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 June 30, 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 August 8, 2017, the registrant had 20,239,957 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 June 30, 2017 (unaudited) and December 31, 2016 3
     
  Consolidated Statements of Operations for the three and six months ended June 30, 2017 (unaudited) and 2016 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2017 (unaudited) and 2016 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the six months ended June 30, 2017 (unaudited) and 2016 (unaudited) 6
     
  Consolidated Schedules of Investments as of June 30, 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 34
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 48
     
Item 4. Controls and Procedures 48
     
PART II. OTHER INFORMATION 49
     
Item 1. Legal Proceedings 49
     
Item 1A. Risk Factors 49
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49
     
Item 3. Defaults Upon Senior Securities 49
     
Item 4. Mine Safety Disclosures 49
     
Item 5. Other Information 49
     
Item 6. Exhibits 50
     
Signatures   51

 

  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)

 

   June 30, 2017   December 31, 2016 
   (unaudited)     
ASSETS          
Investments, at fair value:          
Non-controlled/non-affiliate company investments  $392,787   $353,980 
Non-controlled affiliate company investments   43,290    50,041 
Controlled affiliate company investments   9,472    8,899 
Total investments, at fair value (amortized cost of: $456,772 and $413,242, respectively)   445,549    412,920 
Cash   9,904    5,958 
Restricted cash   5,344    2,373 
Interest receivable   3,562    2,643 
Other assets   653    651 
Total assets   465,012    424,545 
           
LIABILITIES          
Debt:          
Revolving credit facility   93,845    129,000 
SBA debentures payable   85,600    51,500 
Total debt   179,445    180,500 
Less:  Unamortized deferred financing costs   (4,641)   (3,945)
Total debt, less unamortized deferred financing costs   174,804    176,555 
Secured borrowings, at fair value (proceeds of: $0 and $1,320, respectively)   -    1,314 
Interest payable   870    735 
Management fees payable   1,903    1,749 
Incentive fees payable   1,210    1,222 
Accounts payable and accrued expenses   1,917    2,120 
Total liabilities   180,704    183,695 
Net assets  $284,308   $240,850 
           
Commitments and contingencies (See Note 10)          
           
ANALYSIS OF NET ASSETS          
           
Common stock, $0.001 par value, 100,000 shares authorized, 20,240 and 16,582 shares issued and outstanding, respectively  $20   $17 
Capital in excess of par value   286,269    233,526 
Undistributed net investment income (accumulated distributions in excess of net investment income)   6,278    7,037 
Accumulated net realized gain (loss) on investments and secured borrowings   2,981    587 
Accumulated net unrealized gain (loss) on investments, secured borrowings and foreign currency borrowings   (11,240)   (317)
Total net assets  $284,308   $240,850 
           
Net asset value per share  $14.05   $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 June 30,   Six months ended June 30, 
   2017   2016   2017   2016 
Investment income:                    
Interest income:                    
Non-controlled/non-affiliate company investments  $10,053   $8,449   $20,108   $16,722 
Non-controlled affiliate company investments   1,111    1,092    2,307    2,165 
Controlled affiliate company investments   217    10    394    10 
Total interest income   11,381    9,551    22,809    18,897 
Dividend income:                    
Non-controlled/non-affiliate company investments   250    250    500    500 
Non-controlled affiliate company investments   -    801    -    2,413 
Total dividend income   250    1,051    500    2,913 
Fee income:                    
Non-controlled/non-affiliate company investments   637    516    965    847 
Total fee income   637    516    965    847 
Total investment income   12,268    11,118    24,274    22,657 
                     
Operating expenses:                    
Interest and other debt financing expenses   2,184    1,773    4,194    3,464 
Base management fees   1,903    1,504    3,708    3,004 
Incentive fees   1,460    1,319    2,750    3,059 
Professional fees   286    238    577    445 
Administrative service fees   301    304    631    632 
General and administrative expenses   259    182    468    346 
Excise taxes   -    -    -    87 
Directors' fees   37    39    74    74 
Expenses before incentive fee waiver   6,430    5,359    12,402    11,111 
Incentive fee waiver   (250)   -    (250)   - 
Total expenses, net of incentive fee waiver   6,180    5,359    12,152    11,111 
Net investment income   6,088    5,759    12,122    11,546 
                     
