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 June 30, 2020

 

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 August 4, 2020, the registrant had 21,303,540 shares of common stock, $0.001 par value, outstanding.

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART I. FINANCIAL INFORMATION 3
     
Item 1. Consolidated Financial Statements 3
     
  Consolidated Statements of Assets and Liabilities as of June 30, 2020 (unaudited) and December 31, 2019 3
     
  Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2020 and 2019 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 (unaudited) 6
     
  Consolidated Schedules of Investments as of June 30, 2020 (unaudited) and December 31, 2019 7
     
  Notes to Consolidated Financial Statements (unaudited) 25
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 56
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 81
     
Item 4. Controls and Procedures 83
     
PART II. OTHER INFORMATION 84
     
Item 1. Legal Proceedings 84
     
Item 1A. Risk Factors 84
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 88
     
Item 3. Defaults Upon Senior Securities 88
     
Item 4. Mine Safety Disclosures 88
     
Item 5. Other Information 88
     
Item 6. Exhibits 88
     
Signatures   89

 

 2 

 

 

Part I. Financial Information

Item 1. Consolidated Financial Statements

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

 

   June 30, 2020   December 31, 2019 
   (unaudited)     
ASSETS          
Investments, at fair value:          
Non-controlled/non-affiliate company investments  $458,276   $513,959 
Non-controlled affiliate company investments   69,465    59,860 
Controlled affiliate company investments   35,555    42,412 
Total investments, at fair value (amortized cost of: $627,842 and $634,736, respectively)   563,296    616,231 
Cash   7,443    2,234 
Restricted cash   13,393    27,409 
Unrealized gain on foreign currency forward contracts   15     
Interest receivable   4,859    8,689 
Other assets   1,091    495 
Total assets   590,097    655,058 
           
LIABILITIES          
Debt:          
Revolving credit facility   146,016    180,294 
2023 Notes   109,000    109,000 
SBA debentures payable   115,000    115,000 
    Total debt   370,016    404,294 
Less:  Unamortized deferred financing costs   (7,988)   (8,053)
    Total debt, less unamortized deferred financing costs   362,028    396,241 
Interest payable   2,683    2,763 
Unrealized loss on foreign currency forward contracts       59 
Management fees payable   2,434    2,751 
Incentive fees payable       1,374 
Accounts payable and accrued expenses   2,356    2,513 
Total liabilities   369,501    405,701 
Net assets  $220,596   $249,357 
           
Commitments and contingencies (See Note 11)          
           
ANALYSIS OF NET ASSETS          
Common stock, $0.001 par value, 100,000 shares authorized, 21,270 and 20,445 shares issued and outstanding, respectively  $21   $20 
Capital in excess of par value   295,116    288,850 
Accumulated undistributed (overdistributed) earnings   (74,541)   (39,513)
Total net assets  $220,596   $249,357 
           
Net asset value per share  $10.37   $12.20 

 

See Notes to Consolidated Financial Statements.

 3 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

   Three months ended June 30,   Six months ended June 30, 
   2020   2019   2020   2019 
Investment income:                    
Non-controlled/non-affiliate company investments:                    
Interest income  $14,461   $13,743   $26,808   $26,573 
Payment-in-kind interest income   855    115    926    213 
Dividend income   (92)   13    (76)   26 
Fee income   2,823    60    3,021    629 
Total investment income from non-controlled/non-affiliate company investments   18,047    13,931    30,679    27,441 
Non-controlled affiliate company investments:                    
Interest income   45    767    235    1,690 
Payment-in-kind interest income   1,609    1,146    2,614    2,102 
Dividend income   41        66    — 
Total investment income from non-controlled affiliate company investments   1,695    1,913    2,915    3,792 
Controlled affiliate company investments:                    
Dividend income   900    875    2,050    1,645 
Total investment income from controlled affiliate company investments   900    875    2,050    1,645 
Total investment income   20,642    16,719    35,644    32,878 
                     
