UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

 

For the quarterly period ended March 31, 2021

 

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) 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class   Trading Symbol(s)   Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share

  MRCC

  The Nasdaq Global Select Market

 

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 every Interactive Data File required to be submitted 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 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.

 

Large accelerated filer ¨ Accelerated filer ¨
       
Non-accelerated filer x 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 3, 2021, the registrant had 21,303,540 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, 2021 (unaudited) and December 31, 2020 3
     
  Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2021 and 2020 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited) 6
     
  Consolidated Schedules of Investments as of March 31, 2021 (unaudited) and December 31, 2020 7
     
  Notes to Consolidated Financial Statements (unaudited) 21
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 43
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 60
     
Item 4. Controls and Procedures 60
     
PART II. OTHER INFORMATION 61
     
Item 1. Legal Proceedings 61
     
Item 1A. Risk Factors 61
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63
     
Item 3. Defaults Upon Senior Securities 63
     
Item 4. Mine Safety Disclosures 63
     
Item 5. Other Information 63
     
Item 6. Exhibits 64
     
Signatures   65

 

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, 2021   December 31, 2020 
   (unaudited)      
ASSETS          
Investments, at fair value:          
Non-controlled/non-affiliate company investments  $372,493   $398,040 
Non-controlled affiliate company investments   107,819    109,715 
Controlled affiliate company investments   41,067    39,284 
Total investments, at fair value (amortized cost of: $565,821 and $596,103, respectively)   521,379    547,039 
Cash   7,723    6,769 
Restricted cash   8,165    25,657 
Unrealized gain on foreign currency forward contracts   221     
Interest receivable   5,944    4,606 
Other assets   1,041    1,052 
Total assets   544,473    585,123 
           
LIABILITIES          
Debt:          
Revolving credit facility   92,891    126,559 
2023 Notes       109,000 
2026 Notes   130,000     
SBA debentures payable   86,900    115,000 
Total debt   309,791    350,559 
Less: Unamortized deferred financing costs   (7,715)   (7,052)
Total debt, less unamortized deferred financing costs   302,076    343,507 
Interest payable   1,809    2,764 
Unrealized loss on foreign currency forward contracts       113 
Management fees payable   2,334    1,978 
Incentive fees payable   193     
Accounts payable and accrued expenses   1,863    2,327 
Directors' fees payable   35     
Total liabilities   308,310    350,689 
Net assets  $236,163   $234,434 
           
Commitments and contingencies (See Note 11)          
           
ANALYSIS OF NET ASSETS          
Common stock, $0.001 par value, 100,000 shares authorized, 21,304 and 21,304 shares issued and outstanding, respectively  $21   $21 
Capital in excess of par value   294,897    294,897 
Accumulated undistributed (overdistributed) earnings   (58,755)   (60,484)
Total net assets  $236,163   $234,434 
           
Net asset value per share  $11.08   $11.00 

 

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, 
   2021   2020 
Investment income:          
Non-controlled/non-affiliate company investments:          
Interest income  $8,233   $12,347 
Payment-in-kind interest income   654    71 
Dividend income   20    16 
Fee income   477    198 
Total investment income from non-controlled/non-affiliate company investments   9,384    12,632 
Non-controlled affiliate company investments:          
Interest income   1,562    190 
Payment-in-kind interest income   1,025    1,005 
Dividend income   42    25 
Total investment income from non-controlled affiliate company investments   2,629    1,220 
Controlled affiliate company investments:          
Dividend income   1,200    1,150 
Total investment income from controlled affiliate company investments   1,200    1,150 
Total investment income   13,213    15,002 
           
Operating expenses:          
Interest and other debt financing expenses   4,453    4,830 
Base management fees   2,334    2,551 
Incentive fees   830     
Professional fees   226    215 
Administrative service fees   356    338 
General and administrative expenses   260    231 
Directors' fees   35    35 
Expenses before incentive fee waiver   8,494    8,200 
Incentive fee waiver   (637)    
Total expenses, net of incentive fee waiver   7,857    8,200 
Net investment income before income taxes   5,356    6,802 
Income taxes, including excise taxes   30    20 
Net investment income   5,326    6,782 
           
Net gain (loss):          
Net realized gain (loss):          
Non-controlled/non-affiliate company investments   58    94 
Non-controlled affiliate company investments   (250)    
Extinguishment of debt   (2,774)    
Foreign currency forward contracts   (38)   (4)
Foreign currency and other transactions   (14)   (15)
Net realized gain (loss)   (3,018)   75 
           
