UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2014
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from: to
Commission File Number: 001-33723
Main Street Capital Corporation
(Exact name of registrant as specified in its charter)
|
Maryland |
|
41-2230745 |
|
(State or other jurisdiction of incorporation or organization) |
|
(I.R.S. Employer Identification No.) |
|
|
|
|
|
1300 Post Oak Boulevard, Suite 800 |
|
|
|
Houston, TX |
|
77056 |
|
(Address of principal executive offices) |
|
(Zip Code) |
(713) 350-6000
(Registrant’s telephone number including area code)
n/a
(Former name, former address and former fiscal year, if changed since last report)
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 o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes o No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
|
Large accelerated filer x |
|
Accelerated filer o |
|
|
|
|
|
Non-accelerated filer o |
|
Smaller reporting company o |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The number of shares outstanding of the issuer’s common stock as of May 8, 2014 was 44,546,660.
MAIN STREET CAPITAL CORPORATION
(in thousands, except shares and per share amounts)
|
|
|
March 31, 2014 |
|
December 31, 2013 |
| ||
|
|
|
(Unaudited) |
|
|
| ||
|
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Portfolio investments at fair value: |
|
|
|
|
| ||
|
Control investments (cost: $275,694 and $277,411 as of March 31, 2014 and December 31, 2013, respectively) |
|
$ |
364,559 |
|
$ |
356,973 |
|
|
Affiliate investments (cost: $241,145 and $242,592 as of March 31, 2014 and December 31, 2013, respectively) |
|
265,240 |
|
268,113 |
| ||
|
Non-Control/Non-Affiliate investments (cost: $661,936 and $643,068 as of March 31, 2014 and December 31, 2013, respectively) |
|
679,080 |
|
661,102 |
| ||
|
|
|
|
|
|
| ||
|
Total portfolio investments (cost: $1,178,775 and $1,163,071 as of March 31, 2014 and December 31, 2013, respectively) |
|
1,308,879 |
|
1,286,188 |
| ||
|
Marketable securities and idle funds investments (cost: $11,792 and $14,885 as of March 31, 2014 and December 31, 2013, respectively) |
|
11,258 |
|
13,301 |
| ||
|
|
|
|
|
|
| ||
|
Total investments (cost: $1,190,567 and $1,177,956 as of March 31, 2014 and December 31, 2013, respectively) |
|
1,320,137 |
|
1,299,489 |
| ||
|
|
|
|
|
|
| ||
|
Cash and cash equivalents |
|
24,362 |
|
34,701 |
| ||
|
Interest receivable and other assets |
|
18,457 |
|
16,054 |
| ||
|
Receivable for securities sold |
|
3,216 |
|
— |
| ||
|
Deferred financing costs (net of accumulated amortization of $5,102 and $4,722 as of March 31, 2014 and December 31, 2013, respectively) |
|
10,400 |
|
9,931 |
| ||
|
|
|
|
|
|
| ||
|
Total assets |
|
$ |
1,376,572 |
|
$ |
1,360,175 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Credit facility |
|
$ |
236,000 |
|
$ |
237,000 |
|
|
SBIC debentures (par: $225,000 as of March 31, 2014 and $200,200 as of December 31, 2013, par of $75,200 is recorded at a fair value of $63,239 and $62,050 as of March 31, 2014 and December 31, 2013, respectively) |
|
213,039 |
|
187,050 |
| ||
|
Notes payable |
|
90,882 |
|
90,882 |
| ||
|
Payable for securities purchased |
|
12,488 |
|
27,088 |
| ||
|
Deferred tax liability, net |
|
6,938 |
|
5,940 |
| ||
|
Dividend payable |
|
6,592 |
|
6,577 |
| ||
|
Accounts payable and other liabilities |
|
4,060 |
|
10,549 |
| ||
|
Interest payable |
|
2,166 |
|
2,556 |
| ||
|
|
|
|
|
|
| ||
|
Total liabilities |
|
572,165 |
|
567,642 |
| ||
|
|
|
|
|
|
| ||
|
Commitments and contingencies (Note M) |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
NET ASSETS |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Common stock, $0.01 par value per share (150,000,000 shares authorized; 39,945,148 and 39,852,604 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively) |
|
399 |
|
398 |
| ||
|
Additional paid-in capital |
|
699,377 |
|
694,981 |
| ||
|
Accumulated net investment income, net of cumulative dividends of $218,897 and $199,140 as of March 31, 2014 and December 31, 2013, respectively |
|
23,760 |
|
22,778 |
| ||
|
Accumulated net realized gain from investments (accumulated net realized gain from investments of $18,558 before cumulative dividends of $43,449 as of March 31, 2014 and accumulated net realized gain from investments of $17,115 before cumulative dividends of $43,449 as of December 31, 2013) |
|
(24,891 |
) |
(26,334 |
) | ||
|
Net unrealized appreciation, net of income taxes |
|
105,762 |
|
100,710 |
| ||
|
|
|
|
|
|
| ||
|
Total net assets |
|
804,407 |
|
792,533 |
| ||
|
|
|
|
|
|
| ||
|
Total liabilities and net assets |
|
$ |
1,376,572 |
|
$ |
1,360,175 |
|
|
|
|
|
|
|
| ||
|
NET ASSET VALUE PER SHARE |
|
$ |
20.14 |
|
$ |
19.89 |
|
The accompanying notes are an integral part of these financial statements
MAIN STREET CAPITAL CORPORATION
Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
|
|
|
Three Months Ended March 31, |
| ||||
|
|
|
2014 |
|
2013 |
| ||
|
INVESTMENT INCOME: |
|
|
|
|
| ||
|
Interest, fee and dividend income: |
|
|
|
|
| ||
|
Control investments |
|
$ |
9,296 |
|
$ |
6,534 |
|
|
Affiliate investments |
|
5,640 |
|
5,661 |
| ||
|
Non-Control/Non-Affiliate investments |
|
15,633 |
|
13,138 |
| ||
|
Interest, fee and dividend income |
|
30,569 |
|
25,333 |
| ||
|
Interest, fee and dividend income from marketable securities and idle funds |
|
207 |
|
311 |
| ||
|
Total investment income |
|
30,776 |
|
25,644 |
| ||
|
EXPENSES: |
|
|
|
|
| ||
|
Interest |
|
(5,286 |
) |
(3,882 |
) | ||
|
Compensation |
|
(2,351 |
) |
— |
| ||
|
General and administrative |
|
(1,547 |
) |
(687 |
) | ||
|
Share-based compensation |
|
(853 |
) |
(603 |
) | ||
|
Expenses reimbursed to Internal Investment Manager |
|
— |
|
(3,189 |
) | ||
|
Total expenses |
|
(10,037 |
) |
(8,361 |
) | ||
|
NET INVESTMENT INCOME |
|
20,739 |
|
17,283 |
| ||
|
|
|
|
|
|
| ||
|
NET REALIZED GAIN (LOSS): |
|
|
|
|
| ||
|
Non-Control/Non-Affiliate investments |
|
1,433 |
|
(343 |
) | ||
|
Marketable securities and idle funds investments |
|
10 |
|
(59 |
) | ||
|
Total net realized gain (loss) |
|
1,443 |
|
(402 |
) | ||
|
NET REALIZED INCOME |
|
22,182 |
|
16,881 |
| ||
|
|
|
|
|
|
| ||
|
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION): |
|
|
|
|
| ||
|
Portfolio investments |
|
6,857 |
|
10,078 |
| ||
|
Marketable securities and idle funds investments |
|
1,049 |
|
(67 |
) | ||
|
SBIC debentures |
|
(1,189 |
) |
(1,212 |
) | ||
|
Total net change in unrealized appreciation |
|
6,717 |
|
8,799 |
| ||
|
|
|
|
|
|
| ||
|
INCOME TAXES: |
|
|
|
|
| ||
|
Federal and state income, excise, and other taxes |
|
(667 |
) |
(671 |
) | ||
|
Deferred taxes |
|
(998 |
) |
(1,380 |
) | ||
|
Income tax provision |
|
(1,665 |
) |
(2,051 |
) | ||
|
|
|
|
|
|
| ||
|
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ATTRIBUTABLE TO COMMON STOCK |
|
$ |
27,234 |
|
$ |
23,629 |
|
|
|
|
|
|
|
| ||
|
NET INVESTMENT INCOME PER SHARE - BASIC AND DILUTED |
|
$ |
0.52 |
|
$ |
0.50 |
|
|
NET REALIZED INCOME PER SHARE - BASIC AND DILUTED |
|
$ |
0.56 |
|
$ |
0.49 |
|
|
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ATTRIBUTABLE TO COMMON STOCK PER SHARE - BASIC AND DILUTED |
|
$ |
0.68 |
|
$ |
0.68 |
|
|
|
|
|
|
|
| ||
|
DIVIDENDS PAID PER SHARE: |
|
|
|
|
| ||
|
Regular monthly dividends |
|
$ |
0.50 |
|
$ |
0.45 |
|
|
Supplemental dividends |
|
— |
|
0.35 |
| ||
|
Total dividends |
|
$ |
0.50 |
|
$ |
0.80 |
|
|
|
|
|
|
|
| ||
|
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED |
|
39,898,573 |
|
34,699,505 |
| ||
The accompanying notes are an integral part of these financial statements
MAIN STREET CAPITAL CORPORATION
Consolidated Statements of Changes in Net Assets
(in thousands, except shares)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
Net Unrealized |
|
|
| ||||||
|
|
|
|
|
|
|
|
|
Accumulated |
|
Net Realized |
|
Appreciation from |
|
|
| ||||||
|
|
|
Common Stock |
|
Additional |
|
Net Investment |
|
Gain From |
|
Investments, |
|
|
| ||||||||
|
|
|
Number |
|
Par |
|
Paid-In |
|
Income, Net |
|
Investments, |
|
Net of Income |
|
Total Net |
| ||||||
|
|
|
of Shares |
|
Value |
|
Capital |
|
of Dividends |
|
Net of Dividends |
|
Taxes |
|
Asset Value |
| ||||||
|
Balances at December 31, 2012 |
|
34,589,484 |
|
$ |
346 |
|
$ |
544,136 |
|
$ |
35,869 |
|
$ |
(19,155 |
) |
$ |
81,780 |
|
$ |
642,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Share-based compensation |
|
— |
|
— |
|
603 |
|
— |
|
— |
|
— |
|
603 |
| ||||||
|
Dividend reinvestment |
|
164,760 |
|
2 |
|
5,320 |
|
— |
|
— |
|
— |
|
5,322 |
| ||||||
|
Issuance of restricted stock |
|
1,100 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| ||||||
|
Issuances of common stock |
|
18,125 |
|
— |
|
578 |
|
— |
|
— |
|
— |
|
578 |
| ||||||
|
Dividends to stockholders |
|
— |
|
— |
|
— |
|
(27,715 |
) |
(183 |
) |
— |
|
(27,898 |
) | ||||||
|
Net increase resulting from operations |
|
— |
|
— |
|
— |
|
17,283 |
|
(402 |
) |
6,748 |
|
23,629 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Balances at March 31, 2013 |
|
34,773,469 |
|
$ |
348 |
|
$ |
550,637 |
|
$ |
25,437 |
|
$ |
(19,740 |
) |
$ |
88,528 |
|
$ |
645,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Balances at December 31, 2013 |
|
39,852,604 |
|
$ |
398 |
|
$ |
694,981 |
|
$ |
22,778 |
|
$ |
(26,334 |
) |
$ |
100,710 |
|
$ |
792,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Share-based compensation |
|
— |
|
— |
|
853 |
|
— |
|
— |
|
— |
|
853 |
| ||||||
|
Purchase of vested stock for employee payroll tax withholding |
|
(1,181 |
) |
— |
|
(40 |
) |
— |
|
— |
|
— |
|
(40 |
) | ||||||
|
Dividend reinvestment |
|
93,328 |
|
1 |
|
3,225 |
|
— |
|
— |
|
— |
|
3,226 |
| ||||||
|
Amortization of directors’ deferred compensation |
|
— |
|
— |
|
68 |
|
— |
|
— |
|
— |
|
68 |
| ||||||
|
Issuance of restricted stock |
|
397 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| ||||||
|
Tax benefit related to vesting of restricted shares |
|
— |
|
— |
|
290 |
|
— |
|
— |
|
— |
|
290 |
| ||||||
|
Dividends to stockholders |
|
— |
|
— |
|
— |
|
(19,757 |
) |
— |
|
— |
|
(19,757 |
) | ||||||
|
Net increase resulting from operations |
|
— |
|
— |
|
— |
|
20,739 |
|
1,443 |
|
5,052 |
|
27,234 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Balances at March 31, 2014 |
|
39,945,148 |
|
$ |
399 |
|
$ |
699,377 |
|
$ |
23,760 |
|
$ |
(24,891 |
) |
$ |
105,762 |
|
$ |
804,407 |
|
The accompanying notes are an integral part of these financial statements
MAIN STREET CAPITAL CORPORATION
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
|
|
|
Three Months Ended March 31, |
| ||||
|
|
|
2014 |
|
2013 |
| ||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
| ||
|
Net increase in net assets resulting from operations |
|
$ |
27,234 |
|
$ |
23,629 |
|
|
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: |
|
|
|
|
| ||
|
Investments in portfolio companies |
|
(146,896 |
) |
(125,982 |
) | ||
|
Proceeds from sales and repayments of investments in portfolio companies |
|
119,462 |
|
81,371 |
| ||
|
Investments in marketable securities and idle funds investments |
|
(2,105 |
) |
(16,701 |
) | ||
|
Proceeds from sales and repayments of marketable securities and idle funds investments |
|
5,207 |
|
28,819 |
| ||
|
Net change in unrealized appreciation |
|
(6,717 |
) |
(8,799 |
) | ||
|
Net realized (gain) loss |
|
(1,443 |
) |
402 |
| ||
|
Accretion of unearned income |
|
(2,611 |
) |
(2,530 |
) | ||
|
Payment-in-kind interest |
|
(1,655 |
) |
(1,326 |
) | ||
|
Cumulative dividends |
|
(369 |
) |
(180 |
) | ||
|
Share-based compensation expense |
|
853 |
|
603 |
| ||
|
Amortization of deferred financing costs |
|
380 |
|
227 |
| ||
|
Deferred taxes |
|
998 |
|
1,380 |
| ||
|
Changes in other assets and liabilities: |
|
|
|
|
| ||
|
Interest receivable and other assets |
|
(2,557 |
) |
2,666 |
| ||
|
Interest payable |
|
(390 |
) |
(2,434 |
) | ||
|
Payable to affiliated Internal Investment Manager |
|
— |
|
(3,960 |
) | ||
|
Accounts payable and other liabilities |
|
(6,258 |
) |
(2,105 |
) | ||
|
Deferred fees and other |
|
133 |
|
620 |
| ||
|
Net cash used in operating activities |
|
(16,734 |
) |
(24,300 |
) | ||
|
|
|
|
|
|
| ||
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
| ||
|
Dividends paid to stockholders |
|
(16,516 |
) |
(22,374 |
) | ||
|
Proceeds from issuance of SBIC debentures |
|
24,800 |
|
— |
| ||
|
Proceeds from credit facility |
|
46,000 |
|
77,000 |
| ||
|
Repayments on credit facility |
|
(47,000 |
) |
(68,000 |
) | ||
|
Payment of deferred loan costs and SBIC debenture fees |
|
(849 |
) |
— |
| ||
|
Other |
|
(40 |
) |
378 |
| ||
|
Net cash provided by financing activities |
|
6,395 |
|
(12,996 |
) | ||
|
|
|
|
|
|
| ||
|
Net increase (decrease) in cash and cash equivalents |
|
(10,339 |
) |
(37,296 |
) | ||
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
34,701 |
|
63,517 |
| ||
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
24,362 |
|
$ |
26,221 |
|
|
|
|
|
|
|
| ||
|
Supplemental cash flow disclosures: |
|
|
|
|
| ||
|
Interest paid |
|
$ |
5,296 |
|
$ |
6,089 |
|
|
Taxes paid |
|
$ |
2,657 |
|
$ |
2,059 |
|
|
Non-cash financing activities: |
|
|
|
|
| ||
|
Shares issued pursuant to the DRIP |
|
$ |
3,226 |
|
$ |
5,322 |
|
The accompanying notes are an integral part of these financial statements
MAIN STREET CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(in thousands)
(Unaudited)
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Control Investments (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC Interests, LLC |
|
Recreational and Educational Shooting Facility |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11% Secured Debt (Maturity - July 31, 2018) |
|
3,425 |
|
3,364 |
|
3,364 |
|
|
|
|
|
|
Member Units (Fully diluted 48.4%) (8) |
|
|
|
1,500 |
|
1,590 |
|
|
|
|
|
|
|
|
|
|
4,864 |
|
4,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond-Coat, Inc. |
|
Casing and Tubing Coating Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - December 28, 2017) |
|
14,750 |
|
14,589 |
|
14,750 |
|
|
|
|
|
|
Common Stock (Fully diluted 42.9%) |
|
|
|
6,220 |
|
9,250 |
|
|
|
|
|
|
|
|
|
|
20,809 |
|
24,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Café Brazil, LLC |
|
Casual Restaurant Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 69.0%) (8) |
|
|
|
1,742 |
|
6,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California Healthcare Medical Billing, Inc. |
|
Outsourced Billing and Revenue Cycle Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - October 17, 2015) |
|
8,103 |
|
7,988 |
|
8,103 |
|
|
|
|
|
|
Warrants (Fully diluted 21.5%) |
|
|
|
1,193 |
|
3,380 |
|
|
|
|
|
|
Common Stock (Fully diluted 9.6%) |
|
|
|
1,176 |
|
1,560 |
|
|
|
|
|
|
|
|
|
|
10,357 |
|
13,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CBT Nuggets, LLC |
|
Produces and Sells IT Training Certification Videos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 41.6%) (8) |
|
|
|
1,300 |
|
18,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceres Management, LLC (Lambs Tire & Automotive) |
|
Aftermarket Automotive Services Chain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14% Secured Debt (Maturity - May 31, 2018) |
|
4,000 |
|
4,000 |
|
4,000 |
|
|
|
|
|
|
Class B Member Units (12% cumulative) (8) |
|
|
|
3,695 |
|
3,695 |
|
|
|
|
|
|
Member Units (Fully diluted 65.0%) |
|
|
|
5,273 |
|
1,190 |
|
|
|
|
|
|
9.5% Secured Debt (Lamb’s Real Estate Investment I, LLC) (Maturity - October 1, 2025) |
|
1,004 |
|
1,004 |
|
1,004 |
|
|
|
|
|
|
Member Units (Lamb’s Real Estate Investment I, LLC) (Fully diluted 100.0%) (8) |
|
|
|
625 |
|
1,060 |
|
|
|
|
|
|
|
|
|
|
14,597 |
|
10,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Garreco, LLC |
|
Manufacturer and Supplier of Dental Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14% Secured Debt (Maturity - January 12, 2018) |
|
5,800 |
|
5,698 |
|
5,698 |
|
|
|
|
|
|
Member Units (Fully diluted 32.0%) (8) |
|
|
|
1,200 |
|
1,200 |
|
|
|
|
|
|
|
|
|
|
6,898 |
|
6,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Manufacturing, LLC |
|
Manufacturer of Specialty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity - June 30, 2017) |
|
744 |
|
744 |
|
744 |
|
|
|
|
|
|
Member Units (Fully diluted 32.1%) (8) |
|
|
|
2,980 |
|
13,220 |
|
|
|
|
|
|
|
|
|
|
3,724 |
|
13,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harrison Hydra-Gen, Ltd. |
|
Manufacturer of Hydraulic Generators |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.5% Secured Debt (Maturity - June 4, 2015) |
|
4,487 |
|
4,302 |
|
4,487 |
|
|
|
|
|
|
Preferred Stock (8% cumulative) (8) |
|
|
|
1,190 |
|
1,190 |
|
|
|
|
|
|
Common Stock (Fully diluted 34.4%) (8) |
|
|
|
718 |
|
1,560 |
|
|
|
|
|
|
|
|
|
|
6,210 |
|
7,237 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Hawthorne Customs and Dispatch Services, LLC |
|
Facilitator of Import Logistics, Brokerage, and Warehousing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 47.6%) (8) |
|
|
|
589 |
|
220 |
|
|
|
|
|
|
Member Units (Wallisville Real Estate, LLC) (Fully diluted 59.1%) (8) |
|
|
|
1,215 |
|
2,050 |
|
|
|
|
|
|
|
|
|
|
1,804 |
|
2,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hydratec, Inc. |
|
Designer and Installer of Micro-Irrigation Systems |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock (Fully diluted 95.9%) (8) |
|
|
|
7,095 |
|
13,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDX Broker, LLC |
|
Provider of Marketing and CRM Tools for Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.5% Secured Debt (Maturity - November 18, 2018) |
|
10,571 |
|
10,471 |
|
10,471 |
|
|
|
|
|
|
Member Units (Fully diluted 63.9%) |
|
|
|
5,029 |
|
5,029 |
|
|
|
|
|
|
|
|
|
|
15,500 |
|
15,500 |
|
|
Impact Telecom, Inc. |
|
Telecommunications Services Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 6.50%, Secured Debt (Maturity - May 31, 2018) (9) |
|
1,575 |
|
1,568 |
|
1,568 |
|
|
|
|
|
|
13% Secured Debt (Maturity - May 31, 2018) |
|
22,500 |
|
14,940 |
|
14,940 |
|
|
|
|
|
|
Warrants (Fully diluted 40.0%) |
|
|
|
8,000 |
|
8,760 |
|
|
|
|
|
|
|
|
|
|
24,508 |
|
25,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indianapolis Aviation Partners, LLC |
|
Fixed Base Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15% Secured Debt (Maturity - September 15, 2014) |
|
3,400 |
|
3,356 |
|
3,400 |
|
|
|
|
|
|
Warrants (Fully diluted 30.1%) |
|
|
|
1,129 |
|
2,270 |
|
|
|
|
|
|
|
|
|
|
4,485 |
|
5,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jensen Jewelers of Idaho, LLC |
|
Retail Jewelry Store |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Plus 6.75%, Current Coupon 10.00%, Secured Debt (Maturity - November 14, 2016) (9) |
|
4,105 |
|
4,049 |
|
4,105 |
|
|
|
|
|
|
Member Units (Fully diluted 60.8%) (8) |
|
|
|
811 |
|
3,310 |
|
|
|
|
|
|
|
|
|
|
4,860 |
|
7,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lighting Unlimited, LLC |
|
Commercial and Residential Lighting Products and Design Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8% Secured Debt (Maturity - August 22, 2014) |
|
1,622 |
|
1,622 |
|
1,622 |
|
|
|
|
|
|
Preferred Stock (non-voting) |
|
|
|
451 |
|
451 |
|
|
|
|
|
|
Warrants (Fully diluted 7.1%) |
|
|
|
54 |
|
40 |
|
|
|
|
|
|
Common Stock (Fully diluted 70.0%) (8) |
|
|
|
100 |
|
360 |
|
|
|
|
|
|
|
|
|
|
2,227 |
|
2,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine Shelters Holdings, LLC (LoneStar Marine Shelters) |
|
Fabricator of Marine and Industrial Shelters |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - December 28, 2017) |
|
10,250 |
|
10,085 |
|
10,085 |
|
|
|
|
|
|
Preferred Stock (Fully diluted 26.7%) |
|
|
|
3,750 |
|
3,750 |
|
|
|
|
|
|
|
|
|
|
13,835 |
|
13,835 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Mid-Columbia Lumber Products, LLC |
|
Manufacturer of Finger- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10% Secured Debt (Maturity - December 18, 2017) |
|
1,750 |
|
1,750 |
|
1,750 |
|
|
|
|
|
|
12% Secured Debt (Maturity - December 18, 2017) |
|
3,900 |
|
3,900 |
|
3,900 |
|
|
|
|
|
|
9.5% Secured Debt (Mid - Columbia Real Estate, LLC) (Maturity - May 13, 2025) |
|
960 |
|
961 |
|
961 |
|
|
|
|
|
|
Member Units (Fully diluted 55.1%) (8) |
|
|
|
1,244 |
|
9,310 |
|
|
|
|
|
|
Member Units (Mid - Columbia Real Estate, LLC) (Fully diluted 50.0%) (8) |
|
|
|
250 |
|
440 |
|
|
|
|
|
|
|
|
|
|
8,105 |
|
16,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSC Adviser I, LLC |
|
Third Party Investment Advisory Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 100.0%) |
|
|
|
— |
|
2,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPCO Precast, LLC |
|
Precast Concrete Manufacturing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - September 1, 2015) (9) |
|
2,750 |
|
2,710 |
|
2,750 |
|
|
|
|
|
|
Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - February 1, 2016) (9) |
|
1,438 |
|
1,425 |
|
1,438 |
|
|
|
|
|
|
18% Secured Debt (Maturity - February 1, 2016) |
|
4,468 |
|
4,423 |
|
4,468 |
|
|
|
|
|
|
Member Units (Fully diluted 44.0%) (8) |
|
|
|
2,975 |
|
6,090 |
|
|
|
|
|
|
|
|
|
|
11,533 |
|
14,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRI Clinical Research, LLC |
|
Clinical Research Service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14% Secured Debt (Maturity - September 8, 2016) |
|
4,392 |
|
4,237 |
|
4,237 |
|
|
|
|
|
|
Warrants (Fully diluted 12.5%) |
|
|
|
252 |
|
230 |
|
|
|
|
|
|
Member Units (Fully diluted 24.8%) |
|
|
|
671 |
|
711 |
|
|
|
|
|
|
|
|
|
|
5,160 |
|
5,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRP Jones, LLC |
|
Manufacturer of Hoses, Fittings and Assemblies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - December 22, 2016) |
|
12,100 |
|
11,431 |
|
12,100 |
|
|
|
|
|
|
Warrants (Fully diluted 12.2%) |
|
|
|
817 |
|
1,500 |
|
|
|
|
|
|
Member Units (Fully diluted 43.2%) (8) |
|
|
|
2,900 |
|
5,080 |
|
|
|
|
|
|
|
|
|
|
15,148 |
|
18,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OMi Holdings, Inc. |
|
Manufacturer of Overhead Cranes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock (Fully diluted 48.0%) (8) |
|
|
|
1,080 |
|
13,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pegasus Research Group, LLC (Televerde) |
|
Provider of Telemarketing and Data Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15% Secured Debt (Maturity - January 6, 2016) |
|
4,591 |
|
4,564 |
|
4,591 |
|
|
|
|
|
|
Member Units (Fully diluted 43.7%) (8) |
|
|
|
1,250 |
|
4,860 |
|
|
|
|
|
|
|
|
|
|
5,814 |
|
9,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPL RVs, Inc. |
|