Operating expenses:                    
Interest and other debt financing expenses   4,555    5,107    9,385    9,461 
Base management fees   2,434    2,723    4,985    5,244 
Incentive fees       1,168        2,768 
Professional fees   322    272    537    561 
Administrative service fees   314    319    652    666 
General and administrative expenses   214    285    445    512 
Directors' fees   40    40    75    75 
Expenses before incentive fee waiver   7,879    9,914    16,079    19,287 
Incentive fee waiver       (285)       (566)
Total expenses, net of incentive fee waiver   7,879    9,629    16,079    18,721 
Net investment income before income taxes   12,763    7,090    19,565    14,157 
Income taxes, including excise taxes   127    17    147    10 
Net investment income   12,636    7,073    19,418    14,147 
                     
Net gain (loss):                    
Net realized gain (loss):                    
Non-controlled/non-affiliate company investments   2,461    35    2,555    35 
Foreign currency forward contracts   22    2    18    (6)
Foreign currency and other transactions   (1)   (1)   (16)   (2)
Net realized gain (loss)   2,482    36    2,557    27 
                     
Net change in unrealized gain (loss):                    
Non-controlled/non-affiliate company investments   (5,220)   (2,749)   (25,575)   (461)
Non-controlled affiliate company investments   98    (1,054)   (13,609)   (2,808)
Controlled affiliate company investments   4,230    112    (6,857)   435 
Foreign currency forward contracts   (24)   72    74    7 
Foreign currency and other transactions   32    502    1,376    86 
Net change in unrealized gain (loss)   (884)   (3,117)   (44,591)   (2,741)
                     
Net gain (loss)   1,598    (3,081)   (42,034)   (2,714)
                     
Net increase (decrease) in net assets resulting from operations  $14,234   $3,992   $(22,616)  $11,433 
                     
Per common share data:                    
Net investment income per share - basic and diluted  $0.61   $0.35   $0.95   $0.69 
Net increase (decrease) in net assets resulting from operations per share - basic and diluted  $0.69   $0.20   $(1.10)  $0.56 
Weighted average common shares outstanding - basic and diluted   20,637    20,445    20,541    20,445 

 

See Notes to Consolidated Financial Statements.

 4 

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(in thousands)

 

   Common Stock                
   Number of
shares   
   Par
value
   Capital in
excess
of par value
   Accumulated
undistributed
(overdistributed)
earnings
   Total
net assets
 
Balances at March 31, 2019   20,445   $20   $288,911   $(29,879)  $259,052 
Net investment income               7,073    7,073 
Net realized gain (loss)               36    36 
Net change in unrealized gain (loss)               (3,117)   (3,117)
Issuance of common stock, net of offering and underwriting costs                    
Distributions to stockholders               (7,156)   (7,156)
Balances at June 30, 2019   20,445   $20   $288,911   $(33,043)  $255,888 
                          
Balances at March 31, 2020   20,445   $20   $288,850   $(83,518)  $205,352 
Net investment income               12,636    12,636 
Net realized gain (loss)               2,482    2,482 
Net change in unrealized gain (loss)               (884)   (884)
Issuance of common stock, net of offering and underwriting costs   825    1    6,266        6,267 
Distributions to stockholders               (5,257)   (5,257)
Balances at June 30, 2020   21,270   $21   $295,116   $(74,541)  $220,596 

 

   Common Stock                
   Number of
shares   
   Par
value
   Capital in
excess
of par value
   Accumulated
undistributed
(overdistributed)
earnings
   Total
net assets
 
Balances at December 31, 2018   20,445   $20   $288,911   $(30,164)  $258,767 
Net investment income               14,147    14,147 
Net realized gain (loss)               27    27 
Net change in unrealized gain (loss)               (2,741)   (2,741)
Issuance of common stock, net of offering and underwriting costs                    
Distributions to stockholders               (14,312)   (14,312)
Balances at June 30, 2019   20,445   $20   $288,911   $(33,043)  $255,888 
                          
Balances at December 31, 2019   20,445   $20   $288,850   $(39,513)  $249,357 
Net investment income               19,418    19,418 
Net realized gain (loss)               2,557    2,557 
Net change in unrealized gain (loss)               (44,591)   (44,591)
Issuance of common stock, net of offering and underwriting costs   825    1    6,266        6,267 
Distributions to stockholders               (12,412)   (12,412)
Balances at June 30, 2020   21,270   $21   $295,116   $(74,541)  $220,596 

 

See Notes to Consolidated Financial Statements.  