Net change in unrealized gain (loss):          
Non-controlled/non-affiliate company investments   4,641    (20,355)
Non-controlled affiliate company investments   (1,802)   (13,707)
Controlled affiliate company investments   1,783    (11,087)
Foreign currency forward contracts   334    98 
Foreign currency and other transactions   (209)   1,344 
Net change in unrealized gain (loss)   4,747    (43,707)
           
Net gain (loss)   1,729    (43,632)
           
Net increase (decrease) in net assets resulting from operations  $7,055   $(36,850)
           
Per common share data:          
Net investment income per share - basic and diluted  $0.25   $0.33 
Net increase (decrease) in net assets resulting from operations per share - basic and diluted  $0.33   $(1.81)
Weighted average common shares outstanding - basic and diluted   21,304    20,445 

 

See Notes to Consolidated Financial Statements.

 

4

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(in thousands)

 

   Common Stock       Accumulated
undistributed
     
   Number of
shares
   Par
value
   Capital in excess
of par value
   (overdistributed)
earnings
   Total
net assets
 
Balances at December 31, 2019   20,445   $20   $288,850   $(39,513)  $249,357 
Net investment income               6,782    6,782 
Net realized gain (loss)               75    75 
Net change in unrealized gain (loss)               (43,707)   (43,707)
Distributions to stockholders               (7,155)   (7,155)
Balances at March 31, 2020   20,445   $20   $288,850   $(83,518)  $205,352 
                          
Balances at December 31, 2020   21,304   $21   $294,897   $(60,484)  $234,434 
Net investment income               5,326    5,326 
Net realized gain (loss)               (3,018)   (3,018)
Net change in unrealized gain (loss)               4,747    4,747 
Distributions to stockholders               (5,326)   (5,326)
Balances at March 31, 2021   21,304   $21   $294,897   $(58,755)  $236,163 

 

See Notes to Consolidated Financial Statements.

 

5

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

   Three months ended March 31, 
   2021   2020 
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $7,055   $(36,850)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:          
Net realized (gain) loss on investments   192    (94)
Net realized (gain) loss on extinguishment of debt   2,774     
Net realized (gain) loss on foreign currency forward contracts   38    4 
Net realized (gain) loss on foreign currency and other transactions   14    15 
Net change in unrealized (gain) loss on investments   (4,622)   45,149 
Net change in unrealized (gain) loss on foreign currency forward contracts   (334)   (98)
Net change in unrealized (gain) loss on foreign currency and other transactions   209    (1,344)
Payment-in-kind interest income   (1,679)   (1,076)
Net accretion of discounts and amortization of premiums   (352)   (344)
Purchases of investments   (43,744)   (71,088)
Proceeds from principal payments, sales of investments and settlement of forward contracts   75,827    52,843 
Amortization of deferred financing costs   601    484 
Changes in operating assets and liabilities:          
Interest receivable   (1,338)   (879)
Other assets   11   (264)
Interest payable   (955)   (956)
Management fees payable   356    (200)
Incentive fees payable   193    (1,374)
Accounts payable and accrued expenses   (464)   (320)
Directors' fees payable   35    35 
Net cash provided by (used in) operating activities   33,817    (16,357)
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   113,600    51,700 
Repayments of revolving credit facility   (147,450)   (38,600)
Repayment of 2023 Notes   (109,000)    
Proceeds from 2026 Notes   130,000     
Repayment of SBA debentures   (28,100)    
Payments of deferred financing costs   (4,038)    
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively   (5,326)   (7,155)
Net cash provided by (used in) financing activities   (50,314)   5,945 
           
Net increase (decrease) in Cash and Restricted cash   (16,497)   (10,412)
Effect of foreign currency exchange rates   (41)   (19)
Cash and Restricted cash, beginning of period   32,426    29,643 
Cash and Restricted cash, end of period  $15,888   $19,212 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $4,774   $5,294 
Cash paid (refund received) for income taxes, including excise taxes during the period  $400   $85 

 

The following tables provide a reconciliation of cash and restricted cash reported on the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:

 

   March 31, 2021   December 31, 2020 
Cash  $7,723   $6,769 
Restricted cash   8,165    25,657 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows  $15,888   $32,426 

 

   March 31, 2020   December 31, 2019 
Cash  $9,320   $2,234 
Restricted cash   9,892    27,409 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows  $19,212   $29,643 

 

See Notes to Consolidated Financial Statements.