Net gain (loss) on investments, secured borrowings and foreign currency borrowings:                    
Net realized gain (loss):                    
Non-controlled/non-affiliate company investments   2,161    -    2,328    587 
Secured borrowings   66    -    66    - 
Net realized gain (loss)   2,227    -    2,394    587 
                     
Net change in unrealized gain (loss):                    
Non-controlled/non-affiliate company investments   497    (261)   689    (1,120)
Non-controlled affiliate company investments   (7,192)   1,368    (9,356)   3,196 
Controlled affiliate company investments   (575)   (1,648)   (2,234)   (1,075)
Secured borrowings   (5)   59    (6)   87 
Foreign currency borrowings   (16)   -    (16)   - 
Net change in unrealized gain (loss)   (7,291)   (482)   (10,923)   1,088 
                     
Net gain (loss) on investments, secured borrowings and foreign currency borrowings   (5,064)   (482)   (8,529)   1,675 
                     
Net increase (decrease) in net assets resulting from operations  $1,024   $5,277   $3,593   $13,221 
                     
Per common share data:                    
Net investment income per share - basic and diluted  $0.35   $0.44   $0.71   $0.89 
Net increase in net assets resulting from operations per share - basic and diluted  $0.06   $0.41   $0.21   $1.02 
Weighted average common shares outstanding - basic and diluted   17,369    13,008    16,984    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
excess

 

Undistributed net
investment income
(accumulated distributions

in excess

of net

   Accumulated net
realized gain (loss) on investments
and
  

Accumulated net
unrealized
gain (loss) on
investments,
secured borrowings and foreign

     
   Number of
shares
   Par
value
  

of par
value

  

investment
income)

  

secured

borrowings

  currency
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   -    -    -    11,546    587    1,088    13,221 
Distributions to stockholders:                                   
Distributions from net investment income   -    -    -    (9,106)   -    -    (9,106)
Balances at June 30, 2016   13,008   $13   $184,419   $4,132   $587   $(501)  $188,650 
                                    
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   -    -    -    12,122    2,394    (10,923)   3,593 
Issuance of common stock, net of offering and underwriting costs   3,624    3    52,218    -    -    -    52,221 
Distributions to stockholders:                                   
Stock issued in connection with dividend reinvestment plan   34    -    525    (525)   -    -    - 
Distributions from net investment income   -    -    -    (12,356)   -    -    (12,356)
Balances at June 30, 2017   20,240   $20   $286,269   $6,278   $2,981   $(11,240)  $284,308 

 

See Notes to Consolidated Financial Statements.

  5 

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

(in thousands)

  

   Six months ended June 30, 
   2017   2016 
         
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $3,593   $13,221 
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 (gain) loss on investments   10,901    (1,001)
Net change in unrealized (gain) loss on secured borrowings   6    (87)
Net change in unrealized (gain) loss on foreign currency borrowings   16    - 
Net realized (gain) loss on investments   (2,328)   (587)
Net realized (gain) loss on secured borrowings   (66)   - 
Payment-in-kind interest income   (1,018)   (830)
Net accretion of discounts and amortization of premiums   (746)   (754)
Proceeds from principal payments and sales of investments   75,460    47,383 
Purchases of investments   (114,898)   (45,928)
Amortization of deferred financing costs   486    381 
Changes in operating assets and liabilities:          
Interest receivable   (919)   (435)
Other assets   (2)   168 
Payable for open trades   -    (5,297)
Interest payable   135    (43)
Management fees payable   154    1 
Incentive fees payable   (12)   303 
Accounts payable and accrued expenses   (203)   67 
Directors’ fees payable   -    (74)
Net cash provided by (used in) operating activities   (29,441)   6,488 
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   68,329    24,000 
Repayments of revolving credit facility   (103,500)   (20,500)
SBA debentures borrowings   34,100    - 
Payments of deferred financing costs   (1,182)   (849)
Repayments on secured borrowings   (1,254)   (277)
Proceeds from shares sold, net of offering and underwriting costs   52,221    - 
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $525 and $0, respectively   (12,356)   (9,106)
Net cash provided by (used in) financing activities   36,358    (6,732)
           
