mr. Cooper are Class II directors with terms that will expire in 2018, and Mr. Barry and Mr. Stark are Class III directors with terms that will expire in 2019. |
(2) | The Fund Complex consists of the Company, Priority Income Fund, Inc. and Pathway Capital Opportunity Fund, Inc. |
(3) | Messrs. Barry and Eliasek are each considered an “interested person” under the 1940 Act by virtue of serving as one of our officers and having a relationship with Prospect Capital Management. |
(4) | An investment company subject to the 1940 Act. |
Name and Age | Position(s) Held with the Company | Term of Office and Length of Time Served | Principal Occupation(s) During Past Five Years | |||
Kristin Van Dask, 39 | Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary | Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary since April 2018 | Ms. Van Dask has been the Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary since April 2018. Ms. Van Dask previously served as controller at Prospect Administration LLC. Ms. Van Dask is also the Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary since April 2018 of Priority and Pathway. Ms. Van Dask is also the Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary of Priority Income Fund, Inc. and Pathway Capital Opportunity Fund, Inc. |
Name and Position | Aggregate Compensation from the Company | Pension or Retirement Benefits Accrued as Part of the Company’s Expenses(1) | Total Compensation Paid to Director/ Officer | |||||||
Interested Directors | ||||||||||
John F. Barry III(2) | None | None | None | |||||||
M. Grier Eliasek(2) | None | None | None | |||||||
Independent Directors | ||||||||||
Andrew C. Cooper(4) | $ | 150,000 | None | $ | 150,000 | |||||
William J. Gremp(5) | $ | 150,000 | None | $ | 150,000 | |||||
Eugene S. Stark(6) | $ | 150,000 | None | $ | 150,000 | |||||
Executive Officers | ||||||||||
Brian H. Oswald(2)(3) | None | None | None | |||||||
Kristin Van Dask(2)(3) | None | None | None |
(1) | We do not have a bonus, profit sharing or retirement plan, and directors do not receive any pension or retirement benefits. |
(2) | We have not paid, and we do not intend to pay, any annual cash compensation to our executive officers for their services as executive officers. Messrs. Barry and Eliasek are compensated by Prospect Capital Management from the income Prospect Capital Management receives under the management agreement between Prospect Capital Management and us. Ms. Van Dask is and, prior to being replaced as an executive officer of the Company, Mr. Oswald was, compensated from the income Prospect Administration receives under the administration agreement. |
(3) | On April 4, 2018, the Company’s Board of Directors appointed Ms. Van Dask as the Chief Financial Officer, Treasurer, Secretary and Chief Compliance Officer of the Company, effective immediately, in place of Mr. Oswald who previously served in such positions. |
(4) | Mr. Cooper joined our Board of Directors on February 12, 2009. |
(5) | Mr. Gremp joined our Board of Directors on April 1, 2010. |
(6) | Mr. Stark joined our Board of Directors on September 4, 2008. |
• | No incentive fee in any calendar quarter in which our pre-incentive fee net investment income does not exceed the hurdle rate; |
• | 100.00% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming a 7.00% annualized hurdle rate); and |
• | 20.00% of the amount of our pre-incentive fee net investment income, if any, that exceeds 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming a 7.00% annualized hurdle rate). |
Prior Quarter Net Asset Value (adjusted for stock offerings during the quarter) | $ | 3,346,396 | ||
Quarterly Hurdle Rate | 1.75 | % | ||
Current Quarter Hurdle | $ | 58,562 | ||
125% of the Quarterly Hurdle Rate | 2.1875 | % | ||
125% of the Current Quarter Hurdle | $ | 73,203 | ||
Current Quarter Pre Incentive Fee Net Investment Income | $ | 99,351 | ||
Incentive Fee—“Catch-Up” | $ | 14,678 | ||
Incentive Fee—20% in excess of 125% of the Current Quarter Hurdle | $ | 2,741 | ||
Total Current Quarter Incentive Fee | $ | 19,870 |
(1) | Represents 7% annualized hurdle rate |
(2) | Represents 2% annualized base management fee. |
(3) | Excludes organizational and offering expenses. |
(1) | Represents 7% annualized hurdle rate |
(2) | Represents 2% annualized base management fee. |
(3) | Excludes organizational and offering expenses. |
Income incentive Fee | = 100% × “Catch Up” + the greater of 0% AND (20% × (pre-incentive fee net investment income - 2.1875)% = (100% × (2% - 1.75%)) + 0% = 100% × 0.25% + 0% = 0.25%) = 0.25% |
(1) | Represents 7% annualized hurdle rate. |
(2) | Represents 2% annualized base management fee. |
(3) | Excludes organizational and offering expenses. |
Income incentive Fee | = 100% × “Catch Up” + the greater of 0% AND (20% × (pre-incentive fee net))investment income - 2.1875)% | |
= (100% × (2.1875% - 1.75%)) + the greater of 0% AND (20% × (2.30% - 2.1875%)) | ||
= (100% × 0.4375%) + (20% × 0.1125%) | ||
= 0.4375% + 0.0225% | ||
= 0.46% |
• | Year 1: $20 million investment made |
• | Year 2: Fair market value (“FMV”) of investment determined to be $22 million |
• | Year 3: FMV of investment determined to be $17 million |
• | Year 4: Investment sold for $21 million |
• | Year 1: No impact |
• | Year 2: No impact |
• | Year 3: Decrease base amount on which the second part of the incentive fee is calculated by $3 million (unrealized capital depreciation) |
• | Year 4: Increase base amount on which the second part of the incentive fee is calculated by $4 million ($1 million of realized capital gain and $3 million reversal in unrealized capital depreciation) |
• | Year 1: $20 million investment made |
• | Year 2: FMV of investment determined to be $17 million |
• | Year 3: FMV of investment determined to be $17 million |
• | Year 4: FMV of investment determined to be $21 million |
• | Year 5: FMV of investment determined to be $18 million |
• | Year 6: Investment sold for $15 million |
• | Year 1: No impact |
• | Year 2: Decrease base amount on which the second part of the incentive fee is calculated by $3 million (unrealized capital depreciation) |
• | Year 3: No impact |
• | Year 4: Increase base amount on which the second part of the incentive fee is calculated by $3 million (reversal in unrealized capital depreciation) |
• | Year 5: Decrease base amount on which the second part of the incentive fee is calculated by $2 million (unrealized capital depreciation) |
• | Year 6: Decrease base amount on which the second part of the incentive fee is calculated by $3 million ($5 million of realized capital loss offset by a $2 million reversal in unrealized capital depreciation) |
• | Year 1: $20 million investment made in company A (“Investment A”) and $20 million investment made in company B (“Investment B”) |
• | Year 2: FMV of Investment A is determined to be $21 million, and Investment B is sold for $18 million |
• | Year 3: Investment A is sold for $23 million |
• | Year 1: No impact |
• | Year 2: Decrease base amount on which the second part of the incentive fee is calculated by $2 million (realized capital loss on Investment B) |
• | Year 3: Increase base amount on which the second part of the incentive fee is calculated by $3 million (realized capital gain on Investment A) |
• | Year 1: $20 million investment made in company A (“Investment A”), and $20 million investment made in company B (“Investment B”) |
• | Year 2: FMV of Investment A is determined to be $21 million, and FMV of Investment B is determined to be $17 million |
• | Year 3: FMV of Investment A is determined to be $18 million, and FMV of Investment B is determined to be $18 million |
• | Year 4: FMV of Investment A is determined to be $19 million, and FMV of Investment B is determined to be $21 million |
• | Year 5: Investment A is sold for $17 million, and Investment B is sold for $23 million |
• | Year 1: No impact |
• | Year 2: Decrease base amount on which the second part of the incentive fee is calculated by $3 million (unrealized capital depreciation on Investment B) |
• | Year 3: Decrease base amount on which the second part of the incentive fee is calculated by $1 million ($2 million in unrealized capital depreciation on Investment A and $1 million recovery in unrealized capital depreciation on Investment B) |
• | Year 4: Increase base amount on which the second part of the incentive fee is calculated by $3 million ($1 million recovery in unrealized capital depreciation on Investment A and $2 million recovery in unrealized capital depreciation on Investment B) |
• | Year 5: Increase base amount on which the second part of the incentive fee is calculated by $1 million ($3 million realized capital gain on Investment B offset by $3 million realized capital loss on Investment A plus a $1 million reversal in unrealized capital depreciation on Investment A from Year 4) |
Name | Position | Length of Service with Company (Years) | |||
John F. Barry III | Chairman and Chief Executive Officer | 14 | |||
M. Grier Eliasek | President and Chief Operating Officer | 14 |
Name | Aggregate Dollar Range of Common Stock Beneficially Owned by Portfolio Managers | |
John F. Barry III | Over $100,000 | |
M. Grier Eliasek | Over $100,000 |
Name and Address of Beneficial Owner | Number of Shares Beneficially Owned | Percentage of Class(1) | |||
5% or more holders | |||||
John F. Barry III | 35,843,500 | 9.8 | % | ||
Other executive officers and directors as a group | 1,891,053 | 0.5 | % |
(1) | Based on a total of 365,480,988 shares of our common stock issued and outstanding as of October 19, 2018. |
Name of Director or Officer | Dollar Range of Equity Securities in the Company(1) | Dollar Range of Equity Securities in Priority(1) | Dollar Range of Equity Securities in Pathway(1) | |||
Independent Directors | ||||||
William J. Gremp | $50,001 - $100,000 | None | None | |||
Andrew C. Cooper | None | None | None | |||
Eugene S. Stark | Over $100,000 | None | None | |||
Interested Directors | ||||||
John F. Barry III | Over $100,000 | None | None | |||
M. Grier Eliasek | Over $100,000 | None | None | |||
Officer | ||||||
Kristin Van Dask | Over $100,000 | None | None |
(1) | Dollar ranges are as follows: none, $1-$10,000, $10,001-$50,000, $50,001-$100,000 or over $100,000. |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
Companies more than 25% owned | |||||||||
CCPI Inc. 838 Cherry Street Blanchester, OH 45107 | Electronic Equipment, Instruments & Components | Senior Secured Term Loan A (10.00%, due 12/31/2020) | First priority lien | 2,881 | |||||
Senior Secured Term Loan B (12.00% plus 7.00% PIK, due 12/31/2020) | First priority lien | 17,819 | |||||||
Common Stock (14,857 shares) | 95 | % | 15,056 | ||||||
CP Energy Services Inc. 1508 Neptune Drive Clinton, OK 73601 | Energy Equipment & Services | Senior Secured Term Loan (13.31% (LIBOR + 11.00% with 1.00% LIBOR floor), due 12/29/2022) | First priority lien | 35,048 | |||||
Series B Convertible Preferred Stock (16.00%, 790 shares) | 100 | % | 63,225 | ||||||
Common Stock (102,924 shares) | 100 | % | 24,988 | ||||||
Credit Central Loan Company, LLC 700 East North Street, Suite 15 Greenville, SC 29601 | Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2024)(1) | Second priority lien | 51,855 | |||||
Class A Units (10,640,642 units)(1) | 98 | % | 23,196 | ||||||
Net Revenues Interest (25% of Net Revenues)(1) | 25 | % | 1,626 | ||||||
Echelon Aviation LLC 1465 Post Road East Westport, CT 06880 | Aerospace & Defense | Senior Secured Term Loan (11.75% (LIBOR + 9.75% with 2.00% LIBOR floor) plus 2.25% PIK, due 3/31/2022) | First priority lien | 31,055 | |||||
Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.00% PIK, due 12/7/2024) | First priority lien | 16,044 | |||||||
Membership Interest (100%) | 100 | % | 35,179 | ||||||
First Tower Finance Company LLC P.O. Box 320001 406 Liberty Park Court Flowood, MS 39232 | Consumer Finance | Subordinated Term Loan to First Tower, LLC (10.00% plus 10.00% PIK, due 6/24/2019)(1) | Second priority lien | 273,066 | |||||
Class A Units (95,709,910 units)(1) | 80 | % | 169,944 | ||||||
Freedom Marine Solutions, LLC 111 Evergreen Drive Houma, LA 70364 | Energy Equipment & Services | Membership Interest (100%) | 100 | % | 13,037 |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
InterDent, Inc. 9800 South La Cienega Boulevard, Suite 800 Inglewood, CA 90301 | Health Care Providers & Services | Senior Secured Term Loan A (7.59% (LIBOR + 5.50% with 0.75% LIBOR floor), due 12/31/2017, past due) | First priority lien | 77,994 | |||||
Senior Secured Term Loan B (8.34% (LIBOR + 6.25% with 0.75% LIBOR floor) plus 4.25% PIK, due 12/31/2017, past due) | First priority lien | 119,627 | |||||||
Senior Secured Term Loan C (18.00% PIK, due on demand) | First priority lien | — | |||||||
Warrants (to purchase 4,900 shares of Common Stock, expires 3/22/2030) | — | ||||||||
MITY, Inc. 1301 West 400 North Orem, UT 84057 | Commercial Services & Supplies | Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 1/30/2020) | First priority lien | 26,250 | |||||
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 1/30/2020) | First priority lien | 24,442 | |||||||
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due on demand)(1) | 5,563 | ||||||||
Common Stock (42,053 shares) | 95 | % | 2,639 | ||||||
National Property REIT Corp. 1389 Center Drive, Suite 170, Park City, UT 84098 | Equity Real Estate Investment Trusts (REITs) / Online Lending | Senior Secured Term Loan A (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 10.50% PIK, due 4/1/2019) | First priority lien | 293,203 | |||||
Senior Secured Term Loan E (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.50% PIK, due 4/1/2019) | First priority lien | 226,180 | |||||||
Common Stock (3,042,393 shares) | 100 | % | 436,105 | ||||||
Net Operating Income Interest (5% of Net Operating Income) | 5 | % | 99,488 | ||||||
Nationwide Loan Company LLC 3435 North Cierco Avenue Chicago, IL 60641 | Consumer Finance | Senior Subordinated Term Loan to Nationwide Acceptance LLC (10.00% plus 10.00% PIK, due 6/18/2019)(1) | Second priority lien | 17,410 | |||||
Class A Units (32,456,159 units)(1) | 94 | % | 16,443 | ||||||
NMMB, Inc. 10 Abeel Road Cranbury, NJ 08512 | Media | Senior Secured Note (14.00%, due 5/6/2021) | First priority lien | 3,714 | |||||
Senior Secured Note to Armed Forces Communications, Inc. (14.00%, due 5/6/2021) | First priority lien | 4,900 | |||||||
Series A Preferred Stock (7,200 shares) | 51 | % | 5,663 | ||||||
Series B Preferred Stock (5,669 shares) | 40 | % | 4,458 | ||||||
Pacific World Corporation 75 Enterprise, Suite 300 Aliso Viejo, CA 92656 | Personal Products | Revolving Line of Credit – $26,000 Commitment (9.34% (LIBOR + 7.25% with 1.00% LIBOR floor), due 9/26/2020) | First priority lien | 20,825 | |||||
Senior Secured Term Loan A (7.34% (LIBOR + 5.25% with 1.00% LIBOR floor), due 9/26/2020) | First priority lien | 96,250 | |||||||
Senior Secured Term Loan B (11.34% PIK (LIBOR + 9.25% with 1.00% LIBOR floor), in non-accrual status effective 5/21/2018, due 9/26/2020) | First priority lien | 47,945 | |||||||
Convertible Preferred Equity (100,000 units) | - | ||||||||
Common Stock (6,778,414 units) | 8 | % | - |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
R-V Industries, Inc. 584 Poplar Road Honey Brook, PA 19344 | Machinery | Senior Subordinated Note (11.34% (LIBOR + 9.00% with 1.00% LIBOR floor), due 3/31/2022) | Second priority lien | 28,622 | |||||
Common Stock (745,107 shares) | 88 | % | 3,264 | ||||||
SB Forging Company II, Inc. (f/k/a Gulf Coast Machine & Supply Company) 10 Westport Road, Suite C204 Wilton, CT 06897 | Energy Equipment & Services | Series A Convertible Preferred Stock (6.50%, 99,000 shares) | 100 | % | 2,194 | ||||
Common Stock (100 shares) | 100 | % | — | ||||||
USES Corp. 200 Crescent Court, Suite 1030 Dallas, TX 75201 | Commercial Services & Supplies | Senior Secured Term Loan A (9.00% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | First priority lien | 16,319 | |||||
Senior Secured Term Loan B (15.50% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | First priority lien | — | |||||||
Common Stock (268,962 shares) | 100 | % | — | ||||||
Valley Electric Company, Inc. 1100 Merrill Creek Parkway Everett, WA 98023 | Construction & Engineering | Senior Secured Note to Valley Electric Co. of Mt. Vernon, Inc. (8.00% (LIBOR + 5.00% with 3.00% LIBOR floor) plus 2.50% PIK, due 12/31/2024) | First priority lien | 10,430 | |||||
Senior Secured Note (8.00% plus 10.00% PIK, due 6/23/2024) | First priority lien | 27,781 | |||||||
Consolidated Revenue Interest (2.0%) | 2 | % | — | ||||||
Common Stock (50,000 shares) | 95 | % | 12,586 | ||||||
Wolf Energy, LLC 910 Foulk Road, Suite 201 Wilmington, DE 19803 | Energy Equipment & Services | Membership Interest (100%) | 100 | % | — | ||||
Membership Interest in Wolf Energy Services Company, LLC (100%) | 100 | % | — | ||||||
Net Profits Interest (8% of Equity Distributions) | 8 | % | 12 | ||||||
Companies 5% to 24.99% owned | |||||||||
Edmentum Ultimate Holdings, LLC 5600 West 83rd Street, Suite 300, 8200 Tower Bloomington, MN 55437 | Diversified Consumer Services | Second Lien Revolving Credit Facility to Edmentum, Inc. – $7,834 Commitment (5.00% PIK, due 12/9/2021) | Second priority lien | 7,834 | |||||
Unsecured Senior PIK Note (8.50% PIK, due 12/9/2021) | None | 7,520 | |||||||
Unsecured Junior PIK Note (10.00% PIK, in non-accrual status effective 1/1/2017, due 12/9/2021) | None | 19,862 | |||||||
Class A Units (370,964 units) | 12 | % | — | ||||||
Nixon, Inc. 701 South Coast Highway Encinitas, CA 92024 | Textiles, Apparel & Luxury Goods | Common Stock (857 units) | 9 | % | — | ||||
Targus International, LLC 1211 North Miller Street Anaheim, CA 92806 | Textiles, Apparel & Luxury Goods | Common Stock (7,383,395 shares) | 16 | % | 23,220 | ||||
Companies less than 5% owned | |||||||||
ACE Cash Express, Inc. 1231 Greenway Drive, Suite 600 Irving, TX 75038 | Consumer Finance | Senior Secured Note (12.00%, due 12/15/2022)(1) | First priority lien | 21,594 | |||||
AgaMatrix, Inc. 7C Raymond Avenue Salem, NH 03079 | Healthcare Equipment and Supplies | Senior Secured Term Loan (11.33% (LIBOR + 9.00% with 1.25% LIBOR floor), due 9/29/2022) | First priority lien | 35,815 | |||||
American Gilsonite Company 29950 S. Bonanza Highway Bonanza, UT 84008 | Chemicals | Membership Interest (0.05%, 131 shares) | — | % | — |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
Apidos CLO IX P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 7/15/2023)(1) | 76 | ||||||
Apidos CLO XI P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 7.80%, due 1/17/2028)(1) | 25,000 | ||||||
Apidos CLO XII P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 15.35%, due 4/15/2031)(1) | 26,518 | ||||||
Apidos CLO XV P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 14.14%, due 4/20/2031)(1) | 26,960 | ||||||
Apidos CLO XXII P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 12.65%, due 10/20/2027)(1) | 25,047 | ||||||
Ark-La-Tex Wireline Services, LLC 6913 Wesport Avenue Shreveport, LA 71129 | Energy & Equipment Services | Senior Secured Term Loan B (13.59% (LIBOR + 11.50% with 1.00% LIBOR floor), in non-accrual status effective 4/1/2016, due 4/8/2019) | First priority lien | 787 | |||||
Armor Holding II LLC 6201 15th Avenue Brooklyn, NY 11219 | Commercial Services & Supplies | Second Lien Term Loan (11.10% (LIBOR + 9.00% with 1.25% LIBOR floor), due 12/26/2020) | Second priority lien | 7,000 | |||||
Atlantis Health Care Group (Puerto Rico), Inc. 299 Park Avenue, 34th Floor New York, NY 10171 | Health Care Providers & Services | Revolving Line of Credit – $7,000 Commitment (10.81% (LIBOR + 8.50% with 1.50% LIBOR floor), due 8/21/2019) | First priority lien | 6,900 | |||||
Senior Term Loan (10.81% (LIBOR + 8.50% with 1.50% LIBOR floor), due 2/21/2020) | First priority lien | 76,607 | |||||||
ATS Consolidated, Inc. 360 North Crescent Drive Beverly Hills, CA 90210 | Electronic Equipment, Instruments & Components | Second Lien Term Loan (9.84% (LIBOR + 7.75%, due 2/27/2026) | Second priority lien | 14,873 | |||||
Autodata, Inc./ Autodata Solutions, Inc. 909 North Sepulveda Boulevard, 11th Floor El Segundo, CA 90245 | Software | Second Lien Term Loan (9.34% (LIBOR + 7.25% with 1.00% LIBOR floor), due 12/12/2025) | Second priority lien | 5,972 | |||||
Barings CLO 2018-III (f/k/a Babson CLO Ltd. 2014-III) P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 11.35%, due 7/20/2029)(1) | 46,933 | ||||||
Broder Bros., Co. Six Neshaminy Interplex, 6th Floor Trevose, PA 19053 | Textiles, Apparel & Luxury Goods | Senior Secured Note (10.33% (LIBOR + 8.00% with 1.25% LIBOR floor), due 12/02/2022) | First priority lien | 274,009 | |||||
Brookside Mill CLO Ltd. 75 Fort Street P.O. Box 1350 George Town, Grand Cayman, KY1-1108 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 8.73%, due 1/18/2028)(1) | 13,466 | ||||||
California Street CLO IX Ltd. (f/k/a Symphony CLO IX Ltd.) P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Preference Shares (Residual Interest, current yield 12.20%, due 10/16/2028)(1) | 35,852 |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
Candle-Lite Company, LLC 10521 Millington Ct Cincinnati, OH 45242 | Household & Personal Products | Senior Secured Term Loan A (7.81% (LIBOR + 5.50% with 1.25% LIBOR floor), due 1/23/2023) | First priority lien | 12,438 | |||||
Senior Secured Term Loan B (11.81% (LIBOR + 9.50% with 1.25% LIBOR floor), due 1/23/2023) | First priority lien | 12,500 | |||||||
Capstone Logistics Acquisition, Inc. 6525 The Corners Parkway, Suite 520 Peachtree Corners, GA 30092 | Commercial Services & Supplies | Second Lien Term Loan (10.34% (LIBOR + 8.25% with 1.00% LIBOR floor), due 10/7/2022) | Second priority lien | 100,136 | |||||
Carlyle Global Market Strategies CLO 2014-4, Ltd. 190 Elgin Avenue George Town, Grand Cayman KY1-9005 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 20.73%, due 7/15/2030)(1) | 18,807 | ||||||
Carlyle Global Market Strategies CLO 2016-3, Ltd. 27 Hospital Road George Town, Grand Cayman KY1-9008 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 18.00%, due 10/20/2029)(1) | 29,080 | ||||||
Carlyle C17 CLO Limited (f/k/a Cent CLO 17 Limited) P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 18.34%, due 4/30/2031)(1) | 15,196 | ||||||
Cent CLO 20 Limited P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 15.40%, due 1/25/2026)(1) | 28,269 | ||||||
Cent CLO 21 Limited P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 17.56%, due 7/27/2026)(1) | 33,703 | ||||||
Centerfield Media Holding Company 855 N. Douglas Street El Segundo, CA 90245 | Internet Software and Services | Senior Secured Term Loan A (9.31% (LIBOR + 7.00% with 2.00% LIBOR floor), due 1/17/2022) | First priority lien | 66,300 | |||||
Senior Secured Term Loan B (14.81% (LIBOR + 12.50% with 2.00% LIBOR floor), due 1/17/2022) | First priority lien | 68,000 | |||||||
CIFC Funding 2013-III-R, Ltd. (f/k/a CIFC Funding 2013-III, Ltd.) P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 14.43%, due 4/24/2031)(1) | 25,250 | ||||||
CIFC Funding 2013-IV, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 14.31%, due 4/28/2031)(1) | 27,697 | ||||||
CIFC Funding 2014-IV Investor, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Income Notes (Residual Interest, current yield 8.46%, due 10/19/2026)(1) | 23,715 | ||||||
CIFC Funding 2016-I, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Income Notes (Residual Interest, current yield 13.11%, due 10/21/2028)(1) | 27,998 | ||||||
Cinedigm DC Holdings, LLC 902 Broadway, 9th Floor New York, NY 10010 | Media | Senior Secured Term Loan (11.31% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021) | First priority lien | 31,460 |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
Class Appraisal, LLC 2600 Bellingham Dr. #100 Troy, MI 48083 | Real Estate Management & Development | Revolving Line of Credit – $1,500 Commitment (10.58% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/12/2020) | First priority lien | — | |||||
Senior Secured Term Loan (10.58% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/10/2023) | First priority lien | 41,860 | |||||||
Coverall North America, Inc. 1201 West Peachtree, Suite 2800 Atlanta, GA 30309 | Commercial Services & Supplies | Senior Secured Term Loan A (8.31% (LIBOR + 6.00% with 1.00% LIBOR floor), due 11/02/2020) | First priority lien | 19,100 | |||||
Senior Secured Term Loan B (13.31% (LIBOR + 11.00% with 1.00% LIBOR floor), due 11/02/2020) | First priority lien | 24,750 | |||||||
CP VI Bella Midco 2701 Renaissance Boulevard, Suite 200 King of Prussia, PA 19406 | IT Services | Second Lien Term Loan (8.84% (LIBOR + 6.75%, due 12/29/2025) | Second priority lien | 1,990 | |||||
CURO Financial Technologies Corp. 3527 North Ridge Road Wichita, KS 67205 | Consumer Finance | Senior Secured Notes (12.00%, due 3/1/2022)(1) | First priority lien | 11,844 | |||||
Digital Room LLC 8000 Haskell Avenue Van Nuys, CA 91406 | Commercial Services & Supplies | First Lien Term Loan (7.10% (LIBOR + 5.00% with 1.00% LIBOR floor), due 12/29/2023) | First priority lien | 9,925 | |||||
Second Lien Term Loan (10.85% (LIBOR + 8.75% with 1.00% LIBOR floor), due 12/29/2024) | Second priority lien | 57,100 | |||||||
Dunn Paper, Inc. 218 Riverview St. Port Huron, MI 48060 | Paper & Forest Products | Second Lien Term Loan (10.84% (LIBOR + 8.75% with 1.00% LIBOR floor), due 8/26/2023) | Second priority lien | 11,226 | |||||
Easy Gardener Products, Inc. 3022 Franklin Avenue Waco, TX 76710 | Household Durables | Senior Secured Term Loan (12.31% (LIBOR + 10.00% with 0.25% LIBOR floor), due 09/30/2020) | First priority lien | 15,728 | |||||
Engine Group, Inc. 315 Park Avenue South, 14th Floor New York, NY 10010 | Media | Senior Secured Term Loan (7.08% (LIBOR + 4.75% with 1.00% LIBOR floor), due 9/15/2022) | First priority lien | 4,813 | |||||
Second Lien Term Loan (11.08% (LIBOR + 8.75% with 1.00% LIBOR floor), due 9/15/2023) | Second priority lien | 35,000 | |||||||
EXC Holdings III Corp. 200 West Street Waltham, MA 02451 | Technology Hardware, Storage & Peripherals | Second Lien Term Loan (9.97% (LIBOR + 7.50% with 1.00% LIBOR floor), due 12/01/2025) | Second priority lien | 12,500 | |||||
Fleetwash, Inc. 26 Law Drive Fairfield, NJ 07004 | Commercial Services & Supplies | Senior Secured Term Loan B (11.31% (LIBOR + 9.00% with 1.00% LIBOR floor), due 4/30/2022) | First priority lien | 21,544 | |||||
Delayed Draw Term Loan – $15,000 Commitment (10.31% (LIBOR + 8.00% with 1.00% LIBOR floor), expires 4/30/2022) | First priority lien | — | |||||||
Galaxy XV CLO, Ltd. P.O Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 12.42%, due 10/15/2030)(1) | 30,457 | ||||||
Galaxy XXVII CLO, Ltd. (f/k/a Galaxy XVI CLO, Ltd.) 190 Elgin Avenue George Town, Grand Cayman KY1-9005 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 13.57%, due 5/16/2031)(1) | 13,688 | ||||||
Galaxy XXVIII CLO, Ltd. (f/k/a Galaxy XVII CLO, Ltd.) P.O Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 10.89%, due 7/15/2031)(1) | 22,335 |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
Galaxy XXVIII CLO, Ltd. P.O Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Class F Junior Notes (LIBOR + 8.48%, due 7/15/2031)(1) | 6,159 | ||||||
H.I.G. ECI Merger Sub, Inc. 100 High Street, 16th Floor Boston, MA 02110 | IT Services | Revolving Line of Credit – $5,000 Commitment (9.81% (LIBOR + 7.50% with 1.50% LIBOR floor), due 9/30/2018) | First priority lien | — | |||||
Senior Secured Term Loan A (7.81% (LIBOR + 5.50% with 1.50% LIBOR floor), due 5/31/2023) | First priority lien | 44,688 | |||||||
Senior Secured Term Loan B (12.81% (LIBOR + 10.50% with 1.50% LIBOR floor), due 5/31/2023) | First priority lien | 29,900 | |||||||
Halcyon Loan Advisors Funding 2012-1 Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 8/15/2023)(1) | 3,125 | ||||||
Halcyon Loan Advisors Funding 2013-1 Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 4/15/2025)(1) | 11,017 | ||||||
Halcyon Loan Advisors Funding 2014-1 Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 10.30%, due 4/18/2026)(1) | 11,647 | ||||||
Halcyon Loan Advisors Funding 2014-2 Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 8.64%, due 4/28/2025)(1) | 19,050 | ||||||
Halcyon Loan Advisors Funding 2015-3 Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 19.80%, due 10/18/2027)(1) | 32,513 | ||||||
Harbortouch Payments, LLC 2202 North Irving Street Allentown, PA 18109 | Commercial Services & Supplies | Escrow Receivable | 917 | ||||||
HarbourView CLO VII-R, Ltd. (f/k/a HarbourView CLO VII, Ltd.) P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 18.94%, due 7/18/2031)(1) | 13,689 | ||||||
Help/Systems Holdings, Inc. 6455 City West Parkway Eden Prairie, MN 55344 | Software | Second Lien Term Loan (9.84% (LIBOR + 7.75%), due 3/27/2026) | Second priority lien | 11,293 | |||||
Ingenio, LLC 221 Main Street, Suite 700 San Francisco, CA 94105 | Internet Software & Services | Senior Secured Term Loan (9.82% (LIBOR + 7.50% with 1.25% LIBOR floor), due 9/26/2022) | First priority lien | 9,647 | |||||
Inpatient Care Management Company LLC 19105 US Highway 41 North, Suite 300 Lutz, FL 33548 | Health Care Providers & Services | Senior Secured Term Loan (10.31% (LIBOR + 8.00% with 1.00% LIBOR floor), due 6/8/2021) | First priority lien | 23,698 |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
Janus International Group, LLC 135 Janus International Blvd. Temple, GA 30179 | Building Products | Second Lien Term Loan (9.84% (LIBOR + 7.75% with 1.00% LIBOR floor), due 2/12/2026) | Second priority lien | 10,000 | |||||
JD Power and Associates 3200 Park Center Drive, 13th Floor Costa Mesa, CA 92626 | Capital Markets | Second Lien Term Loan (10.59% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/7/2024) | Second priority lien | 20,000 | |||||
Jefferson Mill CLO Ltd. 75 Fort Street P.O. Box 1350 George Town, Grand Cayman, KY1-1108 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 7.20%, due 7/20/2027)(1) | 12,392 | ||||||
K&N Parent, Inc. 1455 Citrus Street Riverside, CA 92507 | Auto Components | Second Lien Term Loan (11.08% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/21/2024) | Second priority lien | 12,887 | |||||
Keystone Acquisition Corp. 777 East Park Drive Harrisburg, PA 17111 | Health Care Providers & Services | Second Lien Term Loan (11.58% (LIBOR + 9.25% with 1.00% LIBOR floor), due 5/1/2025) | Second priority lien | 50,000 | |||||
LCM XIV Ltd. P.O. Box 1093 Queensgate House Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Income Notes (Residual Interest, current yield 16.28%, due 7/21/2031)(1) | 24,257 | ||||||
Madison Park Funding IX, Ltd. 75 Fort Street P.O. Box 1350 George Town, Grand Cayman, KY1-1108 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 57.45%, due 8/15/2022)(1) | 2,200 | ||||||
Maverick Healthcare Equity, LLC 2546 West Birchwood Avenue Mesa, AZ 85202 | Health Care Providers & Services | Preferred Units (10.00%, 1,250,000 units) | 1 | % | 446 | ||||
Class A Common Units (1,250,000 units) | 1 | % | — | ||||||
MedMark Services, Inc. 1720 Lakepointe Drive, Suite 117 Lewisvill, TX 75057 | Health Care Providers & Services | Second Lien Term Loan (10.55% (LIBOR + 8.25% with 1.00% LIBOR floor), due 3/1/2025) | 6,933 | ||||||
Memorial MRI & Diagnostic, LLC 5700 Granite Parkway, Suite 435 Plano, TX 75024 | Health Care Providers & Services | Senior Secured Term Loan (10.83% (LIBOR + 8.50% with 1.00% LIBOR floor), due 3/16/2022) | First priority lien | 36,925 | |||||
Mobile Posse, Inc. 1010 North Glebe Rd #200 Arlington, VA 22201 | Media | First Lien Term Loan (10.83% (LIBOR + 8.50% with 2.00% LIBOR floor), due 4/3/2023) | First priority lien | 27,700 | |||||
Mountain View CLO 2013-I Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 13.66%, due 10/15/2030)(1) | 23,267 | ||||||
Mountain View CLO IX Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 17.63%, due 7/15/2031)(1) | 37,333 | ||||||
MRP Holdco, Inc. 131 Clarendon Street, 3rd Floor Boston, MA 02116 | IT Services | Senior Secured Term Loan A (6.59% (LIBOR + 4.50% with 1.50% LIBOR floor), due 4/17/2024) | First priority lien | 43,000 | |||||
Senior Secured Term Loan B (10.59% (LIBOR + 8.50% with 1.50% LIBOR floor), due 4/17/2024) | First priority lien | 43,000 |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
Octagon Investment Partners XV, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Income Notes (Residual Interest, current yield 14.58%, due 7/19/2030)(1) | 26,350 | ||||||
