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 September 30, 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 November 1, 2021, the registrant had 21,543,540 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 September 30, 2021 (unaudited) and December 31, 2020 3
     
  Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2021 and 2020 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020 (unaudited) 6
     
  Consolidated Schedules of Investments as of September 30, 2021 (unaudited) and December 31, 2020 7
     
  Notes to Consolidated Financial Statements (unaudited) 20
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 53
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 77
     
Item 4. Controls and Procedures 78
     
PART II. OTHER INFORMATION 79
     
Item 1. Legal Proceedings 79
     
Item 1A. Risk Factors 79
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 82
     
Item 3. Defaults Upon Senior Securities 82
     
Item 4. Mine Safety Disclosures 82
     
Item 5. Other Information 82
     
Item 6. Exhibits 83
     
Signatures   84

 

 

 

 

Part I. Financial Information

Item 1. Consolidated Financial Statements

 

MONROE CAPITAL CORPORATION
 
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share data)

 

   September 30, 2021   December 31, 2020 
   (unaudited)     
ASSETS          
Investments, at fair value:          
Non-controlled/non-affiliate company investments  $416,667   $398,040 
Non-controlled affiliate company investments   95,746    109,715 
Controlled affiliate company investments   41,331    39,284 
Total investments, at fair value (amortized cost of: $582,828 and $596,103, respectively)   553,744    547,039 
Cash   7,031    6,769 
Restricted cash   8,045    25,657 
Unrealized gain on foreign currency forward contracts   863     
Interest receivable   9,389    4,606 
Other assets   379    1,052 
Total assets   579,451    585,123 
           
LIABILITIES          
Debt:          
Revolving credit facility   144,425    126,559 
2023 Notes       109,000 
2026 Notes   130,000     
SBA debentures payable   56,900    115,000 
Total debt   331,325    350,559 
Less: Unamortized deferred financing costs   (6,318)   (7,052)
Total debt, less unamortized deferred financing costs   325,007    343,507 
Interest payable   1,334    2,764 
Unrealized loss on foreign currency forward contracts       113 
Management fees payable   2,399    1,978 
Incentive fees payable   1,578     
Accounts payable and accrued expenses   2,448    2,327 
Directors' fees payable   35     
Total liabilities   332,801    350,689 
Net assets  $246,650   $234,434 
           
Commitments and contingencies (See Note 11)          
           
ANALYSIS OF NET ASSETS          
Common stock, $0.001 par value, 100,000 shares authorized, 21,544 and 21,304 shares issued and outstanding, respectively  $22   $21 
Capital in excess of par value   297,586    294,897 
Accumulated undistributed (overdistributed) earnings   (50,958)   (60,484)
Total net assets  $246,650   $234,434 
           
Net asset value per share  $11.45   $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
September 30,
   Nine months ended
September 30,
 
   2021   2020   2021   2020 
Investment income:                    
Non-controlled/non-affiliate company investments:                    
Interest income  $8,495   $9,992   $24,807   $36,800 
Payment-in-kind interest income   405    553    1,286    1,479 
Dividend income   234    5    284    (71)
Fee income   288    26    1,065    3,047 
Total investment income from non-controlled/non-affiliate company investments   9,422    10,576    27,442    41,255 
Non-controlled affiliate company investments:                    
Interest income   1,561    659    4,225    894 
Payment-in-kind interest income   2,508    1,010    5,040    3,624 
Dividend income   698    40    784    106 
Total investment income from non-controlled affiliate company investments   4,767    1,709    10,049    4,624 
Controlled affiliate company investments:                    
Dividend income   1,025    1,100    3,300    3,150 
Total investment income from controlled affiliate company investments   1,025    1,100    3,300    3,150 
Total investment income   15,214    13,385    40,791    49,029 
                     
Operating expenses:                    
Interest and other debt financing expenses   3,924    4,358    12,219    13,743 
Base management fees   2,399    2,414    7,060    7,399 
Incentive fees   1,578        2,828     
Professional fees   264    201    730    738 
Administrative service fees   327    321    1,020    973 
General and administrative expenses   304    284    833    729 
Directors' fees   35    38    109    113 
Expenses before incentive fee waivers   8,831    7,616    24,799    23,695 
Incentive fee waivers           (1,057)    
Total expenses, net of incentive fee waivers   8,831    7,616    23,742    23,695 
Net investment income before income taxes   6,383    5,769    17,049    25,334 
Income taxes, including excise taxes   71    125    254    272 
Net investment income   6,312    5,644    16,795    25,062 
                     
Net gain (loss):                    
Net realized gain (loss):                    
Non-controlled/non-affiliate company investments   (9,435)   (10)   (8,468)   2,545 
Non-controlled affiliate company investments           (250)    
Extinguishment of debt   (336)       (3,110)    
Foreign currency forward contracts   20    (15)   (55)   3 
Foreign currency and other transactions   (880)   3    (894)   (13)
Net realized gain (loss)   (10,631)   (22)   (12,777)   2,535 
                     
Net change in unrealized gain (loss):                    
Non-controlled/non-affiliate company investments   11,222    3,048    20,106    (22,527)
Non-controlled affiliate company investments   (1,076)   5,456    (2,173)   (8,153)
Controlled affiliate company investments   (54)   1,969    2,047    (4,888)
Foreign currency forward contracts   530    (55)   976    19 
Foreign currency and other transactions   936    (855)   650    521 
Net change in unrealized gain (loss)   11,558    9,563    21,606    (35,028)
                     