              

6

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread Above
 Index (b)
  Interest Rate  

Acquisition

Date (c) 

  Maturity    Principal  

Amortized

Cost

  

Fair

Value (d)

   % of
Net Assets (e)
 
Non-Controlled/Non-Affiliate Company Investments                                 
Senior Secured Loans                                 
Automotive                                 
Hastings Manufacturing Company   L+7.75%  8.75%  4/24/2018  4/24/2023    2,783   $2,757   $2,783   1.2%
Magneto & Diesel Acquisition, Inc.   L+6.05%  7.10%  12/18/2018  12/18/2023    4,876    4,826    4,876   2.1%
Magneto & Diesel Acquisition, Inc.   L+6.05%  7.10%  7/6/2020  12/18/2023    1,918    1,888    1,944   0.8%
Magneto & Diesel Acquisition, Inc. (Revolver) (f)   L+5.50%  6.55%  12/18/2018  12/18/2023    500           0.0%
                  10,077    9,471    9,603   4.1%
Banking, Finance, Insurance & Real Estate                                 
J2 BWA Funding, LLC (Delayed Draw) (f) (g) (h)   n/a  9.00%  12/24/2020  12/24/2026    2,750    267    265   0.1%
Liftforward SPV II, LLC (g)   L+10.75%  11.25%  11/10/2016  6/30/2021    1,586    1,586    1,495   0.6%
NCBP Property, LLC (g)   L+9.50%  10.50%  12/18/2020  12/16/2022    1,950    1,934    1,942   0.8%
Oceana Australian Fixed Income Trust (g) (i) (j)   n/a  11.50%  2/25/2021  2/25/2026    8,165    8,460    8,165   3.5%
StarCompliance MidCo, LLC   L+6.75%  7.75%  1/12/2021  1/11/2027    2,000    1,962    1,998   0.8%
StarCompliance MidCo, LLC (Revolver) (f)   L+6.75%  7.75%  1/12/2021  1/11/2027    322           0.0%
US Claims Litigation Funding, LLC (Revolver) (f) (g)   L+8.75%  9.75%  11/30/2020  11/29/2024    1,500    1,200    1,190   0.5%
W3 Monroe RE Debt LLC (g)   n/a  10.00%  2/5/2021  2/4/2028    2,725    2,725    2,725   1.2%
                  20,998    18,134    17,780   7.5%
Beverage, Food & Tobacco                                 
LX/JT Intermediate Holdings, Inc. (k)   L+6.00%  7.50%  3/11/2020  3/11/2025    9,643    9,486    9,392   4.0%
LX/JT Intermediate Holdings, Inc. (Revolver) (f)   L+6.00%  7.50%  3/11/2020  3/11/2025    833           0.0%
Toojay's Management, LLC (l)   n/a  n/a(m)   10/26/2018  10/26/2022    1,448    1,407       0.0%
Toojay's Management, LLC (l)   n/a  n/a(m)   10/26/2018  10/26/2022    199    199       0.0%
Toojay's Management, LLC (Revolver) (l)   n/a  n/a(m)   10/26/2018  10/26/2022    66    66       0.0%
                  12,189    11,158    9,392   4.0%
Capital Equipment                                 
MCP Shaw Acquisitionco, LLC (k)   L+6.50%  7.50%  2/28/2020  11/28/2025    9,899    9,736    9,800   4.1%
MCP Shaw Acquisitionco, LLC (Revolver) (f)   L+6.50%  7.50%  2/28/2020  11/28/2025    1,784           0.0%
                  11,683    9,736    9,800   4.1%
Chemicals, Plastics & Rubber                                 
Midwest Composite Technologies, LLC (k)   L+6.75%  7.75%  12/2/2019  8/31/2023    14,888    14,686    14,903   6.3%
Midwest Composite Technologies, LLC   L+6.75%  7.75%  8/31/2018  8/31/2023    884    875    885   0.4%
Midwest Composite Technologies, LLC   L+6.75%  7.75%  8/31/2018  8/31/2023    508    508    509   0.2%
Midwest Composite Technologies, LLC (Revolver) (f)   L+6.75%  7.75%  8/31/2018  8/31/2023    90           0.0%
Valudor Products, LLC   L+7.50% 