Octagon Investment Partners XVIII, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Income Notes (Residual Interest, current yield 17.26%, due 4/16/2031)(1) | 26,420 | ||||||
Pearl Intermediate Parent LLC 1 Gorham Island, Suite 300 Westport, CT 06880 | Health Care Providers & Services | Second Lien Term Loan (8.33% (LIBOR + 6.25%, due 2/15/2026) | Second priority lien | 5,000 | |||||
PeopleConnect Intermediate LLC (f/k/a Intelius, Inc.) 500 108th Avenue Suite 1600 Bellevue, WA 98004 | Internet Software & Services | Revolving Line of Credit – $1,000 Commitment (11.81% (LIBOR + 9.50% with 1.00% LIBOR floor), due 8/11/2020) | First priority lien | 500 | |||||
Senior Secured Term Loan A (8.81% (LIBOR + 6.50% with 1.00% LIBOR floor), due 7/1/2020) | First priority lien | 18,828 | |||||||
Senior Secured Term Loan B (14.81% (LIBOR + 12.50% with 1.00% LIBOR floor), due 7/1/2020) | First priority lien | 20,163 | |||||||
PGX Holdings, Inc. 330 North Cutler Drive North Salt Lake, UT 84054 | Diversified Consumer Services | Second Lien Term Loan (11.09% (LIBOR + 9.00% with 1.00% LIBOR floor), due 9/29/2021) | Second priority lien | 118,289 | |||||
PharMerica Corporation 1901 Campus Place Louisville, KY 40299 | Pharmaceuticals | Second Lien Term Loan (9.80% (LIBOR + 7.75% with 1.00% LIBOR floor), due 12/7/2025) | Second priority lien | 12,000 | |||||
Photonis Technologies SAS 18 Avenue de Pythagore, Domaine de Pelus Axis Business Park, Bat. 5E 33700 Merignac, France | Electronic Equipment, Instruments & Components | First Lien Term Loan (9.83% (LIBOR + 7.50% with 1.00% LIBOR floor), due 9/18/2019)(1) | First priority lien | 12,335 | |||||
PlayPower, Inc. 11515 Vanstory Drive, Suite 100 Huntersville, NC 28078 | Leisure Products | Second Lien Term Loan (11.08% (LIBOR + 8.75% with 1.00% LIBOR floor), due 6/23/2022) | Second priority lien | 11,000 | |||||
Research Now Group, Inc. & Survey Sampling International LLC 5800 Tennyson Parkway, Suite 600 Plano, TX 75024 | Professional Services | First Lien Term Loan (7.86% (LIBOR + 5.50% with 1.00% LIBOR floor), due 12/20/2024) | First priority lien | 9,608 | |||||
Second Lien Term Loan (11.82% (LIBOR + 9.50% with 1.00% LIBOR floor), due 12/20/2025) | Second priority lien | 47,382 | |||||||
RGIS Services, LLC 345 Park Avenue, 44th Floor New York, NY 10154 | Commercial Services & Supplies | Senior Secured Term Loan (9.59% (LIBOR + 7.50% with 1.00% LIBOR floor), due 3/31/2023) | First priority lien | 14,339 | |||||
RME Group Holding Company 810 7th Avenue, 35th Floor New York, NY 10019 | Media | Senior Secured Term Loan A (8.33% (LIBOR + 6.00% with 1.00% LIBOR floor), due 5/4/2022) | First priority lien | 35,146 | |||||
Senior Secured Term Loan B (13.33% (LIBOR + 11.00% with 1.00% LIBOR floor), due 5/4/2022) | First priority lien | 24,349 | |||||||
Rocket Software, Inc. 275 Grove Street Newton, MA 02466 | Software | Second Lien Term Loan (11.83% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/14/2024) | Second priority lien | 50,000 | |||||
Romark WM-R Ltd. (f/k/a Washington Mill CLO Ltd.) 75 Fort Street P.O. Box 1350 George Town, Grand Cayman, KY1-1108 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 12.41%, due 4/20/2031)(1) | 17,961 |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
Rosa Mexicano 264 West 40th Street New York, NY 10018 | Hotels, Restaurants & Leisure | Revolving Line of Credit – $2,500 Commitment (9.83% (LIBOR + 7.50% with 1.50% LIBOR floor), due 3/29/2023 | First priority lien | — | |||||
Senior Secured Term Loan (9.83% (LIBOR + 7.50% with 1.50% LIBOR floor), due 3/29/2023 | First priority lien | 29,813 | |||||||
SCS Merger Sub, Inc. 10100 Reunion Place, Suite 500 San Antonio, TX 78216 | IT Services | Second Lien Term Loan (11.59% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/30/2023) | Second priority lien | 20,000 | |||||
Securus Technologies Holdings, Inc. 14651 Dallas Parkway, Suite 600 Dallas, TX 75254-8815 | Communications Equipment | Second Lien Term Loan (10.34% (LIBOR + 8.25% with 1.00% LIBOR floor), due 11/01/2025) | Second priority lien | 40,000 | |||||
SEOTownCenter, Inc. 2600 W. Executive Pkwy. #200 Lehi, UT 84043 | Internet Software & Services | Senior Secured Term Loan A (9.84% (LIBOR + 7.50% with 2.00% LIBOR floor), due 4/07/2023) | First priority lien | 25,000 | |||||
Senior Secured Term Loan B (14.84% (LIBOR + 12.50% with 2.00% LIBOR floor), due 4/07/2023) | First priority lien | 17,000 | |||||||
SESAC Holdco II LLC 55 Nashville Music Square East Nashville, TN 37203 | Media | Second Lien Term Loan (9.34% (LIBOR + 7.25% with 1.00% LIBOR floor), due 2/23/2025) | Second priority lien | 2,975 | |||||
Small Business Whole Loan Portfolio 10 East 40th Street, 44th Fl. New York, NY 10016 | Online Lending | 124 Small Business Loans purchased from On Deck Capital, Inc. | None | 17 | |||||
SMG US Midco 300 Conshohocken State Rd., Suite 450 West Conshohocken, PA 19428 | Hotels, Restaurants & Leisure | Second Lien Term Loan (9.09% (LIBOR + 7.00%, due 1/23/2026) | Second priority lien | 7,482 | |||||
Spartan Energy Services, Inc. 345 Doucet Road Lafayette, LA 70503 | Energy Equipment & Services | Senior Secured Term Loan A (7.98% (LIBOR + 6.00% with 1.00% LIBOR floor), due 12/28/2018) | First priority lien | 13,046 | |||||
Senior Secured Term Loan B (13.98% PIK (LIBOR + 12.00% with 1.00% LIBOR floor), due 12/28/2018) | First priority lien | 18,237 | |||||||
Spectrum Holdings III Corp 2500 Northwinds Parkway, Suite 472 Alpharetta, GA 30009 | Health Care Equipment & Supplies | Second Lien Term Loan (9.09% (LIBOR + 7.00% with 1.00% LIBOR floor), due 1/31/2026) | Second priority lien | 7,464 | |||||
Strategic Materials 17220 Katy Freeway, Suite 150 Houston, TX 77094 | Household Durables | Second Lien Term Loan (10.10% (LIBOR + 7.75% with 1.00% LIBOR floor), due 11/1/2025) | Second priority lien | 6,936 | |||||
Stryker Energy, LLC 6690 Beta Drive, Suite 214 Mayfield Village, OH 44143 | Oil, Gas & Consumable Fuels | Overriding Royalty Interests | — | ||||||
Sudbury Mill CLO Ltd. 75 Fort Street P.O. Box 1350 George Town, Grand Cayman, KY1-1108 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 5.47%, due 1/17/2026)(1) | 14,218 | ||||||
Symphony CLO XIV Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 3.78%, due 7/14/2026)(1) | 27,478 | ||||||
Symphony CLO XV, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 7.30%, due 10/17/2026)(1) | 32,433 |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
TGP HOLDINGS III LLC 1215 E. Wilmington Ave., Suite 200 Salt Lake City, UT 84106 | Household Durables | Second Lien Term Loan (10.83% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/25/2025) | Second priority lien | 2,959 | |||||
TouchTunes Interactive Networks, Inc. 850 Third Avenue, Suite 15C New York, NY 10022 | Internet Software & Services | Second Lien Term Loan (10.25% (LIBOR + 8.25% with 1.00% LIBOR floor), due 5/29/2022) | Second priority lien | 14,000 | |||||
Town & Country Holdings, Inc. 295 Fifth Avenue, Suite 412 New York, NY 10016 | Distributors | First Lien Term Loan (11.33% (LIBOR + 9.00% with 1.25% LIBOR floor), due 1/26/2023) | First priority lien | 69,650 | |||||
Transplace Holdings, Inc. 3010 Gaylord Parkway, Suite 200 Frisco, TX 75034 | Transportation Infrastructure | Second Lien Term Loan (10.79% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/6/2025) | Second priority lien | 28,104 | |||||
Turning Point Brands, Inc. 5201 Interchange Way Louisville, KY 40229 | Tobacco | Second Lien Term Loan (9.04% (LIBOR + 7.00% with 0.00% LIBOR floor), due 3/7/2024) | Second priority lien | 14,392 | |||||
United Sporting Companies, Inc. 267 Columbia Ave Chapin, SC 29036 | Distributors | Second Lien Term Loan (13.09% (LIBOR + 11.00% with 1.75% LIBOR floor) plus 2.00% PIK, in non-accrual status effective 4/1/2017, due 11/16/2019) | Second priority lien | 58,806 | |||||
Common Stock (24,967 shares) | 3 | % | — | ||||||
Universal Fiber Systems, LLC 14401 Industrial Park Road Bristol, VA 24202 | Textiles, Apparel & Luxury Goods | Second Lien Term Loan (11.60% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/02/2022) | Second priority lien | 37,000 | |||||
Universal Turbine Parts, LLC 120 Grouby Airport Road Prattsville, AL 36067 | Trading Companies & Distributors | Senior Secured Term Loan A (8.06% (LIBOR + 5.75% with 1.00% LIBOR floor), due 7/22/2021) | First priority lien | 27,926 | |||||
Senior Secured Term Loan B (14.06% (LIBOR + 11.75% with 1.00% LIBOR floor), due 7/22/2021) | First priority lien | 28,273 | |||||||
USG Intermediate, LLC 6500 River Place Blvd., Building III, Suite 400 Austin, TX 78730 | Leisure Products | Revolving Line of Credit – $2,500 Commitment (11.34% (LIBOR + 9.25% with 1.00% LIBOR floor), due 8/24/2018) | First priority lien | 2,500 | |||||
Senior Secured Term Loan A (8.84% (LIBOR + 6.75% with 1.00% LIBOR floor), due 8/24/2022) | First priority lien | 11,385 | |||||||
Senior Secured Term Loan B (13.84% (LIBOR + 11.75% with 1.00% LIBOR floor), due 8/24/2022) | First priority lien | 20,741 | |||||||
Equity | — | ||||||||
UTZ Quality Foods, LLC 900 High Street Hanover, PA 17331 | Food Products | Second Lien Term Loan (9.34% (LIBOR + 7.25%, due 11/21/2025) | Second priority lien | 9,886 | |||||
VC GB Holdings, Inc. 7400 Linder Avenue Skokie, IL 60077 | Household Durables | Subordinated Secured Term Loan (10.09% (LIBOR + 8.00% with 1.00% LIBOR floor), due 2/28/2025) | Second priority lien | 16,000 | |||||
Venio LLC 640 Freedom Business Center Drive, Suite 600 King of Prussia, PA 19406 | Professional Services | Second Lien Term Loan (4.00% plus PIK 10.00% (LIBOR + 7.50% with 2.50% LIBOR floor), due 2/19/2020) | Second priority lien | 20,001 | |||||
Voya CLO 2012-2, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(1) | 595 | ||||||
Voya CLO 2012-3, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(1) | 585 |
Portfolio Company | Nature of its Principal Business | Title and Class of Securities Held | Collateral Held | % of Class Held | Fair Value (Equity) | Fair Value (Debt) | |||
(in thousands) | (in thousands) | ||||||||
Voya CLO 2012-4, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Income Notes (Residual Interest, current yield 11.96%, due 10/16/2028)(1) | 28,264 | ||||||
Voya CLO 2014-1, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 16.47%, due 4/18/2031)(1) | 26,931 | ||||||
Voya CLO 2016-3, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 12.68%, due 10/18/2027)(1) | 22,912 | ||||||
Voya CLO 2017-3, Ltd. P.O. Box 1093 Boundary Hall Cricket Square Grand Cayman KY1-1102 Cayman Islands | Structured Finance | Subordinated Notes (Residual Interest, current yield 12.26%, due 7/20/2030)(1) | 43,351 | ||||||
Wink Holdco, Inc. 939 Elkridge Landing Road, Suite 200 Linthicum, MD 21090 | Insurance | Second Lien Term Loan (8.85% (LIBOR + 6.75% with 1.00% LIBOR floor), due 12/1/2025) | Second priority lien | 2,986 |
(1) | Certain investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The Company monitors the status of these assets on an ongoing basis. As of June 30, 2018, our non-qualifying assets as a percentage of total assets stood at 26.8%. |
• | The effect that an offering below NAV per share would have on our stockholders, including the potential dilution they would experience as a result of the offering; |
• | The amount per share by which the offering price per share and the net proceeds per share are less than the most recently determined NAV per share; |
• | The relationship of recent market prices of par common stock to NAV per share and the potential impact of the offering on the market price per share of our common stock; |
• | Whether the estimated offering price would closely approximate the market value of our shares; |
• | The potential market impact of being able to raise capital during the current financial market difficulties; |
• | The nature of any new investors anticipated to acquire shares of common stock in the offering; |
• | The anticipated rate of return on and quality, type and availability of investments; and |
• | The leverage available to us. |
• | existing stockholders who do not purchase any shares of common stock in the offering; |
• | existing stockholders who purchase a relatively small amount of shares of common stock in the offering or a relatively large amount of shares of common stock in the offering; and |
• | new investors who become stockholders by purchasing shares of common stock in the offering. |
Prior to Sale | Example 1 5% Offering at 5% Discount | Example 2 10% Offering at 10% Discount | Example 3 25% Offering at 25% Discount | Example 4 25% Offering at 100% Discount | |||||||||||||||||||
Below NAV | Following Sale | % Change | Following Sale | % Change | Following Sale | % Change | Following Sale | % Change | |||||||||||||||
Offering Price | |||||||||||||||||||||||
Price per Share to Public | $9.27 | $8.77 | $7.31 | — | |||||||||||||||||||
Net Proceeds per Share to Issuer | $8.88 | $8.41 | $7.01 | — | |||||||||||||||||||
Decrease to NAV | |||||||||||||||||||||||
Total Shares Outstanding | 365,000,000 | 383,250,000 | 5.00 | % | 401,500,000 | 10.00 | % | 456,250,000 | 25.00 | % | 456,250,000 | 25.00 | % | ||||||||||
NAV per Share | $9.35 | $9.33 | (0.24 | )% | $9.26 | (0.91 | )% | $8.88 | (5.00 | )% | 7.48 | (20.00 | )% | ||||||||||
Dilution to Stockholder | |||||||||||||||||||||||
Shares Held by Stockholder A | 365,000 | 365,000 | — | 365,000 | — | 365,000 | — | 365,000 | — | ||||||||||||||
Percentage Held by Stockholder A | 0.10 | % | 0.10 | % | (4.76 | )% | 0.09 | % | (9.09 | )% | 0.08 | % | (20.00 | )% | 0.08 | % | (20.00 | )% | |||||
Total Asset Values | |||||||||||||||||||||||
Total NAV Held by Stockholder A | $3,412,000 | $3,403,876 | (0.24 | )% | $3,380,981 | (0.91 | )% | $3,241,399 | (5.00 | )% | $2,729,600 | (20.00 | )% | ||||||||||
Total Investment by Stockholder A (Assumed to be $9.35 per Share on Shares Held Prior to Sale) | $3,412,000 | $3,412,000 | $3,412,000 | $3,412,000 | |||||||||||||||||||
Total Dilution to Stockholder A (Total NAV Less Total Investment) | $(8,124) | $(31,018) | $(170,600) | $(682,400) | |||||||||||||||||||
Per Share Amounts | |||||||||||||||||||||||
NAV per Share Held by Stockholder A | $9.33 | $9.26 | $8.88 | $7.48 | |||||||||||||||||||
Investment per Share Held by Stockholder A (Assumed to be $9.35 per Share on Shares Held Prior to Sale) | $9.35 | $9.35 | $9.35 | $9.35 | $9.35 | ||||||||||||||||||
Dilution per Share Held by Stockholder A (NAV per Share Less Investment per Share) | $(0.02) | $(0.09) | $(0.47) | $(1.87) | |||||||||||||||||||
Percentage Dilution to Stockholder A (Dilution per Share Divided by Investment per Share) | (0.24 | )% | (0.91 | )% | (5.00 | )% | (20.00 | )% |
50 % Participation | 150% Participation | ||||||||||||
Prior to Sale Below NAV | Following Sale | % Change | Following Sale | % Change | |||||||||
Offering Price | |||||||||||||
Price per Share to Public | $7.31 | $7.31 | |||||||||||
Net Proceeds per Share to Issuer | $7.01 | $7.01 | |||||||||||
Decrease to NAV | |||||||||||||
Total Shares Outstanding | 365,000,000 | 456,250,000 | 25.00 | % | 456,250,000 | 25.00 | % | ||||||
NAV per Share | $9.35 | $8.88 | (5.00 | )% | $8.88 | (5.00 | )% | ||||||
Dilution to Nonparticipating Stockholder | |||||||||||||
Shares Held by Stockholder A | 365,000 | 410,625 | 12.50 | % | 501,875 | 37.50 | % | ||||||
Percentage Held by Stockholder A | 0.10 | % | 0.09 | % | (10.00 | )% | 0.11 | % | 10.00 | % | |||
Total NAV Held by Stockholder A | $9.35 | $3,646,575 | 6.88 | % | $4,456,925 | 30.63 | % | ||||||
Total Investment by Stockholder A (Assumed to be $9.35 per Share) on Shares Held Prior to Sale | $3,745,385 | $4,412,156 | |||||||||||
Total Dilution to Stockholder A (Total NAV Less Total Investment) | $(98,810) | $44,769 | |||||||||||
NAV per Share Held by Stockholder A after offering | $8.88 | $8.88 | |||||||||||
Investment per Share Held by Stockholder A (Assumed to be $9.35 per Share on Shares Held Prior to Sale) | $9.12 | $8.79 | |||||||||||
Dilution per Share Held by Stockholder A (NAV per Share Less Investment per Share) | $(0.24) | $(0.09) | |||||||||||
Percentage Dilution to Stockholder A (Dilution per Share Divided by Investment per Share) | (2.43 | )% | (5.95 | )% |
Example 1 5% Offering at 5% Discount | Example 2 10% Offering at 10% Discount | Example 3 25% Offering at 25% Discount | |||||||||||||||||||||||
Prior to Sale Below NAV | Following Sale | % Change | Following Sale | % Change | Following Sale | % Change | |||||||||||||||||||
Offering Price | |||||||||||||||||||||||||
Price per Share to Public | $ | 9.27 | $8.77 | $7.31 | |||||||||||||||||||||
Net Proceeds per Share to Issuer | $ | 8.88 | $8.41 | $7.01 | |||||||||||||||||||||
Decrease to NAV | |||||||||||||||||||||||||
Total Shares Outstanding | 365,000,000 | 383,250,000 | 5.00 | % | 401,500,000 | 10.00 | % | 456,250,000 | 25.00 | % | |||||||||||||||
NAV per Share | $ | 9.35 | $ | 9.33 | (0.24 | )% | $ | 9.26 | (0.91 | )% | $ | 8.88 | (5.00 | )% | |||||||||||
Dilution to Participating Stockholder | |||||||||||||||||||||||||
Shares Held by Stockholder A | — | 18,250 | 36,500 | 91,250 | |||||||||||||||||||||
Percentage Held by Stockholder A | — | % | — | % | 0.01 | % | 0.02 | % | |||||||||||||||||
Total NAV Held by Stockholder A | $ | — | $ | 170,194 | $ | 338,098 | $ | 810,350 | |||||||||||||||||
Total investment by Stockholder A | $ | 169,188 | $ | 320,240 | $ | 666,770 | |||||||||||||||||||
Total Dilution to Stockholder A (Total NAV Less Total Investment) | $ | 1,006 | $ | 17,858 | $ | 143,580 | |||||||||||||||||||
NAV per Share Held by Stockholder A | $ | 9.27 | $ | 8.77 | $ | 7.31 | |||||||||||||||||||
Investment per Share Held by Stockholder A | $ | 9.33 | $ | 9.26 | $ | 8.88 | |||||||||||||||||||
Dilution per Share Held by Stockholder A (NAV per Share Less Investment per Share) | $ | (0.06 | ) | $ | (0.49 | ) | $ | (1.57 | ) | ||||||||||||||||
Percentage Dilution to Stockholder A (Dilution per Share Divided by Investment per Share) | 0.59 | % | 5.58 | % | 21.53 | % |
• | A citizen or individual resident of the United States; |
• | A corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States or any state thereof or the District of Columbia; |
• | An estate, the income of which is subject to U.S. federal income taxation regardless of its source; or |
• | A trust if (1) a U.S. court is able to exercise primary supervision over the administration of such trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or (2) it has a valid election in place to be treated as a U.S. person. |
• | qualify to be treated as a business development company or be registered as a management investment company under the 1940 Act at all times during each taxable year; |
• | derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock or other securities or currencies or other income derived with respect to our business of investing in such stock, securities or currencies and net income derived from an interest in a “qualified publicly traded partnership” (as defined in the Code) (the 90% Income Test); and |
• | diversify our holdings so that at the end of each quarter of the taxable year: |
◦ | at least 50% of the value of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets and do not represent more than 10% of the outstanding voting securities of the issuer (which for these purposes includes the equity securities of a “qualified publicly traded partnership”); and |
◦ | no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, (i) of one issuer, (ii) of two or more issuers that are controlled, as determined under applicable tax rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) of one or more “qualified publicly traded partnerships.” |
(1) Title of Class | (2) Amount Authorized | (3) Amount Held by the Company or for its Account | (4) Amount Outstanding Exclusive of Amount Shown Under (3) | ||||||
Common Stock | 1,000,000,000 | — | 365,480,988 |
• | one-tenth or more but less than one-third, |
• | one-third or more but less than a majority, or |
• | a majority or more of all voting power. |
• | any person who beneficially owns, directly or indirectly, 10% or more of the voting power of the corporation’s shares; or |
• | an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding voting stock of the corporation. |
• | 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and |
• | two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder. |
• | the designation and number of shares of such series; |
• | the rate and time at which, and the preferences and conditions under which, any dividends will be paid on shares of such series, the cumulative nature of such dividends and whether such dividends have any participating feature; |
• | any provisions relating to convertibility or exchangeability of the shares of such series; |
• | the rights and preferences, if any, of holders of shares of such series upon our liquidation, dissolution or winding up of our affairs; |
• | the voting powers of the holders of shares of such series; |
• | any provisions relating to the redemption of the shares of such series; |
• | any limitations on our ability to pay dividends or make distributions on, or acquire or redeem, other securities while shares of such series are outstanding; |
• | any conditions or restrictions on our ability to issue additional shares of such series or other securities; |
• | if applicable, a discussion of certain U.S. Federal income tax considerations; and |
• | any other relative power, preferences and participating, optional or special rights of shares of such series, and the qualifications, limitations or restrictions thereof. |
• | the designation or title of the series of debt securities; |
• | the total principal amount of the series of debt securities; |
• | the percentage of the principal amount at which the series of debt securities will be offered; |
• | the date or dates on which principal will be payable; |
• | the rate or rates (which may be either fixed or variable) and/or the method of determining such rate or rates of interest, if any; |
• | the date or dates from which any interest will accrue, or the method of determining such date or dates, and the date or dates on which any interest will be payable; |
• | the terms for redemption, extension or early repayment, if any; |
• | the currencies in which the series of debt securities are issued and payable; |
• | whether the amount of payments of principal, premium or interest, if any, on a series of debt securities will be determined with reference to an index, formula or other method (which could be based on one or more currencies, commodities, equity indices or other indices) and how these amounts will be determined; |
• | the place or places, if any, other than or in addition to The City of New York, of payment, transfer, conversion and/or exchange of the debt securities; |
• | the denominations in which the offered debt securities will be issued; |
• | the provision for any sinking fund; |
• | any restrictive covenants; |
• | any events of default; |
• | whether the series of debt securities are issuable in certificated form; |
• | any provisions for defeasance or covenant defeasance; |
• | any special federal income tax implications, including, if applicable, federal income tax considerations relating to original issue discount; |
• | whether and under what circumstances we will pay additional amounts in respect of any tax, assessment or governmental charge and, if so, whether we will have the option to redeem the debt securities rather than pay the additional amounts (and the terms of this option); |
• | any provisions for convertibility or exchangeability of the debt securities into or for any other securities; |
• | whether the debt securities are subject to subordination and the terms of such subordination; |
• | the listing, if any, on a securities exchange; and |
• | any other terms. |
• | how it handles securities payments and notices, |
• | whether it imposes fees or charges, |
• | how it would handle a request for the holders’ consent, if ever required, |
• | whether and how you can instruct it to send you debt securities registered in your own name so you can be a holder, if that is permitted in the future for a particular series of debt securities, |
• | how it would exercise rights under the debt securities if there were a default or other event triggering the need for holders to act to protect their interests, and |
• | if the debt securities are in book-entry form, how the depositary’s rules and procedures will affect these matters. |
• | An investor will be an indirect holder and must look to his or her own bank or broker for payments on the debt securities and protection of his or her legal rights relating to the debt securities, as we describe under “Issuance of Securities in Registered Form” above. |
• | An investor may not be able to sell interests in the debt securities to some insurance companies and other institutions that are required by law to own their securities in non-book-entry form. |
• | An investor may not be able to pledge his or her interest in a global security in circumstances where certificates representing the debt securities must be delivered to the lender or other beneficiary of the pledge in order for the pledge to be effective. |
• | The depositary’s policies, which may change from time to time, will govern payments, transfers, exchanges and other matters relating to an investor’s interest in a global security. We and the trustee have no responsibility for any aspect of the depositary’s actions or for its records of ownership interests in a global security. We and the trustee also do not supervise the depositary in any way. |
• | If we redeem less than all the debt securities of a particular series being redeemed, DTC’s practice is to determine by lot the amount to be redeemed from each of its participants holding that series. |
• | An investor is required to give notice of exercise of any option to elect repayment of its debt securities, through its participant, to the applicable trustee and to deliver the related debt securities by causing its participant to transfer its interest in those debt securities, on DTC’s records, to the applicable trustee. |
• | DTC requires that those who purchase and sell interests in a global security deposited in its book-entry system use immediately available funds. Your broker or bank may also require you to use immediately available funds when purchasing or selling interests in a global security. |
• | Financial institutions that participate in the depositary’s book-entry system, and through which an investor holds its interest in a global security, may also have their own policies affecting payments, notices and other matters relating to the debt securities. There may be more than one financial intermediary in the chain of ownership for an investor. We do not monitor and are not responsible for the actions of any of those intermediaries. |
• | if the depositary notifies us that it is unwilling, unable or no longer qualified to continue as depositary for that global security, and we do not appoint another institution to act as depositary within 60 days, |
• | if we notify the trustee that we wish to terminate that global security, or |
• | if an event of default has occurred with regard to the debt securities represented by that global security and has not been cured or waived; we discuss defaults later under “Events of Default.” |
• | We do not pay the principal of, or any premium on, a debt security of the series on its due date. |
• | We do not pay interest on a debt security of the series within 30 days of its due date. |
• | We do not deposit any sinking fund payment in respect of debt securities of the series on its due date. |
• | We remain in breach of a covenant in respect of debt securities of the series for 90 days after we receive a written notice of default stating we are in breach. The notice must be sent by either the trustee or holders of at least 25% of the principal amount of debt securities of the series. |
• | We file for bankruptcy or certain other events of bankruptcy, insolvency or reorganization occur. |
• | Any other Event of Default in respect of debt securities of the series described in the prospectus supplement occurs. |
• | You must give your trustee written notice that an Event of Default has occurred and remains uncured. |
• | The holders of at least 25% in principal amount of all outstanding debt securities of the relevant series must make a written request that the trustee take action because of the default and must offer reasonable indemnity to the trustee against the cost and other liabilities of taking that action. |
• | The trustee must not have taken action for 60 days after receipt of the above notice and offer of indemnity. |
• | The holders of a majority in principal amount of the debt securities must not have given the trustee a direction inconsistent with the above notice during that 60-day period. |
• | the payment of principal, any premium or interest or |
• | in respect of a covenant that cannot be modified or amended without the consent of each holder. |
• | Where we merge out of existence or sell our assets, the resulting entity must agree to be legally responsible for our obligations under the debt securities. |
• | The merger or sale of assets must not cause a default on the debt securities and we must not already be in default (unless the merger or sale would cure the default). For purposes of this no-default test, a default would include an Event of Default that has occurred and has not been cured, as described under “Events of Default” above. A default for this purpose would also include any event that would be an Event of Default if the requirements for giving us a notice of default or our default having to exist for a specific period of time were disregarded. |
• | Under the indenture, no merger or sale of assets may be made if as a result any of our property or assets or any property or assets of one of our subsidiaries, if any, would become subject to any mortgage, lien or other encumbrance unless either (i) the mortgage, lien or other encumbrance could be created pursuant to the limitation on liens covenant in the indenture (see “Indenture Provisions—Limitation on Liens” below) without equally and ratably securing the indenture securities or (ii) the indenture securities are secured equally and ratably with or prior to the debt secured by the mortgage, lien or other encumbrance. |
• | We must deliver certain certificates and documents to the trustee. |
• | We must satisfy any other requirements specified in the prospectus supplement relating to a particular series of debt securities. |
• | change the stated maturity of the principal of, or interest on, a debt security; |
• | reduce any amounts due on a debt security; |
• | reduce the amount of principal payable upon acceleration of the maturity of a security following a default; |
• | adversely affect any right of repayment at the holder’s option; |
• | change the place (except as otherwise described in the prospectus or prospectus supplement) or currency of payment on a debt security; |
• | impair your right to sue for payment; |
• | adversely affect any right to convert or exchange a debt security in accordance with its terms; |
• | modify the subordination provisions in the indenture in a manner that is adverse to holders of the debt securities; |
• | reduce the percentage of holders of debt securities whose consent is needed to modify or amend the indenture; |
• | reduce the percentage of holders of debt securities whose consent is needed to waive compliance with certain provisions of the indenture or to waive certain defaults; |
• | modify any other aspect of the provisions of the indenture dealing with supplemental indentures, modification and waiver of past defaults, changes to the quorum or voting requirements or the waiver of certain covenants; and |
• | change any obligation we have to pay additional amounts. |
• | If the change affects only one series of debt securities, it must be approved by the holders of a majority in principal amount of that series. |
• | If the change affects more than one series of debt securities issued under the same indenture, it must be approved by the holders of a majority in principal amount of all of the series affected by the change, with all affected series voting together as one class for this purpose. |
• | For original issue discount securities, we will use the principal amount that would be due and payable on the voting date if the maturity of these debt securities were accelerated to that date because of a default. |
• | For debt securities whose principal amount is not known (for example, because it is based on an index), we will use a special rule for that debt security described in the prospectus supplement. |