Net gain (loss)   927    9,541    8,829    (32,493)
                     
Net increase (decrease) in net assets resulting from operations  $7,239   $15,185   $25,624   $(7,431)
                     
Per common share data:                    
Net investment income per share - basic and diluted  $0.29   $0.26   $0.78   $1.21 
Net increase (decrease) in net assets resulting from operations per share - basic and diluted  $0.34   $0.71   $1.20   $(0.36)
Weighted average common shares outstanding - basic and diluted   21,544    21,303    21,404    20,797 

 

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 June 30, 2020   21,270   $21   $295,116   $(74,541)  $220,596 
Net investment income               5,644    5,644 
Net realized gain (loss)               (22)   (22)
Net change in unrealized gain (loss)               9,563    9,563 
Issuance of common stock, net of offering and underwriting costs   34        228        228 
Distributions to stockholders               (5,326)   (5,326)
Balances at September 30, 2020   21,304   $21   $295,344   $(64,682)  $230,683 
                          
Balances at June 30, 2021   21,544   $22   $297,586   $(52,811)  $244,797 
Net investment income               6,312    6,312 
Net realized gain (loss)               (10,631)   (10,631)
Net change in unrealized gain (loss)               11,558    11,558 
Issuance of common stock, net of offering and underwriting costs                    
Distributions to stockholders               (5,386)   (5,386)
Balances at September 30, 2021   21,544   $22   $297,586   $(50,958)  $246,650 

 

    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               25,062    25,062 
Net realized gain (loss)               2,535    2,535 
Net change in unrealized gain (loss)               (35,028)   (35,028)
Issuance of common stock, net of offering and underwriting costs   859    1    6,494        6,495 
Distributions to stockholders               (17,738)   (17,738)
Balances at September 30, 2020   21,304   $21   $295,344   $(64,682)  $230,683 
                          
Balances at December 31, 2020   21,304   $21   $294,897   $(60,484)  $234,434 
Net investment income               16,795    16,795 
Net realized gain (loss)               (12,777)   (12,777)
Net change in unrealized gain (loss)               21,606    21,606 
Issuance of common stock, net of offering and underwriting costs   240    1    2,689        2,690 
Distributions to stockholders               (16,098)   (16,098)
Balances at September 30, 2021   21,544   $22   $297,586   $(50,958)  $246,650 

 

See Notes to Consolidated Financial Statements.

 

5 

 

 

MONROE CAPITAL CORPORATION
             
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)

 

   Nine months ended September 30, 
   2021   2020 
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $25,624   $(7,431)
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   8,718    (2,545)
Net realized (gain) loss on extinguishment of debt   3,110     
Net realized (gain) loss on foreign currency forward contracts   55    (3)
Net realized (gain) loss on foreign currency and other transactions   894    13 
Net change in unrealized (gain) loss on investments   (19,980)   35,568 
Net change in unrealized (gain) loss on foreign currency forward contracts   (976)   (19)
Net change in unrealized (gain) loss on foreign currency and other transactions   (650)   (521)
Payment-in-kind interest income   (6,326)   (5,103)
Net accretion of discounts and amortization of premiums   (857)   (960)
Purchases of investments   (181,821)   (96,451)
Proceeds from principal payments, sales of investments and settlement of forward contracts   193,506    163,458 
Amortization of deferred financing costs   1,677    1,586 
Changes in operating assets and liabilities:          
Interest receivable   (4,783)   2,867 
Other assets   673    (664)
Interest payable   (1,430)   (1,072)
Management fees payable   421    (337)
Incentive fees payable   1,578    (1,374)
Accounts payable and accrued expenses   121    (438)
Directors' fees payable   35    38 
Net cash provided by (used in) operating activities   19,589    86,612 
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   272,400    56,700 
Repayments of revolving credit facility   (253,854)   (137,100)
Repayment of 2023 Notes   (109,000)    
Proceeds from 2026 Notes   130,000     
Repayment of SBA debentures   (58,100)    
Payments of deferred financing costs   (4,053)   (1,099)
Proceeds from shares sold, net of offering and underwriting costs   2,690    6,495 
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively   (16,098)   (17,738)
Net cash provided by (used in) financing activities   (36,015)   (92,742)
           
Net increase (decrease) in Cash and Restricted cash   (16,426)   (6,130)
Effect of foreign currency exchange rates   (924)   (35)
Cash and Restricted cash, beginning of period   32,426    29,643 
Cash and Restricted cash, end of period  $15,076   $23,478 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $11,889   $13,171 
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:

 

   September 30, 2021   December 31, 2020 
Cash  $7,031   $6,769 
Restricted cash   8,045    25,657 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows  $15,076   $32,426 

 

   September 30, 2020   December 31, 2019 
Cash  $4,405   $2,234 
Restricted cash   19,073    27,409 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows  $23,478   $29,643 

 

See Notes to Consolidated Financial Statements.