Net increase (decrease) in Cash and Restricted Cash   6,917    (244)
Cash and Restricted Cash, beginning of period (1)   8,331    13,866 
Cash and Restricted Cash, end of period (2)  $15,248   $13,622 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $3,473   $2,974 
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 $9,904 and $5,344, respectively, from the consolidated statement of assets and liabilities as of June 30, 2017. Represents cash and restricted cash of $5,483 and $8,139, respectively, from the consolidated statement of assets and liabilities as of June 30, 2016.

 

See Notes to Consolidated Financial Statements.

 

  6 

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 2017

(in thousands, except for shares and 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.   Media: Advertising, Printing & Publishing   L+8.50%     9.55 %     12/22/2021       4,969      $ 4,877      $ 5,013       1.8 %
AdTheorent, Inc. (Revolver) (e)   Media: Advertising, Printing & Publishing   L+8.50%     9.55 %     12/22/2021       515       232       232       0.1 %
All Holding Company, LLC (f)   Beverage, Food & Tobacco   L+7.00%     8.23 %     11/15/2021       5,397       5,304       5,505       1.9 %
American Community Homes, Inc. (g)   Banking, Finance, Insurance & Real Estate   L+8.00%     9.50 %     7/22/2019       7,667       7,570       7,743       2.7 %
American Community Homes, Inc. (g)   Banking, Finance, Insurance & Real Estate   L+12.50%     9.50% Cash/
4.50% PIK
      7/22/2019       4,314       4,266       4,357       1.5 %
American Community Homes, Inc. (g)   Banking, Finance, Insurance & Real Estate   L+12.50%     9.50% Cash/
4.50% PIK
    n/a (h)    530     522     530     0.2
American Community Homes, Inc. (g)   Banking, Finance, Insurance & Real Estate   L+8.00%     9.50 %     7/22/2019       444       432       449       0.2 %
American Community Homes, Inc. (g)   Banking, Finance, Insurance & Real Estate   L+12.50%     9.50% Cash/
4.50% PIK
      7/22/2019       223       217       225       0.1 %
American Community Homes, Inc. (Delayed Draw)(e) (g) (l)   Banking, Finance, Insurance & Real Estate   L+8.00%     9.50 %     7/22/2019       444                   0.0 %
American Community Homes, Inc. (Delayed Draw)(e) (g) (l)   Banking, Finance, Insurance & Real Estate   L+12.50%     9.50% Cash/
4.50% PIK
      7/22/2019       222                   0.0 %
Answers Finance, LLC   High Tech Industries   L+5.00%     6.23 %     4/15/2021       254       252       250       0.1 %
APCO Worldwide, Inc.   Services: Business   L+8.00%     9.23 %     6/30/2022       5,000       4,900       4,900       1.7 %
Bartlett Reserve Durham, LLC (j)   Banking, Finance, Insurance & Real Estate   L+9.00%     10.16 %     6/1/2018       6,468       6,355       6,346       2.2 %
BC Equity Ventures LLC   Hotels, Gaming & Leisure   L+6.50%     7.73 %     8/31/2022       2,599       2,552       2,625       0.9 %
BCC Software, LLC (f)   High Tech Industries   L+8.00%     9.23 %     6/20/2019       3,163       3,129       3,163       1.1 %
BCC Software, LLC (Revolver) (e)   High Tech Industries   L+8.00%     9.23 %     6/20/2019       469                   0.0 %
Beaver-Visitec International Holdings, Inc.   Healthcare & Pharmaceuticals   L+5.00%     6.30 %     8/19/2023       4,962       4,918       4,963       1.7 %
Bluestem Brands, Inc.   Consumer Goods: Non-Durable   L+7.50%     8.73 %     11/6/2020       2,678       2,659       1,905       0.7 %
Cali Bamboo, LLC   Construction & Building   L+8.50%     9.73 %     7/10/2020       5,346       5,283       5,346       1.9 %
Cali Bamboo, LLC (Revolver) (e)   Construction & Building   L+8.50%     9.73 %     7/10/2020       1,624       1,212       1,212       0.4 %
California Pizza Kitchen, Inc.   Beverage, Food & Tobacco   L+6.00%     7.30 %     8/23/2022       6,947       6,878       6,958       2.4 %
