Monroe Capital Corporation

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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, 2019

¨	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 5.75% Notes due 2023		MRCC MRCCL		The Nasdaq Global Select Market 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	x

Non-accelerated filer	¨	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 5, 2019, 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 September 30, 2019 (unaudited) and December 31, 2018	3

	Consolidated Statements of Operations for the three and nine months ended September 30, 2019 (unaudited) and 2018 (unaudited)	4

	Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2019 (unaudited) and 2018 (unaudited)	5

	Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 (unaudited) and 2018 (unaudited)	6

	Consolidated Schedules of Investments as of September 30, 2019 (unaudited) and December 31, 2018	7

	Notes to Consolidated Financial Statements (unaudited)	20

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	47

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	66

Item 4.	Controls and Procedures	67

PART II. OTHER INFORMATION		68

Item 1.	Legal Proceedings	68

Item 1A.	Risk Factors	68

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	69

Item 3.	Defaults Upon Senior Securities	69

Item 4.	Mine Safety Disclosures	69

Item 5.	Other Information	69

Item 6.	Exhibits	70

Signatures		71

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, 2019			December 31, 2018
	(unaudited)
ASSETS
Investments, at fair value:
Non-controlled/non-affiliate company investments	$	553,035		$	468,720
Non-controlled affiliate company investments		61,746			57,267
Controlled affiliate company investments		42,669			27,634
Total investments, at fair value (amortized cost of: $675,060 and $564,124, respectively)		657,450			553,621
Cash		3,199			3,744
Restricted cash		20,776			13,982
Unrealized gain on foreign currency forward contracts		83			16
Interest receivable		10,714			7,774
Other assets		576			692
Total assets		692,798			579,829

LIABILITIES
Debt:
Revolving credit facility		216,638			136,026
2023 Notes		109,000			69,000
SBA debentures payable		115,000			115,000
Total debt		440,638			320,026
Less: Unamortized deferred financing costs		(8,504	)		(6,262	)
Total debt, less unamortized deferred financing costs		432,134			313,764
Interest payable		1,787			2,550
Management fees payable		2,785			2,318
Incentive fees payable		853			—
Accounts payable and accrued expenses		2,814			2,430
Directors' fees payable		40			—
Total liabilities		440,413			321,062
Net assets	$	252,385		$	258,767

Commitments and contingencies (See Note 11)

ANALYSIS OF NET ASSETS
Common stock, $0.001 par value, 100,000 shares authorized, 20,445 and 20,445 shares issued and outstanding, respectively	$	20		$	20
Capital in excess of par value		288,911			288,911
Accumulated undistributed (overdistributed) earnings		(36,546	)		(30,164	)
Total net assets	$	252,385		$	258,767

Net asset value per share	$	12.34		$	12.66

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Investment income:
Non-controlled/non-affiliate company investments:
Interest income	$	14,308		$	10,817		$	40,881		$	34,305
Payment-in-kind interest income		156			121			369			384
Dividend income		13			288			39			813
Fee income		57			188			686			1,495
Total investment income from non-controlled/non-affiliate company investments		14,534			11,414			41,975			36,997
Non-controlled affiliate company investments:
Interest income		231			1,203			1,921			4,389
Payment-in-kind interest income		1,465			612			3,567			1,005
Fee income		—			—			—			83
Total investment income from non-controlled affiliate company investments		1,696			1,815			5,488			5,477
Controlled affiliate company investments:
Dividend income		1,100			550			2,745			1,075
Total investment income from controlled affiliate company investments		1,100			550			2,745			1,075
Total investment income		17,330			13,779			50,208			43,549

Operating expenses:
Interest and other debt financing expenses		5,549			2,895			15,010			8,437
Base management fees		2,785			2,196			8,029			6,561
Incentive fees		1,469			—			4,237			1,751
Professional fees		262			260			823			869
Administrative service fees		322			327			988			973
General and administrative expenses		281			338			793			739
Excise taxes		—			—			10			11
Directors' fees		40			37			115			111
Expenses before incentive fee waiver		10,708			6,053			30,005			19,452
Incentive fee waiver		(616	)		—			(1,182	)		—
Total expenses, net of incentive fee waiver		10,092			6,053			28,823			19,452
Net investment income		7,238			7,726			21,385			24,097

Net gain (loss):
Net realized gain (loss):
Non-controlled/non-affiliate company investments		11			(1,414	)		46			(1,414	)
Non-controlled affiliate company investments		—			(4,186	)		—			(4,186	)
Foreign currency forward contracts		16			—			10			—
Foreign currency and other transactions		(1	)		(11	)		(3	)		(8	)
Net realized gain (loss)		26			(5,611	)		53			(5,608	)

Net change in unrealized gain (loss):
Non-controlled/non-affiliate company investments		(1,568	)		(5,981	)		(2,029	)		(6,661	)
Non-controlled affiliate company investments		(2,355	)		2,396			(5,163	)		(8,684	)
Controlled affiliate company investments		(350	)		275			85			978
Foreign currency forward contracts		60			(58	)		67			(58	)
Foreign currency and other transactions		602			260			688			613
Net change in unrealized gain (loss)		(3,611	)		(3,108	)		(6,352	)		(13,812	)