 

6 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

September 30, 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                                                
Aerospace & Defense                                                
Cassavant Holdings, LLC    L+6.50%     7.50 %   9/8/2021     9/8/2026      8,000   7,842   7,840     3.2 %
                            8,000     7,842     7,840     3.2 %
Automotive                                                
Born To Run, LLC    L+6.00%     7.00 %   4/1/2021     4/1/2027     3,492     3,426     3,553     1.4 %
Born To Run, LLC (Delayed Draw) (f) (g)    L+6.00%     7.00 %   4/1/2021     4/1/2027     569             0.0 %
Hastings Manufacturing Company    L+7.25%     8.25 %   4/24/2018     4/24/2023     2,581     2,561     2,581     1.1 %
Lifted Trucks Holdings, LLC    L+5.75%     6.75 %   8/2/2021     8/2/2027     7,000     6,862     6,979     2.8 %
Lifted Trucks Holdings, LLC (Delayed Draw) (f) (g)    L+5.75%     6.75 %   8/2/2021     8/2/2027     1,400             0.0 %
Lifted Trucks Holdings, LLC (Revolver) (f)    L+5.75%     6.75 %   8/2/2021     8/2/2027     1,667     444     443     0.2 %
Magneto & Diesel Acquisition, Inc.    L+6.05%     7.10 %   12/18/2018     12/18/2023     4,863     4,820     4,863     2.0 %
Magneto & Diesel Acquisition, Inc.    L+6.05%     7.10 %   7/6/2020     12/18/2023     1,913     1,887     1,952     0.8 %
Magneto & Diesel Acquisition, Inc.    L+6.05%     7.10 %   8/4/2021     12/18/2023     831     816     848     0.3 %
Magneto & Diesel Acquisition, Inc. (Revolver) (f)    L+5.50%     6.55 %   12/18/2018     12/18/2023     500             0.0 %
                            24,816     20,816     21,219     8.6 %
Banking, Finance, Insurance & Real Estate                                                
Florida East Coast Industries, LLC (h)    n/a     10.50 %   8/9/2021     6/28/2024     3,572     3,469     3,576     1.5 %
J2 BWA Funding LLC (Delayed Draw) (f) (g) (h)    n/a     9.00 %   12/24/2020     12/24/2026     2,722     482     481     0.2 %
Liftforward SPV II, LLC (h)    L+10.75%     11.25 %   11/10/2016     12/31/2021     1,006     1,006     957     0.4 %
MV Realty Holdings, LLC (Delayed Draw) (f) (g) (h)    L+9.75%     11.25 %   7/29/2021     7/29/2026     8,000     441     745     0.3 %
NCBP Property, LLC (h)    L+9.50%     10.50 %   12/18/2020     12/16/2022     1,950     1,938     1,955     0.8 %
Oceana Australian Fixed Income Trust (h) (i) (j)    n/a     10.75 %   6/29/2021     6/29/2026     3,271     3,400     3,268     1.3 %
Oceana Australian Fixed Income Trust (h) (i) (j)    n/a     11.50 %   2/25/2021     2/25/2026     7,766     8,460     7,766     3.2 %
StarCompliance MidCo, LLC    L+6.75%     7.75 %   1/12/2021     1/11/2027     2,000     1,964     2,000     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) (h)    L+8.75%     9.75 %   11/30/2020     11/29/2024     1,500     1,495     1,520     0.6 %
W3 Monroe RE Debt LLC (h)   n/a     10.00% PIK   2/5/2021     2/4/2028     2,835     2,835     2,835     1.1 %
                            34,944     25,490     25,103     10.2 %
Beverage, Food & Tobacco                                                
LVF Holdings, Inc.    L+6.25%     7.25 %   6/10/2021     6/10/2027     1,500     1,471     1,500     0.6 %
LVF Holdings, Inc.    L+6.25%     7.25 %   6/10/2021     6/10/2027     1,436     1,436     1,436     0.6 %
LVF Holdings, Inc. (Delayed Draw) (f) (g)    L+6.25%     7.25 %   6/10/2021     6/10/2027     344             0.0 %
LVF Holdings, Inc. (Revolver) (f)    L+6.25%     7.25 %   6/10/2021     6/10/2027     238     28     28     0.0 %
LX/JT Intermediate Holdings, Inc. (k)    L+6.00%     7.50 %   3/11/2020     3/11/2025     9,464     9,326     9,431     3.8 %
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 %
                            15,528     13,933     12,395     5.0 %
Capital Equipment                                                
MCP Shaw Acquisitionco, LLC (k)    L+6.50%     7.50 %   2/28/2020     11/28/2025     9,733     9,588     9,699     3.9 %
MCP Shaw Acquisitionco, LLC (Revolver) (f)    L+6.50%     7.50 %   2/28/2020     11/28/2025     1,784             0.0 %
                            11,517     9,588     9,699     3.9 %
Chemicals, Plastics & Rubber                                                
Valudor Products LLC    L+7.50%     7.00% Cash/
1.50% PIK
    6/18/2018     6/19/2023     1,579     1,566     1,842     0.8 %
Valudor Products LLC (n)    L+7.50%     8.50% PIK     6/18/2018     6/19/2023     232     229     223     0.1 %
Valudor Products LLC (Revolver) (f)    L+9.50%     10.50 %   6/18/2018     6/19/2023     1,095     1,055     1,049     0.4 %
                            2,906     2,850     3,114     1.3 %
Construction & Building                                                
Dude Solutions Holdings, Inc.    L+7.25%     8.25 %   6/14/2019     6/13/2025     9,925     9,770     9,910     4.0 %
Dude Solutions Holdings, Inc. (Revolver) (f)    L+7.25%     8.25 %   6/14/2019     6/13/2025     1,304             0.0 %
TCFIII OWL Buyer LLC    L+6.00%     7.00 %   4/19/2021     4/17/2026     2,045     2,012     2,045     0.8 %
TCFIII OWL Buyer LLC (Delayed Draw) (f) (g)    L+6.00%     7.00 %   4/19/2021     4/17/2026     2,495     1,876     1,876     0.8 %
                            15,769     13,658     13,831     5.6 %
