UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

 

For the quarterly period ended March 31, 2018

 

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, a smaller reporting company, or an emerging growth 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 ¨    

 

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. ¨

 

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 7, 2018, 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 March 31, 2018 (unaudited) and December 31, 2017 3
     
  Consolidated Statements of Operations for the three months ended March 31, 2018 (unaudited) and 2017 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2018 (unaudited) and 2017 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the three months ended March 31, 2018 (unaudited) and 2017 (unaudited) 6
     
  Consolidated Schedules of Investments as of March 31, 2018 (unaudited) and December 31, 2017 7
     
  Notes to Consolidated Financial Statements (unaudited) 23
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 47
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 65
     
Item 4. Controls and Procedures 65
     
PART II. OTHER INFORMATION 66
     
Item 1. Legal Proceedings 66
     
Item 1A. Risk Factors 66
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 66
     
Item 3. Defaults Upon Senior Securities 66
     
Item 4. Mine Safety Disclosures 66
     
Item 5. Other Information 66
     
Item 6. Exhibits 67
     
Signatures   68

 

 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, 2018   December 31, 2017 
   (unaudited)     
ASSETS          
Investments, at fair value:          
Non-controlled/non-affiliate company investments  $426,058   $425,747 
Non-controlled affiliate company investments   53,643    58,751 
Controlled affiliate company investments   16,333    9,640 
Total investments, at fair value (amortized cost of: $516,121 and $507,580, respectively)   496,034    494,138 
Cash   3,070    4,332 
Restricted cash   7,117    2,867 
Interest receivable   5,756    5,335 
Other assets   727    760 
Total assets   512,704    507,432 
           
LIABILITIES          
Debt:          
Revolving credit facility   125,584    117,092 
SBA debentures payable   112,800    109,520 
Total debt   238,384    226,612 
Less: Unamortized deferred financing costs   (4,468)   (4,670)
Total debt, less unamortized deferred financing costs   233,916    221,942 
Interest payable   795    1,535 
Management fees payable   2,163    2,064 
Incentive fees payable   761    1,157 
Directors' fees payable   37    - 
Accounts payable and accrued expenses   2,027    2,035 
Total liabilities   239,699    228,733 
Net assets  $273,005   $278,699 
           
Commitments and contingencies (See Note 10)          
           
ANALYSIS OF NET ASSETS          
Common stock, $0.001 par value, 100,000 shares authorized, 20,240 and 20,240 shares issued and outstanding, respectively  $20   $20 
Capital in excess of par value   286,141    286,141 
Undistributed net investment income (accumulated distributions in excess of net investment income)   8,088    6,707 
Accumulated net realized gain (loss) on investments, secured borrowings and foreign currency transactions   (360)   (372)
Accumulated net unrealized gain (loss) on investments, secured borrowings and foreign currency borrowings   (20,884)   (13,797)
Total net assets  $273,005   $278,699 
           
Net asset value per share  $13.49   $13.77 

 

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, 
   2018   2017 
Investment income:          
Interest income:          
Non-controlled/non-affiliate company investments  $11,963   $10,055 
Non-controlled affiliate company investments   1,828    1,196 
Controlled affiliate company investments   -    177 
Total interest income   13,791    11,428 
Dividend income:          
Non-controlled/non-affiliate company investments   260    250 
Controlled affiliate company investments   175    - 
Total dividend income   435    250 
Fee income:          
Non-controlled/non-affiliate company investments   724    328 
Total fee income   724    328 
Total investment income   14,950    12,006 
           
Operating expenses:          
Interest and other debt financing expenses   2,706    2,010 
Base management fees   2,163    1,805 
Incentive fees   761    1,290 
Professional fees   307    291 
Administrative service fees   324    330 
General and administrative expenses   176    209 
Excise taxes   11    - 
Directors' fees   37    37 
Total expenses   6,485    5,972 
Net investment income   8,465    6,034 
           
Net gain (loss) on investments, secured borrowings, foreign currency transactions and foreign currency borrowings:          
Net realized gain (loss):          
Non-controlled/non-affiliate company investments   -    167 
Foreign currency transactions   12    - 
Net realized gain (loss)   12    167 
           
Net change in unrealized gain (loss):          
Non-controlled/non-affiliate company investments   (165)   192 
Non-controlled affiliate company investments   (6,923)   (2,164)
Controlled affiliate company investments   443    (1,659)
Secured borrowings   -    (1)
Foreign currency borrowings   (442)   - 
Net change in unrealized gain (loss)   (7,087)   (3,632)
           
Net gain (loss) on investments, secured borrowings, foreign currency transactions and foreign currency borrowings   (7,075)   (3,465)
           
Net increase (decrease) in net assets resulting from operations  $1,390   $2,569 
           
Per common share data:          
Net investment income per share - basic and diluted  $0.42   $0.36 
Net increase (decrease) in net assets resulting from operations per share - basic and diluted  $0.07   $0.15 
Weighted average common shares outstanding - basic and diluted   20,240    16,594 

 

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

Number 

of shares

  

Par

value

  

excess of

par value

  

investment

income)

  

foreign currency

transactions

  

currency

borrowings

  

Total

net assets

 
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 
                                    
Balances at December 31, 2017   20,240   $20   $286,141   $6,707   $(372)  $(13,797)  $278,699 
Net increase (decrease) in net assets resulting from operations   -    -    -    8,465    12    (7,087)   1,390 
Distributions to stockholders:                                   
Distributions from net investment income   -    -    -    (7,084)   -    -    (7,084)
Balances at March 31, 2018   20,240   $20   $286,141   $8,088   $(360)  $(20,884)  $273,005 

 

See Notes to Consolidated Financial Statements.

