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 June 30, 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 August 6, 2018, the registrant had 20,444,564 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, 2018 (unaudited) and December 31, 2017 3
     
  Consolidated Statements of Operations for the three and six months ended June 30, 2018 (unaudited) and 2017 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2018 (unaudited) and 2017 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the six months ended June 30, 2018 (unaudited) and 2017 (unaudited) 6
     
  Consolidated Schedules of Investments as of June 30, 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 46
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 64
     
Item 4. Controls and Procedures 64
     
PART II. OTHER INFORMATION 65
     
Item 1. Legal Proceedings 65
     
Item 1A. Risk Factors 65
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 67
     
Item 3. Defaults Upon Senior Securities 67
     
Item 4. Mine Safety Disclosures 67
     
Item 5. Other Information 67
     
Item 6. Exhibits 68
     
Signatures   69

 

 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, 2018   December 31, 2017 
   (unaudited)      
ASSETS          
Investments, at fair value:          
Non-controlled/non-affiliate company investments  $425,220   $425,747 
Non-controlled affiliate company investments   54,322    58,751 
Controlled affiliate company investments   18,693    9,640 
Total investments, at fair value (amortized cost of: $522,734 and $507,580, respectively)   498,235    494,138 
Cash   2,779    4,332 
Restricted cash   4,252    2,867 
Interest receivable   7,239    5,335 
Other assets   1,098    760 
Total assets   513,603    507,432 
           
LIABILITIES          
Debt:          
Revolving credit facility   125,496    117,092 
SBA debentures payable   115,000    109,520 
Total debt   240,496    226,612 
Less:  Unamortized deferred financing costs   (4,462)   (4,670)
Total debt, less unamortized deferred financing costs   236,034    221,942 
Interest payable   1,657    1,535 
Management fees payable   2,202    2,064 
Incentive fees payable   990    1,157 
Accounts payable and accrued expenses   2,012    2,035 
Total liabilities   242,895    228,733 
Net assets  $270,708   $278,699 
           
Commitments and contingencies (See Note 10)          
           
ANALYSIS OF NET ASSETS          
Common stock, $0.001 par value, 100,000 shares authorized,          
20,279 and 20,240 shares issued and outstanding, respectively  $20   $20 
Capital in excess of par value   286,651    286,141 
Undistributed net investment income (accumulated distributions in excess of net investment income)   8,907    6,707 
Accumulated net realized gain (loss) on investments, secured borrowings and foreign currency transactions   (369)   (372)
Accumulated net unrealized gain (loss) on investments, secured borrowings and foreign currency borrowings   (24,501)   (13,797)
Total net assets  $270,708   $278,699 
           
Net asset value per share  $13.35   $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 June 30,   Six months ended June 30, 
   2018   2017   2018   2017 
Investment income:                    
Interest income:                    
Non-controlled/non-affiliate company investments  $11,788   $10,053   $23,751   $20,108 
Non-controlled affiliate company investments   1,751    1,111    3,579    2,307 
Controlled affiliate company investments   -    217    -    394 
Total interest income   13,539    11,381    27,330    22,809 
Dividend income:                    
Non-controlled/non-affiliate company investments   265    250    525    500 
Controlled affiliate company investments   350    -    525    - 
Total dividend income   615    250    1,050    500 
Fee income:                    
Non-controlled/non-affiliate company investments   583    637    1,307    965 
Non-controlled affiliate company investments   83    -    83    - 
Total fee income   666    637    1,390    965 
Total investment income   14,820    12,268    29,770    24,274 
                     
Operating expenses:                    
Interest and other debt financing expenses   2,836    2,184    5,542    4,194 
Base management fees   2,202    1,903    4,365    3,708 
Incentive fees   990    1,460    1,751    2,750 
Professional fees   302    286    609    577 
Administrative service fees   322    301    646    631 
General and administrative expenses   225    259    401    468 
Excise taxes   -    -    11    - 
Directors’ fees   37    37    74    74 
Expenses before incentive fee waiver   6,914    6,430    13,399    12,402 
Incentive fee waiver   -    (250)   -    (250)
Total expenses, net of incentive fee waiver   6,914    6,180    13,399    12,152 
Net investment income   7,906    6,088    16,371    12,122 
                     
Net gain (loss) on investments, secured borrowings, foreign currency transactions and foreign currency borrowings:                    
Net realized gain (loss):                    
Non-controlled/non-affiliate company investments   -    2,161    -    2,328 
Secured borrowings   -    66    -    66 
Foreign currency transactions   (9)   -    3    - 
Net realized gain (loss)   (9)   2,227    3    2,394 
                     