 

 5 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

   Six months ended June 30, 
   2020    2019  
Cash flows from operating activities:          
Net increase (decrease) in net assets resulting from operations  $(22,616)  $11,433 
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   (2,555)   (35)
Net realized (gain) loss on foreign currency forward contracts   (18)   6 
Net realized (gain) loss on foreign currency and other transactions   16    2 
Net change in unrealized (gain) loss on investments   46,041    2,834 
Net change in unrealized (gain) loss on foreign currency forward contracts   (74)   (7)
Net change in unrealized (gain) loss on foreign currency and other transactions   (1,376)   (86)
Payment-in-kind interest income   (3,540)   (2,315)
Net accretion of discounts and amortization of premiums   (680)   (819)
Purchases of investments   (81,410)   (130,651)
Proceeds from principal payments, sales of investments and settlement of forward contracts   95,097    53,797 
Amortization of deferred financing costs   1,004    901 
Changes in operating assets and liabilities:          
Interest receivable   3,830    (2,556)
Other assets   (596)   155 
Interest payable   (80)   131 
Management fees payable   (317)   405 
Incentive fees payable   (1,374)   883 
Accounts payable and accrued expenses   (157)   115 
Net cash provided by (used in) operating activities   31,195    (65,807)
           
Cash flows from financing activities:          
Borrowings on revolving credit facility   55,200    264,450 
Repayments of revolving credit facility   (88,100)   (211,750)
Proceeds from 2023 Notes       40,000 
Payments of deferred financing costs   (939)   (3,436)
Proceeds from shares sold, net of offering and underwriting costs   6,267     
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively   (12,412)   (14,312)
Net cash provided by (used in) financing activities   (39,984)   74,952 
           
Net increase (decrease) in Cash and Restricted Cash   (8,789)   9,145 
Effect of foreign currency exchange rates   (18)   (2)
Cash and Restricted Cash, beginning of period   29,643    17,726 
Cash and Restricted Cash, end of period  $20,836   $26,869 
           
Supplemental disclosure of cash flow information:          
Cash interest paid during the period  $8,428   $8,391 
Cash paid (refund received) for excise taxes during the period  $85   $(13)

 

 

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:
 
   June 30, 2020   December 31, 2019 
Cash  $7,443   $2,234 
Restricted cash   13,393    27,409 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows  $20,836   $29,643 

 

   June 30, 2019   December 31, 2018 
Cash  $2,985   $3,744 
Restricted cash   23,884    13,982 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows  $26,869   $17,726 

 

See Notes to Consolidated Financial Statements.