Net gain (loss)		(3,585	)		(8,719	)		(6,299	)		(19,420	)

Net increase (decrease) in net assets resulting from operations	$	3,653		$	(993	)	$	15,086		$	4,677

Per common share data:
Net investment income per share - basic and diluted	$	0.35		$	0.38		$	1.05		$	1.19
Net increase (decrease) in net assets resulting from operations per share - basic and diluted	$	0.17		$	(0.05	)	$	0.73		$	0.23
Weighted average common shares outstanding - basic and diluted		20,445			20,417			20,445			20,301

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(in thousands)

	Common Stock				Capital in		Accumulated undistributed
	Number of shares		Par value		excess of par value		(overdistributed) earnings			Total net assets
Balances at June 30, 2018		20,279	$	20	$	286,651	$	(15,963	)	$	270,708
Net investment income		—		—		—		7,726			7,726
Net realized gain (loss)		—		—		—		(5,611	)		(5,611	)
Net change in unrealized gain (loss)		—		—		—		(3,108	)		(3,108	)
Issuance of common stock, net of offering and underwriting costs		166		—		2,193		—			2,193
Distributions to stockholders		—		—		—		(7,156	)		(7,156	)
Balances at September 30, 2018		20,445	$	20	$	288,844	$	(24,112	)	$	264,752

Balances at June 30, 2019		20,445	$	20	$	288,911	$	(33,043	)	$	255,888
Net investment income		—		—		—		7,238			7,238
Net realized gain (loss)		—		—		—		26			26
Net change in unrealized gain (loss)		—		—		—		(3,611	)		(3,611	)
Issuance of common stock, net of offering and underwriting costs		—		—		—		—			—
Distributions to stockholders		—		—		—		(7,156	)		(7,156	)
Balances at September 30, 2019		20,445	$	20	$	288,911	$	(36,546	)	$	252,385

	Common Stock				Capital in		Accumulated undistributed
	Number of shares		Par value		excess of par value		(overdistributed) earnings			Total net assets
Balances at December 31, 2017		20,240	$	20	$	286,141	$	(7,462	)	$	278,699
Net investment income		—		—		—		24,097			24,097
Net realized gain (loss)		—		—		—		(5,608	)		(5,608	)
Net change in unrealized gain (loss)		—		—		—		(13,812	)		(13,812	)
Issuance of common stock, net of offering and underwriting costs		183		—		2,402		—			2,402
Distributions to stockholders		22		—		301		(21,327	)		(21,026	)
Balances at September 30, 2018		20,445	$	20	$	288,844	$	(24,112	)	$	264,752

Balances at December 31, 2018		20,445	$	20	$	288,911	$	(30,164	)	$	258,767
Net investment income		—		—		—		21,385			21,385
Net realized gain (loss)		—		—		—		53			53
Net change in unrealized gain (loss)		—		—		—		(6,352	)		(6,352	)
Issuance of common stock, net of offering and underwriting costs		—		—		—		—			—
Distributions to stockholders		—		—		—		(21,468	)		(21,468	)
Balances at September 30, 2019		20,445	$	20	$	288,911	$	(36,546	)	$	252,385

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

	Nine months ended September 30,
	2019			2018

Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	15,086		$	4,677
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		(46	)		5,600
Net realized (gain) loss on foreign currency forward contracts		(10	)		—
Net realized (gain) loss on foreign currency and other transactions		3			8
Net change in unrealized (gain) loss on investments		7,107			14,367
Net change in unrealized (gain) loss on foreign currency forward contracts		(67	)		58
Net change in unrealized (gain) loss on foreign currency and other transactions		(688	)		(613	)
Payment-in-kind interest income		(3,936	)		(1,389	)
Payment-in-kind dividend income		—			(792	)
Net accretion of discounts and amortization of premiums		(1,180	)		(1,837	)
Proceeds from principal payments, sales of investments and settlement of forward contracts		82,599			120,840
Purchases of investments		(188,363	)		(124,944	)
Amortization of deferred financing costs		1,374			951
Changes in operating assets and liabilities:
Interest receivable		(2,940	)		(1,047	)
Other assets		116			268
Interest payable		(763	)		(769	)
Management fees payable		467			132
Incentive fees payable		853			(1,157	)
Accounts payable and accrued expenses		384			415
Directors' fees payable		40			37
Net cash provided by (used in) operating activities		(89,964	)		14,805

Cash flows from financing activities:
Borrowings on revolving credit facility		309,250			86,107
Repayments of revolving credit facility		(227,950	)		(151,050	)
Proceeds from 2023 Notes		40,000			69,000
SBA debentures borrowings		—			5,480
Payments of deferred financing costs		(3,616	)		(3,002	)
Proceeds from shares sold, net of offering and underwriting costs		—			2,402
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $301, respectively		(21,468	)		(21,026	)
Net cash provided by (used in) financing activities		96,216			(12,089	)