Recreational Vehicle Dealer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.1% Secured Debt (Maturity - June 10, 2015) |
|
7,860 |
|
7,832 |
|
7,860 |
|
|
|
|
|
|
Common Stock (Fully diluted 51.1%) |
|
|
|
2,150 |
|
8,110 |
|
|
|
|
|
|
|
|
|
|
9,982 |
|
15,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principle Environmental, LLC |
|
Noise Abatement Service Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - February 1, 2016) |
|
3,506 |
|
3,114 |
|
3,506 |
|
|
|
|
|
|
12% Current / 2% PIK Secured Debt (Maturity - February 1, 2016) |
|
4,697 |
|
4,646 |
|
4,678 |
|
|
|
|
|
|
Warrants (Fully diluted 14.6%) |
|
|
|
1,200 |
|
1,810 |
|
|
|
|
|
|
Member Units (Fully diluted 22.6%) (8) |
|
|
|
1,863 |
|
4,560 |
|
|
|
|
|
|
|
|
|
|
10,823 |
|
14,554 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
River Aggregates, LLC |
|
Processor of Construction Aggregates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - June 30, 2018) |
|
500 |
|
500 |
|
500 |
|
|
|
|
|
|
Zero Coupon Secured Debt (Maturity - June 30, 2018) |
|
750 |
|
430 |
|
430 |
|
|
|
|
|
|
Member Units (Fully diluted 38.3%) |
|
|
|
1,150 |
|
— |
|
|
|
|
|
|
Member Units (RA Properties, LLC) (Fully diluted 50.0%) |
|
|
|
369 |
|
369 |
|
|
|
|
|
|
|
|
|
|
2,449 |
|
1,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern RV, LLC |
|
Recreational Vehicle Dealer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13% Secured Debt (Maturity - August 8, 2018) |
|
11,400 |
|
11,245 |
|
11,245 |
|
|
|
|
|
|
Member Units (Fully diluted 50.2%) |
|
|
|
1,680 |
|
3,460 |
|
|
|
|
|
|
13% Secured Debt (Southern RV Real Estate, LLC) (Maturity - August 8, 2018) (8) |
|
3,250 |
|
3,206 |
|
3,206 |
|
|
|
|
|
|
Member Units (Southern RV Real Estate, LLC) (Fully diluted 55.7%) |
|
|
|
480 |
|
470 |
|
|
|
|
|
|
|
|
|
|
16,611 |
|
18,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The MPI Group, LLC |
|
Manufacturer of Custom Hollow Metal Doors, Frames and Accessories |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.5% Current / 4.5% PIK Secured Debt (Maturity - July 1, 2014) |
|
1,079 |
|
1,079 |
|
880 |
|
|
|
|
|
|
6% Current / 6% PIK Secured Debt (Maturity - July 1, 2014) |
|
5,845 |
|
5,845 |
|
4,806 |
|
|
|
|
|
|
Warrants (Fully diluted 52.3%) |
|
|
|
1,096 |
|
— |
|
|
|
|
|
|
|
|
|
|
8,020 |
|
5,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Travis Acquisition LLC |
|
Manufacturer of Aluminum Trailers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - August 30, 2018) |
|
9,085 |
|
8,919 |
|
9,085 |
|
|
|
|
|
|
Member Units (Fully diluted 65.5%) |
|
|
|
7,100 |
|
10,420 |
|
|
|
|
|
|
|
|
|
|
16,019 |
|
19,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Uvalco Supply, LLC |
|
Farm and Ranch Supply Store |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9% Secured Debt (Maturity - January 1, 2019) |
|
2,106 |
|
2,106 |
|
2,106 |
|
|
|
|
|
|
Member Units (Fully diluted 42.8%) (8) |
|
|
|
1,113 |
|
3,780 |
|
|
|
|
|
|
|
|
|
|
3,219 |
|
5,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vision Interests, Inc. |
|
Manufacturer / Installer of Commercial Signage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13% Secured Debt (Maturity - December 23, 2016) |
|
3,204 |
|
3,161 |
|
3,161 |
|
|
|
|
|
|
Series A Preferred Stock (Fully diluted 50.9%) |
|
|
|
3,000 |
|
1,510 |
|
|
|
|
|
|
Common Stock (Fully diluted 19.1%) |
|
|
|
3,706 |
|
— |
|
|
|
|
|
|
|
|
|
|
9,867 |
|
4,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ziegler’s NYPD, LLC |
|
Casual Restaurant Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - October 1, 2018) (9) |
|
1,000 |
|
1,000 |
|
1,000 |
|
|
|
|
|
|
9% Current / 9% PIK Secured Debt (Maturity - October 1, 2018) |
|
5,449 |
|
5,449 |
|
4,820 |
|
|
|
|
|
|
Warrants (Fully diluted 46.6%) |
|
|
|
600 |
|
— |
|
|
|
|
|
|
|
|
|
|
7,049 |
|
5,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Control Investments (27.6% of total investments at fair value) |
|
|
|
275,694 |
|
364,559 |
| ||||
MAIN STREET CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(in thousands)
(Unaudited)
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Affiliate Investments (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Sensor Technologies, Inc. |
|
Manufacturer of Commercial / Industrial Sensors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants (Fully diluted 19.6%) |
|
|
|
50 |
|
9,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bridge Capital Solutions Corporation |
|
Financial Services and Cash Flow Solutions Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13% Secured Debt (Maturity - April 17, 2017) |
|
5,000 |
|
4,811 |
|
4,811 |
|
|
|
|
|
|
Warrants (Fully diluted 7.5%) |
|
|
|
200 |
|
630 |
|
|
|
|
|
|
|
|
|
|
5,011 |
|
5,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo Composite Materials Holdings, LLC (10) |
|
Manufacturer of Fiberglass Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 23.1%) |
|
|
|
2,035 |
|
2,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condit Exhibits, LLC |
|
Tradeshow Exhibits / Custom Displays Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants (Fully diluted 15.0%) (8) |
|
|
|
100 |
|
610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Congruent Credit Opportunities Funds (12) (13) |
|
Investment Partnerships |
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%) (8) |
|
|
|
22,654 |
|
22,758 |
| |
|
|
|
|
|
LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%) |
|
|
|
3,743 |
|
3,743 |
|
|
|
|
|
|
|
|
|
|
26,397 |
|
26,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daseke, Inc. |
|
Specialty Transportation Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Current / 2.5% PIK Secured Debt (Maturity - July 31, 2018) |
|
20,332 |
|
19,968 |
|
19,968 |
|
|
|
|
|
|
Common Stock (Fully diluted 12.6%) |
|
|
|
4,642 |
|
11,690 |
|
|
|
|
|
|
|
|
|
|
24,610 |
|
31,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dos Rios Partners (12) (13) |
|
Investment Partnerships |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (Dos Rios Partners, LP) (Fully diluted 25.75%) |
|
|
|
1,269 |
|
1,269 |
|
|
|
|
|
|
LP Interests (Dos Rios Partners - A, LP) (Fully diluted 8.18%) |
|
|
|
403 |
|
403 |
|
|
|
|
|
|
|
|
|
|
1,672 |
|
1,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Teak Fine Hardwoods, Inc. |
|
Distributor of Hardwood Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock (Fully diluted 5.0%) |
|
|
|
480 |
|
810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freeport Financial SBIC Fund LP (12) (13) |
|
Investment Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (Fully diluted 9.9%) (8) |
|
|
|
3,333 |
|
3,333 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gault Financial, LLC (RMB Capital, LLC) |
|
Purchases and Manages Liquidation of Distressed Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6% Current / 11% PIK Secured Debt (Maturity - November 21, 2016) |
|
12,690 |
|
12,300 |
|
11,075 |
|
|
|
|
|
|
Warrants (Fully diluted 22.5%) |
|
|
|
400 |
|
— |
|
|
|
|
|
|
|
|
|
|
12,700 |
|
11,075 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Glowpoint, Inc. |
|
Provider of Cloud Managed Video Collaboration Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8% Secured Debt (Maturity - October 18, 2018) |
|
251 |
|
246 |
|
246 |
|
|
|
|
|
|
12% Secured Debt (Maturity - October 18, 2018) |
|
9,000 |
|
8,896 |
|
8,896 |
|
|
|
|
|
|
Common Stock (Fully diluted 21.8%) (GP Investment Holdings, LLC) |
|
|
|
3,958 |
|
12,955 |
|
|
|
|
|
|
|
|
|
|
13,100 |
|
22,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Houston Plating and Coatings, LLC |
|
Provider of Plating and Industrial Coating Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 10.9%) (8) |
|
|
|
635 |
|
9,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indianhead Pipeline Services, LLC |
|
Provider of Pipeline Support Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - February 6, 2017) |
|
7,575 |
|
7,202 |
|
7,575 |
|
|
|
|
|
|
Preferred Equity (8% cumulative) (8) |
|
|
|
1,871 |
|
1,871 |
|
|
|
|
|
|
Warrants (Fully diluted 10.6%) |
|
|
|
459 |
|
— |
|
|
|
|
|
|
Member Units (Fully diluted 12.1%) (8) |
|
|
|
1 |
|
— |
|
|
|
|
|
|
|
|
|
|
9,533 |
|
9,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Printing Solutions, LLC |
|
Specialty Card Printing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8% PIK Secured Debt (Maturity - January 31, 2014) (14) |
|
750 |
|
750 |
|
750 |
|
|
|
|
|
|
13% PIK Secured Debt (Maturity - September 23, 2016) (14) |
|
12,500 |
|
11,918 |
|
8,144 |
|
|
|
|
|
|
Preferred Equity (Fully diluted 11.0%) |
|
|
|
2,000 |
|
— |
|
|
|
|
|
|
Warrants (Fully diluted 8.0%) |
|
|
|
600 |
|
— |
|
|
|
|
|
|
|
|
|
|
15,268 |
|
8,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
irth Solutions, LLC |
|
Provider of Damage Prevention Information Technology Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 12.8%) (8) |
|
|
|
624 |
|
3,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KBK Industries, LLC |
|
Specialty Manufacturer of Oilfield and Industrial Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.5% Secured Debt (Maturity - September 28, 2017) |
|
8,500 |
|
8,435 |
|
8,500 |
|
|
|
|
|
|
Member Units (Fully diluted 17.5%) (8) |
|
|
|
341 |
|
5,740 |
|
|
|
|
|
|
|
|
|
|
8,776 |
|
14,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OnAsset Intelligence, Inc. |
|
Provider of Transportation Monitoring / Tracking Products and Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% PIK Secured Debt (Maturity - June 30, 2014) |
|
2,878 |
|
2,483 |
|
2,483 |
|
|
|
|
|
|
Preferred Stock (7% cumulative) (Fully diluted 3.3%) (8) |
|
|
|
1,847 |
|
2,635 |
|
|
|
|
|
|
Warrants (Fully diluted 16.6%) |
|
|
|
1,919 |
|
502 |
|
|
|
|
|
|
|
|
|
|
6,249 |
|
5,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPI International Ltd. (13) |
|
Provider of Man Camp and Industrial Storage Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity (Fully diluted 11.5%) |
|
|
|
1,371 |
|
4,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCI Holding Company, Inc. |
|
Manufacturer of Industrial Gas Generating Systems |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Current / 4% PIK Secured Debt (Maturity - December 18, 2017) |
|
4,241 |
|
4,176 |
|
4,241 |
|
|
|
|
|
|
Preferred Stock (20% cumulative) (Fully diluted 19.4%) (8) |
|
|
|
1,941 |
|
3,405 |
|
|
|
|
|
|
|
|
|
|
6,117 |
|
7,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quality Lease and Rental Holdings, LLC |
|
Provider of Rigsite Accommodation Unit Rentals and Related Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - January 8, 2018) (14) |
|
37,350 |
|
36,843 |
|
17,500 |
|
|
|
|
|
|
Preferred Member Units (Rocaciea, LLC) (Fully diluted 20.0%) |
|
|
|
2,500 |
|
— |
|
|
|
|
|
|
|
|
|
|
39,343 |
|
17,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radial Drilling Services Inc. |
|
Oil and Gas Technology Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - November 22, 2016) |
|
4,200 |
|
3,665 |
|
3,665 |
|
|
|
|
|
|
Warrants (Fully diluted 24.0%) |
|
|
|
758 |
|
— |
|
|
|
|
|
|
|
|
|
|
4,423 |
|
3,665 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Samba Holdings, Inc. |
|
Provider of Intelligent Driver Record Monitoring Software and Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.5% Secured Debt (Maturity - November 17, 2016) |
|
11,418 |
|
11,299 |
|
11,418 |
|
|
|
|
|
|
Common Stock (Fully diluted 19.4%) |
|
|
|
1,707 |
|
4,510 |
|
|
|
|
|
|
|
|
|
|
13,006 |
|
15,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectrio LLC |
|
Provider of Audio and Digital Messaging Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.50%, Current Coupon 8.50%, Secured Debt (Maturity - November 19, 2018) |
|
17,878 |
|
17,519 |
|
17,878 |
|
|
|
|
|
|
Warrants (Fully diluted 9.8%) |
|
|
|
887 |
|
3,850 |
|
|
|
|
|
|
|
|
|
|
18,406 |
|
21,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYNEO, LLC |
|
Manufacturer of Automation Machines, Specialty Cutting Tools and Punches |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - July 13, 2016) |
|
3,600 |
|
3,552 |
|
3,552 |
|
|
|
|
|
|
10% Secured Debt (Leadrock Properties, LLC) (Maturity - May 4, 2026) |
|
1,440 |
|
1,414 |
|
1,414 |
|
|
|
|
|
|
Member Units (Fully diluted 10.8%) |
|
|
|
1,036 |
|
740 |
|
|
|
|
|
|
|
|
|
|
6,002 |
|
5,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas Reexcavation LC |
|
Provider of Hydro Excavation Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Current / 3% PIK Secured Debt (Maturity - December 31, 2017) |
|
6,231 |
|
6,133 |
|
6,133 |
|
|
|
|
|
|
Class A Member Units (Fully diluted 17.4%) |
|
|
|
2,900 |
|
3,270 |
|
|
|
|
|
|
|
|
|
|
9,033 |
|
9,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tin Roof Acquisition Company |
|
Casual Restaurant Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - November 30, 2018) |
|
11,000 |
|
10,793 |
|
10,793 |
|
|
|
|
|
|
Class C Preferred Member Units (10% cumulative) (Fully diluted 10.0%) (8) |
|
|
|
2,078 |
|
2,078 |
|
|
|
|
|
|
|
|
|
|
12,871 |
|
12,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Affiliate Investments (20.1% of total investments at fair value) |
|
|
|
241,145 |
|
265,240 |
| ||||
MAIN STREET CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(in thousands)
(Unaudited)
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Non-Control/Non-Affiliate Investments (7) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABG Intermediate Holdings 2, LLC (11) |
|
Trademark Licensing of Clothing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - June 28, 2019) (9) |
|
7,481 |
|
7,445 |
|
7,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allflex Holdings III Inc. (11) |
|
Manufacturer of Livestock Identification Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.00%, Secured Debt (Maturity - July 19, 2021) (9) |
|
5,000 |
|
4,953 |
|
5,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alvogen Pharma US, Inc. (11) |
|
Pharmaceutical Company Focused on Generics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.75%, Current Coupon 7.00%, Secured Debt (Maturity - May 23, 2018) (9) |
|
1,961 |
|
1,934 |
|
1,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AM General LLC (11) |
|
Specialty Vehicle Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 9.00%, Current Coupon 10.25%, Secured Debt (Maturity - March 22, 2018) (9) |
|
2,775 |
|
2,705 |
|
2,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AM3 Pinnacle Corporation (10) |
|
Provider of Comprehensive Internet, TV and Voice Services for Multi-Dwelling Unit Properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10% Secured Debt (Maturity - October 22, 2018) |
|
22,420 |
|
22,248 |
|
22,248 |
|
|
|
|
|
|
Common Stock (Fully diluted 3.2%) |
|
|
|
2,000 |
|
2,000 |
|
|
|
|
|
|
|
|
|
|
24,248 |
|
24,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Beacon Advisors Inc. (11) |
|
Provider of Sub-Advised Investment Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 3.75%, Current Coupon 4.75%, Secured Debt (Maturity - November 22, 2019) (9) |
|
6,500 |
|
6,438 |
|
6,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmeriTech College, LLC |
|
For-Profit Nursing and Healthcare College |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18% Secured Debt (Maturity - March 9, 2017) |
|
6,050 |
|
5,965 |
|
6,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMF Bowling Centers, Inc. (11) |
|
Bowling Alley Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.50%, Current Coupon 8.75%, Secured Debt (Maturity - June 29, 2018) (9) |
|
4,906 |
|
4,773 |
|
5,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anchor Hocking, LLC (11) |
|
Household Products Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.50%, Secured Debt (Maturity - May 21, 2020) (9) |
|
6,948 |
|
6,885 |
|
7,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ancile Solutions, Inc. (11) |
|
Provider of eLearning Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - July 15, 2018) (9) |
|
9,506 |
|
9,453 |
|
9,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Answers Corporation (11) |
|
Consumer Internet Search Services Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.50%, Secured Debt (Maturity - December 20, 2018) (9) |
|
6,419 |
|
6,357 |
|
6,411 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
AP Gaming I, LLC (10) |
|
Developer, Manufacturer, and Operator of Gaming Machines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 8.25%, Current Coupon 9.25%, Secured Debt (Maturity - December 20, 2020) (9) |
|
6,983 |
|
6,778 |
|
6,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aptean, Inc. (11) |
|
Enterprise Application Software Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.25%, Current Coupon 5.25%, Secured Debt (Maturity - February 26, 2020) (9) |
|
4,750 |
|
4,703 |
|
4,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Artel, LLC (11) |
|
Land-Based and Commercial Satellite Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - November 27, 2017) (9) |
|
5,820 |
|
5,751 |
|
5,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ascend Learning, LLC (11) |
|
Technology-based Healthcare Learning Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - July 31, 2019) (9) |
|
4,250 |
|
4,229 |
|
4,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atkins Nutritionals Holdings II, Inc. (11) |
|
Weight Management Food Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - January 2, 2019) (9) |
|
1,985 |
|
1,985 |
|
2,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATS Workholding, Inc. (10) |
|
Manufacturer of Machine Cutting Tools and Accessories |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.00%, Secured Debt (Maturity - March 10, 2019) (9) |
|
6,028 |
|
5,966 |
|
5,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B. J. Alan Company |
|
Retailer and Distributor of Consumer Fireworks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.75% Current / 2.75% PIK Secured Debt (Maturity - June 22, 2017) |
|
10,487 |
|
10,420 |
|
10,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBTS Borrower LP (11) |
|
Oil & Gas Exploration and Midstream Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.50%, Current Coupon 7.75%, Secured Debt (Maturity - June 4, 2019) (9) |
|
6,948 |
|
6,886 |
|
7,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beers Enterprises, Inc. (10) |
|
Provider of Broadcast Video Transport Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Plus 6.50%, Current Coupon 9.75%, Secured Debt (Maturity - March 19, 2019) (9) |
|
4,421 |
|
4,360 |
|
4,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Blackhawk Specialty Tools LLC (11) |
|
Oilfield Equipment & Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.25%, Current Coupon 6.50%, Secured Debt (Maturity - August 1, 2019) (9) |
|
5,344 |
|
5,309 |
|
5,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bluestem Brands, Inc. (11) |
|
Multi-Channel Retailer of General Merchandise |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.50%, Current Coupon 7.50%, Secured Debt (Maturity - December 6, 2018) (9) |
|
3,556 |
|
3,488 |
|
3,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brasa Holdings Inc. (11) |
|
Upscale Full Service Restaurants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 5.75%, Secured Debt (Maturity - July 19, 2019) (9) |
|
3,456 |
|
3,383 |
|
3,476 |
|
|
|
|
|
|
LIBOR Plus 9.50%, Current Coupon 11.00%, Secured Debt (Maturity - January 20, 2020) (9) |
|
3,857 |
|
3,822 |
|
3,905 |
|
|
|
|
|
|
|
|
|
|
7,205 |
|
7,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California Pizza Kitchen, Inc. (11) |
|
Casual Dining Restaurant Chain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.25%, Current Coupon 5.25%, Secured Debt (Maturity - July 7, 2017) (9) |
|
6,500 |
|
6,298 |
|
6,305 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Calloway Laboratories, Inc. (10) |
|
Health Care Testing Facilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.00% PIK Secured Debt (Maturity - September 30, 2014) |
|
6,580 |
|
6,531 |
|
3,471 |
|
|
|
|
|
|
Warrants (Fully diluted 1.5%) |
|
|
|
17 |
|
— |
|
|
|
|
|
|
|
|
|
|
6,548 |
|
3,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cedar Bay Generation Company LP (11) |
|
Coal-Fired Cogeneration Plant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - April 23, 2020) (9) |
|
7,668 |
|
7,601 |
|
7,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charlotte Russe, Inc (11) |
|
Fast-Fashion Retailer to Young Women |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.75%, Secured Debt (Maturity - May 22, 2019) (9) |
|
4,975 |
|
4,931 |
|
4,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHI Overhead Doors, Inc. (11) |
|
Manufacturer of Overhead Garage Doors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 9.50%, Current Coupon 11.00%, Secured Debt (Maturity - September 18, 2019) (9) |
|
2,500 |
|
2,464 |
|
2,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Aerospace Manufacturing LLC (11) |
|
Aerospace Components Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.00%, Secured Debt (Maturity - February 28, 2020) (9) |
|
1,500 |
|
1,493 |
|
1,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compact Power Equipment, Inc. |
|
Equipment / Tool Rental |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6% Current / 6% PIK Secured Debt (Maturity - October 1, 2017) |
|
3,977 |
|
3,960 |
|
3,977 |
|
|
|
|
|
|
Series A Stock (8% cumulative) (Fully diluted 4.2%) (8) |
|
|
|
1,018 |
|
2,340 |
|
|
|
|
|
|
|
|
|
|
4,978 |
|
6,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CGSC of Delaware Holdings Corp. (11) (13) |
|
Insurance Brokerage Firm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.25%, Secured Debt (Maturity - October 16, 2020) (9) |
|
2,000 |
|
1,973 |
|
1,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CST Industries Inc. (11) |
|
Storage Tank Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.75%, Secured Debt (Maturity - May 22, 2017) (9) |
|
12,590 |
|
12,459 |
|
12,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling Info, Inc. |
|
Information Services for the Oil and Gas Industry |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock (Fully diluted 2.1%) |
|
|
|
1,335 |
|
9,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerald Performance Materials, Inc. (11) |
|
Specialty Chemicals Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.75%, Secured Debt (Maturity - May 18, 2018) (9) |
|
4,422 |
|
4,392 |
|
4,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EnCap Energy Fund Investments (12) (13) |
|
Investment Partnerships |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%) (8) |
|
|
|
3,171 |
|
3,388 |
|
|