 6 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 2020

(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+10.25%   9.25% Cash/ 2.00% PIK   4/24/2018  4/24/2023    2,876   $2,839   $2,740    1.2%
Magneto & Diesel Acquisition, Inc.   L+5.50%   6.50%  12/18/2018  12/18/2023    4,925    4,861    4,919    2.3%
Magneto & Diesel Acquisition, Inc. (Revolver)   L+5.50%   6.50%  12/18/2018  12/18/2023    500    500    500    0.2%
                  8,301    8,200    8,159    3.7%
Banking, Finance, Insurance & Real Estate                                  
777 SPV I, LLC (Delayed Draw) (f) (g)   L+8.50%   10.25%  4/15/2019  4/14/2023    5,025    4,979    5,032    2.3%
Echelon Funding I, LLC (g)   L+10.25%   10.75%  12/31/2019  1/11/2021    1,834    1,834    1,839    0.8%
Echelon Funding I, LLC (Delayed Draw) (f) (g) (h)   L+10.25%   10.75%  2/24/2017  1/11/2021    14,175    7,646    7,668    3.5%
HFZ Capital Group, LLC (g)   L+12.50%   14.00%  10/20/2017  11/25/2020    18,000    18,000    17,771    8.1%
HFZ Member RB Portfolio, LLC (g)   L+12.00%   13.43%  10/30/2018  10/29/2021    9,780    9,769    9,685    4.3%
Kudu Investment Holdings, LLC (g)   L+6.25%   7.25%  12/23/2019  12/23/2025    5,500    5,410    5,435    2.5%
Kudu Investment Holdings, LLC (Delayed Draw) (f) (g) (h)   L+6.25%   7.25%  12/23/2019  12/23/2025    3,667    1,640    1,621    0.7%
Kudu Investment Holdings, LLC (Revolver) (g) (h)   L+6.25%   7.25%  12/23/2019  12/23/2025    482            0.0%
Liftforward SPV II, LLC (g)   L+10.75%   11.25%  11/10/2016  11/10/2020    2,337    2,335    2,331    1.1%
TCP-NG (U.S.), LLC (g)   L+7.25%   8.75%  8/23/2019  8/22/2024    2,775    2,736    2,685    1.2%
TCP-NG (U.S.), LLC (Revolver) (g) (h)   L+7.25%   8.75%  8/23/2019  8/22/2024    180            0.0%
                  63,755    54,349    54,067    24.5%
Beverage, Food & Tobacco                                  
California Pizza Kitchen, Inc.   L+6.00%   7.00%(i)  8/19/2016  8/23/2022    6,755    6,727    1,979    0.9%
LX/JT Intermediate Holdings, Inc. (j)   L+6.00%   7.50%  3/11/2020  3/11/2025    9,911    9,723    9,668    4.3%
LX/JT Intermediate Holdings, Inc. (Revolver) (h)   L+6.00%   7.50%  3/11/2020  3/11/2025    833            0.0%
Toojay's Management, LLC   L+5.50%   6.50%  10/26/2018  10/26/2022    3,465    3,421    3,226    1.5%
Toojay's Management, LLC   L+5.50%   6.50%  10/26/2018  10/26/2022    475    475    442    0.2%
Toojay's Management, LLC (Revolver)   L+5.50%   6.50%  10/26/2018  10/26/2022    159    159    148    0.1%
                  21,598    20,505    15,463    7.0%
Capital Equipment                                  
MCP Shaw Acquisitionco, LLC (j)   L+6.50%   7.50%  2/28/2020  11/28/2025    9,975    9,788    9,760    4.4%
MCP Shaw Acquisitionco, LLC (Revolver)   L+6.50%   7.50%  2/28/2020  11/28/2025    1,784    1,784    1,745    0.8%
                  11,759    11,572    11,505    5.2%
Chemicals, Plastics & Rubber                                  
Midwest Composite Technologies, LLC (j)   L+6.75%   7.75%  12/2/2019  8/31/2023    14,925    14,667    14,515    6.6%
Midwest Composite Technologies, LLC   L+6.75%   7.75%  8/31/2018  8/31/2023    887    874    862    0.4%
Midwest Composite Technologies, LLC (Delayed Draw) (f) (h)   L+6.75%   7.75%  8/31/2018  8/31/2023    509    59    58    0.0%
Midwest Composite Technologies, LLC (Revolver)   L+6.75%   7.75%  8/31/2018  8/31/2023    90    90    88    0.0%
Valudor Products, LLC   L+7.50%   8.50%  6/18/2018  6/19/2023    1,553    1,532    1,466    0.7%
Valudor Products, LLC (k)   L+7.50%   8.50%  6/18/2018  6/19/2023    211    207    198    0.1%
Valudor Products, LLC (Revolver) (h)   L+9.50%   10.50%  6/18/2018  6/19/2023    818    510    483    0.2%
                  18,993    17,939    17,670    8.0%
Construction & Building                                  
Cali Bamboo, LLC   L+9.50%   8.00% Cash/ 2.50% PIK   7/10/2015  3/31/2022    7,814    7,812    7,562    3.4%
Cali Bamboo, LLC (Revolver) (h)   L+9.50%   8.00% Cash/ 2.50% PIK   7/10/2015  3/31/2022    2,165    930    900    0.4%
Dude Solutions Holdings, Inc.   L+7.50%   8.57%  6/14/2019  6/13/2025    10,000    9,802    9,895    4.5%
Dude Solutions Holdings, Inc. (Revolver) (h)   L+7.50%   8.57%  6/14/2019  6/13/2025    1,304    348    344    0.2%
                  21,283    18,892    18,701    8.5%
Consumer Goods: Durable                                  
Franchise Group Intermediate Holdco, LLC   L+8.00%   9.50%  2/24/2020  2/14/2025    3,933    3,859    3,790    1.7%
Nova Wildcat Amerock, LLC   L+5.75%   6.75%  10/12/2018  10/12/2023    9,055    8,926    8,943    4.1%
Nova Wildcat Amerock, LLC (Revolver) (h)   L+5.75%   6.75%  10/12/2018  10/12/2023    931    373    368    0.2%
Parterre Flooring & Surface Systems, LLC (j)   L+9.00%   10.00%(i)  8/22/2017  8/22/2022    7,920    7,837    5,374    2.4%
Parterre Flooring & Surface Systems, LLC (Revolver)   L+9.00%   10.00%(i)  8/22/2017  8/22/2022    696    696    472    0.2%
                  22,535    21,691    18,947    8.6%