Consumer Goods: Durable                                                
Independence Buyer, Inc.    L+5.75%     6.75 %   8/3/2021     8/3/2026     6,000     5,883     6,000     2.4 %
Independence Buyer, Inc. (Revolver) (f)    L+5.75%     6.75 %   8/3/2021     8/3/2026     1,423             0.0 %
Parterre Flooring & Surface Systems LLC (k)    L+9.00%     10.00 %(m)   8/22/2017     8/22/2022     6,936     5,881     151     0.1 %
Recycled Plastics Industries, LLC    L+6.75%     7.75 %   8/4/2021     8/4/2026     3,500     3,431     3,500     1.4 %
Recycled Plastics Industries, LLC (Revolver) (f)    L+6.75%     7.75 %   8/4/2021     8/4/2026     473             0.0 %
                            18,332     15,195     9,651     3.9 %
Consumer Goods: Non-Durable                                                
The Kyjen Company, LLC    L+6.50%     7.50 %   5/14/2021     4/3/2026     995     986     1,000     0.4 %
The Kyjen Company, LLC (Revolver) (f)    L+6.50%     7.50 %   5/14/2021     4/3/2026     105     43     43     0.0 %
Thrasio, LLC    L+7.00%     8.00 %   12/18/2020     12/18/2026     1,489     1,456     1,489     0.6 %
Thrasio, LLC    L+7.00%     8.00 %   12/18/2020     12/18/2026     988     988     988     0.4 %
                            3,577     3,473     3,520     1.4 %
Environmental Industries                                                
Quest Resource Management Group, LLC    L+7.50%     8.75 %   10/19/2020     10/20/2025     993     926     1,017     0.4 %
Quest Resource Management Group, LLC (Delayed Draw) (f) (g)    L+7.50%     8.75 %   10/19/2020     10/20/2025     1,087             0.0 %
StormTrap, LLC    L+5.50%     6.50 %   12/10/2018     12/8/2023     7,170     7,108     7,170     2.9 %
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     2,861     2,853     2,861     1.2 %
Synergy Environmental Corporation (k)    L+6.00%     7.00 %   4/29/2016     9/29/2023     478     477     478     0.2 %
Synergy Environmental Corporation    L+6.00%     7.00 %   4/29/2016     9/29/2023     813     813     813     0.3 %
Synergy Environmental Corporation (Revolver) (f)    L+6.00%     7.00 %   4/29/2016     9/29/2023     671             0.0 %
                            14,505     12,177     12,339     5.0 %
Healthcare & Pharmaceuticals                                                
Apotheco, LLC    L+8.50%     6.50% Cash/
3.00% PIK
    4/8/2019     4/8/2024     3,614     3,575     3,432     1.4 %
Apotheco, LLC (Revolver)    L+8.50%     6.50% Cash/
3.00% PIK
    4/8/2019     4/8/2024     948     948     900     0.4 %
Brickell Bay Acquisition Corp.    L+6.50%     7.50 %   2/12/2021     2/12/2026     1,904     1,869     1,904     0.8 %
Brickell Bay Acquisition Corp. (Delayed Draw) (f) (g)    L+6.50%     7.50 %   2/12/2021     2/12/2026     382             0.0 %
Caravel Autism Health, LLC    L+5.75%     6.75 %   6/30/2021     6/30/2027     5,000     4,903     5,000     2.0 %
Caravel Autism Health, LLC (Delayed Draw) (f) (g)    L+5.75%     6.75 %   6/30/2021     6/30/2027     3,750     188     188     0.1 %
Caravel Autism Health, LLC (Revolver) (f)    L+5.75%     6.75 %   6/30/2021     6/30/2027     1,250     125     125     0.1 %
Dorado Acquisition, Inc.    L+6.75%     7.75 %   6/30/2021     6/30/2026     5,000     4,903     4,992     2.0 %
Dorado Acquisition, Inc. (Delayed Draw) (f) (g)    L+6.75%     7.75 %   6/30/2021     6/30/2026     216             0.0 %
Dorado Acquisition, Inc. (Revolver) (f)    L+6.75%     7.75 %   6/30/2021     6/30/2026     596             0.0 %
INH Buyer, Inc.    L+6.00%     7.00 %   6/30/2021     6/28/2028     2,946     2,918     2,945     1.2 %
NationsBenefits, LLC    L+7.00%     8.00 %   8/20/2021     8/20/2026     4,000     3,921     4,002     1.6 %
NationsBenefits, LLC (Revolver) (f)    L+7.00%     8.00 %   8/20/2021     8/20/2026     445             0.0 %
Rockdale Blackhawk, LLC    n/a     n/a (o)    3/31/2015     n/a (p)           1,592     0.6 %
Seran BioScience, LLC    L+6.25%     7.25 %   12/31/2020     12/31/2025     2,488     2,445     2,497     1.0 %
Seran BioScience, LLC (Revolver) (f)    L+6.25%     7.25 %   12/31/2020     12/31/2025     444             0.0 %
                            32,983     25,795     27,577     11.2 %
High Tech Industries                                                
Arcstor Midco, LLC    L+7.00%     8.00 %   3/16/2021     3/16/2027     4,478     4,393     4,469     1.8 %
MarkLogic Corporation    L+6.00%     7.00 %   10/20/2020     10/20/2025     3,474     3,401     3,526     1.4 %
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     6,462     6,386     6,427     2.6 %
Mindbody, Inc. (Delayed Draw) (f) (g)    L+8.50%     8.00% Cash/
1.50% PIK
    9/22/2021     2/14/2025     667             0.0 %
Mindbody, Inc. (Revolver) (f)    L+8.00%     9.00 %   2/15/2019     2/14/2025     667             0.0 %
Newforma, Inc. (k)    L+5.50%     6.50 %   6/30/2017     6/30/2022     4,077     4,067     4,077     1.7 %
Newforma, Inc. (Revolver) (f)    L+5.50%     6.50 %   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     9,404     9,462     3.8 %
Planful, Inc.    L+6.50%     7.50 %   1/11/2021     12/30/2024     1,325     1,325     1,320     0.6 %
Planful, Inc. (Revolver) (f)    L+6.50%     7.50 %   12/28/2018     12/30/2024     442     88     88     0.0 %
                            32,611     29,064     29,369     11.9 %

