UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

 

For the quarterly period ended March 31, 2017

 

OR

 

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

 

Commission file number: 814-00866

  

MONROE CAPITAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Maryland 27-4895840

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

   

311 South Wacker Drive, Suite 6400

Chicago, Illinois

60606
(Address of Principal Executive Office) (Zip Code)

 

(312) 258-8300

(Registrant’s Telephone Number, Including Area Code)

  

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

 

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

 

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

 

Large accelerated filer     ¨ Accelerated filer      x
       
Non-accelerated filer      ¨   (Do not check if a smaller reporting company) Smaller reporting company ¨
       
Emerging growth company x    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    x 

 

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

 

As of May 8, 2017, the registrant had 16,722,025 shares of common stock, $0.001 par value, outstanding.

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART I. FINANCIAL INFORMATION 3
     
Item 1. Consolidated Financial Statements 3
     
  Consolidated Statements of Assets and Liabilities as of March 31, 2017 (unaudited) and December 31, 2016 3
     
  Consolidated Statements of Operations for the three months ended March 31, 2017 (unaudited) and 2016 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2017 (unaudited) and 2016 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the three months ended March 31, 2017 (unaudited) and 2016 (unaudited) 6
     
  Consolidated Schedules of Investments as of March 31, 2017 (unaudited) and December 31, 2016 7
     
  Notes to Consolidated Financial Statements (unaudited) 16
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 32
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 44
     
Item 4. Controls and Procedures 44
     
PART II. OTHER INFORMATION 45
     
Item 1. Legal Proceedings 45
     
Item 1A. Risk Factors 45
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45
     
Item 3. Defaults Upon Senior Securities 45
     
Item 4. Mine Safety Disclosures 45
     
Item 5. Other Information 45
     
Item 6. Exhibits 46
     
Signatures   47

 

 2 

 

  

Part I. Financial Information

Item 1. Consolidated Financial Statements

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

(in thousands, except per share data)

 

   March 31, 2017   December 31, 2016 
   (unaudited)     
ASSETS          
Investments, at fair value:          
Non-controlled/non-affiliate company investments  $358,883   $353,980 
Non-controlled affiliate company investments   49,219    50,041 
Controlled affiliate company investments   10,047    8,899 
Total investments, at fair value (amortized cost of: $422,102 and $413,242, respectively)   418,149    412,920 
Cash   5,483    5,958 
Restricted cash   10,555    2,373 
Interest receivable   3,056    2,643 
Other assets   1,454    651 
Total assets   438,697    424,545 
           
LIABILITIES          
Debt:          
Revolving credit facility   136,000    129,000 
SBA debentures payable   60,000    51,500 
Total debt   196,000    180,500 
Less:  Unamortized deferred financing costs   (4,268)   (3,945)
Total debt, less unamortized deferred financing costs   191,732    176,555 
Secured borrowings, at fair value (proceeds of: $1,320 and $1,320, respectively)   1,315    1,314 
Interest payable   820    735 
Management fees payable   1,805    1,749 
Incentive fees payable   1,465    1,222 
Accounts payable and accrued expenses   1,917    2,120 
Directors fees payable   37    - 
Total liabilities   199,091    183,695 
Net assets  $239,606   $240,850 
           
Commitments and contingencies (See Note 10)          
           
ANALYSIS OF NET ASSETS          
Common stock, $0.001 par value, 100,000 shares authorized, 16,712 and 16,582 shares issued and outstanding, respectively  $17   $17 
Capital in excess of par value   235,516    233,526 
Undistributed net investment income (accumulated distributions in excess of net investment income)   7,268    7,037 
Accumulated net realized gain (loss) on investments   754    587 
Accumulated net unrealized appreciation (depreciation) on investments and secured borrowings   (3,949)   (317)
Total net assets  $239,606   $240,850 
           
Net asset value per share  $14.34   $14.52 

 

See Notes to Consolidated Financial Statements.

 

 3 

 

  

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

(in thousands, except per share data)

 

   Three months ended March 31, 
   2017   2016 
Investment income:          
Interest income:          
Non-controlled/non-affiliate company investments  $10,055   $8,273 
Non-controlled affiliate company investments   1,196    1,073 
Controlled affiliate company investments   177    - 
Total interest income   11,428    9,346 
Dividend income:          
Non-controlled/non-affiliate company investments   250    250 
Non-controlled affiliate company investments   -    1,612 
Total dividend income   250    1,862 
Fee income:          
Non-controlled/non-affiliate company investments   328    331 
Total fee income   328    331 
Total investment income   12,006    11,539 
           
Operating expenses:          
Interest and other debt financing expenses   2,010    1,691 
Base management fees   1,805    1,500 
Incentive fees   1,290    1,740 
Professional fees   291    207 
Administrative service fees   330    328 
General and administrative expenses   209    164 
Excise taxes   -    87 
Directors fees   37    35 
Total expenses   5,972    5,752 
Net investment income   6,034    5,787 
           
Net gain (loss) on investments and secured borrowings:          
Net realized gain (loss) on investments:          
Non-controlled/non-affiliate company investments   167    587 
Net realized gain (loss) on investments   167    587 
           
Net change in unrealized appreciation (depreciation) on investments:          
Non-controlled/non-affiliate company investments   192    (859)
Non-controlled affiliate company investments   (2,164)   1,828 
Controlled affiliate company investments   (1,659)   573 
Net change in unrealized appreciation (depreciation) on investments   (3,631)   1,542 
           
Net change in unrealized (appreciation) depreciation on secured borrowings   (1)   28 
           
Net gain (loss) on investments and secured borrowings   (3,465)   2,157 
           
Net increase (decrease) in net assets resulting from operations  $2,569   $7,944 
           
Per common share data:          
Net investment income per share - basic and diluted  $0.36   $0.44 
Net increase in net assets resulting from operations per share - basic and diluted  $0.15   $0.61 
Weighted average common shares outstanding - basic and diluted   16,594    13,008 

 

See Notes to Consolidated Financial Statements.