 

 7 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(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)
 
Consumer Goods: Non-Durable                                  
Quirch Foods Holdings, LLC   L+5.75%   5.93%  2/14/2019  12/19/2025    1,970   $1,953   $1,940    0.9%
                  1,970    1,953    1,940    0.9%
Energy: Oil & Gas                                  
BJ Services, LLC   L+7.00%   8.50%  1/28/2019  1/3/2023    4,275    4,246    4,270    1.9%
                  4,275    4,246    4,270    1.9%
Environmental Industries                                  
StormTrap, LLC   L+5.50%   6.50%  12/10/2018  12/8/2023    7,900   7,798   7,529    3.4%
StormTrap, LLC (Revolver) (h)   L+5.50%   6.50%  12/10/2018  12/8/2023    432            0.0%
Synergy Environmental Corporation (j)   L+6.50%   7.00%  4/29/2016  9/30/2021    2,893    2,876    2,858    1.3%
Synergy Environmental Corporation (j)   L+6.50%   7.00%  4/29/2016  9/30/2021    484    482    478    0.2%
Synergy Environmental Corporation   L+6.50%   7.00%  4/29/2016  9/30/2021    827    827    817    0.4%
Synergy Environmental Corporation (Revolver) (h)   L+6.50%   7.00%  4/29/2016  9/30/2021    671    270    266    0.1%
                  13,207    12,253    11,948    5.4%
Healthcare & Pharmaceuticals                                  
American Optics Holdco, Inc. (g) (l)   L+7.00%   8.00%  9/13/2017  9/13/2022    2,186    2,164    2,157    1.0%
American Optics Holdco, Inc. (g) (l)   L+7.00%   8.00%  9/13/2017  9/13/2022    1,637    1,618    1,615    0.7%
American Optics Holdco, Inc. (Revolver) (g) (h) (l)   L+7.00%   8.00%  9/13/2017  9/13/2022    220            0.0%
American Optics Holdco, Inc. (Revolver) (g) (h) (l)   L+7.00%   8.00%  9/13/2017  9/13/2022    440            0.0%
Apotheco, LLC   L+6.75%   6.50% Cash/ 1.25% PIK   4/8/2019  4/8/2024    3,479    3,424    3,250    1.5%
Apotheco, LLC (Revolver)   L+6.75%   6.50% Cash/ 1.25% PIK   4/8/2019  4/8/2024    911    911    850    0.4%
Familia Dental Group Holdings, LLC (j)   L+10.75%   10.50% Cash/ 0.75% PIK   4/8/2016  4/8/2021    5,039    5,023    4,654    2.1%
Familia Dental Group Holdings, LLC   L+10.75%   10.50% Cash/ 0.75% PIK   4/8/2016  4/8/2021    485    485    448    0.2%
Familia Dental Group Holdings, LLC (Revolver)   L+10.75%   10.50% Cash/ 0.75% PIK   4/8/2016  4/8/2021    575    575    531    0.2%
Rockdale Blackhawk, LLC   n/a   n/a(m)   3/31/2015  n/a(n)            1,772    0.8%
                  14,972    14,200    15,277    6.9%
High Tech Industries                                  