Net change in unrealized gain (loss):                    
Non-controlled/non-affiliate company investments   (515)   497    (680)   689 
Non-controlled affiliate company investments   (4,157)   (7,192)   (11,080)   (9,356)
Controlled affiliate company investments   260    (575)   703    (2,234)
Secured borrowings   -    (5)   -    (6)
Foreign currency borrowings   795    (16)   353    (16)
Net change in unrealized gain (loss)   (3,617)   (7,291)   (10,704)   (10,923)
                     
Net gain (loss) on investments, secured borrowings, foreign currency transactions and foreign currency borrowings   (3,626)   (5,064)   (10,701)   (8,529)
                     
Net increase (decrease) in net assets resulting from operations  $4,280   $1,024   $5,670   $3,593 
                     
Per common share data:                    
Net investment income per share - basic and diluted  $0.39   $0.35   $0.81   $0.71 
Net increase (decrease) in net assets resulting from operations per share - basic and diluted  $0.21   $0.06   $0.28   $0.21 
Weighted average common shares outstanding - basic and diluted   20,244    17,369    20,242    16,984 

 

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 foreign

  

Accumulated net unrealized
gain (loss)

on investments, secured borrowings and foreign

     
   Number of
shares
   Par
value
   excess of par
value
  

investment
income)

  

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   -    -    -    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 
                                    
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   -    -    -    16,371    3    (10,704)   5,670 
Issuance of common stock, net of offering and underwriting costs   17    -    209    -    -    -    209 
Distributions to stockholders:                                   
Stock issued in connection with dividend reinvestment plan   22    -    301    (301)   -    -    - 
Distributions from net investment income   -    -    -    (13,870)   -    -    (13,870)
Balances at June 30, 2018   20,279   $20   $286,651   $8,907   $(369)  $(24,501)  $270,708 

 

See Notes to Consolidated Financial Statements.

  

 5 

 

  

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

(in thousands)

 

   Six months ended June 30, 
   2018   2017 
         
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $5,670   $3,593 
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   11,057    10,901 
Net change in unrealized (gain) loss on secured borrowings   -    6 
Net change in unrealized (gain) loss on foreign currency borrowings   (353)   16 
Net realized (gain) loss on investments   -    (2,328)
Net realized (gain) loss on secured borrowings   -    (66)
Net realized (gain) on foreign currency transactions   (3)   - 
Payment-in-kind interest income   (656)   (1,018)
Payment-in-kind dividend income   (522)   - 
Net accretion of discounts and amortization of premiums   (1,556)   (746)
Proceeds from principal payments and sales of investments   60,368    75,460 
Purchases of investments   (72,788)   (114,898)
Amortization of deferred financing costs   596    486 
Changes in operating assets and liabilities:          
Interest receivable   (1,904)   (919)
Other assets   (338)   (2)
Interest payable   122    135 
Management fees payable   138    154 
Incentive fees payable   (167)   (12)
Accounts payable and accrued expenses   (23)   (203)
Net cash provided by (used in) operating activities   (359)   (29,441)
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   67,107    68,329 
Repayments of revolving credit facility   (58,350)   (103,500)
SBA debentures borrowings   5,480    34,100 
Payments of deferred financing costs   (388)   (1,182)
Repayments on secured borrowings   -    (1,254)
Proceeds from shares sold, net of offering and underwriting costs   209    52,221 
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $301, and $525, respectively   (13,870)   (12,356)
Net cash provided by (used in) financing activities   188    36,358 
           
Net increase (decrease) in Cash and Restricted Cash   (171)   6,917 
Effect of foreign currency exchange rates   3    - 
Cash and Restricted Cash, beginning of period (1)   7,199    8,331 
Cash and Restricted Cash, end of period (2)  $7,031   $15,248 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $4,786   $3,473 
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 $2,779 and $4,252, respectively, from the consolidated statement of assets and liabilities as of June 30, 2018. 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.

 

See Notes to Consolidated Financial Statements.