Corbett Technology Solutions, Inc. (f)   High Tech Industries   L+7.00%     8.23 %     11/7/2021       4,388       4,329       4,475       1.6 %
Corbett Technology Solutions, Inc. (Revolver) (e)   High Tech Industries   L+7.00%     8.23 %     11/7/2021       867                   0.0 %
Cornerstone Detention Products, Inc. (k)   Construction & Building   L+10.50%     10.73% Cash/
1.00% PIK
      4/8/2019       3,569       3,541       3,490       1.2 %
Cornerstone Detention Products, Inc. (Revolver) (e)   Construction & Building   L+9.50%     10.73 %     4/8/2019       400                   0.0 %
CRCI Holdings, Inc.   Utilities: Electric   L+5.50%     6.80 %     8/31/2023       2,814       2,788       2,835       1.0 %
Cyalume Technologies Holdings, Inc. (f)   Aerospace & Defense   L+9.00%     10.23 %     5/18/2020       3,929       3,860       4,046       1.4 %
Cyalume Technologies Holdings, Inc.   Aerospace & Defense   L+9.00%     10.23 %     5/18/2020       350       350       361       0.1 %
Cyalume Technologies Holdings, Inc. (Revolver)(e)   Aerospace & Defense   L+9.00%     10.23 %     5/18/2020       1,528                   0.0 %
Destination Media, Inc. (f)   Media: Advertising, Printing & Publishing   L+6.50%     7.73 %     4/7/2022       7,950       7,835       7,942       2.8 %
Destination Media, Inc. (Revolver) (e)   Media: Advertising, Printing & Publishing   L+6.50%     7.73 %     4/7/2022       542                   0.0 %
Diesel Direct Holdings, Inc. (f)   Energy: Oil & Gas   L+7.00%     8.23 %     2/17/2020       5,087       5,087       5,138       1.8 %
EB Employee Solutions, LLC (f)   Services: Business   L+8.50%     10.00 %     2/28/2019       3,244       3,208       3,138       1.1 %
Echelon Funding I, LLC (Delayed Draw) (e) (j) (l)   Banking, Finance, Insurance & Real Estate   L+10.25%     11.30 %     2/24/2021       15,000       14,981       15,187       5.3 %
Edge Systems Holdings Corp.   Healthcare & Pharmaceuticals   L+8.00%     9.23 %     12/1/2021       3,453       3,391       3,503       1.2 %
Edge Systems Holdings Corp. (Revolver) (e)   Healthcare & Pharmaceuticals   L+8.00%     9.23 %     12/1/2021       260                   0.0 %
Energy Services Group, LLC   High Tech Industries   L+9.82%     10.99 %     5/4/2022       4,620       4,563       4,638       1.6 %
Energy Services Group, LLC (j) (m)   High Tech Industries   L+9.82%     10.82 %     5/4/2022       2,405       2,358       2,410       0.8 %
Energy Services Group, LLC (Delayed Draw)(e) (l)   High Tech Industries   L+9.82%     11.00 %     5/4/2022       1,313       1,096       1,117       0.4 %
Familia Dental Group Holdings, LLC (f)   Healthcare & Pharmaceuticals   L+8.00%     9.23 %     4/8/2021       5,328       5,259       5,371       1.9 %
Familia Dental Group Holdings, LLC   Healthcare & Pharmaceuticals   L+8.00%     9.23 %     4/8/2021       512       512       516       0.2 %
Familia Dental Group Holdings, LLC (Revolver) (e)   Healthcare & Pharmaceuticals   L+8.00%     9.23 %     4/8/2021       573       229       229       0.1 %
Forman Mills, Inc. (f)   Retail   L+7.50%     8.73 %     10/4/2021       8,500       8,351       8,398       3.0 %
InMobi Pte, Ltd. (Delayed Draw) (e) (j) (l) (n)   Media: Advertising, Printing & Publishing   L+10.17%     11.36 %     9/1/2018       10,000       6,667       6,860       2.4 %
Jerry Lee Radio, LLC   Media: Broadcasting & Subscription   L+9.50%     10.73 %     12/17/2020       12,417       12,185       12,665       4.5 %
Landpoint, LLC   Energy: Oil & Gas   L+12.75%     12.00% Cash/
2.25%  PIK
(o)     12/20/2019       2,462       2,440       2,393       0.9 %
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%     9.55 %     9/3/2019       8,274       8,158       8,295       2.9 %
Liftforward SPV II, LLC (e) (j)   Banking, Finance, Insurance & Real Estate   L+10.75%     11.98 %     11/10/2020       10,000       5,209       5,349       1.9 %