• | For debt securities denominated in one or more foreign currencies, we will use the U.S. dollar equivalent. |
• | If the debt securities of the particular series are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of such debt securities a combination of money and United States government or United States government agency notes or bonds that will generate enough cash to make interest, principal and any other payments on the debt securities on their various due dates. |
• | We must deliver to the trustee a legal opinion of our counsel confirming that, under current United States federal income tax law, we may make the above deposit without causing you to be taxed on the debt securities any differently than if we did not make the deposit and just repaid the debt securities ourselves at maturity. |
• | We must deliver to the trustee a legal opinion of our counsel stating that the above deposit does not require registration by us under the 1940 Act, as amended, and a legal opinion and officers’ certificate stating that all conditions precedent to covenant defeasance have been complied with. |
• | If the debt securities of the particular series are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of such debt securities a combination of money and United States government or United States government agency notes or bonds that will generate enough cash to make interest, principal and any other payments on the debt securities on their various due dates. |
• | We must deliver to the trustee a legal opinion confirming that there has been a change in current United States federal tax law or an IRS ruling that allows us to make the above deposit without causing you to be taxed on the debt securities any differently than if we did not make the deposit and just repaid the debt securities ourselves at maturity. Under current United States federal tax law, the deposit and our legal release from the debt securities would be treated as though we paid you your share of the cash and notes or bonds at the time the cash and notes or bonds were deposited in trust in exchange for your debt securities and you would recognize gain or loss on the debt securities at the time of the deposit. |
• | We must deliver to the trustee a legal opinion of our counsel stating that the above deposit does not require registration by us under the 1940 Act, as amended, and a legal opinion and officers’ certificate stating that all conditions precedent to defeasance have been complied with. |
• | only in fully registered certificated form, |
• | without interest coupons, and |
• | unless we indicate otherwise in the prospectus supplement, in denominations of $1,000 and amounts that are multiples of $1,000. |
• | our indebtedness (including indebtedness of others guaranteed by us), whenever created, incurred, assumed or guaranteed, for money borrowed (other than indenture securities issued under the indenture and denominated as subordinated debt securities), unless in the instrument creating or evidencing the same or under which the same is outstanding it is provided that this indebtedness is not senior or prior in right of payment to the subordinated debt securities, and |
• | renewals, extensions, modifications and refinancings of any of this indebtedness. |
• | the period of time the offering would remain open (which shall be open a minimum number of days such that all record holders would be eligible to participate in the offering and shall not be open longer than 120 days); |
• | the title of such subscription rights; |
• | the exercise price for such subscription rights (or method of calculation thereof); |
• | the ratio of the offering; |
• | the number of such subscription rights issued to each Holder; |
• | the extent to which such subscription rights are transferable and the market on which they may be traded if they are transferable; |
• | if applicable, a discussion of certain U.S. federal income tax considerations applicable to the issuance or exercise of such subscription rights; |
• | the date on which the right to exercise such subscription rights shall commence, and the date on which such right shall expire (subject to any extension); |
• | the extent to which such subscription rights include an over-subscription privilege with respect to unsubscribed securities and the terms of such over-subscription privilege; |
• | any termination right we may have in connection with such subscription rights offering; and |
• | any other terms of such subscription rights, including exercise, settlement and other procedures and limitations relating to the transfer and exercise of such subscription rights. |
• | the title of such warrants; |
• | the aggregate number of such warrants; |
• | the price or prices at which such warrants will be issued; |
• | the currency or currencies, including composite currencies, in which the price of such warrants may be payable; |
• | the number of shares of common stock, preferred stock or debt securities issuable upon exercise of such warrants; |
• | the price at which and the currency or currencies, including composite currencies, in which the shares of common stock, preferred stock or debt securities purchasable upon exercise of such warrants may be purchased; |
• | the date on which the right to exercise such warrants will commence and the date on which such right will expire; |
• | whether such warrants will be issued in registered form or bearer form; |
• | if applicable, the minimum or maximum amount of such warrants which may be exercised at any one time; |
• | if applicable, the number of such warrants issued with each share of common stock, preferred stock or debt securities; |
• | if applicable, the date on and after which such warrants and the related shares of common stock, preferred stock or debt securities will be separately transferable; |
• | information with respect to book-entry procedures, if any; |
• | if applicable, a discussion of certain U.S. federal income tax considerations; and |
• | any other terms of such warrants, including terms, procedures and limitations relating to the exchange and exercise of such warrants. |
• | the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances the securities comprising the units may be held or transferred separately; |
• | a description of the terms of any unit agreement governing the units; |
• | a description of the provisions for the payment, settlement, transfer or exchange of the units; and |
• | whether the units will be issued in fully registered or global form. |
• | copies of its proxy voting policies and procedures; |
• | copies of all proxy statements; |
• | records of all votes cast by Prospect Capital Management; |
• | copies of all documents created by Prospect Capital Management that were material to making a decision how to vote proxies or that memorializes the basis for that decision; and |
• | copies of all written client requests for information with regard to how Prospect Capital Management voted proxies on behalf of the client as well as any written responses provided. |
• | the name or names of any underwriters or agents and the amounts of Securities underwritten or placed by each of them; |
• | the offering price of the Securities and the proceeds to us and any discounts, commissions or concessions allowed or reallowed or paid to underwriters or agents; and |
• | any securities exchanges on which the Securities may be listed. |
Prospect Capital Corporation Financial Statements | ||
/s/ BDO USA, LLP |
BDO USA, LLP |
New York, New York |
August 28, 2018 |
June 30, 2018 | June 30, 2017 | ||||||
Assets | |||||||
Investments at fair value: | |||||||
Control investments (amortized cost of $2,300,526 and $1,840,731, respectively) | $ | 2,404,326 | $ | 1,911,775 | |||
Affiliate investments (amortized cost of $55,637 and $22,957, respectively) | 58,436 | 11,429 | |||||
Non-control/non-affiliate investments (amortized cost of $3,475,295 and $4,117,868, respectively) | 3,264,517 | 3,915,101 | |||||
Total investments at fair value (amortized cost of $5,831,458 and $5,981,556, respectively) | 5,727,279 | 5,838,305 | |||||
Cash | 83,758 | 318,083 | |||||
Receivables for: | |||||||
Interest, net | 19,783 | 9,559 | |||||
Other | 1,867 | 924 | |||||
Due from broker | 3,029 | — | |||||
Prepaid expenses | 984 | 1,125 | |||||
Due from Affiliate | 88 | 14 | |||||
Deferred financing costs on Revolving Credit Facility (Note 4) | 2,032 | 4,779 | |||||
Total Assets | 5,838,820 | 6,172,789 | |||||
Liabilities | |||||||
Revolving Credit Facility (Notes 4 and 8) | 37,000 | — | |||||
Convertible Notes (less unamortized debt issuance costs of $13,074 and $15,512, respectively) (Notes 5 and 8) | 809,073 | 937,641 | |||||
Prospect Capital InterNotes® (less unamortized debt issuance costs of $11,998 and $14,240, respectively) (Notes 7 and 8) | 748,926 | 966,254 | |||||
Public Notes (less unamortized discount and debt issuance costs of $11,007 and $10,981, respectively) (Notes 6 and 8) | 716,810 | 738,300 | |||||
Due to Prospect Capital Management (Note 13) | 49,045 | 48,249 | |||||
Interest payable | 33,741 | 38,630 | |||||
Dividends payable | 21,865 | 30,005 | |||||
Due to broker | 6,159 | 50,371 | |||||
Accrued expenses | 5,426 | 4,380 | |||||
Due to Prospect Administration (Note 13) | 2,212 | 1,910 | |||||
Other liabilities | 1,516 | 2,097 | |||||
Total Liabilities | 2,431,773 | 2,817,837 | |||||
Commitments and Contingencies (Note 3) | — | — | |||||
Net Assets | $ | 3,407,047 | $ | 3,354,952 | |||
Components of Net Assets | |||||||
Common stock, par value $0.001 per share (1,000,000,000 common shares authorized; 364,409,938 and 360,076,933 issued and outstanding, respectively) (Note 9) | $ | 364 | $ | 360 | |||
Paid-in capital in excess of par (Note 9) | 4,021,541 | 3,991,317 | |||||
Accumulated overdistributed net investment income | (45,186 | ) | (54,039 | ) | |||
Accumulated net realized loss | (465,493 | ) | (439,435 | ) | |||
Net unrealized loss | (104,179 | ) | (143,251 | ) | |||
Net Assets | $ | 3,407,047 | $ | 3,354,952 | |||
Net Asset Value Per Share (Note 16) | $ | 9.35 | $ | 9.32 |
Year Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Investment Income | |||||||||||
Interest income: | |||||||||||
Control investments | $ | 195,487 | $ | 177,496 | $ | 207,377 | |||||
Affiliate investments | 553 | 297 | 896 | ||||||||
Non-control/non-affiliate investments | 285,473 | 342,696 | 347,132 | ||||||||
Structured credit securities | 125,499 | 148,228 | 176,213 | ||||||||
Total interest income | 607,012 | 668,717 | 731,618 | ||||||||
Dividend income: | |||||||||||
Control investments | 11,279 | 5,250 | 26,435 | ||||||||
Non-control/non-affiliate investments | 1,767 | 429 | 66 | ||||||||
Total dividend income | 13,046 | 5,679 | 26,501 | ||||||||
Other income: | |||||||||||
Control investments | 15,080 | 11,470 | 22,528 | ||||||||
Non-control/non-affiliate investments | 22,707 | 15,180 | 11,326 | ||||||||
Total other income (Note 10) | 37,787 | 26,650 | 33,854 | ||||||||
Total Investment Income | 657,845 | 701,046 | 791,973 | ||||||||
Operating Expenses | |||||||||||
Base management fee (Note 13) | 118,046 | 122,874 | 126,523 | ||||||||
Income incentive fee (Note 13) | 71,713 | 76,520 | 92,782 | ||||||||
Interest and credit facility expenses | 155,039 | 164,848 | 167,719 | ||||||||
Allocation of overhead from Prospect Administration (Note 13) | 10,031 | 13,246 | 12,647 | ||||||||
Audit, compliance and tax related fees | 5,539 | 5,088 | 4,428 | ||||||||
Directors’ fees | 450 | 454 | 379 | ||||||||
Excise tax | — | (1,100 | ) | 2,295 | |||||||
Other general and administrative expenses | 10,177 | 13,034 | 14,072 | ||||||||
Total Operating Expenses | 370,995 | 394,964 | 420,845 | ||||||||
Net Investment Income | 286,850 | 306,082 | 371,128 | ||||||||
Net Realized and Change in Unrealized Gains (Losses) from Investments | |||||||||||
Net realized gains (losses) | |||||||||||
Control investments | 13 | (65,915 | ) | (5,406 | ) | ||||||
Affiliate investments | (13,351 | ) | 137 | (14,194 | ) | ||||||
Non-control/non-affiliate investments | (5,126 | ) | (30,528 | ) | (4,817 | ) | |||||
Net realized losses | (18,464 | ) | (96,306 | ) | (24,417 | ) | |||||
Net change in unrealized gains (losses) | |||||||||||
Control investments | 55,670 | 86,817 | (88,751 | ) | |||||||
Affiliate investments | 25,671 | 553 | (233 | ) | |||||||
Non-control/non-affiliate investments | (42,270 | ) | (37,229 | ) | (154,589 | ) | |||||
Net change in unrealized gains (losses) | 39,071 | 50,141 | (243,573 | ) | |||||||
Net Realized and Change in Unrealized Gains (Losses) from Investments | 20,607 | (46,165 | ) | (267,990 | ) | ||||||
Net realized (losses) gains on extinguishment of debt | (7,594 | ) | (7,011 | ) | 224 | ||||||
Net Increase in Net Assets Resulting from Operations | $ | 299,863 | $ | 252,906 | $ | 103,362 | |||||
Net increase in net assets resulting from operations per share | $ | 0.83 | $ | 0.70 | $ | 0.29 | |||||
Dividends declared per share | $ | (0.77 | ) | $ | (1.00 | ) | $ | (1.00 | ) |
Year Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Operations | |||||||||||
Net investment income | $ | 286,850 | $ | 306,082 | $ | 371,128 | |||||
Net realized losses | (26,058 | ) | (103,317 | ) | (24,193 | ) | |||||
Net change in unrealized gains (losses) | 39,071 | 50,141 | (243,573 | ) | |||||||
Net Increase in Net Assets Resulting from Operations | 299,863 | 252,906 | 103,362 | ||||||||
Distributions to Shareholders | |||||||||||
Distribution from net investment income | (277,224 | ) | (358,987 | ) | (356,110 | ) | |||||
Net Decrease in Net Assets Resulting from Distributions to Shareholders | (277,224 | ) | (358,987 | ) | (356,110 | ) | |||||
Common Stock Transactions | |||||||||||
Offering costs from issuance of common stock | — | — | 118 | ||||||||
Repurchase of common stock under stock repurchase program | — | — | (34,140 | ) | |||||||
Value of shares issued through reinvestment of dividends | 29,456 | 25,116 | 19,638 | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Common Stock Transactions | 29,456 | 25,116 | (14,384 | ) | |||||||
Total Increase (Decrease) in Net Assets | 52,095 | (80,965 | ) | (267,132 | ) | ||||||
Net assets at beginning of year | 3,354,952 | 3,435,917 | 3,703,049 | ||||||||
Net Assets at End of Year (Accumulated Overdistributed Net Investment Income of $50,897, $54,039, and $3,623, respectively) | $ | 3,407,047 | $ | 3,354,952 | $ | 3,435,917 | |||||
Common Stock Activity | |||||||||||
Shares repurchased under stock repurchase program | — | — | (4,708,750 | ) | |||||||
Shares issued through reinvestment of dividends | 4,333,005 | 2,969,702 | 2,725,222 | ||||||||
Net shares issued (repurchased) due to common stock activity | 4,333,005 | 2,969,702 | (1,983,528 | ) | |||||||
Shares issued and outstanding at beginning of year | 360,076,933 | 357,107,231 | 359,090,759 | ||||||||
Shares Issued and Outstanding at End of Year | 364,409,938 | 360,076,933 | 357,107,231 |
Year Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Operating Activities | |||||||||||
Net increase in net assets resulting from operations | $ | 299,863 | $ | 252,906 | $ | 103,362 | |||||
Net realized losses (gains) on extinguishment of debt | 7,594 | 7,011 | (224 | ) | |||||||
Net realized losses on investments | 18,464 | 96,306 | 24,417 | ||||||||
Net change in unrealized (gains) losses on investments | (39,071 | ) | (50,141 | ) | 243,573 | ||||||
Amortization of discounts, net | 31,005 | 88,827 | 84,087 | ||||||||
Accretion of discount on Public Notes (Note 6) | 226 | 269 | 200 | ||||||||
Amortization of deferred financing costs | 12,063 | 13,013 | 13,561 | ||||||||
Payment-in-kind interest | (9,404 | ) | (17,808 | ) | (20,531 | ) | |||||
Structuring fees | (13,959 | ) | (12,929 | ) | (9,393 | ) | |||||
Change in operating assets and liabilities: | |||||||||||
Payments for purchases of investments | (1,707,294 | ) | (1,458,733 | ) | (921,679 | ) | |||||
Proceeds from sale of investments and collection of investment principal | 1,831,286 | 1,413,882 | 1,311,375 | ||||||||
(Decrease) increase in due to broker | (44,212 | ) | 49,414 | (25,821 | ) | ||||||
(Decrease) increase in due to Prospect Capital Management | 796 | (5,900 | ) | 51,599 | |||||||
(Increase) in due from broker | (3,029 | ) | — | — | |||||||
(Increase) decrease in interest receivable, net | (10,224 | ) | 2,568 | 8,281 | |||||||
(Decrease) increase in interest payable | (4,889 | ) | (2,174 | ) | 1,145 | ||||||
Increase (decrease) in accrued expenses | 1,046 | 2,121 | (1,149 | ) | |||||||
(Decrease) in other liabilities | (581 | ) | (1,536 | ) | (1,080 | ) | |||||
(Increase) decrease in other receivables | (943 | ) | (756 | ) | 2,717 | ||||||
(Increase) in due from affiliate | (74 | ) | (14 | ) | — | ||||||
Decrease (increase) in prepaid expenses | 141 | (270 | ) | (98 | ) | ||||||
Increase (decrease) in due to Prospect Administration | 302 | 145 | (2,473 | ) | |||||||
Net Cash Provided by Operating Activities | 369,106 | 376,201 | 861,869 | ||||||||
Financing Activities | |||||||||||
Borrowings under Revolving Credit Facility (Note 4) | 810,000 | 635,000 | 615,000 | ||||||||
Principal payments under Revolving Credit Facility (Note 4) | (773,000 | ) | (635,000 | ) | (983,700 | ) | |||||
Issuances of Public Notes, net of original issue discount (Note 6) | 125,000 | 37,466 | 161,364 | ||||||||
Repurchase of Public Notes (Note 6) | (146,464 | ) | — | — | |||||||
Redemptions of Convertible Notes (Note 5) | (234,506 | ) | (366,433 | ) | (150,500 | ) | |||||
Issuance of Convertible Notes (Note 5) | 103,500 | 225,000 | — | ||||||||
Issuances of Prospect Capital InterNotes® (Note 7) | 76,297 | 138,882 | 88,435 | ||||||||
Redemptions of Prospect Capital InterNotes®, net (Note 7) | (295,867 | ) | (67,196 | ) | (7,069 | ) | |||||
Financing costs paid | (12,480 | ) | (10,012 | ) | (6,968 | ) | |||||
Cost of shares repurchased under stock repurchase program | — | — | (34,140 | ) | |||||||
Offering costs from issuance of common stock | — | — | 118 | ||||||||
Dividends paid | (255,911 | ) | (333,623 | ) | (336,637 | ) | |||||
Net Cash Used in Financing Activities | (603,431 | ) | (375,916 | ) | (654,097 | ) | |||||
Net (Decrease) Increase in Cash | (234,325 | ) | 285 | 207,772 | |||||||
Cash at beginning of year | 318,083 | 317,798 | 110,026 | ||||||||
Cash at End of year | $ | 83,758 | $ | 318,083 | $ | 317,798 | |||||
Supplemental Disclosures | |||||||||||
Cash paid for interest | $ | 147,639 | $ | 153,740 | $ | 152,817 | |||||
Non-Cash Financing Activities | |||||||||||
Value of shares issued through reinvestment of dividends | $ | 29,456 | $ | 25,116 | $ | 19,638 | |||||
Cost basis of investments written off as worthless | $ | 20,316 | $ | 86,605 | $ | 25,138 |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(47) | ||||||||||||
CCPI Inc.(19) | Ohio / Electronic Equipment, Instruments & Components | Senior Secured Term Loan A (10.00%, due 12/31/2020)(3) | $ | 2,881 | $ | 2,881 | $ | 2,881 | 0.1% | |||
Senior Secured Term Loan B (12.00% plus 7.00% PIK, due 12/31/2020)(3)(46) | 17,819 | 17,819 | 17,819 | 0.5% | ||||||||
Common Stock (14,857 shares)(16) | — | 6,759 | 15,056 | 0.4% | ||||||||
27,459 | 35,756 | 1.0% | ||||||||||
CP Energy Services Inc.(20) | Oklahoma / Energy Equipment & Services | Senior Secured Term Loan (13.31% (LIBOR + 11.00% with 1.00% LIBOR floor), due 12/29/2022)(11) | 35,048 | 35,048 | 35,048 | 1.0% | ||||||
Series B Convertible Preferred Stock (16.00%, 790 shares)(16) | — | 63,225 | 63,225 | 1.9% | ||||||||
Common Stock (102,924 shares)(16) | — | 81,203 | 24,988 | 0.7% | ||||||||
179,476 | 123,261 | 3.6% | ||||||||||
Credit Central Loan Company, LLC(21) | South Carolina / Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2024)(14)(46) | 51,855 | 47,496 | 51,855 | 1.5% | ||||||
Class A Units (10,640,642 units)(14)(16) | — | 13,731 | 23,196 | 0.7% | ||||||||
Net Revenues Interest (25% of Net Revenues)(14)(16) | — | — | 1,626 | 0.1% | ||||||||
61,227 | 76,677 | 2.3% | ||||||||||
Echelon Transportation, LLC (f/a/a Echelon Aviation, LLC) | New York / Aerospace & Defense | Senior Secured Term Loan (11.75% (LIBOR + 9.75% with 2.00% LIBOR floor) plus 2.25% PIK, due 3/31/2022)(13)(46) | 31,055 | 31,055 | 31,055 | 0.9% | ||||||
Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.00% PIK, due 12/7/2024)(13)(46) | 16,044 | 16,044 | 16,044 | 0.5% | ||||||||
Membership Interest (100%)(16) | — | 22,738 | 35,179 | 1.0% | ||||||||
69,837 | 82,278 | 2.4% | ||||||||||
First Tower Finance Company LLC(23) | Mississippi / Consumer Finance | Subordinated Term Loan to First Tower, LLC (10.00% plus 10.00% PIK, due 6/24/2019)(14)(46) | 273,066 | 273,066 | 273,066 | 8.0% | ||||||
Class A Units (95,709,910 units)(14)(16) | — | 81,146 | 169,944 | 5.0% | ||||||||
354,212 | 443,010 | 13.0% | ||||||||||
Freedom Marine Solutions, LLC(24) | Louisiana / Energy Equipment & Services | Membership Interest (100%)(16) | — | 43,592 | 13,037 | 0.4% | ||||||
43,592 | 13,037 | 0.4% | ||||||||||
InterDent, Inc. (52) | California / Health Care Providers & Services | Senior Secured Term Loan A (7.59% (LIBOR + 5.50% with 0.75% LIBOR floor), due 12/31/2017, past due)(13) | 77,994 | 77,994 | 77,994 | 2.3% | ||||||
Senior Secured Term Loan B (8.34% (LIBOR + 6.25% with 0.75% LIBOR floor) plus 4.25% PIK, due 12/31/2017, past due)(13) | 131,558 | 131,558 | 119,627 | 3.5% | ||||||||
Senior Secured Term Loan C (18.00% PIK, due on demand)(46) | 3,149 | 3,149 | — | —% | ||||||||
Warrants (to purchase 4,900 shares of Common Stock, expires 3/22/2030)(16) | — | — | — | —% | ||||||||
212,701 | 197,621 | 5.8% |
MITY, Inc.(25) | Utah / Commercial Services & Supplies | Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 1/30/2020)(3)(11) | $ | 26,250 | $ | 26,250 | $ | 26,250 | 0.8% | |||
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 1/30/2020)(3)(11)(46) | 24,442 | 24,442 | 24,442 | 0.7% | ||||||||
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due on demand)(14) | 5,563 | 7,200 | 5,563 | 0.1% | ||||||||
Common Stock (42,053 shares)(16) | — | 6,849 | 2,639 | 0.1% | ||||||||
64,741 | 58,894 | 1.7% | ||||||||||
National Property REIT Corp.(26) | Various / Equity Real Estate Investment Trusts (REITs) / Online Lending | Senior Secured Term Loan A (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 10.50% PIK, due 4/1/2019)(13)(46) | 293,203 | 293,203 | 293,203 | 8.6% | ||||||
Senior Secured Term Loan E (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.50% PIK, due 4/1/2019)(13)(46) | 226,180 | 226,180 | 226,180 | 6.7% | ||||||||
Common Stock (3,042,393 shares) | — | 307,604 | 436,105 | 12.8% | ||||||||
Net Operating Income Interest (5% of Net Operating Income) | — | — | 99,488 | 2.9% | ||||||||
826,987 | 1,054,976 | 31.0% | ||||||||||
Nationwide Loan Company LLC(27) | Illinois / Consumer Finance | Senior Subordinated Term Loan to Nationwide Acceptance LLC (10.00% plus 10.00% PIK, due 6/18/2019)(14)(46) | 17,410 | 17,410 | 17,410 | 0.5% | ||||||
Class A Units (32,456,159 units)(14)(16) | — | 21,962 | 16,443 | 0.5% | ||||||||
39,372 | 33,853 | 1.0% | ||||||||||
NMMB, Inc.(28) | New York / Media | Senior Secured Note (14.00%, due 5/6/2021)(3) | 3,714 | 3,714 | 3,714 | 0.1% | ||||||
Senior Secured Note to Armed Forces Communications, Inc. (14.00%, due 5/6/2021)(3) | 4,900 | 4,900 | 4,900 | 0.2% | ||||||||
Series A Preferred Stock (7,200 shares)(16) | — | 7,200 | 5,663 | 0.2% | ||||||||
Series B Preferred Stock (5,669 shares)(16) | — | 5,669 | 4,458 | 0.1% | ||||||||
21,483 | 18,735 | 0.6% | ||||||||||
Pacific World Corporation(40) | California / Personal Products | Revolving Line of Credit – $26,000 Commitment (9.34% (LIBOR + 7.25% with 1.00% LIBOR floor), due 9/26/2020)(13)(15) | 20,825 | 20,825 | 20,825 | 0.6% | ||||||
Senior Secured Term Loan A (7.34% (LIBOR + 5.25% with 1.00% LIBOR floor), due 9/26/2020)(13) | 96,250 | 96,250 | 96,250 | 2.8% | ||||||||
Senior Secured Term Loan B (11.34% PIK (LIBOR + 9.25% with 1.00% LIBOR floor), in non-accrual status effective 5/21/2018, due 9/26/2020)(13) | 96,500 | 96,500 | 47,945 | 1.4% | ||||||||
Convertible Preferred Equity (100,000 shares)(16) | — | 15,000 | — | —% | ||||||||
Common Stock (6,778,414 shares)(16) | — | — | — | —% | ||||||||
228,575 | 165,020 | 4.8% | ||||||||||
R-V Industries, Inc. | Pennsylvania / Machinery | Senior Subordinated Note (11.34% (LIBOR + 9.00% with 1.00% LIBOR floor), due 3/31/2022)(11) | 28,622 | 28,622 | 28,622 | 0.8% | ||||||
Common Stock (745,107 shares)(16) | — | 6,866 | 3,264 | 0.1% | ||||||||
35,488 | 31,886 | 0.9% | ||||||||||
SB Forging Company II, Inc. (f/k/a Gulf Coast Machine & Supply Company)(29) | Texas / Energy Equipment & Services | Series A Convertible Preferred Stock (6.50%, 99,000 shares)(16) | $ | — | $ | — | $ | 2,194 | 0.1% | |||
Common Stock (100 shares)(16) | — | — | — | —% | ||||||||
— | 2,194 | 0.1% |
USES Corp.(30) | Texas / Commercial Services & Supplies | Senior Secured Term Loan A (9.00% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | 36,964 | 31,601 | 16,319 | 0.5% | ||||||
Senior Secured Term Loan B (15.50% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | 47,866 | 35,568 | — | —% | ||||||||
Common Stock (268,962 shares)(16) | — | — | — | —% | ||||||||
67,169 | 16,319 | 0.5% | ||||||||||
Valley Electric Company, Inc.(31) | Washington / Construction & Engineering | Senior Secured Note to Valley Electric Co. of Mt. Vernon, Inc. (8.00% (LIBOR + 5.00% with 3.00% LIBOR floor) plus 2.50% PIK, due 12/31/2024)(3)(11)(46) | 10,430 | 10,430 | 10,430 | 0.3% | ||||||
Senior Secured Note (8.00% plus 10.00% PIK, due 6/23/2024)(46) | 27,781 | 27,781 | 27,781 | 0.8% | ||||||||
Consolidated Revenue Interest (2.0%) | — | — | — | —% | ||||||||
Common Stock (50,000 shares)(16) | — | 26,204 | 12,586 | 0.4% | ||||||||
64,415 | 50,797 | 1.5% | ||||||||||
Wolf Energy, LLC(32) | Kansas / Energy Equipment & Services | Membership Interest (100%)(16) | — | — | — | —% | ||||||
Membership Interest in Wolf Energy Services Company, LLC (100%)(16) | — | 3,792 | — | —% | ||||||||
Net Profits Interest (8% of Equity Distributions)(4)(16) | — | — | 12 | —% | ||||||||
3,792 | 12 | —% | ||||||||||
Total Control Investments (Level 3) | $ | 2,300,526 | $ | 2,404,326 | 70.6% |
June 30, 2018 | |||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | |||||||
LEVEL 3 PORTFOLIO INVESTMENTS | |||||||||||||
Affiliate Investments (5.00% to 24.99% voting control)(48) | |||||||||||||
Edmentum Ultimate Holdings, LLC(22) | Minnesota / Diversified Consumer Services | Second Lien Revolving Credit Facility to Edmentum, Inc. – $7,834 Commitment (5.00%, due 12/9/2021)(15) | $ | 7,834 | $ | 7,834 | $ | 7,834 | 0.2 | % | |||
Unsecured Senior PIK Note (8.50% PIK, due 12/9/2021)(46) | 7,520 | 7,520 | 7,520 | 0.2 | % | ||||||||
Unsecured Junior PIK Note (10.00% PIK, in non-accrual status effective 1/1/2017, due 12/9/2021) | 35,226 | 23,828 | 19,862 | 0.6 | % | ||||||||
Class A Units (370,964 units)(16) | — | 6,577 | — | — | % | ||||||||
45,759 | 35,216 | 1.0 | % | ||||||||||
Nixon, Inc.(39) | California / Textiles, Apparel & Luxury Goods | Common Stock (857 units)(16) | — | — | — | — | % | ||||||
— | — | — | % | ||||||||||
Targus International, LLC(33) | California / Textiles, Apparel & Luxury Goods | Common Stock (7,383,395 shares)(16) | — | 9,878 | 23,220 | 0.7 | % | ||||||
9,878 | 23,220 | 0.7 | % | ||||||||||
Total Affiliate Investments (Level 3) | $ | 55,637 | $ | 58,436 | 1.7 | % |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
ACE Cash Express, Inc. | Texas / Consumer Finance | Senior Secured Note (12.00%, due 12/15/2022)(8)(14) | $ | 20,000 | $ | 19,733 | $ | 21,594 | 0.6% | |||
19,733 | 21,594 | 0.6% | ||||||||||
AgaMatrix, Inc. | New Hampshire / Healthcare Equipment and Supplies | Senior Secured Term Loan (11.33% (LIBOR + 9.00% with 1.25% LIBOR floor), due 9/29/2022)(3)(11) | 35,815 | 35,815 | 35,815 | 1.1% | ||||||
35,815 | 35,815 | 1.1% | ||||||||||
American Gilsonite Company(34) | Utah / Chemicals | Membership Interest (0.05%, 131 shares)(16) | — | — | — | —% | ||||||
— | — | —% | ||||||||||
Apidos CLO IX | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 7/15/2023)(5)(14)(17) | 23,525 | 21 | 76 | —% | ||||||
21 | 76 | —% | ||||||||||
Apidos CLO XI | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 7.80%, due 1/17/2028)(5)(14) | 40,500 | 32,397 | 25,000 | 0.7% | ||||||
32,397 | 25,000 | 0.7% | ||||||||||
Apidos CLO XII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.35%, due 4/15/2031)(5)(14) | 52,203 | 35,014 | 26,518 | 0.8% | ||||||
35,014 | 26,518 | 0.8% | ||||||||||
Apidos CLO XV | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.14%, due 4/20/2031)(5)(14) | 48,515 | 35,776 | 26,960 | 0.8% | ||||||
35,776 | 26,960 | 0.8% | ||||||||||
Apidos CLO XXII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.65%, due 10/20/2027)(5)(6)(14) | 31,350 | 27,496 | 25,047 | 0.7% | ||||||
27,496 | 25,047 | 0.7% | ||||||||||
Ark-La-Tex Wireline Services, LLC | Louisiana / Energy Equipment & Services | Senior Secured Term Loan B (13.59% (LIBOR + 11.50% with 1.00% LIBOR floor), in non-accrual status effective 4/1/2016, due 4/8/2019)(13) | 25,595 | 1,145 | 787 | —% | ||||||
1,145 | 787 | —% | ||||||||||
Armor Holding II LLC | New York / Commercial Services & Supplies | Second Lien Term Loan (11.10% (LIBOR + 9.00% with 1.25% LIBOR floor), due 12/26/2020)(3)(8)(13) | 7,000 | 6,949 | 7,000 | 0.2% | ||||||
6,949 | 7,000 | 0.2% | ||||||||||
Atlantis Health Care Group (Puerto Rico), Inc. | Puerto Rico / Health Care Providers & Services | Revolving Line of Credit – $7,000 Commitment (10.81% (LIBOR + 8.50% with 1.50% LIBOR floor), due 8/21/2019)(11)(15) | 7,000 | 7,000 | 6,900 | 0.2% | ||||||
Senior Term Loan (10.81% (LIBOR + 8.50% with 1.50% LIBOR floor), due 2/21/2020)(3)(11) | 77,713 | 77,713 | 76,607 | 2.2% | ||||||||
84,713 | 83,507 | 2.4% |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
ATS Consolidated, Inc. | Arizona / Electronic Equipment, Instruments & Components | Second Lien Term Loan (9.84% (LIBOR + 7.75%, due 2/27/2026)(8)(13) | $ | 15,000 | $ | 14,856 | $ | 14,873 | 0.4% | |||
14,856 | 14,873 | 0.4% | ||||||||||
Autodata, Inc. / Autodata Solutions, Inc.(9) | Canada / Software | Second Lien Term Loan (9.34% (LIBOR + 7.25% with 1.00% LIBOR floor), due 12/12/2025)(8)(13) | 6,000 | 5,972 | 5,972 | 0.2% | ||||||
5,972 | 5,972 | 0.2% | ||||||||||
Barings CLO 2018-III (f/k/a Babson CLO Ltd. 2014-III) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 11.35%, due 7/20/2029)(5)(6)(14) | 83,098 | 49,688 | 46,933 | 1.4% | ||||||
49,688 | 46,933 | 1.4% | ||||||||||
Broder Bros., Co. | Pennsylvania / Textiles, Apparel & Luxury Goods | Senior Secured Note (10.33% (LIBOR + 8.00% with 1.25% LIBOR floor), due 12/02/2022)(3)(11) | 274,009 | 274,009 | 274,009 | 8.0% | ||||||
274,009 | 274,009 | 8.0% | ||||||||||
Brookside Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 8.73%, due 1/18/2028)(5)(14) | 36,300 | 19,287 | 13,466 | 0.4% | ||||||
19,287 | 13,466 | 0.4% | ||||||||||
California Street CLO IX Ltd. (f/k/a Symphony CLO IX Ltd.) | Cayman Islands / Structured Finance | Preference Shares (Residual Interest, current yield 12.20%, due 10/16/2028)(5)(14) | 58,915 | 41,645 | 35,852 | 1.1% | ||||||
41,645 | 35,852 | 1.1% | ||||||||||
Candle-Lite Company, LLC | Ohio / Household & Personal Products | Senior Secured Term Loan A (7.81% (LIBOR + 5.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11) | 12,438 | 12,438 | 12,438 | 0.3% | ||||||
Senior Secured Term Loan B (11.81% (LIBOR + 9.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11) | 12,500 | 12,500 | 12,500 | 0.4% | ||||||||
24,938 | 24,938 | 0.7% | ||||||||||
Capstone Logistics Acquisition, Inc. | Georgia / Commercial Services & Supplies | Second Lien Term Loan (10.34% (LIBOR + 8.25% with 1.00% LIBOR floor), due 10/7/2022)(3)(8)(13) | 101,030 | 100,669 | 100,136 | 2.9% | ||||||
100,669 | 100,136 | 2.9% | ||||||||||
Carlyle Global Market Strategies CLO 2014-4-R, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 20.73%, due 7/15/2030)(5)(6)(14) | 25,534 | 17,832 | 18,807 | 0.6% | ||||||
17,832 | 18,807 | 0.6% | ||||||||||
Carlyle Global Market Strategies CLO 2016-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 18.00%, due 10/20/2029)(5)(6)(14) | 32,200 | 32,364 | 29,080 | 0.9% | ||||||
32,364 | 29,080 | 0.9% | ||||||||||
Carlyle C17 CLO Limited (f/k/a Cent CLO 17 Limited) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 18.34%, due 4/30/2031)(5)(14) | 24,870 | 15,140 | 15,196 | 0.4% | ||||||
15,140 | 15,196 | 0.4% | ||||||||||
Cent CLO 20 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.40%, due 1/25/2026)(5)(14) | 40,275 | 31,692 | 28,269 | 0.8% | ||||||