  

 6 

 

  

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 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%   12.23%  2/24/2021   15,750   $15,745   $15,941    5.9%
HFZ Capital Group, LLC (e)   L+10.17%   12.31% Cash/ 0.17% PIK  (h) 10/20/2019   18,000    17,718    18,000    6.6%
Liftforward SPV II, LLC (e) (f)  L+10.75%   12.84%  11/10/2020   10,000    4,220    4,279    1.6%
PKS Holdings, LLC (e)  L+9.50%   11.48%  11/30/2022   1,778    1,622    1,720    0.6%
PKS Holdings, LLC (Revolver) (e) (f)  L+9.50%   11.48%  11/30/2022   80    -    -    0.0%
              45,608    39,305    39,940    14.7%
Beverage, Food & Tobacco                              
All Holding Company, LLC (i)  L+7.00%   9.09%  11/15/2021   5,259    5,187    5,131    1.9%
California Pizza Kitchen, Inc.  L+6.00%   8.10%  8/23/2022   6,878    6,818    6,750    2.5%
              12,137    12,005    11,881    4.4%
Capital Equipment                              
Hastings Manufacturing Company  L+8.25%   10.34%  4/24/2023   2,981    2,923    2,969    1.1%
Hastings Manufacturing Company (Delayed Draw) (f) (g)  L+8.25%   10.34%  4/24/2023   899    -    -    0.0%
              3,880    2,923    2,969    1.1%
Chemicals, Plastics & Rubber                              
Valudor Products LLC  L+7.50%   9.59%  6/18/2023   1,624    1,592    1,592    0.6%
Valudor Products LLC (j)  L+7.50%   9.59%  6/18/2023   211    205    205    0.1%
Valudor Products LLC (Revolver) (f)  L+7.50%   9.59%  6/18/2023   264    66    65    0.0%
              2,099    1,863    1,862    0.7%
Construction & Building                              
Cali Bamboo, LLC  L+7.00%   9.09%  7/10/2020   5,291    5,248    5,291    2.0%
Cali Bamboo, LLC (Revolver) (f)  L+7.00%   9.09%  7/10/2020   2,165    779    779    0.3%
Cornerstone Detention Products, Inc. (k)   L+11.83%   10.59% Cash/ 3.33% PIK  (l) 4/8/2019   3,434    3,422    3,434    1.3%
Cornerstone Detention Products, Inc. (Revolver) (f)  L+8.50%   10.59%  4/8/2019   1,000    200    200    0.1%
TRP Construction Group, LLC (i)  L+6.50%   8.59%  10/5/2022   7,960    7,820    7,948    2.9%
TRP Construction Group, LLC (Revolver) (f)  L+6.50%   8.59%  10/5/2022   2,133    -    -    0.0%
              21,983    17,469    17,652    6.6%
Consumer Goods: Durable                              
Parterre Flooring & Surface Systems, LLC (i)  L+7.25%   9.34%  8/22/2022   11,550    11,352    11,533    4.3%
Parterre Flooring & Surface Systems, LLC (Revolver) (f)  L+7.25%   9.34%  8/22/2022   2,400    -    -    0.0%
              13,950    11,352    11,533    4.3%
Consumer Goods: Non-Durable                              
Gibson Brands, Inc. (m)   n/a   8.88% (n) n/a   10,000    9,220    8,491    3.1%
Gibson Brands, Inc. (DIP Facility) (f)  L+9.00%   11.01%  2/1/2019   3,600    959    1,087    0.4%
Solaray, LLC  L+6.50%   8.82%  9/9/2023   3,247    3,222    3,247    1.2%
Solaray, LLC  L+6.50%   8.83%  9/9/2023   697    697    697    0.3%
              17,544    14,098    13,522    5.0%
Energy: Oil & Gas                              
Landpoint, LLC  L+12.75%   12.59% Cash/ 2.25% PIK  (o) 12/20/2019   2,271    2,265    2,234    0.8%
Landpoint, LLC (Revolver) (f)  L+10.50%   12.59%  12/20/2019   313    -    -    0.0%
              2,584    2,265    2,234    0.8%
Environmental Industries                              
Synergy Environmental Corporation (i)  L+6.50%   8.59%  4/29/2021   2,972    2,925    2,972    1.1%
Synergy Environmental Corporation (i)  L+6.50%   8.59%  4/29/2021   497    489    497    0.2%
Synergy Environmental Corporation (Delayed Draw) (f) (g)  L+6.50%   8.59%  4/29/2021   1,331    848    848    0.3%
Synergy Environmental Corporation (Revolver) (f)  L+6.50%   8.59%  4/29/2021   671    47    47    0.0%
              5,471    4,309    4,364    1.6%

 

See Notes to Consolidated Financial Statements. 