Mindbody, Inc.   L+8.50%   8.00% Cash/ 1.50% PIK   2/15/2019  2/14/2025    6,341    6,241    6,071    2.8%
Mindbody, Inc. (Revolver)   L+8.00%   9.07%  2/15/2019  2/14/2025    667    667    636    0.3%
Newforma, Inc. (j)   L+5.50%   6.50%  6/30/2017  6/30/2022    12,087    12,005    12,041    5.5%
Newforma, Inc. (Revolver) (h)   L+5.50%   6.50%  6/30/2017  6/30/2022    1,250            0.0%
Planful, Inc.   L+6.00%   7.00%  12/28/2018  12/28/2023    9,500    9,358    9,310    4.2%
Planful, Inc. (Revolver) (h)   L+6.00%   7.00%  12/28/2018  12/28/2023    442            0.0%
Prototek Sheetmetal Fabrication, LLC   L+7.50%   8.50%  6/27/2019  12/12/2022    1,588    1,564    1,559    0.7%
Prototek Sheetmetal Fabrication, LLC   L+7.50%   8.50%  12/11/2017  12/12/2022    3,343    3,306    3,281    1.4%
Prototek Sheetmetal Fabrication, LLC   L+7.50%   8.50%  12/11/2017  12/12/2022    2,275    2,275    2,233    1.0%
Prototek Sheetmetal Fabrication, LLC (Revolver) (h)   L+7.50%   8.50%  12/11/2017  12/12/2022    233    117    115    0.1%
Recorded Future, Inc.   L+6.25%   7.25%  7/3/2019  7/3/2025    7,333    7,204    7,480    3.4%
Recorded Future, Inc. (Delayed Draw) (f) (h)   L+6.25%   7.25%  7/3/2019  7/3/2025    587            0.0%
Recorded Future, Inc. (Revolver) (h)   L+6.25%   7.25%  7/3/2019  7/3/2025    880    587    587    0.3%
RPL Bidco Limited  (g) (l) (o)   L+7.50%   8.00%  11/9/2017  11/9/2023    13,198    13,958    12,970    5.9%
RPL Bidco Limited (g) (l) (o)   L+7.50%   8.00%  5/22/2018  11/9/2023    1,612    1,639    1,583    0.7%
RPL Bidco Limited (Revolver) (g) (l) (o)   L+7.50%   8.56%  11/9/2017  11/9/2023    497    497    487    0.2%
                  61,833    59,418    58,353    26.5%
Media: Advertising, Printing & Publishing                                  
AdTheorent Holding Company, LLC   L+8.50%   9.00%  12/22/2016  12/22/2021    3,208    3,186    3,162    1.4%
Destination Media, Inc. (j)   L+5.50%   6.50%  4/7/2017  4/7/2022    4,525    4,496    4,478    2.0%
Destination Media, Inc. (Revolver)   L+5.50%   6.50%  4/7/2017  4/7/2022    542    542    536    0.3%
MC Sign Lessor Corp.   L+7.00%   8.00%  12/22/2017  8/30/2024    15,642    15,570    15,323    7.0%
MC Sign Lessor Corp. (Revolver) (h)   L+7.00%   8.00%  12/22/2017  8/30/2024    3,490    1,396    1,396    0.6%
XanEdu Publishing, Inc.   L+6.50%   7.50%  1/28/2020  1/28/2025    1,895    1,860    1,879    0.9%
XanEdu Publishing, Inc. (Revolver) (h)   L+6.50%   7.50%  1/28/2020  1/28/2025    495    494    489    0.2%
                  29,797    27,544    27,263    12.4%