Net increase (decrease) in Cash and Restricted Cash		6,252			2,716
Effect of foreign currency exchange rates		(3	)		(8	)
Cash and Restricted Cash, beginning of period		17,726			7,199
Cash and Restricted Cash, end of period	$	23,975		$	9,907

Supplemental disclosure of cash flow information:
Cash interest paid during the period	$	14,343		$	8,197
Cash paid (refund received) for excise taxes during the period	$	(13	)	$	91

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

	September 30, 2019		December 31, 2018
Cash	$	3,199	$	3,744
Restricted cash		20,776		13,982
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	$	23,975	$	17,726

	September 30, 2018		December 31, 2017
Cash	$	3,969	$	4,332
Restricted cash		5,938		2,867
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	$	9,907	$	7,199

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

September 30, 2019

(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+ 8.25%	10.29	%	4/24/2018	4/24/2023		2,850	$	2,805	$	2,623		1.0	%
Magneto & Diesel Acquisition, Inc.	L+ 5.50%	7.54	%	12/18/2018	12/18/2023		4,963		4,886		4,964		2.0	%
Magneto & Diesel Acquisition, Inc. (Revolver) ^(f)	L+ 5.50%	7.54	%	12/18/2018	12/18/2023		500		125		125		0.1	%
							8,313		7,816		7,712		3.1	%
Banking, Finance, Insurance & Real Estate
777 SPV I LLC (Delayed Draw) ^{(g) (h)}	L+ 8.50%	10.54	%	4/15/2019	4/14/2023		5,404		5,343		5,439		2.2	%
Echelon Funding I, LLC (Delayed Draw) ^{(f) (g) (h)}	L+ 7.50%	9.60	%	2/24/2017	2/24/2022		18,900		14,731		14,731		5.8	%
HFZ Capital Group, LLC ^(h)	L+ 10.17%	12.32% Cash/ 0.17% PIK	⁽ⁱ⁾	10/20/2017	11/12/2019		18,000		17,988		18,002		7.1	%
HFZ Member RB Portfolio LLC (Delayed Draw) ^{(f) (g) (h)}	L+ 12.00%	14.32	%	10/30/2018	10/29/2021		9,000		5,164		5,086		2.0	%
Liftforward SPV II, LLC ^{(f) (g) (h)}	L+ 10.75%	12.79	%	11/10/2016	11/10/2020		10,000		3,985		4,006		1.6	%
PKS Holdings, LLC ^(h)	L+ 12.75%	14.85	%	11/30/2017	11/30/2022		1,688		1,549		1,694		0.7	%
PKS Holdings, LLC (Revolver) ^{(f) (h)}	L+ 10.75%	12.85	%	11/30/2017	11/30/2022		80		—		—		0.0	%
TCP-NG (U.S.), L.L.C. ^(h)	L+ 7.25%	9.35	%	8/23/2019	8/22/2024		3,000		2,952		2,998		1.2	%
TCP-NG (U.S.), L.L.C. (Revolver) ^{(f) (h)}	L+ 7.25%	9.35	%	8/23/2019	8/22/2024		180		—		—		0.0	%
							66,252		51,712		51,956		20.6	%
Beverage, Food & Tobacco
California Pizza Kitchen, Inc.	L+ 6.00%	8.53	%	8/19/2016	8/23/2022		6,790		6,750		6,090		2.4	%
Toojay's Management LLC	L+ 5.50%	7.54	%	10/26/2018	10/26/2022		3,474		3,417		3,470		1.4	%
Toojay's Management LLC	L+ 5.50%	7.54	%	10/26/2018	10/26/2022		476		476		476		0.2	%
Toojay's Management LLC (Revolver)	L+ 5.50%	7.54	%	10/26/2018	10/26/2022		318		318		318		0.1	%
							11,058		10,961		10,354		4.1	%
Chemicals, Plastics & Rubber
Midwest Composite Technologies, LLC	L+ 6.50%	8.54	%	8/31/2018	8/31/2023		891		876		909		0.4	%
Midwest Composite Technologies, LLC (Delayed Draw) ^{(f) (g)}	L+ 6.50%	8.54	%	8/31/2018	8/31/2023		510		60		61		0.0	%
Midwest Composite Technologies, LLC (Revolver) ^(f)	L+ 6.50%	8.54	%	8/31/2018	8/31/2023		90		—		—		0.0	%
Valudor Products, LLC	L+ 7.50%	9.54	%	6/18/2018	6/19/2023		1,574		1,548		1,552		0.6	%
Valudor Products, LLC ^(j)	L+ 7.50%	9.54	%	6/18/2018	6/19/2023		211		206		207		0.1	%
Valudor Products, LLC (Revolver) ^(f)	L+ 9.50%	11.54	%	6/18/2018	6/19/2023		818		341		336		0.1	%
							4,094		3,031		3,065		1.2	%
Construction & Building
Cali Bamboo, LLC	L+ 7.00%	9.04	%	7/10/2015	7/10/2020		7,875		7,829		7,750		3.0	%
Cali Bamboo, LLC (Revolver) ^(f)	L+ 7.00%	9.04	%	7/10/2015	7/10/2020		2,165		758		746		0.3	%
Construction Supply Acquisition, LLC	L+ 6.00%	8.12	%	11/27/2018	6/30/2023		4,368		4,349		4,357		1.7	%
Dude Solutions Holdings, Inc.	L+ 7.00%	9.04	%	6/14/2019	6/13/2025		10,000		9,781		9,995		4.0	%
Dude Solutions Holdings, Inc. (Revolver) ^(f)	L+ 7.00%	9.04	%	6/14/2019	6/13/2025		1,304		—		—		0.0	%
							25,712		22,717		22,848		9.0	%
Consumer Goods: Durable
Nova Wildcat Amerock, LLC	L+ 5.75%	7.79	%	10/12/2018	10/12/2023		9,392		9,232		9,393		3.7	%
Nova Wildcat Amerock, LLC (Revolver) ^(f)	L+ 5.75%	7.79	%	10/12/2018	10/12/2023		931		—		—		0.0	%
Parterre Flooring & Surface Systems, LLC ^(k)	L+ 9.00%	11.04	%	8/22/2017	8/22/2022		8,550		8,441		8,135		3.2	%
Parterre Flooring & Surface Systems, LLC (Revolver)	L+ 9.00%	11.04	%	8/22/2017	8/22/2022		696		696		659		0.3	%
							19,569		18,369		18,187		7.2	%
Consumer Goods: Non-Durable
Quirch Foods Holdings, LLC	L+ 6.00%	8.05	%	2/14/2019	12/19/2025		1,985		1,966		1,985		0.8	%
							1,985		1,966		1,985		0.8	%
Energy: Oil & Gas
BJ Services, LLC	L+ 7.00%	9.10	%	1/28/2019	1/3/2023		4,387		4,350		4,384		1.7	%
Landpoint, LLC	L+ 10.00%	12.04	%	12/17/2013	12/20/2019		1,821		1,820		1,821		0.7	%
Landpoint, LLC (Revolver) ^(f)	L+ 10.00%	12.04	%	12/17/2013	12/20/2019		313		—		—		0.0	%
							6,521		6,170		6,205		2.4	%
Environmental Industries
StormTrap, LLC	L+ 5.50%	7.54	%	12/10/2018	12/8/2023		7,940		7,818		7,880		3.1	%
StormTrap, LLC (Revolver) ^(f)	L+ 5.50%	7.54	%	12/10/2018	12/8/2023		432		—		—		0.0	%
Synergy Environmental Corporation ^(k)	L+ 7.00%	9.04	%	4/29/2016	9/30/2021		2,893		2,864		2,880		1.1	%
Synergy Environmental Corporation ^(k)	L+ 7.00%	9.04	%	4/29/2016	9/30/2021		484		479		481		0.2	%
Synergy Environmental Corporation (Delayed Draw) ^{(f) (g)}	L+ 7.00%	9.04	%	4/29/2016	9/30/2021		1,310		827		823		0.3	%
Synergy Environmental Corporation (Revolver) ^(f)	L+ 7.00%	9.04	%	4/29/2016	9/30/2021		671		471		469		0.2	%
							13,730		12,459		12,533		4.9	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