 

See Notes to Consolidated Financial Statements.

 

  7 

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS  – (continued)

(unaudited)

June 30, 2017

(in thousands, except for shares and 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.   Retail   L+11.50%     9.23% Cash/
3.50%  PIK
      9/12/2019       4,084     4,045     3,854       1.4 %
Luxury Optical Holdings Co. (Revolver) (e)   Retail   L+8.00%     9.23 %     9/12/2019       273       123       116       0.0 %
Madison Logic, Inc. (f)   Services: Business   L+8.00%     9.23 %     11/30/2021       10,369       10,180       10,535       3.7 %
Madison Logic, Inc. (Delayed Draw) (e) (l)   Services: Business   L+8.00%     9.23 %     11/30/2021       4,818                   0.0 %
Madison Logic, Inc. (Revolver) (e)   Services: Business   L+8.00%     9.23 %     11/30/2021       988                   0.0 %
MFG Chemical, LLC (f)   Chemicals, Plastics, & Rubber   L+6.00%     7.23 %     6/23/2022       8,855       8,723       8,723       3.1 %
MFG Chemical, LLC (Revolver) (e)   Chemicals, Plastics, & Rubber   L+6.00%     7.23 %     6/23/2022       1,780       831       818       0.3 %
Mid-West Wholesale Hardware Co. (f)   Wholesale   L+7.50%     8.73 %     2/9/2022       11,940       11,716       11,845       4.2 %
Mid-West Wholesale Hardware Co. (Revolver) (e)   Wholesale   L+7.50%     8.73 %     2/9/2022       4,421       1,453       1,442       0.5 %
Miles Partnership LLC   Hotels, Gaming & Leisure   L+11.00%     10.30% Cash/
2.00% PIK
      3/24/2021       5,926       5,880       5,943       2.1 %
Miles Partnership LLC (Delayed Draw) (e) (l)   Hotels, Gaming & Leisure   L+11.00%     10.30% Cash/
2.00% PIK
      3/24/2021       1,418       1,071       1,073       0.4 %
Miles Partnership LLC (Revolver) (e)   Hotels, Gaming & Leisure   L+11.00%     10.30% Cash/
2.00% PIK
      3/24/2021       320                   0.0 %
Newforma, Inc. (f)   High Tech Industries   L+7.50%     8.73 %     6/30/2022       15,000       14,775       14,775       5.2 %
Newforma, Inc. (Revolver) (e)   High Tech Industries   L+7.50%     8.73 %     6/30/2022       1,250                   0.0 %
O'Brien Industrial Holdings, LLC   Metals & Mining   L+7.75%     8.98 %     5/13/2019       5,286       5,232       5,392       1.9 %
Peerless Network, Inc. (f)   Telecommunications   L+9.25%     9.55% Cash/
0.75% PIK
(p)     12/11/2020       3,500       3,437       3,514       1.2 %
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.)   Services: Consumer   L+5.50%     6.80 %     7/1/2020       4,560       4,494       4,585       1.6 %
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.)   Services: Consumer   L+11.50%     12.80 %     7/1/2020       4,780       4,707       4,765       1.7 %
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+10.00%     9.73% Cash/
1.50% PIK
      3/24/2020       3,724       3,683       3,717       1.3 %
Priority Ambulance, LLC (f)   Healthcare & Pharmaceuticals   L+7.00%     8.30 %     4/12/2022       7,000       6,865       7,025       2.5 %
Priority Ambulance, LLC (Revolver) (e)   Healthcare & Pharmaceuticals   L+7.00%     8.30 %     4/12/2022       3,345                   0.0 %
Q-Tragon Holdings, LLC (f)   Services: Business   L+7.00%     8.23 %     5/2/2022       4,000       3,943       4,008       1.4 %
Q-Tragon Holdings, LLC (Revolver) (e)   Services: Business   L+7.00%     8.23 %     5/2/2022       308       62       62       0.0 %
Repay Holdings, LLC   Banking, Finance, Insurance & Real Estate   L+7.75%     8.98 %     9/1/2021       11,700       11,524       11,799       4.2 %
Repay Holdings, LLC (Revolver) (e)   Banking, Finance, Insurance & Real Estate   L+7.75%     8.98 %     9/1/2021       1,200                   0.0 %
Rockdale Blackhawk, LLC (g)   Healthcare & Pharmaceuticals   L+11.00%     12.23 %     3/31/2020       10,923       10,251       10,802       3.8 %