 

 8 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(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)
 
Media: Broadcasting & Subscription                                  
Vice Group Holding, Inc.   L+12.00%   5.50% Cash/ 8.00% PIK   5/2/2019  11/2/2022    1,301   $1,292   $1,292    0.6%
Vice Group Holding, Inc.   L+12.00%   5.50% Cash/ 8.00% PIK   11/4/2019  11/2/2022    250    246    248    0.1%
Vice Group Holding, Inc.   L+12.00%   5.50% Cash/ 8.00% PIK   5/2/2019  11/2/2022    408    408    405    0.2%
Vice Group Holding, Inc. (Delayed Draw) (f) (h)    L+12.00%   13.50%  5/2/2019  11/2/2022    160            0.0%
                  2,119    1,946    1,945    0.9%
Media: Diversified & Production                              
Attom Intermediate Holdco, LLC   L+5.75%   6.75%  1/4/2019  1/4/2024    1,970    1,941    1,923    0.9%
Attom Intermediate Holdco, LLC   L+7.50%   8.75%  6/25/2020  1/4/2024    480    470    494    0.2%
Attom Intermediate Holdco, LLC (Revolver) (h)   L+5.75%   6.75%  1/4/2019  1/4/2024    320    240    234    0.1%
Crownpeak Technology, Inc.   L+6.25%   7.25%  2/28/2019  2/28/2024    4,000    3,939    3,937    1.8%
Crownpeak Technology, Inc.   L+6.25%   7.25%  2/28/2019  2/28/2024    60    60    59    0.0%
Crownpeak Technology, Inc. (Revolver) (h)   L+6.25%   7.25%  2/28/2019  2/28/2024    167            0.0%
                  6,997    6,650    6,647    3.0%
Retail                                  
Bluestem Brands, Inc.   P+6.50%   9.75%(i)  6/26/2015 

11/6/2020    2,275    2,270    1,149    0.5%
Forman Mills, Inc. (j)   L+9.50%   8.50% Cash/ 2.00% PIK   1/14/2020  10/4/2021    1,308    1,308    1,282    0.6%
Forman Mills, Inc. (j)   L+9.50%   8.50% Cash/ 2.00% PIK   10/4/2016  10/4/2021    744    739    729    0.3%
Forman Mills, Inc. (j)   L+9.50%   8.50% Cash/ 2.00% PIK   10/4/2016  10/4/2021    7,459    7,414    5,848    2.7%
LuLu's Fashion Lounge, LLC   L+9.50%   10.57%  8/21/2017  8/29/2022    4,156    4,094    3,554    1.6%
The Worth Collection, Ltd. (j)   L+8.50%   9.00%(i)  9/29/2016  9/29/2021    10,587    10,248    178    0.1%
                  26,529    26,073    12,740    5.8%

 

 9 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

 

Portfolio Company (a)  Spread
Above
Index (b)
  Interest
Rate
   Acquisition
Date (c)
  Maturity   Principal   Amortized
Cost
   Fair
Value (d)
   % of Net
Assets (e)
 
Services: Business                                  
Arcserve (USA), LLC   L+5.50%   6.50%  5/1/2019  5/1/2024    4,694   $4,618   $4,544    2.1%
Atlas Sign Industries of FLA, LLC (j)   L+11.50%  