September 30, 2019

(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)
Healthcare & Pharmaceuticals
American Optics Holdco, Inc. ^{(h) (l)}	L+ 7.00%	9.04	%	9/13/2017	9/13/2022			4,238	$	4,182	$	4,212		1.7	%
American Optics Holdco, Inc. ^{(h) (l)}	L+ 7.00%	9.04	%	9/13/2017	9/13/2022			1,648		1,623		1,638		0.6	%
American Optics Holdco, Inc. (Revolver) ^{(f) (h) (l)}	L+ 7.00%	9.04	%	9/13/2017	9/13/2022			440		—		—		0.0	%
American Optics Holdco, Inc. (Revolver) ^{(f) (h) (l)}	L+ 7.00%	9.04	%	9/13/2017	9/13/2022			440		—		—		0.0	%
Apotheco, LLC	L+ 5.25%	7.29	%	4/8/2019	4/8/2024			3,491		3,426		3,491		1.4	%
Apotheco, LLC (Delayed Draw) ^{(f) (g)}	L+ 5.25%	7.29	%	4/8/2019	4/8/2024			1,647		—		—		0.0	%
Apotheco, LLC (Revolver) ^(f)	L+ 5.25%	7.29	%	4/8/2019	4/8/2024			909		159		159		0.1	%
Familia Dental Group Holdings, LLC ^(k)	L+ 8.00%	10.04	%	4/8/2016	4/8/2021			5,019		4,988		4,648		1.8	%
Familia Dental Group Holdings, LLC	L+ 8.00%	10.04	%	4/8/2016	4/8/2021			483		483		447		0.2	%
Familia Dental Group Holdings, LLC (Revolver) ^(f)	L+ 8.00%	10.04	%	4/8/2016	4/8/2021			573		372		345		0.1	%
Rockdale Blackhawk, LLC (DIP Facility)	n/a	15.10	%	8/30/2018	n/a	^(m)		198		198		198		0.1	%
Rockdale Blackhawk, LLC (DIP Facility)	n/a	15.10	%	8/6/2018	n/a	^(m)		8,877		8,877		8,877		3.5	%
Rockdale Blackhawk, LLC	L+ 13.00%	15.04	%⁽ⁿ⁾	3/31/2015	3/31/2020			10,923		10,465		8,842		3.5	%
								38,886		34,773		32,857		13.0	%
High Tech Industries
Host Analytics, Inc.	L+ 6.00%	8.10	%	12/28/2018	12/28/2023			9,500		9,332		9,481		3.8	%
Host Analytics, Inc. (Revolver) ^(f)	L+ 6.00%	8.10	%	12/28/2018	12/28/2023			442		—		—		0.0	%
Mindbody, Inc.	L+ 7.00%	9.06	%	2/15/2019	2/14/2025			6,333		6,220		6,330		2.5	%
Mindbody, Inc. (Revolver) ^(f)	L+ 7.00%	9.06	%	2/15/2019	2/14/2025			667		—		—		0.0	%
Newforma, Inc. ^(k)	L+ 5.50%	7.60	%	6/30/2017	6/30/2022			13,345		13,224		13,345		5.3	%
Newforma, Inc. (Revolver) ^(f)	L+ 5.50%	7.60	%	6/30/2017	6/30/2022			1,250		—		—		0.0	%
Prototek Sheetmetal Fabrication, LLC	L+ 7.50%	9.54	%	12/11/2017	12/12/2022			3,368		3,321		3,349		1.3	%
Prototek Sheetmetal Fabrication, LLC	L+ 7.50%	9.54	%	6/27/2019	12/12/2022			1,600		1,570		1,591		0.6	%
Prototek Sheetmetal Fabrication, LLC	L+ 7.50%	9.54	%	12/11/2017	12/12/2022			2,301		2,301		2,288		0.9	%
Prototek Sheetmetal Fabrication, LLC (Revolver) ^(f)	L+ 7.50%	9.54	%	12/11/2017	12/12/2022			233		—		—		0.0	%
Recorded Future, Inc.	L+ 6.75%	8.79	%	7/3/2019	7/3/2025			7,333		7,190		7,332		2.9	%
Recorded Future, Inc. (Delayed Draw) ^(f) ^(g)	L+ 6.75%	8.79	%	7/3/2019	7/3/2025			587		—		—		0.0	%