 

 4 

 

  

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

 

(in thousands)

 

  Common Stock  Capital in  Undistributed net investment
income (accumulated distributions in excess of net
  Accumulated
net realized gain
  Accumulated net unrealized
appreciation (depreciation) on investments and
    
  Number of
shares
  Par
value
  excess of
par value
  investment
income)
  (loss) on
investments
  secured
borrowings
  Total
net assets
 
Balances at December 31, 2015  13,008  $13  $184,419  $1,692  $-  $(1,589) $184,535 
Net increase (decrease) in net assets resulting from operations  -   -   -   5,787   587   1,570   7,944 
Distributions to stockholders:                            
Distributions from net investment income  -   -   -   (4,553)  -   -   (4,553)
Distributions from realized gain  -   -   -   -   -   -   - 
Balances at March 31, 2016  13,008  $13  $184,419  $2,926  $587  $(19) $187,926 
                             
Balances at December 31, 2016  16,582  $17  $233,526  $7,037  $587  $(317) $240,850 
Net increase (decrease) in net assets resulting from operations  -   -   -   6,034   167   (3,632)  2,569 
Issuance of common stock, net of offering and underwriting costs  114   -   1,736   -   -   -   1,736 
Distributions to stockholders:                            
Stock issued in connection with dividend reinvestment plan  16   -   254   (254)  -   -   - 
Distributions from net investment income  -   -   -   (5,549)  -   -   (5,549)
Balances at March 31, 2017  16,712  $17  $235,516  $7,268  $754  $(3,949) $239,606 

 

See Notes to Consolidated Financial Statements.

 

 5 

 

  

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

(in thousands)

 

   Three months ended March 31, 
   2017   2016 
         
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $2,569   $7,944 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:          
Net change in unrealized (appreciation) depreciation on investments   3,631    (1,542)
Net change in unrealized appreciation (depreciation) on secured borrowings   1    (28)
Net realized (gain) loss on investments   (167)   (587)
Payment-in-kind interest income   (613)   (370)
Net accretion of discounts and amortization of premiums   (388)   (365)
Proceeds from principal payments and sales of investments   33,844    26,803 
Purchases of investments   (41,536)   (26,316)
Amortization of deferred financing costs   231    182 
Changes in operating assets and liabilities:          
Interest receivable   (413)   (270)
Other assets   (803)   68 
Payable for open trades   -    (5,297)
Interest payable   85    (336)
Management fees payable   56    (3)
Incentive fees payable   243    489 
Accounts payable and accrued expenses   (203)   69 
Directors fees payable   37    (39)
Net cash provided by (used in) operating activities   (3,426)   402 
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   39,500    20,000 
Repayments of revolving credit facility   (32,500)   (9,000)
SBA debentures borrowings   8,500    - 
Payments of deferred financing costs   (554)   - 
Repayments on secured borrowings   -    (200)
Proceeds from shares sold, net of offering and underwriting costs   1,736    - 
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $254 and $0, respectively   (5,549)   (4,553)
Net cash provided by (used in) financing activities   11,133    6,247 
           
Net increase (decrease) in Cash and Restricted Cash   7,707    6,649 
Cash and Restricted Cash, beginning of period (1)   8,331    13,866 
Cash and Restricted Cash, end of period (2)  $16,038   $20,515 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $1,639   $1,772 
Cash paid for excise taxes during the period  $495   $167 

 

 

(1)Represents cash and restricted cash of $5,958 and $2,373, respectively, from the consolidated statement of assets and liabilities as of December 31, 2016. Represents cash and restricted cash of $5,278 and $8,588, respectively, from the consolidated statement of assets and liabilities as of December 31, 2015.

(2)Represents cash and restricted cash of $5,483 and $10,555, respectively, from the consolidated statement of assets and liabilities as of March 31, 2017. Represents cash and restricted cash of $5,770 and $14,745, respectively, from the consolidated statement of assets and liabilities as of March 31, 2016.

 

See Notes to Consolidated Financial Statements.

 

 6 

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2017

(in thousands, except for units)

 

Portfolio Company (a)  Industry  Spread Above
Index (b)
  Interest Rate    Maturity  Principal   Amortized
Cost
   Fair Value (c)   % of
Net Assets (d)
 