|
|
|
|
LP Interests (EnCap Energy Capital Fund VIII Co- Investors, L.P.) (Fully diluted 0.3%) |
|
|
|
1,371 |
|
1,607 |
|
|
|
|
|
|
LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%) |
|
|
|
775 |
|
775 |
|
|
|
|
|
|
LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%) |
|
|
|
3,123 |
|
3,281 |
|
|
|
|
|
|
|
|
|
|
8,440 |
|
9,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
e-Rewards, Inc. (11) |
|
Provider of Digital Data Collection |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - October 29, 2018) (9) |
|
10,931 |
|
10,729 |
|
10,931 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Excelitas Technologies Corp. (11) |
|
Lighting and Sensor Components |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - November 2, 2020) (9) |
|
3,938 |
|
3,900 |
|
3,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fender Musical Instruments Corporation (11) |
|
Manufacturer of Musical Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.75%, Secured Debt (Maturity - April 3, 2019) (9) |
|
446 |
|
442 |
|
450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FC Operating, LLC (10) |
|
Christian Specialty Retail Stores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 10.75%, Current Coupon 12.00%, Secured Debt (Maturity - November 14, 2017) (9) |
|
5,400 |
|
5,316 |
|
5,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FishNet Security, Inc. (11) |
|
Information Technology Value-Added Reseller |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - November 30, 2017) (9) |
|
7,900 |
|
7,839 |
|
7,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fram Group Holdings, Inc. (11) |
|
Manufacturer of Automotive Maintenance Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.50%, Secured Debt (Maturity - July 31, 2017) (9) |
|
963 |
|
960 |
|
966 |
|
|
|
|
|
|
LIBOR Plus 9.00%, Current Coupon 10.50%, Secured Debt (Maturity - January 29, 2018) (9) |
|
1,000 |
|
997 |
|
945 |
|
|
|
|
|
|
|
|
|
|
1,957 |
|
1,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golden Nugget, Inc. (11) |
|
Owner & Operator of Hotels & Casinos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - November 21, 2019) (9) |
|
599 |
|
593 |
|
613 |
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - November 21, 2019) (9) |
|
1,397 |
|
1,383 |
|
1,431 |
|
|
|
|
|
|
|
|
|
|
1,976 |
|
2,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grupo Hima San Pablo, Inc. (11) |
|
Tertiary Care Hospitals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.50%, Secured Debt (Maturity - January 31, 2018) (9) |
|
4,950 |
|
4,869 |
|
4,703 |
|
|
|
|
|
|
13.75% Secured Debt (Maturity - July 31, 2018) |
|
2,000 |
|
1,914 |
|
1,900 |
|
|
|
|
|
|
|
|
|
|
6,783 |
|
6,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healogics, Inc. (11) |
|
Wound Care Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity (Fully diluted 0.02%) |
|
|
|
50 |
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iEnergizer Limited (11) (13) |
|
Provider of Business Outsourcing Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - May 1, 2019) (9) |
|
9,150 |
|
9,013 |
|
9,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inn of the Mountain Gods Resort and Casino (11) |
|
Hotel & Casino Owner & Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.25% Secured Debt (Maturity - November 30, 2020) |
|
3,851 |
|
3,673 |
|
3,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ipreo Holdings LLC (11) |
|
Application Software for Capital Markets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.00%, Secured Debt (Maturity - August 7, 2017) (9) |
|
2,622 |
|
2,622 |
|
2,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackson Hewitt Tax Service Inc. (11) |
|
Tax Preparation Service Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 8.50%, Current Coupon 10.00%, Secured Debt (Maturity - October 16, 2017) (9) |
|
4,509 |
|
4,372 |
|
4,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joerns Healthcare, LLC (11) |
|
Health Care Equipment & Supplies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.75%, Secured Debt (Maturity - March 28, 2018) (9) |
|
6,314 |
|
6,262 |
|
6,188 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Keypoint Government Solutions, Inc. (11) |
|
Pre-Employment Screening Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - November 13, 2017) (9) |
|
4,421 |
|
4,354 |
|
4,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Larchmont Resources, LLC (11) |
|
Oil & Gas Exploration & Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.25%, Current Coupon 8.50%, Secured Debt (Maturity - August 7, 2019) (9) |
|
6,965 |
|
6,901 |
|
7,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lansing Trade Group LLC (11) |
|
Commodity Merchandiser |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.25% Unsecured Debt (Maturity - February 15, 2019) |
|
6,000 |
|
6,000 |
|
6,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning Care Group (US) No. 2 Inc. (11) |
|
Provider of Early Childhood Education |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 6.00%, Secured Debt (Maturity - May 8, 2019) (9) |
|
5,473 |
|
5,425 |
|
5,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LJ Host Merger Sub, Inc. (11) |
|
Managed Services and Hosting Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 6.00%, Secured Debt (Maturity - December 23, 2019) (9) |
|
9,938 |
|
9,844 |
|
9,888 |
|
|
|
|
|
|
LIBOR Plus 8.75%, Current Coupon 10.00%, Secured Debt (Maturity - December 23, 2020) (9) |
|
5,000 |
|
4,905 |
|
4,975 |
|
|
|
|
|
|
|
|
|
|
14,749 |
|
14,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LKCM Distribution Holdings, L.P. |
|
Distributor of Industrial Process Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Current / 2.5% PIK Secured Debt (Maturity - December 23, 2018) |
|
16,500 |
|
16,342 |
|
16,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LKCM Headwater Investments I, L.P. (12) (13) |
|
Investment Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (Fully diluted 2.27%) (8) |
|
|
|
1,500 |
|
3,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAH Merger Corporation (11) |
|
Sports-Themed Casual Dining Chain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.75%, Secured Debt (Maturity - July 19, 2019) (9) |
|
7,313 |
|
7,244 |
|
7,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MediMedia USA, Inc. (11) |
|
Provider of Healthcare Media and Marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.75%, Current Coupon 8.00%, Secured Debt (Maturity - November 20, 2018) (9) |
|
5,459 |
|
5,318 |
|
5,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MedSolutions Holdings, Inc. (11) |
|
Specialty Benefit Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.25%, Current Coupon 6.50%, Secured Debt (Maturity - July 8, 2019) (9) |
|
3,850 |
|
3,815 |
|
3,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal Services LLC (11) |
|
Steel Mill Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - June 30, 2017) (9) |
|
5,300 |
|
5,300 |
|
5,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Milk Specialties Company (11) |
|
Processor of Nutrition Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.75%, Current Coupon 7.00%, Secured Debt (Maturity - November 9, 2018) (9) |
|
4,892 |
|
4,852 |
|
4,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Miramax Film NY, LLC (11) |
|
Motion Picture Producer and Distributor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Units (Fully diluted 0.2%) |
|
|
|
500 |
|
721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Modern VideoFilm, Inc. (10) |
|
Post-Production Film Studio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 3.50%, Current Coupon 5.00% / 8.50% PIK, Current Coupon Plus PIK 13.50%, Secured Debt (Maturity - September 25, 2017) (9) |
|
5,581 |
|
5,388 |
|
4,975 |
|
|
|
|
|
|
Warrants (Fully diluted 2.5%) |
|
|
|
151 |
|
1 |
|
|
|
|
|
|
|
|
|
|
5,539 |
|
4,976 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
MP Assets Corporation (11) |
|
Manufacturer of Battery Components |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - December 19, 2019) (9) |
|
4,554 |
|
4,510 |
|
4,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCP Investment Holdings, Inc. |
|
Management of Outpatient Cardiac Cath Labs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A and C Units (Fully diluted 2.9%) |
|
|
|
20 |
|
3,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGPL PipeCo, LLC (11) |
|
Natural Gas Pipelines and Storage Facilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.75%, Secured Debt (Maturity - September 15, 2017) (9) |
|
9,805 |
|
9,669 |
|
9,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nice-Pak Products, Inc. (11) |
|
Pre-Moistened Wipes Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.75%, Current Coupon 7.25%, Secured Debt (Maturity - June 18, 2014) (9) |
|
11,965 |
|
11,921 |
|
11,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Atlantic Trading Company, Inc. (11) |
|
Marketer/Distributor of Tobacco Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.50%, Current Coupon 7.75%, Secured Debt (Maturity - January 13, 2020) (9) |
|
7,981 |
|
7,903 |
|
8,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRC US Holding Company LLC (11) |
|
Environmental Services Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - July 30, 2019) (9) |
|
1,000 |
|
998 |
|
995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ospemifene Royalty Sub LLC (QuatRx) (10) |
|
Estrogen-Deficiency Drug Manufacturer and Distributor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.50% Secured Debt (Maturity - November 15, 2026) |
|
5,205 |
|
5,205 |
|
5,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panolam Industries International, Inc. (11) |
|
Decorative Laminate Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - August 23, 2017) (9) |
|
7,395 |
|
7,335 |
|
7,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian Holdings, Inc. (11) |
|
Storage Tank Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.50% Secured Bond (Maturity - January 15, 2018) |
|
3,150 |
|
3,118 |
|
3,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PeroxyChem LLC (11) |
|
Chemical Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.50%, Current Coupon 7.50%, Secured Debt (Maturity - February 28, 2020) (9) |
|
9,000 |
|
8,822 |
|
9,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Philadelphia Energy Solutions Refining and Marketing LLC (11) |
|
Oil & Gas Refiner |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - April 4, 2018) (9) |
|
2,978 |
|
2,941 |
|
2,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pitney Bowes Management Services Inc. (11) |
|
Provider of Document Management Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.50%, Secured Debt (Maturity - October 1, 2019) (9) |
|
5,970 |
|
5,914 |
|
6,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyconcept Financial B.V. (11) |
|
Promotional Products to Corporations and Consumers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 6.00%, Secured Debt (Maturity - June 28, 2019) (9) |
|
3,404 |
|
3,373 |
|
3,404 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Primesight Limited (10) (13) |
|
Outdoor Advertising Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.00% Secured Debt (Maturity - October 22, 2016) |
|
9,182 |
|
9,090 |
|
9,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prowler Acquisition Corp. (11) |
|
Specialty Distributor to the Energy Sector |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - January 28, 2020) (9) |
|
1,250 |
|
1,238 |
|
1,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PT Network, LLC (10) |
|
Provider of Outpatient Physical Therapy and Sports Medicine Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.50%, Secured Debt (Maturity - November 1, 2018) (9) |
|
8,788 |
|
8,695 |
|
8,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio One, Inc. (11) |
|
Radio Broadcasting |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.50%, Secured Debt (Maturity - March 31, 2016) (9) |
|
2,895 |
|
2,869 |
|
2,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ravago Holdings America, Inc. (11) |
|
Polymers Distributor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - December 20, 2020) (9) |
|
6,250 |
|
6,189 |
|
6,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded Books Inc. (11) |
|
Audiobook and Digital Content Publisher |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.25%, Current Coupon 5.25%, Secured Debt (Maturity - January 31, 2020) (9) |
|
12,500 |
|
12,376 |
|
12,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentpath, Inc. (11) |
|
Online Apartment Aggregator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - May 29, 2020) (9) |
|
6,874 |
|
6,707 |
|
6,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relativity Media, LLC (10) |
|
Full-scale Film and Television Production and Distribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.00% Secured Debt (Maturity - May 30, 2015) |
|
5,787 |
|
5,747 |
|
5,801 |
|
|
|
|
|
|
15.00% PIK Secured Debt (Maturity - May 30, 2015) |
|
6,612 |
|
6,457 |
|
6,745 |
|
|
|
|
|
|
Class A Units (Fully diluted 0.2%) |
|
|
|
292 |
|
1,588 |
|
|
|
|
|
|
|
|
|
|
12,496 |
|
14,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sabre Industries, Inc. (11) |
|
Manufacturer of Telecom Structures and Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 5.75%, Secured Debt (Maturity - August 24, 2018) (9) |
|
2,956 |
|
2,931 |
|
2,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAExploration, Inc. (10) (13) |
|
Geophysical Services Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.00% Current / 2.50% PIK Secured Debt (Maturity - November 28, 2016) |
|
8,125 |
|
8,216 |
|
8,125 |
|
|
|
|
|
|
Common Stock (Fully diluted 0.01%) (8) |
|
|
|
65 |
|
58 |
|
|
|
|
|
|
|
|
|
|
8,281 |
|
8,183 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
SCE Partners, LLC (10) |
|
Hotel & Casino Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.25%, Current Coupon 8.25%, Secured Debt (Maturity - August 14, 2019) (9) |
|
7,500 |
|
7,431 |
|
6,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sotera Defense Solutions, Inc. (11) |
|
Defense Industry Intelligence Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.50%, Secured Debt (Maturity - April 21, 2017) (9) |
|
11,586 |
|
11,062 |
|
10,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sutherland Global Services, Inc. (11) |
|
Business Process Outsourcing Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - March 6, 2019) (9) |
|
6,650 |
|
6,538 |
|
6,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Synagro Infrastructure |
|
Waste Management Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.25%, Current Coupon 6.25%, Secured Debt (Maturity - August 22, 2020) (9) |
|
6,965 |
|
6,836 |
|
7,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Targus Group International (11) |
|
Protective Cases for Mobile Devices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 9.50%, Current Coupon 11.00% / 1.00% PIK, Current Coupon Plus PIK 12.00%, Secured Debt (Maturity - May 24, 2016) (9) |
|
4,380 |
|
4,397 |
|
3,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technimark LLC (11) |
|
Injection Molding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.25%, Current Coupon 5.50%, Secured Debt (Maturity - April 17, 2019) (9) |
|
3,734 |
|
3,702 |
|
3,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TeleGuam Holdings, LLC (11) |
|
Cable and Telecom Services Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.25%, Secured Debt (Maturity - December 10, 2018) (9) |
|
8,869 |
|
8,839 |
|
8,846 |
|
|
|
|
|
|
LIBOR Plus 7.50%, Current Coupon 8.75%, Secured Debt (Maturity - June 10, 2019) (9) |
|
2,500 |
|
2,478 |
|
2,513 |
|
|
|
|
|
|
|
|
|
|
11,317 |
|
11,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Templar Energy LLC (11) |
|
Oil & Gas Exploration & Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.00%, Secured Debt (Maturity - November 25, 2020) (9) |
|
3,000 |
|
2,942 |
|
3,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tervita Corporation (11) (13) |
|
Oil and Gas Environmental Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - May 15, 2018) (9) |
|
5,460 |
|
5,416 |
|
5,424 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
The Tennis Channel, Inc. (10) |
|
Television-Based Sports Broadcasting |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants (Fully diluted 0.1%) |
|
|
|
235 |
|
301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Topps Company, Inc. (11) |
|
Trading Cards & Confectionary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - October 2, 2018) (9) |
|
1,995 |
|
1,977 |
|
2,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ThermaSys Corporation (11) |
|
Manufacturer of Industrial Heat Exchanges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.25%, Secured Debt (Maturity - May 3, 2019) (9) |
|
6,315 |
|
6,259 |
|
6,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Therakos, Inc. (11) |
|
Immune System Disease Treatment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.50%, Secured Debt (Maturity - December 27, 2017) (9) |
|
6,446 |
|
6,321 |
|
6,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totes Isotoner Corporation (11) |
|
Weather Accessory Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.75%, Current Coupon 7.25%, Secured Debt (Maturity - July 7, 2017) (9) |
|
4,257 |
|
4,213 |
|
4,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Travel Leaders Group, LLC (11) |
|
Travel Agency Network Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.00%, Secured Debt (Maturity - December 5, 2018) (9) |
|
10,381 |
|
10,217 |
|
10,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UniTek Global Services, Inc. (11) |
|
Provider of Outsourced Infrastructure Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 9.50%, Current Coupon 11.00% / 4.00% PIK, Current Coupon Plus PIK 15.00%, Secured Debt (Maturity - April 15, 2018) (9) |
|
10,110 |
|
9,452 |
|
10,212 |
|
|
|
|
|
|
Warrants (Fully diluted 1.4%) |
|
|
|
449 |
|
481 |
|
|
|
|
|
|
|
|
|
|
9,901 |
|
10,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Universal Fiber Systems, LLC (10) |
|
Manufacturer of Synthetic Fibers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.25%, Current Coupon 5.25%, Secured Debt (Maturity - January 31, 2019) (9) |
|
5,192 |
|
5,179 |
|
5,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Xpress Enterprises, Inc. (11) |
|
Truckload Carrier |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.88%, Current Coupon 9.38%, Secured Debt (Maturity - November 13, 2016) (9) |
|
6,001 |
|
5,916 |
|
5,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vantage Oncology, LLC (11) |
|
Outpatient Radiation Oncology Treatment Centers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.50% Secured Bond (Maturity - June 5, 2017) |
|
7,000 |
|
7,000 |
|
7,123 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Virtex Enterprises, LP (10) |
|
Specialty, Full-Service Provider of Complex Electronic Manufacturing Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.00% Secured Debt (Maturity - December 27, 2018) |
|
1,667 |
|
1,455 |
|
1,455 |
|
|
|
|
|
|
Preferred Class A Units (5% cumulative) (Fully diluted 1.4%) (8) |
|
|
|
331 |
|
331 |
|
|
|
|
|
|
Warrants (Fully diluted 1.1%) |
|
|
|
186 |
|
22 |
|
|
|
|
|
|
|
|
|
|
1,972 |
|
1,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Visant Corporation (11) |
|
School Affinity Stores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.25%, Secured Debt (Maturity - December 22, 2016) (9) |
|
3,882 |
|
3,882 |
|
3,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vision Solutions, Inc. (11) |
|
Provider of Information Availability Software |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 23, 2016) (9) |
|
2,147 |
|
2,052 |
|
2,169 |
|
|
|
|
|
|
LIBOR Plus 8.00%, Current Coupon 9.50%, Secured Debt (Maturity - July 23, 2017) (9) |
|
5,000 |
|
4,971 |
|
5,050 |
|
|
|
|
|
|
|
|
|
|
7,023 |
|
7,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Walker & Dunlop Inc. (11) (13) |
|
Real Estate Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - December 20, 2020) (9) |
|
4,239 |
|
4,198 |
|
4,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Dental Services, Inc. (11) |
|
Dental Care Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - November 1, 2018) (9) |
|
5,486 |
|
5,481 |
|
5,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wilton Brands LLC (11) |
|
Specialty Housewares Retailer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.50%, Secured Debt (Maturity - August 30, 2018) (9) |
|
1,850 |
|
1,821 |
|
1,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireco Worldgroup Inc. (11) |
|
Manufacturer of Synthetic Lifting Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 6.00%, Secured Debt (Maturity - February 15, 2017) (9) |
|
2,463 |
|
2,446 |
|
2,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YP Holdings LLC (11) |
|
Online and Offline Advertising Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.75%, Current Coupon 8.00%, Secured Debt (Maturity - June 4, 2018) (9) |
|
3,607 |
|
3,554 |
|
3,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zilliant Incorporated |
|
Price Optimization and Margin Management Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - June 15, 2017) |
|
8,000 |
|
7,107 |
|
7,107 |
|
|
|
|
|
|
Warrants (Fully diluted 2.7%) |
|
|
|
1,071 |
|
1,071 |
|
|
|
|
|
|
|
|
|
|
8,178 |
|
8,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Non-Control/Non-Affiliate Investments (51.4% of total investments at fair value) |
|
|
|
661,936 |
|
679,080 |
| ||||
|
|
|
|
|
|
|
|
| ||||
|
Total Portfolio Investments, March 31, 2014 |
|
|
|
1,178,775 |
|
1,308,879 |
| ||||
MAIN STREET CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(in thousands)
(Unaudited)
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
| ||
|
Marketable Securities and Idle Funds Investments |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
Investments in Marketable Securities and Diversified, Registered Bond Funds |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Other Marketable Securities and Idle Funds Investments (13) |
|
|
|
|
|
|
|
11,792 |
|
11,258 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Subtotal Marketable Securities and Idle Funds Investments (0.9% of total investments at fair value) |
|
|
11,792 |
|
11,258 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total Investments, March 31, 2014 |
|
|
|
|
|
|
|
$ |
1,190,567 |
|
$ |
1,320,137 |
|
(1) All investments are Lower Middle Market portfolio investments, unless otherwise noted.