 

7 

 

 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

September 30, 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)
 
Hotels, Gaming & Leisure                                                
Equine Network, LLC    L+8.00%     9.00 %   12/31/2020     12/31/2025     1,741   1,707   1,743     0.7 %
Equine Network, LLC    L+8.00%     9.00 %   1/29/2021     12/31/2025     790     776     790     0.3 %
Equine Network, LLC (Delayed Draw) (f) (g)    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 %
                            3,129     2,483     2,533     1.0 %
Media: Advertising, Printing & Publishing                                                
AdTheorent, Inc.    L+8.50%     9.00 %   12/22/2016     12/22/2021     2,512     2,509     2,512     1.0 %
Destination Media, Inc. (k)    L+5.50%     6.50 %   4/7/2017     4/7/2022     2,593     2,587     2,593     1.1 %
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+6.00%     7.00 %   10/30/2020     10/30/2025     2,481     2,439     2,481     1.0 %
North Haven USHC Acquisition, Inc.    L+6.00%     7.00 %   3/12/2021     10/30/2025     719     719     726     0.3 %
North Haven USHC Acquisition, Inc. (Delayed Draw) (f) (g)    L+6.00%     7.00 %   9/3/2021     10/30/2025     1,442     483     488     0.2 %
North Haven USHC Acquisition, Inc. (Revolver) (f)    L+6.00%     7.00 %   10/30/2020     10/30/2025     240             0.0 %
Relevate Health Group, LLC    L+6.00%     7.00 %   11/20/2020     11/20/2025     1,493     1,467     1,507     0.6 %
Relevate Health Group, LLC (Delayed Draw) (f) (g)    L+6.00%     7.00 %   11/20/2020     11/20/2025     786     668     674     0.3 %
Relevate Health Group, LLC (Revolver) (f)    L+6.00%     7.00 %   11/20/2020     11/20/2025     316             0.0 %
XanEdu Publishing, Inc.    L+6.00%     7.00 %   1/28/2020     1/28/2025     4,642     4,561     4,654     1.9 %
XanEdu Publishing, Inc. (Revolver) (f)    L+6.00%     7.00 %   1/28/2020     1/28/2025     742     99     99     0.0 %
                            18,508     15,532     15,734     6.4 %
Media: Broadcasting & Subscription                                                
Vice Group Holding Inc.    L+12.00%     5.50% Cash/
8.00% PIK
    5/2/2019     11/2/2022     1,496     1,491     1,496     0.6 %
Vice Group Holding Inc.    L+12.00%     5.50% Cash/
8.00% PIK
    11/4/2019     11/2/2022     287     285     287     0.1 %
Vice Group Holding Inc.    L+12.00%     5.50% Cash/
8.00% PIK
    5/2/2019     11/2/2022     469     469     469     0.2 %
Vice Group Holding Inc.    L+12.00%     5.50% Cash/
8.00% PIK
    5/2/2019     11/2/2022     177     177     177     0.1 %
                            2,429     2,422     2,429     1.0 %
Media: Diversified & Production                                                
Attom Intermediate Holdco, LLC    L+6.15%     7.15 %   1/4/2019     1/4/2024     1,945     1,926     1,945     0.8 %
Attom Intermediate Holdco, LLC    L+6.15%     7.15 %   6/25/2020     1/4/2024     474     468     474     0.2 %
Attom Intermediate Holdco, LLC    L+6.15%     7.15 %   7/1/2021     1/4/2024     279     274     279     0.1 %
Attom Intermediate Holdco, LLC (Revolver) (f)    L+5.75%     6.75 %   1/4/2019     1/4/2024     320             0.0 %
Crownpeak Technology, Inc.    L+5.75%     6.75 %   2/28/2019     2/28/2024     4,000     3,958     4,000     1.6 %
Crownpeak Technology, Inc.    L+5.75%     6.75 %   2/28/2019     2/28/2024     60     60     60     0.0 %
Crownpeak Technology, Inc. (Revolver) (f)    L+5.75%     6.75 %   2/28/2019     2/28/2024     167             0.0 %