11.50% Cash/

1.00% PIK

   5/14/2018  5/15/2023    3,545    3,350    3,236    1.5%
Burroughs, Inc. (j)   L+7.50%   8.50%  12/22/2017  12/22/2022    5,726    5,675    5,447    2.5%
Burroughs, Inc. (Revolver)   L+7.50%   8.50%  12/22/2017  12/22/2022    1,220    1,220    1,160    0.5%
Certify, Inc.   L+5.75%   6.75%  2/28/2019  2/28/2024    9,000    8,894    8,958    4.1%
Certify, Inc. (Delayed Draw) (f) (h)    L+5.75%   6.75%  2/28/2019  2/28/2024    1,227    1,023    1,018    0.5%
Certify, Inc. (Revolver) (h)   L+5.75%   6.75%  2/28/2019  2/28/2024    409    61    61    0.0%
HS4 Acquisitionco, Inc.   L+6.75%   7.75%  7/9/2019  7/9/2025    10,050    9,874    9,814    4.4%
HS4 Acquisitionco, Inc. (Revolver) (h)   L+6.75%   7.75%  7/9/2019  7/9/2025    817    265    259    0.1%
IT Global Holding, LLC   L+9.00%   10.00%  11/15/2018  11/10/2023    10,106    9,956    9,493    4.3%
IT Global Holding, LLC   L+9.00%   10.00%  7/19/2019  11/10/2023    3,767    3,702    3,539    1.6%
IT Global Holding, LLC (Revolver)   L+9.00%   10.00%  11/15/2018  11/10/2023    875    875    822    0.4%
Kaseya Traverse, Inc.   L+7.00%   5.09% Cash/ 3.00% PIK   5/3/2019  5/2/2025    6,520    6,411    6,361    2.9%
Kaseya Traverse, Inc. (Delayed Draw) (f) (h)   L+7.00%   5.09% Cash/ 3.00% PIK   5/3/2019  5/2/2025    724    95    93    0.0%
Kaseya Traverse, Inc. (Delayed Draw) (f) (h)   L+7.00%   5.09% Cash/ 3.00% PIK   3/4/2020  3/4/2022    289            0.0%
Kaseya Traverse, Inc. (Revolver) (h)   L+6.50%   7.50%  5/3/2019  5/2/2025    506    501    489    0.2%
Madison Logic, Inc. (j)   L+8.00%   8.50%  11/30/2016  11/30/2021    9,500    9,434    9,329    4.2%
Madison Logic, Inc. (Revolver) (h)   L+8.00%   8.50%  11/30/2016  11/30/2021    988            0.0%
RedZone Robotics, Inc.   L+7.75%   7.75% Cash/ 1.00% PIK   6/1/2018  6/5/2023    620    612    552    0.2%
RedZone Robotics, Inc. (Revolver) (h)   L+6.75%   7.75%  6/1/2018  6/5/2023    158            0.0%
Security Services Acquisition Sub Corp. (j)   L+6.00%   7.00%  2/15/2019  2/15/2024    3,456    3,405    3,437    1.6%
Security Services Acquisition Sub Corp. (Delayed Draw) (f) (h) (j)   L+6.00%   7.00%  2/15/2019  2/15/2024    2,482    1,753    1,743    0.8%
Security Services Acquisition Sub Corp. (Delayed Draw) (f) (h) (j)   L+6.00%   7.00%  2/15/2019  2/15/2024    2,182    1,063    1,057    0.5%
Security Services Acquisition Sub Corp. (Revolver)   L+6.00%   7.00%  2/15/2019  2/15/2024    1,563    1,563    1,554    0.7%
TRP Construction Group, LLC (j)   L+7.00%   8.00%  10/5/2017  10/5/2022    7,609    7,533    7,521    3.4%
TRP Construction Group, LLC   L+7.00%   8.00%  9/5/2018  10/5/2022    6,444    6,444    6,370    2.9%
TRP Construction Group, LLC (Revolver) (h)   L+7.00%   8.00%  10/5/2017  10/5/2022    2,133            0.0%
VPS Holdings, LLC   L+7.00%   8.00%  10/5/2018  10/4/2024    4,475    4,404    4,238    1.9%
VPS Holdings, LLC   L+7.00%   8.00%  10/5/2018  10/4/2024    3,650    3,650    3,457    1.6%
VPS Holdings, LLC (Revolver) (h)   L+7.00%   8.00%  10/5/2018  10/4/2024    1,000