Senior Secured Loans                                   
AdTheorent, Inc. (Revolver) (e)  Media: Advertising, Printing & Publishing  L+8.50%   9.28%   12/22/2021   515   232   232    0.1%
AdTheorent, Inc.  Media: Advertising, Printing & Publishing  L+8.50%   9.28%   12/22/2021   5,000    4,904    5,015    2.1%
All Holding Company, LLC (f)  Beverage, Food & Tobacco  L+7.00%   7.98%   11/15/2021   5,431    5,334    5,513    2.3%
American Community Homes, Inc. (g)  Banking, Finance, Insurance, & Real Estate  L+8.00%   9.50%   7/22/2019   7,667    7,560    7,843    3.3%
American Community Homes, Inc. (g)  Banking, Finance, Insurance, & Real Estate  L+12.50%   9.50% Cash/4.50% PIK    7/22/2019   4,265    4,212    4,351    1.8%
American Community Homes, Inc. (g)  Banking, Finance, Insurance, & Real Estate  L+12.50%   9.50% Cash/4.50% PIK    n/a(h)  524    515    524    0.2%
Answers Corporation  High Tech Industries  P + 6.25%   10.25%(i)   10/1/2021   2,903    2,822    1,352    0.6%
Answers Corporation (DIP Facility) (e)  High Tech Industries  L+7.00%   8.00%(i)   n/a(h)  269    105    108    0.0%
BC Equity Ventures LLC  Hotels, Gaming & Leisure  L+6.50%   7.50%   8/31/2022   2,605    2,557    2,635    1.1%
BCC Software, LLC (f)  High Tech Industries  L+8.00%   9.00%   6/20/2019   3,248    3,210    3,247    1.3%
BCC Software, LLC (Revolver) (e)  High Tech Industries  L+8.00%   9.00%   6/20/2019   469    -    -    0.0%
Beaver-Visitec International Holdings, Inc.  Healthcare & Pharmaceuticals  L+5.00%   6.15%   8/19/2023   4,975    4,929    4,975    2.1%
Bluestem Brands, Inc.  Consumer Goods: Non-Durable  L+7.50%   8.54%   11/6/2020   2,718    2,698    2,242    0.9%
Cali Bamboo, LLC  Construction & Building  L+8.50%   9.48%   7/10/2020   5,409    5,341    5,517    2.3%
Cali Bamboo, LLC (Revolver) (e)  Construction & Building  L+8.50%   9.48%   7/10/2020   1,624    996    996    0.4%
California Pizza Kitchen, Inc.  Beverage, Food & Tobacco  L+6.00%   7.00%   8/23/2022   6,965    6,895    6,966    2.9%
Corbett Technology Solutions, Inc. (f)  High Tech Industries  L+7.00%   7.98%   11/7/2021   4,444    4,382    4,481    1.9%
Corbett Technology Solutions, Inc. (Revolver) (e)  High Tech Industries  L+7.00%   7.98%   11/7/2021   867    -    -    0.0%
Cornerstone Detention Products, Inc. (j)  Construction & Building  L+10.50%   10.50% Cash/1.00% PIK    4/8/2019   3,676    3,644    3,568    1.5%
Cornerstone Detention Products, Inc. (Revolver) (e)  Construction & Building  L+9.50%   10.50%   4/8/2019   400    -    -    0.0%
CRCI Holdings, Inc.  Utilities: Electric  L+5.50%   6.65%   8/31/2023   2,866    2,840    2,872    1.2%
Cyalume Technologies Holdings, Inc. (f)  Aerospace & Defense  L+9.00%   10.00%   5/18/2020   4,222    4,142    4,348    1.8%
Cyalume Technologies Holdings, Inc. (Delayed Draw)  Aerospace & Defense  L+9.00%   10.00%   5/18/2020   376    376    387    0.2%
Cyalume Technologies Holdings, Inc. (Revolver) (e)  Aerospace & Defense  L+9.00%   10.00%   5/18/2020   1,528    306    306    0.1%
Diesel Direct Holdings, Inc. (f)  Energy: Oil & Gas  L+7.00%   7.98%   2/17/2020   5,156    5,156    5,208    2.2%
EB Employee Solutions, LLC (f)  Services: Business  L+8.50%   10.00%   2/28/2019   3,268    3,228    3,157    1.3%
Echelon Funding I, LLC (Delay Draw) (e) (k) (l)  Banking, Finance, Insurance, & Real Estate  L+10.25%   11.03%   2/24/2021   15,000    14,286    14,290    6.0%
Edge Systems Holdings Corp.  Healthcare & Pharmaceuticals  L+8.00%   9.00%   12/1/2021   3,717    3,646    3,761    1.6%
Edge Systems Holdings Corp. (Revolver) (e)  Healthcare & Pharmaceuticals  L+8.00%   9.00%   12/1/2021   260    -    -    0.0%
Familia Dental Group Holdings, LLC (f)  Healthcare & Pharmaceuticals  L+8.00%   8.98%   4/8/2021   5,363    5,293    5,470    2.3%
Familia Dental Group Holdings, LLC (Delayed Draw)  Healthcare & Pharmaceuticals  L+8.00%   8.98%   4/8/2021   516    516    526    0.2%
Familia Dental Group Holdings, LLC (Revolver) (e)  Healthcare & Pharmaceuticals  L+8.00%   8.98%   4/8/2021   573    115    115    0.0%
Forman Mills, Inc. (f)  Retail  L+7.50%   8.50%   10/4/2021   8,500    8,344    8,377    3.5%
InMobi Pte, Ltd. (Delayed Draw) (e) (k) (l)  Media: Advertising, Printing & Publishing  L+10.17%   11.17%   9/1/2018   10,000    6,667    6,623    2.8%
Inteva Products, LLC  Automotive  L+8.50%   9.75%   9/8/2021   1,956    1,946    1,965    0.8%
Jerry Lee Radio, LLC  Media: Broadcasting & Subscription  L+9.50%   10.48%   12/17/2020   13,230    12,969    13,495    5.6%
Landpoint, LLC  Energy: Oil & Gas  L+12.75%   12.00% Cash/2.25% PIK(m)   12/20/2019   2,521    2,495    2,434    1.0%
Landpoint, LLC (Revolver) (e)  Energy: Oil & Gas  L+10.50%   12.00%   12/20/2019   313    -    -    0.0%
L.A.R.K. Industries, Inc.  Construction & Building  L+8.50%   9.50%   9/3/2019   8,510    8,375    8,565    3.6%
Liftforward SPV II, LLC (e) (l)  Banking, Finance, Insurance, & Real Estate  L+10.75%   11.73%   11/10/2020   10,000    3,482    3,522    1.5%
Luxury Optical Holdings Co.  Retail  L+11.50%   9.00% Cash/3.50% PIK    9/12/2019   4,038    3,995    3,911    1.6%
Luxury Optical Holdings Co. (Revolver) (e)  Retail  L+8.00%   9.00% Cash    9/12/2019   273    -    -    0.0%
Madison Logic, Inc. (f)  Services: Business  L+8.00%   8.98%   11/30/2021   10,434    10,235    10,570    4.4%
Madison Logic, Inc. (Delayed Draw) (e) (k)  Services: Business  L+8.00%   8.98%   11/30/2021   4,818    -    -    0.0%
Madison Logic, Inc. (Revolver) (e)  Services: Business  L+8.00%   8.98%   11/30/2021   988    -    -    0.0%
Mid-West Wholesale Hardware Co. (f)   Wholesale  L+7.50%   8.48%   2/9/2022   11,970    11,736    11,898    5.0%
Mid-West Wholesale Hardware Co. (Revolver) (e)  Wholesale  L+7.50%   8.48%   2/9/2022   4,421    1,137    1,137    0.5%
Miles Partnership LLC  Hotels, Gaming & Leisure  L+12.50%   10.65% Cash/3.00% PIK    3/24/2021   6,119    6,066    6,126    2.6%
Miles Partnership LLC (Delayed Draw) (e) (k)  Hotels, Gaming & Leisure  L+12.50%   10.65% Cash/3.00% PIK    3/24/2021   1,454    1,106    1,107    0.5%
Miles Partnership LLC (Revolver) (e)  Hotels, Gaming & Leisure  L+12.50%   10.65% Cash/3.00% PIK    3/24/2021   320    -    -    0.0%
O'Brien Industrial Holdings, LLC  Metals & Mining  L+7.75%   8.75%   5/13/2019   5,286    5,225    5,363    2.2%
Peerless Network, Inc. (f)  Telecommunications  L+9.25%   9.28% Cash/0.75% PIK(n)   12/11/2020   3,500    3,434    3,498    1.5%
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.)  Services: Consumer  L+5.50%   6.65%   7/1/2020   4,614    4,542    4,642    1.9%
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.)  Services: Consumer  L+11.50%   12.65%   7/1/2020   4,807    4,729    4,795    2.0%
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.) (Revolver) (e)  Services: Consumer  L+8.50%   9.50%   8/11/2017   236    -    -    0.0%
Precision Toxicology, LLC (f)  Healthcare & Pharmaceuticals  L+11.50%   10.48% Cash/2.00% PIK    3/24/2020   4,195    4,143    4,195    1.7%
Repay Holdings, LLC  Banking, Finance, Insurance, & Real Estate  L+9.00%   9.98%   9/1/2021   11,850    11,663    11,880    5.0%
Repay Holdings, LLC (Revolver) (e)  Banking, Finance, Insurance, & Real Estate  L+9.00%   9.98%   9/1/2021   1,200    -    -    0.0%
Rockdale Blackhawk, LLC (g)  Healthcare & Pharmaceuticals  L+11.00%   12.00%   3/31/2020   10,923    10,202    10,933    4.6%
Rockdale Blackhawk, LLC (Revolver) (g)  Healthcare & Pharmaceuticals  L+11.00%   12.00%   3/31/2020   1,849    1,849    1,849    0.8%

 

See Notes to Consolidated Financial Statements.