31,692 | 28,269 | 0.8% | ||||||||||
Cent CLO 21 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.56%, due 7/27/2026)(5)(6)(14) | 48,528 | 36,311 | 33,703 | 1.0% | ||||||
36,311 | 33,703 | 1.0% |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Centerfield Media Holding Company(35) | California / Internet Software & Services | Senior Secured Term Loan A (9.31% (LIBOR + 7.00% with 2.00% LIBOR floor), due 1/17/2022)(3)(11) | $ | 66,300 | $ | 66,300 | $ | 66,300 | 1.9% | |||
Senior Secured Term Loan B (14.81% (LIBOR + 12.50% with 2.00% LIBOR floor), due 1/17/2022)(11) | 68,000 | 68,000 | 68,000 | 2.0% | ||||||||
134,300 | 134,300 | 3.9% | ||||||||||
CIFC Funding 2013-III-R, Ltd. (f/k/a CIFC Funding 2013-III, Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.43%, due 4/24/2031)(5)(14) | 44,100 | 27,624 | 25,250 | 0.7% | ||||||
27,624 | 25,250 | 0.7% | ||||||||||
CIFC Funding 2013-IV, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.31%, due 4/28/2031)(5)(14) | 45,500 | 31,503 | 27,697 | 0.8% | ||||||
31,503 | 27,697 | 0.8% | ||||||||||
CIFC Funding 2014-IV Investor, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 8.46%, due 10/19/2026)(5)(6)(14) | 41,500 | 28,512 | 23,715 | 0.7% | ||||||
28,512 | 23,715 | 0.7% | ||||||||||
CIFC Funding 2016-I, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 13.11%, due 10/21/2028)(5)(6)(14) | 34,000 | 31,179 | 27,998 | 0.8% | ||||||
31,179 | 27,998 | 0.8% | ||||||||||
Cinedigm DC Holdings, LLC | New York / Media | Senior Secured Term Loan (11.31% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021)(11)(46) | 31,460 | 31,410 | 31,460 | 0.9% | ||||||
31,410 | 31,460 | 0.9% | ||||||||||
Class Appraisal, LLC | Michigan / Real Estate Management & Development | Revolving Line of Credit – $1,500 Commitment (10.58% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/12/2020)(11)(15) | — | — | — | —% | ||||||
Senior Secured Term Loan (10.58% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/10/2023)(3)(11) | 41,860 | 41,860 | 41,860 | 1.2% | ||||||||
41,860 | 41,860 | 1.2% | ||||||||||
Coverall North America, Inc. | Florida / Commercial Services & Supplies | Senior Secured Term Loan A (8.31% (LIBOR + 6.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11) | 19,100 | 19,100 | 19,100 | 0.6% | ||||||
Senior Secured Term Loan B (13.31% (LIBOR + 11.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11) | 24,750 | 24,750 | 24,750 | 0.7% | ||||||||
43,850 | 43,850 | 1.3% | ||||||||||
CP VI Bella Midco | Pennsylvania / IT Services | Second Lien Term Loan (8.84% (LIBOR + 6.75%, due 12/29/2025)(8)(13) | 2,000 | 1,990 | 1,990 | 0.1% | ||||||
1,990 | 1,990 | 0.1% | ||||||||||
CURO Financial Technologies Corp. | Canada / Consumer Finance | Senior Secured Notes (12.00%, due 3/1/2022)(8)(14) | 10,896 | 10,837 | 11,844 | 0.3% | ||||||
10,837 | 11,844 | 0.3% | ||||||||||
Digital Room, LLC | California / Commercial Services & Supplies | First Lien Term Loan (7.10% (LIBOR + 5.00% with 1.00% LIBOR floor), due 12/29/2023)(3)(8)(13) | 9,950 | 9,857 | 9,925 | 0.3% | ||||||
Second Lien Term Loan (10.85% (LIBOR + 8.75% with 1.00% LIBOR floor), due 12/29/2024)(3)(8)(13) | 57,100 | 56,295 | 57,100 | 1.7% | ||||||||
66,152 | 67,025 | 2.0% |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Dunn Paper, Inc. | Georgia / Paper & Forest Products | Second Lien Term Loan (10.84% (LIBOR + 8.75% with 1.00% LIBOR floor), due 8/26/2023)(3)(8)(13) | $ | 11,500 | $ | 11,328 | $ | 11,226 | 0.3% | |||
11,328 | 11,226 | 0.3% | ||||||||||
Easy Gardener Products, Inc. | Texas / Household Durables | Senior Secured Term Loan (12.31% (LIBOR + 10.00% with 0.25% LIBOR floor), due 09/30/2020)(11) | 16,894 | 16,894 | 15,728 | 0.5% | ||||||
16,894 | 15,728 | 0.5% | ||||||||||
Engine Group, Inc.(7) | California / Media | Senior Secured Term Loan (7.08% (LIBOR + 4.75% with 1.00% LIBOR floor), due 9/15/2022)(8)(11) | 4,813 | 4,813 | 4,813 | 0.1% | ||||||
Second Lien Term Loan (11.08% (LIBOR + 8.75% with 1.00% LIBOR floor), due 9/15/2023)(3)(8)(11) | 35,000 | 35,000 | 35,000 | 1.0% | ||||||||
39,813 | 39,813 | 1.1% | ||||||||||
EXC Holdings III Corp | Massachusetts / Technology Hardware, Storage & Peripherals | Second Lien Term Loan (9.97% (LIBOR + 7.50% with 1.00% LIBOR floor), due 12/01/2025)(8)(10) | 12,500 | 12,384 | 12,500 | 0.4% | ||||||
12,384 | 12,500 | 0.4% | ||||||||||
Fleetwash, Inc. | New Jersey / Commercial Services & Supplies | Senior Secured Term Loan B (11.31% (LIBOR + 9.00% with 1.00% LIBOR floor), due 4/30/2022)(3)(11) | 21,544 | 21,544 | 21,544 | 0.6% | ||||||
Delayed Draw Term Loan – $15,000 Commitment (10.31% (LIBOR + 8.00% with 1.00% LIBOR floor), expires 4/30/2022)(11)(15) | — | — | — | —% | ||||||||
21,544 | 21,544 | 0.6% | ||||||||||
Galaxy XV CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.42%, due 10/15/2030)(5)(14) | 50,525 | 34,853 | 30,457 | 0.9% | ||||||
34,853 | 30,457 | 0.9% | ||||||||||
Galaxy XXVII CLO, Ltd. (f/k/a Galaxy XVI CLO, Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.57%, due 5/16/2031)(5)(14) | 24,575 | 16,936 | 13,688 | 0.4% | ||||||
16,936 | 13,688 | 0.4% | ||||||||||
Galaxy XXVIII CLO, Ltd. (f/k/a Galaxy XVII CLO, Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 10.89%, due 7/15/2031)(5)(6)(14) | 39,905 | 28,009 | 22,335 | 0.7% | ||||||
28,009 | 22,335 | 0.7% | ||||||||||
Galaxy XXVIII CLO, Ltd. | Cayman Islands / Structured Finance | Class F Junior Notes (LIBOR + 8.48%, due 7/15/2031)(6)(11)(14)(53) | 6,658 | 6,159 | 6,159 | 0.2% | ||||||
6,159 | 6,159 | 0.2% | ||||||||||
H.I.G. ECI Merger Sub, Inc. | Massachusetts / IT Services | Revolving Line of Credit – $5,000 Commitment (9.81% (LIBOR + 7.50% with 1.50% LIBOR floor), due 9/30/2018)(11) | — | — | — | —% | ||||||
Senior Secured Term Loan A (7.81% (LIBOR + 5.50% with 1.50% LIBOR floor), due 5/31/2023)(11) | 44,688 | 44,688 | 44,688 | 1.3% | ||||||||
Senior Secured Term Loan B (12.81% (LIBOR + 10.50% with 1.50% LIBOR floor), due 5/31/2023)(11) | 29,900 | 29,900 | 29,900 | 0.9% | ||||||||
74,588 | 74,588 | 2.2% | ||||||||||
Halcyon Loan Advisors Funding 2012-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 8/15/2023)(5)(14)(17) | 23,188 | 3,869 | 3,125 | 0.1% | ||||||
3,869 | 3,125 | 0.1% |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Halcyon Loan Advisors Funding 2013-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 4/15/2025)(5)(14)(17) | $ | 40,400 | $ | 22,057 | $ | 11,017 | 0.3% | |||
22,057 | 11,017 | 0.3% | ||||||||||
Halcyon Loan Advisors Funding 2014-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 10.30%, due 4/18/2026)(5)(14) | 24,500 | 14,007 | 11,647 | 0.3% | ||||||
14,007 | 11,647 | 0.3% | ||||||||||
Halcyon Loan Advisors Funding 2014-2 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 8.64%, due 4/28/2025)(5)(6)(14) | 41,164 | 24,290 | 19,050 | 0.6% | ||||||
24,290 | 19,050 | 0.6% | ||||||||||
Halcyon Loan Advisors Funding 2015-3 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 19.80%, due 10/18/2027)(5)(6)(14) | 39,598 | 34,675 | 32,513 | 1.0% | ||||||
34,675 | 32,513 | 1.0% | ||||||||||
Harbortouch Payments, LLC | Pennsylvania / Commercial Services & Supplies | Escrow Receivable | — | 917 | —% | |||||||
— | 917 | —% | ||||||||||
HarbourView CLO VII-R, Ltd. (f/k/a HarbourView CLO VII, Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 18.94%, due 7/18/2031)(5)(6)(14) | 19,025 | 13,411 | 13,689 | 0.4% | ||||||
13,411 | 13,689 | 0.4% | ||||||||||
Help/Systems Holdings, Inc. | Minnesota / Software | Second Lien Term Loan (9.84% (LIBOR + 7.75%, due 3/27/2026)(8)(13) | 11,293 | 11,244 | 11,293 | 0.3% | ||||||
11,244 | 11,293 | 0.3% | ||||||||||
Ingenio, LLC | California / Internet Software & Services | Senior Secured Term Loan (9.82% (LIBOR + 7.50% with 1.25% LIBOR floor), due 9/26/2022)(3)(8)(11) | 9,647 | 9,647 | 9,647 | 0.3% | ||||||
9,647 | 9,647 | 0.3% | ||||||||||
Inpatient Care Management Company, LLC | Florida / Health Care Providers & Services | Senior Secured Term Loan (10.31% (LIBOR + 8.00% with 1.00% LIBOR floor), due 6/8/2021)(3)(11) | 23,698 | 23,698 | 23,698 | 0.7% | ||||||
23,698 | 23,698 | 0.7% | ||||||||||
Janus International Group, LLC | Georgia / Building Products | Second Lien Term Loan (9.84% (LIBOR + 7.75% with 1.00% LIBOR floor), due 2/12/2026)(8)(13) | 10,000 | 9,905 | 10,000 | 0.3% | ||||||
9,905 | 10,000 | 0.3% | ||||||||||
JD Power and Associates | California / Capital Markets | Second Lien Term Loan (10.59% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/7/2024)(3)(8)(13) | 20,000 | 19,799 | 20,000 | 0.6% | ||||||
19,799 | 20,000 | 0.6% | ||||||||||
Jefferson Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 7.20%, due 7/20/2027)(5)(6)(14) | 19,500 | 16,078 | 12,392 | 0.4% | ||||||
16,078 | 12,392 | 0.4% | ||||||||||
K&N Parent, Inc. | California / Auto Components | Second Lien Term Loan (11.08% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/21/2024)(3)(8)(11) | 12,887 | 12,681 | 12,887 | 0.4% | ||||||
12,681 | 12,887 | 0.4% | ||||||||||
Keystone Acquisition Corp.(36) | Pennsylvania / Health Care Providers & Services | Second Lien Term Loan (11.58% (LIBOR + 9.25% with 1.00% LIBOR floor), due 5/1/2025)(3)(8)(11) | 50,000 | 50,000 | 50,000 | 1.5% | ||||||
50,000 | 50,000 | 1.5% |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LCM XIV Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 16.28%, due 7/21/2031)(5)(14) | $ | 49,934 | $ | 26,516 | $ | 24,257 | 0.7% | |||
26,516 | 24,257 | 0.7% | ||||||||||
Madison Park Funding IX, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 57.45%, due 8/15/2022)(5)(14) | 43,110 | 2,058 | 2,200 | 0.1% | ||||||
2,058 | 2,200 | 0.1% | ||||||||||
Maverick Healthcare Equity, LLC | Arizona / Health Care Providers & Services | Preferred Units (1,250,000 units)(16) | 1,252 | 446 | —% | |||||||
Class A Common Units (1,250,000 units)(16) | — | — | —% | |||||||||
1,252 | 446 | —% | ||||||||||
MedMark Services, Inc.(51) | Texas / Health Care Providers & Services | Second Lien Term Loan (10.55% (LIBOR + 8.25% with 1.00% LIBOR floor), due 3/1/2025)(3)(8)(11) | 7,000 | 6,933 | 6,933 | 0.2% | ||||||
6,933 | 6,933 | 0.2% | ||||||||||
Memorial MRI & Diagnostic, LLC | Texas / Health Care Providers & Services | Senior Secured Term Loan (10.83% (LIBOR + 8.50% with 1.00% LIBOR floor), due 3/16/2022)(11) | 36,925 | 36,925 | 36,925 | 1.1% | ||||||
36,925 | 36,925 | 1.1% | ||||||||||
Mobile Posse, Inc. | Virginia / Media | First Lien Term Loan (10.83% (LIBOR + 8.50% with 2.00% LIBOR floor), due 4/3/2023)(3)(11) | 27,700 | 27,700 | 27,700 | 0.8% | ||||||
27,700 | 27,700 | 0.8% | ||||||||||
Mountain View CLO 2013-I Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.66%, due 10/15/2030)(5)(14) | 43,650 | 28,357 | 23,267 | 0.7% | ||||||
28,357 | 23,267 | 0.7% | ||||||||||
Mountain View CLO IX Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 17.63%, due 7/15/2031)(5)(6)(14) | 47,830 | 31,528 | 37,333 | 1.1% | ||||||
31,528 | 37,333 | 1.1% | ||||||||||
MRP Holdco, Inc. | Massachusetts / IT Services | Senior Secured Term Loan A (6.59% (LIBOR + 4.50% with 1.50% LIBOR floor), due 4/17/2024)(3)(13) | 43,000 | 43,000 | 43,000 | 1.3% | ||||||
Senior Secured Term Loan B (10.59% (LIBOR + 8.50% with 1.50% LIBOR floor), due 4/17/2024)(13) | 43,000 | 43,000 | 43,000 | 1.3% | ||||||||
86,000 | 86,000 | 2.6% | ||||||||||
Octagon Investment Partners XV, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 14.58%, due 7/19/2030)(5)(14) | 42,063 | 31,734 | 26,350 | 0.8% | ||||||
31,734 | 26,350 | 0.8% | ||||||||||
Octagon Investment Partners 18-R Ltd. (f/k/a Octagon Investment Partners XVIII, Ltd.) | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 17.26%, due 4/16/2031)(5)(6)(14) | 46,016 | 27,295 | 26,420 | 0.8% | ||||||
27,295 | 26,420 | 0.8% | ||||||||||
Pearl Intermediate Parent LLC | Connecticut / Health Care Providers & Services | Second Lien Term Loan (8.33% (LIBOR + 6.25%, due 2/15/2026)(8)(13) | 5,000 | 4,976 | 5,000 | 0.1% | ||||||
4,976 | 5,000 | 0.1% |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
PeopleConnect Intermediate, LLC (f/k/a Intelius, Inc.) | Washington / Internet Software & Services | Revolving Line of Credit – $1,000 Commitment (11.81% (LIBOR + 9.50% with 1.00% LIBOR floor), due 8/11/2020)(11)(15) | $ | 500 | $ | 500 | $ | 500 | —% | |||
Senior Secured Term Loan A (8.81% (LIBOR + 6.50% with 1.00% LIBOR floor), due 7/1/2020)(3)(11) | 18,828 | 18,828 | 18,828 | 0.6% | ||||||||
Senior Secured Term Loan B (14.81% (LIBOR + 12.50% with 1.00% LIBOR floor), due 7/1/2020)(3)(11) | 20,163 | 20,163 | 20,163 | 0.6% | ||||||||
39,491 | 39,491 | 1.2% | ||||||||||
PGX Holdings, Inc. | Utah / Diversified Consumer Services | Second Lien Term Loan (11.09% (LIBOR + 9.00% with 1.00% LIBOR floor), due 9/29/2021)(3)(13) | 118,289 | 118,289 | 118,289 | 3.5% | ||||||
118,289 | 118,289 | 3.5% | ||||||||||
PharMerica Corporation | Kentucky / Pharmaceuticals | Second Lien Term Loan (9.80% (LIBOR + 7.75% with 1.00% LIBOR floor), due 12/7/2025)(8)(13) | 12,000 | 11,882 | 12,000 | 0.4% | ||||||
11,882 | 12,000 | 0.4% | ||||||||||
Photonis Technologies SAS | France / Electronic Equipment, Instruments & Components | First Lien Term Loan (9.83% (LIBOR + 7.50% with 1.00% LIBOR floor), due 9/18/2019)(8)(11)(14) | 12,872 | 12,490 | 12,335 | 0.4% | ||||||
12,490 | 12,335 | 0.4% | ||||||||||
PlayPower, Inc. | North Carolina / Leisure Products | Second Lien Term Loan (11.08% (LIBOR + 8.75% with 1.00% LIBOR floor), due 6/23/2022)(3)(8)(11) | 11,000 | 10,904 | 11,000 | 0.3% | ||||||
10,904 | 11,000 | 0.3% | ||||||||||
Research Now Group, Inc. | Connecticut / Professional Services | First Lien Term Loan (7.86% (LIBOR + 5.50% with 1.00% LIBOR floor), due 12/20/2024)(8)(10) | 9,950 | 9,468 | 9,608 | 0.3% | ||||||
Second Lien Term Loan (11.82% (LIBOR + 9.50% with 1.00% LIBOR floor), due 12/20/2025)(8)(11) | 50,000 | 46,738 | 47,382 | 1.4% | ||||||||
56,206 | 56,990 | 1.7% | ||||||||||
RGIS Services, LLC | Michigan / Commercial Services & Supplies | Senior Secured Term Loan (9.59% (LIBOR + 7.50% with 1.00% LIBOR floor), due 3/31/2023)(3)(8)(13) | 15,173 | 15,113 | 14,339 | 0.4% | ||||||
15,113 | 14,339 | 0.4% | ||||||||||
RME Group Holding Company | Florida / Media | Senior Secured Term Loan A (8.33% (LIBOR + 6.00% with 1.00% LIBOR floor), due 5/4/2022)(3)(11) | 35,146 | 35,146 | 35,146 | 1.0% | ||||||
Senior Secured Term Loan B (13.33% (LIBOR + 11.00% with 1.00% LIBOR floor), due 5/4/2022)(3)(11) | 24,349 | 24,349 | 24,349 | 0.7% | ||||||||
59,495 | 59,495 | 1.7% | ||||||||||
Rocket Software, Inc. | Massachusetts / Software | Second Lien Term Loan (11.83% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/14/2024)(3)(8)(11) | 50,000 | 49,219 | 50,000 | 1.5% | ||||||
49,219 | 50,000 | 1.5% | ||||||||||
Romark WM-R Ltd. (f/k/a Washington Mill CLO Ltd.) | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.41%, due 4/20/2031)(5)(6)(14) | 27,724 | 21,494 | 17,961 | 0.5% | ||||||
21,494 | 17,961 | 0.5% |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Rosa Mexicano | New York / Hotels, Restaurants & Leisure | Revolving Line of Credit – $2,500 Commitment (9.83% (LIBOR + 7.50% with 1.50% LIBOR floor), due 3/29/2023(11)(15) | $ | — | $ | — | $ | — | —% | |||
Senior Secured Term Loan (9.83% (LIBOR + 7.50% with 1.50% LIBOR floor), due 3/29/2023(3)(11) | 29,813 | 29,813 | 29,813 | 0.9% | ||||||||
29,813 | 29,813 | 0.9% | ||||||||||
SCS Merger Sub, Inc. | Texas / IT Services | Second Lien Term Loan (11.59% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/30/2023)(3)(8)(13) | 20,000 | 19,605 | 20,000 | 0.6% | ||||||
19,605 | 20,000 | 0.6% | ||||||||||
Securus Technologies Holdings, Inc. | Texas / Communications Equipment | Second Lien Term Loan (10.34% (LIBOR + 8.25% with 1.00% LIBOR floor), due 11/01/2025)(8)(13) | 40,000 | 39,860 | 40,000 | 1.2% | ||||||
39,860 | 40,000 | 1.2% | ||||||||||
SEOTownCenter, Inc | Utah / Internet Software & Services | Senior Secured Term Loan A (9.84% (LIBOR + 7.50% with 2.00% LIBOR floor), due 4/07/2023)(3)(11) | 25,000 | 25,000 | 25,000 | 0.7% | ||||||
Senior Secured Term Loan B (14.84% (LIBOR + 12.50% with 2.00% LIBOR floor), due 4/07/2023)(3)(11) | 17,000 | 17,000 | 17,000 | 0.5% | ||||||||
42,000 | 42,000 | 1.2% | ||||||||||
SESAC Holdco II LLC | Tennessee / Media | Second Lien Term Loan (9.34% (LIBOR + 7.25% with 1.00% LIBOR floor), due 2/23/2025)(8)(13) | 3,000 | 2,975 | 2,975 | 0.1% | ||||||
2,975 | 2,975 | 0.1% | ||||||||||
Small Business Whole Loan Portfolio(41) | New York / Online Lending | 124 Small Business Loans purchased from On Deck Capital, Inc. | 30 | 30 | 17 | —% | ||||||
30 | 17 | —% | ||||||||||
SMG US Midco | Pennsylvania / Hotels, Restaurants & Leisure | Second Lien Term Loan (9.09% (LIBOR + 7.00%, due 1/23/2026)(8)(13) | 7,500 | 7,482 | 7,482 | 0.2% | ||||||
7,482 | 7,482 | 0.2% | ||||||||||
Spartan Energy Services, Inc. | Louisiana / Energy Equipment & Services | Senior Secured Term Loan A (7.98% (LIBOR + 6.00% with 1.00% LIBOR floor), due 12/28/2018)(13) | 13,156 | 12,528 | 13,046 | 0.4% | ||||||
Senior Secured Term Loan B (13.98% PIK (LIBOR + 12.00% with 1.00% LIBOR floor), due 12/28/2018)(13)(46) | 18,237 | 16,838 | 18,237 | 0.5% | ||||||||
29,366 | 31,283 | 0.9% | ||||||||||
Spectrum Holdings III Corp | Georgia / Health Care Equipment & Supplies | Second Lien Term Loan (9.09% (LIBOR + 7.00% with 1.00% LIBOR floor), due 1/31/2026)(8)(13) | 7,500 | 7,464 | 7,464 | 0.2% | ||||||
7,464 | 7,464 | 0.2% | ||||||||||
Strategic Materials | Texas / Household Durables | Second Lien Term Loan (10.10% (LIBOR + 7.75% with 1.00% LIBOR floor), due 11/1/2025)(8)(11) | 7,000 | 6,936 | 6,936 | 0.2% | ||||||
6,936 | 6,936 | 0.2% | ||||||||||
Stryker Energy, LLC | Louisiana / Energy Equipment & Services | Overriding Royalty Interests (43) | — | — | —% | |||||||
— | — | —% | ||||||||||
Sudbury Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 5.47%, due 1/17/2026)(5)(14) | 28,200 | 18,183 | 14,218 | 0.4% | ||||||
18,183 | 14,218 | 0.4% |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
Symphony CLO XIV Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 3.78%, due 7/14/2026)(5)(6)(14) | $ | 49,250 | $ | 34,297 | $ | 27,478 | 0.8% | |||
34,297 | 27,478 | 0.8% | ||||||||||
Symphony CLO XV, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 7.30%, due 10/17/2026)(5)(14) | 50,250 | 39,512 | 32,433 | 1.0% | ||||||
39,512 | 32,433 | 1.0% | ||||||||||
TGP HOLDINGS III LLC | Oregon / Household Durables | Second Lien Term Loan (10.83% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/25/2025)(8)(11) | 3,000 | 2,959 | 2,959 | 0.1% | ||||||
2,959 | 2,959 | 0.1% | ||||||||||
TouchTunes Interactive Networks, Inc. | New York / Internet Software & Services | Second Lien Term Loan (10.25% (LIBOR + 8.25% with 1.00% LIBOR floor), due 5/29/2022)(3)(8)(13) | 14,000 | 13,926 | 14,000 | 0.4% | ||||||
13,926 | 14,000 | 0.4% | ||||||||||
Town & Country Holdings, Inc. | New York / Distributors | First Lien Term Loan (11.33% (LIBOR + 9.00% with 1.25% LIBOR floor), due 1/26/2023)(3)(11) | 69,650 | 69,650 | 69,650 | 2.0% | ||||||
69,650 | 69,650 | 2.0% | ||||||||||
Transplace Holdings, Inc. | Texas / Transportation Infrastructure | Second Lien Term Loan (10.79% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/6/2025)(8)(13) | 28,104 | 27,494 | 28,104 | 0.8% | ||||||
27,494 | 28,104 | 0.8% | ||||||||||
Turning Point Brands, Inc.(42) | Kentucky / Tobacco | Second Lien Term Loan (9.04% (LIBOR + 7.00% with 0.00% LIBOR floor), due 3/7/2024)(3)(8)(13) | 14,500 | 14,392 | 14,392 | 0.4% | ||||||
14,392 | 14,392 | 0.4% | ||||||||||
United Sporting Companies, Inc.(18) | South Carolina / Distributors | Second Lien Term Loan (13.09% (LIBOR + 11.00% with 1.75% LIBOR floor) plus 2.00% PIK, in non-accrual status effective 4/1/2017, due 11/16/2019)(13)(46) | 149,126 | 127,091 | 58,806 | 1.7% | ||||||
Common Stock (24,967 shares)(16) | — | — | —% | |||||||||
127,091 | 58,806 | 1.7% | ||||||||||
Universal Fiber Systems, LLC | Virginia / Textiles, Apparel & Luxury Goods | Second Lien Term Loan (11.60% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/02/2022)(3)(8)(12) | 37,000 | 36,551 | 37,000 | 1.1% | ||||||
36,551 | 37,000 | 1.1% | ||||||||||
Universal Turbine Parts, LLC | Alabama / Trading Companies & Distributors | Senior Secured Term Loan A (8.06% (LIBOR + 5.75% with 1.00% LIBOR floor), due 7/22/2021)(3)(11) | 31,363 | 31,363 | 27,926 | 0.8% | ||||||
Senior Secured Term Loan B (14.06% (LIBOR + 11.75% with 1.00% LIBOR floor), due 7/22/2021)(11) | 32,500 | 32,500 | 28,273 | 0.8% | ||||||||
63,863 | 56,199 | 1.6% | ||||||||||
USG Intermediate, LLC | Texas / Leisure Products | Revolving Line of Credit – $2,500 Commitment (11.34% (LIBOR + 9.25% with 1.00% LIBOR floor), due 8/24/2018)(13)(15) | 2,500 | 2,500 | 2,500 | 0.1% | ||||||
Senior Secured Term Loan A (8.84% (LIBOR + 6.75% with 1.00% LIBOR floor), due 8/24/2022)(3)(13) | 11,385 | 11,385 | 11,385 | 0.3% | ||||||||
Senior Secured Term Loan B (13.84% (LIBOR + 11.75% with 1.00% LIBOR floor), due 8/24/2022)(3)(13) | 20,741 | 20,741 | 20,741 | 0.6% | ||||||||
Equity(16) | 1 | — | —% | |||||||||
34,627 | 34,626 | 1.0% |
June 30, 2018 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(44) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
UTZ Quality Foods, LLC | Pennsylvania / Food Products | Second Lien Term Loan (9.34% (LIBOR + 7.25%, due 11/21/2025)(8)(13) | $ | 10,000 | $ | 9,884 | $ | 9,886 | 0.3% | |||
9,884 | 9,886 | 0.3% | ||||||||||
VC GB Holdings, Inc. | Illinois / Household Durables | Subordinated Secured Term Loan (10.09% (LIBOR + 8.00% with 1.00% LIBOR floor), due 2/28/2025)(3)(8)(13) | 16,000 | 15,750 | 16,000 | 0.5% | ||||||
15,750 | 16,000 | 0.5% | ||||||||||
Venio LLC | Pennsylvania / Professional Services | Second Lien Term Loan (4.00% plus PIK 10.00% (LIBOR + 7.50% with 2.50% LIBOR floor), due 2/19/2020)(11)(46) | 22,048 | 18,066 | 20,001 | 0.6% | ||||||
18,066 | 20,001 | 0.6% | ||||||||||
Voya CLO 2012-2, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(5)(14)(17) | 38,070 | 450 | 595 | —% | ||||||
450 | 595 | —% | ||||||||||
Voya CLO 2012-3, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(5)(14)(17) | 46,632 | — | 585 | —% | ||||||
— | 585 | —% | ||||||||||
Voya CLO 2012-4, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 11.96%, due 10/16/2028)(5)(14) | 40,613 | 30,893 | 28,264 | 0.8% | ||||||
30,893 | 28,264 | 0.8% | ||||||||||
Voya CLO 2014-1, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 16.47%, due 4/18/2031)(5)(6)(14) | 40,773 | 28,205 | 26,931 | 0.8% | ||||||
28,205 | 26,931 | 0.8% | ||||||||||
Voya CLO 2016-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.68%, due 10/18/2027)(5)(6)(14) | 28,100 | 27,180 | 22,912 | 0.7% | ||||||
27,180 | 22,912 | 0.7% | ||||||||||
Voya CLO 2017-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.26%, due 7/20/2030)(5)(6)(14) | 44,885 | 47,400 | 43,351 | 1.3% | ||||||
47,400 | 43,351 | 1.3% | ||||||||||
Wink Holdco, Inc. | Texas / Insurance | Second Lien Term Loan (8.85% (LIBOR + 6.75% with 1.00% LIBOR floor), due 12/1/2025)(8)(13) | 3,000 | 2,986 | 2,986 | 0.1% | ||||||
2,986 | 2,986 | 0.1% | ||||||||||
Total Non-Control/Non-Affiliate Investments (Level 3) | $ | 3,475,295 | $ | 3,264,517 | 95.8% | |||||||
Total Portfolio Investments (Level 3) | $ | 5,831,458 | $ | 5,727,279 | 168.1% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(49) | ||||||||||||
Arctic Energy Services, LLC(37) | Wyoming / Energy Equipment & Services | Class D Units (32,915 units)(16) | $ | 31,640 | $ | 17,370 | 0.5% | |||||
Class E Units (21,080 units)(16) | 20,230 | — | —% | |||||||||
Class A Units (700 units)(16) | 9,006 | — | —% | |||||||||
Class C Units (10 units)(16) | — | — | —% | |||||||||
60,876 | 17,370 | 0.5% | ||||||||||
CCPI Inc.(19) | Ohio / Electronic Equipment, Instruments & Components | Senior Secured Term Loan A (10.00%, due 12/31/2020)(3) | $ | 2,966 | 2,966 | 2,966 | 0.1% | |||||
Senior Secured Term Loan B (12.00% plus 7.00% PIK, due 12/31/2020)(3)(46) | 18,216 | 18,216 | 18,216 | 0.5% | ||||||||
Common Stock (14,857 shares) | 6,759 | 21,870 | 0.7% | |||||||||
27,941 | 43,052 | 1.3% | ||||||||||
CP Energy Services Inc.(20) | Oklahoma / Energy Equipment & Services | Series B Convertible Preferred Stock (1,043 shares)(16) | 98,273 | 72,216 | 2.2% | |||||||
Common Stock (2,924 shares)(16) | 15,227 | — | —% | |||||||||
113,500 | 72,216 | 2.2% | ||||||||||
Credit Central Loan Company, LLC(21) | South Carolina / Consumer Finance | Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2019)(14)(46) | 51,855 | 45,255 | 51,855 | 1.5% | ||||||
Class A Units (10,640,642 units)(14)(16) | 13,731 | 9,881 | 0.3% | |||||||||
Net Revenues Interest (25% of Net Revenues)(14)(16) | — | 2,699 | 0.1% | |||||||||
58,986 | 64,435 | 1.9% | ||||||||||
Echelon Aviation LLC | New York / Aerospace & Defense | Senior Secured Term Loan (11.75% (LIBOR + 9.75% with 2.00% LIBOR floor) plus 2.25% PIK, due 3/31/2022)(13)(46) | 31,055 | 31,055 | 31,055 | 0.9% | ||||||
Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.00% PIK, due 12/7/2024)(13)(46) | 16,044 | 16,044 | 16,044 | 0.5% | ||||||||
Membership Interest (99%) | 22,738 | 24,219 | 0.7% | |||||||||
69,837 | 71,318 | 2.1% | ||||||||||
Edmentum Ultimate Holdings, LLC(22) | Minnesota / Diversified Consumer Services | Second Lien Revolving Credit Facility to Edmentum, Inc. – $7,834 Commitment (5.00%, due 6/9/2020)(15) | 7,834 | 7,834 | 7,834 | 0.2% | ||||||
Unsecured Senior PIK Note (8.50% PIK, due 6/9/2020)(46) | 6,905 | 6,905 | 6,905 | 0.2% | ||||||||
Unsecured Junior PIK Note (10.00% PIK, in non-accrual status effective 1/1/2017, due 6/9/2020) | 31,870 | 23,829 | 31,870 | 1.0% | ||||||||
Class A Units (370,964 units)(16) | 6,577 | 286 | —% | |||||||||
45,145 | 46,895 | 1.4% | ||||||||||
First Tower Finance Company LLC(23) | Mississippi / Consumer Finance | Subordinated Term Loan to First Tower, LLC (10.00% plus 7.00% PIK, due 6/24/2019)(14)(46) | 261,114 | 261,114 | 261,114 | 7.8% | ||||||
Class A Units (93,997,533 units)(14)(16) | 78,481 | 104,474 | 3.1% | |||||||||
339,595 | 365,588 | 10.9% | ||||||||||
Freedom Marine Solutions, LLC(24) | Louisiana / Energy Equipment & Services | Membership Interest (100%)(16) | 42,610 | 23,994 | 0.7% | |||||||
42,610 | 23,994 | 0.7% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(49) | ||||||||||||
MITY, Inc.(25) | Utah / Commercial Services & Supplies | Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 1/30/2020)(3)(11) | $ | 26,250 | $ | 26,250 | $ | 26,250 | 0.8% | |||
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 1/30/2020)(3)(11)(46) | 24,442 | 24,442 | 24,442 | 0.7% | ||||||||
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due on demand)(14) | 5,659 | 7,200 | 5,659 | 0.2% | ||||||||
Common Stock (42,053 shares) | 6,849 | 20,161 | 0.6% | |||||||||
64,741 | 76,512 | 2.3% | ||||||||||
National Property REIT Corp.(26) | Various / Equity Real Estate Investment Trusts (REITs) / Online Lending | Senior Secured Term Loan A (6.00% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 5.50% PIK, due 4/1/2019)(11)(46) | 291,315 | 291,315 | 291,315 | 8.7% | ||||||
Senior Secured Term Loan E (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 5.00% PIK, due 4/1/2019)(11)(46) | 122,314 | 122,314 | 122,314 | 3.6% | ||||||||
Senior Secured Term Loan C to ACL Loan Holdings, Inc. (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 5.00% PIK, due 4/1/2019)(11)(14)(46) | 59,722 | 59,722 | 59,722 | 1.8% | ||||||||
Senior Secured Term Loan C to American Consumer Lending Limited (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 5.00% PIK, due 12/15/2020)(11)(14)(46) | 87,130 | 87,130 | 87,130 | 2.6% | ||||||||
Common Stock (2,280,992 shares)(16) | 229,815 | 338,046 | 10.1% | |||||||||
Net Operating Income Interest (5% of Net Operating Income) | — | 88,777 | 2.6% | |||||||||
790,296 | 987,304 | 29.4% | ||||||||||
Nationwide Loan Company LLC(27) | Illinois / Consumer Finance | Senior Subordinated Term Loan to Nationwide Acceptance LLC (10.00% plus 10.00% PIK, due 6/18/2019)(14)(46) | 16,819 | 16,819 | 16,819 | 0.5% | ||||||
Class A Units (32,456,159 units)(14) | 18,183 | 20,126 | 0.6% | |||||||||
35,002 | 36,945 | 1.1% | ||||||||||
NMMB, Inc.(28) | New York / Media | Senior Secured Note (14.00%, due 5/6/2021) | 3,714 | 3,714 | 3,714 | 0.1% | ||||||
Senior Secured Note to Armed Forces Communications, Inc. (14.00%, due 5/6/2021) | 6,900 | 6,900 | 6,900 | 0.2% | ||||||||
Series A Preferred Stock (7,200 shares)(16) | 7,200 | 5,713 | 0.2% | |||||||||
Series B Preferred Stock (5,669 shares)(16) | 5,669 | 4,498 | 0.1% | |||||||||
23,483 | 20,825 | 0.6% | ||||||||||
R-V Industries, Inc. | Pennsylvania / Machinery | Senior Subordinated Note (10.30% (LIBOR + 9.00% with 1.00% LIBOR floor), due 3/31/2022)(3)(11) | 28,622 | 28,622 | 28,622 | 0.9% | ||||||
Common Stock (745,107 shares) | 6,866 | 4,056 | 0.1% | |||||||||
35,488 | 32,678 | 1.0% | ||||||||||
SB Forging Company II, Inc. (f/k/a Gulf Coast Machine & Supply Company)(29) | Texas / Energy Equipment & Services | Series A Convertible Preferred Stock (99,000 shares)(16) | — | 1,940 | 0.1% | |||||||
Common Stock (100 shares)(16) | — | — | —% | |||||||||
— | 1,940 | 0.1% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Control Investments (greater than 25.00% voting control)(49) | ||||||||||||
USES Corp.(30) | Texas / Commercial Services & Supplies | Senior Secured Term Loan A (9.00% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | $ | 31,068 | $ | 28,604 | $ | 12,517 | 0.4% | |||
Senior Secured Term Loan B (15.50% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020) | 41,475 | 35,568 | — | —% | ||||||||
Common Stock (268,962 shares)(16) | — | — | —% | |||||||||
64,172 | 12,517 | 0.4% | ||||||||||
Valley Electric Company, Inc.(31) | Washington / Construction & Engineering | Senior Secured Note to Valley Electric Co. of Mt. Vernon, Inc. (8.00% (LIBOR + 5.00% with 3.00% LIBOR floor) plus 2.50% PIK, due 12/31/2024)(3)(11)(46) | 10,430 | 10,430 | 10,430 | 0.3% | ||||||
Senior Secured Note (10.00% plus 8.50% PIK, due 6/23/2024)(46) | 25,624 | 25,624 | 22,079 | 0.7% | ||||||||
Common Stock (50,000 shares)(16) | 26,204 | — | —% | |||||||||
62,258 | 32,509 | 1.0% | ||||||||||
Wolf Energy, LLC(32) | Kansas / Energy Equipment & Services | Membership Interest (100%)(16) | — | — | —% | |||||||
Membership Interest in Wolf Energy Services Company, LLC (100%)(16) | 6,801 | 5,662 | 0.1% | |||||||||
Net Profits Interest (8% of Equity Distributions)(4)(16) | — | 15 | —% | |||||||||
6,801 | 5,677 | 0.1% | ||||||||||
Total Control Investments (Level 3) | $ | 1,840,731 | $ | 1,911,775 | 57.0% |
Affiliate Investments (5.00% to 24.99% voting control)(50) | ||||||||||||
Nixon, Inc.(39) | California / Textiles, Apparel & Luxury Goods | Senior Secured Term Loan (11.50% PIK, in non-accrual status effective 7/1/2016, due 11/12/2022)(8) | $ | 16,499 | $ | 14,197 | $ | — | —% | |||
Common Stock (857 units)(16) | — | — | — | —% | ||||||||
14,197 | — | —% | ||||||||||
Targus International, LLC(33) | California / Textiles, Apparel & Luxury Goods | Senior Secured Term Loan A (15.00% PIK, due 12/31/2019)(8)(46) | 1,532 | 1,320 | 1,532 | —% | ||||||
Senior Secured Term Loan B (15.00% PIK, due 12/31/2019)(8)(46) | 4,596 | 3,961 | 4,596 | 0.1% | ||||||||
Common Stock (1,262,737 shares)(16) | 3,479 | 5,301 | 0.1% | |||||||||
8,760 | 11,429 | 0.3% | ||||||||||
Total Affiliate Investments (Level 3) | $ | 22,957 | $ | 11,429 | 0.3% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
American Gilsonite Company(34) | Utah / Chemicals | Membership Interest (1.93%)(16) | $ | — | $ | — | —% | |||||
— | — | —% | ||||||||||
Apidos CLO IX | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 7/15/2023)(5)(14)(17) | $ | 23,525 | 7,597 | 7,597 | 0.2% | |||||
7,597 | 7,597 | 0.2% | ||||||||||
Apidos CLO XI | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 9.54%, due 10/17/2028)(5)(14) | 40,500 | 30,494 | 24,777 | 0.7% | ||||||
30,494 | 24,777 | 0.7% | ||||||||||
Apidos CLO XII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 5.73%, due 4/15/2025)(5)(14) | 44,063 | 30,745 | 26,047 | 0.8% | ||||||
30,745 | 26,047 | 0.8% | ||||||||||
Apidos CLO XV | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.29%, due 10/20/2025)(5)(14) | 36,515 | 29,491 | 26,083 | 0.8% | ||||||
29,491 | 26,083 | 0.8% | ||||||||||
Apidos CLO XXII | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.51%, due 10/20/2027)(5)(6)(14) | 31,350 | 26,991 | 25,432 | 0.8% | ||||||
26,991 | 25,432 | 0.8% | ||||||||||
Ark-La-Tex Wireline Services, LLC(32) | Louisiana / Energy Equipment & Services | Senior Secured Term Loan B (12.73% (LIBOR + 11.50% with 1.00% LIBOR floor), in non-accrual status effective 4/1/2016, due 4/8/2019)(13) | 26,080 | 1,630 | 1,630 | —% | ||||||