7.00% Cash/

1.50% PIK

   6/18/2018  6/19/2023    1,567    1,552    1,733   0.7%
Valudor Products, LLC (n)   L+7.50%  8.50% PIK   6/18/2018  6/19/2023    222    219       0.0%
Valudor Products, LLC (Revolver) (f)   L+9.50%  10.50%  6/18/2018  6/19/2023    818    669    641   0.3%
                  18,977    18,509    18,671   7.9%
Construction & Building                                 
Cali Bamboo, LLC   L+9.50% 

8.00% Cash/
2.50% PIK

   7/10/2015  3/31/2022    6,902    6,902    6,902   2.9%
Cali Bamboo, LLC (Revolver) (f)   L+9.50% 

8.00% Cash/

2.50% PIK

   7/10/2015  3/31/2022    2,165           0.0%
Dude Solutions Holdings, Inc.   L+7.50%  8.50%  6/14/2019  6/13/2025    9,963    9,793    9,953   4.2%
Dude Solutions Holdings, Inc. (Revolver) (f)   L+7.50%  8.50%  6/14/2019  6/13/2025    1,304           0.0%
                  20,334    16,695    16,855   7.1%
Consumer Goods: Durable                                 
Parterre Flooring & Surface Systems, LLC (k)   L+9.00%  10.00%(m)  8/22/2017  8/22/2022    6,936    6,203    475   0.2%
                  6,936    6,203    475   0.2%
Consumer Goods: Non-Durable                                 
Thrasio, LLC   L+7.00%  8.00%  12/18/2020  12/18/2026    1,496    1,461    1,498   0.6%
Thrasio, LLC (Delayed Draw) (f) (h)   L+7.00%  8.00%  12/18/2020  12/18/2026    990           0.0%
                  2,486    1,461    1,498   0.6%
Environmental Industries                                 
Quest Resource Management Group, LLC   L+8.50%  9.75%  10/19/2020  10/20/2025    997    931    1,027   0.4%
Quest Resource Management Group, LLC (Delayed Draw) (f) (h)   L+8.50%  9.75%  10/19/2020  10/20/2025    1,087           0.0%
StormTrap, LLC   L+5.50%  6.50%  12/10/2018  12/8/2023    7,820    7,739    7,820   3.3%
StormTrap, LLC (Revolver) (f)   L+5.50%  6.50%  12/10/2018  12/8/2023    432           0.0%
Synergy Environmental Corporation (k)   L+6.00%  7.00%  4/29/2016  9/29/2023    2,877    2,867    2,880   1.2%
Synergy Environmental Corporation (k)   L+6.00%  7.00%  4/29/2016  9/29/2023    481    479    481   0.2%
Synergy Environmental Corporation   L+6.00%  7.00%  4/29/2016  9/29/2023    820    820    821   0.4%
Synergy Environmental Corporation (Revolver) (f)   L+6.00%  7.00%  4/29/2016  9/29/2023    671    67    67   0.0%
                  15,185    12,903    13,096   5.5%
                                  
Healthcare & Pharmaceuticals                                 
American Optics Holdco, Inc. (g) (j)   L+6.50%  7.50%  9/13/2017  9/13/2022    2,143   2,129   2,143   0.9%
American Optics Holdco, Inc. (g) (j)   L+6.50%  7.50%  9/13/2017  9/13/2022    1,616    1,604    1,616   0.7%
American Optics Holdco, Inc. (Revolver) (f) (g) (j)   L+6.50%  7.50%  9/13/2017  9/13/2022    220           0.0%
American Optics Holdco, Inc. (Revolver) (f) (g) (j)   L+6.50%  7.50%  9/13/2017  9/13/2022    440           0.0%
Apotheco, LLC   L+8.50% 

6.50% Cash/

3.00% PIK

   4/8/2019  4/8/2024    3,568    3,523    3,312   1.4%
Apotheco, LLC (Revolver)   L+8.50% 

6.50% Cash/

3.00% PIK

   4/8/2019  4/8/2024    934    934    867   0.4%
Brickell Bay Acquisition Corp.   L+7.00%  8.00%  2/12/2021  2/12/2026    4,000    3,922    3,980   1.7%
Brickell Bay Acquisition Corp. (Delayed Draw) (f) (h)   L+7.00%  8.00%  2/12/2021  2/12/2026    800           0.0%
Rockdale Blackhawk, LLC   n/a  n/a(o)   3/31/2015  n/a(p)            1,592   0.7%
Seran BioScience, LLC   L+7.25%  8.25%  12/31/2020  12/31/2025    2,500    2,453    2,497   1.0%
Seran BioScience, LLC (Revolver) (f)   L+7.25%  8.25%  12/31/2020  12/31/2025    444           0.0%
                  16,665    14,565    16,007   6.8%