 7 

 

 

 MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2017

(in thousands, except for units)

 

Portfolio Company (a)  Industry  Spread Above
Index (b)
  Interest Rate    Maturity  Principal   Amortized
Cost
   Fair Value (c)   % of
Net Assets (d)
 
Rockdale Blackhawk, LLC (Capex) (g)  Healthcare & Pharmaceuticals  L+11.00%   12.00%   3/31/2020   549   549   549    0.2%
Rocket Dog Brands, LLC (g)  Consumer Goods: Non-Durable  n/a   12.00% PIK    8/29/2019   1,157    1,157    51    0.0%
Rocket Dog Brands, LLC (g)  Consumer Goods: Non-Durable  n/a   15.00% PIK    8/29/2019   422    418    296    0.1%
Rocket Dog Brands, LLC (g)  Consumer Goods: Non-Durable  n/a   17.00% PIK    9/30/2017   235    235    176    0.1%
SHI Holdings, Inc. (f) (g)  Healthcare & Pharmaceuticals  L+9.75%   10.73%   7/10/2019   2,625    2,596    2,625    1.1%
SHI Holdings, Inc. (Revolver) (e) (g)  Healthcare & Pharmaceuticals  L+9.75%   10.73%   7/10/2019   1,773    1,394    1,408    0.6%
SNI Companies (o)  Services: Business  L+8.00%   9.00%   12/31/2018   4,837    4,791    4,886    2.0%
SNI Companies (Revolver) (e)  Services: Business  L+8.00%   9.00%   12/31/2018   1,250    150    150    0.1%
Shields Land Company of Georgia, LLC (l)  Banking, Finance, Insurance, & Real Estate  L+9.50%   10.35%   12/28/2017   2,450    2,431    2,460    1.0%
Solaray, LLC  Consumer Goods: Non-Durable  L+6.50%   7.61%   9/9/2023   3,288    3,258    3,272    1.4%
Solaray, LLC  (Delayed Draw) (e) (k)  Consumer Goods: Non-Durable  L+6.50%   7.61%   9/9/2023   703    161    160    0.1%
Summit Container Corporation (f) (g)  Containers, Packaging & Glass  L+12.00%   12.00% Cash/2.00% PIK    1/6/2019   3,591    3,556    3,440    1.4%
Synergy Environmental Corporation (f)  Environmental Industries  L+8.00%   8.98%   4/29/2021   3,111    3,048    3,148    1.3%
Synergy Environmental Corporation (f)  Environmental Industries  L+8.00%   8.98%   4/29/2021   520    510    526    0.2%
Synergy Environmental Corporation (Delayed Draw) (e) (k)  Environmental Industries  L+8.00%   8.98%   4/29/2018   1,342    -    -    0.0%
Synergy Environmental Corporation (Revolver) (e)  Environmental Industries  L+8.00%   8.98%   4/29/2021   671    47    47    0.0%
The Worth Collection, Ltd. (f)  Retail  L+8.50%   9.48%   9/29/2021   10,863    10,663    10,846    4.5%
TPP Operating, Inc. (p)  Retail  L+6.00%   7.5% PIK(i)   11/8/2018   9,370    9,330    581    0.2%
TPP Operating, Inc. (p)  Retail  L+6.00%   7.50%(i)   11/8/2018   4,344    4,344    3,903    1.6%
TPP Operating, Inc. (p)  Retail  L+9.61%   11.11%(i)   11/8/2018   5,563    5,563    5,563    2.3%
TRG, LLC  Hotels, Gaming & Leisure  L+14.09%   8.28% Cash/6.59% PIK(q)   3/31/2021   11,863    11,827    11,910    5.0%
TRG, LLC (Revolver)  Hotels, Gaming & Leisure  L+9.50%   10.28%   3/31/2021   131    131    131    0.1%
TRG, LLC (CapEx) (e)  Hotels, Gaming & Leisure  L+9.50%   8.28% Cash/2.00% PIK    3/31/2021   1,614    948    952    0.4%
Vacation Innovations, LLC (r)  Hotels, Gaming & Leisure  L+8.60%   7.98% Cash/1.60% PIK(s)   8/20/2020   10,455    10,296    10,769    4.5%
Vacation Innovations, LLC (Revolver) (e)  Hotels, Gaming & Leisure  L+7.50%   7.98% Cash/0.50% PIK    8/20/2020   342    -    -    0.0%
Vacation Innovations, LLC (Delayed Draw) (e) (k)  Hotels, Gaming & Leisure  L+7.50%   7.98% Cash/0.50% PIK    8/20/2020   2,037    -    -    0.0%
Yandy Holding, LLC  Retail  L+9.00%   10.00%   9/30/2019   5,596    5,549    5,484    2.3%
Yandy Holding, LLC (Revolver) (e)  Retail  L+9.00%   10.00%   9/30/2019   907    -    -    0.0%
Total Senior Secured Loans              346,753    307,532    300,223    125.3%
                                    
Unitranche Loans                                   
Collaborative Neuroscience Network, LLC (t)  Healthcare & Pharmaceuticals  L+11.50%   13.00%   12/27/2017   6,120    6,063    5,854    2.5%
Collaborative Neuroscience Network, LLC  Healthcare & Pharmaceuticals  n/a   12.00% Cash/3.00% PIK    4/30/2017   288    288    288    0.1%
Fabco Automotive Corporation  Automotive  L+11.25%   8.00% Cash/4.25% PIK    4/3/2019   8,681    8,650    3,121    1.3%
Gracelock Industries, LLC  Wholesale  L+13.74%   11.00% Cash/4.24% PIK(u)   5/7/2019   4,804    4,740    4,583    1.9%
Incipio Technologies, Inc. (v)  Consumer Goods: Non-Durable  L+6.50%   7.50%   12/26/2019   14,103    13,878    13,962    5.8%
MooreCo, Inc.  Consumer Goods: Durable  L+14.50%   13.50% Cash/2.50% PIK    12/27/2017   3,579    3,565    3,579    1.5%
Output Services Group, Inc.  Services: Business  L+9.00%   9.50% Cash/1.00% PIK    12/17/2020   6,174    6,117    6,260    2.6%
Output Services Group, Inc.  Services: Business  L+9.00%   9.50% Cash/1.00% PIK    12/17/2020   7,762    7,673    7,878    3.3%
Playtime, LLC  Hotels, Gaming & Leisure  L+8.50%   9.00% Cash/1.00% PIK    12/31/2021   5,343    5,326    4,940    2.1%
Total Unitranche Loans              56,854    56,300    50,465    21.1%
                                    