Recorded Future, Inc. (Revolver) ^(f)	L+ 6.75%	8.79	%	7/3/2019	7/3/2025			880		—		—		0.0	%
RPL Bidco Limited ^{(h) (l) (o)}	L+ 7.50%	8.26	%	11/9/2017	11/9/2023			13,207		14,073		13,208		5.2	%
RPL Bidco Limited (Delayed Draw) ^{(f) (g) (h) (l) (o)}	L+ 7.50%	8.26	%	5/22/2018	11/9/2023			1,966		—		—		0.0	%
RPL Bidco Limited (Revolver) ^{(f) (h) (l) (o)}	L+ 7.50%	8.26	%	11/9/2017	11/9/2023			492		—		—		0.0	%
WillowTree, LLC	L+ 5.50%	7.54	%	10/9/2018	10/9/2023			7,920		7,802		7,964		3.2	%
WillowTree, LLC (Revolver) ^(f)	L+ 5.50%	7.54	%	10/9/2018	10/9/2023			1,000		962		962		0.4	%
								72,424		65,995		65,850		26.1	%
Hotels, Gaming & Leisure
TRG, LLC	L+ 12.96%	9.60% Cash/ 5.46% PIK	^(p)	12/23/2014	2/14/2020			17,110		17,094		18,308		7.2	%
TRG, LLC (CapEx)	L+ 9.50%	9.60% Cash/ 2.00% PIK		9/1/2015	2/14/2020			1,363		1,362		1,458		0.6	%
TRG, LLC (Revolver) ^(f)	L+ 9.50%	11.60	%	12/23/2014	2/14/2020			262		131		140		0.1	%
								18,735		18,587		19,906		7.9	%
Media: Advertising, Printing & Publishing
AdTheorent, Inc.	L+ 8.50%	10.60	%	12/22/2016	12/22/2021			3,460		3,425		3,465		1.4	%
Destination Media, Inc. ^(k)	L+ 5.50%	7.54	%	4/7/2017	4/7/2022			4,825		4,783		4,867		1.9	%
Destination Media, Inc. (Revolver) ^(f)	L+ 5.50%	7.54	%	4/7/2017	4/7/2022			542		—		—		0.0	%
MC Sign Lessor Corp.	L+ 7.00%	9.11	%	12/22/2017	8/30/2024			15,720		15,636		15,779		6.3	%
MC Sign Lessor Corp. (Revolver) ^(f)	L+ 7.00%	9.11	%	12/22/2017	8/30/2024			3,490		1,047		1,047		0.4	%
								28,037		24,891		25,158		10.0	%
Media: Broadcasting & Subscription
Vice Group Holding Inc.	L+ 12.00%	6.62% Cash/ 8.00% PIK		5/2/2019	11/2/2022			1,225		1,213		1,219		0.5	%
Vice Group Holding Inc. (Delayed Draw) ^{(f) (g)}	L+ 9.00%	11.62	%	5/2/2019	11/2/2022			400		—		—		0.0	%
Vice Group Holding Inc. (Delayed Draw) ^{(f) (g)}	L+ 9.00%	11.62	%	5/2/2019	11/2/2022			400		—		—		0.0	%
								2,025		1,213		1,219		0.5	%
Media: Diversified & Production
Attom Intermediate Holdco, LLC	L+ 5.75%	7.79	%	1/4/2019	1/4/2024			1,985		1,950		1,984		0.8	%
Attom Intermediate Holdco, LLC (Revolver) ^(f)	L+ 5.75%	7.79	%	1/4/2019	1/4/2024			320		—		—		0.0	%
Crownpeak Technology, Inc.	L+ 6.25%	8.35	%	2/28/2019	2/28/2024			4,000		3,928		4,029		1.6	%
Crownpeak Technology, Inc. (Delayed Draw) ^{(f) (g)}	L+ 6.25%	8.37	%	2/28/2019	2/28/2024			333		60		60		0.0	%
Crownpeak Technology, Inc. (Revolver) ^(f)	L+ 6.25%	8.37	%	2/28/2019	2/28/2024			167		—		—		0.0	%
								6,805		5,938		6,073		2.4	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