  

7

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread Above
 Index (b)
  Interest Rate  

Acquisition

Date (c) 

  Maturity    Principal   Amortized Cost   Fair
Value (d)
   % of
Net Assets (e)
 
High Tech Industries                                 
Arcstor Midco, LLC   L+7.00%  8.00%  3/16/2021  3/16/2027    4,500    $4,410   $ 4,500   1.9%
MarkLogic Corporation   L+8.00%  9.00%  10/20/2020  10/20/2025    3,491    3,411    3,561   1.5%
MarkLogic Corporation (Revolver) (f)   L+6.00%  7.00%  10/20/2020  10/20/2025    269           0.0%
Mindbody, Inc.   L+8.50% 

8.00% Cash/

1.50% PIK

   2/15/2019  2/14/2025    6,413    6,327    6,201   2.6%
Mindbody, Inc. (Revolver) (f)   L+8.00%  9.00%  2/15/2019  2/14/2025    667           0.0%
Newforma, Inc. (k)   L+5.00%  6.00%  6/30/2017  6/30/2022    11,806    11,755    11,802   5.0%
Newforma, Inc. (Revolver) (f)   L+5.00%  6.00%  6/30/2017  6/30/2022    1,250           0.0%
Planful, Inc.   L+6.50%  7.50%  12/28/2018  12/30/2024    9,500    9,387    9,462   4.0%
Planful, Inc. (Delayed Draw) (f) (h)   L+6.50%  7.50%  1/11/2021  12/30/2024    1,325    442    440   0.2%
Planful, Inc. (Revolver) (f)   L+6.50%  7.50%  12/28/2018  12/30/2024    442    88    88   0.1%
RPL Bidco Limited (g) (j) (q)   L+7.00%  7.50%  11/9/2017  11/9/2023    14,488    13,821    14,485   6.1%
RPL Bidco Limited (g) (j) (q)   L+7.00%  7.50%  5/22/2018  11/9/2023    1,792    1,639    1,791   0.8%
RPL Bidco Limited (g) (j) (q)   L+7.00%  7.50%  3/3/2021  11/9/2023    1,240    1,256    1,240   0.5%
RPL Bidco Limited (Revolver) (f) (g) (j) (q)   L+7.00%  7.50%  11/9/2017  11/9/2023    551           0.0%
                  57,734   52,536    53,570  22.7%
Hotels, Gaming & Leisure                                 
Equine Network, LLC   L+8.00%  9.00%  12/31/2020  12/31/2025    1,750    1,713    1,754   0.8%
Equine Network, LLC   L+8.00%  9.00%  1/29/2021  12/31/2025    794    778    796   0.3%
Equine Network, LLC (Delayed Draw) (f) (h)   L+8.00%  9.00%  12/31/2020  12/31/2025    427           0.0%
Equine Network, LLC (Revolver) (f)   L+8.00%  9.00%  12/31/2020  12/31/2025    171           0.0%
                  3,142    2,491    2,550   1.1%
Media: Advertising, Printing & Publishing                                 
AdTheorent Holding Company, LLC   L+8.50%  9.00%  12/22/2016  12/22/2021    2,637    2,629    2,635   1.1%
Destination Media, Inc. (k)   L+5.50%  6.50%  4/7/2017  4/7/2022    4,225    4,209    4,225   1.8%
Destination Media, Inc. (Revolver) (f)   L+5.50%  6.50%  4/7/2017  4/7/2022    542           0.0%
North Haven USHC Acquisition, Inc.   L+6.50%  7.50%  10/30/2020  10/30/2025    2,494    2,449    2,519   1.1%
North Haven USHC Acquisition, Inc. (Delayed Draw) (f) (h)   L+6.50%  7.50%  3/12/2021  10/30/2025    721           0.0%
North Haven USHC Acquisition, Inc. (Revolver) (f)   L+6.50%  7.50%  10/30/2020  10/30/2025    240           0.0%
Relevate Health Group, LLC   L+6.25%  7.25%  11/20/2020  11/20/2025    1,500    1,472    1,530   0.6%
Relevate Health Group, LLC (Delayed Draw) (f) (h)   L+6.25%  7.25%  11/20/2020  11/20/2025    789    671    684   0.3%
Relevate Health Group, LLC (Revolver) (f)   L+6.25%  7.25%  11/20/2020  11/20/2025    316           0.0%
Stratus Unlimited, LLC   L+7.00%  8.00%  12/22/2017  8/30/2024    14,791    14,737    14,791   6.3%
Stratus Unlimited, LLC (Revolver) (f)   L+7.00%  8.00%  12/22/2017  8/30/2024    3,490           0.0%
XanEdu Publishing, Inc.   L+6.50%  7.50%  1/28/2020  1/28/2025    1,881    1,851    1,889   0.8%
XanEdu Publishing, Inc. (Revolver) (f)   L+6.50%  7.50%  1/28/2020  1/28/2025    495           0.0%
                  34,121    28,018    28,273   12.0%
Media: Broadcasting & Subscription                                 
Vice Group Holding, Inc.   L+12.00% 