CyberGrants Holdings, LLC    L+6.50%     7.25 %   9/8/2021     9/8/2027     10,900     10,738     10,737     4.4 %
CyberGrants Holdings, LLC (Delayed Draw) (f) (g)    L+6.50%     7.25 %   9/8/2021     9/8/2027     1,069             0.0 %
CyberGrants Holdings, LLC (Revolver) (f)    L+6.50%     7.25 %   9/8/2021     9/8/2027     1,069             0.0 %
                            20,283     17,424     17,495     7.1 %
Retail                                                
BLST Operating Company, LLC    L+8.50%     1.00% Cash/
9.00% PIK
(m)   8/28/2020     8/28/2025     1,147     1,054     1,142     0.5 %
Forman Mills, Inc. (k)    L+9.50%     8.50% Cash/
2.00% PIK
    1/14/2020     12/30/2022     1,336     1,336     1,329     0.5 %
Forman Mills, Inc. (k)    L+9.50%     8.50% Cash/
2.00% PIK
    10/4/2016     12/30/2022     441     441     439     0.2 %
Forman Mills, Inc. (k)    L+9.50%     8.50% Cash/
2.00% PIK
    10/4/2016     12/30/2022     7,623     7,623     7,497     3.0 %
LuLu's Fashion Lounge, LLC    L+9.50%     8.00% Cash/
2.50% PIK
    8/21/2017     8/29/2022     3,919     3,893     3,351     1.4 %
                            14,466     14,347     13,758     5.6 %
Services: Business                                                
Aras Corporation    L+7.00%     4.25% Cash/
3.75% PIK
    4/13/2021     4/13/2027     1,514     1,486     1,544     0.6 %
Aras Corporation (Delayed Draw) (f) (g)    L+7.00%     4.25% Cash/
3.75% PIK
    4/13/2021     4/13/2027     200             0.0 %
Aras Corporation (Revolver) (f)    L+7.00%     4.25% Cash/
3.75% PIK
    4/13/2021     4/13/2027     150             0.0 %
Atlas Sign Industries of FLA, LLC (k)    L+11.50%     11.50% Cash/
1.00% PIK
    5/14/2018     5/15/2023     3,590     3,395     3,590     1.5 %
Burroughs, Inc. (k)    L+6.50%     7.50 %   12/22/2017     12/22/2022     5,576     5,550     5,576     2.3 %
Burroughs, Inc. (Revolver) (f)    L+6.50%     7.50 %   12/22/2017     12/22/2022     1,220             0.0 %
Certify, Inc.    L+5.50%     6.50 %   2/28/2019     2/28/2024     9,000     8,928     9,000     3.6 %
Certify, Inc.    L+5.50%     6.50 %   2/28/2019     2/28/2024     1,227     1,227     1,227     0.5 %
Certify, Inc. (Revolver) (f)    L+5.50%     6.50 %   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     10,025     9,887     9,919     4.0 %
HS4 Acquisitionco, Inc. (Revolver) (f)    L+6.75%     7.75 %   7/9/2019     7/9/2025     817             0.0 %
IT Global Holding LLC (h)    L+9.00%     10.00 %   11/15/2018     11/10/2023     7,101     7,030     7,677     3.1 %
IT Global Holding LLC (h)    L+9.00%     10.00 %   7/19/2019     11/10/2023     2,648     2,614     2,863     1.2 %
IT Global Holding LLC (Revolver) (h)    L+9.00%     10.00 %   11/15/2018     11/10/2023     875     875     946     0.4 %
RedZone Robotics, Inc.    L+6.75%     7.75 %   6/1/2018     6/5/2023     215     213     215     0.1 %
RedZone Robotics, Inc. (Revolver) (f)    L+6.75%     7.75 %   6/1/2018     6/5/2023     158             0.0 %
Relativity ODA LLC    L+7.50%     8.50% PIK     5/12/2021     5/12/2027     1,855     1,811     1,854     0.8 %
Relativity ODA LLC (Revolver) (f)    L+7.50%     8.50% PIK     5/12/2021     5/12/2027     180             0.0 %
Security Services Acquisition Sub Corp.    L+6.00%     7.00 %   9/30/2021     2/15/2024     8,000     7,880     8,000     3.2 %
Security Services Acquisition Sub Corp. (k)    L+6.00%     7.00 %   2/15/2019     2/15/2024     3,421     3,387     3,421     1.4 %
Security Services Acquisition Sub Corp. (k)    L+6.00%     7.00 %   2/15/2019     2/15/2024     2,461     2,461     2,461     1.0 %