 

 5 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

(in thousands)

 

   Three months ended March 31, 
   2018   2017 
         
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $1,390   $2,569 
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   6,645    3,631 
Net change in unrealized (gain) loss on secured borrowings   -    1 
Net change in unrealized (gain) loss on foreign currency borrowings   442    - 
Net realized (gain) loss on investments   -    (167)
Net realized (gain) on foreign currency transactions   (12)   - 
Payment-in-kind interest income   (329)   (613)
Payment-in-kind dividend income   (260)   - 
Net accretion of discounts and amortization of premiums   (1,032)   (388)
Proceeds from principal payments and sales of investments   25,559    33,844 
Purchases of investments   (32,479)   (41,536)
Amortization of deferred financing costs   281    231 
Changes in operating assets and liabilities:          
Interest receivable   (421)   (413)
Other assets   33    (803)
Interest payable   (740)   85 
Management fees payable   99    56 
Incentive fees payable   (396)   243 
Directors' fees payable   37    37 
Accounts payable and accrued expenses   (8)   (203)
Net cash provided by (used in) operating activities   (1,191)   (3,426)
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   24,800    39,500 
Repayments of revolving credit facility   (16,750)   (32,500)
SBA debentures borrowings   3,280    8,500 
Payments of deferred financing costs   (79)   (554)
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 $0, and $254, respectively   (7,084)   (5,549)
Net cash provided by (used in) financing activities   4,167    11,133 
           
Net increase (decrease) in Cash and Restricted Cash   2,976    7,707 
Effect of foreign currency exchange rates   12    - 
Cash and Restricted Cash, beginning of period (1)   7,199    8,331 
Cash and Restricted Cash, end of period (2)  $10,187   $16,038 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $3,145   $1,639 
Cash paid for excise taxes during the period  $91   $495 

 

 

(1)Represents cash and restricted cash of $4,332 and $2,867, respectively, from the consolidated statement of assets and liabilities as of December 31, 2017. 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.
(2)Represents cash and restricted cash of $3,070 and $7,117, respectively, from the consolidated statement of assets and liabilities as of March 31, 2018. 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.

 

See Notes to Consolidated Financial Statements.

 

 6 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2018

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
 Index (b)
  Interest
Rate
   Maturity  Principal   Amortized
Cost
   Fair
Value (c)
   % of Net
Assets (d)
 
Non-Controlled/Non-Affiliate Company Investments                               
Senior Secured Loans                               
Banking, Finance, Insurance & Real Estate                               
Echelon Funding I, LLC (Delayed Draw) (e) (f) (g)  L+10.25%   11.91%  2/24/2021   15,750   $14,454   $14,681    5.4%
HFZ Capital Group, LLC (e)   L+10.00%   11.69%  10/20/2019   18,000    17,666    18,153    6.7%
Liftforward SPV II, LLC (e) (f)  L+10.75%   12.63%  11/10/2020   10,000    4,215    4,317    1.6%
PKS Holdings, LLC (e)  L+9.50%   11.16%  11/30/2022   1,789    1,631    1,752    0.6%
PKS Holdings, LLC (Revolver) (e) (f)  L+9.50%   11.16%  11/30/2022   80    -    -    0.0%
               45,619    37,966    38,903    14.3%
Beverage, Food & Tobacco                               
All Holding Company, LLC (h)  L+7.00%   8.88%  11/15/2021   5,294    5,216    5,225    1.9%
California Pizza Kitchen, Inc.  L+6.00%   7.88%  8/23/2022   6,895    6,835    6,771    2.5%
               12,189    12,051    11,996    4.4%
Construction & Building                               
Cali Bamboo, LLC  L+8.00%   9.88%  7/10/2020   5,305    5,257    5,305    1.9%
Cali Bamboo, LLC (Revolver) (f)  L+8.00%   9.88%  7/10/2020   2,165    1,602    1,602    0.6%
Cornerstone Detention Products, Inc. (i)   L+11.83%   10.38% Cash/
3.33% PIK
(j)  4/8/2019   3,477    3,461    3,470    1.3%
Cornerstone Detention Products, Inc. (Revolver) (f)  L+8.50%   10.38%  4/8/2019   1,000    200    200    0.1%
TRP Construction Group, LLC (h)  L+6.50%   8.38%  10/5/2022   7,980    7,833    7,996    2.9%
TRP Construction Group, LLC (Revolver) (f)  L+6.50%   8.38%  10/5/2022   2,134    -    -    0.0%
               22,061    18,353    18,573    6.8%
Consumer Goods: Durable                               
Parterre Flooring & Surface Systems, LLC (h)  L+7.25%   9.13%  8/22/2022   11,700    11,489    11,693    4.3%
Parterre Flooring & Surface Systems, LLC (Revolver) (f)  L+7.25%   9.13%  8/22/2022   2,400    -    -    0.0%
               14,100    11,489    11,693    4.3%
Consumer Goods: Non-Durable                               
Bluestem Brands, Inc.  L+7.50%   9.38%  11/6/2020   2,557    2,543    1,803    0.7%
Gibson Brands, Inc. (k)  n/a   8.88%  8/1/2018   10,000    9,220    8,025    2.9%
Solaray, LLC  L+6.50%   8.55%  9/9/2023   3,256    3,229    3,256    1.2%
Solaray, LLC (Delayed Draw)  L+6.50%   8.80%  9/9/2023   699    699    699    0.3%
               16,512    15,691    13,783    5.1%
Energy: Oil & Gas                               
Landpoint, LLC  L+12.75%   12.38% Cash/
2.25% PIK
(l)  12/20/2019   2,311    2,300    2,273    0.8%
Landpoint, LLC (Revolver) (f)  L+10.50%   12.38%  12/20/2019   313    -    -    0.0%
               2,624    2,300    2,273    0.8%
Environmental Industries                               
Synergy Environmental Corporation (h)  L+6.50%   8.38%  4/29/2021   2,992    2,942    2,995    1.1%
Synergy Environmental Corporation (h)  L+6.50%   8.38%  4/29/2021   500    492    501    0.2%
Synergy Environmental Corporation (Delayed Draw) (f) (g)  L+6.50%   8.38%  4/29/2021   1,336    853    854    0.3%
Synergy Environmental Corporation (Revolver) (f)  L+6.50%   8.38%  4/29/2021   671    47    47    0.0%
               5,499    4,334    4,397    1.6%
Healthcare & Pharmaceuticals                               
American Optics Holdco, Inc. (e) (m)  L+8.00%   9.88%  9/13/2022   4,123    4,048    4,191    1.6%
American Optics Holdco, Inc. (Revolver) (e) (f) (m)   L+8.00%   9.88%  9/13/2022   440    -    -    0.0%
American Optics Holdco, Inc. (e) (m)  L+8.00%   9.88%  9/13/2022   758    745    771    0.3%
American Optics Holdco, Inc. (Revolver) (e) (f) (m)  L+8.00%   9.88%  9/13/2022   440    -    -    0.0%
Beaver-Visitec International Holdings, Inc.  L+5.00%   7.30%  8/19/2023   4,925    4,885    4,950    1.8%