1,630 | 1,630 | —% | ||||||||||
Armor Holding II LLC | New York / Commercial Services & Supplies | Second Lien Term Loan (10.30% (LIBOR + 9.00% with 1.25% LIBOR floor), due 12/26/2020)(3)(8)(11) | 7,000 | 6,928 | 7,000 | 0.2% | ||||||
6,928 | 7,000 | 0.2% | ||||||||||
Atlantis Health Care Group (Puerto Rico), Inc. | Puerto Rico / Health Care Providers & Services | Revolving Line of Credit – $7,000 Commitment (9.50% (LIBOR + 8.00% with 1.50% LIBOR floor), due 8/21/2018)(11)(15) | 3,850 | 3,850 | 3,850 | 0.1% | ||||||
Senior Term Loan (9.50% (LIBOR + 8.00% with 1.50% LIBOR floor), due 2/21/2020)(3)(11) | 79,560 | 79,560 | 79,560 | 2.4% | ||||||||
83,410 | 83,410 | 2.5% | ||||||||||
Babson CLO Ltd. 2014-III | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.01%, due 1/15/2026)(5)(6)(14) | 52,250 | 42,101 | 39,001 | 1.2% | ||||||
42,101 | 39,001 | 1.2% | ||||||||||
Broder Bros., Co. | Pennsylvania / Textiles, Apparel & Luxury Goods | Senior Secured Term Loan A (7.05% (LIBOR + 5.75% with 1.25% LIBOR floor), due 6/03/2021)(3)(11) | 110,876 | 110,876 | 110,876 | 3.3% | ||||||
Senior Secured Term Loan B (13.55% (LIBOR + 12.25% with 1.25% LIBOR floor), due 6/03/2021)(11) | 114,901 | 114,901 | 114,901 | 3.4% | ||||||||
225,777 | 225,777 | 6.7% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Brookside Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 1.29%, due 4/17/2025)(5)(14) | $ | 26,000 | $ | 17,178 | $ | 14,022 | 0.4% | |||
17,178 | 14,022 | 0.4% | ||||||||||
California Street CLO IX Ltd. (f/k/a Symphony CLO IX Ltd.) | Cayman Islands / Structured Finance | Preference Shares (Residual Interest, current yield 13.82%, due 10/16/2028)(5)(14) | 58,915 | 40,792 | 35,758 | 1.1% | ||||||
40,792 | 35,758 | 1.1% | ||||||||||
Capstone Logistics Acquisition, Inc. | Georgia / Commercial Services & Supplies | Second Lien Term Loan (9.48% (LIBOR + 8.25% with 1.00% LIBOR floor), due 10/7/2022)(3)(8)(13) | 101,517 | 101,071 | 98,468 | 2.9% | ||||||
101,071 | 98,468 | 2.9% | ||||||||||
Carlyle Global Market Strategies CLO 2014-4, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 21.61%, due 10/15/2026)(5)(6)(14) | 25,534 | 19,494 | 19,757 | 0.6% | ||||||
19,494 | 19,757 | 0.6% | ||||||||||
Carlyle Global Market Strategies CLO 2016-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.04%, due 10/20/2029)(5)(6)(14) | 32,200 | 31,449 | 26,745 | 0.8% | ||||||
31,449 | 26,745 | 0.8% | ||||||||||
Cent CLO 17 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 10.00%, due 1/30/2025)(5)(14) | 24,870 | 18,100 | 16,708 | 0.5% | ||||||
18,100 | 16,708 | 0.5% | ||||||||||
Cent CLO 20 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.81%, due 1/25/2026)(5)(14) | 40,275 | 32,105 | 32,148 | 1.0% | ||||||
32,105 | 32,148 | 1.0% | ||||||||||
Cent CLO 21 Limited | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.47%, due 7/27/2026)(5)(6)(14) | 48,528 | 36,659 | 36,178 | 1.1% | ||||||
36,659 | 36,178 | 1.1% | ||||||||||
Centerfield Media Holding Company(35) | California / Internet Software and Services | Senior Secured Term Loan A (8.30% (LIBOR + 7.00% with 1.00% LIBOR floor), due 1/17/2022)(3)(8)(11) | 67,320 | 67,320 | 67,320 | 2.0% | ||||||
Senior Secured Term Loan B (13.80% (LIBOR + 12.50% with 1.00% LIBOR floor), due 1/17/2022)(8)(11) | 68,000 | 68,000 | 68,000 | 2.0% | ||||||||
135,320 | 135,320 | 4.0% | ||||||||||
CIFC Funding 2013-III, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.42%, due 10/24/2025)(5)(14) | 44,100 | 31,233 | 30,265 | 0.9% | ||||||
31,233 | 30,265 | 0.9% | ||||||||||
CIFC Funding 2013-IV, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 16.16%, due 11/27/2024)(5)(14) | 45,500 | 32,859 | 32,708 | 1.0% | ||||||
32,859 | 32,708 | 1.0% | ||||||||||
CIFC Funding 2014-IV Investor, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 13.85%, due 10/17/2026)(5)(6)(14) | 41,500 | 30,002 | 29,139 | 0.9% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
30,002 | 29,139 | 0.9% | ||||||||||
CIFC Funding 2016-I, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 16.33%, due 10/21/2028)(5)(6)(14) | $ | 34,000 | $ | 31,780 | $ | 29,513 | 0.9% | |||
31,780 | 29,513 | 0.9% | ||||||||||
Cinedigm DC Holdings, LLC | New York / Media | Senior Secured Term Loan (11.00% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021)(11)(46) | 49,156 | 49,106 | 49,156 | 1.5% | ||||||
49,106 | 49,156 | 1.5% | ||||||||||
Coverall North America, Inc. | Florida / Commercial Services & Supplies | Senior Secured Term Loan A (7.30% (LIBOR + 6.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11) | 22,658 | 22,658 | 22,658 | 0.7% | ||||||
Senior Secured Term Loan B (12.30% (LIBOR + 11.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11) | 24,938 | 24,938 | 24,938 | 0.7% | ||||||||
47,596 | 47,596 | 1.4% | ||||||||||
CURO Financial Technologies Corp. | Canada / Consumer Finance | Senior Secured Notes (12.00%, due 3/1/2022)(8)(14) | 10,000 | 9,831 | 10,000 | 0.3% | ||||||
9,831 | 10,000 | 0.3% | ||||||||||
Digital Room LLC | California / Commercial Services & Supplies | Second Lien Term Loan (11.23% (LIBOR + 10.00% with 1.00% LIBOR floor), due 5/21/2023)(3)(8)(13) | 34,000 | 33,389 | 33,389 | 1.0% | ||||||
33,389 | 33,389 | 1.0% | ||||||||||
Dunn Paper, Inc. | Georgia / Paper & Forest Products | Second Lien Term Loan (9.98% (LIBOR + 8.75% with 1.00% LIBOR floor), due 8/26/2023)(3)(8)(13) | 11,500 | 11,295 | 11,500 | 0.3% | ||||||
11,295 | 11,500 | 0.3% | ||||||||||
Easy Gardener Products, Inc. | Texas / Household Durables | Senior Secured Term Loan (11.30% (LIBOR + 10.00% with .25% LIBOR floor), due 9/30/2020)(3)(11) | 17,194 | 17,194 | 17,066 | 0.5% | ||||||
17,194 | 17,066 | 0.5% | ||||||||||
EZShield Parent, Inc. | Maryland / Internet Software & Services | Senior Secured Term Loan A (7.98% (LIBOR + 6.75% with 1.00% LIBOR floor), due 2/26/2021)(3)(13) | 14,963 | 14,963 | 14,963 | 0.4% | ||||||
Senior Secured Term Loan B (12.98% (LIBOR + 11.75% with 1.00% LIBOR floor), due 2/26/2021)(3)(13) | 15,000 | 15,000 | 15,000 | 0.5% | ||||||||
29,963 | 29,963 | 0.9% | ||||||||||
Fleetwash, Inc. | New Jersey / Commercial Services & Supplies | Senior Secured Term Loan B (10.30% (LIBOR + 9.00% with 1.00% LIBOR floor), due 4/30/2022)(3)(11) | 21,544 | 21,544 | 21,544 | 0.6% | ||||||
Delayed Draw Term Loan – $15,000 Commitment (9.80% (LIBOR + 8.50% with 1.00% LIBOR floor)expires 4/30/2022)(11)(15) | — | — | — | —% | ||||||||
21,544 | 21,544 | 0.6% | ||||||||||
Galaxy XV CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.14%, due 4/15/2025)(5)(14) | 50,525 | 33,887 | 33,794 | 1.0% | ||||||
33,887 | 33,794 | 1.0% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Galaxy XVI CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 11.71%, due 11/16/2025)(5)(14) | $ | 24,575 | $ | 17,854 | $ | 16,611 | 0.5% | |||
17,854 | 16,611 | 0.5% | ||||||||||
Galaxy XVII CLO, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 10.14%, due 7/15/2026)(5)(6)(14) | 39,905 | 29,502 | 26,833 | 0.8% | ||||||
29,502 | 26,833 | 0.8% | ||||||||||
Global Employment Solutions, Inc. | Colorado / Professional Services | Senior Secured Term Loan (10.48% (LIBOR + 9.25% with 1.00% LIBOR floor), due 6/26/2020)(3)(13) | 48,131 | 48,131 | 48,131 | 1.4% | ||||||
48,131 | 48,131 | 1.4% | ||||||||||
Halcyon Loan Advisors Funding 2012-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 0.00%, due 8/15/2023)(5)(14)(17) | 23,188 | 5,086 | 5,086 | 0.2% | ||||||
5,086 | 5,086 | 0.2% | ||||||||||
Halcyon Loan Advisors Funding 2013-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 5.76%, due 4/15/2025)(5)(14) | 40,400 | 26,949 | 23,937 | 0.7% | ||||||
26,949 | 23,937 | 0.7% | ||||||||||
Halcyon Loan Advisors Funding 2014-1 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 9.70%, due 4/18/2026)(5)(14) | 24,500 | 15,982 | 15,984 | 0.5% | ||||||
15,982 | 15,984 | 0.5% | ||||||||||
Halcyon Loan Advisors Funding 2014-2 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.39%, due 4/28/2025)(5)(6)(14) | 41,164 | 27,617 | 27,869 | 0.8% | ||||||
27,617 | 27,869 | 0.8% | ||||||||||
Halcyon Loan Advisors Funding 2015-3 Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.09%, due 10/18/2027)(5)(6)(14) | 39,598 | 34,205 | 34,938 | 1.0% | ||||||
34,205 | 34,938 | 1.0% | ||||||||||
Harbortouch Payments, LLC | Pennsylvania / Commercial Services & Supplies | Escrow Receivable | — | 864 | —% | |||||||
— | 864 | —% | ||||||||||
HarbourView CLO VII, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 19.25%, due 11/18/2026)(5)(6)(14) | 19,025 | 14,955 | 14,047 | 0.4% | ||||||
14,955 | 14,047 | 0.4% | ||||||||||
Harley Marine Services, Inc. | Washington / Marine | Second Lien Term Loan (10.50% (LIBOR + 9.25% with 1.25% LIBOR floor), due 12/20/2019)(3)(8)(11) | 9,000 | 8,919 | 8,800 | 0.3% | ||||||
8,919 | 8,800 | 0.3% | ||||||||||
Inpatient Care Management Company, LLC | Florida / Health Care Providers & Services | Senior Secured Term Loan (10.30% (LIBOR + 9.00% with 1.00% LIBOR floor), due 6/8/2021(3)(11) | 25,467 | 25,467 | 25,467 | 0.8% | ||||||
25,467 | 25,467 | 0.8% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Instant Web, LLC | Minnesota / Media | Senior Secured Term Loan A (5.80% (LIBOR + 4.50% with 1.00% LIBOR floor), due 3/28/2019)(11) | $ | 120,948 | $ | 120,948 | $ | 120,948 | 3.6% | |||
Senior Secured Term Loan B (12.30% (LIBOR + 11.00% with 1.00% LIBOR floor), due 3/28/2019)(3)(11) | 158,100 | 158,100 | 158,100 | 4.7% | ||||||||
Senior Secured Term Loan C-1 (13.05% (LIBOR + 11.75% with 1.00% LIBOR floor), due 3/28/2019)(11) | 27,000 | 27,000 | 27,000 | 0.8% | ||||||||
Senior Secured Term Loan C-2 (13.80% (LIBOR + 12.50% with 1.00% LIBOR floor), due 3/28/2019)(11) | 25,000 | 25,000 | 25,000 | 0.8% | ||||||||
331,048 | 331,048 | 9.9% | ||||||||||
InterDent, Inc. | California / Health Care Providers & Services | Senior Secured Term Loan A (6.73% (LIBOR + 5.50% with 0.75% LIBOR floor), due 8/3/2017)(13) | 78,656 | 78,656 | 78,656 | 2.3% | ||||||
Senior Secured Term Loan B (11.73% (LIBOR + 10.50% with 0.75% LIBOR floor), due 8/3/2017)(3)(13) | 131,125 | 131,125 | 129,857 | 3.9% | ||||||||
209,781 | 208,513 | 6.2% | ||||||||||
JD Power and Associates | California / Capital Markets | Second Lien Term Loan (9.80% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/7/2024)(3)(8)(11) | 15,000 | 14,796 | 15,000 | 0.4% | ||||||
14,796 | 15,000 | 0.4% | ||||||||||
Jefferson Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 10.45%, due 7/20/2027)(5)(6)(14) | 19,500 | 16,501 | 13,507 | 0.4% | ||||||
16,501 | 13,507 | 0.4% | ||||||||||
K&N Parent, Inc. | California / Auto Components | Second Lien Term Loan (9.98% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/20/2024)(3)(8)(13) | 13,000 | 12,762 | 13,000 | 0.4% | ||||||
12,762 | 13,000 | 0.4% | ||||||||||
Keystone Acquisition Corp.(36) | Pennsylvania / Health Care Providers & Services | Second Lien Term Loan (10.55% (LIBOR + 9.25% with 1.00% LIBOR floor), due 5/1/2025)(3)(8)(11) | 50,000 | 50,000 | 50,000 | 1.5% | ||||||
50,000 | 50,000 | 1.5% | ||||||||||
LaserShip, Inc. | Virginia / Air Freight & Logistics | Senior Secured Term Loan A (10.25% (LIBOR + 8.25% with 2.00% LIBOR floor), due 3/18/2019)(3)(13) | 32,184 | 32,184 | 32,184 | 1.0% | ||||||
Senior Secured Term Loan B (10.25% (LIBOR + 8.25% with 2.00% LIBOR floor), due 3/18/2019)(3)(13) | 19,768 | 19,768 | 19,768 | 0.5% | ||||||||
51,952 | 51,952 | 1.5% | ||||||||||
LCM XIV Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 14.99%, due 7/15/2025)(5)(14) | 30,500 | 21,243 | 21,567 | 0.6% | ||||||
21,243 | 21,567 | 0.6% | ||||||||||
Madison Park Funding IX, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 11.49%, due 8/15/2022)(5)(14) | 43,110 | 8,558 | 8,472 | 0.3% | ||||||
8,558 | 8,472 | 0.3% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Matrixx Initiatives, Inc. | New Jersey / Pharmaceuticals | Senior Secured Term Loan A (7.80% (LIBOR + 6.50% with 1.00% LIBOR floor), due 2/24/2020)(3)(11) | $ | 65,427 | $ | 65,427 | $ | 65,427 | 2.0% | |||
Senior Secured Term Loan B (12.80% (LIBOR + 11.50% with 1.00% LIBOR floor), due 2/24/2020)(3)(11) | 52,562 | 52,562 | 52,562 | 1.6% | ||||||||
117,989 | 117,989 | 3.6% | ||||||||||
Maverick Healthcare Equity, LLC | Arizona / Health Care Providers & Services | Preferred Units (1,250,000 units)(16) | 1,252 | 782 | —% | |||||||
Class A Common Units (1,250,000 units)(16) | — | — | —% | |||||||||
1,252 | 782 | —% | ||||||||||
Memorial MRI & Diagnostic, LLC | Texas / Health Care Providers & Services | Senior Secured Term Loan (9.80% (LIBOR + 8.50% with 1.00% LIBOR floor), due 3/16/2022)(11) | 37,810 | 37,810 | 37,810 | 1.1% | ||||||
37,810 | 37,810 | 1.1% | ||||||||||
Mountain View CLO 2013-I Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 9.43%, due 4/12/2024)(5)(14) | 43,650 | 28,554 | 26,314 | 0.8% | ||||||
28,554 | 26,314 | 0.8% | ||||||||||
Mountain View CLO IX Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.70%, due 7/15/2027)(5)(6)(14) | 47,830 | 40,832 | 39,857 | 1.2% | ||||||
40,832 | 39,857 | 1.2% | ||||||||||
National Home Healthcare Corp. | Michigan / Health Care Providers & Services | Second Lien Term Loan (10.08% (LIBOR + 9.00% with 1.00% LIBOR floor), due 12/8/2022)(3)(8)(13) | 15,407 | 15,199 | 15,407 | 0.5% | ||||||
15,199 | 15,407 | 0.5% | ||||||||||
NCP Finance Limited Partnership(38) | Ohio / Consumer Finance | Subordinated Secured Term Loan (11.00% (LIBOR + 9.75% with 1.25% LIBOR floor), due 9/30/2018)(3)(8)(13)(14) | 26,880 | 26,455 | 25,973 | 0.8% | ||||||
26,455 | 25,973 | 0.8% | ||||||||||
Octagon Investment Partners XV, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 13.13%, due 1/19/2025)(5)(14) | 42,064 | 29,704 | 24,250 | 0.7% | ||||||
29,704 | 24,250 | 0.7% | ||||||||||
Octagon Investment Partners XVIII, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 15.36%, due 12/16/2024)(5)(6)(14) | 28,200 | 18,468 | 17,415 | 0.5% | ||||||
18,468 | 17,415 | 0.5% | ||||||||||
Pacific World Corporation | California / Personal Products | Revolving Line of Credit – $15,000 Commitment (8.23% (LIBOR + 7.00% with 1.00% LIBOR floor), due 9/26/2020)(13)(15) | 14,725 | 14,725 | 14,725 | 0.4% | ||||||
Senior Secured Term Loan A (6.23% (LIBOR + 5.00% with 1.00% LIBOR floor), due 9/26/2020)(3)(13) | 97,250 | 97,250 | 94,834 | 2.8% | ||||||||
Senior Secured Term Loan B (10.23% (LIBOR + 9.00% with 1.00% LIBOR floor), due 9/26/2020)(3)(13) | 97,250 | 97,250 | 69,450 | 2.1% | ||||||||
209,225 | 179,009 | 5.3% | ||||||||||
Pelican Products, Inc. | California / Chemicals | Second Lien Term Loan (9.55% (LIBOR + 8.25% with 1.00% LIBOR floor), due 4/9/2021)(3)(8)(11) | 17,500 | 17,489 | 16,699 | 0.5% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
17,489 | 16,699 | 0.5% | ||||||||||
PeopleConnect Intermediate, LLC (f/k/a Intelius, Inc.) | Washington / Internet Software & Services | Revolving Line of Credit – $1,000 Commitment (9.80% (LIBOR + 8.50% with 1.00% LIBOR floor), due 8/11/2017)(11)(15) | $ | — | $ | — | $ | — | —% | |||
Senior Secured Term Loan A (6.80% (LIBOR + 5.50% with 1.00% LIBOR floor), due 7/1/2020)(3)(11) | 19,606 | 19,606 | 19,606 | 0.6% | ||||||||
Senior Secured Term Loan B (12.80% (LIBOR + 11.50% with 1.00% LIBOR floor), due 7/1/2020)(3)(11) | 20,552 | 20,552 | 20,552 | 0.6% | ||||||||
40,158 | 40,158 | 1.2% | ||||||||||
PGX Holdings, Inc. | Utah / Diversified Consumer Services | Second Lien Term Loan (10.23% (LIBOR + 9.00% with 1.00% LIBOR floor), due 9/29/2021)(3)(13) | 143,767 | 143,767 | 143,767 | 4.3% | ||||||
143,767 | 143,767 | 4.3% | ||||||||||
Photonis Technologies SAS | France / Electronic Equipment, Instruments & Components | First Lien Term Loan (8.80% (LIBOR + 7.50% with 1.00% LIBOR floor), due 9/18/2019)(8)(11)(14) | 9,872 | 9,755 | 8,794 | 0.3% | ||||||
9,755 | 8,794 | 0.3% | ||||||||||
Pinnacle (US) Acquisition Co. Limited | Texas / Software | Second Lien Term Loan (10.55% (LIBOR + 9.25% with 1.25% LIBOR floor), due 8/3/2020)(8)(11) | 7,037 | 6,947 | 5,150 | 0.2% | ||||||
6,947 | 5,150 | 0.2% | ||||||||||
PlayPower, Inc. | North Carolina / Leisure Products | Second Lien Term Loan (10.05% (LIBOR + 8.75% with 1.00% LIBOR floor), due 6/23/2022)(3)(8)(11) | 11,000 | 10,880 | 11,000 | 0.3% | ||||||
10,880 | 11,000 | 0.3% | ||||||||||
PrimeSport, Inc. | Georgia / Hotels, Restaurants & Leisure | Senior Secured Term Loan A (8.30% (LIBOR + 7.00% with 1.00% LIBOR floor), due 2/11/2021)(3)(11) | 53,138 | 53,138 | 49,312 | 1.5% | ||||||
Senior Secured Term Loan B (13.30% (LIBOR + 12.00% with 1.00% LIBOR floor), due 2/11/2021)(3)(11) | 74,500 | 74,500 | 54,585 | 1.6% | ||||||||
127,638 | 103,897 | 3.1% | ||||||||||
Prince Mineral Holding Corp. | New York / Metals & Mining | Senior Secured Term Loan (11.50%, due 12/15/2019)(8) | 10,000 | 9,953 | 10,000 | 0.3% | ||||||
9,953 | 10,000 | 0.3% | ||||||||||
RGIS Services, LLC | Michigan / Commercial Services & Supplies | Senior Secured Term Loan (8.80% (LIBOR + 7.50% with 1.00% LIBOR floor), due 3/31/2023)(8)(11) | 14,963 | 14,744 | 14,744 | 0.4% | ||||||
14,744 | 14,744 | 0.4% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
RME Group Holding Company | Florida / Media | Revolving Line of Credit – $2,000 Commitment (9.30% (LIBOR + 8.00% with 1.00% LIBOR floor), due 8/4/2017)(11)(15) | — | — | — | —% | ||||||
Senior Secured Term Loan A (7.30% (LIBOR + 6.00% with 1.00% LIBOR floor), due 5/4/2022)(3)(11) | 37,500 | 37,500 | 37,500 | 1.1% | ||||||||
Senior Secured Term Loan B (12.30% (LIBOR + 11.00% with 1.00% LIBOR floor), due 5/4/2022)(3)(11) | 25,000 | 25,000 | 25,000 | 0.8% | ||||||||
62,500 | 62,500 | 1.9% | ||||||||||
Rocket Software, Inc. | Massachusetts / Software | Second Lien Term Loan (10.80% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/14/2024)(3)(8)(11) | $ | 50,000 | $ | 49,094 | $ | 50,000 | 1.5% | |||
49,094 | 50,000 | 1.5% | ||||||||||
SCS Merger Sub, Inc. | Texas / IT Services | Second Lien Term Loan (10.73% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/30/2023)(3)(8)(13) | 20,000 | 19,531 | 20,000 | 0.6% | ||||||
19,531 | 20,000 | 0.6% | ||||||||||
SESAC Holdco II LLC | Tennessee / Media | Second Lien Term Loan (8.37% (LIBOR + 7.25% with 1.00% LIBOR floor), due 2/23/2025)(8)(12) | 3,000 | 2,971 | 2,971 | 0.1% | ||||||
2,971 | 2,971 | 0.1% | ||||||||||
Small Business Whole Loan Portfolio(41) | New York / Online Lending | 781 Small Business Loans purchased from On Deck Capital, Inc. | 8,434 | 8,434 | 7,964 | 0.2% | ||||||
8,434 | 7,964 | 0.2% | ||||||||||
Spartan Energy Services, Inc. | Louisiana / Energy Equipment & Services | Senior Secured Term Loan A (7.23% (LIBOR + 6.00% with 1.00% LIBOR floor), in non-accrual status effective 4/1/2016, due 12/28/2018)(13) | 13,156 | 11,933 | 8,833 | 0.3% | ||||||
Senior Secured Term Loan B (13.23% (LIBOR + 12.00% with 1.00% LIBOR floor), in non-accrual status effective 4/1/2016, due 12/28/2018)(13) | 16,101 | 13,669 | — | —% | ||||||||
25,602 | 8,833 | 0.3% | ||||||||||
Stryker Energy, LLC | Ohio / Oil, Gas & Consumable Fuels | Overriding Royalty Interests(43) | — | — | —% | |||||||
— | — | —% | ||||||||||
Sudbury Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 10.70%, due 1/17/2026)(5)(14) | 28,200 | 19,519 | 17,304 | 0.5% | ||||||
19,519 | 17,304 | 0.5% | ||||||||||
Symphony CLO XIV Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 10.41%, due 7/14/2026)(5)(6)(14) | 49,250 | 36,668 | 33,744 | 1.0% | ||||||
36,668 | 33,744 | 1.0% | ||||||||||
Symphony CLO XV, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 13.68%, due 10/17/2026)(5)(14) | 50,250 | 41,383 | 38,123 | 1.1% | ||||||
41,383 | 38,123 | 1.1% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
TouchTunes Interactive Networks, Inc. | New York / Internet Software & Services | Second Lien Term Loan (9.47% (LIBOR + 8.25% with 1.00% LIBOR floor), due 5/29/2022)(3)(8)(11) | 14,000 | 13,907 | 13,907 | 0.4% | ||||||
13,907 | 13,907 | 0.4% | ||||||||||
Traeger Pellet Grills LLC | Oregon / Household Durables | Senior Secured Term Loan A (6.50% (LIBOR + 4.50% with 2.00% LIBOR floor), due 6/18/2019)(3)(11) | 53,094 | 53,094 | 53,094 | 1.6% | ||||||
Senior Secured Term Loan B (11.50% (LIBOR + 9.50% with 2.00% LIBOR floor), due 6/18/2019)(3)(11) | 56,031 | 56,031 | 56,031 | 1.6% | ||||||||
109,125 | 109,125 | 3.2% | ||||||||||
Transaction Network Services, Inc. | Virginia / Diversified Telecommunication Services | Second Lien Term Loan (9.23% (LIBOR + 8.00% with 1.00% LIBOR floor), due 8/14/2020)(3)(8)(13) | $ | 4,410 | $ | 4,395 | $ | 4,410 | 0.1% | |||
4,395 | 4,410 | 0.1% | ||||||||||
Turning Point Brands, Inc.(42) | Kentucky / Tobacco | Second Lien Term Loan (11.00%, due 8/17/2022)(3)(8) | 14,500 | 14,365 | 14,431 | 0.4% | ||||||
14,365 | 14,431 | 0.4% | ||||||||||
United Sporting Companies, Inc.(18) | South Carolina / Distributors | Second Lien Term Loan (12.75% (LIBOR + 11.00% with 1.75% LIBOR floor) plus 2.00% PIK, in non-accrual status effective 4/1/2017, due 11/16/2019)(3)(13) | 141,559 | 140,847 | 83,225 | 2.5% | ||||||
Common Stock (24,967 shares)(16) | — | — | —% | |||||||||
140,847 | 83,225 | 2.5% | ||||||||||
Universal Fiber Systems, LLC | Virginia / Textiles, Apparel & Luxury Goods | Second Lien Term Loan (10.76% (LIBOR + 9.50% with 1.00% LIBOR floor), due 10/02/2022)(3)(8)(12) | 37,000 | 36,446 | 37,000 | 1.1% | ||||||
36,446 | 37,000 | 1.1% | ||||||||||
Universal Turbine Parts, LLC | Alabama / Trading Companies & Distributors | Senior Secured Term Loan A (6.98% (LIBOR + 5.75% with 1.00% LIBOR floor), due 7/22/2021)(3)(13) | 32,013 | 32,013 | 32,013 | 1.0% | ||||||
Senior Secured Term Loan B (12.98% (LIBOR + 11.75% with 1.00% LIBOR floor), due 7/22/2021)(3)(13) | 32,500 | 32,500 | 32,500 | 0.9% | ||||||||
64,513 | 64,513 | 1.9% | ||||||||||
USG Intermediate, LLC | Texas / Leisure Products | Revolving Line of Credit – $2,500 Commitment (10.98% (LIBOR + 9.75% with 1.00% LIBOR floor), due 4/15/2018)(13)(15) | 1,000 | 1,000 | 1,000 | —% | ||||||
Senior Secured Term Loan A (8.48% (LIBOR + 7.25% with 1.00% LIBOR floor), due 4/15/2020)(3)(13) | 13,307 | 13,307 | 13,307 | 0.4% | ||||||||
Senior Secured Term Loan B (13.48% (LIBOR + 12.25% with 1.00% LIBOR floor), due 4/15/2020)(3)(13) | 18,897 | 18,897 | 18,897 | 0.6% | ||||||||
Equity(16) | 1 | — | —% | |||||||||
33,205 | 33,204 | 1.0% | ||||||||||
VC GB Holdings, Inc. | Illinois / Household Durables | Subordinated Secured Term Loan (9.23% (LIBOR + 8.00% with 1.00% LIBOR floor), due 2/28/2025)(8)(13) | 20,000 | 19,712 | 19,992 | 0.6% | ||||||
19,712 | 19,992 | 0.6% |
June 30, 2017 | ||||||||||||
Portfolio Company | Locale / Industry | Investments(1)(45) | Principal Value | Amortized Cost | Fair Value(2) | % of Net Assets | ||||||
LEVEL 3 PORTFOLIO INVESTMENTS | ||||||||||||
Non-Control/Non-Affiliate Investments (less than 5.00% voting control) | ||||||||||||
Venio LLC | Pennsylvania / Professional Services | Second Lien Term Loan (4.00% plus PIK 10.00% (LIBOR + 7.50% with 2.50% LIBOR floor), in non-accrual status effective 12/31/15, due 2/19/2020)(11) | 20,442 | 16,111 | 16,342 | 0.5% | ||||||
16,111 | 16,342 | 0.5% | ||||||||||
Voya CLO 2012-2, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(5)(14)(17) | 38,070 | 22,667 | 22,667 | 0.7% | ||||||
22,667 | 22,667 | 0.7% | ||||||||||
Voya CLO 2012-3, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 0.00%, due 10/15/2022)(5)(14)(17) | 46,632 | 26,445 | 26,445 | 0.8% | ||||||
26,445 | 26,445 | 0.8% | ||||||||||
Voya CLO 2012-4, Ltd. | Cayman Islands / Structured Finance | Income Notes (Residual Interest, current yield 14.13%, due 10/15/2028)(5)(14) | $ | 40,613 | $ | 31,018 | $ | 30,544 | 0.9% | |||
31,018 | 30,544 | 0.9% | ||||||||||
Voya CLO 2014-1, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 15.96%, due 4/18/2026)(5)(6)(14) | 32,383 | 24,613 | 26,177 | 0.8% | ||||||
24,613 | 26,177 | 0.8% | ||||||||||
Voya CLO 2016-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 12.55%, due 10/18/2027)(5)(6)(14) | 28,100 | 27,130 | 23,497 | 0.7% | ||||||
27,130 | 23,497 | 0.7% | ||||||||||
Voya CLO 2017-3, Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 14.89%, due 7/20/2030)(5)(6)(14) | 44,885 | 44,885 | 44,670 | 1.3% | ||||||
44,885 | 44,670 | 1.3% | ||||||||||
Washington Mill CLO Ltd. | Cayman Islands / Structured Finance | Subordinated Notes (Residual Interest, current yield 8.53%, due 4/20/2026)(5)(6)(14) | 22,600 | 16,711 | 14,182 | 0.4% | ||||||
16,711 | 14,182 | 0.4% | ||||||||||
Water Pik, Inc. | Colorado / Personal Products | Second Lien Term Loan (10.05% (LIBOR + 8.75% with 1.00% LIBOR floor), due 1/8/2021)(3)(8)(11) | 13,739 | 13,473 | 13,739 | 0.4% | ||||||
13,473 | 13,739 | 0.4% | ||||||||||
Wheel Pros, LLC | Colorado / Auto Components | Senior Subordinated Secured Note (11.00% (LIBOR + 7.00% with 4.00% LIBOR floor), due 6/29/2020)(3)(11) | 12,000 | 12,000 | 12,000 | 0.4% | ||||||
Senior Subordinated Secured Note (11.00% (LIBOR + 7.00% with 4.00% LIBOR floor), due 6/29/2020)(3)(11) | 5,460 | 5,460 | 5,460 | 0.2% | ||||||||
17,460 | 17,460 | 0.6% | ||||||||||
Total Non-Control/Non-Affiliate Investments (Level 3) | $ | 4,117,868 | $ | 3,915,101 | 116.7% | |||||||
Total Portfolio Investments (Level 3) | $ | 5,981,556 | $ | 5,838,305 | 174.0% |
(1) | The terms “Prospect,” “we,” “us” and “our” mean Prospect Capital Corporation and its subsidiaries unless the context specifically requires otherwise. The securities in which Prospect has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act. |
(2) | Fair value is determined by or under the direction of our Board of Directors. As of June 30, 2018 and June 30, 2017, all of our investments were valued using significant unobservable inputs. In accordance with ASC 820, such investments are classified as Level 3 within the fair value hierarchy. See Notes 2 and 3 within the accompanying notes to consolidated financial statements for further discussion. |
(3) | Security, or a portion thereof, is held by Prospect Capital Funding LLC (“PCF”), our wholly-owned subsidiary and a bankruptcy remote special purpose entity, and is pledged as collateral for the Revolving Credit Facility and such security is not available as collateral to our general creditors (see Note 4). The fair values of the investments held by PCF at June 30, 2018 and June 30, 2017 were $1,307,955 and $1,513,413, respectively, representing 22.8% and 25.9% of our total investments, respectively. |
(4) | In addition to the stated returns, the net profits interest held will be realized upon sale of the borrower or a sale of the interests. |
(5) | This investment is in the equity class of the collateralized loan obligation (“CLO”) security. The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield, calculated using amortized cost, is based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions. |
(6) | Co-investment with another fund managed by an affiliate of our investment adviser, Prospect Capital Management L.P. See Note 13 for further discussion. |
(7) | Engine Group. Inc., Clearstream TV, Inc., and ORC International, Inc., are joint borrowers on the senior secured and the second lien term loans. |
(8) | Syndicated investment which was originated by a financial institution and broadly distributed. |
(9) | Autodata, Inc. and Autodata Solutions, Inc. are joint borrowers. |
(10) | The interest rate on these investments is subject to the base rate of 6-Month LIBOR, which was 2.50% and 1.45% at June 30, 2018 and June 30, 2017, respectively. The current base rate for each investment may be different from the reference rate on June 30, 2018 and June 30, 2017. |
(11) | The interest rate on these investments is subject to the base rate of 3-Month LIBOR, which was 2.34% and 1.30% at June 30, 2018 and June 30, 2017, respectively. The current base rate for each investment may be different from the reference rate on June 30, 2018 and June 30, 2017. |
(12) | The interest rate on these investments is subject to the base rate of 2-Month LIBOR, which was 2.17% and 1.25% at June 30, 2018 and June 30, 2017, respectively.. The current base rate for each investment may be different from the reference rate on June 30, 2018 and June 30, 2017. |
(13) | The interest rate on these investments is subject to the base rate of 1-Month LIBOR, which was 2.09% and 1.23% at June 30, 2018 and June 30, 2017, respectively. The current base rate for each investment may be different from the reference rate on June 30, 2018 and June 30, 2017. |
(14) | Investment has been designated as an investment not “qualifying” under Section 55(a) of the Investment Company Act of 1940 (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of June 30, 2018 and June 30, 2017, our qualifying assets as a percentage of total assets, stood at 73.20% and 71.75%, respectively. We monitor the status of these assets on an ongoing basis. |
(15) | Undrawn committed revolvers and delayed draw term loans to our portfolio companies incur commitment and unused fees ranging from 0.00% to 5.00%. As of June 30, 2018 and June 30, 2017, we had $29,675 and $22,925, respectively, of undrawn revolver and delayed draw term loan commitments to our portfolio companies. |
(16) | Represents non-income producing security that has not paid a dividend in the year preceding the reporting date. |
(17) | The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital with any remaining unamortized investment costs written off if the actual distributions are less than the amortized investment cost. |
(18) | Ellett Brothers, LLC, Evans Sports, Inc., Jerry’s Sports, Inc., Simmons Gun Specialties, Inc., Bonitz Brothers, Inc., and Outdoor Sports Headquarters, Inc. are joint borrowers on the second lien term loan. United Sporting Companies, Inc. is a parent guarantor of this debt investment. |
(19) | CCPI Holdings Inc., a consolidated entity in which we own 100% of the common stock, owns 94.59% of CCPI Inc. (“CCPI”), the operating company, as of June 30, 2018 and June 30, 2017. We report CCPI as a separate controlled company. |
(20) | CP Holdings of Delaware LLC, a consolidated entity in which we own 100% of the membership interests, owns 99.8% of CP Energy Services Inc. (“CP Energy”) as of June 30, 2018, which is an increase from 82.3% as of June 30, 2017. CP Energy owns directly or indirectly 100% of each of CP Well Testing, LLC; Wright Foster Disposals, LLC; Foster Testing Co., Inc.; ProHaul Transports, LLC; and Wright Trucking, Inc. We report CP Energy as a separate controlled company. On October 1, 2017 we restructured our investment in CP Energy. Concurrent with the restructuring, we exchanged $35,048 of Series B Convertible Preferred Stock for $35,048 of senior secured debt. On January 18, 2018, CP Energy redeemed common shares belonging to senior management, which increased our ownership percentage from 82.3% to 94.2% as of March 31, 2018. Our ownership percentage in CP Energy further increased to 99.8% as of June 30, 2018 following the April 6, 2018 merger between Arctic Oilfield Equipment USA, Inc. (“Arctic Equipment"), a controlled portfolio company, and CP Energy. (See endnote #37 and Note 14) |
(21) | Credit Central Holdings of Delaware, LLC (“Credit Central Delaware”), a consolidated entity in which we own 100% of the membership interests, owns 98.26% of Credit Central Loan Company, LLC (f/k/a Credit Central Holdings, LLC (“Credit Central”)) as of June 30, 2018 and June 30, 2017. Credit Central owns 100% of each of Credit Central, LLC; Credit Central South, LLC; Credit Central of Texas, LLC; and Credit Central of Tennessee, LLC, the operating companies. We report Credit Central as a separate controlled company. |
(22) | As of June 30, 2017, Prospect held a 37.1% membership interest in Edmentum Ultimate Holdings, LLC (“Edmentum Holdings”), which owns 100% of the equity of Edmentum, Inc. On February 23, 2018, certain participating members of Edmentum Holdings increased their revolving credit commitment and extended additional credit to Edmentum, Inc. in exchange for additional common units of Edmentum Holdings. As a result, Prospect’s equity ownership was diluted to 11.51% and the investment was transferred from control to affiliate investment classification as of March 31, 2018. |
(23) | First Tower Holdings of Delaware LLC, a consolidated entity in which we own 100% of the membership interests, owns 80.1% of First Tower Finance Company LLC (“First Tower Finance”), which owns 100% of First Tower, LLC, the operating company as of June 30, 2018 and June 30, 2017. We report First Tower Finance as a separate controlled company. |
(24) | Energy Solutions Holdings Inc., a consolidated entity in which we own 100% of equity, owns 100% of Freedom Marine Solutions, LLC (“Freedom Marine”), which owns Vessel Company, LLC, Vessel Company II, LLC and Vessel Company III, LLC. We report Freedom Marine as a separate controlled company. |