September 30, 2019

(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)
Retail
Bluestem Brands, Inc.	L+ 7.50%	9.54	%	6/26/2015	11/6/2020			2,315	$	2,309	$	1,756		0.7	%
Forman Mills, Inc. ^(k)	L+ 9.50%	9.54% Cash/ 2.00% PIK		10/4/2016	10/4/2021			8,202		8,125		7,628		3.0	%
LuLu's Fashion Lounge, LLC	L+ 9.00%	11.04	%	8/21/2017	8/29/2022			4,250		4,168		4,182		1.7	%
The Worth Collection, Ltd. ^(k)	L+ 8.50%	6.29% Cash/ 4.25% PIK	⁽ⁿ⁾	9/29/2016	9/29/2021			10,709		10,364		6,816		2.7	%
Yandy Holding, LLC	L+ 11.00%	13.04	%	9/30/2014	n/a	^(m)		3,643		3,643		3,639		1.4	%
Yandy Holding, LLC (Revolver) ^(f)	L+ 11.00%	13.04	%	9/30/2014	n/a	^(m)		907		—		—		0.0	%
								30,026		28,609		24,021		9.5	%
Services: Business
APCO Worldwide, Inc.	L+ 8.00%	10.04	%	6/30/2017	6/30/2022			4,687		4,629		4,641		1.8	%
Arcserve (USA) LLC	L+ 6.00%	8.12	%	5/1/2019	5/1/2024			4,785		4,694		4,792		1.9	%
Atlas Sign Industries of FLA, LLC ^(k)	L+ 11.50%	12.54% Cash/ 1.00% PIK		5/14/2018	5/15/2023			3,518		3,323		3,300		1.3	%
Burroughs, Inc. ^(k)	L+ 8.00%	9.60% Cash/ 0.50% PIK		12/22/2017	12/22/2022			5,790		5,728		5,679		2.3	%
Burroughs, Inc. (Revolver) ^(f)	L+ 8.00%	9.60% Cash/ 0.50% PIK		12/22/2017	12/22/2022			1,215		1,165		1,165		0.5	%
Certify, Inc.	L+ 5.75%	7.79	%	2/28/2019	2/28/2024			9,000		8,876		8,921		3.5	%
Certify, Inc. (Delayed Draw) ^{(f) (g)}	L+ 5.75%	7.79	%	2/28/2019	2/28/2024			1,227		409		406		0.2	%
Certify, Inc. (Revolver) ^(f)	L+ 5.75%	7.79	%	2/28/2019	2/28/2024			409		—		—		0.0	%
First Call Resolution, LLC ^(k)	L+ 7.00%	9.10	%	9/22/2017	9/22/2022			3,721		3,679		3,758		1.5	%
First Call Resolution, LLC	L+ 7.00%	9.10	%	9/28/2018	9/22/2022			9,077		8,960		9,167		3.6	%
HaystackID LLC	L+ 6.50%	8.54	%	1/14/2019	1/12/2024			4,962		4,876		4,958		2.0	%
HaystackID LLC (Revolver) ^(f)	L+ 6.50%	8.54	%	1/14/2019	1/12/2024			403		81		80		0.0	%
HS4 Acquisitionco, Inc.	L+ 6.75%	8.85	%	7/9/2019	7/9/2025			10,050		9,853		10,040		4.0	%
HS4 Acquisitionco, Inc. (Revolver) ^(f)	L+ 6.75%	8.85	%	7/9/2019	7/9/2025			817		—		—		0.0	%
IT Global Holding LLC	L+ 9.00%	11.04	%	11/15/2018	11/10/2023			10,303		10,124		10,281		4.1	%
IT Global Holding LLC	L+ 9.00%	11.04	%	7/19/2019	11/10/2023			3,840		3,764		3,832		1.5	%
IT Global Holding LLC (Revolver)	L+ 9.00%	11.04	%	11/15/2018	11/10/2023			875		875		875		0.3	%
Kaseya Traverse, Inc.	L+ 6.50%	7.72% Cash/ 1.00% PIK		5/3/2019	5/2/2025			6,010		5,895		5,988		2.4	%
Kaseya Traverse, Inc. (Delayed Draw) ^{(f) (g)}	L+ 6.50%	7.69% Cash/ 1.00% PIK		5/3/2019	5/2/2025			723		94		94		0.0	%
Kaseya Traverse, Inc. (Revolver) ^(f)	L+ 6.50%	8.60	%	5/3/2019	5/2/2025			506		145		144		0.1	%
Madison Logic, Inc. ^(k)	L+ 8.00%	10.04	%	11/30/2016	11/30/2021			9,681		9,582		9,681		3.8	%