 

 7 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
 Index (b)
  Interest
Rate
   Maturity  Principal   Amortized
Cost
   Fair
Value (c)
   % of Net
Assets (d)
 
Edge Systems Holdings Corp.  L+7.75%   9.63%  12/1/2021   3,362   $3,310   $3,431    1.3%
Edge Systems Holdings Corp. (Revolver) (f)  P+6.75%   11.50%  12/1/2021   260    117    117    0.0%
Familia Dental Group Holdings, LLC (h)  L+8.00%   9.88%  4/8/2021   5,225    5,169    5,277    1.9%
Familia Dental Group Holdings, LLC  L+8.00%   9.88%  4/8/2021   499    499    504    0.2%
Familia Dental Group Holdings, LLC (Revolver) (f)  L+8.00%   9.88%  4/8/2021   573    344    344    0.1%
               20,605    19,117    19,585    7.2%
High Tech Industries                               
Answers Finance, LLC  L+5.00%   6.88%  4/15/2021   253    250    247    0.1%
Corbett Technology Solutions, Inc. (h)  L+7.00%   8.88%  11/7/2021   4,219    4,171    4,261    1.6%
Corbett Technology Solutions, Inc. (Revolver) (f)  L+7.00%   8.88%  11/7/2021   867    87    87    0.0%
CRMfusion Inc.  L+6.50%   8.38%  2/21/2023   5,000    4,902    4,988    1.8%
CRMfusion Inc. (Revolver) (f)  L+6.50%   8.38%  2/21/2023   500    -    -    0.0%
Energy Services Group, LLC  L+9.82%   12.12%  5/4/2022   4,562    4,512    4,608    1.7%
Energy Services Group, LLC (e) (n)  L+9.82%   10.82%  5/4/2022   2,556    2,333    2,575    1.0%
Energy Services Group, LLC (Delayed Draw)(f) (g)  L+9.82%   12.12%  5/4/2022   1,299    1,082    1,110    0.4%
Newforma, Inc. (h)  L+7.50%   9.80%  6/30/2022   14,924    14,731    15,074    5.5%
Newforma, Inc. (Revolver) (f)  L+7.50%   9.80%  6/30/2022   1,250    -    -    0.0%
Prototek Sheetmetal Fabrication, LLC  L+7.50%   9.38%  12/12/2022   3,491    3,426    3,507    1.3%
Prototek Sheetmetal Fabrication, LLC (Delayed Draw) (f) (g)  L+7.50%   9.38%  12/12/2022   2,334    -    -    0.0%
Prototek Sheetmetal Fabrication, LLC (Revolver) (f)  L+7.50%   9.38%  12/12/2022   233    -    -    0.0%
RPL Bidco Limited (e) (m) (n)  L+7.50%   8.02%  11/9/2023   9,811    9,064    9,914    3.6%
RPL Bidco Limited (Revolver) (e) (f) (m) (n)  L+7.50%   8.02%  11/9/2023   561    -    -    0.0%
               51,860    44,558    46,371    17.0%
Hotels, Gaming & Leisure                               
BC Equity Ventures LLC  L+6.50%   8.49%  8/31/2022   2,579    2,538    2,620    1.0%
Miles Partnership LLC  L+11.00%   11.30% Cash/
2.00% PIK
   3/24/2021   5,881    5,851    5,881    2.1%
Miles Partnership LLC (Delayed Draw) (f) (g)  L+11.00%   11.30% Cash/
2.00% PIK
   3/24/2021   1,410    1,063    1,063    0.4%
Miles Partnership LLC (Revolver) (f)  L+11.00%   11.30% Cash/
2.00% PIK
   3/24/2021   320    -    -    0.0%
TRG, LLC  L+12.10%   9.16% Cash/
4.60% PIK
(o)  3/31/2021   17,100    17,023    18,340    6.7%
TRG, LLC (CapEx) (f)  L+9.50%   9.16% Cash/
2.00% PIK
   3/31/2021   1,636    1,348    1,452    0.5%
TRG, LLC (Revolver) (f)  L+9.50%   11.16%  3/31/2021   262    131    141    0.1%
               29,188    27,954    29,497    10.8%
Media: Advertising, Printing & Publishing                               
AdTheorent, Inc.  L+10.50%   12.16%  12/22/2021   4,875    4,800    4,863    1.8%
Destination Media, Inc. (h)  L+6.50%   8.38%  4/7/2022   7,800    7,703    7,769    2.8%
Destination Media, Inc. (Revolver) (f)  L+6.50%   8.38%  4/7/2022   542    -    -    0.0%
MC Sign Lessor Corp.  L+7.00%   8.66%  12/22/2022   10,000    9,809    10,075    3.7%
MC Sign Lessor Corp. (Delayed Draw) (f) (g)  L+7.00%   8.66%  12/22/2022   2,083    -    -    0.0%
MC Sign Lessor Corp. (Revolver) (f)  L+7.00%   8.66%  12/22/2022   625    -    -    0.0%
               25,925    22,312    22,707    8.3%
Media: Broadcasting & Subscription                               
Jerry Lee Radio, LLC  L+9.50%   11.38%  12/17/2020   11,204    11,034    11,204    4.1%
               11,204    11,034    11,204    4.1%
Retail                               
Forman Mills, Inc. (h)  L+7.50%   9.38%  10/4/2021   8,458    8,332    8,415    3.1%
LuLu's Fashion Lounge, LLC  L+7.00%   8.88%  8/28/2022   4,812    4,682    4,909    1.8%
The Worth Collection, Ltd. (h)  L+8.50%   10.38%  9/29/2021   10,588    10,430    9,105    3.3%
Yandy Holding, LLC  L+9.00%   10.88%  9/30/2019   4,385    4,362    4,299    1.6%
Yandy Holding, LLC (Revolver) (f)  L+9.00%   10.88%  9/30/2019   907    -    -    0.0%
               29,150    27,806    26,728    9.8%
Services: Business                               
APCO Worldwide, Inc.  L+8.00%   9.88%  6/30/2022   5,000    4,912    5,040    1.9%
Burroughs, Inc. (h)  L+7.50%   9.16%  12/22/2022   6,000    5,913    6,027    2.2%
Burroughs, Inc. (Revolver) (f)  L+7.50%   9.16%  12/22/2022   750    375    375    0.1%