(25) | MITY Holdings of Delaware Inc. (“MITY Delaware”), a consolidated entity in which we own 100% of the common stock, owns 95.48% of the equity of MITY, Inc. (f/k/a MITY Enterprises, Inc.) (“MITY”), as of June 30, 2018 and June 30, 2017. MITY owns 100% of each of MITY-Lite, Inc. (“Mity-Lite”); Broda Enterprises USA, Inc.; and Broda Enterprises ULC (“Broda Canada”). We report MITY as a separate controlled company. MITY Delaware has a subordinated unsecured note issued and outstanding to Broda Canada that is denominated in Canadian Dollars (“CAD”). As of June 30, 2018 and June 30, 2017, the principal balance of this note was CAD 7,371. In accordance with ASC 830, Foreign Currency Matters (“ASC 830”), this note was remeasured into our functional currency, US Dollars (USD), and is presented on our Consolidated Schedule of Investments in USD. We formed a separate legal entity domiciled in the United States, MITY FSC, Inc., (“MITY FSC”) in which Prospect owns 96.88% of the equity, and MITY-Lite management owns the remaining portion. MITY FSC does not have material operations. This entity earns commission payments from MITY-Lite based on its sales to foreign customers, and distribute it to its shareholders based on pro-rata ownership. During the three months ended December 31, 2016, we received $406 of such commission, which we recognized as other income. On January 17, 2017, we invested an additional $8,000 of Senior Secured Term Loan A and $8,000 of Senior Secured Term Loan B debt investments in MITY, to fund an acquisition. |
(26) | NPH Property Holdings, LLC, a consolidated entity in which we own 100% of the membership interests, owns 100% of the common equity of National Property REIT Corp. (“NPRC”) (f/k/a National Property Holdings Corp.), a property REIT which holds investments in several real estate properties. Additionally, NPRC invests in online consumer loans through ACL Loan Holdings, Inc. (“ACLLH”) and American Consumer Lending Limited (“ACLL”), its wholly-owned subsidiaries. We report NPRC as a separate controlled company. See Note 3 for further discussion of the properties held by NPRC. On August 1, 2016, we made an investment into ACLL, under the ACLL credit agreement, for senior secured term loans, Term Loan C, with the same terms as the existing ACLLH Term Loan C due to us. On January 1, 2017, we restructured our investment in NPRC and exchanged $55,000 of Senior Secured Term Loan E for common stock. During the quarter ended March 31, 2018, we restructured our investment in NPRC and exchanged $14,274 of ACLLH Senior Secured Term Loan C and $97,578 of ACLL Senior Secured Term Loan C for $111,852 of Senior Secured Term Loan E. On March 31, 2018, Prospect contributed $48,832 to NPRC as an increase to the NPRC Senior Secured Term Loan E. On the same day, NPRC distributed $48,832 as a return of capital to Prospect. |
(27) | Nationwide Acceptance Holdings LLC, a consolidated entity in which we own 100% of the membership interests, owns 94.48% of Nationwide Loan Company LLC (f/k/a Nationwide Acceptance LLC ), the operating company, as of June 30, 2018 and June 30, 2017. We report Nationwide Loan Company LLC as a separate controlled company. On June 1, 2015, Nationwide Acceptance LLC completed a reorganization and was renamed Nationwide Loan Company LLC (“Nationwide”) and formed two new wholly-owned subsidiaries: Pelican Loan Company LLC (“Pelican”) and Nationwide Consumer Loans LLC. Nationwide assigned 100% of the equity interests in its other subsidiaries to Pelican which, in turn, assigned these interests to a new operating company wholly-owned by Pelican named Nationwide Acceptance LLC (“New Nationwide”). New Nationwide also assumed the existing senior subordinated term loan due to Prospect. |
(28) | NMMB Holdings, a consolidated entity in which we own 100% of the equity, owns 91.52% and 96.33% of the fully diluted equity of NMMB, Inc. (“NMMB”) as of June 30, 2018 and June 30, 2017, respectively. NMMB owns 100% of Refuel Agency, Inc., which owns 100% of Armed Forces Communications, Inc. We report NMMB as a separate controlled company. |
(29) | On June 3, 2017, Gulf Coast Machine & Supply Company (“Gulf Coast”) sold all of its assets to a third party, for total consideration of $10,250, including escrowed amounts. The proceeds from the sale were primarily used to repay a $6,115 third party revolving credit facility, and the remainder was used to pay other legal and administrative costs incurred by Gulf Coast. As no proceeds were allocated to Prospect our debt and equity investment in Gulfco was written-off and we recorded a realized loss of $66,103 during the year ended June 30, 2017. In June 2018, Gulf Coast received escrow proceeds of $2,050 related to the sale. On June 28, 2017, Gulf Coast was renamed to SB Forging Company II, Inc. |
(30) | Prospect owns 99.96% of the equity of USES Corp. as of June 30, 2018 and June 30, 2017. |
(31) | Valley Electric Holdings I, Inc., a consolidated entity in which we own 100% of the common stock, owns 100% of Valley Electric Holdings II, Inc. (“Valley Holdings II”), another consolidated entity. Valley Holdings II owns 94.99% of Valley Electric Company, Inc. (“Valley Electric”). Valley Electric owns 100% of the equity of VE Company, Inc., which owns 100% of the equity of Valley Electric Co. of Mt. Vernon, Inc. We report Valley Electric as a separate controlled company. |
(32) | On March 14, 2017, assets previously held by Ark-La-Tex Wireline Services, LLC (“Ark-La-Tex”) were assigned to Wolf Energy Services Company, LLC, a new wholly-owned subsidiary of Wolf Energy Holdings, in exchange for a full reduction of Ark-La-Tex’s Senior Secured Term Loan A and a partial reduction of the Senior Secured Term Loan B cost basis, in total equal to $22,145. The cost basis of the transferred assets is equal to the appraised fair value of assets at the time of transfer. During the three months ended June 30, 2017, Ark-La-Tex Term Loan B was written-off and a loss of $19,818 was realized. On June 30, 2017, the 18.00% Senior Secured Promissory Note, due April 15, 2018, in Wolf Energy, LLC was contributed to equity of Wolf Energy LLC. There was no impact from the transaction due to the note being on non-accrual status and having zero cost basis. |
(33) | Prospect owns 16.04% and 12.63% of the equity in Targus Cayman HoldCo Limited, the parent company of Targus International LLC (“Targus”) as of June 30, 2018 and June 30, 2017, respectively. On September 25, 2017, Prospect exchanged $1,600 of Senior Secured Term Loan A and $4,799 of Senior Secured Term Loan B investments in Targus into 6,120,658 of common shares, and recorded a realized gain of $846, as a result of this transaction. |
(34) | We own 99.9999% of AGC/PEP, LLC (“AGC/PEP”). As of September 30, 2016, AGC/PEP, LLC owned 2,038 out of a total of 93,485 shares (including 7,456 vested and unvested management options) of American Gilsonite Holding Company (“AGC Holdco”), which owns 100% of American Gilsonite Company (“AGC”). On October 24, 2016, AGC filed for a joint prepackaged plan of reorganization under Chapter 11 of the bankruptcy code. During the year ended June 30, 2017, AGC emerged from bankruptcy and AGC Holdco was dissolved. AGC/PEP received a total of 131 shares, representing a total ownership stake of 0.05% in AGC. |
(35) | Centerfield Media Holding Company and Oology Direct Holdings, Inc. are joint borrowers and guarantors on the senior secured loan facilities. |
(36) | Keystone Acquisition Corp. is the parent borrower on the second lien term loan. Other joint borrowers on this debt investment include Keystone Peer Review Organization, Inc., KEPRO Acquisitions, Inc., APS Healthcare Bethesda, Inc., Ohio KEPRO, Inc., and APS Healthcare Quality Review, Inc. |
(37) | Arctic Oilfield Equipment USA, Inc., a consolidated entity in which we own 100% of the common equity, owns 70% of the equity units of Arctic Energy Services, LLC (“Arctic Energy”), the operating company. Our ownership of Arctic Energy as of June 30, 2017 includes a preferred interest in their holdings of all the Class D, Class E, Class C, and Class A Units (in order of priority returns). These unit classes are senior to management’s interests in the F and B Units. As of June 30, 2017, we reported Arctic Energy as a separate controlled company. On April 6, 2018, Arctic Equipment merged with CP Energy, with CP Energy continuing as the surviving corporation. As a result of the transaction, our equity interest in Arctic Equipment was exchanged for newly issued common shares of CP Energy (See Note 14). |
(38) | NCP Finance Limited Partnership, NCP Finance Ohio, LLC, and certain affiliates thereof are joint borrowers on the subordinated secured term loan. |
(39) | As of June 30, 2018 and June 30, 2017, Prospect owns 8.57% of the equity in Encinitas Watches Holdco, LLC (f/k/a Nixon Holdco, LLC), the parent company of Nixon, Inc. On February 26, 2018, Prospect entered into a debt forgiveness agreement with Nixon, Inc., which terminated $17,472 Senior Secured Term Loan receivable due to us. We recorded a realized loss of $14,197 in our Consolidated Statement of Operations for the year ended June 30, 2018 as a result of this transaction. |
(40) | On May 29, 2018, Prospect exercised its rights and remedies under its loan documents to exercise the shareholder voting rights in respect of the stock of Pacific World Corporation (“Pacific World”) and to appoint a new Board of Directors of Pacific World. As a result, as of June 30, 2018, Prospect’s investment in Pacific World is classified as a control investment. |
(41) | Our wholly-owned subsidiary Prospect Small Business Lending, LLC purchases small business whole loans from small business loan originators, including On Deck Capital, Inc. |
(42) | Turning Point Brands, Inc. and North Atlantic Trading Company, Inc. are joint borrowers and guarantors on the secured loan facility. |
(43) | The overriding royalty interests held receive payments at the stated rates based upon operations of the borrower. |
(44) | The following shows the composition of our investment portfolio at cost by control designation, investment type, and by industry as of June 30, 2018: |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Cost Total | ||||||||||||
Control Investments | ||||||||||||||||||
Aerospace & Defense | $ | 47,099 | $ | — | $ | — | $ | — | $ | 22,738 | $ | 69,837 | ||||||
Commercial Services & Supplies | 117,861 | — | — | 7,200 | 6,849 | 131,910 | ||||||||||||
Construction & Engineering | 38,211 | — | — | — | 26,204 | 64,415 | ||||||||||||
Consumer Finance | — | 337,972 | — | — | 116,839 | 454,811 | ||||||||||||
Electronic Equipment, Instruments & Components | 20,700 | — | — | — | 6,759 | 27,459 | ||||||||||||
Energy Equipment & Services | 35,048 | — | — | — | 191,812 | 226,860 | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 293,203 | — | — | — | 206,655 | 499,858 | ||||||||||||
Health Care Providers & Services | 212,701 | — | — | — | — | 212,701 | ||||||||||||
Machinery | — | 28,622 | — | — | 6,866 | 35,488 | ||||||||||||
Media | 8,614 | — | — | — | 12,869 | 21,483 | ||||||||||||
Online Lending | 226,180 | — | — | — | 100,949 | 327,129 | ||||||||||||
Personal Products | 213,575 | — | — | — | 15,000 | 228,575 | ||||||||||||
Total Control Investments | $ | 1,213,192 | $ | 366,594 | $ | — | $ | 7,200 | $ | 713,540 | $ | 2,300,526 | ||||||
Affiliate Investments | ||||||||||||||||||
Diversified Consumer Services | $ | — | $ | 7,834 | $ | — | $ | 31,348 | $ | 6,577 | $ | 45,759 |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Cost Total | ||||||||||||
Textiles, Apparel & Luxury Goods | — | — | — | — | 9,878 | 9,878 | ||||||||||||
Total Affiliate Investments | $ | — | $ | 7,834 | $ | — | $ | 31,348 | $ | 16,455 | $ | 55,637 | ||||||
Non-Control/Non-Affiliate Investments | ||||||||||||||||||
Auto Components | $ | — | $ | 12,681 | $ | — | $ | — | $ | — | $ | 12,681 | ||||||
Building Products | — | 9,905 | — | — | — | 9,905 | ||||||||||||
Capital Markets | — | 19,799 | — | — | — | 19,799 | ||||||||||||
Commercial Services & Supplies | 90,364 | 163,913 | — | — | — | 254,277 | ||||||||||||
Communications Equipment | — | 39,860 | — | — | — | 39,860 | ||||||||||||
Consumer Finance | 30,570 | — | — | — | — | 30,570 | ||||||||||||
Distributors | 343,659 | 127,091 | — | — | — | 470,750 | ||||||||||||
Diversified Consumer Services | 9,647 | 118,289 | — | — | — | 127,936 | ||||||||||||
Electronic Equipment, Instruments & Components | 12,490 | 14,856 | — | — | — | 27,346 | ||||||||||||
Energy Equipment & Services | 30,511 | — | — | — | — | 30,511 | ||||||||||||
Food Products | — | 9,884 | — | — | — | 9,884 | ||||||||||||
Health Care Equipment & Supplies | 35,815 | 7,464 | — | — | — | 43,279 | ||||||||||||
Health Care Providers & Services | 145,336 | 61,909 | — | — | 1,252 | 208,497 | ||||||||||||
Hotels, Restaurants & Leisure | 29,813 | 7,482 | — | — | — | 37,295 | ||||||||||||
Household & Personal Products | 24,938 | — | — | — | — | 24,938 | ||||||||||||
Household Durables | 16,894 | 25,645 | — | — | — | 42,539 | ||||||||||||
Insurance | — | 2,986 | — | — | — | 2,986 | ||||||||||||
Internet & Direct Marketing Retail | 4,813 | 35,000 | — | — | — | 39,813 | ||||||||||||
Internet Software & Services | 215,791 | 13,926 | — | — | — | 229,717 | ||||||||||||
IT Services | 160,588 | 21,595 | — | — | — | 182,183 | ||||||||||||
Leisure Products | 34,626 | 10,904 | — | — | 1 | 45,531 | ||||||||||||
Media | 118,605 | 2,975 | — | — | — | 121,580 | ||||||||||||
Online Lending | — | — | — | 30 | — | 30 | ||||||||||||
Paper & Forest Products | — | 11,328 | — | — | — | 11,328 | ||||||||||||
Pharmaceuticals | — | 11,882 | — | — | — | 11,882 | ||||||||||||
Professional Services | 9,468 | 64,804 | — | — | — | 74,272 | ||||||||||||
Real Estate Management & Development | 41,860 | — | — | — | — | 41,860 | ||||||||||||
Software | — | 66,435 | — | — | — | 66,435 | ||||||||||||
Technology Hardware, Storage & Peripherals | — | 12,384 | — | — | — | 12,384 | ||||||||||||
Textiles, Apparel & Luxury Goods | — | 36,551 | — | — | — | 36,551 | ||||||||||||
Tobacco | — | 14,392 | — | — | — | 14,392 | ||||||||||||
Trading Companies & Distributors | 63,863 | — | — | — | — | 63,863 | ||||||||||||
Transportation Infrastructure | — | 27,494 | — | — | — | 27,494 | ||||||||||||
Structured Finance (A) | — | — | 1,102,927 | — | — | 1,102,927 | ||||||||||||
Total Non-Control/ Non-Affiliate | $ | 1,419,651 | $ | 951,434 | $ | 1,102,927 | $ | 30 | $ | 1,253 | $ | 3,475,295 | ||||||
Total Portfolio Investment Cost | $ | 2,632,843 | $ | 1,325,862 | $ | 1,102,927 | $ | 38,578 | $ | 731,248 | $ | 5,831,458 |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Control Investments | ||||||||||||||||||||
Aerospace & Defense | $ | 47,099 | $ | — | $ | — | $ | — | $ | 35,179 | $ | 82,278 | 2.4 | % | ||||||
Commercial Services & Supplies | 67,011 | — | — | 5,563 | 2,639 | 75,213 | 2.2 | % |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Construction & Engineering | 38,211 | — | — | — | 12,586 | 50,797 | 1.5 | % | ||||||||||||
Consumer Finance | — | 342,331 | — | — | 211,209 | 553,540 | 16.2 | % | ||||||||||||
Electronic Equipment, Instruments & Components | 20,700 | — | — | — | 15,056 | 35,756 | 1.1 | % | ||||||||||||
Energy Equipment & Services | 35,048 | — | — | — | 103,456 | 138,504 | 4.1 | % | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 293,203 | — | — | — | 518,712 | 811,915 | 23.8 | % | ||||||||||||
Health Care Providers & Services | 197,621 | — | — | — | — | 197,621 | 5.8 | % | ||||||||||||
Machinery | — | 28,622 | — | — | 3,264 | 31,886 | 0.9 | % | ||||||||||||
Media | 8,614 | — | — | — | 10,121 | 18,735 | 0.6 | % | ||||||||||||
Online Lending | 226,180 | — | — | — | 16,881 | 243,061 | 7.1 | % | ||||||||||||
Personal Products | 165,020 | — | — | — | — | 165,020 | 4.9 | % | ||||||||||||
Total Control Investments | $ | 1,098,707 | $ | 370,953 | $ | — | $ | 5,563 | $ | 929,103 | $ | 2,404,326 | 70.6 | % | ||||||
Fair Value % of Net Assets | 32.2 | % | 10.9 | % | — | % | 0.2 | % | 27.3 | % | 70.6 | % | ||||||||
Affiliate Investments | ||||||||||||||||||||
Diversified Consumer Services | — | 7,834 | — | 27,382 | — | 35,216 | 1.0 | % | ||||||||||||
Textiles, Apparel & Luxury Goods | — | — | — | 23,220 | 23,220 | 0.7 | % | |||||||||||||
Total Affiliate Investments | $ | — | $ | 7,834 | $ | — | $ | 27,382 | $ | 23,220 | $ | 58,436 | 1.7 | % | ||||||
Fair Value % of Net Assets | — | % | 0.2 | % | — | % | 0.8 | % | 0.7 | % | 1.7 | % | ||||||||
Non-Control/Non-Affiliate Investments | ||||||||||||||||||||
Auto Components | $ | — | $ | 12,887 | $ | — | $ | — | $ | — | $ | 12,887 | 0.4 | % | ||||||
Building Products | — | 10,000 | — | — | — | 10,000 | 0.3 | % | ||||||||||||
Capital Markets | — | 20,000 | — | — | — | 20,000 | 0.6 | % | ||||||||||||
Commercial Services & Supplies | 89,658 | 164,236 | — | — | 917 | 254,811 | 7.5 | % | ||||||||||||
Communications Equipment | — | 40,000 | — | — | — | 40,000 | 1.2 | % | ||||||||||||
Consumer Finance | 33,438 | — | — | — | — | 33,438 | 1.0 | % | ||||||||||||
Distributors | 343,659 | 58,806 | — | — | — | 402,465 | 11.8 | % | ||||||||||||
Diversified Consumer Services | 9,647 | 118,289 | — | — | — | 127,936 | 3.8 | % | ||||||||||||
Electronic Equipment, Instruments & Components | 12,335 | 14,873 | — | — | — | 27,208 | 0.8 | % | ||||||||||||
Energy Equipment & Services | 32,070 | — | — | — | — | 32,070 | 0.9 | % | ||||||||||||
Food Products | — | 9,886 | — | — | — | 9,886 | 0.3 | % | ||||||||||||
Health Care Equipment & Supplies | 35,815 | 7,464 | — | — | — | 43,279 | 1.3 | % | ||||||||||||
Health Care Providers & Services | 144,130 | 61,933 | — | — | 446 | 206,509 | 6.0 | % | ||||||||||||
Hotels, Restaurants & Leisure | 29,813 | 7,482 | — | — | — | 37,295 | 1.1 | % | ||||||||||||
Household & Personal Products | 24,938 | — | — | — | — | 24,938 | 0.7 | % | ||||||||||||
Household Durables | 15,728 | 25,895 | — | — | — | 41,623 | 1.2 | % | ||||||||||||
Insurance | — | 2,986 | — | — | — | 2,986 | 0.1 | % | ||||||||||||
Internet & Direct Marketing Retail | 4,813 | 35,000 | — | — | — | 39,813 | 1.2 | % | ||||||||||||
Internet Software & Services | 215,791 | 14,000 | — | — | — | 229,791 | 6.7 | % | ||||||||||||
IT Services | 160,588 | 21,990 | — | — | — | 182,578 | 5.4 | % | ||||||||||||
Leisure Products | 34,626 | 11,000 | — | — | — | 45,626 | 1.3 | % | ||||||||||||
Media | 118,655 | 2,975 | — | — | — | 121,630 | 3.6 | % | ||||||||||||
Online Lending | — | — | — | 17 | — | 17 | — | % | ||||||||||||
Paper & Forest Products | — | 11,226 | — | — | — | 11,226 | 0.3 | % | ||||||||||||
Pharmaceuticals | — | 12,000 | — | — | — | 12,000 | 0.3 | % | ||||||||||||
Professional Services | 9,608 | 67,383 | — | — | — | 76,991 | 2.3 | % | ||||||||||||
Real Estate Management & Development | 41,860 | — | — | — | — | 41,860 | 1.2 | % | ||||||||||||
Software | — | 67,265 | — | — | — | 67,265 | 2.0 | % |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO (C) | Unsecured Debt | Equity (B) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Technology Hardware, Storage & Peripherals | — | 12,500 | — | — | — | 12,500 | 0.4 | % | ||||||||||||
Textiles, Apparel & Luxury Goods | — | 37,000 | — | — | — | 37,000 | 1.1 | % | ||||||||||||
Tobacco | — | 14,392 | — | — | — | 14,392 | 0.4 | % | ||||||||||||
Trading Companies & Distributors | 56,199 | — | — | — | — | 56,199 | 1.6 | % | ||||||||||||
Transportation Infrastructure | — | 28,104 | — | — | — | 28,104 | 0.8 | % | ||||||||||||
Structured Finance (A) | — | — | 960,194 | — | — | 960,194 | 28.2 | % | ||||||||||||
Total Non-Control/ Non-Affiliate | $ | 1,413,371 | $ | 889,572 | $ | 960,194 | $ | 17 | $ | 1,363 | $ | 3,264,517 | 95.8 | % | ||||||
Fair Value % of Net Assets | 41.5 | % | 26.1 | % | 28.2 | % | — | % | — | % | 95.8 | % | ||||||||
Total Portfolio | $ | 2,512,078 | $ | 1,268,359 | $ | 960,194 | $ | 32,962 | $ | 953,686 | $ | 5,727,279 | 168.1 | % | ||||||
Fair Value % of Net Assets | 73.7 | % | 37.2 | % | 28.2 | % | 1.0 | % | 28.0 | % | 168.1 | % |
Industry | 1st Lien | 2nd Lien | CLO Residual Interest | Unsecured Debt | Equity (C) | Cost Total | ||||||||||||
Control Investments | ||||||||||||||||||
Aerospace & Defense | $ | 47,099 | $ | — | $ | — | $ | — | $ | 22,738 | $ | 69,837 | ||||||
Commercial Services & Supplies | 114,864 | — | — | 7,200 | 6,849 | 128,913 | ||||||||||||
Construction & Engineering | 36,054 | — | — | — | 26,204 | 62,258 | ||||||||||||
Consumer Finance | — | 323,188 | — | — | 110,395 | 433,583 | ||||||||||||
Diversified Consumer Services | — | 7,834 | — | 30,734 | 6,577 | 45,145 | ||||||||||||
Electronic Equipment, Instruments & Components | 21,182 | — | — | — | 6,759 | 27,941 | ||||||||||||
Energy Equipment & Services | — | — | — | — | 223,787 | 223,787 | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 291,315 | — | — | — | 83,065 | 374,380 | ||||||||||||
Machinery | — | 28,622 | — | — | 6,866 | 35,488 | ||||||||||||
Media | 10,614 | — | — | — | 12,869 | 23,483 | ||||||||||||
Online Lending | 269,166 | — | — | — | 146,750 | 415,916 | ||||||||||||
Total Control Investments | $ | 790,294 | $ | 359,644 | $ | — | $ | 37,934 | $ | 652,859 | $ | 1,840,731 | ||||||
Affiliate Investments | ||||||||||||||||||
Textiles, Apparel & Luxury Goods | $ | 19,478 | $ | — | $ | — | $ | — | $ | 3,479 | $ | 22,957 | ||||||
Total Affiliate Investments | $ | 19,478 | $ | — | $ | — | $ | — | $ | 3,479 | $ | 22,957 | ||||||
Non-Control/Non-Affiliate Investments | ||||||||||||||||||
Air Freight & Logistics | $ | 51,952 | $ | — | $ | — | $ | — | $ | — | $ | 51,952 | ||||||
Auto Components | — | 30,222 | — | — | — | 30,222 | ||||||||||||
Capital Markets | — | 14,796 | — | — | — | 14,796 | ||||||||||||
Chemicals | — | 17,489 | — | — | — | 17,489 | ||||||||||||
Commercial Services & Supplies | 83,884 | 141,388 | — | — | — | 225,272 | ||||||||||||
Consumer Finance | 9,831 | 26,455 | — | — | — | 36,286 | ||||||||||||
Distributors | — | 140,847 | — | — | — | 140,847 | ||||||||||||
Diversified Consumer Services | — | 143,767 | — | — | — | 143,767 | ||||||||||||
Diversified Telecommunication Services | — | 4,395 | — | — | — | 4,395 |
Industry | 1st Lien | 2nd Lien | CLO Residual Interest | Unsecured Debt | Equity (C) | Cost Total | ||||||||||||
Electronic Equipment, Instruments & Components | 9,755 | — | — | — | — | 9,755 | ||||||||||||
Energy Equipment & Services | 27,232 | — | — | — | — | 27,232 | ||||||||||||
Health Care Providers & Services | 356,468 | 65,199 | — | — | 1,252 | 422,919 | ||||||||||||
Hotels, Restaurants & Leisure | 127,638 | — | — | — | — | 127,638 | ||||||||||||
Household Durables | 126,319 | 19,712 | — | — | — | 146,031 | ||||||||||||
Internet Software & Services | 205,441 | 13,907 | — | — | — | 219,348 | ||||||||||||
IT Services | — | 19,531 | — | — | — | 19,531 | ||||||||||||
Leisure Products | 33,204 | 10,880 | — | — | 1 | 44,085 | ||||||||||||
Marine | — | 8,919 | — | — | — | 8,919 | ||||||||||||
Media | 442,654 | 2,971 | — | — | — | 445,625 | ||||||||||||
Metals & Mining | 9,953 | — | — | — | — | 9,953 | ||||||||||||
Online Lending | — | — | — | 8,434 | — | 8,434 | ||||||||||||
Paper & Forest Products | — | 11,295 | — | — | — | 11,295 | ||||||||||||
Personal Products | 209,225 | 13,473 | — | — | — | 222,698 | ||||||||||||
Pharmaceuticals | 117,989 | — | — | — | — | 117,989 | ||||||||||||
Professional Services | 48,131 | 16,111 | — | — | — | 64,242 | ||||||||||||
Software | — | 56,041 | — | — | — | 56,041 | ||||||||||||
Textiles, Apparel & Luxury Goods | 225,777 | 36,446 | — | — | — | 262,223 | ||||||||||||
Tobacco | — | 14,365 | — | — | — | 14,365 | ||||||||||||
Trading Companies & Distributors | 64,513 | — | — | — | — | 64,513 | ||||||||||||
Structured Finance (B) | — | — | 1,150,006 | — | — | 1,150,006 | ||||||||||||
Total Non-Control/ Non-Affiliate | $ | 2,149,966 | $ | 808,209 | $ | 1,150,006 | $ | 8,434 | $ | 1,253 | $ | 4,117,868 | ||||||
Total Portfolio Investment Cost | $ | 2,959,738 | $ | 1,167,853 | $ | 1,150,006 | $ | 46,368 | $ | 657,591 | $ | 5,981,556 |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO Residual Interest | Unsecured Debt | Equity (C) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Control Investments | ||||||||||||||||||||
Aerospace & Defense | $ | 47,099 | $ | — | $ | — | $ | — | $ | 24,219 | $ | 71,318 | 2.1 | % | ||||||
Commercial Services & Supplies | 63,209 | — | — | 5,659 | 20,161 | 89,029 | 2.7 | % | ||||||||||||
Construction & Engineering | 32,509 | — | — | — | — | 32,509 | 1.0 | % | ||||||||||||
Consumer Finance | — | 329,788 | — | — | 137,180 | 466,968 | 13.9 | % | ||||||||||||
Diversified Consumer Services | — | 7,834 | — | 38,775 | 286 | 46,895 | 1.4 | % | ||||||||||||
Electronic Equipment, Instruments & Components | 21,182 | — | — | — | 21,870 | 43,052 | 1.3 | % | ||||||||||||
Energy Equipment & Services | — | — | — | — | 121,197 | 121,197 | 3.6 | % | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 291,315 | — | — | — | 333,022 | 624,337 | 18.6 | % | ||||||||||||
Machinery | — | 28,622 | — | — | 4,056 | 32,678 | 1.0 | % | ||||||||||||
Media | 10,614 | — | — | — | 10,211 | 20,825 | 0.6 | % | ||||||||||||
Online Lending | 269,166 | — | — | — | 93,801 | 362,967 | 10.8 | % | ||||||||||||
Total Control Investments | $ | 735,094 | $ | 366,244 | $ | — | $ | 44,434 | $ | 766,003 | $ | 1,911,775 | 57.0 | % | ||||||
Fair Value % of Net Assets | 21.9 | % | 10.9 | % | — | % | 1.3 | % | 22.8 | % | 57.0 | % | ||||||||
Affiliate Investments | ||||||||||||||||||||
Textiles, Apparel & Luxury Goods | $ | 6,128 | $ | — | $ | — | $ | — | $ | 5,301 | $ | 11,429 | 0.3 | % | ||||||
Total Affiliate Investments | $ | 6,128 | $ | — | $ | — | $ | — | $ | 5,301 | $ | 11,429 | 0.3 | % | ||||||
Fair Value % of Net Assets | 0.2 | % | — | % | — | % | — | % | 0.2 | % | 0.3 | % | ||||||||
Non-Control/Non-Affiliate Investments |
Industry | 1st Lien Term Loan | 2nd Lien Term Loan | CLO Residual Interest | Unsecured Debt | Equity (C) | Fair Value Total | Fair Value % of Net Assets | |||||||||||||
Air Freight & Logistics | $ | 51,952 | $ | — | $ | — | $ | — | $ | — | $ | 51,952 | 1.5 | % | ||||||
Auto Components | — | 30,460 | — | — | — | 30,460 | 0.9 | % | ||||||||||||
Capital Markets | — | 15,000 | — | — | — | 15,000 | 0.4 | % | ||||||||||||
Chemicals | — | 16,699 | — | — | — | 16,699 | 0.5 | % | ||||||||||||
Commercial Services & Supplies | 83,884 | 138,857 | — | — | 864 | 223,605 | 6.7 | % | ||||||||||||
Consumer Finance | 10,000 | 25,973 | — | — | — | 35,973 | 1.1 | % | ||||||||||||
Distributors | — | 83,225 | — | — | — | 83,225 | 2.5 | % | ||||||||||||
Diversified Consumer Services | — | 143,767 | — | — | — | 143,767 | 4.3 | % | ||||||||||||
Diversified Telecommunication Services | — | 4,410 | — | — | — | 4,410 | 0.1 | % | ||||||||||||
Electronic Equipment, Instruments & Components | 8,794 | — | — | — | — | 8,794 | 0.3 | % | ||||||||||||
Energy Equipment & Services | 10,463 | — | — | — | — | 10,463 | 0.3 | % | ||||||||||||
Health Care Providers & Services | 355,200 | 65,407 | — | — | 782 | 421,389 | 12.6 | % | ||||||||||||
Hotels, Restaurants & Leisure | 103,897 | — | — | — | — | 103,897 | 3.1 | % | ||||||||||||
Household Durables | 126,191 | 19,992 | — | — | — | 146,183 | 4.4 | % | ||||||||||||
Internet Software & Services | 205,441 | 13,907 | — | — | — | 219,348 | 6.5 | % | ||||||||||||
IT Services | — | 20,000 | — | — | — | 20,000 | 0.6 | % | ||||||||||||
Leisure Products | 33,204 | 11,000 | — | — | — | 44,204 | 1.3 | % | ||||||||||||
Marine (A) | — | 8,800 | — | — | — | 8,800 | 0.3 | % | ||||||||||||
Media | 442,704 | 2,971 | — | — | — | 445,675 | 13.3 | % | ||||||||||||
Metals & Mining | 10,000 | — | — | — | — | 10,000 | 0.3 | % | ||||||||||||
Online Lending | — | — | — | 7,964 | — | 7,964 | 0.2 | % | ||||||||||||
Paper & Forest Products | — | 11,500 | — | — | — | 11,500 | 0.3 | % | ||||||||||||
Personal Products | 179,009 | 13,739 | — | — | — | 192,748 | 5.7 | % | ||||||||||||
Pharmaceuticals | 117,989 | — | — | — | — | 117,989 | 3.5 | % | ||||||||||||
Professional Services | 48,131 | 16,342 | — | — | — | 64,473 | 1.9 | % | ||||||||||||
Software | — | 55,150 | — | — | — | 55,150 | 1.6 | % | ||||||||||||
Textiles, Apparel & Luxury Goods | 225,777 | 37,000 | — | — | — | 262,777 | 7.8 | % | ||||||||||||
Tobacco | — | 14,431 | — | — | — | 14,431 | 0.4 | % | ||||||||||||
Trading Companies & Distributors | 64,513 | — | — | — | — | 64,513 | 1.9 | % | ||||||||||||
Structured Finance (B) | — | — | 1,079,712 | — | — | 1,079,712 | 32.2 | % | ||||||||||||
Total Non-Control/ Non-Affiliate | $ | 2,077,149 | $ | 748,630 | $ | 1,079,712 | $ | 7,964 | $ | 1,646 | $ | 3,915,101 | 116.7 | % | ||||||
Fair Value % of Net Assets | 61.9 | % | 22.3 | % | 32.2 | % | 0.2 | % | — | % | 116.7 | % | ||||||||
Total Portfolio | $ | 2,818,371 | $ | 1,114,874 | $ | 1,079,712 | $ | 52,398 | $ | 772,950 | $ | 5,838,305 | 174 | % | ||||||
Fair Value % of Net Assets | 84.0 | % | 33.2 | % | 32.2 | % | 1.6 | % | 23.0 | % | 174.0 | % |
(46) | The interest rate on these investments, excluding those on non-accrual, contains a paid in kind (“PIK”) provision, whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments. |
Security Name | PIK Rate - Capitalized | PIK Rate - Paid as cash | Maximum Current PIK Rate | |
CCPI Inc. | —% | 7.00% | 7.00% | |
Cinedigm DC Holdings, LLC | —% | 2.50% | 2.5% | |
Credit Central Loan Company | —% | 10.00% | 10.00% | |
Echelon Transportation, LLC (f/k/a Echelon Aviation LLC) | N/A | N/A | 2.25% | (A) |
Echelon Transportation, LLC (f/k/a Echelon Aviation LLC) | N/A | N/A | 1.00% | (A) |
Edmentum Ultimate Holdings, LLC - Unsecured Senior PIK Note | 8.5% | —% | 8.50% | |
First Tower Finance Company LLC | 1.45% | 8.55% | 10.00% | |
InterDent, Inc. - Senior Secured Team Loan B | 4.25% | —% | 4.25% | |
InterDent, Inc. - Senior Secured Team Loan C | 18.00% | —% | 18.00% | |
MITY, Inc. | —% | 10.00% | 10.00% | |
National Property REIT Corp. - Senior Secured Term Loan A | —% | 10.50% | 10.50% | |
National Property REIT Corp. - Senior Secured Term Loan E | —% | 1.50% | 1.50% | |
Nationwide Loan Company LLC | —% | 10.00% | 10.00% | |
Spartan Energy Services, Inc. | 13.98% | —% | 13.98% | |
Valley Electric Co. of Mt. Vernon, Inc. | —% | 2.50% | 2.50% | |
Valley Electric Company, Inc. | 7.17% | 2.83% | 10.00% | |
Venio LLC | 10.00% | —% | 10.00% |
Security Name | PIK Rate - Capitalized | PIK Rate - Paid as cash | Maximum Current PIK Rate | |
CCPI Inc. | —% | 7.00% | 7.00% | |
Cinedigm DC Holdings, LLC | —% | 2.50% | 2.50% | |
Credit Central Loan Company | —% | 10.00% | 10.00% | |
Echelon Aviation LLC | N/A | N/A | 2.25% | (C) |
Echelon Aviation LLC | N/A | N/A | 1.00% | (D) |
Edmentum Ultimate Holdings, LLC - Unsecured Senior PIK Note | 8.50% | —% | 8.50% | |
First Tower Finance Company LLC | 3.92% | 3.08% | 7.00% | |
MITY, Inc. | —% | 10.00% | 10.00% | |
National Property REIT Corp. - Senior Secured Term Loan A | —% | 5.50% | 5.50% | |
National Property REIT Corp. - Senior Secured Term Loan E | —% | 5.00% | 5.00% | |
National Property REIT Corp. - Senior Secured Term Loan C to ACL Loan Holdings, Inc. | —% | 5.00% | 5.00% | |
National Property REIT Corp. - Senior Secured Term Loan C to American Consumer Lending Limited | —% | 5.00% | 5.00% | |
Nationwide Loan Company LLC | —% | 10.00% | 10.00% | |
Targus International, LLC - Senior Secured Term Loan A | 15.00% | —% | 15.00% | |
Targus International, LLC - Senior Secured Term Loan B | 15.00% | —% | 15.00% | |
Valley Electric Co. of Mt. Vernon, Inc. | —% | 2.50% | 2.50% | |
Valley Electric Company, Inc. | 8.50% | —% | 8.50% |
(47) | As defined in the 1940 Act, we are deemed to “Control” these portfolio companies because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended June 30, 2018 with these controlled investments were as follows: |
Portfolio Company | Fair Value at June 30, 2017 | Gross Additions (Cost)* | Gross Reductions (Cost)** | Net change in unrealized gains (losses) | Fair Value at June 30, 2018 | Interest income | Dividend income | Other income | Net realized gains (losses) | ||||||||||||||||||
Arctic Energy Services, LLC *** | $ | 17,370 | $ | — | $ | (60,876 | ) | $ | 43,506 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
CCPI Inc. | 43,052 | — | (482 | ) | (6,814 | ) | 35,756 | 3,704 | — | — | — | ||||||||||||||||
CP Energy Services Inc. *** | 72,216 | 65,976 | — | (14,931 | ) | 123,261 | 3,394 | — | 228 | — | |||||||||||||||||
Credit Central Loan Company, LLC | 64,435 | 2,240 | — | 10,002 | 76,677 | 12,755 | — | 903 | — | ||||||||||||||||||
Echelon Transportation, LLC (f/k/a Echelon Aviation LLC) | 71,318 | — | — | 10,960 | 82,278 | 6,360 | — | — | — | ||||||||||||||||||