5.50% Cash/

8.00% PIK

   5/2/2019  11/2/2022    1,438    1,432    1,438   0.6%
Vice Group Holding, Inc.   L+12.00% 

5.50% Cash/

8.00% PIK

   11/4/2019  11/2/2022    276    273    276   0.1%
Vice Group Holding, Inc.   L+12.00% 

5.50% Cash/

8.00% PIK

   5/2/2019  11/2/2022    451    451    451   0.2%
Vice Group Holding, Inc.   L+12.00% 

5.50% Cash/

8.00% PIK

   5/2/2019  11/2/2022    170    170    170   0.1%
                  2,335    2,326    2,335   1.0%
                                  
Media: Diversified & Production                                 
Attom Intermediate Holdco, LLC   L+5.75%  6.75%  1/4/2019  1/4/2024    1,955    1,932    1,934   0.8%
Attom Intermediate Holdco, LLC   L+7.50%  8.75%  6/25/2020  1/4/2024    476    469    491   0.2%
Attom Intermediate Holdco, LLC (Revolver) (f)   L+5.75%  6.75%  1/4/2019  1/4/2024    320           0.0%
Crownpeak Technology, Inc.   L+6.25%  7.25%  2/28/2019  2/28/2024    4,000    3,951    3,998   1.7%
Crownpeak Technology, Inc.   L+6.25%  7.25%  2/28/2019  2/28/2024    60    60    60   0.0%
Crownpeak Technology, Inc. (Revolver) (f)   L+6.25%  7.25%  2/28/2019  2/28/2024    167           0.0%
                  6,978    6,412    6,483   2.7%
Retail                                 
BLST Operating Company, LLC   L+9.00% 

1.00% Cash/

9.00% PIK

(m)   8/28/2020  8/28/2025    1,259    1,223    1,039   0.4%
Forman Mills, Inc. (k)   L+9.50% 

8.50% Cash/

2.00% PIK

   1/14/2020  12/30/2022    1,336    1,336    1,320   0.6%
Forman Mills, Inc. (k)   L+9.50% 

8.50% Cash/

2.00% PIK

   10/4/2016  12/30/2022    760    758    751   0.3%
Forman Mills, Inc. (k)   L+9.50% 

8.50% Cash/

2.00% PIK

   10/4/2016  12/30/2022    7,623    7,605    7,047   3.0%
LuLu's Fashion Lounge, LLC   L+9.50% 

8.00% Cash/

2.50% PIK

   8/21/2017  8/29/2022    4,055    4,015    3,467   1.5%
The Worth Collection, Ltd. (k)   L+8.50%  9.00% (m)  9/29/2016  9/29/2021    10,587    10,248    120   0.0%
                  25,620    25,185    13,744   5.8%

  

8

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread Above
 Index (b)
  Interest Rate  

Acquisition

Date (c) 

  Maturity    Principal   Amortized Cost  

Fair

Value (d)

   % of
Net Assets (e)
 
Services: Business                                 
Atlas Sign Industries of FLA, LLC (k)   L+11.50% 