Rockdale Blackhawk, LLC (Capex) (g)   Healthcare & Pharmaceuticals   L+11.00%     12.23 %     3/31/2020       549       549       543       0.2 %
Rockdale Blackhawk, LLC (Revolver) (g)   Healthcare & Pharmaceuticals   L+11.00%     12.23 %     3/31/2020       1,849       1,849       1,825       0.6 %
Rocket Dog Brands, LLC (g)   Consumer Goods: Non-Durable   n/a     12.00% PIK (i)     8/29/2019       1,157       1,157       243       0.1 %
Rocket Dog Brands, LLC (g)   Consumer Goods: Non-Durable   n/a     15.00% PIK (i)     8/29/2019       422       416             0.0 %
Rocket Dog Brands, LLC (g)   Consumer Goods: Non-Durable   n/a     17.00% PIK (i)     9/30/2017       235       235       176       0.1 %
SHI Holdings, Inc. (f) (g)   Healthcare & Pharmaceuticals   L+9.75%     10.98 %     7/10/2019       2,625       2,600       2,625       0.9 %
SHI Holdings, Inc. (Revolver) (e) (g)   Healthcare & Pharmaceuticals   L+9.75%     10.98 %     7/10/2019       2,045       1,913       1,926       0.7 %
Solaray, LLC   Consumer Goods: Non-Durable   L+6.50%     7.72 %     9/9/2023       3,272       3,242       3,256       1.2 %
Solaray, LLC (Delayed Draw) (e) (l)   Consumer Goods: Non-Durable   L+6.50%     7.79 %     9/9/2023       703       506       504       0.2 %
Summit Container Corporation (f) (g)   Containers, Packaging & Glass   L+12.00%     12.00% Cash/
2.00% PIK
      1/6/2019       3,557       3,529       3,397       1.2 %
Synergy Environmental Corporation (f)   Environmental Industries   L+8.00%     9.23 %     4/29/2021       3,091       3,029       3,126       1.1 %
Synergy Environmental Corporation (f)   Environmental Industries   L+8.00%     9.23 %     4/29/2021       517       506       523       0.2 %
Synergy Environmental Corporation (Delayed Draw) (e) (l)   Environmental Industries   L+8.00%     9.23 %     4/29/2018       1,342                   0.0 %
Synergy Environmental Corporation (Revolver) (e)   Environmental Industries   L+8.00%     9.23 %     4/29/2021       671       47       47       0.0 %
The Worth Collection, Ltd. (f)   Retail   L+8.50%     9.73 %     9/29/2021       10,725       10,537       10,553       3.7 %
TPP Operating, Inc. (q)   Retail   L+6.00%     7.50% PIK  (i)     11/8/2018       9,370       9,330       300       0.1 %
TPP Operating, Inc. (q)   Retail   L+6.00%     7.50 %(i)     11/8/2018       5,324       5,324       4,589       1.6 %
TPP Operating, Inc. (q)   Retail   L+9.61%     11.11 %(i)     11/8/2018       4,583       4,583       4,583       1.6 %
TRG, LLC   Hotels, Gaming & Leisure   L+14.10%     8.55% Cash/
6.60% PIK
 (r)     3/31/2021       11,850       11,818       11,963       4.2 %
TRG, LLC (CapEx) (e)   Hotels, Gaming & Leisure   L+9.50%     8.55% Cash/
2.00% PIK
    3/31/2021       1,619       953       963       0.3 %
TRG, LLC (Revolver)   Hotels, Gaming & Leisure   L+9.50%     10.55 %     3/31/2021       131       131       131       0.0 %
Vacation Innovations, LLC (s)   Hotels, Gaming & Leisure   L+8.79%     8.23% Cash/
1.79% PIK
 (t)     8/20/2020       10,029       9,887       10,094       3.6 %
Vacation Innovations, LLC (Delayed Draw) (e) (l)   Hotels, Gaming & Leisure   L+7.50%     8.23% Cash/
0.50% PIK
      8/20/2020       2,037                   0.0 %
Vacation Innovations, LLC (Revolver) (e)   Hotels, Gaming & Leisure   L+7.50%     8.23% Cash/
0.50% PIK
      8/20/2020       342                   0.0 %
Yandy Holding, LLC   Retail   L+9.00%     10.23 %     9/30/2019       5,368       5,327       5,253       1.8 %
Yandy Holding, LLC (Revolver) (e)   Retail   L+9.00%     10.23 %     9/30/2019       907                   0.0 %
Total Senior Secured Loans                             400,657       358,418       351,491       123.6 %
                                                         