(2) Debt investments are income producing, unless otherwise noted. Equity and warrants are non-income producing, unless otherwise noted.
(3) See Note C for summary geographic location of portfolio companies.
(4) Principal is net of prepayments. Cost is net of prepayments and accumulated unearned income.
(5) Control investments are defined by the Investment Company Act of 1940, as amended (“1940 Act”) as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
(6) Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% of the voting securities are owned and the investments are not classified as Control investments.
(7) Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(8) Income producing through dividends or distributions.
(9) Index based floating interest rate is subject to contractual minimum interest rate.
(10) Private Loans portfolio investment. See Note B for summary of Private Loan.
(11) Middle Market portfolio investment. See Note B for summary of Middle Market.
(12) Other Portfolio investment. See Note B for summary of Other Portfolio.
(13) Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.
(14) Non-accrual and non-income producing investment.
MAIN STREET CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2013
(in thousands)
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Control Investments (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC Interests, LLC |
|
Recreational and Educational Shooting Facility |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11% Secured Debt (Maturity - July 31, 2018) |
|
3,500 |
|
3,434 |
|
3,434 |
|
|
|
|
|
|
Member Units (Fully diluted 48.4%) |
|
|
|
1,500 |
|
1,500 |
|
|
|
|
|
|
|
|
|
|
4,934 |
|
4,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond-Coat, Inc. |
|
Casing and Tubing Coating Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - December 28, 2017) |
|
14,750 |
|
14,581 |
|
14,750 |
|
|
|
|
|
|
Common Stock (Fully diluted 42.9%) |
|
|
|
6,220 |
|
8,850 |
|
|
|
|
|
|
|
|
|
|
20,801 |
|
23,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Café Brazil, LLC |
|
Casual Restaurant Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 69.0%) (8) |
|
|
|
1,742 |
|
6,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California Healthcare Medical Billing, Inc. |
|
Outsourced Billing and Revenue Cycle Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - October 17, 2015) |
|
8,103 |
|
7,973 |
|
8,103 |
|
|
|
|
|
|
Warrants (Fully diluted 21.3%) |
|
|
|
1,193 |
|
3,380 |
|
|
|
|
|
|
Common Stock (Fully diluted 9.8%) |
|
|
|
1,177 |
|
1,560 |
|
|
|
|
|
|
|
|
|
|
10,343 |
|
13,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CBT Nuggets, LLC |
|
Produces and Sells IT Training Certification Videos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 41.6%) (8) |
|
|
|
1,300 |
|
16,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceres Management, LLC (Lambs) |
|
Aftermarket Automotive Services Chain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14% Secured Debt (Maturity - May 31, 2018) |
|
4,000 |
|
4,000 |
|
4,000 |
|
|
|
|
|
|
Class B Member Units (12% cumulative) (8) |
|
|
|
3,586 |
|
3,586 |
|
|
|
|
|
|
Member Units (Fully diluted 65.0%) |
|
|
|
5,273 |
|
1,190 |
|
|
|
|
|
|
9.5% Secured Debt (Lamb’s Real Estate Investment I, LLC) (Maturity - October 1, 2025) |
|
1,017 |
|
1,017 |
|
1,017 |
|
|
|
|
|
|
Member Units (Lamb’s Real Estate Investment I, LLC) (Fully diluted 100.0%) (8) |
|
|
|
625 |
|
1,060 |
|
|
|
|
|
|
|
|
|
|
14,501 |
|
10,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Garreco, LLC |
|
Manufacturer and Supplier of Dental Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14% Secured Debt (Maturity - January 12, 2018) |
|
5,800 |
|
5,693 |
|
5,693 |
|
|
|
|
|
|
Member Units (Fully diluted 32.0%) |
|
|
|
1,200 |
|
1,200 |
|
|
|
|
|
|
|
|
|
|
6,893 |
|
6,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Manufacturing, LLC |
|
Manufacturer of Specialty Fabricated Industrial Piping Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity - June 30, 2017) |
|
919 |
|
919 |
|
919 |
|
|
|
|
|
|
Member Units (Fully diluted 34.2%) (8) |
|
|
|
2,980 |
|
13,220 |
|
|
|
|
|
|
|
|
|
|
3,899 |
|
14,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harrison Hydra-Gen, Ltd. |
|
Manufacturer of Hydraulic Generators |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - June 4, 2015) |
|
4,896 |
|
4,659 |
|
4,896 |
|
|
|
|
|
|
Preferred Stock (8% cumulative) (8) |
|
|
|
1,167 |
|
1,167 |
|
|
|
|
|
|
Common Stock (Fully diluted 34.4%) |
|
|
|
718 |
|
1,340 |
|
|
|
|
|
|
|
|
|
|
6,544 |
|
7,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawthorne Customs and Dispatch |
|
Facilitator of Import Logistics, Brokerage, and Warehousing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 47.6%) (8) |
|
|
|
589 |
|
440 |
|
|
|
|
|
|
Member Units (Wallisville Real Estate, LLC) (Fully diluted 59.1%) (8) |
|
|
|
1,215 |
|
2,050 |
|
|
|
|
|
|
|
|
|
|
1,804 |
|
2,490 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Hydratec, Inc. |
|
Designer and Installer of Micro-Irrigation Systems |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock (Fully diluted 95.9%) (8) |
|
|
|
7,095 |
|
13,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDX Broker, LLC |
|
Provider of Marketing and CRM Tools for Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.5% Secured Debt (Maturity - November 18, 2018) |
|
10,571 |
|
10,467 |
|
10,467 |
|
|
|
|
|
|
Member Units (Fully diluted 63.9%) |
|
|
|
5,029 |
|
5,029 |
|
|
|
|
|
|
|
|
|
|
15,496 |
|
15,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact Telecom, Inc. |
|
Telecommunications Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 6.50%, Secured Debt (Maturity - May 31, 2018) (9) |
|
1,575 |
|
1,568 |
|
1,568 |
|
|
|
|
|
|
13% Secured Debt (Maturity - May 31, 2018) |
|
22,500 |
|
14,690 |
|
14,690 |
|
|
|
|
|
|
Warrants (Fully diluted 40.0%) |
|
|
|
8,000 |
|
8,760 |
|
|
|
|
|
|
|
|
|
|
24,258 |
|
25,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indianapolis Aviation Partners, LLC |
|
Fixed Base Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15% Secured Debt (Maturity - September 15, 2014) |
|
3,550 |
|
3,483 |
|
3,550 |
|
|
|
|
|
|
Warrants (Fully diluted 30.1%) |
|
|
|
1,129 |
|
2,200 |
|
|
|
|
|
|
|
|
|
|
4,612 |
|
5,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jensen Jewelers of Idaho, LLC |
|
Retail Jewelry Store |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Plus 6.75%, Current Coupon 10.00%, Secured Debt (Maturity - November 14, 2016) (9) |
|
4,255 |
|
4,193 |
|
4,255 |
|
|
|
|
|
|
Member Units (Fully diluted 60.8%) (8) |
|
|
|
811 |
|
3,310 |
|
|
|
|
|
|
|
|
|
|
5,004 |
|
7,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lighting Unlimited, LLC |
|
Commercial and Residential Lighting Products and Design Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8% Secured Debt (Maturity - August 22, 2014) |
|
1,676 |
|
1,676 |
|
1,676 |
|
|
|
|
|
|
Preferred Stock (non-voting) |
|
|
|
459 |
|
470 |
|
|
|
|
|
|
Warrants (Fully diluted 7.1%) |
|
|
|
54 |
|
30 |
|
|
|
|
|
|
Common Stock (Fully diluted 70.0%) |
|
|
|
100 |
|
250 |
|
|
|
|
|
|
|
|
|
|
2,289 |
|
2,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine Shelters Holdings, LLC |
|
Fabricator of Marine and Industrial Shelters |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - December 28, 2017) |
|
10,250 |
|
10,076 |
|
10,076 |
|
|
|
|
|
|
Preferred Stock (Fully diluted 26.7%) |
|
|
|
3,750 |
|
3,750 |
|
|
|
|
|
|
|
|
|
|
13,826 |
|
13,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Columbia Lumber Products, LLC
|
|
Manufacturer of Finger- Jointed Lumber Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10% Secured Debt (Maturity - December 18, 2017) |
|
1,750 |
|
1,750 |
|
1,750 |
|
|
|
|
|
|
12% Secured Debt (Maturity - December 18, 2017) |
|
3,900 |
|
3,900 |
|
3,900 |
|
|
|
|
|
|
9.5% Secured Debt (Mid - Columbia Real Estate, LLC) (Maturity - May 13, 2025) |
|
972 |
|
972 |
|
972 |
|
|
|
|
|
|
Member Units (Fully diluted 54.0%) (8) |
|
|
|
1,132 |
|
8,280 |
|
|
|
|
|
|
Member Units (Mid - Columbia Real Estate, LLC) (Fully diluted 50.0%) (8) |
|
|
|
250 |
|
440 |
|
|
|
|
|
|
|
|
|
|
8,004 |
|
15,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSC Adviser I, LLC |
|
Investment Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 100.0%) |
|
|
|
— |
|
1,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPCO Precast, LLC |
|
Precast Concrete Manufacturing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - September 1, 2015) (9) |
|
2,750 |
|
2,703 |
|
2,750 |
|
|
|
|
|
|
Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - February 1, 2016) (9) |
|
2,923 |
|
2,893 |
|
2,923 |
|
|
|
|
|
|
18% Secured Debt (Maturity - February 1, 2016) |
|
4,468 |
|
4,418 |
|
4,468 |
|
|
|
|
|
|
Member Units (Fully diluted 44.0%) (8) |
|
|
|
2,975 |
|
5,920 |
|
|
|
|
|
|
|
|
|
|
12,989 |
|
16,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRI Clinical Research, LLC |
|
Clinical Research Center |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14% Secured Debt (Maturity - September 8, 2016) |
|
4,394 |
|
4,226 |
|
4,226 |
|
|
|
|
|
|
Warrants (Fully diluted 12.5%) |
|
|
|
252 |
|
440 |
|
|
|
|
|
|
Member Units (Fully diluted 24.8%) |
|
|
|
500 |
|
870 |
|
|
|
|
|
|
|
|
|
|
4,978 |
|
5,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRP Jones, LLC |
|
Manufacturer of Hoses, Fittings and Assemblies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - December 22, 2016) |
|
12,100 |
|
11,382 |
|
12,100 |
|
|
|
|
|
|
Warrants (Fully diluted 12.2%) |
|
|
|
817 |
|
1,420 |
|
|
|
|
|
|
Member Units (Fully diluted 43.2%) (8) |
|
|
|
2,900 |
|
5,050 |
|
|
|
|
|
|
|
|
|
|
15,099 |
|
18,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OMi Holdings, Inc. |
|
Manufacturer of Overhead Cranes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock (Fully diluted 48.0%) (8) |
|
|
|
1,080 |
|
13,420 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Pegasus Research Group, LLC (Televerde) |
|
Telemarketing and Data Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15% Secured Debt (Maturity - January 6, 2016) |
|
4,791 |
|
4,760 |
|
4,791 |
|
|
|
|
|
|
Member Units (Fully diluted 43.7%) (8) |
|
|
|
1,250 |
|
4,860 |
|
|
|
|
|
|
|
|
|
|
6,010 |
|
9,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPL RVs, Inc. |
|
Recreational Vehicle Dealer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.1% Secured Debt (Maturity - June 10, 2015) |
|
7,860 |
|
7,827 |
|
7,860 |
|
|
|
|
|
|
Common Stock (Fully diluted 51.1%) |
|
|
|
2,150 |
|
7,990 |
|
|
|
|
|
|
|
|
|
|
9,977 |
|
15,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principle Environmental, LLC |
|
Noise Abatement Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - February 1, 2016) |
|
3,506 |
|
3,070 |
|
3,506 |
|
|
|
|
|
|
12% Current / 2% PIK Secured Debt (Maturity - February 1, 2016) |
|
4,674 |
|
4,617 |
|
4,656 |
|
|
|
|
|
|
Warrants (Fully diluted 14.6%) |
|
|
|
1,200 |
|
2,620 |
|
|
|
|
|
|
Member Units (Fully diluted 22.6%) (8) |
|
|
|
1,863 |
|
4,180 |
|
|
|
|
|
|
|
|
|
|
10,750 |
|
14,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
River Aggregates, LLC |
|
Processor of Construction Aggregates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - June 30, 2018) |
|
500 |
|
500 |
|
500 |
|
|
|
|
|
|
Zero Coupon Secured Debt (Maturity - June 30, 2018) |
|
750 |
|
421 |
|
421 |
|
|
|
|
|
|
Member Units (Fully diluted 38.3%) |
|
|
|
1,150 |
|
— |
|
|
|
|
|
|
Member Units (RA Properties, LLC) (Fully diluted 50.0%) |
|
|
|
369 |
|
369 |
|
|
|
|
|
|
|
|
|
|
2,440 |
|
1,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern RV, LLC |
|
Recreational Vehicle Dealer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13% Secured Debt (Maturity - August 8, 2018) |
|
11,400 |
|
11,239 |
|
11,239 |
|
|
|
|
|
|
Member Units (Fully diluted 50.2%) |
|
|
|
1,680 |
|
1,680 |
|
|
|
|
|
|
13% Secured Debt (Southern RV Real Estate, LLC) (Maturity - August 8, 2018) |
|
3,250 |
|
3,204 |
|
3,204 |
|
|
|
|
|
|
Member Units (Southern RV Real Estate, LLC) (Fully diluted 55.69%) |
|
|
|
480 |
|
480 |
|
|
|
|
|
|
|
|
|
|
16,603 |
|
16,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The MPI Group, LLC |
|
Manufacturer of Custom Hollow Metal Doors, Frames and Accessories |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.5% Current / 4.5% PIK Secured Debt (Maturity - July 1, 2014) |
|
1,079 |
|
1,079 |
|
880 |
|
|
|
|
|
|
6% Current / 6% PIK Secured Debt (Maturity - July 1, 2014) |
|
5,639 |
|
5,639 |
|
4,600 |
|
|
|
|
|
|
Warrants (Fully diluted 52.3%) |
|
|
|
1,096 |
|
— |
|
|
|
|
|
|
|
|
|
|
7,814 |
|
5,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Travis Acquisition LLC |
|
Manufacturer of Aluminum Trailers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - August 30, 2018) |
|
9,200 |
|
9,025 |
|
9,025 |
|
|
|
|
|
|
Member Units (Fully diluted 65.5%) |
|
|
|
7,100 |
|
7,100 |
|
|
|
|
|
|
|
|
|
|
16,125 |
|
16,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Uvalco Supply, LLC |
|
Farm and Ranch Supply Store |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9% Secured Debt (Maturity - January 1, 2019) |
|
2,175 |
|
2,175 |
|
2,175 |
|
|
|
|
|
|
Member Units (Fully diluted 42.8%) (8) |
|
|
|
1,113 |
|
3,730 |
|
|
|
|
|
|
|
|
|
|
3,288 |
|
5,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vision Interests, Inc. |
|
Manufacturer / Installer of Commercial Signage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13% Secured Debt (Maturity - December 23, 2016) |
|
3,204 |
|
3,158 |
|
3,158 |
|
|
|
|
|
|
Series A Preferred Stock (Fully diluted 50.9%) |
|
|
|
3,000 |
|
1,510 |
|
|
|
|
|
|
Common Stock (Fully diluted 19.1%) |
|
|
|
3,706 |
|
— |
|
|
|
|
|
|
|
|
|
|
9,864 |
|
4,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ziegler’s NYPD, LLC |
|
Casual Restaurant Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - October 1, 2018) (9) |
|
1,000 |
|
1,000 |
|
1,000 |
|
|
|
|
|
|
9% Current / 9% PIK Secured Debt (Maturity - October 1, 2018) |
|
5,449 |
|
5,449 |
|
4,820 |
|
|
|
|
|
|
Warrants (Fully diluted 46.6%) |
|
|
|
600 |
|
— |
|
|
|
|
|
|
|
|
|
|
7,049 |
|
5,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Control Investments (27.5% of total investments at fair value) |
277,411 |
|
356,973 |
| |||||||
MAIN STREET CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2013
(in thousands)
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Affiliate Investments (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Sensor Technologies, Inc. |
|
Manufacturer of Commercial / Industrial Sensors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants (Fully diluted 19.6%) |
|
|
|
50 |
|
10,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bridge Capital Solutions Corporation |
|
Financial Services and Cash Flow Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13% Secured Debt (Maturity - April 17, 2017) |
|
5,000 |
|
4,799 |
|
4,799 |
|
|
|
|
|
|
Warrants (Fully diluted 7.5%) |
|
|
|
200 |
|
530 |
|
|
|
|
|
|
|
|
|
|
4,999 |
|
5,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo Composite Materials Holdings, LLC |
|
Manufacturer of Fiberglass Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 23.1%) |
|
|
|
2,035 |
|
2,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condit Exhibits, LLC |
|
Tradeshow Exhibits / Custom Displays |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - July 31, 2018) |
|
3,750 |
|
3,750 |
|
3,750 |
|
|
|
|
|
|
Warrants (Fully diluted 15.0%) (8) |
|
|
|
100 |
|
540 |
|
|
|
|
|
|
|
|
|
|
3,850 |
|
4,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Congruent Credit Opportunities Funds (12) (13) |
|
Investment Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%) (8) |
|
|
|
22,060 |
|
22,692 |
|
|
|
|
|
|
LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%) |
|
|
|
4,128 |
|
4,128 |
|
|
|
|
|
|
|
|
|
|
26,188 |
|
26,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daseke, Inc. |
|
Specialty Transportation Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Current / 2.5% PIK Secured Debt (Maturity - July 31, 2018) |
|
20,206 |
|
19,828 |
|
19,828 |
|
|
|
|
|
|
Common Stock (Fully diluted 12.6%) |
|
|
|
4,642 |
|
11,689 |
|
|
|
|
|
|
|
|
|
|
24,470 |
|
31,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dos Rios Partners (12) (13) |
|
Investment Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (Dos Rios Partners, LP) (Fully diluted 27.69%) |
|
|
|
1,269 |
|
1,269 |
|
|
|
|
|
|
LP Interests (Dos Rios Partners - A, LP) (Fully diluted 9.14%) |
|
|
|
403 |
|
403 |
|
|
|
|
|
|
|
|
|
|
1,672 |
|
1,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Teak Fine Hardwoods, Inc. |
|
Hardwood Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock (Fully diluted 5.0%) |
|
|
|
480 |
|
450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freeport Financial SBIC Fund LP (12) (13) |
|
Investment Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (Fully diluted 9.9%) |
|
|
|
1,618 |
|
1,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gault Financial, LLC (RMB Capital, LLC) |
|
Purchases and Manages Liquidation of Distressed Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14% Secured Debt (Maturity - November 21, 2016) |
|
12,165 |
|
11,747 |
|
10,550 |
|
|
|
|
|
|
Warrants (Fully diluted 22.5%) |
|
|
|
400 |
|
— |
|
|
|
|
|
|
|
|
|
|
12,147 |
|
10,550 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Glowpoint, Inc. |
|
Cloud Managed Video Collaboration Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8% Secured Debt (Maturity - October 18, 2018) |
|
300 |
|
294 |
|
294 |
|
|
|
|
|
|
12% Secured Debt (Maturity - October 18, 2018) |
|
9,000 |
|
8,892 |
|
8,892 |
|
|
|
|
|
|
Common Stock (Fully diluted 21.8%) (GP Investment Holdings, LLC) |
|
|
|
3,800 |
|
10,235 |
|
|
|
|
|
|
|
|
|
|
12,986 |
|
19,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Houston Plating and Coatings, LLC |
|
Plating and Industrial Coating Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 11.1%) (8) |
|
|
|
635 |
|
9,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indianhead Pipeline Services, LLC |
|
Pipeline Support Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - February 6, 2017) |
|
7,800 |
|
7,394 |
|
7,800 |
|
|
|
|
|
|
Preferred Equity (8% cumulative) (8) |
|
|
|
1,832 |
|
1,832 |
|
|
|
|
|
|
Warrants (Fully diluted 10.6%) |
|
|
|
459 |
|
470 |
|
|
|
|
|
|
Member Units (Fully diluted 12.1%) (8) |
|
|
|
1 |
|
530 |
|
|
|
|
|
|
|
|
|
|
9,686 |
|
10,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Printing Solutions, LLC |
|
Specialty Card Printing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8% PIK Secured Debt (Maturity - January 31, 2014) (14) |
|
750 |
|
750 |
|
750 |
|
|
|
|
|
|
13% PIK Secured Debt (Maturity - September 23, 2016) (14) |
|
12,500 |
|
11,918 |
|
8,365 |
|
|
|
|
|
|
Preferred Equity (Fully diluted 11.0%) |
|
|
|
2,000 |
|
— |
|
|
|
|
|
|
Warrants (Fully diluted 8.0%) |
|
|
|
600 |
|
— |
|
|
|
|
|
|
|
|
|
|
15,268 |
|
9,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
irth Solutions, LLC |
|
Damage Prevention Technology Information Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member Units (Fully diluted 12.8%) (8) |
|
|
|
624 |
|
3,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KBK Industries, LLC |
|
Specialty Manufacturer of Oilfield and Industrial Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.5% Secured Debt (Maturity - September 28, 2017) |
|
9,000 |
|
8,927 |
|
9,000 |
|
|
|
|
|
|
Member Units (Fully diluted 17.5%) (8) |
|
|
|
341 |
|
5,740 |
|
|
|
|
|
|
|
|
|
|
9,268 |
|
14,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OnAsset Intelligence, Inc. |
|
Transportation Monitoring / Tracking Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% PIK Secured Debt (Maturity - June 30, 2014) |
|
2,330 |
|
1,788 |
|
1,788 |
|
|
|
|
|
|
Preferred Stock (7% cumulative) (Fully diluted 3.6%) (8) |
|
|
|
1,815 |
|
2,602 |
|
|
|
|
|
|
Warrants (Fully diluted 14.2%) |
|
|
|
1,787 |
|
370 |
|
|
|
|
|
|
|
|
|
|
5,390 |
|
4,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPI International Ltd. (13) |
|
Oil and Gas Construction Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity (Fully diluted 11.5%) |
|
|
|
1,371 |
|
4,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCI Holding Company, Inc. |
|
Manufacturer of Industrial Gas Generating Systems |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Current / 4% PIK Secured Debt (Maturity - December 18, 2017) |
|
4,449 |
|
4,376 |
|
4,449 |
|
|
|
|
|
|
Preferred Stock (20% cumulative) (Fully diluted 19.4%) (8) |
|
|
|
1,847 |
|
3,311 |
|
|
|
|
|
|
|
|
|
|
6,223 |
|
7,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quality Lease and Rental Holdings, LLC |
|
Rigsite Accommodation Unit Rental and Related Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - January 8, 2018) (14) |
|
37,350 |
|
36,843 |
|
20,000 |
|
|
|
|
|
|
Preferred Member Units (Rocaciea, LLC) (Fully diluted 20.0%) |
|
|
|
2,500 |
|
— |
|
|
|
|
|
|
|
|
|
|
39,343 |
|
20,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Radial Drilling Services Inc. |
|
Oil and Gas Technology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - November 22, 2016) |
|
4,200 |
|
3,626 |
|
3,626 |
|
|
|
|
|
|
Warrants (Fully diluted 24.0%) |
|
|
|
758 |
|
— |
|
|
|
|
|
|
|
|
|
|
4,384 |
|
3,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Samba Holdings, Inc. |
|
Intelligent Driver Record Monitoring Software and Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.5% Secured Debt (Maturity - November 17, 2016) |
|
11,453 |
|
11,325 |
|
11,453 |
|
|
|
|
|
|
Common Stock (Fully diluted 19.4%) |
|
|
|
1,707 |
|
4,510 |
|
|
|
|
|
|
|
|
|
|
13,032 |
|
15,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectrio LLC |
|
Audio Messaging Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.50%, Current Coupon 8.50%, Secured Debt (Maturity - November 19, 2018) |
|
17,878 |
|
17,504 |
|
17,878 |
|
|
|
|
|
|
Warrants (Fully diluted 9.8%) |
|
|
|
887 |
|
3,850 |
|
|
|
|
|
|
|
|
|
|
18,391 |
|
21,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYNEO, LLC |
|
Manufacturer of Specialty Cutting Tools and Punches |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - July 13, 2016) |
|
4,300 |
|
4,238 |
|
4,238 |
|
|
|
|
|
|
10% Secured Debt (Leadrock Properties, LLC) (Maturity - May 4, 2026) |
|
1,440 |
|
1,414 |
|
1,414 |
|
|
|
|
|
|
Member Units (Fully diluted 10.8%) |
|
|
|
1,036 |
|
740 |
|
|
|
|
|
|
|
|
|
|
6,688 |
|
6,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas Reexcavation LC |
|
Hydro Excavation Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Current / 3% PIK Secured Debt (Maturity - December 31, 2017) |
|
6,185 |
|
6,082 |
|
6,082 |
|
|
|
|
|
|
Class A Member Units (Fully diluted 16.3%) |
|
|
|
2,900 |
|
3,270 |
|
|
|
|
|
|
|
|
|
|
8,982 |
|
9,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tin Roof Acquisition Company |
|
Casual Restaurant Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - November 30, 2018) |
|
11,000 |
|
10,785 |
|
10,785 |
|
|
|
|
|
|
Class C Preferred Member Units (10% cumulative) (Fully diluted 10.0%) (8) |
|
|
|
2,027 |
|
2,027 |
|
|
|
|
|
|
|
|
|
|
12,812 |
|
12,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Affiliate Investments (20.6% of total investments at fair value) |
|
|
|
242,592 |
|
268,113 |
| ||||
MAIN STREET CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2013
(in thousands)
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Non-Control/Non-Affiliate Investments (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABG Intermediate Holdings 2, LLC (11) |
|
Trademark Licensing of Clothing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - June 28, 2019) (9) |
|
7,500 |
|
7,463 |
|
7,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allflex Holdings III Inc. (11) |
|
Manufacturer of Livestock Identification Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.00%, Secured Debt (Maturity - July 19, 2021) (9) |
|
5,000 |
|
4,952 |
|
5,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alvogen Pharma US, Inc. (11) |
|
Pharmaceutical Company Focused on Generics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.75%, Current Coupon 7.00%, Secured Debt (Maturity - May 23, 2018) (9) |
|
1,966 |
|
1,938 |
|
1,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AM General LLC (11) |
|
Specialty Vehicle Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 9.00%, Current Coupon 10.25%, Secured Debt (Maturity - March 22, 2018) (9) |
|
2,850 |
|
2,775 |
|