 

 8 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
 Index (b)
  Interest
Rate
   Maturity  Principal   Amortized
Cost
   Fair
Value (c)
   % of Net
Assets (d)
 
Curion Holdings, LLC (h)  L+7.00%   8.88%  5/2/2022   3,859   $3,810   $3,792    1.4%
Curion Holdings, LLC (Revolver) (f)  L+7.00%   8.88%  5/2/2022   308    77    75    0.0%
EB Employee Solutions, LLC (h)  L+8.00%   9.88%  2/28/2019   3,170    3,149    3,107    1.1%
First Call Resolution, LLC (h)  L+7.00%   8.66%  9/22/2022   4,988    4,909    5,137    1.9%
Madison Logic, Inc. (h)  L+8.00%   9.88%  11/30/2021   10,172    10,013    10,172    3.7%
Madison Logic, Inc. (Revolver) (f)  L+8.00%   9.88%  11/30/2021   988    -    -    0.0%
               35,235    33,158    33,725    12.3%
Services: Consumer                               
PeopleConnect Intermediate, LLC  L+6.50%   8.20%  7/1/2020   4,476    4,425    4,476    1.7%
PeopleConnect Intermediate, LLC  L+12.50%   14.20%  7/1/2020   4,738    4,681    4,726    1.7%
PeopleConnect Intermediate, LLC (Revolver) (f)  L+9.50%   11.20%  7/1/2020   236    118    118    0.0%
               9,450    9,224    9,320    3.4%
Telecommunications                               
Peerless Network, Inc. (h)  L+9.25%   10.16% Cash/
0.75% PIK
(p)  12/11/2020   2,964    2,919    2,985    1.1%
               2,964    2,919    2,985    1.1%
Utilities: Electric                               
CRCI Holdings, Inc.  L+5.50%   8.17%  8/31/2023   2,782    2,760    2,797    1.0%
               2,782    2,760    2,797    1.0%
Wholesale                               
Mid-West Wholesale Hardware Co. (h)  L+8.00%   9.88%  2/9/2022   16,527    16,250    16,502    6.0%
Mid-West Wholesale Hardware Co. (Revolver) (f)  L+8.00%   9.88%  2/9/2022   4,421    632    631    0.2%
Nearly Natural, Inc. (h)  L+7.00%   9.30%  12/15/2022   6,983    6,849    6,990    2.6%
Nearly Natural, Inc. (Revolver) (f)  L+7.00%   9.30%  12/15/2022   1,522    -    -    0.0%
               29,453    23,731    24,123    8.8%
Total Non-Controlled/Non-Affiliate Senior Secured Loans              366,420    326,757    330,660    121.1%
                                
Unitranche Secured Loans (q)                               
Chemicals, Plastics & Rubber                               
MFG Chemical, LLC (h)  L+6.00%   7.88%  6/23/2022   10,477    10,337    10,461    3.8%
MFG Chemical, LLC (Delayed Draw) (f) (g)  L+6.00%   7.88%  6/23/2022   1,135    -    -    0.0%
               11,612    10,337    10,461    3.8%
Consumer Goods: Non-Durable                               
Incipio Technologies, Inc. (r)  L+10.80%   12.13% Cash/
0.55% PIK
(ab)  12/26/2019   13,803    13,675    13,396    4.9%
Incipio Technologies, Inc.  L+10.80%   11.97% Cash/
0.55% PIK
(ab)  12/26/2019   2,110    2,110    2,048    0.8%
               15,913    15,785    15,444    5.7%
Healthcare & Pharmaceuticals                               
Collaborative Neuroscience Network, LLC  L+11.50%   13.38%  4/27/2018   6,120    6,080    5,909    2.2%
Collaborative Neuroscience Network, LLC  n/a   12.00% Cash/
3.00% PIK
   4/27/2018   297    297    297    0.1%
Collaborative Neuroscience Network, LLC (Revolver)  L+10.00%   11.88%  4/27/2018   200    191    195    0.1%
Priority Ambulance, LLC (h)  L+6.50%   8.80%  4/12/2022   9,258    9,098    9,263    3.4%
Priority Ambulance, LLC  L+6.50%   8.79%  4/12/2022   676    676    676    0.2%
               16,551    16,342    16,340    6.0%
Hotels, Gaming & Leisure                               
Playtime, LLC  L+7.50%   9.38%  12/31/2021   4,014    4,014    3,731    1.4%
               4,014    4,014    3,731    1.4%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans              48,090    46,478    45,976    16.9%
                                
Junior Secured Loans                               
Aerospace & Defense                               
AIM Aerospace, Inc.  L+9.00%   10.77%  8/2/2022   5,000    4,945    5,000    1.8%
               5,000    4,945    5,000    1.8%
Banking, Finance, Insurance & Real Estate                               
Confie Seguros Holdings II Co.  L+9.50%   11.48%  5/8/2019   8,594    8,401    8,347    3.1%
               8,594    8,401    8,347    3.1%
Beverage, Food & Tobacco                               
CSM Bakery Supplies LLC  L+7.75%   9.45%  7/3/2021   5,792    5,792    5,570    2.1%
               5,792    5,792    5,570    2.1%

 

 9 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
 Index (b)
  Interest
Rate
   Maturity  Principal   Amortized
Cost
   Fair
Value (c)
   % of Net
Assets (d)
 