Edmentum Ultimate Holdings, LLC **** | 46,895 | 5,394 | (39,196 | ) | (13,093 | ) | — | 572 | — | — | — | ||||||||||||||||
First Tower Finance Company LLC | 365,588 | 21,352 | (6,735 | ) | 62,805 | 443,010 | 47,422 | — | 2,664 | — | |||||||||||||||||
Freedom Marine Solutions, LLC | 23,994 | 982 | — | (11,939 | ) | 13,037 | — | — | — | — | |||||||||||||||||
Interdent, Inc. ***** | — | 209,120 | — | (11,499 | ) | 197,621 | 4,775 | — | — | — | |||||||||||||||||
MITY, Inc. | 76,512 | — | — | (17,618 | ) | 58,894 | 8,206 | — | 1,093 | 13 | |||||||||||||||||
National Property REIT Corp. | 987,304 | 160,769 | (124,078 | ) | 30,981 | 1,054,976 | 90,582 | 11,279 | 8,834 | — | |||||||||||||||||
Nationwide Loan Company LLC | 36,945 | 4,370 | — | (7,462 | ) | 33,853 | 3,485 | — | — | — | |||||||||||||||||
NMMB, Inc. | 20,825 | — | (1,999 | ) | (91 | ) | 18,735 | 1,455 | — | — | — | ||||||||||||||||
Pacific World Corporation ****** | — | 198,149 | (250 | ) | (32,879 | ) | 165,020 | 3,742 | — | — | — | ||||||||||||||||
R-V Industries, Inc. | 32,678 | — | — | (792 | ) | 31,886 | 3,064 | — | — | — | |||||||||||||||||
SB Forging Company II, Inc. (f/k/a Gulf Coast Machine & Supply Company) | 1,940 | — | — | 254 | 2,194 | — | — | — | — | ||||||||||||||||||
USES Corp. | 12,517 | 3,000 | (3 | ) | 805 | 16,319 | — | — | — | — | |||||||||||||||||
Valley Electric Company, Inc. | 32,509 | 2,157 | — | 16,131 | 50,797 | 5,971 | — | 138 | — | ||||||||||||||||||
Wolf Energy, LLC | 5,677 | — | (3,009 | ) | (2,656 | ) | 12 | — | — | 1,220 | — | ||||||||||||||||
Total | $ | 1,911,775 | $ | 673,509 | $ | (236,628 | ) | $ | 55,670 | $ | 2,404,326 | $ | 195,487 | $ | 11,279 | $ | 15,080 | $ | 13 |
(48) | As defined in the 1940 Act, we are deemed to be an “Affiliated company” of these portfolio companies because we own more than 5% of the portfolio company’s outstanding voting securities. Transactions during the year ended June 30, 2018 with these affiliated investments were as follows: |
Portfolio Company | Fair Value at June 30, 2017 | Gross Additions (Cost)* | Gross Reductions (Cost)** | Net unrealized gains (losses) | Fair Value at June 30, 2018 | Interest income | Dividend income | Other income | Net realized gains (losses) | ||||||||||||||||||
Edmentum Ultimate Holdings, LLC *** | $ | — | $ | 34,416 | $ | — | $ | 800 | $ | 35,216 | $ | 348 | $ | — | $ | — | $ | — | |||||||||
Nixon, Inc. | — | — | (14,197 | ) | 14,197 | — | — | — | — | (14,197 | ) | ||||||||||||||||
Targus International, LLC | 11,429 | 1,117 | — | 10,674 | 23,220 | 205 | — | — | 846 | ||||||||||||||||||
Total | $ | 11,429 | $ | 35,533 | $ | (14,197 | ) | $ | 25,671 | $ | 58,436 | $ | 553 | $ | — | $ | — | $ | (13,351 | ) |
(49) | As defined in the 1940 Act, we are deemed to “Control” these portfolio companies because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended June 30, 2017 with these controlled investments were as follows: |
Portfolio Company | Fair Value at June 30, 2016 | Gross Additions (Cost)* | Gross Reductions (Cost)** | Net unrealized gains (losses) | Fair Value at June 30, 2017 | Interest income | Dividend income | Other income | Net realized gains (losses) | ||||||||||||||||||
Arctic Energy Services, LLC | $ | 38,340 | $ | — | $ | — | $ | (20,970 | ) | $ | 17,370 | $ | — | $ | — | $ | — | $ | — | ||||||||
CCPI Inc. | 41,356 | — | (327 | ) | 2,023 | 43,052 | 2,992 | 123 | 153 | — | |||||||||||||||||
CP Energy Services Inc. | 76,002 | — | — | (3,786 | ) | 72,216 | — | — | — | — | |||||||||||||||||
Credit Central Loan Company, LLC | 52,254 | 10,826 | (403 | ) | 1,758 | 64,435 | 10,873 | — | — | — | |||||||||||||||||
Echelon Aviation LLC | 60,821 | 18,875 | (6,800 | ) | (1,578 | ) | 71,318 | 5,734 | 200 | 1,121 | — | ||||||||||||||||
Edmentum Ultimate Holdings, LLC | 44,346 | 9,892 | (6,424 | ) | (919 | ) | 46,895 | 1,726 | — | — | — | ||||||||||||||||
First Tower Finance Company LLC | 352,666 | 15,577 | (2,220 | ) | (435 | ) | 365,588 | 51,116 | — | — | — | ||||||||||||||||
Freedom Marine Solutions, LLC | 26,618 | 1,801 | — | (4,425 | ) | 23,994 | — | — | — | — | |||||||||||||||||
MITY, Inc. | 54,049 | 16,000 | — | 6,463 | 76,512 | 6,848 | 468 | 886 | 16 | ||||||||||||||||||
National Property REIT Corp. | 843,933 | 237,851 | (174,931 | ) | 80,451 | 987,304 | 84,777 | — | 9,186 | — | |||||||||||||||||
Nationwide Loan Company LLC | 35,813 | 2,104 | — | (972 | ) | 36,945 | 3,406 | 4,310 | — | — | |||||||||||||||||
NMMB, Inc. | 10,007 | — | (100 | ) | 10,918 | 20,825 | 1,518 | — | — | — | |||||||||||||||||
R-V Industries, Inc. | 36,877 | — | 96 | (4,295 | ) | 32,678 | 2,877 | 149 | 124 | 172 | |||||||||||||||||
SB Forging II | 7,312 | 8,750 | (69,125 | ) | 55,003 | 1,940 | — | — | — | (66,103 | ) | ||||||||||||||||
United States Environmental Services, LLC | 40,286 | 2,599 | (154 | ) | (30,214 | ) | 12,517 | — | — | — | — | ||||||||||||||||
Valley Electric Company, Inc. | 31,091 | 1,821 | — | (403 | ) | 32,509 | 5,629 | — | — | — | |||||||||||||||||
Wolf Energy, LLC | 678 | 22,145 | (15,344 | ) | (1,802 | ) | 5,677 | — | — | — | — | ||||||||||||||||
Total | $ | 1,752,449 | $ | 348,241 | $ | (275,732 | ) | $ | 86,817 | $ | 1,911,775 | $ | 177,496 | $ | 5,250 | $ | 11,470 | $ | (65,915 | ) |
(50) | As defined in the 1940 Act, we are deemed to be an “Affiliated company” of these portfolio companies because we own more than 5% of the portfolio company’s outstanding voting securities. Transactions during the year ended June 30, 2017 with these affiliated investments were as follows: |
Portfolio Company | Fair Value at June 30, 2016 | Gross Additions (Cost)* | Gross Reductions (Cost)** | Net unrealized gains (losses) | Fair Value at June 30, 2017 | Interest income | Dividend income | Other income | Net realized gains (losses) | ||||||||||||||||||
BNN Holdings Corp. | $ | 2,842 | $ | — | $ | (2,227 | ) | $ | (615 | ) | $ | — | $ | — | $ | — | $ | — | $ | 137 | |||||||
Nixon, Inc.*** | — | 1,552 | — | (1,552 | ) | — | — | — | — | — | |||||||||||||||||
Targus International LLC | 8,478 | 231 | — | 2,720 | 11,429 | 297 | — | — | — | ||||||||||||||||||
Total | $ | 11,320 | $ | 1,783 | $ | (2,227 | ) | $ | 553 | $ | 11,429 | $ | 297 | $ | — | $ | — | $ | 137 |
(51) | BAART Programs, Inc. and MedMark Services, Inc. are joint borrowers of the second lien term loan. |
(52) | Prospect exercised its rights and remedies under its loan documents to exercise the shareholder voting rights in respect of the stock of InterDent, Inc. (“InterDent”) and to appoint a new Board of Directors of InterDent. As a result, Prospect’s investment in InterDent is classified as a control investment as of June 30, 2018. |
(53) | This investment is in the debt class of a CLO security. The all-in interest rate has not been determined as the investment is unsettled as of June 30, 2018. |
i. | fair value of investment securities, other assets and liabilities—at the spot exchange rate on the last business day of the period; and |
ii. | purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such investment transactions, income or expenses. |
1. | Each portfolio company or investment is reviewed by our investment professionals with independent valuation firms engaged by our Board of Directors. |
2. | The independent valuation firms prepare independent valuations for each investment based on their own independent assessments and issue their report. |
3. | The Audit Committee of our Board of Directors reviews and discusses with the independent valuation firms the valuation reports, and then makes a recommendation to the Board of Directors of the value for each investment. |
4. | The Board of Directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm and the Audit Committee. |
June 30, 2018 | June 30, 2017 | ||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||
Revolving Line of Credit | $ | 38,659 | $ | 38,559 | $ | 27,409 | $ | 27,409 | |||||||
Senior Secured Debt | 2,602,018 | 2,481,353 | 2,940,163 | 2,798,796 | |||||||||||
Subordinated Secured Debt | 1,318,028 | 1,260,525 | 1,160,019 | 1,107,040 | |||||||||||
Subordinated Unsecured Debt | 38,548 | 32,945 | 37,934 | 44,434 | |||||||||||
Small Business Loans | 30 | 17 | 8,434 | 7,964 | |||||||||||
CLO Debt | 6,159 | 6,159 | — | — | |||||||||||
CLO Residual Interest | 1,096,768 | 954,035 | 1,150,006 | 1,079,712 | |||||||||||
Equity | 731,248 | 953,686 | 657,591 | 772,950 | |||||||||||
Total Investments | $ | 5,831,458 | $ | 5,727,279 | $ | 5,981,556 | $ | 5,838,305 |
• | Revolving Line of Credit includes our investments in delayed draw term loans. |
• | Senior Secured Debt includes investments listed on the SOI such as senior secured term loans, senior term loans, secured promissory notes, senior demand notes, and first lien term loans. |
• | Subordinated Secured Debt includes investments listed on the SOI such as subordinated secured term loans, subordinated term loans, senior subordinated notes, and second lien term loans. |
• | Subordinated Unsecured Debt includes investments listed on the SOI such as subordinated unsecured notes and senior unsecured notes. |
• | Small Business Loans includes our investments in SME whole loans purchased from OnDeck. |
• | CLO Debt includes our investments in the “debt” class of security of CLO funds. |
• | CLO Residual Interest includes our investments in the “equity” security class of CLO funds such as income notes, preference shares, and subordinated notes. |
• | Equity, unless specifically stated otherwise, includes our investments in preferred stock, common stock, membership interests, net profits interests, net operating income interests, net revenue interests, overriding royalty interests, escrows receivable, and warrants. |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Revolving Line of Credit | $ | — | $ | — | $ | 38,559 | $ | 38,559 | |||||||
Senior Secured Debt | — | — | 2,481,353 | 2,481,353 | |||||||||||
Subordinated Secured Debt | — | — | 1,260,525 | 1,260,525 | |||||||||||
Subordinated Unsecured Debt | — | — | 32,945 | 32,945 | |||||||||||
Small Business Loans | — | — | 17 | 17 | |||||||||||
CLO Debt | — | — | 6,159 | 6,159 | |||||||||||
CLO Residual Interest | — | — | 954,035 | 954,035 | |||||||||||
Equity | — | — | 953,686 | 953,686 | |||||||||||
Total Investments | $ | — | $ | — | $ | 5,727,279 | $ | 5,727,279 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Revolving Line of Credit | $ | — | $ | — | $ | 27,409 | $ | 27,409 | |||||||
Senior Secured Debt | — | — | 2,798,796 | 2,798,796 | |||||||||||
Subordinated Secured Debt | — | — | 1,107,040 | 1,107,040 | |||||||||||
Subordinated Unsecured Debt | — | — | 44,434 | 44,434 | |||||||||||
Small Business Loans | — | — | 7,964 | 7,964 | |||||||||||
CLO Residual Interest | — | — | 1,079,712 | 1,079,712 | |||||||||||
Equity | — | — | 772,950 | 772,950 | |||||||||||
Total Investments | $ | — | $ | — | $ | 5,838,305 | $ | 5,838,305 |
Fair Value Measurements Using Unobservable Inputs (Level 3) | |||||||||||||||
Control Investments | Affiliate Investments | Non-Control/ Non-Affiliate Investments | Total | ||||||||||||
Fair value as of June 30, 2017 | $ | 1,911,775 | $ | 11,429 | $ | 3,915,101 | $ | 5,838,305 | |||||||
Net realized gains (losses) on investments | 13 | (13,351 | ) | (6,036 | ) | (19,374 | ) | ||||||||
Net change in unrealized gains (losses) | 55,670 | 25,671 | (42,270 | ) | 39,071 | ||||||||||
Net realized and unrealized gains (losses) | 55,683 | 12,320 | (48,306 | ) | 19,697 | ||||||||||
Purchases of portfolio investments | 212,531 | 3,588 | 1,505,134 | 1,721,253 | |||||||||||
Payment-in-kind interest | 6,164 | 583 | 2,657 | 9,404 | |||||||||||
Accretion (amortization) of discounts and premiums, net | 2,240 | — | (33,245 | ) | (31,005 | ) | |||||||||
Repayments and sales of portfolio investments | (144,405 | ) | (846 | ) | (1,685,124 | ) | (1,830,375 | ) | |||||||
Transfers within Level 3(1) | 360,338 | 31,362 | (391,700 | ) | — | ||||||||||
Transfers in (out) of Level 3(1) | — | — | — | — | |||||||||||
Fair value as of June 30, 2018 | $ | 2,404,326 | $ | 58,436 | $ | 3,264,517 | $ | 5,727,279 |
Revolving Line of Credit | Senior Secured Debt | Subordinated Secured Debt | Subordinated Unsecured Debt | Small Business Loans | CLO Debt | CLO Residual Interest | Equity | Total | |||||||||||||||||||||||||||
Fair value as of June 30, 2017 | $ | 27,409 | $ | 2,798,796 | $ | 1,107,040 | $ | 44,434 | $ | 7,964 | $ | — | $ | 1,079,712 | $ | 772,950 | $ | 5,838,305 | |||||||||||||||||
Net realized (losses) gains on investments | — | (16,795 | ) | — | 13 | (357 | ) | — | (2,275 | ) | 40 | (19,374 | ) | ||||||||||||||||||||||
Net change in unrealized gains (losses) | (100 | ) | 20,701 | (4,524 | ) | (12,103 | ) | 456 | — | (72,439 | ) | 107,080 | 39,071 | ||||||||||||||||||||||
Net realized and unrealized (losses) gains | (100 | ) | 3,906 | (4,524 | ) | (12,090 | ) | 99 | — | (74,714 | ) | 107,120 | 19,697 | ||||||||||||||||||||||
Purchases of portfolio investments | 19,308 | 1,138,304 | 365,845 | — | 7,552 | 6,159 | 48,187 | 135,898 | 1,721,253 | ||||||||||||||||||||||||||
Payment-in-kind interest | — | 5,360 | 3,429 | 615 | — | — | — | — | 9,404 | ||||||||||||||||||||||||||
Accretion (amortization) of discounts and premiums | — | 3,307 | 5,756 | — | — | — | (40,068 | ) | — | (31,005 | ) | ||||||||||||||||||||||||
Repayments and sales of portfolio investments | (8,058 | ) | (1,511,024 | ) | (217,021 | ) | (14 | ) | (15,598 | ) | — | (59,082 | ) | (19,578 | ) | (1,830,375 | ) | ||||||||||||||||||
Transfers within Level 3(1) | — | 42,704 | — | — | — | — | — | (42,704 | ) | — | |||||||||||||||||||||||||
Transfers in (out) of Level 3(1) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Fair value as of June 30, 2018 | $ | 38,559 | $ | 2,481,353 | $ | 1,260,525 | $ | 32,945 | $ | 17 | $ | 6,159 | $ | 954,035 | $ | 953,686 | $ | 5,727,279 |
(1) | Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. |
Fair Value Measurements Using Unobservable Inputs (Level 3) | |||||||||||||||
Control Investments | Affiliate Investments | Non-Control/ Non-Affiliate Investments | Total | ||||||||||||
Fair value as of June 30, 2016 | $ | 1,752,449 | $ | 11,320 | $ | 4,133,939 | $ | 5,897,708 | |||||||
Net realized (losses) gains on investments | (65,915 | ) | 137 | (32,625 | ) | (98,403 | ) | ||||||||
Net change in unrealized gains (losses) | 86,817 | 553 | (37,229 | ) | 50,141 | ||||||||||
Net realized and unrealized gains (losses) | 20,902 | 690 | (69,854 | ) | (48,262 | ) | |||||||||
Purchases of portfolio investments | 310,922 | — | 1,160,740 | 1,471,662 | |||||||||||
Payment-in-kind interest | 14,252 | 231 | 3,325 | 17,808 | |||||||||||
Accretion (amortization) of discounts and premiums, net | 922 | — | (89,749 | ) | (88,827 | ) | |||||||||
Repayments and sales of portfolio investments | (209,817 | ) | (2,364 | ) | (1,199,603 | ) | (1,411,784 | ) | |||||||
Transfers within Level 3(1) | 22,145 | 1,552 | (23,697 | ) | — | ||||||||||
Transfers in (out) of Level 3(1) | — | — | — | — | |||||||||||
Fair value as of June 30, 2017 | $ | 1,911,775 | $ | 11,429 | $ | 3,915,101 | $ | 5,838,305 |
Revolving Line of Credit | Senior Secured Debt | Subordinated Secured Debt | Subordinated Unsecured Debt | Small Business Loans | CLO Debt | CLO Residual Interest | Equity | Total | |||||||||||||||||||||||||||
Fair value as of June 30, 2016 | $ | 13,274 | $ | 2,941,722 | $ | 1,209,604 | $ | 68,358 | $ | 14,215 | $ | — | $ | 1,009,696 | $ | 640,839 | $ | 5,897,708 | |||||||||||||||||
Net realized (losses) gains on investments | — | (59,730 | ) | (382 | ) | 6 | (3,013 | ) | — | (17,239 | ) | (18,045 | ) | (98,403 | ) | ||||||||||||||||||||
Net change in unrealized (losses) gains | — | (10,245 | ) | (33,990 | ) | 14,020 | (83 | ) | — | 3,550 | 76,889 | 50,141 | |||||||||||||||||||||||
Net realized and unrealized (losses) gains | — | (69,975 | ) | (34,372 | ) | 14,026 | (3,096 | ) | — | (13,689 | ) | 58,844 | (48,262 | ) | |||||||||||||||||||||
Purchases of portfolio investments | 21,559 | 762,505 | 378,793 | — | 51,802 | — | 178,452 | 78,551 | 1,471,662 | ||||||||||||||||||||||||||
Payment-in-kind interest | — | 5,127 | 10,624 | 2,057 | — | — | — | — | 17,808 | ||||||||||||||||||||||||||
Accretion (amortization) of discounts and premiums | — | 531 | 5,389 | — | — | — | (94,747 | ) | — | (88,827 | ) | ||||||||||||||||||||||||
Repayments and sales of portfolio investments | (7,424 | ) | (763,969 | ) | (462,998 | ) | (40,007 | ) | (54,957 | ) | — | — | (82,429 | ) | (1,411,784 | ) | |||||||||||||||||||
Transfers within Level 3(1) | — | (77,145 | ) | — | — | — | — | — | 77,145 | — | |||||||||||||||||||||||||
Transfers in (out) of Level 3(1) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Fair value as of June 30, 2017 | $ | 27,409 | $ | 2,798,796 | $ | 1,107,040 | $ | 44,434 | $ | 7,964 | $ | — | $ | 1,079,712 | $ | 772,950 | $ | 5,838,305 |
(1) | Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. |
Unobservable Input | ||||||||||||
Asset Category | Fair Value | Primary Valuation Approach or Technique | Input | Range | Weighted Average | |||||||
Senior Secured Debt | $ | 1,409,584 | Discounted Cash Flow (Yield analysis) | Market yield | 7.0% - 21.2% | 11.3% | ||||||
Senior Secured Debt | 361,720 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 4.0x - 10.3x | 8.3x | |||||||
Senior Secured Debt | 181,339 | Enterprise Value Waterfall (Market approach) | Revenue multiple | 0.3x - 1.6x | 1.4x | |||||||
Senior Secured Debt | 47,099 | Enterprise Value Waterfall (Discounted cash flow) | Discount rate | 7.5% - 16.1% | 10.7% | |||||||
Senior Secured Debt | 787 | Liquidation Analysis | N/A | N/A | N/A | |||||||
Senior Secured Debt (1) | 226,180 | Enterprise Value Waterfall | Loss-adjusted discount rate | 3.0% - 14.2% | 11.0% | |||||||
Senior Secured Debt (2) | 293,203 | Enterprise Value Waterfall (NAV Analysis) | Capitalization Rate | 3.3% - 8.7% | 6.0% | |||||||
Senior Secured Debt (2) | — | Discounted Cash Flow | Discount rate | 6.5% - 7.5% | 7.0% | |||||||
Subordinated Secured Debt | 830,766 | Discounted Cash Flow (Yield analysis) | Market yield | 7.6% - 22.5% | 11.7% | |||||||
Subordinated Secured Debt | 28,622 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 6.5x - 7.5x | 7.0x | |||||||
Subordinated Secured Debt | 58,806 | Enterprise Value Waterfall (Market approach) | Revenue multiple | 0.3x - 0.4x | 0.4x | |||||||
Subordinated Secured Debt (3) | 342,331 | Enterprise Value Waterfall (Market approach) | Book value multiple | 0.8x - 3.1x | 2.5x | |||||||
Subordinated Secured Debt (3) | — | Enterprise Value Waterfall (Market approach) | Earnings multiple | 7.5x - 13.0x | 11.9x | |||||||
Subordinated Unsecured Debt | 32,945 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 5.8x - 11.5x | 9.7% | |||||||
Small Business Loans (4) | 17 | Discounted Cash Flow | Loss-adjusted discount rate | 13.0% - 24.3% | 15.5% | |||||||
CLO Interests | 960,194 | Discounted Cash Flow | Discount rate (6) | 2.33% - 24.28% | 17.24% | |||||||
Preferred Equity | 73,792 | Enterprise Value Waterfall (Market approach) | EBITDA multiple | 4.0x - 9.0x | 7.9x | |||||||
Preferred Equity | 2,194 | Liquidation Analysis | N/A | N/A | N/A | |||||||
Common Equity/Interests/Warrants | 81,753 | Enterprise value waterfall (Market approach) | EBITDA multiple | 5.0x - 9.0x | 6.8x | |||||||
Common Equity/Interests/Warrants (1) | 16,881 | Enterprise value waterfall | Loss-adjusted discount rate | 3.0% - 14.2% | 11.0% | |||||||
Common Equity/Interests/Warrants (2) | 419,224 | Enterprise value waterfall (NAV analysis) | Capitalization Rate | 3.3% - 8.7% | 6.0% | |||||||
Common Equity/Interests/Warrants (2) | — | Discounted cash flow | Discount rate | 6.5% - 7.5% | 7.0% | |||||||
Common Equity/Interests/Warrants (3) | 209,583 | Enterprise value waterfall (Market approach) | Book value multiple | 0.8x - 3.1x | 2.4x | |||||||
Common Equity/Interests/Warrants (3) | — | Enterprise value waterfall (Market approach) | Earnings multiple | 7.5x - 13.0x | 11.9x | |||||||
Common Equity/Interests/Warrants (5) | 99,488 | Discounted cash flow | Discount rate | 6.5% - 7.5% | 7.0% | |||||||
Common Equity/Interests/Warrants | 36,805 | Discounted cash flow | Discount rate | 7.5% - 15.5% | 8.8% | |||||||
Common Equity/Interests/Warrants | 13,049 | Liquidation analysis | N/A | N/A | N/A | |||||||
Escrow Receivable | 917 | Discounted cash flow | Discount rate | 7.3% - 8.4% | 7.9% | |||||||
Total Level 3 Investments | $ | 5,727,279 |
(1) | Represents an investment in a Real Estate Investment subsidiary. The Enterprise Value analysis includes the fair value of our investments in such indirect subsidiary’s consumer loans purchased from online consumer lending platforms, which are valued using a discounted cash flow valuation technique. The key unobservable input to the discounted cash flow analysis is noted above. In addition, the valuation also used projected loss rates as an unobservable input ranging from 0.0%-20.7%, with a weighted average of 4.2%. |
(2) | Represents our REIT investments. EV waterfall methodology uses both the net asset value analysis and discounted cash flow technique, which are weighted equally (50%). |
(3) | Represents investments in consumer finance subsidiaries. The enterprise value waterfall methodology utilizes book value and earnings multiples, as noted above. In addition, the valuation of certain consumer finance companies utilizes the discounted cash flow technique whereby the significant unobservable input is the discount rate. For these companies each valuation technique (book value multiple, earnings multiple and discount rate) is weighted equally. For these companies the discount rate ranged from 13.5% to 15.5% with a weighted average of 14.2%. |
(4) | Includes our investments in small business whole loans purchased from OnDeck. Valuation also used projected loss rates as an unobservable input ranging from 0.00%-0.06%, with a weighted average of 0.01%. |
(5) | Represents net operating income interests in our REIT investments. |
(6) | Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm. |
Unobservable Input | ||||||||||||
Asset Category | Fair Value | Primary Valuation Approach or Technique | Input | Range | Weighted Average | |||||||
Senior Secured Debt | $ | 1,977,660 | Discounted Cash Flow (Yield analysis) | Market Yield | 5.1%-27.0% | 10.7% | ||||||
Senior Secured Debt | 211,856 | Enterprise Value Waterfall (Market approach) | EBITDA Multiple | 4.0x-9.0x | 6.7x | |||||||
Senior Secured Debt | 27,479 | Enterprise Value Waterfall (Market approach) | Revenue Multiple | 0.3x-0.6x | 0.4x | |||||||
Senior Secured Debt | 47,099 | Enterprise Value Waterfall (Discounted cash flow) | Discount Rate | 7.3%-15.9% | 11.6% | |||||||
Senior Secured Debt | 1,630 | Liquidation Analysis | N/A | N/A | N/A | |||||||
Senior Secured Debt (1) | 269,166 | Enterprise Value Waterfall | Loss-adjusted discount rate | 3.0%-14.2% | 10.6% | |||||||
Senior Secured Debt (2) | 291,315 | Enterprise Value Waterfall (NAV Analysis) | Capitalization Rate | 3.4%-8.0% | 6.1% | |||||||
Senior Secured Debt (2) | Discounted Cash Flow | Discount Rate | 6.5%-7.5% | 7.0% | ||||||||
Subordinated Secured Debt | 665,405 | Discounted Cash Flow (Yield analysis) | Market Yield | 5.9%-27.0% | 11.4% | |||||||
Subordinated Secured Debt | 111,847 | Enterprise Value Waterfall (Market approach) | EBITDA Multiple | 6.3x-8.0x | 7.3x | |||||||
Subordinated Secured Debt (3) | 329,788 | Enterprise Value Waterfall (Market approach) | Book Value Multiple | 1.2x-2.8x | 2.4x | |||||||
Subordinated Secured Debt (3) | Enterprise Value Waterfall (Market approach) | Earnings Multiple | 7.5x-12.0x | 11.0x | ||||||||
Subordinated Unsecured Debt | 44,434 | Enterprise Value Waterfall (Market approach) | EBITDA Multiple | 5.8x-8.5x | 7.7x | |||||||
Small Business Loans (4) | 7,964 | Discounted Cash Flow | Loss-adjusted Discount Rate | 3.0%-25.9% | 25.9% | |||||||
CLO Residual Interest | 1,079,712 | Discounted Cash Flow | Discount Rate | 12.0%-21.9% | 15.7% | |||||||
Preferred Equity | 10,992 | Enterprise Value Waterfall (Market approach) | EBITDA Multiple | 4.0x-9.0x | 4.8x | |||||||
Preferred Equity | 72,216 | Enterprise Value Waterfall (Market approach) | Revenue Multiple | 2.3x-2.8x | 2.6x | |||||||
Common Equity/Interests/Warrants | 46,373 | Enterprise Value Waterfall (Market approach) | EBITDA Multiple | 4.0x-8.5x | 6.0x | |||||||
Common Equity/Interests/Warrants | 22,671 | Enterprise Value Waterfall (Market approach) | Revenue Multiple | 0.3x-2.8x | 1.2x | |||||||
Common Equity/Interests/Warrants (1) | 93,801 | Enterprise Value Waterfall | Loss-adjusted discount rate | 3.0%-14.2% | 10.6% | |||||||
Common Equity/Interests/Warrants (2) | 244,245 | Enterprise Value Waterfall (NAV analysis) | Capitalization Rate | 3.4%-8.0% | 6.1% | |||||||
Common Equity/Interests/Warrants (2) | Discounted Cash Flow | Discount Rate | 6.5%-7.5% | 0.07 | ||||||||
Common Equity/Interests/Warrants (2) | 134,481 | Enterprise Value Waterfall (Market approach) | Book Value Multiple | 1.2x-2.8x | 2.3x | |||||||
Common Equity/Interests/Warrants (2) | Enterprise Value Waterfall (Market approach) | Earnings Multiple | 7.5x-12.0x | 10.8x | ||||||||
Common Equity/Interests/Warrants (5) | 88,777 | Discounted Cash Flow | Discount Rate | 6.5%-7.5% | 7.0% | |||||||
Common Equity/Interests/Warrants | 28,858 | Discounted Cash Flow | Discount Rate | 6.4%-18.0% | 11.8% | |||||||
Common Equity/Interests/Warrants | 29,672 | Liquidation Analysis | N/A | N/A | N/A | |||||||
Escrow Receivable | 864 | Discounted Cash Flow | Discount Rate | 6.4%-7.5% | 7.0% | |||||||
Total Level 3 Investments | $ | 5,838,305 |
(1) | Represents an investment in a subsidiary of our controlled investment NPRC. The Enterprise Value Waterfall analysis of NPRC includes the fair value of the investments in such indirect subsidiary’s consumer loans purchased from online consumer lending platforms, which are valued using a discounted cash flow valuation technique. The key unobservable input to the discounted cash flow analysis is noted in the table. In addition, the valuation also used projected loss rates as an unobservable input ranging from 0.16-18.46%, with a weighted average of 8.57%. |
(2) | Represents our REIT investments. EV waterfall methodology uses both the net asset value analysis and discounted cash flow analysis, which are weighted equally (50%). |
(3) | Represents investments in consumer finance subsidiaries. The enterprise value waterfall methodology utilizes book value and earnings multiples, as noted above. In addition, the valuation of certain consumer finance companies utilizes the discounted cash flow technique whereby the significant unobservable input is the discount rate. For these companies each valuation technique (book value multiple, earnings multiple and discount rate) is weighted equally. For these companies the discount rate ranged from 13.5% to 18.0% with a weighted average of 14.7%. |
(4) | Includes our investments in small business whole loans purchased from OnDeck. Valuation also used projected loss rates as an unobservable input ranging from 0.01%-1.16%, with a weighted average of 0.88%. |
(5) | Represents net operating income interests in our REIT investments. |
Loan Type | Outstanding Principal Balance | Fair Value | Weighted Average Interest Rate* | |||||||
Super Prime | $ | 20,714 | $ | 20,063 | 13.8% | |||||
Prime | 63,565 | 60,554 | 17.9% | |||||||
Near Prime | 241,907 | 224,652 | 31.1% |
No. | Property Name | City | Acquisition Date | Purchase Price | Mortgage Outstanding | |||||||||
1 | Filet of Chicken | Forest Park, GA | 10/24/2012 | $ | 7,400 | $ | — | |||||||
2 | 5100 Live Oaks Blvd, LLC | Tampa, FL | 1/17/2013 | 63,400 | 46,426 | |||||||||
3 | Lofton Place, LLC | Tampa, FL | 4/30/2013 | 26,000 | 20,273 | |||||||||
4 | Arlington Park Marietta, LLC | Marietta, GA | 5/8/2013 | 14,850 | 9,650 | |||||||||
5 | NPRC Carroll Resort, LLC | Pembroke Pines, FL | 6/24/2013 | 225,000 | 175,885 | |||||||||
6 | Cordova Regency, LLC | Pensacola, FL | 11/15/2013 | 13,750 | 11,375 | |||||||||
7 | Crestview at Oakleigh, LLC | Pensacola, FL | 11/15/2013 | 17,500 | 13,845 | |||||||||
8 | Inverness Lakes, LLC | Mobile, AL | 11/15/2013 | 29,600 | 24,700 | |||||||||
9 | Kings Mill Pensacola, LLC | Pensacola, FL | 11/15/2013 | 20,750 | 17,550 | |||||||||
10 | Plantations at Pine Lake, LLC | Tallahassee, FL | 11/15/2013 | 18,000 | 14,092 | |||||||||
11 | Verandas at Rocky Ridge, LLC | Birmingham, AL | 11/15/2013 | 15,600 | 10,205 | |||||||||
12 | Matthews Reserve II, LLC | Matthews, NC | 11/19/2013 | 22,063 | 19,765 | |||||||||
13 | City West Apartments II, LLC | Orlando, FL | 11/19/2013 | 23,562 | 23,084 | |||||||||
14 | Vinings Corner II, LLC | Smyrna, GA | 11/19/2013 | 35,691 | 32,649 | |||||||||
15 | Atlanta Eastwood Village LLC | Stockbridge, GA | 12/12/2013 | 25,957 | 22,546 |
No. | Property Name | City | Acquisition Date | Purchase Price | Mortgage Outstanding | |||||||||
16 | Atlanta Monterey Village LLC | Jonesboro, GA | 12/12/2013 | 11,501 | 10,969 | |||||||||
17 | Atlanta Hidden Creek LLC | Morrow, GA | 12/12/2013 | 5,098 | 4,696 | |||||||||
18 | Atlanta Meadow Springs LLC | College Park, GA | 12/12/2013 | 13,116 | 12,914 | |||||||||
19 | Atlanta Meadow View LLC | College Park, GA | 12/12/2013 | 14,354 | 12,968 | |||||||||
20 | Atlanta Peachtree Landing LLC | Fairburn, GA | 12/12/2013 | 17,224 | 15,361 | |||||||||
21 | APH Carroll Bartram Park, LLC | Jacksonville, FL | 12/31/2013 | 38,000 | 27,157 | |||||||||
22 | Crestview at Cordova, LLC | Pensacola, FL | 1/17/2014 | 8,500 | 7,785 | |||||||||
23 | APH Carroll Atlantic Beach, LLC | Atlantic Beach, FL | 1/31/2014 | 13,025 | 8,443 | |||||||||
24 | Taco Bell, OK | Yukon, OK | 6/4/2014 | 1,719 | — | |||||||||
25 | Taco Bell, MO | Marshall, MO | 6/4/2014 | 1,405 | — | |||||||||
26 | 23 Mile Road Self Storage, LLC | Chesterfield, MI | 8/19/2014 | 5,804 | 4,350 | |||||||||
27 | 36th Street Self Storage, LLC | Wyoming, MI | 8/19/2014 | 4,800 | 3,600 | |||||||||
28 | Ball Avenue Self Storage, LLC | Grand Rapids, MI | 8/19/2014 | 7,281 | 5,460 | |||||||||
29 | Ford Road Self Storage, LLC | Westland, MI | 8/29/2014 | 4,642 | 3,480 | |||||||||
30 | Ann Arbor Kalamazoo Self Storage, LLC | Ann Arbor, MI | 8/29/2014 | 4,458 | 3,345 | |||||||||
31 | Ann Arbor Kalamazoo Self Storage, LLC | Ann Arbor, MI | 8/29/2014 | 8,927 | 6,695 | |||||||||
32 | Ann Arbor Kalamazoo Self Storage, LLC | Kalamazoo, MI | 8/29/2014 | 2,363 | 1,775 | |||||||||
33 | Canterbury Green Apartments Holdings LLC | Fort Wayne, IN | 9/29/2014 | 85,500 | 74,046 | |||||||||
34 | Abbie Lakes OH Partners, LLC | Canal Winchester, OH | 9/30/2014 | 12,600 | 13,055 | |||||||||
35 | Kengary Way OH Partners, LLC | Reynoldsburg, OH | 9/30/2014 | 11,500 | 13,502 | |||||||||
36 | Lakeview Trail OH Partners, LLC | Canal Winchester, OH | 9/30/2014 | 26,500 | 23,256 | |||||||||
37 | Lakepoint OH Partners, LLC | Pickerington, OH | 9/30/2014 | 11,000 | 14,480 | |||||||||
38 | Sunbury OH Partners, LLC | Columbus, OH | 9/30/2014 | 13,000 | 14,115 | |||||||||
39 | Heatherbridge OH Partners, LLC | Blacklick, OH | 9/30/2014 | 18,416 | 18,328 | |||||||||
40 | Jefferson Chase OH Partners, LLC | Blacklick, OH | 9/30/2014 | 13,551 | 17,200 | |||||||||
41 | Goldenstrand OH Partners, LLC | Hilliard, OH | 10/29/2014 | 7,810 | 9,600 | |||||||||
42 | Jolly Road Self Storage, LLC | Okemos, MI | 1/16/2015 | 7,492 | 5,620 | |||||||||
43 | Eaton Rapids Road Self Storage, LLC | Lansing West, MI | 1/16/2015 | 1,741 | 1,305 | |||||||||
44 | Haggerty Road Self Storage, LLC | Novi, MI | 1/16/2015 | 6,700 | 5,025 | |||||||||
45 | Waldon Road Self Storage, LLC | Lake Orion, MI | 1/16/2015 | 6,965 | 5,225 | |||||||||
46 | Tyler Road Self Storage, LLC | Ypsilanti, MI | 1/16/2015 | 3,507 | 2,630 | |||||||||
47 | SSIL I, LLC | Aurora, IL | 11/5/2015 | 34,500 | 26,450 | |||||||||
48 | Vesper Tuscaloosa, LLC | Tuscaloosa, AL | 9/28/2016 | 54,500 | 43,120 | |||||||||
49 | Vesper Iowa City, LLC | Iowa City, IA | 9/28/2016 | 32,750 | 24,825 | |||||||||
50 | Vesper Corpus Christi, LLC | Corpus Christi, TX | 9/28/2016 | 14,250 | 10,800 | |||||||||
51 | Vesper Campus Quarters, LLC | Corpus Christi, TX | 9/28/2016 | 18,350 | 14,175 | |||||||||
52 | Vesper College Station, LLC | College Station, TX | 9/28/2016 | 41,500 | 32,057 | |||||||||
53 | Vesper Kennesaw, LLC | Kennesaw, GA | 9/28/2016 | 57,900 | 48,668 | |||||||||
54 | Vesper Statesboro, LLC | Statesboro, GA | 9/28/2016 | 7,500 | 6,076 | |||||||||
55 | Vesper Manhattan KS, LLC | Manhattan, KS | 9/28/2016 | 23,250 | 15,145 | |||||||||
56 | JSIP Union Place, LLC | Franklin, MA | 12/7/2016 | 64,750 | 51,800 | |||||||||
57 | 9220 Old Lantern Way, LLC | Laurel, MD | 1/30/2017 | 187,250 | 153,580 | |||||||||
58 | 7915 Baymeadows Circle Owner, LLC | Jacksonville, FL | 10/31/2017 | 95,700 | 76,560 | |||||||||