Security Services Acquisition Sub Corp. (k)    L+6.00%     7.00 %   2/15/2019     2/15/2024     2,162     2,162     2,162     0.9 %
Security Services Acquisition Sub Corp.    L+6.00%     7.00 %   2/15/2019     2/15/2024     1,555     1,555     1,555     0.6 %
VPS Holdings, LLC    L+9.00%     8.00% Cash/
2.00% PIK
    10/5/2018     10/4/2024     3,492     3,452     3,201     1.3 %
VPS Holdings, LLC    L+9.00%     8.00% Cash/
2.00% PIK
    10/5/2018     10/4/2024     2,852     2,852     2,614     1.1 %
VPS Holdings, LLC (Revolver) (f)    L+9.00%     8.00% Cash/
2.00% PIK
    10/5/2018     10/4/2024     1,000     100     92     0.0 %
                            71,703     66,967     68,019     27.6 %
Services: Consumer                                                
Express Wash Acquisition Company, LLC    L+6.50%     7.50 %   12/28/2020     12/26/2025     3,211     3,161     3,211     1.3 %
Express Wash Acquisition Company, LLC    L+6.50%     7.50 %   9/3/2021     12/26/2025     7,275     7,149     7,275     2.9 %
Express Wash Acquisition Company, LLC (Delayed Draw) (f) (g)    L+6.50%     7.50 %   9/3/2021     12/26/2025     3,500             0.0 %
Express Wash Acquisition Company, LLC (Delayed Draw) (f) (g)    L+6.50%     7.50 %   9/3/2021     12/26/2025     2,500     450     450     0.2 %
Express Wash Acquisition Company, LLC (Revolver) (f)    L+6.50%     7.50 %   12/28/2020     12/26/2025     750     400     400     0.2 %
IDIG Parent, LLC    L+6.00%     7.00 %   12/15/2020     12/15/2026     5,530     5,432     5,537     2.2 %
IDIG Parent, LLC    L+6.00%     7.00 %   12/15/2020     12/15/2026     918     918     919     0.4 %
IDIG Parent, LLC (Revolver) (f)    L+6.00%     7.00 %   12/15/2020     12/15/2026     429             0.0 %
Mammoth Holdings, LLC    L+6.00%     7.00 %   10/16/2018     10/16/2023     1,945     1,927     1,947     0.8 %
Mammoth Holdings, LLC    L+6.00%     7.00 %   10/16/2018     10/16/2023     4,083     4,083     4,087     1.7 %
Mammoth Holdings, LLC (Delayed Draw) (f) (g)    L+6.00%     7.00 %   3/12/2021     10/16/2023     6,371     6,060     6,066     2.4 %
Mammoth Holdings, LLC (Delayed Draw) (f) (g)    L+6.00%     7.00 %   6/15/2021     10/16/2023     1,646             0.0 %
Mammoth Holdings, LLC (Revolver) (f)    L+6.00%     7.00 %   10/16/2018     10/16/2023     657             0.0 %
                            38,815     29,580     29,892     12.1 %
Telecommunications                                                
Calabrio, Inc.    L+7.00%     8.00 %   4/16/2021     4/16/2027     3,400     3,320     3,400     1.4 %
Calabrio, Inc. (Revolver) (f)    L+7.00%     8.00 %   4/16/2021     4/16/2027     409             0.0 %
                            3,809     3,320     3,400     1.4 %
Wholesale                                                
Nearly Natural, Inc. (k)    L+11.50%     8.50% Cash/
4.00% PIK
    12/15/2017     12/15/2022     6,535     6,498     6,535     2.6 %
Nearly Natural, Inc.    L+11.50%     8.50% Cash/
4.00% PIK
    2/16/2021     12/15/2022     3,068     3,027     3,068     1.2 %
Nearly Natural, Inc. (k)    L+11.50%     8.50% Cash/
4.00% PIK
    9/22/2020     12/15/2022     1,689     1,670     1,689     0.7 %
Nearly Natural, Inc. (k)    L+11.50%     8.50% Cash/
4.00% PIK
    8/28/2019     12/15/2022     1,840     1,840     1,840     0.8 %
Nearly Natural, Inc. (Revolver)    L+11.50%     8.50% Cash/
4.00% PIK
    12/15/2017     12/15/2022     2,406     2,406     2,406     1.0 %
                            15,538     15,441     15,538     6.3 %
Total Non-Controlled/Non-Affiliate Senior Secured Loans                           404,168     347,397     344,455     139.7 %