Healthcare & Pharmaceuticals                               
Heartland Dental, LLC  L+8.50%   10.38%  7/31/2024   3,000   $2,958   $3,048    1.1%
               3,000    2,958    3,048    1.1%
High Tech Industries                               
Answers Finance, LLC  P+7.90%   9.00%(s)  9/15/2021   393    391    386    0.1%
Micro Holdings Corp.  L+7.50%   9.28%  8/18/2025   3,000    2,972    3,043    1.1%
               3,393    3,363    3,429    1.2%
Media: Broadcasting & Subscription                               
Mergermarket Bidco Limited  L+7.25%   9.04%  8/3/2025   4,500    4,456    4,538    1.7%
               4,500    4,456    4,538    1.7%
Media: Diversified & Production                               
The Octave Music Group, Inc.  L+8.25%   9.94%  5/29/2022   5,000    4,949    5,006    1.8%
               5,000    4,949    5,006    1.8%
Services: Consumer                               
Education Corporation of America  L+11.00%   13.31%  12/31/2018   625    621    625    0.2%
Pre-Paid Legal Services, Inc. (Legal Shield)  L+9.00%   10.88%  7/1/2020   3,000    3,000    3,015    1.1%
               3,625    3,621    3,640    1.3%
Total Non-Controlled/Non-Affiliate Junior Secured Loans              38,904    38,485    38,578    14.1%
                                
Equity Securities (t) (u)                               
Banking, Finance, Insurance & Real Estate                               
PKS Holdings, LLC (warrant to purchase 14,247 class A preferred units) (e)  -   -(v)  11/30/2027   -    116    120    0.0%
                    116    120    0.0%
Healthcare & Pharmaceuticals                               
Collaborative Neuroscience Network, LLC (warrant to purchase up to 2 LLC units)  -   -(v)  12/27/2022   -    -    -    0.0%
Collaborative Neuroscience Network, LLC (warrant to purchase up to 2 LLC units)  -   -(v)  12/31/2027   -    -    -    0.0%
                    -    -    0.0%
High Tech Industries                               
Answers Finance, LLC (76,539 shares of common stock)  -   -(v)  -   -    2,413    1,167    0.4%
                    2,413    1,167    0.4%
Hotels, Gaming & Leisure                               
Playtime, LLC - Preferred Units (8,665 units)  -   -(v)  -   -    200    13    0.0%
                    200    13    0.0%
Media: Advertising, Printing & Publishing                               
AdTheorent, Inc. (128,866 class A voting units)  -   -(v)  -   -    129    122    0.0%
InMobi Pte, Ltd. (represents the right to purchase 2.80% of the equity) (e) (m)  -   -(v)  9/18/2025   -    -    219    0.1%
                    129    341    0.1%
Retail                               
The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units)  -   -   -   -    86    122    0.0%
The Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units)  -   -   -   -    1    -    0.0%
                    87    122    0.0%
Services: Business                               
APCO Worldwide, Inc. (100 class A voting common stock)  -   -(v)  -   -    395    427    0.2%
                    395    427    0.2%
Services: Consumer                               
Education Corporation of America - Series G Preferred Stock (8,333 shares)  -   12.00 %PIK   -   -    8,627    8,503    3.2%
                    8,627    8,503    3.2%
Wholesale                               
Nearly Natural, Inc. (152,174 class A units)  -   -(v)  -   -    152    151    0.1%
                    152    151    0.1%
Total Non-Controlled/Non-Affiliate Equity Securities                   12,119    10,844    4.0%
Total Non-Controlled/Non-Affiliate Company Investments                  $423,839   $426,058    156.1%

 

 10 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
 Index (b)
  Interest
Rate
   Maturity  Principal   Amortized
Cost
   Fair
Value (c)
   % of Net
Assets (d)
 
Non-Controlled Affiliate Company Investments (w)                               
Senior Secured Loans                               
Banking, Finance, Insurance & Real Estate                               
American Community Homes, Inc.  L+10.00%   11.88%  7/22/2019   7,333   $7,272   $7,366    2.7%
American Community Homes, Inc.  L+14.50%   11.88% Cash/
4.50% PIK
   7/22/2019   4,296    4,265    4,334    1.6%
American Community Homes, Inc.  L+14.50%   11.88% Cash/
4.50% PIK
   n/a (x)   549    543    549    0.2%
American Community Homes, Inc.  L+10.00%   11.88%  7/22/2019   444    436    447    0.2%
American Community Homes, Inc.  L+14.50%   11.88% Cash/
4.50% PIK
   7/22/2019   231    227    233    0.1%
American Community Homes, Inc. (Delayed Draw)(f) (g)   L+10.00%   11.88%  7/22/2019   444    -    -    0.0%
American Community Homes, Inc. (Delayed Draw)(f) (g)  L+14.50%   11.88% Cash/
4.50% PIK
   7/22/2019   222    -    -    0.0%
               13,519    12,743    12,929    4.8%
Consumer Goods: Non-Durable                               
Millennial Brands LLC  n/a   12.00% PIK(y)  8/29/2019   1,157    1,157    -    0.0%
Millennial Brands LLC  n/a   15.00% PIK(y)  8/29/2019   422    416    -    0.0%
Millennial Brands LLC  n/a   17.00% PIK(y)  9/30/2018   235    235    -    0.0%
Millennial Brands LLC  n/a   16.50% PIK(y)  8/29/2019   550    534    541    0.2%
               2,364    2,342    541    0.2%
Containers, Packaging & Glass                               
Summit Container Corporation (h)  L+12.00%   12.00% Cash/
2.00% PIK
   1/6/2019   3,611    3,601    3,452    1.2%
Summit Container Corporation (h)  L+12.00%   12.00% Cash/
2.00% PIK
   1/6/2019   1,515    1,515    1,515    0.6%
               5,126    5,116    4,967    1.8%
Healthcare & Pharmaceuticals                               
Rockdale Blackhawk, LLC  L+13.00%   14.88%  3/31/2020   10,922    10,409    10,687    3.9%
Rockdale Blackhawk, LLC (Capex)  L+13.00%   14.88%  3/31/2020   549    549    537    0.2%
Rockdale Blackhawk, LLC (Revolver)  L+13.00%   14.88%  3/31/2020   1,849    1,849    1,805    0.7%
Rockdale Blackhawk, LLC (Revolver)  L+13.00%   14.88%  3/31/2020   3,236    3,236    3,158    1.1%
Rockdale Blackhawk, LLC (Revolver)  L+13.00%   14.88%  3/31/2020   1,387    1,387    1,353    0.5%
SHI Holdings, Inc. (h)  L+10.25%   12.13%  7/10/2019   2,618    2,605    2,618    1.0%
SHI Holdings, Inc. (Revolver) (f)   L+10.25%   12.13%  7/10/2019   3,136    2,545    2,553    0.9%
               23,697    22,580    22,711    8.3%
Retail                               
Luxury Optical Holdings Co.  L+8.00%   9.88% PIK   9/12/2019   4,352    4,325    3,858    1.4%
Luxury Optical Holdings Co. (Delayed Draw) (f) (g)  L+11.50%   13.38%  9/12/2019   1,059    623    623    0.2%
Luxury Optical Holdings Co. (Revolver)  L+8.00%   9.88% PIK   9/12/2019   201    201    178    0.1%
TPP Operating, Inc.  L+6.00%   7.88% PIK(y)  11/8/2018   9,370    9,330    -    0.0%
TPP Operating, Inc.  L+6.00%   7.88%(y)  11/8/2018   7,672    7,630    38    0.0%
TPP Operating, Inc.  L+9.61%   11.49%(y)  11/8/2018   4,336    4,289    3,610    1.3%
               26,990    26,398    8,307    3.0%
Total Non-Controlled Affiliate Senior Secured Loans              71,696    69,179    49,455    18.1%
                                