Junior Secured Loans                                   
AIM Aerospace, Inc.  Aerospace & Defense  L+9.00%   10.03%   8/2/2022   5,000    4,936    5,050    2.1%
Confie Seguros Holdings II Co.  Banking, Finance, Insurance, & Real Estate  L+9.00%   10.25%   5/8/2019   8,594    8,248    8,565    3.6%
CSM Bakery Supplies LLC  Beverage, Food & Tobacco  L+7.75%   8.76%   7/3/2021   5,792    5,792    5,039    2.1%
Education Corporation of America  Services: Consumer  L+11.00%   12.15%   9/30/2017   625    616    625    0.3%
Mergermarket USA, Inc.  Media: Broadcasting & Subscription  L+6.50%   7.60%   12/19/2021   4,500    4,404    4,466    1.9%
Micro Holdings Corp.  High Tech Industries  L+7.50%   8.50%   7/8/2022   5,590    5,480    5,660    2.4%
Pre-Paid Legal Services, Inc. (Legal Shield)  Services: Consumer  L+9.00%   10.25%   7/1/2020   3,000    3,000    3,018    1.2%
Rocket Dog Brands, LLC (g)  Consumer Goods: Non-Durable  n/a   15.00% PIK    5/1/2020   2,011    2,011    -    0.0%
SCP TPZ Acquisition, Inc.  Media: Diversified & Production  L+8.25%   9.35%   5/29/2022   5,000    4,940    4,937    2.0%
Sterling Merger Sub Corp.  Services: Business  L+7.75%   8.90%   6/19/2023   5,000    4,960    4,900    2.0%
Total Junior Secured Loans                  45,112    44,387    42,260    17.6%

 

See Notes to Consolidated Financial Statements.

 8 

 

 

 MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2017

(in thousands, except for units)

 

Portfolio Company (a)  Industry  Spread Above
Index (b)
  Interest Rate    Maturity  Principal   Amortized
Cost
   Fair Value (c)   % of
Net Assets (d)
 
Equity Securities                                   
AdTheorent, Inc. (128,866 units) (w)  Media: Advertising, Printing & Publishing  -   -(x)   -   -   $129   $172    0.1%
American Community Homes, Inc. (warrant to purchase up to 9.0% of the equity) (g)  Banking, Finance, Insurance, & Real Estate  -   -(x)   10/9/2024   -    -    1,362    0.5%
Collaborative Neuroscience Network, LLC (warrant to purchase up to 4 LLC units) (w)  Healthcare & Pharmaceuticals  -   -(x)   12/27/2022   -    -    -    0.0%
Cyalume Technologies Holdings, Inc. - Series D Preferred Stock (3.06 shares) (w)  Aerospace & Defense  -   -(x)   -   -    -    693    0.3%
Education Corporation of America - Series G Preferred Stock (8,333 shares) (w)  Services: Consumer   n/a   12.00%   -   -    8,125    8,083    3.4%
Fabco Automotive Corporation (warrant to purchase up to 1.87% of the equity) (w)  Automotive  -   -(x)   -   -    -    -    0.0%
InMobi Pte, Ltd. (represents the right to purchase 2.80% of the equity) (l) (w)  Media: Advertising, Printing & Publishing  -   -(x)   9/18/2025   -    -    44    0.0%
O'Brien Industrial Holdings, LLC (warrants to purchase up to 2.44% of certain affiliated entities of the company) (w)  Metals & Mining  -   -(x)   5/13/2024   -    -    -    0.0%
Output Services Group, Inc. (warrant to purchase up to 3.89% of the common stock) (w)  Services: Business  -   -(x)   12/17/2022   -    -    918    0.4%
Playtime, LLC - Preferred Units (8,665 units) (w)  Hotels, Gaming & Leisure  -   -(x)   -   -    200    -    0.0%
Rockdale Blackhawk, LLC - LLC Units (11.56% of the LLC interest) (g)  Healthcare & Pharmaceuticals  -   -    -   -    1,093    13,354    5.6%
Rocket Dog Brands, LLC - Common Units (75,502 units) (g)  Consumer Goods: Non-Durable  -   -(x)   -   -    -    -    0.0%
Rocket Dog Brands, LLC - Preferred Units (10 units) (g)  Consumer Goods: Non-Durable  -   15.00% PIK(y)   -   -    967    -    0.0%
SHI Holdings, Inc. (24 shares of common stock) (g)  Healthcare & Pharmaceuticals  -   -(x)   -   -    27    458    0.2%
Summit Container Corporation (warrant to purchase up to 19.50% of the equity) (g)  Containers, Packaging & Glass  -   -(x)   1/6/2024   -    -    -    0.0%
The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units) (w)  Retail  -   -    -   -    86    117    0.0%
The Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units) (w)  Retail  -   -    -   -    1    -    0.0%
TPP Acquisition, Inc. (829 shares of common stock) (p)  Retail  -   -(x)   -        -    -    0.0%
TPP Operating, Inc. (40 shares of common stock) (p)  Retail  -   -(x)   -   -    3,255    -    0.0%
Total Equity Securities                       13,883    25,201    10.5%
TOTAL INVESTMENTS                 $348,662   $422,102   $418,149    174.5%

 

 
(a)All of our investments are issued by eligible U.S. portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All investments are non-controlled/non-affiliate company investments, unless otherwise noted. All of our investments are issued by U.S. portfolio companies except for InMobi Pte, Ltd. which is an international company headquartered in California.

 

(b)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) or Prime Rate (“Prime” or “P”) which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR or Prime and the current contractual interest rate in effect at March 31, 2017. Certain investments are subject to a LIBOR or Prime interest rate floor.

 

(c)Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith by our board of directors as required by the Investment Company Act of 1940. (See Note 4 in the accompanying notes to the consolidated financial statements.)

 

(d)Percentages are based on net assets of $239,606 as of March 31, 2017.

 

(e)All or a portion of this commitment was unfunded at March 31, 2017. As such, interest is earned only on the funded portion of this commitment.

 

(f)All of this loan is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP and is therefore not collateral to the Company’s revolving credit facility.

 

(g)As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns five percent or more of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was an Affiliated Person (but not a portfolio company that the Company is deemed to control).

 

(h)This is a demand note with no stated maturity.

 

See Notes to Consolidated Financial Statements.

 9 

 

 

 MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2017

(in thousands, except for units)

 

(i)This position was on non-accrual status as of March 31, 2017, meaning that the Company has ceased accruing interest income on the position. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company's accounting policies.