 

 7 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 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                              
American Optics Holdco, Inc. (e) (p)  L+8.00%   10.09%  9/13/2022   4,113   $4,041   $4,168    1.5%
American Optics Holdco, Inc. (Revolver) (e) (f) (p)   L+8.00%   10.09%  9/13/2022   440    -    -    0.0%
American Optics Holdco, Inc. (e) (p)  L+8.00%   10.09%  9/13/2022   756    743    767    0.3%
American Optics Holdco, Inc. (Revolver) (e) (f) (p)  L+8.00%   10.09%  9/13/2022   440    -    -    0.0%
Beaver-Visitec International Holdings, Inc.  L+5.00%   7.09%  8/19/2023   4,913    4,875    4,937    1.8%
Edge Systems Holdings Corp.  L+7.75%   10.06%  12/1/2021   3,341    3,292    3,402    1.3%
Edge Systems Holdings Corp. (Revolver) (f)  P+6.75%   11.75%  12/1/2021   260    49    49    0.0%
Familia Dental Group Holdings, LLC (i)  L+8.00%   10.09%  4/8/2021   5,156    5,105    5,208    1.9%
Familia Dental Group Holdings, LLC  L+8.00%   10.09%  4/8/2021   496    496    501    0.2%
Familia Dental Group Holdings, LLC (Revolver) (f)  L+8.00%   10.09%  4/8/2021   573    344    344    0.1%
              20,488    18,945    19,376    7.1%
High Tech Industries                              
Corbett Technology Solutions, Inc. (i)  L+7.00%   9.09%  11/7/2021   5,051    4,994    5,102    1.9%
Corbett Technology Solutions, Inc. (Revolver) (f)  L+7.00%   9.09%  11/7/2021   867    412    412    0.2%
Energy Services Group, LLC  L+9.82%   11.92%  5/4/2022   4,505    4,456    4,550    1.7%
Energy Services Group, LLC (e) (q)  L+9.82%   10.82%  5/4/2022   5,359    5,309    5,386    2.0%
Energy Services Group, LLC  L+9.82%   11.92%  5/4/2022   1,282    1,266    1,295    0.5%
Newforma, Inc. (i)  L+7.50%   9.83%  6/30/2022   14,888    14,701    15,036    5.6%
Newforma, Inc. (Revolver) (f)  L+7.50%   9.83%  6/30/2022   1,250    -    -    0.0%
Prototek Sheetmetal Fabrication, LLC  L+7.00%   9.09%  12/12/2022   3,483    3,420    3,531    1.3%
Prototek Sheetmetal Fabrication, LLC (Delayed Draw) (f) (g)  L+7.00%   9.09%  12/12/2022   2,333    -    -    0.0%
Prototek Sheetmetal Fabrication, LLC (Revolver) (f)  L+7.00%   9.09%  12/12/2022   233    -    -    0.0%
RPL Bidco Limited  (e) (p) (q)  L+7.50%   8.12%  11/9/2023   14,264    14,101    14,363    5.3%
RPL Bidco Limited (e) (f) (p) (q)  L+7.50%   8.12%  11/9/2023   2,113    -    -    0.0%
RPL Bidco Limited (Revolver) (e) (f) (p) (q)  L+7.50%   8.12%  11/9/2023   528    -    -    0.0%
              56,156    48,659    49,675    18.5%
Hotels, Gaming & Leisure                              
BC Equity Ventures LLC  L+6.50%   8.81%  8/31/2022   2,573    2,533    2,601    1.0%
TRG, LLC  L+12.10%   9.48% Cash/ 4.60% PIK  (r) 3/31/2021   17,114    17,016    18,295    6.7%
TRG, LLC (CapEx) (f)  L+9.50%   9.48% Cash/ 2.00% PIK   3/31/2021   1,643    1,353    1,455    0.5%
TRG, LLC (Revolver) (f)  L+9.50%   11.48%  3/31/2021   262    131    140    0.1%
              21,592    21,033    22,491    8.3%
Media: Advertising, Printing & Publishing                              
AdTheorent, Inc.  L+10.50%   12.48%  12/22/2021   4,813    4,800    4,798    1.8%
Atlas Sign Industries of FLA, LLC (i)  L+9.50%   11.59%  5/14/2023   3,500    3,305    3,385    1.2%
Destination Media, Inc. (i)  L+6.50%   8.59%  4/7/2022   7,466    7,377    7,555    2.8%
Destination Media, Inc. (Revolver) (f)  L+6.50%   8.59%  4/7/2022   542    -    -    0.0%
MC Sign Lessor Corp.  L+7.00%   8.98%  12/22/2022   9,975    9,792    10,175    3.8%
MC Sign Lessor Corp. (Delayed Draw) (f) (g)  L+7.00%   8.98%  12/22/2022   2,083    -    -    0.0%
MC Sign Lessor Corp. (Revolver) (f)  L+7.00%   8.98%  12/22/2022   625    417    417    0.2%
              29,004    25,691    26,330    9.8%
Media: Broadcasting & Subscription                              
Jerry Lee Radio, LLC  L+9.50%   11.59%  12/17/2020   10,492    10,346    10,492    3.9%
              10,492    10,346    10,492    3.9%
Retail                              
Bluestem Brands, Inc.  L+7.50%   9.59%  11/6/2020   2,517    2,503    1,661    0.6%
Forman Mills, Inc. (i)  L+7.50%   9.59%  10/4/2021   8,436    8,318    8,373    3.1%
LuLu’s Fashion Lounge, LLC  L+7.00%   9.09%  8/28/2022   4,719    4,597    4,813    1.8%
The Worth Collection, Ltd. (i)  L+8.50%   10.59%  9/29/2021   10,588    10,438    9,296    3.4%
Yandy Holding, LLC  L+11.00%   13.09%  9/30/2019   4,202    4,183    4,168    1.5%
Yandy Holding, LLC (Revolver) (f)  L+11.00%   13.09%  9/30/2019   907    -    -    0.0%
              31,369    30,039    28,311    10.4%
Services: Business                              
APCO Worldwide, Inc.  L+8.00%   10.09%  6/30/2022   5,000    4,917    5,008    1.8%
Burroughs, Inc. (i)  L+7.50%   9.48%  12/22/2022   5,963    5,879    5,721    2.1%
Burroughs, Inc. (Revolver)  L+7.50%   9.48%  12/22/2022   750    750    720    0.3%
Curion Holdings, LLC (i)  L+7.00%   9.09%  5/2/2022   3,835    3,789    3,775    1.4%
Curion Holdings, LLC (Revolver) (f)  L+7.00%   9.09%  5/2/2022   308    77    76    0.0%
EB Employee Solutions, LLC (i)  L+8.00%   10.09%  2/28/2019   3,146    3,130    3,111    1.1%
First Call Resolution, LLC (i)  L+7.00%   8.98%  9/22/2022   4,122    4,070    4,205    1.6%
Madison Logic, Inc. (i)  L+8.00%   10.09%  11/30/2021   10,064    9,916    10,064    3.7%
Madison Logic, Inc. (Revolver) (f)  L+8.00%   10.09%  11/30/2021   988    -    -    0.0%
              34,176    32,528    32,680    12.0%