2,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AM3 Pinnacle Corporation |
|
Provider of Comprehensive Internet, TV and Voice Services for Multi-Dwelling Unit Properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10% Secured Debt (Maturity - October 22, 2018) |
|
22,500 |
|
22,320 |
|
22,320 |
|
|
|
|
|
|
Common Stock (Fully diluted 3.2%) |
|
|
|
2,000 |
|
2,000 |
|
|
|
|
|
|
|
|
|
|
24,320 |
|
24,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Beacon Advisors Inc. (11) |
|
Provider of Sub-Advised Investment Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 3.75%, Current Coupon 4.75%, Secured Debt (Maturity - November 22, 2019) (9) |
|
6,500 |
|
6,436 |
|
6,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmeriTech College, LLC |
|
For-Profit Nursing and Healthcare College |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18% Secured Debt (Maturity - March 9, 2017) |
|
6,050 |
|
5,960 |
|
6,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMF Bowling Centers, Inc. (11) |
|
Bowling Alley Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.50%, Current Coupon 8.75%, Secured Debt (Maturity - June 29, 2018) (9) |
|
4,938 |
|
4,799 |
|
4,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anchor Hocking, LLC (11) |
|
Household Products Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.50%, Secured Debt (Maturity - May 21, 2020) (9) |
|
6,965 |
|
6,900 |
|
7,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ancile Solutions, Inc. (11) |
|
Provider of eLearning Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - July 15, 2018) (9) |
|
9,628 |
|
9,571 |
|
9,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Answers Corporation (11) |
|
Consumer Internet Search Services Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.50%, Secured Debt (Maturity - December 20, 2018) (9) |
|
8,500 |
|
8,415 |
|
8,436 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
AP Gaming I, LLC |
|
Developer, Manufacturer, and Operator of Gaming Machines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 8.25%, Current Coupon 9.25%, Secured Debt (Maturity - December 20, 2020) (9) |
|
7,000 |
|
6,790 |
|
6,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apria Healthcare Group, Inc. (11) |
|
Provider of Home Healthcare Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.75%, Secured Debt (Maturity - April 6, 2020) (9) |
|
5,473 |
|
5,441 |
|
5,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Artel, LLC (11) |
|
Land-Based and Commercial Satellite Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - November 27, 2017) (9) |
|
5,953 |
|
5,878 |
|
5,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atkins Nutritionals Holdings II, Inc. (11) |
|
Weight Management Food Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - January 2, 2019) (9) |
|
1,985 |
|
1,985 |
|
2,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B. J. Alan Company |
|
Retailer and Distributor of Consumer Fireworks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.5% Current / 2.5% PIK Secured Debt (Maturity - June 22, 2017) |
|
11,235 |
|
11,158 |
|
11,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBTS Borrower LP (11) |
|
Oil & Gas Exploration and Midstream Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.50%, Current Coupon 7.75%, Secured Debt (Maturity - June 4, 2019) (9) |
|
6,948 |
|
6,883 |
|
7,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Blackhawk Specialty Tools LLC (11) |
|
Oilfield Equipment & Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.25%, Current Coupon 6.50%, Secured Debt (Maturity - August 1, 2019) (9) |
|
5,413 |
|
5,375 |
|
5,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bluestem Brands, Inc. (11) |
|
Multi-Channel Retailer of General Merchandise |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.50%, Current Coupon 7.50%, Secured Debt (Maturity - December 6, 2018) (9) |
|
4,000 |
|
3,921 |
|
3,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand Connections, LLC |
|
Venue-Based Marketing and Media |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - April 30, 2015) |
|
7,063 |
|
6,983 |
|
7,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brasa Holdings, Inc. (11) |
|
Upscale Full Service Restaurants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 5.75%, Secured Debt (Maturity - July 19, 2019) (9) |
|
3,456 |
|
3,379 |
|
3,498 |
|
|
|
|
|
|
LIBOR Plus 9.50%, Current Coupon 11.00%, Secured Debt (Maturity - January 20, 2020) (9) |
|
3,857 |
|
3,820 |
|
3,896 |
|
|
|
|
|
|
|
|
|
|
7,199 |
|
7,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calloway Laboratories, Inc. (10) |
|
Health Care Testing Facilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.00% PIK Secured Debt (Maturity - September 30, 2014) |
|
6,336 |
|
6,276 |
|
4,738 |
|
|
|
|
|
|
Warrants (Fully diluted 1.5%) |
|
|
|
17 |
|
— |
|
|
|
|
|
|
|
|
|
|
6,293 |
|
4,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDC Software Corporation (11) |
|
Enterprise Application Software |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.50%, Secured Debt (Maturity - August 6, 2018) (9) |
|
4,197 |
|
4,163 |
|
4,244 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Cedar Bay Generation Company LP (11) |
|
Coal-Fired Cogeneration Plant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - April 23, 2020) (9) |
|
7,964 |
|
7,891 |
|
8,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charlotte Russe, Inc. (11) |
|
Fast-Fashion Retailer to Young Women |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.75%, Secured Debt (Maturity - May 22, 2019) (9) |
|
4,988 |
|
4,942 |
|
4,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHI Overhead Doors, Inc. (11) |
|
Manufacturer of Overhead Garage Doors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 9.50%, Current Coupon 11.00%, Secured Debt (Maturity - September 18, 2019) (9) |
|
2,500 |
|
2,462 |
|
2,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collective Brands Finance, Inc. (11) |
|
Specialty Footwear Retailer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - October 9, 2019) (9) |
|
2,481 |
|
2,481 |
|
2,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compact Power Equipment, Inc. |
|
Equipment / Tool Rental |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6% Current / 6% PIK Secured Debt (Maturity - October 1, 2017) |
|
3,918 |
|
3,901 |
|
3,918 |
|
|
|
|
|
|
Series A Stock (8% cumulative) (Fully diluted 4.2%) (8) |
|
|
|
998 |
|
2,230 |
|
|
|
|
|
|
|
|
|
|
4,899 |
|
6,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CGSC of Delaware Holdings Corp. (11) (13) |
|
Insurance Brokerage Firm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.25%, Secured Debt (Maturity - October 16, 2020) (9) |
|
2,000 |
|
1,972 |
|
1,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Connolly Holdings, Inc. (11) |
|
Audit Recovery Software |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.25%, Current Coupon 6.50%, Secured Debt (Maturity - July 13, 2018) (9) |
|
2,395 |
|
2,376 |
|
2,405 |
|
|
|
|
|
|
LIBOR Plus 9.25%, Current Coupon 10.50%, Secured Debt (Maturity - January 15, 2019) (9) |
|
2,000 |
|
1,967 |
|
2,045 |
|
|
|
|
|
|
|
|
|
|
4,343 |
|
4,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CST Industries (11) |
|
Storage Tank Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.75%, Secured Debt (Maturity - May 22, 2017) (9) |
|
11,563 |
|
11,436 |
|
11,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling Info, Inc. |
|
Information Services for the Oil and Gas Industry |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock (Fully diluted 2.1%) |
|
|
|
1,335 |
|
9,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerald Performance Materials, Inc. (11) |
|
Specialty Chemicals Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.75%, Secured Debt (Maturity - May 18, 2018) (9) |
|
4,434 |
|
4,401 |
|
4,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EnCap Energy Fund Investments (12) (13) |
|
Investment Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%) (8) |
|
|
|
2,868 |
|
2,985 |
|
|
|
|
|
|
LP Interests (EnCap Energy Capital Fund VIII Co- Investors, L.P.) (Fully diluted 0.3%) |
|
|
|
1,192 |
|
1,301 |
|
|
|
|
|
|
LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%) |
|
|
|
646 |
|
646 |
|
|
|
|
|
|
LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%) |
|
|
|
2,723 |
|
2,723 |
|
|
|
|
|
|
|
|
|
|
7,429 |
|
7,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
e-Rewards, Inc. (11) |
|
Provider of Digital Data Collection |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - October 29, 2018) (9) |
|
11,000 |
|
10,786 |
|
10,931 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Excelitas Technologies Corp. (11) |
|
Lighting and Sensor Components |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - November 2, 2020) (9) |
|
3,958 |
|
3,919 |
|
3,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fender Musical Instruments Corporation (11) |
|
Manufacturer of Musical Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.75%, Secured Debt (Maturity - April 3, 2019) (9) |
|
448 |
|
443 |
|
455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FC Operating, LLC (10) |
|
Christian Specialty Retail Stores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 10.75%, Current Coupon 12.00%, Secured Debt (Maturity - November 14, 2017) (9) |
|
5,550 |
|
5,459 |
|
5,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FishNet Security, Inc. (11) |
|
Information Technology Value-Added Reseller |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - November 30, 2017) (9) |
|
7,920 |
|
7,856 |
|
7,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fram Group Holdings, Inc. (11) |
|
Manufacturer of Automotive Maintenance Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.50%, Secured Debt (Maturity - July 31, 2017) (9) |
|
964 |
|
961 |
|
958 |
|
|
|
|
|
|
LIBOR Plus 9.00%, Current Coupon 10.50%, Secured Debt (Maturity - January 29, 2018) (9) |
|
1,000 |
|
996 |
|
953 |
|
|
|
|
|
|
|
|
|
|
1,957 |
|
1,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gastar Exploration USA, Inc. (11) |
|
Oil & Gas Exploration & Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.63% Secured Bond (Maturity - May 15, 2018) |
|
1,000 |
|
1,000 |
|
983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Getty Images, Inc. (11) |
|
Digital Photography and Video Content Marketplace |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 3.50%, Current Coupon 4.75%, Secured Debt (Maturity - October 18, 2019) (9) |
|
4,987 |
|
4,501 |
|
4,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golden Nugget, Inc. (11) |
|
Owner & Operator of Hotels & Casinos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - November 21, 2019) (9) |
|
1,400 |
|
1,380 |
|
1,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grupo Hima San Pablo, Inc. (11) |
|
Tertiary Care Hospitals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.50%, Secured Debt (Maturity - January 31, 2018) (9) |
|
4,963 |
|
4,877 |
|
4,714 |
|
|
|
|
|
|
13.75% Secured Debt (Maturity - July 31, 2018) |
|
2,000 |
|
1,911 |
|
1,900 |
|
|
|
|
|
|
|
|
|
|
6,788 |
|
6,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healogics, Inc. (11) |
|
Wound Care Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity (Fully diluted 0.02%) (8) |
|
|
|
50 |
|
50 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
iEnergizer Limited (11) |
|
Provider of Business Outsourcing Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - May 1, 2019) (9) |
|
8,150 |
|
8,020 |
|
8,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inn of the Mountain Gods Resort and Casino (11) |
|
Hotel & Casino |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.25% Secured Debt (Maturity - November 30, 2020) |
|
4,096 |
|
3,901 |
|
3,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ipreo Holdings LLC (11) |
|
Application Software for Capital Markets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.00%, Secured Debt (Maturity - August 5, 2017) (9) |
|
5,637 |
|
5,630 |
|
5,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ivy Hill Middle Market Credit Fund III, Ltd. (12) (13) |
|
Investment Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.50%, Current Coupon 6.78%, Secured Debt (Maturity - January 15, 2022) |
|
2,000 |
|
1,704 |
|
2,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackson Hewitt Tax Services, Inc. (11) |
|
Tax Preparation Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 8.50%, Current Coupon 10.00%, Secured Debt (Maturity - October 16, 2017) (9) |
|
4,844 |
|
4,688 |
|
4,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joerns Healthcare, LLC (11) |
|
Health Care Equipment & Supplies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - March 28, 2018) (9) |
|
6,451 |
|
6,395 |
|
6,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Keypoint Government Solutions, Inc. (11) |
|
Pre-Employment Screening Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - November 13, 2017) (9) |
|
4,483 |
|
4,411 |
|
4,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Larchmont Resources, LLC (11) |
|
Oil & Gas Exploration & Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.25%, Current Coupon 8.50%, Secured Debt (Maturity - August 7, 2019) (9) |
|
6,965 |
|
6,899 |
|
7,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning Care Group (US) No. 2 Inc. (11) |
|
Provider of Early Childhood Education |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 6.00%, Secured Debt (Maturity - May 8, 2019) (9) |
|
5,486 |
|
5,436 |
|
5,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LJ Host Merger Sub, Inc. (11) |
|
Managed Services and Hosting Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 6.00%, Secured Debt (Maturity - December 23, 2019) (9) |
|
10,000 |
|
9,901 |
|
9,950 |
|
|
|
|
|
|
LIBOR Plus 8.75%, Current Coupon 10.00%, Secured Debt (Maturity - December 23, 2020) (9) |
|
5,000 |
|
4,901 |
|
4,975 |
|
|
|
|
|
|
|
|
|
|
14,802 |
|
14,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LKCM Distribution Holdings, L.P. |
|
Distributor of Industrial Process Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Current / 2.5% PIK Secured Debt (Maturity - December 23, 2018) |
|
16,506 |
|
16,342 |
|
16,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LKCM Headwater Investments I, L.P. (12) (13) |
|
Investment Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LP Interests (Fully diluted 2.27%) (8) |
|
|
|
1,500 |
|
3,033 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
MAH Merger Corporation (11) |
|
Sports-Themed Casual Dining Chain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.75%, Secured Debt (Maturity - July 19, 2019) (9) |
|
7,350 |
|
7,277 |
|
7,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media Holdings, LLC (11) |
|
Internet Traffic Generator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14% Secured Debt (Maturity - October 18, 2018) |
|
5,894 |
|
5,781 |
|
5,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MediMedia USA, Inc. (11) |
|
Provider of Healthcare Media and Marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.75%, Current Coupon 8.00%, Secured Debt (Maturity - November 20, 2018) (9) |
|
5,473 |
|
5,339 |
|
5,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medpace Intermediateco, Inc. (11) |
|
Clinical Trial Development and Execution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.25%, Secured Debt (Maturity - June 19, 2017) (9) |
|
2,924 |
|
2,896 |
|
2,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MedSolutions Holdings, Inc. (11) |
|
Specialty Benefit Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.25%, Current Coupon 6.50%, Secured Debt (Maturity - July 8, 2019) (9) |
|
3,900 |
|
3,864 |
|
3,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal Services LLC (11) |
|
Steel Mill Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.00%, Secured Debt (Maturity - June 30, 2017) (9) |
|
5,313 |
|
5,313 |
|
5,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Milk Specialties Company (11) |
|
Processor of Nutrition Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.75%, Current Coupon 7.00%, Secured Debt (Maturity - November 9, 2018) (9) |
|
4,905 |
|
4,863 |
|
4,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Miramax Film NY, LLC (11) |
|
Motion Picture Producer and Distributor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Units (Fully diluted 0.2%) |
|
|
|
500 |
|
871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Modern VideoFilm, Inc. (10) |
|
Post-Production Film Studio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 3.50%, Current Coupon 5.00% / 8.50% PIK, Current Coupon Plus PIK 13.50%, Secured Debt (Maturity - December 19, 2017) (9) |
|
5,397 |
|
5,198 |
|
4,749 |
|
|
|
|
|
|
Warrants (Fully diluted 2.5%) |
|
|
|
151 |
|
1 |
|
|
|
|
|
|
|
|
|
|
5,349 |
|
4,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MP Assets Corporation (11) |
|
Manufacturer of Battery Components |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - December 19, 2019) (9) |
|
4,600 |
|
4,554 |
|
4,589 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
National Vision, Inc. (11) |
|
Discount Optical Retailer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.75%, Current Coupon 7.00%, Secured Debt (Maturity - August 2, 2018) (9) |
|
3,163 |
|
3,125 |
|
3,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCP Investment Holdings, Inc. |
|
Management of Outpatient Cardiac Cath Labs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A and C Units (Fully diluted 3.3%) |
|
|
|
20 |
|
3,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGPL PipeCo, LLC (11) |
|
Natural Gas Pipelines and Storage Facilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.50%, Current Coupon 6.75%, Secured Debt (Maturity - September 15, 2017) (9) |
|
9,805 |
|
9,660 |
|
9,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nice-Pak Products, Inc. (11) |
|
Pre-Moistened Wipes Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.50%, Current Coupon 8.00%, Secured Debt (Maturity - June 18, 2014) (9) |
|
5,701 |
|
5,650 |
|
5,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American Breweries Holdings, LLC (11) |
|
Operator of Specialty Breweries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.50%, Secured Debt (Maturity - December 11, 2018) (9) |
|
3,960 |
|
3,892 |
|
3,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRC US Holding Company LLC (11) |
|
Environmental Services Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - July 30, 2019) (9) |
|
3,413 |
|
3,396 |
|
3,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuverra Environmental Solutions, Inc. (11) |
|
Water Treatment and Disposal Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.88% Unsecured Bond (Maturity - April 15, 2018) |
|
3,500 |
|
3,500 |
|
3,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ospemifene Royalty Sub LLC (QuatRx) (10) |
|
Estrogen-Deficiency Drug Manufacturer and Distributor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.50% Secured Debt (Maturity - November 15, 2026) |
|
5,000 |
|
5,000 |
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panolam Industries International, Inc. (11) |
|
Decorative Laminate Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - August 23, 2017) (9) |
|
7,499 |
|
7,435 |
|
7,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian Holdings, Inc. (11) |
|
Storage Tank Manufacturer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.50% Secured Bond (Maturity - January 15, 2018) |
|
3,150 |
|
3,116 |
|
3,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Philadelphia Energy Solutions Refining and Marketing LLC (11) |
|
Oil & Gas Refiner |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - April 4, 2018) (9) |
|
2,978 |
|
2,939 |
|
2,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pitney Bowes Management Services Inc. (11) |
|
Provider of Document Management Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.50%, Secured Debt (Maturity - October 1, 2019) (9) |
|
5,985 |
|
5,927 |
|
6,030 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Polyconcept Financial B.V. (11) |
|
Promotional Products to Corporations and Consumers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 6.00%, Secured Debt (Maturity - June 28, 2019) (9) |
|
3,413 |
|
3,381 |
|
3,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primesight Limited (10) |
|
Outdoor Advertising Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.25% Secured Debt (Maturity - October 17, 2015) |
|
7,378 |
|
7,378 |
|
8,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PT Network, LLC (10) |
|
Provider of Outpatient Physical Therapy and Sports Medicine Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.50%, Secured Debt (Maturity - November 1, 2018) (9) |
|
8,597 |
|
8,499 |
|
8,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio One, Inc. (11) |
|
Radio Broadcasting |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.50%, Secured Debt (Maturity - March 31, 2016) (9) |
|
2,902 |
|
2,873 |
|
2,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ravago Holdings America Inc (11) |
|
Polymers Distributor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - December 20, 2020) (9) |
|
6,250 |
|
6,188 |
|
6,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relativity Media, LLC (10) |
|
Full-scale Film and Television Production and Distribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.00% Secured Debt (Maturity - May 24, 2015) |
|
5,787 |
|
5,739 |
|
6,026 |
|
|
|
|
|
|
15.00% PIK Secured Debt (Maturity - May 24, 2015) |
|
6,370 |
|
6,189 |
|
6,449 |
|
|
|
|
|
|
Class A Units (Fully diluted 0.2%) |
|
|
|
292 |
|
1,521 |
|
|
|
|
|
|
|
|
|
|
12,220 |
|
13,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sabre Industries, Inc. (11) |
|
Manufacturer of Telecom Structures and Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 5.75%, Secured Debt (Maturity - August 24, 2018) (9) |
|
2,975 |
|
2,948 |
|
2,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAExploration, Inc. |
|
Geophysical Services Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.00% Current / 2.50% PIK Secured Debt (Maturity - November 28, 2016) |
|
8,075 |
|
8,173 |
|
8,075 |
|
|
|
|
|
|
Common Stock (Fully diluted 0.01%) (8) |
|
|
|
65 |
|
55 |
|
|
|
|
|
|
|
|
|
|
8,238 |
|
8,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCE Partners, LLC (10) |
|
Hotel & Casino Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.25%, Current Coupon 8.25%, Secured Debt (Maturity - August 8, 2019) (9) |
|
7,500 |
|
7,429 |
|
6,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sotera Defense Solutions, Inc. (11) |
|
Defense Industry Intelligence Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.50%, Secured Debt (Maturity - April 21, 2017) (9) |
|
11,651 |
|
11,086 |
|
10,486 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Sourcehov LLC (11) |
|
Business Process Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.50%, Current Coupon 8.75%, Secured Debt (Maturity - April 30, 2019) (9) |
|
1,500 |
|
1,486 |
|
1,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sutherland Global Services (11) |
|
Business Process Outsourcing Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - March 6, 2019) (9) |
|
6,738 |
|
6,619 |
|
6,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Synagro Infrastructure Company, Inc (11) |
|
Waste Management Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.25%, Current Coupon 6.25%, Secured Debt (Maturity - August 22, 2020) (9) |
|
6,983 |
|
6,849 |
|
6,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Targus Group International (11) |
|
Protective Cases for Mobile Devices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 9.50%, Current Coupon 11.00% / 1.00% PIK, Current Coupon Plus PIK 12.00%, Secured Debt (Maturity - May 24, 2016) (9) |
|
4,426 |
|
4,445 |
|
3,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technimark LLC (11) |
|
Injection Molding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.25%, Current Coupon 5.50%, Secured Debt (Maturity - April 17, 2019) (9) |
|
3,734 |
|
3,701 |
|
3,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TeleGuam Holdings, LLC (11) |
|
Cable and Telecom Services Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.25%, Secured Debt (Maturity - December 10, 2018) (9) |
|
6,965 |
|
6,933 |
|
6,948 |
|
|
|
|
|
|
LIBOR Plus 7.50%, Current Coupon 8.75%, Secured Debt (Maturity - June 10, 2019) (9) |
|
2,500 |
|
2,477 |
|
2,513 |
|
|
|
|
|
|
|
|
|
|
9,410 |
|