59 | 8025 Baymeadows Circle Owner, LLC | Jacksonville, FL | 10/31/2017 | 15,300 | 12,240 | |||||||||
60 | 23275 Riverside Drive Owner, LLC | Southfield, MI | 11/8/2017 | 52,000 | 44,044 |
No. | Property Name | City | Acquisition Date | Purchase Price | Mortgage Outstanding | |||||||||
61 | 23741 Pond Road Owner, LLC | Southfield, MI | 11/8/2017 | 16,500 | 14,185 | |||||||||
62 | 150 Steeplechase Way Owner, LLC | Largo, MD | 1/10/2018 | 44,500 | 36,668 | |||||||||
63 | Laurel Pointe Holdings, LLC | Forest Park, GA | 5/9/2018 | 33,005 | 26,400 | |||||||||
64 | Bradford Ridge Holdings, LLC | Forest Park, GA | 5/9/2018 | 12,500 | 10,000 | |||||||||
65 | Olentangy Commons Owner LLC | Columbus, OH | 6/1/2018 | 113,000 | 92,876 | |||||||||
$ | 1,866,627 | $ | 1,528,099 |
Asset Test | Income Test | Investment Test | ||||
Greater than 10% but Less than 20% | Greater than 20% | Greater than 10% but Less than 20% | Greater than 20% | Greater than 10% but Less than 20% | Greater than 20% | |
Year Ended June 30, 2018 | - | NPRC | Arctic (1) | First Tower Finance NPRC | NPRC | - |
Year Ended June 30, 2017 | - | NPRC | USES | First Tower Finance NPRC | NPRC | - |
Year Ended June 30, 2016 | - | NPRC | First Tower Finance | NPRC | NPRC | - |
December 31, 2017 | |||
Balance Sheet Data | |||
Cash and cash equivalents | $ | 1,815 | |
Accounts receivable, net | 3,991 | ||
Property, plant and equipment, net | 28,438 | ||
Intangibles, including goodwill | 8,041 | ||
Other assets | 576 | ||
Notes payable, due to Prospect or Affiliate | 3,040 | ||
Other liabilities | 2,213 | ||
Total equity | (37,608 | ) |
Year Ended December 31, | |||
2017 | |||
Summary of Operations | |||
Total revenue | $ | 23,155 | |
Total expenses | 26,179 | ||
Net (loss) | $ | (3,024 | ) |
December 31, 2017 | December 31, 2016 | |||||
Balance Sheet Data | ||||||
Cash and cash equivalents | $ | 41 | $ | 168 | ||
Accounts receivable, net | 19,774 | 15,609 | ||||
Property, plant and equipment, net | 20,694 | 25,727 | ||||
Intangibles, including goodwill | 15,792 | 15,959 | ||||
Other assets | 3,053 | 1,700 | ||||
Notes payable, due to Prospect or Affiliate | 78,767 | 61,726 | ||||
Other liabilities | 14,888 | 6,469 | ||||
Total equity | (34,301 | ) | (9,032 | ) |
Year Ended December 31, | |||||||||
2017 | 2016 | 2015 | |||||||
Summary of Operations | |||||||||
Total revenue | $ | 72,355 | $ | 68,287 | $ | 106,248 | |||
Total expenses | 97,624 | 92,496 | 130,416 | ||||||
Net (loss) | $ | (25,269 | ) | $ | (24,209 | ) | $ | (24,168 | ) |
2019 Notes | 2020 Notes | 2022 Notes | ||||||||||
Initial conversion rate(1) | 79.7766 | 80.6647 | 100.2305 | |||||||||
Initial conversion price | $ | 12.54 | $ | 12.40 | $ | 9.98 | ||||||
Conversion rate at June 30, 2018(1)(2) | 79.8360 | 80.6670 | 100.2305 | |||||||||
Conversion price at June 30, 2018(2)(3) | $ | 12.53 | $ | 12.40 | $ | 9.98 | ||||||
Last conversion price calculation date | 12/21/2017 | 4/11/2018 | 4/11/2018 | |||||||||
Dividend threshold amount (per share)(4) | $ | 0.110025 | $ | 0.110525 | $ | 0.083330 |
(1) | Conversion rates denominated in shares of common stock per $1 principal amount of the Convertible Notes converted. |
(2) | Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date. |
(3) | The conversion price will increase only if the current monthly dividends (per share) exceed the dividend threshold amount (per share). |
(4) | The conversion rate is increased if monthly cash dividends paid to common shares exceed the monthly dividend threshold amount, subject to adjustment. Current dividend rates are at or below the minimum dividend threshold amount for further conversion rate adjustments for all bonds. |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | |||||||
5 | $ | 46,893 | 4.00% - 5.00% | 4.24 | % | July 15, 2022 - June 15, 2023 | |||||
7 | 4,684 | 4.75% - 5.25% | 5.06 | % | July 15, 2024 - June 15, 2025 | ||||||
8 | 24,720 | 4.50% - 5.25% | 4.65 | % | August 15, 2025 - May 15, 2026 | ||||||
$ | 76,297 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | |||||||
5 | $ | 138,882 | 4.75% - 5.50% | 5.08 | % | July 15, 2021 - June 15, 2022 | |||||
$ | 138,882 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | ||||||||
5 | $ | 228,835 | 4.00% – 5.50% | 4.92 | % | July 15, 2020 - June 15, 2023 | ||||||
5.2 | 4,440 | 4.63 | % | 4.63 | % | August 15, 2020 - September 15, 2020 | ||||||
5.3 | 2,636 | 4.63 | % | 4.63 | % | September 15, 2020 | ||||||
5.5 | 86,097 | 4.25% – 4.75% | 4.61 | % | May 15, 2020 - November 15, 2020 | |||||||
6 | 2,182 | 4.88 | % | 4.88 | % | April 15, 2021 - May 15, 2021 | ||||||
6.5 | 38,832 | 5.10% – 5.25% | 5.23 | % | December 15, 2021 - May 15, 2022 | |||||||
7 | 147,349 | 4.00% – 5.75% | 5.05 | % | January 15, 2020 - June 15, 2025 | |||||||
7.5 | 1,996 | 5.75 | % | 5.75 | % | February 15, 2021 | ||||||
8 | 24,720 | 4.50% – 5.25% | 4.65 | % | August 15, 2025 - May 15, 2026 | |||||||
10 | 37,424 | 5.34% – 7.00% | 6.19 | % | March 15, 2022 - December 15, 2025 | |||||||
12 | 2,978 | 6.00% | 6.00 | % | November 15, 2025 - December 15, 2025 | |||||||
15 | 17,163 | 5.25% – 6.00% | 5.35 | % | May 15, 2028 - November 15, 2028 | |||||||
18 | 20,677 | 4.13% – 6.25% | 5.55 | % | December 15, 2030 - August 15, 2031 | |||||||
20 | 4,120 | 5.75% – 6.00% | 5.89 | % | November 15, 2032 - October 15, 2033 | |||||||
25 | 33,139 | 6.25% – 6.50% | 6.39 | % | August 15, 2038 - May 15, 2039 | |||||||
30 | 108,336 | 5.50% – 6.75% | 6.24 | % | November 15, 2042 - October 15, 2043 | |||||||
$ | 760,924 |
Tenor at Origination (in years) | Principal Amount | Interest Rate Range | Weighted Average Interest Rate | Maturity Date Range | ||||||||
4 | $ | 39,038 | 3.75% - 4.00% | 3.92 | % | November 15, 2017 - May 15, 2018 | ||||||
5 | 354,805 | 4.25% - 5.50% | 5.00 | % | July 15, 2018 - June 15, 2022 | |||||||
5.2 | 4,440 | 4.63% | 4.63 | % | August 15, 2020 - September 15, 2020 | |||||||
5.3 | 2,686 | 4.63% | 4.63 | % | September 15, 2020 | |||||||
5.4 | 5,000 | 4.75 | % | 4.75 | % | August 15, 2019 | ||||||
5.5 | 109,068 | 4.25% - 5.00% | 4.67 | % | February 15, 2019 - November 15, 2020 | |||||||
6 | 2,182 | 4.88 | % | 4.88 | % | April 15, 2021 - May 15, 2021 | ||||||
6.5 | 40,702 | 5.10% - 5.50% | 5.24 | % | February 15, 2020 - May 15, 2022 | |||||||
7 | 191,356 | 4.00% - 6.55% | 5.38 | % | June 15, 2019 - December 15, 2022 | |||||||
7.5 | 1,996 | 5.75 | % | 5.75 | % | February 15, 2021 | ||||||
10 | 37,509 | 4.27% - 7.00% | 6.20 | % | March 15, 2022 - December 15, 2025 | |||||||
12 | 2,978 | 6.00 | % | 6.00 | % | November 15, 2025 - December 15, 2025 | ||||||
15 | 17,245 | 5.25% - 6.00% | 5.36 | % | May 15, 2028 - November 15, 2028 | |||||||
18 | 21,532 | 4.13% - 6.25% | 5.47 | % | December 15, 2030 - August 15, 2031 | |||||||
20 | 4,248 | 5.63% - 6.00% | 5.84 | % | November 15, 2032 - October 15, 2033 | |||||||
25 | 34,218 | 6.25% - 6.50% | 6.39 | % | August 15, 2038 - May 15, 2039 | |||||||
30 | 111,491 | 5.50% - 6.75% | 6.22 | % | November 15, 2042 - October 15, 2043 | |||||||
$ | 980,494 |
Principal Outstanding | Unamortized Discount & Debt Issuance Costs | Net Carrying Value | Fair Value (1) | Effective Interest Rate | ||||||||||||||||||
Revolving Credit Facility(2) | $ | 37,000 | $ | 2,032 | $ | 37,000 | (3 | ) | $ | 37,000 | 1ML+2.25% | (6 | ) | |||||||||
2019 Notes | 101,647 | 339 | 101,308 | 103,562 | (4 | ) | 6.51 | % | (7 | ) | ||||||||||||
2020 Notes | 392,000 | 4,270 | 387,730 | 392,529 | (4 | ) | 5.38 | % | (7 | ) | ||||||||||||
2022 Notes | 328,500 | 8,465 | 320,035 | 320,084 | (4 | ) | 5.69 | % | (7 | ) | ||||||||||||
Convertible Notes | 822,147 | 809,073 | 816,175 | |||||||||||||||||||
5.00% 2019 Notes | 153,536 | 456 | 153,080 | 155,483 | (4 | ) | 5.29 | % | (7 | ) | ||||||||||||
2023 Notes | 320,000 | 4,120 | 315,880 | 328,909 | (4 | ) | 6.09 | % | (7 | ) | ||||||||||||
2024 Notes | 199,281 | 4,559 | 194,722 | 202,151 | (4 | ) | 6.74 | % | (7 | ) | ||||||||||||
2028 Notes | 55,000 | 1,872 | 53,128 | 55,220 | (4 | ) | 6.72 | % | (7 | ) | ||||||||||||
Public Notes | 727,817 | 716,810 | 741,763 | |||||||||||||||||||
Prospect Capital InterNotes® | 760,924 | 11,998 | 748,926 | 779,400 | (5 | ) | 5.76 | % | (8 | ) | ||||||||||||
Total | $ | 2,347,888 | $ | 2,311,809 | $ | 2,374,338 |
(1) | As permitted by ASC 825-10-25, we have not elected to value our Revolving Credit Facility, Convertible Notes, Public Notes and Prospect Capital InterNotes® at fair value. The fair value of these debt obligations are categorized as Level 2 under ASC 820 as of June 30, 2018. |
(2) | The maximum draw amount of the Revolving Credit facility as of June 30, 2018 is $885,000. |
(3) | Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Note 2 for accounting policy details. |
(4) | We use available market quotes to estimate the fair value of the Convertible Notes and Public Notes. |
(5) | The fair value of Prospect Capital InterNotes® is estimated by discounting remaining payments using current Treasury rates plus spread based on observable market inputs. |
(6) | Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation. |
(7) | The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs. For the 2024 Notes, the rate presented is a combined effective interest rate of the 2024 Notes and 2024 Notes Follow-on Program. |
(8) | For the Prospect Capital InterNotes®, the rate presented is the weighted average effective interest rate. Interest expense and deferred debt issuance costs, which are amortized on a straight-line method over the stated life of the obligation, are weighted against the average year-to-date principal balance. |
Principal Outstanding | Unamortized Discount & Debt Issuance Costs | Net Carrying Value | Fair Value (1) | Effective Interest Rate | ||||||||||||||||||
Revolving Credit Facility(2) | $ | — | $ | 4,779 | $ | — | (3 | ) | $ | — | 1ML+2.25% | (6 | ) | |||||||||
2017 Notes | 50,734 | 77 | 50,657 | 51,184 | (4 | ) | 5.91 | % | (7 | ) | ||||||||||||
2018 Notes | 85,419 | 394 | 85,025 | 87,660 | (4 | ) | 6.42 | % | (7 | ) | ||||||||||||
2019 Notes | 200,000 | 1,846 | 198,154 | 206,614 | (4 | ) | 6.51 | % | (7 | ) | ||||||||||||
2020 Notes | 392,000 | 6,458 | 385,542 | 394,689 | (4 | ) | 5.38 | % | (7 | ) | ||||||||||||
2022 Notes | 225,000 | 6,737 | 218,263 | 223,875 | (4 | ) | 5.63 | % | (7 | ) | ||||||||||||
Convertible Notes | 953,153 | 937,641 | 964,022 | |||||||||||||||||||
5.00% 2019 Notes | 300,000 | 1,705 | 298,295 | 308,439 | (4 | ) | 5.29 | % | (7 | ) | ||||||||||||
2023 Notes | 250,000 | 4,087 | 245,913 | 258,045 | (4 | ) | 6.22 | % | (7 | ) | ||||||||||||
2024 Notes | 199,281 | 5,189 | 194,092 | 207,834 | (4 | ) | 6.72 | % | (7 | ) | ||||||||||||
Public Notes | 749,281 | 738,300 | 774,318 | |||||||||||||||||||
Prospect Capital InterNotes® | 980,494 | 14,240 | 966,254 | 1,003,852 | (5 | ) | 5.55 | % | (8 | ) | ||||||||||||
Total | $ | 2,682,928 | $ | 2,642,195 | $ | 2,742,192 |
(1) | As permitted by ASC 825-10-25, we have not elected to value our Revolving Credit Facility, Convertible Notes, Public Notes and Prospect Capital InterNotes® at fair value. The fair value of these debt obligations are categorized as Level 2 under ASC 820 as of June 30, 2017. |
(2) | The maximum draw amount of the Revolving Credit facility as of June 30, 2017 is $885,000. |
(3) | Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Note 2 for accounting policy details. |
(4) | We use available market quotes to estimate the fair value of the Convertible Notes and Public Notes. |
(5) | The fair value of Prospect Capital InterNotes® is estimated by discounting remaining payments using current Treasury rates plus spread based on observable market inputs. |
(6) | Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation. |
(7) | The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs. For the 2024 Notes, the rate presented is a combined effective interest rate of the 2024 Notes and 2024 Notes Follow-on Program. |
(8) | For the Prospect Capital InterNotes®, the rate presented is the weighted average effective interest rate. Interest expense and deferred debt issuance costs, which are amortized on a straight-line method over the stated life of the obligation, are weighted against the average year-to-date principal balance. |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | After 5 Years | |||||||||||||||
Revolving Credit Facility | $ | 37,000 | $ | — | $ | 37,000 | $ | — | $ | — | |||||||||
Convertible Notes | 822,147 | 101,647 | 392,000 | 328,500 | — | ||||||||||||||
Public Notes | 727,817 | — | 153,536 | 320,000 | 254,281 | ||||||||||||||
Prospect Capital InterNotes® | 760,924 | — | 276,484 | 246,525 | 237,915 | ||||||||||||||
Total Contractual Obligations | $ | 2,347,888 | $ | 101,647 | $ | 859,020 | $ | 895,025 | $ | 492,196 |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | After 5 Years | |||||||||||||||
Revolving Credit Facility | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Convertible Notes | 953,153 | 136,153 | 592,000 | — | 225,000 | ||||||||||||||
Public Notes | 749,281 | — | 300,000 | — | 449,281 | ||||||||||||||
Prospect Capital InterNotes® | 980,494 | 39,038 | 325,661 | 399,490 | 216,305 | ||||||||||||||
Total Contractual Obligations | $ | 2,682,928 | $ | 175,191 | $ | 1,217,661 | $ | 399,490 | $ | 890,586 |
Repurchases of Common Stock | Year Ended June 30, 2016 | ||
Dollar amount repurchased | $ | 34,140 | |
Shares Repurchased | 4,708,750 | ||
Weighted average price per share | $ | 7.25 | |
Weighted average discount to June 30, 2015 Net Asset Value | 30 | % |
Declaration Date | Record Date | Payment Date | Amount Per Share | Amount Distributed (in thousands) | ||||||||
5/9/2016 | 7/29/2016 | 8/18/2016 | $ | 0.083330 | $ | 29,783 | ||||||
5/9/2016 | 8/31/2016 | 9/22/2016 | 0.083330 | 29,809 | ||||||||
8/25/2016 | 9/30/2016 | 10/20/2016 | 0.083330 | 29,837 | ||||||||
8/25/2016 | 10/31/2016 | 11/17/2016 | 0.083330 | 29,863 | ||||||||
11/8/2016 | 11/30/2016 | 12/22/2016 | 0.083330 | 29,890 | ||||||||
11/8/2016 | 12/30/2016 | 1/19/2017 | 0.083330 | 29,915 | ||||||||
11/8/2016 | 1/31/2017 | 2/16/2017 | 0.083330 | 29,940 | ||||||||
2/7/2017 | 2/28/2017 | 3/23/2017 | 0.083330 | 29,963 | ||||||||
2/7/2017 | 3/31/2017 | 4/20/2017 | 0.083330 | 29,989 | ||||||||
2/7/2017 | 4/28/2017 | 5/18/2017 | 0.083330 | 29,994 | ||||||||
5/9/2017 | 5/31/2017 | 6/22/2017 | 0.083330 | 29,999 | ||||||||
5/9/2017 | 6/30/2017 | 7/20/2017 | 0.083330 | 30,005 | ||||||||
Total declared and payable for the year ended June 30, 2017 | $ | 358,987 | ||||||||||
5/9/2017 | 7/31/2017 | 8/24/2017 | $ | 0.083330 | $ | 30,011 | ||||||
5/9/2017 | 8/31/2017 | 9/21/2017 | 0.083330 | 30,017 | ||||||||
8/28/2017 | 9/29/2017 | 10/19/2017 | 0.060000 | 21,619 | ||||||||
8/28/2017 | 10/31/2017 | 11/22/2017 | 0.060000 | 21,623 | ||||||||
11/8/2017 | 11/30/2017 | 12/21/2017 | 0.060000 | 21,630 | ||||||||
11/8/2017 | 12/29/2017 | 1/18/2018 | 0.060000 | 21,659 | ||||||||
11/8/2017 | 1/31/2018 | 2/15/2018 | 0.060000 | 21,691 | ||||||||
2/7/2018 | 2/28/2018 | 3/22/2018 | 0.060000 | 21,724 | ||||||||
2/7/2018 | 3/30/2018 | 4/19/2018 | 0.060000 | 21,759 | ||||||||
2/7/2018 | 4/30/2018 | 5/24/2018 | 0.060000 | 21,797 | ||||||||
5/9/2018 | 5/31/2018 | 6/21/2018 | 0.060000 | 21,829 | ||||||||
5/9/2018 | 6/29/2018 | 7/19/2018 | 0.060000 | 21,865 | ||||||||
Total declared and payable for the year ended June 30, 2018 | $ | 277,224 |
• | $0.06 per share for July 2018 to holders of record on July 31, 2018 with a payment date of August 23, 2018. |
• | $0.06 per share for August 2018 to holders of record on August 31, 2018 with a payment date of September 20, 2018. |
Year Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Structuring and amendment fees (refer to Note 3) | $ | 29,658 | $ | 20,419 | $ | 26,207 | |||||
Royalty and Net Revenue interests | 7,652 | 5,547 | 6,853 | ||||||||
Administrative agent fees | 477 | 684 | 794 | ||||||||
Total Other Income | $ | 37,787 | $ | 26,650 | $ | 33,854 |
Year Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net increase in net assets resulting from operations | $ | 299,863 | $ | 252,906 | $ | 103,362 | |||||
Weighted average common shares outstanding | 361,456,075 | 358,841,714 | 356,134,297 | ||||||||
Net increase in net assets resulting from operations per share | $ | 0.83 | $ | 0.70 | $ | 0.29 |
Tax Year Ended August 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Ordinary income | $ | 359,215 | $ | 355,985 | $ | 413,640 | ||||||
Capital gain | — | — | — | |||||||||
Return of capital | — | — | — | |||||||||
Total distributions paid to shareholders | $ | 359,215 | $ | 355,985 | $ | 413,640 |
Tax Year Ended August 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Net increase in net assets resulting from operations | $ | 254,904 | $ | 262,831 | $ | 360,572 | ||||||
Net realized loss on investments | 100,765 | 22,666 | 164,230 | |||||||||
Net unrealized (gains) losses on investments | (61,939 | ) | 73,181 | (157,745 | ) | |||||||
Other temporary book-to-tax differences | (32,117 | ) | (56,036 | ) | 98,289 | |||||||
Permanent differences | (772 | ) | 2,489 | 2,436 | ||||||||
Taxable income before deductions for distributions | $ | 260,841 | $ | 305,131 | $ | 467,782 |
• | No incentive fee in any calendar quarter in which our pre-incentive fee net investment income does not exceed the hurdle rate; |
• | 100.00% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming a 7.00% annualized hurdle rate); and |
• | 20.00% of the amount of our pre-incentive fee net investment income, if any, that exceeds 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming a 7.00% annualized hurdle rate). |
Year Ended June 30, 2016 | $ | 1,123 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 50 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | 150 | |
June 30, 2018 | 225 |
Year Ended June 30, 2016 | $ | 4,450 | |
Year Ended June 30, 2017 | 450 | ||
Year Ended June 30, 2018 | 338 |
Year Ended June 30, 2016 | $ | 1,918 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 3,196 | |
Year Ended June 30, 2017 | 123 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 3,123 | |
Year Ended June 30, 2017 | 2,992 | ||
Year Ended June 30, 2018 | 3,704 |
Year Ended June 30, 2016 | $ | 475 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | — | |
June 30, 2018 | 306 |
Year Ended June 30, 2016 | $ | 240 | |
Year Ended June 30, 2017 | 240 | ||
Year Ended June 30, 2018 | 180 |
June 30, 2017 | $ | 60 | |
June 30, 2018 | — |
June 30, 2017 | $ | — | |
June 30, 2018 | 60 |
Year Ended June 30, 2016 | $ | 96 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | 45 |
June 30, 2017 | $ | 1 | |
June 30, 2018 | 7 |
Year Ended June 30, 2016 | $ | (390 | ) |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | 3,394 |
Year Ended June 30, 2016 | $ | (2,819 | ) |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 300 | |
Year Ended June 30, 2017 | 300 | ||
Year Ended June 30, 2018 | 425 |
June 30, 2017 | $ | 75 | |
June 30, 2018 | 150 |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | 15 | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | — | |
June 30, 2018 | 55 |
Year Ended June 30, 2017 | $ | 923 | |
Year Ended June 30, 2018 | 2,240 |
Year Ended June 30, 2016 | $ | 323 | |
Year Ended June 30, 2017 | 403 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 7,398 | |
Year Ended June 30, 2017 | 9,950 | ||
Year Ended June 30, 2018 | 10,515 |
Year Ended June 30, 2016 | $ | 921 | |
Year Ended June 30, 2017 | 2,804 | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | 29 | |
June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 2,067 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | 903 |
Year Ended June 30, 2016 | $ | 700 | |
Year Ended June 30, 2017 | 700 | ||
Year Ended June 30, 2018 | 148 |
June 30, 2017 | $ | 175 | |
June 30, 2018 | 175 |
June 30, 2017 | $ | — | |
June 30, 2018 | 33 |
Year Ended June 30, 2016 | $ | 7,250 | |
Year Ended June 30, 2017 | 200 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 5,700 | |
Year Ended June 30, 2017 | 5,734 | ||
Year Ended June 30, 2018 | 6,360 |
June 30, 2017 | $ | 2,631 | |
June 30, 2018 | 2,631 |
Year Ended June 30, 2016 | $ | 250 | |
Year Ended June 30, 2017 | 250 | ||
Year Ended June 30, 2018 | 188 |
June 30, 2017 | $ | 63 | |
June 30, 2018 | — |
June 30, 2017 | $ | — | |
June 30, 2018 | 63 |
Year Ended June 30, 2016 | $ | 120 | |
Year Ended June 30, 2017 | 217 | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | 0 | |
June 30, 2018 | 18 |
Year Ended June 30, 2016 | $ | 4,896 | |
Year Ended June 30, 2017 | 6,424 | ||
Year Ended June 30, 2018 | 7,834 |
Year Ended June 30, 2016 | $ | 3,650 | |
Year Ended June 30, 2017 | 1,726 | ||
Year Ended June 30, 2018 | 920 |
Year Ended June 30, 2016 | $ | 2,934 | |
Year Ended June 30, 2017 | 2,057 | ||
Year Ended June 30, 2018 | 614 |
June 30, 2017 | $ | 167 | |
June 30, 2018 | 274 |
Year Ended June 30, 2016 | $ | 679 | |
Year Ended June 30, 2017 | 2,220 | ||
Year Ended June 30, 2018 | 6,735 |
Year Ended June 30, 2016 | $ | 56,698 | |
Year Ended June 30, 2017 | 51,116 | ||
Year Ended June 30, 2018 | 47,422 |
Year Ended June 30, 2016 | $ | 861 | |
Year Ended June 30, 2017 | 7,572 | ||
Year Ended June 30, 2018 | 1,767 |
June 30, 2017 | $ | 123 | |
June 30, 2018 | 4,703 |
Year Ended June 30, 2016 | $ | (600 | ) |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 1,200 | |
Year Ended June 30, 2017 | 1,800 | ||
Year Ended June 30, 2018 | 1,200 |
June 30, 2017 | $ | 600 | |
June 30, 2018 | — |
June 30, 2017 | $ | — | |
March 31, 2018 | 600 |
June 30, 2017 | $ | 1 | |
June 30, 2018 | 26 |
Year Ended June 30, 2016 | $ | 159 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 427 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 526 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 75 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | 525 | |
June 30, 2018 | 825 |
Year Ended June 30, 2016 | $ | 65 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2018 | $ | 4,775 |
Year Ended June 30, 2018 | $ | 582 |
June 30, 2017 | $ | — | |
June 30, 2018 | 127 |
Year Ended June 30, 2016 | $ | 711 | |
Year Ended June 30, 2017 | 468 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 5,196 | |
Year Ended June 30, 2017 | 6,284 | ||
Year Ended June 30, 2018 | 7,618 |
Year Ended June 30, 2016 | $ | 139 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | 21 | |
June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 566 | |
Year Ended June 30, 2017 | 564 | ||
Year Ended June 30, 2018 | 588 |
June 30, 2017 | $ | 46 | |
June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 300 | |
Year Ended June 30, 2017 | 300 | ||
Year Ended June 30, 2018 | 300 |
June 30, 2017 | $ | 75 | |
June 30, 2018 | 75 |
Year Ended June 30, 2016 | $ | 60 | |
Year Ended June 30, 2017 | 224 | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | — | |
June 30, 2018 | 51 |
Year Ended June 30, 2016 | N/A | |
Year Ended June 30, 2017 | — | |
Year Ended June 30, 2018 | 11,279 |
Year Ended June 30, 2016 | $ | 40,147 | |
Year Ended June 30, 2017 | 60,707 | ||
Year Ended June 30, 2018 | 73,907 |
Year Ended June 30, 2016 | $ | 703 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | 776 |
June 30, 2017 | $ | 147 | |
June 30, 2018 | 426 |
Year Ended June 30, 2016 | $ | 22,543 | |
Year Ended June 30, 2017 | 13,895 | ||
Year Ended June 30, 2018 | 13,505 |
June 30, 2017 | $ | 27 | |
June 30, 2018 | — |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | 7,940 | ||
Year Ended June 30, 2018 | 3,170 |
June 30, 2017 | $ | 39 | |
June 30, 2018 | — |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | 2,235 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 2,712 | |
Year Ended June 30, 2017 | 5,532 | ||
Year Ended June 30, 2018 | 6,531 |
Year Ended June 30, 2016 | $ | 180 | |
Year Ended June 30, 2017 | 2,147 | ||
Year Ended June 30, 2018 | 2,303 |
Year Ended June 30, 2016 | $ | 2,483 | |
Year Ended June 30, 2017 | 1,507 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 593 | |
Year Ended June 30, 2017 | 1,300 | ||
Year Ended June 30, 2018 | 1,700 |
June 30, 2017 | $ | 325 | |
June 30, 2018 | 525 |
Year Ended June 30, 2016 | $ | 2,363 | |
Year Ended June 30, 2017 | 6,241 | ||
Year Ended June 30, 2018 | 1,823 |
June 30, 2017 | $ | 6 | |
June 30, 2018 | 286 |
June 30, 2017 | $ | 1 | |
June 30, 2018 | 19 |
Year Ended June 30, 2016 | $ | 3,963 | |
Year Ended June 30, 2017 | 4,310 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 300 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 3,212 | |
Year Ended June 30, 2017 | 3,406 | ||
Year Ended June 30, 2018 | 3,485 |
Year Ended June 30, 2016 | $ | 300 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | 591 |
June 30, 2017 | $ | 9 | |
June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 400 | |
Year Ended June 30, 2017 | 400 | ||
Year Ended June 30, 2018 | 400 |
June 30, 2017 | $ | 100 | |
June 30, 2018 | 100 |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | 46 |
June 30, 2017 | $ | — | |
June 30, 2018 | 15 |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | 100 | ||
Year Ended June 30, 2018 | 1,999 |
Year Ended June 30, 2016 | $ | 529 | |
Year Ended June 30, 2017 | 527 | ||
Year Ended June 30, 2018 | 526 |
June 30, 2017 | $ | 1 | |
June 30, 2018 | 1 |
Year Ended June 30, 2016 | $ | 996 | |
Year Ended June 30, 2017 | 991 | ||
Year Ended June 30, 2018 | 929 |
June 30, 2017 | $ | 3 | |
June 30, 2018 | 2 |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | 213 | ||
Year Ended June 30, 2018 | 400 |
June 30, 2017 | $ | 100 | |
June 30, 2018 | 100 |
June 30, 2017 | $ | 1,288 | |
June 30, 2018 | 1,288 |
June 30, 2017 | $ | — | |
June 30, 2018 | 4 |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | 250 |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | 3,742 |
June 30, 2017 | $ | — | |
June 30, 2018 | 270 |
Year Ended June 30, 2016 | $ | 614 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 299 | |
Year Ended June 30, 2017 | 149 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 2,908 | |
Year Ended June 30, 2017 | 2,877 | ||
Year Ended June 30, 2018 | 3,064 |
June 30, 2017 | $ | — | |
June 30, 2018 | 18 |
Year Ended June 30, 2016 | $ | 180 | |
Year Ended June 30, 2017 | 165 | ||
Year Ended June 30, 2018 | 180 |
June 30, 2017 | $ | 45 | |
June 30, 2018 | 45 |
Year Ended June 30, 2016 | $ | 2 | |
Year Ended June 30, 2017 | 29 | ||
Year Ended June 30, 2018 | 2 |
June 30, 2017 | $ | — | |
June 30, 2018 | 11 |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | 598 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 1,075 | |
Year Ended June 30, 2017 | 3,022 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | 503 | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | 325 | |
June 30, 2018 | 625 |
Year Ended June 30, 2016 | $ | 4,252 | |
Year Ended June 30, 2017 | 4,518 | ||
Year Ended June 30, 2018 | 4,861 |
Year Ended June 30, 2016 | $ | 1,509 | |
Year Ended June 30, 2017 | 1,822 | ||
Year Ended June 30, 2018 | 2,157 |
June 30, 2017 | $ | 13 | |
June 30, 2018 | 14 |
Year Ended June 30, 2016 | $ | 1,111 | |
Year Ended June 30, 2017 | 1,111 | ||
Year Ended June 30, 2018 | 1,110 |
Year Ended June 30, 2016 | $ | 90 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | 3 | |
June 30, 2018 | 3 |
Year Ended June 30, 2016 | $ | 300 | |
Year Ended June 30, 2017 | 300 | ||
Year Ended June 30, 2018 | 5 |
June 30, 2017 | $ | — | |
June 30, 2018 | 75 |
June 30, 2017 | $ | 75 | |
June 30, 2018 | — |
Year Ended June 30, 2016 | $ | 9 | |
Year Ended June 30, 2017 | — | ||
Year Ended June 30, 2018 | — |
June 30, 2017 | $ | 3 | |
June 30, 2018 | 3 |
Year Ended June 30, 2016 | $ | 124 | |
Year Ended June 30, 2017 | 41 | ||
Year Ended June 30, 2018 | 14 |
June 30, 2017 | $ | 14 | |
June 30, 2018 | — |
June 30, 2017 | $ | — | |
June 30, 2018 | 41 |
Year Ended June 30, 2016 | $ | — | |
Year Ended June 30, 2017 | 243 | ||
Year Ended June 30, 2018 | — |
Year Ended June 30, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Per Share Data | |||||||||||||||||||
Net asset value at beginning of year | $ | 9.32 | $ | 9.62 | $ | 10.31 | $ | 10.56 | $ | 10.72 | |||||||||
Net investment income(1) | 0.79 | 0.85 | 1.04 | 1.03 | 1.19 | ||||||||||||||
Net realized and change in unrealized (losses) gains(1) | 0.04 | (0.15 | ) | (0.75 | ) | (0.05 | ) | (0.13 | ) | ||||||||||
Net increase from operations | 0.83 | 0.70 | 0.29 | 0.98 | 1.06 | ||||||||||||||
Distributions of net investment income | (0.77 | ) | (1.00 | ) | (1.00 | ) | (1.19 | ) | (1.32 | ) | |||||||||
Common stock transactions(2) | (0.03 | ) | — | (4) | 0.02 | (0.04 | ) | 0.10 | |||||||||||
Net asset value at end of year | $ | 9.35 | $ | 9.32 | $ | 9.62 | $ | 10.31 | $ | 10.56 | |||||||||
Per share market value at end of year | $ | 6.71 | $ | 8.12 | $ | 7.82 | $ | 7.37 | $ | 10.63 | |||||||||
Total return based on market value(3) | (7.42 | %) | 16.80 | % | 21.84 | % | (20.84 | %) | 10.88 | % | |||||||||
Total return based on net asset value(3) | 12.39 | % | 8.98 | % | 7.15 | % | 11.47 | % | 10.97 | % | |||||||||
Shares of common stock outstanding at end of year | 364,409,938 | 360,076,933 | 357,107,231 | 359,090,759 | 342,626,637 | ||||||||||||||
Weighted average shares of common stock outstanding | 361,456,075 | 358,841,714 | 356,134,297 | 353,648,522 | 300,283,941 | ||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets at end of year | $ | 3,407,047 | $ | 3,354,952 | $ | 3,435,917 | $ | 3,703,049 | $ | 3,618,182 | |||||||||
Portfolio turnover rate | 30.70 | % | 23.65 | % | 15.98 | % | 21.89 | % | 15.21 | % | |||||||||
Ratio of operating expenses to average net assets | 11.08 | % | 11.57 | % | 11.95 | % | 11.66 | % | 11.11 | % | |||||||||
Ratio of net investment income to average net assets | 8.57 | % | 8.96 | % | 10.54 | % | 9.87 | % | 11.18 | % |
(1) | Per share data amount is based on the weighted average number of common shares outstanding for the year presented (except for dividends to shareholders which is based on actual rate per share). |
(2) | Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our dividend reinvestment plan, shares issued to acquire investments and shares repurchased below net asset value pursuant to our Repurchase Program. |
(3) | Total return based on market value is based on the change in market price per share between the opening and ending market prices per share in each period and assumes that dividends are reinvested in accordance with our dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in each period and assumes that dividends are reinvested in accordance with our dividend reinvestment plan. |
(4) | Amount is less than $0.01. |
Investment Income | Net Investment Income | Net Realized and Unrealized (Losses) Gains | Net Increase (Decrease) in Net Assets from Operations | |||||||||||||||||||||||||||
Quarter Ended | Total | Per Share(1) | Total | Per Share(1) | Total | Per Share(1) | Total | Per Share(1) | ||||||||||||||||||||||
September 30, 2015 | $ | 200,251 | $ | 0.56 | $ | 91,242 | $ | 0.26 | $ | (63,425 | ) | $ | (0.18 | ) | $ | 27,817 | $ | 0.08 | ||||||||||||
December 31, 2015 | 209,191 | 0.59 | 100,893 | 0.28 | (196,013 | ) | (0.55 | ) | (95,120 | ) | (0.27 | ) | ||||||||||||||||||
March 31, 2016 | 189,493 | 0.53 | 87,626 | 0.25 | (12,118 | ) | (0.03 | ) | 75,508 | 0.21 | ||||||||||||||||||||
June 30, 2016 | 193,038 | 0.54 | 91,367 | 0.26 | 3,790 | 0.01 | 95,157 | 0.27 | ||||||||||||||||||||||
September 30, 2016 | $ | 179,832 | $ | 0.50 | $ | 78,919 | $ | 0.22 | $ | 2,447 | $ | 0.01 | $ | 81,366 | $ | 0.23 | ||||||||||||||
December 31, 2016 | 183,480 | 0.51 | 84,405 | 0.24 | 16,475 | 0.04 | 100,880 | 0.28 | ||||||||||||||||||||||
March 31, 2017 | 171,032 | 0.48 | 73,080 | 0.20 | (53,588 | ) | (0.15 | ) | 19,492 | 0.05 | ||||||||||||||||||||
June 30, 2017 | 166,702 | 0.46 | 69,678 | 0.19 | (18,510 | ) | (0.05 | ) | 51,168 | 0.14 | ||||||||||||||||||||
September 30, 2017 | $ | 158,579 | $ | 0.44 | $ | 63,732 | $ | 0.18 | $ | (51,759 | ) | $ | (0.15 | ) | $ | 11,973 | $ | 0.03 | ||||||||||||
December 31, 2017 | 162,400 | 0.45 | 73,192 | 0.20 | 48,535 | 0.14 | 121,727 | 0.34 | ||||||||||||||||||||||
March 31, 2018 | 162,835 | 0.45 | 70,446 | 0.19 | (18,587 | ) | (0.04 | ) | 51,859 | 0.14 | ||||||||||||||||||||
June 30, 2018 | 174,031 | 0.48 | 79,480 | 0.22 | 34,823 | 0.09 | 114,304 | 0.31 |
(1) | Per share amounts are calculated using the weighted average number of common shares outstanding for the period presented. As such, the sum of the quarterly per share amounts above will not necessarily equal the per share amounts for the fiscal year. |
• | $0.06 per share for September 2018 to holders of record on September 28, 2018 with a payment date of October 18, 2018. |
• | $0.06 per share for October 2018 to holders of record on October 31, 2018 with a payment date of November 21, 2018. |
PROSPECTUS SUPPLEMENT |
February 8, 2019 |