Unitranche Loans                                                        
Collaborative Neuroscience Network, LLC   Healthcare & Pharmaceuticals   L+11.50%     13.00 %     12/27/2017       6,120       6,069       5,820       2.0 %
Collaborative Neuroscience Network, LLC   Healthcare & Pharmaceuticals   n/a     12.00% Cash/
3.00% PIK
      n/a (h)      290       290       290       0.1 %
Collaborative Neuroscience Network, LLC (Revolver)   Healthcare & Pharmaceuticals   L+10.00%     11.23 %     12/27/2017       200       190       195       0.1 %

 

See Notes to Consolidated Financial Statements.

 

  8 

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS  – (continued)

(unaudited)

June 30, 2017

(in thousands, except for shares and units)

 

Portfolio Company (a)   Industry   Spread
Above
Index (b)
  Interest
Rate
    Maturity     Principal     Amortized
Cost
   

Fair

Value (c)

    % of Net
Assets (d)
 
Fabco Automotive Corporation   Automotive   L+4.50%     5.73 %     4/3/2019       3,538      $ 1,852      $ 3,430       1.2 %
Fabco Automotive Corporation   Automotive   L+11.25%     8.23% Cash/
4.25% PIK
      4/3/2019       8,774       8,747       2,817       1.0 %
Fabco Automotive Corporation (Revolver) (e)   Automotive   L+4.00%     5.23 %     4/3/2019       2,234       2,199       2,199       0.8 %
Gracelock Industries, LLC   Wholesale   L+13.74%     11.00% Cash/
4.24% PIK
 (u)     5/7/2019       4,721       4,664       4,730       1.7 %
Incipio Technologies, Inc. (v)   Consumer Goods: Non-Durable   L+7.50%     8.73 %     12/26/2019       13,916       13,712       13,651       4.8 %
Playtime, LLC   Hotels, Gaming & Leisure   L+7.50%     9.00 %     12/31/2021       4,484       4,475       4,170       1.4 %
Total Unitranche Loans                             44,277       42,198       37,302       13.1 %
                                                         