Madison Logic, Inc. (Revolver) ^(f)	L+ 8.00%	10.04	%	11/30/2016	11/30/2021			988		—		—		0.0	%
RedZone Robotics, Inc.	L+ 8.75%	8.79% Cash/ 2.00% PIK		6/1/2018	6/5/2023			646		636		588		0.2	%
RedZone Robotics, Inc. (Revolver) ^(f)	L+ 6.75%	8.79	%	6/1/2018	6/5/2023			158		—		—		0.0	%
Security Services Acquisition Sub Corp. ^(k)	L+ 6.00%	8.03	%	2/15/2019	2/15/2024			3,483		3,422		3,476		1.4	%
Security Services Acquisition Sub Corp. (Delayed Draw) ^{(f) (g) (k)}	L+ 6.00%	8.03	%	2/15/2019	2/15/2024			2,496		1,766		1,763		0.7	%
Security Services Acquisition Sub Corp. (Delayed Draw) ^{(f) (g) (k)}	L+ 6.00%	8.03	%	2/15/2019	2/15/2024			2,186		520		518		0.2	%
Security Services Acquisition Sub Corp. (Revolver) ^(f)	L+ 6.00%	8.03	%	2/15/2019	2/15/2024			1,042		104		104		0.1	%
TRP Construction Group, LLC ^(k)	L+ 7.50%	9.54	%	10/5/2017	10/5/2022			7,863		7,760		7,800		3.1	%
TRP Construction Group, LLC	L+ 7.50%	9.54	%	9/5/2018	10/5/2022			6,709		6,709		6,655		2.6	%
TRP Construction Group, LLC (Revolver) ^(f)	L+ 7.50%	9.54	%	10/5/2017	10/5/2022			2,133		—		—		0.0	%
VPS Holdings, LLC	L+ 7.00%	9.04	%	10/5/2018	10/4/2024			4,906		4,819		4,818		1.9	%
VPS Holdings, LLC	L+ 7.00%	9.04	%	10/5/2018	10/4/2024			4,000		4,000		3,928		1.6	%
VPS Holdings, LLC (Revolver) ^(f)	L+ 7.00%	9.04	%	10/5/2018	10/4/2024			1,000		100		100		0.1	%
								129,209		116,588		117,552		46.7	%
Services: Consumer
Mammoth Holdings, LLC	L+ 6.00%	8.32	%	10/16/2018	10/16/2023			1,985		1,952		1,981		0.8	%
Mammoth Holdings, LLC (Delayed Draw) ^{(f) (g)}	L+ 6.00%	8.32	%	10/16/2018	10/16/2023			4,167		3,260		3,253		1.3	%
Mammoth Holdings, LLC (Revolver) ^(f)	L+ 6.00%	8.32	%	10/16/2018	10/16/2023			500		—		—		0.0	%
PeopleConnect Intermediate, LLC	L+ 6.50%	8.61	%	7/1/2015	7/1/2020			4,072		4,056		4,072		1.6	%
PeopleConnect Intermediate, LLC	L+ 12.50%	14.61	%	7/1/2015	7/1/2020			4,536		4,516		4,529		1.8	%
PeopleConnect Intermediate, LLC (Revolver) ^(f)	L+ 9.50%	11.61	%	7/1/2015	7/1/2020			236		—		—		0.0	%
								15,496		13,784		13,835		5.5	%
Wholesale
Mid-West Wholesale Hardware Co. ^(q)	L+ 8.00%	10.04	%	2/9/2017	2/9/2022			19,423		19,184		19,423		7.7	%
Mid-West Wholesale Hardware Co. (Revolver) ^(f)	L+ 8.00%	10.04	%	2/9/2017	2/9/2022			5,491		5,034		5,034		2.0	%
Nearly Natural, Inc. ^(k)	L+ 7.00%	9.10	%	12/15/2017	12/15/2022			6,878		6,782		6,811		2.7	%
Nearly Natural, Inc. (Delayed Draw) ^{(f) (g) (k)}	L+ 7.00%	9.10	%	8/28/2019	12/15/2022			1,924		349		346		0.1	%
Nearly Natural, Inc. (Revolver) ^(f)	L+ 7.00%	9.10	%	12/15/2017	12/15/2022			1,522		457		457		0.2	%
								35,238		31,806		32,071		12.7	%
Total Non-Controlled/Non-Affiliate Senior Secured Loans								534,115		477,385		473,387		187.6	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