9,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Templar Energy LLC (11) |
|
Oil & Gas Exploration & Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.00%, Secured Debt (Maturity - November 25, 2020) (9) |
|
3,000 |
|
2,941 |
|
3,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tervita Corporation (11) |
|
Oil and Gas Environmental Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.00%, Current Coupon 6.25%, Secured Debt (Maturity - May 15, 2018) (9) |
|
5,474 |
|
5,427 |
|
5,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Tennis Channel, Inc. |
|
Television-Based Sports Broadcasting |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants (Fully diluted 0.1%) |
|
|
|
235 |
|
301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Topps Company, Inc. (11) |
|
Trading Cards & Confectionary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.25%, Secured Debt (Maturity - October 2, 2018) (9) |
|
2,000 |
|
1,981 |
|
2,005 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
ThermaSys Corporation (11) |
|
Manufacturer of Industrial Heat Exchanges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.25%, Secured Debt (Maturity - May 3, 2019) (9) |
|
6,395 |
|
6,336 |
|
6,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Therakos, Inc. (11) |
|
Immune System Disease Treatment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.50%, Secured Debt (Maturity - December 27, 2017) (9) |
|
6,446 |
|
6,314 |
|
6,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totes Isotoner Corporation (11) |
|
Weather Accessory Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.75%, Current Coupon 7.25%, Secured Debt (Maturity - July 7, 2017) (9) |
|
4,275 |
|
4,228 |
|
4,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Travel Leaders Group, LLC (11) |
|
Travel Agency Network Provider |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.00%, Current Coupon 7.00%, Secured Debt (Maturity - December 5, 2018) (9) |
|
7,500 |
|
7,352 |
|
7,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UniTek Global Services, Inc. (11) |
|
Provider of Outsourced Infrastructure Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 9.50%, Current Coupon 11.00% / 4.00% PIK, Current Coupon Plus PIK 15.00%, Secured Debt (Maturity - April 15, 2018) (9) |
|
10,034 |
|
9,328 |
|
10,016 |
|
|
|
|
|
|
Warrants (Fully diluted 1.4%) |
|
|
|
466 |
|
450 |
|
|
|
|
|
|
|
|
|
|
9,794 |
|
10,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Univeral Fiber Systems, LLC |
|
Manufacturer of Synthetic Fibers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 5.75%, Current Coupon 7.50%, Secured Debt (Maturity - June 26, 2015) (9) |
|
10,192 |
|
10,141 |
|
10,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Xpress Enterprises, Inc. (11) |
|
Truckload Carrier |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.88%, Current Coupon 9.38%, Secured Debt (Maturity - November 13, 2016) (9) |
|
6,078 |
|
5,985 |
|
6,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vantage Oncology, LLC (11) |
|
Outpatient Radiation Oncology Treatment Centers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.50% Secured Bond (Maturity - August 7, 2017) |
|
7,000 |
|
7,000 |
|
7,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virtex Enterprises, LP (10) |
|
Specialty, Full-Service Provider of Complex Electronic Manufacturing Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.00% Secured Debt (Maturity - December 27, 2018) |
|
1,667 |
|
1,612 |
|
1,612 |
|
|
|
|
|
|
Preferred Class A Units (5% cumulative) (Fully diluted 1.4%) (8) |
|
|
|
327 |
|
327 |
|
|
|
|
|
|
Warrants (Fully diluted 1.1%) |
|
|
|
22 |
|
22 |
|
|
|
|
|
|
|
|
|
|
1,961 |
|
1,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Visant Corporation (11) |
|
School Affinity Stores |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.00%, Current Coupon 5.25%, Secured Debt (Maturity - December 22, 2016) (9) |
|
3,882 |
|
3,882 |
|
3,837 |
|
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
|
|
Vision Solutions, Inc. (11) |
|
Provider of Information Availability Software |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 23, 2016) (9) |
|
2,348 |
|
2,235 |
|
2,347 |
|
|
|
|
|
|
LIBOR Plus 8.00%, Current Coupon 9.50%, Secured Debt (Maturity - July 23, 2017) (9) |
|
5,000 |
|
4,969 |
|
5,050 |
|
|
|
|
|
|
|
|
|
|
7,204 |
|
7,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Walker & Dunlop Inc. (11) (13) |
|
Real Estate Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.50%, Current Coupon 5.50%, Secured Debt (Maturity - December 20, 2020) (9) |
|
4,250 |
|
4,208 |
|
4,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Dental Services, Inc. (11) |
|
Dental Care Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 7.00%, Current Coupon 8.25%, Secured Debt (Maturity - November 1, 2018) (9) |
|
4,950 |
|
4,825 |
|
4,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Willbros Group, Inc. (11) (13) |
|
Engineering and Construction Contractor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 9.75%, Current Coupon 11.00%, Secured Debt (Maturity - August 5, 2019) (9) |
|
2,993 |
|
2,893 |
|
3,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wilton Brands, LLC (11) |
|
Specialty Housewares Retailer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.25%, Current Coupon 7.50%, Secured Debt (Maturity - August 30, 2018) (9) |
|
1,875 |
|
1,844 |
|
1,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireco Worldgroup, Inc. (11) |
|
Manufacturer of Synthetic Lifting Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 4.75%, Current Coupon 6.00%, Secured Debt (Maturity - February 15, 2017) (9) |
|
2,469 |
|
2,451 |
|
2,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YP Holdings LLC (11) |
|
Online and Offline Advertising Operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR Plus 6.75%, Current Coupon 8.00%, Secured Debt (Maturity - June 4, 2018) (9) |
|
2,800 |
|
2,737 |
|
2,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zilliant Incorporated |
|
Price Optimization and Margin Management Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Secured Debt (Maturity - June 15, 2017) |
|
8,000 |
|
7,056 |
|
7,056 |
|
|
|
|
|
|
Warrants (Fully diluted 2.7%) |
|
|
|
1,071 |
|
1,071 |
|
|
|
|
|
|
|
|
|
|
8,127 |
|
8,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Non-Control/Non-Affiliate Investments (50.9% of total investments at fair value) |
|
|
643,068 |
|
661,102 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio Investments, December 31, 2013 |
|
|
|
1,163,071 |
|
1,286,188 |
| ||||
MAIN STREET CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2013
(in thousands)
|
Portfolio Company (1) |
|
Business Description |
|
Type of Investment (2) (3) |
|
Principal (4) |
|
Cost (4) |
|
Fair Value |
| ||
|
Marketable Securities and Idle Funds Investments |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
Investments in Marketable Securities and Diversified, Registered Bond Funds |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Other Marketable Securities and Idle Funds Investments (13) |
|
|
|
|
|
|
|
14,885 |
|
13,301 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Subtotal Marketable Securities and Idle Funds Investments (1.0% of total investments at fair value) |
|
|
14,885 |
|
13,301 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total Investments, December 31, 2013 |
|
|
|
|
|
|
|
$ |
1,177,956 |
|
$ |
1,299,489 |
|
(1) All investments are Lower Middle Market portfolio investments, unless otherwise noted.
(2) Debt investments are income producing, unless otherwise noted. Equity and warrants are non-income producing, unless otherwise noted.
(3) See Note C for summary geographic location of portfolio companies.
(4) Principal is net of prepayments. Cost is net of prepayments and accumulated unearned income.
(5) Control investments are defined by the Investment Company Act of 1940, as amended (“1940 Act”) as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
(6) Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% of the voting securities are owned and the investments are not classified as Control investments.
(7) Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(8) Income producing through dividends or distributions.
(9) Index based floating interest rate is subject to contractual minimum interest rate.
(10) Private Loans portfolio investment. See Note B for summary of Private Loan.
(11) Middle Market portfolio investment. See Note B for summary of Middle Market.
(12) Other Portfolio investment. See Note B for summary of Other Portfolio.
(13) Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.
(14) Non-accrual and non-income producing investment.
MAIN STREET CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE A — ORGANIZATION AND BASIS OF PRESENTATION
1. Organization
Main Street Capital Corporation (“MSCC”) was formed in March 2007 for the purpose of (i) acquiring 100% of the equity interests of Main Street Mezzanine Fund, LP (“MSMF”) and its general partner, Main Street Mezzanine Management, LLC, (ii) acquiring 100% of the equity interests of Main Street Capital Partners, LLC (the “Internal Investment Manager”), (iii) raising capital in an initial public offering, which was completed in October 2007 (the “IPO”), and (iv) thereafter operating as an internally managed business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). MSMF is licensed as a Small Business Investment Company (“SBIC”) by the United States Small Business Administration (“SBA”) and the Internal Investment Manager acts as MSMF’s manager and investment adviser. Because the Internal Investment Manager, which employs all of the executive officers and other employees of MSCC, is wholly owned by MSCC, MSCC does not pay any external investment advisory fees but instead incurs the operating costs associated with employing investment and portfolio management professionals through the Internal Investment Manager. The IPO and related transactions discussed above were consummated in October 2007 and are collectively termed the “Formation Transactions.”
During January 2010, MSCC acquired (the “Exchange Offer”) approximately 88% of the total dollar value of the limited partner interests in Main Street Capital II, LP (“MSC II” and, together with MSMF, the “Funds”) and 100% of the membership interests in the general partner of MSC II, Main Street Capital II GP, LLC (“MSC II GP”). MSC II is an investment fund that operates as an SBIC and commenced operations in January 2006. During the first quarter of 2012, MSCC acquired all of the remaining minority ownership in the total dollar value of the MSC II limited partnership interests (the “Final MSC II Exchange”). The Exchange Offer and related transactions, including the acquisition of MSC II GP interests and the Final MSC II Exchange, are collectively termed the “Exchange Offer Transactions.”
MSC Adviser I, LLC (the “External Investment Manager” and, together with the Internal Investment Manager, the “Investment Managers”) was formed in November 2013 as a wholly owned subsidiary of MSCC to provide investment management advisory and other services to parties other than MSCC and its subsidiaries (“External Parties”) and receive fee income for such services. MSCC has been granted no-action relief by the Securities and Exchange Commission (“SEC”) to allow the External Investment Manager to register as a registered investment adviser (“RIA”) under Investment Advisers Act of 1940, as amended (the “Advisers Act”), to provide investment management services to External Parties. The External Investment Manager is accounted for as a portfolio investment of MSCC, since the External Investment Manager conducts all of its investment management activities for parties outside of MSCC and its consolidated subsidiaries.
MSCC has elected to be treated for federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a result, MSCC generally will not pay corporate-level federal income taxes on any net ordinary income or capital gains that it distributes to its stockholders as dividends.
MSCC has direct and indirect wholly owned subsidiaries that have elected to be taxable entities (the “Taxable Subsidiaries”). The primary purpose of these entities is to hold certain investments that generate “pass through” income for tax purposes. Each of the Investment Managers is also a direct wholly owned subsidiary that has elected to be a taxable entity. The Taxable Subsidiaries and the Investment Managers are each taxed at their normal corporate tax rates based on their taxable income.
Unless otherwise noted or the context otherwise indicates, the terms “we,” “us,” “our” and “Main Street” refer to MSCC and its consolidated subsidiaries, which include the Funds, the Taxable Subsidiaries and, beginning April 1, 2013, the Internal Investment Manager (see Note A.2. for further discussion).
2. Basis of Presentation
Main Street’s financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). For each of the periods presented herein, Main Street’s consolidated financial statements include the accounts of MSCC and its consolidated subsidiaries (which, as noted above and discussed in detail below, include the Funds and the Taxable Subsidiaries and, beginning April 1, 2013, include the Internal Investment Manager which was previously treated as a portfolio investment). The Investment Portfolio, as used herein, refers to all of Main Street’s investments in LMM portfolio companies, investments in Middle Market portfolio companies, Private Loan portfolio investments, Other Portfolio investments, the
investment in the External Investment Manager and, for all periods up to and including March 31, 2013, the investment in the Internal Investment Manager, but excludes all “Marketable securities and idle funds investments”, and, for all periods after March 31, 2013, the Investment Portfolio also excludes the investment in the Internal Investment Manager (see Note C — Fair Value Hierarchy for Investments and Debentures — Portfolio Investment Composition for additional discussion of Main Street’s Investment Portfolio and definitions for the terms LMM, Middle Market, Private Loan and Other Portfolio). For all periods up to and including the period ending March 31, 2013, the Internal Investment Manager was accounted for as a portfolio investment (see Note D) and was not consolidated with MSCC and its consolidated subsidiaries. For all periods after March 31, 2013, the Internal Investment Manager is consolidated with MSCC and its other consolidated subsidiaries. “Marketable securities and idle funds investments” are classified as financial instruments and are reported separately on Main Street’s Consolidated Balance Sheets and Consolidated Schedule of Investments due to the nature of such investments (see Note B.11.). Main Street’s results of operations and cash flows for the three months ended March 31, 2014 and 2013 and financial position as of March 31, 2014 and December 31, 2013, are presented on a consolidated basis. The effects of all intercompany transactions between Main Street and its consolidated subsidiaries have been eliminated in consolidation.
The accompanying unaudited consolidated financial statements of Main Street are presented in conformity with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods included herein. The results of operations for the three months ended March 31, 2014 and 2013 are not necessarily indicative of the operating results to be expected for the full year. Also, the unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2013. Financial statements prepared on a U.S. GAAP basis require management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.
Under the investment company rules and regulations pursuant to Article 6 of Regulation S-X and the Audit and Accounting Guide for Investment Companies issued by the American Institute of Certified Public Accountants (the “AICPA Guide”), Main Street is precluded from consolidating portfolio company investments, including those in which it has a controlling interest, unless the portfolio company is another investment company. An exception to this general principle in the AICPA Guide occurs if Main Street holds a controlling interest in an operating company that provides all or substantially all of its services directly to Main Street or to its portfolio companies. None of the portfolio investments made by Main Street qualify for this exception, including the investment in the External Investment Manager, except as discussed below with respect to the Internal Investment Manager. Therefore, Main Street’s Investment Portfolio is carried on the balance sheet at fair value, as discussed further in Note B, with any adjustments to fair value recognized as “Net Change in Unrealized Appreciation (Depreciation)” on the Statement of Operations until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a “Net Realized Gain (Loss) from Investments.” For all periods prior to and including March 31, 2013, the Internal Investment Manager was accounted for as a portfolio investment and included as part of the Investment Portfolio in the consolidated financial statements of Main Street (see Note D for further discussion of the Internal Investment Manager). The Internal Investment Manager was consolidated with MSCC and its other consolidated subsidiaries prospectively beginning April 1, 2013 as the controlled operating subsidiary is providing substantially all of its services directly or indirectly to Main Street or its portfolio companies.
Portfolio Investment Classification
Main Street classifies its Investment Portfolio in accordance with the requirements of the 1940 Act. Under the 1940 Act, (a) “Control Investments” are defined as investments in which Main Street owns more than 25% of the voting securities or has rights to maintain greater than 50% of the board representation, (b) “Affiliate Investments” are defined as investments in which Main Street owns between 5% and 25% of the voting securities and does not have rights to maintain greater than 50% of the board representation, and (c) “Non-Control/Non-Affiliate Investments” are defined as investments that are neither Control Investments nor Affiliate Investments.
NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Valuation of the Investment Portfolio
Main Street accounts for its Investment Portfolio at fair value. As a result, Main Street follows the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“Codification” or “ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires Main Street to assume that the portfolio investment is to be sold in the principal market to independent market
participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable, and willing and able to transact.
Main Street’s portfolio strategy calls for it to invest primarily in illiquid debt and equity securities issued by private, LMM companies and debt securities issued by Middle Market companies that are generally larger in size than the LMM companies. Main Street categorizes some of its investments in LMM companies and Middle Market companies as Private Loan portfolio investments, which are primarily debt securities issued by companies that are consistent in size with either the LMM companies or Middle Market companies, but are investments which have been originated through strategic relationships with other investment funds on a collaborative basis. The structure, terms and conditions for these Private Loan investments are typically consistent with the structure, terms and conditions for the loans made in its LMM portfolio or Middle Market portfolio. Main Street’s portfolio also includes Other Portfolio investments which primarily consist of investments that are not consistent with the typical profiles for its LMM portfolio investments, Middle Market portfolio investments or Private Loan portfolio investments, including investments which may be managed by third parties. Main Street’s portfolio investments may be subject to restrictions on resale.
LMM investments and Other Portfolio investments generally have no established trading market while Middle Market securities generally have established markets that are not active. Private Loan investments may include investments which have no established trading market or have established markets that are not active. Main Street determines in good faith the fair value of its Investment Portfolio pursuant to a valuation policy in accordance with ASC 820 and a valuation process approved by its Board of Directors and in accordance with the 1940 Act. Main Street’s valuation policies and processes are intended to provide a consistent basis for determining the fair value of the portfolio.
For LMM portfolio investments, Main Street generally reviews external events, including private mergers, sales and acquisitions involving comparable companies, and includes these events in the valuation process by using an enterprise value waterfall (“Waterfall”) for its LMM equity investments and an income approach using a yield-to-maturity model (“Yield-to-Maturity”) for its LMM debt investments. For Middle Market portfolio investments, Main Street primarily uses observable inputs such as quoted prices in the valuation process. Main Street determines the appropriateness of the use of third-party broker quotes, if any, in determining fair value based on its understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer, the depth and consistency of broker quotes and the correlation of changes in broker quotes with underlying performance of the portfolio company and other market indices. For Middle Market and Private Loan portfolio investments in debt securities for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value the investment in a current hypothetical sale using the Yield-to-Maturity valuation method. For its Other Portfolio equity investments, Main Street generally calculates the fair value of the investment primarily based on the net asset value (“NAV”) of the fund. All of the valuation approaches for Main Street’s portfolio investments estimate the value of the investment as if Main Street were to sell, or exit, the investment as of the measurement date.
Under the Waterfall valuation method, Main Street estimates the enterprise value of a portfolio company using a combination of market and income approaches or other appropriate valuation methods, such as considering recent transactions in the equity securities of the portfolio company or third-party valuations of the portfolio company, and then performs a waterfall calculation by using the enterprise value over the portfolio company’s securities in order of their preference relative to one another. The Waterfall method assumes the loans and equity securities are sold to the same market participant, which Main Street believes is consistent with its past transaction history and standard industry practices. The enterprise value is the fair value at which an enterprise could be sold in a transaction between two willing parties, other than through a forced or liquidation sale. Typically, private companies are bought and sold based on multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value. There is no single methodology for estimating enterprise value. For any one portfolio company, enterprise value is generally described as a range of values from which a single estimate of enterprise value is derived. In estimating the enterprise value of a portfolio company, Main Street analyzes various factors including the portfolio company’s historical and projected financial results. The operating results of a portfolio company may include unaudited, projected, budgeted or pro forma financial information and may require adjustments for non-recurring items or to normalize the operating results that may require significant judgment in its determination. In addition, projecting future financial results requires significant judgment regarding future growth assumptions. In evaluating the operating results, Main Street also analyzes the impact of exposure to litigation, loss of customers or other contingencies. After determining the appropriate enterprise value, Main Street allocates the enterprise value to investments in order of the legal priority of the various components of the portfolio company’s capital structure. In applying the Waterfall valuation method, Main Street assumes the loans are paid off at the principal amount in a change in control transaction and are not assumed by the buyer.