Junior Secured Loans                                                        
AIM Aerospace, Inc.   Aerospace & Defense   L+9.00%     10.17 %     8/2/2022       5,000       4,938       4,973       1.7 %
Answers Finance, LLC   High Tech Industries   P+7.90%     9.00 %     9/15/2021       396       381       388       0.1 %
Confie Seguros Holdings II Co.   Banking, Finance, Insurance & Real Estate   L+9.75%     11.05 %     5/8/2019       8,594       8,285       8,479       3.0 %
CSM Bakery Supplies LLC   Beverage, Food & Tobacco   L+7.75%     8.90 %     7/3/2021       5,792       5,792       5,054       1.8 %
Education Corporation of America   Services: Consumer   L+11.00%     12.30 %     9/30/2017       625       617       625       0.2 %
Mergermarket USA, Inc.   Media: Broadcasting & Subscription   L+6.50%     7.58 %     12/19/2021       4,500       4,409       4,500       1.6 %
Micro Holdings Corp.   High Tech Industries   L+7.50%     8.73 %     7/8/2022       5,590       5,485       5,672       2.0 %
Pre-Paid Legal Services, Inc. (Legal Shield)   Services: Consumer   L+9.00%     10.25 %     7/1/2020       3,000       3,000       3,024       1.1 %
Rocket Dog Brands, LLC (g)   Consumer Goods: Non-Durable   n/a     15.00% PIK  (i)     5/1/2020       2,011       2,011             0.0 %
SCP TPZ Acquisition, Inc.   Media: Diversified & Production   L+8.25%     9.47 %     5/29/2022       5,000       4,942       4,994       1.8 %
Total Junior Secured Loans                             40,508       39,860       37,709       13.3 %
                                                         
Equity Securities                                                        
AdTheorent, Inc. (128,866 units) (w)   Media: Advertising, Printing & Publishing       (x)                 129       173       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                   1,271       0.5 %
Answers Finance, LLC (76,539 shares of common stock) (w)   Services: Business         (x)                 2,413       1,180       0.4 %
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)                       615       0.2 %
Education Corporation of America - Series G Preferred Stock (8,333
shares) (w)
  Services: Consumer   n/a     12.00 %                 8,125       8,283       2.9 %
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) (j) (n) (w)
  Media: Advertising, Printing & Publishing       (x)     9/18/2025                   215       0.1 %
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 %
Playtime, LLC - Preferred Units (8,665 units) (w)   Hotels, Gaming & Leisure       (x)                 200       15       0.0 %
Rockdale Blackhawk, LLC - LLC Units (11.56% of the LLC interest) (g)   Healthcare & Pharmaceuticals                         1,093       6,533       2.3 %
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       589       0.2 %
Summit Container Corporation (warrant to purchase up to 19.50% of the
equity) (g)
  Containers, Packaging & Glass       (x)     1/6/2024                   56       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) (q)   Retail       (x)                               0.0 %
TPP Operating, Inc. (40 shares of common stock) (q)   Retail       (x)                 3,255             0.0 %
Total Equity Securities                                     16,296       19,047       6.7 %
TOTAL INVESTMENTS                               $ 456,772     $ 445,549     156.7 %

 

See Notes to Consolidated Financial Statements.

 

  9 

 

 

 

 

(a)All of our investments are issued by eligible 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 unless otherwise noted.

 

(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 June 30, 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 $284,308 as of June 30, 2017.

 

(e)All or a portion of this commitment was unfunded at June 30, 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.

 

(i)This position was on non-accrual status as of June 30, 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)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 June 30, 2017, non-qualifying assets totaled 7.83% of the Company’s total assets.

 

(k)A portion of this loan (principal of $2,141) 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.

 

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

 

(m)This term loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date.

 

(n)InMobi Pte, Ltd is an international company headquartered in California.

 

(o)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.

 

(p)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.

 

(q)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.

 

(r)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 4.60% per annum.

 

(s)A portion of this loan (principal of $4,429) 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.

 

(t)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 1.29% per annum.

 

(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 $5,102) 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.

 

(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 shares and 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 shares and 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 shares and 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 %