 

(j)A portion of this loan (principal of $2,206) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP and is therefore not collateral to the Company’s revolving credit facility.

 

(k)This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.

 

(l)This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of March 31, 2017, non-qualifying assets totaled 6.14% of the Company’s total assets.

 

(m)The PIK portion of the interest rate for Landpoint, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 2.25% per annum.

 

(n)The PIK portion of the interest rate for Peerless Network, Inc. is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.75% per annum.

 

(o)A portion of this loan (principal of $3,102) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP and is therefore not collateral to the Company’s revolving credit facility.

 

(p)As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and to “Control” this portfolio company as it owns more than 25% in company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control.

 

(q)A portion of the PIK interest rate for TRG, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 4.59% per annum.

 

(r)A portion of this loan (principal of $4,617) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP and is therefore not collateral to the Company’s revolving credit facility.

 

(s)The PIK portion of the interest rate for Vacation Innovations, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 1.10% per annum.

 

(t)The sale of a portion of this loan does not qualify for sale accounting under ASC Topic 860 — Transfers and Servicing, and therefore, the entire unitranche loan asset remains in the Consolidated Schedule of Investments.

 

(u)The PIK portion of the interest rate for Gracelock Industries, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 4.24% per annum.

 

(v)A portion of this loan (principal of $5,171) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP and is therefore not collateral to the Company’s revolving credit facility.

 

(w)Represents less than 5% ownership of the portfolio company’s voting securities.

 

(x)Represents a non-income producing security.

 

(y)This position includes a PIK dividend and is currently on non-accrual status.

 

n/a - not applicable

 

See Notes to Consolidated Financial Statements.

 

 10 

 

 

MONROE CAPITAL CORPORATION
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2016
(in thousands, except for units)

 

Portfolio Company (a)   Industry   Spread
Above
Index (b)
  Interest
Rate
  Maturity   Principal   Amortized
Cost
  Fair
Value (c)
  % of Net
Assets (d)
Senior Secured Loans                                                                
360 Holdings III Corp.     Consumer Goods: Non-Durable       L+9.00 %     10.00 %     10/1/2021       5,925     $ 5,718     $ 5,718       2.4 %
AdTheorent, Inc. (Revolver) (e)     Media: Advertising, Printing & Publishing       L+8.50 %     9.26 %     12/22/2021       515       77       77       0.0 %
AdTheorent, Inc.     Media: Advertising, Printing & Publishing       L+8.50 %     9.26 %     12/22/2021       5,000       4,908       4,900       2.0 %
All Holding Company, LLC (f)     Beverage, Food & Tobacco       L+7.00 %     7.76 %     11/15/2021       5,466       5,363       5,493       2.3 %
American Community Homes, Inc. (g)     Banking, Finance, Insurance & Real Estate       L+8.00 %     9.50 %     7/22/2019       7,667       7,550       7,816       3.3 %
American Community Homes, Inc. (g)     Banking, Finance, Insurance & Real Estate       L+12.50 %     9.50% Cash/
4.50% PIK
      7/22/2019       4,217       4,158       4,301       1.8 %
American Community Homes, Inc. (g)     Banking, Finance, Insurance & Real Estate       L+12.50 %     9.50% Cash/
4.50% PIK
      n/a (h)     518       508       518       0.2 %
Answers Corporation     High Tech Industries       P+6.25 %     10.00 %(i)     10/1/2021       2,903       2,819       1,495       0.6 %
BC Equity Ventures LLC     Hotels, Gaming & Leisure       L+6.50 %     7.50 %     8/31/2022       2,612       2,562       2,635       1.1 %
BC Equity Ventures LLC     Hotels, Gaming & Leisure       L+6.50 %     7.50 %     8/31/2022       375       372       373       0.2 %
BCC Software, LLC (f)     High Tech Industries       L+8.00 %     9.00 %     6/20/2019       2,204       2,186       2,203       0.9 %
BCC Software, LLC (Revolver) (e)     High Tech Industries       L+8.00 %     9.00 %     6/20/2019       469                   0.0 %
Beaver-Visitec International Holdings, Inc.     Healthcare & Pharmaceuticals       L+5.00 %     6.00 %     8/19/2023       4,988       4,939       4,988       2.1 %
Bluestem Brands, Inc.     Consumer Goods: Non-Durable       L+7.50 %     8.50 %     11/6/2020       2,758       2,737       2,404       1.0 %
Cali Bamboo, LLC     Construction & Building       L+8.50 %     9.26 %     7/10/2020       5,423       5,350       5,531       2.3 %
Cali Bamboo, LLC (Revolver) (e)     Construction & Building       L+8.50 %     9.26 %     7/10/2020       1,624       65       65       0.0 %
California Pizza Kitchen, Inc.     Beverage, Food & Tobacco       L+6.00 %     7.00 %     8/23/2022       6,983       6,913       6,966       2.9 %
Corbett Technology Solutions, Inc. (f)     High Tech Industries       L+7.00 %     7.76 %     11/7/2021       4,500       4,434       4,511       1.9 %
Corbett Technology Solutions, Inc.
(Revolver) (e)
    High Tech Industries       L+7.00 %     7.76 %     11/7/2021       867                   0.0 %
Cornerstone Detention Products, Inc. (j)     Construction & Building       L+10.50 %     10.50% Cash/
1.00% PIK
      4/8/2019       3,784       3,747       3,599       1.5 %
Cornerstone Detention Products, Inc. (Revolver) (e)     Construction & Building       L+9.50 %     10.50 %     4/8/2019       400                   0.0 %
CRCI Holdings, Inc.     Utilities: Electric       L+5.50 %     6.50 %     8/31/2023       2,993       2,964       2,999       1.3 %
Cyalume Technologies Holdings, Inc. (f)     Aerospace & Defense       L+9.00 %     10.00 %     5/18/2020       4,291       4,204       4,462       1.9 %
Cyalume Technologies Holdings, Inc.
(Delayed Draw)
    Aerospace & Defense       L+9.00 %     10.00 %     5/18/2020       387       387       402       0.2 %
Cyalume Technologies Holdings, Inc. (Revolver) (e)     Aerospace & Defense       L+9.00 %     10.00 %     5/18/2020       1,528                   0.0 %
Diesel Direct Holdings, Inc. (f)     Energy: Oil & Gas       L+7.00 %     7.76 %     2/17/2020       5,225       5,217       5,277       2.2 %
EB Employee Solutions, LLC (f)     Services: Business       L+8.50 %     10.00 %     2/28/2019       3,370       3,324       3,263       1.4 %
Edge Systems Holdings Corporation     Healthcare & Pharmaceuticals       L+8.00 %     9.00 %     11/29/2021       3,740       3,667       3,665       1.5 %
Edge Systems Holdings Corporation (Revolver) (e)     Healthcare & Pharmaceuticals       L+8.00 %     9.00 %     11/29/2021       260                   0.0 %
Familia Dental Group Holdings, LLC (f)     Healthcare & Pharmaceuticals       L+8.00 %     8.76 %     4/8/2021       5,397       5,327       5,480       2.3 %
Familia Dental Group Holdings, LLC
(Delayed Draw)
    Healthcare & Pharmaceuticals       L+8.00 %     8.76 %     4/8/2021       519       519       527       0.2 %
Familia Dental Group Holdings, LLC (Revolver) (e)     Healthcare & Pharmaceuticals       L+8.00 %     8.76 %     4/8/2021       573       57       57       0.0 %
Forman Mills, Inc. (f)     Retail       L+7.50 %     8.50 %     10/4/2021       8,500       8,337       8,470       3.5 %
G&M Opco LLC (f)     Construction & Building       L+7.50 %     8.26 %     6/23/2020       3,006       2,951       3,066       1.3 %
InMobi Pte, Ltd. (Delayed Draw) (e) (k) (l)     Media: Advertising, Printing & Publishing       L+10.17 %     10.98 %     9/1/2018       10,000       6,667       6,587       2.7 %
Inteva Products, LLC     Automotive       L+8.50 %     9.75 %     9/8/2021       1,978       1,967       1,998       0.8 %
Jerry Lee Radio, LLC     Media: Broadcasting & Subscription       L+9.50 %     10.26 %     12/17/2020       13,407       13,127       13,675       5.7 %
Landpoint, LLC     Energy: Oil & Gas       L+12.75 %     12.00% Cash/
2.25% PIK
(m)     12/20/2019       2,632       2,602       2,526       1.1 %
Landpoint, LLC (Revolver) (e)     Energy: Oil & Gas       L+10.50 %     12.00 %     12/20/2019       313                   0.0 %
L.A.R.K. Industries, Inc.     Construction & Building       L+7.00 %     8.00 %     9/3/2019       6,257       6,169       6,341       2.6 %
Liftforward SPV II, LLC (e) (l)     Banking, Finance, Insurance, & Real Estate       L+10.75 %     11.51 %     11/10/2020       10,000       254       254       0.1 %
Luxury Optical Holdings Co.     Retail       L+11.50 %     9.00% Cash/
3.50% PIK
      9/12/2019       4,012       3,965       3,948       1.6 %