Junior Secured Loans                               
Consumer Goods: Non-Durable                               
Millennial Brands LLC  n/a   15.00% PIK(y)  5/1/2020   2,011    2,011    -    0.0%
               2,011    2,011    -    0.0%
Total Non-Controlled Affiliate Company Junior Secured Loans              2,011    2,011    -    0.0%
                                
Equity Securities (u)                               
Banking, Finance, Insurance & Real Estate                               
American Community Homes, Inc. (warrant to purchase up to 9.0% of the equity)  -   -(v)  10/9/2024   -    -    227    0.1%
                    -    227    0.1%
Consumer Goods: Non-Durable                               
Millennial Brands LLC  -   -(v)  -   -    -    -    0.0%
Millennial Brands LLC  n/a   15.00% PIK(y)  -   -    967    -    0.0%
                    967    -    0.0%

 

 11 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
 Index (b)
  Interest
Rate
   Maturity  Principal   Amortized
Cost
   Fair
Value (c)
   % of Net
Assets (d)
 
Containers, Packaging & Glass                               
Summit Container Corporation (warrant to purchase up to 19.50% of the equity)  -   -(v)  1/6/2024   -   $-   $-    0.0%
                    -    -    0.0%
Healthcare & Pharmaceuticals                               
Rockdale Blackhawk, LLC - LLC Units (22.65% of the LLC interest)  -   -(v)  -   -    1,093    3,342    1.2%
SHI Holdings, Inc. (24 shares of common stock)  -   -(v)  -   -    27    619    0.2%
                    1,120    3,961    1.4%
Retail                               
Luxury Optical Holdings Co. (86 shares of common stock)  -   -(v)  -   -    -    -    0.0%
TPP Operating, Inc. (24 shares of common stock)  -   -(v)  -   -    1,953    -    0.0%
TPP Operating, Inc. (16 shares of common stock) (z)  -   -(v)  -   -    1,302    -    0.0%
                    3,255    -    0.0%
Total Non-Controlled Affiliate Equity Securities                   5,342    4,188    1.5%
Total Non-Controlled Affiliate Company Investments                  $76,532   $53,643    19.6%
                                
Controlled Affiliate Company Investments (aa)                               
Equity Securities                               
Investment Funds & Vehicles                               
MRCC Senior Loan Fund I, LLC (e)  -   -   -   -    15,750    16,333    6.0%
Total Controlled Affiliate Equity Securities                   15,750    16,333    6.0%
Total Controlled Affiliate Company Investments                  $15,750   $16,333    6.0%
                                
TOTAL INVESTMENTS                  $516,121   $496,034    181.7%

 

 

(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 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 March 31, 2018. Certain investments are subject to a LIBOR or Prime interest rate floor, or rate cap.

(c) Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs 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.)

 

 12 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and units)

 

 

(d) Percentages are based on net assets of $273,005 as of March 31, 2018.

(e) 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, 2018, non-qualifying assets totaled 14.26% of the Company’s total assets.

(f) All or a portion of this commitment was unfunded at March 31, 2018. As such, interest is earned only on the funded portion of this commitment.

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

(h) 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.

(i) A portion of this loan (principal of $2,086) 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.

(j) A portion of the PIK interest rate for Cornerstone Detention Products, Inc. is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 2.33% per annum.

(k) This investment represents a senior secured note that is traded in the secondary bond market.

(l) 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.

(m) This is an international company.

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

(o) 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 2.60% 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) The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan, in which case the “first out” portion of the loan will generally receive priority with respect to payments of principal, interest and any other amounts due thereunder. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and the Company’s unitranche secured loans will expose the Company to the risks associated with second lien and subordinated loans and may limit the Company’s recourse or ability to recover collateral upon a portfolio company’s bankruptcy. Unitranche secured loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche secured loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases the Company, together with its affiliates, are the sole or majority lender of these unitranche secured loans, which can afford the Company additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of underperformance.

(r) A portion of this loan (principal of $5,061) 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) This term loan is subject to a prime rate cap of 1.10%.

(t) Represents less than 5% ownership of the portfolio company’s voting securities.

(u) Ownership of certain equity investments may occur through a holding company or partnership.

(v) Represents a non-income producing security.

(w) 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).

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

(y) This position was on non-accrual status as of March 31, 2018, 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.

(z) This investment is held in a wholly owned entity, MCC Holdco Equity Manager I, LLC ("MCC Holdco"), which has an independent manager who has full control over the operations of MCC Holdco, including the right to vote the shares of TPP Holdco LLC, the holding company which owns the Company's equity interest in TPP. See Note 5 in the accompanying notes to the consolidated financial statements for additional information.

(aa) 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.

(ab) The PIK portion of the interest rate for Incipio Technologies, Inc. is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.55% per annum.

n/a - not applicable

 

See Notes to Consolidated Financial Statements.