11.50% Cash/

1.00% PIK

   5/14/2018  5/15/2023    3,572   $ 3,377   $ 3,561   1.5%
Burroughs, Inc. (k)   L+6.50%  7.50%  12/22/2017  12/22/2022    5,726    5,687    5,726   2.4%
Burroughs, Inc. (Revolver) (f)   L+6.50%  7.50%  12/22/2017  12/22/2022    1,220           0.0%
Certify, Inc.   L+5.75%  6.75%  2/28/2019  2/28/2024    9,000    8,916    9,000   3.8%
Certify, Inc.   L+5.75%  6.75%  2/28/2019  2/28/2024    1,227    1,227    1,227   0.5%
Certify, Inc. (Revolver) (f)   L+5.75%  6.75%  2/28/2019  2/28/2024    409    102    102   0.0%
HS4 Acquisitionco, Inc.   L+6.75%  7.75%  7/9/2019  7/9/2025    10,050    9,897    9,950   4.2%
HS4 Acquisitionco, Inc. (Revolver) (f)   L+6.75%  7.75%  7/9/2019  7/9/2025    817           0.0%
IT Global Holding, LLC   L+9.00%  10.00%  11/15/2018  11/10/2023    7,625    7,534    7,625   3.2%
IT Global Holding, LLC   L+9.00%  10.00%  7/19/2019  11/10/2023    2,843    2,801    2,843   1.2%
IT Global Holding, LLC (Revolver)   L+9.00%  10.00%  11/15/2018  11/10/2023    875    875    875   0.4%
RedZone Robotics, Inc.   L+7.25% 

7.75% Cash/

0.50% PIK

   6/1/2018  6/5/2023    220    217    220   0.1%
RedZone Robotics, Inc. (Revolver) (f)   L+7.25% 

7.75% Cash/

0.50% PIK

   6/1/2018  6/5/2023    158           0.0%
Security Services Acquisition Sub Corp. (k)   L+6.00%  7.00%  2/15/2019  2/15/2024    3,430    3,389    3,433   1.5%
Security Services Acquisition Sub Corp. (k)   L+6.00%  7.00%  2/15/2019  2/15/2024    2,467    2,467    2,470   1.1%
Security Services Acquisition Sub Corp. (k)   L+6.00%  7.00%  2/15/2019  2/15/2024    2,167    2,167    2,170   0.9%
Security Services Acquisition Sub Corp.   L+6.00%  7.00%  2/15/2019  2/15/2024    1,559    1,559    1,560   0.7%
VPS Holdings, LLC   L+7.00%  8.00%  10/5/2018  10/4/2024    3,601    3,553    3,411   1.4%
VPS Holdings, LLC   L+7.00%  8.00%  10/5/2018  10/4/2024    2,939    2,939    2,784   1.2%
VPS Holdings, LLC (Revolver) (f)   L+7.00%  8.00%  10/5/2018  10/4/2024    1,000    100    95   0.1%
                  60,905    56,807    57,052   24.2%
Services: Consumer                                 
Express Wash Acquisition Company, LLC   L+6.50%  7.50%  12/28/2020  12/26/2025    2,500    2,459    2,500   1.1%
Express Wash Acquisition Company, LLC (Revolver) (f)   L+6.50%  7.50%  12/28/2020  12/26/2025    1,000    150    150   0.1%
IDIG Parent, LLC   L+6.50%  7.50%  12/15/2020  12/15/2026    5,558    5,453    5,565   2.4%
IDIG Parent, LLC (Delayed Draw) (f) (h)    L+6.50%  7.50%  12/15/2020  12/15/2026    918           0.0%
IDIG Parent, LLC (Revolver) (f)   L+6.50%  7.50%  12/15/2020  12/15/2026    429           0.0%
Mammoth Holdings, LLC   L+6.00%  7.00%  10/16/2018  10/16/2023    1,955    1,933    1,957   0.8%
Mammoth Holdings, LLC   L+6.00%  7.00%  10/16/2018  10/16/2023    4,104    4,104    4,108   1.7%
Mammoth Holdings, LLC (Delayed Draw) (f) (h)   L+6.00%  7.00%  3/12/2021  10/16/2023    6,386           0.0%
Mammoth Holdings, LLC (Revolver) (f)   L+6.00%  7.00%  10/16/2018  10/16/2023    657           0.0%
                  23,507    14,099    14,280   6.1%
Wholesale                                 
Nearly Natural, Inc. (k)   L+6.75%  7.75%  12/15/2017  12/15/2022    6,598    6,547    6,598   2.8%
Nearly Natural, Inc.   L+6.75%  7.75%  2/16/2021  12/15/2022    3,095    3,039    3,095   1.3%
Nearly Natural, Inc. (k)   L+6.75%  7.75%  9/22/2020  12/15/2022    1,706    1,681    1,706   0.7%
Nearly Natural, Inc. (k)   L+6.75%  7.75%  8/28/2019  12/15/2022    1,858    1,858    1,858   0.8%
Nearly Natural, Inc. (Revolver) (f)   L+6.75%  7.75%  12/15/2017  12/15/2022    2,397    639    639   0.3%
                  15,654    13,764    13,896   5.9%
Total Non-Controlled/Non-Affiliate Senior Secured Loans                 365,526    320,473    305,360   129.3%
                                  