 

See Notes to Consolidated Financial Statements.

 

 11 

 

 

MONROE CAPITAL CORPORATION
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2016
(in thousands, except for units)

 

Portfolio Company (a)   Industry   Spread
Above
Index (b)
  Interest
Rate
  Maturity   Principal   Amortized
Cost
  Fair
Value (c)
  % of Net
Assets (d)
Luxury Optical Holdings Co. (Revolver) (e)     Retail       L+8.00 %     9.00% Cash       9/12/2019       273     $     $       0.0 %
Madison Logic, Inc. (f)     Services: Business       L+8.00 %     8.76 %     11/30/2021       10,500       10,291       10,610       4.4 %
Madison Logic, Inc. (Delayed Draw) (e) (k)     Services: Business       L+8.00 %     8.76 %     11/30/2021       4,818                   0.0 %
Madison Logic, Inc. (Revolver) (e)     Services: Business       L+8.00 %     8.76 %     11/30/2021       988                   0.0 %
Miles Media Group LLC     Hotels, Gaming & Leisure       L+11.00 %     10.00% Cash/
2.00% PIK
      3/24/2021       6,110       6,052       6,119       2.5 %
Miles Media Group LLC (Delayed Draw) (e) (k)     Hotels, Gaming & Leisure       L+11.00 %     10.00% Cash/
2.00% PIK
      3/24/2021       1,455                   0.0 %
Miles Media Group LLC (Revolver) (e)     Hotels, Gaming & Leisure       L+11.00 %     10.00% Cash/
2.00% PIK
      3/24/2021       320                   0.0 %
O’Brien Industrial Holdings, LLC     Metals & Mining       L+7.75 %     8.75 %     5/13/2019       5,286       5,219       5,268       2.2 %
Peerless Network, Inc. (f)     Telecommunications       L+8.50 %     9.18% Cash/
0.75% PIK
(n)     12/11/2020       3,500       3,431       3,430       1.4 %
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.)     Services: Consumer       L+5.50 %     6.50 %     7/1/2020       4,698       4,619       4,693       1.9 %
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.)     Services: Consumer       L+11.50 %     12.50 %     7/1/2020       4,849       4,765       4,805       2.0 %
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.) (Revolver) (e)     Services: Consumer       L+8.50 %     9.50 %     8/11/2017       236                   0.0 %
Precision Toxicology, LLC (f)     Healthcare & Pharmaceuticals       L+11.50 %     10.26% Cash/
2.00% PIK
      3/24/2020       4,242       4,186       4,244       1.8 %
Repay Holdings, LLC     Banking, Finance, Insurance & Real Estate       L+9.00 %     9.76 %     9/1/2021       12,000       11,802       11,934       5.0 %
Repay Holdings, LLC (Revolver) (e)     Banking, Finance, Insurance & Real Estate       L+9.00 %     9.76 %     9/1/2021       1,200                   0.0 %
Rockdale Blackhawk, LLC (g)     Healthcare & Pharmaceuticals       L+11.00 %     12.00 %     3/31/2020       10,923       10,155       10,933       4.5 %
Rockdale Blackhawk, LLC (Revolver) (e) (g)     Healthcare & Pharmaceuticals       L+11.00 %     12.00 %     3/31/2020       1,849       924       924       0.4 %
Rockdale Blackhawk, LLC (Capex) (g)     Healthcare & Pharmaceuticals       L+11.00 %     12.00 %     3/31/2020       565       565       565       0.2 %
Rocket Dog Brands, LLC (g)     Consumer Goods: Non-Durable       n/a       12.00% PIK       8/29/2019       1,124       1,125       464       0.2 %
Rocket Dog Brands, LLC (g)     Consumer Goods: Non-Durable       n/a       15.00% PIK       8/29/2019       407       402       365       0.2 %
Rocket Dog Brands, LLC (g)     Consumer Goods: Non-Durable       n/a       17.00% PIK       3/31/2017       225       225       225       0.1 %
SHI Holdings, Inc. (f) (g)     Healthcare & Pharmaceuticals       L+9.25 %     10.01 %     7/10/2019       2,625       2,592       2,625       1.1 %
SHI Holdings, Inc. (Revolver) (e) (g)     Healthcare & Pharmaceuticals       L+9.25 %     10.01 %     7/10/2019       1,773       1,188       1,203       0.5 %
Shields Land Company of Georgia, LLC (l)     Banking, Finance, Insurance & Real Estate       L+9.50 %     10.15 %     12/28/2017       2,450       2,425       2,445       1.0 %
Solaray, LLC     Consumer Goods: Non Durable       L+6.50 %     7.50 %     9/9/2023       3,297       3,265       3,280       1.4 %
Solaray, LLC (Delayed Draw) (e) (k)     Consumer Goods: Non Durable       L+6.50 %     7.50 %     9/9/2023       703                   0.0 %
SNI Companies (o)     Services: Business       L+8.00 %     9.00 %     12/31/2018       5,357       5,299       5,378       2.2 %
SNI Companies (Revolver) (e)     Services: Business       L+8.00 %     9.00 %     12/31/2018       1,250       313       313       0.1 %
Summit Container Corporation (f) (g)     Containers, Packaging & Glass       L+12.00 %     12.00% Cash/
2.00% PIK
      1/6/2019       3,624       3,582       3,550       1.5 %
Synergy Environmental Corporation (f)     Environmental Industries       L+8.00 %     8.76 %     4/29/2021       3,130       3,068       3,148       1.3 %
Synergy Environmental Corporation (f)     Environmental Industries       L+8.00 %     8.76 %     4/29/2021       523       513       526       0.2 %
Synergy Environmental Corporation (Delayed Draw) (e) (k)     Environmental Industries       L+8.00 %     8.76 %     4/29/2018       1,342                   0.0 %
Synergy Environmental Corporation (Revolver) (e)     Environmental Industries       L+8.00 %     8.76 %     4/29/2021       671       94       94       0.0 %
Tectum Holdings, Inc.     Automotive       L+4.75 %     5.75 %     8/24/2023       1,995       1,976       2,025       0.8 %
The Worth Collection, Ltd. (f)     Retail       L+8.50 %     9.26 %     9/29/2021       11,000       10,789       11,132       4.6 %
TPP Operating, Inc. (p)     Retail       L+6.00 %     7.50 %(i)     11/8/2018       9,370       9,330       1,799       0.7 %
TPP Operating, Inc. (p)     Retail       L+6.00 %     7.50 %(i)     11/8/2018       4,344       4,344       4,344       1.8 %
TPP Operating, Inc. (p)     Retail       L+9.61 %     11.11 %(i)     11/8/2018       2,756       2,756       2,756       1.1 %
TRG, LLC     Hotels, Gaming & Leisure       L+13.80 %     8.12% Cash/
6.30% PIK
(q)     3/31/2021       11,876       11,837       11,960       5.0 %
TRG, LLC (Revolver)     Hotels, Gaming & Leisure       L+9.50 %     10.12 %     3/31/2021       131       131       131       0.1 %
TRG, LLC (CapEx) (e)     Hotels, Gaming & Leisure       L+9.50 %     8.12% Cash/
2.00% PIK
      3/31/2021       1,609       943       946       0.4 %
Vacation Innovations, LLC (r)     Hotels, Gaming & Leisure       L+9.40 %     7.76% Cash/
2.42% PIK
(s)     8/20/2020       10,553       10,382       10,848       4.5 %
Vacation Innovations, LLC (Revolver) (e)     Hotels, Gaming & Leisure       L+8.50 %     7.76% Cash/
1.50% PIK
      8/20/2020       342                   0.0