These valuation approaches consider the value associated with Main Street’s ability to control the capital structure of the portfolio company, as well as the timing of a potential exit. For valuation purposes, “control” portfolio investments are composed of debt and equity securities in companies for which Main Street has a controlling interest in the portfolio company or the ability to
nominate a majority of the portfolio company’s board of directors. For valuation purposes, “non-control” portfolio investments are generally composed of debt and equity securities in companies for which Main Street does not have a controlling interest in the portfolio company or the ability to nominate a majority of the portfolio company’s board of directors.
Under the Yield-to-Maturity valuation method, Main Street will also use the income approach to determine the fair value of these securities based on projections of the discounted future free cash flows that the debt security will likely generate and which includes using a Yield-to-Maturity approach that analyzes the discounted cash flows of interest and principal amounts for the debt security, as set forth in the associated loan agreements, as well as the financial position and credit risk of each of these portfolio investments. Main Street’s estimate of the expected repayment date of its debt securities is generally the legal maturity date of the instrument, as Main Street generally intends to hold its loans and debt securities to maturity. The Yield-to-Maturity analysis considers changes in leverage levels, credit quality, portfolio company performance and other factors. Main Street will use the value determined by the Yield-to-Maturity analysis as the fair value for that security; however, because of Main Street’s general intent to hold its loans to maturity, the fair value will not exceed the principal amount of the debt security valued using the Yield-to-Maturity valuation method. A change in the assumptions that Main Street uses to estimate the fair value of its debt securities using the Yield-to-Maturity valuation method could have a material impact on the determination of fair value. If there is deterioration in credit quality or if a debt security is in workout status, Main Street may consider other factors in determining the fair value of the debt security, including the value attributable to the debt security from the enterprise value of the portfolio company or the proceeds that would most likely be received in a liquidation analysis.
Under the NAV valuation method, for an investment in an investment fund that does not have a readily determinable fair value, Main Street will measure the fair value of the investment predominately based on the NAV of the investment fund as of the measurement date. However, in determining the fair value of the investment, Main Street may consider whether adjustments to the NAV are necessary in certain circumstances, based on the analysis of any restrictions on redemption of Main Street’s investment as of the measurement date, recent actual sales or redemptions of interests in the investment fund, and expected future cash flows available to equity holders, including the rate of return on those cash flows compared to an implied market return on equity required by market participants, or other uncertainties surrounding its ability to realize the full NAV of its interests in the investment fund.
Pursuant to its internal valuation process and the requirements under the 1940 Act, Main Street performs valuation procedures on its investments in each LMM portfolio company quarterly. In addition to its internal valuation process, in arriving at estimates of fair value for its investments in its LMM portfolio companies, Main Street, among other things, consults with a nationally recognized independent financial advisory services firm. The nationally recognized independent advisor is generally consulted relative to Main Street’s investments in each LMM portfolio company at least once in every calendar year, and for Main Street’s investments in new LMM portfolio companies, at least once in the twelve-month period subsequent to the initial investment. In certain instances, Main Street may determine that it is not cost-effective, and as a result is not in its stockholders’ best interest, to consult with the nationally recognized independent advisor on its investments in one or more LMM portfolio companies. Such instances include, but are not limited to, situations where the fair value of Main Street’s investment in a LMM portfolio company is determined to be insignificant relative to the total Investment Portfolio. Main Street consulted with its independent advisor in arriving at Main Street’s determination of fair value on its investments in a total of 17 LMM portfolio companies for the three months ended March 31, 2014, representing approximately 29% of the total LMM portfolio at fair value as of March 31, 2014 and on a total of 15 LMM portfolio companies for the three months ended March 31, 2013, representing approximately 23% of the total LMM portfolio at fair value as of March 31, 2013. Excluding Main Street’s investments in new LMM portfolio companies which have not been in the Investment Portfolio for at least twelve months subsequent to the initial investment as of March 31, 2014 and 2013, as applicable, the percentage of the LMM portfolio reviewed for the three months ended March 31, 2014 and 2013 was 32% and 29% of total LMM portfolio at fair value as of March 31, 2014 and 2013, respectively.
For valuation purposes, all of Main Street’s Middle Market portfolio investments are non-control investments. Main Street primarily uses observable inputs to determine the fair value of these investments through obtaining third-party quotes or other independent pricing, to the extent such sufficient observable inputs are available to determine fair value. For Middle Market portfolio investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value its Middle Market debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method and its Middle Market equity investments in a current hypothetical sale using the Waterfall Valuation method.
For valuation purposes, all of Main Street’s Private Loan portfolio investments are non-control investments. For Private Loan portfolio investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value its Private Loan debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method and its Private Loan equity investments in a current hypothetical sale using the Waterfall Valuation method.
For valuation purposes, all of Main Street’s Other Portfolio investments are non-control investments. Main Street’s Other Portfolio investments comprised 3.4% and 3.3%, respectively, of Main Street’s Investment Portfolio at fair value as of March 31, 2014 and December 31, 2013. Similar to the LMM investment portfolio, market quotations for Other Portfolio equity investments are generally not readily available. For its Other Portfolio equity investments, Main Street generally determines the fair value of its investments using the NAV valuation method. For Other Portfolio debt investments, Main Street determines the fair value of these investments through obtaining third-party quotes or other independent pricing to the extent the use of these inputs are available and appropriate to determine fair value. For Other Portfolio debt investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value its Other Portfolio debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method.
For valuation purposes, Main Street’s investment in the External Investment Manager is a control investment. Market quotations are not readily available for this investment, and as a result, Main Street determines the fair value of the External Investment Manager using the Waterfall methodology under the market approach. In estimating the enterprise value, Main Street analyzes various factors, including the entity’s historical and projected financial results, as well as its size, marketability and performance relative to the population of market multiples. This valuation approach estimates the value of the investment as if Main Street were to sell, or exit, the investment. In addition, Main Street considers the value associated with Main Street’s ability to control the capital structure of the company, as well as the timing of a potential exit.
Due to the inherent uncertainty in the valuation process, Main Street’s determination of fair value for its Investment Portfolio may differ materially from the values that would have been used had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. Main Street determines the fair value of each individual investment and records changes in fair value as unrealized appreciation or depreciation.
Main Street uses a standard internal portfolio investment rating system in connection with its investment oversight, portfolio management and analysis and investment valuation procedures for its LMM portfolio companies. This system takes into account both quantitative and qualitative factors of the LMM portfolio company and the investments held therein.
The Board of Directors of Main Street has the final responsibility for reviewing and approving, in good faith, Main Street’s determination of the fair value for its Investment Portfolio, as well as its valuation procedures, consistent with the 1940 Act requirements. Main Street believes its Investment Portfolio as of March 31, 2014 and December 31, 2013 approximates fair value as of those dates based on the markets in which Main Street operates and other conditions in existence on those reporting dates.
2. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results may differ from these estimates under different conditions or assumptions. Additionally, as explained in Note B.1., the financial statements include investments in the Investment Portfolio whose values have been estimated by Main Street with the oversight, review and approval by Main Street’s Board of Directors in the absence of readily ascertainable market values. Because of the inherent uncertainty of the Investment Portfolio valuations, those estimated values may differ significantly from the values that would have been used had a readily available market for the investments existed, and it is reasonably possible that the differences could be material.
3. Cash and Cash Equivalents
Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase. Cash and cash equivalents are carried at cost, which approximates fair value.
At March 31, 2014, cash balances totaling $21.4 million exceeded FDIC insurance protection levels, subjecting the Company to risk related to the uninsured balance. All of the Company’s cash deposits are held at large established high credit quality financial institutions and management believes that the risk of loss associated with any uninsured balances is remote.
4. Marketable Securities and Idle Funds Investments
Marketable securities and idle funds investments include intermediate-term secured debt investments, independently rated debt investments and publicly traded debt and equity investments.
5. Interest, Dividend and Fee Income (Structuring and Advisory Services)
Main Street records interest and dividend income on the accrual basis to the extent amounts are expected to be collected. Dividend income is recorded as dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. In accordance with Main Street’s valuation policy, Main Street evaluates accrued interest and dividend income periodically for collectability. When a loan or debt security becomes 90 days or more past due, and if Main Street otherwise does not expect the debtor to be able to service all of its debt or other obligations, Main Street will generally place the loan or debt security on non-accrual status and cease recognizing interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, or if a loan or debt security is fully impaired, sold or written off, Main Street removes it from non-accrual status.
Main Street holds debt and preferred equity instruments in its Investment Portfolio that contain payment-in-kind (“PIK”) interest and cumulative dividend provisions. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. Cumulative dividends are recorded as dividend income, and any dividends in arrears are added to the balance of the preferred equity investment. The actual collection of these dividends in arrears may be deferred until such time as the preferred equity is redeemed. To maintain RIC tax treatment (as discussed in Note B.9. below), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though Main Street may not have collected the PIK interest and cumulative dividends in cash. For the three months ended March 31, 2014 and 2013, (i) approximately 5.4% and 5.2%, respectively, of Main Street’s total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately 1.2% and 0.7%, respectively, of Main Street’s total investment income was attributable to cumulative dividend income not paid currently in cash.
As of March 31, 2014, Main Street had two investments with positive fair value on non-accrual status, which comprised approximately 2.0% of the total Investment Portfolio at fair value and 4.6% of the total Investment Portfolio at cost, and no fully impaired investments. As of December 31, 2013, Main Street had two investments with positive fair value on non-accrual status, which comprised approximately 2.3% of the total Investment Portfolio at fair value and 4.7% of the total Investment Portfolio at cost, and no fully impaired investments.
Main Street may periodically provide services, including structuring and advisory services, to its portfolio companies or other third parties. For services that are separately identifiable and evidence exists to substantiate fair value, income is recognized as earned, which is generally when the investment or other applicable transaction closes. Fees received in connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are deferred and accreted into interest income over the life of the financing.
A presentation of the investment income Main Street received from its Investment Portfolio in each of the periods presented is as follows:
|
|
|
Three Months Ended March 31, |
| ||||
|
|
|
2014 |
|
2013 |
| ||
|
|
|
(in thousands) |
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|
|
|
(Unaudited) |
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|
Interest, fee and dividend income: |
|
|
|
|
| ||
|
Interest income |
|
$ |
25,734 |
|
$ |
21,485 |
|
|
Fee income |
|
791 |
|
1,426 |
| ||
|
Dividend income |
|
4,044 |
|
2,422 |
| ||
|
Total interest, fee and dividend income |
|
$ |
30,569 |
|
$ |
25,333 |
|
6. Deferred Financing Costs
Deferred financing costs include SBIC debenture commitment fees and SBIC debenture leverage fees on the SBIC debentures which are not accounted for under the fair value option under ASC 825 (as discussed further in Note B.11.). These fees are approximately 3.4% of the total commitment and draw amounts, as applicable. These deferred financing costs have been capitalized and are being amortized into interest expense over the term of the debenture agreement (ten years).
Deferred financing costs also include commitment fees and other costs related to Main Street’s multi-year investment credit facility (the “Credit Facility”, as discussed further in Note F). These costs have been capitalized and are amortized into interest expense over their respective terms.
7. Unearned Income — Debt Origination Fees and Original Issue Discount and Discounts / Premiums to Par Value
Main Street capitalizes debt origination fees received in connection with financings and reflects such fees as unearned income netted against the applicable debt investments. The unearned income from the fees is accreted into interest income based on the effective interest method over the life of the financing.
In connection with its portfolio debt investments, Main Street sometimes receives nominal cost warrants (“nominal cost equity”) that are valued as part of the negotiation process with the particular portfolio company. When Main Street receives nominal cost equity, Main Street allocates its cost basis in its investment between its debt security and its nominal cost equity at the time of origination based on amounts negotiated with the particular portfolio company. The allocated amounts are based upon the fair value of the nominal cost equity, which is then used to determine the allocation of cost to the debt security. Any discount recorded on a debt investment resulting from this allocation is reflected as unearned income, which is netted against the applicable debt investment, and accreted into interest income based on the effective interest method over the life of the debt investment. The actual collection of this interest is deferred until the time of debt principal repayment.
Main Street may also purchase debt securities at a discount or at a premium to the par value of the debt security. In the case of a purchase at a discount, Main Street records the investment at the par value of the debt security net of the discount, and the discount is accreted into interest income based on the effective interest method over the life of the debt investment. In the case of a purchase at a premium, Main Street records the investment at the par value of the debt security plus the premium, and the premium is amortized as a reduction to interest income based on the effective interest method over the life of the debt investment.
To maintain RIC tax treatment (as discussed below in Note B.9.), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though Main Street may not have collected them. For the three months ended March 31, 2014 and 2013, approximately 4.0% and 2.8%, respectively, of Main Street’s total investment income was attributable to interest income from the accretion of discounts, net of any premium reduction, associated with debt investments.
8. Share-Based Compensation
Main Street accounts for its share-based compensation plans using the fair value method, as prescribed by ASC 718, Compensation — Stock Compensation. Accordingly, for restricted stock awards, Main Street measures the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as share-based compensation expense over the requisite service period or vesting term.
9. Income Taxes
MSCC has elected and intends to continue to qualify for the tax treatment applicable to a RIC under the Code, and, among other things, intends to make the required distributions to its stockholders as specified therein. In order to qualify as a RIC, MSCC is required to timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, each year. Depending on the level of taxable income earned in a tax year, MSCC may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a 4% excise tax on such income. As part of maintaining RIC status, undistributed taxable income (subject to a 4% excise tax) pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared prior to the filing of the federal income tax return for the applicable fiscal year.
The Taxable Subsidiaries hold certain portfolio investments of Main Street. The Taxable Subsidiaries are consolidated for U.S. GAAP reporting purposes, and the portfolio investments held by them are included in the consolidated financial statements as portfolio investments and recorded at fair value. The Taxable Subsidiaries permit Main Street to hold equity investments in portfolio companies which are “pass through” entities for tax purposes and continue to comply with the “source income” requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are not consolidated with Main Street for income tax purposes and may generate income tax expense, or benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. This income tax expense, or benefit, if any, and the related tax assets and liabilities are reflected in Main Street’s consolidated financial statements.
The Internal Investment Manager has elected, for tax purposes, to be treated as a taxable entity, is not consolidated with Main Street for income tax purposes and is taxed at normal corporate tax rates based on its taxable income and, as a result of its activities,
may generate income tax expense or benefit. The Internal Investment Manager elected to be treated as a taxable entity to enable it to receive fee income and to allow MSCC to continue to comply with the “source income” requirements contained in the RIC tax provisions of the Code. The taxable income, or loss, of the Internal Investment Manager may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. Through March 31, 2013, the Internal Investment Manager provided for any income tax expense, or benefit, and any related tax assets or liabilities, in its separate financial statements. Beginning April 1, 2013, the Internal Investment Manager is included in Main Street’s consolidated financial statements and reflected as a consolidated subsidiary and any income tax expense, or benefit, and any related tax assets and liabilities, are reflected in Main Street’s consolidated financial statements.
The Taxable Subsidiaries and the Internal Investment Manager use the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.
Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income generally excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.
10. Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation
Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of an investment or a financial instrument and the cost basis of the investment or financial instrument, without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period net of recoveries and realized gains or losses from in-kind redemptions. Net change in unrealized appreciation or depreciation reflects the net change in the fair value of the Investment Portfolio and financial instruments and the reclassification of any prior period unrealized appreciation or depreciation on exited investments and financial instruments to realized gains or losses.
11. Fair Value of Financial Instruments
Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Main Street believes that the carrying amounts of its financial instruments, consisting of cash and cash equivalents, receivables, accounts payable and accrued liabilities approximate the fair values of such items due to the short term nature of these instruments. Marketable securities and idle funds investments may include investments in certificates of deposit, U.S. government agency securities, independently rated debt investments, diversified bond funds and publicly traded debt and equity investments and the fair value determination for these investments under the provisions of ASC 820 generally consists of Level 1 and 2 observable inputs, similar in nature to those discussed further in Note C.
As part of the Exchange Offer, Main Street elected the fair value option under ASC 825, Financial Instruments (“ASC 825”) relating to accounting for debt obligations at their fair value, for the MSC II SBIC debentures acquired (the “Acquired Debentures”) as part of the acquisition accounting related to the Exchange Offer and values those obligations as discussed further in Note C. In order to provide for a more consistent basis of presentation, Main Street has continued to elect the fair value option for SBIC debentures issued by MSC II subsequent to the Exchange Offer. When the fair value option is elected for a given SBIC debenture, the deferred loan costs associated with the debenture are fully expensed in the current period to “Net Change in Unrealized Appreciation (Depreciation) — SBIC debentures” as part of the fair value adjustment. Interest incurred in connection with SBIC debentures which are valued at fair value is included in interest expense.
12. Earnings per Share
Basic and diluted per share calculations are computed utilizing the weighted average number of shares of common stock outstanding for the period. Main Street adopted the amended guidance in ASC 260, Earnings Per Share, and based on the guidance, the unvested shares of restricted stock awarded pursuant to Main Street’s equity compensation plans are participating securities and are included in the basic earnings per share calculation. As a result, for all periods presented, there is no difference between diluted earnings per share and basic earnings per share amounts.
13. Recently Issued Accounting Standards
In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date
(“ASU 2013-04”). ASU 2013-04 provides additional guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date. Public companies are required to apply ASU 2013-04 prospectively for interim and annual reporting periods beginning after December 15, 2013. The adoption of this standard did not have a material effect on Main Street’s consolidated financial statements.
In June 2013, the FASB issued ASU 2013-08, Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements (“ASU 2013-08”). ASU 2013-08 amends the criteria that define an investment company, clarifies the measurement guidance and requires certain additional disclosures. Public companies are required to apply ASU 2013-08 prospectively for interim and annual reporting periods beginning after December 15, 2013. The adoption of this standard did not have a material effect on Main Street’s consolidated financial statements.
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance on the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists as of the reporting date. The update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retrospective application is permitted. The adoption of this standard did not have a material effect on Main Street’s consolidated financial statements.
From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by Main Street as of the specified effective date. Main Street believes that the impact of recently issued standards that have been issued and any that are not yet effective will not have a material impact on its financial statements upon adoption.
NOTE C — FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES — PORTFOLIO COMPOSITION
ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. Main Street accounts for its investments at fair value.
Fair Value Hierarchy
In accordance with ASC 820, Main Street has categorized its investments based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical investments (Level 1) and the lowest priority to unobservable inputs (Level 3).
Investments recorded on Main Street’s balance sheet are categorized based on the inputs to the valuation techniques as follows:
Level 1 — Investments whose values are based on unadjusted quoted prices for identical assets in an active market that Main Street has the ability to access (examples include investments in active exchange-traded equity securities and investments in most U.S. government and agency securities).
Level 2 — Investments whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the investment. Level 2 inputs include the following:
· Quoted prices for similar assets in active markets (for example, investments in restricted stock);
· Quoted prices for identical or similar assets in non-active markets (for example, investments in thinly traded public companies);
· Pricing models whose inputs are observable for substantially the full term of the investment (for example, market interest rate indices); and
· Pricing models whose inputs are derived principally from, or corroborated by, observable market data through correlation or other means for substantially the full term of the investment.
Level 3 — Investments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (for example, investments in illiquid securities issued by private companies). These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the investment.
As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value
measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, unrealized appreciation and depreciation related to such investments categorized within the Level 3 tables below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). Main Street conducts reviews of fair value hierarchy classifications on a quarterly basis. During the classification process, Main Street may determine that it is appropriate to transfer investments between fair value hierarchy Levels. These transfers occur when the company has concluded that it is appropriate for the classification of an individual asset to be changed due to a change in the factors used to determine the selection of the Level. Any such changes are deemed to be effective during the quarter in which the transfer occurs.
As of March 31, 2014 and December 31, 2013, all except for one of Main Street’s LMM portfolio investments consisted of illiquid securities issued by private companies. The remaining investment was a publicly traded equity security. As a result, the fair value determination for the LMM portfolio investments primarily consisted of unobservable inputs. The fair value determination for the publicly traded equity security consisted of observable inputs in non-active markets for which sufficient observable inputs were available to determine the fair value. As a result, all of Main Street’s LMM portfolio investments were categorized as Level 3 as of March 31, 2014 and December 31, 2013, except for the one publicly traded equity security which was categorized as Level 2.
As of March 31, 2014, Main Street’s Middle Market portfolio investments consisted primarily of investments in secured and unsecured debt investments and independently rated debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, Main Street’s Middle Market portfolio investments were categorized as Level 3 as of March 31, 2014. As of December 31, 2013, Main Street’s Middle Market portfolio investments consisted primarily of investments in secured and unsecured debt investments and independently rated debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were available to determine the fair value of these investments, observable inputs in the non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, a portion of Main Street’s Middle Market portfolio investments were categorized as Level 2 as of December 31, 2013. For those Middle Market portfolio investments for which sufficient observable inputs were not available to determine fair value of the investments, Main Street categorized such investments as Level 3 as of December 31, 2013.
As of March 31, 2014 and December 31, 2013, Main Street’s Private Loan portfolio investments primarily consisted of investments in interest-bearing debt securities in companies that are consistent with the size of companies in its LMM portfolio or its Middle Market portfolio, but are investments which have been originated through strategic relationships with other investment funds on a collaborative basis. Main Street’s Private Loan portfolio debt investments are generally secured by either a first or second priority lien. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of Main Street’s Private Loan portfolio investments were categorized as Level 3 as of March 31, 2014 and December 31, 2013.
As of December 31, 2013, Main Street’s Other Portfolio debt investments consisted of investments in secured debt investments. The fair value determination for Other Portfolio debt investments consisted of observable inputs in non-active markets and, as such, were categorized as Level 2 as of December 31, 2013. There were no Other Portfolio debt investments as of March 31, 2014.
As of March 31, 2014 and December 31, 2013, Main Street’s Other Portfolio equity investments consisted of illiquid securities issued by private companies. The fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of Main Street’s Other Portfolio equity investments were categorized as Level 3 as of March 31, 2014 and December 31, 2013.
As of March 31, 2014 and December 31, 2013, Main Street’s Marketable securities and idle funds investments consisted primarily of investments in publicly traded debt and equity investments. The fair value determination for these investments consisted of a combination of observable inputs in active markets for which sufficient observable inputs were available to determine the fair value of these investments. As a result, all of Main Street’s Marketable securities and idle funds investments were categorized as Level 1 as of March 31, 2014 and December 31, 2013.