 

See Notes to Consolidated Financial Statements. 

 

 8 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 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)
 
Services: Consumer                              
PeopleConnect Intermediate, LLC  L+6.50%   8.81%  7/1/2020   4,420   $4,413   $4,420    1.6%
PeopleConnect Intermediate, LLC  L+12.50%   14.81%  7/1/2020   4,710    4,678    4,698    1.7%
PeopleConnect Intermediate, LLC (Revolver) (f)  L+9.50%   11.81%  7/1/2020   236    118    118    0.0%
              9,366    9,209    9,236    3.3%
Utilities: Electric                              
CRCI Holdings, Inc.  L+5.50%   8.17%  8/31/2023   2,782    2,760    2,785    1.0%
              2,782    2,760    2,785    1.0%
Utilities: Water                              
RedZone Robotics, Inc.  L+6.75%   8.84%  6/4/2023   951    932    932    0.3%
RedZone Robotics, Inc. (Revolver) (f)  L+6.75%   8.84%  6/4/2023   158    -    -    0.0%
              1,109    932    932    0.3%
Wholesale                              
Mid-West Wholesale Hardware Co. (i)  L+8.00%   10.09%  2/9/2022   16,484    16,224    16,502    6.1%
Mid-West Wholesale Hardware Co. (Revolver) (f)  L+8.00%   10.09%  2/9/2022   4,421    2,211    2,211    0.8%
Nearly Natural, Inc. (i)  L+7.00%   9.33%  12/15/2022   6,965    6,839    7,056    2.6%
Nearly Natural, Inc. (Revolver) (f)  L+7.00%   9.33%  12/15/2022   1,522    -    -    0.0%
              29,392    25,274    25,769    9.5%
Total Non-Controlled/Non-Affiliate Senior Secured Loans             371,182    331,005    334,034    123.3%
                               