September 30, 2019

(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 ^(r)
Chemicals, Plastics & Rubber
MFG Chemical, LLC ^(k)	L+ 6.00%	8.04	%	6/23/2017	6/23/2022		10,477	$	10,381	$	10,178		4.0	%
MFG Chemical, LLC	L+ 6.00%	8.04	%	3/15/2018	6/23/2022		1,124		1,124		1,091		0.4	%
							11,601		11,505		11,269		4.4	%
Construction & Building
Inland Pipe Rehabilitation LLC	L+ 5.50%	7.60	%	12/27/2018	12/26/2024		12,406		12,178		12,515		5.0	%
							12,406		12,178		12,515		5.0	%
Consumer Goods: Durable
RugsUSA, LLC	L+ 6.50%	8.55	%	5/2/2018	4/28/2023		4,000		3,971		3,992		1.6	%
							4,000		3,971		3,992		1.6	%
Healthcare & Pharmaceuticals
Priority Ambulance, LLC ^(s)	L+ 6.50%	8.60	%	7/18/2019	4/12/2022		10,015		10,015		10,015		4.0	%
Priority Ambulance, LLC ^(t)	L+ 6.50%	8.60	%	4/12/2017	4/12/2022		1,253		1,232		1,255		0.5	%
Priority Ambulance, LLC (Delayed Draw) ^{(f) (g)}	L+ 6.50%	8.60	%	7/18/2019	4/12/2022		246		—		—		0.0	%
Priority Ambulance, LLC (Delayed Draw) ^{(f) (g)}	L+ 6.50%	8.60	%	12/13/2018	4/12/2022		2,480		691		692		0.2	%
							13,994		11,938		11,962		4.7	%
High Tech Industries
Energy Services Group, LLC	L+ 8.42%	10.46	%	5/4/2017	5/4/2022		4,226		4,192		4,210		1.7	%
Energy Services Group, LLC ^{(h) (o)}	L+ 8.42%	9.42	%	5/4/2017	5/4/2022		4,677		5,001		4,665		1.8	%
Energy Services Group, LLC	L+ 8.42%	10.46	%	5/4/2017	5/4/2022		1,203		1,188		1,198		0.5	%
Mnine Holdings, Inc.	P+ 8.75%	13.50	%	11/2/2018	11/2/2023		7,940		7,803		7,747		3.1	%
							18,046		18,184		17,820		7.1	%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans							60,047		57,776		57,558		22.8	%

Junior Secured Loans
Beverage, Food & Tobacco
CSM Bakery Supplies, LLC	L+ 7.75%	10.04	%	5/23/2013	7/5/2021		5,792		5,792		5,387		2.1	%
							5,792		5,792		5,387		2.1	%
High Tech Industries
Micro Holdings Corp.	L+ 7.50%	9.54	%	8/16/2017	8/18/2025		3,000		2,974		3,022		1.2	%
							3,000		2,974		3,022		1.2	%
Media: Diversified & Production
The Octave Music Group, Inc.	L+ 8.25%	10.32	%	5/29/2015	5/27/2022		4,355		4,323		4,355		1.7	%
							4,355		4,323		4,355		1.7	%
Services: Consumer
Education Corporation of America	L+ 11.00%	7.60% Cash/ 5.50% PIK	⁽ⁿ⁾	9/3/2015	3/31/2020		833		831		757		0.3	%
							833		831		757		0.3	%
Total Non-Controlled/Non-Affiliate Junior Secured Loans							13,980		13,920		13,521		5.3	%

Equity Securities ^{(u) (v)}
Banking, Finance, Insurance & Real Estate
PKS Holdings, LLC (warrant to purchase up to 0.8% of the equity) ^(h)	—	—	^(w)	11/30/2017	11/30/2027		—		116		7		0.0	%
									116		7		0.0	%
Chemicals, Plastics & Rubber
Valudor Products, LLC (501,014 class A-1 units)	n/a	10.00% PIK		6/18/2018	—		—		501		276		0.1	%
									501		276		0.1	%
High Tech Industries
Answers Finance, LLC (76,539 shares of common stock)	—	—	^(w)	4/14/2017	—		—		2,344		50		0.0	%
Host Analytics, Inc. (441,860 class A units)	—	—	^(w)	12/28/2018	—		—		442		510		0.2	%
Recorded Future, Inc. (80,080 class A units) ^(x)	—	—	^(w)	7/3/2019	—		—		80		80		0.0	%