The fair value determination of each portfolio investment categorized as Level 3 required one or more of the following unobservable inputs:
· Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers;
· Current and projected financial condition of the portfolio company;
· Current and projected ability of the portfolio company to service its debt obligations;
· Type and amount of collateral, if any, underlying the investment;
· Current financial ratios (e.g., fixed charge coverage ratio, interest coverage ratio, and net debt/EBITDA ratio) applicable to the investment;
· Current liquidity of the investment and related financial ratios (e.g., current ratio and quick ratio);
· Pending debt or capital restructuring of the portfolio company;
· Projected operating results of the portfolio company;
· Current information regarding any offers to purchase the investment;
· Current ability of the portfolio company to raise any additional financing as needed;
· Changes in the economic environment which may have a material impact on the operating results of the portfolio company;
· Internal occurrences that may have an impact (both positive and negative) on the operating performance of the portfolio company;
· Qualitative assessment of key management;
· Contractual rights, obligations or restrictions associated with the investment; and
· Other factors deemed relevant.
The significant unobservable inputs used in the fair value measurement of Main Street’s LMM equity securities, which are generally valued through an average of the discounted cash flow technique and the market comparable/enterprise value technique (unless one of these approaches is determined to not be appropriate), are (i) EBITDA multiples and (ii) the weighted average cost of capital (“WACC”). Significant increases (decreases) in EBITDA multiple inputs in isolation would result in a significantly higher (lower) fair value measurement. On the contrary, significant increases (decreases) in WACC inputs in isolation would result in a significantly lower (higher) fair value measurement. The significant unobservable inputs used in the fair value measurement of Main Street’s LMM, Middle Market, Private Loan and Other Portfolio debt securities are (i) risk adjusted discount rates used in the Yield-to-Maturity valuation technique (described in Note B.1. — Valuation of the Investment Portfolio) and (ii) the percentage of expected principal recovery. Significant increases (decreases) in any of these discount rates in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in any of these expected principal recovery percentages in isolation would result in a significantly higher (lower) fair value measurement. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third-party appraisals of collateral and fair values as determined by independent third parties, which are not presented in the table below.
|
Type of Investment |
|
Fair Value as of |
|
Valuation Technique |
|
Significant Unobservable Inputs |
|
Range (3) |
|
Weighted |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Equity investments |
|
$ |
320,507 |
|
Discounted cash flow |
|
Weighted average cost of capital |
|
10.2% |
- |
21.4% |
|
13.8% |
|
|
|
|
|
|
Market comparable / Enterprise Value |
|
EBITDA multiple (1) |
|
4.0x |
- |
7.3x (2) |
|
6.0x |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Debt investments |
|
$ |
460,785 |
|
Discounted cash flow |
|
Risk adjusted discount factor |
|
6.5% |
- |
26.4% (2) |
|
14.5% |
|
|
|
|
|
|
|
|
Adjustment factors |
|
66.9% |
- |
100.0% |
|
98.3% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
$ |
514,631 |
|
Market Approach |
|
Third Party Quote |
|
82.8 |
- |
103.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total Level 3 investments |
|
$ |
1,295,923 |
|
|
|
|
|
|
|
|
|
|
|
(1) EBITDA may include proforma adjustments and/or other addbacks based on specific circumstances related to each investment.
(2) Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is 3.5x - 11.5x and the range for risk adjusted discount factor is 6.5% - 157.7%.
(3) Does not include investments for which the valuation technique does not include the use of the applicable fair value input.
The following table provides a summary of the significant unobservable inputs used to fair value Main Street’s Level 3 portfolio investments as of December 31, 2013:
|
Type of Investment |
|
Fair Value as of |
|
Valuation Technique |
|
Significant Unobservable Inputs |
|
Range (3) |
|
Weighted |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Equity investments |
|
$ |
307,322 |
|
Discounted cash flow |
|
Weighted average cost of capital |
|
11.1% |
- |
19.0% |
|
14.3% |
|
|
|
|
|
|
Market comparable / Enterprise Value |
|
EBITDA multiple (1) |
|
4.0x |
- |
7.2x (2) |
|
6.0x |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Debt investments |
|
$ |
467,396 |
|
Discounted cash flow |
|
Risk adjusted discount factor |
|
6.5% |
- |
26.4% (2) |
|
14.3% |
|
|
|
|
|
|
|
|
Adjustment factors |
|
66.9% |
- |
100.0% |
|
97.8% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
$ |
430,172 |
|
Market Approach |
|
Third Party Quote |
|
82.3 |
- |
102.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total Level 3 investments |
|
$ |
1,204,890 |
|
|
|
|
|
|
|
|
|
|
|
(1) EBITDA may include proforma adjustments and/or other addbacks based on specific circumstances related to each investment.
(2) Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is 4.0x - 11.5x and the range for risk adjusted discount factor is 6.5% - 96.0%.
(3) Does not include investments for which the valuation technique does not include the use of the applicable fair value input.
The following table provides a summary of changes in fair value of Main Street’s Level 3 portfolio investments for the three months ended March 31, 2014 (amounts in thousands). All transfers that occurred between fair value hierarchy levels during the three months ended March 31, 2014 were transfers out of Level 2 into Level 3.
|
Type of Investment |
|
Fair Value as of |
|
Transfers Into |
|
Redemptions/ |
|
New |
|
Net Changes from |
|
Net Unrealized |
|
Other |
|
Fair Value as of |
| ||||||||
|
Debt |
|
$ |
897,568 |
|
$ |
55,102 |
|
$ |
(103,179 |
) |
$ |
128,183 |
|
$ |
184 |
|
$ |
(2,459 |
) |
$ |
17 |
|
$ |
975,416 |
|
|
Equity |
|
270,764 |
|
— |
|
(393 |
) |
3,972 |
|
4 |
|
11,098 |
|
— |
|
285,445 |
| ||||||||
|
Equity Warrant |
|
36,558 |
|
— |
|
— |
|
297 |
|
— |
|
(1,776 |
) |
(17 |
) |
35,062 |
| ||||||||
|
|
|
$ |
1,204,890 |
|
$ |
55,102 |
|
$ |
(103,572 |
) |
$ |
132,452 |
|
$ |
188 |
|
$ |
6,863 |
|
$ |
0 |
|
$ |
1,295,923 |
|
(1) Includes the impact of non-cash conversions.
The following table provides a summary of changes in fair value of Main Street’s Level 3 portfolio investments for the three months ended March 31, 2013 (amounts in thousands). All transfers that occurred between fair value hierarchy levels during the three months ended March 31, 2013 were transfers out of Level 2 into Level 3.
|
|
|
|
|
|
|
Redemptions/ |
|
New |
|
Net Changes from |
|
Net Unrealized |
|
|
|
|
| ||||||||
|
|
|
Fair Value as of |
|
Transfers Into |
|
Repayments/ |
|
Investments |
|
Unrealized to |
|
Appreciation |
|
Other |
|
Fair Value as of |
| ||||||||
|
Type of Investment |
|
December 31, 2012 |
|
Level 3 Hierarchy |
|
(1) |
|
(1) |
|
Realized |
|
(Depreciation) |
|
(1) |
|
March 31, 2013 |
| ||||||||
|
Debt |
|
$ |
477,272 |
|
$ |
4,992 |
|
$ |
(25,841 |
) |
$ |
105,291 |
|
$ |
(522 |
) |
$ |
1,948 |
|
$ |
1,195 |
|
$ |
564,335 |
|
|
Equity |
|
191,764 |
|
— |
|
152 |
|
7,009 |
|
— |
|
5,913 |
|
780 |
|
205,618 |
| ||||||||
|
Equity warrants |
|
28,595 |
|
— |
|
(160 |
) |
53 |
|
— |
|
1,220 |
|
(780 |
) |
28,928 |
| ||||||||
|
|
|
$ |
697,631 |
|
$ |
4,992 |
|
$ |
(25,849 |
) |
$ |
112,353 |
|
$ |
(522 |
) |
$ |
9,081 |
|
$ |
1,195 |
|
$ |
798,881 |
|
(1) Includes the impact of non-cash conversions.
As of March 31, 2014 and December 31, 2013, the fair value determination for the SBIC debentures recorded at fair value primarily consisted of unobservable inputs. As a result, the SBIC debentures which are recorded at fair value were categorized as Level 3. Main Street determines the fair value of these instruments primarily using a Yield-to-Maturity approach that analyzes the discounted cash flows of interest and principal for each SBIC debenture recorded at fair value based on estimated market interest rates for debt instruments of similar structure, terms, and maturity. Main Street’s estimate of the expected repayment date of principal for each SBIC debenture recorded at fair value is the legal maturity date of the instrument.
The significant unobservable inputs used in the fair value measurement of Main Street’s SBIC debentures recorded at fair value are the estimated market interest rates used to fair value each debenture using the yield valuation technique described above. Significant increases (decreases) in the Yield-to-Maturity valuation inputs in isolation would result in a significantly lower (higher) fair value measurement.
The following table provides a summary of the significant unobservable inputs used to fair value Main Street’s Level 3 SBIC debentures as of March 31, 2014 (amounts in thousands):
|
Type of Instrument |
|
Fair Value as of |
|
Valuation Technique |
|
Significant Unobservable Inputs |
|
Range |
|
Weighted |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
SBIC Debentures |
|
$ |
63,239 |
|
Discounted cash flow |
|
Estimated market interest rates |
|
7.7% |
- |
9.2% |
|
8.5% |
|
The following table provides a summary of the significant unobservable inputs used to fair value Main Street’s Level 3 SBIC debentures as of December 31, 2013 (amounts in thousands):
|
Type of Instrument |
|
Fair Value as of |
|
Valuation Technique |
|
Significant Unobservable Inputs |
|
Range |
|
Weighted |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
SBIC Debentures |
|
$ |
62,050 |
|
Discounted cash flow |
|
Estimated market interest rates |
|
8.5% |
- |
9.1% |
|
8.9% |
|
The following table provides a summary of changes for the Level 3 SBIC debentures recorded at fair value for the three months ended March 31, 2014 (amounts in thousands):
|
|
|
|
|
|
|
|
|
Net |
|
|
| |||||
|
|
|
|
|
|
|
|
|
Unrealized |
|
|
| |||||
|
Type of |
|
Fair Value as of |
|
|
|
New SBIC |
|
(Appreciation) |
|
Fair Value as of |
| |||||
|
Instrument |
|
December 31, 2013 |
|
Repayments |
|
Debentures |
|
Depreciation |
|
March 31, 2014 |
| |||||
|
SBIC Debentures at fair value |
|
$ |
62,050 |
|
$ |
— |
|
$ |
— |
|
$ |
1,189 |
|
$ |
63,239 |
|
The following table provides a summary of changes for the Level 3 SBIC debentures recorded at fair value for the three months ended March 31, 2013 (amounts in thousands):
|
|
|
|
|
|
|
|
|
Net |
|
|
| |||||
|
Type of |
|
Fair Value as of |
|
|
|
New SBIC |
|
(Appreciation) |
|
Fair Value as of |
| |||||
|
Instrument |
|
December 31, 2012 |
|
Repayments |
|
Debentures |
|
Depreciation |
|
March 31, 2013 |
| |||||
|
SBIC Debentures at fair value |
|
$ |
86,467 |
|
$ |
— |
|
$ |
— |
|
$ |
1,212 |
|
$ |
87,679 |
|
At March 31, 2014 and December 31, 2013, Main Street’s investments and SBIC debentures at fair value were categorized as follows in the fair value hierarchy for ASC 820 purposes:
|
|
|
|
|
Fair Value Measurements |
| ||||||||
|
|
|
|
|
(in thousands) |
| ||||||||
|
|
|
|
|
Quoted Prices in Active |
|
Significant Other |
|
Significant |
| ||||
|
At March 31, 2014 |
|
Fair Value |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
LMM portfolio investments |
|
$ |
654,431 |
|
$ |
— |
|
$ |
12,956 |
|
$ |
641,475 |
|
|
Middle Market portfolio investments |
|
491,611 |
|
— |
|
— |
|
491,611 |
| ||||
|
Private Loan portfolio investments |
|
116,640 |
|
— |
|
— |
|
116,640 |
| ||||
|
Other Portfolio investments |
|
43,872 |
|
— |
|
— |
|
43,872 |
| ||||
|
External Investment Manager |
|
2,325 |
|
— |
|
— |
|
2,325 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total portfolio investments |
|
1,308,879 |
|
— |
|
12,956 |
|
1,295,923 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Marketable securities and idle funds investments |
|
11,258 |
|
11,258 |
|
— |
|
— |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total investments |
|
$ |
1,320,137 |
|
$ |
11,258 |
|
$ |
12,956 |
|
$ |
1,295,923 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
SBIC Debentures at fair value |
|
$ |
63,239 |
|
$ |
— |
|
$ |
— |
|
$ |
63,239 |
|
|
|
|
|
|
Fair Value Measurements |
| ||||||||
|
|
|
|
|
(in thousands) |
| ||||||||
|
|
|
|
|
Quoted Prices in Active |
|
Significant Other |
|
Significant |
| ||||
|
At December 31, 2013 |
|
Fair Value |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
LMM portfolio investments |
|
$ |
659,405 |
|
$ |
— |
|
$ |
10,235 |
|
$ |
649,170 |
|
|
Middle Market portfolio investments |
|
471,458 |
|
— |
|
69,063 |
|
402,395 |
| ||||
|
Private Loan portfolio investments |
|
111,463 |
|
— |
|
— |
|
111,463 |
| ||||
|
Other Portfolio investments |
|
42,798 |
|
— |
|
2,000 |
|
40,798 |
| ||||
|
External Investment Manager |
|
1,064 |
|
— |
|
— |
|
1,064 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total portfolio investments |
|
1,286,188 |
|
— |
|
81,298 |
|
1,204,890 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Marketable securities and idle funds investments |
|
13,301 |
|
13,301 |
|
— |
|
— |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total investments |
|
$ |
1,299,489 |
|
$ |
13,301 |
|
$ |
81,298 |
|
$ |
1,204,890 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
SBIC Debentures at fair value |
|
$ |
62,050 |
|
$ |
— |
|
$ |
— |
|
$ |
62,050 |
|
Portfolio Investment Composition
Main Street’s lower middle market (“LMM”) portfolio investments primarily consist of secured debt, equity warrants and direct equity investments in privately held, LMM companies based in the United States. Main Street’s LMM portfolio companies generally have annual revenues between $10 million and $150 million, and its LMM investments generally range in size from $5 million to $50 million. The LMM debt investments are typically secured by either a first or second lien on the assets of the portfolio company, primarily bear interest at fixed rates, and generally have a term of between five and seven years from the original investment date. In most LMM portfolio companies, Main Street usually receives nominally priced equity warrants and/or makes direct equity investments in connection with a debt investment.
Main Street’s middle market (“Middle Market”) portfolio investments primarily consist of direct investments in or secondary purchases of interest-bearing debt securities in privately held companies based in the United States that are generally larger in size than the LMM companies included in Main Street’s LMM portfolio. Main Street’s Middle Market portfolio companies generally have annual revenues between $150 million and $1.5 billion and its Middle Market investments generally range in size from $3 million to $15 million. Main Street’s Middle Market portfolio debt investments are generally secured by either a first or second priority lien on the assets of the company and typically have a term of between three and five years.
Main Street’s Private Loan (“Private Loan”) portfolio investments primarily consist of investments in interest-bearing debt securities in companies that are consistent with the size of companies in its LMM portfolio or its Middle Market portfolio, but are investments which have been originated through strategic relationships with other investment funds on a collaborative basis. Main Street’s Private Loan portfolio debt investments are generally secured by either a first or second priority lien and typically have a term of between three and seven years.
Main Street’s other portfolio (“Other Portfolio”) investments primarily consist of investments which are not consistent with the typical profiles for LMM, Middle Market and Private Loan portfolio investments, including investments which may be managed by third parties. In the Other Portfolio, Main Street may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds.
Main Street’s external asset management business is conducted through its External Investment Manager. Main Street has entered into an agreement through the Internal Investment Manager to provide the External Investment Manager with asset management service support for HMS Income Fund, Inc. (“HMS Income”). Through this agreement, Main Street provides management and other services to the External Investment Manager, as well as access to Main Street’s employees, infrastructure, business relationships, management expertise and capital raising capabilities. Beginning in the first quarter of 2014, Main Street charges the External Investment Manager an allocation of expenses for the use of these services, and Main Street’s total expenses for the first quarter of 2014 include an offset of $0.3 million for the allocation of these expenses (see Note D for additional information). The External Investment Manager earns management fees based on the assets of the funds under management and may earn incentive fees, or a carried interest, based on the performance of the funds managed.
Investment income, consisting of interest, dividends and fees, can fluctuate dramatically due to various factors, including the level of new investment activity, repayments of debt investments or sales of equity interests. Investment income in any given year could also be highly concentrated among several portfolio companies. For the three months ended March 31, 2014 and 2013, Main Street did not record investment income from any single portfolio company in excess of 10% of total investment income.
As of March 31, 2014, Main Street had debt and equity investments in 61 LMM portfolio companies with an aggregate fair value of approximately $654.4 million, with a total cost basis of approximately $530.6 million, and a weighted average annual effective yield on its LMM debt investments of approximately 15.1%. As of March 31, 2014, approximately 75% of Main Street’s total LMM portfolio investments at cost were in the form of debt investments and approximately 86% of such debt investments at cost were secured by first priority liens on the assets of Main Street’s LMM portfolio companies. At March 31, 2014, Main Street had equity ownership in approximately 95% of its LMM portfolio companies and the average fully diluted equity ownership in those portfolio companies was approximately 33%. As of December 31, 2013, Main Street had debt and equity investments in 62 LMM portfolio companies with an aggregate fair value of approximately $659.4 million, with a total cost basis of approximately $543.3 million, and a weighted average annual effective yield on its LMM debt investments of approximately 14.7%. As of December 31, 2013, approximately 76% of Main Street’s total LMM portfolio investments at cost were in the form of debt investments and approximately 86% of such debt investments at cost were secured by first priority liens on the assets of Main Street’s LMM portfolio companies. At December 31, 2013, Main Street had equity ownership in approximately 94% of its LMM portfolio companies and the average fully diluted equity ownership in those portfolio companies was approximately 33%. The weighted average annual yields were computed using the effective interest rates for all debt investments at cost as of March 31, 2014 and December 31, 2013, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status.
As of March 31, 2014, Main Street had Middle Market portfolio investments in 89 companies, collectively totaling approximately $491.6 million in fair value with a total cost basis of approximately $487.4 million. The weighted average EBITDA for the 89 Middle Market portfolio companies was approximately $71.3 million as of March 31, 2014. As of March 31, 2014, substantially all of Main Street’s Middle Market portfolio investments were in the form of debt investments and approximately 92% of such debt investments at cost were secured by first priority liens on portfolio company assets. The weighted average annual effective yield on Main Street’s Middle Market portfolio debt investments was approximately 7.6% as of March 31, 2014. As of December 31, 2013, Main Street had Middle Market portfolio investments in 92 companies, collectively totaling approximately $471.5 million in fair value with a total cost basis of approximately $468.3 million. The weighted average EBITDA for the 92 Middle Market portfolio companies was approximately $79.0 million as of December 31, 2013. As of December 31, 2013, substantially all of its Middle Market portfolio investments were in the form of debt investments and approximately 92% of such debt investments at cost were secured by first priority liens on portfolio company assets. The weighted average annual effective yield on Main Street’s Middle Market portfolio debt investments was approximately 7.8% as of December 31, 2013. The weighted average annual yields were computed using the effective interest rates for all debt investments at cost as of March 31, 2014 and December 31, 2013, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments.
As of March 31, 2014, Main Street had Private Loan portfolio investments in 17 companies, collectively totaling approximately $116.6 million in fair value with a total cost basis of approximately $119.4 million. The weighted average EBITDA for the 17 Private Loan portfolio companies was approximately $7.1 million as of March 31, 2014. As of March 31, 2014, approximately 96% of Main Street’s Private Loan portfolio investments were in the form of debt investments and approximately 99% of such debt investments at cost were secured by first priority liens on portfolio company assets. The weighted average annual effective yield on Main Street’s Private Loan portfolio debt investments was approximately 11.1% as of March 31, 2014. As of December 31, 2013, Main Street had Private Loan portfolio investments in 15 companies, collectively totaling approximately $111.5 million in fair value with a total cost basis of approximately $111.3 million. The weighted average EBITDA for the 15 Private Loan portfolio companies was approximately $18.4 million as of December 31, 2013. As of December 31, 2013, approximately 95% of its Private Loan portfolio investments were in the form of debt investments and approximately 98% of such debt investments at cost were secured by first priority liens on portfolio company assets. The weighted average annual effective yield on Main Street’s Private Loan portfolio debt investments was approximately 11.3% as of December 31, 2013. The weighted average annual yields were computed using the effective interest rates for all debt investments at cost as of March 31, 2014 and December 31, 2013, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments.
As of March 31, 2014, Main Street had Other Portfolio investments in 5 companies, collectively totaling approximately $43.9 million in fair value and approximately $41.3 million in cost basis and which comprised 3.4% of Main Street’s Investment Portfolio at fair value as of March 31, 2014. As of December 31, 2013, Main Street had Other Portfolio investments in 6 companies, collectively totaling approximately $42.8 million in fair value and approximately $40.1 million in cost basis and which comprised 3.3% of Main Street’s Investment Portfolio at fair value as of December 31, 2013.
As discussed further above, Main Street holds an investment in the External Investment Manager, a wholly owned subsidiary that is treated as a portfolio investment. As of March 31, 2014, there was no cost basis in this investment and the investment had a fair value of $2.3 million, which comprised 0.2% of its Investment Portfolio at fair value. As of December 31, 2013, there was no cost basis in this investment and the investment had a fair value of $1.1 million, which comprised 0.1% of Main Street’s Investment Portfolio at fair value.
The following tables summarize the composition of Main Street’s total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments at cost and fair value by type of investment as a percentage of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments, as of March 31, 2014 and December 31, 2013 (this information excludes the Other Portfolio investments and the External Investment Manager).
|
Cost: |
|
March 31, 2014 |
|
December 31, 2013 |
|
|
First lien debt |
|
79.4% |
|
79.0% |
|
|
Equity |
|
10.3% |
|
10.4% |
|
|
Second lien debt |
|
7.9% |
|
8.4% |
|
|
Equity warrants |
|
1.9% |
|
1.9% |
|
|
Other |
|
0.5% |
|
0.3% |
|
|
|
|
100.0% |
|
100.0% |
|
|
Fair Value: |
|
March 31, 2014 |
|
December 31, 2013 |
|
|
First lien debt |
|
69.6% |
|
69.9% |
|
|
Equity |
|
20.0% |
|
19.3% |
|
|
Second lien debt |
|
7.1% |
|
7.6% |
|
|
Equity warrants |
|
2.8% |
|
2.9% |
|
|
Other |
|
0.5% |
|
0.3% |
|
|
|
|
100.0% |
|
100.0% |
|
The following tables summarize the composition of Main Street’s total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments by geographic region of the United States and other countries at cost and fair value as a percentage of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments, as of March 31, 2014 and December 31, 2013 (this information excludes the Other Portfolio investments and the External Investment Manager). The geographic composition is determined by the location of the corporate headquarters of the portfolio company.