Unitranche Secured Loans (s)                              
Chemicals, Plastics & Rubber                              
MFG Chemical, LLC (i)  L+6.00%   8.09%  6/23/2022   10,477    10,344    10,445    3.9%
MFG Chemical, LLC (Delayed Draw) (f) (g)  L+6.00%   8.09%  6/23/2022   1,135    -    -    0.0%
              11,612    10,344    10,445    3.9%
Consumer Goods: Durable                              
RugsUSA, LLC  L+6.50%   8.84%  4/30/2023   4,000    3,961    4,018    1.5%
              4,000    3,961    4,018    1.5%
Consumer Goods: Non-Durable                              
Incipio Technologies, Inc. (t)  L+9.06%   10.58% Cash/ 0.56% PIK  (u) 6/30/2019   13,803    13,690    13,307    4.9%
Incipio Technologies, Inc. (v)  L+8.50%   10.58%  6/30/2019   3,613    3,613    3,613    1.3%
              17,416    17,303    16,920    6.2%
Healthcare & Pharmaceuticals                              
Collaborative Neuroscience Network, LLC  L+11.50%   13.59%  n/a (w)   6,120    6,085    5,970    2.2%
Collaborative Neuroscience Network, LLC  n/a   12.00% Cash/ 3.00% PIK   n/a (w)  299    299    299    0.1%
Collaborative Neuroscience Network, LLC (Revolver)  L+10.00%   12.09%  n/a (w)  200    192    200    0.1%
Priority Ambulance, LLC (i)  L+6.50%   8.83%  4/12/2022   9,258    9,107    9,272    3.5%
Priority Ambulance, LLC  L+6.50%   8.83%  4/12/2022   674    674    674    0.2%
              16,551    16,357    16,415    6.1%
Hotels, Gaming & Leisure                              
Playtime, LLC  L+7.50%   9.59%  12/31/2021   3,914    3,914    3,687    1.4%
              3,914    3,914    3,687    1.4%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans             53,493    51,879    51,485    19.1%
                               
Junior Secured Loans                              
Banking, Finance, Insurance & Real Estate                              
Confie Seguros Holdings II Co.  L+9.50%   11.81%  5/8/2019   8,594    8,441    8,357    3.1%
              8,594    8,441    8,357    3.1%
Beverage, Food & Tobacco                              
CSM Bakery Supplies, LLC  L+7.75%   10.06%  7/3/2021   5,792    5,792    5,459    2.0%
              5,792    5,792    5,459    2.0%
Consumer Goods: Non-Durable                              
Incipio Technologies, Inc. (x)  n/a   10.70% PIK  (n) 12/31/2020   3,766    -    1,143    0.4%
Incipio Technologies, Inc. (y)  n/a   10.70% PIK  (n) 12/31/2020   7,194    -    -    0.0%
              10,960    -    1,143    0.4%
High Tech Industries                              
Answers Finance, LLC  P+7.90%   9.00% (z) 9/15/2021   392    390    382    0.2%
Micro Holdings Corp.  L+7.50%   9.59%  8/18/2025   3,000    2,972    3,032    1.1%
              3,392    3,362    3,414    1.3%

 

See Notes to Consolidated Financial Statements. 

 

 9 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 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)
 
Media: Broadcasting & Subscription                              
Mergermarket Bidco Limited  L+7.25%   9.32%  8/3/2025   4,500   $4,457   $4,511    1.7%
              4,500    4,457    4,511    1.7%
Media: Diversified & Production                              
The Octave Music Group, Inc.  L+8.25%   10.25%  5/27/2022   5,000    4,951    5,006    1.8%
              5,000    4,951    5,006    1.8%
Services: Consumer                              
Education Corporation of America  L+11.00%   13.33%  3/31/2020   625    622    625    0.2%
              625    622    625    0.2%
Total Non-Controlled/Non-Affiliate Junior Secured Loans             38,863    27,625    28,515    10.5%
                               
