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

 

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
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

 

 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)

 

   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.

 

 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, 
   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.

 4 

 

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.

 

 5 

 

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.  

 6 

 

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%

 

 7 

 

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%

 

 8 

 

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%

 

 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)
 
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%