 

8 

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

September 30, 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)
 
Unitranche Secured Loans (q)                                                
Chemicals, Plastics & Rubber                                                
MFG Chemical, LLC (k)    L+8.00%     9.00 %   6/23/2017     6/23/2022     6,441   $ 6,424   $ 6,441     2.6 %
MFG Chemical, LLC    L+8.00%     9.00 %   3/15/2018     6/23/2022     630     630     630     0.3 %
                            7,071     7,054     7,071     2.9 %
Consumer Goods: Non-Durable                                                
Vinci Brands LLC (fka Incipio, LLC)    n/a      2.00% PIK (m)   7/6/2018     2/6/2024     7,026     7,026     6,141     2.5 %
Vinci Brands LLC (fka Incipio, LLC) (ac)    n/a      2.00% PIK (m)   3/9/2018     2/6/2024     3,065     3,065         0.0 %
Vinci Brands LLC (fka Incipio, LLC) (ad)    n/a      2.00% PIK (m)   12/26/2014     2/6/2024     13,552     13,528         0.0 %
Vinci Brands LLC (fka Incipio, LLC) (ae)    n/a      2.00% PIK (m)   12/26/2014     2/6/2024     1,149     1,149         0.0 %
                            24,792     24,768     6,141     2.5 %
Healthcare & Pharmaceuticals                                                
Priority Ambulance, LLC (r)    L+6.50%     7.50 %   7/18/2018     4/12/2022     10,015     10,015     10,010     4.0 %
Priority Ambulance, LLC (s)    L+6.50%     7.50 %   4/12/2017     4/12/2022     1,253     1,248     1,253     0.5 %
Priority Ambulance, LLC    L+6.50%     7.50 %   12/13/2018     4/12/2022     659     659     659     0.3 %
Priority Ambulance, LLC    L+6.50%     7.50 %   10/22/2020     4/12/2022     996     996     995     0.4 %
                            12,923     12,918     12,917     5.2 %
High Tech Industries                                                
Energy Services Group, LLC    L+8.42%     9.42 %   5/4/2017     5/4/2022     3,781     3,773     3,781     1.5 %
Energy Services Group, LLC (h) (t)    L+8.42%     9.42 %   5/4/2017     5/4/2022     4,588     4,517     4,588     1.9 %
Energy Services Group, LLC    L+8.42%     9.42 %   5/4/2017     5/4/2022     1,076     1,063     1,076     0.4 %
WillowTree, LLC    L+5.00%     6.00 %   10/9/2018     10/9/2023     7,689     7,627     7,732     3.1 %
                            17,134     16,980     17,177     6.9 %
Telecommunications                                                
VB E1, LLC (Delayed Draw) (f) (g)    L+8.50%     9.00 %   11/18/2020     11/18/2026     2,250     1,100     1,114     0.5 %
                            2,250     1,100     1,114     0.5 %
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans                           64,170     62,820     44,420     18.0 %
                                                 
Junior Secured Loans                                                
Banking, Finance, Insurance & Real Estate                                                
Florida East Coast Industries, LLC (h)    n/a     16.00% PIK     8/9/2021     6/28/2024     1,461     1,420     1,470     0.6 %
MoneyLion, Inc. (h)    n/a     12.00 %   8/27/2021     5/1/2023     1,500     1,486     1,500     0.6 %
Witkoff/Monroe 700 JV LLC (Delayed Draw) (f) (g) (h)    n/a     8.00% Cash/
4.00% PIK
    7/2/2021     7/2/2026     5,500     4,472     4,534     1.8 %
                            8,461     7,378     7,504     3.0 %
Services: Consumer                                                
Education Corporation of America    L+11.00%     5.63% Cash/
5.50% PIK
(m)   9/3/2015     n/a (p)   833     831     576     0.2 %
                            833     831     576     0.2 %
Total Non-Controlled/Non-Affiliate Junior Secured Loans                           9,294     8,209     8,080     3.2 %
                                                 
Equity Securities (u) (v)                                                
Automotive                                                
Born To Run, LLC (269,438 Class A units)       (w)   4/1/2021             269     283     0.1 %
Lifted Trucks Holdings, LLC (111,111 Class A units) (x)       (w)   8/2/2021             111     110     0.1 %
                                  380     393     0.2 %
Banking, Finance, Insurance & Real Estate                                                
J2 BWA Funding LLC (0.7% profit sharing) (h) (x)       (w)   12/24/2020                     0.0 %
MV Realty Holdings, LLC (729 common units) (h) (x)       (w)   7/29/2021             300     295     0.2 %
MV Realty Holdings, LLC (warrant to purchase up to 0.8% of the equity) (h) (x)       (w)   7/28/2021     7/28/2031         363     532     0.2 %
PKS Holdings, LLC (5,680 preferred units) (h)    n/a     12.00% PIK     11/30/2017             58     229     0.1 %
PKS Holdings, LLC (5,714 preferred units) (h)    n/a     12.00% PIK     11/30/2017             9     35     0.0 %
PKS Holdings, LLC (132 preferred units) (h)    n/a     12.00% PIK     11/30/2017             1     5     0.0 %
PKS Holdings, LLC (916 preferred units) (h)    n/a     12.00% PIK     11/30/2017             9     35     0.0 %
Witkoff/Monroe 700 JV LLC (2,141 preferred units) (h) (x)    n/a      8.00% Cash/
4.00% PIK
    7/2/2021             2     2     0.0 %
                                  742     1,133     0.5 %
Beverage, Food & Tobacco                                                
California Pizza Kitchen, Inc. (78,699 common units)       (w)   8/19/2016             5,468     4,643     1.9 %
                                  5,468     4,643     1.9 %
Capital Equipment                                                
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) (x)       (w)   2/28/2020             119     168     0.1 %
                                  119     168     0.1 %
Chemicals, Plastics & Rubber                                                
Valudor Products LLC (501,014 Class A-1 units) (x)    n/a     10.00% PIK     6/18/2018             501     169     0.1 %
                                  501     169     0.1 %
Consumer Goods: Durable                                                
Independence Buyer, Inc. (81 Class A units)       (w)   8/3/2021             81     92     0.0 %
                                  81     92     0.0 %
Environmental Industries                                                
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity)       (w)   10/19/2020     3/19/2028         67     204     0.1 %
                                  67     204     0.1 %
Healthcare & Pharmaceuticals                                                
Dorado Acquisition, Inc. (178,891 Class A-1 units)       (w)   6/30/2021