Equity Securities  (aa) (ab)                              
Banking, Finance, Insurance & Real Estate                              
PKS Holdings, LLC (warrant to purchase 14,247 class A preferred units) (e)  -   - (ac) 11/30/2027   -    116    107    0.0%
                   116    107    0.0%
Chemicals, Plastics & Rubber                              
Valudor Products, LLC (501,014 class A-1 units)  -   - (ac) -   -    501    478    0.2%
                   501    478    0.2%
Healthcare & Pharmaceuticals                              
Collaborative Neuroscience Network, LLC (warrant to purchase up to 2 LLC units)  -   - (ac) 12/27/2022   -    -    172    0.0%
Collaborative Neuroscience Network, LLC (warrant to purchase up to 2 LLC units)  -   - (ac) 12/31/2027   -    -    -    0.0%
                   -    172    0.0%
High Tech Industries                              
Answers Finance, LLC (76,539 shares of common stock)  -   - (ac) -   -    2,413    842    0.3%
                   2,413    842    0.3%
Hotels, Gaming & Leisure                              
Playtime, LLC - Preferred Units (8,665 units)  -   - (ac) -   -    200    31    0.0%
                   200    31    0.0%
Media: Advertising, Printing & Publishing                              
AdTheorent, Inc. (128,866 class A voting units)  -   - (ac) -   -    129    156    0.1%
Atlas Sign Industries of FLA, LLC (warrant to purchase 0.8% of the equity)  -   - (ac) -   -    125    125    0.0%
InMobi Pte, Ltd. (represents the right to purchase 2.80% of the equity) (e) (p)  -   - (ac) 9/18/2025   -    -    219    0.1%
                   254    500    0.2%
Retail                              
The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units)  -   -  -   -    86    125    0.0%
The Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units)  -   -  -   -    1    -    0.0%
                   87    125    0.0%
Services: Business                              
APCO Worldwide, Inc. (100 class A voting common stock)  -   - (ac) -   -    395    414    0.2%
                   395    414    0.2%
Services: Consumer                              
Education Corporation of America - Series G Preferred Stock (8,333 shares)  -   12.00% PIK  -   -    8,889    8,346    3.1%
                   8,889    8,346    3.1%
Wholesale                              
Nearly Natural, Inc. (152,174 class A units)  -   - (ac) -   -    152    171    0.1%
                   152    171    0.1%
Total Non-Controlled/Non-Affiliate Equity Securities                  13,007    11,186    4.1%
Total Non-Controlled/Non-Affiliate Company Investments                 $423,516   $425,220    157.0%
                               
Non-Controlled Affiliate Company Investments (ad)                              
Senior Secured Loans                              
Banking, Finance, Insurance & Real Estate                              
American Community Homes, Inc.  L+10.00%   12.09%  7/22/2019   7,333    7,283    7,315    2.7%
American Community Homes, Inc.  L+14.50%   12.09% Cash/ 4.50% PIK  7/22/2019   4,345    4,320    4,330    1.6%
American Community Homes, Inc.  L+14.50%   12.09% Cash/ 4.50% PIK  n/a (w)   555    550    555    0.2%
American Community Homes, Inc.  L+10.00%   12.09%  7/22/2019   444    437    444    0.2%
American Community Homes, Inc.  L+14.50%   12.09% Cash/ 4.50% PIK  7/22/2019   234    230    233    0.1%
American Community Homes, Inc. (Delayed Draw)(f) (g)   L+10.00%   12.09% 7/22/2019   444    -    -    0.0%
American Community Homes, Inc. (Delayed Draw)(f) (g)  L+14.50%   12.09% Cash/ 4.50% PIK  7/22/2019   222    -    -    0.0%
              13,577    12,820    12,877    4.8%

 

See Notes to Consolidated Financial Statements. 

 

 10 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited) 

June 30, 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)
 
Consumer Goods: Non-Durable                              
Millennial Brands LLC  n/a   12.00% PIK (n) 8/29/2019   1,157   1,157   -    0.0%
Millennial Brands LLC  n/a   15.00% PIK (n) 8/29/2019   422    416    -    0.0%
Millennial Brands LLC  n/a   17.00% PIK (n) 9/30/2018   235    235    -    0.0%
Millennial Brands LLC  n/a   16.50% PIK (n) 8/29/2019   550    534    188    0.1%
              2,364    2,342    188    0.1%
Containers, Packaging & Glass                              
Summit Container Corporation (i)  L+8.00%   10.09%  1/6/2021   3,629    3,626    3,495    1.3%
Summit Container Corporation (Revolver) (f) (i)  L+8.00%   10.09%  1/6/2021   5,500    4,887    4,887    1.8%
              9,129    8,513    8,382    3.1%
Healthcare & Pharmaceuticals                              
Rockdale Blackhawk, LLC  L+13.00%   15.09%  3/31/2020   10,923    10,465    12,753    4.7%
Rockdale Blackhawk, LLC (Capex)  L+13.00%   15.09%  3/31/2020   549    549    641    0.2%
Rockdale Blackhawk, LLC (Revolver)  L+13.00%   15.09%  3/31/2020   1,849    1,849    2,159    0.8%
Rockdale Blackhawk, LLC (Revolver)  L+13.00%   15.09%  3/31/2020   3,236    3,236    3,778    1.4%
Rockdale Blackhawk, LLC (Revolver)  L+13.00%   15.09%  3/31/2020   2,288    2,288    2,672    1.0%
SHI Holdings, Inc. (i)  L+10.25%   12.34%  7/10/2019   2,611    2,601    2,611    1.0%
SHI Holdings, Inc. (Revolver) (f)   L+10.25%   12.34%  7/10/2019   3,136    2,833    2,839    1.0%
              24,592    23,821    27,453    10.1%
Retail                              
Luxury Optical Holdings Co.  L+8.00%   10.09% PIK  9/12/2019   4,463    4,441    3,903    1.4%
Luxury Optical Holdings Co. (Delayed Draw) (f) (g)  L+11.50%   13.59%  9/12/2019   1,059    624    622    0.2%
Luxury Optical Holdings Co. (Revolver)  L+8.00%   10.09% PIK  9/12/2019   206    206    180    0.1%
TPP Operating, Inc.  n/a   n/a (n) 11/8/2018   9,370    9,330    -    0.0%
TPP Operating, Inc.  n/a   n/a (n) 11/8/2018   7,671    7,629    -    0.0%
TPP Operating, Inc.  n/a   n/a (n) 11/8/2018   4,336    4,289    -    0.0%
              27,105    26,519    4,705    1.7%
Total Non-Controlled Affiliate Senior Secured Loans             76,767    74,015    53,605    19.8%
                               