 

See Notes to Consolidated Financial Statements.

 

 12 

 

 

MONROE CAPITAL CORPORATION
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2016
(in thousands, except for units)

 

Portfolio Company (a)   Industry   Spread
Above
Index (b)
  Interest
Rate
  Maturity   Principal   Amortized
Cost
  Fair
Value (c)
  % of Net
Assets (d)
Vacation Innovations, LLC (Delayed Draw) (e) (k)     Hotels, Gaming & Leisure       L+8.50 %     7.76% Cash/
1.50% PIK
      8/20/2020       2,037     $     $       0.0 %
Yandy Holding, LLC     Retail       L+9.00 %     10.00 %     9/30/2019       5,677       5,625       5,581       2.3 %
Yandy Holding, LLC (Revolver) (e)     Retail       L+9.00 %     10.00 %     9/30/2019       907                   0.0 %
Total Senior Secured Loans                                     322,496       280,324       275,253       114.3 %
Unitranche Loans                                                                
Collaborative Neuroscience Network, LLC (t)     Healthcare & Pharmaceuticals       L+11.50 %     13.00 %     12/27/2017       6,120       6,059       5,814       2.4 %
Collaborative Neuroscience Network, LLC     Healthcare & Pharmaceuticals       n/a       12.00% Cash/
3.00% PIK
      12/27/2017       286       286       286       0.1 %
Fabco Automotive Corporation     Automotive       L+11.25 %     8.00% Cash/
4.25% PIK
      4/3/2019       8,587       8,553       3,491       1.4 %
Gracelock Industries, LLC     Wholesale       L+13.74 %     11.00% Cash/
4.24% PIK
(u)     5/7/2019       4,888       4,816       4,500       1.9 %
Incipio Technologies, Inc. (v)     Consumer Goods: Non-Durable       L+6.00 %     7.00 %     12/26/2019       14,291       14,045       14,219       5.9 %
MooreCo, Inc.     Consumer Goods: Durable       L+14.50 %     13.50% Cash/
2.50% PIK
      12/27/2017       3,620       3,600       3,620       1.5 %
Output Services Group, Inc.     Services: Business       L+9.00 %     9.50% Cash/
1.00% PIK
      12/17/2020       6,500       6,432       6,520       2.7 %
Output Services Group, Inc.     Services: Business       L+9.00 %     9.50% Cash/
1.00% PIK
      12/17/2020       8,296       8,189       8,391       3.5 %
Playtime, LLC     Hotels, Gaming & Leisure       L+8.50 %     9.00% Cash/
1.00% PIK
      12/31/2021       5,405       5,381       4,797       2.0 %
Total Unitranche Loans                                     57,993       57,361       51,638       21.4 %
                                                                 
Junior Secured Loans                                                                
AIM Aerospace, Inc.     Aerospace & Defense       L+9.00 %     10.00 %     8/2/2022       5,000       4,933       5,040       2.1 %
Confie Seguros Holdings II Co.     Banking, Finance, Insurance & Real Estate       L+9.00 %     10.25 %     5/8/2019       8,594       8,215       8,547       3.5 %
CSM Bakery Supplies LLC     Beverage, Food & Tobacco       L+7.75 %