Unitranche Secured Loans (r)                                 
Chemicals, Plastics & Rubber                                 
MFG Chemical, LLC (k)   L+9.00%  10.00%  6/23/2017  6/23/2022    9,232   9,192   9,232   3.9%
MFG Chemical, LLC   L+9.00%  10.00%  3/15/2018  6/23/2022    976    976    976   0.4%
                  10,208    10,168    10,208   4.3%
Healthcare & Pharmaceuticals                                 
Priority Ambulance, LLC (s)   L+5.75%  6.75%  7/18/2018  4/12/2022    10,015    10,015    9,965   4.2%
Priority Ambulance, LLC (t)   L+5.75%  6.75%  4/12/2017  4/12/2022    1,253    1,244    1,247   0.5%
Priority Ambulance, LLC   L+5.75%  6.75%  12/13/2018  4/12/2022    668    668    665   0.3%
Priority Ambulance, LLC (Delayed Draw) (f) (h)   L+5.75%  6.75%  10/22/2020  4/12/2022    1,009           0.0%
                  12,945    11,927    11,877   5.0%
High Tech Industries                                 
Energy Services Group, LLC   L+8.42%  9.42%  5/4/2017  5/4/2022    3,892    3,878    3,892   1.6%
Energy Services Group, LLC (g) (q)   L+8.42%  9.42%  5/4/2017  5/4/2022    4,832    4,639    4,832   2.0%
Energy Services Group, LLC   L+8.42%  9.42%  5/4/2017  5/4/2022    1,108    1,094    1,108   0.5%
WillowTree, LLC   L+5.50%  6.50%  10/9/2018  10/9/2023    7,790    7,713    7,716   3.3%
                  17,622    17,324    17,548   7.4%
Telecommunications                                 
VB E1, LLC (Delayed Draw) (f) (h)   L+8.50%  9.00%  11/18/2020  11/18/2026    2,250    1,100    1,102   0.5%
                  2,250    1,100    1,102   0.5%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans                 43,025    40,519    40,735   17.2%
                                  
Junior Secured Loans                                 
Beverage, Food & Tobacco                                 
California Pizza Kitchen, Inc.   L+13.50% 

1.00% Cash/

14.00% PIK

(m)   8/19/2016  5/23/2025    1,264    1,264    1,235   0.5%
CSM Bakery Solutions, LLC   L+10.00%  11.00%  5/23/2013  2/4/2022    6,116    6,116    6,065   2.6%
                  7,380    7,380    7,300   3.1%
Capital Equipment                                 
ALTA Enterprises, LLC (g)   L+8.00%  9.80%  2/14/2020  8/13/2025    3,783    3,672    3,934   1.7%
                  3,783    3,672    3,934   1.7%
Services: Consumer                                 
Education Corporation of America   L+11.00% 

5.70% Cash/

5.50% PIK

(m)   9/3/2015  n/a(p)    833    831    765   0.3%
                  833    831    765   0.3%
Total Non-Controlled/Non-Affiliate Junior Secured Loans                 11,996    11,883    11,999   5.1%

 

9

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

Portfolio Company (a)   Spread Above
 Index (b)
  Interest Rate     Acquisition Date (c)    Maturity     Principal     Amortized Cost     Fair
Value (d)
    % of
Net Assets (e)
 
Equity Securities (u) (ah)                                  
Banking, Finance, Insurance & Real Estate                                 
J2 BWA Funding, LLC (0.7% profit sharing) (g) (v)    (w)   12/24/2020          $    $   0.0%
PKS Holdings, LLC (5,680 preferred units) (g)   n/a  5.00% PIK   11/30/2017          58    222   0.1%
PKS Holdings, LLC (5,714 preferred units) (g)   n/a  5.00% PIK   11/30/2017          9    34   0.0%
PKS Holdings, LLC (132 preferred units) (g)   n/a  5.00% PIK   11/30/2017          1    5   0.0%
PKS Holdings, LLC (916 preferred units) (g)   n/a  5.00% PIK   11/30/2017          9    34   0.0%
                       77    295   0.1%
Beverage, Food & Tobacco                                 
California Pizza Kitchen, Inc. (78,699 preferred units)    (w)   8/19/2016          5,468    1,790   0.8%
                       5,468    1,790   0.8%
Capital Equipment                                 
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) (v)    (w)   2/28/2020          119    156   0.1%