 

 13 

 

MONROE CAPITAL CORPORATION
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2017
(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
Index (b)
  Interest
Rate
   Maturity  Principal   Amortized
Cost
   Fair
Value (c)
   % of Net
Assets (d)
 
Non-Controlled/Non-Affiliate Company Investments                               
Senior Secured Loans                               
Banking, Finance, Insurance & Real Estate                               
Echelon Funding I, LLC (Delayed Draw) (e) (f) (g)  L+10.25%   11.61%  2/24/2021   15,750   $15,415   $15,654    5.6%
HFZ Capital Group, LLC (e)  L+10.00%   11.36%  10/20/2019   18,000    17,613    17,991    6.5%
Liftforward SPV II, LLC (e) (f)  L+10.75%   12.32%  11/10/2020   10,000    4,212    4,268    1.5%
PKS Holdings, LLC (e)  L+9.50%   10.85%  11/30/2022   1,800    1,640    1,719    0.6%
PKS Holdings, LLC (Revolver) (e) (f)  L+9.50%   10.85%  11/30/2022   80            0.0%
               45,630    38,880    39,632    14.2%
Beverage, Food & Tobacco                               
All Holding Company, LLC (h)  L+7.00%   8.57%  11/15/2021   5,328    5,246    5,368    1.9%
California Pizza Kitchen, Inc.  L+6.00%   7.57%  8/23/2022   6,913    6,850    6,791    2.5%
               12,241    12,096    12,159    4.4%
Construction & Building                               
Cali Bamboo, LLC  L+8.00%   9.57%  7/10/2020   5,319    5,266    5,319    1.9%
Cali Bamboo, LLC (Revolver) (f)  L+8.00%   9.57%  7/10/2020   2,165    1,039    1,039    0.4%
Cornerstone Detention Products, Inc. (i)  L+11.83%   10.07% Cash/
3.33% PIK
(j)  4/8/2019   3,521    3,501    3,500    1.3%
Cornerstone Detention Products, Inc. (Revolver) (f)  L+8.50%   10.07%  4/8/2019   400    200    199    0.1%
TRP Construction Group, LLC (h)  L+6.50%   8.07%  10/5/2022   8,000    7,845    7,992    2.9%
TRP Construction Group, LLC (Revolver) (f)  L+6.50%   8.07%  10/5/2022   2,134            0.0%
               21,539    17,851    18,049    6.6%
Consumer Goods: Durable                               
Parterre Flooring & Surface Systems, LLC (h)  L+7.25%   8.82%  8/22/2022   11,850    11,625    11,808    4.2%
Parterre Flooring & Surface Systems, LLC (Revolver) (f)  L+7.25%   8.82%  8/22/2022   2,400            0.0%
               14,250    11,625    11,808    4.2%
Consumer Goods: Non-Durable                               
Bluestem Brands, Inc.  L+7.50%   9.07%  11/6/2020   2,597    2,581    1,829    0.7%
Gibson Brands, Inc. (k)  8.88%   8.88%  8/1/2018   10,000    8,664    8,435    3.0%
Solaray, LLC  L+6.50%   8.02%  9/9/2023   3,264    3,236    3,264    1.2%
Solaray, LLC (Delayed Draw)  L+6.50%   8.19%  9/9/2023   699    699    699    0.3%
               16,560    15,180    14,227    5.2%
Energy: Oil & Gas                               
Landpoint, LLC  L+12.75%   12.07% Cash/
2.25% PIK
(l)  12/20/2019   2,386    2,372    2,352    0.8%
Landpoint, LLC (Revolver) (f)  L+10.50%   12.07%  12/20/2019   313            0.0%
               2,699    2,372    2,352    0.8%
Environmental Industries                               
Synergy Environmental Corporation (h)  L+8.00%   9.57%  4/29/2021   3,011    2,958    3,036    1.1%
Synergy Environmental Corporation (h)  L+8.00%   9.57%  4/29/2021   504    495    508    0.2%
Synergy Environmental Corporation (Delayed Draw) (f) (g)  L+8.00%   9.57%  4/29/2018   1,342    859    866    0.3%
Synergy Environmental Corporation (Revolver) (f)  L+8.00%   9.57%  4/29/2021   671    47    47    0.0%
               5,528    4,359    4,457    1.6%

 

See Notes to Consolidated Financial Statements.

 

 14 

 

MONROE CAPITAL CORPORATION
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2017
(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
Index (b)
  Interest
Rate
   Maturity  Principal   Amortized
Cost
   Fair
Value (c)
   % of Net
Assets (d)
 