Junior Secured Loans                              
Consumer Goods: Non-Durable                              
Millennial Brands LLC  n/a   15.00% PIK (n) 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 (ab)                              
Banking, Finance, Insurance & Real Estate                              
American Community Homes, Inc. (warrant to purchase up to 9.0% of the equity)  -   - (ac) 10/9/2024   -    -    161    0.1%
                   -    161    0.1%
Consumer Goods: Non-Durable                              
Millennial Brands LLC (10 preferred units)  n/a   15.00% PIK (n) -   -    967    -    0.0%
Millennial Brands LLC (75,502 common units)  -   - (ac) -   -    -    -    0.0%
                   967    -    0.0%
                               
Containers, Packaging & Glass                              
Summit Container Corporation (warrant to purchase up to 19.50% of the equity)  -   - (ac) -   -    -    -    0.0%
                   -    -    0.0%
Healthcare & Pharmaceuticals                              
Rockdale Blackhawk, LLC - LLC Units (22.65% of the LLC interest)  -   - (ac) -   -    1,093    -    0.0%
SHI Holdings, Inc. (24 shares of common stock)  -   - (ac) -   -    27    556    0.2%
                   1,120    556    0.2%
Retail                              
Luxury Optical Holdings Co. (86 shares of common stock)  -   - (ac) -   -    -    -    0.0%
TPP Operating, Inc. (24 shares of common stock)  -   - (ac) -   -    1,953    -    0.0%
TPP Operating, Inc. (16 shares of common stock) (ae)  -   - (ac) -   -    1,302    -    0.0%
                   3,255    -    0.0%
Total Non-Controlled Affiliate Equity Securities                  5,342    717    0.3%
Total Non-Controlled Affiliate Company Investments                 $81,368   $54,322    20.1%

 

See Notes to Consolidated Financial Statements. 

 

 11 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited) 

June 30, 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)
 
Controlled Affiliate Company Investments (af)                              
Equity Securities                              
Investment Funds & Vehicles                              
MRCC Senior Loan Fund I, LLC (e)  -   -  -   -   17,850   18,693    6.9%
Total Controlled Affiliate Equity Securities                  17,850    18,693    6.9%
Total Controlled Affiliate Company Investments                 $17,850   $18,693    6.9%
                               
                               
TOTAL INVESTMENTS                 $522,734   $498,235    184.0%

 

 

(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 June 30, 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.)

(d) Percentages are based on net assets of $270,708 as of June 30, 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 June 30, 2018, non-qualifying assets totaled 16.31% of the Company’s total assets.

(f) All or a portion of this commitment was unfunded at June 30, 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) The PIK portion of the interest rate for HFZ Capital Group, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.17% per annum.

(i) 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.

(j) This investment represents a note convertible to preferred shares of the borrower.

(k) A portion of this loan (principal of $2,061) 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.

(l) 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.

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

(n) This position was on non-accrual status as of June 30, 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.

(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) This is an international company.

 

 12 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited) 

June 30, 2018

(in thousands, except for shares and units)

 

 

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

(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 2.60% per annum.

(s) 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.

(t) 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.

(u) 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 0.56% per annum.

(v) A portion of this loan (principal of $46) 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) This is a demand note with no stated maturity.

(x) A portion of this loan (principal of $1,015) 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.

(y) A portion of this loan (principal of $1,938) 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.

(z) This loan is subject to a prime rate cap of 1.10%.

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

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

(ac) Represents a non-income producing security.

(ad) 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).

(ae) 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 Operating, Inc. See Note 5 in the accompanying notes to the consolidated financial statements for additional information.

(af) 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.

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                               
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%
               13,963    12,599    12,398    4.5%
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%