Healthcare & Pharmaceuticals                               
American Optics Holdco, Inc. (e) (m)  L+8.00%   9.57%  9/13/2022   4,133   $4,055   $4,136    1.5%
American Optics Holdco, Inc. (Revolver) (e) (f) (m)  L+8.00%   9.57%  9/13/2022   440            0.0%
American Optics Holdco, Inc. (e) (m)  L+8.00%   9.57%  9/13/2022   760    746    761    0.3%
American Optics Holdco, Inc. (Revolver) (e) (f) (m)  L+8.00%   9.57%  9/13/2022   440            0.0%
Beaver-Visitec International Holdings, Inc.  L+5.00%   6.69%  8/19/2023   4,938    4,895    4,938    1.8%
Edge Systems Holdings Corp.  L+7.75%   9.32%  12/1/2021   3,384    3,329    3,445    1.2%
Edge Systems Holdings Corp. (Revolver) (f)  P+6.75%   11.25%  12/1/2021   260            0.0%
Familia Dental Group Holdings, LLC (h)  L+8.00%   9.57%  4/8/2021   5,259    5,199    5,322    1.9%
Familia Dental Group Holdings, LLC  L+8.00%   9.57%  4/8/2021   506    506    512    0.2%
Familia Dental Group Holdings, LLC (Revolver) (f)  L+8.00%   9.57%  4/8/2021   573    344    344    0.1%
               20,693    19,074    19,458    7.0%
High Tech Industries                               
Answers Finance, LLC  L+5.00%   6.57%  4/15/2021   253    251    249    0.1%
Corbett Technology Solutions, Inc. (h)  L+7.00%   8.57%  11/7/2021   4,275    4,224    4,318    1.5%
Corbett Technology Solutions, Inc. (Revolver) (f)  L+7.00%   8.57%  11/7/2021   867    607    607    0.2%
Energy Services Group, LLC  L+9.82%   11.39%  5/4/2022   4,620    4,568    4,678    1.7%
Energy Services Group, LLC (e) (n)  L+9.82%   10.82%  5/4/2022   2,495    2,361    2,509    0.9%
Energy Services Group, LLC (Delayed Draw) (f) (g)  L+9.82%   11.39%  5/4/2022   1,313    1,096    1,126    0.4%
Newforma, Inc. (h)  L+7.50%   9.19%  6/30/2022   14,962    14,754    15,060    5.4%
Newforma, Inc. (Revolver) (f)  L+7.50%   9.19%  6/30/2022   1,250            0.0%
Prototek Sheetmetal Fabrication, LLC  L+7.50%   9.07%  12/12/2022   3,500    3,430    3,430    1.2%
Prototek Sheetmetal Fabrication, LLC (Delayed Draw) (f) (g)  L+7.50%   9.07%  12/12/2022   2,334            0.0%
Prototek Sheetmetal Fabrication, LLC (Revolver) (f)  L+7.50%   9.07%  12/12/2022   233            0.0%
RPL Bidco Limited (e) (m) (n)  L+7.50%   8.02%  11/9/2023   9,459    9,057    9,516    3.4%
RPL Bidco Limited
(Revolver) (e) (f) (m) (n)
  L+7.50%   8.02%  11/9/2023   540            0.0%
               46,101    40,348    41,493    14.8%
Hotels, Gaming & Leisure                               
BC Equity Ventures LLC  L+6.50%   8.07%  8/31/2022   2,586    2,543    2,624    0.9%
Miles Partnership LLC  L+8.50%   10.19%  3/24/2021   5,946    5,910    6,005    2.2%
Miles Partnership LLC (Delayed Draw) (f) (g)  L+8.50%   10.19%  3/24/2021   1,422    1,074    1,085    0.4%
Miles Partnership LLC (Revolver) (f)  L+8.50%   10.19%  3/24/2021   320            0.0%
TRG, LLC  L+12.42%   8.86% Cash/
4.92% PIK
(o)  3/31/2021   17,088    17,000    17,190    6.2%
TRG, LLC (CapEx) (f)  L+9.50%   8.86% Cash/
2.00% PIK
   3/31/2021   1,629    1,340    1,354    0.5%
TRG, LLC (Revolver) (f)  L+9.50%   10.86%  3/31/2021   262    131    131    0.0%
Vacation Innovations, LLC (p)  L+9.31%   8.57% Cash/
2.31% PIK
(q)  8/20/2020   9,282    9,170    10,040    3.6%
Vacation Innovations, LLC (Delayed Draw) (f) (g)  L+7.50%   8.57% Cash/
0.50% PIK
   8/20/2020   2,037            0.0%
Vacation Innovations, LLC (Revolver)  L+7.50%   8.57% Cash/
0.50% PIK
   8/20/2020   342    342    342    0.1%
               40,914    37,510    38,771    13.9%

 

See Notes to Consolidated Financial Statements.

 

 15 

 

MONROE CAPITAL CORPORATION
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2017
(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
Index (b)
  Interest
Rate
   Maturity  Principal   Amortized
Cost
   Fair
Value (c)
   % of Net
Assets (d)
 
Media: Advertising, Printing & Publishing                               
AdTheorent, Inc.  L+8.50%   9.86%  12/22/2021   4,906   $4,824   $4,937    1.8%
Destination Media, Inc. (h)  L+6.50%   8.07%  4/7/2022   7,850    7,747    7,991    2.8%
Destination Media, Inc. (Revolver) (f)  L+6.50%   8.07%  4/7/2022   542            0.0%
MC Sign Lessor Corp.  L+7.00%   8.53%  12/22/2022   10,000    9,801    9,800    3.5%
MC Sign Lessor Corp. (Delayed Draw) (f) (g)  L+7.00%   8.53%  12/22/2022   2,083            0.0%
MC Sign Lessor Corp. (Revolver) (f)  L+7.00%   8.53%  12/22/2022   625    146    146    0.1%
               26,006    22,518    22,874    8.2%
Media: Broadcasting & Subscription                               
Jerry Lee Radio, LLC  L+9.50%   11.07%  12/17/2020   11,443    11,256    11,443    4.1%
               11,443    11,256    11,443    4.1%
Retail                               
Forman Mills, Inc. (h)  L+7.50%   9.07%  10/4/2021   8,479    8,345    8,441    3.0%
LuLu's Fashion Lounge, LLC  L+7.00%   8.57%  8/28/2022   4,906    4,767    5,004    1.8%
The Worth Collection, Ltd. (h)  L+8.50%   10.07%  9/29/2021   10,587    10,421    9,206    3.3%
Yandy Holding, LLC  L+9.00%   10.57%  9/30/2019   4,508    4,480    4,366    1.6%
Yandy Holding, LLC (Revolver) (f)  L+9.00%   10.57%  9/30/2019   907    106    102    0.0%
               29,387    28,119    27,119    9.7%
Services: Business                               
APCO Worldwide, Inc.  L+8.00%   9.57%  6/30/2022   5,000    4,908    5,025    1.8%
Burroughs, Inc. (h)  L+7.50%   9.03%  12/22/2022   6,000    5,910    5,910    2.2%
Burroughs, Inc. (Revolver) (f)  L+7.50%   9.07%  12/22/2022   750    75    75    0.0%
Curion Holdings, LLC (h)  L+7.00%   8.57%  5/2/2022   3,884    3,832    3,841    1.4%
Curion Holdings, LLC (Revolver) (f)  L+7.00%   8.57%  5/2/2022   308    77    76    0.0%
EB Employee Solutions, LLC (h)  L+8.50%   10.07%  2/28/2019   3,195    3,168    3,115    1.1%
First Call Resolution, LLC (h)  L+7.00%   8.36%  9/22/2022   5,000    4,916    5,002    1.8%
Madison Logic, Inc. (h)  L+8.00%   9.57%  11/30/2021   10,237    10,069    10,289    3.7%
Madison Logic, Inc. (Delayed Draw) (f) (g)